<PAGE>
PROSPECTUS SUPPLEMENT
(TO PROSPECTUS DATED MAY 11, 1998)
INFORMATION CONTAINED HEREIN IS SUBJECT TO CHANGE, COMPLETION OR AMENDMENT
WITHOUT NOTICE. THIS PRELIMINARY PROSPECTUS SUPPLEMENT SHALL NOT CONSTITUTE AN
OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE
OF THESE SECURITIES 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. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE
ACCEPTED BEFORE A PROSPECTUS SUPPLEMENT IS DELIVERED IN FINAL FORM.
<PAGE>
FILED PURSUANT TO RULE 424(B)(5)
REGISTRATION NO. 333-48943
SUBJECT TO COMPLETION, DATED MAY 11, 1998
$ (APPROXIMATE)
FIRST UNION-LEHMAN BROTHERS-BANK OF AMERICA
COMMERCIAL MORTGAGE TRUST
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1998-C2
FIRST UNION COMMERCIAL MORTGAGE SECURITIES, INC.
(DEPOSITOR)
The Series 1998-C2 Commercial Mortgage Pass-Through Certificates (the
"Certificates") will consist of fifteen classes (each, a "Class") of regular
Certificates, including the seven Classes of Certificates offered hereby
(collectively, the "Offered Certificates"). The Certificates, in the aggregate,
will represent the entire undivided beneficial ownership interest in a trust
fund (the "Trust Fund") to be established by First Union Commercial Mortgage
Securities, Inc. (the "Depositor"), that is expected to consist primarily of a
segregated pool (the "Mortgage Pool") of 676 conventional, fixed rate mortgage
loans (the "Mortgage Loans") secured by first liens on commercial and
multifamily properties (each, a "Mortgaged Property"). As of May 1, 1998 (the
"Cut-off Date"), the Mortgage Loans had an aggregate principal balance (the
"Initial Pool Balance") of approximately $3,475,264,083, after application of
all payments of principal due on or before such date, whether or not received.
First Union National Bank (in such capacity, the "Master Servicer")
(CONTINUED ON NEXT PAGE)
PROSPECTIVE INVESTORS SHOULD CONSIDER THE INFORMATION SET FORTH UNDER "RISK
FACTORS" BEGINNING ON PAGE S-29 OF THIS PROSPECTUS SUPPLEMENT AND ON PAGE 19 OF
THE PROSPECTUS.
---------------------
PROCEEDS OF THE ASSETS IN THE TRUST FUND WILL BE THE SOLE SOURCE OF PAYMENTS ON
THE OFFERED CERTIFICATES. THE OFFERED CERTIFICATES WILL NOT REPRESENT AN
INTEREST IN OR OBLIGATION OF THE DEPOSITOR, ANY MORTGAGE LOAN SELLER, EITHER
UNDERWRITER, THE MASTER SERVICER, THE TRUSTEE OR ANY OF THEIR RESPECTIVE
AFFILIATES. NEITHER THE OFFERED CERTIFICATES NOR THE MORTGAGE LOANS
WILL BE INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OR INSTRUMENTALITY.
------------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS SUPPLEMENT
OR THE ACCOMPANYING PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
------------------------------
THE ATTORNEY GENERAL OF THE STATE OF NEW YORK HAS NOT PASSED ON OR ENDORSED THE
MERITS OF THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.
<TABLE>
<CAPTION>
ASSUMED
INITIAL % OF INITIAL FINAL
CERTIFICATE POOL PASS- THROUGH DISTRIBUTION EXPECTED
CLASS BALANCE(1) BALANCE(1) RATE DATE(2) CUSIP NO. RATING(3)
<S> <C> <C> <C> <C> <C> <C>
Class A-1.....................
Class A-2.....................
Class B.......................
Class C.......................
Class D.......................
Class E.......................
Class IO...................... (4) (4) (4)
</TABLE>
(1) Subject to a permitted variance of plus or minus 5%.
(2) The Assumed Final Distribution Date has been determined on the basis of the
assumptions set forth in "Description of the Certificates-- Assumed Final
Distribution Date; Rated Final Distribution Date" herein and a 0% CPR (as
defined herein). The "Rated Final Distribution Date" is ,
the first Distribution Date that follows the second anniversary of the end
of the amortization term for the Mortgage Loan that, as of the Cut-off Date,
has the longest remaining amortization term. See "Description of the
Certificates--Assumed Final Distribution Date; Rated Final Distribution
Date" and "Ratings" herein.
(3)
(4) The Class IO Certificates will not have a Certificate Balance nor will they
entitle the holders thereof to receive distributions of principal, but will
entitle such holders to receive payments of the aggregate interest accrued
on the notional amount of each of the Class IO Components, as described
herein. The aggregate of such notional amounts will initially equal
approximately $3,475,264,083. See "Description of the Certificates--
Certificate Balances and Notional Amount" and "--Pass-Through Rates" herein.
------------------------------
The Offered Certificates will be offered by Lehman Brothers Inc. and First
Union Capital Markets, a division of Wheat First Securities, Inc. (together, the
"Underwriters") from time to time in negotiated transactions or otherwise at
varying prices to be determined at the time of sale. Proceeds to the Depositor
from the sale of the Offered Certificates, before deducting expenses payable by
the Depositor, will be approximately $ , which includes accrued interest.
See "Method of Distribution" herein.
The Offered Certificates are offered by the Underwriters when, as and if
issued and delivered to and accepted by the Underwriters, subject to prior sale
and subject to the Underwriters' right to reject orders in whole or in part. It
is expected that the Offered Certificates will be delivered in book-entry form
through the Same-Day Funds Settlement System of The Depository Trust Company on
or about May 28, 1998.
------------------------------
LEHMAN BROTHERS FIRST UNION CAPITAL MARKETS
BANCAMERICA ROBERTSON STEPHENS
The date of this Prospectus Supplement is May , 1998.
<PAGE>
[MAP OF UNITED STATES OF AMERICA OMITTED. MAP REFLECTS NUMBER OF MORTGAGED
PROPERTIES, CUT-OFF DATE BALANCE OF MORTGAGE LOANS AND PERCENTAGES OF MORTGAGED
PROPERTIES BY STATE]
[PIECHART OMITTED. PIECHART INDICATES PROPERTY TYPES IN MORTGAGE POOL]
<PAGE>
(COVER CONTINUED)
directly or through one or more subservicers, and CRIIMI MAE Services Limited
Partnership (the "Special Servicer"), will service the Mortgage Loans. The
Offered Certificates bear the class designations and have the characteristics
set forth in the table above. Simultaneously with the issuance of the Offered
Certificates, the Private Certificates (as defined herein) will be issued. Only
the Offered Certificates are offered hereby.
The Depositor will acquire certain of the Mortgage Loans from First Union
National Bank, certain of the Mortgage Loans from an affiliate of Lehman
Brothers Inc. and certain of the Mortgage Loans from Bank of America NT&SA
(each, in such capacity, a "Mortgage Loan Seller"). On or before the date the
Certificates are issued, the Depositor will transfer the Mortgage Loans, without
recourse, to Norwest Bank Minnesota, National Association, as trustee of the
Trust Fund (the "Trustee"), in exchange for the Certificates.
As and to the extent described herein, the Private Certificates will be
subordinate to the Offered Certificates; the Class B, Class C, Class D and Class
E Certificates will be subordinate to the Class A-1, Class A-2 and Class IO
Certificates; the Class C, Class D and Class E Certificates will be subordinate
to the Class B Certificates; the Class D and Class E Certificates will be
subordinate to the Class C Certificates; and the Class E Certificates will be
subordinate to the Class D Certificates. Distributions of interest on and
principal of the Certificates will be made, to the extent of available funds, on
the 18th day of each month or, if any such 18th day is not a business day, then
on the next succeeding business day, commencing June 18, 1998 (each, a
"Distribution Date"). As described herein, distributions allocable to interest
accrued on each Class of Offered Certificates (other than the Class IO
Certificates) will be made on each Distribution Date based on the pass-through
rate (the "Pass-Through Rate") applicable to such Class and the principal amount
(the "Certificate Balance") of such Class outstanding immediately prior to such
Distribution Date. As described herein, distributions allocable to interest
accrued on the Class IO Certificates will be made on each Distribution Date in
an amount equal to the aggregate amount of interest which has accrued on the
notional amount of each of the Class IO Components (as defined herein). The
Class IO Certificates will have fourteen Class IO Components, each with a
designation and a notional amount that corresponds with the designation and
Certificate Balance of a Class of Sequential Pay Certificates (as defined
herein). Interest will accrue on the notional amount of each Class IO Component
based on the Pass-Through Rate of such Class IO Component. The Pass-Through Rate
applicable to each Class IO Component will be equal to the Weighted Average Net
Mortgage Rate (as defined herein) minus the Pass-Through Rate applicable to the
corresponding Class of Sequential Pay Certificates. As described herein,
distributions allocable to principal of the Offered Certificates will be made
sequentially to the Class A-1, Class A-2, Class B, Class C, Class D and Class E
Certificates, in that order, until the respective Classes of Certificates are
retired. The Class IO Certificates will not have a Certificate Balance, nor will
they entitle the holders thereof to distributions of principal. The holders of
the Offered Certificates may also receive portions of any Prepayment Premiums
and Yield Maintenance Charges (each as defined herein) to the extent described
herein. See "Description of the Certificates--Distributions" herein.
The yield to maturity on each Class of Offered Certificates (other than the
Class IO Certificates) will depend on, among other things, the rate and timing
of principal payments (including by reason of prepayments, defaults and
liquidations) on the Mortgage Loans that are applied in reduction of the
Certificate Balance of such Class. THE YIELD TO MATURITY ON THE CLASS IO
CERTIFICATES WILL BE HIGHLY SENSITIVE TO THE RATE AND TIMING OF PRINCIPAL
PAYMENTS (INCLUDING BY REASON OF PREPAYMENTS, DEFAULTS AND LIQUIDATIONS) ON THE
MORTGAGE LOANS AND INVESTORS IN THE CLASS IO CERTIFICATES SHOULD FULLY CONSIDER
THE ASSOCIATED RISKS, INCLUDING THE RISK THAT A RAPID RATE OF PREPAYMENT OF THE
MORTGAGE LOANS COULD RESULT IN THE FAILURE OF SUCH INVESTORS TO FULLY RECOUP
THEIR INITIAL INVESTMENTS. The allocation to any Class of Offered Certificates
of any Prepayment Premium or Yield Maintenance Charge may be insufficient to
offset fully the adverse effects on the anticipated yield to maturity resulting
from the corresponding principal prepayment. Any delay in collection of a
Balloon Payment (as defined herein) due at the maturity of a Mortgage Loan or
any delay in the repayment of the principal balance of an ARD Loan by its
Anticipated Repayment Date (each as defined herein) will likely extend the
weighted average life of the Class or Classes of Offered Certificates entitled
to distributions in respect of principal as of the date such Balloon Payment was
due or as of such Anticipated Repayment Date. See "Description of the
Certificates--Certificate Balances and Notional Amount" and "--Distributions,"
"Yield and Maturity Considerations" and "Servicing of the Mortgage
Loans--Modifications, Waivers and Amendments" herein, and "Yield and Maturity
Considerations" and "Risk Factors-- Prepayments; Average Life of Certificates;
Yields" in the Prospectus.
As described herein, one or more separate "real estate mortgage investment
conduit" ("REMIC") elections will be made with respect to the Trust Fund for
federal income tax purposes. The Offered Certificates will constitute "regular
interests" in one of such REMICs. See "Material Federal Income Tax Consequences"
herein and in the Prospectus.
There is currently no secondary market for the Offered Certificates. Each of
the Underwriters currently intends to make a secondary market in the Offered
Certificates, but has no obligation to do so. See "Risk Factors--The
Certificates--Limited Liquidity" herein.
This Prospectus and Prospectus Supplements may be used by the Depositor,
First Union Capital Markets, an affiliate of the Depositor, and any other
affiliate of the Depositor when required under the federal securities laws in
connection with offers and sales of Offered Certificates in furtherance of
market-making activities in Offered Certificates. First Union Capital Markets or
any such other affiliate may act as principal or agent in such transactions.
Such sales will be made at prices related to prevailing market prices at the
time of sale or otherwise.
THE PROSPECTUS THAT ACCOMPANIES THIS PROSPECTUS SUPPLEMENT CONTAINS
IMPORTANT INFORMATION REGARDING THIS OFFERING THAT IS NOT CONTAINED HEREIN, AND
PROSPECTIVE INVESTORS ARE URGED TO READ BOTH THE PROSPECTUS AND THIS PROSPECTUS
SUPPLEMENT IN FULL TO OBTAIN MATERIAL INFORMATION CONCERNING THE OFFERED
CERTIFICATES. SALES OF THE OFFERED CERTIFICATES MAY NOT BE CONSUMMATED UNLESS
THE PURCHASER HAS RECEIVED A COPY OF BOTH THE PROSPECTUS AND THIS PROSPECTUS
SUPPLEMENT.
UNTIL AUGUST 1998, ALL DEALERS EFFECTING TRANSACTIONS IN THE OFFERED
CERTIFICATES, WHETHER OR NOT PARTICIPATING IN THIS DISTRIBUTION, MAY BE REQUIRED
TO DELIVER A PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS DELIVERY REQUIREMENT IS
IN ADDITION TO THE OBLIGATION OF DEALERS TO DELIVER A PROSPECTUS SUPPLEMENT AND
PROSPECTUS WHEN ACTING AS UNDERWRITERS AND WITH RESPECT TO THEIR UNSOLD
ALLOTMENTS OR SUBSCRIPTIONS.
S-3
<PAGE>
(This page has been left blank intentionally.)
S-4
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
-----------
<S> <C>
SUMMARY OF PROSPECTUS SUPPLEMENT.......................................................................... S-6
RISK FACTORS.............................................................................................. S-29
Certain Risk Factors Associated with the Certificates................................................. S-29
LIMITED LIQUIDITY FOR OFFERED CERTIFICATES........................................................ S-29
CERTAIN YIELD AND MATURITY CONSIDERATIONS......................................................... S-30
POTENTIAL CONFLICT OF INTEREST.................................................................... S-30
RISK OF YEAR 2000................................................................................. S-31
Certain Risk Factors Associated with the Mortgage Loans............................................... S-31
RISKS OF LENDING ON INCOME-PRODUCING PROPERTIES................................................... S-31
CREDIT LEASE MORTGAGED PROPERTIES................................................................. S-33
FACTORS AFFECTING LEASE ENHANCEMENT POLICY PROCEEDS............................................... S-34
NONRECOURSE MORTGAGE LOANS........................................................................ S-34
ENVIRONMENTAL LAW CONSIDERATIONS.................................................................. S-34
BALLOON PAYMENTS.................................................................................. S-34
RISK OF SUBORDINATED DEBT......................................................................... S-35
DESCRIPTION OF THE MORTGAGE POOL.......................................................................... S-36
General............................................................................................... S-36
Mortgage Loan History................................................................................. S-37
Certain Terms and Conditions of the Mortgage Loans.................................................... S-37
MORTGAGE RATES; CALCULATIONS OF INTEREST.......................................................... S-37
DUE DATES......................................................................................... S-37
AMORTIZATION...................................................................................... S-38
PREPAYMENT PROVISIONS............................................................................. S-38
OTHER FINANCING................................................................................... S-39
NONRECOURSE OBLIGATIONS........................................................................... S-39
"DUE-ON-SALE" and "DUE-ON-ENCUMBRANCE" Provisions................................................. S-39
CROSS-DEFAULT AND CROSS-COLLATERALIZATION OF CERTAIN MORTGAGE LOANS............................... S-39
LOW INCOME HOUSING TAX CREDITS.................................................................... S-39
Assessments of Property Condition..................................................................... S-40
PROPERTY INSPECTIONS.............................................................................. S-40
APPRAISALS........................................................................................ S-40
ENVIRONMENTAL ASSESSMENTS......................................................................... S-40
ENGINEERING ASSESSMENTS........................................................................... S-40
EARTHQUAKE ANALYSES............................................................................... S-41
The Four Largest Loans................................................................................ S-41
THE IBM/SOMERS LOAN............................................................................... S-41
THE IBM/BROADMOOR LOAN............................................................................ S-42
THE FOX VALLEY LOAN............................................................................... S-45
THE HAWTHORN CENTER LOAN.......................................................................... S-46
Credit Lease Loans.................................................................................... S-48
Additional Mortgage Loan Information.................................................................. S-51
THE MORTGAGE POOL................................................................................. S-51
The Mortgage Loan Sellers............................................................................. S-82
Assignment of the Mortgage Loans; Repurchases......................................................... S-82
Representations and Warranties; Repurchases........................................................... S-83
Changes in Mortgage Pool Characteristics.............................................................. S-84
SERVICING OF THE MORTGAGE LOANS........................................................................... S-85
General............................................................................................... S-85
The Master Servicer and Special Servicer.............................................................. S-86
The Special Servicer.................................................................................. S-86
Servicing and other Compensation and Payment of Expenses.............................................. S-88
Modifications, Waivers and Amendments................................................................. S-89
The Controlling Class Representative.................................................................. S-91
LIMITATION ON LIABILITY OF CONTROLLING CLASS REPRESENTATIVE....................................... S-91
REO Properties; Sale of Mortgage Loans................................................................ S-92
Inspections; Collection of Operating Information...................................................... S-93
DESCRIPTION OF THE CERTIFICATES........................................................................... S-94
General............................................................................................... S-94
Registration and Denominations........................................................................ S-94
Certificate Balances and Notional Amount.............................................................. S-95
Pass-Through Rates.................................................................................... S-96
Distributions......................................................................................... S-96
</TABLE>
S-5
<PAGE>
<TABLE>
<CAPTION>
PAGE
-----------
<S> <C>
GENERAL........................................................................................... S-96
THE AVAILABLE DISTRIBUTION AMOUNT................................................................. S-97
INTEREST RESERVE ACCOUNT.......................................................................... S-97
APPLICATION OF THE AVAILABLE DISTRIBUTION AMOUNT.................................................. S-98
DISTRIBUTABLE CERTIFICATE INTEREST................................................................ S-102
PRINCIPAL DISTRIBUTION AMOUNT..................................................................... S-102
TREATMENT OF REO PROPERTIES....................................................................... S-103
ALLOCATION OF PREPAYMENT PREMIUMS AND YIELD MAINTENANCE CHARGES................................... S-103
Subordination; Allocation of Losses and Certain Expenses.............................................. S-104
P&I Advances.......................................................................................... S-106
Appraisal Reductions.................................................................................. S-107
Reports to Certificateholders; Available Information.................................................. S-108
TRUSTEE REPORTS................................................................................... S-108
OTHER INFORMATION................................................................................. S-112
BOOK-ENTRY CERTIFICATES........................................................................... S-112
Assumed Final Distribution Date; Rated Final Distribution Date........................................ S-113
Voting Rights......................................................................................... S-114
Termination........................................................................................... S-114
The Trustee........................................................................................... S-115
YIELD AND MATURITY CONSIDERATIONS......................................................................... S-115
Yield Considerations.................................................................................. S-115
GENERAL........................................................................................... S-115
RATE AND TIMING OF PRINCIPAL PAYMENT.............................................................. S-116
LOSSES AND SHORTFALLS............................................................................. S-117
PASS-THROUGH RATES................................................................................ S-117
CERTAIN RELEVANT FACTORS.......................................................................... S-117
DELAY IN PAYMENT OF DISTRIBUTIONS................................................................. S-118
UNPAID DISTRIBUTABLE CERTIFICATE INTEREST......................................................... S-118
YIELD SENSITIVITY OF THE CLASS IO CERTIFICATES.................................................... S-118
Price/Yield Tables.................................................................................... S-118
Weighted Average Life................................................................................. S-120
USE OF PROCEEDS........................................................................................... S-123
MATERIAL FEDERAL INCOME TAX CONSEQUENCES.................................................................. S-123
ERISA CONSIDERATIONS...................................................................................... S-124
LEGAL INVESTMENT.......................................................................................... S-126
METHOD OF DISTRIBUTION.................................................................................... S-127
LEGAL MATTERS............................................................................................. S-128
RATINGS................................................................................................... S-128
INDEX OF PRINCIPAL DEFINITIONS............................................................................ S-129
ANNEX A-1-- CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS AND MORTGAGED PROPERTIES........................ A-1
ANNEX A-2-- CERTAIN MONETARY TERMS OF THE MORTGAGE LOANS.................................................. A-2
ANNEX A-3-- CERTAIN INFORMATION REGARDING MULTIFAMILY MORTGAGED PROPERTIES................................ A-3
ANNEX B--TERM SHEET....................................................................................... B-1
ANNEX C--FORM OF DISTRIBUTION DATE STATEMENT.............................................................. C-1
ANNEX D--FORM OF DELINQUENT LOAN STATUS REPORT............................................................ D-1
ANNEX E--FORM OF HISTORICAL LOAN MODIFICATION REPORT...................................................... E-1
ANNEX F--FORM OF HISTORICAL LOSS ESTIMATE REPORT.......................................................... F-1
ANNEX G--FORM OF REO STATUS REPORT........................................................................ G-1
ANNEX H--FORM OF WATCH LIST REPORT........................................................................ H-1
ANNEX I--OPERATING STATEMENT ANALYSIS..................................................................... I-1
ANNEX J--NOI ADJUSTMENT WORKSHEET......................................................................... J-1
ANNEX K--COMPARATIVE FINANCIAL STATUS REPORT.............................................................. K-1
</TABLE>
S-6
<PAGE>
SUMMARY OF PROSPECTUS SUPPLEMENT
The following summary is qualified in its entirety by reference to the
detailed information appearing elsewhere in this Prospectus Supplement and in
the accompanying Prospectus. Certain capitalized terms used in this Summary may
be defined elsewhere in this Prospectus Supplement or in the Prospectus. An
"Index of Principal Definitions" is included at the end of both this Prospectus
Supplement and the Prospectus. Terms that are used but not defined in this
Prospectus Supplement have the meanings specified in the Prospectus. All
percentages of the Mortgage Loans, or of any specified group of Mortgage Loans,
referred to herein without further description are approximate percentages by
aggregate Cut-off Date Balance. References to percentages of Mortgaged
Properties are references to the percentages of the Initial Pool Balance
represented by the aggregate Cut-off Date Balance of the related Mortgage Loans.
All numerical information provided herein with respect to the Mortgage Loans is
provided on an approximate basis.
<TABLE>
<CAPTION>
INITIAL PERCENT OF PASS-
CERTIFICATE INITIAL POOL CREDIT THROUGH
CLASS RATING BALANCES(1) BALANCE(1) SUPPORT DESCRIPTION RATE
- -------------------------- ----------- --------------- ------------- ----------- ---------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Class A-1................. Fixed Coupon
Class A-2................. Fixed Coupon
Class B................... Fixed Coupon
Class C................... Fixed Coupon
Class D................... Fixed Coupon
Class E................... Fixed Coupon
Variable IO
Class IO.................. (3) N/A N/A Strip (4)
Class F................... (5) WAC (6)
Class G................... (5) WAC (6)
Class H................... (5) WAC (6)
Class J................... (5) WAC (6)
Class K................... (5) WAC (6)
Class L................... (5) WAC (6)
Class M................... (5) WAC (6)
Class N................... (5) WAC (6)
<CAPTION>
WEIGHTED CASH FLOW
AVERAGE LIFE OR PRINCIPAL
CLASS (YEARS)(2) WINDOW(2)
- -------------------------- --------------- -------------------
<S> <C> <C>
Class A-1.................
Class A-2.................
Class B...................
Class C...................
Class D...................
Class E...................
Class IO.................. N/A
Class F...................
Class G...................
Class H...................
Class J...................
Class K...................
Class L...................
Class M...................
Class N...................
</TABLE>
- ------------------------
(1) Subject to a permitted variance of plus or minus 5.0%.
(2) Based on 0% CPR and the other assumptions set forth under "Yield and
Maturity Considerations--Weighted Average Life" herein.
(3) The Class IO Certificates will not have a Certificate Balance nor will they
entitle the holders thereof to receive distributions of principal. See
"--Description of the Certificates--Certificate Balances and Notional
Amount" herein.
(4) Holders of the Class IO Certificates will be entitled to receive
distributions of interest in an amount equal to the aggregate interest
accrued on the notional amount of each of the Class IO Components, as
described herein. See "--Description of the Certificates--Pass-Through
Rates" herein.
(5) Not offered hereby. Accordingly, any information herein regarding the terms
of such Class of Certificates is provided solely because of its potential
relevance to a prospective purchaser of an Offered Certificate.
(6) With respect to each Distribution Date, the Pass-Through Rate will equal the
lesser of the rate set forth above and the applicable Weighted Average Net
Mortgage Rate (as defined herein).
S-7
<PAGE>
<TABLE>
<S> <C>
Title of Certificates........... First Union-Lehman Brothers-Bank of America Commercial
Mortgage Trust, Commercial Mortgage Pass-Through
Certificates, Series 1998-C2 (the "Certificates"), to be
issued in the following classes (each, a "Class"): (i) the
Class A-1 and Class A-2 Certificates (together, the "Class
A Certificates"); (ii) the Class B, Class C, Class D,
Class E, Class F, Class G, Class H, Class J, Class K,
Class L, Class M and Class N Certificates (collectively
with the Class A Certificates, the "Sequential Pay
Certificates"); (iii) the Class IO Certificates
(collectively with the Sequential Pay Certificates, the
"REMIC Regular Certificates"); and (iv) one or more
classes of residual certificates (collectively, the "REMIC
Residual Certificates"). Only the Class A-1, Class A-2,
Class B, Class C, Class D, Class E and Class IO
Certificates (collectively, the "Offered Certificates")
are offered hereby. The Class F, Class G, Class H, Class
J, Class K, Class L, Class M, Class N and REMIC Residual
Certificates (collectively, the "Private Certificates")
have not been registered under the Securities Act of 1933,
as amended (the "Securities Act"), and are not offered
hereby.
Depositor....................... First Union Commercial Mortgage Securities, Inc., a North
Carolina corporation. The Depositor is a wholly owned
subsidiary of FUNB, which is also one of the Mortgage Loan
Sellers and the Master Servicer. The Depositor also is an
affiliate of First Union Capital Markets, a division of
Wheat First Securities, Inc. ("First Union Capital
Markets"), one of the Underwriters. Neither the Depositor
nor any of its affiliates has insured or guaranteed the
Offered Certificates. See "The Depositor" in the
Prospectus.
Issuer.......................... The Trust Fund established under the Pooling and Servicing
Agreement, as it is described under "Description of the
Certificates."
Master Servicer................. First Union National Bank ("FUNB"), a national banking
association which has its principal office located in
Charlotte, North Carolina and which is a subsidiary of
First Union Corporation, a North Carolina corporation
registered as a bank holding company under the Bank
Holding Company Act of 1956, as amended. The Master
Servicer is one of the Mortgage Loan Sellers and an
affiliate of the Depositor and of First Union Capital
Markets, one of the Underwriters. See "Servicing of the
Mortgage Loans--The Master Servicer and Special Servicer"
and "--Servicing and Other Compensation and Payment of
Expenses" herein.
Special Servicer................ CRIIMI MAE Services Limited Partnership, a Maryland
limited partnership. The Special Servicer will be
responsible for performing certain servicing functions
with respect to the Mortgage Loans that, in general, are
in default or as to which default is imminent, for
administering any REO Property (as defined herein) and for
performing certain other servicing functions with respect
to the Mortgage Pool under the Pooling and Servicing
Agreement. The Controlling Class of Sequential Pay
Certificates (as defined herein) will have the right,
subject to certain conditions described
</TABLE>
S-8
<PAGE>
<TABLE>
<S> <C>
herein, to replace the Special Servicer and to select a
representative (the "Controlling Class Representative")
from whom the Special Servicer will seek advice and
approval and take direction under certain circumstances,
as described herein. It is anticipated that the Special
Servicer or an affiliate of the Special Servicer will
purchase all or a significant portion of the Private
Certificates on or about the Closing Date (as defined
below). See "Servicing of the Mortgage Loans--The Master
Servicer and Special Servicer" and "--Servicing and Other
Compensation and Payment of Expenses" herein.
Trustee......................... Norwest Bank Minnesota, National Association, a nationally
chartered bank.
Mortgage Loan Sellers........... An affiliate of Lehman Brothers Inc., which is one of the
Underwriters (such affiliate, the "Lehman Seller"), Bank
of America NT&SA, a national banking association and an
affiliate of BancAmerica Robertson Stephens, and FUNB.
FUNB is also the Master Servicer and an affiliate of the
Depositor and First Union Capital Markets, one of the
Underwriters. See "Description of the Mortgage Pool--The
Mortgage Loan Sellers" herein. The Underwriters expect to
sell a portion of the Offered Certificates to or through
BancAmerica Robertson Stephens.
Cut-off Date.................... May 1, 1998.
Closing Date.................... On or about May 28, 1998.
Registration of the Offered
Certificates................... The Offered Certificates of each Class will initially be
represented by one or more global Certificates registered
in the name of Cede & Co., as nominee of The Depository
Trust Company ("DTC"). No person acquiring an interest in
any Offered Certificate (any such person, a "Certificate
Owner") will be entitled to receive such Certificate in
fully registered, certificated form (a "Definitive Offered
Certificate"), except under the limited circumstances
described under "Description of the Certificates--
Registration and Denominations" herein and "Description of
the Certificates-- Book-Entry Registration and Definitive
Certificates" in the Prospectus. DTC will effect payments
and transfers in respect of the Offered Certificates by
means of its electronic recordkeeping services, acting
through certain participating organizations
("Participants"). This may result in certain delays in
receipt of payments by an investor and may restrict an
investor's ability to pledge its Certificates. Unless and
until Definitive Offered Certificates of any Class are
issued to the related Certificate Owners, all references
herein to the rights of holders of such Class of Offered
Certificates are to the rights of those Certificate Owners
as such rights may be exercised through DTC and its
Participants, except as otherwise specified herein.
Denominations................... The Offered Certificates of each Class will be issued,
maintained and transferred on the book entry records of
DTC and its Participants in denominations of $10,000
actual principal amount (or $100,000 notional amount with
respect to the Class IO
</TABLE>
S-9
<PAGE>
<TABLE>
<S> <C>
Certificates) as of the Closing Date, and in integral
multiples of $1 in excess thereof.
The Mortgage Pool............... The Mortgage Pool will consist of 676 conventional, fixed
rate Mortgage Loans. The Mortgage Loans have an aggregate
Cut-off Date Balance of $3,475,264,083 (the "Initial Pool
Balance"), subject to a variance of plus or minus 5.0%.
The "Cut-off Date Balance" of each Mortgage Loan will
equal the unpaid principal balance thereof as of the
Cut-off Date, after reduction for all payments of
principal due on or before such date, whether or not
received. For purposes of the numerical information
provided herein, each of the Mortgage Loans is deemed to
be secured by one Mortgaged Property, whether or not such
Mortgaged Property is comprised of more than one parcel.
Security for the Mortgage
Loans.......................... Generally, all of the Mortgage Loans are non-recourse
obligations of the related borrowers. No Mortgage Loan
will be insured or guaranteed by any governmental entity
or private insurer.
Six hundred and fifty-four (654) of the Mortgage Loans, or
91.4%, are secured by a first mortgage on the borrower's
fee simple estate, 15 of the Mortgage Loans, or 6.1%, are
secured by a first mortgage on the borrower's leasehold
estate, and seven of the Mortgage Loans, or 2.5%, are
secured by a first mortgage on both the borrower's
leasehold estate and an underlying fee simple estate, in
each case, in an income producing real property (each, a
"Mortgaged Property").
Property Types.................. Set forth below are the number of Mortgage Loans, and the
approximate percentage of the Initial Pool Balance
represented by such Mortgage Loans, that are secured by
Mortgaged Properties operated for each indicated purpose:
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE OF
NUMBER OF INITIAL POOL
PROPERTY TYPE MORTGAGE LOANS BALANCE
- ------------------------------------------- ------------------- ---------------
<S> <C> <C>
Multifamily(1)............................. 228 31.1%
Retail(2).................................. 172 27.2%
Office(3).................................. 74 20.4%
Hospitality(4)............................. 45 6.7%
Industrial/Warehouse....................... 44 3.8%
Health Care(5)............................. 12 1.9%
Self-Storage............................... 11 0.7%
Mixed Use.................................. 8 0.6%
Mobile Home Park........................... 5 0.4%
Credit Lease Loans(6)...................... 77 7.3%
</TABLE>
-----------------------------------------------------
(1) Including ten Mortgage Loans, or 0.9%, secured
by properties which are eligible to receive
low-income housing tax credits pursuant to
Section 42 of the Internal Revenue Code of 1986
(the "Code" and such properties, the "Section
42 Properties").
(2) Including 103 Mortgage Loans, or 20.1%, secured
by anchored retail or regional mall properties
and 69 Mortgage Loans, or 7.1%, secured by
unanchored retail properties.
(3) Including two Mortgage Loans, or 9.6%, secured
by Mortgaged Properties triple net leased to
International Business Machines Corporation
("IBM").
S-10
<PAGE>
(4) All but four of such Mortgage Loans, or 0.3%,
are secured by Mortgaged Properties which are
affiliated with recognized hotel/ motel
franchisors.
(5) Including two Mortgage Loans, or 0.1%, secured
by assisted living facilities; one Mortgage
Loan, or 0.2%, secured by a congregate care
facility; and nine Mortgage Loans, or 1.5%,
secured by skilled nursing facilities.
(6) Including 71 Mortgage Loans, or 6.6%, secured
by retail properties; two Mortgage Loans, or
0.1%, secured by office properties; and four
Mortgage Loans, or 0.6%, secured by health and
fitness properties.
<TABLE>
<S> <C>
Geographical Concentration...... The Mortgaged Properties are located throughout 43 states
and the District of Columbia. Set forth below are the
number of Mortgage Loans, and the approximate percentage
of the Initial Pool Balance represented by such Mortgage
Loans, that are secured by Mortgage Properties located in
the states with concentrations of Mortgage Loans above
5.0%:
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE OF
NUMBER OF INITIAL POOL
STATE MORTGAGE LOANS BALANCE
- ------------------------------------------- ------------------- ---------------
<S> <C> <C>
California................................. 115 11.8%
Texas...................................... 41 10.3%
New York................................... 30 9.1%
Illinois................................... 22 7.8%
Florida.................................... 58 7.1%
Georgia.................................... 31 6.2%
</TABLE>
<TABLE>
<S> <C>
Interest........................ All of the Mortgage Loans bear interest at annualized
rates ("Mortgage Rates") that will remain fixed for their
respective remaining loan terms, except as described
herein. Except with respect to six Mortgage Loans, or
14.4%, scheduled payments of principal and/or interest on
the Mortgage Loans ("Monthly Payments") are due monthly on
the first day of each month. See "Description of the
Mortgage Pool--Certain Terms and Conditions of the
Mortgage Loans--Due Dates" and "--Mortgage Rates;
Calculations of Interest" herein.
Amortization Characteristics.... Four hundred thirty-six (436) of the Mortgage Loans, or
57.0%, provide for Monthly Payments based on amortization
schedules significantly longer than their respective
remaining terms to maturity. As a result, such Mortgage
Loans ("Balloon Loans") will have substantial principal
amounts due and payable (each such amount, together with
the corresponding payment of interest, a "Balloon
Payment") on their respective scheduled maturity dates,
unless prepaid prior thereto. One hundred five (105) of
the Mortgage Loans, or 24.2%, are ARD Loans, as described
herein. See "Description of the Mortgage Pool--Certain
Terms and Conditions of the Mortgage Loans--Amortization"
herein. The remaining 135 Mortgage Loans, or 18.8%, are
self-amortizing. Six of the Balloon Loans, or 1.9%, one of
the ARD Loans or 4.4%, and twenty-six (26) of such
self-amortizing Mortgage Loans, or 1.7% (all but one of
which are Credit Lease Loans as described herein), provide
for increases in the amount of their respective Monthly
Payment at specified times in the future as set forth in
Annex A which coincide with rent increases on the
underlying Credit Leases, as defined herein. See "Risk
Factors--The
</TABLE>
S-11
<PAGE>
<TABLE>
<S> <C>
Mortgage Loans--Balloon Payments" herein and "Risk
Factors-- Balloon Payments; Borrower Default" in the
Prospectus.
Prepayment Provisions........... As of the Cut-off Date, all of the Mortgage Loans restrict
or prohibit voluntary principal prepayments. In general,
the Mortgage Loans: (i) prohibit voluntary prepayments of
principal for a period ending on a date specified in the
related Mortgage Note (as defined herein) and, in general,
thereafter impose a Yield Maintenance Charge and/or
Prepayment Premium (each as defined herein) for most of
their respective remaining terms to maturity (178 Mortgage
Loans, or 26.8%); (ii) prohibit voluntary prepayments of
principal for most of their respective terms (495 Mortgage
Loans, or 72.5%); or (iii) permit voluntary principal
prepayments provided that the prepayment is accompanied by
a Yield Maintenance Charge or by a Prepayment Premium for
most of their respective remaining terms to maturity
(three Mortgage Loans, or 0.7%). With respect to the 172
Mortgage Loans which impose Yield Maintenance Charges, 171
of such Mortgage Loans, or 25.3%, provide for the
calculation of the Yield Maintenance Charge using a
discount rate equal to the applicable Treasury Rate (as
set forth in the related Mortgage Note), one of such
Mortgage Loans, or 0.1%, provide for the calculation of
the Yield Maintenance Charge using a discount rate equal
to the applicable Treasury Rate plus 1.0%. See
"Description of the Mortgage Pool-- Certain Terms and
Conditions of the Mortgage Loans-- Prepayment Provisions"
and "--Additional Mortgage Loan Information" herein. With
respect to ARD Loans, voluntary principal prepayments
after the Anticipated Repayment Date are permitted without
material restrictions. The ability of the Master Servicer
or the Special Servicer to waive or modify the terms of
any Mortgage Loan relating to the payment of a Prepayment
Premium or Yield Maintenance Charge is limited as
described herein. See "Servicing of the Mortgage
Loans--Modifications, Waivers and Amendments" herein. The
Depositor makes no representation as to the enforceability
of the provision of any Mortgage Note requiring the
payment of a Prepayment Premium or Yield Maintenance
Charge, or of the collectability of any Prepayment Premium
or Yield Maintenance Charge.
Defeasance...................... Four hundred ninety-three (493) of the Mortgage Loans, or
72.5%, provide that, in general, beginning not earlier
than two years after the Closing Date, under certain
conditions, the holder of the Mortgage may require the
related borrower to substitute a pledge of "Defeasance
Collateral" in exchange for a release of the Mortgaged
Property from the lien of the related Mortgage in lieu of
prepaying the Mortgage Loan and paying the applicable
Yield Maintenance Charge or Prepayment Premium. In
general, "Defeasance Collateral" is required to consist of
direct, non-callable United States Treasury obligations
that provide for payments prior, but as close as possible,
to all successive Due Dates and the scheduled maturity
date (or Anticipated Repayment Date in the case of ARD
Loans), with each such payment being equal to or greater
than (with any excess to be returned to the borrower) the
</TABLE>
S-12
<PAGE>
<TABLE>
<S> <C>
Monthly Payment due on such date or (i) in the case of a
Balloon Loan on the scheduled maturity date, the Balloon
Payment, or (ii) in the case of an ARD Loan, the remaining
principal balance on its Anticipated Repayment Date. The
Pooling and Servicing Agreement will require the Master
Servicer or the Special Servicer to require each borrower
that proposes to prepay its Mortgage Loan to instead
pledge Defeasance Collateral if so specified in the
Mortgage Note, but in each case subject to certain
conditions, including confirmation from each Rating Agency
that acceptance of a pledge of the Defeasance Collateral
in lieu of a full prepayment will not result in a
downgrade, withdrawal or qualification of the rating then
assigned by it to any Class of Certificates.
Credit Lease Loans.............. Seventy-seven (77) of the Mortgage Loans, or 7.3% (the
"Credit Lease Loans"), are secured by Mortgages on
Mortgaged Properties that are, in each case, subject to a
lease (a "Credit Lease") to a tenant (each a "Tenant" and,
collectively, the "Tenants") which possesses (or whose
parent or other affiliate which guarantees the Credit
Lease obligation possesses) the rating indicated in the
Credit Lease Table. See "Description of the Mortgage
Pool-- Credit Lease Loans" herein. Scheduled monthly rent
payments (the "Monthly Rental 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 Lease Loans other
than the Balloon Payments with respect to Credit Lease
Loans which are Balloon Loans.
The Credit Leases generally provide that the Tenant is
responsible for all costs and expenses incurred in
connection with the maintenance and operation of the
related Mortgaged Property. In the event of a casualty or
condemnation of a material portion of the related
Mortgaged Property, either (i) the Credit Lease provides
that the Tenant is obligated to continue making payments,
and/or the Tenant must make an offer to purchase the
applicable Mortgaged Property for an amount not less than
the unpaid principal balance plus accrued interest on the
related Credit Lease Loan or (ii) the Trustee on behalf of
the Certificateholders will have the benefit of certain
non-cancelable credit lease enhancement insurance policies
(the "Lease Enhancement Policies") obtained to cover
certain casualty and/or condemnation risks. See
"Description of the Mortgage Pool--Credit Lease Loans"
herein.
Dates of Origination............ Except with respect to 21 Mortgage Loans, or 2.7%, all of
the Mortgage Loans were originated after September 1997.
Additional Mortgage Loan
Characteristics............... Set forth below is certain information regarding the
Mortgage Loans and the Mortgaged Properties as of the
Cut-off Date (all weighted averages set forth below are
based on the Cut-off Date Balances of the respective
Mortgage Loans). The Mortgage Pool is more fully
described, and additional information regarding the
Mortgage Loans and the Mortgaged Properties is set forth,
in the
</TABLE>
S-13
<PAGE>
<TABLE>
<S> <C>
tables under "Description of The Mortgage Pool--Additional
Mortgage Loan Information" herein and in Annex A hereto:
</TABLE>
<TABLE>
<CAPTION>
Minimum Cut-off Date Balance................................. $ 408,723
<S> <C>
Maximum Cut-off Date Balance................................. $178,378,814
Average Cut-off Date Balance................................. $ 5,140,923
Minimum Mortgage Rate........................................ 6.710%
Maximum Mortgage Rate........................................ 9.200%
Weighted Average Mortgage Rate............................... 7.257%
Minimum Remaining Term to Maturity (months).................. 51
Maximum Remaining Term to Maturity (months).................. 360
Weighted Average Remaining Term to Maturity (months)......... 152
Minimum Remaining Amortization Term (months)................. 115
Maximum Remaining Amortization Term (months)................. 360
Weighted Average Remaining Amortization Term (months)........ 316
Minimum Cut-off Date DSC Ratio(1)(2)......................... 1.06x
Maximum Cut-off Date DSC Ratio(2)............................ 3.53x
Weighted Average Cut-off Date DSC Ratio(2)................... 1.41x
Minimum Cut-off Date LTV Ratio(2)............................ 20.8%
Maximum Cut-off Date LTV Ratio(2)(3)......................... 85.0%
Weighted Average Cut-off Date LTV Ratio(2)................... 71.6%
Minimum Maturity Date LTV Ratio(4)........................... 18.2%
Maximum Maturity Date LTV Ratio(4)........................... 74.3%
Weighted Average Maturity Date LTV Ratio(4).................. 59.6%
</TABLE>
------------------------------------------------------------
(1) Except with respect to seven Mortgage Loans,
or 0.5%, the only Mortgage Loans (excluding
Credit Lease Loans) with DSC Ratios below 1.20x
are Mortgage Loans secured by Section 42
Properties.
(2) Calculated without regard to the Credit Lease
Loans.
(3) Except with respect to six Mortgage Loans, or
0.6%, the only Mortgage Loans (excluding Credit
Lease Loans) with Cut-off Date LTV Ratios in
excess of 80% are Mortgage Loans secured by
Section 42 Properties.
(4) At maturity with respect to Balloon Loans or
at the Anticipated Repayment Date with respect
to ARD Loans. Does not include self amortizing
Loans.
<TABLE>
<S> <C>
Mortgage Loan Sellers........... Two hundred seventy-seven (277) of the Mortgage Loans, or
50.0% (the "Lehman Loans"), will be acquired by the
Depositor from the Lehman Seller, which either originated
each such Mortgage Loan or acquired it in connection with
its commercial and multifamily mortgage loan conduit
program. Two hundred seventy-seven (277) of the Mortgage
Loans, or 40.3% (the "FUNB Loans"), will be acquired by
the Depositor from FUNB, which either originated each such
Mortgage Loan or acquired it in connection with its
commercial and multifamily mortgage loan conduit program.
One hundred twenty-two (122) of the Mortgage Loans, or
9.7% (the "Bank of America Loans"), will be acquired by
the Depositor from Bank of America NT&SA, which originated
each such Mortgage Loan in connection with its commercial
and multifamily mortgage loan conduit program. See
"Description of the Mortgage Pool" herein.
On or prior to the Closing Date, the Depositor will cause
the Mortgage Loan Sellers to assign the Mortgage Loans,
without recourse (except as set forth in the next
sentence), to the Trustee for the benefit of the holders
of the Certificates (the "Certificateholders"). In
connection with such assignment, each Mortgage Loan Seller
will make certain representations and warranties
</TABLE>
S-14
<PAGE>
<TABLE>
<S> <C>
regarding the characteristics of its Mortgage Loans and,
as more particularly described herein, will agree to cure
any material breach thereof or, in the absence of such a
cure, to repurchase the affected Mortgage Loan. See
"Description of the Mortgage Pool-- Representations and
Warranties; Repurchases" herein.
Description of the
Certificates................... The Certificates will be issued pursuant to a Pooling and
Servicing Agreement, to be dated as of May 1, 1998, among
the Depositor, the Master Servicer, the Special Servicer
and the Trustee (the "Pooling and Servicing Agreement"),
and will represent in the aggregate the entire beneficial
ownership interest in a trust fund (the "Trust Fund")
consisting of the Mortgage Pool and certain related
assets.
Certificate Balances and
Notional Amount................ Upon initial issuance, and in each case subject to a
permitted variance of plus or minus 5.0%, the respective
Classes of Sequential Pay Certificates will have the
Certificate Balances set forth in the table at the
beginning of this Summary.
The "Certificate Balance" of any Class of Sequential Pay
Certificates outstanding at any time represents the
maximum amount that the holders thereof are entitled to
receive as distributions allocable to principal from the
cash flow on the Mortgage Loans and other assets in the
Trust Fund. As more particularly described herein, the
Certificate Balance of a Class of Sequential Pay
Certificates will be reduced on each Distribution Date by
any distributions of principal actually made on such Class
of Certificates on such Distribution Date, and further by
any losses on the Mortgage Loans (herein referred to as
"Realized Losses") and certain Trust Fund expenses (herein
referred to as "Additional Trust Fund Expenses") actually
allocated to such Class of Certificates on such
Distribution Date.
The Class IO Certificates will not have a Certificate
Balance, but will represent the right to receive
distributions of interest in an amount equal to the
aggregate interest accrued on the notional amount of each
of the Class IO Components, as described herein. The Class
IO Certificates will have separate components (each a
"Class IO Component"), one corresponding to each Class of
Sequential Pay Certificates. Each Class IO Component will
have the same letter and/or numerical designation as the
corresponding Class of Sequential Pay Certificates. The
notional amount of each Class IO Component will equal the
Certificate Balance of the corresponding Class of
Sequential Pay Certificates outstanding from time to time.
On the Closing Date, the aggregate of the notional amounts
of all the Class IO Components will equal approximately
$3,475,264,083, which amount will equal the Initial Pool
Balance. References herein to the "notional amount" of the
Class IO Certificates shall mean the aggregate of the
notional amounts of all the Class IO Components. See
"Description of the Certificates--Certificate Balances and
Notional Amount" herein.
</TABLE>
S-15
<PAGE>
<TABLE>
<S> <C>
The REMIC Residual Certificates will not have Certificate
Balances or notional amounts, but will represent the right
to receive certain limited amounts not otherwise payable
on the REMIC Regular Certificates.
Pass-Through Rates.............. The Pass-Through Rate applicable to each Class of Offered
Certificates (other than Class IO Certificates) for each
Distribution Date is fixed at the respective rate per
annum set forth with respect to such Class in the table at
the beginning of this Summary. The Pass-Through Rate
applicable to each Class of the Private Certificates
(other than the REMIC Residual Certificates) for each Dis-
tribution Date is the lesser of (a) the respective rate
per annum set forth in respect of such Class in the table
at the beginning of this Summary and (b) the Weighted
Average Net Mortgage Rate for such Distribution Date. The
Pass-Through Rate applicable to each Class IO Component
for any Distribution Date will be equal to the Weighted
Average Net Mortgage Rate for such Distribution Date minus
the Pass-Through Rate then applicable to the corresponding
Class of Sequential Pay Certificates. The REMIC Residual
Certificates will not bear interest.
The "Weighted Average Net Mortgage Rate" for each
Distribution Date is the weighted average of the Net
Mortgage Rates for the Mortgage Loans as of the
commencement of the related Collection Period (as defined
herein), weighted on the basis of their respective Stated
Principal Balances outstanding immediately prior to such
Distribution Date. The "Net Mortgage Rate" for each
Mortgage Loan will generally equal (x) the Mortgage Rate
in effect for such Mortgage Loan as of the Cut-off Date,
minus (y) the applicable Administrative Cost Rate (as
defined herein) for such Mortgage Loan; provided that for
each Mortgage Loan that does not accrue interest on the
basis of a 360-day year consisting of twelve 30-day months
(which is the basis on which interest accrues in respect
of the REMIC Regular Certificates), then, solely for the
purposes of calculating the Weighted Average Net Mortgage
Rate, the Mortgage Rate referred to in clause (x) will, to
the extent appropriate, be adjusted from accrual period to
accrual period to compensate for such difference,
including any adjustment to each Interest Reserve Loan (as
defined herein). See "Description of the Certifi-
cates--Pass-Through Rates" herein. The "Stated Principal
Balance" of each Mortgage Loan outstanding at any time
represents the principal balance of such Mortgage Loan
ultimately due and payable thereon and will generally
equal the Cut-off Date Balance thereof, reduced on each
Distribution Date (to not less than zero) by (i) any
payments or other collections (or advances in lieu
thereof) of principal of such Mortgage Loan that are due
or received, as the case may be, during the related
Collection Period (as defined herein) and distributed on
the Certificates on such date and (ii) the principal
portion of any Realized Loss incurred in respect of such
Mortgage Loan during the related Collection Period. See
"Description of the Certificates--Pass-Through Rates"
herein. Notwithstanding the foregoing, if any Mortgage
Loan is
</TABLE>
S-16
<PAGE>
<TABLE>
<S> <C>
paid in full, liquidated or otherwise removed from the
Trust Fund, commencing on the first Distribution Date
following the Collection Period during which such event
occurred, the Stated Principal Balance of such Mortgage
Loan will be zero.
Distributions................... Distributions on the Certificates will be made by the
Trustee, to the extent of available funds, on the 18th day
of each month or, if any such 18th day is not a business
day, then on the next succeeding business day, commencing
June 18, 1998 (each, a "Distribution Date"). The total of
all payments or other collections (or advances in lieu
thereof) on or in respect of the Mortgage Loans (other
than Prepayment Premiums, Yield Maintenance Charges and
Additional Interest, which are separately distributable in
respect of the Certificates) that are available for
distribution to Certificateholders on any Distribution
Date (after deducting certain fees and expenses payable as
set forth in the Pooling and Servicing Agreement) is
herein referred to as the "Available Distribution Amount"
for such date. See "Description of the
Certificates--Distributions--The Available Distribution
Amount" herein.
On each Distribution Date, the Trustee will (except as
otherwise described under "Description of the
Certificates-- Termination" herein) apply the Available
Distribution Amount for such date for the following
purposes and in the following order of priority, in each
case to the extent of remaining available funds:
(1) to distributions of interest to the holders of the
Class A-1, Class A-2 and Class IO Certificates (in each
case, so long as any such Class remains outstanding),
pro rata, in accordance with the respective amounts of
Distributable Certificate Interest (as defined herein)
distributable on such Classes of Certificates on such
Distribution Date, in an amount equal to all
Distributable Certificate Interest in respect of each
such Class of Certificates for such Distribution Date
and, to the extent not previously paid, for all prior
Distribution Dates;
(2) to distributions of principal to the holders of the
Class A-1 Certificates in an amount (not to exceed the
then outstanding Certificate Balance of such Class of
Certificates) equal to the Principal Distribution
Amount (as defined herein) for such Distribution Date;
(3) after the Class A-1 Certificates have been retired, to
distributions of principal to the holders of the Class A-2
Certificates in an amount (not to exceed the then
outstanding Certificate Balance of such Class of
Certificates) equal to the Principal Distribution
Amount for such Distribution Date, less any portion
thereof distributed in respect of the Class A-1
Certificates;
(4) to distributions to the holders of the Class A-1 and
Class A-2 Certificates, PRO RATA, in accordance with the
respective amounts of Realized Losses and Additional
Trust Fund Expenses, if any, previously allocated to
such Classes of Certificates and for which no
reimbursement has previously been
</TABLE>
S-17
<PAGE>
<TABLE>
<S> <C>
received, to reimburse such holders for such Realized
Losses and Additional Trust Fund Expenses, if any;
(5) to distributions of interest to the holders of the
Class B Certificates in an amount equal to all
Distributable Certificate Interest in respect of such
Class of Certificates for such Distribution Date and,
to the extent not previously paid, for all prior
Distribution Dates;
(6) after the Class A-1 and Class A-2 Certificates have
been retired, to distributions of principal to the holders
of the Class B Certificates in an amount (not to
exceed the then outstanding Certificate Balance of
such Class of Certificates) equal to the Principal
Distribution Amount for such Distribution Date, less
any portion thereof distributed in respect of the
Class A-1 and/or Class A-2 Certificates;
(7) to distributions to the holders of the Class B
Certificates to reimburse such holders for all Realized
Losses and Additional Trust Fund Expenses, if any,
previously allocated to such Class of Certificates and
for which no reimbursement has previously been
received;
(8) to distributions of interest to the holders of the
Class C Certificates in an amount equal to all
Distributable Certificate Interest in respect of such
Class of Certificates for such Distribution Date and,
to the extent not previously paid, for all prior
Distribution Dates;
(9) after the Class A-1, Class A-2 and Class B
Certificates have been retired, to distributions of
principal to the holders of the Class C Certificates
in an amount (not to exceed the then outstanding
Certificate Balance of such Class of Certificates)
equal to the Principal Distribution Amount for such
Distribution Date, less any portion thereof
distributed in respect of the Class A-1, Class A-2
and/or Class B Certificates;
(10) to distributions to the holders of the Class C
Certificates to reimburse such holders for all Realized
Losses and Additional Trust Fund Expenses, if any,
previously allocated to such Class of Certificates
and for which no reimbursement has previously been
received;
(11) to distributions of interest to the holders of the
Class D Certificates in an amount equal to all
Distributable Certificate Interest in respect of such
Class of Certificates for such Distribution Date and,
to the extent not previously paid, for all prior
Distribution Dates;
(12) after the Class A-1, Class A-2, Class B and Class C
Certificates have been retired, to distributions of
principal to the holders of the Class D Certificates
in an amount (not to exceed the then outstanding
Certificate Balance of such Class of Certificates)
equal to the Principal Distribution Amount for such
Distribution Date, less any portion thereof distrib-
uted in respect of the Class A-1, Class A-2, Class B
and/or Class C Certificates;
</TABLE>
S-18
<PAGE>
<TABLE>
<S> <C>
(13) to distributions to the holders of the Class D
Certificates to reimburse such holders for all Realized
Losses and Additional Trust Fund Expenses, if any,
previously allocated to such Class of Certificates
and for which no reimbursement has previously been
received;
(14) to distributions of interest to the holders of the
Class E Certificates in an amount equal to all
Distributable Certificate Interest in respect of such
Class of Certificates for such Distribution Date and,
to the extent not previously paid, for all prior
Distribution Dates;
(15) after the Class A-1, Class A-2, Class B, Class C and
Class D Certificates have been retired, to distributions
of principal to the holders of the Class E
Certificates in an amount (not to exceed the then
outstanding Certificate Balance of such Class of
Certificates) equal to the Principal Distribution
Amount for such Distribution Date, less any portion
thereof distributed in respect of the Class A-1,
Class A-2, Class B, Class C and/or Class D
Certificates;
(16) to distributions to the holders of the Class E
Certificates to reimburse such holders for all Realized
Losses and Additional Trust Fund Expenses, if any,
previously allocated to such Class of Certificates
and for which no reimbursement has previously been
received; and
(17) to distributions to the holders of the respective
Classes of Private Certificates (other than the REMIC
Residual Certificates, which are not expected to
receive distributions) as described herein (provided
that no distributions of principal will be made in
respect of any Class of Private Certificates until
the aggregate Certificate Balance of the Class A-1,
Class A-2, Class B, Class C, Class D and Class E
Certificates has been reduced to zero). See
"Description of the Certificates--
Distributions--Application of the Available
Distribution Amount" herein;
provided that, on each Distribution Date, if any, after
the aggregate of the Certificate Balances of the
Subordinate Certificates (as defined herein) has been
reduced to zero prior to retirement of the Class A
Certificates as a result of the allocation of Realized
Losses and Additional Trust Fund Expenses, and in any
event on the final Distribution Date in connection with a
termination of the Trust Fund (see "Description of the
Certificates--Termination" herein), the payments of
principal to be made as contemplated by clauses (2) and
(3) above with respect to the Class A Certificates, will
be so made to the holders of the respective Classes of
such Certificates, up to an amount equal to, and PRO RATA
as between such Classes in accordance with, the respective
then outstanding Certificate Balances of such Classes of
Certificates, and without regard to the Principal
Distribution Amount for such date.
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The "Distributable Certificate Interest" in respect of any
Class of Sequential Pay Certificates for any Distribution
Date will generally equal one month's interest at the
applicable Pass-Through Rate accrued on the Certificate
Balance of such Class of Certificates outstanding
immediately prior to such Distribution Date, reduced (to
not less than zero) by such Class' allocable share (in
each case, calculated as described herein) of any Net
Aggregate Prepayment Interest Shortfall (as described
herein) for such Distribution Date. The "Distributable
Certificate Interest" in respect of the Class IO
Certificates for any Distribution Date will generally
equal the aggregate of one month's interest accrued at the
applicable Pass- Through Rate on the notional amount of
each Class IO Component outstanding immediately prior to
such Distribution Date, reduced (to not less than zero) by
such Class' allocable share (calculated as described
herein) of any Net Aggregate Prepayment Interest Shortfall
for such Distribution Date. Interest payable on the REMIC
Regular Certificates will be calculated on a 30/360 basis
(as defined herein). See "Servicing of the Mortgage
Loans-- Servicing and Other Compensation and Payment of
Expenses" and "Description of the
Certificates--Distributions--Distributable Certificate
Interest" herein.
The "Principal Distribution Amount" for any Distribution
Date will generally equal the aggregate of the following
(without duplication): (a) the aggregate of the principal
portions of all Scheduled Payments (other than Balloon
Payments) and the principal portion of any Assumed
Scheduled Payments (as defined herein) due or deemed due
on or in respect of the Mortgage Loans for their
respective Due Dates (as defined herein) occurring during
the related Collection Period; (b) the aggregate of all
principal prepayments received on the Mortgage Loans
during the related Collection Period; (c) with respect to
any Mortgage Loan as to which the related stated maturity
date occurred during or prior to the related Collection
Period, any payment of principal made by or on behalf of
the related borrower during the related Collection Period
(including any Balloon Payment), net of any portion of
such payment that represents a recovery of the principal
portion of any Scheduled Payment (other than a Balloon
Payment) due or the principal portion of any Assumed
Scheduled Payment deemed due, in respect of such Mortgage
Loan on a Due Date during or prior to the related
Collection Period and not previously recovered; (d) the
aggregate of all liquidation proceeds, insurance proceeds,
condemnation awards, proceeds of Mortgage Loan
repurchases, and to the extent not otherwise included in
clauses (a), (b) or (c) above, payments and other amounts
that were received on or in respect of the Mortgage Loans
during the related Collection Period and that were
identified and applied by the Master Servicer as
recoveries of principal, in each case net of any portion
of such amounts that represents a recovery of the
principal portion of any Scheduled Payment (other than a
Balloon Payment) due or of the principal portion of any
Assumed Scheduled Payment deemed due, in
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respect of the related Mortgage Loan on a Due Date during
or prior to the related Collection Period and not
previously recovered; and (e) for each Distribution Date
after the initial Distribution Date, the excess, if any,
of the Principal Distribution Amount for the immediately
preceding Distribution Date, over the aggregate
distributions of principal made on the Certificates on
such immediately preceding Distribution Date.
The "Scheduled Payment" due on any Mortgage Loan on any
related Due Date is the amount of the Monthly Payment that
is or would have been, as the case may be, due thereon on
such date, without regard to any waiver, modification or
amendment granted or agreed to by the Special Servicer or
otherwise resulting from a bankruptcy or similar
proceeding involving the related borrower, and assuming
that each prior Scheduled Payment has been timely made.
The "Assumed Scheduled Payment" is an amount deemed due
(i) on a Balloon Loan that is delinquent in respect of its
Balloon Payment beyond the first Determination Date (as
defined herein) after its stated maturity date and (ii) on
each REO Mortgage Loan (as defined herein). The Assumed
Scheduled Payment deemed due on any such Balloon Loan on
its stated maturity date and on each successive related
Due Date that it remains or is deemed to remain
outstanding will equal the Scheduled Payment that would
have been due thereon on such date if the related Balloon
Payment had not come due but rather such Mortgage Loan had
continued to amortize in accordance with such loan's
amortization schedule, if any, in effect as of the Closing
Date. The Assumed Scheduled Payment deemed due on any REO
Mortgage Loan on each Due Date that the related REO
Property (as defined herein) remains part of the Trust
Fund will equal the Scheduled Payment that would have been
due in respect of such predecessor Mortgage Loan on such
Due Date had it remained outstanding (or, if such Mortgage
Loan was a Balloon Loan and such Due Date coincides with
or follows what had been its stated maturity date, the
Assumed Scheduled Payment that would have been deemed due
in respect of such Mortgage Loan on such Due Date had it
remained outstanding). The "Determination Date" will be
the 10th day of each month (or, if not a business day, the
next preceding business day). See "Description of the
Certificates--Distributions--Principal Distribution
Amount" herein.
Reimbursements of previously allocated Realized Losses and
Additional Trust Fund Expenses will not constitute
distributions of principal for any purpose and will not
result in an additional reduction in the Certificate
Balance of the Class of Certificates in respect of which
any such reimbursement is made.
The holders of the Certificates may also receive portions
of any Prepayment Premiums and Yield Maintenance Charges
to the extent described under "Description of the
Certificates--Distributions--Allocation of Prepayment
Premiums and Yield Maintenance Charges" herein. Such
distributions will be in addition to any
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distributions of interest or principal made to such
holders from the Available Distribution Amount on each
Distribution Date.
If and to the extent collected, Additional Interest (net
of any Principal Recovery Fees payable therefrom) will be
distributed, pro rata (based on their respective initial
Certificate Balances), among all the Classes of Sequential
Pay Certificates. There can be no assurance if and to what
extent Additional Interest will be collected on the ARD
Loans, if at all.
P&I Advances.................... Subject to a recoverability determination, as described
herein, and further subject to the reduced advancing
obligations in respect of certain Required Appraisal Loans
(as defined herein) and certain Mortgage Loans as to which
the Monthly Payment has been reduced as part of a
modification or otherwise, the Master Servicer will be
required to make advances (each, a "P&I Advance") with
respect to each Distribution Date in an amount that is
generally equal to the aggregate of all Scheduled Payments
(other than Balloon Payments) and any Assumed Scheduled
Payments, net of related Servicing Fees and any related
Principal Recovery Fees (each as defined herein), due or
deemed due, as the case may be, on or in respect of the
Mortgage Loans during the related Collection Period, in
each case to the extent that such amount was not paid by
or on behalf of the related borrower or otherwise
collected as of the close of business on the last day of
the related Collection Period. Pursuant to the terms of
the Pooling and Servicing Agreement, if the Master
Servicer fails to make a required P&I Advance, the Trustee
shall then be obligated to make such P&I Advance, in such
case subject to a recoverability determination, as
described herein.
As more fully described herein, the Master Servicer (or
the Trustee) will be entitled to interest on any P&I
Advance made by it, and each of the Master Servicer, the
Special Servicer and the Trustee will be entitled to
interest on certain reimbursable servicing expenses
incurred by any of them. Such interest will accrue from
the date any such P&I Advance is made or such servicing
expense is incurred at a rate per annum equal to the
"prime rate" published in the "Money Rates" section of THE
WALL STREET JOURNAL, as such "prime rate" may change from
time to time (the "Reimbursement Rate"); and such interest
will be compounded annually and will be paid,
contemporaneously with the reimbursement of such P&I
Advance or servicing expense, out of general collections
on the Mortgage Pool then on deposit in the Certificate
Account. See "Description of the Certificates--P&I
Advances" herein and "Description of the
Certificates--Advances in Respect of Delinquencies" and
"Description of the Pooling Agreements--Certificate
Account" in the Prospectus.
Compensating Interest Payments To the extent of its servicing compensation for the
related Collection Period, including Prepayment Interest
Excesses (as defined below) received during such
Collection Period, the Master Servicer
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is required to make a non-reimbursable payment (a
"Compensating Interest Payment") with respect to each
Distribution Date to cover the aggregate of any Prepayment
Interest Shortfalls incurred during such Collection
Period. A "Prepayment Interest Shortfall" is a shortfall
in the collection of a full month's interest (net of the
related Master Servicing Fee, Additional Servicing Fee
and, if applicable, Additional Interest) and without
regard to any Prepayment Premium or Yield Maintenance
Charge actually collected) on any Mortgage Loan by reason
of a full or partial principal prepayment made prior to
its Due Date in any Collection Period. A "Prepayment
Interest Excess" is a payment of interest (net of the
related Master Servicing Fee, Additional Servicing Fee
and, if applicable, Additional Interest) made in
connection with any full or partial prepayment of a
Mortgage Loan after its Due Date in any Collection Period,
which payment of interest is intended to cover the period
on and after such Due Date (exclusive of any Prepayment
Premium or Yield Maintenance Charge actually collected).
The "Net Aggregate Prepayment Interest Shortfall" for any
Distribution Date will be the amount, if any, by which (a)
the aggregate of any Prepayment Interest Shortfalls
incurred during the related Collection Period exceeds (b)
any Compensating Interest Payment made by the Master
Servicer with respect to such Distribution Date. See
"Servicing of the Mortgage Loans-- Servicing and Other
Compensation and Payment of Expenses" and "Description of
the Certificates--Distributions-- Distributable
Certificate Interest" herein.
Subordination; Allocation of
Losses and Certain Expenses... The rights of holders of the Class B, Class C, Class D,
Class E and the Private Certificates (collectively, the
"Subordinate Certificates"), to receive distributions of
amounts collected or advanced on the Mortgage Loans will,
in each case, be subordinated, to the extent described
herein, to the rights of holders of the Class A and Class
IO Certificates (collectively, the "Senior Certificates")
and each other such Class of Subordinate Certificates, if
any, with an earlier alphabetical Class designation. This
subordination is intended to enhance the likelihood of
timely receipt by the holders of the Senior Certificates
of the full amount of Distributable Certificate Interest
payable in respect of such Classes of Certificates on each
Distribution Date, and the ultimate receipt by the holders
of each Class of the Class A Certificates of principal
equal to the entire related Certificate Balance.
Similarly, but to decreasing degrees, this subordination
is also intended to enhance the likelihood of timely
receipt by the holders of the Class B, Class C, Class D
and Class E Certificates of the full amount of
Distributable Certificate Interest payable in respect of
such Classes of Certificates on each Distribution Date,
and the ultimate receipt by the holders of such
Certificates of, in the case of each such Class, principal
equal to the entire related Certificate Balance. The pro-
tection afforded to the holders of the Offered
Certificates by means of the subordination referred to
above will be accomplished by (i)
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the application of the Available Distribution Amount on
each Distribution Date in the order described above in
this Summary under "--Description of the
Certificates--Distributions" and (ii) by the allocation of
Realized Losses and Additional Trust Fund Expenses as
described below. No other form of credit support will be
available for the benefit of the holders of the Offered
Certificates.
On each Distribution Date, following all distributions on
the Certificates to be made on such date, the aggregate of
all Realized Losses and Additional Trust Fund Expenses
that have been incurred since the Cut-off Date through the
end of the related Collection Period and that have not
previously been so allocated will be allocated, subject to
the limitations described herein, in reduction of the
respective Certificate Balances of the Sequential Pay
Certificates, as follows: first, to the Private
Certificates in the order described in the Pooling and
Servicing Agreement; and then, to the Class E, Class D,
Class C and Class B Certificates, in that order, until the
Certificate Balance of each such Class has been reduced to
zero. Thereafter any additional Realized Losses and
Additional Trust Fund Expenses will be allocated, subject
to the limitations described herein, to the Class A-1 and
Class A-2 Certificates, PRO RATA, in proportion to their
outstanding Certificate Balances (in each such case, in
reduction of the related Certificate Balance). See
"Description of the Certificates--Subordination;
Allocation of Losses and Certain Expenses" herein.
Any Realized Loss or Additional Trust Fund Expenses
allocated in reduction of the Certificate Balance of any
Class of Sequential Pay Certificates will result in a
corresponding reduction in the notional amount of the
related Class IO Component.
Treatment of REO Properties..... Notwithstanding that a Mortgaged Property may be acquired
on behalf of the Certificateholders through foreclosure,
deed in lieu of foreclosure or otherwise (upon
acquisition, an "REO Property"), the related Mortgage Loan
will be treated, for purposes of determining (i)
distributions on the Certificates, (ii) allocations of
Realized Losses and Additional Trust Fund Expenses to the
Certificates and (iii) the amount of fees payable to the
Trustee, the Master Servicer and the Special Servicer
under the Pooling and Servicing Agreement, as having
remained outstanding until such REO Property is
liquidated. In connection therewith, operating revenues
and other proceeds derived from such REO Property (net of
related operating costs, including certain reimbursements
payable to the Master Servicer or the Special Servicer in
connection with the operation and disposition of such REO
Property) will be "applied" by the Master Servicer as
principal, interest and other amounts that would have been
"due" on such Mortgage Loan, and the Master Servicer will
be required to make P&I Advances in respect of such
Mortgage Loan, in all cases as if such Mortgage Loan had
remained outstanding.
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Optional Termination............ Each of the Master Servicer, the Special Servicer, the
Depositor, Lehman Brothers Inc. and the Majority
Subordinate Certificateholder (as defined herein) will
have an option to purchase all of the Mortgage Loans and
REO Properties, and thereby effect termination of the
Trust Fund and early retirement of the then outstanding
Certificates, on any Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Pool is
less than 1% of the Initial Pool Balance. See "Description
of the Certificates-- Termination" herein and in the
Prospectus.
Risk Factors.................... There are material risks associated with an investment in
the Offered Certificates. See "Risk Factors" herein and in
the Prospectus.
Certain Investment
Considerations................ The yield to maturity of a Class A-1, Class A-2, Class B,
Class C, Class D or Class E Certificate purchased at a
discount or premium will be affected by the rate of
prepayments and other unscheduled collections of principal
on or in respect of the Mortgage Loans and the allocation
thereof to reduce the principal balance of such
Certificate. An investor should consider, in the case of
any such Certificate purchased at a discount, the risk
that a slower than anticipated rate of prepayments could
result in a lower than anticipated yield and, in the case
of any such Certificate purchased at a premium, the risk
that a faster than anticipated rate of prepayments could
result in a lower than anticipated yield. IN ADDITION, THE
YIELD TO MATURITY OF THE CLASS IO CERTIFICATES WILL BE
HIGHLY SENSITIVE TO THE RATE AND TIMING OF PRINCIPAL
PAYMENTS (INCLUDING BY REASON OF PREPAYMENTS, DEFAULTS AND
LIQUIDATIONS) ON THE MORTGAGE LOANS, AND INVESTORS IN THE
CLASS IO CERTIFICATES SHOULD FULLY CONSIDER THE ASSOCIATED
RISKS, INCLUDING THE RISK THAT A RAPID RATE OF PREPAYMENTS
AND/OR LIQUIDATIONS IN RESPECT OF THE MORTGAGE LOANS COULD
RESULT IN THE FAILURE OF SUCH INVESTORS TO FULLY RECOUP
THEIR INITIAL INVESTMENTS. See "Yield and Maturity
Considerations" herein and in the Prospectus. The
allocation to any Class of any Prepayment Premium or Yield
Maintenance Charge may be insufficient to offset fully any
adverse effects on the anticipated yield to maturity
resulting from the corresponding principal prepayment. See
"Description of Certificates--Distributions--Allocation of
Prepayment Premiums and Yield Maintenance Charges" herein.
In addition, insofar as an investor's initial investment
in any Offered Certificate is returned in the form of
payments of principal thereon, there can be no assurance
that such amounts can be reinvested in comparable
alternative investments with comparable yields. Investors
in the Offered Certificates should consider that, as of
the Cut-off Date, certain of the Mortgage Loans may be
prepaid at any time and the remainder may be prepaid at
any time after the expiration of the applicable Lock-Out
Period (as defined herein), subject, in most cases, to the
payment of a Prepayment Premium or Yield Maintenance
Charge. See "Description of the Mortgage Pool--Certain
Terms and Conditions of the Mortgage Loans--
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Prepayment Provisions" herein. Accordingly, the rate of
prepayments on the Mortgage Loans is likely to be
inversely related to the level of prevailing market
interest rates (and, presumably, to the yields on
comparable alternative investments).
Material Federal Income Tax
Consequences.................. One or more separate "real estate mortgage investment
conduit" ("REMIC") elections will be made with respect to
the Trust Fund for federal income tax purposes. The assets
of the lowest tier REMIC will consist of the Mortgage
Loans, any REO Properties acquired on behalf of the
Certificateholders and the Certificate Account (see
"Description of the Pooling Agreements--Certificate
Account" in the Prospectus). For federal income tax
purposes, the REMIC Regular Certificates (or, in the case
of the Class IO Certificates, each component thereof) will
be "regular interests" in a REMIC and generally will be
treated as debt instruments of such REMIC.
The Certificates will not, and
the Certificates will, be treated as having been
issued with original issue discount for federal income tax
reporting purposes. The prepayment assumption that will be
used for purposes of computing the accrual of original
issue discount, market discount and premium, if any, for
federal income tax purposes will be equal to a CPR of 0%,
except that it is assumed that the ARD Loans pay their
respective outstanding principal balances on their related
Anticipated Repayment Dates, as described herein. However,
no representation is made that the Mortgage Loans will
prepay at that rate or at any other rate.
The Offered Certificates will be treated as "real estate
assets" within the meaning of Section 856(c)(4)(A) of the
Code. In addition, interest (including original issue
discount) on the Offered Certificates will be interest
described in Section 856(c)(3)(B) of the Code. However,
the Offered Certificates will generally only be considered
assets described in Section 7701(a)(19)(C) of the Code to
the extent that the Mortgage Loans are secured by
residential property and, accordingly, an investment in
the Offered Certificates may not be suitable for certain
thrift institutions.
For further information regarding the federal income tax
consequences of investing in the Offered Certificates, see
"Material Federal Income Tax Consequences" herein and in
the Prospectus.
ERISA Considerations............ A fiduciary of any employee benefit plan or other
retirement arrangement subject to the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"), or
Section 4975 of the Code (a "Plan") should review
carefully with its legal advisors whether the purchase or
holding of Offered Certificates could give rise to a
transaction that is prohibited or is not otherwise
permitted either under ERISA or Section 4975 of the Code
or whether there exists any statutory or administrative
exemption applicable to an investment therein.
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Lehman Brothers Inc. has received from the U.S. Department
of Labor (the "DOL") an individual Prohibited Transaction
Exemption that generally exempts from the application of
certain of the prohibited transaction provisions of
Sections 406(a) and (b) and 407(a) of ERISA and the excise
taxes imposed on such prohibited transactions by Section
4975(a) and (b) of the Code, transactions relating to the
purchase, sale and holding of pass-through certificates
underwritten by Lehman Brothers Inc. provided that certain
conditions are satisfied.
The Depositor expects that the Prohibited Transaction
Exemption will generally apply to the Senior Certificates,
but it will not apply to the other Classes of Offered
Certificates. ACCORDINGLY, EXCEPT AS DESCRIBED HEREIN, THE
CLASS B, CLASS C, CLASS D AND CLASS E CERTIFICATES SHOULD
NOT BE ACQUIRED BY A PLAN OR ANY INVESTOR HOLDING ASSETS
OF A PLAN. PURCHASERS USING INSURANCE COMPANY GENERAL
ACCOUNT FUNDS TO EFFECT SUCH PURCHASE SHOULD CONSIDER THE
AVAILABILITY OF PROHIBITED TRANSACTION CLASS EXEMPTION
95-60 (60 FED. REG. 35925, JULY 12, 1995) ISSUED BY THE
DOL. SEE "ERISA CONSIDERATIONS" HEREIN AND IN THE
PROSPECTUS.
Ratings......................... It is a condition of their issuance that the Offered
Certificates receive the ratings from the Rating Agencies
(as defined on the cover page of this Prospectus
Supplement, the "Rating Agencies") set forth on the cover
page of this Prospectus Supplement. The ratings on the
Offered Certificates address the likelihood of the timely
receipt by holders thereof of all distributions of
interest to which they are entitled and, except in the
case of the Class IO Certificates, distributions of
principal by the Rated Final Distribution Date set forth
on the cover page of this Prospectus Supplement. A
security rating is not a recommendation to buy, sell or
hold securities and may be subject to revision or
withdrawal at any time by the assigning rating
organization. A security rating does not represent any
assessment of (i) the likelihood or frequency of principal
prepayments or default interest on the Mortgage Loans,
(ii) the degree to which such prepayments might differ
from those originally anticipated or (iii) whether and to
what extent Prepayment Premiums and Yield Maintenance
Charges will be received. Also, a security rating does not
represent any assessment of the yield to maturity that
investors may experience or the possibility that the
holders of the Class IO Certificates might not fully
recover their investment in the event of rapid prepayments
of the Mortgage Loans (including both voluntary and
involuntary prepayments). Therefore, such security rating
addresses credit risk and not the risk of prepayment. As
described herein, the amounts payable with respect to the
Class IO Certificates consist only of interest. The Class
IO Certificates' notional amount upon which interest is
calculated is reduced by the allocation of Realized
Losses, Additional Trust Fund Expenses and prepayments,
whether voluntary or involuntary, in reduction of the
Certificate Balances of the Sequential
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Pay Certificates. The rating does not address the timing
or magnitude of reductions of the notional amounts of the
Class IO Components, but only the obligation to pay
interest timely on such notional amounts as reduced from
time to time. Accordingly, the ratings of the Class IO
Certificates should be evaluated independently from
similar ratings on other types of securities. A down-
grade, qualification or withdrawal of a rating with
respect to the Enhancement Insurer, a provider of a
residual value insurance policy, a Tenant or a Guarantor
may adversely affect the ratings of the Offered
Certificates. See "Ratings" herein and "Risk Factors--
Limited Nature of Ratings" in the Prospectus.
Legal Investment................ Any Offered Certificates rated in the category of "AAA" or
"AA" (or the equivalent) by at least one Rating Agency
will constitute "mortgage related securities" pursuant to
the Secondary Mortgage Market Enhancement Act of 1984, as
amended ("SMMEA"). All other Offered Certificates (the
"Non-SMMEA Certificates") will NOT constitute "mortgage
related securities" for purposes of SMMEA. As a result,
the appropriate characterization of the Non-SMMEA
Certificates under various legal investment restrictions,
and thus the ability of investors subject to these
restrictions to purchase the Non-SMMEA Certificates of any
Class, may be subject to significant interpretative
uncertainties. In addition, institutions whose investment
activities are subject to review by federal or state
regulatory authorities may be or may become subject to
restrictions on the investment by such institutions in
certain forms of mortgage backed securities. Investors
should consult their own legal advisors to determine
whether and to what extent the Offered Certificates
constitute legal investments for them. See "Legal
Investment" herein and in the Prospectus.
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RISK FACTORS
PROSPECTIVE PURCHASERS OF THE OFFERED CERTIFICATES OF ANY CLASS SHOULD
CONSIDER, AMONG OTHER THINGS, THE FOLLOWING RISK FACTORS (AS WELL AS THE RISK
FACTORS SET FORTH UNDER "RISK FACTORS" IN THE PROSPECTUS) IN CONNECTION WITH AN
INVESTMENT THEREIN. ADDITIONAL RISK FACTORS ARE SET FORTH ELSEWHERE IN THIS
PROSPECTUS SUPPLEMENT UNDER SEPARATE HEADINGS IN CONNECTION WITH DISCUSSIONS
REGARDING PARTICULAR ASPECTS OF THE MORTGAGE LOANS OR THE CERTIFICATES.
CERTAIN RISK FACTORS ASSOCIATED WITH THE CERTIFICATES
LIMITED LIQUIDITY FOR OFFERED CERTIFICATES. There is currently no secondary
market for the Offered Certificates. While each of the Underwriters currently
intends to make a secondary market in the Offered Certificates, neither is under
any obligation to do so. Accordingly, there can be no assurance that a secondary
market for the Offered Certificates will develop. Moreover, if a secondary
market does develop, there can be no assurance that it will provide holders of
the Offered Certificates with liquidity of investment or that it will continue
for the life of the Offered Certificates. Any such secondary market may provide
less liquidity to investors than any comparable market for securities that
evidence, for example, interests solely in single-family mortgage loans. The
Certificates will not be listed on any securities exchange.
CERTAIN YIELD AND MATURITY CONSIDERATIONS. The yield on the Class IO
Certificates and any other Classes of Offered Certificates that are purchased at
a discount or premium will be affected by the rate, amount and timing of
principal payments applied or otherwise resulting in reduction of the
Certificate Balance of such Class of Certificates (or, in the case of the Class
IO Certificates, the notional amount of any Class IO Component), which in turn
will be affected by (i) the rate, amount and timing of principal payments and
collections on the Mortgage Loans, particularly unscheduled payments or
collections in the form of voluntary prepayments of principal or unscheduled
recoveries of principal due to defaults, casualties or condemnations whether
before or after the scheduled maturity date of the related Mortgage Loans, and
(ii) the order of priority of distributions of principal in respect of the
Sequential Pay Certificates. The rate and timing of unscheduled payments and
collections of principal on the Mortgage Loans is impossible to accurately
predict and will be affected by a variety of factors, including, without
limitation, the level of prevailing interest rates, restrictions on voluntary
prepayments contained in the Mortgage Notes, the availability of mortgage credit
and other economic, demographic, geographic, tax and legal factors. In general,
however, if prevailing interest rates fall significantly below the Mortgage
Rates on the Mortgage Loans, borrowers under the Mortgage Loans will have an
increased incentive to prepay. As described herein, the Principal Distribution
Amount for each Distribution Date will be distributable entirely in reduction of
the Certificate Balance of the Class A-1 and Class A-2 Certificates, in that
order (unless the aggregate Certificate Balance of the Subordinate Certificates
has been reduced to zero), in each such case until the related Certificate
Balance thereof is reduced to zero, and will thereafter be distributable in its
entirety in respect of each remaining Class of Sequential Pay Certificates,
sequentially in alphabetical order of Class designation, until the related
Certificate Balance of each such Class is, in turn, reduced to zero. See
"Description of the Certificates--Distributions--Application of the Available
Distribution Amount" herein. Accordingly, the actual rate of principal payments
on the Mortgage Loans may have different effects on the yields of the respective
Classes of Offered Certificates. Any payment in reduction of the Certificate
Balance of a Class of Sequential Pay Certificates will also result in a
corresponding reduction in the notional amount of the related Class IO
Component. Thus, the yield on the Class IO Certificates will be extremely
sensitive to the rate and timing of principal payments on the Mortgage Loans,
and the more quickly the notional amount of any Class IO Component is reduced,
the greater will be the negative effect on their yields, to the extent such
effect is not offset by distributions of a portion of any applicable Prepayment
Premiums or Yield Maintenance Charges to the holders thereof, as described under
"Description of the Certificates--Distributions--Allocation of Prepayment
Premiums and Yield Maintenance Charges" herein. In addition, the Mortgage Loans
may not require the payment of
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<PAGE>
Prepayment Premiums or Yield Maintenance Charges in the event of involuntary
prepayments resulting from casualty or condemnation. Furthermore, in the event
of a liquidation of a Mortgage Loan following a default, the liquidation
proceeds may be insufficient to cover any Prepayment Premium or Yield
Maintenance Charge, together with all principal, interest and other sums that
may be due and owing in respect of such Mortgage Loan, or the obligation to pay
such Prepayment Premium or Yield Maintenance Charge under those circumstances
may be unenforceable. ACCORDINGLY, PROSPECTIVE INVESTORS IN THE CLASS IO
CERTIFICATES SHOULD CONSIDER THE ASSOCIATED RISKS, INCLUDING THE RISK THAT A
RAPID RATE OF PREPAYMENTS ON THE MORTGAGE LOANS COULD RESULT IN THE FAILURE OF
SUCH INVESTORS TO FULLY RECOUP THEIR INITIAL INVESTMENTS.
The yield on any Offered Certificate also will be affected by the rate,
amount and timing of losses attributable to defaults on the Mortgage Loans, the
severity of such losses and the extent to which such losses and related expenses
are applied in reduction of the actual or notional principal amount of such
Certificate or otherwise reduce the amount of funds available for distribution
to the holder of such Certificate. To the extent described herein, the Private
Certificates are subordinate in right and time of payment to the Offered
Certificates and will bear shortfalls in collections and losses incurred in
respect of the Mortgage Loans prior to the Offered Certificates; and the Class
B, Class C, Class D and Class E Certificates are subordinate in right and time
of payment to the Senior Certificates and will bear such shortfalls and losses
prior to the Senior Certificates, in reverse alphabetical order of Class
designation. The Class A-1 and Class A-2 Certificates will bear shortfalls in
collections and losses incurred in respect of the Mortgage Loans pro rata, in
proportion to their respective outstanding Certificate Balances. However, until
the first Distribution Date after the aggregate of the Certificate Balances of
the Subordinate Certificates has been reduced to zero, the Class A-2
Certificates will receive principal payments only after the Certificate Balance
of the Class A-1 Certificates has been reduced to zero. As a result, the
shortfalls and losses allocated to the Class A Certificates will have a greater
effect on the Class A-2 Certificates than on the Class A-1 Certificates. Any
Realized Loss or Additional Trust Fund Expenses allocated in reduction of the
Certificate Balance of any Class of Sequential Pay Certificates will result in a
corresponding reduction in the notional amount of the corresponding Class IO
Component. See "Description of the Certificates--Distributions" and
"--Subordination; Allocation of Losses and Certain Expenses" herein and "Yield
and Maturity Considerations" herein and in the Prospectus.
The Pass-Through Rate applicable to each Class IO Component will be variable
and will be equal to the Weighted Average Net Mortgage Rate from time to time
minus the Pass-Through Rate on the Class of Sequential Pay Certificates related
to such Class IO Component. Accordingly, the Pass-Through Rate applicable to
each such Class IO Component and, correspondingly, the yield on the Class IO
Certificates will be sensitive to changes in the relative composition of the
Mortgage Pool as a result of scheduled amortization, voluntary prepayments and
liquidations. See "Description of the Certificates--Distributions" and
"Subordination; Allocation of Losses and Certain Expenses" herein and "Yield and
Maturity Considerations" herein and in the Prospectus.
POTENTIAL CONFLICTS OF INTEREST. Subject to certain conditions described
herein, the Pooling and Servicing Agreement will permit the holder (or holders)
of the majority of the Voting Rights (as defined herein) allocated to the Class
of Sequential Pay Certificates that has the latest alphabetical Class
designation and that has a Certificate Balance that is greater than 25% of its
original Certificate Balance (or, if no Class of Sequential Pay Certificates has
a Certificate Balance that is greater than 25% of its original Certificate
Balance, the then outstanding Class of Sequential Pay Certificates with the
latest alphabetical Class designation) to replace the Special Servicer or any
successor thereafter appointed and to select the Controlling Class
Representative from whom the Special Servicer will seek advice and approval and
take direction under certain circumstances, as described herein. The replacement
Special Servicer may be a Certificateholder of such Class or an affiliate of any
such Certificateholder. As described herein, any such Special Servicer will have
considerable latitude in determining to liquidate or modify defaulted Mortgage
Loans. In addition, the Special Servicer will perform certain servicing
functions with respect to the Mortgage Loans, pursuant to the Pooling and
Servicing Agreement. See "Servicing of the Mortgage
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<PAGE>
Loans--Modifications, Waivers and Amendments" herein. It is contemplated that
the initial Special Servicer or an affiliate thereof may purchase some or all of
the Certificates of one or more Classes of Private Certificates, including the
initial Controlling Class of Sequential Pay Certificates, and the Special
Servicer or an affiliate thereof is not prohibited from purchasing the
Certificates of any other Class. Although the Special Servicer will be obligated
to observe the terms of the Pooling and Servicing Agreement and will be governed
by the servicing standard described herein, it may, especially if it is itself a
Certificateholder, have interests when dealing with defaulted Mortgage Loans
that are in conflict with those of holders of Offered Certificates. For
instance, a Special Servicer that is a Certificateholder could seek to mitigate
the potential for loss to its Class from a troubled Mortgage Loan by deferring
enforcement in the hope of maximizing future proceeds. However, such action
could result in less proceeds to the Trust Fund than would have been realized if
earlier action had been taken. In connection with the servicing of the Specially
Serviced Mortgage Loans, the Special Servicer may, at the direction of the
Controlling Class Representative, take actions with respect to such Specially
Serviced Mortgage Loans that could adversely affect the holders of some or all
of the Classes of Offered Certificates. It is possible that the Controlling
Class Representative may direct the Special Servicer to take actions which
conflict with the interests of the holders of certain Classes of Offered
Certificates.
RISK OF YEAR 2000. The transition from the year 1999 to the year 2000 may
disrupt the ability of computerized systems to process information. The Master
Servicer and the Trustee are currently modifying their computer systems and
applications such that they will be year 2000 compliant by August 31, 1999. If
the Master Servicer or Trustee is unable to complete such modifications by the
year 2000, the ability of the Master Servicer or Trustee to service the Mortgage
Loans and make distributions to the Certificateholders, respectively, may be
materially and adversely affected.
CERTAIN RISK FACTORS ASSOCIATED WITH THE MORTGAGE LOANS
RISKS OF LENDING ON INCOME-PRODUCING PROPERTIES. The Mortgaged Properties
consist entirely of income-producing real estate. Lending on the security of
income-producing real estate is generally viewed as exposing a lender to a
greater risk of loss than lending on the security of single-family residences.
Income property lending typically involves larger loans than single-family
lending. In addition, and unlike loans made on the security of single family
residences, repayment of loans made on the security of income-producing real
property depends upon the ability of the related real estate project (i) to
generate income sufficient to pay operating expenses and leasing commissions, to
make necessary repairs, tenant improvements and capital improvements and to pay
debt service and (ii) in the case of loans that do not fully amortize over their
terms, to retain sufficient value to permit the borrower to pay off the loan at
maturity by sale or refinancing. A number of factors, many beyond the control of
the property owner, can affect the ability of an income-producing real estate
project to generate sufficient net operating income to pay debt service and/or
to maintain its value. Among these factors are economic conditions generally and
in the area of the project, the age, quality and design of the project and the
degree to which it competes with other projects in the area, changes or
continued weakness in specific industry segments, increases in operating costs,
the willingness and ability of the owner to provide capable property management
and maintenance and, in the case of Mortgaged Properties that are retail,
industrial/warehouse or office properties, the degree to which the project's
revenue is dependent upon a single tenant or user, a small group of tenants,
tenants concentrated in a particular business or industry and the competition to
any such tenants. If leases are not renewed or replaced, if tenants default
and/or if rental rates fall and/or if operating expenses increase, the
borrower's ability to repay the loan may be impaired and the resale value of the
property, which is substantially dependent upon the property's ability to
generate income, may decline. In addition, there are other factors, including
changes in zoning or tax laws, the availability of credit for refinancing, and
changes in interest rate levels that may adversely affect the value of a project
(and thus the borrower's ability to sell or refinance) without necessarily
affecting the ability to generate current income.
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<PAGE>
In addition, particular types of income properties are exposed to particular
risks. For instance, office properties may require their owners to expend
significant amounts of cash to pay for general capital improvements, tenant
improvements and costs of re-leasing space. Also, office properties that are not
equipped to accommodate the needs of modern businesses may become functionally
obsolete and thus non-competitive. Multifamily projects are part of a market
that, in general, is characterized by low barriers to entry. Thus, a particular
apartment market with historically low vacancies could experience substantial
new construction, and a resultant oversupply of units, in a relatively short
period of time. Since multifamily apartment units are typically leased on a
short-term basis, the tenants who reside in a particular project within such a
market may easily move to alternative projects with more desirable amenities or
locations. The rent limitations imposed on Section 42 Properties may adversely
affect the ability of the applicable borrowers to increase rents to maintain
such Mortgaged Properties in proper condition during periods of rapid inflation
or declining market value of such Mortgaged Properties. In addition, the income
restrictions on tenants imposed by Section 42 of the Code may reduce the number
of eligible tenants in such Mortgaged Properties and result in a reduction in
occupancy rates applicable thereto. See "Description of the Mortgage
Pool--Certain Terms and Conditions of the Mortgage Loans--Low Income Housing Tax
Credits" herein. Shopping centers, in general, are affected by the health of the
retail industry, which is currently undergoing a consolidation and is
experiencing changes due to the growing market share of "off-price" retailing,
and a particular shopping center may be adversely affected by the bankruptcy or
decline in drawing power of an anchor tenant, a shift in consumer demand due to
demographic changes (for example, population decreases or changes in average age
or income) and/or changes in consumer preference (for example, to discount
retailers). See "Description of the Mortgage Pool--Additional Mortgage Loan
Information--Certain Lease Matters" herein. Industrial properties may be
adversely affected by reduced demand for industrial space occasioned by a
decline in a particular industry segment (for example, a decline in defense
spending), and a particular industrial property that suited the needs of its
original tenant may be difficult to re-let to another tenant or may become
functionally obsolete relative to newer properties. See "Risk Factors--Risks
Associated with Certain Mortgage Loans and Mortgaged Properties" in the
Prospectus.
In the case of retail properties, the failure of an anchor tenant to renew
its lease, the termination of an anchor tenant's lease, the bankruptcy or
economic decline of an anchor tenant, or the cessation of the business of an
anchor at its store, notwithstanding its continued payment of rent after "going
dark", can have a particularly negative effect on the economic performance of a
shopping center property given the importance of anchor tenants in attracting
traffic to other stores within the same shopping center. In addition, the
failure of one or more major tenants, such as an anchor tenant, to operate from
its premises may entitle other tenants to rent reductions or the right to
terminate their leases. For several Mortgage Loans, the land and improvements
utilized by an anchor or other tenant are not subject to the related Mortgage.
Mortgage Loans secured by liens on residential health care facilities pose
risks not associated with loans secured by liens on other types of
income-producing real estate. Providers of long-term nursing care, assisted
living and other medical services are subject to federal and state laws that
relate to the adequacy of medical care, distribution of pharmaceuticals, rate
setting, equipment, personnel, operating policies and additions to facilities
and services and, to the extent dependent on patients whose fees are reimbursed
by private insurers, to the reimbursement policies of such insurers. The failure
of any of such borrower to maintain or renew any required license or regulatory
approval could prevent it from continuing operations at a Mortgaged Property (in
which case no revenues would be received from such property or portion thereof
requiring licensing) or, if applicable, bar it from participation in government
reimbursement programs. Furthermore, in the event of foreclosure, there can be
no assurance that the Trustee or any other purchaser at a foreclosure sale would
be entitled to the rights under such licenses and such party may have to apply
in its own right for such a license. There can be no assurance that a new
license could be obtained or that the related Mortgage Property would be
adaptable to other uses. To the extent any nursing home receives a significant
portion of its revenues from government reimbursement programs,
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<PAGE>
primarily Medicaid and Medicare, such revenue may be subject to statutory and
regulatory changes, retroactive rate adjustments, administrative rulings, policy
interpretations, delays by fiscal intermediaries and government funding
restrictions. Moreover, governmental payors have employed cost-containment
measures that limit payments to health care providers, and there are currently
under consideration various proposals in the United States Congress that could
materially change or curtail those payments. Accordingly, there can be no
assurance that payments under government reimbursement programs will, in the
future, be sufficient to fully reimburse the cost of caring for program
beneficiaries. If not, net operating income of the Mortgaged Properties that
receive substantial revenues from those sources, and consequently the ability of
the related borrowers to meet their Mortgage Loan obligations, could be
adversely affected. Under applicable federal and state laws and regulations,
including those that govern Medicare and Medicaid programs, only the provider
who actually furnished the related medical goods and services may sue for or
enforce its rights to reimbursement. Accordingly, in the event of foreclosure,
none of the Trustee, the Master Servicer, the Special Servicer or a subsequent
lessee or operator of the property would generally be entitled to obtain from
federal or state governments any outstanding reimbursement payments relating to
services furnished at the respective properties prior to such foreclosure.
Various factors, including location, quality and franchise affiliation (or
lack thereof), affect the economic viability of a hotel. Adverse economic
conditions, either local, regional or national, may limit the amount that may be
charged for a room and may result in a reduction in occupancy levels. The
construction of competing hotels or motels can have similar effects. Because
hotel rooms generally are rented for short periods of time, hotel properties
tend to respond more quickly to adverse economic conditions and competition than
do other commercial properties. The successful operation of a hotel with a
franchise affiliation may depend in part upon the strength of the franchisor,
the public perception of the franchise service mark and the continued existence
of any franchise license agreement. The transferability of a franchise license
agreement may be restricted, and a lender or other person that acquires title to
a hotel property as a result of foreclosure may be unable to succeed to the
borrower's rights under any franchise license agreement. Furthermore, the
ability of a hotel to attract customers, and some of such hotel's revenues, may
depend in large part on its having a liquor license. Such a license may not be
transferable (for example, in connection with a foreclosure).
CREDIT LEASE MORTGAGED PROPERTIES. Seventy-seven (77) of the Mortgage
Loans, or 7.3%, are Credit Lease Loans. The payment of interest and principal on
Credit Lease Loans is dependent principally on the payment by each Tenant or
guarantor of the Tenant's Credit Lease (the "Guarantor"), if any, of Monthly
Rental Payments and other payments due under the terms of its Credit Lease. A
downgrade in the credit rating of the Tenant and/or the Guarantor may have a
related adverse effect on the rating of the Offered Certificates. In addition,
because the ability of a Credit Lease to service the related Credit Lease Loan
is dependent on revenue from a single Tenant, in the event of a default under a
Credit Lease or the associated guarantee, as the case may be, the Mortgagor may
not have the ability to make required payments on such Credit Lease Loan until
the premises are re-let. If a payment default on the Credit Lease Loan occurs,
the Special Servicer may be entitled to foreclose upon or otherwise realize upon
the related Mortgaged Property to recover amounts due under the Credit Lease
Loan, and will also be entitled to pursue any available remedies against the
defaulting Tenant and any Guarantor. Other than with respect to one Credit Lease
Loan, or 0.06%, each Credit Lease Loan which is a Balloon Loan is insured to the
extent of the related Balloon Payment through a residual value insurance policy.
Pursuant to the terms of such policies, if a default occurs under such Credit
Lease Loans and no recovery is available from the related Mortgagor, the Tenant
or any Guarantor, the Special Servicer will be entitled or able to recover in
full the amount of the Balloon Payment due under such Credit Lease Loan after
the maturity date for such Credit Lease Loan. With respect to defaults other
than with respect to Balloon Payments (and defaults with respect to Balloon
Payments of the Credit Lease Loans which are Balloon Loans but do not benefit
from a residual value insurance policy), it is unlikely that the Special
Servicer will be able to recover in full the amounts then due under such Credit
Lease Loans. See "Description of the Mortgage Pool--Credit Lease Loans" herein.
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<PAGE>
FACTORS AFFECTING LEASE ENHANCEMENT POLICY PROCEEDS. With respect to each
Credit Lease Loan which is not secured by a Bond-Type Lease (as defined herein),
the Trustee is the beneficiary of a non-cancelable Lease Enhancement Policy (as
defined herein) obtained to cover certain lease termination (and abatement with
respect to losses arising out of a condemnation) events arising out of a
casualty to, or condemnation of, the related Mortgaged Property issued by Chubb
Custom Insurance Company (the "Enhancement Insurer"), which, as of the Cut-off
Date, was rated "AAA" by Standard & Poor's and "Aaa" by Moody's. Each Lease
Enhancement Policy is subject to certain limited exclusions and does not insure
interest on Credit Lease Loans for a period of greater than 75 days past the
date of the occurrence of a Casualty or Condemnation Right (each as defined
herein). The Enhancement Insurer is not required to pay amounts due under the
Credit Lease Loan other than principal and, subject to the limitation above,
accrued interest, and therefore is not required to pay any Prepayment Premium or
Yield Maintenance Charge due thereunder or any amounts the related Mortgagor is
obligated to pay thereunder as reimbursement for outstanding Servicing Advances.
Certificateholders may be adversely affected by any failure by the
Enhancement Insurer to pay under the terms of the Lease Enhancement Policies,
and any downgrade of the credit rating of the Enhancement Insurer (or the
provider of a residual value insurance policy) may adversely affect the ratings
of the Offered Certificates. See "Description of the Mortgage Pool--Credit Lease
Loans" herein.
NONRECOURSE MORTGAGE LOANS. The Mortgage Loans are not insured or
guaranteed by any governmental entity or private mortgage insurer. The Depositor
has not undertaken any evaluation of the significance of the recourse provisions
of Mortgage Loans that may permit recourse against the related borrower or
another person in the event of a default. Accordingly, investors should consider
all of the Mortgage Loans to be nonrecourse loans as to which recourse in the
case of default will be limited to the related Mortgaged Property.
ENVIRONMENTAL LAW CONSIDERATIONS. Contamination of real property may give
rise to a lien on that property to assure payment of the cost of clean-up or, in
certain circumstances, may result in liability to the lender for that cost. Such
contamination may also reduce the value of a property. A "Phase I" environmental
site assessment was performed at each of the Mortgaged Properties. See
"Description of the Mortgage Pool--Assessments of Property
Condition--Environmental and Engineering Assessments" herein.
The Pooling and Servicing Agreement requires that the Special Servicer
obtain an environmental site assessment of a Mortgaged Property prior to taking
possession of the property through foreclosure or otherwise or assuming control
of its operation. Such requirement effectively precludes enforcement of the
security for the related Mortgage Note until a satisfactory environmental site
assessment is obtained (or until any required remedial action is thereafter
taken), but will decrease the likelihood that the Trust Fund will become liable
for a material adverse environmental condition at the Mortgaged Property.
However, there can be no assurance that the requirements of the Pooling and
Servicing Agreement will effectively insulate the Trust Fund from potential
liability for a materially adverse environmental condition at any Mortgaged
Property. See "Description of the Pooling Agreements--Realization Upon Defaulted
Mortgage Loans", "Risk Factors--Environmental Risks" and "Certain Legal Aspects
of Mortgage Loans and Leases--Environmental Considerations" in the Prospectus.
BALLOON PAYMENTS. Four hundred thirty-six (436) of the Mortgage Loans, or
57.0% are Balloon Loans, which involve a greater risk to a lender than
fully-amortizing loans because the ability of a borrower to make a Balloon
Payment typically will depend upon its ability either to fully refinance the
loan or to sell the related mortgaged property at a price sufficient to permit
the borrower to make the Balloon Payment. Moreover, and whether or not losses
are ultimately sustained, any delay in the collection of a Balloon Payment that
would otherwise be distributable in respect of a Class of Offered Certificates
will likely extend the weighted average life of such Class. The ability of a
borrower to effect a refinancing or sale will be affected by a number of
factors, including the value of the related Mortgaged Property, the level of
available mortgage rates at the time of sale or refinancing, the borrower's
equity in the Mortgaged
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Property, the financial condition and operating history of the borrower and the
Mortgaged Property, tax laws, prevailing general economic conditions and the
availability of credit for loans secured by multifamily or commercial, as the
case may be, real properties generally. See "Risk Factors--Balloon Payments;
Borrower Default" in the Prospectus.
In order to maximize recoveries on defaulted Mortgage Loans, the Pooling and
Servicing Agreement permits the Special Servicer to extend and modify Mortgage
Loans that are in material default or as to which a payment default (including
the failure to make a Balloon Payment) is imminent; subject, however, to the
limitations described under "Servicing of the Mortgage Loans--Modifications,
Waivers and Amendments" herein. There can be no assurance, however, that any
such extension or modification will increase the present value of recoveries in
a given case. Any delay in collection of a Balloon Payment that would otherwise
be distributable in respect of a Class of Offered Certificates, whether such
delay is due to borrower default or to modification of the related Mortgage
Loan, will likely extend the weighted average life of such Class of Offered
Certificates. See "Yield and Maturity Considerations" herein and in the
Prospectus.
RISK OF SUBORDINATED DEBT. The Mortgaged Properties securing seven Mortgage
Loans, or 0.6%, are encumbered by subordinated debt. The existence of
subordinated debt encumbering any Mortgaged Property may increase the difficulty
of refinancing the related Mortgage Loan at maturity and the possibility that
reduced cash flow could result in deferred maintenance. Also, in the event that
the holder of the subordinated debt has filed for bankruptcy or been placed in
involuntary receivership, foreclosing on the Mortgaged Property could be
delayed. See "Certain Legal Aspects of Mortgage Loans and Leases-- Subordinate
Financing" and "--Due-on-Sale and Due-on-Encumbrance" in the Prospectus and
"Description of the Mortgage Loans--Certain Terms and Conditions of the Mortgage
Loans--Other Financings" herein.
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DESCRIPTION OF THE MORTGAGE POOL
GENERAL
The Mortgage Pool will consist of 676 conventional, fixed rate Mortgage
Loans, with an Initial Pool Balance of $3,475,264,083, which will equal the
aggregate Cut-off Date Balance of such Mortgage Loans. The Cut-off Date Balances
of the Mortgage Loans range from $408,723 to $178,378,814, and the Mortgage
Loans have an average Cut-off Date Balance of $5,140,923. ALL PERCENTAGES OF THE
MORTGAGE LOANS, OR OF ANY SPECIFIED GROUP OF MORTGAGE LOANS, REFERRED TO HEREIN
WITHOUT FURTHER DESCRIPTION ARE APPROXIMATE PERCENTAGES BY AGGREGATE CUT-OFF
DATE BALANCE. REFERENCES TO PERCENTAGES OF MORTGAGED PROPERTIES REFERRED TO
HEREIN WITHOUT FURTHER DESCRIPTION ARE REFERENCES TO THE PERCENTAGES OF THE
INITIAL POOL BALANCE REPRESENTED BY THE AGGREGATE CUT-OFF DATE BALANCE OF THE
RELATED MORTGAGE LOANS. FOR PURPOSES OF CALCULATIONS HEREIN, AS SHOWN ON ANNEX A
HERETO, EACH OF THE MORTGAGE LOANS IS DEEMED TO BE SECURED BY ONE MORTGAGED
PROPERTY, WHETHER OR NOT SUCH MORTGAGED PROPERTY IS COMPRISED OF MORE THAN ONE
PARCEL. IN THE CASE OF MORTGAGE LOANS SECURED BY MULTIPLE MORTGAGED PROPERTIES
LOCATED IN MORE THAN ONE STATE, SUCH MORTGAGED PROPERTIES ARE, FOR PURPOSES OF
CALCULATIONS HEREIN, DEEMED TO BE LOCATED ONLY IN THE STATE OF THE MORTGAGED
PROPERTY OR PROPERTIES HAVING THE HIGHEST APPRAISED VALUE. ALL NUMERICAL
INFORMATION PROVIDED HEREIN WITH RESPECT TO THE MORTGAGE LOANS IS PROVIDED ON AN
APPROXIMATE BASIS.
All of the Mortgage Loans are evidenced by a promissory note (each a
"Mortgage Note"). All of the Mortgage Loans are secured by a mortgage, deed of
trust or other similar security instrument (each a "Mortgage") that creates a
first mortgage lien on a borrower's fee simple estate (other than 15 Mortgage
Loans, or 6.1%, on the borrower's leasehold estate and with respect to seven
Mortgage Loans, or 2.5%, on both the borrower's leasehold estate and the
underlying fee simple estate) in an income-producing real property (each, a
"Mortgaged Property").
Set forth below are the number of Mortgage Loans, and the approximate
percentage of the Initial Pool Balance represented by such Mortgage Loans, that
are secured by Mortgaged Properties operated for each indicated purpose:
<TABLE>
<CAPTION>
PERCENTAGE OF
NUMBER OF INITIAL POOL
PROPERTY TYPE MORTGAGE LOANS BALANCE
- ---------------------------------------------------------------------------------- ------------------- -------------
<S> <C> <C>
Multifamily(1).................................................................... 228 31.1%
Retail(2)......................................................................... 172 27.2%
Office(3)......................................................................... 74 20.4%
Hospitality(4).................................................................... 45 6.7%
Industrial/Warehouse.............................................................. 44 3.8%
Health Care(5).................................................................... 12 1.9%
Self-Storage...................................................................... 11 0.7%
Mixed Use......................................................................... 8 0.6%
Mobile Home Park.................................................................. 5 0.4%
Credit Lease Loans(6)............................................................. 77 7.3%
</TABLE>
- ------------------------
(1) Including ten Mortgage Loans, or 0.9%, secured by properties which are
eligible to receive low-income housing tax credits pursuant to Section 42 of
the Internal Revenue Code of 1986 (the "Code" and such properties, the
"Section 42 Properties").
(2) Including 103 Mortgage Loans, or 20.1%, secured by anchored retail or
regional mall properties and 69 Mortgage Loans, or 7.1%, secured by
unanchored retail properties.
(3) Including two Mortgage Loans, or 9.6%, secured by Mortgaged Properties
triple net leased to IBM.
(4) All but four of such Mortgage Loans, or 0.3%, are secured by Mortgaged
Properties which are affiliated with recognized hotel/motel franchisors.
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(5) Including two Mortgage Loans, or 0.1%, secured by assisted living
facilities; one Mortgage Loan, or 0.2%, secured by a congregate care
facility; and nine Mortgage Loans, or 1.5%, secured by skilled nursing
facilities.
(6) Including 71 Mortgage Loans, or 6.6%, secured by retail properties; two
Mortgage Loans, or 0.1%, secured by office properties; and four Mortgage
Loans, or 0.6%, secured by health and fitness properties.
The Mortgaged Properties are located throughout 43 states and the District
of Columbia. Set forth below are the number of Mortgage Loans, and the
approximate percentage of the Initial Pool Balance represented by such Mortgage
Loans, that are secured by Mortgaged Properties located in the states with
concentrations of Mortgage Loans above 5.0%:
<TABLE>
<CAPTION>
PERCENTAGE OF
NUMBER OF INITIAL POOL
STATE MORTGAGE LOANS BALANCE
- ---------------------------------------------------------------------------------- ------------------- ---------------
<S> <C> <C>
California........................................................................ 115 11.8%
Texas............................................................................. 41 10.3%
New York.......................................................................... 30 9.1%
Illinois.......................................................................... 22 7.8%
Florida........................................................................... 58 7.1%
Georgia........................................................................... 31 6.2%
</TABLE>
Two of the Mortgage Loans or 9.6% are to separate borrowers which are each
owned in part by IBM. No other Mortgage Loan or group of Mortgage Loans to one
borrower or group of related borrowers exceeds 4.7% of the Initial Pool Balance.
See "--Additional Mortgage Loan Information."
MORTGAGE LOAN HISTORY
Two hundred seventy-seven (277) of the Mortgage Loans, or 50.0% (the "Lehman
Loans"), will be acquired by the Depositor from the Lehman Seller, which either
originated each such Mortgage Loan or acquired it in connection with its
commercial and multifamily mortgage loan conduit program. Two hundred
seventy-seven (277) of the Mortgage Loans, or 40.3% (the "FUNB Loans"), will be
acquired by the Depositor from FUNB, which either originated each such Mortgage
Loan or acquired it in connection with its commercial and multifamily mortgage
loan conduit program. One hundred twenty-two (122) of the Mortgage Loans or 9.7%
(the "Bank of America Loans"), will be acquired by the Depositor from Bank of
America NT&SA, which originated each such Mortgage Loan in connection with its
commercial and multifamily mortgage loan conduit program. All but 21 of the
Mortgage Loans, or 2.7%, were originated after September 1997.
None of the Mortgage Loans was 30 days or more delinquent as of the Cut-off
Date, and no Mortgage Loan has been more than 30 days delinquent during the 12
months preceding the Cut-off Date.
CERTAIN TERMS AND CONDITIONS OF THE MORTGAGE LOANS
MORTGAGE RATES; CALCULATIONS OF INTEREST. All of the Mortgage Loans bear
interest at Mortgage Rates that will remain fixed for their remaining terms,
except after the Anticipated Repayment Date with respect to 105 of the Mortgage
Loans. See "--Amortization" below. One hundred thirty-three (133) of the
Mortgage Loans, or 19.7%, accrue interest on the basis (a "30/360 basis") of a
360-day year consisting of twelve 30-day months, and 543 of the Mortgage Loans,
or 80.3%, accrue interest on the basis (an "actual/360 basis") of the actual
number of days elapsed over a 360 day year.
DUE DATES. All but six of the Mortgage Loans have Due Dates (that is, the
dates upon which the related Monthly Payments first become due) that occur on
the first day of each month. For purposes of calculating the Cut-off Date
Balance, the May 1998 Due Date of the remaining Mortgage Loan is deemed to be on
the Cut-off Date.
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AMORTIZATION. Four hundred thirty-six (436) of the Mortgage Loans, or
57.0%, provide for Monthly Payments based on amortization schedules
significantly longer than their respective terms to maturity. One hundred five
(105) of the Mortgage Loans (the "ARD Loans"), or 24.2%, provide that if the
unamortized principal amount thereof is not repaid on a date (the "Anticipated
Repayment Date") set forth in the related Mortgage Note, the Mortgage Loan will
accrue additional interest (the "Additional Interest") at the rate set forth
therein and the borrower will be required to apply excess monthly cash flow (the
"Excess Cash Flow") generated by the Mortgaged Property (as determined in the
related Mortgage) to the repayment of principal outstanding on the Mortgage
Loan. With respect to such Mortgage Loans, no Prepayment Premiums or Yield
Maintenance Charges will be due in connection with any principal prepayment
after the Anticipated Repayment Date. One hundred thirty-five (135) of the
Mortgage Loans, or 18.8%, are self-amortizing. Six of the Balloon Loans, or
1.9%, one of the ARD Loans, or 4.4%, and twenty-six (26) of such self-amortizing
Mortgage Loans, or 1.7% (all but one of which are Credit Lease Loans as
described herein), provide for changes in the amount of their respective Monthly
Payments at specified times in the future which coincide with rent increases on
the underlying Credit Leases. See "Risk Factors--Balloon Payments" herein.
PREPAYMENT PROVISIONS. As of the Cut-off Date, all of the Mortgage Loans
restrict or prohibit voluntary principal prepayment. In general, the Mortgage
Loans either (i) prohibit voluntary prepayments of principal for a period ending
on a date specified in the related Mortgage Note and thereafter, in general,
require that prepayments made for most of their respective terms to maturity be
accompanied by a Prepayment Premium and/or Yield Maintenance Charge in excess of
the amount prepaid (178 Mortgage Loans, or 26.8%); (ii) prohibit voluntary
payments of principal for most of their respective terms (495 Mortgage Loans, or
72.5%) or (iii) permit voluntary principal payments provided that the prepayment
is accompanied by a Yield Maintenance Charge or a Prepayment Premium for most of
their respective terms to maturity (three Mortgage Loans, or 0.7%). With respect
to 172 of the Mortgage Loans which impose Yield Maintenance Charges, 171 of such
Mortgage Loans, or 25.3% of such Mortgage Loans, provide for the calculation of
the Yield Maintenance Charge using a discount rate equal to the applicable
Treasury Rate (as set forth in the related Mortgage Note), one of such Mortgage
Loans, or 0.1% of such Mortgage Loans, provide for the calculation of the Yield
Maintenance Charge using a discount rate equal to the applicable Treasury Rate
plus 1.0%. See "--Additional Mortgage Loan Information" herein. Prepayment
Premiums and Yield Maintenance Charges, if and to the extent collected, will be
distributed to the holders of the Offered Certificates as described herein under
"Description of the Certificates--Distributions-- Allocation of Prepayment
Premiums and Yield Maintenance Charges." The Depositor makes no representation
as to the enforceability of the provisions of any Mortgage Note requiring the
payment of a Prepayment Premium or Yield Maintenance Charge, or of the
collectability of any Prepayment Premium or Yield Maintenance Charge.
Four hundred ninety-three (493) of the Mortgage Loans, or 72.5%, provide
that, in general, beginning not earlier than two years after the Closing Date,
provide that, in general, under certain conditions, the holder of the Mortgage
may require the related borrower to substitute a pledge of "Defeasance
Collateral" in exchange for a release of the Mortgaged Property from the lien of
the related Mortgage in lieu of prepaying the Mortgage Loan and paying the
applicable Yield Maintenance Charge or Prepayment Premium. In general,
"Defeasance Collateral" is required to consist of direct, non-callable United
States Treasury obligations that provide for payments prior, but as close as
possible, to all successive Due Dates and the scheduled maturity date (or
Anticipated Repayment Date in the case of ARD Loans), with each such payment
being equal to or greater than (with any excess to be returned to the borrower)
the Monthly Payment due on such date or (i) in the case of a Balloon Loan on the
scheduled maturity date, the Balloon Payment, or (ii) in the case of an ARD
Loan, the principal balance on its Anticipated Repayment Date. The Pooling and
Servicing Agreement will require the Master Servicer or the Special Servicer to
require each borrower that proposes to prepay its Mortgage Loan to pledge
instead Defeasance Collateral, but in each case subject to certain conditions,
including (i) that the defeasance would not have an adverse effect on the REMIC
status of any of the REMICs (accordingly, no defeasance would be required prior
to the
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second anniversary of the Closing Date) and (ii) receipt of confirmation from
each Rating Agency that acceptance of a pledge of the Defeasance Collateral in
lieu of a full prepayment will not result in a downgrade, withdrawal or
qualification of the rating then assigned by it to any Class of Certificates.
The Pooling and Servicing Agreement may not be amended to adversely affect in
any material respect the interests of the holders of any Class of Certificates
without the consent of all the Certificateholders of such Class.
Neither the Master Servicer nor the Special Servicer will be permitted to
waive or modify the terms of any Mortgage Loan prohibiting voluntary prepayments
during a Lockout Period or requiring the payment of a Prepayment Premium or
Yield Maintenance Charge except under the circumstances described in "Servicing
of the Mortgage Loans--Modifications, Waivers and Amendments" herein.
OTHER FINANCING. The Mortgaged Properties securing seven Mortgage Loans, or
0.6%, are encumbered by subordinated debt. In addition, with respect to ten
Mortgage Loans, or 1.8%, the related borrower or their principals have incurred
partnership debt. With limited exception, all of the Mortgage Loans either
prohibit the related borrower from encumbering the Mortgaged Property with
additional secured debt or require the lender's consent prior to so encumbering
such property. See "--Due-on-Sale and Due-on-Encumbrance Provisions" below.
NONRECOURSE OBLIGATIONS. The Mortgage Loans are generally nonrecourse
obligations of the related borrowers and, upon any such borrower's default in
the payment of any amount due under the related Mortgage Loan, the holder
thereof may look only to the related Mortgaged Property for satisfaction of the
borrower's obligations. In addition, in those cases where recourse to a borrower
or guarantor is purportedly permitted, the Depositor has not undertaken an
evaluation of the financial condition of any such person, and prospective
investors should thus consider all of the Mortgage Loans to be nonrecourse.
"DUE-ON-SALE" AND "DUE-ON-ENCUMBRANCE" PROVISIONS. All of the Mortgages
contain "due-on-sale" and "due-on-encumbrance" clauses that, in general, permit
the holder of the Mortgage to accelerate the maturity of the related Mortgage
Loan if the borrower sells or otherwise transfers or encumbers the related
Mortgaged Property or prohibit the borrower from doing so without the consent of
the holder of the Mortgage. However, certain of the Mortgage Loans permit one or
more transfers of the related Mortgaged Property. As provided in the Pooling and
Servicing Agreement, the Master Servicer or the Special Servicer, on behalf of
the Trust Fund, will determine, in a manner consistent with the servicing
standard described herein under "Servicing of the Mortgage Loans--General,"
whether to exercise any right the holder of any Mortgage may have under any such
clause to accelerate payment of the related Mortgage Loan upon, or to withhold
its consent to, any transfer or further encumbrance of the related Mortgaged
Property.
CROSS-DEFAULT AND CROSS-COLLATERALIZATION OF CERTAIN MORTGAGE
LOANS. Thirty-three (33) of the Mortgage Loans, or 2.8%, are
cross-collateralized and cross-defaulted with one or more Mortgage Loans in the
Mortgage Pool as indicated in Annex A. No Mortgage Loans are
cross-collateralized or cross-defaulted with any loans which are not included in
the Mortgage Pool. The Master Servicer or the Special Servicer, as the case may
be, will determine whether to enforce the cross-default and
cross-collateralization rights upon a mortgage loan default with respect to any
of these Mortgage Loans. The Certificateholders will not have any right to
participate in or control any such determination. No other Mortgage Loans are
subject to cross-collateralization or cross-default provisions.
LOW INCOME HOUSING TAX CREDITS. Ten of the Mortgaged Properties, or 0.9%,
are eligible to receive low-income housing tax credits ("Tax Credits") pursuant
to Section 42 of the Code ("Section 42 Properties"). Section 42 of the Code
provides a Tax Credit for owners of residential rental property meeting the
definition of low-income housing who have received a tax credit allocation from
the state or local allocating agency.
At the time the project is "placed in service" (that is, when the first unit
is available for occupancy), the property owner must make an irrevocable
election of one of two set-aside rules, either (i) at least 20%
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of the units must be rented to tenants with incomes of 50% or less of the median
income (as defined below), or (ii) at least 40% of the units must be rented to
tenants with incomes of 60% or less of the median income. The aggregate amount
of Tax Credits the owner is entitled to is based upon the percentage of total
units made available to qualified tenants. Median income is determined by the
U.S. Department of Housing and Urban Development ("HUD") for each metropolitan
area or county in the United States and is adjusted annually.
The Tax Credit provisions require that gross rent for each low-income unit
not exceed 30% of the annual HUD median income, adjusted for the household size
expected to occupy the particular unit. The gross rent charged for a unit must
take into account an allowance for utilities. If utilities are paid by the
tenant, then the maximum allowable Tax Credit rent is reduced according to
utility allowances, as provided in regulations of the Internal Revenue Service.
Under the Tax Credit provisions, a property owner must comply with the
tenant income restrictions and rental restrictions over a 15-year compliance
period, which provide for an annual adjustment of rent according to published
area median income statistics. In addition, agreements governing the property
may require an "extended use period" which has the effect of extending the
income and rental restrictions for an additional period (typically 15 years).
In the event a Tax Credit project does not maintain compliance with the Tax
Credit restrictions on tenant income or rental rates, the owners of the Tax
Credit project may lose the Tax Credits related to the period of the
noncompliance and face the partial recapture of previously taken Tax Credits.
The loss of Tax Credits, and the possibility of recapture of Tax Credits already
taken, may provide significant incentive for project owners to keep the Tax
Credit project in compliance and to fund property operating deficits.
ASSESSMENTS OF PROPERTY CONDITION
PROPERTY INSPECTIONS. All of the Mortgaged Properties were inspected in
connection with the origination or acquisition of the related Mortgage Loans to
assess their general condition. No inspection revealed any patent structural
deficiency or any deferred maintenance considered material and adverse to the
interests of the holders of the Offered Certificates and for which adequate
reserves have not been established.
APPRAISALS. All of the Mortgaged Properties (except for two Mortgage Loans
or 4.7%, control numbers 3 and 4) were appraised by a state certified appraiser
or an appraiser belonging to the Appraisal Institute. The primary purpose of
each appraisal was to provide an opinion of the market value of the related
Mortgaged Property. There can be no assurance that another appraiser would have
arrived at the same opinion of value.
ENVIRONMENTAL ASSESSMENTS. A "Phase I" environmental site assessment was
performed with respect to all the Mortgaged Properties in connection with the
origination of the related Mortgage Loans. In certain cases, additional
environmental testing, as recommended by such "Phase I" assessment, was
performed. Generally, in each case where environmental assessments recommended
corrective action, the originator determined that the necessary corrective
action had been undertaken in a satisfactory manner, was being undertaken in a
satisfactory manner or that such corrective action would be adequately addressed
post-closing. In some instances, the originator required that reserves be
established to cover the estimated cost of such remediation. In connection with
the origination of one Mortgage Loan or 1.8%, a reserve (in the amount of
$400,000) was established for the purpose upgrading an existing sewage treatment
facility located on the related Mortgaged Property. No other Mortgage Loan has
an environmental reserve in excess of $100,000.
ENGINEERING ASSESSMENTS. In connection with the origination of 657 of the
Mortgage Loans, or 96.0%, a licensed engineer or architect inspected the related
Mortgaged Property to assess the structure, exterior walls, roofing, interior
structure and mechanical and electrical systems. No engineering inspections were
made with respect to the remaining 19 Mortgage Loans (including Credit Lease
Loans), or 4.0%, which were determined by the related Mortgage Loan Seller to be
either "new construction" or a "substantially
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rehabilitated property" pursuant to its underwriting guidelines. The resulting
reports indicated certain deferred maintenance items and/or recommended capital
improvements with respect to certain of such Mortgaged Properties. Generally,
with respect to a majority of Mortgaged Properties, the related borrowers were
required to deposit with the lender an amount equal to at least 125% of the
licensed engineer's estimated cost of the recommended repairs, corrections or
replacements to assure their completion.
EARTHQUAKE ANALYSES. An architectural and engineering consultant performed
an analysis on 112 of the 115 Mortgaged Properties located in the State of
California in order to evaluate the structural and seismic condition of the
property and to assess, based primarily on statistical information, the maximum
probable loss for the property in an earthquake scenario. The resulting reports,
which were prepared not earlier than January 1997, concluded that in the event
of an earthquake, only 11 of the Mortgaged Properties are likely to suffer a
bounded or probable maximum loss in excess of 25% of the amount of the estimated
replacement cost of the improvements. Five of those 11 Mortgaged Properties are
covered by earthquake insurance in an amount at least equal to the outstanding
principal balance of the related Mortgage Loan. Four of the Mortgage Loans are
required to be covered by such insurance through the maturity date thereof. One
Mortgage Loan, or 0.05%, is covered by earthquake insurance through the earlier
of the maturity date or the completion of certain seismic retrofitting
recommended by a consultant to reduce the maximum probable loss to less than 25%
of the amount of the amount of the estimated cost of the improvements.
THE FOUR LARGEST LOANS
THE IBM/SOMERS LOAN
The largest Mortgage Loan, the IBM/Somers Loan, was originated by the Lehman
Seller and has a Cut-off Date Balance of $178,378,814. The IBM/Somers Loan is
self amortizing and is secured by a first mortgage encumbering the fee simple
interest in a five building "Class A" office complex located in Somers, New York
(the "IBM/Somers Property"). The IBM/Somers Property is triple net leased to
International Business Machines Corporation ("IBM") for the term of the
IBM/Somers Loan (such lease, the "IBM/Somers Net Lease"). IBM's senior unsecured
debt is rated A+/A1 by Standard & Poor's and Moody's, respectively. The
IBM/Somers Loan was made to New Somers, L.L.C. (the "IBM/Somers Borrower"), a
special purpose limited liability company, whose members are affiliates of IBM
(50%), Shorenstein Company, L.P. (25%) and Fremont Investors, Inc. (25%). The
IBM/Somers Borrower is an affiliate of the IBM/Broadmoor Borrower.
The IBM/Somers Loan has a remaining term to maturity of 185 months and is
scheduled to mature on October 1, 2013. Except in connection with certain
casualty or condemnation events, the IBM/Somers Borrower is prohibited from
voluntarily prepaying the IBM/Somers Loan prior to August 15, 2013. The
IBM/Somers Borrower is permitted to defease the IBM/Somers Loan with United
States Treasury obligations beginning two years from the Closing Date.
Additional terms for the IBM/Somers Loan are as set forth on Annex A.
The Property. The IBM/Somers Property is located on 747-acre parcel in
Somers, New York (Westchester County). The IBM/Somers Property was designed by
I.M. Pei and constructed in 1987 to IBM's specifications. The IBM/Somers
property includes four four-story office buildings and one four-story corporate
services building. As currently developed, the property includes a total of
1,078,069 square feet of net rentable space and parking for 2,639 cars (with an
additional 700 spaces to be added in September 1998). The IBM/Somers Property is
fully occupied by five operating divisions of IBM and is leased to IBM pursuant
to the IBM/Somers Net Lease.
Value. The Cut-off Date LTV Ratio of the IBM/Somers Loan is 63.7%, as
leased. The appraised value of the IBM/Somers Property as of February, 1998 was
(a) $280,000,000 on an as leased basis and (b) $232,000,000 on a mark to market
basis.
DSC Ratio. The IBM/Somers Loan has a DSC Ratio of 1.32x.
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Lock Box. All rents payable under the IBM/Somers Net Lease are required to
be deposited into a hard lockbox account controlled by the Master Servicer.
The IBM/Somers Net Lease. Pursuant to the IBM/Somers Net Lease, IBM has
leased the entire IBM/Somers Property through October 31, 2013. The IBM/Somers
Net Lease provides for annual base rental payments (through October 31, 1998) in
the amount of $23,378,273, which rental amount will increase to $24,795,587
during the period between November 1, 1998 and October 31, 2008, and $25,873,656
during the period between November 1, 2008 and October 31, 2013. The IBM/Somers
Net Lease provides for two 5-year renewal options at an annual rent equal to 90%
of then fair market rent.
Costs of Repairs and Replacements. Pursuant to the IBM/Somers Net Lease,
IBM is required to pay all operating expenses, insurance premiums, and
maintenance and repair costs, including structural repairs (except as set forth
below), with respect to the IBM/Somers Property. The IBM/Somers Borrower is
responsible for making certain structural repairs required by a change of law;
however, if the IBM/Somers Borrower incurs such expenses, the rent payable under
the IBM/Somers Net Lease will be increased each year by 22% of the cost of such
repairs until the earlier to occur of (i) the end of the term of the IBM/ Somers
Net Lease and (ii) the date on which such costs have been fully amortized and
repaid to the IBM/ Somers Borrower.
Casualty and Condemnation. Upon a casualty event, the base rent payable
under the IBM/Somers Net Lease will be abated in proportion to the percentage of
the IBM/Somers Property that is damaged. If (i) fifty percent or more of the
HVAC and mechanical systems of the IBM/Somers Property, and (ii) seventy-five
percent or more of the rentable area of the IBM/Somers Property is damaged and
such damage cannot be repaired within two years after the date of such damage,
or if the IBM/Somers Net Lease is scheduled to expire within two years after the
date of such damage, IBM may elect to terminate the IBM/Somers Net Lease. In all
other cases, the IBM/Somers Borrower is obligated to repair and restore the
damage, regardless of whether the insurance proceeds are sufficient to complete
such repairs; provided, however, if the amount of insurance proceeds is not
sufficient to complete such repairs, IBM is obligated to pay all or a portion of
such excess pursuant to a formula based on the number of years remaining in the
term (assuming that both renewal options are exercised) and the expected life of
the replacement item.
In the event of a total condemnation of the IBM/Somers Property, the
IBM/Somers Net Lease will terminate. Partial condemnations reducing the rentable
area will result in a proportionate reduction in lease payments if a partial
taking deprives IBM of 75% of rentable area IBM may terminate the Somers Net
Lease.
Condemnation Study. In connection with the origination of the IBM/Somers
Loan a condemnation study was performed. The study concluded that there was no
risk of material condemnation for the IBM/ Somers Property.
THE IBM/BROADMOOR LOAN
The IBM/Broadmoor Loan was originated by the Lehman Seller and has Cut-off
Date Balance of $154,000,000. The IBM/Broadmoor Loan is secured by a first deed
of trust encumbering the leasehold estate of the IBM/Broadmoor Borrower
(hereinafter defined) in a seven building "Class A" office complex located in
Austin, Texas, and known as the Broadmoor Austin Office Complex (the
"IBM/Broadmoor Property"). The IBM/Broadmoor Property is currently occupied by
IBM pursuant to a triple net lease through March 2006 for 100% of the space, and
for at least 70% of the space through March 2011. IBM's senior unsecured debt is
rated A+/A1 by Standard & Poor's and Moody's, respectively. The IBM/ Broadmoor
Loan was made to Broadmoor Austin Associates (the "IBM/Broadmoor Borrower"), a
special-purpose limited partnership, whose partners are affiliates of IBM (50%)
and Prentiss Properties Trust ("Prentiss") (50%). As of March 31, 1998, Prentiss
owned interests in 229 office and industrial properties with approximately 19.8
million net rentable square feet. Prentiss is a publicly traded real estate
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investment trust ("REIT") on the New York Stock Exchange ("PP"). The
IBM/Broadmoor Borrower is an affiliate of the IBM/Somers Borrower.
The IBM/Broadmoor Loan is an ARD Loan with an Anticipated Repayment Date of
April 10, 2011 (the "IBM/Broadmoor ARD") and with a final maturity date of April
10, 2023. Through April 10, 2001, the IBM/Broadmoor Loan requires monthly
payments of interest only, accrued on an actual/360 basis. From May 10, 2001,
through and including the payment due on April 10, 2006, the IBM/Broadmoor Loan
requires monthly payments in the amount of $1,356,347.00, and from May 10, 2006
through and including March 10, 2011, the required monthly payment is
$1,360,917.00. The principal amount scheduled to be outstanding on the
IBM/Broadmoor ARD is $76,967,566. The above-payment schedule is equivalent to an
amortization schedule of approximately 19.5 years.
Prepayment. Except in connection with certain casualty or condemnation
events, the IBM/ Broadmoor Borrower is prohibited from voluntarily prepaying the
IBM/Broadmoor Loan until 45 days prior to the IBM/Broadmoor ARD. The
IBM/Broadmoor Borrower is permitted to defease with United States Treasury
Obligations the loan beginning two years from the Closing Date.
Additional terms for the IBM/Broadmoor Loan are as set forth on Annex A.
The Property. The IBM/Broadmoor Property is owned by IBM and is leased to
the IBM/Broadmoor Borrower pursuant to the IBM/Broadmoor Ground Lease
(hereinafter defined). The IBM/Broadmoor Property is comprised of seven
buildings--one single-story, three six-story and three eight-story. The
buildings contain 1,112,236 rentable square feet, in the aggregate, and parking
for approximately 3,000 cars. The IBM/Broadmoor Property is fully occupied by
IBM pursuant to the IBM/Broadmoor Net Lease.
Value. The Cut-off Date LTV Ratio of the IBM/Broadmoor Loan is 76.2%, as
leased. The appraised value of the IBM/Broadmoor Property as of December 1, 1997
is (a) $202,000,000 assuming IBM renews its lease upon its expiration in March
2011 and (b) $187,000,000 assuming IBM vacates at the time of lease expiration.
DSC Ratio. The DSC Ratio of the IBM/Broadmoor Property is 1.50x based upon
required debt service payments during the loan's interest-only period.
Property Management. The IBM/Broadmoor Property is managed by Prentiss
Properties Management, L.P., an affiliate of Prentiss. As of March 31, 1998,
Prentiss was one of the 20 largest managers of office and industrial properties
in the United States, managing approximately 49.0 million square feet in 484
office and industrial properties.
The holder of the IBM/Broadmoor Mortgage may terminate the property manager
for certain events, including but not limited to an event of default under the
management agreement or an event of default under the IBM/Broadmoor Loan
documents.
Lock Box. All rents payable under the IBM/Broadmoor Net Lease are required
to be deposited into a hard lockbox account controlled by the Master Servicer.
Reserve Accounts. As described below, the term of the IBM/Broadmoor Net
Lease as it relates to the IBM Put-Back Space (hereinafter defined), comprised
of approximately 338,701 square feet of space, will expire on March 31, 2006,
subject to IBM's right under the IBM/Broadmoor Net Lease to re-lease the IBM
Put-Back Space. If IBM does not elect to re-lease the IBM Put-Back Space, the
IBM/Broadmoor Borrower will be required to create certain reserve accounts with
the Trustee with respect to (i) real estate taxes and assessments and insurance
premiums payable with respect to the IBM Put-Back Space, and (ii) certain
construction work and other future leasing expenses with respect to the IBM
Put-Back Space (collectively, "Replacements and Leasing Expenses"). The escrow
for Replacements and Leasing Expenses, $20 per square foot of IBM Put-Back
Space, must be funded in full, either in cash or in the form of a letter of
credit, on the first business day after the date on which the IBM Put-Back Space
is no longer included in the premises demised under the IBM/Broadmoor Net Lease.
Once funded, the escrow for Replacements and Leasing Expenses need not be
replenished, but must remain equal to $20 per square foot of the IBM Put-Back
Space not re-leased to another tenant.
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The IBM/Broadmoor Net Lease. Pursuant to a lease dated May 9, 1990 (the
"IBM/Broadmoor Net Lease"), between the IBM/Broadmoor Borrower, as landlord, and
IBM, as tenant, IBM has leased the entire IBM/Broadmoor Property through March
31, 2011. The IBM/Broadmoor Property is presently 100% occupied by IBM.
Base Rental Payments; Term. The IBM/Broadmoor Net Lease provides for annual
base rental payments (through March 31, 2001) in the amount of $16,591,442.37,
which rental amount shall increase to $20,358,949.00 during the period between
April 1, 2001 and March 31, 2006, and $16,631,002.50 during the period between
April 1, 2006 and March 31, 2011. The IBM/Broadmoor Net Lease provides for two
(2) 5-year renewal terms.
Early Expiration Date for Portion of Space. The IBM/Broadmoor Net Lease
will expire on March 31, 2006, as to the 338,701 square feet of space located in
"Units 5 and 6" of the IBM/Broadmoor Property (the "IBM Put-Back Space").
Pursuant to the IBM/Broadmoor Net Lease, IBM/ has the right to re-lease the IBM
Put-Back Space effective upon such early expiration date.
Costs of Repairs and Replacements. Pursuant to the IBM/Broadmoor Net Lease,
IBM is required to pay all operating expenses of the IBM/Broadmoor Property,
including all real estate taxes, insurance, maintenance and repair costs,
including structural repairs and any costs incurred to keep the IBM/ Broadmoor
Property in compliance with law. The IBM/Broadmoor Net Lease allows IBM to elect
to have the IBM/Broadmoor Borrower perform, at IBM's expense, certain
operational and maintenance functions. The IBM/Broadmoor Borrower is currently
responsible for the following: repair and maintenance of buildings' shell,
slabs, exterior windows and exterior facade, maintenance and repair of the
parking garage, roadways, parking lots and sidewalks, roofs, exterior
landscaping, fountains, pools and signage, exterior lighting, exterior window
cleaning and policing the grounds for removal of incidental trash.
Casualty and Condemnation. If (i) the IBM/Broadmoor Property is the subject
of substantial damages (defined generally as damage of 25% or more of the
Property or a taking of 25% or more of the IBM/Broadmoor Property which is not
replaced within 15 months, or the term of the IBM/Broadmoor Net Lease will
expire within two years after the date of such casualty or condemnations, (ii)
there is a condemnation of 25% or more of the rentable square feet of the
IBM/Broadmoor Property and, in IBM's reasonable opinion, IBM cannot continue
normal business operations or there is a taking of such number of parking spaces
which cannot be replaced in compliance with law or as may be reasonably
necessary for tenant's continued use of the IBM/Broadmoor Property or, (iv)
there is a temporary taking for a period exceeding 15 consecutive months and in
IBM's reasonable opinion, IBM cannot continue its normal business operations,
then, in each case, either IBM/Broadmoor Borrower or IBM may terminate the IBM/
Broadmoor Net Lease as to the affected buildings only. Upon such termination,
the rent payable under the IBM/Broadmoor Net Lease will be appropriately
adjusted and during the period of such damage, the rent payable under the
IBM/Broadmoor Net Lease will be abated in proportion to the percentage of the
IBM/ Broadmoor Property that is damaged in such casualty event.
If the IBM/Broadmoor Net Lease is not terminated as described above, the
IBM/Broadmoor Borrower is obligated to repair and restore the damage; provided,
however, if the cost to restore the damage exceeds the amount of net casualty
proceeds or net condemnation award, the IBM/Broadmoor Borrower will have the
right to scale back the restoration, unless either the IBM/Broadmoor Borrower or
IBM elects to contribute additional funds. If the IBM/Broadmoor Borrower does
not commence or complete restoration within the periods provided in the
IBM/Broadmoor Net Lease, IBM will have the right (i) to terminate the
IBM/Broadmoor Net Lease or (ii) to complete the restoration using the balance of
the net insurance proceeds or net condemnation award, as the case may be.
Condemnation Study. In connection with the origination of the IBM/Broadmoor
Loan a condemnation study was performed. The study concluded that there was no
risk of material condemnation for the IBM/Broadmoor Property.
The IBM/Broadmoor Ground Lease. The IBM/Broadmoor Borrower leases the
IBM/Broadmoor Property to IBM pursuant to a ground lease dated May 9, 1990 (the
"IBM/Broadmoor Ground Lease").
S-44
<PAGE>
The initial term of the IBM/Broadmoor Ground Lease will expire on March 31,
2015, and the IBM/ Broadmoor Borrower has the option to extend the IBM/Broadmoor
Ground Lease for two consecutive 25-year renewal terms. Under the terms of the
Mortgage, the IBM/Broadmoor Borrower is required to extend the IBM/Broadmoor
Ground Lease. The fixed rent payable under the Ground Lease is $150,000 per
annum through March 31, 2005 and $300,000 per annum thereafter, until March 31,
2015. The rent payable during the extension terms is ninety percent of the fair
market value of the land, but in no event less than $300,000 per annum. Upon the
assignment of the leasehold estate created pursuant to the IBM/ Broadmoor Ground
Lease, the IBM/Broadmoor Borrower has the right to require the borrower to
purchase the fee simple interest in the land for $15,000,000.
The IBM/Broadmoor Borrower has irrevocably authorized the Trustee to
exercise any extensions or renewals of the IBM/Broadmoor Net Lease. In addition,
it is an event of default under the related mortgage if the IBM/Broadmoor
Borrower fails to exercise the initial renewal term.
THE FOX VALLEY LOAN.
The Fox Valley Loan was originated by the Lehman Seller and has Cut-off Date
Balance of $85,527,649. The Fox Valley Loan is a secured by a first mortgage
(the "Fox Valley Mortgage") encumbering the fee simple interest in the Fox
Valley Mall, a two level, 1.4 million square foot regional shopping center in
Aurora, Illinois (the "Fox Valley Property"). The Fox Valley Loan was made to
Fox Valley Mall LLC (the "Fox Valley Borrower"), a special purpose limited
liability company controlled by Urban Shopping Centers, Inc. ("Urban"). As of
March 31, 1998, Urban owned/operated 17 shopping centers with approximately 15.3
million square feet of space. Urban is a publicly traded REIT on the New York
Stock Exchange ("URB"). The Fox Valley Borrower is an affiliate of the Hawthorn
Borrower.
The Fox Valley Loan is an ARD Loan with an Anticipated Repayment Date of
November 10, 2006 and with a final maturity date of November 10, 2031. Payments
of interest only are due on the Fox Valley Loan until its Anticipated Repayment
Date. Except under limited circumstances relating to certain casualty or
condemnation events, the Fox Valley Borrower is prohibited from prepaying the
Fox Valley Loan prior to its Anticipated Repayment Date, after which it may be
prepaid at any time without penalty. The Fox Valley Borrower may defease the
loan with United States Treasury obligations beginning two years from the
Closing Date.
Additional terms for the Fox Valley Loan are as set forth on Annex A.
Lock Box. If there occurs an event of default under the Fox Valley Loan, if
the loan has not been repaid in full on or before the date six months after the
Anticipated Repayment Date, or if the debt service coverage ratio for the
immediately preceding twelve (12) month period falls below 1.25x, the Fox Valley
Borrower must establish a hard lockbox account controlled by the Master Servicer
and instruct the tenants of the Fox Valley Property to make payment of all rents
to such lockbox.
The Property. Fox Valley Mall is a two level, 1.4 million square foot
regional shopping center, located west of Chicago in Aurora, Illinois. The
property site, which covers 118 acres and includes 8,121 parking spaces, was
constructed in 1974/75. The shopping center comprises 868,485 square feet of
space owned and occupied by four anchor tenants, two pads utilized by a theater
and a health club and 567,260 square feet of in-line mall space. The theater, a
health club and the 566,001 square feet of in-line mall space are the collateral
for the Fox Valley Loan.
Anchor Stores. Fox Valley Mall has four anchor tenants: Marshall Field,
Sears, Carson Pirie Scott and JC Penney, each of which owns its respective space
(which is not collateral for the Fox Valley Loan). The anchors occupy 60.5% of
the gross leasable area of the Fox Valley Mall.
Recent Renovations and Covenant to Renovate. In January 1998, the Fox
Valley Borrower commenced an extensive renovation of the common areas of the Fox
Valley Mall. The renovation is expected to cost approximately $12,000,000, and
will include the remodeling of the food court, enhanced lighting and a new
elevator and escalator. The Fox Valley Borrower has covenanted in the loan
documents that it will spend a minimum of $7,000,000 on renovations to Fox
Valley Mall by April 1, 1999.
S-45
<PAGE>
TEN LARGEST MALL STORE TENANTS (FOX VALLEY PROPERTY)(1)
<TABLE>
<CAPTION>
DATE OF
LEASE
TENANT SQUARE FEET EXPIRATION
- --------------------------------------------------------------- ----------- ---------------
<S> <C> <C>
The Limited.................................................... 18,765 1/31/06
Abercrombie & Fitch............................................ 12,580 1/31/07
Lerner......................................................... 12,316 1/31/02
Compaigne Int'l................................................ 12,242 1/31/03
Structure/Bath & Body.......................................... 9,000 7/31/06
Lane Bryant.................................................... 7,847 4/30/07
World Footlocker............................................... 13,925 12/31/03
Noodle Kidoodle................................................ 11,500 2/28/06
Gantos......................................................... 11,334 1/31/02
Waldenbooks.................................................... 9,940 1/31/04
-----------
Total........................................................ 119,449
</TABLE>
- ------------------------
(1) Excludes theater and health club.
LEASE EXPIRATION SCHEDULE (FOX VALLEY PROPERTY)
<TABLE>
<CAPTION>
YEAR # OF LEASES EXPIRING SF % OF TOTAL SF
- --------------------------------------------------------- --------------- ----------- -------------
<S> <C> <C> <C>
Month to Month Tenancy................................... 8 10,726 1.9%
1998................................................... 13 18,804 3.3%
1999................................................... 15 40,869 7.2%
2000................................................... 17 36,886 6.5%
2001................................................... 10 28,820 5.1%
2002................................................... 12 40,416 7.1%
2003................................................... 16 58,350 10.3%
2004................................................... 21 67,171 11.9%
2005................................................... 12 21,503 3.8%
2006................................................... 15 73,468 13.0%
2007................................................... 10 38,065 6.7%
2008+.................................................. 15 45,127 8.0%
5 Year Avg. Rollover...................................................... 33,236
7 Year Avg. Rollover...................................................... 44,671
</TABLE>
Value. The Fox Valley Property has a LTV of 61.5% based upon a Lehman
Seller internal valuation of $138,994,118 (8.5% cap rate on underwritten NOI of
$11,814,500).
DSC Ratio. The Fox Valley Loan has a DSC Ratio of 1.91x.
Property Management. Fox Valley Mall is managed by Urban Retail Properties
Co., an affiliate of Urban, which currently manages approximately 50 million
square feet of space throughout the United States. The Fox Valley Loan documents
provide that the management agreement may be terminated upon an event of default
under the Fox Valley Loan.
THE HAWTHORN CENTER LOAN.
The Hawthorn Center loan (the "Hawthorn Loan") was originated by the Lehman
Seller and has a Cut-off Date Balance of $77,863,877. The Hawthorn Loan is,
secured by a first mortgage encumbering the fee simple interest in the Hawthorn
Center, a two-level, 1.2 million square foot regional shopping center in Vernon
Hills, Illinois (the "Hawthorn Property"). The Hawthorn Loan was made to
Hawthorn Mall LLC (the "Hawthorn Borrower"), a special purpose limited liability
company controlled by Urban. The Hawthorn Borrower is an affiliate of the Fox
Valley Borrower.
The Hawthorn Loan is an ARD Loan with and an Anticipated Repayment Date of
November 10, 2008 and with a final maturity date of November 10, 2033. Payments
of interest only are due on the
S-46
<PAGE>
Hawthorn Loan until its Anticipated Repayment Date. Except under limited
circumstances relating to certain casualty or condemnation events, the Hawthorn
Borrower is prohibited from prepaying the Hawthorn Loan. The Hawthorn Borrower
may defease the loan with United States Treasury obligations beginning two years
from the Closing Date.
Additional terms for the Hawthorn Loan are as set forth on Annex A.
Lock Box. If there occurs an event of default under the Hawthorn Loan, if
the loan has not been repaid in full on or before the date six months after the
Anticipated Repayment Date, or if the debt service coverage ratio for the
immediately preceding twelve month period falls below 1.25x, the Hawthorn
Borrower must establish a hard lockbox account to be controlled by the Master
Servicer and instruct the tenants of the Hawthorn Property to make payment of
all rents to such account.
The Hawthorn Property. Hawthorn Center covers 95 acres and includes 6,779
parking spaces, was constructed in 1973 and underwent remodeling and renovations
in both 1988 and 1994. The shopping center comprises 729,381 square feet of
space owned and occupied by four anchor tenants, two pads utilized by a theater
and a health club and 499,282 square feet of in-line mall space. The 499,282
square feet of in-line mall space and the pad leased to the health club are the
collateral for the Hawthorn Loan.
Value. The Hawthorn Loan has a 58.85% Cut-off Date LTV Ratio based upon a
Lehman Seller internal valuation of $132,421,624 (8.5% cap rate on underwritten
NOI of $11,255,838).
DSC Ratio. The Hawthorn Loan has a 2.00x DSC Ratio.
The Anchor Stores. Hawthorn Center has four anchor tenants: Marshall Field,
Sears, Carson Pirie Scott and JC Penney, each of which owns its respective space
(which is not collateral for the Hawthorn Property). The anchor tenants occupy
59.1% of the gross leasable area of the Hawthorn Property. The JC Penney store
opened for business in November 1997, and Marshall Field completed an
$18,000,000 renovation of its store in 1994.
TEN LARGEST RETAIL TENANTS (HAWTHORN PROPERTY)(1)
<TABLE>
<CAPTION>
DATE OF
LEASE
TENANT SQUARE FEET EXPIRATION
- --------------------------------------------------------------- ----------- ---------------
<S> <C> <C>
Barnes & Noble................................................. 27,399 1/31/06
The Limited.................................................... 17,119 1/31/05
Abercrombie & Fitch............................................ 12,220 6/30/06
GAP/GAP Kids................................................... 12,190 3/31/08
Lerner......................................................... 11,877 6/30/05
Crate & Barrel................................................. 10,410 7/31/03
Jos. A. Banks.................................................. 9,078 2/28/00
Footlocker..................................................... 8,826 8/30/07
Express........................................................ 8,763 11/30/01
Eddie Bauer.................................................... 8,503 1/31/05
-----------
Total........................................................ 103,508
</TABLE>
- ------------------------
(1) Excludes theater and health club.
S-47
<PAGE>
LEASE EXPIRATION SCHEDULE (HAWTHORN PROPERTY)
<TABLE>
<CAPTION>
YEAR # OF LEASES EXPIRING SF % OF TOTAL SF
- --------------------------------------------------------- --------------- ----------- -------------
<S> <C> <C> <C>
Month to Month Tenancy................................... 5 6,377 1.3%
1998................................................... 14 23,455 4.7%
1999................................................... 12 14,353 2.9%
2000................................................... 15 37,217 7.5%
2001................................................... 14 45,976 9.2%
2002................................................... 13 29,435 5.9%
2003................................................... 10 31,582 6.3%
2004................................................... 11 32,945 6.6%
2005................................................... 12 53,652 10.7%
2006................................................... 16 69,646 13.9%
2007................................................... 16 54,144 10.8%
2008+.................................................. 12 43,077 8.6%
5 Year Avg. Rollover...................................................... 30,087
7 Year Avg. Rollover...................................................... 30,709
</TABLE>
Value. The Hawthorn Property has a Cut-off Date LTV Ratio of 58.8% based
upon a Lehman Seller internal valuation of $132,421,624 (8.5% cap rate on
underwritten NOI of $11,255,838).
DSC Ratio. The Hawthorn Center Loan has DSC Ratio of 2.00x.
PROPERTY MANAGEMENT. Hawthorn Center is managed by Urban Retail Properties
Co., an affiliate of Urban. The Hawthorn Loan documents provide that the
management agreement may be terminated upon an event of default under the
Hawthorn Loan.
CREDIT LEASE LOANS
Each Credit Lease has a primary lease term (the "Primary Term") that expires
on or after the scheduled final maturity date of the related Credit Lease Loan.
The Credit Lease Loans are scheduled to be fully repaid from (i) Monthly Rental
Payments made over the Primary Term of the related Credit Lease or (ii) with
respect to Credit Lease Loans which are Balloon Loans, Monthly Rental Payments
and the related Balloon Payments (which Balloon Payments, in the case of Credit
Lease Loans which have the benefit of residual value insurance policies, may be
repaid from amounts paid by the related insurer pursuant to such policies).
Certain of the Credit Leases give the Tenant the right to extend the term of the
Credit Lease by one or more renewal periods after the end of the Primary Term.
The amount of the Monthly Rental Payments payable by each Tenant (plus, in
certain Mortgage Loans, the amount in the debt service reserve account, which
will be drawn upon through the date of the termination of any rent credits) is
equal to or greater than the scheduled payment of all principal, interest and
other amounts due each month on the related Credit Lease Loan. In the case of
Credit Lease Loans with debt service reserve accounts, withdrawals of funds on
deposit in the debt service reserve account will be used to supplement Monthly
Rental Payments in an amount necessary to fully amortize such Mortgage Loans.
S-48
<PAGE>
Set forth in the table below (the "Credit Lease Table") for each Credit
Lease Loan, is the name of the Tenant, the Cut-off Date balance of the related
Credit Lease Loan, the Guarantor, if any, the rating of the Tenant or Guarantor
and the Credit Lease type.
<TABLE>
<CAPTION>
NUMBER CUT-OFF DATE PROPERTY LEASE CREDIT
TENANT/GUARANTOR OF LOANS BALANCE ($) TYPE TYPE(1) RATING
- -------------------------------- ------------- -------------- --------------------- ----------- --------------------
<S> <C> <C> <C> <C> <C>
Brinker International........... 5 $ 62,536,008 Restaurant B (4)
Walgreen Company................ 12 31,221,461 Drug Store NN Aa3/A+
Eckerd Corporation.............. 4 6,814,403 Drug Store NNN A2/A(2)
Eckerd Corporation.............. 10 17,936,104 Drug Store NN A2/A(2)
Q Club.......................... 4 20,858,360 Health Club B (4)
Rite Aid Corp................... 8 15,363,721 Drug Store NN Baa1/BBB+
J Sainsbury PLC................. 1 13,760,326 Grocery NN Aa3/A+
CVS Corporation................. 8 13,255,513 Drug Store NN A3/A-
Revco D.S. Inc.................. 7 12,065,289 Drug Store NN Baa1/A-
K-Mart.......................... 1 11,283,801 Retail NNN Ba2/BB
Kroger Company.................. 2 10,761,648 Grocery NNN Baa3/BBB-
Winn-Dixie Stores, Inc.......... 3 10,550,292 Grocery NN P1/A1(3)
A & P........................... 1 6,163,227 Grocery NNN Baa3/BBB-
IHOP Corp....................... 3 4,084,310 Restaurant NNN (4)
Staples......................... 1 3,361,991 Office Supplies NN Baa3/BB+
Pep Boys........................ 1 3,124,249 Auto Parts NNN Baa2/BBB+
Safeway......................... 1 3,022,231 Grocery NN Baa2/BBB
Office Depot.................... 1 2,194,462 Office Supplies NNN Baa2/BB+(5)
State Farm...................... 1 1,666,979 Operations Center NN Aaa/AAA(6)
Sears Roebuck & Co.............. 1 918,191 Retail NNN A2/A-
Ashtead Group, PLC.............. 1 891,617 Equipment Rental NN (4)
United States Postal Service.... 1 828,686 Post Office NN (4)
--
-------------- --------------------- ----- --------------------
Total........................... 77 $ 252,662,868 -- --
--
--
</TABLE>
- ------------------------
Unless otherwise indicated, such ratings were the highest rating assigned to the
applicable tenant or guarantor, as applicable, by Moody's and Standard & Poor's,
respectively.
(1) "NNN" means triple net lease; "NN" means double net lease; "B" means
bond-type lease.
(2) Based upon the rating of Eckerd's parent, J.C. Penny Corporation, although
it has made no explicit guaranty of Eckerd's obligations.
(3) Commercial paper rating.
(4) Private rating; disclosure not available.
(5) Unsecured bank facility rating.
(6) Claims paying ability rating.
Each Credit Lease generally provides that the related Tenant is responsible
for all real property taxes and assessments levied or assessed against the
related Mortgaged Property, and except as discussed below in the case of certain
of the Double Net Leases, all charges for utility services, insurance and other
operating expenses incurred in connection with the operation of the related
Mortgaged Property.
Generally, each Credit Lease Loan provides that if the Tenant defaults
beyond applicable notice and grace periods in the performance of any covenant or
agreement in such Credit Lease (a "Credit Lease Default"), then the holder of
the related Mortgage may require the related Mortgagor either (i) to
S-49
<PAGE>
terminate such Credit Lease or (ii) refrain from the exercise of any of its
rights thereunder. A Credit Lease Default will constitute a default under the
related Credit Lease Loan, although in certain cases the Mortgagor may possess
certain cure rights.
In addition, most of the Credit Leases permit the Tenant, at its own
expense, and generally with the consent of the Mortgagor, to make such
alterations or improvements on the related Mortgaged Property as the Tenant may
deem necessary or desirable. Such actions, if undertaken by the Tenant, will not
affect the Tenant's obligations under the Credit Lease.
Lease termination rights and rent abatement rights, if any, provided Tenants
in the Credit Leases may be divided into three categories: (i) termination and
abatement rights directly arising from certain casualty occurrences or
condemnations ("Casualty or Condemnation Rights"), (ii) termination and
abatement rights arising from a Mortgagor's default relating to its obligations
under a Credit Lease to perform required maintenance, repairs or replacements
with respect to the related Mortgaged Property ("Maintenance Rights") and (iii)
termination and abatement rights arising from a Mortgagor's default in the
performance of various other obligations under the Credit Lease, including
remediating environmental conditions not caused by the Tenant, enforcement of
restrictive covenants affecting other property owned by the Mortgagor in the
area of the related Mortgaged Property and complying with laws affecting such
Mortgaged Property or common areas related to such Mortgaged Property
("Additional Rights"). Certain Credit Leases ("Bond-Type Leases") provide
neither Casualty or Condemnation Rights, Maintenance Rights nor Additional
Rights and the Tenants thereunder are required, at their expense, to maintain
their related Mortgaged Property in good order and repair. Other Credit Leases
provide Casualty or Condemnation Rights and may provide Additional Rights
("Triple Net Leases"). The Tenants under Triple Net Leases are required, at
their expense, to maintain their Mortgaged Properties, including the roof and
structure, in good order and repair. Additionally, certain of the Credit Leases
provide Casualty or Condemnation Rights and Maintenance Rights and may provide
Additional Rights ("Double Net Leases"). If the Mortgagor defaults in the
performance of certain obligations under a Triple Net Lease or a Double Net
Lease and the Tenant exercises its Additional Rights or Maintenance Rights,
there could be a disruption in the stream of Monthly Rental Payments available
to pay principal and interest to the Credit Lease Loans. Generally, Additional
Rights and Maintenance Rights are mitigated by repair and maintenance reserves,
debt service coverage ratios in excess of 1.0x and, prior to the disbursement of
such Mortgage Loan, receiving Tenant estoppel certificates (i.e., Tenant
certificates confirming the non-existence of landlord default).
Credit Leases with respect to nine of the Mortgage Loans, or 2.4%, are
Bond-Type Leases, Credit Leases with respect to 14 Mortgage Loans, or 1.3%, are
Triple Net Leases and Credit Leases with respect to 54 of the Mortgage Loans, or
3.6%, are Double Net Leases.
At the end of the term of the Credit Leases, Tenants are generally obligated
to surrender the related Mortgaged Properties in good order and in its original
condition received by the Tenant, except for ordinary wear and tear and repairs
required to be performed by the Mortgagor.
Pursuant to the terms of each Credit Lease Assignment, the related Mortgagor
has assigned to the mortgagee of the related Credit Lease Loan, as security for
such Mortgagor's obligations thereunder, such Mortgagor's rights under the
Credit Leases and its rights to all income and profits to be derived from the
operation and leasing of the related Mortgaged Property including, but not
limited to, an assignment of any guarantee of the Tenant's obligations under the
Credit Lease and an assignment of the right to receive all Monthly Rental
Payments due under the Credit Leases. Pursuant of the terms of the Credit Lease
Assignments, each Tenant is obligated under its Credit Lease to make all Monthly
Rental Payments directly to the owner of the related Credit Lease Loan.
Repayment of the Credit Lease Loans and other obligations of the Mortgagors are
expected to be funded from such Monthly Rental Payments. Notwithstanding the
foregoing, the Mortgagors remain liable for all obligations under the Credit
Lease Loans (subject to the non-recourse provisions thereof).
S-50
<PAGE>
Each Credit Lease Loan that provides the Tenant with a Casualty or
Condemnation Right has the benefit of a noncancelable Lease Enhancement Policy
issued by the Enhancement Insurer. Each Lease Enhancement Policy provides,
subject to customary exclusions, that in the event of a permitted termination by
a Tenant of its Credit Lease as a result of a casualty or condemnation, the
Enhancement Insurer will pay to the Master Servicer on behalf of the Trustee the
"Loss of Rents" (that is, a lump sum payment of all outstanding principal plus,
subject to the limitation below, accrued interest on the Credit Lease Loan). The
Enhancement Insurer is not required to pay interest for a period greater than 75
days past the date of the exercise of a Casualty or Condemnation Right. All of
the Lease Enhancement Policies were issued by Chubb Custom Insurance Company
which, as of the Cut-off Date, was rated "AAA" by Standard & Poor's and "Aaa" by
Moody's. If the Credit Lease permits the Tenant to abate all or a portion of the
rent in the event of a condemnation, the "Loss of Rents" will be in an amount
equal to the portion of any Monthly Rental Payments not made by such Tenant for
the period from the date the abatement commences until the earlier of the date
the abatement ceases or the expiration date of the initial term of such Credit
Lease. The Enhancement Insurer is not required to pay amounts due under the
Credit Lease Loan other than principal and, subject to the limitation above,
accrued interest, and therefore is not required to pay any Prepayment Premium or
Yield Maintenance Charge due thereunder or any amounts the Mortgagor is
obligated to pay thereunder to reimburse the Master Servicer or the Trustee for
outstanding servicing advances.
Each Lease Enhancement Policy contains certain exclusions from coverage,
including loss arising from damage or destruction directly or indirectly caused
by war, insurrection, rebellion, revolution, usurped power, pollutants or
radioactive matter, or from a taking (other than by condemnation).
The Mortgage Loans which are Credit Lease Loans are indicated on Annex A
hereto.
ADDITIONAL MORTGAGE LOAN INFORMATION
THE MORTGAGE POOL. For a detailed presentation of certain of the
characteristics of the Mortgage Loans and the Mortgaged Properties, on an
individual basis, see Annex A-1, A-2 and A-3 hereto. Certain additional
information regarding the Mortgage Loans is contained herein under "--Assignment
of the Mortgage Loans; Repurchases" and "--Representations and Warranties;
Repurchases," and in the Prospectus under "Description of the Trust Funds" and
"Certain Legal Aspects of Mortgage Loans."
Each of the following tables sets forth certain characteristics of the
Mortgage Pool presented, where applicable, as of the Cut-off Date. For purposes
of the tables and Annex A:
(i) References to "DSC Ratio" are references to debt service coverage
ratios. Debt service coverage ratios are used by income property lenders to
measure the ratio of (a) cash currently generated by a property that is
available for debt service (that is, cash that remains after average cost of
non-capital expenses of operation, tenant improvements, leasing commissions
and replacement reserves during the term of the Mortgage Loan) to (b)
required debt service payments. However, debt service coverage ratios only
measure the current, or recent, ability of a property to service mortgage
debt. The DSC Ratio for any Mortgage Loan (other than a Credit Lease Loan)
is the ratio of "Net Cash Flow" produced by the related Mortgaged Property
to the annualized amount of debt service that will be payable under that
Mortgage Loan commencing after the origination date. The Net Cash Flow for a
Mortgaged Property is the "net cash flow" of such Mortgaged Property as set
forth in, or determined by the applicable Mortgage Loan Seller on the basis
of, Mortgaged Property operating statements, generally unaudited, and
certified rent rolls (as applicable) supplied by the related borrower in the
case of multifamily, mixed use, retail, mobile home park, industrial, self
storage and office properties (each a "Rental Property"). In general, the
applicable Mortgage Loan Seller relied on full year operating statements,
rolling 12-month operating statements and/or applicable year-to-date
financial statements, if available, and on rent rolls for all Rental
Properties that were current as of a date not earlier than six months prior
to the respective date of origination in determining Net
S-51
<PAGE>
Cash Flow for the Mortgaged Properties. References to "Cut-off Date DSC
Ratio" are references to the DSC Ratio as of the Cut-off Date.
In general, "net cash flow" is the revenue derived from the use and
operation of a Mortgaged Property less operating expenses (such as
utilities, administrative expenses, repairs and maintenance, tenant
improvement costs, leasing commissions, management fees and advertising),
fixed expenses (such as insurance, real estate taxes and, if applicable,
ground lease payments) and replacement reserves and an allowance for
vacancies and credit losses. Net cash flow does not reflect interest
expenses and non-cash items such as depreciation and amortization, and
generally does not reflect capital expenditures, but does reflect reserves
for replacements and an allowance for vacancies and credit losses.
In determining the "revenue" component of Net Cash Flow for each Rental
Property, the applicable Mortgage Loan Seller generally relied on the most
recent rent roll (as applicable) supplied and, where the actual vacancy
shown thereon and the market vacancy was less than 5.0%, assumed a 5.0%
vacancy in determining revenue from rents, except that in the case of
certain non-Multifamily Properties, space occupied by such anchor or single
tenants or other large creditworthy tenants may have been disregarded in
performing the vacancy adjustment due to the length of the related leases or
creditworthiness of such tenants, in accordance with the respective Mortgage
Loan Seller's underwriting standards. In determining rental revenue for
multifamily, self storage and mobile home park properties, the applicable
Mortgage Loan Seller generally either reviewed rental revenue shown on the
certified rolling 12-month operating statements or annualized the rental
revenue and reimbursement of expenses shown on rent rolls or operating
statements with respect to the prior one to twelve month periods. For the
other Rental Properties, the applicable Mortgage Loan Seller generally
annualized rental revenue shown on the most recent certified rent roll (as
applicable), after applying the vacancy factor, without further regard to
the terms (including expiration dates) of the leases shown thereon. In the
case of hospitality properties, gross receipts were generally determined on
the basis of 12 month trailing historical operating levels shown on the
borrower-supplied operating statements. In the case of residential health
care facilities, receipts were based on historical occupancy levels,
historical operating revenues and the then current occupancy rates. Private
occupancy rates were generally within the then current market ranges and
vacancy levels were generally a minimum of 5%. In general, any non-recurring
items and non-property related revenue were eliminated from the calculation
except in the case of residential health care facilities.
In determining the "expense" component of Net Cash Flow for each
Mortgaged Property, the Mortgage Loan Seller generally relied on full-year
or year-to-date financial statements, rolling 12-month operating statements
and/or year-to-date financial statements supplied by the related borrower,
except that (a) if tax or insurance expense information more current than
that reflected in the financial statements was available, the newer
information was used, (b) property management fees were generally assumed to
be 3.0% to 6.0% of effective gross revenue (except with respect to
hospitality properties, where a minimum of 4.0% of gross receipts was
assumed, and single tenant properties, where fees as low as 1.5% of
effective gross receipts were assumed), (c) assumptions were made with
respect to reserves for leasing commissions, tenant improvement expenses and
capital expenditures and (d) expenses were assumed to include annual
replacement reserves equal to (1) in the case of retail, office, industrial,
and mixed-use properties, not less than $0.04 and not more than $0.60 per
square foot net rentable commercial area, (2) in the case of multifamily
properties, not less than $150 or more than $485 per residential unit per
year, depending on the age and condition of the property, (3) in the case of
hospitality properties, generally 4.0% of the gross revenues received by the
property owner on an ongoing basis, (4) in the case of residential
healthcare facilities, $225 to $355 per bed per year, (5) in the case of the
mobile home parks, not less than $33 or more than $142 per pad per year and
(6) in the case of self storage facilities, not less than $7 or more than
$30 per unit per year. In addition, in some instances, the applicable
Mortgage Loan Seller recharacterized as capital
S-52
<PAGE>
expenditures those items reported by borrowers as operating expenses (thus
increasing "net cash flow") where such Mortgage Loan Seller determined
appropriate.
THE BORROWERS' FINANCIAL INFORMATION USED TO DETERMINE NET CASH FLOW WAS
IN MOST CASES UNAUDITED, AND NEITHER THE MORTGAGE LOAN SELLERS NOR THE
DEPOSITOR VERIFIED THEIR ACCURACY.
(ii) References to "Cut-off Date LTV Ratio" are references to the ratio,
expressed as a percentage, of the Cut-off Date Balance of a Mortgage Loan to
the appraised value of the related Mortgaged Property as shown on the most
recent third-party appraisal thereof available to the related Mortgage Loan
Seller or in the case of two Mortgage Loans, or 4.7%, as determined by an
internal valuation by the related Mortgage Loan Seller.
(iii) References to "Maturity Date LTV Ratio" are references to the
ratio, expressed as a percentage, of the expected balance of a Balloon Loan
on its scheduled maturity date (or ARD Loan on its Anticipated Repayment
Date) (prior to the payment of any Balloon Payment) to the appraised value
of the related Mortgaged Property as shown on the most recent third-party
appraisal thereof available to the related Mortgage Loan Seller prior to the
Cut-off Date or in the case of two Mortgage Loans, or 4.7%, as determined by
an internal valuation by the related Mortgage Loan Seller.
(iv) References to "Loan per Sq Ft, Unit, Bed, Pad or Room" are, for
each Mortgage Loan secured by a lien on a multifamily property (including a
mobile home park), hospitality property or healthcare facility,
respectively, references to the Cut-off Date Balance of such Mortgage Loan
divided by the number of dwelling units, pads, guest rooms or beds,
respectively that the related Mortgaged Property comprises, and, for each
Mortgage Loan secured by a lien on a retail, industrial/ warehouse, self
storage or office property, references to the Cut-off Date Balance of such
Mortgage Loan divided by the net rentable square foot area of the related
Mortgaged Property.
(v) References to "Year Built" are references to the year that a
Mortgaged Property was originally constructed or substantially renovated.
With respect to any Mortgaged Property which was constructed in phases, the
"Year Built" refers to the year that the first phase was originally
constructed.
(vi) References to "weighted averages" are references to averages
weighted on the basis of the Cut-off Date Balances of the related Mortgage
Loans.
(vii) References to "Underwriting Reserves" represent estimated annual
capital costs, as used by the applicable Mortgage Loan Seller in determining
Net Cash Flow.
(viii) References to "Administrative Cost Rate" for each Mortgage Loan
represent the sum of (a) the Master Servicing Fee Rate for such Mortgage
Loan and (b) 0.0062% which percentage represents the sum of the Additional
Servicing Fee Rate and the trustee fee rate with respect to each Mortgage
Loan.
(ix) References to "Remaining Term to Maturity" represent, with respect
to each Mortgage Loan, the number of months remaining from the Cut-off Date
to the stated maturity date (or Anticipated Repayment Date with respect to
each ARD Loan) of such Mortgage Loan.
(x) References to "Remaining Amortization Term" represent, with respect
to each Mortgage Loan, the number of months remaining from the Cut-off Date
to the month in which such Mortgage Loan would fully amortize in accordance
with such loan's amortization schedule without regard to any Balloon
Payment, if any, due on such Mortgage Loan.
(xi) References to "L" represent, with respect to each Mortgage Loan,
the period during which prepayments of principal are prohibited. The number
indicated in the parentheses indicates the duration in years of such period.
References to "X( )" represent the percentage of Prepayment Premium
percentages and the duration such Prepayment Premium is assessed. References
to "O ( )"
S-53
<PAGE>
represent the period for which no (A) Prepayment Premium or Yield
Maintenance Charge is assessed or (B) defeasance can be required. References
to "YMx% ( )" represent the period for which the Prepayment Premium for such
Mortgage Loan is equal to the greater of the Yield Maintenance Charge for
such Mortgage Loan and x% of such Mortgage Loan's outstanding principal
balance. References to "YM ( )" represent the period for which the Yield
Maintenance Charge is assessed.
(xii) References to "D" represent, with respect to each applicable
Mortgage Loan, the right of the related holder of the Mortgage to require
the related borrower, in lieu of a prepayment premium, to pledge to such
holder Defeasance Collateral.
(xiii) References to "D(Borr)" represent, with respect to each
applicable Mortgage Loan, the right of the related borrower to pledge to the
holder of the Mortgage the Defeasance Collateral in lieu of the Prepayment
Premium. For the purposes of the Prospectus Supplement, it is assumed that
the borrower will pay the Prepayment Premium in lieu of the pledge of
Defeasance Collateral for such Mortgage Loan.
(xiv) References to "Occupancy Percentage" are, with respect to any
Mortgaged Property, references to (a) in the case of multifamily properties
and assisted living/congregate care facilities, the percentage of units
rented, (b) in the case of office and retail properties, the percentage of
the net rentable square footage rented, and (c) in the case of self-storage
facilities, either the percentage of the net rentable square footage rented
or the percentage of units rented (depending on borrower reporting).
(xv) References to "Stated Remaining Term" are references to the
remaining term to maturity for each Mortgage Loan (or remaining number of
months to the Anticipated Repayment Date with respect to each ARD Loan).
(xvi) References to "Original Term to Maturity" are references to the
term from origination to maturity for each Mortgage Loan (or the term from
origination to the Anticipated Repayment Date with respect to each ARD
Loan).
(xvii) References to "NAP" indicate that with respect to a particular
category of data, that such data is not applicable.
(xviii) References to "NAV" indicates that, with respect to a particular
category of data, such data is not available.
(xix) References to "Capital Imp. Reserve" are references to funded
reserves escrowed for repairs, replacements and corrections of issues
outlined in the engineering reports.
(xx) References to "Replacement Reserve" are references to funded
reserves escrowed for ongoing items such as repairs and replacements,
including, in the case of hospitality properties, reserves for furniture,
fixtures and equipment. In certain cases, however, the subject reserve will
be subject to a maximum amount, and once such maximum amount is reached,
such reserve will not thereafter be funded, except, in some such cases, to
the extent it is drawn upon.
(xxi) References to "TI/LC Reserve" are references to funded reserves
escrowed for tenant improvement allowances and leasing commissions. In
certain cases, however, the subject reserve will be subject to a maximum
amount, and once such maximum amount is reached, such reserve will not
thereafter be funded, except, in some such cases, to the extent it is drawn
upon.
The sum in any column of any of the following tables may not equal the
indicated total due to rounding.
The DSC Ratio and the Cut-off Date LTV Ratio calculations for the Mortgage
Loans are exclusive of Credit Lease Loans because the Credit Lease Loans were
originated primarily on the basis of the creditworthiness of the related Tenants
or Guarantors.
S-54
<PAGE>
MORTGAGE LOANS BY STATE
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
% BY
AGGREGATE AGGREGATE AVERAGE HIGHEST WTD. AVG.
NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
STATE LOANS BALANCE BALANCE BALANCE BALANCE LTV RATIO(1)
- ---------------------------------- --------------- -------------- --------------- ------------ ------------ ---------------
<S> <C> <C> <C> <C> <C> <C>
AL................................ 5 $ 11,204,868 0.3% $2,240,974 $ 4,987,106 75.4%
AR................................ 4 30,088,767 0.9 7,522,192 13,404,516 62.0
AZ................................ 32 93,179,101 2.7 2,911,847 7,983,000 69.5
CA................................ 115 410,711,080 11.8 3,571,401 16,847,577 72.4
CO................................ 8 19,092,083 0.5 2,386,510 3,597,169 73.8
CT................................ 10 48,929,559 1.4 4,892,956 13,760,326 71.0
DC................................ 4 15,833,952 0.5 3,958,488 5,795,439 73.7
DE................................ 1 2,944,904 0.1 2,944,904 2,944,904 68.5
FL................................ 58 245,528,274 7.1 4,233,246 20,942,733 73.4
GA................................ 31 215,316,073 6.2 6,945,680 64,000,000 68.8
ID................................ 4 7,632,412 0.2 1,908,103 2,447,179 72.0
IL................................ 22 272,580,069 7.8 12,390,003 85,527,649 65.9
IN................................ 13 45,586,870 1.3 3,506,682 11,569,847 77.1
KS................................ 2 4,209,204 0.1 2,104,602 2,464,054 73.9
KY................................ 11 64,038,311 1.8 5,821,665 23,892,525 70.7
LA................................ 11 49,374,203 1.4 4,488,564 12,750,000 75.5
MA................................ 11 27,167,527 0.8 2,469,775 6,892,160 69.4
MD................................ 30 204,785,549 5.9 6,826,185 24,500,000 75.0
ME................................ 1 1,162,826 * 1,162,826 1,162,826 NAP
MI................................ 11 55,715,778 1.6 5,065,071 10,585,153 68.6
MN................................ 6 10,826,662 0.3 1,804,444 4,085,108 74.5
MO................................ 7 41,976,464 1.2 5,996,638 16,277,350 74.2
MS................................ 1 722,827 * 722,827 722,827 77.3
NC................................ 24 118,894,969 3.4 4,953,957 25,328,345 75.6
NE................................ 6 18,486,596 0.5 3,081,099 5,120,000 79.9
NH................................ 1 4,588,484 0.1 4,588,484 4,588,484 78.4
NJ................................ 27 162,975,023 4.7 6,036,112 63,766,163 76.1
NM................................ 1 1,897,834 0.1 1,897,834 1,897,834 73.0
NV................................ 15 78,790,028 2.3 5,252,669 10,585,107 75.6
NY................................ 30 316,853,365 9.1 10,561,779 178,378,814 64.2
OH................................ 14 73,849,600 2.1 5,274,971 22,468,036 71.2
OK................................ 6 12,276,254 0.4 2,046,042 4,356,682 74.4
OR................................ 6 18,837,495 0.5 3,139,582 7,377,559 74.1
PA................................ 21 88,102,130 2.5 4,195,340 14,522,217 74.1
SC................................ 12 33,920,670 1.0 2,826,722 6,402,356 74.7
SD................................ 1 3,475,000 0.1 3,475,000 3,475,000 77.2
TN................................ 15 66,175,711 1.9 4,411,714 17,952,728 73.3
TX................................ 41 357,932,035 10.3 8,730,050 154,000,000 75.4
UT................................ 11 39,038,973 1.1 3,548,998 13,738,707 71.6
VA................................ 22 134,033,928 3.9 6,092,451 21,172,008 73.0
WA................................ 7 19,060,360 0.5 2,722,909 3,746,038 62.5
WI................................ 15 37,410,332 1.1 2,494,022 6,320,000 65.9
WV................................ 2 5,269,960 0.2 2,634,980 2,891,052 64.2
WY................................ 1 4,787,973 0.1 4,787,973 4,787,973 73.7
--- -------------- ----- ------------ ------------ -----
TOTAL/AVG./WTD. AVG./MIN/ MAX..... 676 $3,475,264,083 100.0% $5,140,923 $178,378,814 71.6%
--- -------------- ----- ------------ ------------ -----
--- -------------- ----- ------------ ------------ -----
<CAPTION>
WTD. AVG. MINIMUM MAXIMUM WTD. AVG. WTD. AVG.
CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
STATE DSC RATIO(1) DSC RATIO(1) DSC RATIO(1) RATE(2) RATE
- ---------------------------------- --------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
AL................................ 1.37x 1.29x 1.38x 98.2% 7.36%
AR................................ 1.77 1.26 2.00 97.0 7.47
AZ................................ 1.43 1.19 2.06 93.3 7.57
CA................................ 1.37 1.06 3.53 96.9 7.31
CO................................ 1.34 1.21 1.66 99.1 7.19
CT................................ 1.40 1.25 1.52 98.9 7.33
DC................................ 1.37 1.25 1.51 99.3 7.28
DE................................ 1.45 1.45 1.45 94.0 8.00
FL................................ 1.40 1.21 2.20 97.3 7.31
GA................................ 1.39 1.20 2.55 95.3 7.15
ID................................ 1.35 1.31 1.43 98.8 7.34
IL................................ 1.72 1.20 2.00 90.5 6.97
IN................................ 1.34 1.27 1.57 99.3 7.14
KS................................ 1.52 1.40 1.61 86.1 7.81
KY................................ 1.45 1.31 1.85 94.3 7.48
LA................................ 1.33 1.21 1.49 95.5 7.55
MA................................ 1.37 1.25 1.54 94.5 7.46
MD................................ 1.32 1.21 1.58 95.0 7.10
ME................................ NAP NAP NAP 100.0 7.42
MI................................ 1.38 1.10 1.45 99.2 7.33
MN................................ 1.42 1.31 1.55 98.6 7.05
MO................................ 1.46 1.30 1.98 96.1 7.26
MS................................ 1.31 1.31 1.31 100.0 8.25
NC................................ 1.36 1.25 1.88 93.2 7.32
NE................................ 1.44 1.31 1.59 97.0 7.01
NH................................ 1.26 1.26 1.26 100.0 7.38
NJ................................ 1.33 1.20 1.82 96.5 7.32
NM................................ 1.33 1.33 1.33 96.0 7.50
NV................................ 1.41 1.27 1.57 94.1 7.33
NY................................ 1.38 1.21 2.33 99.1 7.08
OH................................ 1.41 1.21 1.64 92.7 7.27
OK................................ 1.33 1.26 1.40 94.3 7.42
OR................................ 1.29 1.25 1.68 98.6 7.40
PA................................ 1.34 1.18 1.54 97.2 7.32
SC................................ 1.31 1.25 1.41 95.9 7.28
SD................................ 1.25 1.25 1.25 100.0 7.43
TN................................ 1.37 1.19 1.79 96.6 7.38
TX................................ 1.40 1.21 1.72 96.5 7.28
UT................................ 1.31 1.11 1.49 93.7 7.55
VA................................ 1.37 1.25 1.65 94.8 7.26
WA................................ 1.73 1.28 2.29 92.7 7.59
WI................................ 1.43 1.21 2.23 99.9 7.46
WV................................ 1.35 1.30 1.42 95.1 7.48
WY................................ 1.29 1.29 1.29 99.1 7.38
----- ----- ----- ----- ---
TOTAL/AVG./WTD. AVG./MIN/ MAX..... 1.41x 1.06x 3.53 x 95.9% 7.26%
----- ----- ----- ----- ---
----- ----- ----- ----- ---
</TABLE>
- ------------------------
* Less than 0.1%
(1) The DSC Ratio and LTV Ratio information shown above do not reflect the 77
Credit Lease Loans, representing 7.3% of the Initial Pool Balance, which
typically have debt service coverage ratios below 1.20x and loan to value
ratios in excess of 80%.
(2) Occupancy Rates were calculated without reference to Hospitality properties.
S-55
<PAGE>
MORTGAGE LOANS BY PROPERTY TYPE
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
% BY AVERAGE HIGHEST
AGGREGATE AGGREGATE CUT-OFF CUT-OFF WTD. AVG.
PROPERTY NUMBER OF CUT-OFF DATE CUT-OFF DATE DATE DATE CUT-OFF DATE
TYPE LOANS BALANCE BALANCE BALANCE BALANCE LTV RATIO(1)
- ------------------------- --------------- ------------- --------------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Multifamily.............. 228 $1,080,369,433 31.1% $4,738,462 $63,766,163 76.8%
Retail................... 172 945,486,874 27.2 5,497,017 85,527,649 70.7
Office................... 74 709,291,586 20.4 9,585,021 178,378,814 69.6
CTL...................... 77 252,662,868 7.3 3,281,336 15,391,931 NAP
Hotel.................... 45 231,622,284 6.7 5,147,162 23,892,525 65.3
Industrial/W'hse......... 44 130,726,130 3.8 2,971,048 12,218,750 67.1
Health Care.............. 12 65,451,082 1.9 5,454,257 13,404,516 56.7
Self Storage............. 11 24,019,485 0.7 2,183,590 3,295,516 67.9
Mixed Use................ 8 22,086,672 0.6 2,760,834 4,850,614 67.8
Mobile Home Park......... 5 13,547,668 0.4 2,709,534 4,600,000 65.5
--- ------------- ----- ----------- ----------- -----
Total/Avg./Wtd. Avg./Min/
Max:................... 676 $3,475,264,083 100.0% $5,140,923 $178,378,814 71.6%
--- ------------- ----- ----------- ----------- -----
--- ------------- ----- ----------- ----------- -----
<CAPTION>
WTD. AVG. MINIMUM MAXIMUM WTD. AVG. WTD. AVG.
PROPERTY CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
TYPE DSC RATIO(1) DSC RATIO(1) DSC RATIO(1) RATE(2) RATE
- ------------------------- --------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Multifamily.............. 1.32x 1.18x 2.55x 95.3% 7.24%
Retail................... 1.46 1.11 2.00 93.7 7.20
Office................... 1.39 1.06 1.74 98.2 7.08
CTL...................... NAP NAP NAP 100.0 7.45
Hotel.................... 1.52 1.38 3.53 NAP 7.61
Industrial/W'hse......... 1.40 1.24 2.23 98.4 7.36
Health Care.............. 1.86 1.37 2.33 93.5 7.80
Self Storage............. 1.45 1.30 1.82 91.1 7.53
Mixed Use................ 1.41 1.30 1.57 94.1 7.63
Mobile Home Park......... 1.55 1.14 2.06 97.2 7.11
----- ----- ----- ----- ---
Total/Avg./Wtd. Avg./Min/
Max:................... 1.41x 1.06x 3.53x 95.9% 7.26%
----- ----- ----- ----- ---
----- ----- ----- ----- ---
</TABLE>
- ------------------------
(1) The DSC Ratio and LTV Ratio information shown above do not reflect the 77
Credit Lease Loans, representing 7.3% of the Initial Pool Balance, which
typically have debt service coverage ratios below 1.20x and loan to value
ratios in excess of 80%.
(2) Occupancy Rates were calculated without reference to Hospitality properties.
S-56
<PAGE>
CUT-OFF DATE DSC RATIOS
(ALL MORTGAGE LOANS OTHER THAN CREDIT LEASE LOANS)
<TABLE>
<CAPTION>
RANGE OF % BY
CUT-OFF DATE AGGREGATE AGGREGATE AVERAGE HIGHEST WTD. AVG. WTD. AVG.
DSC NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
RATIOS(X) LOANS BALANCE BALANCE BALANCE BALANCE LTV RATIO DSC RATIO
- --------------------- --------------- ------------- --------------- ------------ ------------ --------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
1.06-1.09............ 1 $ 1,284,408 * $1,284,408 $1,284,408 69.4% 1.06x
1.10-1.14............ 3 5,692,039 0.2% 1,897,346 2,141,612 65.3 1.11
1.15-1.19............ 4 14,236,510 0.4 3,559,128 7,983,000 80.4 1.19
1.20-1.24............ 33 227,079,432 7.0 6,881,195 20,806,342 77.5 1.22
1.25-1.29............ 132 663,213,379 20.6 5,024,344 25,328,345 75.2 1.27
1.30-1.34............ 124 744,351,686 23.1 6,002,836 178,378,814 72.6 1.32
1.35-1.39............ 74 259,799,904 8.1 3,510,810 22,168,012 73.8 1.37
1.40-1.44............ 79 442,556,325 13.7 5,601,979 64,000,000 69.9 1.41
1.45-1.49............ 41 137,127,243 4.3 3,344,567 9,745,742 71.1 1.47
1.50-1.54............ 40 325,568,830 10.1 8,139,221 154,000,000 71.2 1.51
1.55-1.59............ 20 68,824,027 2.1 3,441,201 10,092,322 71.1 1.57
1.60-1.64............ 8 32,691,561 1.0 4,086,445 7,589,517 62.5 1.62
1.65-1.69............ 12 36,937,321 1.1 3,078,110 8,050,981 65.7 1.67
1.70-1.74............ 8 25,695,243 0.8 3,211,905 9,717,397 63.9 1.72
1.75-1.79............ 2 6,202,408 0.2 3,101,204 3,213,140 54.4 1.79
1.80-1.84............ 2 6,428,281 0.2 3,214,140 3,239,973 65.9 1.81
1.85-1.89............ 2 4,161,236 0.1 2,080,618 2,416,636 56.4 1.87
1.90-1.94............ 1 85,527,649 2.7 85,527,649 85,527,649 61.5 1.91
1.95-1.99............ 1 3,435,045 0.1 3,435,045 3,435,045 74.7 1.98
2.00-2.04............ 3 94,764,467 2.9 31,588,156 77,863,877 57.3 2.00
2.05-2.09............ 2 6,290,877 0.2 3,145,438 4,093,771 47.3 2.06
2.20-2.24............ 3 14,957,968 0.5 4,985,989 9,250,000 55.4 2.21
2.25-2.29............ 1 3,746,038 0.1 3,746,038 3,746,038 47.4 2.29
2.30-2.34............ 1 8,951,209 0.3 8,951,209 8,951,209 20.8 2.33
2.50-3.53............ 2 3,078,128 0.1 1,539,064 2,588,128 38.3 3.37
--- ------------- ----- ------------ ------------ --- ---
Total/Avg/Wtd. Avg./
Min/Max:........... 599 $3,222,601,214 100.0% $5,379,969 1$78,378,814 71.6% 1.41x
--- ------------- ----- ------------ ------------ --- ---
--- ------------- ----- ------------ ------------ --- ---
<CAPTION>
RANGE OF
CUT-OFF DATE MINIMUM MAXIMUM WTD. AVG. WTD. AVG.
DSC CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
RATIOS(X) DSC RATIO DSC RATIO RATE(1) RATE
- --------------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
1.06-1.09............ 1.06x 1.06x 100.0% 7.69%
1.10-1.14............ 1.10 1.14 97.6 7.45
1.15-1.19............ 1.18 1.19 90.0 8.10
1.20-1.24............ 1.20 1.24 93.5 7.34
1.25-1.29............ 1.25 1.29 94.9 7.29
1.30-1.34............ 1.30 1.34 97.3 7.15
1.35-1.39............ 1.35 1.39 95.2 7.30
1.40-1.44............ 1.40 1.44 96.6 7.27
1.45-1.49............ 1.45 1.49 95.9 7.35
1.50-1.54............ 1.50 1.54 98.4 7.22
1.55-1.59............ 1.55 1.59 94.8 7.22
1.60-1.64............ 1.60 1.64 94.7 7.46
1.65-1.69............ 1.65 1.69 97.2 7.30
1.70-1.74............ 1.70 1.74 97.4 7.63
1.75-1.79............ 1.79 1.79 95.9 7.39
1.80-1.84............ 1.81 1.82 93.5 7.43
1.85-1.89............ 1.85 1.88 94.5 8.09
1.90-1.94............ 1.91 1.91 84.8 6.75
1.95-1.99............ 1.98 1.98 93.3 7.88
2.00-2.04............ 2.00 2.00 89.3 6.92
2.05-2.09............ 2.05 2.06 99.0 7.01
2.20-2.24............ 2.20 2.23 93.4 7.33
2.25-2.29............ 2.29 2.29 89.8 7.97
2.30-2.34............ 2.33 2.33 98.0 7.89
2.50-3.53............ 2.55 3.53 95.2 7.54
--- --- ----- ---
Total/Avg/Wtd. Avg./
Min/Max:........... 1.06x 3.53x 95.5% 7.24%
--- --- ----- ---
--- --- ----- ---
</TABLE>
The weighted average Cut-off Date DSC Ratio is 1.41x.
- ------------------------------
* Less than 0.1%.
(1) Occupancy Rates were calculated without reference to Hospitality properties.
S-57
<PAGE>
CUT-OFF DATE LTV RATIOS
(ALL MORTGAGE LOANS OTHER THAN CREDIT LEASE LOANS)
<TABLE>
<CAPTION>
RANGE OF % BY AVERAGE HIGHEST
CUT-OFF DATE AGGREGATE AGGREGATE CUT-OFF CUT-OFF WTD. AVG. WTD. AVG.
LTV NUMBER OF CUT-OFF DATE CUT-OFF DATE DATE DATE CUT-OFF DATE CUT-OFF DATE
RATIOS(%) LOANS BALANCE BALANCE BALANCE BALANCE LTV RATIO DSC RATIO
- -------------- --------------- ------------- --------------- ----------- ----------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
20.01-25.00... 1 $ 8,951,209 0.3% $8,951,209 $ 8,951,209 20.8% 2.33x
25.01-30.00... 1 1,059,091 * 1,059,091 1,059,091 29.8 1.29
30.01-35.00... 2 3,986,074 0.1 1,993,037 3,496,074 30.8 2.07
35.01-40.00... 4 8,536,223 0.3 2,134,056 2,588,128 38.3 2.36
40.01-45.00... 1 1,546,387 * 1,546,387 1,546,387 44.2 1.67
45.01-50.00... 9 36,860,212 1.1 4,095,579 6,900,000 48.4 1.67
50.01-55.00... 8 16,101,844 0.5 2,012,730 3,492,968 53.1 1.66
55.01-60.00... 30 199,650,505 6.2 6,655,017 77,863,877 57.6 1.72
60.01-65.00... 46 477,388,372 14.8 10,378,008 178,378,814 62.7 1.50
65.01-70.00... 79 261,679,086 8.1 3,312,393 23,892,525 68.0 1.41
70.01-75.00... 231 1,026,137,621 31.8 4,442,154 24,500,000 73.5 1.36
75.01-80.00... 172 1,113,095,911 34.5 6,471,488 154,000,000 78.3 1.33
80.01-85.00... 15 67,608,679 2.1 4,507,245 17,697,000 81.9 1.29
--- ------------- ----- ----------- ----------- --- ---
TOTAL/AVG/
WTD. AVG./
MIN/MAX:.... 599 $3,222,601,214 100.0% $5,379,969 $178,378,814 71.6% 1.41x
--- ------------- ----- ----------- ----------- --- ---
--- ------------- ----- ----------- ----------- --- ---
<CAPTION>
RANGE OF
CUT-OFF DATE MINIMUM MAXIMUM WTD. AVG. WTD. AVG.
LTV CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
RATIOS(%) DSC RATIO DSC RATIO RATE(1) RATE
- -------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
20.01-25.00... 2.33x 2.33x 98.0% 7.89%
25.01-30.00... 1.29 1.29 95.5 7.33
30.01-35.00... 2.00 2.55 90.0 7.59
35.01-40.00... 1.42 3.53 97.1 7.61
40.01-45.00... 1.67 1.67 100.0 7.38
45.01-50.00... 1.26 2.29 93.2 7.44
50.01-55.00... 1.38 2.23 97.2 7.58
55.01-60.00... 1.14 2.00 92.1 7.17
60.01-65.00... 1.10 2.20 95.3 6.99
65.01-70.00... 1.06 1.88 95.8 7.50
70.01-75.00... 1.20 1.98 95.6 7.33
75.01-80.00... 1.11 1.72 96.1 7.18
80.01-85.00... 1.18 1.57 94.5 7.59
--- --- ----- ---
TOTAL/AVG/
WTD. AVG./
MIN/MAX:.... 1.06x 3.53x 95.5% 7.24%
--- --- ----- ---
--- --- ----- ---
</TABLE>
The weighted average Cut-off Date LTV Ratio is 71.6%.
- ------------------------------
* Less than 0.1%.
(1) Occupancy Rates were calculated without reference to Hospitality properties.
S-58
<PAGE>
MATURITY DATE LTV RATIOS
(BALLOON AND ARD LOANS ONLY)
<TABLE>
<CAPTION>
RANGE OF
MATURITY % BY AVERAGE HIGHEST
DATE AGGREGATE AGGREGATE CUT-OFF CUT-OFF WTD. AVG.
LTV NUMBER OF CUT-OFF DATE CUT-OFF DATE DATE DATE CUT-OFF DATE
RATIOS(%) LOANS BALANCE BALANCE BALANCE BALANCE LTV RATIO(1)
- ------------------------- --------------- ------------- --------------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C>
15.01- 20.00............. 2 $ 5,180,728 0.2% $2,590,364 $ 3,010,493 NAP
20.01- 25.00............. 2 3,306,563 0.1 1,653,281 2,247,472 42.4%
25.01- 30.00............. 5 13,544,379 0.5 2,708,876 4,119,423 47.6
30.01- 35.00............. 13 38,188,880 1.4 2,937,606 5,774,543 63.4
35.01- 40.00............. 8 169,857,575 6.0 21,232,197 154,000,000 74.1
40.01- 45.00............. 18 120,440,273 4.3 6,691,126 15,391,931 59.5
45.01- 50.00............. 37 161,492,732 5.7 4,364,668 21,840,552 63.2
50.01- 55.00............. 33 187,077,988 6.6 5,669,030 64,000,000 64.1
55.01- 60.00............. 66 340,306,718 12.1 5,156,162 77,863,877 67.4
60.01- 65.00............. 137 678,165,239 24.0 4,950,111 85,527,649 72.3
65.01- 70.00............. 184 921,845,663 32.7 5,010,031 25,328,345 76.9
70.01- 74.33............. 36 183,663,552 6.5 5,101,765 17,697,000 79.5
--- ------------- ----- ----------- ----------- -----
Total/Avg/Wtd. Avg./Min/
Max:................... 541 $2,823,070,289 100.0% $5,218,245 $154,000,000 72.3%
--- ------------- ----- ----------- ----------- -----
--- ------------- ----- ----------- ----------- -----
<CAPTION>
RANGE OF
MATURITY
DATE WTD. AVG. MINIMUM MAXIMUM WTD. AVG. WTD. AVG.
LTV CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
RATIOS(%) DSC RATIO(1) DSC RATIO(1) DSC RATIO(1) RATE(2) RATE
- ------------------------- --------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
15.01- 20.00............. NAP NAP NAP 100.0% 7.26%
20.01- 25.00............. 1.36x 1.29x 1.40x 95.5 7.51
25.01- 30.00............. 1.59 1.31 2.00 92.9 7.57
30.01- 35.00............. 1.86 1.21 3.53 99.7 7.39
35.01- 40.00............. 1.52 1.21 2.29 99.2 7.11
40.01- 45.00............. 1.58 1.18 2.23 99.3 7.39
45.01- 50.00............. 1.50 1.25 2.20 98.2 7.42
50.01- 55.00............. 1.45 1.25 1.82 94.8 7.09
55.01- 60.00............. 1.52 1.19 2.00 93.9 7.24
60.01- 65.00............. 1.43 1.20 1.91 94.0 7.26
65.01- 70.00............. 1.33 1.11 1.64 95.4 7.18
70.01- 74.33............. 1.29 1.19 1.72 93.5 7.46
----- ----- ----- ----- ---
Total/Avg/Wtd. Avg./Min/
Max:................... 1.41x 1.11x 3.53x 95.3% 7.24%
----- ----- ----- ----- ---
----- ----- ----- ----- ---
</TABLE>
The weighted average Maturity Date LTV Ratio is 59.6%.
- ------------------------------
(1) The DSC Ratio and LTV Ratio information shown above do not reflect the 77
Credit Lease Loans, representing 7.3% of the Initial Pool Balance, which
typically have debt service coverage ratios below 1.20x and loan to value
ratios in excess of 80%.
(2) Occupancy Rates were calculated without reference to Hospitality properties.
S-59
<PAGE>
MORTGAGE RATES
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
% BY AVERAGE HIGHEST
RANGE OF AGGREGATE AGGREGATE CUT-OFF CUT-OFF WTD. AVG.
MORTGAGE NUMBER OF CUT-OFF DATE CUT-OFF DATE DATE DATE CUT-OFF DATE
RATES(%) LOANS BALANCE BALANCE BALANCE BALANCE LTV RATIO(1)
- --------------------------- --------------- ------------- --------------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C>
6.500-6.749................ 1 $ 4,191,650 0.1% $4,191,650 $ 4,191,650 55.9%
6.750-6.999................ 64 711,653,834 20.5 11,119,591 178,378,814 67.8
7.000-7.249................ 205 1,182,866,302 34.0 5,770,080 154,000,000 74.5
7.250-7.499................ 199 866,023,184 24.9 4,351,875 63,766,163 73.4
7.500-7.749................ 116 386,643,861 11.1 3,333,137 23,892,525 69.0
7.750-7.999................ 56 184,376,308 5.3 3,292,434 13,404,516 65.9
8.000-8.249................ 19 79,372,990 2.3 4,177,526 17,697,000 73.1
8.250-8.499................ 4 14,753,036 0.4 3,688,259 11,283,801 67.9
8.500-8.749................ 4 14,839,398 0.4 3,709,850 8,842,858 72.2
8.750-8.999................ 1 2,382,514 0.1 2,382,514 2,382,514 62.7
9.000-9.249................ 7 28,161,007 0.8 4,023,001 6,251,342 72.9
--- ------------- ----- ----------- ----------- ---
Total/Avg/Wtd.
Avg./Min/Max:............ 676 $3,475,264,083 100.0% $5,140,923 $178,378,814 71.6%
--- ------------- ----- ----------- ----------- ---
--- ------------- ----- ----------- ----------- ---
<CAPTION>
RANGE OF WTD. AVG. MINIMUM MAXIMUM WTD. AVG. WTD. AVG.
MORTGAGE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
RATES(%) DSC RATIO(1) DSC RATIO(1) DSC RATIO(1) RATE(2) RATE
- --------------------------- --------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
6.500-6.749................ 1.55x 1.55x 1.55x 100.0% 6.71%
6.750-6.999................ 1.49 1.21 2.06 94.5 6.82
7.000-7.249................ 1.38 1.10 2.20 96.6 7.11
7.250-7.499................ 1.35 1.14 2.23 96.2 7.36
7.500-7.749................ 1.41 1.06 3.53 96.6 7.59
7.750-7.999................ 1.55 1.11 2.33 96.2 7.87
8.000-8.249................ 1.33 1.19 1.72 89.3 8.11
8.250-8.499................ 1.37 1.31 1.40 100.0 8.34
8.500-8.749................ 1.34 1.18 1.88 92.5 8.62
8.750-8.999................ 1.41 1.41 1.41 NAP 8.88
9.000-9.249................ 1.24 1.20 1.29 99.8 9.12
--- --- --- ----- ---
Total/Avg/Wtd.
Avg./Min/Max:............ 1.41x 1.06x 3.53x 95.9% 7.26%
--- --- --- ----- ---
--- --- --- ----- ---
</TABLE>
The weighted average Mortgage Rate is 7.257%.
- ------------------------------
(1) The DSC Ratio and LTV Ratio information shown above do not reflect the 77
Credit Lease Loans, representing 7.3% of the Initial Pool Balance, which
typically have debt service coverage ratios below 1.20x and loan to value
ratios in excess of 80%.
(2) Occupancy Rates were calculated without reference to Hospitality properties.
S-60
<PAGE>
ORIGINAL TERMS TO MATURITY
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
RANGE OF
ORIGINAL % BY AVERAGE HIGHEST
TERMS AGGREGATE AGGREGATE CUT-OFF CUT-OFF WTD. AVG.
TO MATURITY NUMBER OF CUT-OFF DATE CUT-OFF DATE DATE DATE CUT-OFF DATE
(MONTHS) LOANS BALANCE BALANCE BALANCE BALANCE LTV RATIO(1)
- ------------------------- --------------- ------------- --------------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C>
49- 60................... 4 $ 35,718,840 1.0% $8,929,710 $21,840,552 63.4%
61- 72................... 1 6,990,558 0.2 6,990,558 6,990,558 69.9
73- 84................... 21 123,601,766 3.6 5,885,798 22,468,036 71.6
97-108................... 1 85,527,649 2.5 85,527,649 85,527,649 61.5
109-120.................. 428 1,787,913,328 51.4 4,177,368 25,328,345 73.5
121-132.................. 3 91,032,028 2.6 30,344,009 77,863,877 59.3
133-144.................. 4 30,542,941 0.9 7,635,735 22,168,012 78.4
145-156.................. 3 176,472,872 5.1 58,824,291 154,000,000 75.8
157-168.................. 1 2,141,612 0.1 2,141,612 2,141,612 63.0
169-180.................. 65 331,782,734 9.5 5,104,350 64,000,000 68.8
181-192.................. 6 235,736,889 6.8 39,289,481 178,378,814 66.3
193-204.................. 2 4,551,317 0.1 2,275,658 2,843,054 72.3
205-216.................. 2 2,839,724 0.1 1,419,862 1,426,496 NAP
217-228.................. 4 7,158,468 0.2 1,789,617 2,718,069 NAP
229-240.................. 94 316,335,224 9.1 3,365,268 15,391,931 66.0
241-252.................. 5 22,623,360 0.7 4,524,672 6,251,342 NAP
253-264.................. 1 11,283,801 0.3 11,283,801 11,283,801 NAP
277-288.................. 2 2,626,382 0.1 1,313,191 1,362,341 NAP
289-300.................. 17 68,513,258 2.0 4,030,192 12,469,243 74.1
301-312.................. 1 13,760,326 0.4 13,760,326 13,760,326 NAP
349-360.................. 11 118,111,008 3.4 10,737,364 63,766,163 77.5
--- ------------- ----- ----------- ----------- -----
Total/Avg/Wtd. Avg./Min/
Max:................... 676 $3,475,264,083 100.0% $5,140,923 $178,378,814 71.6%
--- ------------- ----- ----------- ----------- -----
--- ------------- ----- ----------- ----------- -----
<CAPTION>
RANGE OF
ORIGINAL
TERMS WTD. AVG. MINIMUM MAXIMUM WTD. AVG. WTD. AVG.
TO MATURITY CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
(MONTHS) DSC RATIO(1) DSC RATIO(1) DSC RATIO(1) RATE(2) RATE
- ------------------------- --------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
49- 60................... 1.44x 1.21x 1.56x 90.9% 7.53%
61- 72................... 1.32 1.32 1.32 100.0 7.29
73- 84................... 1.37 1.20 2.00 95.1 7.24
97-108................... 1.91 1.91 1.91 84.8 6.75
109-120.................. 1.37 1.11 3.53 95.2 7.31
121-132.................. 1.91 1.28 2.00 89.7 6.82
133-144.................. 1.34 1.24 1.37 96.8 7.15
145-156.................. 1.48 1.26 1.50 99.7 7.03
157-168.................. 1.10 1.10 1.10 100.0 7.06
169-180.................. 1.38 1.06 2.23 96.7 7.21
181-192.................. 1.32 1.25 1.46 98.6 6.94
193-204.................. 1.33 1.26 1.45 98.0 7.55
205-216.................. NAP NAP NAP 100.0 7.28
217-228.................. NAP NAP NAP 100.0 7.21
229-240.................. 1.49 1.19 2.33 98.6 7.36
241-252.................. NAP NAP NAP 100.0 8.96
253-264.................. NAP NAP NAP 100.0 8.34
277-288.................. NAP NAP NAP 100.0 7.88
289-300.................. 1.33 1.18 2.55 97.7 7.56
301-312.................. NAP NAP NAP 100.0 7.13
349-360.................. 1.32 1.21 1.68 96.2 7.34
----- ----- ----- ----- ---
Total/Avg/Wtd. Avg./Min/
Max:................... 1.41x 1.06x 3.53x 95.9% 7.26%
----- ----- ----- ----- ---
----- ----- ----- ----- ---
</TABLE>
The weighted average original term to maturity is 155 months.
- ------------------------------
(1) The DSC Ratio and LTV Ratio information shown above do not reflect the 77
Credit Lease Loans, representing 7.3% of the Initial Pool Balance, which
typically have debt service coverage ratios below 1.20x and loan to value
ratios in excess of 80%.
(2) Occupancy Rates are calculated without reference to Hospitality properties.
S-61
<PAGE>
REMAINING TERMS TO MATURITY
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
RANGE OF
REMAINING % BY
TERMS TO AGGREGATE AGGREGATE AVERAGE HIGHEST WTD. AVG.
MATURITY NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
(MONTHS) LOANS BALANCE BALANCE BALANCE BALANCE LTV RATIO(1)
- ---------------------------------- --------------- -------------- --------------- ------------ ------------ ---------------
<S> <C> <C> <C> <C> <C> <C>
49- 60............................ 4 $ 35,718,840 1.0% $8,929,710 $ 21,840,552 63.4%
61- 72............................ 1 6,990,558 0.2 6,990,558 6,990,558 69.9
73- 84............................ 21 123,601,766 3.6 5,885,798 22,468,036 71.6
97-108............................ 1 85,527,649 2.5 85,527,649 85,527,649 61.5
109-120........................... 428 1,787,913,328 51.4 4,177,368 25,328,345 73.5
121-132........................... 3 91,032,028 2.6 30,344,009 77,863,877 59.3
133-144........................... 4 30,542,941 0.9 7,635,735 22,168,012 78.4
145-156........................... 3 176,472,872 5.1 58,824,291 154,000,000 75.8
157-168........................... 2 2,636,471 0.1 1,318,235 2,141,612 63.0
169-180........................... 68 382,401,320 11.0 5,623,549 64,000,000 69.6
181-192........................... 2 184,623,444 5.3 92,311,722 178,378,814 63.9
193-204........................... 2 4,551,317 0.1 2,275,658 2,843,054 72.3
205-216........................... 2 2,839,724 0.1 1,419,862 1,426,496 NAP
217-228........................... 9 17,092,595 0.5 1,899,177 3,614,562 NAP
229-240........................... 89 306,401,097 8.8 3,442,709 15,391,931 66.0
241-252........................... 5 22,623,360 0.7 4,524,672 6,251,342 NAP
253-264........................... 1 11,283,801 0.3 11,283,801 11,283,801 NAP
277-288........................... 2 2,626,382 0.1 1,313,191 1,362,341 NAP
289-300........................... 18 82,273,585 2.4 4,570,755 13,760,326 74.1
349-360........................... 11 118,111,008 3.4 10,737,364 63,766,163 77.5
--- -------------- ----- ------------ ------------ -----
Total/Avg/Wtd. Avg./Min/Max:...... 676 $3,475,264,083 100.0% $5,140,923 $178,378,814 71.6%
--- -------------- ----- ------------ ------------ -----
--- -------------- ----- ------------ ------------ -----
<CAPTION>
RANGE OF
REMAINING
TERMS TO WTD. AVG. MINIMUM MAXIMUM WTD. AVG. WTD. AVG.
MATURITY CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
(MONTHS) DSC RATIO(1) DSC RATIO(1) DSC RATIO(1) RATE(2) RATE
- ---------------------------------- --------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
49- 60............................ 1.44x 1.21x 1.56x 90.9% 7.53%
61- 72............................ 1.32 1.32 1.32 100.0 7.29
73- 84............................ 1.37 1.20 2.00 95.1 7.24
97-108............................ 1.91 1.91 1.91 84.8 6.75
109-120........................... 1.37 1.11 3.53 95.2 7.31
121-132........................... 1.91 1.28 2.00 89.7 6.82
133-144........................... 1.34 1.24 1.37 96.8 7.15
145-156........................... 1.48 1.26 1.50 99.7 7.03
157-168........................... 1.10 1.10 1.10 100.0 7.06
169-180........................... 1.37 1.06 2.23 96.3 7.23
181-192........................... 1.32 1.32 1.45 99.7 6.83
193-204........................... 1.33 1.26 1.45 98.0 7.55
205-216........................... NAP NAP NAP 100.0 7.28
217-228........................... NAP NAP NAP 100.0 7.34
229-240........................... 1.49 1.19 2.33 98.5 7.35
241-252........................... NAP NAP NAP 100.0 8.96
253-264........................... NAP NAP NAP 100.0 8.34
277-288........................... NAP NAP NAP 100.0 7.88
289-300........................... 1.33 1.18 2.55 98.1 7.49
349-360........................... 1.32 1.21 1.68 96.2 7.34
----- ----- ----- ----- ---
Total/Avg/Wtd. Avg./Min/Max:...... 1.41x 1.06x 3.53x 95.9% 7.26%
----- ----- ----- ----- ---
----- ----- ----- ----- ---
</TABLE>
The weighted average remaining term to maturity is 152 months.
- ----------------------------------
(1) The DSC Ratio and LTV Ratio information shown above do not reflect the 77
Credit Lease Loans, representing 7.3% of the Initial Pool Balance, which
typically have debt service coverage ratios below 1.20x and loan to value
ratios in excess of 80%.
(2) Occupancy Rates were calculated without reference to Hospitality properties.
S-62
<PAGE>
CUT-OFF DATE BALANCES
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
% BY
RANGE OF AGGREGATE AGGREGATE AVERAGE HIGHEST WTD. AVG.
CUT-OFF DATE NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
BALANCES($) LOANS BALANCE BALANCE BALANCE BALANCE LTV RATIO(1)
- --------------------------- --------------- -------------- --------------- ------------ ------------ ---------------
<S> <C> <C> <C> <C> <C> <C>
2,000,000 and below...... 204 $ 288,379,836 8.3% $ 1,413,627 $ 1,997,735 69.6%
2,000,001- 4,000,000.... 234 659,943,734 19.0 2,820,272 4,000,000 71.3
4,000,001- 6,000,000.... 90 442,811,795 12.7 4,920,131 5,993,028 72.9
6,000,001- 8,000,000.... 64 436,414,232 12.6 6,818,972 7,983,000 73.2
8,000,001- 10,000,000.... 24 219,575,484 6.3 9,148,979 9,968,199 72.2
10,000,001- 12,000,000.... 13 143,137,620 4.1 11,010,586 11,980,750 76.9
12,000,001- 14,000,000.... 18 232,102,189 6.7 12,894,566 13,770,454 73.2
14,000,001- 16,000,000.... 7 103,679,200 3.0 14,811,314 15,391,931 74.7
16,000,001- 18,000,000.... 6 102,564,937 3.0 17,094,156 17,952,728 75.6
18,000,001- 20,000,000.... 1 20,000,000 0.6 20,000,000 20,000,000 76.5
20,000,001- 22,000,000.... 4 84,761,635 2.4 21,190,409 21,840,552 72.5
22,000,001- 24,000,000.... 3 68,528,573 2.0 22,842,858 23,892,525 73.9
24,000,001- 26,000,000.... 2 49,828,345 1.4 24,914,172 25,328,345 75.4
62,000,001- 64,000,000.... 2 127,766,163 3.7 63,883,082 64,000,000 70.3
76,000,001- 78,000,000.... 1 77,863,877 2.2 77,863,877 77,863,877 58.8
84,000,001- 86,000,000.... 1 85,527,649 2.5 85,527,649 85,527,649 61.5
152,000,001-154,000,000.... 1 154,000,000 4.4 154,000,000 154,000,000 76.2
178,000,001-180,000,000.... 1 178,378,814 5.1 178,378,814 178,378,814 63.7
--- -------------- ----- ------------ ------------ ---
Total/Avg/Wtd. Avg./Min/
Max:..................... 676 $3,475,264,083 100.0% $ 5,140,923 $178,378,814 71.6%
--- -------------- ----- ------------ ------------ ---
--- -------------- ----- ------------ ------------ ---
<CAPTION>
RANGE OF WTD. AVG. MINIMUM MAXIMUM WTD. AVG. WTD. AVG.
CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
BALANCES($) DSC RATIO(1) DSC RATIO(1) DSC RATIO(1) RATE(2) RATE
- --------------------------- --------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
2,000,000 and below...... 1.38x 1.06x 2.55x 97.6% 7.41%
2,000,001- 4,000,000.... 1.42 1.10 3.53 96.5 7.38
4,000,001- 6,000,000.... 1.38 1.20 2.06 96.5 7.40
6,000,001- 8,000,000.... 1.35 1.19 1.68 94.9 7.33
8,000,001- 10,000,000.... 1.43 1.21 2.33 95.4 7.37
10,000,001- 12,000,000.... 1.31 1.20 1.57 97.8 7.35
12,000,001- 14,000,000.... 1.36 1.21 2.00 94.0 7.22
14,000,001- 16,000,000.... 1.32 1.26 1.41 96.6 7.18
16,000,001- 18,000,000.... 1.30 1.21 1.51 94.9 7.33
18,000,001- 20,000,000.... 1.21 1.21 1.21 97.3 6.85
20,000,001- 22,000,000.... 1.34 1.21 1.53 93.9 7.16
22,000,001- 24,000,000.... 1.40 1.37 1.42 94.9 7.30
24,000,001- 26,000,000.... 1.28 1.26 1.29 91.6 6.89
62,000,001- 64,000,000.... 1.35 1.30 1.40 96.6 7.05
76,000,001- 78,000,000.... 2.00 2.00 2.00 88.5 6.75
84,000,001- 86,000,000.... 1.91 1.91 1.91 84.8 6.75
152,000,001-154,000,000.... 1.50 1.50 1.50 100.0 7.04
178,000,001-180,000,000.... 1.32 1.32 1.32 100.0 6.83
--- --- --- ----- ---
Total/Avg/Wtd. Avg./Min/
Max:..................... 1.41x 1.06x 3.53x 95.9% 7.26%
--- --- --- ----- ---
--- --- --- ----- ---
</TABLE>
The average Cut-off Date Balance is $5,140,923.
- ----------------------------------
(1) The DSC Ratio and LTV Ratio information shown above do not reflect the 77
Credit Lease Loans, representing 7.3% of the Initial Pool Balance, which
typically have debt service coverage ratios below 1.20x and loan to value
ratios in excess of 80%.
(2) Occupancy Rates were calculated without reference to Hospitality properties.
S-63
<PAGE>
REMAINING AMORTIZATION TERMS
(ALL MORTGAGE LOANS OTHER THAN INTEREST-ONLY MORTGAGE LOANS)
<TABLE>
<CAPTION>
% BY
REMAINING AGGREGATE AGGREGATE AVERAGE HIGHEST WTD. AVG.
AMORTIZATION NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
TERM (MONTHS) LOANS BALANCE BALANCE BALANCE BALANCE LTV RATIO(1)
- ------------------------------- --------------- --------------- --------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
109-120........................ 1 $ 1,666,979 0.1% $ 1,666,979 $ 1,666,979 NAP
133-144........................ 2 6,277,935 0.2 3,138,967 4,121,707 73.9%
157-168........................ 2 2,636,471 0.1 1,318,235 2,141,612 63.0
169-180........................ 20 38,396,214 1.2 1,919,811 5,467,636 59.8
181-192........................ 2 332,378,814 10.0 166,189,407 178,378,814 69.5
193-204........................ 2 4,551,317 0.1 2,275,658 2,843,054 72.3
205-216........................ 1 1,413,228 * 1,413,228 1,413,228 NAP
217-228........................ 8 13,478,033 0.4 1,684,754 2,718,069 NAP
229-240........................ 74 231,077,727 7.0 3,122,672 21,840,552 62.9
241-252........................ 6 24,198,360 0.7 4,033,060 6,251,342 67.7
253-264........................ 5 19,459,923 0.6 3,891,985 11,283,801 63.6
265-276........................ 2 9,978,644 0.3 4,989,322 6,968,151 72.6
277-288........................ 7 16,725,874 0.5 2,389,411 4,119,423 NAP
289-300........................ 132 483,399,125 14.6 3,662,115 23,892,525 67.5
301-312........................ 5 62,536,008 1.9 12,507,202 15,391,931 NAP
313-324........................ 6 36,947,585 1.1 6,157,931 12,443,168 71.3
325-336........................ 4 15,085,772 0.5 3,771,443 5,394,497 69.9
349-360........................ 395 2,011,664,549 60.7 5,092,822 64,000,000 74.7
--- --------------- ----- ------------- ------------- -----
Total/Avg/Wtd. Avg./Min/
Max:......................... 674 $ 3,311,872,557 100.0% $ 4,913,758 $ 178,378,814 72.2%
--- --------------- ----- ------------- ------------- -----
--- --------------- ----- ------------- ------------- -----
<CAPTION>
REMAINING WTD. AVG. MINIMUM MAXIMUM WTD. AVG. WTD. AVG.
AMORTIZATION CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
TERM (MONTHS) DSC RATIO(1) DSC RATIO(1) DSC RATIO(1) RATE(2) RATE
- ------------------------------- --------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
109-120........................ NAP NAP NAP 100.0% 7.56%
133-144........................ 1.27x 1.24x 1.32x 100.0 7.32
157-168........................ 1.10 1.10 1.10 100.0 7.06
169-180........................ 1.44 1.06 2.23 99.7 7.60
181-192........................ 1.40 1.32 1.50 100.0 6.93
193-204........................ 1.33 1.26 1.45 98.0 7.55
205-216........................ NAP NAP NAP 100.0 7.34
217-228........................ NAP NAP NAP 100.0 7.36
229-240........................ 1.54 1.19 2.33 98.2 7.46
241-252........................ 1.28 1.28 1.28 100.0 8.85
253-264........................ 1.53 1.41 1.65 100.0 8.17
265-276........................ 1.28 1.28 1.28 95.8 7.12
277-288........................ NAP NAP NAP 100.0 7.38
289-300........................ 1.47 1.20 3.53 96.3 7.49
301-312........................ NAP NAP NAP 100.0 7.16
313-324........................ 1.35 1.25 1.40 93.0 7.93
325-336........................ 1.33 1.26 1.46 96.7 7.27
349-360........................ 1.34 1.11 2.06 95.4 7.23
----- ----- ----- ----- ---
Total/Avg/Wtd. Avg./Min/
Max:......................... 1.38x 1.06x 3.53x 96.4% 7.28%
----- ----- ----- ----- ---
----- ----- ----- ----- ---
</TABLE>
The weighted average remaining amortization term is 316 months.
- ------------------------------
* Less than 0.1%
(1) The DSC Ratio and LTV Ratio information shown above do not reflect the 77
Credit Lease Loans, representing 7.3% of the Initial Pool Balance, which
typically have debt service coverage ratios below 1.20x and loan to value
ratios in excess of 80%.
(2) Occupancy Rates were calculated without reference to Hospitality properties.
S-64
<PAGE>
AMORTIZATION TYPES
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
% BY AVERAGE HIGHEST
AGGREGATE AGGREGATE CUT-OFF CUT-OFF WTD. AVG.
AMORTIZATION NUMBER OF CUT-OFF DATE CUT-OFF DATE DATE DATE CUT-OFF DATE
TYPES(5) LOANS BALANCE BALANCE BALANCE BALANCE LTV RATIO(1)
- ------------------------ --------------- ------------- --------------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Balloon(3).............. 436 $1,981,724,493 57.0% $4,545,240 $64,000,000 72.5%
ARD(4).................. 105 841,345,796 24.2 8,012,817 154,000,000 71.9
Fully Amortizing........ 135 652,193,794 18.8 4,831,065 178,378,814 67.8
--- ------------- ----- ----------- ----------- ---
Total/Avg/Wtd. Avg./Min/
Max:.................. 676 $3,475,264,083 100.0% $5,140,923 $178,378,814 71.6%
--- ------------- ----- ----------- ----------- ---
--- ------------- ----- ----------- ----------- ---
<CAPTION>
WTD. AVG. MINIMUM MAXIMUM WTD. AVG. WTD. AVG.
AMORTIZATION CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
TYPES(5) DSC RATIO(1) DSC RATIO(1) DSC RATIO(1) RATE(2) RATE
- ------------------------ --------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Balloon(3).............. 1.38x 1.11x 2.29x 96.0% 7.29%
ARD(4).................. 1.49 1.19 3.53 93.7 7.13
Fully Amortizing........ 1.38 1.06 2.55 98.5 7.32
--- --- --- --- ---
Total/Avg/Wtd. Avg./Min/
Max:.................. 1.41x 1.06x 3.53x 95.9% 7.26%
--- --- --- --- ---
--- --- --- --- ---
</TABLE>
- ------------------------------
(1) The DSC Ratio and LTV Ratio information shown above do not reflect the 77
Credit Lease Loans, representing 7.3% of the Initial Pool Balance, which
typically have debt service coverage ratios below 1.20x and loan to value
ratios in excess of 80%.
(2) Occupancy Rates were calculated without reference to Hospitality properties.
(3) Includes three Mortgage Loans, or 2.1%, which require payments of interest
only for a period of 24 to 60 months from origination prior to the
commencement of payments of principal and interest.
(4) Includes nine Mortgage Loans, or 10.4%, which require payments of interest
only for a period of 23 months to 132 months from origination prior to the
commencement of payments of principal and interest.
(5) Each category of Amortization Type contains Mortgage Loans that are subject
to changes in the amount of the monthly payment at specified times in the
future. Refer to the sheet named "Step" in the file "FULBBA.XLS" on the
diskette in the back cover of the Prospectus Supplement.
OCCUPANCY RATES
(ALL MORTGAGE LOANS OTHER THAN MORTGAGE LOANS SECURED BY HOSPITALITY PROPERTIES)
<TABLE>
<CAPTION>
% BY
RANGE OF AGGREGATE AGGREGATE AVERAGE HIGHEST WTD. AVG. WTD. AVG.
OCCUPANCY NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
RATES(%) LOANS BALANCE BALANCE BALANCE BALANCE LTV RATIO(1) DSC RATIO(1)
- --------------------- ------------- ------------- --------------- ------------ ------------ --------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
68.01- 70.00......... 1 $ 2,189,022 0.1% $2,189,022 $2,189,022 47.6% 1.38x
70.01- 75.00......... 3 16,550,187 0.5 5,516,729 12,168,124 72.0 1.27
75.01- 80.00......... 2 4,508,750 0.1 2,254,375 2,988,063 70.4 1.29
80.01- 85.00......... 15 143,765,672 4.4 9,584,378 85,527,649 66.7 1.68
85.01- 90.00......... 41 292,256,966 9.0 7,128,219 77,863,877 68.6 1.55
90.01- 95.00......... 123 665,281,435 20.5 5,408,792 24,500,000 74.6 1.35
95.01-100.00......... 446 2,119,089,767 65.3 4,751,322 178,378,814 72.2 1.37
----- ------------- ----- ------------ ------------ --- ---
Total/Avg/Wtd. Avg./
Min/Max:........... 631 $3,243,641,798 100.0% $5,140,478 1$78,378,814 72.1% 1.40x
----- ------------- ----- ------------ ------------ --- ---
----- ------------- ----- ------------ ------------ --- ---
<CAPTION>
RANGE OF MINIMUM MAXIMUM WTD. AVG. WTD. AVG.
OCCUPANCY CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
RATES(%) DSC RATIO(1) DSC RATIO(1) RATE RATE
- --------------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
68.01- 70.00......... 1.38x 1.38x 68.3% 8.13%
70.01- 75.00......... 1.21 1.46 73.2 7.36
75.01- 80.00......... 1.26 1.30 79.0 7.41
80.01- 85.00......... 1.19 1.91 84.3 7.04
85.01- 90.00......... 1.21 2.29 88.4 7.22
90.01- 95.00......... 1.11 2.00 93.2 7.25
95.01-100.00......... 1.06 2.55 98.8 7.24
--- --- --- ---
Total/Avg/Wtd. Avg./
Min/Max:........... 1.06x 2.55x 95.9% 7.23%
--- --- --- ---
--- --- --- ---
</TABLE>
- ------------------------
(1) The DSC Ratio and LTV ratio information shown above do not reflect the 77
Credit Lease Loans, representing 7.3% of the Initial Pool Balance, which
typically have debt service coverage ratios below 1.20x and loan to value
ratios in excess of 80%.
S-65
<PAGE>
RESERVE ACCOUNT
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
1 IBM Corporate Office Complex Office -- -- --
2 Broadmoor Austin Office -- -- --
3 Fox Valley Mall Retail--Anchored -- -- --
4 Hawthorn Center Retail--Anchored -- -- --
5 First Union Plaza Office -- -- --
6 Oakwood Village Multifamily -- $244,800 NAP
7 Phillips Place Retail--Unanchored -- 12,964 --
8 Prince George's Metro Center Office $ 20,500 37,800 $ 180,000
9 Musselman Portfolio (Roll-
Up) Hotel--Limited Service 106,363 4% of Gross Income NAP
10 Ohio Edison Office Building Office -- 50,360 100,000
11 The Ridge Gardens Apartments Multifamily 3,563 124,821 NAP
12 Holiday Inn Downtown Hotel--Full Service 5,438 4% of Gross Income NAP
13 Peach Tree Apartments Multifamily 66,250 93,500 NAP
14 St. Andrews Place Multifamily -- 58,104 NAP
15 Hunt Club Multifamily 53,237 76,608 NAP
16 100 West Chestnut St. Multifamily 14,875 66,920 NAP
17 Hickory Ridge Commons
Shopping Center Retail--Anchored 10,000 13,130 96,300
18 Holly Hall Multifamily 186,365 99,575 NAP
19 1066 Third Avenue (Royale
Retail Condominiums) Retail--Anchored -- 6,075 --
20 Richardson Highlands Multifamily 145,000 56,232 NAP
21 Burke Centre Retail--Anchored -- -- --
22 Stallings Portfolio (Loan
Level) Office -- 41,181 208,804
--
23 Brinker Trust 11 CTL -- -- NAP
23a On The Border--Store #16 CTL -- -- NAP
23b Macaroni Grill--Store #131 CTL -- -- NAP
23c On The Border--Store #50 CTL -- -- NAP
23d On The Border--Store #17 CTL -- -- NAP
23e Chili's--Store #332 CTL -- -- NAP
23f Macaroni Grill--Store #37 CTL -- -- NAP
23g Chili's--Store #520 CTL -- -- NAP
23h Chili's--Store #272 CTL -- -- NAP
23i Chili's--Store #326 CTL -- -- NAP
--
24 Brinker Trust 9 CTL -- -- NAP
25 Quince Orchard I Apartments Multifamily 42,500 89,496 NAP
26 Levittown Trace Apartments Multifamily -- 147,654 NAP
27 Chester Mall Retail--Anchored -- 19,644 62,000
28 Peachtree Walk Multifamily -- 32,700 NAP
29 Statesboro Mall Retail--Anchored 26,853 56,635 93,000
30 Days Inn & Suites Historic
Savannah Hotel--Full Service 128,250 4% of Gross Income NAP
31 Shaws Sainsbury CTL 25,000 6,484 NAP
32 Sandy Mall Retail--Anchored 38,750 56,614 153,000
--
33 Consolidated Cap Care
Properties (8) Health Care--Skilled Nursing 29,828 252,497 NAP
33a Wynne Skilled Health Care--Skilled Nursing 1,000 -- NAP
33b Marianna Health Care--Skilled Nursing 6,375 -- NAP
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
1 -- 5/1/98
2 -- 5/1/98
3 -- 5/1/98
4 -- 5/1/98
5 $ 2,000,000 4/16/98
6 NAP 4/16/98
7 1,088,449 4/16/98
8 1,040,000 b) 4/16/98
9
NAP 4/10/98
10 -- 4/8/98
11 NAP 4/16/98
12 NAP 4/1/98
13 NAP 4/16/98
14 NAP 4/1/98
15 NAP 4/16/98
16 NAP 4/16/98
17
16,050 4/8/98
18 NAP 4/16/98
19
-- 4/8/98
20 NAP 4/8/98
21 -- 4/16/98
22
17,400 4/14/98
23 NAP 4/16/98
23a NAP 4/16/98
23b NAP 4/16/98
23c NAP 4/16/98
23d NAP 4/16/98
23e NAP 4/16/98
23f NAP 4/16/98
23g NAP 4/16/98
23h NAP 4/16/98
23i NAP 4/16/98
24 NAP 4/16/98
25 NAP 4/16/98
26 NAP 4/8/98
27 5,167 4/28/98
28 NAP 4/16/98
29 100,000 4/1/98
30
NAP 4/1/98
31 NAP 4/16/98
32 12,750 4/1/98
33
NAP 4/16/98
33a NAP 4/16/98
33b NAP 4/16/98
</TABLE>
S-66
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
33c Forrest City
Intermediate--500 Kittle
Road Health Care--Skilled Nursing $ 1,313 -- NAP
33d DeWitt Health Care--Skilled Nursing 3,750 -- NAP
33e Stuttgart Health Care--Skilled Nursing 5,281 -- NAP
33f Forrest City Skilled--603
Kittle Road Health Care--Skilled Nursing 1,313 -- NAP
33g Helena Skilled--116 November Health Care--Skilled Nursing 2,469 -- NAP
33h Helena Intermediate--111
Hospital Health Care--Skilled Nursing 8,328 -- NAP
--
34 Stone Creek / Waters Landing Multifamily 16,250 $59,280 NAP
35 Temple City Square Retail--Anchored 20,500 10,524 $ 78,360
36 Hechinger Commons Shopping
Center Retail--Anchored -- 14,613 --
37 Steeplechase / Largo Multifamily -- 59,520 NAP
38 Sandy Springs Plaza Retail--Unanchored 42,813 16,259 --
39 The Plantation at Lafayette Multifamily -- 33,300 NAP
40 North Atherton Place Retail--Anchored -- 53,907 --
41 Woodholme Medical Building Office -- -- --
42 GTE Stemmons Crossing Office 13,750 23,156 --
43 Highland Pinetree Apartments Multifamily 31,188 64,000 NAP
44 Westmont Business Park
(Roll-up) Industrial 231,210 56,796 100,968
45 Wyndham Garden Hotel Hotel--Full Service 21,250 4% of Gross Income NAP
46 Hulen Bend Center Retail--Anchored 6,513 25,512 37,416
47 Cineplex Odeon Movie Theater Retail--Anchored -- -- --
48 Rose Hill II Multifamily -- 67,320 NAP
49 Golf Glen Mart Plaza Retail--Anchored 7,125 34,925 61,603
50 Clearwater Crossing Shopping
Center Retail--Anchored 6,563 37,250 96,300
51 Rivercrest Village
Apartments Multifamily 189,875 78,392 NAP
52 Super K-Mart Center CTL -- -- NAP
53 Quince Orchard II Apartments Multifamily 28,750 66,816 NAP
54 Market at Wolfcreek Retail--Anchored 2,500 6,922 5,425
--
55 Brinker Trust 5 CTL -- -- NAP
55a Macaroni Grill--Store #106 CTL -- -- NAP
55b On The Border--Store #24 CTL -- -- NAP
55c Chili's--Store #364 CTL -- -- NAP
55d Chili's--Store #523 CTL -- -- NAP
55e Chili's--Store #256 CTL -- -- NAP
55f Chili's--Store #421 CTL -- -- NAP
--
56 Brinker Trust 7 CTL -- -- NAP
56a Macaroni Grill--Store #53 CTL -- -- NAP
56b Macaroni Grill--Store #84 CTL -- -- NAP
56c On The Border--Store #40 CTL -- -- NAP
56d Chili's--Store #500 CTL -- -- NAP
56e Chili's--Store #404 CTL -- -- NAP
56f Chili's--Store #314 CTL -- -- NAP
--
57 Northwind Multifamily -- 27,750 NAP
--
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
33c
NAP 4/16/98
33d NAP 4/16/98
33e NAP 4/16/98
33f
NAP 4/16/98
33g NAP 4/16/98
33h
NAP 4/16/98
34 NAP 4/16/98
35 -- 4/24/98
36
-- 4/16/98
37 NAP 4/16/98
38 -- 4/16/98
39 NAP 4/16/98
40 -- 4/8/98
41 $ 275,780 4/16/98
42 250,000 4/6/98
43 NAP 4/14/98
44
5,801 3/31/98
45 NAP 4/1/98
46 9,360 4/1/98
47 -- 4/1/98
48 NAP 4/16/98
49 15,426 4/1/98
50
16,050 4/8/98
51
NAP 4/1/98
52 NAP 4/1/98
53 NAP 4/16/98
54 2,713 4/8/98
55 NAP 4/16/98
55a NAP 4/16/98
55b NAP 4/16/98
55c NAP 4/16/98
55d NAP 4/16/98
55e NAP 4/16/98
55f NAP 4/16/98
56 NAP 4/16/98
56a NAP 4/16/98
56b NAP 4/16/98
56c NAP 4/16/98
56d NAP 4/16/98
56e NAP 4/16/98
56f NAP 4/16/98
57 NAP 4/16/98
</TABLE>
S-67
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
58 Brinker Trust 2 CTL -- -- NAP
58a Macaroni Grill--Store #50 CTL -- -- NAP
58b Macaroni Grill--Store #115 CTL -- -- NAP
58c Chili's--Store #470 CTL -- -- NAP
58d Chili's--Store #302 CTL -- -- NAP
58e Chili's--Store # 309 CTL -- -- NAP
58f Chili's--Store #329 CTL -- -- NAP
--
59 Concorde Centre II Office
Building Office -- $15,939 $ 96,661
60 Sundance West Apartments Multifamily -- 92,400 NAP
61 Old Farm Multifamily $ 182,688 83,160 NAP
62 River Reach Multifamily--Section 42 8,750 52,500 NAP
63 Maplewood Center Retail--Anchored -- 1,750 79,800
--
64 Health Care South(6 Prop) Health Care--Skilled Nursing 11,000 121,050 NAP
64a Toombs Nursing Home Health Care--Skilled Nursing 2,500 32,400 NAP
64b Brentwood Terrace Health
Center Health Care--Skilled Nursing 5,000 23,175 NAP
64c Lee County Health Care Health Care--Skilled Nursing -- 13,500 NAP
64d Liliann G. Carter Nursing
Home Health Care--Skilled Nursing 1,682 22,500 NAP
64e Sparta Health Care Center Health Care--Skilled Nursing -- 18,225 NAP
64f Oconee Health Care Center Health Care--Skilled Nursing 1,818 11,250 NAP
--
65 Spinnaker Reach Apartments Multifamily--Section 42 -- 50,400 NAP
66 Inverrary 441 Apartments Multifamily -- 89,748 NAP
67 Eastland Plaza Retail--Anchored -- 13,922 --
68 Woodhaven Apartments Multifamily -- 66,150 NAP
69 Best Western Greenfield Inn Hotel--Limited Service 334,163 4% of Gross Income NAP
70 Hampton Inn Pensacola Beach Hotel--Limited Service 1,260 4% of Gross Income NAP
71 Plaza LaFayette Retail--Unanchored -- 5,954 --
--
72 The Broun Portfolio
Consolidation Multifamily 24,231 65,772 NAP
72a The Glen Multifamily 5,481 -- NAP
72b The Mews Apartments Multifamily 5,000 -- NAP
72c Meadowlark Apartments Multifamily 13,750 -- NAP
--
73 North Willow Commons
Shopping Center Retail--Anchored -- 25,195 76,200
74 International Club
Apartments Multifamily -- 51,106 NAP
75 Village Green Apartments Multifamily 2,430,000 72,450 NAP
76 Liberty Gardens Multifamily 137,531 54,970 NAP
77 Park Forest Multifamily 22,125 51,912 NAP
78 Kings Harbor Multicare
Center Health Care--Skilled Nursing 38,750 180,000 NAP
79 Gateway Shopping Center Retail--Anchored 25,638 28,955 --
80 Briarcliffe Lakeside
Apartments Multifamily 69,563 52,836 NAP
81 Daytona Beach Hilton
Oceanfront Resort Hotel--Full Service 1,563 4% of Gross Income NAP
82 Valley Manor Multifamily 3,750 40,400 NAP
83 North Oaks Plaza Retail--Anchored 23,375 52,846 92,035
84 The Morrison Building Office -- -- --
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
58 NAP 4/16/98
58a NAP 4/16/98
58b NAP 4/16/98
58c NAP 4/16/98
58d NAP 4/16/98
58e NAP 4/16/98
58f NAP 4/16/98
59
$ 100,000 4/2/98
60 NAP 4/30/98
61 NAP 4/16/98
62 NAP 4/16/98
63 19,963 4/1/98
64 NAP 4/16/98
64a NAP 4/16/98
64b
NAP 4/16/98
64c NAP 4/16/98
64d
NAP 4/16/98
64e NAP 4/16/98
64f NAP 4/16/98
65 NAP 4/16/98
66 NAP 4/1/98
67 -- 4/16/98
68 NAP 4/16/98
69 NAP 4/16/98
70 NAP 4/6/98
71 -- 4/16/98
72
NAP 4/16/98
72a NAP 4/16/98
72b NAP 4/16/98
72c NAP 4/16/98
73
12,700 4/8/98
74
NAP 4/1/98
75 NAP 4/1/98
76 NAP 4/16/98
77 NAP 4/16/98
78
NAP 4/16/98
79 211,516 ) 4/16/98
80
NAP 4/1/98
81
NAP 4/1/98
82 NAP 4/16/98
83 -- 4/14/98
84 -- 4/16/98
</TABLE>
S-68
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
85 Sandstone Apartments Multifamily $ 25,456 $57,750 NAP
86 Innsbrook Village Multifamily 12,969 71,040 NAP
87 1616 Walnut Street Office 573,750 45,790 $ 177,429
88 Century Village Apartments Multifamily 9,632 91,660 NAP
89 Hampton Inn (Louisville) Hotel--Limited Service -- 4% of Gross Income NAP
90 Hampton Inn & Suites--
Pineville Hotel--Limited Service 438 4% of Gross Income NAP
91 La Villita Apartments Multifamily -- 60,270 NAP
92 White Marlin Mall, Phase I Retail--Anchored 36,563 22,611 43,715
93 Claremont Retirement Village Health Care--Congregate Care 3,500 50,000 NAP
94 Brookside West Apartments Multifamily 2,250 37,600 NAP
95 Harris Boulevard I Industrial -- -- --
96 Scott Mountain by the Brook Multifamily -- -- NAP
97 Classic Portfolio (Roll-up) Retail--Unanchored -- 1,413 70,404
98 Oak Hills Medical Plaza Office -- 11,245 72,475
99 North Point--Springhouse
Phase I Multifamily 39,942 73,293 NAP
100 Kensington Club Apartments Multifamily 14,375 45,646 NAP
101 Village Green Office Park Office -- -- --
102 West Georgia Commons Retail--Anchored -- 41,634 48,000
103 Colleyville Court Retail--Anchored 3,125 8,544 19,644
104 Tlaquepaque Arts & Crafts
Village Retail--Unanchored 56,250 6,378 27,443
105 Innsbrook Shoppes Retail--Unanchored 3,750 23,913 --
106 Glen Harbor Plaza Retail--Anchored -- 5,012 4,296
107 Hulen Fashion Center Retail--Anchored 63,875 36,414 --
108 Decatur Crossing Shopping
Center Retail--Anchored 7,188 15,510 154,661
109 Montgomery Street Multifamily 22,176 40,000 NAP
110 City Place Retail--Unanchored -- 8,356 34,800
111 Sunscape West Apartments Multifamily -- 35,676 NAP
112 Orangebrook Manor Apartments Multifamily -- -- NAP
113 Trinity Place Apartments Multifamily 14,188 60,000 NAP
114 Le Med Apartments Multifamily 9,125 22,400 NAP
115 Pleasant Hills Villas Multifamily -- 41,068 NAP
116 Westminster Plaza Retail--Unanchored 600 30,041 56,327
117 Legacy Apartments Multifamily -- 15,893 NAP
118 Valley Breeze Apartments Multifamily -- 36,864 NAP
119 City Center Building Office 22,500 24,711 105,030
120 Dublin Mall Retail--Anchored 120,923 53,131 75,000
121 Fountain Court Retail--Anchored 345,553 23,759 --
122 New Market Mall Retail--Unanchored 4,000 25,704 140,004
123 Highgate Apartments Multifamily 67,548 56,896 NAP
124 Playa Blanca Apartments Multifamily 12,188 45,724 NAP
125 Minges Brook Mall Retail--Anchored 3,125 37,440 17,100
126 The Addison Office -- -- --
127 Carolina Apartments Multifamily 81,063 52,250 NAP
128 Holiday Inn Lynchburg Hotel--Full Service 22,350 4% of Gross Income NAP
129 PalmTree Plaza Retail--Anchored -- 12,708 --
130 Victoria Apartments Multifamily -- 67,507 NAP
131 Pelham at Hyland Business
Center Office 500 5,778 24,000
132 Franklin Plaza Retail--Anchored 4,938 -- --
133 Cumberland Green Multifamily 18,188 79,520 NAP
134 Spring Center Retail--Unanchored 7,188 -- --
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
85 NAP 4/16/98
86 NAP 4/30/98
87 $ 14,786 3/31/98
88 NAP 4/30/98
89 NAP 4/17/98
90
NAP 4/16/98
91 NAP 4/30/98
92 3,643 4/29/98
93 NAP 4/16/98
94 NAP 4/16/98
95 -- 4/16/98
96 NAP 4/16/98
97 23,468 4/1/98
98 12,089 4/17/98
99
NAP 4/16/98
100 NAP 4/1/98
101 -- 4/30/98
102 200,000 4/1/98
103 4,914 4/1/98
104
-- 4/1/98
105 -- 4/16/98
106 418 4/1/98
107 -- 4/1/98
108
52,337 4/30/98
109 NAP 4/16/98
110 2,900 4/28/98
111 NAP 4/1/98
112 NAP 4/30/98
113 NAP 4/16/98
114 NAP 4/14/98
115 NAP 4/30/98
116 -- 4/1/98
117 NAP 4/30/98
118 NAP 4/30/98
119 -- 4/22/98
120 100,000 4/1/98
121 -- 4/16/98
122 424,259 4/1/98
123 NAP 4/1/98
124 NAP 4/1/98
125 4,278 4/1/98
126 -- 4/16/98
127 NAP 4/16/98
128 NAP 4/16/98
129 -- 4/16/98
130 NAP 4/30/98
131
4,003 4/8/98
132 -- 4/16/98
133 NAP 4/16/98
134 -- 4/16/98
</TABLE>
S-69
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
135 Rose Hill I Multifamily -- $40,906 NAP
136 Officemax and Best Buy Retail--Anchored -- 6,929 $ 17,328
137 Two Executive Boulevard Office -- 9,804 87,504
138 Green Grove Multifamily -- 34,440 NAP
139 Constantine Village Multifamily $ 12,500 20,000 NAP
140 Q Club Sugarland CTL -- -- NAP
141 Shoppes of Olney Retail--Anchored -- -- --
142 United HealthCare Office
Bldg Office -- -- --
143 Linden Court Apartments Multifamily 5,875 40,778 NAP
144 Serra Commons Apartments Multifamily 4,125 24,475 NAP
145 A & P Grocery Store CTL -- 6,916 NAP
146 540 Atlantic Avenue Office 16,819 17,144 --
147 Maple Leaf Plaza Retail--Anchored 17,875 14,895 --
148 Holiday Inn City Center Hotel--Full Service 382,600 4% of Gross Income NAP
149 53, 53-West, and 102
Commerce Center Industrial 11,165 24,409 60,313
150 K & K Warehousing--701
Fourth Avenue Industrial 15,688 44,000 --
151 Emerald Apartments Multifamily 5,000 47,700 NAP
152 MacArthur Plaza I & II Retail--Unanchored 2,500 7,890 41,574
153 Mount Vernon Multifamily 2,500 65,000 NAP
154 Evergreen Plaza Retail--Anchored 2,438 8,465 32,844
155 21 DuPont Circle Office 5,750 13,018 52,070
156 1-3 Parklands Drive
(Parkland Office Park) Office 12,500 12,730 70,313
157 Payne Ranch Centre Retail--Anchored -- 9,563 --
158 Leonardine Gardens Multifamily 39,750 35,000 NAP
159 Kroger La Grange CTL 1,250 4,906 NAP
160 Park Encino Apartments Multifamily -- -- NAP
161 Wickes Shopping Center Retail--Unanchored 15,625 9,934 33,115
162 Ashby Square West Shopping
Center Retail--Anchored 4,250 14,132 36,000
163 Hampton Inn Detroit Metro
Airport Hotel--Limited Service -- 4% of Gross Income NAP
164 Commerce Park of Palm Beach
County Industrial 2,500 33,648 40,008
165 Forest Glen Apartments Multifamily -- -- NAP
166 Home--Springhouse Phase II Multifamily 29,000 53,360 NAP
167 Southside Comfort Inn Hotel--Limited Service 875 4% of Gross Income NAP
168 Mill Park Apartments Multifamily -- 60,200 NAP
169 Warehouse Specialists--
Enterprise Park 3.5, 4, 5 Industrial 1,250 23,250 --
170 Grand Central Station
Shopping Center Retail--Anchored -- 16,148 171,429
171 Ramada Inn Newburgh Hotel--Full Service 13,125 4% of Gross Income NAP
172 73 Spring Street Limited
Partnership Office 2,500 5,800 66,700
173 Beacon Mill Village Multifamily 10,328 43,146 NAP
174 Club at Woodland Pond Multifamily 33,500 46,200 NAP
175 La Maison Multifamily 34,627 46,640 NAP
176 Connecticut Avenue Days Inn Hotel--Limited Service 11,750 4% of Gross Income NAP
177 Dill Creek Commons Shopping
Center Retail--Anchored -- -- --
178 Whole Foods Market Retail--Anchored -- 3,000 --
179 One Sentry Parkway Office 16,692 17,900 101,706
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
135 NAP 4/16/98
136 -- 4/6/98
137 $ 7,292 4/28/98
138 NAP 4/16/98
139 NAP 4/16/98
140 NAP 4/16/98
141 -- 4/16/98
142
-- 4/16/98
143 NAP 4/1/98
144 NAP 4/3/98
145 NAP 4/1/98
146 637,943 4/16/98
147 -- 4/16/98
148 NAP 4/1/98
149
-- 4/29/98
150
-- 4/16/98
151 NAP 4/1/98
152 -- 4/29/98
153 NAP 4/16/98
154 5,559 4/1/98
155 4,339 4/1/98
156
217,491 4/29/98
157 -- 4/1/98
158 NAP 4/16/98
159 NAP 4/16/98
160 NAP 4/30/98
161 200,000 4/1/98
162
26,071 4/8/98
163
NAP 4/16/98
164
3,339 3/31/98
165 NAP 4/30/98
166 NAP 4/16/98
167 NAP 4/16/98
168 NAP 4/16/98
169
-- 4/16/98
170
28,723 4/16/98
171 NAP 4/16/98
172
22,256 4/1/98
173 NAP 4/16/98
174 NAP 4/29/98
175 NAP 4/16/98
176 NAP 4/16/98
177
-- 4/16/98
178 -- 4/14/98
179 300,496 3/31/98
</TABLE>
S-70
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
180 Hampton Inn--Matthews Hotel--Limited Service $ 1,500 4% of Gross Income NAP
181 Cambridge House Health Care--Skilled Nursing 15,550 $32,500 NAP
182 Alta Vista Gardens
Apartments Multifamily -- -- NAP
183 Kato Road Industrial -- 13,748 $ 21,200
184 Hearthside Multifamily 55,000 -- NAP
185 Hampton Inn--Concord Hotel--Limited Service 6,250 4% of Gross Income NAP
186 Reddmans Pier Apartments Multifamily 38,813 57,478 NAP
187 Budgetel Inn Hotel--Limited Service -- 4% of Gross Income NAP
188 Hillside Village Center Retail--Anchored 3,500 14,906 49,686
189 Kroger Huntsville CTL 8,500 5,338 NAP
190 Q Club Las Vegas CTL -- -- NAP
191 Thrifty's (Roll-Up) Retail--Anchored 69,015 17,366 77,345
192 Kelly House Multifamily 12,438 18,096 NAP
193 Tiffany Corner Shopping
Center Retail--Anchored -- 17,446 36,948
194 Timbers of Pine Hollow
Apartments Multifamily 35,972 51,300 NAP
195 Hampton Inn--Gatlinburg, TN Hotel--Limited Service 28,090 4% of Gross Income NAP
196 Q Club Tempe CTL -- -- NAP
197 Agoura Hills Town Center Mixed Use 1,250 5,694 --
198 Foxhill Apartments Multifamily 53,825 77,824 NAP
199 Q Club Jacksonville CTL -- -- NAP
200 Southpoint Shopping Center Retail--Anchored 9,125 15,452 18,000
201 Provincial Towers Apartments Multifamily 5,000 27,225 4,213
202 Royal Palms Mobile Home/RV
Park Mobile Home Park 1,875 6,183 NAP
203 K&K Warehousing--3100
Woleske Rd Industrial 33,750 37,400 --
204 Park Plaza--Salem Retail--Anchored -- 5,699 --
205 Fairesta Apartments Multifamily -- 27,697 NAP
206 Villa Park I Office 13,125 7,616 60,000
207 Cody's Books Industrial -- -- --
208 Village Faire Shoppes Retail--Unanchored 11,250 6,646 59,593
209 South Trust Building Office 3,750 10,012 71,659
210 South Ridge Apartments Multifamily 90,625 64,800 NAP
211 Fairfield Inn Shreveport Hotel--Limited Service -- 4% of Gross Income NAP
212 Santa Ana Plaza Retail--Anchored -- 11,019 35,116
213 Oxford Point Retail--Unanchored 9,375 9,881 --
214 Minges Creek Plaza Retail--Anchored -- 11,244 32,424
215 TransFlorida Bank Plaza Retail--Unanchored -- 11,135 26,000
216 Chesapeake Square Retail--Anchored 4,250 7,693 20,012
217 Orchard Plaza Retail--Anchored 2,000 19,791 5,163
218 Sunnyview Multifamily 193,559 62,720 NAP
219 Plaza Codorniz Office -- 22,839 55,322
220 J.P. Morgan Building Office -- 1,800 18,000
221 Villa Creek Apartments Multifamily -- 18,510 NAP
222 Seminary Place Shopping
Center Retail--Anchored -- -- --
223 Vernon Gardens Multifamily 150,000 45,600 NAP
224 Kingston Apartments Multifamily 74,875 39,000 NAP
225 Glengary Shopping Center Retail--Unanchored 11,000 20,455 --
226 1696 and 1700 to 1712
Newport Boulevard Retail--Unanchored -- 3,635 19,788
227 Tarzana Tennis Club Apts. Multifamily -- -- NAP
228 Ramada Inn & Suites Hotel--Limited Service -- 4% of Gross Income NAP
229 L.A. Community College Industrial -- 7,402 --
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
180 NAP 4/16/98
181 NAP 4/16/98
182
NAP 4/30/98
183 $ 5,548 4/30/98
184 NAP 4/16/98
185 NAP 4/16/98
186 NAP 4/16/98
187 NAP 4/29/98
188 4,141 4/29/98
189 NAP 4/16/98
190 NAP 4/16/98
191 12,891 4/14/98
192 NAP 4/16/98
193
3,079 4/1/98
194
NAP 4/1/98
195 NAP 4/16/98
196 NAP 4/16/98
197 101,476 4/16/98
198 NAP 4/16/98
199 NAP 4/16/98
200 104,502 4/1/98
201 702 4/1/98
202
NAP 4/2/98
203
-- 4/16/98
204 -- 4/6/98
205 NAP 4/30/98
206 10,079(I) 4/16/98
207 -- 4/30/98
208 4,966 4/1/98
209 11,949 4/1/98
210 NAP 4/14/98
211 NAP 4/16/98
212 18,871 4/30/98
213 -- 4/16/98
214 -- 4/17/98
215 2,167 4/1/98
216 1,668 4/8/98
217 430 3/31/98
218 NAP 4/16/98
219 -- 4/30/98
220 -- 4/1/98
221 NAP 4/30/98
222
-- 4/16/98
223 NAP 4/16/98
224 NAP 4/1/98
225 -- 4/1/98
226
-- 4/1/98
227 NAP 4/30/98
228 NAP 4/16/98
229 -- 4/30/98
</TABLE>
S-71
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
230 Walgreens Pharmacy (Chicago) CTL -- $2,080 NAP
231 Karl Plaza Shopping Center Retail--Anchored $ 14,587 19,955 --
232 Villa Serrano Multifamily 5,000 19,892 $ 51,211
233 Kendale Plaza Shopping
Center Retail--Unanchored 5,250 32,815 41,676
234 Sunrise Vista Mobile Home Park -- -- NAP
235 Best Buy (Little Rock) Retail--Anchored -- -- --
236 Alice Nettell Tower Multifamily -- 39,000 NAP
237 Seagate Facility Industrial -- 17,626 19,504
238 Hunters Crossing Multifamily 11,673 46,464 NAP
239 54-57 South Street Mixed Use 20,313 6,823 --
240 Hansen Village Apartments Multifamily -- 26,100 NAP
241 Oakwood Apartments Multifamily 6,500 33,108 NAP
242 Lake Loft Center Office -- 16,020 74,248
243 5210 Maryland Way Office
Building Office -- 1,337 15,000
244 Milestone Multifamily 7,375 33,936 NAP
245 Fashion Village and East
Colonial Shopping Centers Retail--Unanchored 106,938 7,758 20,000
246 Arnold Industrial Park Industrial 625 22,477 --
247 Derby Ridge Multifamily 179,119 48,000 NAP
248 Ventana Row Retail--Anchored 16,428 1,960 30,000
249 New Hampshire Apartments Multifamily -- 50,660 NAP
250 Superstition Marketplace Retail--Unanchored -- 16,872 --
251 Blue Grass Plaza Retail--Anchored 13,149 11,050 53,543
252 Merrill Crossing Shopping
Ctr. Retail--Anchored 10,000 26,028 25,212
253 River Creek Apartments Multifamily 25,000 44,796 NAP
254 Village Green Multifamily 3,875 26,400 NAP
255 Spartan Square Shopping
Center Retail--Anchored 7,125 31,985 --
256 Winn Dixie Eustis CTL -- 11,000 NAP
257 Versailles of Rockford Multifamily 68,413 20,584 NAP
258 Lynnwood Manor Health Care
Center Health Care--Skilled Nursing 3,774 38,150 NAP
259 Tri-County Square Retail--Anchored 875 21,081 48,875
260 Bethesda Court Hotel Hotel--Limited Service 5,250 4% of Gross Income NAP
261 Winn Dixie Orangeburg CTL -- 6,600 NAP
262 Roswell Mill Office
Buildings Office 4,750 13,516 68,304
263 Highland Tech Center Office 7,098 23,826 14,400
264 Stor-All Properties Industrial 42,969 22,596 --
265 Parole Office Park Office 26,625 11,274 38,157
266 McEvers Corners Retail--Anchored -- 14,532 41,880
267 Windscape II Apartments Multifamily -- 38,883 NAP
268 Courtyards Apartments Multifamily 55,625 35,325 NAP
269 Miami Gardens Plaza Retail--Anchored -- 28,872 50,004
270 Village South Multifamily 16,761 37,128 NAP
271 Webtron Building Industrial -- 15,362 --
272 Fairway Center Office -- 7,221 53,784
273 Santa Fe Square Retail--Anchored -- 62,422 158,098
274 Gomes Plaza Retail--Unanchored -- -- --
275 Covington Square Multifamily 24,162 29,160 NAP
276 Best Buy (Sioux Falls) Retail--Anchored -- 7,782 --
277 Parkway Nursing Home Health Care--Skilled Nursing -- 38,150 NAP
278 Grand Manor Nursing and
Rehab Center Health Care--Skilled Nursing 22,500 36,000 NAP
279 Terrace View Apartments Multifamily 15,000 23,400 NAP
280 Hillsdale Manor Multifamily 10,538 43,020 NAP
281 Amerihost Inn- Players Hotel--Limited Service 1,125 4% of Gross Income NAP
282 Walgreens (Las Vegas) CTL -- 4,344 NAP
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
230 NAP 4/1/98
231 -- 4/1/98
232 -- 4/14/98
233
-- 4/29/98
234 NAP 4/30/98
235 -- 4/28/98
236 NAP 4/14/98
237 $ 12,515 4/30/98
238 NAP 4/16/98
239 -- 4/16/98
240 NAP 4/16/98
241 NAP 4/29/98
242 18,622 4/30/98
243
3,750 4/8/98
244 NAP 4/16/98
245
12,203 4/1/98
246 -- 4/16/98
247 NAP 4/16/98
248 7,522 4/30/98
249 NAP 4/30/98
250 -- 4/16/98
251 58,922 ) 4/16/98
252
2,104 3/31/98
253 NAP 4/1/98
254 NAP 4/16/98
255
-- 4/16/98
256 NAP 4/16/98
257 NAP 4/1/98
258
NAP 4/10/98
259 16,310 4/1/98
260 NAP 4/1/98
261 NAP 4/16/98
262
17,098 3/31/98
263 61,090 4/14/98
264 -- 4/8/98
265 3,182 3/31/98
266 -- 4/8/98
267 NAP 4/30/98
268 NAP 4/1/98
269 8,334 4/29/98
270 NAP 4/16/98
271 -- 4/28/98
272 -- 4/30/98
273 -- 4/14/98
274 -- 4/30/98
275 NAP 4/16/98
276 -- 4/3/98
277 NAP 4/10/98
278
NAP 4/16/98
279 NAP 4/1/98
280 NAP 4/16/98
281 NAP 4/16/98
282 NAP 4/1/98
</TABLE>
S-72
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
283 Metro Plaza Retail--Unanchored -- -- --
284 Fidelity Federal Bank
Building Office $ 6,725 $8,200 $ 39,418
285 White Mountain Village Retail--Anchored 6,938 16,554 40,522
286 Forestwood On the Creek
Apts. Multifamily 53,791 23,632 NAP
287 Shepherdsville Square Retail--Anchored 719 20,192 28,512
288 Westbrook Multifamily 6,750 24,000 NAP
289 100 Broadway Office 23,438 9,033 26,090
290 Staples Hazelton CTL -- 2,400 NAP
291 Treetops Terace Condominiums Multifamily -- 13,950 NAP
292 Estero Woods Village Multifamily 28,183 31,605 NAP
293 Green Center (MCG) Retail--Unanchored 10,000 7,682 27,847
294 Warehouse Specialists-- Fond
Du Lac II Industrial -- 15,978 --
295 Walgreens Pharmacy (Chicago
Heights) CTL -- 2,086 NAP
296 Everett I-5 Mini-Storage Self Storage 5,531 14,983 --
297 Buck Run/Timberline
Condominiums Multifamily 4,375 25,248 NAP
298 Marketplace Shopping Center
(Williamsburg-Loan Level) Retail--Unanchored -- 19,621 51,228
299 Mooresmill Village Multifamily--Section 42 -- 43,000 NAP
300 The Pontiac Building Office -- 17,283 86,417
301 Best Buy Retail Bldg. Retail--Anchored -- -- --
302 Sussex Downs Apartments Multifamily 53,625 14,400 NAP
303 Foothills Villas Apartments Multifamily 14,500 59,750 NAP
304 Lincoln Arms Apartments Multifamily 17 25,968 NAP
305 2-32 Brighton & 1101-1113
Commonwealth Mixed Use 38,056 16,630 20,004
306 Manchester Square Retail--Anchored 63 27,805 30,077
307 Northgate Villas Apartments Multifamily -- 29,101 NAP
308 South Brook Multifamily 26,588 66,024 NAP
309 The Promenade Apartments Multifamily -- -- NAP
310 Swall Towers East Multifamily -- 5,600 NAP
311 Pinnacle Multifamily 2,563 20,000 NAP
312 Hillside Village Plaza Office -- 10,110 59,085
313 Access Self Storage of Wayne Self Storage -- 6,511 --
314 Kaiser Permanente Health
Center Office -- 3,450 --
315 Winn Dixie Morganton CTL -- 6,748 NAP
316 Swall Towers West Multifamily -- 5,800 NAP
317 Wind & Sea Shopping Center Retail--Unanchored 961 11,623 20,000
318 Grandview Multifamily 2,813 19,200 NAP
319 Salt Lake Medical Plaza
Office Building Office -- 6,255 41,703
320 Pep Boys Union CTL -- -- NAP
321 9031 Snowden Square Drive Retail--Anchored -- -- --
322 Carriage Hills Apartments Multifamily 165,938 28,560 NAP
323 Village on the Pike Shopping
Center Retail--Anchored -- 6,968 5,000
324 101 Park Avenue Office 7,500 28,364 96,996
325 San Leandro Furniture Center Industrial 289,330 39,644 57,756
326 General Cinema Retail--Anchored -- -- --
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
283 -- 4/16/98
284
$ 28,341 4/17/98
285 6,754 4/14/98
286
NAP 4/16/98
287 4,142 4/1/98
288 NAP 4/16/98
289 4,351 4/29/98
290 NAP 4/16/98
291 NAP 4/16/98
292 NAP 4/16/98
293 2,321 4/29/98
294
-- 4/16/98
295
NAP 4/1/98
296 -- 4/28/98
297
NAP 4/16/98
298
6,293 4/17/98
299 NAP 4/16/98
300 21,674 4/30/98
301 -- 4/30/98
302 NAP 4/1/98
303 NAP 4/1/98
304 NAP 4/30/98
305
1,667(k) 4/16/98
306 4,235 4/1/98
307 NAP 4/30/98
308 NAP 4/16/98
309 NAP 4/30/98
310 NAP 4/1/98
311 NAP 4/16/98
312 -- 1/30/98
313 -- 4/16/98
314
-- 4/6/98
315 NAP 4/16/98
316 NAP 4/1/98
317 1,688 4/30/98
318 NAP 4/16/98
319
6,950 4/22/98
320 NAP 4/16/98
321 -- 4/16/98
322 NAP 4/1/98
323
-- 4/1/98
324 8,083 4/1/98
325 9,633 4/30/98
326 -- 4/8/98
</TABLE>
S-73
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
327 Westlake Commerce Center Industrial $ 3,788 -- --
328 Valencia Gardens Apartments Multifamily 3,406 $15,015 NAP
329 Barnes & Noble Retail--Anchored -- -- --
330 Mcghan Medical Buildings Industrial -- 6,720 $ 29,792
331 Woodmere Apartments Multifamily 1,875 23,400 NAP
332 Safeway Milton Freewater CTL -- 3,588 NAP
333 Rite Aid Portage CTL 5,000 3,318 NAP
334 Rain Forest Apartments Multifamily 87,438 28,800 NAP
335 Nexstar Pharmaceuticals
Building Industrial -- -- 25,000
336 Meadowrock Apartments Multifamily -- 18,562 NAP
337 544 Lawrence Expressway Retail--Unanchored -- 7,468 31,536
338 Courtyard At Scottsdale
North Retail--Unanchored -- 7,044 24,147
339 Mountain Vista Apartments Multifamily -- 43,136 NAP
340 Walgreen St John CTL -- 4,172 NAP
341 Timberfalls Apartments Multifamily 51,073 41,400 NAP
342 Chancellor Care Center of
Delmar Health Care--Skilled Nursing 2,125 27,250 NAP
343 118 South Clinton Street Office -- 15,575 77,981
344 University Village Shopping
Center Retail--Unanchored -- 3,450 8,300
345 Walgreen Lafayette CTL -- 2,086 NAP
346 Northfield Lodge Multifamily 71,406 43,362 NAP
347 Greenbrier Valley Mall Retail--Anchored 1,250 20,489 28,881
348 Somserset Chambers Multifamily--Section 42 96,788 12,390 NAP
349 Village Plaza of Margate Retail--Unanchored -- 20,318 50,808
350 Bentley Avenue Apartments Multifamily -- 6,250 NAP
351 Pheasant Glen Multifamily--Section 42 -- 16,100 NAP
352 Maple Plaza Shopping Center Retail--Anchored -- 11,336 13,800
353 11312 Westheimer Shopping
Center Retail--Unanchored 3,075 4,491 17,735
354 Old Country Plaza Retail--Unanchored 24,050 11,769 --
355 West Court Office Building Office 5,209 6,357 28,453
356 Walgreen Miami CTL -- 3,105 NAP
357 Paradise Shopping Plaza Retail--Unanchored -- 4,788 3,804
358 Century Analysis, Inc.,
Building Office -- 10,079 20,000
359 Americana Apartments Multifamily -- 12,800 NAP
360 Warehouse Specialists--
Stevens Point I & II Industrial 2,500 31,499 --
361 Dolly Creek Shopping Center Retail--Unanchored -- 2,520 33,333
362 Littleton Lyne Multifamily -- 15,580 NAP
363 Raintree Apartments Multifamily 87,375 31,248 NAP
364 Auburn Blvd Mini Storage Self Storage -- 10,374 --
365 Springs Office Building Office 1,875 4,946 --
366 Covington Club Apartments Multifamily 13,247 18,392 NAP
367 Park East Apartments Multifamily 10,125 30,527 NAP
368 Shadow Trail Apartments Multifamily 1,919 14,383 NAP
369 Inn at Saratoga Hotel--Limited Service -- 4% of Gross Income NAP
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
327 -- 4/30/98
328 NAP 4/14/98
329 -- 4/30/98
330 $ 59,931 4/30/98
331 NAP 4/1/98
332 NAP 4/16/98
333 NAP 4/16/98
334 NAP 4/1/98
335
-- 4/14/98
336 NAP 4/30/98
337 -- 4/30/98
338
8,084 4/30/98
339 NAP 4/30/98
340 NAP 4/16/98
341 NAP 4/14/98
342
NAP 4/16/98
343 19,531 4/30/98
344
-- 4/14/98
345 NAP 4/16/98
346 NAP 4/16/98
347 3,444 4/1/98
348 NAP 4/16/98
349 8,468 ) 4/16/98
350 NAP 4/30/98
351 NAP 4/16/98
352 2,300 4/10/98
353
4,439 4/17/98
354 -- 4/16/98
355 2,373 4/8/98
356 NAP 4/16/98
357 12,000 4/1/98
358
1,667 4/3/98
359 NAP 4/30/98
360
-- 4/16/98
361 -- 4/16/98
362 NAP 4/16/98
363 NAP 4/1/98
364 -- 4/16/98
365 -- 4/16/98
366 NAP 4/30/98
367 NAP 4/8/98
368 NAP 4/17/98
369 NAP 4/17/98
</TABLE>
S-74
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
370 Regency Park Apartments Multifamily -- $26,008 NAP
371 Marketplace at Ken Caryl Retail--Unanchored $ 59,250 9,847 $ 29,096
372 Three West Carillo Building Office -- 11,860 --
373 Linda Granada Multifamily 14,750 18,290 NAP
374 633 Building Office -- 3,268 50,000
375 ShorelineView Alzheimer Care
Center Health Care--Assisted Living 3,688 9,450 NAP
376 Tudor Gardens Apartments Multifamily -- -- NAP
377 Cobblestone Village Retail--Unanchored 5,000 8,921 --
378 K-Mart Plaza Shopping Center
(Galveston) Retail--Anchored 12,688 21,074 48,365
379 303 Winding Road Industrial 32,938 16,272 21,700
380 West Sahara Mini Storage Self Storage -- 9,960 --
381 Amerihost Inn--Hammond Hotel--Limited Service -- 4% of Gross Income NAP
382 Holiday Inn Express--
Albany, GA Hotel--Limited Service 10,938 4% of Gross Income NAP
383 Hillside Apartments Multifamily 25,250 23,300 NAP
384 Walgreen Store (Wolfcreek) Retail--Anchored 1,375 3,476 --
385 Southgate Village Life Care
Center Health Care--Skilled Nursing 6,344 27,000 NAP
386 Walgreen Houston CTL NA 2,086 NAP
387 Kushner Seiden Madison 64th
LP Mixed Use 6,750 4,719 --
388 Miramar/Chapparone Auto
Center Retail--Unanchored 7,074 3,211 10,749
389 Stor-It Rental Storage Self Storage -- 6,076 --
390 Jefferson Centre Office 10,375 19,608 60,000
391 Best Western--Dunn Hotel--Limited Service 21,094 4% of Gross Income NAP
392 Ocean Villa Townhomes #2 Multifamily -- 10,722 NAP
393 Central Park Professional
Center Office -- 4,700 --
394 Safeguard Self Storage Mixed Use 10,621 5,913 --
395 Tuscany Village Phase I Multifamily -- 6,000 NAP
396 Concord Village West Multifamily -- 36,771 NAP
397 Peoria Town Center Retail--Anchored -- -- --
398 Days Inn--Forest Park Hotel--Limited Service 24,375 4% of Gross Income NAP
399 Tech Center Industrial 136,645 16,818 --
400 Amerihost Inn-- Parkersburg Hotel--Limited Service 1,250 4% of Gross Income NAP
401 Comfort Inn--Gaffney, SC Hotel--Limited Service 14,250 4% of Gross Income NAP
402 Food Pavilion Retail--Anchored 30,375 -- --
403 Eckerd Drug Store
(Lexington) CTL -- 2,727 NAP
404 Keep It Self Storage-- Santa
Clarita Self Storage -- 8,134 --
405 Country Creek Multifamily -- 31,680 NAP
406 1803 Park Center Drive Office -- 4,922 29,053
407 Willow Trace Apartments Multifamily 55,541 33,600 NAP
408 Walgreen Coral Springs CTL -- 3,186 NAP
409 Fox Crossing Multifamily -- 26,325 NAP
410 Emmorton Village Shopping
Center Retail--Unanchored 6,088 5,334 --
411 Slauson Plaza Retail--Unanchored -- 12,518 22,007
412 Walgreen Chicago CTL -- 1,823 NAP
413 Warehouse Specialists--
Specialists Ave # 1-4 Industrial 1,875 14,250 --
414 Wanamassa Gardens Apartments Multifamily 1,875 14,850 NAP
415 Inn of Payson Hotel--Limited Service 15,188 4% of Gross Income NAP
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
370 NAP 4/30/98
371 -- 4/14/98
372 $ 50,182 4/30/98
373 NAP 4/16/98
374 8,358(h) 4/16/98
375
NAP 4/16/98
376 NAP 4/30/98
377 -- 4/16/98
378
12,713 4/17/98
379 5,430 4/1/98
380 -- 4/30/98
381 NAP 4/16/98
382
NAP 4/16/98
383 NAP 4/1/98
384 -- 4/8/98
385
NAP 4/16/98
386 NAP 4/16/98
387
-- 4/16/98
388
-- 4/14/98
389 -- 4/16/98
390 55,016 4/1/98
391 NAP 4/16/98
392 NAP 4/30/98
393
-- 4/1/98
394 -- 4/16/98
395 NAP 4/16/98
396 NAP 4/16/98
397 -- 4/30/98
398 NAP 4/16/98
399 151,302(a) 4/16/98
400 NAP 4/16/98
401 NAP 4/16/98
402 -- 4/16/98
403
NAP 4/1/98
404
-- 4/16/98
405 NAP 4/16/98
406 2,421 4/1/98
407 NAP 4/16/98
408 NAP 4/16/98
409 NAP 4/16/98
410
-- 4/16/98
411 5,520 4/30/98
412 NAP 4/16/98
413
-- 4/16/98
414 NAP 4/1/98
415 NAP 4/16/98
</TABLE>
S-75
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
416 River Oaks Apartments Multifamily $ 9,375 $19,089 NAP
417 Val Halla Multifamily 19,119 19,750 NAP
418 Timm Office Building Office 2,375 3,611 $ 24,463
419 Twin Fountains Apartments Multifamily -- 24,000 NAP
420 Hillcroft Plaza Shopping
Center Retail--Unanchored 62,500 -- --
421 Plantation House Multifamily -- 21,875 NAP
422 Olde Towne Shopping Center Retail--Unanchored 2,500 7,290 19,200
423 5 Walk-Up Residential
Buildings (Formerly 70
East) Multifamily 20,938 25,710 NAP
424 Comfort Inn--Franklin Hotel--Limited Service -- 4% of Gross Income NAP
425 Days Inn (Winter Park) Hotel--Limited Service 291,924 4% of Gross Income NAP
426 Office Depot Aurora CTL 12,500 3,094 NAP
427 Tara Woods Apartments Multifamily 7,875 26,500 NAP
428 Sneaker Stadium Retail--Unanchored -- 1,870 --
429 Andora Apartments Multifamily 80,011 36,338 NAP
430 1212-1216 Broadway Mixed Use 4,500 54,384 --
431 3610 Birch Street (Apollo
Office Building) Office 3,165 3,292 14,813
432 Walgreens Pharmacy (Miami) CTL -- 3,480 NAP
433 Eckerd Ventnor CTL -- 2,852 NAP
434 Capitol Warehouse Building Industrial -- 8,000 12,000
435 North Oaks Manor Apartments Multifamily -- 23,709 NAP
436 6100 Capital Center Office -- 4,671 27,565
437 Rite Aid Virginia Beach CTL -- 2,443 NAP
438 Rite Aid Roanoke CTL -- 2,258 NAP
439 The Business Centre at
Riverside Industrial 4,563 4,500 54,545
440 The Manors Apartments Multifamily -- 24,180 NAP
441 FAA Building Office -- 5,255 --
442 Eckerd Houma CTL 8,000 -- NAP
443 Antelope Valley Mall Retail--Anchored -- 1,650 --
444 Chateau Imperial Multifamily 62,500 -- NAP
445 Glenoaks Apartments Multifamily -- -- NAP
446 Lucky/Sav-On Center Retail--Anchored -- 3,530 23,875
447 Eckerd Winslow CTL -- 3,272 NAP
448 Walgreens--Richmond CTL 6,250 3,754 NAP
449 Stoughton Plaza Retail--Anchored 20,031 4,162 12,702
450 PetsMart Inc. Retail--Anchored -- 3,952 --
451 Cobblestone Village Shopping
Center Retail--Unanchored -- 14,469 25,486
452 Villa d'Venus Multifamily 19,450 16,195 NAP
453 Eckerd Drugs Retail--Unanchored -- -- --
454 3848-3870 East Foothill
Boulevard (East Pasadena) Retail--Unanchored -- 1,824 6,000
455 Westporte Apartments Multifamily -- 30,176 NAP
456 Best Western St. Augustine Hotel--Limited Service 8,438 4% of Gross Income NAP
457 Nalley Valley Self Storage Self Storage 81,986 20,298 --
458 Woodley Apartments Multifamily -- 14,274 NAP
459 Hidden Park Apartments Multifamily 137,291 49,190 NAP
460 Saum Apartments Multifamily -- 20,043 NAP
461 Days Inn/Kingsland Hotel--Limited Service 7,650 4% of Gross Income NAP
462 P Street Multifamily 8,750 5,724 NAP
463 Canoga Apartments Multifamily -- -- NAP
464 Rite Aid Pharmacy (Liberty) CTL 1,063 1,789 NAP
465 Woodway Apartments Multifamily -- 14,400 NAP
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
416 NAP 4/29/98
417 NAP 4/16/98
418 $ 2,039 4/17/98
419 NAP 4/30/98
420
-- 4/1/98
421 NAP 4/16/98
422 1,600 4/8/98
423
NAP 4/1/98
424 NAP 4/16/98
425 NAP 4/17/98
426 NAP 4/16/98
427 NAP 4/1/98
428 -- 4/1/98
429 NAP 4/29/98
430 -- 4/16/98
431
-- 4/1/98
432 NAP 4/1/98
433 NAP 4/16/98
434 100,573 4/30/98
435 NAP 4/30/98
436 9,227 4/30/98
437 NAP 4/16/98
438 NAP 4/16/98
439
109,769(e) 4/16/98
440 NAP 4/16/98
441 -- 4/10/98
442 NAP 4/16/98
443 -- 4/16/98
444 NAP 4/16/98
445 NAP 4/30/98
446 7,988 4/30/98
447 NAP 4/16/98
448 NAP 4/1/98
449 -- 4/14/98
450 -- 4/17/98
451
50,972 4/30/98
452 NAP 4/16/98
453 -- 4/16/98
454
500 4/14/98
455 NAP 4/30/98
456 NAP 4/16/98
457 -- 4/16/98
458 NAP 4/30/98
459 NAP 4/30/98
460 NAP 4/30/98
461 NAP 4/16/98
462 NAP 4/16/98
463 NAP 4/30/98
464 NAP 4/1/98
465 NAP 4/16/98
</TABLE>
S-76
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
466 CVS Pharmacy (Philadelphia) CTL -- $2,025 NAP
467 Eckerd Wildwood CTL -- 3,272 NAP
468 Arrow Press Properties Retail--Unanchored $ 86,738 7,937 $ 31,540
469 Northbrook Apartments Multifamily -- 23,276 NAP
470 Best Western Statesville Hotel--Limited Service 2,375 4% of Gross Income NAP
471 CVS Drug Store
(Martinsville) CTL -- 3,152 NAP
472 Sunnyside Acres Mobile Home
Park Mobile Home Park 100,637 -- NAP
473 Auto/Retail Facility
(Lauderhill) Retail--Unanchored -- 4,087 4,500
474 Campostella Corners Shopping
Center Retail--Anchored 14,406 6,694 --
475 Shops at State Bridge Retail--Unanchored -- 2,451 16,177
476 901 W. Jackson Boulevard Office -- 9,601 33,520
477 155 North Beacon Street Mixed Use 6,250 12,230 --
478 Eckerd Oviedo CTL -- -- NAP
479 Fairfield Inn (Musselman-
Mt.Sterling) Hotel--Limited Service -- 4% of Gross Income NAP
480 Hampton Inn (Musselman-
Elizabethtown) Hotel--Limited Service -- 4% of Gross Income NAP
481 Stone Pine Center Retail--Unanchored -- 1,583 --
482 CVS Pharmacy (Vernon) CTL -- 2,625 NAP
483 Shannon Square Retail--Anchored 5,250 4,759 14,092
484 The Aspens Multifamily -- 5,130 NAP
485 Casa Del Sol Retail--Unanchored -- -- --
486 Newtonian Gardens Multifamily 17,500 23,000 NAP
487 Rite Aid Gaylord CTL 5,000 2,972 NAP
488 Springwood Village Shopping
Center Retail--Unanchored -- 9,915 18,862
489 Bella Mar Health Care--Assisted Living 1,000 8,484 NAP
490 Amerihost Inn--Macomb Hotel--Limited Service 2,500 4% of Gross Income NAP
491 Amerihost Inn-Lancaster Hotel--Limited Service 1,500 4% of Gross Income NAP
492 Amerihost Inn--Logan Hotel--Limited Service -- 4% of Gross Income NAP
493 Amerihost Inn-Jeffersonville Hotel--Limited Service -- 4% of Gross Income NAP
494 Eckerd Drug Store
(Jacksonville) Retail--Anchored -- -- --
495 CVS Brazil CTL -- 1,608 NAP
496 Gardner Plaza Retail--Anchored 33,375 11,652 21,357
497 Lobo Canyon Shopping Center Retail--Anchored 6,500 11,461 --
498 Officemax Free-Standing
Retail/Commercial Building Retail--Anchored -- -- 4,992
499 Saint Charles Place Multifamily 17,463 15,552 NAP
500 The In-Line Retail Shop
Space (Peoria) Retail--Anchored -- 2,630 10,162
501 Western Hills Shopping
Center Retail--Anchored 4,073 15,366 21,490
502 Eckerd Drug Store (Ft.
Myers) CTL -- 2,727 NAP
503 Keep it Self Storage--Van
Nuys Self Storage 1,125 8,292 --
504 Crystal Inn (Brigham City) Hotel--Limited Service -- 4% of Gross Income NAP
505 421 Germantown Pike Retail--Unanchored -- 1,012 --
506 Katella/Knott Shopping
Center Retail--Unanchored 34,151 9,331 19,125
507 Amerihost Inn-Sycamore Hotel--Limited Service -- 4% of Gross Income NAP
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
466 NAP 4/1/98
467 NAP 4/16/98
468 $ 40,803 4/30/98
469 NAP 4/30/98
470 NAP 4/16/98
471
NAP 4/1/98
472
NAP 4/30/98
473
-- 4/17/98
474
-- 4/8/98
475 -- 4/1/98
476 8,404 4/30/98
477 -- 4/16/98
478 NAP 4/16/98
479
NAP 4/10/98
480
NAP 4/10/98
481 -- 4/30/98
482 NAP 4/1/98
483 -- 4/3/98
484 NAP 4/30/98
485 -- 4/30/98
486 NAP 4/16/98
487 NAP 4/16/98
488
6,309 4/30/98
489 NAP 4/16/98
490 NAP 4/16/98
491 NAP 4/16/98
492 NAP 4/16/98
493 NAP 4/16/98
494
-- 4/6/98
495 NAP 4/16/98
496 1,780 4/1/98
497 -- 4/16/98
498
-- 4/1/98
499 NAP 4/16/98
500
4,234 4/14/98
501
5,382 4/17/98
502
NAP 4/1/98
503
-- 4/16/98
504 NAP 4/14/98
505 -- 4/16/98
506
1,594 4/30/98
507 NAP 4/16/98
</TABLE>
S-77
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
508 Bashas Square Retail--Anchored -- $13,879 $ 36,000
509 Eckerd Shreveport CTL NA -- NAP
510 825 Pine Street Apartments Multifamily $ 3,793 6,090 NAP
511 Ocean Villa Townhomes #1 Multifamily -- 7,675 NAP
512 Revco Pharmacy (Decatur) CTL -- 2,359 NAP
513 Burbank Villas Apartments Multifamily -- -- NAP
514 Crestwood Apartments Multifamily -- 16,796 NAP
515 121 Greene Street Retail--Unanchored 5,625 1,125 2,500
516 Payson Center Retail--Anchored 12,000 15,506 32,791
517 Sunrise Condominiums Multifamily -- 2,400 NAP
518 Village Woods Commons
Shopping Center Retail--Unanchored -- 8,316 17,436
519 Days Inn (Prescott Valley) Hotel--Limited Service -- 4% of Gross Income NAP
520 Inbus Engineering Building Industrial -- -- --
521 CVS Pharmacy (Lancaster) CTL -- 2,560 NAP
522 Warehouse Specialists-- 1097
Ehlers Road Industrial 5,625 7,894 --
523 Cedars St. Paul Apts. Multifamily -- 25,500 NAP
524 McClintock Office Plaza Office -- 3,458 22,917
525 Galaxy Shopping Center Retail--Unanchored 4,750 5,912 19,450
526 Crestwood Station Shopping
Center Retail--Anchored 781 31,686 58,057
527 Village Pines Multifamily 8,875 6,831 NAP
528 395-435 East O'Keefe Street Multifamily 27,375 17,500 NAP
529 Price Savers Center Retail--Unanchored 39,750 8,128 16,543
530 Indian Village Shopping
Center Retail--Unanchored 4,375 15,630 43,763
531 Caledon Wood Professional
Park Office -- 2,433 12,000
532 4445 West 16th Street Office 525 8,544 32,810
533 6 Fortune Drive Office -- 3,975 35,245
534 Fairmount Apartments Multifamily 4,313 16,616 NAP
535 Palms Apartments Multifamily -- -- NAP
536 Georgetown Village
Apartments Multifamily 42,813 21,106 NAP
537 336 Washington Street
(Boston Private) Retail--Unanchored 18,688 3,082 5,028
538 CVS Tipton CTL -- 1,608 NAP
539 State Farm Cranford CTL -- 10,576 NAP
540 La Jolla Court Apartments Multifamily -- 19,944 NAP
541 CVS York CTL -- 3,217 NAP
542 Hodges Warehouse (Hodges II) Industrial 29,375 34,410 --
543 Kling Street Apartments Multifamily -- 5,596 NAP
544 Eckerd Drug Store (Camden) CTL 4,813 2,727 NAP
545 CVS Drug Store (Mableton) CTL -- 2,531 NAP
546 CVS Rockville CTL -- 1,608 NAP
547 CVS Edinburgh CTL -- 1,608 NAP
548 Fry's Greenfield Plaza Retail--Unanchored -- 13,802 22,036
549 Target Center Retail--Anchored -- 2,430 14,890
550 CVS Greece CTL -- 1,519 NAP
551 Ames Plaza (Amenia) Retail--Anchored 4,813 21,600 13,716
552 North Creek Townhomes Multifamily 1,188 10,476 NAP
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
508 $ 9,016 4/14/98
509 NAP 4/16/98
510 NAP 4/30/98
511 NAP 4/30/98
512 NAP 4/1/98
513 NAP 4/30/98
514 NAP 4/16/98
515 208 4/1/98
516 2,733 4/14/98
517 NAP 4/30/98
518
4,359 4/6/98
519 NAP 4/28/98
520 -- 4/30/98
521 NAP 4/6/98
522
-- 4/16/98
523 NAP 4/30/98
524 -- 4/30/98
525 4,863 4/14/98
526
9,492 4/1/98
527 NAP 4/24/98
528 NAP 4/16/98
529 1,379 4/14/98
530
10,962 4/14/98
531
2,002 4/8/98
532 2,734 4/1/98
533 -- 4/28/98
534 NAP 4/16/98
535 NAP 4/30/98
536
NAP 4/8/98
537
419 4/14/98
538 NAP 4/16/98
539 NAP 4/16/98
540 NAP 4/1/98
541 NAP 4/16/98
542 -- 4/1/98
543 NAP 4/30/98
544 NAP 4/30/98
545 NAP 4/6/98
546 NAP 4/16/98
547 NAP 4/16/98
548 1,836 4/14/98
549 1,233 4/30/98
550 NAP 4/16/98
551 3,434 4/1/98
552 NAP 4/16/98
</TABLE>
S-78
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
553 Hilltop Village Shopping
Center Retail--Anchored $ 66,875 $38,160 $ 31,936
554 Friendly Square Shopping
Center Retail--Unanchored 10,931 9,324 32,520
555 Eckerd Oldsmar CTL -- -- NAP
556 Henderson Mall Retail--Unanchored -- 1,059 --
557 Anchor Self Storage--
Glendora Self Storage -- 5,200 --
558 8614 Burton Way Apts. Multifamily -- 3,942 NAP
559 Four Industrial Buildings
(Great S.W. Industrial) Industrial 23,750 28,565 57,131
560 Spa Business Center Office -- 4,039 12,653
561 Warehouse Specialists--
Harrison Street Industrial 6,418 11,988 --
562 Port Jefferson Medical Park Office 15,875 13,712 36,000
563 Ashcroft Industrial Park Industrial 69,303 14,708 15,000
564 8586-8588 Potter Park Drive
(Palmer Ranch) Office 1,019 1,827 18,000
565 New Hampshire Apartments Multifamily 18,844 19,509 NAP
566 Villa Fontana Apartments Multifamily 3,694 10,400 NAP
567 Briarcliff Multifamily 11,875 26,292 NAP
568 Norton Plaza Shopping Center Retail--Anchored 24,938 10,630 4,954
569 Duna Vista Mobile Home Park Mobile Home Park -- -- NAP
570 Calvert Apartments Multifamily -- 23,945 NAP
571 177 E. Evelyn Avenue Retail--Unanchored -- 6,008 17,584
572 Oakland State Garage Industrial -- 2,880 9,312
573 IHOP Kannapolis CTL -- -- NAP
574 Park Rochester Apartments Multifamily -- -- NAP
575 West Town Professional
Center Office -- 8,388 19,143
576 CVS Aiken CTL -- -- NAP
577 Garage Loft Apartments Multifamily 30,000 5,175 NAP
578 Rite-Aid Pharmacy
(Waynesburg) CTL -- 1,812 NAP
579 Forest Glen Multifamily 5,788 14,400 NAP
580 Revco Drug Store Retail--Anchored -- 1,064 --
581 Rite Aid Pharmacey
(Hogansville) CTL -- 2,688 NAP
582 Revco Pharmacy (Oak Ridge) CTL -- 1,608 NAP
583 Imperial Plaza Office
Building Office -- 3,492 12,000
584 Overlook Court Office 5,500 15,996 6,684
585 10051 Pasadena Avenue Office 2,622 2,272 45,000
586 Clifford Pacific Business
Park Industrial -- 4,850 5,039
587 Glynbrook Estates Multifamily 156 7,700 NAP
588 Cypress Winds Multifamily 2,438 13,048 NAP
589 66 West 84th Street Retail--Unanchored -- 334 9,996
590 Canon Perdido Office 1,243 4,332 --
591 Panorama Medical Arts
Building Office -- 5,079 36,861
592 IHOP Gastonia CTL -- -- NAP
593 Taylor Gardens Multifamily 5,313 14,310 NAP
594 Tara Ridge Apartments Multifamily 22,125 15,610 NAP
595 Camelot and Circle Inn
Mobile Home Parks Mobile Home Park 13,000 4,455 NAP
596 Shoppes of Pembroke Retail--Unanchored 4,875 3,300 14,052
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
553
$ 5,046 4/8/98
554
-- 4/14/98
555 NAP 4/16/98
556 -- 4/16/98
557
-- 4/16/98
558 NAP 4/1/98
559
75,145 4/1/98
560 29,483 4/30/98
561
-- 4/16/98
562 56,340 4/1/98
563 3,750 4/3/98
564
-- 4/8/98
565 NAP 4/16/98
566 NAP 4/1/98
567 NAP 4/16/98
568 4,954 4/29/98
569 NAP 4/30/98
570 NAP 4/30/98
571 1,457 4/30/98
572 3,116 4/30/98
573 NAP 4/16/98
574 NAP 4/30/98
575
3,207 4/30/98
576 NAP 4/16/98
577 NAP 4/1/98
578
NAP 4/1/98
579 NAP 4/16/98
580 -- 4/16/98
581
NAP 4/1/98
582 NAP 4/1/98
583
-- 4/1/98
584 -- 4/1/98
585 3,743 4/30/98
586
833 4/30/98
587 NAP 4/16/98
588 NAP 4/16/98
589 -- 4/1/98
590 -- 4/30/98
591
12,316 4/30/98
592 NAP 4/16/98
593 NAP 4/16/98
594 NAP 4/1/98
595
NAP 4/16/98
596 3,513 4/8/98
</TABLE>
S-79
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
597 Normandy Retail Center Retail--Anchored $ 12,100 $2,952 $ 7,800
598 La Tijera Manor Apartments Multifamily -- 8,000 NAP
599 Applied Companies Building Industrial 7,707 3,523 4,373
600 238-268 Post Road Retail--Unanchored -- 1,434 12,583
601 Warehouse Specialists-- 1286
Ehlers Road Industrial -- 8,400 --
602 Warehouse Specialists--
Dixie Street Industrial 47,812 13,000 --
603 Unicom Plaza Office -- 3,276 37,068
604 IHOP Wilmington CTL -- -- NAP
605 Eckerd Kernersville CTL -- 2,182 NAP
606 Eckerds Easley CTL 2,688 1,641 NAP
607 Rincon Plaza Retail--Anchored -- 8,123 17,057
608 Eckerd Store (Mt. Holly) CTL -- 1,091 NAP
609 University Court Apartments Multifamily -- 12,670 NAP
610 Patrick Business Park Industrial -- 4,032 6,000
611 Eckerd Store (Florence) CTL -- 2,725 NAP
612 222 Post Road Retail--Unanchored -- 1,882 11,650
613 Ocean Villa Townhomes #3 Multifamily -- 6,162 NAP
614 Kennestone Corners Business
Center Industrial 31,500 3,334 12,084
615 Kings Tree Apartments Multifamily 20,188 22,800 NAP
616 Rite Aid Pharmacy
(Williamsport) CTL -- 2,501 NAP
617 CVS Pharmacy (Westbrook) CTL -- 2,196 NAP
618 Brookhill Plaza Office -- 7,044 14,603
619 Lexington Village Apartments Multifamily 2,000 9,600 NAP
620 2715 Agate Court Industrial 43,991 3,843 16,854
621 Townsgate Atrium Office -- -- --
622 Carey Hill Plaza Retail--Anchored 11,250 5,809 --
623 Edison Apartments Multifamily 18,573 13,560 NAP
624 Warehouse Specialists-- Bell
Street Industrial -- 9,700 --
625 Warehouse Specialists--
Combined Locks Industrial -- 6,240 --
626 A-Advance Self-Storage Self Storage -- 4,764 --
627 Williamstown Bay Multifamily--Section 42 -- 7,000 NAP
628 52 Liberty Street Multifamily 4,438 9,864 NAP
629 Highview Apartments Multifamily 10,500 9,480 NAP
630 Kingwood Multifamily 28,469 30,016 NAP
631 Nob Hill Office Park Office -- 4,488 15,240
632 North Post Oak Business
Center Office 3,125 4,652 15,506
633 Morningside Square
Apartments Multifamily -- 9,996 NAP
634 Randall Court Apartments Multifamily 1,719 8,796 NAP
635 Dillard Office Building Office 6,750 2,976 --
636 128th Street Warehouse Industrial 7,813 6,233 18,621
637 Briarcliff Mews Apartments Multifamily 6,875 8,192 NAP
638 Westgate Apartments Multifamily -- -- NAP
639 Broadmoor Apartments Multifamily 16,810 -- NAP
640 Wolfpack Village Apartments Multifamily 77,500 12,491 NAP
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
597 $ 62,025 c) 4/22/98
598 NAP 4/30/98
599 356 4/30/98
600 1,050 3/31/98
601
-- 4/16/98
602
-- 4/16/98
603 29,428 4/30/98
604 NAP 4/16/98
605 NAP 4/16/98
606 NAP 4/16/98
607 1,421 4/14/98
608 NAP 4/30/97
609 NAP 4/30/98
610 1,995 4/30/98
611 NAP 4/30/98
612 19,426 4/29/98
613 NAP 4/30/98
614
-- 4/8/98
615 NAP 4/16/98
616
NAP 4/1/98
617 NAP 4/1/98
618 35,174 4/30/98
619 NAP 4/1/98
620 2,803 4/30/98
621 -- 4/30/98
622 -- 4/16/98
623 NAP 4/30/98
624
-- 4/16/98
625
-- 4/16/98
626 -- 4/30/98
627 NAP 4/16/98
628 NAP 4/16/98
629 NAP 4/16/98
630 NAP 4/16/98
631 1,270 4/29/98
632
49,162 4/1/98
633
NAP 4/30/98
634 NAP 4/14/98
635 -- 4/1/98
636 30,003 4/1/98
637 NAP 4/1/98
638 NAP 4/30/98
639 NAP 4/30/98
640 NAP 4/28/98
</TABLE>
S-80
<PAGE>
<TABLE>
<CAPTION>
INITIAL
DEPOSIT ANNUAL ANNUAL
TO CAPITAL DEPOSIT TO DEPOSIT TO
CONTROL IMP. REPLACEMENT TI/LC
NO. PROPERTY NAME PROPERTY TYPE RESERVE ($) RESERVE ($) RESERVE ($)
- ----------- ---------------------------- ---------------------------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
641 William Tell Apartments Multifamily -- $24,000 NAP
642 13Th South Self Storage Self Storage -- -- --
643 19-25 Brighton Avenue Multifamily $ 23,681 7,750 NAP
644 The In-Line Shop Space
(Chandler) Retail--Anchored 10,269 5,922 $ 12,440
645 Haverford Apartments Multifamily -- -- NAP
646 Crates shopping center Mixed Use 10,505 2,435 --
647 Dahnert Park Apartments Multifamily 2,313 5,400 NAP
648 Roger Post Multifamily 6,244 12,540 NAP
649 Ruffolo Plaza Retail--Unanchored -- 6,296 22,000
650 Continental House Multifamily 8,750 -- NAP
651 NTB Store Site CTL -- 5,585 NAP
652 Pier 1 Imports Retail--Anchored -- 904 4,560
653 Sunbelt Newport News CTL -- -- NAP
654 Northpointe Apartments Multifamily 24,029 8,008 NAP
655 Francesca Apartments Multifamily 54,875 13,986 NAP
656 514--524 Huron Blvd. SE Multifamily 5,328 12,104 NAP
657 4030 Pacheco Boulevard Industrial -- 4,326 3,380
658 US Postal Service CTL 1,000 1,293 NAP
659 Las Flores Apartments Multifamily -- 13,488 NAP
660 Woodlawn Village Multifamily 7,688 10,404 NAP
661 Monmouth Beach Village Multifamily--Section 42 2,419 5,000 NAP
662 325 North Howard Street Multifamily -- 4,500 NAP
663 Pikesville Professional
Building Office 9,200 2,904 --
664 Washington Place Multifamily--Section 42 -- 8,400 NAP
665 1416-1430 S. Main Street Retail--Unanchored 953 2,725 --
666 Hodges Warehouse and
Corporate Offices (Hodges
I) Industrial 3,750 5,280 --
667 Commerce Square Shopping
Center Retail--Anchored -- -- --
668 Villa Apartments Multifamily -- 12,267 NAP
669 Magnolia Multifamily -- 4,767 NAP
670 Blockbuster Video Store Retail--Anchored -- -- 7,000
671 Creamery Hills Multifamily--Section 42 -- 3,600 NAP
672 13348 Newport Boulevard
(Walgreen--Tustin) CTL -- -- NAP
673 Wells Court Multifamily--Section 42 -- 15,500 NAP
674 Logan Square Shopping Center Retail--Anchored -- 680 --
675 2486 Morris Avenue Multifamily 2,063 5,280 NAP
676 Branford Apartments Multifamily -- 8,260 NAP
<CAPTION>
CURRENT AS OF
BALANCE DATE OF
CONTROL OF TI/LC RESERVE
NO. RESERVE ($) ACCOUNTS
- ----------- ----------- ---------
<S> <C> <C>
641 NAP 4/30/98
642 -- 4/30/98
643 NAP 4/16/98
644
$ 2,073 4/14/98
645 NAP 4/30/98
646 72,187 a) 4/16/98
647 NAP 4/1/98
648 NAP 4/16/98
649 100,857(a) 4/16/98
650 NAP 4/16/98
651 NAP 4/1/98
652 -- 4/1/98
653 NAP 4/16/98
654 NAP 4/30/98
655 NAP 4/1/98
656 NAP 4/30/98
657 837 4/30/98
658 NAP 4/16/98
659 NAP 4/30/98
660 NAP 4/16/98
661 NAP 4/16/98
662 NAP 4/30/98
663
-- 4/16/98
664 NAP 4/16/98
665 -- 4/30/98
666
-- 4/1/98
667
-- 4/16/98
668 NAP 4/30/98
669 NAP 4/16/98
670 3,518 4/30/98
671 NAP 4/16/98
672
NAP 4/1/98
673 NAP 4/16/98
674 -- 4/16/98
675 NAP 4/16/98
676 NAP 4/30/98
</TABLE>
- ------------------------
(a) Tenant-specific lease reserve
(b) Tenant-specific lease reserve; funds escrowed monthly for first 24 months
(c) Includes $61,375 tenant specific lease reserve.
(d) Includes $200,000 tenant specific lease reserve.
(e) Funds escrowed monthly for first 22 months of term
(f) Includes $166,353 tenant specific lease reserve.
(g) Tenant-specific lease reserve; funds escowed monthly until March 1999
(m) Tenat-specific lease reserve capped at $300,000
(I) Capped at $225,000, to be maintained over term
(j) Tenant-specific lease reserve; funds escrowed until 12/1999.
(k) Tenant-specific reserve; funds escrowed monthly until 11/2003.
(l) Tenant-specific reserve; funds escrowed monthly until 1999.
S-81
<PAGE>
THE MORTGAGE LOAN SELLERS
On or about May 28, 1998 (the "Closing Date"), the Depositor will acquire
the Mortgage Loans from the Mortgage Loan Sellers pursuant to separate
agreements (the "Mortgage Loan Purchase Agreements"). The Mortgage Loan Sellers
acquired or originated the Mortgage Loans as described above under "--Mortgage
Loan History."
ASSIGNMENT OF THE MORTGAGE LOANS; REPURCHASES
On or prior to the Closing Date, the Depositor will transfer the Mortgage
Loans, without recourse, to the Trustee for the benefit of the
Certificateholders. In connection with such transfer, the Depositor will require
each Mortgage Loan Seller to deliver to the Trustee or to a document custodian
appointed by the Trustee (a "Custodian"), among other things, the following
documents with respect to each Mortgage Loan sold by such Mortgage Loan Seller
(collectively, as to each Mortgage Loan, the "Mortgage File"): (i) the original
Mortgage Note, endorsed, without recourse, to the order of the Trustee (or, if
the original Mortgage Note has been lost, an affidavit to such effect from the
Mortgage Loan Seller or another prior holder, together with a copy of the
Mortgage Note); (ii) the original or a copy of the Mortgage, together with an
original or copy of any intervening assignments of the Mortgage, in each case
with evidence of recording indicated thereon; (iii) the original or a copy of
any related assignment of leases and of any intervening assignments thereof (if
such item is a document separate from the Mortgage), with evidence of recording
indicated thereon; (iv) an original assignment of the Mortgage in favor of the
Trustee and in recordable form; (v) an original assignment of any related
assignment of leases (if such item is a document separate from the Mortgage) in
favor of the Trustee and in recordable form; (vi) originals or copies of all
written modification agreements in those instances in which the terms or
provisions of the Mortgage or Mortgage Note have been modified; (vii) the
original or a copy of the policy or certificate of lender's title insurance
issued on the date of the origination of such Mortgage Loan, or, if such policy
has not been issued, an irrevocable, binding commitment to issue such title
insurance policy; (viii) any file copies of any UCC financing statements and
related amendments and continuation statements in the possession of the
applicable Mortgage Loan Seller and (ix) an original assignment in favor of the
Trustee of any financing statement executed and filed in favor of the related
Mortgage Loan Seller in the relevant jurisdiction.
The Trustee or a Custodian on its behalf will be required to review each
Mortgage File within a specified period following its receipt thereof. If any of
the above-described documents is found during the course of such review to be
missing from any Mortgage File or defective, and in either case such omission or
defect materially and adversely affects the interests of the Certificateholders,
the applicable Mortgage Loan Seller, if it cannot deliver the document or cure
the defect (other than omissions solely due to a document not having been
returned by the related recording office) within a period of 90 days following
its receipt of notice thereof, will be obligated pursuant to the applicable
Mortgage Loan Purchase Agreement (the relevant rights under which will be
assigned by the Depositor to the Trustee) to repurchase the affected Mortgage
Loan at a price (the "Purchase Price") generally equal to the sum of (i) the
unpaid principal balance of such Mortgage Loan, (ii) unpaid accrued interest on
such Mortgage Loan (calculated at the Mortgage Rate) to but not including the
Due Date in the Collection Period in which the purchase is to occur, and (iii)
certain related servicing expenses that are reimbursable to the Master Servicer
or the Special Servicer plus any interest thereon and on any related P&I
Advances; provided that such Mortgage Loan Seller will have an additional 90-day
period to deliver the document or cure the defect, as the case may be, if it is
diligently proceeding to effect such delivery or cure and has delivered to the
Trustee an officer's certificate that describes the reasons that such delivery
or cure was not effected within the first 90-day cure period and the actions it
proposes to take to effect such delivery or cure, and which states that it
anticipates such delivery or cure will be effected within the additional 90-day
period. The foregoing repurchase obligation will constitute the sole remedy
available to the Certificateholders and the Trustee for any uncured failure to
deliver, or any uncured defect in, a constituent Mortgage Loan document. The
applicable Mortgage Loan Seller will be solely responsible for such repurchase
obligation, and such
S-82
<PAGE>
obligation will not be the responsibility of the Depositor, any other Mortgage
Loan Seller or any of the affiliates of any of them.
The Pooling and Servicing Agreement will require the Master Servicer
promptly to cause each of the assignments described in clauses (iv), (v) and
(ix) of the second preceding paragraph to be submitted for recording in the real
property records of the jurisdiction in which the related Mortgaged Property is
located. See "Description of the Pooling Agreements--Assignment of Mortgage
Loans; Repurchases" in the Prospectus.
REPRESENTATIONS AND WARRANTIES; REPURCHASES
In each Mortgage Loan Purchase Agreement, the applicable Mortgage Loan
Seller will represent and warrant with respect to each Mortgage Loan sold by it
(subject to certain exceptions specified in the related Mortgage Loan Purchase
Agreement), as of the Closing Date, or as of such other date specifically
provided in the representation and warranty, among other things, generally that:
(i) the information set forth in the schedule of Mortgage Loans attached to the
applicable Mortgage Loan Purchase Agreement (which contains certain of the
information set forth in Annex A) is true and correct in all material respects
as of the Cut-off Date; (ii) if such Mortgage Loan was originated by the
applicable Mortgage Loan Seller or an affiliate thereof, then, as of the date of
its origination, such Mortgage Loan complied in all material respects with, or
was exempt from, all requirements of federal, state or local law relating to the
origination of such Mortgage Loan and, if such Mortgage Loan was not originated
by the applicable Mortgage Loan Seller or an affiliate thereof, then, to the
best of such Seller's knowledge after having performed the type of due diligence
customarily performed by prudent institutional commercial and multifamily
mortgage lenders, as of the date of its origination, such Mortgage Loan complied
in all material respects with, or was exempt from, all requirements of federal,
state or local law relating to the origination of such Mortgage Loan; (iii) the
applicable Mortgage Loan Seller owns the Mortgage Loan, has good and marketable
title thereto, has full right and authority to sell, assign and transfer the
Mortgage Loan and is transferring the Mortgage Loan free and clear of any and
all liens, pledges, charges or security interests; (iv) the proceeds of such
Mortgage Loan have been fully disbursed and there is no requirement for future
advances thereunder; (v) to the actual knowledge of the applicable Mortgage Loan
Seller, each of the related Mortgage Note, related Mortgage, related assignment
of leases, if any, and other agreements executed in connection therewith is the
legal, valid and binding obligation of the maker thereof (subject to any non-
recourse provisions therein and any state anti-deficiency legislation),
enforceable in accordance with its terms, except as such enforcement may be
limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors' rights generally, and by general
principles of equity (regardless of whether such enforcement is considered in a
proceeding in equity or at law); and, as of the date of its origination, there
was no valid offset, defense, counterclaim or right to rescission with respect
to any of the related Mortgage Note, Mortgage or other agreements executed in
connection with such Mortgage Loan, and, as of the Cut-off Date, to the actual
knowledge of the applicable Mortgage Loan Seller, there is no valid offset,
defense, counterclaim or right to rescission with respect to such Mortgage Note,
Mortgage or other agreements; (vi) the assignment of the related Mortgage in
favor of the Trustee constitutes the legal, valid and binding assignment of such
Mortgage to the Trustee (subject to customary limitations); (vii) the related
Mortgage (or, in the case of a cross-collateralized Mortgage Loan, a related
Mortgage) is a valid and enforceable first lien on the related Mortgaged
Property (or, in the case of a cross-collateralized Mortgage Loan, the related
primary Mortgaged Property), which Mortgaged Property is free and clear of all
encumbrances and liens having priority over or on a parity with the first lien
of such Mortgage, except for (a) liens for real estate taxes and special
assessments not yet due and payable, (b) covenants, conditions and restrictions,
rights of way, easements and other matters of public record as of the date of
recording of such Mortgage, such exceptions appearing of record being
customarily acceptable to mortgage lending institutions generally or
specifically reflected in the appraisal of such Mortgaged Property made in
connection with the origination of such Mortgage Loan, (c) other matters to
which like
S-83
<PAGE>
properties are commonly subject which do not, individually or in the aggregate,
materially interfere with the benefits of the security intended to be provided
by such Mortgage or materially affect the value or marketability of such
Mortgaged Property and (d) if such Mortgage secures a cross-collateralized
Mortgage Loan, any lien securing a related cross-collateralized Mortgage Loan;
(viii) to the actual knowledge of the applicable Mortgage Loan Seller, all taxes
and governmental assessments that prior to the Cut-off Date became due or owing
in respect of, and affect, the related Mortgaged Property (or, in the case of a
cross-collateralized Mortgage Loan, the related primary Mortgaged Property) have
been paid, or an escrow of funds in an amount sufficient to cover such payments
has been established; (ix) as of the date of its origination, there was no
proceeding pending for the total or partial condemnation of the related
Mortgaged Property that materially affects the value thereof, and such Mortgaged
Property was free of material damage; and, as of the Cut-off Date, the
applicable Mortgage Loan Seller has not received any notice of the commencement
of any proceeding for the total or partial condemnation of the related Mortgaged
Property (or, in the case of a cross-collateralized Mortgage Loan, the related
primary Mortgaged Property) that materially affects the value thereof, and such
Mortgaged Property is free of material damage; (x) as of the date of its
origination, all insurance required under the Mortgage for such Mortgage Loan
was in full force and effect with respect to the related Mortgaged Property (or,
in the case of a cross-collateralized Mortgage Loan, the related primary
Mortgaged Property); (xi) as of the Cut-off Date, no Mortgage Loan is, or in the
12 months prior to the Cut-Off Date, has been, 30 days or more past due in
respect of any Scheduled Payment; and (xii) one or more environmental site
assessments were performed with respect to the related Mortgaged Property (or,
in the case of a cross-collateralized Mortgage Loan, the related primary
Mortgaged Property) during the 18-month period preceding the Cut-off Date, and
the Seller, having made no independent inquiry other than to review the
report(s) prepared in connection with the assessment(s) referenced herein, has
no knowledge of any material and adverse environmental condition or circumstance
affecting such Mortgaged Property that was not disclosed in such report(s).
In the case of a breach of any of the foregoing representations and
warranties that materially and adversely affects the interests of the
Certificateholders, the applicable Mortgage Loan Seller, if it cannot cure such
breach within a period of 90 days following its receipt of notice thereof, will
be obligated pursuant to the applicable Mortgage Loan Purchase Agreement (the
relevant rights under which will be assigned by the Depositor to the Trustee) to
repurchase the affected Mortgage Loan at the applicable Purchase Price; provided
that such Mortgage Loan Seller will have an additional 90-day period to cure
such breach if it is diligently proceeding with such cure and has delivered to
the Trustee an officer's certificate that describes the reasons that a cure was
not effected within the first 90-day cure period and the actions it proposes to
take to effect such cure and which states that it anticipates such cure will be
effected within the additional 90-day period.
The foregoing repurchase obligation will constitute the sole remedy
available to the Certificateholders and the Trustee for any uncured breach of
any Mortgage Loan Seller's representations and warranties regarding its Mortgage
Loans. The applicable Mortgage Loan Seller will be the sole warranting party in
respect of the Mortgage Loans sold by such Mortgage Loan Seller to the
Depositor, and none of the Depositor, any other Mortgage Loan Seller or any
affiliates of them will be obligated to repurchase any such affected Mortgage
Loan in connection with a breach of the applicable Mortgage Loan Seller's
representations and warranties if the applicable Mortgage Loan Seller defaults
on its obligation to do so. See "Description of the Pooling Agreements--
Representations and Warranties; Repurchases" in the Prospectus.
CHANGES IN MORTGAGE POOL CHARACTERISTICS
The description in this Prospectus Supplement of the Mortgage Pool and the
Mortgaged Properties is based upon the Mortgage Pool as expected to be
constituted at the time the Offered Certificates are issued. Prior to the
issuance of the Offered Certificates, a Mortgage Loan may be removed from the
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<PAGE>
Mortgage Pool if the Depositor deems such removal necessary or appropriate or if
it is prepaid. The Depositor believes that the information set forth herein will
be representative of the characteristics of the Mortgage Pool as it will be
constituted at the time the Offered Certificates are issued, although the range
of Mortgage Rates, maturities and certain other characteristics of the Mortgage
Loans in the Mortgage Pool may vary.
A Current Report on Form 8-K (the "Form 8-K") will be available to
purchasers of the Offered Certificates on or shortly after the Closing Date and
will be filed, together with the Pooling and Servicing Agreement, with the
Securities and Exchange Commission within fifteen days after the initial
issuance of the Offered Certificates. If Mortgage Loans are removed from or
added to the Mortgage Pool as described in the preceding paragraph, such removal
or addition will be noted in the Form 8-K.
SERVICING OF THE MORTGAGE LOANS
GENERAL
The Master Servicer and the Special Servicer, either directly or through
sub-servicers, will be required to service and administer the Mortgage Loans on
behalf of the Trustee for the benefit of the Certificateholders, in accordance
with applicable law, the terms of the Pooling and Servicing Agreement and the
terms of the respective Mortgage Loans and, to the extent consistent with the
foregoing, in the same manner in which, and with the same care, skill, prudence
and diligence with which, the Master Servicer or the Special Servicer, as the
case may be, generally services and administers similar mortgage loans (a) for
other third-parties, giving due consideration to customary and usual standards
of practice of prudent institutional commercial mortgage lenders servicing their
own loans and to the maximization of the recovery on such Mortgage Loans on a
net present value basis, or (b) held in its own portfolio, whichever servicing
procedure is of a higher standard, but without regard to (i) any relationship
that the Master Servicer or the Special Servicer, as the case may be, or any
affiliate thereof may have with the related borrower; (ii) the ownership of any
Certificate by the Master Servicer or the Special Servicer, as the case may be,
or by any affiliate thereof; (iii) the right of the Master Servicer or the
Special Servicer, as the case may be, to receive compensation or other fees for
its services rendered pursuant to the Pooling and Servicing Agreement; (iv) the
obligations of the Master Servicer or the Special Servicer, as the case may be,
to make Advances (as defined herein); (v) the ownership, servicing or management
for others of any other mortgage loans or real property; and (vi) any obligation
of the Master Servicer, as a Mortgage Loan Seller or as an affiliate thereof, to
pay any indemnity with respect to or repurchase any Mortgage Loan.
Set forth below, following the subsection captioned "--The Master Servicer
and Special Servicer," is a description of certain pertinent provisions of the
Pooling and Servicing Agreement relating to the servicing of the Mortgage Loans.
Reference is also made to the Prospectus, in particular to the section captioned
"Description of the Pooling Agreements," for important information in addition
to that set forth herein regarding the terms and conditions of the Pooling and
Servicing Agreement as they relate to the rights and obligations of the Master
Servicer and Special Servicer thereunder. The Special Servicer generally will
have all of the rights to indemnity and reimbursement, and limitations on
liability, that the Master Servicer is described as having in the Prospectus and
the Special Servicer rather than the Master Servicer will perform the servicing
duties described in the Prospectus with respect to Specially Serviced Mortgage
Loans and REO Properties (each as described herein). In addition to the
circumstances for resignation of the Master Servicer set forth in the
Prospectus, the Master Servicer and the Special Servicer shall have the right to
resign at any other time provided that (i) each of the Rating Agencies confirms
in writing that the successor's appointment will not result in a withdrawal,
qualification or downgrade of any rating or ratings assigned to any Class of
Certificates, (ii) the resigning party pays all costs and expenses in connection
with such transfer, and (iii) the successor accepts appointment prior to the
effectiveness of such resignation. See "Certain Matters Regarding the Master
Servicer and the Depositor" in the Prospectus.
S-85
<PAGE>
THE MASTER SERVICER AND SPECIAL SERVICER
FUNB, in its capacity as Master Servicer under the Pooling and Servicing
Agreement (in such capacity, the "Master Servicer") will be responsible for
servicing the Mortgage Loans (other than Specially Serviced Mortgage Loans and
REO Properties). Although the Master Servicer is authorized to employ agents,
including sub-servicers, to directly service the Mortgage Loans for which it is
responsible, the Master Servicer will remain liable for its servicing
obligations under the Pooling and Servicing Agreement. The Master Servicer is a
wholly owned subsidiary of First Union Corporation. The Master Servicer's
principal servicing offices are located at Charlotte Plaza, 23rd Floor, 201
South College Street, Charlotte, North Carolina 28288-1075.
As of March 31, 1998, the Master Servicer and its affiliates serviced
approximately 3,999 commercial and multifamily loans, totaling approximately
$19.6 billion in aggregate outstanding principal amounts, including loans
securitized in mortgage-backed securitization transactions.
The initial Special Servicer will be CRIIMI MAE Services Limited
Partnership, a Maryland limited partnership, the general partner of which is
CRIIMI MAE Services, Inc. The Special Servicer will be responsible for
performing certain servicing functions with respect to Mortgage Loans that, in
general, are in default or as to which default is imminent, for administering
any REO Property and for performing certain other functions with respect to all
Mortgage Loans, as set forth in the Pooling and Servicing Agreement. As of
December 31, 1997, the Special Servicer was responsible for performing certain
servicing responsibilities in respect of approximately $16.3 billion commercial
and multifamily loans and REO Properties. It is anticipated that the Special
Servicer or an affiliate of the Special Servicer will purchase all or a
significant portion of certain Classes of the Private Certificates on or about
the Closing Date. The Special Servicer's principal offices are located at 11200
Rockville Pike, Rockville, Maryland 20852.
The information set forth herein concerning the Master Servicer and the
Special Servicer has been provided by the Master Servicer and Special Servicer,
respectively, and none of the Depositor or either Underwriter makes any
representation or warranty as to the accuracy or completeness of such
information.
THE SPECIAL SERVICER
The Pooling and Servicing Agreement permits the holder (or holders) of the
majority of the Voting Rights allocated to the Controlling Class of Sequential
Pay Certificates to replace the Special Servicer and to select a representative
(the "Controlling Class Representative") from whom the Special Servicer will
seek advice and approval and take direction under certain circumstances. See
"Servicing of the Mortgage Loans--The Controlling Class Representative." The
"Controlling Class of Sequential Pay Certificates" is the Class of Sequential
Pay Certificates that has the latest alphabetical Class designation and that has
a Certificate Balance that is greater than 25% of its original Certificate
Balance; provided that if no Class of Sequential Pay Certificates has a
Certificate Balance that is greater than 25% of its original Certificate
Balance, the then outstanding Class of Sequential Pay Certificates with the
latest alphabetical Class designation will be the "Controlling Class of
Sequential Pay Certificates." The Class A-1 and Class A-2 Certificates will be
treated as one Class for determining the Controlling Class of Sequential Pay
Certificates. Any such replacement of a Special Servicer will be subject to,
among other things, (i) the delivery of notice of the proposed replacement to
the Rating Agencies and receipt of notice from the Rating Agencies that the
replacement will not result in a qualification, downgrade or withdrawal of any
of the then current ratings assigned to the Certificates, and (ii) the written
agreement of the successor Special Servicer to be bound by the terms and
conditions of the Pooling and Servicing Agreement. Subject to the foregoing, any
Certificateholder or affiliate thereof may be appointed as Special Servicer. See
"Description of Certificates--Voting Rights" herein.
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The Special Servicer will be responsible for servicing and administering any
Mortgage Loan as to which (a) any Monthly Payment shall be delinquent 45 or more
days (or, in the case of a Balloon Payment, if the Master Servicer determines
that the related borrower has obtained a binding commitment to refinance, such
longer period of delinquency (not to exceed 120 days) within which such
refinancing is expected to occur); (b) the Master Servicer shall have determined
that a default in making a Monthly Payment is likely to occur within 30 days and
is likely to remain unremedied for at least 60 days (or, in the case of a
Balloon Payment, if the Master Servicer determines that the related borrower has
obtained commitment to refinance, such longer period of delinquency (not to
exceed 120 days) within which such refinancing is expected to occur); (c) there
shall have occurred a default (other than as described in clause (a) above) that
materially impairs the value of the Mortgaged Property as security for the
Mortgage Loan or otherwise materially adversely affects the interests of
Certificateholders and that continues unremedied for the applicable grace period
under the terms of the Mortgage Loan (or, if no grace period is specified, for
30 days); (d) a decree or order under any bankruptcy, insolvency or similar law
shall have been entered against the related borrower and such decree or order
shall have remained in force, undischarged or unstayed for a period of 60 days;
(e) the related borrower shall consent to the appointment of a conservator or
receiver or liquidator in any insolvency or similar proceedings of or relating
to such related borrower or of or relating to all or substantially all of its
property; (f) the related borrower shall admit in writing its inability to pay
its debts generally as they become due, file a petition to take advantage of any
applicable insolvency or reorganization statute, make an assignment for the
benefit of its creditors, or voluntarily suspend payment of its obligations; or
(g) the Master Servicer shall have received notice of the commencement of
foreclosure or similar proceedings with respect to the related Mortgaged
Property (each event described in clauses (a) through (g) above, a "Servicing
Transfer Event").
If a Servicing Transfer Event occurs with respect to any Mortgage Loan, the
Master Servicer is in general required to transfer its servicing
responsibilities with respect thereto to the Special Servicer. Notwithstanding
such transfer, the Master Servicer will continue to receive payments on such
Mortgage Loan (including amounts collected by the Special Servicer), to make
certain calculations with respect to such Mortgage Loan, and to make remittances
(including, if necessary, P&I Advances) and prepare certain reports to the
Trustee with respect to such Mortgage Loan. If title to the related Mortgaged
Property is acquired by the Trust Fund (upon acquisition, an "REO Property"),
whether through foreclosure, deed in lieu of foreclosure or otherwise, the
Special Servicer will continue to be responsible for the operation and
management thereof. Mortgage Loans serviced by the Special Servicer are referred
to herein as "Specially Serviced Mortgage Loans" and, together with any REO
Properties, constitute "Specially Serviced Trust Fund Assets." The Master
Servicer will have no responsibility for the Special Servicer's performance of
its duties under the Pooling and Servicing Agreement.
A Mortgage Loan will cease to be a Specially Serviced Mortgage Loan (and
will become a "Corrected Mortgage Loan" as to which the Master Servicer will
re-assume servicing responsibilities):
(w) with respect to the circumstances described in clause (a) of the
second preceding paragraph, when the related borrower has made three
consecutive full and timely Monthly Payments under the terms of such
Mortgage Loan (as such terms may be changed or modified in connection with a
bankruptcy or similar proceeding involving the related borrower or by reason
of a modification, waiver or amendment granted or agreed to by the Special
Servicer);
(x) with respect to any of the circumstances described in clauses (b),
(d), (e) and (f) of the second preceding paragraph, when such circumstances
cease to exist in the good faith, reasonable judgment of the Special
Servicer, but, with respect to any bankruptcy or insolvency proceedings
described in clauses (d), (e) and (f), no later than the entry of an order
or decree dismissing such proceeding;
(y) with respect to the circumstances described in clause (c) of the
second preceding paragraph, when such default is cured; and
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(z) with respect to the circumstances described in clause (g) of the
second preceding paragraph, when such proceedings are terminated;
so long as at that time no other circumstance identified in such clauses (a)
through (g) then exists.
SERVICING AND OTHER COMPENSATION AND PAYMENT OF EXPENSES
The principal compensation to be paid to the Master Servicer in respect of
its servicing activities will be the Master Servicing Fee. The "Master Servicing
Fee" will be payable monthly on a loan-by-loan basis from amounts received in
respect of interest on each Mortgage Loan, will be calculated on the basis of a
360-day year consisting of twelve 30-day months, will accrue at the related
Master Servicing Fee Rate and will be computed on the basis of the same
principal amount respecting which any related interest payment due on the
Mortgage Loan is computed. The "Master Servicing Fee Rate" will be a per annum
rate ranging from 0.0090% to 0.1700%. As of the Cut-off Date the weighted
average Master Servicing Fee Rate is 0.0983% per annum.
If a borrower voluntarily prepays a Mortgage Loan on a date that is prior to
its Due Date in any Collection Period, the amount of interest (net of related
Master Servicing Fees, Additional Servicing Fees (as defined herein) and, if
applicable, Additional Interest, that accrues on the Mortgage Loan during such
Collection Period will be less (such shortfall, a "Prepayment Interest
Shortfall") than the amount of interest (net of related Master Servicing Fees,
the Additional Servicing Fees and, if applicable, Additional Interest, and
without regard to any Prepayment Premium or Yield Maintenance Charge actually
collected) that would have accrued on the Mortgage Loan through its Due Date. If
such a principal prepayment occurs during any Collection Period after the Due
Date for such Mortgage Loan in such Collection Period, the amount of interest
(net of related Master Servicing Fees, Additional Servicing Fees and, if
applicable, Additional Interest) that accrues and is collected on the Mortgage
Loans during such Collection Period will exceed (such excess, a "Prepayment
Interest Excess") the amount of interest (net of related Master Servicing Fees,
Additional Servicing Fees, and, if applicable, Additional Interest and without
regard to any Prepayment Premium or Yield Maintenance Charge actually collected)
that would have been collected on the Mortgage Loan during such Collection
Period if the borrower had not prepaid. Any Prepayment Interest Excesses
collected will be paid to the Master Servicer as additional servicing
compensation. However, with respect to each Distribution Date, the Master
Servicer will be required to deposit into the Certificate Account (such deposit,
a "Compensating Interest Payment"), without any right of reimbursement therefor,
an amount equal to the lesser of (i) its servicing compensation for the related
Collection Period, including any Prepayment Interest Excesses received during
such Collection Period, and (ii) the aggregate of any Prepayment Interest
Shortfalls experienced during the related Collection Period. Compensating
Interest Payments will not cover shortfalls in Mortgage Loan interest accruals
that result from any liquidation of a defaulted Mortgage Loan, or of any REO
Property acquired in respect thereof, that occurs during a Collection Period
prior to the related Due Date therein.
The principal compensation to be paid to the Special Servicer in respect of
its special servicing activities will be the Special Servicing Fee (together
with the Master Servicing Fee and the Additional Servicing Fee, the "Servicing
Fees") and, under the circumstances described herein, Principal Recovery Fees.
The "Special Servicing Fee" will be calculated on the basis of a 360-day year
consisting of twelve 30-day months, will accrue at a rate (the "Special
Servicing Fee Rate") equal to 0.25% per annum and will be computed on the basis
of the same principal amount respecting which any related interest payment on
the related Specially Serviced Mortgage Loan is computed. However, earned
Special Servicing Fees will be payable out of general collections on the
Mortgage Loans then on deposit in the Certificate Account. The Special Servicing
Fee with respect to any Specially Serviced Mortgage Loan will cease to accrue if
such loan is liquidated or becomes a Corrected Mortgage Loan. The Special
Servicer will be entitled to a "Principal Recovery Fee" with respect to each
Specially Serviced Trust Fund Asset and Corrected Mortgage Loan, which Principal
Recovery Fee generally will be in an amount equal to 0.25% of all
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amounts received in respect thereof and allocable as a recovery of principal.
However, no Principal Recovery Fee will be payable in connection with, or out of
Liquidation Proceeds (as defined in the Prospectus) resulting from, the purchase
of any Specially Serviced Trust Fund Asset or Corrected Mortgage Loan (i) by a
Mortgage Loan Seller (as described herein under "Description of the Mortgage
Pool-- Assignment of the Mortgage Loans; Repurchases" and "--Representations and
Warranties; Repurchases,") (ii) by the Master Servicer, the Special Servicer,
the Depositor, Lehman Brothers Inc. or the Majority Subordinate
Certificateholder as described herein under "Description of the Certificates--
Termination" or (iii) in certain other limited circumstances.
The Special Servicer, in addition to its duties with respect to the
Specially Serviced Mortgage Loans, will be responsible for (i) conducting (or
retaining a third party to conduct) inspections of each Mortgaged Property and
(ii) collecting and making certain calculations based on annual and quarterly
operating statements and rent rolls with respect to each Mortgaged Property. The
Special Servicer will be entitled to a monthly fee (the "Additional Servicing
Fee") for performing the duties set forth in clauses (i) and (ii) above payable
monthly on a loan-by-loan basis from amounts received in respect of interest on
each Mortgage Loan, which monthly fee will be calculated on the basis of a
360-day year consisting of twelve 30-day months, will accrue at a per annum rate
of 0.005% (the "Additional Servicing Fee Rate") and will be computed on the
basis of the same principal amount respecting which any related interest payment
due on the related Mortgage Loan is computed. The Special Servicer will be
entitled to any loan service charges, statement charges or other charges earned
by it.
As additional servicing compensation, the Master Servicer or the Special
Servicer will be entitled to retain all assumption and modification fees, late
charges, penalty interest and Prepayment Interest Excesses collected from
borrowers on Mortgage Loans. In addition, each of the Master Servicer and the
Special Servicer is authorized to invest or direct the investment of funds held
in those accounts maintained by it that relate to the Mortgage Loans or REO
Properties, as the case may be, in certain short-term United States government
securities and other permitted investment grade obligations, and the Master
Servicer and the Special Servicer each will be entitled to retain any interest
or other income earned on such funds held in those accounts maintained by it,
but shall be required to cover any losses on investments of funds held in those
accounts maintained by it, from its own funds without any right to
reimbursement.
Each of the Master Servicer and Special Servicer will, in general, be
required to pay all ordinary expenses incurred by it in connection with its
servicing activities under the Pooling and Servicing Agreement, including the
fees of any sub-servicers retained by it, and will not be entitled to
reimbursement therefor except as expressly provided in the Pooling and Servicing
Agreement. However, each of the Master Servicer and Special Servicer will be
permitted to pay certain of such expenses (including certain expenses incurred
as a result of a Mortgage Loan default) directly out of the Certificate Account
and at times without regard to the relationship between the expense and the
funds from which it is being paid. See "Description of the
Certificates--Distributions" herein and "Description of the Pooling Agreements--
Certificate Account" and "--Servicing Compensation and Payment of Expenses" in
the Prospectus.
As and to the extent described herein under "Description of the
Certificates--P&I Advances," the Master Servicer, the Special Servicer and the
Trustee will be each entitled to receive interest, at the Reimbursement Rate, on
any reimbursable servicing expenses incurred by it. Such interest will compound
annually and will be paid, contemporaneously with the reimbursement of the
related servicing expense, from general collections on the Mortgage Loans then
on deposit in the Certificate Account.
MODIFICATIONS, WAIVERS AND AMENDMENTS
The Pooling and Servicing Agreement will 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 described under "--General" above, that
it is appropriate to do so and (b) except as described in the following
paragraph,
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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.
Notwithstanding clause (b) of the preceding paragraph, the Special Servicer
may (i) reduce the amounts owing under any Specially Serviced Mortgage Loan by
forgiving principal, accrued interest and/or any Prepayment Premium or Yield
Maintenance Charge, (ii) reduce the amount of the Monthly Payment on any
Specially Serviced Mortgage Loan, including by way of a reduction in the related
Mortgage Rate, (iii) forbear in the enforcement of any right granted under any
Mortgage Note or Mortgage relating to a Specially Serviced Mortgage Loan, (iv)
extend the maturity date of any Mortgage Loan, and/or (v) accept a principal
prepayment during any Lockout Period; provided that (x) the related borrower is
in default with respect to the Specially Serviced Mortgage Loan or, in the
judgment of the Special Servicer, such default is reasonably foreseeable, (y) in
the sole, good faith judgment of the Special Servicer, such modification, waiver
or amendment would increase the recovery to Certificateholders on a net present
value basis documented to the Trustee and (z) such modification, waiver or
amendment does not result in a tax being imposed on the Trust Fund or cause any
REMIC created pursuant to the Pooling and Servicing Agreement to fail to qualify
as a REMIC at any time the Certificates are outstanding. In no event, however,
will the Special Servicer be permitted to (i) extend the maturity date of a
Mortgage Loan beyond a date that is two years prior to the Rated Final
Distribution Date, (ii) extend the maturity date of any Mortgage Loan which has
a Mortgage Rate below the then prevailing interest rate for comparable loans, as
determined by the Special Servicer, unless such Mortgage Loan is a Balloon Loan
that has failed to make the Balloon Payment at its scheduled maturity and such
Balloon Loan is not a Specially Serviced Mortgage Loan (other than by reason of
failure to make the Balloon Payment) and has not been delinquent in the
preceding 12 months (other than with respect to the Balloon Payment), in which
case the Special Servicer may make up to three one-year extensions at the
existing Mortgage Rate for such Mortgage Loan (such limitation of extensions
made at a below market rate shall not limit the ability of the Special Servicer
to extend the maturity date of any Mortgage Loan at an interest rate at or in
excess of the prevailing rate for comparable loans at the time of such
modification), (iii) if the Mortgage Loan is secured by a ground lease, extend
the maturity date of such Mortgage Loan beyond a date which is 10 years prior to
the expiration of the term of such ground lease, (iv) reduce the Mortgage Rate
to a rate below the then prevailing interest rate for comparable loans, as
determined by the Special Servicer or (v) defer interest due on any Mortgage
Loan in excess of 10% of the Stated Principal Balance of such Mortgage Loan or
defer the collection of interest on any Mortgage Loan without accruing interest
on such deferred interest at a rate at least equal to the Mortgage Rate of such
Mortgage Loan.
The Special Servicer will be required to notify the Trustee and the Master
Servicer of any modification, waiver or amendment of any term of any Mortgage
Loan, and to deliver to the Trustee or the related Custodian, for deposit in the
related Mortgage File, an original counterpart of the agreement related to such
modification, waiver or amendment, promptly (and in any event within 10 business
days) following the execution thereof. Copies of each agreement whereby any such
modification, waiver or amendment of any term of any Mortgage Loan is effected
are required to be available for review during normal business hours at the
offices of the Special Servicer. See "Description of the Certificates--Reports
to Certificateholders; Available Information" herein.
For any Mortgage Loan other than a Specially Serviced Mortgaged Loan and
subject to the rights of the Special Servicer, the Master Servicer shall be
responsible for any request by a borrower for the consent
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to modify, waive or amend any term with respect to (i) approving certain leasing
activity and (ii) approving certain substitute property managers.
THE CONTROLLING CLASS REPRESENTATIVE
The Controlling Class Representative will be entitled to advise the Special
Servicer with respect to the following actions of the Special Servicer, and the
Special Servicer will not be permitted to take any of the following actions as
to which the Controlling Class Representative has objected in writing within ten
business days of being notified thereof (provided that if such written objection
has not been received by the Special Servicer within such ten business day
period, then the Controlling Class Representative's approval will be deemed to
have been given):
(i) any foreclosure upon or comparable conversion (which may include
acquisitions of an REO Property) of the ownership of properties securing
such of the Specially Serviced Mortgage Loans as come into and continue in
default;
(ii) any modification of a monetary term of a Mortgage Loan other than a
modification consisting of the extension of the maturity date of a Mortgage
Loan for one year or less;
(iii) any proposed sale of a defaulted Mortgage Loan or REO Property
(other than in connection with the termination of the Trust Fund as
described under "Description of the Certificates-- Termination" herein);
(iv) any determination to bring an REO Property into compliance with
applicable environmental laws;
(v) any acceptance of substitute or additional collateral for a Mortgage
Loan;
(vi) any waiver of a "due-on-sale" or "due-on-encumbrance" clause; and
(vii) any acceptance of an assumption agreement releasing a borrower from
liability under a Mortgage Loan.
In addition, the Controlling Class Representative may direct the Special
Servicer to take, or to refrain from taking, such other actions as the
Controlling Class Representative may deem advisable or as to which provision is
otherwise made in the Pooling and Servicing Agreement; provided that no such
direction and no objection contemplated by the prior paragraph may require or
cause the Special Servicer to violate any provision of the Pooling and Servicing
Agreement, including the Special Servicer's obligation to act in accordance with
the servicing standards described under "--General" above, or expose the Master
Servicer, the Special Servicer, the Trust Fund or the Trustee to liability, or
materially expand the scope of the Special Servicer's responsibilities under the
Pooling and Servicing Agreement or cause the Special Servicer to act or fail to
act in a manner which, in the reasonable judgment of the Special Servicer, is
not in the best interests of the Certificateholders.
LIMITATION ON LIABILITY OF CONTROLLING CLASS REPRESENTATIVE
The Controlling Class Representative will have no liability to the
Certificateholders for any action taken, or for refraining from the taking of
any action, in good faith pursuant to the Pooling and Servicing Agreement, or
for errors in judgment; provided, however, that the Controlling Class
Representative will not be protected against any liability which would otherwise
be imposed by reason of willful misfeasance, bad faith or negligence in the
performance of duties or by reason of reckless disregard of obligations or
duties. By its acceptance of a Certificate, each Certificateholder confirms its
understanding that the Controlling Class Representative may take actions that
favor the interests of one or more Classes of the Certificates over other
Classes of the Certificates, and that the Controlling Class Representative may
have
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special relationships and interests that conflict with those of holders of some
Classes of the Certificates; and, absent willful misfeasance, bad faith or
negligence on the part of the Controlling Class Representative, each
Certificateholder agrees to take no action against the Controlling Class
Representative or any of its officers, directors, employees, principals or
agents as a result of such a special relationship or conflict.
REO PROPERTIES; SALE OF MORTGAGE LOANS
If title to any Mortgaged Property is acquired by the Trustee on behalf of
the Certificateholders pursuant to foreclosure proceedings instituted by the
Special Servicer or otherwise, the Special Servicer, on behalf of such holders,
will be required to sell the Mortgaged Property by the end of the third calendar
year following the year of acquisition, unless (i) the Internal Revenue Service
grants an extension of time to sell such property (an "REO Extension") or (ii)
it obtains an opinion of counsel generally to the effect that the holding of the
property for more than three years after the end of the calendar year in which
it was acquired will not result in the imposition of a tax on the Trust Fund or
cause any REMIC created pursuant to the Pooling and Servicing Agreement to fail
to qualify as a REMIC under the Code. Subject to the foregoing, the Special
Servicer will generally be required to solicit bids for any Mortgaged Property
so acquired in such a manner as will be reasonably likely to realize a fair
price for such property. The Special Servicer may retain an independent
contractor to operate and manage any REO Property; however, the retention of an
independent contractor will not relieve the Special Servicer of its obligations
with respect to such REO Property.
In general, the Special Servicer or an independent contractor employed by
the Special Servicer at the expense of the Trust Fund will be obligated to
operate and manage any Mortgaged Property acquired as REO Property in a manner
that (i) maintains its status as "foreclosure property under the REMIC
Provisions and (ii) would, to the extent commercially feasible with the forgoing
clause (i), maximize the Trust Fund's net after-tax proceeds from such property.
After the Special Servicer reviews the operation of such property and consults
with the Trustee to determine the Trust Fund's federal income tax reporting
position with respect to the income it is anticipated that the Trust Fund would
derive from such property, the Special Servicer could determine (particularly in
the case of an REO Property that is a hospitality or residential health care
facility) that it would not be commercially feasible to manage and operate such
property in a manner that would avoid the imposition of a tax on "net income
from foreclosure property," within the meaning of Section 857(b)(4)(B) of the
Code or a tax on "prohibited transactions" under Section 860F of the Code
(either such tax referred to herein as an "REO Tax"). To the extent that income
the Trust Fund receives from an REO Property is subject to a tax on (i) "net
income from foreclosure property" such income would be subject to federal tax at
the highest marginal corporate tax rate (currently 35%) or (ii) "prohibited
transactions," such income would be subject to federal tax at a 100% rate. The
determination as to whether income from an REO Property would be subject to an
REO Tax will depend on the specific facts and circumstances relating to the
management and operation of each REO Property. Generally, income from an REO
Property that is directly operated by the Special Servicer would be apportioned
and classified as "service" or "non-service" income. The "service" portion of
such income could be subject to federal tax either at the highest marginal
corporate tax rate or at the 100% rate on "prohibited transactions," and the
"non-service" portion of such income could be subject to federal tax at the
highest marginal corporate tax rate or, although it appears unlikely, at the
100% rate applicable to "prohibited transactions." Any REO Tax imposed on the
Trust Fund's income from an REO Property would reduce the amount available for
distribution to Certificateholders. Certificateholders are advised to consult
their tax advisors regarding the possible imposition of REO Taxes in connection
with the operation of commercial REO Properties by REMICs. See "Material Federal
Income Tax Consequences" herein and "Material Federal Income Tax
Consequences--REMICs" in the Prospectus.
In certain circumstances the Special Servicer may offer to sell any
defaulted Mortgage Loan if the Special Servicer determines, consistent with the
Servicing Standard, that such sale would be in the best economic interest of the
Trust Fund. In connection with such a sale, the Special Servicer is not
obligated to
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accept the highest bid if the Special Servicer determines, in accordance with
the Servicing Standard, that rejection of the highest bid would be in the best
interest of the Certificateholders.
INSPECTIONS; COLLECTION OF OPERATING INFORMATION
The Special Servicer will be required to perform or cause to be performed a
physical inspection of a Mortgaged Property as soon as practicable after the
related Mortgage Loan becomes a Specially Serviced Mortgage Loan. In addition,
the Master Servicer will be required to inspect or cause to be inspected each
Mortgaged Property at least once per calendar year if, in a given calendar year,
it has not already done so. The Special Servicer will be required to prepare a
written report of each such inspection performed by it that describes the
condition of the Mortgaged Property and that specifies the existence with
respect thereto of any sale, transfer or abandonment or any material change in
its condition or value.
The Special Servicer is also required to use reasonable efforts to collect
from the related borrower and review the quarterly and annual operating
statements of each Mortgaged Property and to cause annual operating statements
to be prepared for each REO Property. Each of the Mortgages requires the related
borrower to deliver an annual property operating statement. However, there can
be no assurance that any operating statements required to be delivered will in
fact be delivered, nor is the Special Servicer likely to have any practical
means of compelling such delivery in the case of an otherwise performing
Mortgage Loan.
Copies of the inspection reports and operating statements referred to above
are required to be available for review by Certificateholders during normal
business hours at the offices of the Special Servicer. See "Description of the
Certificates--Reports to Certificateholders; Available Information" herein.
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DESCRIPTION OF THE CERTIFICATES
GENERAL
The First Union-Lehman Brothers-Bank of America Commercial Mortgage Trust,
Commercial Mortgage Pass-Through Certificates, Series 1998-C2 (the
"Certificates") will be issued pursuant to a Pooling and Servicing Agreement, to
be dated as of May 1, 1998, among the Depositor, the Master Servicer, the
Special Servicer, and the Trustee (the "Pooling and Servicing Agreement"). The
Certificates will represent in the aggregate the entire beneficial ownership
interest in a trust fund (the "Trust Fund") consisting primarily of: (i) the
Mortgage Loans and all payments and other collections in respect of the Mortgage
Loans received or applicable to periods after the Cut-off Date (exclusive of
payments of principal and interest due, and principal prepayments received, on
or before the Cut-off Date); (ii) any REO Property acquired on behalf of the
Trust Fund; (iii) such funds or assets as from time to time are deposited in the
Certificate Account (see "Description of the Pooling Agreements--Certificate
Account" in the Prospectus); and (iv) certain rights of the Depositor under the
Mortgage Loan Purchase Agreements relating to Mortgage Loan document delivery
requirements and the representations and warranties of the Mortgage Loan Sellers
regarding the Mortgage Loans.
The Certificates will consist of the following classes (each, a "Class") to
be designated as: (i) the Class A-1 Certificates and the Class A-2 Certificates
(together, the "Class A Certificates"); (ii) the Class B Certificates, the Class
C Certificates, the Class D Certificates, the Class E Certificates, the Class F
Certificates, the Class G Certificates, the Class H Certificates, the Class J
Certificates, the Class K Certificates, Class L Certificates, the Class M
Certificates and Class N Certificates (collectively with the Class A
Certificates, the "Sequential Pay Certificates"); (iii) the Class IO
Certificates (collectively with the Sequential Pay Certificates, the "REMIC
Regular Certificates"); and (iv) one or more classes of residual certificates
(collectively, the "REMIC Residual Certificates").
Only the Class A-1, Class A-2, Class IO, Class B, Class C, Class D and Class
E Certificates (collectively, the "Offered Certificates") are offered hereby.
The Class F, Class G, Class H, Class J, Class K, Class L, Class M, Class N and
the REMIC Residual Certificates (collectively, the "Private Certificates") have
not been registered under the Securities Act, and are not offered hereby.
Accordingly, information herein regarding the terms of the Private Certificates
is provided solely because of its potential relevance to a prospective purchaser
of an Offered Certificate.
REGISTRATION AND DENOMINATIONS
The Offered Certificates will be issued in book-entry format through the
facilities of The Depository Trust Company ("DTC"). Each Class of Offered
Certificates will be issued in denominations of not less than $10,000 actual
principal amount (or $100,000 notional amount with respect to the Class IO
Certificates), and in integral multiples of $1 in excess thereof.
Each Class of Offered Certificates will initially be represented by one or
more global Certificates registered in the name of the nominee of DTC. The
Depositor has been informed by DTC that DTC's nominee will be Cede & Co. No
beneficial owner of an Offered Certificate (each, a "Certificate Owner") will be
entitled to receive a fully registered, certificated form of such Certificate (a
"Definitive Offered Certificate"), except under the limited circumstances
described in the Prospectus under "Description of the Certificates--Book-Entry
Registration and Definitive Certificates." Unless and until Definitive Offered
Certificates are issued in respect of a Class of Offered Certificates,
beneficial ownership interests in such Class will be recorded and transferred on
the book-entry records of DTC and its participating organizations (the
"Participants"), and all references to actions by holders of a Class of Offered
Certificates will refer to actions taken by DTC upon instructions received from
the related Certificate Owners through the Participants in accordance with DTC
procedures, and all references herein to payments, notices, reports and
statements to the holders of a Class of Offered Certificates will refer to
payments, notices, reports and statements to DTC or Cede & Co., as the
registered holder thereof, for distribution to
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the related Certificate Owners through the Participants in accordance with DTC
procedures. The form of such payments and transfers may result in certain delays
in receipt of payments by an investor and may restrict an investor's ability to
pledge its securities. None of the Depositor, the Master Servicer, the Special
Servicer, the Trustee or any of their respective affiliates will have any
liability for any actions taken by DTC or its nominee, including, without
limitation, actions for any aspect of the records relating to or payments made
on account of beneficial ownership interests in Offered Certificates held by
Cede & Co., as nominee for DTC, or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests. See "Description of the
Certificates--Book-Entry Registration and Definitive Certificates" and "Risk
Factors--Book-Entry Registration" in the Prospectus.
CERTIFICATE BALANCES AND NOTIONAL AMOUNT
Upon initial issuance, and in each case subject to a permitted variance of
plus or minus 5%, the respective Classes of Sequential Pay Certificates will
have the Certificate Balances representing the approximate percentage of the
Initial Pool Balance as set forth in the following table:
<TABLE>
<CAPTION>
INITIAL PERCENT OF
CLASS OF CERTIFICATES CERTIFICATE BALANCE INITIAL POOL BALANCE
- ---------------------------------------------------------------- --------------------- ---------------------
<S> <C> <C>
Class A-1 Certificates..........................................
Class A-2 Certificates..........................................
Class B Certificates............................................
Class C Certificates............................................
Class D Certificates............................................
Class E Certificates............................................
Private Certificates (other than the REMIC Residual
Certificates).................................................
</TABLE>
The "Certificate Balance" of any Class of Sequential Pay Certificates
outstanding at any time represents the maximum amount that the holders thereof
are entitled to receive as distributions allocable to principal from the cash
flow on the Mortgage Loans and the other assets in the Trust Fund. The
Certificate Balance of each Class of Sequential Pay Certificates will be reduced
on each Distribution Date by any distributions of principal actually made on
such Class of Certificates on such Distribution Date, and further by any
Realized Losses and Additional Trust Fund Expenses actually allocated to such
Class of Certificates on such Distribution Date.
The Class IO Certificates will not have a Certificate Balance, but will
represent the right to receive distributions of interest in an amount equal to
the aggregate interest accrued on the notional amount of each of the Class IO
Components, as described herein. The Class IO Certificates will have separate
components (each a "Class IO Component"), each corresponding to a different
Class of Sequential Pay Certificates. Each such Class IO Component will have the
same letter and/or numerical designation as a Class of Sequential Pay
Certificates. The notional amount of each such Class IO Component will equal the
Certificate Balance of the corresponding Class of Sequential Pay Certificates
outstanding from time to time. On the Closing Date, the aggregate of the
notional amounts of all the Class IO Components will equal approximately
$3,475,264,083, which amount will equal the Initial Pool Balance. References
herein to the "notional amount" of the Class IO Certificates shall mean the
aggregate of the notional amounts of the Class IO Components.
The REMIC Residual Certificates will not have Certificate Balances or
notional amounts, but will represent the right to receive on each Distribution
Date any portion of the Available Distribution Amount (as defined below) for
such date that remains after the required distributions have been made on all
the REMIC Regular Certificates.
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PASS-THROUGH RATES
The Pass-Through Rate applicable to each Class of Offered Certificates
(other than the Class IO Certificates) for each Distribution Date is fixed at
the respective rate per annum set forth with respect to such Class in the table
at the beginning of the Summary. The Pass-Through Rate applicable to each Class
of the Private Certificates (other than the REMIC Residual Certificates) for
each Distribution Date is the lesser of (a) the respective rate per annum set
forth in respect of such Class in the table at the beginning of the Summary and
(b) the Weighted Average Net Mortgage Rate for such Distribution Date. The Pass-
Through Rate applicable to each Class IO Component for any Distribution Date
will be equal to the Weighted Average Net Mortgage Rate for such Distribution
Date minus the Pass-Through Rate then applicable to the corresponding Class of
Sequential Pay Certificates. The REMIC Residual Certificates will not bear
interest.
The "Weighted Average Net Mortgage Rate" for each Distribution Date is the
weighted average of the Net Mortgage Rates for the Mortgage Loans as of the
commencement of the related Collection Period, weighted on the basis of their
respective Stated Principal Balances outstanding immediately prior to such
Distribution Date. The "Net Mortgage Rate" for each Mortgage Loan will generally
equal (x) the Mortgage Rate in effect for such Mortgage Loan as of the Cut-off
Date, minus (y) the applicable Administrative Cost Rate for such Mortgage Loan.
In addition, if any Mortgage Loan does not accrue interest on the basis of a
360-day year consisting of twelve 30-day months (which is the basis on which
interest accrues in respect of the REMIC Regular Certificates), then, for
purposes of calculating the Weighted Average Net Mortgage Rate, the Mortgage
Rate of such Mortgage Loan for any Collection Period will be deemed to be the
annualized rate at which interest would have to accrue in respect of such loan
on a 30/360 basis in order to derive the aggregate amount of interest (other
than Additional Interest and default interest) actually accrued in respect of
such loan during such period; provided, however, that with respect to each
Interest Reserve Loan (as defined herein), (i) the Mortgage Rate for the
Collection Period preceding the Due Dates in (a) January and February in each
year that is not a leap year or (b) February only in each year that is a leap
year will be determined net of the Interest Reserve Amounts and (ii) the
Mortgage Rate for the Collection Period preceding the Due Date in March in each
year will be determined after taking into account the addition of the applicable
Interest Reserve Amounts. The "Stated Principal Balance" of each Mortgage Loan
outstanding at any time will generally be an amount equal to the Cut-off Date
Balance thereof, reduced on each Distribution Date (to not less than zero) by
(i) any payments or other collections (or advances in lieu thereof) of principal
of such Mortgage Loan that are due or received, as the case may be, during the
related Collection Period and are distributed on the Certificates on such
Distribution Date and (ii) the principal portion of any Realized Loss incurred
in respect of such Mortgage Loan during the related Collection Period.
Notwithstanding the foregoing, if any Mortgage Loan is paid in full, liquidated
or otherwise removed from the Trust Fund, commencing as of the first
Distribution Date following the Collection Period during which such event
occurred, the Stated Principal Balance of such Mortgage Loan will be zero.
The "Collection Period" for each Distribution Date will be the period that
begins immediately following the Determination Date in the month preceding the
month in which such Distribution Date occurs (or, in the case of the initial
Distribution Date, immediately following the Cut-off Date) and ends on and
includes the Determination Date in the same month as such Distribution Date. The
"Determination Date" will be the 10th day of each month (or, if not a business
day, the next preceding business day).
DISTRIBUTIONS
GENERAL. Distributions on the Certificates will be made by the Trustee, to
the extent of available funds, on the 18th day of each month or, if any such
18th day is not a business day, then on the next succeeding business day with
the same force and effect and no additional interest shall accrue, commencing
June 18, 1998 (each, a "Distribution Date"). Except as described below, all such
distributions will be made to the persons in whose names the Certificates are
registered (the "Certificateholders") at the close
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of business on the last business day of the month preceding the month in which
the related Distribution Date occurs and shall be made by wire transfer of
immediately available funds, if such Certificateholder shall have provided
wiring instructions no less than five business days prior to such record date,
or otherwise by check mailed to the address of such Certificateholder as it
appears in the Certificate register. The final distribution on any Certificate
(determined without regard to any possible future reimbursement of any Realized
Loss or Additional Trust Fund Expense previously allocated to such Certificate)
will be made only upon presentation and surrender of such Certificate at the
location that will be specified in a notice of the pendency of such final
distribution. All distributions made with respect to a Class of Certificates
will be allocated pro rata among the outstanding Certificates of such Class
based on their respective percentage interests in such Class.
THE AVAILABLE DISTRIBUTION AMOUNT. The aggregate amount available for
distributions of interest and principal to Certificateholders on each
Distribution Date (the "Available Distribution Amount") will, in general, equal
the sum of the following amounts:
(a) the total amount of all cash received on or in respect of the
Mortgage Loans and any REO Properties by the Master Servicer as of the close
of business on the related Determination Date and not previously distributed
with respect to the Certificates, exclusive of any portion thereof that
represents one or more of the following:
(i) any Monthly Payments collected but due on a Due Date after the
related Collection Period;
(ii) any Prepayment Premiums and Yield Maintenance Charges;
(iii) all amounts in the Certificate Account that are payable or
reimbursable to any person other than the Certificateholders, including
any Servicing Fees and Trustee Fees;
(iv) any Additional Interest on the ARD Loans; and
(v) with respect to any Distribution Date occurring in each February,
and in any January occurring in a year that is not a leap year, the
Interest Reserve Amounts with respect to the Interest Reserve Loans to be
deposited in the Interest Reserve Account and held for future
distribution;
(b) all P&I Advances made by the Master Servicer with respect to such
Distribution Date;
(c) any Compensating Interest Payment made by the Master Servicer to
cover the aggregate of any Prepayment Interest Shortfalls experienced during
the related Collection Period; and
(d) for each Distribution Date occurring in March, the aggregate of the
Interest Reserve Amounts in respect of each Interest Reserve Loan.
See "Servicing of the Mortgage Loans--Servicing and Other Compensation and
Payment of Expenses" herein, "--P&I Advances" below and "Description of the
Pooling Agreements--Certificate Account" in the Prospectus.
Any Prepayment Premiums and Yield Maintenance Charges actually collected
will be distributed separately from the Available Distribution Amount. See
"--Distributions--Allocation of Prepayment Premiums and Yield Maintenance
Charges" herein.
INTEREST RESERVE ACCOUNT. The Trustee will establish and maintain an
"Interest Reserve Account" in the name of the Trustee for the benefit of the
holders of the Certificates. With respect to each Distribution Date ocurring in
February and each Distribution Date occurring in any January which occurs in a
year that is not a leap year, there will be deposited, in respect of each
Mortgage Loan bearing interest computed on an actual/360 basis and having a
Mortgage Rate (less the Administrative Cost Rate) less than % per annum (the
"Interest Reserve Loans"), an amount equal to one day's interest at the related
Mortgage
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Rate (less the Administrative Cost Rate) on its Stated Principal Balance, as of
the Due Date in the month preceding the month in which such Distribution Date
occurs, to the extent a Monthly Payment or P&I Advance is made in respect
thereof (all amounts so deposited in any consecutive January (if applicable) and
February in respect of each Interest Reserve Loan, the "Interest Reserve
Amount"). With respect to each Distribution Date occurring in March, an amount
is required to be withdrawn from the Interest Reserve Account equal to the
Interest Reserve Amounts from the preceding January (if applicable) and
February, if any, and deposited into the Certificate Account.
APPLICATION OF THE AVAILABLE DISTRIBUTION AMOUNT. On each Distribution
Date, the Trustee will (except as otherwise described under "--Termination"
below) apply amounts on deposit in the Certificate Account, to the extent of the
Available Distribution Amount, in the following order of priority:
(1) to distributions of interest to the holders of the Class A-1, Class
A-2 and Class IO Certificates (in each case, so long as any such Class
remains outstanding), PRO RATA, in accordance with the respective amounts of
Distributable Certificate Interest (as defined herein) in respect of such
Classes of Certificates on such Distribution Date, in an amount equal to all
Distributable Certificate Interest in respect of each such Class of
Certificates for such Distribution Date and, to the extent not previously
paid, for all prior Distribution Dates;
(2) to distributions of principal to the holders of the Class A-1
Certificates in an amount (not to exceed the then outstanding Certificate
Balance of the Class A-1 Certificates) equal to the Principal Distribution
Amount (as defined herein) for such Distribution Date;
(3) after the Class A-1 Certificates have been retired, to distributions
of principal to the holders of the Class A-2 Certificates in an amount (not
to exceed the then outstanding Certificate Balance of the Class A-2
Certificates) equal to the Principal Distribution Amount for such
Distribution Date, less any portion thereof distributed in respect of the
Class A-1 Certificates;
(4) to distributions to the holders of the Class A-1 and Class A-2
Certificates, PRO RATA, in accordance with the respective amounts of
Realized Losses and Additional Trust Fund Expenses, if any, previously
allocated to such Classes of Certificates and for which no reimbursement has
previously been received, to reimburse such holders for all such Realized
Losses and Additional Trust Fund Expenses, if any;
(5) to distributions of interest to the holders of the Class B
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(6) after the Class A-1 and Class A-2 Certificates have been retired, to
distributions of principal to the holders of the Class B Certificates in an
amount (not to exceed the then outstanding Certificate Balance of the Class
B Certificates) equal to the Principal Distribution Amount for such
Distribution Date, less any portion thereof distributed in respect of the
Class A-1 and/or Class A-2 Certificates on such Distribution Date;
(7) to distributions to the holders of the Class B Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
(8) to distributions of interest to the holders of the Class C
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(9) after the Class A-1, Class A-2 and Class B Certificates have been
retired, to distributions of principal to the holders of the Class C
Certificates in an amount (not to exceed the then outstanding Certificate
Balance of the Class C Certificates) equal to the Principal Distribution
Amount for such
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Distribution Date, less any portion thereof distributed in respect of the
Class A-1, Class A-2 and/or Class B Certificates on such Distribution Date;
(10) to distributions to the holders of the Class C Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
(11) to distributions of interest to the holders of the Class D
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(12) after the Class A-1, Class A-2, Class B and Class C Certificates
have been retired, to distributions of principal to the holders of the Class
D Certificates in an amount (not to exceed the then outstanding Certificate
Balance of the Class D Certificates) equal to the Principal Distribution
Amount for such Distribution Date, less any portion thereof distributed in
respect of the Class A-1, Class A-2, Class B and/or Class C Certificates on
such Distribution Date;
(13) to distributions to the holders of the Class D Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
(14) to distributions of interest to the holders of the Class E
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(15) after the Class A-1, Class A-2, Class B, Class C and Class D
Certificates have been retired, to distributions of principal to the holders
of the Class E Certificates in an amount (not to exceed the then outstanding
Certificate Balance of the Class E Certificates) equal to the Principal
Distribution Amount for such Distribution Date, less any portion thereof
distributed in respect of the Class A-1, Class A-2, Class B, Class C and/or
Class D Certificates;
(16) to distributions to the holders of the Class E Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
(17) to distributions of interest to the holders of the Class F
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(18) after the Class A-1, Class A-2, Class B, Class C, Class D and Class
E Certificates have been retired, to distributions of principal to the
holders of the Class F Certificates in an amount (not to exceed the then
outstanding Certificate Balance of the Class F Certificates) equal to the
Principal Distribution Amount for such Distribution Date, less any portion
thereof distributed in respect of the Class A-1, Class A-2, Class B, Class
C, Class D and/or Class E Certificates;
(19) to distributions to the holders of the Class F Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
(20) to distributions of interest to the holders of the Class G
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(21) after the Class A-1, Class A-2, Class B, Class C, Class D, Class E
and Class F Certificates have been retired, to distributions of principal to
the holders of the Class G Certificates in an amount (not to exceed the then
outstanding Certificate Balance of the Class G Certificates) equal to the
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Principal Distribution Amount for such Distribution Date, less any portion
thereof distributed in respect of the Class A-1, Class A-2, Class B, Class
C, Class D, Class E and/or Class F Certificates;
(22) to distributions to the holders of the Class G Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
(23) to distributions of interest to the holders of the Class H
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(24) after the Class A-1, Class A-2, Class B, Class C, Class D, Class E,
Class F and Class G Certificates have been retired, to distributions of
principal to the holders of the Class H Certificates in an amount (not to
exceed the then outstanding Certificate Balance of the Class H Certificates)
equal to the Principal Distribution Amount for such Distribution Date, less
any portion thereof distributed in respect of the Class A-1, Class A-2,
Class B, Class C, Class D, Class E, Class F and/or Class G Certificates;
(25) to distributions to the holders of the Class H Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
(26) to distributions of interest to the holders of the Class J
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(27) after the Class A-1, Class A-2, Class B, Class C, Class D, Class E,
Class F, Class G and Class H Certificates have been retired, to
distributions of principal to the holders of the Class J Certificates in an
amount (not to exceed the then outstanding Certificate Balance of the Class
J Certificates) equal to the Principal Distribution Amount for such
Distribution Date, less any portion thereof distributed in respect of the
Class A-1, Class A-2, Class B, Class C, Class D, Class E, Class F, Class G
and/or Class H Certificates;
(28) to distributions to the holders of the Class J Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to such Class of Certificates and for
which no reimbursement has previously been received;
(29) to distributions of interest to the holders of the Class K
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(30) after the Class A-1, Class A-2, Class B, Class C, Class D, Class E,
Class F, Class G, Class H and Class J Certificates have been retired, to
distributions of principal to the holders of the Class K Certificates in an
amount (not to exceed the then outstanding Certificate Balance of the Class
K Certificates) equal to the Principal Distribution Amount for such
Distribution Date, less any portion thereof distributed in respect of the
Class A-1, Class A-2, Class B, Class C, Class D, Class E, Class F, Class G,
Class H and/or Class J Certificates;
(31) to distributions to the holders of the Class K Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to each such Class of Certificates
and for which no reimbursement has previously been received;
(32) to distributions of interest to the holders of the Class L
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
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(33) after the Class A-1, Class A-2, Class B, Class C, Class D, Class E,
Class F, Class G, Class H, Class J and Class K Certificates have been
retired, to distributions of principal to the holders of the Class L
Certificates in an amount (not to exceed the then outstanding Certificate
Balance of the Class L Certificates) equal to the Principal Distribution
Amount for such Distribution Date, less any portion thereof distributed in
respect of the Class A-1, Class A-2, Class B, Class C, Class D, Class E,
Class F, Class G, Class H, Class J and/or Class K Certificates;
(34) to distributions to the holders of the Class L Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to each such Class of Certificates
and for which no reimbursement has previously been received;
(35) to distributions of interest to the holders of the Class M
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(36) after the Class A-1, Class A-2, Class B, Class C, Class D, Class E,
Class F, Class G, Class H, Class J, Class K and Class L Certificates have
been retired, to distributions of principal to the holders of the Class M
Certificates in an amount (not to exceed the then outstanding Certificate
Balance of the Class M Certificates) equal to the Principal Distribution
Amount for such Distribution Date, less any portion thereof distributed in
respect of the Class A-1, Class A-2, Class B, Class C, Class D, Class E,
Class F, Class G, Class H, Class J, Class K and/or Class L Certificates;
(37) to distributions to the holders of the Class M Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to each such Class of Certificates
and for which no reimbursement has previously been received;
(38) to distributions of interest to the holders of the Class N
Certificates in an amount equal to all Distributable Certificate Interest in
respect of such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribution Dates;
(39) after the Class A-1, Class A-2, Class B, Class C, Class D, Class E,
Class F, Class G, Class H, Class J, Class K, Class L and Class M
Certificates have been retired, to distributions of principal to the holders
of the Class N Certificates in an amount (not to exceed the then outstanding
Certificate Balance of the Class N Certificates) equal to the Principal
Distribution Amount for such Distribution Date, less any portion thereof
distributed in respect of the Class A-1, Class A-2, Class B, Class C, Class
D, Class E, Class F, Class G, Class H, Class J, Class K, Class L and/or
Class M Certificates;
(40) to distributions to the holders of the Class N Certificates to
reimburse such holders for all Realized Losses and Additional Trust Fund
Expenses, if any, previously allocated to each such Class of Certificates
and for which no reimbursement has previously been received; and
(41) to distributions to the holders of the REMIC Residual Certificates
in an amount equal to the balance, if any, of the Available Distribution
Amount remaining after the distributions to be made on such Distribution
Date as described in clauses (1) through (40) above;
provided that, on each Distribution Date, if any, after the aggregate of the
Certificate Balances of the Subordinate Certificates has been reduced to zero
prior to retirement of the Class A Certificates as a result of the allocations
of Realized Losses and Additional Trust Fund Expenses, and in any event on the
final Distribution Date in connection with a termination of the Trust Fund (see
"Description of the Certificates--Termination" herein), the payments of
principal to be made as contemplated by clauses (2) and (3) above with respect
to the Class A Certificates, will be so made to the holders of the respective
Classes of such Certificates, up to an amount equal to, and pro rata as between
such Classes in accordance with, the respective then outstanding Certificate
Balances of such Classes of Certificates, and without regard to the Principal
Distribution Amount for such date.
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DISTRIBUTABLE CERTIFICATE INTEREST. The "Distributable Certificate
Interest" in respect of each Class of REMIC Regular Certificates for each
Distribution Date will equal the Accrued Certificate Interest in respect of such
Class of Certificates for such Distribution Date, reduced (to net less than
zero) by such Class's allocable share (calculated as described below) of the
aggregate of any Prepayment Interest Shortfalls resulting from voluntary
principal prepayments made on the Mortgage Loans during the related Collection
Period that are not covered by the Master Servicer's Compensating Interest
Payment for such Distribution Date (the aggregate of such Prepayment Interest
Shortfalls that are not so covered, as to such Distribution Date, the "Net
Aggregate Prepayment Interest Shortfall").
The "Accrued Certificate Interest" in respect of each Class of Sequential
Pay Certificates for each Distribution Date will equal one month's interest at
the Pass-Through Rate applicable to such Class of Certificates for such
Distribution Date accrued on the related Certificate Balance outstanding
immediately prior to such Distribution Date. The "Accrued Certificate Interest"
in respect of the Class IO Certificates for any Distribution Date will equal the
aggregate of one month's interest at the applicable Pass-Through Rate on the
notional amount of each Class IO Component outstanding immediately prior to such
Distribution Date. Accrued Certificate Interest will be calculated on a 30/360
basis.
The portion of the Net Aggregate Prepayment Interest Shortfall for any
Distribution Date that is allocable to each Class of REMIC Regular Certificates
will equal the product of (a) such Net Aggregate Prepayment Interest Shortfall,
multiplied by (b) a fraction, the numerator of which is equal to the Accrued
Certificate Interest in respect of such Class of Certificates for such
Distribution Date, and the denominator of which is equal to the aggregate
Accrued Certificate Interest in respect of all Classes of REMIC Regular
Certificates for such Distribution Date.
PRINCIPAL DISTRIBUTION AMOUNT. The "Principal Distribution Amount" for each
Distribution Date will generally equal the aggregate of the following (without
duplication):
(a) the aggregate of the principal portions of all Scheduled Payments
(other than Balloon Payments) due, and the principal portions of any Assumed
Scheduled Payments due or deemed due, on or in respect of the Mortgage Loans
for their respective Due Dates occurring during the related Collection
Period;
(b) the aggregate of all principal prepayments received on the Mortgage
Loans during the related Collection Period;
(c) with respect to any Mortgage Loan as to which the related stated
maturity date occurred during or prior to the related Collection Period, any
payment of principal made by or on behalf of the related borrower during the
related Collection Period (including any Balloon Payment), net of any
portion of such payment that represents a recovery of the principal portion
of any Scheduled Payment (other than a Balloon Payment) due or the principal
portion of any Assumed Scheduled Payment deemed due, in respect of such
Mortgage Loan on a Due Date during or prior to the related Collection Period
and not previously recovered;
(d) the aggregate of all Liquidation Proceeds, Insurance Proceeds (each
as defined in the Prospectus), condemnation awards and proceeds of Mortgage
Loan repurchases and, to the extent not otherwise included in clause (a),
(b) or (c) above, payments and other amounts that were received on or in
respect of Mortgage Loans during the related Collection Period and that were
identified and applied by the Master Servicer as recoveries of principal, in
each case net of any portion of such amounts that represents a recovery of
the principal portion of any Scheduled Payment (other than a Balloon
Payment) due, or of the principal portion of any Assumed Scheduled Payment
deemed due, in respect of the related Mortgage Loan on a Due Date during or
prior to the related Collection Period and not previously recovered; and
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(e) if such Distribution Date is subsequent to the initial Distribution
Date, the excess, if any, of the Principal Distribution Amount for the
immediately preceding Distribution Date, over the aggregate distributions of
principal made on the Certificates on such immediately preceding
Distribution Date.
The "Scheduled Payment" due on any Mortgage Loan on any related Due Date is
the amount of the Monthly Payment that is or would have been, as the case may
be, due thereon on such date, without regard to any waiver, modification or
amendment of such Mortgage Loan granted or agreed to by the Special Servicer or
otherwise resulting from a bankruptcy or similar proceeding involving the
related borrower, or the application of any Excess Cash Flow with respect to an
ARD Loan and assuming that each prior Scheduled Payment has been made in a
timely manner. The "Assumed Scheduled Payment" is an amount deemed due (i) on
any Balloon Loan that is delinquent in respect of its Balloon Payment beyond the
first Determination Date that follows its stated maturity date and (ii) on an
REO Mortgage Loan. The Assumed Scheduled Payment deemed due on any such Balloon
Loan on its stated maturity date and on each successive related Due Date that it
remains or is deemed to remain outstanding will equal the Scheduled Payment that
would have been due thereon on such date if the related Balloon Payment had not
come due but rather such Mortgage Loan had continued to amortize in accordance
with such loan's amortization schedule, if any, in effect as of the Closing
Date. The Assumed Scheduled Payment deemed due on any REO Mortgage Loan on each
Due Date that the related REO Property remains part of the Trust Fund will equal
the Scheduled Payment that would have been due in respect of such Mortgage Loan
on such Due Date had it remained outstanding (or, if such Mortgage Loan was a
Balloon Mortgage Loan and such Due Date coincides with or follows what had been
its stated maturity date, the Assumed Scheduled Payment that would have been
deemed due in respect of such Mortgage Loan on such Due Date had it remained
outstanding).
Distributions of the Principal Distribution Amount will constitute the only
distributions of principal on the Certificates. Reimbursements of previously
allocated Realized Losses and Additional Trust Fund Expenses will not constitute
distributions of principal for any purpose and will not result in an additional
reduction in the Certificate Balance of the Class of Certificates in respect of
which any such reimbursement is made.
TREATMENT OF REO PROPERTIES. Notwithstanding that any Mortgaged Property
may be acquired as part of the Trust Fund through foreclosure, deed in lieu of
foreclosure or otherwise, the related Mortgage Loan will be treated, for
purposes of determining (i) distributions on the Certificates, (ii) allocations
of Realized Losses and Additional Trust Fund Expenses to the Certificates, and
(iii) the amount of Trustee Fees and Servicing Fees payable under the Pooling
and Servicing Agreement, as having remained outstanding until such REO Property
is liquidated. In connection therewith, operating revenues and other proceeds
derived from such REO Property (net of related operating costs) will be
"applied" by the Master Servicer as principal, interest and other amounts that
would have been "due" on such Mortgage Loan, and the Master Servicer will be
required to make P&I Advances in respect of such Mortgage Loan, in all cases as
if such Mortgage Loan had remained outstanding. References to "Mortgage Loan" or
"Mortgage Loans" in the definitions of "Principal Distribution Amount" and
"Weighted Average Net Mortgage Rate" are intended to include any Mortgage Loan
as to which the related Mortgaged Property has become an REO Property (an "REO
Mortgage Loan").
ALLOCATION OF PREPAYMENT PREMIUMS AND YIELD MAINTENANCE CHARGES. In the
event a borrower is required to pay any Yield Maintenance Charge or any
Prepayment Premium, the amount of such payments actually collected will be
distributed in respect of the Offered Certificates as set forth below. "Yield
Maintenance Charges" are fees paid or payable, as the context requires, as a
result of a prepayment of principal on a Mortgage Loan, which fees have been
calculated (based on Scheduled Payments on such Mortgage Loan) to compensate the
holder of the Mortgage for reinvestment losses based on the value of a discount
rate at or near the time of prepayment. Any other fees paid or payable, as the
context requires, as
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a result of a prepayment of principal on a Mortgage Loan, which are calculated
based upon a specified percentage (which may decline over time) of the amount
prepaid are considered "Prepayment Premiums."
On each Distribution Date, any Prepayment Premium or Yield Maintenance
Charge collected on a Mortgage Loan during the related Collection Period will be
distributed as follows: The holders of each Class of Sequential Pay Certificates
(other than an Excluded Class thereof) then entitled to distributions of
principal on such Distribution Date will be entitled to an amount equal to (a)
the amount of such Prepayment Premium or Yield Maintenance Charge, multiplied by
(b) a fraction (which in no event may be greater than one), the numerator of
which is equal to the excess, if any, of the Pass-Through Rate of such Class of
Sequential Pay Certificates, over the relevant Discount Rate (as defined below),
and the denominator of which is equal to the excess, if any, of the Mortgage
Rate of the prepaid Mortgage Loan, over the relevant Discount Rate, and (c) a
fraction, the numerator of which is equal to the amount of principal
distributable on such Class of Sequential Pay Certificates on such Distribution
Date, and the denominator of which is the Principal Distribution Amount for such
Distribution Date. If there is more than one Class of Sequential Pay
Certificates (other than an Excluded Class thereof) entitled to distributions of
principal on any particular Distribution Date on which a Prepayment Premium or
Yield Maintenance Charge is distributable, the aggregate amount of such
Prepayment Premium or Yield Maintenance Charge will be allocated among all such
Classes up to, and on a PRO RATA basis in accordance with their respective
entitlements thereto in accordance with, the foregoing sentence. The portion, if
any, of the Prepayment Premium or Yield Maintenance Charge remaining after any
such payments to the holders of the Sequential Pay Certificates will be
distributed to the holders of the Class IO Certificates. For purposes of the
foregoing, an "Excluded Class" of Sequential Pay Certificates is any Class
thereof other than the Class A-1, Class A-2, Class B, Class C, Class D, Class E,
Class F and Class G Certificates.
The "Discount Rate" applicable to any Class of Offered Certificates will be
equal to the yield (when compounded monthly) on the U.S. Treasury issue (primary
issue) with a maturity date closest to the maturity date for the prepaid
Mortgage Loan. In the event that there are two such U.S. Treasury issues (a)
with the same coupon, the issue with the lower yield will be utilized, and (b)
with maturity dates equally close to the maturity date for the prepaid Mortgage
Loan, the issue with the earliest maturity date will be utilized.
For an example of the foregoing allocation of Prepayment Premiums and Yield
Maintenance Charges, see Annex B hereto. The Depositor makes no representation
as to the enforceability of the provision of any Mortgage Note requiring the
payment of a Prepayment Premium or Yield Maintenance Charge, or of the
collectibility of any Prepayment Premium or Yield Maintenance Charge. See
"Description of the Mortgage Pool--Certain Terms and Conditions of the Mortgage
Loans-Prepayment Provisions" herein.
DISTRIBUTIONS OF ADDITIONAL INTEREST. On each Distribution Date, any
Additional Interest collected on an ARD Loan during the related Collection
Period (net of any portion of such Additional Interest payable as a Principal
Recovery Fee) will be distributed among all the outstanding Classes of
Sequential Pay Certificates on a PRO RATA basis in accordance with the
respective initial Certificate Balances of such Classes of Certificates. There
can be no assurance that any Additional Interest will be collected on the ARD
Loans.
SUBORDINATION; ALLOCATION OF LOSSES AND CERTAIN EXPENSES
The rights of holders of the Class B, Class C, Class D and Class E
Certificates and each Class of the Private Certificates (collectively, the
"Subordinate Certificates") to receive distributions of amounts collected or
advanced on the Mortgage Loans will be subordinated, to the extent described
herein, to the rights of holders of the Class A and Class IO Certificates
(collectively, the "Senior Certificates") and each other such Class of
Subordinate Certificates, if any, with an earlier alphabetical Class
designation. This subordination is intended to enhance the likelihood of timely
receipt by the holders of the Senior Certificates of the full amount of
Distributable Certificate Interest payable in respect of such Classes of
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Certificates on each Distribution Date, and the ultimate receipt by the holders
of each Class of the Class A Certificates of principal in an amount equal to the
entire related Certificate Balance. Similarly, but to decreasing degrees, this
subordination is also intended to enhance the likelihood of timely receipt by
the holders of the Class B, the Class C, the Class D and the Class E
Certificates of the full amount of Distributable Certificate Interest payable in
respect of such Classes of Certificates on each Distribution Date, and the
ultimate receipt by the holders of such Certificates of, in the case of each
such Class thereof, principal equal to the entire related Certificate Balance.
The protection afforded to the holders of the Class E Certificates by means of
the subordination of the Private Certificates, to the holders of the Class D
Certificates by means of the subordination of the Class E and the Private
Certificates, to the holders of the Class C Certificates by means of the
subordination of the Class D, the Class E and the Private Certificates, to the
holders of the Class B Certificates by means of the subordination of the Class
C, the Class D, the Class E and the Private Certificates, and to the holders of
the Senior Certificates by means of the subordination of the Subordinate
Certificates, will be accomplished by (i) the application of the Available
Distribution Amount on each Distribution Date in accordance with the order of
priority described under "--Distributions--Application of the Available
Distribution Amount" above and (ii) by the allocation of Realized Losses and
Additional Trust Fund Expenses as described below. Until the first Distribution
Date after the aggregate of the Certificate Balances of the Subordinate
Certificates has been reduced to zero, the Class A-2 Certificates will receive
principal payments only after the Certificate Balances of the Class A-1
Certificates have been reduced to zero. However, the Class A-1, Class A-2 and
Class IO Certificates will bear shortfalls in collections and losses incurred in
respect of the Mortgage Loans PRO RATA. No other form of credit support will be
available for the benefit of the holders of the Offered Certificates.
On each Distribution Date, following all distributions on the Certificates
to be made on such date, the aggregate of all Realized Losses and Additional
Trust Fund Expenses that have been incurred since the Cut-off Date through the
end of the related Collection Period and that have not previously been allocated
as described below will be allocated among the respective Classes of Sequential
Pay Certificates (in each case in reduction of their respective Certificate
Balances) as follows, but in the aggregate only to the extent that the aggregate
Certificate Balance of all Classes of Sequential Pay Certificates remaining
outstanding after giving effect to the distributions on such Distribution Date
exceeds the aggregate Stated Principal Balance of the Mortgage Pool that will be
outstanding immediately following such Distribution Date: first, to the Class N
Certificates, until the remaining Certificate Balance of such Class of
Certificates is reduced to zero; second, to the Class M Certificates, until the
remaining Certificate Balance of such Class of Certificates is reduced to zero;
third, to the Class L Certificates, until the remaining Certificate Balance of
such Class of Certificates is reduced to zero; fourth, to the Class K
Certificates, until the remaining Certificate Balance of such Class of
Certificates is reduced to zero; fifth, to the Class J Certificates, until the
remaining Certificate Balance of such Class of Certificates is reduced to zero;
sixth, to the Class H Certificates, until the remaining Certificate Balance of
such Class of Certificates is reduced to zero; seventh, to the Class G
Certificates, until the remaining Certificate Balance of such Class of
Certificates is reduced to zero; eighth, to the Class F Certificates, until the
remaining Certificate Balance of such Class of Certificates is reduced to zero;
ninth, to the Class E Certificates, until the remaining Certificate Balance of
such Class of Certificates is zero; tenth, to the Class D Certificates, until
the remaining Certificate Balance of such Class of Certificates is reduced to
zero; eleventh, to the Class C Certificates, until the remaining Certificate
Balance of such Class of Certificates is reduced to zero; twelfth, to the Class
B Certificates, until the remaining Certificate Balance of such Class of
Certificates is reduced to zero; and, last, to the Class A-1 Certificates and
the Class A-2 Certificates, PRO RATA, in proportion to their respective
outstanding Certificate Balances, until the remaining Certificate Balances of
such Classes of Certificates are reduced to zero.
Any Realized Losses or Additional Trust Fund Expenses allocated in reduction
of the Certificate Balance of any Class of Sequential Pay Certificates will
result in a corresponding reduction in the notional amount for the Class IO
Component of the Class IO Certificates that is related to such Class of
Sequential Pay Certificates.
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"Realized Losses" are losses arising from the inability to collect all
amounts due and owing under any defaulted Mortgage Loan, including by reason of
the fraud or bankruptcy of the borrower or a casualty of any nature at the
related Mortgaged Property, to the extent not covered by insurance. The Realized
Loss in respect of a liquidated Mortgage Loan (or related REO Property) is an
amount generally equal to the excess, if any, of (a) the outstanding principal
balance of such Mortgage Loan as of the date of liquidation, together with (i)
all accrued and unpaid interest thereon at the related Mortgage Rate in effect
from time to time to but not including the Due Date in the Collection Period in
which the liquidation occurred (exclusive of any related Additional Interest)
and (ii) certain related unreimbursed servicing expenses, over (b) the aggregate
amount of Liquidation Proceeds, if any, recovered in connection with such
liquidation. If any portion of the debt due under a Mortgage Loan (other than
Additional Interest and default interest) is forgiven, whether in connection
with a modification, waiver or amendment granted or agreed to by the Special
Servicer or in connection with the bankruptcy or similar proceeding involving
the related borrower, the amount so forgiven also will be treated as a Realized
Loss.
"Additional Trust Fund Expenses" include, among other things, (i) any
Special Servicing Fees or Principal Recovery Fees paid to the Special Servicer,
(ii) any interest paid to the Master Servicer, Special Servicer and/or the
Trustee in respect of unreimbursed Advances, and (iii) any of certain
unanticipated, non-Mortgage Loan specific expenses of the Trust Fund, including
certain indemnities and reimbursements to the Trustee of the type described
under "Description of the Pooling Agreements--Certain Matters Regarding the
Trustee" in the Prospectus having the same rights to indemnity and reimbursement
as described thereunder with respect to the Trustee), certain indemnities and
reimbursements to the Master Servicer, the Special Servicer and the Depositor of
the type described under "Description of the Pooling Agreements--Certain Matters
Regarding the Master Servicer and the Depositor" in the Prospectus (the Special
Servicer having the same rights to indemnity and reimbursement as described
thereunder with respect to the Master Servicer), and certain federal, state and
local taxes, and certain tax related expenses, payable from the assets of the
Trust Fund and described under "Material Federal Income Tax
Consequences--Prohibited Transactions Tax and Other Taxes" in the Prospectus and
"Servicing of the Mortgage Loans--REO Properties" herein. Additional Trust Fund
Expenses will reduce amounts payable to Certificateholders and, subject to the
distribution priorities described above, may result in a loss on one or more
Classes of Offered Certificates.
P&I ADVANCES
On or about each Distribution Date, the Master Servicer will be obligated,
subject to the recoverability determination described in the next paragraph, to
make advances (each, a "P&I Advance") out of its own funds or, subject to the
replacement thereof as provided in the Pooling and Servicing Agreement, from
funds held in the Certificate Account that are not required to be distributed to
Certificateholders (or paid to any other Person pursuant to the Pooling and
Servicing Agreement) on such Distribution Date, in an amount that is generally
equal to the aggregate of all Scheduled Payments (other than Balloon Payments)
and any Assumed Scheduled Payments, net of related Servicing Fees and, if any,
Principal Recovery Fees, due or deemed due, as the case may be, in respect of
the Mortgage Loans during the related Collection Period, in each case to the
extent such amount was not paid by or on behalf of the related borrower or
otherwise collected as of the close of business on the related Determination
Date. The Master Servicer's obligations to make P&I Advances in respect of any
Mortgage Loan will continue until liquidation of such Mortgage Loan or
disposition of any REO Property acquired in respect thereof. However, if the
Monthly Payment on any Mortgage Loan has been reduced in connection with a
bankruptcy or similar proceeding or a modification, waiver or amendment granted
or agreed to by a Special Servicer, the Master Servicer will be required to
advance only the amount of the reduced Monthly Payment (net of related Servicing
Fees and, if any, Principal Recovery Fees) in respect of subsequent
delinquencies. In addition, if it is determined that an Appraisal Reduction
Amount (as defined below) exists with respect to any Required Appraisal Loan (as
defined below), then, with respect to the Distribution Date immediately
following the date of such determination and with respect to each
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subsequent Distribution Date for so long as such Appraisal Reduction Amount
exists, the Master Servicer will be required in the event of subsequent
delinquencies to advance in respect of such Mortgage Loan only an amount equal
to the product of (i) the amount of the P&I Advance that would otherwise be
required without regard to this sentence, multiplied by (ii) a fraction, the
numerator of which is equal to the Stated Principal Balance of such Mortgage
Loan, net of such Appraisal Reduction Amount, and the denominator of which is
equal to the Stated Principal Balance of such Mortgage Loan. Pursuant to the
terms of the Pooling and Servicing Agreement, if the Master Servicer fails to
make a P&I Advance required to be made, the Trustee shall then be required to
make such P&I Advance, in such case, subject to the recoverability standard
described below.
The Master Servicer (or the Trustee) will be entitled to recover any P&I
Advance made out of its own funds from any amounts collected in respect of the
Mortgage Loan (net of related Servicing Fees with respect to collections of
interest and net of related Principal Recovery Fees with respect to collections
of principal) as to which such P&I Advance was made whether such amounts are
collected in the form of late payments, Insurance Proceeds or Liquidation
Proceeds, or any other recovery of the related Mortgage Loan or REO Property
("Related Proceeds"). Neither the Master Servicer nor the Trustee will be
obligated to make any P&I Advance that it determines in accordance with the
servicing standards described herein, would, if made, not be recoverable from
Related Proceeds (a "Nonrecoverable P&I Advance"), and the Master Servicer (or
the Trustee) will be entitled to recover, from general funds on deposit in the
Certificate Account, any P&I Advance made that it later determines to be a
Nonrecoverable P&I Advance. See "Description of the Certificates--Advances in
Respect of Delinquencies" and "Description of the Pooling
Agreements--Certificate Account" in the Prospectus.
In connection with the recovery by the Master Servicer or the Trustee of any
P&I Advance made by it or the recovery by the Master Servicer, the Special
Servicer or the Trustee of any reimbursable servicing expense incurred by it
(each such P&I Advance or expense, an "Advance"), the Master Servicer, the
Special Servicer or the Trustee, as applicable, will be entitled to be paid, out
of any amounts then on deposit in the Certificate Account, interest compounded
annually at a per annum rate (the "Reimbursement Rate") equal to the "prime
rate" published in the "Money Rates" section of THE WALL STREET JOURNAL, as such
"prime rate" may change from time to time, accrued on the amount of such Advance
from the date made to but not including the date of reimbursement. To the extent
not offset or covered by amounts otherwise payable on the Private Certificates,
interest accrued on outstanding Advances will result in a reduction in amounts
payable on the Offered Certificates, subject to the distribution priorities
described herein.
APPRAISAL REDUCTIONS
Upon the earliest of the date (each such date, a "Required Appraisal Date")
that (1) any Mortgage Loan is sixty (60) days delinquent in respect of any
Monthly Payments, (2) any REO Property is acquired on behalf of the Trust Fund,
(3) any Mortgage Loan has been modified by the Special Servicer to reduce the
amount of any Monthly Payment, other than a Balloon Payment, (4) a receiver is
appointed and continues in such capacity in respect of the Mortgaged Property
securing any Mortgage Loan, (5) a borrower with respect to any Mortgage Loan is
subject to any bankruptcy proceeding or (6) a Balloon Payment with respect to
any Mortgage Loan has not been paid on its scheduled maturity date (each such
Mortgage Loan, including an REO Mortgage Loan, a "Required Appraisal Loan"), the
Special Servicer will be required to obtain (within 60 days of the applicable
Required Appraisal Date) an appraisal of the related Mortgaged Property prepared
in accordance with 12 CFR Section 225.62 and conducted in accordance with the
standards of the Appraisal Institute by a Qualified Appraiser, unless such an
appraisal had previously been obtained within the prior three months. A
"Qualified Appraiser" is an independent appraiser, selected by the Special
Servicer, that is a member in good standing of the Appraisal Institute, and
that, if the state in which the subject Mortgaged Property is located certifies
or licenses appraisers, is certified or licensed in such state, and in each such
case, who has a minimum of five years experience in the
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subject property type and market. The cost of such appraisal will be advanced by
the Special Servicer, subject to the Special Servicer's right to be reimbursed
therefor out of Related Proceeds or, if not reimbursable therefrom, out of
general funds on deposit in the Certificate Account. As a result of any such
appraisal, it may be determined that an "Appraisal Reduction Amount" exists with
respect to the related Required Appraisal Loan, such determination to be made
upon the later of 30 days after the Required Appraisal Date if no new appraisal
is required or upon receipt of a new appraisal. The Appraisal Reduction Amount
for any Required Appraisal Loan will equal the excess, if any, of (a) the sum
(without duplication), as of the Determination Date immediately succeeding the
date on which the appraisal is obtained, of (i) the Stated Principal Balance of
such Required Appraisal Loan, (ii) to the extent not previously advanced by or
on behalf of the Master Servicer, or the Trustee, all unpaid interest on the
Required Appraisal Loan through the most recent Due Date prior to such
Determination Date at a per annum rate equal to the related Net Mortgage Rate,
(iii) all accrued but unpaid Servicing Fees and any Additional Trust Fund
Expenses in respect of such Required Appraisal Loan, (iv) all related
unreimbursed Advances made by or on behalf of the Master Servicer, the Special
Servicer or the Trustee with respect to such Required Appraisal Loan and (v) all
currently due and unpaid real estate taxes and reserves owed for improvements
(net of any amount escrowed therefor) and assessments, insurance premiums, and,
if applicable, ground rents in respect of the related Mortgaged Property, over
(b) an amount equal to 90% of the appraised value (net of any prior liens) of
the related Mortgaged Property as determined by such appraisal.
Notwithstanding the foregoing, if any Required Appraisal Loan as to which an
Appraisal Reduction Amount has been established in accordance with the preceding
paragraph becomes a Corrected Mortgage Loan, then the Appraisal Reduction Amount
shall be deemed to be zero, subject to such Mortgage Loan again becoming subject
to the appraisal requirement described above; provided that, in the case of any
Required Appraisal Loan that has been modified as described in the immediately
preceding paragraph, the Appraisal Reduction Amount will be deemed to exist for
so long as the terms of the modification are in effect.
REPORTS TO CERTIFICATEHOLDERS; AVAILABLE INFORMATION
TRUSTEE REPORTS. Based on information provided in monthly reports prepared
by the Master Servicer and the Special Servicer and delivered to the Trustee,
the Trustee will be required to provide or make available either electronically
or by first class mail on each Distribution Date to each Certificateholder, each
initial Certificate Owner and (upon written request made to the Trustee) each
subsequent Certificate Owner (as identified to the reasonable satisfaction of
the Trustee), the Depositor, the Master Servicer, the Special Servicer, the
Underwriters and each Rating Agency:
1. A statement (a "Distribution Date Statement"), substantially in the
form of Annex C hereto, setting forth, among other things, for each
Distribution Date: (i) the amount of the distribution to the holders of each
Class of REMIC Regular Certificates in reduction of the Certificate Balance
thereof; (ii) the amount of the distribution to the holders of each Class of
REMIC Regular Certificates allocable to Distributable Certificate Interest;
(iii) the amount of the distribution to the holders of each Class of REMIC
Regular Certificates allocable to Prepayment Premiums and Yield Maintenance
Charges; (iv) the amount of the distribution to the holders of each Class of
REMIC Regular Certificates in reimbursement of previously allocated Realized
Losses and Additional Trust Fund Expenses; (v) the Available Distribution
Amount for such Distribution Date; (vi) (A) the aggregate amount of P&I
Advances made in respect of such Distribution Date and (B) the aggregate
amount of servicing advances and Nonrecoverable P&I Advances as of the close
of business on the related Determination Date; (vii) the aggregate unpaid
principal balance of the Mortgage Pool outstanding as of the close of
business on the related Determination Date; (viii) the aggregate Stated
Principal Balance of the Mortgage Pool outstanding immediately before and
immediately after such Distribution Date; (ix) the number, aggregate unpaid
principal balance, weighted average remaining term to
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maturity and weighted average Mortgage Rate of the Mortgage Loans as of the
close of business on the related Determination Date; (x) the number, and
aggregate Stated Principal Balance (immediately after such Distribution
Date) of Mortgage Loans (A) delinquent 30-59 days, (B) delinquent 60-89
days, (C) delinquent 90 days or more, and (D) as to which foreclosure
proceedings have been commenced; (xi) as to each Mortgage Loan referred to
in the preceding clause (x) above, (A) the loan number thereof, (B) the
Stated Principal Balance thereof immediately following such Distribution
Date and (C) a brief description of the status of any foreclosure
proceedings or any workout or loan modification negotiations with the
related borrower; (xii) with respect to any Mortgage Loan as to which a
liquidation event occurred during the related Collection Period (other than
a payment in full), (A) the loan number thereof, (B) the aggregate of all
liquidation proceeds and other amounts received in connection with such
liquidation event (separately identifying the portion thereof allocable to
distributions on the Certificates), and (C) the amount of any Realized Loss
in connection with such liquidation event; (xiii) with respect to any REO
Property included in the Trust Fund as to which a Final Recovery
Determination was made during the related Collection Period, (A) the loan
number of the related Mortgage Loan, (B) the aggregate of all liquidation
proceeds and other amounts received in connection with such Final Recovery
Determination (separately identifying the portion thereof allocable to
distributions on the Certificates), and (C) the amount of any Realized Loss
in respect of the related REO Property in connection with such Final
Recovery Determination; (xiv) the Accrued Certificate Interest and
Distributable Certificate Interest in respect of each Class of REMIC Regular
Certificates for such Distribution Date; (xv) any unpaid Distributable
Certificate Interest in respect of each Class of REMIC Regular Certificates
after giving effect to the distributions made on such Distribution Date;
(xvi) the Pass-Through Rate for each Class of REMIC Regular Certificates;
(xvii) the Principal Distribution Amount for such Distribution Date (and, in
the case of any principal prepayment or other unscheduled collection of
principal received during the related Collection Period, the loan number for
the related Mortgage Loan and the amount of such prepayment or other
collection of principal); (xviii) the aggregate of all Realized Losses
incurred during the related Collection Period and all Additional Trust Fund
Expenses incurred during the related Collection Period; (xix) the aggregate
of all Realized Losses and Additional Trust Fund Expenses that were
allocated on such Distribution Date; (xx) the Certificate Balance of each
Class of REMIC Regular Certificates (other than the Class IO Certificates)
and the notional amount of each Class IO Component immediately before and
immediately after such Distribution Date, separately identifying any
reduction therein due to the allocation of Realized Losses and Additional
Trust Fund Expenses on such Distribution Date; (xxi) the certificate factor
for each Class of REMIC Regular Certificates immediately following such
Distribution Date; (xxii) the aggregate amount of interest on P&I Advances
paid to the Master Servicer or the Trustee during the related Collection
Period; (xxiii) the aggregate amount of interest on servicing advances paid
to the Master Servicer, the Special Servicer and the Trustee during the
related Collection Period; (xxiv) (A) the aggregate amount of servicing
compensation paid to the Master Servicer and the Special Servicer during the
related Collection Period; (xxv) the loan number for each Required Appraisal
Loan and any related Appraisal Reduction Amount as of the related
Determination Date; (xxvi) the original and then current credit support
levels for each Class of REMIC Regular Certificates; (xxvii) the original
and then current ratings for each Class of REMIC Regular Certificates; and
(xxviii) the aggregate amount of Prepayment Premiums and Yield Maintenance
Charges collected.
2. A "CSSA Loan File" and a "CSSA Property File" (in electronic form and
substance as provided by the Master Servicer and/or the Special Servicer)
setting forth certain information with respect to the Mortgage Loans and the
Mortgaged Properties, respectively.
The Master Servicer and/or the Special Servicer is required to deliver (in
electronic format acceptable to the Trustee) to the Trustee prior to each
Distribution Date, and the Trustee will be required to provide or make available
either electronically or by first class mail to each Certificateholder, the
Depositor, the Underwriters and each Rating Agency on each Distribution Date,
the following nine reports providing the
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required information as of the Determination Date immediately preceding the
preparation of each such report:
(a) A "Delinquent Loan Status Report" containing substantially the
content set forth in Annex D attached hereto, prepared by the Master
Servicer setting forth, among other things, those Mortgage Loans that were
delinquent 30-59 days, delinquent 60-89 days, delinquent 90 days or more,
current but specially serviced, or in foreclosure but not REO Property.
(b) An "Historical Loan Modification Report" containing substantially
the content set forth in Annex E attached hereto, prepared by the Special
Servicer setting forth, among other things, those Mortgage Loans that have
been modified pursuant to the Pooling and Servicing Agreement (i) during the
related Collection Period and (ii) since the Cut-off Date, showing the
original and the revised terms thereof.
(c) An "Historical Loss Estimate Report" containing substantially the
content set forth in Annex F attached hereto, prepared by the Special
Servicer setting forth, among other things, (i) the aggregate amount of
Liquidation Proceeds and expenses relating to each Final Recovery
Determination, both during the related Collection Period and historically,
and (ii) the amount of Realized Losses occurring during the related
Collection Period, set forth on a loan-by-loan basis.
(d) An "REO Status Report" containing substantially the content set
forth in Annex G attached hereto, prepared by the Special Servicer setting
forth, among other things, with respect to each REO Property then currently
included in the Trust Fund, (i) the acquisition date of such REO Property,
(ii) the amount of income collected with respect to such REO Property (net
of related expenses) and other amounts, if any, received on such REO
Property during the related Collection Period and (iii) the value of the REO
Property based on the most recent appraisal or other valuation thereof
available to the Special Servicer as of such Determination Date (including
any prepared internally by the Special Servicer).
(e) A "Watch List Report" containing substantially the content set forth
in Annex H attached hereto, prepared by the Special Servicer and the Master
Servicer identifying each Mortgage Loan that is not a Specially Serviced
Mortgage Loan (i) with a debt service coverage ratio of less than 1.05x,
(ii) that has a stated maturity date occurring in the next sixty days, (iii)
that is delinquent in respect of its real estate taxes, (iv) for which any
outstanding Advances exist, (v) that has been a Specially Serviced Mortgage
Loan in the past 90 days, (vi) for which the debt service coverage ratio has
decreased by more than 10% in the prior 12 months, (vii) for which any lease
relating to more than 25% of the related Mortgaged Property has expired,
been terminated, is in default or will expire within the next three months,
(viii) that is late in making its Monthly Payment three or more times in the
preceding 12 months, (ix) with material deferred maintenance at the related
Mortgaged Property or (x) that is 30 or more days delinquent.
(f) A "Loan Payoff Notification Report" setting forth among other things
for each Mortgage Loan where notice of anticipated payoff has been received,
the Control No., the Property Name, the amount of principal expected to be
paid, the expected date of payment and the estimated amount of Yield
Maintenance or Prepayment Premium due.
(g) An "Operating Statement Analysis" containing substantially the
content set forth in Annex I together with copies of the operating
statements and rent rolls (but only to the extent the related borrower is
required by the Mortgage to deliver, or otherwise agrees to provide, such
information). The Special Servicer is required consistent with the servicing
standards described herein to endeavor to obtain such operating statements
and rent rolls.
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(h) With respect to any Mortgaged Property or REO Property, an "NOI
Adjustment Worksheet" containing substantially the content set forth in
Annex J for such Mortgaged Property (with the annual operating statements
attached thereto as an exhibit), presenting the computations made in
accordance with the methodology described in the Pooling and Servicing
Agreement to "normalize" the full year net operating income and debt service
coverage numbers used by the Special Servicer in the other reports
referenced above.
(i) A "Comparative Financial Status Report" containing substantially the
content set forth in Annex K setting forth, among other things, the
occupancy, revenue, net operating income and DSCR for each Mortgages Loan or
related Mortgaged Property, as applicable, as of the Determination Date
immediately preceding the preparation of such report for each of the
following three periods (to the extent such information is in the Special
Servicer's possession): (i) the most current available year-to-date, (ii)
each of the previous two full fiscal years stated separately; and (iii) the
"base year" (representing the original analysis of information used as of
the Cut-off Date).
The reports identified in clauses (a), (b), (c), (d) and (f) above are
referred to herein as the "Unrestricted Servicer Reports" and the reports
identified in clauses (e), (g), (h) and (i) above are referred to herein as the
"Restricted Servicer Reports".
In addition, within a reasonable period of time after the end of each
calendar year, the Trustee is required to send to each person who at any time
during the calendar year was a Certificateholder of record, a report summarizing
on an annual basis (if appropriate) certain items provided to Certificateholders
in the monthly Distribution Date Statements and such other information as may be
required to enable such Certificateholders to prepare their federal income tax
returns. Such information is required to include the amount of original issue
discount accrued on each Class of Certificates held by persons other than
Certificateholders and information regarding the expenses of the Trust Fund.
Such requirements shall be deemed to be satisfied to the extent such information
is provided pursuant to applicable requirements of the Code in force from time
to time.
The information that pertains to Specially Serviced Trust Fund Assets
reflected in reports will be based solely upon the reports delivered by the
Special Servicer or the Master Servicer to the Trustee prior to related
Distribution Date. Absent manifest error, none of the Master Servicer, the
Special Servicer or the Trustee will be responsible for the accuracy or
completeness of any information supplied to it by a Mortgagor or third party
that is included in any reports, statements, materials or information prepared
or provided by the Master Servicer, the Special Servicer or the Trustee, as
applicable.
INFORMATION AVAILABLE ELECTRONICALLY. The Trustee will make available each
month, to any interested party, the Distribution Date Statement via the
Trustee's internet website, electronic bulletin board and its fax-on-demand
service. In addition, the Trustee will make available each month the
Unrestricted Servicer Reports on the Trustee's Internet Website. The Trustee's
internet website will initially be located at "www.securitieslink.net/cmbs". The
Trustee's electronic bulletin board may be accessed by calling (301) 815-6620,
and its fax-on-demand service may be accessed by calling (301) 815-6610. For
assistance with the above mentioned services, investors may call (301) 815-6600.
In addition, the Trustee will also make Mortgage Loan information as presented
in the CSSA loan setup file and CSSA loan periodic update file format available
each month to any Certificateholder, any Certificate Owner, the Rating Agencies,
or any other interested party via the Trustee's internet website. In addition,
pursuant to the Pooling and Servicing Agreement, the Trustee will make
available, as a convenience for interested parties (and not in furtherance of
the distribution of the Prospectus or the Prospectus Supplement under the
securities laws), the Pooling and Servicing Agreement, the Prospectus and the
Prospectus Supplement via the Trustee's internet website. The Trustee will make
no representations or warranties as to the accuracy or completeness of such
documents and will assume no responsibility therefor. In addition, the Trustee
may disclaim responsibility for any information distributed by the Trustee for
which it is not the original source.
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The Trustee will make available each month, the Restricted Servicer Reports
and the CSSA Property File, to any holder or Certificate Owner of an Offered
Certificate or any person identified to the Trustee by any such holder or
Certificate Owner as a prospective transferee of an Offered Certificate or any
interest therein, the Rating Agencies, the Underwriters and to any of the
parties to the Pooling and Servicing Agreement (collectively, "Privileged
Persons") via the Trustee's internet website with the use of a password provided
by the Trustee to such person upon receipt by the Trustee from such person of a
certification in the form attached to the Pooling and Servicing Agreement;
provided, however, that the Rating Agencies, the Underwriters and the parties to
the Pooling and Servicing Agreement will not be required to provide such
certification.
The Master Servicer may make available each month via the Master Servicer's
Internet Website, initially located at "www.firstunion.com/strprod/cms", (i) to
any interested party, the Unrestricted Servicer Reports, the Distribution Date
Statement, the CSSA Loan File, CSSA Property File and the Prospectus Supplement,
and (ii) to any Privileged Person, with the use of a password provided by the
Master Servicer to such Privileged Person upon receipt by the Master Servicer
from such person of a certification in the form attached to the Pooling and
Servicing Agreement, the Restricted Servicer Reports and the CSSA Property File;
provided, however, that the Rating Agencies, the Underwriters and the parties to
the Pooling and Servicing Agreement will not be required to provide such
certification. For assistance with the Master Servicer's Internet Website,
investors may call (800) 326-1334.
In connection with providing access to the Trustee's internet website or
electronic bulletin board or the Master Servicer's internet website, the Trustee
or the Master Servicer, as applicable, may require registration and the
acceptance of a disclaimer. Neither the Trustee nor the Master Servicer shall be
liable for the dissemination of information in accordance with the Pooling
Agreement.
OTHER INFORMATION. The Pooling and Servicing Agreement requires that the
Master Servicer or the Special Servicer make available at its offices primarily
responsible for administration of the Trust Fund, during normal business hours,
for review by any holder or Certificate Owner owning an Offered Certificate or
an interest therein or any person identified to the Master Servicer or Special
Servicer, as the case may be, as a prospective transferee of an Offered
Certificate or an interest therein, originals or copies of, among other things,
the following items: (a) the Pooling and Servicing Agreement and any amendments
thereto, (b) all Distribution Date Statements delivered to holders of the
relevant Class of Offered Certificates since the Closing Date, (c) all officer's
certificates delivered to the Master Servicer since the Closing Date as
described under "Description of the Pooling Agreements--Evidence as to
Compliance" in the Prospectus, (d) all accountants' reports delivered with
respect to the Master Servicer since the Closing Date as described under
"Description of the Pooling Agreements--Evidence as to Compliance" in the
Prospectus, (e) the most recent property inspection report prepared by or on
behalf of the Special Servicer and delivered to the Master Servicer in respect
of each Mortgaged Property, (f) the most recent Mortgaged Property annual
operating statements and rent roll, if any, collected by or on behalf of the
Special Servicer and delivered to the Master Servicer, (g) any and all
modifications, waivers and amendments of the terms of a Mortgage Loan entered
into by the Special Servicer, (h) the Mortgage File relating to each Mortgage
Loan, and (i) any and all officers' certificates and other evidence prepared by
the Master Servicer to support the Master Servicer's or a Special Servicer's
determination that any Advance was or, if made, would not be recoverable from
Related Proceeds. Copies of any and all of the foregoing items will be available
from the Master Servicer or Special Servicer, as the case may be, upon request;
however, the Master Servicer or Special Servicer, as the case may be, will be
permitted to require payment of a sum sufficient to cover the reasonable costs
and expenses of providing such information to Certificateholders, Certificate
Owners and their prospective transferees, including, without limitation, copy
charges and reasonable fees for employee time and for space.
BOOK-ENTRY CERTIFICATES. Until such time as Definitive Offered Certificates
are issued in respect of the Book-Entry Certificates, the foregoing information
and access will be available to the holders of the Book-Entry Certificates only
to the extent it is forwarded by or otherwise available through DTC and its
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Participants. Any beneficial owner of a Book-Entry Certificate who does not
receive information through DTC or its Participants may request that Trustee
reports be mailed directly to it by written request to the Trustee (accompanied
by evidence of such beneficial ownership) at the Corporate Trust Office of the
Trustee. The manner in which notices and other communications are conveyed by
DTC to its Participants, and by its Participants to the holders of the
Book-Entry Certificates, will be governed by arrangements among them, subject to
any statutory or regulators requirements as may be in effect from time to time.
The Master Servicer, the Special Servicer, the Trustee and the Depositor are
required to recognize as Certificateholders only those persons in whose names
the Certificates are registered on the books and records of the Certificate
Registrar.
Upon written request of any Certificateholder of record made for purposes of
communicating with other Certificateholders with respect to their rights under
the Pooling and Servicing Agreement, the Certificate Registrar will furnish such
Certificateholder with a list of the other Certificateholders then of record.
ASSUMED FINAL DISTRIBUTION DATE; RATED FINAL DISTRIBUTION DATE
The "Assumed Final Distribution Date" with respect to any Class of REMIC
Regular Certificates is the Distribution Date on which the Certificate Balance
of such Class of Certificates (or, in the case of the Class IO Certificates, the
aggregate of the notional amounts of the respective Class IO Components) would
be reduced to zero based on the assumption that no Mortgage Loan is voluntarily
prepaid prior to its stated maturity date (except for the ARD Loans which are
assumed to be paid in full on their respective Anticipated Repayment Dates) and
otherwise based on the "Table Assumptions" set forth under "Yield and Maturity
Considerations--Weighted Average Life" herein, which Distribution Date shall in
each case be as follows:
<TABLE>
<CAPTION>
CLASS DESIGNATION ASSUMED FINAL DISTRIBUTION DATE
- ---------------------- ----------------------------------------------------
<S> <C>
Class A-1
Class A-2
Class IO
Class B
Class C
Class D
Class E
Class F
Class G
Class H
Class J
Class K
Class L
Class M
Class N
</TABLE>
The Assumed Final Distribution Dates set forth above were calculated without
regard to any delays in the collection of Balloon Payments and without regard to
a reasonable liquidation time with respect to any Mortgage Loans that may be
delinquent. Accordingly, in the event of defaults on the Mortgage Loans, the
actual final Distribution Date for one or more Classes of the Offered
Certificates may be later, and could be substantially later, than the related
Assumed Final Distribution Date(s).
In addition, the Assumed Final Distribution Dates set forth above were
calculated on the basis of a 0% CPR (as defined herein) (except that it is
assumed that the ARD Loans pay their respective outstanding principal balances
on their related Anticipated Repayment Dates) and no losses on the Mortgage
Loans. Because the rate of principal payments (including prepayments) on the
Mortgage Loans can be expected to exceed the scheduled rate of principal
payments, and could exceed such scheduled rate
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by a substantial amount, and because losses may occur in respect of the Mortgage
Loans, the actual final Distribution Date for one or more Classes of the Offered
Certificates may be earlier, and could be substantially earlier, than the
related Assumed Final Distribution Date(s). The rate of principal payments
(including prepayments) on the Mortgage Loans will depend on the characteristics
of the Mortgage Loans, as well as on the prevailing level of interest rates and
other economic factors, and no assurance can be given as to actual principal
payment experience. See "Yield and Maturity Considerations" and "Description of
the Mortgage Pool" herein and "Yield and Prepayment Considerations" in the
Prospectus.
The "Rated Final Distribution Date" with respect to each Class of Offered
Certificates is the first Distribution Date that follows the second anniversary
of the end of the amortization term for the Mortgage Loan that, as of the
Cut-off Date, has the longest remaining amortization term. The rating assigned
by a Rating Agency to any Class of Offered Certificates entitled to receive
distributions in respect of principal reflects an assessment of the likelihood
that Certificateholders of such Class will receive, on or before the Rated Final
Distribution Date, all principal distributions to which they are entitled. See
"Ratings" herein.
VOTING RIGHTS
At all times during the term of the Pooling and Servicing Agreement, 100% of
the voting rights for the Certificates (the "Voting Rights") will be allocated
among the respective Classes of Sequential Pay Certificates in proportion to the
Certificate Balances (as adjusted by treating any Appraisal Reduction Amount as
Realized Losses solely for the purposes of adjusting Voting Rights) of those
Classes. Voting Rights allocated to a Class of Certificates will be allocated
among the related Certificateholders in proportion to the percentage interests
in such Class evidenced by their respective Certificates. The Class A-1 and
Class A-2 Certificates will be treated as one Class for determining the
Controlling Class of Sequential Pay Certificates. In addition, if either the
Master Servicer or the Special Servicer is the holder of any Sequential Pay
Certificate, neither of the Master Servicer or Special Servicer, in its capacity
as a Certificateholder, will have Voting Rights with respect to matters
concerning compensation affecting the Master Servicer or the Special Servicer.
See "Description of the Certificates--Voting Rights" in the Prospectus.
TERMINATION
The obligations created by the Pooling and Servicing Agreement will
terminate following the earlier of (i) the final payment (or advance in respect
thereof) or other liquidation of the last Mortgage Loan or REO Property subject
thereto, and (ii) the purchase of all of the Mortgage Loans and all of the REO
Properties remaining in the Trust Fund, if any, by the Master Servicer, the
Special Servicer, the Depositor, Lehman Brothers Inc. or any single
Certificateholder that is entitled to greater than 50% of the Voting Rights
allocated to the Class of Sequential Pay Certificates with the latest
alphabetical class designation then outstanding (or if no Certificateholder is
entitled to greater than 50% of the Voting Rights of such Class, the
Certificateholder with the largest percentage of Voting Rights allocated to such
Class) (the "Majority Subordinate Certificateholder") and distribution thereof
to the Certificateholders. Written notice of termination of the Pooling and
Servicing Agreement will be given to each Certificateholder, and the final
distribution will be made only upon surrender and cancellation of the
Certificates at the office of the Trustee or other registrar for the
Certificates or at such other location as may be specified in such notice of
termination.
Any such purchase by the Master Servicer, the Special Servicer, the
Depositor, Lehman Brothers Inc. or the Majority Subordinate Certificateholder of
all the Mortgage Loans and all of the REO Properties, if any, remaining in the
Trust Fund is required to be made at a price equal to (i) the aggregate Purchase
Price of all the Mortgage Loans (other than REO Mortgage Loans) then included in
the Trust Fund, plus (ii) the fair market value of all REO Properties then
included in the Trust Fund, as determined by an appraiser mutually agreed upon
by the Master Servicer and the Trustee, minus (iii) if the purchaser is the
Master
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Servicer, the aggregate of amounts payable or reimbursable to the Master
Servicer under the Pooling and Servicing Agreement. Such purchase will effect
early retirement of the then outstanding Offered Certificates, but the right of
the Master Servicer, the Special Servicer, Lehman Brothers Inc., the Majority
Subordinate Certificateholder or the Depositor to effect such termination is
subject to the requirement that the then aggregate Stated Principal Balance of
the Mortgage Pool be less than 1% of the Initial Pool Balance.
The purchase price paid in connection with the purchase of all Mortgage
Loans and REO Properties remaining in the Trust Fund, exclusive of any portion
thereof payable or reimbursable (as if such purchase price constituted
liquidation proceeds) to any person other than the Certificateholders, will
constitute part of the Available Distribution Amount for the final Distribution
Date. The Available Distribution Amount for the final Distribution Date will be
distributed by the Trustee generally as described herein under
"--Distributions--Application of the Available Distribution Amount", except that
the distributions of principal on any Class of Sequential Pay Certificates
described thereunder will be made, subject to available funds and the
distribution priorities described thereunder, in an amount equal to the entire
Certificate Balance of such Class remaining outstanding, and except that any
distributions of principal on the respective Classes of Class A Certificates (if
more than one is then outstanding) described thereunder will be made on a pro
rata basis in accordance with their respective Certificate Balances.
THE TRUSTEE
Norwest Bank Minnesota, National Association ("Norwest Bank") will act as
Trustee pursuant to the Pooling and Servicing Agreement. Norwest Bank, a direct,
wholly owned subsidiary of Norwest Corporation, is a national banking
association originally chartered in 1872 and is engaged in a wide range of
activities typical of a national bank. Norwest Bank's principal office is
located at Norwest Center, Sixth and Marquette, Minneapolis, Minnesota
55479-0113. Certificate transfer services are conducted at Norwest Bank's
offices in Minneapolis. Norwest Bank otherwise conducts its trustee and
securities administration services at its offices in Columbia, Maryland. Its
address there is 11000 Broken Land Parkway, Columbia, Maryland 21044-3562. In
addition, Norwest Bank maintains a trust office in New York located at 3 New
York Plaza, New York, New York 10004. Certificateholders and other interested
parties should direct their inquiries to the New York office. The telephone
number is (212) 509-7900. See "Description of the Pooling Agreements--The
Trustee," "--Duties of the Trustee," "--Certain Matters Regarding the Trustee"
and "--Resignation and Removal of the Trustee" in the Prospectus. As
compensation for its services, the Trustee will be entitled to receive monthly,
from general funds on deposit in the Certificate Account, the Trustee Fee. The
"Trustee Fee" for each Mortgage Loan and REO Loan for any Distribution Date will
equal one month's interest for the most recently ended calendar month
(calculated on the basis of a 360-day year consisting of twelve 30-day months),
accrued at the trustee fee rate on the Stated Principal Balance of such Mortgage
Loan or REO Loan, as the case may be, outstanding immediately following the
prior Distribution Date (or, in the case of the initial Distribution Date, as of
the Closing Date). The trustee fee rate will be a per annum rate set forth in
the Pooling and Servicing Agreement.
The Trustee will also have certain duties with respect to REMIC
administration (in such capacity the "REMIC Administrator"). See "Material
Federal Income Tax Consequences--REMICs--Reporting and Other Administrative
Matters" in the Prospectus.
YIELD AND MATURITY CONSIDERATIONS
YIELD CONSIDERATIONS
GENERAL. The yield on any Offered Certificate will depend on (a) the price
at which such Certificate is purchased by an investor and (b) the rate, timing
and amount of distributions on such Certificate. The rate, timing and amount of
distributions on any Offered Certificate will in turn depend on, among other
things, (i) the Pass-Through Rate for such Certificate (deemed, in the case of a
Class IO Certificate, to
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equal the weighted average of the Pass-Through Rates for the respective Class IO
Components from time to time), (ii) the rate and timing of principal payments
(including principal prepayments) and other principal collections on the
Mortgage Loans and the extent to which such amounts are to be applied in
reduction of the Certificate Balance or notional amount of the related Class or
Class IO Component, as the case may be, (iii) the rate, timing and severity of
Realized Losses and Additional Trust Fund Expenses and the extent to which such
losses and expenses are allocable in reduction of the Certificate Balance or
notional amount of the related Class or Class IO Component, as the case may be,
and (iv) the timing and severity of any Net Aggregate Prepayment Interest
Shortfalls and the extent to which such shortfalls are allocable in reduction of
the Distributable Certificate Interest payable on the related Class.
RATE AND TIMING OF PRINCIPAL PAYMENT. The yield to holders of the Class IO
Certificates will be extremely sensitive to, and the yield to holders of any
other Offered Certificates purchased at a discount or premium will be affected
by, the rate and timing of principal payments made in reduction of the
Certificate Balance of any Class of Sequential Pay Certificates and,
correspondingly, the notional amount of any Class IO Component. As described
herein, the Principal Distribution Amount for each Distribution Date will
generally be distributable first in respect of the Class A-1 Certificates until
the Certificate Balance thereof is reduced to zero, and thereafter will
generally be distributable entirely in respect of the Class A-2 Certificates,
the Class B Certificates, the Class C Certificates, the Class D Certificates and
the Class E Certificates, in that order, in each case until the Certificate
Balance of such Class of Certificates is reduced to zero. Any reduction of the
Certificate Balance of any Class of Sequential Pay Certificates will result in a
corresponding reduction in the notional amount of the related Class IO
Component. Consequently, the rate and timing of principal payments that are
distributed or otherwise result in reduction of the Certificate Balance of any
Class of Offered Certificates or the notional amount of a Class IO Component, as
the case may be, will be directly related to the rate and timing of principal
payments on or in respect of the Mortgage Loans, which will in turn be affected
by the amortization schedules thereof, the dates on which Balloon Payments are
due and the rate and timing of principal prepayments and other unscheduled
collections thereon (including for this purpose, collections made in connection
with liquidations of Mortgage Loans due to defaults, casualties or condemnations
affecting the Mortgaged Properties, or purchases of Mortgage Loans out of the
Trust Fund). Prepayments and, assuming the respective stated maturity dates
therefor have not occurred, liquidations and purchases of the Mortgage Loans,
will result in distributions on the Certificates of amounts that would otherwise
be distributed over the remaining terms of the Mortgage Loans. Defaults on the
Mortgage Loans, particularly at or near their stated maturity dates, may result
in significant delays in payments of principal on the Mortgage Loans (and,
accordingly, on the Offered Certificates that are Sequential Pay Certificates)
while work-outs are negotiated or foreclosures are completed. The failure on the
part of any borrower to pay its ARD Loan on its Anticipated Repayment Date may
also result in significant delays in payments of principal on such ARD Loan
(and, accordingly, on the Offered Certificates that are Sequential Pay
Certificates). See "Servicing of the Mortgage Loans--Modifications, Waivers and
Amendments" herein and "Description of the Pooling Agreements--Realization Upon
Defaulted Mortgage Loans" and "Certain Legal Aspects of Mortgage
Loans--Foreclosure" in the Prospectus.
The extent to which the yield to maturity of any Class of Offered
Certificates may vary from the anticipated yield will depend upon the degree to
which such Certificates are purchased at a discount or premium and when, and to
what degree, payments of principal on the Mortgage Loans in turn are distributed
or otherwise result in reduction of the Certificate Balance or notional amount
of a Class IO Component, as the case may be, of such Certificates. An investor
should consider, in the case of any Offered Certificate purchased at a discount,
the risk that a slower than anticipated rate of principal payments on the
Mortgage Loans could result in an actual yield to such investor that is lower
than the anticipated yield and, in the case of a Class IO Certificate or any
other Offered Certificate purchased at a premium, the risk that a faster than
anticipated rate of principal payments could result in an actual yield to such
investor that is lower than the anticipated yield. In general, the earlier a
payment of principal on the Mortgage Loans is distributed or otherwise results
in reduction of the principal balance (or notional
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amount of a Class IO Component, as applicable) of an Offered Certificate
purchased at a discount or premium, the greater will be the effect on an
investor's yield to maturity. As a result, the effect on an investor's yield of
principal payments on the Mortgage Loans occurring at a rate higher (or lower)
than the rate anticipated by the investor during any particular period would not
be fully offset by a subsequent like reduction (or increase) in the rate of such
principal payments. INVESTORS IN THE CLASS IO CERTIFICATES SHOULD FULLY CONSIDER
THE RISK THAT A RAPID RATE OF PRINCIPAL PREPAYMENTS ON THE MORTGAGE LOANS COULD
RESULT IN THE FAILURE OF SUCH INVESTORS TO RECOUP THEIR INITIAL INVESTMENTS.
Because the rate of principal payments on the Mortgage Loans will depend on
future events and a variety of factors (as described more fully below), no
assurance can be given as to such rate or the rate of principal prepayments in
particular. The Depositor is not aware of any relevant publicly available or
authoritative statistics with respect to the historical prepayment experience of
a large group of mortgage loans comparable to the Mortgage Loans.
LOSSES AND SHORTFALLS. The yield to holders of the Offered Certificates
will also depend on the extent to which such holders are required to bear the
effects of any losses or shortfalls on the Mortgage Loans. Losses and other
shortfalls on the Mortgage Loans will, with the exception of any Net Aggregate
Prepayment Interest Shortfalls, generally be borne by the holders of the
respective Classes of Sequential Pay Certificates, to the extent of amounts
otherwise distributable in respect of their Certificates, in reverse
alphabetical order of their Class designations. Realized Losses and Additional
Trust Fund Expenses will be allocated, as and to the extent described herein, to
the respective Classes of Sequential Pay Certificates (in reduction of the
Certificate Balance of each such Class), in reverse alphabetical order of their
Class designations. Any Realized Loss or Additional Trust Fund Expenses
allocated in reduction of the Certificate Balance of any Class of Sequential Pay
Certificates will result in a corresponding reduction in the notional amount of
the related Class IO Component. As more fully described herein under
"Description of the Certificates--Distributions--Distributable Certificate
Interest," Net Aggregate Prepayment Interest Shortfalls will generally be borne
by the respective Classes of REMIC Regular Certificates on a pro rata basis.
PASS-THROUGH RATES. The Pass-Through Rate applicable to each Class IO
Component will be variable and will be equal to the Weighted Average Net
Mortgage Rate from time to time minus the Pass-Through Rate on the Class of
Sequential Pay Certificates relating to such Class IO Component. Accordingly,
the Pass-Through Rate on the Class IO Components and, correspondingly, the yield
on the Class IO Certificates, will be sensitive to changes in the relative
composition of the Mortgage Pool as a result of scheduled amortization,
voluntary prepayments and liquidations and to changes in the relative sizes of
the Certificate Balances of the respective Classes of Sequential Pay
Certificates.
CERTAIN RELEVANT FACTORS. The rate and timing of principal payments and
defaults and the severity of losses on the Mortgage Loans may be affected by a
number of factors, including, without limitation, prevailing interest rates, the
terms of the Mortgage Loans (for example, Lockout Periods, provisions requiring
the payment of Prepayment Premiums and Yield Maintenance Charges and
amortization terms that require Balloon Payments), the demographics and relative
economic vitality of the areas in which the Mortgaged Properties are located and
the general supply and demand for rental units, hotel/motel guest rooms, health
care facility beds or comparable commercial space, as applicable, in such areas,
the quality of management of the Mortgaged Properties, the servicing of the
Mortgage Loans, possible changes in tax laws and other opportunities for
investment. See "Risk Factors--The Mortgage Loans" and "Description of the
Mortgage Pool" herein and "Yield and Maturity Considerations--Principal
Prepayments" in the Prospectus.
The rate of prepayment on the Mortgage Pool is likely to be affected by
prevailing market interest rates for mortgage loans of a comparable type, term
and risk level. When the prevailing market interest rate is below a mortgage
interest rate, the related borrower has an incentive to refinance its mortgage
loan. As of the Cut-off Date, all of the Mortgage Loans may be prepaid at any
time after the expiration of any applicable Lockout Period and/or any period
when the holder of a Mortgage may require a borrower to pledge Defeasance
Collateral in lieu of prepaying the related Mortgage Loan (a "Required
Defeasance
S-117
<PAGE>
Period"), subject, in most cases, to the payment of a Prepayment Premium or a
Yield Maintenance Charge. A requirement that a prepayment be accompanied by a
Prepayment Premium or Yield Maintenance Charge may not provide a sufficient
economic disincentive to deter a borrower from refinancing at a more favorable
interest rate.
Depending on prevailing market interest rates, the outlook for market
interest rates and economic conditions generally, some borrowers may sell or
refinance Mortgaged Properties in order to realize their equity therein, to meet
cash flow needs or to make other investments. In addition, some borrowers may be
motivated by federal and state tax laws (which are subject to change) to sell
Mortgaged Properties prior to the exhaustion of tax depreciation benefits.
The Depositor makes no representation as to the particular factors that will
affect the rate and timing of prepayments and defaults on the Mortgage Loans, as
to the relative importance of such factors, as to the percentage of the
principal balance of the Mortgage Loans that will be prepaid or as to whether a
default will have occurred as of any date or as to the overall rate of
prepayment or default on the Mortgage Loans.
DELAY IN PAYMENT OF DISTRIBUTIONS. Because monthly distributions will not
be made to Certificateholders until a date that is scheduled to be at least 17
days following the Due Dates for the Mortgage Loans during the related
Collection Period, the effective yield to the holders of the Offered
Certificates will be lower than the yield that would otherwise be produced by
the applicable Pass-Through Rates and purchase prices (assuming such prices did
not account for such delay).
UNPAID DISTRIBUTABLE CERTIFICATE INTEREST. As described under "Description
of the Certificates-- Distributions--Application of the Available Distribution
Amount" herein, if the portion of the Available Distribution Amount
distributable in respect of interest on any Class of Offered Certificates on any
Distribution Date is less than the Distributable Certificate Interest then
payable for such Class, the shortfall will be distributable to holders of such
Class of Certificates on subsequent Distribution Dates, to the extent of
available funds. Any such shortfall will not bear interest, however, and will
therefore negatively affect the yield to maturity of such Class of Certificates
for so long as it is outstanding.
YIELD SENSITIVITY OF THE CLASS IO CERTIFICATES. The yield to maturity on
the Class IO Certificates will be extremely sensitive to the rate and timing of
principal payments (including by reason of prepayments, defaults and
liquidations) on the Mortgage Loans. ACCORDINGLY, INVESTORS IN THE CLASS IO
CERTIFICATES SHOULD FULLY CONSIDER THE ASSOCIATED RISKS, INCLUDING THE RISK THAT
A RAPID RATE OF PREPAYMENT OF THE MORTGAGE LOANS COULD RESULT IN THE FAILURE OF
SUCH INVESTORS TO FULLY RECOUP THEIR INITIAL INVESTMENTS.The allocation of a
portion of collected Prepayment Premiums and Yield Maintenance Charges to the
Class IO Certificates is intended to reduce those risks; however, such
allocation may be insufficient to offset fully the adverse effects on the yields
on such Class of Certificates that the related prepayments may otherwise have.
PRICE/YIELD TABLES
The tables beginning on page B- of Annex B hereto (the "Yield Tables") show
the pre-tax corporate bond equivalent ("CBE") yield to maturity, modified
duration (except in the case of the Class IO Certificates), weighted average
life, first Distribution Date on which principal is to be paid ("First Principal
Payment Date") and final Distribution Date on which principal is to be paid
("Last Principal Payment Date") with respect to each Class of Offered
Certificates, prepared using the Table Assumptions (as described below) and,
where applicable, the specified assumed purchase prices (which prices do not
include accrued interest). Assumed purchase prices are expressed in 32nds (i.e.
100.04 means 100 4/32%) as a percentage of the initial Certificate Balance (or,
in the case of the Class IO Certificates, of the aggregate of the initial
notional amounts of the respective Class IO Components) of each Class of Offered
Certificates. For purposes of the Yield Tables relating to the Class IO
Certificates, the information therein relating to weighted average life, First
Principal Payment Date and Last Principal Payment Date is being calculated in
respect of the aggregate notional amount of the respective Class IO Components
of the Class IO Certificates.
S-118
<PAGE>
The yields set forth in the Yield Tables were calculated by determining the
monthly discount rates which, when applied to the assumed stream of cash flows
to be paid on each Class of Offered Certificates, would cause the discounted
present value of such assumed stream of cash flows to equal the assumed purchase
prices, plus accrued interest from and including the Cut-off Date to but
excluding May 28, 1998, and by converting such monthly rates to semi-annual
corporate bond equivalent rates. Such calculation does not take into account
variations that may occur in the interest rates at which investors may be able
to reinvest funds received by them as distributions on the Offered Certificates
and consequently does not purport to reflect the return on any investment in
such Classes of Offered Certificates when such reinvestment rates are
considered. For purposes of the Yield Tables (except in the case of the Class IO
Certificates), "modified duration" has been calculated using the modified
Macaulay Duration as specified in the "PSA Standard Formulas." The Macaulay
Duration is calculated as the present value weighted average time to receive
future payments of principal and interest, and the PSA Standard Formula modified
duration is calculated by dividing the Macaulay Duration by the appropriate
semi-annual compounding factor. The duration of a security may be calculated
according to various methodologies; accordingly, no representation is made by
the Depositor or any other person that the "modified duration" approach used
herein is appropriate. Duration, like yield, will be affected by the prepayment
rate of the Mortgage Loans and extensions in respect of Balloon Payments that
actually occur during the life of the Class A, Class B, Class C, Class D and
Class E Certificates and by the actual performance of the Mortgage Loans, all of
which may differ, and may differ significantly, from the assumptions used in
preparing the Yield Tables.
Prepayments on mortgage loans may be measured by a prepayment standard or
model. The model used in this Prospectus Supplement is the "Constant Prepayment
Rate" or "CPR" model. The CPR model represents an assumed constant annual rate
of prepayment each month, expressed as a per annum percentage of the then
scheduled principal balance of one or more mortgage loans. As used in the Yield
Tables, the columns headed "0% CPR" assumes that none of the Mortgage Loans is
prepaid in whole or in part before maturity or the related Anticipated Repayment
Date. The columns headed "10% CPR", "20% CPR", "30% CPR" and "50% CPR,"
respectively, assume that prepayments are made each month at those levels of CPR
on each Mortgage Loan that is eligible for prepayment under the Table
Assumptions (each such scenario, a "Scenario").
The Yield Tables were derived from calculations based on the following
assumptions (the "Table Assumptions"): (i) except as set forth in clause (xi)
below, no Mortgage Loan prepays during any applicable Lockout Period or Required
Defeasance Period or during any period when a Prepayment Premium or a Yield
Maintenance Charge could be required in connection with a voluntary prepayment
of principal; otherwise, in the case of each of the Yield Tables, each Mortgage
Loan is assumed to prepay at the indicated level of CPR, with each prepayment
being applied on the first day of the applicable month in which it is assumed to
be received, (ii) the Pass-Through Rates and initial Certificate Balances of the
respective Classes of Sequential Pay Certificates are as described herein, (iii)
there are no delinquencies or defaults with respect to, and no modifications,
waivers or amendments of the terms of, the Mortgage Loans, (iv) there are no
Realized Losses, Additional Trust Fund Expenses or Appraisal Reduction Amounts
with respect to the Mortgage Loans or the Trust Fund, (v) scheduled interest and
principal payments on the Mortgage Loans are timely received, (vi) all Mortgage
Loans have Due Dates on the first day of each month and accrue interest on the
respective basis described herein (i.e., a 30/360 basis or an actual/360 basis),
(vii) all prepayments are accompanied by a full month's interest and there are
no Prepayment Interest Shortfalls, (viii) there are no breaches of any Seller's
representations and warranties regarding its Mortgage Loans, (ix) no Prepayment
Premiums or Yield Maintenance Charges are collected, (x) no party entitled
thereto exercises its right of optional termination of the Trust Fund described
herein, (xi) the Mortgage Loans which have Anticipated Repayment Dates are
repaid in full on their respective Anticipated Repayment Dates, and such
Anticipated Repayment Date for any such Mortgage Loan is deemed to be its
maturity date, (xii) distributions on the Certificates are made on the 18th day
(each assumed to be a business day) of each month, commencing in June 1998, and
(xiii) the Closing Date for the sale of the Offered Certificates is May 28,
1998.
S-119
<PAGE>
The characteristics of the Mortgage Loans differ in certain respects from
those assumed in preparing the Yield Tables, and the Yield Tables are presented
for illustrative purposes only. In particular, none of the Mortgage Loans permit
voluntary partial prepayments. Thus neither the Mortgage Pool nor any Mortgage
Loan will prepay at any constant rate, and it is unlikely that the Mortgage
Loans will prepay in a manner consistent with the designated Scenario for the
Yield Tables. In addition, there can be no assurance that the Mortgage Loans
will prepay at any particular rate, that the Mortgage Loans will not prepay
(involuntarily or otherwise) during Lockout Periods and/or Required Defeasance
Periods, that the actual pre-tax yields on, or any other payment characteristics
of, any Class of Offered Certificates will correspond to any of the information
shown in the Yield Tables, or that the aggregate purchase prices of the Offered
Certificates will be as assumed. Accordingly, investors must make their own
decisions as to the appropriate assumptions (including prepayment assumptions)
to be used in deciding whether to purchase the Offered Certificates.
WEIGHTED AVERAGE LIFE
The weighted average life of any Class A-1, Class A-2, Class B, Class C,
Class D or Class E Certificate refers to the average amount of time that will
elapse from the assumed Closing Date until each dollar allocable to principal of
such Certificate is distributed to the investor. The weighted average life of
any such Offered Certificate will be influenced by, among other things, the rate
at which principal on the Mortgage Loans is paid or otherwise collected or
advanced and applied to pay principal of such Offered Certificate. As described
herein, the Principal Distribution Amount for each Distribution Date will
generally be distributable first in respect of the Class A-1 Certificates until
the Certificate Balance thereof is reduced to zero, and will thereafter
generally be distributable entirely in respect of the Class A-2 Certificates,
the Class B Certificates, the Class C Certificates, the Class D Certificates and
the Class E Certificates, in that order, in each case until the Certificate
Balance of such Class of Certificates is reduced to zero.
The following tables indicate the percentage of the initial Certificate
Balance of each Class of Offered Certificates that would be outstanding after
each of the dates shown and the corresponding weighted average life of each such
Class of Offered Certificates. The tables have been prepared on the basis of the
Table Assumptions. To the extent that the Mortgage Loans or the Certificates
have characteristics that differ from those assumed in preparing the tables, the
Class A-1, Class A-2, Class B, Class C, Class D and/ or Class E Certificates may
mature earlier or later than indicated by the tables. In particular, partial
prepayments on the Mortgage Loans in fact are not permitted. Accordingly, the
Mortgage Loans will not prepay at any constant rate, and it is highly unlikely
that the Mortgage Loans will prepay in a manner consistent with the assumptions
described above. In addition, variations in the actual prepayment experience and
in the balance of the Mortgage Loans that actually prepay may increase or
decrease the percentages of initial Certificate Balances (and shorten or extend
the weighted average lives) shown in the following tables. Investors are urged
to conduct their own analyses of the rates at which the Mortgage Loans may be
expected to prepay.
The tables set forth below were prepared on the basis of the Table
Assumptions and indicate the resulting weighted average lives of each Class of
Offered Certificates (other than the Class IO Certificates) and set forth the
percentages of the initial Certificate Balance of such Class of Offered
Certificates that would be outstanding after each of the dates shown in each
case assuming the indicated level of CPR. For purposes of the following tables,
the weighted average life of an Offered Certificate (other than the Class IO
Certificates) is determined by (i) multiplying the amount of each principal
distribution thereon by the number of years from the assumed Closing Date of
such Certificate to the related Distribution Date, (ii) summing the results and
(iii) dividing the sum by the aggregate amount of the reductions in the
principal balance of such Certificate.
S-120
<PAGE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS A-1 CERTIFICATES
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, YM OR
PP-OTHERWISE AT INDICATED CPR
---------------------------------------------------------------------------------
DISTRIBUTION DATE 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- -------------------------------------------- ------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Closing Date................................
May 1999....................................
May 2000....................................
May 2001....................................
May 2002....................................
May 2003....................................
May 2004 and thereafter.....................
Weighted Average Life (in years)............
</TABLE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS A-2 CERTIFICATES
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, YM OR
PP-OTHERWISE AT INDICATED CPR
---------------------------------------------------------------------------------
DISTRIBUTION DATE 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- -------------------------------------------- ------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Closing Date................................
May 1999....................................
May 2000....................................
May 2001....................................
May 2002....................................
May 2003....................................
May 2004....................................
May 2005....................................
May 2006....................................
May 2007 and thereafter.....................
Weighted Average Life (in years)............
</TABLE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS B CERTIFICATES
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, YM OR
PP-OTHERWISE AT INDICATED CPR
---------------------------------------------------------------------------------
DISTRIBUTION DATE 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- -------------------------------------------- ------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Closing Date................................
May 1999....................................
May 2000....................................
May 2001....................................
May 2002....................................
May 2003....................................
May 2004....................................
May 2005....................................
May 2006....................................
May 2007....................................
May 2008....................................
May 2009....................................
May 2010....................................
May 2011....................................
May 2012 and thereafter.....................
Weighted average life (in years)............
</TABLE>
S-121
<PAGE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS C CERTIFICATES
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, YM OR
PP-OTHERWISE AT INDICATED CPR
-----------------------------------------------------
DISTRIBUTION DATE 0% CPR 10% CPR 20% CPR
- ------------------------------------------------------------------ --------------- ----------------- -----------------
<S> <C> <C> <C>
Closing Date......................................................
May 1999..........................................................
May 2000..........................................................
May 2001..........................................................
May 2002..........................................................
May 2003..........................................................
May 2004..........................................................
May 2005..........................................................
May 2006..........................................................
May 2007..........................................................
May 2008..........................................................
May 2009..........................................................
May 2010..........................................................
May 2011..........................................................
May 2012 and thereafter...........................................
Weighted average life (in years)..................................
<CAPTION>
DISTRIBUTION DATE 30% CPR 50% CPR
- ------------------------------------------------------------------ ----------------- -----------------
<S> <C> <C>
Closing Date......................................................
May 1999..........................................................
May 2000..........................................................
May 2001..........................................................
May 2002..........................................................
May 2003..........................................................
May 2004..........................................................
May 2005..........................................................
May 2006..........................................................
May 2007..........................................................
May 2008..........................................................
May 2009..........................................................
May 2010..........................................................
May 2011..........................................................
May 2012 and thereafter...........................................
Weighted average life (in years)..................................
</TABLE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS D CERTIFICATES
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, YM OR
PP-OTHERWISE AT INDICATED CPR
---------------------------------------------------------------------------------
DISTRIBUTION DATE 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- ---------------------------------------------- ------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Closing Date..................................
May 1999......................................
May 2000......................................
May 2001......................................
May 2002......................................
May 2003......................................
May 2004......................................
May 2005......................................
May 2006......................................
May 2007......................................
May 2008......................................
May 2009......................................
May 2010......................................
May 2011......................................
May 2012 and thereafter.......................
Weighted average life (in years)..............
</TABLE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS E CERTIFICATES
<TABLE>
<CAPTION>
0% CPR DURING LOCKOUT, YM OR
PP-OTHERWISE AT INDICATED CPR
---------------------------------------------------------------------------------
DISTRIBUTION DATE 0% CPR 10% CPR 20% CPR 30% CPR 50% CPR
- ---------------------------------------------- ------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Closing Date..................................
May 1999......................................
May 2000......................................
May 2001......................................
May 2002......................................
May 2003......................................
May 2004......................................
May 2005......................................
May 2006......................................
May 2007......................................
May 2008......................................
May 2009......................................
May 2010......................................
May 2011......................................
May 2012 and thereafter.......................
Weighted average life (in years)..............
</TABLE>
S-122
<PAGE>
USE OF PROCEEDS
Substantially all of the proceeds from the sale of the Offered Certificates
will be used by the Depositor to purchase the Mortgage Loans and to pay certain
expenses in connection with the issuance of the Certificates.
MATERIAL FEDERAL INCOME TAX CONSEQUENCES
Upon the issuance of the Offered Certificates, Willkie Farr & Gallagher,
counsel to the Depositor, will deliver its opinion generally to the effect that,
assuming compliance with all provisions of the Pooling and Servicing Agreement,
for federal income tax purposes, each portion of the Trust Fund designated in
the Pooling and Servicing Agreement as a REMIC will each qualify as a REMIC
under the Code. For federal income tax purposes, the REMIC Regular Certificates
(or, in the case of the Class IO Certificates, the Class IO Components) will be
the "regular interests" in one of such REMICs and generally will be treated as
debt instruments of such REMIC. See "Material Federal Income Tax Consequences--
REMICs" in the Prospectus. Such opinion will be filed with the Commission.
The Certificates will not, and the Class IO Certificates will, be
treated as having been issued with original issue discount for federal income
tax reporting purposes. The prepayment assumption that will be used in
determining the rate of accrual of original issue discount, market discount and
premium, if any, for federal income tax purposes will be based on the assumption
that subsequent to the date of any determination the Mortgage Loans will prepay
at a rate equal to a CPR of 0%, except that it is assumed that the ARD Loans pay
their respective outstanding principal balances on their related Anticipated
Repayment Dates. No representation is made that the Mortgage Loans will prepay
at that rate or at any other rate. See "Material Federal Income Tax
Consequences--REMICs--Taxation of Owners of REMIC Regular Certificates--Original
Issue Discount" in the Prospectus.
If the method for computing original issue discount described in the
Prospectus results in a negative amount for any period with respect to a
Certificateholder (in particular, the holder of a Class IO Certificate), the
amount of original issue discount allocable to such period would be zero and
such Certificateholder will be permitted to offset such negative amount only
against future original issue discount (if any) attributable to such
Certificates. Although the matter is not free from doubt, a holder of a Class IO
Certificate may be permitted to deduct a loss to the extent that his or her
respective remaining basis in such Certificate exceeds the maximum amount of
future payments to which such Certificateholder is entitled, assuming no further
prepayments of the Mortgage Loans. Any such loss might be treated as a capital
loss.
The Internal Revenue Service (the "IRS") has issued regulations (the "OID
Regulations") under Sections 1271 to 1275 of the Code generally addressing the
treatment of debt instruments issued with original issue discount. The OID
Regulations in some circumstances permit the holder of a debt instrument to
recognize original issue discount under a method that differs from that used by
the issuer. Accordingly, it is possible that the holder of an Offered
Certificate may be able to select a method for recognizing original issue
discount that differs from that used by the Trustee in preparing reports to the
Certificateholders and the IRS. Prospective purchasers of Offered Certificates
are advised to consult their tax advisors concerning the tax treatment of such
Certificates.
The OID Regulations provide in general that original issue discount with
respect to debt instruments issued in connection with the same or related
transactions are treated as a single debt instrument for purposes of computing
the accrual of original issue discount with respect to such debt instruments.
This aggregation rule ordinarily is only to be applied when single debt
instruments are issued by a single issuer to a single holder. Although it is not
entirely clear that this aggregation rule applies to REMIC Regular Certificates
and other debt instruments subject to Section 1272(a) (6) of the Code,
information reports or returns sent to holders of the Class IO Certificates and
the IRS with respect to the Class IO Certificates will be based on such
aggregate method. Prospective purchasers of the Class IO Certificates are
advised to consult their own tax advisers about the use of this methodology and
potential consequences of being required to report original issue discount on
the Class IO Certificates.
S-123
<PAGE>
The Offered Certificates will be treated as "real estate assets" within the
meaning of Section 856(c)(4)(A) of the Code. In addition, interest (including
original issue discount) on the Offered Certificates will be interest described
in Section 856(c)(3)(B) of the Code. However, the Offered Certificates will
generally only be considered assets described in Section 7701(a)(19)(C) of the
Code to the extent that the Mortgage Loans are secured by residential property
and, accordingly, investment in the Offered Certificates may not be suitable for
certain thrift institutions. As of the Cut-off Date, 228 Mortgage Loans, or
31.1% are secured by residential property.
Prepayment Premiums and Yield Maintenance Charges actually collected will be
distributed to the holders of the Offered Certificates as described herein. It
is not entirely clear under the Code when the amount of a Prepayment Premium or
Yield Maintenance Charge should be taxed to the holder of an Offered
Certificate, but it is not expected, for federal income tax reporting purposes,
that Prepayment Premiums and Yield Maintenance Charges will be treated as giving
rise to any income to the holders of the Offered Certificates prior to the
Master Servicer's actual receipt of a Prepayment Premium or Yield Maintenance
Charge. It appears that Prepayment Premiums and Yield Maintenance Charges, if
any, will be treated as ordinary income rather than capital gain. However, that
is not entirely clear and Certificateholders should consult their own tax
advisors concerning the treatment of Prepayment Premiums and Yield Maintenance
Charges.
For further information regarding the federal income tax consequences of
investing in the Offered Certificates, see "Material Federal Income Tax
Consequences--REMICs" in the Prospectus.
ERISA CONSIDERATIONS
A fiduciary of any employee benefit plan or other retirement plan or
arrangement, including individual retirement accounts and annuities, Keogh plans
and collective investment funds, separate accounts and general accounts in which
such plans, accounts or arrangements are invested, that is subject to the
Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or
Section 4975 of the Code (each, a "Plan") should carefully review with its legal
advisors whether the purchase or holding of Offered Certificates could give rise
to a transaction that is prohibited or is not otherwise permitted either under
ERISA or Section 4975 of the Code or whether there exists any statutory or
administrative exemption applicable thereto.
Lehman Brothers Inc. ("Lehman Brothers") has received from the DOL an
individual prohibited transaction exemption (the "Exemption"), which generally
exempts from the application of the prohibited transaction provisions of
Sections 406(a) and (b) and 407(a) of ERISA, and the excise taxes imposed on
such prohibited transactions pursuant to Sections 4975(a) and (b) of the Code,
the purchase, sale and holding of mortgage pass-through certificates
underwritten by an Underwriter, as hereinafter defined, provided that certain
conditions set forth in the Exemption are satisfied. For purposes of this
discussion, the term "Underwriter" shall include (a) Lehman Brothers, (b) any
person directly or indirectly, through one or more intermediaries, controlling,
controlled by or under common control with Lehman Brothers, and (c) any member
of the underwriting syndicate or selling group of which Lehman Brothers or a
person described in (b) is a manager or co-manager with respect to the Offered
Certificates.
The Exemption sets forth six general conditions that must be satisfied for a
transaction involving the purchase, sale and holding of Class A-1, Class A-2 and
Class IO Certificates to be eligible for exemptive relief thereunder. First, the
acquisition of the Certificates by a Plan must be on terms that are at least as
favorable to the Plan as they would be in an arm's-length transaction with an
unrelated party. Second, the rights and interests evidenced by such Certificates
must not be subordinated to the rights and interests evidenced by the other
certificates of the same trust. Third, such Certificates at the time of
acquisition by the Plan must be rated in one of the three highest generic rating
categories by Standard & Poor's Rating Services, a division of The McGraw-Hill
Companies, Inc. ("Standard & Poor's"), Duff & Phelps Credit Rating Co. ("DCR"),
Moody's Investor's Service, Inc. ("Moody's") or Fitch IBCA, Inc. ("Fitch").
Fourth, the Trustee cannot be an affiliate of any other member of the
"Restricted Group," which consists of either Underwriter, the Depositor, the
Master Servicer, the Special Servicer, the Trustee, any sub-servicer, and
S-124
<PAGE>
any borrower with respect to Mortgage Loans constituting more than 5.0% of the
aggregate unamortized principal balance of the Mortgage Loans as of the date of
initial issuance of such Certificates. Fifth, the sum of all payments made to
and retained by either Underwriter must represent not more than reasonable
compensation for underwriting such Certificates; the sum of all payments made to
and retained by the Depositor pursuant to the assignment of the Mortgage Loans
to the Trust Fund must represent not more than the fair market value of such
obligations; and the sum of all payments made to and retained by the Master
Servicer, a Special Servicer or any sub-servicer must represent not more than
reasonable compensation for such person's services under the Pooling and
Servicing Agreement and reimbursement of such person's reasonable expenses in
connection therewith. Sixth, the investing Plan must be an accredited investor
as defined in Rule 501(a)(1) of Regulation D of the Securities and Exchange
Commission under the Securities Act.
Because none of the Class A-1, Class A-2 and Class IO Certificates are
subordinated with respect to any other Class of Certificates, the second general
condition set forth above is satisfied with respect to such Certificates. It is
a condition of the issuance of the Class A-1, Class A-2 and Class IO
Certificates that they be rated not lower than "AAA" (or the equivalent) by
; thus, the third general condition set forth above is satisfied with
respect to such Certificates as of the Closing Date. In addition, the fourth
general condition set forth above is also satisfied as of the Closing Date. A
fiduciary of a Plan contemplating purchasing any such Certificate in the
secondary market must make its own determination that, at the time of such
purchase, such Certificate continue to satisfy the third and fourth general
conditions set forth above. A fiduciary of a Plan contemplating the purchase of
any such Certificate must make its own determination that the first, fifth and
sixth general conditions set forth above will be satisfied with respect to such
Certificate as of the date of such purchase.
The Exemption also requires that the Trust Fund meet the following
requirements: (i) the Trust Fund must consist solely of assets of the type that
have been included in other investment pools; (ii) certificates in such other
investment pools must have been rated in one of the three highest categories of
Standard & Poor's, Moody's, DCR or Fitch for at least one year prior to the
Plan's acquisition of such Certificates; and (iii) certificates in such other
investment pools must have been purchased by investors other than Plans for at
least one year prior to any Plan's acquisition of such Certificates. The
Depositor has confirmed to its satisfaction that such requirements have been
satisfied as of the date hereof.
If the general conditions of the Exemption are satisfied, the Exemption may
provide an exemption from the restrictions imposed by Sections 406(a) and 407(a)
of ERISA (as well as the excise taxes imposed by Sections 4975(a) and (b) of the
Code by reason of Sections 4975(c)(1)(A) through (D) of the Code) in connection
with (i) the direct or indirect sale, exchange or transfer of such Certificates
in the initial issuance of Certificates between the Depositor or an Underwriter
and a Plan when the Depositor, an Underwriter, the Trustee, the Master Servicer,
the Special Servicer, a sub-servicer or a borrower is a "Party in Interest," as
defined in the Prospectus, with respect to the investing Plan, (ii) the direct
or indirect acquisition or disposition in the secondary market of Senior
Certificates by a Plan and (iii) the holding of Senior Certificates by a Plan.
However, no exemption is provided from the restrictions of Sections
406(a)(1)(E), 406(a)(2) and 407 of ERISA for the acquisition or holding of such
Certificate on behalf of an "Excluded Plan" by any person who has discretionary
authority or renders investment advice with respect to the assets of such
Excluded Plan. For purposes hereof, an Excluded Plan is a Plan sponsored by any
member of the Restricted Group.
If certain specific conditions of the Exemption are also satisfied, the
Exemption may provide an exemption from the restrictions imposed by Sections
406(b)(1) and (b)(2) of ERISA and the taxes imposed by Section 4975(c)(1)(E) of
the Code in connection with (1) the direct or indirect sale, exchange or
transfer of Senior Certificates in the initial issuance of Certificates between
the Depositor or an Underwriter and a Plan when the person who has discretionary
authority or renders investment advice with respect to the investment of such
Plan's assets in such Certificates is (a) a borrower with respect to 5.0% or
less of the fair market value of the Mortgage Loans or (b) an affiliate of such
a person, (2) the direct or
S-125
<PAGE>
indirect acquisition or disposition in the secondary market of Senior
Certificates by such Plan and (3) the holding of such Certificates by such Plan.
Further, if certain specific conditions of the Exemption are satisfied, the
Exemption may provide an exemption from the restrictions imposed by Sections
406(a), 406(b) and 407(a) of ERISA, and the taxes imposed by Sections 4975(a)
and (b) of the Code by reason of Section 4975(c) of the Code for transactions in
connection with the servicing, management and operation of the Mortgage Pool.
The Depositor expects that the specific conditions of the Exemption required for
this purpose will be satisfied with respect to the Senior Certificates.
The Exemption also may provide an exemption from the restrictions imposed by
Sections 406(a) and 407(a) of ERISA, and the taxes imposed by Sections 4975(a)
and (b) of the Code by reason of Sections 4975(c)(1)(A) through (D) of the Code
if such restrictions are deemed to otherwise apply merely because a person is
deemed to be a Party in Interest with respect to an investing Plan by virtue of
providing services to the Plan (or by virtue of having certain specified
relationships to such a person) solely as a result of the Plan's ownership of
Senior Certificates. A purchaser of any such Certificate should be aware,
however, that even if the conditions specified in one or more exemptions are
satisfied, the scope of relief provided by an exemption may not cover all acts
that may be considered prohibited transactions.
Before purchasing any Senior Certificate, a fiduciary of a Plan should
itself confirm that the specific and general conditions of the Exemption and the
other requirements set forth in the Exemption would be satisfied. In addition to
making its own determination as to the availability of the exemptive relief
provided in the Exemption, the Plan fiduciary should consider the availability
of any other prohibited transaction exemptions. See "ERISA CONSIDERATIONS" in
the Prospectus.
THE CHARACTERISTICS OF THE CLASS B, CLASS C, CLASS D AND CLASS E
CERTIFICATES DO NOT MEET THE REQUIREMENTS OF THE EXEMPTION. ACCORDINGLY,
CERTIFICATES OF THOSE CLASSES MAY NOT BE ACQUIRED BY A PLAN, OTHER THAN AN
INSURANCE COMPANY GENERAL ACCOUNT, WHICH MAY BE ABLE TO RELY ON SECTION III OF
PTE 95-60 (DISCUSSED BELOW).
Section III of Prohibited Transaction Class Exemption 95-60 ("PTE 95-60")
exempts from the application of the prohibited transaction provisions of
Sections 406(a), 406(b) and 407(a) of ERISA and Section 4975 of the Code
transactions in connection with the servicing, management and operation of a
trust (such as the Trust Fund) in which an insurance company general account has
an interest as a result of its acquisition of certificates issued by the trust,
provided that certain conditions are satisfied. If these conditions are met,
insurance company general accounts would be allowed to purchase classes of
Certificates (such as the Class B, Class C, Class D and Class E Certificates)
which do not meet the requirements of the Exemption solely because they (i) are
subordinated to other classes of Certificates in the Trust Fund and/or (ii) have
not received a rating at the time of the acquisition in one of the three highest
rating categories from Standard & Poor's, Moody's, DCR or Fitch. All other
conditions of the Exemption would have to be satisfied in order for PTE 95-60 to
be available. Before purchasing Class B, Class C, Class D or Class E
Certificates, an insurance company general account seeking to rely on Section
III of PTE 95-60 should itself confirm that all applicable conditions and other
requirements have been satisfied.
Insurance company general accounts purchasing any Class of Certificates may
also be able to rely on relief from certain fiduciary provisions of ERISA
provided under Section 401(c) of ERISA. Insurance companies seeking to rely on
such relief should independently determine whether, and the extent to which,
such relief is available.
LEGAL INVESTMENT
Any Offered Certificates rated in the category of "AAA" or "AA" (or the
equivalent) by at least one Rating Agency will constitute "mortgage related
securities" for purposes of the Secondary Mortgage Market Enhancement Act of
1984, as amended ("SMMEA"). All other Offered Certificates (the "Non-SMMEA
Certificates") will not constitute "mortgage related securities" for purposes of
SMMEA. As a result, the appropriate characterization of the Non-SMMEA
Certificates under various legal investment
S-126
<PAGE>
restrictions, and thus the ability of investors subject to these restrictions to
purchase the Non-SMMEA Certificates of any Class, may be subject to significant
interpretative uncertainties. In addition, institutions whose investment
activities are subject to review by federal or state regulatory authorities may
be or may become subject to restrictions on the investment by such institutions
in certain forms of mortgage related securities. Investors should consult their
own legal advisors to determine whether and to what extent the Offered
Certificates constitute legal investments for them. See "Legal Investment" in
the Prospectus.
The Depositor makes no representation as to the ability of particular
investors to purchase the Offered Certificates under applicable legal investment
or other restrictions. All institutions whose investment activities are subject
to legal investment laws and regulations, regulatory capital requirements or
review by regulatory authorities should consult with their own legal advisors in
determining whether and to what extent the Offered Certificates constitute legal
investments for them or are subject to investment, capital or other
restrictions. See "Legal Investment" in the Prospectus.
METHOD OF DISTRIBUTION
Subject to the terms and conditions set forth in the underwriting agreement
(the "Underwriting Agreement") among the Depositor and the Underwriters, the
Depositor has agreed to sell to each Underwriter, and each Underwriter has
agreed to purchase one-half of the respective Certificate Balances of each Class
of Offered Certificates.
In the Underwriting Agreement, the Underwriters have severally agreed to
purchase all of the Offered Certificates if any are purchased. In the event of a
default by either Underwriter, the Underwriting Agreement provides that the
purchase commitment of the non-defaulting Underwriter may be increased. Proceeds
to the Depositor from the sale of the Offered Certificates, before deducting
expenses payable by the Depositor, will be approximately $ , which
includes accrued interest.
Distribution of the Offered Certificates will be made by each Underwriter
from time to time in negotiated transactions or otherwise at varying prices to
be determined at the time of sale. Each Underwriter may effect such transactions
by selling the Offered Certificates to or through dealers, and such dealers may
receive compensation in the form of underwriting discounts, concessions or
commissions from such Underwriter. In connection with the purchase and sale of
the Offered Certificates, the Underwriters may be deemed to have received
compensation from the Depositor in the form of underwriting discounts. Each
Underwriter and any dealers that participate with either Underwriter in the
distribution of the Offered Certificates may be deemed to be underwriters and
any profit on the resale of the Offered Certificates positioned by them may be
deemed to be underwriting discounts and commissions under the Securities Act.
The Underwriters expect to sell a portion of the Offered Certificates to or
through BancAmerica Robertson Stephens.
Purchasers of the Offered Certificates, including dealers, may, depending on
the facts and circumstances of such purchases, be deemed to be "underwriters"
within the meaning of the Securities Act in connection with reoffers and sales
by them of Offered Certificates. Certificateholders should consult with their
legal advisors in this regard prior to any such reoffer or sale.
The Depositor also has been advised by the Underwriters that each of them,
through one or more of its affiliates, currently intends to make a market in the
Offered Certificates; however, neither Underwriter has any obligation to do so,
any market making may be discontinued at any time and there can be no assurance
that an active secondary market for the Offered Certificates will develop. See
"Risk Factors-- Limited Liquidity" herein and in the Prospectus.
This Prospectus and Prospectus Supplements may be used by the Depositor,
First Union Capital Markets, an affiliate of the Depositor, and any other
affiliate of the Depositor when required under the federal securities laws in
connection with offers and sales of Offered Certificates in furtherance of
market-making activities in Offered Certificates. First Union Capital Markets or
any such other affiliate may act as principal or agent in such transactions.
Such sales will be made at prices related to prevailing market prices at the
time of sale or otherwise.
S-127
<PAGE>
The Depositor has agreed to indemnify each Underwriter and each person, if
any, who controls any Underwriter within the meaning of Section 15 of the
Securities Act against, or make contributions to each Underwriter and each such
controlling person with respect to, certain liabilities, including liabilities
under the Securities Act.
LEGAL MATTERS
Certain legal matters will be passed upon for the Depositor by Willkie Farr
& Gallagher, New York, New York, and certain legal matters will be passed upon
for the Underwriters by Sidley & Austin, New York, New York.
RATINGS
It is a condition of their issuance that each of the Class A-1 and Class A-2
Certificates be rated not lower than , that the Class IO Certificates
be rated not lower than , that the Class B Certificates be rated not
lower than , that the Class C Certificates be rated not lower than
, that the Class D Certificates be rated not lower than and
that the Class E Certificates be rated not lower than .
The ratings on the Offered Certificates address the likelihood of timely
receipt by holders thereof of all distributions of interest to which they are
entitled and, except in the case of the Class IO Certificates, distributions of
principal by the Rated Final Distribution Date set forth on the cover page of
this Prospectus Supplement. The ratings take into consideration the credit
quality of the Mortgage Pool, structural and legal aspects associated with the
Offered Certificates, and the extent to which the payment stream from the
Mortgage Pool is adequate to make payments required under the Offered
Certificates. A security rating does not represent any assessment of (i) the
likelihood or frequency of principal prepayments or default interest on the
Mortgage Loans, (ii) the degree to which such prepayments might differ from
those originally anticipated or (iii) whether and to what extent Prepayment
Premiums and Yield Maintenance Charges will be received. Also, a security rating
does not represent any assessment of the yield to maturity that investors may
experience or the possibility that the holders of the Class IO Certificates
might not fully recover their investment in the event of rapid prepayments of
the Mortgage Loans (including both voluntary and involuntary prepayments).
Therefore, such security rating addresses credit risk and not the risk of
prepayment. As described herein, the amounts payable with respect to the Class
IO Certificates consist only of interest. If the entire Mortgage Pool were to
prepay in the initial month, with the result that the holders of the Class IO
Certificates receive only a single month's interest and thus suffer a nearly
complete loss of their investment, all amounts "due" to such Certificateholders
will nevertheless have been paid, and such result is consistent with the ratings
received on the Class IO Certificates. The Class IO Certificates' notional
amount upon which interest is calculated is reduced by the allocation of
Realized Losses and prepayments, whether voluntary or involuntary. The rating
does not address the timing or magnitude of reductions of the notional amounts
of the Class IO Components, but only the obligation to pay interest timely on
the notional amount as reduced from time to time. Accordingly, the ratings of
the Class IO Certificates should be evaluated independently from similar ratings
on other types of securities.
A downgrade, qualification or withdrawal of a rating with respect to the
Enhancement Insurer, a provider of a residual value insurance policy, a Tenant
or a Guarantor may adversely affect the ratings of the Offered Certificates.
There can be no assurance that any rating agency not requested to rate the
Offered Certificates will not nonetheless issue a rating to any or all Classes
thereof and, if so, what such rating or ratings would be. A rating assigned to
any Class of Offered Certificates by a rating agency that has not been requested
by the Depositor to do so may be lower than the rating assigned thereto by any
of the Rating Agencies.
The ratings on the Offered Certificates should be evaluated independently
from similar ratings on other types of securities. A security rating is not a
recommendation to buy, sell or hold securities and may be subject to revision or
withdrawal at any time by the assigning rating agency. See "Risk
Factors--Limited Nature of Ratings" in the Prospectus.
S-128
<PAGE>
INDEX OF PRINCIPAL DEFINITIONS
<TABLE>
<CAPTION>
PAGE
----------------
<S> <C>
30/360 basis.................................................................................... S-37
Accrued Certificate Interest.................................................................... S-102
actual/360 basis................................................................................ S-37
Additional Interest............................................................................. S-38
Additional Rights............................................................................... S-50
Additional Servicing Fee........................................................................ S-89
Additional Servicing Fee Rate................................................................... S-89
Additional Trust Fund Expenses.................................................................. S-15, S-106
Administrative Cost Rate........................................................................ S-53
Advance......................................................................................... S-107
Anticipated Repayment Date...................................................................... S-38
Appraisal Reduction Amount...................................................................... S-108
ARD Loans....................................................................................... S-38
Assumed Final Distribution Date................................................................. S-113
Assumed Scheduled Payment....................................................................... S-21
Available Distribution Amount................................................................... S-17, S-97
Balloon Loans................................................................................... S-11
Balloon Payment................................................................................. S-11
Bank of America Loans........................................................................... S-14, S-37
Bond-Type Leases................................................................................ S-50
Casualty or Condemnation Rights................................................................. S-50
CBE............................................................................................. S-118
Certificate Balance............................................................................. S-3, S-15, S-95
Certificate Owner............................................................................... S-9, S-94
Certificateholders.............................................................................. S-14, S-96
Certificates.................................................................................... S-1, S-8, S-94
Class........................................................................................... S-1, S-8, S-94
Class A Certificates............................................................................ S-8, S-94
Class IO Component.............................................................................. S-15, S-95
Closing Date.................................................................................... S-9, S-82
Code............................................................................................ S-10, S-36
Collection Period............................................................................... S-96
Comparative Financial Status Report............................................................. S-111
Compensating Interest Payment................................................................... S-23, S-88
Compensating Class of Sequential Pay Certificates............................................... S-86
Controlling Class Representative................................................................ S-9, S-86
Corrected Mortgage Loan......................................................................... S-87
CPR.............................................................................................
Credit Lease.................................................................................... S-13
Credit Lease Default............................................................................ S-49
Credit Lease Loans.............................................................................. S-13
Credit Lease Table.............................................................................. S-49
CSSA Loan File.................................................................................. S-109
CSSA Property File.............................................................................. S-109
Custodian....................................................................................... S-82
Cut-off Date.................................................................................... S-1
Cut-off Date Balance............................................................................ S-10
Cut-off Date DSC Ratio.......................................................................... S-52
</TABLE>
S-129
<PAGE>
<TABLE>
<CAPTION>
PAGE
----------------
Cut-off Date LTV Ratio.......................................................................... S-53
<S> <C>
DCR............................................................................................. S-124
Defeasance Collateral........................................................................... S-12
Definitive Offered Certificate.................................................................. S-9, S-94
Delinquent Loan Status Report................................................................... S-110
Depositor....................................................................................... S-1
Determination Date.............................................................................. S-21, S-96
Discount Rate................................................................................... S-104
Distributable Certificate Interest.............................................................. S-20, S-102
Distribution Date............................................................................... S-3, S-17, S-96
Distribution Date Statement..................................................................... S-108
DOL............................................................................................. S-27
Double Net Leases............................................................................... S-50
DSC Ratio....................................................................................... S-51
DTC............................................................................................. S-9, S-94
Enhancement Insurer............................................................................. S-34
ERISA........................................................................................... S-26, S-124
Excess Cash Flow................................................................................ S-38
Excluded Class.................................................................................. S-104
Exemption....................................................................................... S-124
Final Recovery Determination.................................................................... S-109
First Principal Payment Date.................................................................... S-118
First Union Capital Markets..................................................................... S-8
Fitch........................................................................................... S-124
Form 8-K........................................................................................ S-85
FUNB............................................................................................ S-8
FUNB Loans...................................................................................... S-14, S-37
Guarantor....................................................................................... S-33
Historical Loan Modification Report............................................................. S-110
Historical Loss Estimate Report................................................................. S-110
HUD............................................................................................. S-40
Initial Pool Balance............................................................................ S-1, S-10
Interest Reserve Account........................................................................ S-97
Interest Reserve Amount......................................................................... S-98
Interest Reserve Loans.......................................................................... S-97
IRS............................................................................................. S-123
Last Principal Payment Date..................................................................... S-118
Lease Enhancement Policies...................................................................... S-13
Lehman Brothers................................................................................. S-124
Lehman Loans.................................................................................... S-14, S-37
Lehman Seller................................................................................... S-9
Loan Payoff Notification Report................................................................. S-110
Lockout Period.................................................................................. S-39
Loss of Rents................................................................................... S-51
Maintenance Rights.............................................................................. S-50
Majority Subordinate Certificateholder.......................................................... S-114
Master Servicer................................................................................. S-1, S-86
Master Servicing Fee............................................................................ S-88
Master Servicing Fee Rate....................................................................... S-88
Maturity Date LTV Ratio......................................................................... S-53
</TABLE>
S-130
<PAGE>
<TABLE>
<CAPTION>
PAGE
------------------
<S> <C>
Monthly Payments.............................................................................. S-11
Monthly Rental Payments....................................................................... S-13
Moody's....................................................................................... S-124
Mortgage...................................................................................... S-36
Mortgage File................................................................................. S-82
Mortgage Loan Purchase Agreements............................................................. S-82
Mortgage Loan Seller.......................................................................... S-3
Mortgage Loans................................................................................ S-1
Mortgage Note................................................................................. S-36
Mortgage Pool................................................................................. S-1
Mortgage Rates................................................................................ S-11
Mortgaged Property............................................................................ S-1, S-10, S-36
Net Aggregate Prepayment Interest Shortfall................................................... S-23, S-102
Net Cash Flow................................................................................. S-53
Net Mortgage Rate............................................................................. S-16, S-96
NOI Adjustment Worksheet...................................................................... S-111
Nonrecoverable P&I Advance.................................................................... S-107
Non-SMMEA Certificates........................................................................ S-28, S-126
Norwest Bank.................................................................................. S-115
Offered Certificates.......................................................................... S-1, S-8, S-94
OID Regulations............................................................................... S-123
Operating Statement Analysis.................................................................. S-110
P&I Advance................................................................................... S-22, S-106
Participants.................................................................................. S-9, S-94
Pass-Through Rate............................................................................. S-3
Plan.......................................................................................... S-26, S-124
Pooling and Servicing Agreement............................................................... S-15, S-94
Prepayment Interest Excess.................................................................... S-23, S-88
Prepayment Interest Shortfall................................................................. S-23, S-88
Prepayment Premiums........................................................................... S-104
Primary Term.................................................................................. S-48
Principal Recovery Fee........................................................................ S-88
Principal Distribution Amount................................................................. S-20, S-102
Private Certificates.......................................................................... S-8, S-94
Privileged Persons............................................................................ S-112
PTE 95-60..................................................................................... S-126
Purchase Price................................................................................ S-82
Qualified Appraiser........................................................................... S-107
Rated Final Distribution Date................................................................. S-1, S-114
Rating Agencies............................................................................... S-27
Realized Losses............................................................................... S-15, S-106
Reimbursement Rate............................................................................ S-22, S-107
Related Proceeds.............................................................................. S-107
REMIC......................................................................................... S-3, S-26
REMIC Administrator........................................................................... S-115
REMIC Regular Certificates.................................................................... S-8, S-94
REMIC Residual Certificates................................................................... S-8, S-94
Rental Property............................................................................... S-51
REO Extension................................................................................. S-92
REO Mortgage Loan............................................................................. S-103
</TABLE>
S-131
<PAGE>
<TABLE>
<CAPTION>
PAGE
------------------
REO Property.................................................................................. S-24, S-87
<S> <C>
REO Status Report............................................................................. S-110
Required Appraisal Date....................................................................... S-107
Required Appraisal Loan....................................................................... S-107
Required Defeasance Period.................................................................... S-118
Restricted Group.............................................................................. S-124
Restricted Servicer Reports................................................................... S-111
Scenario...................................................................................... S-119
Scheduled Payment............................................................................. S-21, S-103
Section 42 Properties......................................................................... S-40, S-10, S-36
Securities Act................................................................................ S-8
Senior Certificates........................................................................... S-23, S-104
Sequential Pay Certificates................................................................... S-8, S-94
Servicing Fees................................................................................ S-88
Servicing Transfer Event...................................................................... S-87
SMMEA......................................................................................... S-28, S-126
Special Servicer.............................................................................. S-3
Special Servicing Fee......................................................................... S-88
Special Servicing Fee Rate.................................................................... S-88
Specially Serviced Mortgage Loans............................................................. S-87
Specially Serviced Trust Fund Assets.......................................................... S-87
Standard & Poor's............................................................................. S-124
Stated Principal Balance...................................................................... S-16, S-96
Subordinate Certificates...................................................................... S-23, S-104
Table Assumptions............................................................................. S-119
Tax Credits................................................................................... S-39
Tenant........................................................................................ S-13
Tenants....................................................................................... S-13
Triple Net Leases............................................................................. S-50
Trust Fund.................................................................................... S-1, S-15, S-94
Trustee....................................................................................... S-3
Trustee Fee................................................................................... S-115
Underwriters.................................................................................. S-1, S-124
Underwriting Agreement........................................................................ S-127
Unrestricted Servicer Reports................................................................. S-111
Voting Rights................................................................................. S-114
Watch List Report............................................................................. S-110
Weighted Average Net Mortgage Rate............................................................ S-16, S-96
Withheld Amounts.............................................................................. S-98
Yield Maintenance Charges..................................................................... S-103
Yield Tables.................................................................................. S-118
</TABLE>
S-132
<PAGE>
First Union / Lehman Brothers / Bank of America Commercial Mortgage Trust
1998-C2
ITALICS indicate mortgage loans secured by multiple properties.
<TABLE>
<CAPTION>
Control
No. Property Name Address
==========================================================================================================================
<S> <C> <C>
1 IBM Corporate Office Complex Route 100 and Route 138
2 Broadmoor Austin 11501 Burnet Road
3 Fox Valley Mall Route 59 and East New York Ave.
4 Hawthorn Center Milwaukee Ave and Town Line Road
5 First Union Plaza 999 Peachtree Street
- --------------------------------------------------------------------------------------------------------------------------
6 Oakwood Village 185 Route 206
7 Phillips Place 6800 Fairview Road
8 Prince George's Metro Center 6525 Belcrest Road
9 Musselman Portfolio (Roll-Up) Various
- --------------------------------------------------------------------------------------------------------------------------
9a Comfort Suites (Musselman-Newport) 420 Riverboat Row
9b Comfort Suites (Musselman-Louisville) 1850 Resource Way
9c Comfort Inn (Musselman-Brooks) 149 Willabrook Drive
9d Fairfield Inn (Musselman-Shepherdsville) 362 Brenton Way
9e Sleep Inn (Musselman-Louisville) 1850 Priority Way
- --------------------------------------------------------------------------------------------------------------------------
9f Days Inn (Musselman-Glasgow) 105 Days Inn Boulevard
9g Comfort Inn (Musselman-Glasgow) 210 Calvary Drive
9h Days Inn (Musselman-Pikeville) 518 South Mayo Trail
9i Days Inn (Musselman-Ashland) 12700 State Road 180
9j Holiday Inn Express (Musselman-Cave City) SEQ of I-65 and Kentucky Highway 90
- --------------------------------------------------------------------------------------------------------------------------
10 Ohio Edison Office Building 76 South Main Street
11 The Ridge Gardens Apartments 8509 Old Harford Road
12 Holiday Inn Downtown 138 Lafayette Street
13 Peach Tree Apartments 2002-2042 Peach Orchard Drive
- --------------------------------------------------------------------------------------------------------------------------
14 St. Andrews Place 12100 St. Andrews Place
15 Hunt Club 404 Christopher Ave
16 100 West Chestnut St. 100 West Chestnut St.
17 Hickory Ridge Commons Shopping Center SEC of Winchester Road and Ridgeway Road
18 Holly Hall 2111 Holly Hall Drive
- --------------------------------------------------------------------------------------------------------------------------
19 1066 Third Avenue (Royale Retail Condominiums) 1066 Third Avenue
20 Richardson Highlands 401 Sherwood Drive
21 Burke Centre Burke Centre Pkwy. & Rte. 123
22 Stallings Portfolio (Loan Level) Various
- --------------------------------------------------------------------------------------------------------------------------
22a 367 Business & Professional Park (Stallings Portfolio) 12400-12528 Lusher Road
22b Lindbergh Business Center (Stallings Portfolio) 3200-3318 North Highway 67
22c 94 Hemsath Business Center (Stallings Portfolio) 2350 Highway 94 Outer Road South
22d 201 S. Central (Stallings Portfolio) 201 S. Central
22e Medical Arts Building (Stallings Portfolio) 52 Maryland Plaza
- --------------------------------------------------------------------------------------------------------------------------
22f Lindbergh Center (Stallings Portfolio) 3319-3391 North Highway 67
22g Brown I-270 Professional Building (Stallings Portfolio) 5494 Brown Road
22h Jamestown Business Center (Stallings Portfolio) 4401-4459 North Highway 67
22i 94 Heritage Service Station Mall (Stallings Portfolio) 2550-2600 Old Highway 94 South
22j Lindburgh Park (Stallings Portfolio) 2420-2432 North Highway 67
- --------------------------------------------------------------------------------------------------------------------------
22k Marietta Plaza (Stallings Portfolio) 13210-13290 New Halls Ferry Road
23 Brinker Trust 11 Various
23a On The Border - Store #16 1121 I-20 West
23b Macaroni Grill - Store #131 5133 S. Padre Island Dr.
- --------------------------------------------------------------------------------------------------------------------------
23c On The Border - Store #50 4301 S. Broadway
23d On The Border - Store #17 1890 S. Stemmon Frwy.
23e Chili's - Store #332 7621 F.M. 1960
23f Macaroni Grill - Store #37 1670 W. I-20
23g Chili's - Store #520 5025 E. 42nd St.
- --------------------------------------------------------------------------------------------------------------------------
23h Chili's - Store #272 3710 Call Field Dr.
23i Chili's - Store #326 2800 Judson Rd.
24 Brinker Trust 9 6700-6750 LBJ Freeway
25 Quince Orchard I Apartments 805 Quince Orchard Blvd
- --------------------------------------------------------------------------------------------------------------------------
26 Levittown Trace Apartments 3000 Ford Rd.
27 Chester Mall Route 17M
28 Peachtree Walk 1074-1075 Peachtree Walk
29 Statesboro Mall U.S. Highway #80 And Brannen Street
30 Days Inn & Suites Historic Savannah 201 West Bay Street
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial
No. City State Code Groups Balance ($) Balance ($) Balance Pool Balance
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 Somers NY 10589 $ 180,000,000 $ 178,378,814.33 5.13% 5.13%
2 Austin TX 78758 154,000,000 154,000,000.00 4.43 9.56
3 Aurora IL 60504 85,527,649 85,527,649.00 2.46 12.03
4 Vernon Hills IL 60061 77,863,877 77,863,877.00 2.24 14.27
5 Atlanta GA 30309 64,000,000 64,000,000.00 1.84 16.11
- ------------------------------------------------------------------------------------------------------------------------------------
6 Mount Olive NJ 07836 64,000,000 63,766,163.27 1.83 17.94
7 Charlotte NC 28200 25,350,000 25,328,344.54 0.73 18.67
8 Hyattsville MD 20782 24,500,000 24,500,000.00 0.70 19.38
9 Various KY Various 24,000,000 23,892,525.17 0.69 20.06
- ------------------------------------------------------------------------------------------------------------------------------------
9a Newport KY 41071
9b Louisville KY 40299
9c Brooks KY 40109
9d Shepherdsville KY 40165
9e Louisville KY 40299
- ------------------------------------------------------------------------------------------------------------------------------------
9f Glasgow KY 42141
9g Glasgow KY 42141
9h Pikeville KY 41501
9i Ashland KY 41102
9j Cave City KY 42127
- ------------------------------------------------------------------------------------------------------------------------------------
10 Akron OH 44308 22,500,000 22,468,036.24 0.65 20.71
11 Baltimore MD 21234 22,240,000 22,168,011.77 0.64 21.35
12 New York NY 10013 22,000,000 21,840,552.21 0.63 21.98
13 Falls Church VA 22043 21,200,000 21,172,007.68 0.61 22.59
- ------------------------------------------------------------------------------------------------------------------------------------
14 Miramar FL 33023 21,000,000 20,942,733.05 0.60 23.19
15 Gaithersburg MD 20879 20,860,000 20,806,341.65 0.60 23.79
16 Chicago IL 60610 20,000,000 20,000,000.00 0.58 24.36
17 Memphis TN 38115 18,000,000 17,952,727.94 0.52 24.88
18 Houston TX 77054 17,697,000 17,697,000.00 0.51 25.39
- ------------------------------------------------------------------------------------------------------------------------------------
19 New York NY 10021 17,400,000 17,344,007.86 0.50 25.89
20 Marin City CA 94965 16,900,000 16,847,577.42 0.48 26.37
21 Burke VA 22015 16,500,000 16,446,273.67 0.47 26.85
22 St. Louis MO Various 16,300,000 16,277,350.35 0.47 27.31
- ------------------------------------------------------------------------------------------------------------------------------------
22a St. Louis County MO 63138
22b Florissant MO 63033
22c St. Charles MO 63303
22d Clayton MO 63105
22e St. Louis MO 63108
- ------------------------------------------------------------------------------------------------------------------------------------
22f Florissant MO 63033
22g Hazelwood MO 63042
22h Florissant MO 63034
22i St. Charles MO 63303
22j Florissant MO 63033
- ------------------------------------------------------------------------------------------------------------------------------------
22k Florissant MO 63033
23 Various TX Various 15,404,325 15,391,930.50 0.44 27.76
23a Arlington TX 76017
23b Corpus Christie TX 78411
- ------------------------------------------------------------------------------------------------------------------------------------
23c Tyler TX 75703
23d Lewisville TX 75067
23e Houston TX 77070
23f Arlington TX 76017
23g Odessa TX 79762
- ------------------------------------------------------------------------------------------------------------------------------------
23h Witchita Falls TX 78603
23i Longview TX 75605
24 Dallas TX 75240 15,385,864 15,373,841.14 0.44 28.20
25 Gaithersburg MD 20876 15,182,000 15,161,953.80 0.44 28.64
- ------------------------------------------------------------------------------------------------------------------------------------
26 Bristol PA 19007 14,560,000 14,522,217.09 0.42 29.05
27 Chester NY 10918 14,500,000 14,488,711.07 0.42 29.47
28 Atlanta GA 30309 14,500,000 14,452,038.73 0.42 29.89
29 Statesboro GA 30458 14,300,000 14,288,507.76 0.41 30.30
30 Savannah GA 31401 13,800,000 13,770,454.32 0.40 30.69
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Interest Original Remaining
Control Mortgage Administrative Accrual Amortization Interest-Only Interest-Only
No. Rate (%) Cost Rate (%) Method Type Period (Mos.) Period (Mos.)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1 6.8300% 0.0962% 30/360 Fully Amortizing 0 0
2 7.0400 0.0962 Actual/360 Interest-Only then Step Payments: Balloon (ARD) 36 35
3 6.7500 0.0962 Actual/360 Interest-Only (ARD) 108 105
4 6.7500 0.0962 Actual/360 Interest-Only (ARD) 132 129
5 6.7500 0.0962 Actual/360 Interest-Only then Amortizing Balloon 60 60
- -----------------------------------------------------------------------------------------------------------------------------------
6 7.3600 0.0962 Actual/360 Fully Amortizing 0 0
7 6.7900 0.0962 Actual/360 Amortizing Balloon 0 0
8 7.0000 0.0962 Actual/360 Amortizing (ARD) 0 0
9 7.6720 0.1462 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
9a
9b
9c
9d
9e
- -----------------------------------------------------------------------------------------------------------------------------------
9f
9g
9h
9i
9j
- -----------------------------------------------------------------------------------------------------------------------------------
10 7.0800 0.1212 Actual/360 Amortizing (ARD) 0 0
11 7.1100 0.0962 30/360 Amortizing Balloon 0 0
12 7.5500 0.0962 Actual/360 Amortizing Balloon 0 0
13 7.3750 0.0962 Actual/360 Amortizing Balloon 2 0
- -----------------------------------------------------------------------------------------------------------------------------------
14 6.8800 0.0962 Actual/360 Amortizing Balloon 0 0
15 6.8000 0.0962 30/360 Amortizing Balloon 0 0
16 6.8500 0.0962 Actual/360 Amortizing Balloon 0 0
17 7.1000 0.1562 Actual/360 Amortizing (ARD) 0 0
18 8.1400 0.0962 Actual/360 Interest-Only then Amortizing (ARD) 23 13
- -----------------------------------------------------------------------------------------------------------------------------------
19 7.1400 0.0962 Actual/360 Amortizing Balloon 0 0
20 7.3260 0.0962 Actual/360 Amortizing Balloon 0 0
21 7.0800 0.0962 Actual/360 Amortizing Balloon 0 0
22 7.1700 0.1462 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
22a
22b
22c
22d
22e
- -----------------------------------------------------------------------------------------------------------------------------------
22f
22g
22h
22i
22j
- -----------------------------------------------------------------------------------------------------------------------------------
22k
23 7.1560 0.0962 30/360 Step Payments: Balloon(1) 0 0
23a
23b
- -----------------------------------------------------------------------------------------------------------------------------------
23c
23d
23e
23f
23g
- -----------------------------------------------------------------------------------------------------------------------------------
23h
23i
24 7.1560 0.0962 30/360 Step Payments: Balloon(1) 0 0
25 7.3750 0.0962 Actual/360 Amortizing Balloon 2 0
- -----------------------------------------------------------------------------------------------------------------------------------
26 7.1700 0.0962 Actual/360 Amortizing (ARD) 0 0
27 7.2600 0.0962 Actual/360 Amortizing Balloon 0 0
28 7.0000 0.0962 Actual/360 Amortizing Balloon 0 0
29 7.1000 0.0962 Actual/360 Amortizing Balloon 0 0
30 7.3400 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Original Remaining
Term to Term to Original Remaining
Control Maturity Maturity Amortization Amortization Origination Maturity Balloon
No. (Mos.) (Mos.) Term (Mos.) Term (Mos.) Date or ARD Balance ($) Property Type
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 188 185 188 185 1/13/98 10/1/13 - Office
2 156 155 190 189 3/27/98 4/10/11 $ 76,967,566 Office
3 108 102 0 0 11/8/97 11/10/06 85,527,649 Retail - Anchored
4 132 126 0 0 11/8/97 11/10/08 77,863,879 Retail - Anchored
5 180 180 360 360 4/8/98 5/1/13 55,463,657 Office
- -------------------------------------------------------------------------------------------------------------------------------
6 360 355 360 355 11/19/97 12/1/27 6,241,605 Multifamily
7 120 119 360 359 3/2/98 4/1/08 21,988,816 Retail - Unanchored
8 180 180 360 360 4/6/98 5/1/13 18,754,361 Office
9 120 116 300 296 12/31/97 1/1/08 19,586,097 Hotel - Limited Service
- -------------------------------------------------------------------------------------------------------------------------------
9a Hotel - Limited Service
9b Hotel - Limited Service
9c Hotel - Limited Service
9d Hotel - Limited Service
9e Hotel - Limited Service
- -------------------------------------------------------------------------------------------------------------------------------
9f Hotel - Limited Service
9g Hotel - Limited Service
9h Hotel - Limited Service
9i Hotel - Limited Service
9j Hotel - Limited Service
- -------------------------------------------------------------------------------------------------------------------------------
10 84 82 360 358 2/12/98 3/1/05 20,740,744 Office
11 144 140 360 356 12/24/97 1/1/10 18,202,030 Multifamily
12 60 56 240 236 12/19/97 1/1/03 19,267,850 Hotel - Full Service
13 182 178 360 358 12/12/97 3/1/13 16,505,912 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
14 120 117 360 357 1/20/98 2/1/08 18,247,894 Multifamily
15 120 117 360 357 1/12/98 2/1/08 17,815,347 Multifamily
16 120 120 360 360 4/7/98 5/1/08 17,378,274 Multifamily
17 120 117 360 357 1/30/98 2/1/08 15,732,230 Retail - Anchored
18 120 110 360 360 6/16/97 7/1/07 16,353,456 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
19 120 116 360 356 12/2/97 1/1/08 15,226,011 Retail - Anchored
20 84 80 360 356 12/31/97 1/1/05 15,638,434 Multifamily
21 180 176 360 356 12/24/97 1/1/13 12,664,341 Retail - Anchored
22 120 118 360 358 2/4/98 3/1/08 14,284,591 Office
- -------------------------------------------------------------------------------------------------------------------------------
22a Office
22b Office
22c Office
22d Office
22e Office
- -------------------------------------------------------------------------------------------------------------------------------
22f Office
22g Office
22h Office
22i Office
22j Office
- -------------------------------------------------------------------------------------------------------------------------------
22k Office
23 239 234 316 311 11/24/97 11/1/17 6,674,050 CTL
23a CTL
23b CTL
- -------------------------------------------------------------------------------------------------------------------------------
23c CTL
23d CTL
23e CTL
23f CTL
23g CTL
- -------------------------------------------------------------------------------------------------------------------------------
23h CTL
23i CTL
24 239 234 316 311 11/24/97 11/1/17 6,610,082 CTL
25 182 178 360 358 12/12/97 3/1/13 11,820,413 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
26 180 177 360 357 1/22/98 2/1/13 11,217,049 Multifamily
27 120 119 360 359 3/13/98 4/1/08 12,734,965 Retail - Anchored
28 120 116 360 356 12/23/97 1/1/08 12,641,824 Multifamily
29 120 119 360 359 3/5/98 4/1/08 12,507,067 Retail - Anchored
30 120 118 300 298 2/10/98 3/1/08 11,159,915 Hotel - Full Service
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Annual
Control Debt Net Appraised
No. Prepayment Provisions Service ($) Cash Flow ($) DSCR (x) Value ($)
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
1 L(2.33),D(13.21),O(.125) $ 18,741,973 $ 24,796,000 1.32x $ 280,000,000
2 L(2.17),D(10.71),O(.125) 10,992,178 16,441,000 1.50 202,000,000
3 L(2.58),D(6.42) 5,853,298 11,156,114 1.91 138,994,118
4 L(2.58),D(8.42) 5,328,809 10,669,445 2.00 132,421,624
5 L(8),D(6.5),O(.5) 4,981,233 (2) 6,979,849 1.40 105,000,000
- ------------------------------------------------------------------------------------------------------------------------------
6 L(4),YM1%(6),1(19.75),O(.25) or D(Borr) 5,296,536 6,878,459 1.30 80,000,000
7 L(4),D(5.75),O(.25) 1,981,131 2,549,680 1.29 32,210,000
8 L(4),D(10),O(1) 1,955,989 2,458,283 1.26 34,000,000
9 L(5),D(4.5),O(.5) 2,160,620 3,054,386 1.41 35,030,000
- ------------------------------------------------------------------------------------------------------------------------------
9a 8,500,000
9b 4,500,000
9c 3,200,000
9d 3,100,000
9e 3,100,000
- ------------------------------------------------------------------------------------------------------------------------------
9f 2,830,000
9g 2,600,000
9h 2,500,000
9i 2,425,000
9j 2,275,000
- ------------------------------------------------------------------------------------------------------------------------------
10 L(3),D(3.75),O(.25) 1,810,847 2,563,053 1.42 30,300,000
11 L(4),YM1%(5),O(3) 1,795,319 2,467,595 1.37 27,800,000
12 L(4.42),D(.58) 2,134,845 3,256,588 1.53 39,700,000
13 L(6),YM1%(8.167),O(1) 1,757,078 2,268,311 1.29 27,000,000
- ------------------------------------------------------------------------------------------------------------------------------
14 L(4),D(5.67),O(.33) 1,656,303 2,205,945 1.33 27,000,000
15 L(2.25),D(7.25),O(.5) 1,631,899 1,980,890 1.21 26,150,000
16 L(5),3(2),2(2),1(.75),O(.25) 1,572,622 1,907,283 1.21 26,150,000
17 L(4),D(5.5),O(.5) 1,451,589 1,815,016 1.25 22,950,000
18 L(2),YM1%(3),5(1),4(1),3(1),2(1),1(.5),O(.5) 1,579,027 (2) 1,930,113 1.22 22,000,000
- ------------------------------------------------------------------------------------------------------------------------------
19 L(3),YM1%(6.5),O(.5) 1,408,839 1,707,611 1.21 23,300,000
20 L(3),D(3.5),O(.5) 1,393,923 1,698,269 1.22 21,500,000
21 L(5),D(9.5),O(.5) 1,327,954 2,011,744 1.51 24,700,000
22 L(3),YM1%(6.75),O(.25) 1,323,740 1,904,827 1.44 21,795,000
- ------------------------------------------------------------------------------------------------------------------------------
22a 4,350,000
22b 3,850,000
22c 2,400,000
22d 2,350,000
22e 1,780,000
- ------------------------------------------------------------------------------------------------------------------------------
22f 1,500,000
22g 1,350,000
22h 1,120,000
22i 1,100,000
22j 1,075,000
- ------------------------------------------------------------------------------------------------------------------------------
22k 920,000
23 L(2.417),D(17.5) Step Loan 1,124,123 NAP 15,420,000
23a 2,270,000
23b 1,970,000
- ------------------------------------------------------------------------------------------------------------------------------
23c 1,940,000
23d 1,920,000
23e 1,770,000
23f 1,580,000
23g 1,560,000
- ------------------------------------------------------------------------------------------------------------------------------
23h 1,230,000
23i 1,180,000
24 L(2.417),D(17.5) Step Loan 1,133,782 NAP 15,360,000
25 L(6),YM1%(8.167),O(1) 1,258,300 1,584,939 1.26 20,242,000
- ------------------------------------------------------------------------------------------------------------------------------
26 L(3),D(11.5),O(.5) 1,182,432 1,497,351 1.27 18,200,000
27 L(4),D(5.75),O(.25) 1,188,167 1,658,271 1.40 19,400,000
28 L(3),YM1%(2),1(4.5),O(.5) or D(Borr) 1,157,626 1,454,654 1.26 20,000,000
29 L(4),D(5.5),O(.5) 1,153,207 1,628,140 1.41 19,900,000
30 3(3),2(3),1(3),O(1) 1,206,587 1,687,692 1.40 18,500,000
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten
Hospitality Sq. Ft., Loan per
Cut-off Scheduled Average Units Sq. Ft., Units
Control Appraisal Date Maturity Date Daily Year Year Bed, Pad Bed, Pad Occupancy
No. Year LTV (%) LTV (%) Rate ($) Built Renovated or Room or Room ($) Percentage (%)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 1997 63.7% 0.0% 1987 N/A 1,078,069 Sq. Ft. $ 166.97 100.0%
2 1998 76.2 38.1 1991 N/A 1,112,236 Sq. Ft. 138.46 100.0
3 1997 61.5 61.5 1975 1998 566,001 Sq. Ft. 151.11 84.8
4 1997 58.8 58.8 1973 1989 499,282 Sq. Ft. 155.95 88.5
5 1998 61.0 52.8 1987 N/A 615,726 Sq. Ft. 103.94 95.6
- --------------------------------------------------------------------------------------------------------------------------------
6 1997 79.7 7.8 1973-1985 N/A 1,224 Units 52,287.58 97.7
7 1998 78.6 68.3 1997 N/A 129,644 Sq. Ft. 195.54 89.7
8 1998 72.1 55.2 1970 1989 374,061 Sq. Ft. 65.50 93.5
9 1997 68.2 55.9 $50.92 775 Rooms 30,967.74 NAP
- --------------------------------------------------------------------------------------------------------------------------------
9a 1997 80.67 1997 N/A 124 Rooms NAP
9b 1997 65.54 1995 N/A 70 Rooms NAP
9c 1997 51.45 1993 N/A 66 Rooms NAP
9d 1997 57.93 1997 N/A 64 Rooms NAP
9e 1997 47.53 1996 N/A 63 Rooms NAP
- --------------------------------------------------------------------------------------------------------------------------------
9f 1997 46.40 1997 N/A 59 Rooms NAP
9g 1997 44.47 1996 N/A 61 Rooms NAP
9h 1997 44.94 1960s N/A 100 Rooms NAP
9i 1997 43.82 1991 N/A 63 Rooms NAP
9j 1997 45.87 1969 1993 105 Rooms NAP
- --------------------------------------------------------------------------------------------------------------------------------
10 1998 74.2 68.5 1976 N/A 335,736 Sq. Ft. 67.02 94.1
11 1997 79.7 65.5 1964 1997 603 Units 36,882.26 95.6
12 1997 55.0 48.5 142.23 1923 1992 223 Rooms 98,654.71 NAP
13 1997 78.4 61.1 1973 1995 340 Units 62,352.94 93.0
- --------------------------------------------------------------------------------------------------------------------------------
14 1997 77.6 67.6 1997 N/A 332 Units 63,253.01 95.0
15 1997 79.6 68.1 1986 N/A 336 Units 62,083.33 93.6
16 1998 76.5 66.5 1983 N/A 280 Units 71,428.57 97.3
17 1997 78.2 68.6 1991-92 N/A 247,393 Sq. Ft. 72.76 95.8
18 1997 80.4 74.3 1972 N/A 569 Units 31,101.93 88.5
- --------------------------------------------------------------------------------------------------------------------------------
19 1997 74.4 65.4 1987 N/A 40,442 Sq. Ft. 430.25 96.0
20 1997 78.4 72.7 1978 N/A 198 Units 85,353.54 98.0
21 1997 66.6 51.3 1980 1996 212,885 Sq. Ft. 77.51 95.3
22 1997 74.7 65.5 250,820 Sq. Ft. 64.99 96.0
- --------------------------------------------------------------------------------------------------------------------------------
22a 1997 1989-90 N/A 45,998 Sq. Ft. 98.0
22b 1997 1981,1983 N/A 50,700 Sq. Ft. 90.0
22c 1997 1985 N/A 26,266 Sq. Ft. 90.0
22d 1997 1955 N/A 22,491 Sq. Ft. 100.0
22e 1997 1939 N/A 25,909 Sq. Ft. 100.0
- --------------------------------------------------------------------------------------------------------------------------------
22f 1997 1985 N/A 19,619 Sq. Ft. 100.0
22g 1997 1987 N/A 12,158 Sq. Ft. 95.0
22h 1997 1982 N/A 14,325 Sq. Ft. 93.0
22i 1997 1987 N/A 11,740 Sq. Ft. 100.0
22j 1997 1970,1987 N/A 11,364 Sq. Ft. 99.0
- --------------------------------------------------------------------------------------------------------------------------------
22k 1997 1973 N/A 10,250 Sq. Ft. 100.0
23 1997 NAP 43.0 60,385 Sq. Ft. 255.10 100.0
23a 1997 1994 N/A 9,209 Sq. Ft. 100.0
23b 1997 1996 N/A 7,328 Sq. Ft. 100.0
- --------------------------------------------------------------------------------------------------------------------------------
23c 1997 1996 N/A 6,899 Sq. Ft. 100.0
23d 1997 1995 N/A 7,113 Sq. Ft. 100.0
23e 1997 1993 N/A 5,693 Sq. Ft. 100.0
23f 1997 1992 N/A 7,328 Sq. Ft. 100.0
23g 1997 1996 N/A 5,997 Sq. Ft. 100.0
- --------------------------------------------------------------------------------------------------------------------------------
23h 1997 1993 N/A 5,125 Sq. Ft. 100.0
23i 1997 1993 N/A 5,693 Sq. Ft. 100.0
24 1997 NAP 43.0 1980 N/A 197,336 Sq. Ft. 77.97 100.0
25 1997 74.9 58.4 1971-1973 1992 396 Units 38,338.38 95.0
- --------------------------------------------------------------------------------------------------------------------------------
26 1997 79.8 61.6 1965 1994-97 617 Units 23,598.06 93.7
27 1998 74.7 65.6 1989-1990 N/A 192,805 Sq. Ft. 75.21 100.0
28 1997 72.3 63.2 1996 N/A 218 Units 66,513.76 87.2
29 1997 71.8 62.9 1970 N/A 295,987 Sq. Ft. 48.31 99.8
30 1998 74.4 60.3 61.55 1851 1981 253 Rooms 54,545.45 NAP
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Tenant
------------------------------------------------------------------------------
Tenant
Control Rent Roll Underwriting Area Leased Lease
No. Date Reserves ($) per Tenant Name (Sq. Ft.) Exp Date
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1 5/1/98 - IBM 1,078,069 10/31/13
2 5/1/98 - IBM 1,112,236 3/31/11
3 4/3/98 $0.25 Sq. Ft. The Limited 18,765 1/31/06
4 4/3/98 0.25 Sq. Ft. Barnes & Noble 27,399 1/31/06
5 4/1/98 0.20 Sq. Ft. FUNB 114,370 3/31/05
- ------------------------------------------------------------------------------------------------------------------------------------
6 9/18/97 200.00 Unit
7 1/19/98 0.10 Sq. Ft. Consolidated Theatre\Philips Place 30,000 11/14/16
8 3/5/98 0.24 Sq. Ft. HHS 11B-90186 146,931 4/1/00
9 NAP 4% of Gross Revenue Room
- ------------------------------------------------------------------------------------------------------------------------------------
9a NAP 4% of Gross Revenue Room
9b NAP 4% of Gross Revenue Room
9c NAP 4% of Gross Revenue Room
9d NAP 4% of Gross Revenue Room
9e NAP 4% of Gross Revenue Room
- ------------------------------------------------------------------------------------------------------------------------------------
9f NAP 4% of Gross Revenue Room
9g NAP 4% of Gross Revenue Room
9h NAP 4% of Gross Revenue Room
9i NAP 4% of Gross Revenue Room
9j NAP 4% of Gross Revenue Room
- ------------------------------------------------------------------------------------------------------------------------------------
10 1/1/98 0.15 Sq. Ft. Ohio Edison Company 258,082 12/31/06
11 11/1/97 207.00 Unit
12 NAP 4% of Gross Revenue Room
13 9/30/97 275.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
14 12/20/97 175.00 Unit
15 4/2/98 228.00 Unit
16 4/1/98 239.00 Unit
17 12/1/97 0.10 Sq. Ft. Upton's 58,771 10/31/08
18 6/25/97 175.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
19 11/13/97 0.15 Sq. Ft. A&P 16,721 3/31/15
20 11/9/97 284.00 Unit
21 4/9/98 0.33 Sq. Ft. Hechinger Company 60,000 4/30/09
22 10/6/97 0.16 Sq. Ft.
- ------------------------------------------------------------------------------------------------------------------------------------
22a 10/6/97 0.15 Sq. Ft. Christian Home Health-BJC 4,800 2/28/98
22b 10/16/97 0.15 Sq. Ft. Environmental Analysis 7,000 9/30/01
22c 10/6/97 0.15 Sq. Ft. Framing Designs 2,000 1/31/99
22d 10/6/97 0.20 Sq. Ft. Eaker & Henry Law Firm 3,152 6/30/98
22e 10/6/97 0.20 Sq. Ft. Cervantes Insurance - Gateway Insurance 14,145 12/31/00
- ------------------------------------------------------------------------------------------------------------------------------------
22f 10/31/97 0.15 Sq. Ft. Grace & Company 3,000 2/28/99
22g 10/6/97 0.15 Sq. Ft. State of Missouri - Dept of Public Hway 2,000 6/30/98
22h 10/6/97 0.15 Sq. Ft. Tropical World Pet 3,000 7/31/01
22i 10/6/97 0.15 Sq. Ft. Bryant Transmission Center 2,950 12/31/98
22j 10/18/97 0.20 Sq. Ft. Consolidated Mortgage 3,016 11/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
22k 10/16/97 0.20 Sq. Ft. Mary Lucas Market Research 2,980 9/30/98
23 5/1/98 - Sq. Ft.
23a 5/1/98 - Sq. Ft. On The Border 9,209 11/30/17
23b 5/1/98 - Sq. Ft. Macaroni Grill 7,328 11/30/17
- ------------------------------------------------------------------------------------------------------------------------------------
23c 5/1/98 - Sq. Ft. On The Border 6,899 11/30/17
23d 5/1/98 - Sq. Ft. On The Border 7,113 11/30/17
23e 5/1/98 - Sq. Ft. Chili's 5,693 11/30/17
23f 5/1/98 - Sq. Ft. Macaroni Grill 7,328 11/30/17
23g 5/1/98 - Sq. Ft. Chili's 5,997 11/30/17
- ------------------------------------------------------------------------------------------------------------------------------------
23h 5/1/98 - Sq. Ft. Chili's 5,125 11/30/17
23i 5/1/98 - Sq. Ft. Chili's 5,693 11/30/17
24 5/1/98 - Sq. Ft. Highland Oaks I, II, III 197,336 11/30/17
25 10/3/97 226.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
26 8/1/97 250.00 Unit
27 10/31/97 0.15 Sq. Ft. Ames 54,511 NAV
28 11/11/97 150.00 Unit
29 2/27/98 0.19 Sq. Ft. Belk 64,923 7/31/04
30 NAP 4% of Gross Revenue Room
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2nd Largest Tenant 3rd Largest Tenant
--------------------------------------------------------- -------------------------------------------------------------
Tenant Tenant
Control Area Leased Lease Area Leased Lease Control
No. Tenant Name (Sq. Ft.) Exp Date Tenant Name (Sq. Ft.) Exp Date No.
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
1 1
2 2
3 World Footlocker 13,925 12/31/03 Lerner 12,316 1/31/02 3
4 The Limited 17,119 1/31/05 Abercrombie & Fitch 12,220 6/30/06 4
5 Sutherland Asbill 112,003 4/30/00 Heery International 98,029 9/30/07 5
- ------------------------------------------------------------------------------------------------------------------------------------
6 6
7 Restoration Hardware 8,850 9/24/12 Dean and Deluca 7,500 6/24/07 7
8 GSA 11B-30067 43,450 12/30/02 Kaiser Health Plan 38,879 10/30/02 8
9 9
- ------------------------------------------------------------------------------------------------------------------------------------
9a 9a
9b 9b
9c 9c
9d 9d
9e 9e
- ------------------------------------------------------------------------------------------------------------------------------------
9f 9f
9g 9g
9h 9h
9i 9i
9j 9j
- ------------------------------------------------------------------------------------------------------------------------------------
10 Stark & Knoll, L.P.A. 8,399 2/28/01 First Energy Corporation 6,003 12/31/01 10
11 11
12 12
13 13
- ------------------------------------------------------------------------------------------------------------------------------------
14 14
15 15
16 16
17 Sears 35,424 10/31/03 Planet Music/Borders 30,170 10/31/03 17
18 18
- ------------------------------------------------------------------------------------------------------------------------------------
19 Parking Garage 13,021 12/31/11 Citibank 8,681 1/31/13 19
20 20
21 Safeway, Inc. 41,764 4/20/05 CVS Pharmacy 11,168 8/31/00 21
22 22
- ------------------------------------------------------------------------------------------------------------------------------------
22a Mayfair Auto Parts, Inc. 4,000 7/31/01 Century 21 Select 3,400 2/28/99 22a
22b Wamhoff Accounting/Dibo Enterprises 3,500 6/30/01 United Resources Realty 3,450 11/30/98 22b
22c Dawnmark Supply, Inc. 2,000 5/31/98 CSL Tax Consulting 1,750 5/31/99 22c
22d Charles Smith 2,290 3/31/00 Home Care Services 2,033 8/31/98 22d
22e Maryland Fitness 5,444 12/31/99 Clayton Business School 3,025 4/30/98 22e
- ------------------------------------------------------------------------------------------------------------------------------------
22f North County National Educational Assoc. 2,000 6/30/01 Applied Power 2,000 5/31/99 22f
22g Robert Marklin DDS 1,078 10/31/97 ACS Guard Service 1,000 2/28/98 22g
22h North County Pet Supply 1,800 4/30/00 Timber & Stone, Inc. - Forgotten Song 1,700 3/31/99 22h
22i Abney's Automotive, Inc. 2,475 6/30/98 Detail Etc. 2,475 10/31/98 22i
22j H & R Block 1,500 4/30/98 Krause Food Service, Inc. 1,500 9/30/99 22j
- ------------------------------------------------------------------------------------------------------------------------------------
22k North County Dental Specialists 2,400 5/31/99 Edward Jones 1,120 8/14/02 22k
23 23
23a 23a
23b 23b
- ------------------------------------------------------------------------------------------------------------------------------------
23c 23c
23d 23d
23e 23e
23f 23f
23g 23g
- ------------------------------------------------------------------------------------------------------------------------------------
23h 23h
23i 23i
24 24
25 25
- ------------------------------------------------------------------------------------------------------------------------------------
26 26
27 ShopRite 54,440 NAV Chester Six Plex, Inc. 13,281 NAV 27
28 28
29 J.C. Penney 38,720 4/30/00 BiLo, Inc. 38,595 6/30/13 29
30 30
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
Control
No. Property Name Address
==========================================================================================================================
<S> <C> <C>
31 Shaws Sainsbury 50 Boston Post Road
32 Sandy Mall 9405-9560 S. 700 East St. & 830 E. 9400 South St.
33 Consolidated Cap Care Properties (8) Various
33a Wynne Skilled 400 Arkansas Street
- --------------------------------------------------------------------------------------------------------------------------
33b Marianna Highway 79 West
33c Forrest City Intermediate - 500 Kittle Road 500 Kittle Road
33d DeWitt 1325 Liberty Drive
33e Stuttgart West 20th Street
33f Forrest City Skilled - 603 Kittle Road 603 Kittle Road
- --------------------------------------------------------------------------------------------------------------------------
33g Helena Skilled - 116 November 116 November Drive
33h Helena Intermediate - 111 Hospital 111 Hospital Drive
34 Stone Creek / Waters Landing 12840 Locbury Circle
35 Temple City Square 8847 Las Tunas Drive and 8913 Elm Avenue
- --------------------------------------------------------------------------------------------------------------------------
36 Hechinger Commons Shopping Center 3101-3231 Duke Street
37 Steeplechase / Largo 150 Steeplechase Way
38 Sandy Springs Plaza 6221 - 6351 Roswell Road NE
39 The Plantation at Lafayette 211 Liberty Ave.
40 North Atherton Place North Atherton & Vairo Road
- --------------------------------------------------------------------------------------------------------------------------
41 Woodholme Medical Building 1838 Greene Tree Road
42 GTE Stemmons Crossing 9999 West Technology Boulevard
43 Highland Pinetree Apartments 1501 S. Highland Avenue
44 Westmont Business Park (Roll-up) Various
- --------------------------------------------------------------------------------------------------------------------------
44a SWC of Burr Oak Drive and Chestnut Avenue (Westmont) SWC of Burr Oak Drive and Chestnut Avenue
44b 2-44 Plaza Drive (Westmont) 22-44 Plaza Drive
44c 825 North Cass Avenue (Westmont) 825 North Cass Avenue
44d 640-650 Blackhawk Drive (Westmont) 640-650 Blackhawk Drive
- --------------------------------------------------------------------------------------------------------------------------
45 Wyndham Garden Hotel 3350 Avenue of the Arts
46 Hulen Bend Center 6080 South Hulen Road
47 Cineplex Odeon Movie Theater 6150 East Avenue
48 Rose Hill II 4910-4926 Knickerbocker Drive
49 Golf Glen Mart Plaza 9000-9196 Golf Road
- --------------------------------------------------------------------------------------------------------------------------
50 Clearwater Crossing Shopping Center NWC 82nd Street/Dean Road
51 Rivercrest Village Apartments 7928 La Riviera Drive
52 Super K-Mart Center 111 Constitution Drive
53 Quince Orchard II Apartments 805 Quince Orchard Blvd
54 Market at Wolfcreek Germantown Parkway Highway 64 on Stage Road
- --------------------------------------------------------------------------------------------------------------------------
55 Brinker Trust 5 Various
55a Macaroni Grill - Store #106 780 Cobb Place Blvd.
55b On The Border - Store #24 8555 S. Quebec St.
55c Chili's - Store #364 3030 S. Glenstone
- --------------------------------------------------------------------------------------------------------------------------
55d Chili's - Store #523 301 Constitution
55e Chili's - Store #256 2107 N. Veterans Pkwy.
55f Chili's - Store #421 3580 Broadway
56 Brinker Trust 7 Various
- --------------------------------------------------------------------------------------------------------------------------
56a Macaroni Grill - Store #53 39300 Seven Mile Rd.
56b Macaroni Grill - Store #84 2572 Citiplace Court
56c On The Border - Store #40 8101 Giacosa Dr.
56d Chili's - Store #500 2319 Iowa St.
56e Chili's - Store #404 9610 Hwy 5
- --------------------------------------------------------------------------------------------------------------------------
56f Chili's - Store #314 1388 Kildaire Farm Rd.
57 Northwind 1680 Sky Mountain Road
58 Brinker Trust 2 Various
- --------------------------------------------------------------------------------------------------------------------------
58a Macaroni Grill - Store #50 11100 West Markham
58b Macaroni Grill - Store #115 740 SE Maynard Rd.
58c Chili's - Store #470 1706 E. Cheyenne Mountain Rd.
58d Chili's - Store #302 3795 E. Main St.
58e Chili's - Store # 309 9009 E. 71st Street
- --------------------------------------------------------------------------------------------------------------------------
58f Chili's - Store #329 1161 Old Salem Rd.
59 Concorde Centre II Office Building 2999 NE 191st Street
60 Sundance West Apartments 3245 Clover Way
61 Old Farm 3751 Appian Way
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial
No. City State Code Groups Balance ($) Balance ($) Balance Pool Balance
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
31 Orange CT 44601 $ 13,812,944 $ 13,760,326.29 0.40% 31.09%
32 Sandy UT 84093 13,750,000 13,738,706.98 0.40 31.48
33 Various AR Various 13,500,000 13,404,516.00 0.39 31.87
33a Wynne AR 72396
- ------------------------------------------------------------------------------------------------------------------------------------
33b Marianna AR 72342
33c Forrest City AR 72335
33d Dewitt AR 72042
33e Stuttggart AR 72160
33f Forrest City AR 72335
- ------------------------------------------------------------------------------------------------------------------------------------
33g Helena AR 72342
33h Helena AR 72342
34 Germantown MD 20866 13,400,000 13,365,532.22 0.38 32.25
35 Temple City CA 91780 13,280,000 13,269,824.24 0.38 32.64
- ------------------------------------------------------------------------------------------------------------------------------------
36 Alexandria VA 22314 13,250,000 13,230,217.88 0.38 33.02
37 Largo MD 20772 13,240,000 13,205,943.83 0.38 33.40
38 Sandy Springs (Atlanta) GA 30328 13,200,000 13,189,312.81 0.38 33.78
39 Lafayette LA 70508 12,750,000 12,750,000.00 0.37 34.14
40 Patton Township PA 16802 12,500,000 12,469,243.47 0.36 34.50
- ------------------------------------------------------------------------------------------------------------------------------------
41 Baltimore MD 21208 12,500,000 12,443,167.58 0.36 34.86
42 Dallas TX 77071 12,400,000 12,400,000.00 0.36 35.22
43 Fullerton CA 92632 12,400,000 12,389,735.13 0.36 35.57
44 Westmont IL 60559 12,250,000 12,218,749.98 0.35 35.93
- ------------------------------------------------------------------------------------------------------------------------------------
44a Westmont IL 60559
44b Westmont IL 60559
44c Westmont IL 60559
44d Westmont IL 60559
- ------------------------------------------------------------------------------------------------------------------------------------
45 Costa Mesa CA 92626 12,250,000 12,204,210.32 0.35 36.28
46 Fort Worth TX 76132 12,200,000 12,168,124.07 0.35 36.63
47 Hodgkins IL 60525 12,150,000 12,124,123.68 0.35 36.98
48 Alexandria VA 22310 12,000,000 11,980,750.16 0.34 37.32
49 Niles IL 60714 11,900,000 11,863,983.65 0.34 37.66
- ------------------------------------------------------------------------------------------------------------------------------------
50 Indianapolis IN 46250 11,600,000 11,569,846.73 0.33 37.99
51 Sacramanto CA 95826 11,600,000 11,564,174.06 0.33 38.33
52 West Monroe LA 71292 11,300,000 11,283,800.93 0.32 38.65
53 Gaithersburg MD 20878 10,994,000 10,979,483.59 0.32 38.97
54 Memphis TN 38101 Group A 11,000,000 10,947,916.37 0.32 39.28
- ------------------------------------------------------------------------------------------------------------------------------------
55 Various GA Various 10,680,387 10,671,795.87 0.31 39.59
55a Kennesaw GA 30144
55b Highlands Ranch CO 80126
55c Springfield MO 65804
- ------------------------------------------------------------------------------------------------------------------------------------
55d W. Monroe LA 71292
55e Bloomington IL 61704
55f Edmond OK 73013
56 Various MI Various 10,593,697 10,585,153.28 0.30 39.89
- ------------------------------------------------------------------------------------------------------------------------------------
56a Livonia MI 48152
56b Baton Rouge LA 70808
56c Memphis TN 38133
56d Lawrence KS 66046
56e Douglasville GA 30135
- ------------------------------------------------------------------------------------------------------------------------------------
56f Cary NC 27511
57 Reno NV 89503 10,600,000 10,585,106.73 0.30 40.20
58 Various AR Various 10,521,645 10,513,286.94 0.30 40.50
- ------------------------------------------------------------------------------------------------------------------------------------
58a Little Rock AR 72211
58b Cary NC 27511
58c Colorado Springs CO 80906
58d St. Charles IL 60174
58e Tulsa OK 74133
- ------------------------------------------------------------------------------------------------------------------------------------
58f Conyers GA 30207
59 Aventura FL 33180 10,500,000 10,500,000.00 0.30 40.80
60 Reno NV 89509 10,125,000 10,092,322.04 0.29 41.09
61 Lexington KY 40517 10,000,000 9,968,198.82 0.29 41.38
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Interest Original Remaining
Control Mortgage Administrative Accrual Amortization Interest-Only Interest-Only
No. Rate (%) Cost Rate (%) Method Type Period (Mos.) Period (Mos.)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
31 7.1250% 0.0962% 30/360 Step Payments: Fully Amortizing(1) 0 0
32 6.9900 0.0962 Actual/360 Amortizing Balloon 0 0
33 7.7500 0.0962 Actual/360 Fully Amortizing 0 0
33a
- -----------------------------------------------------------------------------------------------------------------------------------
33b
33c
33d
33e
33f
- -----------------------------------------------------------------------------------------------------------------------------------
33g
33h
34 6.8000 0.0962 30/360 Amortizing Balloon 0 0
35 7.3400 0.1462 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
36 6.8750 0.0962 Actual/360 Amortizing Balloon 0 0
37 6.8000 0.0962 30/360 Amortizing Balloon 0 0
38 7.0625 0.0962 Actual/360 Amortizing Balloon 0 0
39 7.5400 0.0962 Actual/360 Amortizing Balloon 0 0
40 7.0400 0.1462 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
41 7.6000 0.0962 Actual/360 Amortizing Balloon 0 0
42 7.1300 0.0962 Actual/360 Amortizing Balloon 0 0
43 6.9500 0.1462 Actual/360 Amortizing (ARD) 0 0
44 7.2700 0.1462 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
44a
44b
44c
44d
- -----------------------------------------------------------------------------------------------------------------------------------
45 7.3400 0.0962 Actual/360 Amortizing Balloon 0 0
46 7.1300 0.0962 Actual/360 Amortizing (ARD) 0 0
47 7.9900 0.0962 30/360 Fully Amortizing 0 0
48 7.1250 0.0962 30/360 Amortizing Balloon 0 0
49 7.4500 0.0962 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
50 7.1600 0.1562 Actual/360 Amortizing (ARD) 0 0
51 7.3480 0.0962 Actual/360 Amortizing Balloon 0 0
52 8.3400 0.0962 30/360 Fully Amortizing 0 0
53 7.3750 0.0962 Actual/360 Amortizing Balloon 2 0
54 7.6825 0.1562 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
55 7.1560 0.0962 30/360 Step Payments: Balloon(1) 0 0
55a
55b
55c
- -----------------------------------------------------------------------------------------------------------------------------------
55d
55e
55f
56 7.1560 0.0962 30/360 Step Payments: Balloon(1) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
56a
56b
56c
56d
56e
- -----------------------------------------------------------------------------------------------------------------------------------
56f
57 7.1250 0.0962 Actual/360 Amortizing Balloon 0 0
58 7.1560 0.0962 30/360 Step Payments: Balloon(1) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
58a
58b
58c
58d
58e
- -----------------------------------------------------------------------------------------------------------------------------------
58f
59 7.3300 0.1212 Actual/360 Amortizing Balloon 0 0
60 7.1250 0.0962 Actual/360 Amortizing Balloon 0 0
61 7.2000 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Original Remaining
Term to Term to Original Remaining
Control Maturity Maturity Amortization Amortization Origination Maturity Balloon
No. (Mos.) (Mos.) Term (Mos.) Term (Mos.) Date or ARD Balance ($) Property Type
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
31 301 297 301 297 12/12/97 2/1/23 - CTL
32 84 83 360 359 3/17/98 4/1/05 $ 12,654,243 Retail - Anchored
33 240 236 240 236 12/5/97 1/1/18 534,562 Health Care - Skilled Nursing
33a Health Care - Skilled Nursing
- -------------------------------------------------------------------------------------------------------------------------------
33b Health Care - Skilled Nursing
33c Health Care - Skilled Nursing
33d Health Care - Skilled Nursing
33e Health Care - Skilled Nursing
33f Health Care - Skilled Nursing
- -------------------------------------------------------------------------------------------------------------------------------
33g Health Care - Skilled Nursing
33h Health Care - Skilled Nursing
34 120 117 360 357 1/12/98 2/1/08 11,444,184 Multifamily
35 120 119 360 359 2/24/98 4/1/08 11,687,500 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
36 156 154 360 358 2/26/98 3/1/11 10,718,849 Retail - Anchored
37 120 117 360 357 1/12/98 2/1/08 11,307,537 Multifamily
38 120 119 360 359 3/3/98 4/1/08 11,533,594 Retail - Unanchored
39 114 114 360 360 4/8/98 11/1/07 11,384,253 Multifamily
40 300 298 300 298 2/2/98 3/1/23 - Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
41 120 115 324 319 11/6/97 12/1/07 10,589,019 Office
42 120 120 360 360 4/6/98 5/1/08 10,855,112 Office
43 120 119 360 359 3/11/98 4/1/08 10,802,294 Multifamily
44 84 81 360 357 1/30/98 2/1/05 11,323,991 Industrial
- -------------------------------------------------------------------------------------------------------------------------------
44a Industrial
44b Industrial
44c Industrial
44d Industrial
- -------------------------------------------------------------------------------------------------------------------------------
45 120 117 300 297 1/23/98 2/1/08 9,896,587 Hotel - Full Service
46 120 117 360 357 12/31/97 2/1/08 10,671,302 Retail - Anchored
47 299 297 299 297 2/12/98 2/1/23 - Retail - Anchored
48 120 118 360 358 2/9/98 3/1/08 10,327,564 Multifamily
49 84 80 360 356 12/31/97 1/1/05 11,034,075 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
50 180 177 360 357 1/29/98 2/1/13 8,932,661 Retail - Anchored
51 120 116 360 356 12/31/97 1/1/08 10,205,195 Multifamily
52 255 254 255 254 3/13/98 7/1/19 - CTL
53 182 178 360 358 12/12/97 3/1/13 8,559,715 Multifamily
54 180 173 360 353 9/25/97 10/1/12 8,637,733 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
55 239 234 316 311 11/24/97 11/1/17 4,627,057 CTL
55a CTL
55b CTL
55c CTL
- -------------------------------------------------------------------------------------------------------------------------------
55d CTL
55e CTL
55f CTL
56 239 234 316 311 11/24/97 11/1/17 4,592,941 CTL
- -------------------------------------------------------------------------------------------------------------------------------
56a CTL
56b CTL
56c CTL
56d CTL
56e CTL
- -------------------------------------------------------------------------------------------------------------------------------
56f CTL
57 120 118 360 358 2/3/98 3/1/08 9,278,428 Multifamily
58 239 234 316 311 11/24/97 11/1/17 4,541,766 CTL
- -------------------------------------------------------------------------------------------------------------------------------
58a CTL
58b CTL
58c CTL
58d CTL
58e CTL
- -------------------------------------------------------------------------------------------------------------------------------
58f CTL
59 120 120 360 360 4/2/98 5/1/08 9,239,656 Office
60 120 116 360 356 12/31/97 1/1/08 8,856,500 Multifamily
61 120 116 360 356 12/31/97 1/1/08 8,764,220 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Annual
Control Debt Net Appraised
No. Prepayment Provisions Service ($) Cash Flow ($) DSCR (x) Value ($)
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
31 L(8),YM1%(17.083) Step Loan $ 1,144,048 NAP $ 13,900,000
32 L(4),D(2.5),O(.5) $ 1,096,641 1,415,627 1.29 19,000,000
33 L(7),D(8),O(5) 1,329,937 2,664,351 2.00 24,200,000
33a 4,000,000
- ------------------------------------------------------------------------------------------------------------------------------
33b 3,600,000
33c 3,400,000
33d 3,400,000
33e 2,900,000
33f 2,500,000
- ------------------------------------------------------------------------------------------------------------------------------
33g 2,200,000
33h 2,200,000
34 L(2.25),D(7.25),O(.5) 1,048,296 1,334,487 1.27 16,750,000
35 L(4),D(5.5),O(.5) 1,096,861 1,412,378 1.29 16,600,000
- ------------------------------------------------------------------------------------------------------------------------------
36 L(4),D(8.75),O(.25) 1,044,517 1,498,745 1.43 18,400,000
37 L(2.25),D(7.25),O(.5) 1,035,779 1,351,098 1.30 16,550,000
38 L(4),YM1%(5.5),O(.5) or D(Borr) 1,060,496 1,381,687 1.30 16,500,000
39 L(4),YM1%(5),O(1) 1,073,992 1,295,307 1.21 17,000,000
40 L(10),D(14.75),O(.25) 1,063,999 1,508,837 1.42 16,600,000
- ------------------------------------------------------------------------------------------------------------------------------
41 L(3),YM1%(6.5),O(.5) 1,091,091 1,529,884 1.40 17,400,000
42 L(3),D(6.75),O(.25) 1,002,995 1,269,695 1.27 17,400,000
43 L(4),YM1%(5.75),O(.25) 984,978 1,312,329 1.33 15,850,000
44 L(4),D(2.75),O(.25) 1,004,794 1,315,353 1.31 16,830,000
- ------------------------------------------------------------------------------------------------------------------------------
44a 5,800,000
44b 4,200,000
44c 3,830,000
44d 3,000,000
- ------------------------------------------------------------------------------------------------------------------------------
45 L(5),5(1),4(1),3(1),2(1),1(.75),O(.25) or D(Borr) 1,071,065 1,500,900 1.40 21,500,000
46 L(4),D(5.5),O(.5) 986,818 1,192,359 1.21 16,250,000
47 L(12),D(12.67),O(.25) 1,125,528 1,406,925 1.25 16,300,000
48 L(2.167),YM1%(7.33),O(.5) 970,155 1,218,671 1.26 15,000,000
49 L(4),YM1%(2.5),O(.5) or D(Borr) 993,594 1,194,532 1.20 15,100,000
- ------------------------------------------------------------------------------------------------------------------------------
50 L(7),D(7.5),O(.5) 941,107 1,232,514 1.31 14,700,000
51 L(4),D(5.5),O(.5) 958,860 1,184,460 1.24 14,500,000
52 L(8),D(13.25) 1,136,809 1,156,473 NAP 12,100,000
53 L(6)YM1%(8.167)O(1) 911,194 1,136,693 1.25 14,658,000
54 L(8),D(6.5),O(.5) 940,805 1,351,972 1.44 15,345,000
- ------------------------------------------------------------------------------------------------------------------------------
55 L(2.417),D(17.5) Step Loan 787,266 NAP 10,700,000
55a 2,960,000
55b 1,970,000
55c 1,580,000
- ------------------------------------------------------------------------------------------------------------------------------
55d 1,480,000
55e 1,430,000
55f 1,280,000
56 L(2.417),D(17.5) Step Loan 780,897 NAP 10,610,000
- ------------------------------------------------------------------------------------------------------------------------------
56a 2,460,000
56b 1,970,000
56c 1,970,000
56d 1,450,000
56e 1,380,000
- ------------------------------------------------------------------------------------------------------------------------------
56f 1,380,000
57 L(5),D(5) 856,970 1,087,660 1.27 13,275,000
58 L(2.417),D(17.5) Step Loan 767,712 NAP 10,520,000
- ------------------------------------------------------------------------------------------------------------------------------
58a 2,120,000
58b 1,980,000
58c 1,880,000
58d 1,580,000
58e 1,580,000
- ------------------------------------------------------------------------------------------------------------------------------
58f 1,380,000
59 L(4),D(5.75),O(.25) 866,390 1,129,274 1.30 14,300,000
60 L(4),D(5.83),O(.17) 818,568 1,284,903 1.57 13,500,000
61 L(4),D(5.75),O(.25) 814,546 1,066,190 1.31 12,500,000
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten
Hospitality Sq. Ft., Loan per
Cut-off Scheduled Average Units Sq. Ft., Units
Control Appraisal Date Maturity Date Daily Year Year Bed, Pad Bed, Pad Occupancy
No. Year LTV (%) LTV (%) Rate ($) Built Renovated or Room or Room ($) Percentage (%)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31 1997 NAP 0.0% 1997 N/A 65,366 Sq. Ft. $ 211.32 100.0%
32 1997 72.3% 66.6 1965-1992 N/A 235,295 Sq. Ft. 58.44 93.0
33 1997 55.4 2.2 713 Beds 18,934.08 93.7
33a 1997 1969 1980 110 Beds 87.3
- --------------------------------------------------------------------------------------------------------------------------------
33b 1997 1961 1993 95 Beds 91.6
33c 1997 1957 1986 116 Beds 98.3
33d 1997 1968 N/A 80 Beds 98.8
33e 1997 1965 N/A 74 Beds 98.7
33f 1997 1970 N/A 82 Beds 100.0
- --------------------------------------------------------------------------------------------------------------------------------
33g 1997 1963 1975 80 Beds 76.8
33h 1997 1962 N/A 76 Beds 97.4
34 1997 79.8 68.3 1987 N/A 240 Units 55,833.33 94.8
35 1997 79.9 70.4 1990 N/A 105,186 Sq. Ft. 126.25 83.9
- --------------------------------------------------------------------------------------------------------------------------------
36 1997 71.9 58.3 1989 N/A 146,133 Sq. Ft. 90.67 97.6
37 1997 79.8 68.3 1987 N/A 240 Units 55,166.67 98.0
38 1998 79.9 69.9 1958 1987 125,068 Sq. Ft. 105.54 94.2
39 1997 75.0 67.0 1996 1997 222 Units 57,432.43 92.0
40 1997 75.1 0.0 1991 N/A 241,495 Sq. Ft. 51.76 100.0
- --------------------------------------------------------------------------------------------------------------------------------
41 1997 71.5 60.9 1996 N/A 127,158 Sq. Ft. 98.30 92.7
42 1998 71.3 62.4 1983,1989 N/A 153,102 Sq. Ft. 80.99 100.0
43 1998 78.2 68.2 1975 1995,1997 320 Units 38,750.00 95.7
44 1997 72.6 67.3 315,513 Sq. Ft. 38.83 94.4
- --------------------------------------------------------------------------------------------------------------------------------
44a 1997 1974 N/A 101,638 Sq. Ft. 97.0
44b 1997 1973 N/A 92,500 Sq. Ft. 92.3
44c 1997 1978 N/A 59,751 Sq. Ft. 88.4
44d 1997 1980 N/A 61,624 Sq. Ft. 100.0
- --------------------------------------------------------------------------------------------------------------------------------
45 1997 56.8 46.0 $73.83 1987 N/A 238 Rooms 51,470.59 NAP
46 1997 74.9 65.7 1987 N/A 170,058 Sq. Ft. 71.74 72.7
47 1997 74.4 0.0 1997 N/A 48,217 Sq. Ft. 251.99 100.0
48 1998 79.9 68.9 1964 1987 264 Units 45,454.55 95.6
49 1997 78.6 73.1 1971 N/A 232,790 Sq. Ft. 51.12 97.0
- --------------------------------------------------------------------------------------------------------------------------------
50 1997 78.7 60.8 1991-93 N/A 124,716 Sq. Ft. 93.01 100.0
51 1997 79.8 70.4 1976 N/A 328 Units 35,365.85 92.0
52 1998 NAP 0.0 1994 N/A 167,318 Sq. Ft. 67.54 100.0
53 1997 74.9 58.4 1973 1989 288 Units 38,173.61 95.0
54 1997 71.4 56.3 1997 N/A 126,779 Sq. Ft. 86.77 100.0
- --------------------------------------------------------------------------------------------------------------------------------
55 1997 NAP 43.0 36,793 Sq. Ft. 290.28 100.0
55a 1997 1996 N/A 7,342 Sq. Ft. 100.0
55b 1997 1995 N/A 6,507 Sq. Ft. 100.0
55c 1997 1994 N/A 5,693 Sq. Ft. 100.0
- --------------------------------------------------------------------------------------------------------------------------------
55d 1997 1996 N/A 5,997 Sq. Ft. 100.0
55e 1997 1991 N/A 5,257 Sq. Ft. 100.0
55f 1997 1995 N/A 5,997 Sq. Ft. 100.0
56 1997 NAP 43.0 39,896 Sq. Ft. 265.53 100.0
- --------------------------------------------------------------------------------------------------------------------------------
56a 1997 1994 N/A 7,328 Sq. Ft. 100.0
56b 1997 1995 N/A 7,281 Sq. Ft. 100.0
56c 1997 1997 N/A 7,904 Sq. Ft. 100.0
56d 1997 1996 N/A 5,997 Sq. Ft. 100.0
56e 1997 1995 N/A 5,693 Sq. Ft. 100.0
- --------------------------------------------------------------------------------------------------------------------------------
56f 1997 1993 N/A 5,693 Sq. Ft. 100.0
57 1997 79.7 69.9 1997 N/A 185 Units 57,297.30 96.0
58 1997 NAP 43.0 37,746 Sq. Ft. 278.75 100.0
- --------------------------------------------------------------------------------------------------------------------------------
58a 1997 1993 N/A 7,328 Sq. Ft. 100.0
58b 1997 1996 N/A 7,342 Sq. Ft. 100.0
58c 1997 1996 N/A 5,997 Sq. Ft. 100.0
58d 1997 1993 N/A 5,693 Sq. Ft. 100.0
58e 1997 1992 N/A 5,693 Sq. Ft. 100.0
- --------------------------------------------------------------------------------------------------------------------------------
58f 1997 1993 N/A 5,693 Sq. Ft. 100.0
59 1998 73.4 64.6 1987 N/A 105,152 Sq. Ft. 99.86 100.0
60 1997 74.8 65.6 1974 1997 350 Units 28,928.57 96.0
61 1997 79.8 70.1 1985 N/A 330 Units 30,303.03 97.6
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Tenant
------------------------------------------------------------------------------
Tenant
Control Rent Roll Underwriting Area Leased Lease
No. Date Reserves ($) per Tenant Name (Sq. Ft.) Exp Date
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
31 5/1/98 $0.10 Sq. Ft. Shaw's Supermarket 65,366 2/28/23
32 2/1/98 0.24 Sq. Ft. Cinemark 24,310 11/30/08
33 11/10/97 354.13 Bed
33a 11/10/97 219.99 Bed
- ------------------------------------------------------------------------------------------------------------------------------------
33b 11/10/97 212.13 Bed
33c 11/10/97 397.35 Bed
33d 11/10/97 517.44 Bed
33e 11/10/97 307.52 Bed
33f 11/10/97 370.90 Bed
- ------------------------------------------------------------------------------------------------------------------------------------
33g 11/10/97 522.06 Bed
33h 11/10/97 338.39 Bed
34 11/7/97 247.00 Unit
35 2/19/98 0.10 Sq. Ft. TJ Maxx, Inc. 25,000 10/31/01
- ------------------------------------------------------------------------------------------------------------------------------------
36 1/1/98 0.10 Sq. Ft. Hechinger 50,778 1/31/10
37 11/7/97 248.00 Unit
38 11/1/97 0.13 Sq. Ft. Zany Brainy 13,500 1/1/05
39 12/4/97 150.00 Unit
40 10/17/97 0.24 Sq. Ft. Wal-Mart 112,238 1/28/11
- ------------------------------------------------------------------------------------------------------------------------------------
41 3/11/98 0.15 Sq. Ft. Health Associates 14,278 7/1/06
42 10/1/96 0.15 Sq. Ft. GTE North Incorporated 153,102 10/6/06
43 2/2/98 200.00 Unit
44 3/28/98 0.18 Sq. Ft.
- ------------------------------------------------------------------------------------------------------------------------------------
44a 3/28/98 - Ansu Manufacturing 11,573 10/31/98
44b 3/28/98 - Cable Comm Technologies 22,100 1/31/01
44c 3/28/98 - Burch Yellow Pages 3,873 3/31/00
44d 3/28/98 - Xcell International 20,096 4/30/00
- ------------------------------------------------------------------------------------------------------------------------------------
45 NAP 4% of Gross Revenue Room
46 12/1/97 0.15 Sq. Ft. Kroger 62,000 5/31/07
47 2/12/98 0.23 Sq. Ft. Plitt Theatres, Inc. 63,256 2/28/23
48 1/16/98 255.00 Unit
49 12/2/97 0.15 Sq. Ft. Value City (Builder's Square) 102,530 1/31/06
- ------------------------------------------------------------------------------------------------------------------------------------
50 12/1/97 0.30 Sq. Ft. Office Max 30,120 10/31/02
51 11/10/97 239.00 Unit
52 5/1/98 - Sq. Ft. K-Mart Corporation 167,318 7/31/19
53 10/3/97 232.00 Unit
54 11/10/97 0.05 Sq. Ft. Homeplace 53,000 10/31/12
- ------------------------------------------------------------------------------------------------------------------------------------
55 5/1/98 - Sq. Ft.
55a 5/1/98 - Sq. Ft. Macaroni Grill 7,342 11/30/17
55b 5/1/98 - Sq. Ft. On The Border 6,507 11/30/17
55c 5/1/98 - Sq. Ft. Chili's 5,693 11/30/17
- ------------------------------------------------------------------------------------------------------------------------------------
55d 5/1/98 - Sq. Ft. Chili's 5,997 11/30/17
55e 5/1/98 - Sq. Ft. Chili's 5,257 11/30/17
55f 5/1/98 - Sq. Ft. Chili's 5,997 11/30/17
56 5/1/98 - Sq. Ft.
- ------------------------------------------------------------------------------------------------------------------------------------
56a 5/1/98 - Sq. Ft. Macaroni Grill 7,328 11/30/17
56b 5/1/98 - Sq. Ft. Macaroni Grill 7,281 11/30/17
56c 5/1/98 - Sq. Ft. On The Border 7,904 11/30/17
56d 5/1/98 - Sq. Ft. Chili's 5,997 11/30/17
56e 5/1/98 - Sq. Ft. Chili's 5,693 11/30/17
- ------------------------------------------------------------------------------------------------------------------------------------
56f 5/1/98 - Sq. Ft. Chili's 5,693 11/30/17
-
57 12/13/97 150.00 Unit
58 5/1/98 - Sq. Ft.
- ------------------------------------------------------------------------------------------------------------------------------------
58a 5/1/98 - Sq. Ft. Macaroni Grill 7,328 11/30/17
58b 5/1/98 - Sq. Ft. Macaroni Grill 7,342 11/30/17
58c 5/1/98 - Sq. Ft. Chili's 5,997 11/30/17
58d 5/1/98 - Sq. Ft. Chili's 5,693 11/30/17
58e 5/1/98 - Sq. Ft. Chili's 5,693 11/30/17
- ------------------------------------------------------------------------------------------------------------------------------------
58f 5/1/98 - Sq. Ft. Chili's 5,693 11/30/17
59 4/1/98 0.15 Sq. Ft. Columbia Aventura Hospital 33,150 1/31/00
60 11/17/97 264.00 Unit
61 11/30/97 252.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2nd Largest Tenant 3rd Largest Tenant
--------------------------------------------------------- -------------------------------------------------------------
Tenant Tenant
Control Area Leased Lease Area Leased Lease Control
No. Tenant Name (Sq. Ft.) Exp Date Tenant Name (Sq. Ft.) Exp Date No.
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
31 31
32 MacFrugals 21,018 1/31/06 Starship Theaters 15,260 12/14/00 32
33 33
33a 33a
- ------------------------------------------------------------------------------------------------------------------------------------
33b 33b
33c 33c
33d 33d
33e 33e
33f 33f
- ------------------------------------------------------------------------------------------------------------------------------------
33g 33g
33h 33h
34 34
35 Value Priced Clothing, Inc. 5,425 1/31/02 Kaya, Inc. 5,150 1/7/02 35
- ------------------------------------------------------------------------------------------------------------------------------------
36 CVS Pharmacy 24,000 5/1/00 Lone Star Steakhouse 5,813 10/31/99 36
37 37
38 Blockbuster Video 8,700 3/1/01 Buckhead Uniform 8,300 12/31/00 38
39 39
40 Bi-Lo 70,000 3/31/11 Eckerd 8,468 4/30/06 40
- ------------------------------------------------------------------------------------------------------------------------------------
41 American Radiology 13,566 7/31/07 Midatlantic Cardiovascular 9,169 6/30/06 41
42 42
43 43
44 44
- ------------------------------------------------------------------------------------------------------------------------------------
44a Rainbow Press 7,741 NAV Air Process 6,221 2/28/02 44a
44b APIC U.S.A. 14,400 6/30/99 Ideal Creations 12,800 7/31/99 44b
44c Sutter Corp. 2,242 NAV Yuasa-Yi 2,100 8/31/98 44c
44d American Graphics 14,923 9/30/03 Nextel Communications 11,757 5/31/99 44d
- ------------------------------------------------------------------------------------------------------------------------------------
45 45
46 Texas Patio, Inc. 18,267 4/30/99 B & H Fitness, Inc. 12,176 6/30/01 46
47 47
48 48
49 Golf Glen Theatre 26,000 12/31/99 Matsushita 12,500 1/31/99 49
- ------------------------------------------------------------------------------------------------------------------------------------
50 Baby Superstore 24,135 7/31/02 Barnes & Noble 20,040 3/1/09 50
51 51
52 52
53 53
54 Best Buy 46,520 1/31/17 Just For Feet 15,675 10/31/11 54
- ------------------------------------------------------------------------------------------------------------------------------------
55 55
55a 55a
55b 55b
55c 55c
- ------------------------------------------------------------------------------------------------------------------------------------
55d 55d
55e 55e
55f 55f
56 56
- ------------------------------------------------------------------------------------------------------------------------------------
56a 56a
56b 56b
56c 56c
56d 56d
56e 56e
- ------------------------------------------------------------------------------------------------------------------------------------
56f 56f
57 57
58 58
- ------------------------------------------------------------------------------------------------------------------------------------
58a 58a
58b 58b
58c 58c
58d 58d
58e 58e
- ------------------------------------------------------------------------------------------------------------------------------------
58f 58f
59 City of Aventura 11,662 12/31/99 Concorde Trading Group, Inc. 5,197 10/31/02 59
60 60
61 61
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
Control
No. Property Name Address
==========================================================================================================================
<S> <C> <C>
62 River Reach 628 River Reach Dr.
63 Maplewood Center 8200-8300 Shoppers Square
64 Health Care South(6 Prop) Various
64a Toombs Nursing Home 181 Oxley Drive
- --------------------------------------------------------------------------------------------------------------------------
64b Brentwood Terrace Health Center 115 Brentwood Drive
64c Lee County Health Care 214 Main Street
64d Liliann G. Carter Nursing Home 225 Hospital Street
64e Sparta Health Care Center Broad Street/Military Highway 22
64f Oconee Health Care Center 107 Ridgview Drive
- --------------------------------------------------------------------------------------------------------------------------
65 Spinnaker Reach Apartments 3875 San Pablo Rd.
66 Inverrary 441 Apartments 1196 NW 40th Avenue
67 Eastland Plaza 678 North Wilson Way
68 Woodhaven Apartments 625 South Redwood Road
- --------------------------------------------------------------------------------------------------------------------------
69 Best Western Greenfield Inn 3000 Enterprise Drive
70 Hampton Inn Pensacola Beach Two Via Del Luna
71 Plaza LaFayette 13011 - 13051 Newport Avenue
72 The Broun Portfolio Consolidation Various
- --------------------------------------------------------------------------------------------------------------------------
72a The Glen 148 Governors Court
72b The Mews Apartments 249 Meadows Drive
72c Meadowlark Apartments 101 Meadowlark Drive
73 North Willow Commons Shopping Center 1410-1520 West 86th Street
- --------------------------------------------------------------------------------------------------------------------------
74 International Club Apartments 1900 SW 122nd Avenue
75 Village Green Apartments 222 South Clovis Avenue
76 Liberty Gardens 101 Liberty Garden Road
77 Park Forest 7529 Fleta
78 Kings Harbor Multicare Center 2000 East Gun Hill Road
- --------------------------------------------------------------------------------------------------------------------------
79 Gateway Shopping Center 855 Interstate10 South
80 Briarcliffe Lakeside Apartments 1750 East 22nd Street
81 Daytona Beach Hilton Oceanfront Resort 2637 S. Atlantic Avenue
82 Valley Manor 141C Marina Drive
83 North Oaks Plaza 7151 Natural Bridge Road
- --------------------------------------------------------------------------------------------------------------------------
84 The Morrison Building 6525 Morrison Boulevard
85 Sandstone Apartments 405 East Prince Road
86 Innsbrook Village 800 E Nichols Blvd
87 1616 Walnut Street 1616 Walnut Street
88 Century Village Apartments 4801 Spencer Street
- --------------------------------------------------------------------------------------------------------------------------
89 Hampton Inn (Louisville) 800 Phillips Lane
90 Hampton Inn & Suites - Pineville 401 Towne Centre Boulevard
91 La Villita Apartments 1550 E Harmon
92 White Marlin Mall, Phase I North Side of U.S. Route 50
93 Claremont Retirement Village 7041 Bent Tree Blvd.
- --------------------------------------------------------------------------------------------------------------------------
94 Brookside West Apartments 420 Berman Road
95 Harris Boulevard I 5100 West Harris Bouldevard
96 Scott Mountain by the Brook 7828 SE Aspen Summit Drive
97 Classic Portfolio (Roll-up) Various
- --------------------------------------------------------------------------------------------------------------------------
97a 2 Horatio Street (Classic Portfolio) 2 Horatio Street
97b 162 W. 56th Street (Classic Portfolio) 162 W. 56th Street
97c 400 E. 52nd Street (Classic Portfolio) 400 E. 52nd Street
97d 45 E. 66th Street (Classic Portfolio) 45 E. 66th Street
97e 129 E. 82nd Street (Classic Portfolio) 129 E. 82nd Street
- --------------------------------------------------------------------------------------------------------------------------
98 Oak Hills Medical Plaza 7345 Medical Center Drive
99 North Point - Springhouse Phase I 5010 Split Rail Drive
100 Kensington Club Apartments 14250 Kimberley Lane
101 Village Green Office Park 5655 Lindero Canyon Road
- --------------------------------------------------------------------------------------------------------------------------
102 West Georgia Commons North Side of Lafayette Parkway
103 Colleyville Court 4904 Colleyville Road
104 Tlaquepaque Arts & Crafts Village 336 State Highway 179
105 Innsbrook Shoppes 4206 Cox Road
106 Glen Harbor Plaza S/W/C School Street and Highland Road
- --------------------------------------------------------------------------------------------------------------------------
107 Hulen Fashion Center 5200 South Hulen Street
108 Decatur Crossing Shopping Center 248 South Decatur Blvd
109 Montgomery Street 135 Montgomery Street
110 City Place 133 Stuart Street
111 Sunscape West Apartments 8840 19th St.
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial
No. City State Code Groups Balance ($) Balance ($) Balance Pool Balance
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
62 Orlando FL 32828 $ 9,945,000 $ 9,932,082.23 0.29% 41.67%
63 Manassas Park VA 20111 9,753,287 9,745,742.13 0.28 41.95
64 Various GA Various 9,800,000 9,717,397.08 0.28 42.23
64a Lyons GA 30436
- ------------------------------------------------------------------------------------------------------------------------------------
64b Waynesboro GA 30830
64c Leesburg GA 31763
64d Plains GA 31780
64e Sparta GA 31087
64f Oconee GA 31067
- ------------------------------------------------------------------------------------------------------------------------------------
65 Jacksonville FL 32224 9,700,000 9,687,495.88 0.28 42.51
66 Lauderhill FL 33133 9,600,000 9,586,461.99 0.28 42.78
67 Stockton CA 95202 9,600,000 9,565,038.58 0.28 43.06
68 Salt Lake City UT 84104 9,530,000 9,530,000.00 0.27 43.33
- ------------------------------------------------------------------------------------------------------------------------------------
69 Allen Park MI 48101 9,300,000 9,265,237.21 0.27 43.60
70 Pensacola Beach FL 32561 9,250,000 9,250,000.00 0.27 43.86
71 Tustin CA 92780 9,250,000 9,242,654.04 0.27 44.13
72 Various GA Various 9,250,000 9,237,003.50 0.27 44.40
- ------------------------------------------------------------------------------------------------------------------------------------
72a Cartersville GA 30120
72b Loganville GA 30249
72c McDonough GA 30253
73 Washington Township IN 46278 9,230,000 9,205,383.81 0.26 44.66
- ------------------------------------------------------------------------------------------------------------------------------------
74 Miami FL 33175 9,200,000 9,186,994.22 0.26 44.92
75 Frenso CA 93727 9,200,000 9,177,123.74 0.26 45.19
76 Bergenfield NJ 07621 9,150,000 9,136,905.79 0.26 45.45
77 St. Louis MO 63123 9,000,000 8,970,695.39 0.26 45.71
78 Bronx NY 10469 9,000,000 8,951,209.01 0.26 45.97
- ------------------------------------------------------------------------------------------------------------------------------------
79 Beaumont TX 77701 8,910,000 8,842,857.83 0.25 46.22
80 Wheaton IL 60187 8,800,000 8,776,084.48 0.25 46.47
81 Daytona Beach Shores FL 32118 8,300,000 8,281,860.32 0.24 46.71
82 Edison NJ 08817 8,200,000 8,174,179.08 0.24 46.95
83 Northwoods MO 63121 8,100,000 8,093,897.78 0.23 47.18
- ------------------------------------------------------------------------------------------------------------------------------------
84 Charlotte NC 28211 8,100,000 8,050,981.33 0.23 47.41
85 Tuscon AZ 85705 7,983,000 7,983,000.00 0.23 47.64
86 Sparks NV 89434 7,950,000 7,924,512.91 0.23 47.87
87 Philadelphia PA 19103 7,800,000 7,794,129.65 0.22 48.09
88 Las Vegas NV 89119 7,800,000 7,774,993.83 0.22 48.32
- ------------------------------------------------------------------------------------------------------------------------------------
89 Louisville KY 40209 7,800,000 7,771,500.87 0.22 48.54
90 Pineville NC 28134 Group B 7,800,000 7,766,189.12 0.22 48.77
91 Las Vegas NV 89119 7,800,000 7,765,332.63 0.22 48.99
92 Ocean City MD 21842 7,750,000 7,743,942.22 0.22 49.21
93 Columbus OH 43235 7,600,000 7,589,517.39 0.22 49.43
- ------------------------------------------------------------------------------------------------------------------------------------
94 Augusta GA 30909 7,600,000 7,579,696.26 0.22 49.65
95 Charlotte NC 28269 7,400,000 7,400,000.00 0.21 49.86
96 Portland OR 97266 7,400,000 7,377,558.77 0.21 50.07
97 New York NY Various 7,220,000 7,201,769.35 0.21 50.28
- ------------------------------------------------------------------------------------------------------------------------------------
97a New York NY 10001
97b New York NY 10001
97c New York NY 10001
97d New York NY 10021
97e New York NY 10028
- ------------------------------------------------------------------------------------------------------------------------------------
98 West Hills CA 91307 7,200,000 7,181,443.42 0.21 50.49
99 Winston-Salem NC 27106 7,200,000 7,171,377.96 0.21 50.69
100 Houston TX 77079 7,150,000 7,131,286.58 0.21 50.90
101 Westlake Village CA 91362 7,125,000 7,096,616.22 0.20 51.10
- ------------------------------------------------------------------------------------------------------------------------------------
102 LaGrange GA 30241 7,100,000 7,094,294.06 0.20 51.31
103 Collyville TX 76034 7,100,000 7,081,449.20 0.20 51.51
104 Sedona AZ 86336 7,065,000 7,055,984.78 0.20 51.71
105 Glen Allen VA 23060 7,000,000 7,000,000.00 0.20 51.92
106 Glen Cove NY 11542 7,000,000 6,990,558.40 0.20 52.12
- ------------------------------------------------------------------------------------------------------------------------------------
107 Fort Worth TX 76132 7,000,000 6,968,150.86 0.20 52.32
108 Las Vegas NV 89107 6,975,000 6,943,380.22 0.20 52.52
109 Jersey City NJ 07302 6,900,000 6,900,000.00 0.20 52.72
110 Boston MA 02116 6,900,000 6,892,159.81 0.20 52.91
111 Rancho Cucamonga CA 91701 6,850,000 6,839,980.49 0.20 53.11
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Interest Original Remaining
Control Mortgage Administrative Accrual Amortization Interest-Only Interest-Only
No. Rate (%) Cost Rate (%) Method Type Period (Mos.) Period (Mos.)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
62 7.4400% 0.0962% Actual/360 Fully Amortizing 0 0
63 7.3960 0.0962 Actual/360 Amortizing (ARD) 0 0
64 7.9500 0.0962 Actual/360 Amortizing Balloon 0 0
64a
- -----------------------------------------------------------------------------------------------------------------------------------
64b
64c
64d
64e
64f
- -----------------------------------------------------------------------------------------------------------------------------------
65 7.4700 0.0962 Actual/360 Fully Amortizing 0 0
66 7.1100 0.0962 Actual/360 Amortizing Balloon 0 0
67 7.3750 0.0962 Actual/360 Amortizing Balloon 0 0
68 8.1400 0.0962 Actual/360 Interest-Only then Amortizing (ARD) 23 13
- -----------------------------------------------------------------------------------------------------------------------------------
69 7.3400 0.0962 Actual/360 Amortizing Balloon 0 0
70 7.0600 0.1562 Actual/360 Amortizing Balloon 0 0
71 7.1600 0.0962 Actual/360 Amortizing Balloon 0 0
72 7.1250 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
72a
72b
72c
73 7.0100 0.1012 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
74 7.1000 0.0962 Actual/360 Amortizing Balloon 0 0
75 7.4200 0.0962 Actual/360 Amortizing Balloon 0 0
76 7.0500 0.1212 Actual/360 Amortizing Balloon 0 0
77 7.0800 0.0962 30/360 Amortizing Balloon 0 0
78 7.8900 0.0962 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
79 8.6100 0.0962 Actual/360 Amortizing Balloon 0 0
80 6.9000 0.0962 Actual/360 Amortizing (ARD) 0 0
81 7.2300 0.0962 Actual/360 Amortizing (ARD) 0 0
82 7.2500 0.0962 Actual/360 Amortizing Balloon 0 0
83 7.4250 0.1462 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
84 7.2000 0.0962 30/360 Amortizing Balloon 0 0
85 8.1400 0.0962 Actual/360 Interest-Only then Amortizing (ARD) 23 13
86 7.1590 0.0962 Actual/360 Amortizing Balloon 0 0
87 7.4300 0.1462 Actual/360 Amortizing Balloon 0 0
88 7.1590 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
89 7.5000 0.1462 Actual/360 Amortizing Balloon 0 0
90 7.8750 0.0962 Actual/360 Amortizing Balloon 0 0
91 7.3560 0.0962 Actual/360 Amortizing Balloon 0 0
92 7.2400 0.1462 Actual/360 Amortizing Balloon 0 0
93 7.2000 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
94 7.0000 0.0962 Actual/360 Amortizing Balloon 0 0
95 7.1000 0.0962 Actual/360 Fully Amortizing 0 0
96 7.4400 0.0962 Actual/360 Amortizing Balloon 0 0
97 7.3300 0.0962 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
97a
97b
97c
97d
97e
- -----------------------------------------------------------------------------------------------------------------------------------
98 7.2100 0.1462 Actual/360 Amortizing (ARD) 0 0
99 7.2150 0.0962 30/360 Amortizing Balloon 0 0
100 7.1200 0.0962 Actual/360 Amortizing Balloon 0 0
101 7.8630 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
102 7.1000 0.0962 Actual/360 Amortizing Balloon 0 0
103 7.1300 0.0962 Actual/360 Amortizing (ARD) 0 0
104 7.5100 0.0962 Actual/360 Amortizing (ARD) 0 0
105 7.3500 0.0962 Actual/360 Amortizing Balloon 0 0
106 7.2900 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
107 7.1200 0.0962 Actual/360 Amortizing (ARD) 0 0
108 7.2630 0.0962 Actual/360 Amortizing Balloon 0 0
109 7.0600 0.0962 Actual/360 Fully Amortizing 0 0
110 7.5200 0.0962 Actual/360 Amortizing Balloon 0 0
111 6.9600 0.0962 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Original Remaining
Term to Term to Original Remaining
Control Maturity Maturity Amortization Amortization Origination Maturity Balloon
No. (Mos.) (Mos.) Term (Mos.) Term (Mos.) Date or ARD Balance ($) Property Type
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
62 360 358 360 358 2/6/98 3/1/28 $ 1,024,898 Multifamily - Section 42
63 117 116 357 356 12/4/97 1/1/08 8,610,701 Retail - Anchored
64 120 115 240 235 11/10/97 12/1/07 6,898,013 Health Care - Skilled Nursing
64a Health Care - Skilled Nursing
- -------------------------------------------------------------------------------------------------------------------------------
64b Health Care - Skilled Nursing
64c Health Care - Skilled Nursing
64d Health Care - Skilled Nursing
64e Health Care - Skilled Nursing
64f Health Care - Skilled Nursing
- -------------------------------------------------------------------------------------------------------------------------------
65 360 358 360 358 2/27/98 3/1/28 1,010,991 Multifamily - Section 42
66 120 118 360 358 2/19/98 3/1/08 8,399,795 Multifamily
67 120 115 360 355 11/14/97 12/1/07 8,452,851 Retail - Anchored
68 120 110 360 360 6/16/97 7/1/07 8,806,490 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
69 180 177 300 297 1/21/98 2/1/13 5,982,702 Hotel - Limited Service
70 120 120 300 300 4/6/98 5/1/08 7,415,934 Hotel - Limited Service
71 156 155 360 359 3/17/98 4/1/11 7,561,277 Retail - Unanchored
72 120 118 360 358 2/24/98 3/1/08 8,096,742 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
72a Multifamily
72b Multifamily
72c Multifamily
73 180 177 360 357 1/23/98 2/1/13 7,059,774 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
74 120 118 360 358 2/19/98 3/1/08 8,047,686 Multifamily
75 119 116 360 357 1/5/98 1/1/08 8,119,184 Multifamily
76 120 118 360 358 2/9/98 3/1/08 7,993,399 Multifamily
77 180 176 360 356 12/24/97 1/1/13 6,682,287 Multifamily
78 240 237 240 237 1/30/98 2/1/18 365,560 Health Care - Skilled Nursing
- -------------------------------------------------------------------------------------------------------------------------------
79 120 109 330 319 5/5/97 6/1/07 7,815,335 Retail - Anchored
80 120 117 360 357 1/12/98 2/1/08 7,650,822 Multifamily
81 120 118 300 298 2/25/98 2/29/08 6,689,586 Hotel - Full Service
82 180 176 360 356 12/30/97 1/1/13 6,341,962 Multifamily
83 240 239 360 359 3/9/98 4/1/18 5,116,516 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
84 120 115 300 295 11/26/97 12/1/07 6,404,801 Office
85 120 110 360 360 6/16/97 7/1/07 7,376,937 Multifamily
86 120 116 360 356 12/31/97 1/1/08 6,960,150 Multifamily
87 120 119 360 359 3/30/98 4/1/08 6,880,415 Office
88 120 116 360 356 12/31/97 1/1/08 6,828,828 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
89 120 117 300 297 1/30/98 2/1/08 6,331,846 Hotel - Limited Service
90 120 116 300 296 12/31/97 1/1/08 6,403,372 Hotel - Limited Service
91 120 114 360 354 10/28/97 11/1/07 6,863,780 Multifamily
92 120 119 360 359 3/2/98 4/1/08 6,803,099 Retail - Anchored
93 120 118 360 358 2/27/98 3/1/08 6,665,513 Health Care - Congregate Care
- -------------------------------------------------------------------------------------------------------------------------------
94 120 117 360 357 1/13/98 2/1/08 6,625,083 Multifamily
95 240 240 240 240 4/3/98 5/1/18 252,508 Industrial
96 120 116 360 356 12/10/97 1/1/08 6,525,409 Multifamily
97 120 117 360 357 1/29/98 2/1/08 6,347,918 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
97a Retail - Unanchored
97b Retail - Unanchored
97c Retail - Unanchored
97d Retail - Unanchored
97e Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
98 120 117 360 357 1/30/98 2/1/08 6,310,886 Office
99 120 115 360 355 11/26/97 12/1/07 6,209,383 Multifamily
100 120 117 360 357 1/29/98 2/1/08 6,252,451 Multifamily
101 120 114 360 354 10/30/97 11/1/07 6,349,079 Office
- -------------------------------------------------------------------------------------------------------------------------------
102 120 119 360 359 3/5/98 4/1/08 6,209,802 Retail - Anchored
103 120 117 360 357 12/31/97 2/1/08 6,210,345 Retail - Anchored
104 120 118 360 358 2/27/98 3/1/08 6,245,703 Retail - Unanchored
105 180 180 360 360 4/3/98 5/1/13 5,443,635 Retail - Unanchored
106 72 70 360 358 2/27/98 3/1/04 6,568,393 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
107 132 129 276 273 1/30/98 2/1/09 5,094,442 Retail - Anchored
108 120 114 360 354 10/30/97 11/1/07 6,123,216 Retail - Anchored
109 360 360 360 360 4/3/98 5/1/28 656,458 Multifamily
110 120 119 300 299 3/16/98 4/1/08 5,609,345 Retail - Unanchored
111 120 118 360 358 2/17/98 3/1/08 5,969,833 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Annual
Control Debt Net Appraised
No. Prepayment Provisions Service ($) Cash Flow ($) DSCR (x) Value ($)
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
62 L(5),YM1%(10),1(15) $ 829,545 $ 1,049,162 1.26x $ 11,700,000
63 L(3.75),D(5.75),O(.25) 811,895 1,178,200 1.45 13,300,000
64 L(3),4(3),3(1),2(1),1(1),O(1) or D(Borr) 979,997 1,673,993 1.71 16,113,000
64a 3,630,000
- ------------------------------------------------------------------------------------------------------------------------------
64b 3,490,000
64c 2,650,000
64d 2,634,000
64e 2,160,000
64f 1,549,000
- ------------------------------------------------------------------------------------------------------------------------------
65 L(5),YM1%(10),1(15) 811,496 982,737 1.21 11,600,000
66 L(4),YM1%(5.75),O(.25) 774,958 1,057,496 1.36 12,000,000
67 L(2.417),D(7.33),O(.25) 795,658 998,687 1.26 12,000,000
68 L(2),YM1%(3),5(1),4(1),3(1),2(1),1(.5),O(.5) 850,321 (2) 1,072,873 1.26 13,000,000
- ------------------------------------------------------------------------------------------------------------------------------
69 L(4),YM1%(10.75),O(.25) or D(Borr) 813,135 1,141,302 1.40 14,400,000
70 L(4),D(5.5),O(.5) 788,779 1,738,546 2.20 15,200,000
71 L(4),D(9) 750,452 946,752 1.26 12,500,000
72 L(5),YM1%(4.75),O(.25) 747,828 1,122,548 1.50 11,615,000
- ------------------------------------------------------------------------------------------------------------------------------
72a 5,385,000
72b 4,130,000
72c 2,100,000
73 L(7),D(7.5),O(.5) 737,633 970,086 1.32 11,700,000
- ------------------------------------------------------------------------------------------------------------------------------
74 L(4),YM1%(5.75),O(.25) 741,923 972,209 1.31 11,500,000
75 L(3),YM1%(6.42),O(.5) 765,894 937,374 1.22 11,715,000
76 L(6),D(4) 734,193 979,532 1.33 11,450,000
77 L(2),YM1%(8),3(1),2(1),1(1),O(2) 724,339 1,021,076 1.41 12,750,000
78 L(2.25),D(17.5),O(.25) 895,976 2,088,648 2.33 43,000,000
- ------------------------------------------------------------------------------------------------------------------------------
79 L(4),YM1%(5.75),O(.25) or D(Borr) 847,200 1,058,887 1.25 13,000,000
80 L(4),D(5.75),O(.25) 695,482 870,335 1.25 11,000,000
81 L(4),D(5.75),O(.25) 718,633 1,064,886 1.48 14,000,000
82 L(1),YM1%(13.5),O(.5) 671,262 839,793 1.25 10,300,000
83 L(10),YM1%(9.5),O(.5) 674,652 879,371 1.30 10,800,000
- ------------------------------------------------------------------------------------------------------------------------------
84 L(4),YM1%(5.5),O(.5) 699,440 1,177,590 1.68 12,400,000
85 L(2),YM1%(3),5(1),4(1),3(1),2(1),1(.5),O(.5) 712,289 (2) 850,963 1.19 10,000,000
86 L(4),D(5.83),O(.17) 644,918 985,616 1.53 10,600,000
87 L(4),D(5.75),O(.25) 649,984 922,842 1.42 10,900,000
88 L(4),D(5.83),O(.17) 632,750 877,807 1.39 10,400,000
- ------------------------------------------------------------------------------------------------------------------------------
89 L(4),D(5.75),O(.25) 691,696 1,031,492 1.49 10,400,000
90 L(4),D(5.75),O(.25) 714,687 984,582 1.38 10,425,000
91 L(4),D(5.66),O(.33) 645,260 855,892 1.33 9,800,000
92 L(4),D(5.5),O(.5) 633,793 854,994 1.35 10,800,000
93 L(4),D(6) 619,055 1,016,496 1.64 11,000,000
- ------------------------------------------------------------------------------------------------------------------------------
94 L(1),YM1%(8.5),O(.5) 606,756 788,797 1.30 10,000,000
95 L(9),YM1%(10.5),O(.5) 693,806 871,324 1.26 10,320,000
96 L(2),YM1%(7.75),O(.25) 617,258 771,953 1.25 9,400,000
97 L(5),D(4.75),O(.25) 595,746 795,713 1.34 10,000,000
- ------------------------------------------------------------------------------------------------------------------------------
97a
97b
97c
97d
97e
- ------------------------------------------------------------------------------------------------------------------------------
98 L(4),D(5.75),O(.25) 587,058 788,557 1.34 10,500,000
99 L(4),YM1%(5.5),O(.5) 587,351 756,576 1.29 9,000,000
100 L(2.83),YM(6.92),O(.25) or D(Borr) 577,761 730,096 1.26 9,150,000
101 L(4),D(5.83),O(.17) 619,222 905,615 1.46 9,500,000
- ------------------------------------------------------------------------------------------------------------------------------
102 L(4),D(5.5),O(.5) 572,571 756,062 1.32 10,350,000
103 L(4),D(5.5),O(.5) 574,296 740,824 1.29 9,470,000
104 L(4),D(5.75),O(.25) 593,375 739,586 1.25 9,600,000
105 L(5),D(10) 578,737 779,288 1.35 9,350,000
106 L(4),D(1.5),O(.5) 575,309 759,611 1.32 10,000,000
- ------------------------------------------------------------------------------------------------------------------------------
107 L(4),D(6.75),O(.25) 619,430 793,989 1.28 9,600,000
108 L(4),D(5.83),O(.17) 571,720 823,982 1.44 9,400,000
109 L(4),YM1%(6),1(19.75),O(.25) or D(Borr) 554,211 697,376 1.26 14,000,000
110 L(4),D(5.75),O(.25) 612,962 921,889 1.50 11,000,000
111 L(4),D(5.75),O(.25) 544,672 705,735 1.30 9,500,000
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten
Hospitality Sq. Ft., Loan per
Cut-off Scheduled Average Units Sq. Ft., Units
Control Appraisal Date Maturity Date Daily Year Year Bed, Pad Bed, Pad Occupancy
No. Year LTV (%) LTV (%) Rate ($) Built Renovated or Room or Room ($) Percentage (%)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
62 1997 84.9% 8.8% 1996 N/A 300 Units $ 33,150.00 98.0%
63 1998 73.3 64.7 1991 N/A 136,999 Sq. Ft. 71.19 91.7
64 1997 60.3 42.8 538 Beds 18,215.61 98.3
64a 1997 1974 N/A 144 Beds 96.7
- --------------------------------------------------------------------------------------------------------------------------------
64b 1997 1972 1993 103 Beds 99.9
64c 1997 1996 N/A 60 Beds 97.7
64d 1997 1900 1970's 100 Beds 97.8
64e 1997 1972 N/A 81 Beds 98.7
64f 1997 1935 1969 50 Beds 99.5
- --------------------------------------------------------------------------------------------------------------------------------
65 1997 83.5 8.7 1996 N/A 288 Units 33,680.56 92.2
66 1997 79.9 70.0 1972 N/A 324 Units 29,629.63 99.0
67 1997 79.7 70.4 1990 N/A 139,221 Sq. Ft. 68.96 90.6
68 1997 73.3 67.7 1986 N/A 378 Units 25,211.64 88.5
- --------------------------------------------------------------------------------------------------------------------------------
69 1997 64.3 41.6 $78.00 1966 1988 209 Rooms 44,497.61 NAP
70 1997 60.9 48.8 91.25 1995 N/A 181 Rooms 51,104.97 NAP
71 1997 73.9 60.5 1986 1990 54,126 Sq. Ft. 170.90 97.7
72 1997 79.5 69.7 252 Units 36,706.35 94.1
- --------------------------------------------------------------------------------------------------------------------------------
72a 1997 1987,1996 N/A 108 Units 91.7
72b 1997 1990 N/A 88 Units 94.3
72c 1997 1986,1989 N/A 56 Units 100.0
73 1997 78.7 60.3 1989-1994 N/A 103,934 Sq. Ft. 88.81 100.0
- --------------------------------------------------------------------------------------------------------------------------------
74 1997 79.9 70.0 1987 N/A 202 Units 45,544.55 98.0
75 1997 78.3 69.3 1974-77 N/A 414 Units 22,222.22 90.3
76 1997 79.8 69.8 1957 N/A 230 Units 39,782.61 97.0
77 1997 70.4 52.4 1972 N/A 252 Units 35,714.29 96.0
78 1997 20.8 0.9 1974,1980 1995 720 Beds 12,500.00 98.0
- --------------------------------------------------------------------------------------------------------------------------------
79 1997 68.0 60.1 1957 1996 289,550 Sq. Ft. 30.77 89.4
80 1997 79.8 69.6 1978 1994 195 Units 45,128.21 96.4
81 1997 59.2 47.8 89.17 1973 1994-96 214 Rooms 38,785.05 NAP
82 1997 79.4 61.6 1978 N/A 202 Units 40,594.06 97.5
83 1997 74.9 47.4 1962 1994-1997 264,230 Sq. Ft. 30.66 99.0
- --------------------------------------------------------------------------------------------------------------------------------
84 1997 64.9 51.7 1974 1996-1997 113,124 Sq. Ft. 71.60 94.8
85 1997 79.8 73.8 1986 N/A 330 Units 24,190.91 82.1
86 1997 74.8 65.7 1980 1997 240 Units 33,125.00 100.0
87 1998 71.5 63.1 1929 1982 228,949 Sq. Ft. 34.07 99.8
88 1997 74.8 65.7 1978 1996 258 Units 30,232.56 92.5
- --------------------------------------------------------------------------------------------------------------------------------
89 1997 74.7 60.9 69.68 1995 N/A 130 Rooms 60,000.00 NAP
90 1997 74.5 61.4 80.90 1997 N/A 111 Rooms 70,270.27 NAP
91 1997 79.2 70.0 1977 1996 246 Units 31,707.32 95.0
92 1998 71.7 63.0 1986-87 N/A 147,942 Sq. Ft. 52.39 88.6
93 1998 69.0 60.6 1988 N/A 200 Beds 38,000.00 87.0
- --------------------------------------------------------------------------------------------------------------------------------
94 1998 75.8 66.3 1968 1992-1996 188 Units 40,425.53 100.0
95 1997 71.7 2.5 1984 N/A 388,800 Sq. Ft. 19.03 92.1
96 1997 78.5 69.4 1997 N/A 138 Units 53,623.19 100.0
97 1997 72.0 63.5 1916-1941 N/A 14,128 Sq. Ft. 511.04 97.5
- --------------------------------------------------------------------------------------------------------------------------------
97a 1997 1929 N/A 2,344 Sq. Ft. 100.0
97b 1997 1926 N/A 4,779 Sq. Ft. 100.0
97c 1997 1931 1980's 1,912 Sq. Ft. 100.0
97d 1997 1941 N/A 1,500 Sq. Ft. 100.0
97e 1997 1916 N/A 3,593 Sq. Ft. 90.2
- --------------------------------------------------------------------------------------------------------------------------------
98 1997 68.4 60.1 1985 N/A 49,308 Sq. Ft. 146.02 100.0
99 1997 79.7 69.0 1983 N/A 249 Units 28,915.66 96.0
100 1998 77.9 68.3 1972 N/A 182 Units 39,285.71 94.5
101 1997 74.7 66.8 1983 N/A 88,895 Sq. Ft. 80.15 96.8
- --------------------------------------------------------------------------------------------------------------------------------
102 1997 68.5 60.0 1978 N/A 231,299 Sq. Ft. 30.70 88.7
103 1997 74.8 65.6 1992 N/A 85,393 Sq. Ft. 83.14 100.0
104 1997 73.5 65.1 1972-78 N/A 42,516 Sq. Ft. 166.17 100.0
105 1998 74.9 58.2 1989 N/A 74,728 Sq. Ft. 93.67 99.0
106 1998 69.9 65.7 1990 N/A 31,800 Sq. Ft. 220.13 100.0
- --------------------------------------------------------------------------------------------------------------------------------
107 1997 72.6 53.1 1985 N/A 182,069 Sq. Ft. 38.45 94.0
108 1997 73.9 65.1 1990 N/A 99,582 Sq. Ft. 70.04 85.0
109 1998 49.3 4.7 1965 1995 200 Units 34,500.00 92.0
110 1998 62.7 51.0 1983 N/A 55,706 Sq. Ft. 123.86 85.0
111 1997 72.0 62.8 1977 N/A 172 Units 39,825.58 97.7
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Tenant
------------------------------------------------------------------------------
Tenant
Control Rent Roll Underwriting Area Leased Lease
No. Date Reserves ($) per Tenant Name (Sq. Ft.) Exp Date
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
62 10/23/98 $175.00 Unit
63 3/3/98 0.15 Sq. Ft. Shoppers Food Warehouse 47,040 4/30/02
64 0 225.00 Bed
64a 0 225.00 Bed
- ------------------------------------------------------------------------------------------------------------------------------------
64b 0 225.00 Bed
64c 0 225.00 Bed
64d 0 225.00 Bed
64e 0 225.00 Bed
64f 0 225.00 Bed
- ------------------------------------------------------------------------------------------------------------------------------------
65 9/22/97 175.00 Unit
66 12/5/97 277.00 Unit
67 3/31/98 0.10 Sq. Ft. Food 4 Less 50,875 7/1/09
68 6/5/97 175.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
69 NAP 4% of Gross Revenue Room
70 NAP 4% of Gross Revenue Room
71 3/11/98 0.11 Sq. Ft. Nieuport 17 Restaurant 6,882 5/31/15
72 261.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
72a 1/16/98 261.00 Unit
72b 1/6/98 261.00 Unit
72c 1/9/98 261.00 Unit
73 12/1/97 0.24 Sq. Ft. Stein Mart, Inc. 34,690 4/30/04
- ------------------------------------------------------------------------------------------------------------------------------------
74 12/5/97 253.00 Unit
75 8/31/97 175.00 Unit
76 12/2/97 239.00 Unit
77 11/30/97 206.00 Unit
78 1/1/98 250.00 Bed
- ------------------------------------------------------------------------------------------------------------------------------------
79 3/1/98 0.10 Sq. Ft. White House 50,000 4/30/03
80 11/22/97 270.95 Unit
81 NAP 4% of Gross Revenue Room
82 12/1/97 200.00 Unit
83 1/1/98 0.20 Sq. Ft. North Oaks Bowl 59,000 8/31/03
- ------------------------------------------------------------------------------------------------------------------------------------
84 4/1/98 0.10 Sq. Ft. SouthTrust Bank 23,042 8/14/98
85 6/16/97 175.00 Unit
86 11/17/97 296.00 Unit
87 3/4/98 0.20 Sq. Ft. Temple University 91,538 12/15/01
88 9/1/97 220.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
89 NAP 4% of Gross Revenue Room
90 NAP 4% of Gross Revenue Room
91 7/28/97 245.00 Unit
92 1/15/98 0.15 Sq. Ft. Rose's Department Store 54,000 8/20/06
93 12/24/97 250.00 Bed
- ------------------------------------------------------------------------------------------------------------------------------------
94 12/30/97 200.00 Unit
95 4/1/98 0.10 Sq. Ft. Verbatim Corporation 213,840 6/30/03
96 11/25/97 150.00 Unit
97 4/15/98 0.10 Sq. Ft.
- ------------------------------------------------------------------------------------------------------------------------------------
97a 4/15/98 - Benne Boy, Inc 864 4/30/03
97b 4/15/98 - Joy Delicatessen 1,700 7/31/00
97c 4/15/98 - Brancusi of New York 1,912 7/31/98
97d 4/15/98 - Widing & Peck Art Gallery 1,500 4/30/00
97e 4/15/98 - Rug Rat, Ltd. 850 4/30/05
- ------------------------------------------------------------------------------------------------------------------------------------
98 1/10/98 0.23 Sq. Ft. Affiliates in Medical Spec. 9,251 7/15/05
99 10/25/97 294.35 Unit
100 1/14/98 250.00 Unit
101 9/16/97 0.25 Sq. Ft. Infotouch Corp. 5,790 12/20/00
- ------------------------------------------------------------------------------------------------------------------------------------
102 2/27/98 0.16 Sq. Ft. Belk 62,109 12/31/99
103 10/8/97 0.10 Sq. Ft. Kroger 52,618 4/25/18
104 2/28/98 0.15 Sq. Ft. Rene's at Talquepaque 3,682 5/31/00
105 1/1/98 0.32 Sq. Ft. The Place 14,155 8/30/06
106 2/27/98 0.14 Sq. Ft. Cineplex Odeon 28,000 12/15/09
- ------------------------------------------------------------------------------------------------------------------------------------
107 12/1/97 0.20 Sq. Ft. Burlington Coat Factory 48,318 1/31/11
108 7/28/97 0.16 Sq. Ft. Marshalls 27,054 1/31/03
109 4/1/98 200.00 Unit
110 8/29/97 0.15 Sq. Ft. Brew Moon 7,808 12/7/04
111 12/17/97 207.43 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2nd Largest Tenant 3rd Largest Tenant
--------------------------------------------------------- -------------------------------------------------------------
Tenant Tenant
Control Area Leased Lease Area Leased Lease Control
No. Tenant Name (Sq. Ft.) Exp Date Tenant Name (Sq. Ft.) Exp Date No.
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
62 62
63 Gold's Gym 15,050 2/28/00 Oldie's Music Legends 8,000 12/31/02 63
64 64
64a 64a
- ------------------------------------------------------------------------------------------------------------------------------------
64b 64b
64c 64c
64d 64d
64e 64e
64f 64f
- ------------------------------------------------------------------------------------------------------------------------------------
65 65
66 66
67 $0.98 Clearance 13,920 4/1/06 Walgreens 13,173 1/7/07 67
68 68
- ------------------------------------------------------------------------------------------------------------------------------------
69 69
70 70
71 Great Western Bank 6,363 4/30/02 Tustin Brewing 4,548 5/30/06 71
72 72
- ------------------------------------------------------------------------------------------------------------------------------------
72a 72a
72b 72b
72c 72c
73 Blockbuster Video 6,315 4/30/99 Applebee's 4,815 12/31/00 73
- ------------------------------------------------------------------------------------------------------------------------------------
74 74
75 75
76 76
77 77
78 78
- ------------------------------------------------------------------------------------------------------------------------------------
79 Weiners 44,750 1/31/01 Beall's 21,500 1/31/02 79
80 80
81 81
82 82
83 Schnucks 26,752 1/31/01 Jobs Partnership Center (St. Louis County) 24,710 1/31/09 83
- ------------------------------------------------------------------------------------------------------------------------------------
84 McNeary Insurance Consulting 13,918 9/30/98 StaffAmerica Corp. 7,470 6/30/98 84
85 85
86 86
87 Park Amer 40,195 10/31/00 Levy, Angstreich, Finney 10,130 5/30/02 87
88 88
- ------------------------------------------------------------------------------------------------------------------------------------
89 89
90 90
91 91
92 White Marlin Premier Cinemas 18,773 8/31/01 Rite Aid Pharmacy 10,010 5/31/03 92
93 93
- ------------------------------------------------------------------------------------------------------------------------------------
94 94
95 Simmons Company 144,180 4/30/03 95
96 96
97 97
- ------------------------------------------------------------------------------------------------------------------------------------
97a Mxyplyzyk d/b/a Saltwater Pool 708 7/31/02 Mxyplyzyk 416 4/30/03 97a
97b Seventh Avenue Gallery 1,281 2/28/98 Think New York 701 7/31/06 97b
97c 97c
97d 97d
97e Mak's Custom Tailoring 546 12/31/01 Kenneth Bower 470 10/31/99 97e
- ------------------------------------------------------------------------------------------------------------------------------------
98 OBGYN Affil. 8,710 7/15/05 Pediatric Affiliates 4,922 7/15/05 98
99 99
100 100
101 Pacific Ent. Suites 5,447 NAV P & W Software 4,846 1/14/00 101
- ------------------------------------------------------------------------------------------------------------------------------------
102 J.C. Penney 61,115 3/31/99 Goody's Family Clothing 22,900 3/31/04 102
103 Healthy Approach Market 4,517 4/30/99 Trinity Western Title 4,127 8/31/99 103
104 El Rincon Restaurant 3,114 3/14/98 Mothers Nature's 2,567 12/1/01 104
105 Damans 9,723 6/30/07 YMCA 9,154 8/31/99 105
106 Starbucks Corporation 1,500 2/28/05 La Famiglia Pizzaria & Rest. 1,200 3/1/05 106
- ------------------------------------------------------------------------------------------------------------------------------------
107 Office Max 27,350 10/31/11 Coomer's Craft Mall 12,474 10/14/99 107
108 Strouds 12,000 9/1/99 Learning is Fun 6,480 7/1/01 108
109 109
110 Bennigan's 7,186 1/31/07 BNN 6,464 6/30/98 110
111 111
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
Control
No. Property Name Address
==========================================================================================================================
<S> <C> <C>
112 Orangebrook Manor Apartments 5400 Yarmouth Avenue
113 Trinity Place Apartments 1331 Trinity Place
114 Le Med Apartments 950 W. Sierra Madre Avenue
115 Pleasant Hills Villas 5520 Pleasant Hill Avenue
116 Westminster Plaza 12109-12121 Westheimer Road
- --------------------------------------------------------------------------------------------------------------------------
117 Legacy Apartments 1411 East Orangewood Avenue
118 Valley Breeze Apartments 1394 Oro Vista Road
119 City Center Building 227 Bronough Street
120 Dublin Mall U.S. Highway 80 and Shamrock Drive
121 Fountain Court 6355-6605 Manatee Avenue
- --------------------------------------------------------------------------------------------------------------------------
122 New Market Mall NEQ I 270 & Sawmill Road
123 Highgate Apartments 5710 Fourth St.
124 Playa Blanca Apartments 1905-79 Avenida Del Mexico
125 Minges Brook Mall 5700 Beckley Road
126 The Addison 831 E. Morehead St.
- --------------------------------------------------------------------------------------------------------------------------
127 Carolina Apartments 401 Highway 54 Bypass
128 Holiday Inn Lynchburg 601 Main Street
129 PalmTree Plaza 3513-3533 Canon Road
130 Victoria Apartments 414-444 South Ardmore Avenue
131 Pelham at Hyland Business Center Pelham Road at Hyland Road
- --------------------------------------------------------------------------------------------------------------------------
132 Franklin Plaza 281-339 Bickett Boulevard
133 Cumberland Green 26 Ladow Avenue
134 Spring Center 8627 16th Street
135 Rose Hill I 6200-6268 Rose Hill Drive
136 Officemax and Best Buy 2420 & 2452 East Springs Drive
- --------------------------------------------------------------------------------------------------------------------------
137 Two Executive Boulevard Two Executive Boulevard
138 Green Grove 99 Green Grove
139 Constantine Village 26 Constantine Place
140 Q Club Sugarland 14111 Southwest Freeway
141 Shoppes of Olney 3110-3134 Olney Sandy Spring Road
- --------------------------------------------------------------------------------------------------------------------------
142 United HealthCare Office Bldg 13621 NW 12th Street
143 Linden Court Apartments 372 S. Ironwood Ave.
144 Serra Commons Apartments 1580 Southgate Boulevard
145 A & P Grocery Store 179 Stonington Road (U.S. Route 1)
146 540 Atlantic Avenue 540 Atlantic Avenue
- --------------------------------------------------------------------------------------------------------------------------
147 Maple Leaf Plaza 540 Water Street
148 Holiday Inn City Center 175 East Town Street
149 53, 53-West, and 102 Commerce Center 10551 and 10791 NW 53rd Street and 5401 and 5405 N
150 K & K Warehousing - 701 Fourth Avenue 701 Fourth Avenue
151 Emerald Apartments 964 President Avenue
- --------------------------------------------------------------------------------------------------------------------------
152 MacArthur Plaza I & II 7945 MacArthur Boulevard and 6500 Seven Locks Road
153 Mount Vernon 38-A Mount Vernon Drive
154 Evergreen Plaza 1710 Route 38
155 21 DuPont Circle 21 DuPont Circle
156 1-3 Parklands Drive (Parkland Office Park) 1-3 Parklands Drive
- --------------------------------------------------------------------------------------------------------------------------
157 Payne Ranch Centre SWC of Grand Ave. & Peyton Drive
158 Leonardine Gardens 110 Leonardine Avenue
159 Kroger La Grange 203 Commerce Avenue
160 Park Encino Apartments 5325 Newcastle Avenue
161 Wickes Shopping Center 800 Central Expressway North
- --------------------------------------------------------------------------------------------------------------------------
162 Ashby Square West Shopping Center SEC of West Broad Street & Tuckernuck Drive
163 Hampton Inn Detroit Metro Airport 30847 Flynn Drive
164 Commerce Park of Palm Beach County 3111 Fortune Way
165 Forest Glen Apartments 1639 North Forest Road
166 Home - Springhouse Phase II 5010 Split Rail Drive
- --------------------------------------------------------------------------------------------------------------------------
167 Southside Comfort Inn 120 West Third Street
168 Mill Park Apartments 2900 McCann Road
169 Warehouse Specialists - Enterprise Park 3.5, 4, 5 8511-8555 Martin Drive
170 Grand Central Station Shopping Center 8756 Research Blvd
171 Ramada Inn Newburgh 1055 Union Avenue
- --------------------------------------------------------------------------------------------------------------------------
172 73 Spring Street Limited Partnership 67-73 Spring Street
173 Beacon Mill Village 2 Main Street
174 Club at Woodland Pond 13801 North 37th Street
175 La Maison 2308 & 2408 Houma Blvd
176 Connecticut Avenue Days Inn 4400 Connecticut Avenue, NW
- --------------------------------------------------------------------------------------------------------------------------
177 Dill Creek Commons Shopping Center 1360 West Wade Hampton Blvd.
178 Whole Foods Market 711 University Avenue
179 One Sentry Parkway One Sentry Parkway
180 Hampton Inn - Matthews 9615 Independence Point Parkway
181 Cambridge House 250 Bellbrook Avenue
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial
No. City State Code Groups Balance ($) Balance ($) Balance Pool Balance
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
112 Encino CA 91316 $ 6,848,492 $ 6,838,693.78 0.20% 53.31%
113 Middletown OH 45042 6,800,000 6,794,491.45 0.20 53.50
114 Azusa CA 91702 6,750,000 6,744,467.08 0.19 53.70
115 Las Vegas NV 89103 6,750,000 6,732,378.75 0.19 53.89
116 Houston TX 77077 6,700,000 6,690,963.03 0.19 54.08
- ------------------------------------------------------------------------------------------------------------------------------------
117 Phoenix AZ 85020 6,700,000 6,683,917.14 0.19 54.28
118 San Diego CA 92154 6,700,000 6,671,562.47 0.19 54.47
119 Tallahassee FL 32301 6,675,000 6,656,983.36 0.19 54.66
120 Dublin GA 31021 6,600,000 6,594,695.89 0.19 54.85
121 Bradenton FL 34209 6,600,000 6,592,324.44 0.19 55.04
- ------------------------------------------------------------------------------------------------------------------------------------
122 Columbus OH 43235 6,600,000 6,584,429.79 0.19 55.23
123 Lubbock TX 79416 6,600,000 6,583,249.29 0.19 55.42
124 San Diego CA 92154 6,600,000 6,582,428.06 0.19 55.61
125 Battle Creek MI 49015 6,600,000 6,574,953.93 0.19 55.80
126 Charlotte NC 28204 6,600,000 6,555,555.55 0.19 55.98
- ------------------------------------------------------------------------------------------------------------------------------------
127 Carrboro NC 27510 6,552,000 6,547,029.36 0.19 56.17
128 Lynchburg VA 24504 6,500,000 6,493,025.24 0.19 56.36
129 Oceanside CA 92056 6,500,000 6,474,751.79 0.19 56.55
130 Los Angeles CA 90020 6,480,000 6,458,862.87 0.19 56.73
131 Greenville SC 29615 6,418,000 6,402,356.16 0.18 56.92
- ------------------------------------------------------------------------------------------------------------------------------------
132 Louisburg NC 27549 6,400,000 6,395,007.39 0.18 57.10
133 Millville NJ 08332 6,400,000 6,381,293.31 0.18 57.28
134 Silver Spring MD 20910 6,375,000 6,350,417.94 0.18 57.47
135 Alexandria VA 22310 6,333,000 6,322,891.20 0.18 57.65
136 Madison WI 53704 6,320,000 6,320,000.00 0.18 57.83
- ------------------------------------------------------------------------------------------------------------------------------------
137 Montebello NY 10901 6,300,000 6,295,095.15 0.18 58.01
138 Keyport NJ 07735 6,300,000 6,294,961.98 0.18 58.19
139 Summit NJ 07836 6,300,000 6,276,579.44 0.18 58.37
140 Houston TX 77478 6,259,631 6,251,342.00 0.18 58.55
141 Olney MD 20832 6,250,000 6,244,629.40 0.18 58.73
- ------------------------------------------------------------------------------------------------------------------------------------
142 Sunrise FL 33304 6,200,000 6,200,000.00 0.18 58.91
143 Rialto CA 92376 6,200,000 6,190,931.25 0.18 59.09
144 Daly City CA 94014 6,200,000 6,177,199.24 0.18 59.27
145 Stonington CT 06355 6,200,000 6,163,226.67 0.18 59.44
146 Brooklyn NY 11217 6,150,000 6,123,872.54 0.18 59.62
- ------------------------------------------------------------------------------------------------------------------------------------
147 Chardon OH 44024 6,100,000 6,077,175.58 0.17 59.80
148 Columbus OH 43215 6,100,000 6,073,664.24 0.17 59.97
149 Sunrise FL 33321 6,000,000 5,993,027.80 0.17 60.14
150 Menominee MI 49858 Group C 6,000,000 5,989,329.78 0.17 60.32
151 Toms River NJ 08753 6,000,000 5,984,430.12 0.17 60.49
- ------------------------------------------------------------------------------------------------------------------------------------
152 Cabin John MD 20818 6,000,000 5,983,970.74 0.17 60.66
153 Vernon CT 06066 6,000,000 5,982,462.46 0.17 60.83
154 Mount Holly NJ 08060 6,000,000 5,982,208.81 0.17 61.00
155 Washington DC 20036 5,800,000 5,795,439.34 0.17 61.17
156 Darien CT 06820 5,800,000 5,792,389.77 0.17 61.34
- ------------------------------------------------------------------------------------------------------------------------------------
157 Chino Hills CA 91709 5,800,000 5,785,128.07 0.17 61.50
158 South River NJ 08882 5,800,000 5,784,398.59 0.17 61.67
159 LaGrange GA 30241 5,795,490 5,774,542.54 0.17 61.84
160 Encino CA 91316 5,735,450 5,727,244.22 0.16 62.00
161 Plano TX 75074 5,715,000 5,707,136.81 0.16 62.17
- ------------------------------------------------------------------------------------------------------------------------------------
162 Richmond VA 23220 5,700,000 5,685,607.37 0.16 62.33
163 Romulus MI 48174 5,700,000 5,678,693.80 0.16 62.49
164 Wellington FL 33414 5,600,000 5,585,217.47 0.16 62.65
165 La Grange Park IL 60526 5,600,000 5,575,834.45 0.16 62.81
166 Winston-Salem NC 27106 5,520,000 5,502,009.30 0.16 62.97
- ------------------------------------------------------------------------------------------------------------------------------------
167 Bethlehem PA 18018 5,500,000 5,493,855.16 0.16 63.13
168 Longview TX 75605 5,486,000 5,486,000.00 0.16 63.29
169 Clayton WI 54956 Group D 5,500,000 5,467,635.82 0.16 63.45
170 Austin TX 78758 5,415,000 5,394,496.51 0.16 63.60
171 Newburgh NY 12550 5,400,000 5,394,205.59 0.16 63.76
- ------------------------------------------------------------------------------------------------------------------------------------
172 New York NY 10012 5,400,000 5,382,520.27 0.15 63.91
173 Beacon Falls CT 06403 5,400,000 5,377,345.73 0.15 64.07
174 Tampa FL 33613 5,360,000 5,355,892.91 0.15 64.22
175 Metairie LA 70001 5,360,000 5,355,527.84 0.15 64.37
176 Washington DC 20008 5,350,000 5,350,000.00 0.15 64.53
- ------------------------------------------------------------------------------------------------------------------------------------
177 Greer SC 29650 5,390,000 5,349,731.63 0.15 64.68
178 San Diego CA 92103 5,336,000 5,331,911.30 0.15 64.83
179 Whitpain Township PA 19422 5,300,000 5,292,378.31 0.15 64.99
180 Matthews NC 28105 Group B 5,300,000 5,277,025.94 0.15 65.14
181 Bristol TN 37620 5,300,000 5,271,218.92 0.15 65.29
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<CAPTION>
Interest Original Remaining
Control Mortgage Administrative Accrual Amortization Interest-Only Interest-Only
No. Rate (%) Cost Rate (%) Method Type Period (Mos.) Period (Mos.)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
112 7.0510% 0.0962% Actual/360 Amortizing Balloon 0 0
113 7.0600 0.0962 30/360 Amortizing Balloon 0 0
114 7.0000 0.1462 Actual/360 Amortizing (ARD) 0 0
115 7.1350 0.0962 Actual/360 Amortizing Balloon 0 0
116 7.2900 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
117 7.6270 0.0962 Actual/360 Amortizing Balloon 0 0
118 7.5710 0.0962 Actual/360 Amortizing Balloon 0 0
119 6.9400 0.1462 Actual/360 Amortizing (ARD) 0 0
120 7.1000 0.0962 Actual/360 Amortizing Balloon 0 0
121 7.3750 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
122 7.2400 0.1462 30/360 Amortizing (ARD) 0 0
123 7.3000 0.0962 Actual/360 Amortizing Balloon 0 0
124 7.0200 0.0962 Actual/360 Amortizing (ARD) 0 0
125 7.4500 0.0962 30/360 Amortizing (ARD) 0 0
126 7.5000 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
127 7.3900 0.0962 Actual/360 Fully Amortizing 0 0
128 7.8750 0.0962 Actual/360 Amortizing Balloon 0 0
129 7.0700 0.0962 Actual/360 Fully Amortizing 0 0
130 7.0710 0.0962 Actual/360 Amortizing Balloon 0 0
131 7.3000 0.1562 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
132 7.2500 0.0962 Actual/360 Amortizing Balloon 0 0
133 7.6250 0.0962 Actual/360 Amortizing Balloon 0 0
134 7.1100 0.0962 Actual/360 Amortizing Balloon 0 0
135 7.1500 0.0962 30/360 Amortizing Balloon 0 0
136 7.0900 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
137 7.2600 0.0962 Actual/360 Amortizing Balloon 0 0
138 7.1250 0.0962 Actual/360 Amortizing Balloon 0 0
139 7.2800 0.0962 Actual/360 Fully Amortizing 0 0
140 9.1200 0.0962 30/360 Fully Amortizing 0 0
141 6.7600 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
142 7.3000 0.0962 Actual/360 Interest-Only then Amortizing Balloon 60 56
143 6.9600 0.0962 Actual/360 Amortizing (ARD) 0 0
144 7.3300 0.1712 Actual/360 Amortizing Balloon 0 0
145 7.4200 0.0962 30/360 Fully Amortizing 0 0
146 8.0000 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
147 7.2500 0.0962 Actual/360 Amortizing Balloon 0 0
148 7.9000 0.0962 Actual/360 Amortizing Balloon 0 0
149 7.3800 0.1462 Actual/360 Amortizing Balloon 0 0
150 7.6250 0.0962 Actual/360 Amortizing Balloon 0 0
151 7.1700 0.0962 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
152 7.0000 0.1462 Actual/360 Amortizing Balloon 0 0
153 7.6250 0.0962 Actual/360 Amortizing Balloon 0 0
154 7.5530 0.0962 Actual/360 Amortizing Balloon 0 0
155 7.2100 0.0962 Actual/360 Amortizing Balloon 0 0
156 7.4000 0.1462 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
157 7.2400 0.0962 Actual/360 Amortizing (ARD) 0 0
158 6.9600 0.0962 Actual/360 Fully Amortizing 0 0
159 7.3750 0.0962 30/360 Amortizing Balloon 0 0
160 7.0510 0.0962 Actual/360 Amortizing Balloon 0 0
161 7.2100 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
162 7.3300 0.1562 Actual/360 Amortizing (ARD) 0 0
163 7.3400 0.0962 Actual/360 Amortizing Balloon 0 0
164 7.0700 0.1462 Actual/360 Amortizing (ARD) 0 0
165 7.4940 0.0962 Actual/360 Amortizing Balloon 0 0
166 7.0750 0.0962 30/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
167 7.6250 0.0962 Actual/360 Amortizing Balloon 0 0
168 8.1400 0.0962 Actual/360 Interest-Only then Amortizing (ARD) 23 13
169 7.4375 0.0962 Actual/360 Fully Amortizing 0 0
170 7.3750 0.0962 Actual/360 Amortizing Balloon 0 0
171 7.8750 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
172 7.1100 0.0962 Actual/360 Amortizing (ARD) 0 0
173 7.6250 0.0962 Actual/360 Fully Amortizing 0 0
174 7.3400 0.1462 Actual/360 Amortizing Balloon 0 0
175 6.9100 0.0962 Actual/360 Amortizing Balloon 0 0
176 7.5000 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
177 7.3000 0.0962 Actual/360 Fully Amortizing 0 0
178 7.3400 0.1462 Actual/360 Amortizing Balloon 0 0
179 7.0300 0.1462 Actual/360 Amortizing (ARD) 0 0
180 7.8750 0.0962 Actual/360 Amortizing Balloon 0 0
181 7.8750 0.0962 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Original Remaining
Term to Term to Original Remaining
Control Maturity Maturity Amortization Amortization Origination Maturity Balloon
No. (Mos.) (Mos.) Term (Mos.) Term (Mos.) Date or ARD Balance ($) Property Type
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
112 120 118 360 358 2/9/98 3/1/08 $ 5,982,969 Multifamily
113 120 119 360 359 3/30/98 4/1/08 5,843,452 Multifamily
114 120 119 360 359 2/13/98 4/1/08 5,888,113 Multifamily
115 120 117 360 357 1/22/98 2/1/08 5,904,970 Multifamily
116 120 118 360 358 2/27/98 3/1/08 5,889,897 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
117 120 117 360 357 1/15/98 2/1/08 5,934,760 Multifamily
118 120 114 360 354 10/24/97 11/1/07 5,927,801 Multifamily
119 120 117 360 357 1/12/98 2/1/08 5,809,505 Office
120 120 119 360 359 3/5/98 4/1/08 5,772,492 Retail - Anchored
121 120 119 300 299 3/31/98 4/1/08 5,342,060 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
122 60 57 360 357 1/21/98 2/1/03 6,228,358 Retail - Unanchored
123 120 117 360 357 1/13/98 2/1/08 5,798,365 Multifamily
124 120 117 360 357 1/8/98 2/1/08 5,756,396 Multifamily
125 240 235 360 355 11/19/97 12/1/17 3,877,239 Retail - Anchored
126 120 114 300 294 10/1/97 11/1/07 5,359,003 Office
- -------------------------------------------------------------------------------------------------------------------------------
127 360 359 360 359 3/3/98 4/1/28 655,651 Multifamily
128 120 119 300 299 3/31/98 4/1/08 5,339,898 Hotel - Full Service
129 300 297 300 297 1/15/98 2/1/23 347,013 Retail - Anchored
130 120 116 360 356 12/23/97 1/1/08 5,660,160 Multifamily
131 120 117 360 357 2/18/98 2/1/08 5,649,365 Office
- -------------------------------------------------------------------------------------------------------------------------------
132 240 239 360 359 3/24/98 4/1/18 3,992,899 Retail - Anchored
133 120 116 360 356 12/30/97 1/1/08 5,669,732 Multifamily
134 180 175 360 355 11/20/97 12/1/12 4,901,207 Retail - Unanchored
135 120 118 360 358 2/24/98 3/1/08 5,463,740 Multifamily
136 120 120 360 360 4/6/98 5/1/08 5,526,794 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
137 120 119 360 359 3/12/98 4/1/08 5,533,122 Office
138 180 179 360 359 4/1/98 4/1/13 4,848,844 Multifamily
139 360 355 360 355 11/19/97 12/1/27 596,147 Multifamily
140 252 251 252 251 3/19/98 4/1/19 - CTL
141 192 191 360 359 3/18/98 4/1/14 4,562,683 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
142 132 128 300 300 12/17/97 1/1/09 5,590,719 Office
143 120 118 360 358 2/17/98 3/1/08 5,403,353 Multifamily
144 120 115 360 355 10/31/97 12/1/07 5,452,872 Multifamily
145 298 293 298 293 11/25/97 10/1/22 - CTL
146 120 116 300 296 12/17/97 1/1/08 5,067,055 Office
- -------------------------------------------------------------------------------------------------------------------------------
147 120 115 360 355 11/6/97 12/1/07 5,353,916 Retail - Anchored
148 84 80 300 296 12/22/97 1/1/05 5,433,709 Hotel - Full Service
149 120 119 300 299 3/24/98 4/1/08 4,857,155 Industrial
150 120 119 240 239 3/6/98 4/1/08 4,177,874 Industrial
151 180 177 360 357 1/22/98 2/1/13 4,622,411 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
152 120 117 360 357 1/30/98 2/1/08 5,230,328 Retail - Unanchored
153 120 116 360 356 12/10/97 1/1/08 5,315,373 Multifamily
154 120 116 360 356 12/31/97 1/1/08 5,305,881 Retail - Anchored
155 120 119 360 359 3/27/98 4/1/08 5,087,393 Office
156 120 118 360 358 2/10/98 3/1/08 5,113,120 Office
- -------------------------------------------------------------------------------------------------------------------------------
157 180 177 360 357 1/15/98 2/1/13 4,482,308 Retail - Anchored
158 360 357 360 357 1/22/98 2/1/28 475,415 Multifamily
159 239 236 296 293 1/26/98 1/1/18 2,041,228 CTL
160 120 118 360 358 2/9/98 3/1/08 5,010,596 Multifamily
161 120 118 360 358 2/25/98 3/1/08 5,013,593 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
162 120 117 360 357 1/29/98 2/1/08 5,011,513 Retail - Anchored
163 180 177 300 297 1/21/98 2/1/13 3,666,819 Hotel - Limited Service
164 120 117 360 357 1/21/98 2/1/08 4,890,632 Industrial
165 120 114 360 354 10/15/97 11/1/07 4,945,057 Multifamily
166 120 116 360 356 12/23/97 1/1/08 4,745,168 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
167 180 179 300 299 3/19/98 4/1/13 3,596,484 Hotel - Limited Service
168 120 110 360 360 6/16/97 7/1/07 5,069,507 Multifamily
169 180 178 180 178 2/9/98 3/1/13 116,221 Industrial
170 120 116 330 326 12/17/97 1/1/08 4,596,799 Retail - Anchored
171 120 119 300 299 3/26/98 4/1/08 4,436,224 Hotel - Full Service
- -------------------------------------------------------------------------------------------------------------------------------
172 120 116 360 356 12/22/97 1/1/08 4,721,619 Office
173 360 354 360 354 10/23/97 11/1/27 576,573 Multifamily
174 120 119 360 359 3/19/98 4/1/08 4,717,243 Multifamily
175 120 119 360 359 3/12/98 4/1/08 4,664,385 Multifamily
176 120 120 300 300 4/3/98 5/1/08 4,347,319 Hotel - Limited Service
- -------------------------------------------------------------------------------------------------------------------------------
177 240 236 240 236 12/31/97 1/1/18 187,047 Retail - Anchored
178 120 119 360 359 2/27/98 4/1/08 4,696,121 Retail - Anchored
179 120 118 360 358 2/10/98 3/1/08 4,627,605 Office
180 120 116 300 296 12/31/97 1/1/08 4,351,009 Hotel - Limited Service
181 240 237 240 237 1/16/98 2/1/18 214,352 Health Care - Skilled Nursing
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Annual
Control Debt Net Appraised
No. Prepayment Provisions Service ($) Cash Flow ($) DSCR (x) Value ($)
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
112 L(4),D(5.67),O(.33) $ 549,576 $ 769,380 1.40x $ 9,480,000
113 L(2.08),D(7.92) 546,179 724,626 1.33 8,400,000
114 L(4),YM1%(5.75),O(.25) 538,895 686,633 1.27 8,550,000
115 L(4),D(5.83),O(.17) 546,259 713,796 1.31 8,700,000
116 L(4),D(5.75),O(.25) 550,653 747,466 1.36 9,100,000
- ------------------------------------------------------------------------------------------------------------------------------
117 L(4),D(5.83),O(.17) 569,177 760,200 1.34 9,035,000
118 L(4),D(5.83),O(.17) 566,082 678,499 1.20 8,725,000
119 L(7),D(2.75),O(.25) 529,683 781,237 1.47 9,100,000
120 L(4),D(5.5),O(.5) 532,249 694,236 1.30 9,200,000
121 L(2),D(7.75),O(.25) 578,857 737,823 1.27 8,800,000
- ------------------------------------------------------------------------------------------------------------------------------
122 YM1%(4.75),O(.25) 539,747 655,532 1.21 8,800,000
123 L(4),D(5.5),O(.5) 542,972 745,477 1.37 8,300,000
124 L(2),D(7.75),O(.25) 527,984 695,626 1.32 8,325,000
125 L(4),D(15.5),O(.5) 551,069 713,797 1.30 8,380,000
126 L(4),YM1%(5.5),O(.5) 585,281 732,712 1.25 8,575,000
- ------------------------------------------------------------------------------------------------------------------------------
127 L(4),D(26) 543,840 682,858 1.26 8,400,000
128 L(4),YM1%(5.75),O(.25) or D(Borr) 595,572 894,459 1.50 11,100,000
129 L(7),YM1%(5),5(5),4(2),3(2),2(2),1(1),O(1) or D(Borr) 554,776 769,284 1.39 9,000,000
130 L(4),D(5.83),O(.17) 521,052 818,656 1.57 8,100,000
131 L(4),D(5.75),O(.25) 527,835 675,647 1.28 8,650,000
- ------------------------------------------------------------------------------------------------------------------------------
132 L(4),D(16) 523,911 657,335 1.25 8,000,000
133 L(4),YM1%(5.75),O(.25) 543,586 707,128 1.30 9,000,000
134 L(7),YM1%(6),O(2) or D(Borr) 514,620 725,011 1.41 8,500,000
135 L(2.17),D(7.33),O(.5) 513,282 646,677 1.26 8,500,000
136 L(4),D(5.75),O(.25) 509,158 681,562 1.34 8,000,000
- ------------------------------------------------------------------------------------------------------------------------------
137 L(4),D(5.75),O(.25) 516,238 681,048 1.32 8,400,000
138 L(1),YM1%(13.5),O(.5) 509,331 620,760 1.22 7,900,000
139 L(4),YM1%(6),1(19.75),O(.25) or D(Borr) 517,264 870,127 1.68 9,250,000
140 L(8),YM1(13) or D(Borr) 670,346 670,346 NAP 6,400,000
141 L(5),D(10),O(1) 486,947 705,724 1.45 9,100,000
- ------------------------------------------------------------------------------------------------------------------------------
142 L(4),YM1%(6.75),O(.25) or D(Borr) 540,167 (2) 831,356 1.54 12,400,000
143 L(4),D(5.75),O(.25) 492,988 696,605 1.41 7,750,000
144 L(4),D(5.5),O(.5) 511,582 628,221 1.23 8,070,000
145 L(8),D(16.83) 547,211 573,044 NAP 6,400,000
146 L(4),D(5.75),O(.25) 569,600 807,517 1.42 8,875,000
- ------------------------------------------------------------------------------------------------------------------------------
147 L(4),YM1%(5.75),O(.25) 499,353 650,265 1.30 8,000,000
148 L(2.42),YM1%(4.08),O(.5) or D(Borr) 560,129 918,633 1.64 12,900,000
149 L(4),D(5.75),O(.25) 526,466 727,554 1.38 8,000,000
150 L(4),D(5.75),O(.25) 585,543 849,475 1.45 8,625,000
151 L(3),D(11.5),O(.5) 487,266 707,236 1.45 7,500,000
- ------------------------------------------------------------------------------------------------------------------------------
152 L(4),D(5.5),O(.5) 479,018 662,700 1.38 7,670,000
153 L(4),YM1%(4),O(2) 509,612 772,840 1.52 9,500,000
154 L(4),YM1%(5.5),O(.5) 506,050 661,646 1.31 8,100,000
155 L(4),D(5.75),O(.25) 472,908 617,228 1.31 8,000,000
156 L(4),D(5.75),O(.25) 481,896 675,027 1.40 8,000,000
- ------------------------------------------------------------------------------------------------------------------------------
157 L(7),D(7.75),O(.25) 474,323 749,640 1.58 9,600,000
158 L(4),YM1%(6),1(19.75),O(.25) 461,182 583,805 1.27 7,250,000
159 L(8),D(11.917) 510,694 520,908 NAP 6,050,000
160 L(4),D(5.67),O(.33) 460,257 616,663 1.34 7,710,000
161 L(4),D(5.75),O(.25) 465,977 707,496 1.52 7,750,000
- ------------------------------------------------------------------------------------------------------------------------------
162 L(4),D(5.75),O(.25) 470,326 637,767 1.36 7,300,000
163 L(4),YM1%(10.75),O(.25) or D(Borr) 498,373 716,224 1.44 8,800,000
164 L(4),YM1%(5.5),O(.5) 450,247 691,944 1.54 9,200,000
165 L(4),D(5.83),O(.17) 469,596 731,880 1.56 7,100,000
166 L(4),YM1%(5.5),O(.5) 444,038 604,258 1.36 6,900,000
- ------------------------------------------------------------------------------------------------------------------------------
167 L(7),YM1%(7.75),O(.25) or D(Borr) 493,113 759,139 1.54 7,400,000
168 L(2),YM1%(3),5(1),4(1),3(1),2(1),1(.5),O(.5) 489,492 (2) 609,938 1.25 7,000,000
169 L(6),D(8.75),O(.25) 609,486 775,936 1.27 8,600,000
170 L(3),YM5%(2),5(1),4(1),3(1),2(1),1(.75),O(.25) 460,301 581,312 1.26 7,250,000
171 L(4),D(6) 494,783 690,479 1.40 7,750,000
- ------------------------------------------------------------------------------------------------------------------------------
172 L(4),D(5.75),O(.25) 435,914 607,313 1.39 7,200,000
173 L(10),YM1%(10),1(10) 458,650 688,382 1.50 7,500,000
174 L(4),D(5.5),O(.5) 442,709 575,098 1.30 6,700,000
175 L(2),D(7.50),O(.5) 424,042 630,618 1.49 6,700,000
176 L(4),5(1),4(1),3(1),2(1),1(1.5),O(.5) or D(Borr) 474,432 715,121 1.51 7,550,000
- ------------------------------------------------------------------------------------------------------------------------------
177 L(10),YM1%(9.5),O(.5) or D(Borr) 513,177 660,482 1.29 7,190,000
178 L(4),YM1%(5.75),O(.25) 440,727 549,592 1.25 6,670,000
179 L(4),D(5.75),O(.25) 424,415 578,789 1.36 9,175,000
180 L(4),D(5.75),O(.25) 485,620 736,717 1.52 7,075,000
181 L(7),D(12.75),O(.25) 527,039 724,500 1.37 6,700,000
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten
Hospitality Sq. Ft., Loan per
Cut-off Scheduled Average Units Sq. Ft., Units
Control Appraisal Date Maturity Date Daily Year Year Bed, Pad Bed, Pad Occupancy
No. Year LTV (%) LTV (%) Rate ($) Built Renovated or Room or Room ($) Percentage (%)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
112 1997 72.1% 63.1% 1971 N/A 147 Units $ 46,588.38 99.0%
113 1998 80.9 69.6 1984 N/A 200 Units 34,000.00 93.3
114 1998 78.9 68.9 1988 N/A 128 Units 52,734.38 96.1
115 1997 77.4 67.9 1989 N/A 172 Units 39,244.19 86.6
116 1998 73.5 64.7 1984 N/A 129,855 Sq. Ft. 51.60 87.0
- --------------------------------------------------------------------------------------------------------------------------------
117 1997 74.0 65.7 1997 N/A 88 Units 76,136.36 94.3
118 1997 76.5 67.9 1989 N/A 128 Units 52,343.75 98.0
119 1997 73.2 63.8 1960,1983 1997 144,783 Sq. Ft. 46.10 98.8
120 1997 71.7 62.7 1971 1992 272,675 Sq. Ft. 24.20 88.0
121 1998 74.9 60.7 1986-1987 N/A 180,240 Sq. Ft. 36.62 96.6
- --------------------------------------------------------------------------------------------------------------------------------
122 1997 74.8 70.8 1984-85 N/A 171,773 Sq. Ft. 38.42 89.5
123 1997 79.3 69.9 1929-77 N/A 224 Units 29,464.29 98.7
124 1997 79.1 69.2 1987 N/A 161 Units 40,993.79 97.5
125 1997 78.5 46.3 1989 N/A 87,035 Sq. Ft. 75.83 97.0
126 1997 76.5 62.5 1929 1996 69,129 Sq. Ft. 95.47 98.6
- --------------------------------------------------------------------------------------------------------------------------------
127 1998 77.9 7.8 1971 N/A 209 Units 31,349.28 88.5
128 1998 58.5 48.1 $56.75 1984 1995 238 Rooms 27,310.92 NAP
129 1997 71.9 3.9 1991 1996 79,424 Sq. Ft. 81.84 93.2
130 1997 79.7 69.9 1972 N/A 218 Units 29,724.77 95.0
131 1997 74.0 65.3 1996,1997 N/A 100,000 Sq. Ft. 64.18 89.4
- --------------------------------------------------------------------------------------------------------------------------------
132 1998 79.9 49.9 1983 1987 155,480 Sq. Ft. 41.16 91.9
133 1997 70.9 63.0 1975 N/A 280 Units 22,857.14 92.1
134 1997 74.7 57.7 1986,1992 N/A 43,629 Sq. Ft. 146.12 95.4
135 1998 74.4 64.3 1962 1990 181 Units 34,988.95 94.0
136 1998 79.0 69.1 1996-1997 N/A 69,252 Sq. Ft. 91.26 100.0
- --------------------------------------------------------------------------------------------------------------------------------
137 1998 74.9 65.9 1989 N/A 69,882 Sq. Ft. 90.15 100.0
138 1998 79.7 61.4 1966 N/A 164 Units 38,414.63 95.1
139 1997 67.9 6.4 1952 N/A 100 Units 63,000.00 100.0
140 1998 NAP 0.0 1994 N/A 46,658 Sq. Ft. 134.16 100.0
141 1997 68.6 50.1 1997 N/A 34,350 Sq. Ft. 181.95 91.1
- --------------------------------------------------------------------------------------------------------------------------------
142 1997 50.0 45.1 1997 N/A 106,910 Sq. Ft. 57.99 100.0
143 1997 79.9 69.7 1987 N/A 180 Units 34,444.44 96.0
144 1997 76.6 67.6 1987 N/A 89 Units 69,662.92 97.8
145 1997 NAP 0.0 1997 N/A 46,449 Sq. Ft. 133.48 100.0
146 1997 69.0 57.1 1930 1989 85,718 Sq. Ft. 71.75 100.0
- --------------------------------------------------------------------------------------------------------------------------------
147 1997 76.0 66.9 1972 1988 148,955 Sq. Ft. 40.95 98.1
148 1997 47.1 42.1 62.40 1965 1997 240 Rooms 25,416.67 NAP
149 1998 74.9 60.7 1989, 1996 N/A 177,926 Sq. Ft. 33.72 98.9
150 1998 69.4 48.4 1985,1988,1995 N/A 440,000 Sq. Ft. 13.64 100.0
151 1997 79.8 61.6 1960s 1994-1997 212 Units 28,301.89 93.0
- --------------------------------------------------------------------------------------------------------------------------------
152 1997 78.0 68.2 1982,1992 N/A 41,894 Sq. Ft. 143.22 99.1
153 1997 63.0 56.0 1965 1990 260 Units 23,076.92 98.0
154 1997 73.9 65.5 1991 N/A 84,649 Sq. Ft. 70.88 94.3
155 1998 72.4 63.6 1971 1997 43,392 Sq. Ft. 133.67 100.0
156 1998 72.4 63.9 1964,85 1994 60,016 Sq. Ft. 96.64 100.0
- --------------------------------------------------------------------------------------------------------------------------------
157 1997 60.3 46.7 1990 N/A 40,999 Sq. Ft. 141.47 100.0
158 1998 79.8 6.6 1974 N/A 140 Units 41,428.57 91.4
159 1997 NAP 33.7 1985 1996 61,331 Sq. Ft. 94.50 100.0
160 1997 74.3 65.0 1972 1995 130 Units 44,118.85 100.0
161 1998 73.6 64.7 1988 N/A 66,229 Sq. Ft. 86.29 97.5
- --------------------------------------------------------------------------------------------------------------------------------
162 1998 77.9 68.7 1985 N/A 103,308 Sq. Ft. 55.17 87.4
163 1997 64.5 41.7 70.00 1988 N/A 136 Rooms 41,911.76 NAP
164 1997 60.7 53.2 1982-97 N/A 171,510 Sq. Ft. 32.65 96.7
165 1997 78.5 69.7 1957 1997 264 Units 21,212.12 86.4
166 1997 79.7 68.8 1985 N/A 184 Units 30,000.00 92.4
- --------------------------------------------------------------------------------------------------------------------------------
167 1998 74.2 48.6 67.00 1992 1997 124 Rooms 44,354.84 NAP
168 1997 78.4 72.4 1974,1977 N/A 344 Units 15,947.67 91.3
169 1997 63.6 1.4 1992,1994,1997 N/A 387,500 Sq. Ft. 14.19 100.0
170 1997 74.4 63.4 1978 N/A 115,343 Sq. Ft. 46.95 95.0
171 1998 69.6 57.2 54.82 1974 1990 166 Rooms 32,530.12 NAP
- --------------------------------------------------------------------------------------------------------------------------------
172 1997 74.8 65.6 1912 1985 58,000 Sq. Ft. 93.10 100.0
173 1997 71.7 7.7 1984 N/A 141 Units 38,297.87 95.0
174 1997 79.9 70.4 1984 N/A 168 Units 31,904.76 95.2
175 1998 79.9 69.6 1972 1995 176 Units 30,454.55 97.2
176 1998 70.9 57.6 78.00 1948 1993 155 Rooms 34,516.13 NAP
- --------------------------------------------------------------------------------------------------------------------------------
177 1997 74.4 2.6 1997 N/A 72,528 Sq. Ft. 74.32 96.7
178 1998 79.9 70.4 1997 N/A 28,000 Sq. Ft. 190.57 100.0
179 1997 57.7 50.4 1981 N/A 81,365 Sq. Ft. 65.14 88.1
180 1997 74.6 61.5 75.00 1995 N/A 92 Rooms 57,608.70 NAP
181 1997 78.7 3.2 1986 1996 130 Beds 40,769.23 96.0
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Tenant
------------------------------------------------------------------------------
Tenant
Control Rent Roll Underwriting Area Leased Lease
No. Date Reserves ($) per Tenant Name (Sq. Ft.) Exp Date
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
112 12/22/97 $328.00 Unit
113 2/25/98 300.00 Unit
114 12/12/97 175.00 Unit
115 12/12/97 238.77 Unit
116 9/20/97 0.23 Sq. Ft. Dollar Cinema 22,275 8/31/08
- ------------------------------------------------------------------------------------------------------------------------------------
117 1/15/98 180.60 Unit
118 10/6/97 483.31 Unit
119 12/24/97 0.17 Sq. Ft. G.S.A. 77,519 1/31/03
120 1/29/98 0.20 Sq. Ft. Belk 60,334 11/10/07
121 3/24/98 0.13 Sq. Ft. Bealls 87,385 4/30/13
- ------------------------------------------------------------------------------------------------------------------------------------
122 12/22/97 0.15 Sq. Ft. Media Play 50,000 1/31/07
123 1/18/98 254.00 Unit
124 10/9/97 284.00 Unit
125 11/1/97 0.43 Sq. Ft. TJ Maxx 23,862 5/15/05
126 2/1/98 0.10 Sq. Ft. Dellinger & Deese 8,322 6/1/02
- ------------------------------------------------------------------------------------------------------------------------------------
127 3/3/98 250.00 Unit
128 NAP 4% of Gross Revenue Room
129 1/1/98 0.22 Sq. Ft. Ralphs 45,000 10/31/06
130 7/31/97 309.67 Unit
131 12/3/97 0.10 Sq. Ft. Gerber 48,000 5/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
132 3/16/98 0.17 Sq. Ft. Wal-Mart 61,070 3/1/13
133 12/10/97 284.00 Unit
134 3/2/98 0.38 Sq. Ft. Duron Paints 4,100 9/1/01
135 1/22/98 226.00 Unit
136 2/19/98 0.10 Sq. Ft. Best Buy 45,792 10/31/16
- ------------------------------------------------------------------------------------------------------------------------------------
137 10/29/97 0.14 Sq. Ft. Barclay's 10,156 5/31/00
138 1/27/98 210.00 Unit
139 9/23/97 200.00 Unit
140 5/1/98 - Sq. Ft. Q Club, Inc 46,658 3/31/19
141 3/17/98 0.15 Sq. Ft. CVS 10,120 1/31/18
- ------------------------------------------------------------------------------------------------------------------------------------
142 0 - Sq. Ft. United HealthCare 106,910 9/30/07
143 12/17/97 226.54 Unit
144 10/1/97 275.28 Unit
145 5/1/98 0.15 Sq. Ft. The Great Atlantic & Pacific Tea Company 46,449 10/31/22
146 2/8/98 0.20 Sq. Ft. St. Joseph's Children's Services 63,425 3/30/00
- ------------------------------------------------------------------------------------------------------------------------------------
147 9/16/97 0.10 Sq. Ft. Quality Farm and Fresh 49,799 10/31/04
148 NAP 4% of Gross Revenue Room
149 3/18/98 0.14 Sq. Ft. Spectramin, Inc. 8,608 6/30/99
150 0 0.10 Sq. Ft. K & K Warehousing, Inc. 225,000 3/5/08
151 10/23/97 225.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
152 1/23/98 0.19 Sq. Ft. Bethesda Co-Op 4,961 5/31/99
153 9/1/97 250.00 Unit
154 12/8/97 0.10 Sq. Ft. Edwards Super Food 43,410 4/30/06
155 2/4/98 0.30 Sq. Ft. Assoc Rsch Libr 9,200 2/26/04
156 1/23/98 0.21 Sq. Ft. Rogers Casey 37,969 5/23/04
- ------------------------------------------------------------------------------------------------------------------------------------
157 10/3/97 0.30 Sq. Ft. Albertson's (Shadow) 42,630 NAV
158 1/21/98 250.00 Unit
159 5/1/98 0.08 Sq. Ft. Kroger Company 61,331 1/31/18
160 12/22/97 300.00 Unit
161 1/31/98 0.15 Sq. Ft. Wickes Furniture Companies, Inc./Wickes Furniture 50,000 1/31/03
- ------------------------------------------------------------------------------------------------------------------------------------
162 1/19/98 0.15 Sq. Ft. Food Lion 33,450 3/23/10
163 NAP 4% of Gross Revenue Room
164 1/31/98 0.20 Sq. Ft. PYTLLC 19,285 NAV
165 8/5/97 251.34 Unit
166 10/25/97 290.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
167 NAP 4% of Gross Revenue Room
168 6/5/97 175.00 Unit
169 0 0.06 Sq. Ft. Warehouse Specialists, Inc. 387,500 3/1/13
170 3/13/98 0.14 Sq. Ft. Weiner's Stores, Inc. 27,000 8/31/03
171 NAP 4% of Gross Revenue Room
- ------------------------------------------------------------------------------------------------------------------------------------
172 12/1/97 0.30 Sq. Ft. Tri Pod 7,850 8/31/12
173 9/18/97 306.00 Unit
174 12/12/97 275.00 Unit
175 2/25/98 265.00 Unit
176 NAP 4% of Gross Revenue Room
- ------------------------------------------------------------------------------------------------------------------------------------
177 3/1/98 0.10 Sq. Ft. Bi-Lo 45,876 6/1/17
178 1/1/98 0.10 Sq. Ft. Whole Foods Market 28,000 1/31/12
179 12/4/97 0.22 Sq. Ft. Volt Information Sciences, Inc. 39,812 7/31/01
180 NAP 4% of Gross Revenue Room
181 8/14/97 250.00 Bed
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2nd Largest Tenant 3rd Largest Tenant
--------------------------------------------------------- -------------------------------------------------------------
Tenant Tenant
Control Area Leased Lease Area Leased Lease Control
No. Tenant Name (Sq. Ft.) Exp Date Tenant Name (Sq. Ft.) Exp Date No.
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
112 112
113 113
114 114
115 115
116 Texas Dept. of Human Services 16,048 8/31/05 Cloth World #1497 16,000 3/31/04 116
- ------------------------------------------------------------------------------------------------------------------------------------
117 117
118 118
119 Florida Housing Finance Corporation 35,666 5/31/05 Florida Department of Envionmental Affairs 10,242 8/14/99 119
120 J.C. Penney 34,364 8/31/98 Goody's Family Clothing 26,329 4/1/02 120
121 Scottys 54,825 7/31/07 Curtes Hull 4,925 10/31/98 121
- ------------------------------------------------------------------------------------------------------------------------------------
122 Comp USA 31,230 11/30/03 Powerhouse Gym 14,886 1/31/07 122
123 123
124 124
125 Old Country Buffet 12,000 12/31/09 1/2 Off Cards 12,000 1/15/08 125
126 MarketWise, Inc. 5,016 1/1/02 Legg Mason Wood Walker 4,577 1/1/02 126
- ------------------------------------------------------------------------------------------------------------------------------------
127 127
128 128
129 Tutor Time - Pad A 7,040 11/30/05 Hollywood Video - Pad D 7,000 9/30/06 129
130 130
131 Insty Prints 9,000 10/31/02 Southeastern Telecom 6,350 12/14/02 131
- ------------------------------------------------------------------------------------------------------------------------------------
132 Food Lion 30,720 5/1/15 Eckerd Drug 9,600 9/26/98 132
133 133
134 Southland (7-11) 4,050 12/31/01 Popeyes 3,000 12/31/01 134
135 135
136 Office Max 23,460 8/31/17 136
- ------------------------------------------------------------------------------------------------------------------------------------
137 Dr. M.B. Schachter MD PC 9,671 3/31/02 Neuromedical Systems 7,675 5/31/00 137
138 138
139 139
140 140
141 Blockbuster Video 6,140 9/30/02 Chicken Out Rotisserie (A-15 & A-16) 3,635 9/30/07 141
- ------------------------------------------------------------------------------------------------------------------------------------
142 142
143 143
144 144
145 145
146 St. Mary's Hospital of Brooklyn 9,400 2/28/01 Diagnostic Health Services, Inc. (DHS) 6,814 10/31/05 146
- ------------------------------------------------------------------------------------------------------------------------------------
147 Giant Eagle 40,080 6/30/09 Carlisle's/Peebles 25,033 1/31/04 147
148 148
149 Bret's Vette 6,675 8/31/00 Monpak, Inc. 5,625 6/30/99 149
150 Great Lakes Pulp & Fibre 215,000 11/30/16 N/A 150
151 151
- ------------------------------------------------------------------------------------------------------------------------------------
152 Market on the Boulevard 3,830 10/31/06 CTX Corp. 3,671 9/30/01 152
153 153
154 Thrift Drug Store 7,200 3/31/11 Social Security Administration 6,839 9/17/06 154
155 Oldham & Partners 7,529 1/10/02 Optasco 6,220 8/31/02 155
156 The Progressive Corporation 7,970 6/30/03 Miles 33 3,742 6/30/03 156
- ------------------------------------------------------------------------------------------------------------------------------------
157 Wells Fargo 4,000 11/18/10 Petco 3,600 5/31/99 157
158 158
159 159
160 160
161 El Fenix Corporation/El Fenix 6,362 3/31/02 Eye Care Centers of America, Inc./Eye Masters 4,500 9/30/98 161
- ------------------------------------------------------------------------------------------------------------------------------------
162 Victory Fitness 11,000 9/14/99 Cort Furniture Rental Corp. 6,500 5/15/00 162
163 163
164 Arpac 9,800 NAV Jack B. Harper Contractor 6,000 NAV 164
165 165
166 166
- ------------------------------------------------------------------------------------------------------------------------------------
167 167
168 168
169 169
170 Office Depot 23,925 3/31/99 Fitness Plus of Austin 10,213 5/31/99 170
171 171
- ------------------------------------------------------------------------------------------------------------------------------------
172 Quant Trading 3,326 9/30/04 White-Howlett 3,200 1/31/02 172
173 173
174 174
175 175
176 176
- ------------------------------------------------------------------------------------------------------------------------------------
177 Revco 8,450 6/1/12 Fatz CafT 7,000 10/1/12 177
178 178
179 United States FID & Guarantee 15,486 5/31/02 Disciplinary Board-Supreme Court 8,180 11/30/02 179
180 180
181 181
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
Control
No. Property Name Address
==========================================================================================================================
<S> <C> <C>
182 Alta Vista Gardens Apartments 1425 North Alta Vista Blvd.
183 Kato Road 48835-48881 Kato Road
184 Hearthside 8214 Wilson Drive
185 Hampton Inn - Concord 612 Dicken Place
186 Reddmans Pier Apartments 5826 Reddman Road
- --------------------------------------------------------------------------------------------------------------------------
187 Budgetel Inn 3701 SW 38th Avenue
188 Hillside Village Center E/S Route 111
189 Kroger Huntsville 8404 South Memorial Parkway
190 Q Club Las Vegas 601 South Rainbow Blvd
- --------------------------------------------------------------------------------------------------------------------------
191 Thrifty's (Roll-Up) Various
191a Thrifty's Neighborhood Center (South Pasadena) 900-914 Fair Oaks Avenue
191b 2421 West Rosecrans Avenue (Thrifty's-Gardena) 2421 West Rosecrans Avenue
191c Thrifty Drug Store No. 650 (Thrifty's Calexico) 244 E. 3rd Street
191d 72 Springstowne Center (Thrifty's Vallejo) 72 Springtowne Center
- --------------------------------------------------------------------------------------------------------------------------
192 Kelly House 106 St. Philip Street
193 Tiffany Corner Shopping Center NEQ of Cactus Road and 67th Avenue
194 Timbers of Pine Hollow Apartments 2020 Plantation Drive
195 Hampton Inn - Gatlinburg, TN 967 Parkway
- --------------------------------------------------------------------------------------------------------------------------
196 Q Club Tempe 2145 East Baseline Road
197 Agoura Hills Town Center 30105-30135 Agoura Road
198 Foxhill Apartments 1900 South Missouri Street
199 Q Club Jacksonville 1731 Wells Road
200 Southpoint Shopping Center 12855 Gulf Freeway
- --------------------------------------------------------------------------------------------------------------------------
201 Provincial Towers Apartments 34 South Main Street
202 Royal Palms Mobile Home/RV Park 7901 E. Ben White Boulevard
203 K&K Warehousing - 3100 Woleske Rd 3100 Woleske Road
204 Park Plaza - Salem 123-129 South Broadway
205 Fairesta Apartments 3250 Fairesta Street
- --------------------------------------------------------------------------------------------------------------------------
206 Villa Park I 8040 Villa Park Drive
207 Cody's Books 1716 4Th Street
208 Village Faire Shoppes 1100-1198 South Coast Highway
209 South Trust Building 402 Kentucky Avenue
210 South Ridge Apartments 440 West Oak Ridge Road
- --------------------------------------------------------------------------------------------------------------------------
211 Fairfield Inn Shreveport 6245 Westport Avenue
212 Santa Ana Plaza 710-810 South Harbor Blvd
213 Oxford Point 106 Old Lincoln Highway
214 Minges Creek Plaza 5420 Beckley Road
215 TransFlorida Bank Plaza 1347-1671 South University Drive
- --------------------------------------------------------------------------------------------------------------------------
216 Chesapeake Square U.S. Highway No. 13
217 Orchard Plaza Plank Road and Orchard Avenue
218 Sunnyview 4502 Sunnyview Drive
219 Plaza Codorniz 4300 North Miller Road
220 J.P. Morgan Building 109 Royal Palm Way
- --------------------------------------------------------------------------------------------------------------------------
221 Villa Creek Apartments 2601 McBride Lane
222 Seminary Place Shopping Center 9440-9524 Georgia Avenue
223 Vernon Gardens 695 Talcottville Road
224 Kingston Apartments 2701-2731 North Andrews Avenue
225 Glengary Shopping Center 5950-6010 Westerville Road
- --------------------------------------------------------------------------------------------------------------------------
226 1696 and 1700 to 1712 Newport Boulevard 1696 and 1700 to 1712 Newport Boulevard
227 Tarzana Tennis Club Apts. 18440 Hatteras Street
228 Ramada Inn & Suites 1410 South Country Club Drive
229 L.A. Community College 2340 Firestone Boulevard
230 Walgreens Pharmacy (Chicago) NWC West Fullerton Avenue & North Central Avenue
- --------------------------------------------------------------------------------------------------------------------------
231 Karl Plaza Shopping Center 1620 Dublin Granville Road
232 Villa Serrano 201 South Magnolia
233 Kendale Plaza Shopping Center S/E Corner of Lee Avenue and Main Street
234 Sunrise Vista 300 South Val Vista Drive
235 Best Buy (Little Rock) Chenal Parkway & Bowman Road
- --------------------------------------------------------------------------------------------------------------------------
236 Alice Nettell Tower 550 Third Avenue North
237 Seagate Facility 5898 Condor Drive
238 Hunters Crossing 2801 Bill Owens Parkway
239 54-57 South Street 54-57 South Street
240 Hansen Village Apartments 11821 Foothill Boulevard
- --------------------------------------------------------------------------------------------------------------------------
241 Oakwood Apartments 4050 NE 1st Avenue
242 Lake Loft Center 641 West Lake Street
243 5210 Maryland Way Office Building NEC of Maryland Way and Westwood Place
244 Milestone Hopewell Road
245 Fashion Village and East Colonial Shopping Centers 3817 & 3907-3915 East Colonial Drive
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial
No. City State Code Groups Balance ($) Balance ($) Balance Pool Balance
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
182 Los Angeles CA 90046 $ 5,263,000 $ 5,246,083.97 0.15% 65.44%
183 Fremont CA 94539 5,200,000 5,183,443.80 0.15 65.59
184 Ralston NE 68127 5,120,000 5,120,000.00 0.15 65.74
185 Concord NC 28025 Group B 5,100,000 5,077,892.90 0.15 65.88
186 Charlotte NC 28212 5,040,000 5,019,965.16 0.14 66.03
- ------------------------------------------------------------------------------------------------------------------------------------
187 Ocala FL 34474 5,000,000 4,994,436.22 0.14 66.17
188 Smithtown NY 11787 5,000,000 4,993,729.36 0.14 66.32
189 Huntsville AL 35801 5,005,330 4,987,105.52 0.14 66.46
190 Las Vegas NV 89128 4,980,307 4,973,783.03 0.14 66.60
- ------------------------------------------------------------------------------------------------------------------------------------
191 Various CA Various 4,950,000 4,936,933.47 0.14 66.74
191a South Pasadena CA 91030
191b Gardena CA 90249
191c Calexico CA 92231
191d Vallejo CA 94591
- ------------------------------------------------------------------------------------------------------------------------------------
192 Charleston SC 29403 4,921,000 4,907,580.45 0.14 66.89
193 Glendale AZ 85304 4,904,313 4,904,313.30 0.14 67.03
194 Conroe TX 77301 4,900,000 4,896,093.16 0.14 67.17
195 Gatlinburg TN 37738 4,875,000 4,865,111.39 0.14 67.31
- ------------------------------------------------------------------------------------------------------------------------------------
196 Tempe AZ 85283 4,858,304 4,851,870.64 0.14 67.45
197 Agoura Hills CA 91301 4,875,000 4,850,614.46 0.14 67.59
198 Casper WY 82609 4,800,000 4,787,972.59 0.14 67.72
199 Orange Park FL 32073 4,787,704 4,781,364.13 0.14 67.86
200 Houston TX 77034 4,750,000 4,735,219.11 0.14 68.00
- ------------------------------------------------------------------------------------------------------------------------------------
201 Wilkes-Barre PA 18701 4,675,000 4,662,868.47 0.13 68.13
202 Austin TX 78741 4,600,000 4,600,000.00 0.13 68.27
203 Marinette WI 54153 Group C 4,600,000 4,591,819.50 0.13 68.40
204 Salem NH 03079 4,600,000 4,588,483.58 0.13 68.53
205 Glendale CA 91214 4,600,000 4,587,970.90 0.13 68.66
- ------------------------------------------------------------------------------------------------------------------------------------
206 Richmond VA 23228 4,600,000 4,574,973.46 0.13 68.79
207 Berkeley CA 94710 4,500,000 4,493,754.73 0.13 68.92
208 Laguna Beach CA 92651 4,500,000 4,489,166.80 0.13 69.05
209 Lakeland FL 33801 4,500,000 4,488,810.52 0.13 69.18
210 Orlando FL 32809 4,500,000 4,485,830.01 0.13 69.31
- ------------------------------------------------------------------------------------------------------------------------------------
211 Shreveport LA 71129 4,500,000 4,483,464.26 0.13 69.44
212 Santa Ana CA 92704 4,496,250 4,482,358.10 0.13 69.57
213 Falls Township PA 19030 4,494,266 4,472,359.24 0.13 69.70
214 Battle Creek MI 49015 4,450,000 4,445,732.34 0.13 69.82
215 Plantation FL 33324 4,400,000 4,393,961.09 0.13 69.95
- ------------------------------------------------------------------------------------------------------------------------------------
216 Onley VA 23418 4,400,000 4,393,749.31 0.13 70.08
217 Logan Township PA 16601 4,400,000 4,389,461.37 0.13 70.20
218 Oklahoma City OK 73135 4,360,000 4,356,682.39 0.13 70.33
219 Scottsdale AZ 85251 4,250,000 4,246,854.08 0.12 70.45
220 Palm Beach FL 33480 4,200,000 4,196,597.85 0.12 70.57
- ------------------------------------------------------------------------------------------------------------------------------------
221 Santa Rosa CA 95403 4,200,000 4,196,581.00 0.12 70.69
222 Silver Spring MD 20901 4,200,000 4,191,649.51 0.12 70.81
223 Vernon CT 06066 4,200,000 4,188,585.76 0.12 70.93
224 Wilton Manors FL 33311 4,200,000 4,180,514.34 0.12 71.05
225 Blendon Township OH 43081 4,180,000 4,174,404.10 0.12 71.17
- ------------------------------------------------------------------------------------------------------------------------------------
226 Costa Mesa CA 92627 4,170,000 4,164,473.16 0.12 71.29
227 Tarzana CA 91356 4,156,400 4,150,453.39 0.12 71.41
228 Mesa AZ 85210 Group E 4,150,000 4,145,337.26 0.12 71.53
229 South Gate CA 90280 4,200,000 4,121,706.60 0.12 71.65
230 Chicago IL 60630 4,141,165 4,119,422.58 0.12 71.77
- ------------------------------------------------------------------------------------------------------------------------------------
231 Columbus OH 43229 4,120,000 4,114,484.43 0.12 71.89
232 Anaheim CA 92804 4,111,869 4,111,868.60 0.12 72.01
233 Sanford NC 27330 4,100,000 4,094,344.90 0.12 72.12
234 Mesa AZ 85204 4,100,000 4,093,770.79 0.12 72.24
235 Little Rock AR 72211 4,100,000 4,092,586.34 0.12 72.36
- ------------------------------------------------------------------------------------------------------------------------------------
236 Virginia MN 55792 4,100,000 4,085,108.18 0.12 72.48
237 Moorpark CA 93021 4,100,000 4,082,680.29 0.12 72.59
238 Longview TX 75605 4,080,000 4,076,595.82 0.12 72.71
239 Morristown NJ 07016 4,000,000 4,000,000.00 0.12 72.83
240 Lake View Terrace CA 91342 4,000,000 3,996,904.34 0.12 72.94
- ------------------------------------------------------------------------------------------------------------------------------------
241 Oakland Park FL 33334 4,000,000 3,990,036.80 0.11 73.06
242 Chicago IL 60661 4,000,000 3,987,665.78 0.11 73.17
243 Brentwood TN 37027 4,000,000 3,987,379.97 0.11 73.29
244 Williamsport MD 21795 3,975,000 3,956,704.30 0.11 73.40
245 Orlando FL 32803 3,950,000 3,932,520.25 0.11 73.51
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Interest Original Remaining
Control Mortgage Administrative Accrual Amortization Interest-Only Interest-Only
No. Rate (%) Cost Rate (%) Method Type Period (Mos.) Period (Mos.)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
182 7.1460% 0.0962% Actual/360 Amortizing Balloon 0 0
183 7.1940 0.0962 Actual/360 Amortizing Balloon 0 0
184 6.8750 0.0962 Actual/360 Amortizing Balloon 0 0
185 7.8750 0.0962 Actual/360 Amortizing Balloon 0 0
186 7.2150 0.0962 30/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
187 7.6500 0.1462 Actual/360 Amortizing Balloon 0 0
188 6.9000 0.1462 Actual/360 Amortizing Balloon 0 0
189 7.3750 0.0962 30/360 Amortizing Balloon 0 0
190 9.2000 0.0962 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
191 7.0700 0.1462 Actual/360 Amortizing Balloon 0 0
191a
191b
191c
191d
- -----------------------------------------------------------------------------------------------------------------------------------
192 6.8800 0.0962 Actual/360 Amortizing Balloon 0 0
193 7.1161 0.0962 Actual/360 Amortizing Balloon 0 0
194 7.1400 0.0962 Actual/360 Amortizing Balloon 0 0
195 7.6250 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
196 9.1200 0.0962 30/360 Fully Amortizing 0 0
197 7.8750 0.0962 Actual/360 Amortizing Balloon 0 0
198 7.3750 0.0962 Actual/360 Amortizing Balloon 0 0
199 9.1200 0.0962 30/360 Fully Amortizing 0 0
200 7.3100 0.0962 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
201 7.1700 0.0962 Actual/360 Amortizing (ARD) 0 0
202 7.3200 0.0962 Actual/360 Amortizing Balloon 0 0
203 7.6250 0.0962 Actual/360 Amortizing Balloon 0 0
204 7.3800 0.1462 Actual/360 Amortizing Balloon 0 0
205 7.1250 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
206 7.6250 0.0962 Actual/360 Amortizing Balloon 0 0
207 7.1750 0.0962 Actual/360 Amortizing Balloon 0 0
208 7.6100 0.0962 Actual/360 Amortizing (ARD) 0 0
209 7.4200 0.0962 Actual/360 Amortizing Balloon 0 0
210 7.2500 0.1712 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
211 7.4600 0.0962 Actual/360 Amortizing Balloon 0 0
212 7.3460 0.0962 Actual/360 Amortizing Balloon 0 0
213 8.1300 0.0962 Actual/360 Amortizing Balloon 0 0
214 7.4900 0.1462 Actual/360 Amortizing Balloon 0 0
215 7.2200 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
216 7.0800 0.1562 Actual/360 Amortizing (ARD) 0 0
217 7.2100 0.1462 30/360 Fully Amortizing 0 0
218 7.3750 0.0962 Actual/360 Amortizing Balloon 0 0
219 7.5130 0.0962 Actual/360 Amortizing Balloon 0 0
220 7.0600 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
221 7.0350 0.0962 Actual/360 Amortizing Balloon 0 0
222 6.7100 0.0962 Actual/360 Fully Amortizing 0 0
223 6.9000 0.0962 Actual/360 Amortizing Balloon 0 0
224 7.4500 0.0962 Actual/360 Amortizing (ARD) 0 0
225 7.3200 0.0962 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
226 7.3600 0.0962 Actual/360 Amortizing Balloon 0 0
227 7.0510 0.0962 Actual/360 Amortizing Balloon 0 0
228 7.5900 0.0962 Actual/360 Amortizing Balloon 0 0
229 7.2280 0.0962 30/360 Fully Amortizing 0 0
230 7.3600 0.0962 30/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
231 7.3200 0.0962 Actual/360 Amortizing (ARD) 0 0
232 7.7768 0.1712 Actual/360 Amortizing (ARD) 0 0
233 7.2000 0.1462 Actual/360 Amortizing Balloon 0 0
234 6.8020 0.0962 Actual/360 Amortizing Balloon 0 0
235 7.4900 0.1462 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
236 7.1600 0.1462 30/360 Fully Amortizing 0 0
237 7.5930 0.0962 Actual/360 Amortizing Balloon 0 0
238 6.9100 0.0962 Actual/360 Amortizing Balloon 0 0
239 7.3750 0.0962 Actual/360 Amortizing Balloon 0 0
240 7.2900 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
241 7.4100 0.1462 Actual/360 Amortizing (ARD) 0 0
242 7.3560 0.0962 Actual/360 Amortizing Balloon 0 0
243 7.2400 0.1562 30/360 Amortizing (ARD) 0 0
244 7.5000 0.1212 Actual/360 Fully Amortizing 0 0
245 7.9100 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Original Remaining
Term to Term to Original Remaining
Control Maturity Maturity Amortization Amortization Origination Maturity Balloon
No. (Mos.) (Mos.) Term (Mos.) Term (Mos.) Date or ARD Balance ($) Property Type
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
182 120 116 360 356 12/31/97 1/1/08 $ 4,606,149 Multifamily
183 120 116 360 356 12/30/97 1/1/08 4,556,686 Industrial
184 120 120 360 360 4/3/98 5/1/08 4,451,838 Multifamily
185 120 116 300 296 12/31/97 1/1/08 4,186,820 Hotel - Limited Service
186 120 115 360 355 11/26/97 12/1/07 4,346,569 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
187 120 119 300 299 4/1/98 4/1/08 4,080,529 Hotel - Limited Service
188 120 119 300 299 3/3/98 4/1/08 3,988,066 Retail - Anchored
189 239 236 295 292 1/26/98 1/1/18 1,739,088 CTL
190 252 251 252 251 4/1/98 4/1/19 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
191 120 117 360 357 1/22/98 2/1/08 4,322,981 Retail - Anchored
191a Retail - Anchored
191b Retail - Anchored
191c Retail - Anchored
191d Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
192 120 117 360 357 1/9/98 2/1/08 4,276,090 Multifamily
193 81 81 357 357 1/30/98 2/1/05 4,534,475 Retail - Anchored
194 120 119 360 359 3/4/98 4/1/08 4,290,134 Multifamily
195 120 118 300 298 2/27/98 3/1/08 3,976,334 Hotel - Limited Service
- -------------------------------------------------------------------------------------------------------------------------------
196 252 251 252 251 3/19/98 4/1/19 - CTL
197 120 114 330 324 10/30/97 11/1/07 4,194,994 Mixed Use
198 120 117 360 357 1/6/98 2/1/08 4,225,050 Multifamily
199 252 251 252 251 3/19/98 4/1/19 - CTL
200 84 80 360 356 12/31/97 1/1/05 4,394,255 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
201 180 177 360 357 1/22/98 2/1/13 3,601,628 Multifamily
202 120 120 360 360 4/2/98 5/1/08 4,046,809 Mobile Home Park
203 120 119 240 239 3/6/98 4/1/08 3,203,036 Industrial
204 120 117 360 357 1/13/98 2/1/08 4,049,521 Retail - Anchored
205 120 117 360 357 1/26/98 2/1/08 4,023,081 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
206 180 175 300 295 11/24/97 12/1/12 3,006,138 Office
207 120 118 360 358 2/25/98 3/1/08 3,944,114 Industrial
208 180 177 360 357 1/8/98 2/1/13 3,534,566 Retail - Unanchored
209 120 117 360 357 1/28/98 2/1/08 3,965,496 Office
210 120 116 360 356 12/16/97 1/1/08 3,948,991 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
211 120 117 300 297 1/20/98 2/1/08 3,648,624 Hotel - Limited Service
212 120 116 360 356 12/31/97 1/1/08 3,955,412 Retail - Anchored
213 120 114 327 321 10/8/97 11/1/07 3,877,566 Retail - Unanchored
214 120 119 324 323 3/31/98 4/1/08 3,759,839 Retail - Anchored
215 120 118 360 358 2/19/98 3/1/08 3,860,988 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
216 120 118 360 358 2/19/98 3/1/08 3,846,867 Retail - Anchored
217 300 298 300 298 1/30/98 3/1/23 - Retail - Anchored
218 120 119 360 359 3/30/98 4/1/08 3,840,596 Multifamily
219 120 119 360 359 3/11/98 4/1/08 3,756,814 Office
220 120 119 360 359 3/4/98 4/1/08 3,669,538 Office
- -------------------------------------------------------------------------------------------------------------------------------
221 84 83 360 359 3/12/98 4/1/05 3,868,291 Multifamily
222 240 239 240 239 3/18/98 4/1/18 125,804 Retail - Anchored
223 180 177 360 357 1/21/98 2/1/13 3,196,427 Multifamily
224 60 56 300 296 12/30/97 1/1/03 3,876,461 Multifamily
225 120 118 360 358 2/17/98 3/1/08 3,677,433 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
226 120 118 360 358 2/4/98 3/1/08 3,672,401 Retail - Unanchored
227 120 118 360 358 2/9/98 3/1/08 3,631,108 Multifamily
228 240 239 300 299 3/18/98 4/1/18 1,722,472 Hotel - Limited Service
229 139 135 139 135 12/16/97 8/1/09 - Industrial
230 240 236 286 282 12/9/97 1/1/18 1,209,626 CTL
- -------------------------------------------------------------------------------------------------------------------------------
231 120 118 360 358 2/17/98 3/1/08 3,624,647 Retail - Anchored
232 115 115 355 355 11/20/97 12/1/07 3,668,040 Multifamily
233 120 118 360 358 2/23/98 3/1/08 3,595,868 Retail - Unanchored
234 120 118 360 358 2/18/98 3/1/08 3,558,015 Mobile Home Park
235 240 239 240 239 3/10/98 4/1/18 155,523 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
236 300 297 300 297 1/12/98 2/1/23 - Multifamily
237 120 114 360 354 10/31/97 11/1/07 3,629,445 Industrial
238 120 119 360 359 3/12/98 4/1/08 3,550,503 Multifamily
239 120 120 300 300 4/8/98 5/1/08 3,238,084 Mixed Use
240 120 119 360 359 3/31/98 4/1/08 3,515,813 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
241 180 177 360 357 1/14/98 2/1/13 3,114,564 Multifamily
242 120 116 360 356 12/31/97 1/1/08 3,519,749 Office
243 120 116 360 356 12/22/97 1/1/08 3,451,628 Office
244 300 296 300 296 12/18/97 1/1/23 248,378 Multifamily
245 120 113 360 353 9/19/97 10/1/07 3,524,478 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Annual
Control Debt Net Appraised
No. Prepayment Provisions Service ($) Cash Flow ($) DSCR (x) Value ($)
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
182 L(4),D(5.83),O(.17) $ 426,389 $ 558,006 1.31x $ 7,000,000
183 L(4),D(5.83),O(.17) 423,310 684,041 1.62 8,000,000
184 L(5),D(5) 403,617 530,233 1.31 6,400,000
185 L(4),D(5.75),O(.25) 467,295 654,061 1.40 6,900,000
186 L(4),YM1%(5.5),O(.5) 411,145 518,432 1.26 6,300,000
- ------------------------------------------------------------------------------------------------------------------------------
187 L(2.17),YM1%(7.58),O(.25) or D(Borr) 449,265 669,348 1.49 6,700,000
188 L(4),D(5.5),O(.5) 420,248 723,868 1.72 8,300,000
189 L(8),D(11.9167) 441,595 450,427 NAP 5,300,000
190 L(8),YM1%(13) or D(Borr) 536,476 536,476 NAP 5,040,000
- ------------------------------------------------------------------------------------------------------------------------------
191 D(9.75),O(.25) 397,985 536,178 1.35 6,750,000
191a 3,450,000
191b 1,225,000
191c 1,150,000
191d 925,000
- ------------------------------------------------------------------------------------------------------------------------------
192 L(4),YM1%(5.75),O(.25) 388,127 513,965 1.32 6,350,000
193 L(3.75),YM1%(2.5),O(.5) 397,102 518,973 1.31 6,565,000
194 L(3),D(6.75),O(.25) 396,742 506,758 1.28 6,500,000
195 L(4),D(5.75),O(.25) 437,077 628,325 1.44 6,500,000
- ------------------------------------------------------------------------------------------------------------------------------
196 L(8),YM1%(13) or D(Borr) 520,278 520,278 NAP 5,010,000
197 L(2),D(7.75),O(.25) 434,034 603,776 1.39 6,500,000
198 L(4),YM1%(5.75),O(.25) 397,829 512,910 1.29 6,500,000
199 L(8),YM1%(13) or D(Borr) 512,717 512,717 NAP 4,920,000
200 L(4),D(2.75),O(.25) 391,163 508,453 1.30 6,300,000
- ------------------------------------------------------------------------------------------------------------------------------
201 L(2.33),D(12.17),O(.5) 379,662 465,155 1.23 6,000,000
202 L(4),D(5.67),O(.33) 379,186 521,045 1.37 5,850,000
203 L(4),D(5.75),O(.25) 448,916 645,555 1.44 6,010,000
204 L(4),D(5.75),O(.25) 381,441 479,219 1.26 5,850,000
205 L(4),D(5.83),O(.17) 371,893 475,291 1.28 5,750,000
- ------------------------------------------------------------------------------------------------------------------------------
206 L(5),D(9.75),O(.25) 412,422 546,309 1.32 6,950,000
207 L(4),D(5.83),O(.17) 365,632 539,744 1.48 7,150,000
208 L(7),D(7.75),O(.25) 381,652 481,379 1.26 8,000,000
209 L(4),D(5.5),O(.5) 374,622 470,882 1.26 6,350,000
210 L(4),YM1%(5.75),O(.25) 368,375 461,328 1.25 6,100,000
- ------------------------------------------------------------------------------------------------------------------------------
211 L(4),YM1%(5.75),O(.25) or D(Borr) 397,651 560,089 1.41 6,500,000
212 L(4),D(5.83),O(.17) 371,588 504,199 1.36 6,000,000
213 L(4),YM1%(5.75),O(.25) or D(Borr) 410,509 558,169 1.36 6,150,000
214 L(4),YM1%(5.75),O(.25) 384,517 537,770 1.40 6,010,000
215 L(4),D(5.75),O(.25) 359,115 533,572 1.49 6,100,000
- ------------------------------------------------------------------------------------------------------------------------------
216 L(4),D(5.75),O(.25) 354,121 453,531 1.28 5,850,000
217 L(10),D(14.75),O(.25) 380,282 497,526 1.31 5,900,000
218 L(4),D(6) 361,361 482,838 1.34 5,450,000
219 L(5),D(4.83),O(.17) 357,054 451,395 1.26 5,900,000
220 L(4),D(5.75),O(.25) 337,346 430,961 1.28 5,900,000
- ------------------------------------------------------------------------------------------------------------------------------
221 L(3),D(3.83),O(.17) 336,498 467,293 1.39 5,700,000
222 L(5),D(15) 382,026 591,356 1.55 7,500,000
223 L(3),D(12) 331,935 414,261 1.25 5,500,000
224 L(3),D(1.75),O(.25) 370,814 469,568 1.27 5,330,000
225 L(4),D(6) 344,564 454,012 1.32 5,600,000
- ------------------------------------------------------------------------------------------------------------------------------
226 L(4),D(5.5),O(.5) 345,102 526,819 1.53 5,580,000
227 L(4),D(5.67),O(.33) 333,542 472,094 1.42 5,550,000
228 L(4),D(16) 370,938 519,352 1.40 5,465,000
229 L(4),D(7.41),O(.17) 536,345 664,096 1.24 5,600,000
230 L(8),D(11.5),O(.5) 369,420 377,920 NAP 4,350,000
- ------------------------------------------------------------------------------------------------------------------------------
231 L(4),D(6) 339,618 439,850 1.30 5,600,000
232 L(3.58),YM1%(5.5),O(.5) 355,674 427,192 1.20 5,370,000
233 L(4),D(5.75),O(.25) 333,964 460,331 1.38 5,575,000
234 L(5),D(4.75),O(.25) 320,813 659,334 2.06 8,750,000
235 L(10),D(9.75),O(.25) 396,051 500,021 1.26 5,500,000
- ------------------------------------------------------------------------------------------------------------------------------
236 L(10),D(14.5),O(.5) 352,773 462,868 1.31 5,900,000
237 L(3),D(6.83),O(.17) 347,152 454,071 1.31 5,770,000
238 L(2),D(7.50),O(.5) 322,778 407,736 1.26 5,100,000
239 L(4),D(6) 350,822 549,104 1.57 6,300,000
240 L(3),D(7) 328,748 414,435 1.26 6,000,000
- ------------------------------------------------------------------------------------------------------------------------------
241 L(4),D(10),O(1) 332,670 434,245 1.31 5,000,000
242 L(4),D(5.83),O(.17) 330,903 509,842 1.54 5,625,000
243 L(4),D(5.5),O(.5) 327,119 446,124 1.36 5,050,000
244 L(5),YM1%(15),O(5) 352,499 465,995 1.32 5,300,000
245 L(3),D(6.5),O(.5) 344,835 460,201 1.33 5,150,000
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten
Hospitality Sq. Ft., Loan per
Cut-off Scheduled Average Units Sq. Ft., Units
Control Appraisal Date Maturity Date Daily Year Year Bed, Pad Bed, Pad Occupancy
No. Year LTV (%) LTV (%) Rate ($) Built Renovated or Room or Room ($) Percentage (%)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
182 1997 74.9% 65.8% 1988 N/A 92 Units $ 57,206.52 98.9%
183 1997 64.8 57.0 1980 N/A 137,087 Sq. Ft. 37.93 100.0
184 1998 80.0 69.6 1963-1972 1995-1997 180 Units 28,444.44 95.6
185 1997 73.6 60.7 $67.00 1996 N/A 102 Rooms 50,000.00 NAP
186 1997 79.7 69.0 1983 N/A 162 Units 31,111.11 93.8
- --------------------------------------------------------------------------------------------------------------------------------
187 1998 74.5 60.9 53.49 1989 N/A 139 Rooms 35,971.22 NAP
188 1997 60.2 48.1 1976 N/A 99,336 Sq. Ft. 50.33 98.4
189 1997 NAP 32.8 1974 1996 66,720 Sq. Ft. 75.02 100.0
190 1998 NAP 0.0 1994 N/A 46,760 Sq. Ft. 106.51 100.0
- --------------------------------------------------------------------------------------------------------------------------------
191 1997 73.1 64.0 77,398 Sq. Ft. 63.96 100.0
191a 1997 1981 N/A 25,619 Sq. Ft. 100.0
191b 1997 1958 N/A 13,889 Sq. Ft. 100.0
191c 1997 1983 N/A 19,766 Sq. Ft. 100.0
191d 1997 1981 N/A 18,124 Sq. Ft. 100.0
- --------------------------------------------------------------------------------------------------------------------------------
192 1997 77.3 67.3 1995 N/A 58 Units 84,844.83 94.2
193 1997 74.7 69.1 1987 N/A 101,073 Sq. Ft. 48.52 90.9
194 1998 75.3 66.0 1978 N/A 228 Units 21,491.23 88.2
195 1997 74.9 61.2 77.50 1992 N/A 96 Rooms 50,781.25 NAP
- --------------------------------------------------------------------------------------------------------------------------------
196 1998 NAP 0.0 1993 N/A 46,658 Sq. Ft. 104.13 100.0
197 1997 74.6 64.5 1990 N/A 56,937 Sq. Ft. 85.62 98.1
198 1997 73.7 65.0 1982 N/A 304 Units 15,789.47 99.1
199 1998 NAP 0.0 1991 N/A 46,658 Sq. Ft. 102.61 100.0
200 1997 75.2 69.8 1983 N/A 103,013 Sq. Ft. 46.11 90.1
- --------------------------------------------------------------------------------------------------------------------------------
201 1997 77.7 60.0 1970s 1994-97 121 Units 38,636.36 97.5
202 1997 78.6 69.2 1972 N/A 233 Pads 19,742.49 93.1
203 1998 76.4 53.3 1975 1978 374,000 Sq. Ft. 12.30 100.0
204 1997 78.4 69.2 1989,90 N/A 37,993 Sq. Ft. 121.07 100.0
205 1997 79.8 70.0 1964 N/A 92 Units 50,000.00 100.0
- --------------------------------------------------------------------------------------------------------------------------------
206 1997 65.8 43.3 1991 N/A 76,164 Sq. Ft. 60.40 100.0
207 1997 62.9 55.2 1949 1997 72,000 Sq. Ft. 62.50 100.0
208 1997 56.1 44.2 1973 1992 44,307 Sq. Ft. 101.56 97.4
209 1997 70.7 62.5 1975 N/A 66,170 Sq. Ft. 68.01 98.4
210 1997 73.5 64.7 1971 N/A 324 Units 13,888.89 90.3
- --------------------------------------------------------------------------------------------------------------------------------
211 1997 69.0 56.1 57.00 1996 N/A 105 Rooms 42,857.14 NAP
212 1997 74.7 65.9 1989 N/A 44,000 Sq. Ft. 102.19 95.0
213 1997 72.7 63.1 1988 N/A 52,006 Sq. Ft. 86.42 96.1
214 1998 74.0 62.6 1988 N/A 72,601 Sq. Ft. 61.29 97.3
215 1997 72.0 63.3 1957,1975 1976,96,97 77,374 Sq. Ft. 56.87 99.2
- --------------------------------------------------------------------------------------------------------------------------------
216 1997 75.1 65.8 1987 N/A 109,906 Sq. Ft. 40.03 84.2
217 1997 74.4 0.0 1987 N/A 86,048 Sq. Ft. 51.13 97.0
218 1997 79.9 70.5 1974 1996 224 Units 19,464.29 96.0
219 1998 72.0 63.7 1984 N/A 58,468 Sq. Ft. 72.69 94.0
220 1998 71.1 62.2 1986 N/A 11,080 Sq. Ft. 379.06 100.0
- --------------------------------------------------------------------------------------------------------------------------------
221 1998 73.6 67.9 1975 1996 114 Units 36,842.11 99.0
222 1997 55.9 1.7 1960 1990 42,529 Sq. Ft. 98.76 100.0
223 1997 76.2 58.1 1965 N/A 152 Units 27,631.58 96.0
224 1997 78.4 72.7 1970-73 N/A 156 Units 26,923.08 96.2
225 1997 74.5 65.7 1967 1976,1989 100,473 Sq. Ft. 41.60 91.5
- --------------------------------------------------------------------------------------------------------------------------------
226 1997 74.6 65.8 1950,1997 N/A 24,233 Sq. Ft. 172.08 100.0
227 1997 74.8 65.4 1977 N/A 86 Units 48,330.23 95.0
228 1998 75.9 31.5 64.00 1984 1997 121 Rooms 34,297.52 NAP
229 1997 73.6 0.0 1997 N/A 49,344 Sq. Ft. 85.12 100.0
230 1997 NAP 27.8 1997 N/A 13,905 Sq. Ft. 297.82 100.0
- --------------------------------------------------------------------------------------------------------------------------------
231 1997 73.5 64.7 1967 1972,84,92 97,349 Sq. Ft. 42.32 92.9
232 1997 76.6 68.3 1968 1997 117 Units 35,144.18 94.0
233 1998 73.4 64.5 1964-1968 N/A 197,498 Sq. Ft. 20.76 93.9
234 1998 46.8 40.7 1972 N/A 293 Spaces 13,993.17 99.0
235 1997 74.4 2.8 1995 N/A 45,000 Sq. Ft. 91.11 100.0
- --------------------------------------------------------------------------------------------------------------------------------
236 1997 69.2 0.0 1976 N/A 156 Units 26,282.05 96.8
237 1997 70.8 62.9 1984 1997 116,048 Sq. Ft. 35.33 100.0
238 1998 79.9 69.6 1977 1993 192 Units 21,250.00 93.5
239 1998 63.5 51.4 1922 1990 52,486 Sq. Ft. 76.21 90.8
240 1997 66.6 58.6 1986 N/A 116 Units 34,482.76 96.6
- --------------------------------------------------------------------------------------------------------------------------------
241 1997 79.8 62.3 1971-1974 N/A 124 Units 32,258.06 95.2
242 1997 70.9 62.6 1899 1991 106,800 Sq. Ft. 37.45 100.0
243 1997 79.0 68.4 1997 N/A 38,673 Sq. Ft. 103.43 100.0
244 1997 74.7 4.7 1973 N/A 168 Units 23,660.71 91.1
245 1997 76.4 68.4 1966,1969 N/A 51,723 Sq. Ft. 76.37 100.0
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Tenant
------------------------------------------------------------------------------
Tenant
Control Rent Roll Underwriting Area Leased Lease
No. Date Reserves ($) per Tenant Name (Sq. Ft.) Exp Date
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
182 10/30/97 $247.26 Unit
183 12/19/97 0.29 Sq. Ft. Micro Distribution Center 45,175 7/31/02
184 1/31/98 330.00 Unit
185 NAP 4% of Gross Revenue Room
186 11/1/97 354.80 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
187 NAP 4% of Gross Revenue Room
188 10/30/97 0.15 Sq. Ft. Waldbaum 128, Inc. 34,435 5/31/06
189 5/1/98 0.08 Sq. Ft. Kroger Company 66,720 1/31/18
190 5/1/98 - Sq. Ft. Q Club, Inc 46,760 3/31/19
-
- ------------------------------------------------------------------------------------------------------------------------------------
191 1/28/98 0.22 Sq. Ft.
191a 1/28/98 0.17 Sq. Ft. Thrifty's 25,619 12/31/03
191b 1/28/98 0.18 Sq. Ft. Thrifty's 13,889 12/31/03
191c 1/28/98 0.20 Sq. Ft. Thrifty's 19,766 12/31/03
191d 1/28/98 0.36 Sq. Ft. Thrifty's 18,124 12/31/03
- ------------------------------------------------------------------------------------------------------------------------------------
-
192 8/15/97 312.00 Unit
193 12/31/97 0.17 Sq. Ft. ABCO Markets, Inc. 37,546 1/15/08
194 12/31/97 225.00 Unit
195 NAP 4% of Gross Revenue Room
- ------------------------------------------------------------------------------------------------------------------------------------
196 5/1/98 - Sq. Ft. Q Club, Inc 46,658 3/31/19
197 2/28/98 0.10 Sq. Ft. State Farm Mutual Auto Insurance Co. 22,407 11/30/00
198 12/1/97 256.00 Unit
199 5/1/98 - Sq. Ft. Q Club, Inc 46,658 3/31/19
200 11/1/97 0.15 Sq. Ft. Lowes Theatre 27,805 12/31/12
- ------------------------------------------------------------------------------------------------------------------------------------
201 10/2/97 271.85 Unit
202 3/27/98 34.40 Pad
203 0 0.10 Sq. Ft. K & K Warehouse, Inc. 350,875 NAV
204 12/18/97 0.15 Sq. Ft. Barnes & Noble 20,000 6/30/02
205 1/1/98 301.05 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
206 3/19/98 0.10 Sq. Ft. Roche Biomedical 56,665 4/1/01
207 10/1/97 0.10 Sq. Ft. Sweet Potatoes 26,000 5/31/00
208 12/2/97 0.15 Sq. Ft. Events By Design 4,300 7/31/99
209 3/16/98 0.15 Sq. Ft. Commercial Insurance Consultants, Inc. 11,270 6/30/98
210 10/1/97 200.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
211 NAP 4% of Gross Revenue Room
212 12/3/97 0.25 Sq. Ft. Hollywood Video 6,000 7/31/01
213 3/12/98 0.19 Sq. Ft. Papercutters 10,600 1/1/01
214 2/16/98 0.15 Sq. Ft. K-Mart (Shadow) NAV NAV
215 1/1/98 0.15 Sq. Ft. Nordis Network, Inc. 9,600 4/30/01
- ------------------------------------------------------------------------------------------------------------------------------------
216 1/29/98 0.15 Sq. Ft. Food Lion 35,296 12/29/17
217 10/17/97 0.23 Sq. Ft. Bi-Lo 49,408 2/28/07
218 10/1/97 280.00 Unit
219 2/23/98 0.39 Sq. Ft. Morrison Karsten Group 873 1/1/98
220 2/2/98 0.16 Sq. Ft. Morgan Trust Co. of FL 11,080 11/30/01
- ------------------------------------------------------------------------------------------------------------------------------------
221 2/1/98 162.37 Unit
222 3/17/98 0.33 Sq. Ft. Staples #21 19,467 5/31/07
223 8/15/97 385.00 Unit
224 12/5/97 250.00 Unit
225 9/20/97 0.20 Sq. Ft. Super Saver Cinema 25,000 1/14/10
- ------------------------------------------------------------------------------------------------------------------------------------
226 12/12/97 0.15 Sq. Ft. Kinko's Copies 8,500 11/1/06
227 11/15/97 306.00 Unit
228 NAP 4% of Gross Revenue Room
229 10/1/97 0.15 Sq. Ft. Los Angeles Community College District 49,344 8/14/09
230 5/1/98 0.15 Sq. Ft. Walgreens 13,905 8/31/57
- ------------------------------------------------------------------------------------------------------------------------------------
231 9/20/97 0.20 Sq. Ft. Staples 19,489 7/31/99
232 3/31/98 170.00 Unit
233 2/20/98 0.17 Sq. Ft. Kendale Flea Market 50,000 12/1/00
234 11/30/98 38.00 Space
235 3/10/98 0.10 Sq. Ft. Best Buy 45,000 9/30/17
- ------------------------------------------------------------------------------------------------------------------------------------
236 9/1/97 250.00 Unit
237 7/1/97 0.15 Sq. Ft. Seagate Technology 116,048 10/31/03
238 2/25/98 242.00 Unit
239 1/1/98 0.13 Sq. Ft. Fidelity Investments 6,309 11/30/03
240 11/14/97 225.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
241 11/8/97 267.00 Unit
242 11/17/97 0.15 Sq. Ft. Catholic Charties 22,847 5/1/04
243 9/30/97 0.10 Sq. Ft. Thomas, Miller & Partners 8,944 9/30/07
244 10/1/97 202.00 Unit
245 10/3/97 0.15 Sq. Ft. Progressive Inc. 13,000 1/31/03
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2nd Largest Tenant 3rd Largest Tenant
--------------------------------------------------------- -------------------------------------------------------------
Tenant Tenant
Control Area Leased Lease Area Leased Lease Control
No. Tenant Name (Sq. Ft.) Exp Date Tenant Name (Sq. Ft.) Exp Date No.
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
182 182
183 S & M Moving Systems 38,640 1/14/02 Media Factory 21,109 12/31/03 183
184 184
185 185
186 186
- ------------------------------------------------------------------------------------------------------------------------------------
187 187
188 Genovese Drug Stores, Inc. 15,000 3/31/01 Apple Bank for Savings 4,750 3/31/01 188
189 189
190 190
- ------------------------------------------------------------------------------------------------------------------------------------
191 191
191a 191a
191b 191b
191c 191c
191d 191d
- ------------------------------------------------------------------------------------------------------------------------------------
192 192
193 Dynamic Fitness, Inc. 13,000 4/30/02 Desert Springs Christian Fellowship 6,500 11/30/00 193
194 194
195 195
- ------------------------------------------------------------------------------------------------------------------------------------
196 196
197 Lazer Craze 6,967 9/30/01 Tony Romas 5,000 12/31/99 197
198 198
199 199
200 NCA Super Center 9,400 10/31/98 Chilis 6,000 3/31/02 200
- ------------------------------------------------------------------------------------------------------------------------------------
201 201
202 202
203 Karl Schmidt Unisia 23,125 12/1/02 N/A 203
204 Pier One Imports 8,980 4/30/00 Nevada Bob's 5,100 5/31/00 204
205 205
- ------------------------------------------------------------------------------------------------------------------------------------
206 Diversified Engineering 14,625 6/1/98 J.P. Mancini (sublease to Austin Reed) 4,874 10/31/98 206
207 Publishers Group West 2,400 12/31/07 Codys Books 12,135 11/30/07 207
208 China 88 3,100 5/31/98 Pure Living 3,032 8/31/99 208
209 Velda Farms 11,000 6/30/03 South Trust Bank 10,000 7/31/07 209
210 210
- ------------------------------------------------------------------------------------------------------------------------------------
211 211
212 Super Savers 6,000 9/30/99 Century 21 2,400 1/31/98 212
213 Floors, USA Inc. 8,100 12/31/01 International House of Pancakes 6,800 10/31/17 213
214 Dunham's Discount Sports 20,000 1/31/03 Fashion Bug 8,000 1/31/00 214
215 Kinko's Copy Center 6,500 4/17/07 Goodyear Tire & Rubber Co. 6,264 2/28/10 215
- ------------------------------------------------------------------------------------------------------------------------------------
216 Variety Wholesalers, Inc. 18,000 6/30/02 Rite Aid 10,010 11/30/07 216
217 Dollar General 8,450 8/31/00 Rex 7,680 4/30/02 217
218 218
219 Accent Janitorial 431 12/31/97 Lincoln Studios West 399 2/28/98 219
220 220
- ------------------------------------------------------------------------------------------------------------------------------------
221 221
222 CVS Pharmacy #1492 11,874 12/31/03 West Coast Video 1,838 12/31/00 222
223 223
224 224
225 ALDI 14,047 5/31/05 Cushions Billiards 8,098 8/31/02 225
- ------------------------------------------------------------------------------------------------------------------------------------
226 Mattress Discounters 4,020 10/9/99 Big City Bagels 2,318 11/24/98 226
227 227
228 228
229 229
230 230
- ------------------------------------------------------------------------------------------------------------------------------------
231 Golden Corral 10,736 4/12/05 Parts America 7,710 4/30/05 231
232 232
233 Eckerd 16,000 8/31/05 B.C. Moore 15,000 9/30/99 233
234 234
235 Linens N Things (Shadow) 30,625 235
- ------------------------------------------------------------------------------------------------------------------------------------
236 236
237 237
238 238
239 Whites/GNC Health 7,768 6/30/03 Bayshore Furriers 7,210 7/1/05 239
240 240
- ------------------------------------------------------------------------------------------------------------------------------------
241 241
242 Catholic Charities 8,263 5/1/05 Paper Co. 8,706 4/30/02 242
243 Edwin R. Raskin Company 8,895 9/30/07 Robert S. Biscan, Co. 4,759 9/30/07 243
244 244
245 Vision Works 8,000 7/31/07 Centcuso Inc. 3,380 1/31/03 245
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
Control
No. Property Name Address
==========================================================================================================================
<S> <C> <C>
246 Arnold Industrial Park 1361 Airport Road North
247 Derby Ridge 67 Blue Stone Court
248 Ventana Row 2352 Shattuck Avenue
249 New Hampshire Apartments 445 South New Hampshire Ave
250 Superstition Marketplace 1155 South Power Road
- --------------------------------------------------------------------------------------------------------------------------
251 Blue Grass Plaza 2417 Welsh Road (PA 532)
252 Merrill Crossing Shopping Ctr. 9119 Merrill Road
253 River Creek Apartments 2525 Center West Parkway
254 Village Green 1000-1013 Village Green, 1005-1013 Milan Drive
255 Spartan Square Shopping Center 1435-1499 W. Main St.
- --------------------------------------------------------------------------------------------------------------------------
256 Winn Dixie Eustis 1951 State Road 19 North
257 Versailles of Rockford 5145 East State Street
258 Lynnwood Manor Health Care Center 5821 188th Street S.W.
259 Tri-County Square U.S. Highway 25E
260 Bethesda Court Hotel 7740 Wisconsin Avenue
- --------------------------------------------------------------------------------------------------------------------------
261 Winn Dixie Orangeburg 1481 Chestnut Street
262 Roswell Mill Office Buildings 85 Mill Street
263 Highland Tech Center 8925,8955,8985 East Nichols Avenue
264 Stor-All Properties Various
265 Parole Office Park 130, 132 and 134 Holiday Court
- --------------------------------------------------------------------------------------------------------------------------
266 McEvers Corners 975 Dawsonville Road
267 Windscape II Apartments 3099 Parhan Drive
268 Courtyards Apartments 1906 Sam Houston Drive
269 Miami Gardens Plaza 18351 Northwest 27th Avenue
270 Village South 1243 Bay Area Blvd
- --------------------------------------------------------------------------------------------------------------------------
271 Webtron Building 2030 W. McNab Road
272 Fairway Center 9115 Southwest Oleson Road
273 Santa Fe Square Northeast Corner of Southern Avenue & Gilbert Road
274 Gomes Plaza 1057-1075 Blossom Hill Road
275 Covington Square 4828 Zenith Street
- --------------------------------------------------------------------------------------------------------------------------
276 Best Buy (Sioux Falls) 2104 W. 41st Street
277 Parkway Nursing Home 525 13th Street
278 Grand Manor Nursing and Rehab Center 3645 Cook Avenue
279 Terrace View Apartments 525 Vaughn Avenue
280 Hillsdale Manor 4710-4738 Wakefield Road
- --------------------------------------------------------------------------------------------------------------------------
281 Amerihost Inn- Players 203 Front Street
282 Walgreens (Las Vegas) 9420 Lake Mead Boulevard
283 Metro Plaza 1407-1411 East-West Hgwy & 8397-8399 Colesville Rd
284 Fidelity Federal Bank Building 6350 Laurel Canyon Boulevard
285 White Mountain Village 20 East White Mountain Boulevard
- --------------------------------------------------------------------------------------------------------------------------
286 Forestwood On the Creek Apts. 9601 Forest Lane
287 Shepherdsville Square Kentucky Highway 44
288 Westbrook 3463-3560 53rd Ave
289 100 Broadway 64, 100 & 102 Broadway
290 Staples Hazelton 180 Susquehanna Boulevard
- --------------------------------------------------------------------------------------------------------------------------
291 Treetops Terace Condominiums 93-116 Tree Top Court
292 Estero Woods Village 22770 South Tamiami Trail
293 Green Center (MCG) East Gude Drive and Taft Street
294 Warehouse Specialists - Fond Du Lac II 170 W. Larsen Drive
295 Walgreens Pharmacy (Chicago Heights) SWC of Western Avenue and Lincoln Highway
- --------------------------------------------------------------------------------------------------------------------------
296 Everett I-5 Mini-Storage 13026 4th Avenue West
297 Buck Run/Timberline Condominiums 4689 Buck Run Square
298 Marketplace Shopping Center (Williamsburg-Loan Level) Various
298a Rivergate Business Center (Williamsburg-Prop Level) 309 McLaws Circle
- --------------------------------------------------------------------------------------------------------------------------
298b Marketplace Shopping Center (Williamsburg-Prop Level) 240 McLaws Circle
299 Mooresmill Village 2453 Coronet Way, NE
300 The Pontiac Building 542 South Dearborn
301 Best Buy Retail Bldg. 6900 South Westnedge Avenue
- --------------------------------------------------------------------------------------------------------------------------
302 Sussex Downs Apartments 1125 Magnoilia Drive
303 Foothills Villas Apartments 2601-2675 West Second Street
304 Lincoln Arms Apartments 190 C Street
305 2-32 Brighton & 1101-1113 Commonwealth 2-32 Brighton & 1101-1113 Commonwealth
306 Manchester Square Kentucky Highway 8 at U.S. Highway 421
- --------------------------------------------------------------------------------------------------------------------------
307 Northgate Villas Apartments 2305 Carville Drive
308 South Brook 5101 Linbar Drive
309 The Promenade Apartments 2330-2332 West Glenrosa Avenue
310 Swall Towers East 310 S. Swall Drive
311 Pinnacle 7131 Pinnacle Drive
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial
No. City State Code Groups Balance ($) Balance ($) Balance Pool Balance
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
246 Naples FL 34104 $ 3,940,000 $ 3,925,345.74 0.11% 73.63%
247 Lakeside Park KY 41017 3,900,000 3,888,336.27 0.11 73.74
248 Berkeley CA 94704 3,900,000 3,881,505.61 0.11 73.85
249 Los Angeles CA 90020 3,850,000 3,836,194.01 0.11 73.96
250 Mesa AZ 85206 3,800,000 3,800,000.00 0.11 74.07
- ------------------------------------------------------------------------------------------------------------------------------------
251 Philadelphia PA 19114 3,800,000 3,793,244.60 0.11 74.18
252 Jacksonville FL 32211 3,800,000 3,790,289.55 0.11 74.29
253 Augusta GA 30901 3,800,000 3,788,034.64 0.11 74.40
254 Norfolk NE 68701 3,800,000 3,787,735.69 0.11 74.51
255 Salem VA 24523 3,800,000 3,785,732.36 0.11 74.61
- ------------------------------------------------------------------------------------------------------------------------------------
256 Eustis FL 32726 3,811,719 3,781,369.71 0.11 74.72
257 Rockford IL 61108 3,760,000 3,750,108.50 0.11 74.83
258 Lynnwood WA 98037 3,750,000 3,746,037.63 0.11 74.94
259 Corbin KY 40701 Group F 3,700,000 3,688,584.07 0.11 75.05
260 Bethesda MD 28014 3,650,000 3,636,395.34 0.10 75.15
- ------------------------------------------------------------------------------------------------------------------------------------
261 Orangeburg SC 29115 3,642,092 3,614,562.16 0.10 75.25
262 Roswell GA 30075 3,625,000 3,614,244.75 0.10 75.36
263 Englewood CO 80112 3,600,000 3,597,169.25 0.10 75.46
264 Delray Beach & Riviera Beach FL Various 3,600,000 3,594,923.24 0.10 75.57
265 Annapolis MD 21401 3,600,000 3,594,810.39 0.10 75.67
- ------------------------------------------------------------------------------------------------------------------------------------
266 Gainesville GA 30504 3,600,000 3,591,540.48 0.10 75.77
267 Grand Prairie TX 75052 3,600,000 3,591,189.64 0.10 75.88
268 Victoria TX 77901 3,600,000 3,591,078.89 0.10 75.98
269 Miami FL 33056 3,600,000 3,591,048.41 0.10 76.08
270 Clear Lake City TX 77058 3,580,000 3,577,012.99 0.10 76.18
- ------------------------------------------------------------------------------------------------------------------------------------
271 Ft. Lauderdale FL 33309 3,550,000 3,547,375.75 0.10 76.29
272 Portland OR 97223 3,550,000 3,547,372.24 0.10 76.39
273 Mesa AZ 85204 3,500,000 3,496,073.89 0.10 76.49
274 San Jose CA 95123 3,500,000 3,492,968.16 0.10 76.59
275 Metairie LA 70001 3,480,000 3,477,096.43 0.10 76.69
- ------------------------------------------------------------------------------------------------------------------------------------
276 Sioux Falls SD 57105 3,475,000 3,475,000.00 0.10 76.79
277 Snohomish WA 98290 3,450,000 3,446,354.62 0.10 76.89
278 St Louis MO 63113 3,450,000 3,435,045.19 0.10 76.99
279 Toms River NJ 08753 3,440,000 3,431,073.27 0.10 77.09
280 Baltimore MD 21207 3,435,000 3,426,847.77 0.10 77.19
- ------------------------------------------------------------------------------------------------------------------------------------
281 Metroplois IL 62960 3,450,000 3,419,679.83 0.10 77.28
282 Las Vegas NV 89134 3,435,750 3,396,544.93 0.10 77.38
283 Silver Spring MD 20910 3,400,000 3,394,966.40 0.10 77.48
284 North Hollywood CA 91606 3,400,000 3,392,923.73 0.10 77.58
285 Pinetop-Lakeside AZ 85935 3,400,000 3,390,568.02 0.10 77.67
- ------------------------------------------------------------------------------------------------------------------------------------
286 Dallas TX 75243 3,400,000 3,389,912.30 0.10 77.77
287 Shepardsville KY 41065 Group G 3,400,000 3,389,509.68 0.10 77.87
288 Columbus NE 68601 3,396,000 3,385,039.59 0.10 77.97
289 Menands NY 12204 3,400,000 3,380,435.75 0.10 78.06
290 West Hazelton PA 18201 3,380,195 3,361,990.84 0.10 78.16
- ------------------------------------------------------------------------------------------------------------------------------------
291 Blommingdale NJ 07403 3,350,000 3,350,000.00 0.10 78.26
292 Estero FL 33928 3,360,000 3,349,272.58 0.10 78.35
293 Rockville MD 20850 3,350,000 3,343,708.47 0.10 78.45
294 Fond Du Lac WI 54935 Group D 3,350,000 3,330,287.28 0.10 78.55
295 Chicago Heights IL 60630 3,313,544 3,297,412.39 0.09 78.64
- ------------------------------------------------------------------------------------------------------------------------------------
296 Everett WA 98204 3,300,000 3,295,515.58 0.09 78.74
297 Roanoke VA 24014 3,300,000 3,295,363.42 0.09 78.83
298 Williamsburg VA 23185 3,300,000 3,291,905.50 0.09 78.93
298a Williamsburg VA 23185
- ------------------------------------------------------------------------------------------------------------------------------------
298b Williamsburg VA 23185
299 Atlanta GA 30318 3,300,000 3,291,194.91 0.09 79.02
300 Chicago IL 60605 3,300,000 3,289,824.29 0.09 79.11
301 Portage MI 49002 3,300,000 3,287,692.89 0.09 79.21
- ------------------------------------------------------------------------------------------------------------------------------------
302 Franklin TN 37064 3,275,000 3,266,130.06 0.09 79.30
303 San Bernadino CA 92410 3,300,000 3,264,848.02 0.09 79.40
304 Sparks NV 89431 3,262,500 3,252,040.67 0.09 79.49
305 Boston MA 02215 3,250,000 3,246,220.37 0.09 79.58
306 Manchester KY 40165 Group F 3,250,000 3,239,972.50 0.09 79.68
- ------------------------------------------------------------------------------------------------------------------------------------
307 Reno NV 89512 3,240,000 3,231,170.58 0.09 79.77
308 Nashville TN 37211 3,225,000 3,213,139.91 0.09 79.86
309 Phoenix AZ 85015 3,220,000 3,208,099.19 0.09 79.96
310 Los Angeles CA 90048 3,200,000 3,197,448.60 0.09 80.05
311 Ft. Myers FL 33907 3,200,000 3,191,724.41 0.09 80.14
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Interest Original Remaining
Control Mortgage Administrative Accrual Amortization Interest-Only Interest-Only
No. Rate (%) Cost Rate (%) Method Type Period (Mos.) Period (Mos.)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
246 7.3750% 0.0962% Actual/360 Amortizing Balloon 0 0
247 7.5100 0.0962 Actual/360 Amortizing Balloon 0 0
248 7.3120 0.0962 Actual/360 Amortizing Balloon 0 0
249 7.4460 0.0962 Actual/360 Amortizing Balloon 0 0
250 7.2500 0.0962 Actual/360 Interest-Only then Amortizing Balloon 24 20
- -----------------------------------------------------------------------------------------------------------------------------------
251 7.1000 0.1212 Actual/360 Amortizing Balloon 0 0
252 7.2600 0.1462 Actual/360 Amortizing Balloon 0 0
253 7.2500 0.0962 30/360 Amortizing Balloon 0 0
254 7.1250 0.0962 Actual/360 Amortizing Balloon 0 0
255 6.8000 0.0962 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
256 7.0300 0.0962 30/360 Fully Amortizing 0 0
257 7.0900 0.0962 Actual/360 Amortizing (ARD) 0 0
258 7.9700 0.1462 Actual/360 Amortizing Balloon 0 0
259 7.3530 0.0962 Actual/360 Amortizing (ARD) 0 0
260 7.3600 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
261 7.2600 0.0962 30/360 Amortizing Balloon 0 0
262 7.5500 0.1562 Actual/360 Amortizing (ARD) 0 0
263 7.2100 0.1462 Actual/360 Amortizing (ARD) 0 0
264 7.1100 0.1462 Actual/360 Amortizing (ARD) 0 0
265 7.0200 0.1462 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
266 7.3300 0.1462 30/360 Fully Amortizing 0 0
267 7.0540 0.0962 30/360 Amortizing Balloon 0 0
268 7.4400 0.0962 Actual/360 Amortizing Balloon 0 0
269 7.4200 0.1762 Actual/360 Amortizing Balloon 0 0
270 6.9100 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
271 7.5200 0.1462 Actual/360 Amortizing Balloon 0 0
272 7.5130 0.0962 Actual/360 Amortizing Balloon 0 0
273 7.6000 0.1462 Actual/360 Amortizing Balloon 0 0
274 7.6750 0.0962 Actual/360 Amortizing Balloon 0 0
275 6.9100 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
276 7.4300 0.1462 Actual/360 Amortizing Balloon 0 0
277 7.9700 0.1462 Actual/360 Amortizing Balloon 0 0
278 7.8750 0.0962 Actual/360 Amortizing Balloon 0 0
279 7.1700 0.0962 Actual/360 Amortizing (ARD) 0 0
280 7.2100 0.0962 30/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
281 7.6250 0.0962 Actual/360 Fully Amortizing 0 0
282 7.2000 0.0962 30/360 Fully Amortizing 0 0
283 6.9100 0.0962 Actual/360 Amortizing Balloon 0 0
284 7.4900 0.1462 Actual/360 Amortizing Balloon 0 0
285 6.7800 0.1462 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
286 7.5500 0.0962 Actual/360 Amortizing Balloon 0 0
287 7.3530 0.0962 Actual/360 Amortizing (ARD) 0 0
288 7.1250 0.0962 Actual/360 Amortizing Balloon 0 0
289 7.3600 0.1462 Actual/360 Amortizing Balloon 0 0
290 7.6000 0.0962 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
291 7.2500 0.0962 Actual/360 Amortizing Balloon 0 0
292 7.1800 0.0962 Actual/360 Amortizing Balloon 0 0
293 7.1800 0.1462 Actual/360 Amortizing Balloon 0 0
294 7.4375 0.0962 Actual/360 Fully Amortizing 0 0
295 7.4300 0.0962 30/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
296 7.2600 0.1462 Actual/360 Amortizing Balloon 0 0
297 7.1250 0.0962 Actual/360 Amortizing Balloon 0 0
298 7.5000 0.1462 Actual/360 Amortizing (ARD) 0 0
298a
- -----------------------------------------------------------------------------------------------------------------------------------
298b
299 9.0625 0.0962 30/360 Fully Amortizing 0 0
300 7.3560 0.0962 Actual/360 Amortizing Balloon 0 0
301 7.3560 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
302 6.9200 0.0962 Actual/360 Amortizing Balloon 0 0
303 7.7700 0.0962 30/360 Fully Amortizing 0 0
304 7.1590 0.0962 Actual/360 Amortizing Balloon 0 0
305 7.3750 0.0962 Actual/360 Amortizing Balloon 0 0
306 7.3530 0.0962 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
307 6.8840 0.0962 Actual/360 Amortizing Balloon 0 0
308 7.3300 0.0962 Actual/360 Amortizing Balloon 0 0
309 7.3070 0.0962 Actual/360 Amortizing Balloon 0 0
310 7.1400 0.0962 Actual/360 Amortizing Balloon 0 0
311 7.1900 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Original Remaining
Term to Term to Original Remaining
Control Maturity Maturity Amortization Amortization Origination Maturity Balloon
No. (Mos.) (Mos.) Term (Mos.) Term (Mos.) Date or ARD Balance ($) Property Type
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
246 120 117 300 297 1/22/98 2/1/08 $ 3,186,429 Industrial
247 120 116 360 356 12/31/97 1/1/08 3,445,120 Multifamily
248 84 80 300 296 12/11/97 1/1/05 3,435,073 Retail - Anchored
249 120 115 360 355 11/25/97 12/1/07 3,396,051 Multifamily
250 181 177 336 336 12/19/97 2/1/13 2,977,919 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
251 120 118 330 328 2/13/98 3/1/08 3,203,336 Retail - Anchored
252 120 117 360 357 1/20/98 2/1/08 3,335,034 Retail - Anchored
253 120 116 360 356 12/18/97 1/1/08 3,279,793 Multifamily
254 120 116 360 356 12/15/97 1/1/08 3,323,922 Multifamily
255 240 238 240 238 2/11/98 3/1/18 118,616 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
256 236 232 236 232 12/22/97 9/1/17 - CTL
257 120 117 360 357 1/13/98 2/1/08 3,285,430 Multifamily
258 120 119 300 299 3/6/98 4/1/08 3,089,220 Health Care - Skilled Nursing
259 120 116 360 356 12/31/97 1/1/08 3,255,519 Retail - Anchored
260 120 117 300 297 1/29/98 2/1/08 2,950,561 Hotel - Limited Service
- -------------------------------------------------------------------------------------------------------------------------------
261 234 228 294 288 10/31/97 5/1/17 1,324,996 CTL
262 120 116 360 356 12/16/97 1/1/08 3,205,398 Office
263 240 239 360 359 3/2/98 4/1/18 2,239,627 Office
264 120 118 360 358 2/24/98 3/1/08 3,149,923 Industrial
265 120 118 360 358 1/30/98 3/1/08 3,142,446 Office
- -------------------------------------------------------------------------------------------------------------------------------
266 300 298 300 298 2/3/98 3/1/23 - Retail - Anchored
267 120 117 360 357 1/30/98 2/1/08 3,093,159 Multifamily
268 120 117 360 357 1/9/98 2/1/08 3,173,997 Multifamily
269 120 117 360 357 1/6/98 2/1/08 3,172,397 Retail - Anchored
270 120 119 360 359 3/12/98 4/1/08 3,115,391 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
271 120 119 360 359 3/26/98 4/1/08 3,138,597 Industrial
272 120 119 360 359 3/11/98 4/1/08 3,138,046 Office
273 84 83 300 299 3/2/98 4/1/05 3,100,869 Retail - Anchored
274 120 118 300 298 2/25/98 3/1/08 2,859,047 Retail - Unanchored
275 120 119 360 359 3/12/98 4/1/08 3,028,369 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
276 120 120 360 360 3/28/98 5/1/08 3,065,706 Retail - Anchored
277 120 119 300 299 3/6/98 4/1/08 2,842,082 Health Care - Skilled Nursing
278 180 176 300 296 12/19/97 1/1/13 2,282,705 Health Care - Skilled Nursing
279 180 177 360 357 1/22/98 2/1/13 2,650,183 Multifamily
280 120 117 360 357 1/12/98 2/1/08 2,962,054 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
281 240 235 240 235 11/7/97 12/1/17 133,657 Hotel - Limited Service
282 240 234 240 234 10/29/97 11/1/17 - CTL
283 180 178 360 358 2/9/98 3/1/13 2,592,085 Retail - Unanchored
284 120 118 300 298 2/12/98 3/1/08 2,762,055 Office
285 120 117 360 357 1/29/98 2/1/08 2,946,491 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
286 120 116 360 356 12/4/97 1/1/08 3,006,441 Multifamily
287 120 116 360 356 12/31/97 1/1/08 2,991,558 Retail - Anchored
288 120 116 360 356 12/15/97 1/1/08 2,970,536 Multifamily
289 120 117 240 237 1/28/98 2/1/08 2,342,918 Office
290 240 237 240 237 1/9/98 2/1/18 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
291 180 180 360 360 4/3/98 5/1/13 2,593,554 Multifamily
292 84 80 360 356 12/31/97 1/1/05 3,101,626 Multifamily
293 120 119 240 239 3/24/98 4/1/08 2,295,825 Retail - Unanchored
294 180 178 180 178 2/9/98 3/1/13 70,791 Industrial
295 240 236 294 290 12/22/97 1/1/18 1,119,966 CTL
- -------------------------------------------------------------------------------------------------------------------------------
296 120 118 360 358 2/20/98 3/1/08 2,898,748 Self Storage
297 120 118 360 358 2/27/98 3/1/08 2,888,567 Multifamily
298 120 117 360 357 1/9/98 2/1/08 2,913,881 Retail - Unanchored
298a Office
- -------------------------------------------------------------------------------------------------------------------------------
298b Retail - Unanchored
299 300 297 300 297 2/1/98 2/1/23 - Multifamily - Section 42
300 120 116 360 356 12/31/97 1/1/08 2,903,794 Office
301 120 117 300 297 1/21/98 2/1/08 2,667,308 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
302 120 117 360 357 1/22/98 2/1/08 2,848,841 Multifamily
303 240 234 240 234 10/29/97 11/1/17 - Multifamily
304 120 116 360 356 12/31/97 1/1/08 2,856,288 Multifamily
305 120 119 300 299 3/23/98 4/1/08 2,630,560 Mixed Use
306 120 116 360 356 12/31/97 1/1/08 2,859,579 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
307 120 117 360 357 1/23/98 2/1/08 2,815,691 Multifamily
308 180 175 360 355 11/26/97 12/1/12 2,503,965 Multifamily
309 120 115 360 355 11/14/97 12/1/07 2,830,309 Multifamily
310 120 119 360 359 3/25/98 4/1/08 2,801,721 Multifamily
311 120 117 360 357 1/22/98 2/1/08 2,803,390 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Annual
Control Debt Net Appraised
No. Prepayment Provisions Service ($) Cash Flow ($) DSCR (x) Value ($)
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
246 L(4),D(5.75),O(.25) $ 345,560 $ 465,545 1.35x $ 7,000,000
247 L(5),3(1),2(1),1(1),O(2) 327,553 433,845 1.32 5,620,000
248 L(3),D(3.5),O(.5) 340,145 545,158 1.60 6,630,000
249 L(4),D(5.83),O(.17) 321,330 404,188 1.26 4,800,000
250 L(5),3(1),2(1),1(7.583),O(.5) or D(Borr) 317,448 464,324 1.46 6,550,000
- ------------------------------------------------------------------------------------------------------------------------------
251 L(5),D(4.75),O(.25) 314,723 403,661 1.28 5,300,000
252 L(4),D(5.5),O(.5) 311,382 434,738 1.40 5,150,000
253 L(4),D(5.5),O(.5) 311,072 437,914 1.41 5,100,000
254 L(4),D(6) 307,216 482,965 1.57 4,700,000
255 L(5),D(14.75),O(.25) 348,083 574,129 1.65 5,860,000
- ------------------------------------------------------------------------------------------------------------------------------
256 L(8),D(11.67) 358,216 368,962 NAP 4,375,000
257 L(4),D(5.75),O(.25) 302,917 371,431 1.23 4,700,000
258 L(5),D(4.75),O(.25) 346,423 792,539 2.29 7,910,000
259 L(4),D(5.75),O(.25) 305,994 445,634 1.46 4,900,000
260 L(5.33),D(4.42),O(.25) 319,700 506,538 1.58 5,500,000
- ------------------------------------------------------------------------------------------------------------------------------
261 L(8),YM1%(11.25),O(.25) or D(Borr) 318,649 328,208 NAP 3,800,000
262 L(4),D(5.75),O(.25) 305,649 399,534 1.31 5,485,000
263 L(10),YM1%(9.75),O(.25) 293,529 368,692 1.26 4,800,000
264 L(4),D(5.75),O(.25) 290,609 380,276 1.31 4,850,000
265 L(4),D(5.5),O(.5) 287,991 384,840 1.34 4,600,000
- ------------------------------------------------------------------------------------------------------------------------------
266 L(12),D(12.5),O(.5) 314,483 392,938 1.25 4,800,000
267 L(4),D(5.5),O(.5) 288,979 441,527 1.53 4,740,000
268 L(3),D(6.75),O(.25) 300,288 378,762 1.26 4,502,000
269 L(4),D(5.5),O(.5) 299,698 496,705 1.66 5,000,000
270 L(2),D(7.5),O(.5) 283,222 382,277 1.35 4,475,000
- ------------------------------------------------------------------------------------------------------------------------------
271 L(4),YM1%(5.5),O(.5) 298,449 402,556 1.35 4,750,000
272 L(5),D(4.83),O(.17) 298,245 383,749 1.29 5,000,000
273 L(2),YM1%(2),2(2),1(.5),O(.5) 313,113 626,896 2.00 11,300,000
274 L(4),D(5.83),O(.17) 315,173 504,760 1.60 6,500,000
275 L(2),D(7.5),O(.5) 275,311 370,540 1.35 4,350,000
- ------------------------------------------------------------------------------------------------------------------------------
276 L(4),YM1%(5.75),O(.25) 289,576 360,543 1.25 4,500,000
277 L(5),D(4.75),O(.25) 318,710 710,976 2.23 6,680,000
278 L(3),D(11.75),O(.25) 316,111 624,897 1.98 4,600,000
279 L(3),D(11.5),O(.5) 279,366 345,897 1.24 4,300,000
280 L(4),YM1%(4),O(2) 280,076 351,260 1.25 4,580,000
- ------------------------------------------------------------------------------------------------------------------------------
281 L(5),D(14.75),O(.25) 336,687 472,036 1.40 5,000,000
282 L(5),YM1%(15) or D(Borr) 324,616 418,803 NAP 4,920,000
283 L(7),D(6),O(2) 268,982 404,105 1.50 4,615,000
284 L(4),YM1%(5.5),O(.5) 301,243 395,855 1.31 4,700,000
285 L(4),YM1%(5.75),O(.25) 265,442 368,357 1.39 4,600,000
- ------------------------------------------------------------------------------------------------------------------------------
286 L(4),D(5.75),O(.25) 286,678 363,215 1.27 4,800,000
287 L(4),D(5.75),O(.25) 281,184 437,714 1.56 4,625,000
288 L(4),D(6) 274,554 404,855 1.47 4,200,000
289 L(4),D(5.75),O(.25) 325,198 443,407 1.36 5,000,000
290 L(8),YM1%(12) 329,252 330,240 NAP 3,500,000
- ------------------------------------------------------------------------------------------------------------------------------
291 L(2),D(13) 274,235 354,965 1.29 4,200,000
292 L(4),YM1%(2.5),O(.5) 273,142 383,516 1.40 4,200,000
293 L(4),D(5.75),O(.25) 316,028 405,263 1.28 4,800,000
294 L(6),D(8.75),O(.25) 371,233 501,809 1.35 5,300,000
295 L(8),YM1%(11.5),O(.5) or D(Borr) 294,144 300,914 NAP 3,500,000
- ------------------------------------------------------------------------------------------------------------------------------
296 L(4),D(5.75),O(.25) 270,410 414,710 1.53 5,100,000
297 L(4),D(5.75),O(.25) 266,793 347,986 1.30 4,300,000
298 L(4),D(5.75),O(.25) 276,889 366,594 1.32 4,440,000
298a 2,540,000
- ------------------------------------------------------------------------------------------------------------------------------
298b 1,900,000
299 L(10),1%(15) 334,018 401,215 1.20 4,370,000
300 L(4),D(5.83),O(.17) 272,995 460,961 1.69 4,700,000
301 L(4),D(5.83),O(.17) 288,941 391,735 1.36 4,500,000
- ------------------------------------------------------------------------------------------------------------------------------
302 L(4),D(5.75),O(.25) 259,356 328,893 1.27 4,100,000
303 L(4),YM1%(15.5),O(.5) 325,584 419,628 1.29 5,000,000
304 L(4),D(5.83),O(.17) 264,660 413,354 1.56 4,350,000
305 L(3),D(6),O(1) 285,043 371,216 1.30 5,300,000
306 L(4),D(5.75),O(.25) 268,779 486,982 1.81 4,850,000
- ------------------------------------------------------------------------------------------------------------------------------
307 L(4),D(5.83),O(.17) 255,648 356,447 1.39 4,320,000
308 L(2),YM1%(6),4(1),3(1),2(1),1(1),O(3) 266,105 475,448 1.79 6,500,000
309 L(4),D(5.83),O(.17) 265,088 380,616 1.44 4,025,000
310 L(4),D(5.75),O(.25) 259,097 333,855 1.29 4,000,000
311 L(4),YM1%(5.75),O(.25) 260,395 364,351 1.40 4,035,000
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten
Hospitality Sq. Ft., Loan per
Cut-off Scheduled Average Units Sq. Ft., Units
Control Appraisal Date Maturity Date Daily Year Year Bed, Pad Bed, Pad Occupancy
No. Year LTV (%) LTV (%) Rate ($) Built Renovated or Room or Room ($) Percentage (%)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
246 1997 56.1% 45.5% 1990 N/A 118,300 Sq. Ft. $ 33.31 95.8%
247 1997 69.2 61.3 1973 1982 240 Units 16,250.00 89.6
248 1997 58.5 51.8 1992 1992 25,390 Sq. Ft. 153.60 100.0
249 1997 79.9 70.8 1969 N/A 149 Units 25,838.93 94.6
250 1997 58.0 45.5 1988 N/A 54,426 Sq. Ft. 69.82 98.2
- --------------------------------------------------------------------------------------------------------------------------------
251 1997 71.6 60.4 1968 1989 86,997 Sq. Ft. 43.68 95.9
252 1997 73.6 64.8 1989-90 N/A 60,350 Sq. Ft. 62.97 88.1
253 1997 74.3 64.3 1980 N/A 224 Units 16,964.29 92.0
254 1997 80.6 70.7 1991 N/A 132 Units 28,787.88 98.5
255 1997 64.6 2.0 1974 1990 168,349 Sq. Ft. 22.57 91.9
- --------------------------------------------------------------------------------------------------------------------------------
256 1997 NAP 0.0 1997 N/A 44,000 Sq. Ft. 86.63 100.0
257 1997 79.8 69.9 1974 N/A 125 Units 30,080.00 91.0
258 1997 47.4 39.1 1957-1976 N/A 109 Beds 34,403.67 89.8
259 1997 75.3 66.4 1981-1982 N/A 140,543 Sq. Ft. 26.33 93.5
260 1997 66.1 53.7 $77.54 1958 1996-97 74 Rooms 49,324.32 NAP
- --------------------------------------------------------------------------------------------------------------------------------
261 1997 NAP 34.9 1997 N/A 44,000 Sq. Ft. 82.77 100.0
262 1997 65.9 58.4 1882 1996-97 63,174 Sq. Ft. 57.38 100.0
263 1998 74.9 46.7 1982 N/A 61,089 Sq. Ft. 58.93 100.0
264 1998 74.1 65.0 1973-85 N/A 121,612 Sq. Ft. 29.60 90.1
265 1997 78.2 68.3 1984 N/A 43,360 Sq. Ft. 83.03 99.2
- --------------------------------------------------------------------------------------------------------------------------------
266 1997 74.8 0.0 1985 N/A 77,643 Sq. Ft. 46.37 94.6
267 1997 75.8 65.3 1986 N/A 154 Units 23,376.62 88.0
268 1997 79.8 70.5 1978 N/A 157 Units 22,929.94 98.7
269 1997 71.8 63.5 1958,72 N/A 86,756 Sq. Ft. 41.50 100.0
270 1998 79.9 69.6 1977 N/A 168 Units 21,309.52 95.2
- --------------------------------------------------------------------------------------------------------------------------------
271 1998 74.7 66.1 1975,1978 N/A 102,412 Sq. Ft. 34.66 100.0
272 1998 71.0 62.8 1981 1995 46,421 Sq. Ft. 76.47 96.0
273 1998 30.9 27.4 1986 N/A 261,202 Sq. Ft. 13.40 89.3
274 1997 53.7 44.0 1986 N/A 36,856 Sq. Ft. 94.96 100.0
275 1998 79.9 69.6 1976 1995 135 Units 25,777.78 93.7
- --------------------------------------------------------------------------------------------------------------------------------
276 1998 77.2 68.1 1969 1996 48,035 Sq. Ft. 72.34 100.0
277 1997 51.6 42.6 1964,1976 N/A 109 Beds 31,651.38 89.0
278 1997 74.7 49.6 1986 N/A 120 Beds 28,750.00 93.3
279 1997 79.8 61.6 1969 N/A 104 Units 33,076.92 92.3
280 1997 74.8 64.7 1968 N/A 180 Units 19,083.33 92.2
- --------------------------------------------------------------------------------------------------------------------------------
281 1997 68.4 2.7 42.87 1994 N/A 120 Rooms 28,750.00 NAP
282 1997 NAP 0.0 1997 N/A 13,905 Sq. Ft. 247.09 100.0
283 1998 73.6 56.2 1997 N/A 23,051 Sq. Ft. 147.50 100.0
284 1997 72.2 58.8 1979 N/A 50,699 Sq. Ft. 67.06 90.2
285 1997 73.7 64.1 1982 N/A 110,357 Sq. Ft. 30.81 84.1
- --------------------------------------------------------------------------------------------------------------------------------
286 1997 70.6 62.6 1983 N/A 112 Units 30,357.14 91.0
287 1997 73.3 64.7 1982 N/A 133,007 Sq. Ft. 25.56 93.1
288 1997 80.6 70.7 1994 N/A 120 Units 28,300.00 95.0
289 1997 67.6 46.9 1961,72 1980's 100,315 Sq. Ft. 33.89 100.0
290 1997 NAP 0.0 1997 N/A 24,000 Sq. Ft. 140.84 100.0
- --------------------------------------------------------------------------------------------------------------------------------
291 1998 79.8 61.8 1972 N/A 93 Units 36,021.51 98.0
292 1997 79.7 73.9 1976-1978 N/A 147 Units 22,857.14 95.3
293 1998 69.7 47.8 1969-71 N/A 48,012 Sq. Ft. 69.77 100.0
294 1997 62.8 1.3 1994 N/A 228,250 Sq. Ft. 14.68 100.0
295 1997 NAP 32.0 1997 N/A 13,943 Sq. Ft. 237.65 100.0
- --------------------------------------------------------------------------------------------------------------------------------
296 1997 64.6 56.8 1986-89 N/A 924 Units 3,571.43 93.0
297 1997 76.6 67.2 1989 N/A 96 Units 34,375.00 100.0
298 1997 74.1 65.6 68,664 Sq. Ft. 48.06 94.4
298a 1997 1985 N/A 37,804 Sq. Ft. 100.0
- --------------------------------------------------------------------------------------------------------------------------------
298b 1997 1985 N/A 30,860 Sq. Ft. 86.9
299 1997 75.3 0.0 1965 1996 172 Units 19,186.05 98.8
300 1997 70.0 61.8 1891 1985 86,417 Sq. Ft. 38.19 95.7
301 1997 73.1 59.3 1996 N/A 45,800 Sq. Ft. 72.05 100.0
- --------------------------------------------------------------------------------------------------------------------------------
302 1997 79.7 69.5 1986 N/A 72 Units 45,486.11 98.6
303 1997 65.3 0.0 1969 N/A 239 Units 13,807.53 97.9
304 1997 74.8 65.7 1972 1997 128 Units 25,488.28 100.0
305 1998 61.3 49.6 1916 N/A 103,936 Sq. Ft. 31.27 100.0
306 1997 66.8 59.0 1982 N/A 178,725 Sq. Ft. 18.18 89.7
- --------------------------------------------------------------------------------------------------------------------------------
307 1997 74.8 65.2 1977 1997 116 Units 27,931.03 92.3
308 1997 49.4 38.5 1973 N/A 262 Units 12,309.16 92.0
309 1997 79.7 70.3 1984 1996 182 Units 17,692.31 92.0
310 1998 79.9 70.0 1989 N/A 28 Units 114,285.71 100.0
311 1998 79.1 69.5 1989 N/A 100 Units 32,000.00 98.0
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Tenant
------------------------------------------------------------------------------
Tenant
Control Rent Roll Underwriting Area Leased Lease
No. Date Reserves ($) per Tenant Name (Sq. Ft.) Exp Date
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
246 1/1/98 $0.19 Sq. Ft. Fischer International 25,400 12/31/99
247 12/8/97 200.00 Unit
248 9/1/97 0.08 Sq. Ft. Barnes And Noble Bookstore 15,875 5/31/02
249 7/1/97 340.00 Unit
250 2/28/98 0.31 Sq. Ft. Home Mart 11,171 5/31/07
- ------------------------------------------------------------------------------------------------------------------------------------
251 2/13/98 0.13 Sq. Ft. Shop N Bag Supermarket 25,785 3/31/03
252 12/23/97 0.43 Sq. Ft. Walmart (Shadow) NAV NAV
253 10/8/97 200.00 Unit
254 12/8/97 200.00 Unit
255 8/1/97 0.19 Sq. Ft. Kroger 54,729 6/30/16
- ------------------------------------------------------------------------------------------------------------------------------------
256 5/1/98 0.25 Sq. Ft. Winn Dixie Stores, Inc. 44,000 10/15/17
257 11/25/97 198.40 Unit
258 11/21/97 350.00 Bed
259 12/1/97 0.15 Sq. Ft. Winn Dixie 35,360 12/8/08
260 NAP 4% of Gross Revenue Room
- ------------------------------------------------------------------------------------------------------------------------------------
261 5/1/98 0.15 Sq. Ft. Winn-Dixie, Charlotte, Inc. 44,000 6/18/17
262 11/12/97 0.21 Sq. Ft. Mimms Enterprises 13,453 8/31/02
263 12/1/97 0.39 Sq. Ft. Rocky Mountain Marketing 16,689 3/10/03
264 2/10/98 0.19 Sq. Ft.
265 12/30/97 0.26 Sq. Ft. Science Applic. 3,344 10/31/99
- ------------------------------------------------------------------------------------------------------------------------------------
266 1/12/98 0.19 Sq. Ft. Bi-Lo 26,853 4/30/08
267 12/1/97 252.49 Unit
268 11/26/97 225.00 Unit
269 1/1/98 0.33 Sq. Ft. Smart & Final 24,000 1/31/07
270 3/6/98 221.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
271 10/1/97 0.15 Sq. Ft. Webtron Corp. 102,412 2/28/03
272 2/1/98 0.16 Sq. Ft. Western International Forest Products 12,105 7/31/01
273 7/7/97 0.24 Sq. Ft. ABCO Foods (Simons) 35,000 11/30/06
274 1/31/98 0.46 Sq. Ft. Lamps Plus 11,808 1/31/01
275 12/22/97 216.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
276 3/27/96 0.16 Sq. Ft. Best Buy 48,035
277 11/27/97 350.00 Bed
278 0 300.00 Bed
279 8/1/97 250.00 Unit
280 11/1/97 239.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
281 NAP 4% of Gross Revenue Room
282 5/1/98 0.31 Sq. Ft. Walgreens 13,905 11/30/57
283 1/5/98 0.10 Sq. Ft. Rite Aid 11,798 7/31/07
284 11/6/97 0.16 Sq. Ft. Chase Credit Companies 17,432 8/31/03
285 11/4/97 0.15 Sq. Ft. Safeway 40,157 7/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
286 12/2/97 211.00 Unit
287 12/1/97 0.15 Sq. Ft. Winn Dixie 35,195 2/28/08
288 12/8/97 200.00 Unit
289 12/24/97 0.15 Sq. Ft. NYS Department of Labor 97,097 10/31/07
290 5/1/98 0.10 Sq. Ft. Staples, Inc. 24,000 3/31/18
- ------------------------------------------------------------------------------------------------------------------------------------
291 3/25/98 150.00 Unit
292 12/1/97 215.00 Unit
293 2/6/98 0.17 Sq. Ft. Ara Melkonian and Haiganosh Melkonian 6,160 11/30/00
294 0 0.07 Sq. Ft. Warehouse Specialists, Inc. 228,250 3/1/13
295 5/1/98 0.15 Sq. Ft. Bond Drug Comany of Illinois (Walgreen) 13,943 10/31/57
- ------------------------------------------------------------------------------------------------------------------------------------
296 1/27/98 19.08 Unit
297 2/24/98 263.00 Unit
-
298 11/1/97 0.29 Sq. Ft.
298a 10/29/97 0.27 Sq. Ft. Syscon Corporation 16,171 12/31/99
- ------------------------------------------------------------------------------------------------------------------------------------
298b 11/13/97 0.30 Sq. Ft. Morrisette & Hammond, Inc. 5,260 4/30/02
-
299 10/24/97 240.00 Unit
300 11/18/97 0.20 Sq. Ft. Comcorp Inc. 12,334 5/31/99
301 5/1/98 0.10 Sq. Ft. Best Buy 45,056 12/22/17
- ------------------------------------------------------------------------------------------------------------------------------------
302 1/8/98 200.00 Unit
303 7/31/97 250.00 Unit
304 11/17/97 203.00 Unit
305 12/29/97 0.16 Sq. Ft. Village Automotive Group, Inc 46,700 11/1/03
306 12/1/97 0.16 Sq. Ft. Wal-Mart 45,570 11/7/03
- ------------------------------------------------------------------------------------------------------------------------------------
307 1/6/98 250.87 Unit
308 11/1/97 252.00 Unit
309 10/30/97 251.00 Unit
310 3/1/98 200.00 Unit
311 12/15/97 200.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2nd Largest Tenant 3rd Largest Tenant
--------------------------------------------------------- -------------------------------------------------------------
Tenant Tenant
Control Area Leased Lease Area Leased Lease Control
No. Tenant Name (Sq. Ft.) Exp Date Tenant Name (Sq. Ft.) Exp Date No.
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
246 Gorman Company 18,000 4/30/00 US Post Office 15,000 6/1/03 246
247 247
248 Blockbuster 7,131 12/31/99 248
249 249
250 Pier One Imports 9,386 2/28/08 Sleep Time 5,000 10/31/02 250
- ------------------------------------------------------------------------------------------------------------------------------------
251 Eckerd Drug/Thrift Drug 6,400 12/31/99 Tele-Research 5,770 4/30/01 251
252 Gold's Gym 11,800 6/24/04 Cato Fashions 6,000 1/31/01 252
253 253
254 254
255 Heironimus 38,360 1/31/05 Revco 14,720 8/31/98 255
- ------------------------------------------------------------------------------------------------------------------------------------
256 256
257 257
258 258
259 Goody's 32,005 5/31/02 Eastern Kentucky University 27,411 6/30/98 259
260 260
- ------------------------------------------------------------------------------------------------------------------------------------
261 261
262 Events Limited 10,000 3/28/96 Randall Paulson Architects 8,500 9/30/03 262
263 Luzenac America 16,689 7/20/99 CRP Aquisition 15,268 12/16/04 263
264 264
265 Carpenter Ins. 2,780 12/31/00 American Academy 1,809 6/30/99 265
- ------------------------------------------------------------------------------------------------------------------------------------
266 K-Mart Corp. 15,440 6/30/08 Blockbuster SC Music Corp. 5,950 7/31/98 266
267 267
268 268
269 Eckerd 10,000 10/24/03 Gem Physical Therapy 5,000 8/30/02 269
270 270
- ------------------------------------------------------------------------------------------------------------------------------------
271 271
272 Crossland Mortgage Corp. 4,656 2/28/98 American Show Management 3,941 3/31/99 272
273 Goldens Health Club 30,893 8/2/02 Cloth World 21,638 1/31/02 273
274 Krauses Sofa Factory 9,650 8/31/00 Elegant Lace 4,060 12/31/04 274
275 275
- ------------------------------------------------------------------------------------------------------------------------------------
276 276
277 277
278 278
279 279
280 280
- ------------------------------------------------------------------------------------------------------------------------------------
281 281
282 282
283 Kinko's of Washington, Inc. 8,013 8/14/07 Einstein Bros. Bagels 1,645 6/14/07 283
284 American Pacific State Bank 11,581 9/30/99 Fidelity Federal Savings 4,200 8/16/99 284
285 Thrifty Drug 19,545 5/31/02 Lakeside Entertainment 10,001 3/31/02 285
- ------------------------------------------------------------------------------------------------------------------------------------
286 286
287 Big Lots 29,697 1/31/02 Rite Aid 14,690 5/31/01 287
288 288
289 NYS Dept. of Labor (Worker's Comp Bd.) 3,218 NAV 289
290 290
- ------------------------------------------------------------------------------------------------------------------------------------
291 291
292 292
293 Central Auto Body 5,867 8/31/01 KLS Motors 4,085 7/31/01 293
294 294
295 295
- ------------------------------------------------------------------------------------------------------------------------------------
296 296
297 297
298 298
298aLogicon Syscon, Inc. 6,675 5/31/02 Office Pro Technology 5,761 5/31/00 298a
- ------------------------------------------------------------------------------------------------------------------------------------
298bRap, Inc. 3,328 2/28/98 Colonial Outdoors, Inc. 2,948 5/31/00 298b
299 299
300 300
301 301
- ------------------------------------------------------------------------------------------------------------------------------------
302 302
303 303
304 304
305 Maverick Designs 11,830 1/31/00 Hydrotherapy Supply company 7,430 7/31/99 305
306 Winn-Dixie 30,625 8/25/02 Eastern Kentucky University 13,032 6/30/00 306
- ------------------------------------------------------------------------------------------------------------------------------------
307 307
308 308
309 309
310 310
311 311
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Control
No. Property Name Address
==========================================================================================================================
<S> <C> <C>
312 Hillside Village Plaza 50 Route 111
313 Access Self Storage of Wayne 575 Route 23
314 Kaiser Permanente Health Center 65 Kane Street
315 Winn Dixie Morganton 111 Independence Boulevard
316 Swall Towers West 311 S. Swall Drive
- --------------------------------------------------------------------------------------------------------------------------
317 Wind & Sea Shopping Center 4140-4150 Capitola Road
318 Grandview 1319 E. 45th Street
319 Salt Lake Medical Plaza Office Building 24 South 1100 East
320 Pep Boys Union 2525 U.S. Highway 22
321 9031 Snowden Square Drive 9031 Snowden Square Drive
- --------------------------------------------------------------------------------------------------------------------------
322 Carriage Hills Apartments 114-116 Surrey Circle
323 Village on the Pike Shopping Center 2940 Covington Pike
324 101 Park Avenue 101 Park Avenue
325 San Leandro Furniture Center 2756 Alvarado Boulevard
326 General Cinema 4016 East 82nd Street
- --------------------------------------------------------------------------------------------------------------------------
327 Westlake Commerce Center 31121-31131 Via Colinas
328 Valencia Gardens Apartments 2704 to 2734 Juniper Avenue
329 Barnes & Noble 12170 Jefferson Avenue
330 Mcghan Medical Buildings 5511, 5531, 5551, & 5571 Ekwill Street
331 Woodmere Apartments 2135 West County Line Road
- --------------------------------------------------------------------------------------------------------------------------
332 Safeway Milton Freewater 455 North Columbia St.
333 Rite Aid Portage Westnedge Avenue and Kilgore Road
334 Rain Forest Apartments 17714 Red Oak Drive
335 Nexstar Pharmaceuticals Building 2860 Wilderness Place
336 Meadowrock Apartments 1598 Becky Court
- --------------------------------------------------------------------------------------------------------------------------
337 544 Lawrence Expressway 540-548 Lawrence Expressway
338 Courtyard At Scottsdale North 9160 East Shea Boulevard
339 Mountain Vista Apartments 4400 E Busby Drive
340 Walgreen St John 9280 Wicker Avenue
341 Timberfalls Apartments 2600 East 113th Ave.
- --------------------------------------------------------------------------------------------------------------------------
342 Chancellor Care Center of Delmar 101 E. Delaware Avenue
343 118 South Clinton Street 118 S Clinton Street
344 University Village Shopping Center 2441, 2529-2539 University Boulevard
345 Walgreen Lafayette SEC 18TH Street and State Road 26
346 Northfield Lodge 603 East Northfield Boulevard
- --------------------------------------------------------------------------------------------------------------------------
347 Greenbrier Valley Mall U.S. Route 219
348 Somserset Chambers 156-158 Summer Street
349 Village Plaza of Margate 1360-1456 N. State Rd. 7
350 Bentley Avenue Apartments 1633 South Bentley Avenue
351 Pheasant Glen 447 West Clinton Avenue
- --------------------------------------------------------------------------------------------------------------------------
352 Maple Plaza Shopping Center 1102-1198 E. West Maple Road
353 11312 Westheimer Shopping Center 11312 Westheimer
354 Old Country Plaza 3940 Plank Road Road
355 West Court Office Building 2448 Holly Avenue
356 Walgreen Miami 9675 Northwest 41st Street
- --------------------------------------------------------------------------------------------------------------------------
357 Paradise Shopping Plaza NEQ of 40th Street and Thunderbird Road
358 Century Analysis, Inc., Building 60 Berry Drive
359 Americana Apartments 3701 East Chapman Avenue
360 Warehouse Specialists - Stevens Point I & II 4400 Industrial Park Rd. & 2557 Leahy Court
361 Dolly Creek Shopping Center 2409 Acton Road
- --------------------------------------------------------------------------------------------------------------------------
362 Littleton Lyne 119-125 Littleton Road
363 Raintree Apartments 7601 North 9th Avenue
364 Auburn Blvd Mini Storage 6230 Auburn Blvd
365 Springs Office Building 2101 West State Road 434
366 Covington Club Apartments 1308 W. Covington Court
- --------------------------------------------------------------------------------------------------------------------------
367 Park East Apartments 1845 Summit Place, N.W.
368 Shadow Trail Apartments 15520 Foothill Boulevard
369 Inn at Saratoga 20645 Fourth Street
370 Regency Park Apartments 2973 West Swain Road
371 Marketplace at Ken Caryl 10143 West Chatfield Avenue
- --------------------------------------------------------------------------------------------------------------------------
372 Three West Carillo Building 931-939 State Street
373 Linda Granada 16600 San Fernanado Mission
374 633 Building 633 Germantown Pike
375 Shoreline View Alzheimer Care Center 9324 North Harborview Drive
376 Tudor Gardens Apartments 15128-15144 Burbank Blvd
- --------------------------------------------------------------------------------------------------------------------------
377 Cobblestone Village 1237-1263 North Riverside Av.
378 K-Mart Plaza Shopping Center (Galveston) 6105-6327 Stewart Road
379 303 Winding Road 303 Winding Road
380 West Sahara Mini Storage 6318 West Sahara Avenue
381 Amerihost Inn - Hammond 7813 Indianapolis Boulevard
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial
No. City State Code Groups Balance ($) Balance ($) Balance Pool Balance
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
312 Smithtown NY 11787 $ 3,200,000 $ 3,191,710.26 0.09% 80.23%
313 Wayne Township NJ 07470 3,200,000 3,188,308.05 0.09 80.32
314 West Hartford CT 06119 3,200,000 3,184,959.64 0.09 80.41
315 Morganton NC 28655 3,173,928 3,154,360.17 0.09 80.50
316 Los Angeles CA 90048 3,150,000 3,147,488.47 0.09 80.60
- ------------------------------------------------------------------------------------------------------------------------------------
317 Capitola CA 95010 3,150,000 3,146,055.81 0.09 80.69
318 Kearny NE 68847 3,154,000 3,143,820.62 0.09 80.78
319 Salt Lake City UT 84102 3,146,561 3,134,338.76 0.09 80.87
320 Union Township NJ 07083 3,137,611 3,124,248.80 0.09 80.96
321 Columbia MD 21045 3,150,000 3,117,577.56 0.09 81.05
- ------------------------------------------------------------------------------------------------------------------------------------
322 Chamblee GA 30341 3,160,000 3,113,343.36 0.09 81.14
323 Memphis TN 38134 3,100,000 3,097,528.33 0.09 81.22
324 Oklahoma City OK 73102 3,100,000 3,093,350.46 0.09 81.31
325 San Leandro CA 94577 3,100,000 3,093,291.66 0.09 81.40
326 Indianapolis IN 46250 3,100,000 3,090,238.46 0.09 81.49
- ------------------------------------------------------------------------------------------------------------------------------------
327 Westlake Village CA 91362 3,100,000 3,086,819.64 0.09 81.58
328 Boulder CO 80301 3,080,000 3,071,470.37 0.09 81.67
329 Newport News VA 23602 3,070,000 3,058,550.65 0.09 81.76
330 Goleta CA 93111 3,045,000 3,033,799.44 0.09 81.84
331 Jackson NJ 08527 3,040,000 3,032,111.26 0.09 81.93
- ------------------------------------------------------------------------------------------------------------------------------------
332 Milton Freewater OR 98762 3,032,576 3,022,231.31 0.09 82.02
333 Portage MI 49081 3,010,493 3,010,493.00 0.09 82.11
334 Houston TX 77090 3,000,000 2,997,655.06 0.09 82.19
335 Boulder CO 80301 3,000,000 2,997,612.80 0.09 82.28
336 Santa Rosa CA 95403 3,000,000 2,997,495.94 0.09 82.36
- ------------------------------------------------------------------------------------------------------------------------------------
337 Sunnyvale CA 95086 3,000,000 2,996,584.65 0.09 82.45
338 Scottsdale AZ 85257 3,000,000 2,989,267.88 0.09 82.54
339 Sierra Vista AZ 85635 3,000,000 2,988,062.61 0.09 82.62
340 St. John IN 46373 2,960,504 2,960,504.00 0.09 82.71
341 Tampa FL 33612 2,960,000 2,955,617.80 0.09 82.79
- ------------------------------------------------------------------------------------------------------------------------------------
342 Delmar DE 19940 2,960,000 2,944,904.07 0.08 82.88
343 Chicago IL 60661 2,950,000 2,940,903.52 0.08 82.96
344 Houston TX 77005 2,950,000 2,936,468.90 0.08 83.05
345 Lafayette IN 47905 2,922,389 2,922,389.00 0.08 83.13
346 Murfreesboro TN 37130 2,908,000 2,897,305.71 0.08 83.21
- ------------------------------------------------------------------------------------------------------------------------------------
347 Fairlea WV 24901 Group G 2,900,000 2,891,052.37 0.08 83.30
348 Summerville MA 02143 2,880,000 2,876,550.45 0.08 83.38
349 Margate FL 33063 2,850,000 2,843,054.28 0.08 83.46
350 Los Angeles CA 90025 2,850,000 2,836,527.64 0.08 83.54
351 State College PA 16803 2,822,000 2,815,365.88 0.08 83.62
- ------------------------------------------------------------------------------------------------------------------------------------
352 Walled Lake MI 48390 2,800,000 2,792,929.95 0.08 83.70
353 Houston TX 77077 2,800,000 2,791,474.94 0.08 83.78
354 Fredericksburg VA 22407 2,800,000 2,778,954.47 0.08 83.86
355 Annapolis MD 21401 2,750,000 2,745,987.29 0.08 83.94
356 Miami FL 33178 2,745,744 2,718,069.24 0.08 84.02
- ------------------------------------------------------------------------------------------------------------------------------------
357 Phoenix AZ 85032 2,700,000 2,697,988.17 0.08 84.10
358 Pacheco CA 94553 2,700,000 2,696,563.47 0.08 84.18
359 Orange CA 92869 2,700,000 2,688,048.26 0.08 84.25
360 Stevens Point WI 54481 Group H 2,700,000 2,684,112.12 0.08 84.33
361 Vestavia Hills AL 35243 2,675,000 2,672,871.41 0.08 84.41
- ------------------------------------------------------------------------------------------------------------------------------------
362 Ayer MA 01432 2,670,000 2,656,383.08 0.08 84.49
363 Pensacola FL 32514 2,660,000 2,652,844.86 0.08 84.56
364 Citrus Heights CA 95621 2,650,000 2,639,793.95 0.08 84.64
365 Altomonta Springs/Longwood FL 32714 2,650,000 2,639,786.71 0.08 84.71
366 Peoria IL 61614 2,600,000 2,596,257.41 0.07 84.79
- ------------------------------------------------------------------------------------------------------------------------------------
367 Washington DC 20009 2,600,000 2,596,160.04 0.07 84.86
368 Sylmar CA 91342 2,600,000 2,593,160.14 0.07 84.94
369 Saratoga CA 95070 2,600,000 2,588,127.92 0.07 85.01
370 Stockton CA 95207 2,600,000 2,587,545.22 0.07 85.09
371 Littleton CO 80127 2,550,000 2,547,125.71 0.07 85.16
- ------------------------------------------------------------------------------------------------------------------------------------
372 Santa Barbara CA 93101 2,550,000 2,546,696.96 0.07 85.23
373 Granda Hills CA 91344 2,550,000 2,542,686.75 0.07 85.31
374 Plymouth Meeting PA 19401 2,550,000 2,540,682.96 0.07 85.38
375 Gig Harbor WA 98332 2,550,000 2,538,946.43 0.07 85.45
376 Los Angeles CA 91411 2,550,000 2,538,067.74 0.07 85.53
- ------------------------------------------------------------------------------------------------------------------------------------
377 Medford OR 97501 2,500,000 2,500,000.00 0.07 85.60
378 Galveston TX 77551 2,500,000 2,494,392.42 0.07 85.67
379 Bethpage NY 11804 2,500,000 2,491,811.51 0.07 85.74
380 Las Vegas NV 89102 2,500,000 2,489,026.58 0.07 85.81
381 Hammond IN 46324 2,500,000 2,481,770.36 0.07 85.88
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Interest Original Remaining
Control Mortgage Administrative Accrual Amortization Interest-Only Interest-Only
No. Rate (%) Cost Rate (%) Method Type Period (Mos.) Period (Mos.)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
312 7.1800% 0.1462% Actual/360 Amortizing Balloon 0 0
313 7.5000 0.0962 Actual/360 Amortizing Balloon 0 0
314 7.6500 0.1262 Actual/360 Amortizing Balloon 0 0
315 7.0000 0.0962 30/360 Fully Amortizing 0 0
316 7.1400 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
317 7.5840 0.0962 Actual/360 Amortizing Balloon 0 0
318 7.1250 0.0962 Actual/360 Amortizing Balloon 0 0
319 7.0700 0.1462 Actual/360 Amortizing Balloon 0 0
320 7.4100 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
321 7.8750 0.0962 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
322 8.1200 0.0962 Actual/360 Amortizing Balloon 0 0
323 7.1400 0.0962 Actual/360 Amortizing Balloon 0 0
324 7.3300 0.0962 Actual/360 Amortizing Balloon 0 0
325 7.2830 0.0962 Actual/360 Amortizing Balloon 0 0
326 7.2500 0.1012 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
327 7.5630 0.0962 Actual/360 Amortizing Balloon 0 0
328 6.7900 0.1462 Actual/360 Amortizing (ARD) 0 0
329 7.3560 0.0962 Actual/360 Amortizing Balloon 0 0
330 7.3290 0.0962 Actual/360 Amortizing Balloon 0 0
331 7.1700 0.0962 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
332 7.2500 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
333 7.1250 0.0962 30/360 Amortizing Balloon 0 0
334 7.2400 0.0962 Actual/360 Amortizing Balloon 0 0
335 7.1500 0.1462 Actual/360 Amortizing Balloon 0 0
336 6.9080 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
337 7.5080 0.0962 Actual/360 Amortizing Balloon 0 0
338 7.4570 0.0962 Actual/360 Amortizing Balloon 0 0
339 7.2100 0.0962 30/360 Amortizing Balloon 0 0
340 7.0000 0.0962 30/360 Fully Amortizing 0 0
341 6.9100 0.1462 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
342 8.0000 0.0962 Actual/360 Amortizing Balloon 0 0
343 7.3560 0.0962 Actual/360 Amortizing Balloon 0 0
344 9.0100 0.1712 Actual/360 Amortizing Balloon 0 0
345 6.8750 0.0962 30/360 Fully Amortizing 0 0
346 7.3300 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
347 7.3530 0.0962 Actual/360 Amortizing (ARD) 0 0
348 7.1900 0.0962 30/360 Fully Amortizing 0 0
349 7.5000 0.0962 Actual/360 Fully Amortizing 0 0
350 7.6250 0.0962 Actual/360 Amortizing Balloon 0 0
351 8.7000 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
352 7.3300 0.1462 Actual/360 Amortizing (ARD) 0 0
353 7.4200 0.1462 Actual/360 Amortizing Balloon 0 0
354 7.2500 0.0962 Actual/360 Fully Amortizing 0 0
355 6.9700 0.1462 Actual/360 Amortizing (ARD) 0 0
356 7.5000 0.0962 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
357 7.4800 0.0962 Actual/360 Amortizing Balloon 0 0
358 7.5200 0.1462 Actual/360 Amortizing (ARD) 0 0
359 7.3750 0.0962 Actual/360 Amortizing Balloon 0 0
360 7.4375 0.0962 Actual/360 Fully Amortizing 0 0
361 7.1500 0.1162 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
362 8.0000 0.0962 Actual/360 Amortizing Balloon 0 0
363 6.9600 0.0962 Actual/360 Amortizing Balloon 0 0
364 7.1300 0.0962 Actual/360 Amortizing Balloon 0 0
365 7.1250 0.0962 Actual/360 Amortizing Balloon 0 0
366 7.0260 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
367 6.9200 0.1462 Actual/360 Amortizing (ARD) 0 0
368 7.0900 0.1462 Actual/360 Amortizing (ARD) 0 0
369 7.5500 0.1462 Actual/360 Amortizing (ARD) 0 0
370 7.5670 0.0962 Actual/360 Amortizing Balloon 0 0
371 7.5700 0.1462 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
372 7.4510 0.0962 Actual/360 Amortizing Balloon 0 0
373 7.7200 0.0962 Actual/360 Amortizing Balloon 0 0
374 7.5000 0.0962 Actual/360 Amortizing Balloon 0 0
375 7.8750 0.0962 Actual/360 Amortizing Balloon 0 0
376 7.1130 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
377 7.2500 0.0962 Actual/360 Amortizing Balloon 0 0
378 7.0900 0.1462 Actual/360 Amortizing (ARD) 0 0
379 7.0500 0.0962 Actual/360 Amortizing (ARD) 0 0
380 7.7970 0.0962 Actual/360 Amortizing Balloon 0 0
381 7.5000 0.0962 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Original Remaining
Term to Term to Original Remaining
Control Maturity Maturity Amortization Amortization Origination Maturity Balloon
No. (Mos.) (Mos.) Term (Mos.) Term (Mos.) Date or ARD Balance ($) Property Type
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
312 120 117 360 357 1/30/98 2/1/08 $ 2,802,665 Office
313 120 117 300 297 1/20/98 2/1/08 2,597,680 Self Storage
314 120 113 360 353 9/23/97 10/1/07 2,837,229 Office
315 232 229 232 229 1/30/98 6/1/17 - CTL
316 120 119 360 359 3/25/98 4/1/08 2,757,945 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
317 120 118 360 358 2/23/98 3/1/08 2,789,886 Retail - Unanchored
318 120 116 360 356 12/15/97 1/1/08 2,758,855 Multifamily
319 120 117 300 297 1/5/98 2/1/08 2,521,177 Office
320 238 234 238 234 12/18/97 11/1/17 - CTL
321 240 234 240 234 10/20/97 11/1/17 129,747 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
322 60 51 240 231 7/17/97 8/1/02 2,792,119 Multifamily
323 120 119 360 359 3/11/98 4/1/08 2,714,167 Retail - Anchored
324 120 118 300 298 2/23/98 3/1/08 2,506,174 Office
325 120 118 300 298 2/18/98 3/1/08 2,502,582 Industrial
326 180 176 360 356 12/31/97 1/1/13 2,397,573 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
327 120 114 360 354 10/30/97 11/1/07 2,742,168 Industrial
328 120 117 360 357 1/12/98 2/1/08 2,669,896 Multifamily
329 120 117 300 297 1/21/98 2/1/08 2,481,404 Retail - Anchored
330 120 115 360 355 11/12/97 12/1/07 2,677,995 Industrial
331 180 177 360 357 1/22/98 2/1/13 2,342,021 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
332 233 231 233 231 2/20/98 8/1/17 - CTL
333 236 236 266 266 4/2/98 1/1/18 617,795 CTL
334 120 119 360 359 3/5/98 4/1/08 2,633,457 Multifamily
335 120 119 360 359 3/26/98 4/1/08 2,627,301 Industrial
336 120 119 360 359 3/6/98 4/1/08 2,610,524 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
337 120 119 300 299 3/5/98 4/1/08 2,437,968 Retail - Unanchored
338 120 115 360 355 11/14/97 12/1/07 2,647,008 Retail - Unanchored
339 120 115 360 355 11/24/97 12/1/07 2,586,947 Multifamily
340 235 235 235 235 4/9/98 12/1/17 - CTL
341 120 118 360 358 2/18/98 3/1/08 2,576,213 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
342 120 115 300 295 12/1/97 12/1/07 2,439,308 Health Care - Skilled Nursing
343 120 116 360 356 12/31/97 1/1/08 2,595,815 Office
344 180 170 360 350 6/18/97 7/1/12 2,458,852 Retail - Unanchored
345 238 238 238 238 4/2/98 3/1/18 - CTL
346 180 175 360 355 11/26/97 12/1/12 2,257,840 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
347 120 116 360 356 12/31/97 1/1/08 2,551,623 Retail - Anchored
348 300 299 300 299 3/20/98 4/1/23 - Multifamily - Section 42
349 204 203 204 203 4/1/98 4/1/15 76,909 Retail - Unanchored
350 120 113 360 353 9/30/97 10/1/07 2,525,345 Multifamily
351 300 296 360 356 12/31/97 1/1/23 1,354,981 Multifamily - Section 42
- -------------------------------------------------------------------------------------------------------------------------------
352 120 117 360 357 1/29/98 2/1/08 2,461,797 Retail - Unanchored
353 120 116 360 356 12/23/97 1/1/08 2,467,827 Retail - Unanchored
354 240 236 240 236 12/23/97 1/1/18 95,731 Retail - Unanchored
355 120 118 360 358 1/30/98 3/1/08 2,397,287 Office
356 228 223 228 223 12/1/97 12/1/16 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
357 120 119 360 359 3/27/98 4/1/08 2,384,698 Retail - Unanchored
358 120 118 360 358 2/4/98 3/1/08 2,387,494 Office
359 120 114 360 354 10/30/97 11/1/07 2,377,072 Multifamily
360 180 178 180 178 2/9/98 3/1/13 57,053 Industrial
361 120 119 360 359 3/31/98 4/1/08 2,342,676 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
362 120 115 300 295 11/10/97 12/1/07 2,200,322 Multifamily
363 84 81 360 357 1/28/98 2/1/05 2,446,058 Multifamily
364 120 117 300 297 1/15/98 2/1/08 2,127,237 Self Storage
365 120 117 300 297 1/9/98 2/1/08 2,126,910 Office
366 120 118 360 358 2/24/98 3/1/08 2,269,905 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
367 120 118 360 358 1/27/98 3/1/08 2,263,498 Multifamily
368 120 117 360 357 1/15/98 2/1/08 2,271,840 Multifamily
369 120 116 300 296 12/31/97 1/1/08 2,114,174 Hotel - Limited Service
370 120 113 360 353 9/30/97 10/1/07 2,300,503 Multifamily
371 120 119 300 299 3/27/98 4/1/08 2,076,121 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
372 120 118 360 358 2/26/98 3/1/08 2,250,927 Office
373 120 116 360 356 12/3/97 1/1/08 2,264,320 Multifamily
374 120 117 300 297 1/29/98 2/1/08 2,070,026 Office
375 120 116 300 296 12/19/97 1/1/08 2,093,409 Health Care - Assisted Living
376 120 114 360 354 10/30/97 11/1/07 2,229,909 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
377 120 120 360 360 4/8/98 5/1/08 2,195,384 Retail - Unanchored
378 120 118 300 298 2/27/98 3/1/08 2,006,244 Retail - Anchored
379 84 80 360 356 12/16/97 1/1/05 2,302,679 Industrial
380 120 116 300 296 12/10/97 1/1/08 2,047,711 Self Storage
381 240 236 240 236 12/30/97 1/1/18 92,039 Hotel - Limited Service
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Annual
Control Debt Net Appraised
No. Prepayment Provisions Service ($) Cash Flow ($) DSCR (x) Value ($)
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
312 L(4),D(5.5),O(.5) $ 260,135 $ 338,425 1.30x $ 4,400,000
313 L(4),D(5.75),O(.25) 283,773 515,828 1.82 4,900,000
314 L(4),D(5.5),O(.5) 272,454 348,502 1.28 4,200,000
315 L(8),D(11.33) 299,991 311,240 NAP 3,500,000
316 L(4),D(5.75),O(.25) 255,048 327,693 1.28 4,125,000
- ------------------------------------------------------------------------------------------------------------------------------
317 L(4),D(5.83),O(.17) 266,481 345,794 1.30 4,200,000
318 L(4),D(6) 254,989 366,151 1.44 3,900,000
319 L(4),D(5.5),O(.5) 268,559 397,937 1.48 4,925,000
320 L(8),YM1%(11.83) Step Loan 282,150 NAP 3,140,000
321 L(4),YM1%(15.75),O(.25) 313,240 400,447 1.28 4,500,000
- ------------------------------------------------------------------------------------------------------------------------------
322 L(3),D(1.5),O(.5) 320,016 498,676 1.56 4,000,000
323 L(4),D(5.5),O(.5) 251,000 348,994 1.39 4,200,000
324 L(4),D(5.5),O(.5) 270,804 359,803 1.33 4,300,000
325 L(4),D(5.83),O(.17) 269,676 383,510 1.42 5,160,000
326 L(7),D(7.5),O(.5) 253,770 327,240 1.29 3,900,000
- ------------------------------------------------------------------------------------------------------------------------------
327 L(4),D(5.83),O(.17) 261,714 390,578 1.49 4,400,000
328 L(4),YM1%(5.5),O(.5) 240,705 310,170 1.29 3,850,000
329 L(4),D(5.83),O(.17) 268,803 347,785 1.29 4,100,000
330 L(4),D(5.83),O(.17) 251,228 410,884 1.64 4,100,000
331 L(2.33),D(12.17),O(.5) 246,882 320,003 1.30 3,800,000
- ------------------------------------------------------------------------------------------------------------------------------
332 L(6),D(13.417) Step Loan 295,830 NAP 3,200,000
333 L(6),D(13.67) 270,512 271,324 NAP 3,100,000
334 L(3),D(6.75),O(.25) 245,339 322,257 1.31 3,920,000
335 L(5),YM1%(4.75),O(.25) 243,146 321,775 1.32 4,200,000
336 L(4),D(5.83),O(.17) 237,289 335,676 1.41 4,400,000
- ------------------------------------------------------------------------------------------------------------------------------
337 L(4),D(5.83),O(.17) 266,224 400,105 1.50 4,500,000
338 L(4),D(5.83),O(.17) 250,658 448,583 1.79 5,000,000
339 L(4),D(5.50),O(.50) 244,608 317,589 1.30 4,000,000
340 L(6),D(13.58) 278,134 278,968 NAP 3,175,000
341 L(4),YM1%(5.75),O(.25) 234,172 329,302 1.41 3,700,000
- ------------------------------------------------------------------------------------------------------------------------------
342 L(4),D(5.75),O(.25) 274,149 396,350 1.45 4,300,000
343 L(4),D(5.83),O(.17) 244,041 425,689 1.74 4,000,000
344 L(10),YM1%(4),O(1) 285,091 368,861 1.29 4,200,000
345 L(6),D(13.834) 270,319 291,944 NAP 3,340,000
346 L(2),YM1%(6),4(1),3(1),2(1),1(1),O(3) 239,949 311,375 1.30 4,350,000
- ------------------------------------------------------------------------------------------------------------------------------
347 L(4),D(5.75),O(.25) 239,833 311,727 1.30 4,100,000
348 YM1%(20),O(5) 248,468 313,685 1.26 3,600,000
349 L(9),D(8) 297,099 372,952 1.26 4,000,000
350 L(4),D(5.83),O(.17) 242,065 291,787 1.21 4,000,000
351 L(2.33),D(12.67),O(10) 265,200 312,231 1.18 3,320,000
- ------------------------------------------------------------------------------------------------------------------------------
352 L(4),D(5.75),O(.25) 231,037 317,891 1.38 4,900,000
353 L(4),YM1%(5.5),O(.5) 233,098 300,787 1.29 3,710,000
354 L(4),YM1%(15.75),O(.25) or D(Borr) 265,566 361,518 1.36 3,950,000
355 L(4),D(5.5),O(.5) 218,885 283,028 1.29 3,500,000
356 L(8),YM1(10),O(1) 271,525 297,320 NAP 3,525,000
- ------------------------------------------------------------------------------------------------------------------------------
357 L(4),D(5.75),O(.25) 226,102 315,330 1.39 3,610,000
358 L(4),D(5.75),O(.25) 226,989 287,628 1.27 3,600,000
359 L(4),D(5.83),O(.17) 223,779 312,362 1.40 3,600,000
360 L(6),D(8.75),O(.25) 299,202 401,957 1.34 4,500,000
361 L(4),D(5.75),O(.25) 216,806 299,431 1.38 3,450,000
- ------------------------------------------------------------------------------------------------------------------------------
362 L(4),YM1%(5.5),O(.5) 247,290 312,711 1.26 3,400,000
363 L(3),D(3.5),O(.5) 211,508 325,704 1.54 3,800,000
364 L(4),D(5.75),O(.25) 227,400 314,606 1.38 3,575,000
365 L(4),YM1%(5.75),O(.25) 227,298 296,265 1.30 3,838,000
366 L(5),D(4.83),O(.17) 208,119 295,713 1.42 3,275,000
- ------------------------------------------------------------------------------------------------------------------------------
367 L(4),D(5.75),O(.25) 205,901 268,543 1.30 3,261,000
368 L(5),D(4.75),O(.25) 209,464 275,551 1.32 3,300,000
369 L(4),D(5.75),O(.25) 231,581 816,831 3.53 6,500,000
370 L(4),D(5.83),O(.17) 219,588 281,301 1.28 3,290,000
371 L(4),D(5.75),O(.25) 227,526 297,816 1.31 3,410,000
- ------------------------------------------------------------------------------------------------------------------------------
372 L(4),D(5.83),O(.17) 212,934 271,053 1.27 3,800,000
373 L(4),YM1%(5.75),O(.25) 218,588 286,047 1.31 3,290,000
374 L(4),YM1%(5.75),O(.25) or D(Borr) 226,131 294,092 1.30 3,700,000
375 L(4),D(5.75),O(.25) 233,648 319,873 1.37 3,400,000
376 L(4),D(5.83),O(.17) 205,910 296,358 1.44 3,400,000
- ------------------------------------------------------------------------------------------------------------------------------
377 L(2),D(8) 204,653 256,127 1.25 3,450,000
378 L(4),D(5.75),O(.25) 213,759 279,836 1.31 3,800,000
379 L(4),D(2.75),O(.25) 200,599 250,872 1.25 4,000,000
380 L(4),D(5.83),O(.17) 227,525 332,764 1.46 3,930,000
381 L(5),D(14.75),O(.25) 241,678 343,192 1.42 3,950,000
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten
Hospitality Sq. Ft., Loan per
Cut-off Scheduled Average Units Sq. Ft., Units
Control Appraisal Date Maturity Date Daily Year Year Bed, Pad Bed, Pad Occupancy
No. Year LTV (%) LTV (%) Rate ($) Built Renovated or Room or Room ($) Percentage (%)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
312 1997 72.5% 63.7% 1984 N/A 52,877 Sq. Ft. $ 60.52 93.7%
313 1997 65.1 53.0 1985 N/A 766 Units 4,177.55 97.4
314 1997 75.8 67.6 1983 1992 34,500 Sq. Ft. 92.75 100.0
315 1998 NAP 0.0 1997 N/A 44,984 Sq. Ft. 70.56 100.0
316 1998 76.3 66.9 1989 N/A 28 Units 112,500.00 96.4
- --------------------------------------------------------------------------------------------------------------------------------
317 1998 74.9 66.4 1960 1985 24,344 Sq. Ft. 129.40 100.0
318 1997 80.6 70.7 1996 N/A 96 Units 32,854.17 100.0
319 1997 63.6 51.2 1989 N/A 41,703 Sq. Ft. 75.45 100.0
320 1997 NAP 0.0 1997 N/A 18,560 Sq. Ft. 169.05 100.0
321 1997 69.3 2.9 1994 N/A 46,000 Sq. Ft. 68.48 100.0
- --------------------------------------------------------------------------------------------------------------------------------
322 1997 77.8 69.8 1965 N/A 168 Units 18,809.52 87.0
323 1997 73.8 64.6 1987 N/A 36,676 Sq. Ft. 84.52 92.6
324 1997 71.9 58.3 1936,74 1990's 189,090 Sq. Ft. 16.39 87.1
325 1997 60.0 48.5 1962 1995 139,508 Sq. Ft. 22.22 100.0
326 1997 79.2 61.5 1993 N/A 54,817 Sq. Ft. 56.55 100.0
- --------------------------------------------------------------------------------------------------------------------------------
327 1997 70.2 62.3 1977 N/A 63,867 Sq. Ft. 48.54 100.0
328 1997 79.8 69.4 1987 N/A 52 Units 59,230.77 100.0
329 1997 74.6 60.5 1996 N/A 26,000 Sq. Ft. 118.08 100.0
330 1997 74.0 65.3 1974 N/A 44,800 Sq. Ft. 67.97 100.0
331 1997 79.8 61.6 1962 1994-97 104 Units 29,230.77 93.3
- --------------------------------------------------------------------------------------------------------------------------------
332 1998 NAP 0.0 1995 N/A 29,945 Sq. Ft. 101.27 100.0
333 1998 NAP 19.9 1998 N/A 11,060 Sq. Ft. 272.20 100.0
334 1998 76.5 67.2 1981 N/A 132 Units 22,727.27 97.0
335 1998 71.4 62.6 1983 1992,93,98 60,000 Sq. Ft. 50.00 100.0
336 1998 68.1 59.3 1987 N/A 72 Units 41,666.67 100.0
- --------------------------------------------------------------------------------------------------------------------------------
337 1998 66.6 54.2 1981 N/A 23,158 Sq. Ft. 129.54 100.0
338 1997 59.8 52.9 1987 N/A 38,142 Sq. Ft. 78.65 100.0
339 1997 74.7 64.7 1987 N/A 196 Units 15,306.12 78.6
340 1998 NAP 0.0 1997 N/A 13,905 Sq. Ft. 212.91 100.0
341 1997 79.9 69.6 1973 N/A 184 Units 16,086.96 97.3
- --------------------------------------------------------------------------------------------------------------------------------
342 1997 68.5 56.7 1973 N/A 109 Beds 27,155.96 94.0
343 1997 73.5 64.9 1905 1987 77,873 Sq. Ft. 37.88 97.5
344 1997 69.9 58.5 1949 1995 23,067 Sq. Ft. 127.89 100.0
345 1998 NAP 0.0 1998 N/A 13,905 Sq. Ft. 210.17 100.0
346 1997 66.6 51.9 1972 N/A 146 Units 19,917.81 89.7
- --------------------------------------------------------------------------------------------------------------------------------
347 1997 70.5 62.2 1974,1980 1986 98,184 Sq. Ft. 29.54 95.1
348 1998 79.9 0.0 1925 1997 59 Units 48,813.56 96.6
349 1998 71.1 1.9 1985 N/A 65,542 Sq. Ft. 43.48 100.0
350 1997 70.9 63.1 1987 1994 25 Units 114,000.00 100.0
351 1997 84.8 40.8 1997 N/A 92 Units 30,673.91 100.0
- --------------------------------------------------------------------------------------------------------------------------------
352 1997 57.0 50.2 1972 N/A 75,571 Sq. Ft. 37.05 100.0
353 1997 75.2 66.5 1978 1995-96 29,970 Sq. Ft. 93.43 100.0
354 1997 70.4 2.4 1988 N/A 45,266 Sq. Ft. 61.86 93.4
355 1997 78.5 68.5 1985 N/A 30,269 Sq. Ft. 90.85 92.0
356 1997 NAP 0.0 1996 N/A 15,525 Sq. Ft. 176.86 100.0
- --------------------------------------------------------------------------------------------------------------------------------
357 1998 74.7 66.1 1997 N/A 23,026 Sq. Ft. 117.26 93.3
358 1997 74.9 66.3 1997 N/A 31,680 Sq. Ft. 85.23 100.0
359 1997 74.7 66.0 1963 N/A 64 Units 42,187.50 100.0
360 1997 59.7 1.3 1977 1990 242,300 Sq. Ft. 11.14 100.0
361 1998 77.5 67.9 1998 N/A 25,200 Sq. Ft. 106.15 100.0
- --------------------------------------------------------------------------------------------------------------------------------
362 1997 78.1 64.7 1968 1987 76 Units 35,131.58 98.0
363 1997 69.8 64.4 1972 1993 168 Units 15,833.33 87.5
364 1997 73.8 59.5 1985 N/A 798 Units 3,320.80 81.7
365 1997 68.8 55.4 1985 N/A 32,975 Sq. Ft. 80.36 100.0
366 1997 79.3 69.3 1968 1997 88 Units 29,545.45 100.0
- --------------------------------------------------------------------------------------------------------------------------------
367 1997 79.6 69.4 1962 1989-1992 88 Units 29,545.45 97.0
368 1997 78.6 68.8 1985 1994-95 64 Units 40,625.00 96.9
369 1997 39.8 32.5 $135.56 1986 1993-96 45 Rooms 57,777.78 NAP
370 1997 78.7 69.9 1973 1996 120 Units 21,666.67 98.3
371 1997 74.7 60.9 1981,1985 N/A 47,615 Sq. Ft. 53.55 94.4
- --------------------------------------------------------------------------------------------------------------------------------
372 1998 67.0 59.2 1920 1995 33,404 Sq. Ft. 76.34 98.0
373 1997 77.3 68.8 1959,1963 1994 62 Units 41,129.03 96.0
374 1997 68.7 56.0 1983 N/A 30,555 Sq. Ft. 83.46 100.0
375 1997 74.7 61.6 1991 1993 43 Beds 59,302.33 91.0
376 1997 74.7 65.6 1980 N/A 58 Units 43,965.52 100.0
- --------------------------------------------------------------------------------------------------------------------------------
377 1998 72.5 63.6 1950 1984 34,311 Sq. Ft. 72.86 96.9
378 1997 65.6 52.8 1968 1996-97 140,496 Sq. Ft. 17.79 97.8
379 1997 62.3 57.6 1969 N/A 108,500 Sq. Ft. 23.04 100.0
380 1997 63.3 52.1 1989 1996 686 Units 3,644.31 75.0
381 1997 62.8 2.3 60.83 1996 N/A 86 Rooms 29,069.77 NAP
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Tenant
------------------------------------------------------------------------------
Tenant
Control Rent Roll Underwriting Area Leased Lease
No. Date Reserves ($) per Tenant Name (Sq. Ft.) Exp Date
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
312 11/30/97 $0.19 Sq. Ft. Devitt, Spellman, ET. AL. LLP 9,767 12/31/99
313 9/30/97 8.50 Unit
314 6/21/96 0.10 Sq. Ft. Kaiser Foundation Health Plan of Connecticut, Inc. 34,500 1/31/07
315 5/1/98 0.15 Sq. Ft. Winn-Dixie Charlotte, Inc. 44,984 7/16/17
316 3/1/98 207.14 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
317 11/24/97 0.48 Sq. Ft. Big 5 Sporting Goods 9,129 1/31/02
318 12/8/97 200.00 Unit
319 1/1/98 0.15 Sq. Ft. Salt Lake Endoscopy 5,583 12/31/00
320 5/1/98 - Sq. Ft. Pep Boys Manny, Moe & Jack, Inc. 18,560 11/30/17
321 0 0.10 Sq. Ft. Best Buy 46,000 8/1/16
- ------------------------------------------------------------------------------------------------------------------------------------
322 6/6/97 250.00 Unit
323 2/1/98 0.20 Sq. Ft. Walgreens 15,103 7/31/27
324 1/31/98 0.18 Sq. Ft. Sonic Corporation 56,383 11/30/02
325 12/8/97 0.28 Sq. Ft. Inter-Pack 48,000 1/14/01
326 12/9/97 - Sq. Ft. General Cinema 54,817 7/31/13
- ------------------------------------------------------------------------------------------------------------------------------------
327 7/1/97 0.24 Sq. Ft. Applied Microwave 5,280 3/31/99
328 11/1/97 288.75 Unit
329 5/1/98 0.20 Sq. Ft. Barnes & Noble 25,000 1/31/12
330 12/18/97 0.15 Sq. Ft. Mcghan Medical 44,800 6/1/99
331 8/1/97 225.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
332 5/1/98 0.12 Sq. Ft. Safeway Inc. 29,945 9/12/17
333 5/1/98 0.30 Sq. Ft. Rite Aid of Michigan, Inc. 11,060 2/18/18
334 1/16/98 218.18 Unit
335 1/1/98 0.15 Sq. Ft. Nexstar, Inc. 60,000 10/15/01
336 1/2/98 257.81 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
337 1/8/98 0.35 Sq. Ft. Sarovar Indian Resturant 4,615 12/31/02
338 10/6/97 0.18 Sq. Ft. Laurence Tashman 12,868 4/30/02
339 10/11/97 220.08 Unit
340 5/1/98 0.30 Sq. Ft. Walgreen Company 13,905 1/30/18
341 12/31/97 225.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
342 0 250.00 Bed
343 12/23/97 0.20 Sq. Ft. Baker Engineering 10,880 10/31/99
344 7/1/97 0.21 Sq. Ft. Half Price Book Store 11,351 3/30/09
345 5/1/98 0.15 Sq. Ft. Walgreen Company 13,905 3/31/58
346 11/1/97 297.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
347 12/1/97 0.20 Sq. Ft. K-Mart (Shadow) 94,841 NAV
348 3/19/98 210.00 Unit
349 4/1/98 0.31 Sq. Ft. Party Supermarket 9,995 6/1/02
350 8/11/97 382.00 Unit
351 12/17/97 175.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
352 10/1/97 0.15 Sq. Ft. A & P 24,341 3/31/06
353 11/5/97 0.16 Sq. Ft. Computer Expo 13,200 3/31/06
354 3/16/98 0.26 Sq. Ft. Office Products, Inc. 10,200 7/31/98
355 12/12/97 0.19 Sq. Ft. Plastic Surgery 7,347 9/30/06
356 5/1/98 0.20 Sq. Ft. Walgreen Company 15,525 12/31/16
- ------------------------------------------------------------------------------------------------------------------------------------
357 2/17/98 0.21 Sq. Ft. NWFC 14,442 NAV
358 8/1/97 0.32 Sq. Ft. Century Analysis Incorporated 31,680 7/31/17
359 7/1/97 200.00 Unit
360 0 0.13 Sq. Ft. Warehouse Specialists, Inc. 242,300 3/1/13
361 3/31/98 0.10 Sq. Ft. Brigham-Williams Realtors 5,600 5/31/03
- ------------------------------------------------------------------------------------------------------------------------------------
362 11/1/97 205.00 Unit
363 12/31/97 250.00 Unit
364 12/4/97 13.00 Unit
365 3/11/98 0.15 Sq. Ft. Cool 105..9 Radio 7,570 2/16/01
366 1/16/98 209.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
367 12/3/97 346.90 Unit
368 10/1/97 224.73 Unit
369 NAP 4% of Gross Revenue Room
370 9/12/97 216.73 Unit
371 4/16/98 0.21 Sq. Ft. Goodyear Chatfield Tire & Auto 5,084 3/31/01
- ------------------------------------------------------------------------------------------------------------------------------------
372 2/11/98 0.36 Sq. Ft. City Storage 9,072 8/31/00
373 6/1/97 295.00 Unit
374 11/25/97 0.11 Sq. Ft. American Independent Insurance 15,434 8/31/02
375 10/6/97 225.00 Bed
376 9/1/97 387.36 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
377 3/20/98 0.26 Sq. Ft. Azteca Mexican Restaurant 5,856 6/15/00
378 2/26/98 0.15 Sq. Ft. KMart 103,800 7/31/01
379 12/8/97 0.15 Sq. Ft. US Postal Service 59,444 12/31/99
380 6/30/97 14.58 Unit
381 NAP 4% of Gross Revenue Room
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2nd Largest Tenant 3rd Largest Tenant
--------------------------------------------------------- -------------------------------------------------------------
Tenant Tenant
Control Area Leased Lease Area Leased Lease Control
No. Tenant Name (Sq. Ft.) Exp Date Tenant Name (Sq. Ft.) Exp Date No.
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
312 Merril Lynch Pierce Fenn 7,608 11/1/00 Irving Weber Assocites I 6,604 10/31/02 312
313 313
314 314
315 315
316 316
- ------------------------------------------------------------------------------------------------------------------------------------
317 ERA Realty 3,267 11/30/99 Computer Ware 3,198 8/31/00 317
318 318
319 Salt Lake Regional Medical Center 4,656 11/30/99 Comprehensive Orthopedic Spec. 4,591 3/31/01 319
320 320
321 321
- ------------------------------------------------------------------------------------------------------------------------------------
322 322
323 Asian Palace 4,400 10/31/00 Sparkle Cleaners 3,420 11/30/03 323
324 Spalding, Alpern, Friot & Gum 13,655 1/31/00 Kirk & Chaney 10,162 5/31/98 324
325 Oriental Vase & Furniture 39,320 9/15/05 San Leonardo Disposal 30,000 4/30/02 325
326 326
- ------------------------------------------------------------------------------------------------------------------------------------
327 E.P.I.C. 3,212 5/31/98 US Flight 3,157 2/28/98 327
328 328
329 329
330 330
331 331
- ------------------------------------------------------------------------------------------------------------------------------------
332 332
333 333
334 334
335 335
336 336
- ------------------------------------------------------------------------------------------------------------------------------------
337 Manpower, Inc. 4,000 1/31/03 Digital Guru 3,558 4/14/99 337
338 Fitness For Life, Inc. 4,400 12/31/98 Jade Palace 4,400 6/30/00 338
339 339
340 340
341 341
- ------------------------------------------------------------------------------------------------------------------------------------
342 342
343 Tri-City Brokerage of IL. 10,597 3/31/06 Premier Print & Svcs. 6,250 5/31/98 343
344 Fu's Garden 5,124 12/31/00 Baci's Restaurant 4,500 4/30/99 344
345 345
346 346
- ------------------------------------------------------------------------------------------------------------------------------------
347 Stone & Thomas 23,002 7/31/08 SAV-A-LOT 21,580 12/31/98 347
348 348
349 Furniture Clearance 7,657 5/3/03 Women in Distress 6,623 6/1/99 349
350 350
351 351
- ------------------------------------------------------------------------------------------------------------------------------------
352 New York Carpet World 14,710 11/30/05 Arbor Drugs 13,382 7/31/05 352
353 Slick Willie's 7,140 9/2/06 Hasta La Pasta 5,480 9/6/06 353
354 Old Country Buffet 9,439 12/1/10 Progressive Casualty Insurance Co 3,611 5/31/02 354
355 Greenspring Health Svs. 4,917 12/31/01 MD Primary Care 4,672 11/30/06 355
356 356
- ------------------------------------------------------------------------------------------------------------------------------------
357 Einstein Brothers Bagels 2,400 NAV Malibu Dry Cleaners 2,083 NAV 357
358 358
359 359
360 360
361 Richard's BBQ and Grill, L.L.C. 4,200 1/18/03 Papa Joe's Acton Road, Inc. 2,800 3/14/03 361
- ------------------------------------------------------------------------------------------------------------------------------------
362 362
363 363
364 364
365 Merrill Lynch 5,061 9/30/98 First Union National Bank 4,596 10/31/00 365
366 366
- ------------------------------------------------------------------------------------------------------------------------------------
367 367
368 368
369 369
370 370
371 Forte Academy of Music 4,708 10/31/00 Columbine Gardens 4,116 12/31/01 371
- ------------------------------------------------------------------------------------------------------------------------------------
372 Roy 2,370 8/31/00 The Enchanted Forest 1,818 6/30/01 372
373 373
374 Britt, Hankins, Schiable 2,650 3/31/98 Green Tree Consumer Disc Co. 2,514 12/31/01 374
375 375
376 376
- ------------------------------------------------------------------------------------------------------------------------------------
377 State of Oregon 3,992 6/30/98 Encore Broadcasting Corp 2,688 3/2/00 377
378 EZ Pawn 8,741 5/31/01 Sherwin Williams Paint 7,313 5/31/03 378
379 Alside 30,019 12/31/00 Cheap Auto Glass 10,000 8/30/98 379
380 380
381 381
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
Control
No. Property Name Address
==========================================================================================================================
<S> <C> <C>
382 Holiday Inn Express - Albany, GA 911 East Oglethorpe Blvd.
383 Hillside Apartments 501 Eric Avenue
384 Walgreen Store (Wolfcreek) SEC of Germantown Parkway & U.S. Highway 64
385 Southgate Village Life Care Center 4101 SW Martin Drive
386 Walgreen Houston 10850 Scarsdale Boulevard
- --------------------------------------------------------------------------------------------------------------------------
387 Kushner Seiden Madison 64th LP 26 East 64th Street
388 Miramar/Chapparone Auto Center 6590-6598 Miramar Road
389 Stor-It Rental Storage 1435 Malad Street
390 Jefferson Centre 105 East Jefferson Boulevard
391 Best Western - Dunn 603 Spring Branch Road
- --------------------------------------------------------------------------------------------------------------------------
392 Ocean Villa Townhomes #2 4400-4600 Dallas Drive
393 Central Park Professional Center 1450 Madruga Avenue
394 Safeguard Self Storage 1007-09 Edgewood Road
395 Tuscany Village Phase I 235 Ocala
396 Concord Village West 137-A West Concord Drive
- --------------------------------------------------------------------------------------------------------------------------
397 Peoria Town Center 8110-8140 Peoria Avenue
398 Days Inn - Forest Park 5116 Highway 85
399 Tech Center 300 Kimberton Road
400 Amerihost Inn - Parkersburg 401 37th Street
401 Comfort Inn - Gaffney, SC 143 Corona Drive
- --------------------------------------------------------------------------------------------------------------------------
402 Food Pavilion 1000 West 4th Avenue
403 Eckerd Drug Store (Lexington) NWC of Columbia Avenue and Old Chapin Road
404 Keep It Self Storage - Santa Clarita 25333 San Fernando Road
405 Country Creek 398 Bethel Avenue
406 1803 Park Center Drive 1803 Park Center Drive
- --------------------------------------------------------------------------------------------------------------------------
407 Willow Trace Apartments 8100 Pines Road
408 Walgreen Coral Springs 5480 University Drive
409 Fox Crossing 6410 Walther Avenue
410 Emmorton Village Shopping Center 3101-05 Emmorton Road (Rt. 24)
411 Slauson Plaza 9402-9448 Slauson Avenue
- --------------------------------------------------------------------------------------------------------------------------
412 Walgreen Chicago 1546 North Central Ave.
413 Warehouse Specialists - Specialists Ave # 1-4 720 - 772 Specialists Avenue
414 Wanamassa Gardens Apartments 1515 Allen Avenue
415 Inn of Payson 801 North Beeline Highway
416 River Oaks Apartments 3001 Medical Arts Street
- --------------------------------------------------------------------------------------------------------------------------
417 Val Halla 1224 Lake Avenue
418 Timm Office Building 136 West Canon Perdido Street
419 Twin Fountains Apartments 2135 South Depew Street
420 Hillcroft Plaza Shopping Center 6401 Hillcroft
421 Plantation House 2625 Hudnell Street
- --------------------------------------------------------------------------------------------------------------------------
422 Olde Towne Shopping Center 210-800 Olde Towne Road
423 5 Walk-Up Residential Buildings (Formerly 70 East) 70 East 3rd, 157,162 Stanton, 166,178 Norfolk
424 Comfort Inn - Franklin 4206 Franklin Commons Court
425 Days Inn (Winter Park) 901 North Orlando Avenue
426 Office Depot Aurora SEC East Mississippi Avenue & South Potomac Street
- --------------------------------------------------------------------------------------------------------------------------
427 Tara Woods Apartments 661 Sherwood Drive
428 Sneaker Stadium Hurfville Road (Route 41)
429 Andora Apartments 3305 Linda Drive
430 1212-1216 Broadway 1212-1216 Broadway
431 3610 Birch Street (Apollo Office Building) 3610 Birch Street
- --------------------------------------------------------------------------------------------------------------------------
432 Walgreens Pharmacy (Miami) 15900 Northwest 27th Avenue
433 Eckerd Ventnor 6701 Ventnor Avenue
434 Capitol Warehouse Building 4355 Duraform Lane
435 North Oaks Manor Apartments 600-616 North Oaks Drive
436 6100 Capital Center 6100 South Fashion Blvd
- --------------------------------------------------------------------------------------------------------------------------
437 Rite Aid Virginia Beach 324 Virginia Beach Blvd
438 Rite Aid Roanoke 1168 Peters Creek Road
439 The Business Centre at Riverside 1362 Brass Mill Road
440 The Manors Apartments 985 Manor Drive
441 FAA Building 8808 Beck Road
- --------------------------------------------------------------------------------------------------------------------------
442 Eckerd Houma 7015 West Park Avenue
443 Antelope Valley Mall 1201 W Avenue P
444 Chateau Imperial 3000-3320 Parklane Drive
445 Glenoaks Apartments 1019 East Glenoaks Blvd
446 Lucky/Sav-On Center 2006 Avenue K
- --------------------------------------------------------------------------------------------------------------------------
447 Eckerd Winslow S.W. Willaimstown - New Freedom Road
448 Walgreens - Richmond 11119 Hull Street Road
449 Stoughton Plaza 397-423 Washington Street
450 PetsMart Inc. 2677 East Main Street
451 Cobblestone Village Shopping Center 2001-2099 East Orangethorpe Avenue
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial
No. City State Code Groups Balance ($) Balance ($) Balance Pool Balance
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
382 Albany GA 31705 $ 2,500,000 $ 2,479,063.65 0.07% 85.96%
383 Bowling Green KY 42101 2,475,000 2,472,995.16 0.07 86.03
384 Memphis TN 38133 Group A 2,500,000 2,467,814.73 0.07 86.10
385 Topeka KS 66612 2,475,000 2,464,054.16 0.07 86.17
386 Houston TX 77089 2,478,496 2,459,764.86 0.07 86.24
- ------------------------------------------------------------------------------------------------------------------------------------
387 New York NY 10021 2,460,000 2,453,681.46 0.07 86.31
388 San Diego CA 92121 2,450,000 2,448,027.16 0.07 86.38
389 Boise ID 83705 2,460,000 2,447,179.29 0.07 86.45
390 South Bend IN 46601 2,450,000 2,446,687.19 0.07 86.52
391 Dunn NC 28334 2,450,000 2,416,635.89 0.07 86.59
- ------------------------------------------------------------------------------------------------------------------------------------
392 Oxnard CA 93033 2,400,000 2,396,690.52 0.07 86.66
393 Coral Gables FL 33146 2,400,000 2,396,615.50 0.07 86.73
394 Edgewood MD 21040 2,400,000 2,394,644.70 0.07 86.80
395 Tallahassee FL 32304 2,400,000 2,392,627.30 0.07 86.87
396 Clarksvile TN 37042 2,400,000 2,391,173.89 0.07 86.93
- ------------------------------------------------------------------------------------------------------------------------------------
397 Peoria AZ 85354 2,400,000 2,388,976.76 0.07 87.00
398 Forest Park GA 30050 2,400,000 2,382,514.19 0.07 87.07
399 Phoenixville PA 19460 2,400,000 2,382,499.53 0.07 87.14
400 Parkersburg WV 26101 2,400,000 2,378,907.69 0.07 87.21
401 Gaffney SC 29341 2,380,000 2,360,068.62 0.07 87.28
- ------------------------------------------------------------------------------------------------------------------------------------
402 Kennewick WA 99336 2,345,000 2,343,111.70 0.07 87.34
403 Lexington SC 29072 2,348,385 2,340,959.27 0.07 87.41
404 Santa Clarita CA 91350 2,350,000 2,339,388.61 0.07 87.48
405 Sanger CA 93757 2,334,000 2,326,171.64 0.07 87.55
406 Orlando FL 32835 2,325,000 2,322,167.35 0.07 87.61
- ------------------------------------------------------------------------------------------------------------------------------------
407 Shreveport LA 71129 2,322,000 2,322,000.00 0.07 87.68
408 Coral Springs FL 33076 2,338,792 2,320,085.38 0.07 87.75
409 Baltimore MD 21206 2,325,000 2,319,272.57 0.07 87.81
410 Abingdon MD 21009 2,300,000 2,291,829.34 0.07 87.88
411 Pico Rivera CA 90660 2,287,500 2,280,921.21 0.07 87.94
- ------------------------------------------------------------------------------------------------------------------------------------
412 Chicago IL 60639 2,275,000 2,261,719.41 0.07 88.01
413 Menasha WI 54956 2,275,000 2,261,613.00 0.07 88.08
414 Wannamassa NJ 07712 2,260,000 2,254,135.36 0.06 88.14
415 Payson AZ 85541 Group E 2,250,000 2,247,472.01 0.06 88.20
416 Austin TX 78705 2,250,000 2,246,834.81 0.06 88.27
- ------------------------------------------------------------------------------------------------------------------------------------
417 Metairie LA 70002 2,224,000 2,222,177.00 0.06 88.33
418 Santa Barbara CA 93101 2,225,000 2,222,028.77 0.06 88.40
419 Denver CO 80227 2,225,000 2,216,216.51 0.06 88.46
420 Houston TX 77081 2,210,000 2,205,232.78 0.06 88.52
421 Dallas TX 75235 2,200,000 2,200,000.00 0.06 88.59
- ------------------------------------------------------------------------------------------------------------------------------------
422 Vestiva Hills AL 35216 2,200,000 2,197,192.71 0.06 88.65
423 New York NY 10002 2,200,000 2,197,106.08 0.06 88.71
424 Franklin TN 37064 2,200,000 2,196,876.93 0.06 88.78
425 Winter Park FL 32789 2,200,000 2,195,718.51 0.06 88.84
426 Aurora CO 80012 2,210,511 2,194,462.46 0.06 88.90
- ------------------------------------------------------------------------------------------------------------------------------------
427 Jonesboro GA 30236 2,200,000 2,194,360.59 0.06 88.97
428 Deptford NJ 08096 2,200,000 2,193,031.27 0.06 89.03
429 Dallas TX 75220 2,200,000 2,192,153.17 0.06 89.09
430 New York NY 10001 2,200,000 2,189,021.81 0.06 89.16
431 Newport Beach CA 92660 2,185,000 2,183,388.13 0.06 89.22
- ------------------------------------------------------------------------------------------------------------------------------------
432 Miami FL 33054 2,180,454 2,170,234.76 0.06 89.28
433 Ventnor City NJ 08408 2,174,396 2,167,394.14 0.06 89.34
434 Windsor WI 53598 2,175,000 2,156,227.94 0.06 89.41
435 Osseo MN 55369 2,160,000 2,154,267.86 0.06 89.47
436 Murray UT 84107 Group I 2,160,000 2,153,054.25 0.06 89.53
- ------------------------------------------------------------------------------------------------------------------------------------
437 Virginia Beach VA 23451 2,154,314 2,149,999.09 0.06 89.59
438 Roanoke VA 24017 2,150,000 2,145,860.84 0.06 89.65
439 Belcamp MD 21017 2,150,000 2,145,240.02 0.06 89.71
440 Palm Springs FL 33461 2,150,000 2,142,586.73 0.06 89.78
441 Van Buren Township MI 48111 2,152,500 2,141,611.88 0.06 89.84
- ------------------------------------------------------------------------------------------------------------------------------------
442 Houma LA 70364 2,134,290 2,126,984.61 0.06 89.90
443 Palmdale CA 93551 2,125,000 2,125,000.00 0.06 89.96
444 Hastings NE 68901 2,120,000 2,120,000.00 0.06 90.02
445 Glendale CA 91206 2,122,500 2,112,568.12 0.06 90.08
446 Lancaster CA 93536 2,115,000 2,106,979.91 0.06 90.14
- ------------------------------------------------------------------------------------------------------------------------------------
447 Winslow Township NJ 08095 2,113,064 2,106,916.60 0.06 90.20
448 Richmond VA 23112 2,137,294 2,100,455.05 0.06 90.26
449 Stoughton MA 02072 2,100,000 2,098,425.83 0.06 90.32
450 Plainfield IN 46168 2,100,000 2,098,410.02 0.06 90.38
451 Placentia CA 92670 2,100,000 2,098,381.24 0.06 90.45
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Interest Original Remaining
Control Mortgage Administrative Accrual Amortization Interest-Only Interest-Only
No. Rate (%) Cost Rate (%) Method Type Period (Mos.) Period (Mos.)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
382 8.0000% 0.0962% Actual/360 Fully Amortizing 0 0
383 7.0600 0.0962 Actual/360 Amortizing Balloon 0 0
384 7.5000 0.1562 Actual/360 Fully Amortizing 0 0
385 7.7500 0.1212 Actual/360 Amortizing Balloon 0 0
386 7.2700 0.0962 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
387 7.2300 0.0962 Actual/360 Fully Amortizing 0 0
388 7.0900 0.1462 Actual/360 Amortizing Balloon 0 0
389 7.8750 0.0962 Actual/360 Amortizing Balloon 0 0
390 7.2800 0.1462 Actual/360 Amortizing Balloon 0 0
391 8.6250 0.0962 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
392 7.2010 0.0962 Actual/360 Amortizing Balloon 0 0
393 7.1100 0.0962 Actual/360 Amortizing Balloon 0 0
394 7.5200 0.0962 30/360 Amortizing Balloon 0 0
395 7.3750 0.0962 Actual/360 Amortizing Balloon 0 0
396 7.3300 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
397 7.7500 0.0962 Actual/360 Amortizing Balloon 0 0
398 8.8750 0.0962 Actual/360 Amortizing Balloon 0 0
399 7.5000 0.0962 Actual/360 Amortizing Balloon 0 0
400 7.6250 0.0962 Actual/360 Fully Amortizing 0 0
401 8.0000 0.0962 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
402 7.0900 0.0962 Actual/360 Amortizing Balloon 0 0
403 7.5700 0.0962 30/360 Step Payments: Balloon(1) 0 0
404 7.6200 0.0962 Actual/360 Amortizing Balloon 0 0
405 7.7500 0.0962 Actual/360 Amortizing Balloon 0 0
406 7.6900 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
407 8.1400 0.0962 Actual/360 Interest-Only then Amortizing (ARD) 23 13
408 7.1250 0.0962 30/360 Fully Amortizing 0 0
409 7.0200 0.0962 30/360 Amortizing Balloon 0 0
410 7.3000 0.0962 30/360 Amortizing Balloon 0 0
411 7.7060 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
412 7.0000 0.0962 30/360 Fully Amortizing 0 0
413 7.4375 0.0962 Actual/360 Fully Amortizing 0 0
414 7.1700 0.0962 Actual/360 Amortizing (ARD) 0 0
415 7.5900 0.0962 Actual/360 Amortizing Balloon 0 0
416 7.1200 0.1462 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
417 7.0000 0.0962 Actual/360 Amortizing Balloon 0 0
418 7.3300 0.1462 Actual/360 Amortizing Balloon 0 0
419 7.0000 0.0962 Actual/360 Amortizing Balloon 0 0
420 7.3000 0.0962 Actual/360 Amortizing (ARD) 0 0
421 8.1400 0.0962 Actual/360 Interest-Only then Amortizing (ARD) 23 13
- -----------------------------------------------------------------------------------------------------------------------------------
422 7.5100 0.1562 Actual/360 Amortizing (ARD) 0 0
423 7.3900 0.0962 Actual/360 Amortizing (ARD) 0 0
424 7.8750 0.0962 Actual/360 Amortizing Balloon 0 0
425 7.8400 0.1462 Actual/360 Amortizing Balloon 0 0
426 7.6250 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
427 6.7800 0.0962 30/360 Amortizing Balloon 0 0
428 7.2200 0.0962 Actual/360 Amortizing (ARD) 0 0
429 7.1800 0.1462 Actual/360 Fully Amortizing 0 0
430 8.1250 0.1212 Actual/360 Amortizing Balloon 0 0
431 7.5300 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
432 7.4500 0.0962 30/360 Amortizing Balloon 0 0
433 7.3100 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
434 7.5010 0.0962 30/360 Fully Amortizing 0 0
435 7.0390 0.0962 Actual/360 Amortizing Balloon 0 0
436 7.9390 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
437 7.1700 0.0962 30/360 Fully Amortizing 0 0
438 7.1700 0.0962 30/360 Fully Amortizing 0 0
439 7.5600 0.0962 30/360 Amortizing Balloon 0 0
440 7.6250 0.0962 Actual/360 Amortizing Balloon 0 0
441 7.0600 0.1462 30/360 Step Payments: Fully Amortizing(3) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
442 7.0900 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
443 7.2100 0.0962 Actual/360 Amortizing Balloon 0 0
444 6.8750 0.0962 Actual/360 Amortizing Balloon 0 0
445 7.1130 0.0962 Actual/360 Amortizing Balloon 0 0
446 7.1880 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
447 7.6900 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
448 7.7700 0.0962 30/360 Fully Amortizing 0 0
449 7.4500 0.1462 Actual/360 Amortizing Balloon 0 0
450 7.4000 0.1462 Actual/360 Amortizing Balloon 0 0
451 7.3100 0.1462 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Original Remaining
Term to Term to Original Remaining
Control Maturity Maturity Amortization Amortization Origination Maturity Balloon
No. (Mos.) (Mos.) Term (Mos.) Term (Mos.) Date or ARD Balance ($) Property Type
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
382 240 235 240 235 11/26/97 12/1/17 $ 107,927 Hotel - Limited Service
383 120 119 360 359 3/18/98 4/1/08 2,162,406 Multifamily
384 237 230 237 230 9/25/97 7/1/17 - Retail - Anchored
385 120 116 300 296 12/29/97 1/1/08 2,024,450 Health Care - Skilled Nursing
386 239 235 239 235 12/15/97 12/1/17 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
387 360 357 360 357 1/16/98 2/1/28 223,446 Mixed Use
388 120 119 360 359 3/17/98 4/1/08 2,142,257 Retail - Unanchored
389 180 175 300 295 11/14/97 12/1/12 1,628,468 Self Storage
390 120 118 360 358 2/12/98 3/1/08 2,153,213 Office
391 180 175 180 175 11/21/97 12/1/12 66,605 Hotel - Limited Service
- -------------------------------------------------------------------------------------------------------------------------------
392 120 118 360 358 2/26/98 3/1/08 2,104,954 Multifamily
393 120 118 360 358 2/13/98 3/1/08 2,099,949 Office
394 120 117 360 357 1/12/98 2/1/08 2,083,997 Mixed Use
395 120 116 360 356 12/19/97 1/1/08 2,112,871 Multifamily
396 180 175 360 355 11/26/97 12/1/12 1,863,416 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
397 120 113 360 353 9/22/97 10/1/07 2,133,162 Retail - Anchored
398 120 114 264 258 10/22/97 11/1/07 1,876,126 Hotel - Limited Service
399 120 116 240 236 12/18/97 1/1/08 1,662,473 Industrial
400 240 235 240 235 11/7/97 12/1/17 92,977 Hotel - Limited Service
401 240 235 240 235 11/26/97 12/1/17 102,748 Hotel - Limited Service
- -------------------------------------------------------------------------------------------------------------------------------
402 120 119 360 359 3/9/98 4/1/08 2,050,445 Retail - Anchored
403 235 232 283 280 12/16/97 9/1/17 733,651 CTL
404 240 236 300 296 12/29/97 1/1/18 975,171 Self Storage
405 180 175 360 355 11/24/97 12/1/12 1,845,732 Multifamily
406 120 118 360 358 2/18/98 3/1/08 2,064,638 Office
- -------------------------------------------------------------------------------------------------------------------------------
407 120 110 360 360 6/16/97 7/1/07 2,145,715 Multifamily
408 234 230 234 230 12/22/97 7/1/17 - CTL
409 120 117 360 357 1/14/98 2/1/08 1,996,076 Multifamily
410 120 117 300 297 1/12/98 2/1/08 1,823,634 Retail - Unanchored
411 120 116 360 356 12/29/97 1/1/08 2,030,532 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
412 239 236 239 236 1/9/98 1/1/18 - CTL
413 180 178 180 178 2/9/98 3/1/13 48,075 Industrial
414 180 177 360 357 1/22/98 2/1/13 1,741,109 Multifamily
415 240 239 300 299 3/18/98 4/1/18 933,871 Hotel - Limited Service
416 120 118 360 358 2/9/98 3/1/08 1,969,220 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
417 120 119 360 359 3/12/98 4/1/08 1,940,024 Multifamily
418 120 118 360 358 2/19/98 3/1/08 1,957,988 Office
419 84 79 360 355 11/3/97 12/5/04 2,047,806 Multifamily
420 120 118 300 298 2/25/98 3/1/08 1,785,024 Retail - Unanchored
421 120 110 360 360 6/16/97 7/1/07 2,032,977 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
422 120 118 360 358 2/10/98 3/1/08 1,944,875 Retail - Unanchored
423 120 118 360 358 2/17/98 3/1/08 1,938,965 Multifamily
424 180 179 264 263 3/12/98 4/1/13 1,193,735 Hotel - Limited Service
425 120 118 300 298 2/13/98 3/1/08 1,805,873 Hotel - Limited Service
426 176 173 176 173 1/12/98 10/1/12 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
427 120 118 300 298 2/19/98 3/1/08 1,719,176 Multifamily
428 120 116 360 356 12/9/97 1/1/08 1,929,125 Retail - Unanchored
429 240 238 240 238 2/20/98 3/1/18 77,120 Multifamily
430 120 115 300 295 11/21/97 12/1/07 1,819,497 Mixed Use
431 120 119 360 359 3/6/98 4/1/08 1,932,269 Office
- -------------------------------------------------------------------------------------------------------------------------------
432 233 230 260 257 1/28/98 7/1/17 419,467 CTL
433 236 233 236 233 1/9/98 10/1/17 - CTL
434 144 142 144 142 2/27/98 3/1/10 - Industrial
435 120 117 360 357 1/29/98 2/1/08 1,884,854 Multifamily
436 120 115 360 355 11/25/97 12/1/07 1,928,565 Office
- -------------------------------------------------------------------------------------------------------------------------------
437 232 231 232 231 3/13/98 8/1/17 - CTL
438 237 236 237 236 3/3/98 1/1/18 - CTL
439 120 117 360 357 1/14/98 2/1/08 1,868,550 Industrial
440 120 115 360 355 11/4/97 12/1/07 1,905,004 Multifamily
441 160 159 160 159 3/11/98 8/1/11 - Office
- -------------------------------------------------------------------------------------------------------------------------------
442 236 233 236 233 1/9/98 10/1/17 - CTL
443 120 120 240 240 4/3/98 5/1/08 1,458,149 Retail - Anchored
444 120 120 360 360 4/3/98 5/1/08 1,843,340 Multifamily
445 120 114 360 354 10/30/97 11/1/07 1,856,071 Multifamily
446 120 115 360 355 11/5/97 12/1/07 1,853,343 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
447 237 234 237 234 1/29/98 11/1/17 - CTL
448 233 223 233 223 6/28/97 12/1/16 - CTL
449 120 119 360 359 3/18/98 4/1/08 1,853,360 Retail - Anchored
450 120 119 360 359 3/31/98 4/1/08 1,851,007 Retail - Anchored
451 120 119 360 359 3/25/98 4/1/08 1,846,753 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Annual
Control Debt Net Appraised
No. Prepayment Provisions Service ($) Cash Flow ($) DSCR (x) Value ($)
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
382 L(2.42),D(17.08),O(.5) $ 250,932 $ 378,175 1.51x $ 3,750,000
383 L(4),D(5.75),O(.25) 198,793 263,445 1.33 3,100,000
384 L(10),D(9.25),O(.5) 243,453 288,529 1.19 2,970,000
385 L(4),D(5.75),O(.25) 224,333 360,397 1.61 3,300,000
386 L(10),YM1%(9.9167) 235,872 242,948 NAP 2,825,000
- ------------------------------------------------------------------------------------------------------------------------------
387 L(4),D(25.75),O(.25) 200,978 290,759 1.45 3,300,000
388 L(4),YM1%(5.5),O(.5) 197,379 286,136 1.45 3,300,000
389 L(4),YM1%(10.75),O(.25) or D(Borr) 225,401 307,465 1.36 3,300,000
390 L(4),D(5.5),O(.5) 201,158 316,781 1.57 3,300,000
391 L(5),D(9.75),O(.25) 291,672 547,540 1.88 3,500,000
- ------------------------------------------------------------------------------------------------------------------------------
392 L(4),D(5.83),O(.17) 195,510 277,681 1.42 2,990,000
393 L(4),D(5.75),O(.25) 193,739 243,972 1.26 3,500,000
394 L(4),YM1%(4),O(2) 201,768 275,138 1.36 3,350,000
395 L(4),D(5.75),O(.25) 198,914 280,182 1.41 3,100,000
396 L(2),YM1%(6),4(1),3(1),2(1),1(1),O(3) 198,032 279,861 1.41 3,550,000
- ------------------------------------------------------------------------------------------------------------------------------
397 L(4),D(5.83),O(.17) 206,327 317,930 1.54 3,200,000
398 L(4),YM1%(5.75),O(.25) or D(Borr) 248,525 351,023 1.41 3,800,000
399 L(4),D(5.75),O(.25) 232,011 305,530 1.32 3,400,000
400 L(5),D(14.75),O(.25) 234,217 332,581 1.42 4,200,000
401 L(5),5(2),4(2),3(2),2(2),1(2),O(5) or D(Borr) 238,887 338,009 1.41 3,400,000
- ------------------------------------------------------------------------------------------------------------------------------
402 L(4),YM1%(5.75),O(.25) or D(Borr) 188,920 268,087 1.42 3,125,000
403 L(10),D(9.58) Step Loan 221,361 NAP 2,400,000
404 L(4),D(15.75),O(.25) 210,602 283,620 1.35 3,150,000
405 L(4),YM1%(10.75),O(.25) 200,653 250,121 1.25 3,410,000
406 D(9.5),O(.5) 198,723 274,262 1.38 3,100,000
- ------------------------------------------------------------------------------------------------------------------------------
407 L(2),YM1%(3),5(1),4(1),3(1),2(1),1(.5),O(.5) 207,182 (2) 263,762 1.27 3,650,000
408 L(8),D(11.5) 222,261 233,375 NAP 2,775,000
409 L(4),YM1%(4),O(2) 185,994 248,014 1.33 3,100,000
410 L(4),YM1%(4),O(2) 200,385 262,649 1.31 3,200,000
411 L(4),D(5.83),O(.17) 195,821 291,672 1.49 3,050,000
- ------------------------------------------------------------------------------------------------------------------------------
412 L(8),D(11.92) 212,064 332,797 NAP 3,850,000
413 L(6),D(8.75),O(.25) 252,106 562,854 2.23 5,850,000
414 L(2.33),D(12.17),O(.5) 183,537 220,802 1.20 2,900,000
415 L(4),D(16) 201,111 282,531 1.40 4,650,000
416 L(4),D(5.75),O(.25) 181,813 259,759 1.43 3,050,000
- ------------------------------------------------------------------------------------------------------------------------------
417 L(2),D(7.50),O(.50) 177,556 255,934 1.44 2,780,000
418 L(4),YM1%(5.5),O(.5) 183,592 241,434 1.32 3,000,000
419 L(3),D(3.83),O(.17) 177,636 294,403 1.66 3,310,000
420 L(4),D(5.75),O(.25) 192,544 284,574 1.48 3,100,000
421 L(2),YM1%(3),5(1),4(1),3(1),2(1),1(.5),O(.5) 196,297 (2) 337,453 1.72 2,750,000
- ------------------------------------------------------------------------------------------------------------------------------
422 L(5),D(4.5),O(.5) 184,773 255,217 1.38 3,000,000
423 L(4),D(5.5),O(.5) 182,608 373,611 2.05 4,545,000
424 L(5),D(9.75),O(.25) 210,727 347,012 1.65 3,400,000
425 L(4),D(5.75),O(.25) 200,969 309,454 1.54 3,100,000
426 L(8),D(6.67) Step Loan 243,956 NAP 2,550,000
- ------------------------------------------------------------------------------------------------------------------------------
427 L(7),D(2.5),O(.5) 182,901 289,444 1.58 3,050,000
428 L(4),D(5.5),O(.5) 179,558 232,628 1.30 2,975,000
429 L(7),D(12.75),O(.25) 207,541 251,329 1.21 3,150,000
430 L(5),YM1%(4.75),O(.25) 205,950 283,461 1.38 4,600,000
431 L(4),D(5.75),O(.25) 183,873 229,732 1.25 2,800,000
- ------------------------------------------------------------------------------------------------------------------------------
432 L(10),D(9.42) 203,068 205,095 NAP 2,300,000
433 L(8),YM1%(11.67) Step Loan 188,318 NAP 2,180,000
434 L(4),D(7.83),O(.17) 275,428 362,956 1.32 2,900,000
435 L(4),D(5.83),O(.17) 173,126 265,303 1.53 2,700,000
436 L(4),D(5.83),O(.17) 189,091 242,886 1.28 2,875,000
- ------------------------------------------------------------------------------------------------------------------------------
437 L(4),D(15.33) 206,243 229,936 NAP 2,275,000
438 L(4),D(15.75) 203,825 227,242 NAP 2,460,000
439 L(4),YM1%(4),O(2) 181,458 259,668 1.43 3,100,000
440 L(4),YM1%(5.75),O(.25) 182,611 245,416 1.34 2,825,000
441 L(4),D(8.83),O(.5) Step Loan 310,698 1.10 3,400,000
- ------------------------------------------------------------------------------------------------------------------------------
442 L(8),YM1(11.67) Step Loan 224,201 NAP 2,480,000
443 L(4),D(5.75),O(.25) 200,928 261,023 1.30 2,850,000
444 L(5),D(5) 167,123 232,311 1.39 2,650,000
445 L(4),D(5.83),O(.17) 171,390 253,757 1.48 2,830,000
446 L(4),D(5.83),O(.17) 172,070 270,178 1.57 3,740,000
- ------------------------------------------------------------------------------------------------------------------------------
447 L(8),YM1%(11.5),O(.25) Step Loan 187,488 NAP 2,170,000
448 L(10),D(8.92),O(.5) 213,928 220,346 NAP 2,450,000
449 L(4),YM1%(5.75),O(.25) 175,340 225,707 1.29 2,800,000
450 L(4),D(5.5),O(.5) 174,480 221,479 1.27 2,650,000
451 L(5),D(4.5),O(.5) 172,935 265,626 1.54 3,600,000
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten
Hospitality Sq. Ft., Loan per
Cut-off Scheduled Average Units Sq. Ft., Units
Control Appraisal Date Maturity Date Daily Year Year Bed, Pad Bed, Pad Occupancy
No. Year LTV (%) LTV (%) Rate ($) Built Renovated or Room or Room ($) Percentage (%)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
382 1997 66.1% 2.9% $45.25 1972 1983 151 Rooms $ 16,556.29 NAP
383 1997 79.8 69.8 1987 N/A 100 Units 24,750.00 97.0%
384 1997 83.1 0.0 1997 N/A 13,905 Sq. Ft. 179.79 100.0
385 1997 74.7 61.4 1974 1987 120 Beds 20,625.00 83.3
386 1997 NAP 0.0 1997 N/A 13,905 Sq. Ft. 178.24 100.0
- --------------------------------------------------------------------------------------------------------------------------------
387 1997 74.4 6.8 1882 1996 7,865 Sq. Ft. 312.78 100.0
388 1997 74.2 64.9 1990 N/A 21,408 Sq. Ft. 114.44 100.0
389 1997 74.2 49.4 1983;1986 N/A 868 Units 2,834.10 99.6
390 1997 74.1 65.3 1924-28 1970 98,011 Sq. Ft. 25.00 87.1
391 1997 69.1 1.9 34.00 1966 1996 144 Rooms 17,013.89 NAP
- --------------------------------------------------------------------------------------------------------------------------------
392 1998 80.2 70.4 1973 N/A 52 Units 46,153.85 100.0
393 1998 68.5 60.0 1972 N/A 31,334 Sq. Ft. 76.59 100.0
394 1997 71.5 62.2 1986 1989 53,752 Sq. Ft. 44.65 99.1
395 1997 77.2 68.2 1997 N/A 24 Units 100,000.00 100.0
396 1997 67.4 52.5 1983 N/A 119 Units 20,168.07 94.1
- --------------------------------------------------------------------------------------------------------------------------------
397 1997 74.7 66.7 1996 N/A 33,877 Sq. Ft. 70.84 100.0
398 1997 62.7 49.4 37.00 1976 1991 206 Rooms 11,650.49 NAP
399 1997 70.1 48.9 1946,93 1970 67,274 Sq. Ft. 35.68 100.0
400 1997 56.6 2.2 56.50 1995 N/A 79 Rooms 30,379.75 NAP
401 1997 69.4 3.0 42.00 1987 N/A 83 Rooms 28,674.70 NAP
- --------------------------------------------------------------------------------------------------------------------------------
402 1998 75.0 65.6 1980 1996 44,500 Sq. Ft. 52.70 100.0
403 1997 NAP 30.6 1997 N/A 10,908 Sq. Ft. 215.29 100.0
404 1997 74.3 31.0 1990 1998 581 Units 4,044.75 99.7
405 1997 68.2 54.1 1986 N/A 144 Units 16,208.33 98.0
406 1998 74.9 66.6 1996-97 N/A 19,687 Sq. Ft. 118.10 100.0
- --------------------------------------------------------------------------------------------------------------------------------
407 1997 63.6 58.8 1979 N/A 192 Units 12,093.75 82.2
408 1997 NAP 0.0 1997 N/A 15,930 Sq. Ft. 146.82 100.0
409 1997 74.8 64.4 1964 1997 117 Units 19,871.79 97.4
410 1997 71.6 57.0 1989 N/A 29,800 Sq. Ft. 77.18 100.0
411 1997 74.8 66.6 1982 N/A 30,169 Sq. Ft. 75.82 99.0
- --------------------------------------------------------------------------------------------------------------------------------
412 1997 NAP 0.0 1997 N/A 12,154 Sq. Ft. 187.18 100.0
413 1997 38.7 0.8 1981 N/A 285,000 Sq. Ft. 7.98 100.0
414 1997 77.7 60.0 1967 1994-97 66 Units 34,242.42 100.0
415 1998 48.3 20.1 53.50 1973 1997 99 Rooms 22,727.27 NAP
416 1998 73.7 64.6 1962 N/A 66 Units 34,090.91 100.0
- --------------------------------------------------------------------------------------------------------------------------------
417 1998 79.9 69.8 1970 N/A 79 Units 28,151.90 94.5
418 1997 74.1 65.3 1989 N/A 18,054 Sq. Ft. 123.24 100.0
419 1997 67.0 61.9 1973 N/A 96 Units 23,177.08 100.0
420 1998 71.1 57.6 1979 N/A 36,007 Sq. Ft. 61.38 93.9
421 1997 80.0 73.9 1961 N/A 125 Units 17,600.00 91.2
- --------------------------------------------------------------------------------------------------------------------------------
422 1997 73.2 64.8 1983 N/A 36,069 Sq. Ft. 60.99 91.0
423 1997 48.3 42.7 1910-1930 N/A 107 Units 20,560.75 99.0
424 1997 64.6 35.1 53.35 1995 N/A 59 Rooms 37,288.14 NAP
425 1997 70.8 58.3 36.12 1966 N/A 105 Rooms 20,952.38 NAP
426 1997 NAP 0.0 1997 N/A 30,936 Sq. Ft. 71.45 100.0
- --------------------------------------------------------------------------------------------------------------------------------
427 1997 72.0 56.4 1961,63 N/A 106 Units 20,754.72 94.3
428 1997 73.7 64.8 1997 N/A 17,000 Sq. Ft. 129.41 100.0
429 1997 69.6 2.5 1968 1997 150 Units 14,666.67 93.3
430 1997 47.6 39.6 1920 1970 26,334 Sq. Ft. 83.54 68.3
431 1997 78.0 69.0 1989 N/A 17,158 Sq. Ft. 127.35 100.0
- --------------------------------------------------------------------------------------------------------------------------------
432 1997 NAP 18.2 1997 N/A 13,905 Sq. Ft. 156.81 100.0
433 1997 NAP 0.0 1997 N/A 9,505 Sq. Ft. 228.76 100.0
434 1997 74.4 0.0 1995 1996 80,000 Sq. Ft. 27.19 100.0
435 1997 79.8 69.8 1971 N/A 81 Units 26,666.67 100.0
436 1997 74.9 67.1 1983 1995 31,140 Sq. Ft. 69.36 100.0
- --------------------------------------------------------------------------------------------------------------------------------
437 1998 NAP 0.0 1997 N/A 12,213 Sq. Ft. 176.40 100.0
438 1998 NAP 0.0 1998 N/A 11,288 Sq. Ft. 190.47 100.0
439 1997 69.2 60.3 1989 N/A 45,000 Sq. Ft. 47.78 100.0
440 1997 75.8 67.4 1968 N/A 93 Units 23,118.28 93.5
441 1997 63.0 0.0 1981-97 1997 35,031 Sq. Ft. 61.45 100.0
- --------------------------------------------------------------------------------------------------------------------------------
442 1997 NAP 0.0 1997 N/A 10,908 Sq. Ft. 195.66 100.0
443 1997 74.6 51.2 1996 N/A 15,000 Sq. Ft. 141.67 100.0
444 1998 80.0 69.6 1971 1994 66 Units 32,121.21 99.0
445 1997 74.7 65.6 1988 N/A 37 Units 57,364.86 100.0
446 1997 56.3 49.6 1992 N/A 25,217 Sq. Ft. 83.87 90.0
- --------------------------------------------------------------------------------------------------------------------------------
447 1997 NAP 0.0 1997 N/A 10,908 Sq. Ft. 193.72 100.0
448 1997 NAP 0.0 1996 N/A 13,905 Sq. Ft. 153.71 100.0
449 1997 74.9 66.2 1960,1965 N/A 20,812 Sq. Ft. 100.90 100.0
450 1997 79.2 69.9 1997 N/A 26,344 Sq. Ft. 79.71 100.0
451 1998 58.3 51.3 1979 N/A 40,191 Sq. Ft. 52.25 88.5
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Tenant
------------------------------------------------------------------------------
Tenant
Control Rent Roll Underwriting Area Leased Lease
No. Date Reserves ($) per Tenant Name (Sq. Ft.) Exp Date
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
382 NAP 4% of Gross Revenue Room
383 12/1/97 $233.00 Unit
384 5/1/98 0.25 Sq. Ft. Walgreens 13,905 4/13/57
385 10/31/97 225.00 Bed
386 5/1/98 0.15 Sq. Ft. Walgreen Company 13,905 9/30/57
- ------------------------------------------------------------------------------------------------------------------------------------
387 1/1/98 0.60 Sq. Ft. Kushner (1st Flr.) 1,725 9/1/02
388 12/1/97 0.15 Sq. Ft. Chapparone Auto 9,720 7/31/11
389 3/1/98 7.00 Unit
390 1/1/98 0.20 Sq. Ft. Holy Cross Care Services 12,935 10/14/02
391 NAP 4% of Gross Revenue Room
- ------------------------------------------------------------------------------------------------------------------------------------
392 11/12/97 206.19 Unit
393 1/29/98 0.20 Sq. Ft. McGuire Company 3,949 6/30/99
394 11/1/97 0.11 Sq. Ft. Self Storage Units 43,560 4/5/19
395 12/18/97 250.00 Unit
396 10/20/97 309.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
397 7/31/97 0.13 Sq. Ft. Family Bargin Center 8,064 2/28/03
398 NAP 4% of Gross Revenue Room
399 8/1/97 0.25 Sq. Ft. Proclinical 58,221 12/31/03
400 NAP 4% of Gross Revenue Room
401 NAP 4% of Gross Revenue Room
- ------------------------------------------------------------------------------------------------------------------------------------
402 4/2/98 0.10 Sq. Ft. Associated Grocers, Incorporated 44,500 6/1/16
403 5/1/98 0.25 Sq. Ft. Eckerd 10,908 9/20/17
404 11/19/97 14.00 Unit
405 8/22/97 220.00 Unit
406 1/29/98 0.25 Sq. Ft. Component Design Marketing 4,396 10/31/01
- ------------------------------------------------------------------------------------------------------------------------------------
407 3/26/97 175.00 Unit
408 5/1/98 0.20 Sq. Ft. Walgreens Co. 15,930 8/29/17
409 11/1/97 225.00 Unit
410 3/10/98 0.18 Sq. Ft. Wilson Young & Scheide Co. 6,400 8/31/99
411 12/18/97 0.41 Sq. Ft. Serve-Rite Drugs 6,020 1/31/02
- ------------------------------------------------------------------------------------------------------------------------------------
412 5/1/98 0.15 Sq. Ft. Bond Drug Company of Illinois 12,154 10/31/57
413 2/8/97 0.05 Sq. Ft. Warehouse Specialists, Inc. 285,000 3/1/13
414 8/1/97 225.00 Unit
415 NAP 4% of Gross Revenue Room
416 12/30/97 289.23 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
417 12/22/97 250.00 Unit
418 2/2/98 0.15 Sq. Ft. Broughton Ball, Inc. 6,730 2/1/01
419 8/31/97 310.00 Unit
420 2/1/98 0.15 Sq. Ft. Principe Azul 5,200 12/31/99
421 6/16/97 175.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
422 11/1/97 0.20 Sq. Ft. CVS 9,000 11/30/98
423 12/1/97 252.34 Unit
424 NAP 4% of Gross Revenue Room
425 NAP 4% of Gross Revenue Room
426 5/1/98 0.10 Sq. Ft. Office Depot, Inc. 30,936 12/31/12
- ------------------------------------------------------------------------------------------------------------------------------------
427 12/1/97 250.00 Unit
428 10/24/97 0.10 Sq. Ft. Sneaker Stadium 17,000 1/31/18
429 12/31/97 242.25 Unit
430 11/15/97 0.52 Sq. Ft. Lifetime Inc. 2,300 3/31/00
431 3/3/98 0.19 Sq. Ft. ALCOTT Inc. 17,158 3/3/18
- ------------------------------------------------------------------------------------------------------------------------------------
432 5/1/98 0.25 Sq. Ft. Walgreen Co. 13,905 6/30/31
433 5/1/98 0.30 Sq. Ft. Eckerd Corporation 9,505 11/8/17
434 12/16/97 0.10 Sq. Ft. Capitol Warehousing 8,000 11/30/15
435 11/30/97 293.00 Unit
436 10/1/97 0.21 Sq. Ft. Department Of Corrections - State Of Utah 31,140 11/30/01
- ------------------------------------------------------------------------------------------------------------------------------------
437 5/1/98 0.20 Sq. Ft. Rite Aid of Virginia, Inc. 12,213 8/31/17
438 5/1/98 0.20 Sq. Ft. Rite Aid of Virginia, Inc. 11,288 1/31/18
439 3/10/98 0.10 Sq. Ft. California Microwave 45,000 12/31/99
440 9/1/97 260.00 Unit
441 2/24/98 0.13 Sq. Ft. Federal Aviation Administration 29,170 9/30/17
- ------------------------------------------------------------------------------------------------------------------------------------
442 5/1/98 - Sq. Ft. Eckerd Corporation 10,908 12/3/17
443 8/15/97 0.11 Sq. Ft. Shaw Retail Properties 6,000 8/14/06
444 1/31/98 292.00 Unit
445 9/1/97 364.22 Unit
446 8/13/97 0.14 Sq. Ft. Jack In The Box 3,915 9/30/12
- ------------------------------------------------------------------------------------------------------------------------------------
447 5/1/98 0.30 Sq. Ft. Eckerd Corporation 10,908 12/28/17
448 5/1/98 0.27 Sq. Ft. Walgreens 13,905 12/31/56
449 1/13/98 0.20 Sq. Ft. Walgreens 11,879 6/30/02
450 11/6/97 0.15 Sq. Ft. Target (Shadow) NAV NAV
451 2/1/98 0.36 Sq. Ft. Lakeview Restaurant 4,658 6/30/04
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2nd Largest Tenant 3rd Largest Tenant
--------------------------------------------------------- -------------------------------------------------------------
Tenant Tenant
Control Area Leased Lease Area Leased Lease Control
No. Tenant Name (Sq. Ft.) Exp Date Tenant Name (Sq. Ft.) Exp Date No.
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
382 382
383 383
384 384
385 385
386 386
- ------------------------------------------------------------------------------------------------------------------------------------
387 Fellini's Corp (Street Level) 1,700 12/31/01 Biologique (3rd Flr) 1,475 7/31/01 387
388 Brake World 5,688 5/31/03 Precision Tune 3,000 3/31/01 388
389 389
390 Legal Services Program 10,653 5/1/02 The Executive Suite 7,319 1/1/03 390
391 391
- ------------------------------------------------------------------------------------------------------------------------------------
392 392
393 McGuire & Associates 2,076 6/30/99 McGuire Company 1,844 6/30/00 393
394 Carpets by Denny Lee 4,368 12/31/99 Professional Details 2,464 12/31/99 394
395 395
396 396
- ------------------------------------------------------------------------------------------------------------------------------------
397 Ici Paints 7,220 12/31/01 Super Silk 6,014 11/30/01 397
398 398
399 Conrex 4,723 10/31/98 Chemical seperators 2,200 8/31/00 399
400 400
401 401
- ------------------------------------------------------------------------------------------------------------------------------------
402 402
403 403
404 404
405 405
406 Florida Physicians 2,684 12/31/01 Allergy Care Center 2,023 2/28/06 406
- ------------------------------------------------------------------------------------------------------------------------------------
407 407
408 408
409 409
410 Healthy Options, Inc. 3,360 10/31/01 Nurturing Car Learning 3,200 11/30/98 410
411 Alta Med 5,502 3/31/00 Chief Auto Parts 4,868 4/30/01 411
- ------------------------------------------------------------------------------------------------------------------------------------
412 412
413 413
414 414
415 415
416 416
- ------------------------------------------------------------------------------------------------------------------------------------
417 417
418 Softshare 6,824 5/1/00 Shadoweastern, Inc 2,763 8/1/00 418
419 419
420 Hillcroft Newstand 3,445 2/28/01 Super One Hour Cleaners 2,600 12/31/98 420
421 421
- ------------------------------------------------------------------------------------------------------------------------------------
422 Ichiban, Inc. (Restaurant) 4,197 11/30/98 Sound Deals, Inc. 3,600 4/30/99 422
423 423
424 424
425 425
426 426
- ------------------------------------------------------------------------------------------------------------------------------------
427 427
428 428
429 429
430 Monami Trading 1,300 8/31/99 New York Accessories Inc. 1,200 5/1/00 430
431 431
- ------------------------------------------------------------------------------------------------------------------------------------
432 432
433 433
434 434
435 435
436 436
- ------------------------------------------------------------------------------------------------------------------------------------
437 437
438 438
439 439
440 440
441 FAA Airports District Office 5,861 9/30/01 441
- ------------------------------------------------------------------------------------------------------------------------------------
442 442
443 Men's Warehouse 4,500 8/18/09 LA Cellular 2,500 8/18/02 443
444 444
445 445
446 Boston Market 3,416 Green Burrito 1,960 446
- ------------------------------------------------------------------------------------------------------------------------------------
447 447
448 448
449 Hibernia Savings Bank 2,200 11/30/05 Dorothy Jean's Bakery 1,890 12/31/01 449
450 Pet Smart 26,344 1/31/18 450
451 Kaiser Foundation 3,773 1/31/99 Cobblestone Liquor 3,200 11/30/98 451
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Control
No. Property Name Address
==========================================================================================================================
<S> <C> <C>
452 Villa d'Venus 3124 Lake Villa Drive
453 Eckerd Drugs State Route 211 and Blumel Road
454 3848-3870 East Foothill Boulevard (East Pasadena) 3848-3870 East Foothill Boulevard
455 Westporte Apartments 2805 Larchmont Lane
456 Best Western St. Augustine 2445 State Road 16
- --------------------------------------------------------------------------------------------------------------------------
457 Nalley Valley Self Storage 2201 S. Tacoma Way
458 Woodley Apartments 7035 Woodley Avenue
459 Hidden Park Apartments 10613 Lookaway Drive
460 Saum Apartments 1919 South Grand Boulevard
461 Days Inn/Kingsland 1050 East King Avenue
- --------------------------------------------------------------------------------------------------------------------------
462 P Street 1743 P Street
463 Canoga Apartments 10400 East Canoga Avenue
464 Rite Aid Pharmacy (Liberty) Route 52
465 Woodway Apartments 2895 Dorthy Jeanie Drive
466 CVS Pharmacy (Philadelphia) 1099 Washington Avenue
- --------------------------------------------------------------------------------------------------------------------------
467 Eckerd Wildwood 4201 Atlantic Ave.
468 Arrow Press Properties 52-60 West 200 South Street
469 Northbrook Apartments 584 East Bullard Ave.
470 Best Western Statesville 1121 Morland Drive
471 CVS Drug Store (Martinsville) S.R. 39 & Randolph Street
- --------------------------------------------------------------------------------------------------------------------------
472 Sunnyside Acres Mobile Home Park 905 West Sunnyside Road
473 Auto/Retail Facility (Lauderhill) 6440 W. Commercial Boulevard
474 Campostella Corners Shopping Center South Military Highway/Campostella Road
475 Shops at State Bridge 5950 State Bridge Road
476 901 W. Jackson Boulevard 901 W Jackson Boulevard
- --------------------------------------------------------------------------------------------------------------------------
477 155 North Beacon Street 155 North Beacon Street
478 Eckerd Oviedo Mitchell Hammock & Lockwood
479 Fairfield Inn (Musselman-Mt.Sterling) 105 Stone Trace Drive
480 Hampton Inn (Musselman-Elizabethtown) 1035 Executive Drive
481 Stone Pine Center 20-40 Stone Pine Road
- --------------------------------------------------------------------------------------------------------------------------
482 CVS Pharmacy (Vernon) 142 Talcottville Road
483 Shannon Square 3605-45 Library Road
484 The Aspens 10130 Donner Trail Road
485 Casa Del Sol 951-969 Contra Costa Blvd.
486 Newtonian Gardens 70 West End Avenue
- --------------------------------------------------------------------------------------------------------------------------
487 Rite Aid Gaylord 419 Main Street
488 Springwood Village Shopping Center 6-48 West 7200 South
489 Bella Mar 825 Ocean Avenue
490 Amerihost Inn - Macomb 1646 North Lafayette
491 Amerihost Inn-Lancaster 1721 River Valley Circle North
- --------------------------------------------------------------------------------------------------------------------------
492 Amerihost Inn - Logan 12819 State Road 664
493 Amerihost Inn- Jeffersonville 11431 Allen Road NW
494 Eckerd Drug Store (Jacksonville) NWC Southside Boulevard and Touchton Road
495 CVS Brazil SEC Forest Ave & National Ave
496 Gardner Plaza Pearson Boulevard
- --------------------------------------------------------------------------------------------------------------------------
497 Lobo Canyon Shopping Center 700 East Roosevelt Ave.
498 Officemax Free-Standing Retail/Commercial Building South Side of Route 611
499 Saint Charles Place 2199 Southwest 81st Ave.
500 The In-Line Retail Shop Space (Peoria) 8940 and 8960 West Bell Road
501 Western Hills Shopping Center Highway 105 West
- --------------------------------------------------------------------------------------------------------------------------
502 Eckerd Drug Store (Ft. Myers) South Side of Palm Beach Boulevard (S.R. 80)
503 Keep it Self Storage - Van Nuys 6827 Woodley Avenue
504 Crystal Inn (Brigham City) 480 Westland Drive
505 421 Germantown Pike 421 Germantown Pike
506 Katella/Knott Shopping Center 7003-7063 Katella Avenue
- --------------------------------------------------------------------------------------------------------------------------
507 Amerihost Inn-Sycamore 1475 South Peace Rd.
508 Bashas Square 5136, 5140 & 5190 West Peoria Avenue
509 Eckerd Shreveport Mansfield Rd/Bert Kouns Ind Loop
510 825 Pine Street Apartments 825 Pine Street
511 Ocean Villa Townhomes #1 4330-4204 Dallas Drive
- --------------------------------------------------------------------------------------------------------------------------
512 Revco Pharmacy (Decatur) SWC of Candler Road and Misty Candler Road
513 Burbank Villas Apartments 14640 Burbank Blvd
514 Crestwood Apartments 1428 Raymond Street
515 121 Greene Street 121 Green Street
516 Payson Center SEC of State Route 87 and State Route 260
- --------------------------------------------------------------------------------------------------------------------------
517 Sunrise Condominiums 550 El Camino Real
518 Village Woods Commons Shopping Center 42 Nichols Street
519 Days Inn (Prescott Valley) 7875 East Highway 69
520 Inbus Engineering Building 6233 Industrial Way
521 CVS Pharmacy (Lancaster) 32-54 W. Lemon Street
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial
No. City State Code Groups Balance ($) Balance ($) Balance Pool Balance
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
452 Metairie LA 70002 $ 2,100,000 $ 2,098,247.85 0.06% 90.51%
453 Wallkill NY 10941 2,100,000 2,098,030.42 0.06 90.57
454 Pasadena CA 91107 2,100,000 2,096,994.77 0.06 90.63
455 Peoria IL 61615 2,100,000 2,096,775.81 0.06 90.69
456 St. Augustine FL 32092 2,100,000 2,096,489.79 0.06 90.75
- ------------------------------------------------------------------------------------------------------------------------------------
457 Tacoma WA 98409 2,100,000 2,095,512.36 0.06 90.81
458 Van Nuys CA 91406 2,100,000 2,093,358.54 0.06 90.87
459 St Louis MO 63137 2,100,000 2,093,340.17 0.06 90.93
460 St Louis MO 63104 2,100,000 2,093,340.17 0.06 90.99
461 Kingsland GA 31548 2,100,000 2,093,196.67 0.06 91.05
- ------------------------------------------------------------------------------------------------------------------------------------
462 Washington DC 20036 2,100,000 2,092,352.17 0.06 91.11
463 Chatsworth CA 91311 2,100,000 2,090,173.44 0.06 91.17
464 Liberty NY 12754 2,086,236 2,080,599.32 0.06 91.23
465 Fayetteville AR 72704 2,080,000 2,078,377.40 0.06 91.29
466 Philadelphia PA 19147 2,079,485 2,074,140.20 0.06 91.35
- ------------------------------------------------------------------------------------------------------------------------------------
467 Wildwood NJ 08260 2,081,092 2,072,762.95 0.06 91.41
468 Salt Lake City UT 84101 Group I 2,070,000 2,064,387.08 0.06 91.47
469 Fresno CA 93710 2,060,000 2,057,124.09 0.06 91.53
470 Statesville NC 28677 2,080,000 2,051,019.67 0.06 91.59
471 Martinsville IN 46151 2,050,000 2,038,393.46 0.06 91.64
- ------------------------------------------------------------------------------------------------------------------------------------
472 Idaho Falls ID 83402 2,025,000 2,022,107.75 0.06 91.70
473 Lauderhill FL 33119 2,000,000 1,997,734.77 0.06 91.76
474 Chesapeake VA 23320 2,000,000 1,997,261.83 0.06 91.82
475 Alpharetta GA 30136 2,000,000 1,995,371.55 0.06 91.87
476 Chicago IL 60607 2,000,000 1,993,832.91 0.06 91.93
- ------------------------------------------------------------------------------------------------------------------------------------
477 Brighton MA 02135 2,000,000 1,993,519.50 0.06 91.99
478 Oveido FL 32765 2,006,086 1,991,102.10 0.06 92.05
479 Mt. Sterling KY 40353 2,000,000 1,991,043.78 0.06 92.10
480 Elizabethtown KY 42701 2,000,000 1,991,043.78 0.06 92.16
481 Half Moon Bay CA 94019 2,000,000 1,989,373.41 0.06 92.22
- ------------------------------------------------------------------------------------------------------------------------------------
482 Vernon CT 06066 1,992,500 1,969,899.72 0.06 92.27
483 Castle Shannon PA 15234 1,950,000 1,947,537.00 0.06 92.33
484 Truckee CA 96161 1,950,000 1,947,409.68 0.06 92.39
485 Pleasant Hill CA 94523 1,950,000 1,946,082.26 0.06 92.44
486 Newton NJ 07860 1,950,000 1,945,508.29 0.06 92.50
- ------------------------------------------------------------------------------------------------------------------------------------
487 Gaylord MI 49735 1,946,593 1,943,949.59 0.06 92.55
488 Midvale UT 84047 Group I 1,950,000 1,943,757.63 0.06 92.61
489 Santa Monica CA 90403 1,950,000 1,941,881.28 0.06 92.67
490 Macomb IL 61455 1,950,000 1,932,862.50 0.06 92.72
491 Lancaster OH 43130 1,950,000 1,932,862.50 0.06 92.78
- ------------------------------------------------------------------------------------------------------------------------------------
492 Logan OH 43138 1,925,000 1,908,082.25 0.05 92.83
493 Octa OH 43128 1,925,000 1,908,082.25 0.05 92.89
494 Jacksonville FL 32216 1,910,000 1,905,798.57 0.05 92.94
495 Brazil IN 47834 1,912,074 1,900,652.99 0.05 93.00
496 Gardner MA 01440 1,900,000 1,898,520.76 0.05 93.05
- ------------------------------------------------------------------------------------------------------------------------------------
497 Grants NM 87020 1,900,000 1,897,834.17 0.05 93.11
498 Stroud Township PA 18360 1,900,000 1,897,760.17 0.05 93.16
499 Miramar FL 33025 1,900,000 1,894,978.07 0.05 93.22
500 Peoria AZ 85345 1,900,000 1,893,035.93 0.05 93.27
501 Montgomery TX 77356 1,900,000 1,892,853.54 0.05 93.32
- ------------------------------------------------------------------------------------------------------------------------------------
502 Ft. Myers Shores FL 33905 1,900,000 1,892,262.33 0.05 93.38
503 Van Nuys CA 91406 1,900,000 1,891,488.86 0.05 93.43
504 Brigham City UT 84302 1,900,000 1,891,128.86 0.05 93.49
505 Plymouth Meeting PA 19462 1,900,000 1,891,079.46 0.05 93.54
506 Stanton CA 90680 1,900,000 1,888,355.34 0.05 93.60
- ------------------------------------------------------------------------------------------------------------------------------------
507 Sycamore IL 60178 1,900,000 1,883,301.94 0.05 93.65
508 Glendale AZ 85302 1,875,000 1,869,403.60 0.05 93.70
509 Shreveport LA 71118 1,872,806 1,864,065.74 0.05 93.76
510 San Francisco CA 94108 1,870,000 1,862,440.71 0.05 93.81
511 Oxnard CA 93033 1,850,000 1,847,448.95 0.05 93.86
- ------------------------------------------------------------------------------------------------------------------------------------
512 Decatur GA 30032 1,844,000 1,840,419.99 0.05 93.92
513 Los Angeles CA 91411 1,827,000 1,824,386.08 0.05 93.97
514 Boise ID 83701 1,820,000 1,817,376.36 0.05 94.02
515 New York NY 10012 1,800,000 1,800,000.00 0.05 94.07
516 Payson AZ 85541 Group J 1,800,000 1,797,620.30 0.05 94.13
- ------------------------------------------------------------------------------------------------------------------------------------
517 Burlingame CA 94010 1,800,000 1,794,157.35 0.05 94.18
518 Ogden NY 14559 1,800,000 1,792,241.27 0.05 94.23
519 Prescott AZ 86314 1,800,000 1,790,697.82 0.05 94.28
520 Livermoore CA 94550 1,800,000 1,777,871.31 0.05 94.33
521 Lancaster PA 17603 1,765,000 1,765,000.00 0.05 94.38
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Interest Original Remaining
Control Mortgage Administrative Accrual Amortization Interest-Only Interest-Only
No. Rate (%) Cost Rate (%) Method Type Period (Mos.) Period (Mos.)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
452 6.9100% 0.0962% Actual/360 Amortizing Balloon 0 0
453 7.3750 0.0962 Actual/360 Amortizing Balloon 0 0
454 7.0500 0.1462 Actual/360 Amortizing (ARD) 0 0
455 6.7580 0.0962 Actual/360 Amortizing Balloon 0 0
456 8.1250 0.0962 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
457 7.3500 0.0962 Actual/360 Amortizing Balloon 0 0
458 7.2280 0.0962 Actual/360 Amortizing Balloon 0 0
459 7.2140 0.0962 Actual/360 Amortizing Balloon 0 0
460 7.2140 0.0962 Actual/360 Amortizing Balloon 0 0
461 7.8750 0.0962 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
462 7.3750 0.0962 Actual/360 Amortizing Balloon 0 0
463 7.1130 0.0962 Actual/360 Amortizing Balloon 0 0
464 7.0200 0.0962 30/360 Amortizing Balloon 0 0
465 7.2500 0.0962 Actual/360 Amortizing Balloon 0 0
466 6.9700 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
467 7.6900 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
468 7.9990 0.0962 Actual/360 Amortizing Balloon 0 0
469 7.1510 0.0962 Actual/360 Amortizing Balloon 0 0
470 8.3750 0.0962 Actual/360 Fully Amortizing 0 0
471 7.3200 0.0962 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
472 7.0580 0.0962 Actual/360 Amortizing Balloon 0 0
473 7.5400 0.1462 Actual/360 Amortizing Balloon 0 0
474 7.2300 0.1562 Actual/360 Amortizing Balloon 0 0
475 6.9200 0.0962 Actual/360 Amortizing (ARD) 0 0
476 7.3560 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
477 7.8750 0.0962 30/360 Amortizing Balloon 0 0
478 7.1600 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
479 7.6720 0.1462 Actual/360 Amortizing Balloon 0 0
480 7.6720 0.1462 Actual/360 Amortizing Balloon 0 0
481 7.7630 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
482 7.2500 0.0962 30/360 Fully Amortizing 0 0
483 7.5500 0.1462 Actual/360 Amortizing (ARD) 0 0
484 7.3510 0.0962 Actual/360 Amortizing Balloon 0 0
485 7.6750 0.0962 Actual/360 Amortizing Balloon 0 0
486 7.8700 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
487 7.1250 0.0962 30/360 Amortizing Balloon 0 0
488 7.9590 0.0962 Actual/360 Amortizing Balloon 0 0
489 8.1250 0.0962 Actual/360 Amortizing Balloon 0 0
490 7.6250 0.0962 Actual/360 Fully Amortizing 0 0
491 7.6250 0.0962 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
492 7.6250 0.0962 Actual/360 Fully Amortizing 0 0
493 7.6250 0.0962 Actual/360 Fully Amortizing 0 0
494 7.2800 0.0962 Actual/360 Amortizing Balloon 0 0
495 6.9375 0.0962 30/360 Fully Amortizing 0 0
496 7.2600 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
497 7.5000 0.0962 Actual/360 Amortizing Balloon 0 0
498 7.2900 0.0962 Actual/360 Amortizing Balloon 0 0
499 7.0625 0.0962 Actual/360 Amortizing Balloon 0 0
500 8.2400 0.1712 Actual/360 Amortizing Balloon 0 0
501 7.6560 0.1462 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
502 6.9200 0.0962 30/360 Fully Amortizing 0 0
503 7.6700 0.0962 Actual/360 Amortizing Balloon 0 0
504 7.4100 0.1712 Actual/360 Amortizing (ARD) 0 0
505 7.3750 0.0962 Actual/360 Amortizing Balloon 0 0
506 7.3690 0.0962 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
507 7.6250 0.0962 Actual/360 Fully Amortizing 0 0
508 7.5200 0.1712 Actual/360 Amortizing (ARD) 0 0
509 7.7800 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
510 7.7960 0.0962 Actual/360 Amortizing Balloon 0 0
511 7.2010 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
512 7.1000 0.0962 30/360 Fully Amortizing 0 0
513 7.0510 0.0962 Actual/360 Amortizing Balloon 0 0
514 7.0200 0.0962 Actual/360 Amortizing Balloon 0 0
515 7.4600 0.0962 Actual/360 Amortizing Balloon 0 0
516 7.3700 0.1462 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
517 7.0960 0.0962 Actual/360 Amortizing Balloon 0 0
518 7.9100 0.1662 Actual/360 Amortizing (ARD) 0 0
519 7.9360 0.1462 30/360 Fully Amortizing 0 0
520 7.4060 0.0962 30/360 Fully Amortizing 0 0
521 6.9000 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Original Remaining
Term to Term to Original Remaining
Control Maturity Maturity Amortization Amortization Origination Maturity Balloon
No. (Mos.) (Mos.) Term (Mos.) Term (Mos.) Date or ARD Balance ($) Property Type
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
452 120 119 360 359 3/12/98 4/1/08 $ 1,827,465 Multifamily
453 120 119 330 329 4/1/98 4/1/08 1,783,764 Retail - Unanchored
454 144 142 360 358 2/17/98 3/1/10 1,754,530 Retail - Unanchored
455 120 118 360 358 2/20/98 3/1/08 1,820,218 Multifamily
456 240 239 240 239 3/17/98 4/1/18 95,741 Hotel - Limited Service
- -------------------------------------------------------------------------------------------------------------------------------
457 240 238 300 298 2/18/98 3/1/18 854,449 Self Storage
458 120 116 360 356 12/16/97 1/1/08 1,841,818 Multifamily
459 120 116 360 356 12/22/97 1/15/08 1,841,153 Multifamily
460 120 116 360 356 12/23/97 1/15/08 1,841,153 Multifamily
461 240 238 240 238 2/17/98 3/1/18 90,368 Hotel - Limited Service
- -------------------------------------------------------------------------------------------------------------------------------
462 120 115 360 355 11/20/97 12/1/07 1,849,060 Multifamily
463 120 114 360 354 10/30/97 11/1/07 1,836,396 Multifamily
464 238 236 288 286 2/27/98 1/1/18 641,401 CTL
465 120 119 360 359 3/23/98 4/1/08 1,826,336 Multifamily
466 239 237 239 237 2/2/98 2/1/18 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
467 239 236 239 236 1/29/98 1/1/18 - CTL
468 120 116 360 356 12/18/97 1/1/08 1,850,508 Retail - Unanchored
469 120 118 360 358 2/26/98 3/1/08 1,804,395 Multifamily
470 180 175 180 175 11/13/97 12/1/12 53,276 Hotel - Limited Service
471 238 235 238 235 1/16/98 12/1/17 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
472 120 118 360 358 2/20/98 3/1/08 1,769,404 Mobile Home Park
473 120 119 300 299 3/25/98 4/1/08 1,626,871 Retail - Unanchored
474 120 118 360 358 2/12/98 3/1/08 1,755,450 Retail - Anchored
475 120 118 300 298 2/19/98 3/1/08 1,596,489 Retail - Unanchored
476 120 116 360 356 12/31/97 1/1/08 1,759,875 Office
- -------------------------------------------------------------------------------------------------------------------------------
477 84 81 300 297 1/22/98 2/1/05 1,760,523 Mixed Use
478 227 223 227 223 12/22/97 12/1/16 - CTL
479 120 116 300 296 12/31/97 1/1/08 1,632,176 Hotel - Limited Service
480 120 116 300 296 12/31/97 1/1/08 1,632,176 Hotel - Limited Service
481 120 115 300 295 11/20/97 12/1/07 1,636,878 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
482 240 234 240 234 10/29/97 11/1/17 - CTL
483 120 118 360 358 2/24/98 3/1/08 1,725,602 Retail - Anchored
484 120 118 360 358 2/26/98 3/1/08 1,716,915 Multifamily
485 120 118 300 298 2/25/98 3/1/08 1,592,897 Retail - Unanchored
486 120 117 360 357 1/26/98 2/1/08 1,737,535 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
487 237 236 284 283 3/26/98 1/1/18 580,927 CTL
488 120 115 360 355 11/25/97 12/1/07 1,741,900 Retail - Unanchored
489 120 116 300 296 12/10/97 1/1/08 1,612,376 Health Care - Assisted Living
490 240 235 240 235 11/7/97 12/1/17 75,543 Hotel - Limited Service
491 240 235 240 235 11/14/97 12/1/17 75,543 Hotel - Limited Service
- -------------------------------------------------------------------------------------------------------------------------------
492 240 235 240 235 11/7/97 12/1/17 74,578 Hotel - Limited Service
493 240 235 240 235 11/7/97 12/1/17 74,578 Hotel - Limited Service
494 238 236 298 296 2/4/98 1/1/18 773,007 Retail - Anchored
495 237 234 237 234 1/12/98 11/1/17 - CTL
496 120 119 360 359 3/13/98 4/1/08 1,668,719 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
497 120 119 300 299 3/30/98 4/1/08 1,543,676 Retail - Anchored
498 120 119 300 299 3/31/98 4/1/08 1,533,895 Retail - Anchored
499 120 117 360 357 1/13/98 2/1/08 1,658,996 Multifamily
500 120 114 360 354 10/7/97 11/1/07 1,708,249 Retail - Anchored
501 120 116 324 320 12/31/97 1/1/08 1,611,719 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
502 234 232 234 232 2/4/98 9/1/17 - CTL
503 240 236 300 296 12/29/97 1/1/18 791,862 Self Storage
504 180 176 300 296 12/23/97 12/31/12 1,227,294 Hotel - Limited Service
505 120 116 300 296 12/16/97 1/1/08 1,536,892 Retail - Unanchored
506 180 178 180 178 2/12/98 3/1/13 - Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
507 240 235 240 235 11/21/97 12/1/17 73,608 Hotel - Limited Service
508 120 116 360 356 12/30/97 1/1/08 1,656,723 Retail - Anchored
509 237 232 237 232 11/25/97 9/1/17 - CTL
510 120 114 360 354 10/22/97 11/1/07 1,663,654 Multifamily
511 120 118 360 358 2/26/98 3/1/08 1,622,569 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
512 237 236 237 236 3/30/98 1/1/18 - CTL
513 120 118 360 358 2/9/98 3/1/08 1,596,101 Multifamily
514 120 118 360 358 2/5/98 3/1/08 1,588,681 Multifamily
515 120 120 360 360 4/2/98 5/1/08 1,589,200 Retail - Unanchored
516 120 118 360 358 2/6/98 3/1/08 1,585,615 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
517 120 116 360 356 12/31/97 1/1/08 1,573,297 Multifamily
518 120 116 300 296 12/8/97 1/1/08 1,479,199 Retail - Unanchored
519 240 237 240 237 1/5/98 2/1/18 - Hotel - Limited Service
520 180 176 180 176 12/30/97 1/1/13 - Industrial
521 249 249 249 249 4/6/98 2/1/19 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Annual
Control Debt Net Appraised
No. Prepayment Provisions Service ($) Cash Flow ($) DSCR (x) Value ($)
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
452 L(2),D(7.50),O(.50) $ 166,136 $ 223,906 1.35x $ 2,625,000
453 L(4),D(5.75),O(.25) 178,510 242,479 1.36 2,720,000
454 L(6.5),YM1%(3),1(2),O(.5) 168,503 217,073 1.29 2,680,000
455 L(5),D(4.83),O(.17) 163,581 250,815 1.53 2,830,000
456 L(2.083),D(17.417),O(.5) 212,748 363,272 1.71 3,000,000
- ------------------------------------------------------------------------------------------------------------------------------
457 L(4),D(15.75),O(.25) 183,774 240,502 1.31 3,100,000
458 L(4),D(5.83),O(.17) 171,533 269,551 1.57 2,800,000
459 L(4),D(5.83),O(.17) 171,294 254,071 1.48 2,700,000
460 L(4),D(5.83),O(.17) 171,294 255,729 1.49 2,700,000
461 L(4),D(15.75),O(.25) 208,827 348,801 1.67 2,950,000
- ------------------------------------------------------------------------------------------------------------------------------
462 L(4),YM1%(5.75),O(.25) 174,050 216,737 1.25 2,725,000
463 L(4),D(5.83),O(.17) 169,573 241,797 1.43 2,790,000
464 L(8),D(11.33),O(.5) 180,175 186,120 NAP 2,125,000
465 L(4),D(5.75),O(.25) 170,271 222,725 1.31 2,600,000
466 L(10),D(9.92) Step Loan 182,756 NAP 2,140,000
- ------------------------------------------------------------------------------------------------------------------------------
467 L(8),YM1%(11.67),O(.25) Step Loan 193,719 NAP 2,200,000
468 L(4),D(5.83),O(.17) 182,250 201,905 1.11 2,750,000
469 L(4),D(5.83),O(.17) 166,977 223,812 1.34 2,980,000
470 L(5),YM1%(9.75),O(.25) 243,966 342,182 1.40 3,100,000
471 L(10),D(9.83) 196,204 201,150 NAP 2,170,000
- ------------------------------------------------------------------------------------------------------------------------------
472 L(4),D(5.83),O(.17) 162,616 213,204 1.31 2,700,000
473 L(5),D(4.75),O(.25) 177,983 250,211 1.41 2,675,000
474 L(4),D(5.75),O(.25) 163,397 212,131 1.30 2,600,000
475 L(5),D(4.75),O(.25) 168,404 225,663 1.34 2,680,000
476 L(4),D(5.83),O(.17) 165,451 255,436 1.54 2,900,000
- ------------------------------------------------------------------------------------------------------------------------------
477 L(4),YM1%(2),O(1) 183,253 265,697 1.45 2,600,000
478 L(8),D(10.917) Step Loan 211,711 NAP 2,625,000
479 L(5),D(4.5),O(.5) 180,052 276,131 1.53 2,900,000
480 L(5),D(4.5),O(.5) 180,052 305,322 1.70 3,600,000
481 L(4),D(5.83),O(.17) 181,484 273,637 1.51 2,850,000
- ------------------------------------------------------------------------------------------------------------------------------
482 L(5),YM1%(15) or D(Borr) 188,979 254,625 NAP 3,100,000
483 L(4),D(5.75),O(.25) 164,418 219,554 1.34 2,600,000
484 L(4),D(5.83),O(.17) 161,235 201,193 1.25 2,530,000
485 L(4),D(5.83),O(.17) 175,596 275,982 1.57 3,450,000
486 L(4),YM1%(5.75),O(.25) 169,585 222,178 1.31 3,000,000
- ------------------------------------------------------------------------------------------------------------------------------
487 L(6),D(13.75) 170,416 170,927 NAP 1,900,000
488 L(4),D(5.83),O(.17) 171,033 223,036 1.30 2,600,000
489 L(4),YM1%(5.75),O(.25) 182,547 259,530 1.42 5,500,000
490 L(5),D(14.75),O(.25) 190,301 269,876 1.42 2,800,000
491 L(5),D(14.75),O(.25) 190,301 283,118 1.49 3,500,000
- ------------------------------------------------------------------------------------------------------------------------------
492 L(5),D(14.75),O(.25) 187,862 263,470 1.40 3,000,000
493 L(5),D(14.75),O(.25) 187,862 264,848 1.41 3,000,000
494 L(10),D(9.33),O(.5) 166,505 201,681 1.21 2,450,000
495 L(8),YM1%(11.25),O(.5) 178,071 183,413 NAP 1,925,000
496 L(4),D(5.75),O(.25) 155,691 239,693 1.54 2,900,000
- ------------------------------------------------------------------------------------------------------------------------------
497 L(4),D(6) 168,490 224,250 1.33 2,600,000
498 L(4),D(5.75),O(.25) 165,388 219,611 1.33 2,600,000
499 L(4),D(5.75),O(.25) 152,647 228,937 1.50 2,600,000
500 L(4),YM1%(5.5),O(.5) 171,129 242,712 1.42 2,935,000
501 L(4),D(5.5),O(.5) 166,699 213,603 1.28 2,800,000
- ------------------------------------------------------------------------------------------------------------------------------
502 L(10),D(9.5) 177,773 195,933 NAP 2,290,000
503 L(4),D(15.75),O(.25) 171,019 226,308 1.32 2,750,000
504 L(7),D(7.5),O(.5) 167,157 249,780 1.49 3,200,000
505 L(4),D(6) 166,641 209,685 1.26 2,550,000
506 L(4),D(10.83),O(.17) 209,665 304,676 1.45 3,520,000
- ------------------------------------------------------------------------------------------------------------------------------
507 L(5),D(14.75),O(.25) 185,422 261,967 1.41 2,800,000
508 L(4),YM1%(5.5),O(.5) 157,632 214,734 1.36 2,500,000
509 L(10),YM1%(9.75) Step Loan 206,850 NAP 2,250,000
510 L(4),D(5.83),O(.17) 161,477 193,214 1.20 2,660,000
511 L(4),D(5.83),O(.17) 150,706 210,987 1.40 2,300,000
- ------------------------------------------------------------------------------------------------------------------------------
512 L(10),D(9.75) 173,884 165,654 NAP 2,285,000
513 L(4),D(5.67),O(.33) 146,613 196,431 1.34 2,500,000
514 L(4),YM1%(5.75),O(.25) 145,596 190,083 1.31 2,850,000
515 L(4),D(5.5),O(.5) 150,439 206,852 1.37 2,400,000
516 L(4),YM1%(5.75),O(.25) 149,112 202,922 1.36 2,500,000
- ------------------------------------------------------------------------------------------------------------------------------
517 L(4),D(5.83),O(.17) 145,101 188,553 1.30 2,775,000
518 L(5),D(4.75),O(.25) 165,427 221,200 1.34 2,400,000
519 L(10),D(9.5),O(.5) 179,812 260,767 1.45 2,400,000
520 L(4),D(10.83),O(.17) 199,083 273,807 1.38 3,345,000
521 L(10),D(10.75) Step Loan 157,499 NAP 1,800,000
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten
Hospitality Sq. Ft., Loan per
Cut-off Scheduled Average Units Sq. Ft., Units
Control Appraisal Date Maturity Date Daily Year Year Bed, Pad Bed, Pad Occupancy
No. Year LTV (%) LTV (%) Rate ($) Built Renovated or Room or Room ($) Percentage (%)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
452 1998 79.9% 69.6% 1971 1995 79 Units $ 26,582.28 96.2%
453 1998 77.1 65.6 1997 N/A 13,500 Sq. Ft. 155.56 100.0
454 1997 78.3 65.5 1997 N/A 12,124 Sq. Ft. 173.21 100.0
455 1997 74.1 64.3 1974 1997 92 Units 22,826.09 95.7
456 1997 69.9 3.2 $43.00 1967 1993 120 Rooms 17,500.00 NAP
- --------------------------------------------------------------------------------------------------------------------------------
457 1997 67.6 27.6 1914 1987 692 Units 3,034.68 92.0
458 1997 74.8 65.8 1989 N/A 50 Units 42,000.00 94.0
459 1997 77.5 68.2 1964 N/A 168 Units 12,500.00 88.7
460 1997 77.5 68.2 1926 1997 114 Units 18,421.05 97.0
461 1997 71.0 3.1 38.90 1986 N/A 120 Rooms 17,500.00 NAP
- --------------------------------------------------------------------------------------------------------------------------------
462 1997 76.8 67.9 1910 1990 27 Units 77,777.78 100.0
463 1997 74.9 65.8 1989 N/A 43 Units 48,837.21 100.0
464 1998 NAP 30.2 1997 N/A 11,180 Sq. Ft. 186.60 100.0
465 1998 79.9 70.2 1993 N/A 72 Units 28,888.89 97.2
466 1998 NAP 0.0 1997 N/A 10,125 Sq. Ft. 205.38 100.0
- --------------------------------------------------------------------------------------------------------------------------------
467 1997 NAP 0.0 1997 N/A 10,908 Sq. Ft. 190.79 100.0
468 1997 75.1 67.3 1914 1998 35,638 Sq. Ft. 58.08 94.0
469 1998 69.0 60.6 1971 N/A 90 Units 22,888.89 91.1
470 1997 66.2 1.7 55.00 1995 N/A 69 Rooms 30,144.93 NAP
471 1997 NAP 0.0 1998 N/A 12,608 Sq. Ft. 162.60 100.0
- --------------------------------------------------------------------------------------------------------------------------------
472 1998 74.9 65.5 1971 N/A 222 Spaces 9,121.62 100.0
473 1998 74.7 60.8 1985 N/A 19,463 Sq. Ft. 102.76 100.0
474 1997 76.8 67.5 1986 N/A 43,750 Sq. Ft. 45.71 100.0
475 1997 74.5 59.6 1997-98 N/A 16,340 Sq. Ft. 122.40 100.0
476 1997 68.8 60.7 1904 1985 54,642 Sq. Ft. 36.60 100.0
- --------------------------------------------------------------------------------------------------------------------------------
477 1997 76.7 67.7 1952 N/A 127,365 Sq. Ft. 15.70 93.3
478 1997 NAP 0.0 1997 N/A 10,908 Sq. Ft. 183.91 100.0
479 1997 68.7 56.3 49.29 1997 N/A 61 Rooms 32,786.89 NAP
480 1997 55.3 45.3 55.88 1996 N/A 60 Rooms 33,333.33 NAP
481 1997 69.8 57.4 1997 N/A 17,945 Sq. Ft. 111.45 100.0
- --------------------------------------------------------------------------------------------------------------------------------
482 1997 NAP 0.0 1997 N/A 10,500 Sq. Ft. 189.76 100.0
483 1997 74.9 66.4 1988-89 N/A 31,012 Sq. Ft. 62.88 100.0
484 1998 77.0 67.9 1997 N/A 32 Units 60,937.50 100.0
485 1997 56.4 46.2 1977 N/A 22,714 Sq. Ft. 85.85 100.0
486 1997 64.9 57.9 1963 1994 92 Units 21,195.65 99.0
- --------------------------------------------------------------------------------------------------------------------------------
487 1998 NAP 30.6 1998 N/A 9,905 Sq. Ft. 196.53 100.0
488 1997 74.8 67.0 1984 N/A 29,510 Sq. Ft. 66.08 100.0
489 1997 35.3 29.3 1952 1996 32 Beds 60,937.50 96.0
490 1997 69.0 2.7 55.00 1995 N/A 60 Rooms 32,500.00 NAP
491 1997 55.2 2.2 55.00 1992 1996 60 Rooms 32,500.00 NAP
- --------------------------------------------------------------------------------------------------------------------------------
492 1998 63.6 2.5 60.50 1993 N/A 60 Rooms 32,083.33 NAP
493 1997 63.6 2.5 58.00 1994 N/A 60 Rooms 32,083.33 NAP
494 1998 77.8 31.6 1998 N/A 10,908 Sq. Ft. 175.10 100.0
495 1997 NAP 0.0 1997 N/A 10,722 Sq. Ft. 178.33 100.0
496 1998 65.5 57.5 1965 1990 77,679 Sq. Ft. 24.46 97.7
- --------------------------------------------------------------------------------------------------------------------------------
497 1997 73.0 59.4 1978 N/A 114,614 Sq. Ft. 16.58 96.0
498 1998 73.0 59.0 1997 N/A 23,619 Sq. Ft. 80.44 100.0
499 1998 72.9 63.8 1986 N/A 64 Units 29,687.50 96.9
500 1997 64.5 58.2 1997 N/A 21,552 Sq. Ft. 88.16 74.1
501 1997 67.6 57.6 1984-94 N/A 58,444 Sq. Ft. 32.51 80.7
- --------------------------------------------------------------------------------------------------------------------------------
502 1997 NAP 0.0 1997 N/A 10,908 Sq. Ft. 174.18 100.0
503 1997 68.8 28.8 1987 N/A 452 Units 4,203.54 82.0
504 1997 59.1 38.4 50.60 1994 N/A 52 Rooms 36,538.46 NAP
505 1997 74.2 60.3 1969 1988 10,119 Sq. Ft. 187.77 100.0
506 1997 53.7 0.0 1986 N/A 31,689 Sq. Ft. 59.96 96.0
- --------------------------------------------------------------------------------------------------------------------------------
507 1997 67.3 2.6 51.00 1996 N/A 60 Rooms 31,666.67 NAP
508 1997 74.8 66.3 1986-1987 N/A 49,569 Sq. Ft. 37.83 84.2
509 1997 NAP 0.0 1997 N/A 10,908 Sq. Ft. 171.69 100.0
510 1997 70.0 62.5 1923 1997 15 Units 124,666.67 100.0
511 1998 80.3 70.6 1973 N/A 40 Units 46,250.00 100.0
- --------------------------------------------------------------------------------------------------------------------------------
512 1998 NAP 0.0 1997 N/A 10,722 Sq. Ft. 171.98 100.0
513 1997 73.0 63.8 1981 N/A 36 Units 50,750.00 100.0
514 1997 63.8 55.7 1993 N/A 68 Units 26,764.71 96.0
515 1998 75.0 66.2 1880s N/A 7,500 Sq. Ft. 240.00 100.0
516 1997 71.9 63.4 1976-1977 N/A 60,968 Sq. Ft. 29.52 100.0
- --------------------------------------------------------------------------------------------------------------------------------
517 1997 64.7 56.7 1997 N/A 12 Units 150,000.00 100.0
518 1997 74.7 61.6 1989 N/A 41,600 Sq. Ft. 43.27 100.0
519 1997 74.6 0.0 58.07 1991,1993 N/A 59 Rooms 30,508.47 NAP
520 1997 53.2 0.0 1983 N/A 59,359 Sq. Ft. 30.32 100.0
521 1998 NAP 0.0 1998 N/A 10,004 Sq. Ft. 176.43 100.0
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Tenant
------------------------------------------------------------------------------
Tenant
Control Rent Roll Underwriting Area Leased Lease
No. Date Reserves ($) per Tenant Name (Sq. Ft.) Exp Date
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
452 2/25/98 $205.00 Unit
453 0 0.10 Sq. Ft. Eckerd Drugs 13,500 4/1/12
454 12/1/97 0.10 Sq. Ft. Hollywood Video 6,500 6/26/07
455 1/16/98 328.00 Unit
456 NAP 4% of Gross Revenue Room
- ------------------------------------------------------------------------------------------------------------------------------------
457 10/15/97 29.33 Unit
458 10/22/97 285.50 Unit
459 10/16/97 292.80 Unit
460 12/1/97 175.82 Unit
461 NAP 4% of Gross Revenue Room
- ------------------------------------------------------------------------------------------------------------------------------------
462 9/1/97 212.00 Unit
463 9/1/97 312.23 Unit
464 5/1/98 0.16 Sq. Ft. Rite-Aid of New York, Inc. 11,180 12/31/17
465 3/1/98 200.00 Unit
466 5/1/98 0.20 Sq. Ft. Eleventh Street CVS, Inc. 10,125 1/31/18
- ------------------------------------------------------------------------------------------------------------------------------------
467 5/1/98 0.30 Sq. Ft. Eckerd Corporation 10,908 2/1/98
468 10/21/97 0.22 Sq. Ft. Benihana Of Tokyo 7,530 3/11/06
469 2/17/98 258.62 Unit
470 NAP 4% of Gross Revenue Room
471 5/1/98 0.25 Sq. Ft. Revco 12,608 8/31/15
- ------------------------------------------------------------------------------------------------------------------------------------
472 11/3/97 63.00 Space
473 1/1/98 0.21 Sq. Ft. Tire Kingdom 8,475 7/31/14
474 11/14/97 0.15 Sq. Ft. Food Lion 25,000 5/31/06
475 1/1/98 0.15 Sq. Ft. Kinkos, Inc. 5,600 1/12/03
476 11/17/97 0.18 Sq. Ft. Catholic Charties 34,065 8/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
477 10/18/97 0.10 Sq. Ft. Cort Furniture Rental, Corp. 43,600 4/30/07
478 5/1/98 - Sq. Ft. Eckerd Corporation 10,908 1/29/17
479 NAP 4% of Gross Revenue Room
480 NAP 4% of Gross Revenue Room
481 9/25/97 0.09 Sq. Ft. Robert & Kay Lynn, d/b/a/ Half Moon Bay Coffee 2,590 2/28/02
- ------------------------------------------------------------------------------------------------------------------------------------
482 5/1/98 0.25 Sq. Ft. Vernon CVS, Inc. 10,500 1/31/18
483 2/9/98 0.15 Sq. Ft. Goodyear 6,192 3/31/04
484 1/28/98 160.31 Unit
485 11/1/97 0.42 Sq. Ft. Carlos Murphys 7,792 8/31/03
486 8/15/97 250.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
487 5/1/98 0.30 Sq. Ft. Rite Aid of Michigan 9,905 2/22/18
488 9/1/97 0.34 Sq. Ft. Seagull Printing 16,964 8/31/00
489 9/30/97 265.00 Bed
490 NAP 4% of Gross Revenue Room
491 NAP 4% of Gross Revenue Room
- ------------------------------------------------------------------------------------------------------------------------------------
492 NAP 4% of Gross Revenue Room
493 NAP 4% of Gross Revenue Room
494 5/29/97 0.20 Sq. Ft. Eckerd Corporation 10,908
495 5/1/98 0.15 Sq. Ft. Hook-SupeRx, Inc 10,722 12/31/17
496 2/23/98 0.15 Sq. Ft. Ocean State Job Lot 25,600 1/31/08
- ------------------------------------------------------------------------------------------------------------------------------------
497 10/1/97 0.10 Sq. Ft. Smith's Food King 25,600 12/31/03
498 7/10/97 0.11 Sq. Ft. Office Max 23,619 2/1/13
499 12/29/97 243.00 Unit
500 8/19/97 0.12 Sq. Ft. Albertson's (Shadow) 50,245 NAV
501 12/29/97 0.10 Sq. Ft. Mariels 22,694 4/1/04
- ------------------------------------------------------------------------------------------------------------------------------------
502 5/1/98 0.25 Sq. Ft. Eckerd Corporation 10,908 10/12/17
503 9/22/97 18.34 Unit
504 NAP 4% of Gross Revenue Room
505 10/22/97 0.10 Sq. Ft. Pearle, Inc. 6,104 10/1/00
506 1/2/98 0.29 Sq. Ft. Pet City 7,536 12/31/06
- ------------------------------------------------------------------------------------------------------------------------------------
507 NAP 4% of Gross Revenue Room
508 11/1/97 0.28 Sq. Ft. Basha's (Shadow) 30,600 NAV
509 5/1/98 - Sq. Ft. Eckerd Corporation 10,908 9/30/17
510 7/27/97 406.00 Unit
511 11/12/97 191.88 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
512 5/1/98 0.25 Sq. Ft. Revco 10,722 12/31/17
513 12/12/97 318.00 Unit
514 8/13/97 247.00 Unit
515 3/1/98 0.15 Sq. Ft.
516 1/1/98 0.25 Sq. Ft. Webbers IGA 22,400 12/31/01
- ------------------------------------------------------------------------------------------------------------------------------------
517 12/31/97 200.00 Unit
518 6/17/97 0.20 Sq. Ft. Atlas Gym 7,668 7/31/07
519 NAP 4% of Gross Revenue Room
520 7/28/97 0.24 Sq. Ft. Inbus Engineering 59,359 2/29/04
521 5/1/98 0.25 Sq. Ft. West Lemon CVS, Inc. 10,004 1/31/19
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2nd Largest Tenant 3rd Largest Tenant
--------------------------------------------------------- -------------------------------------------------------------
Tenant Tenant
Control Area Leased Lease Area Leased Lease Control
No. Tenant Name (Sq. Ft.) Exp Date Tenant Name (Sq. Ft.) Exp Date No.
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
452 452
453 453
454 Lakeshore Learning 5,624 7/4/07 454
455 455
456 456
- ------------------------------------------------------------------------------------------------------------------------------------
457 457
458 458
459 459
460 460
461 461
- ------------------------------------------------------------------------------------------------------------------------------------
462 462
463 463
464 464
465 465
466 466
- ------------------------------------------------------------------------------------------------------------------------------------
467 467
468 Absolute Rest 5,460 11/1/06 Blue Iguana 4,161 7/1/01 468
469 469
470 470
471 471
- ------------------------------------------------------------------------------------------------------------------------------------
472 472
473 Fred's Auto Service 2,730 9/30/15 Precision Tune 2,728 8/31/06 473
474 Eckerd 9,375 4/30/01 Moovies 3,750 1/31/00 474
475 Bell South Mobility 4,500 12/31/02 Re/Max Realty 3,440 12/31/02 475
476 901 Jackson L.L.C. 7,816 6/30/04 Paralyzed Vets of USA 3,214 5/31/00 476
- ------------------------------------------------------------------------------------------------------------------------------------
477 Spectrowax Corporation 34,445 8/31/02 Rehearsal Services, Inc. 29,915 7/31/04 477
478 478
479 479
480 480
481 Christine Besser 2,050 NAV PG&E 2,050 NAV 481
- ------------------------------------------------------------------------------------------------------------------------------------
482 482
483 Sherwin-Williams 5,000 9/30/98 Meineke 4,800 4/30/02 483
484 484
485 Computer Renaissance 6,837 12/31/03 Luggage Center 3,062 4/30/01 485
486 486
- ------------------------------------------------------------------------------------------------------------------------------------
487 487
488 Micron Electronics, Inc. 9,396 12/31/00 America's Best 3,150 12/31/99 488
489 489
490 490
491 491
- ------------------------------------------------------------------------------------------------------------------------------------
492 492
493 493
494 494
495 495
496 Donelan's Supermarket 20,250 7/31/99 Brooks Drugs 9,200 1/31/03 496
- ------------------------------------------------------------------------------------------------------------------------------------
497 TG & Y - Coast to Coast Hardware 25,000 10/31/03 Heilig - Myers 25,000 9/30/07 497
498 498
499 499
500 Video Update Inc. 6,597 5/30/07 Fuzzy's Pizza 1,690 10/2/02 500
501 Lighthouse Fellowship 4,000 11/1/00 Lake Conroe Medical Center 3,250 4/1/00 501
- ------------------------------------------------------------------------------------------------------------------------------------
502 502
503 503
504 504
505 Hear-X Ltd. Incorporated 1,935 1/31/02 Starbucks 1,480 3/30/06 505
506 Shoe City 7,361 12/31/06 Nevada Bobs Golf 5,555 2/3/03 506
- ------------------------------------------------------------------------------------------------------------------------------------
507 507
508 Direct Marketing Services 12,396 7/31/03 One Heart Day Care 3,500 5/31/02 508
509 509
510 510
511 511
- ------------------------------------------------------------------------------------------------------------------------------------
512 512
513 513
514 514
515 515
516 Auto Zone 12,000 9/30/01 Coast to Coast Hardware 8,000 12/31/01 516
- ------------------------------------------------------------------------------------------------------------------------------------
517 517
518 BOCES 4,575 6/30/02 Louis Ferrari Enterprises, Inc. 4,404 10/31/99 518
519 519
520 520
521 521
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
Control
No. Property Name Address
==========================================================================================================================
<S> <C> <C>
522 Warehouse Specialists - 1097 Ehlers Road 1097 Ehlers Road
523 Cedars St. Paul Apts. 1276 Wilson Avenue
524 McClintock Office Plaza 4700 S. McClintock Drive
525 Galaxy Shopping Center 2300 Planet Avenue
526 Crestwood Station Shopping Center Kentucky Highway 146
- --------------------------------------------------------------------------------------------------------------------------
527 Village Pines 25 South Lincoln Ave.
528 395-435 East O'Keefe Street 395-435 East O'Keefe Street
529 Price Savers Center 2049 West Broadway Road
530 Indian Village Shopping Center SEC of Indian School Road and 16th Street
531 Caledon Wood Professional Park Pelham Road
- --------------------------------------------------------------------------------------------------------------------------
532 4445 West 16th Street 4445 W. 16th Avenue
533 6 Fortune Drive 6 Fortune Drive
534 Fairmount Apartments 345-57 W. Johnson Streets
535 Palms Apartments 11007- Palms Blvd
536 Georgetown Village Apartments 1421 Reidville Road
- --------------------------------------------------------------------------------------------------------------------------
537 336 Washington Street (Boston Private) 336 Washington Street
538 CVS Tipton 711 East Jefferson St
539 State Farm Cranford 70 Myrtle Street
540 La Jolla Court Apartments 1322 North La Jolla Boulevard
541 CVS York 820 Edgewood Road
- --------------------------------------------------------------------------------------------------------------------------
542 Hodges Warehouse (Hodges II) 800 South Madison Avenue
543 Kling Street Apartments 11922 Kling Street
544 Eckerd Drug Store (Camden) SWC of DeKalb Street and Campbell Street
545 CVS Drug Store (Mableton) 5846-5856 Mableton Parkway
546 CVS Rockville NWC US 36 & SR 41
- --------------------------------------------------------------------------------------------------------------------------
547 CVS Edinburgh NEC US 31 & Eisenhower Rd
548 Fry's Greenfield Plaza NEC Greenfield Road and University Drive
549 Target Center 15329 Palmdale Blvd.
550 CVS Greece 3750 Mt. Read Boulevard
551 Ames Plaza (Amenia) Route 22
- --------------------------------------------------------------------------------------------------------------------------
552 North Creek Townhomes 515- 112th ST. S.E.
553 Hilltop Village Shopping Center U.S. Highway 158
554 Friendly Square Shopping Center 11651 West 64th Avenue
555 Eckerd Oldsmar 3771 Tampa Road
556 Henderson Mall 675 Mall Ring Circle
- --------------------------------------------------------------------------------------------------------------------------
557 Anchor Self Storage - Glendora 700 E. Acosta
558 8614 Burton Way Apts. 8614 Burton Way
559 Four Industrial Buildings (Great S.W. Industrial) Various
560 Spa Business Center 145-155 East 6100 South
561 Warehouse Specialists - Harrison Street 2440 Harrison Street
- --------------------------------------------------------------------------------------------------------------------------
562 Port Jefferson Medical Park 5380 Nesconset Highway
563 Ashcroft Industrial Park 7313-7399 Ashcroft
564 8586-8588 Potter Park Drive (Palmer Ranch) 8586-8588 Potter Park Drive
565 New Hampshire Apartments 345 South New Hampshire St.
566 Villa Fontana Apartments 7540 S.W. 59th Court
- --------------------------------------------------------------------------------------------------------------------------
567 Briarcliff 4314 Commomwealth Ave, A-1
568 Norton Plaza Shopping Center SEQ Park Avenue and Coeburn Avenue
569 Duna Vista Mobile Home Park 2400 Cienega
570 Calvert Apartments 11434-11450 Calvert Street
571 177 E. Evelyn Avenue 177 E. Evelyn Avenue
- --------------------------------------------------------------------------------------------------------------------------
572 Oakland State Garage 401 27Th Street
573 IHOP Kannapolis 800 Cloverleaf Plaza
574 Park Rochester Apartments 11425 Rochester Avenue
575 West Town Professional Center 21675 Longview Drive
576 CVS Aiken Whiskey Rd & Shannon Lane
- --------------------------------------------------------------------------------------------------------------------------
577 Garage Loft Apartments 113 N.W. 13th Street
578 Rite-Aid Pharmacy (Waynesburg) 8619 Waynesburg Drive
579 Forest Glen 2800-2875 Forest Glen Road
580 Revco Drug Store 2939 The Plaza Road
581 Rite Aid Pharmacey (Hogansville) 100 South Highway 29
- --------------------------------------------------------------------------------------------------------------------------
582 Revco Pharmacy (Oak Ridge) 1287 Oak Ridge Turnpike
583 Imperial Plaza Office Building 1129 Watertower Lane
584 Overlook Court 4620-40 Richmond Road
585 10051 Pasadena Avenue 10051 Pasadena Avenue
586 Clifford Pacific Business Park 20382 & 20412 Barents Sea Circle
- --------------------------------------------------------------------------------------------------------------------------
587 Glynbrook Estates 3642 Glynbrook Avenue
588 Cypress Winds 2105 Cleary
589 66 West 84th Street 66 West 84th Street
590 Canon Perdido 433 E. Canon Perdido Street
591 Panorama Medical Arts Building 8215 Van Nuys Blvd
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial
No. City State Code Groups Balance ($) Balance ($) Balance Pool Balance
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
522 Menasha WI 54956 Group H $ 1,775,000 $ 1,764,555.20 0.05% 94.43%
523 St. Paul MN 55106 1,760,000 1,757,481.94 0.05 94.48
524 Tempe AZ 85282 1,750,000 1,748,704.62 0.05 94.53
525 Salina KS 67401 1,750,000 1,745,149.43 0.05 94.58
526 Crestwood KY 40014 Group F 1,750,000 1,744,600.57 0.05 94.63
- ------------------------------------------------------------------------------------------------------------------------------------
527 Orchard Park NY 14127 1,746,325 1,742,848.98 0.05 94.69
528 East Palo Alto CA 94303 1,746,000 1,741,530.67 0.05 94.74
529 Mesa AZ 85202 1,725,000 1,722,787.60 0.05 94.78
530 Phoenix AZ 85016 1,725,000 1,708,262.64 0.05 94.83
531 Greenville SC 29615 1,710,000 1,705,674.66 0.05 94.88
- ------------------------------------------------------------------------------------------------------------------------------------
532 Hialeah FL 33012 1,698,201 1,698,200.81 0.05 94.93
533 Billerica MA 01821 1,700,000 1,697,966.99 0.05 94.98
534 Philadelphia PA 19144 1,700,000 1,697,942.60 0.05 95.03
535 Los Angeles CA 90034 1,700,000 1,697,751.38 0.05 95.08
536 Spartanburg SC 29306 1,700,000 1,697,602.64 0.05 95.13
- ------------------------------------------------------------------------------------------------------------------------------------
537 Wellesley MA 02181 1,700,000 1,697,590.85 0.05 95.18
538 Tipton IN 46072 1,678,241 1,668,582.84 0.05 95.22
539 Cranford NJ 07016 1,706,438 1,666,978.73 0.05 95.27
540 Goodyear AZ 85338 1,660,000 1,652,187.67 0.05 95.32
541 York PA 17402 1,652,486 1,645,957.00 0.05 95.37
- ------------------------------------------------------------------------------------------------------------------------------------
542 Okmulgee OK 74447 Group K 1,650,000 1,645,107.98 0.05 95.41
543 Los Angeles CA 91607 1,640,000 1,635,711.37 0.05 95.46
544 Camden SC 29020 1,640,000 1,631,475.16 0.05 95.51
545 Mableton GA 30059 1,610,000 1,605,822.34 0.05 95.55
546 Rockville IN 47872 1,613,847 1,604,207.35 0.05 95.60
- ------------------------------------------------------------------------------------------------------------------------------------
547 Edinburgh IN 46124 1,609,064 1,599,803.95 0.05 95.65
548 Mesa AZ 85205 Group J 1,600,000 1,597,884.71 0.05 95.69
549 Victorville CA 92392 1,600,000 1,596,484.25 0.05 95.74
550 Greece NY 14616 1,599,730 1,595,748.59 0.05 95.78
551 Amenia NY 12501 1,600,000 1,595,195.82 0.05 95.83
- ------------------------------------------------------------------------------------------------------------------------------------
552 Everett WA 98208 1,600,000 1,594,881.62 0.05 95.88
553 Oxford NC 27565 1,597,530 1,594,743.67 0.05 95.92
554 Arvada CO 80004 1,590,000 1,588,764.57 0.05 95.97
555 Oldsmar FL 34677 1,604,801 1,587,542.88 0.05 96.01
556 Henderson NV 89014 1,575,000 1,575,000.00 0.05 96.06
- ------------------------------------------------------------------------------------------------------------------------------------
557 Glendora CA 91740 1,560,000 1,556,622.29 0.04 96.10
558 Los Angeles CA 90048 1,550,000 1,548,751.88 0.04 96.15
559 Ft. Worth TX 75224 1,550,000 1,546,386.62 0.04 96.19
560 Murray UT 84107 Group I 1,550,000 1,545,038.11 0.04 96.24
561 Neenah WI 54956 Group H 1,550,000 1,540,879.18 0.04 96.28
- ------------------------------------------------------------------------------------------------------------------------------------
562 Port Jefferson Station NY 11776 1,525,000 1,520,687.32 0.04 96.33
563 Houston TX 77081 1,520,000 1,515,445.10 0.04 96.37
564 Sarasota FL 34238 1,500,000 1,498,880.08 0.04 96.41
565 Los Angeles CA 90020 1,500,000 1,498,839.13 0.04 96.46
566 South Miami FL 33143 1,500,000 1,496,067.38 0.04 96.50
- ------------------------------------------------------------------------------------------------------------------------------------
567 Charlotte NC 28205 1,500,000 1,493,242.99 0.04 96.54
568 Norton VA 24273 1,496,513 1,492,989.06 0.04 96.58
569 Oceano CA 93445 1,500,000 1,486,040.28 0.04 96.63
570 North Hollywood CA 91606 1,475,000 1,470,406.50 0.04 96.67
571 Mountain View CA 94041 1,470,000 1,467,025.62 0.04 96.71
- ------------------------------------------------------------------------------------------------------------------------------------
572 Oakland CA 94612 1,475,000 1,462,085.02 0.04 96.75
573 Kannapolis NC 28083 1,458,706 1,457,928.76 0.04 96.80
574 Los Angeles CA 90025 1,456,000 1,453,916.87 0.04 96.84
575 Brookfield WI 53205 1,450,000 1,446,464.48 0.04 96.88
576 Aiken SC 29803 1,438,882 1,436,118.62 0.04 96.92
- ------------------------------------------------------------------------------------------------------------------------------------
577 Oklahoma City OK 73103 1,440,000 1,435,402.50 0.04 96.96
578 Sandy Township OH 44688 1,428,741 1,426,496.18 0.04 97.00
579 Baltimore MD 21216 1,425,000 1,421,618.18 0.04 97.04
580 Charlotte NC 28205 1,424,000 1,420,431.88 0.04 97.08
581 Hogansville GA 30230 1,428,000 1,413,906.15 0.04 97.13
- ------------------------------------------------------------------------------------------------------------------------------------
582 Oak Ridge TN 19147 1,415,000 1,413,228.06 0.04 97.17
583 West Carrollton OH 45449 1,400,000 1,398,946.34 0.04 97.21
584 Warrensville Heights OH 44128 1,400,000 1,398,927.25 0.04 97.25
585 Cupertino CA 95014 1,400,000 1,397,163.99 0.04 97.29
586 Lake Forest CA 92630 1,400,000 1,396,259.85 0.04 97.33
- ------------------------------------------------------------------------------------------------------------------------------------
587 Keizer OR 97303 1,400,000 1,395,038.52 0.04 97.37
588 Metairie LA 70002 1,392,000 1,390,838.57 0.04 97.41
589 New York NY 10024 1,380,000 1,376,574.41 0.04 97.45
590 Santa Barbara CA 93101 1,375,000 1,373,982.61 0.04 97.49
591 Panorama City CA 91402 1,370,000 1,365,634.97 0.04 97.53
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Interest Original Remaining
Control Mortgage Administrative Accrual Amortization Interest-Only Interest-Only
No. Rate (%) Cost Rate (%) Method Type Period (Mos.) Period (Mos.)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
522 7.4375% 0.0962% Actual/360 Fully Amortizing 0 0
523 7.0510 0.0962 Actual/360 Amortizing Balloon 0 0
524 7.5130 0.0962 Actual/360 Amortizing Balloon 0 0
525 7.8900 0.1712 Actual/360 Amortizing (ARD) 0 0
526 7.3530 0.0962 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
527 7.3800 0.1462 Actual/360 Amortizing Balloon 0 0
528 7.2500 0.0962 Actual/360 Amortizing Balloon 0 0
529 7.4900 0.1462 Actual/360 Amortizing (ARD) 0 0
530 7.6400 0.1712 30/360 Fully Amortizing 0 0
531 7.3200 0.1562 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
532 7.7400 0.0962 Actual/360 Amortizing Balloon 0 0
533 7.2000 0.0962 Actual/360 Amortizing Balloon 0 0
534 7.1250 0.0962 Actual/360 Amortizing Balloon 0 0
535 7.3680 0.0962 Actual/360 Amortizing Balloon 0 0
536 7.1100 0.1462 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
537 7.0900 0.1462 Actual/360 Amortizing (ARD) 0 0
538 7.2500 0.0962 30/360 Fully Amortizing 0 0
539 7.5625 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
540 7.3600 0.0962 Actual/360 Amortizing Balloon 0 0
541 6.8500 0.0962 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
542 7.7100 0.0962 30/360 Fully Amortizing 0 0
543 7.1250 0.0962 Actual/360 Amortizing Balloon 0 0
544 7.4200 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
545 6.9700 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
546 6.9375 0.0962 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
547 7.2500 0.0962 30/360 Fully Amortizing 0 0
548 7.3700 0.1462 Actual/360 Amortizing Balloon 0 0
549 7.2010 0.0962 Actual/360 Amortizing Balloon 0 0
550 7.0000 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
551 7.4900 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
552 7.1700 0.0962 Actual/360 Amortizing Balloon 0 0
553 7.5200 0.1562 Actual/360 Amortizing (ARD) 0 0
554 7.2700 0.1462 Actual/360 Amortizing Balloon 0 0
555 7.3000 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
556 7.2100 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
557 7.2800 0.0962 Actual/360 Amortizing Balloon 0 0
558 7.0900 0.0962 Actual/360 Amortizing Balloon 0 0
559 7.3800 0.0962 30/360 Amortizing Balloon 0 0
560 7.9590 0.0962 Actual/360 Amortizing Balloon 0 0
561 7.4375 0.0962 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
562 7.7900 0.0962 Actual/360 Amortizing (ARD) 0 0
563 7.5000 0.1462 Actual/360 Amortizing (ARD) 0 0
564 7.4700 0.1462 Actual/360 Amortizing Balloon 0 0
565 7.2900 0.0962 Actual/360 Amortizing Balloon 0 0
566 7.1100 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
567 7.6350 0.0962 Actual/360 Fully Amortizing 0 0
568 7.7400 0.1462 Actual/360 Amortizing Balloon 0 0
569 7.2630 0.0962 30/360 Fully Amortizing 0 0
570 7.3060 0.0962 Actual/360 Amortizing Balloon 0 0
571 7.6380 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
572 7.6540 0.0962 Actual/360 Amortizing Balloon 0 0
573 7.8750 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
574 7.0510 0.0962 Actual/360 Amortizing Balloon 0 0
575 7.5350 0.0962 Actual/360 Amortizing Balloon 0 0
576 7.1250 0.0962 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
577 7.1800 0.0962 Actual/360 Amortizing (ARD) 0 0
578 7.2300 0.0962 30/360 Amortizing Balloon 0 0
579 7.2100 0.0962 30/360 Amortizing Balloon 0 0
580 7.3750 0.0962 Actual/360 Amortizing Balloon 0 0
581 7.5400 0.0962 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
582 7.3400 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
583 7.4300 0.1462 Actual/360 Amortizing (ARD) 0 0
584 7.3400 0.1462 Actual/360 Amortizing Balloon 0 0
585 7.6320 0.0962 Actual/360 Amortizing Balloon 0 0
586 7.0000 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
587 7.5000 0.0962 Actual/360 Amortizing Balloon 0 0
588 6.9100 0.0962 Actual/360 Amortizing Balloon 0 0
589 7.4300 0.0962 Actual/360 Amortizing (ARD) 0 0
590 7.5150 0.0962 Actual/360 Amortizing Balloon 0 0
591 7.9800 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Original Remaining
Term to Term to Original Remaining
Control Maturity Maturity Amortization Amortization Origination Maturity Balloon
No. (Mos.) (Mos.) Term (Mos.) Term (Mos.) Date or ARD Balance ($) Property Type
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
522 180 178 180 178 2/9/98 3/1/13 $ 37,508 Industrial
523 120 118 360 358 2/27/98 3/1/08 1,537,568 Multifamily
524 120 119 360 359 3/11/98 4/1/08 1,546,923 Office
525 120 116 360 356 12/23/97 1/1/08 1,560,367 Retail - Unanchored
526 120 116 360 356 12/31/97 1/1/08 1,539,772 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
527 120 116 300 296 12/23/97 1/1/08 1,408,020 Multifamily
528 120 117 360 357 1/22/98 2/1/08 1,531,967 Multifamily
529 240 238 360 358 2/18/98 3/1/18 1,095,413 Retail - Unanchored
530 204 200 204 200 12/16/97 1/1/15 - Retail - Unanchored
531 120 117 360 357 1/8/98 2/1/08 1,503,061 Office
- -------------------------------------------------------------------------------------------------------------------------------
532 118 118 358 358 2/3/98 3/1/08 1,511,242 Office
533 120 119 300 299 3/19/98 4/1/08 1,368,654 Office
534 120 119 300 299 3/19/98 4/1/08 1,365,493 Multifamily
535 120 118 360 358 2/10/98 3/1/08 1,497,449 Multifamily
536 120 118 360 358 2/27/98 3/1/08 1,487,463 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
537 180 178 360 358 2/10/98 3/1/13 1,306,748 Retail - Unanchored
538 237 234 237 234 1/7/98 11/1/17 - CTL
539 120 115 120 115 8/15/97 12/1/07 - CTL
540 84 80 300 296 12/11/97 1/1/05 1,463,488 Multifamily
541 239 237 239 237 2/13/98 2/1/18 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
542 180 179 180 179 3/13/98 4/1/13 - Industrial
543 120 117 360 357 1/30/98 2/1/08 1,434,316 Multifamily
544 238 234 238 234 12/30/97 11/1/17 - CTL
545 238 236 238 236 2/12/98 1/1/18 - CTL
546 237 234 237 234 1/12/98 11/1/17 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
547 237 234 237 234 1/7/98 11/1/17 - CTL
548 120 118 360 358 2/6/98 3/1/08 1,409,436 Retail - Unanchored
549 120 118 300 298 2/26/98 3/1/08 1,288,409 Retail - Anchored
550 238 236 238 236 2/25/98 1/1/18 - CTL
551 120 116 360 356 12/31/97 1/1/08 1,412,674 Retail - Anchored
- -------------------------------------------------------------------------------------------------------------------------------
552 120 116 360 356 12/31/97 1/1/08 1,401,185 Multifamily
553 117 116 298 297 3/23/98 1/1/08 1,303,527 Retail - Anchored
554 120 119 360 359 3/27/98 4/1/08 1,396,815 Retail - Unanchored
555 230 224 230 224 10/24/97 1/1/17 - CTL
556 120 120 252 252 4/3/98 5/1/08 1,126,958 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
557 120 118 300 298 2/13/98 3/1/08 1,259,247 Self Storage
558 120 119 360 359 3/25/98 4/1/08 1,355,306 Multifamily
559 120 118 300 298 2/4/98 3/1/08 1,231,642 Industrial
560 120 115 360 355 11/25/97 12/1/07 1,384,587 Office
561 180 178 180 178 2/9/98 3/1/13 32,753 Industrial
- -------------------------------------------------------------------------------------------------------------------------------
562 120 116 360 356 12/15/97 1/1/08 1,356,466 Office
563 120 116 360 356 12/19/97 1/1/08 1,342,378 Industrial
564 120 119 360 359 3/4/98 4/1/08 1,324,498 Office
565 84 83 360 359 3/5/98 4/1/05 1,387,500 Multifamily
566 120 117 360 357 1/30/98 2/1/08 1,311,361 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
567 300 296 300 296 12/23/97 1/1/23 98,025 Multifamily
568 120 117 360 357 1/30/98 2/1/08 1,329,269 Retail - Anchored
569 180 177 180 177 1/5/98 2/1/13 - Mobile Home Park
570 120 116 360 356 12/31/97 1/1/08 1,296,252 Multifamily
571 120 118 300 298 2/18/98 3/1/08 1,199,482 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
572 120 115 240 235 12/1/97 12/1/07 1,027,554 Industrial
573 293 292 293 292 3/24/98 9/1/22 - CTL
574 120 118 360 358 2/9/98 3/1/08 1,271,988 Multifamily
575 120 117 360 357 1/23/98 2/1/08 1,281,462 Office
576 238 237 238 237 3/31/98 2/1/18 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
577 120 116 360 356 12/23/97 1/1/08 1,261,393 Multifamily
578 212 211 263 262 3/5/98 12/1/15 470,001 CTL
579 120 117 360 357 1/12/98 2/1/08 1,228,800 Multifamily
580 120 117 360 357 1/12/98 2/1/08 1,253,433 Retail - Anchored
581 230 225 230 225 11/21/97 2/1/17 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
582 208 207 208 207 3/31/98 8/1/15 - CTL
583 120 119 360 359 3/6/98 4/1/08 1,234,946 Office
584 120 119 360 359 3/13/98 4/1/08 1,232,116 Office
585 120 118 300 298 2/12/98 3/1/08 1,142,159 Office
586 84 81 360 357 1/12/98 2/1/05 1,288,286 Industrial
- -------------------------------------------------------------------------------------------------------------------------------
587 120 115 360 355 11/26/97 12/1/07 1,236,608 Multifamily
588 120 119 360 359 3/12/98 4/1/08 1,211,347 Multifamily
589 120 117 360 357 1/29/98 2/1/08 1,216,392 Retail - Unanchored
590 120 119 360 359 3/2/98 4/1/08 1,215,500 Office
591 120 115 360 355 11/13/97 12/1/07 1,224,410 Office
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Annual
Control Debt Net Appraised
No. Prepayment Provisions Service ($) Cash Flow ($) DSCR (x) Value ($)
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
522 L(6),D(8.75),O(.25) $ 196,698 $ 302,436 1.54x $ 3,300,000
523 L(4),D(5.83),O(.17) 141,236 212,624 1.51 2,250,000
524 L(5),D(4.83),O(.17) 147,022 196,528 1.34 2,350,000
525 L(4),YM1%(5.75),O(.25) 152,483 213,814 1.40 2,400,000
526 L(4),D(5.75),O(.25) 144,727 267,534 1.85 4,500,000
- ------------------------------------------------------------------------------------------------------------------------------
527 L(4),D(5.75),O(.25) 153,553 192,961 1.26 2,200,000
528 L(4),D(6) 142,930 181,222 1.27 2,400,000
529 L(12),YM1%(7.75),O(.25) 144,596 199,238 1.38 2,300,000
530 L(7),YM1%(9.5),O(.5) 181,525 262,851 1.45 2,300,000
531 L(4),D(5.75),O(.25) 140,959 189,385 1.34 2,280,000
- ------------------------------------------------------------------------------------------------------------------------------
532 L(3.83),D(5.5),O(.5) 146,060 207,356 1.42 2,800,000
533 L(4),D(5.67),O(.33) 146,796 200,056 1.36 2,800,000
534 L(4),D(6) 145,814 184,325 1.26 2,200,000
535 L(4),D(5.83),O(.17) 140,800 189,296 1.34 2,270,000
536 L(4),D(5.75),O(.25) 137,232 171,666 1.25 2,160,000
- ------------------------------------------------------------------------------------------------------------------------------
537 L(7),YM1%(7.75),O(.25) 136,957 186,542 1.36 2,350,000
538 L(8),YM1%(11.25),O(.5) 160,073 164,875 NAP 1,750,000
539 L(4),YM1%(5.75),O(.25) Step Loan 223,233 NAP 2,100,000
540 L(3),D(3.75),O(.25) 145,398 194,101 1.33 2,215,000
541 L(8),YM1%(11.91) 152,258 152,715 NAP 1,675,000
- ------------------------------------------------------------------------------------------------------------------------------
542 L(7),D(7.75),O(.25) 185,919 239,665 1.29 2,500,000
543 L(4),D(5.83),O(.17) 132,588 169,447 1.28 2,050,000
544 L(10),D(9.83) Step Loan 153,829 NAP 1,650,000
545 L(10),D(9.83) Step Loan 149,344 NAP 1,630,000
546 L(8),YM1%(11.25),O(.5) 150,297 154,806 NAP 1,620,000
- ------------------------------------------------------------------------------------------------------------------------------
547 L(8),YM1%(11.25),O(.5) 153,474 158,079 NAP 1,650,000
548 L(4),YM1%(5.75),O(.25) 132,544 218,413 1.65 2,500,000
549 L(4),D(5.83),O(.17) 138,173 215,650 1.56 2,140,000
550 L(8),D(11.833) Step Loan 148,838 NAP 1,600,000
551 L(3),YM1%(6.5),O(.5) 134,118 184,472 1.38 2,500,000
- ------------------------------------------------------------------------------------------------------------------------------
552 L(2.33),D(7.417),O(.25) 129,938 166,893 1.28 2,200,000
553 L(3.75),D(5.75),O(.25) 142,322 190,318 1.34 2,400,000
554 L(3),YM1%(6.5),O(.5) 130,418 177,246 1.36 2,300,000
555 L(8),YM,1%(10.917),O(.25) Step Loan 202,535 NAP 2,335,000
556 L(4),D(5.75),O(.25) 145,774 186,481 1.28 2,325,000
- ------------------------------------------------------------------------------------------------------------------------------
557 L(4),D(5.75),O(.25) 135,672 175,821 1.30 2,375,000
558 L(4),D(5.75),O(.25) 124,872 163,041 1.31 2,200,000
559 L(4),D(5.5),O(.5) 136,004 226,901 1.67 3,500,000
560 L(4),D(5.83),O(.17) 135,949 181,333 1.33 2,075,000
561 L(6),D(8.75),O(.25) 171,764 251,123 1.46 2,400,000
- ------------------------------------------------------------------------------------------------------------------------------
562 L(7),D(2.75),O(.25) 131,610 166,251 1.26 2,450,000
563 L(4),D(5.75),O(.25) 127,537 166,248 1.30 1,950,000
564 L(5),D(4.75),O(.25) 125,489 162,001 1.29 2,000,000
565 L(2.083),D(4.417),O(.5) 123,280 158,413 1.28 2,000,000
566 L(4),D(5.5),O(.5) 121,087 168,165 1.39 2,000,000
- ------------------------------------------------------------------------------------------------------------------------------
567 L(2.33),D(22.67) 134,603 193,013 1.43 2,200,000
568 L(4),D(5.5),O(.5) 128,530 160,664 1.25 2,150,000
569 L(4),D(10.83),O(.17) 164,447 186,844 1.14 2,700,000
570 L(4),D(5.83),O(.17) 121,418 181,687 1.50 1,840,000
571 L(4),D(5.83),O(.17) 131,946 202,365 1.53 2,100,000
- ------------------------------------------------------------------------------------------------------------------------------
572 L(4),D(5.83),O(.17) 144,261 205,214 1.42 1,950,000
573 L(8),D(16.417) Step Loan 136,620 NAP 1,500,000
574 L(4),D(5.67),O(.33) 116,841 179,408 1.54 2,570,000
575 L(4),D(5.83),O(.17) 122,081 181,065 1.48 2,000,000
576 L(3),D(16.833) 135,681 168,244 NAP 1,930,000
- ------------------------------------------------------------------------------------------------------------------------------
577 L(4),D(5.5),O(.5) 117,061 164,311 1.40 1,800,000
578 L(8),YM1%(9.67) 130,236 134,571 NAP 1,465,000
579 L(4),YM1%(4),O(2) 116,189 160,333 1.38 1,900,000
580 L(4),D(6) 118,023 152,219 1.29 1,770,000
581 L(10),D(9.17) 141,074 145,479 NAP 1,610,000
- ------------------------------------------------------------------------------------------------------------------------------
582 L(10),D(7.33) Step Loan 131,130 NAP 1,600,000
583 L(4),D(5.5),O(.5) 116,664 143,108 1.23 1,750,000
584 L(5),D(4.75),O(.25) 115,633 147,428 1.27 1,930,000
585 L(4),D(5.83),O(.17) 125,597 172,877 1.38 2,150,000
586 L(3),D(3.83),O(.17) 111,771 152,088 1.36 1,936,000
- ------------------------------------------------------------------------------------------------------------------------------
587 L(4),YM1%(5.75),O(.25) 117,468 153,015 1.30 1,900,000
588 L(2),D(7.50),O(.50) 110,124 141,608 1.29 1,740,000
589 L(5),D(4.75),O(.25) 114,997 152,895 1.33 2,000,000
590 L(4),D(5.83),O(.17) 115,540 149,614 1.29 2,100,000
591 L(4),D(5.83),O(.17) 120,402 163,337 1.36 1,750,000
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten
Hospitality Sq. Ft., Loan per
Cut-off Scheduled Average Units Sq. Ft., Units
Control Appraisal Date Maturity Date Daily Year Year Bed, Pad Bed, Pad Occupancy
No. Year LTV (%) LTV (%) Rate ($) Built Renovated or Room or Room ($) Percentage (%)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
522 1997 53.5% 1.1% 1984 N/A 157,898 Sq. Ft. $ 11.24 100.0%
523 1997 78.1 68.3 1970 N/A 102 Units 17,254.90 99.0
524 1998 74.4 65.8 1986 N/A 23,053 Sq. Ft. 75.91 100.0
525 1997 72.7 65.0 1987 N/A 32,930 Sq. Ft. 53.14 90.0
526 1997 38.8 34.2 1982 N/A 156,684 Sq. Ft. 11.17 94.5
- --------------------------------------------------------------------------------------------------------------------------------
527 1997 79.2 64.0 1900's 1997 33 Units 52,918.94 91.2
528 1997 72.6 63.8 1950 1994 70 Units 24,942.86 97.0
529 1998 74.9 47.6 1976,96 N/A 45,158 Sq. Ft. 38.20 100.0
530 1997 74.3 0.0 1974 N/A 64,278 Sq. Ft. 26.84 94.7
531 1997 74.8 65.9 1996,1997 N/A 15,682 Sq. Ft. 109.04 91.7
- --------------------------------------------------------------------------------------------------------------------------------
532 1997 60.7 54.0 1984 N/A 34,177 Sq. Ft. 49.69 100.0
533 1998 60.6 48.9 1987 N/A 26,500 Sq. Ft. 64.15 92.0
534 1997 77.2 62.1 1965 N/A 67 Units 25,373.13 89.6
535 1997 74.8 66.0 1971 1993 30 Units 56,666.67 100.0
536 1997 78.6 68.9 1964 N/A 75 Units 22,666.67 98.7
- --------------------------------------------------------------------------------------------------------------------------------
537 1997 72.2 55.6 1880 1982 6,667 Sq. Ft. 254.99 100.0
538 1997 NAP 0.0 1997 N/A 10,722 Sq. Ft. 156.52 100.0
539 1997 NAP 0.0 1960 1997 21,152 Sq. Ft. 80.68 100.0
540 1997 74.6 66.1 1964 N/A 69 Units 24,057.97 98.6
541 1997 NAP 0.0 1998 N/A 10,722 Sq. Ft. 154.12 100.0
- --------------------------------------------------------------------------------------------------------------------------------
542 1998 65.8 0.0 1929,56,65,68 N/A 344,100 Sq. Ft. 4.80 100.0
543 1997 79.8 70.0 1964 N/A 36 Units 45,555.56 100.0
544 1997 NAP 0.0 1997 N/A 10,908 Sq. Ft. 150.35 100.0
545 1997 NAP 0.0 1997 N/A 10,125 Sq. Ft. 159.01 100.0
546 1997 NAP 0.0 1997 N/A 10,722 Sq. Ft. 150.52 100.0
- --------------------------------------------------------------------------------------------------------------------------------
547 1997 NAP 0.0 1997 N/A 10,722 Sq. Ft. 150.07 100.0
548 1997 63.9 56.4 1987 N/A 39,043 Sq. Ft. 40.98 100.0
549 1997 74.6 60.2 1983 1995 23,300 Sq. Ft. 68.67 100.0
550 1997 NAP 0.0 1997 N/A 10,125 Sq. Ft. 158.00 100.0
551 1997 63.8 56.5 1975 1985 85,652 Sq. Ft. 18.68 91.6
- --------------------------------------------------------------------------------------------------------------------------------
552 1997 72.5 63.7 1989 N/A 36 Units 44,444.44 100.0
553 1997 66.5 54.3 1980 N/A 64,631 Sq. Ft. 24.72 87.0
554 1997 69.1 60.7 1980 N/A 57,220 Sq. Ft. 27.79 98.6
555 1997 NAP 0.0 1997 N/A 10,908 Sq. Ft. 147.12 100.0
556 1997 67.7 48.5 1997 N/A 7,564 Sq. Ft. 208.22 100.0
- --------------------------------------------------------------------------------------------------------------------------------
557 1997 65.5 53.0 1977 N/A 416 Units 3,750.00 91.0
558 1998 70.4 61.6 1989 N/A 18 Units 86,111.11 100.0
559 1998 44.2 35.2 1968,78,80 N/A 190,436 Sq. Ft. 8.14 100.0
560 1997 74.5 66.7 1972 1996 17,985 Sq. Ft. 86.18 100.0
561 1998 64.2 1.4 1965,70,74,89 N/A 171,250 Sq. Ft. 9.05 100.0
- --------------------------------------------------------------------------------------------------------------------------------
562 1997 62.1 55.4 1975 N/A 40,076 Sq. Ft. 38.05 79.9
563 1997 77.7 68.8 1965 N/A 98,050 Sq. Ft. 15.50 97.5
564 1998 74.9 66.2 1997 N/A 15,884 Sq. Ft. 94.43 100.0
565 1997 74.9 69.4 1972 N/A 66 Units 22,727.27 95.5
566 1997 74.8 65.6 1966 N/A 40 Units 37,500.00 94.7
- --------------------------------------------------------------------------------------------------------------------------------
567 1997 67.9 4.5 1964 N/A 84 Units 17,857.14 91.7
568 1997 69.4 61.8 1976-1977 1980 70,575 Sq. Ft. 21.20 86.1
569 1997 55.0 0.0 1977 N/A 105 Spaces 14,285.71 99.0
570 1997 79.9 70.5 1977 N/A 80 Units 18,437.50 100.0
571 1997 69.9 57.1 1957 1989 19,415 Sq. Ft. 75.71 100.0
- --------------------------------------------------------------------------------------------------------------------------------
572 1997 75.0 52.7 1957 1997 28,800 Sq. Ft. 51.22 100.0
573 1997 NAP 0.0 1997 N/A 4,950 Sq. Ft. 294.69 100.0
574 1997 56.6 49.5 1973 N/A 23 Units 63,304.35 100.0
575 1997 72.3 64.1 1995 N/A 16,362 Sq. Ft. 88.62 100.0
576 1998 NAP 0.0 1998 N/A 10,125 Sq. Ft. 142.11 100.0
- --------------------------------------------------------------------------------------------------------------------------------
577 1997 79.7 70.1 1929 1995 24 Units 60,000.00 96.0
578 1998 NAP 32.1 1997 N/A 10,363 Sq. Ft. 137.87 100.0
579 1997 74.8 64.7 1972 1997 64 Units 22,265.63 93.8
580 1997 80.3 70.8 1997 N/A 10,640 Sq. Ft. 133.83 100.0
581 1997 NAP 0.0 1997 N/A 11,325 Sq. Ft. 126.09 100.0
- --------------------------------------------------------------------------------------------------------------------------------
582 1997 NAP 0.0 1994 N/A 10,722 Sq. Ft. 131.97 100.0
583 1997 79.9 70.6 1970 N/A 23,244 Sq. Ft. 60.23 94.9
584 1998 72.5 63.8 1976 N/A 44,553 Sq. Ft. 31.42 84.0
585 1998 65.0 53.1 1986 N/A 11,514 Sq. Ft. 121.59 100.0
586 1997 72.1 66.5 1997 N/A 23,339 Sq. Ft. 59.99 100.0
- --------------------------------------------------------------------------------------------------------------------------------
587 1997 73.4 65.1 1978 N/A 35 Units 40,000.00 100.0
588 1998 79.9 69.6 1970 N/A 56 Units 24,857.14 98.2
589 1997 68.8 60.8 1900 N/A 3,340 Sq. Ft. 413.17 100.0
590 1998 65.4 57.9 1961 N/A 18,046 Sq. Ft. 76.19 100.0
591 1997 78.0 70.0 1957 1996 25,395 Sq. Ft. 53.95 96.0
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Tenant
------------------------------------------------------------------------------
Tenant
Control Rent Roll Underwriting Area Leased Lease
No. Date Reserves ($) per Tenant Name (Sq. Ft.) Exp Date
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
522 0 $0.05 Sq. Ft. Warehouse Specialists, Inc. 157,898 3/1/13
523 11/19/97 250.00 Unit
524 12/1/97 0.15 Sq. Ft. Norwest Mortgage 7,573 8/31/99
525 10/15/97 0.18 Sq. Ft. Copy Co. 3,250 11/30/00
526 12/1/97 0.20 Sq. Ft. Wal-Mart 45,570 5/16/03
- ------------------------------------------------------------------------------------------------------------------------------------
527 2/24/98 207.00 Unit
528 1/13/98 250.00 Unit
529 1/4/98 0.17 Sq. Ft. Savers 28,136 4/30/10
530 11/1/97 0.24 Sq. Ft. Pets Mart 26,514 9/9/00
531 12/3/97 0.15 Sq. Ft. Greenville Psych. PA 4,929 12/9/06
- ------------------------------------------------------------------------------------------------------------------------------------
532 10/31/97 0.20 Sq. Ft. USA Money Center 6,300 10/31/99
533 2/1/98 0.15 Sq. Ft. SAIC, Inc. 9,381 1/31/02
534 2/20/98 248.00 Unit
535 1/12/98 277.47 Unit
536 12/1/97 281.41 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
537 3/27/98 0.46 Sq. Ft. Boston Private Bank and Trust 6,667 11/30/12
538 5/1/98 0.15 Sq. Ft. Hook-SupeRx, Inc 10,722 11/30/17
539 5/1/98 0.50 Sq. Ft. State Farm Mutual Automobile Insurance Company 21,152 9/30/07
540 9/16/97 289.00 Unit
541 5/1/98 0.30 Sq. Ft. White Cross Stores, Inc. 10,722 2/28/18
- ------------------------------------------------------------------------------------------------------------------------------------
542 2/23/98 0.10 Sq. Ft. Port City Properties 344,100 5/1/13
543 11/25/97 155.44 Unit
544 5/1/98 0.25 Sq. Ft. Eckerd Corporation 10,908 12/13/17
545 5/1/98 0.25 Sq. Ft. CVS 10,125 1/31/18
546 5/1/98 0.15 Sq. Ft. Hook-SupeRx, Inc 10,722 12/31/17
- ------------------------------------------------------------------------------------------------------------------------------------
547 5/1/98 0.15 Sq. Ft. Hook-SupeRx, Inc 10,722 11/30/17
548 1/1/98 0.34 Sq. Ft. Furniture Depot 6,720 10/1/99
549 8/28/97 0.29 Sq. Ft. Quality Sleep Center 3,190 5/25/00
550 5/1/98 0.15 Sq. Ft. Mt. Read Street CVS, Inc. 10,125 1/31/18
551 9/25/97 0.21 Sq. Ft. Ames 48,000 1/31/06
- ------------------------------------------------------------------------------------------------------------------------------------
552 11/30/97 291.00 Unit
553 10/30/97 0.48 Sq. Ft. Food Lion 31,231 5/19/02
554 3/17/98 0.16 Sq. Ft. Circle Bingo, Inc. 14,066 6/30/03
555 5/1/98 - Sq. Ft. Eckerd Corporation 10,908 1/29/17
556 3/30/98 0.14 Sq. Ft. Wolf Camera 4,659 12/1/08
- ------------------------------------------------------------------------------------------------------------------------------------
557 3/5/98 12.50 Unit
558 3/23/98 218.61 Unit
559 2/2/98 0.15 Sq. Ft. Tandy Corporation 72,000 2/28/99
560 11/5/97 0.22 Sq. Ft. Department Of Corrections of Utah 11,718 11/30/01
561 0 0.07 Sq. Ft. Warehouse Specialists, Inc. 171,250 3/1/13
- ------------------------------------------------------------------------------------------------------------------------------------
562 7/16/97 0.38 Sq. Ft. St. Charles Hospital 3,975 3/31/00
563 12/11/97 0.21 Sq. Ft. Unique Arts of Houston 9,218 8/31/98
564 2/10/98 0.12 Sq. Ft. Kimley Horn and Associates, Inc. 8,384 5/31/07
565 10/9/97 295.59 Unit
566 12/4/97 418.28 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
567 11/10/97 313.00 Unit
568 2/17/98 0.15 Sq. Ft. Helig-Meyers 30,051 7/31/04
569 11/30/97 141.96 Space
570 8/20/97 299.32 Unit
571 1/23/98 0.31 Sq. Ft. M2 Collision Centers 19,415 6/30/02
- ------------------------------------------------------------------------------------------------------------------------------------
572 10/1/97 0.10 Sq. Ft. State Of California 28,800 5/31/08
573 5/1/98 - Sq. Ft. IHOP Properties, Inc. 4,950 9/30/22
574 12/22/97 288.00 Unit
575 12/15/97 0.04 Sq. Ft. Welman Architects, Inc. 5,536 12/1/00
576 5/1/98 - Sq. Ft. Revco Discount Drug Stores 10,125 2/28/18
- ------------------------------------------------------------------------------------------------------------------------------------
577 12/11/97 239.58 Unit
578 5/1/98 0.17 Sq. Ft. Rite-Aid of Pennsylvania, Inc. 10,363 12/15/15
579 1/12/98 225.00 Unit
580 8/15/97 0.10 Sq. Ft. The Revco Drug Store 10,640 8/14/17
581 5/1/98 0.24 Sq. Ft. Rite Aid of Georgia, Inc. 11,325 3/19/17
- ------------------------------------------------------------------------------------------------------------------------------------
582 5/1/98 0.25 Sq. Ft. Revco 10,722 8/31/15
583 11/10/97 0.15 Sq. Ft. Crabar Business Systems 4,800 6/30/99
584 2/25/98 0.15 Sq. Ft. Federal Process 5,975 6/30/03
585 11/30/98 0.19 Sq. Ft. Online Focus, Inc. 11,514 10/17/99
586 12/1/97 0.21 Sq. Ft. Forever Green Art 11,881 10/17/02
- ------------------------------------------------------------------------------------------------------------------------------------
587 10/1/97 220.00 Unit
588 12/22/97 233.00 Unit
589 1/29/98 0.10 Sq. Ft. Jeffrey Stein Hair Salon 1,650 10/31/08
590 9/15/97 0.24 Sq. Ft. City Commerce Bank 9,607 12/31/98
591 10/10/97 0.20 Sq. Ft. Nobel Medical Group 6,046 3/31/99
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2nd Largest Tenant 3rd Largest Tenant
--------------------------------------------------------- -------------------------------------------------------------
Tenant Tenant
Control Area Leased Lease Area Leased Lease Control
No. Tenant Name (Sq. Ft.) Exp Date Tenant Name (Sq. Ft.) Exp Date No.
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
522 522
523 523
524 Media Communications 3,952 12/31/99 Great American 3,102 6/30/00 524
525 Phillip Archer 2,650 5/31/99 Lite House Garden Cafe & Espresso 2,600 9/1/00 525
526 Winn-Dixie 25,600 9/2/01 Craig's Pharmacy 10,078 9/30/03 526
- ------------------------------------------------------------------------------------------------------------------------------------
527 527
528 528
529 Terri's 14,222 6/30/03 Econ Lube 2,800 8/31/10 529
530 Popular Stores 8,677 11/30/01 Pets Plus 4,483 7/31/00 530
531 Cothran Properties, LL 2,650 5/31/02 Dr. Hoffman 2,600 3/5/03 531
- ------------------------------------------------------------------------------------------------------------------------------------
532 Terrabank 5,262 5/30/07 Miguel Rebollar, MD 3,200 12/31/01 532
533 Joyce Chen, Inc. 4,404 4/30/00 Mint Technology 4,136 2/28/99 533
534 534
535 535
536 536
- ------------------------------------------------------------------------------------------------------------------------------------
537 537
538 538
539 539
540 540
541 541
- ------------------------------------------------------------------------------------------------------------------------------------
542 542
543 543
544 544
545 545
546 546
- ------------------------------------------------------------------------------------------------------------------------------------
547 547
548 Discount Card Outlet 4,960 6/30/99 Premier Childcare 3,900 11/30/04 548
549 Fashion Stop 2,700 4/30/02 Payless Shoe Store 2,700 7/31/06 549
550 550
551 Grand Union 20,020 1/10/02 Colonial Pharmacy 5,700 3/31/02 551
- ------------------------------------------------------------------------------------------------------------------------------------
552 552
553 Dollar General 7,200 11/14/02 Home Choice 5,000 11/30/02 553
554 Academy Child Development 8,299 8/14/99 Rocky Mountain 5,120 10/31/98 554
555 555
556 Baja Fresh Mexican Restaurant 2,905 12/1/06 556
- ------------------------------------------------------------------------------------------------------------------------------------
557 557
558 558
559 Buehler-Mayflower Storage 20,000 2/28/98 Burlington Northern Railroad 15,000 12/15/99 559
560 Rhino Grille 5,467 7/31/06 560
561 561
- ------------------------------------------------------------------------------------------------------------------------------------
562 Manufacturers Hanover 3,000 12/31/00 Drs. Kurtz, Dubrw & Bly 2,600 8/31/98 562
563 World Class Embroidery 4,400 10/31/99 B. Roman & Associates 4,047 3/31/99 563
564 Sarasota Realty 4,500 8/31/02 Palmer Ranch Enterprises 3,000 5/31/07 564
565 565
566 566
- ------------------------------------------------------------------------------------------------------------------------------------
567 567
568 Piggly Wiggly 28,208 2/3/02 Druthers 2,506 2/28/02 568
569 569
570 570
571 571
- ------------------------------------------------------------------------------------------------------------------------------------
572 572
573 573
574 574
575 Westown Dental 5,390 NAV 575
576 576
- ------------------------------------------------------------------------------------------------------------------------------------
577 577
578 578
579 579
580 N/A N/A 580
581 581
- ------------------------------------------------------------------------------------------------------------------------------------
582 582
583 Reynolds & Reynolds 3,653 3/31/02 Ohio Financial 2,745 7/31/00 583
584 North Coast Engineering 4,518 10/30/02 A Beverage Connection 4,231 12/31/98 584
585 585
586 Stanley Steamer Internat. 1,142 11/30/04 586
- ------------------------------------------------------------------------------------------------------------------------------------
587 587
588 588
589 Nice Price, Inc. 840 4/30/06 Sco Video 275 9/30/04 589
590 Anderson Corrigan & Co. 3,739 5/31/01 Color Lab 4,700 2/7/00 590
591 Northeast Valley Health Corp. 5,155 4/1/02 Panorama Pharmacy 2,023 9/30/00 591
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
Control
No. Property Name Address
==========================================================================================================================
<S> <C> <C>
592 IHOP Gastonia 500 Cox Road
593 Taylor Gardens 7601-7715 Hillendale Road
594 Tara Ridge Apartments 6700 Tara Boulevard
595 Camelot and Circle Inn Mobile Home Parks 330 W. Chubbuck Rd. and 210 Circle Inn St.
596 Shoppes of Pembroke 12101 Taft Street
- --------------------------------------------------------------------------------------------------------------------------
597 Normandy Retail Center 957, 969 & 1111 Normandy Drive
598 La Tijera Manor Apartments 7100-7124 Alvern Street
599 Applied Companies Building 28020 Avenue Standford
600 238-268 Post Road 238-268 Post Road
601 Warehouse Specialists - 1286 Ehlers Road 1286 Ehlers Road
- --------------------------------------------------------------------------------------------------------------------------
602 Warehouse Specialists - Dixie Street 356 Dixie Street
603 Unicom Plaza 15535 San Fernando Mission Blvd
604 IHOP Wilmington 5355 Market Street
605 Eckerd Kernersville SEC Nelson St & Piney Grove Rd
606 Eckerds Easley 5991 Calhoun Memorial Highway
- --------------------------------------------------------------------------------------------------------------------------
607 Rincon Plaza SWC of Golf Links Road and Harrison Road
608 Eckerd Store (Mt. Holly) 617 Highland Street
609 University Court Apartments 1414 3Rd Street South
610 Patrick Business Park 6165 Annie Oakley Drive
611 Eckerd Store (Florence) W. Palmetto Street/Cashua Drive
- --------------------------------------------------------------------------------------------------------------------------
612 222 Post Road 222 Post Road
613 Ocean Villa Townhomes #3 4401-4601 Dallas Drive
614 Kennestone Corners Business Center 1265 Kennestone Circle
615 Kings Tree Apartments 1800 Kingsley Avenue
616 Rite Aid Pharmacy (Williamsport) 14 West Fifth Street
- --------------------------------------------------------------------------------------------------------------------------
617 CVS Pharmacy (Westbrook) 870 Main Street
618 Brookhill Plaza 1787 Fort Union Blvd
619 Lexington Village Apartments 200-206 Lexington Drive and 902-911 Christy Court
620 2715 Agate Court 2175 Agate Court
621 Townsgate Atrium 2277 Townsgate Road
- --------------------------------------------------------------------------------------------------------------------------
622 Carey Hill Plaza 220 E. Ashland Street
623 Edison Apartments 5651 East Edison Street
624 Warehouse Specialists - Bell Street 555 Bell Street
625 Warehouse Specialists - Combined Locks 100 West Prospect Street
626 A-Advance Self-Storage 301 West Indian School Road
- --------------------------------------------------------------------------------------------------------------------------
627 Williamstown Bay 4809 Dale Street
628 52 Liberty Street 52 Liberty Street
629 Highview Apartments 930-934 Greenbriar Drive and 1024 Hillcrest Drive
630 Kingwood 118 Kingwood Drive
631 Nob Hill Office Park 2520 Longview Street
- --------------------------------------------------------------------------------------------------------------------------
632 North Post Oak Business Center 1500 North Poast Oak Road
633 Morningside Square Apartments 2401-2414 Shakespeare Road
634 Randall Court Apartments 6716-6728 Randall Court
635 Dillard Office Building 2424 Springer Drive
636 128th Street Warehouse 4590 N.W. 128th Street
- --------------------------------------------------------------------------------------------------------------------------
637 Briarcliff Mews Apartments 803 Briarcliff Road
638 Westgate Apartments 8721 Owensmouth Avenue
639 Broadmoor Apartments 725 S. Tucson Blvd
640 Wolfpack Village Apartments 643-733,735&738 Knox Street N. & 99&31 Gentle Ave.
641 William Tell Apartments 203 Eden Drive
- --------------------------------------------------------------------------------------------------------------------------
642 13Th South Self Storage 1150 South 500 West
643 19-25 Brighton Avenue 19-25 Brighton Avenue
644 The In-Line Shop Space (Chandler) 940 North Alma School Road
645 Haverford Apartments 870 North Haverford Avenue
646 Crates shopping center 14 North Bridge Avenue
- --------------------------------------------------------------------------------------------------------------------------
647 Dahnert Park Apartments One Dahnert Park Lane
648 Roger Post 4022 North Rogers Avenue
649 Ruffolo Plaza 9701-9711 West Sample Road
650 Continental House 4318 South 25th Street
651 NTB Store Site Vestal Parkway East
- --------------------------------------------------------------------------------------------------------------------------
652 Pier 1 Imports 1524 Skyland Boulevard
653 Sunbelt Newport News 745 Industrial Park Drive
654 Northpointe Apartments 1329-1357 No. Redwood Road
655 Francesca Apartments 775 East 11th Avenue
656 514 - 524 Huron Blvd. SE 514 - 524 Huron Boulevard, SE
- --------------------------------------------------------------------------------------------------------------------------
657 4030 Pacheco Boulevard 4030 Pacheco Boulevard
658 USPS Fallon 120 Allen Road
659 Las Flores Apartments 145 South Avenue B
660 Woodlawn Village 6601-6705 Kincheloe
661 Monmouth Beach Village 108 South Cookman Avenue
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial
No. City State Code Groups Balance ($) Balance ($) Balance Pool Balance
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
592 Gastonia NC 28054 $ 1,363,071 $ 1,362,341.15 0.04% 97.56%
593 Baltimore MD 21234 1,350,000 1,346,725.69 0.04 97.60
594 Jonesboro GA 30236 1,350,000 1,346,566.52 0.04 97.64
595 Chubbuck ID 83202 1,350,000 1,345,749.00 0.04 97.68
596 Pembroke Pines FL 33026 1,330,000 1,326,253.83 0.04 97.72
- ------------------------------------------------------------------------------------------------------------------------------------
597 Miami Beach FL 33134 1,300,000 1,298,285.64 0.04 97.76
598 Los Angeles CA 90045 1,300,000 1,298,280.46 0.04 97.79
599 Santa Clarita CA 91355 1,300,000 1,297,300.01 0.04 97.83
600 Fairfield CT 06430 1,300,000 1,295,028.76 0.04 97.87
601 Neenah WI 54956 Group H 1,300,000 1,292,350.28 0.04 97.91
- ------------------------------------------------------------------------------------------------------------------------------------
602 Fond Du Lac WI 54935 Group H 1,300,000 1,292,350.28 0.04 97.94
603 Mission Hills CA 91345 1,300,000 1,284,407.81 0.04 97.98
604 Wilmington NC 28405 1,264,815 1,264,040.35 0.04 98.02
605 Kernersville NC 27284 1,260,824 1,258,690.89 0.04 98.05
606 Easley SC 29640 1,261,213 1,256,879.83 0.04 98.09
- ------------------------------------------------------------------------------------------------------------------------------------
607 Tucson AZ 85730 Group J 1,255,000 1,253,340.82 0.04 98.12
608 Mt. Holly NC 28120 1,250,000 1,235,810.25 0.04 98.16
609 Minneapolis MN 55454 1,235,000 1,230,003.85 0.04 98.20
610 Las Vegas NV 89120 1,230,000 1,225,749.60 0.04 98.23
611 Florence SC 29501 1,230,000 1,217,660.73 0.04 98.27
- ------------------------------------------------------------------------------------------------------------------------------------
612 Fairfield CT 06430 1,220,000 1,215,334.67 0.03 98.30
613 Oxnard CA 93033 1,200,000 1,198,345.26 0.03 98.34
614 Marietta GA 30066 1,200,000 1,197,430.82 0.03 98.37
615 Orange Park FL 32073 1,200,000 1,196,993.15 0.03 98.40
616 Williamsport PA 17701 1,200,000 1,192,416.56 0.03 98.44
- ------------------------------------------------------------------------------------------------------------------------------------
617 Westbrook ME 04092 1,176,000 1,162,826.18 0.03 98.47
618 Salt Lake City UT 84121 Group I 1,162,500 1,158,791.94 0.03 98.51
619 Clarksville TN 37040 1,150,000 1,149,068.46 0.03 98.54
620 Simi Valley CA 93065 1,150,000 1,147,038.62 0.03 98.57
621 Thousand Oaks CA 91361 1,135,000 1,130,478.49 0.03 98.60
- ------------------------------------------------------------------------------------------------------------------------------------
622 Brockton MA 02402 1,125,000 1,120,962.08 0.03 98.64
623 Tucson AZ 85712 1,106,250 1,102,685.96 0.03 98.67
624 Neenah WI 54956 Group H 1,100,000 1,093,527.16 0.03 98.70
625 Combined Locks WI 54113 Group H 1,100,000 1,093,527.16 0.03 98.73
626 Phoenix AZ 85013 1,100,000 1,083,699.73 0.03 98.76
- ------------------------------------------------------------------------------------------------------------------------------------
627 McFarland WI 53558 1,077,000 1,074,983.00 0.03 98.79
628 Kearny NJ 07032 1,068,000 1,064,955.41 0.03 98.82
629 DeKalb IL 60115 1,060,000 1,060,000.00 0.03 98.85
630 Murfreesboro TN 37130 1,063,000 1,059,090.79 0.03 98.88
631 Austin TX 78705 1,050,000 1,048,643.01 0.03 98.91
- ------------------------------------------------------------------------------------------------------------------------------------
632 Houston TX 77055 1,050,000 1,047,141.55 0.03 98.94
633 Houston TX 77030 1,050,000 1,044,004.88 0.03 98.97
634 Gladstone MO 64118 1,016,000 1,012,794.54 0.03 99.00
635 Norman OK 73609 1,000,000 997,934.48 0.03 99.03
636 Opa Locka FL 33054 1,000,000 997,930.56 0.03 99.06
- ------------------------------------------------------------------------------------------------------------------------------------
637 Atlanta GA 30306 1,000,000 997,476.59 0.03 99.09
638 Canoga Park CA 91304 1,000,000 997,277.19 0.03 99.12
639 Tucson AZ 85716 1,000,000 997,248.62 0.03 99.15
640 Monmouth OR 97361 1,000,000 995,293.89 0.03 99.18
641 Longview TX 75605 1,000,000 993,266.00 0.03 99.20
- ------------------------------------------------------------------------------------------------------------------------------------
642 Salt Lake City UT 84101 1,000,000 992,949.59 0.03 99.23
643 Allston MA 02134 990,000 989,227.70 0.03 99.26
644 Chandler AZ 85224 975,000 972,608.45 0.03 99.29
645 Pacific Palisades CA 90272 975,000 970,329.45 0.03 99.32
646 Redbank NJ 07701 960,000 958,969.88 0.03 99.35
- ------------------------------------------------------------------------------------------------------------------------------------
647 Garfield NJ 07026 960,000 957,508.82 0.03 99.37
648 Baltimore MD 21207 953,000 950,688.06 0.03 99.40
649 Coral Springs FL 33065 938,000 933,851.66 0.03 99.43
650 Omaha NE 68107 930,000 930,000.00 0.03 99.45
651 Vestal NY 13805 920,000 918,191.46 0.03 99.48
- ------------------------------------------------------------------------------------------------------------------------------------
652 Tuscaloosa AL 35405 900,000 899,313.12 0.03 99.51
653 Newport News VA 23608 894,013 891,617.14 0.03 99.53
654 Salt Lake City UT 84116 888,000 886,820.11 0.03 99.56
655 Denver CO 80218 880,000 879,261.42 0.03 99.58
656 Minneapolis MN 55414 864,000 862,793.79 0.02 99.61
- ------------------------------------------------------------------------------------------------------------------------------------
657 Martinez CA 94553 836,250 834,233.40 0.02 99.63
658 Fallon NV 89406 831,745 828,685.79 0.02 99.66
659 Yuma AZ 85364 820,000 817,376.30 0.02 99.68
660 Baltimore MD 21207 788,000 786,130.46 0.02 99.70
661 Long Branch NJ 07740 780,000 780,000.00 0.02 99.72
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Interest Original Remaining
Control Mortgage Administrative Accrual Amortization Interest-Only Interest-Only
No. Rate (%) Cost Rate (%) Method Type Period (Mos.) Period (Mos.)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
592 7.8750% 0.0962% 30/360 Step Payments: Fully Amortizing(1) 0 0
593 7.1000 0.0962 30/360 Amortizing Balloon 0 0
594 6.8300 0.0962 30/360 Amortizing Balloon 0 0
595 7.2500 0.0962 Actual/360 Amortizing Balloon 0 0
596 7.8100 0.1562 Actual/360 Amortizing (ARD) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
597 7.3800 0.1462 Actual/360 Amortizing Balloon 0 0
598 7.3680 0.0962 Actual/360 Amortizing Balloon 0 0
599 7.5010 0.0962 Actual/360 Amortizing Balloon 0 0
600 7.1800 0.1462 Actual/360 Amortizing Balloon 0 0
601 7.4375 0.0962 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
602 7.4375 0.0962 Actual/360 Fully Amortizing 0 0
603 7.6910 0.0962 30/360 Fully Amortizing 0 0
604 7.8750 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
605 7.1250 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
606 6.7900 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
607 7.3700 0.1462 Actual/360 Amortizing Balloon 0 0
608 7.5800 0.0962 30/360 Fully Amortizing 0 0
609 6.7840 0.0962 Actual/360 Amortizing Balloon 0 0
610 7.6150 0.0962 Actual/360 Amortizing Balloon 0 0
611 7.4700 0.0962 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
612 7.1800 0.1462 Actual/360 Amortizing Balloon 0 0
613 7.2010 0.0962 Actual/360 Amortizing Balloon 0 0
614 7.3400 0.1462 Actual/360 Amortizing Balloon 0 0
615 7.3750 0.0962 Actual/360 Amortizing Balloon 0 0
616 7.0600 0.0962 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
617 7.4200 0.0962 30/360 Fully Amortizing 0 0
618 7.9750 0.0962 Actual/360 Amortizing Balloon 0 0
619 7.0600 0.0962 Actual/360 Amortizing Balloon 0 0
620 7.2150 0.0962 Actual/360 Amortizing Balloon 0 0
621 7.8630 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
622 7.6250 0.0962 Actual/360 Amortizing Balloon 0 0
623 7.1340 0.0962 Actual/360 Amortizing Balloon 0 0
624 7.4375 0.0962 Actual/360 Fully Amortizing 0 0
625 7.4375 0.0962 Actual/360 Fully Amortizing 0 0
626 7.8630 0.0962 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
627 9.1100 0.0962 Actual/360 Amortizing Balloon 0 0
628 7.7500 0.0962 Actual/360 Amortizing Balloon 0 0
629 7.2500 0.0962 Actual/360 Amortizing Balloon 0 0
630 7.3300 0.0962 Actual/360 Amortizing Balloon 0 0
631 7.4600 0.1462 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
632 6.8900 0.0962 Actual/360 Amortizing (ARD) 0 0
633 7.3410 0.0962 Actual/360 Amortizing Balloon 0 0
634 7.2400 0.1712 30/360 Amortizing Balloon 0 0
635 7.5300 0.0962 Actual/360 Amortizing Balloon 0 0
636 7.5200 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
637 6.8800 0.0962 30/360 Amortizing Balloon 0 0
638 6.8890 0.0962 Actual/360 Amortizing Balloon 0 0
639 6.8280 0.0962 Actual/360 Amortizing Balloon 0 0
640 7.3600 0.1462 30/360 Fully Amortizing 0 0
641 7.5000 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
642 8.0000 0.0962 Actual/360 Amortizing Balloon 0 0
643 7.2500 0.0962 Actual/360 Amortizing Balloon 0 0
644 7.5000 0.1462 Actual/360 Amortizing (ARD) 0 0
645 7.5670 0.0962 Actual/360 Amortizing Balloon 0 0
646 7.8750 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
647 7.1700 0.0962 Actual/360 Amortizing (ARD) 0 0
648 7.1000 0.0962 30/360 Amortizing Balloon 0 0
649 7.7500 0.0962 Actual/360 Amortizing Balloon 0 0
650 6.8750 0.0962 Actual/360 Amortizing Balloon 0 0
651 7.2900 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
652 7.3600 0.0962 Actual/360 Amortizing (ARD) 0 0
653 8.1250 0.0962 30/360 Step Payments: Fully Amortizing(1) 0 0
654 7.3500 0.0962 Actual/360 Amortizing Balloon 0 0
655 6.8800 0.0962 Actual/360 Amortizing Balloon 0 0
656 7.1510 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
657 7.6000 0.0962 Actual/360 Amortizing Balloon 0 0
658 7.8500 0.0962 30/360 Fully Amortizing 0 0
659 7.1690 0.0962 Actual/360 Amortizing Balloon 0 0
660 7.2100 0.0962 30/360 Amortizing Balloon 0 0
661 6.9600 0.0962 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Original Remaining
Term to Term to Original Remaining
Control Maturity Maturity Amortization Amortization Origination Maturity Balloon
No. (Mos.) (Mos.) Term (Mos.) Term (Mos.) Date or ARD Balance ($) Property Type
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
592 284 283 284 283 3/24/98 12/1/21 - CTL
593 120 117 360 357 1/14/98 2/1/08 $ 1,161,178 Multifamily
594 120 118 300 298 2/19/98 3/1/08 1,056,458 Multifamily
595 120 116 360 356 12/22/97 1/1/08 1,184,697 Mobile Home Park
596 180 176 360 356 12/9/97 1/1/13 1,054,074 Retail - Unanchored
- -------------------------------------------------------------------------------------------------------------------------------
597 120 118 360 358 2/18/98 3/1/08 1,145,459 Retail - Anchored
598 120 118 360 358 2/10/98 3/1/08 1,145,107 Multifamily
599 120 118 300 298 2/26/98 3/1/08 1,056,430 Industrial
600 180 177 300 297 1/7/98 2/1/13 829,284 Retail - Unanchored
601 180 178 180 178 2/9/98 3/1/13 27,469 Industrial
- -------------------------------------------------------------------------------------------------------------------------------
602 180 178 180 178 2/9/98 3/1/13 27,469 Industrial
603 180 176 180 176 12/31/97 1/1/13 - Office
604 281 280 281 280 3/24/98 9/1/21 - CTL
605 230 229 230 229 3/30/98 6/1/17 - CTL
606 227 225 227 225 2/4/98 2/1/17 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
607 120 118 360 358 2/6/98 3/1/08 1,105,526 Retail - Anchored
608 235 229 235 229 10/31/97 6/1/17 - CTL
609 120 117 300 297 1/8/98 2/1/08 980,741 Multifamily
610 120 115 360 355 11/25/97 12/1/07 1,089,571 Industrial
611 229 224 229 224 11/10/97 1/1/17 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
612 180 177 300 297 1/7/98 2/1/13 778,250 Retail - Unanchored
613 120 118 360 358 2/26/98 3/1/08 1,052,477 Multifamily
614 120 118 300 298 2/24/98 3/1/08 970,428 Industrial
615 120 117 360 357 1/26/98 2/1/08 1,056,263 Multifamily
616 228 225 228 225 1/6/98 2/1/17 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
617 239 233 239 233 10/23/97 10/1/17 - CTL
618 120 115 360 355 12/1/97 12/1/07 1,038,838 Office
619 120 119 360 359 3/23/98 4/1/08 1,004,755 Multifamily
620 120 117 360 357 1/29/98 2/1/08 1,008,118 Industrial
621 120 114 360 354 10/30/97 11/1/07 1,011,396 Office
- -------------------------------------------------------------------------------------------------------------------------------
622 120 117 300 297 1/6/98 2/1/08 916,641 Retail - Anchored
623 120 116 360 356 12/30/97 1/1/08 967,882 Multifamily
624 180 178 180 178 2/9/98 3/1/13 23,244 Industrial
625 180 178 180 178 2/9/98 3/1/13 23,244 Industrial
626 180 175 180 175 11/20/97 12/1/12 - Self Storage
- -------------------------------------------------------------------------------------------------------------------------------
627 300 297 360 357 1/28/98 2/1/23 541,259 Multifamily - Section 42
628 120 116 360 356 12/31/97 1/1/08 949,047 Multifamily
629 120 120 360 360 4/3/98 5/1/08 930,843 Multifamily
630 180 175 360 355 11/26/97 12/1/12 825,339 Multifamily
631 120 118 360 358 2/10/98 3/1/08 927,063 Office
- -------------------------------------------------------------------------------------------------------------------------------
632 84 81 360 357 1/28/98 2/1/05 964,379 Office
633 120 115 300 295 11/10/97 12/1/07 848,620 Multifamily
634 120 116 360 356 12/12/97 1/1/08 876,713 Multifamily
635 120 118 300 298 2/2/98 3/1/08 813,345 Office
636 120 118 300 298 2/19/98 3/1/08 813,101 Industrial
- -------------------------------------------------------------------------------------------------------------------------------
637 120 118 300 298 2/19/98 3/1/08 783,676 Multifamily
638 120 117 360 357 1/30/98 2/1/08 869,156 Multifamily
639 120 117 360 357 1/15/98 2/1/08 867,738 Multifamily
640 300 296 300 296 12/24/97 1/1/23 - Multifamily
641 120 114 300 294 10/30/97 11/1/07 811,971 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
642 120 113 300 293 9/30/97 10/1/07 824,134 Self Storage
643 120 119 360 359 3/4/98 4/1/08 869,265 Multifamily
644 120 117 360 357 1/9/98 2/1/08 860,920 Retail - Anchored
645 120 113 360 353 9/30/97 10/1/07 862,689 Multifamily
646 180 179 300 299 3/3/98 4/1/13 635,911 Mixed Use
- -------------------------------------------------------------------------------------------------------------------------------
647 180 177 360 357 1/22/98 2/1/13 739,586 Multifamily
648 120 117 360 357 1/14/98 2/1/08 819,705 Multifamily
649 120 116 300 296 12/19/97 1/1/08 767,247 Retail - Unanchored
650 120 120 360 360 4/3/98 5/1/08 808,634 Multifamily
651 238 236 238 236 2/4/98 1/1/18 - CTL
- -------------------------------------------------------------------------------------------------------------------------------
652 120 119 360 359 3/2/98 4/1/08 792,480 Retail - Anchored
653 236 234 236 234 2/27/98 11/1/17 - CTL
654 120 118 360 358 2/10/98 3/1/08 781,837 Multifamily
655 84 83 360 359 3/30/98 4/1/05 808,326 Multifamily
656 120 118 360 358 2/27/98 3/1/08 756,795 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
657 120 117 360 357 1/30/98 2/1/08 740,244 Industrial
658 233 231 233 231 2/18/98 8/1/17 - CTL
659 120 116 360 356 12/18/97 1/1/08 718,088 Multifamily
660 120 117 360 357 1/14/98 2/1/08 679,505 Multifamily
661 360 360 360 360 4/3/98 5/1/28 66,807 Multifamily - Section 42
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Annual
Control Debt Net Appraised
No. Prepayment Provisions Service ($) Cash Flow ($) DSCR (x) Value ($)
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
592 L(8),D(15.67) Step Loan $ 127,710 NAP $ 1,410,000
593 L(4),YM1%(4),O(2) $ 108,869 160,410 1.47x 1,800,000
594 L(7),D(2.5),O(.5) 112,747 145,801 1.29 1,750,000
595 L(4),D(5.75),O(.25) 110,513 157,504 1.43 1,800,000
596 L(10),D(4.75),O(.25) 115,002 151,953 1.32 1,775,000
- ------------------------------------------------------------------------------------------------------------------------------
597 L(4),D(5.75),O(.25) 107,799 152,753 1.42 1,800,000
598 L(4),D(5.83),O(.17) 107,671 155,981 1.45 1,750,000
599 L(4),D(5.83),O(.17) 115,293 190,349 1.65 2,180,000
600 L(7.5),D(7),O(.5) 112,055 142,465 1.27 1,850,000
601 L(6),D(8.75),O(.25) 144,060 219,879 1.53 2,500,000
- ------------------------------------------------------------------------------------------------------------------------------
602 L(6),D(8.75),O(.25) 144,060 216,957 1.51 2,370,000
603 L(4),D(10.83),O(.17) 146,312 155,441 1.06 1,850,000
604 L(8),D(15.42) Step Loan 119,790 NAP 1,320,000
605 L(4),D(15.167) Step Loan 138,517 NAP 1,550,000
606 L(8),YM1%(10.92) Step Loan 113,793 NAP 1,600,000
- ------------------------------------------------------------------------------------------------------------------------------
607 L(4),YM1%(5.75),O(.25) 103,964 136,360 1.31 1,680,000
608 L(8),D(11.58) 122,685 163,487 NAP 1,760,000
609 L(4),D(5.83),O(.17) 102,711 159,654 1.55 1,600,000
610 L(4),D(5.83),O(.17) 104,369 140,082 1.34 1,614,000
611 L(10),D(9.08) 121,129 126,938 NAP 1,400,000
- ------------------------------------------------------------------------------------------------------------------------------
612 L(7.5),D(7),O(.5) 105,160 140,946 1.34 1,700,000
613 L(4),D(5.83),O(.17) 97,755 144,087 1.47 1,560,000
614 L(5),D(4.5),O(.5) 104,921 135,403 1.29 1,835,000
615 L(4),D(5.75),O(.25) 99,457 126,335 1.27 1,800,000
616 L(12),YM1%(7) 114,876 168,015 NAP 1,850,000
- ------------------------------------------------------------------------------------------------------------------------------
617 L(10),D(9.42),O(.5) 113,202 116,093 NAP 1,300,000
618 L(4),D(5.83),O(.17) 102,117 133,539 1.31 1,550,000
619 L(4),D(5.5),O(.5) 92,368 122,895 1.33 1,500,000
620 L(4),D(5.83),O(.17) 93,813 129,900 1.38 2,100,000
621 L(4),D(5.83),O(.17) 98,641 142,284 1.44 1,600,000
- ------------------------------------------------------------------------------------------------------------------------------
622 L(4),D(5.75),O(.25) 100,864 125,756 1.25 1,550,000
623 L(4),D(5.83),O(.17) 89,517 123,121 1.38 1,430,000
624 L(6),D(8.75),O(.25) 121,897 168,887 1.39 1,890,000
625 L(6),D(8.75),O(.25) 121,897 172,566 1.42 1,630,000
626 L(4),D(10.83),O(.17) 125,104 172,649 1.38 1,700,000
- ------------------------------------------------------------------------------------------------------------------------------
627 L(2.25),D(12.75),O(10) 105,014 126,644 1.21 1,460,000
628 L(4),D(5.75),O(.25) 91,815 116,321 1.27 1,425,000
629 L(4),D(5.5),O(.5) 86,773 106,651 1.23 1,300,000
630 L(2),YM1%(6),4(1),3(1),2(1),1(1),O(3) 87,712 113,383 1.29 3,550,000
631 L(4),D(5.75),O(.25) 87,756 107,996 1.23 1,610,000
- ------------------------------------------------------------------------------------------------------------------------------
632 L(4),D(2.75),O(.25) 82,899 118,073 1.42 1,400,000
633 L(4),D(5.83),O(.17) 91,814 132,816 1.45 1,400,000
634 L(4),YM1%(5),O(1) 83,088 121,769 1.47 1,280,000
635 L(4),D(5.5),O(.5) 88,913 113,915 1.28 1,350,000
636 L(4),D(5.75),O(.25) 88,835 121,191 1.36 1,350,000
- ------------------------------------------------------------------------------------------------------------------------------
637 L(7),D(2.5),O(.5) 83,897 108,035 1.29 1,275,000
638 L(4),D(5.83),O(.17) 78,944 134,149 1.70 1,540,000
639 L(4),D(5.83),O(.17) 78,455 124,247 1.58 1,500,000
640 L(12),D(12.75),O(.25) 87,589 146,749 1.68 1,725,000
641 L(4),D(5.83),O(.17) 88,679 125,606 1.42 1,500,000
- ------------------------------------------------------------------------------------------------------------------------------
642 L(4),D(5.83),O(.17) 92,618 135,510 1.46 1,670,000
643 L(3),D(7) 81,043 103,282 1.27 1,275,000
644 L(4),YM1%(5.5),O(.5) 81,808 131,609 1.61 1,300,000
645 L(4),D(5.83),O(.17) 82,346 97,921 1.19 1,480,000
646 L(1),YM1%(13.5),O(.5) 87,961 116,262 1.32 1,275,000
- ------------------------------------------------------------------------------------------------------------------------------
647 L(3),D(11.5),O(.5) 77,963 96,914 1.24 1,200,000
648 L(4),YM1%(4),O(2) 76,854 105,588 1.37 1,270,000
649 L(4),D(5.75),O(.25) 85,020 114,191 1.34 1,250,000
650 L(5),D(5) 73,313 116,485 1.59 1,300,000
651 L(10),D(9.83) Step Loan 79,415 NAP 1,000,000
- ------------------------------------------------------------------------------------------------------------------------------
652 L(4),YM1%(5.75),O(.25) 74,483 100,973 1.36 1,200,000
653 L(8)YM1%(11.417),O(.25) Step Loan 91,313 NAP 975,000
654 L(4),YM1%(5.83),O(.17) or D(Borr) 73,417 101,048 1.38 1,110,000
655 L(3),D(3.75),O(.25) 69,407 83,923 1.21 1,100,000
656 L(4),D(5.83),O(.17) 70,033 91,980 1.31 1,080,000
- ------------------------------------------------------------------------------------------------------------------------------
657 L(4),D(5.83),O(.17) 70,855 100,767 1.42 1,115,000
658 L(8)D(11.417) 83,587 87,767 NAP 1,200,000
659 L(4),D(5.83),O(.17) 66,586 97,950 1.47 1,070,000
660 L(4),YM1%(4),O(2) 64,250 90,071 1.40 1,050,000
661 L(4),YM1(6),1(19.75),O(.25) or D(Borr) 62,021 81,608 1.32 975,000
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten
Hospitality Sq. Ft., Loan per
Cut-off Scheduled Average Units Sq. Ft., Units
Control Appraisal Date Maturity Date Daily Year Year Bed, Pad Bed, Pad Occupancy
No. Year LTV (%) LTV (%) Rate ($) Built Renovated or Room or Room ($) Percentage (%)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
592 1997 NAP 0.0% 1997 N/A 4,558 Sq. Ft. $ 299.05 100.0%
593 1997 74.8% 64.5 1960 1990 54 Units 25,000.00 92.6
594 1997 77.0 60.4 1970 N/A 70 Units 19,285.71 94.3
595 1997 74.8 65.8 1965 1986 135 Pads 10,000.00 99.2
596 1997 74.7 59.4 1982 1992-93 21,729 Sq. Ft. 61.21 100.0
- --------------------------------------------------------------------------------------------------------------------------------
597 1998 72.1 63.6 1949,1987 N/A 19,725 Sq. Ft. 65.91 100.0
598 1997 74.2 65.4 1950 1989 32 Units 40,625.00 100.0
599 1998 59.5 48.5 1968 1995 37,546 Sq. Ft. 34.62 100.0
600 1997 70.0 44.8 1987 N/A 12,227 Sq. Ft. 106.32 100.0
601 1997 51.7 1.1 1979 N/A 120,000 Sq. Ft. 10.83 100.0
- --------------------------------------------------------------------------------------------------------------------------------
602 1997 54.5 1.2 1973 N/A 130,000 Sq. Ft. 10.00 100.0
603 1997 69.4 0.0 1992 N/A 25,448 Sq. Ft. 51.08 100.0
604 1997 NAP 0.0 1996 N/A 4,558 Sq. Ft. 277.49 100.0
605 1998 NAP 0.0 1997 N/A 10,908 Sq. Ft. 115.59 100.0
606 1997 NAP 0.0 1997 N/A 10,938 Sq. Ft. 115.31 100.0
- --------------------------------------------------------------------------------------------------------------------------------
607 1997 74.6 65.8 1988 N/A 25,592 Sq. Ft. 49.04 95.7
608 1997 NAP 0.0 1997 N/A 10,908 Sq. Ft. 114.59 100.0
609 1997 76.9 61.3 1968 N/A 70 Units 17,642.86 100.0
610 1997 75.9 67.5 1997 N/A 26,883 Sq. Ft. 45.75 100.0
611 1997 NAP 0.0 1997 N/A 10,908 Sq. Ft. 112.76 100.0
- --------------------------------------------------------------------------------------------------------------------------------
612 1997 71.5 45.8 1989 N/A 11,760 Sq. Ft. 103.74 100.0
613 1998 76.8 67.5 1973 N/A 27 Units 44,444.44 100.0
614 1997 65.3 52.9 1985 N/A 33,350 Sq. Ft. 35.98 100.0
615 1997 66.5 58.7 1971 N/A 80 Units 15,000.00 96.3
616 1997 NAP 0.0 1997 N/A 10,004 Sq. Ft. 119.95 100.0
- --------------------------------------------------------------------------------------------------------------------------------
617 1997 NAP 0.0 1997 N/A 8,775 Sq. Ft. 134.02 100.0
618 1997 74.8 67.0 1983 N/A 18,880 Sq. Ft. 61.57 100.0
619 1998 76.6 67.0 1981 N/A 48 Units 23,958.33 96.0
620 1997 54.6 48.0 1986 N/A 38,434 Sq. Ft. 29.92 100.0
621 1997 70.7 63.2 1983 N/A 17,334 Sq. Ft. 65.48 99.0
- --------------------------------------------------------------------------------------------------------------------------------
622 1997 72.3 59.1 1974 N/A 34,864 Sq. Ft. 32.27 100.0
623 1997 77.1 67.7 1985 N/A 56 Units 19,754.46 94.7
624 1997 57.9 1.2 1983 N/A 97,000 Sq. Ft. 11.34 100.0
625 1997 67.1 1.4 1967-1968 N/A 124,800 Sq. Ft. 8.81 100.0
626 1997 63.8 0.0 1963 1996 333 Units 3,303.30 98.0
- --------------------------------------------------------------------------------------------------------------------------------
627 1997 73.6 37.1 1996 N/A 40 Units 26,925.00 97.5
628 1997 74.7 66.6 1940 1990 36 Units 29,666.67 97.2
629 1998 81.5 71.6 1977 N/A 40 Units 26,500.00 97.0
630 1997 29.8 23.3 1976 N/A 112 Units 9,491.07 95.5
631 1997 65.1 57.6 1963 1980's 23,570 Sq. Ft. 44.55 100.0
- --------------------------------------------------------------------------------------------------------------------------------
632 1997 74.8 68.9 1986 N/A 31,012 Sq. Ft. 33.86 100.0
633 1997 74.6 60.6 1950 1996 53 Units 19,811.32 98.0
634 1997 79.1 68.5 1987 N/A 44 Units 23,090.91 100.0
635 1997 73.9 60.3 1983 N/A 22,772 Sq. Ft. 43.91 93.5
636 1997 73.9 60.2 1972 1985,89,90 36,519 Sq. Ft. 27.38 100.0
- --------------------------------------------------------------------------------------------------------------------------------
637 1997 78.2 61.5 1960 N/A 32 Units 31,250.00 87.5
638 1997 64.8 56.4 1977 N/A 40 Units 25,000.00 95.0
639 1997 66.5 57.9 1987 N/A 69 Units 14,492.75 100.0
640 1997 57.7 0.0 1965,1966 N/A 50 Units 20,000.00 96.0
641 1997 66.2 54.1 1969 N/A 96 Units 10,416.67 94.0
- --------------------------------------------------------------------------------------------------------------------------------
642 1997 59.5 49.4 1995 N/A 354 Units 2,824.86 97.0
643 1998 77.6 68.2 1910 1997 31 Units 31,935.48 100.0
644 1997 74.8 66.2 1976 N/A 21,100 Sq. Ft. 46.21 100.0
645 1997 65.6 58.3 1954 1996 18 Units 54,166.67 100.0
646 1997 75.2 49.9 1930,75,78 N/A 18,731 Sq. Ft. 51.25 100.0
- --------------------------------------------------------------------------------------------------------------------------------
647 1997 79.8 61.6 1965 N/A 24 Units 40,000.00 95.9
648 1997 74.9 64.5 1972 1997 44 Units 21,659.09 89.9
649 1997 74.7 61.4 1983 1996 22,154 Sq. Ft. 42.34 89.9
650 1998 71.5 62.2 1966 1997 55 Units 16,909.09 90.8
651 1997 NAP 0.0 1997 N/A 12,410 Sq. Ft. 74.13 100.0
- --------------------------------------------------------------------------------------------------------------------------------
652 1997 74.9 66.0 1995 N/A 9,032 Sq. Ft. 99.65 100.0
653 1998 NAP 0.0 1997 N/A 8,750 Sq. Ft. 102.17 100.0
654 1998 79.9 70.4 1974 N/A 26 Units 34,153.85 84.0
655 1998 79.9 73.5 1940-46 N/A 37 Units 23,783.78 100.0
656 1997 79.9 70.1 1966 N/A 34 Units 25,411.76 100.0
- --------------------------------------------------------------------------------------------------------------------------------
657 1998 74.8 66.4 1988 N/A 12,089 Sq. Ft. 69.17 100.0
658 1997 NAP 0.0 1997 N/A 5,173 Sq. Ft. 160.79 100.0
659 1997 76.4 67.1 1985 N/A 48 Units 17,083.33 95.0
660 1997 74.9 64.7 1960 N/A 36 Units 21,888.89 92.5
661 1998 80.0 6.9 1965 1998 20 Units 39,000.00 95.0
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Tenant
------------------------------------------------------------------------------
Tenant
Control Rent Roll Underwriting Area Leased Lease
No. Date Reserves ($) per Tenant Name (Sq. Ft.) Exp Date
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
592 5/1/98 - Sq. Ft. IHOP Properties, Inc. 4,558 12/31/21
593 1/14/98 $265.00 Unit
594 10/25/97 250.00 Unit
595 10/1/97 33.00 Pad
596 11/25/97 0.17 Sq. Ft. Remax Realty 3,100 1/31/00
- ------------------------------------------------------------------------------------------------------------------------------------
597 2/20/98 0.44 Sq. Ft. Normandy #1 7,875 3/1/99
598 1/12/98 269.94 Unit
599 12/1/97 0.09 Sq. Ft. Applied Companies 37,012 2/28/08
600 12/11/97 0.16 Sq. Ft. Classic Fitness 4,200 6/30/99
601 0 0.09 Sq. Ft. Warehouse Specialists, Inc. 120,000 3/1/13
- ------------------------------------------------------------------------------------------------------------------------------------
602 1/1/98 0.10 Sq. Ft. Warehouse Specialists, Inc. 130,000 3/1/13
603 11/20/97 0.19 Sq. Ft. City Of Los Angeles 13,500 6/30/99
604 5/1/98 - Sq. Ft. IHOP Properties, Inc. 4,558 9/30/21
605 5/1/98 0.20 Sq. Ft. Eckerd Corporation 10,908 8/2/17
606 5/1/98 0.15 Sq. Ft. Eckerd Corporation 10,938 3/8/17
- ------------------------------------------------------------------------------------------------------------------------------------
607 12/31/97 0.32 Sq. Ft. ABCO Markets (Shadow) 42,843 5/31/09
608 5/1/98 0.10 Sq. Ft. Eckerd 10,908 6/29/17
609 12/12/97 181.00 Unit
610 10/1/97 0.15 Sq. Ft. Usa Pre-Sort And Mailing Services, Inc. & Copelco 13,745 6/1/02
611 5/1/98 0.25 Sq. Ft. Eckerd 10,908 2/17/17
- ------------------------------------------------------------------------------------------------------------------------------------
612 4/23/98 0.16 Sq. Ft. In Stereo, LLC 3,195 3/31/99
613 11/12/97 228.26 Unit
614 3/21/98 0.10 Sq. Ft. Piedmont Industries 17,153 8/14/99
615 12/22/97 285.00 Unit
616 5/1/98 0.25 Sq. Ft. Rite Aid of Pennsylvania, Inc. 10,004 2/28/17
- ------------------------------------------------------------------------------------------------------------------------------------
617 5/1/98 0.25 Sq. Ft. Westbrook Maine CVS, Inc. 8,775 1/31/18
618 9/1/97 0.37 Sq. Ft. Distributor Benefits 2,117 3/31/99
619 2/25/98 175.00 Unit
620 1/16/98 0.10 Sq. Ft. Cortez & Iverson 19,172 7/31/01
621 7/15/97 0.29 Sq. Ft. Grenhill Development 2,302 7/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
622 1/6/98 0.17 Sq. Ft. Save-A-Lot 25,114 3/31/09
623 11/1/97 242.00 Unit
624 0 0.10 Sq. Ft. Warehouse Specialists, Inc. 97,000 3/1/13
625 0 0.05 Sq. Ft. Warehouse Specialists, Inc. 124,800 3/1/13
626 7/30/97 14.29 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
627 1/14/98 175.00 Unit
628 12/1/97 274.00 Unit
629 3/30/98 237.00 Unit
630 11/26/97 268.00 Unit
631 11/4/97 0.19 Sq. Ft. Inge Lisa Weber 1,983 6/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
632 1/1/98 0.15 Sq. Ft. Marimon Business Machines 10,575 7/31/99
633 10/1/97 200.00 Unit
634 9/20/97 202.07 Unit
635 11/1/97 0.15 Sq. Ft. Hardees 9,257 8/31/98
636 2/25/98 0.15 Sq. Ft. Tinter, Inc. 36,519 5/31/00
- ------------------------------------------------------------------------------------------------------------------------------------
637 11/25/97 256.00 Unit
638 12/31/97 250.00 Unit
639 9/9/97 308.00 Unit
640 9/24/97 250.00 Unit
641 9/23/97 250.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
642 7/21/97 11.68 Unit
643 9/1/97 250.00 Unit
644 1/1/98 0.28 Sq. Ft. Food City (Shadow) NAV NAV
645 8/6/97 193.00 Unit
646 12/1/97 0.13 Sq. Ft. VNA of New Jersey 8,960 9/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
647 8/1/97 250.00 Unit
648 10/1/97 285.00 Unit
649 3/1/98 0.29 Sq. Ft. Physiotherapy Rehabilitation 12,074 4/1/99
650 1/31/98 254.00 Unit
651 5/1/98 0.45 Sq. Ft. Sears, Roebuck and Co. 12,410 1/12/18
- ------------------------------------------------------------------------------------------------------------------------------------
652 2/11/98 0.20 Sq. Ft. Pier 1 Imports 9,032 3/31/05
653 5/1/98 0.20 Sq. Ft. Sunbelt Rentals 8,750 12/14/17
654 1/19/98 308.00 Unit
655 10/31/97 413.00 Unit
656 1/1/98 356.26 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
657 1/28/98 0.36 Sq. Ft. Clementina Refinery 12,089 1/29/08
658 5/1/98 0.25 Sq. Ft. United States Postal Service 5,173 9/10/17
659 10/23/97 281.00 Unit
660 5/16/97 289.00 Unit
661 3/1/98 250.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2nd Largest Tenant 3rd Largest Tenant
--------------------------------------------------------- -------------------------------------------------------------
Tenant Tenant
Control Area Leased Lease Area Leased Lease Control
No. Tenant Name (Sq. Ft.) Exp Date Tenant Name (Sq. Ft.) Exp Date No.
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
592 592
593 593
594 594
595 595
596 Chair Hut 2,540 12/15/98 JDC Bicycles 2,254 1/31/98 596
- ------------------------------------------------------------------------------------------------------------------------------------
597 Rose Auto 6,600 5/1/98 Sherwin Williams 5,250 9/1/02 597
598 598
599 599
600 Gianetta's Cucina Italiana 2,382 10/31/00 Reminisce with Kathy 2,275 5/31/98 600
601 601
- ------------------------------------------------------------------------------------------------------------------------------------
602 602
603 603
604 604
605 605
606 606
- ------------------------------------------------------------------------------------------------------------------------------------
607 Ace Hardware 8,493 4/30/01 Goodyear Tire & Rubber 5,266 1/17/99 607
608 608
609 609
610 National Equipment Rental 13,138 10/1/02 610
611 611
- ------------------------------------------------------------------------------------------------------------------------------------
612 Hwang's School of Tae Kwan Do 1,715 8/31/99 Royal Beauty Supply 1,640 4/30/02 612
613 613
614 Viromed 12,459 6/14/02 Longleaf Industries 3,738 6/1/02 614
615 615
616 616
- ------------------------------------------------------------------------------------------------------------------------------------
617 617
618 High Country Insurance 2,107 4/30/00 Garraa 2,078 4/30/00 618
619 619
620 Poly-Tainer, Inc. 18,773 3/14/01 620
621 Security Life 2,283 4/30/98 Lincoln Title 2,085 5/31/00 621
- ------------------------------------------------------------------------------------------------------------------------------------
622 CVS 9,750 3/31/99 622
623 623
624 624
625 625
626 626
- ------------------------------------------------------------------------------------------------------------------------------------
627 627
628 628
629 629
630 630
631 Jan Maclean 1,749 10/31/00 Doc Exchange 1,734 11/30/98 631
- ------------------------------------------------------------------------------------------------------------------------------------
632 Renick Computer Products 6,862 10/31/00 Sun Drilling Products 6,375 1/31/99 632
633 633
634 634
635 Dean Witter Reynolds, Inc. 4,721 5/31/00 Moore-Norman Hospice 2,383 7/31/00 635
636 636
- ------------------------------------------------------------------------------------------------------------------------------------
637 637
638 638
639 639
640 640
641 641
- ------------------------------------------------------------------------------------------------------------------------------------
642 642
643 643
644 Famous Sam's 6,000 3/31/06 98 Cent Store 4,400 12/31/00 644
645 645
646 Crates Beverage 3,550 6/30/98 WAWA, Inc. 2,700 6/30/99 646
- ------------------------------------------------------------------------------------------------------------------------------------
647 647
648 648
649 NMM Liquors 2,667 2/28/02 Butler & Co 2,570 2/1/02 649
650 650
651 651
- ------------------------------------------------------------------------------------------------------------------------------------
652 652
653 653
654 654
655 655
656 656
- ------------------------------------------------------------------------------------------------------------------------------------
657 657
658 658
659 659
660 660
661 661
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
Control
No. Property Name Address
==========================================================================================================================
<S> <C> <C>
662 325 North Howard Street 325 North Howard Street
663 Pikesville Professional Building 7 Church Lane
664 Washington Place 944 Old Washington Road
665 1416-1430 S. Main Street 1416-1430 S. Main Street
666 Hodges Warehouse and Corporate Offices (Hodges I) 4401 South 72nd East Avenue
- --------------------------------------------------------------------------------------------------------------------------
667 Commerce Square Shopping Center 203 Commerce Avenue
668 Villa Apartments 1111 7Th Street South
669 Magnolia 2100 River View Rd.
670 Blockbuster Video Store 6324 Custer Road
671 Creamery Hills 355 Creamery Road
- --------------------------------------------------------------------------------------------------------------------------
672 13348 Newport Boulevard (Walgreen - Tustin) 13348 Newport Boulevard
673 Wells Court 1856 Wells Drive
674 Logan Square Shopping Center SWC of Logan Drive and Memorial Pkwy (Highway 231)
675 2486 Morris Avenue 2486 Morris Avenue
676 Branford Apartments 12850 Bradford Street
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial
No. City State Code Groups Balance ($) Balance ($) Balance Pool Balance
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
662 Glendale CA 91206 $ 775,000 $ 773,913.25 0.02% 99.75%
663 Pikesville MD 21208 770,000 767,358.36 0.02 99.77
664 Thomson GA 30824 765,000 764,538.46 0.02 99.79
665 Milpitas CA 95035 760,000 758,402.60 0.02 99.81
666 Tulsa OK 74145 Group K 750,000 747,776.36 0.02 99.83
- ------------------------------------------------------------------------------------------------------------------------------------
667 La Grange GA 30240 750,000 747,308.05 0.02 99.85
668 Minneapolis MN 55415 740,000 737,006.36 0.02 99.88
669 Tunica MS 38646 725,000 722,827.14 0.02 99.90
670 Plano TX 75023 700,000 695,387.84 0.02 99.92
671 Harford NY 13784 608,000 606,231.70 0.02 99.93
- ------------------------------------------------------------------------------------------------------------------------------------
672 Tustin CA 92680 500,000 494,859.06 0.01 99.95
673 Atlanta GA 30311 490,000 490,000.00 0.01 99.96
674 Huntsville AL 35802 450,000 448,384.84 0.01 99.98
675 Bronx NY 10468 440,000 438,203.46 0.01 99.99
676 Arleta CA 91331 410,000 408,723.18 0.01 100.00
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,475,264,082.79 100.00%
================== ======
<CAPTION>
Interest Original Remaining
Control Mortgage Administrative Accrual Amortization Interest-Only Interest-Only
No. Rate (%) Cost Rate (%) Method Type Period (Mos.) Period (Mos.)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
662 7.1330% 0.0962% Actual/360 Amortizing Balloon 0 0
663 7.5200 0.0962 30/360 Amortizing Balloon 0 0
664 8.5200 0.0962 Actual/360 Amortizing Balloon 0 0
665 7.4380 0.0962 Actual/360 Amortizing Balloon 0 0
666 7.7100 0.0962 30/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
667 7.6250 0.0962 Actual/360 Amortizing Balloon 0 0
668 6.7840 0.0962 Actual/360 Amortizing Balloon 0 0
669 8.2500 0.0962 Actual/360 Amortizing Balloon 0 0
670 8.3750 0.0962 Actual/360 Amortizing Balloon 0 0
671 7.6500 0.0962 Actual/360 Fully Amortizing 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
672 7.0600 0.0962 30/360 Fully Amortizing 0 0
673 7.5000 0.0962 Actual/360 Fully Amortizing 0 0
674 7.6250 0.0962 Actual/360 Amortizing Balloon 0 0
675 7.7500 0.0962 Actual/360 Amortizing Balloon 0 0
676 7.3060 0.0962 Actual/360 Amortizing Balloon 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
7.2569%
======
<CAPTION>
Original Remaining
Term to Term to Original Remaining
Control Maturity Maturity Amortization Amortization Origination Maturity Balloon
No. (Mos.) (Mos.) Term (Mos.) Term (Mos.) Date or ARD Balance ($) Property Type
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
662 120 118 360 358 2/10/98 3/1/08 $ 678,519 Multifamily
663 120 117 300 297 1/14/98 2/1/08 614,152 Office
664 300 299 360 359 3/27/98 4/1/23 361,569 Multifamily - Section 42
665 120 118 300 298 2/18/98 3/1/08 616,433 Retail - Unanchored
666 180 179 180 179 3/13/98 4/1/13 - Industrial
- -------------------------------------------------------------------------------------------------------------------------------
667 120 117 300 297 1/26/98 2/1/08 611,094 Retail - Anchored
668 120 117 300 297 1/8/98 2/1/08 587,651 Multifamily
669 120 115 360 355 11/6/97 12/1/07 652,084 Multifamily
670 120 113 300 293 9/5/97 10/1/07 583,059 Retail - Anchored
671 360 356 360 356 12/18/97 1/1/28 65,346 Multifamily - Section 42
- -------------------------------------------------------------------------------------------------------------------------------
672 171 168 171 168 1/29/98 5/1/12 - CTL
673 300 300 300 300 4/7/98 5/1/23 35,191 Multifamily - Section 42
674 120 117 300 297 1/26/98 2/1/08 366,658 Retail - Anchored
675 120 114 360 354 10/22/97 11/1/07 391,010 Multifamily
676 120 116 360 356 12/31/97 1/1/08 360,315 Multifamily
- -------------------------------------------------------------------------------------------------------------------------------
155 152 319 316
=== === === ===
<CAPTION>
Annual
Control Debt Net Appraised
No. Prepayment Provisions Service ($) Cash Flow ($) DSCR (x) Value ($)
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
662 L(4),D(5.83),O(.17) $ 62,706 $ 79,277 1.26x $ 1,000,000
663 L(4),YM1%(4),O(2) 68,403 87,370 1.28 1,100,000
664 L(15),O(10) 70,716 92,363 1.31 900,000
665 L(4),D(5.83),O(.17) 67,029 116,532 1.74 1,360,000
666 L(7),D(7.75),O(.25) 84,509 106,367 1.26 1,200,000
- ------------------------------------------------------------------------------------------------------------------------------
667 L(4),D(5.75),O(.25) 67,243 92,162 1.37 1,000,000
668 L(4),D(5.83),O(.17) 61,544 85,352 1.39 1,055,000
669 L(4),YM1%(5.5),O(.5) 65,360 85,353 1.31 935,000
670 L(4),D(5.83),O(.17) 66,933 88,130 1.32 1,100,000
671 L(2.33),D(27.417)O(.25) 51,766 64,308 1.24 780,000
- ------------------------------------------------------------------------------------------------------------------------------
672 L(7),D(6.25),O(1) 55,743 55,800 NAP 750,000
673 L(13),O(12) 43,453 110,944 2.55 1,625,000
674 L(4),D(5.75),O(.25) 40,346 51,974 1.29 600,000
675 L(4),YM1%(5.75),O(.25) 37,827 51,483 1.36 590,000
676 L(4),D(5.83),O(.17) 33,750 47,816 1.42 510,000
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten
Hospitality Sq. Ft., Loan per
Cut-off Scheduled Average Units Sq. Ft., Units
Control Appraisal Date Maturity Date Daily Year Year Bed, Pad Bed, Pad Occupancy
No. Year LTV (%) LTV (%) Rate ($) Built Renovated or Room or Room ($) Percentage (%)
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
662 1997 77.4% 67.9% 1965 N/A 18 Units $ 43,055.56 100.0%
663 1997 69.8 55.8 1964 1995 13,420 Sq. Ft. 57.38 100.0
664 1998 85.0 40.2 1996 N/A 42 Units 18,214.29 100.0
665 1997 55.8 45.3 1988 1995 14,071 Sq. Ft. 54.01 100.0
666 1998 62.3 0.0 1970 N/A 52,800 Sq. Ft. 14.20 100.0
- --------------------------------------------------------------------------------------------------------------------------------
667 1997 74.7 61.1 1985 1996 14,079 Sq. Ft. 53.27 100.0
668 1997 69.9 55.7 1964 N/A 47 Units 15,744.68 100.0
669 1997 77.3 69.7 1994 N/A 21 Units 34,523.81 100.0
670 1997 63.2 53.0 1997 N/A 6,500 Sq. Ft. 107.69 100.0
671 1997 77.7 8.4 1997 N/A 24 Units 25,333.33 100.0
- --------------------------------------------------------------------------------------------------------------------------------
672 1997 NAP 0.0 1997 N/A 1,950 Sq. Ft. 256.41 100.0
673 1998 30.2 2.2 1971 1996 62 Units 7,903.23 95.2
674 1997 74.7 61.1 1974 1996 6,800 Sq. Ft. 66.18 100.0
675 1997 74.3 66.3 1920 1990 20 Units 22,000.00 95.0
676 1997 80.1 70.7 1978 N/A 28 Units 14,642.86 100.0
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Tenant
------------------------------------------------------------------------------
Tenant
Control Rent Roll Underwriting Area Leased Lease
No. Date Reserves ($) per Tenant Name (Sq. Ft.) Exp Date
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
662 1/30/98 $250.00 Unit
663 3/10/98 0.22 Sq. Ft. Multi-Properties, Inc. (Unit 0019-0025) 4,726 12/31/00
664 2/25/98 200.00 Unit
665 1/31/98 0.19 Sq. Ft. M2 Collision Centers 13,371 6/30/02
666 2/23/98 0.10 Sq. Ft. Port City Properties 52,800 5/1/13
- ------------------------------------------------------------------------------------------------------------------------------------
667 3/10/98 0.15 Sq. Ft. Cato Plus 5,698 3/1/01
668 12/12/97 261.00 Unit
669 7/31/97 227.00 Unit
670 8/27/97 0.05 Sq. Ft. Blockbuster Video Store 6,500 7/24/07
671 11/30/97 150.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
672 5/1/98 - Sq. Ft. Walgreen Co. 1,950 3/31/32
673 1/31/98 250.00 Unit
674 2/18/98 0.10 Sq. Ft. New China Restaurant 2,800 5/15/02
675 10/21/97 264.00 Unit
676 10/6/97 295.00 Unit
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2nd Largest Tenant 3rd Largest Tenant
--------------------------------------------------------- -------------------------------------------------------------
Tenant Tenant
Control Area Leased Lease Area Leased Lease Control
No. Tenant Name (Sq. Ft.) Exp Date Tenant Name (Sq. Ft.) Exp Date No.
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
662 662
663 Blaxberg, Neal (Unit 0012 &11A) 1,172 6/30/01 CAM-Tour Corporation (Unit 0008) 1,160 1/16/99 663
664 664
665 Enterprise Rent-A-Car 700 7/31/00 665
666 666
- ------------------------------------------------------------------------------------------------------------------------------------
667 Shoe City 2,800 2/3/00 Fantastic Sams 1,700 8/8/02 667
668 668
669 669
670 670
671 671
- ------------------------------------------------------------------------------------------------------------------------------------
672 672
673 673
674 Hair Care 1,400 5/30/01 Super Rose Nails 1,400 8/15/01 674
675 675
676 676
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Total/Weighted Average:
(1) The Mortgage Loan provides for changes in the amount of its Monthly
Payments at specified times in the future which coincide with rent
increases on the underlying Credit Lease. Refer to the sheet "step" in the
file named "FULBBA.XLS" contained in the back cover of the Prospectus
Supplement for detailed information on Monthly Payments for the Mortgage
Loan.
(2) The Annual Debt Service, hence the DSCR, reflects the annualized monthly
principal and interest during the period in which the Mortgage Loan is
amortizing.
(3) The Mortgage Loan provides for changes in the amount of its Monthly
Payments at specified times in the future which coincide with rent
increases on the underlying property. Refer to the sheet "step" in the
file named "FULBBA.XLS" contained in the back cover of the Prospectus
Supplement for detailed information on Monthly Payments for the Mortgage
Loan.
12
<PAGE>
First Union / Lehman Brothers / Bank of America Commercial Mortgage Trust
1998-C2
<TABLE>
<CAPTION>
Original Remaining
Control Interest-Only Interest-Only Amortization Cut-off Date
No. Property Name Period (months) Period (months) Type Balance ($)
<S> <C> <C> <C> <C> <C>
1 IBM Corporate Office Complex Fully Amortizing $ 178,378,814.33
2 Broadmoor Austin 36 35 ARD 154,000,000.00
3 Fox Valley Mall 108 105 ARD 85,527,649.00
4 Hawthorn Center 132 129 ARD 77,863,877.00
5 First Union Plaza 60 60 Balloon 64,000,000.00
6 Oakwood Village Fully Amortizing 63,766,163.27
7 Phillips Place Balloon 25,328,344.54
8 Prince George's Metro Center ARD 24,500,000.00
9 Musselman Portfolio (Roll-Up) Balloon 23,892,525.17
10 Ohio Edison Office Building ARD 22,468,036.24
11 The Ridge Gardens Apartments Balloon 22,168,011.77
12 Holiday Inn Downtown Balloon 21,840,552.21
13 Peach Tree Apartments 2 0 Balloon 21,172,007.68
14 St. Andrews Place Balloon 20,942,733.05
15 Hunt Club Balloon 20,806,341.65
16 100 West Chestnut St. Balloon 20,000,000.00
17 Hickory Ridge Commons Shopping Center ARD 17,952,727.94
18 Holly Hall 23 13 ARD 17,697,000.00
19 1066 Third Avenue (Royale Retail Condominiums) Balloon 17,344,007.86
20 Richardson Highlands Balloon 16,847,577.42
21 Burke Centre Balloon 16,446,273.67
22 Stallings Portfolio (Loan Level) ARD 16,277,350.35
23 Brinker Trust 11 Balloon 15,391,930.50
24 Brinker Trust 9 Balloon 15,373,841.14
25 Quince Orchard I Apartments 2 0 Balloon 15,161,953.80
26 Levittown Trace Apartments ARD 14,522,217.09
27 Chester Mall Balloon 14,488,711.07
28 Peachtree Walk Balloon 14,452,038.73
29 Statesboro Mall Balloon 14,288,507.76
30 Days Inn & Suites Historic Savannah Balloon 13,770,454.32
31 Shaws Sainsbury Fully Amortizing 13,760,326.29
32 Sandy Mall Balloon 13,738,706.98
33 Consolidated Cap Care Properties (8) Fully Amortizing 13,404,516.00
34 Stone Creek / Waters Landing Balloon 13,365,532.22
35 Temple City Square Balloon 13,269,824.24
36 Hechinger Commons Shopping Center Balloon 13,230,217.88
37 Steeplechase / Largo Balloon 13,205,943.83
38 Sandy Springs Plaza Balloon 13,189,312.81
39 The Plantation at Lafayette Balloon 12,750,000.00
40 North Atherton Place Fully Amortizing 12,469,243.47
41 Woodholme Medical Building Balloon 12,443,167.58
42 GTE Stemmons Crossing Balloon 12,400,000.00
43 Highland Pinetree Apartments ARD 12,389,735.13
44 Westmont Business Park (Roll-up) Balloon 12,218,749.98
45 Wyndham Garden Hotel Balloon 12,204,210.32
46 Hulen Bend Center ARD 12,168,124.07
47 Cineplex Odeon Movie Theater Fully Amortizing 12,124,123.68
48 Rose Hill II Balloon 11,980,750.16
49 Golf Glen Mart Plaza ARD 11,863,983.65
50 Clearwater Crossing Shopping Center ARD 11,569,846.73
51 Rivercrest Village Apartments Balloon 11,564,174.06
52 Super K-Mart Center Fully Amortizing 11,283,800.93
53 Quince Orchard II Apartments 2 0 Balloon 10,979,483.59
54 Market at Wolfcreek Balloon 10,947,916.37
55 Brinker Trust 5 Balloon 10,671,795.87
56 Brinker Trust 7 Balloon 10,585,153.28
57 Northwind Balloon 10,585,106.73
58 Brinker Trust 2 Balloon 10,513,286.94
59 Concorde Centre II Office Building Balloon 10,500,000.00
<CAPTION>
Balloon/ Original
Control Monthly ARD Gross Amortization Seasoning
No. P&I ($) Balance ARD Maturity Rate (%) Term (months) (months)
<S> <C> <C> <C> <C> <C> <C> <C>
1 $ 1,561,831.11 - 10/1/13 6.8300% 188 3
2 Step* $ 76,967,566 4/10/11 4/10/23 7.0400 190 1
3 Interest-Only 85,527,649 11/10/06 11/10/31 6.7500 0 6
4 Interest-Only 77,863,879 11/10/08 11/10/33 6.7500 0 6
5 415,102.78 55,463,657 5/1/13 6.7500 360 0
6 441,378.01 6,241,605 12/1/27 7.3600 360 5
7 165,094.21 21,988,816 4/1/08 6.7900 360 1
8 162,999.11 18,754,361 5/1/13 11/1/14 7.0000 360 0
9 180,051.65 19,586,097 1/1/08 7.6720 300 4
10 150,903.88 20,740,744 3/1/05 3/1/28 7.0800 360 2
11 149,609.90 18,202,030 1/1/10 7.1100 360 4
12 177,903.72 19,267,850 1/1/03 7.5500 240 4
13 146,423.13 16,505,912 3/1/13 7.3750 360 4
14 138,025.22 18,247,894 2/1/08 6.8800 360 3
15 135,991.59 17,815,347 2/1/08 6.8000 360 3
16 131,051.84 17,378,274 5/1/08 6.8500 360 0
17 120,965.75 15,732,230 2/1/08 2/1/28 7.1000 360 3
18 131,585.62 16,353,456 7/1/07 7/1/27 8.1400 360 10
19 117,403.24 15,226,011 1/1/08 7.1400 360 4
20 116,160.25 15,638,434 1/1/05 7.3260 360 4
21 110,662.85 12,664,341 1/1/13 7.0800 360 4
22 110,311.64 14,284,591 3/1/08 3/1/28 7.1700 360 2
23 Step* 6,674,050 11/1/17 7.1560 316 5
24 Step* 6,610,082 11/1/17 7.1560 316 5
25 104,858.30 11,820,413 3/1/13 7.3750 360 4
26 98,536.04 11,217,049 2/1/13 2/1/28 7.1700 360 3
27 99,013.93 12,734,965 4/1/08 7.2600 360 1
28 96,468.86 12,641,824 1/1/08 7.0000 360 4
29 96,100.57 12,507,067 4/1/08 7.1000 360 1
30 100,548.92 11,159,915 3/1/08 7.3400 300 2
31 Step* - 2/1/23 7.1250 301 4
32 91,386.77 12,654,243 4/1/05 6.9900 360 1
33 110,828.06 534,562 1/1/18 7.7500 240 4
34 87,357.98 11,444,184 2/1/08 6.8000 360 3
35 91,405.09 11,687,500 4/1/08 7.3400 360 1
36 87,043.07 10,718,849 3/1/11 6.8750 360 2
37 86,314.90 11,307,537 2/1/08 6.8000 360 3
38 88,374.69 11,533,594 4/1/08 7.0625 360 1
39 89,499.33 11,384,253 11/1/07 7.5400 360 0
40 88,666.62 - 3/1/23 7.0400 300 2
41 90,924.24 10,589,019 12/1/07 7.6000 324 5
42 83,582.95 10,855,112 5/1/08 7.1300 360 0
43 82,081.54 10,802,294 4/1/08 4/1/28 6.9500 360 1
44 83,732.84 11,323,991 2/1/05 7.2700 360 3
45 89,255.38 9,896,587 2/1/08 7.3400 300 3
46 82,234.84 10,671,302 2/1/08 2/1/28 7.1300 360 3
47 93,793.98 - 2/1/23 7.9900 299 2
48 80,846.22 10,327,564 3/1/08 7.1250 360 2
49 82,799.48 11,034,075 1/1/05 1/1/28 7.4500 360 4
50 78,425.57 8,932,661 2/1/13 2/1/28 7.1600 360 3
51 79,904.97 10,205,195 1/1/08 7.3480 360 4
52 94,734.07 - 7/1/19 8.3400 255 1
53 75,932.83 8,559,715 3/1/13 7.3750 360 4
54 78,400.40 8,637,733 10/1/12 7.6825 360 7
55 Step* 4,627,057 11/1/17 7.1560 316 5
56 Step* 4,592,941 11/1/17 7.1560 316 5
57 71,414.16 9,278,428 3/1/08 7.1250 360 2
58 Step* 4,541,766 11/1/17 7.1560 316 5
59 72,199.14 9,239,656 5/1/08 7.3300 360 0
<CAPTION>
Remaining Term Remaining LTV at
Control to ARD or Maturity Lockout Cut-off Date ARD or
No. (months) Months DSCR (x) LTV (%) Maturity (%)
<S> <C> <C> <C> <C> <C>
1 185 25 1.32x 63.7% 0.0
2 155 25 1.50 76.2 38.1%
3 102 25 1.91 61.5 61.5
4 126 25 2.00 58.8 58.8
5 180 96 1.40 61.0 52.8
6 355 43 1.30 79.7 7.8
7 119 47 1.29 78.6 68.3
8 180 48 1.26 72.1 55.2
9 116 56 1.41 68.2 55.9
10 82 34 1.42 74.2 68.5
11 140 44 1.37 79.7 65.5
12 56 49 1.53 55.0 48.5
13 178 68 1.29 78.4 61.1
14 117 45 1.33 77.6 67.6
15 117 24 1.21 79.6 68.1
16 120 60 1.21 76.5 66.5
17 117 45 1.25 78.2 68.6
18 110 14 1.22 80.4 74.3
19 116 32 1.21 74.4 65.4
20 80 32 1.22 78.4 72.7
21 176 56 1.51 66.6 51.3
22 118 34 1.44 74.7 65.5
23 234 24 NAP NAP 43.0
24 234 24 NAP NAP 43.0
25 178 68 1.26 74.9 58.4
26 177 33 1.27 79.8 61.6
27 119 47 1.40 74.7 65.6
28 116 32 1.26 72.3 63.2
29 119 47 1.41 71.8 62.9
30 118 0 1.40 74.4 60.3
31 297 92 NAP NAP 0.0
32 83 47 1.29 72.3 66.6
33 236 80 2.00 55.4 2.2
34 117 24 1.27 79.8 68.3
35 119 47 1.29 79.9 70.4
36 154 46 1.43 71.9 58.3
37 117 24 1.30 79.8 68.3
38 119 47 1.30 79.9 69.9
39 114 48 1.21 75.0 67.0
40 298 118 1.42 75.1 0.0
41 115 31 1.40 71.5 60.9
42 120 36 1.27 71.3 62.4
43 119 47 1.33 78.2 68.2
44 81 45 1.31 72.6 67.3
45 117 57 1.40 56.8 46.0
46 117 45 1.21 74.9 65.7
47 297 142 1.25 74.4 0.0
48 118 24 1.26 79.9 68.9
49 80 44 1.20 78.6 73.1
50 177 81 1.31 78.7 60.8
51 116 44 1.24 79.8 70.4
52 254 95 NAP NAP 0.0
53 178 68 1.25 74.9 58.4
54 173 89 1.44 71.4 56.3
55 234 24 NAP NAP 43.0
56 234 24 NAP NAP 43.0
57 118 58 1.27 79.7 69.9
58 234 24 NAP NAP 43.0
59 120 48 1.30 73.4 64.6
</TABLE>
* Refer to the sheet "step" in the file named "FULBBA.XLS" contained in the
back cover of the Preliminary Prospectus Supplement for detailed
information on Monthly Payments for the Mortgage Loan.
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Control Interest-Only Interest-Only Amortization Cut-off Date
No. Property Name Period (months) Period (months) Type Balance ($)
<S> <C> <C> <C> <C> <C>
60 Sundance West Apartments Balloon $ 10,092,322.04
61 Old Farm Balloon 9,968,198.82
62 River Reach Fully Amortizing 9,932,082.23
63 Maplewood Center ARD 9,745,742.13
64 Health Care South(6 Prop) Balloon 9,717,397.08
65 Spinnaker Reach Apartments Fully Amortizing 9,687,495.88
66 Inverrary 441 Apartments Balloon 9,586,461.99
67 Eastland Plaza Balloon 9,565,038.58
68 Woodhaven Apartments 23 13 ARD 9,530,000.00
69 Best Western Greenfield Inn Balloon 9,265,237.21
70 Hampton Inn Pensacola Beach Balloon 9,250,000.00
71 Plaza LaFayette Balloon 9,242,654.04
72 The Broun Portfolio Consolidation Balloon 9,237,003.50
73 North Willow Commons Shopping Center ARD 9,205,383.81
74 International Club Apartments Balloon 9,186,994.22
75 Village Green Apartments Balloon 9,177,123.74
76 Liberty Gardens Balloon 9,136,905.79
77 Park Forest Balloon 8,970,695.39
78 Kings Harbor Multicare Center Fully Amortizing 8,951,209.01
79 Gateway Shopping Center Balloon 8,842,857.83
80 Briarcliffe Lakeside Apartments ARD 8,776,084.48
81 Daytona Beach Hilton Oceanfront Resort ARD 8,281,860.32
82 Valley Manor Balloon 8,174,179.08
83 North Oaks Plaza ARD 8,093,897.78
84 The Morrison Building Balloon 8,050,981.33
85 Sandstone Apartments 23 13 ARD 7,983,000.00
86 Innsbrook Village Balloon 7,924,512.91
87 1616 Walnut Street Balloon 7,794,129.65
88 Century Village Apartments Balloon 7,774,993.83
89 Hampton Inn (Louisville) Balloon 7,771,500.87
90 Hampton Inn & Suites - Pineville Balloon 7,766,189.12
91 La Villita Apartments Balloon 7,765,332.63
92 White Marlin Mall, Phase I Balloon 7,743,942.22
93 Claremont Retirement Village Balloon 7,589,517.39
94 Brookside West Apartments Balloon 7,579,696.26
95 Harris Boulevard I Fully Amortizing 7,400,000.00
96 Scott Mountain by the Brook Balloon 7,377,558.77
97 Classic Portfolio (Roll-up) ARD 7,201,769.35
98 Oak Hills Medical Plaza ARD 7,181,443.42
99 North Point - Springhouse Phase I Balloon 7,171,377.96
100 Kensington Club Apartments Balloon 7,131,286.58
101 Village Green Office Park Balloon 7,096,616.22
102 West Georgia Commons Balloon 7,094,294.06
103 Colleyville Court ARD 7,081,449.20
104 Tlaquepaque Arts & Crafts Village ARD 7,055,984.78
105 Innsbrook Shoppes Balloon 7,000,000.00
106 Glen Harbor Plaza Balloon 6,990,558.40
107 Hulen Fashion Center ARD 6,968,150.86
108 Decatur Crossing Shopping Center Balloon 6,943,380.22
109 Montgomery Street Fully Amortizing 6,900,000.00
110 City Place Balloon 6,892,159.81
111 Sunscape West Apartments ARD 6,839,980.49
112 Orangebrook Manor Apartments Balloon 6,838,693.78
113 Trinity Place Apartments Balloon 6,794,491.45
114 Le Med Apartments ARD 6,744,467.08
115 Pleasant Hills Villas Balloon 6,732,378.75
116 Westminster Plaza Balloon 6,690,963.03
117 Legacy Apartments Balloon 6,683,917.14
118 Valley Breeze Apartments Balloon 6,671,562.47
119 City Center Building ARD 6,656,983.36
120 Dublin Mall Balloon 6,594,695.89
121 Fountain Court Balloon 6,592,324.44
<CAPTION>
Balloon/ Original
Control Monthly ARD Gross Amortization Seasoning
No. P&I ($) Balance ARD Maturity Rate (%) Term (months) (months)
<S> <C> <C> <C> <C> <C> <C> <C>
60 $ 68,214.00 $ 8,856,500 1/1/08 7.1250% 360 4
61 67,878.82 8,764,220 1/1/08 7.2000 360 4
62 69,128.75 1,024,898 3/1/28 7.4400 360 2
63 67,657.93 8,610,701 1/1/08 1/1/28 7.3960 357 1
64 81,666.44 6,898,013 12/1/07 7.9500 240 5
65 67,624.66 1,010,991 3/1/28 7.4700 360 2
66 64,579.81 8,399,795 3/1/08 7.1100 360 2
67 66,304.81 8,452,851 12/1/07 7.3750 360 5
68 70,860.08 8,806,490 7/1/07 7/1/27 8.1400 360 10
69 67,761.23 5,982,702 2/1/13 7.3400 300 3
70 65,731.55 7,415,934 5/1/08 7.0600 300 0
71 62,537.63 7,561,277 4/1/11 7.1600 360 1
72 62,318.96 8,096,742 3/1/08 7.1250 360 2
73 61,469.42 7,059,774 2/1/13 2/1/28 7.0100 360 3
74 61,826.94 8,047,686 3/1/08 7.1000 360 2
75 63,824.51 8,119,184 1/1/08 7.4200 360 3
76 61,182.74 7,993,399 3/1/08 7.0500 360 2
77 60,361.55 6,682,287 1/1/13 7.0800 360 4
78 74,664.64 365,560 2/1/18 7.8900 240 3
79 70,600.01 7,815,335 6/1/07 8.6100 330 11
80 57,956.81 7,650,822 2/1/08 2/1/28 6.9000 360 3
81 59,886.06 6,689,586 2/29/08 2/28/23 7.2300 300 2
82 55,938.46 6,341,962 1/1/13 7.2500 360 4
83 56,220.97 5,116,516 4/1/18 4/1/28 7.4250 360 1
84 58,286.68 6,404,801 12/1/07 7.2000 300 5
85 59,357.40 7,376,937 7/1/07 7/1/27 8.1400 360 10
86 53,743.19 6,960,150 1/1/08 7.1590 360 4
87 54,165.35 6,880,415 4/1/08 7.4300 360 1
88 52,729.16 6,828,828 1/1/08 7.1590 360 4
89 57,641.31 6,331,846 2/1/08 7.5000 300 3
90 59,557.21 6,403,372 1/1/08 7.8750 300 4
91 53,771.69 6,863,780 11/1/07 7.3560 360 6
92 52,816.11 6,803,099 4/1/08 7.2400 360 1
93 51,587.90 6,665,513 3/1/08 7.2000 360 2
94 50,562.99 6,625,083 2/1/08 7.0000 360 3
95 57,817.15 252,508 5/1/18 7.1000 240 0
96 51,438.18 6,525,409 1/1/08 7.4400 360 4
97 49,645.50 6,347,918 2/1/08 2/1/28 7.3300 360 3
98 48,921.50 6,310,886 2/1/08 2/1/28 7.2100 360 3
99 48,945.88 6,209,383 12/1/07 7.2150 360 5
100 48,146.75 6,252,451 2/1/08 7.1200 360 3
101 51,601.86 6,349,079 11/1/07 7.8630 360 6
102 47,714.27 6,209,802 4/1/08 7.1000 360 1
103 47,857.98 6,210,345 2/1/08 2/1/28 7.1300 360 3
104 49,447.89 6,245,703 3/1/08 3/1/28 7.5100 360 2
105 48,228.05 5,443,635 5/1/13 7.3500 360 0
106 47,942.40 6,568,393 3/1/04 7.2900 360 2
107 51,619.17 5,094,442 2/1/09 2/1/21 7.1200 276 3
108 47,643.31 6,123,216 11/1/07 7.2630 360 6
109 46,184.25 656,458 5/1/28 7.0600 360 0
110 51,080.19 5,609,345 4/1/08 7.5200 300 1
111 45,389.35 5,969,833 3/1/08 3/1/28 6.9600 360 2
112 45,798.00 5,982,969 3/1/08 7.0510 360 2
113 45,514.91 5,843,452 4/1/08 7.0600 360 1
114 44,907.92 5,888,113 4/1/08 4/1/28 7.0000 360 1
115 45,521.57 5,904,970 2/1/08 7.1350 360 3
116 45,887.73 5,889,897 3/1/08 7.2900 360 2
117 47,431.40 5,934,760 2/1/08 7.6270 360 3
118 47,173.54 5,927,801 11/1/07 7.5710 360 6
119 44,140.29 5,809,505 2/1/08 2/1/28 6.9400 360 3
120 44,354.11 5,772,492 4/1/08 7.1000 360 1
121 48,238.06 5,342,060 4/1/08 7.3750 300 1
<CAPTION>
Remaining Term Remaining LTV at
Control to ARD or Maturity Lockout Cut-off Date ARD or
No. (months) Months DSCR (x) LTV (%) Maturity (%)
<S> <C> <C> <C> <C> <C>
60 116 44 1.57x 74.8% 65.6%
61 116 44 1.31 79.8 70.1
62 358 58 1.26 84.9 8.8
63 116 44 1.45 73.3 64.7
64 115 31 1.71 60.3 42.8
65 358 58 1.21 83.5 8.7
66 118 46 1.36 79.9 70.0
67 115 24 1.26 79.7 70.4
68 110 14 1.26 73.3 67.7
69 177 45 1.40 64.3 41.6
70 120 48 2.20 60.9 48.8
71 155 47 1.26 73.9 60.5
72 118 58 1.50 79.5 69.7
73 177 81 1.32 78.7 60.3
74 118 46 1.31 79.9 70.0
75 116 33 1.22 78.3 69.3
76 118 70 1.33 79.8 69.8
77 176 20 1.41 70.4 52.4
78 237 24 2.33 20.8 0.9
79 109 37 1.25 68.0 60.1
80 117 45 1.25 79.8 69.6
81 118 46 1.48 59.2 47.8
82 176 8 1.25 79.4 61.6
83 239 119 1.30 74.9 47.4
84 115 43 1.68 64.9 51.7
85 110 14 1.19 79.8 73.8
86 116 44 1.53 74.8 65.7
87 119 47 1.42 71.5 63.1
88 116 44 1.39 74.8 65.7
89 117 45 1.49 74.7 60.9
90 116 44 1.38 74.5 61.4
91 114 42 1.33 79.2 70.0
92 119 47 1.35 71.7 63.0
93 118 46 1.64 69.0 60.6
94 117 9 1.30 75.8 66.3
95 240 108 1.26 71.7 2.5
96 116 20 1.25 78.5 69.4
97 117 57 1.34 72.0 63.5
98 117 45 1.34 68.4 60.1
99 115 43 1.29 79.7 69.0
100 117 31 1.26 77.9 68.3
101 114 42 1.46 74.7 66.8
102 119 47 1.32 68.5 60.0
103 117 45 1.29 74.8 65.6
104 118 46 1.25 73.5 65.1
105 180 60 1.35 74.9 58.2
106 70 46 1.32 69.9 65.7
107 129 45 1.28 72.6 53.1
108 114 42 1.44 73.9 65.1
109 360 48 1.26 49.3 4.7
110 119 47 1.50 62.7 51.0
111 118 46 1.30 72.0 62.8
112 118 46 1.40 72.1 63.1
113 119 24 1.33 80.9 69.6
114 119 47 1.27 78.9 68.9
115 117 45 1.31 77.4 67.9
116 118 46 1.36 73.5 64.7
117 117 45 1.34 74.0 65.7
118 114 42 1.20 76.5 67.9
119 117 81 1.47 73.2 63.8
120 119 47 1.30 71.7 62.7
121 119 23 1.27 74.9 60.7
</TABLE>
* Refer to the sheet "step" in the file named "FULBBA.XLS" contained in the
back cover of the Preliminary Prospectus Supplement for detailed
information on Monthly Payments for the Mortgage Loan.
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Control Interest-Only Interest-Only Amortization Cut-off Date
No. Property Name Period (months) Period (months) Type Balance ($)
<S> <C> <C> <C> <C> <C>
122 New Market Mall ARD $ 6,584,429.79
123 Highgate Apartments Balloon 6,583,249.29
124 Playa Blanca Apartments ARD 6,582,428.06
125 Minges Brook Mall ARD 6,574,953.93
126 The Addison Balloon 6,555,555.55
127 Carolina Apartments Fully Amortizing 6,547,029.36
128 Holiday Inn Lynchburg Balloon 6,493,025.24
129 PalmTree Plaza Fully Amortizing 6,474,751.79
130 Victoria Apartments Balloon 6,458,862.87
131 Pelham at Hyland Business Center ARD 6,402,356.16
132 Franklin Plaza Balloon 6,395,007.39
133 Cumberland Green Balloon 6,381,293.31
134 Spring Center Balloon 6,350,417.94
135 Rose Hill I Balloon 6,322,891.20
136 Officemax and Best Buy Balloon 6,320,000.00
137 Two Executive Boulevard Balloon 6,295,095.15
138 Green Grove Balloon 6,294,961.98
139 Constantine Village Fully Amortizing 6,276,579.44
140 Q Club Sugarland Fully Amortizing 6,251,342.00
141 Shoppes of Olney Balloon 6,244,629.40
142 United HealthCare Office Bldg 60 56 Balloon 6,200,000.00
143 Linden Court Apartments ARD 6,190,931.25
144 Serra Commons Apartments Balloon 6,177,199.24
145 A & P Grocery Store Fully Amortizing 6,163,226.67
146 540 Atlantic Avenue Balloon 6,123,872.54
147 Maple Leaf Plaza Balloon 6,077,175.58
148 Holiday Inn City Center Balloon 6,073,664.24
149 53, 53-West, and 102 Commerce Center Balloon 5,993,027.80
150 K & K Warehousing - 701 Fourth Avenue Balloon 5,989,329.78
151 Emerald Apartments ARD 5,984,430.12
152 MacArthur Plaza I & II Balloon 5,983,970.74
153 Mount Vernon Balloon 5,982,462.46
154 Evergreen Plaza Balloon 5,982,208.81
155 21 DuPont Circle Balloon 5,795,439.34
156 1-3 Parklands Drive (Parkland Office Park) Balloon 5,792,389.77
157 Payne Ranch Centre ARD 5,785,128.07
158 Leonardine Gardens Fully Amortizing 5,784,398.59
159 Kroger La Grange Balloon 5,774,542.54
160 Park Encino Apartments Balloon 5,727,244.22
161 Wickes Shopping Center Balloon 5,707,136.81
162 Ashby Square West Shopping Center ARD 5,685,607.37
163 Hampton Inn Detroit Metro Airport Balloon 5,678,693.80
164 Commerce Park of Palm Beach County ARD 5,585,217.47
165 Forest Glen Apartments Balloon 5,575,834.45
166 Home - Springhouse Phase II Balloon 5,502,009.30
167 Southside Comfort Inn Balloon 5,493,855.16
168 Mill Park Apartments 23 13 ARD 5,486,000.00
169 Warehouse Specialists - Enterprise Park 3.5, 4, 5 Fully Amortizing 5,467,635.82
170 Grand Central Station Shopping Center Balloon 5,394,496.51
171 Ramada Inn Newburgh Balloon 5,394,205.59
172 73 Spring Street Limited Partnership ARD 5,382,520.27
173 Beacon Mill Village Fully Amortizing 5,377,345.73
174 Club at Woodland Pond Balloon 5,355,892.91
175 La Maison Balloon 5,355,527.84
176 Connecticut Avenue Days Inn Balloon 5,350,000.00
177 Dill Creek Commons Shopping Center Fully Amortizing 5,349,731.63
178 Whole Foods Market Balloon 5,331,911.30
179 One Sentry Parkway ARD 5,292,378.31
180 Hampton Inn - Matthews Balloon 5,277,025.94
181 Cambridge House Fully Amortizing 5,271,218.92
182 Alta Vista Gardens Apartments Balloon 5,246,083.97
183 Kato Road Balloon 5,183,443.80
<CAPTION>
Balloon/ Original
Control Monthly ARD Gross Amortization Seasoning
No. P&I ($) Balance ARD Maturity Rate (%) Term (months) (months)
<S> <C> <C> <C> <C> <C> <C> <C>
122 $ 44,978.88 $ 6,228,358 2/1/03 2/1/28 7.2400% 360 3
123 45,247.68 5,798,365 2/1/08 7.3000 360 3
124 43,998.65 5,756,396 2/1/08 2/1/28 7.0200 360 3
125 45,922.40 3,877,239 12/1/17 12/1/27 7.4500 360 5
126 48,773.42 5,359,003 11/1/07 7.5000 300 6
127 45,320.04 655,651 4/1/28 7.3900 360 1
128 49,631.01 5,339,898 4/1/08 7.8750 300 1
129 46,231.31 347,013 2/1/23 7.0700 300 3
130 43,421.03 5,660,160 1/1/08 7.0710 360 4
131 43,986.27 5,649,365 2/1/08 2/1/28 7.3000 360 3
132 43,659.28 3,992,899 4/1/18 7.2500 360 1
133 45,298.80 5,669,732 1/1/08 7.6250 360 4
134 42,885.03 4,901,207 12/1/12 7.1100 360 5
135 42,773.51 5,463,740 3/1/08 7.1500 360 2
136 42,429.81 5,526,794 5/1/08 7.0900 360 0
137 43,019.85 5,533,122 4/1/08 7.2600 360 1
138 42,444.27 4,848,844 4/1/13 7.1250 360 1
139 43,105.37 596,147 12/1/27 7.2800 360 5
140 55,862.20 - 4/1/19 9.1200 252 1
141 40,578.93 4,562,683 4/1/14 6.7600 360 1
142 45,013.94 5,590,719 1/1/09 7.3000 300 4
143 41,082.33 5,403,353 3/1/08 3/1/28 6.9600 360 2
144 42,631.87 5,452,872 12/1/07 7.3300 360 5
145 45,600.94 - 10/1/22 7.4200 298 5
146 47,466.70 5,067,055 1/1/08 8.0000 300 4
147 41,612.75 5,353,916 12/1/07 7.2500 360 5
148 46,677.41 5,433,709 1/1/05 7.9000 300 4
149 43,872.20 4,857,155 4/1/08 7.3800 300 1
150 48,795.22 4,177,874 4/1/08 7.6250 240 1
151 40,605.51 4,622,411 2/1/13 2/1/28 7.1700 360 3
152 39,918.15 5,230,328 2/1/08 7.0000 360 3
153 42,467.63 5,315,373 1/1/08 7.6250 360 4
154 42,170.84 5,305,881 1/1/08 7.5530 360 4
155 39,408.99 5,087,393 4/1/08 7.2100 360 1
156 40,158.03 5,113,120 3/1/08 7.4000 360 2
157 39,526.89 4,482,308 2/1/13 2/1/28 7.2400 360 3
158 38,431.86 475,415 2/1/28 6.9600 360 3
159 42,557.86 2,041,228 1/1/18 7.3750 296 3
160 38,354.74 5,010,596 3/1/08 7.0510 360 2
161 38,831.45 5,013,593 3/1/08 7.2100 360 2
162 39,193.83 5,011,513 2/1/08 2/1/28 7.3300 360 3
163 41,531.07 3,666,819 2/1/13 7.3400 300 3
164 37,520.58 4,890,632 2/1/08 2/1/28 7.0700 360 3
165 39,133.01 4,945,057 11/1/07 7.4940 360 6
166 37,003.16 4,745,168 1/1/08 7.0750 360 4
167 41,092.76 3,596,484 4/1/13 7.6250 300 1
168 40,791.02 5,069,507 7/1/07 7/1/27 8.1400 360 10
169 50,790.54 116,221 3/1/13 7.4375 180 2
170 38,358.39 4,596,799 1/1/08 7.3750 330 4
171 41,231.91 4,436,224 4/1/08 7.8750 300 1
172 36,326.14 4,721,619 1/1/08 1/1/28 7.1100 360 4
173 38,220.86 576,573 11/1/27 7.6250 360 6
174 36,892.42 4,717,243 4/1/08 7.3400 360 1
175 35,336.83 4,664,385 4/1/08 6.9100 360 1
176 39,536.03 4,347,319 5/1/08 7.5000 300 0
177 42,764.71 187,047 1/1/18 7.3000 240 4
178 36,727.23 4,696,121 4/1/08 7.3400 360 1
179 35,367.88 4,627,605 3/1/08 3/1/28 7.0300 360 2
180 40,468.36 4,351,009 1/1/08 7.8750 300 4
181 43,919.90 214,352 2/1/18 7.8750 240 3
182 35,532.44 4,606,149 1/1/08 7.1460 360 4
183 35,275.87 4,556,686 1/1/08 7.1940 360 4
<CAPTION>
Remaining Term Remaining LTV at
Control to ARD or Maturity Lockout Cut-off Date ARD or
No. (months) Months DSCR (x) LTV (%) Maturity (%)
<S> <C> <C> <C> <C> <C>
122 57 0 1.21x 74.8% 70.8%
123 117 45 1.37 79.3 69.9
124 117 21 1.32 79.1 69.2
125 235 43 1.30 78.5 46.3
126 114 42 1.25 76.5 62.5
127 359 47 1.26 77.9 7.8
128 119 47 1.50 58.5 48.1
129 297 81 1.39 71.9 3.9
130 116 44 1.57 79.7 69.9
131 117 45 1.28 74.0 65.3
132 239 47 1.25 79.9 49.9
133 116 44 1.30 70.9 63.0
134 175 79 1.41 74.7 57.7
135 118 24 1.26 74.4 64.3
136 120 48 1.34 79.0 69.1
137 119 47 1.32 74.9 65.9
138 179 11 1.22 79.7 61.4
139 355 43 1.68 67.9 6.4
140 251 95 NAP NAP 0.0
141 191 59 1.45 68.6 50.1
142 128 44 1.54 50.0 45.1
143 118 46 1.41 79.9 69.7
144 115 43 1.23 76.6 67.6
145 293 91 NAP NAP 0.0
146 116 44 1.42 69.0 57.1
147 115 43 1.30 76.0 66.9
148 80 25 1.64 47.1 42.1
149 119 47 1.38 74.9 60.7
150 119 47 1.45 69.4 48.4
151 177 33 1.45 79.8 61.6
152 117 45 1.38 78.0 68.2
153 116 44 1.52 63.0 56.0
154 116 44 1.31 73.9 65.5
155 119 47 1.31 72.4 63.6
156 118 46 1.40 72.4 63.9
157 177 81 1.58 60.3 46.7
158 357 45 1.27 79.8 6.6
159 236 93 NAP NAP 33.7
160 118 46 1.34 74.3 65.0
161 118 46 1.52 73.6 64.7
162 117 45 1.36 77.9 68.7
163 177 45 1.44 64.5 41.7
164 117 45 1.54 60.7 53.2
165 114 42 1.56 78.5 69.7
166 116 44 1.36 79.7 68.8
167 179 83 1.54 74.2 48.6
168 110 14 1.25 78.4 72.4
169 178 70 1.27 63.6 1.4
170 116 32 1.26 74.4 63.4
171 119 47 1.40 69.6 57.2
172 116 44 1.39 74.8 65.6
173 354 114 1.50 71.7 7.7
174 119 47 1.30 79.9 70.4
175 119 23 1.49 79.9 69.6
176 120 48 1.51 70.9 57.6
177 236 116 1.29 74.4 2.6
178 119 47 1.25 79.9 70.4
179 118 46 1.36 57.7 50.4
180 116 44 1.52 74.6 61.5
181 237 81 1.37 78.7 3.2
182 116 44 1.31 74.9 65.8
183 116 44 1.62 64.8 57.0
</TABLE>
* Refer to the sheet "step" in the file named "FULBBA.XLS" contained in the
back cover of the Preliminary Prospectus Supplement for detailed
information on Monthly Payments for the Mortgage Loan.
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Control Interest-Only Interest-Only Amortization Cut-off Date
No. Property Name Period (months) Period (months) Type Balance ($)
<S> <C> <C> <C> <C> <C>
184 Hearthside Balloon $ 5,120,000.00
185 Hampton Inn - Concord Balloon 5,077,892.90
186 Reddmans Pier Apartments Balloon 5,019,965.16
187 Budgetel Inn Balloon 4,994,436.22
188 Hillside Village Center Balloon 4,993,729.36
189 Kroger Huntsville Balloon 4,987,105.52
190 Q Club Las Vegas Fully Amortizing 4,973,783.03
191 Thrifty's (Roll-Up) Balloon 4,936,933.47
192 Kelly House Balloon 4,907,580.45
193 Tiffany Corner Shopping Center Balloon 4,904,313.30
194 Timbers of Pine Hollow Apartments Balloon 4,896,093.16
195 Hampton Inn - Gatlinburg, TN Balloon 4,865,111.39
196 Q Club Tempe Fully Amortizing 4,851,870.64
197 Agoura Hills Town Center Balloon 4,850,614.46
198 Foxhill Apartments Balloon 4,787,972.59
199 Q Club Jacksonville Fully Amortizing 4,781,364.13
200 Southpoint Shopping Center ARD 4,735,219.11
201 Provincial Towers Apartments ARD 4,662,868.47
202 Royal Palms Mobile Home/RV Park Balloon 4,600,000.00
203 K&K Warehousing - 3100 Woleske Rd Balloon 4,591,819.50
204 Park Plaza - Salem Balloon 4,588,483.58
205 Fairesta Apartments Balloon 4,587,970.90
206 Villa Park I Balloon 4,574,973.46
207 Cody's Books Balloon 4,493,754.73
208 Village Faire Shoppes ARD 4,489,166.80
209 South Trust Building Balloon 4,488,810.52
210 South Ridge Apartments ARD 4,485,830.01
211 Fairfield Inn Shreveport Balloon 4,483,464.26
212 Santa Ana Plaza Balloon 4,482,358.10
213 Oxford Point Balloon 4,472,359.24
214 Minges Creek Plaza Balloon 4,445,732.34
215 TransFlorida Bank Plaza Balloon 4,393,961.09
216 Chesapeake Square ARD 4,393,749.31
217 Orchard Plaza Fully Amortizing 4,389,461.37
218 Sunnyview Balloon 4,356,682.39
219 Plaza Codorniz Balloon 4,246,854.08
220 J.P. Morgan Building Balloon 4,196,597.85
221 Villa Creek Apartments Balloon 4,196,581.00
222 Seminary Place Shopping Center Fully Amortizing 4,191,649.51
223 Vernon Gardens Balloon 4,188,585.76
224 Kingston Apartments ARD 4,180,514.34
225 Glengary Shopping Center ARD 4,174,404.10
226 1696 and 1700 to 1712 Newport Boulevard Balloon 4,164,473.16
227 Tarzana Tennis Club Apts. Balloon 4,150,453.39
228 Ramada Inn & Suites Balloon 4,145,337.26
229 L.A. Community College Fully Amortizing 4,121,706.60
230 Walgreens Pharmacy (Chicago) Balloon 4,119,422.58
231 Karl Plaza Shopping Center ARD 4,114,484.43
232 Villa Serrano ARD 4,111,868.60
233 Kendale Plaza Shopping Center Balloon 4,094,344.90
234 Sunrise Vista Balloon 4,093,770.79
235 Best Buy (Little Rock) Fully Amortizing 4,092,586.34
236 Alice Nettell Tower Fully Amortizing 4,085,108.18
237 Seagate Facility Balloon 4,082,680.29
238 Hunters Crossing Balloon 4,076,595.82
239 54-57 South Street Balloon 4,000,000.00
240 Hansen Village Apartments Balloon 3,996,904.34
241 Oakwood Apartments ARD 3,990,036.80
242 Lake Loft Center Balloon 3,987,665.78
243 5210 Maryland Way Office Building ARD 3,987,379.97
244 Milestone Fully Amortizing 3,956,704.30
245 Fashion Village and East Colonial Shopping Centers Balloon 3,932,520.25
<CAPTION>
Balloon/ Original
Control Monthly ARD Gross Amortization Seasoning
No. P&I ($) Balance ARD Maturity Rate (%) Term (months) (months)
<S> <C> <C> <C> <C> <C> <C> <C>
184 $ 33,634.76 $ 4,451,838 5/1/08 6.8750% 360 0
185 38,941.25 4,186,820 1/1/08 7.8750 300 4
186 34,262.12 4,346,569 12/1/07 7.2150 360 5
187 37,438.78 4,080,529 4/1/08 7.6500 300 1
188 35,020.64 3,988,066 4/1/08 6.9000 300 1
189 36,799.57 1,739,088 1/1/18 7.3750 295 3
190 44,706.33 - 4/1/19 9.2000 252 1
191 33,165.45 4,322,981 2/1/08 7.0700 360 3
192 32,343.91 4,276,090 2/1/08 6.8800 360 3
193 33,091.81 4,534,475 2/1/05 7.1161 357 0
194 33,061.84 4,290,134 4/1/08 7.1400 360 1
195 36,423.12 3,976,334 3/1/08 7.6250 300 2
196 43,356.47 - 4/1/19 9.1200 252 1
197 36,169.49 4,194,994 11/1/07 7.8750 330 6
198 33,152.41 4,225,050 2/1/08 7.3750 360 3
199 42,726.43 - 4/1/19 9.1200 252 1
200 32,596.91 4,394,255 1/1/05 1/1/28 7.3100 360 4
201 31,638.46 3,601,628 2/1/13 2/1/28 7.1700 360 3
202 31,598.81 4,046,809 5/1/08 7.3200 360 0
203 37,409.67 3,203,036 4/1/08 7.6250 240 1
204 31,786.73 4,049,521 2/1/08 7.3800 360 3
205 30,991.05 4,023,081 2/1/08 7.1250 360 3
206 34,368.49 3,006,138 12/1/12 7.6250 300 5
207 30,469.35 3,944,114 3/1/08 7.1750 360 2
208 31,804.30 3,534,566 2/1/13 2/1/28 7.6100 360 3
209 31,218.51 3,965,496 2/1/08 7.4200 360 3
210 30,697.93 3,948,991 1/1/08 1/1/28 7.2500 360 4
211 33,137.61 3,648,624 2/1/08 7.4600 300 3
212 30,965.66 3,955,412 1/1/08 7.3460 360 4
213 34,209.10 3,877,566 11/1/07 8.1300 327 6
214 32,043.08 3,759,839 4/1/08 7.4900 324 1
215 29,926.28 3,860,988 3/1/08 7.2200 360 2
216 29,510.09 3,846,867 3/1/08 3/1/28 7.0800 360 2
217 31,690.20 - 3/1/23 7.2100 300 2
218 30,113.44 3,840,596 4/1/08 7.3750 360 1
219 29,754.46 3,756,814 4/1/08 7.5130 360 1
220 28,112.15 3,669,538 4/1/08 7.0600 360 1
221 28,041.50 3,868,291 4/1/05 7.0350 360 1
222 31,835.49 125,804 4/1/18 6.7100 240 1
223 27,661.21 3,196,427 2/1/13 6.9000 360 3
224 30,901.16 3,876,461 1/1/03 1/1/23 7.4500 300 4
225 28,713.70 3,677,433 3/1/08 3/1/28 7.3200 360 2
226 28,758.54 3,672,401 3/1/08 7.3600 360 2
227 27,795.14 3,631,108 3/1/08 7.0510 360 2
228 30,911.49 1,722,472 4/1/18 7.5900 300 1
229 44,695.39 - 8/1/09 7.2280 139 4
230 30,785.00 1,209,626 1/1/18 7.3600 286 4
231 28,301.54 3,624,647 3/1/08 3/1/28 7.3200 360 2
232 29,639.51 3,668,040 12/1/07 12/1/27 7.7768 355 0
233 27,830.32 3,595,868 3/1/08 7.2000 360 2
234 26,734.40 3,558,015 3/1/08 6.8020 360 2
235 33,004.26 155,523 4/1/18 7.4900 240 1
236 29,397.77 - 2/1/23 7.1600 300 3
237 28,929.34 3,629,445 11/1/07 7.5930 360 6
238 26,898.18 3,550,503 4/1/08 6.9100 360 1
239 29,235.19 3,238,084 5/1/08 7.3750 300 0
240 27,395.66 3,515,813 4/1/08 7.2900 360 1
241 27,722.49 3,114,564 2/1/13 2/1/28 7.4100 360 3
242 27,575.23 3,519,749 1/1/08 7.3560 360 4
243 27,259.93 3,451,628 1/1/08 1/1/28 7.2400 360 4
244 29,374.90 248,378 1/1/23 7.5000 300 4
245 28,736.26 3,524,478 10/1/07 7.9100 360 7
<CAPTION>
Remaining Term Remaining LTV at
Control to ARD or Maturity Lockout Cut-off Date ARD or
No. (months) Months DSCR (x) LTV (%) Maturity (%)
<S> <C> <C> <C> <C> <C>
184 120 60 1.31x 80.0% 69.6%
185 116 44 1.40 73.6 60.7
186 115 43 1.26 79.7 69.0
187 119 25 1.49 74.5 60.9
188 119 47 1.72 60.2 48.1
189 236 93 NAP NAP 32.8
190 251 95 NAP NAP 0.0
191 117 0 1.35 73.1 64.0
192 117 45 1.32 77.3 67.3
193 81 45 1.31 74.7 69.1
194 119 35 1.28 75.3 66.0
195 118 46 1.44 74.9 61.2
196 251 95 NAP NAP 0.0
197 114 18 1.39 74.6 64.5
198 117 45 1.29 73.7 65.0
199 251 95 NAP NAP 0.0
200 80 44 1.30 75.2 69.8
201 177 25 1.23 77.7 60.0
202 120 48 1.37 78.6 69.2
203 119 47 1.44 76.4 53.3
204 117 45 1.26 78.4 69.2
205 117 45 1.28 79.8 70.0
206 175 55 1.32 65.8 43.3
207 118 46 1.48 62.9 55.2
208 177 81 1.26 56.1 44.2
209 117 45 1.26 70.7 62.5
210 116 44 1.25 73.5 64.7
211 117 45 1.41 69.0 56.1
212 116 44 1.36 74.7 65.9
213 114 42 1.36 72.7 63.1
214 119 47 1.40 74.0 62.6
215 118 46 1.49 72.0 63.3
216 118 46 1.28 75.1 65.8
217 298 118 1.31 74.4 0.0
218 119 47 1.34 79.9 70.5
219 119 59 1.26 72.0 63.7
220 119 47 1.28 71.1 62.2
221 83 35 1.39 73.6 67.9
222 239 59 1.55 55.9 1.7
223 177 33 1.25 76.2 58.1
224 56 32 1.27 78.4 72.7
225 118 46 1.32 74.5 65.7
226 118 46 1.53 74.6 65.8
227 118 46 1.42 74.8 65.4
228 239 47 1.40 75.9 31.5
229 135 44 1.24 73.6 0.0
230 236 92 NAP NAP 27.8
231 118 46 1.30 73.5 64.7
232 115 43 1.20 76.6 68.3
233 118 46 1.38 73.4 64.5
234 118 58 2.06 46.8 40.7
235 239 119 1.26 74.4 2.8
236 297 117 1.31 69.2 0.0
237 114 30 1.31 70.8 62.9
238 119 23 1.26 79.9 69.6
239 120 48 1.57 63.5 51.4
240 119 35 1.26 66.6 58.6
241 177 45 1.31 79.8 62.3
242 116 44 1.54 70.9 62.6
243 116 44 1.36 79.0 68.4
244 296 56 1.32 74.7 4.7
245 113 29 1.33 76.4 68.4
</TABLE>
* Refer to the sheet "step" in the file named "FULBBA.XLS" contained in the
back cover of the Preliminary Prospectus Supplement for detailed
information on Monthly Payments for the Mortgage Loan.
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Control Interest-Only Interest-Only Amortization Cut-off Date
No. Property Name Period (months) Period (months) Type Balance ($)
<S> <C> <C> <C> <C> <C>
246 Arnold Industrial Park Balloon $ 3,925,345.74
247 Derby Ridge Balloon 3,888,336.27
248 Ventana Row Balloon 3,881,505.61
249 New Hampshire Apartments Balloon 3,836,194.01
250 Superstition Marketplace 24 20 Balloon 3,800,000.00
251 Blue Grass Plaza Balloon 3,793,244.60
252 Merrill Crossing Shopping Ctr. Balloon 3,790,289.55
253 River Creek Apartments Balloon 3,788,034.64
254 Village Green Balloon 3,787,735.69
255 Spartan Square Shopping Center Fully Amortizing 3,785,732.36
256 Winn Dixie Eustis Fully Amortizing 3,781,369.71
257 Versailles of Rockford ARD 3,750,108.50
258 Lynnwood Manor Health Care Center Balloon 3,746,037.63
259 Tri-County Square ARD 3,688,584.07
260 Bethesda Court Hotel Balloon 3,636,395.34
261 Winn Dixie Orangeburg Balloon 3,614,562.16
262 Roswell Mill Office Buildings ARD 3,614,244.75
263 Highland Tech Center ARD 3,597,169.25
264 Stor-All Properties ARD 3,594,923.24
265 Parole Office Park ARD 3,594,810.39
266 McEvers Corners Fully Amortizing 3,591,540.48
267 Windscape II Apartments Balloon 3,591,189.64
268 Courtyards Apartments Balloon 3,591,078.89
269 Miami Gardens Plaza Balloon 3,591,048.41
270 Village South Balloon 3,577,012.99
271 Webtron Building Balloon 3,547,375.75
272 Fairway Center Balloon 3,547,372.24
273 Santa Fe Square Balloon 3,496,073.89
274 Gomes Plaza Balloon 3,492,968.16
275 Covington Square Balloon 3,477,096.43
276 Best Buy (Sioux Falls) Balloon 3,475,000.00
277 Parkway Nursing Home Balloon 3,446,354.62
278 Grand Manor Nursing and Rehab Center Balloon 3,435,045.19
279 Terrace View Apartments ARD 3,431,073.27
280 Hillsdale Manor Balloon 3,426,847.77
281 Amerihost Inn- Players Fully Amortizing 3,419,679.83
282 Walgreens (Las Vegas) Fully Amortizing 3,396,544.93
283 Metro Plaza Balloon 3,394,966.40
284 Fidelity Federal Bank Building Balloon 3,392,923.73
285 White Mountain Village ARD 3,390,568.02
286 Forestwood On the Creek Apts. Balloon 3,389,912.30
287 Shepherdsville Square ARD 3,389,509.68
288 Westbrook Balloon 3,385,039.59
289 100 Broadway Balloon 3,380,435.75
290 Staples Hazelton Fully Amortizing 3,361,990.84
291 Treetops Terace Condominiums Balloon 3,350,000.00
292 Estero Woods Village Balloon 3,349,272.58
293 Green Center (MCG) Balloon 3,343,708.47
294 Warehouse Specialists - Fond Du Lac II Fully Amortizing 3,330,287.28
295 Walgreens Pharmacy (Chicago Heights) Balloon 3,297,412.39
296 Everett I-5 Mini-Storage Balloon 3,295,515.58
297 Buck Run/Timberline Condominiums Balloon 3,295,363.42
298 Marketplace Shopping Center (Williamsburg-Loan Level) ARD 3,291,905.50
299 Mooresmill Village Fully Amortizing 3,291,194.91
300 The Pontiac Building Balloon 3,289,824.29
301 Best Buy Retail Bldg. Balloon 3,287,692.89
302 Sussex Downs Apartments Balloon 3,266,130.06
303 Foothills Villas Apartments Fully Amortizing 3,264,848.02
304 Lincoln Arms Apartments Balloon 3,252,040.67
305 2-32 Brighton & 1101-1113 Commonwealth Balloon 3,246,220.37
306 Manchester Square ARD 3,239,972.50
307 Northgate Villas Apartments Balloon 3,231,170.58
<CAPTION>
Balloon/ Original
Control Monthly ARD Gross Amortization Seasoning
No. P&I ($) Balance ARD Maturity Rate (%) Term (months) (months)
<S> <C> <C> <C> <C> <C> <C> <C>
246 $ 28,796.66 $ 3,186,429 2/1/08 7.3750% 300 3
247 27,296.08 3,445,120 1/1/08 7.5100 360 4
248 28,345.44 3,435,073 1/1/05 7.3120 300 4
249 26,777.54 3,396,051 12/1/07 7.4460 360 5
250 26,453.96 2,977,919 2/1/13 7.2500 336 4
251 26,226.90 3,203,336 3/1/08 7.1000 330 2
252 25,948.48 3,335,034 2/1/08 7.2600 360 3
253 25,922.70 3,279,793 1/1/08 7.2500 360 4
254 25,601.30 3,323,922 1/1/08 7.1250 360 4
255 29,006.90 118,616 3/1/18 6.8000 240 2
256 29,851.29 - 9/1/17 7.0300 236 4
257 25,243.05 3,285,430 2/1/08 2/1/28 7.0900 360 3
258 28,868.62 3,089,220 4/1/08 7.9700 300 1
259 25,499.53 3,255,519 1/1/08 1/1/28 7.3530 360 4
260 26,641.67 2,950,561 2/1/08 7.3600 300 3
261 26,554.05 1,324,996 5/1/17 7.2600 294 6
262 25,470.75 3,205,398 1/1/08 1/1/28 7.5500 360 4
263 24,460.75 2,239,627 4/1/18 4/1/28 7.2100 360 1
264 24,217.43 3,149,923 3/1/08 3/1/28 7.1100 360 2
265 23,999.26 3,142,446 3/1/08 3/1/28 7.0200 360 2
266 26,206.88 - 3/1/23 7.3300 300 2
267 24,081.59 3,093,159 2/1/08 7.0540 360 3
268 25,023.98 3,173,997 2/1/08 7.4400 360 3
269 24,974.81 3,172,397 2/1/08 7.4200 360 3
270 23,601.84 3,115,391 4/1/08 6.9100 360 1
271 24,870.75 3,138,597 4/1/08 7.5200 360 1
272 24,853.72 3,138,046 4/1/08 7.5130 360 1
273 26,092.78 3,100,869 4/1/05 7.6000 300 1
274 26,264.41 2,859,047 3/1/08 7.6750 300 2
275 22,942.57 3,028,369 4/1/08 6.9100 360 1
276 24,131.36 3,065,706 5/1/08 7.4300 360 0
277 26,559.13 2,842,082 4/1/08 7.9700 300 1
278 26,342.61 2,282,705 1/1/13 7.8750 300 4
279 23,280.49 2,650,183 2/1/13 2/1/28 7.1700 360 3
280 23,339.63 2,962,054 2/1/08 7.2100 360 3
281 28,057.25 133,657 12/1/17 7.6250 240 5
282 27,051.35 - 11/1/17 7.2000 240 6
283 22,415.15 2,592,085 3/1/13 6.9100 360 2
284 25,103.59 2,762,055 3/1/08 7.4900 300 2
285 22,120.18 2,946,491 2/1/08 2/1/28 6.7800 360 3
286 23,889.81 3,006,441 1/1/08 7.5500 360 4
287 23,432.00 2,991,558 1/1/08 1/1/28 7.3530 360 4
288 22,879.48 2,970,536 1/1/08 7.1250 360 4
289 27,099.85 2,342,918 2/1/08 7.3600 240 3
290 27,437.69 - 2/1/18 7.6000 240 3
291 22,852.91 2,593,554 5/1/13 7.2500 360 0
292 22,761.81 3,101,626 1/1/05 7.1800 360 4
293 26,335.70 2,295,825 4/1/08 7.1800 240 1
294 30,936.05 70,791 3/1/13 7.4375 180 2
295 24,512.00 1,119,966 1/1/18 7.4300 294 4
296 22,534.20 2,898,748 3/1/08 7.2600 360 2
297 22,232.71 2,888,567 3/1/08 7.1250 360 2
298 23,074.08 2,913,881 2/1/08 2/1/28 7.5000 360 3
299 27,834.85 - 2/1/23 9.0625 300 3
300 22,749.56 2,903,794 1/1/08 7.3560 360 4
301 24,078.45 2,667,308 2/1/08 7.3560 300 3
302 21,612.98 2,848,841 2/1/08 6.9200 360 3
303 27,132.04 - 11/1/17 7.7700 240 6
304 22,054.99 2,856,288 1/1/08 7.1590 360 4
305 23,753.59 2,630,560 4/1/08 7.3750 300 1
306 22,398.23 2,859,579 1/1/08 1/1/28 7.3530 360 4
307 21,303.98 2,815,691 2/1/08 6.8840 360 3
<CAPTION>
Remaining Term Remaining LTV at
Control to ARD or Maturity Lockout Cut-off Date ARD or
No. (months) Months DSCR (x) LTV (%) Maturity (%)
<S> <C> <C> <C> <C> <C>
246 117 45 1.35x 56.1% 45.5%
247 116 56 1.32 69.2 61.3
248 80 32 1.60 58.5 51.8
249 115 43 1.26 79.9 70.8
250 177 56 1.46 58.0 45.5
251 118 58 1.28 71.6 60.4
252 117 45 1.40 73.6 64.8
253 116 44 1.41 74.3 64.3
254 116 44 1.57 80.6 70.7
255 238 58 1.65 64.6 2.0
256 232 92 NAP NAP 0.0
257 117 45 1.23 79.8 69.9
258 119 59 2.29 47.4 39.1
259 116 44 1.46 75.3 66.4
260 117 61 1.58 66.1 53.7
261 228 90 NAP NAP 34.9
262 116 44 1.31 65.9 58.4
263 239 119 1.26 74.9 46.7
264 118 46 1.31 74.1 65.0
265 118 46 1.34 78.2 68.3
266 298 142 1.25 74.8 0.0
267 117 45 1.53 75.8 65.3
268 117 33 1.26 79.8 70.5
269 117 45 1.66 71.8 63.5
270 119 23 1.35 79.9 69.6
271 119 47 1.35 74.7 66.1
272 119 59 1.29 71.0 62.8
273 83 23 2.00 30.9 27.4
274 118 46 1.60 53.7 44.0
275 119 23 1.35 79.9 69.6
276 120 48 1.25 77.2 68.1
277 119 59 2.23 51.6 42.6
278 176 32 1.98 74.7 49.6
279 177 33 1.24 79.8 61.6
280 117 45 1.25 74.8 64.7
281 235 55 1.40 68.4 2.7
282 234 54 NAP NAP 0.0
283 178 82 1.50 73.6 56.2
284 118 46 1.31 72.2 58.8
285 117 45 1.39 73.7 64.1
286 116 44 1.27 70.6 62.6
287 116 44 1.56 73.3 64.7
288 116 44 1.47 80.6 70.7
289 117 45 1.36 67.6 46.9
290 237 93 NAP NAP 0.0
291 180 24 1.29 79.8 61.8
292 80 44 1.40 79.7 73.9
293 119 47 1.28 69.7 47.8
294 178 70 1.35 62.8 1.3
295 236 92 NAP NAP 32.0
296 118 46 1.53 64.6 56.8
297 118 46 1.30 76.6 67.2
298 117 45 1.32 74.1 65.6
299 297 117 1.20 75.3 0.0
300 116 44 1.69 70.0 61.8
301 117 45 1.36 73.1 59.3
302 117 45 1.27 79.7 69.5
303 234 42 1.29 65.3 0.0
304 116 44 1.56 74.8 65.7
305 119 35 1.30 61.3 49.6
306 116 44 1.81 66.8 59.0
307 117 45 1.39 74.8 65.2
</TABLE>
* Refer to the sheet "step" in the file named "FULBBA.XLS" contained in the
back cover of the Preliminary Prospectus Supplement for detailed
information on Monthly Payments for the Mortgage Loan.
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Control Interest-Only Interest-Only Amortization Cut-off Date
No. Property Name Period (months) Period (months) Type Balance ($)
<S> <C> <C> <C> <C> <C>
308 South Brook Balloon $ 3,213,139.91
309 The Promenade Apartments Balloon 3,208,099.19
310 Swall Towers East Balloon 3,197,448.60
311 Pinnacle Balloon 3,191,724.41
312 Hillside Village Plaza Balloon 3,191,710.26
313 Access Self Storage of Wayne Balloon 3,188,308.05
314 Kaiser Permanente Health Center Balloon 3,184,959.64
315 Winn Dixie Morganton Fully Amortizing 3,154,360.17
316 Swall Towers West Balloon 3,147,488.47
317 Wind & Sea Shopping Center Balloon 3,146,055.81
318 Grandview Balloon 3,143,820.62
319 Salt Lake Medical Plaza Office Building Balloon 3,134,338.76
320 Pep Boys Union Fully Amortizing 3,124,248.80
321 9031 Snowden Square Drive Fully Amortizing 3,117,577.56
322 Carriage Hills Apartments Balloon 3,113,343.36
323 Village on the Pike Shopping Center Balloon 3,097,528.33
324 101 Park Avenue Balloon 3,093,350.46
325 San Leandro Furniture Center Balloon 3,093,291.66
326 General Cinema ARD 3,090,238.46
327 Westlake Commerce Center Balloon 3,086,819.64
328 Valencia Gardens Apartments ARD 3,071,470.37
329 Barnes & Noble Balloon 3,058,550.65
330 Mcghan Medical Buildings Balloon 3,033,799.44
331 Woodmere Apartments ARD 3,032,111.26
332 Safeway Milton Freewater Fully Amortizing 3,022,231.31
333 Rite Aid Portage Balloon 3,010,493.00
334 Rain Forest Apartments Balloon 2,997,655.06
335 Nexstar Pharmaceuticals Building Balloon 2,997,612.80
336 Meadowrock Apartments Balloon 2,997,495.94
337 544 Lawrence Expressway Balloon 2,996,584.65
338 Courtyard At Scottsdale North Balloon 2,989,267.88
339 Mountain Vista Apartments Balloon 2,988,062.61
340 Walgreen St John Fully Amortizing 2,960,504.00
341 Timberfalls Apartments ARD 2,955,617.80
342 Chancellor Care Center of Delmar Balloon 2,944,904.07
343 118 South Clinton Street Balloon 2,940,903.52
344 University Village Shopping Center Balloon 2,936,468.90
345 Walgreen Lafayette Fully Amortizing 2,922,389.00
346 Northfield Lodge Balloon 2,897,305.71
347 Greenbrier Valley Mall ARD 2,891,052.37
348 Somserset Chambers Fully Amortizing 2,876,550.45
349 Village Plaza of Margate Fully Amortizing 2,843,054.28
350 Bentley Avenue Apartments Balloon 2,836,527.64
351 Pheasant Glen Balloon 2,815,365.88
352 Maple Plaza Shopping Center ARD 2,792,929.95
353 11312 Westheimer Shopping Center Balloon 2,791,474.94
354 Old Country Plaza Fully Amortizing 2,778,954.47
355 West Court Office Building ARD 2,745,987.29
356 Walgreen Miami Fully Amortizing 2,718,069.24
357 Paradise Shopping Plaza Balloon 2,697,988.17
358 Century Analysis, Inc., Building ARD 2,696,563.47
359 Americana Apartments Balloon 2,688,048.26
360 Warehouse Specialists - Stevens Point I & II Fully Amortizing 2,684,112.12
361 Dolly Creek Shopping Center Balloon 2,672,871.41
362 Littleton Lyne Balloon 2,656,383.08
363 Raintree Apartments Balloon 2,652,844.86
364 Auburn Blvd Mini Storage Balloon 2,639,793.95
365 Springs Office Building Balloon 2,639,786.71
366 Covington Club Apartments Balloon 2,596,257.41
367 Park East Apartments ARD 2,596,160.04
368 Shadow Trail Apartments ARD 2,593,160.14
369 Inn at Saratoga ARD 2,588,127.92
<CAPTION>
Balloon/ Original
Control Monthly ARD Gross Amortization Seasoning
No. P&I ($) Balance ARD Maturity Rate (%) Term (months) (months)
<S> <C> <C> <C> <C> <C> <C> <C>
308 $ 22,175.45 $ 2,503,965 12/1/12 7.3300% 360 5
309 22,090.70 2,830,309 12/1/07 7.3070 360 5
310 21,591.40 2,801,721 4/1/08 7.1400 360 1
311 21,699.56 2,803,390 2/1/08 7.1900 360 3
312 21,677.91 2,802,665 2/1/08 7.1800 360 3
313 23,647.72 2,597,680 2/1/08 7.5000 300 3
314 22,704.46 2,837,229 10/1/07 7.6500 360 7
315 24,999.29 - 6/1/17 7.0000 232 3
316 21,254.03 2,757,945 4/1/08 7.1400 360 1
317 22,206.73 2,789,886 3/1/08 7.5840 360 2
318 21,249.08 2,758,855 1/1/08 7.1250 360 4
319 22,379.95 2,521,177 2/1/08 7.0700 300 3
320 Step* - 11/1/17 7.4100 238 4
321 26,103.34 129,747 11/1/17 7.8750 240 6
322 26,667.99 2,792,119 8/1/02 8.1200 240 9
323 20,916.67 2,714,167 4/1/08 7.1400 360 1
324 22,567.04 2,506,174 3/1/08 7.3300 300 2
325 22,472.96 2,502,582 3/1/08 7.2830 300 2
326 21,147.46 2,397,573 1/1/13 1/1/28 7.2500 360 4
327 21,809.54 2,742,168 11/1/07 7.5630 360 6
328 20,058.78 2,669,896 2/1/08 2/1/28 6.7900 360 3
329 22,400.26 2,481,404 2/1/08 7.3560 300 3
330 20,935.68 2,677,995 12/1/07 7.3290 360 5
331 20,573.46 2,342,021 2/1/13 2/1/28 7.1700 360 3
332 Step* - 8/1/17 7.2500 233 2
333 22,542.69 617,795 1/1/18 7.1250 266 0
334 20,444.95 2,633,457 4/1/08 7.2400 360 1
335 20,262.20 2,627,301 4/1/08 7.1500 360 1
336 19,774.06 2,610,524 4/1/08 6.9080 360 1
337 22,185.35 2,437,968 4/1/08 7.5080 300 1
338 20,888.17 2,647,008 12/1/07 7.4570 360 5
339 20,383.96 2,586,947 12/1/07 7.2100 360 5
340 23,177.84 - 12/1/17 7.0000 235 0
341 19,514.37 2,576,213 3/1/08 3/1/28 6.9100 360 2
342 22,845.76 2,439,308 12/1/07 8.0000 300 5
343 20,336.73 2,595,815 1/1/08 7.3560 360 4
344 23,757.60 2,458,852 7/1/12 9.0100 360 10
345 22,526.56 - 3/1/18 6.8750 238 0
346 19,995.72 2,257,840 12/1/12 7.3300 360 5
347 19,986.12 2,551,623 1/1/08 1/1/28 7.3530 360 4
348 20,705.64 - 4/1/23 7.1900 300 1
349 24,758.22 76,909 4/1/15 7.5000 204 1
350 20,172.12 2,525,345 10/1/07 7.6250 360 7
351 22,099.99 1,354,981 1/1/23 8.7000 360 4
352 19,253.10 2,461,797 2/1/08 2/1/18 7.3300 360 3
353 19,424.85 2,467,827 1/1/08 7.4200 360 4
354 22,130.53 95,731 1/1/18 7.2500 240 4
355 18,240.45 2,397,287 3/1/08 3/1/28 6.9700 360 2
356 22,627.10 - 12/1/16 7.5000 228 5
357 18,841.83 2,384,698 4/1/08 7.4800 360 1
358 18,915.78 2,387,494 3/1/08 3/1/28 7.5200 360 2
359 18,648.23 2,377,072 11/1/07 7.3750 360 6
360 24,933.54 57,053 3/1/13 7.4375 180 2
361 18,067.13 2,342,676 4/1/08 7.1500 360 1
362 20,607.49 2,200,322 12/1/07 8.0000 300 5
363 17,625.65 2,446,058 2/1/05 6.9600 360 3
364 18,949.99 2,127,237 2/1/08 7.1300 300 3
365 18,941.49 2,126,910 2/1/08 7.1250 300 3
366 17,343.29 2,269,905 3/1/08 7.0260 360 2
367 17,158.40 2,263,498 3/1/08 3/1/28 6.9200 360 2
368 17,455.30 2,271,840 2/1/08 2/1/28 7.0900 360 3
369 19,298.41 2,114,174 1/1/08 1/1/23 7.5500 300 4
<CAPTION>
Remaining Term Remaining LTV at
Control to ARD or Maturity Lockout Cut-off Date ARD or
No. (months) Months DSCR (x) LTV (%) Maturity (%)
<S> <C> <C> <C> <C> <C>
308 175 19 1.79x 49.4% 38.5%
309 115 43 1.44 79.7 70.3
310 119 47 1.29 79.9 70.0
311 117 45 1.40 79.1 69.5
312 117 45 1.30 72.5 63.7
313 117 45 1.82 65.1 53.0
314 113 41 1.28 75.8 67.6
315 229 93 NAP NAP 0.0
316 119 47 1.28 76.3 66.9
317 118 46 1.30 74.9 66.4
318 116 44 1.44 80.6 70.7
319 117 45 1.48 63.6 51.2
320 234 92 NAP NAP 0.0
321 234 42 1.28 69.3 2.9
322 51 27 1.56 77.8 69.8
323 119 47 1.39 73.8 64.6
324 118 46 1.33 71.9 58.3
325 118 46 1.42 60.0 48.5
326 176 80 1.29 79.2 61.5
327 114 42 1.49 70.2 62.3
328 117 45 1.29 79.8 69.4
329 117 45 1.29 74.6 60.5
330 115 43 1.64 74.0 65.3
331 177 25 1.30 79.8 61.6
332 231 70 NAP NAP 0.0
333 236 72 NAP NAP 19.9
334 119 35 1.31 76.5 67.2
335 119 59 1.32 71.4 62.6
336 119 47 1.41 68.1 59.3
337 119 47 1.50 66.6 54.2
338 115 43 1.79 59.8 52.9
339 115 43 1.30 74.7 64.7
340 235 72 NAP NAP 0.0
341 118 46 1.41 79.9 69.6
342 115 43 1.45 68.5 56.7
343 116 44 1.74 73.5 64.9
344 170 110 1.29 69.9 58.5
345 238 72 NAP NAP 0.0
346 175 19 1.30 66.6 51.9
347 116 44 1.30 70.5 62.2
348 299 0 1.26 79.9 0.0
349 203 107 1.26 71.1 1.9
350 113 41 1.21 70.9 63.1
351 296 24 1.18 84.8 40.8
352 117 45 1.38 57.0 50.2
353 116 44 1.29 75.2 66.5
354 236 44 1.36 70.4 2.4
355 118 46 1.29 78.5 68.5
356 223 91 NAP NAP 0.0
357 119 47 1.39 74.7 66.1
358 118 46 1.27 74.9 66.3
359 114 42 1.40 74.7 66.0
360 178 70 1.34 59.7 1.3
361 119 47 1.38 77.5 67.9
362 115 43 1.26 78.1 64.7
363 81 33 1.54 69.8 64.4
364 117 45 1.38 73.8 59.5
365 117 45 1.30 68.8 55.4
366 118 58 1.42 79.3 69.3
367 118 46 1.30 79.6 69.4
368 117 57 1.32 78.6 68.8
369 116 44 3.53 39.8 32.5
</TABLE>
* Refer to the sheet "step" in the file named "FULBBA.XLS" contained in the
back cover of the Preliminary Prospectus Supplement for detailed
information on Monthly Payments for the Mortgage Loan.
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Control Interest-Only Interest-Only Amortization Cut-off Date
No. Property Name Period (months) Period (months) Type Balance ($)
<S> <C> <C> <C> <C> <C>
370 Regency Park Apartments Balloon $ 2,587,545.22
371 Marketplace at Ken Caryl Balloon 2,547,125.71
372 Three West Carillo Building Balloon 2,546,696.96
373 Linda Granada Balloon 2,542,686.75
374 633 Building Balloon 2,540,682.96
375 Shoreline View Alzheimer Care Center Balloon 2,538,946.43
376 Tudor Gardens Apartments Balloon 2,538,067.74
377 Cobblestone Village Balloon 2,500,000.00
378 K-Mart Plaza Shopping Center (Galveston) ARD 2,494,392.42
379 303 Winding Road ARD 2,491,811.51
380 West Sahara Mini Storage Balloon 2,489,026.58
381 Amerihost Inn - Hammond Fully Amortizing 2,481,770.36
382 Holiday Inn Express - Albany, GA Fully Amortizing 2,479,063.65
383 Hillside Apartments Balloon 2,472,995.16
384 Walgreen Store (Wolfcreek) Fully Amortizing 2,467,814.73
385 Southgate Village Life Care Center Balloon 2,464,054.16
386 Walgreen Houston Fully Amortizing 2,459,764.86
387 Kushner Seiden Madison 64th LP Fully Amortizing 2,453,681.46
388 Miramar/Chapparone Auto Center Balloon 2,448,027.16
389 Stor-It Rental Storage Balloon 2,447,179.29
390 Jefferson Centre Balloon 2,446,687.19
391 Best Western - Dunn Fully Amortizing 2,416,635.89
392 Ocean Villa Townhomes #2 Balloon 2,396,690.52
393 Central Park Professional Center Balloon 2,396,615.50
394 Safeguard Self Storage Balloon 2,394,644.70
395 Tuscany Village Phase I Balloon 2,392,627.30
396 Concord Village West Balloon 2,391,173.89
397 Peoria Town Center Balloon 2,388,976.76
398 Days Inn - Forest Park Balloon 2,382,514.19
399 Tech Center Balloon 2,382,499.53
400 Amerihost Inn - Parkersburg Fully Amortizing 2,378,907.69
401 Comfort Inn - Gaffney, SC Fully Amortizing 2,360,068.62
402 Food Pavilion Balloon 2,343,111.70
403 Eckerd Drug Store (Lexington) Balloon 2,340,959.27
404 Keep It Self Storage - Santa Clarita Balloon 2,339,388.61
405 Country Creek Balloon 2,326,171.64
406 1803 Park Center Drive Balloon 2,322,167.35
407 Willow Trace Apartments 23 13 ARD 2,322,000.00
408 Walgreen Coral Springs Fully Amortizing 2,320,085.38
409 Fox Crossing Balloon 2,319,272.57
410 Emmorton Village Shopping Center Balloon 2,291,829.34
411 Slauson Plaza Balloon 2,280,921.21
412 Walgreen Chicago Fully Amortizing 2,261,719.41
413 Warehouse Specialists - Specialists Ave # 1-4 Fully Amortizing 2,261,613.00
414 Wanamassa Gardens Apartments ARD 2,254,135.36
415 Inn of Payson Balloon 2,247,472.01
416 River Oaks Apartments Balloon 2,246,834.81
417 Val Halla Balloon 2,222,177.00
418 Timm Office Building Balloon 2,222,028.77
419 Twin Fountains Apartments Balloon 2,216,216.51
420 Hillcroft Plaza Shopping Center ARD 2,205,232.78
421 Plantation House 23 13 ARD 2,200,000.00
422 Olde Towne Shopping Center ARD 2,197,192.71
423 5 Walk-Up Residential Buildings (Formerly 70 East) ARD 2,197,106.08
424 Comfort Inn - Franklin Balloon 2,196,876.93
425 Days Inn (Winter Park) Balloon 2,195,718.51
426 Office Depot Aurora Fully Amortizing 2,194,462.46
427 Tara Woods Apartments Balloon 2,194,360.59
428 Sneaker Stadium ARD 2,193,031.27
429 Andora Apartments Fully Amortizing 2,192,153.17
430 1212-1216 Broadway Balloon 2,189,021.81
431 3610 Birch Street (Apollo Office Building) Balloon 2,183,388.13
<CAPTION>
Balloon/ Original
Control Monthly ARD Gross Amortization Seasoning
No. P&I ($) Balance ARD Maturity Rate (%) Term (months) (months)
<S> <C> <C> <C> <C> <C> <C> <C>
370 $ 18,299.01 $ 2,300,503 10/1/07 7.5670% 360 7
371 18,960.54 2,076,121 4/1/08 7.5700 300 1
372 17,744.49 2,250,927 3/1/08 7.4510 360 2
373 18,215.68 2,264,320 1/1/08 7.7200 360 4
374 18,844.28 2,070,026 2/1/08 7.5000 300 3
375 19,470.63 2,093,409 1/1/08 7.8750 300 4
376 17,159.17 2,229,909 11/1/07 7.1130 360 6
377 17,054.41 2,195,384 5/1/08 7.2500 360 0
378 17,813.27 2,006,244 3/1/08 3/1/23 7.0900 300 2
379 16,716.60 2,302,679 1/1/05 1/1/28 7.0500 360 4
380 18,960.43 2,047,711 1/1/08 7.7970 300 4
381 20,139.83 92,039 1/1/18 7.5000 240 4
382 20,911.00 107,927 12/1/17 8.0000 240 5
383 16,566.09 2,162,406 4/1/08 7.0600 360 1
384 20,287.76 - 7/1/17 7.5000 237 7
385 18,694.39 2,024,450 1/1/08 7.7500 300 4
386 19,656.00 - 12/1/17 7.2700 239 4
387 16,748.18 223,446 2/1/28 7.2300 360 3
388 16,448.26 2,142,257 4/1/08 7.0900 360 1
389 18,783.43 1,628,468 12/1/12 7.8750 300 5
390 16,763.20 2,153,213 3/1/08 7.2800 360 2
391 24,305.97 66,605 12/1/12 8.6250 180 5
392 16,292.54 2,104,954 3/1/08 7.2010 360 2
393 16,144.95 2,099,949 3/1/08 7.1100 360 2
394 16,814.03 2,083,997 2/1/08 7.5200 360 3
395 16,576.20 2,112,871 1/1/08 7.3750 360 4
396 16,502.66 1,863,416 12/1/12 7.3300 360 5
397 17,193.89 2,133,162 10/1/07 7.7500 360 7
398 20,710.39 1,876,126 11/1/07 8.8750 264 6
399 19,334.24 1,662,473 1/1/08 7.5000 240 4
400 19,518.09 92,977 12/1/17 7.6250 240 5
401 19,907.27 102,748 12/1/17 8.0000 240 5
402 15,743.34 2,050,445 4/1/08 7.0900 360 1
403 Step* 733,651 9/1/17 7.5700 283 3
404 17,550.14 975,171 1/1/18 7.6200 300 4
405 16,721.06 1,845,732 12/1/12 7.7500 360 5
406 16,560.29 2,064,638 3/1/08 7.6900 360 2
407 17,265.18 2,145,715 7/1/07 7/1/27 8.1400 360 10
408 18,521.79 - 7/1/17 7.1250 234 4
409 15,499.53 1,996,076 2/1/08 7.0200 360 3
410 16,698.72 1,823,634 2/1/08 7.3000 300 3
411 16,318.43 2,030,532 1/1/08 7.7060 360 4
412 17,671.97 - 1/1/18 7.0000 239 3
413 21,008.81 48,075 3/1/13 7.4375 180 2
414 15,294.74 1,741,109 2/1/13 2/1/28 7.1700 360 3
415 16,759.24 933,871 4/1/18 7.5900 300 1
416 15,151.07 1,969,220 3/1/08 7.1200 360 2
417 14,796.33 1,940,024 4/1/08 7.0000 360 1
418 15,299.34 1,957,988 3/1/08 7.3300 360 2
419 14,802.98 2,047,806 12/5/04 7.0000 360 5
420 16,045.30 1,785,024 3/1/08 3/1/23 7.3000 300 2
421 16,358.05 2,032,977 7/1/07 7/1/27 8.1400 360 10
422 15,397.79 1,944,875 3/1/08 3/1/28 7.5100 360 2
423 15,217.35 1,938,965 3/1/08 3/1/28 7.3900 360 2
424 17,560.57 1,193,735 4/1/13 7.8750 264 1
425 16,747.44 1,805,873 3/1/08 7.8400 300 2
426 Step* - 10/1/12 7.6250 176 3
427 15,241.76 1,719,176 3/1/08 6.7800 300 2
428 14,963.14 1,929,125 1/1/08 1/1/28 7.2200 360 4
429 17,295.09 77,120 3/1/18 7.1800 240 2
430 17,162.53 1,819,497 12/1/07 8.1250 300 5
431 15,322.75 1,932,269 4/1/08 7.5300 360 1
<CAPTION>
Remaining Term Remaining LTV at
Control to ARD or Maturity Lockout Cut-off Date ARD or
No. (months) Months DSCR (x) LTV (%) Maturity (%)
<S> <C> <C> <C> <C> <C>
370 113 41 1.28x 78.7% 69.9%
371 119 47 1.31 74.7 60.9
372 118 46 1.27 67.0 59.2
373 116 44 1.31 77.3 68.8
374 117 45 1.30 68.7 56.0
375 116 44 1.37 74.7 61.6
376 114 42 1.44 74.7 65.6
377 120 24 1.25 72.5 63.6
378 118 46 1.31 65.6 52.8
379 80 44 1.25 62.3 57.6
380 116 44 1.46 63.3 52.1
381 236 56 1.42 62.8 2.3
382 235 24 1.51 66.1 2.9
383 119 47 1.33 79.8 69.8
384 230 113 1.19 83.1 0.0
385 116 44 1.61 74.7 61.4
386 235 116 NAP NAP 0.0
387 357 45 1.45 74.4 6.8
388 119 47 1.45 74.2 64.9
389 175 43 1.36 74.2 49.4
390 118 46 1.57 74.1 65.3
391 175 55 1.88 69.1 1.9
392 118 46 1.42 80.2 70.4
393 118 46 1.26 68.5 60.0
394 117 45 1.36 71.5 62.2
395 116 44 1.41 77.2 68.2
396 175 19 1.41 67.4 52.5
397 113 41 1.54 74.7 66.7
398 114 42 1.41 62.7 49.4
399 116 44 1.32 70.1 48.9
400 235 55 1.42 56.6 2.2
401 235 55 1.41 69.4 3.0
402 119 47 1.42 75.0 65.6
403 232 117 NAP NAP 30.6
404 236 44 1.35 74.3 31.0
405 175 43 1.25 68.2 54.1
406 118 0 1.38 74.9 66.6
407 110 14 1.27 63.6 58.8
408 230 92 NAP NAP 0.0
409 117 45 1.33 74.8 64.4
410 117 45 1.31 71.6 57.0
411 116 44 1.49 74.8 66.6
412 236 93 NAP NAP 0.0
413 178 70 2.23 38.7 0.8
414 177 25 1.20 77.7 60.0
415 239 47 1.40 48.3 20.1
416 118 46 1.43 73.7 64.6
417 119 23 1.44 79.9 69.8
418 118 46 1.32 74.1 65.3
419 79 31 1.66 67.0 61.9
420 118 46 1.48 71.1 57.6
421 110 14 1.72 80.0 73.9
422 118 58 1.38 73.2 64.8
423 118 46 2.05 48.3 42.7
424 179 59 1.65 64.6 35.1
425 118 46 1.54 70.8 58.3
426 173 93 NAP NAP 0.0
427 118 82 1.58 72.0 56.4
428 116 44 1.30 73.7 64.8
429 238 82 1.21 69.6 2.5
430 115 55 1.38 47.6 39.6
431 119 47 1.25 78.0 69.0
</TABLE>
* Refer to the sheet "step" in the file named "FULBBA.XLS" contained in the
back cover of the Preliminary Prospectus Supplement for detailed
information on Monthly Payments for the Mortgage Loan.
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Control Interest-Only Interest-Only Amortization Cut-off Date
No. Property Name Period (months) Period (months) Type Balance ($)
<S> <C> <C> <C> <C> <C>
432 Walgreens Pharmacy (Miami) Balloon $ 2,170,234.76
433 Eckerd Ventnor Fully Amortizing 2,167,394.14
434 Capitol Warehouse Building Fully Amortizing 2,156,227.94
435 North Oaks Manor Apartments Balloon 2,154,267.86
436 6100 Capital Center Balloon 2,153,054.25
437 Rite Aid Virginia Beach Fully Amortizing 2,149,999.09
438 Rite Aid Roanoke Fully Amortizing 2,145,860.84
439 The Business Centre at Riverside Balloon 2,145,240.02
440 The Manors Apartments Balloon 2,142,586.73
441 FAA Building Fully Amortizing 2,141,611.88
442 Eckerd Houma Fully Amortizing 2,126,984.61
443 Antelope Valley Mall Balloon 2,125,000.00
444 Chateau Imperial Balloon 2,120,000.00
445 Glenoaks Apartments Balloon 2,112,568.12
446 Lucky/Sav-On Center Balloon 2,106,979.91
447 Eckerd Winslow Fully Amortizing 2,106,916.60
448 Walgreens - Richmond Fully Amortizing 2,100,455.05
449 Stoughton Plaza Balloon 2,098,425.83
450 PetsMart Inc. Balloon 2,098,410.02
451 Cobblestone Village Shopping Center Balloon 2,098,381.24
452 Villa d'Venus Balloon 2,098,247.85
453 Eckerd Drugs Balloon 2,098,030.42
454 3848-3870 East Foothill Boulevard (East Pasadena) ARD 2,096,994.77
455 Westporte Apartments Balloon 2,096,775.81
456 Best Western St. Augustine Fully Amortizing 2,096,489.79
457 Nalley Valley Self Storage Balloon 2,095,512.36
458 Woodley Apartments Balloon 2,093,358.54
459 Hidden Park Apartments Balloon 2,093,340.17
460 Saum Apartments Balloon 2,093,340.17
461 Days Inn/Kingsland Fully Amortizing 2,093,196.67
462 P Street Balloon 2,092,352.17
463 Canoga Apartments Balloon 2,090,173.44
464 Rite Aid Pharmacy (Liberty) Balloon 2,080,599.32
465 Woodway Apartments Balloon 2,078,377.40
466 CVS Pharmacy (Philadelphia) Fully Amortizing 2,074,140.20
467 Eckerd Wildwood Fully Amortizing 2,072,762.95
468 Arrow Press Properties Balloon 2,064,387.08
469 Northbrook Apartments Balloon 2,057,124.09
470 Best Western Statesville Fully Amortizing 2,051,019.67
471 CVS Drug Store (Martinsville) Fully Amortizing 2,038,393.46
472 Sunnyside Acres Mobile Home Park Balloon 2,022,107.75
473 Auto/Retail Facility (Lauderhill) Balloon 1,997,734.77
474 Campostella Corners Shopping Center Balloon 1,997,261.83
475 Shops at State Bridge ARD 1,995,371.55
476 901 W. Jackson Boulevard Balloon 1,993,832.91
477 155 North Beacon Street Balloon 1,993,519.50
478 Eckerd Oviedo Fully Amortizing 1,991,102.10
479 Fairfield Inn (Musselman-Mt.Sterling) Balloon 1,991,043.78
480 Hampton Inn (Musselman-Elizabethtown) Balloon 1,991,043.78
481 Stone Pine Center Balloon 1,989,373.41
482 CVS Pharmacy (Vernon) Fully Amortizing 1,969,899.72
483 Shannon Square ARD 1,947,537.00
484 The Aspens Balloon 1,947,409.68
485 Casa Del Sol Balloon 1,946,082.26
486 Newtonian Gardens Balloon 1,945,508.29
487 Rite Aid Gaylord Balloon 1,943,949.59
488 Springwood Village Shopping Center Balloon 1,943,757.63
489 Bella Mar Balloon 1,941,881.28
490 Amerihost Inn - Macomb Fully Amortizing 1,932,862.50
491 Amerihost Inn-Lancaster Fully Amortizing 1,932,862.50
492 Amerihost Inn - Logan Fully Amortizing 1,908,082.25
493 Amerihost Inn- Jeffersonville Fully Amortizing 1,908,082.25
<CAPTION>
Balloon/ Original
Control Monthly ARD Gross Amortization Seasoning
No. P&I ($) Balance ARD Maturity Rate (%) Term (months) (months)
<S> <C> <C> <C> <C> <C> <C> <C>
432 $ 16,922.34 $ 419,467 7/1/17 7.4500% 260 3
433 Step* - 10/1/17 7.3100 236 3
434 22,952.35 - 3/1/10 7.5010 144 2
435 14,427.15 1,884,854 2/1/08 7.0390 360 3
436 15,757.56 1,928,565 12/1/07 7.9390 360 5
437 17,186.93 - 8/1/17 7.1700 232 1
438 16,985.41 - 1/1/18 7.1700 237 1
439 15,121.54 1,868,550 2/1/08 7.5600 360 3
440 15,217.57 1,905,004 12/1/07 7.6250 360 5
441 Step* - 8/1/11 7.0600 160 1
442 Step* - 10/1/17 7.0900 236 3
443 16,744.03 1,458,149 5/1/08 7.2100 240 0
444 13,926.89 1,843,340 5/1/08 6.8750 360 0
445 14,282.49 1,856,071 11/1/07 7.1130 360 6
446 14,339.19 1,853,343 12/1/07 7.1880 360 5
447 Step* - 11/1/17 7.6900 237 3
448 17,827.32 - 12/1/16 7.7700 233 10
449 14,611.67 1,853,360 4/1/08 7.4500 360 1
450 14,539.98 1,851,007 4/1/08 7.4000 360 1
451 14,411.26 1,846,753 4/1/08 7.3100 360 1
452 13,844.65 1,827,465 4/1/08 6.9100 360 1
453 14,875.83 1,783,764 4/1/08 7.3750 330 1
454 14,041.94 1,754,530 3/1/10 3/1/28 7.0500 360 2
455 13,631.73 1,820,218 3/1/08 6.7580 360 2
456 17,728.96 95,741 4/1/18 8.1250 240 1
457 15,314.50 854,449 3/1/18 7.3500 300 2
458 14,294.38 1,841,818 1/1/08 7.2280 360 4
459 14,274.46 1,841,153 1/15/08 7.2140 360 4
460 14,274.46 1,841,153 1/15/08 7.2140 360 4
461 17,402.23 90,368 3/1/18 7.8750 240 2
462 14,504.18 1,849,060 12/1/07 7.3750 360 5
463 14,131.08 1,836,396 11/1/07 7.1130 360 6
464 15,014.60 641,401 1/1/18 7.0200 288 2
465 14,189.27 1,826,336 4/1/08 7.2500 360 1
466 Step* - 2/1/18 6.9700 239 2
467 Step* - 1/1/18 7.6900 239 3
468 15,187.48 1,850,508 1/1/08 7.9990 360 4
469 13,914.77 1,804,395 3/1/08 7.1510 360 2
470 20,330.46 53,276 12/1/12 8.3750 180 5
471 16,350.34 - 12/1/17 7.3200 238 3
472 13,551.35 1,769,404 3/1/08 7.0580 360 2
473 14,831.90 1,626,871 4/1/08 7.5400 300 1
474 13,616.41 1,755,450 3/1/08 7.2300 360 2
475 14,033.68 1,596,489 3/1/08 3/1/23 6.9200 300 2
476 13,787.61 1,759,875 1/1/08 7.3560 360 4
477 15,271.08 1,760,523 2/1/05 7.8750 300 3
478 Step* - 12/1/16 7.1600 227 4
479 15,004.30 1,632,176 1/1/08 7.6720 300 4
480 15,004.30 1,632,176 1/1/08 7.6720 300 4
481 15,123.65 1,636,878 12/1/07 7.7630 300 5
482 15,748.24 - 11/1/17 7.2500 240 6
483 13,701.51 1,725,602 3/1/08 3/1/28 7.5500 360 2
484 13,436.28 1,716,915 3/1/08 7.3510 360 2
485 14,633.03 1,592,897 3/1/08 7.6750 300 2
486 14,132.09 1,737,535 2/1/08 7.8700 360 3
487 14,201.31 580,927 1/1/18 7.1250 284 1
488 14,252.71 1,741,900 12/1/07 7.9590 360 5
489 15,212.24 1,612,376 1/1/08 8.1250 300 4
490 15,858.45 75,543 12/1/17 7.6250 240 5
491 15,858.45 75,543 12/1/17 7.6250 240 5
492 15,655.13 74,578 12/1/17 7.6250 240 5
493 15,655.13 74,578 12/1/17 7.6250 240 5
<CAPTION>
Remaining Term Remaining LTV at
Control to ARD or Maturity Lockout Cut-off Date ARD or
No. (months) Months DSCR (x) LTV (%) Maturity (%)
<S> <C> <C> <C> <C> <C>
432 230 117 NAP NAP 18.2%
433 233 93 NAP NAP 0.0
434 142 46 1.32x 74.4% 0.0
435 117 45 1.53 79.8 69.8
436 115 43 1.28 74.9 67.1
437 231 47 NAP NAP 0.0
438 236 47 NAP NAP 0.0
439 117 45 1.43 69.2 60.3
440 115 43 1.34 75.8 67.4
441 159 47 1.10 63.0 0.0
442 233 93 NAP NAP 0.0
443 120 48 1.30 74.6 51.2
444 120 60 1.39 80.0 69.6
445 114 42 1.48 74.7 65.6
446 115 43 1.57 56.3 49.6
447 234 93 NAP NAP 0.0
448 223 110 NAP NAP 0.0
449 119 47 1.29 74.9 66.2
450 119 47 1.27 79.2 69.9
451 119 59 1.54 58.3 51.3
452 119 23 1.35 79.9 69.6
453 119 47 1.36 77.1 65.6
454 142 76 1.29 78.3 65.5
455 118 58 1.53 74.1 64.3
456 239 24 1.71 69.9 3.2
457 238 46 1.31 67.6 27.6
458 116 44 1.57 74.8 65.8
459 116 44 1.48 77.5 68.2
460 116 44 1.49 77.5 68.2
461 238 46 1.67 71.0 3.1
462 115 43 1.25 76.8 67.9
463 114 42 1.43 74.9 65.8
464 236 94 NAP NAP 30.2
465 119 47 1.31 79.9 70.2
466 237 118 NAP NAP 0.0
467 236 93 NAP NAP 0.0
468 116 44 1.11 75.1 67.3
469 118 46 1.34 69.0 60.6
470 175 55 1.40 66.2 1.7
471 235 117 NAP NAP 0.0
472 118 46 1.31 74.9 65.5
473 119 59 1.41 74.7 60.8
474 118 46 1.30 76.8 67.5
475 118 58 1.34 74.5 59.6
476 116 44 1.54 68.8 60.7
477 81 45 1.45 76.7 67.7
478 223 92 NAP NAP 0.0
479 116 56 1.53 68.7 56.3
480 116 56 1.70 55.3 45.3
481 115 43 1.51 69.8 57.4
482 234 54 NAP NAP 0.0
483 118 46 1.34 74.9 66.4
484 118 46 1.25 77.0 67.9
485 118 46 1.57 56.4 46.2
486 117 45 1.31 64.9 57.9
487 236 71 NAP NAP 30.6
488 115 43 1.30 74.8 67.0
489 116 44 1.42 35.3 29.3
490 235 55 1.42 69.0 2.7
491 235 55 1.49 55.2 2.2
492 235 55 1.40 63.6 2.5
493 235 55 1.41 63.6 2.5
</TABLE>
* Refer to the sheet "step" in the file named "FULBBA.XLS" contained in the
back cover of the Preliminary Prospectus Supplement for detailed
information on Monthly Payments for the Mortgage Loan.
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Control Interest-Only Interest-Only Amortization Cut-off Date
No. Property Name Period (months) Period (months) Type Balance ($)
<S> <C> <C> <C> <C> <C>
494 Eckerd Drug Store (Jacksonville) Balloon $ 1,905,798.57
495 CVS Brazil Fully Amortizing 1,900,652.99
496 Gardner Plaza Balloon 1,898,520.76
497 Lobo Canyon Shopping Center Balloon 1,897,834.17
498 Officemax Free-Standing Retail/Commercial Building Balloon 1,897,760.17
499 Saint Charles Place Balloon 1,894,978.07
500 The In-Line Retail Shop Space (Peoria) Balloon 1,893,035.93
501 Western Hills Shopping Center ARD 1,892,853.54
502 Eckerd Drug Store (Ft. Myers) Fully Amortizing 1,892,262.33
503 Keep it Self Storage - Van Nuys Balloon 1,891,488.86
504 Crystal Inn (Brigham City) ARD 1,891,128.86
505 421 Germantown Pike Balloon 1,891,079.46
506 Katella/Knott Shopping Center Fully Amortizing 1,888,355.34
507 Amerihost Inn-Sycamore Fully Amortizing 1,883,301.94
508 Bashas Square ARD 1,869,403.60
509 Eckerd Shreveport Fully Amortizing 1,864,065.74
510 825 Pine Street Apartments Balloon 1,862,440.71
511 Ocean Villa Townhomes #1 Balloon 1,847,448.95
512 Revco Pharmacy (Decatur) Fully Amortizing 1,840,419.99
513 Burbank Villas Apartments Balloon 1,824,386.08
514 Crestwood Apartments Balloon 1,817,376.36
515 121 Greene Street Balloon 1,800,000.00
516 Payson Center Balloon 1,797,620.30
517 Sunrise Condominiums Balloon 1,794,157.35
518 Village Woods Commons Shopping Center ARD 1,792,241.27
519 Days Inn (Prescott Valley) Fully Amortizing 1,790,697.82
520 Inbus Engineering Building Fully Amortizing 1,777,871.31
521 CVS Pharmacy (Lancaster) Fully Amortizing 1,765,000.00
522 Warehouse Specialists - 1097 Ehlers Road Fully Amortizing 1,764,555.20
523 Cedars St. Paul Apts. Balloon 1,757,481.94
524 McClintock Office Plaza Balloon 1,748,704.62
525 Galaxy Shopping Center ARD 1,745,149.43
526 Crestwood Station Shopping Center ARD 1,744,600.57
527 Village Pines Balloon 1,742,848.98
528 395-435 East O'Keefe Street Balloon 1,741,530.67
529 Price Savers Center ARD 1,722,787.60
530 Indian Village Shopping Center Fully Amortizing 1,708,262.64
531 Caledon Wood Professional Park ARD 1,705,674.66
532 4445 West 16th Street Balloon 1,698,200.81
533 6 Fortune Drive Balloon 1,697,966.99
534 Fairmount Apartments Balloon 1,697,942.60
535 Palms Apartments Balloon 1,697,751.38
536 Georgetown Village Apartments Balloon 1,697,602.64
537 336 Washington Street (Boston Private) ARD 1,697,590.85
538 CVS Tipton Fully Amortizing 1,668,582.84
539 State Farm Cranford Fully Amortizing 1,666,978.73
540 La Jolla Court Apartments Balloon 1,652,187.67
541 CVS York Fully Amortizing 1,645,957.00
542 Hodges Warehouse (Hodges II) Fully Amortizing 1,645,107.98
543 Kling Street Apartments Balloon 1,635,711.37
544 Eckerd Drug Store (Camden) Fully Amortizing 1,631,475.16
545 CVS Drug Store (Mableton) Fully Amortizing 1,605,822.34
546 CVS Rockville Fully Amortizing 1,604,207.35
547 CVS Edinburgh Fully Amortizing 1,599,803.95
548 Fry's Greenfield Plaza Balloon 1,597,884.71
549 Target Center Balloon 1,596,484.25
550 CVS Greece Fully Amortizing 1,595,748.59
551 Ames Plaza (Amenia) Balloon 1,595,195.82
552 North Creek Townhomes Balloon 1,594,881.62
553 Hilltop Village Shopping Center ARD 1,594,743.67
554 Friendly Square Shopping Center Balloon 1,588,764.57
555 Eckerd Oldsmar Fully Amortizing 1,587,542.88
<CAPTION>
Balloon/ Original
Control Monthly ARD Gross Amortization Seasoning
No. P&I ($) Balance ARD Maturity Rate (%) Term (months) (months)
<S> <C> <C> <C> <C> <C> <C> <C>
494 $ 13,875.41 $ 773,007 1/1/18 7.2800% 298 2
495 14,839.26 - 11/1/17 6.9375 237 3
496 12,974.24 1,668,719 4/1/08 7.2600 360 1
497 14,040.83 1,543,676 4/1/08 7.5000 300 1
498 13,782.33 1,533,895 4/1/08 7.2900 300 1
499 12,720.60 1,658,996 2/1/08 7.0625 360 3
500 14,260.71 1,708,249 11/1/07 8.2400 360 6
501 13,891.55 1,611,719 1/1/08 1/1/25 7.6560 324 4
502 14,814.38 - 9/1/17 6.9200 234 2
503 14,251.60 791,862 1/1/18 7.6700 300 4
504 13,929.79 1,227,294 12/31/12 1/1/23 7.4100 300 4
505 13,886.71 1,536,892 1/1/08 7.3750 300 4
506 17,472.09 - 3/1/13 7.3690 180 2
507 15,451.82 73,608 12/1/17 7.6250 240 5
508 13,135.96 1,656,723 1/1/08 1/1/28 7.5200 360 4
509 Step* - 9/1/17 7.7800 237 5
510 13,456.40 1,663,654 11/1/07 7.7960 360 6
511 12,558.83 1,622,569 3/1/08 7.2010 360 2
512 14,490.34 - 1/1/18 7.1000 237 1
513 12,217.72 1,596,101 3/1/08 7.0510 360 2
514 12,132.96 1,588,681 3/1/08 7.0200 360 2
515 12,536.60 1,589,200 5/1/08 7.4600 360 0
516 12,426.02 1,585,615 3/1/08 7.3700 360 2
517 12,091.72 1,573,297 1/1/08 7.0960 360 4
518 13,785.55 1,479,199 1/1/08 1/1/23 7.9100 300 4
519 14,984.31 - 2/1/18 7.9360 240 3
520 16,590.22 - 1/1/13 7.4060 180 4
521 Step* - 2/1/19 6.9000 249 0
522 16,391.49 37,508 3/1/13 7.4375 180 2
523 11,769.67 1,537,568 3/1/08 7.0510 360 2
524 12,251.84 1,546,923 4/1/08 7.5130 360 1
525 12,706.94 1,560,367 1/1/08 1/1/28 7.8900 360 4
526 12,060.59 1,539,772 1/1/08 1/1/28 7.3530 360 4
527 12,796.06 1,408,020 1/1/08 7.3800 300 4
528 11,910.80 1,531,967 2/1/08 7.2500 360 3
529 12,049.64 1,095,413 3/1/18 3/1/28 7.4900 360 2
530 15,127.09 - 1/1/15 7.6400 204 4
531 11,746.57 1,503,061 2/1/08 2/1/28 7.3200 360 3
532 12,171.66 1,511,242 3/1/08 7.7400 358 0
533 12,233.01 1,368,654 4/1/08 7.2000 300 1
534 12,151.15 1,365,493 4/1/08 7.1250 300 1
535 11,733.37 1,497,449 3/1/08 7.3680 360 2
536 11,436.01 1,487,463 3/1/08 7.1100 360 2
537 11,413.09 1,306,748 3/1/13 3/1/28 7.0900 360 2
538 13,339.39 - 11/1/17 7.2500 237 3
539 Step* - 12/1/07 7.5625 120 5
540 12,116.49 1,463,488 1/1/05 7.3600 300 4
541 12,688.15 - 2/1/18 6.8500 239 2
542 15,493.27 - 4/1/13 7.7100 180 1
543 11,048.98 1,434,316 2/1/08 7.1250 360 3
544 Step* - 11/1/17 7.4200 238 4
545 Step* - 1/1/18 6.9700 238 2
546 12,524.77 - 11/1/17 6.9375 237 3
547 12,789.54 - 11/1/17 7.2500 237 3
548 11,045.35 1,409,436 3/1/08 7.3700 360 2
549 11,514.45 1,288,409 3/1/08 7.2010 300 2
550 Step* - 1/1/18 7.0000 238 2
551 11,176.48 1,412,674 1/1/08 7.4900 360 4
552 10,828.14 1,401,185 1/1/08 7.1700 360 4
553 11,860.17 1,303,527 1/1/08 1/1/23 7.5200 298 1
554 10,868.18 1,396,815 4/1/08 7.2700 360 1
555 Step* - 1/1/17 7.3000 230 6
<CAPTION>
Remaining Term Remaining LTV at
Control to ARD or Maturity Lockout Cut-off Date ARD or
No. (months) Months DSCR (x) LTV (%) Maturity (%)
<S> <C> <C> <C> <C> <C>
494 236 118 1.21x 77.8% 31.6%
495 234 93 NAP NAP 0.0
496 119 47 1.54 65.5 57.5
497 119 47 1.33 73.0 59.4
498 119 47 1.33 73.0 59.0
499 117 45 1.50 72.9 63.8
500 114 42 1.42 64.5 58.2
501 116 44 1.28 67.6 57.6
502 232 118 NAP NAP 0.0
503 236 44 1.32 68.8 28.8
504 176 80 1.49 59.1 38.4
505 116 44 1.26 74.2 60.3
506 178 46 1.45 53.7 0.0
507 235 55 1.41 67.3 2.6
508 116 44 1.36 74.8 66.3
509 232 115 NAP NAP 0.0
510 114 42 1.20 70.0 62.5
511 118 46 1.40 80.3 70.6
512 236 119 NAP NAP 0.0
513 118 46 1.34 73.0 63.8
514 118 46 1.31 63.8 55.7
515 120 48 1.37 75.0 66.2
516 118 46 1.36 71.9 63.4
517 116 44 1.30 64.7 56.7
518 116 56 1.34 74.7 61.6
519 237 117 1.45 74.6 0.0
520 176 44 1.38 53.2 0.0
521 249 120 NAP NAP 0.0
522 178 70 1.54 53.5 1.1
523 118 46 1.51 78.1 68.3
524 119 59 1.34 74.4 65.8
525 116 44 1.40 72.7 65.0
526 116 44 1.85 38.8 34.2
527 116 44 1.26 79.2 64.0
528 117 45 1.27 72.6 63.8
529 238 142 1.38 74.9 47.6
530 200 80 1.45 74.3 0.0
531 117 45 1.34 74.8 65.9
532 118 46 1.42 60.7 54.0
533 119 47 1.36 60.6 48.9
534 119 47 1.26 77.2 62.1
535 118 46 1.34 74.8 66.0
536 118 46 1.25 78.6 68.9
537 178 82 1.36 72.2 55.6
538 234 93 NAP NAP 0.0
539 115 43 NAP NAP 0.0
540 80 32 1.33 74.6 66.1
541 237 94 NAP NAP 0.0
542 179 83 1.29 65.8 0.0
543 117 45 1.28 79.8 70.0
544 234 116 NAP NAP 0.0
545 236 118 NAP NAP 0.0
546 234 93 NAP NAP 0.0
547 234 93 NAP NAP 0.0
548 118 46 1.65 63.9 56.4
549 118 46 1.56 74.6 60.2
550 236 94 NAP NAP 0.0
551 116 32 1.38 63.8 56.5
552 116 24 1.28 72.5 63.7
553 116 44 1.34 66.5 54.3
554 119 35 1.36 69.1 60.7
555 224 90 NAP NAP 0.0
</TABLE>
* Refer to the sheet "step" in the file named "FULBBA.XLS" contained in the
back cover of the Preliminary Prospectus Supplement for detailed
information on Monthly Payments for the Mortgage Loan.
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Control Interest-Only Interest-Only Amortization Cut-off Date
No. Property Name Period (months) Period (months) Type Balance ($)
<S> <C> <C> <C> <C> <C>
556 Henderson Mall Balloon $ 1,575,000.00
557 Anchor Self Storage - Glendora Balloon 1,556,622.29
558 8614 Burton Way Apts. Balloon 1,548,751.88
559 Four Industrial Buildings (Great S.W. Industrial) Balloon 1,546,386.62
560 Spa Business Center Balloon 1,545,038.11
561 Warehouse Specialists - Harrison Street Fully Amortizing 1,540,879.18
562 Port Jefferson Medical Park ARD 1,520,687.32
563 Ashcroft Industrial Park ARD 1,515,445.10
564 8586-8588 Potter Park Drive (Palmer Ranch) Balloon 1,498,880.08
565 New Hampshire Apartments Balloon 1,498,839.13
566 Villa Fontana Apartments Balloon 1,496,067.38
567 Briarcliff Fully Amortizing 1,493,242.99
568 Norton Plaza Shopping Center Balloon 1,492,989.06
569 Duna Vista Mobile Home Park Fully Amortizing 1,486,040.28
570 Calvert Apartments Balloon 1,470,406.50
571 177 E. Evelyn Avenue Balloon 1,467,025.62
572 Oakland State Garage Balloon 1,462,085.02
573 IHOP Kannapolis Fully Amortizing 1,457,928.76
574 Park Rochester Apartments Balloon 1,453,916.87
575 West Town Professional Center Balloon 1,446,464.48
576 CVS Aiken Fully Amortizing 1,436,118.62
577 Garage Loft Apartments ARD 1,435,402.50
578 Rite-Aid Pharmacy (Waynesburg) Balloon 1,426,496.18
579 Forest Glen Balloon 1,421,618.18
580 Revco Drug Store Balloon 1,420,431.88
581 Rite Aid Pharmacey (Hogansville) Fully Amortizing 1,413,906.15
582 Revco Pharmacy (Oak Ridge) Fully Amortizing 1,413,228.06
583 Imperial Plaza Office Building ARD 1,398,946.34
584 Overlook Court Balloon 1,398,927.25
585 10051 Pasadena Avenue Balloon 1,397,163.99
586 Clifford Pacific Business Park Balloon 1,396,259.85
587 Glynbrook Estates Balloon 1,395,038.52
588 Cypress Winds Balloon 1,390,838.57
589 66 West 84th Street ARD 1,376,574.41
590 Canon Perdido Balloon 1,373,982.61
591 Panorama Medical Arts Building Balloon 1,365,634.97
592 IHOP Gastonia Fully Amortizing 1,362,341.15
593 Taylor Gardens Balloon 1,346,725.69
594 Tara Ridge Apartments Balloon 1,346,566.52
595 Camelot and Circle Inn Mobile Home Parks Balloon 1,345,749.00
596 Shoppes of Pembroke ARD 1,326,253.83
597 Normandy Retail Center Balloon 1,298,285.64
598 La Tijera Manor Apartments Balloon 1,298,280.46
599 Applied Companies Building Balloon 1,297,300.01
600 238-268 Post Road Balloon 1,295,028.76
601 Warehouse Specialists - 1286 Ehlers Road Fully Amortizing 1,292,350.28
602 Warehouse Specialists - Dixie Street Fully Amortizing 1,292,350.28
603 Unicom Plaza Fully Amortizing 1,284,407.81
604 IHOP Wilmington Fully Amortizing 1,264,040.35
605 Eckerd Kernersville Fully Amortizing 1,258,690.89
606 Eckerds Easley Fully Amortizing 1,256,879.83
607 Rincon Plaza Balloon 1,253,340.82
608 Eckerd Store (Mt. Holly) Fully Amortizing 1,235,810.25
609 University Court Apartments Balloon 1,230,003.85
610 Patrick Business Park Balloon 1,225,749.60
611 Eckerd Store (Florence) Fully Amortizing 1,217,660.73
612 222 Post Road Balloon 1,215,334.67
613 Ocean Villa Townhomes #3 Balloon 1,198,345.26
614 Kennestone Corners Business Center Balloon 1,197,430.82
615 Kings Tree Apartments Balloon 1,196,993.15
616 Rite Aid Pharmacy (Williamsport) Fully Amortizing 1,192,416.56
617 CVS Pharmacy (Westbrook) Fully Amortizing 1,162,826.18
<CAPTION>
Balloon/ Original
Control Monthly ARD Gross Amortization Seasoning
No. P&I ($) Balance ARD Maturity Rate (%) Term (months) (months)
<S> <C> <C> <C> <C> <C> <C> <C>
556 $ 12,147.87 $ 1,126,958 5/1/08 7.2100% 252 0
557 11,305.96 1,259,247 3/1/08 7.2800 300 2
558 10,406.04 1,355,306 4/1/08 7.0900 360 1
559 11,333.65 1,231,642 3/1/08 7.3800 300 2
560 11,329.08 1,384,587 12/1/07 7.9590 360 5
561 14,313.70 32,753 3/1/13 7.4375 180 2
562 10,967.47 1,356,466 1/1/08 1/1/28 7.7900 360 4
563 10,628.06 1,342,378 1/1/08 1/1/28 7.5000 360 4
564 10,457.42 1,324,498 4/1/08 7.4700 360 1
565 10,273.37 1,387,500 4/1/05 7.2900 360 1
566 10,090.60 1,311,361 2/1/08 7.1100 360 3
567 11,216.92 98,025 1/1/23 7.6350 300 4
568 10,710.86 1,329,269 2/1/08 7.7400 360 3
569 13,703.94 - 2/1/13 7.2630 180 3
570 10,118.19 1,296,252 1/1/08 7.3060 360 4
571 10,995.46 1,199,482 3/1/08 7.6380 300 2
572 12,021.78 1,027,554 12/1/07 7.6540 240 5
573 Step* - 9/1/22 7.8750 293 1
574 9,736.73 1,271,988 3/1/08 7.0510 360 2
575 10,173.38 1,281,462 2/1/08 7.5350 360 3
576 11,306.74 - 2/1/18 7.1250 238 1
577 9,755.07 1,261,393 1/1/08 1/1/28 7.1800 360 4
578 10,852.98 470,001 12/1/15 7.2300 263 1
579 9,682.38 1,228,800 2/1/08 7.2100 360 3
580 9,835.21 1,253,433 2/1/08 7.3750 360 3
581 11,756.17 - 2/1/17 7.5400 230 5
582 Step* - 8/1/15 7.3400 208 1
583 9,721.99 1,234,946 4/1/08 4/1/28 7.4300 360 1
584 9,636.08 1,232,116 4/1/08 7.3400 360 1
585 10,466.38 1,142,159 3/1/08 7.6320 300 2
586 9,314.23 1,288,286 2/1/05 7.0000 360 3
587 9,789.00 1,236,608 12/1/07 7.5000 360 5
588 9,177.03 1,211,347 4/1/08 6.9100 360 1
589 9,583.10 1,216,392 2/1/08 2/1/28 7.4300 360 3
590 9,628.33 1,215,500 4/1/08 7.5150 360 1
591 10,033.48 1,224,410 12/1/07 7.9800 360 5
592 Step* - 12/1/21 7.8750 284 1
593 9,072.43 1,161,178 2/1/08 7.1000 360 3
594 9,395.62 1,056,458 3/1/08 6.8300 300 2
595 9,209.38 1,184,697 1/1/08 7.2500 360 4
596 9,583.49 1,054,074 1/1/13 1/1/28 7.8100 360 4
597 8,983.21 1,145,459 3/1/08 7.3800 360 2
598 8,972.58 1,145,107 3/1/08 7.3680 360 2
599 9,607.73 1,056,430 3/1/08 7.5010 300 2
600 9,337.94 829,284 2/1/13 7.1800 300 3
601 12,005.04 27,469 3/1/13 7.4375 180 2
602 12,005.04 27,469 3/1/13 7.4375 180 2
603 12,192.69 - 1/1/13 7.6910 180 4
604 Step* - 9/1/21 7.8750 281 1
605 Step* - 6/1/17 7.1250 230 1
606 Step* - 2/1/17 6.7900 227 2
607 8,663.70 1,105,526 3/1/08 7.3700 360 2
608 10,223.72 - 6/1/17 7.5800 235 6
609 8,559.29 980,741 2/1/08 6.7840 300 3
610 8,697.40 1,089,571 12/1/07 7.6150 360 5
611 10,094.07 - 1/1/17 7.4700 229 5
612 8,763.30 778,250 2/1/13 7.1800 300 3
613 8,146.27 1,052,477 3/1/08 7.2010 360 2
614 8,743.38 970,428 3/1/08 7.3400 300 2
615 8,288.10 1,056,263 2/1/08 7.3750 360 3
616 9,573.00 - 2/1/17 7.0600 228 3
617 9,433.54 - 10/1/17 7.4200 239 6
<CAPTION>
Remaining Term Remaining LTV at
Control to ARD or Maturity Lockout Cut-off Date ARD or
No. (months) Months DSCR (x) LTV (%) Maturity (%)
<S> <C> <C> <C> <C> <C>
556 120 48 1.28x 67.7% 48.5%
557 118 46 1.30 65.5 53.0
558 119 47 1.31 70.4 61.6
559 118 46 1.67 44.2 35.2
560 115 43 1.33 74.5 66.7
561 178 70 1.46 64.2 1.4
562 116 80 1.26 62.1 55.4
563 116 44 1.30 77.7 68.8
564 119 59 1.29 74.9 66.2
565 83 24 1.28 74.9 69.4
566 117 45 1.39 74.8 65.6
567 296 24 1.43 67.9 4.5
568 117 45 1.25 69.4 61.8
569 177 45 1.14 55.0 0.0
570 116 44 1.50 79.9 70.5
571 118 46 1.53 69.9 57.1
572 115 43 1.42 75.0 52.7
573 292 95 NAP NAP 0.0
574 118 46 1.54 56.6 49.5
575 117 45 1.48 72.3 64.1
576 237 35 NAP NAP 0.0
577 116 44 1.40 79.7 70.1
578 211 95 NAP NAP 32.1
579 117 45 1.38 74.8 64.7
580 117 45 1.29 80.3 70.8
581 225 115 NAP NAP 0.0
582 207 119 NAP NAP 0.0
583 119 47 1.23 79.9 70.6
584 119 59 1.27 72.5 63.8
585 118 46 1.38 65.0 53.1
586 81 33 1.36 72.1 66.5
587 115 43 1.30 73.4 65.1
588 119 23 1.29 79.9 69.6
589 117 57 1.33 68.8 60.8
590 119 47 1.29 65.4 57.9
591 115 43 1.36 78.0 70.0
592 283 95 NAP NAP 0.0
593 117 45 1.47 74.8 64.5
594 118 82 1.29 77.0 60.4
595 116 44 1.43 74.8 65.8
596 176 116 1.32 74.7 59.4
597 118 46 1.42 72.1 63.6
598 118 46 1.45 74.2 65.4
599 118 46 1.65 59.5 48.5
600 177 87 1.27 70.0 44.8
601 178 70 1.53 51.7 1.1
602 178 70 1.51 54.5 1.2
603 176 44 1.06 69.4 0.0
604 280 95 NAP NAP 0.0
605 229 47 NAP NAP 0.0
606 225 94 NAP NAP 0.0
607 118 46 1.31 74.6 65.8
608 229 90 NAP NAP 0.0
609 117 45 1.55 76.9 61.3
610 115 43 1.34 75.9 67.5
611 224 115 NAP NAP 0.0
612 177 87 1.34 71.5 45.8
613 118 46 1.47 76.8 67.5
614 118 58 1.29 65.3 52.9
615 117 45 1.27 66.5 58.7
616 225 141 NAP NAP 0.0
617 233 114 NAP NAP 0.0
</TABLE>
* Refer to the sheet "step" in the file named "FULBBA.XLS" contained in the
back cover of the Preliminary Prospectus Supplement for detailed
information on Monthly Payments for the Mortgage Loan.
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Control Interest-Only Interest-Only Amortization Cut-off Date
No. Property Name Period (months) Period (months) Type Balance ($)
<S> <C> <C> <C> <C> <C>
618 Brookhill Plaza Balloon $ 1,158,791.94
619 Lexington Village Apartments Balloon 1,149,068.46
620 2715 Agate Court Balloon 1,147,038.62
621 Townsgate Atrium Balloon 1,130,478.49
622 Carey Hill Plaza Balloon 1,120,962.08
623 Edison Apartments Balloon 1,102,685.96
624 Warehouse Specialists - Bell Street Fully Amortizing 1,093,527.16
625 Warehouse Specialists - Combined Locks Fully Amortizing 1,093,527.16
626 A-Advance Self-Storage Fully Amortizing 1,083,699.73
627 Williamstown Bay Balloon 1,074,983.00
628 52 Liberty Street Balloon 1,064,955.41
629 Highview Apartments Balloon 1,060,000.00
630 Kingwood Balloon 1,059,090.79
631 Nob Hill Office Park Balloon 1,048,643.01
632 North Post Oak Business Center ARD 1,047,141.55
633 Morningside Square Apartments Balloon 1,044,004.88
634 Randall Court Apartments Balloon 1,012,794.54
635 Dillard Office Building Balloon 997,934.48
636 128th Street Warehouse Balloon 997,930.56
637 Briarcliff Mews Apartments Balloon 997,476.59
638 Westgate Apartments Balloon 997,277.19
639 Broadmoor Apartments Balloon 997,248.62
640 Wolfpack Village Apartments Fully Amortizing 995,293.89
641 William Tell Apartments Balloon 993,266.00
642 13Th South Self Storage Balloon 992,949.59
643 19-25 Brighton Avenue Balloon 989,227.70
644 The In-Line Shop Space (Chandler) ARD 972,608.45
645 Haverford Apartments Balloon 970,329.45
646 Crates shopping center Balloon 958,969.88
647 Dahnert Park Apartments ARD 957,508.82
648 Roger Post Balloon 950,688.06
649 Ruffolo Plaza Balloon 933,851.66
650 Continental House Balloon 930,000.00
651 NTB Store Site Fully Amortizing 918,191.46
652 Pier 1 Imports ARD 899,313.12
653 Sunbelt Newport News Fully Amortizing 891,617.14
654 Northpointe Apartments Balloon 886,820.11
655 Francesca Apartments Balloon 879,261.42
656 514 - 524 Huron Blvd. SE Balloon 862,793.79
657 4030 Pacheco Boulevard Balloon 834,233.40
658 USPS Fallon Fully Amortizing 828,685.79
659 Las Flores Apartments Balloon 817,376.30
660 Woodlawn Village Balloon 786,130.46
661 Monmouth Beach Village Fully Amortizing 780,000.00
662 325 North Howard Street Balloon 773,913.25
663 Pikesville Professional Building Balloon 767,358.36
664 Washington Place Balloon 764,538.46
665 1416-1430 S. Main Street Balloon 758,402.60
666 Hodges Warehouse and Corporate Offices (Hodges I) Fully Amortizing 747,776.36
667 Commerce Square Shopping Center Balloon 747,308.05
668 Villa Apartments Balloon 737,006.36
669 Magnolia Balloon 722,827.14
670 Blockbuster Video Store Balloon 695,387.84
671 Creamery Hills Fully Amortizing 606,231.70
672 13348 Newport Boulevard (Walgreen - Tustin) Fully Amortizing 494,859.06
673 Wells Court Fully Amortizing 490,000.00
674 Logan Square Shopping Center Balloon 448,384.84
675 2486 Morris Avenue Balloon 438,203.46
676 Branford Apartments Balloon 408,723.18
Total $ 3,475,264,083
===============
<CAPTION>
Balloon/ Original
Control Monthly ARD Gross Amortization Seasoning
No. P&I ($) Balance ARD Maturity Rate (%) Term (months) (months)
<S> <C> <C> <C> <C> <C> <C> <C>
618 $ 8,509.76 $ 1,038,838 12/1/07 7.9750% 360 5
619 7,697.37 1,004,755 4/1/08 7.0600 360 1
620 7,817.75 1,008,118 2/1/08 7.2150 360 3
621 8,220.09 1,011,396 11/1/07 7.8630 360 6
622 8,405.34 916,641 2/1/08 7.6250 300 3
623 7,459.73 967,882 1/1/08 7.1340 360 4
624 10,158.11 23,244 3/1/13 7.4375 180 2
625 10,158.11 23,244 3/1/13 7.4375 180 2
626 10,425.36 - 12/1/12 7.8630 180 5
627 8,751.16 541,259 2/1/23 9.1100 360 3
628 7,651.28 949,047 1/1/08 7.7500 360 4
629 7,231.07 930,843 5/1/08 7.2500 360 0
630 7,309.30 825,339 12/1/12 7.3300 360 5
631 7,313.02 927,063 3/1/08 7.4600 360 2
632 6,908.28 964,379 2/1/05 2/1/28 6.8900 360 3
633 7,651.14 848,620 12/1/07 7.3410 300 5
634 6,924.02 876,713 1/1/08 7.2400 360 4
635 7,409.44 813,345 3/1/08 7.5300 300 2
636 7,402.93 813,101 3/1/08 7.5200 300 2
637 6,991.43 783,676 3/1/08 6.8800 300 2
638 6,578.65 869,156 2/1/08 6.8890 360 3
639 6,537.91 867,738 2/1/08 6.8280 360 3
640 7,299.09 - 1/1/23 7.3600 300 4
641 7,389.91 811,971 11/1/07 7.5000 300 6
642 7,718.16 824,134 10/1/07 8.0000 300 7
643 6,753.55 869,265 4/1/08 7.2500 360 1
644 6,817.34 860,920 2/1/08 2/1/28 7.5000 360 3
645 6,862.13 862,689 10/1/07 7.5670 360 7
646 7,330.12 635,911 4/1/13 7.8750 300 1
647 6,496.88 739,586 2/1/13 2/1/28 7.1700 360 3
648 6,404.46 819,705 2/1/08 7.1000 360 3
649 7,084.98 767,247 1/1/08 7.7500 300 4
650 6,109.44 808,634 5/1/08 6.8750 360 0
651 Step* - 1/1/18 7.2900 238 2
652 6,206.88 792,480 4/1/08 4/1/28 7.3600 360 1
653 Step* - 11/1/17 8.1250 236 2
654 6,118.07 781,837 3/1/08 7.3500 360 2
655 5,783.91 808,326 4/1/05 6.8800 360 1
656 5,836.10 756,795 3/1/08 7.1510 360 2
657 5,904.55 740,244 2/1/08 7.6000 360 3
658 6,965.62 - 8/1/17 7.8500 233 2
659 5,548.87 718,088 1/1/08 7.1690 360 4
660 5,354.19 679,505 2/1/08 7.2100 360 3
661 5,168.42 66,807 5/1/28 6.9600 360 0
662 5,225.50 678,519 3/1/08 7.1330 360 2
663 5,700.25 614,152 2/1/08 7.5200 300 3
664 5,893.04 361,569 4/1/23 8.5200 360 1
665 5,585.72 616,433 3/1/08 7.4380 300 2
666 7,042.39 - 4/1/13 7.7100 180 1
667 5,603.56 611,094 2/1/08 7.6250 300 3
668 5,128.64 587,651 2/1/08 6.7840 300 3
669 5,446.68 652,084 12/1/07 8.2500 360 5
670 5,577.75 583,059 10/1/07 8.3750 300 7
671 4,313.85 65,346 1/1/28 7.6500 360 4
672 4,645.27 - 5/1/12 7.0600 171 3
673 3,621.06 35,191 5/1/23 7.5000 300 0
674 3,362.13 366,658 2/1/08 7.6250 300 3
675 3,152.21 391,010 11/1/07 7.7500 360 6
676 2,812.51 360,315 1/1/08 7.3060 360 4
<CAPTION>
Remaining Term Remaining LTV at
Control to ARD or Maturity Lockout Cut-off Date ARD or
No. (months) Months DSCR (x) LTV (%) Maturity (%)
<S> <C> <C> <C> <C> <C>
618 115 43 1.31x 74.8% 67.0%
619 119 47 1.33 76.6 67.0
620 117 45 1.38 54.6 48.0
621 114 42 1.44 70.7 63.2
622 117 45 1.25 72.3 59.1
623 116 44 1.38 77.1 67.7
624 178 70 1.39 57.9 1.2
625 178 70 1.42 67.1 1.4
626 175 43 1.38 63.8 0.0
627 297 24 1.21 73.6 37.1
628 116 44 1.27 74.7 66.6
629 120 48 1.23 81.5 71.6
630 175 19 1.29 29.8 23.3
631 118 46 1.23 65.1 57.6
632 81 45 1.42 74.8 68.9
633 115 43 1.45 74.6 60.6
634 116 44 1.47 79.1 68.5
635 118 46 1.28 73.9 60.3
636 118 46 1.36 73.9 60.2
637 118 82 1.29 78.2 61.5
638 117 45 1.70 64.8 56.4
639 117 45 1.58 66.5 57.9
640 296 140 1.68 57.7 0.0
641 114 42 1.42 66.2 54.1
642 113 41 1.46 59.5 49.4
643 119 35 1.27 77.6 68.2
644 117 45 1.61 74.8 66.2
645 113 41 1.19 65.6 58.3
646 179 11 1.32 75.2 49.9
647 177 33 1.24 79.8 61.6
648 117 45 1.37 74.9 64.5
649 116 44 1.34 74.7 61.4
650 120 60 1.59 71.5 62.2
651 236 118 NAP NAP 0.0
652 119 47 1.36 74.9 66.0
653 234 94 NAP NAP 0.0
654 118 46 1.38 79.9 70.4
655 83 35 1.21 79.9 73.5
656 118 46 1.31 79.9 70.1
657 117 45 1.42 74.8 66.4
658 231 94 NAP NAP 0.0
659 116 44 1.47 76.4 67.1
660 117 45 1.40 74.9 64.7
661 360 48 1.32 80.0 6.9
662 118 46 1.26 77.4 67.9
663 117 45 1.28 69.8 55.8
664 299 179 1.31 85.0 40.2
665 118 46 1.74 55.8 45.3
666 179 83 1.26 62.3 0.0
667 117 45 1.37 74.7 61.1
668 117 45 1.39 69.9 55.7
669 115 43 1.31 77.3 69.7
670 113 41 1.32 63.2 53.0
671 356 24 1.24 77.7 8.4
672 168 81 NAP NAP 0.0
673 300 156 2.55 30.2 2.2
674 117 45 1.29 74.7 61.1
675 114 42 1.36 74.3 66.3
676 116 44 1.42 80.1 70.7
</TABLE>
* Refer to the sheet "step" in the file named "FULBBA.XLS" contained in the
back cover of the Preliminary Prospectus Supplement for detailed
information on Monthly Payments for the Mortgage Loan.
<PAGE>
First Union / Lehman Brothers / Bank of America Commercial Mortgage Trust
1998-C2
Multifamily Schedule
<TABLE>
<CAPTION>
Control Cut-off Date # of Avg Rent # of
No. Property Name Balance ($) Utilities paid by Tenant Studios Studios ($) 1 Bed
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
6 Oakwood Village $ 63,766,163 varies 0 NAP 790
11 The Ridge Gardens Apartments 22,168,012 all 0 NAP 138
13 Peach Tree Apartments 21,172,008 Electric 2 $800 148
14 St. Andrews Place 20,942,733 Electric, Water & Sewer 0 NAP 108
15 Hunt Club 20,806,342 Electric 0 NAP 165
16 100 West Chestnut St. 20,000,000 Electric 56 1000 112
18 Holly Hall 17,697,000 Electric 0 NAP 337
20 Richardson Highlands 16,847,577 Electric 0 NAP 135
25 Quince Orchard I Apartments 15,161,954 Electric 0 NAP 150
26 Levittown Trace Apartments 14,522,217 Electric 0 NAP 431
28 Peachtree Walk 14,452,039 Electric 0 NAP 103
34 Stone Creek / Waters Landing 13,365,532 all 0 NAP 108
37 Steeplechase / Largo 13,205,944 all 0 NAP 120
43 Highland Pinetree Apartments 12,389,735 Electric 146 590.00 42
48 Rose Hill II 11,980,750 all 0 NAP 156
39 The Plantation at Lafayette 12,750,000 all 0 NAP 102
51 Rivercrest Village Apartments 11,564,174 Electric & Gas 0 NAP 84
53 Quince Orchard II Apartments 10,979,484 Electric 0 NAP 108
57 Northwind 10,585,107 all 0 NAP 56
60 Sundance West Apartments 10,092,322 None 60 480.00 207
61 Old Farm 9,968,199 Electric 0 NAP 144
62 River Reach 9,932,082 all 0 NAP 0
65 Spinnaker Reach Apartments 9,687,496 all 0 NAP 0
66 Inverrary 441 Apartments 9,586,462 Electric 0 NAP 202
68 Woodhaven Apartments 9,530,000 Electric 0 NAP 342
72 The Broun Portfolio Consolidation 9,237,004 0 NAP 96
72a The Glen -- Electric, Water, Telephone 0 NAP 36
72b The Mews Apartments -- Electric, Water, Telephone 0 NAP 36
72c Meadowlark Apartments -- Electric, Water, Telephone 0 NAP 24
74 International Club Apartments 9,186,994 Electric 0 NAP 40
75 Village Green Apartments 9,177,124 Electric 0 NAP 96
76 Liberty Gardens 9,136,906 none 0 NAP 120
77 Park Forest 8,970,695 Electric 0 NAP 40
80 Briarcliffe Lakeside Apartments 8,776,084 Electric 0 NAP 101
82 Valley Manor 8,174,179 none 2 584 148
85 Sandstone Apartments 7,983,000 Electric 0 NAP 297
86 Innsbrook Village 7,924,513 Electric and Gas 0 NAP 129
88 Century Village Apartments 7,774,994 Electric 0 NAP 128
91 La Villita Apartments 7,765,333 None 0 NAP 139
94 Brookside West Apartments 7,579,696 Electric 8 370 0
96 Scott Mountain by the Brook 7,377,559 none 0 NAP 36
99 North Point - Springhouse Phase I 7,171,378 all 0 NAP 89
100 Kensington Club Apartments 7,131,287 Electric 0 NAP 0
109 Montgomery Street 6,900,000 all 0 NAP 120
111 Sunscape West Apartments 6,839,980 Electric & Gas 0 NAP 88
112 Orangebrook Manor Apartments 6,838,694 Electric 3 526.00 97
113 Trinity Place Apartments 6,794,491 Electric 0 NAP 96
114 Le Med Apartments 6,744,467 Electric 0 NAP 64
115 Pleasant Hills Villas 6,732,379 All Utilities 0 NAP 60
117 Legacy Apartments 6,683,917 Electric 0 NAP 18
118 Valley Breeze Apartments 6,671,562 NAV 0 NAP 0
123 Highgate Apartments 6,583,249 Electric 24 399.00 80
124 Playa Blanca Apartments 6,582,428 Electric 0 NAP 64
127 Carolina Apartments 6,547,029 all 0 NAP 0
130 Victoria Apartments 6,458,863 Electric 33 445.00 165
133 Cumberland Green 6,381,293 all 0 NAP 140
135 Rose Hill I 6,322,891 none 0 NAP 96
138 Green Grove 6,294,962 none 14 610 118
139 Constantine Village 6,276,579 varies 0 NAP 0
<CAPTION>
Control Avg Rent # of Avg Rent # of Avg Rent # of Avg Rent
No. 1 Bed ($) 2 Bed 2 Bed ($) 3 Bed 3 Bed ($) 4 Bed 4 Bed ($) Elevator
========================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
6 $671 434 $804 0 NAP 0 NAP No
11 545 422 607 43 $704 0 NAP No
13 920 145 1050 45 1200 0 NAP Yes
14 778.89 176 957.50 48 1,112.50 0 NAP No
15 818 171 840 0 NAP 0 NAP No
16 1050 112 1525 0 NAP 0 NAP Yes
18 563 192 870 40 1215 0 NAP No
20 1,172.00 63 1,428.57 0 NAP 0 NAP No
25 842 168 829 78 818 0 NAP No
26 463.40 184 605.00 0 NAP 0 NAP No
28 880 115 1000 0 NAP 0 NAP Yes
34 775 114 858 18 980 0 NAP No
37 800 120 915 0 NAP 0 NAP No
43 650.00 132 800.00 0 NAP 0 NAP No
48 744 96 816 12 965 0 NAP No
39 685 102 855 18 995 0 NAP No
51 550-565 212 635-655 32 855-880 0 NAP No
53 842 120 829 60 818 0 NAP No
57 610 92 755 37 925 0 NAP No
60 560-600 83 655-680 0 NAP 0 NAP Yes
61 533 186 630 0 NAP 0 NAP No
62 NAP 156 507 124 590 20 $655 No
65 NAP 144 507 120 590 24 655 No
66 493.00 122 583.00 0 NAP 0 NAP Yes
68 431 36 605 0 NAP 0 NAP No
72 592 120 682 36 798 0 NAP
72a 577 48 677 24 800 0 NAP No
72b 613 44 683 8 800 0 NAP No
72c 585 28 685 4 795 0 NAP No
74 609.00 162 715.00 0 NAP 0 NAP Yes
75 395.33 270 431.60 48 603.00 0 NAP No
76 737 100 916 12 981 0 NAP No
77 540 212 607 0 NAP 0 NAP No
80 665.00 91 838.13 12 1,020.00 0 NAP No
82 667 52 881 0 NAP 0 NAP No
85 434 33 570 0 NAP 0 NAP No
86 555.00 104 682.69 16 900.00 0 NAP No
88 550.00 116 650.34 14 889.29 0 NAP No
91 501.22 106 623.68 0 NAP 0 NAP No
94 NAP 140 560 40 663 0 NAP No
96 586 88 730 14 845 0 NAP No
99 505 160 637 0 NAP 0 NAP No
100 NAP 92 649.00 56 860.00 34 925.00 No
109 917 80 1114 0 NAP 0 NAP Yes
111 615.00 84 722.00 0 NAP 0 NAP No
112 694-770 47 864-882 0 NAP 0 NAP Yes
113 478 104 641 0 NAP 0 NAP No
114 716.25 64 864.38 0 NAP 0 NAP No
115 595.00 112 695-175 0 NAP 0 NAP No
117 791.00 44 1,060.00 26 1,250.00 0 NAP No
118 NAP 88 75.00 80 925.00 0 NAP No
123 508.00 96 637.50 24 860.00 0 NAP No
124 600-630 97 700-730 0 NAP 0 NAP No
127 NAP 150 640 59 840 0 NAP No
130 578.33 26 835.77 0 NAP 0 NAP No
133 574 140 687 0 NAP 0 NAP No
135 678 85 783 0 NAP 0 NAP No
138 704 32 898 0 NAP 0 NAP No
139 NAP 100 1158 0 NAP 0 NAP No
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
Control Cut-off Date # of Avg Rent # of
No. Property Name Balance ($) Utilities paid by Tenant Studios Studios ($) 1 Bed
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
143 Linden Court Apartments $ 6,190,931 Electric & Gas 0 NAP 0
144 Serra Commons Apartments 6,177,199 Electric 0 NAP 51
151 Emerald Apartments 5,984,430 Electric 0 NAP 168
153 Mount Vernon 5,982,462 Electric 32 $530 168
158 Leonardine Gardens 5,784,399 Electric 0 NAP 112
160 Park Encino Apartments 5,727,244 Electric 0 NAP 0
165 Forest Glen Apartments 5,575,834 None 0 NAP 129
166 Home - Springhouse Phase II 5,502,009 all 0 NAP 84
168 Mill Park Apartments 5,486,000 Electric & Gas 0 NAP 168
173 Beacon Mill Village 5,377,346 all 0 NAP 0
174 Club at Woodland Pond 5,355,893 Water & Sewer 0 NAP 0
175 La Maison 5,355,528 Electric 1 605 70
182 Alta Vista Gardens Apartments 5,246,084 Electric and Gas 9 540-635 12
184 Hearthside 5,120,000 Telephone 30 370 63
186 Reddmans Pier Apartments 5,019,965 all 0 NAP 75
192 Kelly House 4,907,580 none 0 NAP 0
194 Timbers of Pine Hollow Apartments 4,896,093 Electric 0 NAP 160
198 Foxhill Apartments 4,787,973 Electric 5 230 184
201 Provincial Towers Apartments 4,662,868 Landlord pays all utilities 22 450.00 55
205 Fairesta Apartments 4,587,971 Electric, Gas and Water 0 NAP 16
210 South Ridge Apartments 4,485,830 Electric 0 NAP 216
218 Sunnyview 4,356,682 Telephone 0 NAP 104
221 Villa Creek Apartments 4,196,581 Water, Sewer & Trash 28 525.00 74
223 Vernon Gardens 4,188,586 Electric 0 NAP 104
224 Kingston Apartments 4,180,514 Electric 2 390.00 98
227 Tarzana Tennis Club Apts. 4,150,453 Electric 0 NAP 20
232 Villa Serrano 4,111,869 Electric & Gas 0 NAP 27
236 Alice Nettell Tower 4,085,108 Electric 0 NAP 153
238 Hunters Crossing 4,076,596 Electric 52 356 52
240 Hansen Village Apartments 3,996,904 Electric 24 450 48
241 Oakwood Apartments 3,990,037 Half of tenants pay for electricity,
water & sewer 0 NAP 25
244 Milestone 3,956,704 Electric 0 NAP 24
247 Derby Ridge 3,888,336 Electric 0 NAP 40
249 New Hampshire Apartments 3,836,194 Electric 58 404.31 83
253 River Creek Apartments 3,788,035 Electric 0 NAP 112
254 Village Green 3,787,736 Gas and Electric 0 NAP 0
257 Versailles of Rockford 3,750,109 Electric 2 370.00 30
267 Windscape II Apartments 3,591,190 Electric 0 NAP 96
268 Courtyards Apartments 3,591,079 Electric 24 340.00 70
270 Village South 3,577,013 Electric 40 410 64
275 Covington Square 3,477,096 Electric 1 390 76
279 Terrace View Apartments 3,431,073 Electric 0 NAP 80
280 Hillsdale Manor 3,426,848 Electric 0 NAP 25
286 Forestwood On the Creek Apts. 3,389,912 all 0 NAP 82
288 Westbrook 3,385,040 Electricity, Telephone, Cable 0 NAP 0
291 Treetops Terace Condominiums 3,350,000 Telephone 0 NAP 75
292 Estero Woods Village 3,349,273 Electric 0 NAP 86
297 Buck Run/Timberline Condominiums 3,295,363 Electricity, Telephone, Cable 0 NAP 0
299 Mooresmill Village 3,291,195 Telephone 0 NAP 48
302 Sussex Downs Apartments 3,266,130 Electric 0 NAP 0
303 Foothills Villas Apartments 3,264,848 Electric 0 NAP 79
304 Lincoln Arms Apartments 3,252,041 Electric 0 NAP 64
307 Northgate Villas Apartments 3,231,171 All Utilities 0 NAP 88
308 South Brook 3,213,140 all 0 NAP 143
309 The Promenade Apartments 3,208,099 Electric 0 NAP 0
310 Swall Towers East 3,197,449 Electric 4 975-1000 12
311 Pinnacle 3,191,724 Electric 0 NAP 44
316 Swall Towers West 3,147,488 Electric 6 850-950 7
318 Grandview 3,143,821 Electricity, Telephone 0 NAP 0
322 Carriage Hills Apartments 3,113,343 Electric 0 NAP 32
328 Valencia Gardens Apartments 3,071,470 Electric & Gas 0 NAP 28
331 Woodmere Apartments 3,032,111 Electric 0 NAP 64
334 Rain Forest Apartments 2,997,655 Electric 0 NAP 64
336 Meadowrock Apartments 2,997,496 Electric 0 NAP 0
<CAPTION>
Control Avg Rent # of Avg Rent # of Avg Rent # of Avg Rent
No. 1 Bed ($) 2 Bed 2 Bed ($) 3 Bed 3 Bed ($) 4 Bed 4 Bed ($) Elevator
========================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
143 NAP 90 $662.50 90 $787.50 0 NAP No
144 $829.00 38 1,090.00 0 NAP 0 NAP Yes
151 590.00 44 681.00 0 NAP 0 NAP No
153 540 68 670 0 NAP 0 NAP No
158 706 28 830 0 NAP 0 NAP No
160 NAP 37 575.00 2 725.00 75 $775-825 Yes
165 587.58 135 712.00 0 NAP 0 NAP No
166 483 100 542 0 NAP 0 NAP No
168 330 176 414 0 NAP 0 NAP No
173 NAP 141 690 0 NAP 0 NAP No
174 NAP 168 615.00 0 NAP 0 NAP No
175 498 105 637 0 NAP 0 NAP No
182 675-750 68 795-995 0 NAP 0 NAP No
184 450 84 538 2 610 1 660 No
186 530 87 663 0 NAP 0 NAP No
192 NAP 27 975 5 1325 26 1585 No
194 410-439 68 535-610 0 NAP 0 NAP No
198 273 115 335 0 NAP 0 NAP No
201 578.00 44 725.00 0 NAP 0 NAP Yes
205 625.00 60 775.00 16 875.00 0 NAP No
210 345.00 108 445.00 0 NAP 0 NAP No
218 403 80 478 40 560 0 NAP No
221 600.41 12 710.00 0 NAP 0 NAP No
223 600 48 738 0 NAP 0 NAP No
224 530.00 56 652.00 0 NAP 0 NAP No
227 850.00 64 850.00 2 1,050.00 0 NAP No
232 595.00 85 719.00 5 885.00 0 NAP No
236 499.00 3 526.00 0 NAP 0 NAP Yes
238 416 88 503 0 NAP 0 NAP No
240 650 44 780 0 NAP 0 NAP No
241 560.00 99 650.00 0 NAP 0 NAP No
244 478 144 535 0 NAP 0 NAP No
247 410 200 460 0 NAP 0 NAP No
249 608.25 8 775.00 0 NAP 0 NAP No
253 406.00 112 494.00 0 NAP 0 NAP No
254 NAP 88 445 44 568 0 NAP No
257 519.00 92 657.82 6 825.00 0 NAP No
267 503.00 58 605.00 0 NAP 0 NAP No
268 408.00 53 538.06 10 635.00 0 NAP No
270 450 64 570 0 NAP 0 NAP No
275 415 58 582 0 NAP 0 NAP No
279 613.00 24 716.00 0 NAP 0 NAP No
280 425 155 490 0 NAP 0 NAP No
286 573 30 797 0 NAP 0 NAP No
288 NAP 80 425 40 538 0 NAP No
291 776 12 907 6 1311 0 NAP No
292 513 57 618 4 690 0 NAP No
297 NAP 96 600 0 NAP 0 NAP No
299 450 112 550 12 610 0 NAP Yes
302 NAP 72 665.00 0 NAP 0 NAP No
303 425.00 83 475.00 77 525.00 0 NAP No
304 465.00 64 562.50 0 NAP 0 NAP No
307 505.00 24 625.00 4 775.00 0 NAP No
308 420 119 495 0 NAP 0 NAP No
309 NAP 181 440.00 0 NAP 0 NAP No
310 1175-1430 12 1575-1700 0 NAP 0 NAP Yes
311 535 56 635 0 NAP 0 NAP No
316 1150-1250 17 1550-1725 0 NAP 0 NAP Yes
318 NAP 64 503 32 608 0 NAP No
322 465-485 104 535-595 32 625-695 0 NAP No
328 635.00 24 759.00 0 NAP 0 NAP No
331 635.00 40 736.00 0 NAP 0 NAP No
334 447.50 64 911.50 0 NAP 0 NAP No
336 NAP 72 640.00 0 NAP 0 NAP No
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
Control Cut-off Date # of Avg Rent # of
No. Property Name Balance ($) Utilities paid by Tenant Studios Studios ($) 1 Bed
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
339 Mountain Vista Apartments $ 2,988,063 Individually Metered 0 NAP 82
341 Timberfalls Apartments 2,955,618 Electric 0 NAP 92
346 Northfield Lodge 2,897,306 Telephone 0 NAP 40
348 Somserset Chambers 2,876,550 Telephone 8 $700 51
350 Bentley Avenue Apartments 2,836,528 Electric 0 NAP 0
351 Pheasant Glen 2,815,366 none 0 NAP 0
359 Americana Apartments 2,688,048 None 0 NAP 0
362 Littleton Lyne 2,656,383 Electric & Gas 3 447 33
363 Raintree Apartments 2,652,845 Electric 0 NAP 56
366 Covington Club Apartments 2,596,257 Electric and Gas 0 NAP 0
367 Park East Apartments 2,596,160 Included in rent 35 550.00 52
368 Shadow Trail Apartments 2,593,160 Electric, Gas, Cable & 50% of
Sewer & Trash 4 580.00 30
370 Regency Park Apartments 2,587,545 Unable to determine 0 NAP 48
373 Linda Granada 2,542,687 none 1 475 11
376 Tudor Gardens Apartments 2,538,068 Electric and Gas 4 550.00 34
383 Hillside Apartments 2,472,995 Electric 0 NAP 27
392 Ocean Villa Townhomes #2 2,396,691 Electric 0 NAP 0
395 Tuscany Village Phase I 2,392,627 Electric 0 NAP 0
396 Concord Village West 2,391,174 Telephone 0 NAP 0
405 Country Creek 2,326,172 Gas 32 325 40
407 Willow Trace Apartments 2,322,000 Electric 56 330 48
409 Fox Crossing 2,319,273 Electric 19 365 59
414 Wanamassa Gardens Apartments 2,254,135 Electric 0 NAP 50
416 River Oaks Apartments 2,246,835 Electric 0 NAP 21
417 Val Halla 2,222,177 Electric 11 405 49
419 Twin Fountains Apartments 2,216,217 Electric 0 NAP 32
421 Plantation House 2,200,000 Electric 8 380 58
423 5 Walk-Up Residential Buildings
(Formerly 70 East) 2,197,106 Unable to determine UAV UAV UAV
427 Tara Woods Apartments 2,194,361 Electric 0 NAP 1
429 Andora Apartments 2,192,153 Electric 64 365.00 24
435 North Oaks Manor Apartments 2,154,268 Electric 0 NAP 45
440 The Manors Apartments 2,142,587 Electric 12 425 54
444 Chateau Imperial 2,120,000 Electric and Gas 0 NAP 12
445 Glenoaks Apartments 2,112,568 None 0 NAP 2
452 Villa d'Venus 2,098,248 Electric 1 512 54
455 Westporte Apartments 2,096,776 Electric 0 NAP 44
458 Woodley Apartments 2,093,359 None 0 NAP 5
459 Hidden Park Apartments 2,093,340 Electric and Gas 0 NAP 27
460 Saum Apartments 2,093,340 None 81 400.00 23
462 P Street 2,092,352 Electric 9 634 6
463 Canoga Apartments 2,090,173 Unable to determine 1 735.00 27
465 Woodway Apartments 2,078,377 Electric 0 NAP 6
469 Northbrook Apartments 2,057,124 Electric 0 NAP 31
484 The Aspens 1,947,410 Electric and Gas 0 NAP 16
486 Newtonian Gardens 1,945,508 Electric 0 NAP 68
499 Saint Charles Place 1,894,978 Electric 0 NAP 12
510 825 Pine Street Apartments 1,862,441 Electric and Gas 5 1,200.00 11
511 Ocean Villa Townhomes #1 1,847,449 Electric 0 NAP 0
513 Burbank Villas Apartments 1,824,386 Electric and Gas 0 NAP 23
514 Crestwood Apartments 1,817,376 Electric 0 NAP 20
517 Sunrise Condominiums 1,794,157 None UAV UAV UAV
523 Cedars St. Paul Apts. 1,757,482 Unable to determine 1 350.00 85
527 Village Pines 1,742,849 Electric & Gas 2 377.00 7
528 395-435 East O'Keefe Street 1,741,531 Electric 68 600 2
534 Fairmount Apartments 1,697,943 Electric 9 380 48
535 Palms Apartments 1,697,751 Electric 0 NAP 18
536 Georgetown Village Apartments 1,697,603 All 1 270.00 7
540 La Jolla Court Apartments 1,652,188 All (except water and trash) 0 NAP 23
543 Kling Street Apartments 1,635,711 None 0 NAP 25
552 North Creek Townhomes 1,594,882 Electric 0 NAP 0
558 8614 Burton Way Apts. 1,548,752 Electric 0 NAP 6
565 New Hampshire Apartments 1,498,839 Electricity, Gas, Telephone 31 375 33
<CAPTION>
Control Avg Rent # of Avg Rent # of Avg Rent # of Avg Rent
No. 1 Bed ($) 2 Bed 2 Bed ($) 3 Bed 3 Bed ($) 4 Bed 4 Bed ($) Elevator
========================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
339 $386.54 114 $480.79 0 NAP 0 NAP No
341 370.00 92 440.00 0 NAP 0 NAP No
346 440 82 558 24 $740 0 NAP No
348 888 0 NAP 0 NAP 0 NAP No
350 NAP 25 1200-1800 0 NAP 0 NAP Yes
351 NAP 0 NAP 68 524 24 $583 No
359 NAP 52 750-795 12 820-925 0 NAP No
362 540 36 611 4 965 0 NAP Yes
363 435.00 112 495.00 0 NAP 0 NAP No
366 NAP 88 530.33 0 NAP 0 NAP No
367 679.79 1 Manager 0 NAP 0 NAP Yes
368 665-685 30 795-810 0 NAP 0 NAP No
370 UAV 72 UAV 0 NAP 0 NAP No
373 575 50 742 0 NAP 0 NAP No
376 700.88 20 903.50 0 NAP 0 NAP No
383 385.00 81 435.00 5 575.00 0 NAP No
392 NAP 52 699.00 0 NAP 0 NAP No
395 NAP 0 NAP 0 NAP 24 1312 No
396 NAP 119 460 0 NAP 0 NAP No
405 345 70 455 2 595 0 NAP No
407 400 88 480 0 NAP 0 NAP No
409 430 35 535 4 625 0 NAP No
414 677.50 16 775.00 0 NAP 0 NAP No
416 565.00 44 820.45 0 NAP 0 NAP No
417 510 18 640 1 690 0 NAP No
419 425.00 64 535.00 0 NAP 0 NAP No
421 536 59 542 0 NAP 0 NAP No
423 UAV UAV UAV UAV UAV UAV UAV No
427 500.00 78 551.53 27 615.00 0 NAP No
429 420.00 50 516.00 12 730.00 0 NAP No
435 475.00 36 570.00 0 NAP 0 NAP No
440 495 27 673 0 NAP 0 NAP No
444 420 54 537 0 NAP 0 NAP No
445 665-825 27 700-995 8 995-1295 0 NAP No
452 470 24 620 0 NAP 0 NAP No
455 433.00 48 512.00 0 NAP 0 NAP No
458 605.00 37 699-799 8 950.00 2 1,050.00 No
459 344.00 141 394.00 0 NAP 0 NAP No
460 547.82 9 675.00 0 NAP 1 1,800.00 No
462 847 9 1312 3 1658 0 NAP No
463 772.00 15 830.00 0 NAP 0 NAP No
465 370 6 480 30 500 30 585 No
469 420.00 61 475.00 0 NAP 0 NAP No
484 695.00 16 895.00 0 NAP 0 NAP No
486 613 24 690 0 NAP 0 NAP No
499 594 52 694 0 NAP 0 NAP No
510 2,022.00 0 NAP 0 NAP 0 NAP No
511 NAP 40 699.00 0 NAP 0 NAP No
513 747.83 13 859.62 0 NAP 0 NAP No
514 490 48 575 0 NAP 0 NAP No
517 UAV UAV UAV UAV UAV UAV UAV Yes
523 370-470 16 530-570 0 NAP 0 NAP No
527 600-1040 24 800-2100 0 NAP 0 NAP No
528 725 0 NAP 0 NAP 0 NAP No
534 460 10 582 0 NAP 0 NAP No
535 780.56 12 975.00 0 NAP 0 NAP No
536 410.00 60 475.00 7 575.00 0 NAP No
540 435.00 43 535.00 0 NAP 0 NAP No
543 660.00 11 750.00 0 NAP 0 NAP Yes
552 NAP 28 695 8 775 0 NAP No
558 1000-1100 12 1350-1575 0 NAP 0 NAP Yes
565 563 2 650 0 NAP 0 NAP Yes
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
Control Cut-off Date # of Avg Rent # of
No. Property Name Balance ($) Utilities paid by Tenant Studios Studios ($) 1 Bed
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
566 Villa Fontana Apartments $ 1,496,067 Electric 0 NAP 39
567 Briarcliff 1,493,243 Telephone 0 NAP 40
570 Calvert Apartments 1,470,407 Electric & Gas 18 $390.00 62
574 Park Rochester Apartments 1,453,917 Electric 0 NAP 15
577 Garage Loft Apartments 1,435,403 Electric, Water, Sewer & Gas 23 761.00 0
579 Forest Glen 1,421,618 Electric 0 NAP 0
587 Glynbrook Estates 1,395,039 Electric 0 NAP 0
588 Cypress Winds 1,390,839 Electric 1 400 55
593 Taylor Gardens 1,346,726 Electricity, Telephone, Cable 0 NAP 14
594 Tara Ridge Apartments 1,346,567 All 0 NAP 15
598 La Tijera Manor Apartments 1,298,280 Electric and Gas 0 NAP 26
609 University Court Apartments 1,230,004 None 68 475.00 0
613 Ocean Villa Townhomes #3 1,198,345 Electric 0 NAP 0
615 Kings Tree Apartments 1,196,993 Telephone 0 NAP 16
619 Lexington Village Apartments 1,149,068 Electric 0 NAP 0
623 Edison Apartments 1,102,686 Water 0 NAP 32
627 Williamstown Bay 1,074,983 None 0 NAP 22
628 52 Liberty Street 1,064,955 Electric and Gas 0 NAP 36
629 Highview Apartments 1,060,000 Electric 0 NAP 1
630 Kingwood 1,059,091 Electric 0 NAP 48
633 Morningside Square Apartments 1,044,005 Electric 0 NAP 44
634 Randall Court Apartments 1,012,795 Electric 0 NAP 0
637 Briarcliff Mews Apartments 997,477 Electric 0 NAP 17
638 Westgate Apartments 997,277 Electric 16 443.43 16
639 Broadmoor Apartments 997,249 Electric 12 300.00 40
640 Wolfpack Village Apartments 995,294 Electric 0 NAP 16
641 William Tell Apartments 993,266 NAV 0 NAP 40
643 19-25 Brighton Avenue 989,228 Electric 0 NAP 30
645 Haverford Apartments 970,329 NAV 3 530.00 13
647 Dahnert Park Apartments 957,509 Electric 0 NAP 24
648 Roger Post 950,688 Electric 0 NAP 0
650 Continental House 930,000 Electric 5 330 48
654 Northpointe Apartments 886,820 Electric and Gas 0 NAP 0
655 Francesca Apartments 879,261 Tenant pays all utilities 3 325.00 29
656 514 - 524 Huron Blvd. SE 862,794 None 1 385.00 31
659 Las Flores Apartments 817,376 Electric 0 NAP 24
660 Woodlawn Village 786,130 Electric 0 NAP 0
661 Monmouth Beach Village 780,000 Electric & Gas 0 NAP 16
662 325 North Howard Street 773,913 Electric 0 NAP 10
664 Washington Place 764,538 Electric 0 NAP 0
668 Villa Apartments 737,006 Electric 38 350-450 8
669 Magnolia 722,827 Telephone 0 NAP 6
671 Creamery Hills 606,232 Electric 0 NAP 10
673 Wells Court 490,000 all 0 NAP 0
675 2486 Morris Avenue 438,203 Electric 0 NAP 1
676 Branford Apartments 408,723 Electric & Gas 15 350.00 13
---------------
Total: $ 1,080,369,433
===============
<CAPTION>
Control Avg Rent # of Avg Rent # of Avg Rent # of Avg Rent
No. 1 Bed ($) 2 Bed 2 Bed ($) 3 Bed 3 Bed ($) 4 Bed 4 Bed ($) Elevator
========================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
566 $644.61 0 NAP 1 Manager 0 NAP No
567 395 44 $435 0 NAP 0 NAP No
570 450.00 0 NAP 0 NAP 0 NAP No
574 880.33 8 1,373.25 0 NAP 0 NAP No
577 NAP 0 NAP 0 NAP 0 NAP Yes
579 NAP 64 474 0 NAP 0 NAP No
587 NAP 18 610 17 $700 0 NAP No
588 472 0 NAP 0 NAP 0 NAP No
593 470 36 525 4 665 0 NAP No
594 456.53 30 515.00 25 610.00 0 NAP No
598 672.00 6 827.00 0 NAP 0 NAP No
609 NAP 2 850.00 0 NAP 0 NAP No
613 NAP 26 687.00 1 Manager 0 NAP No
615 400 56 475 8 600 0 NAP No
619 NAP 48 435.00 0 NAP 0 NAP No
623 375.00 24 440.00 0 NAP 0 NAP No
627 485 18 580 0 NAP 0 NAP No
628 611 0 NAP 0 NAP 0 NAP No
629 325 1 100 37 538 1 $750 No
630 465 64 633 0 NAP 0 NAP No
633 450.00 6 625.00 3 866.00 0 NAP No
634 NAP 44 465.00 0 NAP 0 NAP No
637 600.00 15 700.00 0 NAP 0 NAP No
638 618.12 8 690.62 0 NAP 0 NAP No
639 350.00 16 440.00 1 Manager 0 NAP No
640 372.81 33 481.36 0 NAP 1 700.00 No
641 327.50 56 435.00 0 NAP 0 NAP No
643 688 1 825 0 NAP 0 NAP No
645 810.52 1 1,175.00 0 NAP 0 NAP No
647 700.00 0 NAP 0 NAP 0 NAP No
648 NAP 44 477 0 NAP 0 NAP No
650 330 2 400 0 NAP 0 NAP No
654 NAP 24 550.00 2 675.00 0 NAP No
655 403.00 4 525.00 1 850.00 0 NAP No
656 510.00 2 700.00 0 NAP 0 NAP No
659 375-475 24 425-525 0 NAP 0 NAP No
660 NAP 36 470 0 NAP 0 NAP No
661 667 4 800 0 NAP 0 NAP No
662 565.00 6 662.50 2 732.50 0 NAP No
664 NAP 22 297 20 400 0 NAP No
668 475-525 1 700.00 0 NAP 0 NAP Yes
669 530 15 640 0 NAP 0 NAP No
671 360 10 405 4 455 0 NAP No
673 NAP 62 441 0 NAP 0 NAP No
675 545 19 619 0 NAP 0 NAP No
676 450.00 0 NAP 0 NAP 0 NAP No
</TABLE>
4
<PAGE>
ANNEX B
Structural and Collateral Term Sheet
First Union - Lehman Brothers - Bank of America
Commercial Mortgage Pass-Through Certificates
Series 1998-C2
$3.1 Billion
(Approximate)
Offered Certificates
[MAP OMITTED]
% of Mortgage Pool by Cut-off Date Balance
LEHMAN BROTHERS FIRST UNION CAPITAL MARKETS
BANCAMERICA ROBERTSON STEPHENS
Page 1/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
First Union - Lehman Brothers - Bank of America
Commercial Mortgage Pass-Through Certificates, Series 1998-C2
(FULBBA 1998-C2)
================================================================================
%
-------------------------------------------------------
Class A-1
-------------------------------------
Class A-2 Class IO
-------------------------------------
Class B
-------------------------------------
Class C
-------------------------------------
Class D
-------------------------------------
Class E
-------------------------------------
Class F
-------------------------------------
Class G
-------------------------------------
Class H
-------------------------------------
Class J
-------------------------------------
Class K
-------------------------------------
Class L
-------------------------------------
Class M
-------------------------------------
Class N
-------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
=================================================================================================================
Original Avg Principal Legal
Class Face Rating(1) Description Coupon Life(2) Window(2) Status
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 AAA Public
- -----------------------------------------------------------------------------------------------------------------
A-2 AAA Public
- -----------------------------------------------------------------------------------------------------------------
IO (3) AAA WAC IO (4) Public
- -----------------------------------------------------------------------------------------------------------------
B AA Public
- -----------------------------------------------------------------------------------------------------------------
C A Public
- -----------------------------------------------------------------------------------------------------------------
D BBB Public
- -----------------------------------------------------------------------------------------------------------------
E BBB- Public
- -----------------------------------------------------------------------------------------------------------------
F Not Offered Private, 144A
- -----------------------------------------------------------------------------------------------------------------
G Not Offered Private, 144A
- -----------------------------------------------------------------------------------------------------------------
H Not Offered Private, 144A
- -----------------------------------------------------------------------------------------------------------------
J Not Offered Private, 144A
- -----------------------------------------------------------------------------------------------------------------
K Not Offered Private, 144A
- -----------------------------------------------------------------------------------------------------------------
L Not Offered Private, 144A
- -----------------------------------------------------------------------------------------------------------------
M Not Offered Private, 144A
- -----------------------------------------------------------------------------------------------------------------
N Not Offered Private, 144A
=================================================================================================================
Total
=================================================================================================================
</TABLE>
(2) Anticipated rating.
(2) Assuming among other things, 0% CPR, no losses and that ARD loans pay off
on their Anticipated Repayment Date. Expressed in years.
(3) Represents notional amount on Class IO.
(4) Represents average life of related principal notional amounts on Class IO.
Page 2/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
Certain Offering Points
o Newly Originated Collateral. The collateral consists of 676 Mortgage Loans
with a principal balance (as of May 1, 1998) of approximately $3.475
billion. The Mortgage Loans were originated by an affiliate of Lehman
Brothers, or its approved conduit originators (50%, by balance), First
Union, or its approved conduit originators (40%, by balance), or Bank of
America (10%, by balance).
o Call Protection. 100% of the Mortgage Loans contain call protection
provisions. 99.1% of the Mortgage Loans provide for initial lockout period
followed by i) defeasance; or ii) yield maintenance; or/and iii)
percentage penalty. The weighted average lockout and defeasance period for
all loans is 9.9 years. The Mortgage Loans are generally prepayable
without penalty between zero to six months from Mortgage Loan maturity or
Anticipated Repayment Date ("ARD").
================================================================================
Type of Call Protection # of Loans % of Balance
- --------------------------------------------------------------------------------
Lockout and/or Defeasance 495 72.5
- --------------------------------------------------------------------------------
Lockout and/or Defeasance, the Yield
Maintenance and/or Declining Penalities 178 26.8
- --------------------------------------------------------------------------------
Lockout and/or Declining Penalties 3 0.7
================================================================================
o Weighted average lock-out and treasury defeasance of 9.9 years.
o No loan delinquent 30 days or more as of the Cut-off Date.
o $5.1 million average loan balance as of the Cut-off Date.
o 1.41x Weighted Average Debt Service Coverage Ratio ("DSCR") as of the
Cut-off Date.
o 71.6% Weighted Average Loan to Value ("LTV") as of the Cut-off Date.
o Property Type Diversification. 31.1% Multifamily, 27.2% Retail (73.9%
Anchored and Regional Mall and 26.1% Unanchored), 20.4% Office, 7.3%
Credit Tenant Lease ("CTL"), 6.7% Hotel, 3.8% Industrial/Warehouse, 1.9%
Health Care and 1.7% Other.
o Geographic Diversification. California (11.8%), Texas (10.3%), New York
(9.1%), Illinois (7.8%), Florida (7.1%), Georgia (6.2%), Maryland (5.9%);
all other states less than 5% each.
o Monthly Investor Reporting. Updated collateral summary information will be
part of the monthly remittance report in addition to detailed P&I payment
and delinquency information. Quarterly NOI and Occupancy information to
the extent delivered by borrowers, will be available to
Certificateholders.
o 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."))
Page 3/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
Priority and Timing of Cash Flows *
[ Intentionally omitted ]
o Assuming 0% CPR, no losses. Otherwise based on Table Assumptions.
Rating Agencies: To be determined.
Trustee: Norwest Bank Minnesota, National Association.
Master Servicer: First Union National Bank.
Special Servicer: CRIIMI MAE Services Limited Partnership.
Closing Date: On or about May 28, 1998.
Cut-off Date: May 1, 1998.
ERISA: Classes A-1, A-2 and IO are expected to be eligible for
Lehman's individual prohibited transaction exemption with
respect to ERISA.
SMMEA: Classes A-1, A-2, 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, commencing
June 18, 1998.
The Class IO: The Class IO is comprised of fourteen components, one
relating to each class of Sequential Pay Certificates.
Optional Call: 1% Clean-up Call.
Page 4/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
MORTGAGE LOANS: The collateral consists of an approximately $3.475
billion pool of 676 fixed rate mortgage loans secured by
first liens on commercial and multifamily properties in
43 different states and the District of Columbia. The
mortgage loans were originated by an affiliate of Lehman
Brothers, or its approved conduit originators, First
Union, or its approved conduit originators, or Bank of
America. As of the Cut-off Date, the Mortgage Loans have
a weighted average coupon ("WAC") of 7.257% and a
weighted average maturity ("WAM") of 152 months (based
upon the anticipated repayment date of ARD loans). 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.
DISTRIBUTIONS: Principal and interest payments will generally be made to
Certificateholders in the following order:
1) Interest to the Senior Classes: Class A-1, Class A-2
and Class IO, pro rata,
2) Principal to Class A-1 until such Class is retired,*
3) Principal to Class A-2 until such Class is retired,*
4) Interest to Class B, then Principal to Class B until
such Class is retired,
5) Interest to Class C, then Principal to Class C until
such Class is retired,
6) Interest to Class D, then Principal to Class D until
such Class is retired,
7) Interest to Class E, then Principal to Class E until
such Class is retired,
8) Interest and Principal to the Private Classes,
sequentially.
* Pro rata if Classes B through N are retired.
REALIZED LOSSES: Realized Losses from any Mortgage Loan will be allocated
in reverse sequential order (i.e. Classes N, M, L, K, J,
H, G, F, E, D, C and B, in that order, and then pro-rata
to Classes A-1 and A-2).
APPRAISAL REDUCTIONS: With respect to certain specially serviced 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 up.
MINIMUM DENOMINATIONS:
Minimum Increments
Classes Denomination Thereafter Delivery
- ------------------------------------------------------------------------------
A-1, A-2, B, C, D, and E $10,000 $1 DTC
- ------------------------------------------------------------------------------
IO $100,000 $1 DTC
Page 5/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
PREPAYMENT PREMIUMS
<TABLE>
<CAPTION>
=================================================================================================================
Prepayment
Premium 5/98 5/99 5/00 5/01 5/02 5/03 5/04 5/05 5/06 5/07 5/08
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lock-out 99.1% 98.5% 90.2% 68.6% 23.1% 15.3% 12.5% 10.0% 3.7% 3.5% 1.5%
- -----------------------------------------------------------------------------------------------------------------
Defeasance 0.2% 0.2% 6.0% 24.5% 57.3% 62.6% 63.9% 65.8% 69.9% 68.9% 70.7%
- -----------------------------------------------------------------------------------------------------------------
YM 0.3% 0.9% 3.4% 6.2% 18.6% 18.0% 19.4% 20.1% 21.3% 20.4% 18.3%
=================================================================================================================
Sub Total 99.6% 99.6% 99.6% 99.3% 99.0% 95.9% 95.9% 95.9% 94.9% 92.8% 90.5%
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
5% 0.2% 1.9% 0.1%
- -----------------------------------------------------------------------------------------------------------------
4% 0.3% 0.3% 0.4% 1.8% 0.1% 0.4%
- -----------------------------------------------------------------------------------------------------------------
3% 0.4% 0.4% 0.4% 0.8% 1.0% 1.9% 0.4% 0.8%
- -----------------------------------------------------------------------------------------------------------------
2% 0.4% 0.5% 0.5% 0.2% 1.1% 2.5% 0.7%
- -----------------------------------------------------------------------------------------------------------------
1% 0.4% 0.9% 1.1% 1.4% 1.9% 6.5%
- -----------------------------------------------------------------------------------------------------------------
Open 0.1% 0.1% 0.8% 5.0% 1.5%
=================================================================================================================
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
=================================================================================================================
</TABLE>
* % represents % of then outstanding balance as of the date shown utilizing
cut-off date balances.
OPEN PREPAYMENT PERIOD AT END OF LOAN:
==================================================
Open Period # % of Balance
at End Loans
==================================================
None 101 16.5
- --------------------------------------------------
2 to 3 months 364 51.9
- --------------------------------------------------
4 to 6 months 167 26.7
- --------------------------------------------------
12 months 16 3.9
- --------------------------------------------------
12+ months 28 3.0
==================================================
* Weighted average open period at end of loan is 5 months.
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 G, in each case, up to the product of (i) the Prepayment
Premium, (ii) the "Discount Rate Fraction" and (iii) the percentage of the
total principal distribution to Certificateholders to which such Class is
entitled. Any excess amounts will be distributed to Class IO. The Discount
Rate Fraction for Classes A through G is defined as:
(Coupon on Class - Reinvestment Yield) / (Coupon on Mortgage Loan -
Reinvestment Yield)
Page 6/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
PREPAYMENT PREMIUM ALLOCATION EXAMPLE:
The Yield Maintenance prepayment premium will generally 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 8.0%
Maturity 10 yrs (April 1, 2008)
Treasury Rate (monthly) 5.75%
Certificate Characteristics
Class A-1 Coupon 7.00%
Discount Rate Fraction Example:
Discount Rate Fraction Example:
================================================================================
Class A-1 Class IO
Certificates Certificates
================================================================================
Discount Rate Fraction Calculation (7.00% - 5.75%)/
(Class A-1 Coupon - Reinvestment Yield) / (8.00% - 5.75%)= (100% - 55.56%)=
(Gross Mortgage Rate - Reinvestment Yield) = 1.25% / 2.25%=
% of Premium allocated to Classes
(Discount Rate Fraction) 55.56% 44.44%
================================================================================
CREDIT TENANT LEASE LOANS:
Credit Tenant Lease Loans are secured by mortgages on properties which are
leased (each a "Credit Tenant Lease"), to a tenant which possesses (or
whose parent or other affiliate which guarantees the lease obligation
possesses) the rating indicated in the following table. Scheduled monthly
rent payments under the Credit Tenant 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.
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 Tenant 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;
(ii) the Tenant must make an offer to purchase the applicable property
subject to the Credit Tenant Lease for an amount not less than the
unpaid principal balance plus accrued interest on the related Credit
Tenant Lease Loan; or
(iii) the Trustee on behalf of the Certificateholders will have the
benefit of certain non-cancelable credit lease enhancement policies
obtained to cover certain casualty and/or condemnation risks.
Approximately 7.3% of the Mortgage Loans are Credit Tenant Lease Loans.
Page 7/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
<TABLE>
<CAPTION>
=======================================================================================================================
# Cut-off Date Property Lease Credit
Tenant / Guarantor Loans Balance ($) Type Type (1) Rating
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Brinker International 5 62,536,008 Restaurant B (4)
- -----------------------------------------------------------------------------------------------------------------------
Walgreen Company 12 31,221,461 Drug Store NN Aa3/A+
- -----------------------------------------------------------------------------------------------------------------------
Eckerd Corporation 4 6,814,403 Drug Store NNN A2/A(2)
- -----------------------------------------------------------------------------------------------------------------------
Eckerd Corporation 10 17,936,104 Drug Store NN A2/A(2)
- -----------------------------------------------------------------------------------------------------------------------
Q Club 4 20,858,360 Health Club B (4)
- -----------------------------------------------------------------------------------------------------------------------
Rite Aid Corp. 8 15,363,721 Drug Store NN Baa1/BBB+
- -----------------------------------------------------------------------------------------------------------------------
J. Sainsbury PLC 1 13,760,326 Grocery NN Aa3/A+
- -----------------------------------------------------------------------------------------------------------------------
CVS Corporation 8 13,255,513 Drug Store NN A3/A-
- -----------------------------------------------------------------------------------------------------------------------
Revco D.S. Inc. 7 12,065,289 Drug Store NN Baa1/A-
- -----------------------------------------------------------------------------------------------------------------------
K-Mart 1 11,283,801 Retail NNN Ba2/BB
- -----------------------------------------------------------------------------------------------------------------------
Kroger Company 2 10,761,648 Grocery NNN Baa3/BBB-
- -----------------------------------------------------------------------------------------------------------------------
Winn-Dixie Stores, Inc. 3 10,550,292 Grocery NN P1/A1(3)
- -----------------------------------------------------------------------------------------------------------------------
A & P 1 6,163,227 Grocery NNN Baa3/BBB-
- -----------------------------------------------------------------------------------------------------------------------
IHOP Corp 3 4,084,310 Restaurant NNN (4)
- -----------------------------------------------------------------------------------------------------------------------
Staples 1 3,361,991 Office Supplies NN Baa3/BB+
- -----------------------------------------------------------------------------------------------------------------------
Pep Boys 1 3,124,249 Auto Parts NNN Baa2/BBB+
- -----------------------------------------------------------------------------------------------------------------------
Safeway 1 3,022,231 Grocery NN Baa2/BBB
- -----------------------------------------------------------------------------------------------------------------------
Office Depot 1 2,194,462 Office Supplies NNN Baa2/BB+(5)
- -----------------------------------------------------------------------------------------------------------------------
State Farm 1 1,666,979 Operations Center NN Aaa/AAA(6)
- -----------------------------------------------------------------------------------------------------------------------
Sears Roebuck & Co. 1 918,191 Retail NNN A2/A-
- -----------------------------------------------------------------------------------------------------------------------
Ashtead Group PLC 1 891,617 Equipment Rental NN (4)
- -----------------------------------------------------------------------------------------------------------------------
United States Postal Service 1 828,686 Post Office NN (4)
- -----------------------------------------------------------------------------------------------------------------------
Total CTLs: 77 $252,662,868 - -
=======================================================================================================================
</TABLE>
Unless otherwise indicated, such ratings were the highest rating assigned to the
applicable tenant or guarantor, as applicable, by Moody's and Standard & Poor's,
respectively.
(1) "NNN" means triple net lease; "NN" means double net lease; "B" means
bond-type lease.
(2) Based upon the rating of Eckerd's parent, J.C. Penney Corporation,
although it has made no explicit guaranty of Eckerd's obligations.
(3) Commercial paper rating.
(4) Private rating; disclosure not available.
(5) Unsecured bank facility rating.
(6) Claims paying ability rating.
Page 8/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
Large Loans: There are 6 loans over $60mm in balance totaling $623.5mm. The
following table provides a summary of the 6 largest loans (the
"Large Loans").
Mortgage Loan Summary:
<TABLE>
<CAPTION>
================================================================================================================================
Maturity
Mortgage Property # of Cut-off Date Date/ Amort
Loan Type Properties Balance Coupon ARD Term DSCR LTV
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
IBM Somers Office 1 $178,378,814 6.83% 10/1/2013 188 mos. 1.32x 63.7%
- --------------------------------------------------------------------------------------------------------------------------------
IBM Office 1 $154,000,000 7.04% 4/10/2011 IO 36 mos then 190 mos. 1.50x 76.2%
Broadmoor
- --------------------------------------------------------------------------------------------------------------------------------
Fox Retail 1 $ 85,527,649 6.75% 11/10/2006 Interest Only 1.91x 61.5%
Valley
Mall
- --------------------------------------------------------------------------------------------------------------------------------
Hawthorn Retail 1 $ 77,863,877 6.75% 11/10/2008 Interest Only 2.00x 58.8%
Center
- --------------------------------------------------------------------------------------------------------------------------------
First Office 1 $ 64,000,000 6.75% 5/1/2013 IO 60 mos. then 360 mos. 1.40x(1) 61.0%
Union
Plaza
- --------------------------------------------------------------------------------------------------------------------------------
Oakwood Multifamily 1 $ 63,766,163 7.36% 12/1/2027 360 mos. 1.30x 79.7%
Village
================================================================================================================================
Total / - 6 $623,536,504 6.907% - - 1.54x 67.2%
Weighted
Average
================================================================================================================================
</TABLE>
(1) DSCR shown is based upon the required debt service payments during the
loan's amortization period. DSCR based upon required debt service payments
during the loan's interest only period is 1.61x.
IBM Somers:
================================================================================
Cut-Off Date Balance: $178,378,814
- --------------------------------------------------------------------------------
Coupon/Term: 6.83% / 16 year self amortizing
- --------------------------------------------------------------------------------
Sponsor: IBM (50%), Shorenstein Company (25%), Fremont
Investors (25%)
- --------------------------------------------------------------------------------
Lease: 100% triple-net leased to IBM (A+/A1) through
October 31, 2013
- --------------------------------------------------------------------------------
Property: Class A office complex designed by I.M. Pei and
built in 1987. The property includes four
four-story office buildings and one four-story
corporate services building located on a 747-acre
property.
- --------------------------------------------------------------------------------
Size: 1,078,060 net rentable square feet
- --------------------------------------------------------------------------------
Location: Somers (Westchester County), New York
- --------------------------------------------------------------------------------
Appraised Value: $280,000,000 (as of December 1, 1997) as leased
- --------------------------------------------------------------------------------
LTV: 63.7%
- --------------------------------------------------------------------------------
DSCR: 1.32x
- --------------------------------------------------------------------------------
Lockbox: All base rent will be deposited directly into a
lockbox account
- --------------------------------------------------------------------------------
Reserves: NA
================================================================================
Page 9/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
IBM Broadmoor:
================================================================================
Cut-Off Date Balance: $154,000,000
- --------------------------------------------------------------------------------
Coupon/Term: 7.04% / 13 years; 3 years interest-only then
amortization on a 190 month amortization schedule.
- --------------------------------------------------------------------------------
Sponsor: IBM (50%), Prentiss Properties (50%)
- --------------------------------------------------------------------------------
Lease: 100% triple-net leased to IBM (A+/A1) through March
2006 and 70% triple-net leased through 2011.
- --------------------------------------------------------------------------------
Property: Leasehold interest in Class A office complex built
in 1991. The Property includes seven buildings: one
single-story, three six-story, and three
eight-story. The fee simple interest is owned 100%
by IBM.
- --------------------------------------------------------------------------------
Size: 1,112,236 net rentable square feet
- --------------------------------------------------------------------------------
Location: Austin, Texas
- --------------------------------------------------------------------------------
Appraised Value: $202,000,000 (as of February 1, 1998) as leased
- --------------------------------------------------------------------------------
LTV: 76.2%
- --------------------------------------------------------------------------------
DSCR: 1.50x
- --------------------------------------------------------------------------------
Lockbox: All base rents will be deposited directly into a
lockbox account.
- --------------------------------------------------------------------------------
Reserves: If the occupancy of IBM falls below 100%, the
Borrower must establish reserves for capital
expenditures, leasing commissions, and tenant
improvements in the amount of $20 multiplied by the
number of square feet not occupied by IBM. The
reserves must always equal $20 multiplied by the
number of square feet not occupied by IBM.
================================================================================
Fox Valley Mall:
================================================================================
Cut-Off Date Balance: $85,527,649
- --------------------------------------------------------------------------------
Coupon/Term: 6.75% / 9 year interest-only
- --------------------------------------------------------------------------------
Sponsor: Urban Shopping Centers, Inc.
- --------------------------------------------------------------------------------
Anchors: Marshall Field, Sears, Carson Pirie Scott and JC
Penney
- --------------------------------------------------------------------------------
Size: Two level, 1.4 million square foot regional mall
with 566,001 square foot of In-Line Mall Space as
well as two pads leased to a health club and
theatre with 1997 mall store sales of $277 per
square foot.
- --------------------------------------------------------------------------------
Location: Aurora (outside Chicago), Illinois
- --------------------------------------------------------------------------------
Value: $138,994,118 assuming a 8.5% cap rate on
underwritten NOI
- --------------------------------------------------------------------------------
LTV: 61.5%
- --------------------------------------------------------------------------------
DSCR: 1.91x
- --------------------------------------------------------------------------------
Lockbox: Springing lockbox if the DSCR falls below 1.25x
DSCR and other standard criteria related to the ARD
and the refinancing of the loan.
- --------------------------------------------------------------------------------
Reserves: None. Borrower has covenanted that it will spend a
minimum of $7.0 million prior to April 1, 1999 on
the continued repositioning of the mall.
================================================================================
Page 10/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
Hawthorn Center:
================================================================================
Cut-Off Date Balance: $77,863,877
- --------------------------------------------------------------------------------
Coupon/Term: 6.75% / 11 year interest-only
- --------------------------------------------------------------------------------
Sponsor: Urban Shopping Centers, Inc.
- --------------------------------------------------------------------------------
Anchors: Marshall Field, Sears, Carson Pirie Scott and JC
Penney
- --------------------------------------------------------------------------------
Size: Two level, 1.2 million square foot regional mall
with 499,282 square feet of In-Line Mall Space as
well as one pad leased to a health club with 1997
mall store sales of $295 per square foot.
- --------------------------------------------------------------------------------
Location: Vernon Hills (outside Chicago), Illinois
- --------------------------------------------------------------------------------
Value: $132,421,624 assuming a 8.5% cap rate on
underwritten NOI
- --------------------------------------------------------------------------------
LTV: 58.8%
- --------------------------------------------------------------------------------
DSCR: 2.00x
- --------------------------------------------------------------------------------
Lockbox: Springing lockbox if the DSCR falls below 1.25x
DSCR and other standard criteria related to the ARD
and the refinancing of the loan.
- --------------------------------------------------------------------------------
Reserves: None
================================================================================
First Union Plaza:
================================================================================
Cut-Off Date Balance: $64,000,000
- --------------------------------------------------------------------------------
Coupon/Term: 6.75% / 15 year; 5 years interest-only then 10
years on a 30 year amortization schedule
- --------------------------------------------------------------------------------
Sponsor: Childress Klein (25%) and BBV Real Estate Services,
Inc. (75%)
- --------------------------------------------------------------------------------
Largest Tenants: First Union National Bank 19%; Sutherland, Asbill &
Brennan 17%.
- --------------------------------------------------------------------------------
Property: 28 story Class A office building built in 1987.
- --------------------------------------------------------------------------------
Size: 615,726 square feet
- --------------------------------------------------------------------------------
Location: Atlanta, Georgia
- --------------------------------------------------------------------------------
Appraised Value: $105,000,000 (as of March 28, 1998)
- --------------------------------------------------------------------------------
LTV: 61.0%
- --------------------------------------------------------------------------------
DSCR: 1.40x (1.61x based on required payments during the
interest only period)
- --------------------------------------------------------------------------------
Reserves: A $2 million TI/LC reserve was funded at closing
for a possible one time lease rollover in year
2000.
================================================================================
Page 11/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
Oakwood Village:
================================================================================
Cut-Off Date Balance: $63,766,163
- --------------------------------------------------------------------------------
Coupon/Term: 7.36% / 30 year
- --------------------------------------------------------------------------------
Sponsor: The Kushner Companies
- --------------------------------------------------------------------------------
Occupancy: 98%
- --------------------------------------------------------------------------------
Property: Apartment complex built in phases between 1973 and
1985. The improvements consist of 107 2-story brick
residential buildings plus ancillary buildings on
174.4 acre site.
- --------------------------------------------------------------------------------
Size: 1,224 units
- --------------------------------------------------------------------------------
Location: Mount Olive, NJ (approximately 30 miles NW of New
York City)
- --------------------------------------------------------------------------------
Appraised Value: $80,000,000 (as of October 6, 1997)
- --------------------------------------------------------------------------------
LTV: 79.7%
- --------------------------------------------------------------------------------
DSCR: 1.30x
- --------------------------------------------------------------------------------
Lockbox: None
- --------------------------------------------------------------------------------
Reserves: Replacement reserves in the amount of $20,400 ($200
per unit per year) will be escrowed monthly for
property upkeep.
================================================================================
AFFILIATED BORROWER CONCENTRATIONS:
================================================================================
Sponsor Name Number of Loans % by Cut-off Balance
- --------------------------------------------------------------------------------
IBM/Shorenstein Company/Fremont Investors 1 5.1
- --------------------------------------------------------------------------------
Urban Shopping Centers, Inc. 2 4.7
- --------------------------------------------------------------------------------
IBM/Prentiss Properties 1 4.4
- --------------------------------------------------------------------------------
The Kushner Companies 6 2.5
- --------------------------------------------------------------------------------
Oxford Realty Services 7 2.1
================================================================================
* No other borrower concentration equals or exceeds 2.0%.
UNDERWRITING:
The below table relates only to "conduit" loans and excludes all CTL loans as
well as the Large Loans.
================================================================================
% of Pool
w/Funded Escrow Current Balance Annual Deposit
- --------------------------------------------------------------------------------
Replacement Reserves 91.6% $3.8 mm $16.0 mm
- --------------------------------------------------------------------------------
Taxes 94.0% NA $40.8 mm
- --------------------------------------------------------------------------------
Insurance 84.6% NA $7.2 mm
- --------------------------------------------------------------------------------
TI & LC (Retail) 66.2% $3.3 mm $4.1 mm*
- --------------------------------------------------------------------------------
TI & LC (Office) 87.2% $3.5 mm $2.9 mm*
- --------------------------------------------------------------------------------
TI & LC (Industrial/W'hse) 48.9% $0.6 mm $0.6 mm*
================================================================================
* In addition, ten loans reserve periodically for lease specific events.
The below table relates to all Mortgage Loans.
- --------------------------------------------------------------------------------
Non-Consolidation Delivered for substantially for all loans with principal
Opinions balances greater than $15 million and the majority of
Credit Tenant Lease Loans.
- --------------------------------------------------------------------------------
17.2% of all loans, by balance, have hard lockboxes
Lockboxes 29.4% of all loans, by balance, have springing lockboxes
================================================================================
Page 12/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
ANTICIPATED REPAYMENT DATE LOANS:
Mortgage Loans representing 24.2% of the Initial Pool Balance provide that
if the unamortized principal amount thereof is not repaid on a date (the
"Anticipated Repayment Date") set forth in the related Mortgage Note, the
Mortgage Loan will accrue additional interest at the rate set forth
therein and the borrower will be required to apply excess monthly cash
flow generated by the Mortgaged Property (as determined in the related
Mortgage) to the repayment of principal outstanding on the Mortgage Loan.
With respect to such Mortgage Loans, no Prepayment Premiums or Yield
Maintenance Charges will be due in connection with any principal
prepayment after the Anticipated Repayment Date. For purposes of analysis,
such loans are assumed to pay off at the ARD.
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)
- -----------------------------------------------------------------------------------------------------------
<C> <S> <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 Payoff Notification Report listing of loans that have given notice of intent to payoff
</TABLE>
ADVANCING: The Master Servicer will be obligated to make advances of
scheduled principal and interest payments (excluding
balloon payments and subject to reduction for Appraisal
Reduction Amounts) and certain servicing expenses
("Advances"), to the extent that such Advances are deemed
to be recoverable out of the related loan. If the Master
Servicer fails to make a required Advance, the Trustee will
be obligated to make such advances.
CONTROLLING CLASS A Controlling Class Representative will be appointed by a
REPRESENTATIVE: 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,
be entitled to direct the Special Servicer on how to
resolve delinquent or defaulted loans.
Page 13/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
SPECIAL SERVICER The Pooling and Servicing Agreement will generally permit
FLEXIBILITY: 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) among other things, such modification, waiver or
amendment will not, subject to certain exceptions:
(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 December 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 $16.3 billion.
MASTER SERVICER: First Union. As of December 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 $16.5 billion.
Page 14/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Collateral Overview (as of the cut-off date - May 1, 1998):
GENERAL CHARACTERISTICS
===============================================
Characteristics
-----------------------------------------------
Initial Pool Balance $3,475,264,083
-----------------------------------------------
# of Loans 676
-----------------------------------------------
Gross WAC 7.257%
-----------------------------------------------
Original WAM 155 months
-----------------------------------------------
Remaining WAM 152 months
-----------------------------------------------
Avg. Loan Balance $5,140,923
-----------------------------------------------
WA DSCR* 1.41x
-----------------------------------------------
WA Cut-off Date LTV Ratio* 71.6%
-----------------------------------------------
Balloon or ARD Loans 81.1%
===============================================
*Excluding CTL loans
PROPERTY TYPES
===============================================
Property % of Initial Pool
Types Balance
-----------------------------------------------
Multifamily 31.1%
-----------------------------------------------
Retail 27.2%
-----------------------------------------------
Office 20.4%
-----------------------------------------------
CTL 7.3%
-----------------------------------------------
Hotel 6.7%
-----------------------------------------------
Industrial/Warehouse 3.8%
-----------------------------------------------
Health Care 1.9%
-----------------------------------------------
Self Storage 0.7%
-----------------------------------------------
Mobile Home Park 0.4%
-----------------------------------------------
Mixed Use 0.6%
===============================================
<TABLE>
<CAPTION>
DEAL SUMMARY BY PROPERTY TYPE
====================================================================================================================================
Aggregate Average Gross Rem. WA WA
# of Cut-off Date % of Cut-off Date WAC WAM LTV WA Occup. CA Balloon
Property Type Loans Balance ($) Pool Balance ($) (%) (mos) Ratio DSCR (x) Rate(%) % %
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Multifamily 228 1,080,369,433 31.1 4,738,462 7.24 153 76.8 1.32 95.3 5.9 27.1
- ------------------------------------------------------------------------------------------------------------------------------------
Conventional 218 1,048,050,991 30.2 4,807,573 7.23 147 76.6 1.33 95.2 5.9 27.0
- ------------------------------------------------------------------------------------------------------------------------------------
Sec. 42 10 32,318,443 0.9 3,231,844 7.78 337 81.6 1.25 96.3 N/A 0.1
- ------------------------------------------------------------------------------------------------------------------------------------
Retail 172 945,486,874 27.2 5,497,017 7.20 136 70.7 1.46 93.7 3.0 25.2
- ------------------------------------------------------------------------------------------------------------------------------------
Anchored(3) 103 698,296,242 20.1 6,779,575 7.15 138 70.1 1.49 92.9 1.7 18.3
- ------------------------------------------------------------------------------------------------------------------------------------
Unanchored 69 247,190,633 7.1 3,582,473 7.33 130 72.4 1.36 96.0 1.3 6.8
- ------------------------------------------------------------------------------------------------------------------------------------
CTL 77 252,662,868 7.3 3,281,336 7.45 240 N/A N/A 100.0 N/A 2.8
- ------------------------------------------------------------------------------------------------------------------------------------
Office 74 709,291,586 20.4 9,585,021 7.08 150 69.6 1.39 98.2 1.0 15.2
- ------------------------------------------------------------------------------------------------------------------------------------
Hotel 45 231,622,284 6.7 5,147,162 7.61 136 65.3 1.52 N/A 0.4 5.7
- ------------------------------------------------------------------------------------------------------------------------------------
Full Service 7 74,057,972 2.1 10,579,710 7.52 97 60.1 1.48 N/A 0.4 2.1
- ------------------------------------------------------------------------------------------------------------------------------------
Limited Service 38 157,564,312 4.5 4,146,429 7.65 155 67.8 1.54 N/A 0.1 3.6
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial/W'hse 44 130,726,130 3.8 2,971,048 7.36 133 67.1 1.40 98.4 1.0 2.6
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care 12 65,451,082 1.9 5,454,257 7.80 170 56.7 1.86 93.5 0.1 1.1
- ------------------------------------------------------------------------------------------------------------------------------------
Assisted Living 2 4,480,828 0.1 2,240,414 7.98 116 57.6 1.39 93.2 0.1 0.1
- ------------------------------------------------------------------------------------------------------------------------------------
Congregate Care 1 7,589,517 0.2 7,589,517 7.20 118 69.0 1.64 87.0 N/A 0.2
- ------------------------------------------------------------------------------------------------------------------------------------
Skilled Nursing 9 53,380,737 1.5 5,931,193 7.87 182 54.8 1.93 94.4 N/A 0.7
- ------------------------------------------------------------------------------------------------------------------------------------
Self Storage 11 24,019,485 0.7 2,183,590 7.53 157 67.9 1.45 91.1 0.2 0.7
- ------------------------------------------------------------------------------------------------------------------------------------
Mixed Use 8 22,086,672 0.6 2,760,834 7.63 143 67.8 1.41 94.1 0.1 0.6
- ------------------------------------------------------------------------------------------------------------------------------------
Mobile Home Park 5 13,547,668 0.4 2,709,534 7.11 125 65.5 1.55 97.2 N/A 0.3
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Avg/Min/Max
Wtd.Avg: 676 3,475,264,083 100.0 5,140,923 7.26 152 71.6(2) 1.41(2) 95.9(1) 11.8 81.2
====================================================================================================================================
</TABLE>
(1) Excluding Hotels.
(2) Excludes credit tenant lease properties but includes Section 42 mutifamily
properties.
(3) Includes Regional Mall.
Page 15/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Collateral Overview (as of the cut-off date - May 1, 1998):
<TABLE>
<CAPTION>
DEAL SUMMARY BY PROPERTY TYPE (CONTINUED)
====================================================================================================================================
Aggregate % of Average Minimum Maximum
Cut-off Date Initial Cut-off Date Cut-off Cut-off Date Gross Min
Property # of Balance Pool Balance Date Balance WAC WAC
Type Loans ($) (%) ($) Balance ($) ($) (%) (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Multifamily 228 1,080,369,433 31.1 4,738,462 408,723 63,766,163 7.24 6.76
- ------------------------------------------------------------------------------------------------------------------------------------
Conventional 218 1,048,050,991 30.2 4,807,573 408,723 63,766,163 7.23 6.76
- ------------------------------------------------------------------------------------------------------------------------------------
Sec. 42 10 32,318,443 0.9 3,231,844 490,000 9,932,082 7.78 6.96
- ------------------------------------------------------------------------------------------------------------------------------------
Retail 172 945,486,874 27.2 5,497,017 448,385 85,527,649 7.20 6.71
- ------------------------------------------------------------------------------------------------------------------------------------
Anchored 103 698,296,242 20.1 6,779,575 448,385 85,527,649 7.15 6.71
- ------------------------------------------------------------------------------------------------------------------------------------
Unanchored 69 247,190,633 7.1 3,582,473 758,403 25,328,345 7.33 6.79
- ------------------------------------------------------------------------------------------------------------------------------------
CTL 77 252,662,868 7.3 3,281,336 494,859 15,391,931 7.45 6.79
- ------------------------------------------------------------------------------------------------------------------------------------
Office 74 709,291,586 20.4 9,585,021 767,358 178,378,814 7.08 6.75
- ------------------------------------------------------------------------------------------------------------------------------------
Hotel 45 231,622,284 6.7 5,147,162 1,790,698 23,892,525 7.61 7.06
- ------------------------------------------------------------------------------------------------------------------------------------
Full Service 7 74,057,972 2.1 10,579,710 5,394,206 21,840,552 7.52 7.23
- ------------------------------------------------------------------------------------------------------------------------------------
Limited Service 38 157,564,312 4.5 4,146,429 1,790,698 23,892,525 7.65 7.06
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial/W'hse 44 130,726,130 3.8 2,971,048 747,776 12,218,750 7.36 7.00
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care 12 65,451,082 1.9 5,454,257 1,941,881 13,404,516 7.80 7.20
- ------------------------------------------------------------------------------------------------------------------------------------
Assisted Living 2 4,480,828 0.1 2,240,414 1,941,881 2,538,946 7.98 7.88
- ------------------------------------------------------------------------------------------------------------------------------------
Congregate Care 1 7,589,517 0.2 7,589,517 7,589,517 7,589,517 7.20 7.20
- ------------------------------------------------------------------------------------------------------------------------------------
Skilled Nursing 9 53,380,737 1.5 5,931,193 2,464,054 13,404,516 7.87 7.75
- ------------------------------------------------------------------------------------------------------------------------------------
Self Storage 11 24,019,485 0.7 2,183,590 992,950 3,295,516 7.53 7.13
- ------------------------------------------------------------------------------------------------------------------------------------
Mixed Use 8 22,086,672 0.6 2,760,834 958,970 4,850,614 7.63 7.23
- ------------------------------------------------------------------------------------------------------------------------------------
Mobile Home Park 5 13,547,668 0.4 2,709,534 1,345,749 4,600,000 7.11 6.80
- ------------------------------------------------------------------------------------------------------------------------------------
Total/Avg/Min/
Max/Wtd Avg.: 676 3,475,264,083 100.0 5,140,923 408,723 178,378,814 7.26 6.71
====================================================================================================================================
<CAPTION>
DEAL SUMMARY BY PROPERTY TYPE (CONTINUED)
==================================================================================================================
WA Min Max
Max WA Min Max LTV LTV LTV
Property WAC Min Max DSCR DSCR DSCR Ratio Ratio Ratio
Type (%) WAM WAM (x) (x) (x) (%) (%) (%)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Multifamily 9.11 51 360 1.32 1.18 2.55 76.8 29.8 85.0
- ------------------------------------------------------------------------------------------------------------------
Conventional 8.25 51 360 1.33 1.19 2.05 76.6 29.8 81.5
- ------------------------------------------------------------------------------------------------------------------
Sec. 42 9.11 296 360 1.25 1.18 2.55 81.6 30.2 85.0
- ------------------------------------------------------------------------------------------------------------------
Retail 9.01 57 298 1.46 1.11 2.00 70.7 30.9 83.1
- ------------------------------------------------------------------------------------------------------------------
Anchored 8.61 70 298 1.49 1.19 2.00 70.1 30.9 83.1
- ------------------------------------------------------------------------------------------------------------------
Unanchored 9.01 57 238 1.36 1.11(2) 1.79 72.4 53.7 79.9
- ------------------------------------------------------------------------------------------------------------------
CTL 9.20 115 297 N/A N/A N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------
Office 8.00 81 239 1.39 1.06(3) 1.74 69.6 50.0 79.9
- ------------------------------------------------------------------------------------------------------------------
Hotel 8.88 56 239 1.52 1.38 3.53 65.3 39.8 75.9
- ------------------------------------------------------------------------------------------------------------------
Full Service 7.90 56 119 1.48 1.40 1.64 60.1 47.1 74.4
- ------------------------------------------------------------------------------------------------------------------
Limited Service 8.88 114 239 1.54 1.38 3.53 67.8 39.8 75.9
- ------------------------------------------------------------------------------------------------------------------
Industrial/W'hse 7.71 80 240 1.40 1.24 2.23 67.1 38.7 77.7
- ------------------------------------------------------------------------------------------------------------------
Health Care 8.13 115 237 1.86 1.37 2.33 56.7 20.8 78.7
- ------------------------------------------------------------------------------------------------------------------
Assisted Living 8.13 116 116 1.39 1.37 1.42 57.6 35.3 74.7
- ------------------------------------------------------------------------------------------------------------------
Congregate Care 7.20 118 118 1.64 1.64 1.64 69.0 69.0 69.0
- ------------------------------------------------------------------------------------------------------------------
Skilled Nursing 8.00 115 237 1.93 1.37 2.33 54.8 20.8 78.7
- ------------------------------------------------------------------------------------------------------------------
Self Storage 8.00 113 238 1.45 1.30 1.82 67.9 59.5 74.3
- ------------------------------------------------------------------------------------------------------------------
Mixed Use 8.13 81 357 1.41 1.30 1.57 67.8 47.6 76.7
- ------------------------------------------------------------------------------------------------------------------
Mobile Home Park 7.32 116 177 1.55 1.14(4) 2.06 65.5 46.8 78.6
- ------------------------------------------------------------------------------------------------------------------
Total/Avg/Min/
Max/Wtd Avg.: 9.20 51 360 1.41(1) 1.06(1) 3.53(1) 71.6(1) 20.8(1) 85.0(1)
==================================================================================================================
</TABLE>
(1) Excludes Credit Tenant Lease Loan but includes Section 42 multifamily
properties.
(2) $2.064mm 75% LTV retail loan, part of an $8.8mm crossed portfolio with
1.26x DSCR.
(3) $1.284mm 15-year self-liquidating loan, at 69.4% LTV.
(4) $1.486 mm 15-year self-liquidating loan at 55.0% LTV.
Page 16/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Collateral Overview (as of the cut-off date - May 1, 1998):
LOAN SIZE DISTRIBUTION
=======================================================================
# of % of Initial
Balance Ranges ($) Loans Pool Balance
- -----------------------------------------------------------------------
408,723 - 2,000,000 204 8.3
- -----------------------------------------------------------------------
2,000,001 - 4,000,000 234 19.0
- -----------------------------------------------------------------------
4,000,001 - 6,000,000 90 12.7
- -----------------------------------------------------------------------
6,000,001 - 8,000,000 64 12.6
- -----------------------------------------------------------------------
8,000,001 - 10,000,000 24 6.3
- -----------------------------------------------------------------------
10,000,001 - 12,000,000 14 4.5
- -----------------------------------------------------------------------
12,000,001 - 14,000,000 17 6.3
- -----------------------------------------------------------------------
14,000,001 - 16,000,000 7 3.0
- -----------------------------------------------------------------------
16,000,001 - 18,000,000 6 3.0
- -----------------------------------------------------------------------
18,000,001 - 20,000,000 1 0.6
- -----------------------------------------------------------------------
20,000,001 - 22,000,000 4 2.4
- -----------------------------------------------------------------------
22,000,001 - 24,000,000 3 2.0
- -----------------------------------------------------------------------
24,000,001 - 26,000,000 2 1.4
- -----------------------------------------------------------------------
62,000,001 - 64,000,000 2 3.7
- -----------------------------------------------------------------------
76,000,001 - 78,000,000 1 2.2
- -----------------------------------------------------------------------
84,000,001 - 86,000,000 1 2.5
- -----------------------------------------------------------------------
152,000,001 - 154,000,000 1 4.4
- -----------------------------------------------------------------------
178,000,001 - 180,000,000 1 5.1
=======================================================================
Minimum Balance: $408,723
Maximum Balance: $178,378,814
Average Balance: $5,140,923
GROSS RATE DISTRIBUTION
================================================
Gross Rate % of Initial
(%) Pool Balance
------------------------------------------------
6.500 - 6.749% 0.1
------------------------------------------------
6.750 - 6.999% 20.5
------------------------------------------------
7.000 - 7.249% 34.0
------------------------------------------------
7.250 - 7.499% 24.9
------------------------------------------------
7.500 - 7.749% 11.1
------------------------------------------------
7.750 - 7.999% 5.3
------------------------------------------------
8.000 - 8.249% 2.3
------------------------------------------------
8.250 - 8.499% 0.4
------------------------------------------------
8.500 - 8.749% 0.4
------------------------------------------------
8.750 - 8.999% 0.1
------------------------------------------------
9.000 - 9.249% 0.8
================================================
Minimum Rate: 6.710%
Maximum Rate: 9.200%
WAC: 7.257%
REMAINING TERMS TO MATURITY*
=================================================
% of Initial
Months Pool Balance
-------------------------------------------------
49 - 60 1.0
-------------------------------------------------
61 - 84 3.8
-------------------------------------------------
97 - 108 2.5
-------------------------------------------------
109 - 120 51.4
-------------------------------------------------
121 - 144 3.5
-------------------------------------------------
145 - 168 5.2
-------------------------------------------------
169 - 192 16.3
-------------------------------------------------
193 - 216 0.2
-------------------------------------------------
217 - 240 9.3
-------------------------------------------------
241 - 264 1.0
-------------------------------------------------
277 - 300 2.5
-------------------------------------------------
349 - 360 3.4
=================================================
Minimum Remaining
Term to Maturity*: 51 months
Maximum Remaining
Term to Maturity*: 360 months
Weighted Average
Remaining Term to Maturity*: 152 months
REMAINING AMORTIZATION TERM
================================================
% of Initial
Months Pool Balance
------------------------------------------------
109 - 144 0.3
------------------------------------------------
157 - 180 1.3
------------------------------------------------
181 - 204 10.1
------------------------------------------------
205 - 228 0.4
------------------------------------------------
229 - 252 7.7
------------------------------------------------
253 - 276 0.9
------------------------------------------------
277 - 300 15.1
------------------------------------------------
301 - 324 3.0
------------------------------------------------
325 - 360 61.2
================================================
Minimum Remaining
Amortization Term: 115 months
Maximum Remaining
Amortization Term: 360 months
Weighted Average
Amortization Term: 316 months
*Assumes ARD Loans mature on their Anticipated Repayment Date.
Page 17/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Collateral Overview (as of the cut-off date - May 1, 1998):
DEBT SERVICE COVERAGE RATIOS*
========================================================
% of Initial
DSCR Ranges (x) Pool Balance
--------------------------------------------------------
1.06 - 1.14 0.2
--------------------------------------------------------
1.15 - 1.24 7.4
--------------------------------------------------------
1.25 - 1.29 20.6
--------------------------------------------------------
1.30 - 1.34 23.1
--------------------------------------------------------
1.35 - 1.44 21.8
--------------------------------------------------------
1.45 - 1.54 14.4
--------------------------------------------------------
1.55 - 1.64 3.1
--------------------------------------------------------
1.65 - 1.74 1.9
--------------------------------------------------------
1.75 - 1.84 0.4
--------------------------------------------------------
1.85 - 1.94 2.8
--------------------------------------------------------
1.95 - 2.04 3.0
--------------------------------------------------------
2.05 - 2.24 0.7
--------------------------------------------------------
2.25 - 2.34 0.4
--------------------------------------------------------
2.50+ 0.1
========================================================
Minimum DSCR*: 1.06x
Maximum DSCR*: 3.53x
Weighted Average DSCR*: 1.41x
LOAN TO VALUE % (LTV)*
============================================================
% of Initial
LTV Ranges Pool Balance
------------------------------------------------------------
20.01 - 30.00 0.3
------------------------------------------------------------
30.01 - 40.00 0.4
------------------------------------------------------------
40.01 - 45.00 0.0
------------------------------------------------------------
45.01 - 50.00 1.1
------------------------------------------------------------
50.01 - 55.00 0.5
------------------------------------------------------------
55.01 - 60.00 6.2
------------------------------------------------------------
60.01 - 65.00 14.8
------------------------------------------------------------
65.01 - 70.00 8.1
------------------------------------------------------------
70.01 - 75.00 31.8
------------------------------------------------------------
75.01 - 80.00 34.5
------------------------------------------------------------
80.01 - 85.00 2.1
============================================================
Minimum LTV*: 20.82%
Maximum LTV*: 84.95%
Weighted Average LTV*: 71.60%
*EXCLUDES CTL LOANS.
STATE DISTRIBUTION
==============================================
% of Initial
State Pool Balance
----------------------------------------------
California 11.8
----------------------------------------------
Texas 10.3
----------------------------------------------
New York 9.1
----------------------------------------------
Illinois 7.8
----------------------------------------------
Florida 7.1
----------------------------------------------
Georgia 6.2
----------------------------------------------
Maryland 5.9
----------------------------------------------
New Jersey 4.7
----------------------------------------------
Virginia 3.9
----------------------------------------------
North Carolina 3.4
----------------------------------------------
Arizona 2.7
----------------------------------------------
Pennsylvania 2.5
----------------------------------------------
Nevada 2.3
----------------------------------------------
Ohio 2.1
----------------------------------------------
Tennessee 1.9
----------------------------------------------
Kentucky 1.8
----------------------------------------------
Michigan 1.6
----------------------------------------------
Connecticut 1.4
----------------------------------------------
Louisiana 1.4
----------------------------------------------
Indiana 1.3
----------------------------------------------
Missouri 1.2
----------------------------------------------
Other 9.5
==============================================
No other state greater than 1.1%.
=============================================
Loan Type % of Pool
---------------------------------------------
Balloon 57.0
---------------------------------------------
Fully Amortizing 18.8
---------------------------------------------
ARD Loan 24.2
=============================================
Page 18/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
<TABLE>
<CAPTION>
ANNEX C
<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION DATE STATEMENT
TABLE OF CONTENTS
--------------------------------------------------------------------------------
STATEMENT SECTIONS PAGE(S)
Certificate Distribution Detail 2
Certificate Factor Detail 3
Reconciliation Detail 4
Other Required Information 5
Ratings Detail 6
Current Mortgage Loan and Property Stratification Tables 7 - 9
Mortgage Loan Detail 10
Principal Prepayment Detail 11
Historical Detail 12
Delinquency Loan Detail 13
Specially Serviced Loan Detail 14 - 15
Modified Loan Detail 16
Liquidated Loan Detail 17
--------------------------------------------------------------------------------
UNDERWRITER UNDERWRITER SERVICER SPECIAL SERVICER
- ----------------------------- --------------------------- --------------------------------- -----------------------------
Lehman Brothers Inc. First Union Capital Markets First Union National Bank CRIIMI MAE Services
3 World Financial Center One First Union Center First Union Capital Markets Group Limited Partnership
New York, NY 10285 301 South College Street One First Union Center 11200 Rockville Pike
Charlotte, NC 28288 301 South College Street Rockville, MD 20852
Charlotte, NC 28288
Contact: Tricia Hall Contact: Contact: Timothy S. Ryan Contact: Brian Hanson
Phone Number: (212) 526- 5850 Phone Number: Phone Number: (704) 374- 2217 Phone Number: (301) 816- 2300
- ----------------------------- --------------------------- --------------------------------- -----------------------------
This report has been compiled from information provided to Norwest by various
third parties, which may include the Servicer, Master Servicer, Special
Servicer and others.
Norwest has not independently confirmed the accuracy of information received
from these third parties and assumes no duty to do so. Norwest expressly
disclaims any responsibility for the accuracy or completeness of information
furnished by third parties.
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Copyright 1997, Norwest Bank Minnesota, N. A. Page 1 of 17
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[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
CERTIFICATE DISTRIBUTION DETAIL
===================================================================================================================================
Class\ Pass-Through Original Beginning Principal Interest Prepayment Realized Loss / Total
CUSIP Rate Balance Balance Distribution Distribution Premium Additional Trust Distribution
Component Fund Expenses
===================================================================================================================================
A-1 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
A-2 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
B 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
D 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
E 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
F 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
G 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
H 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
J 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
K 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
L 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
M 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
N 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
R-I 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
R-II 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
R-III 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00
===================================================================================================================================
Totals 0.00 0.00 0.00 0.00 0.00 0.00 0.00
===================================================================================================================================
<CAPTION>
<S> <C> <C>
=======================================
Class\ Ending Current
Balance Subordination
Component Level (1)
=======================================
A-1 0.00 0.00%
A-2 0.00 0.00%
B 0.00 0.00%
C 0.00 0.00%
D 0.00 0.00%
E 0.00 0.00%
F 0.00 0.00%
G 0.00 0.00%
H 0.00 0.00%
J 0.00 0.00%
K 0.00 0.00%
L 0.00 0.00%
M 0.00 0.00%
N 0.00 0.00%
R-I 0.00 0.00%
R-II 0.00 0.00%
R-III 0.00 0.00%
=======================================
Totals 0.00
=======================================
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
=========================================================================================================
Pass-Through Original Beginning Interest Prepayment Total Ending
Class CUSIP Rate Notional Notional Distribution Premium Distribution Notional
Amount Amount
=========================================================================================================
IO 0.000000% 0.00 0.00 0.00 0.00 0.00 0.00
=========================================================================================================
(1) Calculated by taking (A) the sum of the ending certificate balance of all
classes less (B) the sum of (i) the ending certificate balance of the
designated class and (ii) the ending certificate balance of all classes which
are not subordinate to the designated class and dividing the result by (A).
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Copyright 1997, Norwest Bank Minnesota, N. A. Page 2 of 17
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<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
CERTIFICATE FACTOR DETAIL
===========================================================================================================
Class\ Beginning Principal Interest Prepayment Realized Loss / Ending
CUSIP Balance Distribution Distribution Premium Additional Trust Balance
Component Fund Expenses
===========================================================================================================
A-1 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
A-2 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
B 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
C 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
D 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
E 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
F 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
G 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
H 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
J 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
K 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
L 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
M 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
N 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
R-I 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
R-II 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
R-III 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
===========================================================================================================
========================================================================
Beginning Interest Prepayment
Class CUSIP Notional Distribution Premium Notional
Amount Amount
========================================================================
IO 0.00000000 0.00000000 0.00000000 0.00000000
========================================================================
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Copyright 1997, Norwest Bank Minnesota, N. A. Page 3 of 17
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<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
RECONCILIATION DETAIL
ADVANCE SUMMARY MASTER SERVICING FEE SUMMARY
P & I Advances Outstanding 0.00 Current Period Accrued Master Servicing Fees 0.00
Servicing Advances Outstanding 0.00 Less Master Servicing Fees on Delinquent Payments 0.00
Less Reductions to Master Servicing Fees 0.00
Reimbursement for Interest on P&I 0.00
Advances paid from general collections Plus Master Servicing Fees for Delinquent Payments Received 0.00
Plus Adjustments for Prior Master Servicing Calculation 0.00
Reimbursement for Interest on Servicing 0.00 Total Master Servicing Fees Collected 0.00
Advances paid from general collections
CERTIFICATE INTEREST RECONCILIATION
===================================================================================================================================
Accrued Net Aggregate Distributable Distributable Additional Remaining Unpaid
Class Certificate Prepayment Certificate Certificate Interest Trust Fund Interest Distributable
Interest Interest Shortfall Interest Adjustment Expenses Distribution Certificate Interest
===================================================================================================================================
A-1 0.00 0.00 0.00 0.00 0.00 0.00 0.00
A-2 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IO 0.00 0.00 0.00 0.00 0.00 0.00 0.00
B 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C 0.00 0.00 0.00 0.00 0.00 0.00 0.00
D 0.00 0.00 0.00 0.00 0.00 0.00 0.00
E 0.00 0.00 0.00 0.00 0.00 0.00 0.00
F 0.00 0.00 0.00 0.00 0.00 0.00 0.00
G 0.00 0.00 0.00 0.00 0.00 0.00 0.00
H 0.00 0.00 0.00 0.00 0.00 0.00 0.00
J 0.00 0.00 0.00 0.00 0.00 0.00 0.00
K 0.00 0.00 0.00 0.00 0.00 0.00 0.00
L 0.00 0.00 0.00 0.00 0.00 0.00 0.00
M 0.00 0.00 0.00 0.00 0.00 0.00 0.00
N 0.00 0.00 0.00 0.00 0.00 0.00 0.00
===================================================================================================================================
Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00
===================================================================================================================================
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Copyright 1997, Norwest Bank Minnesota, N. A. Page 4 of 17
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[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER REQUIRED INFORMATION
- -----------------------------------------------------------------------------------------------------------------------------------
Appraisal Reduction Amount
Available Distribution Amount 0.00 ===================================================
Appraisal Date Appraisal
Loan Reduction Reduction
Number Amount Effected
Aggregate Number of Outstanding Loans 0 ===================================================
Aggregate Unpaid Principal Balance of Loans 0.00
Aggregate Stated Principal Balance of Loans 0.00
Aggregate Amount of Servicing Fee 0.00
Aggregate Amount of Special Servicing Fee 0.00
Aggregate Amount of Trustee Fee 0.00
Aggregate Stand-by Fee 0.00
Aggregate Trust Fund Expenses 0.00
Specially Serviced Loans not Delinquent
Number of Outstanding Loans 0 ===================================================
Aggregate Unpaid Principal Balance 0.00 Total
===================================================
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Copyright 1997, Norwest Bank Minnesota, N. A. Page 5 of 17
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<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
RATINGS DETAIL
=======================================================================
Original Ratings Current Ratings (1)
Class CUSIP DCR Fitch Moody's S & P DCR Moody's Fitch S & P
=======================================================================
A-1
A-2
IO
B
C
D
E
F
G
H
J
K
L
M
N
=======================================================================
NR - Designates that the class was not rated by the above agency at the time
of original issuance.
X - Designates that the above rating agency did not rate any classes in
this transaction at the time of original issuance.
N/A - Data not available this period.
1) For any class not rated at the time of original issuance by any particular
rating agency, no request has been made subsequent to issuance to obtain
rating information, if any, from such rating agency. The current ratings were
obtained directly from the applicable rating agency within 30 days of the
payment date listed above. The ratings may have changed since they were
obtained. Because the ratings may have changed, you may want to obtain
current ratings directly from the rating agencies.
Duff & Phelps Credit Rating Co. Fitch IBCA, Inc. Moody's Investors Service Standard & Poor's Rating Services
55 East Monroe Street One State Street Plaza 99 Church Street 26 Broadway
Chicago, Illinois 60603 New York, New York 10004 New York, New York 10007 New York, New York 10004
(312) 368-3100 (212) 908-0500 (212) 553-0300 (212) 208-8000
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Copyright 1997, Norwest Bank Minnesota, N. A. Page 6 of 17
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<CAPTION>
<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
CURRENT MORTGAGE LOAN AND PROPERTY STRATIFICATION TABLES
SCHEDULED BALANCE STATE (3)
Scheduled # of Scheduled % of WAM Weighted # of Scheduled % of WAC Weighted
Balance Loans Balance Agg. (2) WAC Avg DSCR (1) State Props. Balance Agg. (2) WAM Avg DSCR (1)
Bal. Bal.
Totals Totals
See footnotes on last page of this section.
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Copyright 1997, Norwest Bank Minnesota, N. A. Page 7 of 17
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<CAPTION>
<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
CURRENT MORTGAGE LOAN AND PROPERTY STRATIFICATION TABLES
DEBT SERVICE COVERAGE RATIO PROPERTY TYPE (3)
Debt Service # of Scheduled % of WAC Weighted Property # of Scheduled % of WAM Weighted
Coverage Ratio Loans Balance Agg. (2) WAM Avg DSCR (1) Type Loans Balance Agg. (2) WAC Avg DSCR (1)
Bal. Bal.
<S> <C> <C>
Totals Totals
NOTE RATE SEASONING
Note # of Scheduled % of WAM Weighted Seasoning # of Scheduled % of WAM Weighted
Rate Loans Balance Agg. (2) WAC Avg DSCR (1) Loans Balance Agg. (2) WAC Avg DSCR (1)
Totals Totals
See footnotes on last page of this section.
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Copyright 1997, Norwest Bank Minnesota, N. A. Page 8 of 17
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<CAPTION>
<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
CURRENT MORTGAGE LOAN AND PROPERTY STRATIFICATION TABLES
ANTICIPATED REMAINING TERM (ARD AND BALLOON LOANS) REMAINING STATED TERM (FULLY AMORTIZING LOANS)
Anticipated Remaining # of Scheduled % of WAC Weighted Remaining # of Scheduled % of WAM Weighted
Term (2) Loans Balance Agg. (2) WAM Avg DSCR (1) Stated Loans Balance Agg. (2) WAC Avg DSCR (1)
Bal. Term Bal.
<S> <C> <C>
Totals Totals
REMAINING AMORTIZATION TERM (ARD AND BALLOON LOANS) AGE OF MOST RECENT NOI
Remaining # of Scheduled % of WAM Weighted Age of Most # of Scheduled % of WAM Weighted
Amortization Loans Balance Agg. (2) WAC Avg DSCR (1) Recent NOI Loans Balance Agg. (2) WAC Avg DSCR (1)
Term Bal. Bal.
Totals Totals
(1) Debt Service Coverage Ratios are calculated as described in the
prospectus, values are updated periodically as new NOI figures become
available from borrowers on an asset level. The Trustee makes no
representations as to the accuracy of the data provided by the borrower for
this calculation. "NAP" means not applicable and relates to the ommission of
credit lease loans in the calculation of DSCR.
(2) Anticipated Remaining Term and WAM are each calculated based upon the
term from the current month to the earlier of the Anticipated Repayment Date,
if applicable, and the maturity date.
(3) Data in this table was calculated by allocating pro- rata the current
loan information to the properties based upon the Cut- off Date balance of
each property as disclosed in the offering document. Note: There are no
Hyper- Amortization Loans included in the Mortgage Pool.
Page 9 of 17 Copyright 1997, Norwest Bank Minnesota, N. A.
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Copyright 1997, Norwest Bank Minnesota, N. A. Page 9 of 17
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<CAPTION>
<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
MORTGAGE LOAN DETAIL
Anticipated Neg. Beginning
Loan Property Interest Principal Gross Repayment Maturity Amort Scheduled
Number ODCR Type (1) City State Payment Payment Coupon Date Date (Y/N) Balance
TOTALS
<CAPTION>
Ending Paid Appraisal Appraisal Res. Mod.
Loan Scheduled Thru Reduction Reduction Strat. Code
Number Balance Date Date Amount (2) (3)
<S> <C> <C> <C> <C> <C> <C>
TOTALS
</TABLE>
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<CAPTION>
(1) Property Type Code (2) Resolution Strategy Code (3) Modification Code
<S> <C> <C>
MF - Multi-Family 1 - Modification 1 - Maturity Date Extension
RT - Retail 2 - Foreclosure 2 - Amortization Change
HC - Health Care 3 - Bankruptcy 3 - Principal Write-Off
IN - Industrial 4 - Extension 4 - Combination
WH - Warehouse 5 - Note Sale
MH - Mobile Home Park 6 - DPO
OF - Office 7 - REO
MU - Mixed Use 8 - Resolved
LO - Lodging 9 - Pending Return
SS - Self Storage to Master Servicer
OT - Other 10 - Deed In Lieu Of
Foreclosure
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Copyright 1997, Norwest Bank Minnesota, N. A. Page 10 of 17
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<CAPTION>
<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL PREPAYMENT DETAIL
===================================================================================================================================
Loan Number Offering Document Principal Prepayment Amount Prepayment Penalties
-------------------------------------------------------------------------------------------
Cross-Reference Payoff Amount Curtailment Amount Prepayment Premium Yield Maintenance Charge
===================================================================================================================================
===================================================================================================================================
Totals
===================================================================================================================================
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Copyright 1997, Norwest Bank Minnesota, N. A. Page 11 of 17
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<CAPTION>
<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
HISTORICAL DETAIL
===================================================================================================================================
Delinquencies
Distribution 30-59 Days 60-89 Days 90 Days or More Foreclosure REO Modifications
Date # Balance # Amount # Balance # Balance # Balance # Balance
===================================================================================================================================
<CAPTION>
=========================================================================
Prepayments Rate and Maturities
Distribution Curtailments Payoff Next Weighted Avg.
Date # Balance # Amount Coupon Remit WAM
=========================================================================
<S> <C> <C> <C> <C>
Note: Foreclosure and REO Totals are excluded from the delinquencies aging
categories.
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Copyright 1997, Norwest Bank Minnesota, N. A. Page 12 of 17
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<CAPTION>
<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
DELINQUENCY LOAN DETAIL
==============================================================================================================================
Offering Status Reso-
Document # of Paid Current Outstanding of lution Servicing Fore- Current Outstanding
Loan Cross- Months Through P & I P & I Mortgage Strategy Transfer closure Servicing Servicing
Number Reference Delinq. Date Advances Advances** Loan (1) Code (2) Date Date Advances Advances
==============================================================================================================================
<CAPTION>
=======================
<S> <C>
Bankruptcy REO
Date Date
=======================
===================================================================================================================================
Totals
===================================================================================================================================
(1) Status of Mortgage Loan (2) Resolution Strategy Code
A - Payment Not Received 2 - Two Months Delinquent 1 - Modification 7 - REO
But Still in Grace Period 3 - Three Or More Months Delinquent 2 - Foreclosure 8 - Resolved
B - Late Payment But Less 4 - Assumed Scheduled Payment 3 - Bankruptcy 9 - Pending Return
Than 1 Month Delinquent (Performing Matured Balloon) 4 - Extension to Master Servicer
0 - Current 7 - Foreclosure 5 - Note Sale 10 - Deed In Lieu Of
1 - One Month Delinquent 9 - REO 6 - DPO Foreclosure
** Outstanding P & I Advances include the current period advance
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Copyright 1997, Norwest Bank Minnesota, N. A. Page 13 of 17
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<CAPTION>
<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
SPECIALLY SERVICED LOAN DETAIL - PART 1
===================================================================================================================================
Offering Reso- Net Remaining
Distri- Document Servicing lution Sched- Oper- Matu- Amorti-
bution Loan Cross- Transfer Strategy uled Property Interest Actual ating NOI Note rity zation
Date Number Reference Date Code (1) Balance Type (2) State Rate Balance Income Date DSCR Date Date Term
===================================================================================================================================
===================================================================================================================================
(1) Resolution Strategy Code (2) Property Type Code
1 - Modification 7 - REO MF - Multi-Family OF - Office
2 - Foreclosure 8 - Resolved RT - Retail MU - Mixed Use
3 - Bankruptcy 9 - Pending Return HC - Health Care LO - Lodging
4 - Extension to Master Servicer IN - Industrial SS - Self Storage
5 - Note Sale 10 - Deed In Lieu Of WH - Warehouse OT - Other
6 - DPO Foreclosure MH - Mobile Home Park
- -----------------------------------------------------------------------------------------------------------------------------------
Copyright 1997, Norwest Bank Minnesota, N. A. Page 14 of 17
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<CAPTION>
<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
SPECIALLY SERVICED LOAN DETAIL - PART 2
===================================================================================================================================
Offering Resolution Site
Distribution Loan Document Strategy Inspection Appraisal Appraisal Other REO
Date Number Cross- Reference Code (1) Date Phase 1 Date Date Value Property Revenue Comment
===================================================================================================================================
===================================================================================================================================
(1) Resolution Strategy Code
1 - Modification 7 - REO
2 - Foreclosure 8 - Resolved
3 - Bankruptcy 9 - Pending Return
4 - Extension to Master Servicer
5 - Note Sale 10 - Deed In Lieu Of
6 - DPO Foreclosure
- -----------------------------------------------------------------------------------------------------------------------------------
Copyright 1997, Norwest Bank Minnesota, N. A. Page 15 of 17
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
MODIFIED LOAN DETAIL
===================================================================================================================================
Offering Pre-
Loan Document Modification
Number Cross-Reference Balance Modification Date Modification Description
===================================================================================================================================
===================================================================================================================================
Total
===================================================================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
Copyright 1997, Norwest Bank Minnesota, N. A. Page 16 of 17
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
[NORWEST BANKS LOGO FIRST UNION - LEHMAN BROTHERS - BANK OF AMERICA For Additional Information, please contact
COMMERCIAL MORTGAGE TRUST Leslie Gaskill
NORWEST BANK MINNESOTA, N. A. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES (212) 509-1630
CORPORATE TRUST SERVICES SERIES 1998-C2 Reports Available on the World Wide Web
3 NEW YORK PLAZA, 15TH FLOOR @ www. securitieslink. net/cmbs
NEW YORK, NY 10004 PAYMENT DATE: 6/18/98
RECORD DATE: 5/29/98
- -----------------------------------------------------------------------------------------------------------------------------------
LIQUIDATED LOAN DETAIL
===================================================================================================================================
Final Gross Net
Recovery Offering Proceeds Proceeds
Determ- Document as a % of Aggregate Net as a % of Repurchased
Loan ination Cross- Appraisal Appraisal Gross Actual Liquidation Liquidation Actual Realized by Seller
Number Date Reference Date Value Proceeds Balance Expenses * Proceeds Balance Loss (Y/ N)
===================================================================================================================================
===================================================================================================================================
Current Total
===================================================================================================================================
Cumulative Total
===================================================================================================================================
- -----------------------------------------------------------------------------------------------------------------------------------
Copyright 1997, Norwest Bank Minnesota, N. A. Page 17 of 17
* Aggregate liquidation expenses also include outstanding P & I advances and unpaid fees (servicing, trustee, etc.).
</TABLE>
<PAGE>
Annex D
First Union-Lehman Brothers-Bank of America
Commercial Mortgage Trust 1998-C2
DELINQUENT LOAN STATUS REPORT
as of ____________________
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
S4 S55 S61 S57 S58 S62 or S63 P8 P7 P37 P39
- ------------------------------------------------------------------------------------------------------------------------------------
(a) (b) (c)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Short Name Paid Scheduled Total P&I Total
Prospectus (When Property Sq Ft or Thru Loan Advances Expenses
ID Appropriate) Type City State Units Date Balance To Date To Date
- ------------------------------------------------------------------------------------------------------------------------------------
90 + DAYS DELINQUENT
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
60 DAYS DELINQUENT
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
30 DAYS DELINQUENT
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Current & at Special Servicer
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
FCL - Foreclosure
- ------------------------------------------------------------------------------------------------------------------------------------
LTM - Latest 12 Months either Last Annual or Trailing 12 months
- ------------------------------------------------------------------------------------------------------------------------------------
* Workout Strategy should match the CSSA Loan file using abreviated words in
place of a code number such as (FCL - In Foreclosure, MOD - Modification,
DPO - Discount Payoff, NS - Note Sale, BK - Bankrupcy, PP - Payment Plan,
TBD - To Be Determined etc...)
- ------------------------------------------------------------------------------------------------------------------------------------
It is possible to combine the status codes if the loan is going in more
than one direction. (i.e. FCL/Mod, BK/Mod, BK/FCL/DPO)
- ------------------------------------------------------------------------------------------------------------------------------------
** App - Appraisal, BPO - Broker opinion, Int. - Internal Value
- ------------------------------------------------------------------------------------------------------------------------------------
*** How to determine the cap rate is agreed upon by Underwriter and services - to be provided by a third party
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
S4 P38 P25 P10 P11 P58 P54 P55 P74
- ------------------------------------------------------------------------------------------------------------------------------------
(d) (e)=a+b+c+d (f)=P38/81
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Other Value
Advances Current Current *** using NOI
Prospectus (Taxes & Total Monthly Interest Maturity LTM NOI Cap Rate & Cap Valuation
ID Escrow) Exposure P&I Rate Date Date LTM NOI LTM DSCR Assigned Rate Date
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
S4 S55 S61 S57 S58 P75 P35 P77 P79 P42 P82
- -----------------------------------------------------------------------------------------------------------------------------------
(g)=(.92*f)-e (h)=(g/e)
- -----------------------------------------------------------------------------------------------------------------------------------
Appraisal Total
Short Name BPO or Loss using Estimated Appraisal Expected
Prospectus (When Property City State Internal 90% Appr. Recovery Reduction Transfer Resolution FCL Start FCL Sale
ID Appropriate) Type Value** or BPO (f) % Realized Date Date Date Date
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
90 + DAYS DELINQUENT
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
60 DAYS DELINQUENT
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
30 DAYS DELINQUENT
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Current & at Special Servicer
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
FCL - Foreclosure
- ------------------------------------------------------------------------------------------------------------------------------------
LTM - Latest 12 Months either Last Annual or Trailing 12 m
- ------------------------------------------------------------------------------------------------------------------------------------
* Workout Strategy should match the CSSA Loan file using abr etc...
- ------------------------------------------------------------------------------------------------------------------------------------
It is possible to combine the status codes if the loan is goi
- ------------------------------------------------------------------------------------------------------------------------------------
** App - Appraisal, BPO - Broker opinion, Int. - Internal Va
- ------------------------------------------------------------------------------------------------------------------------------------
*** How to determine the cap rate is agreed upon by Underwriter and services - to be provided by a third party
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- -----------------------------------------------------------------------
S4 S55 S61 S57 S58 P76
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
Short Name
Prospectus (When Property City State Workout
ID Appropriate) Type Strategy Comments
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
90 + DAYS DELINQUENT
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
60 DAYS DELINQUENT
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
30 DAYS DELINQUENT
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
Current & at Special Servicer
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
FCL - Foreclosure
- -----------------------------------------------------------------------
LTM - Latest 12 Months either Last Annual or Trailing 12 months
- -----------------------------------------------------------------------
* Workout Strategy should match the CSSA Loan file using abr etc...
- -----------------------------------------------------------------------
It is possible to combine the status codes if the loan is goi
- -----------------------------------------------------------------------
** App - Appraisal, BPO - Broker opinion, Int. - Internal Va
- -----------------------------------------------------------------------
*** How to determine the cap rate is agreed upon by Underwriter and
services - to be provided by a third party
- -----------------------------------------------------------------------
Annex E
First Union-Lehman Brothers-Bank of America
Commercial Mortgage Trust 1998-C2
HISTORICAL LOAN MODIFICATION REPORT
as of _________________
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
S4 S57 S58 P49 P48 P7* P7* P50* P50* P25*
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Balance Balance at
When the
Mod / Sent to Effective # Mths
Prospectus Extention Effect Speical Date of Old for Rate New Old
ID City State Flag Date Servicer Rehabilitation Rate Change Rate P&I
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
THIS REPORT IS HISTORICAL
- ---------------------------------------------------------------------------------------------------------------------------
Information is as of modification. Each line it should not change in the future. Only new modifications should be added.
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
===========================================================================================================================
Total For All:
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Total For Loans in Current Month:
- ---------------------------------------------------------------------------------------------------------------------------
# of Loans $ Balance
- ---------------------------------------------------------------------------------------------------------------------------
Modifications:
- ---------------------------------------------------------------------------------------------------------------------------
Maturity Date Extentions:
- ---------------------------------------------------------------------------------------------------------------------------
Total:
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
* The information in these columns is from a particular point in time and should not change on this report once assigned.
- ---------------------------------------------------------------------------------------------------------------------------
(1) Actual principal loss taken by bonds
- ---------------------------------------------------------------------------------------------------------------------------
(2) Expected future loss due to a rate reduction. This is just an estimate calculated at the time of the modification.
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
S4 P25* P11* P11* P47
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
(2) Est.
Future
Total # Interest
Mths (1) Loss to
for Realized Trust $
Prospectus New Old New Change Loss to (Rate
ID P&I Maturity Maturity of Mod Trust $ Reduction) COMMENT
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
</TABLE>
Annex F
First Union-Lehman Brothers-Bank of America
Commercial Mortgage Trust 1998-C2
HISTORICAL LOSS ESTIMATE REPORT (REO-SOLD or DISCOUNTED PAYOFF)
as of ______________________
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
S4 S55 S61 S57 S58 P45/P7 P75 P45 P7 P37 P39+P38
- -----------------------------------------------------------------------------------------------------------------------------------
(c)=b/a (a) (b) (d) (e) (f) (g)
- -----------------------------------------------------------------------------------------------------------------------------------
Latest
Appraisal
Short Name % or Effect Net Amt
Prospectus (When Property Received Brokers Date of Sales Received Scheduled Total P&I Total
ID Appropriate) Type City State From Sale Opinion Sale Price from Sale Balance Advanced Expenses
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
THIS REPORT IS HISTORICAL
- -----------------------------------------------------------------------------------------------------------------------------------
All information is from the liquidation date and does not need to be updated.
- -----------------------------------------------------------------------------------------------------------------------------------
===================================================================================================================================
Total all Loans:
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Current Month Only:
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
S4
- ---------------------------------------------------------------------------------------------------------
(h) (i)=d-(f+g+h) (k)=i-e (m) (n)=k+m (o)=n/e
- ---------------------------------------------------------------------------------------------------------
Date Minor
Loss Adj Total Loss Loss % of
Prospectus Servicing Actual Losses Passed Minor Adj Passed with Scheduled
ID Fees Expense Net Proceeds Passed thru thru to Trust thru Adjustment Balance
=========================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------
THIS REPORT
- ---------------------------------------------------------------------------------------------------------
All information is from the liquidation date and does not need to be updated.
- ---------------------------------------------------------------------------------------------------------
=========================================================================================================
Total all Loans:
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Current Month Only:
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Annex G
First Union-Lehman Brothers-Bank of America
Commercial Mortgage Trust 1998-C2
REO STATUS REPORT
as of ____________________
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
S4 S55 S61 S57 S58 S62 or P8 P7 P37 P39 P38
- -------------------------------------------------------------------------------------------------------------------------
S63 (a) (b) (c) (d)
- -------------------------------------------------------------------------------------------------------------------------
Prospectus Short Name Prope City State Sq Ft Paid Scheduled Total Total Other
ID (When rty or Thru Loan P&I Expenses Advances
Appropriate) Type Units Date Balance Advances To Date (Taxes &
To Date Escrow)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
S4 P25 P11 P58 P54 P74 P75
- ---------------------------------------------------------------------------------------------------------------------
(e)=a+b+c+d (f)
- ---------------------------------------------------------------------------------------------------------------------
Prospectus Total Current Maturity LTM LTM Cap Valuation Value Appraisal
ID Exposure Monthly Date NOI NOI / Rate Date using BPO or
P&I Date DSC Assign NOI & Internal
*** Cap Rate Value**
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
S4 P35
- -----------------------------------------------------------------------------------------------------------------
(g)=(.92*f)-(h)=(g/e)
- -----------------------------------------------------------------------------------------------------------------
Prospectus Loss Estimated Total Transfer REO Pending Pending
ID using Recovery Appraisal Date Aquisition Closing Offers Comments
92% % Reduction Date Date
Appr. or Realized
BPO (f)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
(1) Use the following codes; App. - Appraisal, BPO - Brokers Opinion, Int - Internal Value
- -----------------------------------------------------------------------------------------------------------------
*** How to determine the cap rate is agreed upon by Underwriter and servicers - to be provided by a third party.
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Annex H
First Union-Lehman Brothers-Bank of America
Commercial Mortgage Trust 1998-C2
SERVICER WATCH LIST
as of ____________________
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
S4 S55 S61 S57 S58 P7 P8 P11 P54
- ------------------------------------------------------------------------------------------------------------------------------------
Prospectus Short Name Property City State Scheduled Paid Maturity LTM* Comment / Reason on Watch List
ID (When Type Loan Thru Date DSCR
Appropriate) Balance Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
List all loans on watch list and reason sorted in decending balance order.
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Total: $
- ------------------------------------------------------------------------------------------------------------------------------------
*LTM - Last 12 months either trailing or last annual
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Annex I
First Union-Lehman Brothers-Bank of America
Commercial Mortgage Trust 1998-C2
OPERATING STATEMENT ANALYSIS REPORT
as of ____________________
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
PROPERTY OVERVIEW
--------------
Prospectus Number
--------------
-------------
Scheduled Balance/Paid to Date
---------------------------------------------------------------------------------------------------
Property Name
---------------------------------------------------------------------------------------------------
Property Type
---------------------------------------------------------------------------------------------------
Property Address, City, State
---------------------------------------------------------------------------------------------------
Net Rentable Square Feet
--------------------------
Year Built/Year Renovated
-----------------------------------------------------------------
Year of Operations Underwriting 1994 1995 1996 Trailing
-----------------------------------------------------------------
Occupancy Rate *
-----------------------------------------------------------------
Average Rental Rate
-----------------------------------------------------------------
* Occupancy rates are year end or the ending date of the financial statement for the period.
INCOME: No. of Mos.
--------------
Number of Mos. Prior Year Current Yr.
------------------------------------------------------------------------------------------
Period Ended Underwriting 1994 1995 1996 97 Trailing** 1996-Base 1996-1995
--------------
Statement Classification Base Line Normalized Normalized Normalized as of / /97 Variance Variance
------------------------------------------------------------------------------------------
Rental Income (Category 1)
------------------------------------------------------------------------------------------
Rental Income (Category 2)
------------------------------------------------------------------------------------------
Rental Income (Category 3)
------------------------------------------------------------------------------------------
Pass Through/Escalations
------------------------------------------------------------------------------------------
Other Income
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Gross Income $0.00 $0.00 $0.00 $0.00 $0.00 % %
------------------------------------------------------------------------------------------
Normalized - Full year Financial statements that have been reviewed by the underwriter or
Servicer
** Servicer will not be expected to "Normalize" these YTD numbers.
OPERATING EXPENSES:
------------------------------------------------------------------------------------------
Real Estate Taxes
------------------------------------------------------------------------------------------
Property Insurance
------------------------------------------------------------------------------------------
Utilities
------------------------------------------------------------------------------------------
General & Administration
------------------------------------------------------------------------------------------
Repairs and Maintenance
------------------------------------------------------------------------------------------
Management Fees
------------------------------------------------------------------------------------------
Payroll & Benefits Expense
------------------------------------------------------------------------------------------
Advertising & Marketing
------------------------------------------------------------------------------------------
Professional Fees
------------------------------------------------------------------------------------------
Other Expenses
------------------------------------------------------------------------------------------
Ground Rent
------------------------------------------------------------------------------------------
Total Operating Expenses $0.00 $0.00 $0.00 $0.00 $0.00 % %
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Operating Expense Ratio
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Net Operating Income $0.00 $0.00 $0.00 $0.00 $0.00
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Leasing Commissions
------------------------------------------------------------------------------------------
Tenant Improvements
------------------------------------------------------------------------------------------
Replacement Reserve
------------------------------------------------------------------------------------------
Total Capital Items $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
N.O.I. After Capital Items $0.00 $0.00 $0.00 $0.00 $0.00 % %
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Debt Service (per Servicer) $0.00 $0.00 $0.00 $0.00 $0.00
------------------------------------------------------------------------------------------
Cash Flow after debt service $0.00 $0.00 $0.00 $0.00 $0.00
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
(1) DSCR: (NOI/Debt Service)
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
DSCR: (after reserves\Cap exp.)
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Source of Financial Data:
------------------------------------------------------------------------------------------
(ie. operating statements, financial statements, tax return, other)
Notes and Assumptions:
===========================================================================================================================
</TABLE>
The years shown above will roll always showing a three year history. 1996 is the
current year financials; 1995 is the prior year financials.
This report may vary depending on the property type and because of the way
information may vary in each borrowers statement.
Rental Income needs to be broken down, differently whenever possible differently
for each property type as follows: Retail: 1) Base Rent 2) Percentage rents on
cashflow Hotel: 1) Room Revenue 2) Food/Beverage Nursing Home: 1) Private 2)
Medicaid 3) Medicare
Income: Comment
Expense: Comment
Capital Items: Comment
(1) Used in the Comparative Financial Status Report
<PAGE>
Annex J
First Union-Lehman Brothers-Bank of America
Commercial Mortgage Trust 1998-C2
Form of NOI ADJUSTMENT WORKSHEET for "year"
as of ____________________
<TABLE>
<S> <C> <C> <C> <C> <C>
PROPERTY OVERVIEW
-------------
Prospectus Number
-------------
Schedule Balance/Paid to Date
--------------------------------------------------------------------------------------------
Property Name
--------------------------------------------------------------------------------------------
Property Type
--------------------------------------------------------------------------------------------
Property Address, City, State
--------------------------------------------------------------------------------------------
Net Rentable Square Feet
-------------
Year Built/Year Renovated
-----------------------------------------
Year of Operations Borrower Adjustment Normalized
-----------------------------------------
Occupancy Rate *
-----------------------------------------
Average Rental Rate
-----------------------------------------
* Occupancy rates are year end or the ending date of the financial statement for the period.
INCOME:
Number of Mos. Annualized "Year"
-------------------------------------------------------------------
Period Ended Borrower Adjustment Normalized
Statement Classification Actual
-------------------------------------------------------------------
Rental Income (Category 1)
-------------------------------------------------------------------
Rental Income (Category 2)
-------------------------------------------------------------------
Rental Income (Category 3)
-------------------------------------------------------------------
Pass Throughs/Escalations
-------------------------------------------------------------------
Other Income
-------------------------------------------------------------------
-------------------------------------------------------------------
Effective Gross Income $0.00 $0.00 $0.00
-------------------------------------------------------------------
Normalized - Full year Financial statements that have been reviewed by the underwriter or
Servicer.
OPERATING EXPENSES:
-------------------------------------------------------------------
Real Estate Taxes
-------------------------------------------------------------------
Property Insurance
-------------------------------------------------------------------
Utilities
-------------------------------------------------------------------
General & Administration
-------------------------------------------------------------------
Repairs and Maintenance
-------------------------------------------------------------------
Management Fees
-------------------------------------------------------------------
Payroll & Benefits Expense
-------------------------------------------------------------------
Advertising & Marketing
-------------------------------------------------------------------
Professional Fees
-------------------------------------------------------------------
Other Expenses
-------------------------------------------------------------------
Ground Rent
-------------------------------------------------------------------
Total Operating Expenses $0.00 $0.00 $0.00
-------------------------------------------------------------------
-------------------------------------------------------------------
Operating Expense Ratio
-------------------------------------------------------------------
-------------------------------------------------------------------
Net Operating Income $0.00 $0.00 $0.00
-------------------------------------------------------------------
-------------------------------------------------------------------
Leasing Commissions
-------------------------------------------------------------------
Tenant Improvements
-------------------------------------------------------------------
Replacement Reserve
-------------------------------------------------------------------
Total Capital Items $0.00 $0.00 $0.00
-------------------------------------------------------------------
-------------------------------------------------------------------
N.O.I. After Capital Items $0.00 $0.00 $0.00
-------------------------------------------------------------------
-------------------------------------------------------------------
Debt Service (per Servicer) $0.00 $0.00 $0.00
-------------------------------------------------------------------
Cash Flow after debt service $0.00 $0.00 $0.00
-------------------------------------------------------------------
-------------------------------------------------------------------
(1)DSCR: (NOI/Debt Service)
-------------------------------------------------------------------
-------------------------------------------------------------------
DSCR: (after reserves\Cap exp.)
-------------------------------------------------------------------
-------------------------------------------------------------------
Source of Financial Data:
-------------------------------------------------------------------
(ie. operating statements, financial statements, tax return, other)
</TABLE>
Notes and Assumptions:
================================================================================
This report should be completed by the Servicer for any "Normalization" of the
Borrower's numbers.
The "Normalized" column is used in the Operating Statement Analysis Report.
This report may vary depending on the property type and because of the way
information may vary in each borrowers statement.
Income: Comments
Expense: Comments
Capital Items: Comments
(1) Used in the Comparative Financial Status Report
<PAGE>
Annex K
First Union-Lehman Brothers-Bank of America
Commercial Mortgage Trust 1998-C2
COMPARATIVE FINANCIAL STATUS REPORT
as of ____________________
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
S4 S57 S58 P7 P8 S72 S69 S70 S65 S66
- ---------------------------------------------------------------------------------------------------------------
Original Underwriting
- ---------------------------------------------------------------------------------------------------------------
Information
- ---------------------------------------------------------------------------------------------------------------
Basis Year
- ---------------------------------------------------------------------------------------------------------------
Last
Property Scheduled Paid Annual Financial
Prospectus Inspect Loan Thru Debt Info as of % Total $ (1)
ID City State Date Balance Date Service Date Occ Revenue NOI DSCR
- ---------------------------------------------------------------------------------------------------------------
yy/mm yy/mm
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
List all properties currently in deal with or with out information largest to smallest loan
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
Total: $ $ WA $ $ WA
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
===============================================================================================================
Received
- ---------------------------------------------------------------------------------------------------------------
Financial Information: Loans Balance
- ---------------------------------------------------------------------------------------------------------------
# % $ %
- ---------------------------------------------------------------------------------------------------------------
Current Full Year:
- ---------------------------------------------------------------------------------------------------------------
Current Full Yr. received with DSC < 1:
- ---------------------------------------------------------------------------------------------------------------
Prior Full Year:
- ---------------------------------------------------------------------------------------------------------------
Prior Full Yr. received with DSC < 1:
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
(1) DSCR should match to Operating Statement and is normally calculated using NOI/Debt Service.
- ---------------------------------------------------------------------------------------------------------------
(2) Net change chould compare the latest year to the underwriting year
===============================================================================================================
<CAPTION>
- ------------------------------------------------------------------------------------------------
S4 P65 P64 P59 P61 P63 P58 P57 P52 P54 P56
- ------------------------------------------------------------------------------------------------
2nd Preceding Annual Operating Preceding Annual Operating
- ------------------------------------------------------------------------------------------------
Information Information
- ------------------------------------------------------------------------------------------------
as of ___________ Normalized as of ___________ Normalized
- ------------------------------------------------------------------------------------------------
Financial Financial
Prospectus Info as of % Total $ (1) Info as of % Total $ (1)
ID Date Occ Revenue NOI DSCR Date Occ Revenue NOI DSCR
- ------------------------------------------------------------------------------------------------
yy/mm yy/mm
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
Total: WA $ $ WA WA $ $ WA
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
================================================================================================
Required
- ------------------------------------------------------------------------------------------------
Loans Balance
- ------------------------------------------------------------------------------------------------
# % $ %
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
</TABLE>
- -------------------------------------------------------------------------------
S4 P72 P73 P66 P68 P70 (2)
- -------------------------------------------------------------------------------
Trailing Financial or YTD Net Change
- -------------------------------------------------------------------------------
Information
- -------------------------------------------------------------------------------
Month Reported "Actual" Preceding & Basis
- -------------------------------------------------------------------------------
%
Prospectus FS Start FS End Total $ (%) % Total (1)
ID Date Date Revenue NOI DSCR Occ Rev DSC
- -------------------------------------------------------------------------------
yy/mm yy/mm
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Total: WA $ $ WA WA $ WA
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<PAGE>
PROSPECTUS
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
(ISSUABLE IN SERIES)
FIRST UNION COMMERCIAL MORTGAGE SECURITIES, INC.
DEPOSITOR
--------------
This Prospectus describes the commercial mortgage pass-through certificates
(the "Offered Certificates") offered hereby and by the supplements hereto (each,
a "Prospectus Supplement"), which will be offered from time to time in series.
The Offered Certificates of each series, together with any other commercial
mortgage pass-through certificates of such series not offered hereby, are
collectively referred to herein as the "Certificates".
Each series of Certificates will consist of one or more classes of
Certificates, and such class or classes (including classes of Offered
Certificates) may (i) provide for the accrual of interest thereon based on a
fixed, variable or adjustable rate; (ii) be senior or subordinate to one or more
other classes of Certificates in entitlement to certain distributions on the
Certificates; (iii) be entitled to distributions of principal, with
disproportionately small, nominal or no distributions of interest; (iv) be
entitled to distributions of interest, with disproportionately small, nominal or
no distributions of principal; (v) provide for distributions of principal and/
or interest that commence only following the occurrence of certain events, such
as the retirement of one or more other classes of Certificates of such series;
(vi) provide for distributions of principal to be made, from time to time or for
designated periods, at a rate that is faster (and, in some cases, substantially
faster) or slower (and, in some cases, substantially slower) than the rate at
which payments or other collections of principal are received on the Mortgage
Assets in the related Trust Fund; or (vii) provide for distributions of
principal to be made, subject to available funds, based on a specified principal
payment schedule or other methodology. See "Description of the Certificates".
-------------------
PROSPECTIVE INVESTORS SHOULD REVIEW THE INFORMATION APPEARING
ON PAGE 19 UNDER THE CAPTION "RISK FACTORS" HEREIN AND UNDER SUCH CAPTION IN THE
RELATED PROSPECTUS SUPPLEMENT BEFORE PURCHASING ANY OFFERED CERTIFICATE.
-----------------
THE CERTIFICATES WILL REPRESENT INTERESTS IN THE RELATED TRUST FUND ONLY AND
WILL NOT REPRESENT INTERESTS IN OR OBLIGATIONS OF FIRST UNION COMMERCIAL
MORTGAGE SECURITIES, INC. OR ANY AFFILIATE THEREOF, INCLUDING WITHOUT
LIMITATION, FIRST UNION NATIONAL BANK. A CERTIFICATE IS NOT A DEPOSIT
AND NEITHER THE CERTIFICATES NOR THE UNDERLYING MORTGAGE ASSETS
ARE INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY.
-------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
-------------------
PRIOR TO ISSUANCE THERE WILL HAVE BEEN NO MARKET FOR THE CERTIFICATES OF ANY
SERIES AND THERE CAN BE NO ASSURANCE THAT A SECONDARY MARKET FOR ANY OFFERED
CERTIFICATES WILL DEVELOP OR THAT, IF IT DOES DEVELOP, IT WILL CONTINUE. SEE
"RISK FACTORS". THIS PROSPECTUS MAY NOT BE USED TO CONSUMMATE SALES OF THE
OFFERED CERTIFICATES OF ANY SERIES UNLESS ACCOMPANIED BY THE PROSPECTUS
SUPPLEMENT FOR SUCH SERIES.
The Offered Certificates of any series may be offered through one or more
different methods such as offerings through underwriters, including First Union
Capital Markets Corp., a division of Wheat First Securities, Inc., an affiliate
of the Depositor, acting as principals for their own account or as agents, as
more fully described under "Method of Distribution" herein and in the related
Prospectus Supplement.
(COVER CONTINUED ON NEXT PAGE)
MAY 11, 1998
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(COVER CONTINUED)
In the aggregate, the Certificates of each series of Certificates will
represent the entire beneficial ownership interest in a trust fund (with respect
to any series, the "Trust Fund") consisting primarily of a segregated pool of
one or more of various types of multifamily or commercial mortgage loans (the
"Mortgage Loans"), mortgage-backed securities ("CMBS") that evidence interests
in, or that are secured by pledges of, one or more of various types of
multifamily or commercial mortgage loans or a combination of Mortgage Loans and
CMBS (collectively, "Mortgage Assets"). Mortgage Loans may be secured by
interests in the following property types residential properties consisting of
five or more rental or cooperatively-owned dwelling units, shopping centers,
retail stores, office buildings, hotels or motels, warehouse facilities,
hospitals or other health-care related facilities, mini-warehouse or
self-storage facilities, mixed use, mobile home parks or other types of income
producing properties. See "Description of the Trust Funds." Mortgage Loans (or
mortgage loans underlying a CMBS) may be secured by first or junior, recourse or
non-recourse liens and may be delinquent as of the date Certificates of a series
are issued, if so specified in the related Prospectus Supplement. If so
specified in the related Prospectus Supplement, the Trust Fund for a series of
Certificate may include amounts on deposit in a separate account (the
"Pre-Funding Account") which may be used by the Trust Fund to acquire additional
assets as more fully described herein and in the related Prospectus Supplement.
If so specified in the related Prospectus Supplement, the Trust Fund for a
series of Certificates may include letters of credit, insurance policies,
guarantees, reserve funds or other types of credit support, or any combination
thereof (with respect to any series, collectively, "Credit Support"), and
currency or interest rate exchange agreements and other financial assets, or any
combination thereof (with respect to any series, collectively, "Cash Flow
Agreements"). See "Risk Factors--Effects of Pre-Funding and Acquisition of
Additional Mortgage Assets," "Description of the Trust Funds", "Description of
the Certificates" and "Description of Credit Support".
Distributions in respect of the Certificates will be made on a monthly,
quarterly or other periodic basis as specified in the related Prospectus
Supplement. Such distributions will be made only from the assets of the related
Trust Fund.
This Prospectus and related Prospectus Supplements may be used by the
Depositor, First Union Capital Markets Corp., an affiliate of the Depositor, and
any other affiliate of the Depositor when required under the federal securities
laws in connection with offers and sales of Offered Certificates in furtherance
of market-making activities in Offered Certificates. First Union Capital Markets
Corp. or any such other affiliate may act as principal or agent in such
transactions. Such sales will be made at prices related to prevailing market
prices at the time of sale or otherwise.
No Certificates of any series will represent an obligation of or interest in
the Depositor or any of its affiliates, except to the limited extent described
herein and in the related Prospectus Supplement. Neither the Certificates of any
series nor the assets in the related Trust Fund will be guaranteed or insured by
any governmental agency or instrumentality or by any other person, unless
otherwise provided in the related Prospectus Supplement. The assets in each
Trust Fund will be held in trust for the benefit of the holders of the related
series of Certificates (the "Certificateholders") pursuant to a Pooling
Agreement, as more fully described herein.
The yield on each class of Certificates of a series will be affected by,
among other things, the rate of payment of principal (including prepayments,
repurchases and defaults) on the Mortgage Assets in the related Trust Fund and
the timing of receipt of such paymentsas described herein and in the related
Prospectus Supplement. See "Yield and Maturity Considerations". A Trust Fund may
be subjectto early termination under the circumstances described herein and in
the related Prospectus Supplement. See "Description of the Certificates".
If so provided in the related Prospectus Supplement, one or more elections
may be made to treat the related Trust Fund or a designated portion thereof as a
"real estate mortgage investment conduit" (a "REMIC") for federal income tax
purposes. See "Material Federal Income Tax Consequences" herein.
Until 90 days after the date of each Prospectus Supplement, all dealers
effecting transactions in the Offered Certificates covered by such Prospectus
Supplement, whether or not participating in the distribution thereof, may be
required to deliver such Prospectus Supplement and this Prospectus. This is in
addition to the obligation of dealers to deliver a Prospectus and Prospectus
Supplement when acting as underwriters and with respect to their unsold
allotments or subscriptions.
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PROSPECTUS SUPPLEMENT
As more particularly described herein, each Prospectus Supplement will,
among other things, set forth, as and to the extent appropriate: (i) a
description of the class or classes of Offered Certificates of the related
series, including the aggregate principal amount of each such class (the
"Certificate Balance"), the rate at which interest will accrue from time to
time, if at all, with respect to each such class (the "Pass-Through Rate") or
the method of determining such rate; (ii) information with respect to any other
classes of Certificates of the same series not offered thereby; (iii) the
respective dates on which distributions are to be made to Certificateholders;
(iv) information as to the assets constituting the related Trust Fund, including
the general characteristics of the assets included therein, including the
Mortgage Assets and any Credit Support and Cash Flow Agreements (with respect to
the Certificates of any series, the "Trust Assets"); (v) the circumstances, if
any, under which the related Trust Fund may be subject to early termination;
(vi) additional information with respect to the method of distribution of such
Offered Certificates; (vii) whether one or more REMIC elections will be made,
and the designation of the "regular interests" and "residual interests" in each
REMIC to be created; (viii) the initial percentage ownership interest in the
related Trust Fund to be evidenced by each class of Certificates of such series;
(ix) information concerning the trustee (as to any series, the "Trustee") of the
related Trust Fund; (x) information concerning the master servicer (as to any
series, the "Master Servicer") and any special servicer (as to any series, the
"Special Servicer") engaged to administer the related Mortgage Assets; (xi)
information as to the nature and extent of any subordination in entitlement to
distributions of any class of Certificates of such series; and (xii) whether
such Offered Certificates will be initially issued in definitive or book-entry
form.
AVAILABLE INFORMATION
The Depositor has filed with the Securities and Exchange Commission (the
"Commission") a Registration Statement (of which this Prospectus forms a part)
under the Securities Act of 1933, as amended (the "Securities Act"), with
respect to the Offered Certificates. This Prospectus and the Prospectus
Supplement relating to the Offered Certificates of each series contain summaries
of the material terms of the documents referred to herein and therein, but do
not contain all of the information set forth in the Registration Statement
pursuant to the rules and regulations of the Commission. For further
information, reference is made to such Registration Statement and the exhibits
thereto. Such Registration Statement and exhibits can be inspected and copied at
prescribed rates at the public reference facilities maintained by the Commission
at its Public Reference Section, 450 Fifth Street, N.W., Washington, D.C. 20549,
and at its Regional Offices located as follows: Chicago Regional Office,
Northwest Atrium Center, 500 West Madison Street, 14th Floor, Chicago, Illinois
60661; and New York Regional Office, Seven World Trade Center, Suite 1300, New
York, New York 10048. The Commission also maintains a Web site that contains
reports, proxy and information statements, and other information regarding
registrants that file electronically with the Commission. The site may be
accessed at http:/www.sec.gov.
No person has been authorized to give any information or to make any
representation not contained in this Prospectus and any related Prospectus
Supplement and, if given or made, such information or representation must not be
relied upon. This Prospectus and any related Prospectus Supplement do not
constitute an offer to sell or a solicitation of an offer to buy any securities
other than the Offered Certificates, or an offer of the Offered Certificates to
any person in any state or other jurisdiction in which such offer would be
unlawful. The delivery of this Prospectus at any time does not imply that
information herein is correct as of any time subsequent to its date; however, if
any material change occurs while this Prospectus is required by law to be
delivered, this Prospectus will be amended or supplemented accordingly.
The related Master Servicer or Trustee will be required to mail to holders
of the Offered Certificates of each series periodic unaudited reports concerning
the related Trust Fund. If beneficial interests in a class of Offered
Certificates are being held and transferred in book-entry format through the
facilities of
3
<PAGE>
The Depository Trust Company ("DTC") as described herein, then, unless otherwise
provided in the related Prospectus Supplement, such reports will be sent on
behalf of the related Trust Fund to a nominee of DTC as the registered holder of
the Offered Certificates. The means by which notices and other communications
are conveyed by DTC to its participating organizations, and directly or
indirectly through such participating organizations to the beneficial owners of
the applicable Offered Certificates, will be governed by arrangements among
them, subject to any statutory or regulatory requirements as may be in effect
from time to time. See "Description of the Certificates--Reports to
Certificateholders" and "--Book-Entry Registration and Definitive Certificates"
and "Description of the Pooling Agreements-- Evidence as to Compliance". The
Depositor will file or cause to be filed with the Commission such periodic
reports with respect to each Trust Fund as are required under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and the rules and
regulations of the Commission thereunder.
To the extent described in the related Prospectus Supplement, some or all of
the Mortgage Loans may be secured by an assignment of the lessors' (i.e., the
related Mortgagors') rights in one or more bond-type or credit-type net leases
(each, a "Lease") of the related Mortgaged Property. Unless otherwise specified
in the related Prospectus Supplement, no series of Certificates will represent
interests in or obligations of any lessee (each, a "Lessee") under a Lease. If
indicated, however, in the Prospectus Supplement for a given series, a
significant or the sole source of payments on the Mortgage Loans in such series,
and, therefore, of distributions on such Certificates, will be rental payments
due from the Lessees under the Leases. Under such circumstances, prospective
investors in the related series of Certificates may wish to consider publicly
available information, if any, concerning the Lessees. Reference should be made
to the related Prospectus Supplement for information concerning the Lessees and
whether any such Lessees are subject to the periodic reporting requirements of
the Exchange Act.
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
There are incorporated herein by reference all documents and reports filed
or caused to be filed by the Depositor with respect to a Trust Fund pursuant to
Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, prior to the termination
of an offering of Offered Certificates evidencing interests therein. The
Depositor, upon request, will provide or cause to be provided without charge to
each person to whom this Prospectus is delivered in connection with the offering
of one or more classes of Offered Certificates, a copy of any or all documents
or reports incorporated herein by reference, in each case to the extent such
documents or reports relate to one or more of such Offered Certificates, other
than the exhibits to such documents (unless such exhibits are specifically
incorporated by reference in such documents). Requests to the Depositor should
be directed in writing to its principal executive office at One First Union
Center, Charlotte, North Carolina 28228-0013, Attention: Secretary, or by
telephone at 704-374-6161. The Depositor has determined that its financial
statements will not be material to the offering of any Offered Certificates.
4
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TABLE OF CONTENTS
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PROSPECTUS SUPPLEMENT...................................................................................... 3
AVAILABLE INFORMATION...................................................................................... 3
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE.......................................................... 4
SUMMARY OF PROSPECTUS...................................................................................... 9
RISK FACTORS............................................................................................... 19
Limited Liquidity for Offered Certificates............................................................... 19
Limited Assets to Support Payment on Certificates........................................................ 19
Prepayments on Mortgage Loans; Effects on Average Life of Certificates; Effects on Yields on
Certificates........................................................................................... 20
Optional Early Termination............................................................................... 21
Limited Nature of Ratings on Certificates................................................................ 21
Effects of Pre-Funding and Acquisition of Additional Mortgage Assets..................................... 22
Risks to Lenders Associated with Certain Income Producing Loans and Mortgaged Properties................. 22
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY MULTIFAMILY PROPERTIES............................... 23
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY RETAIL PROPERTIES.................................... 23
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY OFFICE BUILDINGS..................................... 24
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY HOSPITALITY PROPERTIES............................... 24
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY RESIDENTIAL HEALTHCARE FACILITIES.................... 25
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY WAREHOUSE AND SELF STORAGE FACILITIES................ 25
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY INDUSTRIAL & MIXED-USE FACILITIES.................... 25
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY HEALTH-CARE RELATED PROPERTIES....................... 26
Management Risks......................................................................................... 27
Risks Associated with Certain Mortgage Loans and Related Leases.......................................... 28
Balloon Payments on Mortgage Loans; Heightened Risk of Borrower Default.................................. 28
Junior Mortgage Loans.................................................................................... 29
Credit Support Limitations--May Not Cover All Risks or Full Payment on Certificates...................... 29
Enforceability........................................................................................... 30
Leases and Rents Serving as Security for Mortgage Loans Pose Special Risks............................... 30
Delinquent Mortgage Loans................................................................................ 30
Environmental Liability May Affect Lien on Mortgaged Property and Expose Lender to Costs................. 30
Credit Support Limitations--May Not Cover All Risks or Full Payment on Certificates...................... 31
ERISA Considerations--Covered Investors May Experience Liability......................................... 31
Certain Federal Tax Considerations Regarding REMIC Residual Certificates................................. 32
Book-Entry Registration of Certificates Affects Ownership of Certificates and Receipt of Payments........ 32
Delinquent and Non-Performing Mortgage Loans............................................................. 32
DESCRIPTION OF THE TRUST FUNDS............................................................................. 33
General.................................................................................................. 33
Mortgage Loans-Leases.................................................................................... 33
GENERAL.............................................................................................. 33
LEASES............................................................................................... 34
DEFAULT AND LOSS CONSIDERATIONS WITH RESPECT TO THE MORTGAGE LOANS................................... 35
PAYMENT PROVISIONS OF THE MORTGAGE LOANS............................................................. 36
MORTGAGE LOAN INFORMATION IN PROSPECTUS SUPPLEMENTS.................................................. 37
CMBS..................................................................................................... 37
Certificate Accounts..................................................................................... 38
Credit Support........................................................................................... 38
Cash Flow Agreements..................................................................................... 39
Pre-Funding.............................................................................................. 39
YIELD AND MATURITY CONSIDERATIONS.......................................................................... 40
General.................................................................................................. 40
Pass-Through Rate........................................................................................ 40
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Payment Delays........................................................................................... 40
Certain Shortfalls in Collections of Interest............................................................ 40
Yield and Prepayment Considerations...................................................................... 41
Weighted Average Life and Maturity....................................................................... 42
Controlled Amortization Classes and Companion Classes.................................................... 43
Other Factors Affecting Yield, Weighted Average Life and Maturity........................................ 43
BALLOON PAYMENTS; EXTENSIONS OF MATURITY............................................................. 43
NEGATIVE AMORTIZATION................................................................................ 44
FORECLOSURES AND PAYMENT PLANS....................................................................... 44
LOSSES AND SHORTFALLS ON THE MORTGAGE ASSETS......................................................... 44
ADDITIONAL CERTIFICATE AMORTIZATION.................................................................. 45
THE DEPOSITOR.............................................................................................. 45
USE OF PROCEEDS............................................................................................ 45
DESCRIPTION OF THE CERTIFICATES............................................................................ 46
General.................................................................................................. 46
Distributions............................................................................................ 46
Distributions of Interest on the Certificates............................................................ 46
Distributions of Certificate Principal................................................................... 48
Distributions on the Certificates in Respect of Prepayment Premiums or in Respect of Equity
Participations......................................................................................... 49
Allocation of Losses and Shortfalls...................................................................... 49
Advances in Respect of Delinquencies..................................................................... 49
Reports to Certificateholders............................................................................ 50
Voting Rights............................................................................................ 52
Termination.............................................................................................. 52
Book-Entry Registration and Definitive Certificates...................................................... 53
DESCRIPTION OF THE POOLING AGREEMENTS...................................................................... 55
General.................................................................................................. 55
Assignment of Mortgage Assets; Repurchases............................................................... 55
Representations and Warranties; Repurchases.............................................................. 56
Certificate Account...................................................................................... 57
GENERAL.............................................................................................. 57
DEPOSITS............................................................................................. 57
WITHDRAWALS.......................................................................................... 58
Collection and Other Servicing Procedures................................................................ 60
Modifications, Waivers and Amendments of Mortgage Loans.................................................. 60
Sub-Servicers............................................................................................ 60
Special Servicers........................................................................................ 60
Realization Upon Defaulted Mortgage Loans................................................................ 61
Hazard Insurance Policies................................................................................ 62
Due-on-Sale and Due-on-Encumbrance Provisions............................................................ 63
Servicing Compensation and Payment of Expenses........................................................... 63
Evidence as to Compliance................................................................................ 64
Certain Matters Regarding the Master Servicer and the Depositor.......................................... 64
Events of Default........................................................................................ 65
Rights Upon Event of Default............................................................................. 66
Amendment................................................................................................ 66
List of Certificateholders............................................................................... 67
The Trustee.............................................................................................. 67
Duties of the Trustee.................................................................................... 67
Certain Matters Regarding the Trustee.................................................................... 67
Resignation and Removal of the Trustee................................................................... 68
DESCRIPTION OF CREDIT SUPPORT.............................................................................. 69
General.................................................................................................. 69
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Subordinate Certificates................................................................................. 69
Cross-Support Provisions................................................................................. 69
Insurance or Guarantees with Respect to Mortgage Loans................................................... 70
Letter of Credit......................................................................................... 70
Certificate Insurance and Surety Bonds................................................................... 70
Reserve Funds............................................................................................ 70
Credit Support with Respect to CMBS...................................................................... 71
CERTAIN LEGAL ASPECTS OF MORTGAGE LOANS AND LEASES......................................................... 71
General.................................................................................................. 72
Types of Mortgage Instruments............................................................................ 72
Leases and Rents......................................................................................... 72
Personalty............................................................................................... 72
Cooperative Loans........................................................................................ 73
Junior Mortgages; Rights of Senior Lenders............................................................... 74
Foreclosure.............................................................................................. 75
GENERAL.............................................................................................. 75
FORECLOSURE PROCEDURES VARY FROM STATE TO STATE...................................................... 75
JUDICIAL FORECLOSURE................................................................................. 75
NON-JUDICIAL FORECLOSURE/POWER OF SALE............................................................... 75
EQUITABLE LIMITATIONS ON ENFORCEABILITY OF CERTAIN PROVISIONS........................................ 76
PUBLIC SALE.......................................................................................... 76
RIGHTS OF REDEMPTION................................................................................. 77
ANTI-DEFICIENCY LEGISLATION.......................................................................... 77
LEASEHOLD RISKS...................................................................................... 78
REGULATED HEALTHCARE FACILITIES...................................................................... 78
CROSS-COLLATERALIZATION.............................................................................. 78
COOPERATIVE LOANS.................................................................................... 78
Bankruptcy Laws.......................................................................................... 79
Environmental Considerations............................................................................. 80
GENERAL.............................................................................................. 80
SUPERLIEN LAWS....................................................................................... 80
CERCLA............................................................................................... 80
CERTAIN OTHER STATE LAWS............................................................................. 81
ADDITIONAL CONSIDERATIONS............................................................................ 81
Due-on-Sale and Due-on-Encumbrance....................................................................... 82
Subordinate Financing.................................................................................... 82
Default Interest and Limitations on Prepayments.......................................................... 82
Applicability of Usury Laws.............................................................................. 83
Soldiers' and Sailors' Civil Relief Act of 1940.......................................................... 83
Americans with Disabilities Act.......................................................................... 83
Forfeitures in Drug and RICO Proceedings................................................................. 84
MATERIAL FEDERAL INCOME TAX CONSEQUENCES................................................................... 85
General.................................................................................................. 85
REMICs................................................................................................... 86
CLASSIFICATION OF REMICS............................................................................. 86
CHARACTERIZATION OF INVESTMENTS IN REMIC CERTIFICATES................................................ 86
TIERED REMIC STRUCTURES.............................................................................. 87
Taxation of Owners of REMIC Regular Certificates......................................................... 87
GENERAL.............................................................................................. 87
ORIGINAL ISSUE DISCOUNT.............................................................................. 87
MARKET DISCOUNT...................................................................................... 89
PREMIUM.............................................................................................. 90
REALIZED LOSSES...................................................................................... 91
Taxation of Owners of REMIC Residual Certificates........................................................ 91
GENERAL.............................................................................................. 91
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TAXABLE INCOME OF THE REMIC.......................................................................... 92
BASIS RULES, NET LOSSES AND DISTRIBUTIONS............................................................ 92
EXCESS INCLUSIONS.................................................................................... 94
NONECONOMIC REMIC RESIDUAL CERTIFICATES.............................................................. 95
MARK-TO-MARKET RULES................................................................................. 96
POSSIBLE PASS-THROUGH OF MISCELLANEOUS ITEMIZED DEDUCTIONS........................................... 96
SALES OF REMIC CERTIFICATES.......................................................................... 97
PROHIBITED TRANSACTIONS TAX AND OTHER TAXES.......................................................... 98
TAX AND RESTRICTIONS ON TRANSFERS OF REMIC RESIDUAL CERTIFICATES TO CERTAIN ORGANIZATIONS............ 99
TERMINATION.......................................................................................... 100
REPORTING AND OTHER ADMINISTRATIVE MATTERS........................................................... 100
BACKUP WITHHOLDING WITH RESPECT TO REMIC CERTIFICATES................................................ 101
FOREIGN INVESTORS IN REMIC CERTIFICATES.............................................................. 101
Grantor Trust Funds...................................................................................... 102
CLASSIFICATION OF GRANTOR TRUST FUNDS................................................................ 102
Characterization of Investments in Grantor Trust Certificates............................................ 103
GRANTOR TRUST FRACTIONAL INTEREST CERTIFICATES....................................................... 103
GRANTOR TRUST STRIP CERTIFICATES..................................................................... 103
Taxation of Owners of Grantor Trust Fractional Interest Certificates..................................... 103
GENERAL.............................................................................................. 103
IF STRIPPED BOND RULES APPLY......................................................................... 104
IF STRIPPED BOND RULES DO NOT APPLY.................................................................. 106
MARKET DISCOUNT...................................................................................... 107
PREMIUM.............................................................................................. 108
TAXATION OF OWNERS OF GRANTOR TRUST STRIP CERTIFICATES............................................... 109
POSSIBLE APPLICATION OF CONTINGENT PAYMENT RULES..................................................... 110
SALES OF GRANTOR TRUST CERTIFICATES.................................................................. 110
GRANTOR TRUST REPORTING.............................................................................. 111
BACKUP WITHHOLDING................................................................................... 111
FOREIGN INVESTOR..................................................................................... 111
STATE AND OTHER TAX CONSEQUENCES........................................................................... 111
ERISA CONSIDERATIONS....................................................................................... 112
General.................................................................................................. 112
PLAN ASSET REGULATIONS............................................................................... 112
Prohibited Transaction Exemptions........................................................................ 112
LEGAL INVESTMENT........................................................................................... 116
METHOD OF DISTRIBUTION..................................................................................... 117
LEGAL MATTERS.............................................................................................. 118
FINANCIAL INFORMATION...................................................................................... 118
RATING..................................................................................................... 118
INDEX OF PRINCIPAL DEFINITIONS............................................................................. 120
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SUMMARY OF PROSPECTUS
THE FOLLOWING SUMMARY OF CERTAIN PERTINENT INFORMATION IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO THE MORE DETAILED INFORMATION APPEARING ELSEWHERE IN
THIS PROSPECTUS AND BY REFERENCE TO THE INFORMATION WITH RESPECT TO EACH SERIES
OF CERTIFICATES CONTAINED IN THE PROSPECTUS SUPPLEMENT TO BE PREPARED AND
DELIVERED IN CONNECTION WITHTHE OFFERING OF OFFERED CERTIFICATES OF SUCH SERIES.
AN INDEX OF PRINCIPAL DEFINITIONS IS INCLUDED AT THE END OFTHIS PROSPECTUS.
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Title of Certificates........ Commercial Mortgage Pass-Through Certificates, issuable in
series (the "Certificates").
Depositor.................... First Union Commercial Mortgage Securities, Inc., a
wholly-owned subsidiary of First Union National Bank. See
"The Depositor".
Issuer....................... The Trust Fund established under a Pooling and Servicing
Agreement, as described below in this Summary of
Prospectus under "Description of Certificates".
Master Servicer.............. The master servicer (the "Master Servicer"), if any, for a
series of Certificates will be named in the related
Prospectus Supplement and may be an affiliate of the
Depositor. See "Description of the Pooling
Agreements--Collection and Other Servicing Procedures".
Special Servicer............. The special servicer (the "Special Servicer"), if any, for a
series of Certificates will be named, or the circumstances
under which a Special Servicer will be appointed will be
described, in the related Prospectus Supplement. See
"Description of the Pooling Agreements--Special
Servicers".
Trustee...................... The trustee (the "Trustee") for each series of Certificates
will be named in the related Prospectus Supplement. See
"Description of the Pooling Agreements--The Trustee".
The Trust Assets............. Each series of Certificates will represent in the aggregate
the entire beneficial ownership interest in a Trust Fund
consisting primarily of:
A. Mortgage Assets......... The Mortgage Assets with respect to each series of
Certificates will consist of a pool of mortgage loans
(collectively, the "Mortgage Loans") secured by first or
junior liens on, or security interests in, or installment
contracts for the sale of, fee simple or leasehold
interests in, (i) residential properties consisting of
five or more rental or cooperatively-owned dwelling units
(the "Multifamily Properties") or (ii) shopping centers,
retail stores, office buildings, hotels or motels,
warehouse facilities, hospitals or other health-care
related facilities, mini-warehouse facilities or
self-storage facilities, mixed use, mobile home parks, or
other types of income-producing properties (the
"Commercial Properties"), (iii) CMBS or (iv)
participations in, or any combination of, the foregoing.
Bracketed property types to be included in order of the
magnitude of material concentration of such property type
in the Trust Fund. Property types absent from the Trust
Fund are to be deleted. If so specified in the related
Prospectus Supplement and if permitted by applicable law,
a Trust Fund may include (i) Multifamily Properties or
Commercial Properties acquired by foreclosure or by
deed-in-lieu
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of foreclosure ("REO Property") and (ii) Mortgage Loans
secured by liens on real estate projects under
construction. If so specified in the related Prospectus
Supplement, some Mortgage Loans may be delinquent as of
the date of their deposit into the related Trust Fund. A
Mortgage Loan will be considered "delinquent" if it is
thirty (30) days or more past its most recently
contractual scheduled payment date in payment of all
amounts due according to its terms. In any event, at the
time of its creation the Trust Fund will not include
delinquent loans which by principal amount are more than
20% of the aggregate principal amount of all Mortgage
Loans in the Trust Fund. The Mortgage Loans will not be
guaranteed or insured by the Depositor, any of its
affiliates or, unless otherwise specified in the
Prospectus Supplement, by any governmental agency or
instrumentality or any other person.
To the extent described in the related Prospectus
Supplement, some or all of the Mortgage Loans may also be
secured by an assignment of one or more leases (a "Lease
Assignment"), including bond-type or credit-type net
leases (each, a "Lease") of one or more lessees (each, a
"Lessee") of all or a portion of the related Mortgaged
Properties (as defined herein). Unless otherwise specified
in the related Prospectus Supplement, a significant or the
sole source of payments on certain Mortgage Loans will be
the rental payments due under the related Leases. In
certain circumstances, with respect to Commercial
Properties, the material terms and conditions of the
related Leases may be set forth in the related Prospectus
Supplement. See "Description of the Trust Funds--Mortgage
Loans--Leases" and "Risk Factors--Limited Assets" herein.
Unless otherwise provided in the related Prospectus
Supplement, the Mortgaged Properties may be located in any
one of the 50 states, the District of Columbia or the
Commonwealth of Puerto Rico. Unless otherwise provided in
the related Prospectus Supplement, all Mortgage Loans will
have individual principal balances at origination of not
less than $100,000 and original terms to maturity of not
more than 40 years.
As and to the extent described in the related Prospectus
Supplement, a Mortgage Loan (i) may provide for no accrual
of interest or for accrual of interest thereon at an
interest rate (a "Mortgage Rate") that is fixed over its
term or that adjusts from time to time, or that may be
converted at the borrower's election from an adjustable to
a fixed Mortgage Rate, or from a fixed to an adjustable
Mortgage Rate, (ii) may provide for the formula, index or
other method by which the Mortgage Rate will be
calculated, (iii) may provide for level payments to
maturity or for payments that adjust from time to time to
accommodate changes in the Mortgage Rate or to reflect the
occurrence of certain events, and may permit negative
amortization or accelerated amortization, (iv) may be
fully amortizing over its term to maturity, or may provide
for little or no amortization over its term and thus
require a balloon payment on its stated maturity date, (v)
may contain a prohibition on
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prepayment or require payment of a premium or a yield
maintenance penalty in connection with a prepayment and
(vi) may provide for payments of principal, interest or
both, on due dates that occur monthly or quarterly or at
such other interval as is specified in the related
Prospectus Supplement. See "Description of the Trust
Funds--Mortgage Loans--Leases".
If and to the extent specified in the related Prospectus
Supplement, the Mortgage Assets that constitute a
particular Trust Fund may also include or consist solely
of (i) private mortgage participations, mortgage
pass-through certificates or other mortgage-backed
securities such as mortgage-backed securities that are
similar to a series of Certificates or (ii) certificates
insured or guaranteed by the Federal Home Loan Mortgage
Corporation ("FHLMC"), the Federal National Mortgage
Association ("FNMA"), the Governmental National Mortgage
Association ("GNMA") or the Federal Agricultural Mortgage
Corporation ("FAMC") (collectively, the mortgage-backed
securities referred to in clauses (i) and (ii), "CMBS"),
provided that each CMBS will evidence an interest in, or
will be secured by a pledge of, one or more mortgage loans
that conform to the descriptions of the Mortgage Loans
contained herein. See "Description of the Trust
Funds--CMBS".
Each Mortgage Asset will be selected by the Depositor for
inclusion in a Trust Fund from among those purchased,
either directly or indirectly, from a prior holder thereof
(a "Mortgage Asset Seller"), which prior holder may or may
not be the originator of such Mortgage Loan or the issuer
of such CMBS and may be an affiliate of the Depositor, all
as more particularly described in the related Prospectus
Supplement.
B. Certificate Account..... Each Trust Fund will include one or more accounts
(collectively, the "Certificate Account") established and
maintained on behalf of the Certificateholders into which
the person or persons designated in the related Prospectus
Supplement will, to the extent described herein and in
such Prospectus Supplement, deposit all payments and
collections received or advanced with respect to the
Mortgage Assets and other assets in the Trust Fund. A
Certificate Account may be maintained as an interest
bearing or a non-interest bearing account, and funds held
therein may be held as cash or invested in certain
short-term, investment grade obligations, in each case as
described in the related Prospectus Supplement. See
"Description of the Trust Funds--Certificate Accounts" and
"Description of the Pooling Agreements--Certificate
Account".
C. Credit Support.......... If so provided in the related Prospectus Supplement, partial
or full protection against certain defaults and losses on
the Mortgage Assets in the related Trust Fund may be
provided to one or more classes of Certificates of the
related series in the form of subordination of one or more
other classes of Certificates of such series, which other
classes may include one or more classes of Offered
Certificates, or by one or more other types of credit
support, such as overcollateralization, a letter of
credit, insurance
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policy, guarantee or reserve fund or a combination thereof
(any such coverage with respect to the Certificates of any
series, "Credit Support"). The amount and types of any
Credit Support, the identification of the entity providing
it (if applicable) and related information will be set
forth in the related Prospectus Supplement. The Prospectus
Supplement for any series of Certificates evidencing an
interest in a Trust Fund that includes CMBS will describe
in the same fashion any similar forms of credit support
that are provided by or with respect to, or are included
as part of the trust fund evidenced by or providing
security for, such CMBS to the extent information is
available and deemed material. The type, characteristic
and amount of Credit Support will be determined based on
the characteristics of the Mortgage Assets and other
factors and will be established, in part, on the basis of
requirements of each Rating Agency rating the Certificates
of such series. If so specified in the related Prospectus
Supplement, any such Credit Support may apply only in the
event of certain types of losses or delinquencies and the
protection against losses or delinquencies provided by
such Credit Support will be limited. See "Risk
Factors--Credit Support Limitations", "Description of the
Trust Funds--Credit Support" and "Description of Credit
Support".
D. Cash Flow Agreements.... If so provided in the related Prospectus Supplement, a Trust
Fund may include guaranteed investment contracts pursuant to
which moneys held in the funds and accounts established
for the related series will be invested at a specified
rate. The Trust Fund may also include interest rate
exchange agreements, interest rate cap or floor
agreements, currency exchange agreements or similar
agreements designed to reduce the effects of interest rate
or currency exchange rate fluctuations on the Mortgage
Assets or on one or more classes of Certificates. The
principal terms of any such guaranteed investment contract
or other agreement (any such agreement, a "Cash Flow
Agreement"), including, without limitation, provisions
relating to the timing, manner and amount of payments
thereunder and provisions relating to the termination
thereof, will be described in the Prospectus Supplement
for the related series. In addition, the related
Prospectus Supplement will contain certain information
that pertains to the obligor under any such Cash Flow
Agreement. The Prospectus Supplement for any series of
Certificates evidencing an interest in a Trust Fund that
includes CMBS will describe in the same fashion any Cash
Flow Agreements that are included as part of the trust
fund evidenced by or providing security for such CMBS to
the extent information is available and deemed material.
See "Description of the Trust Funds--Cash Flow
Agreements".
E. Pre-Funding............. If so provided in the related Prospectus Supplement, a Trust
Fund may include amounts on deposit in a separate account
(the "Pre-Funding Account") which amounts will not exceed
25% of the pool balance of the Trust Fund as of the
Cut-off Date. Amounts on deposit in the Pre-Funding
Account may be used by the Trust Fund to acquire
additional Mortgage Assets, which additional Mortgage
Assets will be selected using criteria that is
substantially similar to
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the criteria used to select the Mortgage Assets included
in the Trust Fund on the Closing Date. The Trust Fund may
acquire such additional Mortgage Assets for a period of
time of not more than 120 days after the Closing Date (the
"Pre-Funding Period") as specified in the related
Prospectus Supplement. Amounts on deposit in the
Pre-Funding Account after the end of the Pre-Funding
Period, will be distributed to Certificateholders or such
other person as set forth in the related Prospectus
Supplement. If so provided in the related Prospectus
Supplement, the Trust Fund may include amounts on deposit
in a separate account (the "Capitalized Interest
Account"). Amounts on deposit in the Capitalized Interest
Account may be used to supplement investment earnings, if
any, of amounts on deposit in the Pre-Funding Account,
supplement interest collections of the Trust Fund, or such
other purpose as specified in the related Prospectus
Supplement. As set forth in a related Prospectus
Supplement, amounts on deposit in the Capitalized Interest
Account and Pre-Funding Account will be held in cash or
invested in short-term investment grade obligations. Any
amounts on deposit in the Capitalized Interest Account
will be released after the end of the Pre-Funding Period
as specified in the related Prospectus Supplement. See
"Risk Factors--Effects of Pre-Funding and Acquisition of
Additional Mortgage Assets."
Description of Each series of Certificates will be issued pursuant to a
Certificates................. pooling and servicing agreement or other agreement specified
in the related Prospectus Supplement (in either case, a
"Pooling Agreement") and will represent in the aggregate
the entire beneficial ownership interest in the related
Trust Fund.
Each series of Certificates may consist of one or more
classes of Certificates, and such class or classes
(including classes of Offered Certificates) may (i) be
senior (collectively, "Senior Certificates") or
subordinate (collectively, "Subordinate Certificates") to
one or more other classes of Certificates in entitlement
to certain distributions on the Certificates; (ii) be
entitled to distributions of principal, with
disproportionately small, nominal or no distributions of
interest (collectively, "Stripped Principal
Certificates"); (iii) be entitled to distributions of
interest, with disproportionately small, nominal or no
distributions of principal (collectively, "Stripped
Interest Certificates"); (iv) provide for distributions of
principal and/or interest that commence only after the
occurrence of certain events, such as the retirement of
one or more other classes of Certificates of such series;
(v) provide for distributions of principal to be made,
from time to time, or for designated periods, at a rate
that is faster (and, in some cases, substantially faster)
or slower (and, in some cases, substantially slower) than
the rate at which payments or other collections of
principal are received on the Mortgage Assets in the
related Trust Fund; (vi) provide for distributions of
principal to be made, subject to available funds, based on
a specified principal payment schedule or other
methodology; and/or (vii) provide for distributions based
on a
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combination of two or more components thereof with one or
more of the characteristics described in this paragraph,
including a Stripped Principal Certificate component and a
Stripped Interest Certificate component, to the extent of
available funds, in each case as described in the related
Prospectus Supplement. Any such classes may include
classes of Offered Certificates. With respect to
Certificates with two or more components, references
herein to Certificate Balance, notional amount and
Pass-Through Rate refer to the principal balance, if any,
notional amount, if any, and the Pass-Through Rate, if
any, for any such component.
Each class of Certificates, other than certain classes of
Stripped Interest Certificates and certain REMIC Residual
Certificates (as defined below), will have a stated
principal amount (a "Certificate Balance"), and each class
of Certificates, other than certain classes of Stripped
Principal Certificates and certain REMIC Residual
Certificates, will accrue interest on its Certificate
Balance or, in the case of certain classes of Stripped
Interest Certificates, on a notional amount ("Notional
Amount"), based on a fixed, variable or adjustable
interest rate (a "Pass-Through Rate"). The related
Prospectus Supplement will specify the Certificate
Balance, Notional Amount and Pass-Through Rate for each
class of Offered Certificates, as applicable, or, in the
case of a variable or adjustable Pass-Through Rate, the
method for determining the Pass-Through Rate.
The Certificates will not be guaranteed or insured by the
Depositor or any of its affiliates, by any governmental
agency or instrumentality or by any other person, unless
otherwise provided in the related Prospectus Supplement.
See "Risk Factors--Limited Assets" and "Description of the
Certificates".
Distributions of Interest on
the Certificates............. Interest on each class of Offered Certificates Certificates
(other than certain classes of Stripped Principal
Certificates and Stripped Interest Certificates and
certain REMIC Residual Certificates) of each series will
accrue at the applicable Pass-Through Rate on the
Certificate Balance or, in the case of certain classes of
Stripped Interest Certificates, the Notional Amount
thereof outstanding from time to time and will be
distributed to Certificateholders as provided in the
related Prospectus Supplement (each of the specified dates
on which distributions are to be made, a "Distribution
Date"). Distributions of interest with respect to one or
more classes of Certificates (collectively, "Accrual
Certificates") may not commence until the occurrence of
certain events, such as the retirement of one or more
other classes of Certificates, and interest accrued with
respect to a class of Accrual Certificates prior to the
occurrence of such an event will either be added to the
Certificate Balance thereof or otherwise deferred.
Distributions of interest with respect to one or more
classes of Certificates may be reduced to the extent of
certain delinquencies, losses and other contingencies
described herein and in the related Prospectus
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Supplement. See "Risk Factors--Prepayments; Average Life
of Certificates; Yields", "Yield and Maturity
Considerations", and "Description of the
Certificates--Distributions of Interest on the
Certificates".
Distributions of Certificate
Principal.................... Each class of the Certificates of each series (other than
certain classes of Stripped Interest Certificates and/or
REMIC Residual Certificates) will have a Certificate
Balance which, as of any date, will represent the maximum
amount that the holders thereof are then entitled to
receive in respect of principal from future cash flow on
the Mortgage Assets in the related Trust Fund. Unless
otherwise specified in the related Prospectus Supplement,
the initial aggregate Certificate Balance of all classes
of a series of Certificates will not exceed the
outstanding principal balance of the related Mortgage
Assets as of a specified date (the "Cut-off Date"), after
application of scheduled payments due on or before such
date, whether or not received. As and to the extent
described in the related Prospectus Supplement,
distributions of principal with respect to each series of
Certificates will be made on each Distribution Date to the
holders of the class or classes of Certificates of such
series entitled thereto until the Certificate Balances of
such Certificates have been reduced to zero. Distributions
of principal with respect to one or more classes of
Certificates (i) may be made at a rate that is faster
(and, in some cases, substantially faster) than the rate
at which payments or other collections of principal are
received on the Mortgage Assets in the related Trust Fund;
(ii) may not commence until the occurrence of certain
events, such as the retirement of one or more other
classes of Certificates of the same series, or may be made
at a rate that is slower (and, in some cases,
substantially slower) than the rate at which payments or
other collections of principal are received on the
Mortgage Assets in the related Trust Fund; (iii) may be
made, subject to available funds, based on a specified
principal payment schedule for any such class, a
"Controlled Amortization Class"); and (iv) may be
contingent on the specified principal payment schedule for
a Controlled Amortization Class of the same series and the
rate at which payments and other collections of principal
on the Mortgage Assets in the related Trust Fund are
received (any such class, a "Companion Class"). Unless
otherwise specified in the related Prospectus Supplement,
distributions of principal of any class of Certificates
will be made on a pro rata basis among all of the
Certificates of such class. See "Description of the
Certificates-- Distributions of Certificate Principal".
Advances..................... If and to the extent provided in the related Prospectus
Supplement, the Master Servicer and/or another specified
person will be obligated to make, or have the option of
making, certain advances with respect to delinquent
scheduled payments of principal and/or interest on the
Mortgage Loans in the related Trust Fund. Any such
advances made with respect to a particular Mortgage Loan
will be reimbursable from subsequent recoveries in respect
of such
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Mortgage Loan and otherwise to the extent described herein
and in the related Prospectus Supplement. If and to the
extent provided in the Prospectus Supplement for a series
of Certificates, the Master Servicer or other specified
person will be entitled to receive interest on its
advances for the period that they are outstanding, payable
from amounts in the related Trust Fund. See "Description
of the Certificates--Advances in Respect of
Delinquencies". If a Trust Fund includes CMBS, any
comparable advancing obligation of a party to the related
Pooling Agreement, or of a party to the related CMBS
Agreement, will be described in the related Prospectus
Supplement.
Termination.................. If so specified in the related Prospectus Supplement, a
series of Certificates will be subject to optional early
termination by means of the repurchase of the Mortgage
Assets in the related Trust Fund by the party or parties
specified therein, under the circumstances and in the
manner set forth therein. If so provided in the related
Prospectus Supplement, upon the reduction of the
Certificate Balance of a specified class or classes of
Certificates by a specified percentage or amount, a party
specified therein may be authorized or required to solicit
bids for the purchase of all of the Mortgage Assets of the
Trust Fund, or of a sufficient portion of such Mortgage
Assets to retire such class or classes, under the
circumstances and in the manner set forth therein.
Further, if so provided in the related Prospectus
Supplement, certain classes of Certificates may be
purchased by a party or parties specified therein under
similar or other conditions as described therein. See
"Description of the Certificates--Termination".
Registration of Book-Entry
Certificates................. If so provided in the related Prospectus Supplement, one or
more classes of the Offered Certificates of any series will
be offered in book-entry format (collectively, "Book-Entry
Certificates") through the facilities of DTC. Each class
of Book-Entry Certificates will be initially represented
by one or more Certificates registered in the name of a
nominee of DTC. No person acquiring an interest in a class
of Book-Entry Certificates (a "Certificate Owner") will be
entitled to receive a Certificate of such class in fully
registered, definitive form (a "Definitive Certificate"),
except under the limited circumstances described herein.
See "Risk Factors--Book-Entry Registration" and
"Description of the Certificates--Book-Entry Registration
and Definitive Certificates".
Risk Factors................. Risk Factors There are material risks associated with an
investment in Certificates. See "Risk Factors" herein.
Additional risks pertaining to a particular series of
Certificates may be disclosed in the applicable Prospectus
Supplement.
Tax Status of the The Certificates of each series will constitute either (i)
Certificates................. "regular interests" ("REMIC Regular Certificates") and
"residual interests" ("REMIC Residual Certificates") in a
Trust Fund, or a designated portion thereof, treated as a
REMIC under Sections 860A through 860G of the Internal
Revenue Code of 1986 (the "Code"), or (ii)
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interests ("Grantor Trust Certificates") in a Trust Fund
treated as a grantor trust under applicable provisions of
the Code. If so indicated in the related Prospectus
Supplement, an election alternatively may be made to treat
the Trust Fund as a financial asset securitization
investment trust ("FASIT").
A. REMIC................... REMIC Regular Certificates generally will be treated as debt
obligations of the applicable REMIC for federal income tax
purposes. In general, to the extent the assets and income
of the REMIC are treated as qualifying assets and income
under the following sections of the Code, REMIC Regular
Certificates owned by a real estate investment trust will
be treated as "real estate assets" for purposes of Section
856(c)(4)(A) of the Code and interest income therefrom
will be treated as "interest on obligations secured by
mortgages on real property" for purposes of Section
856(c)(3)(B) of the Code. In addition, REMIC Regular
Certificates will be "qualified mortgages" within the
meaning of Section 860G(a)(3) of the Code. Moreover, if
95% or more of the assets and the income of the REMIC
qualify for any of the foregoing treatments, the REMIC
Regular Certificates will qualify for the foregoing
treatments in their entirety. However, REMIC Regular
Certificates owned by a thrift institution will constitute
assets described in Section 7701(a)(19)(C) of the Code
only if so specified in the related Prospectus Supplement.
If so specified in the related Prospectus Supplement,
certain of the REMIC Regular Certificates may be issued
with original issue discount. See "Material Federal Income
Tax Consequences--REMICs--Taxation of Owners of REMIC
Regular Certificates".
REMIC Residual Certificates generally will be treated as
representing an interest in qualifying assets and income
to the same extent described above for institutions
subject to Sections 856(c)(4)(A) and 856(c)(3)(B) of the
Code, but not for purposes of Section 7701(a)(19)(C) of
the Code unless otherwise stated in the related Prospectus
Supplement. A portion (or, in certain cases, all) of the
income from REMIC Residual Certificates (i) may not be
offset by any losses from other activities of the holder
of such REMIC Residual Certificates, (ii) may be treated
as unrelated business taxable income for holders of REMIC
Residual Certificates that are subject to tax on unrelated
business taxable income (as defined in Section 511 of the
Code), and (iii) may be subject to foreign withholding
rules. See "Material Income Tax Consequences--
REMICs--Taxation of Owners of REMIC Residual
Certificates".
B. Grantor Trust........... If so provided in the related Prospectus Supplement, Grantor
Trust Certificates may be either Certificates that have a
Certificate Balance and a Pass-Through Rate or that are
Stripped Principal Certificates (collectively, "Grantor
Trust Fractional Interest Certificates"), or may be
Stripped Interest Certificates. Holders of Grantor Trust
Fractional Interest Certificates generally will be treated
as owning an interest in qualifying assets and income
under Sections 856(c)(5)(A), 856(c)(3)(B) and 860G(a)(3)
of the Code,
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but will not be so treated for purposes of Section
7701(a)(19)(C) of the Code unless otherwise stated in the
related Prospectus Supplement.
It is unclear whether Stripped Interest Certificates will be
treated as representing an ownership interest in
qualifying assets and income under Sections 856(c)(5)(A)
and 856(c)(3)(B) of the Code, although the policy
considerations underlying those Sections suggest that such
treatment should be available. However, such Certificates
will not be treated as representing an ownership interest
in assets described in Section 7701(a)(19)(C) of the Code
unless otherwise stated in the related Prospectus
Supplement. The taxation of holders of Stripped Interest
Certificates is uncertain in various respects, including
in particular the method such holders should use to
recover their purchase price and to report their income
with respect to such Stripped Interest Certificates. See
"Material Federal Income Tax Consequences--Grantor Trust
Funds".
Investors are advised to consult their tax advisors with
respect to the taxation of holders of Stripped Interest
Certificates and to review "Material Federal Income Tax
Consequences" herein and in the related Prospectus
Supplement.
ERISA Considerations......... Fiduciaries of employee benefit plans and certain other
retirement plans and arrangements, including individual
retirement accounts, annuities, Keogh plans, collective
investment funds, separate and general accounts in which
such plans, accounts, annuities or arrangements are
invested, that are subject to the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"), or
Section 4975 of the Code, should carefully review with
their legal advisors whether the purchase or holding of
Offered Certificates could give rise to a transaction that
is prohibited or is not otherwise permissible either under
ERISA or Section 4975 of the Code. See "ERISA
Considerations" herein and in the related Prospectus
Supplement.
Legal Investment............. The Offered Certificates of any series will constitute
"mortgage related securities" for purposes of the Secondary
Mortgage Market Enhancement Act of 1984 only if so
specified in the related Prospectus Supplement. Investors
whose investment authority is subject to legal
restrictions should consult their own legal advisors to
determine whether and to what extent the Offered
Certificates constitute legal investments for them. See
"Legal Investment" herein and in the related Prospectus
Supplement.
Rating....................... At their respective dates of issuance, each class of Offered
Certificates will be rated not lower than investment grade
by one or more nationally recognized statistical rating
agencies requested by the Depositor to rate the Offered
Certificates (each, a "Rating Agency"). See "Rating"
herein and in the related Prospectus Supplement.
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RISK FACTORS
In considering an investment in the Offered Certificates of any series,
investors should consider, among other things, the following factors and any
other factors set forth under the heading "Risk Factors" in the related
Prospectus Supplement. Additional risk factors are set forth elsewhere in the
Prospectus under separate headings, and will be set forth in the related
Prospectus Supplement under separate headings, in connection with discussions
regarding particular aspects of Trust Fund Assets or the Certificates. In
general, to the extent that the factors discussed below pertain to or are
influenced by the characteristics or behavior of Mortgage Loans included in a
particular Trust Fund, they would similarly pertain to and be influenced by the
characteristics or behavior of the mortgage loans underlying any CMBS included
in such Trust Fund.
LIMITED LIQUIDITY FOR OFFERED CERTIFICATES
There can be no assurance that a secondary market for the Offered
Certificates of any series will develop or, if it does develop, that it will
provide holders with liquidity of investment or will continue for as long as
such Certificates remain outstanding. Furthermore, because, among other things,
the timing of receipt of payments with respect to a pool of multifamily or
commercial mortgage loans may be substantially more difficult to predict than
that of a pool of single family mortgage loans, any such secondary market that
does develop may provide less liquidity to investors than any comparable market
for securities that evidence interests in single-family mortgage loans.
The primary source of continuing information regarding the Offered
Certificates of any series, including information regarding the status of the
related Mortgage Assets and any Credit Support for such Certificates, will be
the periodic reports to Certificateholders delivered pursuant to the related
Pooling Agreement as described herein under the heading "Description of the
Certificates--Reports to Certificateholders". There can be no assurance that any
additional continuing information regarding the Offered Certificates of any
series will be available through any other source, and the limited nature of
such information may adversely affect the liquidity thereof, even if a secondary
market for such Certificates does develop.
Except to the extent described herein and in the related Prospectus
Supplement, Certificateholders will have no redemption rights, and the Offered
Certificates of each series are subject to early retirement only under certain
specified circumstances described herein and in the related Prospectus
Supplement. See "Description of the Certificates--Termination".
LIMITED ASSETS TO SUPPORT PAYMENT ON CERTIFICATES
Unless otherwise specified in the related Prospectus Supplement, neither the
Offered Certificates of any series nor the Mortgage Assets in the related Trust
Fund will be guaranteed or insured by the Depositor or any of its affiliates, by
any governmental agency or instrumentality or by any other person; and no
Offered Certificate of any series will represent a claim against or security
interest in the Trust Funds for any other series. Accordingly, if the related
Trust Fund has insufficient assets to make payments on such Certificates, no
other assets will be available for payment of the deficiency. See "Description
of the Trust Funds". Additionally, certain amounts on deposit from time to time
remaining in certain funds or accounts constituting part of a Trust Fund,
including the Certificate Account and any accounts maintained as Credit Support,
may be withdrawn under certain conditions that will be described in the related
Prospectus Supplement, for purposes other than the payment of principal of or
interest on the related series of Certificates. If so provided in the Prospectus
Supplement for a series of Certificates consisting of one or more classes of
Subordinate Certificates, on any Distribution Date in respect of which losses or
shortfalls in collections on the Mortgage Assets have been incurred, the amount
of such losses or shortfalls will be borne first by one or more classes of the
Subordinate Certificates and, thereafter, by the remaining classes of
Certificates in the priority and manner and subject to the limitations specified
in such Prospectus Supplement.
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PREPAYMENTS ON MORTGAGE LOANS; EFFECTS ON AVERAGE LIFE OF CERTIFICATES; EFFECTS
ON YIELDS ON CERTIFICATES
For a number of reasons, including the difficulty of predicting the rate of
prepayments on the Mortgage Loans in a particular Trust Fund, the amount and
timing of distributions of principal and/or interest on the Offered Certificates
of the related series may be highly unpredictable. Prepayments on the Mortgage
Loans in any Trust Fund will result in a faster rate of principal payments on
one or more classes of the related Certificates than if payments on such
Mortgage Loans were made as scheduled. Thus, the prepayment experience on the
Mortgage Loans may affect the average life of each class of such Certificates,
including a class of Offered Certificates. The rate of principal payments on
pools of mortgage loans varies among pools and from time to time is influenced
by a variety of economic, demographic, geographic, social, tax, legal and other
factors. For example, if prevailing interest rates fall significantly below the
Mortgage Rates borne by the Mortgage Loans included in a Trust Fund, principal
prepayments are likely to be higher than if prevailing rates remain at or above
the rates borne by those Mortgage Loans. Conversely, if prevailing interest
rates rise significantly above the Mortgage Rates borne by the Mortgage Loans
included in a Trust Fund, principal prepayments thereon are likely to be lower
than if prevailing interest rates remain at or below the rates borne by those
Mortgage Loans. There can be no assurance as to the rate of prepayments on the
Mortgage Loans in any Trust Fund or that such rate will conform to any model
described herein or in any Prospectus Supplement. As a result, depending on the
anticipated rate of prepayment for the Mortgage Loans in any Trust Fund, the
retirement of any class of Certificates of the related series could occur
significantly earlier or later than expected.
The extent to which prepayments on the Mortgage Loans in any Trust Fund
ultimately affect the average life of any class of Certificates of the related
series will depend on the terms of such Certificates. A class of Certificates,
including a class of Offered Certificates, may provide that on any Distribution
Date the holders of such Certificates are entitled to (i) a pro rata share of
the prepayments (including prepayments occasioned by defaults) on the Mortgage
Loans in the related Trust Fund that are distributable on such date, (ii) a
disproportionately large share (which, in some cases, may be all) of such
prepayments, or (iii) a disproportionately small share (which, in some cases,
may be none) of such prepayments. A class of Certificates that entitles the
holders thereof to a disproportionately large share of prepayments enhances the
risk of early retirement of such class ("call risk") if the rate of prepayment
is faster than anticipated. A class of Certificates that entitles the holders
thereof to a disproportionately small share of prepayments enhances the risk of
an extended average life of such class ("extension risk") if the rate of
prepayment is slower than anticipated. As and to the extent described in the
related Prospectus Supplement, the respective entitlements of the various
classes of Certificateholders of any series to receive payments (and, in
particular, prepayments) of principal of the Mortgage Loans in the related Trust
Fund may vary based on the occurrence of certain events (e.g., the retirement of
one or more classes of Certificates of such series) or subject to certain
contingencies (e.g., prepayment and default rates with respect to such Mortgage
Loans).
A series of Certificates may include one or more Controlled Amortization
Classes that will be entitled to receive principal distributions according to a
specified principal payment schedule. Although prepayment risk cannot be
eliminated entirely for any class of Certificates, it can be reduced
substantially in the case of a Controlled Amortization Class so long as the
actual rate of prepayments on the Mortgage Loans in the related Trust Fund
remains relatively constant at the rate, or within the range of rates, of
prepayment used to establish the specific principal payment schedule for such
Certificates. However, the reduction of prepayment risk afforded to a Controlled
Amortization Class comes at the expense of one or more Companion Classes of the
same series, any of which Companion Classes may also be a class of Offered
Certificates. In general, and as more specifically described in the related
Prospectus Supplement, a Companion Class will entitle the holders thereof to a
disproportionately large share of prepayments on the Mortgage Loans in the
related Trust Fund when the rate of prepayment is relatively fast and to a
disproportionately small share of those prepayments when the rate of prepayment
is relatively slow. A
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Companion Class thus absorbs some (but not all) of the "call risk" and/or
"extension risk" that would otherwise affect the related Controlled Amortization
Class if all payments of principal of the Mortgage Loans were allocated on a pro
rata basis.
A series of Certificates may also include one or more classes of Offered
Certificates offered at a premium or discount. Yields on such classes of
Certificates will be sensitive, and in some cases extremely sensitive, to
prepayments on the Mortgage Loans in the related Trust Fund. Where the amount of
interest payable with respect to a class is disproportionately large, as
compared to the amount of principal, as with certain classes of Stripped
Interest Certificates, a holder might fail to recoup its original investment
under some prepayment scenarios. An investor should consider, in the case of any
Offered Certificate purchased at a discount, the risk that a slower than
anticipated rate of principal payments on the Mortgage Loans could result in an
actual yield to such investor that is lower than the anticipated yield and, in
the case of any Offered Certificate purchased at a premium, the risk that a
faster than anticipated rate of principal payments could result in an actual
yield to such investor that is lower than the anticipated yield. See "Yield and
Maturity Considerations" herein and, if applicable, in the related Prospectus
Supplement.
OPTIONAL EARLY TERMINATION
If so specified in the related Prospectus Supplement, a series of
Certificates may be subject to optional early termination by means of the
repurchase of the Mortgage Assets in the related Trust Fund by the party or
parties specified therein, under the circumstances and in the manner set forth
therein. If so provided in the related Prospectus Supplement, upon the reduction
of the Certificate Balance of a specified class or classes of Certificates by a
specified percentage or amount, a party specified therein may be authorized or
required to solicit bids for the purchase of all of the Mortgage Assets of the
Trust Fund, or of a sufficient portion of such Mortgage Assets to retire such
class or classes, under the circumstances and in the manner set forth therein.
In the event of a partial or complete termination of a Trust Fund, there can be
no assurance that the proceeds from a sale of the Mortgage Assets will be
sufficient to distribute the outstanding Certificate Balance plus accrued
interest and any undistributed shortfalls in interest accrued on the
Certificates subject to the termination. Accordingly the holders of such
Certificates may incur a loss. See "Description of the
Certificates--Termination." In the event that partial or complete early
termination of a series of Certificates is authorized and does occur in this
manner, the holders of the series of Certificates or one or more classes of a
series of Certificates that are terminated early may experience repayment of
their investment outside their control at an unpredictable and inopportune time.
Moreover, such early termination could have an adverse impact on the overall
yield received by such holder, depending, among other factors, upon the amount
of the series of Certificates or class or classes of such series that is
outstanding at the time of early termination.
LIMITED NATURE OF RATINGS ON CERTIFICATES
Any rating assigned by a Rating Agency to a class of Offered Certificates
will reflect only its assessment of the likelihood that holders of Certificates
of such class will receive payments to which such Certificateholders are
entitled under the related Pooling Agreement. Such rating will not constitute an
assessment of the likelihood that principal prepayments (including those caused
by defaults) on the related Mortgage Loans will be made, the degree to which the
rate of such prepayments might differ from that originally anticipated or the
likelihood of early optional termination of the related Trust Fund. Such rating
will not address the possibility that prepayments on the related Mortgage Loans
at a higher or lower rate than anticipated by an investor may cause such
investor to experience a lower than anticipated yield or that an investor that
purchases an Offered Certificate at a significant premium might fail to recoup
its initial investment under certain prepayment scenarios.
The amount, type and nature of Credit Support, if any, provided with respect
to a series of Certificates will be determined on the basis of criteria
established by each Rating Agency rating classes of the Certificates of such
series. Those criteria are sometimes based upon an actuarial analysis of the
behavior of
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mortgage loans in a larger group. However, there can be no assurance that the
historical data supporting any such actuarial analysis will accurately reflect
future experience, or that the data derived from a large pool of mortgage loans
will accurately predict the delinquency, foreclosure or loss experience of any
particular pool of Mortgage Loans. In other cases, such criteria may be based
upon determinations of the values of the Mortgaged Properties that provide
security for the Mortgage Loans. However, no assurance can be given that those
values will not decline in the future. See "Description of Credit Support" and
"Rating".
EFFECTS OF PRE-FUNDING AND ACQUISITION OF ADDITIONAL MORTGAGE ASSETS
Any amounts on deposit in a Pre-Funding Account as described in the
Prospectus Supplement for a series of Certificates that is not used to acquire
additional Mortgage Assets by the end of the Pre-Funding Period, may be
distributed to holders of Certificates as a prepayment of principal as set forth
in the related Prospectus Supplement. Such a prepayment of principal to the
holders of Certificates may materially and adversely affect the yield on the
Certificates. See "Yield and Maturity Considerations" herein and, if applicable,
in the related Prospectus Supplement.
Any additional Mortgage Assets acquired by a Trust Fund during the
Pre-Funding Period, as described in the related Prospectus Supplement, may
possess substantially different characteristics than the Mortgage Assets in the
Trust Fund on the Closing Date. Therefore the aggregate characteristics of a
Trust Fund following the Pre-Funding Period may be substantially different than
the characteristics of a Trust Fund on the Closing Date.
RISKS TO LENDERS ASSOCIATED WITH CERTAIN INCOME
PRODUCING LOANS AND MORTGAGED PROPERTIES
Mortgage loans made on the security of multifamily or commercial property
may entail risks of delinquency and foreclosure, and risks of loss in the event
thereof, that are greater than similar risks associated with loans made on the
security of single-family property. See "Description of the Trust Funds--
Mortgage Loans-Leases". The ability of a borrower to repay a loan secured by an
income-producing property typically is dependent primarily upon the successful
operation of such property rather than upon the existence of independent income
or assets of the borrower; thus, the value of an income producing property is
directly related to the net operating income derived from such property. If the
net operating income of the property is reduced (for example, if rental or
occupancy rates decline or real estate tax rates or other operating expenses
increase), the borrower's ability to repay the loan may be impaired. A number of
the Mortgage Loans may be secured by liens on owner-occupied Mortgaged
Properties or on Mortgaged Properties leased to a single tenant. Accordingly, a
decline in the financial condition of the borrower or single tenant, as
applicable, may have a disproportionately greater effect on the net operating
income from such Mortgaged Properties than would be the case with respect to
Mortgaged Properties with multiple tenants. Furthermore, the value of any
Mortgaged Property may be adversely affected by risks generally incident to
interests in real property, including changes in general or local economic
conditions and/or specific industry segments; declines in real estate values;
declines in rental or occupancy rates; increases in interest rates, real estate
tax rates and other operating expenses; changes in governmental rules,
regulations and fiscal policies, including environmental legislation, acts of
God; and other factors beyond the control of a Master Servicer.
It is anticipated that some or all of the Mortgage Loans included in any
Trust Fund will be nonrecourse loans or loans for which recourse may be
restricted or unenforceable. As to those Mortgage Loans, recourse in the event
of borrower default will be limited to the specific real property and other
assets, if any, that were pledged to secure the Mortgage Loan. However, even
with respect to those Mortgage Loans that provide for recourse against the
borrower and its assets generally, there can be no assurance that enforcement of
such recourse provisions will be practicable, or that the assets of the
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borrower will be sufficient to permit a recovery in respect of a defaulted
Mortgage Loan in excess of the liquidation value of the related Mortgaged
Property.
Further, the concentration of default, foreclosure and loss risks in
individual Mortgage Loans in a particular Trust Fund will generally be greater
than for pools of single-family loans because Mortgage Loans in a Trust Fund
will generally consist of a smaller number of higher balance loans than would a
pool of single-family loans of comparable aggregate unpaid principal balance.
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY MULTIFAMILY PROPERTIES. If
so specified in the related Prospectus Supplement, Mortgage Loans secured by
multi-family properties will constitute a material concentration of the Mortgage
Loans in a Trust Fund. Adverse economic conditions, either local, regional or
national, may limit the amount of rent that can be charged for rental units, and
may result in a reduction in timely rent payments or a reduction in occupancy
levels. Occupancy and rent levels may also be affected by construction of
additional housing units, local military base closings, developments at local
colleges and universities and national, regional and local politics, including,
in the case of multifamily rental properties, current or future rent
stabilization and rent control laws and agreements. In addition, the level of
mortgage interest rates may encourage tenants in multifamily rental properties
to purchase housing. Furthermore, tax credit and city, state and federal housing
subsidy or similar programs may impose rent limitations and may adversely affect
the ability of the applicable borrowers to increase rents to maintain such
Mortgaged Properties in proper condition during periods of rapid inflation or
declining market value of such Mortgaged Properties. In addition, such programs
may impose income restrictions on tenants, which may reduce the number of
eligible tenants in such Mortgaged Properties and result in a reduction in
occupancy rates applicable thereto. Furthermore, some eligible tenants may not
find any differences in rents between such subsidized or supported properties
and other multifamily rental properties in the same area to be a sufficient
economic incentive to reside at a subsidized or supported property, which may
have fewer amenities or otherwise be less attractive as a residence. All of
these conditions and events may increase the possibility that a borrower may be
unable to meet its obligations under its Mortgage Loan.
Multifamily projects are part of a market that, in general, is characterized
by low barriers to entry. Thus, a particular apartment market with historically
low vacancies could experience substantial new construction, and a resultant
oversupply of units, in a relatively short period of time. Because multifamily
apartment units are typically leased on a short-term basis, the tenants who
reside in a particular project within such a market may easily move to
alternative projects with more desirable amenities or locations.
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY RETAIL PROPERTIES. Mortgage
Loans secured by retail properties may constitute a material concentration of
the Mortgage Loans in a Trust Fund. Significant factors determining the value of
retail properties are the quality of the tenants as well as fundamental aspects
of real estate such as location and market demographics. The correlation between
the success of tenant businesses and property value is more direct with respect
to retail properties than other types of commercial property because a
significant component of the total rent paid by retail tenants is often tied to
a percentage of gross sales. Significant tenants at a retail property play an
important part in generating customer traffic and making a retail property a
desirable location for other tenants at such property. Accordingly, retail
properties may be adversely affected if a significant tenant ceases operations
at such locations (which may occur on account of a voluntary decision not to
renew a lease, bankruptcy or insolvency of such tenant, such tenant's general
cessation of business activities or for other reasons). In addition, certain
tenants at retail properties may be entitled to terminate their leases or pay
reduced rent if an anchor tenant ceases operations at such property. In such
cases, there can be no assurance that any such anchor tenants will continue to
occupy space in the related shopping centers.
Shopping centers, in general, are affected by the health of the retail
industry, which is currently undergoing a consolidation and is experiencing
changes due to the growing market share of "off-price" retailing, and a
particular shopping center may be adversely affected by the bankruptcy or
decline in drawing power of an anchor tenant, the risk that an anchor tenant may
vacate notwithstanding such tenant's continuing obligation to pay rent, a shift
in consumer demand due to demographic changes (for
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example, population decreases or changes in average age or income) and/or
changes in consumer preference (for example, to discount retailers).
Unlike other income producing properties, retail properties also face
competition from sources outside a given real estate market. Catalogue
retailers, home shopping networks, the Internet, telemarketing and outlet
centers all compete with more traditional retail properties for consumer
dollars. Continued growth of these alternative retail outlets (which are often
characterized by lower operating costs) could adversely affect the rents
collectible at the retail properties which secure Mortgage Loans in a Trust
Fund.
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY OFFICE BUILDINGS. Mortgage
Loans secured by office buildings may constitute a material concentration of the
Mortgage Loans in a Trust Fund. Significant factors determining the value of
office buildings are the quality of the tenants in the building, the physical
attributes of the building in relation to competing buildings and the strength
and stability of the market area as a desirable business location. Office
buildings may be adversely affected by an economic decline in the business
operated by the tenants. The risk of such an adverse effect is increased if
revenue is dependent on a single tenant or if there is a significant
concentration of tenants in a particular business or industry.
Office buildings are also subject to competition with other office
properties in the same market. Competition is affected by a property's age,
condition, design (e.g., floor sizes and layout), access to transportation and
ability or inability to offer certain amenities to its tenants, including
sophisticated building systems (such as fiberoptic cables, satellite
communications or other base building technological features).
The success of an office building also depends on the local economy. A
company's decision to locate office headquarters in a given area, for example,
may be affected by such factors as labor cost and quality, tax environment and
quality of life issues such as schools and cultural amenities. A central
business district may have an economy which is markedly different from that of a
suburb. The local economy and the financial condition of the owner will impact
on an office building's ability to attract stable tenants on a consistent basis.
In addition, the cost of refitting office space for a new tenant is often more
costly than for other property types.
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY HOSPITALITY
PROPERTIES. Mortgage Loans secured by hospitality properties may constitute a
material concentration of the Mortgage Loans in a Trust Fund. Various factors,
including location, quality and franchise affiliation (or lack thereof), affect
the economic viability of a hospitality property (i.e., a hotel). Adverse
economic conditions, either local, regional or national, may limit the amount
that a consumer is willing to pay for a room and may result in a reduction in
occupancy levels. The construction of competing hospitality properties or motels
can have similar effects. Because hotel rooms generally are rented for short
periods of time, hospitality properties tend to be more sensitive to adverse
economic conditions and competition than do other commercial properties.
Furthermore, the financial strength and capabilities of the owner and operator
of a hospitality property may have a substantial impact on such property's
quality of service and economic performance. Additionally, the hotel and lodging
industry is generally seasonal in nature and this seasonality can be expected to
cause periodic fluctuations in room and other revenues, occupancy levels, room
rates and operating expenses.
In addition, the successful operation of a hospitality property with a
franchise affiliation may depend in part upon the strength of the franchisor,
the public perception of the franchise service mark and the continued existence
of any franchise license agreement. The transferability of a franchise license
agreement may be restricted, and a lender or other person that acquires title to
a hospitality property as a result of foreclosure may be unable to succeed to
the borrower's rights under the franchise license agreement. Moreover, the
transferability of a hospitality property's operating, liquor and other licenses
upon a transfer of the hospitality property, whether through purchase or
foreclosure, is subject to local law requirements and may not be transferable.
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RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY RESIDENTIAL HEALTHCARE
FACILITIES. Mortgage Loans secured by residential healthcare facilities (i.e.,
nursing homes) may constitute a material concentration of the Mortgage Loans in
a Trust Fund. Mortgage Loans secured by liens on residential health care
facilities pose additional risks not associated with loans secured by liens on
other types of income-producing properties. Providers of long-term nursing care,
assisted living and other medical services are subject to federal and state laws
that relate to the adequacy of medical care, distribution of pharmaceuticals,
rate setting, equipment, personnel, operating policies and additions to
facilities and services and, to the extent dependent on patients whose fees are
reimbursed by private insurers, to the reimbursement policies of such insurers.
The failure of any of such borrowers to maintain or renew any required license
or regulatory approval could prevent it from continuing operations at a
Mortgaged Property (in which case no revenues would be received from such
property or portion thereof requiring licensing) or, if applicable, bar it from
participation in government reimbursement programs. Furthermore, in the event of
foreclosure, there can be no assurance that the Trustee or any other purchaser
at a foreclosure sale would be entitled to the rights under such licenses and
such party may have to apply in its own right for such a license. There can be
no assurance that a new license could be obtained or that the related Mortgaged
Property would be adaptable to other uses. To the extent any residential
healthcare facility receives a significant portion of its revenues from
government reimbursement programs, primarily Medicaid and Medicare, such
revenues may be subject to statutory and regulatory changes, retroactive rate
adjustments, administrative rulings, policy interpretations, delays by fiscal
intermediaries and government funding restrictions. Moreover, governmental
payors have employed cost-containment measures that limit payments to health
care providers, and there are currently under consideration various proposals in
the United States Congress that could materially change or curtail those
payments. Accordingly, there can be no assurance that payments under government
reimbursement programs will, in the future, be sufficient to fully reimburse the
cost of caring for program beneficiaries. If not, net operating income of the
Mortgaged Properties that receive substantial revenues from those sources, and
consequently the ability of the related borrowers to meet their Mortgage Loan
obligations, could be adversely affected. Under applicable federal and state
laws and regulations, including those that govern Medicare and Medicaid
programs, only the provider who actually furnished the related medical goods and
services may sue for or enforce its rights to reimbursement. Accordingly, in the
event of foreclosure, none of the Trustee, the Master Servicer, the Special
Servicer or a subsequent lessee or operator of the property would generally be
entitled to obtain from federal or state governments any outstanding
reimbursement payments relating to services furnished at the respective
properties prior to such foreclosure.
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY WAREHOUSE AND SELF STORAGE
FACILITIES. Mortgage Loans secured by warehouse and storage facilities may
constitute a material concentration of the Mortgage Loans in a Trust Fund.
Storage facilities are part of a market that contains low barriers to entry.
Increased competition among self storage facilities may reduce income available
to repay Mortgage Loans secured by self storage facility. Furthermore, the
privacy considerations applicable to self storage facilities may increase
environmental risks. See "Risk Factors--Environmental Law Considerations"
herein.
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY INDUSTRIAL & MIXED-USE
FACILITIES. Mortgage Loans secured by industrial and mixed-use facilities may
constitute a material concentration of the Mortgage Loans in a Trust Fund.
Significant factors determining the value of industrial properties are the
quality of tenants, building design and adaptability and the location of the
property. Concerns about the quality of tenants, particularly major tenants, are
similar in both office properties and industrial properties, although industrial
properties are more frequently dependent on a single tenant. In addition,
properties used for many industrial purposes are more prone to environmental
concerns than other property types.
Aspects of building site design and adaptability affect the value of an
industrial property. Site characteristics which are valuable to an industrial
property include clear heights, column spacing, zoning restrictions, number of
bays and bay depths, divisibility, truck turning radius and overall
functionality and accessibility. Location is also important because an
industrial property requires the availability of labor
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sources, proximity to supply sources and customers and accessibility to rail
lines, major roadways and other distribution channels.
Industrial properties may be adversely affected by reduced demand for
industrial space occasioned by a decline in a particular industry segment (for
example, a decline in defense spending), and a particular industrial property
that suited the needs of its original tenant may be difficult to relet to
another tenant or may become functionally obsolete relative to newer properties.
RISKS ASSOCIATED WITH MORTGAGE LOANS SECURED BY HEALTH-CARE RELATED
PROPERTIES. The Mortgaged Properties may include Senior Housing, Assisted
Living Facilities, Skilled Nursing Facilities and Acute Care Facilities (any of
the foregoing, "Health Care-Related Facilities"). "Senior Housing" generally
consists of facilities with respect to which the residents are ambulatory,
handle their own affairs and typically are couples whose children have left the
home and at which the accommodations are usually apartment style. "Assisted
Living Facilities" are typically single or double room occupancy,
dormitory-style housing facilities which provide food service, cleaning and some
personal care and with respect to which the tenants are able to medicate
themselves but may require assistance with certain daily routines. "Skilled
Nursing Facilities" provide services to post trauma and frail residents with
limited mobility who require extensive medical treatment. "Acute Care
Facilities" generally consist of hospital and other facilities providing
short-term, acute medical care services.
Certain types of Health Care-Related Properties, particularly Acute Care
Facilities, Skilled Nursing Facilities and some Assisted Living Facilities,
typically receive a substantial portion of their revenues from government
reimbursement programs, primarily Medicaid and Medicare. Medicaid and Medicare
are subject to statutory and regulatory changes, retroactive rate adjustments,
administrative rulings, policy interpretations, delays by fiscal intermediaries
and government funding restrictions. Moreover, governmental payors have employed
cost-containment measures that limit payments to health care providers, and
there exist various proposals for national health care reform that could further
limit those payments. Accordingly, there can be no assurance that payments under
government reimbursement programs will, in the future, be sufficient to fully
reimburse the cost of caring for program beneficiaries. If such payments are
insufficient, net operating income of those Health Care-Related Facilities that
receive revenues from those sources, and consequently the ability of the related
borrowers to meet their obligations under any Mortgage Loans secured thereby,
could be adversely affected.
Moreover, Health Care-Related Facilities are generally subject to federal
and state laws that relate to the adequacy of medical care, distribution of
pharmaceuticals, rate setting, equipment, personnel, operating policies and
additions to facilities and services. In addition, facilities where such care or
other medical services are provided are subject to periodic inspection by
governmental authorities to determine compliance with various standards
necessary to continued licensing under state law and continued participation in
the Medicaid and Medicare reimbursement programs. Providers of assisted living
services are also subject to state licensing requirements in certain states. The
failure of an operator to maintain or renew any required license or regulatory
approval could prevent it from continuing operations at a Health Care-Related
Facility or, if applicable, bar it from participation in government
reimbursement programs. Furthermore, under applicable federal and state laws and
regulations, Medicare and Medicaid reimbursements are generally not permitted to
be made to any person other than the provider who actually furnished the related
medical goods and services. Accordingly, in the event of foreclosure, none of
the Trustee, the Master Servicer, the Special Servicer or a subsequent lessee or
operator of any Health Care-Related Facility securing a defaulted Mortgage Loan
(a "Health Care-Related Mortgaged Property") would generally be entitled to
obtain from federal or state governments any outstanding reimbursement payments
relating to services furnished at such property prior to such foreclosure. Any
of the aforementioned events may adversely affect the ability of the related
borrowers to meet their Mortgage Loan obligations.
Government regulation applying specifically to Acute Care Facilities,
Skilled Nursing Facilities and certain types of Assisted Living Facilities
includes health planning legislation, enacted by most states, intended, at least
in part, to regulate the supply of nursing beds. The most common method of
control is
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the requirement that a state authority first make a determination of need,
evidenced by its issuance of a Certificate of Need ("CON"), before a long-term
care provider can establish a new facility, add beds to an existing facility or,
in some states, take certain other actions (for example, acquire major medical
equipment, make major capital expenditures, add services, refinance long-term
debt, or transfer ownership of a facility). States also regulate nursing bed
supply in other ways. For example, some states have imposed moratoria on the
licensing of new beds, or on the certification of new Medicaid beds, or have
discouraged the construction of new nursing facilities by limiting Medicaid
reimbursements allocable to the cost of new construction and equipment. In
general, a CON is site specific and operator specific; it cannot be transferred
from one site to another, or to another operator, without the approval of the
appropriate state agency. Accordingly, if a Mortgage Loan secured by a lien on
such a Health Care-Related Mortgaged Property were foreclosed upon, the
purchaser at foreclosure might be required to obtain a new CON or an appropriate
exemption. In addition, compliance by a purchaser with applicable regulations
may in any case require the engagement of a new operator and the issuance of a
new operating license. Upon a foreclosure, a state regulatory agency may be
willing to expedite any necessary review and approval process to avoid
interruption of care to a facility's residents, but there can be no assurance
that any will do so or that any necessary licenses or approvals will be issued.
Further government regulation applicable to Health Care-Related Facilities
is found in the form of federal and state "fraud and abuse" laws that generally
prohibit payment or fee-splitting arrangements between health care providers
that are designed to induce or encourage the referral of patients to, or the
recommendation of, a particular provider for medical products or services.
Violation of these restrictions can result in license revocation, civil and
criminal penalties, and exclusion from participation in Medicare or Medicaid
programs. The state law restrictions in this area vary considerably from state
to state. Moreover, the federal anti-kickback law includes broad language that
potentially could be applied to a wide range of referral arrangements, and
regulations designed to create "safe harbors" under the law provide only limited
guidance. Accordingly, there can be no assurance that such laws will be
interpreted in a manner consistent with the practices of the owners or operators
of the Health Care-Related Mortgaged Properties that are subject to such laws.
The operators of Health Care-Related Facilities are likely to compete on a
loca1 and regional basis with others that operate similar facilities, some of
which competitors may be better capitalized, may offer services not offered by
such operators, or may be owned by non-profit organizations or government
agencies supported by endowments, charitable contributions, tax revenues and
other sources not available to such operators. The successful operation of a
Health Care-Related Facility will generally depend upon the number of competing
facilities in the local market, as well as upon other factors such as its age,
appearance, reputation and management, the types of services it provides and,
where applicable, the quality of care and the cost of that care. The inability
of a Health Care-Related Mortgaged Property to flourish in a competitive market
may increase the likelihood of foreclosure on the related Mortgage Loan,
possibly affecting the yield on one or more classes of the related series of
Offered Certificates.
MANAGEMENT RISKS
Each Mortgaged Property is managed by a property manager (which generally is
an affiliate of the borrower) or by the borrower itself. The successful
operation of a real estate project is largely dependent on the performance and
viability of the management of such project. The property manager is responsible
for responding to changes in the local market, planning and implementing the
rental structure, including establishing levels of rent payments and advising
the borrowers so that maintenance and capital improvements can be carried out in
a timely fashion. There is no assurance regarding the performance of any
operators, leasing agents and/or managers or persons who may become operators
and/or managers upon the expiration or termination of management agreements or
following any default or foreclosure under a Mortgage Loan. In addition,
generally the property managers are operating companies and unlike limited
purpose entities, may not be restricted from incurring debt and other
liabilities in the ordinary course of business or otherwise. There can be no
assurance that the property managers will at all times be in a
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financial condition to continue to fulfill their management responsibilities
under the related management agreements throughout the terms thereof.
RISKS ASSOCIATED WITH CERTAIN MORTGAGE LOANS AND RELATED LEASES
If so described in the related Prospectus Supplement, the borrower under a
Mortgage Loan may be an entity created by the owner or purchaser of the related
Mortgaged Property solely to own or purchase such property, in part to isolate
the property from the debts and liabilities of such owner or purchaser. Unless
otherwise specified, each such Mortgage Loan will represent a nonrecourse
obligation of the related borrower secured by the lien of the related Mortgage
and the related Lease Assignments. In the case of Commercial Properties, the
value of a property that is not itself an operating business generally will be
derived from rental payments under Leases of all or portions of the property.
Whether or not such loans are recourse or nonrecourse obligations, it is not
expected that the borrowers of Mortgage Loans secured by Commercial Properties
will have any significant assets other than the Commercial Properties and any
related Leases, which will be pledged to the Trustee under the related Pooling
Agreement. Therefore, the payment of amounts due on any such Mortgage Loans,
and, consequently, the payment of principal of and interest on the related
Certificates, will depend primarily or solely on rental payments by the Lessees.
Such rental payments will, in turn, depend on continued occupancy by, and/or the
creditworthiness of, such Lessees, which in either case may be adversely
affected by a general economic downturn or an adverse change in their financial
condition. Moreover, to the extent a Commercial Property was designed for the
needs of a specific type of tenant (e.g., a nursing home, hotel or motel), the
value of such property in the event of a default by the Lessee or the early
termination of such Lease may be adversely affected because of difficulty in
re-leasing the property to a suitable substitute lessee or, if re-leasing to
such a substitute is not possible, because of the cost of altering the property
for another more marketable use. As a result, without the benefit of the
Lessee's continued support of the Commercial Property, and absent significant
amortization of the Mortgage Loan, if such loan is foreclosed on and the
Commercial Property liquidated following a Lease default, the net proceeds might
be insufficient to cover the outstanding principal and interest owing on such
Mortgage Loan, thereby increasing the risk that holders of the Certificates will
suffer some loss.
The performance of a Mortgage Loan secured by an income-producing property
leased (pursuant to general commercial-type leases rather than credit- or
bond-type leases) by the Mortgagor to Lessees as well as the liquidation value
of such property may be dependent upon the business operated by such Lessees in
connection with such property, the creditworthiness of such Lessees or both; the
risks associated with such loans may be offset by the number of Lessees or, if
applicable, a diversity of types of business operated by such Lessees.
BALLOON PAYMENTS ON MORTGAGE LOANS; HEIGHTENED RISK OF BORROWER DEFAULT
Certain of the Mortgage Loans included in a Trust Fund may not be fully
amortizing (or may not amortize at all) over their terms to maturity and, thus,
will require substantial principal payments (that is, balloon payments) at their
stated maturity. Mortgage Loans of this type involve a greater degree of risk
than self-amortizing loans because the ability of a borrower to make a balloon
payment typically will depend upon its ability either to fully refinance the
loan or to sell the related Mortgaged Property at a price sufficient to permit
the borrower to make the balloon payment. The ability of a borrower to
accomplish either of these goals will be affected by a number of factors,
including the value of the related Mortgaged Property, the level of available
mortgage rates at the time of sale or refinancing, the borrower's equity in the
related Mortgaged Property, the financial condition and operating history of the
borrower and the related Mortgaged Property, tax laws, rent control laws (with
respect to certain residential properties), Medicaid and Medicare reimbursement
rates (with respect to hospitals and nursing homes), prevailing general economic
conditions and the availability of credit for loans secured by commercial or
multifamily, as the case may be, real properties generally. In addition, a
Master Servicer or a Special Servicer may receive a workout fee based on
receipts from or proceeds of such Mortgage Loans.
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If and to the extent specified in the related Prospectus Supplement, in
order to maximize recoveries on defaulted Mortgage Loans, the Master Servicer or
a Special Servicer will be permitted (within prescribed limits) to extend and
modify Mortgage Loans that are in default or as to which a payment default is
imminent. While a Master Servicer generally will be required to determine that
any such extension or modification is reasonably likely to produce a greater
recovery on a present value basis than liquidation, there can be no assurance
that any such extension or modification will in fact increase the present value
of receipts from or proceeds of the affected Mortgage Loans. See "Yield and
Maturity Considerations--Other Factors Affecting Yield, Weighted Average Life
and Maturity--Balloon Payments; Extenstion of Maturity".
JUNIOR MORTGAGE LOANS
To the extent specified in the related Prospectus Supplement, certain of the
Mortgage Loans may be secured primarily by junior mortgages. In the case of
liquidation, Mortgage Loans secured by junior mortgages are entitled to
satisfaction from proceeds that remain from the sale of the related Mortgaged
Property after the mortgage loans senior to such Mortgage Loans have been
satisfied. If there are not sufficient funds to satisfy such junior Mortgage
Loans and senior mortgage loans, the junior Mortgage Loans would suffer a loss
and, accordingly, one or more classes of Certificates would bear such loss.
Therefore, any risks of deficiencies associated with first Mortgage Loans will
be greater with respect to junior Mortgage Loans. See "--Risks Associated with
Mortgage Loans and Mortgaged Properties".
CREDIT SUPPORT LIMITATIONS--MAY NOT COVER ALL RISKS OR FULL PAYMENT ON
CERTIFICATES
The Prospectus Supplement for the Offered Certificates of each series will
describe any Credit Support provided with respect thereto. Use of Credit Support
will be subject to the conditions and limitations described herein and in the
related Prospectus Supplement. Moreover, such Credit Support may not cover all
potential losses or risks; for example, Credit Support may or may not cover
fraud or negligence by a mortgage loan originator or other parties.
A series of Certificates may include one or more classes of Subordinate
Certificates (which may include Offered Certificates), if so provided in the
related Prospectus Supplement. Although subordination is intended to reduce the
risk to holders of Senior Certificates of delinquent distributions or ultimate
losses, the amount of subordination will be limited and may decline under
certain circumstances. In addition, if principal payments on one or more classes
of Certificates of a series are made in a specified order of priority, any
limits with respect to the aggregate amount of claims under any related Credit
Support may be exhausted before the principal of the lower priority classes of
Certificates of such series has been fully repaid. As a result, the impact of
losses and shortfalls experienced with respect to the Mortgage Assets may fall
primarily upon those classes of Certificates having a lower priority of payment.
Moreover, if a form of Credit Support covers more than one series of
Certificates, holders of Certificates of one series will be subject to the risk
that such Credit Support will be exhausted by the claims of the holders of
Certificates of one or more other series.
The amount of any applicable Credit Support supporting one or more classes
of Offered Certificates, including the subordination of one or more classes of
Certificates, will be determined on the basis of criteria established by each
Rating Agency rating such classes of Certificates based on an assumed level of
defaults, delinquencies and losses on the underlying Mortgage Assets and other
factors. There can, however, be no assurance that the loss experience on the
related Mortgage Assets will not exceed such assumed levels. See "--Limited
Nature of Ratings", "Description of the Certificates" and "Description of Credit
Support".
Regardless of the form of credit enhancement provided, the amount of
coverage will be limited in amount and in most cases will be subject to periodic
reduction in accordance with a schedule or formula. The Master Servicer will
generally be permitted to reduce, terminate or substitute all or a portion of
the credit enhancement for any series of Certificates if the applicable Rating
Agency indicates that the then-
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current rating thereof will not be adversely affected. The rating of any series
of Certificates by any applicable Rating Agency may be lowered following the
initial issuance thereof as a result of the downgrading of the obligations of
any applicable credit support provider, or as a result of losses on the related
Mortgage Assets substantially in excess of the levels contemplated by such
Rating Agency at the time of its initial rating analysis. None of the Depositor,
the Master Servicer or any of their affiliates will have any obligation to
replace or supplement any credit enhancement, or to take any other action to
maintain any rating of any series of Certificates.
ENFORCEABILITY
Mortgages may contain a due-on-sale clause, which permits the lender to
accelerate the maturity of the Mortgage Loan if the borrower sells, transfers or
conveys the related Mortgaged Property or its interest in the Mortgaged
Property. Mortgages may also include a debt-acceleration clause, which permits
the lender to accelerate the debt upon a monetary or non-monetary default of the
borrower. Such clauses are not always enforceable. The courts of all states will
enforce clauses providing for acceleration in the event of a material payment
default. The equity courts of any state, however, may refuse the foreclosure of
a mortgage or deed of trust when an acceleration of the indebtedness would be
inequitable or unjust or the circumstances would render the acceleration
unconscionable.
LEASES AND RENTS SERVING AS SECURITY FOR MORTGAGE LOANS POSE SPECIAL RISKS
The Mortgage Loans included in any Trust Fund typically will be secured by
an assignment of leases and rents pursuant to which the borrower assigns to the
lender its right, title and interest as landlord under the leases of the related
Mortgaged Property, and the income derived therefrom, as further security for
the related Mortgage Loan, while retaining a license to collect rents for so
long as there is no default. If the borrower defaults, the license terminates
and the lender is entitled to collect rents. Some state laws may require that
the lender take possession of the Mortgaged Property and obtain a judicial
appointment of a receiver before becoming entitled to collect the rents. In
addition, if bankruptcy or similar proceedings are commenced by or in respect of
the borrower, the lender's ability to collect the rents may be adversely
affected. See "Certain Legal Aspects of Mortgage Loans and Leases--Leases and
Rents".
DELINQUENT MORTGAGE LOANS
If so provided in the related Prospectus Supplement, the Trust Fund for a
particular series of Certificates may include Mortgage Loans that are delinquent
as of the date they are deposited in the Trust Fund. A Mortgage Loan will be
considered "delinquent" if it is thirty (30) days or more past its most recently
contractual scheduled payment date in payment of all amounts due according to
its terms. In any event, at the time of its creation, the Trust Fund will not
include delinquent loans which by principal amount are more than 20% of the
aggregate principal amount of all Mortgage Loans in the Trust Fund. If so
specified in the related Prospectus Supplement, the servicing of such Mortgage
Loans will be performed by a Special Servicer. Credit Support provided with
respect to a particular series of Certificates may not cover all losses related
to such delinquent Mortgage Loans, and investors should consider the risk that
the inclusion of such Mortgage Loans in the Trust Fund may adversely affect the
rate of defaults and prepayments on the Mortgage Loans in the Trust Fund and the
yield on the Offered Certificates of such series. See "Description of the Trust
Funds--Mortgage Loans-General".
ENVIRONMENTAL LIABILITY MAY AFFECT LIEN ON MORTGAGED PROPERTY AND EXPOSE LENDER
TO COSTS
Under certain laws, contamination of real property may give rise to a lien
on the property to assure the costs of cleanup. In several states, such a lien
has priority over an existing mortgage lien on such property. In addition, under
the laws of some states and under the federal Comprehensive Environmental
Response, Compensation and Liability Act of 1980 ("CERCLA"), a lender may be
liable, as an "owner" or "operator", for costs of addressing releases or
threatened releases of hazardous substances at a property, if
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agents or employees of the lender have become sufficiently involved in the
operations of the borrower, regardless of whether or not the environmental
damage or threat was caused by the borrower. A lender also risks such liability
on foreclosure of the mortgage. In addition, liabilities imposed upon a borrower
by CERCLA or other environmental laws may adversely affect a borrower's ability
to repay a loan. See "Certain Legal Aspects of Mortgage Loans and
Leases--Environmental Considerations". If a Trust Fund includes Mortgage Loans
and the related Prospectus Supplement does not otherwise specify, the related
Pooling Agreement will contain provisions generally to the effect that the
Master Servicer, acting on behalf of the Trust Fund, may not acquire title to a
Mortgaged Property or assume control of its operation unless the Master
Servicer, based upon a report prepared by a person who regularly conducts
environmental site assessments, has made the determination that it is
appropriate to do so, as described under "Description of the Pooling
Agreements--Realization Upon Defaulted Mortgage Loans". These provisions are
designed to reduce substantially the risk of liability for costs associated with
remediation of hazardous substances, but there can be no assurance in a given
case that those risks can be eliminated entirely. Moreover, it is likely that
any recourse against the person preparing the environmental report, and such
person's ability to satisfy a judgment, will be limited.
CREDIT SUPPORT LIMITATIONS--MAY NOT COVER ALL RISKS OR FULL PAYMENT ON
CERTIFICATES
The Prospectus Supplement for the Offered Certificates of each series will
describe any Credit Support provided with respect thereto. Use of Credit Support
will be subject to the conditions and limitations described herein and in the
related Prospectus Supplement. Moreover, such Credit Support may not cover all
potential losses or risks; for example, Credit Support may or may not cover
fraud or negligence by a mortgage loan originator or other parties.
A series of Certificates may include one or more classes of Subordinate
Certificates (which may include Offered Certificates), if so provided in the
related Prospectus Supplement. Although subordination is intended to reduce the
risk to holders of Senior Certificates of delinquent distributions or ultimate
losses, the amount of subordination will be limited and may decline under
certain circumstances. In addition, if principal payments on one or more classes
of Certificates of a series are made in a specified order of priority, any
limits with respect to the aggregate amount of claims under any related Credit
Support may be exhausted before the principal of the lower priority classes of
Certificates of such series has been fully repaid. As a result, the impact of
losses and shortfalls experienced with respect to the Mortgage Assets may fall
primarily upon those classes of Certificates having a lower priority of payment.
Moreover, if a form of Credit Support covers more than one series of
Certificates, holders of Certificates of one series will be subject to the risk
that such Credit Support will be exhausted by the claims of the holders of
Certificates of one or more other series.
The amount of any applicable Credit Support supporting one or more classes
of Offered Certificates, including the subordination of one or more classes of
Certificates, will be determined on the basis of criteria established by each
Rating Agency rating such classes of Certificates based on an assumed level of
defaults, delinquencies and losses on the underlying Mortgage Assets and other
factors. There can be, however, no assurance that the loss experience on the
related Mortgage Assets will not exceed such assumed levels. See "--Limited
Nature of Ratings," "Description of the Certificates" and "Description of Credit
Support."
ERISA CONSIDERATIONS
Generally, ERISA applies to investments made by employee benefit plans and
transactions involving the assets of such plans. Due to the complexity of
regulations that govern such plans, prospective investors that are subject to
ERISA are urged to consult their own counsel regarding consequences under ERISA
of acquisition, ownership and disposition of the Offered Certificates of any
series. See "ERISA Considerations".
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CERTAIN FEDERAL TAX CONSIDERATIONS REGARDING REMIC RESIDUAL CERTIFICATES
Holders of REMIC Residual Certificates will be required to report on their
federal income tax returns as ordinary income their pro rata share of the
taxable income of the REMIC, regardless of the amount or timing of their receipt
of cash payments, as described under "Material Federal Income Tax
Consequences--REMICs". Accordingly, under certain circumstances, holders of
Offered Certificates that constitute REMIC Residual Certificates may have
taxable income and tax liabilities arising from such investment during a taxable
year in excess of the cash received during such period. The requirement that
holders of REMIC Residual Certificates report their pro rata share of the
taxable income and net loss of the REMIC will continue until the Certificate
Balances of all classes of Certificates of the related series have been reduced
to zero, even though holders of REMIC Residual Certificates have received full
payment of their stated interest and principal. A portion (or, in certain
circumstances, all) of such Certificateholder's share of the REMIC taxable
income may be treated as "excess inclusion" income to such holder, which (i)
generally will not be subject to offset by losses from other activities, (ii)
for a tax-exempt holder, will be treated as unrelated business taxable income
and (iii) for a foreign holder, will not qualify for exemption from withholding
tax. Individual holders of REMIC Residual Certificates may be limited in their
ability to deduct servicing fees and other expenses of the REMIC. In addition,
REMIC Residual Certificates are subject to certain restrictions on transfer.
Because of the special tax treatment of REMIC Residual Certificates, the taxable
income arising in a given year on a REMIC Residual Certificate will not be equal
to the taxable income associated with investment in a corporate bond or stripped
instrument having similar cash flow characteristics and pre-tax yield.
Therefore, the after-tax yield on a REMIC Residual Certificate may be
significantly less than that of a corporate bond or stripped instrument having
similar cash flow characteristics.
BOOK-ENTRY REGISTRATION OF CERTIFICATES AFFECTS OWNERSHIP OF CERTIFICATES AND
RECEIPT OF PAYMENTS
If so provided in the related Prospectus Supplement, one or more classes of
the Offered Certificates of any series will be issued as Book-Entry
Certificates. Each class of Book-Entry Certificates will be initially
represented by one or more Certificates registered in the name of a nominee for
DTC. As a result, unless and until corresponding Definitive Certificates are
issued, the Certificate Owners with respect to any class of Book-Entry
Certificates will be able to exercise the rights of Certificateholders only
indirectly through DTC and its participating organizations ("Participants"). In
addition, the access of Certificate Owners to information regarding the
Book-Entry Certificates in which they hold interests may be limited. The means
by which notices and other communications are conveyed by DTC to its
Participants, and directly and indirectly through such Participants to
Certificate Owners, will be governed by arrangements among them, subject to any
statutory or regulatory requirements as may be in effect from time to time.
Furthermore, as described herein, Certificate Owners may experience delays in
the receipt of payments on the Book-Entry Certificates, and the ability of any
Certificate Owner to pledge or otherwise take actions with respect to its
interest in the Book-Entry Certificates may be limited due to the lack of a
physical certificate evidencing such interest. See "Description of the
Certificates--Book-Entry Registration and Definitive Certificates".
DELINQUENT AND NON-PERFORMING MORTGAGE LOANS
If so provided in the related Prospectus Supplement, the Trust Fund for a
particular series of Certificates may include Mortgage Loans that are past due
or are non-performing as of the date they are deposited in the Trust Fund. If so
specified in the related Prospectus Supplement, the servicing of such Mortgage
Loans will be performed by a Special Servicer. Credit Support provided with
respect to a particular series of Certificates may not cover all losses related
to such delinquent or nonperforming Mortgage Loans, and investors should
consider the risk that the inclusion of such Mortgage Loans in the Trust Fund
may adversely affect the rate of defaults and prepayments on the Mortgage Loans
in the Trust Fund and the yield on the Offered Certificates of such series. See
"Description of the Trust Funds-- Mortgage Loans-Leases--General".
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DESCRIPTION OF THE TRUST FUNDS
GENERAL
The primary assets of each Trust Fund will consist of a pool of mortgage
loans collectively, the "Mortgage Loans" secured by liens on, or security
interests in [(i) residential properties consisting of five or more rental or
cooperatively-owned dwelling units (the "Multifamily Properties")] or (ii)
[office buildings], [shopping centers], [retail stores], [hotels or motels],
[nursing homes, hospitals or other health-care related facilities], [mobile home
parks], [warehouse facilities, mini-warehouse facilities or self-storage
facilities], [industrial plants], [mixed use or other types of income-producing
properties] or [unimproved land (the "Commercial Properties")], (iii) mortgage
participations, pass-through certificates or other mortgage-backed securities
such as mortgage-backed securities that are similare to a series of Certificates
("CMBS") that evidence interests in, or that are secured by pledges of, one or
more of various types of multifamily or commercial mortgage loans, or (iv) a
combination of Mortgage Loans and CMBS (collectively, "Mortgage Assets").
[Bracketed property types to be included in order of the magnitude of material
concentration of such property type in the Trust Fund. Property types absent
from the Trust Fund are to be deleted.] Each Trust Fund will be established by
First Union Commercial Mortgage Securities, Inc. (the "Depositor"). Each
Mortgage Asset will be selected by the Depositor for inclusion in a Trust Fund
from among those purchased, either directly or indirectly, from a prior holder
thereof (a "Mortgage Asset Seller"), which prior holder may or may not be the
originator of such Mortgage Loan or the issuer of such CMBS and may be an
affiliate of the Depositor. The Mortgage Assets will not be guaranteed or
insured by the Depositor or any of its affiliates or, unless otherwise provided
in the related Prospectus Supplement, by any governmental agency or
instrumentality or by any other person. The discussion below under the heading
"--Mortgage Loans", unless otherwise noted, applies equally to mortgage loans
underlying any CMBS included in a particular Trust Fund.
MORTGAGE LOANS-LEASES
GENERAL. The Mortgage Loans will be evidenced by promissory notes (the
"Mortgage Notes") secured by mortgages, deeds of trust or similar security
instruments ("mortgages") that create first or junior liens on, or installment
contracts for the sale of, fee simple or leasehold interests in properties (the
"Mortgaged Properties") consisting of (i) residential properties consisting of
five or more rental or cooperatively owned dwelling units in high-rise, mid-rise
or garden apartment buildings or other residential structures ("Multifamily
Properties") or (ii) office buildings, retail stores, hotels or motels, nursing
homes, hospitals or other health care-related facilities, mobile home parks,
warehouse facilities, mini-warehouse facilities, self-storage facilities,
industrial plants, mixed use or other types of income-producing properties or
unimproved land ("Commercial Properties"). The Multifamily Properties may
include mixed commercial and residential structures and may include apartment
buildings owned by private cooperative housing corporations ("Cooperatives"). If
so specified in the related Prospectus Supplement, each Mortgage will create a
first priority mortgage lien on a Mortgaged Property. A Mortgage may create a
lien on a borrower's leasehold estate in a property; however, if so specified in
the related Prospectus Supplement, the term of any such leasehold will exceed
the term of the Mortgage Note by at least two years. Each Mortgage Loan will
have been originated by a person (the "Originator") other than the Depositor.
If so specified in the related Prospectus Supplement, Mortgage Assets for a
series of Certificates may include Mortgage Loans made on the security of real
estate projects under construction. In that case, the related Prospectus
Supplement will describe the procedures and timing for making disbursements from
construction reserve funds as portions of the related real estate project are
completed. In addition, the Mortgage Assets for a particular series of
Certificates may include Mortgage Loans that are delinquent as of the date such
Certificates are issued. In that case, the related Prospectus Supplement will
set forth, as to each such Mortgage Loan, available information as to the period
of such delinquency, any forbearance
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arrangement then in effect, the condition of the related Mortgaged Property and
the ability of the Mortgaged Property to generate income to service the mortgage
debt.
LEASES. To the extent specified in the related Prospectus Supplement, the
Commercial Properties may be leased to Lessees that respectively occupy all or a
portion of such properties. Pursuant to a Lease Assignment, the related borrower
may assign its right, title and interest as lessor under each Lease and the
income derived therefrom to the related mortgagee, while retaining a license to
collect the rents for so long as there is no default. If the borrower defaults,
the license terminates and the mortgagee or its agent is entitled to collect the
rents from the related Lessee or Lessees for application to the monetary
obligations of the borrower. State law may limit or restrict the enforcement of
the Lease Assignments by a mortgagee until it takes possession of the related
Mortgaged Property and/or a receiver is appointed. See "Certain Legal Aspects of
the Mortgage Loans and Leases--Leases and Rents." Alternatively, to the extent
specified in the related Prospectus Supplement, the borrower and the mortgagee
may agree that payments under Leases are to be made directly to the Master
Servicer or the Special Servicer.
To the extent described in the related Prospectus Supplement, the Leases,
which may include "bond-type" or "credit-type" leases, may require the Lessees
to pay rent that is sufficient in the aggregate to cover all scheduled payments
of principal and interest on the related Mortgage Loans and, in certain cases,
their pro rata share of the operating expenses, insurance premiums and real
estate taxes associated with the Mortgaged Properties. A "bond-type" lease is a
lease between a lessor and a lessee for a specified period of time with
specified rent payments that are at least sufficient to repay the related
note(s). A bond-type lease requires the lessee to perform all obligations
related to the leased premises; also, no matter what occurs with regard to the
leased premises, the lessee is obligated to continue to pay its rent. A "credit-
type" lease is a lease between a lessor and a lessee for a specified period of
time with specified rent payments at least sufficient to repay the related
note(s). A credit-type lease requires the lessee to perform most of the
obligations related to the leased premises, excluding only a few landlord duties
which remain the responsibility of the borrower/lessor. Certain of the Leases
(including credit-type leases) may require the borrower to bear costs associated
with structural repairs and/or the maintenance of the exterior or other portions
of the Mortgaged Property or provide for certain limits on the aggregate amount
of operating expenses, insurance premiums, taxes and other expenses that the
Lessees are required to pay. If so specified in the related Prospectus
Supplement, under certain circumstances the Lessees may be permitted to set off
their rental obligations against the obligations of the borrower under the
Leases. In those cases where payments under the Leases (net of any operating
expenses payable by the borrowers) are insufficient to pay all of the scheduled
principal and interest on the related Mortgage Loans, the borrowers must rely on
other income or sources generated by the related Mortgaged Property to make
payments on the related Mortgage Loan. To the extent specified in the related
Prospectus Supplement, some Commercial Properties may be leased entirely to one
Lessee. This would generally be the case in bond-type leases and credit-type
leases. In such cases, absent the availability of other funds, the borrower must
rely entirely on rent paid by such Lessee in order for the borrower to pay all
of the scheduled principal and interest on the related Mortgage Loan. To the
extent specified in the related Prospectus Supplement, certain of the Leases
(not including bond-type leases) may expire prior to the stated maturity of the
related Mortgage Loan. In such cases, upon expiration of the Leases the Borrower
will have to look to alternative sources of income, including rent payment by
any new Lessees or proceeds from the sale or refinancing of the Mortgaged
Property, to cover the payments of principal and interest due on such Mortgage
Loans unless the Lease is renewed. As specified in the related Prospectus
Supplement, certain of the Leases may provide that upon the occurrence of a
casualty affecting a Mortgaged Property, the Lessee will have the right to
terminate its Lease, unless the borrower, as lessor, is able to cause the
Mortgaged Property to be restored within a specified period of time. Certain
Leases may provide that it is the lessor's responsibility, while other Leases
provide that it is the Lessee's responsibility, to restore the Mortgaged
Property after a casualty to its original condition. Certain Leases may provide
a right of termination to the related Lessee if a taking of a material or
specified percentage of the leased space in the Mortgage Property occurs, or if
the ingress or egress to the leased space has been materially impaired.
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DEFAULT AND LOSS CONSIDERATIONS WITH RESPECT TO THE MORTGAGE
LOANS. Mortgage loans secured by liens on income-producing properties are
substantially different from loans made on the security of owner-occupied
single-family homes. The repayment of a loan secured by a lien on an income
producing property is typically dependent upon the successful operation of such
property (that is, its ability to generate income). Moreover, some or all of the
Mortgage Loans included in a particular Trust Fund may be non-recourse loans,
which means that, absent special facts, recourse in the case of default will be
limited to the Mortgaged Property and such other assets, if any, that were
pledged to secure repayment of the Mortgage Loan.
Lenders typically look to the Debt Service Coverage Ratio of a loan secured
by income-producing property as an important measure of the risk of default on
such a loan. As more fully set forth in the related Prospectus Supplement, the
"Debt Service Coverage Ratio" of a Mortgage Loan at any given time is the ratio
of (i) the Net Operating Income of the related Mortgaged Property for a
twelve-month period to (ii) the annualized scheduled payments on the Mortgage
Loan and on any other loan that is secured by a lien on the Mortgaged Property
prior to the lien of the related Mortgage. As more fully set forth in the
related Prospectus Supplement, "Net Operating Income" means, for any given
period, the total operating revenues derived from a Mortgaged Property during
such period, minus the total operating expenses incurred in respect of such
Mortgaged Property during such period other than (i) non-cash items such as
depreciation and amortization, (ii) capital expenditures and (iii) debt service
on loans (including the related Mortgage Loan) secured by liens on the Mortgaged
Property. The Net Operating Income of a Mortgaged Property will fluctuate over
time and may or may not be sufficient to cover debt service on the related
Mortgage Loan at any given time. An insufficiency of Net Operating Income can be
compounded or solely caused by an ARM Loan, a Mortgage Loan that carries an
adjustable Mortgage Rate. As the primary source of the operating revenues of a
non-owner occupied income-producing property, rental income (and maintenance
payments from tenant-stockholders of a Cooperative) may be affected by the
condition of the applicable real estate market and/or area economy. In addition,
properties typically leased, occupied or used on a short-term basis, such as
certain health care-related facilities, hotels and motels, and miniwarehouse and
self-storage facilities, tend to be affected more rapidly by changes in market
or business conditions than do properties typically leased for longer periods,
such as warehouses, retail stores, office buildings and industrial plants.
Commercial Properties may be owner-occupied or leased to a single tenant. Thus,
the Net Operating Income of such a Mortgaged Property may depend substantially
on the financial condition of the borrower or the single tenant, and Mortgage
Loans secured by liens on such properties may pose greater risks than loans
secured by liens on Multifamily Properties or on multitenant Commercial
Properties.
Increases in operating expenses due to the general economic climate or
economic conditions in a locality or industry segment, such as increases in
interest rates, real estate tax rates, energy costs, labor costs and other
operating expenses, and/or changes in governmental rules, regulations and fiscal
policies may also affect the risk of default on a Mortgage Loan. As may be
further described in the related Prospectus Supplement, in some cases leases of
Mortgaged Properties may provide that the Lessee, rather than the
borrower/landlord, is responsible for payment of operating expenses. However,
the existence of such "net of expense" provisions will result in stable Net
Operating Income to the borrower/landlord only to the extent that the Lessee is
able to absorb operating expense increases while continuing to make rent
payments. See "--Leases" above.
While the duration of leases and the existence of any "net of expense"
provisions are often viewed as the primary considerations in evaluating the
credit risk of mortgage loans secured by certain income-producing properties,
such risk may be affected equally or to a greater extent by changes in
government regulation of the operator of the property. Examples of the latter
include mortgage loans secured by health care-related facilities, the income
from which and the operating expenses of which are subject to state and/ or
federal regulations, such as Medicare and Medicaid, and multifamily properties
and mobile home parks, which may be subject to state or local rent control
regulation and, in certain cases, restrictions on changes
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in use of the property. Low- and moderate-income housing in particular may be
subject to legal limitations and regulations but, because of such regulations,
may also be less sensitive to fluctuations in market rents generally.
Lenders also look to the Loan-to-Value Ratio of a mortgage loan as a measure
of risk of loss if a property must be liquidated following a default. As more
fully set forth in the related Prospectus Supplement, the "Loan-to-Value Ratio"
of a Mortgage Loan at any given time is the ratio (expressed as a percentage) of
(i) the then outstanding principal balance of the Mortgage Loan and the
outstanding principal balance of any loan secured by a lien on the related
Mortgaged Property prior to the lien of the related Mortgage, to (ii) the Value
of such Mortgaged Property. The "Value" of a Mortgaged Property, is generally
its fair market value determined in an appraisal obtained by the originator at
the origination of such loan. The lower the Loan-to-Value Ratio, the greater the
percentage of the borrower's equity in a Mortgaged Property, and thus the
greater the cushion provided to the lender against loss on liquidation following
a default.
Loan-to-Value Ratios will not necessarily constitute an accurate measure of
the risk of liquidation loss in a pool of Mortgage Loans. For example, the value
of a Mortgaged Property as of the date of initial issuance of the related series
of Certificates may be less than the Value determined at loan origination, and
will likely continue to fluctuate from time to time based upon changes in
economic conditions and the real estate market. Moreover, even when current, an
appraisal is not necessarily a reliable estimate of value. Appraised values of
income-producing properties are generally based on the market comparison method
(recent resale value of comparable properties at the date of the appraisal), the
cost replacement method (the cost of replacing the property at such date), the
income capitalization method (a projection of value based upon the property's
projected net cash flow), or upon a selection from or interpolation of the
values derived from such methods. Each of these appraisal methods can present
analytical difficulties. It is often difficult to find truly comparable
properties that have recently been sold; the replacement cost of a property may
have little to do with its current market value; and income capitalization is
inherently based on inexact projections of income and expense and the selection
of an appropriate capitalization rate. Where more than one of these appraisal
methods are used and provide significantly different results, an accurate
determination of value and, correspondingly, a reliable analysis of default and
loss risks, is even more difficult.
While the Depositor believes that the foregoing considerations are important
factors that generally distinguish loans secured by liens on income-producing
real estate from single-family mortgage loans, there is no assurance that all of
such factors will in fact have been prudently considered by the Originators of
the Mortgage Loans, or that, for a particular Mortgage Loan, they are complete
or relevant. See "Risk Factors--Risks Associated with Mortgage Loans and
Mortgaged Properties" and "--Balloon Payments; Borrower Default".
PAYMENT PROVISIONS OF THE MORTGAGE LOANS. If so specified in the related
Prospectus Supplement, all of the Mortgage Loans will have had original terms to
maturity of not more than 40 years and will provide for scheduled payments of
principal, interest or both, to be made on specified dates that occur monthly or
quarterly or at such other interval as is specified in the Prospectus
Supplement. A Mortgage Loan (i) may provide for no accrual of interest or for
accrual of interest thereon at an interest rate (a "Mortgage Rate") that is
fixed over its term or that adjusts from time to time, or that may be converted
at the borrower's election from an adjustable to a fixed Mortgage Rate, or from
a fixed to an adjustable Mortgage Rate, (ii) may provide for the formula, index
or other method by which the Mortgage Rate will be calculated, (iii) may provide
for level payments to maturity or for payments that adjust from time to time to
accommodate changes in the Mortgage Rate or to reflect the occurrence of certain
events, and may permit negative amortization or accelerated amortization, (iv)
may be fully amortizing over its term to maturity, or may provide for little or
no amortization over its term and thus require a balloon payment on its stated
maturity date, and (v) may contain a prohibition on prepayment (the period of
such prohibition, a "Lockout Period") or require payment of a premium or a yield
maintenance penalty (a "Prepayment
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Premium") in connection with a prepayment, in each case as described in the
related Prospectus Supplement. A Mortgage Loan may also contain a provision that
entitles the lender to a share of profits realized from the operation or
disposition of the Mortgaged Property (an "Equity Participation"), as described
in the related Prospectus Supplement. If holders of any class or classes of
Offered Certificates of a series will be entitled to all or a portion of an
Equity Participation, the related Prospectus Supplement will describe the Equity
Participation and the method or methods by which distributions in respect
thereof will be made to such holders.
MORTGAGE LOAN INFORMATION IN PROSPECTUS SUPPLEMENTS. Each Prospectus
Supplement will contain certain information pertaining to the Mortgage Loans
which will generally be current as of a date specified in the related Prospectus
Supplement and which, to the extent then applicable and specifically known to
the Depositor, will include the following: (i) the aggregate outstanding
principal balance and the largest, smallest and average outstanding principal
balance of the Mortgage Loans as of the applicable Cut-off Date, (ii) the type
or types of property that provide security for repayment of the Mortgage Loans,
(iii) the original and remaining terms to maturity of the Mortgage Loans, and
the seasoning of the Mortgage Loans, (iv) the earliest and latest origination
date and maturity date and weighted average original and remaining terms to
maturity of the Mortgage Loans, (v) the original Loan-to-Value Ratios of the
Mortgage Loans, (vi) the Mortgage Rates or range of Mortgage Rates and the
weighted average Mortgage Rate carried by the Mortgage Loans, (vii) the
geographic distribution of the Mortgaged Properties on a state-by-state basis,
(viii) information with respect to the prepayment provisions, if any, of the
Mortgage Loans, (ix) with respect to Mortgage Loans with adjustable Mortgage
Rates ("ARM Loans"), the index or indices upon which such adjustments are based,
the adjustment dates, the range of gross margins and the weighted average gross
margin, and any limits on Mortgage Rate adjustments at the time of any
adjustment and over the life of the ARM Loan, (x) Debt Service Coverage Ratios
either at origination or as of a more recent date (or both) and (xi) information
regarding the payment characteristics of the Mortgage Loans, including without
limitation balloon payment and other amortization provisions. In appropriate
cases, the related Prospectus Supplement will also contain certain information
available to the Depositor that pertains to the provisions of leases and the
nature of tenants of the Mortgaged Properties. If the Depositor is unable to
tabulate the specific information described above at the time Offered
Certificates of a series are initially offered, more general information of the
nature described above will be provided in the related Prospectus Supplement,
and specific information will be set forth in a report which will be available
to purchasers of those Certificates at or before the initial issuance thereof
and will be filed as part of a Current Report on Form 8-K with the Commission
within 15 days following such issuance.
CMBS
CMBS may include (i) private (that is, not guaranteed or insured by the
United States or any agency or instrumentality thereof) mortgage participations,
mortgage pass-through certificates or other mortgage-backed securities such as
mortgage-backed securities that are similar to a series of Certificates or (ii)
certificates insured or guaranteed by FHLMC, FNMA, GNMA or FAMC, provided that
each CMBS will evidence an interest in, or will be secured by a pledge of,
mortgage loans that conform to the descriptions of the Mortgage Loans contained
herein.
Any CMBS will have been issued pursuant to a participation and servicing
agreement, a pooling and servicing agreement, an indenture or similar agreement
(a "CMBS Agreement"). The issuer (the "CMBS Issuer") of the CMBS and/or the
servicer (the "CMBS Servicer") of the underlying mortgage loans will have
entered into the CMBS Agreement, generally with a trustee (the "CMBS Trustee")
or, in the alternative, with the original purchaser or purchasers of the CMBS.
The CMBS may have been issued in one or more classes with characteristics
similar to the classes of Certificates described herein. Distributions in
respect of the CMBS will be made by the CMBS Servicer or the CMBS Trustee on the
dates specified in the related Prospectus Supplement. The CMBS Issuer or the
CMBS Servicer or another person specified in the related Prospectus Supplement
may have the right or
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obligation to repurchase or substitute assets underlying the CMBS after a
certain date or under other circumstances specified in the related Prospectus
Supplement.
Reserve funds, subordination or other credit support similar to that
described for the Certificates under "Description of Credit Support" may have
been provided with respect to the CMBS. The type, characteristics and amount of
such credit support, if any, will be a function of the characteristics of the
underlying mortgage loans and other factors and generally will have been
established on the basis of the requirements of any Rating Agency that may have
assigned a rating to the CMBS, or by the initial purchasers of the CMBS.
The Prospectus Supplement for a series of Certificates that evidence
interests in CMBS will specify, to the extent available and deemed material, (i)
the aggregate approximate initial and outstanding principal amount and type of
the CMBS to be included in the Trust Fund, (ii) the original and remaining term
to stated maturity of the CMBS, if applicable, (iii) the pass-through or bond
rate of the CMBS or the formula for determining such rates, (iv) the payment
characteristics of the CMBS, (v) the CMBS Issuer, CMBS Servicer and CMBS
Trustee, as applicable, (vi) a description of the credit support, if any, (vii)
the circumstances under which the related underlying mortgage loans, or the CMBS
themselves, may be purchased prior to their maturity, (viii) the terms on which
mortgage loans may be substituted for those originally underlying the CMBS, (ix)
the servicing fees payable under the CMBS Agreement, (x) the type of information
in respect of the underlying mortgage loans described under "--Mortgage Loans--
Leases--Mortgage Loan Information in Prospectus Supplements" and (xi) the
characteristics of any cash flow agreements that relate to the CMBS.
To the extent required under the securities laws, CMBS included among the
assets of a Trust Fund will (i) either have been registered under the Securities
Act of 1933, as amended, or be eligible for resale under Rule 144(k) thereunder
and (ii) have been acquired in a bona fide secondary market transaction and not
from the issuer or an affiliate.
CERTIFICATE ACCOUNTS
Each Trust Fund will include one or more accounts (collectively, the
"Certificate Account") established and maintained on behalf of the
Certificateholders into which the person or persons designated in the related
Prospectus Supplement will, to the extent described herein and in such
Prospectus Supplement, deposit all payments and collections received or advanced
with respect to the Mortgage Assets and other assets in the Trust Fund. A
Certificate Account may be maintained as an interest bearing or a non-interest
bearing account, and funds held therein may be held as cash or invested in
certain short-term, investment grade obligations, in each case as described in
the related Prospectus Supplement.
CREDIT SUPPORT
If so provided in the related Prospectus Supplement, partial or full
protection against certain defaults and losses on the Mortgage Assets in the
related Trust Fund may be provided to one or more classes of Certificates in the
related series in the form of subordination of one or more other classes of
Certificates in such series or by one or more other types of credit support,
such as overcollateralization, a letter of credit, insurance policy, guarantee
or reserve fund, or by a combination thereof (any such coverage with respect to
the Certificates of any series, "Credit Support"). The amount and types of
Credit Support, the identity of the entity providing it (if applicable) and
related information with respect to each type of Credit Support, if any, will be
set forth in the Prospectus Supplement for the Offered Certificates of each
series. The Prospectus Supplement for any series of Certificates evidencing an
interest in a Trust Fund that includes CMBS will describe in the same fashion
any similar forms of credit support that are provided by or with respect to, or
are included as part of the trust fund evidenced by or providing security for,
such CMBS to the extent information is available and deemed material. The type,
characteristic and amount of Credit Support will be determined based on the
characteristics of the Mortgage Assets and other factors and will
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be established, in part, on the basis of requirements of each Rating Agency
rating the Certificates of such series. If so specified in the related
Prospectus Supplement, any such Credit Support may apply only in the event of
certain types of losses or delinquencies and the protection against losses or
delinquencies provided by such Credit Support will be limited. See "Risk
Factors--Credit Support Limitations" and "Description of Credit Support".
CASH FLOW AGREEMENTS
If so provided in the related Prospectus Supplement, the Trust Fund may
include guaranteed investment contracts pursuant to which moneys held in the
funds and accounts established for the related series will be invested at a
specified rate. The Trust Fund may also include interest rate exchange
agreements, interest rate cap or floor agreements, currency exchange agreements
or similar agreements designed to reduce the effects of interest rate or
currency exchange rate fluctuations on the Mortgage Assets on one or more
classes of Certificates. The principal terms of any such guaranteed investment
contract or other agreement (any such agreement, a "Cash Flow Agreement"), and
the identity of the Cash Flow Agreement obligor, will be described in the
related Prospectus Supplement. The Prospectus Supplement for any series of
Certificates evidencing an interest in a Trust Fund that includes CMBS will
describe in the same fashion any cash flow agreements that are included as part
of the trust fund evidenced by or providing security for such CMBS to the extent
information is available and deemed material.
PRE-FUNDING
If so provided in the related Prospectus Supplement, a Trust Fund may
include amounts on deposit in a separate account (the "Pre-Funding Account")
which amounts will not exceed 25% of the pool balance of the Trust Fund as of
the Cut-off Date. Amounts on deposit in the Pre-Funding Account may be used by
the Trust Fund to acquire additional Mortgage Assets, which additional Mortgage
Assets will be selected using criteria that is substantially similar to the
criteria used to select the Mortgage Assets included in the Trust Fund on the
Closing Date. The Trust Fund may acquire such additional Mortgage Assets for a
period of time of not more than 120 days after the Closing Date (the
"Pre-Funding Period") as specified in the related Prospectus Supplement. Amounts
on deposit in the Pre-Funding Account after the end of the Pre-Funding Period
will be distributed to Certificateholders or such other person as set forth in
the related Prospectus Supplement. If so provided in the related Prospectus
Supplement, the Trust Fund may include amounts on deposit in a separate account
(the "Capitalized Interest Account"). Amounts on deposit in the Capitalized
Interest Account may be used to supplement investment earnings, if any, of
amounts on deposit in the Pre-Funding Account, supplement interest collections
of the Trust Fund, or such other purpose as specified in the related Prospectus
Supplement. As set forth in a related Prospectus Supplement, amounts on deposit
in the Capitalized Interest Account and Pre-Funding Account will be held in cash
or invested in short-term investment grade obligations. Any amounts on deposit
in the Capitalized Interest Account will be released after the end of the
Pre-Funding Period as specified in the related Prospectus Supplement. See "Risk
Factors--Effects of Pre-Funding and Acquisition of Additional Mortgage Assets".
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YIELD AND MATURITY CONSIDERATIONS
GENERAL
The yield on any Offered Certificate will depend on the price paid by the
Certificateholder, the Pass-Through Rate of the Certificate and the amount and
timing of distributions on the Certificate. See "Risk Factors--Prepayments;
Average Life of Certificates; Yields". The following discussion contemplates a
Trust Fund that consists solely of Mortgage Loans. While the characteristics and
behavior of mortgage loans underlying CMBS can generally be expected to have the
same effect on the yield to maturity and/or weighted average life of a Class of
Certificates as will the characteristics and behavior of comparable Mortgage
Loans, the effect may differ due to the payment characteristics of the CMBS. If
a Trust Fund includes CMBS, the related Prospectus Supplement will discuss the
effect that the CMBS payment characteristics may have on the yield to maturity
and weighted average lives of the Offered Certificates offered thereby.
PASS-THROUGH RATE
The Certificates of any class within a series may have a fixed, variable or
adjustable Pass-Through Rate, which may or may not be based upon the interest
rates borne by the Mortgage Loans in the related Trust Fund. The Prospectus
Supplement with respect to the Offered Certificates of any series will specify
the Pass-Through Rate for each class of such Certificates or, in the case of a
class of Offered Certificates with a variable or adjustable Pass-Through Rate,
the method of determining the Pass-Through Rate; the effect, if any, of the
prepayment of any Mortgage Loan on the Pass-Through Rate of one or more classes
of Offered Certificates; and whether the distributions of interest on the
Offered Certificates of any class will be dependent, in whole or in part, on the
performance of any obligor under a Cash Flow Agreement.
PAYMENT DELAYS
With respect to any series of Certificates, a period of time will elapse
between the date upon which payments on the Mortgage Loans in the related Trust
Fund are due and the Distribution Date on which such payments are passed through
to Certificateholders. That delay will effectively reduce the yield that would
otherwise be produced if payments on such Mortgage Loans were distributed to
Certificateholders on or near the date they were due.
CERTAIN SHORTFALLS IN COLLECTIONS OF INTEREST
When a principal prepayment in full or in part is made on a Mortgage Loan,
the borrower is generally charged interest only for the period from the Due Date
of the preceding scheduled payment up to the date of such prepayment, instead of
for the full accrual period, that is, the period from the Due Date of the
preceding scheduled payment up to the Due Date for the next scheduled payment.
However, interest accrued on any series of Certificates and distributable
thereon on any Distribution Date will generally correspond to interest accrued
on the principal balance of Mortgage Loans for their respective full accrual
periods. Consequently, if a prepayment on any Mortgage Loan is distributable to
Certificateholders on a particular Distribution Date, but such prepayment is not
accompanied by interest thereon for the full accrual period, the interest
charged to the borrower (net of servicing and administrative fees) may be less
(such shortfall, a "Prepayment Interest Shortfall") than the corresponding
amount of interest accrued and otherwise payable on the Certificates of the
related series. If and to the extent that any such shortfall is allocated to a
class of Offered Certificates, the yield thereon will be adversely affected. The
Prospectus Supplement for a series of Certificates will describe the manner in
which any such shortfalls will be allocated among the classes of such
Certificates. If so specified in the related Prospectus Supplement, the Master
Servicer will be required to apply some or all of its servicing compensation for
the corresponding period to offset the amount of any such shortfalls. The
related Prospectus Supplement will also describe
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any other amounts available to offset such shortfalls. See "Description of the
Pooling Agreements-- Servicing Compensation and Payment of Expenses".
YIELD AND PREPAYMENT CONSIDERATIONS
A Certificate's yield to maturity will be affected by the rate of principal
payments on the Mortgage Loans in the related Trust Fund and the allocation
thereof to reduce the principal balance (or Notional Amount, if applicable) of
such Certificate. The rate of principal payments on the Mortgage Loans will in
turn be affected by the amortization schedules thereof (which, in the case of
ARM Loans, will change periodically to accommodate adjustments to their Mortgage
Rates), the dates on which any balloon payments are due, and the rate of
principal prepayments thereon (including for this purpose, prepayments resulting
from liquidations of Mortgage Loans due to defaults, casualties or condemnations
affecting the Mortgaged Properties, or purchases of Mortgage Loans out of the
Trust Fund). Because the rate of principal prepayments on the Mortgage Loans in
any Trust Fund will depend on future events and a variety of factors (as
discussed more fully below), it is impossible to predict with assurance.
The extent to which the yield to maturity of a class of Offered Certificates
of any series may vary from the anticipated yield will depend upon the degree to
which they are purchased at a discount or premium and when, and to what degree,
payments of principal on the Mortgage Loans in the related Trust Fund are in
turn distributed on such Certificates (or, in the case of a class of Stripped
Interest Certificates, result in the reduction of the Notional Amount thereof).
Further, an investor should consider, in the case of any Offered Certificate
purchased at a discount, the risk that a slower than anticipated rate of
principal payments on the Mortgage Loans in the related Trust Fund could result
in an actual yield to such investor that is lower than the anticipated yield
and, in the case of any Offered Certificate purchased at a premium, the risk
that a faster than anticipated rate of principal payments could result in an
actual yield to such investor that is lower than the anticipated yield. In
general, the earlier a prepayment of principal on the Mortgage Loans is
distributed on an Offered Certificate purchased at a discount or premium (or, if
applicable, is allocated in reduction of the Notional Amount thereof), the
greater will be the effect on the investor's yield to maturity. As a result, the
effect on such investor's yield of principal payments (to the extent
distributable in reduction of the principal balance or Notional Amount of such
investor's Offered Certificates) occurring at a rate higher (or lower) than the
rate anticipated by the investor during any particular period would not be fully
offset by a subsequent like reduction (or increase) in the rate of principal
payments.
A class of Certificates, including a class of Offered Certificates, may
provide that on any Distribution Date the holders of such Certificates are
entitled to a pro rata share of the prepayments (including prepayments
occasioned by defaults) on the Mortgage Loans in the related Trust Fund that are
distributable on such date, to a disproportionately large share (which, in some
cases, may be all) of such prepayments, or to a disproportionately small share
(which, in some cases, may be none) of such prepayments. As and to the extent
described in the related Prospectus Supplement, the respective entitlements of
the various classes of Certificateholders of any series to receive payments
(and, in particular, prepayments) of principal of the Mortgage Loans in the
related Trust Fund may vary based on the occurrence of certain events (e.g., the
retirement of one or more classes of Certificates of such series) or subject to
certain contingencies (e.g., prepayment and default rates with respect to such
Mortgage Loans).
In general, the Notional Amount of a class of Stripped Interest Certificates
will either (i) be based on the principal balances of some or all of the
Mortgage Assets in the related Trust Fund or (ii) equal the Certificate Balances
of one or more of the other classes of Certificates of the same series.
Accordingly, the yield on such Stripped Interest Certificates will be directly
related to the amortization of such Mortgage Assets or such classes of
Certificates, as the case may be. Thus, if a class of Certificates of any series
consists of Stripped Interest Certificates or Stripped Principal Certificates, a
lower than anticipated rate of principal prepayments on the Mortgage Loans in
the related Trust Fund will negatively affect the yield to
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investors in Stripped Principal Certificates, and a higher than anticipated rate
of principal prepayments on such Mortgage Loans will negatively affect the yield
to investors in Stripped Interest Certificates.
The Depositor is not aware of any relevant publicly available or
authoritative statistics with respect to the historical prepayment experience of
a large group of multifamily or commercial mortgage loans. However, the extent
of prepayments of principal of the Mortgage Loans in any Trust Fund may be
affected by a number of factors, including, without limitation, the availability
of mortgage credit, the relative economic vitality of the area in which the
Mortgaged Properties are located, the quality of management of the Mortgaged
Properties, the servicing of the Mortgage Loans, possible changes in tax laws
and other opportunities for investment. In addition, the rate of principal
payments on the Mortgage Loans in any Trust Fund may be affected by the
existence of Lockout Periods and requirements that principal prepayments be
accompanied by Prepayment Premiums, and by the extent to which such provisions
may be practicably enforced.
The rate of prepayment on a pool of mortgage loans is also affected by
prevailing market interest rates for mortgage loans of a comparable type, term
and risk level. When the prevailing market interest rate is below a mortgage
coupon, a borrower may have an increased incentive to refinance its mortgage
loan. In addition, as prevailing market interest rates decline, even borrowers
with ARM Loans that have experienced a corresponding interest rate decline may
have an increased incentive to refinance for purposes of either (i) converting
to a fixed rate loan and thereby "locking in" such rate or (ii) taking advantage
of the initial "teaser rate" (a mortgage interest rate below what it would
otherwise be if the applicable index and gross margin were applied) on another
adjustable rate mortgage loan.
Depending on prevailing market interest rates, the outlook for market
interest rates and economic conditions generally, some borrowers may sell
Mortgaged Properties in order to realize their equity therein, to meet cash flow
needs or to make other investments. In addition, some borrowers may be motivated
by federal and state tax laws (which are subject to change) to sell Mortgaged
Properties prior to the exhaustion of tax depreciation benefits. The Depositor
will make no representation as to the particular factors that will affect the
prepayment of the Mortgage Loans in any Trust Fund, as to the relative
importance of such factors, as to the percentage of the principal balance of
such Mortgage Loans that will be paid as of any date or as to the overall rate
of prepayment on such Mortgage Loans.
WEIGHTED AVERAGE LIFE AND MATURITY
The rate at which principal payments are received on the Mortgage Loans in
any Trust Fund will affect the ultimate maturity and the weighted average life
of one or more classes of the Certificates of such series. Weighted average life
refers to the average amount of time that will elapse from the date of issuance
of an instrument until each dollar of the principal amount of such instrument is
repaid to the investor.
The weighted average life and maturity of a class of Certificates of any
series will be influenced by the rate at which principal on the related Mortgage
Loans, whether in the form of scheduled amortization or prepayments (for this
purpose, the term "prepayment" includes voluntary prepayments, liquidations due
to default and purchases of Mortgage Loans out of the related Trust Fund), is
paid to such class. Prepayment rates on loans are commonly measured relative to
a prepayment standard or model, such as the Constant Prepayment Rate ("CPR")
prepayment model or the Standard Prepayment Assumption ("SPA") prepayment model.
CPR represents an assumed constant rate of prepayment each month (expressed as
an annual percentage) relative to the then outstanding principal balance of a
pool of loans for the life of such loans. SPA represents an assumed variable
rate of prepayment each month (expressed as an annual percentage) relative to
the then outstanding principal balance of a pool of loans, with different
prepayment assumptions often expressed as percentages of SPA. For example, a
prepayment assumption of 100% of SPA assumes prepayment rates of 0.2% per annum
of the then outstanding principal balance of such loans in the first month of
the life of the loans and an additional 0.2% per annum in each month thereafter
until
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the 30th month. Beginning in the 30th month, and in each month thereafter during
the life of the loans, 100% of SPA assumes a constant prepayment rate of 6% per
annum each month.
Neither CPR nor SPA nor any other prepayment model or assumption purports to
be a historical description of prepayment experience or a prediction of the
anticipated rate of prepayment of any particular pool of loans. Moreover, the
CPR and SPA models were developed based upon historical prepayment experience
for single-family loans. Thus, it is unlikely that the prepayment experience of
the Mortgage Loans included in any Trust Fund will conform to any particular
level of CPR or SPA.
The Prospectus Supplement with respect to each series of Certificates will
contain tables, if applicable, setting forth the projected weighted average life
of each class of Offered Certificates of such series and the percentage of the
initial Certificate Balance of each such class that would be outstanding on
specified Distribution Dates based on the assumptions stated in such Prospectus
Supplement, including assumptions that prepayments on the related Mortgage Loans
are made at rates corresponding to various percentages of CPR or SPA, or at such
other rates specified in such Prospectus Supplement. Such tables and assumptions
will illustrate the sensitivity of the weighted average lives of the
Certificates to various assumed prepayment rates and will not be intended to
predict, or to provide information that will enable investors to predict, the
actual weighted average lives of the Certificates.
CONTROLLED AMORTIZATION CLASSES AND COMPANION CLASSES
A series of Certificates may include one or more Controlled Amortization
Classes that are designed to provide increased protection against prepayment
risk by transferring that risk to one or more Companion Classes. If so specified
in the related Prospectus Supplement, each Controlled Amortization Class will
either be a Planned Amortization Class (a "PAC") or a Targeted Amortization
Class (a "TAC"). In general, distributions of principal on a PAC are made in
accordance with a specified amortization schedule so long as prepayments on the
underlying Mortgage Loans occur within a specified range of constant prepayment
rates and, as described below, so long as one or more Companion Classes remain
to absorb excess cash flows and make up for shortfalls. For example, if the rate
of prepayments is significantly higher than expected, the excess prepayments may
retire the Companion Classes much earlier than expected, thus leaving the PAC
without further prepayment protection. A TAC is similar to a PAC, but a TAC
structure generally does not draw on Companion Classes to make up cash flow
shortfalls, and will generally not provide protection to the TAC against the
risk that prepayments occur more slowly than expected.
In general, the reduction of prepayment risk afforded to a Controlled
Amortization Class comes at the expense of one or more Companion Classes of the
same series (any of which may also be a class of Offered Certificates) which
absorb a disproportionate share of the overall prepayment risk of a given
structure. As more particularly described in the related Prospectus Supplement,
the holders of a Companion Class will receive a disproportionately large share
of prepayments when the rate of prepayment exceeds the rate assumed in
structuring the Controlled Amortization Class, and (in the case of a Companion
Class that supports a PAC) a disproportionately small share of prepayments (or
no prepayments) when the rate of prepayment falls below that assumed rate. Thus,
as and to the extent described in the related Prospectus Supplement, a Companion
Class will absorb a disproportionate share of the risk that a relatively fast
rate of prepayments will result in the early retirement of the investment, that
is, "call risk", and, if applicable, the risk that a relatively slow rate of
prepayments will extend the average life of the investment, that is, "extension
risk" that would otherwise be allocated to the related Controlled Amortization
Class. Accordingly, Companion Classes can exhibit significant average life
variability.
OTHER FACTORS AFFECTING YIELD, WEIGHTED AVERAGE LIFE AND MATURITY
BALLOON PAYMENTS; EXTENSIONS OF MATURITY. Some or all of the Mortgage Loans
included in a particular Trust Fund may require that balloon payments be made at
maturity. Because the ability of a borrower to make a balloon payment typically
will depend upon its ability either to refinance the loan or to sell the
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related Mortgaged Property, there is a risk that Mortgage Loans that require
balloon payments may default at maturity, or that the maturity of such a
Mortgage Loan may be extended in connection with a workout. In the case of
defaults, recovery of proceeds may be delayed by, among other things, bankruptcy
of the borrower or adverse conditions in the market where the property is
located. In order to minimize losses on defaulted Mortgage Loans, the Master
Servicer or a Special Servicer, to the extent and under the circumstances set
forth herein and in the related Prospectus Supplement, may be authorized to
modify Mortgage Loans that are in default or as to which a payment default is
imminent. Any defaulted balloon payment or modification that extends the
maturity of a Mortgage Loan may delay distributions of principal on a class of
Offered Certificates and thereby extend the weighted average life of such
Certificates and, if such Certificates were purchased at a discount, reduce the
yield thereon.
NEGATIVE AMORTIZATION. The weighted average life of a class of Certificates
can be affected by Mortgage Loans that permit negative amortization. In general,
such Mortgage Loans by their terms limit the amount by which scheduled payments
may adjust in response to changes in Mortgage Rates and/or provide that
scheduled payment amounts will adjust less frequently than the Mortgage Rates.
Accordingly, during a period of rising interest rates, the scheduled payment on
a Mortgage Loan that permits negative amortization may be less than the amount
necessary to amortize the loan fully over its remaining amortization schedule
and pay interest at the then applicable Mortgage Rate. In that case, the
Mortgage Loan balance would amortize more slowly than necessary to repay it over
such schedule and, if the amount of scheduled payment were less than the amount
necessary to pay current interest at the applicable Mortgage Rate, the loan
balance would negatively amortize to the extent of the amount of the interest
shortfall. Conversely, during a period of declining interest rates, the
scheduled payment on such a Mortgage Loan may exceed the amount necessary to
amortize the loan fully over its remaining amortization schedule and pay
interest at the then applicable Mortgage Rate. In that case, the excess would be
applied to principal, thereby resulting in amortization at a rate faster than
necessary to repay the Mortgage Loan balance over such schedule.
A slower or negative rate of Mortgage Loan amortization would
correspondingly be reflected in a slower or negative rate of amortization for
one or more classes of Certificates of the related series. Accordingly, the
weighted average lives of Mortgage Loans that permit negative amortization (and
that of the classes of Certificates to which any such negative amortization
would be allocated or which would bear the effects of a slower rate of
amortization on such Mortgage Loans) may increase as a result of such feature. A
faster rate of Mortgage Loan amortization will shorten the weighted average life
of such Mortgage Loans and, correspondingly, the weighted average lives of those
classes of Certificates then entitled to a portion of the principal payments on
such Mortgage Loans. The related Prospectus Supplement will describe, if
applicable, the manner in which negative amortization in respect of the Mortgage
Loans in any Trust Fund is allocated among the respective classes of
Certificates of the related series.
FORECLOSURES AND PAYMENT PLANS. The number of foreclosures and the
principal amount of the Mortgage Loans that are foreclosed in relation to the
number and principal amount of Mortgage Loans that are repaid in accordance with
their terms will affect the weighted average lives of those Mortgage Loans and,
accordingly, the weighted average lives of and yields on the Certificates of the
related series. Servicing decisions made with respect to the Mortgage Loans,
including the use of payment plans prior to a demand for acceleration and the
restructuring of Mortgage Loans in bankruptcy proceedings, may also have an
effect upon the payment patterns of particular Mortgage Loans and thus the
weighted average lives of and yields on the Certificates of the related series.
LOSSES AND SHORTFALLS ON THE MORTGAGE ASSETS. The yield to holders of the
Offered Certificates of any series will directly depend on the extent to which
such holders are required to bear the effects of any losses or shortfalls in
collections arising out of defaults on the Mortgage Assets in the related Trust
Fund and the
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timing of such losses and shortfalls. In general, the earlier that any such loss
or shortfall occurs, the greater will be the negative effect on yield for any
class of Certificates that is required to bear the effects thereof.
The amount of any losses or shortfalls in collections on the Mortgage Assets
in any Trust Fund (to the extent not covered or offset by draws on any reserve
fund or under any instrument of Credit Support) will be allocated among the
respective classes of Certificates of the related series in the priority and
manner, and subject to the limitations, specified in the related Prospectus
Supplement. As described in the related Prospectus Supplement, such allocations
may result in reductions in the entitlements to interest and/or Certificate
Balances of one or more such classes of Certificates, or may be effected simply
by a prioritization of payments among such classes of Certificates. The yield to
maturity on a class of Subordinate Certificates may be extremely sensitive to
losses and shortfalls in collections on the Mortgage Assets in the related Trust
Fund.
ADDITIONAL CERTIFICATE AMORTIZATION. In addition to entitling the holders
thereof to a specified portion (which may range from none to all) of the
principal payments received on the Mortgage Assets in the related Trust Fund,
one or more classes of Certificates of any series, including one or more classes
of Offered Certificates of such series, may provide for distributions of
principal thereof from (i) amounts attributable to interest accrued but not
currently distributable on one or more classes of Accrual Certificates, (ii)
Excess Funds or (iii) any other amounts described in the related Prospectus
Supplement. As specifically set forth in the related Prospectus Supplement,
"Excess Funds" will, in general, represent that portion of the amounts
distributable in respect of the Certificates of any series on any Distribution
Date that represent (i) interest received or advanced on the Mortgage Assets in
the related Trust Fund that is in excess of the interest currently distributable
on the Certificates of such series, as well as any interest accrued but not
currently distributable on any Accrual Certificates of such series or (ii)
Prepayment Premiums, payments from Equity Participations or any other amounts
received on the Mortgage Assets in the related Trust Fund that do not constitute
interest thereon or principal thereof.
The amortization of any class of Certificates out of the sources described
in the preceding paragraph would shorten the weighted average life of such
Certificates and, if such Certificates were purchased at a premium, reduce the
yield thereon. The related Prospectus Supplement will discuss the relevant
factors to be considered in determining whether distributions of principal of
any class of Certificates out of such sources would have any material effect on
the rate at which such Certificates are amortized.
THE DEPOSITOR
First Union Commercial Mortgage Securities, Inc., the Depositor, is a North
Carolina corporation organized on August 17, 1988 as a wholly-owned subsidiary
of First Union National Bank, a national banking association with its main
office located in Charlotte, North Carolina. First Union National Bank is a
subsidiary of First Union Corporation, a North Carolina corporation registered
as a bank holding company under the Bank Holding Company Act of 1956, as
amended. The Depositor's principal business is to acquire, hold and/or sell or
otherwise dispose of cash flow assets, usually in connection with the
securitization of that asset. The Depositor maintains its principal office at
301 South College St., Charlotte, N.C. 28228-0600. Its telephone number is
704-374-6161. There can be no assurance that the Depositor will have any
significant assets.
USE OF PROCEEDS
The net proceeds to be received from the sale of the Certificates of any
series will be applied by the Depositor to the purchase of Trust Assets or will
be used by the Depositor for general corporate purposes. The Depositor expects
to sell the Certificates from time to time, but the timing and amount of
offerings of Certificates will depend on a number of factors, including the
volume of Mortgage Assets acquired by the Depositor, prevailing interest rates,
availability of funds and general market conditions.
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DESCRIPTION OF THE CERTIFICATES
GENERAL
In the aggregate, the Certificates of each series of Certificates will
represent the entire beneficial ownership interest in the Trust Fund created
pursuant to the related Pooling Agreement. Each series of Certificates may
consist of one or more classes of Certificates (including classes of Offered
Certificates), and such class or classes may (i) provide for the accrual of
interest thereon at a fixed, variable or adjustable rate; (ii) be senior
(collectively, "Senior Certificates") or subordinate (collectively, "Subordinate
Certificates") to one or more other classes of Certificates in entitlement to
certain distributions on the Certificates; (iii) be entitled to distributions of
principal, with disproportionately small, nominal or no distributions of
interest (collectively, "Stripped Principal Certificates"); (iv) be entitled to
distributions of interest, with disproportionately small, nominal or no
distributions of principal (collectively "Stripped Interest Certificates"); (v)
provide for distributions of principal and/or interest thereon that commence
only after the occurrence of certain events such as the retirement of one or
more other classes of Certificates of such series; (vi) provide for
distributions of principal to be made, from time to time or for designated
periods, at a rate that is faster (and, in some cases, substantially faster) or
slower (and, in some cases, substantially slower) than the rate at which
payments or other collections of principal are received on the Mortgage Assets
in the related Trust Fund; (vii) provide for distributions of principal to be
made, subject to available funds, based on a specified principal payment
schedule or other methodology; and/or (viii) provide for distributions based on
a combination of two or more components thereof with one or more of the
characteristics described in this paragraph, including a Stripped Principal
Certificate component and a Stripped Interest Certificate component, to the
extent of available funds, in each case as described in the related Prospectus
Supplement. Any such classes may include classes of Offered Certificates. With
respect to Certificates with two or more components, references herein to
Certificate Balance, Notional Amount and Pass-Through Rate refer to the
principal balance, if any, Notional Amount, if any, and the Pass-Through Rate,
if any, for any such component.
Each class of Offered Certificates of a series will be issued in minimum
denominations corresponding to the Certificate Balances or, in case of Stripped
Interest Certificates or REMIC Residual Certificates, Notional Amounts or
percentage interests specified in the related Prospectus Supplement. As provided
in the related Prospectus Supplement, one or more classes of Offered
Certificates of any series may be issued in fully registered, definitive form
(such Certificates, "Definitive Certificates") or may be offered in book-entry
format (such Certificates, "Book-Entry Certificates") through the facilities of
DTC. The Offered Certificates of each series (if issued as Definitive
Certificates) may be transferred or exchanged, subject to any restrictions on
transfer described in the related Prospectus Supplement, at the location
specified in the related Prospectus Supplement, without the payment of any
service charge, other than any tax or other governmental charge payable in
connection therewith. Interests in a class of Book-Entry Certificates will be
transferred on the book-entry records of DTC and its participating
organizations. See "Risk Factors-- Limited Liquidity", "--Limited Assets" and
"--Book-Entry Registration".
DISTRIBUTIONS
Distributions on the Certificates of each series will be made by or on
behalf of the related Trustee or Master Servicer on each Distribution Date as
specified in the related Prospectus Supplement from the Available Distribution
Amount for such series and such Distribution Date. If so provided in the related
Prospectus Supplement, the "Available Distribution Amount" for any series of
Certificates and any Distribution Date will refer to the total of all payments
or other collections (or advances in lieu thereof) on, under or in respect of
the Mortgage Assets and any other assets included in the related Trust Fund that
are available for distribution to the Certificateholders of such series on such
date. The particular components of the Available Distribution Amount for any
series on each Distribution Date will be more specifically described in the
related Prospectus Supplement.
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Except as otherwise specified in the related Prospectus Supplement,
distributions on the Certificates of each series (other than the final
distribution in retirement of any such Certificate) will be made to the persons
in whose names such Certificates are registered at the close of business on the
last business day of the month preceding the month in which the applicable
Distribution Date occurs (the "Record Date"), and the amount of each
distribution will be determined as of the close of business on the date (the
"Determination Date") specified in the related Prospectus Supplement. All
distributions with respect to each class of Certificates on each Distribution
Date will be allocated pro rata among the outstanding Certificates in such
class. Payments will be made either by wire transfer in immediately available
funds to the account of a Certificateholder at a bank or other entity having
appropriate facilities therefor, if such Certificateholder has provided the
Trustee or other person required to make such payments with wiring instructions
(which may be provided in the form of a standing order applicable to all
subsequent distributions) no later than the date specified in the related
Prospectus Supplement (and, if so provided in the related Prospectus Supplement,
such Certificateholder holds Certificates in the requisite amount or
denomination specified therein), or by check mailed to the address of such
Certificateholder as it appears on the Certificate Register; provided, however,
that the final distribution in retirement of any class of Certificates (whether
Definitive Certificates or Book-Entry Certificates) will be made only upon
presentation and surrender of such Certificates at the location specified in the
notice to Certificateholders of such final distribution.
DISTRIBUTIONS OF INTEREST ON THE CERTIFICATES
Each class of Certificates of each series (other than certain classes of
Stripped Principal Certificates and certain REMIC Residual Certificates that
have no Pass-Through Rate) may have a different Pass-Through Rate, which may be
fixed, variable or adjustable. The related Prospectus Supplement will specify
the Pass-Through Rate or, in the case of a variable or adjustable Pass-Through
Rate, the method for determining the Pass-Through Rate, for each class. Unless
otherwise specified in the related Prospectus Supplement, interest on the
Certificates of each series will be calculated on the basis of a 360-day year
consisting of twelve 30-day months.
Distributions of interest in respect of the Certificates of any class (other
than any class of Certificates that will be entitled to distributions of accrued
interest commencing only on the Distribution Date, or under the circumstances,
specified in the related Prospectus Supplement ("Accrual Certificates"), and
other than any class of Stripped Principal Certificates or REMIC Residual
Certificates that is not entitled to any distributions of interest) will be made
on each Distribution Date based on the Accrued Certificate Interest for such
class and such Distribution Date, subject to the sufficiency of the portion of
the Available Distribution Amount allocable to such class on such Distribution
Date. Prior to the time interest is distributable on any class of Accrual
Certificates, the amount of Accrued Certificate Interest otherwise distributable
on such class will be added to the Certificate Balance thereof on each
Distribution Date. With respect to each class of Certificates (other than
certain classes of Stripped Interest Certificates and REMIC Residual
Certificates), "Accrued Certificate Interest" for each Distribution Date will be
equal to interest at the applicable Pass-Through Rate accrued for a specified
period (generally the period between Distribution Dates) on the outstanding
Certificate Balance thereof immediately prior to such Distribution Date. Unless
otherwise provided in the related Prospectus Supplement, Accrued Certificate
Interest for each Distribution Date on Stripped Interest Certificates will be
similarly calculated except that it will accrue on a notional amount (a
"Notional Amount") that is either (i) based on the principal balances of some or
all of the Mortgage Assets in the related Trust Fund or (ii) equal to the
Certificate Balances of one or more other classes of Certificates of the same
series. Reference to a Notional Amount with respect to a class of Stripped
Interest Certificates is solely for convenience in making certain calculations
and does not represent the right to receive any distributions of principal. If
so specified in the related Prospectus Supplement, the amount of Accrued
Certificate Interest that is otherwise distributable on (or, in the case of
Accrual Certificates, that may otherwise be added to the Certificate Balance of)
one or more classes of the Certificates of a series will be reduced to the
extent that any Prepayment Interest Shortfalls, as
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described under "Yield and Maturity Considerations--Certain Shortfalls in
Collections of Interest", exceed the amount of any sums (including, if and to
the extent specified in the related Prospectus Supplement, the Master Servicer's
servicing compensation) that are applied to offset such shortfalls. The
particular manner in which such shortfalls will be allocated among some or all
of the classes of Certificates of that series will be specified in the related
Prospectus Supplement. The related Prospectus Supplement will also describe the
extent to which the amount of Accrued Certificate Interest that is otherwise
distributable on (or, in the case of Accrual Certificates, that may otherwise be
added to the Certificate Balance of) a class of Offered Certificates may be
reduced as a result of any other contingencies, including delinquencies, losses
and deferred interest on or in respect of the Mortgage Assets in the related
Trust Fund. Unless otherwise provided in the related Prospectus Supplement, any
reduction in the amount of Accrued Certificate Interest otherwise distributable
on a class of Certificates by reason of the allocation to such class of a
portion of any deferred interest on or in respect of the Mortgage Assets in the
related Trust Fund will result in a corresponding increase in the Certificate
Balance of such class. See "Risk Factors-- Prepayments; Average Life of
Certificates; Yields" and "Yield and Maturity Considerations".
DISTRIBUTIONS OF CERTIFICATE PRINCIPAL
Each class of Certificates of each series (other than certain classes of
Stripped Interest Certificates of REMIC Residual Certificates) will have a
Certificate Balance which, at any time, will equal the then maximum amount that
the holders of Certificates of such class will be entitled to receive in respect
of principal out of the future cash flow on the Mortgage Assets and other assets
included in the related Trust Fund. The outstanding Certificate Balance of a
class of Certificates will be reduced by distributions of principal made thereon
from time to time and, if so provided in the related Prospectus Supplement,
further by any losses incurred in respect of the related Mortgage Assets
allocated thereto from time to time. In turn, the outstanding Certificate
Balance of a class of Certificates may be increased as a result of any deferred
interest on or in respect of the related Mortgage Assets that is allocated
thereto from time to time, and will be increased, in the case of a class of
Accrual Certificates prior to the Distribution Date on which distributions of
interest thereon are required to commence, by the amount of any Accrued
Certificate Interest in respect thereof (reduced as described above). Unless
otherwise provided in the related Prospectus Supplement, the initial aggregate
Certificate Balance of all classes of a series of Certificates will not be
greater than the aggregate outstanding principal balance of the related Mortgage
Assets as of the applicable Cut-off Date, after application of scheduled
payments due on or before such date, whether or not received. As and to the
extent described in the related Prospectus Supplement, distributions of
principal with respect to a series of Certificates will be made on each
Distribution Date to the holders of the class or classes of Certificates of such
series entitled thereto until the Certificate Balances of such Certificates have
been reduced to zero. Distributions of principal with respect to one or more
classes of Certificates may be made at a rate that is faster (and, in some
cases, substantially faster) than the rate at which payments or other
collections of principal are received on the Mortgage Assets in the related
Trust Fund, may not commence until the occurrence of certain events, such as the
retirement of one or more other classes of Certificates of the same series, or
may be made at a rate that is slower (and, in some cases, substantially slower)
than the rate at which payments or other collections of principal are received
on such Mortgage Assets. In addition, distributions of principal with respect to
one or more classes of Certificates (each such class, a "Controlled Amortization
Class") may be made, subject to available funds, based on a specified principal
payment schedule and, with respect to one or more classes of Certificates (each
such class, a "Companion Class"), may be contingent on the specified principal
payment schedule for a Controlled Amortization Class of the same series and the
rate at which payments and other collections of principal on the Mortgage Assets
in the related Trust Fund are received. Unless otherwise specified in the
related Prospectus Supplement, distributions of principal of any class of
Certificates will be made on a pro rata basis among all of the Certificates of
such class.
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DISTRIBUTIONS ON THE CERTIFICATES IN RESPECT OF PREPAYMENT PREMIUMS OR IN
RESPECT OF EQUITY PARTICIPATIONS
If so provided in the related Prospectus Supplement, Prepayment Premiums or
payments in respect of Equity Participations received on or in connection with
the Mortgage Assets in any Trust Fund will be distributed on each Distribution
Date to the holders of the class of Certificates of the related series entitled
thereto in accordance with the provisions described in such Prospectus
Supplement.
ALLOCATION OF LOSSES AND SHORTFALLS
The amount of any losses or shortfalls in collections on the Mortgage Assets
in any Trust Fund (to the extent not covered or offset by draws on any reserve
fund or under any instrument of Credit Support) will be allocated among the
respective classes of Certificates of the related series in the priority and
manner, and subject to the limitations, specified in the related Prospectus
Supplement. As described in the related Prospectus Supplement, such allocations
may result in reductions in the entitlements to interest and/or in the
Certificate Balances of one or more such classes of Certificates, or may be
effected simply by a prioritization of payments among such classes of
Certificates.
ADVANCES IN RESPECT OF DELINQUENCIES
If and to the extent provided in the related Prospectus Supplement, the
related Master Servicer and/or another specified person (including a provider of
Credit Support) may be obligated to advance, or have the option of advancing, on
or before each Distribution Date, from its or their own funds or from excess
funds held in the related Certificate Account that are not part of the Available
Distribution Amount for the related series of Certificates for such Distribution
Date, an amount up to the aggregate of any payments of principal (other than any
balloon payments) and interest that were due on or in respect of such Mortgage
Loans during the related Due Period and were delinquent on the related
Determination Date. Unless otherwise provided in the related Prospectus
Supplement, a "Due Period" is the period between Distribution Dates, and
scheduled payments on the Mortgage Loans in any Trust Fund that became due
during a given Due Period will, to the extent received by the related
Determination Date or advanced by the related Master Servicer or other specified
person, be distributed on the Distribution Date next succeeding such
Determination Date.
Advances are intended to maintain a regular flow of scheduled interest and
principal payments to holders of the class or classes of Certificates entitled
thereto, rather than to guarantee or insure against losses. Accordingly, all
advances made from the advancing person's own funds will be reimbursable out of
related recoveries on the Mortgage Loans (including amounts received under any
instrument of Credit Support) respecting which such advances were made (as to
any Mortgage Loan, "Related Proceeds") and such other specific sources as may be
identified in the related Prospectus Supplement, including in the case of a
series that includes one or more classes of Subordinate Certificates,
collections on other Mortgage Loans in the related Trust Fund that would
otherwise be distributable to the holders of one or more classes of such
Subordinate Certificates. No advance will be required to be made by the Master
Servicer or by any other person if, in the good faith judgment of the Master
Servicer or such other person, such advance would not be recoverable from
Related Proceeds or another specifically identified source (any such advance, a
"Nonrecoverable Advance"); and, if previously made by a Master Servicer or
another person, a Nonrecoverable Advance will be reimbursable from any amounts
in the related Certificate Account prior to any distributions being made to the
related series of Certificateholders.
If advances have been made from excess funds in a Certificate Account, the
Master Servicer or other person that advanced such funds will be required to
replace such funds in the Certificate Account on any future Distribution Date to
the extent that funds then in the Certificate Account are insufficient to permit
full distributions to Certificateholders on such date. If so specified in the
related Prospectus Supplement, the obligation of a Master Servicer or other
specified person to make advances may be secured by a cash
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advance reserve fund or a surety bond. If applicable, information regarding the
characteristics of, and the identity of any obligor on, any such surety bond
will be set forth in the related Prospectus Supplement.
If and to the extent so provided in the related Prospectus Supplement, any
entity making advances will be entitled to receive interest thereon for the
period that such advances are outstanding at the rate specified in such
Prospectus Supplement, and such entity will be entitled to payment of such
interest periodically from general collections on the Mortgage Loans in the
related Trust Fund prior to any payment to Certificateholders or as otherwise
provided in the related Pooling Agreement and described in such Prospectus
Supplement.
The Prospectus Supplement for any series of Certificates evidencing an
interest in a Trust Fund that includes CMBS will describe any comparable
advancing obligation of a party to the related Pooling Agreement or of a party
to the related CMBS Agreement.
REPORTS TO CERTIFICATEHOLDERS
On each Distribution Date, together with the distribution to the holders of
each class of the Offered Certificates of a series, a Master Servicer or
Trustee, as provided in the related Prospectus Supplement, will forward to each
such holder, a statement (a "Distribution Date Statement") that, unless
otherwise provided in the related Prospectus Supplement, will set forth, among
other things, in each case to the extent applicable:
(i) the amount of such distribution to holders of Certificates of such class
that was applied to reduce the Certificate Balance thereof;
(ii) the amount of such distribution to holders of Certificates of such
class that is allocable to Accrued Certificate Interest;
(iii) the amount, if any, of such distribution to holders of Certificates of
such class that is allocable to (A) Prepayment Premiums and (B) payments on
account of Equity Participations;
(iv) the amount of servicing compensation received by the related Master
Servicer (and, if payable directly out of the related Trust Fund, by any Special
Servicer and any Sub-Servicer (as defined herein)) and such other customary
information as such Master Servicer or the related Trustee, as the case may be,
deems necessary, or desirable, or that a Certificateholder reasonably requests,
to enable Certificateholders to prepare their tax returns;
(v) the aggregate amount of advances included in such distribution, and the
aggregate amount of unreimbursed advances at the close of business on such
Distribution Date;
(vi) the aggregate principal balance of the related Mortgage Loans on, or as
of a specified date shortly prior to, such Distribution Date;
(vii) the number and aggregate principal balance of any Mortgage Loans in
respect of which (A) one scheduled payment is delinquent, (B) two scheduled
payments are delinquent, (C) three or more scheduled payments are delinquent and
(D) foreclosure proceedings have been commenced;
(viii) with respect to each Mortgage Loan that is delinquent in respect of
three or more scheduled payments, (A) the loan number thereof, (B) the unpaid
balance thereof, (C) whether the delinquency is in respect of any balloon
payment, (D) the aggregate amount of unreimbursed servicing expenses and
unreimbursed advances in respect thereof, (E) if applicable, the aggregate
amount of any interest accrued and payable to the related Master Servicer, a
Special Servicer and/or any other entity on related servicing expenses and
related advances, (F) whether a notice of acceleration has been sent to the
borrower and, if so, the date of such notice and (G) a brief description of the
status of any foreclosure proceedings or negotiations with the borrower;
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(ix) with respect to any Mortgage Loan liquidated during the related
Prepayment Period (that is, the specified period, generally equal in length to
the time period between Distribution Dates, during which prepayments and other
unscheduled collections on the Mortgage Loans in the related Trust Fund must be
received in order to be distributed on a particular Distribution Date (the
"Prepayment Period")) in connection with a default thereon or by reason of being
purchased out of the related Trust Fund, (A) the loan number thereof, (B) the
manner in which it was liquidated, (C) the aggregate amount of Liquidation
Proceeds received, (D) the portion of such Liquidation Proceeds payable or
reimbursable to the related Master Servicer or a Special Servicer in respect of
such Mortgage Loan and (E) the amount of any loss to Certificateholders;
(x) with respect to each Mortgaged Property acquired through foreclosure,
deed-in-lieu of foreclosure or otherwise ("REO Property") and included in the
related Trust Fund as of the end of the related Due Period or Prepayment Period,
as applicable, (A) the loan number of the related Mortgage Loan, (B) the date of
acquisition, (C) the principal balance of the related Mortgage Loan (calculated
as if such Mortgage Loan were still outstanding taking into account certain
limited modifications to the terms thereof specified in the related Pooling
Agreement), (D) the aggregate amount of unreimbursed servicing expenses and
unreimbursed advances in respect thereof and (E) if applicable, the aggregate
amount of interest accrued and payable to the related Master Servicer, a Special
Servicer and/or any other entity on related servicing expenses and related
advances;
(xi) with respect to any REO Property sold during the related Prepayment
Period, (A) the loan number of the related Mortgage Loan, (B) the aggregate
amount of sales proceeds, (C) the portion of such sales proceeds payable or
reimbursable to the related Master Servicer or a Special Servicer in respect of
such REO Property or the related Mortgage Loan and (D) the amount of any loss to
Certificateholders in respect of the related Mortgage Loan;
(xii) the Certificate Balance or Notional Amount, as the case may be, of
each class of Certificates (including any class of Certificates not offered
hereby) at the close of business on such Distribution Date, separately
identifying any reduction in such Certificate Balance due to the allocation of
any losses in respect of the related Mortgage Loans and any increase in the
Certificate Balance of a class of Accrual Certificates in the event that Accrued
Certificate Interest has been added to such balance;
(xiii) the aggregate amount of principal prepayments made on the Mortgage
Loans during the related Prepayment Period;
(xiv) the amount deposited in or withdrawn from any reserve fund on such
Distribution Date, and the amount remaining on deposit in such reserve fund as
of the close of business on such Distribution Date;
(xv) the amount of any Accrued Certificate Interest due but not paid on such
class of Offered Certificates at the close of business on such Distribution
Date;
(xvi) if such class of Offered Certificates has a variable Pass-Through Rate
or an adjustable Pass-Through Rate, the Pass-Through Rate applicable thereto for
such Distribution Date and, if determinable, for the next succeeding
Distribution Date; and
(xvii) if the related Trust Fund includes one or more instruments of Credit
Support, such as a letter of credit, an insurance policy and/or a surety bond,
the amount of coverage under each such instrument as of the close of business on
such Distribution Date.
In the case of information furnished pursuant to subclauses (i)-(iv) above,
the amounts will be expressed as a dollar amount per minimum denomination of the
relevant class of Offered Certificates or per a specified portion of such
minimum denomination. The Prospectus Supplement for each series of Offered
Certificates will describe any additional information to be included in reports
to the holders of such Certificates.
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Within a reasonable period of time after the end of each calendar year, the
related Master Servicer or Trustee, as the case may be, will be required to
furnish to each person who at any time during the calendar year was a holder of
an Offered Certificate a statement containing the information set forth in
subclauses (i)-(iv) above, aggregated for such calendar year or the applicable
portion thereof during which such person was a Certificateholder. Such
obligation will be deemed to have been satisfied to the extent that
substantially comparable information is provided pursuant to any requirements of
the Code as are from time to time in force. See, however, "Description of the
Certificates--Book-Entry Registration and Definitive Certificates".
If the Trust Fund for a series of Certificates includes CMBS, the ability of
the related Master Servicer or Trustee, as the case may be, to include in any
Distribution Date Statement information regarding the mortgage loans underlying
such CMBS will depend on the reports received with respect to such CMBS. In such
cases, the related Prospectus Supplement will describe the loan-specific
information to be included in the Distribution Date Statements that will be
forwarded to the holders of the Offered Certificates of that series in
connection with distributions made to them.
VOTING RIGHTS
The Voting Rights evidenced by each series of Certificates will be allocated
among the respective classes of such series in the manner described in the
related Prospectus Supplement.
Certificateholders will generally have a right to vote only with respect to
required consents to certain amendments to the related Pooling Agreement and as
otherwise specified in the related Prospectus Supplement. See "Description of
the Pooling Agreements--Amendment". The holders of specified amounts of
Certificates of a particular series will have the collective right to remove the
related Trustee and also to cause the removal of the related Master Servicer in
the case of an Event of Default on the part of the Master Servicer. See
"Description of thePooling Agreements--Events of Default", "--Rights Upon Event
of Default" and "--Resignation and Removal of the Trustee".
TERMINATION
The obligations created by the Pooling Agreement for each series of
Certificates will terminate upon the payment (or provision for payment) to
Certificateholders of that series of all amounts held in the related Certificate
Account, or otherwise by the related Master Servicer or Trustee or by a Special
Servicer, and required to be paid to such Certificateholders pursuant to such
Pooling Agreement following the earlier of (i) the final payment or other
liquidation of the last Mortgage Asset subject thereto or the disposition of all
property acquired upon foreclosure of any Mortgage Loan subject thereto and (ii)
the purchase of all of the assets of the related Trust Fund by the party
entitled to effect such termination, under the circumstances and in the manner
that will be described in the related Prospectus Supplement. Written notice of
termination of a Pooling Agreement will be given to each Certificateholder of
the related series, and the final distribution will be made only upon
presentation and surrender of the Certificates of such series at the location to
be specified in the notice of termination.
If so specified in the related Prospectus Supplement, a series of
Certificates will be subject to optional early termination through the
repurchase of the assets in the related Trust Fund by a party that will be
specified therein, under the circumstances and in the manner set forth therein.
If so provided in the related Prospectus Supplement, upon the reduction of the
Certificate Balance of a specified class or classes of Certificates by a
specified percentage or amount, a party identified therein will be authorized or
required to solicit bids for the purchase of all the assets of the related Trust
Fund, or of a sufficient portion of such assets to retire such class or classes,
under the circumstances and in the manner set forth therein. In any event,
unless otherwise disclosed in the applicable Prospectus Supplement, any such
repurchase or purchase shall be at a price or prices that are generally based
upon the unpaid principal balance of, plus accrued interest on, all Mortgage
Loans (other than Mortgage Loans secured by REO Properties) then
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included in a Trust Fund and the fair market value of all REO Properties then
included in the Trust Fund, which may or may not result in full payment of the
aggregate Certificate Balance plus accrued interest and any undistributed
shortfall in interest for the then outstanding Certificates. Any sale of Trust
Fund assets will be without recourse to the Trust and/or Certificateholders,
provided, however, that there can be no assurance that in all events a court
would accept such a contractual stipulation.
BOOK-ENTRY REGISTRATION AND DEFINITIVE CERTIFICATES
If so provided in the related Prospectus Supplement, one or more classes of
the Offered Certificates of any series will be offered in book-entry format
through the facilities of The Depository Trust Company, and each such class will
be represented by one or more global Certificates registered in the name of DTC
or its nominee.
DTC is a limited-purpose trust company organized under the New York Banking
Law, a "banking corporation" within the meaning of the New York Banking Law, a
member of the Federal Reserve System, a "clearing corporation" within the
meaning of the New York Uniform Commercial Code and a "clearing agency"
registered pursuant to the provisions of Section 17A of the Exchange Act. DTC
holds securities that its Participants deposit with DTC. DTC also facilitates
the settlement among Participants of securities transactions, such as transfers
and pledges, in deposited securities through electronic computerized book entry
changes in their accounts, thereby eliminating the need for physical movement of
securities certificates. "Direct Participants", which maintain accounts with
DTC, include securities brokers and dealers, banks, trust companies and clearing
corporations and may include certain other organizations. DTC is owned by a
number of its Direct Participants and by the New York Stock Exchange, Inc., the
American Stock Exchange, Inc., and the National Association of Securities
Dealers, Inc. Access to the DTC system also is available to others such as
securities brokers and dealers, banks and trust companies that clear through or
maintain a custodial relationship with a Direct Participant, either directly or
indirectly ("Indirect Participants"). The rules applicable to DTC and its
Participants are on file with the Commission.
Purchases of Book-Entry Certificates under the DTC system must be made by or
through Direct Participants, which will receive a credit for the Book-Entry
Certificates on DTC's records. The ownership interest of each actual purchaser
of a Book-Entry Certificate (a "Certificate Owner") will in turn be recorded on
the records of Direct and Indirect Participants. Certificate Owners will not
receive written confirmation from DTC of their purchases, but Certificate Owners
are expected to receive written confirmations providing details of such
transactions, as well as periodic statements of their holdings, from the Direct
or Indirect Participant through which each Certificate Owner entered into the
transaction. Transfers of ownership interest in the Book-Entry Certificates will
be accomplished by entries made on the books of Participants acting on behalf of
Certificate Owners. Certificate Owners will not receive certificates
representing their ownership interests in the Book-Entry Certificates, except in
the event that use of the book-entry system for the Book-Entry Certificates of
any series is discontinued as described below.
DTC will not know the identity of actual Certificate Owners of the
Book-Entry Certificates; DTC's records reflect only the identity of the Direct
Participants to whose accounts such Certificates are credited. The Participants
will remain responsible for keeping account of their holdings on behalf of their
customers. Notices and other communications conveyed by DTC to Direct
Participants, by Direct Participants to Indirect Participants, and by Direct
Participants and Indirect Participants to Certificate Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as
may be in effect from time to time.
Distributions on the Book-Entry Certificates will be made to DTC. DTC's
practice is to credit Direct Participants' accounts on the related Distribution
Date in accordance with their respective holdings shown on DTC's records unless
DTC has reason to believe that it will not receive payment on such date.
Disbursement of such distributions by Participants to Certificate Owners will be
governed by standing
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instructions and customary practices, as is the case with securities held for
the accounts of customers in bearer form or registered in "street name", and
will be the responsibility of each such Participant (and not of DTC, the
Depositor or any Trustee or Master Servicer), subject to any statutory or
regulatory requirements as may be in effect from time to time. Under a
book-entry system, Certificate Owners may receive payments after the related
Distribution Date.
As may be provided in the related Prospectus Supplement, the only
"Certificateholder'(as such term is used in the related Pooling Agreement) of a
Book-Entry Certificate will be the nominee of DTC, and the Certificate Owners
will not be recognized as Certificateholders under the Pooling Agreement.
Certificate Owners will be permitted to exercise the rights of
Certificateholders under the related Pooling Agreement only indirectly through
the Participants who in turn will exercise their rights through DTC. The
Depositor is informed that DTC will take action permitted to be taken by a
Certificateholder under a Pooling Agreement only at the direction of one or more
Participants to whose account with DTC interests in the Book-Entry Certificates
are credited.
Because DTC can act only on behalf of Participants, who in turn act on
behalf of Indirect Participants and certain Certificate Owners, the ability of a
Certificate Owner to pledge its interest in Book-Entry Certificates to persons
or entities that do not participate in the DTC system, or otherwise take actions
in respect of its interest in Book-Entry Certificates, may be limited due to the
lack of a physical certificate evidencing such interest.
As may be specified in the related Prospectus Supplement, Certificates
initially issued in book-entry form will be issued as Definitive Certificates to
Certificate Owners or their nominees, rather than to DTC or its nominee, only if
(i) the Depositor advises the Trustee in writing that DTC is no longer willing
or able to properly discharge its responsibilities as depository with respect to
such Certificates and the Depositor is unable to locate a qualified successor or
(ii) the Depositor, at its option, elects to terminate the book-entry system
through DTC with respect to such Certificates. Upon the occurrence of either of
the events described in the preceding sentence, DTC will be required to notify
all Participants of the availability through DTC of Definitive Certificates.
Upon surrender by DTC of the certificate or certificates representing a class of
Book-Entry Certificates, together with instructions for reregistration, the
Trustee or other designated party will be required to issue to the Certificate
Owners identified in such instructions the Definitive Certificates to which they
are entitled, and thereafter the holders of such Definitive Certificates will be
recognized as Certificateholders under the related Pooling Agreement.
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DESCRIPTION OF THE POOLING AGREEMENTS
GENERAL
The Certificates of each series will be issued pursuant to a pooling and
servicing agreement or other agreement specified in the related Prospectus
Supplement (in either case, a "Pooling Agreement"). In general, the parties to a
Pooling Agreement will include the Depositor, the Trustee, the Master Servicer
and, in some cases, a Special Servicer appointed as of the date of the Pooling
Agreement. However, a Pooling Agreement that relates to a Trust Fund that
consists solely of CMBS may not include a Master Servicer or other servicer as a
party. All parties to each Pooling Agreement under which Certificates of a
series are issued will be identified in the related Prospectus Supplement.
A form of a pooling and servicing agreement has been filed as an exhibit to
the Registration Statement of which this Prospectus is a part. However, the
provisions of each Pooling Agreement will vary depending upon the nature of the
Certificates to be issued thereunder and the nature of the related Trust Fund.
The following summaries describe certain provisions that may appear in a Pooling
Agreement under which Certificates that evidence interests in Mortgage Loans
will be issued. The Prospectus Supplement for a series of Certificates will
describe any provision of the related Pooling Agreement that materially differs
from the description thereof contained in this Prospectus and, if the related
Trust Fund includes CMBS, will summarize all of the material provisions of the
related Pooling Agreement. The summaries herein do not purport to be complete
and are subject to, and are qualified in their entirety by reference to, all of
the provisions of the Pooling Agreement for each series of Certificates and the
description of such provisions in the related Prospectus Supplement. As used
herein with respect to any series, the term "Certificate" refers to all of the
Certificates of that series, whether or not offered hereby and by the related
Prospectus Supplement, unless the context otherwise requires. The Depositor will
provide a copy of the Pooling Agreement (without exhibits) that relates to any
series of Certificates without charge upon written request of a holder of a
Certificate of such series addressed to First Union Commercial Mortgage
Securities, Inc., One First Union Center, Charlotte, N.C. 28288-0166, Attention:
Securitization Services.
ASSIGNMENT OF MORTGAGE ASSETS; REPURCHASES
As set forth in the related Prospectus Supplement, generally at the time of
issuance of any series of Certificates, the Depositor will assign (or cause to
be assigned) to the designated Trustee the Mortgage Loans to be included in the
related Trust Fund, together with, unless otherwise specified in the related
Prospectus Supplement, all principal and interest to be received on or with
respect to such Mortgage Loans after the Cut-off Date, other than principal and
interest due on or before the Cut-off Date. The Trustee will, concurrently with
such assignment, deliver the Certificates to or at the direction of the
Depositor in exchange for the Mortgage Loans and the other assets to be included
in the Trust Fund for such series. Each Mortgage Loan will be identified in a
schedule appearing as an exhibit to the related Pooling Agreement. Such schedule
generally will include detailed information that pertains to each Mortgage Loan
included in the related Trust Fund, which information will typically include the
address of the related Mortgaged Property and type of such property; the
Mortgage Rate and, if applicable, the applicable index, gross margin, adjustment
date and any rate cap information; the original and remaining term to maturity;
the original amortization term; the original and outstanding principal balance;
and the Loan-to-Value Ratio and Debt Service Coverage Ratio as of the date
indicated.
With respect to each Mortgage Loan to be included in a Trust Fund, the
Depositor will deliver (or cause to be delivered) to the related Trustee (or to
a custodian appointed by the Trustee) certain loan documents which will include
the original Mortgage Note endorsed, without recourse, to the order of the
Trustee, the original Mortgage (or a certified copy thereof) with evidence of
recording indicated thereon and an assignment of the Mortgage to the Trustee in
recordable form. The related Pooling Agreement will require that the Depositor
or other party thereto promptly cause each such assignment of Mortgage to be
recorded in the appropriate public office for real property records.
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The related Trustee (or the custodian appointed by the Trustee) will be
required to review the Mortgage Loan documents within a specified period of days
after receipt thereof, and the Trustee (or the custodian) will hold such
documents in trust for the benefit of the Certificateholders of the related
series. Unless otherwise specified in the related Prospectus Supplement, if any
such document is found to be missing or defective, in either case such that
interests of the Certificateholders are materially and adversely affected, the
Trustee (or such custodian) will be required to notify the Master Servicer and
the Depositor, and the Master Servicer will be required to notify the relevant
Mortgage Asset Seller. In that case, and if the Mortgage Asset Seller cannot
deliver the document or cure the defect within a specified number of days after
receipt of such notice, then unless otherwise specified in the related
Prospectus Supplement, the Mortgage Asset Seller will be obligated to replace
the related Mortgage Loan or repurchase it from the Trustee at a price that will
be specified in the related Prospectus Supplement.
If so provided in the related Prospectus Supplement, the Depositor will, as
to some or all of the Mortgage Loans, assign or cause to be assigned to the
Trustee the related Lease Assignments. In certain cases, the Trustee, or Master
Servicer, as applicable, may collect all moneys under the related Leases and
distribute amounts, if any, required under the Leases for the payment of
maintenance, insurance and taxes, to the extent specified in the related Leases.
The Trustee, or if so specified in the Prospectus Supplement, the Master
Servicer, as agent for the Trustee, may hold the Leases in trust for the benefit
of the Certificateholders.
With respect to each CMBS in certificate form, the Depositor will deliver or
cause to be delivered to the Trustee (or the custodian) the original certificate
or other definitive evidence of such CMBS together with bond power or other
instruments, certifications or documents required to transfer fully such CMBS to
the Trustee for the benefit of the Certificateholders. With respect to each CMBS
in uncertificated or book-entry form or held through a "clearing corporation"
within the meaning of the New York Uniform Commercial Code, the Depositor and
the Trustee will cause such CMBS to be registered directly or on the books of
such clearing corporation or of a financial intermediary in the name of the
Trustee for the benefit of the Certificateholders. Unless otherwise provided in
the related Prospectus Supplement, the related Pooling Agreement will require
that either the Depositor or the Trustee promptly cause any CMBS in certificated
form not registered in the name of the Trustee to be reregistered, with the
applicable persons, in the name of the Trustee.
REPRESENTATIONS AND WARRANTIES; REPURCHASES
The Depositor will, with respect to each Mortgage Loan in the related Trust
Fund, make or assign certain representations and warranties, (the person making
such representations and warranties, the "Warranting Party") covering, by way of
example: (i) the accuracy of the information set forth for such Mortgage Loan on
the schedule of Mortgage Loans appearing as an exhibit to the related Pooling
Agreement; (ii) the enforceability of the related Mortgage Note and Mortgage and
the existence of title insurance insuring the lien priority of the related
Mortgage; (iii) the Warranting Party's title to the Mortgage Loan and the
authority of the Warranting Party to sell the Mortgage Loan; and (iv) the
payment status of the Mortgage Loan. Each Warranting Party will be identified in
the related Prospectus Supplement.
Each Pooling Agreement will provide that the Master Servicer and/or Trustee
will be required to notify promptly any Warranting Party of any breach of any
representation or warranty made by it in respect of a Mortgage Loan that
materially and adversely affects the interests of the related
Certificateholders. If such Warranting Party cannot cure such breach within a
specified period following the date on which it was notified of such breach,
then, unless otherwise provided in the related Prospectus Supplement, it will be
obligated to repurchase such Mortgage Loan from the Trustee within a specified
period at a price that will be specified in the related Prospectus Supplement.
If so provided in the Prospectus Supplement for a series
of Certificates, a Warranting Party, in lieu of repurchasing a Mortgage Loan as
to which a breach has occurred, will have the option, exercisable upon certain
conditions and/or within a specified period after
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initial issuance of such series of Certificates, to replace such Mortgage Loan
with one or more other mortgage loans, in accordance with standards that will be
described in the Prospectus Supplement. This repurchase or substitution
obligation may constitute the sole remedy available to holders of Certificates
of any series for a breach of representation and warranty by a Warranting Party.
Moreover, neither the Depositor (unless it is the Warranting Party) nor the
Master Servicer will be obligated to purchase or replace a Mortgage Loan if a
Warranting Party defaults on its obligation to do so.
The dates as of which representations and warranties have been made by a
Warranting Party will be specified in the related Prospectus Supplement. In some
cases, such representations and warranties will have been made as of a date
prior to the date upon which the related series of Certificates is issued, and
thus may not address events that may occur following the date as of which they
were made. However, the Depositor will not include any Mortgage Loan in the
Trust Fund for any series of Certificates if anything has come to the
Depositor's attention that would cause it to believe that the representations
and warranties made in respect of such Mortgage Loan will not be accurate in all
material respects as of such date of issuance.
CERTIFICATE ACCOUNT
GENERAL. The Master Servicer and/or the Trustee will, as to each Trust
Fund, establish and maintain or cause to be established and maintained
Certificate Accounts for the collection of payments on the related Mortgage
Loans, which will be established so as to comply with the standards of each
Rating Agency that has rated any one or more classes of Certificates of the
related series. As described in the related Prospectus Supplement, a Certificate
Account may be maintained either as an interest-bearing or a
non-interest-bearing account, and the funds held therein may be held as cash or
invested in United States government securities and other investment grade
obligations specified in the related Pooling Agreement ("Permitted
Investments"). Any interest or other income earned on funds in the Certificate
Account will be paid to the related Master Servicer or Trustee as additional
compensation. If permitted by such Rating Agency or Agencies and so specified in
the related Prospectus Supplement, a Certificate Account may contain funds
relating to more than one series of mortgage pass-through certificates and may
contain other funds representing payments on mortgage loans owned by the related
Master Servicer or serviced by it on behalf of others.
DEPOSITS. Unless otherwise provided in the related Pooling Agreement and
described in the related Prospectus Supplement, the related Master Servicer,
Trustee or Special Servicer will be required to deposit or cause to be deposited
in the Certificate Account for each Trust Fund within a certain period following
receipt (in the case of collections and payments), the following payments and
collections received, or advances made, by the Master Servicer, the Trustee or
any Special Servicer subsequent to the Cut-off Date (other than payments due on
or before the Cut-off Date):
(i) all payments on account of principal, including principal
prepayments, on the Mortgage Loans;
(ii) all payments on account of interest on the Mortgage Loans,
including any default interest collected, in each case net of any portion
thereof retained by the Master Servicer, any Special Servicer or
Sub-Servicer as its servicing compensation or as compensation to the
Trustee;
(iii) all proceeds received under any hazard, title or other insurance
policy that provides coverage with respect to a Mortgaged Property or the
related Mortgage Loan (other than proceeds applied to the restoration of the
property or released to the related borrower in accordance with the
customary servicing practices of the Master Servicer (or, if applicable, a
Special Servicer) and/or the terms and conditions of the related Mortgage
(collectively, "Insurance Proceeds") and all other amounts received and
retained in connection with the liquidation of defaulted Mortgage Loans or
property acquired in respect thereof, by foreclosure or otherwise
("Liquidation Proceeds"), together with the
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net operating income (less reasonable reserves for future expenses) derived
from the operation of any Mortgaged Properties acquired by the Trust Fund
through foreclosure or otherwise;
(iv) any amounts paid under any instrument or drawn from any fund that
constitutes Credit Support for the related series of Certificates as
described under "Description of Credit Support";
(v) any advances made as described under "Description of the
Certificates--Advances in Respect of Delinquencies";
(vi) any amounts paid under any Cash Flow Agreement, as described under
"Description of the Trust Funds--Cash Flow Agreements";
(vii) all proceeds of the purchase of any Mortgage Loan, or property
acquired in respect thereof, by the Depositor, any Mortgage Asset Seller or
any other specified person as described under "--Assignment of Mortgage
Assets; Repurchases" and "--Representations and Warranties; Repurchases",
all proceeds of the purchase of any defaulted Mortgage Loan as described
under "--Realization Upon Defaulted Mortgage Loans", and all proceeds of any
Mortgage Asset purchased as described under "Description of the
Certificates--Termination" (all of the foregoing, also, "Liquidation
Proceeds");
(viii) any amounts paid by the Master Servicer to cover Prepayment
Interest Shortfalls arising out of the prepayment of Mortgage Loans as
described under "--Servicing Compensation and Payment of Expenses";
(ix) to the extent that any such item does not constitute additional
servicing compensation to the Master Servicer or a Special Servicer, any
payments on account of modification or assumption fees, late payment
charges, Prepayment Premiums or Equity Participations on the Mortgage Loans;
(x) all payments required to be deposited in the Certificate Account
with respect to any deductible clause in any blanket insurance policy
described under "--Hazard Insurance Policies";
(xi) any amount required to be deposited by the Master Servicer or the
Trustee in connection with losses realized on investments for the benefit of
the Master Servicer or the Trustee, as the case may be, of funds held in the
Certificate Account; and
(xii) any other amounts required to be deposited in the Certificate
Account as provided in the related Pooling Agreement and described in the
related Prospectus Supplement.
WITHDRAWALS. Unless otherwise provided in the related Pooling Agreement and
described in the related Prospectus Supplement, a Master Servicer, Trustee or
Special Servicer may make withdrawals from the Certificate Account for each
Trust Fund for any of the following purposes:
(i) to make distributions to the Certificateholders on each Distribution
Date;
(ii) to reimburse the Master Servicer or any other specified person for
unreimbursed amounts advanced by it as described under "Description of the
Certificates--Advances in Respect of Delinquencies", such reimbursement to
be made out of amounts received which were identified and applied by the
Master Servicer as late collections of interest (net of related servicing
fees) on and principal of the particular Mortgage Loans with respect to
which the advances were made or out of amounts drawn under any form of
Credit Support with respect to such Mortgage Loans;
(iii) to reimburse the Master Servicer or a Special Servicer for unpaid
servicing fees earned by it and certain unreimbursed servicing expenses
incurred by it with respect to Mortgage Loans in the Trust Fund and
properties acquired in respect thereof, such reimbursement to be made out of
amounts that represent Liquidation Proceeds and Insurance Proceeds collected
on the particular Mortgage Loans and properties, and net income collected on
the particular properties, with respect to
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which such fees were earned or such expenses were incurred or out of amounts
drawn under any form of Credit Support with respect to such Mortgage Loans
and properties;
(iv) to reimburse the Master Servicer or any other specified person for
any advances described in clause (ii) above made by it, any servicing
expenses referred to in clause (iii) above incurred by it and any servicing
fees earned by it, which, in the good faith judgment of the Master Servicer
or such other person, will not be recoverable from the amounts described in
clauses (ii) and (iii), respectively, such reimbursement to be made from
amounts collected on other Mortgage Loans in the related Trust Fund or, if
and to the extent so provided by the related Pooling Agreement and described
in the related Prospectus Supplement, only from that portion of amounts
collected on such other Mortgage Loans that is otherwise distributable on
one or more classes of Subordinate Certificates of the related series;
(v) if and to the extent described in the related Prospectus Supplement,
to pay the Master Servicer, a Special Servicer or another specified entity
(including a provider of Credit Support) interest accrued on the advances
described in clause (ii) above made by it and the servicing expenses
described in clause (iii) above incurred by it while such remain outstanding
and unreimbursed;
(vi) to pay for costs and expenses incurred by the Trust Fund for
environmental site assessments performed with respect to Mortgaged
Properties that constitute security for defaulted Mortgage Loans, and for
any containment, clean-up or remediation of hazardous wastes and materials
present on such Mortgaged Properties, as described under "--Realization Upon
Defaulted Mortgage Loans";
(vii) to reimburse the Master Servicer, the Depositor, or any of their
respective directors, officers, employees and agents, as the case may be,
for certain expenses, costs and liabilities incurred thereby, as and to the
extent described under "--Certain Matters Regarding the Master Servicer and
the Depositor";
(viii) if and to the extent described in the related Prospectus
Supplement, to pay the fees of the Trustee;
(ix) to reimburse the Trustee or any of its directors, officers,
employees and agents, as the case may be, for certain expenses, costs and
liabilities incurred thereby, as and to the extent described under
"--Certain Matters Regarding the Trustee";
(x) to pay the Master Servicer or the Trustee, as additional
compensation, interest and investment income earned in respect of amounts
held in the Certificate Account;
(xi) to pay (generally from related income) for costs incurred in
connection with the operation, management and maintenance of any Mortgaged
Property acquired by the Trust Fund by foreclosure or otherwise;
(xii) if one or more elections have been made to treat the Trust Fund or
designated portions thereof as a REMIC, to pay any federal, state or local
taxes imposed on the Trust Fund or its assets or transactions, as and to the
extent described under "Material Federal Income Tax Consequences--
REMICS--Taxation of Owners of REMIC Residual Certificates--Prohibited
Transactions Tax and Other Taxes";
(xiii) to pay for the cost of an independent appraiser or other expert in
real estate matters retained to determine a fair sale price for a defaulted
Mortgage Loan or a property acquired in respect thereof in connection with
the liquidation of such Mortgage Loan or property;
(xiv) to pay for the cost of various opinions of counsel obtained
pursuant to the related Pooling Agreement for the benefit of
Certificateholders;
(xv) to make any other withdrawals permitted by the related Pooling
Agreement and described in the related Prospectus Supplement; and
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(xvi) to clear and terminate the Certificate Account upon the termination
of the Trust Fund.
COLLECTION AND OTHER SERVICING PROCEDURES
The Master Servicer for any mortgage pool, directly or through
Sub-Servicers, will be required to make reasonable efforts to collect all
scheduled Mortgage Loan payments and will be required to follow such collection
procedures as it would follow with respect to mortgage loans that are comparable
to such Mortgage Loans and held for its own account, provided such procedures
are consistent with (i) the terms of the related Pooling Agreement and any
related instrument of Credit Support included in the related Trust Fund, (ii)
applicable law and (iii) the servicing standard specified in the Pooling
Agreement and in the related Prospectus Supplement (the "Servicing Standard").
The Master Servicer will also be required to perform other customary
functions of a servicer of comparable loans, including maintaining escrow or
impound accounts for payment of taxes, insurance premiums and similar items, or
otherwise monitoring the timely payment of those items; attempting to collect
delinquent payments; supervising foreclosures; conducting property inspections
on a periodic or other basis; managing REO Properties; and maintaining servicing
records relating to the Mortgage Loans. Generally, the Master Servicer will be
responsible for filing and settling claims in respect of particular Mortgage
Loans under any applicable instrument of Credit Support. See "Description of
Credit Support".
MODIFICATIONS, WAIVERS AND AMENDMENTS OF MORTGAGE LOANS
A Master Servicer may agree to modify, waive or amend any term of any
Mortgage Loan serviced by it in a manner consistent with the Servicing Standard;
provided that the modification, waiver or amendment will not (i) affect the
amount or timing of any scheduled payments of principal or interest on the
Mortgage Loan or (ii) in the judgment of the Master Servicer, materially impair
the security for the Mortgage Loan or reduce the likelihood of timely payment of
amounts due thereon. A Master Servicer also may agree to any other modification,
waiver or amendment if, in its judgment (x) a material default on the Mortgage
Loan has occurred or a payment default is imminent and (y) such modification,
waiver or amendment is reasonably likely to produce a greater recovery with
respect to the Mortgage Loan on a present value basis than would liquidation.
SUB-SERVICERS
A Master Servicer may delegate its servicing obligations in respect of the
Mortgage Loans serviced by it to one or more third-party servicers (each, a
"Sub-Servicer"), but the Master Servicer will remain liable for such obligations
under the related Pooling Agreement unless otherwise provided in the related
Prospectus Supplement. Unless otherwise provided in the related Prospectus
Supplement, each sub-servicing agreement between a Master Servicer and a
Sub-Servicer (a "Sub-Servicing Agreement") must provide that, if for any reason
the Master Servicer is no longer acting in such capacity, the Trustee or any
successor Master Servicer may assume the Master Servicer's rights and
obligations under such Sub-Servicing Agreement.
Generally, the Master Servicer will be solely liable for all fees owed by it
to any Sub-Servicer, irrespective of whether the Master Servicer's compensation
pursuant to the related Pooling Agreement is sufficient to pay such fees. Each
Sub-Servicer will be reimbursed by the Master Servicer for certain expenditures
which it makes, generally to the same extent the Master Servicer would be
reimbursed under a Pooling Agreement. See "--Certificate Account" and
"--Servicing Compensation and Payment of Expenses".
SPECIAL SERVICERS
If and to the extent specified in the related Prospectus Supplement, a
special servicer (the "Special Servicer") may be a party to the related Pooling
Agreement or may be appointed by the Master Servicer or
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another specified party to perform certain specified duties (for example, the
servicing of defaulted Mortgage Loans) in respect of the servicing of the
related Mortgage Loans. The Master Servicer will be liable for the performance
of a Special Servicer only if, and to the extent, set forth in such Prospectus
Supplement.
REALIZATION UPON DEFAULTED MORTGAGE LOANS
A borrower's failure to make required Mortgage Loan payments may mean that
operating income is insufficient to service the mortgage debt, or may reflect
the diversion of that income from the servicing of the mortgage debt. In
addition, a borrower that is unable to make Mortgage Loan payments may also be
unable to make timely payment of taxes and to otherwise maintain and insure the
related Mortgaged Property. In general, the related Master Servicer will be
required to monitor any Mortgage Loan that is in default, evaluate whether the
causes of the default can be corrected over a reasonable period without
significant impairment of the value of the related Mortgaged Property, initiate
corrective action in cooperation with the borrower if cure is likely, inspect
the related Mortgaged Property and take such other actions as are consistent
with the Servicing Standard. A significant period of time may elapse before the
Master Servicer is able to assess the success of any such corrective action or
the need for additional initiatives.
The time within which the Master Servicer can make the initial determination
of appropriate action, evaluate the success of corrective action, develop
additional initiatives, institute foreclosure proceedings and actually foreclose
(or accept a deed to a Mortgaged Property in lieu of foreclosure) on behalf of
the Certificateholders may vary considerably depending on the particular
Mortgage Loan, the Mortgaged Property, the borrower, the presence of an
acceptable party to assume the Mortgage Loan and the laws of the jurisdiction in
which the Mortgaged Property is located. If a borrower files a bankruptcy
petition, the Master Servicer may not be permitted to accelerate the maturity of
the related Mortgage Loan or to foreclose on the Mortgaged Property for a
considerable period of time. See "Certain Legal Aspects of Mortgage Loans and
Leases".
A Pooling Agreement may grant to the Master Servicer, a Special Servicer, a
provider of Credit Support and/or the holder or holders of certain classes of
Certificates of the related series a right of first refusal to purchase from the
Trust Fund, at a predetermined purchase price (which, if insufficient to fully
fund the entitlements of Certificateholders to principal and interest thereon,
will be specified in the related Prospectus Supplement), any Mortgage Loan as to
which a specified number of scheduled payments are delinquent. In addition,
unless otherwise specified in the related Prospectus Supplement, the Master
Servicer may offer to sell any defaulted Mortgage Loan if and when the Master
Servicer determines, consistent with the Servicing Standard, that such a sale
would produce a greater recovery on a present value basis than would liquidation
of the related Mortgaged Property. Generally, the related Pooling Agreement will
require that the Master Servicer accept the highest cash bid received from any
person (including itself, an affiliate of the Master Servicer or any
Certificateholder) that constitutes a fair price for such defaulted Mortgage
Loan. In the absence of any bid determined in accordance with the related
Pooling Agreement to be fair, the Master Servicer will generally be required to
proceed with respect to such defaulted Mortgage Loan as described below.
If a default on a Mortgage Loan has occurred or, in the Master Servicer's
judgment, is imminent, the Master Servicer, on behalf of the Trustee, may at any
time institute foreclosure proceedings, exercise any power of sale contained in
the related Mortgage, obtain a deed in lieu of foreclosure, or otherwise acquire
title to the related Mortgaged Property, by operation of law or otherwise, if
such action is consistent with the Servicing Standard. Unless otherwise
specified in the related Prospectus Supplement, the Master Servicer may not,
however, acquire title to any Mortgaged Property or take any other action that
would cause the Trustee, for the benefit of Certificateholders of the related
series, or any other specified person to be considered to hold title to, to be a
"mortgagee-in-possession" of, or to be an "owner" or an "operator" of such
Mortgaged Property within the meaning of certain federal environmental laws,
unless
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the Master Servicer has previously determined, based on a report prepared by a
person who regularly conducts environmental audits (which report will be an
expense of the Trust Fund), that:
(i) either the Mortgaged Property is in compliance with applicable
environmental laws and regulations or, if not, that taking such actions as
are necessary to bring the Mortgaged Property into compliance therewith is
reasonably likely to produce a greater recovery on a present value basis
than not taking such actions; and
(ii) either there are no circumstances or conditions present at the
Mortgaged Property relating to the use, management or disposal of hazardous
materials for which investigation, testing, monitoring, containment, cleanup
or remediation could be required under any applicable environmental laws and
regulations or, if such circumstances or conditions are present for which
any such action could reasonably be expected to be required, taking such
actions with respect to the Mortgaged Property is reasonably likely to
produce a greater recovery on a present value basis than not taking such
actions. See "Certain Legal Aspects of Mortgage Loans and
Leases--Environmental Considerations".
If title to any Mortgaged Property is acquired by a Trust Fund as to which a
REMIC election has been made, the Master Servicer, on behalf of the Trust Fund,
will be required to sell the Mortgaged Property by the end of the third calendar
year following the year of acquisition or unless (i) the Internal Revenue
Service grants an extension of time to sell such property or (ii) the Trustee
receives an opinion of independent counsel to the effect that the holding of the
property by the Trust Fund for more than three years after the end of the
calendar year in which it was acquired will not result in the imposition of a
tax on the Trust Fund or cause the Trust Fund to fail to qualify as a REMIC
under the Code at any time that any Certificate is outstanding. Subject to the
foregoing, the Master Servicer will generally be required to solicit bids for
any Mortgaged Property so acquired in such a manner as will be reasonably likely
to realize a fair price for such property. If the Trust Fund acquires title to
any Mortgaged Property, the Master Servicer, on behalf of the Trust Fund, may
retain an independent contractor to manage and operate such property. The
retention of an independent contractor, however, will not relieve the Master
Servicer of its obligation to manage such Mortgaged Property in a manner
consistent with the Servicing Standard.
If Liquidation Proceeds collected with respect to a defaulted Mortgage Loan
are less than the outstanding principal balance of the defaulted Mortgage Loan
plus interest accrued thereon plus the aggregate amount of reimbursable expenses
incurred by the Master Servicer with respect to such Mortgage Loan, the Trust
Fund will realize a loss in the amount of such difference. The Master Servicer
will be entitled to reimburse itself from the Liquidation Proceeds recovered on
any defaulted Mortgage Loan (prior to the distribution of such Liquidation
Proceeds to Certificateholders), amounts that represent unpaid servicing
compensation in respect of the Mortgage Loan, unreimbursed servicing expenses
incurred with respect to the Mortgage Loan and any unreimbursed advances of
delinquent payments made with respect to the Mortgage Loan.
If any Mortgaged Property suffers damage that the proceeds, if any, of the
related hazard insurance policy are insufficient to fully restore, the Master
Servicer will not be required to expend its own funds to restore the damaged
property unless (and to the extent not otherwise provided in the related
Prospectus Supplement) it determines (i) that such restoration will increase the
proceeds to Certificateholders on liquidation of the Mortgage Loan after
reimbursement of the Master Servicer for its expenses and (ii) that such
expenses will be recoverable by it from related Insurance Proceeds or
Liquidation Proceeds.
HAZARD INSURANCE POLICIES
Each Pooling Agreement may require the related Master Servicer to cause each
Mortgage Loan borrower to maintain a hazard insurance policy that provides for
such coverage as is required under the related Mortgage or, if the Mortgage
permits the holder thereof to dictate to the borrower the insurance coverage to
be maintained on the related Mortgaged Property, such coverage as is consistent
with the requirements of the Servicing Standard. Such coverage generally will be
in an amount equal to the lesser of
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the principal balance owing on such Mortgage Loan and the replacement cost of
the Mortgaged Property, but in either case not less than the amount necessary to
avoid the application of any co-insurance clause contained in the hazard
insurance policy. The ability of the Master Servicer to assure that hazard
insurance proceeds are appropriately applied may be dependent upon its being
named as an additional insured under any hazard insurance policy and under any
other insurance policy referred to below, or upon the extent to which
information concerning covered losses is furnished by borrowers. All amounts
collected by the Master Servicer under any such policy (except for amounts to be
applied to the restoration or repair of the Mortgaged Property or released to
the borrower in accordance with the Master Servicer's normal servicing
procedures and/or to the terms and conditions of the related Mortgage and
Mortgage Note) will be deposited in the related Certificate Account. The Pooling
Agreement may provide that the Master Servicer may satisfy its obligation to
cause each borrower to maintain such a hazard insurance policy by maintaining a
blanket policy insuring against hazard losses on all of the Mortgage Loans in
the related Trust Fund. If such blanket policy contains a deductible clause, the
Master Servicer will be required, in the event of a casualty covered by such
blanket policy, to deposit in the related Certificate Account all sums that
would have been deposited therein but for such deductible clause.
In general, the standard form of fire and extended coverage policy covers
physical damage to or destruction of the improvements of the property by fire,
lightning, explosion, smoke, windstorm and hail, and riot, strike and civil
commotion, subject to the conditions and exclusions specified in each policy.
Although the policies covering the Mortgaged Properties will be underwritten by
different insurers under different state laws in accordance with different
applicable state forms, and therefore will not contain identical terms and
conditions, most such policies typically do not cover any physical damage
resulting from war, revolution, governmental actions, floods and other
water-related causes, earth movement (including earthquakes, landslides and
mudflows), wet or dry rot, vermin, domestic animals and certain other kinds of
risks.
The hazard insurance policies covering the Mortgaged Properties will
typically contain co-insurance clauses that in effect require an insured at all
times to carry insurance of a specified percentage (generally 80% to 90%) of the
full replacement value of the improvements on the property in order to recover
the full amount of any partial loss. If the insured's coverage falls below this
specified percentage, such clauses generally provide that the insurer's
liability in the event of partial loss does not exceed the lesser of (i) the
replacement cost of the improvements less physical depreciation and (ii) such
proportion of the loss as the amount of insurance carried bears to the specified
percentage of the full replacement cost of such improvements.
DUE-ON-SALE AND DUE-ON-ENCUMBRANCE PROVISIONS
Certain of the Mortgage Loans may contain a due-on-sale clause that entitles
the lender to accelerate payment of the Mortgage Loan upon any sale or other
transfer of the related Mortgaged Property made without the lender's consent.
Certain of the Mortgage Loans may also contain a due-on-encumbrance clause that
entitles the lender to accelerate the maturity of the Mortgage Loan upon the
creation of any other lien or encumbrance upon the Mortgaged Property. The
Master Servicer will determine whether to exercise any right the Trustee may
have under any such provision in a manner consistent with the Servicing
Standard. Unless otherwise specified in the related Prospectus Supplement, the
Master Servicer will be entitled to retain as additional servicing compensation
any fee collected in connection with the permitted transfer of a Mortgaged
Property. See "Certain Legal Aspects of Mortgage Loans and Leases--Due-on-Sale
and Due-on Encumbrance".
SERVICING COMPENSATION AND PAYMENT OF EXPENSES
Generally, a Master Servicer's primary servicing compensation with respect
to a series of Certificates will come from the periodic payment to it of a
portion of the interest payments on each Mortgage Loan in the related Trust
Fund. Since that compensation is generally based on a percentage of the
principal balance
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of each such Mortgage Loan outstanding from time to time, it will decrease in
accordance with the amortization of the Mortgage Loans. The Prospectus
Supplement with respect to a series of Certificates may provide that, as
additional compensation, the Master Servicer may retain all or a portion of late
payment charges, Prepayment Premiums, modification fees and other fees collected
from borrowers and any interest or other income that may be earned on funds held
in the Certificate Account. Any Sub-Servicer will receive a portion of the
Master Servicer's compensation as its sub-servicing compensation.
In addition to amounts payable to any Sub-Servicer, a Master Servicer may be
required, to the extent provided in the related Prospectus Supplement, to pay
from amounts that represent its servicing compensation certain expenses incurred
in connection with the administration of the related Trust Fund, including,
without limitation, payment of the fees and disbursements of independent
accountants and payment of expenses incurred in connection with distributions
and reports to Certificateholders. Certain other expenses, including certain
expenses related to Mortgage Loan defaults and liquidations and, to the extent
so provided in the related Prospectus Supplement, interest on such expenses at
the rate specified therein, and the fees of the Trustee and any Special
Servicer, may be required to be borne by the Trust Fund.
If and to the extent provided in the related Prospectus Supplement, the
Master Servicer may be required to apply a portion of the servicing compensation
otherwise payable to it in respect of any period to Prepayment Interest
Shortfalls. See "Yield and Maturity Considerations--Certain Shortfalls in
Collections of Interest".
EVIDENCE AS TO COMPLIANCE
Each Pooling Agreement may require that, on or before a specified date in
each year, the Master Servicer cause a firm of independent public accountants to
furnish a statement to the Trustee to the effect that, based on an examination
by such firm conducted substantially in compliance with either the Uniform
Single Audit Program for Mortgage Bankers or the Audit Program for Mortgages
serviced for FHLMC, the servicing by or on behalf of the Master Servicer of
mortgage loans under pooling and servicing agreements substantially similar to
each other (which may include the related Pooling Agreement) was conducted
through the preceding calendar year or other specified twelve-month period in
compliance with the terms of such agreements except for any significant
exceptions or errors in records that, in the opinion of such firm, either the
Audit Program for Mortgages serviced for FHLMC or paragraph 4 of the Uniform
Single Audit Program for Mortgage Bankers, as the case may be, requires it to
report. Each Pooling Agreement will also provide for delivery to the Trustee, on
or before a specified date in each year, of a statement signed by one or more
officers of the Master Servicer to the effect that the Master Servicer has
fulfilled its material obligations under the Pooling Agreement throughout the
preceding calendar year or other specified twelve-month period.
Copies of the annual accountants' statement and the statement of officers of
a Master Servicer will be made available to Certificateholders without charge
upon written request to the Master Servicer.
CERTAIN MATTERS REGARDING THE MASTER SERVICER AND THE DEPOSITOR
The Master Servicer under a Pooling Agreement may be an affiliate of the
Depositor and may have other normal business relationships with the Depositor or
the Depositor's affiliates. The related Pooling Agreement may permit the Master
Servicer to resign from its obligations thereunder only upon a determination
that such obligations are no longer permissible under applicable law or are in
material conflict by reason of applicable law with any other activities carried
on by it at the date of the Pooling Agreement. No such resignation will become
effective until the Trustee or a successor servicer has assumed the Master
Servicer's obligations and duties under the Pooling Agreement. Unless otherwise
specified in the related Prospectus Supplement, the Master Servicer will also be
required to maintain a fidelity bond and errors and omissions policy that
provides coverage against losses that may be sustained as a result of
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an officer's or employee's misappropriation of funds, errors and omissions or
negligence, subject to certain limitations as to amount of coverage, deductible
amounts, conditions, exclusions and exceptions.
Each Pooling Agreement may further provide that none of the Master Servicer,
the Depositor and any director, officer, employee or agent of either of them
will be under any liability to the related Trust Fund or Certificateholders for
any action taken, or not taken, in good faith pursuant to the Pooling Agreement
or for errors in judgment; provided, however, that none of the Master Servicer,
the Depositor and any such person will be protected against any breach of a
representation, warranty or covenant made in such Pooling Agreement, or against
any expense or liability that such person is specifically required to bear
pursuant to the terms of such Pooling Agreement, or against any liability that
would otherwise be imposed by reason of willful misfeasance, bad faith or gross
negligence in the performance of obligations or duties thereunder or by reason
of reckless disregard of such obligations and duties. Unless otherwise specified
in the related Prospectus Supplement, each Pooling Agreement will further
provide that the Master Servicer, the Depositor and any director, officer,
employee or agent of either of them will be entitled to indemnification by the
related Trust Fund against any loss, liability or expense incurred in connection
with the Pooling Agreement or the related series of Certificates; provided,
however, that such indemnification will not extend to any loss, liability or
expense (i) that such person is specifically required to bear pursuant to the
terms of such agreement, or is incidental to the performance of obligations and
duties thereunder and is not reimbursable pursuant to the Pooling Agreement;
(ii) incurred in connection with any breach of a representation, warranty or
covenant made in the Pooling Agreement; (iii) incurred by reason of misfeasance,
bad faith or gross negligence in the performance of obligations or duties under
the Pooling Agreement, or by reason of reckless disregard of such obligations or
duties; or (iv) incurred in connection with any violation of any state or
federal securities law. In addition, each Pooling Agreement will provide that
neither the Master Servicer nor the Depositor will be under any obligation to
appear in, prosecute or defend any legal action that is not incidental to its
respective responsibilities under the Pooling Agreement and that in its opinion
may involve it in any expense or liability. However, each of the Master Servicer
and the Depositor will be permitted, in the exercise of its discretion, to
undertake any such action that it may deem necessary or desirable with respect
to the enforcement and/or protection of the rights and duties of the parties to
the Pooling Agreement and the interests of the Certificateholders thereunder. In
such event, the legal expenses and costs of such action, and any liability
resulting therefrom, will be expenses, costs and liabilities of the
Certificateholders, and the Master Servicer or the Depositor, as the case may
be, will be entitled to charge the related Certificate Account therefor.
Subject, in certain circumstances, to the satisfaction of certain conditions
that may be required in the related Pooling Agreement, any person into which the
Master Servicer or the Depositor may be merged or consolidated, or any person
resulting from any merger or consolidation to which the Master Servicer or the
Depositor is a party, or any person succeeding to the business of the Master
Servicer or the Depositor, will be the successor of the MasterServicer or the
Depositor, as the case may be, under the related Pooling Agreement.
EVENTS OF DEFAULT
An "Event of Default" for a Series of Certificates under the related Pooling
Agreement generally will include (i) any failure by the Master Servicer to
distribute or cause to be distributed to Certificateholders, or to remit to the
Trustee for distribution to Certificateholders in a timely manner, any amount
required to be so distributed or remitted, which failure continues unremedied
for five days after written notice of such failure has been given to the Master
Servicer by the Trustee or the Depositor, or to the Master Servicer, the
Depositor and the Trustee by Certificateholders entitled to not less than 25%
(or such other percentage specified in the related Prospectus Supplement) of the
Voting Rights for such series, (ii) any failure by the Master Servicer duly to
observe or perform in any material respect any of its other covenants or
obligations under the Pooling Agreement which continues unremedied for 60 days
after written notice of such failure has been given to the Master Servicer by
the Trustee or the Depositor, or to the Master
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Servicer, the Depositor and the Trustee by Certificateholders entitled to not
less than 25% (or such other percentage specified in the related Prospectus
Supplement) of the Voting Rights for such series; and (iii) certain events of
insolvency, readjustment of debt, marshalling of assets and liabilities or
similar proceedings in respect of or relating to the Master Servicer and certain
actions by or on behalf of the Master Servicer indicating its insolvency or
inability to pay its obligations. Material variations to the foregoing Events of
Default (other than to add thereto or shorten cure periods or eliminate notice
requirements) will be specified in the related Prospectus Supplement.
RIGHTS UPON EVENT OF DEFAULT
So long as an Event of Default under a Pooling Agreement remains unremedied,
the Depositor or the Trustee will be authorized, and at the direction of
Certificateholders entitled to not less than 51% (or such other percentage
specified in the related Prospectus Supplement) of the Voting Rights for such
series, the Trustee will be required, to terminate all of the rights and
obligations of the Master Servicer as master servicer under the Pooling
Agreement, whereupon the Trustee will succeed to all of the responsibilities,
duties and liabilities of the Master Servicer under the Pooling Agreement
(except that if the Master Servicer is required to make advances in respect of
Mortgage Loan delinquencies, but the Trustee is prohibited by law from
obligating itself to do so, or if the related Prospectus Supplement so
specifies, the Trustee will not be obligated to make such advances) and will be
entitled to similar compensation arrangements. If the Trustee is unwilling or
unable so to act, it may (or, at the written request of Certificateholders
entitled to at least 51% (or such other percentage specified in the related
Prospectus Supplement) of the Voting Rights for such series, it will be required
to) appoint, or petition a court of competent jurisdiction to appoint, a loan
servicing institution that (unless otherwise provided in the related Prospectus
Supplement) is acceptable to each Rating Agency that assigned ratings to the
Offered Certificates of such series to act as successor to the Master Servicer
under the Pooling Agreement. Pending such appointment, the Trustee will be
obligated to act in such capacity.
No Certificateholder will have the right under any Pooling Agreement to
institute any proceeding with respect thereto unless such holder previously has
given to the Trustee written notice of default and unless Certificateholders
entitled to at least 25% (or such other percentage specified in the related
Prospectus Supplement) of the Voting Rights for the related series shall have
made written request upon the Trustee to institute such proceeding in its own
name as Trustee thereunder and shall have offered to the Trustee reasonable
indemnity, and the Trustee for 60 days (or such other period specified in the
related Prospectus Supplement) shall have neglected or refused to institute any
such proceeding. The Trustee, however, will be under no obligation to exercise
any of the trusts or powers vested in it by any Pooling Agreement or to make any
investigation of matters arising thereunder or to institute, conduct or defend
any litigation thereunder or in relation thereto at the request, order or
direction of any of the holders of Certificates of the related series, unless
such Certificateholders have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities which may be incurred
therein or thereby.
AMENDMENT
Each Pooling Agreement may be amended by the parties thereto, without the
consent of any of the holders of the related Certificates, (i) to cure any
ambiguity, (ii) to correct a defective provision therein or to correct, modify
or supplement any provision therein that may be inconsistent with any other
provision therein, (iii) to add any other provisions with respect to matters or
questions arising under the Pooling Agreement that are not inconsistent with the
provisions thereof, (iv) to comply with any requirements imposed by the Code or
(v) for any other purpose; provided that such amendment (other than an amendment
for the purpose specified in clause (iv) above) may not (as evidenced by an
opinion of counsel to such effect satisfactory to the Trustee) adversely affect
in any material respect the interests of any such holder. Each Pooling Agreement
may also be amended for any purpose by the parties, with the consent of
Certificateholders entitled to at least 51% (or such other percentage specified
in the related Prospectus
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Supplement) of the Voting Rights for the related series allocated to the
affected classes; provided, however, that no such amendment may (x) reduce in
any manner the amount of, or delay the timing of, payments received or advanced
on Mortgage Loans that are required to be distributed in respect of any
Certificate without the consent of the holder of such Certificate, (y) adversely
affect in any material respect the interests of the holders of any class of
Certificates, in a manner other than as described in clause (x), without the
consent of the holders of all Certificates of such class or (z) modify the
provisions of the Pooling Agreement described in this paragraph without the
consent of the holders of all Certificates of the related series. However,
unless otherwise specified in the related Pooling Agreement, the Trustee will be
prohibited from consenting to any amendment of a Pooling Agreement pursuant to
which a REMIC election is to be or has been made unless the Trustee shall first
have received an opinion of counsel to the effect that such amendment will not
result in the imposition of a tax on the related Trust Fund or cause the related
Trust Fund to fail to qualify as a REMIC at any time that the related
Certificates are outstanding.
LIST OF CERTIFICATEHOLDERS
Upon written request of any Certificateholder of record made for purposes of
communicating with other holders of Certificates of the same series with respect
to their rights under the related Pooling Agreement, the Trustee or other
specified person will afford such Certificateholder access, during normal
business hours, to the most recent list of Certificateholders of that series
then maintained by such person.
THE TRUSTEE
The Trustee under each Pooling Agreement will be named in the related
Prospectus Supplement. The commercial bank, national banking association,
banking corporation or trust company that serves as Trustee may have typical
banking relationships with the Depositor and its affiliates and with any Master
Servicer and its affiliates.
DUTIES OF THE TRUSTEE
The Trustee for a series of Certificates will make no representation as to
the validity or sufficiency of the related Pooling Agreement, the Certificates
or any Mortgage Loan or related document and will not be accountable for the use
or application by or on behalf of any Master Servicer of any funds paid to the
Master Servicer or any Special Servicer in respect of the Certificates or the
Mortgage Loans, or any funds deposited into or withdrawn from the Certificate
Account or any other account by or on behalf of the Master Servicer or any
Special Servicer. If no Event of Default has occurred and is continuing, the
Trustee will be required to perform only those duties specifically required
under the related Pooling Agreement. However, upon receipt of any of the various
certificates, reports or other instruments required to be furnished to it
pursuant to the Pooling Agreement, the Trustee will be required to examine such
documents and to determine whether they conform to the requirements of the
Pooling Agreement.
CERTAIN MATTERS REGARDING THE TRUSTEE
The Trustee for a series of Certificates may be entitled to indemnification,
from amounts held in the related Certificate Account, for any loss, liability or
expense incurred by the Trustee in connection with the Trustee's acceptance or
administration of its trusts under the related Pooling Agreement; provided,
however, that such indemnification will not extend to any loss, liability or
expense that constitutes a specific liability imposed on the Trustee pursuant to
the Pooling Agreement, or to any loss, liability or expense incurred by reason
of willful misfeasance, bad faith or negligence on the part of the Trustee in
the performance of its obligations and duties thereunder, or by reason of its
reckless disregard of such obligations or duties, or as may arise from a breach
of any representation, warranty or covenant of the Trustee made therein. As and
to the extent described in the related Prospectus Supplement, the fees and
normal disbursements of any Trustee may be the expense of the related Master
Servicer or other specified person or may be required to be borne by the related
Trust Fund.
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RESIGNATION AND REMOVAL OF THE TRUSTEE
The Trustee for a series of Certificates will be permitted at any time to
resign from its obligations and duties under the related Pooling Agreement by
giving written notice thereof to the Depositor. Upon receiving such notice of
resignation, the Master Servicer (or such other person as may be specified in
the related Prospectus Supplement) will be required to use reasonable efforts to
promptly appoint a successor trustee. If no successor trustee shall have
accepted an appointment within a specified period after the giving of such
notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction to appoint a successor trustee.
Unless otherwise provided in the related Prospectus Supplement, if at any
time the Trustee ceases to be eligible to continue as such under the related
Pooling Agreement, or if at any time the Trustee becomes incapable of acting, or
if certain events of (or proceedings in respect of) bankruptcy or insolvency
occur with respect to the Trustee, the Depositor will be authorized to remove
the Trustee and appoint a successor trustee. In addition, unless otherwise
provided in the related Prospectus Supplement, holders of the Certificates of
any series entitled to at least 51% (or such other percentage specified in the
related Prospectus Supplement) of the Voting Rights for such series may at any
time (with or without cause) remove the Trustee and appoint a successor trustee.
Any resignation or removal of the Trustee and appointment of a successor
trustee will not become effective until acceptance of appointment by the
successor trustee.
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DESCRIPTION OF CREDIT SUPPORT
GENERAL
Credit Support may be provided with respect to one or more classes of the
Certificates of any series, or with respect to the related Mortgage Assets.
Credit Support may be in the form of overcollateralization, a letter of credit,
the subordination of one or more classes of Certificates, the use of a pool
insurance policy or guarantee insurance, the establishment of one or more
reserve funds or another method of Credit Support described in the related
Prospectus Supplement, or any combination of the foregoing. If so provided in
the related Prospectus Supplement, any form of Credit Support may provide credit
enhancement for more than one series of Certificates to the extent described
therein.
The Credit Support generally will not provide protection against all risks
of loss and will not guarantee payment to Certificateholders of all amounts to
which they are entitled under the related Pooling Agreement. If losses or
shortfalls occur that exceed the amount covered by the Credit Support or that
are not covered by the Credit Support, Certificateholders will bear their
allocable share of deficiencies. Moreover, if a form of Credit Support covers
more than one series of Certificates, holders of Certificates of one series will
be subject to the risk that such Credit Support will be exhausted by the claims
of the holders of Certificates of one or more other series before the former
receive their intended share of such coverage.
If Credit Support is provided with respect to one or more classes of
Certificates of a series, or with respect to the related Mortgage Assets, the
related Prospectus Supplement will include a description of (i) the nature and
amount of coverage under such Credit Support, (ii) any conditions to payment
thereunder not otherwise described herein, (iii) the conditions (if any) under
which the amount of coverage under such Credit Support may be reduced and under
which such Credit Support may be terminated or replaced and (iv) the material
provisions relating to such Credit Support. Additionally, the related Prospectus
Supplement will set forth certain information with respect to the obligor under
any instrument of Credit Support, generally including (w) a brief description of
its principal business activities, (x) its principal place of business, place of
incorporation and the jurisdiction under which it is chartered or licensed to do
business, (y) if applicable, the identity of the regulatory agencies that
exercise primary jurisdiction over the conduct of its business and (z) its total
assets, and its stockholders equity or policyholders' surplus, if applicable, as
of a date that will be specified in the Prospectus Supplement. See "Risk
Factors--Credit Support Limitations".
SUBORDINATE CERTIFICATES
If so specified in the related Prospectus Supplement, one or more classes of
Certificates of a series may be Subordinate Certificates. To the extent
specified in the related Prospectus Supplement, the rights of the holders of
Subordinate Certificates to receive distributions from the Certificate Account
on any Distribution Date will be subordinated to the corresponding rights of the
holders of Senior Certificates. If so provided in the related Prospectus
Supplement, the subordination of a class may apply only in the event of (or may
be limited to) certain types of losses or shortfalls. The related Prospectus
Supplement will set forth information concerning the amount of subordination
provided by a class or classes of Subordinate Certificates in a series, the
circumstances under which such subordination will be available and the manner in
which the amount of subordination will be made available.
CROSS-SUPPORT PROVISIONS
If the Mortgage Assets in any Trust Fund are divided into separate groups,
each supporting a separate class or classes of Certificates of a series, Credit
Support may be provided by cross-support provisions requiring that distributions
be made on Senior Certificates evidencing interests in one group of Mortgage
Assets prior to distributions on Subordinate Certificates evidencing interests
in a different group of
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Mortgage Assets within the Trust Fund. The Prospectus Supplement for a series
that includes a cross-support provision will describe the manner and conditions
for applying such provisions.
INSURANCE OR GUARANTEES WITH RESPECT TO MORTGAGE LOANS
If so provided in the Prospectus Supplement for a series of Certificates,
Mortgage Loans included in the related Trust Fund will be covered for certain
default risks by insurance policies or guarantees. To the extent material, a
copy of each such instrument will accompany the Current Report on Form 8-K to be
filed with the Commission within 15 days of issuance of the Certificates of the
related series.
LETTER OF CREDIT
If so provided in the Prospectus Supplement for a series of Certificates,
deficiencies in amounts otherwise payable on such Certificates or certain
classes thereof will be covered by one or more letters of credit, issued by a
bank or financial institution specified in such Prospectus Supplement (the "L/C
Bank"). Under a letter of credit, the L/C Bank will be obligated to honor draws
thereunder in an aggregate fixed dollar amount, net of unreimbursed payments
thereunder, generally equal to a percentage specified in the related Prospectus
Supplement of the aggregate principal balance of the Mortgage Assets on the
related Cut-off Date or of the initial aggregate Certificate Balance of one or
more classes of Certificates. If so specified in the related Prospectus
Supplement, the letter of credit may permit draws only in the event of certain
types of losses and shortfalls. The amount available under the letter of credit
will, in all cases, be reduced to the extent of the unreimbursed payments
thereunder and may otherwise be reduced as described in the related Prospectus
Supplement. The obligations of the L/C Bank under the letter of credit for each
series of Certificates will expire at the earlier of the date specified in the
related Prospectus Supplement or the termination of the Trust Fund. A copy of
any such letter of credit will accompany the Current Report on Form 8-K to be
filed with the Commission within 15 days of issuance of the Certificates of the
related series.
CERTIFICATE INSURANCE AND SURETY BONDS
If so provided in the Prospectus Supplement for a series of Certificates,
deficiencies in amounts otherwise payable on such Certificates or certain
classes thereof will be covered by insurance policies and/ or surety bonds
provided by one or more insurance companies or sureties. Such instruments may
cover, with respect to one or more classes of Certificates of the related
series, timely distributions of interest and/ or full distributions of principal
on the basis of a schedule of principal distributions set forth in or determined
in the manner specified in the related Prospectus Supplement. A copy of any such
instrument will accompany the Current Report on Form 8-K to be filed with the
Commission within 15 days of issuance of the Certificates of the related series.
RESERVE FUNDS
If so provided in the Prospectus Supplement for a series of Certificates,
deficiencies in amounts otherwise payable on such Certificates or certain
classes thereof will be covered (to the extent of available funds) by one or
more reserve funds in which cash, a letter of credit, Permitted Investments, a
demand note or a combination thereof will be deposited, in the amounts specified
in such Prospectus Supplement. If so specified in the related Prospectus
Supplement, the reserve fund for a series may also be funded over time by a
specified amount of the collections received on the related Mortgage Assets.
Amounts on deposit in any reserve fund for a series, together with the
reinvestment income thereon, if any, will be applied for the purposes, in the
manner, and to the extent specified in the related Prospectus Supplement. If so
specified in the related Prospectus Supplement, reserve funds may be established
to provide protection only against certain types of losses and shortfalls.
Following each Distribution Date,
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amounts in a reserve fund in excess of any amount required to be maintained
therein may be released from the reserve fund under the conditions and to the
extent specified in the related Prospectus Supplement.
If so specified in the related Prospectus Supplement, amounts deposited in
any reserve fund will be invested in Permitted Investments. Unless otherwise
specified in the related Prospectus Supplement, any reinvestment income or other
gain from such investments will be credited to the related reserve fund for such
series, and any loss resulting from such investments will be charged to such
reserve fund. However, such income may be payable to any related Master Servicer
or another service provider as additional compensation for its services. The
reserve fund, if any, for a series will not be a part of the Trust Fund unless
otherwise specified in the related Prospectus Supplement.
CREDIT SUPPORT WITH RESPECT TO CMBS
If so provided in the Prospectus Supplement for a series of Certificates,
any CMBS included in the related Trust Fund and/or the related underlying
mortgage loans may be covered by one or more of the types of Credit Support
described herein. The related Prospectus Supplement for any series of
Certificates evidencing an interest in a Trust Fund that includes CMBS will
describe to the extent information is available and deemed material, any similar
forms of Credit Support that are provided by or with respect to, or are included
as part of the trust fund evidenced by or providing security for, such CMBS. The
type, characteristic and amount of Credit Support will be determined based on
the characteristics of the Mortgage Assets and other factors and will be
established, in part, on the basis of requirements of each Rating Agency rating
the Certificates of such series. If so specified in the related Prospectus
Supplement, any such Credit Support may apply only in the event of certain types
of losses or delinquencies and the protection against losses or delinquencies
provided by such Credit Support will be limited.
CERTAIN LEGAL ASPECTS OF MORTGAGE LOANS AND LEASES
The following discussion contains general summaries of certain legal aspects
of loans secured by commercial and multifamily residential properties. Because
such legal aspects are governed by applicable state law (which laws may differ
substantially), the summaries do not purport to be complete, to reflect the laws
of any particular state, or to encompass the laws of all states in which the
security for the Mortgage Loans (or mortgage loans underlying any CMBS) is
situated. Accordingly, the summaries are qualified in their entirety by
reference to the applicable laws of those states. See "Description of the Trust
Funds-- Mortgage Loans--Leases". For purposes of the following discussion,
"Mortgage Loan" includes a mortgage loan underlying a CMBS.
GENERAL
Each Mortgage Loan will be evidenced by a note or bond and secured by an
instrument granting a security interest in real property, which may be a
mortgage, deed of trust or a deed to secure debt, depending upon the prevailing
practice and law in the state in which the related Mortgaged Property is
located. Mortgages, deeds of trust and deeds to secure debt are herein
collectively referred to as "mortgages". A mortgage creates a lien upon, or
grants a title interest in, the real property covered thereby, and represents
the security for the repayment of the indebtedness customarily evidenced by a
promissory note. The priority of the lien created or interest granted will
depend on the terms of the mortgage and, in some cases, on the terms of separate
subordination agreements or intercreditor agreements with others that hold
interests in the real property, the knowledge of the parties to the mortgage
and, generally, the order of recordation of the mortgage in the appropriate
public recording office. However, the lien of a recorded mortgage will generally
be subordinate to later-arising liens for real estate taxes and assessments and
other charges imposed under governmental police powers. Additionally, in some
states, mechanic's and materialman's liens have priority over mortgage liens.
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The mortgagee's authority under a mortgage, the trustee's authority under a
deed of trust and the grantee's authority under a deed to secure debt are
governed by the express provisions of the related instrument, the law of the
state in which the real property is located, certain federal laws (including,
without limitation, the Soldiers' and Sailors' Civil Relief Act of 1940) and, in
some deed of trust transactions, the directions of the beneficiary.
TYPES OF MORTGAGE INSTRUMENTS
There are two parties to a mortgage: a mortgagor (the borrower and usually
the owner of the subject property) and a mortgagee (the lender). In a mortgage,
the mortgagor grants a lien on the subject property in favor of the mortgagee. A
deed of trust is a three-party instrument, among a trustor (the equivalent of a
borrower), a trustee to whom the real property is conveyed, and a beneficiary
(the lender) for whose benefit the conveyance is made. Under a deed of trust,
the trustor grants the property to the trustee, in trust, irrevocably until the
debt is paid, and generally with a power of sale. A deed to secure debt
typically has two parties. The borrower, or grantor, conveys title to the real
property to the grantee, or lender, generally with a power of sale, until such
time as the debt is repaid. In a case where the borrower is a land trust, there
would be an additional party to a mortgage instrument because legal title to the
property is held by a land trustee under a land trust agreement for the benefit
of the borrower. At origination of a mortgage loan involving a land trust, the
borrower generally executes a separate undertaking to make payments on the
mortgage note. The mortgagee's authority under a mortgage, the trustee's
authority under a deed of trust and the grantee's authority under a deed to
secure debt are governed by the express provisions of the related instrument,
the law of the state in which the real property is located, certain federal laws
and, in some deed of trust transactions, the directions of the beneficiary.
References herein and in any Prospectus Supplement to "mortgage" shall include a
mortgage, a deed of trust or a deed to secure debt, as the case may be.
LEASES AND RENTS
Mortgages that encumber income-producing property often contain an
assignment of rents and leases, pursuant to which the borrower assigns to the
lender the borrower's right, title and interest as landlord under each lease and
the income derived therefrom, while (unless rents are to be paid directly to the
lender) retaining a revocable license to collect the rents for so long as there
is no default. If the borrower defaults, the license terminates and the lender
is entitled to collect the rents. Local law may require that the lender take
possession of the property and/or obtain a court-appointed receiver before
becoming entitled to collect the rents.
In most states, hotel and motel room rates are considered accounts
receivable under the Uniform Commercial Code ("UCC"); in cases where hotels or
motels constitute loan security, the rates are generally pledged by the borrower
as additional security for the loan. In general, the lender must file financing
statements in order to perfect its security interest in the rates and must file
continuation statements, generally every five years, to maintain perfection of
such security interest. Even if the lender's security interest in room rates is
perfected under the UCC, it will generally be required to commence a foreclosure
action or otherwise take possession of the property in order to collect the room
rates following a default. See "--Bankruptcy Laws".
PERSONALTY
In the case of certain types of mortgaged properties, such as hotels, motels
and nursing homes, personal property (to the extent owned by the borrower and
not previously pledged) may constitute a significant portion of the property's
value as security. The creation and enforcement of liens on personal property
are governed by the UCC. Accordingly, if a borrower pledges personal property as
security for a mortgage loan, the lender generally must file UCC financing
statements in order to perfect its security
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interest therein, and must file continuation statements, generally every five
years, to maintain that perfection.
COOPERATIVE LOANS
If specified in the related Prospectus Supplement, the Mortgage Loans may
consist of loans secured by "blanket mortgages" on the property owned by
cooperative housing corporations (each a "Cooperative"). If specified in the
related Prospectus Supplement, the Mortgage Loans may consist of cooperative
apartment loans ("Cooperative Loans") secured by security interests in shares
issued by Cooperatives and in the related proprietary leases or occupancy
agreements granting exclusive rights to occupy specific dwelling units in the
Cooperatives' buildings. The security agreement will create a lien upon, or
grant a title interest in, the property which it covers, the priority of which
will depend on the terms of the particular security agreement as well as the
order of recordation of the agreement in the appropriate recording office. Such
a lien or title interest is not prior to the lien for real estate taxes and
assessments and other charges imposed under governmental police powers.
A Cooperative generally owns in fee or has a leasehold interest in land and
owns in fee or leases the building or buildings thereon and all separate
dwelling units in the buildings. The Cooperative is owned by tenant-stockholders
who, through ownership of stock or shares in the corporation, receive
proprietary lease or occupancy agreements which confer exclusive rights to
occupy specific units. Generally, a tenant-stockholder of a Cooperative must
make a monthly payment to the Cooperative representing such tenant-stockholder's
pro rata share of the Cooperative's payments for its blanket mortgage, real
property taxes, maintenance expenses and other capital or ordinary expenses. The
Cooperative is directly responsible for property management and, in most cases,
payment of real estate taxes, other governmental impositions and hazard and
liability insurance. If there is a blanket mortgage or mortgages on the
Cooperative apartment building or underlying land, as is generally the case, or
an underlying lease of the land, as is the case in some instances, the
Cooperative, as property mortgagor, or lessee, as the case may be, is also
responsible for meeting these mortgage or rental obligations. A blanket mortgage
is ordinarily incurred by the Cooperative in connection with either the
construction or purchase of the Cooperative's apartment building or obtaining of
capital by the Cooperative. The interest of the occupant under proprietary
leases or occupancy agreements as to which that Cooperative is the landlord are
generally subordinate to the interest of the holder of a blanket mortgage and to
the interest of the holder of a land lease. If the Cooperative is unable to meet
the payment obligations (i) arising under a blanket mortgage, the mortgagee
holding a blanket mortgage could foreclose on that mortgage and terminate all
subordinate proprietary leases and occupancy agreements, or (ii) arising under
its land lease, the holder of the landlord's interest under the land lease could
terminate it and all subordinate proprietary leases and occupancy agreements.
Also, a blanket mortgage on a Cooperative may provide financing in the form of a
mortgage that does not fully amortize, with a significant portion of principal
being due in one final payment at maturity. The inability of the Cooperative to
refinance a mortgage and its consequent inability to make such final payment
could lead to foreclosure by the mortgagee. Similarly, a land lease has an
expiration date and the inability of the Cooperative to extend its term, or, in
the alternative, to purchase the land, could lead to termination of the
Cooperatives' interest in the property and termination of all proprietary leases
and occupancy agreements. Upon foreclosure of a blanket mortgage on a
Cooperative, the lender would normally be required to take the Mortgaged
Property subject to state and local regulations that afford tenants who are not
shareholders various rent control and other protections. A foreclosure by the
holder of a blanket mortgage or the termination of the underlying lease could
eliminate or significantly diminish the value of any collateral held by a party
who financed the purchase of cooperative shares by an individual tenant
stockholder.
An ownership interest in a Cooperative and accompanying occupancy rights are
financed through a cooperative share loan evidenced by a promissory note and
secured by an assignment of and a security interest in the occupancy agreement
or proprietary lease and a security interest in the related cooperative
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shares. The lender generally takes possession of the share certificate and a
counterpart of the proprietary lease or occupancy agreement and a financing
statement covering the proprietary lease or occupancy agreement and the
cooperative shares are filed in the appropriate state and local offices to
perfect the lender's interest in its collateral. Subject to the limitations
discussed below, upon default of the tenant-stockholder, the lender may sue for
judgment on the promissory note, dispose of the collateral at a public or
private sale or otherwise proceed against the collateral or tenant-stockholder
as an individual as provided in the security agreement covering the assignment
of the proprietary lease or occupancy agreement and the pledge of cooperative
shares. See "--Foreclosure--Cooperative Loans" below.
JUNIOR MORTGAGES; RIGHTS OF SENIOR LENDERS
Some of the Mortgage Loans included in a Trust Fund may be secured by
mortgage instruments that are subordinate to mortgage instruments held by other
lenders. The rights of the Trust Fund (and therefore the Certificateholders), as
holder of a junior mortgage instrument, are subordinate to those of the senior
lender, including the prior rights of the senior lender to receive rents, hazard
insurance and condemnation proceeds and to cause the Mortgaged Property to be
sold upon borrower's default and thereby extinguish the Trust Fund's junior lien
unless the Master Servicer or Special Servicer asserts its subordinate interest
in a property in a foreclosure litigation or satisfies the defaulted senior
loan. As discussed more fully below, in many states a junior lender may satisfy
a defaulted senior loan in full, adding the amounts expended to the balance due
on the junior loan. Absent a provision in the senior mortgage instrument, no
notice of default is required to be given to the junior lender.
The form of the mortgage instrument used by many institutional lenders
confers on the lender the right both to receive all proceeds collected under any
hazard insurance policy and all awards made in connection with any condemnation
proceedings, and (subject to any limits imposed by applicable state law) to
apply such proceeds and awards to any indebtedness secured by the mortgage
instrument in such order as the lender may determine. Thus, if improvements on a
property are damaged or destroyed by fire or other casualty, or if the property
is taken by condemnation, the holder of the senior mortgage instrument will have
the prior right to collect any insurance proceeds payable under a hazard
insurance policy and any award of damages in connection with the condemnation
and to apply the same to the senior indebtedness. Accordingly, only the proceeds
in excess of the amount of senior indebtedness will be available to be applied
to the indebtedness secured by a junior mortgage instrument.
The form of mortgage instrument used by many institutional lenders typically
contains a "future advance" clause, which provides, in general, that additional
amounts advanced to or on behalf of the mortgagor or trustor by the mortgagee or
beneficiary are to be secured by the mortgage instrument. While such a clause is
valid under the laws of most states, the priority of any advance made under the
clause depends, in some states, on whether the advance was an "obligatory" or an
"optional" advance. If the lender is obligated to advance the additional
amounts, the advance may be entitled to receive the same priority as the amounts
advanced at origination, notwithstanding that intervening junior liens may have
been recorded between the date of recording of the senior mortgage instrument
and the date of the future advance, and notwithstanding that the senior lender
had actual knowledge of such intervening junior liens at the time of the
advance. Where the senior lender is not obligated to advance the additional
amounts and has actual knowledge of the intervening junior liens, the advance
may be subordinate to such intervening junior liens. Priority of advances under
a "future advance" clause rests, in many other states, on state law giving
priority to all advances made under the loan agreement up to a "credit limit"
amount stated in the recorded mortgage.
Another provision typically found in the form of mortgage instrument used by
many institutional lenders permits the lender to itself perform certain
obligations of the borrower (for example, the obligations to pay when due all
taxes and assessments on the property and, when due, all encumbrances, charges
and liens on the property that are senior to the lien of the mortgage
instrument, to maintain hazard insurance on the property, and to maintain and
repair the property) upon a failure of the borrower
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to do so, with all sums so expended by the lender becoming part of the
indebtedness secured by the mortgage instrument.
The form of mortgage instrument used by many institutional lenders typically
requires the borrower to obtain the consent of the lender in respect of actions
affecting the mortgaged property, including the execution of new leases and the
termination or modification of existing leases, the performance of alterations
to buildings forming a part of the mortgaged property and the execution of
management and leasing agreements for the mortgaged property. Tenants will often
refuse to execute leases unless the lender executes a written agreement with the
tenant not to disturb the tenant's possession of its premises in the event of a
foreclosure. A senior lender may refuse to consent to matters approved by a
junior lender, with the result that the value of the security for the junior
mortgage instrument is diminished.
FORECLOSURE
GENERAL. Foreclosure is a legal procedure that allows the lender to seek to
recover its mortgage debt by enforcing its rights and available legal remedies
under the mortgage in respect of the mortgaged property. If the borrower
defaults in payment or performance of its obligations under the note or
mortgage, the lender has the right to institute foreclosure proceedings to sell
the real property at public auction to satisfy the indebtedness.
FORECLOSURE PROCEDURES VARY FROM STATE TO STATE. Two primary methods of
foreclosing a mortgage are judicial foreclosure, involving court proceedings,
and non-judicial foreclosure pursuant to a power of sale usually granted in the
mortgage instrument. Other foreclosure procedures are available in some states,
but they are either infrequently used or available only in limited
circumstances.
A foreclosure action is subject to most of the delays and expenses of other
lawsuits if defenses are raised or counterclaims are interposed, and sometimes
requires years to complete. Moreover, the filing by or against the
borrower-mortgagor of a bankruptcy petition would impose an automatic stay on
such proceedings and could further delay a foreclosure sale.
JUDICIAL FORECLOSURE. A judicial foreclosure proceeding is conducted in a
court having jurisdiction over the mortgaged property. Generally, the action is
initiated by the service of legal pleadings upon all parties having a
subordinate interest of record in the real property and all parties in
possession of the property, under leases or otherwise, whose interests are
subordinate to the mortgage. Delays in completion of the foreclosure may
occasionally result from difficulties in locating proper defendants. As stated
above, if the lender's right to foreclose is contested by any defendant, the
legal proceedings may be time-consuming. In addition, judicial foreclosure is a
proceeding in equity and, therefore, equitable defenses may be raised against
the foreclosure. Upon successful completion of a judicial foreclosure
proceeding, the court generally issues a judgment of foreclosure and appoints a
referee or other officer to conduct a public sale of the mortgaged property, the
proceeds of which are used to satisfy the judgment. Such sales are made in
accordance with procedures that vary from state to state.
NON-JUDICIAL FORECLOSURE/POWER OF SALE. Foreclosure of a deed of trust is
generally accomplished by a non-judicial trustee's sale pursuant to a power of
sale typically granted in the deed of trust. A power of sale may also be
contained in any other type of mortgage instrument if applicable law so permits.
A power of sale under a deed of trust or mortgage allows a non-judicial public
sale to be conducted generally following a request from the beneficiary/lender
to the trustee to sell the property upon default by the borrower and after
notice of sale is given in accordance with the terms of the mortgage and
applicable state law. In some states, prior to such sale, the trustee under the
deed of trust must record a notice of default and notice of sale and send a copy
to the borrower and to any other party who has recorded a request for a copy of
a notice of default and notice of sale. In addition, in some states the trustee
must provide notice to any other party having an interest of record in the real
property, including junior lienholders. A notice of sale must be posted in a
public place and, in most states, published for a specified period of time in
one or more
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newspapers. The borrower or a junior lienholder may then have the right, during
a reinstatement period required in some states, to cure the default by paying
the entire actual amount in arrears (without regard to the acceleration of the
indebtedness), plus the lender's expenses incurred in enforcing the obligation.
In other states, the borrower or the junior lienholder is not provided a period
to reinstate the loan, but has only the right to pay off the entire debt to
prevent the foreclosure sale. In addition to such cure rights, in most
jurisdictions, the borrower-mortgagor or a subordinate lienholder can seek to
enjoin the non-judicial foreclosure by commencing a court proceeding. Generally,
state law governs the procedure for public sale, the parties entitled to notice,
the method of giving notice and the applicable time periods.
Both judicial and non-judicial foreclosures may result in the termination of
leases at the mortgaged property, which in turn could result in the reduction in
the income for such property. Some of the factors that will determine whether or
not a lease will be terminated by a foreclosure are: the provisions of
applicable state law, the priority of the mortgage vis-a-vis the lease in
question, the terms of the lease and the terms of any subordination,
non-disturbance and attornment agreement between the tenant under the lease and
the mortgagee.
EQUITABLE LIMITATIONS ON ENFORCEABILITY OF CERTAIN PROVISIONS. United
States courts have traditionally imposed general equitable principles to limit
the remedies available to lenders in foreclosure actions. These principles are
generally designed to relieve borrowers from the effects of mortgage defaults
perceived as harsh or unfair. Relying on such principles, a court may alter the
specific terms of a loan to the extent it considers necessary to prevent or
remedy an injustice, undue oppression or overreaching, or may require the lender
to undertake affirmative actions to determine the cause of the borrower's
default and the likelihood that the borrower will be able to reinstate the loan.
In some cases, courts have substituted their judgment for the lender's and have
required that lenders reinstate loans or recast payment schedules in order to
accommodate borrowers who are suffering from a temporary financial disability.
In other cases, courts have limited the right of the lender to foreclose in the
case of a non-monetary default, such as a failure to adequately maintain the
mortgaged property or placing a subordinate mortgage or other encumbrance upon
the mortgaged property. Finally, some courts have addressed the issue of whether
federal or state constitutional provisions reflecting due process concerns for
adequate notice require that a borrower receive notice in addition to
statutorily prescribed minimum notice. For the most part, these cases have
upheld the reasonableness of the notice provisions or have found that a public
sale under a mortgage providing for a power of sale does not involve sufficient
state action to trigger constitutional protections.
PUBLIC SALE. A third party may be unwilling to purchase a mortgaged
property at a public sale for a number of reasons, including the difficulty in
determining the exact status of title to the property (due to, among other
things, redemption rights that may exist) and because of the possibility that
physical deterioration of the property may have occurred during the foreclosure
proceedings. Potential buyers may also be reluctant to purchase property at a
foreclosure sale as a result of the 1980 decision of the United States Court of
Appeals for the Fifth Circuit in DURRETT V. WASHINGTON NATIONAL INSURANCE
COMPANY. The court in DURRETT held that even a non-collusive, regularly
conducted foreclosure sale was a fraudulent transfer under Section 67d of the
former Bankruptcy Act (Section 548 of the current Bankruptcy Code, Bankruptcy
Reform Act of 1978, as amended, 11 U.S.C. SectionSection101-1330 (the
"Bankruptcy Code")) and, therefore, could be rescinded in favor of the
bankrupt's estate, if (i) the foreclosure sale was held while the debtor was
insolvent and not more than one year prior to the filing of the bankruptcy
petition and (ii) the price paid for the foreclosed property did not represent
"fair consideration" ("reasonably equivalent value" under the Bankruptcy Code).
Although the reasoning and result of DURRETT were rejected by the United States
Supreme Court in May 1994, the case could nonetheless be persuasive to a court
applying a state fraudulent conveyance law with provisions similar to those
construed in DURRETT. For these reasons, it is common for the lender to purchase
the mortgaged property for an amount equal to the secured indebtedness and
accrued and unpaid interest plus the expenses of foreclosure, in which event the
borrower's debt will be extinguished. Thereafter, subject to the borrower's
right in some states to remain in
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possession during a redemption period, the lender will become the owner of the
property and have both the benefits and burdens of ownership, including the
obligation to pay debt service on any senior mortgages, to pay taxes, to obtain
casualty insurance and to make such repairs as are necessary to render the
property suitable for sale. The costs involved in a foreclosure process can
often be quite expensive; such costs may include, depending on the jurisdiction
involved, legal fees, court administration fees, referee fees and transfer taxes
or fees. The costs of operating and maintaining a commercial or multifamily
residential property may be significant and may be greater than the income
derived from that property. The lender also will commonly obtain the services of
a real estate broker and pay the broker's commission in connection with the sale
or lease of the property. Depending upon market conditions, the ultimate
proceeds of the sale of the property may not equal the lender's investment in
the property. Moreover, because of the expenses associated with acquiring,
owning and selling a mortgaged property, a lender could realize an overall loss
on a mortgage loan even if the mortgaged property is sold at foreclosure, or
resold after it is acquired through foreclosure, for an amount equal to the full
outstanding principal amount of the loan plus accrued interest.
The holder of a junior mortgage that forecloses on a mortgaged property does
so subject to senior mortgages and any other prior liens, and may be obliged to
keep senior mortgage loans current in order to avoid foreclosure of its interest
in the property. In addition, if the foreclosure of a junior mortgage triggers
the enforcement of a "due-on-sale" clause contained in a senior mortgage, the
junior mortgagee could be required to pay the full amount of the senior mortgage
indebtedness, including penalty fees and court costs, or face foreclosure.
RIGHTS OF REDEMPTION. The purposes of a foreclosure action are to enable
the lender to realize upon its security and to bar the borrower, and all persons
who have interests in the property that are subordinate to that of the
foreclosing lender, from exercise of their "equity of redemption". The doctrine
of equity of redemption provides that, until the property encumbered by a
mortgage has been sold in accordance with a properly conducted foreclosure and
foreclosure sale, those having interests that are subordinate to that of the
foreclosing lender have an equity of redemption and may redeem the property by
paying the entire debt with interest. Those having an equity of redemption must
generally be made parties and joined in the foreclosure proceeding in order for
their equity of redemption to be terminated.
The equity of redemption is a common-law (non-statutory) right which should
be distinguished from post-sale statutory rights of redemption. In some states,
after sale pursuant to a deed of trust or foreclosure of a mortgage, the
borrower and foreclosed junior lienors are given a statutory period in which to
redeem the property. In some states, statutory redemption may occur only upon
payment of the foreclosure sale price. In other states, redemption may be
permitted if the former borrower pays only a portion of the sums due. The effect
of a statutory right of redemption is to diminish the ability of the lender to
sell the foreclosed property because the exercise of a right of redemption would
defeat the title of any purchaser through a foreclosure. Consequently, the
practical effect of the redemption right is to force the lender to maintain the
property and pay the expenses of ownership until the redemption period has
expired. In some states, a post-sale statutory right of redemption may exist
following a judicial foreclosure, but not following a trustee's sale under a
deed of trust.
ANTI-DEFICIENCY LEGISLATION. Some or all of the Mortgage Loans may be
nonrecourse loans, as to which recourse in the case of default will be limited
to the Mortgaged Property and such other assets, if any, that were pledged to
secure the Mortgage Loan. However, even if a mortgage loan by its terms provides
for recourse to the borrower's other assets, a lender's ability to realize upon
those assets may be limited by state law. For example, in some states a lender
cannot obtain a deficiency judgment against the borrower following a
non-judicial foreclosure. A deficiency judgment is a personal judgment against
the former borrower equal to the difference between the net amount realized upon
the public sale of the real property and the amount due to the lender. Other
statutes may require the lender to exhaust the security afforded under a
mortgage before bringing a personal action against the borrower. In certain
other states, the lender has the option of bringing a personal action against
the borrower on the debt without first
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exhausting such security; however, in some of those states, the lender,
following judgment on such personal action, may be deemed to have elected a
remedy and thus may be precluded from foreclosing upon the security.
Consequently, lenders in those states where such an election of remedy provision
exists will usually proceed first against the security. Finally, other statutory
provisions, designed to protect borrowers from exposure to large deficiency
judgments that might result from bidding at below-market values at the
foreclosure sale, limit any deficiency judgment to the excess of the outstanding
debt over the judicially determined fair market value of the property at the
time of the sale.
LEASEHOLD RISKS. Mortgage Loans may be secured by a mortgage on the
borrower's leasehold interest in a ground lease. Leasehold mortgage loans are
subject to certain risks not associated with mortgage loans secured by a lien on
the fee estate of the borrower. The most significant of these risks is that if
the borrower's leasehold were to be terminated upon a lease default or the
bankruptcy of the lessee or the lessor, the leasehold mortgagee would lose its
security. This risk may be substantially lessened if the ground lease contains
provisions protective of the leasehold mortgagee, such as a provision that
requires the ground lessor to give the leasehold mortgagee notices of lessee
defaults and an opportunity to cure them, a provision that permits the leasehold
estate to be assigned to and by the leasehold mortgagee or the purchaser at a
foreclosure sale, a provision that gives the leasehold mortgagee the right to
enter into a new ground lease with the ground lessor on the same terms and
conditions as the old ground lease or a provision that prohibits the ground
lessee/borrower from treating the ground lease as terminated in the event of the
ground lessor's bankruptcy and rejection of the ground lease by the trustee for
the debtor/ ground lessor. Certain mortgage loans, however, may be secured by
liens on ground leases that do not contain these provisions.
REGULATED HEALTHCARE FACILITIES. A Mortgage Loan may be secured by a
mortgage on a nursing home or other regulated healthcare facility. In most
jurisdictions, a license (which is nontransferable and may not be assigned or
pledged) granted by the appropriate state regulatory authority is required to
operate a regulated healthcare facility. Accordingly, the ability of a person
acquiring this type of property upon a foreclosure sale to take possession of
and operate the same as a regulated healthcare facility may be prohibited by
applicable law. Notwithstanding the foregoing, however, in certain jurisdictions
the person acquiring this type of property at a foreclosure sale may have the
right to terminate the use of the same as a regulated health care facility and
convert it to another lawful purpose.
CROSS-COLLATERALIZATION. Certain of the Mortgage Loans may be secured by
more than one mortgage covering Mortgaged Properties located in more than one
state. Because of various state laws governing foreclosure or the exercise of a
power of sale and because, in general, foreclosure actions are brought in state
court and the courts of one state cannot exercise jurisdiction over property in
another state, it may be necessary upon a default under a cross-collateralized
Mortgage Loan to foreclose on the related Mortgaged Properties in a particular
order rather than simultaneously in order to ensure that the lien of the
mortgages is not impaired or released.
COOPERATIVE LOANS. The cooperative shares owned by the tenant-stockholder
and pledged to the lender are, in almost all cases, subject to restrictions on
transfer as set forth in the Cooperative's Certificate of Incorporation and
By-laws, as well as the proprietary lease or occupancy agreement, and may be
cancelled by the Cooperative for failure by the tenant-stockholder to pay rent
or other obligations or charges owed by such tenant-stockholder, including
mechanics' liens against the cooperative apartment building incurred by such
tenant-stockholder. The proprietary lease or occupancy agreement generally
permit the Cooperative to terminate such lease or agreement in the event an
obligor fails to make payments or defaults in the performance of covenants
required thereunder. Typically, the lender and the Cooperative enter into a
recognition agreement which establishes the rights and obligations of both
parties in the event of a default by the tenant-stockholder. A default under the
proprietary lease or occupancy agreement will usually constitute a default under
the security agreement between the lender and the tenant-stockholder.
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The recognition agreement generally provides that, in the event that the
tenant-stockholder has defaulted under the proprietary lease or the occupancy
agreement is terminated, the Cooperative will recognize the lender's lien
against proceeds from the sale of the Cooperative apartment, subject, however,
to the Cooperative's right to sums due under such proprietary lease or occupancy
agreement. The total amount owed to the Cooperative by the tenant-stockholder,
which the lender generally cannot restrict and does not monitor, could reduce
the value of the collateral below the outstanding principal balance of the
Cooperative Loan and accrued and unpaid interest thereon.
Recognition agreements also provide that in the event of a foreclosure on a
Cooperative Loan, the lender must obtain the approval or consent of the
Cooperative as required by the proprietary lease before transferring the
Cooperative shares or assigning the proprietary lease. Generally, the lender is
not limited in any rights it may have to dispossess the tenant-stockholders.
In some states, foreclosure on the Cooperative shares is accomplished by a
sale in accordance with the provisions of Article 9 of the UCC and the security
agreement relating to those shares. Article 9 of the UCC requires that a sale be
conducted in a "commercially reasonable" manner. Whether a foreclosure sale has
been conducted in a "commercially reasonable" manner will depend on the facts in
each case. In determining commercial reasonableness, a court will look to the
notice given the debtor and the method, manner, time, place and terms of the
foreclosure. Generally, a sale conducted according to the usual practice of
banks selling similar collateral will be considered reasonably conducted.
Article 9 of the UCC provides that the proceeds of the sale will be applied
first to pay the costs and expenses of the sale and then to satisfy the
indebtedness secured by the lender's security interest. The recognition
agreement, however, generally provides that the lender's right to reimbursement
is subject to the right of the Cooperatives to receive sums due under the
proprietary lease or occupancy agreement. If there are proceeds remaining, the
lender must account to the tenant-stockholder for the surplus. Conversely, if a
portion of the indebtedness remains unpaid, the tenant-stockholder is generally
responsible for the deficiency.
BANKRUPTCY LAWS
Operation of the Bankruptcy Code and related state laws may interfere with
or affect the ability of a lender to realize upon collateral and/or to enforce a
deficiency judgment. For example, under the Bankruptcy Code, virtually all
actions (including foreclosure actions and deficiency judgment proceedings) to
collect a debt are automatically stayed upon the filing of the bankruptcy
petition and, often, no interest or principal payments are made during the
course of the bankruptcy case. The delay and the consequences thereof caused by
the automatic stay can be significant. Also, under the Bankruptcy Code, the
filing of a petition in bankruptcy by or on behalf of a junior lienor would stay
the senior lender from proceeding with any foreclosure action.
Under the Bankruptcy Code, provided certain substantive and procedural
safeguards protective of the lender's second claim are met, the amount and terms
of a mortgage loan secured by a lien on property of the debtor may be modified
under certain circumstances. For example, if the loan is undersecured, the
outstanding amount of the loan which would remain secured may be reduced to the
then-current value of the property (with a corresponding partial reduction of
the amount of lender's security interest) pursuant to a confirmed plan, thus
leaving the lender a general unsecured creditor for the difference between such
value and the outstanding balance of the loan. Other modifications may include
the reduction in the amount of each scheduled payment by means of a reduction in
the rate of interest and/or an alteration of the repayment schedule (with or
without affecting the unpaid principal balance of the loan), and/or by an
extension (or shortening) of the term to maturity. Some bankruptcy courts have
approved plans, based on the particular facts of the reorganization case, that
effected the cure of a mortgage loan default by paying arrearages over a number
of years. Also, a bankruptcy court may permit a debtor, through its
rehabilitative
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plan, to reinstate a loan mortgage payment schedule even if the lender has
obtained a final judgment of foreclosure prior to the filing of the debtor's
petition.
Federal bankruptcy law may also have the effect of interfering with or
affecting the ability of the secured lender to enforce the borrower's assignment
of rents and leases related to the mortgaged property. Under Section 362 of the
Bankruptcy Code, the lender will be stayed from enforcing the assignment, and
the legal proceedings necessary to resolve the issue could be time-consuming,
with resulting delays in the lender's receipt of the rents. However, the
Bankruptcy Code has recently been amended to provide that a lender's perfected
pre-petition security interest in leases, rents and hotel revenues continues in
the post-petition leases, rents and hotel revenues, unless a bankruptcy court
orders to the contrary "based on the equities of the case." Thus, unless a court
orders otherwise, revenues from a mortgaged property generated after the date
the bankruptcy petition is filed will constitute "cash collateral" under the
Bankruptcy Code. Debtors may only use cash collateral upon obtaining the
lender's consent or a prior court order finding that the lender's interest in
the mortgaged properties and the cash collateral is "adequately protected" as
such term is defined and interpreted under the Bankruptcy Code.
If a borrower's ability to make payment on a mortgage loan is dependent on
its receipt of rent payments under a lease of the related property, that ability
may be impaired by the commencement of a bankruptcy proceeding relating to a
lessee under such lease. Under the Bankruptcy Code, the filing of a petition in
bankruptcy by or on behalf of a lessee results in a stay in bankruptcy against
the commencement or continuation of any state court proceeding for past due
rent, for accelerated rent, for damages or for a summary eviction order with
respect to a default under the lease that occurred prior to the filing of the
lessee's petition. In addition, the Bankruptcy Code generally provides that a
trustee or debtor-in-possession may, subject to approval of the court, (i)
assume the lease and retain it or assign it to a third party or (ii) reject the
lease. If the lease is assumed, the trustee or debtor-in-possession (or
assignee, if applicable) must cure any defaults under the lease, compensate the
lessor for its losses and provide the lessor with "adequate assurance" of future
performance. Such remedies may be insufficient, and any assurances provided to
the lessor may, in fact, be inadequate. If the lease is rejected, the lessor
will be treated as an unsecured creditor with respect to its claim for damages
for termination of the lease. The Bankruptcy Code also limits a lessor's damages
for lease rejection to the rent reserved by the lease (without regard to
acceleration) for the greater of one year, or 15%, not to exceed three years, of
the remaining term of the lease.
ENVIRONMENTAL CONSIDERATIONS
GENERAL. A lender may be subject to environmental risks when taking a
security interest in real property. Of particular concern may be properties that
are or have been used for industrial, manufacturing, military, disposal or
certain commercial activity. Such environmental risks include the possible
diminution of the value of a contaminated property or, as discussed below,
potential liability for clean-up costs or other remedial actions that could
exceed the value of the property or the amount of the lender's loan. In certain
circumstances, a lender may decide to abandon a contaminated mortgaged property
as collateral for its loan rather than foreclose and risk liability for clean-up
costs.
SUPERLIEN LAWS. Under certain laws, contamination on a property may give
rise to a lien on the property for clean-up costs. In several states, such a
lien has priority over all existing liens, including those of existing
mortgages. In these states, the lien of a mortgage may lose its priority to such
a "superlien".
CERCLA. The federal Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended ("CERCLA"), imposes strict liability on
present and past "owners" and "operators" of contaminated real property for the
costs of clean-up. Excluded from CERCLA's definition of "owner" or "operator,"
however, is a lender that, "without participating in the management" of the
facility, holds indicia of ownership primarily to protect his security interest
in the facility. This so-called secured creditor
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exemption is intended to provide a lender protection from liability under CERCLA
as an owner or operator of contaminated property. The secured creditor
exemption, however, does not necessarily protect a lender from liability for
cleanup of hazardous substances in every situation. A secured lender may be
liable as an "owner" or "operator" of a contaminated mortgaged property if
agents or employees of the lender are deemed to have participated in the
management of such mortgaged property or the operations of the borrower. Such
liability may exist even if the lender did not cause or contribute to the
contamination and regardless of whether the lender has actually taken possession
of a mortgaged property through foreclosure, deed in lieu of foreclosure or
otherwise. Moreover, such liability is not limited to the original or
unamortized principal balance of a loan or to the value of the property securing
a loan.
In addition, lenders may face potential liability for remediation of
releases of petroleum or hazardous substances from underground storage tanks
under the Federal Resource Conservation and Recovery Act ("RCRA"), if they are
deemed to be the "owners" or "operators" of facilities in which they have a
security interest or upon which they have foreclosed.
The Federal Asset Conservation, Lender Liability and Deposit Insurance
Protection Act of 1996 (the "Lender Liability Act") seeks to clarify the actions
a lender may take without incurring liability as an "owner" or "operator" of
contaminated property or underground petroleum storage tanks. The Lender
Liability Act amends CERCLA and RCRA to provide guidance on actions that do or
do not constitute "participation in management."
Importantly, the Lender Liability Act does not, among other things: (1)
completely eliminate potential liability to lenders under CERCLA or RCRA, (2)
reduce credit risks associated with lending to borrowers having significant
environmental liabilities or potential liabilities, (3) eliminate environmental
risks associated with taking possession of contaminated property or underground
storage tanks or assuming control of the operations thereof, or (4) affect
liabilities or potential liabilities under state environmental laws.
CERTAIN OTHER STATE LAWS. Many states have statutes similar to CERCLA and
RCRA, and not all of those statutes provide for a secured creditor exemption.
In a few states, transfers of some types of properties are conditioned upon
cleanup of contamination. In these cases, a lender that becomes the owner of a
property through foreclosure, deed in lieu of foreclosure or otherwise, may be
required to clean up the contamination before selling or otherwise transferring
the property.
Beyond statute-based environmental liability, there exist common law causes
of action (for example, actions based on nuisance or on toxic tort resulting in
death, personal injury, or damage to property) related to hazardous
environmental conditions on a property. While it may be more difficult to hold a
lender liable in such cases, unanticipated or uninsured liabilities of the
borrower may jeopardize the borrower's ability to meet its loan obligations.
ADDITIONAL CONSIDERATIONS. The cost of remediating hazardous substance
contamination at a property can be substantial. If a lender becomes liable, it
can bring an action for contribution against other potentially liable parties,
but such parties may be without substantial assets. Accordingly, it is possible
that such costs could become a liability of the Trust Fund and occasion a loss
to the Certificateholders.
To reduce the likelihood of such a loss, unless otherwise specified in the
related Prospectus Supplement, the Pooling and Servicing Agreement will provide
that the Master Servicer, acting on behalf of the Trustee, may not take
possession of a Mortgaged Property or take over its operation unless the Master
Servicer, based solely on a report (as to environmental matters) prepared by a
person who regularly conducts environmental site assessments, has made the
determination that it is appropriate to do so, as described under "Description
of the Pooling Agreements--Realization Upon Defaulted Mortgage Loans."
If a lender forecloses on a mortgage secured by a property, the operations
of which are subject to environmental laws and regulations, the lender may be
required to operate the property in accordance with
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those laws and regulations. Such compliance may entail substantial expense,
especially in the case of industrial or manufacturing properties.
In addition, a lender may be obligated to disclose environmental conditions
on a property to government entities and/or to prospective buyers (including
prospective buyers at a foreclosure sale or following foreclosure). Such
disclosure may result in the imposition of certain investigation or remediation
requirements and/or decrease the amount that prospective buyers are willing to
pay for the affected property, sometimes substantially, and thereby decrease the
ability of the lender to recoup its investment in a loan upon foreclosure.
DUE-ON-SALE AND DUE-ON-ENCUMBRANCE
Certain of the Mortgage Loans may contain "due-on-sale" and
"due-on-encumbrance" clauses that purport to permit the lender to accelerate the
maturity of the loan if the borrower transfers or encumbers the related
Mortgaged Property. In recent years, court decisions and legislative actions
placed substantial restrictions on the right of lenders to enforce such clauses
in many states. By virtue, however, of the Garn-St. Germain Depository
Institutions Act of 1982 (the "Garn Act"), effective October 15, 1982 (which
purports to preempt state laws that prohibit the enforcement of due-on-sale
clauses by providing, among other matters, that "due-on-sale" clauses in certain
loans made after the effective date of the Garn Act are enforceable, within
certain limitations as set forth in the Garn Act and the regulations promulgated
thereunder), a Master Servicer may nevertheless have the right to accelerate the
maturity of a Mortgage Loan that contains a "due-on-sale" provision upon
transfer of an interest in the property, regardless of the Master Servicer's
ability to demonstrate that a sale threatens its legitimate security interest.
SUBORDINATE FINANCING
Certain of the Mortgage Loans may not restrict the ability of the borrower
to use the Mortgaged Property as security for one or more additional loans.
Where a borrower encumbers a mortgaged property with one or more junior liens,
the senior lender is subjected to additional risk. First, the borrower may have
difficulty servicing and repaying multiple loans. Moreover, if the subordinate
financing permits recourse to the borrower (as is frequently the case) and the
senior loan does not, a borrower may have more incentive to repay sums due on
the subordinate loan. Second, acts of the senior lender that prejudice the
junior lender or impair the junior lender's security may create a superior
equity in favor of the junior lender. For example, if the borrower and the
senior lender agree to an increase in the principal amount of or the interest
rate payable on the senior loan, the senior lender may lose its priority to the
extent any existing junior lender is harmed or the borrower is additionally
burdened. Third, if the borrower defaults on the senior loan and/or any junior
loan or loans, the existence of junior loans and actions taken by junior lenders
can impair the security available to the senior lender and can interfere with or
delay the taking of action by the senior lender. Moreover, the bankruptcy of a
junior lender may operate to stay foreclosure or similar proceedings by the
senior lender.
DEFAULT INTEREST AND LIMITATIONS ON PREPAYMENTS
Notes and mortgages may contain provisions that obligate the borrower to pay
a late charge or additional interest if payments are not timely made, and in
some circumstances, may prohibit prepayments for a specified period and/or
condition prepayments upon the borrower's payment of prepayment fees or yield
maintenance penalties. In certain states, there are or may be specific
limitations upon the late charges which a lender may collect from a borrower for
delinquent payments. Certain states also limit the amounts that a lender may
collect from a borrower as an additional charge if the loan is prepaid. In
addition, the enforceability of provisions that provide for prepayment fees or
penalties upon an involuntary prepayment is unclear under the laws of many
states.
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APPLICABILITY OF USURY LAWS
Title V of the Depository Institutions Deregulation and Monetary Control Act
of 1980 ("Title V") provides that state usury limitations shall not apply to
certain types of residential (including multifamily) first mortgage loans
originated by certain lenders after March 31, 1980. Title V authorized any state
to reimpose interest rate limits by adopting, before April 1, 1983, a law or
constitutional provision that expressly rejects application of the federal law.
In addition, even where Title V is not so rejected, any state is authorized by
the law to adopt a provision limiting discount points or other charges on
mortgage loans covered by Title V. Certain states have taken action to reimpose
interest rate limits and/or to limit discount points or other charges.
No Mortgage Loan originated in any state in which application of Title V has
been expressly rejected or a provision limiting discount points or other charges
has been adopted will (if originated after that rejection or adoption) be
eligible for inclusion in a Trust Fund unless (i) such Mortgage Loan provides
for such interest rate, discount points and charges as are permitted in such
state or (ii) such Mortgage Loan provides that the terms thereof are to be
construed in accordance with the laws of another state under which such interest
rate, discount points and charges would not be usurious and the borrower's
counsel has rendered an opinion that such choice of law provision would be given
effect.
SOLDIERS' AND SAILORS' CIVIL RELIEF ACT OF 1940
Under the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, as
amended (the "Relief Act"), a borrower who enters military service after the
origination of such borrower's mortgage loan (including a borrower who was in
reserve status and is called to active duty after origination of the Mortgage
Loan), may not be charged interest (including fees and charges) above an annual
rate of 6% during the period of such borrower's active duty status, unless a
court orders otherwise upon application of the lender. The Relief Act applies to
individuals who are members of the Army, Navy, Air Force, Marines, National
Guard, Reserves, Coast Guard and officers of the U.S. Public Health Service
assigned to duty with the military. Because the Relief Act applies to
individuals who enter military service (including reservists who are called to
active duty) after origination of the related mortgage loan, no information can
be provided as to the number of loans with individuals as borrowers that may be
affected by the Relief Act. Application of the Relief Act would adversely
affect, for an indeterminate period of time, the ability of any servicer to
collect full amounts of interest on certain of the Mortgage Loans. Any
shortfalls in interest collections resulting from the application of the Relief
Act would result in a reduction of the amounts distributable to the holders of
the related series of Certificates, and would not be covered by advances or,
unless otherwise specified in the related Prospectus Supplement, any form of
Credit Support provided in connection with such Certificates. In addition, the
Relief Act imposes limitations that would impair the ability of the servicer to
foreclose on an affected Mortgage Loan during the borrower's period of active
duty status and, under certain circumstances, during an additional three-month
period thereafter.
AMERICANS WITH DISABILITIES ACT
Under Title III of the Americans with Disabilities Act of 1990 and rules
promulgated thereunder (collectively, the "ADA"), in order to protect
individuals with disabilities, public accommodations (such as hotels,
restaurants, shopping centers, hospitals, schools and social service center
establishments) must remove architectural and communication barriers that are
structural in nature from existing places of public accommodation to the extent
"readily achievable". In addition, under the ADA, alterations to a place of
public accommodation or a commercial facility are to be made so that, to the
maximum extent feasible, such altered portions are readily accessible to and
usable by disabled individuals. The "readily achievable" standard takes into
account, among other factors, the financial resources of the affected site,
owner, landlord or other applicable person. The requirements of the ADA may also
be imposed on a foreclosing lender who succeeds to the interest of the borrower
as owner or landlord. Since the "readily achievable" standard may vary depending
on the financial condition of the owner or landlord, a foreclosing
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lender who is financially more capable than the borrower of complying with the
requirements of the ADA may be subject to more stringent requirements than those
to which the borrower is subject.
FORFEITURES IN DRUG AND RICO PROCEEDINGS
Federal law provides that property owned by persons convicted of
drug-related crimes or of criminal violations of the Racketeer Influenced and
Corrupt Organizations ("RICO") statute can be seized by the government if the
property was used in, or purchased with the proceeds of, such crimes. Under
procedures contained in the Comprehensive Crime Control Act of 1984, the
government may seize the property even before conviction. The government must
publish notice of the forfeiture proceeding and may give notice to all parties
"known to have an alleged interest in the property", including the holders of
mortgage loans.
A lender may avoid forfeiture of its interest in the property if it
establishes that: (i) its mortgage was executed and recorded before commission
of the crime upon which the forfeiture is based or (ii) the lender was, at the
time of execution of the mortgage, "reasonably without cause to believe" that
the property was used in, or purchased with the proceeds of, illegal drug or
RICO activities.
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MATERIAL FEDERAL INCOME TAX CONSEQUENCES
GENERAL
The following is a general discussion of the anticipated material federal
income tax consequences of the purchase, ownership and disposition of Offered
Certificates. This discussion is directed solely to Certificateholders that hold
the Certificates as capital assets within the meaning of Section 1221 of the
Internal Revenue Code of 1986 (the "Code") and it does not purport to discuss
all federal income tax consequences that may be applicable to particular
categories of investors, some of which (such as banks, insurance companies and
foreign investors) may be subject to special rules. Further, the authorities on
which this discussion, and the opinion referred to below, are based are subject
to change or differing interpretations, which could apply retroactively.
Taxpayers and preparers of tax returns (including those filed by any REMIC or
other issuer) should be aware that under applicable Treasury regulations a
provider of advice on specific issues of law is not considered an income tax
return preparer unless the advice (i) is given with respect to the consequences
of contemplated actions and (ii) is directly relevant to the determination of an
entry on a tax return. Accordingly, taxpayers should consult their own tax
advisors and tax return preparers regarding the preparation of any item on a tax
return, even where the anticipated tax treatment has been discussed herein. In
addition to the federal income tax consequences described herein, potential
investors should consider the state and local tax consequences, if any, of the
purchase, ownership and disposition of Offered Certificates. See "State and
Other Tax Consequences". Certificateholders are advised to consult their own tax
advisors concerning the federal, state, local or other tax consequences to them
of the purchase, ownership and disposition of Offered Certificates.
The following discussion addresses securities of two general types: (i)
certificates ("REMIC Certificates") representing interests in a Trust Fund, or a
portion thereof, that the Master Servicer or the Trustee will elect to have
treated as a real estate mortgage investment conduit ("REMIC") under Sections
860A through 860G (the "REMIC Provisions") of the Code and (ii) certificates
("Grantor Trust Certificates") representing interests in a Trust Fund ("Grantor
Trust Fund") as to which no such election will be made. If no REMIC election is
made and the Trust Fund does not elect to be treated as a Grantor Trust Fund,
the Trust Fund may elect to be treated as a financial assets securitization
investment trust ("FASIT"). The Prospectus Supplement relating to such an
election will describe the requirements for the classification of the Trust Fund
as a FASIT and the consequences to a holder of owing certificates in a FASIT.
The Prospectus Supplement for each series of Certificates also will indicate
whether a REMIC election (or elections) will be made for the related Trust Fund
and, if such an election is to be made, will identify all "regular interests"
and "residual interests" in the REMIC. For purposes of this tax discussion,
references to a "Certificateholder" or a "holder" are to the beneficial owner of
a Certificate.
The following discussion is limited in applicability to Offered
Certificates. Moreover, this discussion applies only to the extent that Mortgage
Assets held by a Trust Fund consist solely of Mortgage Loans. To the extent that
other Mortgage Assets, including REMIC certificates and mortgage pass-through
certificates, are to be held by a Trust Fund, the tax consequences associated
with the inclusion of such assets will be disclosed in the related Prospectus
Supplement. In addition, if Cash Flow Agreements, other than guaranteed
investment contracts, are included in a Trust Fund, the tax consequences
associated with such Cash Flow Agreements also will be disclosed in the related
Prospectus Supplement. See "Description of the Trust Funds--Cash Flow
Agreements".
Furthermore, the following discussion is based in part upon the rules
governing original issue discount that are set forth in Sections 1271-1273 and
1275 of the Code and in the Treasury regulations issued thereunder (the "OID
Regulations"), and in part upon the REMIC Provisions and the Treasury
regulations issued thereunder (the "REMIC Regulations"). The OID Regulations do
not adequately address certain issues relevant to, and in some instances provide
that they are not applicable to, securities such as the Certificates.
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REMICS
CLASSIFICATION OF REMICS. It is the opinion of Willkie Farr & Gallagher,
counsel to the Depositor, that upon the issuance of each series of REMIC
Certificates, assuming compliance with all provisions of the related Pooling
Agreement and based upon the law on the date hereof, for federal income tax
purposes the related Trust Fund (or each applicable portion thereof) will
qualify as a REMIC and the REMIC Certificates offered with respect thereto will
be considered to evidence ownership of "regular interests" ("REMIC Regular
Certificates") or "residual interests" ("REMIC Residual Certificates") in that
REMIC within the meaning of the REMIC Provisions.
If an entity electing to be treated as a REMIC fails to comply with one or
more of the ongoing requirements of the Code for such status during any taxable
year, the Code provides that the entity will not be treated as a REMIC for such
year and thereafter. In that event, such entity may be taxable as a corporation
under Treasury regulations, and the related REMIC Certificates may not be
accorded the status or given the tax treatment described below. Although the
Code authorizes the Treasury Department to issue regulations providing relief in
the event of an inadvertent termination of REMIC status, no such regulations
have been issued. Any such relief, moreover, may be accompanied by sanctions,
such as the imposition of a corporate tax on all or a portion of the Trust
Fund's income for the period during which the requirements for such status are
not satisfied. The Pooling Agreement with respect to each REMIC will include
provisions designed to maintain the Trust Fund's status as a REMIC under the
REMIC Provisions. It is not anticipated that the status of any Trust Fund as a
REMIC will be terminated.
CHARACTERIZATION OF INVESTMENTS IN REMIC CERTIFICATES. In general, the
REMIC Certificates will be "real estate assets" within the meaning of Section
856(c)(4)(A) of the Code and assets described in Section 7701(a)(19)(C) of the
Code in the same proportion that the assets of the REMIC underlying such
Certificates would be so treated. However, to the extent that the REMIC assets
constitute mortgages on property not used for residential or certain other
prescribed purposes, the REMIC Certificates will not be treated as assets
qualifying under Section 7701(a)(19)(C)(v) of the Code. Moreover, if 95% or more
of the assets of the REMIC qualify for any of the foregoing treatments at all
times during a calendar year, the REMIC Certificates will qualify for the
corresponding status in their entirety for that calendar year. Interest
(including original issue discount) on the REMIC Regular Certificates and income
allocated to the class of REMIC Residual Certificates will be interest described
in Section 856(c)(3)(B) of the Code to the extent that such Certificates are
treated as "real estate assets" within the meaning of Section 856(c)(4)(A) of
the Code. In addition, the REMIC Regular Certificates will be "qualified
mortgages" within the meaning of Section 860G(a)(3) of the Code. The
determination as to the percentage of the REMIC's assets that constitute assets
described in the foregoing sections of the Code will be made with respect to
each calendar quarter based on the average adjusted basis of each category of
the assets held by the REMIC during such calendar quarter. The Master Servicer
or the Trustee will report those determinations to Certificateholders in the
manner and at the times required by the applicable Treasury regulations.
The assets of the REMIC will include, in addition to Mortgage Loans,
payments on Mortgage Loans held pending distribution on the REMIC Certificates
and property acquired by foreclosure held pending sale, and may include amounts
in reserve accounts. It is unclear whether property acquired by foreclosure held
pending sale and amounts in reserve accounts would be considered to be part of
the Mortgage Loans, or whether such assets (to the extent not invested in assets
described in the foregoing sections) otherwise would receive the same treatment
as the Mortgage Loans for purposes of all of the foregoing sections. In
addition, in some instances Mortgage Loans may not be treated entirely as assets
described in the foregoing sections. If so, the related Prospectus Supplement
will describe those Mortgage Loans that may not be so treated. The REMIC
Regulations do provide, however, that payments on Mortgage Loans held pending
distribution are considered part of the Mortgage Loans for purposes of Section
856(c)(4)(A) of the Code.
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TIERED REMIC STRUCTURES. For certain series of REMIC Certificates, two or
more separate elections may be made to treat designated portions of the related
Trust Fund as REMICs ("Tiered REMICs") for federal income tax purposes. Upon the
issuance of any such series of REMIC Certificates, counsel to the Depositor will
deliver its opinion generally to the effect that, assuming compliance with all
provisions of the related Pooling Agreement, the Tiered REMICs will each qualify
as a REMIC and the REMIC Certificates issued by the Tiered REMICs, respectively,
will be considered to evidence ownership of REMIC Regular Certificates or REMIC
Residual Certificates in the related REMIC within the meaning of the REMIC
Provisions.
Solely for purposes of determining whether the REMIC Certificates will be
"real estate assets" within the meaning of Section 856(c)(4)(A) of the Code, and
"loans secured by an interest in real property" under Section 7701(a)(19)(C) of
the Code, and whether the income on such Certificates is interest described in
Section 856(c)(3)(B) of the Code, the Tiered REMICs will be treated as one
REMIC.
TAXATION OF OWNERS OF REMIC REGULAR CERTIFICATES
GENERAL. Except as otherwise stated in this discussion, REMIC Regular
Certificates will be treated for federal income tax purposes as debt instruments
issued by the REMIC and not as ownership interests in the REMIC or its assets.
Moreover, holders of REMIC Regular Certificates that otherwise report income
under a cash method of accounting will be required to report income with respect
to REMIC Regular Certificates under an accrual method.
ORIGINAL ISSUE DISCOUNT. Certain REMIC Regular Certificates may be issued
with "original issue discount" within the meaning of Section 1273(a) of the
Code. Any holders of REMIC Regular Certificates issued with original issue
discount generally will be required to include original issue discount in income
as it accrues, in accordance with the method described below, in advance of the
receipt of the cash attributable to such income. In addition, Section 1272(a)(6)
of the Code provides special rules applicable to REMIC Regular Certificates and
certain other debt instruments issued with original issue discount. Regulations
have not been issued under that section.
The Code requires that a prepayment assumption be used with respect to
Mortgage Loans held by a REMIC in computing the accrual of original issue
discount on REMIC Regular Certificates issued by that REMIC, and that
adjustments be made in the amount and rate of accrual of such discount to
reflect differences between the actual prepayment rate and the prepayment
assumption. The prepayment assumption is to be determined in a manner prescribed
in Treasury regulations; as noted above, those regulations have not been issued.
The Conference Committee Report accompanying the Tax Reform Act of 1986 (the
"Committee Report") indicates that the regulations will provide that the
prepayment assumption used with respect to a REMIC Regular Certificate must be
the same as that used in pricing the initial offering of such REMIC Regular
Certificate. The prepayment assumption (the "Prepayment Assumption") used in
reporting original issue discount for each series of REMIC Regular Certificates
will be consistent with this standard and will be disclosed in the related
Prospectus Supplement. However, neither the Depositor nor any other person will
make any representation that the Mortgage Loans will in fact prepay at a rate
conforming to the Prepayment Assumption or at any other rate.
The original issue discount, if any, on a REMIC Regular Certificate will be
the excess of its stated redemption price at maturity over its issue price. The
issue price of a particular class of REMIC Regular Certificates will be the
first cash price at which a substantial amount of REMIC Regular Certificates of
that class is sold (excluding sales to bond houses, brokers and underwriters).
If less than a substantial amount of a particular class of REMIC Regular
Certificates is sold for cash on or prior to the date of their initial issuance
(the "Closing Date"), the issue price for such class will be the fair market
value of such class on the Closing Date. Under the OID Regulations, the stated
redemption price of a REMIC Regular Certificate is equal to the total of all
payments to be made on such Certificate other than "qualified stated interest".
"Qualified stated interest" includes interest that is unconditionally payable at
least annually at a
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single fixed rate, at a "qualified floating rate", or at an "objective rate", a
combination of a single fixed rate and one or more "qualified floating rates" or
one "qualified inverse floating rate", or a combination of "qualified floating
rates" that does not operate in a manner that accelerates or defers interest
payments on such REMIC Regular Certificate.
In the case of REMIC Regular Certificates bearing adjustable interest rates,
the determination of the total amount of original issue discount and the timing
of the inclusion thereof will vary according to the characteristics of such
REMIC Regular Certificates. If the original issue discount rules apply to such
Certificates, the related Prospectus Supplement will describe the manner in
which such rules will be applied with respect to those Certificates in preparing
information returns to the Certificateholders and the Internal Revenue Service
(the "IRS").
In addition, if the accrued interest to be paid on the first Distribution
Date is computed with respect to a period that begins prior to the Closing Date,
a portion of the purchase price paid for a REMIC Regular Certificate will
reflect such accrued interest. In such cases, information returns provided to
the Certificateholders and the IRS will be based on the position that the
portion of the purchase price paid for the interest accrued with respect to
periods prior to the Closing Date is treated as part of the overall cost of such
REMIC Regular Certificate (and not as a separate asset the cost of which is
recovered entirely out of interest received on the next Distribution Date) and
that portion of the interest paid on the first Distribution Date in excess of
interest accrued for a number of days corresponding to the number of days from
the Closing Date to the first Distribution Date should be included in the stated
redemption price of such REMIC Regular Certificate. However, the OID Regulations
state that all or some portion of such accrued interest may be treated as a
separate asset the cost of which is recovered entirely out of interest paid on
the first Distribution Date. It is unclear how an election to do so would be
made under the OID Regulations and whether such an election could be made
unilaterally by a Certificateholder.
Notwithstanding the general definition of original issue discount, original
issue discount on a REMIC Regular Certificate will be considered to be de
minimis if it is less than 0.25% of the stated redemption price of the REMIC
Regular Certificate multiplied by its weighted average life. For this purpose,
the weighted average life of the REMIC Regular Certificate is computed as the
sum of the amounts determined, as to each payment included in the stated
redemption price of such REMIC Regular Certificate, by multiplying (i) the
number of complete years (rounding down for partial years) from the issue date
until such payment is expected to be made (presumably taking into account the
Prepayment Assumption) by (ii) a fraction, the numerator of which is the amount
of the payment, and the denominator of which is the stated redemption price at
maturity of such REMIC Regular Certificate. Under the OID Regulations, original
issue discount of only a DE MINIMIS amount (other than DE MINIMIS original
discount attributable to a so-called "teaser" interest rate or an initial
interest holiday) will be included in income as each payment of stated principal
is made, based on the product of the total amount of such DE MINIMIS original
issue discount and a fraction, the numerator of which is the amount of such
principal payment and the denominator of which is the outstanding stated
principal amount of the REMIC Regular Certificate. The OID Regulations also
would permit a Certificateholder to elect to accrue DE MINIMIS original issue
discount into income currently based on a constant yield method. See "--Taxation
of Owners of REMIC Regular Certificates--Market Discount" for a description of
such election under the OID Regulations.
If original issue discount on a REMIC Regular Certificate is in excess of a
DE MINIMIS amount, the holder of such Certificate must include in ordinary gross
income the sum of the "daily portions" of original issue discount for each day
during its taxable year on which it held such REMIC Regular Certificate,
including the purchase date but excluding the disposition date. In the case of
an original holder of a REMIC Regular Certificate, the daily portions of
original issue discount will be determined as follows.
As to each "accrual period", that is, each period that ends on a date that
corresponds to a Distribution Date and begins on the first day following the
immediately preceding accrual period (or in the case of the first such period,
begins on the Closing Date), a calculation will be made of the portion of the
original issue
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discount that accrued during such accrual period. The portion of original issue
discount that accrues in any accrual period will equal the excess, if any, of
(i) the sum of (a) the present value, as of the end of the accrual period, of
all of the distributions remaining to be made on the REMIC Regular Certificate,
if any, in future periods and (b) the distributions made on such REMIC Regular
Certificate during the accrual period of amounts included in the stated
redemption price, over (ii) the adjusted issue price of such REMIC Regular
Certificate at the beginning of the accrual period. The present value of the
remaining distributions referred to in the preceding sentence will be calculated
(x) assuming that distributions on the REMIC Regular Certificate will be
received in future periods based on the Mortgage Loans being prepaid at a rate
equal to the Prepayment Assumption and (y) using a discount rate equal to the
original yield to maturity of the Certificate. For these purposes, the original
yield to maturity of the Certificate will be calculated based on its issue price
and assuming that distributions on the Certificate will be made in all accrual
periods based on the Mortgage Loans being prepaid at a rate equal to the
Prepayment Assumption. The adjusted issue price of a REMIC Regular Certificate
at the beginning of any accrual period will equal the issue price of such
Certificate, increased by the aggregate amount of original issue discount that
accrued with respect to such Certificate in prior accrual periods, and reduced
by the amount of any distributions made on such REMIC Regular Certificate in
prior accrual periods of amounts included in the stated redemption price. The
original issue discount accruing during any accrual period, computed as
described above, will be allocated ratably to each day during the accrual period
to determine the daily portion of original issue discount for such day.
A subsequent purchaser of a REMIC Regular Certificate that purchases such
Certificate at a cost (excluding any portion of such cost attributable to
accrued qualified stated interest) less than its remaining stated redemption
price will also be required to include in gross income the daily portions of any
original issue discount with respect to such Certificate. However, each such
daily portion will be reduced, if such cost is in excess of its "adjusted issue
price", in proportion to the ratio such excess bears to the aggregate original
issue discount remaining to be accrued on such REMIC Regular Certificate. The
adjusted issue price of a REMIC Regular Certificate on any given day equals the
sum of (i) the adjusted issue price (or, in the case of the first accrual
period, the issue price) of such Certificate at the beginning of the accrual
period which includes such day and (ii) the daily portions of original issue
discount for all days during such accrual period prior to such day.
MARKET DISCOUNT. A Certificateholder that purchases a REMIC Regular
Certificate at a market discount, that is, in the case of a REMIC Regular
Certificate issued without original issue discount, at a purchase price less
than its remaining stated principal amount, or in the case of a REMIC Regular
Certificate issued with original issue discount, at a purchase price less than
its adjusted issue price, will recognize gain upon receipt of each distribution
representing stated redemption price. In particular, under Section 1276 of the
Code such a Certificateholder generally will be required to allocate the portion
of each such distribution representing stated redemption price first to accrued
market discount not previously included in income, and to recognize ordinary
income to that extent. A Certificateholder may elect to include market discount
in income currently as it accrues rather than including it on a deferred basis
in accordance with the foregoing. If made, such election will apply to all
market discount bonds acquired by such Certificateholder on or after the first
day of the first taxable year to which such election applies. In addition, the
OID Regulations permit a Certificateholder to elect to accrue all interest,
discount (including DE MINIMIS market or original issue discount) and premium in
income as interest, based on a constant yield method. If such an election were
made with respect to a REMIC Regular Certificate with market discount, the
Certificateholder would be deemed to have made an election to currently include
market discount in income with respect to all other debt instruments having
market discount that such Certificateholder acquires during the taxable year of
the election or thereafter, and possibly previously acquired instruments.
Similarly, a Certificateholder that made this election for a Certificate that is
acquired at a premium would be deemed to have made an election to amortize bond
premium with respect to all debt instruments having amortizable bond premium
that such Certificateholder owns or acquires. See "--Taxation of Owners of
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REMIC Regular Certificates--Premium". Each of these elections to accrue
interest, discount and premium with respect to a Certificate on a constant yield
method or as interest would be irrevocable.
However, market discount with respect to a REMIC Regular Certificate will be
considered to be DE MINIMIS for purposes of Section 1276 of the Code if such
market discount is less than 0.25% of the remaining stated redemption price of
such REMIC Regular Certificate multiplied by the number of complete years to
maturity remaining after the date of its purchase. In interpreting a similar
rule with respect to original issue discount on obligations payable in
installments, the OID Regulations refer to the weighted average maturity of
obligations, and it is likely that the same rule will be applied with respect to
market discount, presumably taking into account the Prepayment Assumption. If
market discount is treated as DE MINIMIS under this rule, it appears that the
actual discount would be treated in a manner similar to original issue discount
of a DE MINIMIS amount. See "--Taxation of Owners of REMIC Regular
Certificates--Original Issue Discount". Such treatment would result in discount
being included in income at a slower rate than discount would be required to be
included in income using the method described above.
Section 1276(b)(3) of the Code specifically authorizes the Treasury
Department to issue regulations providing for the method for accruing market
discount on debt instruments, the principal of which is payable in more than one
installment. Until regulations are issued by the Treasury Department, certain
rules described in the Committee Report apply. The Committee Report indicates
that in each accrual period market discount on REMIC Regular Certificates should
accrue, at the Certificateholder's option: (i) on the basis of a constant yield
method; (ii) in the case of a REMIC Regular Certificate issued without original
issue discount, in an amount that bears the same ratio to the total remaining
market discount as the stated interest paid in the accrual period bears to the
total amount of stated interest remaining to be paid on the REMIC Regular
Certificate as of the beginning of the accrual period or (iii) in the case of a
REMIC Regular Certificate issued with original issue discount, in an amount that
bears the same ratio to the total remaining market discount as the original
issue discount accrued in the accrual period bears to the total original issue
discount remaining on the REMIC Regular Certificate at the beginning of the
accrual period. Moreover, the Prepayment Assumption used in calculating the
accrual of original issue discount is also used in calculating the accrual of
market discount. Because the regulations referred to in this paragraph have not
been issued, it is not possible to predict what effect such regulations might
have on the tax treatment of a REMIC Regular Certificate purchased at a discount
in the secondary market.
To the extent that REMIC Regular Certificates provide for monthly or other
periodic distributions throughout their term, the effect of these rules may be
to require market discount to be includible in income at a rate that is not
significantly slower than the rate at which such discount would accrue if it
were original issue discount. Moreover, in any event a holder of a REMIC Regular
Certificate generally will be required to treat a portion of any gain on the
sale or exchange of such Certificate as ordinary income to the extent of the
market discount accrued to the date of disposition under one of the foregoing
methods, less any accrued market discount previously reported as ordinary
income.
Further, under Section 1277 of the Code a holder of a REMIC Regular
Certificate may be required to defer a portion of its interest deductions for
the taxable year attributable to any indebtedness incurred or continued to
purchase or carry a REMIC Regular Certificate purchased with market discount.
For these purposes, the DE MINIMIS rule referred to above applies. Any such
deferred interest expense would not exceed the market discount that accrues
during such taxable year and is, in general, allowed as a deduction not later
than the year in which such market discount is includible in income. If such
holder elects to include market discount in income currently as it accrues on
all market discount instruments acquired by such holder in that taxable year or
thereafter, the interest deferral rule described above will not apply.
PREMIUM. A REMIC Regular Certificate purchased at a cost (excluding any
portion of such cost attributable to accrued qualified stated interest) greater
than its remaining stated redemption price will be considered to be purchased at
a premium. The holder of such a REMIC Regular Certificate may elect
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under Section 171 of the Code to amortize such premium under the constant yield
method over the life of the Certificate. If made, such an election will apply to
all debt instruments having amortizable bond premium that the holder owns or
subsequently acquires. Amortizable premium will be treated as an offset to
interest income on the related debt instrument, rather than as a separate
interest deduction. The OID Regulations also permit Certificateholders to elect
to include all interest, discount and premium in income based on a constant
yield method, further treating the Certificateholder as having made the election
to amortize premium generally. See "--Taxation of Owners of REMIC Regular
Certificates--Market Discount". The Committee Report states that the same rules
that apply to accrual of market discount (which rules will require use of a
Prepayment Assumption in accruing market discount with respect to REMIC Regular
Certificates without regard to whether such Certificates have original issue
discount) will also apply in amortizing bond premium under Section 171 of the
Code.
REALIZED LOSSES. Under Section 166 of the Code, both corporate holders of
the REMIC Regular Certificates and noncorporate holders of the REMIC Regular
Certificates that acquire such Certificates in connection with a trade or
business should be allowed to deduct, as ordinary losses, any losses sustained
during a taxable year in which their Certificates become wholly or partially
worthless as the result of one or more realized losses on the Residential Loans.
However, it appears that a noncorporate holder that does not acquire a REMIC
Regular Certificate in connection with a trade or business will not be entitled
to deduct a loss under Section 166 of the Code until such holder's Certificate
becomes wholly worthless (i.e., until its outstanding principal balance has been
reduced to zero) and that the loss will be characterized as a short-term capital
loss.
Each holder of a REMIC Regular Certificate will be required to accrue
interest and original issue discount with respect to such Certificate, without
giving effect to any reductions in distributions attributable to defaults or
delinquencies on the Residential Loans or the underlying Certificates until it
can be established that any such reduction ultimately will not be recoverable.
As a result, the amount of taxable income reported in any period by the holder
of a REMIC Regular Certificate could exceed the amount of economic income
actually realized by the holder in such period. Although the holder of a REMIC
Regular Certificate eventually will recognize a loss or reduction in income
attributable to previously accrued and included income that as the result of a
realized loss ultimately will not be realized, the law is unclear with respect
to the timing and character of such loss or reduction in income.
TAXATION OF OWNERS OF REMIC RESIDUAL CERTIFICATES
GENERAL. As residual interests, the REMIC Residual Certificates will be
subject to tax rules that differ significantly from those that would apply if
the REMIC Residual Certificates were treated for federal income tax purposes as
direct ownership interests in the Mortgage Loans or as debt instruments issued
by the REMIC.
An original holder of a REMIC Residual Certificate generally will be
required to report its daily portion of the taxable income or, subject to the
limitations noted in this discussion, the net loss of the REMIC for each day
during a calendar quarter that such holder owned such REMIC Residual
Certificate. For this purpose, the taxable income or net loss of the REMIC will
be allocated to each day in the calendar quarter ratably using a "30 days per
month/90 days per quarter/360 days per year" convention unless otherwise
disclosed in the related Prospectus Supplement. The daily amounts so allocated
will then be allocated among the REMIC Residual Certificateholders in proportion
to their respective ownership interests on such day. Any amount included in the
gross income or allowed as a loss of any REMIC Residual Certificateholder by
virtue of this paragraph will be treated as ordinary income or loss. The taxable
income of the REMIC will be determined under the rules described below in
"--Taxable Income of the REMIC" and will be taxable to the REMIC Residual
Certificateholders without regard to the timing or amount of cash distributions
by the REMIC. Ordinary income derived from REMIC Residual
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Certificates will be "portfolio income" for purposes of the taxation of
taxpayers subject to limitations under Section 469 of the Code on the
deductibility of "passive losses".
A holder of a REMIC Residual Certificate that purchased such Certificate
from a prior holder of such Certificate also will be required to report on its
federal income tax return amounts representing its daily share of the taxable
income (or net loss) of the REMIC for each day that it holds such REMIC Residual
Certificate. Those daily amounts generally will equal the amounts of taxable
income or net loss determined as described above. The Committee Report indicates
that certain modifications of the general rules may be made, by regulations,
legislation or otherwise, to reduce (or increase) the income of a REMIC Residual
Certificateholder that purchased such REMIC Residual Certificate from a prior
holder of such Certificate at a price greater than (or less than) the adjusted
basis (as defined below) such REMIC Residual Certificate would have had in the
hands of an original holder of such Certificate. The REMIC Regulations, however,
do not provide for any such modifications.
Any payments received by a holder of a REMIC Residual Certificate in
connection with the acquisition of such REMIC Residual Certificate will be taken
into account in determining the income of such holder for federal income tax
purposes. Although it appears likely that any such payment would be includible
in income immediately upon its receipt, the IRS might assert that such payment
should be included in income over time according to an amortization schedule or
according to some other method. Because of the uncertainty concerning the
treatment of such payments, holders of REMIC Residual Certificates should
consult their tax advisors concerning the treatment of such payments for income
tax purposes.
The amount of income REMIC Residual Certificateholders will be required to
report (or the tax liability associated with such income) may exceed the amount
of cash distributions received from the REMIC for the corresponding period.
Consequently, REMIC Residual Certificateholders should have other sources of
funds sufficient to pay any federal income taxes due as a result of their
ownership of REMIC Residual Certificates or unrelated deductions against which
income may be offset, subject to the rules relating to "excess inclusions",
residual interests without "significant value" and "noneconomic" residual
interests discussed below. The fact that the tax liability associated with the
income allocated to REMIC Residual Certificateholders may exceed the cash
distribution received by such REMIC Residual Certificateholders for the
corresponding period may significantly adversely affect such REMIC Residual
Certificateholders' after-tax rate of return.
TAXABLE INCOME OF THE REMIC. The taxable income of the REMIC will equal the
income from the Mortgage Loans and other assets of the REMIC plus any
cancellation of indebtedness income due to the allocation of realized losses to
REMIC Regular Certificates, less the deductions allowed to the REMIC for
interest (including original issue discount and reduced by any premium on
issuance) on the REMIC Regular Certificates (and any other class of REMIC
Certificates constituting "regular interests" in the REMIC not offered hereby),
amortization of any premium on the Mortgage Loans, bad debt losses with respect
to the Mortgage Loans and, except as described below, for servicing,
administrative and other expenses.
For purposes of determining its taxable income, the REMIC will have an
initial aggregate basis in its assets equal to the sum of the issue prices of
all REMIC Certificates (or, if a class of REMIC Certificates is not sold
initially, their fair market values). Such aggregate basis will be allocated
among the Mortgage Loans and the other assets of the REMIC in proportion to
their respective fair market values. The issue price of any REMIC Certificates
offered hereby will be determined in the manner described above under
"--Taxation of Owners of REMIC Regular Certificates--Original Issue Discount".
The issue price of a REMIC Certificate received in exchange for an interest in
the Mortgage Loans or other property will equal the fair market value of such
interests in the Mortgage Loans or other property. Accordingly, if one or more
classes of REMIC Certificates are retained initially rather than sold, the
Master Servicer or the
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Trustee may be required to estimate the fair market value of such interests in
order to determine the basis of the REMIC in the Mortgage Loans and other
property held by the REMIC.
Subject to possible application of the DE MINIMIS rules, the method of
accrual by the REMIC of original issue discount income and market discount
income with respect to Mortgage Loans that it holds will be equivalent to the
method for accruing original issue discount income for holders of REMIC Regular
Certificates (that is, under the constant yield method taking into account the
Prepayment Assumption). However, a REMIC that acquires loans at a market
discount must include such market discount in income currently, as it accrues,
on a constant interest basis. See "--Taxation of Owners of REMIC Regular
Certificates" above, which describes a method for accruing such discount income
that is analogous to that required to be used by a REMIC as to Mortgage Loans
with market discount that it holds.
A Mortgage Loan will be deemed to have been acquired with discount (or
premium) to the extent that the REMIC's basis therein, determined as described
in the preceding paragraph, is less than (or greater than) its stated redemption
price. Any such discount will be includible in the income of the REMIC as it
accrues, in advance of receipt of the cash attributable to such income, under a
method similar to the method described above for accruing original issue
discount on the REMIC Regular Certificates. It is anticipated that each REMIC
will elect under Section 171 of the Code to amortize any premium on the Mortgage
Loans. Premium on any Mortgage Loan to which such election applies may be
amortized under a constant yield method, presumably taking into account a
Prepayment Assumption. Further, such an election would not apply to any Mortgage
Loan originated on or before September 27, 1985. Instead, premium on such a
Mortgage Loan should be allocated among the principal payments thereon and be
deductible by the REMIC as those payments become due or upon the prepayment of
such Mortgage Loan.
A REMIC will be allowed deductions for interest (including original issue
discount) on the REMIC Regular Certificates (including any other class of REMIC
Certificates constituting "regular interests" in the REMIC not offered hereby)
equal to the deductions that would be allowed if the REMIC Regular Certificates
(including any other class of REMIC Certificates constituting "regular
interests" in the REMIC not offered hereby) were indebtedness of the REMIC.
Original issue discount will be considered to accrue for this purpose as
described above under "--Taxation of Owners of REMIC Regular
Certificates--Original Issue Discount", except that the DE MINIMIS rule and the
adjustments for subsequent holders of REMIC Regular Certificates (including any
other class of REMIC Certificates constituting "regular interests" in the REMIC
not offered hereby) described therein will not apply.
If a class of REMIC Regular Certificates is issued at a price in excess of
the stated redemption price of such class (such excess, "Issue Premium"), the
net amount of interest deductions that are allowed the REMIC in each taxable
year with respect to the REMIC Regular Certificates of such class will be
reduced by an amount equal to the portion of the Issue Premium that is
considered to be amortized or repaid in that year. Although the matter is not
entirely certain, it is likely that Issue Premium would be amortized under a
constant yield method in a manner analogous to the method of accruing original
issue discount described above under "--Taxation of Owners of REMIC Regular
Certificates--Original Issue Discount".
As a general rule, the taxable income of a REMIC will be determined in the
same manner as if the REMIC were an individual having the calendar year as its
taxable year and using the accrual method of accounting. However, no item of
income, gain, loss or deduction allocable to a prohibited transaction will be
taken into account. See "--Prohibited Transactions Tax and Other Taxes" below.
Further, the limitation on miscellaneous itemized deductions imposed on
individuals by Section 67 of the Code (which allows such deductions only to the
extent they exceed in the aggregate two percent of the taxpayer's adjusted gross
income) will not be applied at the REMIC level so that the REMIC will be allowed
deductions for servicing, administrative and other non-interest expenses in
determining its taxable income. All such expenses will be allocated as a
separate item to the holders of REMIC Certificates, subject to the
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limitation of Section 67 of the Code. See "--Possible Pass-Through of
Miscellaneous Itemized Deductions". If the deductions allowed to the REMIC
exceed its gross income for a calendar quarter, such excess will be the net loss
for the REMIC for that calendar quarter.
BASIS RULES, NET LOSSES AND DISTRIBUTIONS. The adjusted basis of a REMIC
Residual Certificate will be equal to the amount paid for such REMIC Residual
Certificate, increased by amounts included in the income of the REMIC Residual
Certificateholder and decreased (but not below zero) by distributions made, and
by net losses allocated, to such REMIC Residual Certificateholder.
A REMIC Residual Certificateholder is not allowed to take into account any
net loss for any calendar quarter to the extent such net loss exceeds such REMIC
Residual Certificateholder's adjusted basis in its REMIC Residual Certificate as
of the close of such calendar quarter (determined without regard to such net
loss). Any loss that is not currently deductible by reason of this limitation
may be carried forward indefinitely to future calendar quarters and, subject to
the same limitation, may be used only to offset income from the REMIC Residual
Certificate. The ability of REMIC Residual Certificateholders to deduct net
losses may be subject to additional limitations under the Code, as to which
REMIC Residual Certificateholders should consult their tax advisors.
Any distribution on a REMIC Residual Certificate will be treated as a
nontaxable return of capital to the extent it does not exceed the holder's
adjusted basis in such REMIC Residual Certificate. To the extent a distribution
on a REMIC Residual Certificate exceeds such adjusted basis, it will be treated
as gain from the sale of such REMIC Residual Certificate. Holders of certain
REMIC Residual Certificates may be entitled to distributions early in the term
of the related REMIC under circumstances in which their bases in such REMIC
Residual Certificates will not be sufficiently large that such distributions
will be treated as nontaxable returns of capital. Their bases in such REMIC
Residual Certificates will initially equal the amount paid for such REMIC
Residual Certificates and will be increased by their allocable shares of taxable
income of the Trust Fund. However, such bases increases may not occur until the
end of the calendar quarter, or perhaps the end of the calendar year, with
respect to which such REMIC taxable income is allocated to the REMIC Residual
Certificateholders. To the extent such REMIC Residual Certificateholders'
initial bases are less than the distributions to such REMIC Residual
Certificateholders, and increases in such initial bases either occur after such
distributions or (together with their initial bases) are less than the amount of
such distributions, gain will be recognized to such REMIC Residual
Certificateholders on such distributions and will be treated as gain from the
sale of their REMIC Residual Certificates.
The effect of these rules is that a REMIC Residual Certificateholder may not
amortize its basis in a REMIC Residual Certificate, but may only recover its
basis through distributions, through the deduction of any net losses of the
REMIC or upon the sale of its REMIC Residual Certificate. See "--Sales of REMIC
Certificates". For a discussion of possible modifications of these rules that
may require adjustments to income of a holder of a REMIC Residual Certificate
other than an original holder in order to reflect any difference between the
cost of such REMIC Residual Certificate to such REMIC Residual Certificateholder
and the adjusted basis such REMIC Residual Certificate would have in the hands
of an original holder, see "--Taxation of Owners of REMIC Residual
Certificates--General".
EXCESS INCLUSIONS. Any "excess inclusions" with respect to a REMIC Residual
Certificate will, with an exception discussed below for certain REMIC Residual
Certificates held by thrift institutions, be subject to federal income tax in
all events.
In general, the "excess inclusions" with respect to a REMIC Residual
Certificate for any calendar quarter will be the excess, if any, of (i) the sum
of the daily portions of REMIC taxable income allocable to such REMIC Residual
Certificate over (ii) the sum of the "daily accruals" (as defined below) for
each day during such quarter that such REMIC Residual Certificate was held by
such REMIC Residual Certificateholder. The daily accruals of a REMIC Residual
Certificateholder will be determined by allocating to each day during a calendar
quarter its ratable portion of the product of the "adjusted issue price" of the
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REMIC Residual Certificate at the beginning of the calendar quarter and 120% of
the "long-term Federal rate" in effect on the Closing Date. For this purpose,
the adjusted issue price of a REMIC Residual Certificate as of the beginning of
any calendar quarter will be equal to the issue price of the REMIC Residual
Certificate, increased by the sum of the daily accruals for all prior quarters
and decreased (but not below zero) by any distributions made with respect to
such REMIC Residual Certificate before the beginning of such quarter. The issue
price of a REMIC Residual Certificate is the initial offering price to the
public (excluding bond houses and brokers) at which a substantial amount of the
REMIC Residual Certificates were sold. The "long-term Federal rate" is an
average of current yields on Treasury securities with a remaining term of
greater than nine years, computed and published monthly by the IRS.
For REMIC Residual Certificateholders, an excess inclusion (i) will not be
permitted to be offset by deductions, losses or loss carryovers from other
activities, (ii) will be treated as "unrelated business taxable income" to an
otherwise tax-exempt organization and (iii) will not be eligible for any rate
reduction or exemption under any applicable tax treaty with respect to the 30%
United States withholding tax imposed on distributions to REMIC Residual
Certificateholders that are foreign investors. See, however, "-- Foreign
Investors in REMIC Certificates" below.
As an exception to the general rules described above, thrift institutions
are allowed to offset their excess inclusions with unrelated deductions, losses
or loss carryovers, but only if the REMIC Residual Certificates are considered
to have "significant value". The REMIC Regulations provide that in order to be
treated as having significant value, the REMIC Residual Certificates must have
an aggregate issue price, at least equal to two percent of the aggregate issue
prices of all of the related REMIC's Regular and Residual Certificates. In
addition, based on the Prepayment Assumption, the anticipated weighted average
life of the REMIC Residual Certificates must equal or exceed 20% of the
anticipated weighted average life of the REMIC, based on the Prepayment
Assumption and on any required or permitted cleanup calls or required
liquidation provided for in the REMIC's organizational documents. Although it
has not done so, the Treasury also has authority to issue regulations that would
treat the entire amount of income accruing on a REMIC Residual Certificate as an
excess inclusion if the REMIC Residual Certificates are considered not to have
"significant value". The related Prospectus Supplement will disclose whether
offered REMIC Residual Certificates may be considered to have "significant
value" under the REMIC Regulations; provided, however, that any disclosure that
a REMIC Residual Certificate will have "significant value" will be based upon
certain assumptions, and the Depositor will make no representation that a REMIC
Residual Certificate will have "significant value" for purposes of the
above-described rules. The above-described exception for thrift institutions
applies only to those residual interests held directly by, and deductions,
losses and loss carryovers incurred by, such institutions (and not by other
members of an affiliated group of corporations filing a consolidated income tax
return) or by certain wholly owned direct subsidiaries of such institutions
formed or operated exclusively in connection with the organization and operation
of one or more REMICs.
In the case of any REMIC Residual Certificates held by a real estate
investment trust, the aggregate excess inclusions with respect to such REMIC
Residual Certificates, reduced (but not below zero) by the real estate
investment trust taxable income (within the meaning of Section 857(b)(2) of the
Code, excluding any net capital gain), will be allocated among the shareholders
of such trust in proportion to the dividends received by such shareholders from
such trust, and any amount so allocated will be treated as an excess inclusion
with respect to a REMIC Residual Certificate as if held directly by such
shareholder. Treasury regulations yet to be issued could apply a similar rule to
regulated investment companies, common trust funds and certain cooperatives; the
REMIC Regulations currently do not address this subject.
NONECONOMIC REMIC RESIDUAL CERTIFICATES. Under the REMIC Regulations,
transfers of "noneconomic" REMIC Residual Certificates will be disregarded for
all federal income tax purposes if "a significant purpose of the transfer was to
enable the transferor to impede the assessment or collection of tax". If such
transfer is disregarded, the purported transferor will continue to remain liable
for any taxes
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due with respect to the income on such "noneconomic" REMIC Residual Certificate.
The REMIC Regulations provide that a REMIC Residual Certificate is noneconomic
unless, based on the Prepayment Assumption and on any required or permitted
cleanup calls, or required liquidation provided for in the REMIC's
organizational documents, (i) the present value of the expected future
distributions (discounted using the "applicable Federal rate" for obligations
whose term ends on the close of the last quarter in which excess inclusions are
expected to accrue with respect to the REMIC Residual Certificate, which rate is
computed and published monthly by the IRS) on the REMIC Residual Certificate
equals at least the present value of the expected tax on the anticipated excess
inclusions and (ii) the transferor reasonably expects that the transferee will
receive distributions with respect to the REMIC Residual Certificate at or after
the time the taxes accrue on the anticipated excess inclusions in an amount
sufficient to satisfy the accrued taxes. Accordingly, all transfers of REMIC
Residual Certificates that may constitute noneconomic residual interests will be
subject to certain restrictions under the terms of the related Pooling Agreement
that are intended to reduce the possibility of any such transfer being
disregarded. Such restrictions will require each party to a transfer to provide
an affidavit that no purpose of such transfer is to impede the assessment or
collection of tax, including certain representations as to the financial
condition of the prospective transferee, as to which the transferor is also
required to make a reasonable investigation to determine such transferee's
historic payment of its debts and ability to continue to pay its debts as they
come due in the future. Prior to purchasing a REMIC Residual Certificate,
prospective purchasers should consider the possibility that a purported transfer
of such REMIC Residual Certificate by such a purchaser to another purchaser at
some future date may be disregarded in accordance with the above-described rules
which would result in the retention of tax liability by such purchaser.
The related Prospectus Supplement will disclose whether offered REMIC
Residual Certificates may be considered "noneconomic" residual interests under
the REMIC Regulations; provided, however, that any disclosure that a REMIC
Residual Certificate will not be considered "noneconomic" will be based upon
certain assumptions, and the Depositor will make no representation that a REMIC
Residual Certificate will not be considered "noneconomic" for purposes of the
above-described rules. See "-- Taxation of Owners of REMIC Residual
Certificates--Foreign Investors in REMIC Certificates" below for additional
restrictions applicable to transfers of certain REMIC Residual Certificates to
foreign persons.
MARK-TO-MARKET RULES. On December 24, 1996, the IRS released final
regulations (the "Mark-to-Market Regulations") relating to the requirement that
a securities dealer mark to market securities held for sale to customers. This
mark-to-market requirement applies to all securities owned by a dealer except to
the extent that the dealer has specifically identified a security as held for
investment. The Mark-to-Market Regulations provide that for purposes of this
mark-to-market requirement, a REMIC Residual Certificate issued after January 4,
1995 is not treated as a security and thus may not be marked to market.
Prospective purchasers of a REMIC Residual Certificate should consult their tax
advisors regarding the possible application of the mark-to-market requirement to
REMIC Residual Certificates.
POSSIBLE PASS-THROUGH OF MISCELLANEOUS ITEMIZED DEDUCTIONS. Fees and
expenses of a REMIC generally will be allocated to the holders of the related
REMIC Residual Certificates. The applicable Treasury regulations indicate,
however, that in the case of a REMIC that is similar to a single class grantor
trust, all or a portion of such fees and expenses should be allocated to the
holders of the related REMIC Regular Certificates. Unless otherwise stated in
the related Prospectus Supplement, such fees and expenses will be allocated to
holders of the related REMIC Residual Certificates in their entirety and not to
the holders of the related REMIC Regular Certificates.
With respect to REMIC Residual Certificates or REMIC Regular Certificates
the holders of which receive an allocation of fees and expenses in accordance
with the preceding discussion, if any holder thereof is an individual, estate or
trust, or a "pass-through entity" beneficially owned by one or more individuals,
estates or trusts, (i) an amount equal to such individual's, estate's or trust's
share of such fees and expenses will be added to the gross income of such holder
and (ii) such individual's, estate's or trust's share of such fees and expenses
will be treated as a miscellaneous itemized deduction allowable subject to
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the limitation of Section 67 of the Code, which permits such deductions only to
the extent they exceed in the aggregate two percent of a taxpayer's adjusted
gross income. In addition, Section 68 of the Code provides that the amount of
itemized deductions otherwise allowable for an individual whose adjusted gross
income exceeds a specified amount will be reduced by the lesser of (x) three
percent of the excess of the individual's adjusted gross income over such amount
or (y) 80% of the amount of itemized deductions otherwise allowable for the
taxable year. The amount of additional taxable income reportable by REMIC
Certificateholders that are subject to the limitations of either Section 67 or
Section 68 of the Code may be substantial. Furthermore, in determining the
alternative minimum taxable income of such a holder of a REMIC Certificate that
is an individual, estate or trust, or a "pass-through entity" beneficially owned
by one or more individuals, estates or trusts, no deduction will be allowed for
such holder's allocable portion of servicing fees and other miscellaneous
itemized deductions of the REMIC, even though an amount equal to the amount of
such fees and other deductions will be included in such holder's gross income.
Accordingly, such REMIC Certificates may not be appropriate investments for
individuals, estates or trusts, or pass-through entities beneficially owned by
one or more individuals, estates or trusts. Such prospective investors should
carefully consult with their own tax advisors prior to making an investment in
such Certificates.
SALES OF REMIC CERTIFICATES. If a REMIC Certificate is sold, the selling
Certificateholder will recognize gain or loss equal to the difference between
the amount realized on the sale and its adjusted basis in the REMIC Certificate.
The adjusted basis of a REMIC Regular Certificate generally will equal the cost
of such REMIC Regular Certificate to such Certificateholder, increased by income
reported by such Certificateholder with respect to such REMIC Regular
Certificate (including original issue discount and market discount income) and
reduced (but not below zero) by distributions on such REMIC Regular Certificate
received by such Certificateholder and by any amortized premium. The adjusted
basis of a REMIC Residual Certificate will be determined as described under
"--Basis Rules, Net Losses and Distributions". Except as provided in the
following two paragraphs, any such gain or loss will be capital gain or loss,
provided such REMIC Certificate is held as a capital asset (generally, property
held for investment) within the meaning of Section 1221 of the Code. The Code as
of the date of this Prospectus provides for a top marginal tax rate of 39.6% for
individuals and a maximum marginal rate for long-term capital gains for
individuals of 20%. No such rate differential exists for corporations. In
addition, the distinction between a capital gain or loss and ordinary income or
loss remains relevant for other purposes.
A consideration for holders of the Class IO Certificates concerns the
constructive sale provision of the Code added by the Taxpayer Relief Act of 1997
which requires the recognition of gain upon the "constructive sale of an
appreciated financial position". A constructive sale of an appreciated financial
position occurs if a taxpayer enters into certain transactions or series of such
transactions that have the effect of substantially eliminating the taxpayer's
risk of loss and opportunity for gain with respect to the financial instrument.
For purposes of determining whether an asset may be subject to a constructive
sale, an "appreciated financial position" does not include a position with
respect to a debt instrument if the debt instrument (i) unconditionally entitles
the holder to receive a specified principal amount, (ii) pays interest at a
fixed or variable rate, and (iii) is not convertible (directly or indirectly)
into the stock of the issuer or a related person. Accordingly, only the Class IO
Certificates could be subject to this provision and only if a holder of a Class
IO Certificate engages in a constructive sale transaction.
Gain from the sale of a REMIC Regular Certificate that might otherwise be
capital gain will be treated as ordinary income to the extent such gain does not
exceed the excess, if any, of (i) the amount that would have been includible in
the seller's income with respect to such REMIC Regular Certificate assuming that
income had accrued thereon at a rate equal to 110% of the "applicable Federal
rate" (generally, a rate based on an average of current yields on Treasury
securities having a maturity comparable to that of the Certificate based on the
application of the Prepayment Assumption to such Certificate, which rate is
computed and published monthly by the IRS), determined as of the date of
purchase of such REMIC Regular Certificate, over (ii) the amount of ordinary
income actually includible
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in the seller's income prior to such sale. In addition, gain recognized on the
sale of a REMIC Regular Certificate by a seller who purchased such REMIC Regular
Certificate at a market discount will be taxable as ordinary income in an amount
not exceeding the portion of such discount that accrued during the period such
REMIC Certificate was held by such holder, reduced by any market discount
included in income under the rules described above under "--Taxation of Owners
of REMIC Regular Certificates--Market Discount" and "--Premium".
REMIC Certificates will be "evidences of indebtedness" within the meaning of
Section 582(c)(1) of the Code, so that gain or loss recognized from the sale of
a REMIC Certificate by a bank or thrift institution to which such section
applies will be ordinary income or loss.
A portion of any gain from the sale of a REMIC Regular Certificate that
might otherwise be capital gain may be treated as ordinary income to the extent
that such Certificate is held as part of a "conversion transaction" within the
meaning of Section 1258 of the Code. A conversion transaction generally is one
in which the taxpayer has taken two or more positions in the same or similar
property that reduce or eliminate market risk, if substantially all of the
taxpayer's return is attributable to the time value of the taxpayer's net
investment in such transaction. The amount of gain so realized in a conversion
transaction that is recharacterized as ordinary income generally will not exceed
the amount of interest that would have accrued on the taxpayer's net investment
at 120% of the appropriate "applicable Federal rate" (which rate is computed and
published monthly by the IRS) at the time the taxpayer enters into the
conversion transaction, subject to appropriate reduction for prior inclusion of
interest and other ordinary income items from the transaction.
Finally, a taxpayer may elect to have net capital gain taxed at ordinary
income rates rather than capital gains rates in order to include such net
capital gain in total net investment income for the taxable year, for purposes
of the rule that limits the deduction of interest on indebtedness incurred to
purchase or carry property held for investment to a taxpayer's net investment
income.
Except as may be provided in Treasury regulations yet to be issued, if the
seller of a REMIC Residual Certificate reacquires a REMIC Residual Certificate,
or acquires any other residual interest in a REMIC or any similar interest in a
"taxable mortgage pool" (as defined in Section 7701(i) of the Code) during the
period beginning six months before, and ending six months after, the date of
such sale, such sale will be subject to the "wash sale" rules of Section 1091 of
the Code. In that event, any loss realized by the REMIC Residual
Certificateholder on the sale will not be deductible, but instead will be added
to such REMIC Residual Certificateholder's adjusted basis in the newly acquired
asset.
PROHIBITED TRANSACTIONS TAX AND OTHER TAXES. The Code imposes a tax on
REMICs equal to 100% of the net income derived from "prohibited transactions" (a
"Prohibited Transactions Tax"). In general, subject to certain specified
exceptions, a prohibited transaction means the disposition of a Mortgage Loan,
the receipt of income from a source other than a Mortgage Loan or certain other
permitted investments, the receipt of compensation for services, or gain from
the disposition of an asset purchased with the payments on the Mortgage Loans
for temporary investment pending distribution on the REMIC Certificates. It is
not anticipated that the REMIC will engage in any prohibited transactions in
which it would recognize a material amount of net income.
In addition, certain contributions to a REMIC made after the day on which
the REMIC issues all of its interests could result in the imposition of a tax on
the REMIC equal to 100% of the value of the contributed property (a
"Contributions Tax"). Each Pooling Agreement will include provisions designed to
prevent the acceptance of any contributions that would be subject to such tax.
REMICs also are subject to federal income tax at the highest corporate rate
on "net income from foreclosure property", determined by reference to the rules
applicable to real estate investment trusts. "Net income from foreclosure
property" generally means gain from the sale of a foreclosure property that is
inventory property and gross income from foreclosure property other than
qualifying rents and other
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qualifying income for a real estate investment trust. Unless otherwise disclosed
in the related Prospectus Supplement, it is not anticipated that any REMIC will
recognize "net income from foreclosure property" subject to federal income tax.
Unless otherwise disclosed in the related Prospectus Supplement, it is not
anticipated that any material state or local income or franchise tax will be
imposed on any REMIC.
Unless otherwise stated in the related Prospectus Supplement, and to the
extent permitted by then applicable laws, any Prohibited Transactions Tax,
Contributions Tax, tax on "net income from foreclosure property" or state or
local income or franchise tax that may be imposed on the REMIC will be borne by
the related Master Servicer, Special Servicer or Trustee in any case out of its
own funds, provided that such person has sufficient assets to do so, and
provided further that such tax arises out of a breach of such person's
obligations under the related Pooling Agreement and in respect of compliance
with applicable laws and regulations. Any such tax not borne by a Master
Servicer, Special Servicer or Trustee will be charged against the related Trust
Fund resulting in a reduction in amounts payable to holders of the related REMIC
Certificates.
TAX AND RESTRICTIONS ON TRANSFERS OF REMIC RESIDUAL CERTIFICATES TO CERTAIN
ORGANIZATIONS. If a REMIC Residual Certificate is transferred to a
"disqualified organization" (as defined below), a tax would be imposed in an
amount (determined under the REMIC Regulations) equal to the product of (i) the
present value (discounted using the "applicable Federal rate" for obligations
whose term ends on the close of the last quarter in which excess inclusions are
expected to accrue with respect to the REMIC Residual Certificate, which rate is
computed and published monthly by the IRS) of the total anticipated excess
inclusions with respect to such REMIC Residual Certificate for periods after the
transfer and (ii) the highest marginal federal income tax rate applicable to
corporations. The anticipated excess inclusions must be determined as of the
date that the REMIC Residual Certificate is transferred and must be based on
events that have occurred up to the time of such transfer, the Prepayment
Assumption and any required or permitted cleanup calls or required liquidation
provided for in the REMIC's organizational documents. Such a tax generally would
be imposed on the transferor of the REMIC Residual Certificate, except that
where such transfer is through an agent for a disqualified organization, the tax
would instead be imposed on such agent. However, a transferor of a REMIC
Residual Certificate would in no event be liable for such tax with respect to a
transfer if the transferee furnishes to the transferor an affidavit that the
transferee is not a disqualified organization and, as of the time of the
transfer, the transferor does not have actual knowledge that such affidavit is
false. Moreover, an entity will not qualify as a REMIC unless there are
reasonable arrangements designed to ensure that (x) residual interests in such
entity are not held by disqualified organizations and (y) information necessary
for the application of the tax described herein will be made available.
Restrictions on the transfer of REMIC Residual Certificates and certain other
provisions that are intended to meet this requirement will be included in the
Pooling Agreement, and will be discussed more fully in any Prospectus Supplement
relating to the offering of any REMIC Residual Certificate.
In addition, if a "pass-through entity" (as defined below) includes in
income excess inclusions with respect to a REMIC Residual Certificate, and a
disqualified organization is the record holder of an interest in such entity,
then a tax will be imposed on such entity equal to the product of (i) the amount
of excess inclusions on the REMIC Residual Certificate that are allocable to the
interest in the pass-through entity held by such disqualified organization and
(ii) the highest marginal federal income tax rate imposed on corporations. A
pass-through entity will not be subject to this tax for any period, however, if
each record holder of an interest in such pass-through entity furnishes to such
pass-through entity (x) such holder's social security number and a statement
under penalty of perjury that such social security number is that of the record
holder or (y) a statement under penalty of perjury that such record holder is
not a disqualified organization.
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For these purposes, a "disqualified organization" means (i) the United
States, any State or political subdivision thereof, any foreign government, any
international organization, or any agency or instrumentality of the foregoing
(but would not include instrumentalities described in Section 168(h)(2)(D) of
the Code or the FHLMC), (ii) any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from federal income tax,
unless it is subject to the tax imposed by Section 511 of the Code or (iii) any
organization described in Section 1381(a)(2)(C) of the Code. For these purposes,
a "pass-through entity" means any regulated investment company, real estate
investment trust, trust, partnership or certain other entities described in
Section 860E(e)(6) of the Code. In addition, a person holding an interest in a
pass-through entity as a nominee for another person will, with respect to such
interest, be treated as a pass-through entity.
TERMINATION. A REMIC will terminate immediately after the Distribution Date
following receipt by the REMIC of the final payment in respect of the Mortgage
Loans or upon a sale of the REMIC's assets following the adoption by the REMIC
of a plan of complete liquidation. The last distribution on a REMIC Regular
Certificate will be treated as a payment in retirement of a debt instrument. In
the case of a REMIC Residual Certificate, if the last distribution on such REMIC
Residual Certificate is less than the REMIC Residual Certificateholder's
adjusted basis in such REMIC Residual Certificate, such REMIC Residual
Certificateholder should (but may not) be treated as realizing a loss equal to
the amount of such difference. Such loss may be treated as a capital loss and
may be subject to the "wash sale" rules of Section 1091 of the Code.
REPORTING AND OTHER ADMINISTRATIVE MATTERS. Solely for purposes of the
administrative provisions of the Code, the REMIC will be treated as a
partnership and REMIC Residual Certificateholders will be treated as partners.
Unless otherwise stated in the related Prospectus Supplement, either the Trustee
or the Master Servicer generally will hold at least a nominal amount of REMIC
Residual Certificates, will file REMIC federal income tax returns on behalf of
the related REMIC, and will be designated as and will act as the "tax matters
person" with respect to the REMIC in all respects.
As the tax matters person, the Trustee or the Master Servicer, as the case
may be, will, subject to certain notice requirements and various restrictions
and limitations, generally have the authority to act on behalf of the REMIC and
the REMIC Residual Certificateholders in connection with the administrative and
judicial review of items of income, deduction, gain or loss of the REMIC, as
well as the REMIC's classification. REMIC Residual Certificateholders will
generally be required to report such REMIC items consistently with their
treatment on the related REMIC's tax return and may in some circumstances be
bound by a settlement agreement between the Trustee or the Master Servicer, as
the case may be, as tax matters person, and the IRS concerning any such REMIC
item. Adjustments made to the REMIC tax return may require a REMIC Residual
Certificateholder to make corresponding adjustments on its return, and an audit
of the REMIC's tax return, or the adjustments resulting from such an audit,
could result in an audit of a REMIC Residual Certificateholder's return. No
REMIC will be registered as a tax shelter pursuant to Section 6111 of the Code
because it is not anticipated that any REMIC will have a net loss for any of the
first five taxable years of its existence. Any person that holds a REMIC
Residual Certificate as a nominee for another person may be required to furnish
to the related REMIC, in a manner to be provided in Treasury regulations, the
name and address of such person and other information.
Reporting of interest income, including any original issue discount, with
respect to REMIC Regular Certificates is required annually, and may be required
more frequently under Treasury regulations. These information reports generally
are required to be sent to individual holders of REMIC Regular Interests and the
IRS; holders of REMIC Regular Certificates that are corporations, trusts,
securities dealers and certain other non-individuals will be provided interest
and original issue discount income information and the information set forth in
the following paragraph upon request in accordance with the requirements of the
applicable regulations. The information must be provided by the later of 30 days
after the end of the quarter for which the information was requested, or two
weeks after the receipt of the request. The REMIC must also comply with rules
requiring a REMIC Regular Certificate issued with original issue
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discount to disclose on its face the amount of original issue discount and the
issue date, and requiring such information to be reported to the IRS. Reporting
with respect to the REMIC Residual Certificates, including income, excess,
inclusions, investment expenses and relevant information regarding qualification
of the REMIC's assets will be made as required under the Treasury regulations,
generally on a quarterly basis.
As applicable, the REMIC Regular Certificate information reports will
include a statement of the adjusted issue price of the REMIC Regular Certificate
at the beginning of each accrual period. In addition, the reports will include
information required by regulations with respect to computing the accrual of any
market discount. Because exact computation of the accrual of market discount on
a constant yield method would require information relating to the holder's
purchase price that the REMIC may not have, such regulations only require that
information pertaining to the appropriate proportionate method of accruing
market discount be provided. See "--Taxation of Owners of REMIC Regular
Certificates--Market Discount".
The responsibility for complying with the foregoing reporting rules will be
borne by either the Trustee or the Master Servicer, unless otherwise stated in
the related Prospectus Supplement.
BACKUP WITHHOLDING WITH RESPECT TO REMIC CERTIFICATES. Payments of interest
and principal, as well as payments of proceeds from the sale of REMIC
Certificates, may be subject to the "backup withholding tax" under Section 3406
of the Code at a rate of 31% if recipients of such payments fail to furnish to
the payor certain information, including their taxpayer identification numbers,
or otherwise fail to establish an exemption from such tax. Any amounts deducted
and withheld from a distribution to a recipient would be allowed as a credit
against such recipient's federal income tax. Furthermore, certain penalties may
be imposed by the IRS on a recipient of payments that is required to supply
information but that does not do so in the proper manner.
FOREIGN INVESTORS IN REMIC CERTIFICATES. A REMIC Regular Certificateholder
that is not a "United States person" (as defined below) and is not subject to
federal income tax as a result of any direct or indirect connection to the
United States in addition to its ownership of a REMIC Regular Certificate will
not, unless otherwise disclosed in the related Prospectus Supplement, be subject
to United States federal income or withholding tax in respect of a distribution
on a REMIC Regular Certificate, provided that the holder complies to the extent
necessary with certain identification requirements (including delivery of a
statement, signed by the Certificateholder under penalties of perjury,
certifying that such Certificateholder is not a United States person and
providing the name and address of such Certificateholder). For these purposes,
"United States person" means a citizen or resident of the United States, a
corporation, partnership or other entity created or organized in, or under the
laws of, the United States or any political subdivision thereof, an estate whose
income from sources without the United States is includible in gross income for
United States federal income tax purposes regardless of its connection with the
conduct of a trade or business within the United States or a trust if (a) a
court within the United States is able to exercise primary supervision over the
administration of the trust, and (b) one or more United States persons have the
authority to control all substantial decisions of the trust. It is possible that
the IRS may assert that the foregoing tax exemption should not apply with
respect to interest distributed on a REMIC Regular Certificate that is held by
(i) a REMIC Residual Certificateholder that owns directly or indirectly a 10% or
greater interest in the REMIC Residual Certificates or (ii) to the extent of the
amount of interest paid by the related Mortgagor on a particular Mortgage Loan,
(A) a REMIC Regular Certificateholder that owns a 10% or greater ownership
interest in such Mortgagor or (B) a REMIC Regular Certificateholder that is a
controlled foreign corporation as to the United States of which such Mortgagor
is a "United States shareholder" within the meaning of Section 951(b) of the
Code. If the holder does not qualify for exemption, distributions of interest,
including distributions in respect of accrued original issue discount, to such
holder may be subject to a tax rate of 30%, subject to reduction under any
applicable tax treaty.
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In addition, the foregoing rules will not apply to exempt a United States
shareholder of a controlled foreign corporation from taxation on such United
States shareholder's allocable portion of the interest income received by such
controlled foreign corporation.
Further, it appears that a REMIC Regular Certificate would not be included
in the estate of a nonresident alien individual and would not be subject to
United States estate taxes. However, Certificateholders who are non-resident
alien individuals should consult their tax advisors concerning this question.
Transfers of REMIC Residual Certificates to investors that are not United
States persons will be prohibited under the related Pooling Agreement.
GRANTOR TRUST FUNDS
CLASSIFICATION OF GRANTOR TRUST FUNDS. With respect to each series of
Grantor Trust Certificates, counsel to the Depositor will deliver its opinion to
the effect that, assuming compliance with all provisions of the related Pooling
Agreement, the related Grantor Trust Fund will be classified as a grantor trust
under subpart E, part I of subchapter J of the Code and not as a partnership or
an association taxable as a corporation. Accordingly, each holder of a Grantor
Trust Certificate generally will be treated as the owner of an interest in the
Mortgage Loans included in the Grantor Trust Fund.
For purposes of the following discussion, a Grantor Trust Certificate
representing an undivided equitable ownership interest in the principal of the
Mortgage Loans constituting the related Grantor Trust Fund, together with
interest thereon at a pass-through rate, will be referred to as a "Grantor Trust
Fractional Interest Certificate". A Grantor Trust Certificate representing
ownership of all or a portion of the difference between interest paid on the
Mortgage Loans constituting the related Grantor Trust Fund (net of normal
administration fees and any spread) and interest paid to the holders of Grantor
Trust Fractional Interest Certificates issued with respect to such Grantor Trust
Fund will be referred to as a "Grantor Trust Strip Certificate". A Grantor Trust
Strip Certificate may also evidence a nominal ownership interest in the
principal of the Mortgage Loans constituting the related Grantor Trust Fund.
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CHARACTERIZATION OF INVESTMENTS IN GRANTOR TRUST CERTIFICATES
GRANTOR TRUST FRACTIONAL INTEREST CERTIFICATES. In the case of Grantor
Trust Fractional Interest Certificates, unless otherwise disclosed in the
related Prospectus Supplement, counsel to the Depositor will deliver an opinion
that, in general, Grantor Trust Fractional Interest Certificates will represent
interests in (i) assets described in Section 7701(a)(19)(C) of the Code; (ii)
"obligation[s] (including any participation or certificate of beneficial
ownership therein) which . . . [are] principally secured by an interest in real
property" within the meaning of Section 860G(a)(3)(A) of the Code; and (iii)
"real estate assets" within the meaning of Section 856(c)(5)(A) of the Code. In
addition, counsel to the Depositor will deliver an opinion that interest on
Grantor Trust Fractional Interest Certificates will to the same extent be
considered "interest on obligations secured by mortgages on real property or on
interests in real property" within the meaning of Section 856(c)(3)(B) of the
Code.
GRANTOR TRUST STRIP CERTIFICATES. Even if Grantor Trust Strip Certificates
evidence an interest in a Grantor Trust Fund consisting of Mortgage Loans that
are assets described in Section 7701(a)(19)(C) of the Code and "real estate
assets" within the meaning of Section 856(c)(5)(A) of the Code, and the interest
on which is "interest on obligations secured by mortgages on real property"
within the meaning of Section 856(c)(3)(B) of the Code, it is unclear whether
the Grantor Trust Strip Certificates, and the income therefrom, will be so
characterized. However, the policies underlying such sections (namely, to
encourage or require investments in mortgage loans by thrift institutions and
real estate investment trusts) may suggest that such characterization is
appropriate. Counsel to the Depositor will not deliver any opinion on these
questions. Prospective purchasers to which such characterization of an
investment in Grantor Trust Strip Certificates is material should consult their
tax advisors regarding whether the Grantor Trust Strip Certificates, and the
income therefrom, will be so characterized.
The Grantor Trust Strip Certificates will be "obligation[s] (including any
participation or certificate of beneficial ownership therein) which . . .
[are]principally secured by an interest in real property" within the meaning of
Section 860G(a)(3)(A) of the Code.
TAXATION OF OWNERS OF GRANTOR TRUST FRACTIONAL INTEREST CERTIFICATES
GENERAL. Holders of a particular series of Grantor Trust Fractional
Interest Certificates generally will be required to report on their federal
income tax returns their shares of the entire income from the Mortgage Loans
(including amounts used to pay reasonable servicing fees and other expenses) and
will be entitled to deduct their shares of any such reasonable servicing fees
and other expenses. Because of stripped interests, market or original issue
discount, or premium, the amount includible in income on account of a Grantor
Trust Fractional Interest Certificate may differ significantly from the amount
distributable thereon representing interest on the Mortgage Loans. Under Section
67 of the Code, an individual, estate or trust holding a Grantor Trust
Fractional Interest Certificate, directly or through certain pass-through
entities, will be allowed a deduction for such reasonable servicing fees and
expenses only to the extent that the aggregate of such holder's miscellaneous
itemized deductions exceeds two percent of such holder's adjusted gross income.
In addition, Section 68 of the Code provides that the amount of itemized
deductions otherwise allowable for an individual whose adjusted gross income
exceeds a specified amount will be reduced by the lesser of (i) three percent of
the excess of the individual's adjusted gross income over such amount or (ii)
80% of the amount of itemized deductions otherwise allowable for the taxable
year. The amount of additional taxable income reportable by holders of Grantor
Trust Fractional Interest Certificates who are subject to the limitations of
either Section 67 or Section 68 of the Code may be substantial. Further,
Certificateholders (other than corporations) subject to the alternative minimum
tax may not deduct miscellaneous itemized deductions in determining their
alternative minimum taxable income. Although it is not entirely clear, it
appears that in transactions in which multiple classes of Grantor Trust
Certificates (including Grantor Trust Strip Certificates) are issued, such fees
and expenses should be allocated among the classes of Grantor Trust Certificates
using a method that recognizes that each such class benefits from the related
services. In the absence of statutory or
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administrative clarification as to the method to be used, it currently is
intended to base information returns or reports to the IRS and
Certificateholders on a method that allocates such expenses among classes of
Grantor Trust Certificates with respect to each period based on the
distributions made to each such class during that period.
The federal income tax treatment of Grantor Trust Fractional Interest
Certificates of any series will depend on whether they are subject to the
"stripped bond" rules of Section 1286 of the Code. Grantor Trust Fractional
Interest Certificates may be subject to those rules if (i) a class of Grantor
Trust Strip Certificates is issued as part of the same series of Certificates or
(ii) the Depositor or any of its affiliates retains (for its own account or for
purposes of resale) a right to receive a specified portion of the interest
payable on a Mortgage Asset. Further, the IRS has ruled that an unreasonably
high servicing fee retained by a seller or servicer will be treated as a
retained ownership interest in mortgages that constitutes a stripped coupon. For
purposes of determining what constitutes reasonable servicing fees for various
types of mortgages the IRS has established certain "safe harbors". The servicing
fees paid with respect to the Mortgage Loans for certain series of Grantor Trust
Certificates may be higher than the "safe harbors" and, accordingly, may not
constitute reasonable servicing compensation. The related Prospectus Supplement
will include information regarding servicing fees paid to a Master Servicer, a
Special Servicer, any Sub-Servicer or their respective affiliates necessary to
determine whether the preceding "safe harbor" rules apply.
IF STRIPPED BOND RULES APPLY. If the stripped bond rules apply, each
Grantor Trust Fractional Interest Certificate will be treated as having been
issued with "original issue discount" within the meaning of Section 1273(a) of
the Code, subject, however, to the discussion below regarding the treatment of
certain stripped bonds as market discount bonds and the discussion regarding de
minimis market discount. See "--Taxation of Owners of Grantor Trust Fractional
Interest Certificates--Market Discount". Under the stripped bond rules, the
holder of a Grantor Trust Fractional Interest Certificate (whether a cash or
accrual method taxpayer) will be required to report interest income from its
Grantor Trust Fractional Interest Certificate for each month in an amount equal
to the income that accrues on such Certificate in that month calculated under a
constant yield method, in accordance with the rules of the Code relating to
original issue discount.
The original issue discount on a Grantor Trust Fractional Interest
Certificate will be the excess of such Certificate's stated redemption price
over its issue price. The issue price of a Grantor Trust Fractional Interest
Certificate as to any purchaser will be equal to the price paid by such
purchaser for the Grantor Trust Fractional Interest Certificate. The stated
redemption price of a Grantor Trust Fractional Interest Certificate will be the
sum of all payments to be made on such Certificate, other than "qualified stated
interest", if any, as well as such Certificate's share of reasonable servicing
fees and other expenses. See "-- Taxation of Owners of Grantor Trust Fractional
Interest Certificates--If Stripped Bond Rules Do Not Apply" for a definition of
"qualified stated interest". In general, the amount of such income that accrues
in any month would equal the product of such holder's adjusted basis in such
Grantor Trust Fractional Interest Certificate at the beginning of such month
(see "--Sales of Grantor Trust Certificates") and the yield of such Grantor
Trust Fractional Interest Certificate to such holder. Such yield would be
computed at the rate (compounded based on the regular interval between payment
dates) that, if used to discount the holder's share of future payments on the
Mortgage Loans, would cause the present value of those future payments to equal
the price at which the holder purchased such Certificate. In computing yield
under the stripped bond rules, a Certificateholder's share of future payments on
the Mortgage Loans will not include any payments made in respect of any spread
or any other ownership interest in the Mortgage Loans retained by the Depositor,
a Master Servicer, a Special Servicer, any Sub-Servicer or their respective
affiliates, but will include such Certificateholder's share of any reasonable
servicing fees and other expenses.
Section 1272(a)(6) of the Code requires (i) the use of a reasonable
prepayment assumption in accruing original issue discount and (ii) adjustments
in the accrual of original issue discount when
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prepayments do not conform to the prepayment assumption, with respect to certain
categories of debt instruments, and regulations could be adopted applying those
provisions to the Grantor Trust Fractional Interest Certificates. It is unclear
whether those provisions would be applicable to the Grantor Trust Fractional
Interest Certificates or whether use of a reasonable prepayment assumption may
be required or permitted without reliance on these rules. It is also uncertain,
if a prepayment assumption is used, whether the assumed prepayment rate would be
determined based on conditions at the time of the first sale of the Grantor
Trust Fractional Interest Certificate or, with respect to any holder, at the
time of purchase of the Grantor Trust Fractional Interest Certificate by that
holder. Certificateholders are advised to consult their own tax advisors
concerning reporting original issue discount in general and, in particular,
whether a prepayment assumption should be used in reporting original issue
discount with respect to Grantor Trust Fractional Interest Certificates.
In the case of a Grantor Trust Fractional Interest Certificate acquired at a
price equal to the principal amount of the Mortgage Loans allocable to such
Certificate, the use of a prepayment assumption generally would not have any
significant effect on the yield used in calculating accruals of interest income.
In the case, however, of a Grantor Trust Fractional Interest Certificate
acquired at a discount or premium (that is, at a price less than or greater than
such principal amount, respectively), the use of a reasonable prepayment
assumption would increase or decrease such yield, and thus accelerate or
decelerate, respectively, the reporting of income.
If a prepayment assumption is not used, then when a Mortgage Loan prepays in
full, the holder of a Grantor Trust Fractional Interest Certificate acquired at
a discount or a premium generally will recognize ordinary income or loss equal
to the difference between the portion of the prepaid principal amount of the
Mortgage Loan that is allocable to such Certificate and the portion of the
adjusted basis of such Certificate that is allocable to such Certificateholder's
interest in the Mortgage Loan. If a prepayment assumption is used, it appears
that no separate item of income or loss should be recognized upon a prepayment.
Instead, a prepayment should be treated as a partial payment of the stated
redemption price of the Grantor Trust Fractional Interest Certificate and
accounted for under a method similar to that described for taking account of
original issue discount on REMIC Regular Certificates. See "--Taxation of Owners
of REMIC Regular Certificates--Original Issue Discount". It is unclear whether
any other adjustments would be required to reflect differences between an
assumed prepayment rate and the actual rate of prepayments.
In the absence of statutory or administrative clarification, it is currently
intended to base information reports or returns to the IRS and
Certificateholders in transactions subject to the stripped bond rules on a
prepayment assumption (the "Stripped Bond Prepayment Assumption") that will be
disclosed in the related Prospectus Supplement and on a constant yield computed
using a representative initial offering price for each class of Certificates.
However, neither the Depositor nor any other person will make any representation
that the Mortgage Loans will in fact prepay at a rate conforming to such
Stripped Bond Prepayment Assumption or any other rate and Certificateholders
should bear in mind that the use of a representative initial offering price will
mean that such information returns or reports, even if otherwise accepted as
accurate by the IRS, will in any event be accurate only as to the initial
Certificateholders of each series who bought at that price.
Under Treasury regulation Section 1.1286-1T, certain stripped bonds are to
be treated as market discount bonds and, accordingly, any purchaser of such a
bond is to account for any discount on the bond as market discount rather than
original issue discount. This treatment only applies, however, if immediately
after the most recent disposition of the bond by a person stripping one or more
coupons from the bond and disposing of the bond or coupon (i) there is no
original issue discount (or only a DE MINIMIS amount of original issue discount)
or (ii) the annual stated rate of interest payable on the original bond is no
more than one percentage point lower than the gross interest rate payable on the
original mortgage loan (before subtracting any servicing fee or any stripped
coupon). If interest payable on a Grantor Trust Fractional Interest Certificate
is more than one percentage point lower than the gross interest rate payable on
the Mortgage Loans, the related Prospectus Supplement will disclose that fact.
If the original issue
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discount or market discount on a Grantor Trust Fractional Interest Certificate
determined under the stripped bond rules is less than 0.25% of the stated
redemption price multiplied by the weighted average maturity of the Mortgage
Loans, then such original issue discount or market discount will be considered
to be DE MINIMIS. Original issue discount or market discount of only a DE
MINIMIS amount will be included in income in the same manner as DE MINIMIS
original issue discount and market discount described in "--If Stripped Bond
Rules Do Not Apply" and "--Market Discount".
IF STRIPPED BOND RULES DO NOT APPLY. Subject to the discussion below on
original issue discount, if the stripped bond rules do not apply to a Grantor
Trust Fractional Interest Certificate, the Certificateholder will be required to
report its share of the interest income on the Mortgage Loans in accordance with
such Certificateholder's normal method of accounting. The original issue
discount rules will apply to a Grantor Trust Fractional Interest Certificate to
the extent it evidences an interest in Mortgage Loans issued with original issue
discount.
The original issue discount, if any, on the Mortgage Loans will equal the
difference between the stated redemption price of such Mortgage Loans and their
issue price. Under the OID Regulations, the stated redemption price is equal to
the total of all payments to be made on such Mortgage Loan other than "qualified
stated interest". "Qualified stated interest" includes interest that is
unconditionally payable at least annually at a single fixed rate, at a
"qualified floating rate", or at an "objective rate", a combination of a single
fixed rate and one or more "qualified floating rates" or one "qualified inverse
floating rate", or a combination of "qualified floating rates" that does not
operate in a manner that accelerates or defers interest payments on such
Mortgage Loan. In general, the issue price of a Mortgage Loan will be the amount
received by the borrower from the lender under the terms of the Mortgage Loan,
less any "points" paid by the borrower, and the stated redemption price of a
Mortgage Loan will equal its principal amount, unless the Mortgage Loan provides
for an initial below-market rate of interest or the acceleration or the deferral
of interest payments.
In the case of Mortgage Loans bearing adjustable or variable interest rates,
the related Prospectus Supplement will describe the manner in which such rules
will be applied with respect to those Mortgage Loans in preparing information
returns to the Certificateholders and the IRS.
Notwithstanding the general definition of original issue discount, original
issue discount will be considered to be DE MINIMIS if such original issue
discount is less than 0.25% of the stated redemption price multiplied by the
weighted average maturity of the Mortgage Loan. For this purpose, the weighted
average maturity of the Mortgage Loan will be computed as the sum of the amounts
determined, as to each payment included in the stated redemption price of such
Mortgage Loan, by multiplying (i) the number of complete years (rounding down
for partial years) from the issue date until such payment is expected to be made
by (ii) a fraction, the numerator of which is the amount of the payment and the
denominator of which is the stated redemption price of the Mortgage Loan. Under
the OID Regulations, original issue discount of only a de minimis amount (other
than DE MINIMIS original issue discount attributable to a so-called "teaser"
rate or initial interest holiday) will be included in income as each payment of
stated principal price is made, based on the product of the total amount of such
DE MINIMIS original issue discount and a fraction, the numerator of which is the
amount of each such payment and the denominator of which is the outstanding
stated principal amount of the Mortgage Loan. The OID Regulations also permit a
Certificateholder to elect to accrue DE MINIMIS original issue discount into
income currently based on a constant yield method. See "--Market Discount"
below.
If original issue discount is in excess of a DE MINIMIS amount, all original
issue discount with respect to a Mortgage Loan will be required to be accrued
and reported in income each month, based on a constant yield. The OID
Regulations suggest that no prepayment assumption is appropriate in computing
the yield on prepayable obligations issued with original issue discount. In the
absence of statutory or administrative clarification, it currently is not
intended to base information reports or returns to the IRS and
Certificateholders on the use of a prepayment assumption in transactions not
subject to the stripped bond rules.
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However, Section 1272(a)(6) of the Code may require that a prepayment assumption
be made in computing yield with respect to all mortgage-backed securities.
Certificateholders are advised to consult their own tax advisors concerning
whether a prepayment assumption should be used in reporting original issue
discount with respect to Grantor Trust Fractional Interest Certificates.
Certificateholders should refer to the related Prospectus Supplement with
respect to each series to determine whether and in what manner the original
issue discount rules will apply to Mortgage Loans in such series.
A purchaser of a Grantor Trust Fractional Interest Certificate that
purchases such Grantor Trust Fractional Interest Certificate at a cost less than
such Certificate's allocable portion of the aggregate remaining stated
redemption price of the Mortgage Loans held in the related Trust Fund will also
be required to include in gross income such Certificate's daily portions of any
original issue discount with respect to such Mortgage Loans. However, each such
daily portion will be reduced, if the cost of such Grantor Trust Fractional
Interest Certificate to such purchaser is in excess of such Certificate's
allocable portion of the aggregate "adjusted issue prices" of the Mortgage Loans
held in the related Trust Fund, approximately in proportion to the ratio such
excess bears to such Certificate's allocable portion of the aggregate original
issue discount remaining to be accrued on such Mortgage Loans. The adjusted
issue price of a Mortgage Loan on any given day equals the sum of (i) the
adjusted issue price (or, in the case of the first accrual period, the issue
price) of such Mortgage Loan at the beginning of the accrual period that
includes such day and (ii) the daily portions of original issue discount for all
days during such accrual period prior to such day. The adjusted issue price of a
Mortgage Loan at the beginning of any accrual period will equal the issue price
of such Mortgage Loan, increased by the aggregate amount of original issue
discount with respect to such Mortgage Loan that accrued in prior accrual
periods, and reduced by the amount of any payments made on such Mortgage Loan in
prior accrual periods of amounts included in its stated redemption price.
The Trustee or Master Servicer, as applicable, will provide to any holder of
a Grantor Trust Fractional Interest Certificate such information as such holder
may reasonably request from time to time with respect to original issue discount
accruing on Grantor Trust Fractional Interest Certificates. See "--Grantor Trust
Reporting" below.
MARKET DISCOUNT. If the stripped bond rules do not apply to the Grantor
Trust Fractional Interest Certificate, a Certificateholder may be subject to the
market discount rules of Sections 1276 through 1278 of the Code to the extent an
interest in a Mortgage Loan is considered to have been purchased at a "market
discount", that is, in the case of a Mortgage Loan issued without original issue
discount, at a purchase price less than its remaining stated redemption price
(as defined above), or in the case of a Mortgage Loan issued with original issue
discount, at a purchase price less than its adjusted issue price (as defined
above). If market discount is in excess of a DE MINIMIS amount (as described
below), the holder generally will be required to include in income in each month
the amount of such discount that has accrued (under the rules described in the
next paragraph) through such month that has not previously been included in
income, but limited, in the case of the portion of such discount that is
allocable to any Mortgage Loan, to the payment of stated redemption price on
such Mortgage Loan that is received by (or, in the case of accrual basis
Certificateholders, due to) the Trust Fund in that month. A Certificateholder
may elect to include market discount in income currently as it accrues (under a
constant yield method based on the yield of the Certificate to such holder)
rather than including it on a deferred basis in accordance with the foregoing.
If made, such election will apply to all market discount bonds acquired by such
Certificateholder during or after the first taxable year to which such election
applies. In addition, the OID Regulations would permit a Certificateholder to
elect to accrue all interest, discount (including DE MINIMIS market or original
issue discount) and premium in income as interest, based on a constant yield
method. If such an election were made with respect to a Mortgage Loan with
market discount, the Certificateholder would be deemed to have made an election
to currently include market discount in income with respect to all other debt
instruments having market discount that such Certificateholder
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acquires during the taxable year of the election and thereafter and, possibly,
previously acquired instruments. Similarly, a Certificateholder that made this
election for a Certificate acquired at a premium would be deemed to have made an
election to amortize bond premium with respect to all debt instruments having
amortizable bond premium that such Certificateholder owns or acquires. See
"--Taxation of Owners of REMIC Regular Certificates--Premium". Each of these
elections to accrue interest, discount and premium with respect to a Certificate
on a constant yield method or as interest is irrevocable.
Section 1276(b)(3) of the Code authorized the Treasury Department to issue
regulations providing for the method for accruing market discount on debt
instruments, the principal of which is payable in more than one installment.
Until such time as regulations are issued by the Treasury Department, certain
rules described in the Committee Report apply. Under those rules, in each
accrual period market discount on the Mortgage Loans should accrue, at the
Certificateholder's option: (i) on the basis of a constant yield method, (ii) in
the case of a Mortgage Loan issued without original issue discount, in an amount
that bears the same ratio to the total remaining market discount as the stated
interest paid in the accrual period bears to the total stated interest remaining
to be paid on the Mortgage Loan as of the beginning of the accrual period or
(iii) in the case of a Mortgage Loan issued with original issue discount, in an
amount that bears the same ratio to the total remaining market discount as the
original issue discount accrued in the accrual period bears to the total
original issue discount remaining at the beginning of the accrual period. The
prepayment assumption, if any, used in calculating the accrual of original issue
discount is to be used in calculating the accrual of market discount. The effect
of using a prepayment assumption could be to accelerate the reporting of such
discount income. Because the regulations referred to in this paragraph have not
been issued, it is not possible to predict what effect such regulations might
have on the tax treatment of a Mortgage Loan purchased at a discount in the
secondary market.
Because the Mortgage Loans will provide for periodic payments of stated
redemption price, such discount may be required to be included in income at a
rate that is not significantly slower than the rate at which such discount would
be included in income if it were original issue discount.
Market discount with respect to Mortgage Loans generally will be considered
to be DE MINIMIS if it is less than 0.25% of the stated redemption price of the
Mortgage Loans multiplied by the number of complete years to maturity remaining
after the date of its purchase. In interpreting a similar rule with respect to
original issue discount on obligations payable in installments, the OID
Regulations refer to the weighted average maturity of obligations, and it is
likely that the same rule will be applied with respect to market discount,
presumably taking into account the prepayment assumption used, if any. The
effect of using a prepayment assumption could be to accelerate the reporting of
such discount income. If market discount is treated as DE MINIMIS under the
foregoing rule, it appears that actual discount would be treated in a manner
similar to original issue discount of a DE MINIMIS amount. See "--If Stripped
Bond Rules Do Not Apply".
Further, under the rules described in "--Taxation of Owners of REMIC Regular
Certificates--Market Discount", any discount that is not original issue discount
and exceeds a DE MINIMIS amount may require the deferral of interest expense
deductions attributable to accrued market discount not yet includible in income,
unless an election has been made to report market discount currently as it
accrues. This rule applies without regard to the origination dates of the
Mortgage Loans.
PREMIUM. If a Certificateholder is treated as acquiring the underlying
Mortgage Loans at a premium, that is, at a price in excess of their remaining
stated redemption price, such Certificateholder may elect under Section 171 of
the Code to amortize using a constant yield method the portion of such premium
allocable to Mortgage Loans originated after September 27, 1985. Amortizable
premium is treated as an offset to interest income on the related debt
instrument, rather than as a separate interest deduction. However, premium
allocable to Mortgage Loans originated before September 28, 1985 or to Mortgage
Loans for which an amortization election is not made, should be allocated among
the payments of stated redemption price on the Mortgage Loan and be allowed as a
deduction as such payments are made (or, for
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a Certificateholder using the accrual method of accounting, when such payments
of stated redemption price are due).
It is unclear whether a prepayment assumption should be used in computing
amortization of premium allowable under Section 171 of the Code. If premium is
not subject to amortization using a prepayment assumption and a Mortgage Loan
prepays in full, the holder of a Grantor Trust Fractional Interest Certificate
acquired at a premium should recognize a loss, equal to the difference between
the portion of the prepaid principal amount of the Mortgage Loan that is
allocable to the Certificate and the portion of the adjusted basis of the
Certificate that is allocable to the Mortgage Loan. If a prepayment assumption
is used to amortize such premium, it appears that such a loss would be
unavailable. Instead, if a prepayment assumption is used, a prepayment should be
treated as a partial payment of the stated redemption price of the Grantor Trust
Fractional Interest Certificate and accounted for under a method similar to that
described for taking account of original issue discount on REMIC Regular
Certificates. See "--Taxation of Owners of REMIC Regular Certificates--Original
Issue Discount". It is unclear whether any other adjustments would be required
to reflect differences between the prepayment assumption used, if any, and the
actual rate of prepayments.
TAXATION OF OWNERS OF GRANTOR TRUST STRIP CERTIFICATES. The "stripped
coupon" rules of Section 1286 of the Code will apply to the Grantor Trust Strip
Certificates. Except as described above in "--If Stripped Bond Rules Apply", no
regulations or published rulings under Section 1286 of the Code have been issued
and some uncertainty exists as to how it will be applied to securities such as
the Grantor Trust Strip Certificates. Accordingly, holders of Grantor Trust
Strip Certificates should consult their own tax advisors concerning the method
to be used in reporting income or loss with respect to such Certificates.
The OID Regulations do not apply to "stripped coupons", although they
provide general guidance as to how the original issue discount sections of the
Code will be applied. In addition, the discussion below is subject to the
discussion under "--Possible Application of Contingent Payment Rules" below and
assumes that the holder of a Grantor Trust Strip Certificate will not own any
Grantor Trust Fractional Interest Certificates.
Under the stripped coupon rules, it appears that original issue discount
will be required to be accrued in each month on the Grantor Trust Strip
Certificates based on a constant yield method. In effect, each holder of Grantor
Trust Strip Certificates would include as interest income in each month an
amount equal to the product of such holder's adjusted basis in such Grantor
Trust Strip Certificate at the beginning of such month and the yield of such
Grantor Trust Strip Certificate to such holder. Such yield would be calculated
based on the price paid for that Grantor Trust Strip Certificate by its holder
and the payments remaining to be made thereon at the time of the purchase, plus
an allocable portion of the servicing fees and expenses to be paid with respect
to the Mortgage Loans. See "--If Stripped Bond Rules Apply" above.
As noted above, Section 1272(a)(6) of the Code requires that a prepayment
assumption be used in computing the accrual of original issue discount with
respect to certain categories of debt instruments, and that adjustments be made
in the amount and rate of accrual of such discount when prepayments do not
conform to such prepayment assumption. Regulations could be adopted applying
those provisions to the Grantor Trust Strip Certificates. It is unclear whether
those provisions would be applicable to the Grantor Trust Strip Certificates or
whether use of a prepayment assumption may be required or permitted in the
absence of such regulations. It is also uncertain, if a prepayment assumption is
used, whether the assumed prepayment rate would be determined based on
conditions at the time of the first sale of the Grantor Trust Strip Certificate
or, with respect to any subsequent holder, at the time of purchase of the
Grantor Trust Strip Certificate by that holder.
The accrual of income on the Grantor Trust Strip Certificates will be
significantly slower if a prepayment assumption is permitted to be made than if
yield is computed assuming no prepayments. In the absence of statutory or
administrative clarification, it currently is intended to base information
returns or reports to the IRS and Certificateholders on the Stripped Bond
Prepayment Assumption disclosed in
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the related Prospectus Supplement and on a constant yield computed using a
representative initial offering price for each class of Certificates. However,
neither the Depositor nor any other person will make any representation that the
Mortgage Loans will in fact prepay at a rate conforming to the Stripped Bond
Prepayment Assumption or at any other rate and Certificateholders should bear in
mind that the use of a representative initial offering price will mean that such
information returns or reports, even if otherwise accepted as accurate by the
IRS, will, in any event be accurate only as to the initial Certificateholders of
each series who bought at that price. Prospective purchasers of the Grantor
Trust Strip Certificates should consult their own tax advisors regarding the use
of the Stripped Bond Prepayment Assumption.
It is unclear under what circumstances, if any, the prepayment of a Mortgage
Loan will give rise to a loss to the holder of a Grantor Trust Strip
Certificate. If a Grantor Trust Strip Certificate is treated as a single
instrument (rather than an interest in discrete mortgage loans) and the effect
of prepayments is taken into account in computing yield with respect to such
Grantor Trust Strip Certificate, it appears that no loss may be available as a
result of any particular prepayment unless prepayments occur at a rate faster
than the Stripped Bond Prepayment Assumption. However, if a Grantor Trust Strip
Certificate is treated as an interest in discrete Mortgage Loans, or if the
Stripped Bond Prepayment Assumption is not used, then when a Mortgage Loan is
prepaid, the holder of a Grantor Trust Strip Certificate should be able to
recognize a loss equal to the portion of the adjusted issue price of the Grantor
Trust Strip Certificate that is allocable to such Mortgage Loan.
POSSIBLE APPLICATION OF CONTINGENT PAYMENT RULES. The coupon stripping
rules' general treatment of stripped coupons is to regard them as newly issued
debt instruments in the hands of each purchaser. To the extent that payments on
the Grantor Trust Strip Certificates would cease if the Mortgage Loans were
prepaid in full, the Grantor Trust Strip Certificates could be considered to be
debt instruments providing for contingent payments. Under the OID Regulations,
debt instruments providing for contingent payments are not subject to the same
rules as debt instruments providing for noncontingent payments. Final
regulations have been promulgated with respect to contingent payment debt
instruments. However, like the OID Regulations, such regulations do not
specifically address securities, such as the Grantor Trust Strip Certificates,
that are subject to the stripped bond rules of Section 1286 of the Code.
Certificateholders should consult their tax advisors concerning the possible
application of the contingent payment rules to the Grantor Trust Strip
Certificates.
SALES OF GRANTOR TRUST CERTIFICATES. Any gain or loss, equal to the
difference between the amount realized on the sale or exchange of a Grantor
Trust Certificate and its adjusted basis, recognized on such sale or exchange of
a Grantor Trust Certificate by an investor who holds such Grantor Trust
Certificate as a capital asset, will be capital gain or loss, except to the
extent of accrued and unrecognized market discount, which will be treated as
ordinary income, and (in the case of banks and other financial institutions)
except as provided under Section 582(c) of the Code. The adjusted basis of a
Grantor Trust Certificate generally will equal its cost, increased by any income
reported by the seller (including original issue discount and market discount
income) and reduced (but not below zero) by any previously reported losses, any
amortized premium and by any distributions with respect to such Grantor Trust
Certificate. The Code as of the date of this Prospectus provides a top marginal
tax rate of 39.6% for individuals and a maximum marginal rate for long-term
capital gains for individuals of 20%. No such rate differential exists for
corporations. In addition, the distinction between a capital gain or loss and
ordinary income or loss remains relevant for other purposes.
Gain or loss from the sale of a Grantor Trust Certificate may be partially
or wholly ordinary and not capital in certain circumstances. Gain attributable
to accrued and unrecognized market discount will be treated as ordinary income,
as will gain or loss recognized by banks and other financial institutions
subject to Section 582(c) of the Code. Furthermore, a portion of any gain that
might otherwise be capital gain may be treated as ordinary income to the extent
that the Grantor Trust Certificate is held as part of a "conversion transaction"
within the meaning of Section 1258 of the Code. A conversion transaction
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generally is one in which the taxpayer has taken two or more positions in the
same or similar property that reduce or eliminate market risk, if substantially
all of the taxpayer's return is attributable to the time value of the taxpayer's
net investment in such transaction. The amount of gain realized in a conversion
transaction that is recharacterized as ordinary income generally will not exceed
the amount of interest that would have accrued on the taxpayer's net investment
at 120% of the appropriate "applicable Federal rate" (which rate is computed and
published monthly by the IRS) at the time the taxpayer enters into the
conversion transaction, subject to appropriate reduction for prior inclusion of
interest and other ordinary income items from the transaction. Finally, a
taxpayer may elect to have net capital gain taxed at ordinary income rates
rather than capital gains rates in order to include such net capital gain in
total net investment income for that taxable year, for purposes of the rule that
limits the deduction of interest on indebtedness incurred to purchase or carry
property held for investment to a taxpayer's net investment income.
GRANTOR TRUST REPORTING. As may be provided in the related Prospectus
Supplement, the Trustee or Master Servicer, as applicable, will furnish to each
holder of a Grantor Trust Certificate, with each distribution, a statement
setting forth the amount of such distribution allocable to principal on the
underlying Mortgage Loans and to interest thereon at the related Pass-Through
Rate. In addition, within a reasonable time after the end of each calendar year,
the Trustee or Master Servicer, as applicable, will furnish to each
Certificateholder during such year such customary factual information as the
Depositor or the reporting party deems necessary or desirable to enable holders
of Grantor Trust Certificates to prepare their tax returns and will furnish
comparable information to the IRS as and when required by law to do so. Because
the rules for accruing discount and amortizing premium with respect to the
Grantor Trust Certificates are uncertain in various respects, there is no
assurance the IRS will agree with the Trustee's or Master Servicer's, as the
case may be, information reports of such items of income and expense. Moreover,
such information reports, even if otherwise accepted as accurate by the IRS,
will in any event be accurate only as to the initial Certificateholders that
bought their Certificates at the representative initial offering price used in
preparing such reports.
BACKUP WITHHOLDING. In general, the rules described in "--Taxation of
Owners of REMIC Residual Certificates--Backup Withholding with Respect to REMIC
Certificates" will also apply to Grantor Trust Certificates.
FOREIGN INVESTOR. In general, the discussion with respect to REMIC Regular
Certificates in "-- Taxation of Owners of REMIC Residual Certificates--Foreign
Investors in REMIC Certificates" applies to Grantor Trust Certificates except
that Grantor Trust Certificates will, unless otherwise disclosed in the related
Prospectus Supplement, be eligible for exemption from United States withholding
tax, subject to the conditions described in such discussion, only to the extent
the related Mortgage Loans were originated after July 18, 1984.
To the extent that interest on a Grantor Trust Certificate would be exempt
under Sections 871(h)(1) and 881(c) of the Code from United States withholding
tax, and the Grantor Trust Certificate is not held in connection with a
Certificateholder's trade or business in the United States, such Grantor Trust
Certificate will not be subject to United States estate taxes in the estate of a
non-resident alien individual.
STATE AND OTHER TAX CONSEQUENCES
In addition to the federal income tax consequences described in "Material
Federal Income Tax Consequences", potential investors should consider the state
and local tax consequences of the acquisition, ownership and disposition of the
Offered Certificates. State tax law may differ substantially from the
corresponding federal tax law, and the discussion above does not purport to
describe any aspect of the tax laws of any state or other jurisdiction.
Therefore, prospective investors should consult their own tax advisors with
respect to the various tax consequences of investments in the Offered
Certificates.
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ERISA CONSIDERATIONS
GENERAL
The Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
and the Code impose certain requirements on employee benefit plans, and on
certain other retirement plans and arrangements, including individual retirement
accounts and annuities, medical savings accounts, Keogh plans, collective
investment funds and separate and general accounts in which such plans, accounts
or arrangements are invested that are subject to the fiduciary responsibility
provisions of ERISA and Section 4975 of the Code (all of which are hereinafter
referred to as "Plans"), and on persons who are fiduciaries with respect to
Plans, in connection with the investment of Plan assets. Certain employee
benefit plans, such as governmental plans (as defined in ERISA Section 3(32)),
and, if no election has been made under Section 410(d) of the Code, church plans
(as defined in Section 3(33) of ERISA) are not subject to ERISA requirements.
Accordingly, assets of such plans may be invested in Offered Certificates
without regard to the ERISA considerations described below, subject to the
provisions of other applicable federal and state law. Any such plan which is
qualified and exempt from taxation under Sections 401(a) and 501(a) of the Code,
however, is subject to the prohibited transaction rules set forth in Section 503
of the Code.
ERISA generally imposes on Plan fiduciaries certain general fiduciary
requirements, including those of investment prudence and diversification and the
requirement that a Plan's investments be made in accordance with the documents
governing the Plan. In addition, ERISA and the Code prohibit a broad range of
transactions involving assets of a Plan and persons ("Parties-in-Interest") who
have certain specified relationships to the Plan, unless a statutory or
administrative exemption is available. Certain Parties-in-Interest that
participate in a prohibited transaction may be subject to an excise tax imposed
pursuant to Section 4975 of the Code, unless a statutory or administrative
exemption is available. These prohibited transactions generally are set forth in
Section 406 of ERISA and Section 4975 of the Code.
PLAN ASSET REGULATIONS. A Plan's investment in Offered Certificates may
cause the Trust Assets to be deemed Plan assets. Section 2510.3-101 of the
regulations of the United States Department of Labor (the "DOL") provides that
when a Plan acquires an equity interest in an entity, the Plan's assets include
both such equity interest and an undivided interest in each of the underlying
assets of the entity, unless certain exceptions not applicable to this
discussion apply, or unless the equity participation in the entity by "benefit
plan investors" (that is, Plans and certain employee benefit plans not subject
to ERISA) is not "significant". For this purpose, in general, equity
participation in a Trust Fund will be "significant" on any date if, immediately
after the most recent acquisition of any Certificate, 25% or more of any class
of Certificates is held by benefit plan investors.
Any person who has discretionary authority or control respecting the
management or disposition of Plan assets, and any person who provides investment
advice with respect to such assets for a fee, is a fiduciary of the investing
Plan. If the Trust Assets constitute Plan assets, then any party exercising
management or discretionary control regarding those assets, such as a Master
Servicer, a Special Servicer or any Sub-Servicer, may be deemed to be a Plan
"fiduciary" with respect to the investing Plan, and thus subject to the
fiduciary responsibility provisions and prohibited transaction provisions of
ERISA and the Code. In addition, if the Trust Assets constitute Plan assets, the
purchase of Certificates by a Plan, as well as the operation of the Trust Fund,
may constitute or involve a prohibited transaction under ERISA and the Code.
PROHIBITED TRANSACTION EXEMPTIONS
First Union Corporation ("First Union") has received from the DOL an
individual prohibited transaction exemption (the "Exemption"), which generally
exempts from the application of the prohibited transaction provisions of
Sections 406(a) and (b) and 407(a) of ERISA, and the excise taxes imposed on
such prohibited transactions pursuant to Section 4975(a) and (b) of the Code,
certain transactions, among
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others, relating to the servicing and operation of mortgage pools and the
purchase, sale and holding of mortgage pass-through certificates underwritten by
an Underwriter (as hereinafter defined), provided that certain conditions set
forth in the Exemption application are satisfied. For purposes of this Section,
"ERISA Considerations", the term "Underwriter" includes (i) First Union, (ii)
any person directly or indirectly, through one or more intermediaries,
controlling, controlled by or under common control with First Union, and (iii)
any member of the underwriting syndicate or selling group of which First Union
or a person described in (ii) is a manager or co-manager with respect to a class
of Certificates. See "Method of Distribution".
The Exemption sets forth six general conditions which must be satisfied for
a transaction involving the purchase, sale and holding of Offered Certificates
to be eligible for exemptive relief under the Exemption:
FIRST, the acquisition of Offered Certificates by a Plan must be on terms
that are at least as favorable to the Plan as they would be in an arm's-length
transaction with an unrelated party.
SECOND, the Offered Certificates must evidence rights and interests which
are not subordinated to the rights and interests evidenced by other Certificates
of the same trust.
THIRD, the Offered Certificates at the time of acquisition by the Plan must
be rated in one of the three highest generic rating categories by Standard &
Poor Structured Rating Group ("Standard & Poor's"), Moody's Investors Service,
Inc. ("Moody's"), Duff & Phelps Credit Rating Co. ("Duff & Phelps") or Fitch
Investors Service, L.P. ("Fitch").
FOURTH, the Trustee cannot be an affiliate of any other member of the
"Restricted Group", which consists of any Underwriter, the Depositor, the
Trustee, the Master Servicer, the Special Servicer, any Sub-Servicer, the
provider of any Credit Support and any obligor with respect to Mortgage Assets
(including mortgage loans underlying a CMBS not issued by FNMA, FHLMC or GNMA)
constituting more than 5% of the aggregate unamortized principal balance of the
Mortgage Assets in the related Trust Fund as of the date of initial issuance of
the Certificates.
FIFTH, the sum of all payments made to and retained by the Underwriter(s)
must represent not more than reasonable compensation for underwriting or placing
the Certificates; the sum of all payments made to and retained by the Depositor
pursuant to the assignment of the Mortgage Assets to the related Trust Fund must
represent not more than the fair market value of such obligations; and the sum
of all payments made to and retained by the Master Servicer and any Sub-Servicer
must represent not more than reasonable compensation for such person's services
under the related Pooling Agreement and reimbursement of such person's
reasonable expenses in connection therewith.
SIXTH, the investing Plan must be an accredited investor as defined in Rule
501(a)(1) of Regulation D of the Commission under the Securities Act.
SEVENTH, in the event the obligations used to fund the Trust Fund have not
all been transferred to the Trust Fund on the closing date, additional
obligations meeting certain requirements as specified in the Exemption shall be
transferred to the Trust Fund in exchange for the amounts credited to the
Pre-Funding Account during the period commencing on the closing date and ending
no later than the earliest to occur of: (i) the date the amount on deposit in
the Pre-Funding Account (as defined in the Exemption) is less than the minimum
dollar amount specified in the Pooling Agreement; (ii) the date on which an
event of default occurs under the Pooling Agreement; or (iii) the date which is
the later of three months or 90 days after the closing date. Certain conditions
of the Exemption relating to pre-funding accounts must also be met, to be
described in the Prospectus Supplement.
The Exemption also requires that the Trust Fund meet the following
requirements: (i) the Trust Fund must consist solely of assets of the type that
have been included in other investment pools; (ii) certificates in such other
investment pools must have been rated in one of the three highest categories of
Standard & Poor's, Moody's, Duff & Phelps or Fitch for at least one year prior
to the Plan's acquisition of Certificates;
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and (iii) certificates in such other investment pools must have been purchased
by investors other than Plans for at least one year prior to any Plan's
acquisition of Certificates.
It is not clear whether certain Offered Certificates would constitute
"certificates" for purposes of the Exemption, including but not limited to, (i)
Certificates evidencing an interest in Mortgage Loans secured by liens on real
estate projects under construction, or (ii) Certificates evidencing an interest
in a Trust Fund including Cash Flow Agreements. Also, as noted, subordinated
Classes of Certificates are not covered by the Exemption.
If the general conditions set forth in the Exemption are satisfied, the
Exemption may provide an exemption from the restrictions imposed by Sections
406(a) and 407(a) of ERISA (as well as the excise taxes imposed by Sections
4975(a) and (b) of the Code by reason of Sections 4975(c)(1) (A) through (D) of
the Code) in connection with (i) the direct or indirect sale, exchange or
transfer of Offered Certificates acquired by a Plan upon issuance from the
Depositor or Underwriter when the Depositor, Underwriter, Master Servicer,
Special Servicer, Sub-Servicer, Trustee, provider of Credit Support, or obligor
with respect to Mortgage Assets is a "Party in Interest" under ERISA with
respect to the investing Plan, (ii) the direct or indirect acquisition or
disposition in the secondary market of Offered Certificates by a Plan and (iii)
the holding of Offered Certificates by a Plan. However, no exemption is provided
from the restrictions of Sections 406(a)(1)(E), 406(a)(2) and 407 of ERISA for
the acquisition or holding of a Certificate on behalf of an "Excluded Plan" by
any person who has discretionary authority or renders investment advice with
respect to the assets of such Excluded Plan. For this purpose, an Excluded Plan
is a Plan sponsored by any member of the Restricted Group.
If certain specific conditions set forth in the Exemption are also
satisfied, the Exemption may provide an exemption from the restrictions imposed
by Sections 406(b)(1) and (b)(2) of ERISA and the taxes imposed by Sections
4975(a) and (b) of the Code by reason of Section 4975(c)(1)(E) of the Code in
connection with (i) the direct or indirect sale, exchange or transfer of Offered
Certificates in the initial issuance of Offered Certificates between the
Depositor or an Underwriter and a Plan (other than an Excluded Plan) when the
person who has discretionary authority or renders investment advice with respect
to the investment of the Plan's assets in such Certificates is (a) an obligor
with respect to 5% or less of the fair market value of the Mortgage Assets
(including mortgage loans underlying a CMBS not issued by FNMA, FHLMC or GNMA)
in the related Trust Fund or (b) an affiliate of such a person, (ii) the direct
or indirect acquisition or disposition in the secondary market of Offered
Certificates by such Plan and (iii) the holding of Offered Certificates by such
Plan.
Further, if certain specific conditions set forth in the Exemption are
satisfied, the Exemption may provide an exemption from the restrictions imposed
by Sections 406(a), 406(b) and 407(a) of ERISA, and the taxes imposed by
Sections 4975(a) and (b) of the Code by reason of Section 4975(c) of the Code,
for transactions in connection with the servicing, management and operation of
the Trust Assets. The Depositor expects that the specific conditions set forth
in the Exemption that are required for this purpose will be satisfied with
respect to the Certificates so that the Exemption would provide an exemption
from the restrictions imposed by Sections 406(a) and (b) of ERISA (as well as
the excise taxes imposed by Sections 4975(a) and (b) of the Code by reason of
Section 4975(c) of the Code) for transactions in connection with the servicing,
management and operation of the pools of Mortgage Assets, provided that the
general conditions set forth in the Exemption are satisfied.
The Exemption also provides an exemption from the restrictions imposed by
Sections 406(a) and 407(a) of ERISA, and the taxes imposed by Section 4975(a)
and (b) of the Code by reason of Sections 4975(c)(1) (A) through (D) of the Code
if such restrictions are deemed to otherwise apply merely because a person is
deemed to be a Party in Interest with respect to an investing Plan by virtue of
providing services to the Plan (or by virtue of having certain specified
relationships to such a person) solely as a result of the Plan's ownership of
Offered Certificates.
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Before purchasing an Offered Certificate, a fiduciary of a Plan should
itself confirm (i) that the Offered Certificates constitute "certificates" for
purposes of the Exemption and (ii) that the specific and general conditions and
the other requirements set forth in the Exemption would be satisfied. In
addition to making its own determination as to the availability of the exemptive
relief that may be provided in the Exemption the Plan fiduciary should consider
its general fiduciary obligations under ERISA in determining whether to purchase
any Offered Certificates on behalf of a Plan.
The DOL recently issued a Prohibited Transaction Class Exemption 95-60 (the
"Class Exemption"), which exempts from the application of the prohibited
transactions provisions of Sections 406(a), 406(b) and 407(a) of ERISA and
Section 4975 of the Code transactions in connection with the servicing,
management and operation of a trust in which an insurance company general
account has an interest as a result of its acquisition of certificates issued by
the trust, provided that certain conditions are satisfied. Insurance company
general accounts are allowed to purchase, in reliance on the Class Exemption,
classes of Certificates that (i) are subordinated to other classes of
Certificates and/or (ii) have not received a rating at the time of the
acquisition in one of the three highest rating categories from Standard &
Poor's, Moody's, Duff & Phelps or Fitch. In addition to the foregoing Class
Exemption, certain insurance company general accounts, which support policies
issued by any insurer on or before December 31, 1998 to or for the benefit of
employee benefit plans, are allowed to purchase Certificates in reliance upon
regulations to be promulgated by the DOL pursuant to Section 1460 of the Small
Business Job Protection Act of 1996. If such policies satisfy the Section 1460
regulations, then the insurer will be deemed in compliance with ERISA's
fiduciary requirements and prohibited transaction rules with respect to those
assets of the insurer's general account which support such policies.
Any fiduciary of a Plan that proposes to cause the Plan to purchase Offered
Certificates should consult with its counsel with respect to the potential
applicability of ERISA and the Code to such investment and the availability of
(and scope of relief provided by) the Exemption or any other prohibited
transaction exemption in connection therewith. The Prospectus Supplement with
respect to a series of Certificates may contain additional information regarding
the application of the Exemption or any other exemption, with respect to the
Certificates offered thereby. In addition, any Plan fiduciary that proposes to
cause a Plan to purchase Stripped Interest Certificates should consider the
federal income tax consequences of such investment.
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LEGAL INVESTMENT
The Offered Certificates of any series will constitute "mortgage related
securities" for purposes of the Secondary Mortgage Market Enhancement Act of
1984 ("SMMEA") only if so specified in the related Prospectus Supplement.
Accordingly, investors whose investment authority is subject to legal
restrictions should consult their own legal advisors to determine whether and to
what extent the Offered Certificates constitute legal investments for them.
Generally, only classes of Offered Certificates that (i) are rated in one of
the two highest rating categories by one or more Rating Agencies and (ii) are
part of a series evidencing interests in a Trust Fund consisting of loans
directly secured by a first lien on a single parcel of real estate upon which is
located a dwelling or mixed residential and commercial structure, such as
certain multifamily loans, and originated by types of Originators specified in
SMMEA, will be "mortgage related securities" for purposes of SMMEA. "Mortgage
related securities" are legal investments to the same extent that, under
applicable law, obligations issued by or guaranteed as to principal and interest
by the United States or any agency or instrumentality thereof constitute, legal
investments for persons, trusts, corporations, partnerships, associations,
business trusts and business entities (including depository institutions,
insurance companies and pension funds created pursuant to or existing under the
laws of the United States or of any state, the authorized investments of which
are subject to state regulation). Under SMMEA, if a state enacted legislation
prior to October 3, 1991 that specifically limits the legal investment authority
of any such entities with respect to "mortgage related securities", Offered
Certificates would constitute legal investments for entities subject to such
legislation only to the extent provided in such legislation.
Pursuant to final implementing regulations under the Riegle Community
Development and Regulatory Improvement Act of 1994 (the "Riegle Act") and the
terms of the Riegle Act, a modification of the definition of "mortgage related
securities" became effective December 31, 1996 to include among the types of
loans to which such securities may relate loans directly secured by a first lien
on "one or more parcels of real estate upon which is located one or more
commercial structures". The regulations also imposed on national banks
purchasing "mortgage related securities" the requirement that the securities be
fully secured by interests in a pool of loans to numerous obligors. In addition,
the related legislative history of the Riegle Act indicates that this expanded
definition includes multifamily loans secured by more than one parcel of real
estate upon which is located more than one structure. Until September 23, 2001
any state may enact legislation limiting the extent to which "commercial
mortgage related securities" would constitute legal investments under that
state's laws.
SMMEA also amended the legal investment authority of federally chartered
depository institutions as follows: federal savings and loan associations and
federal savings banks may invest in, sell or otherwise deal with "mortgage
related securities" without limitation as to the percentage of their assets
represented thereby, federal credit unions may invest in such securities, and
national banks may purchase such securities for their own account without regard
to the limitations generally applicable to investment securities set forth in 12
U.S.C. 24 (Seventh), subject in each case to such regulations as the applicable
federal regulatory authority may prescribe. In this connection, effective
December 31, 1996, the Office of the Comptroller of the Currency (the "OCC")
amended 12 C.F.R. Part 1 to authorize national banks to purchase and sell for
their own account, without limitation as to a percentage of the bank's capital
and surplus (but subject to compliance with certain general standards concerning
"safety and soundness" and retention of credit information in 12 C.F.R. Section
1.5), certain "Type IV securities", defined in 12 C.F.R. Section 1.2(1) to
include certain "commercial mortgage-related securities" and "residential
mortgage-related securities". As so defined, "commercial mortgage-related
security" and "residential mortgage-related security" mean, in relevant part,
"mortgage related security" within the meaning of SMMEA, provided that, in the
case of a "commercial mortgage-related security," it "represents ownership of a
promissory note or certificate of interest or participation that is directly
secured by a first lien on one or more parcels of real estate upon which one or
more commercial structures are located and that is fully secured by interests in
a pool of loans to numerous obligors." In the absence of any rule or
administrative
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interpretation by the OCC defining the term "numerous obligors," no
representation is made as to whether any class of Offered Certificates will
qualify as "commercial mortgage-related securities", and thus as "Type IV
securities", for investment by national banks. Federal credit unions should
review NCUA Letter to Credit Unions No. 96, as modified by Letter to Credit
Unions No. 108, which includes guidelines to assist federal credit unions in
making investment decisions for mortgage related securities. The NCUA has
adopted rules, codified as 12 C.F.R. Section 703.5(f)-(k), which prohibit
federal credit unions from investing in certain mortgage related securities
(including securities such as certain classes of Offered Certificates), except
under limited circumstances.
All depository institutions considering an investment in the Offered
Certificates of any series should review the Federal Financial Institutions
Examination Council's Supervisory Policy Statement on the Selection of
Securities Dealers and Unsuitable Investment Practices (to the extent adopted by
their respective regulatory authorities), setting forth, in relevant part,
certain investment practices deemed to be unsuitable for an institution's
investment portfolio, as well as guidelines for investing in certain types of
mortgage related securities.
The foregoing does not take into consideration the applicability of
statutes, rules, regulations, orders, guidelines or agreements generally
governing investments made by a particular investor, including, but not limited
to, "prudent investor" provisions, percentage-of-assets limits and provisions
which may restrict or prohibit investment in securities which are not "interest
bearing" or "income paying".
There may be other restrictions on the ability of certain investors,
including depository institutions, either to purchase Offered Certificates or to
purchase Offered Certificates representing more than a specified percentage of
the investor's assets. Investors should consult their own legal advisors in
determining whether and to what extent the Offered Certificates constitute legal
investments for such investors.
METHOD OF DISTRIBUTION
The Offered Certificates offered hereby and by the Prospectus Supplements
hereto will be offered in series. The distribution of the Offered Certificates
may be effected from time to time in one or more transactions, including
negotiated transactions, at a fixed public offering price or at varying prices
to be determined at the time of sale or at the time of commitment therefor. The
Prospectus Supplement for the Offered Certificates of each series will, as to
each class of such Certificates, set forth the method of the offering, either
the initial public offering price or the method by which the price at which the
Certificates of such class will be sold to the public can be determined, the
amount of any underwriting discounts, concessions and commissions to
underwriters, any discounts or commissions to be allowed to dealers and the
proceeds of the offering to the Depositor.
If so specified in the related Prospectus Supplement, the Offered
Certificates of a series will be distributed in a firm commitment underwriting,
subject to the terms and conditions of the underwriting agreement, by First
Union Capital Markets, a division of Wheat First Securities, Inc., acting as
underwriter with other underwriters, if any, named therein. Alternatively, the
Prospectus Supplement may specify that Offered Certificates will be distributed
by First Union Capital Markets acting as agent. If First Union Capital Markets
acts as agent in the sale of Offered Certificates, First Union Capital Markets
will receive a selling commission with respect to such Offered Certificates,
depending on market conditions, expressed as a percentage of the aggregate
Certificate Balance or Notional Amount of such Offered Certificates as of the
date of issuance. The exact percentage for each series of Certificates will be
disclosed in the related Prospectus Supplement. To the extent that First Union
Capital Markets elects to purchase Offered Certificates as principal, First
Union Capital Markets may realize losses or profits based upon the difference
between its purchase price and the sales price. The Prospectus Supplement with
respect to any Series offered other than through underwriters will contain
information regarding the nature of such offering and any agreements to be
entered into between the Depositor and purchasers of Offered Certificates of
such series.
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This Prospectus and related Prospectus Supplements may be used by the
Depositor, First Union Capital Markets Corp., a division of Wheat First
Securities, Inc., an affiliate of the Depositor, and any other affiliate of the
Depositor when required under the federal securities laws in connection with
offers and sales of Offered Certificates in furtherance of market-making
activities in Offered Certificates. First Union Capital Markets or any such
other affiliate may act as principal or agent in such transactions. Such sales
will be made at prices related to prevailing market prices at the time of sale
or otherwise.
The Depositor will agree to indemnify First Union Capital Markets, a
division of Wheat First Securities, Inc., and any underwriters and their
respective controlling persons against certain civil liabilities, including
liabilities under the Securities Act, or will contribute to payments that any
such person may be required to make in respect thereof.
In the ordinary course of business, First Union Capital Markets, a division
of Wheat First Securities, Inc., and the Depositor may engage in various
securities and financing transactions, including repurchase agreements to
provide interim financing of the Depositor's mortgage loans pending the sale of
such mortgage loans or interests therein, including the Certificates.
The Depositor anticipates that the Offered Certificates will be sold
primarily to institutional investors. Purchasers of Offered Certificates,
including dealers, may, depending on the facts and circumstances of such
purchases, be deemed to be "underwriters" within the meaning of the Securities
Act in connection with reoffers and sales by them of Offered Certificates.
Certificateholders should consult with their legal advisors in this regard prior
to any such reoffer or sale.
As to each series of Certificates, only those classes rated in an investment
grade rating category by any Rating Agency will be offered hereby. Any class of
Certificates not offered hereby may be initially retained by the Depositor, and
may be sold by the Depositor at any time to one or more institutional investors.
Underwriters or agents and their associates may be customers of (including
borrowers from), engage in transactions with, and/or perform services for the
Depositor, its affiliates, and the Trustee in the ordinary course of business.
LEGAL MATTERS
Unless otherwise specified in the related Prospectus Supplement, certain
legal matters in connection with the Certificates of each series, including
certain federal income tax consequences, will be passed upon for the Depositor
by Willkie Farr & Gallagher, New York, New York and for the Underwriters by
Sidley & Austin, New York, New York.
FINANCIAL INFORMATION
A new Trust Fund will be formed with respect to each series of Certificates,
and no Trust Fund will engage in any business activities or have any assets or
obligations prior to the issuance of the related series of Certificates.
Accordingly, no financial statements with respect to any Trust Fund will be
included in this Prospectus or in the related Prospectus Supplement.
RATING
It is a condition to the issuance of any class of Offered Certificates that
they shall have been rated not lower than investment grade, that is, in one of
the four highest rating categories, by at least one Rating Agency.
Ratings on commercial mortgage pass-through certificates address the
likelihood of receipt by the holders thereof of all collections on the
underlying mortgage assets to which such holders are entitled. These ratings
address the structural, legal and issuer-related aspects associated with such
certificates, the nature of the underlying mortgage assets and the credit
quality of the guarantor, if any. Ratings on
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commercial mortgage pass-through certificates do not represent any assessment of
the likelihood of principal prepayments by borrowers or of the degree by which
such prepayments might differ from those originally anticipated. As a result,
Certificateholders might suffer a lower than anticipated yield, and, in
addition, holders of Stripped Interest Certificates in extreme cases might fail
to recoup their initial investments.
There can be no assurance that any rating agency not requested to rate the
Offered Certificates will not nonetheless issue a rating to any or all Classes
thereof and, if so, what such rating or ratings would be. A rating assigned to
any Class of Offered Certificates by a rating agency that has not been requested
by the Depositor to do so may be lower than the rating assigned thereto by one
or more of the Rating Agencies.
A security rating is not a recommendation to buy, sell or hold securities
and may be subject to revision or withdrawal at any time by the assigning rating
organization. Each security rating should be evaluated independently of any
other security rating.
119
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INDEX OF PRINCIPAL DEFINITIONS
<TABLE>
<CAPTION>
PAGE
----------------------
<S> <C>
Accrual Certificates...................................................................... 14, 47
Accrued Certificate Interest.............................................................. 47
Acute Care Facilities..................................................................... 26
ADA....................................................................................... 83
ARM Loans................................................................................. 37
Assisted Living Facilites................................................................. 26
Available Distribution Amount............................................................. 46
Bond-type................................................................................. 34
Book-Entry Certificates................................................................... 16, 46
Capitalized Interest Account.............................................................. 13, 39
Cash Flow Agreement....................................................................... 2, 12, 39
CERCLA.................................................................................... 30, 80
Certificate............................................................................... Front Cover, 9
Certificate Account....................................................................... 11, 38
Certificate Balance....................................................................... 3, 14
Certificate Owner......................................................................... 16, 53
Certificateholders........................................................................ 2, 85
Class Exemption........................................................................... 113
Closing Date.............................................................................. 87
CMBS...................................................................................... 2, 11, 33
CMBS Agreement............................................................................ 37
CMBS Issuer............................................................................... 37
CMBS Servicer............................................................................. 37
CMBS Trustee.............................................................................. 37
Code...................................................................................... 16, 85
Commercial Properties..................................................................... 9, 33
Commission................................................................................ 3
Committee Report.......................................................................... 87
Companion Class........................................................................... 15, 48
Contributions Tax......................................................................... 98
Controlled Amortization Class............................................................. 15, 48
Cooperative Loans......................................................................... 73
Cooperatives.............................................................................. 33, 42
CPR....................................................................................... 42
Credit-Type............................................................................... 34
Credit Support............................................................................ 2, 12, 38
Cut-off Date.............................................................................. 15
Debt Service Coverage Ratio............................................................... 35
Definitive Certificate.................................................................... 16
Definitive Certificates................................................................... 46
Depositor................................................................................. 33
Determination Date........................................................................ 47
Direct Participants....................................................................... 53
Distribution Date......................................................................... 14
Distribution Date Statement............................................................... 50
DOL....................................................................................... 112
DTC....................................................................................... 4
Due Period................................................................................ 49
Duff & Phelps............................................................................. 113
</TABLE>
120
<PAGE>
<TABLE>
<CAPTION>
PAGE
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<S> <C>
Equity Participation...................................................................... 37
ERISA..................................................................................... 16, 18, 112
Event of Default.......................................................................... 65
Excess Funds.............................................................................. 45
Exchange Act.............................................................................. 4
Exemption................................................................................. 112
FAMC...................................................................................... 11
FASIT..................................................................................... 17, 85
FHLMC..................................................................................... 11
First Union............................................................................... 112
Fitch..................................................................................... 113
FNMA...................................................................................... 11
Garn Act.................................................................................. 82
GNMA...................................................................................... 11
Grantor Trust Certificates................................................................ 17, 85
Grantor Trust Fractional Interest Certificates............................................ 17, 102
Grantor Trust Fund........................................................................ 85
Grantor Trust Strip Certificate........................................................... 102
Health-Care Related Facilities............................................................ 26
Health Care-Related Mortgaged Property.................................................... 26
Holder.................................................................................... 85
Indirect Participants..................................................................... 53
Insurance Proceeds........................................................................ 57
IRS....................................................................................... 88
Issue Premium............................................................................. 93
L/C Bank.................................................................................. 70
Lease..................................................................................... 4, 10
Lease Assignment.......................................................................... 10
Lender Liability Act...................................................................... 81
Lessee.................................................................................... 4, 10
Liquidation Proceeds...................................................................... 57
Loan-to-Value Ratio....................................................................... 36
Lock-out Period........................................................................... 36
Mark-to-Market Regulations................................................................ 96
Master Servicer........................................................................... 3, 9
Moody's................................................................................... 113
Mortgage Asset Seller..................................................................... 11, 33
Mortgage Assets........................................................................... 2, 33
Mortgage Loans............................................................................ 2, 9, 33
Mortgage Notes............................................................................ 33
Mortgage Rate............................................................................. 10, 36
Mortgaged Properties...................................................................... 33
Mortgages................................................................................. 33
Multifamily Properties.................................................................... 9, 33
Net Operating Income...................................................................... 35
Nonrecoverable Advance.................................................................... 49
Notional Amount........................................................................... 14, 47
Offered Certificates...................................................................... Front Cover
OID Regulations........................................................................... 85
Originator................................................................................ 33
PAC....................................................................................... 43
Participants.............................................................................. 32
</TABLE>
121
<PAGE>
<TABLE>
<CAPTION>
PAGE
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<S> <C>
Parties in Interest....................................................................... 112
Pass-Through Rate......................................................................... 3, 14
Permitted Investments..................................................................... 57
Plans..................................................................................... 112
Pooling Agreement......................................................................... 13, 55
Pre-Funding Account....................................................................... 2, 12, 39
Pre-Funding Period........................................................................ 13, 39
Prepayment Assumption..................................................................... 87
Prepayment Interest Shortfall............................................................. 40
Prepayment Period......................................................................... 51
Prepayment Premium........................................................................ 36
Prohibited Transactions Tax............................................................... 98
Prospectus Supplement..................................................................... Front Cover
Rating Agency............................................................................. 18
Record Date............................................................................... 47
Related Proceeds.......................................................................... 49
Relief Act................................................................................ 83
REMIC..................................................................................... 2, 85
REMIC Certificates........................................................................ 85
REMIC Provisions.......................................................................... 85
REMIC Regular Certificates................................................................ 16, 86
REMIC Regulations......................................................................... 85
REMIC Residual Certificates............................................................... 16, 86
REO Property.............................................................................. 10, 51
RICO...................................................................................... 84
Securities Act............................................................................ 3
Senior Certificates....................................................................... 13, 46
Senior Housing............................................................................ 26
Servicing Standard........................................................................ 60
Skilled Nursing Facilities................................................................ 26
SMMEA..................................................................................... 116
SPA....................................................................................... 42
Special Servicer.......................................................................... 3, 9, 60
Standard & Poor's......................................................................... 113
Stripped Bond Prepayment Assumption....................................................... 105
Stripped Interest Certificates............................................................ 13, 46
Stripped Principal Certificates........................................................... 13, 46
Subordinate Certificates.................................................................. 13, 46
Sub-Servicer.............................................................................. 60
Sub-Servicing Agreement................................................................... 60
TAC....................................................................................... 43
Tiered REMICs............................................................................. 87
Title V................................................................................... 83
Trust Assets.............................................................................. 3
Trust Fund................................................................................ 2
Trustee................................................................................... 3, 9
UCC....................................................................................... 72
Underwriter............................................................................... 113
Value..................................................................................... 36
Warranting Party.......................................................................... 56
</TABLE>
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[DISKETTE CONTAINING SUBSTANTIALLY ALL INFORMATION CONTAINED IN ANNEX A-1, ANNEX
A-2 AND ANNEX A-3]
"FULBBA" is a Microsoft Excel*, Version 5.0 spreadsheet that provides in
electronic format certain loan- level information shown in Annexes A-1, A-2 and
A-3, as well as certain Mortgage Loan and Mortgaged Property information shown
in the Prospectus Supplement. This spreadsheet can be put on a user-specified
hard drive or network drive. Open this file as you would normally open any
spreadsheet in Microsoft Excel. After the file is opened, a securities law
legend will be displayed. READ THE LEGEND CAREFULLY. To view the data, see the
worksheets labeled "Annex A-1," "Annex A-2," "Annex A-3" or "Step" respectively.
* Microsoft Excel is a registered trademark of Microsoft Corporation.
<PAGE>
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NO DEALER, SALESMAN OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATION NOT CONTAINED IN THIS PROSPECTUS
SUPPLEMENT AND THE ACCOMPANYING PROSPECTUS AND, IF GIVEN OR MADE, SUCH
INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED
BY THE DEPOSITOR OR THE UNDERWRITER. THIS PROSPECTUS SUPPLEMENT AND THE
ACCOMPANYING PROSPECTUS DO NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF
AN OFFER TO BUY, THE SECURITIES OFFERED HEREBY TO ANYONE IN ANY JURISDICTION IN
WHICH THE PERSON MAKING SUCH OFFER OR SOLICITATION IS NOT QUALIFIED TO DO SO OR
TO ANYONE TO WHOM IT IS UNLAWFUL TO MAKE ANY SUCH OFFER OR SOLICITATION. NEITHER
DELIVERY OF THIS PROSPECTUS SUPPLEMENT AND THE ACCOMPANYING PROSPECTUS NOR ANY
SALE MADE HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT
THE INFORMATION HEREIN OR THEREIN IS CORRECT AS OF ANY TIME SINCE THE DATE OF
THIS PROSPECTUS SUPPLEMENT OR THE ACCOMPANYING PROSPECTUS.
--------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PROSPECTUS SUPPLEMENT
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<S> <C>
PAGE
---------
SUMMARY OF PROSPECTUS SUPPLEMENT........ S-5
RISK FACTORS............................ S-28
DESCRIPTION OF THE MORTGAGE POOL........ S-35
SERVICING OF THE MORTGAGE LOANS......... S-85
DESCRIPTION OF THE CERTIFICATES......... S-94
YIELD AND MATURITY CONSIDERATIONS....... S-115
USE OF PROCEEDS......................... S-123
CERTAIN FEDERAL INCOME TAX
CONSEQUENCES.......................... S-123
ERISA CONSIDERATIONS.................... S-124
LEGAL INVESTMENT........................ S-126
METHOD OF DISTRIBUTION.................. S-127
LEGAL MATTERS........................... S-128
RATINGS................................. S-128
INDEX OF PRINCIPAL DEFINITIONS.......... S-129
ANNEX A-1............................... A-1
ANNEX A-2............................... A-2
ANNEX A-3............................... A-3
ANNEX B................................. B-1
ANNEX C................................. C-1
ANNEX D................................. D-1
ANNEX E................................. E-1
ANNEX F................................. F-1
ANNEX G................................. G-1
ANNEX H................................. H-1
ANNEX I................................. I-1
ANNEX J................................. J-1
ANNEX K................................. K-1
<CAPTION>
PROSPECTUS
- ---------------------------------------------------
<S> <C>
PROSPECTUS SUPPLEMENT................... 3
AVAILABLE INFORMATION................... 3
INCORPORATION OF CERTAIN INFORMATION BY
REFERENCE............................. 4
SUMMARY OF PROSPECTUS................... 9
RISK FACTORS............................ 19
DESCRIPTION OF THE TRUST FUNDS.......... 34
YIELD AND MATURITY CONSIDERATIONS....... 41
THE DEPOSITOR........................... 46
USE OF PROCEEDS......................... 46
DESCRIPTION OF THE CERTIFICATES......... 47
DESCRIPTION OF THE POOLING AGREEMENTS... 56
DESCRIPTION OF CREDIT SUPPORT........... 70
CERTAIN LEGAL ASPECTS OF MORTGAGE LOANS
AND LEASES............................ 72
MATERIAL FEDERAL INCOME TAX
CONSEQUENCES.......................... 86
STATE AND OTHER TAX CONSEQUENCES........ 112
ERISA CONSIDERATIONS.................... 113
LEGAL INVESTMENT........................ 117
METHOD OF DISTRIBUTION.................. 118
LEGAL MATTERS........................... 119
FINANCIAL INFORMATION................... 119
RATING.................................. 119
INDEX OF PRINCIPAL DEFINITIONS.......... 121
</TABLE>
FIRST UNION COMMERCIAL
MORTGAGE SECURITIES, INC.
(DEPOSITOR)
$
(APPROXIMATE)
FIRST UNION-LEHMAN BROTHERS-BANK OF AMERICA
COMMERCIAL MORTGAGE TRUST
COMMERCIAL MORTGAGE
PASS-THROUGH CERTIFICATES
SERIES 1998-C2
---------------------
PROSPECTUS SUPPLEMENT
---------------------
LEHMAN BROTHERS
[LOGO]
CAPITAL MARKETS
BANCAMERICA ROBERTSON STEPHENS
MAY , 1998
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