10-K
ANNUAL REPORT
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
FORM 10-K
FOR ANNUAL AND TRANSITION REPORTS
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One)
___X___ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the Fiscal Year Ended: December 31, 1998
OR
_______ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
Commission file number 333-05271
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Chase Commercial Mortgage Securities Corp. (Issuer in respect of
Commercial Mortgage Pass-Through Certificates, Series 1996-1,
Series 1996-2, Series 1997-1, Series 1997-2, Series 1998-1 and Series 1998-2)
(formerly known as "Chemical Commercial Mortgage Securities Corp.")
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(Exact name of registrant as specified in its charter)
NY 13-3728743
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(State or Other Jurisdiction of (IRS Employer
Incorporation or Organization) Identification Number)
270 Park Avenue 10017
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 270-6000
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such reports), and (2) has
been subject to such filing requirements for the past 90 days:
YES __X__ No:
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-K or any amendment to this Form 10-K. NOT APPLICABLE
State the aggregate market value of the voting stock held by non-
affiliates of the Registrant. The aggregate market value shall be computed
by reference to the price at which the stock was sold, or the average bid and
asked priced of such stock, as of a specified date within 60 days prior to the
date of filing. (See definition of affiliate in Rule 405). NOT APPLICABLE.
Introductory Note
This Annual Report on Form 10-K is filed in accordance with a letter to
the Office of Chief Counsel, Division of Corporation Finance of the Securities
and Exchange Commission (the "Division"), dated September 17, 1996,
requesting advise from the Division that it will raise no objection if Chase
Commercial Mortgage Securities Corp. (the "Registrant') files reports
pursuant to Section 15(d), 13 and 16 of the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), in the manner described therein, submitted
to the Office of Chief Counsel on behalf of the Registrant. Accordingly,
responses to certain Items have been omitted from or modified in this
Annual Report on Form 10-K.
Each series (a "Series") of the Registrant's Commercial Mortgage Pass-
Through Certificates (the "Certificates"), represent the beneficial
ownership interest in a trust fund (a "Trust Fund") consisting, among other
things, of a segregated pool of commercial mortgage loans (the "Mortgage
Loans'). The registrant has acted as depositor for the following series of
commercial mortgage pass-through certificates:
Series 1996-1
Series 1996-2
Series 1997-1
Series 1997-2
Series 1998-1
Series 1998-2
Part I
Item 1. Business
Omitted.
Item 2 Properties
Information regarding the mortgaged properties will be included in
the Accountant's Statements and Annual Statements of Compliance
filed under Item 14 hereof, as described in Item 14 hereof.
Item 3. Legal Proceedings
The registrant knows of no material pending legal proceedings as it
relates to each Series involving the Registrant, the Certificates,
the Servicer, Special Servicer, the Trust Fund or any material pending
legal proceeding, other than routine litigation incidental to the
applicable trustee, servicer, special servicer, or the Registrant's
duties under the related pooling and servicing agreement.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted to a vote of security holders for any Series
during the fiscal year covered by this report.
<PAGE>
Part II
Item 5. Market for Registrant's Common Equity and Related
Stockholders Matters
(a) (1) To the knowledge of the Registrant, there is no
established public market for the Certificates of
any Series.
(2) To the knowledge of the Registrant, there are no
reported high and low bid quotations for any of the
Certificates.
(b) The records of the Registrant indicate that as of
December 31, 1998, the following Series had the following
number of holders of record:
Series 1996-1: 4
Series 1996-2: 7
Series 1997-1: 7
Series 1997-2: 7
Series 1998-1: 7
Series 1998-2: 7
Item 6. Selected Financial Data
Omitted.
Item 7. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Year 2000 Compliance
Year 2000 efforts for The Chase Manhattan Bank ("Chase") are being
coordinated, managed and monitored as part of the Year 2000 efforts of The
Chase Manhattan Corporation (the "Corporation") by the Corporation's Year
2000 Enterprise Program Office (the "Program Office"). The Program Office
reports directly to the Executive Committee of the Corporation and is
responsible for the Corporation's Year 2000 remediation efforts, on a global
basis, both technical and business-related. In addition, a Year 2000 Core
Team (the "Core Team"), consisting of senior managers from internal audit,
technology risk and control, financial management and control, the
technology infrastructure division, legal and the Program Office, provides
independent oversight of the process. The Core Team, which also reports
directly to the Corporation's Executive Committee, is charged with
identifying key risks and ensuring necessary management attention for
timely resolution of project issues.
The Corporation's Year 2000 Program continues to evolve. On
January 1, 1999, the Corporation established a Year 2000 Business Risk
Council, comprised of approximately 20 senior business leaders -- line
managers, risk managers, and representatives of key staff functions -- to
identify potential Year 2000 business risks, coordinate planning and readiness
efforts, refine contingency plans for Year 2000, and establish a Year 2000
command center structure and rapid response teams.
The Corporation's Year 2000 Program is tracked against well-defined
milestones. The Corporation completed its inventory and assessment phases
on schedule on September 30, 1997, identifying affected hardware and software,
prioritizing tasks and establishing implementation plans. Chase expects
substantially all of the applications related to the commercial mortgage
loan operations of Chase to have been remediated by June 30, 1999.
In addition, each of Chase's third party service providers has been
contacted to determine its Year 2000 readiness and establish a testing
schedule. In many cases testing has begun and testing with all such third
party service providers is scheduled throughout 1999. The Corporation
also expects to continue to participate in tests organized by major
industry and governmental infrastructure organizations as they are scheduled
during the remainder of 1999.
At September 30, 1998, the Corporation's estimate for Year 2000
remediation costs for 1997 - 1999 was approximately $363 million. None of
these costs will be borne by any of the Trusts.
In its normal course of business, the Corporation manages many types of
risk. The Corporation recognizes that the risks presented by Year 2000 are
unique given the pervasive nature of the problem and the higher likelihood
that Year 2000 risk may present itself in multiple, simultaneous impacts.
Because of this, the Corporation has adjusted and will continue to adjust its
risk management processes and contingency plans to take the most probable
anticipated effects into account. In this regard, the Corporation has
begun its event planning for the Year 2000 with the goal of preventing or
mitigating potential disruptions. The Corporation's Year 2000 events
planning includes creation of command centers; performance of dress rehearsals
and simulation modeling for various possible business and operation
risks; establishment of special rapid response technology teams;
scheduling of availability of key personnel; additional training and testing
activities; and the establishment of rapid decision processes.
The Corporation's expectations for completion of its Year 2000
remediation and testing efforts, the anticipated costs to complete the
project and the anticipated business, operational and financial risks to the
Corporation, Chase and the Trusts are subject to a number of uncertainties.
In particular, a large number of similar failures by account obligors,
banks and other financial institutions or other participants in the national
payments systems could also adversely affect the time of collections on
the Mortgage Loans.
Neither the Registrant nor any of its affiliates have made any independent
investigation of the computer systems, of any non-affiliate who may be a
special servicer, paying agent or Trustee for any Series.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Not applicable.
Item 8. Financial Statements and Supplementary Data
See Item 14(a)
Item 9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure
None.
<PAGE>
Part III
Item 10. Directors and Executive Officers of the Registrant
Omitted
Item 11. Executive Compensation
Omitted
Item 12. Security Ownership of Certain Beneficial Owners and Management
Omitted
Item 13. Certain Relationships and Related Transactions
Omitted
<PAGE>
Part IV
Item 14. Exhibits, Financial Statement Schedules, and Reports of Form 8-K
(a) Exhibits.
99.1 Servicer and Special Servicer Annual Statement of
Compliance for each of the following Series
(Servicer listed first, Special Servicer second):
(i) Series 1996-1: The Chase Manhattan Bank,
Lennar Partners, Inc.
(ii) Series 1996-2: The Chase Manhattan Bank,
Lennar Partners, Inc.
(iii) Series 1997-1: The Chase Manhattan Bank,
Amresco Management, Inc. ("Amresco").*
(iv) Series 1997-2: The Chase Manhattan Bank,
Lennar Partners, Inc.
(v) Series 1998-1: The Chase Manhattan Bank,
Banc One Management Capital Markets, LLC
("Banc One").*
99.2 Report prepared by Servicer's and Special Servicer's
certified independent accountant's concerning their
respective duties for the year ended December 31,
1998 (Servicer's accountants listed first,
Special Servicer's second):
(i) Series 1996-1: Price Waterhouse Coopers LLP,
Deloitte & Touche LLP.
(ii) Series 1996-2: Price Waterhouse Coopers LLP
(see Exhibit 99.2(i)),
Deloitte & Touche, LLP.
(iii) Series 1997-1: Price Waterhouse Coopers LLP
(see Exhibit 99.2(i)),
Independent Accountants of Amresco.*
(iv) Series 1997-2: Price Waterhouse Coopers LLP
(see Exhibit 99.2(i)),
Deloitte & Touche LLP.
(v) Series 1998-1: Price Waterhouse Coopers LLP
(see Exhibit 99.2(i)),
Independent Accountants of Banc One.*
*Such document (i) is not filed herewith since such document was not
received by the Reporting Person at least three business days prior to the
due date of this report, and (ii) will be included in an amendment to this
report on Form 10-K/A to be filed within 30 days upon receipt of all such
documents.
(b) Reports on Form 8-K during the last quarter of the prior
calendar year.
(i) Reports on Form 8-K dated as of September 18 and 19 1998,
October 18 and 19, 1998 and November 18 and 19, 1998
in response to Item 5 (other events) of Form 8-K were
filed with respect to information contained in
Distribution Date Statement for each Series (except
for Series 1998-2) delivered for the Distribution
Date occurring in September, October and November, 1998,
respectively.
(ii) Reports on Form 8-K were filed during the last quarter
of the prior calendar year for the following series:
(A) Series 1998-1
October 15, 1998 in response to Item 5
(parent of Special Servicer at that time
had filed for bankruptcy)
(B) Series 1998-2
November 6,1998 in response to Item 5
(computational materials)
November 16, 1998 in response to Item 5
(computational materials)
November 19, 1998 in response to Item 5
(computational materials)
November 30, 1998 in response to Item 2
(disposition of assets)
<PAGE>
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
Chase Commercial Mortgage Securities Corp.
by The Chase Manhattan Bank as Servicer
by: /s/ Patricia A Micka
Name: Patricia A. Micka
Title: Managing Director
Date: March 31, 1999
<PAGE>
SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT
TO SECTION 15 (d) OF THE ACT BY REGISTRANTS WHICH HAVE NOT
REGISTERED SECURITIES PURSUANT TO SECTION 12 OF THE ACT.
No annual report, proxy statement, form of proxy or other proxy soliciting
material has been sent to Certificateholders during the period
covered by this Annual Report on Form 10-K and the registrant does not
intend to furnish such materials to Certificateholders subsequent
to the filing of this report.
<PAGE>
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
Chase Commercial Mortgage Securities Corp.
by The Chase Manhattan Bank as Servicer
by: /s/Patricia A. Micka
Name: Patricia A. Micka
Title: Managing Director
Date: March 31, 1999
<PAGE>
INDEX TO EXHIBITS
99.1 Servicer and Special Servicer Annual Statement of
Compliance
99.2 Report prepared by Servicer's and Special Servicer's
certified independent accountant's concerning their
respective duties for the year ended December 31, 1998
<PAGE>
Exhibit 99.1(i)
[GRAPHIC OMITTED]
CHASE COMMERCIAL MORTGAGE BANK
380 Madison Avenue, 10th Floor
New York, NY 10017
Date: March 24, 1999
Officer's Certificate
Annual Statement as to Compliance for Calendar Year 1998
Commercial Mortgage Pass Through Certificates
Series 1996-1 of Chase Commercial Mortgage Securities
Corp. (the "Company")
o A review of the activities of Chase Commercial Mortgage Bank
(a unit of The Chase Manhattan Bank), as Servicer (the "Servicer") under
the Pooling and Servicing Agreement, dated as of July 1, 1996 (the "Pooling
Agreement"), among the Company, the Servicer, Lennar Partners, Inc., as
Special Servicer, LaSalle National Bank, as Trustee, and ABN Amro Bank,
N.V., as Fiscal Agent, during the preceding year, and its performance under
the Pooling Agreement, has been made under this officer's supervision.
o To the best of this officer's knowledge, we have maintained an
effective internal control system relating to our servicing of the Mortgaged
Loans and have fulfilled our obligations throughout such year.
o The Servicer has received no notification regarding qualification,
or challenging the status, of the Trust Fund as a REMIC from the IRS or
any other governmental agency.
o Terms not separately defined herein have the meanings specified in
the Pooling Agreement.
I have hereunto signed my name and affixed the seal of the Servicer.
By: /s/ Janice M. Smith
Name: Janice M. Smith
Title: Vice President
<PAGE>
CERTIFICATE OF OFFICER
OF
LENNAR PARTNERS, INC.
Pooling and Servicing Agreement
dated as of July 1, 1996, (the "Agreement"), by and among Chase Commercial
Mortgage Securities Corp., as Depositor, The Chase Manhattan Bank, as Servicer,
LaSalle National Bank, as Trustee, ABN AMRO Bank, N.V., as Fiscal Agent, and
Lennar Partners, Inc., as Special Servicer
(CHASE 1996-1)
The undersigned, Ronald E. Schrager, as Vice President of LENNAR PARTNERS,
INC., a Florida Corporation (the "Company"), in accordance with section 3.13
of the Agreement, hereby certifies on behalf of the Company that (i) a
review of the activities of the Company during the year ended December 31,
1998 and of the Company's performance under the Agreement has been performed
under my supervision, (ii) to the best of my knowledge, based on such review,
the Company has maintained an effective internal control system relating to
its servicing of the Mortgage Loans serviced by the Company and has fulfilled
in all material respects its obligations under this Agreement throughout
such period ended December 31, 1998, and (iii) the Company has received no
notice regarding qualification or challenging the status of the Trust Fund
as a REMIC from the IRS or any other governmental agency or body.
IN WITNESS WHEREOF, the undersigned has executed and delivered this Certificate
as of the 12th day of March, 1999.
/s/ Ronald E. Schrager
Ronald E. Schrager
Vice President
Lennar Partners, Inc.
<PAGE>
Exhibit 99.1(ii)
[GRAPHIC OMITTED]
CHASE COMMERCIAL MORTGAGE BANK
380 Madison Avenue, 10th Floor
New York, NY 10017
Date: March 24, 1999
Officer's Certificate
Annual Statement as to Compliance for Calendar Year 1998
Commercial Mortgage Pass Through Certificates
Series 1996-2 of Chase Commercial Mortgage Securities
Corp. (the "Company")
o A review of the activities of Chase Commercial Mortgage Bank
(a unit of The Chase Manhattan Bank), as Servicer (the "Servicer") under
the Pooling and Servicing Agreement, dated as of December 1, 1996 (the "Pooling
Agreement"), among the Company, the Servicer, Lennar Partners, Inc., as
Special Servicer, LaSalle National Bank, as Trustee, and ABN Amro Bank, N.V.,
as Fiscal Agent, during the preceding year, and its performance under the
Pooling Agreement, has been made under this officer's supervision.
o To the best of this officer's knowledge, we have maintained an
effective internal control system relating to our servicing of the Mortgaged
Loans and have fulfilled our obligations throughout such year.
o The Servicer has received no notification regarding qualification,
or challenging the status, of the Trust Fund as a REMIC from the IRS or any
other governmental agency.
o Terms not separately defined herein have the meanings specified in the
Pooling Agreement.
I have hereunto signed my name and affixed the seal of the Servicer.
By: /s/ Janice M. Smith
Name: Janice M. Smith
Title: Vice President
<PAGE>
CERTIFICATE OF OFFICER
OF
LENNAR PARTNERS, INC.
Pooling and Servicing Agreement
dated as of December 1, 1996, (the "Agreement"), by and among Chase Commercial
Mortgage Securities Corp., as Depositor, The Chase Manhattan Bank, as Servicer,
LaSalle National Bank, as Trustee, ABN AMRO Bank, N.V., as Fiscal Agent, and
Lennar Partners, Inc., as Special Servicer
(CHASE 1996-2)
The undersigned, Ronald E. Schrager, as Vice President of LENNAR PARTNERS,
INC., a Florida Corporation (the "Company"), in accordance with section 3.13
of the Agreement, hereby certifies on behalf of the Company that (i) a
review of the activities of the Company during the year ended December 31,
1998 and of the Company's performance under the Agreement has been performed
under my supervision, (ii) to the best of my knowledge, based on such review,
the Company has maintained an effective internal control system relating to
its servicing of the Mortgage Loans serviced by the Company and has
fulfilled in all material respects its obligations under this Agreement
throughout such period ended December 31, 1998, and (iii) the Company has
received no notice regarding qualification or challenging the status of the
Trust Fund as a REMIC from the IRS or any other governmental agency or body.
IN WITNESS WHEREOF, the undersigned has executed and delivered this Certificate
as of the 12th day of March, 1999.
/s/ Ronald E. Schrager
Ronald E. Schrager
Vice President
Lennar Partners, Inc.
<PAGE>
Exhibit 99.1 (iii)
[GRAPHIC OMITTED]
CHASE COMMERCIAL MORTGAGE BANK
380 Madison Avenue, 10th Floor
New York, NY 10017
Date: March 24, 1999
Officer's Certificate
Annual Statement as to Compliance for Calendar Year 1998
Commercial Mortgage Pass Through Certificates
Series 1997-1 of Chase Commercial Mortgage Securities
Corp. (the "Company")
o A review of the activities of Chase Commercial Mortgage Bank
(a unit of The Chase Manhattan Bank), as Servicer (the "Servicer") under
the Pooling and Servicing Agreement, dated as of June 1, 1997 (the "Pooling
Agreement"), among the Company, the Servicer, AMRESCO, Inc., as Special
Servicer, LaSalle National Bank, as Trustee, and ABN Amro Bank, N.V., as
Fiscal Agent, during the preceding year, and its performance under the Pooling
Agreement, has been made under this officer's supervision.
o To the best of this officer's knowledge, we have maintained an
effective internal control system relating to our servicing of the Mortgaged
Loans and have fulfilled our obligations throughout such year.
o The Servicer has received no notification regarding qualification,
or challenging the status, of the Trust Fund as a REMIC from the IRS or any
other governmental agency.
o Terms not separately defined herein have the meanings specified in
the Pooling Agreement.
I have hereunto signed my name and affixed the seal of the Servicer.
By: /s/ Janice M. Smith
Name: Janice M. Smith
Title: Vice President
<PAGE>
<PAGE>
Exhibit 99.1 (iv)
[GRAPHIC OMITTED]
CHASE COMMERCIAL MORTGAGE BANK
380 Madison Avenue, 10th Floor
New York, NY 10017
Date: March 24, 1999
Officer's Certificate
Annual Statement as to Compliance for Calendar Year 1998
Commercial Mortgage Pass Through Certificates
Series 1997-2 of Chase Commercial Mortgage Securities
Corp. (the "Company")
o A review of the activities of Chase Commercial Mortgage Bank (a
unit of The Chase Manhattan Bank), as Servicer (the "Servicer") under the
Pooling and Servicing Agreement, dated as of December 1, 1997 (the "Pooling
Agreement"), among the Company, the Servicer, Lennar Partners, Inc., as
Special Servicer, State Street Bank and Trust Co., as Trustee, and ABN Amro
Bank, N.V., as Fiscal Agent, during the preceding year, and its performance
under the Pooling Agreement, has been made under this officer's supervision.
o To the best of this officer's knowledge, we have maintained an
effective internal control system relating to our servicing of the Mortgaged
Loans and have fulfilled our obligations throughout such year.
o The Servicer has received no notification regarding qualification,
or challenging the status, of the Trust Fund as a REMIC from the IRS or any
other governmental agency.
o Terms not separately defined herein have the meanings specified in
the Pooling Agreement.
I have hereunto signed my name and affixed the seal of the Servicer.
By: /s/ Janice M. Smith
Name: Janice M. Smith
Title: Vice President
<PAGE>
CERTIFICATE OF OFFICER
OF
LENNAR PARTNERS, INC.
Pooling and Servicing Agreement
dated as of December 1, 1997, (the "Agreement"), by and among Chase Commercial
Mortgage Securities Corp., as Depositor, The Chase Manhattan Bank, as Servicer,
State Street Bank and Trust Company, as Trustee and
Lennar Partners, Inc., as Special Servicer
(CHASE 1997-2)
The undersigned, Ronald E. Schrager, as Vice President of LENNAR PARTNERS,
INC., a Florida Corporation (the "Company"), in accordance with section 3.13
of the Agreement, hereby certifies on behalf of the Company that (i) a
review of the activities of the Company during the year ended December 31,
1998 and of the Company's performance under the Agreement has been performed
under my supervision, (ii) to the best of my knowledge, based on such review,
the Company has maintained an effective internal control system relating to
its servicing of the Mortgage Loans serviced by the Company and has fulfilled
in all material respects its obligations under this Agreement throughout
such period ended December 31, 1998, and (iii) the Company has received no
notice regarding qualification or challenging the status of the Trust Fund
as a REMIC from the IRS or any other governmental agency or body.
IN WITNESS WHEREOF, the undersigned has executed and delivered this Certificate
as of the 12th day of March, 1999.
/s/ Ronald E. Schrager
Ronald E. Schrager
Vice President
Lennar Partners, Inc.
<PAGE>
Exhibit 99.1(v)
[GRAPHIC OMITTED]
CHASE COMMERCIAL MORTGAGE BANK
380 Madison Avenue, 10th Floor
New York, NY 10017
Date: March 24, 1999
Officer's Certificate
Annual Statement as to Compliance for Calendar Year 1998
Commercial Mortgage Pass Through Certificates
Series 1998-1 of Chase Commercial Mortgage Securities
Corp. (the "Company")
o A review of the activities of Chase Commercial Mortgage Bank (a
unit of The Chase Manhattan Bank), as Servicer (the "Servicer") under the
Pooling and Servicing Agreement, dated as of May 1, 1998 (the "Pooling
Agreement"), among the Company, the Servicer, Banc One Management Capital
Markets, LLC, as Special Servicer and State Street Bank and Trust Co., as
Trustee during the preceding year, and its performance under the Pooling
Agreement, has been made under this officer's supervision.
o To the best of this officer's knowledge, we have maintained an
effective internal control system relating to our servicing of the Mortgaged
Loans and have fulfilled our obligations throughout such year.
o The Servicer has received no notification regarding qualification,
or challenging the status, of the Trust Fund as a REMIC from the IRS or any
other governmental agency.
o Terms not separately defined herein have the meanings specified in
the Pooling Agreement.
I have hereunto signed my name and affixed the seal of the Servicer.
By: /s/ Janice M. Smith
Name: Janice M. Smith
Title: Vice President
<PAGE>
Exhibit 99.2(i)
PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Telephone (212) 596-8000
Facsimile (212) 596-8910
Report of Independent Accountants
March 19, 1999
To the Board of Directors and Stockholder of
The Chase Manhattan Bank
We have examined management's assertion about the Chase Commercial
Mortgage Banking Group's ("CCMB"), a unit of The Chase Manhattan Bank,
compliance with the minimum servicing standards identified in the Mortgage
Bankers Association of America's Uniform Single Attestation Program for
Mortgage Bankers ("USAP") exclusive of standard V.4 (collectively the
"Applicable Standards") as of and for the year ended December 31, 1998,
included in the accompanying management assertion (see Exhibit 1).
Management is responsible for CCMB's compliance with those Applicable Standards.
Our responsibility is to express an opinion exclusively on management's
assertion about CCMB's compliance with the Applicable Standards based on our
examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly,
included examining, on a test basis, evidence about CCMB's compliance with
the Applicable Standards and performing such other procedures as we considered
necessary in the circumstances. We believe that our examination provides a
reasonable basis for our opinion. Our examination does not provide legal
determination on CCMB's compliance with the Applicable Standards.
In our opinion, management's assertion that CCMB complied with the
Applicable Standards as of and for the year ended December 31,1998, is
fairly stated, in all material respects.
PricewaterhouseCoopers LLP
<PAGE>
[GRAPHIC OMITTED]
March 18, 1999
Pricewaterhouse Coopers LLP
1177 Avenue of the Americas
New York, NY 10036
Gentlemen:
As of and for the year ended December 31, 1998, Chase Commercial Mortgage
Banking Group ("CCMB"), a unit of The Chase Manhattan Bank, has complied in
all material respects with the minimum servicing standards applicable to
commercial mortgage loan servicing set forth in the Mortgage Bankers
Association of America's Uniform Single Attestation Program For Mortgage
Bankers. As of and for this same period, CCMB has in effect a fidelity bond
in the amount of $200,000,000 and errors and omissions policy in the amount
of $25,000,000.
/s/ Patricia A. Micka
Patricia A. Micka, Managing Director
The Chase Manhattan Bank
/s/ Janice M. Smith
Janice M. Smith, Vice President
The Chase Manhattan Bank
/s/ William T. Barry
William T. Barry, Vice President
The Chase Manhattan Bank
<PAGE>
Deloitte &
Touche
Deloitte & Touche LLP Telephone: (305) 358-4141
Certified Public Accountants Facsimile: (305) 372-3160
Suite 400
200 South Biscayne Boulevard
Miami, Florida 33131-2310
INDEPENDENT ACCOUNTANT'S REPORT
To the Board of Directors of
Lennar Partners, Inc.
We have examined management's assertion about Lennar Partners, Inc.'s (the
"Company") compliance with the minimum servicing standards identified in the
Mortgage Banker's Association of America's Uniform Single Attestation
Program for Mortgage Bankers (USAP) as applicable to the special servicing
of commercial and miltifamily mortgage loans as of and for the year ended
December 31, 1998 included in the accompanying management assertion.
Management is responsible for the Company's compliance with those applicable
minimum servicing standards. Our responsibility is to express an opinion on
management's assertion about the entity's compliance based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly,
included examining, on a test basis, evidence about the Company's compliance
with the applicable minimum servicing standards and performing such other
procedures as we considered necessary in the circumstances. We believe that
our examination provides a reasonable basis for our opinion. Our examination
does not provide a legal determination on the Company's compliance with
the applicable minimum servicing standards.
In our opinion, management's assertion that the Company complied with the
aforementioned applicable minimum servicing standards as of and for the year
ended December 31, 1998 is fairly stated, in all material respects.
/s/ Deloitte & Touche LLP
February 12, 1999
<PAGE>
Lennar Partners
An LNR Company
February 12, 1999
LaSalle National Bank
135 S. LaSalle Street, Suite 1625
Chicago, IL 60603
Attention: Asset-Backed Securities
Chase Commercial Mortgage Securities Corp., Series 1996-1
Re: Annual Independent Public Accountant's Servicing Report
Chase Commercial Mortgage Securities Corp.
Commercial Mortgage Pass-Through Certificates, Series 1996-1
To whom it may concern:
As of and for the year ended December 31, 1998, Lennar Partners, Inc. has
complied in all material respects with the applicable minimum servicing
standards set forth in the Mortgage Bankers Association of America's
Uniform Single Attestation Program for Mortgage Bankers to the commercial
and multifamily mortgages for the special servicer as noted in the
attachment to this assertion. As of an for this same period, Lennar Partners,
Inc. had in effect a fidelity bond in the amount of $7,500,000 and an
errors and omissions policy in the amount of $10,000,000.
Sincerely,
LENNAR PARTNERS INC.
/s/ Susan K. Chapman
Susan K. Chapman
Vice President
cc: Chase Manhattan Bank
CCMB Servicing Division
380 Madison Avenue, 11th Floor
New York, NY 10017
Attention: Janice Smith, V.P.
Chase Manhattan Bank
450 West 33rd Street, 15th Floor
New York, NY 10001
Attention: Structured Finance Services (MBS)
<PAGE>
<TABLE>
Mortgage Bankers Association of America
Uniform Single Attestation Program for Mortgage Bankers
Minimum Servicing Standards Applicable to
Lennar Partners, Inc. as Special Servicer for
Chase Commercial Mortgage Securities Corporation, Series 1996-1
- - -------- ---------------------------------------------------------- ------------------- --------------------
<S> <C> <C> <C>
MINIMUM SERVICING STANDARDS APPLICABLE NOT APPLICABLE
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
I. Custodial Bank Accounts
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. Reconciliations shall be prepared on a monthly basis for X
all custodial bank accounts and related bank clearing
accounts.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
2. Funds of the Servicing entity shall be advanced in cases X
where there is an overdraft in an investor's or a
mortgagor's account.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
3. Each custodial account shall be maintained at a X
federally insured depository institution in trust for
the applicable investor.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
4. Escrow funds held in trust for a mortgagor shall be X
returned to the mortgagor within thirty (30) calendar
days of payoff of the mortgage loan.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
II. Mortgage Payments
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. Mortgage payments shall be deposited into the custodial X
bank accounts and related bank clearing accounts within
two business days of receipt.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
2. Mortgage payments made in accordance with the X
mortgagor's loan documents shall be posted to the
applicable mortgagor records within two business days of
receipt.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
3. Mortgage payments shall be allocated to principal, X
interest, insurance, taxes or other escrow items in
accordance with the mortgagor's loan documents.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
4. Mortgage payments identified as loan payoffs shall be X
allocated in accordance with the mortgagor's loan
documents.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
III. Disbursements
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. Disbursements made via wire transfer on behalf of a X
mortgagor or investor shall be made only by authorized
personnel
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
2. Disbursements made on behalf of a mortgagor or investor X
shall be posted within two business days to the
mortgagor's or investor's records maintained by the
servicing entity.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
3. Tax and insurance payments shall be made on or before X
the penalty or insurance policy expiration date, as
indicated on tax bills and insurance premium notices,
respectively, provided that such support has been
received by the servicing entity at least thirty (30)
calendar days prior to these dates.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
4. Any late payment penalties paid in conjunction with the X
payment of any tax bill or insurance premium notice
shall be paid from the servicing entity's funds and not
charged to the mortgagor, unless the late payment was
due to the mortgagor's error or omission.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
5. Amounts remitted to investors per the servicer's X
investor reports shall agree with canceled checks, or
other form of payment, or custodial bank statements
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
6. Unused checks shall be safeguarded so as to prevent X
unauthorized access.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
IV. Investor Accounting and Reporting
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. The servicing entity's investor report shall agree with X
or reconcile to investors' records on a monthly basis as
to the total unpaid principal balance and number of
loans serviced by the servicing entity.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
V. Mortgagor Loan Accounting
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. The servicing entity's mortgage loan records shall agree X
with, or reconcile to, the records of mortgagors with
respect to the unpaid principal balance on a monthly
basis.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
2. Adjustments on ARM loans shall be computed based on the X
related mortgage note and any ARM rider.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
3. Escrow accounts shall be analyzed in accordance with the X
mortgagor's loan documents, on at least an annual basis.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
4. Interest on escrow accounts shall be paid, or credited, X
to mortgagors in accordance with the applicable state
laws. (A compilation of state laws relating to the
payment of interest on escrow accounts may be obtained
through the MBA's FAX ON DEMAND service. For more
information, contact MBA.)
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
VI. Delinquencies
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. Records documenting collection efforts shall be X
maintained during the period a loan is in default and
shall be updated at least monthly. Such records shall
describe the entity's activities in monitoring
delinquent loans including, for example, phone calls,
letters and mortgage payment rescheduling plans in cases
where the delinquency is deemed temporary (e.g., illness
or unemployment)
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
VII. Insurance Policies
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. A fidelity bond and errors and omissions policy shall be X
in effect on the servicing entity throughout the
reporting period in the amount of coverage represented
to investors in management's assertion.
- - -------- ---------------------------------------------------------- ------------------- --------------------
</TABLE>
<PAGE>
Exhibit 99.2(ii)
Deloitte &
Touche
Deloitte & Touche LLP Telephone: (305) 358-4141
Certified Public Accountants Facsimile: (305) 372-3160
Suite 400
200 South Biscayne Boulevard
Miami, Florida 33131-2310
INDEPENDENT ACCOUNTANT'S REPORT
To the Board of Directors of
Lennar Partners, Inc.
We have examined management's assertion about Lennar Partners, Inc.'s (the
"Company") compliance with the minimum servicing standards identified in the
Mortgage Banker's Association of America's Uniform Single Attestation
Program for Mortgage Bankers (USAP) as applicable to the special servicing
of commercial and miltifamily mortgage loans as of and for the year ended
December 31, 1998 included in the accompanying management assertion.
Management is responsible for the Company's compliance with those applicable
minimum servicing standards. Our responsibility is to express an opinion
on management's assertion about the entity's compliance based on our
examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly,
included examining, on a test basis, evidence about the Company's compliance
with the applicable minimum servicing standards and performing such other
procedures as we considered necessary in the circumstances. We believe that
our examination provides a reasonable basis for our opinion. Our examination
does not provide a legal determination on the Company's compliance with
the applicable minimum servicing standards.
In our opinion, management's assertion that the Company complied with the
aforementioned applicable minimum servicing standards as of and for the year
ended December 31, 1998 is fairly stated, in all material respects.
/s/ Deloitte & Touche LLP
February 12, 1999
<PAGE>
Lennar Partners
An LNR Company
February 12, 1999
LaSalle National Bank
135 S. LaSalle Street, Suite 1625
Chicago, IL 60603
Attention: Asset-Backed Securities
Chase Commercial Mortgage Securities Corp., Series 1996-2
Re: Annual Independent Public Accountant's Servicing Report
Chase Commercial Mortgage Securities Corp.
Commercial Mortgage Pass-Through Certificates, Series 1996-2
To whom it may concern:
As of and for the year ended December 31, 1998, Lennar Partners, Inc. has
complied in all material respects with the applicable minimum servicing
standards set forth in the Mortgage Bankers Association of America's
Uniform Single Attestation Program for Mortgage Bankers to the commercial
and multifamily mortgages for the special servicer as noted in the attachment
to this assertion. As of an for this same period, Lennar Partners, Inc.
had in effect a fidelity bond in the amount of $7,500,000 and an errors and
omissions policy in the amount of $10,000,000.
Sincerely,
LENNAR PARTNERS INC.
/s/ Susan K. Chapman
Susan K. Chapman
Vice President
cc: Chase Manhattan Bank
CCMB Servicing Division
380 Madison Avenue, 11th Floor
New York, NY 10017
Attention: Janice Smith, V.P.
Chase Manhattan Bank
450 West 33rd Street, 15th Floor
New York, NY 10001
Attention: Structured Finance Services (MBS)
<PAGE>
<TABLE>
Mortgage Bankers Association of America
Uniform Single Attestation Program for Mortgage Bankers
Minimum Servicing Standards Applicable to
Lennar Partners, Inc. as Special Servicer for
Chase Commercial Mortgage Securities Corporation, Series 1996-2
- - -------- ---------------------------------------------------------- ------------------- --------------------
<S> <C> <C> <C>
MINIMUM SERVICING STANDARDS APPLICABLE NOT APPLICABLE
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
I. Custodial Bank Accounts
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. Reconciliations shall be prepared on a monthly basis for X
all custodial bank accounts and related bank clearing
accounts.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
2. Funds of the Servicing entity shall be advanced in cases X
where there is an overdraft in an investor's or a
mortgagor's account.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
3. Each custodial account shall be maintained at a X
federally insured depository institution in trust for
the applicable investor.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
4. Escrow funds held in trust for a mortgagor shall be X
returned to the mortgagor within thirty (30) calendar
days of payoff of the mortgage loan.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
II. Mortgage Payments
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. Mortgage payments shall be deposited into the custodial X
bank accounts and related bank clearing accounts within
two business days of receipt.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
2. Mortgage payments made in accordance with the X
mortgagor's loan documents shall be posted to the
applicable mortgagor records within two business days of
receipt.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
3. Mortgage payments shall be allocated to principal, X
interest, insurance, taxes or other escrow items in
accordance with the mortgagor's loan documents.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
4. Mortgage payments identified as loan payoffs shall be X
allocated in accordance with the mortgagor's loan
documents.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
III. Disbursements
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. Disbursements made via wire transfer on behalf of a X
mortgagor or investor shall be made only by authorized
personnel
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
2. Disbursements made on behalf of a mortgagor or investor X
shall be posted within two business days to the
mortgagor's or investor's records maintained by the
servicing entity.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
3. Tax and insurance payments shall be made on or before X
the penalty or insurance policy expiration date, as
indicated on tax bills and insurance premium notices,
respectively, provided that such support has been
received by the servicing entity at least thirty (30)
calendar days prior to these dates.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
4. Any late payment penalties paid in conjunction with the X
payment of any tax bill or insurance premium notice
shall be paid from the servicing entity's funds and not
charged to the mortgagor, unless the late payment was
due to the mortgagor's error or omission.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
5. Amounts remitted to investors per the servicer's X
investor reports shall agree with canceled checks, or
other form of payment, or custodial bank statements
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
6. Unused checks shall be safeguarded so as to prevent X
unauthorized access.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
IV. Investor Accounting and Reporting
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. The servicing entity's investor report shall agree with X
or reconcile to investors' records on a monthly basis as
to the total unpaid principal balance and number of
loans serviced by the servicing entity.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
V. Mortgagor Loan Accounting
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. The servicing entity's mortgage loan records shall agree X
with, or reconcile to, the records of mortgagors with
respect to the unpaid principal balance on a monthly
basis.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
2. Adjustments on ARM loans shall be computed based on the X
related mortgage note and any ARM rider.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
3. Escrow accounts shall be analyzed in accordance with the X
mortgagor's loan documents, on at least an annual basis.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
4. Interest on escrow accounts shall be paid, or credited, X
to mortgagors in accordance with the applicable state
laws. (A compilation of state laws relating to the
payment of interest on escrow accounts may be obtained
through the MBA's FAX ON DEMAND service. For more
information, contact MBA.)
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
VI. Delinquencies
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. Records documenting collection efforts shall be X
maintained during the period a loan is in default and
shall be updated at least monthly. Such records shall
describe the entity's activities in monitoring
delinquent loans including, for example, phone calls,
letters and mortgage payment rescheduling plans in cases
where the delinquency is deemed temporary (e.g., illness
or unemployment)
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
VII. Insurance Policies
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. A fidelity bond and errors and omissions policy shall be X
in effect on the servicing entity throughout the
reporting period in the amount of coverage represented
to investors in management's assertion.
- - -------- ---------------------------------------------------------- ------------------- --------------------
</TABLE>
<PAGE>
Exhibit 99.2(iv)
Deloitte &
Touche
Deloitte & Touche LLP Telephone: (305) 358-4141
Certified Public Accountants Facsimile: (305) 372-3160
Suite 400
200 South Biscayne Boulevard
Miami, Florida 33131-2310
INDEPENDENT ACCOUNTANT'S REPORT
To the Board of Directors of
Lennar Partners, Inc.
We have examined management's assertion about Lennar Partners, Inc.'s (the
"Company") compliance with the minimum servicing standards identified in the
Mortgage Banker's Association of America's Uniform Single Attestation
Program for Mortgage Bankers (USAP) as applicable to the special servicing
of commercial and multifamily mortgage loans as of and for the year ended
December 31, 1998 included in the accompanying management assertion.
Management is responsible for the Company's compliance with those
applicable minimum servicing standards. Our responsibility is to express
an opinion on management's assertion about the entity's compliance based
on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly,
included examining, on a test basis, evidence about the Company's compliance
with the applicable minimum servicing standards and performing such other
procedures as we considered necessary in the circumstances. We believe that
our examination provides a reasonable basis for our opinion. Our examination
does not provide a legal determination on the Company's compliance with
the applicable minimum servicing standards.
In our opinion, management's assertion that the Company complied with the
aforementioned applicable minimum servicing standards as of and for the year
ended December 31, 1998 is fairly stated, in all material respects.
/s/ Deloitte & Touche LLP
February 12, 1999
<PAGE>
Lennar Partners
An LNR Company
February 12, 1999
LaSalle National Bank
135 S. LaSalle Street, Suite 1625
Chicago, IL 60603
Attention: Asset-Backed Securities
Chase Commercial Mortgage Securities Corp., Series 1997-2
Re: Annual Independent Public Accountant's Servicing Report
Chase Commercial Mortgage Securities Corp.
Commercial Mortgage Pass-Through Certificates, Series 1997-2
To whom it may concern:
As of and for the year ended December 31, 1998, Lennar Partners, Inc. has
complied in all material respects with the applicable minimum servicing
standards set forth in the Mortgage Bankers Association of America's
Uniform Single Attestation Program for Mortgage Bankers to the commercial
and multifamily mortgages for the special servicer as noted in the
attachment to this assertion. As of an for this same period, Lennar Partners,
Inc. had in effect a fidelity bond in the amount of $7,500,000 and an
errors and omissions policy in the amount of $10,000,000.
Sincerely,
LENNAR PARTNERS INC.
/s/ Susan K. Chapman
Susan K. Chapman
Vice President
cc: Chase Manhattan Bank
CCMB Servicing Division
380 Madison Avenue, 11th Floor
New York, NY 10017
Attention: Janice Smith, V.P.
Chase Manhattan Bank
450 West 33rd Street, 15th Floor
New York, NY 10001
Attention: Structured Finance Services (MBS)
<PAGE>
<TABLE>
Mortgage Bankers Association of America
Uniform Single Attestation Program for Mortgage Bankers
Minimum Servicing Standards Applicable to
Lennar Partners, Inc. as Special Servicer for
Chase Commercial Mortgage Securities Corporation, Series 1997-2
- - -------- ---------------------------------------------------------- ------------------- --------------------
<S> <C> <C> <C>
MINIMUM SERVICING STANDARDS APPLICABLE NOT APPLICABLE
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
I. Custodial Bank Accounts
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. Reconciliations shall be prepared on a monthly basis for X
all custodial bank accounts and related bank clearing
accounts.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
2. Funds of the Servicing entity shall be advanced in cases X
where there is an overdraft in an investor's or a
mortgagor's account.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
3. Each custodial account shall be maintained at a X
federally insured depository institution in trust for
the applicable investor.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
4. Escrow funds held in trust for a mortgagor shall be X
returned to the mortgagor within thirty (30) calendar
days of payoff of the mortgage loan.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
II. Mortgage Payments
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. Mortgage payments shall be deposited into the custodial X
bank accounts and related bank clearing accounts within
two business days of receipt.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
2. Mortgage payments made in accordance with the X
mortgagor's loan documents shall be posted to the
applicable mortgagor records within two business days of
receipt.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
3. Mortgage payments shall be allocated to principal, X
interest, insurance, taxes or other escrow items in
accordance with the mortgagor's loan documents.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
4. Mortgage payments identified as loan payoffs shall be X
allocated in accordance with the mortgagor's loan
documents.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
III. Disbursements
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. Disbursements made via wire transfer on behalf of a X
mortgagor or investor shall be made only by authorized
personnel
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
2. Disbursements made on behalf of a mortgagor or investor X
shall be posted within two business days to the
mortgagor's or investor's records maintained by the
servicing entity.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
3. Tax and insurance payments shall be made on or before X
the penalty or insurance policy expiration date, as
indicated on tax bills and insurance premium notices,
respectively, provided that such support has been
received by the servicing entity at least thirty (30)
calendar days prior to these dates.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
4. Any late payment penalties paid in conjunction with the X
payment of any tax bill or insurance premium notice
shall be paid from the servicing entity's funds and not
charged to the mortgagor, unless the late payment was
due to the mortgagor's error or omission.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
5. Amounts remitted to investors per the servicer's X
investor reports shall agree with canceled checks, or
other form of payment, or custodial bank statements
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
6. Unused checks shall be safeguarded so as to prevent X
unauthorized access.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
IV. Investor Accounting and Reporting
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. The servicing entity's investor report shall agree with X
or reconcile to investors' records on a monthly basis as
to the total unpaid principal balance and number of
loans serviced by the servicing entity.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
V. Mortgagor Loan Accounting
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. The servicing entity's mortgage loan records shall agree X
with, or reconcile to, the records of mortgagors with
respect to the unpaid principal balance on a monthly
basis.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
2. Adjustments on ARM loans shall be computed based on the X
related mortgage note and any ARM rider.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
3. Escrow accounts shall be analyzed in accordance with the X
mortgagor's loan documents, on at least an annual basis.
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
4. Interest on escrow accounts shall be paid, or credited, X
to mortgagors in accordance with the applicable state
laws. (A compilation of state laws relating to the
payment of interest on escrow accounts may be obtained
through the MBA's FAX ON DEMAND service. For more
information, contact MBA.)
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
VI. Delinquencies
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. Records documenting collection efforts shall be X
maintained during the period a loan is in default and
shall be updated at least monthly. Such records shall
describe the entity's activities in monitoring
delinquent loans including, for example, phone calls,
letters and mortgage payment rescheduling plans in cases
where the delinquency is deemed temporary (e.g., illness
or unemployment)
- - -------- ---------------------------------------------------------- ------------------- --------------------
- - -------- ---------------------------------------------------------- ------------------- --------------------
VII. Insurance Policies
- - -------- ---------------------------------------------------------- ------------------- --------------------
1. A fidelity bond and errors and omissions policy shall be X
in effect on the servicing entity throughout the
reporting period in the amount of coverage represented
to investors in management's assertion.
- - -------- ---------------------------------------------------------- ------------------- --------------------
</TABLE>
