<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 9, 1998
ARCADIA RECEIVABLES FINANCE CORP.
as originator of
ARCADIA AUTOMOBILE RECEIVABLES TRUST, 1998-D
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(Exact name of registrant as specified in its charter)
Delaware 333-48141 41-1743653
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(State or other jurisdiction (Commission (IRS employer
of incorporation) file number) identification No.)
7825 Washington Avenue South, Suite 410, Minneapolis, Minnesota 55439-2435
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(Address of principal executive offices)
Registrant's telephone number, including area code: (612) 942-9880
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(Former name or former address, if changed since last report)
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Item 1. CHANGES IN CONTROL OF REGISTRANT.
Not applicable.
Item 2. ACQUISITION OR DISPOSITION OF ASSETS.
Not applicable.
Item 3. BANKRUPTCY OR RECEIVERSHIP.
Not applicable.
Item 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANTS.
Not applicable.
Item 5. OTHER EVENTS.
On November 9, 1998, the Registrant made available to prospective
investors a term sheet (the "Term Sheet") setting forth a
description of the initial collateral pool and the proposed
structure for the issuance of $200,000,000 aggregate principal
amount of asset-backed notes by Arcadia Automobile Receivables
Trust, 1998-D. The Term Sheet is attached hereto as Exhibit 99.
Item 6. RESIGNATIONS OF REGISTRANT'S DIRECTORS.
Not applicable.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
The following are filed herewith. The exhibit numbers correspond
with Item 601(b) of Regulation S-K.
Exhibit No. Description
----------- -----------
99 Term Sheet dated November 9, 1998 of Arcadia
Automobile Receivables Trust, 1998-D
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: November 11, 1998 ARCADIA RECEIVABLES FINANCE CORP.,
as originator of Arcadia Automobile
Receivables Trust, 1998-D
By: /s/ Brian S. Anderson
------------------------------------
Brian S. Anderson
Senior Vice President
<PAGE>
SUBJECT TO REVISION
TERM SHEET DATED NOVEMBER 9, 1998
$200,000,000 AUTOMOBILE RECEIVABLES-BACKED NOTES
ARCADIA AUTOMOBILE RECEIVABLES TRUST, 1998-D
ISSUER
ARCADIA RECEIVABLES FINANCE CORPORATION
SELLER
ARCADIA FINANCIAL LTD.
SERVICER
Attached is a preliminary Term Sheet describing the structure, collateral pool
and certain aspects of the Arcadia Automobile Receivables Trust, 1998-D. The
Term Sheet has been prepared by the Seller for informational purposes only and
is subject to modification or change. The information and assumptions contained
in the Term Sheet are preliminary and will be superseded in their entirety by a
Prospectus Supplement and by any other additional information subsequently filed
with the Securities and Exchange Commission or incorporated by reference in the
relevant registration statement. In addition, the attached Term Sheet
supersedes any prior or similar term sheet.
None of the Underwriters named below and none of their respective affiliates
makes any representation as to the accuracy or completeness of any of the
information set forth in the attached Term Sheet. This cover sheet is not a
part of the Term Sheet.
THE REGISTRATION STATEMENT (INCLUDING A BASE PROSPECTUS) RELATING TO THE TRUST
HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AND HAS BEEN DECLARED
EFFECTIVE. THE PROSPECTUS SUPPLEMENT RELATING TO THE SECURITIES OFFERED BY THE
TRUST WILL BE FILED AFTER THE SECURITIES HAVE BEEN PRICED AND ALL OF THE TERMS
AND INFORMATION ARE FINALIZED. THIS COMMUNICATION IS NOT AN OFFER TO SELL OR
THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE
SECURITIES OF THE TRUST IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE
WOULD BE UNLAWFUL BEFORE THE REGISTRATION OR QUALIFICATION UNDER THE SECURITIES
LAWS OF ANY SUCH STATE. YOU SHOULD REVIEW THE PROSPECTUS AND PROSPECTUS
SUPPLEMENT, AND YOUR INVESTMENT DECISION SHOULD BE BASED UPON THE INFORMATION IN
THE PROSPECTUS AND PROSPECTUS SUPPLEMENT AS OF THEIR PUBLICATION DATE. SALES OF
THE SECURITIES TO BE OFFERED BY THE TRUST MAY NOT BE CONSUMMATED UNLESS YOU HAVE
RECEIVED BOTH THE PROSPECTUS AND THE PROSPECTUS SUPPLEMENT. THE SECURITIES TO
BE OFFERED BY THE TRUST UNDER THE PROSPECTUS SUPPLEMENT HAVE NOT BEEN APPROVED
OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION; ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
UNDERWRITERS OF THE NOTES
Credit Suisse First Boston Chase Securities Inc.
<PAGE>
ARCADIA AUTOMOBILE RECEIVABLES TRUST, 1998-D
TERM SHEET
SUBJECT TO REVISION
PARTIES
THE TRUST
Arcadia Automobile Receivables Trust, 1998-D will issue the Notes and be liable
for their payment. The Trust's principal asset will be a pool of automobile
loans.
SELLER
Arcadia Receivables Finance Corp. is a wholly-owned special-purpose subsidiary
of Arcadia Financial Ltd. Arcadia Receivables Finance Corp. will sell the
automobile loans to the Trust.
SERVICER
Arcadia Financial Ltd. will service the automobile loans held by the Trust.
THE INSURER
Financial Security Assurance Inc. will issue a note policy, which will guarantee
the payment of timely principal and interest due on the Notes, but only as set
forth in the section of the Prospectus Supplement entitled "The Note Policy."
THE INDENTURE TRUSTEE
Norwest Bank Minnesota, National Association will serve as the indenture trustee
and indenture collateral agent.
THE OWNER TRUSTEE
Wilmington Trust Company.
THE BACKUP SERVICER
Norwest Bank Minnesota, National Association.
ADMINISTRATOR
Wilmington Trust Company.
DATES
PRELIMINARY CUTOFF DATE
October 29, 1998. This is the date used for preparing the statistical
information used in this Term Sheet.
INITIAL CUTOFF DATE
November 5, 1998. The Trust will receive payments due on, or received with
respect to, the initial pool of automobile loans after this date.
SUBSEQUENT CUTOFF DATE
The Seller will designate a subsequent cutoff date with respect to each pool of
subsequent receivables purchased by the Trust after the closing date.
THE RECEIVABLES
The receivables include retail installment sales contracts and promissory notes
purchased from motor vehicle dealers by Arcadia Financial in the ordinary course
of business. These receivables are secured by new and used automobiles and
light trucks.
On the closing date, pursuant to a sale and servicing agreement, the Trust will
purchase the initial receivables from the Seller that are expected to have an
aggregate principal balance of approximately $140,000,000 as of the Initial
Cutoff Date. The Trust will also purchase, subject to the satisfaction of
certain conditions, subsequent receivables prior to the distribution date in
January 1999 that are expected to have an aggregate principal balance of
approximately $60,000,000.
DESCRIPTION OF THE NOTES
GENERAL
The Trust will issue four classes of its asset backed notes. The Notes are
designated as the "Class A-1 Notes," the "Class A-2 Notes," the "Class A-3
Notes" and the "Class A-4 Notes."
Each class of Notes will have the initial principal amount and interest rate set
forth in the following table. The dates on which the final payment of principal
and interest on each class of Notes is
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scheduled to be made are also set forth in the following table.
<TABLE>
<CAPTION>
Final
Initial Note Scheduled
Principal Distribution
Class Balance (1) Date
- - ----- ------------- -----------------
<S> <C> <C>
A-1 $13,000,000 December 15, 1999
A-2 $32,000,000 November 15, 2001
A-3 $55,000,000 August 15, 2006
A-4 $100,000,000 August 15, 2006
</TABLE>
The Notes will initially be issued in book-entry form only. The Notes will be
issued in minimum denominations of $1,000 and multiples of $1,000 in excess
thereof.
You may hold your Notes through The Depository Trust Company in the United
States or Cedel Bank, societe anonyme or in the Euroclear System in Europe.
The Notes will be secured solely by the pool of automobile loans and the other
assets of the issuing trust which are described under the section entitled "The
Receivables Pool."
TERMS OF THE NOTES
- - - DISTRIBUTION DATES
The Trust will make payments of interest and principal on the Notes on the
fifteenth day of each month commencing December 15, 1998. This day is known as
the distribution date. If the fifteenth day of a given month is not a business
day, the Trust will make the payment on the next following business day.
Payments will be made to holders of record of the Notes as of the business day
preceding the distribution date.
- - - INTEREST
Interest on the Notes will accrue at the applicable interest rate from a
distribution date to the day before the next distribution date. In the case of
the first distribution date, interest begins to accrue on the day of the
closing.
Interest on the Notes will be calculated on the following basis:
<TABLE>
<CAPTION>
Class of Notes Calculation Method
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<S> <C>
Class A-1 Notes actual/360
Class A-2 Notes actual/360
Class A-3 Notes 30/360
Class A-4 Notes 30/360
</TABLE>
- - - PRINCIPAL
The principal of the Notes will be payable on the distribution date. The
noteholders' principal distributable amount is calculated as the sum of:
1. the portion of all collections on receivables (other than liquidated
receivables and purchased receivables) allocable to principal, including
full and partial principal prepayments, received during a monthly period,
2. the principal balance of each receivable that became a liquidated
receivable during the monthly period,
3. the principal balance of each receivable that was repurchased by
Arcadia Financial or the Servicer as of the last day of the monthly period,
and, at the option of Financial Security Assurance Inc., the principal
balance of each receivable that was required to be, but was not, so
repurchased,
4. the aggregate amount of any reduction of the principal balance of a
receivable as a result of a court order in an insolvency proceeding, and
5. any unpaid portion of the amounts included in 1, 2, 3 and 4 above with
respect to a prior distribution date.
Payments of principal on the Notes will be paid to the noteholders on each
distribution date as follows:
- The Class A-4 Notes will be a "pass-through" class of notes, which
will receive principal payments on all distributions and will generally
amortize as the automobile loan pool amortizes. The Class A-4 Notes will
initially comprise 50% of the Notes, and will be entitled to receive 50% of
the amount to be paid as principal to the noteholders on each distribution
date.
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- The Class A-1 Notes, Class A-2 Notes and Class A-3 Notes will be
"sequential pay" classes which collectively will receive 50% of the amount
to be paid as principal to the noteholders on each distribution date as
follows:
- first, the Class A-1 Notes will be paid off;
- once the Class A-1 Notes are paid off, the Class A-2 Notes will begin
to amortize, until they are paid off; and
- once the Class A-2 Notes are paid off, the Class A-3 Notes will begin
to amortize until they are paid off.
In addition, the outstanding principal amount of any class, to the extent not
previously paid, will be payable on the respective final scheduled distribution
date for such class.
- - - OPTIONAL REDEMPTION
The Class A-3 and Class A-4 Notes, if still outstanding, may be redeemed in
whole, but not in part, on any distribution date on which the Seller or the
Servicer exercises its "clean-up call" option to purchase the receivables. This
can only occur after the pool balance declines to 10% or less of its original
balance. The redemption price is equal to the unpaid principal amount of the
Notes of each such class plus accrued and unpaid interest thereon.
- - - MANDATORY REDEMPTION
IF PRE-FUNDING ACCOUNT IS NOT DEPLETED
Each class of Notes will be redeemed in part in the event that any portion of
the approximately $60,000,000 deposited in a segregated pre-funding account with
Norwest Bank Minnesota, N.A. remains on deposit in such account on January 15,
1999. If the amount to be redeemed is $100,000 or less, such amount will be
applied to the "sequential pay" Notes in accordance with their "sequential pay"
feature and not pro rata to each class of Notes, to reduce the outstanding
principal balance of the class of Notes then entitled to receive distributions
of principal. If the amount to be redeemed is greater than $100,000, the
aggregate principal amount of each class of Notes to be redeemed will be an
amount equal to such class's pro rata share (based on the respective current
principal amount of each class of Notes) of the amount remaining in such account
on January 15, 1999.
UPON EVENT OF DEFAULT
The Notes may be accelerated and subject to immediate payment at par upon the
occurrence of an event of default under the indenture. So long as Financial
Security Assurance Inc. is not in default, the power to declare an event of
default will be held by Financial Security Assurance Inc. In the case of such
an event of default, the Notes will automatically be accelerated and subject to
immediate payment at par. The note policy issued by Financial Security
Assurance Inc. does not guarantee payment of any amounts that become due on an
accelerated basis, unless Financial Security Assurance Inc. elects, in its sole
discretion, to pay such amounts in whole or in part.
OTHER MATTERS
PRE-FUNDING ACCOUNT
During the period from and including the closing date until the earliest of:
1. the determination date on which
(a) the prefunded amount is less than $100,000,
(b) an event of default has occurred under the Indenture or a servicer
termination event has occurred under the Sale and Servicing Agreement,
or
(c) certain events of insolvency have occurred with respect to the
Seller or the Servicer; or
2. the close of business on the January 1999 distribution date,
the pre-funded amount will be maintained as an account in the name of the
indenture trustee. This period of time is known as the "funding period."
The pre-funded amount is initially expected to equal approximately $60,000,000
and, during the funding period, will be reduced by the principal balance of
subsequent receivables purchased by the Trust in accordance with the sale and
servicing agreement. The Seller expects that the pre-funded amount will be
reduced to less than $100,000 by the January 1999 distribution date. Any
pre-funded amount remaining at the end of the funding period will be distributed
to each class of Notes pro rata in proportion to the principal balances of each
class of Notes.
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RESERVE ACCOUNT
During the funding period, funds will be held in a reserve account to cover any
shortfalls due to investment earnings on funds in the pre-funding account being
less than the interest due on a comparable principal amount of Notes.
COLLECTION ACCOUNT
Except under certain conditions, the Servicer will establish one or more
accounts in the name of the indenture trustee for the benefit of Noteholders.
All payments from obligors that are received on behalf of the Trust will be
deposited in the collection account no later than two business days after
receipt.
PRIORITY OF DISTRIBUTIONS
Pursuant to the sale and servicing agreement, the Indenture Trustee will, based
upon the information contained in a certificate provided by the Servicer, on
each distribution date, withdraw the available funds from the collection account
and apply the funds to the following (in the order of priority indicated):
1. to the Servicer, the amount the Servicer is entitled to be reimbursed
for prior monthly advances,
2. to the Owner Trustee and the Indenture Trustee, any accrued trustee
fees and any accrued fees of the separate lockbox bank, custodian, backup
servicer, collateral agent, indenture collateral agent or administrator (in
each case, to the extent such fees have not been previously paid by the
Servicer or Arcadia Financial),
3. to the Servicer, the servicing fee for the related monthly period and
any overdue servicing fees,
4. into the note distribution account, the amount of interest to be
distributed to noteholders,
5. into the note distribution account, the amount of principal to be
distributed to noteholders,
6. to Financial Security Assurance Inc., amounts owing and not paid to
Financial Security Assurance Inc., and
7. the remaining balance, if any, to a financial institution acting as
collateral agent on behalf of Financial Security Assurance Inc., the
indenture trustee (on behalf of the noteholders) and the trustees for other
trusts and warehousing facilities established by the Seller.
TAX STATUS
It is contemplated that for federal income tax purposes the Notes will be
characterized as debt and the Trust will not be characterized as an association
or a publicly traded partnership taxable as a corporation.
ERISA CONSIDERATIONS
Subject to certain considerations, it is contemplated that the Notes will be
eligible for purchase by employee benefit plans.
LEGAL INVESTMENTS
The Class A-1 Notes will be eligible securities for purchase by money market
funds under Rule 2a-7 under the Investment Company Act of 1940, as amended.
RATING OF THE NOTES
The Notes must receive at least the following ratings from Standard & Poor's, a
division of the McGraw-Hill Companies, Inc. and Moody's Investors Service, Inc.
in order to be issued:
<TABLE>
<CAPTION>
Class Rating
-------- ---------------------
S&P Moody's
-------- -----------
<S> <C> <C>
A-1 A-1+ P-1
A-2 AAA Aaa
A-3 AAA Aaa
A-4 AAA Aaa
</TABLE>
THE RECEIVABLES POOL
GENERAL
The receivables pool will include the following:
- initial receivables and all amounts due thereunder after the initial
cutoff date, and
- any subsequent receivables and all amounts due thereunder after the
applicable subsequent cutoff date.
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<PAGE>
All of the receivables are or will be retail installment sales contracts or
promissory notes purchased by Arcadia Financial from dealers who regularly
originate and sell these types of contracts or Notes to Arcadia Financial. The
initial receivables and the subsequent receivables are selected from Arcadia
Financial's portfolio for inclusion in the receivables pool in compliance with
several criteria, some of which are set forth below under the heading "Selection
Criteria." Arcadia Financial and the Seller believe that the selection
procedures are not adverse to noteholders and they believe that no adverse
selection procedures will be used in selecting the receivables.
The Trust will only be obligated to purchase the subsequent receivables on a
subsequent transfer date if the following criteria are met:
1. The weighted average annual percentage rate (APR) of such receivables
will not be lower than one percentage point below the weighted average APR
of the preliminary initial receivables on the preliminary cutoff date;
2. the weighted average remaining term of such receivables will not be
greater than 67 months nor less than 60 months;
3. not more than 90% of the aggregate principal balance of such
receivables will be attributable to loans for the purchase of used financed
vehicles;
4. not more than 70% of the aggregate principal balance of such
receivables will represent receivables originated under Arcadia Financial's
"Classic" program (excluding loans for the purchase of repossessed
automobiles that would otherwise be deemed originated under the "Classic"
program), and
5. not more than 3% of the aggregate principal balance of such receivables
will be attributable to receivables with an APR in excess of 21%.
The aggregate principal balance of the initial receivables is expected to be
approximately 70% of the aggregate initial principal balance of the Notes.
However, except for the criteria described above, there will be no required
characteristics of the subsequent receivables and the receivables included in
the initial receivables originated after the preliminary cutoff date.
Therefore, following the transfer of subsequent receivables to the Trust, the
aggregate characteristics of the entire receivables pool may vary from those of
the preliminary initial receivables.
DELINQUENCY, CREDIT LOSS AND REPOSSESSION INFORMATION
The following tables set forth information relating to Arcadia Financial's
delinquency, credit loss and repossession experience for each period indicated
with respect to all loans it has purchased and continues to service. This
information includes the experience with respect to all loans in Arcadia
Financial's portfolio of loans serviced during each period. This includes loans
which do not meet the criteria for selection as a receivable.
DELINQUENCY EXPERIENCE(1)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
At December 31,
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1995 1996 1997
------------------------- ------------------------- -------------------------
Number of Number of Number of
Loans Balances Loans Balances Loans Balances
----------- ----------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Servicing Portfolio at End of Period 185,241 $ 2,267,107 302,450 $ 3,791,857 411,429 $ 4,956,090
Delinquincies:
31-60 days 1,536 $ 17,667 3,884 $ 47,225 8,297 $ 100,161
61-90 days 520 5,694 1,255 15,877 3,635 45,485
91 days or more 614 6,881 2,911 37,019 3,019 34,047
------- ----------- ------- ----------- ------ -----------
Total Automobile Loans
Delinquent 31 or More Days 2,670 $ 30,242 8,050 $ 100,121 14,951 $ 179,693
------- ----------- ------- ----------- ------ -----------
------- ----------- ------- ----------- ------ -----------
Delinqincies as a Percentage
of Number of Loans and Amount
Outstanding at End of Period(2) 1.44% 1.33% 2.66% 2.64% 3.63% 3.63%
Amount in Reposession 1,489 $ 17,676 4,651 $ 64,929 6,083 $ 55,300
------- ----------- ------- ----------- ------ -----------
------- ----------- ------- ----------- ------ -----------
<CAPTION>
At September 30, 1998
-----------------------
Number of
Loans Balances
--------- -----------
<S> <C> <C>
Servicing Portfolio at End of Period 447,542 $ 5,137,798
Delinquincies:
31-60 days 9,820 $ 114,398
61-90 days 3662 43,666
91 days or more 4,363 51,440
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Total Automobile Loans
Delinquent 31 or More Days 17,845 $ 209,504
------- -----------
------- -----------
Delinqincies as a Percentage
of Number of Loans and Amount
Outstanding at End of Period(2) 3.99% 4.08%
Amount in Reposession 5,912 $ 35,739
------- -----------
------- -----------
</TABLE>
(1) All amounts and percentages are based on the principal amount scheduled to
be paid on each loan. The information in the table includes previously sold
loans which Arcadia Financial continues to service.
(2) Amounts shown do not include loans which are less than 31 days delinquent.
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<PAGE>
CREDIT LOSS AND REPOSSESSION EXPERIENCE(1)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Nine Months
Year Ended December 31, Ended
------------------------------------------ September 30,
1995 1996 1997 1998(4)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Average Servicing Portfolio Outstanding
During the Period . . . . . . . . . . . . . . . . . . $ 1,534,720 $ 3,015,411 $ 4,458,677 $ 5,062,745
Average Number of Loans Outstanding
During the Period . . . . . . . . . . . . . . . . . . 128,783 242,419 362,626 431,694
Number of Charge-Offs . . . . . . . . . . . . . . . . 5,020 14,403 24,616 25,399
Gross Charge-Offs(2) . . . . . . . . . . . . . . . . $ 11,247 $ 35,642 $ 165,233 $ 192,322
Recoveries (3) . . . . . . . . . . . . . . . . . . . 911 5,653 9,855 13,589
----------- ----------- ----------- -----------
Net Losses . . . . . . . . . . . . . . . . . . . . . $ 10,336 $ 29,989 $ 155,378 $ 178,733
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Gross Charge-Offs as a Percentage of Average
Servicing Portfolio . . . . . . . . . . . . . . . . 0.73% 1.18% 3.71% 5.07%
Net Losses as a Percentage of Average
Servicing Portfolio . . . . . . . . . . . . . . . . 0.67% 0.99% 3.48% 4.71%
</TABLE>
- - -----------------------
(1) All amounts and percentages are based on the principal amount scheduled to
be paid on each loan. The information in the table includes previously
sold loans which Arcadia Financial continues to service.
(2) Gross charge-offs represent principal amounts which management estimated to
be uncollectible after the consideration of anticipated proceeds from the
disposition of repossessed assets and selling expenses.
(3) Includes post-disposition amounts received on previously charged off loans.
(4) Percentage calculations for the nine months ended September 30, 1998 are
annualized.
The increase in the rate of delinquencies, gross charge-offs, net losses and
repossessions during 1996, experienced by both the Premier and Classic programs,
was primarily due to the following:
1. increased demands on Arcadia Financial's servicing and collection
resources as the result of rapid growth in its servicing portfolio and as a
result of continued expansion of the Classic loan program (which generally
requires greater collection efforts than the Premier program),
2. the performance of a discontinued earlier version of Arcadia
Financial's Classic product for first time automobile buyers and Arcadia
Financial's financed repossession program, which experienced significantly
higher delinquencies, repossessions and losses than Arcadia Financial's
other products and programs and
3. the continued seasoning of Arcadia Financial's servicing portfolio.
The significant rise in repossession inventory levels during 1996 was the result
of the growth in Arcadia Financial's servicing portfolio and increased
utilization of retail distribution channels to liquidate repossessed
automobiles.
The increase in delinquencies, gross charge-offs and net losses during 1997 was
primarily due to the continued seasoning of Arcadia Financial's existing
servicing portfolio to include a greater proportion of loans in the period of
highest probability for delinquencies and defaults (generally 6 to 14 months
from the date of origination), especially with respect to Arcadia Financial's
Premier loan portfolio. Much of the increase in performance statistics was due
to performance of loans originated in 1995 and the first half of 1996. As
expected, performance statistics also increased during 1997 as a result of a
rise in the proportion of Classic loans in Arcadia Financial's portfolio. At
December 31, 1997, the portfolio consisted of approximately 43% Classic loans
compared to 29% at December 31, 1996. Net losses during the year were further
affected by selling an increased proportion of repossessed vehicles through
wholesale auctions. During 1997, Arcadia Financial liquidated approximately 54%
of all repossessed vehicles sold through wholesale auctions compared to 30%
during 1996. Because recovery rates are generally lower on vehicles sold at
auction compared to those liquidated through retail channels, the increased
utilization of auctions has increased net losses experienced by Arcadia
Financial. Included in
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<PAGE>
the 1997 gross charge-off and net loss statistics is a special charge of
approximately $25 million resulting from a revision to Arcadia Financial's
inventory valuation policy, which requires Arcadia Financial to record all
repossessed vehicles at recovery rates that reflect expected values to be
achieved through wholesale auctions, regardless of the specific asset
disposition strategy to be employed.
The increase in the rate of delinquencies at September 30, 1998, compared with
December 31, 1997, reflects the continued rise in the proportion of Classic
loans in Arcadia Financial's servicing portfolio, which approximated 53% of
loans serviced at September 30, 1998, compared with 43% at December 31, 1997.
Repossessed inventory has decreased since December 31, 1997, primarily due to
Arcadia Financial's decision to increase its use of wholesale disposition
channels to liquidate repossessed vehicles thereby shortening the average number
of days a vehicle is in inventory. During the first nine months of 1998,
Arcadia Financial sold approximately 77% of its repossessed inventory through
wholesale channels compared with 48% in the same period in 1997, resulting in a
reduction in the average number of days vehicles are held in inventory to
approximately 64 days at September 30, 1998 compared with 105 days at
December 31, 1997.
Annualized gross charge-offs and net losses during the nine month period ended
September 30, 1998, include a charge of 0.57%. These numbers represent the
impact of a write-down of current inventory resulting from a revision to the
estimate of net realizable value and an additional provision primarily
associated with loans originated in connection with retail dispositions. The
remaining increase in gross charge-offs and net losses during the three and nine
months ended September 30, 1998, compared to the same periods a year ago
primarily reflects the continued rise in the proportion of Classic loans in
Arcadia Financial's servicing portfolio and the increase in the utilization of
wholesale disposition channels. Arcadia Financial announced that it is planning
to discontinue the sale of repossessed vehicles through retail disposition
channels and anticipates that it will be completely out of these operations by
the end of 1998. Arcadia Financial believes that its decision to discontinue
its retail remarketing operations will enable it to better manage its level of
repossessed inventory and improve the timing of excess cash flows released to it
from securitization trusts as a result of an increase in the speed at which
repossessed vehicles can be liquidated.
The loans in Arcadia Financial's servicing portfolio include loans other than
the receivables, including loans which do not meet the criteria for selection as
a receivable. There can be no assurance that the delinquency, loan loss or
repossession experience of the Trust with respect to the receivables will be
better than, worse than or comparable to the experience set forth above.
SELECTION CRITERIA
The preliminary initial receivables represent substantially all loans in Arcadia
Financial's portfolio, owned and not serviced for others, that
1. were not more than 30 days past due as of the preliminary cutoff date,
2. did not have a remaining principal balance as of the preliminary cutoff
date less than $500.00,
3. did not have a final scheduled payment date prior to February 1, 1999,
and
4. were otherwise eligible under criteria established by Arcadia Financial
and Financial Security Assurance Inc.
CERTAIN OTHER CHARACTERISTICS
The preliminary initial receivables
1. had a remaining maturity, as of the Preliminary Cutoff Date, of at
least 3 months, but not more than 84 months,
2. had an original maturity of at least 6 months, but not more than 84
months,
3. had an original principal balance of at least $4,062.00 and not more
than $39,491.20,
4. had a remaining principal balance, as of the Preliminary Cutoff Date,
of at least $502.35 and not more than $38,552.76, and
5. had an APR of at least 7.50% and not more than 23.00%.
Approximately 19.30% of the aggregate principal balance of the preliminary
initial receivables was attributable to loans for the purchase of new financed
vehicles, and approximately 80.70% of the aggregate
-7-
<PAGE>
principal balance was attributable to loans for the purchase of used financed
vehicles. The preliminary initial receivables were purchased from more than
3,000 dealers. Not more than 0.58% of the aggregate principal balance of the
preliminary initial receivables as of the preliminary cutoff date was originated
by any single dealer. The ten most significant dealers originated approximately
4.58% of the aggregate principal balance as of the preliminary cutoff
date.Approximately 99.42% of the preliminary initial receivables are simple
interest obligations, and interest on the remaining .58% of the preliminary
initial receivables is computed on an actuarial basis, with prepayment rebates
computed according to the Rule of 78's. Neither the Seller, Arcadia Financial
nor the Servicer may substitute other loans for the receivables at any time
during the term of the sale and servicing agreement. The composition and
distribution by APR and geographic concentration of the receivables pool as of
the preliminary cutoff date are set forth in the following tables:
COMPOSITION OF THE PRELIMINARY INITIAL RECEIVABLES
AS OF THE PRELIMINARY CUTOFF DATE
<TABLE>
<CAPTION>
Number of Average Weighted Average
Weighted Average Aggregate Principal Receivables Principal Weighted Average Original Scheduled
APR of Receivables Balance in Pool Balance Remaining Term (1) Term (1)
- - ------------------ ------------------- ----------- ------------ ------------------- ------------------
<S> <C> <C> <C> <C> <C>
16.505% $110,913,326.39 9,845 $ 11,265.95 60.8 months 66.7 months
</TABLE>
- - -------------------
(1) Based on scheduled payments due after the Preliminary Cutoff Date (in the
case of the Weighted Average Remaining Term) and assuming no prepayments on
the Preliminary Initial Receivables.
DISTRIBUTION BY APR OF THE PRELIMINARY INITIAL RECEIVABLES
AS OF THE PRELIMINARY CUTOFF DATE
<TABLE>
<CAPTION>
NUMBER OF AGGREGATE PERCENT OF AGGREGATE
APR RANGE (%) RECEIVABLES PRINCIPAL BALANCE PRINCIPAL BALANCE(1)
- - ------------- ----------- ----------------- --------------------
<S> <C> <C> <C>
7.50 to 7.99 . . . . . . . . 70 $ 211,305.31 0.19%
8.00 to 8.99 . . . . . . . . 303 1,221,023.84 1.10
9.00 to 9.99 . . . . . . . . 522 2,489,414.25 2.24
10.00 to 10.99 . . . . . . . 686 3,836,778.43 3.46
11.00 to 11.99 . . . . . . . 632 4,719,593.83 4.26
12.00 to 12.99 . . . . . . . 609 5,372,305.46 4.84
13.00 to 13.99 . . . . . . . 535 6,321,656.16 5.70
14.00 to 14.99 . . . . . . . 531 7,696,774.81 6.94
15.00 to 15.99 . . . . . . . 571 8,261,420.29 7.45
16.00 to 16.99 . . . . . . . 977 14,669,206.52 13.23
17.00 to 17.99 . . . . . . . 1324 18,356,594.52 16.55
18.00 to 18.99 . . . . . . . 1212 16,161,718.44 14.57
19.00 to 19.99 . . . . . . . 1079 13,377,467.57 12.06
20.00 to 20.99 . . . . . . . 543 5,740,169.39 5.18
21.00 to 21.99 . . . . . . . 196 1,959,951.34 1.77
22.00 to 23.99 . . . . . . . 55 517,946.23 0.47
----- ---------------- -------
9,845 $ 110,913,326.39 100.00%
----- ---------------- -------
----- ---------------- -------
</TABLE>
- - ----------------------
(1) The sum of the individual Aggregate Principal Balance percentages may not
total 100.00% due to rounding.
-8-
<PAGE>
GEOGRAPHIC CONCENTRATION OF THE PRELIMINARY INITIAL RECEIVABLES
AS OF THE PRELIMINARY CUTOFF DATE
<TABLE>
<CAPTION>
NUMBER OF AGGREGATE PERCENT OF AGGREGATE
STATE RECEIVABLES PRINCIPAL BALANCE PRINCIPAL BALANCE(1)
- - ----- ----------- ----------------- --------------------
<S> <C> <C> <C>
Texas. . . . . . . . . . . . 1,964 $ 21,135,309.83 19.06%
Florida. . . . . . . . . . . 896 9,011,953.89 8.13
California . . . . . . . . . 519 7,092,789.98 6.39
Georgia. . . . . . . . . . . 682 6,356,852.74 5.73
Colorado . . . . . . . . . . 565 5,697,772.81 5.14
South Carolina . . . . . . . 327 4,722,519.43 4.26
North Carolina . . . . . . . 291 4,124,065.77 3.72
Tennessee. . . . . . . . . . 302 4,069,827.89 3.67
Arizona. . . . . . . . . . . 483 3,970,231.32 3.58
Oklahoma . . . . . . . . . . 292 3,933,536.73 3.55
Oregon . . . . . . . . . . . 291 3,791,117.77 3.42
Washington . . . . . . . . . 360 3,220,764.80 2.90
Minnesota. . . . . . . . . . 378 2,715,235.73 2.45
New York . . . . . . . . . . 231 2,707,651.47 2.44
Missouri . . . . . . . . . . 193 2,355,280.07 2.12
Nevada . . . . . . . . . . . 155 2,312,987.04 2.09
Massachusetts. . . . . . . . 157 1,946,944.90 1.76
Connecticut. . . . . . . . . 148 1,807,890.10 1.63
Virginia . . . . . . . . . . 134 1,769,671.02 1.60
Kentucky . . . . . . . . . . 118 1,556,280.00 1.40
Michigan . . . . . . . . . . 108 1,298,687.76 1.17
Maryland . . . . . . . . . . 88 1,242,582.53 1.12
Utah . . . . . . . . . . . . 83 1,169,293.74 1.05
New Mexico . . . . . . . . . 87 1,150,577.82 1.04
Ohio . . . . . . . . . . . . 86 1,008.366.89 0.91
Wisconsin. . . . . . . . . . 82 966,022.72 0.87
Iowa . . . . . . . . . . . . 82 961,531.80 0.87
Nebraska . . . . . . . . . . 76 891,083.35 0.80
All other states . . . . . . 667 7,926,496.49 7.15
----- ----------------- -------
9,845 $110,913,326.39 100.00%
----- ----------------- -------
----- ----------------- -------
</TABLE>
- - ------------------
(1) The sum of the individual Aggregate Principal Balance percentages may not
total 100.00% due to rounding.
WEIGHTED AVERAGE LIFE OF THE SECURITIES
Prepayment on automotive receivables can be measured relative to a prepayment
standard or model. The model used in this Term Sheet, the Absolute Prepayment
Model, or ABS, represents an assumed rate of prepayment each month relative to
the original number of receivables in a pool of receivables. ABS further
assumes that all the receivables are the same size and amortize at the same rate
and that each receivable in each month of its life will either be paid as
scheduled or be prepaid in full. For example, in a pool of receivables
originally containing 10,000 receivables, a 1% ABS rate means that 100
receivables prepay each month. ABS does not purport to be an historical
description of prepayment experience or a prediction of the anticipated rate of
prepayment of any pool of receivables, including the receivables.
Because the rate of payment of principal of each class of Notes will depend on
the rate of payment (including prepayments) of the principal balance of the
receivables, final payment of any class of Notes could occur significantly
earlier than the respective final scheduled distribution dates. Reinvestment
risk associated with early payment of the Notes will be borne exclusively by the
noteholders.
The table below captioned "Percent of Initial Note Principal Amount at Various
ABS Percentages" has been prepared on the basis of the characteristics of the
receivables. The table assumes that
1. the receivables prepay in full at the specified constant percentage of
ABS monthly, with no defaults, losses or repurchases,
2. each scheduled monthly payment on the receivables is made on the last
day of each month and each month has 30 days,
3. payments on the Notes are made on each distribution date (and each
distribution date is assumed to be the fifteenth day of each applicable
month), and
-9-
<PAGE>
4. the Servicer does not exercise its option to purchase the receivables.
Pool 1 has been modeled with a cutoff date of October 29, 1998, and Pool 2 is
assumed to be delivered one month later. The table indicates the projected
weighted average life of each class of Notes and sets forth the percent of the
initial principal amount of each class of Notes that is projected to be
outstanding after each of the distribution dates shown at various constant ABS
percentages. The table also indicates the month in which the Servicer can
exercise its optional clean-up call and the associated weighted average life.
The table also assumes that the receivables have been aggregated into
hypothetical pools with all of the receivables within each pool having the
following characteristics and that the level scheduled monthly payment for each
of the pools (which is based on its aggregate principal balance, APR, original
term to maturity and remaining term to maturity as of the cutoff date) will be
such that each pool will be fully amortized by the end of its remaining term to
maturity.
<TABLE>
<CAPTION>
ORIGINAL TERM REMAINING TERM
AGGREGATE TO MATURITY TO MATURITY
POOL PRINCIPAL BALANCE APR (IN MONTHS) (IN MONTHS)
----- . ----------------- ------ ------------- --------------
<S> <C> <C> <C> <C>
1 . . . . . . . .$ 140,000,000 16.50% 67 61
2 . . . . . . . .$ 60,000,000 16.50% 67 67
</TABLE>
The actual characteristics and performance of the receivables will differ from
the assumptions used in constructing the table. The assumptions used are
hypothetical and have been provided only to give a general sense of how the
principal cash flows might behave under varying prepayment scenarios. For
example, it is unlikely that the receivables will prepay at a constant level of
ABS until maturity or that all of the receivables will prepay at the same level
of ABS. Moreover, the diverse terms of receivables within each of the
hypothetical pools could produce slower or faster principal distributions than
indicated in the table at the various constant percentages of ABS specified,
even if the original and remaining terms to maturity of the receivables are as
assumed. Any difference between such assumptions and the actual characteristics
and performance of the receivables, or actual prepayment experience, will affect
the percentages of initial amounts outstanding over time and the weighted
average lives of each class of Notes.
-10-
<PAGE>
PERCENT OF INITIAL NOTE PRINCIPAL AMOUNT
AT VARIOUS ABS PERCENTAGES
<TABLE>
<CAPTION>
DISTRIBUTION DATE CLASS A-1 NOTES CLASS A-2 NOTES
----------------------- --------------------------------------------- ---------------------------------------------
0.00% 1.00% 1.60% 2.00% 0.00% 1.00% 1.60% 2.00%
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Closing Date . . . . . 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000
12/15/98 . . . . . . . 94.306 88.638 84.876 82.198 100.000 100.000 100.000 100.000
01/15/99 . . . . . . . 86.414 72.915 64.101 57.886 100.000 100.000 100.000 100.000
02/15/99 . . . . . . . 78.413 57.251 43.494 33.820 100.000 100.000 100.000 100.000
03/15/99 . . . . . . . 70.302 41.648 23.059 10.005 100.000 100.000 100.000 100.000
04/15/99 . . . . . . . 62.080 26.110 2.803 0.000 100.000 100.000 100.000 94.494
05/15/99 . . . . . . . 53.744 10.638 0.000 0.000 100.000 100.000 92.983 85.031
06/15/99 . . . . . . . 45.294 0.000 0.000 0.000 100.000 98.063 84.903 75.676
07/15/99 . . . . . . . 36.728 0.000 0.000 0.000 100.000 91.834 76.901 66.434
08/15/99 . . . . . . . 28.044 0.000 0.000 0.000 100.000 85.634 68.978 57.306
09/15/99 . . . . . . . 19.241 0.000 0.000 0.000 100.000 79.464 61.136 48.295
10/15/99 . . . . . . . 10.316 0.000 0.000 0.000 100.000 73.325 53.378 39.404
11/15/99 . . . . . . . 1.269 0.000 0.000 0.000 100.000 67.219 45.705 30.635
12/15/99 . . . . . . . 0.000 0.000 0.000 0.000 96.790 61.145 38.119 21.992
01/15/00 . . . . . . . 0.000 0.000 0.000 0.000 93.012 55.106 30.622 13.477
02/15/00 . . . . . . . 0.000 0.000 0.000 0.000 89.183 49.102 23.218 5.093
03/15/00 . . . . . . . 0.000 0.000 0.000 0.000 85.301 43.134 15.906 0.000
04/15/00 . . . . . . . 0.000 0.000 0.000 0.000 81.366 37.203 8.691 0.000
05/15/00 . . . . . . . 0.000 0.000 0.000 0.000 77.377 31.311 1.574 0.000
06/15/00 . . . . . . . 0.000 0.000 0.000 0.000 73.333 25.458 0.000 0.000
07/15/00 . . . . . . . 0.000 0.000 0.000 0.000 69.233 19.645 0.000 0.000
08/15/00 . . . . . . . 0.000 0.000 0.000 0.000 65.077 13.875 0.000 0.000
09/15/00 . . . . . . . 0.000 0.000 0.000 0.000 60.864 8.147 0.000 0.000
10/15/00 . . . . . . . 0.000 0.000 0.000 0.000 56.593 2.463 0.000 0.000
11/15/00 . . . . . . . 0.000 0.000 0.000 0.000 52.263 0.000 0.000 0.000
12/15/00 . . . . . . . 0.000 0.000 0.000 0.000 47.873 0.000 0.000 0.000
01/15/01 . . . . . . . 0.000 0.000 0.000 0.000 43.424 0.000 0.000 0.000
02/15/01 . . . . . . . 0.000 0.000 0.000 0.000 38.913 0.000 0.000 0.000
03/15/01 . . . . . . . 0.000 0.000 0.000 0.000 34.340 0.000 0.000 0.000
04/15/01 . . . . . . . 0.000 0.000 0.000 0.000 29.704 0.000 0.000 0.000
05/15/01 . . . . . . . 0.000 0.000 0.000 0.000 25.004 0.000 0.000 0.000
06/15/01 . . . . . . . 0.000 0.000 0.000 0.000 20.240 0.000 0.000 0.000
07/15/01 . . . . . . . 0.000 0.000 0.000 0.000 15.410 0.000 0.000 0.000
08/15/01 . . . . . . . 0.000 0.000 0.000 0.000 10.514 0.000 0.000 0.000
09/15/01 . . . . . . . 0.000 0.000 0.000 0.000 5.551 0.000 0.000 0.000
10/15/01 . . . . . . . 0.000 0.000 0.000 0.000 0.519 0.000 0.000 0.000
11/15/01 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
12/15/01 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
01/15/02 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
02/15/02 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
03/15/02 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
04/15/02 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
05/15/02 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
06/15/02 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
07/15/02 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
08/15/02 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
09/15/02 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
10/15/02 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
11/15/02 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
12/15/02 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
01/15/03 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
02/15/03 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
03/15/03 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
04/15/03 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
05/15/03 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
06/15/03 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
07/15/03 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
08/15/03 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
09/15/03 . . . . . . . 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
-------------------------------------------------------------------------------------------------------------------------------
Weighted Average Life (years)(1) 0.561 0.320 0.254 0.226 2.049 1.274 0.991 0.854
</TABLE>
- - ---------------------------
(1) The weighted average life of a Note is determined by (i) multiplying
the amount of each principal payment on a Note by the number of years from the
date of the issuance of the Note to the related Distribution Date, (ii) adding
the results and (iii) dividing the sum by the related initial principal amount
of the Note.
THIS TABLE HAS BEEN PREPARED BASED ON THE ASSUMPTIONS DESCRIBED ABOVE
(INCLUDING THE ASSUMPTIONS REGARDING THE CHARACTERISTICS AND PERFORMANCE OF THE
RECEIVABLES WHICH WILL DIFFER FROM THE ACTUAL CHARACTERISTICS AND PERFORMANCE
THEREOF) AND SHOULD BE READ IN CONJUNCTION THEREWITH.
-11-
<PAGE>
PERCENT OF INITIAL NOTE PRINCIPAL AMOUNT
AT VARIOUS ABS PERCENTAGES
<TABLE>
<CAPTION>
DISTRIBUTION DATE CLASS A-3 NOTES CLASS A-4 NOTES
----------------------- --------------------------------------------- ---------------------------------------------
0.00% 1.00% 1.60% 2.00% 0.00% 1.00% 1.60% 2.00%
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Closing Date . . . . . 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000
12/15/98 . . . . . . . 100.000 100.000 100.000 100.000 99.260 98.523 98.034 97.686
01/15/99 . . . . . . . 100.000 100.000 100.000 100.000 98.234 96.479 95.333 94.525
02/15/99 . . . . . . . 100.000 100.000 100.000 100.000 97.194 94.443 92.654 91.397
03/15/99 . . . . . . . 100.000 100.000 100.000 100.000 96.139 92.414 89.998 88.301
04/15/99 . . . . . . . 100.000 100.000 100.000 100.000 95.070 90.394 87.364 85.238
05/15/99 . . . . . . . 100.000 100.000 100.000 100.000 93.987 88.383 84.755 82.210
06/15/99 . . . . . . . 100.000 100.000 100.000 100.000 92.888 86.380 82.169 79.216
07/15/99 . . . . . . . 100.000 100.000 100.000 100.000 91.775 84.387 79.608 76.259
08/15/99 . . . . . . . 100.000 100.000 100.000 100.000 90.646 82.403 77.073 73.338
09/15/99 . . . . . . . 100.000 100.000 100.000 100.000 89.501 80.428 74.564 70.454
10/15/99 . . . . . . . 100.000 100.000 100.000 100.000 88.341 78.464 72.081 67.609
11/15/99 . . . . . . . 100.000 100.000 100.000 100.000 87.165 76.510 69.625 64.803
12/15/99 . . . . . . . 100.000 100.000 100.000 100.000 85.973 74.566 67.198 62.037
01/15/00 . . . . . . . 100.000 100.000 100.000 100.000 84.764 72.634 64.799 59.313
02/15/00 . . . . . . . 100.000 100.000 100.000 100.000 83.539 70.713 62.430 56.630
03/15/00 . . . . . . . 100.000 100.000 100.000 98.163 82.296 68.803 60.090 53.990
04/15/00 . . . . . . . 100.000 100.000 100.000 93.443 81.037 66.905 57.781 51.393
05/15/00 . . . . . . . 100.000 100.000 100.000 88.804 79.761 65.019 55.504 48.842
06/15/00 . . . . . . . 100.000 100.000 96.833 84.248 78.467 63.147 53.258 46.337
07/15/00 . . . . . . . 100.000 100.000 92.811 79.778 77.155 61.287 51.046 43.878
08/15/00 . . . . . . . 100.000 100.000 88.849 75.395 75.825 59.440 48.867 41.467
09/15/00 . . . . . . . 100.000 100.000 84.951 71.101 74.476 57.607 46.723 39.106
10/15/00 . . . . . . . 100.000 100.000 81.116 66.898 73.110 55.788 44.614 36.794
11/15/00 . . . . . . . 100.000 98.152 77.347 62.788 71.724 53.984 42.541 34.533
12/15/00 . . . . . . . 100.000 94.899 73.644 58.773 70.319 52.194 40.504 32.325
01/15/01 . . . . . . . 100.000 91.673 70.011 54.855 68,896 50.420 38.506 30.170
02/15/01 . . . . . . . 100.000 88.476 66.447 51.036 67.452 48.662 36.546 28.070
03/15/01 . . . . . . . 100.000 85.308 62.955 47.319 65.989 46.920 34.625 26.026
04/15/01 . . . . . . . 100.000 82.171 59.537 43.706 64.505 45.194 32.745 24.038
05/15/01 . . . . . . . 100.000 79.064 56.193 40.198 63.001 43.485 30.906 22.109
06/15/01 . . . . . . . 100.000 75.989 52.926 36.798 61.477 41.794 29.109 20.239
07/15/01 . . . . . . . 100.000 72.946 49.737 33.509 59.931 40.120 27.356 18.430
08/15/01 . . . . . . . 100.000 69.937 46.629 30.332 58.365 38.466 25.646 16.683
09/15/01 . . . . . . . 100.000 66.963 43.602 27.271 56.776 36.829 23.981 14.999
10/15/01 . . . . . . . 100.000 64.023 40.659 24.327 55.166 35.213 22.363 13.380
11/15/01 . . . . . . . 97.334 61.120 37.802 21.504 53.534 33.616 20.791 11.827
12/15/01 . . . . . . . 94.325 58.253 35.032 18.803 51.879 32.039 19.267 10.342
01/15/02 . . . . . . . 91.276 55.425 32.351 0.000 50.202 30.484 17.793 0.000
02/15/02 . . . . . . . 88.184 52.635 29.761 0.000 48.501 28.949 16.369 0.000
03/15/02 . . . . . . . 85.049 49.885 27.265 0.000 46.777 27.437 14.996 0.000
04/15/02 . . . . . . . 81.872 47.177 24.864 0.000 45.029 25.947 13.675 0.000
05/15/02 . . . . . . . 78.650 44.510 22.560 0.000 43.258 24.480 12.408 0.000
06/15/02 . . . . . . . 75.385 41.886 20.356 0.000 41.462 23.037 11.196 0.000
07/15/02 . . . . . . . 72.075 39.306 18.254 0.000 39.641 21.618 10.039 0.000
08/15/02 . . . . . . . 68.719 36.771 0.000 0.000 37.795 20.224 0.000 0.000
09/15/02 . . . . . . . 65.317 34.283 0.000 0.000 35.924 18.855 0.000 0.000
10/15/02 . . . . . . . 61.868 31.841 0.000 0.000 34.027 17.513 0.000 0.000
11/15/02 . . . . . . . 58.371 29.448 0.000 0.000 32.104 16.197 0.000 0.000
12/15/02 . . . . . . . 54.827 27.105 0.000 0.000 30.155 14.908 0.000 0.000
01/15/03 . . . . . . . 51.234 24.813 0.000 0.000 28.179 13.647 0.000 0.000
02/15/03 . . . . . . . 47.592 22.573 0.000 0.000 26.175 12.415 0.000 0.000
03/15/03 . . . . . . . 43.899 20.386 0.000 0.000 24.144 11.212 0.000 0.000
04/15/03 . . . . . . . 40.156 18.253 0.000 0.000 22.086 10.039 0.000 0.000
05/15/03 . . . . . . . 36.361 0.000 0.000 0.000 19.998 0.000 0.000 0.000
06/15/03 . . . . . . . 32.514 0.000 0.000 0.000 17.883 0.000 0.000 0.000
07/15/03 . . . . . . . 28.614 0.000 0.000 0.000 15.738 0.000 0.000 0.000
08/15/03 . . . . . . . 24.660 0.000 0.000 0.000 13.563 0.000 0.000 0.000
09/15/03 . . . . . . . 20.653 0.000 0.000 0.000 11.359 0.000 0.000 0.000
-------------------------------------------------------------------------------------------------------------------------------
Weighted Average Life (years)(1) 4.155 3.377 2.733 2.330 3.014 2.306 1.853 1.584
</TABLE>
- - --------------------
(1) The weighted average life of a Note is determined by (i) multiplying
the amount of each principal payment on a Note by the number of years from the
date of the issuance of the Note to the related Distribution Date, (ii) adding
the results and (iii) dividing the sum by the related initial principal amount
of the Note.
THIS TABLE HAS BEEN PREPARED BASED ON THE ASSUMPTIONS DESCRIBED ABOVE
(INCLUDING THE ASSUMPTIONS REGARDING THE CHARACTERISTICS AND PERFORMANCE OF THE
RECEIVABLES WHICH WILL DIFFER FROM THE ACTUAL CHARACTERISTICS AND PERFORMANCE
THEREOF) AND SHOULD BE READ IN CONJUNCTION THEREWITH.
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