<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): March 1, 1999
ARCADIA RECEIVABLES FINANCE CORP.
as originator of
ARCADIA AUTOMOBILE RECEIVABLES TRUST, 1999-A
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 333-48141 41-1743653
- - -------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS employer
of incorporation) file number) identification No.)
7825 Washington Avenue South, Suite 410, Minneapolis, Minnesota 55439-2435
- - -------------------------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (612) 942-9880
------------------
--------------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
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 March 1, 1999, 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 $550,000,000 aggregate principal
amount of asset-backed notes by Arcadia Automobile Receivables
Trust, 1999-A. 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 March 1, 1999 of Arcadia
Automobile Receivables Trust, 1999-A
<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: March 3, 1999 ARCADIA RECEIVABLES FINANCE CORP.,
as originator of Arcadia Automobile
Receivables Trust, 1999-A
By: /s/ Brian S. Anderson
------------------------------------
Brian S. Anderson
Senior Vice President
<PAGE>
SUBJECT TO REVISION
TERM SHEET DATED MARCH 1, 1999
$550,000,000 AUTOMOBILE RECEIVABLES-BACKED NOTES
ARCADIA AUTOMOBILE RECEIVABLES TRUST, 1999-A
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, 1999-A. 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
Chase Securities Inc.
Credit Suisse First Boston
J. P. Morgan & Co.
NationsBanc Montgomery Securities LLC
<PAGE>
ARCADIA AUTOMOBILE RECEIVABLES TRUST, 1999-A
TERM SHEET
SUBJECT TO REVISION
PARTIES
THE TRUST
Arcadia Automobile Receivables Trust, 1999-A 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 note policy is not covered by the Property/Casualty Insurance Security Fund
specified in Article 76 of the New York Insurance Law.
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
February 23, 1999. This is the date used for preparing the statistical
information used in this Term Sheet.
INITIAL CUTOFF DATE
On or about March 5, 1999. 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 Trust will own a pool of 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 $385,000,000 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 May
1999 that are expected to have an aggregate principal balance of approximately
$165,000,000.
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
-1-
<PAGE>
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 scheduled to be made are also set forth
in the following table.
<TABLE>
<CAPTION>
Final
Initial Note Scheduled
Principal Distribution
Class Balance Date
- - ------------- ----------------- ------------------
<S> <C> <C>
A-1 $60,000,000 March 15, 2000
A-2 $202,700,000 July 15, 2002
A-3 $125,000,000 August 15, 2003
A-4 $162,300,000 December 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 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 April 15, 1999. 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
------------------ -------------------
<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 the automobile loans 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 Seller 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 (because of insufficient available
cash).
Payments of principal on the Notes will be allocated among the classes as
follows:
The Notes will be "sequential pay" classes which will receive principal on
each distribution date as follows:
- to the Class A-1 Notes until the Class A-1 Notes are 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;
-2-
<PAGE>
- once the Class A-2 Notes are paid off, the Class A-3 Notes will begin
to amortize until they are paid off; and
- once the Class A-3 Notes are paid off, the Class A-4 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 such class's final scheduled distribution
date.
- - - OPTIONAL REDEMPTION
The 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 $165,000,000 deposited in a segregated pre-funding account
with the Indenture Trustee remains on deposit in such account on May 17, 1999.
If the amount to be redeemed is $100,000 or less, the Indenture Trustee will pay
such amount to the 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 Indenture Trustee will
use the money to redeem each class of Notes in an amount equal to such class's
pro rata share (based on the respective current principal amount of each class
of Notes) of the redemption amount. If the redemption amount is greater than
$100,000, a redemption premium will also be payable.
UPON EVENT OF DEFAULT
If an event of default under the indenture occurs, the Notes may be accelerated
and subject to immediate payment at par. Only Financial Security Assurance Inc.
can declare an event of default, except in unusual circumstances. 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. However, following an acceleration of the Notes, the note policy will
continue to cover payments of principal and interest in accordance with its
terms.
OTHER MATTERS
PRE-FUNDING ACCOUNT
Contingent upon the written consent of Financial Security Assurance Inc. and the
satisfaction of certain other conditions, the Seller will sell additional
automobile loans to the Trust during a period beginning on the date of closing
and ending not later than May 17, 1999. This period of time is known as the
"funding period." The pre-funded amount will be maintained as an account in the
name of the Indenture Trustee.
The pre-funded amount is initially expected to equal approximately $165,000,000
and, during the funding period, will be reduced by the principal balance of
subsequent receivables purchased by the Trust. The Seller expects that the
pre-funded amount will be reduced to less than $100,000 by the May 1999
distribution date. Any pre-funded amount remaining at the end of the funding
period will be distributed in the manner described under "Mandatory Redemption"
above. Prior to being used to purchase subsequent receivables or paid to
noteholders, the pre-funded amount will be invested from time to time in
eligible investments.
RESERVE ACCOUNT
So long as there is money in the pre-funding account, funds will be held in a
reserve account. The money held in the pre-funding account probably will
generate less interest than the amount of interest due on the same amount of
Notes, and the interest paid on the automobile loans owned by the Trust may not
be enough to make up the difference. As a result, the Indenture Trustee will
establish a reserve account, and will use funds deposited there to cover any
such shortfall.
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.
-3-
<PAGE>
PRIORITY OF DISTRIBUTIONS
On each distribution date, the Indenture Trustee will 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 unpaid trustee fees
and other similar fees,
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 paid
on the Notes,
5. into the note distribution account, the amount of principal to be paid
on the Notes,
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>
Rating
-----------------------------------------
Class 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>
You must not assume that the ratings initially assigned to the Notes will not
subsequently be lowered or withdrawn by the rating agencies.
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.
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 will be selected from
automobile loans in 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
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;
-4-
<PAGE>
2. the weighted average remaining term of such receivables will not be
greater than 68 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; and
4. not more than 4% 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,
--------------------------------------------------------------------------------
1996 1997 1998
------------------------ --------------------- ------------------------
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 302,450 $ 3,791,857 411,429 $ 4,956,090 450,635 $ 5,096,222
Delinquencies:
31-60 days 3,884 $ 47,225 8,297 $ 100,161 12,176 $ 135,633
61-90 days 1,255 15,877 3,635 45,485 4,161 47,599
91 days or more 2,911 37,019 3,019 34,047 5,165 60,591
---------- ----------- -------- ----------- --------- -----------
Total Automobile Loans
Delinquent 31 or More Days 8,050 $ 100,121 14,951 $ 179,693 21,502 $ 243,823
---------- ----------- -------- ----------- --------- -----------
---------- ----------- -------- ----------- --------- -----------
Delinquencies as a Percentage
of Number of Loans and Amount
Outstanding at End of Period(2) 2.66% 2.64% 3.63% 3.63% 4.77% 4.78%
Amount in Repossession 4,651 $ 64,929 6,083 $ 55,300 5,686 $ 32,676
---------- ----------- -------- ----------- --------- -----------
---------- ----------- -------- ----------- --------- -----------
</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.
-5-
<PAGE>
CREDIT LOSS AND REPOSSESSION EXPERIENCE(1)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Year Ended December 31
------------------------------------
1996 1997 1998
---------- ---------- ----------
<S> <C> <C> <C>
Average Servicing Portfolio
Outstanding During the Period........ $3,015,411 $4,458,677 $5,071,996
Average Number of Loans Outstanding
During the Period.................... 242,419 362,626 435,712
Number of Charge-Offs................ 14,403 24,616 33,441
Gross Charge-Offs(2)................. $ 35,642 $ 165,233 255,853
Recoveries (3)....................... 5,653 9,855 21,614
---------- ---------- ---------
Net Losses........................... $ 29,989 $ 155,378 234,239
---------- ---------- ---------
---------- ---------- ---------
Gross Charge-Offs as a Percentage of
Average Servicing Portfolio.......... 1.18% 3.71% 5.04%
Net Losses as a Percentage of Average
Servicing Portfolio............. 0.99% 3.48% 4.62%
</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.
As illustrated in the tables above, Arcadia Financial has experienced an
increase in delinquency, gross charge-off and net loss rates during each of the
three years in the period ended December 31, 1998. Management believes that
these increases are primarily due to changes in Arcadia Financial's portfolio
mix such that it included a larger proportion of loans with higher credit risk
characteristics, as well as 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 six to
14 months from the date of origination). To compensate for the expected
increases in credit statistics resulting from the rise in the proportion of
loans with higher credit risk characteristics, Arcadia Financial implemented a
risk-based pricing strategy during 1997 to improve the rate of return on loan
originations, increased its allowance for credit losses to 8.15% at December 31,
1998 from 4.75% and 2.51% at December 31, 1997 and 1996, respectively, tightened
its credit and underwriting standards, and expanded its use of computerized
credit scoring and behavioral analytics to better service its portfolio and
identify improvements when necessary. As a result of these analytic
enhancements, management has discontinued the purchase of loans which score
within certain risk tiers as the rate of return historically realized on these
loans has not been commensurate with the related risk. Loans included in these
discontinued tiers represented approximately 16% of Arcadia Financial's
servicing portfolio at December 31, 1998 and accounted for approximately 26% of
the delinquent loans outstanding at such date and 34% of net losses incurred
during 1998.
Net losses were also affected during 1997 and 1998 by changes in Arcadia
Financial's repossession disposition strategy. Beginning in March 1997,
management modified its strategy to increase the utilization of wholesale
disposition channels and made further modifications in June 1998 to discontinue
its retail remarketing operations in its entirety. As a result, the percentage
of repossessed vehicles liquidated through wholesale liquidation channels
increased from 30% in 1996 to 54% in 1997 and 81% in 1998. Although recovery
rates on the sale of vehicles through wholesale channels is generally lower than
those realized through retail distribution channels, management believes that
its decision to discontinue its retail remarketing operations enable it to
better manage its level of repossessed inventory and improve the timing of
excess cash flows released to Arcadia Financial from securitization trusts as a
result of an increase in the speed at which repossessed vehicles can be
liquidated. At December 31, 1998, the average days that vehicles were held in
inventory had fallen to approximately 46 days compared to 105 days at December
31, 1997 and 119 days at December 31, 1996. The change in the number and net
realizable value of repossessed vehicles at December 31, 1998, reflects the
improvement in the average number of days in inventory and the lower anticipated
recovery rates resulting from the change in Arcadia Financial's liquidation
strategy.
-6-
<PAGE>
Annualized gross charge-offs and net losses during 1998 and 1997 include
non-recurring charges of 0.42% and 0.57%, respectively, primarily due to the
impact of write-downs of repossessed inventory due to revisions to Arcadia
Financial's inventory valuation policy.
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 June 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 6 months, but not more than 84 months,
2. had an original maturity of at least 12 months, but not more than 84
months,
3. had an original principal balance of at least $3,129.00 and not more
than $49,772.31,
4. had a remaining principal balance, as of the Preliminary Cutoff Date,
of at least $554.48 and not more than $49,772.31, and
5. had an APR of at least 7.50% and not more than 23.99%.
Approximately 13.32% of the aggregate principal balance of the preliminary
initial receivables was attributable to loans for the purchase of new financed
vehicles, and approximately 86.68% of the aggregate principal balance was
attributable to loans for the purchase of used financed vehicles. The
preliminary initial receivables were purchased from more than 4,000 dealers.
Not more than 0.52% 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 3.60%
of the aggregate principal balance as of the preliminary cutoff date.
Approximately 99.61% of the preliminary initial receivables are simple interest
obligations, and interest on the remaining 0.39% 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 APR Aggregate Principal Receivables Principal Weighted Average Original Scheduled
of Receivables Balance in Pool Balance Remaining Term (1) Term (1)
- - ---------------------- ------------------- ------------- --------------- ------------------ -------------------
<S> <C> <C> <C> <C>
17.29% $311,971,798.83 22,062 $ 14,140.69 66.32 months 66.65 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.
-7-
<PAGE>
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 . . . . . . . . . 12 $174,473.17 .06%
8.00 to 8.99 . . . . . . . . . 64 989,955.13 0.32%
9.00 to 9.99 . . . . . . . . . 93 1,513,079.29 0.49%
10.00 to 10.99 . . . . . . . . 200 3,144,375.28 1.01%
11.00 to 11.99 . . . . . . . . 402 6,725,853.54 2.16%
12.00 to 12.99 . . . . . . . . 667 10,963,312.12 3.51%
13.00 to 13.99 . . . . . . . . 950 16,065,968.79 5.15%
14.00 to 14.99 . . . . . . . . 1,242 20,564,959.89 6.59%
15.00 to 15.99 . . . . . . . . 1,606 25,071,180.11 8.04%
16.00 to 16.99 . . . . . . . . 2,722 42,126,579.26 13.50%
17.00 to 17.99 . . . . . . . . 4,183 60,937,370.63 19.53%
18.00 to 18.99 . . . . . . . . 3,788 52,053,333.23 16.69%
19.00 to 19.99 . . . . . . . . 2,888 36,192,923.66 1.60%
20.00 to 20.99 . . . . . . . . 2,170 24,540,789.44 7.87%
21.00 to 21.99 . . . . . . . . 715 7,371,193.21 2.36%
22.00 to 22.99 . . . . . . . . 244 2,402,424.01 0.77%
23.00 to 30.00 . . . . . . . . 116 1,134,028.07 0.36%
------ --------------- ------
22,062 $311,971,798.83 100.00%
------ --------------- ------
------ --------------- ------
</TABLE>
- - ------------------
(1) The sum of the individual Aggregate Principal Balance percentages may not
total 100.00% due to rounding.
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. . . . . . . . . . . . . 3,851 $59,302,998.73 19.01%
California . . . . . . . . . . 1,551 22,968,000.82 7.36%
Florida. . . . . . . . . . . . 1,301 18,584,809.20 5.96%
Georgia. . . . . . . . . . . . 1,220 17,929,092.52 5.75%
Tennessee. . . . . . . . . . . 1,019 14,035,021.93 4.50%
South Carolina . . . . . . . . 989 13,816,823.41 4.43%
North Carolina . . . . . . . . 860 12,714,642.82 4.08%
Oklahoma . . . . . . . . . . . 908 12,648,938.15 4.05%
Oregon . . . . . . . . . . . . 765 10,363,687.69 3.32%
Colorado . . . . . . . . . . . 709 10,070,123.35 3.23%
Arizona. . . . . . . . . . . . 588 8,958,462.09 2.87%
Missouri . . . . . . . . . . . 654 8,715,187.59 2.79%
Washington . . . . . . . . . . 623 8,274,900.30 2.65%
Massachusetts. . . . . . . . . 603 7,480,822.36 2.40%
New York . . . . . . . . . . . 552 6,757,625.47 2.17%
Virginia . . . . . . . . . . . 381 5,607,903.50 1.80%
Nevada . . . . . . . . . . . . 348 5,508,630.13 1.77%
Kentucky . . . . . . . . . . . 386 5,120,812.18 1.64%
Connecticut. . . . . . . . . . 377 4,927,771.12 1.58%
Minnesota. . . . . . . . . . . 381 4,899,441.67 1.57%
Illinois . . . . . . . . . . . 336 4,505,348.55 1.44%
Ohio . . . . . . . . . . . . . 341 4,394,652.27 1.41%
New Mexico . . . . . . . . . . 256 3,855,351.28 1.24%
Utah . . . . . . . . . . . . . 277 3,766,348.94 1.21%
Nebraska . . . . . . . . . . . 261 3,327,371.23 1.07%
Maryland . . . . . . . . . . . 217 3,235,992,73 1.04%
Wisconsin. . . . . . . . . . . 263 3,211,925.19 1.03%
All other states(2). . . . . . 2,045 26,989,113.61 8.65%
------ --------------- ------
TOTAL. . . . . . . . . . . . . 22,062 $311,971,798.83 100.00%
------ --------------- ------
------ --------------- ------
</TABLE>
- - ---------------
(1) The sum of the individual Aggregate Principal Balance percentages may not
total 100.00% due to rounding.
(2) No other state comprised more than 1.00% of the Total Aggregate Principal
Balance.
-8-
<PAGE>
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
4. the Servicer does not exercise its option to purchase the receivables.
Pool 1 has been modeled with a cutoff date of March 5, 1999, 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 $385,000,000 17.29 67 66
2 $165,000,000 17.29 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.
-9-
<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% 1.20% 1.60% 2.00% 0.00% 1.20% 1.60% 2.00%
-------- ------- ------- -------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Closing Date 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
04/15/99 94.11 86.39 83.78 81.14 100.00 100.00 100.00 100.00
05/15/99 85.68 67.11 60.84 54.52 100.00 100.00 100.00 100.00
06/15/99 77.12 47.91 38.05 28.13 100.00 100.00 100.00 100.00
07/15/99 68.44 28.81 15.43 1.97 100.00 100.00 100.00 100.00
08/15/99 59.63 9.79 0.00 0.00 100.00 100.00 97.92 92.91
09/15/99 50.70 0.00 0.00 0.00 100.00 97.30 91.32 85.31
10/15/99 41.64 0.00 0.00 0.00 100.00 91.73 84.78 77.79
11/15/99 32.45 0.00 0.00 0.00 100.00 86.18 78.29 70.34
12/15/99 23.13 0.00 0.00 0.00 100.00 80.67 71.85 62.97
01/15/00 13.67 0.00 0.00 0.00 100.00 75.20 65.47 55.68
02/15/00 4.07 0.00 0.00 0.00 100.00 69.75 59.14 48.47
03/15/00 0.00 0.00 0.00 0.00 98.32 64.34 52.87 41.35
04/15/00 0.00 0.00 0.00 0.00 95.40 58.96 46.67 34.31
05/15/00 0.00 0.00 0.00 0.00 92.44 53.62 40.53 27.36
06/15/00 0.00 0.00 0.00 0.00 89.43 48.31 34.44 20.50
07/15/00 0.00 0.00 0.00 0.00 86.38 43.04 28.43 13.73
08/15/00 0.00 0.00 0.00 0.00 83.28 37.81 22.48 7.06
09/15/00 0.00 0.00 0.00 0.00 80.15 32.62 16.60 0.48
10/15/00 0.00 0.00 0.00 0.00 76.96 27.47 10.79 0.00
11/15/00 0.00 0.00 0.00 0.00 73.73 22.37 5.05 0.00
12/15/00 0.00 0.00 0.00 0.00 70.45 17.31 0.00 0.00
01/15/01 0.00 0.00 0.00 0.00 67.13 12.29 0.00 0.00
02/15/01 0.00 0.00 0.00 0.00 63.76 7.31 0.00 0.00
03/15/01 0.00 0.00 0.00 0.00 60.34 2.39 0.00 0.00
04/15/01 0.00 0.00 0.00 0.00 56.87 0.00 0.00 0.00
05/15/01 0.00 0.00 0.00 0.00 53.35 0.00 0.00 0.00
06/15/01 0.00 0.00 0.00 0.00 49.78 0.00 0.00 0.00
07/15/01 0.00 0.00 0.00 0.00 46.15 0.00 0.00 0.00
08/15/01 0.00 0.00 0.00 0.00 42.48 0.00 0.00 0.00
09/15/01 0.00 0.00 0.00 0.00 38.75 0.00 0.00 0.00
10/15/01 0.00 0.00 0.00 0.00 34.97 0.00 0.00 0.00
11/15/01 0.00 0.00 0.00 0.00 31.14 0.00 0.00 0.00
12/15/01 0.00 0.00 0.00 0.00 27.25 0.00 0.00 0.00
01/15/02 0.00 0.00 0.00 0.00 23.30 0.00 0.00 0.00
02/15/02 0.00 0.00 0.00 0.00 19.30 0.00 0.00 0.00
03/15/02 0.00 0.00 0.00 0.00 15.24 0.00 0.00 0.00
04/15/02 0.00 0.00 0.00 0.00 11.12 0.00 0.00 0.00
05/15/02 0.00 0.00 0.00 0.00 6.94 0.00 0.00 0.00
06/15/02 0.00 0.00 0.00 0.00 2.70 0.00 0.00 0.00
07/15/02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
08/15/02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
09/15/02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10/15/02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11/15/02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12/15/02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
01/15/03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
02/15/03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
03/15/03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
04/15/03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
05/15/03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
06/15/03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
07/15/03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
08/15/03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
09/15/03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10/15/03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11/15/03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12/15/03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1/15/04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2/15/04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
3/15/04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4/15/04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5/15/04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6/15/04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7/15/04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8/15/04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
9/15/04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10/15/04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
11/15/04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12/15/04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1/15/05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2/15/05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Weighted Average Life
(years) (1) 0.54 0.28 0.24 0.22 2.24 1.27 1.08 0.94
- - --------------------------------------------------------------------------------------------------------------------------------
</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.
-10-
<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% 1.20% 1.60% 2.00% 0.00% 1.20% 1.60% 2.00%
-------- ------- ------- --------- ---------- ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Closing Date 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
04/15/99 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
05/15/99 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
06/15/99 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
07/15/99 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
08/15/99 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
09/15/99 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
10/15/99 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
11/15/99 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
12/15/99 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
01/15/00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
02/15/00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
03/15/00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
04/15/00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
05/15/00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
06/15/00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
07/15/00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
08/15/00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
09/15/00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
10/15/00 100.00 100.00 100.00 90.28 100.00 100.00 100.00 100.00
11/15/00 100.00 100.00 100.00 79.94 100.00 100.00 100.00 100.00
12/15/00 100.00 100.00 99.00 69.78 100.00 100.00 100.00 100.00
01/15/01 100.00 100.00 89.94 59.78 100.00 100.00 100.00 100.00
02/15/01 100.00 100.00 81.00 49.96 100.00 100.00 100.00 100.00
03/15/01 100.00 100.00 72.19 40.32 100.00 100.00 100.00 100.00
04/15/01 100.00 95.96 63.51 30.87 100.00 100.00 100.00 100.00
05/15/01 100.00 88.14 54.97 21.61 100.00 100.00 100.00 100.00
06/15/01 100.00 80.39 46.56 12.54 100.00 100.00 100.00 100.00
07/15/01 100.00 72.73 38.30 3.67 100.00 100.00 100.00 100.00
08/15/01 100.00 65.15 30.18 0.00 100.00 100.00 100.00 96.15
09/15/01 100.00 57.67 22.21 0.00 100.00 100.00 100.00 89.64
10/15/01 100.00 50.27 14.39 0.00 100.00 100.00 100.00 83.28
11/15/01 100.00 42.97 6.72 0.00 100.00 100.00 100.00 77.10
12/15/01 100.00 35.77 0.00 0.00 100.00 100.00 99.40 71.09
01/15/02 100.00 28.67 0.00 0.00 100.00 100.00 93.74 65.25
02/15/02 100.00 21.66 0.00 0.00 100.00 100.00 88.22 59.59
03/15/02 100.00 14.76 0.00 0.00 100.00 100.00 82.82 54.11
04/15/02 100.00 7.97 0.00 0.00 100.00 100.00 77.56 48.82
05/15/02 100.00 1.29 0.00 0.00 100.00 100.00 72.44 43.73
06/15/02 100.00 0.00 0.00 0.00 100.00 95.93 67.46 38.82
07/15/02 97.40 0.00 0.00 0.00 100.00 90.96 62.62 34.12
08/15/02 90.33 0.00 0.00 0.00 100.00 86.08 57.93 29.63
09/15/02 83.15 0.00 0.00 0.00 100.00 81.29 53.39 25.34
10/15/02 75.87 0.00 0.00 0.00 100.00 76.60 49.01 21.26
11/15/02 68.49 0.00 0.00 0.00 100.00 72.00 44.78 17.41
12/15/02 61.00 0.00 0.00 0.00 100.00 67.50 40.71 13.77
01/15/03 53.40 0.00 0.00 0.00 100.00 63.11 36.81 10.37
02/15/03 45.69 0.00 0.00 0.00 100.00 58.82 33.08 7.19
03/15/03 37.87 0.00 0.00 0.00 100.00 54.64 29.52 4.26
04/15/03 29.94 0.00 0.00 0.00 100.00 50.57 26.14 1.57
05/15/03 21.89 0.00 0.00 0.00 100.00 46.62 22.94 0.75
06/15/03 13.73 0.00 0.00 0.00 100.00 42.77 19.92 0.00
07/15/03 5.45 0.00 0.00 0.00 100.00 39.05 17.09 0.00
08/15/03 0.00 0.00 0.00 0.00 97.73 35.45 14.46 0.00
09/15/03 0.00 0.00 0.00 0.00 91.17 31.97 12.02 0.00
10/15/03 0.00 0.00 0.00 0.00 84.51 28.62 9.78 0.00
11/15/03 0.00 0.00 0.00 0.00 77.76 25.40 7.75 0.00
12/15/03 0.00 0.00 0.00 0.00 70.91 22.31 5.93 0.00
1/15/04 0.00 0.00 0.00 0.00 63.96 19.35 4.32 0.00
2/15/04 0.00 0.00 0.00 0.00 56.92 16.54 2.94 0.00
3/15/04 0.00 0.00 0.00 0.00 49.77 13.87 1.78 0.00
4/15/04 0.00 0.00 0.00 0.00 42.51 11.34 0.85 0.00
5/15/04 0.00 0.00 0.00 0.00 35.16 8.97 0.33 0.00
6/15/04 0.00 0.00 0.00 0.00 27.69 6.74 0.09 0.00
7/15/04 0.00 0.00 0.00 0.00 20.12 4.68 0.00 0.00
8/15/04 0.00 0.00 0.00 0.00 12.44 2.77 0.00 0.00
9/15/04 0.00 0.00 0.00 0.00 4.65 1.02 0.00 0.00
10/15/04 0.00 0.00 0.00 0.00 2.34 0.49 0.00 0.00
11/15/04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
12/15/04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1/15/05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2/1505 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Weighted Average Life
(years) (1) 3.90 2.63 2.26 1.96 5.03 4.21 3.69 3.16
- - -------------------------------------------------------------------------------------------------------------------------------
</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-
