================================================================================
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 25, 1996
SUPERIOR BANK FSB (as depositor under the Pooling and Servicing Agreement, dated
as of March 1, 1996, providing for the issuance of AFC Mortgage Loan Asset
Backed Certificates, Series 1996-3)
SUPERIOR BANK FSB
- ----------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
United States 333-4492 36-1414142
- ---------------------------- ----------- ---------------------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification Number)
One Lincoln Centre
Oakbrook Terrace, Illinois 60181
- -------------------------- ----------
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code (708) 916-4000
================================================================================
<PAGE>
ITEM 5. OTHER EVENTS
On November 25, 1996 (a "Remittance Date") a scheduled remittance was made
to the Certificateholders with respect to AFC Mortgage Loan Asset Backed
Certificates, Series 1996-1, issued pursuant to a Pooling and Servicing
Agreement, dated as of March 1, 1996, among Superior Band FSB., as Depositor,
Lee Servicing Company, a division of Superior Bank FSB., as Servicer and LaSalle
National Bank, as Trustee. The information contained in the Servicer's Monthly
Remittance Report to the Trustee, which shall be forwarded by the Trustee to the
Certificateholders, is attached hereto as Exhibit 21.1 and is incorporated
herein by reference.
Capitalized terms used herein and not defined shall have the same meanings
ascribed to them in the pooling and Servicing Agreement.
Items 2 through 4 and Items 6 and 8 are not included because they are not
applicable.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Not applicable
(b) Not applicable
(c) Exhibits
21.1 Monthly Remittance Report for the month of November, 1996.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SUPERIOR BANK F.B.
By: /s/ William C. Bracken
------------------------------
Name: William C. Bracken
Title: Executive Vice President
Dated: November , 1996
<PAGE>
EXHIBITS TABLE
21.1 Monthly Remittance Report for the month of November, 1996.
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, a division of SUPERIOR BANK, FSB
Designated Servicer
SERVICER'S CERTIFICATE
1996-3 Sub-Pool 1
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of September 1, 1996 Lee Servicing Company reports the following
information pertaining to Series 1996-3 Sub-Pool 1 for November 25, 1996, the
Remittance date.
Due period ended: November 1, 1996
- --------------------------------------------------------------------------------
1 Total Actual Principal Collections 1,025,960.08
2 Total Actual Interest Collections 943,611.00
3 Additional Proceeds 0.00
------------
4 Total Collections: 1,969,571.08
5 Pre-Funding Account Transfer 550.68
6 Interest Coverage Account Transfer 160,092.71
------------
7 Aggregate Amount Received: 2,130,214.47
Monthly Advances
8 Delinquent Interest 336,658.43
9 Compensating Interest 1,959.90
10 Amounts Held for Future Distributions 0.00
11 Reserve Withdrawal per Sec. 6.14c 0.00
------------
12 Available Remittance Amount: 2,468,832.80
13 Service Fees 61,967.27
14 Expense Account Deposit: 3,700.16
15 Cross Collateral Deposit 0.00
------------
16 Adjusted Remittance Amount: 2,403,165.37
Remaining Amount Available:
17 Adjusted Remittance Amount 2,403,165.37
18 Insured Payments 0.00
19 Insurance Account Deposit @ 13 bp
the Ending Principal Balance 16,033.96
20 Cross Collateral Withdrawal 0.00
21 Class Remittance Amounts 2,387,131.41
22 Non-Recoverable Advances not
Previously Reimbursed 0.00
------------
23 Total Remaining Amount Available: 0.00
============
Amount of Reimbursements Pursuant to Sec. 5.04
24 Servicing Fee 0.00
25 Monthly Advances and Servicer Advances 0.00
26 Other Mortgage Payments 0.00
27 Interest Earned on P&I Deposits 0.00
28 Additional Servicing Compensation 0.00
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1 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, a division of SUPERIOR BANK, FSB
Designated Servicer
SERVICER'S CERTIFICATE
1996-3 Sub-Pool 1
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of September 1, 1996 Lee Servicing Company reports the following
information pertaining to Series 1996-3 Sub-Pool 1 for November 25, 1996, the
Remittance date.
Due period ended: November 1, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class A-1 Class A-2 Class A-3 Class A4
----- --------- --------- --------- --------
<C> <C> <C> <C> <C> <C>
29 Loans Outstanding--BOM 1973
30 Opening Loan Balance 118,162,043.77 52,528,214.68 8,303,074.76 19,966,917.88 7,512,305.74
31 Pre-Funding Account Balance 32,869,194.78 14,681,573.66 2,300,843.64 5,532,981.13 2,081,715.67
32 Additional Principal Reduction, LTD 1,998,947.87 1,177,497.66 103,918.40 249,899.01 94,021.41
33 Realized Losses, LTD 0.00 0.00 0.00 0.00 0.00
34 Carryforward Amount 0.00 0.00 0.00 0.00 0.00
-------------- ------------- ------------ ------------- ------------
35 Total Class Principal Balance 149,032,290.68 66,032,290.68 10,500,000.00 25,250,000.00 9,500,000.00
36 Pool Factor per Loan Balance 78.7746958% 35.0188098% 5.5353832% 13.3112786% 5.0082038%
37 Pool Factor per Class Balance 99.3548605% 98.5556577% 100.0000000% 100.0000000% 100.0000000%
38 Excess Spread 0.00
39 Cross Collateral Withdrawal 0.00
40 Cross Collateral Deposit 0.00 0.00
41 Additional Principal due Class A 518,132.29 518,132.29
42 Interest Remittance @ Class Yield 842,488.36 312,736.27 63,175.00 157,391.67 59,691.67
Principal Additions:
43 Number of loans 590
44 Transfers from Pre-Funding Account 32,868,644.10 14,681,327.69 2,300,805.09 5,532,888.43 2,081,680.79
Principal Reductions:
45 Prepayments--Number 12 12
46 Prepayments--Dollar 825,078.08 825,078.08 0.00 0.00 0.00
47 Net Liquidation Proceeds 0.00 0.00 0.00 0.00 0.00
48 Curtailments 0.00 0.00 0.00 0.00 0.00
49 Normal and Excess Payments 200,882.00 200,882.00 0.00 0.00 0.00
50 Pre-Funding Account Transfer 550.68 245.97 38.55 92.70 34.88
-------------- ------------- ------------ ------------- ------------
51 Total Principal Remittance 1,025,960.08 1,025,960.08 0.00 0.00 0.00
52 Additional Principal Reduction 518,132.29 518,132.29 0.00 0.00 0.00
-------------- ------------- ------------ ------------- ------------
53 Total Remittance 2,387,131.41 1,857,074.61 63,213.55 157,484.37 59,726.55
============== ============= ============ ============= ============
54 Current Month Realized Loss--number 0 0
55 Current Month Realized Loss--dollar 0.00 0.00
Class Principal Balance--EOM
56 Loans Outstanding--EOM 2551
57 Closing Loan Balance 150,004,727.79 66,183,582.29 10,603,879.85 25,499,806.31 9,593,986.53
58 Pre-Funding Account Balance 0.00 0.00 0.00 0.00 0.00
59 Additional Principal Reduction, LTD 2,517,080.16 1,695,629.95 103,918.40 249,899.01 94,021.41
60 Realized losses, LTD 0.00 0.00 0.00 0.00 0.00
-------------- ------------- ------------ ------------- ------------
61 Total Class Principal Balance 147,487,647.63 64,487,952.34 10,499,961.45 25,249,907.30 9,499,965.12
62 Pool Factor per Loan Balance 100.0031519% 44.1223882% 7.0692532% 16.9998709% 6.3959910%
63 Pool Factor per Class Balance 98.3250984% 96.2506751% 99.9996329% 99.9996329% 99.9996328%
============== ============= ============ ============= ============
<CAPTION>
Class A-5 Class A-6 Class R
--------- --------- --------
<S> <C> <C> <C>
29 Loans Outstanding--BOM
30 Opening Loan Balance 20,757,686.92 9,093,843.79
31 Pre-Funding Account Balance 5,752,109.08 2,519,971.60
32 Additional Principal Reduction, LTD 259,796.00 113,815.39
33 Realized Losses, LTD 0.00 0.00
34 Carryforward Amount 0.00 0.00
------------- -------------
35 Total Class Principal Balance 26,250,000.00 11,500,000.00
36 Pool Factor per Loan Balance 13.8384579% 6.0625625%
37 Pool Factor per Class Balance 100.0000000% 100.0000000%
38 Excess Spread 0.00
39 Cross Collateral Withdrawal 0.00
40 Cross Collateral Deposit
41 Additional Principal due Class A
42 Interest Remittance @ Class Yield 172,156.25 77,337.50
Principal Additions:
43 Number of loans
44 Transfers from Pre-Funding Account 5,752,012.71 2,519,929.39
Principal Reductions:
45 Prepayments--Number
46 Prepayments--Dollar 0.00 0.00
47 Net Liquidation Proceeds 0.00 0.00
48 Curtailments 0.00 0.00
49 Normal and Excess Payments 0.00 0.00
50 Pre-Funding Account Transfer 96.37 42.21
------------- -------------
51 Total Principal Remittance 0.00 0.00
52 Additional Principal Reduction 0.00 0.00
------------- -------------
53 Total Remittance 172,252.62 77,379.71 0.00
============= ============= ====
54 Current Month Realized Loss--number
55 Current Month Realized Loss--dollar
Class Principal Balance--EOM
56 Loans Outstanding--EOM
57 Closing Loan Balance 26,509,699.63 11,613,773.18
58 Pre-Funding Account Balance 0.00 0.00
59 Additional Principal Reduction, LTD 259,796.00 113,815.39
60 Realized losses, LTD 0.00 0.00
------------- -------------
61 Total Class Principal Balance 26,249,903.63 11,499,957.79
62 Pool Factor per Loan Balance 17.6731331% 7.7425155%
63 Pool Factor per Class Balance 99.9996329% 99.9996330%
============= =============
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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<PAGE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, a division of SUPERIOR BANK, FSB
Designated Servicer
SERVICER'S CERTIFICATE
1996-3 Sub-Pool 1
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of September 1, 1996 Lee Servicing Company reports the following
information pertaining to Series 1996-3 Sub-Pool 1 for November 25, 1996, the
Remittance date.
Due period ended: November 1, 1996
<TABLE>
<CAPTION>
Total Class A-1 Class A-2 Class A-3 Class A4
----- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C>
64 Weighted Note Rate--
THIS Remittance 11.57720%
65 Weighted Note Rate--
NEXT Remittance 11.64389%
66 Related Remittance Period
for Libor Rate 25-Oct-96 thru 24-Nov-96
67 Days in Related Period 31
68 Pass-Through Rates 5.50000% 7.22% 7.48% 7.54%
69 Weighted Average Remaining Term 215.43
70 Original Pool--Principal Balance 93,528,661.75 41,776,135.59 6,547,006.32 15,743,991.39 5,923,481.91
71 Original Pool--Pre-Funding Account 57,955,886.82 25,886,962.77 4,056,912.08 9,755,907.62 3,670,539.50
72 Original Pool--Additional Principal 1,484,548.57 663,098.36 103,918.40 249,899.01 94,021.41
Reduction ------------- ------------- ------------ ------------- ------------
73 Original Pool Total 150,000,000.00 67,000,000.00 10,500,000.00 25,250,000.00 9,500,000.00
74 Original Pool--Number of Loans 1536
<CAPTION>
Class A-5 Class A-6
--------- ---------
<C> <C> <C>
64 Weighted Note Rate--
THIS Remittance
65 Weighted Note Rate--
NEXT Remittance
66 Related Remittance Period
for Libor Rate
67 Days in Related Period
68 Pass-Through Rates 7.87% 8.07%
69 Weighted Average Remaining Term
70 Original Pool--Principal Balance 16,367,515.81 7,170,530.73
71 Original Pool--Pre-Funding Account 10,142,280.19 4,443,284.66
72 Original Pool--Additional Principal
Reduction 259,796.00 113,815.39
------------- -------------
73 Original Pool Total 26,250,000.00 11,500,000.00
74 Original Pool--Number of Loans
<CAPTION>
Class A Overcollateralization
Reconciliation
----------------------------- Beg.of Month Current Month End of Month
------------- ------------- -------------
<C> <C> <C> <C>
75 Additional Principal Reduction, LTD 1,998,947.87 518,132.29 2,517,080.16
76 Cross Collateral Deposits 0.00 0.00 0.00
77 Less: Realized Losses, LTD 0.00 0.00 0.00
------------ ---------- ------------
78 Overcollateralization of Principal 1,998,947.87 518,132.29 2,517,080.16
============ ========== ============
79 Base Overcollateralization Required 7,907,493.00
80 Required Overcollateralization Amount 7,907,493.00
Current Month Subordinated Amount Beg.of Month Current Month End of Month
--------------------------------- ------------- ------------- -------------
81 Original Subordinated Amount 16,754,191.00 N/A 16,754,191.00
82 Less: Cumulative Realized Losses 0.00 0.00 0.00
83 Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
------------- ---------- -------------
84 Current Subordinated Amount 16,754,191.00 16,754,191.00
============= ========== =============
Nonrecoverable Advance Reconciliation
-------------------------------------
85 Beginning of Month 0.00
86 Current Month Unpaid Nonrecoverable
Advance 0.00
87 Less: Current Month Reimbursement 0.00
----------
88 End of Month 0.00
==========
</TABLE>
3 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, a division of SUPERIOR BANK, FSB
Designated Servicer
SERVICER'S CERTIFICATE
1996-3 Sub-Pool 1
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of September 1, 1996 Lee Servicing Company reports the following
information pertaining to Series 1996-3 Sub-Pool 1 for November 25, 1996, the
Remittance date.
Due period ended: November 1, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Class Class Class Class Class Class
A1 A2 A3 A4 A5 A6
----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
89 Total Class Principal
--Original Pool $150,000,000.00 $67,000,000.00 $10,500,000.00 $25,250,000.00 $9,500,000.00 $26,250,000.00 $11,500,000.00
90 Interest Remittance
Amount 842,488.36 312,736.27 63,175.00 157,391.67 59,691.67 172,156.25 77,337.50
91 Interest Rate
Factor/1000 5.616589 4.667705 6.016667 6.233333 6.283334 6.558333 6.725000
92 Total Principal
Collections 1,025,960.08 1,025,960.08 0.00 0.00 0.00 0.00 0.00
93 Prefunding Account
Transfer 550.68 245.97 38.55 92.70 34.88 96.37 42.21
94 Additional Principal
Reduction 518,132.29 518,132.29 0.00 0.00 0.00 0.00 0.00
--------------- -------------- -------------- -------------- ------------- -------------- --------------
95 Principal Remittance
Amount 1,544,643.05 1,544,338.34 38.55 92.70 34.88 96.37 42.21
96 Principal Payment
Factor/1000 10.297620 23.049826 0.003671 0.003671 0.003672 0.003671 0.003670
97 Principal Factor 983.250985 962.506751 999.996329 999.996329 999.996328 999.996329 999.996330
98 Prior Month Principal
Factor 993.548605 985.556577 1,000.000000 1,000.000000 1,000.000000 1,000.000000 1,000.000000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
1996-3 SUB POOL 2
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of September 1, 1996 and the Insurance Agreement dated as of September
25, 1996, Lee Servicing Company reports the following
information pertaining to series 1996-3 Sub Pool 2 for November 25, 1996, the
Remittance date.
Period Ended: November 1, 1996
- --------------------------------------------------------------------------------
1 Total Actual Principal Collections 1,214,465.81
2 Total Actual Interest Collections 490,257.25
3 Additional Proceeds 0.00
------------
4 Total Collections: 1,704,723.06
5 Pre-Funding Account Transfer 725.45
6 Interest Coverage Account Transfer 68,015.74
------------
7 Aggregate Amount Received: 1,773,464.25
Monthly Advance
8 Delinquent Interest 187,516.97
9 Compensating Interest 3,867.65
10 Amounts Held for Future Distributions 0.00
11 Supplemental Interest 0.00
12 Reserve Withdrawal Per Sec. 6.08 VII 0.00
------------
13 Available Remittance Amount: 1,964,848.87
14 Less: Service Fees 36,423.34
15 Less: Expense Account Deposit 2,209.98
16 Cross Collateral Deposit 0.00
------------
17 Adjusted Remittance Amount: 1,926,215.55
Remaining Amount Available:
18 Adjusted Remittance Amount 1,926,215.55
19 Insured Payments 0.00
20 Insurance Account Deposit @ 13bp
the Ending Class Principal Balance 9,576.50
21 Class Remittance Amounts 1,916,639.05
22 Cross Collateral Withdrawal 0.00
23 Non-Recoverable Advances not
Previously Reimbursed 0.00
------------
24 Total Remaining Amount Available: 0.00
============
Amount of Reimbursements Pursuant to Sec. 5.04
25 Servicing Fee 0.00
26 Monthly Advances and Servicer Advances 0.00
27 Other Mortgage Payments 0.00
28 Interest Earned on P&I Deposits 0.00
29 Additional Servicing Compensation 0.00
- --------------------------------------------------------------------------------
1 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
1996-3 SUB POOL 2
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of September 01, 1996 and the Insurance Agreement dated as of September
25, 1996, Lee Servicing Company reports the following
information pertaining to series 1996-3 Sub Pool 2 for November 25, 1996, the
Remittance date.
Period Ended: November 1, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
Total Class 2-A Class R
------- --------- --------
<S> <C> <C> <C>
30 Number of Loans 643
31 Opening Principal Balance 75,514,379.23 75,514,379.23
32 Opening Pre-Funding Account Balance 16,674,371.52 16,674,371.52
33 Additional Principal Reduction, LTD 2,575,110.24 2,575,110.24
34 Realized Losses, LTD 0.00 0.00
35 Carryforward Amount 0.00 0.00
------------- -------------
36 Opening Class Principal Balance 89,613,640.51 89,613,640.51
37 Pool Factor per Loan Balance 83.9048658% 83.9048658%
38 Pool Factor per Class Balance 100.0000000% 100.0000000%
39 Excess Spread 0.00 0.00
40 Additional Principal due Class A 262,751.68 262,751.68
41 Cross Collateral Deposit 0.00 0.00
42 Cross Collateral Withdrawal 0.00 0.00
43 Interest Remittance 438,696.11 438,696.11
Principal Additions:
44 Number of Loans 157
45 Transfers from Pre-Funding Account 16,673,646.07 16,673,646.07
Principal Reductions:
46 Prepayments--Number 11 11
47 Prepayments--Dollar 1,178,493.66 1,178,493.66
48 Net Liquidation Proceeds 0.00 0.00
49 Curtailments 0.00 0.00
50 Normal and Excess Payments 35,972.15 35,972.15
51 Pre-Funding Account Transfer 725.45 725.45
------------- -------------
52 Total Principal Remittance 1,214,465.81 1,214,465.81
53 Additional Principal Reduction 262,751.68 262,751.68
------------- -------------
54 Total Remittance 1,916,639.05 1,916,639.05 0.00
============= ============= ====
55v Carryforward Amount 0.00
56 Current Month Realized Loss--Number 0 0
57 Current Month Realized Loss--Dollar 0.00 0.00
Class Principal Balance--EOM
58 Number of Loans # 789
59 Closing Loan Balance 90,973,559.49 90,973,559.49
60 Pre-Funding Account Balance 0.00 0.00
61 Additional Principal Reduction, LTD 2,837,861.92 2,837,861.92
62 Realized Losses, LTD 0.00 0.00
63 Carryforward Amount 0.00 0.00
------------- -------------
64 Closing Class Principal Balance 88,135,697.57 88,135,697.57
65 Pool Factor per Loan Balance 101.0817328% 101.0817328%
66 Pool Factor per Class Balance 97.9285529% 97.9285529%
- -----------------------------------------------------------------------------------------------------------
</TABLE>
2 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
1996-3 SUB POOL 2
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of September 1, 1996 and the Insurance Agreement dated as of September
25, 1996, Lee Servicing Company reports the following
information pertaining to series 1996-3 Sub Pool 2 for November 25, 1996, the
Remittance date.
Period Ended: November 1, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
Total Class A1
------- --------
<S> <C> <C> <C>
67 Weighted Note Rate--This Remittance: 9.96277%
68 Weighted Note Rate--Next Remittance: 9.94424%
69 Pass-Through Rate: 5.68500% 5.68500%
70 Related Remittance Period: 25-Oct-96 thru 24-Nov-96
71 Days in Related Period: 31
72 Weighted Average Remaining Term 357.00
73 Original Pool--Principal Balance 56,969,975.31 56,969,975.31
74 Original Pool--Pre-Funding Account Balance 35,337,717.00 35,337,717.00
75 Original Pool--Initial Overcollateralization 2,307,692.31 2,307,692.31
------------- -------------
76 Original Pool--Class Principal Balance 90,000,000.00 90,000,000.00
77 Original Pool--Number of Loans 479
Class A Overcollateralization Reconciliation
--------------------------------------------
Beginning of Month Current Month End of Month
------------------ ------------- ------------
78 Additional Principal Reduction, LTD 2,575,110.24 262,751.68 2,837,861.92
79 Cross Collateral Deposits, LTD 0.00 0.00 0.00
80 Less: Realized Losses, LTD 0.00 0.00 0.00
------------ ---------- ------------
81 Overcollateralization of Principal 2,575,110.24 262,751.68 2,837,861.92
============ ========== ============
82 Base Overcollateralization Requirement 3,876,923.00
83 Required Overcollateralization 3,876,923.00
Current Month Subordinated Amount Beginning of Month Current Month End of Month
--------------------------------- ------------------ ------------- ------------
84 Original Subordinated Amount 9,249,230.00 N/A 9,249,230.00
85 Less: Cumulative Realized Losses 0.00 0.00 0.00
86 Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
------------ ---------- ------------
87 Current Subordinated Amount 9,249,230.00 9,249,230.00
============ ============
Nonrecoverable Advance Reconciliation
-------------------------------------
88 Beginning of Month 0.00
89 Current Month Nonrecoverable Advance 0.00
90 Less: Current Month Reimbursment 0.00
------------
91 End of Month 0.00
============
- -------------------------------------------------------------------------------------------------------------
</TABLE>
3 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
1996-3 SUB POOL 2
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of September 1, 1996 and the Insurance Agreement dated as of September
25, 1996, Lee Servicing Company reports the following
information pertaining to series 1996-3 Sub Pool 2 for November 25, 1996, the
Remittance date.
Period Ended: November 1, 1996
- --------------------------------------------------------------------------------
Class
A1
------
92 Total Class Principal--Original Pool $90,000,000.00 $90,000,000.00
93 Interest Remittance Amount 438,696.11 438,696.11
94 Interest Rate Factor/1000 4.874401 4.874401
95 Total Principal Collections 1,214,465.81 1,214,465.81
96 Prefunding Account Transfer 725.45 725.45
97 Additional Principal Reduction 262,751.68 262,751.68
-------------- --------------
98 Principal Remittance Amount 1,477,942.94 1,477,942.94
99 Principal Payment Factor/1000 16.421588 16.421588
100 Principal Factor 979.285529 979.285529
101 Prior Month Principal Factor 995.707117 995.707117
- -------------------------------------------------------------------------------
4 of 4
