- --------------------------------------------------------------------------------
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) July 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 1996-1)
Superior Bank FSB
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
United States 33-4492 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 July 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 July, 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: July, 1996
EXHIBITS TABLE
21.1 Monthly Remittance Report for the month of July, 1996.
<PAGE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, a division of SUPERIOR BANK, FSB
Designated Servicer
SERVICER'S CERTIFICATE
1996-1 Sub-Pool 1
In accordance with section 6.08 of the Pooling and
Servicing Agreement dated as of March 1, 1996
Lee Servicing Company reports the following
information pertaining to Series 1996-1 Sub-Pool 1 for
July 25, 1996, the Remittance date.
Due period ended: July 1, 1996
- -------------------------------------------------------------------------------
1 of 4
1 Total Actual Principal Collections 841,085.84
2 Total Actual Interest Collections 742,291.35
3 Additional Proceeds 0.00
------------------
4 Total Collections: 1,583,377.19
5 Pre-Funding Account Transfer 0.00
6 Interest Coverage Account Transfer 0.00
------------------
7 Additional Transfers: 0.00
------------------
8 Aggregate Amount Received: 1,583,377.19
Monthly Advance
9 Delinquent Interest 12,762.87
10 Compensating Interest 3,326.90
11 Amounts Held for Future Distributions 0.00
------------------
12 Available Remittance Amount: 1,599,466.96
13 Less: Service Fees 42,494.99
14 Expense Account Deposit: 1,966.85
------------------
15 Adjusted Remittance Amount: 1,555,005.12
Remaining Amount Available:
16 Adjusted Remittance Amount 1,555,005.12
17 Insured Payments 0.00
18 Insurance Account Deposit @ 13 bp 8,603.89
the Ending Principal balance
19 Class Remittance Amounts 1,546,401.23
20 Non-Recoverable Advances not
previously reimbursed 0.00
==================
21 Total Remaining Amount Available: 0.00
==================
Amount of Reimbursements Pursuant to Sec. 5.04
22 Servicing Fee 0.00
23 Monthly Advances and Servicer Advances 0.00
24 Other Mortgage Payments 0.00
25 Interest Earned on P&I Deposits 0.00
26 Additional Servicing Compensation 0.00
- --------------------------------------------------------------------------------
<PAGE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, a division of SUPERIOR BANK, FSB
Designated Servicer
SERVICER'S CERTIFICATE
1996-1 Sub-Pool 1
In accordance with section 6.08 of the Pooling and
Servicing Agreement dated as of March 1, 1996
Lee Servicing Company reports the following
information pertaining to Series 1996-1 Sub-Pool 1 for
July 25, 1996, the Remittance date.
Due period ended: July 1, 1996
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
2 of 4
<CAPTION>
Total Class A1 Class A2 Class A3
----- -------- -------- --------
<S> <C> <C> <C> <C>
27 Number of Loans 1314
28 Original Loan balance 80,261,573.22 19,263,430.91 34,998,934.11 7,499,771.60
29 Pre-Funding Account Balance 0.00 0.00 0.00 0.00
30 Additional principal reduction 746,428.68 746,428.68 0.00 0.00
31 Realized losses, LTD 0.00 0.00 0.00 0.00
32 Carryforward amount 0.00 0.00 0.00 0.00
-------------------------------------------------------------------------
33 Total class principal 79,515,144.54 18,517,002.23 34,998,934.11 7,499,771.60
34 Pool factor per loan balance 86.4600387% 23.2089529% 42.1673905% 9.0358694%
35 Factor per class balance 100.0000000% 26.5060241% 42.1686747% 9.0361446%
36 Class R Remittance 242,634.04
37 Additional Principal due Class A (242,634.04)
38 Interest remittance @ Class Yield 462,681.35 100,609.05 199,493.92 44,498.64
Principal additions:
39 Number of loans 0
40 Transfers from Pre-Funding Account 0.00 0.00 0.00 0.00
Principal reductions:
41 Prepayments - number 12 12
42 Prepayments - dollar 778,338.00 778,338.00 0.00 0.00
43 Net Liquidation Proceeds 0.00 0.00 0.00 0.00
44 Curtailments 0.00 0.00 0.00 0.00
45 Normal and excess payments 62,747.84 62,747.84 0.00 0.00
46 Pre-Funding Account Transfer 0.00 0.00 0.00 0.00
----------------------------------------------------------------------------
47 Total principal Remittance 841,085.84 841,085.84 0.00 0.00
48 Additional principal reduction 242,634.04 242,634.04 0.00 0.00
============================================================================
49 Total remittance 1,546,401.23 1,184,328.93 199,493.92 44,498.64
============================================================================
50 Current Month Realized Loss - number 0 0
51 Current Month Realized Loss - dollar 0.00 0.00
52 Number of Loans 1302
Class principal balance - end of month
53 Loan balance 79,420,487.38 18,422,345.07 34,998,934.11 7,499,771.60
54 Pre-Funding Account Balance 0.00 0.00 0.00 0.00
55 Additional principal reduction, LTD 989,062.72 989,062.72 0.00 0.00
56 Realized losses, LTD 0.00 0.00 0.00 0.00
----------------------------------------------------------------------------
57 Total Class A principal 78,431,424.66 17,433,282.35 34,998,934.11 7,499,771.60
58 Class factor per loan balance 85.4466823% 22.1955965% 42.1673905% 9.0358694%
59 Class factor per class balance 94.4956924% 21.0039546% 42.1673905% 9.0358694%
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Class A4 Class A5 Class R
-------- -------- -------
<S> <C> <C> <C>
27 Number of Loans
28 Original Loan balance 9,999,695.46 8,499,741.14
29 Pre-Funding Account Balance 0.00 0.00
30 Additional principal reduction 0.00 0.00
31 Realized losses, LTD 0.00 0.00
32 Carryforward amount 0.00 0.00
----------------------------------
33 Total class principal 9,999,695.46 8,499,741.14
34 Pool factor per loan balance 12.0478259% 10.2406520%
35 Factor per class balance 12.0481928% 10.2409639%
36 Class R Remittance 242,634.04
37 Additional Principal due Class A (242,634.04)
38 Interest remittance @ Class Yield 62,831.42 55,248.32
Principal additions:
39 Number of loans
40 Transfers from Pre-Funding Account 0.00 0.00
Principal reductions:
41 Prepayments - number
42 Prepayments - dollar 0.00 0.00
43 Net Liquidation Proceeds 0.00 0.00
44 Curtailments 0.00 0.00
45 Normal and excess payments 0.00 0.00
46 Pre-Funding Account Transfer 0.00 0.00
----------------------------------------------
47 Total principal Remittance 0.00 0.00
48 Additional principal reduction 0.00 0.00
==============================================
49 Total remittance 62,831.42 55,248.32 0.00
==============================================
50 Current Month Realized Loss - number
51 Current Month Realized Loss - dollar
52 Number of Loans
Class principal balance - end of month
53 Loan balance 9,999,695.46 8,499,741.14
54 Pre-Funding Account Balance 0.00 0.00
55 Additional principal reduction, LTD 0.00 0.00
56 Realized losses, LTD 0.00 0.00
-------------------------------
57 Total Class A principal 9,999,695.46 8,499,741.14
58 Class factor per loan balance 12.0478259% 10.2406520%
59 Class factor per class balance 12.0478259% 10.2406520%
</TABLE>
<PAGE>
<TABLE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, a division of SUPERIOR BANK, FSB
Designated Servicer
SERVICER'S CERTIFICATE
1996-1 Sub-Pool 1
In accordance with section 6.08 of the Pooling and
Servicing Agreement dated as of March 1, 1996
Lee Servicing Company reports the following
information pertaining to Series 1996-1 Sub-Pool 1 for
July 25, 1996, the Remittance date.
Due period ended: July 1, 1996
- -----------------------------------------------------------------------------------------------------------------------------------
3 of 4
<CAPTION>
Total Class A1 Class A2
----- -------- --------
<S> <C> <C> <C>
60 Weighted Note Rate - THIS remittance 11.35403%
61 Weighted Note Rate - NEXT remittance 11.35407%
62 Pass-Through Rate - THIS remittance 6.52000% 6.84000%
63 Weighted Average Remaining Term 222.60
64 Original Pool - Principal Balance 52,491,569.72 13,913,428.12 22,134,999.28
65 Original Pool - Pre-Funding Account 30,508,430.28 8,086,571.88 12,865,000.72
66 Original Pool - Additonal Principal Reduction 0.00 0.00 0.00
-------------------------------------------------------
67 Original Pool Total 83,000,000.00 22,000,000.00 35,000,000.00
68 Original Pool - Number of Loans 864
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Class A3 Class A4 Class A5
-------- -------- --------
<S> <C> <C> <C>
60 Weighted Note Rate - THIS remittance
61 Weighted Note Rate - NEXT remittance
62 Pass-Through Rate - THIS remittance 7.12000% 7.54000% 7.80000%
63 Weighted Average Remaining Term
64 Original Pool - Principal Balance 4,743,214.13 6,324,285.51 5,375,642.68
65 Original Pool - Pre-Funding Account 2,756,785.87 3,675,714.49 3,124,357.32
66 Original Pool - Additonal Principal Reduction 0.00 0.00 0.00
----------------------------------
67 Original Pool Total 7,500,000.00 10,000,000.00 8,500,000.00
68 Original Pool - Number of Loans
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CLASS A OVER-COLLATERALIZATION RECONCILIATION
Beg.of Month Current Month End of Month
---------------------------------------------------------
<S> <C> <C> <C>
69 Additional Principal Reduction, LTD 746,428.68 242,634.04 989,062.72
70 Less: Realized Losses, LTD 0.00 0.00 0.00
---------------------------------------------------------
71 Over-collateralization of Principal 746,428.68 242,634.04 989,062.72
=========================================================
72 Base Overcollateralization Required 4,150,000.00
73 Required Over-collateralication Amount 4,150,000.00
<CAPTION>
CURRENT MONTH SUBORDINATED AMOUNT Beg.of Month Current Month End of Month
---------------------------------------------------------
<S> <C> <C> <C>
74 Original Subordinated Amount N/A 8,798,000.00
75 Less: Cummulative Realized Losses 0.00 0.00 0.00
76 Plus: Cummulative Additional Proceeds 0.00 0.00 0.00
=========================================================
77 Current Subordinated Amount 0.00 8,798,000.00
=========================================================
NONRECOVERABLE ADVANCE RECONCILIATION
78 Beginning of Month 0.00
79 Current Month Unpaid Nonrecoverable Advance 0.00
80 Less: Current Month Reimbursment 0.00
===================
81 End of Month 0.00
===================
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, a division of SUPERIOR BANK, FSB
Designated Servicer
SERVICER'S CERTIFICATE
1996-1 Sub-Pool 1
In accordance with section 6.08 of the Pooling and
Servicing Agreement dated as of March 1, 1996
Lee Servicing Company reports the following
information pertaining to Series 1996-1 Sub-Pool 1 for
July 25, 1996, the Remittance date.
Due period ended: July 1, 1996
4 of 4
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Class Class
A1 A2
----------------------------------------------------------
<S> <C> <C> <C>
82 Total Class Principal - Original Pool $83,000,000.00 $22,000,000.00 $35,000,000.00
83 Interest Remittance Amount 462,681.35 100,609.05 199,493.92
84 Interest Rate Factor / 1000 5.574474 4.573139 5.699826
85 Total Principal Collections 841,085.84 841,085.84 0.00
86 Prefunding Account Transfer 0.00 0.00 0.00
87 Additional Principal Reduction 242,634.04 242,634.04 0.00
----------------------------------------------------------
88 Principal Remittance Amount 1,083,719.88 1,083,719.88 0.00
89 Principal Payment Factor/1000 13.056866 49.259995 0.000000
90 Principal Factor 944.956924 792.421925 999.969546
91 Prior Month Principal Factor 958.013790 841.681920 999.969546
<CAPTION>
Class Class Class
A3 A4 A5
----------------------------------------------------
<S> <C> <C> <C>
82 Total Class Principal - Original Pool $7,500,000.00 $10,000,000.00 $8,500,000.00
83 Interest Remittance Amount 44,498.64 62,831.42 55,248.32
84 Interest Rate Factor / 1000 5.933152 6.283142 6.499802
85 Total Principal Collections 0.00 0.00 0.00
86 Prefunding Account Transfer 0.00 0.00 0.00
87 Additional Principal Reduction 0.00 0.00 0.00
----------------------------------------------------
88 Principal Remittance Amount 0.00 0.00 0.00
89 Principal Payment Factor/1000 0.000000 0.000000 0.000000
90 Principal Factor 999.969546 999.969546 999.969546
91 Prior Month Principal Factor 999.969546 999.969546 999.969546
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
1996-1 SUB POOL 2
In accordance with section 6.08 of the Pooling and Servicing
Agreement dated as of March 01, 1996 and the Insurance Agreement
dated as of March 22, 1996, Lee Servicing Company reports the
following information pertaining to series 1996-1 Sub Pool 2 for
July 25, 1996, the Remittance date.
Period Ended: July 1, 1996
- -------------------------------------------------------------------------------
Page 1 of 4
1 Total Actual Principal Collections 1,657,282.79
2 Total Actual Interest Collections 600,065.47
3 Additional Proceeds 0.00
-----------------
4 Total Collections 2,257,348.26
Monthly Advance
5 Delinquent Interest 44,657.75
6 Compensating Interest 4,775.18
7 Amounts Held for Future Distributions 0.00
8 Supplemental Interest 0.00
-----------------
9 Available Remittance Amount: 2,306,781.19
10 Less: Service Fees 41,096.39
11 Expense Account Deposit 1,948.12
12 Deposits/Withdrawals for Cross Collaterlization 0.00
-----------------
13 Adjusted Remittance Amount: 2,263,736.68
Remaining Amount Available:
14 Adjusted Remittance Amount 2,263,736.68
15 Insured Payments 0.00
16 Insurance Account Deposit @ 13bp 8,767.76
the ending Class A P-balance
17 Class Remittance Amounts 2,254,968.92
18 Non-Recoverable Advances not
previously reimbursed 0.00
-----------------
19 Total Remaining Amount Available: 0.00
=================
Amount of Reimbursements Pursuant to Sec. 5.04
20 Servicing Fee 0.00
21 Monthly Advances and Servicer Advances 0.00
22 Other Mortgage Payments 0.00
23 Interest Earned on P&I Deposits 0.00
24 Additional Servicing Compensation 0.00
- -------------------------------------------------------------------------------
<PAGE>
<TABLE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
1996-1 SUB POOL 2
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of March 01, 1996 and the Insurance Agreement
dated as of March 22, 1996, Lee Servicing Company reports the
following information pertaining to series 1996-1 Sub Pool 2 for
July 25, 1996, the Remittance date.
Period Ended: July 1, 1996
- -----------------------------------------------------------------------------------------------------------------------------------
Page 2 of 4
<CAPTION>
Total Class 2-A Class R
----- --------- -------
<S> <C> <C> <C>
25 Number of Loans 717
26 Opening Loan balance 82,590,457.73 82,590,457.73
27 Additional principal reduction, LTD 3,008,552.97 3,008,552.97
28 Realized losses, LTD 0.00 0.00
29 Carryforward amount 0.00 0.00
----------------------------------
30 Total Class Principal Balance 79,581,904.76 79,581,904.76
31 Pool factor per loan balance 99.5065756% 99.5065756%
32 Factor per class balance 100.0000000% 100.0000000%
33 Class R Remittance 211,392.91 211,392.91
34 Additional Principal due Class A (211,392.91) (211,392.91)
35 Deposits/Withdrawals for Cross Collaterlization 0.00 0.00
36 Interest remittance 386,293.22 386,293.22
Principal reductions:
37 Prepayments - number 13 13
38 Prepayments - dollar 1,613,478.76 1,613,478.76
39 Net Liquidation Proceeds 0.00 0.00
40 Curtailments 0.00 0.00
41 Normal and excess payments 43,804.03 43,804.03
--------------------------------------------------------------
42 Total principal Remittance 1,657,282.79 1,657,282.79
43 Additional principal reduction 211,392.91 211,392.91
==============================================================
44 Total remittance 2,254,968.92 2,254,968.92 0.00
==============================================================
45 Carryforward Amount 0.00
46 Current Month Realized Loss - number 0
47 Current Month Realized Loss - dollar 0.00
48 Number of Loans # 704
Class principal balance - end of month
49 Loan balance 80,933,174.94 80,933,174.94
50 Additional principal reduction, LTD 3,219,945.88 3,219,945.88
51 Realized losses, LTD 0.00 0.00
52 Carryforward amount 0.00 0.00
----------------------------------
53 Total Class A principal 77,713,229.06 77,713,229.06
54 Class factor per loan balance 97.5098493% 97.5098493%
55 Class factor per class balance 93.6303965% 93.6303965%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
1996-1 SUB POOL 2
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of March 01, 1996 and the Insurance Agreement
dated as of March 22, 1996, Lee Servicing Company reports the
following information pertaining to series 1996-1 Sub Pool 2 for
July 25, 1996, the Remittance date.
Period Ended: July 1, 1996
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------------
Page 3 of 4
<CAPTION>
Total Class A1
----- --------
<S> <C> <C> <C>
56 Weighted Note Rate: 9.49092%
57 Weighted Note Rate Next Remittance: 9.63913%
58 Pass-Through Rate: 5.82484% 5.82484%
59 Related Remittance Period 25-Jun-96 thru 24-Jul-96
60 Days in Related Period: 30
61 Weighted Average Remaining Term 355.32
62 Original Pool - Principal Balance 57,027,110.90 57,027,110.90
63 Original Pool - Pre-Funding Account 28,407,783.59 28,407,783.59
64 Original Pool - Additional Principal Reduction 2,434,894.49 2,434,894.49
----------------------------------
65 Original Pool Total 83,000,000.00 83,000,000.00
66 Original Pool - Number of Loans 318
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS A OVERCOLLATERALIZATION RECONCILIATION
Beginning of Month Current Month End of Month
------------------------------------------------
<S> <C> <C> <C>
67 Additional Principal Reduction, LTD 3,008,552.97 211,392.91 3,219,945.88
68 Less: Realized Losses, LTD 0.00 0.00 0.00
69 Deposits/Withdrawals from Cross Collaterlization 0.00 0.00 0.00
================================================
70 Overcollateralization of Principal 3,008,552.97 211,392.91 3,219,945.88
================================================
71 Base Overcollateralization Requirement 4,058,157.00
<CAPTION>
CURRENT MONTH SUBORDINATED AMOUNT Beginning of Month Current Month End of Month
------------------------------------------------
<S> <C> <C> <C>
72 Original Subordinated Amount 9,269,686.00 N/A 9,269,686.00
73 Less: Cumulative Realized Losses 0.00 0.00 0.00
74 Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
================================================
75 Current Subordinated Amount 9,269,686.00 9,269,686.00
================================================
NONRECOVERABLE ADVANCE RECONCILIATION
76 Beginning of Month 0.00
77 Current Month Unpaid Nonrecoverable Advance 0.00
78 Less: Current Month Reimbursment 0.00
=================
79 End of Month 0.00
=================
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
1996-1 SUB POOL 2
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of March 01, 1996 and the Insurance Agreement
dated as of March 22, 1996, Lee Servicing Company reports the
following information pertaining to series 1996-1 Sub Pool 2 for
July 25, 1996, the Remittance date.
Period Ended: July 1, 1996
--------------------------------------------------------------------------
Page 4 of 4
Class
A1
-------------------------------
80 Total Class Principal - Original Pool $83,000,000.00 $83,000,000.00
81 Interest Remittance Amount 386,293.22 386,293.22
82 Interest Rate Factor / 1000 4.654135 4.654135
83 Total Principal Collections 1,657,282.79 1,657,282.79
84 Additional Principal Reduction 211,392.91 211,392.91
-------------------------------
85 Principal Remittance Amount 1,868,675.70 1,868,675.70
86 Principal Payment Factor/1000 22.514165 22.514165
87 Principal Factor 936.303964 936.303964
88 Prior Month Principal Factors 958.818129 958.818129
--------------------------------------------------------------------------
