================================================================================
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) September 25, 1996
SUPERIOR BANK FSB (as depositor under the Pooling and Servicing Agreement, dated
as of June 1, 1996, providing for the issuance of AFC Mortgage Loan Asset Backed
Certificates, Series 1996-2)
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 September 25, 1996 (a "Remittance Date") a scheduled remittance was made
to the Certificateholders with respect to AFC Mortgage Loan Asset Backed
Certificates, Series 1996-2, 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 September, 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: September __, 1996
<PAGE>
EXHIBITS TABLE
21.1 Monthly Remittance Report for the month of September, 1996.
EXHIBIT 21.1
Page 1 of 4
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK, FSB
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1996-2 SUB-POOL 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF JUNE 1, 1996 LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1996-2 SUB-POOL 1
FOR SEPTEMBER 25, 1996, THE REMITTANCE DATE.
DUE PERIOD ENDED: SEPTEMBER 1, 1996
1 Total Actual Principal Collections 572,386.17
2 Total Actual Interest Collections 1,237,022.72
3 Additional Proceeds 0.00
---------------
4 Aggregate Amount Received: 1,809,408.89
Monthly Advances
5 Delinquent Interest 10,590.26
6 Compensating Interest 2,445.85
7 Amounts Held for Future Distributions 0.00
---------------
8 Available Remittance Amount: 1,822,445.00
9 Less: Service Fees 71,419.48
10 Expense Account Deposit 3,478.35
11 Plus: Cross Collateral Deposit 0.00
---------------
12 Adjusted Remittance Amount: 1,747,547.17
Remaining Amount Available:
13 Adjusted Remittance Amount 1,747,547.17
14 Insured Payments 0.00
15 Insurance Account Deposit @ 13 bp
the Ending Principal balance 15,392.94
16 Cross Collateral Withdrawal 0.00
17 Class Remittance Amounts 1,732,154.23
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>
Page 2 of 4
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK, FSB
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1996-2 SUB-POOL 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF JUNE 1, 1996 LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1996-2 SUB-POOL 1
FOR SEPTEMBER 25, 1996, THE REMITTANCE DATE.
DUE PERIOD ENDED: SEPTEMBER 1, 1996
<TABLE>
<CAPTION>
Total Class A-1 Class A-2 Class A-3
----- --------- --------- ---------
<C> <C> <C> <C> <C>
25 Loans Outstanding - BOM 2260
26 Opening Principal Loan Balance 142,661,025.50 62,499,096.05 10,147,079.68 24,352,991.22
27 Additional Principal Reduction, LTD 2,954,650.52 1,776,024.72 149,193.14 358,063.53
28 Realized losses, LTD 0.00 0.00 0.00 0.00
29 Carryforward Amount 0.00 0.00 0.00 0.00
--------------- ------------- ------------- -------------
30 Total Class Principal 139,706,374.98 60,723,071.33 9,997,886.54 23,994,927.69
31 Class Factor per Loan Balance 99.7629549% 43.7056616% 7.0958599% 17.0300638%
32 Class Factor per Class Balance 97.6967657% 42.4636862% 6.9915290% 16.7796697%
33 Excess Spread 0.00
34 Cross Collateral Deposit 0.00 0.00
35 Cross Collateral Withdrawal 0.00
36 Additional Principal due Class A 366,890.29 366,890.29
37 Interest Remittance @ Class Yield 792,877.77 279,136.37 61,237.06 151,767.92
Principal Reductions:
38 Prepayments - Number 6 6
39 Prepayments - Dollar 455,036.96 455,036.96 0.00 0.00
40 Net Liquidation Proceeds 0.00 0.00 0.00 0.00
41 Curtailments 3,205.96 3,205.96 0.00 0.00
42 Normal and Excess Payments 114,143.25 114,143.25 0.00 0.00
--------------- ------------- ------------- -------------
43 Total Principal Remittance 572,386.17 572,386.17 0.00 0.00
44 Additional Principal Reduction 366,890.29 366,890.29 0.00 0.00
--------------- ------------- ------------- -------------
45 Total Remittance 1,732,154.23 1,218,412.83 61,237.06 151,767.92
=============== ============= ============= =============
46 Current Month Realized Loss - Number 0 0
47 Current Month Realized Loss - Dollar 0.00 0.00
Class Principal Balance - EOM
48 Loans Outstanding - EOM 2254
49 Closing Loan Balance 142,088,639.33 61,926,709.88 10,147,079.68 24,352,991.22
50 Additional Principal Reduction, LTD 3,321,540.81 2,142,915.01 149,193.14 358,063.53
51 Realized Losses, LTD 0.00 0.00 0.00 0.00
52 Carryforward Amount 0.00 0.00 0.00 0.00
--------------- ------------- ------------- -------------
53 Total Class Principal Balance 138,767,098.52 59,783,794.87 9,997,886.54 23,994,927.69
54 Class Factor per Loan Balance 99.3626848% 43.3053915% 7.0958599% 17.0300638%
55 Class Factor per Class Balance 97.0399290% 41.8068496% 6.9915291% 16.7796697%
<CAPTION>
Class A4 Class A-5 Class A-6 Class R
-------- --------- --------- -------
<S> <C> <C> <C> <C>
25 Loans Outstanding - BOM
26 Opening Principal Loan Balance 9,132,371.71 25,367,699.20 11,161,787.64
27 Additional Principal Reduction, LTD 134,273.83 372,982.85 164,112.45
28 Realized losses, LTD 0.00 0.00 0.00
29 Carryforward Amount 0.00 0.00 0.00
------------ ------------- -------------
30 Total Class Principal 8,998,097.88 24,994,716.35 10,997,675.19
31 Class Factor per Loan Balance 6.3862739% 17.7396498% 7.8054459%
32 Class Factor per Class Balance 6.2923761% 17.4788226% 7.6906820%
33 Excess Spread 0.00
34 Cross Collateral Deposit
35 Cross Collateral Withdrawal 0.00
36 Additional Principal due Class A
37 Interest Remittance @ Class Yield 58,037.73 166,631.44 76,067.25
Principal Reductions:
38 Prepayments - Number
39 Prepayments - Dollar 0.00 0.00 0.00
40 Net Liquidation Proceeds 0.00 0.00 0.00
41 Curtailments 0.00 0.00 0.00
42 Normal and Excess Payments 0.00 0.00 0.00
------------ ------------- ------------- -------------
43 Total Principal Remittance 0.00 0.00 0.00
44 Additional Principal Reduction 0.00 0.00 0.00
------------ ------------- ------------- -------------
45 Total Remittance 58,037.73 166,631.44 76,067.25 0.00
============ ============= ============= =============
46 Current Month Realized Loss - Number
47 Current Month Realized Loss - Dollar
Class Principal Balance - EOM
48 Loans Outstanding - EOM
49 Closing Loan Balance 9,132,371.71 25,367,699.20 11,161,787.64
50 Additional Principal Reduction, LTD 134,273.83 372,982.85 164,112.45
51 Realized Losses, LTD 0.00 0.00 0.00
52 Carryforward Amount 0.00 0.00 0.00
------------ ------------- -------------
53 Total Class Principal Balance 8,998,097.88 24,994,716.35 10,997,675.19
54 Class Factor per Loan Balance 6.3862739% 17.7396498% 7.8054459%
55 Class Factor per Class Balance 6.2923761% 17.4788226% 7.6906820%
</TABLE>
<PAGE>
Page 3 of 4
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK, FSB
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1996-2 SUB-POOL 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF JUNE 1, 1996 LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1996-2 SUB-POOL 1
FOR SEPTEMBER 25, 1996, THE REMITTANCE DATE.
DUE PERIOD ENDED: SEPTEMBER 1, 1996
<TABLE>
<CAPTION>
Total Class A-1 Class A-2 Class A-3
----- --------- --------- ---------
<C> <C> <C> <C> <C>
56 Weighted Note Rate - THIS Remittance 11.25834%
57 Weighted Note Rate - NEXT Remittance 11.26018%
58 Related Remittance Period for Libor Rate 26-Aug-96 thru 24-Sep-96
59 Days in Related Period 30
60 Pass-Through Rate - THIS Remittance 5.51625% 7.350% 7.590%
61 Weighted Average Remaining Term 219.51
62 Original Pool - Principal Balance 91,623,068.53 41,006,128.57 6,407,207.59 15,377,298.21
63 Original Pool - Pre-Funding Account 53,510,393.37 23,948,707.52 3,741,985.55 8,980,765.32
64 Original Pool - Additonal Principal Reduction 2,133,461.89 954,836.09 149,193.14 358,063.53
-------------- ------------- ------------- -------------
65 Original Pool Total 143,000,000.00 64,000,000.00 10,000,000.00 24,000,000.00
-------------- ------------- ------------- -------------
66 Original Pool - Number of Loans 864
<CAPTION>
Class A4 Class A-5 Class A-6
-------- --------- ---------
<S> <C> <C> <C>
56 Weighted Note Rate - THIS Remittance
57 Weighted Note Rate - NEXT Remittance
58 Related Remittance Period for Libor Rate
59 Days in Related Period
60 Pass-Through Rate - THIS Remittance 7.740% 8.000% 8.300%
61 Weighted Average Remaining Term
62 Original Pool - Principal Balance 5,766,486.83 16,018,018.97 7,047,928.35
63 Original Pool - Pre-Funding Account 3,367,787.00 9,354,963.88 4,116,184.10
64 Original Pool - Additonal Principal Reduction 134,273.83 372,982.85 164,112.45
65 Original Pool Total 9,000,000.00 25,000,000.00 11,000,000.00
66 Original Pool - Number of Loans
Class A Overcollateralization Reconciliation
--------------------------------------------
<CAPTION>
Beg.of Month Current Month End of Month
------------- ------------- ------------
<C> <C> <C> <C>
67 Additional Principal Reduction, LTD 2,954,650.52 366,890.29 3,321,540.81
68 Cross Collateral Deposits, LTD 0.00 0.00 0.00
69 Less: Realized Losses, LTD 0.00 0.00 0.00
------------- ---------- -------------
70 Overcollateralization of Principal 2,954,650.52 366,890.29 3,321,540.81
============= ========== =============
71 Base Overcollateralization Required 7,430,833.00
72 Required Overcollateralization Amount 7,430,833.00
Current Month Subordinated Amount Beg.of Month Current Month End of Month
--------------------------------- ------------- ------------- ------------
73 Original Subordinated Amount 14,745,560.00 N/A 14,745,560.00
74 Less: Cumulative Realized Losses 0.00 0.00 0.00
75 Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
------------- ------------ -------------
76 Current Subordinated Amount 14,745,560.00 14,745,560.00
============= ============ =============
Nonrecoverable Advance Reconciliation
-------------------------------------
77 Beginning of Month 0.00
78 Current Month Nonrecoverable Advance 0.00
79 Less: Current Month Reimbursment 0.00
------------
80 End of Month 0.00
</TABLE>
<PAGE>
Page 4 of 4
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK, FSB
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1996-2 SUB-POOL 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF JUNE 1, 1996 LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1996-2 SUB-POOL 1
FOR SEPTEMBER 25, 1996, THE REMITTANCE DATE.
DUE PERIOD ENDED: SEPTEMBER 1, 1996
<TABLE>
<CAPTION>
Class Class Class
A1 A2 A3
-------------- -------------- --------------
<S> <C> <C> <C> <C>
81 Total Class Principal - Original Pool $143,000,000.00 $64,000,000.00 $10,000,000.00 $24,000,000.00
82 Interest Remittance Amount 792,877.77 279,136.37 61,237.06 151,767.92
83 Interest Rate Factor/1000 5.544600 4.361506 6.123706 6.323663
84 Total Principal Collections 572,386.17 572,386.17 0.00 0.00
85 Additional Principal Reduction 366,890.29 366,890.29 0.00 0.00
--------------- -------------- -------------- --------------
86 Principal Remittance Amount 939,276.46 939,276.46 0.00 0.00
87 Principal Payment Factor/1000 6.568367 14.676195 0.000000 0.000000
88 Current Month Ending Principal Factor 970.399290 934.121794 999.788654 999.788654
89 Prior Month Ending Principal Factor 976.967657 948.797989 999.788654 999.788654
<CAPTION>
Class Class Class
A4 A5 A6
------------- -------------- --------------
<S> <C> <C> <C>
81 Total Class Principal - Original Pool $9,000,000.00 $25,000,000.00 $11,000,000.00
82 Interest Remittance Amount 58,037.73 166,631.44 76,067.25
83 Interest Rate Factor/1000 6.448637 6.665258 6.915205
84 Total Principal Collections 0.00 0.00 0.00
85 Additional Principal Reduction 0.00 0.00 0.00
------------- -------------- --------------
86 Principal Remittance Amount 0.00 0.00 0.00
87 Principal Payment Factor/1000 0.000000 0.000000 0.000000
88 Current Month Ending Principal Factor 999.788654 999.788654 999.788654
89 Prior Month Ending Principal Factor 999.788654 999.788654 999.788654
</TABLE>
<PAGE>
Page 1 of 4
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK FSB,
DESIGNATED SERVICER
SERVICERS CERTIFICATE
1996-2 SUB POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF JUNE 01, 1996 AND THE INSURANCE AGREEMENT
DATED AS OF JUNE 19, 1996, LEE SERVICING COMPANY REPORTS
THE FOLLOWING INFORMATION PERTAINING TO SERIES 1996-2
SUB POOL 2 FOR SEPTEMBER 25, 1996, THE REMITTANCE DATE.
PERIOD ENDED: SEPTEMBER 1, 1996
1 Total Actual Principal Collections 1,116,974.24
2 Total Actual Interest Collections 599,473.86
3 Additional Proceeds 0.00
------------
4 Aggregate Amount Received: 1,716,448.10
Monthly Advance
5 Delinquent Interest 20,461.96
6 Compensating Interest 2,402.15
7 Amounts Held for Future Distributions 0.00
8 Supplemental Interest 0.00
------------
9 Available Remittance Amount: 1,739,312.21
10 Less: Service Fees 41,089.12
11 Expense Account Deposit 1,989.07
12 Deposits/Withdrawals for Cross Collaterlization 0.00
------------
13 Adjusted Remittance Amount: 1,696,234.02
Remaining Amount Available:
14 Adjusted Remittance Amount 1,696,234.02
15 Insured Payments 0.00
16 Insurance Account Deposit @ 13bp
the Ending Class A P-balance 8,957.16
17 Class Remittance Amounts 1,687,276.86
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>
Page 2 of 4
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK FSB,
DESIGNATED SERVICER
SERVICERS CERTIFICATE
1996-2 SUB POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF JUNE 01, 1996 AND THE INSURANCE AGREEMENT
DATED AS OF JUNE 19, 1996, LEE SERVICING COMPANY REPORTS
THE FOLLOWING INFORMATION PERTAINING TO SERIES 1996-2
SUB POOL 2 FOR SEPTEMBER 25, 1996, THE REMITTANCE DATE.
PERIOD ENDED: SEPTEMBER 1, 1996
<TABLE>
<CAPTION>
Total Class 2-A Class R
------------- ------------- ----------
<S> <C> <C> <C>
25 Number of Loans 687
26 Opening Loan Balance 83,798,462.64 83,798,462.64
27 Additional Principal Reduction, LTD 3,118,748.80 3,118,748.80
28 Realized Losses, LTD 0.00 0.00
29 Carryforward Amount 0.00 0.00
------------- -------------
30 Total Class Principal Balance 80,679,713.84 80,679,713.84
31 Pool Factor per Loan Balance 102.1932471% 102.1932471%
32 Factor per Class Balance 98.3898949% 98.3898949%
33 Excess Spread 184,636.78 184,636.78
34 Additional Principal due Class A (184,636.78) (184,636.78)
35 Deposits/Withdrawals for Cross Collaterlization 0.00 0.00
36 Interest Remittance 385,665.84 385,665.84
Principal Reductions:
37 Prepayments - Number 7 7
38 Prepayments - Dollar 1,045,687.00 1,045,687.00
39 Net Liquidation Proceeds 0.00 0.00
40 Curtailments 21,250.00 21,250.00
41 Normal and Excess Payments 50,037.24 50,037.24
------------- ------------- ----------
42 Total Principal Remittance 1,116,974.24 1,116,974.24
43 Additional Principal Reduction 184,636.78 184,636.78
------------- ------------- ----------
44 Total Remittance 1,687,276.86 1,687,276.86 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 # 680
Class Principal Balance - End of Month
49 Loan Balance 82,681,488.40 82,681,488.40
50 Additional Principal Reduction, LTD 3,303,385.58 3,303,385.58
51 Realized Losses, LTD 0.00 0.00
52 Carryforward Amount 0.00 0.00
------------- -------------
53 Total Class A Principal 79,378,102.82 79,378,102.82
54 Class Factor per Loan Balance 100.8310834% 100.8310834%
55 Class Factor per Class Balance 96.8025644% 96.8025644%
</TABLE>
<PAGE>
Page 3 of 4
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK FSB,
DESIGNATED SERVICER
SERVICERS CERTIFICATE
1996-2 SUB POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF JUNE 01, 1996 AND THE INSURANCE AGREEMENT
DATED AS OF JUNE 19, 1996, LEE SERVICING COMPANY REPORTS
THE FOLLOWING INFORMATION PERTAINING TO SERIES 1996-2
SUB POOL 2 FOR SEPTEMBER 25, 1996, THE REMITTANCE DATE.
PERIOD ENDED: SEPTEMBER 1, 1996
<TABLE>
<CAPTION>
Total Class A1
------------- --------------
<C> <C> <C> <C>
56 Weighted Note Rate This Remittance: 9.60053%
57 Weighted Note Rate Next Remittance: 9.63821%
58 Pass-Through Rate: 5.73625% 5.73625%
59 Related Remittance Period 26-Aug-96 thru 24-Sep-96
60 Days in Related Period: 30
61 Weighted Average Remaining Term 355.86
62 Original Pool - Principal Balance 53,157,223.06 53,157,223.06
63 Original Pool - Pre-Funding Account 31,641,122.34 31,641,122.34
64 Original Pool - Additional Principal Reduction 2,798,345.40 2,798,345.40
------------- --------------
65 Original Pool Total 82,000,000.00 82,000,000.00
73
66 Original Pool - Number of Loans 441
----------------------------------------------------------------------------------------------------------------
Class A OverCollateralization Reconciliation Beginning of Month Current Month End of Month
-------------------------------------------- ------------------ ------------- ------------
<C> <C> <C> <C>
67 Additional Principal Reduction, LTD 3,118,748.80 184,636.78 3,303,385.58
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 3,118,748.80 184,636.78 3,303,385.58
============= ============= ============
71 Base Overcollateralization Requirement 4,027,921.00
Current Month Subordinated Amount Beginning of Month Current Month End of Month
--------------------------------- ------------------ ------------- ------------
72 Original Subordinated Amount 9,327,818.00 N/A 9,327,818.00
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 9,327,818.00 9,327,818.00
============= ============= ============
76
Nonrecoverable Advance Reconciliation
-------------------------------------
77 Beginning of Month 0.00
78 Current Month Unpaid Nonrecoverable Advance 0.00
79 Less: Current Month Reimbursment 0.00
-------------
80 End of Month 0.00
=============
</TABLE>
<PAGE>
Page 4 of 4
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK FSB,
DESIGNATED SERVICER
SERVICERS CERTIFICATE
1996-2 SUB POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF JUNE 01, 1996 AND THE INSURANCE AGREEMENT
DATED AS OF JUNE 19, 1996, LEE SERVICING COMPANY REPORTS
THE FOLLOWING INFORMATION PERTAINING TO SERIES 1996-2
SUB POOL 2 FOR SEPTEMBER 25, 1996, THE REMITTANCE DATE.
PERIOD ENDED: SEPTEMBER 1, 1996
Class
Total A1
-------------- --------------
81 Total Class Principal - Original Pool $82,000,000.00 $82,000,000.00
82 Interest Remittance Amount 385,665.84 385,665.84
83 Interest Rate Factor / 1000 4.703242 4.703242
84 Total Principal Collections 1,116,974.24 1,116,974.24
85 Additional Principal Reduction 184,636.78 184,636.78
-------------- --------------
86 Principal Remittance Amount 1,301,611.02 1,301,611.02
87 Principal Payment Factor/1000 15.873305 15.873305
88 Principal Factor 968.025644 968.025644
89 Prior Month Principal Factor 983.898949 983.898949
