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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) January 27, 1997
SUPERIOR BANK FSB (as depositor under the Pooling and Servicing Agreement, dated
as of December 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 33-92770 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
--------------
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<PAGE>
Item 5. OTHER EVENTS
On January 27, 1997 (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 Bank 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 January, 1997.
<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.S.B.
By: /s/ WILLIAM C. BRACKEN
---------------------------------
Name: William C. Bracken
Title: Executive Vice President
Dated: January, 1997
<PAGE>
EXHIBITS TABLE
21.1 Monthly Remittance Report for the month of January, 1997.
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 JANUARY 27, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JANUARY 1, 1997
- --------------------------------------------------------------------------------
1 Total Actual Principal Collections 956,411.70
2 Total Actual Interest Collections 682,537.48
3 Additional Proceeds 0.00
------------
4 Aggregate Amount Received: 1,638,949.18
Monthly Advance
5 Delinquent Interest 2,550.06
6 Compensating Interest 4,002.53
7 Amounts Held for Future Distributions 0.00
------------
8 Available Remittance Amount: 1,645,501.77
9 Less: Service Fees 39,331.48
10 Less: Expense Account Deposit: 1,738.95
11 Plus: Cross Collateral Deposit 232,820.12
------------
12 Adjusted Remittance Amount: 1,837,251.46
Remaining Amount Available:
13 Adjusted Remittance Amount 1,837,251.46
14 Insured Payments 0.00
15 Cross Collateral Withdrawal 0.00
16 Insurance Account Deposit @ 13 bp 7,820.09
the Ending Principal balance
17 Class Remittance Amounts 1,829,431.37
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
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1 of 4
<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 JANUARY 27, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JANUARY 1, 1997
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A1 CLASS A2 CLASS A3
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
25 Number of Loans 1218
26 Opening Loan balance 73,147,717.59 12,149,575.28 34,998,934.11 7,499,771.60
27 Additional Principal Reduction 2,627,357.23 2,627,357.23 0.00 0.00
28 Realized Losses, LTD 0.00 0.00 0.00 0.00
29 Carryforward amount 0.00 0.00 0.00 0.00
------------- ------------- ------------- ------------
30 Opening Class Principal Balance 70,520,360.36 9,522,218.05 34,998,934.11 7,499,771.60
31 Pool Factor per Loan Balance 88.1297803% 14.6380425% 42.1673905% 9.0358694%
32 Factor per Class Balance 84.9642897% 11.4725519% 42.1673905% 9.0358694%
33 Excess Spread 0.00
34 Additional Principal due Class A 226,389.87 226,389.87
35 Cross Collateral Deposit 232,820.12 232,820.12
36 Cross Collateral Withdrawal 0.00
37 Interest Remittance @ Class Yield 413,809.68 51,737.38 199,493.92 44,498.64
Principal Reductions:
38 Prepayments -- Number 19 19
39 Prepayments -- Dollar 866,218.87 866,218.87 0.00 0.00
40 Net Liquidation Proceeds 22,421.00 22,421.00 0.00 0.00
41 Curtailments 0.00 0.00 0.00 0.00
42 Normal and Excess Payments 67,771.83 67,771.83 0.00 0.00
------------- ------------- ------------- ------------
43 Total Principal Remittance 956,411.70 956,411.70 0.00 0.00
44 Additional Principal Reduction 459,209.99 459,209.99 0.00 0.00
------------- ------------- ------------- ------------
45 Total Remittance 1,829,431.37 1,467,359.07 199,493.92 44,498.64
============= ============= ============= ============
46 Current Month Realized Loss -- Number 1 1
47 Current Month Realized Loss -- Dollar 5,875.50 5,875.50
Class Principal Balance Reconciliation
48 Number of Loans 1198
49 Loan balance 72,185,430.39 11,187,288.08 34,998,934.11 7,499,771.60
50 Additional Principal Reduction, LTD 3,086,567.22 3,086,567.22 0.00 0.00
51 Realized Losses, LTD 5,875.50 5,875.50 0.00 0.00
------------- ------------- ------------- ------------
52 Ending Class Principal Balance 69,104,738.67 8,106,596.36 34,998,934.11 7,499,771.60
53 Class Factor per Loan Balance 86.9703981% 13.4786603% 42.1673905% 9.0358694%
54 Class Factor per Class Balance 83.2587213% 9.7669836% 42.1673905% 9.0358694%
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
CLASS A4 CLASS A5 CLASS R
------------ ------------ ------------
<S> <C> <C>
25 Number of Loans
26 Opening Loan balance 9,999,695.46 8,499,741.14
27 Additional Principal Reduction 0.00 0.00
28 Realized Losses, LTD 0.00 0.00
29 Carryforward amount 0.00 0.00
------------ ------------
30 Opening Class Principal Balance 9,999,695.46 8,499,741.14
31 Pool Factor per Loan Balance 12.0478259% 10.2406520%
32 Factor per Class Balance 12.0478259% 10.2406520%
33 Excess Spread 0.00
34 Additional Principal due Class A
35 Cross Collateral Deposit
36 Cross Collateral Withdrawal 0.00
37 Interest Remittance @ Class Yield 62,831.42 55,248.32
Principal Reductions:
38 Prepayments -- Number
39 Prepayments -- Dollar 0.00 0.00
40 Net Liquidation Proceeds 0.00 0.00
41 Curtailments 0.00 0.00
42 Normal and Excess Payments 0.00 0.00
------------ ------------ ------------
43 Total Principal Remittance 0.00 0.00
44 Additional Principal Reduction 0.00 0.00
------------ ------------ ------------
45 Total Remittance 62,831.42 55,248.32 0.00
============ ============ ============
46 Current Month Realized Loss -- Number
47 Current Month Realized Loss -- Dollar
Class Principal Balance Reconciliation
48 Number of Loans
49 Loan balance 9,999,695.46 8,499,741.14
50 Additional Principal Reduction, LTD 0.00 0.00
51 Realized Losses, LTD 0.00 0.00
------------ ------------
52 Ending Class Principal Balance 9,999,695.46 8,499,741.14
53 Class Factor per Loan Balance 12.0478259% 10.2406520%
54 Class Factor per Class Balance 12.0478259% 10.2406520%
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</TABLE>
2 of 4
<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 JANUARY 27, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JANUARY 1, 1997
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A1 CLASS A2 CLASS A3
----- -------- -------- --------
<S> <C> <C> <C> <C>
55 Weighted Note Rate -- THIS remittance 11.30971%
56 Weighted Note Rate -- NEXT remittance 11.30283%
57 Pass-Through Rate -- THIS remittance 6.520% 6.840% 7.120%
58 Weighted Average Remaining Term 214.67
59 Original Pool -- Principal Balance 52,491,569.72 13,913,428.12 22,134,999.28 4,743,214.13
60 Original Pool -- Pre-Funding Account 30,508,430.28 8,086,571.88 12,865,000.72 2,756,785.87
61 Original Pool -- Additional Principal Reduction 0.00 0.00 0.00 0.00
------------- ------------- ------------- ------------
62 Original Pool Total 83,000,000.00 22,000,000.00 35,000,000.00 7,500,000.00
63
63 Original Pool -- Number of Loans 864
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A4 CLASS A5
-------- --------
<S> <C> <C>
55 Weighted Note Rate -- THIS remittance
56 Weighted Note Rate -- NEXT remittance
57 Pass-Through Rate -- THIS remittance 7.540% 7.800%
58 Weighted Average Remaining Term
59 Original Pool -- Principal Balance
60 Original Pool -- Pre-Funding Account 6,324,285.51 5,375,642.68
61 Original Pool -- Additional Principal Reduction 3,675,714.49 3,124,357.32
0.00 0.00
------------- ------------
62 Original Pool Total 10,000,000.00 8,500,000.00
63 Original Pool -- Number of Loans
- ------------------------------------------------------------------------------------------------------------------------------
CLASS A OVERCOLLATERALIZATION RECONCILIATION Beginning of Month Current Month End of Month
------------------ ------------- ------------
<S> <C> <C> <C>
64 Additional Principal Reduction, LTD 2,170,656.57 226,389.87 2,397,046.44
65 Cross Collateral Deposit, LTD 456,700.66 232,820.12 689,520.78
66 Less: Realized Losses, LTD 0.00 5,875.50 5,875.50
------------ ---------- ------------
67 Overcollateralization of Principal 2,627,357.23 453,334.49 3,080,691.72
============ ========== ============
68 Base Overcollateralization Requirement 4,150,000.00
69 Required Overcollateralization Amount 4,150,000.00
CURRENT MONTH SUBORDINATED AMOUNT Beginning of Month Current Month End of Month
------------------ ------------- ------------
70 Original Subordinated Amount 8,798,000.00 N/A 8,798,000.00
71 Less: Cumulative Realized Losses 0.00 5,875.50 5,875.50
72 Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
------------ ---------- ------------
73 Current Subordinated Amount 8,798,000.00 8,792,124.50
============ ========== ============
NONRECOVERABLE ADVANCE RECONCILIATION
74 Beginning of Month 0.00
75 Current Month Unpaid Nonrecoverable Advance 0.00
76 Less: Current Month Reimbursement 0.00
----------
77 End of Month 0.00
==========
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
3 of 4
<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 JANUARY 27, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JANUARY 1, 1997
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Class Class Class
A1 A2 A3
------- ------- ------
<S> <C> <C> <C> <C>
78 Total Class Principal -- Original Pool $83,000,000.00 $22,000,000.00 $35,000,000.00 $7,500,000.00
79 Interest Remittance Amount 413,809.68 51,737.38 199,493.92 44,498.64
80 Interest Rate Factor/1000 4.985659 2.351699 5.699826 5.933152
81 Total Principal Collections 956,411.70 956,411.70 0.00 0.00
82 Additional Principal Reduction 459,209.99 459,209.99 0.00 0.00
-------------- -------------- -------------- -------------
83 Principal Remittance Amount 1,415,621.69 1,415,621.69 0.00 0.00
84 Principal Payment Factor/1000 17.055683 64.346440 0.000000 0.000000
85 Principal Factor 832.587213 368.481653 999.969546 999.969546
86 Prior Month Principal Factor 849.642896 432.828093 999.969546 999.969546
- --------------------------------------------------------------------------------------------------------------------------
Class Class
A4 A5
------- -------
<S> <C> <C>
78 Total Class Principal -- Original Pool $10,000,000.00 $ 8,500,000.00
79 Interest Remittance Amount 62,831.42 55,248.32
80 Interest Rate Factor/1000 6.283142 6.499802
81 Total Principal Collections 0.00 0.00
82 Additional Principal Reduction 0.00 0.00
-------------- --------------
83 Principal Remittance Amount 0.00 0.00
84 Principal Payment Factor/1000 0.000000 0.000000
85 Principal Factor 999.969546 999.969546
86 Prior Month Principal Factor 999.969546 999.969546
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
4 of 4
<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 1, 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 JANUARY 27, 1997, THE REMITTANCE DATE.
PERIOD ENDED: JANUARY 1, 1997
- --------------------------------------------------------------------------------
1 Total Actual Principal Collections 3,131,000.44
2 Total Actual Interest Collections 594,110.94
3 Additional Proceeds 0.00
------------
4 Total Collections 3,725,111.38
Monthly Advance
5 Delinquent Interest 15,359.61
6 Compensating Interest 9,427.87
7 Amounts Held for Future Distributions 0.00
8 Supplemental Interest 0.00
------------
9 Available Remittance Amount: 3,749,898.86
10 Less: Service Fees 35,311.61
11 Less: Expense Account Deposit 1,518.48
12 Cross Collateral Deposit 0.00
------------
13 Adjusted Remittance Amount: 3,713,068.77
Remaining Amount Available:
14 Adjusted Remittance Amount 3,713,068.77
15 Insured Payments 0.00
16 Cross Collateral Withdrawal 232,820.12
17 Insurance Account Deposit @ 13bp 7,019.70
the ending Class A P-balance
18 Class Remittance Amounts 3,473,228.95
19 Non-Recoverable Advances Not
Previously Reimbursed 0.00
------------
20 Total Remaining Amount Available: 0.00
============
Amount of Reimbursements Pursuant to Sec. 5.04
21 Servicing Fee 0.00
22 Monthly Advances and Servicer Advances 0.00
23 Other Mortgage Payments 0.00
24 Interest Earned on P&I Deposits 0.00
25 Additional Servicing Compensation 0.00
- --------------------------------------------------------------------------------
Page 1 of 4
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK, FSB
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1996-1 SUB-POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF MARCH 1, 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 JANUARY 27, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JANUARY 1, 1997
- -----------------------------------------------------------------------------------------------------------------
TOTAL CLASS 2-A CLASS R
----- --------- -------
<S> <C> <C> <C>
26 Number of Loans 596
27 Opening Loan Balance 67,928,261.96 67,928,261.96
28 Additional Principal Reduction, LTD 4,058,157.00 4,058,157.00
29 Realized Losses, LTD 0.00 0.00
30 Carryforward Amount 0.00 0.00
------------- -------------
31 Opening Class Principal Balance 63,870,104.96 63,870,104.96
32 Pool Factor per Loan Balance 81.8412795% 81.8412795%
33 Factor per Class Balance 76.9519337% 76.9519337%
34 Excess Spread 232,820.12 232,820.12
35 Additional Principal due Class A 0.00 0.00
36 Cross Collateral Deposit 0.00 0.00
37 Cross Collateral Withdrawal 232,820.12 232,820.12
38 Interest Remittance 342,228.51 342,228.51
Principal Reductions:
39 Prepayments -- Number 28 28
40 Prepayments -- Dollar 3,048,545.57 3,048,545.57
41 Net Liquidation Proceeds 0.00 0.00
42 Curtailments 55,294.03 55,294.03
43 Normal and Excess Payments 27,160.84 27,160.84
------------- ------------- ----------
44 Total Principal Remittance 3,131,000.44 3,131,000.44
45 Additional Principal Reduction 0.00 0.00
------------- ------------- ----------
46 Total Remittance 3,473,228.95 3,473,228.95 (0.00)
============= ============= ==========
47 Carryforward Amount 0.00
48 Current Month Realized Loss -- Number 0 0
49 Current Month Realized Loss -- Dollar 0.00 0.00
Class Principal Balance -- End of Month
50 Number of Loans $ 568
51 Closing Loan Balance 64,797,261.52 64,797,261.52
52 Additional Principal Reduction, LTD 4,058,157.00 4,058,157.00
53 Realized Losses, LTD 0.00 0.00
54 Carryforward Amount 0.00 0.00
------------- -------------
55 Closing Class A Principal Balance 60,739,104.52 60,739,104.52
56 Class Factor per Loan Balance 78.0689898% 78.0689898%
57 Class Factor per Class Balance 73.1796440% 73.1796440%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2 of 4
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK, FSB
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1996-1 SUB-POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF MARCH 1, 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 JANUARY 27, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JANUARY 1, 1997
- -----------------------------------------------------------------------------------------------------------------
TOTAL CLASS A1
----- --------
<S> <C> <C> <C>
58 Weighted Note Rate -- THIS Remittance: 10.96074%
59 Weighted Note Rate -- NEXT Remittance: 10.98809%
60 Pass-Through Rate: 6.02797% 6.02797%
61 Related Remittance Period 26-Dec-96 thru 26-Jan-97
62 Days in Related Period: 32
63 Weighted Average Remaining Term 349.29
64 Original Pool -- Principal Balance 57,027,110.90 57,027,110.90
65 Original Pool -- Pre-Funding Account 28,407,783.59 28,407,783.59
66 Original Pool -- Additional Principal Reduction 2,434,894.49 2,434,894.49
------------- -------------
67 Original Pool Total 83,000,000.00 83,000,000.00
68 Original Pool -- Number of Loans 318
- -----------------------------------------------------------------------------------------------------------------
CLASS A OVERCOLLATERALIZATION RECONCILIATION
Beginning of Month Current Month End of Month
------------------ ------------- ------------
69 Additional Principal Reduction, LTD 4,058,157.00 0.00 4,058,157.00
70 Cross Collateral Deposit, LTD 0.00 0.00 0.00
71 Less: Realized Losses, LTD 0.00 0.00 0.00
------------ ---- ------------
72 Overcollateralization of Principal 4,058,157.00 0.00 4,058,157.00
============ ==== ============
73 Base Overcollateralization Requirement 4,058,157.00
CURRENT MONTH SUBORDINATED AMOUNT Beginning of Month Current Month End of Month
------------------ ------------- ------------
74 Original Subordinated Amount 9,269,686.00 N/A 9,269,686.00
75 Less: Cumulative Realized Losses 0.00 0.00 0.00
76 Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
------------ ---- ------------
77 Current Subordinated Amount 9,269,686.00 9,269,686.00
============ ==== ============
NONRECOVERABLE ADVANCE RECONCILIATION
78 Beginning of Month 0.00
79 Current Month Unpaid Nonrecoverable Advance 0.00
80 Less: Current Month Reimbursement 0.00
------------
81 End of Month 0.00
============
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3 of 4
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK, FSB
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1996-1 SUB-POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF MARCH 1, 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 JANUARY 27, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JANUARY 1, 1997
- -----------------------------------------------------------------------------------------------------------------
CLASS
TOTAL A1
----- ------
<S> <C> <C>
82 Total Class Principal -- Original Pool $83,000,000.00 $83,000,000.00
83 Interest Remittance Amount 342,228.51 342,228.51
84 Interest Rate Factor/1000 4.123235 4.123235
85 Total Principal Collections 3,131,000.44 3,131,000.44
86 Additional Principal Reduction 0.00 0.00
-------------- --------------
87 Principal Remittance Amount 3,131,000.44 3,131,000.44
88 Principal Payment Factor/1000 37.722897 37.722897
89 Principal Factor 731.796440 731.796440
90 Prior Month Principal Factors 769.519337 769.519337
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
Page 4 of 4
