================================================================================
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 1996-4)
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 Janury 27, 1997 (a "Remittance Date") a scheduled remittance was made to
the Certificateholders with respect to AFC Mortgage Loan Asset Backed
Certificates, Series 1996-3, issued pursuant to a Pooling and Servicing
Agreement, dated as of December 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
1996-4 SUB-POOL 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF DECEMBER 1, 1996
LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1996-4 SUB-POOL 1
FOR JANUARY 27, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JANUARY 1, 1997
- ------------------------------------------------------------------------------
1 Total Actual Principal Collections 651,413.82
2 Total Actual Interest Collections 237,251.92
3 Additional Proceeds 0.00
------------------
4 Total Collections: 888,665.74
5 Pre-Funding Account Transfer 0.00
6 Interest Coverage Account Transfer 438,566.20
------------------
7 Aggregate Amount Received: 1,327,231.94
Monthly Advances
8 Delinquent Interest 507,845.82
9 Compensating Interest 905.79
10 Amounts Held for Future Distributions 0.00
11 Cross Collateral Deposit 0.00
12 Reserve Withdrawal per Sec. 6.14c 0.00
------------------
13 Available Remittance Amount: 1,835,983.55
14 Service Fees 37,630.98
15 Expense Account Deposit: 3,108.71
------------------
16 Adjusted Remittance Amount: 1,795,243.86
Remaining Amount Available:
17 Adjusted Remittance Amount 1,795,243.86
18 Insured Payments 0.00
19 Insurance Account Deposit @ 13 bp
the Ending Principal Balance 13,471.10
20 Cross Collateral Withdrawal 0.00
21 Class Remittance Amounts 1,781,772.76
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
- ------------------------------------------------------------------------------
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
1996-4 SUB-POOL 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF DECEMBER 1, 1996
LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1996-4 SUB-POOL 1 FOR JANUARY 27, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JANUARY 1, 1997
--------------------------------------------------------------------------------------------------------------------------
TOTAL CLASS A-1 CLASS A-2 CLASS A-3 CLASS A-4
----- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
29 Loans Outstanding - BOM 1414
30 Original Loan Balance 79,916,352.93 33,245,202.82 8,950,631.53 9,270,296.94 6,712,973.65
31 Pre-Funding Account Balance 45,083,647.07 18,754,797.18 5,049,368.47 5,229,703.06 3,787,026.35
32 Initial Overcollateralization 0.00 0.00 0.00 0.00 0.00
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 125,000,000.00 52,000,000.00 14,000,000.00 14,500,000.00 10,500,000.00
36 Pool Factor per Loan Balance 63.9330823% 26.5961623% 7.1605052% 7.4162376% 5.3703789%
37 Pool Factor per Class Balance 100.0000000% 100.0000000% 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 393,008.94 393,008.94
42 Interest Remittance @ Pass-Through Rates 737,350.00 323,916.67 75,016.67 79,870.83 58,800.00
PRINCIPAL ADDITIONS:
43 Number of loans 0
44 Transfers from Pre-Funding Account 0.00 0.00 0.00 0.00 0.00
PRINCIPAL REDUCTIONS:
45 Class 1A-7 Lockout Remittance 0.00
46 Prepayments - Number 7 7
47 Prepayments - Dollar 569,422.26 569,422.26 0.00 0.00 0.00
48 Net Liquidation Proceeds 0.00 0.00 0.00 0.00 0.00
49 Curtailments 3,758.22 3,758.22 0.00 0.00 0.00
50 Normal and Excess Payments 78,233.34 78,233.34 0.00 0.00 0.00
51 Pre-Funding Account Transfer 0.00 0.00 0.00 0.00 0.00
-----------------------------------------------------------------------------------
52 Total Principal Remittance 651,413.82 651,413.82 0.00 0.00 0.00
53 Additional Principal Reduction 393,008.94 393,008.94 0.00 0.00 0.00
-----------------------------------------------------------------------------------
54 Total Remittance 1,781,772.76 1,368,339.43 75,016.67 79,870.83 58,800.00
===================================================================================
55 Current Month Realized Loss - Number 0 0
56 Current Month Realized Loss - Dollar 0.00 0.00
CLASS PRINCIPAL BALANCE - EOM
57 Loans Outstanding - EOM 1407
58 Closing Loan Balance 79,264,939.11 32,593,789.00 8,950,631.53 9,270,296.94 6,712,973.65
59 Pre-Funding Account Balance 45,083,647.07 18,754,797.18 5,049,368.47 5,229,703.06 3,787,026.35
60 Additional Principal Reduction, LTD 393,008.94 393,008.94 0.00 0.00 0.00
61 Realized losses, LTD 0.00 0.00 0.00 0.00 0.00
-----------------------------------------------------------------------------------
62 Total Class Principal Balance 123,955,577.24 50,955,577.24 14,000,000.00 14,500,000.00 10,500,000.00
63 Pool Factor per Loan Balance 58.2973047% 26.0750312% 7.1605052% 7.4162376% 5.3703789%
64 Pool Factor per Class Balance 99.1644618% 97.9914947% 100.0000000% 100.0000000% 100.0000000%
--------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS A-5 CLASS A-6 CLASS A-7 CLASS R
--------- --------- --------- -------
<S> <C> <C> <C> <C>
29 Loans Outstanding - BOM
30 Original Loan Balance 7,352,304.47 7,991,635.29 6,393,308.23
31 Pre-Funding Account Balance 4,147,695.53 4,508,364.71 3,606,691.77
32 Initial Overcollateralization 0.00 0.00 0.00
33 Realized Losses, LTD 0.00 0.00 0.00
34 Carryforward Amount 0.00 0.00 0.00
-------------------------------------------
35 Total Class Principal Balance 11,500,000.00 12,500,000.00 10,000,000.00
36 Pool Factor per Loan Balance 5.8818436% 6.3933082% 5.1146466%
37 Pool Factor per Class Balance 100.0000000% 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 @ Pass-Through Rates 67,370.83 75,208.33 57,166.67
PRINCIPAL ADDITIONS:
43 Number of loans
44 Transfers from Pre-Funding Account 0.00 0.00 0.00
PRINCIPAL REDUCTIONS:
45 Class 1A-7 Lockout Remittance 0.00
46 Prepayments - Number
47 Prepayments - Dollar 0.00 0.00 0.00
48 Net Liquidation Proceeds 0.00 0.00 0.00
49 Curtailments 0.00 0.00 0.00
50 Normal and Excess Payments 0.00 0.00 0.00
51 Pre-Funding Account Transfer 0.00 0.00 0.00
----------------------------------------------------------
52 Total Principal Remittance 0.00 0.00 0.00
53 Additional Principal Reduction 0.00 0.00 0.00
----------------------------------------------------------
54 Total Remittance 67,370.83 75,208.33 57,166.67 0.00
==========================================================
55 Current Month Realized Loss - Number
56 Current Month Realized Loss - Dollar
CLASS PRINCIPAL BALANCE - EOM
57 Loans Outstanding - EOM
58 Closing Loan Balance 7,352,304.47 7,991,635.29 6,393,308.23
59 Pre-Funding Account Balance 4,147,695.53 4,508,364.71 3,606,691.77
60 Additional Principal Reduction, LTD 0.00 0.00 0.00
61 Realized losses, LTD 0.00 0.00 0.00
-------------------------------------------------
62 Total Class Principal Balance 11,500,000.00 12,500,000.00 10,000,000.00
63 Pool Factor per Loan Balance 5.8818436% 6.3933082% 5.1146466%
64 Pool Factor per Class Balance 100.0000000% 100.0000000% 100.0000000%
- ----------------------------------------------------------------------------------------------------------
</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
1996-4 SUB-POOL 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF DECEMBER 1, 1996
LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1996-4 SUB-POOL 1 FOR JANUARY 27, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JANUARY 1, 1997
-------------------------------------------------------------------------------------------------------------
TOTAL CLASS A-1 CLASS A-2 CLASS A-3
----- --------- --------- ---------
<S> <C> <C> <C> <C>
65 Weighted Note Rate - THIS Remittance 11.67341%
66 Weighted Note Rate - NEXT Remittance 11.67341%
67 Related Remittance Period for Libor Rate 19-Dec-96 thru 26-Jan-97
68 Days in Related Period 39
69 Pass-Through Rates 5.75000% 6.43% 6.61%
70 Weighted Average Remaining Term 213.63
71 Original Pool - Principal Balance 79,916,352.93 33,245,202.82 8,950,631.53 9,270,296.94
72 Original Pool - Pre-Funding Account 45,083,647.07 18,754,797.18 5,049,368.47 5,229,703.06
73 Original Pool - Additional Principal Reduction 0.00 0.00 0.00 0.00
----------------------------------------------------
74 Original Pool Total 125,000,000.00 52,000,000.00 14,000,000.00 14,500,000.00
75 Original Pool - Number of Loans 1414
------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS A-4 CLASS A-5 CLASS A-6 CLASS A-7
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
65 Weighted Note Rate - THIS Remittance
66 Weighted Note Rate - NEXT Remittance
67 Related Remittance Period for Libor Rate
68 Days in Related Period
69 Pass-Through Rates 6.72% 7.03% 7.22% 6.86%
70 Weighted Average Remaining Term
71 Original Pool - Principal Balance 6,712,973.65 7,352,304.47 7,991,635.29 6,393,308.23
72 Original Pool - Pre-Funding Account 3,787,026.35 4,147,695.53 4,508,364.71 3,606,691.77
73 Original Pool - Additional Principal Reduction 0.00 0.00 0.00 0.00
-----------------------------------------------------------
74 Original Pool Total 10,500,000.00 11,500,000.00 12,500,000.00 10,000,000.00
75 Original Pool - Number of Loans
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
CLASS A OVERCOLLATERALIZATION RECONCILIATION
<CAPTION>
Beg.of Month Current Month End of Month
--------------------------------------------
<S> <C> <C> <C>
76 Additional Principal Reduction, LTD 0.00 393,008.94 393,008.94
77 Cross Collateral Deposits 0.00 0.00 0.00
78 Less: Realized Losses, LTD 0.00 0.00 0.00
--------------------------------------------
79 Overcollateralization of Principal 0.00 393,008.94 393,008.94
============================================
80 Base Overcollateralization Required 5,375,000.00
81 Required Overcollateralization Amount 5,375,000.00
CURRENT MONTH SUBORDINATED AMOUNT Beg.of Month Current Month End of Month
--------------------------------------------
82 Original Subordinated Amount 14,862,500.00 N/A 14,862,500.00
83 Less: Cumulative Realized Losses 0.00 0.00 0.00
84 Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
--------------------------------------------
85 Current Subordinated Amount 14,862,500.00 14,862,500.00
============================================
NONRECOVERABLE ADVANCE RECONCILIATION
86 Beginning of Month 0.00
87 Current Month Unpaid Nonrecoverable Advance 0.00
88 Less: Current Month Reimbursement 0.00
---------------
89 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
1996-4 SUB-POOL 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF DECEMBER 1, 1996
LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1996-4 SUB-POOL 1 FOR JANUARY 27, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JANUARY 1, 1997
---------------------------------------------------------------------------------------------------------
CLASS CLASS CLASS
TOTAL A1 A2 A3
------------------------------------------------------------------
<S> <C> <C> <C> <C>
90 Total Class Principal - Original Pool $125,000,000.00 $52,000,000.00 $14,000,000.00 $14,500,000.00
91 Interest Remittance Amount 737,350.00 323,916.67 75,016.67 79,870.83
92 Interest Rate Factor / 1000 5.898800 6.229167 5.358334 5.508333
93 Total Principal Collections 651,413.82 651,413.82 0.00 0.00
94 Prefunding Account Transfer 0.00 0.00 0.00 0.00
95 Additional Principal Reduction 393,008.94 393,008.94 0.00 0.00
------------------------------------------------------------------
96 Principal Remittance Amount 1,044,422.76 1,044,422.76 0.00 0.00
97 Principal Payment Factor/1000 8.355382 20.085053 0.000000 0.000000
98 Principal Factor 991.644618 979.914947 1,000.000000 1,000.000000
---------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS CLASS CLASS CLASS
A4 A5 A6 A7
-----------------------------------------------------------
<S> <C> <C> <C> <C>
90 Total Class Principal - Original Pool $10,500,000.00 $11,500,000.00 $12,500,000.00 $10,000,000.00
91 Interest Remittance Amount 58,800.00 67,370.83 75,208.33 57,166.67
92 Interest Rate Factor / 1000 5.600000 5.858333 6.016666 5.716667
93 Total Principal Collections 0.00 0.00 0.00 0.00
94 Prefunding Account Transfer 0.00 0.00 0.00 0.00
95 Additional Principal Reduction 0.00 0.00 0.00 0.00
------------------------------------------------------------
96 Principal Remittance Amount 0.00 0.00 0.00 0.00
97 Principal Payment Factor/1000 0.000000 0.000000 0.000000 0.000000
98 Principal Factor 1,000.000000 1,000.000000 1,000.000000 1,000.000000
- ----------------------------------------------------------------------------------------------------------
</TABLE>
Page 4 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK FSB,
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1996-4 SUB POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF DECEMBER 01, 1996 AND THE INSURANCE AGREEMENT
DATED AS OF DECEMBER 19, 1996, LEE SERVICING COMPANY
REPORTS THE FOLLOWING INFORMATION PERTAINING TO
SERIES 1996-4 SUB POOL 2 FOR JANUARY 27, 1997, THE REMITTANCE DATE.
PERIOD ENDED: JANUARY 1, 1997
-------------------------------------------------------------------------
1 Total Actual Principal Collections 280,404.99
2 Total Actual Interest Collections 151,009.52
3 Additional Proceeds 0.00
------------------
4 Total Collections: 431,414.51
5 Pre-Funding Account Transfer 0.00
6 Interest Coverage Account Transfer 311,924.53
------------------
7 Aggregate Amount Received: 743,339.04
Monthly Advance
8 Delinquent Interest 332,458.77
9 Compensating Interest 390.61
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: 1,076,188.42
14 Less: Service Fees 29,669.26
15 Less: Expense Account Deposit 2,367.99
16 Cross Collateral Deposit 0.00
------------------
17 Adjusted Remittance Amount: 1,044,151.17
Remaining Amount Available:
18 Adjusted Remittance Amount 1,044,151.17
19 Insured Payments 0.00
20 Insurance Account Deposit @ 13bp
the Ending Class Principal Balance 10,261.29
21 Class Remittance Amounts 1,033,889.88
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
-------------------------------------------------------------------------
Page 1 of 4
<PAGE>
<TABLE>
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK FSB,
DESIGNATED SERVICER
SERVICER' CERTIFICATE
1996-4 SUB POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF DECEMBER 01, 1996
AND THE INSURANCE AGREEMENT DATED AS OF DECEMBER 19, 1996, LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1996-4 SUB POOL 2 FOR JANUARY 27, 1997, THE REMITTANCE DATE.
PERIOD ENDED: JANUARY 1, 1997
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
TOTAL CLASS 2-A CLASS R
----- --------- -------
<S> <C> <C> <C>
30 Number of Loans 455
31 Original Principal Balance 60,081,756.98 60,081,756.98
32 Original Pre-Funding Account Balance 36,906,502.34 36,906,502.34
33 Initial Overcollateralization 1,988,259.32 1,988,259.32
34 Realized Losses, LTD 0.00 0.00
35 Carryforward Amount 0.00 0.00
-----------------------------------
36 Opening Class Principal Balance 95,000,000.00 95,000,000.00
37 Pool Factor per Loan Balance 63.2439547% 63.2439547%
38 Pool Factor per Class Balance 100.0000000% 100.0000000%
39 Excess Spread 0.00 0.00
40 Additional Principal due Class A 151,936.97 151,936.97
41 Cross Collateral Deposit 0.00 0.00
42 Cross Collateral Withdrawal 0.00 0.00
43 Interest Remittance 601,547.92 601,547.92
PRINCIPAL ADDITIONS:
44 Number of Loans 0
45 Transfers from Pre-Funding Account 0.00 0.00
PRINCIPAL REDUCTIONS:
46 Prepayments - Number 1 1
47 Prepayments - Dollar 254,767.34 254,767.34
48 Net Liquidation Proceeds 0.00 0.00
49 Curtailments 0.00 0.00
50 Normal and Excess Payments 25,637.65 25,637.65
51 Pre-Funding Account Transfer 0.00 0.00
-------------------------------------------------------
52 Total Principal Remittance 280,404.99 280,404.99
53 Additional Principal Reduction 151,936.97 151,936.97
=======================================================
54 Total Remittance 1,033,889.88 1,033,889.88 0.00
=======================================================
55 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 # 454
59 Closing Loan Balance 59,801,351.99 59,801,351.99
60 Pre-Funding Account Balance 36,906,502.34 36,906,502.34
61 Additional Principal Reduction, LTD 2,140,196.29 2,140,196.29
62 Realized Losses, LTD 0.00 0.00
63 Carryforward Amount 0.00 0.00
-----------------------------------
64 Closing Class Principal Balance 94,567,658.04 94,567,658.04
65 Pool Factor per Loan Balance 62.9487916% 62.9487916%
66 Pool Factor per Class Balance 99.5449032% 99.5449032%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2 of 4
<PAGE>
<TABLE>
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK FSB,
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1996-4 SUB POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF DECEMBER 01, 1996
AND THE INSURANCE AGREEMENT DATED AS OF DECEMBER 19, 1996, LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1996-4 SUB POOL 2 FOR JANUARY 27, 1997, THE REMITTANCE DATE.
PERIOD ENDED: JANUARY 1, 1997
---------------------------------------------------------------------------------------------------------
<CAPTION>
TOTAL CLASS A1
----- --------
<S> <C> <C> <C>
67 Weighted Note Rate - This Remittance: 10.14205%
68 Weighted Note Rate - Next Remittance: 10.14205%
69 Pass-Through Rate: 5.84500% 5.84500%
70 Related Remittance Period: 19-Dec-96 thru 26-Jan-97
71 Days in Related Period: 39
72 Weighted Average Remaining Term 357.60
73 Original Pool - Principal Balance 60,081,756.98 60,081,756.98
74 Original Pool - Pre-Funding Account Balance 36,906,502.34 36,906,502.34
75 Original Pool - Initial Overcollateralization 1,988,259.32 1,988,259.32
-----------------------------------
76 Original Pool - Class Principal Balance 95,000,000.00 95,000,000.00
77 Original Pool - Number of Loans 455
- ----------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS A OVERCOLLATERALIZATION RECONCILIATION
Beginning of Month Current Month End of Month
-----------------------------------------------------
<S> <C> <C> <C>
78 Initial Overcollateralization 0.00 151,936.97 151,936.97
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 0.00 151,936.97 151,936.97
=====================================================
82 Base Overcollateralization Requirement 4,849,413.00
83 Required Overcollateralization 4,849,413.00
CURRENT MONTH SUBORDINATED AMOUNT Beginning of Month Current Month End of Month
-----------------------------------------------------
84 Original Subordinated Amount 10,717,202.65 N/A 10,717,202.65
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 10,717,202.65 10,717,202.65
=====================================================
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>
Page 3 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK FSB,
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1996-4 SUB POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT
DATED AS OF DECEMBER 01, 1996 AND THE INSURANCE AGREEMENT
DATED AS OF DECEMBER 19, 1996, LEE SERVICING COMPANY
REPORTS THE FOLLOWING INFORMATION PERTAINING TO
SERIES 1996-4 SUB POOL 2 FOR JANUARY 27, 1997, THE REMITTANCE DATE.
PERIOD ENDED: JANUARY 1, 1997
--------------------------------------------------------------------------
CLASS
A1
-------------------------------
92 Total Class Principal - Original Pool $95,000,000.00 $95,000,000.00
93 Interest Remittance Amount 601,547.92 601,547.92
94 Interest Rate Factor / 1000 6.332083 6.332083
95 Total Principal Collections 280,404.99 280,404.99
96 Prefunding Account Transfer 0.00 0.00
97 Additional Principal Reduction 151,936.97 151,936.97
-------------------------------
98 Principal Remittance Amount 432,341.96 432,341.96
99 Principal Payment Factor/1000 4.550968 4.550968
100 Principal Factor 995.449032 995.449032
---------------------------------------------------------------------------
Page 4 of 4
