================================================================================
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, 1997
SUPERIOR BANK FSB (as depositor under the Pooling and Servicing Agreement, dated
as of June 1, 1997, providing for the issuance of AFC Mortgage Loan Asset
Backed Certificates, Series 1997-2)
SUPERIOR BANK FSB
------------------------------------------------------
(Exact name of registrant as specified in its charter)
UNITED STATES 333-21485 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, 1997 (a "Remittance Date") a scheduled remittance was made to
the Certificateholders with respect to AFC Mortgage Loan Asset Backed
Certificates, Series 1997-2, issued pursuant to a Pooling and Servicing
Agreement, dated as of June 1, 1997, 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 July, 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: July, 1997
<PAGE>
EXHIBITS TABLE
21.1 Monthly Remittance Report for the month of July, 1997.
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK, FSB
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1997-2 SUB-POOL 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF JUNE 1, 1997
LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1997-2 SUB-POOL 1 FOR JULY 25, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JULY 1, 1997
====================================================================================================================================
<S> <C>
1 Total Actual Principal Collections 923,988.38
2 Total Actual Interest Collections 220,225.57
3 Less: Service Fees Previously Remitted 12,048.02
4 Additional Proceeds 0.00
------------
5 Total Collections: 1,132,165.93
Pre-Funding Account Transfer 0.00
7 Interest Coverage Account Transfer 379,687.13
------------
8 Aggregate Amount Received: 1,511,853.06
MONTHLY ADVANCES
----------------
9 Delinquent Interest 642,513.79
10 Compensating Interest 2,564.72
11 Cross Collateral Deposit 0.00
12 Reserve Withdrawal per Sec. 6.14c 0.00
------------
13 Available Remittance Amount: 2,156,931.57
FEES
----
14 Expense Account Deposit: 3,338.05
------------
15 Adjusted Remittance Amount: 2,153,593.52
REMAINING AMOUNT AVAILABLE:
---------------------------
16 Adjusted Remittance Amount 2,153,593.52
17 Insured Payments 0.00
18 Supplemental Interest Due 0.00
19 Insurance Account Deposit @ 13 bp
the Ending Principal Balance 14,464.88
20 Cross Collateral Withdrawal 0.00
21 Class Remittance Amounts 2,139,128.64
22 Supplemental Interest not Previously
Reimbursed 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
====================================================================================================================================
</TABLE>
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
1997-2 SUB-POOL 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF JUNE 1, 1997
LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1997-2 SUB-POOL 1 FOR JULY 25, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JULY 1, 1997
====================================================================================================================================
TOTAL CLASS A-1 CLASS A-2 CLASS A-3
-------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
30 Loans Outstanding - BOM 1674
31 Opening Loan Balance 94,729,249.31 35,625,326.78 10,124,599.82 16,897,607.98
32 Pre-Funding Account Balance 40,937,753.72 15,395,676.25 4,375,400.18 7,302,392.02
33 Initial Overcollateralization 1,221,003.03 1,221,003.03 0.00 0.00
34 Realized Losses, LTD 0.00 0.00 0.00
35 Carryforward Amount 0.00 0.00 0.00 0.00
-------------- ------------- ------------- -------------
36 Total Class Principal Balance 134,446,000.00 49,800,000.00 14,500,000.00 24,200,000.00
37 Pool Factor per Loan Balance 70.4589570% 26.4978704% 7.5306070% 12.5683233%
38 Pool Factor per Class Balance 100.0000000% 37.0408937% 10.7849992% 17.9997917%
39 Excess Spread 0.00
40 Cross Collateral Withdrawal 0.00
41 Cross Collateral Deposit 0.00 0.00
42 Additional Principal due Class A 489,578.49 489,578.49
43 Interest Remittance @ Pass-Through Rates 725,561.77 241,011.25 80,595.83 136,326.67
44 Supplemental Interest Remittance 0.00 0.00 0.00 0.00
PRINCIPAL ADDITIONS:
--------------------
45 Number of loans 252
46 Transfers from Pre-Funding Account 13,084,214.99 4,920,649.51 1,398,432.29 2,333,935.27
PRINCIPAL REDUCTIONS:
---------------------
47 Class 1A-5 Lockout Remittance 0.00
48 Prepayments - Number 10 10
49 Prepayments - Dollar 775,585.26 775,585.26 0.00 0.00
50 Net Liquidation Proceeds 0.00 0.00 0.00 0.00
51 Curtailments 14, 219.25 14,219.25 0.00 0.00
52 Normal and Excess Payments 134,183.87 134,183.87 0.00 0.00
53 Pre-Funding Account Transfer 0.00 0.00 0.00 0.00
-------------- ------------- ------------- -------------
54 Total Principal Remittance 923,988.38 923,988.38 0.00 0.00
55 Additional Principal Reduction 489,578.49 489,578.49 0.00 0.00
-------------- ------------- ------------- -------------
56 Total Remittance 2,139,128.64 1,654,578.12 80,595.83 136,326.67
============== ============= ============= =============
57 Current Month Realized Loss - Number 0 0
58 Current Month Realized Loss - Dollar 0.00 0.00
CLASS PRINCIPAL BALANCE - EOM
-----------------------------
59 Loans Outstanding - EOM 1916
60 Closing Loan Balance 106,889,475.92 39,621,987.91 11,523,032.11 19,231,543.25
61 Pre-Funding Account Balance 27,853,538.73 10,475,026.74 2,976,967.89 4,968,456.75
62 Additional Principal Reduction, LTD 1,710,581.52 1,710,581.52 0.00 0.00
63 Realized losses, LTD 0.00 0.00 0.00 0.00
-------------- ------------- ------------- -------------
64 Total Class Principal Balance 133,032,433.13 48,386,433.13 14,500,000.00 24,200,000.00
65 Pool Factor per Loan Balance 79.5036490% 29.4705591% 8.5707512% 14.3042882%
66 Pool Factor per Class Balance 98.9485988% 35.9894925% 10.7849992% 17.9997917%
====================================================================================================================================
<CAPTION>
<PAGE>
====================================================================================================================================
CLASS A4 CLASS A-5 CLASS R
-------------- ------------- -------------
<S> <C> <C> <C>
30 Loans Outstanding - BOM
31 Opening Loan Balance 9,077,227.43 23,004,487.30
32 Pre-Funding Account Balance 3,922,772.57 9,941,512.70
33 Initial Overcollateralization 0.00 0.00
34 Realized Losses, LTD 0.00 0.00
35 Carryforward Amount 0.00 0.00
------------- -------------
36 Total Class Principal Balance 13,000,000.00 32,946,000.00
37 Pool Factor per Loan Balance 6.7515786% 17.1105777%
38 Pool Factor per Class Balance 9.6693096% 24.5050057%
39 Excess Spread 0.00
40 Cross Collateral Withdrawal 0.00
41 Cross Collateral Deposit
42 Additional Principal due Class A
43 Interest Remittance @ Pass-Through Rates 76,266.67 191,361.35
44 Supplemental Interest Remittance 0.00 0.00
PRINCIPAL ADDITIONS:
--------------------
45 Number of loans
46 Transfers from Pre-Funding Account 1,253,766.88 3,177,431.04
PRINCIPAL REDUCTIONS:
---------------------
47 Class 1A-5 Lockout Remittance 0.00
48 Prepayments - Number
49 Prepayments - Dollar 0.00 0.00
50 Net Liquidation Proceeds 0.00 0.00
51 Curtailments 0.00 0.00
52 Normal and Excess Payments 0.00 0.00
53 Pre-Funding Account Transfer 0.00 0.00
------------- -------------
54 Total Principal Remittance 0.00 0.00
55 Additional Principal Reduction 0.00 0.00
------------- -------------
56 Total Remittance 76,266.67 191,361.35 0.00
============= ============= ====
57 Current Month Realized Loss - Number
58 Current Month Realized Loss - Dollar
CLASS PRINCIPAL BALANCE - EOM
-----------------------------
59 Loans Outstanding - EOM
60 Closing Loan Balance 10,330,994.31 26,181,918.34
61 Pre-Funding Account Balance 2,669,005.69 6,764,081.66
62 Additional Principal Reduction, LTD 0.00 0.00
63 Realized losses, LTD 0.00 0.00
------------- -------------
64 Total Class Principal Balance 13,000,000.00 32,946,000.00
65 Pool Factor per Loan Balance 7.6841217% 19.4739288%
66 Pool Factor per Class Balance 9.6693096% 24.5050057%
====================================================================================================================================
</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
1997-2 SUB-POOL 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF JUNE 1, 1997
LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1997-2 SUB-POOL 1 FOR JULY 25, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JULY 1, 1997
====================================================================================================================================
TOTAL CLASS A-1 CLASS A-2 CLASS A-3 CLASS A4 CLASS A-5
------------- ------------- ------------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
67 Weighted Note Rate - THIS Remittance 11.88134%
68 Weighted Note Rate - NEXT Remittance 11.88134%
69 Related Remittance Period for
Libor Rate 25-Jun-97 thru 24-Jul-97
70 Days in Related Period 30
71 Pass-Through Rates 5.80750% 6.67% 6.76% 7.04% 6.97%
72 Weighted Average Remaining Term 211.50
73 Original Pool - Principal Balance 94,729,249.31 35,625,326.78 10,124,599.82 16,897,607.98 9,077,227.43 23,004,487.30
74 Original Pool - Pre-Funding Account 40,937,753.72 15,395,676.25 4,375,400.18 7,302,392.02 3,922,772.57 9,941,512.70
75 Original Pool - Additional Principal
Reduction 1,221,003.03 1,221,003.03 0.00 0.00 0.00 0.00
-------------- ------------- ------------- ------------- ------------ -------------
76 Original Pool Total 134,446,000.00 49,800,000.00 14,500,000.00 24,200,000.00 13,000,000.00 32,946,000.00
77 Original Pool - Number of Loans 1674
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A OVERCOLLATERALIZATION RECONCILIATION
--------------------------------------------
Beg. of Month Current Month End of Month
------------- ------------- ------------
78 Additional Principal Reduction, LTD 0.00 489,578.49 489,578.49
79 Cross Collateral Deposits 0.00 0.00 0.00
80 Less: Realized Losses, LTD 0.00 0.00 0.00
------------- ------------- -------------
81 Overcollateralization of Principal 0.00 489,578.49 489,578.49
============= ============= =============
82 Base Overcollateralization Required 7,800,852.67
83 Required Overcollateralization Amount 7,800,852.67
CURRENT MONTH SUBORDINATED AMOUNT Beg. of Month Current Month End of Month
--------------------------------- ------------- ------------- ------------
84 Original Subordinated Amount 16,890,541.87 N/A 16,890,541.87
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 16,890,541.87 16,890,541.87
============= =============
NONRECOVERABLE ADVANCE RECONCILIATION
-------------------------------------
88 Beginning of Month 0.00
89 Current Month Unpaid Nonrecoverable
Advance 0.00
90 Less: Current Month Reimbursement 0.00
-------------
91 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
1997-2 SUB-POOL 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF JUNE 1, 1997
LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1997-2 SUB-POOL 1 FOR JULY 25, 1997, THE REMITTANCE DATE.
DUE PERIOD ENDED: JULY 1, 1997
====================================================================================================================================
CLASS CLASS CLASS CLASS CLASS
TOTAL A1 A2 A3 A4 A5
--------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
92 Total Class Principal - Original
Pool $134,446,000.00 $49,800,000.00 $14,500,000.00 $24,200,000.00 $13,000,000.00 $32,946,000.00
93 Interest Remittance Amount 725,561.77 241,011.25 80,595.83 136,326.67 76,266.67 191,361.35
94 Interest Rate Factor/1000 5.396678 4.839583 5.558333 5.633333 5.866667 5.808333
95 Total Principal Collections 923,988.38 923,988.38 0.00 0.00 0.00 0.00
96 Prefunding Account Excess 0.00 0.00 0.00 0.00 0.00 0.00
97 Additional Principal Reduction 489,578.49 489,578.49 0.00 0.00 0.00 0.00
--------------- -------------- -------------- -------------- -------------- --------------
98 Principal Remittance Amount 1,413,566.87 1,413,566.87 0.00 0.00 0.00 0.00
99 Principal Payment Factor/1000 10.514012 28.384877 0.000000 0.000000 0.000000 0.000000
100 Current Month Ending Principal
Factor 989.485988 971.615123 1,000.00 1,000.00 1,000.00 1,000.00
====================================================================================================================================
</TABLE>
Page 4 of 4
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK FSB,
DESIGNATED SERVICER
SERVICERS CERTIFICATE
1997-2 SUB POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF JUNE 1, 1997
AND THE INSURANCE AGREEMENT DATED AS OF DECEMBER 19, 1996, LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1997-2 SUB POOL 2 FOR JULY 25, 1997, THE REMITTANCE DATE.
PERIOD ENDED: JULY 1, 1997
====================================================================================================================================
<S> <C>
1 Total Actual Principal Collections 1,034,937.05
2 Total Actual Interest Collections 192,635.72
3 Less: Service Fees Previously Remitted 11,675.77
4 Additional Proceeds 0.00
------------
5 Total Collections: 1,215,897.00
6 Pre-Funding Account Transfer 0.00
7 Interest Coverage Account Transfer 431,095.20
------------
8 Aggregate Amount Received: 1,646,992.20
Monthly Advance
9 Delinquent Interest 760,404.19
10 Compensating Interest 2,788.30
11 Amounts Held for Future Distributions 0.00
13 Reserve Withdrawal Per Sec. 6.08 VII 0.00
------------
14 Available Remittance Amount: 2,410,184.69
15 Less: Expense Account Deposit 4,162.98
16 Cross Collateral Deposit 0.00
------------
17 Adjusted Remittance Amount: 2,406,021.71
Remaining Amount Available:
18 Adjusted Remittance Amount 2,406,021.71
19 Insured Payments 0.00
20 Supplemental Interest Due 0.00
21 Insurance Account Deposit @ 13bp
the Ending Class Principal Balance 18,039.57
22 Class Remittance Amounts 2,387,982.14
23 Cross Collateral Withdrawal 0.00
24 Supplemental Interest not Previously Reimbursed 0.00
25 Non-Recoverable Advances not
Previously Reimbursed 0.00
------------
26 Total Remaining Amount Available: 0.00
============
Amount of Reimbursements Pursuant to Sec. 5.04
27 Servicing Fee 0.00
28 Monthly Advances and Servicer Advances 0.00
29 Other Mortgage Payments 0.00
30 Interest Earned on P&I Deposits 0.00
31 Additional Servicing Compensation 0.00
====================================================================================================================================
</TABLE>
Page 1 of 4
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK FSB,
DESIGNATED SERVICER
SERVICERS CERTIFICATE
1997-2 SUB POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF JUNE 1, 1997
AND THE INSURANCE AGREEMENT DATED AS OF DECEMBER 19, 1996, LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1997-2 SUB POOL 2 FOR JULY 25, 1997, THE REMITTANCE DATE.
PERIOD ENDED: JULY 1, 1997
====================================================================================================================================
TOTAL CLASS 2-A CLASS R
-------------- -------------- --------------
<S> <C> <C> <C>
32 Number of Loans 1002
33 Original Principal Balance 119,164,842.18 119,164,842.18
34 Original Pre-Funding Account Balance 52,861,851.87 52,861,851.87
35 Initial Overcollateralization 4,472,694.05 4,472,694.05
36 Realized Losses, LTD 0.00 0.00
37 Carryforward Amount 0.00 0.00
-------------- --------------
38 Opening Class Principal Balance 167,554,000.00 167,554,000.00
39 Pool Factor per Loan Balance 71.1202610% 71.1202610%
40 Pool Factor per Class Balance 100.0000000% 100.0000000%
41 Excess Spread 0.00 0.00
42 Additional Principal due Class A 525,398.14 525,398.14
43 Cross Collateral Deposit 0.00 0.00
44 Cross Collateral Withdrawal 0.00 0.00
45 Interest Remittance 827,646.95 827,646.95
46 Supplemental Interest Remittance 0.00 0.00
PRINCIPAL ADDITIONS:
--------------------
47 Number of Loans 164
48 Transfers from Pre-Funding Account 20,432,638.21 20,432,638.21
PRINCIPAL REDUCTIONS:
---------------------
49 Prepayments - Number 10 10
50 Prepayments - Dollar 876,257.26 876,257.26
51 Net Liquidation Proceeds 0.00 0.00
52 Curtailments 104,224.63 104,224.63
53 Normal and Excess Payments 54,455.16 54,455.16
54 Pre-Funding Account Transfer 0.00 0.00
-------------- --------------
55 Total Principal Remittance 1,034,937.05 1,034,937.05
56 Additional Principal Reduction 525,398.14 525,398.14
-------------- --------------
57 Total Remittance 2,387,982.14 2,387,982.14 0.00
============== ============== ====
58 Carryforward Amount 0.00
59 Current Month Realized Loss - Number 0 0
60 Current Month Realized Loss - Dollar 0.00 0.00
CLASS PRINCIPAL BALANCE - EOM
-----------------------------
61 Number of Loans # 1156
62 Closing Loan Balance 138,562,543.34 138,562,543.34
63 Pre-Funding Account Balance 32,429,213.66 32,429,213.66
64 Additional Principal Reduction, LTD 4,998,092.19 4,998,092.19
65 Realized Losses, LTD 0.00 0.00
66 Carryforward Amount 0.00 0.00
-------------- --------------
67 Closing Class Principal Balance 165,993,664.81 165,993,664.81
68 Pool Factor per Loan Balance 82.6972459% 82.6972459%
69 Pool Factor per Class Balance 99.0687568% 99.0687568%
====================================================================================================================================
</TABLE>
Page 2 of 4
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
BY LEE SERVICING COMPANY, A DIVISION OF SUPERIOR BANK FSB,
DESIGNATED SERVICER
SERVICERS CERTIFICATE
1997-2 SUB POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF JUNE 1, 1997
AND THE INSURANCE AGREEMENT DATED AS OF DECEMBER 19, 1996, LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1997-2 SUB POOL 2 FOR JULY 25, 1997, THE REMITTANCE DATE.
PERIOD ENDED: JULY 1, 1997
====================================================================================================================================
TOTAL CLASS A1
-------------- --------------
<S> <C> <C> <C>
70 Weighted Note Rate - This Remittance: 10.72419%
71 Weighted Note Rate - Next Remittance: 10.72419%
72 Pass-Through Rate: 5.92750% 5.92750%
73 Related Remittance Period: 25-Jun-97 thru 24-Jul-97
74 Days in Related Period: 30
75 Weighted Average Remaining Term 357.40
76 Original Pool - Principal Balance 119,164,842.18 119,164,842.18
77 Original Pool - Pre-Funding Account Balance 52,861,851.87 52,861,851.87
78 Original Pool - Initial Overcollateralization 4,472,694.05 4,472,694.05
-------------- --------------
79 Original Pool - Class Principal Balance 167,554,000.00 167,554,000.00
80 Original Pool - Number of Loans 1002
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A OVERCOLLATERALIZATION RECONCILIATION
--------------------------------------------
Beginning of Month Current Month End of Month
------------------ -------------- --------------
81 Initial Overcollateralization 0.00 525,398.14 525,398.14
82 Cross Collateral Deposits, LTD 0.00 0.00 0.00
83 Less: Realized Losses, LTD 0.00 0.00 0.00
------------- -------------- -------------
84 Overcollateralization of Principal 0.00 525,398.14 525,398.14
============= ============== =============
85 Base Overcollateralization Requirement 7,913,228.20
86 Required Overcollateralization 7,913,228.20
CURRENT MONTH SUBORDINATED AMOUNT Beginning of Month Current Month End of Month
--------------------------------- ------------------ ------------- -------------
87 Original Subordinated Amount 17,804,763.45 N/A 17,804,763.45
88 Less: Cumulative Realized Losses 0.00 0.00 0.00
89 Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
------------- -------------- -------------
90 Current Subordinated Amount 17,804,763.45 17,804,763.45
============= =============
NONRECOVERABLE ADVANCE RECONCILIATION
-------------------------------------
91 Beginning of Month 0.00
92 Current Month Nonrecoverable Advance 0.00
93 Less: Current Month Reimbursment 0.00
-------------
94 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
SERVICERS CERTIFICATE
1997-2 SUB POOL 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS OF JUNE 1, 1997
AND THE INSURANCE AGREEMENT DATED AS OF DECEMBER 19, 1996, LEE SERVICING COMPANY REPORTS THE FOLLOWING
INFORMATION PERTAINING TO SERIES 1997-2 SUB POOL 2 FOR JULY 25, 1997, THE REMITTANCE DATE.
PERIOD ENDED: JULY 1, 1997
====================================================================================================================================
Class
A1
--------------- ---------------
<S> <C> <C>
95 Total Class Principal - Original Pool $167,554,000.00 $167,554,000.00
96 Interest Remittance Amount 827,646.95 827,646.95
97 Interest Rate Factor/1000 4.939583 4.939583
98 Total Principal Collections 1,034,937.05 1,034,937.05
99 Prefunding Account Transfer 0.00 0.00
100 Additional Principal Reduction 525,398.14 525,398.14
--------------- ---------------
101 Principal Remittance Amount 1,560,335.19 1,560,335.19
102 Principal Payment Factor/1000 9.312432 9.312432
103 Principal Factor 990.687568 990.687568
====================================================================================================================================
</TABLE>
Page 4 of 4
