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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 20, 1997
SUPERIOR BANK FSB (as depositor under the Pooling and Servicing Agreement, dated
as of March 1, 1997, providing for the issuance of AFC Mortgage Loan Asset
Backed Certificates, Series 1997-1)
SUPERIOR BANK FSB
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(Exact name of registrant as specified in its charter)
UNITED STATES 333-21485 36-1414142
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification Number)
ONE LINCOLN CENTRE
OAKBROOK TERRACE, ILLINOIS 60181
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(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code (708) 916-4000
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Item 2. ACQUISITION OR DISPOSITION OF ASSETS
Description of the Certificates, Sub-Pool 1 and Sub-Pool 2
On March 20, 1997, a single series of certificates, entitled AFC Mortgage
Loan Asset Backed Certificates, Series 1997-1 (the "Certificates") were issued
pursuant to a pooling and servicing agreement (the "Agreement") attached hereto
as Exhibit 4.1, dated as of March 1, 1997, among Superior Bank FSB, as depositor
(the "Depositor"), Lee Servicing Company, a division of Superior Bank FSB, as
servicer (the "Servicer") and LaSalle National Bank, as trustee (the "Trustee").
The Certificates consist of two classes identified as Class A (the "Class A
Certificates") and Class R (the "Class R Certificates"). The Certificates
evidence in the aggregate the entire beneficial ownership interest in a trust
fund comprised of Sub-Pool 1 and Sub-Pool 2 (the "Trust Fund"), consisting
primarily of first and second liens on single-family properties, multifamily
properties and mixed residential and commercial structures (the "Mortgage
Loans") with an aggregate principal balance of $140,827,927.17 as of March 1,
1997 (the "Cut-off Date") and an aggregate amount of $33,147,497.60 deposited on
the Closing Date in the Sub-Pool 1 Pre-Funding Account and an aggregate amount
of $50,514,371.15 deposited on the Closing Date in the Sub-Pool 2 Pre-Funding
Account. The Class A Certificates were sold by the Depositor to Merrill Lynch,
Pierce, Fenner & Smith Incorporated ("Merrill") and J.P. Morgan Securities Inc.
("J.P. Morgan"), pursuant to an underwriting agreement dated March 6, 1997 among
the Depositor, Merrill and J.P. Morgan.
The Class A Certificates evidence, in the aggregate, $220,000,000
principal amount as of the Cut-off Date. The Class A Certificates will be
entitled to payments of interest accrued on the outstanding Class A Principal
Balance at a variable pass-through rate. In addition, on each Remittance Date,
the Class A Certificates will be entitled to distributions allocable to
principal which will, as more fully described in the Agreement, include the
principal portion of all scheduled and unscheduled payments received on the
Mortgage Loans during an Accrual Period.
Credit support in respect of certain losses realized on the Mortgage Loans
will be covered by a certificate insurance policy (the "Certificate Insurance
Policy") issued by Financial Guaranty Insurance Company (the "Certificate
Insurer") and, if the related Remittance Date is prior to the Cross-over Date,
Excess Spread received by the Servicer. The Certificate Insurance Policy will
irrevocably and unconditionally guaranty payment on each Remittance Date to the
Holders of the Class A Certificates of the Class A Remittance Amount. If the
Remittance Date is prior to the Cross-Over Date, Holders of the Class A
Certificates will have a right to 100% of the related Excess Spread to fund the
amount by which the Class A Remittance Amount exceeds the Available Remittance
Amount for such Remittance Date. Capitalized terms used in the second paragraph
hereof and not otherwise defined shall have the meanings assigned to them in the
Agreement.
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Items 3 through 6 and Item 8 are not included because they are not
applicable.
Item 7. Financial Statements and Exhibits
(a) Not applicable
(b) Not applicable
(c) Exhibits
4.1 Pooling and Servicing Agreement, dated as of March 1, 1997, by and
among Superior Bank FSB, as Depositor, Lee Servicing Company, a division of
Superior Bank FSB, as Servicer and LaSalle National Bank, as Trustee.
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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 FSB
By: /s/ WILLIAM C. BRACKEN
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Name: William C. Bracken
Title: Senior Vice President
and Chief Financial Officer
Dated: April 2, 1997
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EXHIBITS TABLE
4.1 Pooling and Servicing Agreement, dated as of March 1, 1997, by and
among Superior Bank FSB, as Depositor, Lee Servicing Company, a division of
Superior Bank FSB, as Servicer and LaSalle National Bank, as Trustee.
EXECUTION COPY
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POOLING AND SERVICING AGREEMENT
Dated as of March 1, 1997
LASALLE NATIONAL BANK
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(Trustee)
SUPERIOR BANK FSB
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(Depositor)
and
LEE SERVICING COMPANY,
A DIVISION OF SUPERIOR BANK FSB
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(Servicer)
AFC Mortgage Loan Asset Backed
Certificates, Series 1997-1
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TABLE OF CONTENTS
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ARTICLE I
Page
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DEFINITIONS................................................................ 2
ARTICLE II
SALE AND CONVEYANCE OF THE TRUST FUND...................................... 32
Section 2.01 Sale and Conveyance of Trust Fund; Priority and
Subordination of Ownership Interests........................ 32
Section 2.02 Possession of Mortgage Files.................................. 32
Section 2.03 Books and Records............................................. 32
Section 2.04 Delivery of Mortgage Loan Documents........................... 33
Section 2.05 Acceptance by Trustee of the Trust Fund; Certain
Substitutions; Certification by Trustee..................... 37
Section 2.06 [Reserved].................................................... 39
Section 2.07 Execution of Certificates..................................... 39
Section 2.08 Fees and Expenses of the Trustee.............................. 39
Section 2.09 Application of Principal and Interest......................... 39
Section 2.10 Conveyance of the Subsequent Mortgage Loans................... 40
ARTICLE III
REPRESENTATIONS AND WARRANTIES............................................. 44
Section 3.01 Representations of the Depositor.............................. 44
Section 3.02 Individual Mortgage Loans..................................... 46
Section 3.03 Purchase and Substitution..................................... 55
ARTICLE IV
THE CERTIFICATES........................................................... 58
Section 4.01 The Certificates.............................................. 58
Section 4.02 Registration of Transfer and Exchange of Certificates......... 58
Section 4.03 Mutilated, Destroyed, Lost or Stolen Certificates............. 63
Section 4.04 Persons Deemed Owners......................................... 63
Section 4.05 Information Reports to be Filed by the Servicer............... 64
ARTICLE V
ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS......................... 65
Section 5.01 Duties of the Servicer........................................ 65
Section 5.02 Liquidation of Mortgage Loans................................. 67
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Page
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Section 5.03 Establishment of Principal and Interest Accounts;
Deposits in Principal and Interest Accounts................. 68
Section 5.04 Permitted Withdrawals From the Principal and
Interest Account............................................ 69
Section 5.05 Payment of Property Taxes, Insurance and Other Charges........ 71
Section 5.06 Transfer of Accounts; Monthly Statements...................... 72
Section 5.07 Maintenance of Hazard Insurance............................... 72
Section 5.08 Maintenance of Mortgage Impairment Insurance Policy........... 73
Section 5.09 Fidelity Bond................................................. 73
Section 5.10 Title, Management and Disposition of REO Property............. 74
Section 5.11 Right to Repurchase Defaulted Mortgage Loans.................. 76
Section 5.12 Collection of Certain Mortgage Loan Payments.................. 77
Section 5.13 Access to Certain Documentation and Information Regarding the
Mortgage Loans.............................................. 77
Section 5.14 Superior Liens................................................ 77
Section 5.15 Environmental Matters......................................... 78
Section 5.16 Acknowledgment of Duties and Obligations...................... 78
ARTICLE VI
PAYMENTS TO THE CERTIFICATEHOLDERS......................................... 80
Section 6.01 Establishment of Certificate Account; Deposits in
Certificate Account......................................... 80
Section 6.02 Permitted Withdrawals from Certificate Account................ 80
Section 6.03 Establishment of Trustee Expense Account; Deposits in Trustee
Expense Account; Permitted Withdrawals from Trustee Expense
Account..................................................... 81
Section 6.04 Payment of Monthly Premium to Certificate Insurer............. 82
Section 6.05 Investment of Accounts........................................ 83
Section 6.06 Priority and Subordination of Distributions................... 84
Section 6.07 Insufficiency of Amount Available or Net Excess Amount
Available................................................... 89
Section 6.08 Statements.................................................... 90
Section 6.09 Advances by the Servicer...................................... 94
Section 6.10 Compensating Interest......................................... 95
Section 6.11 [Reserved].................................................... 95
Section 6.12 Pre-Funding Account........................................... 95
Section 6.13 Interest Coverage Account..................................... 96
Section 6.14 Reserve Account............................................... 97
Section 6.15 Compliance with Withholding Requirements...................... 98
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Page
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ARTICLE VII
GENERAL SERVICING PROCEDURE................................................ 100
Section 7.01 Assumption Agreements......................................... 100
Section 7.02 Satisfaction of Mortgages and Release of Mortgage Files....... 100
Section 7.03 Servicing Compensation........................................ 102
Section 7.04 Annual Statement as to Compliance............................. 102
Section 7.05 Annual Independent Public Accountants' Servicing Report and
Comfort Letter.............................................. 103
Section 7.06 Certificateholder's, Trustee's and Certificate Insurer's
Right to Examine Servicer Records........................... 103
Section 7.07 Reports to the Trustee; Principal and Interest Account
Statements.................................................. 103
ARTICLE VIII
REPORTS TO BE PROVIDED BY SERVICER......................................... 105
Section 8.01 Financial Statements.......................................... 105
ARTICLE IX
THE SERVICER............................................................... 106
Section 9.01 Indemnification; Third Party Claims........................... 106
Section 9.02 Merger or Consolidation of the Depositor and the Servicer..... 107
Section 9.03 Limitation on Liability of the Servicer and Others............ 107
Section 9.04 Servicer Not to Resign........................................ 107
Section 9.05 Representations of the Servicer............................... 108
Section 9.06 Accounting Upon Resignation or Termination of Servicer........ 109
ARTICLE X
DEFAULT.................................................................... 111
Section 10.01 Events of Default............................................ 111
Section 10.02 Trustee to Act; Appointment of Successor..................... 114
Section 10.03 Waiver of Defaults........................................... 116
ARTICLE XI
TERMINATION................................................................ 117
Section 11.01 Termination.................................................. 117
Section 11.02 Additional Termination Requirements.......................... 119
Section 11.0 Depositor's Right to Depositor's Yield Absolute............... 119
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Page
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ARTICLE XII
THE TRUSTEE................................................................ 121
Section 12.01 Duties of Trustee............................................ 121
Section 12.02 Certain Matters Affecting the Trustee........................ 123
Section 12.03 Trustee Not Liable for Certificates or Mortgage Loans........ 124
Section 12.04 Trustee May Own Certificates................................. 125
Section 12.05 Servicer to Pay Trustee's Fees and Expenses.................. 125
Section 12.06 Eligibility Requirements for Trustee......................... 126
Section 12.07 Resignation and Removal of the Trustee....................... 126
Section 12.08 Successor Trustee............................................ 127
Section 12.09 Merger or Consolidation of Trustee........................... 128
Section 12.10 Appointment of Co-Trustee or Separate Trustee................ 128
Section 12.11 Tax Returns.................................................. 129
Section 12.12 Appointment of Custodians.................................... 129
Section 12.13 Trustee May Enforce Claims Without Possession
of Certificates............................................ 130
Section 12.14 Suits for Enforcement........................................ 130
Section 12.15 Control of Remedies by Certificate Insurer and
Certificateholders......................................... 130
ARTICLE XIII
REMIC PROVISIONS........................................................... 131
Section 13.01 REMIC Administration......................................... 131
Section 13.02 Prohibited Transactions and Activities....................... 134
Section 13.03 Servicer and Trustee Indemnification......................... 134
ARTICLE XIV
MISCELLANEOUS PROVISIONS................................................... 135
Section 14.01 Acts of Certificateholders................................... 135
Section 14.02 Amendment.................................................... 135
Section 14.03 Recordation of Agreement..................................... 136
Section 14.04 Duration of Agreement........................................ 136
Section 14.05 Governing Law................................................ 136
Section 14.06 Notices...................................................... 136
Section 14.07 Severability of Provisions................................... 138
Section 14.08 No Partnership............................................... 138
Section 14.09 Counterparts................................................. 138
Section 14.10 Successors and Assigns....................................... 138
Section 14.11 Headings..................................................... 138
Section 14.12 The Certificate Insurer...................................... 138
Section 14.13 Paying Agent................................................. 139
Section 14.14 Actions of Certificateholders................................ 139
Section 14.15 Grant of Security Interest................................... 140
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EXHIBIT A CONTENTS OF MORTGAGE FILE
EXHIBIT B-1 FORM OF CLASS A CERTIFICATE
EXHIBIT B-2 FORM OF CLASS R CERTIFICATE
EXHIBIT B-3 FORM OF REVERSE OF CERTIFICATE
EXHIBIT C PRINCIPAL AND INTEREST ACCOUNT LETTER AGREEMENT
EXHIBIT D RESALE CERTIFICATION
EXHIBIT E ASSIGNMENT
EXHIBIT E(1) WIRING INSTRUCTIONS FORM
EXHIBIT F FORM OF TRUSTEE INITIAL CERTIFICATION
EXHIBIT F-1 FORM OF TRUSTEE INTERIM CERTIFICATION
EXHIBIT G FORM OF TRUSTEE FINAL CERTIFICATION
EXHIBIT H-1 MORTGAGE LOAN SCHEDULE FOR SUB-POOL 1
EXHIBIT H-2 MORTGAGE LOAN SCHEDULE FOR SUB-POOL 2
EXHIBIT I REQUEST FOR RELEASE OF DOCUMENTS
EXHIBIT J TRANSFER AFFIDAVIT
EXHIBIT J-1 FORM OF TRANSFER CERTIFICATE
EXHIBIT K SPECIAL POWER OF ATTORNEY
EXHIBIT L CUSTODIAL AGREEMENT
EXHIBIT M FORM OF LIQUIDATION REPORT
EXHIBIT N FORM OF DELINQUENCY REPORT
EXHIBIT O CERTIFICATE INSURANCE POLICY
EXHIBIT P PRINCIPAL PAYMENT TABLE
EXHIBIT Q FORM OF SERVICER'S MONTHLY REMITTANCE REPORT TO TRUSTEE
EXHIBIT R PROPOSED SUBSEQUENT MORTGAGE LOAN SCHEDULE
EXHIBIT S MORTGAGE LOANS 30 OR MORE DAYS DELINQUENT
EXHIBIT T SUBSEQUENT TRANSFER INSTRUMENT
EXHIBIT U FORM OF ADDITION NOTICE
EXHIBIT V OFFICER'S CERTIFICATE
EXHIBIT W FORM OF AGREEMENT OF APPOINTMENT AND ACCEPTANCE
OF SEPARATE TRUSTEE
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<PAGE>
Agreement dated as of March 1, 1997, among LaSalle National Bank, as
trustee (the "Trustee"), Superior Bank FSB, as depositor (the "Depositor"), and
Lee Servicing Company, a division of Superior Bank FSB, as servicer (the
"Servicer").
PRELIMINARY STATEMENT
In order to facilitate the servicing of certain Mortgage Loans by the
Servicer, the Servicer and the Depositor are entering into this Agreement with
the Trustee. The Depositor is transferring the Sub-Pool 1 Mortgage Loans and
Sub-Pool 2 Mortgage Loans to the Trustee for the benefit of the
Certificateholders under this Agreement, pursuant to which two classes of
Certificates are being issued on the Closing Date, denominated on the face
thereof as AFC Mortgage Loan Asset Backed Certificates, Series 1997-1, Class A
and Class R, respectively.
The Class A and the Class R Certificates represent, in the aggregate, a
100% undivided ownership interest in the Mortgage Loans and all proceeds thereof
due after the Cutoff Date with respect to the Initial Mortgage Loans and due
after a Subsequent Cut-off Date with respect to the Subsequent Mortgage Loans
(other than the Depositor's Yield). The Sub-Pool 1 Initial Mortgage Loans have
an aggregate outstanding principal balance of $41,875,267.67 as of the Cut-off
Date, and the Sub-Pool 2 Initial Mortgage Loans have an aggregate outstanding
principal balance of $98,952,659.50 as of the Cut-off Date, after application of
payments received by the Depositor on or before such date. The aggregate
outstanding principal balance of both Sub-Pools is $140,827,927.17 as of the
Cut-off Date. Sub-Pool 1 consists of fixed rate mortgage loans and Sub-Pool 2
consists of adjustable rate mortgage loans. The Class A Certificates will have a
variable pass-through rate. As provided herein, the Class R Certificates are
subordinate to the Class A Certificates. As provided herein, the Servicer will
make an election that a portion of the segregated pool of assets subject to this
Agreement, (exclusive of the Interest Coverage Account) including the Mortgage
Loans, be treated as a "real estate mortgage investment conduit" (a "REMIC") for
federal income tax purposes ("Trust Fund REMIC"). The Class A Certificates will
be "regular interests" and the Class R Certificates will be the sole Class of
"residual interests" in such REMIC.
The parties hereto agree as follows:
[INTENTIONALLY LEFT BLANK]
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ARTICLE I
DEFINITIONS
Whenever used in this Agreement, including the Preliminary Statement, the
following words and phrases, unless the context otherwise requires, shall have
the following meanings. This Agreement relates to the Trust Fund consisting of
Sub-Pool 1 and Sub-Pool 2, evidenced by AFC Mortgage Loan Asset Backed
Certificates, Series 1997-1, Class A and Class R. All calculations of interest
pursuant to this Agreement, unless otherwise specified, are based on a 360-day
year consisting of twelve 30-day months.
ACCOUNT: Any of the Certificate Account, Trustee Expense Account, Interest
Coverage Account, Reserve Account, Principal and Interest Accounts or
Pre-Funding Accounts established by the Trustee and held in trust by the Trustee
for the Certificateholders. The Trustee's obligation to establish and maintain
the Accounts is not delegable, except with respect to the Principal and Interest
Accounts.
ACCRUAL PERIOD: With respect to the Class A Certificates and with respect
to any Remittance Date other than the April 1997 Remittance Date, the period
commencing on the immediately preceding Remittance Date and ending on the day
immediately preceding such Remittance Date. With respect to the April 1997
Remittance Date, the period commencing on the Closing Date and ending on the day
immediately preceding the April 1997 Remittance Date.
ADDITION NOTICE: With respect to the transfer of Subsequent Mortgage Loans
to the Trust Fund pursuant to Section 2.10 of this Agreement, a notice,
substantially in the form of Exhibit U, which shall be given not later than two
Business Days prior to the related Subsequent Transfer Date, of the Depositor's
designation of Subsequent Mortgage Loans to be sold to the Trust Fund and the
aggregate principal balance of such Subsequent Mortgage Loans.
ADDITIONAL PRINCIPAL: With respect to the Class A Certificates and any
Remittance Date, an amount equal to the lesser of (i) amount necessary to reduce
the Class A Principal Balance so that the Overcollateralization Amount equals
the Required Overcollateralization Amount and (ii) the Net Excess Spread.
ADJUSTMENT DATE: With respect to each Sub-Pool 2 Mortgage Loan, a date on
which the Mortgage Rate may adjust, as provided in the related Mortgage Note.
ADVERSE REMIC EVENT: As defined in Section 13.01(f).
AFFILIATE: With respect to any Person, any other Person controlling,
controlled by or under common control with such Person. For the purposes of this
definition, "control" means the power to direct the management and policies of
such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.
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AGREEMENT: This Pooling and Servicing Agreement and all amendments hereof
and supplements hereto.
AMOUNT AVAILABLE: With respect to a particular Remittance Date, the sum of
(i) the Available Remittance Amount (reduced by the Monthly Premium to be paid
to the Certificate Insurer pursuant to Section 6.04), (ii) the Excess Spread for
such Remittance Date, (iii) if an Available Funds Shortfall exists, any amounts
in respect of any remaining Available Funds Shortfall withdrawn from the Reserve
Account and deposited in the Certificate Account and (iv) any Insured Payments.
AMOUNTS HELD FOR FUTURE DISTRIBUTION: With respect to any Remittance Date,
the aggregate amount held in the Principal and Interest Accounts on account of
all Monthly Payments, or portions thereof, received in respect of scheduled
principal and interest due after the Due Period related to such Remittance Date
for application on the scheduled Due Date at the request of the Mortgagor.
ANNUAL TRUSTEE EXPENSE AMOUNT: As of each Remittance Date, with respect to
each Mortgage Loan, an amount equal to one-twelfth of the product of 0.03%
multiplied by the related Principal Balance.
APPRAISED VALUE: The appraised value of the Mortgaged Property based upon
the appraisal made by or for the originator at the time of the origination of
the related Mortgage Loan, or the sales price of the Mortgaged Property at the
time of such origination, whichever is less.
ASSIGNMENT OF LEASES: With respect to any Mortgaged Property related to the
Sub-Pool 1 Multifamily Loans and Sub-Pool 1 Mixed Use Loans, any assignment of
leases, rents and profits or similar document or instrument executed by the
related Mortgagor in connection with the origination of the related Sub-Pool 1
Multifamily Loan or Sub-Pool 1 Mixed Use Loan assigning to the mortgagee all of
the income, rents and profits derived from the ownership, operation, leasing or
disposition of all or a portion of such Mortgaged Property.
ASSIGNMENT OF MORTGAGE: With respect to each Mortgage Loan, an assignment
of the Mortgage, notice of transfer or equivalent instrument sufficient under
the laws of the jurisdiction wherein the related Mortgaged Property is located
to reflect of record the sale of the Mortgage to the Trustee for the benefit of
the Certificateholders.
AUTHORIZED DENOMINATIONS: The Class A Certificates are issuable only in the
minimum Percentage Interest corresponding to a minimum denomination of $100,000
or integral multiples of $1,000 in excess thereof (except that a single Class A
Certificate may be issued in a different amount which is less than the related
minimum dollar denomination).
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AVAILABLE FUNDS SHORTFALL: With respect to any particular Remittance Date,
the amount by which the Available Remittance Amount is less than the Required
Payments.
AVAILABLE REMITTANCE AMOUNT: With respect to each Remittance Date, the sum
of the following: (i) the sum of all amounts described in clauses (i) through
(vii), inclusive, of Section 5.03 received by the Servicer or any Subservicer
(including any amounts paid by the Servicer or the Depositor and excluding any
Excess Spread, any Amounts Held for Future Distribution, any amounts not
required to be deposited in the Principal and Interest Accounts pursuant to
Section 5.03 and any amounts withdrawn by the Servicer pursuant to Section
5.04(ii), (iii), (vi) and (vii) as of the related Determination Date) during the
related Due Period and deposited into the Certificate Account as of the related
Determination Date, (ii) the amount of any Advances and Compensating Interest
payments remitted by the Servicer for such Remittance Date, (iii) with respect
to the final Remittance Date in connection with the purchase of all the Mortgage
Loans and REO Properties by the Servicer or Certificate Insurer, the Termination
Price remitted by the Servicer and (iv) the amount of any Interest Coverage
Addition for such Remittance Date. No amount included in the computation of the
Available Remittance Amount with respect to any Remittance Date by virtue of
being described by any component of the definition thereof shall be included
more than once by virtue of also being described by any other component or
otherwise.
BALLOON MORTGAGE LOAN: Any Mortgage Loan that provided on the date of
origination for an amortization schedule extending beyond its stated maturity
date.
BALLOON PAYMENT: With respect to any Balloon Mortgage Loan, as of any date
of determination, the Monthly Payment payable on the stated maturity date of
such Mortgage Loan.
BOOK-ENTRY CERTIFICATE: Any Class A Certificate registered in the name of
the Depository or its nominee.
BUSINESS DAY: Any day other than (i) a Saturday or Sunday, or (ii) a day on
which banking institutions in the States of New York, Illinois or New Jersey are
authorized or obligated by law or executive order to be closed; provided,
however, that the Servicer shall provide the Trustee with a list of dates on
which banking institutions in the State of New Jersey are authorized or
obligated by law or executive order to be closed and such list shall be revised
annually thereafter and delivered to the Trustee prior to the expiration of the
most recent list provided. Failure to provide such list shall not constitute an
Event of Default; provided that the Trustee may rely on the most recently
delivered list without further investigation.
CERCLA: The Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended.
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CERTIFICATE: Any Class A or Class R Certificate executed by the Trustee on
behalf of the Trust Fund and authenticated by the Trustee, substantially in the
applicable form annexed hereto as Exhibits B-1 and B-2.
CERTIFICATE ACCOUNT: As described in Section 6.01.
CERTIFICATEHOLDER or HOLDER: The Person in whose name a Certificate is
registered in the Certificate Register, except that, neither a Disqualified
Organization nor a Non-United States Person shall be a Holder of a Class R
Certificate for any purposes hereof and, solely for the purposes of giving any
consent, waiver, request or demand pursuant to this Agreement, any Certificate
registered in the name of the Depositor, the Servicer or any Subservicer, or
registered in the name of any Person known to a Responsible Officer of the
Trustee to be an Affiliate of any of them, shall be deemed not to be outstanding
and the undivided Percentage Interest evidenced thereby shall not be taken into
account in determining whether the requisite Percentage Interest of Certificates
necessary to effect any such consent, waiver, request or demand has been
obtained. For purposes of any consent, waiver, request or demand of
Certificateholders pursuant to this Agreement, upon the Trustee's request, the
Depositor, the Servicer and any Subservicer shall provide to the Trustee a
notice identifying any of their respective affiliates that is a
Certificateholder as of the date(s) specified by the Trustee in such request.
All references to "Holders" or "Certificateholders" shall reflect the rights of
Certificate Owners as they may indirectly exercise such rights through the
Depository and participating members thereof, except as otherwise specified
herein; provided, however, that the Trustee shall be required to recognize as a
"Holder" or "Certificateholder" only the Person in whose name a Certificate is
registered in the Certificate Register.
CERTIFICATE INSURANCE POLICY: The certificate guaranty surety bond, policy
number 97010138, dated the Closing Date, issued by the Certificate Insurer for
the benefit of the Holders of the Class A Certificates, pursuant to which the
Certificate Insurer guarantees Insured Payments, a copy of which is attached
hereto as Exhibit O.
CERTIFICATE INSURER: Financial Guaranty Insurance Company, a New York stock
insurance corporation, or any successor thereof, as issuer of the Certificate
Insurance Policy.
CERTIFICATE OWNER: With respect to a Book-Entry Certificate, the Person who
is the beneficial owner of such Certificate as reflected on the books of the
Depository or on the books of a Person maintaining an account with the
Depository (directly or as an indirect participant, in accordance with the rules
of the Depository).
CERTIFICATE REGISTER: As defined in Section 4.02.
CERTIFICATE REGISTRAR: Initially, the Trustee, and thereafter, any
successor appointed pursuant to Section 4.02.
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CLASS: Collectively, Certificates bearing the same numerical or
alphabetical designation (A or R).
CLASS A CARRY-FORWARD AMOUNT: With respect to the Class A Certificates and
as to any Remittance Date, the sum of (i) the amount, if any, by which (x) the
Class A Remittance Amount as of the immediately preceding Remittance Date
exceeded (y) the amount of the actual distribution, exclusive of any Insured
Payments made to the Class A Certificateholders, made pursuant to Sections
6.06(c)(X)(i) and (ii) or pursuant to Sections 6.06(c)(Y)(i) and (ii) on such
immediately preceding Remittance Date and (ii) interest on the amount, if any,
described in clause (i) above, to the extent that the amount in clause (i)
represents Insured Payments made by the Certificate Insurer, at the Class A
Pass-Through Rate from such immediately preceding Remittance Date.
CLASS A CERTIFICATE: A Certificate denominated as a Class A Certificate.
CLASS A CERTIFICATEHOLDER: A Holder of a Class A Certificate.
CLASS A INTEREST REMITTANCE AMOUNT: As to any Remittance Date, the interest
accrued at the Class A Pass-Through Rate for the Accrual Period on the Class A
Principal Balance.
CLASS A PASS-THROUGH RATE: As to any Remittance Date, the lesser of (i)
One-Month LIBOR plus 0.22% per annum and (ii) the weighted average of the
Mortgage Rates of the Mortgage Loans minus the sum of (a) the Servicing Fee
Rate, (b) the rate at which the Annual Trustee Expense Amount is calculated, (c)
the Premium Percentage and (d) 0.75% per annum; provided, however that on any
Remittance Date on which the Servicer does not exercise its right to purchase
Mortgage Loans and REO Properties pursuant to Section 11.01, the rate provided
in clause (i) will be One-Month LIBOR plus 0.62%. For purposes of calculating
the Class A Pass-Through Rate for any Remittance Date, because all of the
Mortgage Loans provide for the calculation of interest on a basis other than a
360-day year and the actual number of days elapsed (an "Actual/360 Basis")
(which is the basis on which interest is calculated on the Class A
Certificates), the basis on which interest is computed on the Mortgage Loans
will be deemed adjusted to an Actual/360 Basis that will result in the same
amount of interest being due as would be due using the method of computation of
interest that is used to calculate interest on the Mortgage Loans.
CLASS A PRINCIPAL BALANCE: With respect to the Class A Certificates and as
of any date of determination, the Original Class A Principal Balance reduced by
the sum of (A) all amounts (including that portion of Insured Payments, if any,
made in respect of principal) previously distributed to the Class A
Certificateholders in respect of principal on all previous Remittance Dates on
account of amounts described in clauses (c)(i) through (iv), inclusive, and
clauses (c)(v) (to the extent the payment pursuant to clause (c)(v) is in
respect of principal not previously covered by an Insured Payment), (c)(vi) and
(c)(viii) of the definition of Class A Principal Remittance Amount, (B) all
amounts previously distributed to the Class A
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Certificateholders in respect of principal pursuant to Section 6.06(c)(X)(iv)
and (C) all amounts previously distributed to the Class A Certificateholders
pursuant to the last paragraph of Section 6.06(c).
CLASS A PRINCIPAL REMITTANCE AMOUNT: With respect to any Remittance Date
(other than the Remittance Date described in the next succeeding sentence), the
amount required to be distributed on such Remittance Date from available funds
in respect of the Class A Certificates, such amount being equal to the least of
(a) that amount required to reach the Required Overcollateralization Amount, or
thereafter, to maintain such Required Overcollateralization Amount on such
Remittance Date, (b) the sum of (i) the Class A Principal Balance immediately
prior to such Remittance Date and (ii) the amounts described in clauses (c)(v)
(to the extent the amount in clause (c)(v) represents prior Insured Payments
made by the Certificate Insurer or interest accrued thereon in accordance with
the definition of Class A Carry Forward Amount) and (c)(vii) below and (c) the
sum of (i) each payment of principal received by the Servicer or any
Sub-Servicer (exclusive of Curtailments, Principal Prepayments, the principal
portion of Amounts Held for Future Distribution and amounts described in clause
(c)(iii) hereof) during the related Due Period, including any Excess Payments,
(ii) all Curtailments and all Principal Prepayments received by the Servicer
during such related Due Period, (iii) the principal portion of all Insurance
Proceeds, Released Mortgaged Property Proceeds and Net Liquidation Proceeds
received during the related Due Period; (iv) an amount equal to the Unrecovered
Class A Portion; (v) the Class A Carry-Forward Amount; (vi) (a) that portion of
the purchase price (as indicated in Section 2.05(b)) actually received by the
Trustee of any repurchased Mortgage Loan which represents principal and (b) the
principal portion of any Substitution Adjustments deposited in the Principal and
Interest Accounts as of the related Determination Date; (vii) any amounts
recovered from the Class A Certificateholders during the related Due Period that
constituted a Monthly Payment on a related Mortgage Loan or an Advance that was
recovered as a Preference Amount; and (viii) the amount, if any, by which (a)
the Class A Principal Balance with respect to the Class A Certificates
immediately prior to such Remittance Date minus the amounts to be distributed on
such Remittance Date pursuant to clauses (c)(i), (ii), (iii) and (iv) above and
pursuant to Section 6.06(c)(X)(ii) and (iv) and applied to reduce the Class A
Principal Balance, exceeds (b) the Scheduled Class A Principal Balance for such
Remittance Date as set forth in the Principal Payment Table. As to the final
Remittance Date in connection with the purchase by the Servicer of all the
Mortgage Loans and REO Properties pursuant to Section 11.01, the amount of
principal required to be distributed on such Remittance Date from available
funds in respect of the Class A Certificates, such amount being equal to the
amount described in clause (b) of the immediately preceding sentence with
respect to such Remittance Date.
CLASS A REMITTANCE AMOUNT: For the Class A Certificates and as to any
Remittance Date, the sum of (i) the Class A Principal Remittance Amount and (ii)
the Class A Interest Remittance Amount.
CLASS R CERTIFICATE: A Certificate denominated as a Class R Certificate.
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CLASS R CERTIFICATEHOLDER: A Holder of a Class R Certificate.
CLOSING DATE: March 20, 1997.
CODE: The Internal Revenue Code of 1986.
COMBINED LOAN-TO-VALUE RATIO OR CLTV: With respect to any SubPool 1
Mortgage Loan, the sum of the original principal balance of such Sub-Pool 1
Mortgage Loan and the outstanding principal balance of any related First Lien as
of the date of origination of the Sub-Pool 1 Mortgage Loan, divided by the
lesser of (i) the value of the related Mortgaged Property based upon the
appraisal made at the origination of the Sub-Pool 1 Mortgage Loan or (ii) the
purchase price of the Mortgaged Property if the Sub-Pool 1 Mortgage Loan
proceeds are used to purchase the Mortgaged Property.
COMPENSATING INTEREST: As defined in Section 6.10.
CROSS-OVER DATE: The date on and after which the Subordinated Amount is
reduced to zero.
CURTAILMENT: With respect to a Mortgage Loan, any payment of principal
received during a Due Period as part of a payment that is in excess of four
times the amount of the Monthly Payment due for such Due Period and which is not
intended to satisfy the Mortgage Loan in full, nor is intended to cure a
delinquency.
CUSTODIAL AGREEMENT: The agreement for the retention of the Trustee's
Mortgage Files initially in the form attached as Exhibit L.
CUSTODIAN: The custodian appointed pursuant to a Custodial Agreement and
Section 12.12, which is not affiliated with the Servicer or the Depositor which
initially shall be LaSalle National Bank.
CUT-OFF DATE: March 1, 1997.
CUT-OFF DATE PRINCIPAL BALANCE: With respect to any Initial Mortgage Loan,
the outstanding principal balance of such Mortgage Loan as of the close of
business on the Cut-off Date.
DEFINITIVE CERTIFICATES: As defined in Section 4.02(e).
DELETED MORTGAGE LOAN: A Mortgage Loan replaced by a Qualified Substitute
Mortgage Loan.
DELINQUENCY CALCULATION AMOUNT: With respect to any Determination Date, the
sum of:
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(a) 5.375% of the aggregate Principal Balance of the Mortgage Loans
that, as of the end of the last Business Day of the month preceding such
Determination Date, are 30 to 59 days delinquent;
(b) 10.75% of the aggregate Principal Balance of the Mortgage Loans
that, as of the end of the last Business Day of the month preceding such
Determination Date, are 60 to 89 days delinquent;
(c) 21.5% of the aggregate Principal Balance of the Mortgage Loans
that, as of the end of the last Business Day of the month preceding such
Determination Date, are 90 or more days delinquent; and
(d) without duplication of the amounts determined under clauses (a),
(b) and (c) above, 21.5% of the aggregate Principal Balance of all REO
Property held by the Servicer as of the end of the last Business Day of the
month preceding such Determination Date.
DEPOSIT PREMIUM: As defined in the Insurance Agreement.
DEPOSITOR: Superior Bank FSB, a federally chartered stock savings bank, and
any successor thereto.
DEPOSITOR'S YIELD: For each Mortgage Loan, the prepayment penalties and
premiums collected on such Mortgage Loan. The Depositor's Yield is retained by
the Depositor and is not part of the Trust Fund.
DEPOSITORY: The initial Depository shall be The Depository Trust Company,
the nominee of which is CEDE & Co., as the registered Holder of the Class A
Certificates. The Depository shall at all times be a "clearing corporation" as
defined in Section 8-102(3) of the Uniform Commercial Code of the State of New
York.
DEPOSITORY PARTICIPANT: A broker, dealer, bank or other financial
institution or other Person for whom from time to time a Depository effects
book-entry transfers and pledges of securities deposited with the Depository.
DETERMINATION DATE: The 22nd day of each month (or if such day is not a
Business Day, the immediately following Business Day but in no event fewer than
two Business Days prior to the Remittance Date immediately following such 22nd
day).
DIRECTLY OPERATE: With respect to any REO Property relating to a Sub-Pool
1 Multifamily Loan or Sub-Pool 1 Mixed Use Loan, the furnishing or rendering of
services to the tenants thereof, the management or operation of such REO
Property, the holding of such REO Property primarily for sale to customers, the
performance of any construction work thereon or any use of such REO Property in
a trade or business conducted by the Trust Fund REMIC other than through an
independent contractor; provided, however, that the Trustee (or the
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Servicer or any Subservicer on behalf of the Trustee) shall not be considered to
Directly Operate an REO Property solely because the Trustee (or the Servicer or
any Subservicer on behalf of the Trustee) establishes rental terms, chooses
tenants, enters into or renews leases, deals with taxes and insurance, or makes
decisions as to repairs or capital expenditures with respect to such REO
Property.
DISQUALIFIED ORGANIZATION: Any of the following (i) the United States or
any possession thereof, any State or any political subdivision thereof, or any
agency or instrumentality of any of the foregoing (other than an instrumentality
which is a corporation if all of its activities are subject to tax, and, except
for the FHLMC, a majority of its board of directors is not selected by such
governmental unit), (ii) a foreign government, international organization or any
agency or instrumentality of either of the foregoing, (iii) any organization
(except certain farmer's cooperatives described in Section 521 of the Code)
which is exempt from the tax imposed by Chapter 1 of the Code unless such
organization is subject to the tax imposed by Section 511 of the Code, (iv)
rural electric and telephone cooperatives described in Section 1381 of the Code
or (v) any other Person so designated by the Trustee based upon an Opinion of
Counsel provided to the Trustee that the holding of any ownership interest in a
Residual Certificate by such Person may cause the Trust Fund REMIC or any Person
having an ownership interest in any Class of Certificates, other than such
Person, to incur liability for any federal tax imposed under the Code that would
not otherwise be imposed but for the transfer of an ownership interest in the
Residual Certificate to such Person. The terms "United States," "State" and
"international organization" shall have the meanings set forth in Section 7701
of the Code.
DUE DATE: The day of the month on which the Monthly Payment is due from the
Mortgagor on a Mortgage Loan.
DUE PERIOD: With respect to each Remittance Date, the period commencing on
the second day of the month immediately preceding the month in which such
Remittance Date occurs and ending on the first day of the month in which such
Remittance Date occurs.
ELIGIBLE ACCOUNT: Either (A) a segregated account or accounts maintained
with an institution whose deposits are insured by and held up to the limits
insured by the Bank Insurance Fund or the Savings Association Insurance Fund of
the FDIC, the unsecured and uncollateralized debt obligations of which shall be
rated "A" or better by S&P and A2 or better by Moody's and in one of the two
highest short-term rating categories by S&P and the highest short term rating
category by Moody's, and which is either (i) a federal savings and loan
association duly organized, validly existing and in good standing under the
federal banking laws, (ii) an institution duly organized, validly existing and
in good standing under the applicable banking laws of any state, (iii) a
national banking association duly organized, validly existing and in good
standing under the federal banking laws, (iv) a principal subsidiary of a bank
holding company, or (v) approved in writing by the Certificate Insurer, Moody's
and S&P or (B) a trust account or accounts (which shall be a "special deposit
account") maintained with the trust department of a federal or state chartered
depository institution or trust company, having
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capital and surplus of not less than $50,000,000, acting in its fiduciary
capacity. Any Eligible Accounts maintained with the Trustee shall conform to the
preceding clause (B).
EVENT OF DEFAULT: As described in Section 10.01.
EVENT OF NONPAYMENT: An event of nonpayment shall occur with respect to any
Remittance Date if (i) on or prior to the Cross-Over Date, the amounts remitted
by the Servicer and available to the Trustee pursuant to Sections 5.04(i),
6.05(e), 6.09 and 6.10 (to the extent not included in 5.04(i)) for deposit in
the Certificate Account that are not subject to an automatic stay under Section
362 of the United States Bankruptcy Code pursuant to an order of a United States
bankruptcy court of competent jurisdiction, plus any amounts on deposit in the
Reserve Account prior to the Cross-Over Date, plus the amount to be paid
pursuant to the last paragraph of Section 6.06(c) (if any), will not, taken
together, be sufficient to pay the sum of (x) all of the Class A Remittance
Amount (exclusive of any Class A Carry-Forward Amount representing amounts
previously paid to the Class A Certificateholders as Insured Payments, or
representing interest accrued in respect of such Insured Payments) and (y) the
Monthly Premium to be withdrawn from the Certificate Account to be paid to the
Certificate Insurer pursuant to Section 6.02(i) in respect of such Remittance
Date, or (ii) after the Cross-Over Date, the Available Remittance Amount
remitted by the Servicer to the Trustee pursuant to Section 5.04(i) plus that
additional portion of the Amount Available constituting Excess Spread available
to pay the Class A Interest Remittance Amount pursuant to Section 6.06(c)(Y)(i),
the amounts remitted by the Servicer to the Trustee pursuant to Sections
6.05(e), 6.09 and 6.10 (to the extent not included in 5.04(i)) for deposit in
the Certificate Account that are not subject to an automatic stay under Section
362 of the United States Bankruptcy Code pursuant to an order of a United States
bankruptcy court of competent jurisdiction, will not, taken together, be
sufficient to pay the sum of (x) all of the Class A Remittance Amount (exclusive
of any Class A Carry-Forward Amount representing amounts previously paid to the
Class A Certificateholders, as Insured Payments, or representing interest
accrued in respect of such Insured Payments) and (y) the Monthly Premium to be
withdrawn from the Certificate Account to be paid to the Certificate Insurer
pursuant to Section 6.02(i) in respect of such Remittance Date, or (iii) the sum
of all Realized Losses since the Closing Date exceeds 75% of the Subordinated
Amount as of May 27, 1997.
EXCESS PAYMENTS: With respect to a Due Period, any principal amounts
received on a Mortgage Loan in excess of the principal amount included in the
Monthly Payment due on the Due Date in such Due Period which does not constitute
either a Curtailment or a Principal Prepayment.
EXCESS PROCEEDS: With respect to any Mortgage Loan (including a Mortgage
Loan as to which the related Mortgaged Property has become an REO Property) that
became a Liquidated Mortgage Loan during any Due Period, the excess, if any, of
(a) the total Net Liquidation Proceeds received in respect thereof during such
Due Period, over (b) the Principal Balance of such Mortgage Loan as of the date
such Mortgage Loan became a Liquidated Mortgage Loan plus interest thereon at
the Mortgage Rate from the date through
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which interest was last paid by the Mortgagor or advanced by the Servicer to but
not including the Due Date in such Due Period.
EXCESS SPREAD: With respect to a particular Remittance Date, the sum of (a)
the excess of (x) all payments received or advanced on account of interest on
the Mortgage Loans during the related Due Period over (y) the sum of (i) the
Class A Interest Remittance Amount for such Remittance Date, (ii) the Annual
Trustee Expense Amount for such Remittance Date, (iii) the Monthly Premium for
such Remittance Date and (iv) the Servicing Fee for such Remittance Date and (b)
with respect to the April 25, 1997 and May 27, 1997 Remittance Dates, Excess
Spread shall also include an amount with respect to the Pre-Funded Amounts to be
determined by the Certificate Insurer and deposited into the Interest Coverage
Account by the Depositor on the Closing Date.
FDIC: The Federal Deposit Insurance Corporation and any successor thereto.
FHLMC: The Federal Home Loan Mortgage Corporation and any successor
thereto.
FIDELITY BOND: As described in Section 5.09.
FINAL ORDER: As defined in Section 6.06(b).
FIRST LIEN: With respect to any Sub-Pool 1 Mortgage Loan which is secured
by a second priority lien, the Mortgage Loan relating to the corresponding
Mortgaged Property having a first priority lien.
FNMA: The Federal National Mortgage Association and any successor thereto.
FUNDING PERIOD: With respect to each Sub-Pool, the period beginning on the
Closing Date and ending on the earlier of the date on which (a) the amount on
deposit in the related Pre-Funding Account is zero or (b) the close of business
on May 16, 1997.
GROSS MARGIN: With respect to each Sub-Pool 2 Mortgage Loan, the fixed
percentage amount set forth in the related Mortgage Note to be added to the
related Index to determine the Mortgage Rate on each Adjustment Date, and which
is set forth in the related Mortgage Loan Schedule.
INDEX: With respect to the Sub-Pool 2 Mortgage Loans, the index for the
adjustment of the Mortgage Rate set forth as such in the related Mortgage Note,
such index being either (i) the weekly average yield on United States Treasury
Securities adjusted to a constant maturity of one year, as published in the
Federal Reserve Statistical Release H.15
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(519), as most recently announced as of a date 45 days preceding such Mortgage
Loan's Adjustment Date (the "One-Year Treasury Index") or (ii) the average of
interbank offered rates for six-month U.S. dollar-denominated deposits in the
London market as published in The Wall Street Journal "Money Rates" table, and
as most recently available as of the date 45 days before such Mortgage Loan
Adjustment Date if such date falls on a Friday or, if such date does not fall on
a Friday, then as most recently available as of the Friday immediately preceding
the date 45 days before each such Mortgage Loan Adjustment Date (the "Six-Month
LIBOR Index"). If the applicable Index becomes unavailable, the Servicer, on
behalf of the Trustee, will select an alternative index for mortgage loans on
single family residential properties, based upon comparable information, over
which it has no control and which is readily verifiable by mortgagors.
INDEPENDENT PERSON: When used with respect to any specified Person, any
such Person who (a) is in fact independent of the Depositor, the Servicer and
their respective Affiliates, (b) does not have any direct financial interest in
or any material indirect financial interest in any of the Depositor or the
Servicer or any Affiliate thereof, and (c) is not connected with the Depositor
or the Servicer or any Affiliate thereof as an officer, employee, promoter,
underwriter, trustee, partner, director or Person performing similar functions;
provided, however, that a Person shall not fail to be Independent of the
Depositor or the Servicer or any Affiliate thereof solely because such Person is
the beneficial owner of 1% or less of any class of securities issued by the
Depositor or the Servicer or any Affiliate thereof, as the case may be.
INITIAL ADJUSTMENT DATE: With respect to each Sub-Pool 2 Mortgage Loan, the
first adjustment date following the origination of such Mortgage Loan.
INITIAL MORTGAGE RATE: With respect to each Sub-Pool 2 Mortgage Loan, the
Mortgage Rate in effect prior to the Initial Adjustment Date.
INITIAL MORTGAGE LOAN: A Mortgage Loan assigned and transferred to the
Trustee on the Closing Date.
INITIAL MORTGAGE LOANS: Collectively, the Initial Mortgage Loans.
INITIAL RESERVE ACCOUNT DEPOSIT: The amount deposited by the Depositor in
the Reserve Account on the Closing Date pursuant to Section 6.14, which amount
is $4,200,432.77.
INSURANCE AGREEMENT: The agreement dated as of the Closing Date by and
among the Certificate Insurer, the Depositor, the Servicer and the Trustee, as
amended from time to time by the parties thereto, relating to, among other
things, the Premium Percentage.
INSURANCE PROCEEDS: Proceeds paid to the Trustee or the Servicer by any
insurer (except the Certificate Insurer) or by the Servicer pursuant to a
deductible clause under
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a blanket policy insuring against fire and hazards of extended coverage on all
of the Mortgage Loans pursuant to Section 5.08, in either event pursuant to any
insurance policy covering a Mortgage Loan, Mortgaged Property, or REO Property
or any other insurance policy net of any expenses which are incurred by the
Servicer or the Trustee in connection with the collection of such proceeds and
not otherwise reimbursed to the Servicer, other than proceeds to be applied to
the restoration or repair of the Mortgaged Property, or released to the
Mortgagor in accordance with customary first and second mortgage servicing
procedures in the case of Sub-Pool 1 Mortgage Loans and customary first
mortgage servicing procedures in the case of Sub-Pool 2 Mortgage Loans.
INSURED PAYMENT: With respect to each Remittance Date, the amount, if any,
by which (1) the Class A Remittance Amount (excepting clause (c)(vi) of the
definition of Class A Principal Remittance Amount to the extent such amount is
due but not paid by the Depositor) exceeds (2) the sum of (a) the Available
Remittance Amount (minus the Monthly Premium withdrawable from the Certificate
Account to be paid to the Certificate Insurer pursuant to Section 6.02(i)), (b)
the lesser of (i) if such Remittance Date is prior to the Cross-Over Date, the
Excess Spread deposited into the Certificate Account pursuant to Section 5.04(i)
as of such Remittance Date and (ii) the Subordinated Amount, (c) any amount
transferred from the Reserve Account to the Certificate Account pursuant to
Section 6.14(c), and (d) the aggregate amount of any previous Insured Payments
for which the Certificate Insurer has not been reimbursed pursuant to Section
6.06(b), together with that portion of the amounts described in the preceding
clause (1) that represents interest accrued in respect of such Insured Payments
in accordance with the definition of Class A Carry-Forward Amount; provided,
however, that the determination of Insured Payments shall not be affected in any
way by any recharacterization of the transactions contemplated by this Agreement
as a financing in any bankruptcy, insolvency or similar proceeding to which the
Depositor may be subject and the Available Remittance Amount shall for the
purpose of this definition be deemed to be decreased by the amount thereof that
has been deposited in the Certificate Account but may not be withdrawn therefrom
pursuant to a stay pursuant to Section 362 of the United States Bankruptcy Code.
INTEREST COVERAGE ACCOUNT: The Account established and maintained pursuant
to Section 6.13, which must be an Eligible Account. The Interest Coverage
Account shall not be a part of the Trust Fund REMIC but shall be a part of the
Trust Fund.
INTEREST COVERAGE ADDITION: As to any Remittance Date, the sum of the
amounts described in Sections 6.13(b) and 6.13(c).
INTEREST COVERAGE AMOUNT: The amount to be paid by the Depositor to the
Trustee for deposit into the Interest Coverage Account pursuant to Section
6.13(a) on the Closing Date, which amount is $1,893,361.05.
LIQUIDATED MORTGAGE LOAN: Any defaulted Mortgage Loan or REO Property as to
which the Servicer has determined that all amounts which it reasonably and in
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good faith expects to recover have been recovered from or on account of such
Mortgage Loan or REO Property.
LIQUIDATION PROCEEDS: Any cash amounts received in connection with the
liquidation of defaulted Mortgage Loans, whether through trustee's sale,
foreclosure sale, REO Disposition or otherwise, and any other amounts required
to be deposited in the Principal and Interest Account pursuant to Section 5.10.
LOAN-TO-VALUE RATIO: The fraction, expressed as a percentage, the numerator
of which is the original Principal Balance of the related Mortgage Loan and the
denominator of which is the Appraised Value at the time of origination of the
related Mortgaged Property.
MAJORITY CERTIFICATEHOLDERS: The Holder or Holders of Class A Certificates
possessing Percentage Interests in excess of 51% in the aggregate.
MAXIMUM MORTGAGE RATE: With respect to each Sub-Pool 2 Mortgage Loan, the
maximum rate of interest set forth in the related Mortgage Note.
MINIMUM MORTGAGE RATE: With respect to each Sub-Pool 2 Mortgage Loan, the
minimum rate of interest set forth in the related Mortgage Note.
MIXED USE PROPERTY: With respect to Sub-Pool 1 Mortgage Loans, a property
which consists of a mixed residential and commercial structure.
MONTHLY ADVANCE: An advance made by the Servicer pursuant to Section 6.09.
MONTHLY PAYMENT: The scheduled monthly payment of principal and/or interest
required to be made by a Mortgagor on the related Mortgage Loan, as set forth in
the related Mortgage Note.
MONTHLY PREMIUM: The monthly premium payable to the Certificate Insurer
equal to the product of (i) one-twelfth the then applicable Premium Percentage
and (ii) the then outstanding Class A Principal Balance.
MOODY'S: Moody's Investors Service, Inc. or any successor thereto.
MORTGAGE: The mortgage, deed of trust, Land Trust Mortgage or other
instrument creating a first or second lien in accordance with applicable law on
a Mortgaged Property.
MORTGAGE FILE: As described in Exhibit A annexed hereto.
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MORTGAGE IMPAIRMENT INSURANCE POLICY: As described in Section 5.08.
MORTGAGE LOAN: An individual mortgage loan which is assigned and
transferred to the Trustee pursuant to this Agreement or a Subsequent Transfer
Instrument, together with the rights and obligations of a holder thereof and
payments thereon and proceeds therefrom, the Mortgage Loans originally subject
to this Agreement being identified on the Mortgage Loan Schedule annexed hereto
as Exhibits H-1 and H-2. As applicable, Mortgage Loan shall be deemed to refer
to the related REO Property.
MORTGAGE LOAN SCHEDULE: With respect to each Sub-Pool, the schedule of
Mortgage Loans attached hereto as Exhibit H-1 or H-2, as supplemented by each
schedule of Subsequent Mortgage Loans attached to a Subsequent Transfer
Instrument, as such schedule may be amended or supplemented from time to time,
such schedule identifying each Mortgage Loan by address of the Mortgaged
Property and the name of the Mortgagor and setting forth as to each Mortgage
Loan the following information: (i) the Principal Balance as of the Cut-off Date
or Subsequent Cut-off Date, (ii) the account number, (iii) the original
principal amount, (iv) the Loan-to-Value Ratio or Combined Loan-to-Value Ratio,
as the case may be, as of the date of origination of the related Mortgage Loan,
(v) the Due Date, (vi) the first date on which a Monthly Payment is due under
the Mortgage Note, (vii) the Monthly Payment, (viii) the maturity date of the
related Mortgage Note, (ix) the remaining number of months to maturity as of the
Cut-off Date or Subsequent Cut-off Date, (x) the applicable Mortgaged Property
State, (xi) the current Mortgage Rate and (xii) with respect to the Sub-Pool 2
Mortgage Loans only: (1) the Gross Margin, (2) the next Adjustment Date after
the Cut-off Date, (3) the Maximum Mortgage Rate, (4) the Minimum Mortgage Rate
and (5) the Index.
MORTGAGE NOTE: The note or other evidence of indebtedness evidencing the
indebtedness of a Mortgagor under a Mortgage Loan.
MORTGAGE RATE: With respect to each Sub-Pool 1 Mortgage Loan, the fixed
annual rate of interest borne by the related Mortgage Note, as shown on the
related Mortgage Loan Schedule. With respect to each Sub-Pool 2 Mortgage Loan,
the annual rate of interest borne by the related Mortgage Note from time to
time.
MORTGAGED PROPERTY: A Single Family Property, Multifamily Property or Mixed
Use Property which secures a Mortgage Loan.
MORTGAGOR: The obligor on a Mortgage Note.
MULTIFAMILY PROPERTY: With respect to Sub-Pool 1 Mortgage Loans, a
residential property consisting of five or more dwelling units.
NET EXCESS AMOUNT AVAILABLE: With respect to any particular Remittance
Date, the sum of (i) the Available Remittance Amount (reduced by the Monthly
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Premium to be paid to the Certificate Insurer pursuant to Section 6.04) and (ii)
any Insured Payments.
NET EXCESS SPREAD: With respect to any particular Remittance Date, the
Excess Spread remaining after the application thereof to make Required Payments.
NET LIQUIDATION PROCEEDS: Liquidation Proceeds net of (i) any
reimbursements to the Servicer made therefrom pursuant to Section 5.04(ii) and
(ii) any related accrued and unpaid Annual Trustee Expense Amounts as of the
date on which such Liquidation Proceeds were received.
NET MORTGAGE RATE: At any time, the per annum rate equal to the related
Mortgage Rate less the Servicing Fee Rate.
NONRECOVERABLE ADVANCES: With respect to any Mortgage Loan, (i) any
Servicing Advance or Monthly Advance previously made and not reimbursed from
late collections pursuant to Section 5.04, or (ii) a Servicing Advance proposed
to be made in respect of a Mortgage Loan or REO Property which, in the good
faith business judgment of the Servicer would not be ultimately recoverable from
late collections, Released Mortgaged Property Proceeds, Insurance Proceeds or
Liquidation Proceeds on such Mortgage Loan or REO Property.
NON-UNITED STATES PERSON: Any Person other than a United States Person.
NOTICE: As defined in Section 6.06(b).
OFFICER'S CERTIFICATE: A certificate delivered to the Trustee signed by the
President or an Executive Vice President or a Senior Vice President or a Vice
President or an Assistant Vice President of either the Depositor or the
Servicer, as required by this Agreement.
ONE-MONTH LIBOR: With respect to the Class A Certificates, as determined by
the Trustee on the second Business Day preceding the beginning of each Accrual
Period, the London interbank offered rate for the relevant Accrual Period for
one-month U.S. dollar deposits for a term equal to the relevant Accrual Period
as such rates appear on Telerate Page 3750, as of 11:00 a.m. (London time) on
such date. If such rate does not appear on Telerate Page 3750, the rate for that
day will be determined on the basis of the rates at which deposits in United
States dollars are offered by the Reference Banks at approximately 11:00 a.m.,
London time, on that day to banks in the London interbank market for a term
equal to the relevant Accrual Period. The Trustee will request the principal
London office of each of the Reference Banks to provide a quotation of its rate.
If at least two such quotations are provided, the rate for that day will be the
arithmetic mean of the quotations. If fewer than two quotations are provided as
requested, the rate for that day will be the arithmetic mean of the rates quoted
by major banks in New York City, selected by the Servicer, at approximately
11:00 a.m., New York City time, on that day for loans in United States dollars
to leading European banks for a term equal to the
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relevant Accrual Period. If the Trustee is unable to determine One Month LIBOR
for an Accrual Period, the rate for such Accrual Period shall be One Month LIBOR
as determined for the previous Accrual Period. Notwithstanding the foregoing,
however, One-Month LIBOR for an Accrual Period shall not be based on One-Month
LIBOR for the previous Accrual Period for three consecutive Accrual Periods. If,
under the priorities described above, One-Month LIBOR for an Accrual Period
would be based on One-Month LIBOR for the previous Accrual Period for the second
consecutive Accrual Period, the Trustee shall select a comparable alternative
index (over which the Trustee has no control) used for determining one-month
Eurodollar lending rates that is calculated and published (or otherwise made
available) by an independent third party.
OPINION OF COUNSEL: A written opinion of counsel, who may, without
limitation, be counsel for the Servicer, reasonably acceptable to the Trustee
and experienced in matters relating to the subject of such opinion; except that
any opinion of counsel relating to (a) the qualification of the Trust Fund REMIC
as a REMIC or (b) compliance with the REMIC Provisions must be an opinion of
counsel who (i) does not have any direct financial interest or any material
indirect financial interest in the Servicer or in any Person known to a
Responsible Officer of the Trustee to be an Affiliate thereof and (ii) is not
connected with the Servicer as an officer, employee, director or person
performing similar functions.
ORIGINAL CLASS A PRINCIPAL BALANCE: $220,000,000.
ORIGINAL POOL PRINCIPAL BALANCE: $140,827,927.17, equal to the sum of the
Original Sub-Pool 1 Principal Balance and the Original Sub-Pool 2 Principal
Balance.
ORIGINAL PRE-FUNDED AMOUNT: With respect to each Sub-Pool, the amount
deposited by the Depositor in the related Pre-Funding Account on the Closing
Date, which amount is $33,147,497.60 for Sub-Pool 1, and $50,514,371.15 for
Sub-Pool 2.
ORIGINAL SUB-POOL PRINCIPAL BALANCE: Either the Original Sub-Pool 1
Principal Balance or the Original Sub-Pool 2 Principal Balance, as applicable.
ORIGINAL SUB-POOL 1 PRINCIPAL BALANCE: The aggregate Cut-off Date Principal
Balances of the Sub-Pool 1 Initial Mortgage Loans, which amount is equal to
$41,875,267.67.
ORIGINAL SUB-POOL 2 PRINCIPAL BALANCE: The aggregate Cut-off Date Principal
Balances of the Sub-Pool 2 Initial Mortgage Loans, which amount is equal to
$98,952,659.50.
OVERCOLLATERALIZATION AMOUNT: With respect to any particular Remittance
Date, the excess, if any, of (i) the sum of (a) the Pool Principal Balance and
(b) the Pre-Funded Amounts over (ii) the Class A Principal Balance after giving
effect to distributions of the Class A Principal Remittance Amount on such
Remittance Date.
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OWNER-OCCUPIED MORTGAGED PROPERTY: A Residential Dwelling that the related
Mortgagor represented an intent to occupy as such Mortgagor's primary, secondary
or vacation residence at the origination of the Mortgage Loan.
PAYING AGENT: Initially, the Trustee, and thereafter, the Trustee or any
other Person that meets the eligibility standards for the Paying Agent specified
in Section 14.13 and is authorized by the Trustee to make payments on the
Certificates on behalf of the Trustee.
PERCENTAGE INTEREST: With respect to a Class A Certificate, the portion of
the Class evidenced by such Certificate, expressed as a percentage rounded to
four decimal places, equivalent to a fraction the numerator of which is the
original dollar amount as of the Closing Date represented by such Certificate
and the denominator of which is the Original Class A Principal Balance, as
applicable. With respect to the Class R Certificates, the portion of the Class
evidenced by such Certificate as stated on the face thereof; provided, however,
that no more than 100% Percentage Interests in the Class R Certificates shall be
outstanding at any one time.
PERIODIC RATE CAP: With respect to each Sub-Pool 2 Mortgage Loan, the
provision in each Mortgage Note that limits permissible increases and decreases
in the Mortgage Rate on any Adjustment Date, (i) with respect to the Sub-Pool 2
Mortgage Loans with a One-Year Treasury Index, to not more than two percentage
points, and (ii) with respect to the Sub-Pool 2 Mortgage Loans with a Six-Month
LIBOR Index (the "Six-Month LIBOR Loans"), to not more than one percentage
point, or, with respect to the Six-Month LIBOR Loans which are subject to an
adjustment after an initial twenty-four month period, increase to not more than
two percentage points on the initial Adjustment Date only.
PERMITTED INSTRUMENTS: As used herein, Permitted Instruments shall include
the following:
(i) direct general obligations of, or obligations fully and
unconditionally guaranteed as to the timely payment of principal and
interest by, the United States or any agency or instrumentality thereof,
provided such obligations are backed by the full faith and credit of the
United States, FHLMC senior debt obligations, and FNMA senior debt
obligations, but excluding any of such securities whose terms do not
provide for payment of a fixed dollar amount upon maturity or call for
redemption;
(ii) federal funds, certificates of deposit, time and demand deposits
and banker's acceptances of any bank or trust company incorporated under
the laws of the United States or any state thereof (in each case having
maturities of less than 365 days), provided that the short-term debt
obligations of such bank or trust company at the date of acquisition
thereof have been rated "A-1" or better by S&P and Prime-1 by Moody's;
(iii) deposits of any bank or savings and loan association, provided
that the long-term unsecured debt obligations of such bank or savings and
loan association have
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been rated Baa3 or better by Moody's or "BBB-" or better by S&P and which
has combined capital, surplus and undivided profits of at least $3,000,000,
which deposits are insured by the Bank Insurance Fund or the Savings
Association Insurance Fund of the FDIC;
(iv) commercial paper (having original maturities of not more than 180
days) or demand notes rated "A-1" or better by S&P and Prime-1 by Moody's
and issued by an entity having a long-term rating of A2 or better by
Moody's;
(v) investments in money market funds rated "AAAm" or "AAAm-G" by S&P
and Aaa by Moody's; and
(vi) investments approved by S&P, Moody's and the Certificate Insurer
in writing delivered to the Trustee;
provided that no instrument described hereunder shall evidence either the right
to receive (a) only interest with respect to the obligations underlying such
instrument or (b) both principal and interest payments derived from obligations
underlying such instrument and the interest and principal payments with respect
to such instrument provided a yield to maturity at par greater than 120% of the
yield to maturity at par of the underlying obligations; and provided, further,
that no instrument described hereunder may be purchased at a price greater than
par.
PERMITTED TRANSFEREE: Any transferee of a Class R Certificate other than a
Disqualified Organization or Non-United States Person.
PERSON: Any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, national banking association,
unincorporated organization or government or any agency or political subdivision
thereof.
POOL PRINCIPAL BALANCE: As of any date of determination, the aggregate of
the Sub-Pool 1 Principal Balance and the Sub-Pool 2 Principal Balance.
PREFERENCE AMOUNT: As defined in Section 6.06(b).
PRE-FUNDED AMOUNT: With respect to each Sub-Pool and with respect to any
Determination Date, the amount on deposit in the related Pre-Funding Account.
PRE-FUNDING ACCOUNT: With respect to each Sub-Pool, the account established
and maintained pursuant to Section 6.12. With respect to Sub-Pool 1, the Pre-
Funding Account shall be known as the Sub-Pool 1 Pre-Funding Account and with
respect to Sub-Pool 2, the Pre-Funding Account shall be known as the Sub-Pool 2
Pre-Funding Account.
PREMIUM PERCENTAGE: With respect to any Remittance Date, the percentage
designated as such in the Insurance Agreement.
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PREPAYMENT ASSUMPTION: With respect to Sub-Pool 1, 2% per annum of the then
outstanding principal balance of the Sub-Pool 1 Mortgage Loans in the first
month of the life of the Sub-Pool 1 Mortgage Loans, and an additional 1.2% per
annum in each month thereafter until the twenty-first month then, beginning in
the twenty-first month and in each month thereafter during the life of the
Sub-Pool 1 Mortgage Loans, 26% per annum each month. With respect to Sub-Pool 2,
an assumed constant rate of prepayment equal to 26% per annum.
PRINCIPAL AND INTEREST ACCOUNT: With respect to each Sub-Pool, the
principal and interest account established by the Servicer pursuant to Section
5.03. With respect to Sub-Pool 1, the Principal and Interest Account shall be
known as the Sub-Pool 1 Principal and Interest Account and with respect to
Sub-Pool 2, the Principal and Interest Account shall be known as the Sub-Pool 2
Principal and Interest Account.
PRINCIPAL BALANCE: With respect to any Mortgage Loan or related REO
Property, at any date of determination, (i) the Cut-off Date Principal Balance
of such Mortgage Loan (or the principal balance outstanding as of the Subsequent
Cut-off Date with respect to a Subsequent Mortgage Loan or as of the applicable
substitution date with respect to a Qualified Substitute Mortgage Loan), after
application of principal payments received on or before such Cut-off Date (or on
or before such Subsequent Cut-off Date or substitution date), minus (without
duplication) (ii) the sum of (a) the principal portion of the Monthly Payments
received during each Due Period ending prior to the most recent Remittance Date
and deposited in the related Principal and Interest Account pursuant to Section
5.03, and (b) all Principal Prepayments, Curtailments, Excess Payments,
Insurance Proceeds, Net Liquidation Proceeds, Released Mortgaged Property
Proceeds and net income from any REO Property to the extent applied by the
Servicer as recoveries of principal, which were distributed pursuant to Section
6.06 on any previous Remittance Date. The Principal Balance of any Liquidated
Mortgage Loan in the month following the month in which such loan became a
Liquidated Mortgage Loan is zero.
PRINCIPAL PAYMENT TABLE: The table set forth as Exhibit P.
PRINCIPAL PREPAYMENT: Any payment or other recovery of principal on a
Mortgage Loan equal to the outstanding principal balance thereof, received in
advance of the final scheduled Due Date which is intended to satisfy a Mortgage
Loan in full.
PROPOSED SUBSEQUENT MORTGAGE LOAN SCHEDULE: With respect to each Sub-Pool,
the proposed schedule of mortgage loans or potential mortgage loans from which
the majority of the Subsequent Mortgage Loans will be obtained, attached hereto
as Exhibit R.
PROSPECTUS: The prospectus and prospectus supplement prepared by the
Depositor in connection with the initial issuance and sale of the Class A
Certificates.
PURCHASE PRICE: As defined in Section 5.11.
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QUALIFIED MORTGAGE: "Qualified Mortgage" shall have the meaning set forth
from time to time in the definition thereof at Section 860G(a)(3) of the Code
(or any successor statute thereto).
QUALIFIED SUBSTITUTE MORTGAGE LOAN: A Mortgage Loan substituted by the
Depositor for a Deleted Mortgage Loan pursuant to Section 2.05 or 3.03, which,
(A) with respect to any Sub-Pool 1 Mortgage Loan, (i) has a fixed
mortgage interest rate of not less than (and not more than two percentage
points higher than) the Mortgage Rate of the Deleted Mortgage Loan; (ii)
relates to the same type of Residential Dwelling as the Deleted Mortgage
Loan and has the same lien priority as the Deleted Mortgage Loan; (iii) has
a remaining term to maturity no greater than (and not more than one year
less than that of) the Deleted Mortgage Loan; (iv) has a Loan-to-Value
Ratio, or a Combined Loan-to-Value Ratio, as the case may be, no higher
than that of the Deleted Mortgage Loan; (v) has a principal balance (after
application of all payments received on or prior to the date of
substitution) equal to or less than the Principal Balance of the Deleted
Mortgage Loan as of such date; (vi) satisfies the criteria set forth from
time to time in the definition of "qualified replacement mortgage" at
Section 860G(a)(4) of the Code (or any successor statute thereto); (vii)
has the same or lower credit risk, as measured by credit risk category,
under the Depositor's underwriting guidelines; and (viii) complies with
each representation and warranty set forth in Sections 3.01, 3.02(a) and
3.02(b), and
(B) with respect to any Sub-Pool 2 Mortgage Loan, (i) has a Maximum
Mortgage Rate no lower than (and not more than two percentage points higher
than) the Maximum Mortgage Rate of the Deleted Mortgage Loan, and has a
Minimum Mortgage Rate no lower than (and not more than one percentage point
higher than) the Minimum Mortgage Rate of the Deleted Mortgage Loan; (ii)
has the same Index and Periodic Rate Cap as that of the Deleted Mortgage
Loan and a Gross Margin not less than that of the Deleted Mortgage Loan
and, if Mortgage Loans equal to 1% or more of the Pool Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date have become Deleted
Mortgage Loans, not more than two percentage points more than that of the
Deleted Mortgage Loan; (iii) shall be accruing interest at a rate no lower
than and not more than 1% per annum higher than, that of the Deleted
Mortgage Loan; (iv) has a principal balance (after application of all
payments received on or prior to the date of substitution) equal to or less
than the Principal Balance of the Deleted Mortgage Loan as of such date;
(v) has a Loan-to-Value Ratio no higher than that of the Deleted Mortgage
Loan; (vi) has a remaining term to maturity no greater than (and not more
than one year less than that of) the Deleted Mortgage Loan; (vii) satisfies
the criteria set forth from time to time in the definition of "qualified
replacement mortgage" at Section 860G(a)(4) of the Code (or any successor
statute thereto); (viii) has the same or lower credit risk, as measured by
credit risk category, under the Depositor's underwriting guidelines; (ix)
has a Net Mortgage Rate (net of any portion of the interest on such
Mortgage Loan that may be retained by the Depositor) within two percentage
points of that of the Deleted Mortgage Loan; and
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(x) complies with each representation and warranty set forth in Sections
3.01, 3.02(a) and 3.02(c).
REALIZED LOSS: With respect to each Liquidated Mortgage Loan, an amount
(not less than zero or greater than the related Principal Balance as of the date
of liquidation) equal to the outstanding Principal Balance of such Mortgage Loan
as of the date of liquidation minus that portion of Net Liquidation Proceeds
actually distributed to Class A Certificateholders pursuant to Section 6.06(c)
in respect of such Liquidated Mortgage Loan.
RECORD DATE: The Business Day immediately preceding the related Remittance
Date.
REFERENCE BANKS: Such leading banks selected by the Trustee and engaged in
transactions in Eurodollar deposits in the international Eurocurrency market.
REIMBURSABLE AMOUNTS: As of any date of determination, an amount payable to
the Servicer or the Depositor with respect to (i) Monthly Advances and Servicing
Advances not previously reimbursed and (ii) any advances reimbursable pursuant
to Section 9.01 and not previously reimbursed pursuant to Section 6.03(c) or
6.06(c).
RELEASED MORTGAGED PROPERTY PROCEEDS: As to any Mortgage Loan, proceeds
received by the Servicer in connection with (a) a taking of an entire Mortgaged
Property by exercise of the power of eminent domain or condemnation or (b) any
release of part of the Mortgaged Property from the lien of the related Mortgage,
whether by partial condemnation, sale or otherwise; which are not released to
the Mortgagor in accordance with applicable law, customary mortgage servicing
procedures and this Agreement.
REMIC: A "real estate mortgage investment conduit" within the meaning of
Section 860D of the Code.
REMIC PROVISIONS: Provisions of the federal income tax law relating to real
estate mortgage investment conduits, which appear at Sections 860A through 860G
of the Code, and any related provisions and proposed, temporary and final
Treasury regulations and published rulings, notices and announcements
promulgated thereunder, as the foregoing may be in effect from time to time.
REMITTANCE DATE: The 25th day of any month or if such 25th day is not a
Business Day, the first Business Day immediately following, commencing on April
25, 1997.
RENTS FROM REAL PROPERTY: With respect to any REO Property relating to a
Sub-Pool 1 Multifamily Loan or Sub-Pool 1 Mixed Use Loan gross income of the
character described in Section 856(d) of the Code.
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REO DISPOSITION: The final sale of a Mortgaged Property acquired in
foreclosure or by deed in lieu of foreclosure.
REO PROPERTY: As defined in Section 5.10.
REQUIRED OVERCOLLATERALIZATION AMOUNT: At any time, the
overcollateralization required by the Certificate Insurer, set forth as the
"Required Overcollateralization Amount" in the Insurance Agreement.
REQUIRED PAYMENTS: With respect to any particular Remittance Date, the
amount required to pay the Class A Interest Remittance Amount, the Class A
Principal Remittance Amount, the Annual Trustee Expense Amount and the Monthly
Premium to be paid to the Certificate Insurer pursuant to Section 6.04.
RESERVE ACCOUNT: The Account established and maintained pursuant to Section
6.14, which must be an Eligible Account.
RESIDENTIAL DWELLING: A one- to four-family dwelling, a unit in a planned
unit development, a unit in a condominium development.
RESPONSIBLE OFFICER: When used with respect to the Trustee, any officer
assigned to the Asset-Backed Securities Trust Services Department (or any
successor thereto), including any Vice President, Senior Trust Officer, Trust
Officer, Assistant Trust Officer, any Assistant Secretary, any trust officer or
any other officer of the Trustee customarily performing functions similar to
those performed by any of the above officers and having direct responsibility
for the administration of this Agreement, and also, with respect to a particular
matter, any other officer, to whom such matter is referred because of such
officer's knowledge of and familiarity with the particular subject. When used
with respect to the Depositor or the Servicer, the President or any Executive
Vice President, Senior Vice President, Vice President, Assistant Vice President,
or any Secretary or Assistant Secretary, or any Treasurer or Assistant
Treasurer.
SERIES: 1997-1.
SERVICER: Lee Servicing Company, a division of Superior Bank FSB, or any
successor appointed as provided herein.
SERVICER'S CERTIFICATE: As defined in Section 6.08.
SERVICER'S MONTHLY REMITTANCE REPORT: A report prepared by the Servicer
substantially in the form of Exhibit Q.
SERVICING ADVANCES: All customary, reasonable and necessary "out of pocket"
costs and expenses incurred in connection with a default, delinquency or other
unanticipated event by the Servicer in the performance of its servicing
obligations, including,
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but not limited to, the cost of (i) the preservation, restoration and protection
of the Mortgaged Property, including without limitation advances in respect of
real estate taxes and assessments and insurance premiums on fire, hazard and
flood insurance policies, (ii) any enforcement or judicial proceedings,
including foreclosures, (iii) the management and liquidation of an REO Property,
(iv) compliance with the obligations under Sections 5.01(e), 5.02, 5.05, 5.07,
5.15 and Article XIII, which Servicing Advances are reimbursable to the Servicer
to the extent provided in this Agreement and (v) in connection with the
liquidation of a Sub-Pool 1 Mortgage Loan, expenditures relating to the purchase
or maintenance of the First Lien pursuant to Section 5.14, for all of which
costs and expenses the Servicer is entitled to reimbursement in accordance with
this Agreement. Notwithstanding anything herein to the contrary, no Servicing
Advance shall be required to be made hereunder if such Servicing Advance would,
if made, constitute a Nonrecoverable Advance. The determination by the Servicer
that it has made a Nonrecoverable Advance or that any proposed Servicing
Advance, if made, would constitute a Nonrecoverable Advance, shall be evidenced
by an Officer's Certificate delivered to the Certificate Insurer, the Depositor
and the Trustee no later than the Business Day following such determination.
SERVICING COMPENSATION: The Servicing Fee and other amounts to which the
Servicer is entitled pursuant to Section 7.03.
SERVICING FEE: As to each Mortgage Loan (including any Mortgage Loan as to
which the related Mortgaged Property has become REO Property), the annual fee
payable to the Servicer. Such fee shall be calculated and payable monthly only
from the amounts received in respect of interest on such Mortgage Loan and shall
be computed by multiplying (i) the principal balance on which interest accrues
on the Mortgage Loan by (ii) the Servicing Fee Rate and by further multiplying
the product thereof by (iii) a fraction, the numerator of which is the number of
days in the period elapsed since the date to which interest was last paid by the
Mortgagor or advanced by the Servicer and the denominator of which is the number
of days in the annual period for which interest accrues on the related Mortgage
Loan. The Servicing Fee is payable solely from the interest portion of (i)
Monthly Payments, (ii) Liquidation Proceeds, (iii) Insurance Proceeds or (iv)
Released Mortgaged Property Proceeds collected by the Servicer, or as otherwise
provided in Section 5.04. The Servicing Fee includes any servicing fees owed or
payable to any Subservicer.
SERVICING FEE RATE: 0.65% per annum.
SERVICING OFFICER: Any officer of the Servicer involved in, or responsible
for, the administration and servicing of the Mortgage Loans whose name and
specimen signature appears on a list of servicing officers annexed to an
Officer's Certificate furnished on the Closing Date to the Trustee and the
Certificateholders by the Servicer, as such list may from time to time be
amended.
SINGLE FAMILY PROPERTY: A one- to-four family residential property or
individual condominium unit.
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S&P: Standard & Poor's Ratings Services, A Division of the McGraw-Hill
Companies, Inc., or any successor thereto.
SPECIAL POWER OF ATTORNEY: As defined in Section 2.04(f).
STARTUP DAY: The day designated as such pursuant to Section 13.01.
SUB-POOL: Either Sub-Pool 1 or Sub-Pool 2.
SUB-POOL FACTOR: With respect to each Sub-Pool and as of any date of
calculation, the related Sub-Pool Principal Balance after giving effect to the
distributions to be made on the related Remittance Date as of such date divided
by the sum of the Original Sub-Pool Principal Balance with respect to such
Sub-Pool and the Principal Balances of all Subsequent Mortgage Loans with
respect to such Sub-Pool as of the Subsequent Cut-off Date.
SUB-POOL PRINCIPAL BALANCE: Either the Sub-Pool 1 Principal Balance or the
Sub-Pool 2 Principal Balance.
SUB-POOL 1: (i) the Sub-Pool 1 Mortgage Loans as from time to time are
subject to this Agreement, together with the Mortgage Files relating thereto and
all proceeds thereof, (ii) such assets as from time to time are identified as
REO Property with respect to Sub-Pool 1 or are deposited in the Certificate
Account with respect to the Sub-Pool 1 Mortgage Loans, the Sub-Pool 1 Principal
and Interest Account, the Trustee Expense Account with respect to the Sub-Pool 1
Mortgage Loans, the Sub-Pool 1 Pre-Funding Account, the Interest Coverage
Account with respect to the Sub-Pool 1 Mortgage Loans, and the Reserve Account
with respect to the Sub-Pool 1 Mortgage Loans, including any amounts on deposit
in the foregoing accounts and invested in Permitted Instruments, (iii) the
Trustee's rights under all insurance policies with respect to the Sub-Pool 1
Mortgage Loans required to be maintained pursuant to this Agreement and any
Insurance Proceeds with respect thereto, (iv) the Certificate Insurance Policy,
(v) Liquidation Proceeds with respect to Sub-Pool 1 Mortgage Loans and (vi)
Released Mortgaged Property Proceeds with respect to Sub-Pool 1 Mortgage Loans.
The Depositor's Yield and amounts received after the Cut-off Date in the case of
the Sub-Pool 1 Initial Mortgage Loans, or after a Subsequent Cut-off Date in the
case of the Sub-Pool 1 Subsequent Mortgage Loans, in respect of interest accrued
on the Sub-Pool 1 Mortgage Loans on or prior to the Cut-off Date, or a
Subsequent Cut-off Date, as the case may be, do not constitute part of Sub-Pool
1.
SUB-POOL 1 INITIAL MORTGAGE LOANS: The Initial Mortgage Loans with respect
to Sub-Pool 1.
SUB-POOL 1 MORTGAGE LOANS: The Mortgage Loans subject to this Agreement
included in Sub-Pool 1.
SUB-POOL 1 MULTIFAMILY LOAN: A Sub-Pool 1 Mortgage Loan which is secured by
a residential property consisting of five or more dwelling units.
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SUB-POOL 1 MIXED USE LOAN: A Sub-Pool 1 Mortgage Loan which is secured by a
mixed residential and commercial structure.
SUB-POOL 1 PRE-FUNDING ACCOUNT: The Pre-Funding Account with respect to
Sub-Pool 1.
SUB-POOL 1 PRINCIPAL AND INTEREST ACCOUNT: The Principal and Interest
Account with respect to Sub-Pool 1.
SUB-POOL 1 PRINCIPAL BALANCE: As of any date of determination, the
aggregate Principal Balances of the Sub-Pool 1 Mortgage Loans.
SUB-POOL 1 SUBSEQUENT MORTGAGE LOAN: A Sub-Pool 1 Mortgage Loan assigned
and transferred by the Depositor to the Trustee pursuant to Section 2.10, such
Sub-Pool 1 Mortgage Loan being identified on the related Mortgage Loan Schedule
attached to a Sub-Pool 1 Subsequent Transfer Instrument.
SUB-POOL 1 SUBSEQUENT TRANSFER INSTRUMENT: Each Subsequent Transfer
Instrument dated as of a Subsequent Transfer Date executed by the Trustee and
the Depositor substantially in the form of Exhibit T, by which Sub-Pool 1
Subsequent Mortgage Loans are transferred and assigned to the Trustee.
SUB-POOL 2: (i) the Sub-Pool 2 Mortgage Loans as from time to time are
subject to this Agreement, together with the Mortgage Files relating thereto and
all proceeds thereof, (ii) such assets as from time to time are identified as
REO Property with respect to Sub-Pool 2 or are deposited in the Certificate
Account with respect to the Sub-Pool 2 Mortgage Loans, the Sub-Pool 2 Principal
and Interest Account, the Trustee Expense Account with respect to the Sub-Pool 2
Mortgage Loans, the Sub-Pool 2 Pre-Funding Account, the Interest Coverage
Account with respect to the Sub-Pool 2 Mortgage Loans, and the Reserve Account
with respect to the Sub-Pool 2 Mortgage Loans, including any amounts on deposit
in the foregoing accounts and invested in Permitted Instruments, (iii) the
Trustee's rights under all insurance policies with respect to the Sub-Pool 2
Mortgage Loans required to be maintained pursuant to this Agreement and any
Insurance Proceeds with respect thereto, (iv) the Certificate Insurance Policy,
(v) Liquidation Proceeds with respect to Sub-Pool 2 Mortgage Loans and (vi)
Released Mortgaged Property Proceeds with respect to Sub-Pool 2 Mortgage Loans.
The Depositor's Yield and amounts received after the Cut-off Date in the case of
the Sub-Pool 2 Initial Mortgage Loans, or after a Subsequent Cut-off Date in the
case of the Sub-Pool 2 Subsequent Mortgage Loans, in respect of interest accrued
on the Sub-Pool 2 Mortgage Loans on or prior to the Cut-off Date, or a
Subsequent Cut-off Date, as the case may be, do not constitute part of
Sub-Pool 2.
SUB-POOL 2 INITIAL MORTGAGE LOANS: The Initial Mortgage Loans with respect
to Sub-Pool 2.
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SUB-POOL 2 MORTGAGE LOANS. The Mortgage Loans subject to this Agreement
included in Sub-Pool 2.
SUB-POOL 2 PRE-FUNDING ACCOUNT: The Pre-Funding Account with respect to
Sub-Pool 2.
SUB-POOL 2 PRINCIPAL AND INTEREST ACCOUNT: The Principal and Interest
Account with respect to Sub-Pool 2.
SUB-POOL 2 PRINCIPAL BALANCE: As of any date of determination, the
aggregate Principal Balances of the Sub-Pool 2 Mortgage Loans.
SUB-POOL 2 SUBSEQUENT MORTGAGE LOAN: A Sub-Pool 2 Mortgage Loan assigned
and transferred by the Depositor to the Trustee pursuant to Section 2.10, such
Sub-Pool 2 Mortgage Loan being identified on the related Mortgage Loan Schedule
attached to a Sub-Pool 2 Subsequent Transfer Instrument.
SUB-POOL 2 SUBSEQUENT TRANSFER INSTRUMENT: Each Subsequent Transfer
Instrument dated as of a Subsequent Transfer Date executed by the Trustee and
the Depositor substantially in the form of Exhibit T, by which Sub-Pool 2
Subsequent Mortgage Loans are transferred and assigned to the Trustee.
SUBORDINATED AMOUNT: The amount set forth as such in the Insurance
Agreement.
SUBSERVICER: Any Person with whom the Servicer has entered into a
Subservicing Agreement and who satisfies any requirements set forth in Section
5.01(a) in respect of the qualification of a Subservicer.
SUBSERVICING AGREEMENT: Any agreement between the Servicer and any
Subservicer relating to subservicing and/or administration of certain Mortgage
Loans as provided in Section 5.01(a), a copy of which shall be delivered, along
with any modifications thereto, to the Trustee.
SUBSEQUENT CUT-OFF DATE: With respect to those Subsequent Mortgage Loans
which are transferred and assigned to the Trustee pursuant to a Subsequent
Transfer Instrument, the close of Business on the day prior to the related
Subsequent Transfer Date.
SUBSEQUENT MORTGAGE LOAN: A Sub-Pool 1 Subsequent Mortgage Loan or a
Sub-Pool 2 Subsequent Mortgage Loan.
SUBSEQUENT TRANSFER DATE: The date on which a Subsequent Mortgage Loan is
transferred and assigned to the Trustee, which date shall be no later than May
16, 1997.
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SUBSEQUENT TRANSFER INSTRUMENT: A Sub-Pool 1 Subsequent Transfer Instrument
or a Sub-Pool 2 Subsequent Transfer Instrument.
SUBSTITUTION ADJUSTMENT: As to any date on which a substitution occurs
pursuant to Sections 2.05 or 3.03, the amount (if any) by which the aggregate
principal balances (after application of principal payments received on or
before the date of substitution) of any Qualified Substitute Mortgage Loans as
of the date of substitution, are less than the aggregate of the Principal
Balances, together with accrued and unpaid interest thereon to the date of
substitution, of the related Deleted Mortgage Loans.
TAX MATTERS PERSON: The Person or Persons designated from time to time to
act as the "tax matters person" (within the meaning of the REMIC Provisions).
TAX MATTERS PERSON RESIDUAL INTEREST CERTIFICATE: The interest in the Class
R Certificates held by the Tax Matters Person pursuant to Section 13.01(c).
TAX RETURN: The federal income tax return on Internal Revenue Service Form
1066, "U.S. Real Estate Mortgage Investment Conduit Income Tax Return,"
including Schedule Q thereto, Quarterly Notice to Residual Interest Holders of
REMIC Taxable Income or Net Loss Allocation, or any successor forms, to be filed
on behalf of the Trust Fund REMIC, due to its classification as a REMIC under
the REMIC Provisions, together with any and all other information reports or
returns that may be required to be furnished the Certificateholders or filed
with the Internal Revenue Service or any other governmental taxing authority
under any applicable provision of federal, state or local tax laws.
TELERATE PAGE 3750: The display page currently so designated on the Dow
Jones Telerate Service (or such other page as may replace the page on that
service for the purpose of displaying comparable rates or prices).
TERMINATION PRICE: As defined in Section 11.01.
TRANSFER AFFIDAVIT: As defined in Section 4.02(c)(ii).
TRANSFER CERTIFICATE: As defined in Section 4.02(c)(ii).
TRIGGER EVENT: A trigger event shall occur if (i) with respect to any
Determination Date occurring prior to February 2002, the sum of (x) the
aggregate Realized Losses experienced as of such Determination Date and (y) the
Delinquency Calculation Amount with respect to such Determination Date exceeds
$16,634,693.87 or (ii) with respect to any Determination Date occurring prior to
February 2007, the sum of (x) the aggregate Realized Losses experienced as of
such Determination Date and (y) the Delinquency Calculation Amount with respect
thereto exceeds $22,179,591.83.
TRUST: AFC Mortgage Loan Asset Backed Certificates, Series 1997-1.
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TRUST FUND: Collectively, Sub-Pool 1 and Sub-Pool 2.
TRUST FUND REMIC: The Trust Fund, exclusive of the Interest Coverage
Account.
TRUSTEE: LaSalle National Bank, or its successor in interest, or any
successor trustee appointed as herein provided.
TRUSTEE EXPENSE ACCOUNT: The account established and maintained by the
Trustee in accordance with Section 6.03.
TRUSTEE'S MORTGAGE FILE: The documents delivered to the Trustee or the
Custodian pursuant to Section 2.04.
UNITED STATES PERSON: A citizen or resident of the United States, a
corporation, partnership or other entity created or organized in, or under the
laws of, the United States or any political subdivision thereof, or an estate
whose income is subject to United States federal income tax regardless of its
source, or a trust if a court within the United States is able to exercise
primary supervision over the administration of the trust and one or more United
States fiduciaries have the authority to control all substantial decisions of
the trust.
UNRECOVERED CLASS A PORTION: With respect to any Remittance Date, the
excess, if any, of (A) the Class A Principal Balance minus the sum of (i) all
amounts (excluding that portion of Insured Payments, if any, to be made in
respect of principal) to be distributed to the Class A Certificateholders in
respect of principal on such Remittance Date on account of amounts described in
clauses (c)(i) through (c)(iii), inclusive, and clauses (c)(v) (to the extent
the amount in clause (c)(v) represents a right to receive principal not
previously covered by an Insured Payment), (c)(vi) and (c)(viii) of the
definition of Class A Principal Remittance Amount, (ii) all other amounts to be
distributed to the Class A Certificateholders constituting Additional Principal
to the extent necessary to reach the Required Overcollateralization Amount on
such Remittance Date, and (iii) all amounts distributed to the Class A
Certificateholders as a mandatory prepayment pursuant to the last paragraph of
Section 6.06(c) (only on the Remittance Date occurring on May 27, 1997), over
(B) the sum of (i) the Pool Principal Balance plus (ii) the Pre-Funded Amounts
minus the sum of (x) the principal portion of the Monthly Payments received
during the related Due Period and deposited in the Principal and Interest
Accounts pursuant to Section 5.03, and all Principal Prepayments, Curtailments,
Excess Payments, Insurance Proceeds, Net Liquidation Proceeds, Released
Mortgaged Property Proceeds and net income from any REO Property with respect to
Mortgage Loans to the extent applied by the Servicer as recoveries of principal
in respect of the related Mortgage Loans, which will be distributed to the Class
A Certificateholders pursuant to Section 6.06 on such Remittance Date, plus (y)
the aggregate of, as to each related Mortgage Loan which became a Liquidated
Mortgage Loan during the related Due Period, an amount (not less than zero or
greater than the related Principal Balance) equal to the excess, if any, of (i)
the Principal Balance of such Liquidated Mortgage Loan over (ii) the principal
portion of the related
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Net Liquidation Proceeds included in item (b)(iii) of the definition of Class A
Principal Remittance Amount that will actually be distributed to Class A
Certificateholders on such Remittance Date, pursuant to Sections 6.06(c)(X)(ii)
and 6.06(c)(Y)(ii).
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ARTICLE II
SALE AND CONVEYANCE OF THE TRUST FUND
Section 2.01 Sale and Conveyance of Trust Fund; Priority and Subordination
of Ownership Interests.
(a) The Depositor does hereby sell, transfer, assign, set over and convey
without recourse to the Trustee, but subject to the subordination described
below in this Section and the other terms and provisions of this Agreement, all
of the right, title and interest of the Depositor in and to the Sub-Pool 1 and
Sub-Pool 2 Mortgage Loans, together with any amounts due after the Cut-off Date
with respect to the Initial Mortgage Loans or after a Subsequent Cut-off Date
with respect to the Subsequent Mortgage Loans (other than the Depositor's
Yield), and all other assets included or to be included in the Trust Fund for
the benefit of the Certificateholders.
(b) The rights of the Certificateholders to receive payments with respect
to the Mortgage Loans in respect of the Certificates, and all ownership
interests of the Certificate holders in such payments, shall be as set forth in
this Agreement. In this regard, all rights of the Class R Certificateholders to
receive payments in respect of the Class R Certificates are subject and
subordinate to the preferential rights of the Class A Certificateholders to
receive payments in respect of the Class A Certificates, to the extent set forth
herein. In accordance with the foregoing, the ownership interest of the Class R
Certificateholders in amounts deposited in the Principal and Interest Accounts
and the Certificate Account from time to time shall not vest unless and until
such amounts are distributed in respect of the Class R Certificates in
accordance with the terms of this Agreement.
Section 2.02 Possession of Mortgage Files.
(a) Upon the issuance of the Certificates, and upon delivery of each
Subsequent Mortgage Loan or Qualified Substitute Mortgage Loan, the ownership of
each Mortgage Note, the Mortgage and the contents of the related Mortgage File
is vested in the Trustee for the benefit of the Certificateholders.
(b) Pursuant to Section 2.04, the Depositor has delivered or caused to be
delivered to the Trustee or the Custodian each Trustee's Mortgage File with
respect to the Initial Mortgage Loans.
Section 2.03 Books and Records.
The sale of each Mortgage Loan shall be reflected on the Depositor's
balance sheets and other financial statements as a sale of assets by the
Depositor. The Depositor shall be responsible for maintaining, and shall
maintain, a complete set of books and records for each Mortgage Loan which shall
be clearly marked to reflect the ownership of each Mortgage Loan by the Trustee
for the benefit of the Certificateholders.
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Section 2.04 Delivery of Mortgage Loan Documents.
The Depositor, contemporaneously with the delivery of this Agreement, has
delivered or caused to be delivered to the Trustee or, if a Custodian has been
appointed pursuant to Section 12.12, to the Custodian, the Certificate Insurance
Policy and each of the following documents for each Initial Mortgage Loan. The
Depositor, contemporaneously with delivery of a Subsequent Transfer Instrument,
shall deliver or cause to be delivered to the Trustee or, if a Custodian has
been appointed pursuant to Section 12.12, to the Custodian, each of the
following documents for each related Subsequent Mortgage Loan.
(a) The original Mortgage Note, showing a complete chain of endorsements
and endorsed by the last endorsee thereof, "Pay to the order of
_____________________ [or LaSalle National Bank, as Trustee under the Pooling
and Servicing Agreement, dated as of March 1, 1997, Series 1997-1,] without
recourse" and signed, by facsimile or manual signature, by such last endorsee;
(b) Either: (i) the original Mortgage, with evidence of recording thereon,
(ii) a copy of the Mortgage certified as a true copy by a Responsible Officer of
the Depositor or by the closing attorney, or by an officer of the title insurer
or agent of the title insurer which issued the related title insurance policy,
or commitment therefor, if the original has been transmitted for recording until
such time as the original is returned by the public recording office or (iii) a
copy of the Mortgage certified by the public recording office in those instances
where the original recorded Mortgage has been lost;
(c) Either: (i) (A) the original Assignment of Mortgage from the last
assignee of the related Mortgage assigned to the Trustee, with evidence of
recording thereon, or (B) an original assignment of mortgage from the last
assignee of the related Mortgage assigned in blank, or (ii) if an original
Assignment of Mortgage has not yet been provided in accordance with clause (i),
an Assignment of Mortgage to the Trustee, certified by an appropriate officer or
approved signatory of the Depositor or the closing attorney or any officer of
the title insurer that issued the related title insurance policy, or commitment
therefor, or its duly authorized agent, as being a true and complete copy of the
original of such Assignment of Mortgage to the Trustee submitted for recording
(provided, however, that an appropriate officer or approved signatory of the
Depositor may complete one or more blanket certificates attaching copies of one
or more Assignments of Mortgage to the Trustee relating thereto) or (iii) a copy
of such original Assignment of Mortgage to the Trustee, with evidence of
recording thereon, certified to be true and complete by the Depositor or the
appropriate public recording office, in those instances where such original
Assignment of Mortgage has been recorded but subsequently lost; any such
Assignment of Mortgage may be made by blanket assignments for Mortgage Loans
secured by the Mortgaged Properties located in the same county, if permitted by
applicable law;
(d) The original policy of title insurance or a true copy thereof or, if
such policy has not yet been delivered by the insurer, the commitment or binder
to issue same;
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(e) Either: (i) originals of all intervening assignments, if any, showing a
complete chain of assignment from the originator to the last assignee of the
related Mortgage, including any recorded warehousing assignments, with evidence
of recording thereon, or, (ii) if the original intervening assignments have not
yet been returned from the recording office, a copy of the originals of such
intervening assignments together with a certificate of a Responsible Officer of
the Depositor or the closing attorney or an officer of the title insurer which
issued the related title insurance policy, or commitment therefor, or its duly
authorized agent certifying that the copy is a true copy of the original of such
intervening assignments or (iii) a copy of the intervening assignment certified
by the public recording office in those instances where the original recorded
intervening assignment has been lost;
(f) Either: (i) the original assumption agreement and/or modification
agreement, if any, with evidence of recording thereon, or (ii) if the original
of such agreement has not yet been returned from the recording office, a copy of
such original, certified by an appropriate officer or approved signatory of the
Depositor or the closing attorney or any officer of the title insurer that
issued the related title insurance policy, or commitment therefor, or its duly
authorized agent, as being a true and complete copy of the original of such
assumption and modification agreement submitted for recording, or (iii) a copy
of an original assumption and modification agreement, with evidence of recording
thereon, certified to be true and complete by the Depositor or the appropriate
public recording office, in those instances where such original recorded
assumption or modification agreement has been lost; and
Within 45 days after the Closing Date, with respect to each Sub-Pool 1
Multifamily Loan and Sub-Pool 1 Mixed Use Loan, (i) if such item is a document
separate from the Mortgage either (A) an original copy of the related Assignment
of Leases, if any (with recording information indicated thereon), or (B) if the
original of such Assignment of Leases has not yet been returned from the
recording office, a copy of such original, certified by an appropriate officer
or approved signatory of the Depositor or the closing attorney or any officer of
the title insurer that issued the related title insurance policy, or commitment
therefor, or its duly authorized agent, as being a true and complete copy of the
original of such Assignment of Leases submitted for recording; (ii) an original
assignment of any related Assignment of Leases, if any (if such document is a
document separate from the Mortgage and not incorporated in the Assignment of
Mortgage), in blank and in recordable form; (iii) if such item is a document
separate from the Mortgage either (A) an original copy of all intervening
assignments of Assignment of Leases, if any (with recording information
indicated thereon), or (B) if the original of such intervening assignments of
Assignment of Leases has not yet been returned from the recording office, a copy
of such original, certified by an appropriate officer or approved signatory of
the Depositor or the closing attorney or any officer of the title insurer that
issued the related title insurance policy, or commitment therefor, or its duly
authorized agent, as being a true and complete copy of the original of such
intervening assignment of Assignment of Leases submitted for recording; (iv)
either, (A) a copy of the UCC-1 financing statement and any related continuation
statements, if any, each showing the Mortgagor as debtor and mortgagee as
secured party and each with evidence of filing thereon, or (B) if the copy of
the UCC-1 financing statement has not yet been returned from the filing office,
a copy of such UCC-1
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financing statement, certified by an appropriate officer or approved signatory
of the Depositor or the closing attorney or any officer of the title insurer
that issued the related title insurance policy, or commitment therefor, or its
duly authorized agent, as being a true and complete copy of the original of such
UCC-1 financing statement submitted for filing; and (v) an original executed
form UCC-2 or UCC-3 financing statement, in form suitable for filing, disclosing
the assignment in blank, of the security interest in the personal property
constituting security for repayment of the Mortgage Loan; and (vi) either (A) an
original copy of all intervening assignments of UCC-3 financing statements, if
any (with recording information indicated thereon), or (B) if the original of
such intervening assignments of UCC-3 financing statements has not yet been
returned from the recording office, a copy of such original, certified by an
appropriate officer or approved signatory of the Depositor or the closing
attorney or any officer of the title insurer that issued the related title
insurance policy, or commitment therefor, or its duly authorized agent, as being
a true and complete copy of the original of such intervening assignments of
UCC-3 financing statements submitted for recording. If in connection with any
Mortgage Loan the Depositor cannot deliver any such financing statement(s) with
evidence of filing thereon because such financing statement(s) has not yet been
returned by the public filing office where such financing statement has been
submitted for filing, then the Depositor shall deliver or cause to be delivered
a photocopy, or the secured party's carbon copy with the debtor's signature of
such financing statement(s) (certified by the Depositor to be a true and
complete copy) together with an officers' certificate stating that such
financing statement(s) has been dispatched to the appropriate public filing
office for filing.
Within 45 days after the Closing Date, the Servicer shall have completed
each Assignment of Mortgage and Assignment of Leases, if any, originally
assigned in blank to "LaSalle National Bank, as Trustee for AFC Mortgage Loan
Asset Backed Certificates, Series 1997-1, under the Pooling and Servicing
Agreement, dated as of March 1, 1997" and, within such period (or if later,
within 30 days after its receipt of the original recorded Mortgage and
intervening assignment), shall have submitted each such Assignment of Mortgage
to the appropriate public recording office for recording; provided however, that
the Servicer shall not be required to submit an Assignment of Mortgage for
recording with respect to a Mortgaged Property, where, in the Opinion of Counsel
to the Depositor (which opinion shall be delivered to the Certificate Insurer
within the 45-day or 30-day period, as applicable, specified herein), such
recordation of the Assignment of Mortgage is not required (i) to effect the sale
and conveyance of the Mortgage Loan by the Depositor to LaSalle National Bank,
as Trustee for AFC Mortgage Loan Asset Backed Certificates, Series 1997-1,
pursuant to and as provided in Section 2.01 or the granting and perfecting of
the security interest in the Mortgage Loan pursuant to and as provided in
Section 14.15 or (ii) to defeat any ownership, security interest or other
adverse claim to the Mortgage Loan by any creditor of the Depositor or by any
purported transferee of such Mortgage Loan in a purported transfer thereof by
the Depositor subsequent to such sale and conveyance. Any such Assignment of
Mortgage that is not required to be recorded pursuant to this paragraph shall be
delivered by the Depositor to the Trustee within such 45-day period. Each such
Assignment of Mortgage delivered by the Depositor to the Trustee shall, subject
to receipt of the original recorded Mortgage as described above, be in
recordable form. Within such 45-day period, the Depositor also shall deliver to
the Trustee
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an original executed power of attorney ("Special Power of Attorney"),
substantially in the form of Exhibit K, with respect to the Assignments of
Mortgage that are not required to be recorded under this paragraph, authorizing
the Trustee to record the Assignments of Mortgage if necessary or advisable to
protect the interests of the Certificateholders and the Certificate Insurer.
Pursuant to such power of attorney, the Trustee also may execute a new
Assignment of Mortgage for any Mortgage Loan if the original Assignment of
Mortgage delivered by the Depositor to the Trustee is not in recordable form at
such time as the Assignment of Mortgage is to be recorded by the Trustee.
Within 45 days after the Closing Date, the Servicer shall complete any
UCC-2 or UCC-3 financing statements with respect to the Sub-Pool 1 Multifamily
Loans and Sub-Pool 1 Mixed Use Loans, such that the assignee of creditor is
listed as "LaSalle National Bank, as Trustee for AFC Mortgage Loan Asset Backed
Certificates, Series 1997-1, under the Pooling and Servicing Agreement, dated as
of March 1, 1997." The Depositor shall no later than ten Business Days after the
receipt thereof, and in any event, within one year of the Closing Date, deliver
or cause to be delivered to the Trustee or the Custodian: (a) the original
recorded Mortgage in those instances where a copy thereof certified by the
Depositor was delivered to the Trustee or the Custodian; (b) the original
recorded Assignment of Mortgage from the Depositor to the Trustee, which,
together with any intervening assignments of Mortgage, evidences a complete
chain of assignment from the originator to the Trustee in those instances where
copies thereof certified by the Depositor were delivered to the Trustee or the
Custodian; (c) the title insurance policy required in clause (d) above; (d) the
original recorded assumption and modification agreement in those instances in
which a copy was delivered; (e) the original Assignment of Leases in those
instances in which a copy was delivered and (f) the copy of the UCC-1 financing
statement and any related continuation statements with evidence of filing
thereon returned from the recording office if a copy was previously delivered as
set forth in clause (iii)(B) above. Notwithstanding anything to the contrary
contained in this Section 2.04, in those instances where the public recording
office retains the original Mortgage, Assignment of Mortgage or the intervening
assignments of the Mortgage, Assignment of Leases or assignment of Assignment of
Leases after it has been recorded, the Depositor shall be deemed to have
satisfied its obligations hereunder upon delivery to the Trustee or the
Custodian of a copy of such Mortgage, Assignment of Mortgage or intervening
assignments of the Mortgage, Assignment of Leases or assignment of Assignment of
Leases certified by the public recording office to be a true copy of the
recorded original thereof. From time to time the Depositor may forward or cause
to be forwarded to the Trustee or the Custodian additional original documents
evidencing an assumption or modification of a Mortgage Loan. All Mortgage Loan
documents held by the Trustee or the Custodian as to each Mortgage Loan are
referred to herein as the "Trustee's Mortgage File."
All recording required pursuant to this Section 2.04 shall be accomplished
by and at the expense of the Depositor.
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Section 2.05 Acceptance by Trustee of the Trust Fund; Certain
Substitutions; Certification by Trustee.
(a) The Trustee agrees to execute and deliver on the Closing Date and on
each Subsequent Transfer Date an acknowledgment of receipt (or if a Custodian
has been appointed, a receipt by the Custodian) of, for each Mortgage Loan
transferred and assigned to the Trustee on such date, the items listed in
Section 2.04 (a) through (f) above, in the form attached as Exhibit F, and
declares that it will hold such documents and any amendments, replacements or
supplements thereto, as well as any other assets included in the definition of
Trust Fund and delivered to the Trustee or the Custodian, as Trustee in trust
upon and subject to the conditions set forth herein for the benefit of the
Certificateholders. The Trustee or Custodian (such Custodian being so obligated
under a Custodial Agreement) agrees, for the benefit of the Certificateholders,
to review (or cause to be reviewed) each Trustee's Mortgage File within 45 days
after the Closing Date (or, with respect to any Subsequent Mortgage Loan or
Qualified Substitute Mortgage Loan, within 45 days after the receipt by the
Trustee or Custodian thereof) and to deliver to the Depositor, the Servicer and
the Certificate Insurer a certification in the form attached hereto as Exhibit
F-1 to the effect that, as to each Mortgage Loan listed in the related Mortgage
Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan
specifically identified in such certification as not covered by such
certification) and except as noted therein, (i) all documents required to be
delivered to it pursuant to this Agreement are in its possession or in the
possession of the Custodian on its behalf (other than items listed in Section
2.04(f) above), (ii) any and all documents delivered by the Depositor pursuant
to Section 2.04 above have been reviewed by it or the Custodian on its behalf
and have not been mutilated, damaged, torn or otherwise physically altered
(handwritten additions, changes or corrections shall not constitute physical
alteration if initialled by the Mortgagor) and relate to such Mortgage Loan,
(iii) based on its examination, or the examination of the Custodian on its
behalf, and only as to the foregoing documents, the information set forth on the
related Mortgage Loan Schedule accurately reflects the information set forth in
the Trustee's Mortgage File and (iv) each Mortgage Note has been endorsed as
provided in Section 2.04 above. The Trustee or Custodian shall be under no duty
or obligation to inspect, review or examine any such documents, instruments,
certificates or other papers to determine that they are genuine, enforceable, or
appropriate for the represented purpose or that they are other than what they
purport to be on their face. Within 375 days after the Closing Date, the Trustee
shall deliver (or cause to be delivered by the Custodian, if any) to the
Servicer, the Depositor and the Certificate Insurer a final certification in the
form attached hereto as Exhibit G covering both the Initial Mortgage Loans and
all Subsequent Mortgage Loans evidencing the completeness of the Trustee's
Mortgage Files (other than items listed in Section 2.04(f) above). Following
delivery of the Final Certification, the Trustee shall (or cause the Custodian
to) provide to the Certificate Insurer, the Depositor and the Servicer no less
frequently than quarterly, and the Servicer shall provide to the Certificate
Insurer, no less frequently than quarterly, updated certifications indicating
the then current status of exceptions, until all such exceptions have been
eliminated.
(b) If the Certificate Insurer, the Trustee or the Custodian, if any, on
the Trustee's behalf during the process of reviewing the Trustee's Mortgage
Files finds any
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document constituting a part of a Trustee's Mortgage File which is not executed,
has not been received, is unrelated to the Mortgage Loan identified in the
related Mortgage Loan Schedule, or does not conform to the requirements of
Section 2.04 above or the description thereof as set forth in the related
Mortgage Loan Schedule, the Trustee, the Certificate Insurer or the Custodian
(pursuant to the Custodial Agreement), as applicable, shall promptly so notify
the Servicer, the Depositor, the Certificate Insurer, the Custodian and the
Trustee. In performing any such review, the Trustee may conclusively rely on the
Depositor as to the purported genuineness of any such document and any signature
thereon. It is understood that the scope of the Trustee's review of the Mortgage
Files is limited solely to confirming that the documents listed in Section 2.04
above (other than the items listed in Section 2.04(f) above) have been received
and further confirming that any and all documents delivered pursuant to such
Section 2.04 have been executed and relate to the Mortgage Loans identified in
the related Mortgage Loan Schedule. The Trustee shall have no responsibility for
determining whether any document is valid and binding, whether the text of any
assignment or endorsement is in proper or recordable form, whether any document
has been recorded in accordance with the requirements of any applicable
jurisdiction, or whether a blanket assignment is permitted in any applicable
jurisdiction. The Depositor agrees to use reasonable efforts to remedy a
material defect in a document constituting part of a Trustee's Mortgage File of
which it is so notified by the Trustee. If, however, within 60 days after the
Trustee's or Custodian's notice to it respecting such defect the Depositor has
not remedied the defect and the defect materially and adversely affects the
interest of the Certificateholders in the related Mortgage Loan or the interests
of the Certificate Insurer, the Depositor will on the Determination Date next
succeeding the end of such 60 day period (i) substitute in lieu of such Mortgage
Loan a Qualified Substitute Mortgage Loan in the manner and subject to the
conditions set forth in Section 3.03 or (ii) purchase such Mortgage Loan at a
purchase price equal to the Principal Balance of such Mortgage Loan as of the
date of purchase, plus all accrued and unpaid interest on such Mortgage Loan to
but not including the Due Date in the Due Period most recently ended prior to
such Determination Date computed at the Mortgage Rate plus the amount of any
unreimbursed Servicing Advances made by the Servicer with respect to such
Mortgage Loan, which purchase price shall be deposited in the Principal and
Interest Account (after deducting therefrom any amounts received in respect of
such repurchased Mortgage Loan and being held in the related Principal and
Interest Account for future distribution to the extent such amounts represent
recoveries of principal not yet applied to reduce the related Principal Balance
or interest (net of the Servicing Fee) for the period from and after the Due
Date in the Due Period most recently ended prior to such Determination Date).
For purposes of calculating the Available Remittance Amount for any Remittance
Date, amounts paid by the Depositor pursuant to this Section 2.05 in connection
with the repurchase or substitution of any Mortgage Loan that are on deposit in
the related Principal and Interest Account as of the Determination Date for such
Remittance Date shall be deemed to have been paid during the related Due Period
and shall be transferred to the Certificate Account pursuant to Section 5.04(i)
on the Determination Date for such Remittance Date.
(c) Upon receipt by the Trustee of a certification of a Servicing Officer
of the Servicer of such substitution or purchase and the deposit of the amounts
described above in the related Principal and Interest Account (which
certification shall be in the form of Exhibit I), the
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Trustee shall release (or cause to be released) to the Servicer for release to
the Depositor the related Trustee's Mortgage File and shall execute, without
recourse, representation or warranty, and deliver such instruments of transfer
presented to it by the Servicer as shall be necessary to transfer such Mortgage
Loan to the Depositor.
On the Remittance Date in January of each year, the Trustee or the
Custodian, if any, shall deliver to the Depositor, the Servicer and the
Certificate Insurer a certification detailing all releases with respect to the
Mortgage Loans for which the Trustee or the Custodian holds a Trustee's Mortgage
File pursuant to this Agreement. Such certification shall be limited to a list
of all Trustee's Mortgage Files which were released by or returned to the
Trustee or the Custodian during the prior calendar year, the date of such
release or return, the reason for such release or return, and the Person to whom
the Trustee's Mortgage File was released and the Person who returned the
Trustee's Mortgage File.
Section 2.06 [Reserved].
Section 2.07 Execution of Certificates.
The Trustee acknowledges the assignment to it of the Mortgage Loans and the
delivery of the Trustee's Mortgage Files to it and, concurrently with such
delivery, has executed and caused to be authenticated and delivered to or upon
the order of the Depositor, in exchange for the Mortgage Loans, the Trustee's
Mortgage Files and the other assets included in the definition of the Trust
Fund, Certificates in Authorized Denominations evidencing the entire ownership
of the Trust Fund.
Section 2.08 Fees and Expenses of the Trustee.
Subject to Section 12.05 hereof, the fees and expenses of the Trustee
hereunder including (i) the annual fees of the Trustee, payable annually in
advance beginning on the Closing Date and on each anniversary thereof, (ii) any
other fees, expenses, disbursements and advances to which the Trustee is
entitled, and (iii) reimbursements to the Servicer for any advances made by the
Servicer to the Trustee Expense Account pursuant to Section 6.03, shall be paid
from the Trustee Expense Account in the manner set forth in Section 6.03;
provided, however, that the Depositor shall be liable for any expenses of the
Trust Fund incurred prior to the Closing Date. The fees due to the Trustee on
the Closing Date pursuant to Section 2.08(i) above shall be paid by the
Depositor on the Closing Date from its own funds.
Section 2.09 Application of Principal and Interest.
In the event that Net Liquidation Proceeds or Insurance Proceeds on a
Liquidated Mortgage Loan are less than the related Principal Balance plus
accrued interest thereon, or any Mortgagor makes a partial payment of any
Monthly Payment due on a Mortgage Loan, such Net Liquidation Proceeds, Insurance
Proceeds or partial payment shall be applied to payment of the
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related Mortgage Note as provided therein, and if not so provided or if the
related Mortgaged Property has become an REO Property, first to interest accrued
at the related Mortgage Rate and then to principal.
Section 2.10 Conveyance of the Subsequent Mortgage Loans.
(a) Subject to the conditions set forth in paragraph (b) below in
consideration of the Trustee's delivery on the related Subsequent Transfer Dates
to or upon the order of the Depositor of all or a portion of the balance of
funds in the related Pre-Funding Account with respect to the related Sub-Pool,
the Depositor shall on any Subsequent Transfer Date sell, transfer, assign, set
over and convey without recourse to the Trustee but subject to the subordination
described above in Section 2.01(b) above and the other terms and provisions of
this Agreement all of the right, title and interest of the Depositor in and to
(i) the Subsequent Mortgage Loans identified on the related Mortgage Loan
Schedule attached to the related Subsequent Transfer Instrument, delivered by
the Depositor on such Subsequent Transfer Date, excepting the Depositor's Yield,
(ii) principal received and interest accruing on the Subsequent Mortgage Loans
after the related Subsequent Cut-off Date and (iii) all items with respect to
such Subsequent Mortgage Loans to be delivered pursuant to Section 2.04 above
and the other items in the related Mortgage Files; provided, however, that the
Depositor reserves and retains all right, title and interest in and to principal
(including Prepayments, Curtailments and Excess Payments) received and interest
accruing on the Subsequent Mortgage Loans on or prior to the related Subsequent
Cut-off Date. The transfer to the Trustee by the Depositor of the Subsequent
Mortgage Loans identified on the related Mortgage Loan Schedule shall be
absolute and is intended by the Depositor, the Servicer, the Trustee and the
Certificateholders to constitute and to be treated as a sale of the Subsequent
Mortgage Loans by the Depositor to the Trust Fund.
The purchase price paid by the Trustee from amounts released from the Pre-
Funding Account shall be one-hundred percent (100%) of the aggregate principal
balances of the Subsequent Mortgage Loans so transferred. This Agreement shall
constitute a fixed-price purchase contract in accordance with Section
860G(a)(3)(A)(ii) of the Code.
(b) The Depositor shall transfer to the Trustee the Subsequent Mortgage
Loans and the other property and rights related thereto described in Section
2.10 (a) above, and the Trustee shall release funds from the related Pre-Funding
Account, only upon the satisfaction of each of the following conditions on or
prior to the related Subsequent Transfer Date:
(i) except with respect to the first conveyance of Subsequent Mortgage
Loans to the Trustee, the Depositor shall have provided the Trustee and the
Certificate Insurer with a timely Addition Notice and shall have provided
any information reasonably requested by the Trustee or the Certificate
Insurer with respect to the Subsequent Mortgage Loans;
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(ii) the Depositor shall have delivered to the Trustee a duly executed
Subsequent Transfer Instrument, which shall include a Mortgage Loan
Schedule, listing the Subsequent Mortgage Loans;
(iii) as of each Subsequent Transfer Date, the Depositor shall not be
insolvent nor shall it have been made insolvent by such transfer nor shall
it be aware of any pending insolvency;
(iv) such sale and transfer shall not result in a material adverse tax
consequence to the Trust Fund or the Certificateholders;
(v) the Funding Period shall not have terminated;
(vi) the Depositor shall have delivered to the Trustee an Officer's
Certificate, substantially in the form of Exhibit V, confirming the
satisfaction of each condition precedent and representations specified in
this Section 2.10(b), and Section 2.10(c) with respect to Sub-Pool 1, and
Section 2.10(d) with respect to Sub-Pool 2 below in the related Subsequent
Transfer Instrument;
(vii) the Depositor shall have delivered to the Trustee and the
Certificate Insurer Opinions of Counsel addressed to the Certificate
Insurer, Moody's, S&P and the Trustee with respect to the transfer of the
Subsequent Mortgage Loans substantially in the form of the Opinions of
Counsel delivered to the Certificate Insurer and the Trustee on the Closing
Date regarding certain bankruptcy and corporate matters; and
(viii) the Trustee shall have delivered to the Certificate Insurer and
the Depositor an Opinion of Counsel addressed to the Depositor, Moody's,
S&P and the Certificate Insurer with respect to the Subsequent Transfer
Instrument substantially in the form of the Opinion of Counsel delivered to
the Certificate Insurer and the Depositor on the Closing Date regarding
certain corporate matters relating to the Trustee.
(c) Any conveyance of Sub-Pool 1 Subsequent Mortgage Loans on a Sub-Pool 1
Subsequent Transfer Date is subject to the following representations and
warranties of the Depositor: (i) each Sub-Pool 1 Subsequent Mortgage Loan must
satisfy the representations and warranties specified in the Sub-Pool 1
Subsequent Transfer Instrument and this Agreement; (ii) the Depositor will not
select such Subsequent Mortgage Loans in a manner that it believes is adverse to
the interests of the Certificateholders; (iii) the Depositor will deliver
certain opinions of counsel with respect to the validity of the conveyance of
such Subsequent Mortgage Loans; (iv) as of the respective Subsequent Cut-off
Date, the Sub-Pool 1 Subsequent Mortgage Loans will satisfy the following
criteria: (A) such Subsequent Mortgage Loan may not be 30 or more days
contractually delinquent as of the related Subsequent Cut-off Date; (B) the
original term to maturity of such Subsequent Mortgage Loan will not be less than
120 months and will not exceed 360 months; (C) such Subsequent Mortgage Loan may
not provide for negative amortization; (D) such Subsequent Mortgage Loan will
have a Mortgage Rate not less than
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8.50%; (E) such Subsequent Mortgage Loan will be underwritten in accordance with
the criteria set forth under "The Depositor--Underwriting Criteria--Sub-Pool 1"
in the Prospectus; (F) such Subsequent Mortgage Loan will have been serviced by
the Servicer since origination or purchase by the Depositor; (G) such Subsequent
Mortgage Loan will not have a Combined Loan-to-Value Ratio greater than 90%; and
(H) such Subsequent Mortgage Loans will have (1) as of the end of the Sub-Pool 1
Funding Period, a weighted average number of months since origination of not
over 4 months and (2) not over 20% by aggregate principal balance with a first
payment date in July 1997. In addition, following the purchase of any Sub-Pool 1
Subsequent Mortgage Loan by the Trust Fund, the Sub-Pool 1 Mortgage Loans
(including the Sub-Pool 1 Subsequent Mortgage Loans) as of the end of the
Sub-Pool 1 Funding Period will: (i) have a weighted average Mortgage Rate of at
least 11.00%; (ii) have a weighted average remaining term to stated maturity of
not more than 277 months and not less than 172 months; (iii) have a weighted
average Combined Loan-to-Value Ratio of not more than 82%; (iv) have not in
excess of 55% by aggregate principal balance of Sub-Pool 1 Mortgage Loans that
are Balloon Mortgage Loans; (v) have no Sub-Pool 1 Mortgage Loan with a
principal balance in excess of $850,000; (vi) not have in excess of 15% by
aggregate principal balance of Sub-Pool 1 Mortgage Loans secured by non-owner
occupied Mortgaged Properties; (vii) not have a concentration of Mortgaged
Properties in a single zip code in excess of 4% by aggregate principal balance
of Sub-Pool 1 Mortgage Loans; (viii) not have in excess of 5% by aggregate
principal balance of Sub-Pool 1 Mortgage Loans secured by Mortgaged Properties
that are condominiums; (ix) have at least 71% by aggregate principal balance of
Sub-Pool 1 Mortgage Loans secured by fee simple interests in attached or
detached Single Family Properties (including units in de minimis PUDs) and (x)
not have in excess of 10% by aggregate principal balance of Sub-Pool 1 Mortgage
Loans secured by Multifamily Properties and Mixed Use Properties. The
Certificate Insurer may, in its reasonable discretion, reject for purchase by
the Trust Fund a proposed Sub-Pool 1 Subsequent Mortgage Loan which the
Certificate Insurer reasonably believes would adversely affect the interests of
the Certificateholders in the Mortgage Pool if included therein; provided that
the Certificate Insurer may, in its reasonable discretion, choose to accept such
proposed Sub-Pool 1 Mortgage Loan for purchase upon the Depositor depositing an
amount in the Reserve Account determined by the Certificate Insurer with respect
to such proposed Sub-Pool 1 Subsequent Mortgage Loan. In the sole discretion of
the Certificate Insurer, Sub-Pool 1 Subsequent Mortgage Loans with
characteristics varying from those set forth in this paragraph may be purchased
by the Trust Fund; provided, however, that the addition of such Mortgage Loans
will not materially affect the aggregate characteristics of Sub-Pool 1.
(d) Any conveyance of Sub-Pool 2 Subsequent Mortgage Loans on a Sub-Pool 2
Subsequent Transfer Date is subject to the following representations and
warranties of the Depositor: (i) each Subsequent Mortgage Loan must satisfy the
representations and warranties specified in the Sub-Pool 2 Subsequent Transfer
Instrument and this Agreement; (ii) the Depositor will not select such
Subsequent Mortgage Loans in a manner that it believes is adverse to the
interests of the Certificateholders; (iii) the Depositor will deliver certain
opinions of counsel with respect to the validity of the conveyance of such
Subsequent Mortgage Loans; (iv) as of the respective Subsequent Cut-off Date the
Sub-Pool 2 Subsequent Mortgage Loans will satisfy the following criteria: (A)
such Sub-Pool 2 Subsequent Mortgage Loan may not be 30
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or more days contractually delinquent as of the related Sub-Pool 2 Subsequent
Cut-off Date; (B) the original term to maturity of such Sub-Pool 2 Subsequent
Mortgage Loan will not be less than 180 months and will not exceed 360 months;
(C) such Subsequent Mortgage Loan may not provide for negative amortization; (D)
such Subsequent Mortgage Loan will have a Gross Margin not less than 3.00%; (E)
such Subsequent Mortgage Loan will be underwritten in accordance with the
criteria set forth under "The Depositor--Underwriting Criteria--Sub-Pool 2" in
the Prospectus; (F) such Subsequent Mortgage Loan will have been serviced by the
Servicer since origination or purchase by the Depositor; (G) such Subsequent
Mortgage Loan will not have a Loan-to-Value Ratio greater than 90%; and (H) such
Subsequent Mortgage Loans will have (1) as of the end of the Sub-Pool 2 Funding
Period, a weighted average number of months since origination of not over 4
months and (2) not over 20% by aggregate principal balance with a first payment
date in July 1997. In addition, following the purchase of any Sub-Pool 2
Subsequent Mortgage Loan by the Trust Fund, the Sub-Pool 2 Mortgage Loans
(including the Sub-Pool 2 Subsequent Mortgage Loans) as of the end of the
Sub-Pool 2 Funding Period will: (i) have a weighted average Gross Margin of at
least 5.60% and a weighted average coupon of at least 9.70%; (ii) have a
weighted average remaining term to stated maturity of not more than 359 months
and not less than 357 months; (iii) have a weighted average Loan-to-Value Ratio
of not more than 82%; (iv) have no Sub-Pool 2 Mortgage Loan with a principal
balance in excess of $850,000; (v) not have in excess of 10% by aggregate
principal balance of Sub-Pool 2 Mortgage Loans secured by non-owner occupied
Mortgaged Properties; (vi) not have a concentration of Mortgaged Properties in a
single zip code in excess of 5% by aggregate principal balance of Sub-Pool 2
Mortgage Loans; (vii) not have in excess of 5% by aggregate principal balance of
Sub-Pool 2 Mortgage Loans secured by Mortgaged Properties that are condominiums;
(viii) have at least 76% by aggregate principal balance of Sub-Pool 2 Mortgage
Loans secured by fee simple interests in attached or detached Single Family
Properties (including units in de minimis PUDs) and (ix) will not be secured by
Multifamily Properties or Mixed Use Properties. The Certificate Insurer may, in
its reasonable discretion, reject for purchase by the Trust Fund a proposed
Sub-Pool 2 Subsequent Mortgage Loan which the Certificate Insurer reasonably
believes would adversely affect the interests of the Certificateholders in the
Mortgage Pool if included therein; provided that the Certificate Insurer may, in
its reasonable discretion, choose to accept such proposed Sub-Pool 2 Mortgage
Loan for purchase upon the Depositor depositing an amount in the Reserve Account
determined by the Certificate Insurer with respect to such proposed Sub-Pool 2
Subsequent Mortgage Loan. In the sole discretion of the Certificate Insurer,
Sub-Pool 2 Subsequent Mortgage Loans with characteristics varying from those set
forth in this paragraph may be purchased by the Trust Fund; provided, however,
that the addition of such Sub-Pool 2 Mortgage Loans will not materially affect
the aggregate characteristics of Sub-Pool 2.
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ARTICLE III
REPRESENTATIONS AND WARRANTIES
Section 3.01 Representations of the Depositor.
The Depositor hereby represents and warrants to the Trustee, the
Certificate Insurer and the Certificateholders as of the Closing Date:
(a) The Depositor is a federally chartered stock savings bank, duly
organized, validly existing and in good standing under the laws of the United
States and has all licenses necessary to carry on its business as now being
conducted and is licensed, qualified and in good standing in each Mortgaged
Property State if the laws of such state require licensing or qualification in
order to conduct business of the type conducted by the Depositor and perform its
obligations as Depositor hereunder; the Depositor has the power and authority to
execute and deliver this Agreement and to perform in accordance herewith; the
execution, delivery and performance of this Agreement (including all instruments
of transfer to be delivered pursuant to this Agreement) by the Depositor and the
consummation of the transactions contemplated hereby have been duly and validly
authorized by all necessary action; this Agreement evidences the valid, binding
and enforceable obligation of the Depositor; and all requisite action has been
taken by the Depositor to make this Agreement valid, binding and enforceable
upon the Depositor in accordance with its terms, subject to the effect of
bankruptcy, insolvency, reorganization, moratorium and other, similar laws
relating to or affecting creditors' rights generally or the application of
equitable principles in any proceeding, whether at law or in equity;
(b) All actions, approvals, consents, waivers, exemptions, variances,
franchises, orders, permits, authorizations, rights and licenses required to be
taken, given or obtained, as the case may be, by or from any federal, state or
other governmental authority or agency (other than any such actions, approvals,
etc. under any state securities laws, real estate syndication or "Blue Sky"
statutes, as to which the Depositor makes no such representation or warranty),
that are necessary in connection with the purchase and sale of the Certificates
and the execution and delivery by the Depositor of the documents to which it is
a party, have been duly taken, given or obtained, as the case may be, are in
full force and effect, are not subject to any pending proceedings or appeals
(administrative, judicial or otherwise) and either the time within which any
appeal therefrom may be taken or review thereof may be obtained has expired or
no review thereof may be obtained or appeal therefrom taken, and are adequate to
authorize the consummation of the transactions contemplated by this Agreement
and the other documents on the part of the Depositor and the performance by the
Depositor of its obligations as Depositor or Servicer under this Agreement and
such of the other documents to which it is a party;
(c) The consummation of the transactions contemplated by this Agreement
will not result in the breach of any terms or provisions of the charter or
by-laws of the Depositor or result in the breach of any term or provision of, or
conflict with or constitute a default under
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or result in the acceleration of any obligation under, any material agreement,
indenture or loan or credit agreement or other material instrument to which the
Depositor or its property is subject, or result in the violation of any law,
rule, regulation, order, judgment or decree to which the Depositor or its
property is subject;
(d) Neither this Agreement nor the Prospectus nor any statement, report or
other document prepared by the Depositor and furnished or to be furnished
pursuant to this Agreement or in connection with the transactions contemplated
hereby contains any untrue statement of material fact or omits to state a
material fact necessary to make the statements contained herein or therein not
misleading;
(e) There is no action, suit, proceeding or investigation pending or, to
the best of the Depositor's knowledge, threatened against the Depositor which,
either in any one instance or in the aggregate, may result in any material
adverse change in the business, operations, financial condition, properties or
assets of the Depositor or in any material impairment of the right or ability of
the Depositor to carry on its business substantially as now conducted, or in any
material liability on the part of the Depositor or which would draw into
question the validity of this Agreement or the Mortgage Loans or of any action
taken or to be taken in connection with the obligations of the Depositor
contemplated herein, or which would be likely to impair materially the ability
of the Depositor to perform under the terms of this Agreement;
(f) The Depositor is not in default with respect to any order or decree of
any court or any order, regulation or demand of any federal, state, municipal or
governmental agency, which default might have consequences that would materially
and adversely affect the condition (financial or other) or operations of the
Depositor or its properties or might have consequences that would materially and
adversely affect its performance hereunder;
(g) Upon the receipt of each Trustee's Mortgage File by the Trustee under
this Agreement, the Trustee will have good title on behalf of the Trust Fund to
each Mortgage Loan (other than the Depositor's Yield and amounts received on or
after the Cut-off Date in the case of Initial Mortgage Loans or on or after a
Subsequent Cut-off Date in the case of Subsequent Mortgage Loans in respect of
interest accrued on the Mortgage Loans prior to the Cut-off Date or prior to the
Subsequent Cut-off Date, as the case may be) and such other items comprising the
corpus of the Trust Fund free and clear of any lien (other than liens which will
be simultaneously released);
(h) The transfer, assignment and conveyance of the Mortgage Notes and the
Mortgages by the Depositor pursuant to this Agreement are not subject to the
bulk transfer laws or any similar statutory provisions in effect in any
applicable jurisdiction;
(i) The origination and collection practices used by the Depositor with
respect to each Mortgage Note and Mortgage have been in all material respects
legal, proper, prudent and customary in the first and second mortgage
origination and servicing business with respect
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to Sub-Pool 1, and legal, proper, prudent and customary in the first mortgage
origination and servicing business with respect to Sub-Pool 2; and
(j) Considering the size of each Pre-Funding Account and the frequency of
prepayments, defaults, "fall-out" due to the borrower choosing another lender or
exercising its right of rescission, defective documentation and other
circumstances that would disqualify a mortgage loan from being purchased as a
Subsequent Mortgage Loan hereunder, the mortgage loans listed on each Proposed
Subsequent Mortgage Loan Schedule do not represent an unreasonably large pool of
mortgage loans from which to obtain the majority of the related Subsequent
Mortgage Loans.
Section 3.02 Individual Mortgage Loans.
(a) With respect to the Mortgage Loans, the Depositor hereby represents and
warrants to the Trustee, the Certificate Insurer and the Certificateholders,
with respect to each Initial Mortgage Loan, as of the Closing Date, and with
respect to each Subsequent Mortgage Loan, as of the related Subsequent Transfer
Date the following, subject to Section 2.10(c) and 2.10(d) above and modified to
the extent stated therein in the case of Subsequent Mortgage Loans:
(i) The information with respect to each Mortgage Loan set forth in
the related Mortgage Loan Schedule is true and correct;
(ii) All of the original or certified documentation required to be
delivered by the Depositor to the Trustee or to the Custodian on the
Closing Date or a Subsequent Transfer Date or as otherwise provided in
Section 2.04 above has or will be so delivered as provided;
(iii) Each Mortgaged Property is improved by a Single Family Property,
Multifamily Property or Mixed Use Property, which, to the best of the
Depositor's knowledge, does not include cooperatives or mobile homes and
does not constitute other than real property under state law. To the best
of the Depositor's knowledge, no Mortgaged Property is a manufactured
housing unit, as defined in the FNMA/FHLMC Seller-Servicer's Guide;
(iv) Each Mortgage Loan is being serviced by the Servicer or one or
more Subservicers;
(v) Except with respect to liens released immediately prior to the
transfer herein contemplated, immediately prior to the transfer and
assignment herein contemplated, the Depositor held good and indefeasible
title to, and was the sole owner of, each Mortgage Loan subject to no
liens, charges, mortgages, encumbrances or rights of others; and
immediately upon the transfer and assignment herein contemplated, the
Trustee will hold good and indefeasible title to, and be the sole owner of,
each Mortgage Loan subject to no liens, charges, mortgages, encumbrances or
rights of others;
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(vi) There is no delinquent tax or assessment lien on any Mortgaged
Property, and each Mortgaged Property is free of material damage and is in
average repair;
(vii) The Mortgage Loan is not subject to any right of rescission,
set-off, counterclaim or defense, including the defense of usury, nor will
the operation of any of the terms of the Mortgage Note or the Mortgage, or
the exercise of any right thereunder, render either the Mortgage Note or
the Mortgage unenforceable in whole or in part, or subject to any right of
rescission, set-off, counterclaim or defense, including the defense of
usury, and no such right of rescission, set-off, counterclaim or defense
has been asserted with respect thereto;
(viii) There is no mechanics' lien or claim for work, labor or
material affecting any Mortgaged Property which is or may be a lien prior
to, or equal with, the lien of such Mortgage except those which are insured
against by the title insurance policy referred to in Section 3.02(a)(x)
below;
(ix) Each Mortgage Loan at the time it was made complied in all
material respects with applicable state and federal laws and regulations,
including, without limitation, usury, equal credit opportunity and
disclosure laws;
(x) With respect to each Mortgage Loan, a written commitment for a
lender's title insurance policy, issued in standard American Land Title
Association or California Land Title Association form, or other form
acceptable in a particular jurisdiction, by a title insurance company
authorized to transact business in the state in which the related Mortgaged
Property is situated, together with a condominium endorsement, if
applicable, in an amount at least equal to the original Principal Balance
of such Mortgage Loan insuring the mortgagee's interest under the related
Mortgage Loan as the holder of a valid first or second mortgage lien of
record with respect to Sub-Pool 1, or a valid first mortgage lien of record
with respect to Sub-Pool 2, on the real property described in the Mortgage,
subject only to exceptions of the character referred to in Section
3.02(a)(v) above, was effective on the date of the origination of such
Mortgage Loan, and, as of the Closing Date, such commitment will be valid
and thereafter the policy issued pursuant to such commitment shall continue
in full force and effect. With respect to each Mortgage Loan, the mortgagee
is the sole named insured of such mortgage title insurance policy, and such
mortgage title insurance policy is in full force and effect and will be in
full force and effect and inure to the benefit of the Trustee upon the
consummation of the transactions contemplated by this Agreement. No claims
have been made under such mortgage title insurance policy and no prior
holder of the related Mortgage, including the mortgagee, has done, by act
or omission, anything that would impair the coverage of such mortgage title
insurance policy;
(xi) The improvements upon each Mortgaged Property are covered by a
valid and existing hazard insurance policy with a generally acceptable
carrier that provides for fire and extended coverage representing coverage
described in Sections 5.07 and 5.08;
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(xii) A flood insurance policy is in effect with respect to each
Mortgaged Property with a generally acceptable carrier in an amount
representing coverage described in Sections 5.07 or 5.08, if and to the
extent required by such Section 5.07 or 5.08;
(xiii) Each Mortgage and Mortgage Note is the legal, valid and binding
obligation of the maker thereof and is enforceable in accordance with its
terms, except only as such enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors' rights generally and by general principles of
equity (whether considered in a proceeding or action in equity or at law),
and all parties to each Mortgage Loan had full legal capacity to execute
all Mortgage Loan documents and convey the estate therein purported to be
conveyed;
(xiv) The Depositor has caused or will cause to be performed any and
all acts required to be performed to preserve the rights and remedies of
the Trustee in any insurance policies applicable to the Mortgage Loans
including, without limitation, any necessary notifications of insurers,
assignments of policies or interests therein, and establishments of
co-insured, joint loss payee and mortgagee rights in favor of the Trustee;
(xv) The terms of the Mortgage Note and the Mortgage have not been
impaired, altered or modified in any material respect, except by a written
instrument which has been recorded or is in the process of being recorded,
if necessary, to protect the interest of the Certificateholders and which
has been or will be delivered to the Trustee or the Custodian. The
substance of any such alteration or modification is reflected on the
related Mortgage Loan Schedule. Each original Mortgage was recorded, and
all subsequent assignments of the original Mortgage have been recorded in
the appropriate jurisdictions wherein such recordation is necessary to
perfect the lien thereof as against creditors of the Depositor (or, subject
to Section 2.04 above, are in the process of being recorded, or are, in the
Opinion of Counsel to the Depositor, not required to be recorded);
(xvi) No instrument of release or waiver has been executed in
connection with the Mortgage Loan, and no Mortgagor has been released, in
whole or in part;
(xvii) There are no defaults in complying with the terms of the
Mortgage, and all taxes, governmental assessments, insurance premiums,
water, sewer and municipal charges, leasehold payments or ground rents
which previously became due and owing have been paid, or an escrow of funds
has been established in an amount sufficient to pay for every such item
which remains unpaid and which has been assessed but is not yet due and
payable. Except for payments in the nature of escrow payments, including
without limitation, taxes and insurance payments, the Servicer has not
advanced funds, or induced, solicited or knowingly received any advance of
funds by a party other than the Mortgagor, directly or indirectly, for the
payment of any amount required by the Mortgage, except for interest
accruing from the date of the Mortgage Note or date of disbursement of the
Mortgage proceeds, whichever is greater, to the day which precedes by one
month the Due Date of the first installment of principal and interest;
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(xviii) There is no proceeding pending or threatened for the total or
partial condemnation of the Mortgaged Property, nor is such a proceeding
currently occurring, and such property is undamaged by waste, fire,
earthquake or earth movement, windstorm, flood, tornado or other casualty,
so as to affect adversely the value of the Mortgaged Property as security
for the Mortgage Loan or the use for which the premises were intended;
(xix) To the best of the Depositor's knowledge, all of the
improvements which were included for the purpose of determining the
appraised value of the Mortgaged Property lie wholly within the boundaries
and building restriction lines of such property, and no improvements on
adjoining properties encroach upon the Mortgaged Property;
(xx) To the best of the Depositor's knowledge, no improvement located
on or being part of the Mortgaged Property is in violation of any
applicable zoning law or regulation. To the best of the Depositor's
knowledge, all inspections, licenses and certificates required to be made
or issued with respect to all occupied portions of the Mortgaged Property
and, with respect to the use and occupancy of the same, including but not
limited to certificates of occupancy and fire underwriting certificates,
have been made or obtained from the appropriate authorities and the
Mortgaged Property is lawfully occupied under applicable law;
(xxi) The proceeds of the Mortgage Loan have been fully disbursed, and
there is no obligation on the part of the mortgagee to make future advances
thereunder. Any and all requirements as to completion of any on-site or
off-site improvements and as to disbursements of any escrow funds therefor
have been complied with. All costs, fees and expenses incurred in making or
closing or recording the Mortgage Loans were paid;
(xxii) Except with respect to certain of the Sub-Pool 1 Multifamily
Loans and Sub-Pool 1 Mixed Use Loans, the related Mortgage Note is not and
has not been secured by any collateral, pledged account or other security
except the lien of the corresponding Mortgage and, in the case of such
Sub-Pool 1 Multifamily Loans and Sub-Pool 1 Mixed Use Loans, the related
Assignment of Leases and UCC financing statements, if any.
(xxiii) No Mortgage Loan was originated under a buydown plan;
(xxiv) There is no obligation on the part of the Depositor or any
other party to make payments in addition to those made by the Mortgagor;
(xxv) With respect to each Mortgage constituting a deed of trust, a
trustee, duly qualified under applicable law to serve as such, has been
properly designated and currently so serves and is named in such Mortgage,
and no fees or expenses are or will become payable by the
Certificateholders to the trustee under the deed of trust, except in
connection with a trustee's sale after default by the Mortgagor;
(xxvi) No Mortgage Loan has a shared appreciation feature, or other
contingent interest feature. No Mortgage Loan provides for deferred
interest or negative
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amortization. No Sub-Pool 2 Mortgage Loan requires or permits the Mortgagor to
convert the Mortgage Rate to a fixed rate;
(xxvii) All parties which have had any interest in the Mortgage Loan,
whether as mortgagee, assignee, pledgee or otherwise, are (or, during the
period in which they held and disposed of such interest, were) (1) in
compliance with any and all applicable licensing requirements of the laws
of the state wherein the Mortgaged Property is located, and (2)(A)
organized under the laws of such state, or (B) qualified to do business in
such state, or (C) federal savings and loan associations or national banks
having principal offices in such state, or (D) not doing business in such
state so as to require qualification or licensing;
(xxviii) The Mortgage contains a customary provision for the
acceleration of the payment of the unpaid principal balance of the Mortgage
Loan in the event the related Mortgaged Property is sold without the prior
consent of the mortgagee thereunder;
(xix) Any future advances made prior to (and excluding) the Cut-off
Date have been consolidated with the outstanding principal amount secured
by the Mortgage, and the secured principal amount, as consolidated, bears a
single interest rate and single repayment term reflected on the related
Mortgage Loan Schedule. The consolidated principal amount does not exceed
the original principal amount of the Mortgage Loan. The Mortgage Note does
not permit or obligate the Servicer to make future advances to the
Mortgagor at the option of the Mortgagor;
(xxx) The related Mortgage contains customary and enforceable
provisions which render the rights and remedies of the holder thereof
adequate for the realization against the Mortgaged Property of the benefits
of the security, including, (a) in the case of a Mortgage designated as a
deed of trust, by trustee's sale, and (b) otherwise by judicial
foreclosure. There is no homestead or other exemption available to the
Mortgagor which would materially interfere with the right to sell the
Mortgaged Property at a trustee's sale or the right to foreclose the
Mortgage except as set forth in the Prospectus;
(xxxi) There is no default, breach, violation or event of acceleration
existing under the Mortgage or the related Mortgage Note and no event
which, with the passage of time or with notice and the expiration of any
grace or cure period, would constitute a default, breach, violation or
event of acceleration; and neither the Servicer nor the Depositor has
waived any default, breach, violation or event of acceleration;
(xxxii) All parties to the Mortgage Note and the Mortgage had legal
capacity to execute the Mortgage Note and the Mortgage and each Mortgage
Note and Mortgage have been duly and properly executed by such parties;
(xxxiii) All amounts received after the Cut-off Date with respect to
the Mortgage Loans (other than the Depositor's Yield and amounts in respect
of interest accrued on
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the Mortgage Loans on or prior to the Cut-off Date) have been deposited into the
Principal and Interest Account and are, as of the Closing Date, in the Principal
and Interest Account;
(xxxiv) Each Mortgage Loan conforms, and all such Mortgage Loans in
the aggregate conform, to the description thereof set forth in the
Prospectus;
(xxxv) The Mortgage Loans were not selected by the Depositor for
inclusion in the Trust Fund on any basis intended to adversely affect the
Trust Fund;
(xxxvi) A full appraisal was performed in connection with each
Mortgaged Property;
(xxxvii) As of the Cut-off Date, the Depositor does not know or have
reason to know of any circumstances that would cause any Mortgagor to
default under its Mortgage Loan or the related Mortgage Note;
(xxxviii) As of the Cut-Off Date, with respect to any Mortgaged
Property, the Depositor has no actual knowledge that there exist any
hazardous substances, hazardous wastes or solid wastes, as such terms are
defined in CERCLA, or other federal, state or local environmental
legislation; and
(xxxix) With respect to each Mortgaged Property subject to a land
trust (a "Land Trust Mortgage") (i) a trustee, duly qualified under
applicable law to serve as such, has been properly designated and currently
so serves and is named as such in the land trust agreement and such trustee
is named in the Land Trust Mortgage as Mortgagor; (ii) all fees and
expenses of the land trustee which have previously become due on owing have
been paid and no fees or expenses are or will become payable by the
Certificateholders or the Trust to the land trustee under the land trust
agreement; (iii) the beneficiary is solely obligated to pay any fees and
expenses of the land trustee and the priority of the lien of the Land Trust
Mortgage is not and will not be primed by the land trustee; (iv) if the
Mortgaged Property is Owner-Occupied, the Mortgaged Property is occupied by
the beneficiary under the land trust agreement and, if such land trust
agreement terminates, the beneficiary will become the owner of the
Mortgaged Property; (v) the beneficiary is obligated to make payments under
the Note and will have personal liability for deficiency judgments to the
extent permitted by law; (vi) the Land Trust Mortgages were made in
compliance with their respective land trust agreements, were validly
entered into by their respective land trust trustee and did not, do not
currently, and will not in the future, violate any provision of their
respective land trust agreement, nor any agreement between or amongst the
beneficiaries of any one land trust; (vii) the Land Trust Mortgages are the
first (or in the case of Sub-Pool 1, first or second) liens on the
Mortgaged Properties; no liens are in place against the beneficial
interests, or any part thereof of any Land Trust Mortgage or collateral
assignment of beneficial interest, which liens are superior to the interest
held by the Seller; and the beneficial interest, or any part thereof, of
any Land Trust Mortgage or collateral assignment of beneficial interest has
not been pledged as security for any other debt; and the land trust trustee
is forbidden, pursuant to a written agreement between the land trust
trustee and
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the Mortgagee, from using the land trust property, or any part, as security
for any other debt until the expiration date of its respective Note; and
(viii) the terms and conditions of the land trust agreement do not prevent
the free and absolute marketability of the Mortgaged Property. As of the
Cut-off Date, the Principal Balance of Land Trust Mortgage Loans with
related Mortgaged Properties subject to land trusts does not exceed 20% of
the Original Pool Principal Balance.
(xxxx) As of the Cut-off Date, no more than 5% of the Original Pool
Principal Balance are Mortgage Properties located in Maryland subject to
ground leases.
(b) With respect to the Sub-Pool 1 Mortgage Loans, the Depositor hereby
represents and warrants to the Trustee, the Certificate Insurer and the
Certificateholders, with respect to each Sub-Pool 1 Initial Mortgage Loan, as of
the Closing Date, and with respect to each Sub-Pool 1 Subsequent Mortgage Loan,
as of the related Subsequent Transfer Date the following, subject to Section
2.10(c) above and modified to the extent stated therein in the case of Sub-Pool
1 Subsequent Mortgage Loans; provided, however, that in the case of the
Subsequent Mortgage Loans, reference to the "Original Sub-Pool 1 Principal
Balance" shall mean the Original Sub-Pool 1 Principal Balance plus the aggregate
principal balance of the Sub- Pool 1 Subsequent Mortgage Loans as of the end of
the Funding Period:
(i) The Mortgage Note related to each Mortgage Loan bears a fixed
Mortgage Rate;
(ii) Mortgage Loans constituting approximately 41.18% of the Original
Sub-Pool 1 Principal Balance are balloon loans which will provide for a
final Monthly Payment substantially greater than the preceding Monthly
Payments. All of such balloon loans provide for Monthly Payments based on
either a 25-year or 30-year amortization schedule with a final balloon
payment at the end of the 15th year. Each other Mortgage Note will provide
for a schedule of substantially equal Monthly Payments which are, if timely
paid, sufficient to fully amortize the principal balance of such Mortgage
Note on or before its maturity date;
(iii) Each Mortgage is a valid and subsisting first or second lien of
record on the Mortgaged Property subject, in the case of any second
Mortgage Loan, only to a First Lien on such Mortgaged Property and subject
in all cases to the exceptions to title set forth in the title insurance
policy, with respect to the related Mortgage Loan, which exceptions are
generally acceptable to second mortgage lending companies, and such other
exceptions to which similar properties are commonly subject and which do
not individually, or in the aggregate, materially and adversely affect the
benefits of the security intended to be provided by such Mortgage;
(iv) No more than 0.77% of the Original Sub-Pool 1 Principal Balance
is secured by Mortgaged Properties located within any single zip code area;
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(v) At least 92.68% of the Original Sub-Pool 1 Principal Balance is
secured by Mortgage Properties that are maintained by the Mortgagors as
primary residences, and at least 93.73% of the Original Sub-Pool 1
Principal Balance is secured by Owner Occupied Mortgaged Property;
(vi) With respect to each Mortgage Loan secured by a second priority
lien, the related First Lien requires equal monthly payments, or if it
bears an adjustable interest rate, the monthly payments for the related
First Lien may be adjusted no more frequently than monthly; with respect to
substantially all of the Mortgage Loans secured by a second priority lien,
at the time of the origination of the Mortgage Loan the related First Lien
was at least 12 months old and at least 11 Monthly Payments had been made
by the Mortgagor;
(vii) Either (a) no consent for the Mortgage Loan is required by the
holder of the related First Lien or (b) such consent has been obtained and
is contained in the Mortgage File;
(viii) With respect to any First Lien that provides for negative
amortization or deferred interest, the balance of such First Lien used to
calculate the CLTV for the Mortgage Loan is based on the maximum amount of
negative amortization or deferred interest possible under such First Lien;
(ix) The maturity date of each Mortgage Loan secured by a second
priority lien is prior to the maturity date of the related First Lien if
such First Lien provides for a balloon payment, except if the CLTV does not
exceed 55%;
(x) Approximately 68.86% of the Original Sub-Pool 1 Principal Balance
was originated and underwritten by the Depositor and the remainder of the
Mortgage Loans were purchased and re-underwritten by the Depositor in
accordance with the underwriting criteria set forth in the Prospectus;
(xi) The Mortgage Rate is not less than 8.500% and not more than
16.000%;
(xii) As of the Cut-off Date, no payment on any Mortgage Loan is 30
days or more delinquent (two or more payments missed). Two Sub-Pool 1
Mortgage Loans secured by Single Family Properties and one Sub-Pool 1
Mortgage Loan secured by a Multifamily Property have been contractually
delinquent for thirty days (two payments missed) on one occasion prior to
the Cut-off Date; and
(xiii) Approximately 86.72% of the Original Sub-Pool 1 Principal
Balance is secured by attached or detached one-family dwelling units;
approximately 0.56% of the Original Sub-Pool 1 Principal Balance is secured
by units in condominiums. No more than approximately 9.60% of the Original
Sub-Pool 1 Principal Balance is secured by dwelling units in two- to
four-family dwelling units; approximately 15.64% of the Original Sub-Pool 1
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Principal Balance will be secured by investor properties. Approximately
1.59% of the Original Sub-Pool 1 Principal Balance is secured by
Multifamily Properties, and no more than approximately 1.53% of the
Original Sub-Pool 1 Principal Balance is secured by Mixed Use Properties.
(c) With respect to the Sub-Pool 2 Mortgage Loans, the Depositor hereby
represents and warrants to the Trustee, the Certificate Insurer and the
Certificateholders, with respect to each Sub-Pool 2 Initial Mortgage Loan, as of
the Closing Date, and with respect to each Sub-Pool 2 Subsequent Mortgage Loan,
as of the related Subsequent Transfer Date the following, subject to Section
2.10(d) above and modified to the extent stated therein in the case of Sub-Pool
2 Subsequent Mortgage Loans; provided, however, that in the case of the
Subsequent Mortgage Loans, reference to the "Original Sub-Pool 2 Principal
Balance" shall mean the Original Sub-Pool 2 Principal Balance plus the aggregate
principal balance of the Sub- Pool 2 Subsequent Mortgage Loans as of the end of
the Funding Period:
(i) None of the Mortgage Loans are balloon loans. Approximately 4.24%
of the Original Sub-Pool 2 Principal Balance is subject to a One Year
Treasury Index, and approximately 95.76% of the Original Sub-Pool 2
Principal Balance is subject to a Six- Month LIBOR Index. With respect to
each Mortgage Loan on each Adjustment Date, the Mortgage Rate will be
adjusted to equal the related Index plus the Gross Margin, rounded to the
nearest 0.125%, subject to the related Periodic Rate Cap, the Maximum
Mortgage Rate and the Minimum Mortgage Rate. Under each Mortgage Note,
interest is payable in arrears. The Mortgage Loans have a Mortgage Rate
subject to annual or semiannual adjustment after an initial six-month or
twenty-four month period. Each Mortgage Loan has an original term to
maturity from the date on which the first Monthly Payment is due of 360
months;
(ii) Each Mortgage is a valid and subsisting first lien of record on
the Mortgaged Property subject in all cases to the exceptions to title set
forth in the title insurance policy, and such other exceptions to which
similar properties are commonly subject and which do not individually, or
in the aggregate, materially and adversely affect the benefits of the
security intended to be provided by such Mortgage;
(iii) No more than 2.78% of the Original Sub-Pool 2 Principal Balance
is secured by Mortgaged Properties located within any single zip code area;
(iv) 95.82% of the Original Sub-Pool 2 Principal Balance is secured by
Mortgaged Properties that are maintained by the Mortgagors as primary
residences, and at least 96.51% of the Original Sub-Pool 2 Principal
Balance is secured by Owner Occupied Mortgaged Property;
(v) Approximately 89.18% of the Original Sub-Pool 2 Principal Balance
is secured by attached or detached one-family dwelling units; approximately
0.33% of the Original Sub-Pool 2 Principal Balance is secured by units in
condominiums. No more than approximately 10.49% of the Original Sub-Pool 2
Principal Balance is secured by dwelling units
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two- to four-family dwelling units; approximately 12.62% of the Original
Sub-Pool 2 Principal Balance will be secured by investor properties. None
of the Sub-Pool 2 Mortgage Loans are secured by Multifamily Properties or
Mixed Use Properties.
(vi) With respect to each Mortgage Loan, no loan junior in lien
priority to such Mortgage Loan and secured by the related Mortgaged
Property was originated by the Depositor at the time of origination of such
Mortgage Loan;
(vii) The Gross Margins on the Mortgage Loans range from 3.250% to
9.250% and the weighted average Gross Margin as of the Cut-off Date is
approximately 6.103%;
(viii) Approximately 61.60% of the Original Sub-Pool 2 Principal
Balance were originated and underwritten by the Depositor and the remainder
of the Mortgage Loans were purchased and re-underwritten by the Depositor
in accordance with the underwriting criteria set forth in the Prospectus;
(ix) The Mortgage Rates borne by the Mortgage Loans as of the Cut-off
Date range from 7.875% per annum to 13.625% per annum and the weighted
average Mortgage Rate as of the Cut-off Date is 10.275% per annum;
(x) Each Mortgage Loan that was originated on or after February 28,
1996 has an initial or next Adjustment Date no later than March 1, 1999;
(xi) Each Mortgage Loan bears interest based on a 360-day year
consisting of twelve 30-day months; and
(xii) As of the Cut-off Date, no payment on any Mortgage Loan is 30
days or more delinquent (two or more payments missed). One Mortgage Loan
has been contractually delinquent (two payments missed) on one occasion
prior to the Cut-off Date.
Section 3.03 Purchase and Substitution.
It is understood and agreed that the representations and warranties set
forth in Sections 3.01 and 3.02 above with respect to the related Sub-Pool shall
survive the transfer and assignment of the Mortgage Loans to the Trustee and
delivery of the Certificates to the Certificateholders. Upon discovery by the
Depositor, the Servicer, any Subservicer, the Custodian, the Trustee, the
Certificate Insurer or any Certificateholder of a breach of any of such
representations and warranties which materially and adversely affects the value
of Mortgage Loans or the interest of the Certificateholders, or which materially
and adversely affects the interests of the Certificate Insurer or the
Certificateholders in the related Mortgage Loan in the case of a representation
and warranty relating to a particular Mortgage Loan (notwithstanding that such
representation and warranty was made to the Depositor's best knowledge), the
party discovering such breach shall give prompt written notice to the others.
The Depositor shall
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either (a) within 60 days of the earlier of its discovery or its receipt of
notice of any breach of a representation or warranty, promptly cure such breach
in all material respects, or (b) on the Determination Date next succeeding the
end of the 60 day period described in clause (a), either (1) purchase such
Mortgage Loan, in the manner and at the price specified in Section 2.05(b) above
or (2) remove such Mortgage Loan from the Trust Fund (in which case it shall
become a Deleted Mortgage Loan) and substitute one or more Qualified Substitute
Mortgage Loans, provided such substitution is effected not later than the date
which is two years after the Startup Day or at such later date, if the Depositor
delivers to the Trustee and the Certificate Insurer an Opinion of Counsel that
such substitution would not constitute a prohibited transaction under the REMIC
Provisions or cause the Trust Fund REMIC to fail to qualify as a REMIC at any
time any Certificates are outstanding. Any such substitution shall be
accompanied by payment by the Depositor of the Substitution Adjustment, if any,
to be deposited in the related Principal and Interest Account. For purposes of
calculating the Available Remittance Amount for any Remittance Date, amounts
paid by the Depositor pursuant to this Section 3.03 in connection with the
repurchase or substitution of any Mortgage Loan that are on deposit in the
related Principal and Interest Account as of the Determination Date for such
Remittance Date shall be deemed to have been paid during the related Due Period
and shall be transferred to the Certificate Account pursuant to Section 5.04(i)
on the Determination Date for such Remittance Date.
As to any Deleted Mortgage Loan for which the Depositor substitutes a
Qualified Substitute Mortgage Loan or Loans, the Servicer shall effect such
substitution by delivering to the Trustee a certification in the form attached
hereto as Exhibit I, executed by a Servicing Officer, and the documents
constituting the Trustee's Mortgage File for such Qualified Substitute Mortgage
Loan or Loans.
The Servicer shall deposit in the related Principal and Interest Account
all payments received in connection with such Qualified Substitute Mortgage Loan
or Loans after the date of such substitution. Monthly Payments received with
respect to Qualified Substitute Mortgage Loans on or before the date of
substitution will be retained by the Depositor. The Trust Fund will own all
payments received on the Deleted Mortgage Loan on or before the date of
substitution, and the Depositor shall thereafter be entitled to retain all
amounts subsequently received in respect of such Deleted Mortgage Loan. The
Servicer shall give written notice to the Trustee and the Certificate Insurer
that such substitution has taken place and shall amend the related Mortgage Loan
Schedule to reflect the removal of such Deleted Mortgage Loan from the terms of
this Agreement and the substitution of the Qualified Substitute Mortgage Loan.
The Servicer shall promptly deliver to the Trustee a copy of the related amended
Mortgage Loan Schedule. Upon such substitution, such Qualified Substitute
Mortgage Loan or Loans shall be subject to the terms of this Agreement in all
respects, and the Depositor shall be deemed to have made with respect to such
Qualified Substitute Mortgage Loan or Loans, as of the date of substitution, the
covenants, representations and warranties set forth in Sections 3.01 and 3.02
above. On the date of such substitution, the Depositor will remit to the
Servicer, and the Servicer will deposit into the related Principal and Interest
Account, an amount equal to the Substitution Adjustment, if any.
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It is understood and agreed that the obligations of the Depositor set forth
in Sections 2.05 and 3.03 above to cure, purchase or substitute for a defective
Mortgage Loan as provided in such Sections 2.05 and 3.03 constitute the sole
remedies of the Trustee, the Certificate Insurer and the Certificateholders
respecting a breach of the representations and warranties.
Any cause of action against the Depositor relating to or arising out of a
defect in a Trustee's Mortgage File as contemplated by Section 2.05 above or the
breach of any representations and warranties made in Sections 3.01 or 3.02 above
shall accrue as to any Mortgage Loan upon (i) discovery of such defect or breach
by any party and notice thereof to the Depositor or notice thereof by the
Depositor to the Trustee, (ii) failure by the Depositor to cure such defect or
breach or purchase or substitute such Mortgage Loan as specified above, and
(iii) demand upon the Depositor by the Trustee for all amounts payable in
respect of such Mortgage Loan.
Notwithstanding any contrary provision of this Agreement, with respect to
any Mortgage Loan which is not in default or as to which no default is
reasonably foreseeable, no purchase or substitution pursuant to Section 2.05(b)
above or this Section 3.03 shall be made unless the Depositor provides to the
Trustee an Opinion of Counsel, addressed to the Trustee, to the effect that such
purchase or substitution would not (i) result in the imposition of taxes on
"prohibited transactions" of the Trust Fund REMIC, as defined in Section 860F of
the Code, or a tax on contributions to the Trust Fund REMIC, under the REMIC
Provisions, or (ii) cause the Trust Fund REMIC to fail to qualify as a REMIC at
any time that any Certificates are outstanding. Any Mortgage Loan as to which
purchase or substitution was delayed pursuant to this paragraph shall be
purchased or substituted (subject to compliance with such Sections 2.05 and
3.03) upon the earlier of (a) the occurrence of a default or imminent default
with respect to such loan and (b) receipt by the Trustee of an Opinion of
Counsel to the effect that such purchase or substitution will not result in any
of the events described in clauses (i) and (ii) of the preceding sentence. The
Trustee shall give prompt written notice to Moody's, S&P and the Certificate
Insurer of any repurchase or substitution made pursuant to this Section 3.03.
The Trustee shall have no duty to conduct any affirmative investigation
other than as specifically set forth in this Agreement as to the occurrence of
any condition requiring the repurchase or substitution of any Mortgage Loan
pursuant to this Section or the eligibility of any Mortgage Loan for purposes of
this Agreement, and may rely conclusively on any Opinion of Counsel delivered to
it under this Section 3.03.
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ARTICLE IV
THE CERTIFICATES
Section 4.01 The Certificates.
The Certificates shall be substantially in the form annexed hereto as
Exhibits B-1 and B-2, and shall, upon original issue, be executed (not in its
individual capacity, but solely as Trustee) and delivered by the Trustee to the
Certificate Registrar for authentication and delivery to or upon the order of
the Depositor, concurrently with the transfer and assignment to the Trustee of
the Mortgage Loans pursuant to Section 2.01 above. All Certificates shall be
issued in Authorized Denominations. So long as the Class A Certificates are
Book-Entry Certificates, each Class A Certificate shall be evidenced by one or
more certificates representing the entire amount of the Original Class A
Principal Balance. All Certificates shall be executed and authenticated by
manual or facsimile signature on behalf of the Trust Fund by an authorized
officer of the Trustee and on behalf of the Certificate Registrar by an
authorized officer of the Certificate Registrar. Certificates bearing the
signatures of individuals who were at the time of the execution of the
Certificates the proper officers of the Trustee shall bind the Trust Fund,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the delivery of such Certificates or did not hold such offices
at the date of such Certificates. All Certificates issued hereunder shall be
dated the date of their authentication.
Section 4.02Registration of Transfer and Exchange of Certificates.
(a) The Trustee shall cause to be kept at its office in Chicago, Illinois,
or at its designated agent, a Certificate Register in which, subject to such
reasonable regulations as it may prescribe, it shall provide for the
registration of Certificates and of transfers and exchanges of Certificates as
herein provided. The Certificate Register shall contain the name, remittance
instructions, Class and Percentage Interest of each Certificateholder, as well
as the Series and the number in the Series. The Trustee hereby accepts
appointment as Certificate Registrar for the purpose of registering Certificates
and transfers and exchanges of Certificates as herein provided (the "Certificate
Registrar").
(b) The Class R Certificates have not been registered or qualified under
the Securities Act of 1933, as amended (the "1933 Act"), or any state securities
laws or "Blue Sky" laws. No transfer, sale, pledge or other disposition of any
Class R Certificate shall be made unless such disposition is made pursuant to an
effective registration statement under the 1933 Act and effective registration
or qualification under applicable state securities laws or "Blue Sky" laws, or
is made in a transaction which does not require such registration or
qualification. In the event that a transfer of a Class R Certificate is to be
made in reliance upon an exemption from the 1933 Act, the Trustee or the
Certificate Registrar shall require, in order to assure compliance with the 1933
Act, that the Certificateholder desiring to effect such disposition and such
Certificateholder's prospective transferee each certify to the Trustee or the
Certificate Registrar in writing the facts surrounding such disposition
substantially in the form of Exhibit
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D. In the event that such certification of facts does not on its face establish
the availability of an exemption under the 1933 Act, the Trustee may require an
Opinion of Counsel satisfactory to it that such transfer may be made pursuant to
an exemption from the 1933 Act, which Opinion of Counsel shall not be an expense
of the Trustee or the Trust Fund. None of the Servicer, the Depositor nor the
Trustee are obligated under this Agreement to register the Class R Certificates
under the 1933 Act or any other securities law or to take any action not
otherwise required under this Agreement to permit the transfer of such
Certificates without such registration or qualification.
(c) Each Person who has or who acquires any Percentage Interest in a Class
R Certificate shall be deemed by the acceptance or acquisition of such
Percentage Interest to have agreed to be bound by the following provisions and
to have irrevocably appointed the Servicer or its designee as its
attorney-in-fact to negotiate the terms of any mandatory sale under clause (v)
below and to execute all instruments of transfer and to do all other things
necessary in connection with any such sale, and the rights of each Person
acquiring any Percentage Interest in a Class R Certificate are expressly subject
to the following provisions:
(i) Each Person holding or acquiring any Percentage Interest in a
Class R Certificate shall be a Permitted Transferee and shall promptly
notify the Servicer and the Trustee of any change or impending change in
its status as a Permitted Transferee.
(ii) No Percentage Interest in a Class R Certificate may be
transferred (including any transfer to the initial holder) and the Trustee
shall not register the transfer of the Class R Certificate unless the
Trustee shall have been furnished with (A) an affidavit (a "Transfer
Affidavit") of the proposed transferee substantially in the form attached
hereto as Exhibit J and (B) a certificate (a "Transfer Certificate") of the
transferror substantially in the form attached hereto as Exhibit J-1 to the
effect that (1) such transferror has no actual knowledge that the proposed
transferee is not a Permitted Transferee and (2) no purpose of such
proposed transfer is to impede the assessment or collection of tax.
(iii) Each Person holding or acquiring any Percentage Interest in a
Class R Certificate shall agree (A) to require a Transfer Affidavit from
any other Person to whom such Person attempts to transfer its Percentage
Interest in a Class R Certificate, (B) to require a Transfer Affidavit from
any Person for whom such Person is acting as nominee, trustee or agent in
connection with any transfer of a Class R Certificate, (C) to deliver a
Transfer Certificate to the Trustee in connection with any such attempted
transfer and (D) not to transfer its Percentage Interest in a Class R
Certificate or to cause the transfer of a Percentage Interest in a Class R
Certificate to any other Person if it has actual knowledge that such Person
is not a Permitted Transferee or if any purpose of such transfer is to
impede the assessment or collection of tax.
(iv) Each Person holding or acquiring a Percentage Interest in a Class
R Certificate, by purchasing a Percentage Interest in such Certificate,
agrees to give the
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Trustee and the Depositor written notice that it is a "pass-through
interest holder" within the meaning of Temporary Treasury Regulations
Section 1.67-3T(a)(2)(i)(A) immediately upon acquiring a Percentage
Interest in a Class R Certificate, if it is, or is holding a Percentage
Interest in a Class R Certificate on behalf of, a "pass-through interest
holder."
(v) Any attempted or purported transfer of any Percentage Interest in
a Class R Certificate in violation of the provisions of this Section 4.02
shall be absolutely null and void and shall vest no rights in the purported
transferee. If any purported transferee shall become a Holder of a Class R
Certificate in violation of the provisions of this Section 4.02, then the
last preceding Permitted Transferee shall be restored to all rights as
Holder thereof retroactive to the date of registration of transfer of such
Class R Certificate. The Trustee shall notify the Servicer upon receipt of
written notice or discovery by a Responsible Officer that the registration
of transfer of a Class R Certificate was not in fact permitted by this
Section 4.02. Knowledge shall not be imputed to the Trustee with respect to
an impermissible transfer in the absence of such a written notice or
discovery by a Responsible Officer. The Trustee shall be under no liability
to any Person for any registration of transfer of a Class R Certificate
that is in fact not permitted by this Section 4.02 or for making any
payments due on such Certificate to the Holder thereof or taking any other
action with respect to such Holder under the provisions of this Agreement
so long as the transfer was registered after receipt of the related
Transfer Affidavit and Transfer Certificate. The Trustee shall be entitled,
but not obligated to, recover from any Holder of a Class R Certificate that
was in fact not a Permitted Transferee at the time it became a Holder or,
at such subsequent time as it became other than a Permitted Transferee, all
payments made on such Class R Certificate at and after either such time.
Any such payments so recovered by the Trustee shall be paid and delivered
by the Trustee to the last preceding Holder of such Certificate.
(vi) If any purported transferee shall become a Holder of a Class R
Certificate in violation of the restrictions in this Section 4.02, then the
Servicer or its designee shall have the right, without notice to the Holder
or any prior Holder of such Class R Certificate, to sell such Class R
Certificate to a purchaser selected by the Servicer or its designee on such
reasonable terms as the Servicer or its designee may choose. Such purchaser
may be the Servicer itself or any Affiliate of the Servicer. The proceeds
of such sale, net of commissions, expenses and taxes due, if any, will be
remitted by the Servicer to the last preceding purported transferee of such
Class R Certificate, except that in the event that the Servicer determines
that the Holder or any prior Holder of such Class R Certificate may be
liable for any amount due under this Section 4.02 or any other provision of
this Agreement, the Servicer may withhold a corresponding amount from such
remittance as security for such claim. The terms and conditions of any sale
under this clause (vi) shall be determined in the sole discretion of the
Servicer or its designee, and it shall not be liable to any Person having a
Percentage Interest in a Class R Certificate as a result of its exercise of
such discretion.
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(vii) The Servicer, on behalf of the Trustee, shall make available,
upon written request from the Trustee, all information necessary to compute
any tax imposed (A) as a result of the Transfer of a Percentage Interest in
a Class R Certificate to any Person who is a Disqualified Organization,
including the information regarding "excess inclusions" of such Class R
Certificates required to be provided to the Internal Revenue Service and
certain Persons as described in Treasury Regulations Sections
1.860D-1(b)(5) and 1.860E-2(a)(5), and (B) as a result of any regulated
investment company, real estate investment trust, common trust fund,
partnership, trust, estate or organization described in Section 1381 of the
Code that holds a Percentage Interest in a Class R Certificate having as
among its record holders at any time any Person who is a Disqualified
Organization. Reasonable compensation for providing such information may be
required by the Servicer from such Person.
Transfers of the Class R Certificates to Persons other than Permitted
Transferees are prohibited.
No transfer of a Class R Certificate or any interest therein shall be made
to any employee benefit plan or other retirement arrangement, including
individual retirement accounts and annuities, Keogh plans and collective
investment funds and separate accounts in which such plans, accounts or
arrangements are invested, that is subject to the Employment Retirement Income
Security Act of 1974, as amended ("ERISA"), or the Code (each, a "Plan"), unless
the prospective transferee of a Class R Certificate provides the Servicer and
the Trustee with a certification of facts and, at its own expense, an Opinion of
Counsel which establish to the satisfaction of the Servicer and the Trustee that
such transfer will not result in a violation of Section 406 of ERISA or Section
4975 of the Code or cause the Servicer or the Trustee to be deemed a fiduciary
of such Plan or result in the imposition of an excise tax under Section 4975 of
the Code.
None of (i) the Trust Fund, (ii) the Servicer, (iii) the Depositor or (iv)
any Subservicer shall be a Class A Certificateholder. Any attempted or purported
transfer in violation of the preceding sentence shall be absolutely null and
void and shall vest no rights in the purported transferee. If any purported
transferee shall become a Holder of a Class A Certificate in violation of such
sentence, then the last preceding Holder shall be restored to all rights as
Holder thereof retroactive to the date of registration of transfer of such
Certificate. The Trustee shall notify the Servicer of any transfer in violation
of this paragraph upon receipt of written notice thereof. The Trustee shall be
under no liability to any Person for any registration of transfer of a Class A
Certificate not permitted by this paragraph or for making any payments due on
such Certificate to the Holder thereof or taking any other action with respect
to such Holder under the provisions of this Agreement so long as the transfer
was registered without such receipt. The Trustee shall be entitled, but not
obligated, to recover from any Holder of a Class A Certificate that was in fact
not a permitted Holder under this paragraph, all payments made on such
Certificate at and after such time. Any such payments so recovered by the
Trustee shall be paid and delivered by the Trustee to the last preceding Holder
of such Certificate.
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Subject to the preceding paragraphs, upon surrender for registration of
transfer of any Certificate at the Chicago, Illinois office of the Trustee (or
at the office of the designated Certificate Registrar), the Trustee shall
execute, authenticate and deliver in the name of the designated transferee or
transferees, a new Certificate of the same Class and Percentage Interest and
dated the date of authentication by the Trustee. The Certificate Registrar shall
notify the Servicer of any such transfer.
At the option of the Certificateholders, Certificates may be exchanged for
other Certificates of Authorized Denominations of a like Class and aggregate
Percentage Interest, upon surrender of the Certificates to be exchanged at such
office. Whenever any Certificates are so surrendered for exchange, the Trustee
shall execute, authenticate and deliver the Certificates which the
Certificateholder making the exchange is entitled to receive. Every Certificate
presented or surrendered for registration of transfer or exchange shall be
accompanied by a written instrument of transfer substantially in the form
attached hereto as Exhibit E, or such other endorsement or written instrument of
transfer as is satisfactory to the Trustee, duly executed by the Holder thereof
or his attorney duly authorized in writing, together with wiring instructions,
if applicable, in the form attached hereto as Exhibit E(1).
No service charge shall be made for any registration of transfer or
exchange of Certificates, but the Certificate Registrar may require payment of a
sum sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of Certificates.
All Certificates surrendered for registration of transfer and exchange
shall be marked "cancelled" by the Trustee.
(d) Except as provided in paragraph (e) below, the Book-Entry Certificates
shall at all times remain registered in the name of the Depository or its
nominee and at all times: (i) registration of the Class A Certificates may not
be transferred by the Trustee except to another Depository; (ii) the Depository
shall maintain book-entry records with respect to the Certificate Owners and
with respect to ownership and transfers of such Class A Certificates; (iii)
ownership and transfers of the Class A Certificates on the books of the
Depository shall be governed by applicable rules established by the Depository;
(iv) the Depository may collect its usual and customary fees, charges and
expenses from its Depository Participants; (v) the Trustee shall deal only with
the Depository for purposes of exercising the rights of Holders of Class A
Certificates under this Agreement.
All transfers by Certificate Owners of Book-Entry Certificates shall be
made in accordance with the procedures established by the Depository Participant
or brokerage firm representing such Certificate Owner. Each Depository
Participant shall only transfer Book-Entry Certificates of Certificate Owners it
represents or of brokerage firms for which it acts as agent in accordance with
the Depository's normal procedures.
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(e) If (x)(i) the Servicer advises the Trustee in writing that the
Depository is no longer willing or able to properly discharge its
responsibilities as Depository, and (ii) the Servicer is unable to locate a
qualified successor, (y) the Servicer at its option may advise the Trustee in
writing that it elects to terminate the book-entry system through the Depository
or (z) after the occurrence of an Event of Default, the aggregate of the
Majority Certificateholders may advise the Trustee in writing that the
continuation of a book-entry system through the Depository, to the exclusion of
Definitive Certificates, is no longer in the best interests of the Certificate
Owners, the Trustee shall notify all of the Certificate Owners, through the
Depository, of the occurrence of any such event and of the availability of
definitive, fully registered Class A Certificates (the "Definitive
Certificates"), as the case may be, to the Certificate Owners requesting the
same. Upon surrender to the Trustee of the Class A Certificates by the
Depository, accompanied by registration instructions from the Depository for
registration of transfer, the Trustee shall issue the Definitive Certificates.
Neither the Servicer nor the Trustee shall be liable for any delay in delivery
of such instructions and may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Certificates all
references herein to obligations imposed upon or to be performed by the
Depository shall be deemed to be imposed upon and performed by the Trustee to
the extent applicable with respect to such Definitive Certificates and the
Trustee shall recognize the Holders of the Definitive Certificates as
Certificateholders hereunder.
Section 4.03 Mutilated, Destroyed, Lost or Stolen Certificates.
If (i) any mutilated Certificate is surrendered to the Certificate
Registrar, or the Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Certificate, and (ii) there is delivered to
the Trustee and the Certificate Registrar such security or indemnity as may
reasonably be required by each of them to save each of them harmless, then, in
the absence of notice to the Servicer, the Trustee and the Certificate Registrar
that such Certificate has been acquired by a bona fide purchaser, upon receipt
of written notice from the Servicer that it has received adequate security or
indemnity and no notice that such Certificate has been acquired by a bona fide
purchaser, the Trustee shall execute, deliver and authenticate, in exchange for
or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like tenor, Class and Percentage Interest, but bearing a number
not contemporaneously outstanding. Upon the issuance of any new Certificate
under this Section 4.03, the Servicer and the Trustee may require the payment of
a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses connected therewith. Any
duplicate Certificate issued pursuant to this Section 4.03 shall constitute
complete and indefeasible evidence of ownership in the Trust Fund, as if
originally issued, whether or not the mutilated, destroyed, lost or stolen
Certificate shall be found at any time.
Section 4.04 Persons Deemed Owners.
Prior to due presentation of a Certificate for registration of transfer,
the Servicer, the Depositor, the Trustee and the Certificate Registrar may treat
the Person in whose name any Certificate is registered as the owner of such
Certificate for the purpose of receiving remittances
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pursuant to Section 6.06 and for all other purposes whatsoever, and the
Depositor, the Servicer, the Trustee and the Certificate Registrar shall not be
affected by notice to the contrary.
Section 4.05 Information Reports to be Filed by the Servicer.
The Servicer or the Subservicers shall file the information reports with
respect to the receipt of mortgage interest received in a trade or business,
foreclosures and abandonments of any Mortgaged Property and the information
returns relating to cancellation of indebtedness income with respect to any
Mortgaged Property required by Sections 6050H, 6050J and 6050P of the Code,
respectively, and deliver to the Trustee an Officers' Certificate stating that
such reports and returns have been filed. Such reports and returns shall be in
form and substance sufficient to meet the reporting requirements imposed by such
Sections 6050H, 6050J and 6050P of the Code.
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ARTICLE V
ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS
Section 5.01 Duties of the Servicer.
(a) The Servicer, as independent contract servicer, shall service and
administer the Mortgage Loans and shall have full power and authority, acting
alone, to do any and all things in connection with such servicing and
administration which the Servicer may deem necessary or desirable and consistent
with the terms of this Agreement. The Servicer may enter into Subservicing
Agreements for any servicing and administration of Mortgage Loans with any
institution which is in compliance with the laws of each state necessary to
enable it to perform its obligations under such Subservicing Agreement and (x)
has been designated an approved seller-servicer by FHLMC or FNMA for first and
second mortgage loans with respect to Sub- Pool 1, and for first mortgage loans
with respect to Sub-Pool 2 or (y) is an Affiliate of the Servicer. The Servicer
shall give written notice to the Certificate Insurer and the Trustee of the
appointment of any Subservicer. Any such Subservicing Agreement shall be
consistent with and not violate the provisions of this Agreement. The Servicer
shall be entitled to terminate any Subservicing Agreement in accordance with the
terms and conditions of such Subservicing Agreement and to either itself
directly service the related Mortgage Loans or enter into a Subservicing
Agreement with a successor subservicer which qualifies hereunder.
(b) Notwithstanding any Subservicing Agreement, any of the provisions of
this Agreement relating to agreements or arrangements between the Servicer and
Subservicer or reference to actions taken through a Subservicer or otherwise,
the Servicer shall remain obligated and primarily liable to the Trustee and
Certificateholders for the servicing and administering of the Mortgage Loans in
accordance with the provisions of this Agreement without diminution of such
obligation or liability by virtue of such Subservicing Agreements or
arrangements or by virtue of indemnification from the Subservicer and to the
same extent and under the same terms and conditions as if the Servicer alone
were servicing and administering the Mortgage Loans. For purposes of this
Agreement, the Servicer shall be deemed to have received payments on Mortgage
Loans when the Subservicer has received such payments. The Servicer shall be
entitled to enter into any agreement with a Subservicer for indemnification of
the Servicer by such Subservicer, and nothing contained in this Agreement shall
be deemed to limit or modify such indemnification.
With respect to any Mortgage Note released by the Trustee to the Servicer
or to any Subservicer in accordance with the terms of this Agreement, other than
a release or satisfaction pursuant to Section 7.02, prior to such release, the
Trustee or, if a Custodian has been appointed pursuant to Section 12.12, the
Custodian shall (a) complete all endorsements in blank so that the endorsement
reads "Pay to the order of LaSalle National Bank, as Trustee under the Pooling
and Servicing Agreement, dated as of March 1, 1997, Series 1997-1" and (b)
complete a restrictive endorsement that reads "LaSalle National Bank is the
holder of the mortgage note for the benefit of the Certificateholders under the
Pooling and Servicing
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Agreement, dated as of March 1, 1997, Series 1997-1" with respect to those
Mortgage Notes currently endorsed "Pay to the order of holder", if any.
(c) Any Subservicing Agreement that may be entered into and any
transactions or services relating to the Mortgage Loans involving a Subservicer
in its capacity as such and not as an originator shall be deemed to be between
the Subservicer and the Servicer alone, and the Trustee, the Certificate Insurer
and Certificateholders shall not be deemed parties thereto and shall have no
claims, rights, obligations, duties or liabilities with respect to the
Subservicer except as set forth in Section 5.01(d).
(d) In the event the Servicer shall for any reason no longer be the
Servicer (including by reason of an Event of Default), the Trustee or its
designee shall, subject to Section 10.02, thereupon assume all of the rights and
obligations of the Servicer under each Subservicing Agreement that the Servicer
may have entered into, unless the Trustee elects to terminate any Subservicing
Agreement in accordance with its terms. The Trustee, its designee or the
successor servicer for the Trustee shall be deemed to have assumed all of the
Servicer's interest therein and to have replaced the Servicer as a party to each
Subservicing Agreement to the same extent as if the Subservicing Agreements had
been assigned to the assuming party, except that the Trustee (or its designee)
shall have no liability or obligations under any Subservicing Agreements with
respect to any period prior to becoming the new Servicer, whether for acts or
omissions of the Servicer or otherwise, and the Servicer shall not by virtue of
such replacement be relieved of any such liability or obligations under the
Subservicing Agreements. The Servicer at its expense and without right of
reimbursement therefor, shall, upon request of the Trustee, deliver to the
assuming party all documents and records relating to each Subservicing Agreement
and the Mortgage Loans then being serviced and an accounting of amounts
collected and held by it and otherwise use its best efforts to effect the
orderly and efficient transfer of the Subservicing Agreements to the assuming
party.
(e) Consistent with the terms of this Agreement, the Servicer may waive,
modify or vary any term of any Mortgage Loan or consent to the postponement of
strict compliance with any such term or in any manner grant indulgence to any
Mortgagor if in the Servicer's determination such waiver, modification,
postponement or indulgence is not materially adverse to the interests of the
Certificateholders and the Certificate Insurer, provided, however,
notwithstanding any provision of this Agreement to the contrary, the Servicer
shall not consent to, make or permit (i) any modification with respect to any
Mortgage Loan that would change the Mortgage Rate, reduce or increase the
principal balance (except for reductions resulting from actual payments of
principal) or change the final maturity date on such Mortgage Loan unless (A)
the related Mortgagor is in default with respect to the Mortgage Loan or, in the
judgment of the Servicer, such default is reasonably foreseeable and (B) in the
sole judgment of the Servicer such modification would increase the proceeds of
such Mortgage Loan and (C) the Certificate Insurer has consented to such
modification, or (ii) any modification, waiver or amendment of any term of any
Mortgage Loan that would both (A) effect an exchange or reissuance of such
Mortgage Loan under Section 1001 of the Code (or final or temporary Treasury
regulations, or proposed Treasury regulations with a proposed effective date
that would
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make them applicable to such modification, waiver or amendment, promulgated
thereunder) and (B) cause the Trust Fund REMIC to fail to qualify as a REMIC
under the Code or the imposition of any tax on "prohibited transactions" or
"contributions after the startup date" under the REMIC Provisions. No costs
incurred by the Servicer or any Subservicer in respect of Servicing Advances
shall for the purposes of distributions to Certificateholders be added to the
amount owing under the related Mortgage Loan. Without limiting the generality of
the foregoing, and subject to the consent of the Certificate Insurer, the
Servicer shall continue, and is hereby authorized and empowered to execute and
deliver on behalf of the Trustee and each Certificateholder, all instruments of
satisfaction or cancellation, or of partial or full release, discharge and all
other comparable instruments, with respect to the Mortgage Loans and with
respect to the Mortgaged Properties. If reasonably required by the Servicer, the
Trustee shall furnish the Servicer with any powers of attorney and other
documents necessary or appropriate to enable the Servicer to carry out its
servicing and administrative duties under this Agreement.
Notwithstanding anything to the contrary contained herein, the Servicer, in
servicing and administering the Mortgage Loans, shall employ or cause to be
employed procedures (including collection, foreclosure, REO Property management
procedures and the making of Servicing Advances) and exercise the same care that
it customarily employs and exercises in servicing and administering mortgage
loans for its own account, in accordance with accepted first and second mortgage
servicing practices of prudent lending institutions with respect to Sub-Pool 1,
and in accordance with accepted first mortgage servicing practices of prudent
lending institutions with respect to Sub-Pool 2, and giving due consideration to
the Certificate Insurer's and the Certificateholders reliance on the Servicer.
(f) On and after such time as the Trustee receives the resignation of, or
notice of the removal of, the Servicer from its rights and obligations
hereunder, and with respect to resignation pursuant to Section 9.04, after
receipt of the Opinion of Counsel required pursuant to such Section 9.04, the
Trustee or its designee shall assume all of the rights and obligations of the
Servicer hereunder, subject to Section 10.02. The Servicer shall, upon request
of the Trustee but at the expense of the Servicer, deliver to the Trustee all
documents and records relating to the Mortgage Loans and an accounting of
amounts collected and held by the Servicer and otherwise use its best efforts to
effect the orderly and efficient transfer of servicing rights and obligations to
the assuming party.
Section 5.02 Liquidation of Mortgage Loans.
In the event that any payment due under any Mortgage Loan and not postponed
pursuant to Section 5.01 above is not paid when the same becomes due and
payable, or in the event the Mortgagor fails to perform any other covenant or
obligation under the Mortgage Loan and such failure continues beyond any
applicable grace period, the Servicer shall take such action as it shall deem to
be in the best interest of the Certificate Insurer and the Certificateholders.
The Servicer shall foreclose upon or otherwise comparably effect the ownership
in the name of the Trustee for the benefit of the Certificateholders on behalf
of the Certificateholders of Mortgaged Properties relating to defaulted Mortgage
Loans as to which no
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satisfactory arrangements can be made for collection of delinquent payments in
accordance with the provisions of Section 5.10, provided, however, that the
Servicer shall not be obligated to foreclose in the event that the Servicer, in
its good faith reasonable judgment, determines that it would not be in the best
interests of Certificateholders or the Certificate Insurer, which judgment shall
be evidenced by an Officer's Certificate delivered to the Trustee and the
Certificate Insurer. In connection with such foreclosure or other conversion,
the Servicer shall exercise collection and foreclosure procedures with the same
degree of care and skill in its exercise or use as it would exercise or use
under the circumstances in the conduct of its own affairs. Any amounts advanced
in connection with such foreclosure or other action shall constitute Servicing
Advances.
After a Mortgage Loan has become a Liquidated Mortgage Loan, the Servicer
shall promptly prepare and forward to the Trustee and the Certificate Insurer
and, upon request, any Certificateholder, a Liquidation Report certified by a
Responsible Officer, in the form attached hereto as Exhibit M, detailing the
Liquidation Proceeds received from the Liquidated Mortgage Loan, expenses
incurred with respect thereto, and any loss incurred in connection therewith.
Section 5.03 Establishment of Principal and Interest Accounts; Deposits in
Principal and Interest Accounts.
With respect to each Sub-Pool, the Servicer shall cause to be established
and initially maintained with the Trustee one or more Principal and Interest
Accounts, which shall be Eligible Accounts, titled, with respect to Sub-Pool 1,
"Sub-Pool 1 Principal and Interest Account, Lee Servicing Company, a division of
Superior Bank FSB, in trust for the registered holders of AFC Mortgage Loan
Asset Backed Certificates, Series 1997-1" and with respect to Sub-Pool 2,
"Sub-Pool 2 Principal and Interest Account, Lee Servicing Company, a division of
Superior Bank FSB, in trust for the registered holders of AFC Mortgage Loan
Asset Backed Certificates, Series 1997-1." Subsequent to the Closing Date, the
Servicer may transfer the related Principal and Interest Account to another
institution, provided that each Principal and Interest Account shall be an
Eligible Account and all amounts therein shall be invested only in Permitted
Instruments. The creation of any Principal and Interest Account shall be
evidenced by a letter agreement in the form of Exhibit C. A copy of such letter
agreement shall be furnished on the Closing Date to the Trustee, the Certificate
Insurer and, upon request, any Certificateholder. With respect to each Sub-Pool,
the Servicer shall deposit (without duplication) the following amounts with
respect to such Sub-Pool within one (1) Business Day of receipt of good funds in
the related Principal and Interest Account and retain therein:
(i) all payments due after the Cut-off Date with respect to the
Initial Mortgage Loans or after a Subsequent Cut-off Date with respect to
the Subsequent Mortgage Loans on account of principal on the Mortgage Loans
and all Excess Payments, Principal Prepayments and Curtailments received
after the Cut-off Date, or after the Subsequent Cut-off Date, as the case
may be, and other than the Depositor's Yield;
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(ii) all payments due after the Cut-off Date with respect to the
Initial Mortgage Loans, or after a Subsequent Cut-off Date with respect to
the Subsequent Mortgage Loans, on account of interest on the Mortgage
Loans;
(iii) all Net Liquidation Proceeds;
(iv) all Insurance Proceeds;
(v) all Released Mortgaged Property Proceeds;
(vi) any amounts payable in connection with the repurchase of any
Mortgage Loan and the amount of any Substitution Adjustment pursuant to
Sections 2.05 and 3.03 above; and
(vii) any amount required to be deposited in the related Principal and
Interest Account pursuant to Section 5.04 or 11.01.
The foregoing requirements for deposit in the related Principal and
Interest Account shall be exclusive; it being understood and agreed that,
without limiting the generality of the foregoing, the Depositor's Yield, the
Servicing Fee with respect to each Mortgage Loan, late payment charges and
assumption fees, to the extent permitted by Sections 7.01 and 7.03, and Excess
Proceeds need not be deposited by the Servicer in the related Principal and
Interest Account. Any interest earnings on funds held in the related Principal
and Interest Account shall be for the account of the Servicer and may only be
withdrawn from the related Principal and Interest Account by the Servicer
immediately following its monthly remittance of the Available Remittance Amount
to the Trustee. Any reference herein to amounts on deposit in the related
Principal and Interest Account shall refer to amounts net of such investment
earnings.
Section 5.04 Permitted Withdrawals From the Principal and Interest Account.
With respect to each Sub-Pool, the Servicer shall withdraw or cause to be
withdrawn funds from the related Principal and Interest Account for the
following purposes:
(i) to effect the remittance to the Trustee on the Determination Date
of the Excess Spread and the portion of the Available Remittance Amount
that is net of Compensating Interest and Monthly Advances to the Trustee.
For the purposes of this Section 5.04(i), the calculation of the Available
Remittance Amount shall be made without reference to the actual deposit of
funds in the Certificate Account;
(ii) to reimburse itself for any accrued unpaid Servicing Fees,
unreimbursed Monthly Advances and unreimbursed Servicing Advances and any
amount described in Section 6.13(b) or Section 6.13(c) deposited in the
Certificate Account and attributable to the conveyance to the Trustee of a
Subsequent
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Mortgage Loan that does not have a payment date during the related Due
Period, if the Servicer is the Depositor. The Servicer's right to
reimbursement for accrued and unpaid Servicing Fees and unreimbursed
Servicing Advances shall be limited to late collections on the related
Mortgage Loan, including Liquidation Proceeds, Released Mortgaged Property
Proceeds, Insurance Proceeds and such other amounts as may be collected by
the Servicer from the related Mortgagor with respect to a Sub-Pool or
otherwise relating to the Mortgage Loan in respect of which such
unreimbursed amounts are owed (including amounts paid by the Depositor in
connection with the purchase or substitution of Mortgage Loans pursuant to
Section 2.05 or 3.03 above). The Servicer's right to reimbursement for
unreimbursed Monthly Advances and amounts described in Section 6.13(b) or
Section 6.13(c) (if the Servicer is the Depositor) shall be limited to
collections of interest on any Mortgage Loan; provided that the Servicer
shall not be entitled to reimbursement from Liquidation Proceeds for
Monthly Advances made pursuant to Section 6.09(c) or Section 6.09(d), or
for amounts deposited in the Certificate Account pursuant to Section
6.13(b) or Section 6.13(c) and attributable to the conveyance to the
Trustee of a Subsequent Mortgage Loan that does not have a payment date
during the related Due Period. It is understood that the Servicer's right
to reimbursement pursuant hereto shall be senior to the rights of
Certificateholders unless the Depositor or any of its affiliates is the
Servicer and the Depositor is required to repurchase or substitute a
Mortgage Loan pursuant to Section 2.05 or 3.03 above, in which case the
Servicer's right to such reimbursement shall be subordinate to the rights
of Certificateholders to receive the purchase price or substitution
adjustment pursuant to such Sections 2.05 and 3.03;
(iii) to withdraw any amount received from a Mortgagor that is
recoverable and sought to be recovered as a Preference Amount;
(iv) (a) to make investments in Permitted Instruments and (b) to pay
to itself interest earned in respect of Permitted Instruments or on funds
deposited in the related Principal and Interest Account;
(v) to withdraw any funds deposited in the related Principal and
Interest Account that were not required to be deposited therein (such as
Servicing Compensation) or were deposited therein in error;
(vi) to pay itself Servicing Compensation pursuant to Section 7.03 to
the extent not retained or paid pursuant to Section 5.03 or 5.04(ii);
(vii) to withdraw funds necessary for the conservation and disposition
of REO Property pursuant to the third paragraph of Section 5.10;
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(viii) to remit to the Trustee any amount which was deposited by the
Certificate Insurer pursuant to Section 11.01 to cover unpaid fees and
expenses of the Trustee; and
(ix) to clear and terminate the related Principal and Interest Account
upon the termination of this Agreement with any amounts on deposit therein
being paid to the Servicer and/or the Depositor to the extent of any
Reimbursable Amounts and the remainder to the Class R Certificateholders.
So long as no Event of Default shall have occurred and be continuing, and
consistent with any requirements of the Code, the funds held in the related
Principal and Interest Account may be invested by the Servicer (to the extent
practicable) in Permitted Instruments, as directed in writing to the Trustee by
the Servicer. In either case, funds in the related Principal and Interest
Account must be available for withdrawal without penalty, and any Permitted
Instruments must mature not later than the Business Day immediately preceding
the Determination Date next following the date of such investment (except that
if such Permitted Instrument is an obligation of the institution that maintains
the related Principal and Interest Account, then such Permitted Instrument shall
mature not later than such Determination Date) and shall not be sold or disposed
of prior to its maturity. All Permitted Instruments in which funds in the
related Principal and Interest Account are invested must be held by or
registered in the name of "Lee Servicing Company, a division of Superior Bank
FSB, in trust for the registered holders of AFC Mortgage Loan Asset Backed
Certificates, Series 1997-1." All interest or other earnings from funds on
deposit in the related Principal and Interest Account (or any Permitted
Instruments thereof) shall be the exclusive property of the Servicer, and may be
withdrawn from the related Principal and Interest Account pursuant to clause
(iv) above and the penultimate sentence of Section 5.03 above. The amount of any
losses incurred in connection with the investment of funds in the related
Principal and Interest Account in Permitted Instruments shall be deposited in
the related Principal and Interest Account by the Servicer from its own funds
immediately as realized without reimbursement therefor.
Section 5.05 Payment of Property Taxes, Insurance and Other Charges.
With respect to each Mortgage Loan, the Servicer shall maintain accurate
records reflecting fire and hazard insurance coverage.
With respect to each Mortgage Loan as to which the Servicer maintains
escrow accounts, the Servicer shall maintain accurate records reflecting the
status of ground rents, real estate taxes and assessments, water rates and other
charges which are or may become a lien upon the Mortgaged Property and the
status of primary mortgage guaranty insurance premiums, if any, and fire and
hazard insurance coverage and shall obtain, from time to time, all bills for the
payment of such charges (including renewal premiums) and shall effect payment
thereof prior to the applicable penalty or termination date and at a time
appropriate for securing maximum discounts allowable, employing for such purpose
deposits of the Mortgagor in any escrow account which shall have been estimated
and accumulated by the Servicer in amounts sufficient
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for such purposes, as allowed under the terms of the Mortgage. To the extent
that a Mortgage does not provide for escrow payments, the Servicer shall monitor
such payments to determine if they are made by the Mortgagor. Any out-of-pocket
expenses incurred by the Servicer pursuant to this Section 5.05, including
without limitation any advances of such payments, shall constitute Servicing
Advances.
Section 5.06 Transfer of Accounts; Monthly Statements.
Notwithstanding Section 5.03 above, the Principal and Interest Accounts and
each of the other Accounts shall be established, as of the Closing Date, with
the Trustee as Eligible Accounts pursuant to clause (B) of the definition
thereof. The Principal and Interest Accounts and each of the Accounts or any of
them may, upon written notice to the Trustee and the Certificate Insurer, be
transferred to a different depository institution so long as such transfer is to
an Eligible Account. The Certificate Insurer shall be provided with a monthly
statement of activity in the Principal and Interest Accounts and the Accounts
from each party holding such accounts.
Section 5.07 Maintenance of Hazard Insurance.
The Servicer shall cause to be maintained, subject to the provisions of
Section 5.08, fire and hazard insurance with extended coverage customary in the
area where the Mortgaged Property is located, in an amount which is at least
equal to the least of (a) the outstanding principal balance owing on the
Mortgage Loan, and the First Lien, with respect to Sub-Pool 1, (b) the full
insurable value of the premises securing the Mortgage Loan and (c) the minimum
amount required to compensate for damage or loss on a replacement cost basis. If
at the origination of the Mortgage Loan or at any time during the term of the
Mortgage Loan the Servicer determines that the Mortgaged Property is located in
an area identified on a Flood Hazard Boundary Map or Flood Insurance Rate Map
issued by the Flood Emergency Management Agency as having special flood hazards
and flood insurance has been made available, the Servicer will cause to be
purchased a flood insurance policy meeting the requirements of the current
guidelines of the Federal Insurance Administration with a generally acceptable
insurance carrier, in an amount representing coverage not less than the lesser
of (i) the outstanding principal balance of the Mortgage Loan or (ii) the
maximum amount of insurance which is available under the National Flood
Insurance Act of 1968, the Flood Disaster Protection Act of 1973 or the National
Flood Insurance Reform Act of 1994, as amended. The Servicer shall also
maintain, to the extent such insurance is available, on REO Property, fire and
hazard insurance in the amounts described above, liability insurance and, to the
extent required and available under the National Flood Insurance Act of 1968, as
amended, and the Servicer determines that such insurance is necessary in
accordance with accepted first and second mortgage servicing practices of
prudent lending institutions with respect to Sub-Pool 1, and in accordance with
accepted first mortgage servicing practices of prudent lending institutions with
respect to Sub-Pool 2, flood insurance in an amount equal to that required
above. Any amounts collected by the Servicer under any such policies (other than
amounts to be applied to the restoration or repair of the Mortgaged Property, or
to be released to the Mortgagor in
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accordance with customary first and second mortgage servicing procedures with
respect to Sub- Pool 1, and with customary first mortgage servicing procedures
with respect to Sub-Pool 2) shall be deposited in the Principal and Interest
Account with respect to the related Sub-Pool, subject to retention by the
Servicer to the extent such amounts constitute Servicing Compensation or to
withdrawal pursuant to Section 5.04 above. It is understood and agreed that no
earthquake or other additional insurance need be required by the Servicer of any
Mortgagor or maintained on REO Property, other than pursuant to such applicable
laws and regulations as shall at any time be in force and as shall require such
additional insurance. All policies required hereunder shall be endorsed with
standard mortgagee clauses with losses payable to the Servicer. Any
out-of-pocket expenses incurred by the Servicer pursuant to this Section 5.07,
including without limitation any advances of premiums on insurance policies
required by this Section 5.07, shall constitute Servicing Advances.
Section 5.08 Maintenance of Mortgage Impairment Insurance Policy.
In the event that the Servicer shall obtain and maintain a blanket policy
insuring against fire and hazards of extended coverage on all of the Mortgage
Loans or all of the Mortgage Loans in a Sub-Pool, then, to the extent such
policy names the Servicer as loss payee and provides coverage in an amount equal
to the aggregate unpaid principal balance on the related Mortgage Loans without
co-insurance, and otherwise complies with the requirements of Section 5.07
above, the Servicer shall be deemed conclusively to have satisfied its
obligations with respect to fire and hazard insurance coverage under Section
5.07 above, it being understood and agreed that such blanket policy may contain
a deductible clause, in which case the Servicer shall, in the event that there
shall not have been maintained on the related Mortgaged Property a policy
complying with Section 5.07 above, and there shall have been a loss which would
have been covered by such policy, deposit in the related Principal and Interest
Account the difference, if any, between the amount that would have been payable
under a policy complying with Section 5.07 above and the amount paid under such
blanket policy. On the Closing Date, such blanket policy is maintained with St.
Paul Insurance Company.
Section 5.09 Fidelity Bond.
The Servicer shall maintain with a responsible company, and at its own
expense, a blanket fidelity bond and an errors and omissions insurance policy,
in a minimum amount acceptable to FNMA or FHLMC or otherwise as is commercially
available at a cost that is not generally regarded as excessive by industry
standards, with broad coverage on all officers, employees or other persons
acting in any capacity requiring such persons to handle funds, money, documents
or papers relating to the Mortgage Loans ("Servicer Employees"). Any such
fidelity bond and errors and omissions insurance shall protect and insure the
Servicer against losses, including losses resulting from forgery, theft,
embezzlement, fraud, errors and omissions and negligent acts of such Servicer
Employees. Such fidelity bond shall also protect and insure the Servicer against
losses in connection with the release or satisfaction of a Mortgage Loan without
having obtained payment in full of the indebtedness secured thereby. No
provision of this Section 5.09 requiring such fidelity bond and errors and
omissions insurance shall diminish
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or relieve the Servicer from its duties and obligations as set forth in this
Agreement. Upon the request of the Trustee or the Certificate Insurer, the
Servicer shall cause to be delivered to the Trustee or the Certificate Insurer a
certified true copy of such fidelity bond and insurance policy.
Section 5.10 Title, Management and Disposition of REO Property.
In the event that title to any Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure (an "REO Property"), the deed or
certificate of sale shall be taken in the name of the Trustee for the benefit of
the Certificateholders.
The Servicer shall manage, conserve, protect and operate each REO Property
for the Certificateholders solely for the purpose of its prudent and prompt
disposition and sale. The Servicer shall, either itself or through an agent
selected by the Servicer, manage, conserve, protect and operate the REO Property
in the same manner that it manages, conserves, protects and operates other
foreclosed property for its own account, and in the same manner that similar
property in the same locality as the REO Property is managed. The Servicer shall
attempt to sell the same (and may temporarily rent the same) on such terms and
conditions as the Servicer deems to be in the best interest of the Certificate
Insurer and the Certificateholders. Any out-of-pocket expenses incurred by the
Servicer pursuant to this Section 5.10 shall be Servicing Advances.
The Servicer shall cause to be deposited, no later than five Business Days
after the receipt thereof, in the related Principal and Interest Account, all
revenues received with respect to the conservation and disposition of the
related REO Property and shall retain, or withdraw from such amounts, funds
necessary for the proper operation, management and maintenance of the related
REO Property and the fees of any managing agent acting on behalf of the
Servicer.
The disposition of REO Property shall be carried out by the Servicer at
such price, and upon such terms and conditions, as the Servicer deems to be in
the best interest of the Certificateholders and, as soon as practicable
thereafter, the expenses of such sale shall be paid. The proceeds of sale of the
REO Property shall be promptly deposited in the related Principal and Interest
Account, net of Excess Proceeds, any related unreimbursed Servicing Advances,
accrued and unpaid Servicing Fees and unreimbursed Monthly Advances payable to
the Servicer in accordance with Section 5.04 above, for distribution to the
Certificateholders in accordance with Section 6.06.
In the event any Mortgaged Property is acquired as aforesaid or otherwise
in connection with a default or imminent default on a Mortgage Loan, the
Servicer shall sell such Mortgaged Property for cash within two years after its
acquisition of such Mortgaged Property for purposes of Section 860(G)(a)(8) of
the Code unless the Servicer either (i) applies, at the expense of the Trust
Fund (as a Servicing Advance), more than 60 days prior to the expiration of such
two year period, and is granted an extension of time by the Internal Revenue
Service to sell such Mortgaged Property (in which case the Servicer shall sell
such Mortgaged Property
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prior to the expiration of any extension to such two-year grace period) or (ii)
receives an Opinion of Counsel to the effect that the holding of such Mortgaged
Property subsequent to two years after its acquisition will not result in the
imposition of taxes on "prohibited transactions" as defined in section 860F of
the Code or cause the Trust Fund REMIC to fail to qualify as a REMIC at any time
that any Class A Certificates are outstanding. Notwithstanding any other
provision of this Agreement, (i) no Mortgaged Property acquired by the Servicer
pursuant to this Section shall be rented (or allowed to continue to be rented)
or otherwise used for the production of income by or on behalf of the Trust
Fund, and (ii) no construction shall take place on such Mortgaged Property in
such a manner or pursuant to any terms, such that in the case of either clause
(i) or (ii) such action would cause such Mortgaged Property to fail to qualify
as "foreclosure property" within the meaning of section 860G(a)(8) of the Code
or, except as set forth below, result in the receipt by the Trust Fund or any
"net income from foreclosure property" which is subject to taxation within the
meaning of Sections 860G(c) and 857(b)(4)(B) of the Code. Any out-of-pocket
expenses incurred by the Servicer including any Opinions of Counsel pursuant to
this Section 5.10 shall constitute Servicing Advances. If a period greater than
two years is permitted under this Agreement and is necessary to sell any REO
Property, the Servicer shall give appropriate notice to the Trustee and the
Certificate Insurer and shall report monthly to the Trustee as to the progress
being made in selling such REO Property.
With respect to each Sub-Pool 1 Multifamily Loan and Sub-Pool 1 Mixed Use
Loan:
(i) Prior to the acquisition of title to such property, the Servicer
shall review the operation of such property and determine the nature of the
income that would be derived from such property if it were acquired by the Trust
Fund. If the Servicer determines from such review that:
(A) None of the income from Directly Operating such property would be
subject to tax as "net income from foreclosure property" within the meaning
of the REMIC Provisions or would be subject to the tax imposed on
"prohibited transactions" under Section 860F of the Code (either such tax
referred to herein as an "REO Tax"), such property may be Directly Operated
by the Servicer as REO Property;
(B) Directly Operating such property as an REO Property could result
in income from such property that would be subject to an REO Tax, but that
a lease of such property to another party to operate such property, or the
performance of some services by an Independent Contractor with respect to
such property, or another method of operating such property would not
result in income subject to an REO Tax, then the Servicer may (provided,
that in the good faith and reasonable judgment of the Servicer, it is
commercially feasible) acquire such property as REO Property and so lease
or operate such REO Property; or
(C) It is reasonable to believe that Directly Operating such property
as REO Property could result in income subject to an REO Tax and that no
commercially reasonable feasible means exists to operate such property as
REO Property without the
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Trust Fund incurring or possibly incurring an REO Tax on income from such
property. The Servicer shall give written notice to the Trustee and the
Certificate Insurer summarizing a proposed plan ("Proposed Plan") to manage
such property as REO Property. Such notice shall include potential sources
of income, and to the extent reasonably feasible, estimates of the amount
of income from each such source. Within a reasonable period of time after
receipt of such notice, the Servicer shall consult with the Trustee and the
Certificate Insurer and shall advise the Trustee and the Certificate
Insurer of the Servicer's federal income tax reporting position with
respect to the various sources of income that the Trust Fund would derive
under the Proposed Plan. In addition, the Trustee shall (to the extent
feasible) advise the Servicer and the Certificate Insurer of the estimated
amount of taxes that the Trust Fund would be required to pay with respect
to each such source of income. After the Servicer has provided the Trustee
and the Certificate Insurer with the information described in the two
preceding sentences, the Servicer shall either (A) implement the Proposed
Plan (after acquiring the respective property as REO Property) or (B)
manage and operate such property in a manner that would not result in the
imposition of an REO Tax on the income derived from such property. The
Servicer's decision as to how each REO Property shall be managed and
operated shall be based in either case on the good faith and reasonable
judgment of the Servicer after consultation with the Certificate Insurer as
to which means would be in the best interest of the Certificateholders and
the Certificate Insurer by maximizing (to the extent commercially feasible)
the net after-tax REO Proceeds received by the Trust Fund with respect to
such property and, to the extent consistent with the foregoing, in the same
manner as would prudent mortgage loan servicers and asset managers
operating acquired mortgaged property comparable to the respective
property. The Servicer, the Trustee and the Certificate Insurer may consult
with counsel in connection with determinations required under this Section
5.10(i)(C). The cost of such consultation by the Servicer shall constitute
a Servicing Advance. Neither the Servicer nor the Trustee shall be liable
to the Certificateholders, the Trust Fund, the Trustee, the Servicer or
each other for errors in judgment made in good faith in the exercise of
their discretion while performing their respective responsibilities under
this Section 5.10(i)(C). Nothing in this Section 5.10(i)(C) is intended to
prevent the sale of a Defaulted Mortgage Loan pursuant to the terms and
subject to the conditions of Section 5.11.
Section 5.11 Right to Repurchase Defaulted Mortgage Loans.
The Servicer, in its sole discretion, shall have the right to elect (by
written notice sent to the Trustee) to purchase on any Determination Date for
its own account from the Trust Fund any Mortgage Loan which is 90 days or more
delinquent at a price equal to the Principal Balance of such Mortgage Loan as of
the date of purchase, plus all accrued and unpaid interest on such Mortgage Loan
through the end of the Due Period in which such Determination Date falls,
computed at the Mortgage Rate plus the amount of any unreimbursed Servicing
Advances made by the Servicer with respect to such Mortgage Loan (the "Purchase
Price"). The Purchase Price for any Mortgage Loan purchased hereunder shall be
deposited by the Servicer in the related Principal and Interest Account and the
Trustee, upon receipt of a Request for Release and
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confirmation of such deposit from the Servicer in the form of Exhibit I, shall
release or cause to be released to the purchaser of such Mortgage Loan the
related Mortgage File and shall execute and deliver such instruments of transfer
or assignment prepared by the purchaser of such Mortgage Loan, in each case
without recourse, representation or warranty, as shall be necessary to vest in
the purchaser of such Mortgage Loan any Mortgage Loan released pursuant hereto
and the purchaser of such Mortgage Loan shall succeed to all the Trustee's
right, title and interest in and to such Mortgage Loan and all security and
documents related thereto. Such assignment shall be an assignment outright and
not for security. The purchaser of such Mortgage Loan shall thereupon own such
Mortgage Loan, and all security and documents, free of any further obligation to
the Trustee or the Certificateholders with respect thereto.
Section 5.12 Collection of Certain Mortgage Loan Payments.
The Servicer shall make reasonable efforts to collect all payments called
for under the terms and provisions of the Mortgage Loans, and shall, to the
extent such procedures shall be consistent with this Agreement, comply with the
terms and provisions of any applicable hazard insurance policy. Consistent with
the foregoing, the Servicer may in its discretion waive or permit to be waived
any late payment charge, prepayment charge, assumption fee or any penalty
interest in connection with the prepayment of a Mortgage Loan or any other fee
or charge which the Servicer would be entitled to retain hereunder as servicing
compensation and extend the due date for payments past due on a Mortgage Note
for a period (with respect to each payment as to which the due date is extended)
not greater than 125 days without the Certificate Insurer's prior written
consent, and in no event later than the final maturity date of the Mortgage
Loan, provided that such extension would not be considered a new mortgage loan
for federal income tax purposes. In the event the Servicer shall consent to the
deferment of the Due Dates for payments past due on a Mortgage Note, the
Servicer shall nonetheless make payment of any required Monthly Advance with
respect to the payments so extended to the same extent as if such installment
were due, owing and delinquent and had not been deferred, and shall be entitled
to reimbursement therefor in accordance with Section 5.04(ii) above.
Section 5.13 Access to Certain Documentation and Information Regarding the
Mortgage Loans.
The Servicer shall provide to the Trustee, the Certificateholders, the
Certificate Insurer and any supervisory agents or examiners of each of the
foregoing access to the documentation regarding the Mortgage Loans (such access
in the case of supervisory agents or examiners being limited to that
documentation required by applicable state and federal regulations) being
afforded without charge but only upon reasonable request and during normal
business hours at the offices of the Servicer designated by it.
Section 5.14 Superior Liens.
With respect to any Sub-Pool 1 Mortgage Loan, the Depositor or the Servicer
shall file (or cause to be filed) of record a request for notice of any action
by a superior lien-
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holder under a First Lien for the protection of the Trustee's interest, where
permitted by local law and whenever applicable state law does not require that a
junior lienholder be named as a party defendant in foreclosure proceedings in
order to foreclose such junior lienholder's equity of redemption. The Servicer
must also notify any superior lienholder in writing of the existence of the
Mortgage Loan and request notification of any action (as described below) to be
taken against the Mortgagor or the Mortgaged Property by the superior
lienholder.
With respect to any Sub-Pool 1 Mortgage Loan, if the Servicer is notified
that any superior lienholder has accelerated or intends to accelerate the
obligations secured by the First Lien, or has declared or intends to declare a
default under the mortgage or the promissory note secured thereby, or has filed
or intends to file an election to have the Mortgaged Property sold or
foreclosed, the Servicer shall take, on behalf of the Trust Fund, whatever
actions are necessary to protect the interests of the Certificateholders, and/or
to preserve the security of the related Mortgage Loan, subject to the
application of the REMIC Provisions. The Servicer shall advance the necessary
funds to cure the default or reinstate the superior lien, if such advance is in
the best interests of the Certificate Insurer and the Certificateholders. The
Servicer shall not make such an advance except to the extent that it determines
in its reasonable good faith judgment that the advance would either be
recoverable from the Liquidation Proceeds on the related Mortgage Loan or
increase the Net Liquidation Proceeds available to the Trust Fund. The Servicer
shall thereafter take such action as is necessary to recover the amount so
advanced. Any expenses incurred by the Servicer pursuant to this Section 5.14
shall be Servicing Advances with respect to Sub-Pool 1.
Section 5.15 Environmental Matters.
Notwithstanding any other provision of this Agreement to the contrary, with
respect to any Mortgage Loan as to which the Servicer has received actual notice
of, or has actual knowledge of, the presence of any regulated substance, toxic
substance, hazardous waste or hazardous substance or any similar or like
classification (as such terms are defined or used in CERCLA or any federal,
state or local statutes, laws, rules or regulations pertaining to environmental
matters) on the related Mortgaged Property, the Servicer shall not, on behalf of
the Trustee, either (i) obtain title to such Mortgaged Property as a result of
or in lieu of foreclosure or otherwise, or (ii) otherwise acquire possession of,
or take any other action, with respect to, such Mortgaged Property, unless the
Servicer has obtained the prior written consent of the Certificate Insurer. The
preceding sentence shall not apply to the presence, use or storage on the
related Mortgaged Property of hazardous substances that are generally recognized
to be appropriate to normal residential use and maintenance of the related
Mortgaged Property.
Section 5.16 Acknowledgment of Duties and Obligations.
Any provision hereof to the contrary notwithstanding, the Depositor
acknowledges that (i) as of the Closing Date the Servicer is an unincorporated
division of the Depositor, (ii) actions and agreements by an unincorporated
division of the Depositor are those of the Depositor
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and (iii) the Depositor is responsible for all duties and obligations of its
unincorporated division hereunder.
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ARTICLE VI
PAYMENTS TO THE CERTIFICATEHOLDERS
Section 6.01 Establishment of Certificate Account; Deposits in Certificate
Account.
No later than the Closing Date, the Trustee will establish and maintain
with itself one or more segregated trust accounts that are Eligible Accounts,
which shall be titled, "Certificate Account, LaSalle National Bank, as trustee
for the registered holders of AFC Mortgage Loan Asset Backed Certificates,
Series 1997-1". The Trustee shall, promptly upon receipt, deposit in the
Certificate Account and retain therein:
(i) the Available Remittance Amount (net of the amount of Monthly
Advances and Compensating Interest deposited pursuant to subclause (ii)
below) remitted by the Servicer pursuant to Section 5.04(i) above;
(ii) the related Monthly Advance and related Compensating Interest
remitted to the Trustee by the Servicer;
(iii) the Excess Spread remitted to the Trustee by the Servicer
pursuant to Section 5.04(i) above and Insured Payments pursuant to Section
6.06(b);
(iv) all income or gain from investments of funds on deposit in the
Certificate Account pursuant to Section 6.05(e) and amounts required to be
paid by the Servicer pursuant to such Section 6.05(e) in connection with
losses on investments of amounts in the Certificate Account;
(v) the Termination Price; and
(vi) any amount required to be deposited in the Certificate Account
pursuant to Section 6.14(c).
Section 6.02 Permitted Withdrawals from Certificate Account.
The Trustee shall, based upon information set forth in the Servicer's
Certificate for such Remittance Date, withdraw amounts on deposit in the
Certificate Account on each Remittance Date in the following order of priority:
(i) except as to the final Remittance Date hereunder, to pay the
Certificate Insurer the Monthly Premium pursuant to Section 6.04;
(ii) to effect the distributions described in Section 6.06(c),
exclusive of the distributions described in the last paragraph of Section
6.06(c);
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(iii) except as to the final Remittance Date hereunder, to make
deposits in the Trustee Expense Account pursuant to Section 6.03(a)(i);
and also, in no particular order of priority:
(iv) to invest amounts on deposit in the Certificate Account in
Permitted Instruments pursuant to Section 6.05;
(v) to pay on a monthly basis to the Servicer interest paid and
earnings realized on Permitted Instruments in the Certificate Account;
(vi) to withdraw any amount not required to be deposited in the
Certificate Account or deposited therein in error; and
(vii) to clear and terminate the Certificate Account upon the
termination of this Agreement in accordance with Article XI of this
Agreement.
Section 6.03 Establishment of Trustee Expense Account; Deposits in Trustee
Expense Account; Permitted Withdrawals from Trustee Expense
Account.
(a) No later than the Closing Date, the Trustee will establish and maintain
with itself one or more segregated trust accounts that are Eligible Accounts,
which shall be titled, "Trustee Expense Account, LaSalle National Bank, as
trustee for the registered holders of AFC Mortgage Loan Asset Backed
Certificates, Series 1997-1". The Trustee shall deposit into the Trustee Expense
Account:
(i) on each Remittance Date (other than the final Remittance Date
hereunder) from the amounts on deposit in the Certificate Account an amount
equal to the Annual Trustee Expense Amount, subject to the provisions of
Section 6.06(c); and
(ii) upon receipt, all income or gain from investments of funds on
deposit in the Trustee Expense Account pursuant to Section 6.05(e) and all
amounts required to be paid by the Servicer pursuant to such Section
6.05(e) in connection with losses on investments of amounts in the Trustee
Expense Account.
If at any time the amount then on deposit in the Trustee Expense Account shall
be insufficient to pay in full the fees and expenses of the Trustee then due,
the Trustee shall make demand on the Servicer to advance the amount of such
insufficiency, and the Servicer shall promptly advance such amount. If the
Servicer fails to make such advance, the Depositor shall do so upon demand of
the Trustee. Thereafter, the Servicer and the Depositor shall be entitled to
reimbursement solely from the Trustee Expense Account pursuant to subclause
(c)(ii) below for
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the amount of any such advance from any excess available after payment of Trust
Fund expenses.
(b) The Trustee may withdraw amounts on deposit in the Trustee Expense
Account for investment in Permitted Instruments pursuant to Section 6.05, and
the Trustee shall withdraw amounts on deposit in the Trustee Expense Account:
(i) to pay, as described in Section 2.08 above, the Trustee's fees and
expenses allocable to or incurred in connection with the Certificates;
(ii) to pay on a monthly basis to the Servicer interest paid and
earnings realized on Permitted Instruments in the Trustee Expense Account;
(iii) to withdraw any amounts not required to be deposited in the
Trustee Expense Account or deposited therein in error; and
(iv) to clear and terminate the Trustee Expense Account upon
termination of this Agreement with any amounts on deposit therein being
paid to the Servicer and/or the Depositor to the extent of any Reimbursable
Amounts and the remainder to the Class R Certificateholders.
(c) On the twelfth Remittance Date following the Closing Date, and on each
twelfth Remittance Date thereafter, the Trustee shall determine whether all
payments required to be made pursuant to subclauses (b)(i), (b)(ii) and (b)(iii)
above, have been made, and from any amounts remaining in the Trustee Expense
Account, the Trustee shall, based upon information set forth in the Servicer's
Certificate for such Remittance Date (in the following order of priority):
(i) pay any amounts not previously paid and required to be paid
pursuant to subclauses (b)(i), (b)(ii) and (b)(iii) above;
(ii) reimburse the Servicer and/or the Depositor, for Reimbursable
Amounts;
(iii) reimburse the Servicer and/or the Depositor for advances made by
it pursuant to the last paragraph of subclause (a) above; and
(iv) remit to the Servicer as additional Servicing Compensation any
amounts remaining in the Trustee Expense Account after payments made
pursuant to subclauses (b)(i), (b)(ii), (b)(iii), (c)(i) and (c)(ii),
above.
Section 6.04 Payment of Monthly Premium to Certificate Insurer.
On each Remittance Date commencing on April 25, 1997 (other than the final
Remittance Date hereunder), from the amounts on deposit in the Certificate
Account, prior to
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making the remittances required pursuant to Section 6.06(c), the Trustee shall
pay the Certificate Insurer the Monthly Premium.
Section 6.05 Investment of Accounts.
(a) So long as no Event of Default shall have occurred and be continuing,
and consistent with any requirements of the Code, all or a portion of any
Account, except the Pre-Funding Accounts held by the Trustee, shall be invested
and reinvested by the Trustee, as directed in writing, or by telephone or
facsimile transmission confirmed in writing, by the Servicer, in one or more
Permitted Instruments. Subject to the last paragraph of Section 5.04 above in
the case of the Principal and Interest Accounts, no such investment in any
Account shall mature later than the Business Day immediately preceding the next
Remittance Date. Consistent with any requirements of the Code, all or a portion
of the Reserve Account held by the Trustee shall be invested and reinvested by
the Trustee, as directed in writing, or by telephone or facsimile transmission
confirmed in writing, by the Holders of a majority in Percentage Interest of the
Class R Certificates in one or more Permitted Instruments. No such investment
shall mature later than the Business Day immediately preceding the next
Remittance Date.
(b) If any amounts are needed for disbursement from any Account held by the
Trustee and sufficient uninvested funds are not available to make such
disbursement, the Trustee shall cause to be sold or otherwise converted to cash
a sufficient amount of the investments in such Account. The Trustee shall not be
liable for any investment loss or other charge resulting therefrom unless the
Trustee's failure to perform in accordance with this Section 6.05 is the cause
of such loss or charge or if the Trustee is the obligor and has defaulted
thereon.
(c) Subject to Section 12.01, the Trustee shall not in any way be held
liable by reason of any insufficiency in any Account held by the Trustee
resulting from any investment loss on any Permitted Instrument included therein
(except to the extent that the Trustee is the obligor and has defaulted
thereon).
(d) The Trustee shall invest and reinvest funds in the Accounts (except the
Pre-Funding Accounts) held by the Trustee, to the fullest extent practicable,
in such manner as the Servicer or the Holders of a majority in Percentage
Interest of the Class R Certificates, as applicable, shall from time to time
direct as set forth in Section 6.05(a) above, but only in one or more Permitted
Instruments.
(e) All income or other gain from investments in any Account held by the
Trustee shall be deposited in such Account immediately on receipt, and the
Trustee shall notify the Servicer, or the Depositor, or the Holders of a
majority in Percentage Interest of the Class R Certificates as the case may be,
of any loss resulting from such investments. Upon receipt of such notification,
the Servicer, in the case of all Accounts other than the Interest Coverage
Account and the Reserve Account, the Depositor, in the case of the Interest
Coverage Account and the Class R Certificateholders in the case of the Reserve
Account, shall promptly remit the
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amount of any such loss from their own funds, without reimbursement therefor, to
the Trustee for deposit in the Account or Accounts from which the related funds
were withdrawn for investment.
Section 6.06 Priority and Subordination of Distributions.
(a) The rights of the Certificateholders to receive distributions from the
proceeds of the Trust Fund, and all ownership interests of the
Certificateholders in such distributions, shall be as set forth in this
Agreement. In this regard, all rights of the Class R Certificateholders to
receive distributions in respect of the Class R Certificates shall be subject
and subordinate to the preferential rights of the Class A Certificateholders to
receive distributions in respect of the Class A Certificates, to the extent set
forth herein. In accordance with the foregoing, the ownership interests of the
Class R Certificateholders in amounts deposited in the Accounts from time to
time shall not vest unless and until such amounts are properly distributed in
respect of the Class R Certificates in accordance with the terms of this
Agreement. Notwithstanding anything contained in this Agreement to the contrary,
no Certificateholder shall be required to refund any amount properly distributed
to it pursuant to the terms of this Agreement.
(b) As soon as possible, and in no event later than 10:00 a.m. Chicago time
on the Business Day immediately preceding each Remittance Date, subject to
receipt by the Trustee of the Servicer's Certificate, the Trustee shall furnish
the Certificate Insurer and the Servicer with a completed notice in the form set
forth as Exhibit A to the Certificate Insurance Policy (the "Notice") indicating
that an Insured Payment is necessary. The Notice shall specify the amount of
Insured Payment and shall constitute a claim for an Insured Payment pursuant to
the Certificate Insurance Policy. Upon receipt of Insured Payments on behalf of
the Class A Certificateholders under the Certificate Insurance Policy, the
Trustee shall deposit such Insured Payments in the Certificate Account and shall
distribute such Insured Payments in accordance with Section 6.02(ii) above and
Section 6.06(c) and (d).
Each Class A Certificateholder shall promptly notify the Trustee in writing
upon the receipt of a court order as described in clause (c)(vii) of the
definition of Class A Principal Remittance Amount. The Trustee shall promptly
notify the Certificate Insurer upon its receipt from any Certificateholder of
any such court order. If the payment of any portion or all of any amount that is
insured by the Certificate Insurer under the Certificate Insurance Policy is
voided pursuant to a final order of a court exercising proper jurisdiction in an
insolvency proceeding to the effect that the Trustee or the Class A
Certificateholder, as the case may be, is required to return any such payment or
portion thereof prior to the expiration date of the Certificate Insurance Policy
because such payment was voided under the U.S. Bankruptcy Code, with respect to
which order the appeal period has expired without an appeal having been filed (a
"Final Order"), and, as a result, the Trustee or any Class A Certificateholder
is required to return such voided payment, or any portion of such voided payment
made in respect of the Class A Certificates (a "Preference Amount"), the
Certificate Insurer will pay an amount equal to each such Preference Amount, on
the second Business Day following receipt by the Certificate Insurer
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of (x) a certified copy of the Final Order, (y) an assignment, in form
reasonably satisfactory to the Certificate Insurer, irrevocably assigning to the
Certificate Insurer all rights and claims of the Trustee and/or such Class A
Certificateholder relating to or arising under such Preference Amount and
appointing the Certificate Insurer as the agent of the Trustee and/or such Class
A Certificateholder in respect of such Preference Amount, and (z) a Notice
appropriately completed and executed by the Trustee or such Class A
Certificateholder, as the case may be. Such payment shall be made to the
receiver, conservator, debtor-in-possession or trustee in bankruptcy named in
the Final Order and not to the Trustee or Class A Certificateholder directly
(unless a Class A Certificateholder has previously paid such amount to such
receiver, conservator, debtor-in-possession or trustee named in such Final
Order in which case payment shall be made to the Trustee for distribution to the
Class A Certificateholder upon proof of such payment reasonably satisfactory to
the Certificate Insurer). Notwithstanding the foregoing, in no event shall the
Certificate Insurer be (i) required to make any payment under the Certificate
Insurance Policy in respect of any Preference Amount to the extent such
Preference Amount is comprised of amounts previously paid by the Certificate
Insurer thereunder, or (ii) obligated to make any payment in respect of any
Preference Amount, which payment represents a payment of the principal amount of
the Class A Certificates, prior to the time the Certificate Insurer otherwise
would have been required to make a payment in respect of such principal.
Each Class A Certificateholder, by its purchase of the Class A
Certificates, the Servicer and the Trustee hereby agree that the Certificate
Insurer may at any time during the continuation of any proceeding relating to a
preference claim direct all matters relating to such preference claim,
including, without limitation, the direction of any appeal of any order relating
to such preference claim and the posting of any surety, supersedeas or
performance bond pending any such appeal. In addition and without limitation of
the foregoing, the Certificate Insurer shall be subrogated to the rights of the
Servicer, the Trustee and each Class A Certificateholder in the conduct of any
such preference claim, including, without limitation, all rights of any party to
an adversary proceeding action with respect to any court order issued in
connection with any such preference claim.
The Trustee shall receive, as attorney-in-fact of each Holder of a Class A
Certificate, any Insured Payment from the Certificate Insurer and disburse the
same to each Holder of a Class A Certificate in accordance with the provisions
of this Section 6.06. Insured Payments disbursed by the Trustee from proceeds of
the Certificate Insurance Policy shall not be considered payment by the Trust
Fund nor shall such payments discharge the obligation of the Trust Fund with
respect to such Class A Certificates, and the Certificate Insurer shall become
the owner of such unpaid amounts due from the Trust Fund in respect of Class A
Certificates. The Trustee hereby agrees on behalf of each Holder of a Class A
Certificate for the benefit of the Certificate Insurer that it recognizes that
to the extent the Certificate Insurer makes Insured Payments, either directly or
indirectly (as by paying through the Trustee), to the Class A
Certificateholders, the Certificate Insurer will be subrogated to the rights of
such Class A Certificateholders, with respect to such Insured Payment, shall be
deemed, to the extent of the payments so made, to be a registered Class A
Certificateholder and shall receive all future Class A Remittance Amounts until
all such Insured Payments by the Certificate Insurer have
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been fully reimbursed, subject to the following paragraph. To evidence such
subrogation, the Trustee shall, or shall cause the Certificate Registrar to,
note the Certificate Insurer's rights as subrogee on the registration books
maintained by the Trustee or the Certificate Registrar upon receipt from the
Certificate Insurer of proof of payment of any Insured Payment. Except as
otherwise described herein, the Certificate Insurer shall not acquire any voting
rights hereunder as a result of such subrogation. The effect of the foregoing
provisions is that, to the extent of Insured Payments made by it, the
Certificate Insurer shall be paid before payment of the balance of the Class A
Remittance Amount for which an Insured Payment was made, is made to the other
Holders of the Class A Certificates, subject to the following paragraph.
It is understood and agreed that the intention of the parties is that the
Certificate Insurer shall not be entitled to reimbursement on any Remittance
Date for amounts previously paid by it unless on such Remittance Date the Class
A Certificateholders shall also have received the full amount of the Class A
Remittance Amount with respect to the Class A Certificates (exclusive of any
Class A Carry-Forward Amount, to the extent representing amounts previously paid
to such Class A Certificateholders as Insured Payments or representing interest
accrued in respect of Insured Payments) for such Remittance Date.
(c) On or before each Remittance Date, the Servicer shall determine the
Overcollateralization Amount after giving effect to the distribution of the
Class A Principal Remittance Amount to the Holders of the Class A Certificates
on such Remittance Date and the amount of the Net Excess Spread. On each
Remittance Date the Trustee shall withdraw from the Certificate Account the
Amount Available, and make distributions thereof, based upon the information set
forth in the Servicer's Certificate for such Remittance Date, in the following
order of priority to the extent available, except to the extent that the
priority set forth in Section 6.07 shall be applicable:
(X) If the Remittance Date is prior to the Cross-Over Date, the
Trustee shall distribute the indicated amounts in the following order of
priority:
(i) to the Class A Certificateholders (including for purposes of this
Section 6.06(c), the Certificate Insurer as the subrogee thereof), the
lesser of:
(A) the Amount Available; and
(B) the Class A Interest Remittance Amount;
(ii) to the Class A Certificateholders (including for purposes of this
Section 6.06(c), the Certificate Insurer as the subrogee thereof), to be
applied to reduce the Class A Principal Balance, to the extent described
below, until the Class A Principal Balance thereof is reduced to zero and
to make payments in respect of the amounts described in clauses (c)(v) (to
the extent the amount in clause (c)(v) represents prior Insured Payments by
the Certificate Insurer or interest accrued thereon pursuant to the
definition of Class
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A Carry-Forward Amount) and (c)(vii) of the definition of the Class A
Principal Remittance Amount, the lesser of:
(A) the balance of the Amount Available after payments described
in clause (X)(i) above; and
(B) the Class A Principal Remittance Amount;
(iii) to the Trustee Expense Account, an amount equal to the lesser of
the balance of the Amount Available after payments described in clauses
(X)(i) and (ii) above and any accrued and unpaid Annual Trustee Expense
Amount;
(iv) to the Class A Certificateholders to be applied to reduce the
Class A Principal Balance until the Class A Principal Balance has been
reduced to zero, an amount equal to the lesser of:
(A) the balance of the Amount Available after payments described
in clauses (X)(i) through (iii) above; and
(B) the Additional Principal;
(v) to the Servicer and/or the Depositor, an amount equal to the
lesser of the balance of the Amount Available after payments described in
clauses (X)(i) through (iv) above and any expenses incurred in connection
with any third party claims that remain unreimbursed;
(vi) to the Servicer, an amount equal to the lesser of the balance of
the Amount Available after payments described in clauses (X)(i) through (v)
above and the aggregate of any Nonrecoverable Servicing Advances and
Nonrecoverable Monthly Advances previously made by the Servicer and not
previously reimbursed; and
(vii) to the Class R Certificateholders, the balance of the Amount
Available, if any, after payments described in clauses (X)(i) through (vi)
above.
(Y) If the Remittance Date is on or after the Cross-Over Date, the Trustee
shall distribute the indicated amounts in the following order of priority:
(i) to the Class A Certificateholders (including for purposes of
this Section 6.06(c), the Certificate Insurer as the subrogee thereof),
the lesser of:
(A) the balance of the Amount Available; and
(B) the Class A Interest Remittance Amount;
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(ii) to the Class A Certificateholders (including for purposes of this
Section 6.06(c), the Certificate Insurer as the subrogee thereof), to be
applied to reduce the Class A Principal Balance until the Class A Principal
Balance has been reduced to zero and to make payments in respect of the
amounts described in clauses (c)(v) (to the extent the amounts described in
clause (c)(v) represent prior Insured Payments by the Certificate Insurer
or interest accrued thereon pursuant to the definition of Class A
Carry-Forward Amount) and (c)(vii) of the definition of Class A Principal
Remittance Amount, the lesser of:
(A) the balance of the Net Excess Amount Available after
payments described in clause (Y)(i) above; and
(B) the Class A Principal Remittance Amount;
(iii) to the Trustee Expense Account, an amount equal to the lesser of
the balance of the Amount Available after payments described in clauses
(Y)(i) and (ii) above and any accrued and unpaid Annual Trustee Expense
Amount;
(iv) to the Servicer and/or the Depositor, an amount equal to the
lesser of the balance of the Amount Available after payments described in
clauses (Y)(i) through (iii) above and any expenses incurred in connection
with any third party claims that remain unreimbursed;
(v) to the Servicer, an amount equal to the lesser of the balance of
the Amount Available after payments described in clauses (Y)(i) through
(iv) above and the aggregate of any Nonrecoverable Servicing Advances and
Nonrecoverable Monthly Advances previously made by the Servicer and not
previously reimbursed; and
(vi) to the Class R Certificateholders, the balance of the Amount
Available, if any, after payments described in clauses (Y)(i) through (v)
above.
As contemplated by Section 6.06(b) above, amounts distributed to the Class
A Certificateholders pursuant to Sections 6.06(c)(X)(i) and (ii) and
6.06(c)(Y)(i) and (ii) above shall be applied first to distributions to the
actual Certificateholders, to the extent of the Class A Remittance Amount with
respect to the Class A Certificates (exclusive of any Class A Carry-Forward
Amount to the extent representing amounts previously paid to the Class A
Certificateholders, as Insured Payments or representing interest accrued in
respect of Insured Payments), and then to reimbursement payments to the
Certificate Insurer as subrogee to such Certificateholders.
Upon the earlier to occur of (i) the May 27, 1997 Remittance Date and (ii)
the termination of this Agreement, the Trustee shall distribute any amount
remaining in the Pre-Funding Accounts to the Class A Certificateholders, to
reduce the Class A Principal Balance until the Class A Principal Balance is
zero.
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(d) Except as otherwise provided in the next succeeding sentence and
Sections 6.06(e) and 6.07, all distributions made to the Class A
Certificateholders or Class R Certificateholders as a Class on each Remittance
Date will be made on a pro rata basis among the Certificateholders of record of
the respective Class on the immediately preceding Record Date, based on the
Percentage Interest represented by their respective Certificates, and shall be
made by wire transfer of immediately available funds to the account of such
Certificateholder at a bank or other entity having appropriate facilities
therefor, if such Certificateholder shall own of record (i) any Class R
Certificate, or (ii) any Class A Certificate with an initial Class A Principal
Balance in excess of $5,000,000 appearing in the Certificate Register and shall
have provided timely and complete wiring instructions, and otherwise by check
mailed to the address of such Certificateholder appearing in the Certificate
Register. The final distribution on each Certificate will be made in the manner,
but only upon presentment and surrender of such Certificate at the location
specified in the notice to Certificateholders of such final distribution.
(e) Each distribution with respect to a Book-Entry Certificate shall be
paid to the Depository, which shall credit the amount of such distribution to
the accounts of its Depository Participants in accordance with its normal
procedures. Each Depository Participant shall be responsible for disbursing such
distribution to the Certificate Owners that it represents and to each indirect
participating brokerage firm (a "brokerage firm" or "indirect participating
firm") for which it acts as agent. Each brokerage firm shall be responsible for
disbursing funds to the Certificate Owners that it represents. All such credits
and disbursements with respect to a Book-Entry Certificate are to be made by the
Depository and the Depository Participants in accordance with the provisions of
the Class A Certificates. None of the Trustee, the Certificate Registrar, the
Depositor nor the Servicer shall have any responsibility therefor except as
otherwise provided by applicable law.
To the extent applicable and not contrary to the rules of the Depository,
the Trustee shall comply with the provisions of the form of the Class A
Certificate as set forth in Exhibit B-1.
Section 6.07 Insufficiency of Amount Available or Net Excess Amount
Available.
If as of any Remittance Date the Amount Available, if such Remittance Date
is prior to the Cross-Over Date, or the Net Excess Amount Available plus that
additional portion of the Amount Available constituting Excess Spread available
to pay the Class A Interest Remittance Amount with respect to the Class A
Certificates pursuant to Section 6.06(c)(Y)(i) above, if such Remittance Date is
on or after the Cross-Over Date, is insufficient to pay the Class A
Certificateholders the Class A Interest Remittance Amount, then the Amount
Available or Net Excess Amount Available, plus that additional portion of the
Amount Available constituting Excess Spread available to pay the Class A
Interest Remittance Amount with respect to the Class A Certificates pursuant to
Section 6.06(c)(Y)(i) shall be distributed by the Trustee to the Class A
Certificateholders (including the Certificate Insurer as subrogee thereof) as
follows: first, to the extent of the Class A Remittance Amount with respect to
the Class A
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Certificates exclusive of that portion of the Class A Carry-Forward Amount
representing amounts previously covered by Insured Payments or interest accrued
in respect of such Insured Payments, in proportion to the amount of interest
that would have been distributed to such Class A Certificateholder absent such
shortfall; and second, that portion of the Class A Carry-Forward Amount
representing amounts previously covered by Insured Payments or interest accrued
in respect of such Insured Payments, in proportion to the amount of interest
that would have been distributed to such Class A Certificateholder absent such
shortfall.
Section 6.08 Statements.
On or before 10:00 a.m. New York City time on the Determination Date, the
Servicer shall deliver to the Certificate Insurer and the Trustee, by telecopy,
the receipt and legibility of which shall be confirmed telephonically, and with
hard copy thereof (and in the case of the remittance report referenced below,
such report in computer readable magnetic tape, electronic data file or
equivalent form) to be delivered on the following Business Day, a certificate
signed by a Servicing Officer and the Servicer's Monthly Remittance Report
substantially in the form attached hereto as Exhibit Q (together, the
"Servicer's Certificate") stating the date (day, month and year), the series
number of the Certificates, the date of this Agreement, and the following
information (with respect to each Sub-Pool where appropriate):
(i) The Available Remittance Amount for the related Remittance Date
and any portion thereof that has been deposited in the Certificate Account
but, pursuant to an order of a United States bankruptcy court of competent
jurisdiction imposing a stay pursuant to Section 362 of the United States
Bankruptcy Code, may not be withdrawn therefrom, the Amount Available and
the Net Excess Amount Available;
(ii) The Class A Principal Balance and the Sub-Pool Principal Balances
as reported in the prior Servicer's Certificate pursuant to subclause (xii)
below, or, in the case of the first Determination Date, the Original Class
A Principal Balance and the Original Sub-Pool Principal Balances;
(iii) The number and Principal Balances of all Mortgage Loans which
were the subject of Principal Prepayments during the related Due Period;
(iv) The amount of all Curtailments which were received during the Due
Period;
(v) The combined aggregate amount of (i) all Excess Payments and (ii)
the principal portion of all Monthly Payments received during the related
Due Period;
(vi) The amount of interest received on the Mortgage Loans;
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(vii) The amount of the Monthly Advances to be made on the
Determination Date, the Compensating Interest payment to be made on the
Determination Date, the Interest Coverage Addition to be made on the
Remittance Date and the amount to be deposited into the Certificate Account
from funds on deposit in the Reserve Account pursuant to Section 6.14(c) on
the Remittance Date;
(viii) The delinquency and foreclosure information calculated as of
the end of the month preceding the Determination Date set forth in the form
attached hereto as Exhibit N;
(ix) The Class A Principal Remittance Amount and the Class A Interest
Remittance Amount;
(x) The amount of the Insured Payment, if any, to be made on the
related Remittance Date, the amount, if any, of previously unreimbursed
Insured Payments, and the aggregate portion of the amounts described in
clause (ix) above that represents unpaid interest accrued in respect of
Insured Payments in accordance with the definition of Class A Carry-Forward
Amount;
(xi) The amount to be distributed to the Class R Certificateholders
for the Remittance Date;
(xii) The Class A Principal Balance and the Sub-Pool Principal
Balances after giving effect to the distribution to be made on the related
Remittance Date;
(xiii) With respect to each Sub-Pool, the weighted average maturity
and the weighted average Mortgage Rate;
(xiv) The Servicing Fees and the amounts to be paid to the Certificate
Insurer as the Monthly Premium pursuant to Section 6.02(i) above and to the
Trustee Expense Account pursuant to Section 6.03;
(xv) The amount of all payments or reimbursements to the Servicer
pursuant to Section 5.04 (ii), (iv), (vi) and (ix) above and the amounts,
if any, withdrawn pursuant to 5.04 (v) and (vii) above;
(xvi) The related Sub-Pool Factor determined using the related
Sub-Pool Principal Balance in subclause (xii) above, computed to seven (7)
decimal places;
(xvii) The Excess Spread to be deposited in the Certificate Account
pursuant to Section 6.01(iii) above;
(xviii) The allocation of Excess Spread to be distributed pursuant to
Section 6.06(c) above to Class A Certificateholders, to the Servicer and/or
Depositor as
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Reimbursable Amounts, to the Servicer as Nonrecoverable Advances and to the
Class R Certificateholders;
(xix) The sum of all Realized Losses with respect to each Sub-Pool
since the Closing Date, the Subordinated Amount as of such Remittance Date,
and the Unrecovered Class A Portion if any;
(xx) The amounts which are reimbursable to the Servicer or the
Depositor, as appropriate, pursuant to Sections 6.02, 6.03(c), 6.04 and
6.06(c) above;
(xxi) With respect to each Sub-Pool, the number of Mortgage Loans at
the beginning and at the end of the related Due Period;
(xxii) If the related Remittance Date is the final Remittance Date in
connection with the purchase by the Servicer of all the Mortgage Loans and
REO Properties pursuant to Section 11.01, the Termination Price;
(xxiii) With respect to each Sub-Pool, for the May 27, 1997 Remittance
Date, the balance of the related Pre-Funded Amount that has not been used
to purchase Subsequent Mortgage Loans and that is being distributed to the
Class A Certificateholders as a mandatory prepayment of principal, if any,
on such Remittance Date pursuant to the last paragraph of Section 6.06(c)
above;
(xxiv) The Overcollateralization Amount after giving effect to the
distribution of the Class A Principal Remittance Amount on such Remittance
Date, the Required Overcollateralization Amount for such Remittance Date
and the amount of the Additional Principal to be distributed on such
Remittance Date;
(xxv) The aggregate unpaid principal balance of all delinquent
Mortgage Loans repurchased by the Servicer on any Determination Date and
cumulatively since the Closing Date pursuant to Section 5.11;
(xxvi) The amount on deposit in the Reserve Account for such
Remittance Date and the amount, if any, released to the Class R
Certificateholders from the Reserve Account on such Remittance Date
pursuant to Section 6.14(c)(i); and
(xxvii) Such other information as the Certificate Insurer and the
Certificateholders may reasonably request and which is produced or
available in the ordinary course of the Servicer's business.
The Trustee shall forward copies of such Servicer's Certificate to the
Certificateholders and Moody's on the Remittance Date. All reports prepared by
the Trustee of such withdrawals and deposits will be based in whole or in part
upon the information
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provided to the Trustee by the Servicer, and the Trustee may fully rely upon and
shall have no liability with respect to such information provided by the
Servicer.
To the extent that there are inconsistencies between the telecopy of the
Servicer's Certificate and the hard copy thereof, the Trustee shall be entitled
to rely upon the telecopy.
In the case of information furnished pursuant to subclauses (ii), (iii),
(iv), (v), (ix), (x) and (xii) above, the amounts shall be expressed in a
separate section of the report as a dollar amount per $1,000 original dollar
amount as of the Cut-off Date, in the case of such information relevant to Class
A Certificateholders.
(a) Within a reasonable period of time after the end of each calendar year,
the Servicer shall furnish to the Trustee for distribution to each Person who at
any time during the calendar year was a Class A Certificateholder, if requested
in writing by such Person, such information as is reasonably necessary to
provide to such Person a statement containing the information set forth in
subclauses (vi), (ix) and (xiv) above, aggregated for such calendar year or
applicable portion thereof during which such Person was a Certificateholder.
Such obligation of the Servicer shall be deemed to have been satisfied to the
extent that substantially comparable information shall be provided by the
Servicer to the Trustee or the Certificateholders pursuant to any requirements
of the Code as from time to time are in force.
(b) On each Remittance Date, the Trustee shall forward to the Class R
Certificateholders a copy of the reports forwarded to the Class A
Certificateholders in respect of such Remittance Date and a statement setting
forth the amounts actually distributed to the Class R Certificateholders on such
Remittance Date together with such other information as the Servicer deems
necessary or appropriate.
(c) Within a reasonable period of time after the end of each calendar year,
the Servicer shall furnish to the Trustee for distribution to each Person who at
any time during the calendar year was a Class R Certificateholder, if requested
in writing by such Person, such information as is reasonably necessary to
provide to such Person a statement containing the information provided pursuant
to the previous paragraph aggregated for such calendar year or applicable
portion thereof during which such Person was a Class R Certificateholder. Such
obligation of the Servicer shall be deemed to have been satisfied to the extent
that substantially comparable information shall be provided by the Servicer to
the Trustee or the Certificateholders pursuant to any requirements of the Code
as from time to time in force.
(d) Upon reasonable advance notice in writing, the Servicer will provide to
each Class A Certificateholder which is a savings and loan association, bank or
insurance company access to information and documentation regarding the Mortgage
Loans sufficient to permit such Class A Certificateholders to comply with
applicable regulations of the FDIC or other regulatory authorities with respect
to investment in the Class A Certificates.
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(e) The Servicer shall furnish to each Certificateholder, during the term
of this Agreement, such periodic, special, or other reports or information,
whether or not provided for herein, as shall be necessary, reasonable, or
appropriate with respect to the Certificateholder, or otherwise with respect to
the purposes of this Agreement, all such reports or information to be provided
by and in accordance with such applicable instructions and directions as the
Certificateholder may reasonably require; provided, that the Servicer shall be
entitled to be reimbursed by such Certificateholder for the Servicer's actual
expenses incurred in providing such reports, if such reports are not generally
produced in the ordinary course of the Servicer's business.
(f) Reports and computer tapes furnished by the Servicer pursuant to this
Agreement shall be deemed confidential and of proprietary nature, and shall not
be copied or distributed except in connection with the purposes and requirements
of this Agreement. No Person entitled to receive copies of such reports or tapes
shall use the information therein for the purpose of soliciting the customers of
the Depositor or for any other purpose except as set forth in this Agreement.
Section 6.09 Advances by the Servicer.
Not later than 4:00 p.m. New York time on the Determination Date, the
Servicer shall remit to the Trustee for deposit in the Certificate Account an
amount (as indicated in the Servicer's Certificate prepared pursuant to Section
6.08 above), to be distributed on the related Remittance Date pursuant to
Section 6.06 above, equal to the sum of, with respect to each Sub-Pool (a) the
interest portions of the aggregate amount of Monthly Payments due but not
received during the related Due Period (net of the Servicing Fee, the Annual
Trustee Expense Amount and, after the Cross-Over Date, the Excess Spread), plus
(b) with respect to each REO Property which was acquired during or prior to the
related Due Period and as to which an REO Disposition did not occur during the
related Due Period, an amount equal to the excess, if any, of interest on the
Principal Balance of such REO Property at the related Mortgage Rate (net of the
Servicing Fee, the Annual Trustee Expense Amount and, after the Cross-Over Date,
the Excess Spread) for the most recently ended calendar month over the net
income from the REO Property transferred to the Principal and Interest Account
with respect to the related Sub-Pool during the related Due Period pursuant to
Section 5.10 above, plus (c) with respect to a Mortgage Loan with a delinquent
Balloon Payment, an amount equal to the assumed interest portion of the
aggregate amount of the Monthly Payment that would have been due on the related
Due Period (net of the Servicing Fee, the Annual Trustee Expense Amount and,
after the Cross-Over Date, the Excess Spread) based on the original amortization
schedule for such Mortgage Loan, plus (d) with respect to each Remittance Date,
the amount necessary on the first, second, third, and fourth Remittance Dates to
pay 30 days' interest with respect to each non-delinquent Mortgage Loan (net of
the Servicing Fee and the Annual Trustee Expense Amount), plus (e) with respect
to each Remittance Date, if pursuant to Section 5.04(ii) above the Servicer has
previously reimbursed itself for a Monthly Advance made pursuant to Section
6.09(c) or Section 6.09(d) above, then an amount equal to such amount previously
reimbursed, such sum being defined herein as the "Monthly Advance". In lieu of
making all or a portion
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of such Monthly Advance from its own funds, the Servicer may (i) cause to be
made an appropriate entry in its records relating to the Principal and Interest
Account with respect to the related Sub-Pool that any amount held in the
Principal and Interest Account with respect to the related Sub-Pool, and not
required for distribution on the immediately succeeding Remittance Date has been
used by the Servicer in discharge of its obligation to make any such Monthly
Advance and (ii) transfer such funds from the Principal and Interest Account
with respect to the related Sub-Pool to the Certificate Account. Any funds so
applied and transferred shall be replaced by the Servicer by deposit in the
related Principal and Interest Account no later than the close of business on
the Business Day immediately preceding the Remittance Date on which such funds
are required to be distributed pursuant to this Agreement. The Servicer may
reimburse itself pursuant to Section 5.04 above for Monthly Advances made from
its own funds. Notwithstanding the foregoing, the Monthly Advance required on
the first Remittance Date by Section 6.09(d) above shall be mandatory, and each
successive Monthly Advance pursuant to Section 6.09(d) and Section 6.09(e) above
shall be made if and to the extent the Servicer has reimbursed itself for
amounts previously advanced pursuant to such Sections 6.09(d) and 6.09(e), as
the case may be.
Section 6.10 Compensating Interest.
Not later than the close of business on each Determination Date, with
respect to each Mortgage Loan for which a Principal Prepayment or Curtailment
was received during the related Due Period, the Servicer shall remit to the
Trustee for deposit in the Certificate Account from amounts otherwise payable to
it as Servicing Compensation (as indicated in the Servicer's Certificate
prepared pursuant to Section 6.08 above), an amount equal to the difference
between (a) 30 days' interest on the Principal Balance of each such Mortgage
Loan immediately following the Remittance Date in the related Due Period at the
Mortgage Rate, net of the Servicing Fee and the Annual Trustee Expense Amount,
and after the Cross-Over Date, the Excess Spread, and (b) the amount of interest
actually received on each such Mortgage Loan for such Due Period, net of the
Servicing Fee, the Annual Trustee Expense Amount, and after the Cross-Over Date,
the Excess Spread.
Section 6.11 [Reserved].
Section 6.12 Pre-Funding Account.
(a) With respect to each Sub-Pool and no later than the Closing Date, the
Trustee shall establish and maintain with itself one or more segregated trust
accounts that are Eligible Accounts, which shall be titled, with respect to
Sub-Pool 1, "Sub-Pool 1 Pre-Funding Account, LaSalle National Bank, as trustee
for the registered holders of AFC Mortgage Loan Asset Backed Certificates,
Series 1997-1 and with respect to Sub-Pool 2, "Sub-Pool 2 Pre-Funding Account,
LaSalle National Bank, as trustee for the registered holders of AFC Mortgage
Loan Asset Backed Certificates, Series 1997-1." The Trustee shall, promptly upon
receipt, deposit in the related Pre-Funding Account and retain therein the
Original Pre-Funded Amount with respect to the related Sub-Pool remitted on the
Closing Date to the Trustee by the
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Depositor. Prior to May 27, 1997 or any earlier Subsequent Transfer Date on
which the entire balance of the Original Pre-Funded Amount with respect to the
related Sub-Pool is applied to purchase Subsequent Mortgage Loans, the related
Pre-Funding Account will be an asset of the Trust Fund REMIC. Amounts on deposit
in the related Pre-Funding Account shall not be invested.
(b) Amounts on deposit in the related Pre-Funding Account shall be
withdrawn by the Trustee as follows:
(i) On any Subsequent Transfer Date, the Trustee, upon written
direction from the Depositor, shall withdraw from the related Pre-Funding
Account an amount equal to 100% of the Principal Balances of the Subsequent
Mortgage Loans with respect to the related Sub-Pool transferred and
assigned to the Trustee on such Subsequent Transfer Date and pay such
amount to or upon the order of the Depositor upon satisfaction of the
conditions with respect to such transfer and assignment set forth in
Section 2.10(b) above with respect to all Subsequent Mortgage Loans,
Section 2.10(c) with respect to Sub-Pool 1 Subsequent Mortgage Loans and
Section 2.10(d) with respect to Sub-Pool 2 Subsequent Mortgage Loans;
(ii) If the related Pre-Funded Amount has not been reduced to zero
during the Funding Period, on the May 27, 1997 Remittance Date, the Trustee
shall effect the distributions described in the last paragraph of Section
6.06(c) above;
and also, in no particular order of priority:
(iv) to withdraw any amount not required to be deposited in the
related Pre-Funding Account or deposited therein in error; and
(v) to clear and terminate the related Pre-Funding Account upon the
earliest to occur of (A) the May 27, 1997 Remittance Date and (B) the
termination of this Agreement, with any amounts remaining on deposit
therein being paid to the Class R Certificateholders.
Section 6.13 Interest Coverage Account.
(a) The Trustee shall establish and maintain with itself a separate,
segregated trust account, which shall be an Eligible Account, titled, "Interest
Coverage Account, LaSalle National Bank, as trustee for the registered holders
of AFC Mortgage Loan Asset Backed Certificates, Series 1997-1." The Trustee
shall, promptly upon receipt, deposit in the Interest Coverage Account and
retain therein the Interest Coverage Amount remitted on the Closing Date to the
Trustee by the Depositor. Funds deposited in the Interest Coverage Account shall
be held in trust by the Trustee for the Certificateholders for the uses and
purposes set forth herein. For federal income tax purposes, the Depositor shall
be the owner of the Interest Coverage Account
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and shall report all items of income, deduction, gain or loss arising therefrom.
At no time will the Interest Coverage Account be an asset of the Trust Fund
REMIC. All income and gain realized from investment of funds deposited in the
Interest Coverage Account shall be for the sole and exclusive benefit of the
Depositor and shall be remitted by the Trustee to the Depositor on the first
Business Day following each Remittance Date. The Depositor shall deposit in the
Interest Coverage Account the amount of any net loss incurred in respect of any
such Permitted Investment immediately upon realization of such loss.
(b) On the April 25, 1997 Remittance Date, the Trustee shall withdraw from
the Interest Coverage Account and deposit in the Certificate Account an amount,
as provided in the Servicer's Monthly Remittance Report, equal to (i) 30 days'
interest on the Original Pre-Funded Amounts calculated at an annual rate equal
to 10.72% minus (ii) the sum of (1) interest payments received on Subsequent
Mortgage Loans during the related Due Period and (2) Monthly Advances in respect
of interest portions of delinquent Monthly Payments on Subsequent Mortgage Loans
conveyed to the Trustee during the related Due Period.
(c) On the May 27, 1997 Remittance Date, the Trustee shall withdraw from
the Interest Coverage Account and deposit in the Certificate Account an amount,
as provided in the Servicer's Monthly Remittance Report, equal to (i) 30 days'
interest on the Original Pre-Funded Amounts minus the aggregate Principal
Balance of Subsequent Mortgage Loans conveyed to the Trustee having a Due Date
prior to April 1, 1997 at an annual rate equal to 10.72% minus (ii) the sum of
(1) interest payments received on Subsequent Mortgage Loans conveyed to the
Trustee during the related Due Period and (2) Monthly Advances in respect of
interest portions of delinquent Monthly Payments on Subsequent Mortgage Loans
conveyed to the Trustee during the related Due Period.
(d) On the date of conveyance of a Subsequent Mortgage Loan to the Trustee,
excess funds on deposit in the Interest Coverage Account in an amount equal to
the product of (i) the Principal Balance of such Subsequent Mortgage Loan and
(ii) 10.72% and (iii) a fraction, the numerator of which is the number of days
from the Subsequent Transfer Date to May 16, 1997 and the denominator of which
is 360 days, shall be remitted immediately to the Depositor.
(e) Upon the earlier of (i) the May 27, 1997 Remittance Date, (ii) the
reduction of the Class A Principal Balance to zero, (iii) the termination of
this Agreement in accordance with Section 11.01 or (iv) the date of the
conveyance of the last Subsequent Mortgage Loan to the Trustee, as set forth in
a written letter of instruction by the Servicer to the Trustee, any amount
remaining on deposit in the Interest Coverage Account after distributions
pursuant to Sections 6.13(b) and 6.13(c) above shall be withdrawn by the Trustee
and paid to the Depositor.
Section 6.14 Reserve Account.
(a) No later than the Closing Date, the Trustee shall establish and
maintain with itself a separate, segregated trust account, which shall be an
Eligible Account, titled, "Reserve Account, LaSalle National Bank, as trustee
for the registered holders of AFC Mortgage Loan
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Asset Backed Certificates, Series 1997-1." The Trustee shall, promptly upon
receipt, deposit in and retain in the Reserve Account, the Initial Reserve
Account Deposit remitted on the Closing Date to the Trustee by the Depositor.
Funds deposited in the Reserve Account shall be held in trust by the Trustee for
the Certificateholders for the uses and purposes set forth herein.
(b) The Reserve Account will be an asset of the Trust Fund REMIC and will
be treated as a "qualified reserve fund" within the meaning of Treasury
regulations Section 1.860G-2(g)(2).
(c) On any Remittance Date, amounts on deposit in the Reserve Account shall
be withdrawn on each Remittance Date by the Trustee to be applied, at the
written direction of the Servicer:
(i) to release to the Class R Certificateholders, on each Remittance
Date on which the sum of Overcollateralization Amount and the amount on
deposit in the Reserve Account exceeds the Required Overcollateralization
Amount after giving effect to all payments to be made on the Class A
Certificates on such Remittance Date, an amount equal to the lesser of (i)
the amount, if any, remaining in the Reserve Account and (ii) such excess;
(ii) to deposit in the Certificate Account, an amount equal to the
excess of the sum of the Class A Remittance Amount with respect to the
Class A Certificates for such Remittance Date over the Available Remittance
Amount for such Remittance Date after any applications of Excess Spread;
and also, in no particular order of priority:
(iii) to invest amounts on deposit in the Reserve Account in Permitted
Instruments pursuant to Section 6.05 above; and
(iv) to clear and terminate the Reserve Account upon the termination
of this Agreement with any amounts on deposit therein being paid to the
Class R Certificateholders.
(d) Upon the earlier to occur of the Cross-Over Date or the Remittance Date
on which all amounts due have been paid to the Class A Certificateholders,
including the Certificate Insurer as subrogee of the Class A Certificateholders,
the Trustee, after making any withdrawals from the Reserve Account required
pursuant to Section 6.14(c) above, shall clear and terminate the Reserve
Account, liquidate, upon the written direction of the Class R Certificateholders
holding an aggregate Percentage Interest equal to at least 51%, any investments
therein, and pay any uninvested funds therein or the proceeds of such
liquidation to the Class R Certificateholders.
Section 6.15 Compliance with Withholding Requirements.
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Notwithstanding any other provision of this Agreement, the Trustee shall
comply with all federal withholding requirements respecting payments to
Certificateholders of interest or original issue discount that the Trustee
reasonably believes are applicable under the Code. The consent of
Certificateholders shall not be required for such withholding. In the event the
Trustee does withhold any amount from interest or original issue discount
payments or advances thereof to any Certificateholder pursuant to federal
withholding requirements, the Trustee shall indicate the amount withheld to such
Certificateholders.
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ARTICLE VII
GENERAL SERVICING PROCEDURE
Section 7.01 Assumption Agreements.
When a Mortgaged Property has been or is about to be conveyed by the
Mortgagor, the Servicer shall, to the extent it has knowledge of such conveyance
or prospective conveyance, exercise its rights to accelerate the maturity of the
related Mortgage Loan under any "due-on-sale" clause contained in the related
Mortgage or Mortgage Note; provided, however, that the Servicer shall not
exercise any such right if the "due-on-sale" clause, in the reasonable belief of
the Servicer, is not enforceable under applicable law. In such event, the
Servicer shall enter into an assumption and modification agreement with the
person to whom such property has been or is about to be conveyed, pursuant to
which such person becomes liable under the Mortgage Note and, unless prohibited
by applicable law or the Mortgage Documents, the Mortgagor remains liable
thereon. The Servicer is also authorized with the prior approval of the
Certificate Insurer to enter into a substitution of liability agreement with
such person, pursuant to which the original Mortgagor is released from liability
and such person is substituted as Mortgagor and becomes liable under the
Mortgage Note. The Servicer shall notify the Trustee and the Certificate Insurer
that any such substitution or assumption agreement has been completed by
forwarding to the Trustee the original of such substitution or assumption
agreement and a duplicate thereof to the Certificate Insurer, which original
shall be added by the Trustee to the related Trustee's Mortgage File and shall,
for all purposes, be considered a part of such Trustee's Mortgage File to the
same extent as all other documents and instruments constituting a part thereof.
In connection with any assumption or substitution agreement entered into
pursuant to this Section 7.01, the Servicer shall not change the Mortgage Rate
or the Monthly Payment, defer or forgive the payment of principal or interest,
reduce the outstanding principal amount or extend the final maturity date on
such Mortgage Loan. Any fee collected by the Servicer for consenting to any such
conveyance or entering into an assumption or substitution agreement shall be
retained by or paid to the Servicer as additional Servicing Compensation.
Notwithstanding the foregoing paragraph or any other provision of this
Agreement, the Servicer shall not be deemed to be in default, breach or any
other violation of its obligations hereunder by reason of any assumption of a
Mortgage Loan by operation of law or any assumption which the Servicer may be
restricted by law from preventing, for any reason whatsoever.
Section 7.02 Satisfaction of Mortgages and Release of Mortgage Files.
The Servicer shall not grant a satisfaction or release of a Mortgage
without having obtained payment in full of the indebtedness secured by the
Mortgage or otherwise prejudice any right the Certificateholders may have under
the mortgage instruments subject to Section 5.01 above. The Servicer shall
maintain the Fidelity Bond as provided for in Section 5.09 above insuring the
Servicer against any loss it may sustain with respect to any Mortgage Loan not
satisfied in accordance with the procedures set forth herein.
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Upon the payment in full of any Mortgage Loan, or the receipt by the
Servicer of a notification that payment in full will be escrowed in a manner
customary for such purposes, the Servicer will immediately notify the Trustee
(if it holds the related Trustee's Mortgage File) or the Custodian, as the case
may be, by an Officers' Certificate in the form of Exhibit I attached hereto
(which certification shall include a statement to the effect that all amounts
received or to be received in connection with such payment which are required to
be deposited in the Principal and Interest Account pursuant to Section 5.03
above have been or will be so deposited) of a Servicing Officer and shall
request delivery to it of the Trustee's Mortgage File. Upon receipt of such
certification and request, the Trustee or such Custodian, as the case may be,
shall promptly release the related Trustee's Mortgage File to the Servicer.
Expenses incurred in connection with any instrument of satisfaction or deed of
reconveyance shall be payable only from and to the extent of Servicing
Compensation with respect to the related Sub-Pool and shall not be chargeable
to the related Principal and Interest Account or the Certificate Account.
With respect to any Mortgage Note released by the Trustee to the Servicer
or to any Subservicer in accordance with the terms of this Agreement, other than
a release or satisfaction pursuant to the second paragraph of this Section 7.02,
prior to such release, the Trustee shall (a) complete all endorsements in blank
so that the endorsement reads "Pay to the order of LaSalle National Bank, as
Trustee under the Pooling and Servicing Agreement, dated as of March 1, 1997,
Series 1997-1" and (b) complete a restrictive endorsement that reads "LaSalle
National Bank is the holder of the mortgage note for the benefit of the
Certificateholders under the Pooling and Servicing Agreement, dated as of March
1, 1997, Series 1997-1" with respect to those Mortgage Notes currently endorsed
"Pay to the order of holder", if any.
From time to time and as appropriate for the servicing or foreclosure of
any Mortgage Loan, including, for this purpose, collection under any primary
mortgage guaranty insurance policy, the Trustee shall, upon request of the
Servicer and delivery to the Trustee of a certification in the form of Exhibit I
attached hereto signed by a Servicing Officer, release the related Trustee's
Mortgage File or any document therein to the Servicer, and the Trustee shall
execute such documents as shall be necessary to the prosecution of any such
proceedings. Such servicing receipt shall obligate the Servicer to return the
Trustee's Mortgage File or any document released therefrom to the Trustee when
the need therefor by the Servicer no longer exists, unless the Mortgage Loan has
been liquidated and the Net Liquidation Proceeds relating to the Mortgage Loan
have been deposited in the Principal and Interest Account with respect to each
Sub-Pool, and remitted to the Trustee for deposit in the Certificate Account or
the Trustee's Mortgage File or such document has been delivered to an attorney,
or to a public trustee or other public official as required by law, for purposes
of initiating or pursuing legal action or other proceedings for the foreclosure
of the Mortgaged Property either judicially or non-judicially, and the Servicer
has delivered to the Trustee a certificate of a Servicing Officer certifying as
to the name and address of the Person to which such Trustee's Mortgage File or
such document was delivered and the purpose or purposes of such delivery. Upon
receipt of a
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certificate of a Servicing Officer stating that such Mortgage Loan was
liquidated, the servicing receipt shall be released by the Trustee to the
Servicer.
The Trustee shall execute and deliver to the Servicer any court pleadings,
requests for trustee's sale in respect of a Mortgaged Property or to any legal
action brought to obtain judgment against any Mortgagor on the Mortgage Note or
Mortgage or to obtain a deficiency judgment, or to enforce any other remedies or
rights provided by the Mortgage Note or Mortgage or otherwise available at law
or in equity. Together with such documents or pleadings, the Servicer shall
deliver to the Trustee a certificate of a Servicing Officer requesting that such
pleadings or documents be executed by the Trustee and certifying as to the
reason such documents or pleadings are required and that the execution and
delivery thereof by the Trustee will not invalidate or otherwise affect the lien
of the Mortgage, except for the termination of such a lien upon completion of
the foreclosure or trustee's sale. The Trustee shall, upon receipt of a written
request from a Servicing Officer, execute any document provided to the Trustee
by the Servicer or take any other action requested in such request that is, in
the opinion of the Servicer as evidenced by such request, required by any state
or other jurisdiction to discharge the lien of a Mortgage upon the satisfaction
thereof and the Trustee will sign and post, but will not guarantee receipt of,
any such documents to the Servicer, or such other party as the Servicer may
direct, within five Business Days, or more promptly if needed, of the Trustee's
receipt of such certificate or documents. Such certificate or documents shall
establish to the Trustee's satisfaction that the related Mortgage Loan has been
paid in full by or on behalf of the Mortgagor and that such payment has been
deposited in the Principal and Interest Account.
Section 7.03 Servicing Compensation.
As compensation for its services under this Agreement, subject to Section
6.10, the Servicer shall be entitled to withdraw from the Principal and Interest
Account with respect to the related Sub-Pool or to retain from interest payments
on the Mortgage Loans, the Servicer's Servicing Fee. Additional servicing
compensation in the form of assumption and other administrative fees, interest
paid on funds on deposit in the Principal and Interest Accounts, interest paid
and earnings realized on Permitted Instruments in the Principal and Interest
Accounts, Certificate Account and Trustee Expense Account, amounts remitted
pursuant to Sections 6.03(c)(iii), 6.04 and 7.01 above, late payment charges and
Excess Proceeds shall be retained by or remitted to the Servicer to the extent
not required to be remitted to the Trustee for deposit in the Certificate
Account. The Servicer shall be required to pay all expenses incurred by it in
connection with its servicing activities hereunder and shall not be entitled to
reimbursement therefor except as specifically provided for herein. The
Depositor's Yield is the property of the Depositor, and not the property of the
Servicer, and such ownership shall not be affected by any termination of the
Servicer.
Section 7.04 Annual Statement as to Compliance.
The Servicer will deliver to the Certificate Insurer, the Trustee, S&P,
Moody's, Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan
Securities Inc., not later
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than the last day of the fourth month following the end of the Servicer's fiscal
year, beginning for the fiscal year ending June 30, 1997, an Officer's
Certificate stating that (i) the Servicer has fully complied with the provisions
of Articles V and VII, (ii) a review of the activities of the Servicer during
the preceding fiscal year and of performance under this Agreement has been made
under such officer's supervision, and (iii) to the best of such officers'
knowledge, based on such review, the Servicer has fulfilled all its obligations
under this Agreement throughout such year, or, if there has been a default in
the fulfillment of any such obligation, specifying each such default known to
such officers and the nature and status thereof and the action being taken by
the Servicer to cure such default.
Section 7.05 Annual Independent Public Accountants' Servicing Report and
Comfort Letter.
Not later than the last day of the fourth month following the end of the
Servicer's fiscal year, beginning for the fiscal year ending June 30, 1997, the
Servicer, at its expense, shall cause a firm of independent public accountants
reasonably acceptable to the Trustee and the Certificate Insurer to furnish (1)
a letter or letters to the Certificate Insurer, the Trustee, S&P, Moody's,
Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities
Inc. to the effect that such firm has with respect to the Servicer's overall
servicing operations examined such operations in accordance with the
requirements of the Uniform Single Audit Program for Mortgage Bankers, and
stating such firm's conclusions relating thereto and (2) a letter to the effect
that such firm has examined Section 6.08 of this Agreement (or the comparable
section of a substantially similar agreement of the Servicer, as Servicer, under
which certain payments to the holders of certificates are guaranteed by the
Certificate Insurer) and verified the mathematical accuracy of the amounts
reported by the Servicer and that such amounts were computed in accordance with
the terms of this Agreement (or such comparable agreement).
Section 7.06 Certificateholder's, Trustee's and Certificate Insurer's Right
to Examine Servicer Records.
Each Certificateholder, the Trustee and the Certificate Insurer shall have
the right upon reasonable prior notice, during normal business hours and as
often as reasonably required, to examine and audit any and all of the books,
records or other information of the Servicer, whether held by the Servicer or by
another on behalf of the Servicer, which may be relevant to the performance or
observance by the Servicer of the terms, covenants or conditions of this
Agreement.
Section 7.07 Reports to the Trustee; Principal and Interest Account
Statements.
If any Principal and Interest Account is not maintained with the Trustee,
then not later than 25 days after each Record Date, the Servicer shall forward
to the Trustee a statement, certified by a Servicing Officer, setting forth the
status of such Principal and Interest Account as of the close of business on the
preceding Record Date and showing, for the period covered
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by such statement, the aggregate of deposits into such Principal and Interest
Account for each category of deposit specified in Section 5.03 above, the
aggregate of withdrawals from such Principal and Interest Account for each
category of withdrawal specified in Section 5.04 above, the aggregate amount of
permitted withdrawals not made in the related Due Period, the amount of any
related Monthly Advances for the related Due Period.
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ARTICLE VIII
REPORTS TO BE PROVIDED BY SERVICER
Section 8.01 Financial Statements.
The Servicer understands that, in connection with the transfer of the
Certificates, Certificateholders may request that the Servicer make available to
prospective Certificateholders annual audited financial statements of the
Servicer for one or more of the most recently completed five fiscal years for
which such statements are available, which request shall not be unreasonably
denied.
The Servicer also agrees to make available on a reasonable basis to the
Certificate Insurer and any prospective Certificateholder a knowledgeable
financial or accounting officer for the purpose of answering reasonable
questions respecting recent developments affecting the Servicer or the financial
statements of the Servicer and to permit the Certificate Insurer and any
prospective Certificateholder to inspect the Servicer's servicing facilities
during normal business hours for the purpose of satisfying the Certificate
Insurer and such prospective Certificateholder that the Servicer has the ability
to service the Mortgage Loans in accordance with this Agreement.
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ARTICLE IX
THE SERVICER
Section 9.01 Indemnification; Third Party Claims.
(a) The Servicer agrees to indemnify and hold the Trustee, the Certificate
Insurer and each Certificateholder (and their respective Affiliates, directors,
officers, employees and agents) harmless against any and all claims, losses,
penalties, fines, forfeitures, legal fees and related costs, judgments, and any
other costs, fees and expenses that the Trustee, the Certificate Insurer, any
such Certificateholder or any such other indemnified Person may sustain in any
way related to the failure of the Servicer to perform its duties and service the
Mortgage Loans in compliance with the terms of this Agreement. The Servicer
shall immediately notify the Trustee, the Certificate Insurer and each
Certificateholder if a claim is made by a third party with respect to this
Agreement, and the Servicer shall assume (with the consent of the Trustee) the
defense of any such claim and advance all expenses in connection therewith,
including reasonable counsel fees, and promptly advance funds to pay, discharge
and satisfy any judgment or decree which may be entered against the Servicer,
the Trustee, the Certificate Insurer, a Certificateholder and/or any such other
indemnified Person in respect of such claim. The Trustee may reimburse the
Servicer from amounts otherwise distributable on the Class R Certificates for
all amounts advanced by it pursuant to the preceding sentence except when the
claim relates directly to the failure of the Servicer to service and administer
the Mortgage Loans in compliance with the terms of this Agreement.
(b) The Depositor agrees to indemnify and hold the Trustee, the Certificate
Insurer and each Certificateholder (and their respective Affiliates, directors,
officers, employees and agents) harmless against any and all claims, losses,
penalties, fines, forfeitures, legal fees and related costs, judgments, and any
other costs, fees and expenses that the Trustee, the Certificate Insurer, any
Certificateholder and/or any such other indemnified person may sustain in any
way related to the failure of the Servicer, if it is an Affiliate thereof, or
the failure of the Depositor to perform their respective duties in compliance
with the terms of this Agreement. The Depositor shall immediately notify the
Trustee, the Certificate Insurer and each Certificateholder if a claim is made
by a third party with respect to this Agreement and the Depositor shall assume
(with the consent of the Trustee) the defense of any such claim and advance all
expenses in connection therewith, including reasonable counsel fees, and
promptly advance funds to pay, discharge and satisfy any judgment or decree
which may be entered against the Servicer, the Depositor, the Trustee, the
Certificate Insurer, a Certificateholder and/or any such other indemnified
Person in respect of such claim. The Trustee may, if necessary, reimburse the
Depositor from amounts otherwise distributable on the Class R Certificates if
the claim is made with respect to this Agreement for all amounts advanced by it
pursuant to the preceding sentence, except when the claim relates directly to
the failure of a Servicer, if it is, or is an affiliate of, the Depositor, to
perform its obligations to service and administer the Mortgages in compliance
with the terms of this Agreement, or the failure of the Depositor to perform its
duties in compliance with the terms of this Agreement.
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(c) The Depositor agrees to indemnify the Trust Fund for any liability
arising from the naming of the Trust Fund as a defendant in its capacity as an
assignee of the lender in an action under the Riegle Community Development and
Regulatory Improvement Act of 1994.
Section 9.02 Merger or Consolidation of the Depositor and the Servicer.
The Servicer and the Depositor will keep in full effect its existence,
rights and franchises as a corporation, and will obtain and preserve its
qualification to do business as a foreign corporation, in each jurisdiction
necessary to protect the validity and enforceability of this Agreement or any of
the Mortgage Loans and to perform its duties under this Agreement.
Any Person into which the Servicer may be merged or consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Servicer shall be a party, or any Person succeeding to the business of the
Servicer, shall be an established mortgage loan servicing institution that has a
net worth of at least $15,000,000 and shall be the successor of the Servicer
without the execution or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding;
provided, however, that the successor or surviving person to any Servicer shall
be qualified to sell mortgage loans to, and to service mortgage loans on behalf
of FNMA or FHLMC. The Servicer shall send notice of any such merger or
consolidation to the Trustee, the Rating Agencies and the Certificate Insurer.
Section 9.03 Limitation on Liability of the Servicer and Others.
The Depositor and the Servicer shall each be liable in accordance herewith
only to the extent of the obligations specifically and respectively imposed upon
and undertaken by them herein. The Servicer and any director, officer, employee
or agent of the Servicer may rely on any document of any kind which it in good
faith reasonably believes to be genuine and to have been adopted or signed by
the proper authorities respecting any matters arising hereunder. Subject to the
terms of Section 9.01, the Servicer shall have no obligation to appear with
respect to, prosecute or defend, any legal action which is not incidental to the
Servicer's duty to service the Mortgage Loans in accordance with this Agreement.
Section 9.04 Servicer Not to Resign.
The Servicer shall not assign this Agreement or any part thereof nor resign
from the obligations and duties hereby imposed on it except (i) that the
Servicer may resign from any obligations and duties hereby imposed on it in
connection with the Class A Certificates upon mutual consent of the Servicer,
the Depositor, the Certificate Insurer, the Trustee and the Majority
Certificateholders or (ii) upon the determination that the Servicer's duties
hereunder are no longer permissible under applicable law and such incapacity
cannot be cured by the Servicer. Any such determination under clause (ii)
permitting the resignation of the Servicer shall be evidenced by a written
Opinion of Counsel (who may be counsel for the Servicer) to such effect
delivered to the Trustee, the Depositor and the Certificate Insurer, which
Opinion
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of Counsel shall be in form and substance acceptable to the Trustee and the
Certificate Insurer. No such resignation shall become effective until a
successor has assumed such Servicer's responsibilities and obligations hereunder
in accordance with Section 10.02.
Section 9.05 Representations of the Servicer.
The Servicer hereby represents and warrants to the Trustee, the Certificate
Insurer and the Certificateholders as of the Closing Date:
(a) The Servicer is a federally chartered stock savings bank and has been
duly organized and is validly existing and in good standing under the laws of
the United States and has all licenses necessary to carry on its business as now
being conducted and is licensed, qualified and in good standing in each
Mortgaged Property State if the laws of such state require licensing or
qualification in order to conduct business of the type conducted by the Servicer
and perform its obligations as Servicer or exempt from such licensing or
qualification; the Servicer has the power and authority to execute and deliver
this Agreement and to perform in accordance herewith; the execution, delivery
and performance of this Agreement (including all instruments of transfer to be
delivered pursuant to this Agreement) by the Servicer and the consummation of
the transactions contemplated hereby have been duly and validly authorized by
all necessary action; this Agreement evidences the valid, binding and
enforceable obligation of the Servicer; and all requisite action has been taken
by the Servicer to make this Agreement valid, binding and enforceable upon the
Servicer in accordance with its terms, subject to the effect of bankruptcy,
insolvency, reorganization, moratorium and other, similar laws relating to or
affecting creditors' rights generally or the application of equitable principles
in any proceeding, whether at law or in equity;
(b) All actions, approvals, consents, waivers, exemptions, variances,
franchises, orders, permits, authorizations, rights and licenses required to be
taken, given or obtained, as the case may be, by or from any federal, state or
other governmental authority or agency (other than any such actions, approvals,
etc. under any state securities laws, real estate syndication or "Blue Sky"
statutes, as to which the Servicer makes no such representation or warranty),
that are necessary in connection with the execution and delivery by the Servicer
of the documents to which it is a party, have been duly taken, given or
obtained, as the case may be, are in full force and effect, are not subject to
any pending proceedings or appeals (administrative, judicial or otherwise) and
either the time within which any appeal therefrom may be taken or review thereof
may be obtained has expired or no review thereof may be obtained or appeal
therefrom taken, and are adequate to authorize the consummation of the
transactions contemplated by this Agreement and the other documents on the part
of the Servicer and the performance by the Servicer of its obligations as
Servicer under this Agreement and such of the other documents to which it is a
party;
(c) The consummation of the transactions contemplated by this Agreement
will not result in the breach of any terms or provisions of the charter or
by-laws of the Servicer or result in the breach of any term or provision of, or
conflict with or constitute a default under
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or result in the acceleration of any obligation under, any material agreement,
indenture or loan or credit agreement or other material instrument to which the
Servicer or its property is subject, or result in the violation of any law,
rule, regulation, order, judgment or decree to which the Servicer or its
property is subject;
(d) Neither this Agreement nor the Prospectus nor any statement, report or
other document prepared by the Servicer and furnished or to be furnished
pursuant to this Agreement or in connection with the transactions contemplated
hereby contains any untrue statement of material fact or omits to state a
material fact necessary to make the statements contained herein or therein not
misleading;
(e) There is no action, suit, proceeding or investigation pending or, to
the best of the Servicer's knowledge, threatened against the Servicer which,
either in any one instance or in the aggregate, may result in any material
adverse change in the business, operations, financial condition, properties or
assets of the Servicer or in any material impairment of the right or ability of
the Servicer to carry on its business substantially as now conducted, or in any
material liability on the part of the Servicer or which would draw into question
the validity of this Agreement or the Mortgage Loans or of any action taken or
to be taken in connection with the obligations of the Servicer contemplated
herein, or which would be likely to impair materially the ability of the
Servicer to perform under the terms of this Agreement; and
(f) The Servicer is not in default with respect to any order or decree of
any court or any order, regulation or demand of any federal, state, municipal or
governmental agency, which default might have consequences that would materially
and adversely affect the condition (financial or other) or operations of the
Servicer or its properties or might have consequences that would materially and
adversely affect its performance hereunder or under any Subservicing Agreement.
Section 9.06 Accounting Upon Resignation or Termination of Servicer.
Upon resignation of the Servicer under Section 9.04 or upon termination of
the Servicer under Section 10.01, the Servicer shall:
(a) deliver to its successor or, if none shall yet have been
appointed, to the Trustee the funds in the Sub-Pool 1 Principal and
Interest Account or the Sub-Pool 2 Principal and Interest Account;
(b) deliver to its successor or, if none shall yet have been
appointed, to the Trustee all Mortgage Files and related documents and
statements held by it hereunder and a Mortgage Loan portfolio computer
tape;
(c) deliver to its successor or, if none shall yet have been
appointed, to the Trustee and, upon request, to the Certificateholders a
full accounting of all funds, including a
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statement showing the Monthly Payments collected by it and a statement of monies
held in trust by it for the payments or charges with respect to the Mortgage
Loans; and
(d) execute and deliver such instruments and perform all acts reasonably
requested in order to effect the orderly and efficient transfer of servicing of
the Mortgage Loans to its successor and to more fully and definitively vest in
such successor all rights, powers, duties, responsibilities, obligations and
liabilities of the Servicer under this Agreement.
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ARTICLE X
DEFAULT
Section 10.01 Events of Default.
(a) In case one or more of the following Events of Default by the Servicer
shall occur and be continuing, that is to say:
(i)(A) an Event of Nonpayment which continues unremedied for a period
of one (1) Business Day after the date on which written notice of such
failure requiring the same to be remedied shall have been given to the
Servicer by the Trustee, to the Servicer and the Trustee by the Certificate
Insurer or to the Servicer, the Trustee and the Certificate Insurer by any
Certificateholder and, in the case of an Event of Nonpayment described in
clause (i) or (ii) of the definition thereof, the insufficiency referred to
in such clause (i) or (ii) does not result from a failure by the
Certificate Insurer to perform in accordance with the terms of this
Agreement or the Certificate Insurance Policy or a failure by the Trustee
to perform in accordance with this Agreement; (B) the failure by the
Servicer to make any required Servicing Advance, to the extent such failure
materially and adversely affects the interest of the Certificate Insurer or
the Certificateholders and which continues unremedied for a period of 20
days after the date on which written notice of such failure requiring the
same to be remedied shall have been given to the Servicer by the Trustee,
to the Servicer and the Trustee by the Certificate Insurer or to the
Servicer, the Trustee and the Certificate Insurer by any Certificateholder;
(C) the failure by the Servicer to make any required Monthly Advance to the
extent of the full amount of the Class A Interest Remittance Amount; or (D)
any other failure by the Servicer to remit to the Certificateholders, or to
the Trustee for the benefit of the Certificateholders, any payment required
to be made by the Servicer under the terms of this Agreement, to the extent
such failure materially and adversely affects the interest of the
Certificate Insurer or the Certificateholders and which continues
unremedied for a period of 20 days after the date upon which written notice
of such failure requiring the same to be remedied shall have been given to
the Servicer by the Trustee, to the Servicer and the Trustee by the
Certificate Insurer or to the Servicer, the Trustee and the Certificate
Insurer by any Certificateholder; or
(ii) failure by the Servicer duly to observe or perform, in any
material respect, any other covenants, obligations or agreements of the
Servicer as set forth herein, which failure continues unremedied for a
period of 60 days after the date on which written notice of such failure,
requiring the same to be remedied, shall have been given to the Servicer by
the Trustee, to the Servicer and the Trustee by the Certificate Insurer or
to the Servicer, the Trustee and the Certificate Insurer by any
Certificateholder; or
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(iii) a decree or order of a court or agency or supervisory authority
having jurisdiction for the appointment of a conservator or receiver or
liquidator in any insolvency, readjustment of debt, marshalling of assets
and liabilities or similar proceedings, or for the winding-up or
liquidation of its affairs, shall have been entered against the Servicer
and such decree or order shall have remained in force, undischarged or
unstayed for a period of 60 days; or
(iv) the Servicer shall consent to the appointment of a conservator or
receiver or liquidator in any insolvency, readjustment of debt, marshalling
of assets and liabilities or similar proceedings of or relating to the
Servicer or of or relating to all or substantially all of the Servicer's
property, which appointment shall continue unremedied for a period of 30
days after the Servicer has received notice of such default; or
(v) the Servicer shall admit in writing its inability to pay its debts
as they become due, file a petition to take advantage of any applicable
insolvency or reorganization statute, make an assignment for the benefit of
its creditors, or voluntarily suspend payment of its obligations, any of
which shall continue unremedied for a period of 30 days after the Servicer
has received notice of such default;
(b) then, and in each and every such case so long as such Event of Default
shall not have been remedied, (x) in the case solely of clause (i)(C) above, if
such Monthly Advance is not made by 4:00 p.m. Chicago time on the Determination
Date, the Trustee, upon receipt of written notice or discovery by a Responsible
Officer of such failure, shall give immediate telephonic notice of such failure
to a Servicing Officer of the Servicer and, unless such failure is cured, either
by receipt of payment or receipt of evidence satisfactory to the Certificate
Insurer (e.g., a wire reference number communicated by the sending bank; the
Certificate Insurer shall notify the Trustee if the Certificate Insurer receives
satisfactory evidence that such funds have been sent), by 12:00 Noon New York
City time on the following Business Day, the Trustee, or a successor servicer
appointed in accordance with Section 10.02, shall immediately make such Monthly
Advance and assume, pursuant to Section 10.02, the duties of a successor
Servicer, and (y) in the case of clauses (i)(A), (i)(B), (i)(D), (ii), (iii),
(iv) and (v) above, the Majority Certificateholders, by notice in writing to the
Servicer and a Responsible Officer of the Trustee and subject to the prior
written consent of the Certificate Insurer, which consent may not be
unreasonably withheld, may, in addition to whatever rights such
Certificateholders may have at law or equity to damages, including injunctive
relief and specific performance, commence termination of all the rights and
obligations of the Servicer hereunder and in and to the Mortgage Loans and the
proceeds thereof, as servicer. Upon receipt by the Servicer of a second written
notice (except relative to clause (i)(C) above) from the Majority
Certificateholders stating that they intend to terminate the Servicer as a
result of such Event of Default, all authority and power of the Servicer under
this Agreement, shall, subject to Section 10.02, pass to and be vested in the
Trustee or its designee and the Trustee is hereby authorized and empowered to
execute and deliver, on behalf of the Servicer, as attorney-in-fact or
otherwise,
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any and all documents and other instruments and do or cause to be done all other
acts or things necessary or appropriate to effect the purposes of such notice of
termination, including, but not limited to, the transfer and endorsement or
assignment of the related Mortgage Loans and related documents. The Servicer
agrees to cooperate with the Trustee in effecting the termination of the
Servicer's responsibilities and rights hereunder, including, without limitation,
the transfer to the Trustee or its designee for administration by it of all
amounts which shall at the time be credited by the Servicer to the Principal and
Interest Accounts or thereafter received with respect to the Mortgage Loans. For
the purposes of exercising the remedies set forth in Section 10.01 above, with
respect to clauses (i), (iii), (iv) and (v) of Section 10.01(a) above, the
Certificate Insurer shall be deemed to be the Majority Certificateholder for so
long as the Certificate Insurance Policy shall be in effect and the Certificate
Insurer shall be in full compliance with its payment obligations thereunder. If,
however, the Certificate Insurer fails to exercise any of its rights under this
Section 10.01 in respect of such clauses (i), (iii), (iv) and (v), it shall not
be deemed to be the Majority Certificateholder for the purposes of such clauses.
For the purposes of clause (ii), either the Certificate Insurer with the consent
of the Trustee or the Majority Certificateholders may direct the appropriate
remedial action provided in this Section.
The Trustee shall not be deemed to have knowledge of an Event of Default
(except an Event of Default pursuant to Section 10.01(a)(i)(A) above relating to
an Event of Nonpayment or the failure to make a Monthly Advance) unless a
Responsible Officer has received written notice thereof.
(c) Notwithstanding anything to the contrary contained in this Agreement,
upon the occurrence of an Event of Nonpayment known to a Responsible Officer of
the Trustee, the Trustee shall promptly notify the Certificate Insurer of such
occurrence with respect to such Sub-Pool. During the thirty (30) day period
following receipt of such notice, the Trustee and the Certificate Insurer shall
cooperate with each other to determine if the occurrence of such Event of
Nonpayment is more likely than not the result of the acts or omissions of the
Servicer or more likely than not the result of events beyond the control of the
Servicer. If the Trustee and the Certificate Insurer conclude that the Event of
Nonpayment is the result of the latter, the Servicer may not be terminated
unless and until an Event of Default unrelated to such Event of Nonpayment has
occurred and is continuing, whether or not the Servicer has cured such Event of
Nonpayment. If the Trustee and the Certificate Insurer conclude that the Event
of Nonpayment is the result of the former, the Certificate Insurer or the
Majority Certificateholders, as the case may be, may terminate the Servicer in
accordance with Section 10.01(b) above, provided that the Trustee shall have
until the 60th day following the date of receipt of notice of the Event of
Nonpayment to either assume the servicing or appoint a successor servicer
pursuant to Section 10.02.
If the Trustee and the Certificate Insurer cannot agree, and the basis for
such disagreement is not arbitrary or unreasonable, as to the cause of the Event
of Nonpayment, the decision of the Certificate Insurer shall control; provided,
however, that if the Certificate Insurer decides to terminate the Servicer, the
Trustee shall be relieved of its obligation to assume the
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servicing or to appoint a successor, which shall be the exclusive obligation of
the Certificate Insurer.
The Trustee shall promptly notify Moody's and S&P of the occurrence of an
Event of Default known to a Responsible Officer of the Trustee.
Notwithstanding any termination of the activities of a Servicer hereunder,
the Servicer shall be entitled to receive, out of any late collection of a
Monthly Payment on a Mortgage Loan which was due prior to the notice terminating
the Servicer's rights and obligations as Servicer hereunder and received after
such notice, that portion thereof to which the Servicer would have been entitled
pursuant to Sections 5.04(i) through (ix), and any other amounts payable to the
Servicer hereunder the entitlement to which arose prior to the termination of
its activities hereunder.
Section 10.02 Trustee to Act; Appointment of Successor.
On and after the time the Servicer receives a notice of termination
pursuant to Section 10.01 above, or the Trustee receives the resignation of the
Servicer evidenced by an Opinion of Counsel pursuant to Section 9.04, or the
Servicer is removed as servicer pursuant to this Article X, the Trustee shall be
the successor in all respects to the Servicer in its capacity as servicer under
this Agreement and the transactions set forth or provided for herein and shall
be subject to all the responsibilities, duties and liabilities relating thereto
placed on the Servicer by the terms and provisions hereof, provided, however,
that the Trustee shall have no liability or obligation hereunder in respect of
any period prior to becoming such successor, whether for acts or omissions of
any prior servicer or otherwise. The Trustee, as successor to the Servicer,
shall be obligated to make advances pursuant to Sections 6.09, 6.10, 5.10 or
5.14 unless, and only to the extent, the Trustee determines reasonably and in
good faith that such advances would not be recoverable pursuant to Sections
5.04(ii) or 6.06(c)(X)(v) and (vi) or 6.06(c)(Y)(iv) and (v), such determination
to be evidenced by a certification of a Responsible Officer of the Trustee
delivered to the Certificate Insurer. Subject to its determination that such
advances would not be recoverable in accordance with the foregoing, the Trustee,
as successor to the Servicer, shall be obligated to advance any amount described
in clause (c)(vii) of the definition of Class A Principal Remittance Amount. As
compensation therefor, the Trustee, or any successor servicer appointed pursuant
to the following paragraph, shall be entitled to all funds relating to the
Mortgage Loans which the Servicer would have been entitled to receive from the
Principal and Interest Accounts pursuant to Section 5.04 above if the Servicer
had continued to act as servicer hereunder, together with other servicing
compensation as provided in Sections 7.01 and 7.03 above. In no event shall the
Trustee or the Trust Fund acquire any rights to the Depositor's Yield.
The Trustee also shall have the right to elect to be successor to the
Servicer with respect to less than all of the responsibilities, duties and
liabilities relating thereto placed on the Servicer by the terms and provisions
hereof, and shall be entitled to select such responsibilities and duties (and
related liabilities) and appoint a successor servicer to perform the other
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responsibilities (and related liabilities). In the event that the Trustee makes
such election, the aggregate compensation payable to the Trustee and the
successor servicer may be equal to (but shall not be in excess of) that set
forth in Section 7.03, the breakdown of such compensation between the Trustee
and such successor servicer to be determined by them. In the event the Trustee
makes such election, it shall provide prompt written notice to the Depositor,
which notice shall identify the successor servicer, the portion of the
responsibilities, duties and liabilities to be performed by the Trustee and the
Servicer and the portion of the compensation of the Servicer which is to be paid
to each of the Trustee and such successor servicer.
Notwithstanding the above, the Trustee may, if it shall be unwilling to so
act, or shall, if it is unable to so act or if the Majority Certificateholders
or the Certificate Insurer so request in writing to the Trustee, appoint, or
petition a court of competent jurisdiction to appoint, any established mortgage
loan servicing institution acceptable to the Certificate Insurer, which
acceptance shall not be unreasonably withheld, that has a net worth of not less
than $15,000,000 and which is approved as a servicer by FNMA and FHLMC as the
successor to the Servicer hereunder in the assumption of all or any part of the
responsibilities, duties or liabilities of the Servicer hereunder. Any
collections received by the Servicer after removal or resignation shall be
endorsed by it to the Trustee and remitted directly to the Trustee or, at the
direction of the Trustee, to the successor servicer. The compensation of any
successor servicer (including, without limitation, the Trustee) so appointed
shall be the aggregate Servicing Fees, together with other Servicing
Compensation in the form of assumption fees, late payment charges or otherwise.
The Trustee and such successor shall take such action, consistent with this
Agreement, as shall be necessary to effectuate any such succession. The Servicer
agrees to cooperate with the Trustee and any successor servicer in effecting the
termination of the Servicer's servicing responsibilities and rights hereunder
and shall promptly provide the Trustee or such successor servicer, as
applicable, all documents and records reasonably requested by it to enable it to
assume the Servicer's functions hereunder and shall promptly also transfer to
the Trustee or such successor servicer, as applicable, all amounts which then
have been or should have been deposited in the Principal and Interest Accounts
by the Servicer or which are thereafter received with respect to the Mortgage
Loans. Neither the Trustee nor any other successor servicer shall be held liable
by reason of any failure to make, or any delay in making, any distribution
hereunder or any portion thereof caused by (i) the failure of the Servicer to
deliver, or any delay in delivering, cash, documents or records to it, or (ii)
restrictions imposed by any regulatory authority having jurisdiction over the
Servicer hereunder. No appointment of a successor to the Servicer hereunder
shall be effective until the Trustee shall have consented thereto, and written
notice of such proposed appointment shall have been provided by the Trustee to
each Certificateholder. The Trustee shall not resign as successor servicer until
another successor servicer reasonably acceptable to the Certificate Insurer has
been appointed.
Pending appointment of a successor to the Servicer hereunder, the Trustee
shall act in such capacity as hereinabove provided. In connection with such
appointment and assumption, the Trustee may make such arrangements for the
compensation of such successor out of payments on Mortgage Loans as it and such
successor shall agree; provided, however,
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that no such compensation shall be in excess of that permitted the Servicer
pursuant to Section 7.03, together with other servicing compensation in the form
of assumption fees, late payment charges or otherwise as provided in this
Agreement. The Servicer, the Trustee, any Custodian and such successor shall
take such action, consistent with this Agreement, as shall be necessary to
effectuate any such succession.
Section 10.03 Waiver of Defaults.
The Majority Certificateholders, on behalf of all Certificateholders and
subject to the consent of the Certificate Insurer, or the Certificate Insurer,
may waive any events permitting removal of the Servicer as servicer pursuant to
this Article X; provided, however, that neither the Majority Certificateholders
nor the Certificate Insurer may waive a default in making a required
distribution on a Certificate without the consent of the Holder of such
Certificate. Upon any waiver of a past default, such default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been
remedied for every purpose of this Agreement. No such waiver shall extend to any
subsequent or other default or impair any right consequent thereto except to the
extent expressly so waived. Notice of any such waiver shall be given by the
Trustee to Moody's and S&P.
Section 10.04 Trigger Event.
(a) Upon the determination by the Certificate Insurer that a Trigger Event
has occurred, the Certificate Insurer shall give notice of such Trigger Event to
the Servicer, the other parties hereto, Moody's and S&P. Upon such
determination, the Certificate Insurer may direct the Trustee to terminate the
Servicer.
(b) Upon receipt of direction to remove the Servicer pursuant to the
preceding clause (a), the Trustee shall notify the Servicer that it has been
terminated and the Servicer shall be terminated in the same manner as specified
in Sections 10.01 and 10.02.
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ARTICLE XI
TERMINATION
Section 11.01 Termination.
Subject to Section 11.02, this Agreement shall terminate upon notice to the
Trustee of either: (a) the later of the distribution to Certificateholders of
the final payment or collection with respect to the last Mortgage Loan (or
Monthly Advances of same by the Servicer), or the disposition of all funds with
respect to the last Mortgage Loan and the remittance of all funds due hereunder
and the payment of all amounts due and payable to the Certificate Insurer and
the Trustee or (b) mutual consent of the Servicer, the Certificate Insurer and
all Certificateholders in writing; provided, however, that in no event shall the
Trust established by this Agreement terminate later than the later of (i)
twenty-one years after the death of the last lineal descendant of Joseph P.
Kennedy, late Ambassador of the United States to the Court of St. James's, alive
on the date hereof or (ii) the latest possible maturity date specified in
Section 13.01(l).
Subject to Section 11.02, the Servicer may, at its option, terminate its
rights and obligations under this Agreement, on any date on which the Pool
Principal Balance is less than or equal to 5% of the sum of the Original Pool
Principal Balance and the Original Pre-Funded Amounts by purchasing, on the next
succeeding Remittance Date, all of the outstanding Mortgage Loans and REO
Properties at a price (the "Termination Price") equal to the excess, if any, of
(1) the sum of (x) (i) 100% of the Principal Balance of each outstanding
Mortgage Loan, and (ii) 30 days' interest on the amount described in clause (x)
at a rate equal to the related Net Mortgage Rate, and (y) the appraised value of
each REO Property, such appraisal to be conducted by an appraiser mutually
agreed upon by the Servicer and the Trustee in their reasonable discretion (and
approved by the Certificate Insurer in its reasonable discretion), over (2) the
amounts (other than the Termination Price being calculated pursuant to this
paragraph) that will constitute the Available Remittance Amount for such
Remittance Date (including without limitation, the amounts to be transferred to
the Certificate Account on the Determination Date immediately preceding such
Remittance Date pursuant to the second following paragraph), to the extent such
other amounts represent collections on the Mortgage Loans and REO Properties of
principal not yet applied to reduce the Principal Balance thereof or interest
adjusted to a rate equal to the Class A Pass-Through Rate accrued from and after
the respective Due Dates in the Due Period next preceding the related Due
Period. In connection with any such purchase, the Servicer shall also pay any
outstanding and unpaid fees and expenses of the Trustee and the Certificate
Insurer relating to this Agreement that such parties would otherwise have been
entitled to pursuant to Sections 12.05 and 6.03(a), in the case of the Trustee,
and Section 6.04, in the case of the Certificate Insurer.
Any such purchase by the Servicer shall be accomplished by remitting to the
Trustee for deposit into the Certificate Account on the Determination Date
immediately preceding the Remittance Date on which the purchase is to occur the
amount of the Termination
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Price. On the same day that the Termination Price is deposited into the
Certificate Account, any amounts then on deposit in the Principal and Interest
Accounts (other than Excess Spread, any amounts not required to have been
deposited therein pursuant to Section 5.03 and any amounts withdrawable
therefrom by the Servicer pursuant to Section 5.04(ii), (iii) and (vii)) shall
be transferred to the Certificate Account for distribution to the
Certificateholders on the final Remittance Date; and any amounts received by the
Servicer with respect to the Mortgage Loans and REO Properties subsequent to
such transfer shall belong to the Person purchasing the Mortgage Loans and REO
Properties. For purposes of calculating the Available Remittance Amount for the
final Remittance Date, amounts transferred to the Certificate Account pursuant
to the immediately preceding sentence on the Determination Date immediately
preceding such final Remittance Date shall in all cases be deemed to have been
received during the related Due Period, and such transfer shall be made pursuant
to Section 5.04(i).
Notice of any termination, specifying the Remittance Date upon which the
Trust Fund will terminate and the Certificateholders shall surrender their
Certificates to the Trustee for payment of the final distribution and
cancellation, shall be given promptly by the Servicer by letter to the Trustee
to be forwarded to the Certificateholders mailed during the month of such final
distribution before the Determination Date in such month, specifying (i) the
Remittance Date upon which final payment of the Certificates will be made upon
presentation and surrender of Certificates at the office of the Trustee therein
designated, (ii) the amount of any such final payment and (iii) that the Record
Date otherwise applicable to such Remittance Date is not applicable, payments
being made only upon presentation and surrender of the Certificates at the
office of the Trustee therein specified. On the final Remittance Date, the
Trustee shall distribute or credit, or cause to be distributed or credited, the
Amount Available for such Remittance Date in accordance with Section 6.06(c).
The obligations of the Certificate Insurer under this Agreement shall terminate
upon the deposit by the Servicer or the Certificate Insurer, as applicable, with
the Trustee of a sum sufficient to purchase all of the Mortgage Loans and REO
Properties as set forth above, reduction of the Class A Principal Balance to
zero and payment of any amount set forth in clause (c)(vii) of the definition of
Class A Principal Remittance Amount.
In the event that all of the Certificateholders shall not surrender their
Certificates for cancellation within six months after the time specified in the
above-mentioned written notice, the Servicer shall give a second written notice
to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
six months after the second notice, all of the Certificates shall not have been
surrendered for cancellation, the Trustee may take appropriate steps, or may
appoint an agent to take appropriate steps, to contact the remaining
Certificateholders concerning surrender of their Certificates and the cost
thereof shall be paid out of the funds and other assets of the Trust Fund which
remain subject hereto. If within nine months after the second notice all the
Certificates shall not have been surrendered for cancellation, the Class R
Certificateholders shall be entitled to all unclaimed funds and other assets of
the Trust Fund which remain subject hereto and the Trustee upon transfer of such
funds shall be discharged of any responsibility for such funds and the
Certificateholders shall look to the Class R Certificateholders for payment.
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Section 11.02 Additional Termination Requirements.
(a) In the event the Servicer exercises its purchase option as provided in
Section 11.01 above, the Trust Fund shall be terminated in accordance with the
following additional requirements, unless the Trustee has been furnished with an
Opinion of Counsel to the effect that the failure of the Trust Fund to comply
with the requirements of this Section 11.02 will not (i) result in the
imposition of taxes on "prohibited transactions" of the Trust Fund as defined in
Section 860F of the Code, or (ii) cause the Trust Fund REMIC to fail to qualify
as a REMIC at any time that any Class A Certificates are outstanding:
(i) The Servicer shall establish a 90-day liquidation period for the
Trust Fund REMIC, and specify the first day of such period in a statement
attached to the Trust Fund REMIC's final Tax Return pursuant to Treasury
regulations Section 1.860F-1. The Servicer also shall satisfy all of the
requirements of a qualified liquidation for the Trust Fund REMIC, under
Section 860F of the Code and the regulations thereunder;
(ii) The Servicer shall notify the Trustee at the commencement of such
90-day liquidation period and, at or prior to the time of making of the
final payment on the Certificates, the Servicer shall sell or otherwise
dispose of all of the remaining assets of the Trust Fund REMIC, in
accordance with the terms hereof; and
(iii) At the time of the making of the final payment on the
Certificates, the Trustee shall distribute or credit, or cause to be
distributed or credited, to the Class R Certificateholders all cash on hand
(other than cash retained to meet claims), and the Trust Fund REMIC shall
terminate at that time.
(b) By their acceptance of the Certificates, the Holders thereof hereby
authorize the Servicer, if it chooses to do so, to specify the 90-day
liquidation period on the final Tax Return of the Trust Fund REMIC, which
authorization shall be binding upon all successor Certificateholders.
Section 11.03 Depositor's Right to Depositor's Yield Absolute.
The Depositor's right to receive the Depositor's Yield with respect to each
Mortgage Loan shall be absolute and unconditional, and shall survive
notwithstanding the termination of the rights and obligations of the Servicer
hereunder, the resignation of the Servicer or the termination of this Agreement.
The Depositor's right to receive the Depositor's Yield shall not be subject to
offset or counterclaim, whether or not such right has been assigned in whole or
in part, notwithstanding any breach of any representation or warranty of the
Depositor under this Agreement or any default by the Depositor of any of its
obligations or covenants under this Agreement. The Depositor shall have the
right to assign any or all of its
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rights in and to the Depositor's Yield, without notice to or the consent of any
party of this Agreement or any Certificateholder.
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ARTICLE XII
THE TRUSTEE
Section 12.01 Duties of Trustee.
The Trustee, prior to the occurrence of an Event of Default and after the
curing of all Events of Default which may have occurred, undertakes to perform
such duties and only such duties as are specifically set forth in this
Agreement. If an Event of Default of which a Responsible Officer of the Trustee
shall have actual knowledge has occurred and has not been cured or waived, the
Trustee shall, except in those cases in which it is required by the terms of
this Agreement to follow the direction of the Certificate Insurer or the Rating
Agencies, exercise such of the rights and powers vested in it by this Agreement,
and use the same degree of care and skill in its exercise as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.
The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee which are specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them to determine whether they
conform to the requirements of this Agreement, provided, however that the
Trustee shall not be responsible for the accuracy or content of any resolution,
certificate, statement, opinion, report, document, order or other instrument
furnished by the Servicer or the Depositor hereunder. If any such instrument is
found not to conform to the requirements of this Agreement, the Trustee shall
notify the Certificate Insurer and request written instructions as to the action
the Certificate Insurer deems appropriate to have the instrument corrected, and
if the instrument is not so corrected, the Trustee will provide notice thereof
to the Certificate Insurer who shall then direct the Trustee as to the action,
if any, to be taken.
No provision of this Agreement shall be construed to relieve the Trustee
from liability for its own negligent action, its own negligent failure to act or
its own willful misconduct; provided, however, that:
(i) Prior to the occurrence of an Event of Default, and after the
curing of all such Events of Default which may have occurred, the duties
and obligations of the Trustee shall be determined solely by the express
provisions of this Agreement, the Trustee shall not be liable except for
the performance of such duties and obligations as are specifically set
forth in this Agreement, no implied covenants or obligations shall be read
into this Agreement against the Trustee and, in the absence of bad faith on
the part of the Trustee, the Trustee may conclusively rely, as to the truth
of the statements and the correctness of the opinions expressed therein,
upon any resolutions, certificates, statements or opinions, reports,
documents, orders or instruments furnished to the Trustee and conforming to
the requirements of this Agreement;
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(ii) The Trustee shall not be personally liable for an error of
judgment made in good faith by a Responsible Officer or other officers of
the Trustee, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;
(iii) The Trustee shall not be personally liable with respect to any
action taken, suffered or omitted to be taken by it in good faith in
accordance with this Agreement or at the direction of the Certificate
Insurer or the Majority Certificateholders or any of them relating to the
time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising or omitting to exercise any trust
or power conferred upon the Trustee, under this Agreement;
(iv) The Trustee shall not be required to take notice or be deemed to
have notice or knowledge of any default or Event of Default (except a
default or Event of Default set forth under Section 10.01(i)(A) or
10.01(i)(C)) unless a Responsible Officer of the Trustee shall have actual
knowledge thereof or have received written notice thereof. In the absence
of receipt of such notice, the Trustee may conclusively assume that there
is no default or Event of Default;
(v) The Trustee shall not be required to expend or risk its own funds
or otherwise incur financial liability for the performance of any of its
duties hereunder or the exercise of any of its rights or powers if there is
reasonable ground for believing that the repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured
to it and none of the provisions contained in this Agreement shall in any
event require the Trustee to perform, or be responsible for the manner of
performance of, any of the obligations of the Servicer under this Agreement
except during such time, if any, as the Trustee shall be the successor to,
and be vested with the rights, duties, powers and privileges of, the
Servicer in accordance with the terms of this Agreement;
(vi) Subject to any express requirement of this Agreement and until
such time as the Trustee shall be the successor to the Servicer and without
otherwise limiting the generality of this Section, the Trustee shall have
no duty (A) to see to any recording, filing, or depositing of this
Agreement or any agreement referred to herein or any financing statement or
continuation statement evidencing a security interest, or to see to the
maintenance of any such recording or filing or depositing or to any
rerecording, refiling or redepositing of any thereof, (B) to see to any
insurance, (C) to see to the payment or discharge of any tax, assessment,
or other governmental charge or any lien or encumbrance of any kind owing
with respect to, assessed or levied against, any part of the Trust Fund,
(D) to confirm or verify the contents of any reports or certificates of any
Servicer
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delivered to the Trustee pursuant to this Agreement believed by the Trustee
to be genuine and to have been signed or presented by the proper party or
parties; and
(vii) The Trustee shall not be deemed a fiduciary for the Certificate
Insurer in its capacity as such, except to the extent the Certificate
Insurer has made an Insured Payment and is thereby subrogated to the rights
of the Certificateholders with respect thereto.
Section 12.02 Certain Matters Affecting the Trustee.
(a) Except as otherwise provided in Section 12.01:
(i) The Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, Officers' Certificate, Opinion
of Counsel, certificate of auditors or any other certificate, statement,
instrument, opinion, report, notice, request, consent, order, appraisal,
bond or other paper or document believed by it to be genuine and to have
been signed or presented by the proper party or parties;
(ii) The Trustee may consult with counsel and any advice or opinion of
counsel shall be full and complete authorization and protection in respect
of any action taken or suffered or omitted by it hereunder in good faith
and in accordance with such advice or opinion of counsel;
(iii) The Trustee shall be under no obligation to exercise any of the
trusts or powers vested in it by this Agreement or to institute, conduct or
defend by litigation hereunder or in relation hereto at the request, order
or direction of the Certificate Insurer or any of the Certificateholders,
pursuant to the provisions of this Agreement, unless such
Certificateholders or the Certificate Insurer, as applicable, shall have
offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which may be incurred therein or thereby; except
in those cases in which the Trustee is required by the terms of this
Agreement to follow the direction of the Certificate Insurer or the
Majority Certificateholders nothing contained herein shall, however,
relieve the Trustee of the obligation, upon the occurrence of an Event of
Default (which has not been cured), to exercise such of the rights and
powers vested in it by this Agreement, and to use the same degree of care
and skill in its exercise as a prudent person would exercise or use under
the circumstances in the conduct of such person's own affairs;
(iv) The Trustee shall not be personally liable for any action taken,
suffered or omitted by it in good faith and believed by it to be authorized
or within the discretion or rights or powers conferred upon it by this
Agreement;
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(v) Prior to the occurrence of an Event of Default hereunder and after
the curing of all Events of Default which may have occurred, the Trustee
shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond or other paper or
document, unless requested in writing to do so by the Certificate Insurer
or the Majority Certificateholders; provided, however, that if the payment
within a reasonable time to the Trustee of the costs, expenses or
liabilities likely to be incurred by it in the making of such investigation
is, in the opinion of the Trustee, not reasonably assured to the Trustee by
the security afforded to it by the terms of this Agreement, the Trustee may
require reasonable indemnity against such cost, expense or liability as a
condition to taking any such action. The reasonable expense of every such
examination shall be paid by the Servicer or, if paid by the Trustee, shall
be repaid by the Servicer upon demand from such Servicer's own funds;
(vi) The right of the Trustee to perform any discretionary act
enumerated in this Agreement shall not be construed as a duty, and the
Trustee shall not be answerable for other than its negligence or willful
misconduct in the performance of such act;
(vii) The Trustee shall not be required to give any bond or surety in
respect of the execution of the Trust created hereby or the powers granted
hereunder; and
(viii) The Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through agents or
attorneys.
(b) Following the Startup Day, the Trustee shall not knowingly accept any
contribution of assets to the Trust Fund REMIC, unless the Trustee shall have
received from the Depositor an Opinion of Counsel to the effect that the
inclusion of such assets in the Trust Fund REMIC will not cause the Trust Fund
REMIC to fail to qualify as a REMIC at any time that any of the Certificates are
outstanding or subject the Trust Fund REMIC to any tax under the REMIC
Provisions or other applicable provisions of federal, state and local law or
ordinances.
Section 12.03 Trustee Not Liable for Certificates or Mortgage Loans.
The recitals contained herein and in the Certificates (other than the
certificate of authentication on the Certificates) shall be taken as the
statements of the Depositor, and the Trustee assumes no responsibility for their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Agreement or of the Certificates or of any Mortgage Loan or
related document (including any document comprising a part of the Mortgage
File). The Trustee shall not be accountable for the use or application by the
Depositor of any of the Certificates or of the proceeds of such Certificates, or
for the use or application of any funds paid to the Servicer in respect of the
Mortgage Loans or deposited in or withdrawn by any Servicer from the Principal
and Interest Accounts. The Trustee shall not be responsible for the
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legality or validity of the Agreement or the validity, priority, perfection or
sufficiency of the security for the Certificates issued or intended to be issued
hereunder. The Trustee shall have no responsibility for filing any financing or
continuation statement in any public office at any time or to otherwise perfect
or maintain the perfection of any security interest or lien granted to it
hereunder (unless the Trustee shall have become the successor to the Servicer)
or to prepare or file any Securities and Exchange Commission filing for the
Trust Fund or to record this Agreement.
Section 12.04 Trustee May Own Certificates.
The Trustee in its individual or any other capacity may become the owner or
pledgee of Certificates with the same rights it would have if it were not
Trustee, and may otherwise deal with the parties hereto.
Section 12.05 Servicer to Pay Trustee's Fees and Expenses.
The Servicer and the Depositor, jointly and severally, covenant and agree
to pay to the Trustee annually, from amounts on deposit in the Trustee Expense
Account, and the Trustee shall be entitled to, reasonable compensation (which
shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust) for all routine services rendered by it in the
execution of the trusts hereby created and in the exercise and performance of
any of the powers and routine duties hereunder of the Trustee, and the Servicer
and the Depositor will pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee
in accordance with any of the provisions of this Agreement (including the
reasonable compensation and the expenses and disbursements of its counsel and of
all persons not regularly in its employ) except any such expense, disbursement
or advance as may arise from its negligence or bad faith, provided that the
Trustee shall have no lien on the Trust Fund, other than the Trustee Expense
Account, for the payment of its fees and expenses. To the extent that actual
fees and expenses of the Trustee exceed the Annual Trustee Expense Amount, the
Servicer and/or the Depositor shall reimburse the Trustee for such shortfall out
of its own funds without reimbursement therefor, except as provided in Section
6.03. The Trustee and any director, officer, employee or agent of the Trustee
shall be indemnified, jointly and severally, by the Servicer and the Depositor
and held harmless against any loss, liability or expense (including legal fees
and expenses) (i) incurred in connection with any legal action relating to this
Agreement, the Prospectus or the Certificates, other than any loss, liability or
expense incurred by reason of willful misfeasance, bad faith or negligence in
the performance of duties hereunder, and (ii) resulting from any error in any
tax or information return prepared by the Servicer. The obligations of the
Servicer and the Depositor under this Section 12.05 shall survive termination of
the initial Servicer and payment of the Certificates, and shall extend to any
co-trustee or separate-trustee appointed pursuant to this Article XII.
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Section 12.06 Eligibility Requirements for Trustee.
The Trustee hereunder shall at all times be (i) a bank organized and doing
business under the laws of any state or the United States of America, (ii)
authorized under such laws to exercise corporate trust powers, including taking
title to the Trust Fund assets on behalf of the Certificateholders, (iii) having
a combined capital and surplus of at least $50,000,000, (iv) whose long-term
deposits shall be rated at least "BBB" by S&P and Baa2 by Moody's (except as
provided herein) or such lower long-term deposit rating by S&P as may be
approved in writing by the Certificate Insurer and S&P or the Certificate
Insurer and Moody's, as the case may be (v) is subject to supervision or
examination by federal or state authority and (vi) is reasonably acceptable to
the Certificate Insurer as evidenced in writing. If such bank publishes reports
of condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section 12.06, the combined capital and surplus of such bank shall be deemed to
be its combined capital and surplus as set forth in its most recent report of
condition so published. In case at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 12.06, the Trustee
shall resign immediately in the manner and with the effect specified in Section
12.07 hereof.
Section 12.07 Resignation and Removal of the Trustee.
The Trustee may at any time resign and be discharged from the trusts hereby
created by giving written notice thereof to the Servicer, the Rating Agencies
and the Certificate Insurer, not less than 60 days before the date specified in
such notice when such resignation is to take effect. Upon receiving such notice
of resignation, the Servicer shall promptly appoint a successor trustee which
satisfies the eligibility requirements of Section 12.06 by written instrument,
in duplicate, which instrument shall be delivered to the resigning Trustee and
to the successor trustee. A copy of such instrument shall be delivered to the
Certificateholders and the Certificate Insurer by the Servicer. Unless a
successor trustee shall have been so appointed and have accepted appointment
within 60 days after the giving of such notice of resignation, the resigning
Trustee may petition any court of competent jurisdiction for the appointment of
a successor trustee.
If at any time the Trustee shall cease to be eligible in accordance with
the provisions of Section 12.06 and shall fail to resign after written request
therefor by any Servicer, or the Certificate Insurer, or if at any time the
Trustee shall become incapable of acting, or shall be adjudged bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed,
or any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then the Servicer or the Certificate Insurer may remove the Trustee
and the Servicer shall, within 30 days after such removal, appoint, subject to
the approval of the Certificate Insurer, which approval shall not be
unreasonably withheld, a successor trustee which satisfies the eligibility
requirements of Section 12.06 by written instrument, in duplicate, which
instrument shall be delivered to the Trustee so removed and to the successor
trustee. A copy of such instrument shall be delivered to the Certificateholders,
each Rating Agency and the Certificate Insurer by the successor trustee.
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If the Trustee fails to perform in accordance with the terms of this
Agreement, the Majority Certificateholders or the Certificate Insurer may remove
the Trustee and appoint a successor trustee by written instrument or
instruments, in triplicate, signed by such Holders or their attorneys-in-fact
duly authorized, one complete set of which instruments shall be delivered to the
Servicer, one complete set to the Trustee so removed and one complete set to the
successor Trustee so appointed. A copy of such instrument shall be delivered to
the Certificate Insurer by the Servicer.
The Depositor may, in its discretion, remove the Trustee with the consent
of the Certificate Insurer, which consent shall not be unreasonably withheld,
without cause. The Servicer shall, within 30 days after such removal, appoint,
subject to the approval of the Certificate Insurer, which approval shall not be
unreasonably withheld, a successor trustee which satisfies the eligibility
requirements of Section 12.06 by written instrument, in duplicate, which
instrument shall be delivered to the Trustee so removed and to the successor
trustee. A copy of such instrument shall be delivered to the Certificateholders,
each Rating Agency and the Certificate Insurer by the successor trustee.
Any resignation or removal of the Trustee and appointment of a successor
trustee pursuant to any of the provisions of this Section shall become effective
upon acceptance of appointment by the successor trustee which satisfies the
eligibility requirements of Section 12.06 as provided in Section 12.08.
Section 12.08 Successor Trustee.
Any successor trustee appointed as provided in Section 12.07 shall execute,
acknowledge and deliver to the Servicer and to its predecessor trustee an
instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the predecessor trustee shall become effective and such successor
trustee, without any further act, deed or conveyance, shall become fully vested
with all the rights, powers, duties and obligations of its predecessor
hereunder, with the like effect as if originally named as trustee herein. The
predecessor trustee shall, to the extent necessary, deliver to the successor
trustee, or Custodian, if any, all Mortgage Files and related documents and
statements held by it hereunder, and the Servicer and the predecessor trustee
shall execute and deliver such instruments and do such other things as may
reasonably be required for more fully and certainly vesting and confirming in
the successor trustee all such rights, powers, duties and obligations.
No successor trustee shall accept appointment as provided in this Section
12.08 unless at the time of such acceptance such successor trustee shall be
eligible under the provisions of Section 12.06 and its appointment shall not
adversely affect the then current rating of the Certificates.
Upon acceptance of appointment by a successor trustee as provided in this
Section 12.08, the Servicer shall mail notice of the succession of such trustee
hereunder to all Holders of Certificates at their addresses as shown in the
Certificate Register. If the Servicer fails to
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mail such notice within 10 days after acceptance of appointment by the successor
trustee, the successor trustee shall cause such notice to be mailed at the
expense of the Servicer.
Section 12.09 Merger or Consolidation of Trustee.
Any Person into which the Trustee may be merged or converted or with which
it may be consolidated or any corporation or banking association resulting from
any merger, conversion or consolidation to which the Trustee shall be a party,
or any corporation or bank succeeding to all or substantially all of the
corporate trust business of the Trustee, shall be the successor of the Trustee
hereunder, provided such corporation or bank shall be eligible under the
provisions of Section 12.06, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.
Section 12.10 Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions hereof, at any time, for the purpose
of meeting any legal requirements of any jurisdiction in which any part of the
Trust Fund or property securing the same may at the time be located, the
Servicer and the Trustee acting jointly shall have the power and shall execute
and deliver all instruments to appoint one or more Persons approved by the
Trustee to act as co-trustee or co-trustees, jointly with the Trustee, or
separate trustee or separate trustees, of all or any part of the Trust Fund, and
to vest in such Person or Persons, in such capacity, such title to the Trust
Fund, or any part thereof, and, subject to the other provisions of this Section
12.10, such powers, duties, obligations, rights and trusts as the Servicer and
the Trustee may consider necessary or desirable. Any such co-trustee or separate
trustee shall be approved by the Certificate Insurer. If the Servicer shall not
have joined in such appointment within 15 days after the receipt by it of a
request so to do, or in case an Event of Default shall have occurred and be
continuing, the Trustee alone shall have the power to make such appointment. No
co-trustee or separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 12.06 and no notice to Holders
of Certificates of the appointment of co-trustee(s) or separate trustee(s) shall
be required under Section 12.08.
In the case of any appointment of a co-trustee or separate trustee pursuant
to this Section 12.10, all rights, powers, duties and obligations conferred or
imposed upon the Trustee shall be conferred or imposed upon and exercised or
performed by the Trustee and such separate trustee or co-trustee jointly, except
to the extent that under any law of any jurisdiction in which any particular act
or acts are to be performed (whether as Trustee hereunder or as successor to the
Servicer hereunder), the Trustee shall be incompetent or unqualified to perform
such act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Trust Fund or any portion thereof in any
such jurisdiction) shall be exercised and performed by such separate trustee or
co-trustee at the direction of the Trustee.
Any notice, request or other writing given to the Trustee shall be deemed
to have been given to each of the then separate trustees and co-trustees, as
effectively as if given to each
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of them. Every instrument appointing any separate trustee or co-trustee shall
refer to this Agreement and the conditions of this Article XII. Each separate
trustee and co-trustee, upon its acceptance of the trusts conferred, shall be
vested with the estates or property specified in its instrument of appointment,
either jointly with the Trustee or separately, as may be provided therein,
subject to all the provisions of this Agreement, specifically including every
provision of this Agreement relating to the conduct of, affecting the liability
of, or affording protection to, the Trustee. Every such instrument shall be
filed with the Trustee, and a copy thereof shall be forwarded by the Trustee to
the Certificate Insurer.
Any separate trustee or co-trustee may, at any time, constitute the
Trustee, its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. The Trustee shall not be responsible
for any action or inaction of any such separate trustee or co-trustee. If any
separate trustee or co-trustee shall die, become incapable of acting, resign or
be removed, all of its estates, properties, rights, remedies and trusts shall
vest in and be exercised by the Trustee, to the extent permitted by law, without
the appointment of a new or successor trustee.
Section 12.11 Tax Returns.
The Trustee, upon request, will promptly furnish the Servicer with all such
information as may reasonably be required in connection with the Servicer's
preparation of all Tax Returns of the Trust Fund REMIC or for the purpose of the
Servicer's responding to reasonable requests for information made by
Certificateholders in connection with tax matters and, within five (5) Business
Days of a request therefor, shall (i) sign on behalf of the Trust Fund REMIC any
Tax Return that the Trustee is required to sign pursuant to applicable federal,
state or local tax laws, and (ii) cause such Tax Return to be returned in a
timely manner to the Servicer for distribution to Certificateholders or filed
with a government authority if required.
Section 12.12 Appointment of Custodians.
The Trustee may, with the consent of the Servicer and the Certificate
Insurer, appoint one or more Custodians to hold all or a portion of the
Trustee's Mortgage Files as agent for the Trustee, by entering into a Custodial
Agreement. Subject to this Article XII, the Trustee agrees to comply with the
terms of each Custodial Agreement and to enforce the terms and provisions
thereof against the Custodian for the benefit of the Certificateholders and the
Certificate Insurer. Each Custodian shall be a depository institution subject to
supervision by federal or state authority and shall be qualified to do business
in the jurisdiction in which it holds any Trustee's Mortgage File. Each
Custodial Agreement may be amended only as provided in Section 14.02.
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Section 12.13 Trustee May Enforce Claims Without Possession of
Certificates.
All rights of action and claims under this Agreement or the Certificates
may be prosecuted and enforced by the Trustee without the possession of any of
the Certificates or the production thereof in any proceeding relating thereto,
any such proceeding instituted by the Trustee shall be brought in its own name
or in its capacity as Trustee. Any recovery of judgment shall, after provision
for the payment of the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Certificateholders in respect of which such judgment has been recovered.
Section 12.14 Suits for Enforcement.
In case an Event of Default or other default by the Servicer hereunder
shall occur and be continuing, the Trustee, in its discretion, but subject to
Section 10.01, may proceed to protect and enforce its rights and the rights of
the Certificateholders under this Agreement by a suit, action or proceeding in
equity or at law or otherwise, whether for the specific performance of any
covenant or agreement contained in this Agreement or in aid of the execution of
any power granted in this Agreement or for the enforcement of any other legal,
equitable or other remedy, as the Trustee, being advised by counsel, shall deem
most effectual to protect and enforce any of the rights of the Trustee or the
Certificateholders.
Section 12.15 Control of Remedies by Certificate Insurer and
Certificateholders.
Notwithstanding anything herein to the contrary, the Certificate Insurer or
the Majority Certificateholders, with the consent of the Certificate Insurer,
may direct the time, method and place of conducting any proceeding relating to
the Trust Fund or the Certificates or for any remedy available to the Trustee
with respect to the Certificates or exercising any trust or power conferred on
the Trustee with respect to the Certificates or the Trust Fund; provided, that:
(i) such direction shall not be unlawful or in conflict with this
Agreement;
(ii) the Trustee shall have been provided with indemnity satisfactory
to it;
(iii) the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction; and
(iv) that the Trustee need not take any action which it determines
might involve it in liability or may be unjustly prejudicial to the Holders
not so directing.
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ARTICLE XIII
REMIC PROVISIONS
Section 13.01 REMIC Administration.
(a) The Servicer shall make an election to treat the Trust Fund REMIC as a
REMIC under the Code and, if necessary, under applicable state law. Such
elections will be made on Form 1066 or other appropriate federal tax or
information return or any appropriate state return for the taxable year ending
on the last day of the calendar year in which the Certificates are issued. For
the purposes of the REMIC election in respect of the Trust Fund REMIC, the Class
A Certificates shall be designated as the "regular interests" and the Class R
Certificates shall be designated as the sole class of "residual interests" in
the Trust Fund REMIC. The Servicer shall not permit the creation of any
"interests" in the Trust Fund REMIC (within the meaning of Section 860G of the
Code) other the than interests represented by the Certificates.
(b) The Closing Date is hereby designated as the "Startup Day" of the Trust
Fund REMIC within the meaning of Section 860G(a)(9) of the Code.
(c) The Servicer shall hold the Tax Matters Person Residual Interest
Certificate representing a 0.01% Percentage Interest of the Class R Certificates
and is designated as the Tax Matters Person of the Trust Fund REMIC, as provided
under Treasury regulations Section 1.860F-4(d) and temporary Treasury
regulations Section 301.6231(a)(7)-1T. The Servicer, as Tax Matters Person,
shall (i) act on behalf of the Trust Fund REMIC, in relation to any tax matter
or controversy involving such REMIC and (ii) represent the Trust Fund REMIC in
any administrative or judicial proceeding relating to an examination or audit by
any governmental taxing authority with respect thereto. To the extent authorized
under the Code and the regulations promulgated thereunder, each Holder of a
Class R Certificate hereby irrevocably appoints and authorizes the Servicer to
be its attorney-in-fact for purposes of signing any Tax Returns required to be
filed on behalf of the Trust Fund REMIC. The legal expenses and costs of any
such action described in this subsection and any liability resulting therefrom
shall constitute Servicing Advances and the Servicer shall be entitled to
reimbursement therefor unless such legal expenses and costs are incurred by
reason of the Servicer's willful misfeasance, bad faith or gross negligence.
(d) The Servicer shall prepare or cause to be prepared all of the Tax
Returns in respect of the Trust Fund REMIC created hereunder and deliver such
Tax Returns to the Trustee for signing and the Trustee shall sign and promptly
return to the Servicer for filing such Tax Returns in order that the Servicer
may file such Tax Returns in a timely manner. The expenses of preparing and
filing such returns shall be borne by the Servicer without any right of
reimbursement therefor.
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(e) The Servicer shall perform on behalf of the Trust Fund all reporting
and other tax compliance duties that are the responsibility of the Trust Fund
under the Code, REMIC Provisions or other compliance guidance issued by the
Internal Revenue Service or any state or local taxing authority. Among its other
duties, as required by the Code, the REMIC Provisions or other such compliance
guidance, the Servicer shall provide (i) to any Transferor of a Class R
Certificate such information as is necessary for the application of any tax
relating to the transfer of a Class R Certificate to any Person who is not a
Permitted Transferee, (ii) to Certificateholders such information or reports as
are required by the Code or the REMIC Provisions including reports relating to
interest, original issue discount and market discount or premium (using the
Prepayment Assumption) and (iii) to the Internal Revenue Service the name,
title, address and telephone number of the person who will serve as the
representative of the Trust Fund.
(f) To the extent that the affairs of the Trust Fund are within its control
and the scope of its specific responsibilities under this Agreement, the
Servicer shall take such action and shall cause the Trust Fund REMIC created
under this Agreement to take such action as shall be reasonably necessary to
create or maintain the status thereof as a REMIC under the REMIC Provisions (and
the Trustee shall assist it, to the extent reasonably requested by it). The
Servicer shall not knowingly or intentionally take any action, cause the Trust
Fund REMIC to take any action or fail to take (or fail to cause to be taken) any
action that, under the REMIC Provisions, if taken or not taken, as the case may
be, could (i) endanger the status of the Trust Fund REMIC as a REMIC or (ii)
result in the imposition of a tax upon the Trust Fund REMIC (including but not
limited to the tax on prohibited transactions as defined in Section 860F(a)(2)
of the Code and the tax on contributions to a REMIC set forth in Section 860G(d)
of the Code) (either such event, an "Adverse REMIC Event") unless the Servicer
has received an Opinion of Counsel to the effect that the contemplated action
will not, with respect to the Trust Fund REMIC created hereunder, endanger such
status or result in the imposition of such a tax. If the Servicer has delivered
to the Trustee an Opinion of Counsel indicating that an action or omission of
the Trustee not otherwise required hereby may result in an Adverse REMIC Event,
the Trustee shall not take such action, or omit taking such action, as the case
may be. In addition, prior to taking any action with respect to the Trust Fund
REMIC or its assets, or causing the Trust Fund REMIC to take any action, which
is not expressly permitted under the terms of this Agreement, the Trustee shall
consult with the Servicer or its designee with respect to whether such action
may cause an Adverse REMIC Event and the Trustee shall not take any such action
or cause the Trust Fund REMIC to take any such action as to which the Servicer
has advised it in writing that an Adverse REMIC Event may occur. If the Trustee
so consults with the Servicer and the Servicer fails to respond within three
Business Days, the Trustee may take such action, provided that such action would
not otherwise constitute a breach of this Agreement. The Servicer may consult
with counsel as to the rendering of such written advice, and the cost of such
consultation and the production of any Opinions of Counsel, or written advice,
shall be borne by the party seeking to take the action not otherwise permitted
by this Agreement; provided, however that in no event shall the Trustee be
liable or responsible for such costs. The Trustee may conclusively presume that
any action taken or omitted at the written direction or request of the Servicer
will not result in an Adverse REMIC Event, and the Trustee shall not
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be liable or responsible for any Adverse REMIC Event arising out of or resulting
from any such action or omission.
(g) In the event that any tax is imposed on "prohibited transactions" of
the Trust Fund REMIC created hereunder as defined in Section 860F(a)(2) of the
Code, on "net income from foreclosure property" of the Trust Fund REMIC, as
defined in Section 860G(c) of the Code, on any contributions to the Trust Fund
REMIC after the Startup Day pursuant to Section 860G(d) of the Code, or any
other tax is imposed by the Code or any applicable provisions of state or local
tax laws, such tax shall be charged (i) against the party the actions of which
gave rise to such taxes and (ii) otherwise against amounts on deposit in the
Certificate Account and shall be paid by withdrawal therefrom.
(h) On or before April 15 of each calendar year, commencing April 15, 1998,
the Servicer shall deliver to the Trustee a Certificate from a Responsible
Officer of the Servicer stating the Servicer's compliance with this Article
XIII.
(i) The Trustee and the Servicer shall, for federal income tax purposes,
maintain books and records with respect to the Trust Fund REMIC on a calendar
year and on an accrual basis, to the extent such books and records are
maintained pursuant to this Agreement.
(j) After the 90-day period commencing on the Startup Day, the Servicer
shall not accept any contributions of assets to the Trust Fund REMIC, unless it
shall have received an Opinion of Counsel to the effect that the inclusion of
such assets in the Trust Fund will not cause the Trust Fund REMIC to fail to
qualify as a REMIC at any time that any Certificates are outstanding or subject
the Trust Fund REMIC to any tax under the REMIC Provisions or other applicable
provisions of federal, state and local law or ordinances.
(k) Neither the Servicer nor the Trustee shall enter into any arrangement
by which the Trust Fund REMIC will receive a fee or other compensation for
services nor permit the Trust Fund REMIC to receive any income from assets other
than "qualified mortgages" as defined in Section 860G(a)(3) of the Code or
"permitted investments" as defined in Section 860G(a)(5) of the Code.
(l) Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
regulations, the "latest possible maturity date" of the Class A Certificates and
the date by which the Class A Principal Balance would be reduced to zero is
March 25, 2027.
(m) Upon any termination of, or appointment of any successor to, the
Servicer hereunder, the Servicer shall promptly, upon the request of the
Trustee, transfer all of the related Tax Matters Person Residual Interest
Certificates to the successor Servicer. If a successor Servicer has not been
appointed by the Trustee, the Servicer shall promptly, upon the request of the
Trustee, transfer all of the related Tax Matters Person Residual Interest
Certificates to the Depositor who shall serve as the related Tax Matters Person
until such time as the Trustee appoints a successor Servicer. Any entity
appointed by the Trustee as successor
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Servicer shall agree to hold the related Tax Matters Person Residual Interest
Certificates as a condition to its appointment as Servicer.
(n) All expenses incurred by the Servicer in performing its duties under
this Article XIII (other than as provided in Section 13.01(d) and expenses for
salaries of its own employees and overhead) shall constitute Servicing Advances
under this Agreement.
Section 13.02 Prohibited Transactions and Activities.
Neither the Depositor, the Trustee nor the Servicer shall sell, dispose of
or substitute for any of the Mortgage Loans (except in connection with (i) the
foreclosure of a Mortgage Loan, including but not limited to, the acquisition or
sale of a Mortgaged Property acquired by deed in lieu of foreclosure, (ii) the
bankruptcy of the Trust Fund, (iii) the termination of the Trust Fund REMIC
pursuant to Article XI or (iv) a purchase of Mortgage Loans pursuant to Articles
II or III), nor acquire any assets for the Trust Fund, nor sell or dispose of
any investments in the Certificate Account for gain, nor accept any
contributions to the Trust Fund REMIC after the Closing Date unless it has
received an Opinion of Counsel (at the expense of the party seeking to cause
such sale, disposition, substitution or acquisition) indicating that such sale,
disposition, substitution or acquisition will not (a) affect adversely the
status of the Trust Fund REMIC as a REMIC or (b) cause the Trust Fund REMIC to
be subject to a tax on "prohibited transactions", "contributions" or, except as
otherwise provided for in this Agreement, "net income from foreclosure property"
pursuant to the REMIC Provisions.
Section 13.03 Servicer and Trustee Indemnification.
(a) The Trustee agrees to indemnify the Trust Fund, the Depositor and the
Servicer for any taxes and costs including, without limitation, any reasonable
attorneys' fees imposed on or incurred by the Trust Fund, the Depositor or the
Servicer, as a result of a breach of the Trustee's covenants set forth in
Article XII or this Article XIII.
(b) The Servicer agrees to indemnify the Trust Fund, the Depositor and the
Trustee for any taxes and costs including, without limitation, any reasonable
attorneys' fees imposed on or incurred by the Trust Fund, the Depositor or the
Trustee, as a result of a breach of the Servicer's covenants set forth in
Articles V, VII, IX or this Article XIII with respect to compliance with the
REMIC Provisions, including without limitation, any penalties arising from the
Trustee's execution of Tax Returns prepared by the Servicer that contain
material errors or omissions.
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ARTICLE XIV
MISCELLANEOUS PROVISIONS
Section 14.01 Acts of Certificateholders.
Except as otherwise specifically provided herein, whenever
Certificateholder action, consent or approval is required under this Agreement,
such action, consent or approval shall be deemed to have been taken or given on
behalf of, and shall be binding upon, all Certificateholders if the Majority
Certificateholders agree to take such action or give such consent or approval.
Section 14.02 Amendment.
(a) This Agreement may be amended from time to time by the Depositor, the
Trustee and the Servicer by written agreement upon the prior written consent of
the Certificate Insurer, without notice to or consent of the Certificateholders,
to cure any error or ambiguity, to correct or supplement any provisions herein
which may be inconsistent with any other provisions hereof, to evidence any
succession to the Servicer, to comply with any changes in the Code, to amend
this Agreement to modify, eliminate or add to any of its provisions to such
extent as shall be necessary or appropriate to maintain the qualification of the
Trust Fund REMIC as a REMIC under the Code or to make any other provisions with
respect to matters or questions arising under this Agreement which shall not be
inconsistent with the provisions of this Agreement, or any Custodial Agreement;
provided, however, that such action shall not, as evidenced by an Opinion of
Counsel, at the expense of the party requesting the change, delivered to the
Trustee, adversely affect in any material respect the interests of any
Certificateholder; and provided further, that no such amendment shall reduce in
any manner the amount of, or delay the timing of, payments received on Mortgage
Loans which are required to be distributed on any Certificate without the
consent of the Holder of such Certificate, or change the rights or obligations
of any other party hereto without the consent of such party. The Trustee shall
give prompt written notice to the Rating Agencies of any amendment made pursuant
to this Section 14.02.
(b) This Agreement may be amended from time to time by the Depositor, the
Trustee and the Servicer and with the consent of the Certificate Insurer and the
Majority Certificateholders; provided, however, that no such amendment shall be
made unless the Trustee receives an Opinion of Counsel, at the expense of the
party requesting the change, that such change will not adversely affect the
status of the Trust Fund REMIC as a REMIC or cause a tax to be imposed on the
Trust Fund REMIC, and provided further, that no such amendment shall reduce in
any manner the amount of, or delay the timing of, payments received on Mortgage
Loans which are required to be distributed on any Certificate without the
consent of the Holder of such Certificate or reduce the percentage for each
Class the Holders of which are required to consent to any such amendment without
the consent of the Holders of 100% of each Class of Certificates affected
thereby.
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(c) It shall not be necessary for the consent of Holders under this Section
to approve the particular form of any proposed amendment, but it shall be
sufficient if such consent shall approve the substance thereof. The manner of
obtaining such consents and of evidencing the authorization of the execution
thereof by Certificateholders shall be subject to such reasonable requirements
as the Trustee may prescribe.
Prior to the execution of any amendment to this Agreement, the Trustee
shall be entitled to receive and rely upon an Opinion of Counsel stating that
the execution of such amendment is authorized or permitted by this Agreement.
The Trustee may, but shall not be obligated to, enter into any such amendment
which affects the Trustee's own rights, duties or immunities under this
Agreement.
In connection with the solicitation of consents of Certificateholders
pursuant to this Section 14.02, upon written request of the Depositor, the
Trustee shall provide written copies of the current Certificate Register to the
Depositor.
Section 14.03 Recordation of Agreement.
To the extent permitted by applicable law, this Agreement, or a memorandum
thereof if permitted under applicable law, is subject to recordation in all
appropriate public offices for real property records in all of the counties or
other comparable jurisdictions in which any or all of the properties subject to
the Mortgages are situated, and in any other appropriate public recording office
or elsewhere, such recordation to be effected by the Servicer at the
Certificateholders' expense on direction of the Certificate Insurer or the
Majority Certificateholders, but only when accompanied by an Opinion of Counsel
to the effect that such recordation materially and beneficially affects the
interests of the Certificateholders or is necessary for the administration or
servicing of the Mortgage Loans.
Section 14.04 Duration of Agreement.
This Agreement shall continue in existence and effect until terminated as
herein provided.
Section 14.05 Governing Law.
This Agreement shall be construed in accordance with the laws of the State
of New York and the obligations, rights and remedies of the parties hereunder
shall be determined in accordance with such laws, without giving effect to
principles of conflicts of law.
Section 14.06 Notices.
(a) All demands, notices and communications hereunder shall be in writing
and shall be deemed to have been duly given if personally delivered at or mailed
by overnight mail, certified mail or registered mail, postage prepaid, to (i) in
the case of Superior Bank, as
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Depositor, One Lincoln Centre, Oakbrook Terrace, Illinois 60181, Attention:
William C. Bracken, or such other addresses as may hereafter be furnished to the
Certificateholders in writing by the Depositor, (ii) in the case of Lee
Servicing Company, a division of Superior Bank FSB, as Servicer, One Lincoln
Centre, Oakbrook Terrace, Illinois 60181, Attention: William C. Bracken, or such
other addresses as may hereafter be furnished to the Certificateholders in
writing by the Servicer, (iii) in the case of the Trustee, LaSalle National
Bank, 135 S. LaSalle Street, Suite 1740, Chicago, Illinois 60674-4107,
Attention: Asset-Backed Securities Trust Services Department -- AFC 1997-1, (iv)
in the case of the Certificateholders, as set forth in the Certificate Register,
(v) in the case of Moody's, 99 Church Street, New York, New York 10007
Attention: Home Equity Loan Monitoring Group, (vi) in the case of S&P, 26
Broadway, 15th Floor, New York, New York 10004 Attention: Residential Mortgage
Surveillance Group, and (vii) in the case of the Certificate Insurer, Financial
Guaranty Insurance Company, 115 Broadway, New York, New York 10006, Attention:
Group Leader -- Research and Risk Management. Any such notices shall be deemed
to be effective with respect to any party hereto upon the receipt of such notice
by such party, except that notices to the Certificateholders shall be effective
upon mailing or personal delivery.
(b) The Trustee shall use its best efforts to promptly provide notice to
each Rating Agency with respect to each of the following of which it has actual
knowledge:
1. Any material change or amendment to this Agreement;
2. The occurrence of any Event of Default that has not been cured;
3. The resignation or termination of the Servicer or the Trustee and the
appointment of any successor;
4. The repurchase or substitution of Mortgage Loans; and
5. The final payment to Certificateholders.
In addition, the Trustee shall promptly furnish to each Rating Agency
copies of the following:
1. Each report to Certificateholders described in Section 6.08;
2. Each annual statement as to compliance described in Section 7.04; and
3. Each annual independent public accountants' servicing report described
in Section 7.05.
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Section 14.07 Severability of Provisions.
If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be held invalid for any reason whatsoever, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other covenants,
agreements, provisions or terms of this Agreement.
Section 14.08 No Partnership.
Nothing herein contained shall be deemed or construed to create a
co-partnership or joint venture between the parties hereto and the services of
the Servicer shall be rendered as an independent contractor and not as agent for
the Certificateholders.
Section 14.09 Counterparts.
This Agreement may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same agreement.
Section 14.10 Successors and Assigns.
This Agreement shall inure to the benefit of and be binding upon the
Servicer, the Depositor, the Trustee and the Certificateholders and their
respective successors and assigns.
Section 14.11 Headings.
The headings of the various sections of this Agreement have been inserted
for convenience of reference only and shall not be deemed to be part of this
Agreement.
Section 14.12 The Certificate Insurer.
The Certificate Insurer shall be a third-party beneficiary of this
Agreement, entitled to enforce any provisions hereof as if a party hereto. Any
right conferred to the Certificate Insurer with respect to a Sub-Pool shall be
suspended during any period in which the Certificate Insurer is in default in
its payment obligations under the Certificate Insurance Policy. At such time as
the Certificates with respect to a Sub-Pool are no longer outstanding hereunder,
and no amounts owed to the Certificate Insurer hereunder with respect to such
Sub-Pool remain unpaid, the Certificate Insurer's rights hereunder with respect
to such Sub-Pool shall terminate.
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Section 14.13 Paying Agent.
The Trustee hereby accepts appointment as Paying Agent. The Trustee may,
subject to the eligibility requirements for the Trustee set forth in Section
12.06, other than Section 12.06(iv), appoint one or more other Paying Agents or
successor Paying Agents.
Each Paying Agent, immediately upon such appointment, shall signify its
acceptance of the duties and obligations imposed upon it by this Agreement by
written instrument of acceptance deposited with the Trustee with a copy being
sent to the Certificate Insurer.
Each such Paying Agent other than the Trustee shall execute and deliver to
the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of Section 6.06, that such Paying Agent will:
(1) allocate all sums received for distribution to the Holders of
Certificates of each Class for which it is acting as Paying Agent on
each Remittance Date among such Holders in the proportion specified by
the Trustee; and
(2) hold all sums held by it for the distribution of amounts due with
respect to the Certificates in trust for the benefit of the Holders
entitled thereto until such sums shall be paid to such Holders or
otherwise disposed of as herein provided and pay such sums to such
Persons as herein provided.
Any Paying Agent other than the Trustee may at any time resign and be
discharged of the duties and obligations created by this Agreement by giving at
least sixty (60) days written notice to the Trustee. Any such Paying Agent may
be removed at any time by an instrument filed with such Paying Agent signed by
the Trustee.
In the event of the resignation or removal of any Paying Agent other than
the Trustee such Paying Agent shall pay over, assign and deliver any moneys held
by it as Paying Agent to its successor, or if there be no successor, to the
Trustee.
Upon the appointment, removal or notice of resignation of any Paying Agent,
the Trustee shall notify the Certificate Insurer and the Certificateholders by
mailing notice thereof to their addresses appearing on the Certificate Register.
Section 14.14 Actions of Certificateholders.
(a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Agreement to be given or taken by
Certificateholders may be embodied in and evidenced by one or more instruments
of substantially similar tenor signed by such Certificateholders in person or by
agent duly appointed in writing; and except as herein otherwise expressly
provided, such action shall become effective when such instrument or
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instruments are delivered to the Trustee and, where required, to the Depositor
or the Servicer. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Agreement
and conclusive in favor of the Trustee, the Depositor and the Servicer, if made
in the manner provided in this Section.
(b) The fact and date of the execution by any Certificateholder of any such
instrument or writing may be proved in any reasonable manner which the Trustee
deems sufficient.
(c) Any request, demand, authorization, direction, notice, consent, waiver
or other act by a Certificateholder shall bind every Holder of every Certificate
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof, in respect of anything done, or omitted to be done, by the
Trustee, the Depositor or either Servicer in reliance thereon, whether or not
notation of such action is made upon such Certificate.
(d) The Trustee may require additional proof of any matter referred to in
this Section 14.14 as it shall deem necessary.
Section 14.15 Grant of Security Interest.
It is the express intent of the parties hereto that the conveyance of the
Mortgage Loans and all other assets constituting the Trust Fund, by the
Depositor to the Trustee be, and be construed as, a sale of the Mortgage Loans
and such other assets constituting the Trust Fund by the Depositor and not a
pledge by the Depositor to secure a debt or other obligation of the Depositor.
However, in the event that, notwithstanding the aforementioned intent of the
parties, the Mortgage Loans and other assets constituting the Trust Fund are
held to be property of the Depositor, then it is the express intent of the
parties that such conveyance be deemed as a pledge of the Mortgage Loans and all
other assets constituting the Trust Fund to the Trustee to secure a debt or
other obligation of the Depositor and this Agreement shall be deemed to be a
security agreement within the meaning of the Uniform Commercial Code and the
conveyances provided for in Section 2.01 hereof shall be deemed a grant by the
Depositor to the Trustee of a security interest in all of the Depositor's right,
title and interest in and to the Mortgage Loans and all other assets
constituting the Trust Fund. Accordingly, the Depositor hereby grants to the
Trustee a security interest in the Mortgage Loans and all other assets
constituting the Trust Fund for the purpose of securing to the Trustee the
performance by the Depositor of the obligations under this Agreement.
Notwithstanding the foregoing, the parties hereto intend the conveyances
pursuant to Section 2.01 to be a true, absolute and unconditional sale of the
Mortgage Loans and all other assets constituting the Trust Fund by the Depositor
to the Trustee. The Depositor and the Trustee (at the written direction and
expense of the Depositor) shall take such actions as may be necessary to ensure
that if this Agreement were deemed to create a security interest, such security
interest would be deemed to be a perfected security interest of first priority
under applicable law and will be maintained as such for the term of this
Agreement. Without limiting the generality of the foregoing, the Servicer shall
file, or shall cause to be filed, all filings necessary to maintain the
effectiveness of any original filings necessary under the Uniform
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Commercial Code to perfect the Trustee's security interest in or lien on the
Mortgage Loans, including, without limitation, (x) continuation statements and
(y) such other statements as may be occasioned by (i) any change of name of the
Depositor or Trustee, (ii) any change of location of the place of business or
the chief executive office of the Depositor or (iii) any transfer of any
interest of the Depositor in any Mortgage Loan.
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IN WITNESS WHEREOF, the Servicer, the Trustee and the Depositor have caused
their names to be signed hereto by their respective officers thereunto duly
authorized as of the day and year first above written.
SUPERIOR BANK FSB, in all of its capacities as
contemplated hereby
By: /s/ WILLIAM C. BRACKEN
-----------------------------------------
Name: William C. Bracken
Title: Chief Financial Officer
Senior Vice President
LEE SERVICING COMPANY, a division of Superior
Bank FSB, as Servicer
By: /s/ WILLIAM C. BRACKEN
----------------------------------------
Name: William C. Bracken
Title: Chief Financial Officer
Senior Vice President
LASALLE NATIONAL BANK, as Trustee
By: /s/ SHASHANK MISHRA
----------------------------------------
Name: Shashank Mishra
Title: Vice President
<PAGE>
State of )
) ss.:
County of )
On the 20th day of March, 1997 before me, a Notary Public in and for the
State of Illinois, personally appeared William C. Bracken known to me to be a
Senior Vice President of Superior Bank FSB, that executed the within instrument
and also known to me to be the person who executed it on behalf of said
corporation, and acknowledged to me that such corporation executed the within
instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.
----------------------------------
[SEAL] Notary Public
My Commission expires ____________
<PAGE>
State of )
) ss.:
County of )
On the 20th day of March, 1997 before me, a Notary Public in and for the
State of Illinois, personally appeared William C. Bracken known to me to be a
Senior Vice President of Lee Servicing Company, a division of Superior Bank FSB,
the corporation that executed the within instrument and also known to me to be
the person who executed it on behalf of said corporation, and acknowledged to me
that such corporation executed the within instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.
----------------------------------
[SEAL] Notary Public
My Commission expires ____________
<PAGE>
State of )
) ss.:
County of )
On the 20th day of March, 1997 before me, a Notary Public in and for the
State of Illinois, personally appeared Shashank Mishra known to me to be Vice
President of LaSalle National Bank, the banking corporation that executed the
within instrument and also known to me to be the person who executed it on
behalf of said banking corporation, and acknowledged to me that such corporation
executed the within instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.
----------------------------------
[SEAL] Notary Public
My Commission expires ____________
<PAGE>
EXHIBIT A
CONTENTS OF MORTGAGE FILE
With respect to each Mortgage Loan, the Mortgage File shall include each of
the following items, all of which shall be available for inspection by the
Certificateholders, to the extent required by applicable laws:
1. The original Mortgage Note, showing a complete chain of endorsements
and endorsed by the last endorsee thereof "Pay to the order of
_________ [or LaSalle National Bank, as Trustee under the Pooling and
Servicing Agreement, dated as of March 1, 1997, Series 1997-1] without
recourse" and signed, by facsimile or manual signature, by such last
endorsee.
2. Either: (i) the original Mortgage, with evidence of recording thereon,
(ii) a copy of the Mortgage certified as a true copy by a Responsible
Officer of the Depositor or by the closing attorney, or by an officer
of the title insurer or agent of the title insurer which issued the
related title insurance policy, or commitment therefor, if the
original has been transmitted for recording until such time as the
original is returned by the public recording office or (iii) a copy of
the Mortgage certified by the public recording office in those
instances where the original recorded Mortgage has been lost.
3. Either: (a) (1) the original Assignment of Mortgage from the last
assignee of the related Mortgage assigned to the Trustee, with
evidence of recording thereon, or (2) an original assignment of
mortgage from the last assignee of the related Mortgage assigned in
blank, or (b) if an original Assignment of Mortgage has not yet been
provided in accordance with clause (a), an Assignment of Mortgage to
the Trustee, certified by an appropriate officer or approved signatory
of the Depositor or the closing attorney or any officer of the title
insurer that issued the related title insurance policy, or commitment
therefor, or its duly authorized agent, as being a true and complete
copy of the original of such Assignment of Mortgage to the Trustee
submitted for recording (provided, however, that an appropriate
officer or approved signatory of the Depositor may complete one or
more blanket certificates attaching copies of one or more Assignments
of Mortgage to the Trustee relating thereto) or (c) a copy of such
original Assignment of Mortgage to the Trustee, with evidence of
recording thereon, certified to be true and complete by the Depositor
or the appropriate public recording office, in those instances where
such original Assignment of Mortgage has been recorded but
subsequently lost; any such Assignment of Mortgage may be made by
blanket assignments for Mortgage Loans secured by the Mortgaged
Properties located in the same county, if permitted by applicable law.
<PAGE>
4. The original policy of title insurance or a true copy thereof or, if
such policy has not yet been delivered by the insurer, the commitment
or binder to issue same.
5. Originals of all assumption and modification agreements, if any, or a
copy certified as a true copy by a Responsible Officer of the
Depositor if the original has been transmitted for recording until
such time as the original is returned by the public recording office.
6. Either: (i) originals of all intervening assignments, if any, showing
a complete chain of title from the originator to the last assignee of
the related Mortgage, including any recorded warehousing assignments,
with evidence of recording thereon, or, (ii) if the original
intervening assignments have not yet been returned from the recording
office, a copy of the originals of such intervening assignments
together with a certificate of a Responsible Officer of the Depositor
or the closing attorney or an officer of the title insurer which
issued the related title insurance policy, or commitment therefor, or
its duly authorized agent certifying that the copy is a true copy of
the original of such intervening assignments or (iii) a copy of the
intervening assignment certified by the public recording office in
those instances where the original recorded intervening assignment has
been lost.
7. Proof of hazard insurance in the form of the declaration page of a
hazard insurance policy together with a direction to the insurer or
agent to add the name of the mortgagee, its successors and assigns, as
mortgagee/loss payee, or hazard insurance policy endorsement that
names the Depositor, its successors and assigns, as a mortgagee/loss
payee, and, if such endorsement does not show the amount insured by
the related hazard insurance policy, some evidence of such amount
except with respect to those Mortgage Loans purchased by the Depositor
from an investor as to which such proof of hazard insurance shall be
delivered not later than 180 days after the Closing Date and, if
required by law, flood insurance policy, with extended coverage of the
hazard insurance policy.
8. With respect to each Sub-Pool 1 Multifamily Loan and Sub-Pool 1 Mixed
Use Loan, (i) if such item is a document separate from the Mortgage
either (a) an original copy of the related Assignment of Leases, if
any (with recording information indicated thereon), or (b) if the
original of such Assignment of Leases has not yet been returned from
the filing office, a copy of such original, certified by an
appropriate officer or approved signatory of the Depositor or the
closing attorney or any officer of the title insurer that issued the
related title insurance policy, or commitment therefor, or its duly
authorized agent, as being a true and complete copy of the original of
such Assignment of Leases submitted for filing; (ii) an original
assignment of any related Assignment of Leases, if any (if such
document is a document separate from the Mortgage and not incorporated
in the Assignment of Mortgage), in blank and in recordable form; (iii)
if such item is a document separate from the Mortgage either (A) an
original copy of all
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<PAGE>
intervening assignments of Assignment of Leases, if any (with
recording information indicated thereon), or (B) if the original of
such intervening assignments of Assignment of Leases has not yet been
returned from the recording office, a copy of such original, certified
by an appropriate officer or approved signatory of the Depositor or
the closing attorney or any officer of the title insurer that issued
the related title insurance policy, or commitment therefor, or its
duly authorized agent, as being a true and complete copy of the
original of such intervening assignment of Assignment of Leases
submitted for recording; (iv) either (a) a copy of the UCC-1 financing
statement and any related continuation statements, if any, each
showing the Mortgagor as debtor and mortgagee as secured party and
each with evidence of filing thereon, or (b) if the copy of the UCC-1
financing statement has not yet been returned from the filing office,
a copy of such UCC-1 financing statement, certified by an appropriate
officer or approved signatory of the Depositor or the closing attorney
or any officer of the title insurer that issued the related title
insurance policy, or commitment therefor, or its duly authorized
agent, as being a true and complete copy of the original of such UCC-1
financing statement submitted for filing; (v) an original executed
form UCC-2 or UCC-3 financing statement, in form suitable for filing,
disclosing the assignment in blank, of the security interest in the
personal property constituting security for repayment of the Mortgage
Loan; and (vi) either (A) an original copy of all intervening
assignments of UCC-3 financing statements, if any (with evidence of
filing thereon), or (B) if the original of such intervening
assignments of UCC-3 financing statements has not yet been returned
from the filing office, a copy of such original, certified by an
appropriate officer or approved signatory of the Depositor or the
closing attorney or any officer of the title insurer that issued the
related title insurance policy, or commitment therefor, or its duly
authorized agent, as being a true and complete copy of the original of
such intervening assignments of UCC-3 financing statements submitted
for recording. If in connection with any Mortgage Loan the Depositor
cannot deliver any such financing statement(s) with evidence of filing
thereon because such financing statement(s) has not yet been returned
by the public filing office where such financing statement(s) has been
submitted for filing, then the Depositor shall deliver or cause to be
delivered a photocopy of such financing statement(s) (certified by the
Depositor to be a true and complete copy) together with an officers'
certificate stating that such financing statement(s) has been
dispatched to the appropriate public filing office for filing.
9. Mortgage Loan closing statement and any other truth-in-lending or real
estate settlement procedure forms required by law.
10. Residential loan application.
11. Verification of employment and income, and tax returns, if any.
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12. Credit report on the mortgagor.
13. The full appraisal made in connection with the origination of the
related Mortgage Loan with photographs of the subject property and of
comparable properties, constituting evidence sufficient to indicate
that the Mortgaged Property relates to a Residential Dwelling.
14. With respect to Sub-Pool 1, to the extent that such Sub-Pool 1
Mortgage Loan is secured by a second priority lien, a verification of
the first mortgage.
15. All other papers and records developed or originated by the Depositor
or others, required to document the Mortgage Loan or to service the
Mortgage Loan.
-4-
<PAGE>
EXHIBIT B-1
[FORM OF CLASS A CERTIFICATE]
[DTC LEGEND]
AFC Mortgage Loan Asset Backed Certificate
Series 1997-1
Class A
No. _______
Date of Pooling and
Servicing Agreement:
March 1, 1997
Servicer:
Lee Servicing Company, a
division of Superior Bank
FSB
First Remittance Date:
April 25, 1997
Closing Date:
March 20, 1997
Class A
Pass-Through Rate:
Variable
CUSIP #:
Original Class A
Principal Balance:
$220,000,000
Original Dollar Amount as of the Closing
Date Represented by this Certificate:
$_____________________.
Percentage Interest of
this Certificate:
%
Original Pool Principal
Balance: $_____________
Original Pre-Funded Amount:
$________________
Latest Scheduled Maturity Date of the Class
A Certificates:
___________ 1, 20__
Trustee: LaSalle National Bank
This certifies that __________ is the registered owner of the percentage
interest (the "Percentage Interest") specified above in that certain beneficial
ownership interest evidenced by all the Class A Certificates of the above
referenced series (the "Class A Certificates") in a Trust Fund consisting
primarily of certain residential first and second mortgage loans (the "Mortgage
Loans") serviced by Lee Servicing Company, a division of Superior Bank FSB (the
"Servicer"). The Mortgage Loans were originated or acquired by Superior Bank FSB
(the "Depositor"). The Trust Fund will be created by the Depositor and the
Mortgage Loans will be serviced by the Servicer pursuant to the terms and
conditions of that certain Pooling and Servicing Agreement dated as of March 1,
1997 (the "Agreement") by and among the Servicer, the Depositor and LaSalle
National Bank, as trustee (the "Trustee"), certain of the pertinent provisions
of which
<PAGE>
are set forth herein. The Cut-off Date with respect to the Initial Mortgage
Loans is March 1, 1997. To the extent not defined herein, the capitalized terms
used herein have the meanings assigned in the Agreement. This Certificate is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which terms and provisions the Holder of this Certificate by
virtue of the acceptance hereof assents and by which such Holder is bound.
On each Remittance Date, commencing on April 25, 1997, the Trustee or
Paying Agent shall distribute to the Person in whose name this Certificate is
registered on the Business Day immediately preceding such Remittance Date (the
"Record Date"), an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount required to be distributed to
Holders of the Class A Certificates on such Remittance Date pursuant to Section
6.06 of the Agreement.
Distributions on this Certificate will be made by the Trustee or Paying
Agent by wire transfer of immediately available funds to the account of the
Person entitled thereto as shall appear on the Certificate Register without the
presentation or surrender of this Certificate or the making of any notation
thereon, at a bank or other entity having appropriate facilities therefor, if
such Person shall own of record (i) any Class R Certificate or (ii) any Class A
Certificate with an initial Class A Principal Balance in excess of $5,000,000,
and shall have so notified the Trustee in writing at least five Business Days
prior to the related Remittance Date, or otherwise by check mailed to the
address of such Person appearing in the Certificate Register. Notwithstanding
the above, the final distribution on this Certificate will be made after due
notice by the Servicer of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency
maintained for that purpose by the Certificate Registrar in Chicago, Illinois.
-2-
<PAGE>
IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed under its official seal.
LASALLE NATIONAL BANK,
as Trustee
By: _______________________________________
Authorized Officer
Dated:________________________
(Seal)
CERTIFICATE OF AUTHENTICATION
This is a Class A Certificate referred to in the within-mentioned
Agreement.
LASALLE NATIONAL BANK,
as Certificate Registrar
By: _______________________________________
Authorized Officer
-3-
<PAGE>
EXHIBIT B-2
[FORM OF CLASS R CERTIFICATE]
THIS CERTIFICATE HAS NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAW OF ANY STATE. ANY
RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE WITHOUT SUCH
REGISTRATION OR QUALIFICATION MAY BE MADE ONLY IN A TRANSACTION WHICH DOES NOT
REQUIRE SUCH REGISTRATION OR QUALIFICATION AND IN ACCORDANCE WITH THE PROVISIONS
OF SECTION 4.02 OF THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.
SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A "RESIDUAL
INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE
DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED (THE "CODE").
ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CLASS R CERTIFICATE MAY BE
MADE ONLY IF (1) THE PROPOSED TRANSFEREE PROVIDES TO THE TRUSTEE AN AFFIDAVIT
STATING AMONG OTHER THINGS THAT SUCH TRANSFEREE IS A PERMITTED TRANSFEREE (AS
DEFINED IN THE POOLING AND SERVICING AGREEMENT) OR AN AGENT OF A PERMITTED
TRANSFEREE AND (2) THE PROPOSED TRANSFEROR PROVIDES TO THE TRUSTEE A CERTIFICATE
TO THE EFFECT THAT SUCH TRANSFEROR HAS NO KNOWLEDGE THAT THE PROPOSED TRANSFEREE
IS NOT A PERMITTED TRANSFEREE AND NO PURPOSE OF SUCH PROPOSED TRANSFER IS TO
IMPEDE THE ASSESSMENT OR COLLECTION OF TAX. NOTWITHSTANDING THE REGISTRATION IN
THE CERTIFICATE REGISTER OF ANY TRANSFER OF THIS CLASS R CERTIFICATE TO A PERSON
OTHER THAN A PERMITTED TRANSFEREE OR AN AGENT OF A PERMITTED TRANSFEREE SUCH
REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND
SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE
HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
CERTIFICATE.
NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO A NON-UNITED STATES PERSON AS
SUCH TERM IS DEFINED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.
NO TRANSFER OF THIS CERTIFICATE OR ANY INTEREST HEREIN SHALL BE MADE TO ANY
EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT, INCLUDING INDIVIDUAL
RETIREMENT ACCOUNTS AND ANNUITIES, KEOGH PLANS AND COLLECTIVE INVESTMENT FUNDS
AND SEPARATE ACCOUNTS IN WHICH SUCH PLANS, ACCOUNTS OR ARRANGEMENTS ARE INVESTED
THAT IS
-4-
<PAGE>
SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), OR THE INTERNAL REVENUE CODE OF 1986 (THE "CODE"), UNLESS THE
SERVICER AND THE TRUSTEE ARE PROVIDED WITH A CERTIFICATION AND AN OPINION OF
COUNSEL WHICH ESTABLISHES TO THE SATISFACTION OF THE SERVICER AND THE TRUSTEE
THAT SUCH TRANSFER WILL NOT RESULT IN A VIOLATION OF SECTION 406 OF ERISA OR
SECTION 4975 OF THE CODE OR CAUSE THE SERVICER OR THE TRUSTEE TO BE DEEMED A
FIDUCIARY OF SUCH PLAN OR RESULT IN THE IMPOSITION OF AN EXCISE TAX UNDER THE
CODE.
AFC Mortgage Loan Asset Backed Certificate
Series 1997-1 Percentage Interest of
Class R this Certificate:
No.____ ____%
Date of Pooling and Original Pool Principal Balance:
Servicing Agreement: $________________.
March 1, 1997
Original Pre-Funded Amount:
Servicer: $___________.
Lee Servicing Company, a
division of Superior Bank FSB Trustee: LaSalle National Bank
First Remittance Date: Closing Date:
April 25, 1997 March 20, 1997
This certifies that is the registered owner of the percentage interest (the
"Percentage Interest") specified above in that certain beneficial ownership
interest evidenced by all the Class R Certificates of the above referenced
Series (the "Class R Certificates") in a Trust Fund consisting primarily of
certain residential first and second mortgage loans (the "Mortgage Loans")
serviced by Lee Servicing Company, a division of Superior Bank FSB (the
"Servicer"). The Mortgage Loans were originated or acquired by Superior Bank FSB
(the "Depositor"). The Trust Fund will be created by the Depositor and the
Mortgage Loans will be serviced by the Servicer pursuant to the terms and
conditions of that certain Pooling and Servicing Agreement dated as of March 1,
1997 (the "Agreement") by and among the Servicer, the Depositor and LaSalle
National Bank, as trustee (the "Trustee"), certain of the pertinent provisions
of which are set forth herein. The Cut-off Date with respect to the Initial
Mortgage Loans is March 1, 1997. To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement. This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.
-5-
<PAGE>
On each Remittance Date, commencing on April 25, 1997, the Trustee or a
Paying Agent shall distribute to the Person in whose name this Certificate is
registered on the last day of the month next preceding the month of such
distribution (the "Record Date"), an amount equal to the product of the
Percentage Interest evidenced by this Certificate and any amounts required to be
distributed to the Holders of the Class R Certificates on such Remittance Date
pursuant to the Agreement.
Distributions on this Certificate will be made by the Trustee or Paying
Agent by wire transfer of immediately available funds to the account of the
Person entitled thereto as shall appear on the Certificate Register without the
presentation or surrender of this Certificate or the making of any notation
thereon, at a bank or other entity having appropriate facilities therefor, if
such Person shall own of record (i) any Class R Certificate or (ii) any Class A
Certificate with an initial Class A Principal Balance in excess of $5,000,000,
and shall have so notified the Trustee in writing at least five Business Days
prior to the related Remittance Date, or otherwise by check mailed to the
address of such Person appearing in the Certificate Register. Notwithstanding
the above, the final distribution on this Certificate will be made after due
notice by the Servicer of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency
maintained for that purpose by the Certificate Registrar in Chicago, Illinois.
No transfer of a Class R Certificate or any interest therein shall be made
to any employee benefit plan or other retirement arrangement, including
individual retirement accounts and annuities, Keogh plans and collective
investment funds and separate accounts in which such plans, accounts or
arrangements are invested, that is subject to the Employment Retirement Income
Security Act of 1974, as amended ("ERISA"), or the Code (each, a "Plan"), unless
the prospective transferee of a Class R Certificate provides the Servicer and
the Trustee with a certification of facts and, at its own expense, an Opinion of
Counsel which establish to the satisfaction of the Servicer and the Trustee that
such transfer will not result in a violation of Section 406 of ERISA or Section
4975 of the Code or cause the Servicer or the Trustee to be deemed a fiduciary
of such Plan or result in the imposition of an excise tax under Section 4975 of
the Code.
As provided in the Agreement and subject to certain limitations therein set
forth, including, without limitation, execution and/or delivery by the proposed
transferor and/or transferee, as appropriate, the Resale Certification (Exhibit
D to the Agreement), and, if required by the Trustee, an opinion of counsel
relating to the exemption from registration under the 1933 Act pursuant to which
the proposed transfer is to be made, the Transfer Affidavit (Exhibit J to the
Agreement) and Transfer Certificate (Exhibit J-1 to the Agreement) described in
Section 4.02(c)(ii) of the Agreement, and, if the proposed transferee is a Plan,
the certification and opinion of counsel described on the front of this
Certificate, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies maintained by the Trustee in Chicago, Illinois, accompanied
by a written instrument of transfer in the form of Exhibit E to the Agreement,
or such other endorsement or written instrument of transfer as is satisfactory
to the Trustee, duly
-6-
<PAGE>
executed by the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates of authorized denominations
of a like Class evidencing the same aggregate undivided Percentage Interest will
be issued to the designated transferee or transferees.
-7-
<PAGE>
IN WITNESS WHEREOF, the Trustee on behalf of the Trust has caused this
Certificate to be duly executed under its official seal.
LASALLE NATIONAL BANK,
as Trustee
By: ________________________________
Authorized Officer
Dated:________________________
(Seal)
CERTIFICATE OF AUTHENTICATION
This is a Class R Certificate referred to in the within-mentioned
Agreement.
LASALLE NATIONAL BANK,
as Certificate Registrar
By: ________________________________
Authorized Officer
-8-
<PAGE>
EXHIBIT B-3
[Form of Reverse of Certificate]
This Certificate is one of a duly authorized issue of Certificates
designated as AFC Mortgage Loan Asset Backed Certificates, Series 1997-1, Class
A and Class R (herein called the "Certificates") consisting of Sub-Pool 1 and
Sub-Pool 2 Mortgage Loans, and representing undivided ownership of (i) such
Mortgage Loans as from time to time are subject to the Agreement, together with
the Mortgage Files relating thereto, (ii) such assets as from time to time are
identified as REO Property or are deposited in the Certificate Account,
Principal and Interest Accounts, Trustee Expense Account, Pre-Funding Accounts,
Reserve Account and Interest Coverage Account, including amounts on deposit in
the foregoing accounts and invested in Permitted Instruments, (iii) the
Trustee's rights under all insurance policies with respect to the Mortgage Loans
required to be maintained pursuant to the Agreement and any Insurance Proceeds,
(iv) the Certificate Insurance Policy (as defined below), (v) Liquidation
Proceeds and (vi) Released Mortgaged Property Proceeds (all of the foregoing
being hereinafter collectively called the "Trust Fund"). The Depositor's Yield
and amounts due on or before the Cut-off Date in the case of Initial Mortgage
Loans or on or before a Subsequent Cut-off Date in the case of Subsequent
Mortgage Loans do not constitute part of the Trust Fund. The Class R
Certificates are subordinated in right of payment to the Class A Certificates,
as set forth in the Agreement.
The Certificates do not represent an obligation of, or an interest in, the
Servicer, the Depositor or the Trustee and are not insured or guaranteed by the
Federal Deposit Insurance Corporation, the Government National Mortgage
Association, the Federal Housing Administration or the Department of Veterans
Affairs or any other governmental agency. The Certificates are limited in right
of payment to certain collections and recoveries respecting the Mortgage Loans,
the Excess Spread, the Pre-Funded Amounts, the Initial Reserve Account Deposit,
the Interest Coverage Amount, and amounts payable under the Certificate
Insurance Policy, all as more specifically set forth herein and in the
Agreement. In the event Servicer funds are advanced with respect to any Mortgage
Loan, such advance is reimbursable to the Servicer from related recoveries on
such Mortgage Loan.
Financial Guaranty Insurance Company (the "Certificate Insurer") has issued
a surety bond (the "Certificate Insurance Policy") with respect to the Class A
Certificates, a copy of which is attached to the Agreement.
As provided in the Agreement, deposits and withdrawals from the Principal
and Interest Accounts, the Certificate Account, the Trustee Expense Account, the
Reserve Account and the Interest Coverage Account may be made by the Servicer or
the Trustee, as the case may be, from time to time for purposes other than
distributions to Certificateholders, such purposes including reimbursement to
the Servicer or the Depositor of advances made, or certain expenses incurred, by
each, and the payment of fees due and owing to the Servicer, the Trustee and the
Certificate Insurer.
<PAGE>
Subject to certain restrictions, the Agreement permits the amendment
thereof by the Servicer, the Depositor and the Trustee with the consent of the
Certificate Insurer and the Majority Certificateholders (although in certain
limited circumstances the Agreement may be amended without the consent of any
Certificateholder). The Agreement permits the Majority Certificateholders, on
behalf of all Certificateholders, subject to the consent of the Certificate
Insurer, or the Certificate Insurer, to waive any default by the Servicer in the
performance of its obligations under the Agreement and its consequences, except
a default in making any required distribution on a Certificate. Any such consent
or waiver by the Majority Certificateholders or the Certificate Insurer shall be
conclusive and binding on the Holder of this Certificate and upon all future
Holders of this Certificate and of any Certificate issued upon the transfer
hereof or in exchange herefor or in lieu hereof whether or not notation of such
consent or waiver is made upon this Certificate.
As provided in the Agreement and subject to certain limitations therein set
forth, the transfer of this Certificate is registrable in the Certificate
Register upon surrender of this Certificate for registration of transfer at the
offices or agencies maintained by the Trustee in Chicago, Illinois, accompanied
by a written instrument of transfer in the form required by the Agreement, or
such other endorsement or written instrument of transfer as is satisfactory to
the Trustee, duly executed by the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of authorized
denominations of a like Class evidencing the same aggregate undivided Percentage
Interest will be issued to the designated transferee or transferees.
The Certificates are issuable only as registered Class A and Class R
Certificates. As provided in the Agreement and subject to certain limitations
therein set forth, this Certificate is exchangeable for a new Certificate of a
like Class evidencing the same undivided ownership interest, as requested by the
Holder surrendering the same. No service charge will be made for any such
registration of transfer or exchange, but the Certificate Registrar may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.
The Servicer, the Depositor, the Trustee and the Certificate Registrar, and
any agent of any of the foregoing, may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
foregoing shall be affected by notice to the contrary.
The obligations created by the Agreement shall terminate upon notice to the
Trustee of: (i) the later of the distribution to Certificateholders of the final
payment or collection with respect to the last Mortgage Loan (or Monthly
Advances of same by the Servicer), or the disposition of all funds with respect
to the last Mortgage Loan and the remittance of all funds due under the
Agreement and the payment of all amounts due and payable to the Certificate
Insurer and the Trustee, (ii) the purchase by the Servicer of all outstanding
Mortgage Loans and REO Properties at a price determined as provided in the
Agreement (the exercise of the right of the Servicer to purchase all the
Mortgage Loans and
-2-
<PAGE>
property in respect of Mortgage Loans will result in early retirement of the
Certificates), the right of the Servicer to purchase being subject to the
aggregate principal balance of the Mortgage Loans at the time of purchase being
less than five percent (5%) of the sum of the Original Pool Principal Balance
and the Pre-Funded Amounts or (iii) by the mutual consent of the Servicer, the
Certificate Insurer and all Certificateholders in writing. In no event, however,
shall the Trust Fund terminate later than twenty-one years after the death of
the last surviving lineal descendant of the Person named in the Agreement. By
its acceptance of this Certificate, the Certificateholder hereby appoints the
Servicer as its attorney-in-fact to adopt a plan of liquidation of the Trust
Fund in accordance with Section 11.02 of the Agreement.
Unless the certificate of authentication hereon has been executed by the
Trustee or the Certificate Registrar, by manual signature, this Certificate
shall not be entitled to any benefit under the Agreement or be valid for any
purpose.
-3-
<PAGE>
EXHIBIT C
PRINCIPAL AND INTEREST ACCOUNT LETTER AGREEMENT
(date)
To: ____________________________
____________________________
____________________________ (the "Depository")
As "Servicer" under the Pooling and Servicing Agreement, dated as of March
1, 1997, among Superior Bank FSB, as ("Depositor"), Lee Servicing Company, a
division of Superior Bank FSB, as servicer (the "Servicer"), and LaSalle
National Bank, as Trustee (the "Agreement"), we hereby authorize and request you
to establish two accounts, as Principal and Interest Accounts pursuant to
Section 5.03 of the Agreement, to be designated as, with respect to Sub-Pool 1,
"Sub-Pool 1 Principal and Interest Account, Lee Servicing Company, a division of
Superior Bank FSB, in trust for the registered holders of AFC Mortgage Loan
Asset Backed Certificates, Series 1997-1" and, with respect to Sub-Pool 2,
"Sub-Pool 2 Principal and Interest Account, Lee Servicing Company, a division of
Superior Bank FSB, in trust for the registered holders of AFC Mortgage Loan
Asset Backed Certificates, Series 1997-1." All deposits in the accounts shall be
subject to withdrawal therefrom by order signed by the Servicer in accordance
with terms of the Agreement. You may refuse any deposit which would result in
violation of the requirement that the account be fully insured as described
below. This letter is submitted to you in duplicate. Please execute and return
one original to us.
LEE SERVICING COMPANY, a
division of Superior Bank FSB
By: ___________________________
Name: _________________________
Title: ________________________
<PAGE>
The undersigned hereby certifies that the above described accounts have
been established as trust accounts under Account Number ___________ and Account
Number __________, at the office of the Depository indicated above, and agrees
to honor withdrawals on such accounts as provided above. The amounts deposited
at any time in the accounts will be insured to the maximum amount provided by
applicable law by the Federal Deposit Insurance Corporation.
[DEPOSITORY]
By: ___________________________
Name: _________________________
Title: ________________________
-2-
<PAGE>
EXHIBIT D
RESALE CERTIFICATION
___________, 19__
[Depositor]
[Servicer]
[Trustee]
[Certificate Insurer]
[Certificate Registrar]
Re: Class ___ Certificate, No. __ (the "Certificate"), issued
pursuant to that certain Pooling and Servicing Agreement, AFC
Mortgage Loan Asset Backed Certificates, Series 1997-1, dated
as of March 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
_______________________________________________________________
Dear Sirs:
____________________________________________________ as registered holder
("Seller") intends to transfer the captioned Certificate to__________________
_____________________ ("Purchaser"), for registration in the name of
________________________________.
1. In connection with such transfer, and in accordance with Section 4.02 of
the captioned Agreement, Seller hereby certifies to you the following facts:
Neither the Seller nor anyone acting on its behalf has offered, transferred,
pledged, sold or otherwise disposed of the Certificate, any interest in the
Certificate or any other similar security to, or solicited any offer to buy or
accept a transfer, pledge or other disposition of the Certificate, any interest
in the Certificate or any other similar security from, or otherwise approached
or negotiated with respect to the Certificate, any interest in the Certificate
or any other similar security with, any person in any manner, or made any
general solicitation by means of general advertising or in any other manner, or
taken any other action, which would constitute a distribution of the Certificate
under the Securities Act of 1933, as amended (the "1933 Act"), or which would
render the disposition of the Certificate a violation of Section 5 of the 1933
Act or require registration pursuant thereto.
2. The Purchaser warrants and represents to, and covenants with, the
Seller, the Trustee and the Servicer pursuant to Section 4.02 of the Pooling and
Servicing Agreement that:
<PAGE>
a. The Purchaser agrees to be bound, as Certificateholder, by all of the
terms, covenants and conditions of the Pooling and Servicing Agreement, the
Certificate and the Custodial Agreement, and from and after the date hereof, the
Purchaser assumes for the benefit of each of the Servicer and the Seller all of
the Seller's obligations as Certificateholder thereunder;
b. The Purchaser understands that the Certificate has not been registered
under the 1933 Act or the securities laws of any state;
c. The Purchaser is acquiring the Certificate [for investment] for its own
account only and not for any other person;
d. The Purchaser considers itself a substantial, sophisticated
institutional investor having such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and risks of
investment in the Certificate;
e. The Purchaser has been furnished with all information regarding the
Certificate that it has requested from the Seller, the Trustee or the Servicer;
and
f. Neither the Purchaser nor anyone acting on its behalf has offered,
transferred, pledged, sold or otherwise disposed of the Certificate, any
interest in the Certificate or any other similar security to, or solicited any
offer to buy or accept a transfer, pledge or other disposition of the
Certificate, any interest in the Certificate or any other similar security from,
or otherwise approached or negotiated with respect to the Certificate, any
interest in the Certificate or any other similar security with, any person in
any manner, or made any general solicitation by means of general advertising or
in any other manner, or taken any other action, which would constitute a
distribution of the Certificate under the 1933 Act or which would render the
disposition of the Certificate a violation of Section 5 of the 1933 Act or
require registration pursuant thereto, nor will it act, nor has it authorized or
will it authorize any person to act, in such manner with respect to the
Certificate.
3. The Purchaser warrants and represents to, and covenants with, the
Seller, the Servicer and the Depositor that:
a. The Purchaser agrees to be bound, as Certificateholder, by the
restrictions on transfer contained in the Pooling and Servicing Agreement;
b. Either: (1) the Purchaser is not an employee benefit plan within the
meaning of section 3(3) of the Employee Retirement Income Security Act of 1974,
as amended ("ERISA") (a "Plan"), or a plan within the meaning of section
4975(e)(1) of the Internal Revenue Code of 1986 ("Code") (also a "Plan"), and
the Purchaser is not directly or indirectly purchasing the Certificates on
behalf of, as investment manager of, as named fiduciary of, as trustee of, or
with assets of a Plan; or (2) Purchaser's purchase of the Certificate(s) will
not result in a prohibited transaction under section 406 of ERISA or section
4975 of the Code.
-2-
<PAGE>
4. This Certification may be executed in one or more counterparts and by
the different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same agreement.
IN WITNESS WHEREOF, the parties have caused this Resale Certification to be
executed by their duly authorized officers as of the date first above written.
_____________________________, _____________________________,
Seller Purchaser
By: _________________________ By: _________________________
Name: _______________________ Name: _______________________
Title: ______________________ Title: ______________________
Taxpayer Taxpayer
Identification No. __________ Identification No. __________
-3-
<PAGE>
EXHIBIT E
ASSIGNMENT
THIS ASSIGNMENT dated as of the __ day of __________, 19__, by and between
___________________________________________________ ("Assignor") and
_____________________________________ ("Assignee"), provides:
That for and in consideration of the sum of TEN DOLLARS ($10.00) and other
valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, the parties hereby agree as follows:
1. Assignor hereby grants, transfers and assigns to Assignee all of the
right, title and interest of Assignor, as Certificateholder, in, to and under
that certain Pooling and Servicing Agreement (the "Pooling and Servicing
Agreement"), dated as of March 1, 1997, by and among LaSalle National Bank, as
Trustee ("Trustee"), Superior Bank FSB, as Depositor, and Lee Servicing Company,
a division of Superior Bank FSB, as Servicer, and that certain Certificate,
Class _____, No. __, Series 1997-1 (the "Certificate") issued thereunder and
authenticated by the Trustee.
2. For the purpose of inducing Assignee to purchase the Certificate from
Assignor, Assignor warrants and represents that:
a. Assignor is the lawful owner of the Certificate with the full right
to transfer the Certificate free from any and all claims and encumbrances
whatsoever;
b. The Assignor has not received notice, and has no knowledge of any
offsets, counterclaims or other defenses available to the Servicer with
respect to the Pooling and Servicing Agreement or the Certificate; and
c. [The Assignor has no knowledge of and has not received notice of
any amendments to the Pooling and Servicing Agreement or the Certificate.]
[The Pooling and Servicing Agreement has been amended pursuant to
_____________ dated _________________]
3. By execution hereof Assignee agrees to be bound, as Certificateholder,
by all of the terms, covenants and conditions of the Pooling and Servicing
Agreement and the Certificate, and from and after the date hereof Assignee
assumes for the benefit of each of the Servicer, the Depositor, the Trustee, the
Certificate Registrar and the Assignor all of Assignor's obligations as
Certificateholder thereunder.
4. The Assignee warrants and represents to, and covenants with, the
Assignor, the Depositor, the Trustee, the Certificate Registrar and the Servicer
that:
<PAGE>
a. The Assignee agrees to be bound, as Certificateholder, by the
restrictions on transfer contained in the Pooling and Servicing Agreement;
and
b. Either: (1) the Assignee is not an employee benefit plan within the
meaning of section 3(3) of the Employee Retirement Income Security Act of
1974, as amended ("ERISA") (a "Plan"), or a plan within the meaning of
section 4975(e)(1) of the Internal Revenue Code of 1986 ("Code") (also a
"Plan"), and the Assignee is not directly or indirectly purchasing the
Certificate on behalf of, as investment manager of, as named fiduciary of,
as trustee of, or with assets of a Plan; or (2) the Assignee is a Plan, but
the Assignee's purchase of the Certificate will not result in a prohibited
transaction under section 406 of ERISA or section 4975 of the Code and
attached hereto is the certification and opinion of counsel required under
Section 4.02(c) of the Pooling and Servicing Agreement.
5. This Assignment may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same agreement.
WITNESS the following signatures.
_____________________________, _____________________________,
Assignor Assignee
By: _________________________ By: _________________________
Name: _______________________ Name: _______________________
Title: ______________________ Title: ______________________
Taxpayer Taxpayer
Identification No. __________ Identification No. __________
-2-
<PAGE>
State of ___________ )
) ss.:
County of __________ )
On the ___________ day of ______________, 19__ before me, a Notary Public
in and for the State of __________, personally appeared ___________ known to me
to be ________________________ of _________________________________, the
________________ that executed the within instrument and also known to me to be
the person who executed it on behalf of said corporation, and acknowledged to me
that such ________________ executed the within instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.
Notary Public
__________________________________
My Commission expires ____________
<PAGE>
State of ___________ )
) ss.:
County of __________ )
On the ___________ day of ______________, 19__ before me, a Notary Public
in and for the State of ____________, personally appeared ___________ known to
me to be ________________________ of _________________________________, the
________________ that executed the within instrument and also known to me to be
the person who executed it on behalf of said corporation, and acknowledged to me
that such ________________ executed the within instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.
Notary Public
__________________________________
My Commission expires ____________
<PAGE>
EXHIBIT E(1)
WIRING INSTRUCTIONS FORM
______________, 19__
[Paying Agent]
[Trustee]
Re: AFC Mortgage Loan Asset Backed Certificates, Series 1997-1,
Class ___, No. __, issued pursuant to that certain Pooling and
Servicing Agreement, dated as of March 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
_______________________________________________________________
Dear Sir:
In connection with the sale of the above-captioned Certificate by
_________________ to_________________ ("Transferee") you, as Paying Agent with
respect to the related Certificates, are instructed to make all remittances to
Transferee as Certificateholder as of _________, 199_ by wire transfer. For such
wire transfer, the wiring instructions are as follows:
Bank Name: _______________________________
City & State: _______________________________
ABA No.: _______________________________
Account Name: _______________________________
Account No.: _______________________________
Attention: _______________________________
___________________________________
Transferee
Certificateholder's notice address:
Name:
Address:
<PAGE>
EXHIBIT F
FORM OF TRUSTEE INITIAL CERTIFICATION
______________, 19__
[Certificate Insurer]
[Servicer]
[Purchaser]
[Certificateholder]
Re: Pooling and Servicing Agreement, dated as of March 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
______________________________________________________________
Gentlemen:
In accordance with Section 2.05 of the above-captioned Pooling and
Servicing Agreement, the undersigned, as Trustee, hereby certifies that, except
as noted on the attachment hereto, if any (the "Loan Exception Report"), it or
the Custodian on its behalf has received the documents referred to in Section
2.04(a) of the Pooling and Servicing Agreement with respect to each Mortgage
Loan listed in the related Mortgage Loan Schedule and such documents appear to
bear original signatures or copies of original signatures if the original
documents have not yet been delivered.
The Trustee has made no independent examination of any such documents
beyond the review specifically required in the above-referenced Pooling and
Servicing Agreement. The Trustee makes no representations as to: (i) the
validity, legality, sufficiency, enforceability or genuineness of any such
documents or any of the Mortgage Loans identified on the related Mortgage Loan
Schedule, or (ii) the collectability, insurability, effectiveness or suitability
of any such Mortgage Loan.
Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-captioned Pooling and Servicing
Agreement.
LASALLE NATIONAL BANK,
as Trustee
By: ___________________________
Name: _________________________
Title: ________________________
<PAGE>
EXHIBIT F-1
FORM OF TRUSTEE INTERIM CERTIFICATION
______________, 19__
[Certificate Insurer]
[Depositor]
[Servicer]
[Certificateholders]
Re: Pooling and Servicing Agreement, dated as of March 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
______________________________________________________________
Gentlemen:
In accordance with the provisions of Section 2.05 of the above-referenced
Pooling and Servicing Agreement, the undersigned, as Trustee, hereby certifies
that as to each Mortgage Loan listed in the related Mortgage Loan Schedule
(other than any Mortgage Loan paid in full or any Mortgage Loan listed on the
attachment hereto), it has reviewed (or caused to be reviewed) the documents
delivered to it or the Custodian on its behalf pursuant to Section 2.04 of the
Pooling and Servicing Agreement and has determined that, except as noted on the
attachment hereto, (i) all documents required to be delivered to it pursuant to
the Pooling and Servicing Agreement as of the date hereof are in its possession
or in the possession of the Custodian on its behalf (other than items listed in
Section 2.04(f) of the Pooling and Servicing Agreement), (ii) none of the
documents delivered to it or the Custodian on its behalf have been mutilated,
damaged, torn or otherwise physically altered and all such documents relate to
such Mortgage Loan, (iii) based on its examination, or the examination of the
Custodian on its behalf, and only as to the foregoing documents, the information
set forth in the related Mortgage Loan Schedule respecting such Mortgage Loan is
correct and (iv) each Mortgage Note has been endorsed as provided in Section
2.04 of the Pooling and Servicing Agreement. The Trustee has made no independent
examination of such documents beyond the review specifically required in the
above-referenced Pooling and Servicing Agreement. The Trustee makes no
representations as to: (i) the validity, legality, enforceability or genuineness
of any of the
<PAGE>
documents contained in each Trustee's Mortgage File or any of the Mortgage Loans
identified on the related Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.
Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-captioned Pooling and Servicing
Agreement.
LASALLE NATIONAL BANK,
as Trustee
By: ___________________________
Name: _________________________
Title: ________________________
-2-
<PAGE>
EXHIBIT G
FORM OF TRUSTEE FINAL CERTIFICATION
_____________, 19__
[Certificate Insurer]
[Servicer]
[Certificateholders]
[Depositor]
Re: Pooling and Servicing Agreement, dated as of March 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, relating to AFC Mortgage Loan
Asset Backed Certificates, Series 1997-1
_____________________________________________________________
Gentlemen:
In accordance with Section 2.05 of the above-captioned Pooling and
Servicing Agreement, the undersigned, as Trustee, hereby certifies that, except
as noted on the attachment hereto, as to each Mortgage Loan listed in the
related Mortgage Loan Schedule (other than any Mortgage Loan paid in full or
listed on the attachment hereto) it or the Custodian on its behalf has reviewed
the documents delivered to it or to the Custodian on its behalf pursuant to
Section 2.04 of the Pooling and Servicing Agreement and has determined that (i)
all documents required to be delivered to it pursuant to the Pooling and
Servicing Agreement as of the date hereof are in its possession or in the
possession of the Custodian on its behalf (except that no certification is given
as to the items listed in Section 2.04(f) of the Pooling and Servicing
Agreement), (ii) none of the documents delivered to it or the Custodian on its
behalf have been mutilated, damaged, torn or otherwise physically altered and
all such documents relate to such Mortgage Loan, (iii) based on its examination,
and only as to the foregoing documents, the information set forth in the related
Mortgage Loan Schedule respecting such Mortgage Loan is correct and (iv) each
Mortgage Note has been endorsed as provided in Section 2.04 of the Pooling and
Servicing Agreement. The Trustee has made no independent examination of such
documents beyond the review specifically required in the above-referenced
Pooling and Servicing Agreement. The Trustee makes no representations as to: (i)
the validity, legality, enforceability or genuineness of any of the documents
contained in each Trustee's Mortgage File or any of the
<PAGE>
Mortgage Loans identified on the related Mortgage Loan Schedule, or (ii) the
collectability, insurability, effectiveness or suitability of any such Mortgage
Loan.
Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-captioned Pooling and Servicing
Agreement.
LASALLE NATIONAL BANK,
as Trustee
By: ___________________________
Name: _________________________
Title: ________________________
-2-
<PAGE>
EXHIBIT H-1
MORTGAGE LOAN SCHEDULE FOR SUB-POOL 1
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 1
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
BS20D 10266112506 COLLYMORE JOHN 145 EAST 46TH STREET BROOKLYN NY
------------------------------------------------
1 Sale Total
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10266112506 11203 144,000.00 142,935.44 07/07/96 06/07/26 351.22 02/07/97 80.0 13.400 1,638.07
----------------------------------- -------- ----------------------------
144,000.00 142,935.44 351.22 80.0 13.400 1,638.07
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 2
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
BS26 10266112872 ROBERTS WARREN J 2620 E. GUADALUPE CIRCLE EAST CHICAGO IN
BS26 10266127422 LOTFI GHULAMRIZA 615 WALNUT STREET STATE COLLEGE PA
BS26 10266130704 ALLEN DAVID B 387 FAIRMONT AVENUE POCATELLO ID
BS26 10266134461 JOHNSON RICHARD W 5750 SOUTH DYNASTY OAKS CIRCL TAYLORSVILLE UT
BS26 10266134611 GROY SCOTT R RD 1 BOX 6318 GRANTVILLE PA
BS26 10266135112 DUSINA LOUIS LOT 5 KELLICHE COURT LAKE CITY FL
BS26 10266135461 MARION THOMAS ROSS 119 MIRAMAR AVENUE ROYAL PALM BEACH FL
BS26 10266135710 GARCIA ELAINE H 673 EAST 4000 SOUTH VERNAL UT
BS26 10266135769 ROSE WILLIAM W 3622 BROOKFIELD ROAD HARRISBURG PA
BS26 10266136279 INSURRIAGA CELSA 520 COYOTE ROAD SAN JOSE CA
BS26 10266136299 WILLIE ROBERT R 1396 WEST 1200 NORTH ST GEORGE UT
BS26 10266136386 HOLDEN HARRY T 7610 BERNVILLE ROAD BERNVILLE PA
BS26 10266136435 SELTZER ARTHUR H 144 GLENIFFER HILL ROAD RICHBORO PA
BS26 10266136475 DAVIS EDWARD J 320 BARNESTON ROAD GLENMOORE PA
BS26 10266136623 GUSTAFSON DAVID H 2517 LAKE DRIVE EVERETT WA
BS26 10266137338 ANDERSON JAY E 4454 WEST 5500 SOUTH SALT LAKE CITY UT
BS26 10266137552 HONG STANLEY S 3647 SOUTH BUCKEROO DRIVE MAGNA UT
BS26 10266137848 STEWART KENNETH J 5508 W MICHELLE DRIVE GLENDALE AZ
BS26 10266137869 LOGAN NORMAN WILLIAM JR 4013 BUTTE CIRCLE LAS VEGAS NV
BS26 10266137935 MILES KENNETH G 4440 51ST AVENUE SOUTHWEST SEATTLE WA
BS26 10266138112 RICHARDS JIM 5406 SOUTH 4460 WEST SALT LAKE CITY UT
BS26 10266138141 HERRERA DOMINGO 33-33 71ST STREET JACKSON HEIGHTS NY
BS26 10266138226 HART RICHARD H 1062 WEST 820 NORTH PROVO UT
BS26 10266138306 MCGINNESS JOHN P 3304 KATO COURT CAMERON PARK CA
BS26 10266138309 ADAMS TAMMY I 3729 SOUTH MISSION DR SOUTH LAKE HAVASU CITY AZ
BS26 10266138337 COYLE BRADFORD S 7337 E HALIFAX DRIVE MESA AZ
BS26 10266138347 SHERBET GARY M 3525 INDIANPIPE CIRCLE COLORADO SPRINGS CO
BS26 10266138350 BLANKENHEIM PAUL H 508 JAY STREET LAKEWOOD CO
BS26 10266138440 ROBERTS JACK JR 1847 NESBITT ROAD CALEDONIA OH
BS26 10266138504 CLARIDGE JOYCE C 7388 SW 173RD PLACE ALOHA OR
BS26 10266138615 PETERSON DEBRA C 245 SHERMAN STREET DENVER CO
BS26 10266138624 NEVAREZ ADALBERTO B 745 W ATLANTA AVENUE PHOENIX AZ
BS26 10266138749 HROBOWSKI ANNIE DEAN 110 SOUTH 12TH AVENUE MAYWOOD IL
BS26 10266138819 WEBB MARC D 4147 SOUTH LONG VALLEY DRIVE WEST VALLEY CITY UT
BS26 10266138826 GRASSER MARY ANN 945 FRONT STREET LOUISVILLE CO
BS26 10266138977 CROWTHER JAMES W 2244 ELMORE STREET POCATELLO ID
BS26 10266139035 DOYLE ROBERT T 240 EAST 600 NORTH LEHI UT
BS26 10266139062 HENLINE RICHARD L 8891 SOUTH MINGO PARK DRIVE SANDY UT
BS26 10266139068 DAVIS JOHN R 8515 TANNENBAUM ROAD COLORADO SPRINGS CO
BS26 10266139080 CONLEY DONNIE 14620 BEECHVIEW TERRACE DOLTON IL
BS26 10266139102 WESTWATER ALAN G 6329 MALLARD DRIVE NINEVAH IN
BS26 10266139139 FRANCOMANO DAVID M 2925 VALENCIA ROAD COLORADO SPRINGS CO
BS26 10266139159 COLVIN KELLY S 1763 CHILDS AVENUE OGDEN UT
BS26 10266139187 GOKEY GARY J 1743 SOUTH ALCOTT STREET DENVER CO
BS26 10266139240 MARKER STANLEY N II 120 YANK COURT LAKEWOOD CO
BS26 10266139249 STALICK ROGER D 915 NW TORREYVIEW LANE PORTLAND OR
BS26 10266139284 DECKER CHARLES R 228 SW FOREST COVE ROAD WEST LINN OR
BS26 10266139314 DRURY ROBERT E 322 2ND AVENUE EAST SHAKOPEE MN
BS26 10266139331 DAWSON CHARLENE M 1758 SW BLAINE DRIVE ALOHA OR
BS26 10266139374 LEAVITT KURT D 2011 JIM HAWORTH COURT LOGANDALE NV
BS26 10266139380 LUCAS WILLIAM E 918 DELFT DRIVE COLORADO SPRINGS CO
BS26 10266139389 HOHN RICHARD L 207 76TH STREET SOUTHEAST EVERETT WA
BS26 10266139408 LAIRD VIRGINIA M 5 OAK BROOK CLUB DRIVE OAK BROOK IL
BS26 10266139443 CANTY LEANN 4624-4634 SIMMS STREET WHEATRIDGE CO
BS26 10266139477 BETANCOURT EFRAIN 14624 NORTH 25TH AVENUE PHOENIX AZ
BS26 10266139516 WINCHESTER PARKER G 1503 RIBBLE AVENUE MUNCIE IN
BS26 10266139539 SUNCIN CARLOS 125 RAE AVENUE SAN FRANCISCO CA
BS26 10266139543 NEGUS MICHAEL C 167 E STREET SALT LAKE CITY UT
BS26 10266139559 DEGROOT DONALD L 7902 4TH STREET WELLINGTON CO
BS26 10266139566 ROEDEMA JAMES A 2007 WEST HYACINTH ROAD HIGHLANDS RANCH CO
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10266112872 46312 27,000.00 26,463.56 07/28/96 06/28/11 171.91 03/28/97 51.1 10.240 294.12
10266127422 16801 59,000.00 58,560.55 11/04/96 10/04/16 235.13 03/04/97 66.2 8.500 512.02
10266130704 83201 26,000.00 25,783.75 12/01/96 11/01/11 176.00 03/01/97 88.1 11.950 311.21
10266134461 84118 22,900.00 22,900.00 11/28/96 10/28/11 175.92 03/28/97 89.5 12.350 280.02
10266134611 17028 60,260.00 60,260.00 01/16/97 12/16/11 177.53 02/16/97 74.5 12.700 652.50
10266135112 32024 65,200.00 65,083.43 02/07/97 01/07/27 358.26 03/07/97 86.3 10.500 596.41
10266135461 33411 85,000.00 85,000.00 02/10/97 01/10/27 358.36 02/10/97 64.8 9.800 733.40
10266135710 84078 41,600.00 41,600.00 02/01/97 01/01/12 178.00 04/01/97 72.3 14.850 577.96
10266135769 17109 74,800.00 74,382.99 12/14/96 11/14/11 176.48 03/14/97 85.0 8.800 591.13
10266136279 95111 145,350.00 145,350.00 02/01/97 01/01/27 358.00 03/01/97 90.0 12.600 1,562.55
10266136299 84770 21,974.00 21,974.00 02/01/97 01/01/12 178.00 03/01/97 85.0 13.700 255.15
10266136386 19506 15,000.00 14,898.84 02/21/97 01/21/12 178.72 03/21/97 49.6 10.500 165.81
10266136435 18954 32,900.00 32,405.57 12/27/96 11/27/11 176.91 03/27/97 86.4 12.900 414.10
10266136475 19343 24,000.00 23,389.62 12/08/96 11/08/11 176.28 04/08/97 89.8 12.100 289.59
10266136623 98205 11,125.00 11,125.00 03/01/97 02/01/12 179.00 03/01/97 84.7 12.350 117.44
10266137338 84118 17,943.00 17,943.00 02/01/97 01/01/12 178.00 03/01/97 79.8 14.200 215.45
10266137552 84044 11,000.00 10,939.79 01/20/97 12/20/06 117.67 03/20/97 51.7 13.850 169.80
10266137848 85308 15,500.00 15,471.12 12/19/96 11/19/11 176.65 03/19/97 26.3 13.200 198.16
10266137869 89110 22,000.00 22,000.00 03/01/97 02/01/17 239.00 04/01/97 89.0 10.700 222.61
10266137935 98116 33,600.00 33,352.17 03/01/97 02/01/12 179.00 04/01/97 85.0 12.750 365.13
10266138112 84118 25,885.00 25,885.00 03/01/97 02/01/17 239.00 03/01/97 87.8 11.350 273.37
10266138141 11372 30,000.00 29,967.09 02/23/97 01/23/12 178.78 03/23/97 86.9 12.250 364.89
10266138226 84604 15,300.00 15,261.90 03/01/97 02/01/12 179.00 04/01/97 84.8 12.750 166.26
10266138306 95682 17,114.00 17,114.00 03/01/97 02/01/12 179.00 03/01/97 85.0 12.350 209.27
10266138309 86406 14,000.00 13,997.31 02/01/97 01/01/12 178.00 03/01/97 89.9 11.950 167.57
10266138337 85207 16,160.00 16,160.00 01/13/97 12/13/11 177.44 03/13/97 90.0 12.600 200.23
10266138347 80918 32,772.00 32,703.83 03/01/97 02/01/17 239.00 04/01/97 79.7 13.990 407.29
10266138350 80226 54,696.00 54,617.32 03/01/97 02/01/12 179.00 04/01/97 84.8 12.750 594.38
10266138440 43314 68,200.00 68,200.00 02/15/97 01/15/17 238.52 02/15/97 64.9 14.000 848.08
10266138504 97007 42,688.00 42,688.00 03/01/97 02/01/12 179.00 03/01/97 84.9 12.750 533.10
10266138615 80203 57,500.00 57,500.00 03/01/97 02/01/12 179.00 03/01/97 67.6 11.300 664.42
10266138624 85041 19,700.00 19,614.60 01/23/97 12/23/11 177.76 03/23/97 79.9 11.950 235.80
10266138749 60153 46,000.00 45,759.26 01/26/97 12/26/11 177.86 03/26/97 48.4 9.600 483.12
10266138819 84128 12,500.00 12,500.00 02/01/97 01/01/12 178.00 03/01/97 88.8 11.600 146.82
10266138826 80027 25,789.00 24,979.56 03/01/97 02/01/12 179.00 07/01/97 69.9 11.250 250.48
10266138977 83201 23,380.00 23,204.57 02/07/97 01/07/12 178.26 04/07/97 79.7 14.700 290.03
10266139035 84043 52,100.00 52,100.00 02/01/97 01/01/12 178.00 03/01/97 84.5 13.700 604.97
10266139062 84070 32,850.00 32,802.91 02/01/97 01/01/12 178.00 03/01/97 74.9 12.700 355.70
10266139068 80908 67,000.00 67,000.00 03/01/97 02/01/17 239.00 03/01/97 84.7 10.100 651.01
10266139080 60419 20,000.00 19,739.32 02/01/97 01/01/12 178.00 04/01/97 77.4 11.100 228.58
10266139102 46164 33,600.00 33,600.00 02/01/97 01/01/12 178.00 03/01/97 84.9 12.350 410.85
10266139139 80917 15,000.00 14,907.84 03/01/97 02/01/12 179.00 04/01/97 84.0 12.350 183.42
10266139159 84404 37,136.00 36,937.32 01/17/97 12/17/11 177.57 03/17/97 84.9 13.350 478.44
10266139187 80219 32,540.00 32,540.00 03/01/97 02/01/12 179.00 03/01/97 77.1 11.100 371.89
10266139240 80228 37,500.00 37,500.00 03/01/97 02/01/12 179.00 03/01/97 81.7 12.750 468.31
10266139249 97229 58,825.00 58,825.00 02/01/97 01/01/12 178.00 03/01/97 85.0 13.700 683.06
10266139284 97068 61,000.00 61,000.00 03/01/97 02/01/12 179.00 03/01/97 79.9 13.500 698.70
10266139314 55379 31,500.00 31,500.00 02/15/97 01/15/17 238.52 03/15/97 70.0 11.500 335.93
10266139331 97006 25,000.00 25,000.00 03/01/97 02/01/12 179.00 03/01/97 67.6 12.000 257.15
10266139374 89021 12,500.00 12,456.41 01/20/97 12/20/11 177.67 03/20/97 81.5 13.350 161.04
10266139380 80907 20,000.00 20,000.00 03/01/97 02/01/12 179.00 03/01/97 86.8 11.350 231.73
10266139389 98203 24,120.00 24,120.00 03/01/97 02/01/17 239.00 03/01/97 84.8 12.750 278.30
10266139408 60521 122,800.00 122,633.14 01/23/97 12/23/16 237.76 03/23/97 59.7 11.000 1,267.53
10266139443 80033 39,015.00 39,015.00 03/01/97 02/01/12 179.00 03/01/97 80.0 11.250 378.94
10266139477 85023 25,000.00 25,000.00 03/01/97 02/01/12 179.00 03/01/97 41.2 11.850 254.27
10266139516 47302 46,400.00 46,251.49 01/18/97 12/18/16 237.60 03/18/97 84.8 9.600 435.54
10266139539 94112 77,000.00 77,000.00 03/01/97 02/01/12 179.00 03/01/97 89.9 11.950 789.07
10266139543 84103 53,535.00 53,535.00 03/01/97 02/01/12 179.00 03/01/97 80.0 12.200 558.92
10266139559 80549 30,000.00 30,000.00 03/01/97 02/01/27 359.00 03/01/97 83.4 12.750 326.01
10266139566 80126 100,570.00 100,425.62 03/01/97 02/01/12 179.00 04/01/97 84.9 12.750 1,092.89
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 3
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
BS26 10266139578 VIGLIUCCI FRANK A 30110 BOLINGBROOK ROAD PEPPER PIKE OH
BS26 10266139635 FELICIANO JOSEPH A 3660 SOUTH GEITZ STREET SALT LAKE CITY UT
BS26 10266139651 PAGNI KENNETH E 22925 NORTH 91ST WAY SCOTTSDALE AZ
BS26 10266139658 MATTHEWS ROBERT EDWARD 3235 WEST 4960 SOUTH TAYLORSVILLE UT
BS26 10266139674 PATTERSON MICHAEL M 22716 NE 12TH PLACE REDMOND WA
BS26 10266139699 GUMAN WILLIAM F 4825 SETON PLACE COLORADO SPRINGS CO
BS26 10266139723 STANLEY JR WILLIAM J 6858 WESTRIDGE COURT NORTH KEIZER OR
BS26 10266139730 MOSER REGINA 7651 SOUTH ESTES STREET LITTLETON CO
BS26 10266139749 HOWELL PATRICIA 4223 WEST ROSE CIRCLE SALT LAKE CITY UT
BS26 10266139753 BENGOCHEA THOMAS L 9814 SOUTH ALTAMONT DRIVE SANDY UT
BS26 10266139757 KALEN AUDREY L 4965 QUALLA DRIVE BOULDER CO
BS26 10266139760 SEWELL LAURENCE E 61497 ORION DRIVE BEND OR
BS26 10266139776 LORADITCH THOMAS A 1081 BLOOMFIELD AVENUE AKRON OH
BS26 10266139820 BRUNNER GAIL M 4937 STANLEY AVENUE DOWNERS GROVE IL
BS26 10266139844 GARCIA ROBERTO 5239 W SCHUBERT CHICAGO IL
BS26 10266139901 GRACIA JAMES EDWARD 360 RANGELY DRIVE COLORADO SPRINGS CO
BS26 10266139908 FRIEDMAN ROBERT 17340 PINEY COURT COLORADO SPRINGS CO
BS26 10266139923 UNGVARY CAREY R 5444 NORTH LARIAT DRIVE CASTLE ROCK CO
BS26 10266139928 SCHROEDER MARK E 76483 SPOT STREET OAKRIDGE OR
BS26 10266139930 ESQUIBEL ARTHUR E 632 BATAAN DRIVE SW ALBUQUERQUE NM
BS26 10266139989 VILMIN GREGG T 10966 MELODY DRIVE NORTHGLENN CO
BS26 10266139999 DAY DOUGLAS D 1148 30 1/4 LANE PUEBLO CO
BS26 10266140008 HERNANDEZ GERARDO 7747 MUIRFIELD DRIVE LAS VEGAS NV
BS26 10266140046 MORRILL JR CLINTON 2500 WEST HIGHWAY 40 ROOSEVELT UT
BS26 10266140049 BLALOCK MORRIS L 1098 EAST 500 SOUTH PLEASANT GROVE UT
BS26 10266140054 GALLOWAY JR THEO M 4692 ANAHEIM COURT DENVER CO
BS26 10266140055 CROWDER STEVEN R 6860 PEPPERTREE DRIVE NIWOT CO
BS26 10266140056 SPICCI KEVIN J 5695 GOLD LEAF LANE PLACERVILLE CA
BS26 10266140115 THOMAS HELEN P 7424 S. BLACKSTONE CHICAGO IL
BS26 10266140117 MILLBROOK ELVIN 1114 NORTH HAMLIN AVENUE CHICAGO IL
BS26 10266140123 STEWART DEBORAH E 808 LAWRENCE DETROIT MI
BS26 10266140132 ROETHLER JAMES A 1 CIRCLE C ROAD FOUNTAIN CO
BS26 10266140153 CARSON SCOTT 340 WEST 40 SOUTH LINDON UT
BS26 10266140162 WONG SHARON F 1290 MARSTONE ST SE SALEM OR
BS26 10266140223 BLEI MICHAEL J 9896 WEST FRIEND PLACE LITTLETON CO
BS26 10266140230 WILSON-ROY KAREN K 1904 WEST BENAIR DRIVE WEST JORDAN UT
BS26 10266140233 FIVAS REX A 4861 SOUTH HEATH AVENUE SALT LAKE CITY UT
BS26 10266140246 DOTSON MARSHALL A 9135 BELLAIRE STREET THORNTON CO
BS26 10266140265 WIDENER GARY L 2390 SOUTH KING STREET DENVER CO
BS26 10266140275 HEIDELBERGER THOMAS A 2681 HERKIMER STREET BELLMORE NY
BS26 10266140315 COBABE FREDRICK WILLIAM ROUTE 2 BOX 2173 ROOSEVELT UT
BS26 10266140395 WESTBROOK WILLSON J SARAH 4378 WEST SUN DRIVE SALT LAKE CITY UT
BS26 10266140410 HANES DONNA JEAN 17151 WELD COUNTY ROAD 22 FORT LUPTON CO
BS26 10266140419 RAND CONNIE L 15031 SKY PINES ROAD GRASS VALLEY CA
BS26 10266140450 LARSEN BRAD L 9467 SOUTH 250 EAST SANDY UT
BS26 10266140460 SMITH ADELE WIEBALK 271 LOBOS STREET SAN FRANCISCO CA
BS26 10266140494 HANH KYONG H 6105 115TH PLACE SOUTHEAST BELLEVUE WA
BS26 10266140526 NOBLE FRANK ALBERT JR 4424 EAGLE STREET DENVER CO
BS26 10266140544 BENNETT DEBORAH 1144 WEST 250 SOUTH OREM UT
BS26 10266140562 JENSEN ALAN 2532 E BECKER LANE PHOENIX AZ
BS26 10266140577 NILSON JOHN 230 CHURCH STREET FREEPORT NY
BS26 10266140579 BENEDUCE SALVATORE 1267 MADISON STREET BROOKLYN NY
BS26 10266140607 HALL PAULA 227 EAST 1400 NORTH LEHI UT
BS26 10266140623 GEORGIEV MILENA S 231 EAST HAMPTON AVENUE SALT LAKE CITY UT
BS26 10266140661 CHRISTENSEN MAXINE R 620 WEST CAPRI DRIVE MURRAY UT
BS26 10266140684 PARSONS GEORGE R 330 124TH AVENUE NW COON RAPIDS MN
BS26 10266140699 DUMAIS PETER J 786 SILVERBERRY LANE GOLDEN CO
BS26 10266140716 SCOTT JAMES A 8723 COUNTY ROAD 74-82 ELBERT CO
BS26 10266140722 MANGRUM CHARLES R 3854 WEST 8350 SOUTH WEST JORDAN UT
BS26 10266140771 WORTLEY BARBARA E 2324 OAKLAND STREET AURORA CO
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10266139578 44124 91,500.00 91,357.73 02/01/97 01/01/17 238.00 03/01/97 84.0 11.250 960.07
10266139635 84120 11,469.00 11,465.77 02/06/97 01/06/12 178.22 03/06/97 89.8 12.750 143.23
10266139651 85255 40,000.00 34,530.29 03/01/97 02/01/12 179.00 05/01/97 82.1 12.500 493.01
10266139658 84118 23,785.00 23,785.00 03/01/97 02/01/12 179.00 03/01/97 85.0 12.750 258.47
10266139674 98053 35,750.00 35,750.00 03/01/97 02/01/12 179.00 03/01/97 85.0 12.750 388.49
10266139699 80918 30,000.00 30,000.00 03/01/97 02/01/17 239.00 03/01/97 66.5 11.100 311.70
10266139723 97303 97,500.00 97,500.00 02/01/97 01/01/12 178.00 03/01/97 85.0 13.750 1,135.99
10266139730 80123 37,000.00 37,000.00 03/01/97 02/01/12 179.00 03/01/97 74.8 10.500 338.45
10266139749 84118 43,000.00 42,793.44 02/07/97 01/07/12 178.26 03/07/97 89.4 12.750 537.00
10266139753 84092 64,100.00 64,100.00 03/01/97 02/01/17 239.00 03/01/97 79.8 13.500 773.93
10266139757 80303 48,116.00 48,116.00 03/01/97 02/01/12 179.00 03/01/97 84.9 12.750 600.89
10266139760 97702 20,000.00 20,000.00 03/01/97 02/01/12 179.00 03/01/97 88.0 11.950 239.39
10266139776 44302 54,000.00 53,936.37 02/06/97 01/06/17 238.22 03/06/97 90.0 10.850 551.88
10266139820 60515 42,000.00 41,941.40 02/01/97 01/01/12 178.00 03/01/97 78.5 11.100 480.01
10266139844 60639 48,200.00 48,200.00 01/27/97 12/27/16 237.90 02/27/97 79.9 13.990 599.03
10266139901 80921 20,000.00 20,000.00 03/01/97 02/01/12 179.00 03/01/97 89.9 11.750 236.83
10266139908 80908 48,500.00 48,500.00 03/01/97 02/01/12 179.00 03/01/97 84.9 12.750 605.69
10266139923 80104 53,500.00 53,500.00 03/01/97 02/01/17 239.00 03/01/97 87.3 11.950 587.22
10266139928 97463 30,000.00 30,000.00 03/01/97 02/01/27 359.00 03/01/97 30.3 10.350 271.06
10266139930 87121 58,730.00 58,730.00 03/01/97 02/01/12 179.00 03/01/97 70.0 9.600 498.12
10266139989 80234 23,000.00 23,000.00 03/01/97 02/01/12 179.00 03/01/97 84.7 12.750 249.94
10266139999 81006 35,737.00 35,737.00 03/01/97 02/01/12 179.00 03/01/97 84.9 12.750 388.35
10266140008 89117 45,461.00 45,248.10 03/01/97 02/01/12 179.00 04/01/97 85.0 12.750 494.02
10266140046 84066 20,376.00 20,359.45 02/14/97 01/14/12 178.49 03/14/97 80.6 11.950 243.89
10266140049 84062 34,952.00 34,952.00 01/13/97 12/13/11 177.44 02/13/97 89.8 12.750 379.82
10266140054 80239 104,550.00 104,550.00 03/01/97 02/01/27 359.00 03/01/97 85.0 10.000 917.50
10266140055 80503 55,500.00 55,500.00 03/01/97 02/01/12 179.00 03/01/97 84.9 12.750 603.11
10266140056 95667 38,250.00 38,220.95 02/06/97 01/06/12 178.22 03/06/97 90.0 11.975 392.71
10266140115 60619 49,500.00 49,500.00 02/20/97 01/20/12 178.68 03/20/97 90.0 11.250 480.77
10266140117 60651 57,200.00 57,173.48 02/04/97 01/04/17 238.16 03/04/97 65.0 14.690 740.14
10266140123 48202 36,000.00 36,000.00 02/01/97 01/01/27 358.00 03/01/97 83.7 11.250 349.65
10266140132 80817 30,800.00 30,800.00 03/01/97 02/01/17 239.00 03/01/97 89.8 11.750 333.78
10266140153 84042 54,600.00 54,600.00 02/01/97 01/01/12 178.00 03/01/97 84.9 11.500 540.70
10266140162 97306 19,800.00 19,800.00 03/01/97 02/01/17 239.00 03/01/97 89.9 11.350 209.11
10266140223 80123 22,500.00 22,407.04 03/01/97 02/01/12 179.00 04/01/97 76.9 11.250 259.28
10266140230 84084 35,000.00 34,809.53 01/16/97 12/16/11 177.53 03/16/97 68.3 11.500 408.87
10266140233 84118 14,000.00 13,948.01 01/26/97 12/26/11 177.86 03/26/97 84.6 12.750 174.84
10266140246 80229 46,000.00 45,662.34 03/01/97 02/01/12 179.00 04/01/97 88.9 10.650 512.77
10266140265 80219 26,159.00 25,795.80 03/01/97 02/01/12 179.00 04/01/97 84.8 12.750 326.68
10266140275 11710 44,000.00 43,864.56 02/23/97 01/23/12 178.78 03/23/97 81.9 9.990 472.56
10266140315 84066 18,962.00 18,962.00 02/06/97 01/06/17 238.22 03/06/97 69.9 15.350 254.61
10266140395 84118 40,000.00 39,919.25 02/08/97 01/08/12 178.29 03/08/97 60.7 15.600 576.36
10266140410 80621 65,000.00 65,000.00 03/01/97 02/01/17 239.00 03/01/97 76.6 13.000 761.52
10266140419 95949 31,100.00 31,100.00 03/01/97 02/01/12 179.00 03/01/97 84.7 12.800 339.17
10266140450 84070 30,500.00 30,500.00 02/09/97 01/09/12 178.32 03/09/97 74.6 11.500 356.30
10266140460 94112 26,200.00 26,200.00 03/01/97 02/01/12 179.00 03/01/97 90.0 11.350 256.46
10266140494 98006 21,416.00 21,350.51 03/01/97 02/01/12 179.00 04/01/97 77.0 12.750 267.45
10266140526 80239 21,200.00 21,146.37 03/01/97 02/01/17 239.00 04/01/97 83.0 10.100 205.99
10266140544 84058 11,450.00 11,450.00 03/01/97 02/01/12 179.00 03/01/97 89.9 11.350 132.67
10266140562 85028 39,800.00 39,800.00 03/01/97 02/01/12 179.00 03/01/97 82.7 12.750 432.50
10266140577 11520 90,000.00 89,875.82 02/08/97 01/08/27 358.29 03/08/97 73.1 9.950 786.49
10266140579 11237 100,000.00 99,887.34 02/17/97 01/17/12 178.59 03/17/97 60.6 12.100 1,206.61
10266140607 84043 15,550.00 15,550.00 01/26/97 12/26/11 177.86 02/26/97 78.7 13.700 203.96
10266140623 84111 52,500.00 52,500.00 03/01/97 02/01/27 359.00 03/01/97 70.0 11.000 499.97
10266140661 84123 30,500.00 30,500.00 03/01/97 02/01/12 179.00 03/01/97 84.1 10.500 279.00
10266140684 55448 34,800.00 34,636.63 02/06/97 01/06/12 178.22 04/06/97 79.8 14.750 433.08
10266140699 80401 56,000.00 56,000.00 03/01/97 02/01/12 179.00 03/01/97 84.1 12.750 608.55
10266140716 80106 240,000.00 239,604.14 03/01/97 02/01/27 359.00 04/01/97 80.0 9.850 2,079.62
10266140722 84088 26,754.00 26,754.00 02/01/97 01/01/12 178.00 03/01/97 25.3 13.850 353.60
10266140771 80010 19,000.00 19,000.00 03/01/97 02/01/12 179.00 03/01/97 82.4 10.500 210.03
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 4
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
BS26 10266140773 TALBOT ARDA J 2910 SOUTH 2855 WEST WEST VALLEY CITY UT
BS26 10266140851 ANGLESEY JON M 562 EAST 3550 NORTH NORTH OGDEN UT
BS26 10266140855 SUMMERS STEVEN M 2630 E HELMSDALE DRIVE COLORADO SPRINGS CO
BS26 10266140865 COHEN HERBERT J 10202 98TH STREET SW TACOMA WA
BS26 10266140867 THOMPSON CHRISTINE B 2928 SOUTH WHISPER STREET WEST VALLEY CITY UT
BS26 10266140895 ALVAREZ CESAREO R 3642 WEST 81ST STREET CHICAGO IL
BS26 10266140976 JUHANT BRIAN W 1000 S. MADISON ST. LOCKPORT IL
BS26 10266141032 VAN DER MEIDE JOSEPH R 4495 WEST WALTER CIRCLE WEST VALLEY CITY UT
BS26 10266141036 OLSON TODD J 9420 SOUTH 300 EAST SANDY UT
BS26 10266141088 GRISCHKAN GLORIA 28575 SETTLERS LANE PEPPER PIKE OH
BS26 10266141122 CASTLEBERRY CHARLES A 8364 SOUTH 1330 EAST SANDY UT
BS26 10266141123 OWENS DAN G 11693 SOUTH WILLOW WOOD DRIVE DRAPER UT
BS26 10266141347 MCAFEE CAROLINA R 1136 W 12TH STREET TEMPE AZ
BS26 10266141605 STAYNER CINDY 1029 EAST FAIRCLOUGH DRIVE SALT LAKE CITY UT
BS26 10266141624 RADIGAN THOMAS D 19395 DRACO DRIVE MONUMENT CO
BS26 10266141642 STRAIGIS DEANNA KAY 397 EAST 112TH DRIVE NORTHGLENN CO
BS26 10266141643 POWELL LAWRENCE W 1506 NORTH JACKSON AVENUE LOVELAND CO
BS26 10266141898 HANSEN CARL L 6271 WEST KING VALLEY ROAD WEST VALLEY CITY UT
------------------------------------------------
138 Sale Total
139 Total with Banco Santander
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10266140773 84119 28,300.00 28,300.00 03/01/97 02/01/12 179.00 03/01/97 87.6 11.950 338.74
10266140851 84414 74,000.00 73,853.77 03/01/97 02/01/12 179.00 04/01/97 74.9 11.250 718.73
10266140855 80920 187,200.00 187,200.00 03/01/97 02/01/12 179.00 03/01/97 90.0 11.250 1,818.20
10266140865 98498 26,505.00 26,505.00 03/01/97 02/01/12 179.00 03/01/97 89.9 10.100 234.56
10266140867 84120 25,343.00 25,343.00 03/01/97 02/01/12 179.00 03/01/97 79.9 10.100 224.28
10266140895 60652 15,000.00 15,000.00 02/20/97 01/20/17 238.68 03/20/97 87.9 11.750 162.56
10266140976 60441 37,300.00 37,300.00 03/01/97 02/01/17 239.00 03/01/97 79.9 11.100 387.55
10266141032 84120 19,805.00 19,805.00 02/07/97 01/07/12 178.26 03/07/97 89.2 12.750 247.33
10266141036 84070 25,000.00 24,946.75 02/07/97 01/07/12 178.26 03/07/97 66.2 12.100 301.65
10266141088 44124 172,500.00 172,500.00 02/22/97 01/22/27 358.75 02/22/97 28.7 10.750 1,610.26
10266141122 84093 22,500.00 22,485.91 02/08/97 01/08/12 178.29 03/08/97 84.4 12.750 280.99
10266141123 84020 68,450.00 67,884.66 02/10/97 01/10/12 178.36 04/10/97 89.9 11.950 819.31
10266141347 85281 14,500.00 14,500.00 03/01/97 02/01/12 179.00 03/01/97 88.8 12.350 177.30
10266141605 84106 11,000.00 11,000.00 02/15/97 01/15/12 178.52 03/15/97 60.0 13.850 145.38
10266141624 80132 20,500.00 20,500.00 03/01/97 02/01/12 179.00 03/01/97 84.2 9.800 217.79
10266141642 80233 19,400.00 19,400.00 03/01/97 02/01/12 179.00 03/01/97 79.9 13.000 245.46
10266141643 80538 40,854.00 40,854.00 03/01/97 02/01/12 179.00 03/01/97 89.9 11.750 412.38
10266141898 84128 31,135.00 31,135.00 02/22/97 01/22/12 178.75 02/22/97 69.8 13.850 411.50
---------------------------------- ------- ----------------------------
5,869,386.00 5,854,308.30 221.98 77.9 11.821 63,348.78
6,013,386.00 5,997,243.70 225.06 78.0 11.859 64,986.85
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 5
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
ML684 10266132364 SAUNDERS RICK E 6697 SOUTH NOTTINGHAM DRIVE WEST JORDAN UT
ML684 10266134068 BANKS CHERYL RENEE 626 JOHNSON STREET GARY IN
ML684 10266134253 BURNS CHRISTINE 1218 EAST 72ND PLACE CHICAGO IL
ML684 10266134269 GILLEN MELVIN D 104 MILLER ROAD RIO WI
ML684 10266134546 SIMON PHILIP M 7776 DUTTON ROAD HARBORCREEK PA
ML684 10266135450 JOHNSTON JAN G 8200 HEWLETT RD DUNWOODY GA
ML684 10266135831 MC CARTY LARRY E 847 SAN FRANCISCO BARTLETT IL
ML684 10266136063 WILKERSON HARVEY 1726 S. CARLISLE SOUTH BEND IN
ML684 10266136266 EDENS WILLIAM P 1120 WEST 700 NORTH CLEARFIELD UT
ML684 10266136288 OCKER SHARON 708 SOUTH 10TH AVENUE YAKIMA WA
ML684 10266137051 RUSHDAN AMINA Z 1310 MORTON AVENUE CHESTER PA
ML684 10266137236 HALL JAMES 956 NORTH LAWNDALE CHICAGO IL
ML684 10266137368 KASE KINGDON 6 WESTMINSTER DR VOORHEES NJ
ML684 10266137863 RIEWERTS JACK P 743 ELM STREET REDWOOD CITY CA
ML684 10266137892 SCRIBNER STEVEN W 5874 VALLE VISTA CT LOOMIS CA
ML684 10266137977 PEARCE TROY R 4243 WEST STRATUS STREET KEARNS UT
ML684 10266138058 SANDOVAL JOSEPH H 5650 SOUTH RYAN CIRCLE SALT LAKE CITY UT
ML684 10266138065 HUTCHINSON STEVE L 10276 GOLDEN WILLOW DRIVE SANDY UT
ML684 10266138193 REED KENNETH W 2522 S 28TH ST MILWAUKEE WI
ML684 10266138373 JONES JOHN 5550 W ROSE GARDEN LANE GLENDALE AZ
ML684 10266138484 TALLMAN DONNA E D 14245 SE LEE AVENUE MILWAUKIE OR
ML684 10266138597 SLAYMAKER CLAYTON 265 NORTH COLUMBUS LANE ELK RIDGE UT
ML684 10266138602 LAUTAIMI ESITIMOA 358 NORTH STAR CREST DRIVE SALT LAKE CITY UT
ML684 10266138690 ELEY APRIL L 39339 BLACOW ROAD FREMONT CA
ML684 10266138865 DOERR WANDA GAIL 2020 AND 2022 N. PARKER INDIANAPOLIS IN
ML684 10266138913 WHITE LA TANYA 6216 SOUTH 36TH STREET PHOENIX AZ
ML684 10266139001 RAMIREZ JR FRANK J 1403 BRETMOOR WAY SAN JOSE CA
ML684 10266139002 BROWN R CRAIG 8268 SOUTH 865 EAST SANDY UT
ML684 10266139042 STONE JAMES L 5709 142ND PLACE SE EVERETT WA
ML684 10266139104 PINKSTON JUDITH IRENE 928 NORTH POPLAR STREET SHELBURN IN
ML684 10266139128 DABROWSKI JEANETTE R 351 RIPLEY COURT NAPERVILLE IL
ML684 10266139137 POLHEMUS JEFFREY B 2400 SANDSTROM DRIVE COLUMBUS OH
ML684 10266139199 PURTER SANDRA C 16015 LOTUS DRIVE CLEVELAND OH
ML684 10266139410 MAMURI MILA V 6016 W. MONTROSE AVE. CHICAGO IL
ML684 10266139414 CHRISTOPHERSEN DAVE M 18139 ECHO DRIVE FARMINGTON MN
ML684 10266139415 DEMARRE NANCY L 3029 RICE STREET ROSEVILLE MN
ML684 10266139420 MILES HAROLD J R 833 ADAMS AVENUE EVANSVILLE IN
ML684 10266139482 WILEY NEWTON D 20 WILKIE AVENUE WATSONVILLE CA
ML684 10266139547 DANIELS MARK A 9235 DOVER WAY BROOMFIELD CO
ML684 10266139591 SCANLAN JO ANN J 3600 NORTH WAYNE CHICAGO IL
ML684 10266139606 HAMMOND GARY A 1624 E. 34TH STREET LORAIN OH
ML684 10266139611 DRAPER HARRISON K 66635 PONDEROSA LOOP BEND OR
ML684 10266139621 ZANOCCO FRED 607 SEARLS AVENUE NEVADA CITY CA
ML684 10266139641 JORGENSON LYLE D 436 NORTH 150 EAST LINDON UT
ML684 10266139652 LARSEN JEFFERY DEAN 1134 WEST PALM LANE PHOENIX AZ
ML684 10266139692 JENSEN MARK E 725 NORTH 98TH STREET SEATTLE WA
ML684 10266139708 RHYNEER ROBERT D 1741-42 S CLEARVIEW AVENUE MESA AZ
ML684 10266139719 BIRD MICHAEL TODD 5830 SOUTH KYLE DRIVE SALT LAKE CITY UT
ML684 10266139738 HUNGER DOUGLAS D 820 EAST WESTBROOK ROAD KAYSVILLE UT
ML684 10266139740 PETRY CAROLE N 3575 EAST CERES DRIVE SALT LAKE CITY UT
ML684 10266139762 ORTEGA EDUARDO 1519 SQUIRRELTAIL DRIVE SPARKS NV
ML684 10266139836 ETZKORN KAREN 607 PORTER STREET LEMONT IL
ML684 10266139859 TRUESDILL MICHAEL P 1061 SOUTH PEARL STREET JANESVILLE WI
ML684 10266139876 HAMILTON MARIE L 230 E. BORLEY MISHAWAKA IN
ML684 10266139904 SMITH THAYNE A 1797 SOUTH CALIFORNIA AVENUE PROVO UT
ML684 10266139975 CLARK DONALD L 1915 MASSACHUSETTS LANSING MI
ML684 10266140039 BRADFORD MARVIN 15701 LINDSAY DETROIT MI
ML684 10266140052 FREDRICKSON ALAN C 1745 NORTH 600 WEST LEHI UT
ML684 10266140058 KRATZER GEORGE R JR 1338 23RD LANE PUEBLO CO
ML684 10266140139 BARTON LEE R 1026 NORTH ALVARO MESA AZ
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10266132364 84084 28,250.00 28,250.00 02/01/97 01/01/12 178.00 03/01/97 79.3 11.500 330.02
10266134068 46402 35,000.00 35,000.00 02/23/97 01/23/17 238.78 03/23/97 70.0 12.000 385.38
10266134253 60619 18,000.00 17,875.80 12/05/96 11/05/16 236.19 04/05/97 32.7 10.600 180.92
10266134269 53960 102,700.00 102,462.88 12/08/96 11/08/11 176.28 03/08/97 84.9 12.250 1,249.14
10266134546 16421 94,500.00 93,900.18 12/04/96 11/04/16 236.15 04/04/97 90.0 11.450 1,004.52
10266135450 30338 43,000.00 42,990.49 12/01/96 11/01/11 176.00 03/01/97 84.8 13.150 480.71
10266135831 60103 39,000.00 39,000.00 02/13/97 01/13/17 238.45 02/13/97 30.2 14.000 484.97
10266136063 46613 31,200.00 31,070.23 12/01/96 11/01/11 176.00 04/01/97 80.0 13.500 357.37
10266136266 84015 52,419.00 52,419.00 02/01/97 01/01/12 178.00 03/01/97 84.7 13.300 592.18
10266136288 98902 11,682.00 11,652.61 12/26/96 11/26/11 176.88 02/26/97 79.9 13.990 155.50
10266137051 19013 40,000.00 40,000.00 03/01/97 02/01/27 359.00 03/01/97 80.0 10.500 365.90
10266137236 60651 64,500.00 64,376.44 02/01/97 01/01/12 178.00 03/01/97 75.0 11.500 753.48
10266137368 8043 27,000.00 26,902.59 02/17/97 01/17/07 118.59 03/17/97 89.9 12.750 399.17
10266137863 94063 23,000.00 23,000.00 02/01/97 01/01/12 178.00 03/01/97 87.2 12.750 249.94
10266137892 95650 100,000.00 99,738.13 01/01/97 12/01/11 177.00 04/01/97 79.1 11.500 990.29
10266137977 84118 21,200.00 21,130.37 02/01/97 01/01/12 178.00 04/01/97 89.9 13.150 237.00
10266138058 84118 30,388.00 30,276.34 01/04/97 12/04/11 177.14 04/04/97 89.8 13.150 339.72
10266138065 84070 48,600.00 48,600.00 03/01/97 02/01/17 239.00 03/01/97 79.8 14.950 638.17
10266138193 53215 25,100.00 24,996.70 02/17/97 01/17/12 178.59 03/17/97 90.0 11.750 297.22
10266138373 85308 63,369.00 63,369.00 02/07/97 01/07/12 178.26 03/07/97 89.9 12.600 785.17
10266138484 97267 44,390.00 44,215.08 03/01/97 02/01/12 179.00 04/01/97 84.3 9.900 474.31
10266138597 84651 31,000.00 31,000.00 02/01/97 01/01/12 178.00 03/01/97 80.0 14.950 390.74
10266138602 84116 27,651.00 27,609.52 03/01/97 02/01/12 179.00 04/01/97 78.7 13.990 327.41
10266138690 94538 100,000.00 99,765.25 03/01/97 02/01/12 179.00 04/01/97 43.1 11.550 994.11
10266138865 46218 21,700.00 21,700.00 03/03/97 02/03/17 239.15 03/03/97 74.8 13.250 258.11
10266138913 85040 36,250.00 36,199.05 02/27/97 01/27/17 238.92 03/27/97 75.0 12.800 419.54
10266139001 95129 150,000.00 150,000.00 03/01/97 02/01/12 179.00 03/01/97 75.9 11.000 1,428.49
10266139002 84094 22,500.00 22,189.69 02/01/97 01/01/12 178.00 05/01/97 90.0 13.150 251.54
10266139042 98208 85,500.00 85,500.00 04/01/97 03/01/12 180.00 04/01/97 84.2 12.750 929.12
10266139104 47879 22,500.00 22,467.53 02/10/97 01/10/12 178.36 03/10/97 54.8 14.000 266.60
10266139128 60565 23,800.00 23,783.00 02/27/97 01/27/17 238.92 03/27/97 84.9 12.750 274.61
10266139137 43235 47,900.00 47,900.00 02/27/97 01/27/17 238.92 02/27/97 85.4 11.500 510.82
10266139199 44128 25,000.00 24,994.28 02/09/97 01/09/12 178.32 03/09/97 39.0 12.990 276.35
10266139410 60634 45,500.00 45,500.00 02/27/97 01/27/27 358.92 02/27/97 35.5 11.750 459.28
10266139414 55024 27,000.00 26,955.64 02/27/97 01/27/12 178.92 03/27/97 89.4 11.350 312.84
10266139415 55113 18,000.00 18,000.00 02/06/97 01/06/12 178.22 03/06/97 89.3 11.750 213.14
10266139420 47713 55,600.00 55,600.00 02/14/97 01/14/27 358.49 03/14/97 84.8 9.850 481.78
10266139482 95076 37,000.00 36,805.43 02/03/97 01/03/12 178.13 04/03/97 84.4 13.550 481.61
10266139547 80021 12,150.00 12,150.00 03/10/97 02/10/12 179.38 03/10/97 82.5 11.900 145.04
10266139591 60613 45,000.00 44,978.18 02/13/97 01/13/12 178.45 03/13/97 40.2 11.100 514.30
10266139606 44052 48,000.00 48,000.00 03/01/97 02/01/17 239.00 03/01/97 80.0 13.500 579.54
10266139611 97701 44,000.00 44,000.00 02/01/97 01/01/12 178.00 03/01/97 66.3 12.800 550.93
10266139621 95959 53,000.00 52,994.63 02/28/97 01/28/12 178.95 03/28/97 89.6 11.975 544.15
10266139641 84042 15,444.00 15,425.32 02/24/97 01/24/12 178.82 03/24/97 79.9 15.350 219.87
10266139652 85007 40,000.00 39,907.18 03/01/97 02/01/12 179.00 04/01/97 80.1 11.250 388.50
10266139692 98103 35,054.00 35,054.00 03/01/97 02/01/12 179.00 03/01/97 90.0 11.750 353.84
10266139708 85208 18,000.00 18,000.00 02/01/97 01/01/12 178.00 03/01/97 89.5 12.750 224.80
10266139719 84118 25,000.00 25,000.00 01/10/97 12/10/11 177.34 03/10/97 74.0 15.350 355.91
10266139738 84037 21,405.00 21,350.47 02/01/97 01/01/12 178.00 04/01/97 90.0 13.150 239.29
10266139740 84124 49,750.00 49,750.00 04/01/97 03/01/12 180.00 04/01/97 79.9 12.250 521.33
10266139762 89436 28,316.00 28,316.00 03/01/97 02/01/17 239.00 03/01/97 89.7 11.350 299.05
10266139836 60439 94,000.00 94,000.00 02/22/97 01/22/27 358.75 02/22/97 75.2 10.250 842.34
10266139859 53546 25,100.00 25,068.18 02/27/97 01/27/12 178.92 03/27/97 80.0 13.000 317.58
10266139876 46545 55,000.00 54,999.26 02/13/97 01/13/12 178.45 03/13/97 77.4 10.000 482.66
10266139904 84606 40,600.00 40,600.00 04/01/97 03/01/12 180.00 04/01/97 84.7 12.750 441.20
10266139975 48906 41,200.00 41,096.84 02/27/97 01/27/12 178.92 03/27/97 74.9 10.600 379.96
10266140039 48227 52,400.00 52,165.80 01/26/97 12/26/11 177.86 03/26/97 74.8 12.000 538.99
10266140052 84043 51,100.00 51,100.00 03/01/97 02/01/12 179.00 03/01/97 89.9 11.750 515.81
10266140058 81006 28,400.00 28,400.00 03/01/97 02/01/12 179.00 03/01/97 89.9 11.750 286.67
10266140139 85205 23,245.00 23,245.00 03/01/97 02/01/12 179.00 03/01/97 85.7 11.750 234.64
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 6
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
ML684 10266140140 HARRISON JONATHAN W 1276 NORTH 540 WEST OREM UT
ML684 10266140145 DANN JAMES T 9472 CLEMENTINE WAY ELK GROVE CA
ML684 10266140163 LEWIS KERRY G 795 SOUTH LOCUST AVENUE PLEASANT GROVE UT
ML684 10266140186 DE LOS REYES NELLY D 141 TOMLIN CIRCLE BURR RIDGE IL
ML684 10266140206 MALDONADO BONITA 3548 S EUCLID AVENUE BERWYN IL
ML684 10266140229 DAVIS ANITA L 19410 NORTH 31ST WAY PHOENIX AZ
ML684 10266140254 WALKER ROY M 12324 WITLAND LANE SE YELM WA
ML684 10266140271 VALDEZ ROBERT J 852 1600 ROAD DELTA CO
ML684 10266140278 KUSMERZ ROBERT P 22 GOLFVIEW LANE CARPENTERSVILLE IL
ML684 10266140282 WOOD JR ALFRED GENE 2046 GRANT DOWNERS GROVE IL
ML684 10266140309 BECK BRANDON 2779 WEST 5500 SOUTH ROY UT
ML684 10266140330 MARTIN SHAWN S 2805 STEPHENS ROAD BOULDER CO
ML684 10266140353 WALTERS JOHN J 524 SOUTH STREET LOCKPORT IL
ML684 10266140385 SHINER WILLIAM ANDY 310 NORTH 100 EAST ELSINORE UT
ML684 10266140411 LOOSE TERRY A 1434 CORTE DE ROSA SAN JOSE CA
ML684 10266140461 PAYTON ARTHUR R 855 NORTH EASTWOOD DRIVE PRICE UT
ML684 10266140476 FANNING JR LOUIS A 9111 SOUTH ROUNDTREE DRIVE HIGHLANDS RANCH CO
ML684 10266140523 PALMENTERA MARY ANNE 7373 ALBION ROAD NORTH ROYALTON OH
ML684 10266140546 MILHEM BRENDA 5200 SW SCHOLLS FERRY ROAD PORTLAND OR
ML684 10266140548 GRAHAM SCOTT DENNIS 933 N GRENNAN PLACE CAMANO ISLAND WA
ML684 10266140601 PAGE DALE J 4561-63 N. 76TH STREET MILWAUKEE WI
ML684 10266140608 PENOYER ROBERT L 140 NORTH UNIVERSITY BLACKFOOT ID
ML684 10266140624 FINCH PAUL R 8053 SE 60TH AVENUE PORTLAND OR
ML684 10266140642 PIPPIN WILLIAM 1071 S MCCULLOCH BLVD LAKE HAVASU CITY AZ
ML684 10266140647 MAYES MICHAEL F 11001 S BANNOCK STREET PHOENIX AZ
ML684 10266140651 LADZINSKI JOSEPH A 4220 THOREAU DRIVE COLORADO SPRINGS CO
ML684 10266140653 PERKINS DOTTIE LOU 5309 WEST LEWISCLARK DRIVE SALT LAKE CITY UT
ML684 10266140656 MERRITT RUTH A 4084 WEST JENNY LAKE DRIVE WEST JORDAN UT
ML684 10266140663 MADERO PETER A 466 LEWIS STREET HOLBROOK NY
ML684 10266140679 MACK MICHAEL G 357 PHILLIPS GLEN ELLYN IL
ML684 10266140768 HODGES MICHAEL J 1291 WEST WHITTEN STREET CHANDLER AZ
ML684 10266140777 LIANZO JOSEPH 4495 N CHIEFTAIN STREET LAS VEGAS NV
ML684 10266140784 THORNBERG LOUANN M 20470 IBERIA AVENUE WEST LAKEVILLE MN
ML684 10266140792 MURZANSKI MARY B 3308 N. HOYNE AVENUE CHICAGO IL
ML684 10266140797 HAWKINS GERARD B 200 TULIP COURT SCHAUMBURG IL
ML684 10266140799 HOGAN RICHARD E 1826 NORTH HONORE STREET CHICAGO IL
ML684 10266140809 WILLIAMS ELIZABETH 8642 SOUTH WOOD CHICAGO IL
ML684 10266140810 JEZEK JOSEPH F 0N420 VIRGINIA WINFIELD IL
ML684 10266140814 YOUNG WALTER C 2505 SOUTH 11TH AVE. BROADVIEW IL
ML684 10266140874 LASHBAUGH DANA L 4321 SOUTH 263RD STREET KENT WA
ML684 10266140878 YANG ALBERT 939 PROVIDENCE COURT CUPERTINO CA
ML684 10266140944 AUSMAN JEFFREY E 900 TAPADERO ROAD BAILEY CO
ML684 10266140945 CUNDICK DAVID C 2701 EAST WILSHIRE DRIVE SALT LAKE CITY UT
ML684 10266140948 WILSON HARRY H 7 LOS CHAVEZ LOOP BELEN NM
ML684 10266140954 KULP HEATHER 3748 MACBETH DRIVE SAN JOSE CA
ML684 10266140960 ANDREWS WAYNE D 12157 WEST 66TH AVENUE ARVADA CO
ML684 10266140967 DEROSIER DANIEL R 484 LITTLE PATH ROAD DES PLAINES IL
ML684 10266140970 BARNES ROBERT L 1309 E 156TH ST SOUTH HOLLAND IL
ML684 10266140973 TWYMON STEVEN B 557 BENSLEY CALUMET CITY IL
ML684 10266141008 PARRISH DENNIS D 183 ABBEY ROAD NOBLESVILLE IN
ML684 10266141020 SORENSEN WAYNE J 958 EAST 70 SOUTH LINDON UT
ML684 10266141033 YOUNG F STEVEN 1686 SOUTH 165 WEST OREM UT
ML684 10266141037 VANDYKE MICHAEL J 9525 WEST 11TH AVENUE LAKEWOOD CO
ML684 10266141071 FORBUSH LYNDA L 1472 SOUTH 900 EAST SALT LAKE CITY UT
ML684 10266141082 MOORE THOMAS 9703 BESSEMER AVENUE CLEVELAND OH
ML684 10266141115 KLOPFENSTEIN NORVEL D 1660 PARTRIDGE COURT STAYTON OR
ML684 10266141135 HOPKINS DON 9292 COUNTY ROAD 213 DURANGO CO
ML684 10266141150 VU HOANG D 2430 PACIFIC STREET BELLINGHAM WA
ML684 10266141184 AVINO RALPH A 816 GARDNER WESTCHESTER IL
ML684 10266141197 LEWIS LADELL 19305 DEAN DETROIT MI
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10266140140 84057 53,000.00 53,000.00 03/01/97 02/01/17 239.00 03/01/97 89.0 11.350 559.74
10266140145 95758 35,000.00 35,000.00 03/01/97 02/01/12 179.00 03/01/97 77.3 11.350 342.60
10266140163 84062 45,100.00 44,313.26 03/01/97 02/01/12 179.00 05/01/97 64.7 11.950 462.17
10266140186 60521 53,700.00 53,676.68 02/20/97 01/20/17 238.68 03/20/97 82.6 12.350 604.44
10266140206 60402 20,000.00 20,000.00 03/01/97 02/01/17 239.00 03/01/97 50.0 10.850 204.40
10266140229 85024 111,966.00 111,966.00 04/01/97 03/01/12 180.00 04/01/97 79.9 10.750 1,045.18
10266140254 98597 29,256.00 29,256.00 04/01/97 03/01/12 180.00 04/01/97 70.0 12.450 311.10
10266140271 81416 33,500.00 33,500.00 03/01/97 02/01/12 179.00 03/01/97 79.4 10.100 362.05
10266140278 60110 19,100.00 19,100.00 03/03/97 02/03/17 239.15 03/03/97 84.9 12.350 214.99
10266140282 60515 109,600.00 109,113.51 03/01/97 02/01/12 179.00 04/01/97 80.0 10.600 1,218.32
10266140309 84067 12,750.00 12,720.79 01/18/97 12/18/11 177.60 03/18/97 89.9 12.750 159.23
10266140330 80303 73,825.00 73,825.00 04/01/97 03/01/12 180.00 04/01/97 79.9 13.200 943.80
10266140353 60441 28,000.00 27,978.02 02/24/97 01/24/12 178.82 03/24/97 76.2 13.500 363.53
10266140385 84724 11,000.00 11,000.00 03/01/97 02/01/12 179.00 03/01/97 84.1 13.350 124.70
10266140411 95120 48,500.00 48,500.00 03/01/97 02/01/12 179.00 03/01/97 89.8 11.350 474.75
10266140461 84501 16,500.00 16,500.00 04/01/97 03/01/12 180.00 04/01/97 65.3 12.500 203.37
10266140476 80126 113,150.00 113,150.00 03/01/97 02/01/12 179.00 03/01/97 89.7 11.950 1,159.52
10266140523 44133 106,200.00 106,200.00 02/14/97 01/14/12 178.49 02/14/97 84.9 11.850 1,080.14
10266140546 97225 36,600.00 36,600.00 03/01/97 02/01/17 239.00 03/01/97 79.9 13.500 441.90
10266140548 98292 39,000.00 39,000.00 04/01/97 03/01/12 180.00 04/01/97 84.9 12.450 414.72
10266140601 53218 81,900.00 81,900.00 03/01/97 02/01/12 179.00 03/01/97 90.0 11.250 943.77
10266140608 83221 27,500.00 26,711.92 01/26/97 12/26/11 177.86 05/26/97 80.8 12.250 334.48
10266140624 97206 22,000.00 22,000.00 04/01/97 03/01/12 180.00 04/01/97 89.4 11.950 225.45
10266140642 86406 11,342.00 11,303.34 03/01/97 02/01/12 179.00 04/01/97 84.5 12.350 138.69
10266140647 85044 12,950.00 12,950.00 04/01/97 03/01/12 180.00 04/01/97 83.1 10.200 140.75
10266140651 80916 19,900.00 19,900.00 04/01/97 03/01/17 240.00 04/01/97 89.6 11.950 218.42
10266140653 84118 24,000.00 24,000.00 03/04/97 02/04/12 179.18 03/04/97 79.8 15.350 310.19
10266140656 84088 47,400.00 47,400.00 03/01/97 02/01/12 179.00 03/01/97 79.9 13.000 524.34
10266140663 11741 23,200.00 23,200.00 03/12/97 02/12/07 119.44 03/12/97 81.0 10.500 313.05
10266140679 60137 33,100.00 33,100.00 02/08/97 01/08/17 238.29 02/08/97 79.9 14.000 411.61
10266140768 85224 18,747.00 18,747.00 04/01/97 03/01/12 180.00 04/01/97 85.0 12.350 229.23
10266140777 89129 75,020.00 75,020.00 03/01/97 02/01/12 179.00 03/01/97 79.6 13.500 974.00
10266140784 55044 26,000.00 25,979.49 02/24/97 01/24/17 238.82 03/24/97 83.0 12.350 292.65
10266140792 60618 52,000.00 51,742.78 03/01/97 02/01/12 179.00 04/01/97 87.8 11.750 524.89
10266140797 60193 34,100.00 34,100.00 02/15/97 01/15/17 238.52 03/15/97 79.9 14.000 424.04
10266140799 60622 301,600.00 301,600.00 03/03/97 02/03/27 359.15 03/03/97 80.0 12.750 3,277.47
10266140809 60620 48,700.00 48,518.13 02/23/97 01/23/17 238.78 03/23/97 74.9 11.500 519.35
10266140810 60190 77,500.00 77,472.04 02/27/97 01/27/17 238.92 03/27/97 82.1 12.750 894.20
10266140814 60153 36,800.00 36,685.36 02/17/97 01/17/17 238.59 03/17/97 89.9 11.750 398.80
10266140874 98032 21,500.00 21,500.00 04/01/97 03/01/12 180.00 04/01/97 87.1 11.750 254.59
10266140878 95014 109,000.00 108,371.01 03/01/97 02/01/12 179.00 04/01/97 85.0 12.950 1,201.50
10266140944 80421 79,750.00 79,750.00 03/01/97 02/01/12 179.00 03/01/97 89.9 11.750 805.00
10266140945 84109 34,000.00 34,000.00 04/01/97 03/01/12 180.00 04/01/97 78.6 13.000 430.18
10266140948 87002 85,500.00 85,500.00 04/01/97 03/01/27 360.00 04/01/97 90.0 10.850 804.56
10266140954 95127 55,000.00 55,000.00 03/01/97 02/01/12 179.00 03/01/97 72.9 12.050 567.85
10266140960 80004 46,641.00 46,641.00 04/01/97 03/01/12 180.00 04/01/97 90.0 11.450 460.10
10266140967 60016 141,600.00 141,600.00 03/01/97 02/01/27 359.00 03/01/97 80.0 9.950 1,237.41
10266140970 60473 23,100.00 23,100.00 03/01/97 02/01/12 179.00 03/01/97 89.9 11.750 273.53
10266140973 60409 24,000.00 24,000.00 03/01/97 02/01/17 239.00 03/01/97 89.9 11.750 260.09
10266141008 46060 47,300.00 47,300.00 03/01/97 02/01/12 179.00 03/01/97 85.2 12.750 590.70
10266141020 84042 57,477.00 57,110.90 03/01/97 02/01/12 179.00 04/01/97 89.0 11.750 680.60
10266141033 84058 28,000.00 28,000.00 02/07/97 01/07/12 178.26 03/07/97 89.8 12.750 304.27
10266141037 80215 47,500.00 47,500.00 03/01/97 02/01/12 179.00 03/01/97 79.8 11.100 542.87
10266141071 84105 69,000.00 68,831.32 03/01/97 02/01/12 179.00 04/01/97 88.1 12.350 728.39
10266141082 44104 36,800.00 36,800.00 03/05/97 02/05/27 359.21 03/05/97 80.0 13.450 420.06
10266141115 97383 28,000.00 28,000.00 04/01/97 03/01/12 180.00 04/01/97 84.9 12.750 304.27
10266141135 81301 276,000.00 276,000.00 03/01/97 02/01/12 179.00 03/01/97 80.0 10.600 2,545.34
10266141150 98226 37,783.00 37,589.02 03/01/97 02/01/12 179.00 04/01/97 84.9 12.450 464.46
10266141184 60154 20,000.00 20,000.00 03/10/97 02/10/12 179.38 03/10/97 70.6 10.100 216.15
10266141197 48234 28,900.00 28,900.00 03/01/97 02/01/12 179.00 03/01/97 85.0 10.000 310.56
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 7
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
ML684 10266141208 ROSA ANITA 6824 NORTH CENTRAL AVENUE CHICAGO IL
ML684 10266141226 SAYVETZ ROY N 5527 SW POINT ROBINSON ROAD VASHON WA
ML684 10266141269 FISHER MATTHEW 235 SOUTH 400 WEST SALEM UT
ML684 10266141271 IMBACH WILLIAM A III 4387 WITTER GULCH ROAD EVERGREEN CO
ML684 10266141282 LIVINGSTON JOSEPH F 2020 W. WARNER CHICAGO IL
ML684 10266141302 CORRADIN THOMAS 9119 WESTWOOD DRIVE ORLAND HILLS IL
ML684 10266141309 GERSTENSLAGER BRIAN 2412 19TH STREET, N.W. CANTON OH
ML684 10266141322 SCHINTZ DONALD T 14687 DOMINICA COURT APPLE VALLEY MN
ML684 10266141323 AICHELE KRISTEN 8578 JAGGED ROCK COURT INDIANAPOLIS IN
ML684 10266141380 HANSEN REED S 137 NORTH 550 EAST LINDON UT
ML684 10266141390 QUEST DEBORA GALE 1239 KINNIKINNICK COURT LONGMONT CO
ML684 10266141400 SENATORE MISTI M 13572 HARRISON STREET THORNTON CO
ML684 10266141423 YOUSHOCK RAYMOND P 5313 NADIA COURT LAS VEGAS NV
ML684 10266141457 VELEZ SANTOS I 2226 N KEATING AVENUE CHICAGO IL
ML684 10266141483 SMITH LOIS J 7125 SOUTH HONORE CHICAGO IL
ML684 10266141533 MCCAY LINDA M R 3494 WEST 3100 SOUTH WEST VALLEY CITY UT
ML684 10266141539 SNIDER DONALD JR 12293 WEST SARATOGA AVENUE MORRISON CO
ML684 10266141577 DAY PATRICK R 39386 RENA AVENUE ANTIOCH IL
ML684 10266141581 RECENDEZ JOSEPH C 15957 LOUIS AVE. SOUTH HOLLAND IL
ML684 10266141604 SPEAKMAN THOMAS N 155 RAILROAD STREET STOCKTON UT
ML684 10266141622 REED LYNN J 10138 NORTH PINION DRIVE CEDAR HILLS UT
ML684 10266141708 POLUGAR DAVID S 3350 HONEYBURL DRIVE COLORADO SPRINGS CO
ML684 10266141715 SANCHEZ ELSIE E 622 DAHLIA WAY LOUISVILLE CO
ML684 10266141793 ROBERTS LAURIE D 2208 WEST 2600 NORTH FARR WEST UT
ML684 10266141794 TOLLEY JAMES DOUGLAS 129 SOUTH WILLOW STREET GRANTSVILLE UT
ML684 10266141838 ROFFMANN RICHARD A 303 E NORTH STREET CROWN POINT IN
ML684 10266141853 JAMISON JIMMIE L 1616 ST. CHARLES RD MAYWOOD IL
ML684 10266141966 JAVIER PROCERFINA R 566 MARSHALL DRIVE DES PLAINES IL
ML684 10266142018 VIGIL NICHOLAS M 1205 BENTON STREET LAKEWOOD CO
ML684 10266142019 OWEN MARK THOMAS 908 EAST 11325 SOUTH SANDY UT
ML684 10266142040 DICENZO JOSE T 379 EAST 300 NORTH PLEASANT GROVE UT
ML684 10266142069 VEYSADA LORILEE K 4141 SOUTH ELMWOOD AVENUE STICKNEY IL
ML684 10266142122 RUMPELL LEON N 145 CHILDE DRIVE COLORADO SPRINGS CO
ML684 10266142129 DADIOTI DEMETRIOS JAMES P 1289 CLAYTON STREET DENVER CO
ML684 10266142131 THOMPSON JEFFRIETTA 4717 ROUGE ROAD LAS VEGAS NV
ML684 10266142147 CACCESE ROBERT A 1000 DELMAR DRIVE LAUREL NY
ML684 10266142288 KELLEY MICHAEL 5310 SOUTH 2375 WEST ROY UT
ML684 10266142331 YOUKHANA KENNY 3833 WEST JARVIS AVENUE LINCOLNWOOD IL
ML684 10266142375 WELLER TERRY L 795 EAST BIRCH STREET CLEARFIELD UT
ML684 10266142632 PIERCE ANTHONY L 5520 226TH AVENUE BETHEL MN
ML684 10266142656 HANSON CLINT W 1194 EAST PHEASANT VIEW DRIVE LAYTON UT
ML684 10266142657 STRINGER ROY L 6652 SOUTH GOLDEN GATE CIRCLE WEST JORDAN UT
ML684 10266142673 BAGGETT WILLIAM JR 10351 EAST EVANS AVENUE #164 DENVER CO
ML684 10266142725 NEY LARRY 692 SOUTH IDAHO AVENUE PROVO UT
ML684 10266142737 GREEN ALBERT F 4985 ZUNI STREET DENVER CO
------------------------------------------------
165 Sale Total
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10266141208 60646 104,000.00 104,000.00 03/03/97 02/03/17 239.15 03/03/97 79.9 14.000 1,293.26
10266141226 98070 45,000.00 45,000.00 03/01/97 02/01/12 179.00 03/01/97 90.0 10.800 421.76
10266141269 84653 26,576.00 26,576.00 04/01/97 03/01/12 180.00 04/01/97 79.9 13.500 345.04
10266141271 80439 113,184.00 113,184.00 04/01/97 03/01/17 240.00 04/01/97 84.7 12.450 1,281.94
10266141282 60618 23,000.00 22,875.29 03/01/97 02/01/17 239.00 04/01/97 79.9 13.500 277.70
10266141302 60477 32,000.00 32,000.00 03/03/97 02/03/12 179.15 03/03/97 84.9 12.750 399.63
10266141309 44708 12,500.00 12,500.00 03/01/97 02/01/12 179.00 03/01/97 22.3 13.700 145.15
10266141322 55124 25,700.00 25,700.00 03/05/97 02/05/12 179.21 03/05/97 89.8 12.750 279.28
10266141323 46256 99,300.00 99,292.36 02/14/97 01/14/12 178.49 03/14/97 84.9 12.250 1,040.56
10266141380 84042 80,000.00 80,000.00 04/01/97 03/01/12 180.00 04/01/97 75.8 11.250 921.88
10266141390 80501 10,500.00 10,500.00 04/01/97 03/01/12 180.00 04/01/97 89.9 11.750 105.99
10266141400 80241 36,774.00 36,684.36 03/01/97 02/01/12 179.00 04/01/97 80.0 12.350 388.20
10266141423 89108 71,700.00 71,700.00 04/01/97 03/01/12 180.00 04/01/97 84.5 12.250 751.34
10266141457 60639 42,500.00 42,500.00 02/28/97 01/28/17 238.95 02/28/97 89.9 11.750 460.58
10266141483 60636 48,700.00 48,700.00 03/01/97 02/01/12 179.00 03/01/97 74.9 12.000 584.48
10266141533 84119 23,612.00 23,572.56 02/14/97 01/14/12 178.49 03/14/97 90.0 12.750 294.88
10266141539 80465 44,000.00 44,000.00 03/01/97 02/01/12 179.00 03/01/97 71.1 13.990 521.00
10266141577 60002 68,600.00 68,600.00 03/07/97 02/07/27 359.28 03/07/97 70.0 9.850 594.42
10266141581 60473 40,000.00 39,961.36 02/27/97 01/27/17 238.92 03/27/97 72.0 11.100 415.60
10266141604 84071 25,219.00 25,219.00 02/15/97 01/15/12 178.52 03/15/97 81.1 11.950 301.86
10266141622 84062 35,000.00 35,000.00 04/01/97 03/01/12 180.00 04/01/97 88.4 10.500 386.89
10266141708 80918 23,270.00 23,270.00 04/01/97 03/01/17 240.00 04/01/97 89.8 11.750 252.18
10266141715 80027 53,698.00 53,698.00 04/01/97 03/01/12 180.00 04/01/97 84.9 11.100 515.44
10266141793 84404 23,350.00 23,319.78 02/17/97 01/17/12 178.59 03/17/97 76.5 11.500 272.77
10266141794 84209 18,863.00 18,863.00 02/14/97 01/14/12 178.49 03/14/97 81.7 13.350 243.02
10266141838 46307 50,000.00 49,781.79 03/05/97 02/05/17 239.21 04/05/97 51.5 11.500 533.21
10266141853 60153 64,800.00 64,800.00 03/01/97 02/01/12 179.00 03/01/97 90.0 10.850 730.42
10266141966 60016 28,500.00 28,500.00 03/01/97 02/01/17 239.00 03/01/97 89.8 11.350 300.99
10266142018 80214 25,000.00 25,000.00 04/01/97 03/01/12 180.00 04/01/97 89.9 11.350 244.72
10266142019 84094 136,800.00 136,800.00 04/01/97 03/01/27 360.00 04/01/97 87.1 11.250 1,328.69
10266142040 84062 19,500.00 19,500.00 04/01/97 03/01/12 180.00 04/01/97 86.3 11.750 196.83
10266142069 60402 35,800.00 35,800.00 03/01/97 02/01/17 239.00 03/01/97 79.9 13.000 419.42
10266142122 80906 50,000.00 50,000.00 04/01/97 03/01/17 240.00 04/01/97 78.2 11.250 524.63
10266142129 80206 46,436.00 46,436.00 04/01/97 03/01/12 180.00 04/01/97 84.9 12.350 490.19
10266142131 89130 32,100.00 32,100.00 04/01/97 03/01/12 180.00 04/01/97 89.4 11.450 373.97
10266142147 11948 66,600.00 66,600.00 03/13/97 02/13/12 179.47 03/13/97 77.6 10.750 746.55
10266142288 84067 11,000.00 11,000.00 02/27/97 01/27/12 178.92 02/27/97 89.5 12.750 137.37
10266142331 60645 117,200.00 117,200.00 03/14/97 02/14/12 179.51 03/14/97 84.9 10.100 1,037.19
10266142375 84015 18,000.00 17,863.13 02/28/97 01/28/12 178.95 03/28/97 78.2 12.750 224.79
10266142632 55005 48,400.00 48,400.00 03/05/97 02/05/12 179.21 03/05/97 89.8 12.750 525.96
10266142656 84041 26,373.00 26,373.00 03/03/97 02/03/12 179.15 03/03/97 87.1 12.750 329.36
10266142657 84084 68,000.00 68,000.00 03/04/97 02/04/27 359.18 03/04/97 66.0 13.350 770.86
10266142673 80231 30,400.00 30,400.00 04/01/97 03/01/12 180.00 04/01/97 89.4 11.350 297.57
10266142725 84606 14,500.00 14,363.55 03/01/97 02/01/12 179.00 04/01/97 89.9 12.750 181.08
10266142737 80221 37,100.00 37,100.00 04/01/97 03/01/12 180.00 04/01/97 89.9 11.750 439.31
----------------------------------- -------- ----------------------------
7,886,275.00 7,877,751.80 214.02 80.5 11.945 85,520.04
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 8
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MLC685 10268000429 MOQUIN EUGENE M 190 DOBSON ST BRIDGEPORT CT
MLC685 10268000835 DICKEY CECELIA 4936 GREENCREST ROAD BALTIMORE MD
MLC685 10268001770 GRIFFIN KATHLEEN D 10 HOLDEN LN BAYVILLE NY
MLC685 10268002992 RASHID ABDUL 33-43 75TH STREET JACKSON HEIGHTS NY
MLC685 10268003203 VALJIN ALBINA 18815 RIO DR HOLLISWOOD NY
MLC685 10268003388 YOUNG PHILIP 38 OLD BARN LANE SAGAPONACK NY
MLC685 10268003539 ERRICO JERRY V 34 WOODCREST TERRACE AMAWALK NY
MLC685 10268003542 SANTIAGO JIMMY 2495 TRELAWN ST YORKTOWN HEIGHTS NY
MLC685 10268003891 EAGER WILLIAM B 7 PLEASANT DR NORTH HAVEN CT
MLC685 10268003989 BENEZRY RONIT 680 BROADWAY STATEN ISLAND NY
MLC685 10268004072 LEE YEA HUI 51-02 PARSONS BOULEVARD FLUSHING NY
MLC685 10268004099 MORRISON MARK B 6 RFD OLD ROAD BREWSTER NY
MLC685 10268004247 BENTLEY YVONNE 572 EAST 28TH STREET BROOKLYN NY
MLC685 10268004315 FILACOURIS NICK 239 MOUNT PLEASANT RD HAUPPAUGE NY
MLC685 10268004354 TURPIN ADELE WALKER 234 19 130TH STREET ROSEDALE NY
MLC685 10268004419 FINK DAVID M 13893 NAPA DR MANASSAS VA
MLC685 10268004458 HUSTON HERBERT A 2568 ORCHARD WALK JONESBORO GA
MLC685 10268004463 MAGUIRE ROGER ALLEN 1021 SOUTH NEW YORK AVENUE LAKELAND FL
MLC685 10268004489 GATELY STEPHEN F 1109 TENNYSON PLACE ATLANTA GA
MLC685 10268004568 DAWID JOHN J JR 85 SPRINGVIEW AVE STRATFORD CT
MLC685 10268004690 KIMBALL RICKY LEE 8513 NORTH HAMNER AVENUE TAMPA FL
MLC685 10268004771 BARTHELUS FLORIAN 21 ECKERT AVENUE NEWARK NJ
MLC685 10268004818 KIM JUNE 4120 GALESBURY LN CHANTILLY VA
MLC685 10268004913 HICKS ERIC D 5727 KINKAID RD JACKSONVILLE FL
MLC685 10268005028 SABIR SHARON L 199-19 199TH AVE SAINT ALBANS NY
MLC685 10268005124 GEOGHEGAN JANICE R 4611 5TH AVENUE SOUTH ST PETERSBURG FL
MLC685 10268005187 MANNING JAMES L II 8118 GALVESTON AVE JACKSONVILLE FL
MLC685 10268005392 WIDNER JOHN A 522 RAVINE CT WYCKOFF NJ
MLC685 10268005524 MORTON IAN 71 CUMBERBACH ST WYANDANCH NY
MLC685 10268005546 SINGH GEENARINE 645 EAST 2ND STREET BROOKLYN NY
MLC685 10268005581 LEWIS NILE 101 2ND ST WEST FAIRVIEW PA
MLC685 10268005619 GRECO JOSEPHINE 22 ROCKWOOD AVE ANSONIA CT
MLC685 10268005689 MANGRU LAIKHRAM 125-06 97TH AVENUE RICHMOND HILL NY
MLC685 10268005744 LEE RAYMOND E 6404 LOCH RAVEN BLVD BALTIMORE MD
MLC685 10268005844 RAUF PAMELA L 3100 PARK ST N SAINT PETERSBURG FL
MLC685 10268005848 MULLIN MARGARET 950 SAN SALVADOR DR DUNEDIN FL
MLC685 10268005924 DURR JAMES TAYLOR 804 FORESTDALE DRIVE PANAMA CITY FL
MLC685 10268005936 ENGLEHART CRAIG BOX 117 EAST MAIN STREET WOMELSDORF PA
MLC685 10268005970 RUGGLES DAVID M 64 HC BOX 26 MERIDALE NY
MLC685 10268006043 RUEL HAROLD G 3 RD BOX 314B GEORGETOWN DE
MLC685 10268006196 BOATNER RANDY L 1473 PROSPECT RD ARAGON GA
MLC685 10268006271 CADELINA WILLIAM 455 STOCKHOLM STREET RIDGEWOOD NY
MLC685 10268006313 JOHNSEN NILS 127 BAYSHORE DR CAPE CORAL FL
MLC685 10268006323 OTTERBINE JOHN H 220 E TAMARACK ST HAZELTON PA
MLC685 10268006404 DEMING DAVID S 1235 FORSYTHE DR FORT WASHINGTON PA
MLC685 10268006431 SANTIEN KAROTIEN 119-45 147TH STREET JAMAICA NY
MLC685 10268006488 MITCHELL CLYDE F 5568 SKYLAND DR FOREST PARK GA
MLC685 10268006559 INGOGLIA VINCENT 1378 ILLINOIS AVE BAY SHORE NY
MLC685 10268006639 DOWLING JEAN C 5205 CRAVEN CT BENSALEM PA
MLC685 10268006659 GORDON DAVID 4352 BEDFORD AVE BROOKLYN NY
MLC685 10268006678 JACKSON LEWIS 1320 BOSTON AVE BAY SHORE NY
MLC685 10268006735 MINA ROBERT A 21 WHIPPLE LN MONTICELLO NY
MLC685 10268006770 PERSAUD SAHADEO 111-19 39TH AVENUE CORONA NY
MLC685 10268006774 ZARICHANSKY REBECCA A 3435 SPRING RD CARLISLE PA
MLC685 10268006799 SALAGA MARK J 10 LYNNS CT MORRISVILLE PA
MLC685 10268006826 WALSH STEVEN P 873 SAYVILLE AVE BOHEMIA NY
MLC685 10268006858 BILLS DEBRA M 5743 NORTHEIMER RD NARVON PA
MLC685 10268006904 BRUNSON GEORGE 1119 OLIVIA LANE GOLDSBORO NC
MLC685 10268006905 CURTIN KERRI ANN 84 HOBSON ST STAMFORD CT
MLC685 10268006958 ANDERSON JEFFREY 2528 56TH AVE E BRADENTON FL
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10268000429 06606 25,000.00 24,897.99 11/21/96 10/21/26 355.69 03/21/97 27.7 12.500 266.81
10268000835 21206 35,600.00 35,387.80 10/17/96 09/17/11 174.58 03/17/97 84.8 13.700 466.95
10268001770 11709 168,000.00 168,000.00 12/21/96 11/21/11 176.71 02/21/97 37.3 11.500 1,663.69
10268002992 11372 164,000.00 163,456.80 01/04/97 12/04/11 177.14 03/04/97 80.0 11.700 1,649.15
10268003203 11423 28,700.00 28,700.00 02/08/97 01/08/12 178.29 03/08/97 82.0 12.750 311.88
10268003388 11962 150,000.00 150,000.00 02/06/97 01/06/12 178.22 03/06/97 63.8 10.750 1,681.42
10268003539 10501 40,000.00 40,000.00 02/06/97 01/06/12 178.22 03/06/97 82.8 12.150 416.07
10268003542 10598 190,800.00 190,800.00 02/03/97 01/03/12 178.13 03/03/97 90.0 11.250 1,853.17
10268003891 06473 33,800.00 33,800.00 02/10/97 01/10/17 238.36 02/10/97 89.1 12.750 389.99
10268003989 10310 37,000.00 37,000.00 02/15/97 01/15/12 178.52 03/15/97 89.9 12.350 390.58
10268004072 11355 33,800.00 33,800.00 01/24/97 12/24/11 177.80 02/24/97 79.9 14.350 409.87
10268004099 10509 236,300.00 236,300.00 02/06/97 01/06/12 178.22 03/06/97 85.0 10.500 2,161.53
10268004247 11210 25,100.00 25,018.40 02/08/97 01/08/12 178.29 03/08/97 89.9 11.350 290.83
10268004315 11788 50,000.00 49,627.98 02/06/97 01/06/12 178.22 04/06/97 76.7 10.500 552.70
10268004354 11422 57,000.00 56,928.97 12/22/96 11/22/16 236.75 02/22/97 79.8 12.200 635.59
10268004419 20111 39,948.00 39,948.00 01/23/97 12/23/11 177.76 03/23/97 85.9 12.000 410.91
10268004458 30236 95,700.00 95,650.76 12/01/96 11/01/11 176.00 03/01/97 89.9 12.500 1,021.37
10268004463 33803 62,000.00 62,000.00 02/14/97 01/14/27 358.49 03/14/97 75.6 10.750 578.76
10268004489 30319 22,800.00 22,800.00 02/02/97 01/02/12 178.09 02/02/97 83.4 12.350 278.79
10268004568 06497 20,000.00 20,000.00 02/01/97 01/01/12 178.00 03/01/97 82.8 11.950 239.39
10268004690 33604 32,900.00 32,900.00 02/07/97 01/07/27 358.26 03/07/97 70.0 9.600 279.04
10268004771 07112 80,000.00 80,000.00 02/15/97 01/15/12 178.52 02/15/97 80.0 10.500 884.32
10268004818 22021 30,350.00 30,235.89 01/24/97 12/24/11 177.80 03/24/97 80.8 14.950 423.74
10268004913 32244 42,000.00 41,986.25 02/06/97 01/06/17 238.22 03/06/97 69.4 9.150 381.95
10268005028 11412 128,000.00 128,000.00 12/22/96 11/22/11 176.75 03/22/97 82.5 11.000 1,218.98
10268005124 33711 30,000.00 30,000.00 02/01/97 01/01/12 178.00 03/01/97 48.3 10.750 280.04
10268005187 32211 37,000.00 37,000.00 02/06/97 01/06/27 358.22 03/06/97 62.7 9.800 319.25
10268005392 07481 69,000.00 68,924.98 02/08/97 01/08/12 178.29 03/08/97 89.6 12.750 749.82
10268005524 11798 59,500.00 59,500.00 02/22/97 01/22/12 178.75 03/22/97 70.0 10.500 544.27
10268005546 11218 80,000.00 79,566.67 11/16/96 10/16/11 175.53 03/16/97 74.7 11.200 919.35
10268005581 17025 32,600.00 32,247.63 01/11/97 12/11/06 117.37 03/11/97 89.8 10.800 445.38
10268005619 06401 87,500.00 87,230.90 02/10/97 01/10/17 238.36 03/10/97 70.0 9.950 841.50
10268005689 11419 25,000.00 24,992.95 02/06/97 01/06/17 238.22 03/06/97 84.7 13.300 298.25
10268005744 21239 55,000.00 55,000.00 02/14/97 01/14/12 178.49 03/14/97 74.3 12.990 607.98
10268005844 33710 64,000.00 64,000.00 02/28/97 01/28/27 358.95 02/28/97 80.0 10.000 561.65
10268005848 34698 62,900.00 62,900.00 02/13/97 01/13/27 358.45 03/13/97 85.0 12.100 651.84
10268005924 32401 40,000.00 40,000.00 02/16/97 01/16/27 358.55 03/16/97 82.4 10.650 370.39
10268005936 19567 27,900.00 27,713.74 01/17/97 12/17/06 117.57 03/17/97 84.5 13.700 428.17
10268005970 13806 22,500.00 22,500.00 02/15/97 01/15/17 238.52 02/15/97 84.9 11.750 243.83
10268006043 19947 19,670.00 19,612.88 01/03/97 12/03/11 177.11 03/03/97 89.9 12.500 209.93
10268006196 30104 16,000.00 16,000.00 01/13/97 12/13/11 177.44 02/13/97 77.7 14.300 216.32
10268006271 11385 27,900.00 27,872.29 02/15/97 01/15/12 178.52 03/15/97 89.9 10.500 308.41
10268006313 33904 38,500.00 38,500.00 01/09/97 12/09/11 177.30 03/09/97 84.9 12.900 422.88
10268006323 18201 18,000.00 17,971.44 02/10/97 01/10/17 238.36 03/10/97 26.4 11.500 191.96
10268006404 19034 88,100.00 87,876.77 02/01/97 01/01/12 178.00 04/01/97 84.9 12.900 967.68
10268006431 11436 216,000.00 216,000.00 02/24/97 01/24/27 358.82 02/24/97 90.0 11.990 2,220.14
10268006488 30050 45,000.00 44,863.62 02/21/97 01/21/27 358.72 03/21/97 84.9 10.050 396.57
10268006559 11706 85,000.00 84,907.85 02/15/97 01/15/12 178.52 03/15/97 85.0 12.250 890.71
10268006639 19020 20,000.00 19,938.87 02/17/97 01/17/07 118.59 03/17/97 79.8 13.500 304.55
10268006659 11229 40,000.00 40,000.00 02/01/97 01/01/12 178.00 03/01/97 78.1 11.990 411.14
10268006678 11706 114,300.00 114,300.00 02/14/97 01/14/12 178.49 03/14/97 77.2 9.800 986.21
10268006735 12701 13,000.00 13,000.00 02/21/97 01/21/12 178.72 02/21/97 80.1 12.750 162.35
10268006770 11368 92,000.00 91,931.62 02/21/97 01/21/12 178.72 03/21/97 85.1 12.500 981.88
10268006774 17013 18,200.00 18,200.00 01/24/97 12/24/11 177.80 02/24/97 89.9 11.550 180.93
10268006799 19067 15,150.00 15,150.00 01/04/97 12/04/11 177.14 02/04/97 89.9 12.750 189.20
10268006826 11716 16,250.00 16,230.20 01/03/97 12/03/11 177.11 02/03/97 85.3 12.990 179.63
10268006858 17555 39,800.00 39,800.00 02/16/97 01/16/12 178.55 03/16/97 89.9 11.350 389.59
10268006904 27530 27,200.00 27,049.63 02/02/97 01/02/07 118.09 03/02/97 60.4 11.700 385.54
10268006905 06902 56,000.00 56,000.00 02/15/97 01/15/12 178.52 03/15/97 53.4 11.375 549.23
10268006958 34203 89,000.00 89,000.00 02/09/97 01/09/27 358.32 03/09/97 77.3 9.990 780.38
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 9
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MLC685 10268006981 SHEA THERESA M 73 FLORENCE ST EAST HAVEN CT
MLC685 10268007006 MCKENZIE CANDICE M 2962 CEDAR MILL DR ACWORTH GA
MLC685 10268007011 GALLAGHER MARK J 159 MINUTE MAN RIDGEFIELD CT
MLC685 10268007112 BOGART ERIC J 8817 PHELPS RD HUDSON FL
MLC685 10268007121 MCGRATH KEVIN 270 SOUTH BAYVIEW AVENUE FREEPORT NY
MLC685 10268007164 HOEFLSCHWEIGER MARK 88 WEDGEWOOD DR WEST SENECA NY
MLC685 10268007195 VITALE BIAGIO A 571 SYLVAN LAKE RD WATERTOWN CT
MLC685 10268007239 SETTEDUCATO PAUL 306 EVERGREEN AVE BROOKLYN NY
MLC685 10268007256 WICKRAMAS NANDANA HEMALAL 490 CLOVE ROAD STATEN ISLAND NY
MLC685 10268007257 FLEMING JOSEPH WILLIAM 999 FOREST AVE APT 1B STATEN ISLAND NY
MLC685 10268007263 GOLDSMITH LARRY J 2456 BOUND BROOK LN YORKTOWN HEIGHTS NY
MLC685 10268007277 DESILVA K.D.S. 490 CLOVE RD APT 2F STATEN ISLAND NY
MLC685 10268007282 KAUFFMAN LAWRENCE D 1418 AUTUMN LANE CHERRY HILL NJ
MLC685 10268007293 LEAVER THOMAS E 628 NEWTON ST BROOKLINE MA
MLC685 10268007312 WINDHAM JON D 3790 SOUTHBOROUGH RD FLORENCE SC
MLC685 10268007320 DEVLIN JACQUIE E 328 TOWNSEND AVENUE NEW HAVEN CT
MLC685 10268007329 BUTLER BARRY 401 LAUREL STREET EAST HAVEN CT
MLC685 10268007330 WELSH BRIAN F 306 FAIRVIEW ROAD SPRINGFIELD PA
MLC685 10268007356 SENUTA JOHN A 7925 GORDEAN ROAD JACKSONVILLE FL
MLC685 10268007369 MARTIN CHARLES E 5360 BROOKFIELD RD LEE CENTER NY
MLC685 10268007392 ROBINSON HECTOR A 328 SOUTH 10TH AVENUE MOUNT VERNON NY
MLC685 10268007408 CARROZZA THEODORE 77 CASCADE ROAD WARWICK NY
MLC685 10268007450 BROWN SANDRA A 9930 SAN DIEGO WAY PORT RICHEY FL
MLC685 10268007489 CENEDELLA RICHARD W JR 165 WOONSOCKET NORTH SMITHFIELD RI
MLC685 10268007500 ESCALANTE CLARA 25 65 50TH STREET WOODSIDE NY
MLC685 10268007555 DOLAN JOHN 35 PARK LANE PL MASSAPEQUA NY
MLC685 10268007610 CONZA ANTHONY 92-14 104TH STREET RICHMOND HILL NY
MLC685 10268007642 LO SING 17 ALGONQUIN RD CANTON MA
MLC685 10268007678 KRISTENSEN KURK D 501 41ST AVE S SAINT PETERSBURG FL
MLC685 10268007683 KRISTENSEN KIRK D 453 41ST AVE S SAINT PETERSBURG FL
MLC685 10268007686 CARLO MONTE P 3407 HAZEL STREET ERIE PA
MLC685 10268007716 CAVALLO SANTUCCIO 53 BROOKVIEW CIR WATERTOWN CT
MLC685 10268007746 MONTESANTO PAUL 384 SHORT BEACH RD EAST HAVEN CT
MLC685 10268007776 MYERS JAMES P 1617 COURTLAND RD ALEXANDRIA VA
MLC685 10268007844 TALBERT JUDY 11921 AUTUMNWOOD LN FORT WASHINGTON MD
MLC685 10268007848 KANGAS THOMAS R 1 MULBERRY LN WOLCOTT CT
MLC685 10268007873 KLAMORICK WILLIAM JR 513 CHARLES ST CHARLEROI PA
MLC685 10268007955 CHERISMO RICHARDSON 35 DEPEW ST HUNTINGTON NY
MLC685 10268007957 WALLACE WILLIAM A SR 430 LIMEROCK ROAD LAKEVILLE CT
MLC685 10268008006 CAPEN SANDRA R 1172 SW PELICAN CRESCENT PALM CITY FL
MLC685 10268008009 CROSBY KENNETH LEE 2122 TEALWOOD DRIVE GREENSBORO NC
MLC685 10268008032 KIMBALL RICKY L 8523 NORTH HAMNER AVENUE TAMPA FL
MLC685 10268008050 ISIDORA NINA 23220 LUCERNE PL LAND O LAKES FL
MLC685 10268008055 MCLAUGHLIN LUBERTA M. 340 NORTH CARLISLE STREET SOUTHERN PINES NC
MLC685 10268008057 PETERSON MARION 38 FRAN LN SELDEN NY
MLC685 10268008064 CENTORRINO CHARLES 7 TUDOR DR FARMINGDALE NJ
MLC685 10268008081 HAUGHIE BRUCE 27 NOWICK LN SMITHTOWN NY
MLC685 10268008090 YOUNGLING SANDRA 59 NORTH JULIET ISELIN NJ
MLC685 10268008098 ALLISON ARLENE G 646 NORTH SECOND STREET LYKENS PA
MLC685 10268008134 WITMER DAVID H 60 GARLAND DR CARLISLE PA
MLC685 10268008176 PERCOCO DOMINICK JR 627 JAYNE BLVD PT JEFFERSON STATION NY
MLC685 10268008220 HASSAN KALAMODEEN 33-13 OLINVILLE AVENUE BRONX NY
MLC685 10268008232 BASS TERRY R 5208 WESTMINSTER LANE FUQUAY VARINA NC
MLC685 10268008234 TERRY KEITH 1365 DECATUR ST BROOKLYN NY
MLC685 10268008237 CARUANA MICHAEL 101 LONG FELLOW ROAD KENT NY
MLC685 10268008265 TINCHER CHARLES G 116 WOODLAND ROAD ROCKINGHAM NC
MLC685 10268008267 PRESTANO SANTO 25 SNYDER ST PATCHOGUE NY
MLC685 10268008269 SCIBILIA DEBORAH A 10918 CARROLLWOOD DRIVE TAMPA FL
MLC685 10268008304 ORMOND ELAINE R 40 WOODSIDE DR GRAFTON MA
MLC685 10268008343 CRETELLA DANIEL B 48 PLEASANT VALLEY RD MANSFIELD CENTER CT
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10268006981 06513 25,200.00 25,185.06 02/21/97 01/21/17 238.72 03/21/97 84.9 13.700 307.89
10268007006 30102 23,000.00 23,000.00 01/04/97 12/04/11 177.14 02/04/97 89.9 12.750 287.24
10268007011 06877 75,000.00 75,000.00 01/31/97 12/31/11 178.03 02/28/97 33.6 11.800 890.50
10268007112 34667 30,800.00 30,800.00 01/11/97 12/11/11 177.37 03/11/97 79.9 10.500 281.74
10268007121 11520 45,000.00 44,938.49 02/01/97 01/01/12 178.00 03/01/97 84.0 12.500 554.63
10268007164 14224 23,000.00 23,000.00 02/06/97 01/06/12 178.22 03/06/97 89.6 11.550 269.42
10268007195 06779 60,750.00 60,750.00 02/01/97 01/01/12 178.00 03/01/97 89.9 11.950 622.54
10268007239 11221 156,000.00 156,000.00 02/13/97 01/13/12 178.45 03/13/97 80.0 12.950 1,719.58
10268007256 10310 35,600.00 35,524.50 02/07/97 01/07/12 178.26 03/07/97 74.9 10.600 395.73
10268007257 10310 38,500.00 38,422.01 02/10/97 01/10/12 178.36 03/10/97 70.0 11.000 437.59
10268007263 10598 29,700.00 29,700.00 02/21/97 01/21/12 178.72 02/21/97 89.9 12.750 370.90
10268007277 10310 41,930.00 41,831.17 02/06/97 01/06/12 178.22 03/06/97 70.0 10.850 472.63
10268007282 08003 85,900.00 85,829.46 02/23/97 01/23/12 178.78 03/23/97 79.9 11.000 976.34
10268007293 02167 100,000.00 100,000.00 02/01/97 01/01/12 178.00 03/01/97 80.2 11.700 1,005.58
10268007312 29501 40,680.00 40,680.00 02/02/97 01/02/17 238.09 03/02/97 84.7 12.750 469.37
10268007320 06512 42,000.00 41,869.62 02/20/97 01/20/17 238.68 03/20/97 79.9 11.500 447.90
10268007329 06512 30,750.00 30,750.00 02/22/97 01/22/12 178.75 02/22/97 89.9 12.350 376.00
10268007330 19064 58,000.00 58,000.00 02/08/97 01/08/07 118.29 03/08/97 77.5 13.950 898.80
10268007356 32221 42,600.00 42,443.68 02/28/97 01/28/12 178.95 03/28/97 60.8 9.990 457.52
10268007369 13363 37,775.00 37,775.00 03/01/97 02/01/17 239.00 03/01/97 72.5 10.500 377.14
10268007392 10550 25,450.00 25,421.90 02/02/97 01/02/12 178.09 03/02/97 79.9 13.750 334.66
10268007408 10990 33,000.00 33,000.00 02/15/97 01/15/12 178.52 02/15/97 80.1 12.750 412.12
10268007450 34668 28,500.00 28,500.00 02/27/97 01/27/12 178.92 02/27/97 79.1 13.750 374.77
10268007489 02896 18,000.00 17,968.69 01/23/97 12/23/11 177.76 03/23/97 89.9 11.990 185.01
10268007500 11377 21,000.00 20,927.98 02/15/97 01/15/12 178.52 03/15/97 78.3 11.400 243.99
10268007555 11758 60,000.00 60,000.00 02/15/97 01/15/17 238.52 03/15/97 79.5 12.200 669.04
10268007610 11418 23,400.00 23,400.00 02/03/97 01/03/12 178.13 03/03/97 84.9 12.990 295.91
10268007642 02021 84,750.00 84,692.72 01/26/97 12/26/16 237.86 03/26/97 85.0 12.900 986.88
10268007678 33705 35,000.00 34,968.17 02/15/97 01/15/12 178.52 03/15/97 70.0 10.750 392.33
10268007683 33705 30,100.00 30,072.69 02/15/97 01/15/12 178.52 03/15/97 70.0 10.750 337.41
10268007686 16508 13,900.00 13,900.00 02/20/97 01/20/12 178.68 02/20/97 80.3 12.750 173.59
10268007716 06795 91,000.00 90,983.77 02/13/97 01/13/12 178.45 03/13/97 78.8 11.100 1,040.02
10268007746 06512 10,000.00 10,000.00 02/13/97 01/13/12 178.45 02/13/97 89.8 11.950 119.70
10268007776 22306 118,500.00 118,500.00 02/16/97 01/16/12 178.55 03/16/97 89.9 11.350 1,159.95
10268007844 20744 48,500.00 48,500.00 02/15/97 01/15/12 178.52 02/15/97 80.8 13.800 566.99
10268007848 06716 62,805.00 62,805.00 02/23/97 01/23/12 178.78 03/23/97 89.9 11.750 633.96
10268007873 15022 45,500.00 45,332.08 02/17/97 01/17/12 178.59 03/17/97 68.9 9.400 472.38
10268007955 11743 50,000.00 50,000.00 02/17/97 01/17/12 178.59 03/17/97 74.1 10.300 449.91
10268007957 06039 26,900.00 26,900.00 02/21/97 01/21/12 178.72 03/21/97 79.2 13.900 356.43
10268008006 34990 42,000.00 42,000.00 02/02/97 01/02/07 118.09 03/02/97 78.5 13.500 639.55
10268008009 27407 23,400.00 23,184.57 02/14/97 01/14/12 178.49 04/14/97 89.9 11.450 272.61
10268008032 33604 63,750.00 63,750.00 02/07/97 01/07/27 358.26 03/07/97 85.0 9.400 531.40
10268008050 34639 10,000.00 9,995.70 02/06/97 01/06/12 178.22 03/06/97 84.3 12.500 123.25
10268008055 28387 22,275.00 22,138.74 02/23/97 01/23/07 118.78 03/23/97 63.6 9.850 292.52
10268008057 11784 35,000.00 34,814.91 02/14/97 01/14/12 178.49 03/14/97 46.6 10.500 386.89
10268008064 07727 44,000.00 43,892.40 01/19/97 12/19/16 237.63 03/19/97 87.7 12.350 495.26
10268008081 11787 45,900.00 45,777.62 02/23/97 01/23/12 178.78 03/23/97 84.9 11.100 524.58
10268008090 08830 25,650.00 25,467.30 02/08/97 01/08/12 178.29 04/08/97 85.0 13.700 336.44
10268008098 17048 12,850.00 12,850.00 03/15/97 02/15/17 239.54 03/15/97 89.9 12.750 148.26
10268008134 17013 37,265.00 37,151.01 01/23/97 12/23/11 177.76 03/23/97 89.9 12.550 460.51
10268008176 11776 47,000.00 47,000.00 01/23/97 12/23/16 237.76 03/23/97 86.8 11.990 517.18
10268008220 10467 30,000.00 29,946.91 02/22/97 01/22/12 178.75 03/22/97 80.9 14.300 405.59
10268008232 27526 58,600.00 58,600.00 02/27/97 01/27/17 238.92 02/27/97 89.9 11.450 622.91
10268008234 11237 148,750.00 148,750.00 02/09/97 01/09/12 178.32 02/09/97 85.0 12.850 1,628.05
10268008237 10512 41,500.00 41,399.36 01/24/97 12/24/11 177.80 03/24/97 84.9 12.990 524.80
10268008265 28379 16,000.00 15,935.09 02/13/97 01/13/07 118.45 03/13/97 88.3 11.250 222.67
10268008267 11772 74,000.00 73,602.90 01/18/97 12/18/11 177.60 03/18/97 69.8 12.990 935.79
10268008269 33618 24,200.00 24,159.14 02/02/97 01/02/12 178.09 03/02/97 89.9 11.150 277.34
10268008304 01519 40,000.00 40,000.00 02/27/97 01/27/12 178.92 02/27/97 89.8 12.350 489.11
10268008343 06250 66,000.00 65,953.03 02/06/97 01/06/17 238.22 03/06/97 84.4 12.750 761.52
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 10
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MLC685 10268008349 DORAN MICHAEL 67 HOLLY ST MILFORD CT
MLC685 10268008369 ALBIGESE GERALDINE 994 CRYSTAL LAKE TERRACE FRANKLIN LAKES NJ
MLC685 10268008387 HOFFMAN CLYDE L 3369 RIDGE AVE MACON GA
MLC685 10268008426 ALLMAN STEPHEN J 435 SUNSET DR BUTLER PA
MLC685 10268008451 SELF DARNELL E 12912 PRINCELEIGH ST UPPER MARLBORO MD
MLC685 10268008462 DURANTE JOSEPH M 1519 GREEN VALLEY DRIVE COLLEGEVILLE PA
MLC685 10268008581 MECHLEM VIRGINIA 4405 SW 25TH AVE CAPE CORAL FL
MLC685 10268008584 LYNN EILEEN 851 37TH AVE NE SAINT PETERSBURG FL
MLC685 10268008602 ROBINSON DAVID E 4106 CAROZZA CT TEMPLE HILLS MD
MLC685 10268008611 RAPHAEL MICHAEL 6304 SPOONBILL DR NEW PORT RICHEY FL
MLC685 10268008624 WALLS JANICE 224 EAST 91ST STREET BROOKLYN NY
MLC685 10268008640 DESIANTE GIULIA 6339 LANGSTON AVENUE NEW PORT RICHEY FL
MLC685 10268008642 PIKUNIS TED H 39707 NORTH AVE ZEPHYRHILLS FL
MLC685 10268008660 WARNE JAMES T 2284 PHILADELPHIA AVENUE CHAMBERSBURG PA
MLC685 10268008668 FOLKS MARTIN 205 BARREN RD MEDIA PA
MLC685 10268008707 YOUNG ROBERT B JR 50 ROUTE JOHN MOSBY HIGHWAY MIDDLEBURG VA
MLC685 10268008712 MARVELLI JOSEPH A 516 MORRISON PL BATH PA
MLC685 10268008735 HAMEL ROBERT B 320 FROST RD WATERBURY CT
MLC685 10268008774 HALKO PAUL S 77 SAXER AVE SPRINGFIELD PA
MLC685 10268008778 BALLEW WILLIAM 3510 SW 40TH AVE HOLLYWOOD FL
MLC685 10268008802 MORGAN GLANDA O 709 37TH AVENUE DR E BRADENTON FL
MLC685 10268008803 ORTNER KATHLEEN 11310 CAPISTRANO CT FORT MYERS FL
MLC685 10268008814 BLACKMAN DALLAS LEE 205 E H ST ERWIN NC
MLC685 10268008819 CAYTON CARLE GALEN 1308 NORTH RAINWOOD LANE RALEIGH NC
MLC685 10268008824 TERRA STEPHAN R. 1086 - 1090 WELSH ROAD PHILADELPHIA PA
MLC685 10268008825 SAMUDA ALDEN 288 SOUTHSIDE AVE FREEPORT NY
MLC685 10268008845 LAROCCO MAVIS 2215 TUMBLEWEED DRIVE HOLIDAY FL
MLC685 10268008876 EVANS HAYDEN F 404 NORTH MAIN STREET TELFORD PA
MLC685 10268008895 KNIGHT MICHELE D 1331 INGRAHAM ST NAPLES FL
MLC685 10268008922 BARKER JAMES C 3103 OHIO STREET LONGVIEW WA
MLC685 10268008944 PAPRZYCKI JOHN E 708 HARBOR CIRCLE PALM HARBOR FL
MLC685 10268009017 TORNABENE PHILIP F 2424 FORREST ST EASTON PA
MLC685 10268009057 DAIL CHARLIE L 4425 DAIL RD LAKELAND FL
MLC685 10268009082 HUTCHINS RICHARD C 6207 EDGEWOOD RD APT D EDGEWOOD MD
MLC685 10268009107 IRVING JOHN F 1620 BROAD WATER RD CUTCHOGUE NY
MLC685 10268009122 HUTCHINS RICHARD C 6207 EDGEWOOD RD APT C EDGEWOOD MD
MLC685 10268009132 JORDAN BRENDA K 4667 25TH AVE S SAINT PETERSBURG FL
MLC685 10268009160 ALEXANDER GEORGE D 240-38 128TH ROAD ROSEDALE NY
MLC685 10268009167 JOHNSON WALTER H 5 MATTHEW COURT NEW FREEDOM PA
MLC685 10268009174 BUTLER KIRBY B JR 3021 EGRET TERRACE SAFETY HARBOR FL
MLC685 10268009184 MEYERS RUSSELL W SR 3415 RIDGE RD WESTMINSTER MD
MLC685 10268009192 REID DELBERT N 51 MCKEE ST EAST HARTFORD CT
MLC685 10268009234 GINN WILLIAM W MC JR 3910 10 AVENUE DRIVE WEST BRADENTON FL
MLC685 10268009243 GATEWOOD MINNIE 714 OCIE STREET DARLINGTON SC
MLC685 10268009258 ALLAIN JUAN 46 PUTNAM DR PORT CHESTER NY
MLC685 10268009280 MARINO ROGER 28355 ROYAL PALM DR PUNTA GORDA FL
------------------------------------------------
166 Sale Total
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10268008349 06460 37,900.00 37,900.00 02/01/97 01/01/12 178.00 03/01/97 89.3 12.550 468.36
10268008369 07417 55,000.00 54,780.27 02/14/97 01/14/17 238.49 03/14/97 59.7 11.000 567.70
10268008387 31204 103,250.00 103,225.83 01/20/97 12/20/11 177.67 03/20/97 70.0 11.750 1,042.22
10268008426 16001 120,000.00 119,609.81 02/06/97 01/06/12 178.22 04/06/97 80.0 13.000 1,327.44
10268008451 20774 70,500.00 69,986.71 10/06/96 09/06/11 174.21 03/06/97 52.6 13.600 813.07
10268008462 19426 75,300.00 75,300.00 03/01/97 02/01/12 179.00 03/01/97 89.2 11.350 872.48
10268008581 33914 17,500.00 17,447.40 02/13/97 01/13/12 178.45 03/13/97 34.0 10.500 193.44
10268008584 33704 42,400.00 42,400.00 02/10/97 01/10/12 178.36 02/10/97 71.8 12.850 464.06
10268008602 20748 29,000.00 29,000.00 02/17/97 01/17/12 178.59 02/17/97 74.7 11.250 334.18
10268008611 34652 28,000.00 28,000.00 03/01/97 02/01/07 119.00 03/01/97 84.3 12.150 404.15
10268008624 11212 32,285.00 32,285.00 02/06/97 01/06/17 238.22 03/06/97 85.0 11.500 344.30
10268008640 34653 10,628.00 10,600.95 02/13/97 01/13/12 178.45 03/13/97 86.9 11.550 124.49
10268008642 33540 51,000.00 51,000.00 02/27/97 01/27/12 178.92 02/27/97 68.9 12.000 612.09
10268008660 17201 74,700.00 74,503.93 02/28/97 01/28/27 358.95 03/28/97 90.0 11.250 725.53
10268008668 19063 90,600.00 90,491.55 09/28/96 08/28/11 173.92 02/28/97 89.9 11.950 928.44
10268008707 22118 100,000.00 100,000.00 02/13/97 01/13/12 178.45 02/13/97 76.0 10.500 914.74
10268008712 18014 119,000.00 118,901.09 02/15/97 01/15/12 178.52 03/15/97 85.0 10.000 1,044.31
10268008735 06705 13,900.00 13,900.00 02/08/97 01/08/12 178.29 02/08/97 89.9 12.750 173.59
10268008774 19064 16,200.00 16,129.81 02/14/97 01/14/17 238.49 03/14/97 90.0 11.350 171.09
10268008778 33023 27,400.00 27,400.00 02/15/97 01/15/12 178.52 02/15/97 71.7 10.300 299.49
10268008802 34208 23,100.00 23,087.42 02/20/97 01/20/17 238.68 03/20/97 88.3 11.750 250.34
10268008803 33908 125,000.00 124,683.40 03/01/97 02/01/12 179.00 04/01/97 84.6 10.500 1,143.42
10268008814 28339 28,000.00 27,895.12 02/08/97 01/08/07 118.29 03/08/97 89.2 11.250 389.67
10268008819 27615 38,300.00 38,282.87 02/15/97 01/15/17 238.52 03/15/97 84.9 9.600 359.51
10268008824 19115 25,000.00 24,972.77 02/17/97 01/17/12 178.59 03/17/97 78.6 12.750 271.67
10268008825 11520 29,500.00 29,500.00 02/08/97 01/08/12 178.29 03/08/97 79.7 13.750 343.71
10268008845 34690 26,200.00 26,180.54 02/14/97 01/14/12 178.49 03/14/97 74.9 11.250 301.91
10268008876 18969 26,850.00 26,850.00 02/07/97 01/07/27 358.26 03/07/97 90.0 11.350 262.82
10268008895 33940 35,045.00 35,045.00 02/27/97 01/27/07 118.92 02/27/97 70.0 11.250 487.72
10268008922 98632 34,500.00 34,500.00 02/28/97 01/28/17 238.95 02/28/97 89.9 11.150 359.63
10268008944 34683 24,400.00 24,400.00 02/27/97 01/27/17 238.92 02/27/97 79.9 14.000 303.42
10268009017 18042 52,150.00 52,150.00 02/28/97 01/28/27 358.95 02/28/97 70.9 9.500 438.51
10268009057 33813 99,060.00 99,060.00 02/15/97 01/15/27 358.52 03/15/97 79.8 10.050 872.98
10268009082 21040 27,600.00 27,600.00 02/23/97 01/23/12 178.78 02/23/97 60.0 9.800 238.14
10268009107 11935 48,000.00 47,799.97 03/03/97 02/03/12 179.15 04/03/97 70.1 10.100 518.75
10268009122 21040 27,600.00 27,600.00 02/23/97 01/23/12 178.78 02/23/97 60.0 9.800 238.14
10268009132 33711 49,600.00 49,509.44 02/13/97 01/13/12 178.45 03/13/97 80.0 10.600 551.36
10268009160 11422 105,000.00 104,885.12 02/24/97 01/24/12 178.82 03/24/97 61.7 10.550 964.40
10268009167 17349 18,800.00 18,800.00 03/01/97 02/01/12 179.00 03/01/97 87.9 11.550 220.22
10268009174 34695 22,000.00 22,000.00 02/15/97 01/15/12 178.52 02/15/97 79.4 13.500 285.63
10268009184 21157 18,000.00 17,855.78 02/10/97 01/10/12 178.36 04/10/97 87.4 10.650 200.65
10268009192 06108 86,400.00 86,384.16 02/13/97 01/13/12 178.45 03/13/97 75.1 10.990 822.15
10268009234 34205 28,000.00 27,971.03 02/23/97 01/23/12 178.78 03/23/97 83.7 12.500 345.11
10268009243 29532 23,300.00 23,278.10 02/20/97 01/20/12 178.68 03/20/97 56.8 10.750 261.18
10268009258 10573 26,000.00 25,884.47 03/01/97 02/01/12 179.00 04/01/97 89.9 11.550 304.56
10268009280 33982 43,300.00 43,222.11 02/09/97 01/09/12 178.32 03/09/97 84.9 9.700 457.39
--------------------------------- ------- ----------------------------
8,578,666.00 8,569,021.20 203.78 78.6 11.582 91,882.91
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 11
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MLC686 10268000879 MIHOCKO JENNIE M 285 TEXAS AVENUE BRIDGEPORT CT
MLC686 10268003244 CABALLERO CARLOS 6435 FRANCONIA RD SPRINGFIELD VA
MLC686 10268003613 CONROY EDWARD D 178 CLINTON STREERT MONTGOMERY NY
MLC686 10268003962 SMITH ERNEST L 6008 THOMAS TER SEBRING FL
MLC686 10268004284 ABBOTT MICHAEL W 2 SCALISE DR COLUMBIA CT
MLC686 10268004527 LAWLER MARTHA 276 A QUINCY ST BROOKLYN NY
MLC686 10268004712 DUGAN DAVID 6217 EAGLEBROOK AVE TAMPA FL
MLC686 10268005126 KAPP DONALD G SR 2311 NOVUS ST SARASOTA FL
MLC686 10268005326 DIODATO GREGORY 193 SANDALWOOD DR STATEN ISLAND NY
MLC686 10268005339 CULLINANE ROSALIE 59 LISA LN LOWELL MA
MLC686 10268005570 BETHEL JAMES R 5 SIOUX TRAIL BROWNS MILLS NJ
MLC686 10268005609 FLEURISMOND JEAN 15 NORTH COLE AVENUE SPRING VALLEY NY
MLC686 10268005852 MELEGH JAMES 301 TROTTING RD UNION NJ
MLC686 10268006124 KOERICK SUSAN M 800 61ST STREET SOUTH GULFPORT FL
MLC686 10268006255 ENSLEN CLIFFORD CLYDE 514 UPPER HARMONY RD EVANS CITY PA
MLC686 10268006283 PHILLIPS MARILYN K 8395 PEACHEY RD BERGEN NY
MLC686 10268006317 BRYANT MARY L 12 BRIDLE PATH NEWBURGH NY
MLC686 10268006583 MCKETHAN MICHAEL 4721 PAMLICO ROAD FAYETTEVILLE NC
MLC686 10268006631 CORNA PETER 19 HALE HAVEN CT MONTVILLE CT
MLC686 10268006727 HARDING KAREN M 214 DEEP CREEK TERRACE BEAR DE
MLC686 10268006815 KAHN EDWIN L 6761 RANCHWOOD LOOP NEW PORT RICHEY FL
MLC686 10268006909 CARDOSO EURICO M 34 ALICE ST NORTH DARTMOUTH MA
MLC686 10268006976 GREEN WALTER E 1619 SE 40TH STREET CAPE CORAL FL
MLC686 10268007030 JR. JOHN FREEMAN, 39 BRASINGTON ST CHERAW SC
MLC686 10268007147 AUGER MICHAEL A 6709 MOSS DR NEW PORT RICHEY FL
MLC686 10268007177 CARPENTER DAVID J 140 HAMAKER RD MANHEIM PA
MLC686 10268007200 BYRNES CLIFFORD NEIL 108 DRAYTON DR SUMMERVILLE SC
MLC686 10268007246 MCCARTHY CAROLYN 1 LAKES RD MONROE NY
MLC686 10268007307 LANIGAN PATRICK F 522 RIDGEVIEW DR HOCKESSIN DE
MLC686 10268007340 FRANCIONE FRANK A 700 FOX HOLLOW DRIVE YARDLEY PA
MLC686 10268007354 DREIBELBIS SUSAN RR 5 BOX 5784 SAYLORSBURG PA
MLC686 10268007405 SAHA BIJOY 58-24 85TH STREET ELMHUSRT NY
MLC686 10268007441 BOYER OSCAR A 1025 GROSSTOWN ROAD POTTSTOWN PA
MLC686 10268007567 ALI SAEED R 154 BRIGHTON 10 ST BROOKLYN NY
MLC686 10268007599 JONES EDWARD F 791 ROUTE 537 PO BOX 102 CREAM RIDGE NJ
MLC686 10268007603 RAMSUNDAR DHOLARIE V 121-19 149TH AVENUE JAMAICA NY
MLC686 10268007607 SHAW JUDITH K BOX 102 A STAR ROUTE SCOTTDALE PA
MLC686 10268007626 KEATON CATHY A 3301 GATCOMBE PLACE RALEIGH NC
MLC686 10268007643 SUGAR LAWRENCE J 54 W STATE ST DOLGEVILLE NY
MLC686 10268007816 ELLINGTON REGINALD 106 N PAQUATUCK AVE EAST MORICHES NY
MLC686 10268007859 BRUMBERG DAVID J 1503 BENNER ST PHILADELPHIA PA
MLC686 10268007869 JR. WILLIAM KLAMORICK, 512 CHARLES ST CHARLEROI PA
MLC686 10268007993 ALEXY CHARLES EDWARD 65 WEBB DR WASHINGTON PA
MLC686 10268008139 RHOADS RONALD R 373 PRIMROSE LN MOUNTVILLE PA
MLC686 10268008199 ROCKEFELLER RENEE L 267 MANNING BOULEVARD ALBANY NY
MLC686 10268008219 BUSSINGER DANIEL J 7171 LAFAYETTE AVE FORT WASHINGTON PA
MLC686 10268008222 FURROW JUDITH A 14322 THORNWOOD TRAIL HUDSON FL
MLC686 10268008348 SHEA JOHN W 10 BEECHWOOD AVE MILFORD CT
MLC686 10268008381 BUDHU BHAGWANDAT 130 -42 LEFFERTS BOULEVARD OZONE PARK NY
MLC686 10268008419 FATH CHRISTOPHER G 21 CRESCENT STREET TREMONT PA
MLC686 10268008445 SWEARMAN BARRON R 1436 FOUNTAIN GLEN DR BEL AIR MD
MLC686 10268008479 POPER JANET 7 S 6TH ST DEL HAVEN NJ
MLC686 10268008505 JOYCE MICHAEL 51 SHIRLEY ST PEPPERELL MA
MLC686 10268008567 SUHAY ROBERT L 1331 BERRYHILL ST HARRISBURG PA
MLC686 10268008630 TRAVIS DEBORAH L 1397 RENSSELAER AVENUE JACKSONVILLE FL
MLC686 10268008633 THOMPSON DIANA L 722 E CRAWFORD ST LAKELAND FL
MLC686 10268008650 MIAOULIS PRODROMOS 36 HIGHWOOD DR DUMONT NJ
MLC686 10268008658 PASCALE JAMES P 135 CHESTNUT ST LYNBROOK NY
MLC686 10268008661 SMYTHERS BARRY D 4721 PHILLIPS ROAD POMFRET MD
MLC686 10268008703 CONTI THOMAS 3051 CHICORY TER PORT CHARLOTTE FL
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10268000879 06610 24,000.00 23,978.68 11/04/96 10/04/26 355.13 03/04/97 52.1 11.750 242.26
10268003244 22150 183,000.00 181,966.39 11/28/96 10/28/11 175.92 02/28/97 75.6 11.250 2,108.79
10268003613 12549 36,000.00 35,993.52 12/14/96 11/14/26 356.48 03/14/97 80.0 14.050 427.98
10268003962 33870 10,000.00 9,939.66 12/15/96 11/15/11 176.52 03/15/97 81.6 12.350 122.28
10268004284 06237 47,300.00 47,202.26 02/17/97 01/17/12 178.59 03/17/97 89.8 11.750 477.45
10268004527 11216 105,000.00 105,000.00 02/13/97 01/13/12 178.45 02/13/97 75.0 13.100 1,169.72
10268004712 33625 12,000.00 11,991.73 12/26/96 11/26/11 176.88 03/26/97 90.0 11.750 121.13
10268005126 34237 49,215.00 49,215.00 01/16/97 12/16/11 177.53 03/16/97 85.0 12.250 515.72
10268005326 10308 23,600.00 23,600.00 02/28/97 01/28/12 178.95 03/28/97 79.7 14.950 297.47
10268005339 01854 32,000.00 31,836.87 02/02/97 01/02/12 178.09 04/02/97 84.9 12.750 399.63
10268005570 08015 117,000.00 116,519.86 01/24/97 12/24/11 177.80 03/24/97 86.6 10.650 1,083.39
10268005609 10977 75,000.00 74,940.51 02/07/97 01/07/12 178.26 03/07/97 57.6 9.550 785.43
10268005852 07083 150,000.00 150,000.00 03/07/97 02/07/12 179.28 03/07/97 58.8 12.500 1,600.89
10268006124 33707 39,000.00 39,000.00 03/05/97 02/05/27 359.21 03/05/97 75.0 11.750 393.67
10268006255 16033 17,000.00 17,000.00 03/05/97 02/05/12 179.21 03/05/97 79.8 11.250 195.90
10268006283 14416 67,000.00 67,000.00 02/22/97 01/22/12 178.75 03/22/97 74.4 13.800 783.27
10268006317 12550 58,000.00 58,000.00 03/10/97 02/10/12 179.38 03/10/97 65.8 11.000 659.23
10268006583 28304 24,800.00 24,800.00 02/28/97 01/28/12 178.95 02/28/97 79.9 11.500 289.71
10268006631 06382 53,000.00 53,000.00 03/03/97 02/03/17 239.15 03/03/97 89.9 11.950 581.73
10268006727 19701 68,800.00 68,749.72 02/23/97 01/23/12 178.78 03/23/97 80.0 13.500 788.04
10268006815 34653 114,100.00 114,100.00 03/01/97 02/01/17 239.00 03/01/97 58.5 10.750 1,158.38
10268006909 02747 24,150.00 24,092.88 01/16/97 12/16/11 177.53 03/16/97 85.2 12.750 301.59
10268006976 33904 56,100.00 56,100.00 02/17/97 01/17/17 238.59 02/17/97 89.9 11.750 607.96
10268007030 29520 24,000.00 24,000.00 02/07/97 01/07/17 238.26 03/07/97 82.7 12.250 268.46
10268007147 34653 10,600.00 10,598.04 01/16/97 12/16/11 177.53 03/16/97 89.9 11.950 126.88
10268007177 17545 15,000.00 15,000.00 02/06/97 01/06/07 118.22 03/06/97 39.7 13.850 231.55
10268007200 29483 100,000.00 99,956.17 01/24/97 12/24/11 177.80 02/24/97 70.1 10.750 933.48
10268007246 10950 64,000.00 63,951.05 02/01/97 01/01/12 178.00 03/01/97 85.3 11.650 641.12
10268007307 19707 33,000.00 32,959.88 02/23/97 01/23/12 178.78 03/23/97 79.4 13.200 421.88
10268007340 19067 110,000.00 109,725.56 03/01/97 02/01/17 239.00 04/01/97 53.4 10.800 1,120.47
10268007354 18353 110,000.00 110,000.00 02/15/97 01/15/27 358.52 02/15/97 89.4 11.250 1,068.39
10268007405 11373 28,000.00 28,000.00 02/21/97 01/21/17 238.72 02/21/97 89.9 12.500 318.12
10268007441 19464 102,000.00 101,974.10 02/15/97 01/15/17 238.52 03/15/97 85.0 9.400 944.12
10268007567 11235 144,500.00 144,500.00 02/16/97 01/16/12 178.55 03/16/97 85.0 10.850 1,359.75
10268007599 8514 65,000.00 64,967.44 02/28/97 01/28/12 178.95 03/28/97 42.2 10.750 606.76
10268007603 11420 36,300.00 35,003.05 01/23/97 12/23/11 177.76 04/23/97 89.9 12.500 387.41
10268007607 15683 75,100.00 74,957.54 03/03/97 02/03/12 179.15 04/03/97 74.3 9.390 625.46
10268007626 27604 10,000.00 9,954.80 02/27/97 01/27/07 118.92 03/27/97 89.6 10.750 136.34
10268007643 13329 58,500.00 58,500.00 03/07/97 02/07/12 179.28 03/07/97 68.8 12.000 601.74
10268007816 11940 60,000.00 60,000.00 03/10/97 02/10/12 179.38 03/10/97 58.8 9.800 637.44
10268007859 19149 15,300.00 15,300.00 03/12/97 02/12/17 239.44 03/12/97 89.8 11.750 165.81
10268007869 15022 102,400.00 102,035.15 02/17/97 01/17/12 178.59 03/17/97 89.0 10.650 1,141.47
10268007993 15301 110,600.00 110,600.00 02/21/97 01/21/12 178.72 03/21/97 89.9 11.750 1,116.41
10268008139 17554 33,000.00 33,000.00 02/02/97 01/02/12 178.09 03/02/97 80.6 14.150 394.93
10268008199 12206 25,300.00 25,300.00 03/05/97 02/05/12 179.21 03/05/97 75.2 10.500 279.67
10268008219 19034 157,500.00 157,500.00 03/10/97 02/10/27 359.38 03/10/97 70.0 9.300 1,301.42
10268008222 34669 59,250.00 59,250.00 03/07/97 02/07/27 359.28 03/07/97 68.1 10.500 541.98
10268008348 06460 114,750.00 114,750.00 03/01/97 02/01/12 179.00 03/01/97 81.9 13.050 1,273.85
10268008381 11420 29,000.00 29,000.00 03/03/97 02/03/17 239.15 03/03/97 89.8 12.750 334.61
10268008419 17981 16,000.00 16,000.00 03/01/97 02/01/12 179.00 03/01/97 80.0 13.500 207.73
10268008445 21015 21,050.00 21,024.00 02/15/97 01/15/12 178.52 03/15/97 85.0 11.100 240.58
10268008479 08251 20,000.00 20,000.00 03/01/97 02/01/12 179.00 03/01/97 30.7 11.500 233.64
10268008505 01463 15,701.00 15,628.35 02/06/97 01/06/17 238.22 04/06/97 90.0 11.750 170.15
10268008567 17104 28,000.00 28,000.00 03/01/97 02/01/12 179.00 03/01/97 58.3 12.000 336.05
10268008630 32205 20,650.00 20,598.57 03/01/97 02/01/17 239.00 04/01/97 71.2 11.000 213.15
10268008633 33805 47,600.00 47,600.00 03/01/97 02/01/27 359.00 03/01/97 85.0 10.250 426.54
10268008650 07628 52,800.00 52,721.56 02/24/97 01/24/12 178.82 03/24/97 84.8 13.700 692.55
10268008658 11563 37,600.00 37,527.80 02/27/97 01/27/12 178.92 03/27/97 79.9 11.500 439.24
10268008661 20616 129,200.00 129,200.00 03/06/97 02/06/17 239.24 03/06/97 85.0 10.000 1,246.81
10268008703 33983 30,000.00 30,000.00 01/23/97 12/23/11 177.76 02/23/97 51.7 9.550 314.17
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 12
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MLC686 10268008716 KNIGHT RONALD 7208 KIRTLEY TRL CULPEPER VA
MLC686 10268008775 BANGE ELAINE D 47 EAST PERIWNKLE LANE NEWARK DE
MLC686 10268008804 SMITH WAYNE C SR 420 SPRING ST MC KEESPORT PA
MLC686 10268008813 SHEPARD MAUREEN 45 SOUTHWICK ST AGAWAM MA
MLC686 10268008861 FENIQUITO SUSAN 30 THE KEEL EAST ISLIP NY
MLC686 10268008866 RODRIGUEZ TARA A 64 CHAUCER ST HARTSDALE NY
MLC686 10268008926 GERDIS JOHN J 79 BISHOPS CURVE BERLIN CT
MLC686 10268009006 OLIVA ELIO 2782 SOUTHWEST 32ND COURT MIAMI FL
MLC686 10268009012 WILLIAMS MARY ALICE CAMP 690 SMITH STORE RD COVINGTON GA
MLC686 10268009015 WILSON ELIZABETH 5405 AUDUBON RD BETHESDA MD
MLC686 10268009052 SAFDIEH JEFFREY J 2210 AVENUE S BROOKLYN NY
MLC686 10268009059 ROBERTS BEDFORDE 120 -11 171ST STREET JAMAICA NY
MLC686 10268009115 SWEETSER NANCY R 67 TOILSOME LN EAST HAMPTON NY
MLC686 10268009152 DAVIS MARIE G LOUDEN 2041 JASMINE RD BALTIMORE MD
MLC686 10268009172 MCCONNELL CARL L JR 14050 SLICHTER AVENUE PORT CHARLOTTE FL
MLC686 10268009288 MITCHELL ANTHONY F 709 DUNSTER AVENUE PITTSBURGH PA
MLC686 10268009295 MITCHELL ANTHONY 1105 GLADYS AVENUE PITTSBURGH PA
MLC686 10268009303 MORALES JOHN 57 W 7TH ST LAKE RONKONKOMA NY
MLC686 10268009307 MITCHELL ANTHONY F 2119 SHIRAS AVENUE PITTSBURGH PA
MLC686 10268009309 POLITE DONALD 6013 MOONGATE RD SPRING HILL FL
MLC686 10268009316 CIESLA JOSEPH J 802 LOALAN AVE BALTIMORE MD
MLC686 10268009317 YOUNG MARY ANN 535 MARSH RUN RD NEW CUMBERLAND PA
MLC686 10268009335 VASSEY AL C. 301 OAKWOOD STREET BENNETTSVILLE SC
MLC686 10268009356 CONKEY JAMES L 3208 BERN COURT LAGUNA BEACH CA
MLC686 10268009368 LEHEW MARTIN 1351 MCNEAL RD SPRING HILL FL
MLC686 10268009370 TILLI JOSEPH L 1773 BLUSH COURT EASTON PA
MLC686 10268009380 WILLIAMS ROBERT E 10415 VALENCIA ROAD N SEMINOLE FL
MLC686 10268009416 MIRTO ROBERT A SR 517 JOHNS PASS AVENUE MADEIRA BEACH FL
MLC686 10268009429 DICORTE JOYCE 7300 BALTUSROL DR NEW PORT RICHEY FL
MLC686 10268009430 BAYNE CECIL MICHAEL 485 MARCONI BLVD COPIAGUE NY
MLC686 10268009496 BRUSH WILLIAM I JR 454 EAST ORANGE STREET TARPON SPRINGS FL
MLC686 10268009522 WHITT DEWEY L 3650 SHARP RD GLENWOOD MD
MLC686 10268009524 JALAS MIRIAM 5204 19TH AVE BROOKLYN NY
MLC686 10268009614 MARTINS MARIA J 56 CORNET STETSON RD HANOVER MA
MLC686 10268009641 SAPPERSTEIN STEVEN 3033 JUDITH DR BELLMORE NY
MLC686 10268009654 CAMERON JOYCE M 312 10TH AVE INDIAN ROCKS BEACH FL
MLC686 10268009665 MAKOWICKI GRETCHEN 15 HIGH ST ESSEX CT
MLC686 10268009671 MCDONALD JAY S 29 ALDRICH ST SAYVILLE NY
MLC686 10268009674 DERRICO MARK JOSEPH 10720 ELMBROOK COURT RALEIGH NC
MLC686 10268009680 VIELHABER ROBERT F 5807 NYSTROM STREET NEW CARROLLTON MD
MLC686 10268009688 STAHL ORVILLE W JR RR 1 BOX 366 MILTON PA
MLC686 10268009701 VICKERS SHERRY ROBERTS 4713 36TH AVE N SAINT PETERSBURG FL
MLC686 10268009719 PIOTROWSKI ELAINE A 220 W SHORE RD OAKDALE NY
MLC686 10268009746 JONES PHILIP 137-15 158TH STREET ROCHEDALE VILLAGE NY
MLC686 10268009751 HART WENDELL M 323 UPSHUR ST NW WASHINGTON DC
MLC686 10268009767 ORDEN MARGARET JEAN 224 RAMONA DRIVE FAYETTEVILLE NC
MLC686 10268009801 QUINN ELAINE C 815 BELLAIRE AVENUE PITTSBURGH PA
MLC686 10268009802 SMITH TIMOTHY M 40 WHITNEY DR WOODSTOCK NY
MLC686 10268009803 MUIR ROSE 594 SOUTHERN PKWY UNIONDALE NY
MLC686 10268009804 VICTOR LOUISNER 455 PLATTEKILL ROAD WALLKILL NY
MLC686 10268009805 MATOS PAULA 1220 HALSEY ST BROOKLYN NY
MLC686 10268009811 MCPHERSON ROBERT 78 WINWARD LN SHALIMAR FL
MLC686 10268009819 VALENTINE THERESA 12 COPPER MINE RD FARMINGTON CT
MLC686 10268009872 SYMMES FORREST C III 111 NATSISKY FARM RD SOUTH WINDSOR CT
MLC686 10268009877 CARFORA JAMES 31 WILSON AVE RIVERHEAD NY
MLC686 10268009910 QUICK RALPH 108 WALTERS STREET MCCOLL SC
MLC686 10268009937 BRUBAKER JAMES W JR 217 EVANS AVENUE BLAIRSVILLE PA
MLC686 10268009945 COFFEY MITCHELL 802 TAYLOR AVE EAST PATCHOGUE NY
MLC686 10268009980 WASHINGTON ALLEINE 99-15 193RD STREET HOLLIS NY
MLC686 10268009981 SHARON JACOB 19 CORONET LN PLAINVIEW NY
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10268008716 22701 69,000.00 69,000.00 02/11/97 01/11/12 178.39 03/11/97 74.1 13.290 778.95
10268008775 19711 32,500.00 32,500.00 03/10/97 02/10/12 179.38 03/10/97 88.7 11.750 328.06
10268008804 15132 41,000.00 41,000.00 03/11/97 02/11/17 239.41 03/11/97 73.2 13.000 480.35
10268008813 01030 28,200.00 28,200.00 02/06/97 01/06/12 178.22 02/06/97 89.0 11.850 335.73
10268008861 11730 145,000.00 145,000.00 01/26/97 12/26/11 177.86 02/26/97 73.9 11.000 1,648.06
10268008866 10530 36,000.00 36,000.00 03/04/97 02/04/17 239.18 03/04/97 69.9 11.600 386.40
10268008926 06037 28,000.00 28,000.00 02/06/97 01/06/12 178.22 03/06/97 69.7 11.950 335.15
10268009006 33133 67,400.00 67,400.00 03/12/97 02/12/12 179.44 03/12/97 85.1 12.350 824.15
10268009012 30209 46,000.00 46,000.00 02/08/97 01/08/12 178.29 03/08/97 69.1 12.750 499.88
10268009015 20814 115,000.00 115,000.00 03/10/97 02/10/17 239.38 03/10/97 74.9 11.700 1,242.28
10268009052 11229 57,000.00 57,000.00 02/20/97 01/20/12 178.68 03/20/97 85.0 10.550 523.53
10268009059 11434 25,000.00 24,980.86 02/23/97 01/23/12 178.78 03/23/97 86.0 11.550 248.53
10268009115 11937 64,000.00 63,905.03 02/23/97 01/23/12 178.78 03/23/97 79.9 13.750 745.67
10268009152 21222 26,400.00 26,389.21 02/27/97 01/27/12 178.92 03/27/97 60.0 12.350 278.69
10268009172 33953 96,000.00 96,000.00 03/04/97 02/04/12 179.18 03/04/97 80.0 10.750 896.14
10268009288 15226 20,826.00 20,792.87 02/13/97 01/13/17 238.45 03/13/97 70.2 11.000 214.96
10268009295 15216 18,177.00 18,177.00 02/17/97 01/17/17 238.59 02/17/97 70.0 11.000 187.62
10268009303 11779 15,000.00 14,952.02 02/28/97 01/28/12 178.95 03/28/97 89.9 11.350 173.80
10268009307 15216 26,030.00 25,988.68 02/13/97 01/13/17 238.45 03/13/97 69.5 11.000 268.68
10268009309 34606 30,800.00 30,800.00 02/27/97 01/27/12 178.92 02/27/97 89.9 11.550 360.78
10268009316 21222 67,500.00 67,500.00 03/05/97 02/05/17 239.21 03/05/97 88.8 11.250 708.25
10268009317 17070 68,000.00 67,926.13 02/28/97 01/28/17 238.95 03/28/97 77.2 10.400 674.34
10268009335 29512 22,400.00 22,400.00 03/05/97 02/05/12 179.21 03/05/97 62.9 12.500 276.08
10268009356 92651 58,000.00 57,899.03 02/27/97 01/27/17 238.92 03/27/97 78.9 13.100 683.65
10268009368 34608 25,000.00 25,000.00 02/22/97 01/22/12 178.75 02/22/97 49.0 10.850 281.80
10268009370 18045 138,450.00 138,450.00 02/17/97 01/17/27 358.59 03/17/97 84.9 11.990 1,423.05
10268009380 35642 26,000.00 26,000.00 02/22/97 01/22/12 178.75 02/22/97 43.3 10.950 294.70
10268009416 33708 54,500.00 54,500.00 02/27/97 01/27/12 178.92 02/27/97 59.0 11.500 539.71
10268009429 34654 71,100.00 71,100.00 02/27/97 01/27/27 358.92 02/27/97 88.8 11.300 693.27
10268009430 11726 78,000.00 78,000.00 03/12/97 02/12/27 359.44 03/12/97 60.0 11.600 778.38
10268009496 34689 25,000.00 25,000.00 03/07/97 02/07/12 179.28 03/07/97 53.9 11.250 288.09
10268009522 21738 67,000.00 67,000.00 02/28/97 01/28/12 178.95 02/28/97 79.6 10.100 592.93
10268009524 11204 100,000.00 100,000.00 02/21/97 01/21/12 178.72 02/21/97 69.8 11.250 971.26
10268009614 2339 31,000.00 31,000.00 03/01/97 02/01/12 179.00 03/01/97 79.2 13.000 392.22
10268009641 11710 100,000.00 100,000.00 03/03/97 02/03/12 179.15 03/03/97 69.4 11.000 952.32
10268009654 33785 65,100.00 65,100.00 02/21/97 01/21/12 178.72 02/21/97 71.7 12.500 694.78
10268009665 6426 25,000.00 24,971.05 02/22/97 01/22/12 178.75 03/22/97 59.6 11.990 299.88
10268009671 11782 30,000.00 29,851.64 02/28/97 01/28/12 178.95 03/28/97 88.9 11.350 347.60
10268009674 27614 43,500.00 43,500.00 03/01/97 02/01/12 179.00 03/01/97 90.0 10.850 490.33
10268009680 20784 48,000.00 48,000.00 02/17/97 01/17/27 358.59 03/17/97 35.5 10.400 435.49
10268009688 17847 76,500.00 76,338.28 03/01/97 02/01/27 359.00 04/01/97 85.0 12.500 816.45
10268009701 33713 44,000.00 43,844.27 03/01/97 02/01/27 359.00 04/01/97 70.9 9.850 381.26
10268009719 11769 51,000.00 50,946.73 02/28/97 01/28/12 178.95 03/28/97 89.8 12.050 526.56
10268009746 11434 175,500.00 175,500.00 03/10/97 02/10/12 179.38 03/10/97 90.0 11.050 1,677.96
10268009751 20011 33,000.00 32,989.11 02/22/97 01/22/12 178.75 03/22/97 79.8 15.500 473.22
10268009767 28303 53,600.00 53,600.00 03/04/97 02/04/27 359.18 03/04/97 80.0 10.350 484.30
10268009801 15226 36,000.00 36,000.00 03/10/97 02/10/12 179.38 03/10/97 42.3 10.750 336.05
10268009802 12498 18,750.00 18,728.77 12/20/96 11/20/16 236.68 03/20/97 90.0 11.150 195.45
10268009803 11553 126,500.00 126,263.26 01/10/97 12/10/16 237.34 03/10/97 80.0 9.800 1,204.04
10268009804 12589 23,000.00 23,000.00 12/27/96 11/27/16 236.91 02/27/97 79.8 11.000 237.40
10268009805 11207 65,000.00 64,861.27 01/13/97 12/13/16 237.44 03/13/97 46.4 9.800 618.68
10268009811 32579 24,500.00 24,473.35 02/28/97 01/28/17 238.95 03/28/97 84.6 12.500 278.35
10268009819 06032 239,400.00 239,057.42 12/22/96 11/22/11 176.75 03/22/97 90.0 11.250 2,325.20
10268009872 06074 47,000.00 47,000.00 02/22/97 01/22/17 238.75 03/22/97 88.0 11.950 515.87
10268009877 11901 40,400.00 40,400.00 03/04/97 02/04/17 239.18 03/04/97 70.8 10.400 400.64
10268009910 29570 32,400.00 32,400.00 03/01/97 02/01/12 179.00 03/01/97 90.0 10.850 365.21
10268009937 15717 74,125.00 73,952.40 02/21/97 01/21/12 178.72 03/21/97 85.6 11.000 842.50
10268009945 11772 32,960.00 32,960.00 02/17/97 01/17/12 178.59 03/17/97 80.0 12.600 354.33
10268009980 11423 153,000.00 153,000.00 03/01/97 02/01/12 179.00 03/01/97 90.0 12.250 1,603.28
10268009981 11803 216,000.00 216,000.00 02/28/97 01/28/12 178.95 02/28/97 78.5 9.750 2,288.22
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 13
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MLC686 10268009990 FARLEY CARL E JR 1967 MCKINLEY ST CLEARWATER FL
MLC686 10268009996 BROOME LINDA 1759 IMPERIAL PALM DR APOPKA FL
MLC686 10268010018 STONE FREDERICK 24259 BALMORAL LN BROOKSVILLE FL
MLC686 10268010048 BONORDEN THOMAS A 17404 LAFAYETTE DRIVE OLNEY MD
MLC686 10268010050 GALE DORITT 34 OAKLAND ST IRVINGTON NJ
MLC686 10268010084 GALLAGHER EILEEN F 1791 WHITEBRIAR ROAD SOUTHAMPTON PA
MLC686 10268010127 DIARCANGELO BARBARA J 139 CHESTER AVE PHOENIXVILLE PA
MLC686 10268010221 DAVIS JERRY M 7807 ELLIOTT RD SEBRING FL
MLC686 10268010272 BOIM JEFFREY 5 HOLLY LN ROSLYN HEIGHTS NY
MLC686 10268010287 ALBERTSON JEFFREY A 639 W PINE AVE BLOOMSBURG PA
MLC686 10268010290 STOTLER DONNA J 17513 GENERAL STONEWALL JACKS SHARPSBURG MD
MLC686 10268010292 SMITH NORMAN L 453 W OLEY ST READING PA
MLC686 10268010297 GUERRA JAMES ALAN 349 BOX 83 SECOND STREET PLEASANTVILLE PA
MLC686 10268010355 SIEBER KELLY 9079 VICKSBURG ROAD SPRING HILL FL
MLC686 10268010359 CLAY MARGARET ANNE 8943 BEL MEADOW WAY NEW PORT RICHEY FL
MLC686 10268010374 DOLMAN ANDREW 279 BEDFORD AVE MOUNT VERNON NY
MLC686 10268010390 PETRILLO ROCCO J JR 945 REAR NORTH IRVING ST SCRANTON PA
MLC686 10268010413 JOHNSON PATRICIA A 25 HILLBROOK CIR MALVERN PA
MLC686 10268010563 BOBER BERNARD I 11753 NORTHWEST 26TH COURT CORAL SPRINGS FL
MLC686 10268010603 WERNER EDWARD J JR 14 OCEAN AVE CENTER MORICHES NY
MLC686 10268010641 WILSON CARL B 12902 PRESTWICK DRIVE RIVERVIEW FL
MLC686 10268010739 THENG GIOK L 1105 KNOLLWOOD DRIVE SAFETY HARBOR FL
MLC686 10268010740 CIESLAK MARTIN 4870 WILDE POINTE DR SARASOTA FL
MLC686 10268010907 COLON LUIS 10680 CANAL ST FORT MYERS FL
MLC686 10268010913 MCDANIEL THURMAN RAY 4216 ROWAN ROAD BROOKSVILLE FL
MLC686 10268010914 ACTON ROBERT C 7061 RADBOURNE AVENUE UPPER DARBY PA
MLC686 10268010915 YOURKONIS MARY W 4546 PEACH ST ERIE PA
MLC686 10268010984 BREHME JAMES J 2301 GRANADA CIRCLE WEST SAINT PETERSBURG FL
MLC686 10268011004 COORSSEN EUGENIA B 5910 MIDDLE AVE SARASOTA FL
MLC686 10268011039 SCHLOSSBERG ROBERT 191 BOGERT RD RIVER EDGE NJ
MLC686 10268011148 LENNON GERALD 1621 26TH AVE N SAINT PETERSBURG FL
MLC686 10268011154 NURCZYK JOHN R 28 SAMUEL HILL RD COLUMBIA CT
MLC686 10268011213 LACORTE MICHAEL 166 MOHAWK AVE DEER PARK NY
MLC686 10268011279 FALKNER JAMES W 15203 LAKE MAURINE DR ODESSA FL
MLC686 10268011322 LOUKAIDES LEONIDAS 27922 GOLDEN RIDGE LANE SAN JUAN CAPISTRANO CA
MLC686 10268011361 SIMERLY GARRY L 601 LAKE AVE LAKE LUZERNE NY
MLC686 10268011737 OLIVERE JAMES VICTOR 7465 EAST STONE CREEK LANE ANAHEIM CA
MLC686 10268012284 RAMOS MERLE A 2830 PEPPERMINT DRIVE TUCKER GA
------------------------------------------------
158 Sale Total
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10268009990 34625 14,000.00 14,000.00 03/01/97 02/01/12 179.00 03/01/97 79.5 10.500 154.76
10268009996 32712 12,200.00 12,049.56 02/28/97 01/28/12 178.95 03/28/97 86.6 11.250 140.59
10268010018 34601 70,000.00 69,942.27 02/21/97 01/21/27 358.72 03/21/97 64.2 10.150 622.07
10268010048 20832 55,000.00 54,940.30 02/28/97 01/28/12 178.95 03/28/97 78.6 11.500 544.66
10268010050 07111 76,500.00 76,500.00 03/01/97 02/01/12 179.00 03/01/97 85.0 12.000 786.89
10268010084 18966 39,000.00 39,000.00 03/10/97 02/10/12 179.38 03/10/97 84.4 11.850 464.31
10268010127 19460 66,000.00 66,000.00 03/01/97 02/01/12 179.00 03/01/97 69.4 9.950 576.76
10268010221 33870 49,000.00 49,000.00 03/01/97 02/01/17 239.00 03/01/97 52.1 11.000 505.77
10268010272 11577 40,000.00 40,000.00 02/27/97 01/27/12 178.92 02/27/97 80.8 11.750 403.76
10268010287 17815 49,500.00 49,440.34 11/04/96 10/04/26 355.13 03/04/97 90.0 12.250 518.71
10268010290 21782 112,000.00 112,000.00 02/23/97 01/23/12 178.78 03/23/97 80.0 11.700 1,126.25
10268010292 19601 31,200.00 31,200.00 01/26/97 12/26/26 357.86 02/26/97 80.0 13.490 357.12
10268010297 16341 26,036.00 26,012.22 12/27/96 11/27/16 236.91 02/27/97 89.5 12.750 300.41
10268010355 34608 11,700.00 11,700.00 03/01/97 02/01/12 179.00 03/01/97 84.9 12.500 144.21
10268010359 34655 10,000.00 10,000.00 03/03/97 02/03/12 179.15 03/03/97 78.8 13.250 128.17
10268010374 10553 222,300.00 222,300.00 03/05/97 02/05/12 179.21 03/05/97 90.0 11.050 2,125.42
10268010390 18510 21,500.00 20,914.90 12/04/96 11/04/16 236.15 03/04/97 84.3 10.250 211.05
10268010413 19355 75,794.00 75,794.00 03/05/97 02/05/17 239.21 03/05/97 90.0 11.350 800.47
10268010563 33065 28,000.00 28,000.00 03/11/97 02/11/12 179.41 03/11/97 90.0 11.750 331.56
10268010603 11934 33,620.00 33,620.00 03/05/97 02/05/12 179.21 03/05/97 85.9 12.250 352.30
10268010641 33569 15,600.00 15,600.00 03/07/97 02/07/12 179.28 03/07/97 79.9 12.100 188.23
10268010739 34695 42,000.00 42,000.00 03/10/97 02/10/17 239.38 03/10/97 85.5 11.990 462.16
10268010740 34233 32,700.00 32,700.00 03/01/97 02/01/17 239.00 03/01/97 89.9 10.950 336.41
10268010907 33908 36,000.00 36,000.00 03/05/97 02/05/12 179.21 03/05/97 80.0 10.750 403.54
10268010913 34609 38,000.00 37,800.48 03/10/97 02/10/27 359.38 04/10/97 84.4 10.850 357.58
10268010914 19082 35,200.00 35,188.67 01/09/97 12/09/11 177.30 03/09/97 80.0 13.250 396.27
10268010915 16509 48,000.00 47,704.90 01/11/97 12/11/11 177.37 03/11/97 80.0 9.400 498.34
10268010984 33712 81,600.00 81,600.00 03/01/97 02/01/12 179.00 03/01/97 85.0 12.000 839.35
10268011004 34243 67,350.00 67,350.00 03/10/97 02/10/27 359.38 03/10/97 31.6 10.250 603.52
10268011039 07661 41,500.00 41,500.00 03/05/97 02/05/12 179.21 03/05/97 89.9 9.990 445.71
10268011148 33713 28,000.00 27,938.65 03/03/97 02/03/27 359.15 04/03/97 59.5 9.800 241.59
10268011154 06237 30,000.00 30,000.00 02/01/97 01/01/17 238.00 03/01/97 84.4 12.750 346.14
10268011213 11729 30,000.00 29,969.67 01/20/97 12/20/16 237.67 03/20/97 51.1 12.000 330.33
10268011279 33556 51,300.00 51,300.00 03/04/97 02/04/12 179.18 03/04/97 89.9 11.350 594.40
10268011322 92675 151,000.00 151,000.00 03/11/97 02/11/17 239.41 03/11/97 85.6 12.500 1,715.57
10268011361 12846 119,000.00 118,898.54 01/19/97 12/19/16 237.63 02/19/97 85.0 13.250 1,415.42
10268011737 92808 105,000.00 105,000.00 03/12/97 02/12/17 239.44 03/12/97 82.1 10.550 1,051.83
10268012284 30084 40,000.00 40,000.00 03/12/97 02/12/17 239.44 03/12/97 78.9 11.250 419.70
----------------------------------- ------- ----------------------------
9,226,884.00 9,218,673.00 217.61 77.7 11.403 96,353.59
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 14
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
ML687 10266120526 BELCHER MILTON DON JR 2990 HAYSTACK DRIVE COLORADO SPRINGS CO
ML687 10266128764 ALLEN WALTER F 101 MARIO DRIVE TROTWOOD OH
ML687 10266130280 NISSLEY DARYL D 430 PEARL STREET LANCASTER PA
ML687 10266130621 SCOTT KENNETH LAMONT 600 EDWARDS BENTON HARBOR MI
ML687 10266130720 YEHLING TERRY A 4318 S SILVER BEECH AVENUE TUCSON AZ
ML687 10266131968 GOODNIGHT JAMES W 610 14TH ST. BAY CITY MI
ML687 10266132273 FORMICA WILLIAM A III 1989 GLENDOWER DRIVE LANCASTER PA
ML687 10266134280 JOCK GARY E 5666 STRINGFELLOW ROAD SAINT JAMES CITY FL
ML687 10266135141 HAAS JOHN E 405 SOUTH 19TH STREET HARRISBURG PA
ML687 10266137927 GARDNER CLARENCE JAMES 2915 WEST 1100 NORTH VERNAL UT
ML687 10266138023 RICHARDSON CHRISTINE D 1152 SEWARD AVENUE AKRON OH
ML687 10266138333 TIMM ROY CHARLES 1378 7TH STREET OGDEN UT
ML687 10266138730 FOGARTIE ARTHUR F 3661 WOODHAVEN LANE IDAHO FALLS ID
ML687 10266138739 SILK DONALD V 339 LOCKWOOD DRIVE SHIRLEY NY
ML687 10266138741 BOVEE ROBERT 8 KOLA DRIVE SAG HARBOR NY
ML687 10266139220 DAVIS RICHARD K 505 W. WASHINGTON YORKVILLE IL
ML687 10266139324 TULIEN THOMAS M 2545 PILLSBURY AVENUE MINNEAPOLIS MN
ML687 10266139381 LIVERMORE JAMES L 2736 CONDOR COURT UNION CITY CA
ML687 10266139535 CLEMENT ROSEMARY 11338 EASY STREET REDDING CA
ML687 10266139623 HARRISON JOHN 500 SOUTH COURT STREET VISALIA CA
ML687 10266140015 ALEXANDER SCOTT E 10355 E CHOLLA STREET SCOTTSDALE AZ
ML687 10266140021 RODSETH BARBARA J 4809 NORTH HERMITAGE AVENUE CHICAGO IL
ML687 10266140095 JACKSON ULIE 16500 OHIO DETROIT MI
ML687 10266140120 QUICK REBECCA A 1281 DODD ROAD MENDOTA HEIGHTS MN
ML687 10266140188 JACKSON GARREL 46015 CHATSWORTH DRIVE BELLEVILLE MI
ML687 10266140235 STALEY MICHAEL R 584 SOUTH RIO DRIVE CHANDLER AZ
ML687 10266140244 BASFORD JOHN A 4975 BONITA PARK TRAIL EVERGREEN CO
ML687 10266140248 MONTGOMERY TONIA D 286 DEER TRAIL ROAD FLORISSANT CO
ML687 10266140263 ROMPH KEVIN DEAN 2256 WEST HOBBS DRIVE SOUTH JORDAN UT
ML687 10266140272 PAVALOCK ELLEN J 205 POPLAR STREET TURNERSVILLE NJ
ML687 10266140274 SINGH COOBLAL 146-48 184TH STREET SPRINGFIELD GARDENS NY
ML687 10266140302 WEBB SCOTTIE GENE 2654 COOPER POINTE CIRCLE INDIANAPOLIS IN
ML687 10266140423 RAMIREZ JESUS J 3833 SOUTH 6250 WEST WEST VALLEY CITY UT
ML687 10266140458 WELCH KEVYN N 3820 NORTH RUGBY DRIVE BOISE ID
ML687 10266140532 CHRISTENSEN KENNETH C 10366 HAWKE LANE NEVADA CITY CA
ML687 10266140596 LONGORIA JOSE GERADO T 3735 WALL ALLEN PARK MI
ML687 10266140599 PATRICK DIANA L 4114 146TH AVENUE NW ANDOVER MN
ML687 10266140746 LACONTO MICHAEL A 1298 SOUTH JULIAN STREET DENVER CO
ML687 10266140747 ROBINSON KENNETH W 2562 WEST 12820 SOUTH RIVERTON UT
ML687 10266140774 BATIZ RENE M 1553 WEST 60TH PLACE LOS ANGELES CA
ML687 10266140811 EDDIE LARRY 1230 EAST 168TH STREET CLEVELAND OH
ML687 10266140965 OSZCZEPINSKI JANINA 4950 S. HERMITAGE CHICAGO IL
ML687 10266141034 FLOOD JEFFERY B 1414 HENRY AVENUE BREMERTON WA
ML687 10266141041 SCOURFIELD-T GLYN WILLIAM 8 HONEY LOCUST LITTLETON CO
ML687 10266141081 HEATH NOVELLA 768 MARYLAND ST. GARY IN
ML687 10266141183 KUCINSKI MARTIN E 631 MAPLE AVENUE DOWNERS GROVE IL
ML687 10266141275 MATTHIESEN MICHAEL C 3310 EAST TURQUOISE AVENUE PHOENIX AZ
ML687 10266141361 RICHARDS MICHAEL R 2647 SOUTH 1700 EAST SALT LAKE CITY UT
ML687 10266141367 THALKEN CHARLES R 1411 SOUTH VALENTINE WAY LAKEWOOD CO
ML687 10266141378 MORRISON R DEAN 2887 SOUTH 3000 WEST WEST HAVEN UT
ML687 10266141452 BROSSEAU ALAN P 9028 W. 89TH ST. HICKORY HILLS IL
ML687 10266141607 PARSON JON M 250 SILVER LOOP SILVERTON OR
ML687 10266141647 FOLDEN REDITH 213-215 EAST NINTH AVENUE COLUMBUS OH
ML687 10266141656 SHULTZ NANCY M 1204 ROMIG AVENUE BARBERTON OH
ML687 10266141671 MUELLER RODNEY L 398 THOMAS STREET FOND DU LAC WI
ML687 10266141698 PLETT PAUL C 7620 FLETCHER BAY ROAD NE BAINBRIDGE ISLAND WA
ML687 10266141741 MUNFORD ROGER T 1688 EAST WINWARD DRIVE SALT LAKE CITY UT
ML687 10266141778 HOLMES JEFFREY J 2724 LARK DRIVE COLORADO SPRINGS CO
ML687 10266141779 AMERLING GREGORY G 2139 17TH AVENUE SW ALBANY OR
ML687 10266141780 JONES BILLY K 12531 SOUTH BEAR CASTLE COVE DRAPER UT
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10266120526 80922 35,000.00 34,639.55 09/01/96 08/01/11 173.00 03/01/97 89.7 11.650 412.21
10266128764 45426 65,700.00 65,684.94 10/18/96 09/18/26 354.61 02/18/97 90.0 11.750 663.18
10266130280 17603 46,900.00 46,817.13 11/23/96 10/23/26 355.76 03/23/97 70.0 10.700 436.04
10266130621 49022 12,700.00 12,621.47 11/18/96 10/18/11 175.59 03/18/97 84.6 11.650 149.57
10266130720 85730 12,000.00 11,935.92 11/14/96 10/14/11 175.46 03/14/97 83.0 12.750 149.86
10266131968 48708 11,000.00 10,912.61 11/14/96 10/14/11 175.46 03/14/97 30.5 11.000 125.03
10266132273 17601 69,650.00 69,487.50 12/01/96 11/01/11 176.00 04/01/97 89.9 11.400 684.43
10266134280 33956 59,500.00 59,387.60 12/06/96 11/06/26 356.22 03/06/97 85.0 9.400 495.97
10266135141 17103 27,600.00 27,303.43 11/17/96 10/17/11 175.56 03/17/97 60.0 10.500 305.09
10266137927 84078 26,000.00 26,000.00 03/01/97 02/01/12 179.00 03/01/97 80.8 11.500 257.48
10266138023 44320 24,700.00 24,700.00 01/17/97 12/17/26 357.57 02/17/97 54.8 14.000 292.66
10266138333 84404 19,000.00 19,000.00 03/01/97 02/01/12 179.00 03/01/97 82.6 12.350 232.33
10266138730 83404 51,200.00 51,200.00 02/01/97 01/01/12 178.00 03/01/97 85.0 13.000 566.38
10266138739 11967 21,000.00 21,000.00 03/25/97 02/25/07 119.87 03/25/97 79.2 11.950 300.68
10266138741 11963 22,600.00 22,600.00 03/14/97 02/14/07 119.51 03/14/97 81.7 12.500 330.81
10266139220 60560 41,900.00 41,827.83 02/23/97 01/23/17 238.78 03/23/97 77.8 13.500 505.89
10266139324 55404 62,900.00 62,900.00 03/20/97 02/20/17 239.70 03/20/97 85.1 12.000 692.58
10266139381 94587 37,318.00 37,318.00 02/01/97 01/01/12 178.00 03/01/97 80.0 13.990 441.88
10266139535 96001 39,500.00 39,500.00 04/01/97 03/01/12 180.00 04/01/97 83.8 11.575 393.43
10266139623 93277 30,000.00 30,000.00 04/01/97 03/01/12 180.00 04/01/97 75.9 12.550 321.34
10266140015 85260 54,000.00 54,000.00 04/01/97 03/01/12 180.00 04/01/97 85.0 12.750 586.81
10266140021 60640 41,100.00 41,026.47 02/23/97 01/23/12 178.78 03/23/97 84.7 12.750 446.63
10266140095 48221 53,200.00 53,200.00 02/23/97 01/23/12 178.78 02/23/97 70.0 9.600 558.74
10266140120 55118 34,300.00 34,300.00 03/10/97 02/10/12 179.38 03/10/97 85.5 12.350 362.08
10266140188 48111 55,000.00 55,000.00 03/10/97 02/10/17 239.38 03/10/97 63.9 11.500 586.54
10266140235 85225 18,000.00 18,000.00 02/28/97 01/28/17 238.95 02/28/97 82.7 13.700 219.92
10266140244 80439 31,737.00 31,737.00 04/01/97 03/01/12 180.00 04/01/97 84.7 12.750 396.34
10266140248 80816 16,000.00 16,000.00 04/01/97 03/01/12 180.00 04/01/97 86.5 11.350 185.39
10266140263 84095 64,868.00 63,921.21 03/01/97 02/01/12 179.00 04/01/97 85.0 13.700 753.23
10266140272 08012 64,800.00 64,752.91 02/08/97 01/08/27 358.29 03/08/97 80.0 15.000 819.36
10266140274 11413 16,300.00 16,300.00 03/10/97 02/10/12 179.38 03/10/97 90.0 10.990 185.16
10266140302 46268 10,300.00 10,300.00 02/08/97 01/08/12 178.29 02/08/97 79.9 14.000 137.17
10266140423 84128 25,795.00 25,795.00 04/01/97 03/01/12 180.00 04/01/97 84.9 11.500 301.33
10266140458 83704 31,198.00 31,198.00 03/03/97 02/03/12 179.15 03/03/97 84.7 13.350 401.94
10266140532 95959 80,900.00 80,900.00 03/01/97 02/01/12 179.00 03/01/97 80.2 11.975 830.59
10266140596 48101 106,400.00 106,250.74 03/01/97 02/01/27 359.00 04/01/97 80.0 11.750 1,074.01
10266140599 55304 20,200.00 20,200.00 03/10/97 02/10/12 179.38 03/10/97 89.6 11.750 239.19
10266140746 80219 31,343.00 31,343.00 04/01/97 03/01/12 180.00 04/01/97 88.1 11.350 363.16
10266140747 84065 43,100.00 43,100.00 04/01/97 03/01/12 180.00 04/01/97 89.9 12.750 538.25
10266140774 90047 22,500.00 22,500.00 03/06/97 02/06/12 179.24 03/06/97 88.6 12.600 278.79
10266140811 44110 68,700.00 68,700.00 02/21/97 01/21/27 358.72 02/21/97 84.9 12.100 711.95
10266140965 60609 15,000.00 15,000.00 03/12/97 02/12/17 239.44 03/12/97 28.8 10.350 148.25
10266141034 98337 16,000.00 16,000.00 03/11/97 02/11/12 179.41 03/11/97 82.8 13.850 211.47
10266141041 80127 36,000.00 36,000.00 04/01/97 03/01/12 180.00 04/01/97 74.9 11.500 356.50
10266141081 46402 30,000.00 30,000.00 03/20/97 02/20/17 239.70 03/20/97 58.8 14.000 373.06
10266141183 60515 112,000.00 112,000.00 03/21/97 02/21/17 239.74 03/21/97 80.0 10.600 1,125.72
10266141275 85028 35,233.00 35,233.00 04/01/97 03/01/12 180.00 04/01/97 83.8 11.250 406.01
10266141361 84106 20,000.00 20,000.00 04/01/97 03/01/12 180.00 04/01/97 83.1 11.850 203.42
10266141367 80228 26,000.00 26,000.00 04/01/97 03/01/12 180.00 04/01/97 84.3 12.750 324.70
10266141378 84401 78,500.00 78,500.00 04/01/97 03/01/12 180.00 04/01/97 88.6 11.750 792.39
10266141452 60457 39,900.00 39,900.00 03/05/97 02/05/12 179.21 03/05/97 74.9 12.200 416.57
10266141607 97381 58,000.00 58,000.00 04/01/97 03/01/12 180.00 04/01/97 89.8 11.350 672.03
10266141647 43201 37,100.00 37,100.00 03/14/97 02/14/27 359.51 03/14/97 70.0 9.850 321.47
10266141656 44203 76,500.00 76,500.00 03/14/97 02/14/27 359.51 03/14/97 90.0 11.500 757.57
10266141671 54935 47,700.00 47,700.00 03/21/97 02/21/12 179.74 03/21/97 90.0 10.850 537.67
10266141698 98110 77,000.00 77,000.00 04/01/97 03/01/12 180.00 04/01/97 81.5 13.750 897.14
10266141741 84117 25,100.00 25,100.00 04/01/97 03/01/12 180.00 04/01/97 84.9 13.950 296.41
10266141778 80909 21,600.00 21,600.00 04/01/97 03/01/17 240.00 04/01/97 79.9 13.000 253.06
10266141779 97321 26,500.00 26,500.00 04/01/97 03/01/17 240.00 04/01/97 89.7 11.750 287.18
10266141780 84020 42,000.00 42,000.00 04/01/97 03/01/12 180.00 04/01/97 78.6 15.350 542.84
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 15
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
ML687 10266141803 ROMNEY JOHN L 815 SOUTH 898 EAST ALPINE UT
ML687 10266141837 ELIBASICH ALICE E 36 EAST 157TH STREET CALUMET CITY IL
ML687 10266141851 PIPER JAMES A 5417 W. WINDING CREEK DRIVE MCHENRY IL
ML687 10266141909 GREEN JOHN M 9266 BAUER COURT LITTLETON CO
ML687 10266141951 GRAY JAMES P 4418 COUNTRY CLUB DRIVE NE TACOMA WA
ML687 10266141952 COTTONE SALVATORE 1440 85TH STREET BROOKLYN NY
ML687 10266141976 FORD LENA 8002 SOUTH HARPER AVENUE CHICAGO IL
ML687 10266142042 PETERS LEE H 1290 CHAMBERS DRIVE BOULDER CO
ML687 10266142046 STUEHMEYER TIMOTHY E 2385 CALISTOGA DRIVE COLORADO SPRINGS CO
ML687 10266142086 NEWSOM BONNIE L 3404 HAWTHORNE FRANKLIN PARK IL
ML687 10266142159 TENBROECK DOUGLAS M 1615 BURLINGTON LISLE IL
ML687 10266142200 CARTER SR ROBERT ANDERSON 6914 SW FLORENCE LANE PORTLAND OR
ML687 10266142221 WATKINS RICK W 4900 SOUTH PERRY PARK ROAD SEDALIA CO
ML687 10266142270 RONAYNE BRIAN 2119 GERANIUM AVENUE EAST ST. PAUL MN
ML687 10266142279 MARTINEZ RAMON F 12135 WEST BOWLES AVENUE LITTLETON CO
ML687 10266142286 MEDALIA SUSAN C 5305 DOON WAY ANACORTES WA
ML687 10266142314 BAYLOR MARIANNE 2674 DELIVERANCE DRIVE COLORADO SPRINGS CO
ML687 10266142338 ANGELINI RICHARD M 137 EAST SHERMAN COURT BARTLETT IL
ML687 10266142339 TATE BEULAH 1402 DANNER AVENUE DAYTON OH
ML687 10266142382 ANDERSEN RYAN C 4534 WEST 3285 SOUTH WEST VALLEY CITY UT
ML687 10266142427 PETRILLO ANTHONY R 132 S. VAIL AVE ARLINGTON HEIGHTS IL
ML687 10266142459 WEHRKAMP THOMAS E 537 SINTON AVENUE COLORADO SPRINGS CO
ML687 10266142467 TRACY DONALD RICHARD 519 FIDALGO STREET SEDRO WOOLLEY WA
ML687 10266142512 STAUFFER DAPHNE M 2217 BEAUMONT COURT AURORA IL
ML687 10266142595 CHAFFIN MARK WYATT 34187 CIMARRON TRAIL ELIZABETH CO
ML687 10266142617 CHIODRAS RONALD S 824 N. PRESIDENT STREET WHEATON IL
ML687 10266142686 BURKE THOMAS JAMES 454 S. ELIZABETH LOMBARD IL
ML687 10266142689 FIELDS BETTY 2469 E. 74TH STREET CHICAGO IL
ML687 10266142845 MUSSO JOHN 215 DITTMER AVENUE PUEBLO CO
ML687 10266142881 ROSS JUDITH ANN 7649 CHILLICOTHE ROAD MENTOR OH
ML687 10266142890 DALUGA CHER L 30350 N. CENTER LIBERTYVILLE IL
ML687 10266142962 BOYD JAYNI D 3818 EAST SOUTH FORK DRIVE PHOENIX AZ
ML687 10266142981 SULLIVAN GAIL P 6629 NORTH OLMSTED AVE. CHICAGO IL
ML687 10266143035 WISMAR THOMAS L 725 BLUEBIRD DRIVE BAILEY CO
ML687 10266143151 VANN PATRICK R 789 15TH STREET BOULDER CO
ML687 10266143181 STAFFORD JAMES C 319 CORNELIA AVENUE N.E. CANTON OH
ML687 10266143182 BREEDLOVE DORLIN R 1808 SHULER AVENUE HAMILTON OH
ML687 10266143262 MILLER KATHERINE S 240 SOUTH 370 EAST SMITHFIELD UT
------------------------------------------------
98 Sale Total
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10266141803 84004 29,680.00 29,680.00 04/01/97 03/01/12 180.00 04/01/97 83.5 11.500 293.92
10266141837 60409 64,400.00 64,400.00 03/17/97 02/17/12 179.61 03/17/97 70.0 10.600 715.87
10266141851 60050 31,000.00 31,000.00 03/12/97 02/12/12 179.44 03/12/97 84.7 12.750 387.14
10266141909 80124 38,271.00 38,271.00 04/01/97 03/01/12 180.00 04/01/97 84.4 12.750 477.94
10266141951 98422 57,000.00 57,000.00 04/01/97 03/01/12 180.00 04/01/97 89.9 10.850 536.37
10266141952 11228 28,300.00 28,300.00 03/24/97 02/24/07 119.84 03/24/97 83.8 11.700 401.13
10266141976 60619 40,000.00 40,000.00 03/24/97 02/24/17 239.84 03/24/97 54.0 12.000 440.43
10266142042 80303 18,900.00 18,900.00 04/01/97 03/01/12 180.00 04/01/97 85.0 12.450 200.98
10266142046 80915 24,000.00 24,000.00 03/12/97 02/12/17 239.44 03/12/97 78.9 12.000 264.26
10266142086 60131 17,400.00 17,400.00 03/17/97 02/17/12 179.61 03/17/97 89.9 11.750 206.04
10266142159 60532 25,800.00 25,800.00 03/13/97 02/13/12 179.47 03/13/97 74.9 11.100 294.86
10266142200 97223 30,478.00 30,478.00 04/01/97 03/01/12 180.00 04/01/97 89.9 11.750 307.65
10266142221 80135 300,000.00 300,000.00 04/01/97 03/01/12 180.00 04/01/97 74.3 11.250 2,913.78
10266142270 55119 18,500.00 18,500.00 03/26/97 02/26/12 179.90 03/26/97 84.9 12.350 226.21
10266142279 80127 68,000.00 68,000.00 04/01/97 03/01/17 240.00 04/01/97 79.8 13.500 821.01
10266142286 98221 52,500.00 52,500.00 04/01/97 03/01/17 240.00 04/01/97 84.9 12.750 605.75
10266142314 80918 25,900.00 25,900.00 04/01/97 03/01/12 180.00 04/01/97 89.9 11.350 300.10
10266142338 60103 21,000.00 20,847.80 03/19/97 02/19/12 179.67 04/19/97 31.9 11.250 203.96
10266142339 45408 38,700.00 38,700.00 03/18/97 02/18/27 359.64 03/18/97 90.0 9.850 335.34
10266142382 84120 55,000.00 55,000.00 04/01/97 03/01/12 180.00 04/01/97 79.3 13.100 612.71
10266142427 60005 50,000.00 50,000.00 03/20/97 02/20/12 179.70 03/20/97 80.5 10.200 446.19
10266142459 80906 38,200.00 38,200.00 04/01/97 03/01/17 240.00 04/01/97 59.7 11.500 407.38
10266142467 98284 20,000.00 20,000.00 04/01/97 03/01/12 180.00 04/01/97 80.9 12.750 249.77
10266142512 60504 16,200.00 16,200.00 03/25/97 02/25/17 239.87 03/25/97 84.9 12.750 186.92
10266142595 80107 29,000.00 29,000.00 04/01/97 03/01/17 240.00 04/01/97 77.5 12.000 319.31
10266142617 60187 29,500.00 29,500.00 03/25/97 02/25/17 239.87 03/25/97 79.9 14.000 366.84
10266142686 60148 38,900.00 38,900.00 03/26/97 02/26/17 239.90 03/26/97 79.9 14.000 483.73
10266142689 60649 45,000.00 45,000.00 03/17/97 02/17/12 179.61 03/17/97 75.0 9.600 472.62
10266142845 81004 63,900.00 63,900.00 04/01/97 03/01/12 180.00 04/01/97 90.0 11.350 625.49
10266142881 44060 90,000.00 90,000.00 03/24/97 02/24/17 239.84 03/24/97 70.0 12.250 1,006.71
10266142890 60048 67,000.00 67,000.00 03/24/97 02/24/17 239.84 03/24/97 50.3 11.250 703.00
10266142962 85044 14,600.00 14,600.00 04/01/97 03/01/12 180.00 04/01/97 90.0 12.750 182.33
10266142981 60631 18,100.00 18,100.00 03/26/97 02/26/12 179.90 03/26/97 84.9 10.350 198.40
10266143035 80421 65,000.00 65,000.00 04/01/97 03/01/12 180.00 04/01/97 68.3 10.100 575.23
10266143151 80302 50,000.00 50,000.00 04/01/97 03/01/12 180.00 04/01/97 79.9 13.500 572.71
10266143181 44704 15,000.00 15,000.00 03/24/97 02/24/12 179.84 03/24/97 33.3 11.750 177.62
10266143182 45011 30,500.00 30,500.00 03/14/97 02/14/17 239.51 03/14/97 64.8 13.700 372.65
10266143262 84335 27,182.00 27,182.00 03/10/97 02/10/12 179.38 03/10/97 87.9 12.750 339.46
---------------------------------- ------- ----------------------------
4,118,953.00 4,116,252.10 217.17 79.2 11.953 44,888.69
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 16
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MLC688 10268002991 PEYTON LOUIS E 210 OLD LANDING COURT FREDERICKSBURG VA
MLC688 10268004172 KELLY KEVIN 156 LUCILLE AVE STATEN ISLAND NY
MLC688 10268004283 LEAPHART JERRY V 48 NOD RD RIDGEFIELD CT
MLC688 10268004342 REA LOUIS F 3223 28TH AVE W SEATTLE WA
MLC688 10268004967 YE GUANG BAO 172 BOX MEUSEL ROAD PINE PLAINS NY
MLC688 10268005029 CARMACK ROSS D 3154 57TH AVENUE CIR E BRADENTON FL
MLC688 10268005572 CARBONE ADOLPH V 34 CRUISER CT TOMS RIVER NJ
MLC688 10268005721 VONGNARATH XAIP 5813 HARRISON AVE RIVERDALE MD
MLC688 10268005842 HICKS MICHAEL S 1507 HERITAGE DRIVE VALRICO FL
MLC688 10268006194 JENNINGS THERESA 10 DURELL DR JACKSON NJ
MLC688 10268006457 KIRK PAMELA S 231 RIDGE MANOR DR LAKE WALES FL
MLC688 10268006523 FAGAN WILLIAM A 2640 ROSS RD LITHONIA GA
MLC688 10268006862 JOHN GALTON Y ST 1377 KENSINGTON AVE BUFFALO NY
MLC688 10268006994 MEJIA BENJAMIN 12 HILLIARD WAY SEWELL NJ
MLC688 10268007104 ABLE HASKLE III RT 2 BOX 237B RIDGEWAY SC
MLC688 10268007261 MAHMOUD AHMED G 999 FOREST AVENUE APT 4C STATEN ISLAND NY
MLC688 10268007304 PHILLIPS EMILO L 1092 BUSHWICK AVE BROOKLYN NY
MLC688 10268007447 GROVE CHARLES 27 S SECOND STREET LEBANON PA
MLC688 10268007521 WILLIAMS MAVIS A 806 YEADON AVENUE YEADON PA
MLC688 10268007713 FOLEY KEVIN 19 WELLFLEET DRIVE NORFOLK MA
MLC688 10268007808 YAMIN JAMES A 2 MARIA DR LOUDONVILLE NY
MLC688 10268007836 THOMPSON EVA H 1854 HARRISON AVE BRONX NY
MLC688 10268007837 GORDON MICHAEL B 3 PYBURN ROAD LYNNFIELD MA
MLC688 10268007937 MUNTER RICKY 24 ROCKLAND DR JERICHO NY
MLC688 10268007969 MUHR DANIEL C 5918 ASH CT SLATINGTON PA
MLC688 10268008068 MITICH ANNA 5075 ROSEVIEW AVE HAMBURG NY
MLC688 10268008078 BURUN SHELLEY 461 OLD SEVENTY SIX ROAD BROOKTONDALE NY
MLC688 10268008153 GILLILAND CLIFFORD RR 1 BOX 125 TIDIOUTE PA
MLC688 10268008486 FRANCIS ALFRED W JR 121 DUFFERIN DR NEWARK DE
MLC688 10268008525 OMALLEY RICHARD 300 JOHNSON AVE RONKONKOMA NY
MLC688 10268008721 LENTZ DELBERT C 108 WALKERS MILLS ROAD GERMANTOWN NY
MLC688 10268008982 SCHLOTTER FRANK 6885 COPPERFIELD DR NEW PORT RICHEY FL
MLC688 10268009020 LOUTHER HARRY LEE 15 LINDBERGH ST HEMPSTEAD NY
MLC688 10268009053 HEPBURN WILLIAM 110 ELLISON STREET BENNETTSVILLE SC
MLC688 10268009063 THOMAS ROBERT 609 BEACH AVE BRONX NY
MLC688 10268009425 COKER, P.C. III 71 RUTLEDGE AVENUE CHARLESTON SC
MLC688 10268009459 CUNNANE JOHN M 937 W CEDAR ST ALLENTOWN PA
MLC688 10268009553 REILLY JOHN L 8 WENZEL LANE STONY POINT NY
MLC688 10268009554 JONES ANGELA BANKS 142 EAST LINCOLN AVENUNE ROOSEVELT NY
MLC688 10268009624 CHANCY GEORGE 624 SCHNEIDER CT WESTBURY NY
MLC688 10268009682 MCKENZIE JILL A 1702 NORTON RD HYATTSVILLE MD
MLC688 10268009694 DOUGHERTY RICHARD 129 MAIN AVE LAKE GROVE NY
MLC688 10268009728 ROUTIE RUDOLPH 130-36 120TH STREET SOUTH OZONE PARK NY
MLC688 10268009731 GRAVES CLEVELAND 406 G POCONO COUNTRY PLACE TOBYHANNA PA
MLC688 10268009778 MARKEY PATRICK J 74 STINGRAY STREET DESTIN FL
MLC688 10268009820 TJADA GARVIN 12 CORRAL DR AMITYVILLE NY
MLC688 10268009903 ZELLMER JOSEPH SR 1532 INGLESIDE AVE BALTIMORE MD
MLC688 10268009923 RUEBERGER PETER N 2017 MARY ST HERMITAGE PA
MLC688 10268009946 WEDER RICHARD P 8 CIRCLE DR CLINTON CT
MLC688 10268009952 CRAWFORD SCOTT 136 SPRUCE CIR N BARNEGAT NJ
MLC688 10268010027 CONGUTA JOSE 4825 GROVE POINT DR TAMPA FL
MLC688 10268010318 BROADUS BATTISTE JR 3501 STONE ROAD, SW ATLANTA GA
MLC688 10268010372 ZIEHL JOSEPH P 1 WEBB CIR MONROE CT
MLC688 10268010399 ERVIN ROBIN A 315 MADISON AVE BRENTWOOD NY
MLC688 10268010425 RAVENELL FLOYD D 10274 CARA STREET SPRING HILL FL
MLC688 10268010455 REILLY JOHN J 103 QUAIL RUN KENNETT SQUARE PA
MLC688 10268010501 WHITSON PAUL B. 151 FOUNTAIN WAY SWANNANOA NC
MLC688 10268010624 HARDASWICK DANIEL J 2 MARSHALL LN ANSONIA CT
MLC688 10268010728 MAXWELL IRMA 516 VIRGINIA LANE CLEARWATER FL
MLC688 10268010761 ESTREICHER RICHARD 100 SAMPSON AVE STATEN ISLAND NY
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10268002991 22405 323,900.00 323,900.00 12/21/96 11/21/11 176.71 02/21/97 80.9 12.450 3,444.29
10268004172 10309 25,400.00 24,212.02 01/03/97 12/03/11 177.11 07/03/97 89.9 11.550 252.50
10268004283 06877 93,000.00 93,000.00 12/08/96 11/08/11 176.28 03/08/97 82.4 12.750 1,010.62
10268004342 98199 126,000.00 126,000.00 03/10/97 02/10/27 359.38 03/10/97 49.4 9.550 1,064.08
10268004967 12567 93,600.00 93,348.97 02/23/97 01/23/12 178.78 03/23/97 78.0 13.000 1,184.27
10268005029 34203 24,500.00 24,186.56 12/18/96 11/18/11 176.61 03/18/97 80.6 13.750 322.17
10268005572 08753 135,200.00 135,200.00 03/01/97 02/01/12 179.00 03/01/97 80.0 13.000 1,495.58
10268005721 20737 15,170.00 15,170.00 02/13/97 01/13/12 178.45 03/13/97 87.0 12.750 189.45
10268005842 33594 19,950.00 19,950.00 03/21/97 02/21/17 239.74 03/21/97 79.9 14.000 248.08
10268006194 08527 37,250.00 37,133.22 01/24/97 12/24/11 177.80 03/24/97 85.0 12.900 468.85
10268006457 33853 54,000.00 54,000.00 03/01/97 02/01/27 359.00 03/01/97 90.0 11.250 524.48
10268006523 30058 99,200.00 99,165.70 01/03/97 12/03/11 177.11 03/03/97 80.0 14.250 1,195.05
10268006862 14215 18,138.00 18,070.04 01/18/97 12/18/11 177.60 03/18/97 90.0 12.750 226.51
10268006994 08080 29,000.00 29,000.00 02/24/97 01/24/07 118.82 02/24/97 63.9 11.100 401.12
10268007104 29130 66,500.00 66,500.00 02/13/97 01/13/12 178.45 02/13/97 70.0 11.000 755.84
10268007261 10310 39,450.00 39,450.00 02/09/97 01/09/12 178.32 03/09/97 75.0 10.600 438.53
10268007304 11221 157,500.00 157,500.00 02/16/97 01/16/12 178.55 02/16/97 90.0 11.850 1,601.90
10268007447 17042 31,200.00 31,200.00 03/01/97 02/01/12 179.00 03/01/97 60.0 12.000 320.93
10268007521 19050 71,100.00 71,100.00 03/04/97 02/04/12 179.18 03/04/97 90.0 11.500 704.10
10268007713 02096 77,686.00 77,686.00 03/10/97 02/10/17 239.38 03/10/97 89.8 12.450 879.89
10268007808 12211 26,800.00 26,800.00 03/11/97 02/11/12 179.41 03/11/97 79.9 10.950 303.77
10268007836 10453 140,000.00 140,000.00 03/11/97 02/11/12 179.41 03/11/97 80.0 13.850 1,642.21
10268007837 01940 30,200.00 30,200.00 02/01/97 01/01/12 178.00 03/01/97 87.4 11.750 357.61
10268007937 11753 50,000.00 50,000.00 03/20/97 02/20/12 179.70 03/20/97 89.3 11.750 504.70
10268007969 18080 80,000.00 80,000.00 02/21/97 01/21/12 178.72 03/21/97 65.2 12.500 853.81
10268008068 14219 70,000.00 70,000.00 03/07/97 02/07/27 359.28 03/07/97 78.6 12.200 730.82
10268008078 14817 22,500.00 22,500.00 03/18/97 02/18/12 179.64 03/18/97 64.2 12.000 231.44
10268008153 16351 43,875.00 43,875.00 02/16/97 01/16/17 238.55 02/16/97 75.0 11.750 475.48
10268008486 19702 40,000.00 40,000.00 02/21/97 01/21/12 178.72 02/21/97 77.7 12.100 414.53
10268008525 11779 50,000.00 50,000.00 03/10/97 02/10/12 179.38 03/10/97 38.7 9.700 528.16
10268008721 12526 30,000.00 29,970.28 01/26/97 12/26/16 237.86 02/26/97 50.0 12.150 333.47
10268008982 34655 27,000.00 27,000.00 03/03/97 02/03/12 179.15 03/03/97 65.9 11.600 317.13
10268009020 11550 61,000.00 61,000.00 03/18/97 02/18/12 179.64 03/18/97 43.5 10.150 661.12
10268009053 29512 28,794.00 28,794.00 03/12/97 02/12/17 239.44 03/12/97 81.9 12.750 332.23
10268009063 10473 120,800.00 120,800.00 02/27/97 01/27/12 178.92 02/27/97 80.0 14.850 1,512.97
10268009425 29401 200,000.00 200,000.00 03/10/97 02/10/17 239.38 03/10/97 84.4 12.750 2,307.62
10268009459 18102 22,950.00 22,902.01 03/01/97 02/01/27 359.00 04/01/97 85.0 12.250 240.49
10268009553 10980 29,250.00 29,250.00 03/01/97 02/01/12 179.00 03/01/97 90.0 11.550 342.63
10268009554 11575 75,600.00 75,600.00 03/03/97 02/03/12 179.15 03/03/97 90.0 11.050 722.81
10268009624 11590 39,779.00 39,779.00 03/01/97 02/01/17 239.00 03/01/97 89.9 13.350 475.99
10268009682 20783 46,500.00 46,500.00 03/03/97 02/03/12 179.15 03/03/97 89.2 11.250 451.64
10268009694 11755 69,000.00 68,903.85 02/23/97 01/23/12 178.78 03/23/97 89.9 11.250 670.17
10268009728 11420 25,000.00 25,000.00 03/11/97 02/11/17 239.41 03/11/97 89.9 13.000 292.89
10268009731 18466 127,500.00 127,500.00 02/13/97 01/13/12 178.45 02/13/97 85.0 13.600 1,470.44
10268009778 32541 44,250.00 44,250.00 03/19/97 02/19/12 179.67 03/19/97 85.0 12.750 480.86
10268009820 11701 76,500.00 76,500.00 03/06/97 02/06/12 179.24 03/06/97 90.0 11.050 731.42
10268009903 21207 121,111.00 121,111.00 02/14/97 01/14/17 238.49 03/14/97 85.8 10.750 1,229.55
10268009923 16148 56,000.00 56,000.00 03/10/97 02/10/17 239.38 03/10/97 80.0 10.750 568.53
10268009946 06413 41,260.00 41,260.00 03/05/97 02/05/17 239.21 03/05/97 89.9 11.990 454.02
10268009952 08005 18,924.00 18,924.00 03/11/97 02/11/12 179.41 03/11/97 89.8 12.350 231.40
10268010027 33624 11,000.00 10,926.72 02/23/97 01/23/12 178.78 03/23/97 80.3 12.750 137.37
10268010318 30331 56,000.00 56,000.00 03/10/97 02/10/27 359.38 03/10/97 80.0 13.750 652.46
10268010372 06468 51,000.00 51,000.00 03/18/97 02/18/17 239.64 03/18/97 84.8 13.350 610.26
10268010399 11717 54,600.00 54,600.00 02/22/97 01/22/12 178.75 02/22/97 70.0 10.750 509.68
10268010425 34608 29,600.00 29,600.00 03/18/97 02/18/12 179.64 03/18/97 89.9 11.550 346.73
10268010455 19348 62,300.00 62,300.00 03/05/97 02/05/12 179.21 03/05/97 84.9 12.750 677.01
10268010501 28778 75,000.00 75,000.00 03/05/97 02/05/17 239.21 03/05/97 83.3 9.500 699.10
10268010624 06401 85,000.00 85,000.00 03/18/97 02/18/17 239.64 03/18/97 62.9 10.750 862.94
10268010728 34624 60,800.00 60,800.00 03/18/97 02/18/27 359.64 03/18/97 80.0 10.450 553.89
10268010761 10308 24,000.00 24,000.00 03/05/97 02/05/12 179.21 03/05/97 89.8 11.450 279.60
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 17
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MLC688 10268010832 PRASHAD HARRINARAIN 97-28 ALLENDALE STREET JAMAICA NY
MLC688 10268010841 CUMMINGS MARY 56 &58 EAST AVE FREEPORT NY
MLC688 10268010860 CROOK SEAN P 23565 VIA CALZADA MISSION VIEJO CA
MLC688 10268011155 MACDONALD MICHAEL 15 VICTORIA LN NAUGATUCK CT
MLC688 10268011222 STEFANO JAMES DI 50 TIERNEY ST NORWALK CT
MLC688 10268011249 SALA KATHLEEN V 3111 SOUNDING DRIVE EDGEWOOD MD
MLC688 10268011286 MENDOZA OSCAR 10014 NORTH 26TH STREET TAMPA FL
MLC688 10268011427 FIVECOAT JAMES MERLE 1720 SOUTHWEST 5TH STREET FORT LAUDERDALE FL
MLC688 10268011509 ADAMS JAMES L 77 W CANAL ST DOVER PA
MLC688 10268011510 MLOTKOWSKI EDDIE M 7448 17TH LANE NORTHEAST ST PETERSBURG FL
MLC688 10268011602 COCCHI ROBERT JR 8 EASTFIELD DR SUSSEX NJ
MLC688 10268011747 AVERY WILLIAM K 1217 GOLF COURSE DR MITCHELLVILLE MD
MLC688 10268011973 MOSHER JOSEPH 903 FAIRVIEW STREET PECKVILLE PA
MLC688 10268012097 CAMPBELL KEITH D 10661 CASEY DRIVE NEW PORT RICHEY FL
MLC688 10268012181 COX GEORGE W 1427 UNION AVENUE BALTIMORE MD
MLC688 10268013168 WINKOWSKI RICHARD C 2456 WOODLAND RD LAKEHURST NJ
------------------------------------------------
76 Sale Total
663 Total with Merrill Lynch
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10268010832 11435 38,500.00 38,259.73 03/10/97 02/10/17 239.38 04/10/97 89.9 11.450 409.25
10268010841 11520 31,100.00 31,100.00 03/14/97 02/14/12 179.51 03/14/97 89.9 11.550 364.30
10268010860 92691 24,200.00 24,200.00 03/20/97 02/20/17 239.70 03/20/97 89.9 11.550 258.91
10268011155 06770 24,600.00 24,600.00 03/20/97 02/20/17 239.70 03/20/97 84.9 11.750 266.59
10268011222 06851 26,900.00 26,900.00 03/11/97 02/11/12 179.41 03/11/97 89.4 11.990 322.67
10268011249 21040 92,300.00 92,300.00 03/04/97 02/04/12 179.18 03/04/97 65.0 11.250 896.47
10268011286 33612 38,600.00 38,600.00 03/10/97 02/10/12 179.38 03/10/97 87.0 10.950 437.52
10268011427 33312 12,000.00 11,579.91 03/07/97 02/07/07 119.28 06/07/97 76.9 11.000 165.30
10268011509 17315 40,100.00 40,100.00 03/11/97 02/11/12 179.41 03/11/97 70.9 11.000 455.78
10268011510 33702 84,000.00 84,000.00 03/07/97 02/07/17 239.28 03/07/97 83.7 9.600 788.48
10268011602 07461 110,348.00 110,348.00 03/18/97 02/18/12 179.64 03/18/97 85.0 11.750 1,113.86
10268011747 20721 199,700.00 199,700.00 03/12/97 02/12/17 239.44 03/12/97 84.9 12.000 2,198.87
10268011973 18452 41,600.00 41,600.00 03/14/97 02/14/12 179.51 03/14/97 85.0 12.500 512.73
10268012097 34654 28,000.00 28,000.00 03/18/97 02/18/12 179.64 03/18/97 79.8 10.350 306.91
10268012181 21211 49,000.00 49,000.00 03/10/97 02/10/17 239.38 03/10/97 70.0 13.850 603.99
10268013168 08733 90,000.00 90,000.00 03/01/97 02/01/27 359.00 03/01/97 90.0 11.500 891.26
----------------------------------- ------- ----------------------------
4,792,585.00 4,789,706.00 212.83 80.1 11.999 51,920.08
34,603,363.00 34,571,404.00 212.65 79.1 11.719 370,565.30
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 18
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
SBCL13 10266132125 CAPIZZI SALVATORE P 501-507 THIRD STREET NIAGARA FALLS NY
SBCL13 10266135549 LORENC STANLEY 231 NASSAU AVENUE BROOKLYN NY
SBCL13 10266136278 DEAGUSTINI JOSE 195 SOUTH REGENT STREET PORT CHESTER NY
SBCL13 10266137091 RAGAINI MICHAEL D 204-206 DERBY AVENUE DERBY CT
SBCL13 10266137733 WILLIAMS WILLIAM 148-52 FRANKLIN STREET BELLEVILLE NJ
SBCL13 10266137843 MOST STUART L 687 GENESEE STREET ROCHESTER NY
SBCL13 10266137872 GHOLSTON THOMAS J 5504 W VAN BUREN CHICAGO IL
SBCL13 10266137884 GONZALEZ SANTOS 1700 N KIMBALL CHICAGO IL
SBCL13 10266139055 CARBERRY DENNIS J III 4102 CLEVELAND AVE ASHTABULA OH
SBCL13 10266140379 LANFRANCO ROSA 912 GATES AVENUE BROOKLYN NY
------------------------------------------------
10 Sale Total
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10266132125 14301 120,000.00 120,000.00 03/01/97 02/01/12 179.00 03/01/97 63.1 12.900 1,344.37
10266135549 11222 100,000.00 99,782.12 03/01/97 02/01/12 179.00 04/01/97 45.4 11.100 1,142.88
10266136278 10573 125,000.00 125,000.00 03/01/97 02/01/12 179.00 03/01/97 65.7 11.600 1,279.74
10266137091 06418 112,450.00 112,396.23 02/01/97 01/01/12 178.00 03/01/97 65.0 12.600 1,234.50
10266137733 07109 110,000.00 109,959.94 02/01/97 01/01/12 178.00 03/01/97 44.0 14.100 1,332.56
10266137843 14611 82,500.00 82,500.00 03/01/97 02/01/12 179.00 03/01/97 64.9 11.100 942.88
10266137872 60644 123,500.00 122,720.42 02/01/97 01/01/12 178.00 03/01/97 54.8 15.000 1,728.49
10266137884 60647 56,400.00 56,367.78 02/01/97 01/01/12 178.00 03/01/97 40.0 11.600 577.42
10266139055 44004 72,200.00 72,200.00 03/01/97 02/01/12 179.00 03/01/97 62.7 12.800 803.44
10266140379 11208 150,500.00 150,500.00 03/01/97 02/01/12 179.00 03/01/97 70.0 11.100 1,720.04
----------------------------------- ------- ----------------------------
1,052,550.00 1,051,426.50 178.62 58.8 12.438 12,106.32
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Alliance Funding Company Sale Schedule Page 19
A division of Superior Bank FSB 1997-1 Class 1 - Initial Pool of Fixed Rate Mortgages - Settlement 3/20/97
Sale ID Account Name Address City State
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
SBCL14 10266136227 WILLIAMS ROBERT L 901 EAST 140TH STREET CLEVELAND OH
SBCL14 10266136230 WILLIAMS ROBERT L 903 EAST 140TH STREET CLEVELAND OH
SBCL14 10266138069 BULLARD WILLIAM 902-908 W 68TH ST CHICAGO IL
SBCL14 10266140492 SOUZA LAURA MARIE 8944 S COMMERCIAL CHICAGO IL
------------------------------------------------
4 Sale Total
14 Total with Superior Bank
816 Grand Total
<CAPTION>
Principal Cut-off Date First Original Current Scheduled
Zip Balance at Principal Payment Maturity Rem Date LTV Mortgage Payment
Account Code Origination Balance Date Date Term Due Ratio Rate Int & Prin
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10266136227 44110 55,000.00 54,675.73 12/01/96 11/01/11 176.00 03/01/97 64.7 12.300 670.74
10266136230 44110 55,000.00 54,675.73 12/01/96 11/01/11 176.00 03/01/97 53.3 12.300 670.74
10266138069 60621 68,700.00 68,241.81 02/01/97 01/01/12 178.00 03/01/97 54.9 15.000 961.52
10266140492 60617 77,600.00 77,600.00 02/01/97 01/01/12 178.00 04/01/97 47.0 16.000 1,054.50
----------------------------------- ------- ----------------------------
256,300.00 255,193.27 177.14 54.3 14.147 3,357.50
1,308,850.00 1,306,619.80 178.33 57.9 12.772 15,463.82
41,925,599.00 41,875,268.00 213.35 78.2 11.772 451,016.00
</TABLE>
<PAGE>
EXHIBIT H-2
MORTGAGE LOAN SCHEDULE FOR SUB-POOL 2
<PAGE>
Alliance Funding Company Page 1 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<S> <C> <C> <C> <C> <C> <C>
BS22D 10216120478 JORDAN SIGMUND 14 FRANKLIN TERRACE SOUTH ORANGE NJ 07079
BS22D 10216125218 VANSCHENKBRILL ROBERT W 163 AMBLER STREET WESTVILLE NJ 08093
BS22D 10216131608 HAUGSETH WILLIAM K 1817 N KEENE ROAD CLEARWATER FL 34615
----------- ----------
3 Sale Total
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10216120478 214,400.00 214,060.17 10/1/96 9/1/26 11.625 11.625 17.625 8.500
10216125218 48,750.00 48,607.44 10/1/96 9/1/26 9.625 9.625 15.625 6.000
10216131608 126,000.00 125,755.62 11/1/96 10/1/26 9.625 9.625 15.625 5.750
------------- ----------- ---------- --------- -------- ---------
389,150.00 388,423.23 10.727 10.727 16.727 7.297
</TABLE>
<PAGE>
Alliance Funding Company Page 2 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
BS27 10216121278 HACHEM MOHAMAD K 6939 APPOLINE DEARBORN MI 48126
BS27 10216128442 GIZA RONALD S JR 255 WEST MINSTER ROAD WILKES-BARRE PA 18702
BS27 10216130544 MCLAUGHLIN LUKE F III 312 PERKIOMEN AVENUE OAKS PA 19456
BS27 10216130641 WIMBROW NORMAN R JR 209 NORTH STREET FOWLERVILLE MI 48836
BS27 10216132822 CRATER DARRYL 20000 LAKEWOOD LYNWOOD IL 60411
BS27 10216133048 O'NEIL LEONARD A 303 HARRIS STREET KENT OH 44240
BS27 10216135176 DUKE LISA WHITEMAN 4924 HORSESHOE BEND COLORADO SPRINGS CO 80917
BS27 10216135476 HILLER DAVID K 7648 SOUTH 1430 WEST WEST JORDAN UT 84088
BS27 10216135787 SANDOLO CLAUDIO 31 F TANGLEWOOD DRIVE ALBRIGHTSVILLE PA 18210
BS27 10216135824 LERCH BARBARA S 4219 RIDGELAND LANE NORTHBROOK IL 60062
BS27 10216135881 JACKSON NELSON 2705 NORTH 6TH STREET HARRISBURG PA 17110
BS27 10216135946 MALLOTT BEVERLY A 2853 LINDALE MT. HOLLY ROAD AMELIA OH 45102
BS27 10216135970 KUNZ ARTHUR DANIEL 424 WEST 525 SOUTH VICTOR ID 83455
BS27 10216136196 PASSMORE MICHAEL A 3449 MOYER DR FRANKLIN OH 45005
BS27 10216136335 BEST BONNIE M 4070 STATE ROAD AKRON OH 44319
BS27 10216136337 MURRAY CHERYL V 2531 EAST 84TH CLEVELAND OH 44104
BS27 10216136424 KUECHLE COLLEEN A 5221 56TH AVENUE CRYSTAL MN 55429
BS27 10216136543 LOWERY JANE E 876 AFTON ROAD COLUMBUS OH 43221
BS27 10216137146 CANTU JOSE G 435 DESDEMONA AVENUE OTHELLO WA 99344
BS27 10216137956 CWIKLINSKI ROBERT W 104 PRINCESS WAY CENTRAL POINT OR 97502
BS27 10216138002 PALCAU VALERICA 332 DUNDEE RD. WHEELING IL 60090
BS27 10216138140 PINCKNEY JOSIAH 22318 103 AVENUE QUEENS VILLAGE NY 11429
BS27 10216138171 GREER SIDNEY A 9327 S. OGLESBY CHICAGO IL 60617
BS27 10216138217 ALLEN GEORGE W 1403 EAST WESTMINISTER AVENUE SALT LAKE CITY UT 84105
BS27 10216138328 FOSTER GLENN A 8620 E SAN ALFREDO DRIVE SCOTTSDALE AZ 85258
BS27 10216138386 THELEN LUCY M 11930 S. HARDING ALSIP IL 60658
BS27 10216138395 PERKINS DONALD 13830 ROBERTSON DEARBORN MI 48126
BS27 10216138416 ADAMS DAVID G 203 NORTH EMERSON STREET MT. PROSPECT IL 60056
BS27 10216138483 STEELE LARRY L 597 KNOBHILL DRIVE LAKE HAVASU CITY AZ 86403
BS27 10216138517 WATSON GEORGE S 18131 CORAL GABLES LATHRUP VILLAGE MI 48076
BS27 10216138530 HARPER II PHILIP E 22802 VERA STREET WARRENSVILLE HEIGHTS OH 44128
BS27 10216138535 WORMICK JR JAMES E 14631 SOUTH UNION HARVEY IL 60426
BS27 10216138573 BROVONT SHAWNA 1105 PRAIRIE AVENUE GOSHEN IN 46526
BS27 10216138609 GLUNT LINDA M 623 FOX HAVEN STREET HENDERSON NV 89015
BS27 10216138674 GRACIA NIDIA E 4916 N. WHIPPLE CHICAGO IL 60625
BS27 10216138681 RENFRO CORTEZ 11979 WINCANTON DRIVE CINCINNATI OH 45231
BS27 10216138689 SISLEY JENNIFER 2244 GALLS CREEK ROAD GOLD HILL OR 97525
BS27 10216138770 DIAZ RAMON L 5140 WEST ALTGELD STREET CHICAGO IL 60639
BS27 10216138773 HUNZIKER LYNN M 1486 1/2 SHERBURNE AVENUE ST PAUL MN 55102
BS27 10216138780 AL-YUNISI HASSAN 7614-16 KENDAL DEARBORN MI 48126
BS27 10216138783 CUMMINS MARK 720 OSBORNE DRY RIDGE KY 41035
BS27 10216138797 LAWLESS LLOYD T 1950 REGINA WAY GRANTS PASS OR 97527
BS27 10216138860 PRICE EDWARD A 13730 BORGMAN OAK PARK MI 48237
BS27 10216138934 MORRIS ANGELA V 3226 MALLARD DRIVE HOMEWOOD IL 60430
BS27 10216138936 MODJESKI CHRISTOPHER 1421 EAST FRANCIS ROAD NEW LENOX IL 60451
BS27 10216138954 REYNOLDS CONNIE E 3919 OAK GROVE ROAD NORTH BRANCH MI 48461
BS27 10216138956 HOUSSAIKY RIAD 4716-18 MEAD DEARBORN MI 48126
BS27 10216138958 KARIM AHMAD 5927 YORKSHIRE DETROIT MI 48224
BS27 10216138962 ALFATLAWI AMJAD 8833 THAYER DEARBORN MI 48126
BS27 10216138997 MEDINA HENRY R 235 WEST 700 NORTH CLEARFIELD UT 84015
BS27 10216139015 MARYN FRANK M 9850 SHADOW TRAIL FLAGSTAFF AZ 86004
BS27 10216139061 SCANAGATTA CLARA A 2144 272ND WAY SOUTHEAST ISSAQUAH WA 98029
BS27 10216139106 STEIN DEENA A 21 KELLEY DRIVE FLORENCE KY 41042
BS27 10216139114 KERPAN LOUIS J 2028 34TH STREET ZION IL 60099
BS27 10216139129 VIGNIERI ANTHONY R 18405 TRISTRAM WAY EDEN PRAIRIE MN 55346
BS27 10216139133 JACQUES RICHARD EDWARD 25402 VREELAND FLAT ROCK MI 48134
BS27 10216139166 SASSER III WALTER B 721 HEARTHSTONE DRIVE BASALT CO 81621
BS27 10216139216 ZEYEN KEITH B 0S473 MADISON STREET WINFIELD IL 60190
BS27 10216139217 RODRIGUEZ MARIA 2215 W. SHAKESPEARE AVENUE CHICAGO IL 60647
BS27 10216139229 SEIBERT MARVIN D 3546 LAWRENCE ROAD WATERFORD TOWNSHIP MI 48329
BS27 10216139235 PLACKE ROBERT G 1740 ASBURY HEBRON KY 41048
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10216121278 112,500.00 112,124.46 8/1/96 7/1/26 9.625 9.625 15.625 5.750
10216128442 63,750.00 63,567.21 10/1/96 9/1/26 9.875 9.875 15.875 6.000
10216130544 120,000.00 119,658.64 11/1/96 10/1/26 8.875 8.875 14.875 5.500
10216130641 56,000.00 55,949.17 2/1/97 1/1/27 9.625 9.625 15.625 6.000
10216132822 101,700.00 101,481.04 11/1/96 10/1/26 9.125 9.125 15.125 5.750
10216133048 56,800.00 56,745.00 12/1/96 11/1/26 11.500 11.500 17.500 7.500
10216135176 126,000.00 125,754.47 12/1/96 11/1/26 8.750 7.750 14.750 4.500
10216135476 150,450.00 150,394.87 2/1/97 1/1/27 10.875 10.875 16.875 7.500
10216135787 40,000.00 39,967.40 1/1/97 12/1/26 10.375 10.375 16.375 6.750
10216135824 391,000.00 391,000.00 3/1/97 2/1/27 9.625 8.625 15.625 4.750
10216135881 63,900.00 63,874.61 2/1/97 1/1/27 10.500 9.500 16.500 6.750
10216135946 88,000.00 87,925.88 2/1/97 1/1/27 10.250 9.250 16.250 5.750
10216135970 44,820.00 44,791.54 2/1/97 1/1/27 12.625 12.625 18.625 7.750
10216136196 91,800.00 91,800.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216136335 81,200.00 81,200.00 3/1/97 2/1/27 12.125 11.125 18.125 6.750
10216136337 24,500.00 24,486.62 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216136424 78,600.00 78,600.00 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10216136543 64,000.00 63,962.21 2/1/97 1/1/27 8.625 7.625 14.625 3.750
10216137146 94,500.00 94,397.97 1/1/97 12/1/26 11.000 10.000 17.000 6.750
10216137956 87,550.00 87,496.78 2/1/97 1/1/27 11.750 10.750 17.750 7.500
10216138002 95,200.00 95,155.58 2/1/97 1/1/27 9.750 9.750 15.750 6.000
10216138140 134,250.00 134,182.21 2/1/97 1/1/27 9.375 9.375 15.375 5.750
10216138171 119,000.00 118,955.44 2/1/97 1/1/27 10.875 9.875 16.875 6.250
10216138217 108,000.00 107,955.91 2/1/97 1/1/27 10.375 9.375 16.375 6.000
10216138328 118,400.00 118,400.00 3/1/97 2/1/27 10.375 10.375 16.375 7.000
10216138386 90,400.00 90,400.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216138395 45,000.00 44,912.50 2/1/97 1/1/27 11.000 10.000 17.000 6.000
10216138416 215,100.00 215,100.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216138483 123,250.00 123,212.72 2/1/97 1/1/27 11.750 10.750 17.750 7.500
10216138517 81,000.00 81,000.00 3/1/97 2/1/27 12.125 11.125 18.125 6.750
10216138530 45,000.00 44,983.95 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10216138535 68,800.00 68,800.00 3/1/97 2/1/27 12.500 11.500 18.500 7.500
10216138573 64,800.00 64,772.83 2/1/97 1/1/27 10.250 9.250 16.250 5.750
10216138609 104,000.00 103,950.18 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216138674 105,600.00 105,500.00 2/1/97 1/1/27 12.500 11.500 18.500 7.500
10216138681 84,100.00 84,100.00 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10216138689 161,500.00 161,451.15 2/1/97 1/1/27 11.750 10.750 17.750 7.500
10216138770 172,000.00 171,935.24 2/1/97 1/1/27 10.750 9.750 16.750 6.500
10216138773 81,000.00 80,964.17 2/1/97 1/1/27 10.000 9.000 16.000 6.750
10216138780 73,800.00 73,762.73 2/1/97 1/1/27 9.375 9.375 15.375 5.750
10216138783 84,800.00 84,716.50 2/1/97 1/1/27 8.625 7.625 14.625 3.750
10216138797 107,200.00 107,171.78 2/1/97 1/1/27 12.375 11.375 18.375 8.000
10216138860 77,400.00 77,359.50 2/1/97 1/1/27 11.000 10.000 17.000 6.750
10216138934 276,200.00 276,049.13 2/1/97 1/1/27 9.000 8.000 15.000 4.500
10216138936 175,100.00 174,999.30 2/1/97 1/1/27 12.000 11.000 18.000 7.750
10216138954 71,000.00 71,000.00 3/1/97 2/1/27 9.875 9.875 15.875 7.000
10216138956 95,200.00 95,087.18 2/1/97 1/1/27 8.625 7.625 14.625 3.750
10216138958 64,000.00 63,927.98 2/1/97 1/1/27 8.875 8.875 14.875 5.250
10216138962 92,700.00 92,653.19 2/1/97 1/1/27 9.375 9.375 15.375 5.750
10216138997 78,200.00 78,151.15 2/1/97 1/1/27 11.625 10.625 17.625 7.250
10216139015 187,500.00 187,419.24 2/1/97 1/1/27 10.125 10.125 16.125 6.750
10216139061 358,250.00 358,111.43 2/1/97 1/1/27 10.625 9.625 16.625 6.000
10216139106 114,300.00 114,300.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216139114 84,000.00 83,959.76 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216139129 202,300.00 202,104.18 1/1/97 12/1/26 11.500 10.500 17.500 7.750
10216139133 86,400.00 86,369.19 2/1/97 1/1/27 11.000 11.000 17.000 7.250
10216139166 386,400.00 386,171.87 2/1/97 1/1/27 8.625 8.625 14.625 5.250
10216139216 180,000.00 180,000.00 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216139217 156,000.00 155,930.99 2/1/97 1/1/27 10.000 9.000 16.000 5.850
10216139229 84,000.00 84,000.00 3/1/97 2/1/27 9.000 8.000 15.000 5.500
10216139235 105,000.00 105,000.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
</TABLE>
<PAGE>
Alliance Funding Company Page 3 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
BS27 10216139252 GOULDY CATHERINE V 1486 S CAROL STREET CAMANO ISLAND WA 98292
BS27 10216139271 CHAPMAN JEFFREY J 4091 SOUTH 6865 WEST WEST VALLEY CITY UT 84128
BS27 10216139287 DERR ROBIN 3055 W COUNTRY CLUB TERRACE PHOENIX AZ 85027
BS27 10216139398 FOSTER ARZEL L 24479 SOUTH CROMWELL FRANKLIN MI 48025
BS27 10216139407 GRIFFIN LARRY 909 S SACRAMENTO BLVD CHICAGO IL 60612
BS27 10216139409 ALEXANDER WILLYE J 6928 SOUTH CARPENTER CHICAGO IL 60621
BS27 10216139504 YOUNES SAHAR 6314 KENDAL DEARBORN MI 48126
BS27 10216139549 THOMPSON JON ALLAN 9821 NORTH DAVIES ROAD LAKE STEVENS WA 98258
BS27 10216139565 ZIMKAS BRIAN 4604 HACKAMORE LANE COLORADO SPRINGS CO 80918
BS27 10216139574 MAY NANCY 487 SOUTH MAIN NEPHI UT 84648
BS27 10216139597 CORNE RICHARD J 10345 WESTLAKE TAYLOR MI 48180
BS27 10216139637 MARTIN KIM H 2210 NORTH PIMA ROAD SCOTTSDALE AZ 85257
BS27 10216139664 SEPTOFF LORIN 12626 DEAD INDIAN MEMORIAL RD ASHLAND OR 97520
BS27 10216139666 HELLE PETER R 7488 EAST RUSTLING PASS SCOTTSDALE AZ 85255
BS27 10216139691 LIEBRICH DAVID J 10624 RAINIER AVENUE SOUTH SEATTLE WA 98178
BS27 10216139809 MAZUR ROBERT A 6N138 SYLVIA LANE ST. CHARLES IL 60174
BS27 10216139845 MYLES ALICE 2313 N. NORTHERN WAUKEGAN IL 60085
BS27 10216139856 KURTZ RICHARD J 845 HARRISON OMRO WI 54963
BS27 10216139864 JOUNI MOHAMAD 7639 PAYNE DEARBORN MI 48126
BS27 10216139877 HILTZ MARK J 5744 FOURSON CINCINNATI OH 45233
BS27 10216139952 MOORE ELLEN 928 WEST 54TH PLACE CHICAGO IL 60609
BS27 10216139962 HAY JOSEPH C 4842 PRESTON ROAD HOWELL MI 48843
BS27 10216139970 WOODWORTH-SULLA LINDA C 2419 ROLANDALE WEST BLOOMFIELD TOWN MI 48324
BS27 10216139982 AMASIO PAULA F 8517 SOUTH 4770 WEST WEST JORDAN UT 84088
BS27 10216139994 TARR VIRGINIA 443 WEST 1360 NORTH AMERICAN FORK UT 84003
BS27 10216140149 TURNER CARL D 759 EAST 5500 SOUTH SOUTH OGDEN UT 84405
BS27 10216140161 HAUSERMAN JODEANE H 1310 WEST INDIANA AVENUE SALT LAKE CITY UT 84104
BS27 10216140191 STEWART GRANT 8106 S. OAKLEY AVENUE CHICAGO IL 60620
BS27 10216140207 MARTINO ANTHONY W 9617 S. COOK OAK LAWN IL 60453
BS27 10216140291 HENDERSON JOSEPH H 360 JEFFERSON GLENCOE IL 60022
BS27 10216140362 MACK ALYSE M 6544 PAU PAU COURT BEDFORD HEIGHTS OH 44146
BS27 10216140364 NEWSON CLARENCE 216 EAST 136TH ST. CHICAGO IL 60627
BS27 10216140441 GREENFIELD NEAL W 2021 NEWBURGH WESTLAND MI 48185
BS27 10216140467 BAKER DUAYNE L 10920 SW MIRA COURT TIGARD OR 97223
BS27 10216140542 CASTRO LUIS M 1007 PEARL AVENUE LAS VEGAS NV 89104
BS27 10216140545 GUEORGUIEV MILENA 655 EAST 8800 SOUTH SANDY UT 84070
BS27 10216140595 ARFAN MAE 7800 MEAD DEARBORN MI 48126
BS27 10216140625 CHERRY BRYAN J 626 WEST 4275 SOUTH RIVERDALE UT 84405
BS27 10216140658 LAVIGNE DONNA L 6054 SOUTH TAFT WAY LITTLETON CO 80127
BS27 10216140685 ALI TAHRIR 4423 LOIS DEARBORN MI 48126
BS27 10216140701 BROOKE JOHN C 2162 EAST LA VIEVE LANE TEMPE AZ 85284
BS27 10216140717 RAPPEL LINDA J 537 BLUE RIVER ROAD BRECKENRIDGE CO 80424
BS27 10216140915 MOUSOULEAS BONITA E 80 EAST JAMES RIVER ROUGE MI 48218
BS27 10216141003 BAGHDADI MOHAMAD 7427 HARTWELL DEARBORN MI 48126
BS27 10216141005 BITAR SLEIMAN 4761 HELEN DEARBORN MI 48126
BS27 10216141031 JACKSON HAL D 3362 WEST 1500 NORTH VERNAL UT 84078
BS27 10216141189 PIERSCIONEK JANUSZ 3406 W LINNEMAN STREET GLENVIEW IL 60025
BS27 10216141252 STEINEPREIS LISA A 1317 EAST UINTAH STREET COLORADO SPRINGS CO 80909
BS27 10216141257 LYMAN JACK N 307 EAST 5300 SOUTH MURRAY UT 84107
BS27 10216141435 BRIGANTE JOSEPH 2843 NORTH MELVINA AVENUE CHICAGO IL 60634
----------- ----------
111 Sale Total
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10216139252 199,750.00 199,750.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216139271 112,500.00 112,500.00 3/1/97 2/1/27 10.625 9.625 16.625 6.000
10216139287 82,400.00 82,378.31 2/1/97 1/1/27 12.375 11.375 18.375 8.000
10216139398 227,500.00 227,435.70 3/1/97 2/1/27 12.125 11.125 18.125 6.750
10216139407 153,000.00 152,954.99 2/1/97 1/1/27 11.875 10.875 17.875 7.500
10216139409 60,300.00 60,197.54 2/1/97 1/1/27 8.625 8.625 14.625 5.000
10216139504 62,500.00 62,468.44 2/1/97 1/1/27 9.375 9.375 15.375 5.750
10216139549 130,000.00 130,000.00 3/1/97 2/1/27 8.750 7.750 14.750 4.500
10216139565 81,500.00 81,500.00 3/1/97 2/1/27 7.875 6.875 13.875 3.250
10216139574 63,000.00 62,974.96 2/1/97 1/1/27 10.500 9.500 16.500 6.250
10216139597 100,000.00 100,000.00 3/1/97 2/1/27 10.375 10.375 16.375 8.000
10216139637 86,700.00 86,668.23 2/1/97 1/1/27 10.875 10.875 16.875 7.500
10216139664 152,000.00 152,000.00 3/1/97 2/1/27 12.375 11.375 18.375 8.000
10216139666 155,700.00 155,515.48 2/1/97 1/1/27 8.625 8.625 14.625 5.250
10216139691 335,750.00 335,750.00 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216139809 85,500.00 85,427.98 2/1/97 1/1/27 10.250 9.250 16.250 5.750
10216139845 168,000.00 168,000.00 3/1/97 2/1/27 10.750 9.750 16.750 6.250
10216139856 110,600.00 110,600.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216139864 73,500.00 73,472.09 2/1/97 1/1/27 10.875 9.875 16.875 6.250
10216139877 78,000.00 77,822.46 2/1/97 1/1/27 11.250 11.250 17.250 7.500
10216139952 47,000.00 46,974.33 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216139962 192,800.00 192,710.05 3/1/97 2/1/27 9.750 8.750 15.750 6.250
10216139970 119,700.00 119,647.44 3/1/97 2/1/27 10.250 9.250 16.250 6.750
10216139982 126,400.00 126,367.66 2/1/97 1/1/27 12.500 11.500 18.500 7.750
10216139994 175,000.00 174,911.63 2/1/97 1/1/27 9.375 8.375 15.375 4.750
10216140149 112,200.00 112,148.63 2/1/97 1/1/27 11.750 10.750 17.750 7.500
10216140161 50,000.00 49,965.60 3/1/97 2/1/27 7.875 7.875 13.875 4.500
10216140191 65,000.00 64,937.47 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216140207 95,500.00 95,500.00 3/1/97 2/1/27 11.000 11.000 17.000 6.750
10216140291 178,700.00 178,700.00 3/1/97 2/1/27 12.125 11.125 18.125 6.750
10216140362 80,700.00 80,700.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216140364 21,000.00 21,000.00 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10216140441 106,200.00 106,150.46 3/1/97 2/1/27 9.750 8.750 15.750 5.500
10216140467 156,400.00 156,400.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216140542 126,600.00 126,600.00 3/1/97 2/1/27 10.250 9.250 16.250 6.000
10216140545 120,700.00 120,700.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216140595 100,800.00 100,754.20 2/1/97 1/1/27 9.875 8.875 15.875 5.000
10216140625 166,400.00 166,400.00 3/1/97 2/1/27 11.000 10.000 17.000 6.750
10216140658 116,100.00 116,100.00 3/1/97 2/1/27 8.375 8.375 14.375 5.000
10216140685 71,900.00 71,900.00 3/1/97 2/1/27 9.375 9.375 15.375 5.750
10216140701 350,000.00 350,000.00 3/1/97 2/1/27 10.125 10.125 16.125 6.750
10216140717 190,000.00 190,000.00 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216140915 24,500.00 24,500.00 3/1/97 2/1/27 9.750 8.750 15.750 5.250
10216141003 115,600.00 115,600.00 3/1/97 2/1/27 8.125 8.125 14.125 4.500
10216141005 66,300.00 66,300.00 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10216141031 65,500.00 65,500.00 3/1/97 2/1/27 10.625 10.625 16.625 7.250
10216141189 153,000.00 153,000.00 3/1/97 2/1/27 9.375 9.375 15.375 6.000
10216141252 57,000.00 57,000.00 3/1/97 2/1/27 9.375 9.375 15.375 6.000
10216141257 157,500.00 157,263.28 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216141435 109,200.00 109,169.62 3/1/97 2/1/27 12.125 12.125 18.125 8.500
------------- ------------- ------ ------ ------ -----
13,129,120.00 13,123,471.40 10.268 9.556 16.268 6.084
</TABLE>
<PAGE>
Alliance Funding Company Page 4 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
BS28 10216132233 SPELMAN PATRICK J 1513 HERVEY NORTH CHICAGO IL 60064
BS28 10216135371 KOBESKE JAMES G 5448 SOUTH NORDICA AVENUE CHICAGO IL 60638
BS28 10216135646 URBAN WILLIAM 3325 140TH AVENUE NW ANDOVER MN 55304
BS28 10216136382 AMES CHRISTOPHER G 11782 SOUTH HIDDEN VALLEY ROA SANDY UT 84092
BS28 10216136411 FRANCISCO ANGELINA 7152 N. EAST PRAIRIE LINCOLNWOOD IL 60645
BS28 10216136431 IMMEL STEVEN M 446 EAST SECOND STREET FOND DU LAC WI 54935
BS28 10216137068 TOOLEY LORI K 9 WHITE OAK DRIVE LITTLETON CO 80127
BS28 10216137511 JORDAN CAROLYN 10347 SOUTH VERNON CHICAGO IL 60628
BS28 10216137973 DARRAGH DAVID EUGENE 9351 WEST SUNNYSLOPE LANE PEORIA AZ 85345
BS28 10216138038 MURPHY LYNN J 9486 SOUTH MEDALLION CIRCLE SOUTH JORDAN UT 84095
BS28 10216138111 FRITZ LU 220 WEST DEL NORTE STREET COLORADO SPRINGS CO 80907
BS28 10216138169 LEPRICH THOMAS E 312 VANDALIA STREET ELGIN IL 60123
BS28 10216138343 SCHARTZ DANIEL C 9474 S VICKI DRIVE TUCSON AZ 85736
BS28 10216138490 MERCER BRADFORD D 12511 SOUTH BEAR MOUNTAIN DR DRAPER UT 84020
BS28 10216138547 BROWN CLINTON G 421 MEADOWLARK ROAD BLOOMINGDALE IL 60108
BS28 10216138558 ALHABHAB JABER 7840 MEAD DEARBORN MI 48126
BS28 10216138650 BONI CARL V 582 KRENZ AVENUE CARY IL 60013
BS28 10216138761 CAMBA-REGALA AGNES 4819 WRIGHT TERRACE SKOKIE IL 60077
BS28 10216138769 BLANCHARD DARYL W 9786 MARTIN ROAD WEST SALEM OH 44287
BS28 10216138811 WHITE DOUGLAS A 725 140TH AVENUE SW TENINO WA 98589
BS28 10216138838 COOK VIOLA 6829 SOUTH MARSHFIELD CHICAGO IL 60636
BS28 10216138846 KENNEDY PATRICK M 215 S. 15TH STREET SEBRING OH 44672
BS28 10216138924 PARKER BEN S 805 SOUTH ELMWOOD AVENUE OAK PARK IL 60304
BS28 10216139076 PERKINS CARRIE V 1200 EAST 36TH AVENUE GARY IN 46409
BS28 10216139135 FOWLKES RONNIE R 6114 GUILD DRIVE FORT WAYNE IN 46816
BS28 10216139231 GILLIAM OLUFUNKE 15325 BOICHOT LANSING MI 48906
BS28 10216139256 HILLIS RAYMOND E 69 JAQUELINE LANE CRESTED BUTTE CO 81224
BS28 10216139263 GRIFFITH ANDREA A 1097 PREVOST COURT SAN JOSE CA 95125
BS28 10216139313 BRADY ALAN S 729 GOODWIN DRIVE PARK RIDGE IL 60068
BS28 10216139451 MAURICH STEPHEN A 4407 COOLIDGE PLACE BOULDER CO 80303
BS28 10216139501 OUZA RIMA 5903 STEADMAN DEARBORN MI 48126
BS28 10216139538 LILJENQUIST BYRON E 1644 EAST OLD LAKE LANE FRUIT HEIGHTS UT 84037
BS28 10216139599 ALGHAZALY FAEK 7546 WINTHROP DETROIT MI 48228
BS28 10216139602 WITCZAK EDWARD M 315 SPEEDWAY COURT SLINGER WI 53086
BS28 10216139709 HARRIS NELDA K 1763 K 6/10 ROAD FRUITA CO 81521
BS28 10216139853 TRUESDILL MICHAEL P 1641 DEWEY ST BELOIT WI 53511
BS28 10216139920 JAURIGUE RAMON R E 1301 SOUTH CAMINO DEL SIERRA TUCSON AZ 85743
BS28 10216139956 HERNANDEZ ENRIQUE 2508 SOUTH FIRST AVENUE NORTH RIVERSIDE IL 60546
BS28 10216139964 SOBH AHMAD S 6236 KENDAL DEARBORN MI 48126
BS28 10216139974 DAVIES GERALDINE 15920 KINLOCH REDFORD TOWNSHIP MI 48239
BS28 10216140073 WILSON DOUGLAS M 1223 6TH STREET BOULDER CO 80302
BS28 10216140079 TRAN HIEN TRONG 11912 9TH AVENUE WEST EVERETT WA 98204
BS28 10216140142 HOLLAND JR ROBERT G 24340 NORTHEAST 50TH STREET REDMOND WA 98053
BS28 10216140201 WISNIEWSKI ROBERT B 3301 SAUK DR NEW LENOX IL 60451
BS28 10216140210 HOQUE SYED N 3098 LEHMAN HAMTRAMCK MI 48212
BS28 10216140695 KLUGER ALAN M 4501 EAST HAMBLIN DRIVE PHOENIX AZ 85024
BS28 10216140720 BRINK JON S 1291 MAGNOLIA LANE MOUNT VERNON WA 98273
BS28 10216140728 MICHEL MARY K 2360 EAST ILIFF AVENUE #104 DENVER CO 80210
BS28 10216140738 BIGAM JR CLYDE R 3719 EAST 113TH AVENUE THORNTON CO 80233
BS28 10216140886 RATHBUN SCOTT 26295 10TH STREET WEST ZIMMERMAN MN 55398
BS28 10216140957 WILEY SARAH J 1096 FULTON STREET AURORA CO 80010
BS28 10216140963 SPENCER GREGORY 991 ALMOND DRIVE AURORA IL 60506
BS28 10216140968 WILLARD TOM F 50637 JIM DR. NEW BALTIMORE MI 48047
BS28 10216140986 RICHARDSON RICHARD L 1142 FOWLER AVENUE EVANSTON IL 60202
BS28 10216141039 SHABECK DENNIS M 2255 BRENT CIRCLE COLORADO SPRINGS CO 80920
BS28 10216141052 WITT KARIE L 3442 EAST CAMPBELL AVENUE PHOENIX AZ 85018
BS28 10216141127 HASTINGS ELDON 24 EAST SILVER CREEK ROAD GILBERT AZ 85296
BS28 10216141147 FAESTEL CATHERINE D 7854 SOUTH ARGONNE COURT AURORA CO 80016
BS28 10216141262 HAGERMAN JAMES M 2372 RANA DRIVE GRAND JUNCTION CO 81501
BS28 10216141313 MCDONALD DANA 941 WEST 129TH PLACE CHICAGO IL 60643
BS28 10216141333 BURRELL DONALD E 3915 COMMENCEMENT BAY DRIVE TACOMA WA 98407
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10216132233 57,000.00 56,972.70 2/1/97 1/1/27 9.625 9.625 15.625 6.250
10216135371 85,000.00 84,911.62 12/1/96 11/1/26 12.500 12.500 18.500 8.750
10216135646 322,100.00 321,991.26 2/1/97 1/1/27 11.250 10.250 17.250 6.750
10216136382 272,000.00 271,917.74 2/1/97 1/1/27 11.750 10.750 17.750 7.500
10216136411 238,000.00 237,915.14 2/1/97 1/1/27 11.000 10.000 17.000 6.000
10216136431 52,500.00 52,447.34 2/1/97 1/1/27 8.625 7.625 14.625 3.750
10216137068 324,700.00 324,700.00 3/1/97 2/1/27 8.750 7.750 14.750 4.500
10216137511 92,000.00 92,000.00 3/1/97 2/1/27 12.500 11.500 18.500 7.500
10216137973 75,600.00 75,573.04 3/1/97 2/1/27 11.000 10.000 17.000 6.750
10216138038 288,150.00 288,150.00 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216138111 289,000.00 289,000.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216138169 82,400.00 82,377.70 3/1/97 2/1/27 12.250 11.250 18.250 7.250
10216138343 36,000.00 35,978.75 3/1/97 2/1/27 8.625 8.625 14.625 5.250
10216138490 259,000.00 259,000.00 3/1/97 2/1/27 11.250 10.250 17.250 6.500
10216138547 157,250.00 157,156.92 1/1/97 12/1/26 11.875 10.875 17.875 7.500
10216138558 25,000.00 24,986.34 2/1/97 1/1/27 9.000 8.000 15.000 4.500
10216138650 157,250.00 157,250.00 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10216138761 225,000.00 225,000.00 3/1/97 2/1/27 11.250 10.250 17.250 6.750
10216138769 106,200.00 106,141.99 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216138811 200,000.00 200,000.00 3/1/97 2/1/27 11.000 10.000 17.000 6.750
10216138838 51,000.00 50,972.14 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216138846 44,000.00 44,000.00 3/1/97 2/1/27 11.500 10.500 17.500 7.000
10216138924 108,000.00 108,000.00 3/1/97 2/1/27 10.500 9.500 16.500 5.750
10216139076 33,700.00 33,700.00 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10216139135 58,100.00 58,075.64 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216139231 195,500.00 195,500.00 3/1/97 2/1/27 11.250 10.250 17.250 7.750
10216139256 260,000.00 260,000.00 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216139263 131,250.00 131,250.00 3/1/97 2/1/27 8.375 7.375 14.375 3.750
10216139313 153,700.00 153,700.00 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10216139451 227,800.00 227,800.00 3/1/97 2/1/27 10.625 9.625 16.625 6.250
10216139501 69,600.00 69,567.50 2/1/97 1/1/27 9.750 9.750 15.750 6.000
10216139538 477,000.00 477,000.00 3/1/97 2/1/27 10.000 9.000 16.000 5.250
10216139599 54,000.00 53,971.88 2/1/97 1/1/27 9.375 9.375 15.375 5.750
10216139602 73,000.00 73,000.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216139709 232,475.00 232,475.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216139853 25,200.00 25,200.00 3/1/97 2/1/27 9.750 8.750 15.750 5.250
10216139920 72,800.00 72,800.00 3/1/97 2/1/27 10.375 9.375 16.375 7.000
10216139956 134,000.00 134,000.00 3/1/97 2/1/27 10.125 9.125 16.125 5.500
10216139964 64,000.00 63,965.04 2/1/97 1/1/27 9.000 8.000 15.000 4.500
10216139974 63,900.00 63,879.58 2/1/97 1/1/27 11.500 10.500 17.500 7.000
10216140073 294,000.00 294,000.00 3/1/97 2/1/27 8.125 7.125 14.125 3.500
10216140079 131,900.00 131,835.12 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216140142 230,000.00 230,000.00 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216140201 144,000.00 144,000.00 4/1/97 3/1/27 10.500 9.500 16.500 5.750
10216140210 25,600.00 25,592.68 3/1/97 2/1/27 12.000 11.000 18.000 7.250
10216140695 183,700.00 183,700.00 3/1/97 2/1/27 10.125 10.125 16.125 6.750
10216140720 172,000.00 172,000.00 3/1/97 2/1/27 12.000 11.000 18.000 7.250
10216140728 65,000.00 65,000.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216140738 96,000.00 96,000.00 3/1/97 2/1/27 10.375 10.375 16.375 7.000
10216140886 95,400.00 95,360.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216140957 77,600.00 77,600.00 3/1/97 2/1/27 10.125 10.125 16.125 6.750
10216140963 121,600.00 121,600.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216140968 75,000.00 74,959.03 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216140986 80,000.00 80,000.00 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216141039 157,500.00 157,500.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216141052 161,500.00 161,500.00 3/1/97 2/1/27 10.875 10.875 16.875 7.500
10216141127 180,000.00 179,934.05 3/1/97 2/1/27 10.875 10.875 16.875 7.250
10216141147 496,000.00 496,000.00 4/1/97 3/1/27 10.500 9.500 16.500 6.250
10216141262 125,000.00 125,000.00 3/1/97 2/1/27 10.500 9.500 16.500 6.250
10216141313 54,000.00 54,000.00 3/1/97 2/1/27 12.250 11.250 18.250 6.750
10216141333 120,000.00 119,953.58 3/1/97 2/1/27 10.625 10.625 16.625 7.250
</TABLE>
<PAGE>
Alliance Funding Company Page 5 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
BS28 10216141344 HACKWORTH MELVIN C 4631 SOUTH 375 EAST WASHINGTON TERRACE UT 84405
BS28 10216141384 ROKOS WARREN 4113 EAST DESERT COVE AVENUE PHOENIX AZ 85028
BS28 10216141579 MCCLOUD BRENDA 3055 SOUTH BONFIELD CHICAGO IL 60608
BS28 10216141580 DECKER MARGIE ANN 6001 EVERGREEN ROAD MOUND MN 55364
BS28 10216141868 MIFSUD DENISE M 2543 TAMPA WALLED LAKE MI 48390
BS28 10216141986 JANKOVIC DRAGAN 3509 W. MONTROSE CHICAGO IL 60618
BS28 10216142175 BRADLEY-KEITH LATANYA 8157 LAKE CREST DRIVE YPSILANTI MI 48197
BS28 10216142246 ALI MOUSA 8039 SOUTH MASSASOIT BURBANK IL 60459
----------- --------------------------
69 Sale Total
183 Total with Banco Santander
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10216141344 87,300.00 87,300.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216141384 122,900.00 122,900.00 3/1/97 2/1/27 10.500 9.500 16.500 6.250
10216141579 85,000.00 84,926.04 3/1/97 2/1/27 10.250 9.250 16.250 5.500
10216141580 123,200.00 123,200.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216141868 206,200.00 206,128.46 3/1/97 2/1/27 11.125 10.125 17.125 6.750
10216141986 87,700.00 87,700.00 3/1/97 2/1/27 11.750 10.750 17.750 6.750
10216142175 176,000.00 176,000.00 4/1/97 3/1/27 11.200 11.200 17.200 7.500
10216142246 139,500.00 139,446.04 3/1/97 2/1/27 10.625 10.625 16.625 6.750
------------- -------------- ------ ------ ------ -------
9,986,775.00 9,985,462.32 10.381 9.524 16.381 6.043
23,505,045.00 23,497,356.95 10.323 9.562 16.323 6.087
</TABLE>
<PAGE>
Alliance Funding Company Page 6 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
ML156 10216134289 OVERTON ROBERT 930 UNION BLVD NORTH COLORADO SPRINGS CO 80909
ML156 10216135114 ROGERS JOHN C 1575 DIXIE WAY MELBOURNE FL 32935
ML156 10216135254 MEITZ GERALD C JR 129 GREYMON DRIVE WEST PALM BEACH FL 33405
ML156 10216135853 BARNES DENNIS M 423 EAST 3RD STREET NEWPORT KY 41071
ML156 10216135939 BOYD CREOLA 4829 W. THOMAS ST. CHICAGO IL 60651
ML156 10216135965 RAMOS MELINDA A 74 ROOSEVELT AVENUE JERSEY CITY NJ 07304
ML156 10216136352 CORREALE JAMES JR 327 EAST CHESTNUT STREET HAZLETON PA 18201
ML156 10216136425 RYMER TODD A 109 S. MAIN STREET DEERFIELD WI 53531
ML156 10216136653 JOHNSON CRAIG B 416 W. 6TH ST. COVINGTON KY 41011
ML156 10216137278 WURZ DONNA 177 FRONT STREET BEREA OH 44017
ML156 10216137539 DOMURATH JR SIEGFRIED E 5405 RECREATION DRIVE WEST BLOOMFIELD TWSP MI 48324
ML156 10216137631 REHM RICHARD 2728 LANCASTER DRIVE JOLIET IL 60432
ML156 10216137638 TAGGART MARION F 326 ELM STREET MENASHA WI 54952
ML156 10216137833 TAYLOR DON W 9216 HENDERSON ROAD OTISVILLE MI 48463
ML156 10216138041 PERGESON LOYD 912 W ARIZONA STREET HOLBROOK AZ 86025
ML156 10216138227 NGUYEN CAROL 7444 S MILWAUKEE CT LITTLETON CO 80122
ML156 10216138258 GRAVES CARL M 1206 AUBURN DRIVE COLORADO SPRINGS CO 80909
ML156 10216138282 CARROLL LAWRENCE E 4840 WEST WINDSOR AVENUE PHOENIX AZ 85035
ML156 10216138295 WINKLE CALVIN R VAN 1650 KINGS VALLEY HIGHWAY DALLAS OR 97338
ML156 10216138332 RABANAL ALBERT LUCAS 6283 EAST 123RD AVENUE BRIGHTON CO 80601
ML156 10216138336 LUTZ FREDRIC R 5640 N WILLIAMSON VALLEY ROAD PRESCOTT AZ 86301
ML156 10216138383 SMITH CHARLES E 439 EVERS STREET AKRON OH 44310
ML156 10216138468 COLLINS WHITFIELD J 1769 CASEY COURT LAFAYETTE CO 80026
ML156 10216138473 CHRISTENSEN CHRISTINE D 1532 WEST MARTY CIRCLE WEST JORDAN UT 84084
ML156 10216138494 MCCARTY CALVIN 1359 WEST 133RD WAY WESTMINSTER CO 80234
ML156 10216138528 MENARD OLIVER J 36W971 THORN TREE ROAD ST. CHARLES IL 60174
ML156 10216138574 MOORE JAMES R 304 ROCK HILL KETTERING OH 45429
ML156 10216138676 DAINES BRIAN WILLIAM 1206 NORTH BROADWAY MILWAUKEE WI 53202
ML156 10216138683 GONZALES RICHARD J 3639 KATELYN WAY INDIANAPOLIS IN 46228
ML156 10216138719 BEACH DANIEL T 11737 EATON COURT BROOMFIELD CO 80020
ML156 10216138728 GRAVES EDGAR L 10611 9TH AVE CT S TACOMA WA 98444
ML156 10216138746 BROWN MARY E 1465 DIXON DRIVE SANDUSKY OH 44870
ML156 10216138778 FOOTIT MICHAEL J 1306 KENSINGTON AVE. OSHKOSH WI 54901
ML156 10216138830 MCCLOSKEY PATRICK J 2006 9TH AVENUE SOUTHEAST PUYALLUP WA 98372
ML156 10216138861 KHORI ZIAD T 22020 COOLIDGE OAK PARK MI 48237
ML156 10216138881 NAUDE EDUARDO J 2685 SOUTH DAYTON WAY #82 DENVER CO 80231
ML156 10216138906 FERNANDEZ JIMMY L 702 MANITOBA DRIVE COLORADO SPRINGS CO 80910
ML156 10216138931 BROWN MARY A 249 CALUMET BOULEVARD HARVEY IL 60426
ML156 10216138971 SORENSEN MARILYN DIANE 2001 SOUTH JULIAN AVENUE DENVER CO 80219
ML156 10216138994 STOCKER JOHN A 2837 SOUTH FILLMORE AVENUE OGDEN UT 84403
ML156 10216139006 WING DARRELL R 344 BUTTE COURT SE SALEM OR 97301
ML156 10216139113 BOHAC WILLIAM P 7002 HIAWATHA DRIVE WONDER LAKE IL 60097
ML156 10216139145 RUSSELL JIM D 32 GARDEN STREET REDWOOD CITY CA 94063
ML156 10216139167 FORGET ALFONSO G PADILLA LANE ROAD #1326 HOUSE ESPANOLA NM 87532
ML156 10216139172 JEVICKA MILENA 13702 WEST TUFTS AVENUE MORRISON CO 80465
ML156 10216139254 HOOBYAR LUTHER THOMAS 264 ANDSBURY AVENUE MOUNTAIN VIEW CA 94043
ML156 10216139258 VALDOVINO CESAR 17815 NE FLANDERS STREET PORTLAND OR 97230
ML156 10216139323 BONNI ANTHONY M N1467 CEDAR ROAD PELL LAKE WI 53147
ML156 10216139368 RUIZ PEDRO 5638 OAK STREET LAS VEGAS NV 89120
ML156 10216139467 BROWN DAVID G 220 CRAGMORE STREET DENVER CO 80221
ML156 10216139500 RODRIGUEZ EFRAIN V 2326 S. HOMAN CHICAGO IL 60623
ML156 10216139541 PEARSON BARBARA M 3193 NORTH MOUNTAIN ROAD OGDEN UT 84414
ML156 10216139554 CHAMBERS RICHARD E 231 WEST 1650 NORTH HARRISVILLE UT 84404
ML156 10216139616 DILWORTH ASAEL 924 22ND STREET OGDEN UT 84401
ML156 10216139632 HESS PAUL M 4330 E GATEWOOD ROAD PHOENIX AZ 85024
ML156 10216139649 BORTNIKER DORIS F 2526 EAST 21ST STREET TUCSON AZ 85711
ML156 10216139706 DEPAZ GUILLERMO 4828 SE HENRY STREET PORTLAND OR 97206
ML156 10216139842 GILNA DEREK A 233 EAST ERIE UNIT 1008 CHICAGO IL 60611
ML156 10216139882 HUTTON LESLIE E 720 RUSSELL STREET CRAIG CO 81625
ML156 10216139993 BROOKS-WEIK BRENDA K 1034 E HARVARD AVENUE GILBERT AZ 85234
ML156 10216139997 DOOLEY JAMES E 513 MINTGREEN CIRCLE MURRAY UT 84107
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10216134289 72,000.00 72,000.00 3/1/97 2/1/27 11.375 10.375 17.375 7.000
10216135114 44,000.00 44,000.00 3/1/97 2/1/27 11.500 10.500 17.500 7.250
10216135254 130,200.00 130,200.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216135853 157,200.00 157,200.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216135939 86,700.00 86,700.00 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10216135965 74,700.00 74,664.22 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216136352 37,500.00 37,500.00 3/1/97 2/1/27 11.625 10.625 17.625 6.750
10216136425 97,200.00 97,159.24 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216136653 52,700.00 52,700.00 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10216137278 92,800.00 92,800.00 3/1/97 2/1/27 11.500 10.500 17.500 7.000
10216137539 89,600.00 89,547.10 3/1/97 2/1/27 8.625 7.625 14.625 4.750
10216137631 101,500.00 101,500.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216137638 64,000.00 64,000.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216137833 90,000.00 89,958.01 3/1/97 2/1/27 9.750 8.750 15.750 5.500
10216138041 76,500.00 76,500.00 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216138227 156,800.00 156,800.00 3/1/97 2/1/27 11.375 10.375 17.375 7.000
10216138258 112,000.00 111,963.21 3/1/97 2/1/27 11.375 10.375 17.375 7.000
10216138282 54,900.00 54,900.00 3/1/97 2/1/27 10.000 9.000 16.000 5.750
10216138295 118,800.00 118,743.09 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216138332 122,560.00 122,560.00 3/1/97 2/1/27 11.375 10.375 17.375 7.000
10216138336 154,800.00 154,800.00 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216138383 22,500.00 22,500.00 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10216138468 140,000.00 140,000.00 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216138473 88,000.00 88,000.00 3/1/97 2/1/27 12.000 11.000 18.000 7.250
10216138494 135,900.00 135,839.50 3/1/97 2/1/27 10.000 9.000 16.000 5.750
10216138528 155,200.00 155,200.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216138574 40,000.00 40,000.00 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216138676 30,000.00 29,982.29 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216138683 157,700.00 157,642.22 2/1/97 1/1/27 10.875 9.875 16.875 6.250
10216138719 140,800.00 140,800.00 3/1/97 2/1/27 10.500 9.500 16.500 6.250
10216138728 145,000.00 144,909.88 3/1/97 2/1/27 8.375 7.375 14.375 3.750
10216138746 51,000.00 50,972.14 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216138778 83,600.00 83,564.94 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216138830 109,600.00 109,600.00 3/1/97 2/1/27 11.375 10.375 17.375 7.000
10216138861 21,600.00 21,593.82 2/1/97 1/1/27 12.000 11.000 18.000 7.250
10216138881 99,450.00 99,450.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216138906 58,875.00 58,875.00 3/1/97 2/1/27 8.375 7.375 14.375 3.750
10216138931 46,700.00 46,682.89 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10216138971 63,750.00 63,722.54 3/1/97 2/1/27 10.125 9.125 16.125 5.750
10216138994 144,000.00 143,929.17 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216139006 72,250.00 72,250.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216139113 58,600.00 58,600.00 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216139145 199,750.00 199,750.00 3/1/97 2/1/27 11.750 10.750 17.750 7.500
10216139167 148,500.00 148,500.00 3/1/97 2/1/27 10.000 9.000 16.000 5.750
10216139172 106,250.00 106,250.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216139254 195,300.00 195,300.00 3/1/97 2/1/27 10.000 9.000 16.000 5.750
10216139258 91,760.00 91,714.86 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216139323 100,800.00 100,800.00 3/1/97 2/1/27 12.000 11.000 18.000 7.250
10216139368 292,000.00 291,889.83 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216139467 75,150.00 75,114.00 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216139500 126,000.00 126,000.00 3/1/97 2/1/27 9.750 8.750 15.750 6.000
10216139541 141,600.00 141,600.00 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216139554 118,150.00 118,150.00 3/1/97 2/1/27 10.625 9.625 16.625 6.250
10216139616 60,400.00 60,382.72 3/1/97 2/1/27 12.000 11.000 18.000 7.250
10216139632 115,400.00 115,347.58 3/1/97 2/1/27 9.875 8.875 15.875 5.500
10216139649 46,150.00 46,150.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216139706 80,500.00 80,500.00 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216139842 50,000.00 49,976.67 2/1/97 1/1/27 9.750 9.750 15.750 6.000
10216139882 64,600.00 64,600.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216139993 132,000.00 132,000.00 4/1/97 3/1/27 10.875 9.875 16.875 6.250
10216139997 120,000.00 120,000.00 3/1/97 2/1/27 9.250 8.250 15.250 4.500
</TABLE>
<PAGE>
Alliance Funding Company Page 7 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
ML156 10216140097 NOE RODNEY H 6900 NORTH HAMLIN AVENUE LINCOLNWOOD IL 60645
ML156 10216140109 GILNA DEREK A 9588 TERRACE UNIT 106F DES PLAINES IL 60016
ML156 10216140127 HENRIE DAVID E 895 ETON COURT SOUTH LYON MI 48178
ML156 10216140176 BARNES LARRY GLENN 1660 ROUTT STREET LAKEWOOD CO 80215
ML156 10216140228 MILLER RANDON L 5101 N CASA BLANCA #238 SCOTTSDALE AZ 85253
ML156 10216140290 BROWN CHARITY LOUISE 212 DEWEY AVENUE EVANSTON IL 60202
ML156 10216140293 KOZAK RICHARD 1515 JANET DOWNERS GROVE IL 60515
ML156 10216140331 LUCERO GEORGE G 4720 VALLEJO STREET DENVER CO 80211
ML156 10216140342 HITCHMAN RALPH F 14101 19TH DRIVE SE MILL CREEK WA 98012
ML156 10216140345 STEIN AMY RENEE 7557 ORTEGA SPRING AVENUE LAS VEGAS NV 89128
ML156 10216140351 BURASH MICHAEL A 218 WEST 1ST STREET STREATOR IL 61364
ML156 10216140471 LUNA MARIA G 201 SOUTH CHESTNUT STREET TOPPENISH WA 98948
ML156 10216140572 WILLIAMS KENNETH C 8100 WEST 52ND AVENUE ARVADA CO 80002
ML156 10216140696 ELLIS VIRGINIA KAY 1795 SW BINFORD AVENUE GRESHAM OR 97080
ML156 10216140955 TALTY TROY A 6811 WEST AIRE LIBRE AVENUE GLENDALE AZ 85382
ML156 10216140962 PYLE ANNE 2722 SOUTH NELSON COURT LAKEWOOD CO 80227
ML156 10216141107 SPACCAROTELLI EDWARD V 5200 E. TEN MILE WARREN MI 48091
ML156 10216141110 PEARSON MICHAEL G 2064 GRACE ROCHESTER HILLS MI 48309
ML156 10216141151 PHILLIPS JOHN W 1329 NORTH MALIBU LANE GILBERT AZ 85296
ML156 10216141238 SALAZAR-APARIC DEBRA ANNE 6623 SE 71ST AVENUE PORTLAND OR 97206
ML156 10216141240 WONG ROBERT C 830-834 ARGUELLO BOULEVARD SAN FRANCISCO CA 94118
ML156 10216141270 MARES DENNIS E 1081 EAST 119TH PLACE NORTHGLENN CO 80233
ML156 10216141334 SINITSYN IGOR 3735 EAST MOUNTAIN OAKS COVE SALT LAKE CITY UT 84121
ML156 10216141408 EASTBURN DRAKE 2711 WEST CORNELL AVENUE DENVER CO 80236
ML156 10216141722 CERDA VICTOR M 3516 E VERBENA DRIVE PHOENIX AZ 85044
ML156 10216141910 CHURCHILL ANGELA K 1861 CLEVELAND ROAD GLENDALE CA 91202
ML156 10216142013 NGUYEN VINH Q 205 IMAGES CIRCLE MILPITAS CA 95035
ML156 10216142048 EGGERT THOMAS 11966 NORTH 114TH WAY SCOTTSDALE AZ 85259
ML156 10216142053 GOZA CLIFTON W 2110 SILKWOOD DRIVE COLORADO SPRINGS CO 80920
ML156 10216142179 HUGHES EARL G 921 YORK ST. NEWPORT KY 41071
ML156 10216142182 KENNA CAROLYN J 505 ELMWOOD PLACE LIMA OH 45801
ML156 10216142272 PFEFFER STEVEN R 30146 FIDDLERS GREEN FARMINGTON HILLS MI 48334
------------------------------
93 Sale Total
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10216140097 120,000.00 119,966.61 3/1/97 2/1/27 12.125 11.125 18.125 6.750
10216140109 41,200.00 41,180.78 2/1/97 1/1/27 9.750 9.750 15.750 6.000
10216140127 156,900.00 156,900.00 3/1/97 2/1/27 9.750 8.750 15.750 5.250
10216140176 93,500.00 93,500.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216140228 175,000.00 175,000.00 3/1/97 2/1/27 8.625 8.625 14.625 5.000
10216140290 124,000.00 124,000.00 3/1/97 2/1/27 12.500 11.500 18.500 7.500
10216140293 48,000.00 47,986.64 3/1/97 2/1/27 12.125 11.125 18.125 6.750
10216140331 85,000.00 85,000.00 3/1/97 2/1/27 10.625 9.625 16.625 6.250
10216140342 192,000.00 192,000.00 3/1/97 2/1/27 11.250 10.250 17.250 6.750
10216140345 84,100.00 84,100.00 3/1/97 2/1/27 10.500 9.500 16.500 6.250
10216140351 105,000.00 104,938.01 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216140471 52,500.00 52,500.00 3/1/97 2/1/27 11.750 10.750 17.750 7.000
10216140572 127,500.00 127,500.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216140696 125,800.00 125,800.00 3/1/97 2/1/27 11.750 10.750 17.750 7.500
10216140955 78,300.00 78,300.00 3/1/97 2/1/27 10.125 10.125 16.125 6.750
10216140962 350,819.00 350,819.00 3/1/97 2/1/27 9.875 9.875 15.875 6.200
10216141107 91,000.00 91,000.00 4/1/97 3/1/27 11.250 10.250 17.250 6.000
10216141110 68,400.00 68,400.00 3/1/97 2/1/27 9.875 8.875 15.875 6.000
10216141151 89,600.00 89,557.07 3/1/97 2/1/27 9.625 9.625 15.625 6.250
10216141238 68,000.00 68,000.00 3/1/97 2/1/27 13.000 12.000 19.000 8.250
10216141240 392,000.00 392,000.00 4/1/97 3/1/27 10.750 9.750 16.750 6.250
10216141270 92,000.00 92,000.00 3/1/97 2/1/27 12.250 11.250 18.250 7.250
10216141334 239,400.00 239,400.00 3/1/97 2/1/27 8.625 8.625 14.625 5.000
10216141408 92,000.00 92,000.00 4/1/97 3/1/27 10.375 10.375 16.375 6.750
10216141722 124,650.00 124,650.00 3/1/97 2/1/27 9.375 9.375 15.375 5.750
10216141910 293,250.00 293,123.69 3/1/97 2/1/27 10.125 10.125 16.125 6.500
10216142013 229,400.00 229,400.00 4/1/97 3/1/27 9.250 8.250 15.250 4.750
10216142048 350,000.00 350,000.00 3/1/97 2/1/27 9.875 9.875 15.875 6.250
10216142053 138,600.00 138,600.00 3/1/97 2/1/27 9.875 8.875 15.875 5.000
10216142179 29,200.00 29,200.00 3/1/97 2/1/27 10.125 9.125 16.125 5.000
10216142182 41,600.00 41,600.00 4/1/97 3/1/27 12.750 11.750 18.750 7.500
10216142272 153,000.00 153,000.00 4/1/97 3/1/27 10.500 9.500 16.500 6.750
------------- ------------- ------ ------ ------ ------
10,567,014.00 10,565,756.72 10.248 9.427 16.248 5.928
</TABLE>
<PAGE>
Alliance Funding Company Page 8 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
ML157 10216133080 PRINCE DONALD 3612 SOUTH ELLIS AVENUE CHICAGO IL 60653
ML157 10216134738 MARINELLIE BRIAN 120 CENTER STREET EAST STROUDSBURG PA 18301
ML157 10216134942 STRINGER LOUISE A 7981 CLAIRBORNE LANE INVER GROVE HEIGHTS MN 55076
ML157 10216135052 TAYLOR-GANZER DEBRA 2515 HIGH ST. BLUE ISLAND IL 60406
ML157 10216135773 BOWEN WILLIAM J 6225 FARNSWORTH STREET PHILADELPHIA PA 19126
ML157 10216135842 COBB BRYAN L 415 BARBER ANN ARBOR MI 48103
ML157 10216136183 LEHMAN LEONARD A JR 575 DREXEL AVENUE GLENCOE IL 60022
ML157 10216136195 SMAJDA JACQUELINE E 616 N CANTERBURY DRIVE APPLETON WI 54915
ML157 10216136317 SNYDER JAMES K 1576 MCCLAIN LINCOLN PARK MI 48146
ML157 10216136407 THOMPKINS ZACHERY K 16810 GREENWOOD SOUTH HOLLAND IL 60473
ML157 10216136416 OBRIEN BONITA A 1816 WILLOW ROAD TWIN LAKES WI 53181
ML157 10216136427 SMITH JOY J 1133 ALGOMA BLVD. OSHKOSH WI 54901
ML157 10216136751 CROHN DUANE E 11401 SWALLOW CIRCLE N.W. COON RAPIDS MN 55433
ML157 10216136783 SMITH CLARENCE L 403 FIRST STREET SUMMERDALE PA 17093
ML157 10216136787 VORKAPICH RUDY 423 LONG RUN ROAD MC KEESPORT PA 15132
ML157 10216136878 SEIDA LOWELL M 10332 BOND STREET WESTCHESTER IL 60154
ML157 10216136890 DREYER JOSEPH 16401 PAXTON AVENUE TINLEY PARK IL 60477
ML157 10216136892 ZIELINSKI THEODORE V JR 322 E. NINTH STREET LOCKPORT IL 60441
ML157 10216136981 HODLE JOSEPH 97 WASHINGTON AVE PLYMOUTH PA 18651
ML157 10216137135 MILLER ANTON 1215 NORTH ALLISON STREET PHILADELPHIA PA 19131
ML157 10216137281 WURZ DONNA 181 FRONT STREET BEREA OH 44017
ML157 10216137295 GULLEY BESSIE 23748 PHILLIPS SOUTHFIELD MI 48034
ML157 10216137308 WENDLER LEONARD M 652 MCKINLEY ST. NEENAH WI 54956
ML157 10216137420 GUYTON AARON K 5994 HARVARD DETROIT MI 48224
ML157 10216137469 KAMINSKI JAMES A 4244 GREEBY STREET PHILADELPHIA PA 19135
ML157 10216137524 KACOS GEORGE 3670 LEXINGTON DRIVE HOFFMAN ESTATES IL 60195
ML157 10216137533 GONZALEZ ROGELIO P G 5394 W. COURT ST FLINT MI 48532
ML157 10216137615 COLLINS DENICE 8556 MORRIS ROAD GOODELLS MI 48027
ML157 10216137759 DALEY GARY 368 SOUTH 700 WEST PROVO UT 84601
ML157 10216137811 CALHOUN JOHNNIE LEE 15532 S. HONORE HARVEY IL 60426
ML157 10216137908 JENKINS SOLOMON JR 4617 N. 53RD STREET MILWAUKEE WI 53218
ML157 10216137921 BROOKS CLOPTON WINONA 3890 EAST 149TH STREET CLEVELAND OH 44128
ML157 10216137994 OWINGS ROBERT 432 CHURCH STREET WEST CHICAGO IL 60185
ML157 10216138067 GUSTAVSON MARK STEVEN 1348 EAST LONGDALE DRIVE SANDY UT 84092
ML157 10216138144 HEGWOOD CATHERINE 214 S. LOMBARD ST. OAK PARK IL 60302
ML157 10216138182 KINDALL BRAD A 8655 INDAHL AVENUE SOUTH COTTAGE GROVE MN 55016
ML157 10216138283 MILLER ERIC ALDEN 1064 E SANDPIPER DRIVE TEMPE AZ 85283
ML157 10216138299 FULLER JACK M 920 CHRISTOPHER WAY MENLO PARK CA 94025
ML157 10216138305 HERNANDEZ FRANK S 11170 CHERRY CIRCLE THORNTON CO 80233
ML157 10216138372 CREEK BARBARA P 1648 SOUTH JAY STREET LAKEWOOD CO 80232
ML157 10216138394 ATKINS MARK A 554 INCA BOULEVARD CAROL STREAM IL 60188
ML157 10216138462 CASSELMAN SCOTT A 374 SOUTH LINCOLN STREET DENVER CO 80211
ML157 10216138486 MORATTI JERRY L 714 WEST 2ND STREET MESA AZ 85201
ML157 10216138495 PEEBLES CEDRIC D 379 LILAC CIRCLE LOUISVILLE CO 80027
ML157 10216138525 OSBORNE RICHARD W 718 CELTIC ASH COURT NAPERVILLE IL 60540
ML157 10216138533 STOKES JAMES A 1540 EAST 83RD STREET CHICAGO IL 60619
ML157 10216138672 PRATER DONNELL 438 E. 49TH ST. CHICAGO IL 60615
ML157 10216138673 JOHNSON RICHARD 71 RAILROAD ROAD ALBANY MN 56307
ML157 10216138775 SADOWSKI JAMES ABYSIUS 2333 S. 134TH ST. NEW BERLIN WI 53151
ML157 10216138781 ROSE ROBERT J 22139 FENWAY ROAD COLD SPRING MN 56320
ML157 10216138789 BAKER LINDA G 3209 SHERMAN COURT ANDERSON IN 46016
ML157 10216138805 WIGGINS BRENT L 438 WEST 2400 SOUTH BOUNTIFUL UT 84010
ML157 10216138813 ECKHARDT GARY NEIL 7312 MARSHALL ROAD LARKSPUR CO 80118
ML157 10216138814 MCCANDLESS DAN 736 EAST 9990 SOUTH SANDY UT 84094
ML157 10216138833 MCGOWIN CHIQUITA HYSAW 4190 ARGONNE STREET DENVER CO 80249
ML157 10216138910 GRIPPA MICHAEL A 7365 WEBSTER STREET ARVADA CO 80003
ML157 10216138942 LUDVIGSEN LISA L 616 BONNER ROAD WAUCONDA IL 60084
ML157 10216139058 GARCIA FRANCISCO 6328 WEST VERDE LANE PHOENIX AZ 85033
ML157 10216139063 EGGLESTON SCOTT W 28440 YELLOW JACKET DRIVE STEAMBOAT SPRINGS CO 80477
ML157 10216139078 WATSON ROGER A 1751 BROWN STREET AKRON OH 44301
ML157 10216139093 AL-HASSANI RAAD 7844 KENDAL DEARBORN MI 48126
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10216133080 95,500.00 95,425.93 12/1/96 11/1/26 12.500 12.500 18.500 9.250
10216134738 101,872.00 101,872.00 3/1/97 2/1/27 12.500 11.500 18.500 7.500
10216134942 135,800.00 135,612.52 2/1/97 1/1/27 9.875 8.875 15.875 5.000
10216135052 111,000.00 111,000.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216135773 50,150.00 50,150.00 3/1/97 2/1/27 11.000 10.000 17.000 6.500
10216135842 121,500.00 121,444.80 3/1/97 2/1/27 9.875 8.875 15.875 5.000
10216136183 100,000.00 100,000.00 3/1/97 2/1/27 10.750 9.750 16.750 7.000
10216136195 70,700.00 70,700.00 3/1/97 2/1/27 12.500 11.500 18.500 7.500
10216136317 54,000.00 53,980.75 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10216136407 153,000.00 153,000.00 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10216136416 89,200.00 89,151.28 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216136427 140,000.00 140,000.00 3/1/97 2/1/27 12.000 11.000 18.000 7.250
10216136751 70,100.00 70,049.77 2/1/97 1/1/27 11.000 10.000 17.000 6.000
10216136783 124,200.00 124,200.00 3/1/97 2/1/27 9.750 8.750 15.750 6.750
10216136787 62,400.00 62,400.00 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216136878 90,000.00 90,000.00 3/1/97 2/1/27 10.000 9.000 16.000 5.500
10216136890 35,000.00 34,942.21 2/1/97 1/1/27 9.000 8.000 15.000 4.500
10216136892 108,700.00 108,700.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216136981 76,000.00 75,956.28 3/1/97 2/1/27 8.750 7.750 14.750 4.500
10216137135 28,000.00 27,983.44 1/1/97 12/1/26 11.875 11.875 17.875 8.500
10216137281 67,600.00 67,600.00 3/1/97 2/1/27 10.000 9.000 16.000 5.500
10216137295 153,800.00 153,800.00 3/1/97 2/1/27 10.625 9.625 16.625 6.250
10216137308 40,000.00 40,000.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216137420 56,000.00 56,000.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216137469 64,600.00 64,571.42 3/1/97 2/1/27 10.000 9.000 16.000 5.500
10216137524 55,000.00 54,984.70 3/1/97 2/1/27 12.125 11.125 18.125 6.750
10216137533 36,000.00 36,000.00 3/1/97 2/1/27 11.500 11.500 17.500 7.500
10216137615 32,000.00 32,000.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216137759 60,000.00 59,968.75 2/1/97 1/1/27 9.375 8.375 15.375 5.000
10216137811 36,800.00 36,800.00 3/1/97 2/1/27 12.500 11.500 18.500 7.500
10216137908 51,200.00 51,070.15 1/1/97 12/1/26 10.250 9.250 16.250 5.750
10216137921 37,800.00 37,800.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216137994 85,000.00 84,949.82 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216138067 135,150.00 135,150.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216138144 140,000.00 140,000.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216138182 90,000.00 90,000.00 3/1/97 2/1/27 9.875 8.875 15.875 5.000
10216138283 132,600.00 132,600.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216138299 272,000.00 272,000.00 3/1/97 2/1/27 10.875 10.875 16.875 7.500
10216138305 80,000.00 80,000.00 3/1/97 2/1/27 9.375 8.375 15.375 5.000
10216138372 128,000.00 128,000.00 3/1/97 2/1/27 11.375 10.375 17.375 7.000
10216138394 136,000.00 136,000.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216138462 92,000.00 92,000.00 3/1/97 2/1/27 8.375 7.375 14.375 3.750
10216138486 55,000.00 54,976.31 3/1/97 2/1/27 10.125 9.125 16.125 5.750
10216138495 124,950.00 124,950.00 3/1/97 2/1/27 10.375 9.375 16.375 6.125
10216138525 165,000.00 164,941.17 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10216138533 86,200.00 86,165.74 3/1/97 2/1/27 10.500 9.500 16.500 5.750
10216138672 225,000.00 224,897.78 2/1/97 1/1/27 9.875 8.875 15.875 5.000
10216138673 41,300.00 41,300.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216138775 140,200.00 140,200.00 3/1/97 2/1/27 10.375 10.375 16.375 6.750
10216138781 120,000.00 120,000.00 3/1/97 2/1/27 12.000 11.000 18.000 7.250
10216138789 56,300.00 56,300.00 4/1/97 3/1/27 8.625 7.625 14.625 3.750
10216138805 124,200.00 124,200.00 3/1/97 2/1/27 11.000 10.000 17.000 6.750
10216138813 202,500.00 202,500.00 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216138814 88,000.00 88,000.00 3/1/97 2/1/27 11.375 10.375 17.375 7.000
10216138833 170,850.00 170,850.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216138910 119,850.00 119,850.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216138942 127,500.00 127,500.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216139058 43,200.00 43,200.00 3/1/97 2/1/27 11.000 10.000 17.000 6.750
10216139063 275,000.00 275,000.00 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216139078 54,000.00 54,000.00 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10216139093 48,000.00 48,000.00 3/1/97 2/1/27 8.625 8.625 14.625 5.000
</TABLE>
<PAGE>
Alliance Funding Company Page 9 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
ML157 10216139185 LOPEZ ISABEL Q 5113 SOUTH GURENE DRIVE SALT LAKE CITY UT 84117
ML157 10216139236 CLARK RANDALL H 1830 KESSLER BLVD SOUTH BEND IN 46616
ML157 10216139297 DYRESON JAMES A 37305 33RD AVENUE SOUTH AUBURN WA 98001
ML157 10216139312 BURNS RONALD 15711 SOUTH TURLINGTON AVENUE HARVEY IL 60426
ML157 10216139446 DICKSON MARK L 2549 WEST GUNLOCK DRIVE TAYLORSVILLE UT 84118
ML157 10216139534 BOYD FRED L 3456 HARRISON STREET DENVER CO 80205
ML157 10216139592 REHM RICHARD M 11S464 DOWNERS DRIVE LEMONT IL 60439
ML157 10216139619 PARK GREG R 12062 HERON RIDGE CIRCLE DRAPER UT 84020
ML157 10216139628 TIBLJAS GARY W 450 MERIDIAN LAKE DRIVE CRESTED BUTTE CO 81224
ML157 10216139815 HOLLIS WILLIAM 2615 76TH AVENUE ELMWOOD PARK IL 60707
ML157 10216139822 CLARK QUEEN H 1728 BRIDLE POST DRIVE #5D AURORA IL 60506
ML157 10216139912 CAULEY M CAD 7431 SOUTH EASTBOURNE CIRCLE SALT LAKE CITY UT 84121
ML157 10216139933 DODGE LORI L 1109 ROSE STREET CRAIG CO 81625
ML157 10216139947 HUIE KEVIN W 13900 CITATION DRIVE ORLAND PARK IL 60462
ML157 10216139983 EVANS JAMES A 7969 SOUTH 3620 WEST WEST JORDAN UT 84088
ML157 10216139986 FRIEDMAN ANDREW M 6807 SOUTH NORMANDY PLACE MIDVALE UT 84047
ML157 10216140069 HAVER JASON C 12824 DONETTE COURT ALBUQUERQUE NM 87112
ML157 10216140103 VINES RICK 5019 29TH AVENUE KENOSHA WI 53140
ML157 10216140122 DARDEN ERIC 5581 COURVILLE DETROIT MI 48224
ML157 10216140128 ROSS KENNETH F 779 HARRISON LINCOLN PARK MI 48146
ML157 10216140133 MCVAY LAWRENCE H 11210 109TH STREET SW TACOMA WA 98498
ML157 10216140167 CRANNEY WILLARD D 815 WEST 1110 SOUTH TOOELE UT 84074
ML157 10216140199 WILSON STEPHANIE 817 20TH AVE MAYWOOD IL 60153
ML157 10216140215 ELHORR ISSAM 7847 BINGHAM DEARBORN MI 48126
ML157 10216140299 BOLIG THOMAS 2112 S. HARVEY WESTLAND MI 48186
ML157 10216140316 GREER WILLIAM T 2315 WARWICK LANE COLORADO SPRINGS CO 80909
ML157 10216140403 DUNCAN ROBERT L 1642 NORTH CENTER STREET MESA AZ 85201
ML157 10216140447 CRUM DAVID J 2328 DEAN LAKE AVENUE NE GRAND RAPIDS MI 49505
ML157 10216140516 MALONE MICHAEL J 10111 BRAEBURN ROAD BARRINGTON HILLS IL 60010
ML157 10216140522 ISHO MAHER 24436 CURIE WARREN MI 48091
ML157 10216140597 SAFIE GEORGE 3437 LONE PINE WEST BLOOMFIELD MI 48323
ML157 10216140598 MILLER LEROY D 12055 13 MILE ROAD GREENVILLE MI 48838
ML157 10216140636 PENN DAVID 5 EDGCUMBE PLACE ST. PAUL MN 55116
ML157 10216140674 WILLIAMS L C 15933 S. PAULINA HARVEY IL 60426
ML157 10216140723 YUSRA RIDHA 6552 BARRIE DEARBORN MI 48126
ML157 10216140724 NASLUND JOSEPH 300 EASTWOOD DRIVE MEDFORD OR 97504
ML157 10216140823 LEE JAMES M 2232 SOUTH KIRKLAND AVENUE CHICAGO IL 60623
ML157 10216140836 RICHTER GLENN 1704 BANK STREET KALAMAZOO MI 49001
ML157 10216140904 EVANS THERESA G 731 WALNUT DRIVE EUCLID OH 44132
ML157 10216140972 TYLER WILLIAM F 1151 MAGNOLIA AVENUE EAST ST. PAUL MN 55106
ML157 10216140989 GEJDOS NINA Z 3014 HUNTINGTON ROAD SHAKER HEIGHTS OH 44120
ML157 10216141009 OLLIER GUY A 514 HODGE STREET NEWPORT KY 41071
ML157 10216141092 MORICZ TIMOTHY 5940 WEST 29TH AVENUE GARY IN 46406
ML157 10216141193 MEDRANO AGRIPINO M 1073 FOXWORTH BLVD LOMBARD IL 60148
ML157 10216141196 VERZO EDILBERTO V 300-303 NORTH CUYLER OAK PARK IL 60302
ML157 10216141212 MCHUGH SHAWN P 1216 S. ANDREWS STREET SHAWANO WI 54166
ML157 10216141215 AL-BAGHDADY ALI 7409 STAHELIN DETROIT MI 48228
ML157 10216141316 MILLS EILEEN M 30091 FAIRFAX SOUTHFIELD MI 48076
ML157 10216141374 MCGUIRE JULIETTE F 3260 WEST 63RD AVENUE DENVER CO 80221
ML157 10216141411 ADAMS JILL L 460-464 SOUTH CORONA STREET DENVER CO 80209
ML157 10216141451 WILLIAMS JAMES G 790 APPLEWOOD LANE ALGONQUIN IL 60102
ML157 10216141460 MALONE PATRICK J 114 CORNWALL CIRCLE S E POPLAR GROVE IL 61065
ML157 10216141506 GAPPA JOSEPH P 196 MARQUETTE STREET FOND DU LAC WI 54935
ML157 10216141513 MARSHALL JAMES E JR 1807 CARNELIAN LANE EAGAN MN 55122
ML157 10216141532 ZAHNOW LARRY D 1303 28TH AVENUE COURT MILTON WA 98354
ML157 10216141594 BUTLER JOHN Q 679 CALDER YPSILANTI MI 48198
ML157 10216141679 DERY BRADLEY P 349 E. CAMBOURNE FERNDALE MI 48222
ML157 10216141759 AL-RUBEY KAREEM J 6467 TERNES DEARBORN MI 48126
ML157 10216141798 MURRAY WILLIAM G 362 SOUTHWEST RIVER DRIVE DALLAS OR 97338
ML157 10216141802 CAMPBELL MICHAEL J 7986 INGALLS STREET ARVADA CO 80003
ML157 10216141829 COLUNGA LEAH L 721 EAST 840 NORTH OREM UT 84097
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10216139185 124,950.00 124,902.95 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216139236 87,200.00 87,200.00 3/1/97 2/1/27 12.000 11.000 18.000 7.250
10216139297 160,000.00 160,000.00 3/1/97 2/1/27 11.000 10.000 17.000 6.750
10216139312 30,100.00 30,100.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216139446 136,000.00 136,000.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216139534 46,800.00 46,800.00 3/1/97 2/1/27 12.000 11.000 18.000 6.750
10216139592 157,600.00 157,600.00 3/1/97 2/1/27 11.500 10.500 17.500 6.750
10216139619 160,500.00 160,500.00 3/1/97 2/1/27 8.750 7.750 14.750 4.500
10216139628 240,500.00 240,381.71 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216139815 52,100.00 52,075.69 3/1/97 2/1/27 9.750 9.750 15.750 6.000
10216139822 41,000.00 41,000.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216139912 135,500.00 135,500.00 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216139933 59,200.00 59,170.88 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216139947 131,000.00 131,000.00 4/1/97 3/1/27 11.000 10.000 17.000 6.000
10216139983 72,000.00 72,000.00 3/1/97 2/1/27 11.625 11.625 17.625 8.250
10216139986 143,650.00 143,595.86 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10216140069 97,325.00 97,325.00 3/1/97 2/1/27 8.375 7.375 14.375 3.750
10216140103 56,900.00 56,900.00 4/1/97 3/1/27 10.625 9.625 16.625 6.250
10216140122 55,900.00 55,884.44 3/1/97 2/1/27 12.125 11.125 18.125 6.750
10216140128 61,200.00 61,200.00 3/1/97 2/1/27 12.000 11.000 18.000 7.250
10216140133 124,950.00 124,950.00 4/1/97 3/1/27 10.875 9.875 16.875 6.250
10216140167 105,150.00 105,150.00 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216140199 77,300.00 77,300.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216140215 100,000.00 99,945.38 2/1/97 1/1/27 9.000 8.000 15.000 4.500
10216140299 58,600.00 58,600.00 3/1/97 2/1/27 10.875 9.875 16.875 7.250
10216140316 107,200.00 107,200.00 3/1/97 2/1/27 9.500 8.500 15.500 5.250
10216140403 255,000.00 255,000.00 3/1/97 2/1/27 9.250 8.250 15.250 5.000
10216140447 65,000.00 65,000.00 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10216140516 475,000.00 475,000.00 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216140522 83,000.00 82,948.44 2/1/97 1/1/27 9.375 9.375 15.375 5.750
10216140597 224,000.00 224,000.00 3/1/97 2/1/27 10.000 9.000 16.000 5.750
10216140598 89,600.00 89,600.00 3/1/97 2/1/27 10.500 9.500 16.500 5.750
10216140636 330,700.00 330,700.00 3/1/97 2/1/27 8.875 8.875 14.875 5.250
10216140674 53,600.00 53,600.00 3/1/97 2/1/27 12.000 11.000 18.000 7.500
10216140723 70,200.00 70,200.00 3/1/97 2/1/27 9.375 9.375 15.375 5.750
10216140724 120,000.00 120,000.00 3/1/97 2/1/27 10.500 9.500 16.500 6.000
10216140823 74,400.00 74,400.00 3/1/97 2/1/27 11.250 11.250 17.250 7.500
10216140836 40,800.00 40,786.50 3/1/97 2/1/27 12.250 11.250 18.250 7.500
10216140904 73,500.00 73,500.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216140972 38,000.00 37,977.57 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216140989 84,500.00 84,500.00 3/1/97 2/1/27 12.250 11.250 18.250 6.750
10216141009 32,400.00 32,400.00 3/1/97 2/1/27 9.375 9.375 15.375 5.750
10216141092 36,000.00 36,000.00 3/1/97 2/1/27 12.500 11.500 18.500 7.500
10216141193 136,000.00 136,000.00 4/1/97 3/1/27 9.875 8.875 15.875 5.000
10216141196 365,400.00 365,400.00 4/1/97 3/1/27 9.375 8.375 15.375 5.000
10216141212 46,800.00 46,800.00 3/1/97 2/1/27 9.750 9.750 15.750 6.000
10216141215 33,200.00 33,200.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216141316 79,900.00 79,900.00 4/1/97 3/1/27 11.000 10.000 17.000 6.750
10216141374 155,800.00 155,800.00 4/1/97 3/1/27 10.125 10.125 16.125 6.500
10216141411 202,300.00 202,300.00 4/1/97 3/1/27 10.500 9.500 16.500 6.000
10216141451 132,300.00 132,300.00 3/1/97 2/1/27 8.625 8.625 14.625 5.000
10216141460 100,800.00 100,755.41 3/1/97 2/1/27 10.000 9.000 16.000 6.500
10216141506 59,200.00 59,200.00 4/1/97 3/1/27 8.875 7.875 14.875 3.750
10216141513 99,200.00 99,163.69 3/1/97 2/1/27 10.880 10.880 16.880 8.500
10216141532 460,000.00 460,000.00 4/1/97 3/1/27 10.750 9.750 16.750 6.250
10216141594 34,800.00 34,800.00 3/1/97 2/1/27 8.875 8.875 14.875 5.000
10216141679 49,000.00 49,000.00 4/1/97 3/1/27 11.250 10.250 17.250 6.000
10216141759 63,000.00 63,000.00 3/1/97 2/1/27 9.375 9.375 15.375 5.750
10216141798 108,500.00 108,500.00 3/1/97 2/1/27 10.750 9.750 16.750 6.250
10216141802 106,250.00 106,250.00 4/1/97 3/1/27 10.125 10.125 16.125 6.500
10216141829 45,000.00 45,000.00 4/1/97 3/1/27 9.375 8.375 15.375 4.750
</TABLE>
<PAGE>
Alliance Funding Company Page 10 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
ML157 10216141842 MORGAN RALPH A 8793 PINCKNEY ROAD PINCKNEY MI 48169
ML157 10216141861 STOYKE DONALD J RT. 2 PINE TREE LANE STURGEON LAKE MN 55783
ML157 10216141873 LUXTON SARI 1543 WYOMING AVENUE FLINT MI 48506
ML157 10216141894 NEHME NADA 5917 ARYGLE DEARBORN MI 48126
ML157 10216142015 MILLER JERRY F 762 N BERMUDA STREET MESA AZ 85205
ML157 10216142027 CHRISTIANSEN LEE D 2095 EAST RAINBOW POINT DRIVE SALT LAKE CITY UT 84124
ML157 10216142044 OWEN SCOTT G 8751 SOUTH PEBBLECREST WAY WEST JORDAN UT 84088
ML157 10216142214 NEUBECK III WILLIAM H 1350 EAST PURDUE AVENUE PHOENIX AZ 85020
ML157 10216142263 CHARLES MICHAEL ST 1236 RUE DEAUVILLE YPSILANTI MI 48197
ML157 10216142271 AL-JABERY HAIDER 5636 ARGYLE DEARBORN MI 48126
ML157 10216142385 OSWALT TODD A 1191 EAST CHANDLER BOULEVARD CHANDLER AZ 85225
ML157 10216142544 DBOUK NAJLA ALI 6222 SCHAEFER ROAD DEARBORN MI 48126
ML157 10216142918 ISAAM JISHI 714 ARDMORE STREET DEARBORN HEIGHTS MI 48127
---------- ----------
135 Sale Total
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10216141842 109,200.00 109,200.00 4/1/97 3/1/27 9.250 8.250 15.250 4.500
10216141861 70,000.00 70,000.00 3/1/97 2/1/27 11.250 11.250 17.250 7.250
10216141873 10,500.00 10,500.00 4/1/97 3/1/27 10.000 10.000 16.000 6.000
10216141894 65,000.00 65,000.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216142015 144,000.00 144,000.00 4/1/97 3/1/27 10.250 9.250 16.250 5.750
10216142027 164,000.00 164,000.00 4/1/97 3/1/27 9.750 8.750 15.750 5.250
10216142044 111,192.00 111,192.00 4/1/97 3/1/27 10.875 10.875 16.875 7.250
10216142214 65,100.00 65,100.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216142263 100,400.00 100,372.83 3/1/97 2/1/27 12.250 11.250 18.250 7.250
10216142271 104,800.00 104,800.00 3/1/97 2/1/27 9.250 8.250 15.250 4.500
10216142385 108,000.00 108,000.00 3/1/97 2/1/27 9.875 9.875 15.875 6.250
10216142544 50,000.00 50,000.00 4/1/97 3/1/27 9.250 8.250 15.250 4.500
10216142918 135,100.00 135,100.00 4/1/97 3/1/27 9.250 8.250 15.250 4.500
------------- ------------- ------ ----- ------ ------
14,348,789.00 14,347,223.17 10.148 9.307 16.148 5.773
</TABLE>
<PAGE>
Alliance Funding Company Page 11 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
MLC158 10218000142 HARDY ROBERT C 658 SAINT MARKS AVE BROOKLYN NY 11216
MLC158 10218000191 CLAYTON WINZLE JR 15 HIGH POINT DR SPRINGFIELD NJ 07081
MLC158 10218000711 HEIM JOSEPH W 489 ROUTE 94 NEWTON NJ 07860
MLC158 10218001085 BRENT ETTA DIXON 101 TOMPKINS CIRCLE STATEN ISLAND NY 10301
MLC158 10218001525 RODRIGUEZ LYDIA 19 KELLEE DR NORWALK CT 06854
MLC158 10218002437 CRESPO DIANE 7 FLOWER CITY PARK ROCHESTER NY 14615
MLC158 10218002589 TRUBEY JOYCE OLIVIA 717 CLOVER AVE BALTIMORE MD 21221
MLC158 10218003110 NAYCI ZEKERIYA 13 LOCUST ST NESCONSET NY 11767
MLC158 10218003168 LOBBAN ROBERT J 49 RIPPLEWOOD DR UPPER SADDLE RIVER NJ 07458
MLC158 10218003186 RODRIGUEZ JOSEPH F 3243 FAR REACH DR BALDWINSVILLE NY 13027
MLC158 10218003208 SAWYERS THOMAS R 742 ROSEDALE AVE BRONX NY 10473
MLC158 10218003210 LAMPITELLI JOHN 20 PHILIP AVE STATEN ISLAND NY 10312
MLC158 10218003387 ROHN KENNETH S 222 SAINT CHARLES ST JOHNSON CITY NY 13790
MLC158 10218003457 MARKOWITZ JOEL M 7 CLAFFORD LANE MELVILLE NY 11747
MLC158 10218003482 BESSO RONALD J 117 RED OAK TRL CHESAPEAKE VA 23320
MLC158 10218003546 HENRY ALFRED L 3514 LARKWAY ST TALLAHASSEE FL 32310
MLC158 10218003583 GOMES GABRIEL 81-12 PETTIT AVENUE ELMHURST NY 11373
MLC158 10218003667 DELGALDO CARMINE 25 CARREAU AVE STATEN ISLAND NY 10314
MLC158 10218003724 CAMARADA ANTHONY 735 RAMONA AVE STATEN ISLAND NY 10309
MLC158 10218003752 BRAIM MARY 21 EAST RAYMOND AVENUE ROOSEVELT NY 11575
MLC158 10218003773 LY SARY 8 BROOKVIEW LN MIDDLETOWN CT 06457
MLC158 10218003841 FORSEY GEORGE A 57 PEARL ST CLINTON CT 06413
MLC158 10218003908 ROCCO ANTHONY 136 DOVER GRN STATEN ISLAND NY 10312
MLC158 10218004216 SANSEVERINO DENNIS 15 HAMILTON CT NORTH HAVEN CT 06473
MLC158 10218004222 JUSTE PIERRE 824 ALLEN ST LINDEN NJ 07036
MLC158 10218004235 WALSH MARY B 34 BLISH PL DUMONT NJ 07628
MLC158 10218004364 MCGOVERN WILLIAM T 409 BAY COLONY DRIVE DAGSBORO DE 19939
MLC158 10218004411 CAFORA LOUISE T 42 44 CHARRON ST BRIDGEPORT CT 06606
MLC158 10218004470 GAGLIARDI STEVEN 32 OLD FARM RD BERKELEY HEIGHTS NJ 07922
MLC158 10218004517 BONNET XIOMARA 10821 ROOSEVELT AVE CORONA NY 11368
MLC158 10218004524 EDO ROBERT J 51 EASTFIELD DR FAIRFIELD CT 06432
MLC158 10218004584 WALSH MICHAEL J 64 CRESTWOOD DR GLEN ROCK NJ 07452
MLC158 10218004585 SULLIVAN BRIAN K 2 -26 31ST ST FAIR LAWN NJ 07410
MLC158 10218004716 BRYANT SHARON 404 CHAUNCEY STEET BROOKLYN NY 11207
MLC158 10218004776 MAHER JOHN 247 LAKELAND AVE SAYVILLE NY 11782
MLC158 10218004866 LIRIANO CHRISTIAN 97 TREADWELL AVE STATEN ISLAND NY 10302
MLC158 10218005013 FIORENTINO ROSEMARIE 124 CARROLL ST BROOKLYN NY 11231
MLC158 10218005043 ARVANITAKIS DENISE 505 STUDIO RD RIDGEFIELD NJ 07657
MLC158 10218005048 TRIANTAFELOW JOHN R 795 BRIARSTONE RD BETHLEHEM PA 18017
MLC158 10218005086 ZIBA SHPENDIM 111 VINCENT ST WAYNE NJ 07470
MLC158 10218005173 LARSON JOHN M 26 SPRUCE ST POMPTON LAKES NJ 07442
MLC158 10218005240 LAPP SHIRLEY N 149 RESERVOIR ROAD STRASBURG PA 17579
MLC158 10218005285 ATKINS LLOYD E 8900 DEEP RIVER ROAD SANFORD NC 27330
MLC158 10218005296 GILGORE ROBERT J 508 HARRISON ST POTTSVILLE PA 17901
MLC158 10218005458 CHAVEZ JEAN 2913 LURTING AVE BRONX NY 10469
MLC158 10218005475 BOYER VICTOR L 5 GREENWOOD DRIVE BORDENTOWN NJ 08505
MLC158 10218005478 SANCHO KATHLEEN 2310 NEWKIRK AVE BROOKLYN NY 11226
MLC158 10218005511 LEE MICHAEL H 2491 78TH AVENUE PHILADELPHIA PA 19150
MLC158 10218005512 TAYLOR EDWARD 18 2ND AVE CENTRAL ISLIP NY 11722
MLC158 10218005542 SCORZETTI WILLIAM D 652 PHEASANT LANE TOBYHANNA PA 18466
MLC158 10218005574 PEARS JEFFREY L 3650 NORTH CAMAC STREET PHILADELPHIA PA 19140
MLC158 10218005651 KALAMARAS PETER T 412 NEW MARKET RD DUNELLEN NJ 08812
MLC158 10218005677 CASTELLANO GERALDINE 1938 85TH ST BROOKLYN NY 11214
MLC158 10218005684 SULLIVAN JOHN B 49-55 164TH STREET FLUSHING NY 11365
MLC158 10218005697 JOHNSON L.C. 330-332 11TH AVE PATERSON NJ 07514
MLC158 10218005703 BACHINSKI JEFFERSON P 103 W CATAWISSA ST NESQUEHONING PA 18240
MLC158 10218005728 SIMONDS MICHAEL 2 PARK CIR MILFORD CT 06460
MLC158 10218005767 VERMEYCHUK DANIEL 2488 1ST AVE AVALON NJ 08202
MLC158 10218005870 NEPTUNE CARL 11 MIRIJO RD DANBURY CT 06811
MLC158 10218005880 LYONS STEPHEN N 1750 SKIPPACK PIKE APT 106 CENTER SQUARE PA 19422
MLC158 10218005977 FILANCIA PETER A 1690 THE OAKS BLVD KISSIMMEE FL 34746
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10218000142 173,400.00 173,058.66 10/1/96 9/1/26 10.625 10.625 16.625 6.750
10218000191 200,000.00 199,754.47 11/1/96 10/1/26 11.750 11.750 17.750 7.500
10218000711 203,000.00 202,562.95 11/1/96 10/1/26 9.125 9.125 15.125 5.000
10218001085 157,720.00 157,587.82 1/1/97 12/1/26 10.250 10.250 16.250 6.625
10218001525 174,250.00 174,107.11 1/1/97 12/1/26 10.375 10.375 16.375 7.500
10218002437 20,000.00 19,988.81 1/1/97 2/1/26 12.125 12.125 18.125 7.750
10218002589 110,500.00 110,500.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10218003110 131,400.00 131,400.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10218003168 100,000.00 100,000.00 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10218003186 91,000.00 91,000.00 3/1/97 2/1/27 11.000 10.000 17.000 7.000
10218003208 146,150.00 146,150.00 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10218003210 100,000.00 100,000.00 3/1/97 2/1/27 10.375 9.375 16.375 6.125
10218003387 30,000.00 29,986.73 2/1/97 1/1/27 10.000 10.000 16.000 6.000
10218003457 195,000.00 194,920.40 3/1/97 2/1/27 10.375 9.375 16.375 6.250
10218003482 93,675.00 93,675.00 3/1/97 2/1/27 9.375 8.375 15.375 6.000
10218003546 72,000.00 72,000.00 3/1/97 2/1/27 10.250 9.250 16.250 6.750
10218003583 263,500.00 263,500.00 3/1/97 2/1/27 10.100 9.100 16.100 5.850
10218003667 159,000.00 158,917.58 3/1/97 2/1/27 9.250 8.250 15.250 4.625
10218003724 81,000.00 81,000.00 3/1/97 2/1/27 10.250 9.250 16.250 5.875
10218003752 106,250.00 106,250.00 3/1/97 2/1/27 11.625 10.625 17.625 7.250
10218003773 121,600.00 121,528.21 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10218003841 108,000.00 107,960.43 2/1/97 1/1/27 10.875 9.875 16.875 6.625
10218003908 141,750.00 141,707.13 2/1/97 1/1/27 11.750 10.750 17.750 7.000
10218004216 200,000.00 199,544.51 2/1/97 1/1/27 10.625 9.625 16.625 6.000
10218004222 83,300.00 83,300.00 3/1/97 2/1/27 12.625 11.625 18.625 8.250
10218004235 100,000.00 99,959.17 3/1/97 2/1/27 10.375 10.375 16.375 7.000
10218004364 122,400.00 122,400.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10218004411 72,000.00 71,940.97 2/1/97 1/1/27 10.375 10.375 16.375 7.000
10218004470 174,000.00 174,000.00 3/1/97 2/1/27 10.000 9.000 16.000 5.500
10218004517 139,500.00 139,500.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10218004524 184,000.00 184,000.00 3/1/97 2/1/27 12.125 11.125 18.125 8.250
10218004584 207,000.00 206,820.93 2/1/97 1/1/27 10.125 10.125 16.125 6.750
10218004585 157,250.00 157,250.00 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10218004716 140,250.00 140,250.00 3/1/97 2/1/27 11.875 10.875 17.875 7.500
10218004776 76,900.00 76,880.32 3/1/97 2/1/27 12.500 11.500 18.500 7.500
10218004866 80,800.00 80,800.00 3/1/97 2/1/27 11.250 11.250 17.250 7.250
10218005013 240,000.00 240,000.00 3/1/97 2/1/27 11.625 11.625 17.625 7.750
10218005043 385,000.00 385,000.00 3/1/97 2/1/27 11.875 11.875 17.875 8.500
10218005048 73,500.00 73,463.85 3/1/97 2/1/27 9.500 8.500 15.500 6.250
10218005086 125,000.00 125,000.00 3/1/97 2/1/27 12.250 11.250 18.250 7.500
10218005173 106,000.00 105,957.88 3/1/97 2/1/27 10.500 9.500 16.500 7.000
10218005240 115,000.00 115,000.00 3/1/97 2/1/27 10.500 9.500 16.500 5.750
10218005285 138,400.00 138,400.00 3/1/97 2/1/27 9.000 8.000 15.000 5.750
10218005296 28,800.00 28,800.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10218005458 176,400.00 176,337.10 3/1/97 2/1/27 11.000 10.000 17.000 6.750
10218005475 65,000.00 64,962.61 3/1/97 2/1/27 8.750 7.750 14.750 4.500
10218005478 160,000.00 160,000.00 3/1/97 2/1/27 12.125 11.125 18.125 8.250
10218005511 52,000.00 52,000.00 3/1/97 2/1/27 11.500 10.500 17.500 7.000
10218005512 56,000.00 56,000.00 3/1/97 2/1/27 10.750 9.750 16.750 6.000
10218005542 36,000.00 35,660.56 3/1/97 2/1/27 10.875 9.875 16.875 6.750
10218005574 26,350.00 26,350.00 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10218005651 143,200.00 143,152.97 2/1/97 1/1/27 11.375 11.375 17.375 7.500
10218005677 148,500.00 148,368.07 2/1/97 1/1/27 10.000 10.000 16.000 6.625
10218005684 177,225.00 177,225.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10218005697 136,000.00 136,000.00 3/1/97 2/1/27 10.875 10.875 16.875 7.500
10218005703 23,920.00 23,920.00 3/1/97 2/1/27 12.500 11.500 18.500 7.500
10218005728 127,950.00 127,903.12 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10218005767 180,000.00 179,826.85 1/1/97 12/1/26 9.625 9.625 15.625 6.250
10218005870 142,800.00 142,676.47 1/1/97 12/1/26 10.125 10.125 16.125 7.750
10218005880 71,600.00 71,563.15 1/1/97 12/1/26 12.500 11.500 18.500 8.500
10218005977 162,314.00 162,314.00 3/1/97 2/1/27 10.625 9.625 16.625 6.250
</TABLE>
<PAGE>
Alliance Funding Company Page 12 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
MLC158 10218006020 PATTISON LORENA D 134 TAYLORSTOWN RIDGE ROAD CLAYSVILLE PA 15323
MLC158 10218006079 SHIWKARAN MANGALBAI 56 JEFFERSON AVE JERSEY CITY NJ 07306
MLC158 10218006083 CARR MICHAEL PATRICK SR 1102 BANCROFT LANE YARDLEY PA 19067
MLC158 10218006087 PHANORD FLAUBERT 347 NEWPORT RD UNIONDALE NY 11553
MLC158 10218006118 GIONFRIDDO BRIAN A 213 BLUEBIRD DR NAUGATUCK CT 06770
MLC158 10218006128 GARLASCO LAWRENCE C 667 BRUCE DR PARAMUS NJ 07652
MLC158 10218006130 SUCENA REGINALDO 46 OAKLEY AVE MOUNT VERNON NY 10550
MLC158 10218006188 PARKER OTIS L 10 WARMAN ST MONTCLAIR NJ 07042
MLC158 10218006259 MOSELEY LINDA 2761 LENNOX PLACE YORK PA 17404
MLC158 10218006266 ZAGLOOL MOHAMMED M 7057 AUGUSTA BOULEVARD SEMINOLE FL 34636
MLC158 10218006282 MERCURO JAMES 39 ADELPHI RD S TOMS RIVER NJ 08757
MLC158 10218006319 DIAMOND DEBORAH 20 BRADY ST WEST MILFORD NJ 07480
MLC158 10218006330 GLAEWKETGARN DUANGJAI 415 DREXEL PLACE SWARTHMORE PA 19081
MLC158 10218006350 RAMKHELAWAN RAAMPIET 3201 59TH WAY N SAINT PETERSBURG FL 33710
MLC158 10218006356 PEREIRA ANTHONY STOKES 24 MONTGOMERY AVENUE ELMSFORD NY 10523
MLC158 10218006374 DITTRICH JOHN N JR 9501 STENTON AVE GLENSIDE PA 19038
MLC158 10218006394 DESANTIS ANTHONY R 12 CHICKASAW DRIVE POCONO LAKE PA 18466
MLC158 10218006452 GARCIA LUIS L 99 GARSIDE AVE WAYNE NJ 07470
MLC158 10218006465 HUSSEY CLAUDIA 2293 BELMAR DRIVE BELLEAIR BLUFFS FL 34613
MLC158 10218006469 ZISA ALDO 996 PINES TER FRANKLIN LAKES NJ 07417
MLC158 10218006479 WOOTERS-DICICCO SANDRA 2201 BUCK RUB DR NOTTINGHAM PA 19362
MLC158 10218006543 ZITO ROBERT 1249 66TH ST BROOKLYN NY 11219
MLC158 10218006545 GARVIN GEORGE F 369 HILLIARD DR FAYETTEVILLE NC 28311
MLC158 10218006552 MAZA SANDRO E 50 FOSTER TRACE DRIVE LAWRENCEVILLE GA 30243
MLC158 10218006561 MAKDIS GEORGE 689 BERGEN AVE JERSEY CITY NJ 07304
MLC158 10218006587 DALFERES DUFFEL JR 1706 CROMPOND RD PEEKSKILL NY 10566
MLC158 10218006623 RAMSEY FRED 115 MORGAN ST BRACKENRIDGE PA 15014
MLC158 10218006625 LOVETERE THOMAS 10 LAURIE CT STATEN ISLAND NY 10304
MLC158 10218006648 NORTON BRENDA L 1765 MORNING DOVE LANE ENGLEWOOD FL 34224
MLC158 10218006655 SMITH WARREN 568 NORTH COURTLAND STREET EAST STROUDSBURG PA 18301
MLC158 10218006672 ONEILL SUSAN 221 EMMANS RD FLANDERS NJ 07836
MLC158 10218006683 BOHNET MICHAEL C II 701 MIRROR LAKE DR NORTH UNIT ST PETERSBURG FL 33702
MLC158 10218006697 CALDERON JAIRO 36 FERRIS AVE NORWALK CT 06854
MLC158 10218006698 PECORINO JOSEPH 21 NORTH HOLLOWBROOK LANE CORTLANDT MANOR NY 10566
MLC158 10218006731 BOWEN VINCENT R JR 3672 OLD PHILADELPHIA PIKE BETHLEHEM PA 18015
MLC158 10218006863 RYAN EILEEN A 542 WINDING WAY WARMINSTER PA 18974
MLC158 10218006884 ZIMMERMAN STEPHEN A 1240 ROUTE 271 S LIGONIER PA 15658
MLC158 10218006885 FRANCO JORGE 136-30 64TH ROAD FLUSHING NY 11367
MLC158 10218006895 MANSPERGER CYRIL H 14 MAIN ST COLD SPRING NY 10516
MLC158 10218006897 DILEO MARIA G 239 RICH AVE MOUNT VERNON NY 10552
MLC158 10218006915 HADDAD ALY EL 394 CARHART CT EAST BRUNSWICK NJ 08816
MLC158 10218006951 WELSH ROANLD L 9156 CAPITAL HILL ROAD WAYNESBORO PA 17268
MLC158 10218006996 MCGORRY ROBERT B 538 SAW MILL RIVER RD MILLWOOD NY 10546
MLC158 10218006997 LAVOIE SUSAN M 404 1ST AVENUE SE LUTZ FL 33549
MLC158 10218007022 GOMES BRIAN 7231 FAIR OAKS STREET SPRING HILL FL 34606
MLC158 10218007034 GUILFORD ARTHUR M 115 8TH AVE N SAINT PETERSBURG FL 33701
MLC158 10218007072 SHEEHAN CATHLEEN N 5505 HUNTINGWOOD DRIVE RALEIGH NC 27606
MLC158 10218007096 HART MICHAEL 134 POPES ISLAND ROAD MILFORD CT 06460
MLC158 10218007148 SKLAR HERBERT 65 CHESTNUT ST LIBERTY NY 12754
MLC158 10218007220 CUTLER DIANE P 4 WALKER LN BLOOMFIELD CT 06002
MLC158 10218007224 DINARDO SALVATORE 117 HASTINGS ROAD BRIDGEPORT CT 06606
MLC158 10218007226 PERRITANO RALPH A 165 OSCAWANA HEIGHTS RD PUTNAM VALLEY NY 10579
MLC158 10218007230 RUBENIC ECKAHARD K 1121 WOODRIDGE DR MIDDLETOWN PA 17057
MLC158 10218007342 WHALE GREGORY E SR 50 BLACK WALNUT DRIVE ETTERS PA 17319
MLC158 10218007346 SMITH MICHAEL 1927 BARNES AVENUE BRONX NY 10462
MLC158 10218007357 PETERS STEPHEN C 82 BALDWIN HILL RD WASHINGTON DEPOT CT 06793
MLC158 10218007396 HUNSICKER DEBORAH A 1156 OYSTER MILL ROAD CAMP HILL PA 17011
MLC158 10218007400 DAVIS LLOYD 99 UTICA AVENUE BROOKLYN NY 11213
MLC158 10218007403 COURTNEY SANDRA B 1602 BERGEN STREET BROOKLYN NY 11233
MLC158 10218007466 OGDEN JAMES C 218 N ELDON STREET COLUMBUS OH 43204
MLC158 10218007490 MUDLOCK JAMES K 8 MAIN ST LAFLIN PA 18702
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10218006020 136,000.00 136,000.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10218006079 61,200.00 61,200.00 3/1/97 2/1/27 10.750 9.750 16.750 7.500
10218006083 208,840.00 208,786.56 2/1/97 1/1/27 12.500 11.500 18.500 7.500
10218006087 99,450.00 98,455.70 3/1/97 2/1/27 11.625 10.625 17.625 7.250
10218006118 100,000.00 100,000.00 3/1/97 2/1/27 11.500 10.500 17.500 7.500
10218006128 254,000.00 254,000.00 3/1/97 2/1/27 9.625 9.625 15.625 6.250
10218006130 175,500.00 175,440.75 3/1/97 2/1/27 11.250 10.250 17.250 6.750
10218006188 150,000.00 150,000.00 3/1/97 2/1/27 10.375 9.375 16.375 6.000
10218006259 102,000.00 102,000.00 3/1/97 2/1/27 8.750 7.750 14.750 4.500
10218006266 140,250.00 140,250.00 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10218006282 52,000.00 52,000.00 3/1/97 2/1/27 12.125 11.125 18.125 6.750
10218006319 98,400.00 98,352.86 3/1/97 2/1/27 9.625 9.625 15.625 6.250
10218006330 168,000.00 167,897.88 1/1/97 12/1/26 11.750 10.750 17.750 7.000
10218006350 80,000.00 79,965.54 3/1/97 2/1/27 10.125 9.125 16.125 5.750
10218006356 180,000.00 179,947.05 2/1/97 1/1/27 11.875 11.875 17.875 8.500
10218006374 129,900.00 129,825.27 2/1/97 1/1/27 8.750 7.750 14.750 5.500
10218006394 37,800.00 37,800.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10218006452 210,000.00 210,000.00 3/1/97 2/1/27 11.375 11.375 17.375 8.000
10218006465 52,500.00 52,471.32 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10218006469 180,000.00 180,000.00 3/1/97 2/1/27 10.375 10.375 16.375 7.000
10218006479 110,800.00 110,800.00 3/1/97 2/1/27 11.500 10.500 17.500 6.750
10218006543 80,000.00 80,000.00 3/1/97 2/1/27 8.750 8.750 14.750 5.375
10218006545 117,300.00 117,300.00 3/1/97 2/1/27 8.750 7.750 14.750 4.500
10218006552 98,515.00 98,442.48 2/1/97 1/1/27 10.875 10.875 16.875 7.750
10218006561 58,500.00 58,500.00 3/1/97 2/1/27 8.375 7.375 14.375 4.750
10218006587 119,430.00 119,372.79 3/1/97 2/1/27 9.625 8.625 15.625 6.000
10218006623 60,000.00 60,000.00 3/1/97 2/1/27 11.500 10.500 17.500 7.000
10218006625 500,000.00 500,000.00 3/1/97 2/1/27 10.375 9.375 16.375 6.375
10218006648 83,700.00 83,700.00 3/1/97 2/1/27 10.625 9.625 16.625 6.250
10218006655 107,100.00 107,100.00 3/1/97 2/1/27 9.750 8.750 15.750 5.250
10218006672 176,500.00 176,423.98 2/1/97 1/1/27 10.125 10.125 16.125 6.750
10218006683 22,715.00 22,715.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10218006697 165,000.00 165,000.00 3/1/97 2/1/27 9.125 9.125 15.125 6.750
10218006698 114,300.00 114,300.00 3/1/97 2/1/27 9.875 8.875 15.875 6.000
10218006731 47,000.00 46,850.00 3/1/97 2/1/27 10.500 9.500 16.500 5.750
10218006863 81,640.00 81,640.00 3/1/97 2/1/27 10.500 9.500 16.500 5.500
10218006884 56,300.00 56,300.00 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10218006885 159,300.00 159,300.00 3/1/97 2/1/27 10.250 9.250 16.250 6.000
10218006895 225,000.00 225,000.00 3/1/97 2/1/27 9.625 8.625 15.625 6.000
10218006897 185,500.00 185,326.21 3/1/97 2/1/27 9.750 8.750 15.750 6.250
10218006915 44,800.00 44,800.00 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10218006951 42,500.00 42,500.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10218006996 188,500.00 188,500.00 3/1/97 2/1/27 11.750 10.750 17.750 7.000
10218006997 64,260.00 64,260.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10218007022 45,600.00 45,600.00 3/1/97 2/1/27 11.500 10.500 17.500 6.750
10218007034 54,000.00 53,975.47 3/1/97 2/1/27 9.875 8.875 15.875 5.000
10218007072 192,000.00 192,000.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10218007096 120,000.00 120,000.00 3/1/97 2/1/27 10.000 9.000 16.000 6.500
10218007148 50,000.00 50,000.00 3/1/97 2/1/27 9.250 9.250 15.250 5.875
10218007220 44,800.00 44,782.20 3/1/97 2/1/27 10.500 9.500 16.500 6.000
10218007224 35,000.00 35,000.00 3/1/97 2/1/27 9.750 8.750 15.750 5.250
10218007226 249,950.00 249,950.00 3/1/97 2/1/27 9.750 8.750 15.750 5.500
10218007230 171,980.00 171,875.81 2/1/97 1/1/27 8.500 7.500 14.500 5.500
10218007342 112,640.00 112,587.45 2/1/97 1/1/27 9.750 8.750 15.750 5.500
10218007346 85,000.00 84,974.29 3/1/97 2/1/27 11.750 10.750 17.750 7.000
10218007357 171,900.00 171,823.95 3/1/97 2/1/27 10.000 9.000 16.000 6.750
10218007396 78,000.00 77,812.39 3/1/97 2/1/27 9.750 8.750 15.750 5.250
10218007400 124,000.00 124,000.00 3/1/97 2/1/27 10.375 9.375 16.375 6.125
10218007403 106,250.00 106,250.00 3/1/97 2/1/27 11.875 10.875 17.875 7.625
10218007466 58,650.00 58,650.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10218007490 52,000.00 51,986.70 3/1/97 2/1/27 12.500 11.500 18.500 7.500
</TABLE>
<PAGE>
Alliance Funding Company Page 13 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
MLC158 10218007505 RICHIUSA MARIANNA 106 PERRY STREET KEYPORT NJ 07735
MLC158 10218007537 DAKA TUSH 462 BELLEVUE AVE YONKERS NY 10703
MLC158 10218007639 BAEZ MIGUEL A 113 AVENUE F LODI NJ 07644
MLC158 10218007650 MOLL HELGA 700 ROSETO AVE ROSETO PA 18013
MLC158 10218007661 GREENLEE DANIEL R 3749 ORCHARD HIGHLAND PALM HARBOR FL 34684
MLC158 10218007662 KELLY ROSE 463 CHAROLTTE AVENUE S WILLIAMSPORT PA 17701
MLC158 10218007674 MOORE RUSSELL 308 BOND ST ELIZABETH NJ 07206
MLC158 10218007675 GROFT WILLIAM J 101 LINCOLNWAY WEST NEW OXFORD PA 17350
MLC158 10218007689 SANTOS JOSE DE LOS 410-412 SIXTH AVENUE PATERSON NJ 07514
MLC158 10218007747 HUTCHINS LEONARD 143 HAMPTON GREEN STATEN ISLAND NY 10312
MLC158 10218007841 HAINES BRYAN R 2556 SWAMP CREEK RD GREEN LANE PA 18054
MLC158 10218007867 TATE SHELTON L 3606 OAK AVE BALTIMORE MD 21207
MLC158 10218007897 LALLY ISABEL 4050 HARPER AVE BRONX NY 10466
MLC158 10218007904 STUART SCOTT Y 28 SARATOGA DR JERICHO NY 11753
MLC158 10218007915 YUKA JOSEPH G 2003 WINDSOR TER SPRING LAKE NJ 07762
MLC158 10218007929 MCINTYRE DONALD J 197 PINECREST DR WATERBURY CT 06708
MLC158 10218007952 DESRRAVINE MARIA J 152 HOWE AVE PASSAIC NJ 07055
MLC158 10218007996 HELGESON CLYDE E 7313 1ST AVE N SAINT PETERSBURG FL 33710
MLC158 10218008121 BROWN ZIGMOND M 4921 BEAVER DAM ROAD BRISTOL PA 19007
----------- ----------
141 Sale Total
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10218007505 85,000.00 85,000.00 3/1/97 2/1/27 10.625 10.625 16.625 7.750
10218007537 138,000.00 138,000.00 3/1/97 2/1/27 9.875 9.875 15.875 6.500
10218007639 157,600.00 157,600.00 3/1/97 2/1/27 9.750 8.750 15.750 6.250
10218007650 48,000.00 48,000.00 3/1/97 2/1/27 8.375 7.375 14.375 3.750
10218007661 115,000.00 115,000.00 3/1/97 2/1/27 10.750 9.750 16.750 7.750
10218007662 63,000.00 63,000.00 3/1/97 2/1/27 9.875 8.875 15.875 5.000
10218007674 51,000.00 51,000.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10218007675 30,000.00 29,985.63 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10218007689 134,100.00 134,100.00 3/1/97 2/1/27 11.000 10.000 17.000 6.750
10218007747 100,000.00 99,958.07 3/1/97 2/1/27 10.250 10.250 16.250 6.875
10218007841 58,400.00 58,377.41 2/1/97 1/1/27 10.625 10.625 16.625 8.000
10218007867 76,000.00 75,976.17 3/1/97 2/1/27 11.750 10.750 17.750 7.000
10218007897 120,000.00 119,890.51 2/1/97 1/1/27 9.875 9.875 15.875 6.500
10218007904 371,450.00 371,450.00 3/1/97 2/1/27 8.875 8.875 14.875 5.500
10218007915 84,500.00 84,472.24 3/1/97 2/1/27 11.375 11.375 17.375 7.750
10218007929 100,000.00 100,000.00 3/1/97 2/1/27 9.875 8.875 15.875 6.000
10218007952 120,000.00 119,942.51 2/1/97 1/1/27 9.625 9.625 15.625 6.250
10218007996 59,500.00 59,500.00 3/1/97 2/1/27 9.875 9.875 15.875 5.250
10218008121 82,800.00 82,800.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
------------- ------------- ------ ------ ------ -----
17,084,174.00 17,077,927.02 10.425 9.742 16.425 6.430
</TABLE>
<PAGE>
Alliance Funding Company Page 14 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
MLC159 10218001337 FOURNIER ANN MARIE 14 RASBERRY LANE ELLINGTON CT 06029
MLC159 10218002829 GONZALEZ PETER 1217 91ST ST NORTH BERGEN NJ 07047
MLC159 10218004576 DENGLER PAUL M JR 2274 OLD YORK RD COLUMBUS NJ 08022
MLC159 10218004817 MCHUGH BERNARD J 44 LINCOLN ST WESTPORT CT 06880
MLC159 10218005020 EVERARD TIMOTHY J 758 WEST WESTCHESTER DRIVE CHARLESTON SC 29414
MLC159 10218006060 MCMANUS MARK B 210 MAIN ST BOONVILLE NY 13309
MLC159 10218006187 HULANICK RICHARD 315 DEAN CT KINGSTON PA 18704
MLC159 10218006526 CLAUSE FRANK A JR 165 ORVILLES ROAD WIND GAP PA 18091
MLC159 10218006656 TURNER NORMAN E 107 ROBIN ST SUMMERVILLE SC 29485
MLC159 10218007100 BROOK MARLENE M 122 COTTAGE AVENUE MOUNT VERNON NY 10550
MLC159 10218007549 BAKER R GERALD 601 B AVE WEST COLUMBIA SC 29169
MLC159 10218008140 GUNTER DALLAS 2116 BOXWOOD CIRCLE BRYANS ROAD MD 20616
MLC159 10218008151 EVERETT JOSEPH D 278 EUCLID AVE HACKENSACK NJ 07601
MLC159 10218008162 SNELLBAKER THEODORE J 151 JONES ST BELMONT HILLS PA 19004
MLC159 10218008214 BUCHER ROBERT L JR 5120 CIRCLE DR HARRISBURG PA 17112
MLC159 10218008225 WILES RONALD D 251 WINONA AVE WASHINGTON PA 15301
MLC159 10218008227 FIGHERA FRANK R JR 4217 BOONE ST PHILADELPHIA PA 19128
MLC159 10218008228 PRIDHAM ROANLD G 697 STONEGATE COURT WEST CHESTER PA 19380
MLC159 10218008262 BLANC JEANIE S 4750 MISTY LAKE CT KENNESAW GA 30144
MLC159 10218008328 REID CARLTON 155 11 115TH DRIVE JAMAICA NY 11434
MLC159 10218008347 FULLER LINDA 653 E 17TH ST BROOKLYN NY 11230
MLC159 10218008356 WIZNA BRYAN R 4 MYERS COURT BELLE MEAD NJ 08502
MLC159 10218008377 VELESKO DON 23 CATHERINE ST SOUTH GLENS FALLS NY 12803
MLC159 10218008405 SCALLION GERALD P JR 3702 N ARLINGTON AVE TAMPA FL 33603
MLC159 10218008407 LEONARDO RACHEL N 236 MCADOO AVE JERSEY CITY NJ 07305
MLC159 10218008421 RUNKLE KENNETH K RD 1 BOX 362 BOYD ROAD WRIGHTSVILLE PA 17368
MLC159 10218008447 GORDON DAHLIA 45 PINE ST STATEN ISLAND NY 10301
MLC159 10218008458 KENNEDY JAMES V 231 GREEN ST PITTSBURGH PA 15221
MLC159 10218008464 MCHALE JOANN 422 LEHIGH ST JIM THORPE PA 18229
MLC159 10218008489 WILLIAMS MARK J 307 MENDHAM ROAD MENDHAM NJ 07945
MLC159 10218008492 BROWN ROBERT B 1570 HIGHLAND AVENUE GETTYSBURG PA 17325
MLC159 10218008532 RIPPER MARY M 280 PINE RIDGE RD CHEEKTOWAGA NY 14225
MLC159 10218008547 BROOKS TONYA J 6208 LARCHWOOD AVE PHILADELPHIA PA 19143
MLC159 10218008553 SANDOVAL JOSE OSCAR 189 STEPHEN HANDS PATH EAST HAMPTON NY 11937
MLC159 10218008609 UMOH AKANIMOH I 15 JULES DR ALBANY NY 12205
MLC159 10218008614 FIGUEROA GUMERCINDO 13 15 ACTON ST HARTFORD CT 06120
MLC159 10218008646 SIMMONS MICHAEL DAVID 136 RIDGEVIEW ROAD STATESVILLE NC 28677
MLC159 10218008708 OQUENDO GEORGE 159 SAWDUST LN BROOKSVILLE FL 34601
MLC159 10218008722 MISTRY GATUBHAI 19 DICK ST CLIFTON NJ 07013
MLC159 10218008749 TUNIEWICZ JUDITH 2192 CYRESS ST WANTAGH NY 11793
MLC159 10218008755 MARFYAK ANDREW G 19 OLD MESSENGER RD GRANBY CT 06035
MLC159 10218008764 ZAZULKA WILLIAM 328 MALCOLM AVENUE GARFIELD NJ 07026
MLC159 10218008765 MARK MARTIN 153 ALLERTON FARMS RD MIDDLEBURY CT 06762
MLC159 10218008779 NIXDORF RAYMOND H 106 PRINCESS AVE LANCASTER PA 17601
MLC159 10218008780 JAYNES THEODORE G 7215 PARROT DR PORT RICHEY FL 34668
MLC159 10218008787 JOHNSTON JAMES R 213 STEIN ROAD CHICORA PA 16025
MLC159 10218008811 O'BOYLE HOLLY 461 RIDGE RD PITTSTON PA 18640
MLC159 10218008817 SNOW HARRY P SR 517 E 5TH AVE TARENTUM PA 15084
MLC159 10218008823 WALTERS STEVEN K 24 CONNECTICUT AVE FREEPORT NY 11520
MLC159 10218008859 ESPOSITO VINCENT 5 EAST COURT STREET EAST ROCKAWAY NY 11518
MLC159 10218008863 TEDESCO DAVID S 669 VIEWLAND DR YORKTOWN HEIGHTS NY 10598
MLC159 10218008894 DRAKSIN ZORA 7214 FOREST AVE RIDGEWOOD NY 11385
MLC159 10218008917 GONZALEZ RAFAEL D 13 FAIRMOUNT TER WEST ORANGE NJ 07052
MLC159 10218008938 MARTINEZ MARIA L 5117 SHERRY LN NEW PORT RICHEY FL 34653
MLC159 10218008973 BAUM JOYCE E 131 PENTAGON CIRCLE BARNESBORO PA 15714
MLC159 10218008977 HERMAN ROBERT E 10971 99TH PLACE NORTH SEMINOLE FL 33772
MLC159 10218008990 SELVER WALTER 353 ST.MARKS AVENUE FREEPORT NY 11520
MLC159 10218008994 TAUZANA AMELIA M 784 BARTHOLDI ST BRONX NY 10467
MLC159 10218009011 TORNABENE PHILIP F 2450 BIRCH ST EASTON PA 18042
MLC159 10218009025 DIGRAZIO PASQUALE A JR 20 BARRY AVE NORRISTOWN PA 19403
MLC159 10218009056 WILLIAMS BARBARA R 201 GREENHURST DR SUMMERVILLE SC 29483
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10218001337 90,000.00 89,816.08 12/1/96 11/1/26 9.375 9.375 15.375 5.250
10218002829 144,000.00 143,791.40 1/1/97 12/1/26 9.625 9.625 15.625 5.250
10218004576 226,400.00 226,400.00 3/1/97 2/1/27 10.625 10.625 16.625 6.875
10218004817 295,000.00 294,858.68 2/1/97 1/1/27 9.625 9.625 15.625 6.250
10218005020 41,500.00 41,486.74 2/1/97 1/1/27 11.500 10.500 17.500 7.000
10218006060 41,000.00 41,000.00 3/1/97 2/1/27 9.750 8.750 15.750 6.500
10218006187 80,800.00 80,662.44 2/1/97 1/1/27 9.750 8.750 15.750 5.250
10218006526 161,600.00 161,600.00 3/1/97 2/1/27 11.250 10.250 17.250 7.500
10218006656 46,750.00 46,722.40 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10218007100 207,000.00 207,000.00 3/1/97 2/1/27 10.500 9.500 16.500 5.750
10218007549 105,400.00 105,400.00 3/1/97 2/1/27 10.750 9.750 16.750 6.250
10218008140 126,000.00 126,000.00 3/1/97 2/1/27 9.875 8.875 15.875 5.000
10218008151 188,000.00 188,000.00 3/1/97 2/1/27 11.250 11.250 17.250 7.500
10218008162 80,000.00 79,923.05 2/1/97 1/1/27 9.625 9.625 15.625 6.750
10218008214 69,000.00 68,974.03 3/1/97 2/1/27 10.750 9.750 16.750 7.000
10218008225 62,000.00 62,000.00 4/1/97 3/1/27 8.875 8.875 14.875 5.000
10218008227 54,200.00 54,179.04 2/1/97 1/1/27 10.625 10.625 16.625 7.250
10218008228 221,000.00 220,916.80 3/1/97 2/1/27 10.750 9.750 16.750 5.250
10218008262 158,400.00 158,347.97 3/1/97 2/1/27 11.375 11.375 17.375 8.250
10218008328 131,000.00 130,950.68 3/1/97 2/1/27 10.750 9.750 16.750 6.000
10218008347 192,525.00 192,452.52 2/1/97 1/1/27 10.750 9.750 16.750 6.500
10218008356 260,000.00 259,899.43 2/1/97 1/1/27 10.625 10.625 16.625 7.250
10218008377 30,000.00 29,986.00 3/1/97 2/1/27 9.750 8.750 15.750 5.500
10218008405 34,450.00 34,450.00 3/1/97 2/1/27 9.750 8.750 15.750 5.500
10218008407 85,000.00 85,000.00 3/1/97 2/1/27 10.125 9.125 16.125 6.750
10218008421 61,500.00 61,483.35 3/1/97 2/1/27 12.250 11.250 18.250 7.250
10218008447 80,000.00 80,000.00 3/1/97 2/1/27 11.375 11.375 17.375 8.500
10218008458 89,000.00 88,951.39 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10218008464 43,500.00 43,500.00 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10218008489 199,750.00 199,640.90 3/1/97 2/1/27 9.000 8.000 15.000 5.500
10218008492 62,000.00 61,970.30 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10218008532 300,000.00 299,370.65 11/1/96 10/1/26 9.250 9.250 15.250 5.500
10218008547 33,000.00 33,000.00 3/1/97 2/1/27 11.250 11.250 17.250 7.875
10218008553 184,000.00 183,926.88 3/1/97 2/1/27 10.500 9.500 16.500 6.250
10218008609 40,000.00 39,984.94 3/1/97 2/1/27 10.750 9.750 16.750 6.000
10218008614 70,460.00 70,439.27 3/1/97 2/1/27 11.875 11.875 17.875 8.250
10218008646 93,500.00 93,500.00 3/1/97 2/1/27 8.125 8.125 14.125 4.500
10218008708 49,300.00 49,300.00 3/1/97 2/1/27 10.375 9.375 16.375 6.000
10218008722 159,600.00 159,600.00 3/1/97 2/1/27 9.125 9.125 15.125 7.000
10218008749 187,000.00 187,000.00 3/1/97 2/1/27 9.875 8.875 15.875 6.000
10218008755 63,000.00 62,972.13 3/1/97 2/1/27 10.000 9.000 16.000 6.750
10218008764 160,800.00 160,800.00 3/1/97 2/1/27 11.625 11.625 17.625 8.250
10218008765 114,300.00 114,259.25 3/1/97 2/1/27 11.000 10.000 17.000 6.750
10218008779 121,000.00 121,000.00 3/1/97 2/1/27 10.750 9.750 16.750 7.000
10218008780 40,500.00 40,500.00 3/1/97 2/1/27 10.000 9.000 16.000 5.750
10218008787 140,250.00 140,250.00 3/1/97 2/1/27 11.000 10.000 17.000 6.500
10218008811 72,000.00 71,972.15 2/1/97 1/1/27 10.625 9.625 16.625 6.000
10218008817 42,330.00 42,330.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10218008823 112,500.00 112,451.54 3/1/97 2/1/27 10.125 10.125 16.125 6.750
10218008859 148,750.00 148,750.00 3/1/97 2/1/27 10.500 9.500 16.500 6.250
10218008863 196,200.00 196,200.00 3/1/97 2/1/27 9.625 8.625 15.625 6.000
10218008894 130,000.00 130,000.00 3/1/97 2/1/27 11.500 10.500 17.500 7.125
10218008917 135,000.00 135,000.00 3/1/97 2/1/27 10.625 9.625 16.625 6.000
10218008938 118,800.00 118,800.00 3/1/97 2/1/27 9.875 8.875 15.875 5.000
10218008973 61,500.00 61,472.79 3/1/97 2/1/27 10.000 9.000 16.000 5.250
10218008977 104,000.00 103,972.63 3/1/97 2/1/27 12.375 11.375 18.375 7.500
10218008990 109,900.00 109,900.00 3/1/97 2/1/27 9.375 8.375 15.375 5.375
10218008994 128,700.00 128,700.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10218009011 62,475.00 62,475.00 3/1/97 2/1/27 10.750 9.750 16.750 6.500
10218009025 100,800.00 100,749.50 2/1/97 1/1/27 9.875 9.875 15.875 6.750
10218009056 54,000.00 54,000.00 3/1/97 2/1/27 9.875 8.875 15.875 5.000
</TABLE>
<PAGE>
Alliance Funding Company Page 15 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
MLC159 10218009069 FASSBENDER WILLIAM J III 21 LAURA LN OXFORD CT 06478
MLC159 10218009091 AMBRUSO DANIEL J 29 ANDOVER RD STAMFORD CT 06902
MLC159 10218009097 YELLICO MARK 121 FAIRMONT AVE MEDFORD NY 11763
MLC159 10218009098 MUENCH MICHAEL 181 CEDAR GROVE AVE STATEN ISLAND NY 10306
MLC159 10218009109 BRAY LESLEY J EVELEIGH 10 CHERRY ST LAMBERTVILLE NJ 08530
MLC159 10218009117 MCLAURIN MARYANN 2801 ELLICOTT ST NW WASHINGTON DC 20008
MLC159 10218009124 DANIELS LISA B 713 HIGHBLUE AVENUE HAWLEY PA 18428
MLC159 10218009127 KING DOROTHY L BRADSHAW 2521 WEST STREET WILMINGTON DE 19802
MLC159 10218009157 ALLEN JAMES P 259 E WATERBURY RD NAUGATUCK CT 06770
MLC159 10218009165 DOVIDIO MICHAEL J 12 BEECHWOOD ROAD BLAKESLEE PA 18610
MLC159 10218009169 KAHUY HARRY 4846 SHEPHERD STREET BROOKHAVEN PA 19015
MLC159 10218009193 DANCIU GRIGORE 285 STEEPLE POINTE DR ROSWELL GA 30076
MLC159 10218009216 SWEADE DEBORAH 122 BROCKWAY LN BROOKSVILLE FL 34601
MLC159 10218009232 BENNETT JUDITH 5053 58TH WAY N KENNETH CITY FL 33709
MLC159 10218009247 INCENDIO JOSEPH R 3811 SARIES CT SEAFORD NY 11783
MLC159 10218009264 CHISOLM ALVIN 7710 CHIPPINGDALE ROAD NORTH CHARLESTON SC 29418
MLC159 10218009269 PLOTKIN NANCY 562 FARVIEW AVE WYCKOFF NJ 07481
MLC159 10218009290 HERALD MARY JANE 348 CENTRE DRIVE CHICORA PA 16025
MLC159 10218009299 CRAIGG AVE 1050 DOYLESTOWN PIKE QUAKERTOWN PA 18951
MLC159 10218009310 CARTEGNA JOHN A RR 1 BOX 392G GREENTOWN PA 18426
MLC159 10218009313 FLOWERS DAVID A 10 WAYNE AVE NEW CUMBERLAND PA 17070
MLC159 10218009360 HNATKO WILLIAM 459 WOODLAND AVENUE HAWLEY PA 18428
MLC159 10218009373 SEARS MATTURE S 6723 BROOKMONT DR BALTIMORE MD 21207
MLC159 10218009374 MEADOR RONALD G 516 CENTRAL AVE SUMMERVILLE SC 29483
MLC159 10218009394 MONTERIO JUNE C 5312 GLEN GREEN CT ALEXANDRIA VA 22315
MLC159 10218009410 GUTIERREZ JUAN E 2045 BOGART AVE BRONX NY 10462
MLC159 10218009422 JOHNSON DIANA THOMAS 7223 HAVERFORD AVENUE PHILADELPHIA PA 19151
MLC159 10218009438 MCLAUGHLIN ROBERTA 1827 ELMHURST DR CLEARWATER FL 34625
MLC159 10218009454 FROELICH DAVID 8403 SHADY GLEN DRIVE ORLANDO FL 32819
MLC159 10218009491 JOHNSON ROBERT H 41 IRONWOOD ROAD NEW HARTFORD NY 13413
MLC159 10218009536 KORZINEK NIKOLINA 353 MEHLENBACHER RD BELLEAIR BLUFFS FL 33770
MLC159 10218009538 HANDLER LAWRENCE L 25 WEST ORCHARD ROAD CHAPPAQUA NY 10514
MLC159 10218009539 PARROTT GERALD 788 S MAIN ST SEYMOUR CT 06483
MLC159 10218009572 GAITHER ULYSSES 195-197 ENGLISH STREET NEW HAVEN CT 06511
MLC159 10218009586 NOWAKOWSKI DEAN 356 PARTRIDGE RUN RD GIBSONIA PA 15044
MLC159 10218009651 GREINER KIM E 3845 59TH ST N SAINT PETERSBURG FL 33709
MLC159 10218009739 HASNAIN NADIRA 3423 GLENNROSE DRIVE ATLANTA GA 30341
MLC159 10218009743 ZIZAK OTTO 1146 SHEEPSHEAD BAY RD BROOKLYN NY 11229
MLC159 10218009754 FELDER JAMES A 558 LULABELL ROAD RIDGEVILLE SC 29472
MLC159 10218009771 TRASTELIS STACY 36 NOEL AVE EDISON NJ 08817
MLC159 10218009817 TRAVERSI ROBERT M 342 NICOLLS ROAD DEER PARK NY 11729
MLC159 10218009919 COORE ELCORDIUS 2524 YOUNG AVE BRONX NY 10469
MLC159 10218009991 SADAKA ROBERT 236 ELLIN DRIVE PARK RIDGE NJ 07656
MLC159 10218010009 LILIEROSE SCOTT A 130 W GREENWICH ST READING PA 19601
MLC159 10218010011 LILIEROSE SCOTT A 870 BEACH ST READING PA 19605
MLC159 10218010051 CALLAHAN FLOYD M 258 IRSONSHIRE SOUTH LAUREL MD 20724
MLC159 10218010052 HEBERT ALFRED R 456 BETHMOUR RD BETHANY CT 06524
MLC159 10218010059 CZEGLEDI HANNAH M 7 DEMOCRAT RD MICKLETON NJ 08056
MLC159 10218010082 TUFF ALFRED 8 LIGHTHOUSE ROAD EAST HAMPTON NY 11937
MLC159 10218010108 COOVERT DONALD E 954 DON JUAN COURT PUNTA GORDA FL 33950
MLC159 10218010133 WHITFIELD MATTIE P. 319 EAST NELSON STREET MOUNT OLIVE NC 28365
MLC159 10218010195 FELDMAN MARK 1211 OSPREY CT MARCO ISLAND FL 34145
MLC159 10218010325 CHOU SU YUEH 6201 CELINE DR DOVER PA 17315
MLC159 10218010379 HORNE SALLIE P 2791 PINE VALLEY CIRCLE EAST POINT GA 30344
MLC159 10218010440 KREIDER KARL 879 SALISBURY CT LANCASTER PA 17601
MLC159 10218010444 NORDER ROBERT E 4020 SPEAR STREET BETHLEHEM PA 18017
MLC159 10218010482 LEVINE LOUIS 205 KEER AVE NEWARK NJ 07112
MLC159 10218010484 AUBYN EDMUND ST 139 RIDDLE ST BRENTWOOD NY 11717
MLC159 10218010543 ALBINO ROBERTO SR 385 WEST GORDON STREET ALLENTOWN PA 18102
MLC159 10218010668 CIPRIANO REGINA M 27 BRIGHAM ST WATERBURY CT 06708
MLC159 10218010836 VIELDHOUSE JOHN D 724 WALNUT DR FRANKLIN LAKES NJ 07417
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10218009069 129,000.00 129,000.00 3/1/97 2/1/27 9.625 8.625 15.625 6.000
10218009091 222,400.00 222,400.00 3/1/97 2/1/27 9.750 8.750 15.750 5.500
10218009097 112,600.00 112,556.45 2/1/97 1/1/27 10.625 10.625 16.625 7.750
10218009098 108,000.00 107,952.22 3/1/97 2/1/27 10.000 10.000 16.000 6.625
10218009109 129,200.00 129,200.00 3/1/97 2/1/27 9.875 9.875 15.875 7.500
10218009117 437,750.00 437,750.00 3/1/97 2/1/27 9.875 9.875 15.875 6.500
10218009124 75,000.00 75,000.00 4/1/97 3/1/27 12.750 11.750 18.750 7.500
10218009127 73,950.00 73,950.00 3/1/97 2/1/27 10.875 9.875 16.875 7.000
10218009157 116,000.00 116,000.00 3/1/97 2/1/27 13.250 12.250 19.250 8.500
10218009165 66,400.00 66,400.00 4/1/97 3/1/27 8.750 7.750 14.750 4.500
10218009169 123,500.00 123,500.00 3/1/97 2/1/27 11.000 10.000 17.000 6.500
10218009193 337,500.00 337,365.88 2/1/97 1/1/27 10.500 9.500 16.500 6.250
10218009216 54,400.00 54,400.00 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10218009232 54,000.00 53,974.14 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10218009247 180,000.00 180,000.00 3/1/97 2/1/27 11.250 10.250 17.250 6.500
10218009264 53,380.00 53,380.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10218009269 360,000.00 360,000.00 3/1/97 2/1/27 8.875 7.875 14.875 5.250
10218009290 53,000.00 53,000.00 4/1/97 3/1/27 11.250 10.250 17.250 6.000
10218009299 207,000.00 207,000.00 3/1/97 2/1/27 9.875 8.875 15.875 5.000
10218009310 104,000.00 103,965.83 3/1/97 2/1/27 11.375 10.375 17.375 7.000
10218009313 96,300.00 96,255.07 3/1/97 2/1/27 9.750 8.750 15.750 6.750
10218009360 73,950.00 73,950.00 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10218009373 84,000.00 84,000.00 3/1/97 2/1/27 11.875 11.875 17.875 8.500
10218009374 200,000.00 200,000.00 3/1/97 2/1/27 10.000 9.000 16.000 5.500
10218009394 218,450.00 218,450.00 3/1/97 2/1/27 10.375 10.375 16.375 7.250
10218009410 182,400.00 182,400.00 3/1/97 2/1/27 8.875 8.875 14.875 5.250
10218009422 69,250.00 69,250.00 3/1/97 2/1/27 9.625 9.625 15.625 7.250
10218009438 91,200.00 91,200.00 3/1/97 2/1/27 12.500 11.500 18.500 7.500
10218009454 81,000.00 80,971.12 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10218009491 196,000.00 195,935.62 3/1/97 2/1/27 11.375 11.375 17.375 8.000
10218009536 81,100.00 81,100.00 3/1/97 2/1/27 10.500 9.500 16.500 6.000
10218009538 473,790.00 473,790.00 3/1/97 2/1/27 9.500 8.500 15.500 6.250
10218009539 112,500.00 112,500.00 3/1/97 2/1/27 10.125 10.125 16.125 6.750
10218009572 79,900.00 79,900.00 3/1/97 2/1/27 11.625 10.625 17.625 7.250
10218009586 113,600.00 113,559.49 3/1/97 2/1/27 11.000 10.000 17.000 6.500
10218009651 59,200.00 59,200.00 3/1/97 2/1/27 9.500 8.500 15.500 5.500
10218009739 158,950.00 158,950.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10218009743 91,800.00 91,800.00 3/1/97 2/1/27 9.875 9.875 15.875 7.500
10218009754 81,000.00 81,000.00 3/1/97 2/1/27 10.000 9.000 16.000 5.500
10218009771 194,000.00 194,000.00 3/1/97 2/1/27 10.500 9.500 16.500 6.250
10218009817 128,000.00 127,920.44 3/1/97 2/1/27 8.375 7.375 14.375 3.750
10218009919 219,600.00 219,600.00 3/1/97 2/1/27 11.000 10.000 17.000 6.750
10218009991 324,000.00 324,000.00 4/1/97 3/1/27 11.875 11.875 17.875 8.250
10218010009 29,900.00 29,889.57 2/1/97 1/1/27 11.100 10.100 17.100 6.850
10218010011 94,850.00 94,814.29 2/1/97 1/1/27 10.750 9.750 16.750 6.500
10218010051 87,100.00 87,066.31 3/1/97 2/1/27 10.625 10.625 16.625 7.750
10218010052 166,400.00 166,400.00 3/1/97 2/1/27 11.250 10.250 17.250 8.000
10218010059 121,550.00 121,550.00 3/1/97 2/1/27 11.250 10.250 17.250 6.750
10218010082 350,000.00 350,000.00 3/1/97 2/1/27 9.750 8.750 15.750 5.500
10218010108 189,000.00 189,000.00 4/1/97 3/1/27 8.625 7.625 14.625 3.750
10218010133 45,600.00 45,581.88 3/1/97 2/1/27 10.500 9.500 16.500 5.500
10218010195 261,180.00 261,054.88 3/1/97 2/1/27 9.625 9.625 15.625 6.250
10218010325 195,400.00 195,281.22 2/1/97 1/1/27 11.750 10.750 17.750 7.500
10218010379 73,600.00 73,600.00 4/1/97 3/1/27 9.625 8.625 15.625 5.000
10218010440 99,000.00 98,950.01 2/1/97 1/1/27 9.375 9.375 15.375 6.000
10218010444 160,225.00 160,225.00 4/1/97 3/1/27 10.500 9.500 16.500 5.250
10218010482 89,000.00 89,000.00 3/1/97 2/1/27 9.500 9.500 15.500 6.250
10218010484 75,000.00 75,000.00 3/1/97 2/1/27 10.375 9.375 16.375 6.000
10218010543 41,200.00 41,200.00 4/1/97 3/1/27 12.500 11.500 18.500 7.250
10218010668 70,000.00 70,000.00 4/1/97 3/1/27 10.375 9.375 16.375 7.250
10218010836 500,000.00 500,000.00 3/1/97 2/1/27 9.625 9.625 15.625 6.250
</TABLE>
<PAGE>
Alliance Funding Company Page 16 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
MLC159 10218010858 LESCHEK ROBERT 45 BOSKO DR EAST BRUNSWICK NJ 08816
MLC159 10218010876 VINCENT MONIQUE 1488 ADELE CT ELMONT NY 11003
MLC159 10218010877 GOODSON DORIS C 7588 STAFFORD STREET NORTH CHARLESTON SC 29406
MLC159 10218010894 REESE EUGENE R 430 OLD PARK ROAD LEWISTOWN PA 17044
MLC159 10218010924 LINK RALPH 10090 HILLSDALE DRIVE HUNTINGTON PA 15642
MLC159 10218010940 HIBSHMAN KIRK R 218 W CARPENTER AVE MYERSTOWN PA 17067
MLC159 10218010951 LEWANDOWSKI SHURLA 807 CENTERWOOD COURT BRANDON FL 33511
MLC159 10218011079 ANZALONE GREGG 82 GUY ST HARRINGTON PARK NJ 07640
MLC159 10218011119 SILVERMAN HENRY 2541 HABANA PLACE TAMPA FL 33618
MLC159 10218011231 NACLERIO EDWARD 120 BRAMBACH ROAD SCARSDALE NY 10583
MLC159 10218011312 MARTINEZ WANDA L 94 WILSON PL IRVINGTON NJ 07111
----------- ----------
133 Sale Total
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10218010858 200,000.00 200,000.00 4/1/97 3/1/27 10.375 10.375 16.375 6.500
10218010876 168,300.00 168,300.00 3/1/97 2/1/27 9.625 8.625 15.625 6.000
10218010877 54,800.00 54,800.00 4/1/97 3/1/27 10.000 9.000 16.000 5.250
10218010894 133,500.00 133,449.74 3/1/97 2/1/27 10.750 9.750 16.750 5.750
10218010924 60,000.00 60,000.00 4/1/97 3/1/27 12.500 11.500 18.500 7.250
10218010940 41,170.00 41,140.85 3/1/97 2/1/27 10.125 9.125 16.125 6.000
10218010951 71,200.00 71,200.00 3/1/97 2/1/27 12.375 11.375 18.375 7.500
10218011079 252,000.00 252,000.00 4/1/97 3/1/27 9.625 9.625 15.625 5.750
10218011119 84,150.00 84,150.00 4/1/97 3/1/27 8.625 7.625 14.625 3.750
10218011231 172,000.00 172,000.00 4/1/97 3/1/27 11.000 11.000 17.000 7.000
10218011312 68,800.00 68,800.00 4/1/97 3/1/27 12.875 11.875 18.875 8.250
------------- ------------- ------ ------ ------ -----
17,362,435.00 17,359,019.94 10.281 9.649 16.281 6.296
</TABLE>
<PAGE>
Alliance Funding Company Page 17 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
ML160 10216101013 KJELLBERG CARL SR 3 SANDRA COURT CHESTNUT RIDGE NY 10954
ML160 10216111754 PALMER CLYDE K 5105 NORTH SKY VISTA AVENUE YAKIMA WA 98901
ML160 10216122260 CIRULLO SANDRA 5779 MCCASLAND AVENUE PORTAGE IN 46368
ML160 10216124905 KRITIKOS TONY 9920 WEST 187TH STREET MOKENA IL 60438
ML160 10216127177 MAYER J CHRISTOPHER 2405 COGSWELL LANSING MI 48906
ML160 10216135742 WITZEL PHILIP 640 WYNGATE LANE BUFFALO GROVE IL 60089
ML160 10216136418 HARO GREGORIO 657 N HENDERSON JOLIET IL 60432
ML160 10216136420 BURNSIDE ELIZABETH A 4023 2ND AVENUE SOUTH MINNEAPOLIS MN 55407
ML160 10216137830 AL-MAQHZUMI MUSLEM 5925 LONYO DETROIT MI 48210
ML160 10216138186 SANDOVAL CAROLINE 1123 MAYFLOWER LINCOLN PARK MI 48146
ML160 10216138194 BOOTS JR JAMES L 4072 WEST GENESSE ROAD LAPEER MI 48446
ML160 10216138567 NORTON RICHARD A 6609 SEDGEMORE PLACE FORT WAYNE IN 46835
ML160 10216138635 JOHNSON RICHARD ALVA 1624 OAK RD ST. CLOUD MN 56303
ML160 10216138744 HENNEKE GREGORY L 1925-27 NORTH TALBOTT INDIANAPOLIS IN 46202
ML160 10216138842 MORGAN JOSEPH E 2020 NORTH DELAWARE INDIANAPOLIS IN 46202
ML160 10216138896 LEMONS MARY LOU 6871 UPHAM STREET ARVADA CO 80003
ML160 10216138951 ABDULREDA HASSAN 238 VOORHEIS PONTIAC MI 48341
ML160 10216138966 KEARNS GEORGE 204 CENTER PARK DRIVE FLORENCE KY 41042
ML160 10216139051 CORPOLONGO DONALD L 1459 E RIO VISTA AVENUE BURLINGTON WA 98233
ML160 10216139309 HURT JAMES A 18911 KENTFILED DETROIT MI 48219
ML160 10216139417 WINGATE CHARLES 2659 WEBB DETROIT MI 48206
ML160 10216139797 FRAU JUDITH 1742 N. CENTRAL PARK AVENUE CHICAGO IL 60647
ML160 10216139810 CRUZ JR ANIBAL 553 DOUGLAS AVENUE CALUMET CITY IL 60409
ML160 10216139895 PASCUA JOMER 8029 ORCHESTRA AVENUE LAS VEGAS NV 89123
ML160 10216139929 ALANDER ERIK 0487 GCR 647 GRAND LAKE CO 80447
ML160 10216139963 HALABI AMAL 6782 VAUGHAN DETROIT MI 48228
ML160 10216139967 FARHAT ZEINAB 7243 MANSFIELD DETROIT MI 48228
ML160 10216140032 LUGARDO FEDERICO 2115 NORTH SPAULDING CHICAGO IL 60647
ML160 10216140107 RASHEED KARRIEM 15031 DOBSON DOLTON IL 60419
ML160 10216140108 GILNA DEREK A 9205 BUMBLE BEE UNIT 202 B DES PLAINES IL 60016
ML160 10216140255 HENRION RUBY I 3917 WEST RIDGECREST CIRCLE SALT LAKE CITY UT 84118
ML160 10216140367 AL-MAQHZUMI HUSSAIN 6906 MANSFIELD DETROIT MI 48228
ML160 10216140376 RIEDE KENNETH C 102 HARVARD PLACE SOUTHGATE KY 41071
ML160 10216140425 MESSANA BONNIE 4424 WEST 125TH STREET ALSIP IL 60658
ML160 10216140437 CLARK HATTIE J 1528 N. LOTUS CHICAGO IL 60651
ML160 10216140440 ALFOAADY ALAALDEEN 7303 MEMORIAL DETROIT MI 48228
ML160 10216140594 AL-REFO MISLEH 7431 KENTUCKY DEARBORN MI 48126
ML160 10216140686 ALSHARA AHMAD 8495 GRAYFIELD DEARBORN HEIGHTS MI 48127
ML160 10216140687 AL-HUSSEINY ABDUL 7600 PENROD DETROIT MI 48228
ML160 10216140688 AL-AMIRI ANEES 7758 THEISEN DEARBORN MI 48126
ML160 10216140831 HASSE JUDY I 1855 BAKER PARK ROAD MAPLE PLAIN MN 55359
ML160 10216140832 AL-MOSAWI AKEL 6928 TERNES DEARBORN MI 48126
ML160 10216140833 BERDAN LINDA H 1590 WADE DRIVE LAPEER MI 48446
ML160 10216140834 SMITH KAREN 7539 HARRIET AVENUE SOUTH RICHFIELD MN 55423
ML160 10216140929 AL-HECHEMY HAIDER 7855 STEADMAN DEARBORN MI 48126
ML160 10216141004 LILLGE MICHAEL L 12366 W. BELOIT ROAD GREENFIELD WI 53228
ML160 10216141097 REDMAN LAWRENCE 10476 HILLCREST DR. FENTON MI 48430
ML160 10216141108 AL-GEBURY AIAD 6469 BARRIE DEARBORN MI 48126
ML160 10216141202 LOCOCO RALPH N 1033 EAST KENILWORTH AVENUE LOMBARD IL 60148
ML160 10216141213 SLATTERY MARY H 4788 WEST GRANGE AVENUE GREENFIELD WI 53220
ML160 10216141222 WIRE MARK J 3638 E. TESH PLACE INDIANAPOLIS IN 46203
ML160 10216141305 DANFORTH REBECCA L 9334 S. PRAIRIE AVENUE CHICAGO IL 60619
ML160 10216141317 YOUNO ROBERT H 5260 E. POTOMAC RUN WEST BLOOMFIELD TWP MI 48322
ML160 10216141397 VERNOR FREDRICK W 3019 M DRIVE NORTHEAST AUBURN WA 98002
ML160 10216141439 TROUT JERE 39710 WALES CANTON MI 48188
ML160 10216141445 KANOON BITO K 4433 WEST ESTES LINCOLNWOOD IL 60646
ML160 10216141447 RETZLAFF SUSAN V 205 MILLARD AVENUE FOX RIVER GROVE IL 60021
ML160 10216141501 SOBEH ZI FOUKAR M 7250 FORRER DETROIT MI 48228
ML160 10216141508 AL-DHALEMI AHMED 6744 MANSFIELD DETROIT MI 48228
ML160 10216141514 WUTWUT QAISER H 7854 BINGHAM DEARBORN MI 48126
ML160 10216141554 DUNN MARK A 2096 LARK DRIVE WALLA WALLA WA 99362
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10216101013 126,400.00 123,954.15 4/1/96 3/1/26 8.125 8.125 14.125 6.000
10216111754 112,000.00 111,689.27 6/1/96 5/1/26 11.625 11.625 17.625 8.000
10216122260 73,500.00 73,284.47 9/1/96 8/1/26 9.625 9.625 15.625 5.750
10216124905 150,000.00 149,571.50 9/1/96 8/1/26 9.750 9.750 15.750 6.000
10216127177 80,900.00 80,713.19 10/1/96 9/1/26 9.875 9.875 15.875 5.750
10216135742 167,000.00 166,864.69 12/1/96 11/1/26 11.000 10.000 17.000 6.750
10216136418 42,700.00 42,684.78 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10216136420 67,900.00 67,819.98 12/1/96 11/1/26 10.625 10.625 16.625 6.750
10216137830 45,000.00 45,000.00 3/1/97 2/1/27 9.375 9.375 15.375 5.750
10216138186 30,600.00 30,600.00 3/1/97 2/1/27 10.875 9.875 16.875 6.250
10216138194 80,700.00 80,700.00 3/1/97 2/1/27 10.375 10.375 16.375 6.750
10216138567 88,000.00 88,000.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216138635 76,400.00 76,400.00 3/1/97 2/1/27 9.000 8.000 15.000 4.500
10216138744 55,000.00 55,000.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216138842 89,600.00 89,600.00 3/1/97 2/1/27 8.875 7.875 14.875 4.000
10216138896 116,000.00 116,000.00 3/1/97 2/1/27 12.000 11.000 18.000 7.250
10216138951 34,900.00 34,900.00 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10216138966 71,200.00 71,200.00 3/1/97 2/1/27 12.000 11.000 18.000 7.250
10216139051 144,500.00 144,500.00 3/1/97 2/1/27 8.750 7.750 14.750 4.500
10216139309 24,500.00 24,500.00 4/1/97 3/1/27 11.250 10.250 17.250 6.750
10216139417 35,000.00 35,000.00 3/1/97 2/1/27 10.500 9.500 16.500 5.750
10216139797 65,000.00 65,000.00 4/1/97 3/1/27 9.875 8.875 15.875 5.000
10216139810 62,400.00 62,400.00 3/1/97 2/1/27 12.500 11.500 18.500 7.500
10216139895 115,200.00 115,200.00 4/1/97 3/1/27 10.250 9.250 16.250 5.750
10216139929 148,000.00 148,000.00 3/1/97 2/1/27 9.625 9.625 15.625 6.250
10216139963 52,000.00 51,882.44 2/1/97 1/1/27 11.250 11.250 17.250 7.500
10216139967 32,000.00 32,000.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216140032 217,800.00 217,800.00 4/1/97 3/1/27 10.375 9.375 16.375 5.750
10216140107 180,000.00 180,000.00 3/1/97 2/1/27 10.125 9.125 16.125 5.250
10216140108 41,200.00 41,180.78 2/1/97 1/1/27 9.750 9.750 15.750 6.000
10216140255 45,000.00 45,000.00 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10216140367 36,000.00 36,000.00 4/1/97 3/1/27 9.625 9.625 15.625 5.750
10216140376 76,500.00 76,464.31 3/1/97 2/1/27 9.750 9.750 15.750 6.000
10216140425 103,700.00 103,664.99 3/1/97 2/1/27 11.250 10.250 17.250 6.750
10216140437 72,200.00 72,200.00 3/1/97 2/1/27 11.250 10.250 17.250 6.750
10216140440 60,300.00 60,300.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216140594 81,900.00 81,900.00 3/1/97 2/1/27 9.375 9.375 15.375 5.750
10216140686 76,500.00 76,500.00 3/1/97 2/1/27 9.375 9.375 15.375 5.750
10216140687 53,100.00 53,100.00 3/1/97 2/1/27 9.375 9.375 15.375 5.750
10216140688 103,500.00 103,500.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216140831 142,000.00 141,926.38 3/1/97 2/1/27 9.250 8.250 15.250 6.250
10216140832 75,600.00 75,568.30 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216140833 68,000.00 68,000.00 4/1/97 3/1/27 12.500 11.500 18.500 7.500
10216140834 72,000.00 72,000.00 4/1/97 3/1/27 10.000 9.000 16.000 5.250
10216140929 72,000.00 72,000.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216141004 65,000.00 65,000.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216141097 99,000.00 99,000.00 4/1/97 3/1/27 10.000 10.000 16.000 6.000
10216141108 67,900.00 67,900.00 3/1/97 2/1/27 10.250 9.250 16.250 5.750
10216141202 116,200.00 116,200.00 3/1/97 2/1/27 11.000 10.000 17.000 6.000
10216141213 119,800.00 119,800.00 4/1/97 3/1/27 8.875 8.875 14.875 5.000
10216141222 59,200.00 59,200.00 3/1/97 2/1/27 9.625 8.625 15.625 5.000
10216141305 62,800.00 62,800.00 4/1/97 3/1/27 11.250 11.250 17.250 6.750
10216141317 120,700.00 120,700.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10216141397 68,100.00 68,100.00 3/1/97 2/1/27 11.875 10.875 17.875 7.250
10216141439 102,400.00 102,400.00 4/1/97 3/1/27 12.750 11.750 18.750 7.500
10216141445 240,300.00 240,300.00 4/1/97 3/1/27 9.750 8.750 15.750 5.750
10216141447 77,000.00 76,964.08 3/1/97 2/1/27 9.750 9.750 15.750 5.750
10216141501 57,600.00 57,600.00 3/1/97 2/1/27 12.750 11.750 18.750 7.500
10216141508 45,900.00 45,900.00 3/1/97 2/1/27 9.625 9.625 15.625 5.750
10216141514 84,600.00 84,600.00 3/1/97 2/1/27 9.625 9.625 15.625 5.750
10216141554 72,800.00 72,800.00 4/1/97 3/1/27 9.625 8.625 15.625 4.750
</TABLE>
<PAGE>
Alliance Funding Company Page 18 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
ML160 10216141608 BYE JEROME E 1752 WEST 19TH AVENUE APACHE JUNCTION AZ 85220
ML160 10216141662 DAVIS MICHAEL 6841 S HERMITAGE CHICAGO IL 60636
ML160 10216141684 EARLE SANDRA J 812 WHITTIER GROSSE POINTE PARK MI 48230
ML160 10216141758 AL-JABUR BASIM 5299 HARTWELL DEARBORN MI 48126
ML160 10216141762 DOTSON LULA M 16900 MT. VERNON SOUTHFIELD MI 48075
ML160 10216141857 LUSBY TERRY 4842 W. FERDINAND CHICAGO IL 60644
ML160 10216141867 HAMID JOHN M 14944 PROSPECT DEARBORN MI 48126
ML160 10216141869 HABHAB ALI N 4853 PALMER STREET DEARBORN MI 48126
ML160 10216141870 JOHNSON THOMAS M JR 5101 OAKWOOD ORTONVILLE MI 48462
ML160 10216141923 VENCHE CARL C 8620 E MEADOWBROOK AVENUE SCOTTSDALE AZ 85251
ML160 10216141973 FUGATE BARBARA JANE 4008 23RD AVENUE SOUTH MINNEAPOLIS MN 55407
ML160 10216142094 SAWA SAMI N 4046 LINDOW STERLING HEIGHTS MI 48310
ML160 10216142097 AL-RESUL AMAR 6700 WOODMONT DETROIT MI 48228
ML160 10216142118 FISHER-GILIN HALI 2485 SUN REEF ROAD LAS VEGAS NV 89128
ML160 10216142269 FAVORS ALBERT 27130 DEVONSHIRE SOUTHFIELD MI 48076
ML160 10216142356 KHREIZAT SALMAN 6036 ORCHARD DEARBORN MI 48126
ML160 10216142435 SHEPHERD TAJUANA 209 BLUECREST AVENUE DAYTON OH 45427
ML160 10216142444 CHARAFEDDINE MOHAMAD 13125 TIREMAN DEARBORN MI 48126
ML160 10216142506 AMACK LARRY E 418 SOUTH WHEELING WAY AURORA CO 80012
ML160 10216142523 AYYASH DALAL 7444 SHOLER BRIDGEVIEW IL 60455
ML160 10216142545 SHEHAB ALI I 4315-4317 CALHOUN DEARBORN MI 48126
ML160 10216142608 DAY PATRICK R 25462 RESTHAVEN TERRACE ANTIOCH IL 60002
ML160 10216142799 BURGGRAAFF EDWARD 17516 WEST GAGES LAKE ROAD GAGES LAKE IL 60030
ML160 10216142813 KIMBROUGH EVA 526 BLAIR AVENUE ST PAUL MN 55103
ML160 10216142897 POINDEXTER GARY STEVEN 15381 WENDY TAYLOR MI 48180
ML160 10216143008 AL-BREHI HASEB 6856 GRANDMONT DETROIT MI 48228
ML160 10216143065 BOYD CLEARTS JR 527 W. 147TH PLACE HARVEY IL 60426
ML160 10216143072 GOKHAN SERDAR 3512 NORTH ASHLAND CHICAGO IL 60657
ML160 10216143211 BAIZ HUSSEIN H 7250 MIDDLEPOINTE DEARBORN MI 48126
ML160 10216143251 ASKEW CORNEIL 8065 BLISS DETROIT MI 48234
ML160 10216143298 DEATON JAMES A 39 15TH STREET NEW PORT KY 41071
ML160 10216143367 TORTORELLA CURTIS W 25942 W. HEART-O-LAKES BLVD. ANTIOCH IL 60002
ML160 10216143423 AL-AMEEDI YOUSIF 5112 ORCHARD DEARBORN MI 48126
-----------------------------------
94 Sale Total
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10216141608 76,500.00 76,500.00 4/1/97 3/1/27 9.375 9.375 15.375 5.750
10216141662 45,500.00 45,500.00 4/1/97 3/1/27 9.875 8.875 15.875 5.000
10216141684 360,000.00 360,000.00 3/1/97 2/1/27 11.500 10.500 17.500 7.250
10216141758 70,200.00 70,164.55 3/1/97 2/1/27 9.375 9.375 15.375 5.750
10216141762 88,000.00 88,000.00 4/1/97 3/1/27 12.750 11.750 18.750 7.500
10216141857 49,000.00 49,000.00 4/1/97 3/1/27 12.250 11.250 18.250 6.750
10216141867 86,400.00 86,400.00 3/1/97 2/1/27 9.625 9.625 15.625 5.750
10216141869 78,700.00 78,700.00 3/1/97 2/1/27 10.125 9.125 16.125 5.000
10216141870 123,300.00 123,300.00 4/1/97 3/1/27 8.875 8.875 14.875 6.000
10216141923 117,300.00 117,300.00 4/1/97 3/1/27 10.125 10.125 16.125 6.500
10216141973 78,300.00 78,300.00 4/1/97 3/1/27 10.500 9.500 16.500 5.750
10216142094 122,000.00 122,000.00 3/1/97 2/1/27 8.375 8.375 14.375 4.500
10216142097 67,500.00 67,500.00 4/1/97 3/1/27 9.625 9.625 15.625 5.750
10216142118 416,500.00 416,500.00 4/1/97 3/1/27 8.875 8.875 14.875 5.250
10216142269 136,000.00 136,000.00 4/1/97 3/1/27 12.750 11.750 18.750 7.500
10216142356 62,000.00 61,961.47 3/1/97 2/1/27 8.375 8.375 14.375 4.500
10216142435 49,500.00 49,500.00 4/1/97 3/1/27 10.125 9.125 16.125 5.000
10216142444 72,200.00 72,200.00 3/1/97 2/1/27 9.250 8.250 15.250 4.500
10216142506 88,500.00 88,500.00 4/1/97 3/1/27 9.375 9.375 15.375 5.750
10216142523 106,800.00 106,800.00 4/1/97 3/1/27 12.750 11.750 18.750 7.500
10216142545 108,900.00 108,900.00 4/1/97 3/1/27 8.875 8.875 14.875 5.000
10216142608 130,500.00 130,500.00 4/1/97 3/1/27 8.875 8.875 14.875 5.000
10216142799 364,500.00 364,500.00 4/1/97 3/1/27 9.875 9.875 15.875 6.000
10216142813 52,600.00 52,600.00 4/1/97 3/1/27 10.625 9.625 16.625 6.000
10216142897 46,000.00 46,000.00 4/1/97 3/1/27 8.875 7.875 14.875 3.750
10216143008 64,800.00 64,800.00 4/1/97 3/1/27 9.625 9.625 15.625 5.750
10216143065 37,000.00 37,000.00 4/1/97 3/1/27 12.250 11.250 18.250 6.750
10216143072 222,600.00 222,600.00 4/1/97 3/1/27 8.375 8.375 14.375 4.750
10216143211 132,300.00 132,300.00 4/1/97 3/1/27 10.500 9.500 16.500 5.750
10216143251 39,100.00 39,100.00 4/1/97 3/1/27 10.875 9.875 16.875 6.250
10216143298 105,300.00 105,300.00 4/1/97 3/1/27 8.875 8.875 14.875 5.000
10216143367 165,700.00 165,700.00 4/1/97 3/1/27 11.250 10.250 17.250 6.750
10216143423 85,500.00 85,500.00 4/1/97 3/1/27 9.625 9.625 15.625 5.750
------------ ------------ ------ ------ ------ -----
9,072,000.00 9,067,759.33 10.084 9.536 16.084 5.868
</TABLE>
<PAGE>
Alliance Funding Company Page 19 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule A
1997-1 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Sale ID Account Name Address City State Zip Code
- ------- ------- ---- ------- ---- ----- --------
<C> <S> <C> <C> <C> <C> <C>
MLC161 10218001739 KHAN SHARIF 73 VAN REYPEN ST JERSEY CITY NJ 07306
MLC161 10218003906 CAPARROS PERPETUO I 61 PINEBROOK RD MANALAPAN NJ 07726
MLC161 10218004676 LEE ANDREW 26 FORSTER AVE MOUNT VERNON NY 10552
MLC161 10218004793 WHITTAKER JAMES M 22 HIGHLAND RD BINGHAMTON NY 13901
MLC161 10218005932 CASTIGLIA LISA 72 GENESEE AVENUE STATEN ISLAND NY 10308
MLC161 10218005955 MULDERRIG KENNETH 131 MANHATTAN AVE WALDWICK NJ 07463
MLC161 10218006939 BRANCH PAUL A 13647 HAPPY HILL RD DADE CITY FL 33525
MLC161 10218007069 HEMPHILL DOROTHY 2401 MOTT AVENUE FAR ROCKAWAY NY 11691
MLC161 10218007474 PANAMA REYNALDO 211 POMEROY STREET PEEKSKILL NY 10566
MLC161 10218008063 SASNAUSKAS JAMES 9 EGBERT PL STATEN ISLAND NY 10305
MLC161 10218008113 MARTIN MICHAEL 581582 CENTRAL NEW HAVEN CT 06515
MLC161 10218008115 MARKS STEVEN I 28 MIDWOOD DR FLORHAM PARK NJ 07932
MLC161 10218008397 CARY ARNOLD D 746 MOUNT CARMEL AVE HAMDEN CT 06518
MLC161 10218008529 TINSLEY AVERY B 8165 JOT EM DOWN RD GAINESVILLE GA 30506
MLC161 10218008795 STRELECKI JOSEPH J 547 -49 MAIN STREET AVOCA PA 18641
MLC161 10218008932 ARMSTRONG DARRELL C 630 OLD HOME LN RIDGEVILLE SC 29472
MLC161 10218009189 CAN ILKNUR 109-113 BUFFALO AVENUE PATERSON NJ 07503
MLC161 10218009207 QUIN JAMES 860 GABLE GATE TURN ROSWELL GA 30076
MLC161 10218009241 ANTHOLIS JOHN K 7 GREEN HILL RD MORRISTOWN NJ 07960
MLC161 10218009441 MEJIA MARTHA 12 QUINTREE LN MELVILLE NY 11747
MLC161 10218009469 REED TRAVIS J 448 N 5TH ST LEBANON PA 17046
MLC161 10218009770 WILSON PHILLIP R 298 LELOUP ROAD MELROSE NY 12121
MLC161 10218009827 HICKS THERESA S 273 CARLTON DRIVE SHIRLEY NY 11967
MLC161 10218009963 AKACKI EDWARD Z 50 W CHURCH RD STEVENS PA 17578
MLC161 10218010008 BRAMLETT DORAN A. 943 COTTINGHAM DRIVE MT. PLEASANT SC 29464
MLC161 10218010031 ARMOUR BOBBY 3069 RIDGE ROAD CANTON GA 30114
MLC161 10218010039 THURMAN ANDREW E 106 RICHMOND DR PITTSBURGH PA 15215
MLC161 10218010078 ALBANESE ROBERT 6480 FRONT STREET MARTINS CREEK PA 18063
MLC161 10218010143 CURRY ELIZABETH 238 ALABAMA AVE TOMS RIVER NJ 08753
MLC161 10218010185 STANIS KEVIN S 107 BUNGAY RD SEYMOUR CT 06483
MLC161 10218010205 RODRIGUEZ AGUSTIN 2922 TULIP AVENUE BALDWIN NY 11510
MLC161 10218010255 ZBRIZHER YAKOV 245 SILVER LN OLD BRIDGE NJ 08857
MLC161 10218010394 MCCORD HUGH J 322 PHEASANT RD GRANTVILLE PA 17028
MLC161 10218010428 KOSEK JOHN L 360 MCCARRELL AVE WASHINGTON PA 15301
MLC161 10218010544 BURRELL CHARLES L. 219 BAINBRIDGE CIRCLE GARNER NC 27529
MLC161 10218010592 DOMINGUEZ FABIAN E 18 WEDGEWOOD DR WEST ORANGE NJ 07052
MLC161 10218010600 ZACCAGNINI DEBORAH 17 INGLENOOK DRIVE NEW FAIRFIELD CT 06812
MLC161 10218010610 GATLIN SIDNEY L 8442 KAVANAGH RD BALTIMORE MD 21222
MLC161 10218010716 HAZZARD WILLIAM H 743 MAIN ST SLATINGTON PA 18080
MLC161 10218010774 CHACOS DAVID R 1101 ESTATEWOOD DRIVE BRANDON FL 33510
MLC161 10218010875 LEARY PATRICK J 2585 BETTIS TRIBBLE GAP RD CUMMING GA 30130
MLC161 10218010912 LEHAN LLOYD DANIEL IV 12340 144TH STREET NORTH LARGO FL 33774
MLC161 10218011019 GIAMBRONE FRANK 406 LAKEVIEW DRIVE HENRYVILLE PA 18332
MLC161 10218011336 BERRY JO ANNE 722 LINCOLN AVE BURLINGTON NJ 08016
MLC161 10218011351 EVON KELLY A 144 SUMMIT RD PROSPECT CT 06712
MLC161 10218011516 GLEKAS KONSTANTINOS 12 ELM TREE PL STAMFORD CT 06906
MLC161 10218011914 SPENCER JOHN F 174 S MOUNTAIN AVE MONTCLAIR NJ 07042
MLC161 10218011999 MACCI JOHN T 11 FRANCIS DR MONTROSE NY 10548
MLC161 10218012086 PALMER LLOYD L 13934 FRIENDSHIP LANE ODESSA FL 33556
MLC161 10218012488 MUNNY SHAMIMA K 3454 64TH ST WOODSIDE NY 11377
MLC161 10218012667 RENZI DOMINIC 380 CYPRESS CREEK CIRCLE OLDSMAR FL 34677
------------------------
51 Sale Total
647 Total with Merrill Lynch
830 Grand Total
<CAPTION>
Principal Cut-off Date First Initial Minimum Maximum
Balance at Principal Payment Maturity Mortgage Mortgage Mortgage Gross
Account Origination Balance Date Date Rate Rate Rate Margin
------- ----------- ------- ---- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
10218001739 106,250.00 106,118.76 12/1/96 11/1/96 10.375 10.375 16.375 7.750
10218003906 230,000.00 229,568.15 12/1/96 11/1/26 8.375 8.375 14.375 4.500
10218004676 170,000.00 170,000.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10218004793 68,700.00 68,678.64 3/1/97 2/1/27 11.625 10.625 17.625 7.250
10218005932 186,400.00 186,400.00 3/1/97 2/1/27 8.875 8.875 14.875 5.250
10218005955 153,000.00 152,930.49 2/1/97 1/1/27 9.875 9.875 15.875 6.250
10218006939 157,500.00 157,420.46 2/1/97 1/1/27 9.375 8.375 15.375 6.000
10218007069 130,500.00 130,500.00 4/1/97 3/1/27 8.875 8.875 14.875 5.000
10218007474 100,000.00 100,000.00 4/1/97 3/1/27 9.750 8.750 15.750 6.250
10218008063 102,600.00 102,546.82 3/1/97 2/1/27 9.250 9.250 15.250 5.875
10218008113 131,850.00 131,850.00 3/1/97 2/1/27 9.750 8.750 15.750 5.250
10218008115 252,000.00 252,000.00 4/1/97 3/1/27 9.875 8.875 15.875 6.000
10218008397 305,000.00 305,000.00 4/1/97 3/1/27 10.125 9.125 16.125 6.000
10218008529 74,000.00 73,969.78 2/1/97 1/1/27 10.375 10.375 16.375 7.000
10218008795 67,500.00 67,500.00 3/1/97 2/1/27 11.475 10.475 17.475 7.100
10218008932 112,410.00 112,410.00 3/1/97 2/1/27 10.375 9.375 16.375 6.000
10218009189 121,500.00 121,500.00 3/1/97 2/1/27 8.875 8.875 14.875 5.000
10218009207 178,500.00 178,500.00 3/1/97 2/1/27 11.000 10.000 17.000 6.500
10218009241 297,000.00 297,000.00 4/1/97 3/1/27 10.375 10.375 16.375 6.750
10218009441 216,750.00 216,750.00 4/1/97 3/1/27 10.125 10.125 16.125 7.750
10218009469 40,500.00 40,500.00 3/1/97 2/1/27 10.000 9.000 16.000 6.750
10218009770 89,600.00 89,600.00 4/1/97 3/1/27 11.875 10.875 17.875 6.625
10218009827 68,000.00 68,000.00 3/1/97 2/1/27 11.125 11.125 17.125 7.500
10218009963 79,900.00 79,900.00 3/1/97 2/1/27 11.000 10.000 17.000 7.750
10218010008 59,500.00 59,500.00 4/1/97 3/1/27 9.750 8.750 15.750 5.250
10218010031 80,000.00 80,000.00 3/1/97 2/1/27 11.000 10.000 17.000 7.250
10218010039 342,750.00 342,750.00 3/1/97 2/1/27 8.500 7.500 14.500 4.500
10218010078 96,000.00 96,000.00 4/1/97 3/1/27 12.250 11.250 18.250 7.250
10218010143 65,000.00 65,000.00 4/1/97 3/1/27 9.750 9.750 15.750 5.750
10218010185 189,750.00 189,750.00 3/1/97 2/1/27 8.625 7.625 14.625 3.750
10218010205 106,250.00 106,250.00 4/1/97 3/1/27 11.500 10.500 17.500 6.750
10218010255 105,750.00 105,750.00 4/1/97 3/1/27 8.875 8.875 14.875 5.250
10218010394 136,000.00 136,000.00 3/1/97 2/1/27 12.250 11.250 18.250 8.000
10218010428 57,600.00 57,600.00 4/1/97 3/1/27 12.000 11.000 18.000 7.000
10218010544 88,400.00 88,400.00 4/1/97 3/1/27 9.375 9.375 15.375 5.500
10218010592 144,500.00 144,356.24 12/1/96 11/1/26 11.375 11.375 17.375 8.625
10218010600 146,200.00 146,137.03 3/1/97 2/1/27 10.125 9.125 16.125 6.750
10218010610 72,250.00 72,250.00 4/1/97 3/1/27 10.625 9.625 16.625 7.250
10218010716 76,500.00 76,500.00 3/1/97 2/1/27 10.625 9.625 16.625 5.750
10218010774 82,000.00 82,000.00 4/1/97 3/1/27 11.000 10.000 17.000 6.500
10218010875 112,500.00 112,500.00 3/1/97 2/1/27 10.125 10.125 16.125 6.750
10218010912 73,600.00 73,600.00 4/1/97 3/1/27 11.500 11.500 17.500 7.500
10218011019 133,900.00 133,900.00 3/1/97 2/1/27 9.375 9.375 15.375 6.000
10218011336 55,000.00 55,000.00 4/1/97 3/1/27 9.000 8.000 15.000 4.500
10218011351 126,000.00 126,000.00 4/1/97 3/1/27 10.375 9.375 16.375 5.500
10218011516 300,000.00 300,000.00 4/1/97 3/1/27 9.875 9.875 15.875 6.250
10218011914 252,280.00 252,280.00 4/1/97 3/1/27 10.875 9.875 16.875 6.750
10218011999 146,700.00 146,700.00 4/1/97 3/1/27 10.500 9.500 16.500 5.750
10218012086 46,500.00 46,500.00 4/1/97 3/1/27 10.000 9.000 16.000 5.250
10218012488 344,250.00 344,250.00 3/1/97 2/1/27 11.750 10.750 17.750 7.500
10218012667 160,000.00 160,000.00 4/1/97 3/1/27 8.750 7.750 14.750 4.500
------------- ------------- ------ ------ ------ -----
7,038,640.00 7,037,616.37 10.085 9.470 16.085 6.127
75,473,052.00 75,455,302.55 10.242 9.543 16.242 6.108
98,978,097.00 98,952,659.50 10.261 9.548 16.261 6.103
</TABLE>
<PAGE>
Alliance Funding Company Page 1 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
BS22D 10216120478 JORDAN SIGMUND 214,400.00 SF 2,143.66
BS22D 10216125218 VANSCHENKBRILL ROBERT W 48,750.00 MF 414.37
BS22D 10216131608 HAUGSETH WILLIAM 126,000.00 SF 1,070.99
----------- ---------------- ---------- ---------
3 Sale Total 389,150.00 3,629.02
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10216120478 214,060.17 80.0 9/1/97 12.625 268,000.00 Y
10216125218 48,607.44 75.0 9/1/97 10.625 65,000.00 Y
10216131608 125,755.62 90.0 4/1/97 9.625 140,000.00 Y
---------- ---- ------ -----------
388,423.23 82.6 11.403 473,000.00
</TABLE>
<PAGE>
Alliance Funding Company Page 2 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
BS27 10216121278 HACHEM MOHAMAD K 112,500.00 SF 1,039.03
BS27 10216128442 GIZA RONALD S JR 63,750.00 SF 553.57
BS27 10216130544 MCLAUGHLIN LUKE F III 120,000.00 SF 954.77
BS27 10216130641 WIMBROW NORMAN R JR 56,000.00 SF 475.99
BS27 10216132822 CRATER DARRYL 101,700.00 SF 827.47
BS27 10216133048 O'NEIL LEONARD A 56,800.00 SF 562.49
BS27 10216135176 DUKE LISA WHITEMAN 126,000.00 SF 991.24
BS27 10216135476 HILLER DAVID K 150,450.00 SF 1,418.58
BS27 10216135787 SANDOLO CLAUDIO 40,000.00 SF 362.16
BS27 10216135824 LERCH BARBARA S 391,000.00 SF 3,323.46
BS27 10216135881 JACKSON NELSON 63,900.00 SF 584.52
BS27 10216135946 MALLOTT BEVERLY A 88,000.00 SF 788.57
BS27 10216135970 KUNZ ARTHUR DANIEL 44,820.00 SF 482.70
BS27 10216136196 PASSMORE MICHAEL A 91,800.00 SF 822.62
BS27 10216136335 BEST BONNIE M 81,200.00 SF 843.05
BS27 10216136337 MURRAY CHERYL V 24,500.00 MF 197.13
BS27 10216136424 KUECHLE COLLEEN A 78,600.00 SF 741.11
BS27 10216136543 LOWERY JANE E 64,000.00 SF 497.79
BS27 10216137146 CANTU JOSE G 94,500.00 SF 899.95
BS27 10216137956 CWIKLINSKI ROBERT W 87,550.00 SF 883.74
BS27 10216138002 PALCAU VALERICA 95,200.00 SF 817.92
BS27 10216138140 PINCKNEY JOSIAH 134,250.00 SF 1,116.62
BS27 10216138171 GREER SIDNEY A 119,000.00 SF 1,122.04
BS27 10216138217 ALLEN GEORGE W 108,000.00 SF 977.84
BS27 10216138328 FOSTER GLENN A 118,400.00 SF 1,072.00
BS27 10216138386 THELEN LUCY M 90,400.00 SF 727.38
BS27 10216138395 PERKINS DONALD 45,000.00 SF 428.55
BS27 10216138416 ADAMS DAVID G 215,100.00 SF 1,927.51
BS27 10216138483 STEELE LARRY L 123,250.00 SF 1,244.10
BS27 10216138517 WATSON GEORGE S 81,000.00 SF 840.98
BS27 10216138530 HARPER II PHILIP E 45,000.00 SF 428.55
BS27 10216138535 WORMICK JR JAMES E 68,800.00 SF 734.27
BS27 10216138573 BROVONT SHAWNA 64,800.00 SF 580.67
BS27 10216138609 GLUNT LINDA M 104,000.00 SF 883.99
BS27 10216138674 GRACIA NIDIA E 105,600.00 SF 1,127.02
BS27 10216138681 RENFRO CORTEZ 84,100.00 SF 792.97
BS27 10216138689 SISLEY JENNIFER 161,500.00 SF 1,630.20
BS27 10216138770 DIAZ RAMON L 172,000.00 MF 1,605.59
BS27 10216138773 HUNZIKER LYNN M 81,000.00 MF 710.83
BS27 10216138780 AL-YUNISI HASSAN 73,800.00 MF 613.83
BS27 10216138783 CUMMINS MARK 84,800.00 SF 659.57
BS27 10216138797 LAWLESS LLOYD T 107,200.00 SF 1,133.72
BS27 10216138860 PRICE EDWARD A 77,400.00 SF 737.10
BS27 10216138934 MORRIS ANGELA V 276,200.00 SF 2,222.37
BS27 10216138936 MODJESKI CHRISTOPHER 175,100.00 SF 1,801.10
BS27 10216138954 REYNOLDS CONNIE E 71,000.00 SF 616.53
BS27 10216138956 HOUSSAIKY RIAD 95,200.00 MF 740.46
BS27 10216138958 KARIM AHMAD 64,000.00 SF 509.21
BS27 10216138962 ALFATLAWI AMJAD 92,700.00 MF 771.03
BS27 10216138997 MEDINA HENRY R 78,200.00 SF 781.87
BS27 10216139015 MARYN FRANK M 187,500.00 SF 1,662.80
BS27 10216139061 SCANAGATTA CLARA A 358,250.00 SF 3,310.58
BS27 10216139106 STEIN DEENA A 114,300.00 SF 1,024.24
BS27 10216139114 KERPAN LOUIS J 84,000.00 SF 713.99
BS27 10216139129 VIGNIERI ANTHONY R 202,300.00 SF 2,003.36
BS27 10216139133 JACQUES RICHARD EDWARD 86,400.00 SF 822.81
BS27 10216139166 SASSER III WALTER B 386,400.00 SF 3,005.38
BS27 10216139216 ZEYEN KEITH B 180,000.00 SF 1,529.98
BS27 10216139217 RODRIGUEZ MARIA 156,000.00 MF 1,369.01
BS27 10216139229 SEIBERT MARVIN D 84,000.00 SF 675.88
BS27 10216139235 PLACKE ROBERT G 105,000.00 SF 940.91
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10216121278 112,124.46 90.0 7/1/97 10.625 125,000.00 Y
10216128442 63,567.21 79.6 9/1/97 10.875 80,000.00 Y
10216130544 119,658.64 78.4 4/1/97 8.875 153,000.00 Y
10216130641 55,949.17 66.6 7/1/97 9.625 84,000.00 Y
10216132822 101,481.04 90.0 4/1/97 9.125 113,000.00 Y
10216133048 56,745.00 80.0 5/1/97 11.500 71,000.00 Y
10216135176 125,754.47 80.0 11/1/98 8.750 157,500.00 Y
10216135476 150,394.87 85.0 7/1/97 10.875 177,000.00 Y
10216135787 39,967.40 68.9 6/1/97 10.375 58,000.00 N
10216135824 391,000.00 85.0 2/1/99 9.625 460,000.00 Y
10216135881 63,874.61 90.0 1/1/99 10.500 71,000.00 Y
10216135946 87,925.88 80.0 1/1/99 10.250 110,000.00 Y
10216135970 44,791.54 45.0 7/1/97 12.625 99,600.00 Y
10216136196 91,800.00 90.0 2/1/99 10.250 102,000.00 Y
10216136335 81,200.00 64.9 2/1/99 12.125 125,000.00 Y
10216136337 24,486.62 70.0 2/1/99 9.000 35,000.00 N
10216136424 78,600.00 84.5 2/1/99 10.875 93,000.00 Y
10216136543 63,962.21 71.1 1/1/99 8.625 90,000.00 Y
10216137146 94,397.97 90.0 12/1/98 11.000 105,000.00 Y
10216137956 87,496.78 85.0 1/1/99 11.750 103,000.00 Y
10216138002 95,155.58 74.9 7/1/97 9.750 127,000.00 Y
10216138140 134,182.21 81.3 7/1/97 9.375 165,000.00 Y
10216138171 118,955.44 85.0 1/1/99 10.875 140,000.00 Y
10216138217 107,955.91 67.5 1/1/99 10.375 160,000.00 Y
10216138328 118,400.00 80.0 8/1/97 10.375 148,000.00 Y
10216138386 90,400.00 80.0 2/1/99 9.000 113,000.00 Y
10216138395 44,912.50 66.1 1/1/99 11.000 68,000.00 Y
10216138416 215,100.00 90.0 2/1/99 10.250 239,000.00 Y
10216138483 123,212.72 85.0 1/1/99 11.750 145,000.00 Y
10216138517 81,000.00 58.6 2/1/99 12.125 138,000.00 Y
10216138530 44,983.95 52.9 2/1/99 11.000 85,000.00 Y
10216138535 68,800.00 80.0 2/1/99 12.500 86,000.00 Y
10216138573 64,772.83 90.0 1/1/99 10.250 72,000.00 Y
10216138609 103,950.18 89.9 2/1/99 9.625 115,590.00 Y
10216138674 105,500.00 80.0 1/1/99 12.500 132,000.00 Y
10216138681 84,100.00 84.9 2/1/99 10.875 99,000.00 Y
10216138689 161,451.15 85.0 1/1/99 11.750 190,000.00 Y
10216138770 171,935.24 80.0 1/1/99 10.750 215,000.00 Y
10216138773 80,964.17 90.0 1/1/99 10.000 90,000.00 Y
10216138780 73,762.73 90.0 7/1/97 9.375 82,000.00 Y
10216138783 84,716.50 80.0 1/1/99 8.625 106,000.00 Y
10216138797 107,171.78 80.0 1/1/99 12.375 134,000.00 Y
10216138860 77,359.50 90.0 1/1/99 11.000 86,000.00 Y
10216138934 276,049.13 84.9 1/1/99 9.000 325,000.00 Y
10216138936 174,999.30 85.0 1/1/99 12.000 206,000.00 Y
10216138954 71,000.00 52.5 8/1/97 9.875 135,000.00 Y
10216138956 95,087.18 79.3 1/1/99 8.625 120,000.00 Y
10216138958 63,927.98 78.0 7/1/97 8.875 82,000.00 Y
10216138962 92,653.19 90.0 7/1/97 9.375 103,000.00 Y
10216138997 78,151.15 85.0 1/1/99 11.625 92,000.00 Y
10216139015 187,419.24 75.0 7/1/97 10.125 250,000.00 Y
10216139061 358,111.43 89.9 1/1/99 10.625 398,085.00 Y
10216139106 114,300.00 90.0 2/1/99 10.250 127,000.00 Y
10216139114 83,959.76 80.0 2/1/99 9.625 105,000.00 Y
10216139129 202,104.18 85.0 12/1/98 11.500 238,000.00 Y
10216139133 86,369.19 79.6 7/1/97 11.000 108,500.00 Y
10216139166 386,171.87 80.0 7/1/97 8.625 483,000.00 Y
10216139216 180,000.00 78.2 2/1/99 9.625 230,000.00 Y
10216139217 155,930.99 74.2 1/1/99 10.000 210,000.00 Y
10216139229 84,000.00 79.6 2/1/99 9.000 105,500.00 Y
10216139235 105,000.00 89.9 2/1/99 10.250 116,700.00 Y
</TABLE>
<PAGE>
Alliance Funding Company Page 3 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
BS27 10216139252 GOULDY CATHERINE V 199,750.00 SF 1,864.63
BS27 10216139271 CHAPMAN JEFFREY J 112,500.00 SF 1,039.61
BS27 10216139287 DERR ROBIN 82,400.00 SF 871.44
BS27 10216139398 FOSTER ARZEL L 227,500.00 SF 2,362.01
BS27 10216139407 GRIFFIN LARRY 153,000.00 MF 1,559.07
BS27 10216139409 ALEXANDER WILLYE J 60,300.00 SF 469.01
BS27 10216139504 YOUNES SAHAR 62,500.00 SF 519.84
BS27 10216139549 THOMPSON JON ALLAN 130,000.00 SF 1,022.71
BS27 10216139565 ZIMKAS BRIAN 81,500.00 SF 590.93
BS27 10216139574 MAY NANCY 63,000.00 SF 576.29
BS27 10216139597 CORNE RICHARD J 100,000.00 SF 905.41
BS27 10216139637 MARTIN KIM H 86,700.00 SF 817.49
BS27 10216139664 SEPTOFF LORIN 152,000.00 SF 1,607.51
BS27 10216139666 HELLE PETER R 155,700.00 SF 1,211.02
BS27 10216139691 LIEBRICH DAVID J 335,750.00 SF 2,823.17
BS27 10216139809 MAZUR ROBERT A 85,500.00 SF 766.17
BS27 10216139845 MYLES ALICE 168,000.00 SF 1,568.25
BS27 10216139856 KURTZ RICHARD J 110,600.00 SF 991.09
BS27 10216139864 JOUNI MOHAMAD 73,500.00 SF 693.02
BS27 10216139877 HILTZ MARK J 78,000.00 SF 757.58
BS27 10216139952 MOORE ELLEN 47,000.00 SF 378.17
BS27 10216139962 HAY JOSEPH C 192,800.00 SF 1,656.45
BS27 10216139970 WOODWORTH-SULLA LINDA C 119,700.00 SF 1,072.63
BS27 10216139982 AMASIO PAULA F 126,400.00 SF 1,349.01
BS27 10216139994 TARR VIRGINIA 175,000.00 SF 1,455.56
BS27 10216140149 TURNER CARL D 112,200.00 SF 1,132.56
BS27 10216140161 HAUSERMAN JODEANE H 50,000.00 SF 362.53
BS27 10216140191 STEWART GRANT 65,000.00 SF 552.49
BS27 10216140207 MARTINO ANTHONY W 95,500.00 SF 909.47
BS27 10216140291 HENDERSON JOSEPH H 178,700.00 SF 1,855.34
BS27 10216140362 MACK ALYSE M 80,700.00 SF 649.33
BS27 10216140364 NEWSON CLARENCE 21,000.00 SF 199.99
BS27 10216140441 GREENFIELD NEAL W 106,200.00 SF 912.42
BS27 10216140467 BAKER DUAYNE L 156,400.00 SF 1,459.96
BS27 10216140542 CASTRO LUIS M 126,600.00 SF 1,134.46
BS27 10216140545 GUEORGUIEV MILENA 120,700.00 SF 1,126.71
BS27 10216140595 ARFAN MAE 100,800.00 MF 875.30
BS27 10216140625 CHERRY BRYAN J 166,400.00 SF 1,584.67
BS27 10216140658 LAVIGNE DONNA L 116,100.00 SF 882.44
BS27 10216140685 ALI TAHRIR 71,900.00 SF 598.03
BS27 10216140701 BROOKE JOHN C 350,000.00 SF 3,103.88
BS27 10216140717 RAPPEL LINDA J 190,000.00 SF 1,597.62
BS27 10216140915 MOUSOULEAS BONITA E 24,500.00 MF 210.49
BS27 10216141003 BAGHDADI MOHAMAD 115,600.00 SF 858.33
BS27 10216141005 BITAR SLEIMAN 66,300.00 SF 625.14
BS27 10216141031 JACKSON HAL D 65,500.00 SF 605.28
BS27 10216141189 PIERSCIONEK JANUSZ 153,000.00 SF 1,272.58
BS27 10216141252 STEINEPREIS LISA A 57,000.00 SF 474.10
BS27 10216141257 LYMAN JACK N 157,500.00 SF 1,338.73
BS27 10216141435 BRIGANTE JOSEPH 109,200.00 SF 1,133.76
----------- ----------- ------------- ----------
111 Sale Total 13,129,120.00 118,048.38
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10216139252 199,750.00 85.0 2/1/99 10.750 235,000.00 Y
10216139271 112,500.00 90.0 2/1/99 10.625 125,000.00 Y
10216139287 82,378.31 80.0 1/1/99 12.375 103,000.00 Y
10216139398 227,435.70 65.0 2/1/99 12.125 350,000.00 Y
10216139407 152,954.99 85.0 1/1/99 11.875 180,000.00 Y
10216139409 60,197.54 90.0 7/1/97 8.625 67,000.00 Y
10216139504 62,468.44 89.9 7/1/97 9.375 69,500.00 Y
10216139549 130,000.00 70.2 2/1/99 8.750 185,000.00 Y
10216139565 81,500.00 67.9 2/1/99 7.875 120,000.00 Y
10216139574 62,974.96 70.0 1/1/99 10.500 90,000.00 Y
10216139597 100,000.00 80.0 8/1/97 10.375 125,000.00 Y
10216139637 86,668.23 85.0 7/1/97 10.875 102,000.00 Y
10216139664 152,000.00 80.0 2/1/99 12.375 190,000.00 Y
10216139666 155,515.48 79.8 7/1/97 8.625 195,000.00 Y
10216139691 335,750.00 85.0 2/1/99 9.500 395,000.00 Y
10216139809 85,427.98 90.0 1/1/99 10.250 95,000.00 Y
10216139845 168,000.00 80.0 2/1/99 10.750 210,000.00 Y
10216139856 110,600.00 89.1 2/1/99 10.250 124,000.00 Y
10216139864 73,472.09 83.5 1/1/99 10.875 88,000.00 Y
10216139877 77,822.46 80.0 7/1/97 11.250 97,500.00 Y
10216139952 46,974.33 83.9 2/1/99 9.000 56,000.00 Y
10216139962 192,710.05 80.0 2/1/99 9.750 241,000.00 Y
10216139970 119,647.44 90.0 2/1/99 10.250 133,000.00 Y
10216139982 126,367.66 80.0 1/1/99 12.500 158,000.00 Y
10216139994 174,911.63 76.0 1/1/99 9.375 230,000.00 Y
10216140149 112,148.63 85.0 1/1/99 11.750 132,000.00 Y
10216140161 49,965.60 56.1 8/1/97 7.875 89,000.00 Y
10216140191 64,937.47 65.0 2/1/99 9.625 100,000.00 Y
10216140207 95,500.00 64.9 8/1/97 11.000 147,000.00 Y
10216140291 178,700.00 64.9 2/1/99 12.125 275,000.00 Y
10216140362 80,700.00 84.9 2/1/99 9.000 95,000.00 Y
10216140364 21,000.00 60.0 2/1/99 11.000 35,000.00 N
10216140441 106,150.46 84.9 2/1/99 9.750 125,000.00 Y
10216140467 156,400.00 85.0 2/1/99 10.750 184,000.00 Y
10216140542 126,600.00 84.9 2/1/99 10.250 149,000.00 Y
10216140545 120,700.00 85.0 2/1/99 10.750 142,000.00 Y
10216140595 100,754.20 89.2 1/1/99 9.875 113,000.00 Y
10216140625 166,400.00 80.0 2/1/99 11.000 208,000.00 Y
10216140658 116,100.00 90.0 8/1/97 8.375 129,000.00 Y
10216140685 71,900.00 89.9 8/1/97 9.375 79,900.00 Y
10216140701 350,000.00 74.4 8/1/97 10.125 470,000.00 Y
10216140717 190,000.00 79.4 2/1/99 9.500 239,000.00 Y
10216140915 24,500.00 70.0 2/1/99 9.750 35,000.00 N
10216141003 115,600.00 85.0 8/1/97 8.125 136,000.00 Y
10216141005 66,300.00 83.9 2/1/99 10.875 79,000.00 Y
10216141031 65,500.00 78.9 8/1/97 10.625 83,000.00 Y
10216141189 153,000.00 90.0 8/1/97 9.375 170,000.00 Y
10216141252 57,000.00 55.6 8/1/97 9.375 102,500.00 Y
10216141257 157,263.28 90.0 2/1/99 9.625 175,000.00 Y
10216141435 109,169.62 80.0 8/1/97 12.125 136,500.00 Y
------------- ---- ------ -------------
13,123,471.40 81.1 10.281 16,375,375.00
</TABLE>
<PAGE>
Alliance Funding Company Page 4 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
BS28 10216132233 SPELMAN PATRICK J 57,000.00 SF 484.49
BS28 10216135371 KOBESKE JAMES G 85,000.00 SF 907.17
BS28 10216135646 URBAN WILLIAM 322,100.00 SF 3,128.43
BS28 10216136382 AMES CHRISTOPHER G 272,000.00 SF 2,745.59
BS28 10216136411 FRANCISCO ANGELINA 238,000.00 SF 2,266.53
BS28 10216136431 IMMEL STEVEN M 52,500.00 SF 408.34
BS28 10216137068 TOOLEY LORI K 324,700.00 SF 2,554.42
BS28 10216137511 JORDAN CAROLYN 92,000.00 SF 981.88
BS28 10216137973 DARRAGH DAVID EUGENE 75,600.00 SF 719.96
BS28 10216138038 MURPHY LYNN J 288,150.00 SF 2,422.92
BS28 10216138111 FRITZ LU 289,000.00 SF 2,697.76
BS28 10216138169 LEPRICH THOMAS E 82,400.00 SF 863.47
BS28 10216138343 SCHARTZ DANIEL C 36,000.00 SF 280.00
BS28 10216138490 MERCER BRADFORD D 259,000.00 SF 2,515.57
BS28 10216138547 BROWN CLINTON G 157,250.00 SF 1,602.38
BS28 10216138558 ALHABHAB JABER 25,000.00 SF 201.16
BS28 10216138650 BONI CARL V 157,250.00 SF 1,482.69
BS28 10216138761 CAMBA-REGALA AGNES 225,000.00 MF 2,185.34
BS28 10216138769 BLANCHARD DARYL W 106,200.00 SF 854.51
BS28 10216138811 WHITE DOUGLAS A 200,000.00 SF 1,904.65
BS28 10216138838 COOK VIOLA 51,000.00 SF 410.36
BS28 10216138846 KENNEDY PATRICK M 44,000.00 SF 435.73
BS28 10216138924 PARKER BEN S 108,000.00 SF 987.92
BS28 10216139076 PERKINS CARRIE V 33,700.00 SF 320.93
BS28 10216139135 FOWLKES RONNIE R 58,100.00 SF 520.63
BS28 10216139231 GILLIAM OLUFUNKE 195,500.00 SF 1,898.82
BS28 10216139256 HILLIS RAYMOND E 260,000.00 SF 2,186.22
BS28 10216139263 GRIFFITH ANDREA A 131,250.00 SF 997.60
BS28 10216139313 BRADY ALAN S 153,700.00 SF 1,463.72
BS28 10216139451 MAURICH STEPHEN A 227,800.00 SF 2,105.09
BS28 10216139501 OUZA RIMA 69,600.00 SF 597.97
BS28 10216139538 LILJENQUIST BYRON E 477,000.00 SF 4,186.02
BS28 10216139599 ALGHAZALY FAEK 54,000.00 SF 449.14
BS28 10216139602 WITCZAK EDWARD M 73,000.00 SF 654.15
BS28 10216139709 HARRIS NELDA K 232,475.00 SF 2,170.11
BS28 10216139853 TRUESDILL MICHAEL P 25,200.00 SF 216.51
BS28 10216139920 JAURIGUE RAMON R E 72,800.00 SF 659.14
BS28 10216139956 HERNANDEZ ENRIQUE 134,000.00 SF 1,188.34
BS28 10216139964 SOBH AHMAD S 64,000.00 SF 514.96
BS28 10216139974 DAVIES GERALDINE 63,900.00 SF 632.80
BS28 10216140073 WILSON DOUGLAS M 294,000.00 SF 2,182.94
BS28 10216140079 TRAN HIEN TRONG 131,900.00 SF 1,109.09
BS28 10216140142 HOLLAND JR ROBERT G 230,000.00 SF 1,933.96
BS28 10216140201 WISNIEWSKI ROBERT B 144,000.00 SF 1,317.22
BS28 10216140210 HOQUE SYED N 25,600.00 MF 263.32
BS28 10216140695 KLUGER ALAN M 183,700.00 SF 1,629.10
BS28 10216140720 BRINK JON S 172,000.00 SF 1,769.21
BS28 10216140728 MICHEL MARY K 65,000.00 CD 505.56
BS28 10216140738 BIGAM JR CLYDE R 96,000.00 SF 869.19
BS28 10216140886 RATHBUN SCOTT 95,400.00 SF 854.88
BS28 10216140957 WILEY SARAH J 77,600.00 SF 688.17
BS28 10216140963 SPENCER GREGORY 121,600.00 SF 978.42
BS28 10216140968 WILLARD TOM F 75,000.00 SF 603.47
BS28 10216140986 RICHARDSON RICHARD L 80,000.00 SF 679.99
BS28 10216141039 SHABECK DENNIS M 157,500.00 SF 1,267.28
BS28 10216141052 WITT KARIE L 161,500.00 SF 1,522.77
BS28 10216141127 HASTINGS ELDON 180,000.00 SF 1,697.20
BS28 10216141147 FAESTEL CATHERINE D 496,000.00 SF 4,537.11
BS28 10216141262 HAGERMAN JAMES M 125,000.00 SF 1,143.43
BS28 10216141313 MCDONALD DANA 54,000.00 SF 565.86
BS28 10216141333 BURRELL DONALD E 120,000.00 SF 1,108.92
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10216132233 56,972.70 69.5 7/1/97 9.625 82,000.00 N
10216135371 84,911.62 60.7 5/1/97 12.500 140,000.00 Y
10216135646 321,991.26 84.9 1/1/99 11.250 379,000.00 Y
10216136382 271,917.74 81.9 1/1/99 11.750 332,000.00 Y
10216136411 237,915.14 70.0 1/1/99 11.000 340,000.00 Y
10216136431 52,447.34 75.0 1/1/99 8.625 70,000.00 Y
10216137068 324,700.00 87.7 2/1/99 8.750 370,000.00 Y
10216137511 92,000.00 80.0 2/1/99 12.500 115,000.00 Y
10216137973 75,573.04 90.0 2/1/99 11.000 84,000.00 Y
10216138038 288,150.00 85.0 2/1/99 9.500 339,000.00 Y
10216138111 289,000.00 85.0 2/1/99 10.750 340,000.00 Y
10216138169 82,377.70 74.9 2/1/99 12.250 110,000.00 Y
10216138343 35,978.75 80.0 8/1/97 8.625 45,000.00 Y
10216138490 259,000.00 70.9 2/1/99 11.250 365,000.00 Y
10216138547 157,156.92 85.0 12/1/98 11.875 185,000.00 Y
10216138558 24,986.34 69.4 1/1/99 9.000 36,000.00 Y
10216138650 157,250.00 85.0 2/1/99 10.875 185,000.00 Y
10216138761 225,000.00 84.9 2/1/99 11.250 265,000.00 Y
10216138769 106,141.99 84.9 2/1/99 9.000 125,000.00 Y
10216138811 200,000.00 80.0 2/1/99 11.000 250,000.00 Y
10216138838 50,972.14 85.0 2/1/99 9.000 60,000.00 Y
10216138846 44,000.00 80.0 2/1/99 11.500 55,000.00 Y
10216138924 108,000.00 61.0 2/1/99 10.500 177,000.00 Y
10216139076 33,700.00 74.8 2/1/99 11.000 45,000.00 Y
10216139135 58,075.64 85.4 2/1/99 10.250 68,000.00 Y
10216139231 195,500.00 85.0 2/1/99 11.250 230,000.00 Y
10216139256 260,000.00 80.0 2/1/99 9.500 325,000.00 Y
10216139263 131,250.00 75.0 2/1/99 8.375 175,000.00 Y
10216139313 153,700.00 74.9 2/1/99 11.000 205,000.00 Y
10216139451 227,800.00 85.0 2/1/99 10.625 268,000.00 Y
10216139501 69,567.50 71.0 7/1/97 9.750 98,000.00 Y
10216139538 477,000.00 90.0 2/1/99 10.000 530,000.00 Y
10216139599 53,971.88 90.0 7/1/97 9.375 60,000.00 Y
10216139602 73,000.00 89.9 2/1/99 10.250 81,200.00 Y
10216139709 232,475.00 85.0 2/1/99 10.750 273,500.00 Y
10216139853 25,200.00 70.0 2/1/99 9.750 36,000.00 Y
10216139920 72,800.00 80.0 2/1/99 10.375 91,000.00 Y
10216139956 134,000.00 84.8 2/1/99 10.125 158,000.00 Y
10216139964 63,965.04 80.0 1/1/99 9.000 80,000.00 Y
10216139974 63,879.58 78.8 1/1/99 11.500 81,000.00 Y
10216140073 294,000.00 66.0 2/1/99 8.125 445,000.00 N
10216140079 131,835.12 79.9 2/1/99 9.500 165,000.00 Y
10216140142 230,000.00 73.0 2/1/99 9.500 315,000.00 Y
10216140201 144,000.00 90.0 3/1/99 10.500 160,000.00 Y
10216140210 25,592.68 80.0 2/1/99 12.000 32,000.00 Y
10216140695 183,700.00 74.9 8/1/97 10.125 245,000.00 Y
10216140720 172,000.00 80.0 2/1/99 12.000 215,000.00 Y
10216140728 65,000.00 68.4 2/1/99 8.625 95,000.00 Y
10216140738 96,000.00 80.0 8/1/97 10.375 120,000.00 Y
10216140886 95,360.00 90.0 2/1/99 10.250 106,000.00 Y
10216140957 77,600.00 80.0 8/1/97 10.125 97,000.00 Y
10216140963 121,600.00 80.0 2/1/99 9.000 152,000.00 Y
10216140968 74,959.03 68.1 2/1/99 9.000 110,000.00 Y
10216140986 80,000.00 51.2 2/1/99 9.625 156,000.00 Y
10216141039 157,500.00 90.0 2/1/99 9.000 175,000.00 Y
10216141052 161,500.00 85.0 8/1/97 10.875 190,000.00 Y
10216141127 179,934.05 80.0 8/1/97 10.875 225,000.00 Y
10216141147 496,000.00 80.0 3/1/99 10.500 620,000.00 Y
10216141262 125,000.00 77.1 2/1/99 10.500 162,000.00 Y
10216141313 54,000.00 56.2 2/1/99 12.250 96,000.00 Y
10216141333 119,953.58 80.0 8/1/97 10.625 150,000.00 Y
</TABLE>
<PAGE>
Alliance Funding Company Page 5 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
BS28 10216141344 HACKWORTH MELVIN C 87,300.00 SF 782.30
BS28 10216141384 ROKOS WARREN 122,900.00 SF 1,124.21
BS28 10216141579 MCCLOUD BRENDA 85,000.00 MF 761.69
BS28 10216141580 DECKER MARGIE ANN 123,200.00 SF 991.30
BS28 10216141868 MIFSUD DENISE M 206,200.00 SF 1,983.19
BS28 10216141986 JANKOVIC DRAGAN 87,700.00 MF 885.25
BS28 10216142175 BRADLEY-KEITH LATANYA 176,000.00 SF 1,702.74
BS28 10216142246 ALI MOUSA 139,500.00 SF 1,289.12
----------- -------------------------- ------------- ----------
69 Sale Total 9,986,775.00 90,550.31
183 Total with Banco Santander 23,505,045.00 212,227.71
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10216141344 87,300.00 90.0 2/1/99 10.250 97,000.00 Y
10216141384 122,900.00 89.9 2/1/99 10.500 136,630.00 Y
10216141579 84,926.04 70.8 2/1/99 10.250 120,000.00 Y
10216141580 123,200.00 84.9 2/1/99 9.000 145,000.00 Y
10216141868 206,128.46 74.9 2/1/99 11.125 275,000.00 Y
10216141986 87,700.00 64.9 2/1/99 11.750 135,000.00 Y
10216142175 176,000.00 80.0 9/1/97 11.200 220,000.00 Y
10216142246 139,446.04 90.0 8/1/97 10.625 155,000.00 Y
------------- ---- ------ --------------
9,985,462.32 80.3 10.381 12,568,330.00
23,497,356.95 80.8 10.342 29,416,705.00
</TABLE>
<PAGE>
Alliance Funding Company Page 6 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
ML156 10216134289 OVERTON ROBERT 72,000.00 SF 706.15
ML156 10216135114 ROGERS JOHN C 44,000.00 SF 435.73
ML156 10216135254 MEITZ GERALD C JR 130,200.00 SF 1,047.62
ML156 10216135853 BARNES DENNIS M 157,200.00 SF 1,222.69
ML156 10216135939 BOYD CREOLA 86,700.00 SF 817.49
ML156 10216135965 RAMOS MELINDA A 74,700.00 SF 634.94
ML156 10216136352 CORREALE JAMES JR 37,500.00 SF 374.94
ML156 10216136425 RYMER TODD A 97,200.00 SF 871.01
ML156 10216136653 JOHNSON CRAIG B 52,700.00 SF 496.90
ML156 10216137278 WURZ DONNA 92,800.00 SF 918.99
ML156 10216137539 DOMURATH JR SIEGFRIED E 89,600.00 SF 696.90
ML156 10216137631 REHM RICHARD 101,500.00 SF 909.54
ML156 10216137638 TAGGART MARION F 64,000.00 MF 497.79
ML156 10216137833 TAYLOR DON W 90,000.00 SF 773.24
ML156 10216138041 PERGESON LOYD 76,500.00 SF 650.24
ML156 10216138227 NGUYEN CAROL 156,800.00 SF 1,537.84
ML156 10216138258 GRAVES CARL M 112,000.00 SF 1,098.46
ML156 10216138282 CARROLL LAWRENCE E 54,900.00 SF 481.79
ML156 10216138295 WINKLE CALVIN R VAN 118,800.00 SF 1,009.79
ML156 10216138332 RABANAL ALBERT LUCAS 122,560.00 SF 1,202.03
ML156 10216138336 LUTZ FREDRIC R 154,800.00 SF 1,301.64
ML156 10216138383 SMITH CHARLES E 22,500.00 SF 214.27
ML156 10216138468 COLLINS WHITFIELD J 140,000.00 SF 1,177.20
ML156 10216138473 CHRISTENSEN CHRISTINE D 88,000.00 SF 905.18
ML156 10216138494 MCCARTY CALVIN 135,900.00 SF 1,192.62
ML156 10216138528 MENARD OLIVER J 155,200.00 SF 1,207.13
ML156 10216138574 MOORE JAMES R 40,000.00 SF 340.00
ML156 10216138676 DAINES BRIAN WILLIAM 30,000.00 MF 233.34
ML156 10216138683 GONZALES RICHARD J 157,700.00 SF 1,486.94
ML156 10216138719 BEACH DANIEL T 140,800.00 SF 1,287.95
ML156 10216138728 GRAVES EDGAR L 145,000.00 SF 1,102.10
ML156 10216138746 BROWN MARY E 51,000.00 SF 410.36
ML156 10216138778 FOOTIT MICHAEL J 83,600.00 SF 749.14
ML156 10216138830 MCCLOSKEY PATRICK J 109,600.00 SF 1,074.92
ML156 10216138861 KHORI ZIAD T 21,600.00 SF 222.18
ML156 10216138881 NAUDE EDUARDO J 99,450.00 CD 928.35
ML156 10216138906 FERNANDEZ JIMMY L 58,875.00 SF 447.49
ML156 10216138931 BROWN MARY A 46,700.00 SF 440.33
ML156 10216138971 SORENSEN MARILYN DIANE 63,750.00 SF 565.35
ML156 10216138994 STOCKER JOHN A 144,000.00 SF 1,210.83
ML156 10216139006 WING DARRELL R 72,250.00 SF 674.44
ML156 10216139113 BOHAC WILLIAM P 58,600.00 SF 498.09
ML156 10216139145 RUSSELL JIM D 199,750.00 SF 2,016.30
ML156 10216139167 FORGET ALFONSO G 148,500.00 SF 1,303.19
ML156 10216139172 JEVICKA MILENA 106,250.00 SF 991.82
ML156 10216139254 HOOBYAR LUTHER THOMAS 195,300.00 SF 1,713.90
ML156 10216139258 VALDOVINO CESAR 91,760.00 SF 771.57
ML156 10216139323 BONNI ANTHONY M 100,800.00 SF 1,036.84
ML156 10216139368 RUIZ PEDRO 292,000.00 SF 2,725.77
ML156 10216139467 BROWN DAVID G 75,150.00 SF 638.77
ML156 10216139500 RODRIGUEZ EFRAIN V 126,000.00 MF 1,082.53
ML156 10216139541 PEARSON BARBARA M 141,600.00 SF 1,190.65
ML156 10216139554 CHAMBERS RICHARD E 118,150.00 SF 1,091.82
ML156 10216139616 DILWORTH ASAEL 60,400.00 SF 621.28
ML156 10216139632 HESS PAUL M 115,400.00 SF 1,002.07
ML156 10216139649 BORTNIKER DORIS F 46,150.00 SF 430.80
ML156 10216139706 DEPAZ GUILLERMO 80,500.00 MF 676.89
ML156 10216139842 GILNA DEREK A 50,000.00 SF 429.58
ML156 10216139882 HUTTON LESLIE E 64,600.00 SF 603.03
ML156 10216139993 BROOKS-WEIK BRENDA K 132,000.00 SF 1,244.61
ML156 10216139997 DOOLEY JAMES E 120,000.00 SF 987.21
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10216134289 72,000.00 80.0 2/1/99 11.375 90,000.00 Y
10216135114 44,000.00 80.0 2/1/99 11.500 55,000.00 Y
10216135254 130,200.00 70.0 2/1/99 9.000 186,000.00 Y
10216135853 157,200.00 84.9 2/1/99 8.625 185,000.00 Y
10216135939 86,700.00 85.0 2/1/99 10.875 102,000.00 Y
10216135965 74,664.22 90.0 2/1/99 9.625 83,000.00 Y
10216136352 37,500.00 75.0 2/1/99 11.625 50,000.00 Y
10216136425 97,159.24 90.0 2/1/99 10.250 108,000.00 Y
10216136653 52,700.00 85.0 2/1/99 10.875 62,000.00 Y
10216137278 92,800.00 80.0 2/1/99 11.500 116,000.00 Y
10216137539 89,547.10 80.0 2/1/99 8.625 112,000.00 Y
10216137631 101,500.00 70.0 2/1/99 10.250 145,000.00 N
10216137638 64,000.00 80.0 2/1/99 8.625 80,000.00 Y
10216137833 89,958.01 74.7 2/1/99 9.750 120,400.00 Y
10216138041 76,500.00 90.0 2/1/99 9.625 85,000.00 Y
10216138227 156,800.00 80.0 2/1/99 11.375 196,000.00 Y
10216138258 111,963.21 80.0 2/1/99 11.375 140,000.00 Y
10216138282 54,900.00 90.0 2/1/99 10.000 61,000.00 Y
10216138295 118,743.09 90.0 2/1/99 9.625 132,000.00 Y
10216138332 122,560.00 80.0 2/1/99 11.375 153,200.00 Y
10216138336 154,800.00 80.0 2/1/99 9.500 193,500.00 Y
10216138383 22,500.00 75.0 2/1/99 11.000 30,000.00 Y
10216138468 140,000.00 35.0 2/1/99 9.500 400,000.00 Y
10216138473 88,000.00 80.0 2/1/99 12.000 110,000.00 Y
10216138494 135,839.50 90.0 2/1/99 10.000 151,000.00 Y
10216138528 155,200.00 60.8 2/1/99 8.625 255,000.00 Y
10216138574 40,000.00 45.4 2/1/99 9.625 88,000.00 N
10216138676 29,982.29 50.0 2/1/99 8.625 60,000.00 Y
10216138683 157,642.22 77.6 1/1/99 10.875 203,000.00 Y
10216138719 140,800.00 80.0 2/1/99 10.500 176,000.00 Y
10216138728 144,909.88 73.9 2/1/99 8.375 196,000.00 Y
10216138746 50,972.14 85.0 2/1/99 9.000 60,000.00 Y
10216138778 83,564.94 89.9 2/1/99 10.250 92,900.00 Y
10216138830 109,600.00 80.0 2/1/99 11.375 137,000.00 Y
10216138861 21,593.82 72.0 1/1/99 12.000 30,000.00 Y
10216138881 99,450.00 85.0 2/1/99 10.750 117,000.00 Y
10216138906 58,875.00 75.0 2/1/99 8.375 78,500.00 Y
10216138931 46,682.89 84.9 2/1/99 10.875 55,000.00 Y
10216138971 63,722.54 73.2 2/1/99 10.125 87,000.00 Y
10216138994 143,929.17 79.8 2/1/99 9.500 180,250.00 Y
10216139006 72,250.00 85.0 2/1/99 10.750 85,000.00 Y
10216139113 58,600.00 59.7 2/1/99 9.625 98,000.00 Y
10216139145 199,750.00 85.0 2/1/99 11.750 235,000.00 Y
10216139167 148,500.00 90.0 2/1/99 10.000 165,000.00 Y
10216139172 106,250.00 85.0 2/1/99 10.750 125,000.00 Y
10216139254 195,300.00 90.0 2/1/99 10.000 217,000.00 Y
10216139258 91,714.86 80.0 2/1/99 9.500 114,700.00 Y
10216139323 100,800.00 80.0 2/1/99 12.000 126,000.00 Y
10216139368 291,889.83 80.0 2/1/99 10.750 365,000.00 Y
10216139467 75,114.00 90.0 2/1/99 9.625 83,500.00 Y
10216139500 126,000.00 89.6 2/1/99 9.750 140,500.00 Y
10216139541 141,600.00 80.0 2/1/99 9.500 177,000.00 Y
10216139554 118,150.00 85.0 2/1/99 10.625 139,000.00 Y
10216139616 60,382.72 80.0 2/1/99 12.000 75,500.00 Y
10216139632 115,347.58 84.9 2/1/99 9.875 135,814.00 Y
10216139649 46,150.00 65.0 2/1/99 10.750 71,000.00 N
10216139706 80,500.00 70.0 2/1/99 9.500 115,000.00 N
10216139842 49,976.67 54.9 7/1/97 9.750 91,000.00 N
10216139882 64,600.00 85.0 2/1/99 10.750 76,000.00 Y
10216139993 132,000.00 80.0 3/1/99 10.875 165,000.00 Y
10216139997 120,000.00 80.0 2/1/99 9.250 150,000.00 Y
</TABLE>
<PAGE>
Alliance Funding Company Page 7 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
ML156 10216140097 NOE RODNEY H 120,000.00 SF 1,245.89
ML156 10216140109 GILNA DEREK A 41,200.00 SF 353.97
ML156 10216140127 HENRIE DAVID E 156,900.00 SF 1,348.01
ML156 10216140176 BARNES LARRY GLENN 93,500.00 SF 872.81
ML156 10216140228 MILLER RANDON L 175,000.00 SF 1,361.13
ML156 10216140290 BROWN CHARITY LOUISE 124,000.00 SF 1,323.40
ML156 10216140293 KOZAK RICHARD 48,000.00 SF 498.36
ML156 10216140331 LUCERO GEORGE G 85,000.00 SF 785.48
ML156 10216140342 HITCHMAN RALPH F 192,000.00 SF 1,864.82
ML156 10216140345 STEIN AMY RENEE 84,100.00 SF 769.30
ML156 10216140351 BURASH MICHAEL A 105,000.00 SF 816.68
ML156 10216140471 LUNA MARIA G 52,500.00 SF 529.95
ML156 10216140572 WILLIAMS KENNETH C 127,500.00 SF 1,190.19
ML156 10216140696 ELLIS VIRGINIA KAY 125,800.00 SF 1,269.84
ML156 10216140955 TALTY TROY A 78,300.00 SF 694.39
ML156 10216140962 PYLE ANNE 350,819.00 SF 3,046.33
ML156 10216141107 SPACCAROTELLI EDWARD V 91,000.00 SF 883.85
ML156 10216141110 PEARSON MICHAEL G 68,400.00 SF 593.95
ML156 10216141151 PHILLIPS JOHN W 89,600.00 SF 761.60
ML156 10216141238 SALAZAR-APARIC DEBRA ANNE 68,000.00 SF 752.22
ML156 10216141240 WONG ROBERT C 392,000.00 SF 3,659.25
ML156 10216141270 MARES DENNIS E 92,000.00 SF 964.06
ML156 10216141334 SINITSYN IGOR 239,400.00 SF 1,862.03
ML156 10216141408 EASTBURN DRAKE 92,000.00 SF 832.97
ML156 10216141722 CERDA VICTOR M 124,650.00 SF 1,036.78
ML156 10216141910 CHURCHILL ANGELA K 293,250.00 SF 2,600.61
ML156 10216142013 NGUYEN VINH Q 229,400.00 SF 1,887.22
ML156 10216142048 EGGERT THOMAS 350,000.00 SF 3,039.23
ML156 10216142053 GOZA CLIFTON W 138,600.00 SF 1,203.53
ML156 10216142179 HUGHES EARL G 29,200.00 SF 258.95
ML156 10216142182 KENNA CAROLYN J 41,600.00 SF 452.06
ML156 10216142272 PFEFFER STEVEN R 153,000.00 SF 1,399.55
----------- ---------- ------------- ---------
93 Sale Total 10,567,014.00 94,770.97
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10216140097 119,966.61 38.7 2/1/99 12.125 310,000.00 Y
10216140109 41,180.78 54.9 7/1/97 9.750 75,000.00 N
10216140127 156,900.00 74.7 2/1/99 9.750 210,000.00 Y
10216140176 93,500.00 85.0 2/1/99 10.750 110,000.00 Y
10216140228 175,000.00 70.0 8/1/97 8.625 250,000.00 Y
10216140290 124,000.00 80.0 2/1/99 12.500 155,000.00 Y
10216140293 47,986.64 28.7 2/1/99 12.125 167,000.00 Y
10216140331 85,000.00 85.0 2/1/99 10.625 100,000.00 Y
10216140342 192,000.00 80.0 2/1/99 11.250 240,000.00 Y
10216140345 84,100.00 79.9 2/1/99 10.500 105,200.00 Y
10216140351 104,938.01 76.0 2/1/99 8.625 138,000.00 Y
10216140471 52,500.00 70.0 2/1/99 11.750 75,000.00 Y
10216140572 127,500.00 85.0 2/1/99 10.750 150,000.00 Y
10216140696 125,800.00 85.0 2/1/99 11.750 148,000.00 Y
10216140955 78,300.00 90.0 8/1/97 10.125 87,000.00 Y
10216140962 350,819.00 84.9 8/1/97 9.875 412,729.00 Y
10216141107 91,000.00 70.0 3/1/99 11.250 130,000.00 Y
10216141110 68,400.00 84.4 2/1/99 9.875 81,000.00 Y
10216141151 89,557.07 80.0 8/1/97 9.625 112,000.00 Y
10216141238 68,000.00 80.0 2/1/99 13.000 85,000.00 Y
10216141240 392,000.00 62.7 3/1/99 10.750 625,000.00 N
10216141270 92,000.00 80.0 2/1/99 12.250 115,000.00 Y
10216141334 239,400.00 90.0 8/1/97 8.625 266,000.00 Y
10216141408 92,000.00 80.0 9/1/97 10.375 115,000.00 Y
10216141722 124,650.00 90.0 8/1/97 9.375 138,500.00 Y
10216141910 293,123.69 85.0 8/1/97 10.125 345,000.00 Y
10216142013 229,400.00 79.9 3/1/99 9.250 286,800.00 Y
10216142048 350,000.00 68.6 8/1/97 9.875 510,000.00 N
10216142053 138,600.00 90.0 2/1/99 9.875 154,000.00 Y
10216142179 29,200.00 89.8 2/1/99 10.125 32,500.00 Y
10216142182 41,600.00 80.0 3/1/99 12.750 52,000.00 Y
10216142272 153,000.00 90.0 3/1/99 10.500 170,000.00 Y
------------- ---- ------ -------------
10,565,756.72 78.7 10.248 13,862,493.00
</TABLE>
<PAGE>
Alliance Funding Company Page 8 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
ML157 10216133080 PRINCE DONALD 95,500.00 SF 1,019.23
ML157 10216134738 MARINELLIE BRIAN 101,872.00 SF 1,087.24
ML157 10216134942 STRINGER LOUISE A 135,800.00 SF 1,179.22
ML157 10216135052 TAYLOR-GANZER DEBRA 111,000.00 SF 893.13
ML157 10216135773 BOWEN WILLIAM J 50,150.00 SF 477.59
ML157 10216135842 COBB BRYAN L 121,500.00 SF 1,055.04
ML157 10216136183 LEHMAN LEONARD A JR 100,000.00 SF 933.48
ML157 10216136195 SMAJDA JACQUELINE E 70,700.00 SF 754.55
ML157 10216136317 SNYDER JAMES K 54,000.00 SF 514.25
ML157 10216136407 THOMPKINS ZACHERY K 153,000.00 SF 1,442.62
ML157 10216136416 OBRIEN BONITA A 89,200.00 SF 717.72
ML157 10216136427 SMITH JOY J 140,000.00 SF 1,440.06
ML157 10216136751 CROHN DUANE E 70,100.00 SF 667.58
ML157 10216136783 SMITH CLARENCE L 124,200.00 SF 1,067.07
ML157 10216136787 VORKAPICH RUDY 62,400.00 SF 530.39
ML157 10216136878 SEIDA LOWELL M 90,000.00 SF 789.81
ML157 10216136890 DREYER JOSEPH 35,000.00 SF 281.62
ML157 10216136892 ZIELINSKI THEODORE V JR 108,700.00 SF 845.46
ML157 10216136981 HODLE JOSEPH 76,000.00 SF 597.89
ML157 10216137135 MILLER ANTON 28,000.00 SF 285.32
ML157 10216137281 WURZ DONNA 67,600.00 SF 593.24
ML157 10216137295 GULLEY BESSIE 153,800.00 SF 1,421.26
ML157 10216137308 WENDLER LEONARD M 40,000.00 SF 311.12
ML157 10216137420 GUYTON AARON K 56,000.00 SF 435.56
ML157 10216137469 KAMINSKI JAMES A 64,600.00 SF 566.91
ML157 10216137524 KACOS GEORGE 55,000.00 SF 571.03
ML157 10216137533 GONZALEZ ROGELIO P 36,000.00 SF 356.50
ML157 10216137615 COLLINS DENICE 32,000.00 SF 248.89
ML157 10216137759 DALEY GARY 60,000.00 SF 499.05
ML157 10216137811 CALHOUN JOHNNIE LEE 36,800.00 SF 392.75
ML157 10216137908 JENKINS SOLOMON JR 51,200.00 SF 458.80
ML157 10216137921 BROOKS CLOPTON WINONA 37,800.00 SF 304.15
ML157 10216137994 OWINGS ROBERT 85,000.00 SF 661.12
ML157 10216138067 GUSTAVSON MARK STEVEN 135,150.00 SF 1,261.60
ML157 10216138144 HEGWOOD CATHERINE 140,000.00 MF 1,126.47
ML157 10216138182 KINDALL BRAD A 90,000.00 SF 781.51
ML157 10216138283 MILLER ERIC ALDEN 132,600.00 SF 1,237.80
ML157 10216138299 FULLER JACK M 272,000.00 SF 2,564.66
ML157 10216138305 HERNANDEZ FRANK S 80,000.00 SF 665.40
ML157 10216138372 CREEK BARBARA P 128,000.00 SF 1,255.38
ML157 10216138394 ATKINS MARK A 136,000.00 SF 1,094.29
ML157 10216138462 CASSELMAN SCOTT A 92,000.00 SF 699.27
ML157 10216138486 MORATTI JERRY L 55,000.00 SF 487.75
ML157 10216138495 PEEBLES CEDRIC D 124,950.00 SF 1,131.31
ML157 10216138525 OSBORNE RICHARD W 165,000.00 SF 1,571.33
ML157 10216138533 STOKES JAMES A 86,200.00 SF 788.51
ML157 10216138672 PRATER DONNELL 225,000.00 MF 1,953.78
ML157 10216138673 JOHNSON RICHARD 41,300.00 SF 332.31
ML157 10216138775 SADOWSKI JAMES ABYSIUS 140,200.00 SF 1,269.38
ML157 10216138781 ROSE ROBERT J 120,000.00 SF 1,234.34
ML157 10216138789 BAKER LINDA G 56,300.00 SF 437.90
ML157 10216138805 WIGGINS BRENT L 124,200.00 SF 1,182.79
ML157 10216138813 ECKHARDT GARY NEIL 202,500.00 SF 1,721.23
ML157 10216138814 MCCANDLESS DAN 88,000.00 SF 863.07
ML157 10216138833 MCGOWIN CHIQUITA HYSAW 170,850.00 SF 1,594.85
ML157 10216138910 GRIPPA MICHAEL A 119,850.00 SF 1,118.78
ML157 10216138942 LUDVIGSEN LISA L 127,500.00 SF 991.68
ML157 10216139058 GARCIA FRANCISCO 43,200.00 SF 411.41
ML157 10216139063 EGGLESTON SCOTT W 275,000.00 SF 2,312.35
ML157 10216139078 WATSON ROGER A 54,000.00 SF 514.25
ML157 10216139093 AL-HASSANI RAAD 48,000.00 SF 373.34
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10216133080 95,425.93 54.5 5/1/97 12.500 175,000.00 N
10216134738 101,872.00 80.0 2/1/99 12.500 127,340.00 Y
10216134942 135,612.52 89.9 1/1/99 9.875 150,973.00 Y
10216135052 111,000.00 79.2 2/1/99 9.000 140,000.00 Y
10216135773 50,150.00 85.0 2/1/99 11.000 59,000.00 Y
10216135842 121,444.80 90.0 2/1/99 9.875 135,000.00 Y
10216136183 100,000.00 27.7 2/1/99 10.750 360,000.00 Y
10216136195 70,700.00 78.5 2/1/99 12.500 90,000.00 Y
10216136317 53,980.75 75.0 2/1/99 11.000 72,000.00 Y
10216136407 153,000.00 90.0 2/1/99 10.875 170,000.00 Y
10216136416 89,151.28 84.9 2/1/99 9.000 105,000.00 Y
10216136427 140,000.00 80.0 2/1/99 12.000 175,000.00 Y
10216136751 70,049.77 74.5 1/1/99 11.000 94,000.00 Y
10216136783 124,200.00 90.0 2/1/99 9.750 138,000.00 Y
10216136787 62,400.00 80.0 2/1/99 9.625 78,000.00 Y
10216136878 90,000.00 57.3 2/1/99 10.000 156,840.00 Y
10216136890 34,942.21 21.8 1/1/99 9.000 160,000.00 Y
10216136892 108,700.00 74.9 2/1/99 8.625 145,000.00 Y
10216136981 75,956.28 79.1 2/1/99 8.750 96,000.00 Y
10216137135 27,983.44 80.0 6/1/97 11.875 35,000.00 N
10216137281 67,600.00 65.0 2/1/99 10.000 104,000.00 N
10216137295 153,800.00 84.9 2/1/99 10.625 181,000.00 Y
10216137308 40,000.00 71.4 2/1/99 8.625 56,000.00 Y
10216137420 56,000.00 72.7 2/1/99 8.625 77,000.00 Y
10216137469 64,571.42 85.0 2/1/99 10.000 76,000.00 Y
10216137524 54,984.70 32.3 2/1/99 12.125 170,000.00 Y
10216137533 36,000.00 52.9 8/1/97 11.500 68,000.00 Y
10216137615 32,000.00 48.4 2/1/99 8.625 66,000.00 Y
10216137759 59,968.75 60.0 1/1/99 9.375 100,000.00 Y
10216137811 36,800.00 80.0 2/1/99 12.500 46,000.00 Y
10216137908 51,070.15 88.2 12/1/98 10.250 58,000.00 Y
10216137921 37,800.00 70.0 2/1/99 9.000 54,000.00 N
10216137994 84,949.82 81.7 2/1/99 8.625 104,000.00 Y
10216138067 135,150.00 85.0 2/1/99 10.750 159,000.00 Y
10216138144 140,000.00 68.2 2/1/99 9.000 205,000.00 N
10216138182 90,000.00 90.0 2/1/99 9.875 100,000.00 Y
10216138283 132,600.00 80.8 2/1/99 10.750 164,000.00 Y
10216138299 272,000.00 85.0 8/1/97 10.875 320,000.00 Y
10216138305 80,000.00 76.1 2/1/99 9.375 105,000.00 Y
10216138372 128,000.00 79.0 2/1/99 11.375 162,000.00 Y
10216138394 136,000.00 85.0 2/1/99 9.000 160,000.00 Y
10216138462 92,000.00 80.0 2/1/99 8.375 115,000.00 Y
10216138486 54,976.31 73.3 2/1/99 10.125 75,000.00 Y
10216138495 124,950.00 85.0 2/1/99 10.375 147,000.00 Y
10216138525 164,941.17 75.0 2/1/99 11.000 220,000.00 Y
10216138533 86,165.74 74.9 2/1/99 10.500 115,000.00 Y
10216138672 224,897.78 90.0 1/1/99 9.875 250,000.00 Y
10216138673 41,300.00 70.0 2/1/99 9.000 59,000.00 N
10216138775 140,200.00 84.9 8/1/97 10.375 165,000.00 Y
10216138781 120,000.00 80.0 2/1/99 12.000 150,000.00 Y
10216138789 56,300.00 79.9 3/1/99 8.625 70,400.00 Y
10216138805 124,200.00 90.0 2/1/99 11.000 138,000.00 Y
10216138813 202,500.00 90.0 2/1/99 9.625 225,000.00 Y
10216138814 88,000.00 80.0 2/1/99 11.375 110,000.00 Y
10216138833 170,850.00 84.9 2/1/99 10.750 201,146.00 Y
10216138910 119,850.00 85.0 2/1/99 10.750 141,000.00 Y
10216138942 127,500.00 85.0 2/1/99 8.625 150,000.00 Y
10216139058 43,200.00 90.0 2/1/99 11.000 48,000.00 Y
10216139063 275,000.00 79.7 2/1/99 9.500 345,000.00 Y
10216139078 54,000.00 73.4 2/1/99 11.000 73,500.00 Y
10216139093 48,000.00 67.6 8/1/97 8.625 71,000.00 Y
</TABLE>
<PAGE>
Alliance Funding Company Page 9 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
ML157 10216139185 LOPEZ ISABEL Q 124,950.00 SF 1,166.39
ML157 10216139236 CLARK RANDALL H 87,200.00 SF 896.95
ML157 10216139297 DYRESON JAMES A 160,000.00 SF 1,523.72
ML157 10216139312 BURNS RONALD 30,100.00 SF 234.11
ML157 10216139446 DICKSON MARK L 136,000.00 SF 1,269.53
ML157 10216139534 BOYD FRED L 46,800.00 SF 481.39
ML157 10216139592 REHM RICHARD M 157,600.00 SF 1,560.70
ML157 10216139619 PARK GREG R 160,500.00 SF 1,262.65
ML157 10216139628 TIBLJAS GARY W 240,500.00 SF 2,022.25
ML157 10216139815 HOLLIS WILLIAM 52,100.00 SF 447.62
ML157 10216139822 CLARK QUEEN H 41,000.00 SF 329.90
ML157 10216139912 CAULEY M CAD 135,500.00 SF 1,139.36
ML157 10216139933 DODGE LORI L 59,200.00 SF 497.79
ML157 10216139947 HUIE KEVIN W 131,000.00 SF 1,247.54
ML157 10216139983 EVANS JAMES A 72,000.00 SF 719.88
ML157 10216139986 FRIEDMAN ANDREW M 143,650.00 SF 1,340.95
ML157 10216140069 HAVER JASON C 97,325.00 SF 739.74
ML157 10216140103 VINES RICK 56,900.00 SF 525.81
ML157 10216140122 DARDEN ERIC 55,900.00 SF 580.38
ML157 10216140128 ROSS KENNETH F 61,200.00 SF 629.51
ML157 10216140133 MCVAY LAWRENCE H 124,950.00 SF 1,178.14
ML157 10216140167 CRANNEY WILLARD D 105,150.00 SF 884.16
ML157 10216140199 WILSON STEPHANIE 77,300.00 SF 621.97
ML157 10216140215 ELHORR ISSAM 100,000.00 SF 804.62
ML157 10216140299 BOLIG THOMAS 58,600.00 SF 552.53
ML157 10216140316 GREER WILLIAM T 107,200.00 SF 901.40
ML157 10216140403 DUNCAN ROBERT L 255,000.00 SF 2,097.83
ML157 10216140447 CRUM DAVID J 65,000.00 SF 619.01
ML157 10216140516 MALONE MICHAEL J 475,000.00 SF 4,037.45
ML157 10216140522 ISHO MAHER 83,000.00 SF 690.35
ML157 10216140597 SAFIE GEORGE 224,000.00 SF 1,965.76
ML157 10216140598 MILLER LEROY D 89,600.00 SF 819.61
ML157 10216140636 PENN DAVID 330,700.00 SF 2,631.20
ML157 10216140674 WILLIAMS L C 53,600.00 SF 551.34
ML157 10216140723 YUSRA RIDHA 70,200.00 SF 583.89
ML157 10216140724 NASLUND JOSEPH 120,000.00 SF 1,097.69
ML157 10216140823 LEE JAMES M 74,400.00 SF 722.62
ML157 10216140836 RICHTER GLENN 40,800.00 SF 427.54
ML157 10216140904 EVANS THERESA G 73,500.00 SF 591.40
ML157 10216140972 TYLER WILLIAM F 38,000.00 SF 295.56
ML157 10216140989 GEJDOS NINA Z 84,500.00 SF 885.47
ML157 10216141009 OLLIER GUY A 32,400.00 SF 269.49
ML157 10216141092 MORICZ TIMOTHY 36,000.00 SF 384.21
ML157 10216141193 MEDRANO AGRIPINO M 136,000.00 SF 1,180.95
ML157 10216141196 VERZO EDILBERTO V 365,400.00 MF 3,039.21
ML157 10216141212 MCHUGH SHAWN P 46,800.00 SF 402.08
ML157 10216141215 AL-BAGHDADY ALI 33,200.00 SF 297.51
ML157 10216141316 MILLS EILEEN M 79,900.00 SF 760.91
ML157 10216141374 MCGUIRE JULIETTE F 155,800.00 SF 1,381.67
ML157 10216141411 ADAMS JILL L 202,300.00 SF 1,850.52
ML157 10216141451 WILLIAMS JAMES G 132,300.00 SF 1,029.02
ML157 10216141460 MALONE PATRICK J 100,800.00 SF 884.59
ML157 10216141506 GAPPA JOSEPH P 59,200.00 SF 471.02
ML157 10216141513 MARSHALL JAMES E JR 99,200.00 SF 935.72
ML157 10216141532 ZAHNOW LARRY D 460,000.00 SF 4,294.02
ML157 10216141594 BUTLER JOHN Q 34,800.00 SF 276.88
ML157 10216141679 DERY BRADLEY P 49,000.00 SF 475.92
ML157 10216141759 AL-RUBEY KAREEM J 63,000.00 SF 524.00
ML157 10216141798 MURRAY WILLIAM G 108,500.00 SF 1,012.83
ML157 10216141802 CAMPBELL MICHAEL J 106,250.00 SF 942.25
ML157 10216141829 COLUNGA LEAH L 45,000.00 SF 374.29
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10216139185 124,902.95 84.4 2/1/99 10.750 147,900.00 Y
10216139236 87,200.00 78.5 2/1/99 12.000 111,000.00 Y
10216139297 160,000.00 80.0 2/1/99 11.000 200,000.00 Y
10216139312 30,100.00 70.0 2/1/99 8.625 43,000.00 N
10216139446 136,000.00 85.0 2/1/99 10.750 160,000.00 Y
10216139534 46,800.00 65.0 2/1/99 12.000 72,000.00 Y
10216139592 157,600.00 80.0 2/1/99 11.500 197,000.00 Y
10216139619 160,500.00 75.0 2/1/99 8.750 214,000.00 Y
10216139628 240,381.71 71.5 2/1/99 9.500 336,000.00 Y
10216139815 52,075.69 42.0 8/1/97 9.750 124,000.00 Y
10216139822 41,000.00 44.0 2/1/99 9.000 93,000.00 Y
10216139912 135,500.00 69.8 2/1/99 9.500 194,000.00 Y
10216139933 59,170.88 78.9 2/1/99 9.500 75,000.00 Y
10216139947 131,000.00 74.8 3/1/99 11.000 175,000.00 Y
10216139983 72,000.00 80.0 8/1/97 11.625 90,000.00 Y
10216139986 143,595.86 85.0 2/1/99 10.750 169,000.00 Y
10216140069 97,325.00 84.6 2/1/99 8.375 115,000.00 Y
10216140103 56,900.00 84.9 3/1/99 10.625 67,000.00 Y
10216140122 55,884.44 65.0 2/1/99 12.125 86,000.00 Y
10216140128 61,200.00 79.4 2/1/99 12.000 77,000.00 Y
10216140133 124,950.00 85.0 3/1/99 10.875 147,000.00 Y
10216140167 105,150.00 79.9 2/1/99 9.500 131,440.00 Y
10216140199 77,300.00 84.9 2/1/99 9.000 91,000.00 Y
10216140215 99,945.38 80.0 1/1/99 9.000 125,000.00 Y
10216140299 58,600.00 84.9 2/1/99 10.875 69,000.00 Y
10216140316 107,200.00 80.0 2/1/99 9.500 134,000.00 Y
10216140403 255,000.00 79.6 2/1/99 9.250 320,000.00 Y
10216140447 65,000.00 65.0 2/1/99 11.000 100,000.00 Y
10216140516 475,000.00 83.3 2/1/99 9.625 570,000.00 Y
10216140522 82,948.44 89.2 7/1/97 9.375 93,000.00 Y
10216140597 224,000.00 40.7 2/1/99 10.000 550,000.00 Y
10216140598 89,600.00 70.0 2/1/99 10.500 128,000.00 Y
10216140636 330,700.00 76.9 8/1/97 8.875 430,000.00 Y
10216140674 53,600.00 80.0 2/1/99 12.000 67,000.00 Y
10216140723 70,200.00 90.0 8/1/97 9.375 78,000.00 Y
10216140724 120,000.00 80.0 2/1/99 10.500 150,000.00 Y
10216140823 74,400.00 80.0 8/1/97 11.250 93,000.00 Y
10216140836 40,786.50 80.0 2/1/99 12.250 51,000.00 Y
10216140904 73,500.00 84.4 2/1/99 9.000 87,000.00 Y
10216140972 37,977.57 67.8 2/1/99 8.625 56,000.00 Y
10216140989 84,500.00 65.0 2/1/99 12.250 130,000.00 Y
10216141009 32,400.00 90.0 8/1/97 9.375 36,000.00 Y
10216141092 36,000.00 80.0 2/1/99 12.500 45,000.00 Y
10216141193 136,000.00 80.0 3/1/99 9.875 170,000.00 Y
10216141196 365,400.00 90.0 3/1/99 9.375 406,000.00 Y
10216141212 46,800.00 74.8 8/1/97 9.750 62,500.00 Y
10216141215 33,200.00 89.7 2/1/99 10.250 37,000.00 Y
10216141316 79,900.00 85.0 3/1/99 11.000 94,000.00 Y
10216141374 155,800.00 84.9 9/1/97 10.125 183,397.00 Y
10216141411 202,300.00 85.0 3/1/99 10.500 238,000.00 Y
10216141451 132,300.00 90.0 8/1/97 8.625 147,000.00 Y
10216141460 100,755.41 80.0 2/1/99 10.000 126,000.00 Y
10216141506 59,200.00 80.0 3/1/99 8.875 74,000.00 Y
10216141513 99,163.69 80.0 8/1/97 10.880 124,000.00 Y
10216141532 460,000.00 80.0 3/1/99 10.750 575,000.00 Y
10216141594 34,800.00 79.0 8/1/97 8.875 44,000.00 Y
10216141679 49,000.00 70.0 3/1/99 11.250 70,000.00 Y
10216141759 63,000.00 88.7 8/1/97 9.375 71,000.00 Y
10216141798 108,500.00 70.0 2/1/99 10.750 155,000.00 Y
10216141802 106,250.00 85.0 9/1/97 10.125 125,000.00 Y
10216141829 45,000.00 37.1 3/1/99 9.375 121,000.00 Y
</TABLE>
<PAGE>
Alliance Funding Company Page 10 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
ML157 10216141842 MORGAN RALPH A 109,200.00 SF 898.36
ML157 10216141861 STOYKE DONALD J 70,000.00 SF 679.88
ML157 10216141873 LUXTON SARI 10,500.00 SF 92.15
ML157 10216141894 NEHME NADA 65,000.00 SF 505.56
ML157 10216142015 MILLER JERRY F 144,000.00 SF 1,290.39
ML157 10216142027 CHRISTIANSEN LEE D 164,000.00 SF 1,409.01
ML157 10216142044 OWEN SCOTT G 111,192.00 SF 1,048.42
ML157 10216142214 NEUBECK III WILLIAM H 65,100.00 SF 583.37
ML157 10216142263 CHARLES MICHAEL ST 100,400.00 SF 1,052.09
ML157 10216142271 AL-JABERY HAIDER 104,800.00 MF 862.16
ML157 10216142385 OSWALT TODD A 108,000.00 SF 937.82
ML157 10216142544 DBOUK NAJLA ALI 50,000.00 SF 411.34
ML157 10216142918 ISAAM JISHI 135,100.00 SF 1,111.43
----------- ---------- ------------- ----------
135 Sale Total 14,348,789.00 127,621.17
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10216141842 109,200.00 84.9 3/1/99 9.250 128,500.00 Y
10216141861 70,000.00 80.0 8/1/97 11.250 87,500.00 Y
10216141873 10,500.00 30.0 9/1/97 10.000 35,000.00 N
10216141894 65,000.00 75.5 2/1/99 8.625 86,000.00 Y
10216142015 144,000.00 90.0 3/1/99 10.250 160,000.00 Y
10216142027 164,000.00 80.0 3/1/99 9.750 205,000.00 Y
10216142044 111,192.00 79.9 9/1/97 10.875 138,991.00 Y
10216142214 65,100.00 70.0 2/1/99 10.250 93,000.00 N
10216142263 100,372.83 80.0 2/1/99 12.250 125,500.00 Y
10216142271 104,800.00 80.0 2/1/99 9.250 131,000.00 Y
10216142385 108,000.00 80.0 8/1/97 9.875 135,000.00 Y
10216142544 50,000.00 78.1 3/1/99 9.250 64,000.00 Y
10216142918 135,100.00 70.0 3/1/99 9.250 193,000.00 Y
------------- ---- ------ -------------
14,347,223.17 78.7 10.148 18,898,927.00
</TABLE>
<PAGE>
Alliance Funding Company Page 11 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
MLC158 10218000142 HARDY ROBERT C 173,400.00 SF 1,602.38
MLC158 10218000191 CLAYTON WINZLE JR 200,000.00 SF 2,018.82
MLC158 10218000711 HEIM JOSEPH W 203,000.00 SF 1,651.67
MLC158 10218001085 BRENT ETTA DIXON 157,720.00 SF 1,413.33
MLC158 10218001525 RODRIGUEZ LYDIA 174,250.00 SF 1,577.67
MLC158 10218002437 CRESPO DIANE 20,000.00 SF 207.65
MLC158 10218002589 TRUBEY JOYCE OLIVIA 110,500.00 SF 1,031.50
MLC158 10218003110 NAYCI ZEKERIYA 131,400.00 SF 1,177.48
MLC158 10218003168 LOBBAN ROBERT J 100,000.00 SF 952.32
MLC158 10218003186 RODRIGUEZ JOSEPH F 91,000.00 SF 866.61
MLC158 10218003208 SAWYERS THOMAS R 146,150.00 SF 1,378.03
MLC158 10218003210 LAMPITELLI JOHN 100,000.00 SF 905.41
MLC158 10218003387 ROHN KENNETH S 30,000.00 SF 263.27
MLC158 10218003457 MARKOWITZ JOEL M 195,000.00 SF 1,765.54
MLC158 10218003482 BESSO RONALD J 93,675.00 SF 779.14
MLC158 10218003546 HENRY ALFRED L 72,000.00 SF 645.19
MLC158 10218003583 GOMES GABRIEL 263,500.00 MF 2,331.89
MLC158 10218003667 DELGALDO CARMINE 159,000.00 SF 1,308.05
MLC158 10218003724 CAMARADA ANTHONY 81,000.00 SF 725.84
MLC158 10218003752 BRAIM MARY 106,250.00 SF 1,062.33
MLC158 10218003773 LY SARY 121,600.00 SF 945.79
MLC158 10218003841 FORSEY GEORGE A 108,000.00 MF 1,018.32
MLC158 10218003908 ROCCO ANTHONY 141,750.00 SF 1,430.84
MLC158 10218004216 SANSEVERINO DENNIS 200,000.00 SF 1,848.19
MLC158 10218004222 JUSTE PIERRE 83,300.00 SF 897.11
MLC158 10218004235 WALSH MARY B 100,000.00 SF 905.41
MLC158 10218004364 MCGOVERN WILLIAM T 122,400.00 SF 984.86
MLC158 10218004411 CAFORA LOUISE T 72,000.00 MF 651.89
MLC158 10218004470 GAGLIARDI STEVEN 174,000.00 SF 1,526.97
MLC158 10218004517 BONNET XIOMARA 139,500.00 MF 1,250.06
MLC158 10218004524 EDO ROBERT J 184,000.00 SF 1,910.37
MLC158 10218004584 WALSH MICHAEL J 207,000.00 SF 1,835.72
MLC158 10218004585 SULLIVAN BRIAN K 157,250.00 MF 1,482.69
MLC158 10218004716 BRYANT SHARON 140,250.00 MF 1,429.15
MLC158 10218004776 MAHER JOHN 76,900.00 SF 820.72
MLC158 10218004866 LIRIANO CHRISTIAN 80,800.00 SF 784.78
MLC158 10218005013 FIORENTINO ROSEMARIE 240,000.00 MF 2,399.62
MLC158 10218005043 ARVANITAKIS DENISE 385,000.00 SF 3,923.15
MLC158 10218005048 TRIANTAFELOW JOHN R 73,500.00 SF 618.03
MLC158 10218005086 ZIBA SHPENDIM 125,000.00 SF 1,309.87
MLC158 10218005173 LARSON JOHN M 106,000.00 SF 969.62
MLC158 10218005240 LAPP SHIRLEY N 115,000.00 SF 1,051.95
MLC158 10218005285 ATKINS LLOYD E 138,400.00 SF 1,113.60
MLC158 10218005296 GILGORE ROBERT J 28,800.00 SF 258.08
MLC158 10218005458 CHAVEZ JEAN 176,400.00 SF 1,679.90
MLC158 10218005475 BOYER VICTOR L 65,000.00 SF 511.35
MLC158 10218005478 SANCHO KATHLEEN 160,000.00 MF 1,661.19
MLC158 10218005511 LEE MICHAEL H 52,000.00 SF 514.95
MLC158 10218005512 TAYLOR EDWARD 56,000.00 SF 522.75
MLC158 10218005542 SCORZETTI WILLIAM D 36,000.00 SF 339.44
MLC158 10218005574 PEARS JEFFREY L 26,350.00 SF 248.45
MLC158 10218005651 KALAMARAS PETER T 143,200.00 MF 1,404.45
MLC158 10218005677 CASTELLANO GERALDINE 148,500.00 SF 1,303.19
MLC158 10218005684 SULLIVAN JOHN B 177,225.00 MF 1,654.36
MLC158 10218005697 JOHNSON L.C. 136,000.00 MF 1,282.33
MLC158 10218005703 BACHINSKI JEFFERSON P 23,920.00 SF 255.29
MLC158 10218005728 SIMONDS MICHAEL 127,950.00 SF 1,206.43
MLC158 10218005767 VERMEYCHUK DANIEL 180,000.00 SF 1,529.98
MLC158 10218005870 NEPTUNE CARL 142,800.00 SF 1,266.38
MLC158 10218005880 LYONS STEPHEN N 71,600.00 SF 764.16
MLC158 10218005977 FILANCIA PETER A 162,314.00 SF 1,499.94
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10218000142 173,058.66 85.0 9/1/97 11.625 204,000.00 Y
10218000191 199,754.47 80.0 4/1/97 11.750 250,000.00 Y
10218000711 202,562.95 67.6 4/1/97 9.125 300,000.00 Y
10218001085 157,587.82 90.0 6/1/97 10.250 175,245.00 Y
10218001525 174,107.11 85.0 6/1/97 10.375 205,000.00 Y
10218002437 19,988.81 25.3 6/1/97 12.125 79,000.00 Y
10218002589 110,500.00 85.0 2/1/99 10.750 130,000.00 Y
10218003110 131,400.00 90.0 2/1/99 10.250 146,000.00 Y
10218003168 100,000.00 23.6 2/1/99 11.000 423,000.00 Y
10218003186 91,000.00 75.8 2/1/99 11.000 120,000.00 Y
10218003208 146,150.00 85.9 2/1/99 10.875 170,000.00 Y
10218003210 100,000.00 73.5 2/1/99 10.375 136,000.00 Y
10218003387 29,986.73 75.0 7/1/97 10.000 40,000.00 Y
10218003457 194,920.40 82.9 2/1/99 10.375 235,000.00 Y
10218003482 93,675.00 75.0 2/1/99 9.375 124,900.00 Y
10218003546 72,000.00 90.0 2/1/99 10.250 80,000.00 Y
10218003583 263,500.00 85.0 2/1/99 10.100 310,000.00 Y
10218003667 158,917.58 75.0 2/1/99 9.250 212,000.00 Y
10218003724 81,000.00 72.9 2/1/99 10.250 111,000.00 Y
10218003752 106,250.00 85.0 2/1/99 11.625 125,000.00 Y
10218003773 121,528.21 80.0 2/1/99 8.625 152,000.00 Y
10218003841 107,960.43 90.0 1/1/99 10.875 120,000.00 Y
10218003908 141,707.13 75.0 1/1/99 11.750 189,000.00 Y
10218004216 199,544.51 86.9 1/1/99 10.625 230,000.00 Y
10218004222 83,300.00 80.8 2/1/99 12.625 103,000.00 Y
10218004235 99,959.17 44.4 8/1/97 10.375 225,000.00 Y
10218004364 122,400.00 80.0 2/1/99 9.000 153,000.00 Y
10218004411 71,940.97 60.0 7/1/97 10.375 120,000.00 Y
10218004470 174,000.00 75.0 2/1/99 10.000 232,000.00 Y
10218004517 139,500.00 90.0 2/1/99 10.250 155,000.00 Y
10218004524 184,000.00 80.0 2/1/99 12.125 230,000.00 Y
10218004584 206,820.93 90.0 7/1/97 10.125 230,000.00 Y
10218004585 157,250.00 85.0 2/1/99 10.875 185,000.00 Y
10218004716 140,250.00 85.0 2/1/99 11.875 165,000.00 Y
10218004776 76,880.32 80.9 2/1/99 12.500 95,000.00 Y
10218004866 80,800.00 80.0 8/1/97 11.250 101,000.00 Y
10218005013 240,000.00 64.0 8/1/97 11.625 375,000.00 Y
10218005043 385,000.00 70.0 8/1/97 11.875 550,000.00 Y
10218005048 73,463.85 75.0 2/1/99 9.500 98,000.00 Y
10218005086 125,000.00 79.8 2/1/99 12.250 156,500.00 Y
10218005173 105,957.88 73.1 2/1/99 10.500 145,000.00 Y
10218005240 115,000.00 49.1 2/1/99 10.500 234,000.00 Y
10218005285 138,400.00 80.0 2/1/99 9.000 173,000.00 Y
10218005296 28,800.00 90.0 2/1/99 10.250 32,000.00 Y
10218005458 176,337.10 90.0 2/1/99 11.000 196,000.00 Y
10218005475 64,962.61 65.6 2/1/99 8.750 99,000.00 Y
10218005478 160,000.00 80.0 2/1/99 12.125 200,000.00 Y
10218005511 52,000.00 80.0 2/1/99 11.500 65,000.00 Y
10218005512 56,000.00 65.8 2/1/99 10.750 85,000.00 Y
10218005542 35,660.56 75.0 2/1/99 10.875 48,000.00 Y
10218005574 26,350.00 85.0 2/1/99 10.875 31,000.00 Y
10218005651 143,152.97 80.0 7/1/97 11.375 179,000.00 Y
10218005677 148,368.07 90.0 7/1/97 10.000 165,000.00 Y
10218005684 177,225.00 85.0 2/1/99 10.750 208,500.00 Y
10218005697 136,000.00 85.0 8/1/97 10.875 160,000.00 Y
10218005703 23,920.00 79.7 2/1/99 12.500 30,000.00 Y
10218005728 127,903.12 85.3 2/1/99 10.875 150,000.00 Y
10218005767 179,826.85 80.0 6/1/97 9.625 225,000.00 Y
10218005870 142,676.47 85.0 6/1/97 10.125 168,000.00 Y
10218005880 71,563.15 80.0 12/1/98 12.500 89,500.00 Y
10218005977 162,314.00 85.0 2/1/99 10.625 190,958.00 N
</TABLE>
<PAGE>
Alliance Funding Company Page 12 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
MLC158 10218006020 PATTISON LORENA D 136,000.00 SF 1,094.29
MLC158 10218006079 SHIWKARAN MANGALBAI 61,200.00 MF 571.29
MLC158 10218006083 CARR MICHAEL PATRICK SR 208,840.00 SF 2,228.86
MLC158 10218006087 PHANORD FLAUBERT 99,450.00 SF 994.34
MLC158 10218006118 GIONFRIDDO BRIAN A 100,000.00 SF 990.29
MLC158 10218006128 GARLASCO LAWRENCE C 254,000.00 SF 2,158.97
MLC158 10218006130 SUCENA REGINALDO 175,500.00 MF 1,704.56
MLC158 10218006188 PARKER OTIS L 150,000.00 MF 1,358.11
MLC158 10218006259 MOSELEY LINDA 102,000.00 SF 802.43
MLC158 10218006266 ZAGLOOL MOHAMMED M 140,250.00 SF 1,322.40
MLC158 10218006282 MERCURO JAMES 52,000.00 SF 539.89
MLC158 10218006319 DIAMOND DEBORAH 98,400.00 SF 836.39
MLC158 10218006330 GLAEWKETGARN DUANGJAI 168,000.00 SF 1,695.81
MLC158 10218006350 RAMKHELAWAN RAAMPIET 80,000.00 SF 709.46
MLC158 10218006356 PEREIRA ANTHONY STOKES 180,000.00 SF 1,834.20
MLC158 10218006374 DITTRICH JOHN N JR 129,900.00 SF 1,021.92
MLC158 10218006394 DESANTIS ANTHONY R 37,800.00 SF 294.00
MLC158 10218006452 GARCIA LUIS L 210,000.00 SF 2,059.61
MLC158 10218006465 HUSSEY CLAUDIA 52,500.00 SF 422.43
MLC158 10218006469 ZISA ALDO 180,000.00 SF 1,629.73
MLC158 10218006479 WOOTERS-DICICCO SANDRA 110,800.00 SF 1,097.24
MLC158 10218006543 ZITO ROBERT 80,000.00 MF 629.36
MLC158 10218006545 GARVIN GEORGE F 117,300.00 SF 922.80
MLC158 10218006552 MAZA SANDRO E 98,515.00 SF 928.89
MLC158 10218006561 MAKDIS GEORGE 58,500.00 MF 444.64
MLC158 10218006587 DALFERES DUFFEL JR 119,430.00 SF 1,015.14
MLC158 10218006623 RAMSEY FRED 60,000.00 SF 594.17
MLC158 10218006625 LOVETERE THOMAS 500,000.00 SF 4,527.03
MLC158 10218006648 NORTON BRENDA L 83,700.00 SF 773.47
MLC158 10218006655 SMITH WARREN 107,100.00 SF 920.15
MLC158 10218006672 ONEILL SUSAN 176,500.00 SF 1,565.24
MLC158 10218006683 BOHNET MICHAEL C II 22,715.00 SF 182.77
MLC158 10218006697 CALDERON JAIRO 165,000.00 SF 1,342.49
MLC158 10218006698 PECORINO JOSEPH 114,300.00 SF 992.52
MLC158 10218006731 BOWEN VINCENT R JR 47,000.00 SF 429.93
MLC158 10218006863 RYAN EILEEN A 81,640.00 SF 746.79
MLC158 10218006884 ZIMMERMAN STEPHEN A 56,300.00 SF 478.54
MLC158 10218006885 FRANCO JORGE 159,300.00 SF 1,427.49
MLC158 10218006895 MANSPERGER CYRIL H 225,000.00 SF 1,912.48
MLC158 10218006897 DILEO MARIA G 185,500.00 MF 1,593.73
MLC158 10218006915 HADDAD ALY EL 44,800.00 CD 380.80
MLC158 10218006951 WELSH ROANLD L 42,500.00 SF 341.96
MLC158 10218006996 MCGORRY ROBERT B 188,500.00 SF 1,902.74
MLC158 10218006997 LAVOIE SUSAN M 64,260.00 SF 575.83
MLC158 10218007022 GOMES BRIAN 45,600.00 SF 451.57
MLC158 10218007034 GUILFORD ARTHUR M 54,000.00 SF 468.91
MLC158 10218007072 SHEEHAN CATHLEEN N 192,000.00 SF 1,544.88
MLC158 10218007096 HART MICHAEL 120,000.00 CD 1,053.09
MLC158 10218007148 SKLAR HERBERT 50,000.00 SF 411.34
MLC158 10218007220 CUTLER DIANE P 44,800.00 SF 409.80
MLC158 10218007224 DINARDO SALVATORE 35,000.00 SF 300.70
MLC158 10218007226 PERRITANO RALPH A 249,950.00 SF 2,147.46
MLC158 10218007230 RUBENIC ECKAHARD K 171,980.00 SF 1,322.38
MLC158 10218007342 WHALE GREGORY E SR 112,640.00 SF 967.75
MLC158 10218007346 SMITH MICHAEL 85,000.00 MF 858.00
MLC158 10218007357 PETERS STEPHEN C 171,900.00 SF 1,508.55
MLC158 10218007396 HUNSICKER DEBORAH A 78,000.00 SF 670.14
MLC158 10218007400 DAVIS LLOYD 124,000.00 MF 1,122.70
MLC158 10218007403 COURTNEY SANDRA B 106,250.00 MF 1,082.69
MLC158 10218007466 OGDEN JAMES C 58,650.00 SF 471.91
MLC158 10218007490 MUDLOCK JAMES K 52,000.00 SF 554.97
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10218006020 136,000.00 85.0 2/1/99 9.000 160,000.00 Y
10218006079 61,200.00 85.0 2/1/99 10.750 72,000.00 N
10218006083 208,786.56 80.9 1/1/99 12.500 258,000.00 Y
10218006087 98,455.70 85.0 2/1/99 11.625 117,000.00 Y
10218006118 100,000.00 80.0 2/1/99 11.500 125,000.00 Y
10218006128 254,000.00 80.6 8/1/97 9.625 315,000.00 Y
10218006130 175,440.75 90.0 2/1/99 11.250 195,000.00 Y
10218006188 150,000.00 75.0 2/1/99 10.375 200,000.00 Y
10218006259 102,000.00 82.9 2/1/99 8.750 123,000.00 Y
10218006266 140,250.00 85.0 2/1/99 10.875 165,000.00 Y
10218006282 52,000.00 65.0 2/1/99 12.125 80,000.00 Y
10218006319 98,352.86 80.0 8/1/97 9.625 123,000.00 Y
10218006330 167,897.88 75.0 12/1/98 11.750 224,000.00 Y
10218006350 79,965.54 80.0 2/1/99 10.125 100,000.00 Y
10218006356 179,947.05 80.0 7/1/97 11.875 225,000.00 Y
10218006374 129,825.27 85.4 1/1/99 8.750 152,000.00 Y
10218006394 37,800.00 70.0 2/1/99 8.625 54,000.00 Y
10218006452 210,000.00 71.6 8/1/97 11.375 293,000.00 Y
10218006465 52,471.32 70.0 2/1/99 9.000 75,000.00 N
10218006469 180,000.00 80.3 8/1/97 10.375 224,000.00 Y
10218006479 110,800.00 80.0 2/1/99 11.500 138,500.00 Y
10218006543 80,000.00 33.3 8/1/97 8.750 240,000.00 N
10218006545 117,300.00 85.0 2/1/99 8.750 138,000.00 Y
10218006552 98,442.48 82.0 7/1/97 10.875 120,000.00 Y
10218006561 58,500.00 90.0 2/1/99 8.375 65,000.00 Y
10218006587 119,372.79 90.0 2/1/99 9.625 132,700.00 Y
10218006623 60,000.00 75.0 2/1/99 11.500 80,000.00 Y
10218006625 500,000.00 69.4 2/1/99 10.375 720,000.00 Y
10218006648 83,700.00 84.9 2/1/99 10.625 98,500.00 Y
10218006655 107,100.00 90.0 2/1/99 9.750 119,000.00 Y
10218006672 176,423.98 46.4 7/1/97 10.125 380,000.00 Y
10218006683 22,715.00 70.0 2/1/99 9.000 32,450.00 Y
10218006697 165,000.00 86.8 8/1/97 9.125 190,000.00 Y
10218006698 114,300.00 90.0 2/1/99 9.875 127,000.00 Y
10218006731 46,850.00 44.3 2/1/99 10.500 106,000.00 Y
10218006863 81,640.00 64.7 2/1/99 10.500 126,000.00 Y
10218006884 56,300.00 75.0 2/1/99 9.625 75,000.00 Y
10218006885 159,300.00 90.0 2/1/99 10.250 177,000.00 Y
10218006895 225,000.00 90.0 2/1/99 9.625 250,000.00 Y
10218006897 185,326.21 70.0 2/1/99 9.750 265,000.00 Y
10218006915 44,800.00 69.4 2/1/99 9.625 64,500.00 Y
10218006951 42,500.00 85.0 2/1/99 9.000 50,000.00 Y
10218006996 188,500.00 58.0 2/1/99 11.750 325,000.00 Y
10218006997 64,260.00 90.0 2/1/99 10.250 71,400.00 Y
10218007022 45,600.00 80.0 2/1/99 11.500 57,000.00 Y
10218007034 53,975.47 90.0 2/1/99 9.875 60,000.00 Y
10218007072 192,000.00 78.3 2/1/99 9.000 245,000.00 Y
10218007096 120,000.00 74.3 2/1/99 10.000 161,500.00 Y
10218007148 50,000.00 67.5 8/1/97 9.250 74,000.00 Y
10218007220 44,782.20 64.0 2/1/99 10.500 70,000.00 Y
10218007224 35,000.00 62.5 2/1/99 9.750 56,000.00 Y
10218007226 249,950.00 83.3 2/1/99 9.750 300,000.00 Y
10218007230 171,875.81 88.1 1/1/99 8.500 195,000.00 Y
10218007342 112,587.45 85.9 1/1/99 9.750 131,000.00 Y
10218007346 84,974.29 44.7 2/1/99 11.750 190,000.00 Y
10218007357 171,823.95 90.0 2/1/99 10.000 191,000.00 Y
10218007396 77,812.39 72.2 2/1/99 9.750 108,000.00 Y
10218007400 124,000.00 80.0 2/1/99 10.375 155,000.00 N
10218007403 106,250.00 85.0 2/1/99 11.875 125,000.00 Y
10218007466 58,650.00 85.0 2/1/99 9.000 69,000.00 Y
10218007490 51,986.70 80.0 2/1/99 12.500 65,000.00 Y
</TABLE>
<PAGE>
Alliance Funding Company Page 13 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
MLC158 10218007505 RICHIUSA MARIANNA 85,000.00 SF 785.48
MLC158 10218007537 DAKA TUSH 138,000.00 SF 1,198.32
MLC158 10218007639 BAEZ MIGUEL A 157,600.00 SF 1,354.03
MLC158 10218007650 MOLL HELGA 48,000.00 SF 364.83
MLC158 10218007661 GREENLEE DANIEL R 115,000.00 SF 1,073.50
MLC158 10218007662 KELLY ROSE 63,000.00 SF 547.06
MLC158 10218007674 MOORE RUSSELL 51,000.00 MF 410.36
MLC158 10218007675 GROFT WILLIAM J 30,000.00 SF 255.00
MLC158 10218007689 SANTOS JOSE DE LOS 134,100.00 MF 1,277.06
MLC158 10218007747 HUTCHINS LEONARD 100,000.00 SF 896.10
MLC158 10218007841 HAINES BRYAN R 58,400.00 SF 539.67
MLC158 10218007867 TATE SHELTON L 76,000.00 SF 767.15
MLC158 10218007897 LALLY ISABEL 120,000.00 MF 1,042.02
MLC158 10218007904 STUART SCOTT Y 371,450.00 SF 2,955.42
MLC158 10218007915 YUKA JOSEPH G 84,500.00 SF 828.75
MLC158 10218007929 MCINTYRE DONALD J 100,000.00 SF 868.35
MLC158 10218007952 DESRRAVINE MARIA J 120,000.00 MF 1,019.99
MLC158 10218007996 HELGESON CLYDE E 59,500.00 SF 516.67
MLC158 10218008121 BROWN ZIGMOND M 82,800.00 SF 741.97
----------- ---------- ------------- ----------
141 Sale Total 17,084,174.00 155,459.20
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10218007505 85,000.00 57.8 8/1/97 10.625 147,000.00 Y
10218007537 138,000.00 75.0 8/1/97 9.875 184,000.00 Y
10218007639 157,600.00 80.0 2/1/99 9.750 197,000.00 Y
10218007650 48,000.00 84.9 2/1/99 8.375 56,500.00 Y
10218007661 115,000.00 84.9 2/1/99 10.750 135,300.00 Y
10218007662 63,000.00 90.0 2/1/99 9.875 70,000.00 Y
10218007674 51,000.00 45.5 2/1/99 9.000 112,000.00 N
10218007675 29,985.63 27.2 2/1/99 9.625 110,000.00 Y
10218007689 134,100.00 90.0 2/1/99 11.000 149,000.00 Y
10218007747 99,958.07 68.9 8/1/97 10.250 145,000.00 Y
10218007841 58,377.41 80.0 7/1/97 10.625 73,000.00 Y
10218007867 75,976.17 80.0 2/1/99 11.750 95,000.00 Y
10218007897 119,890.51 54.5 7/1/97 9.875 220,000.00 Y
10218007904 371,450.00 85.0 8/1/97 8.875 437,000.00 Y
10218007915 84,472.24 65.0 8/1/97 11.375 130,000.00 Y
10218007929 100,000.00 75.1 2/1/99 9.875 133,000.00 Y
10218007952 119,942.51 80.0 7/1/97 9.625 150,000.00 Y
10218007996 59,500.00 85.0 8/1/97 9.875 70,000.00 Y
10218008121 82,800.00 90.0 2/1/99 10.250 92,000.00 Y
------------- ---- ------ -------------
17,077,927.02 78.3 10.435 22,643,953.00
</TABLE>
<PAGE>
Alliance Funding Company Page 14 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
MLC159 10218001337 FOURNIER ANN MARIE 90,000.00 SF 748.57
MLC159 10218002829 GONZALEZ PETER 144,000.00 MF 1,223.98
MLC159 10218004576 DENGLER PAUL M JR 226,400.00 SF 2,092.16
MLC159 10218004817 MCHUGH BERNARD J 295,000.00 MF 2,507.47
MLC159 10218005020 EVERARD TIMOTHY J 41,500.00 SF 410.97
MLC159 10218006060 MCMANUS MARK B 41,000.00 SF 352.25
MLC159 10218006187 HULANICK RICHARD 80,800.00 MF 694.20
MLC159 10218006526 CLAUSE FRANK A JR 161,600.00 SF 1,569.56
MLC159 10218006656 TURNER NORMAN E 46,750.00 SF 363.62
MLC159 10218007100 BROOK MARLENE M 207,000.00 MF 1,893.51
MLC159 10218007549 BAKER R GERALD 105,400.00 SF 983.89
MLC159 10218008140 GUNTER DALLAS 126,000.00 SF 1,094.12
MLC159 10218008151 EVERETT JOSEPH D 188,000.00 SF 1,825.97
MLC159 10218008162 SNELLBAKER THEODORE J 80,000.00 SF 679.99
MLC159 10218008214 BUCHER ROBERT L JR 69,000.00 SF 644.10
MLC159 10218008225 WILES RONALD D 62,000.00 SF 493.30
MLC159 10218008227 FIGHERA FRANK R JR 54,200.00 MF 500.86
MLC159 10218008228 PRIDHAM ROANLD G 221,000.00 SF 2,062.99
MLC159 10218008262 BLANC JEANIE S 158,400.00 SF 1,553.53
MLC159 10218008328 REID CARLTON 131,000.00 MF 1,222.86
MLC159 10218008347 FULLER LINDA 192,525.00 SF 1,797.18
MLC159 10218008356 WIZNA BRYAN R 260,000.00 SF 2,402.65
MLC159 10218008377 VELESKO DON 30,000.00 SF 257.75
MLC159 10218008405 SCALLION GERALD P JR 34,450.00 SF 295.98
MLC159 10218008407 LEONARDO RACHEL N 85,000.00 MF 753.80
MLC159 10218008421 RUNKLE KENNETH K 61,500.00 SF 644.46
MLC159 10218008447 GORDON DAHLIA 80,000.00 SF 784.61
MLC159 10218008458 KENNEDY JAMES V 89,000.00 SF 716.11
MLC159 10218008464 MCHALE JOANN 43,500.00 SF 414.26
MLC159 10218008489 WILLIAMS MARK J 199,750.00 SF 1,607.23
MLC159 10218008492 BROWN ROBERT B 62,000.00 SF 526.99
MLC159 10218008532 RIPPER MARY M 300,000.00 SF 2,468.03
MLC159 10218008547 BROOKS TONYA J 33,000.00 SF 320.52
MLC159 10218008553 SANDOVAL JOSE OSCAR 184,000.00 SF 1,683.12
MLC159 10218008609 UMOH AKANIMOH I 40,000.00 SF 373.39
MLC159 10218008614 FIGUEROA GUMERCINDO 70,460.00 SF 717.99
MLC159 10218008646 SIMMONS MICHAEL DAVID 93,500.00 SF 694.23
MLC159 10218008708 OQUENDO GEORGE 49,300.00 SF 446.37
MLC159 10218008722 MISTRY GATUBHAI 159,600.00 MF 1,298.56
MLC159 10218008749 TUNIEWICZ JUDITH 187,000.00 SF 1,623.81
MLC159 10218008755 MARFYAK ANDREW G 63,000.00 SF 552.87
MLC159 10218008764 ZAZULKA WILLIAM 160,800.00 MF 1,607.74
MLC159 10218008765 MARK MARTIN 114,300.00 SF 1,088.50
MLC159 10218008779 NIXDORF RAYMOND H 121,000.00 SF 1,129.51
MLC159 10218008780 JAYNES THEODORE G 40,500.00 SF 355.42
MLC159 10218008787 JOHNSTON JAMES R 140,250.00 SF 1,335.63
MLC159 10218008811 O'BOYLE HOLLY 72,000.00 SF 665.35
MLC159 10218008817 SNOW HARRY P SR 42,330.00 SF 340.60
MLC159 10218008823 WALTERS STEVEN K 112,500.00 SF 997.68
MLC159 10218008859 ESPOSITO VINCENT 148,750.00 SF 1,360.67
MLC159 10218008863 TEDESCO DAVID S 196,200.00 SF 1,667.68
MLC159 10218008894 DRAKSIN ZORA 130,000.00 MF 1,287.38
MLC159 10218008917 GONZALEZ RAFAEL D 135,000.00 SF 1,247.53
MLC159 10218008938 MARTINEZ MARIA L 118,800.00 SF 1,031.60
MLC159 10218008973 BAUM JOYCE E 61,500.00 SF 539.71
MLC159 10218008977 HERMAN ROBERT E 104,000.00 SF 1,099.87
MLC159 10218008990 SELVER WALTER 109,900.00 SF 914.09
MLC159 10218008994 TAUZANA AMELIA M 128,700.00 SF 1,153.28
MLC159 10218009011 TORNABENE PHILIP F 62,475.00 SF 583.19
MLC159 10218009025 DIGRAZIO PASQUALE A JR 100,800.00 SF 875.29
MLC159 10218009056 WILLIAMS BARBARA R 54,000.00 SF 468.91
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10218001337 89,816.08 65.6 5/1/97 9.375 137,000.00 Y
10218002829 143,791.40 90.0 6/1/97 9.625 160,000.00 Y
10218004576 226,400.00 80.0 8/1/97 10.625 283,000.00 Y
10218004817 294,858.68 55.1 7/1/97 9.625 535,000.00 N
10218005020 41,486.74 63.8 1/1/99 11.500 65,000.00 Y
10218006060 41,000.00 74.8 2/1/99 9.750 54,750.00 Y
10218006187 80,662.44 80.0 1/1/99 9.750 101,000.00 Y
10218006526 161,600.00 80.0 2/1/99 11.250 202,000.00 Y
10218006656 46,722.40 85.0 2/1/99 8.625 55,000.00 Y
10218007100 207,000.00 90.0 2/1/99 10.500 230,000.00 N
10218007549 105,400.00 85.0 2/1/99 10.750 124,000.00 Y
10218008140 126,000.00 90.0 2/1/99 9.875 140,000.00 Y
10218008151 188,000.00 80.0 8/1/97 11.250 235,000.00 Y
10218008162 79,923.05 89.9 7/1/97 9.625 88,900.00 Y
10218008214 68,974.03 65.7 2/1/99 10.750 105,000.00 Y
10218008225 62,000.00 72.2 9/1/97 8.875 85,800.00 Y
10218008227 54,179.04 79.9 7/1/97 10.625 67,800.00 Y
10218008228 220,916.80 85.0 2/1/99 10.750 260,000.00 Y
10218008262 158,347.97 80.0 8/1/97 11.375 198,000.00 Y
10218008328 130,950.68 74.4 2/1/99 10.750 176,000.00 Y
10218008347 192,452.52 85.0 1/1/99 10.750 226,500.00 Y
10218008356 259,899.43 80.0 7/1/97 10.625 325,000.00 Y
10218008377 29,986.00 30.6 2/1/99 9.750 98,000.00 Y
10218008405 34,450.00 65.0 2/1/99 9.750 53,000.00 N
10218008407 85,000.00 54.8 2/1/99 10.125 155,000.00 Y
10218008421 61,483.35 70.6 2/1/99 12.250 87,000.00 Y
10218008447 80,000.00 80.0 8/1/97 11.375 100,000.00 Y
10218008458 88,951.39 83.1 2/1/99 9.000 107,000.00 Y
10218008464 43,500.00 75.0 2/1/99 11.000 58,000.00 Y
10218008489 199,640.90 85.0 2/1/99 9.000 235,000.00 Y
10218008492 61,970.30 70.4 2/1/99 9.625 88,000.00 Y
10218008532 299,370.65 60.0 4/1/97 9.250 500,000.00 Y
10218008547 33,000.00 70.2 8/1/97 11.250 47,000.00 Y
10218008553 183,926.88 80.0 2/1/99 10.500 230,000.00 Y
10218008609 39,984.94 40.0 2/1/99 10.750 100,000.00 Y
10218008614 70,439.27 80.9 8/1/97 11.875 87,000.00 Y
10218008646 93,500.00 85.0 8/1/97 8.125 110,000.00 Y
10218008708 49,300.00 85.0 2/1/99 10.375 58,000.00 Y
10218008722 159,600.00 70.0 8/1/97 9.125 228,000.00 Y
10218008749 187,000.00 69.2 2/1/99 9.875 270,000.00 Y
10218008755 62,972.13 90.0 2/1/99 10.000 70,000.00 Y
10218008764 160,800.00 80.0 8/1/97 11.625 201,000.00 Y
10218008765 114,259.25 90.0 2/1/99 11.000 127,000.00 Y
10218008779 121,000.00 74.9 2/1/99 10.750 161,500.00 Y
10218008780 40,500.00 90.0 2/1/99 10.000 45,000.00 Y
10218008787 140,250.00 85.0 2/1/99 11.000 165,000.00 Y
10218008811 71,972.15 90.0 1/1/99 10.625 80,000.00 Y
10218008817 42,330.00 85.0 2/1/99 9.000 49,800.00 Y
10218008823 112,451.54 75.0 8/1/97 10.125 150,000.00 Y
10218008859 148,750.00 85.0 2/1/99 10.500 175,000.00 Y
10218008863 196,200.00 90.0 2/1/99 9.625 218,000.00 Y
10218008894 130,000.00 63.4 2/1/99 11.500 205,000.00 Y
10218008917 135,000.00 90.0 2/1/99 10.625 150,000.00 Y
10218008938 118,800.00 90.0 2/1/99 9.875 132,000.00 Y
10218008973 61,472.79 63.7 2/1/99 10.000 96,500.00 Y
10218008977 103,972.63 80.0 2/1/99 12.375 130,000.00 Y
10218008990 109,900.00 70.0 2/1/99 9.375 157,000.00 Y
10218008994 128,700.00 90.0 2/1/99 10.250 143,000.00 Y
10218009011 62,475.00 83.3 2/1/99 10.750 75,000.00 Y
10218009025 100,749.50 90.0 7/1/97 9.875 112,000.00 Y
10218009056 54,000.00 90.0 2/1/99 9.875 60,000.00 Y
</TABLE>
<PAGE>
Alliance Funding Company Page 15 3/17/97
A division of Superior Bank FSB
Sale Schedule B
<TABLE>
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
MLC159 10218009069 FASSBENDER WILLIAM J III 129,000.00 SF 1,096.49
MLC159 10218009091 AMBRUSO DANIEL J 222,400.00 SF 1,910.76
MLC159 10218009097 YELLICO MARK 112,600.00 SF 1,040.53
MLC159 10218009098 MUENCH MICHAEL 108,000.00 SF 947.78
MLC159 10218009109 BRAY LESLEY J EVELEIGH 129,200.00 SF 1,121.91
MLC159 10218009117 MCLAURIN MARYANN 437,750.00 SF 3,801.19
MLC159 10218009124 DANIELS LISA B 75,000.00 SF 815.02
MLC159 10218009127 KING DOROTHY L BRADSHAW 73,950.00 SF 697.27
MLC159 10218009157 ALLEN JAMES P 116,000.00 SF 1,305.90
MLC159 10218009165 DOVIDIO MICHAEL J 66,400.00 SF 522.37
MLC159 10218009169 KAHUY HARRY 123,500.00 SF 1,176.12
MLC159 10218009193 DANCIU GRIGORE 337,500.00 SF 3,087.25
MLC159 10218009216 SWEADE DEBORAH 54,400.00 SF 462.39
MLC159 10218009232 BENNETT JUDITH 54,000.00 SF 458.99
MLC159 10218009247 INCENDIO JOSEPH R 180,000.00 SF 1,748.27
MLC159 10218009264 CHISOLM ALVIN 53,380.00 SF 429.51
MLC159 10218009269 PLOTKIN NANCY 360,000.00 SF 2,864.32
MLC159 10218009290 HERALD MARY JANE 53,000.00 MF 514.77
MLC159 10218009299 CRAIGG AVE 207,000.00 SF 1,797.48
MLC159 10218009310 CARTEGNA JOHN A 104,000.00 SF 1,020.00
MLC159 10218009313 FLOWERS DAVID A 96,300.00 SF 827.37
MLC159 10218009360 HNATKO WILLIAM 73,950.00 SF 697.27
MLC159 10218009373 SEARS MATTURE S 84,000.00 SF 855.96
MLC159 10218009374 MEADOR RONALD G 200,000.00 SF 1,755.14
MLC159 10218009394 MONTERIO JUNE C 218,450.00 SF 1,977.86
MLC159 10218009410 GUTIERREZ JUAN E 182,400.00 SF 1,451.26
MLC159 10218009422 JOHNSON DIANA THOMAS 69,250.00 MF 588.62
MLC159 10218009438 MCLAUGHLIN ROBERTA 91,200.00 SF 973.34
MLC159 10218009454 FROELICH DAVID 81,000.00 SF 771.38
MLC159 10218009491 JOHNSON ROBERT H 196,000.00 SF 1,922.30
MLC159 10218009536 KORZINEK NIKOLINA 81,100.00 SF 741.85
MLC159 10218009538 HANDLER LAWRENCE L 473,790.00 SF 3,983.88
MLC159 10218009539 PARROTT GERALD 112,500.00 SF 997.68
MLC159 10218009572 GAITHER ULYSSES 79,900.00 MF 798.87
MLC159 10218009586 NOWAKOWSKI DEAN 113,600.00 SF 1,081.84
MLC159 10218009651 GREINER KIM E 59,200.00 SF 497.79
MLC159 10218009739 HASNAIN NADIRA 158,950.00 SF 1,236.30
MLC159 10218009743 ZIZAK OTTO 91,800.00 SF 797.14
MLC159 10218009754 FELDER JAMES A 81,000.00 SF 710.83
MLC159 10218009771 TRASTELIS STACY 194,000.00 SF 1,774.59
MLC159 10218009817 TRAVERSI ROBERT M 128,000.00 SF 972.89
MLC159 10218009919 COORE ELCORDIUS 219,600.00 MF 2,091.30
MLC159 10218009991 SADAKA ROBERT 324,000.00 SF 3,301.56
MLC159 10218010009 LILIEROSE SCOTT A 29,900.00 MF 287.01
MLC159 10218010011 LILIEROSE SCOTT A 94,850.00 SF 885.41
MLC159 10218010051 CALLAHAN FLOYD M 87,100.00 SF 804.89
MLC159 10218010052 HEBERT ALFRED R 166,400.00 SF 1,616.18
MLC159 10218010059 CZEGLEDI HANNAH M 121,550.00 SF 1,180.57
MLC159 10218010082 TUFF ALFRED 350,000.00 SF 3,007.04
MLC159 10218010108 COOVERT DONALD E 189,000.00 SF 1,470.02
MLC159 10218010133 WHITFIELD MATTIE P. 45,600.00 SF 417.12
MLC159 10218010195 FELDMAN MARK 261,180.00 SF 2,220.00
MLC159 10218010325 CHOU SU YUEH 195,400.00 SF 1,972.39
MLC159 10218010379 HORNE SALLIE P 73,600.00 SF 625.59
MLC159 10218010440 KREIDER KARL 99,000.00 SF 823.43
MLC159 10218010444 NORDER ROBERT E 160,225.00 SF 1,465.64
MLC159 10218010482 LEVINE LOUIS 89,000.00 MF 748.36
MLC159 10218010484 AUBYN EDMUND ST 75,000.00 SF 679.06
MLC159 10218010543 ALBINO ROBERTO SR 41,200.00 SF 439.71
MLC159 10218010668 CIPRIANO REGINA M 70,000.00 SF 633.78
MLC159 10218010836 VIELDHOUSE JOHN D 500,000.00 SF 4,249.95
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10218009069 129,000.00 48.3 2/1/99 9.625 267,000.00 Y
10218009091 222,400.00 80.0 2/1/99 9.750 278,000.00 Y
10218009097 112,556.45 84.9 7/1/97 10.625 132,500.00 Y
10218009098 107,952.22 90.0 8/1/97 10.000 120,000.00 Y
10218009109 129,200.00 85.0 8/1/97 9.875 152,000.00 Y
10218009117 437,750.00 85.0 8/1/97 9.875 515,000.00 Y
10218009124 75,000.00 79.7 3/1/99 12.750 94,000.00 Y
10218009127 73,950.00 87.0 2/1/99 10.875 85,000.00 Y
10218009157 116,000.00 80.0 2/1/99 13.250 145,000.00 Y
10218009165 66,400.00 80.0 3/1/99 8.750 83,000.00 Y
10218009169 123,500.00 82.3 2/1/99 11.000 150,000.00 Y
10218009193 337,365.88 75.0 1/1/99 10.500 450,000.00 Y
10218009216 54,400.00 85.0 2/1/99 9.625 64,000.00 Y
10218009232 53,974.14 90.0 2/1/99 9.625 60,000.00 Y
10218009247 180,000.00 75.0 2/1/99 11.250 240,000.00 Y
10218009264 53,380.00 85.0 2/1/99 9.000 62,800.00 Y
10218009269 360,000.00 80.0 2/1/99 8.875 450,000.00 Y
10218009290 53,000.00 75.7 3/1/99 11.250 70,000.00 Y
10218009299 207,000.00 90.0 2/1/99 9.875 230,000.00 Y
10218009310 103,965.83 77.9 2/1/99 11.375 133,500.00 Y
10218009313 96,255.07 90.0 2/1/99 9.750 107,000.00 Y
10218009360 73,950.00 85.0 2/1/99 10.875 87,000.00 Y
10218009373 84,000.00 80.0 8/1/97 11.875 105,000.00 Y
10218009374 200,000.00 76.3 2/1/99 10.000 262,000.00 Y
10218009394 218,450.00 85.0 8/1/97 10.375 257,000.00 Y
10218009410 182,400.00 80.0 8/1/97 8.875 228,000.00 Y
10218009422 69,250.00 84.9 8/1/97 9.625 81,500.00 Y
10218009438 91,200.00 80.0 2/1/99 12.500 114,000.00 Y
10218009454 80,971.12 75.0 2/1/99 11.000 108,000.00 Y
10218009491 195,935.62 80.0 8/1/97 11.375 245,000.00 Y
10218009536 81,100.00 84.9 2/1/99 10.500 95,500.00 Y
10218009538 473,790.00 80.9 2/1/99 9.500 585,000.00 Y
10218009539 112,500.00 90.0 8/1/97 10.125 125,000.00 Y
10218009572 79,900.00 85.0 2/1/99 11.625 94,000.00 Y
10218009586 113,559.49 80.0 2/1/99 11.000 142,000.00 Y
10218009651 59,200.00 80.0 2/1/99 9.500 74,000.00 Y
10218009739 158,950.00 85.0 2/1/99 8.625 187,000.00 Y
10218009743 91,800.00 85.0 8/1/97 9.875 108,000.00 Y
10218009754 81,000.00 49.0 2/1/99 10.000 165,000.00 Y
10218009771 194,000.00 78.2 2/1/99 10.500 248,000.00 Y
10218009817 127,920.44 80.0 2/1/99 8.375 160,000.00 Y
10218009919 219,600.00 90.0 2/1/99 11.000 244,000.00 Y
10218009991 324,000.00 80.0 9/1/97 11.875 405,000.00 Y
10218010009 29,889.57 65.0 1/1/99 11.100 46,000.00 N
10218010011 94,814.29 70.0 1/1/99 10.750 135,500.00 Y
10218010051 87,066.31 65.0 8/1/97 10.625 134,000.00 Y
10218010052 166,400.00 80.0 2/1/99 11.250 208,000.00 Y
10218010059 121,550.00 85.0 2/1/99 11.250 143,000.00 Y
10218010082 350,000.00 46.6 2/1/99 9.750 750,000.00 Y
10218010108 189,000.00 90.0 3/1/99 8.625 210,000.00 Y
10218010133 45,581.88 76.0 2/1/99 10.500 60,000.00 Y
10218010195 261,054.88 80.0 8/1/97 9.625 326,475.00 Y
10218010325 195,281.22 84.9 1/1/99 11.750 229,900.00 Y
10218010379 73,600.00 80.0 3/1/99 9.625 92,000.00 Y
10218010440 98,950.01 90.0 7/1/97 9.375 110,000.00 Y
10218010444 160,225.00 85.0 3/1/99 10.500 188,500.00 Y
10218010482 89,000.00 70.6 8/1/97 9.500 126,000.00 N
10218010484 75,000.00 60.0 2/1/99 10.375 125,000.00 Y
10218010543 41,200.00 80.0 3/1/99 12.500 51,500.00 Y
10218010668 70,000.00 84.3 3/1/99 10.375 83,000.00 Y
10218010836 500,000.00 67.1 8/1/97 9.625 745,000.00 Y
</TABLE>
<PAGE>
Alliance Funding Company Page 16 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
MLC159 10218010858 LESCHEK ROBERT 200,000.00 SF 1,810.81
MLC159 10218010876 VINCENT MONIQUE 168,300.00 SF 1,430.53
MLC159 10218010877 GOODSON DORIS C 54,800.00 SF 480.91
MLC159 10218010894 REESE EUGENE R 133,500.00 SF 1,246.20
MLC159 10218010924 LINK RALPH 60,000.00 SF 640.35
MLC159 10218010940 HIBSHMAN KIRK R 41,170.00 SF 365.10
MLC159 10218010951 LEWANDOWSKI SHURLA 71,200.00 SF 752.99
MLC159 10218011079 ANZALONE GREGG 252,000.00 SF 2,141.97
MLC159 10218011119 SILVERMAN HENRY 84,150.00 SF 654.51
MLC159 10218011231 NACLERIO EDWARD 172,000.00 SF 1,638.00
MLC159 10218011312 MARTINEZ WANDA L 68,800.00 SF 754.35
----------- ---------- ------------- ----------
133 Sale Total 17,362,435.00 156,114.65
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10218010858 200,000.00 84.7 9/1/97 10.375 236,000.00 Y
10218010876 168,300.00 90.0 2/1/99 9.625 187,000.00 Y
10218010877 54,800.00 80.0 3/1/99 10.000 68,500.00 Y
10218010894 133,449.74 75.0 2/1/99 10.750 178,000.00 Y
10218010924 60,000.00 80.0 3/1/99 12.500 75,000.00 Y
10218010940 41,140.85 70.9 2/1/99 10.125 58,000.00 Y
10218010951 71,200.00 80.0 2/1/99 12.375 89,000.00 Y
10218011079 252,000.00 90.0 9/1/97 9.625 280,000.00 Y
10218011119 84,150.00 85.0 3/1/99 8.625 99,000.00 Y
10218011231 172,000.00 80.0 9/1/97 11.000 215,000.00 Y
10218011312 68,800.00 80.9 3/1/99 12.875 85,000.00 Y
-------------------- --------------------------
17,359,019.94 78.9 10.281 22,511,725.00
</TABLE>
<PAGE>
Alliance Funding Company Page 17 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<S> <C> <C> <C> <C> <C>
ML160 10216101013 KJELLBERG CARL SR 126,400.00 SF 1,025.92
ML160 10216111754 PALMER CLYDE K 112,000.00 SF 1,293.00
ML160 10216122260 CIRULLO SANDRA 73,500.00 SF 706.34
ML160 10216124905 KRITIKOS TONY 150,000.00 SF 1,399.45
ML160 10216127177 MAYER J CHRISTOPHER 80,900.00 SF 702.49
ML160 10216135742 WITZEL PHILIP 167,000.00 SF 1,590.38
ML160 10216136418 HARO GREGORIO 42,700.00 SF 406.64
ML160 10216136420 BURNSIDE ELIZABETH A 67,900.00 SF 627.46
ML160 10216137830 AL-MAQHZUMI MUSLEM 45,000.00 MF 374.29
ML160 10216138186 SANDOVAL CAROLINE 30,600.00 SF 288.52
ML160 10216138194 BOOTS JR JAMES L 80,700.00 SF 730.66
ML160 10216138567 NORTON RICHARD A 88,000.00 SF 708.07
ML160 10216138635 JOHNSON RICHARD ALVA 76,400.00 SF 614.73
ML160 10216138744 HENNEKE GREGORY L 55,000.00 MF 427.78
ML160 10216138842 MORGAN JOSEPH E 89,600.00 MF 712.90
ML160 10216138896 LEMONS MARY LOU 116,000.00 SF 1,193.19
ML160 10216138951 ABDULREDA HASSAN 34,900.00 SF 332.36
ML160 10216138966 KEARNS GEORGE 71,200.00 SF 732.37
ML160 10216139051 CORPOLONGO DONALD L 144,500.00 SF 1,136.78
ML160 10216139309 HURT JAMES A 24,500.00 SF 237.96
ML160 10216139417 WINGATE CHARLES 35,000.00 MF 320.16
ML160 10216139797 FRAU JUDITH 65,000.00 SF 564.43
ML160 10216139810 CRUZ JR ANIBAL 62,400.00 SF 665.97
ML160 10216139895 PASCUA JOMER 115,200.00 SF 1,032.31
ML160 10216139929 ALANDER ERIK 148,000.00 SF 1,257.99
ML160 10216139963 HALABI AMAL 52,000.00 SF 505.06
ML160 10216139967 FARHAT ZEINAB 32,000.00 SF 248.89
ML160 10216140032 LUGARDO FEDERICO 217,800.00 MF 1,971.98
ML160 10216140107 RASHEED KARRIEM 180,000.00 MF 1,596.28
ML160 10216140108 GILNA DEREK A 41,200.00 SF 353.97
ML160 10216140255 HENRION RUBY I 45,000.00 SF 428.55
ML160 10216140367 AL-MAQHZUMI HUSSAIN 36,000.00 SF 306.00
ML160 10216140376 RIEDE KENNETH C 76,500.00 SF 657.25
ML160 10216140425 MESSANA BONNIE 103,700.00 SF 1,007.20
ML160 10216140437 CLARK HATTIE J 72,200.00 SF 701.25
ML160 10216140440 ALFOAADY ALAALDEEN 60,300.00 SF 540.35
ML160 10216140594 AL-REFO MISLEH 81,900.00 MF 681.20
ML160 10216140686 ALSHARA AHMAD 76,500.00 SF 636.29
ML160 10216140687 AL-HUSSEINY ABDUL 53,100.00 SF 441.66
ML160 10216140688 AL-AMIRI ANEES 103,500.00 MF 927.46
ML160 10216140831 HASSE JUDY I 142,000.00 SF 1,168.20
ML160 10216140832 AL-MOSAWI AKEL 75,600.00 SF 677.45
ML160 10216140833 BERDAN LINDA H 68,000.00 SF 725.74
ML160 10216140834 SMITH KAREN 72,000.00 SF 631.85
ML160 10216140929 AL-HECHEMY HAIDER 72,000.00 SF 645.19
ML160 10216141004 LILLGE MICHAEL L 65,000.00 SF 505.56
ML160 10216141097 REDMAN LAWRENCE 99,000.00 SF 868.80
ML160 10216141108 AL-GEBURY AIAD 67,900.00 SF 608.45
ML160 10216141202 LOCOCO RALPH N 116,200.00 SF 1,106.60
ML160 10216141213 SLATTERY MARY H 119,800.00 SF 953.18
ML160 10216141222 WIRE MARK J 59,200.00 SF 503.19
ML160 10216141305 DANFORTH REBECCA L 62,800.00 SF 609.95
ML160 10216141317 YOUNO ROBERT H 120,700.00 SF 938.79
ML160 10216141397 VERNOR FREDRICK W 68,100.00 SF 693.94
ML160 10216141439 TROUT JERE 102,400.00 SF 1,112.77
ML160 10216141445 KANOON BITO K 240,300.00 SF 2,064.55
ML160 10216141447 RETZLAFF SUSAN V 77,000.00 SF 661.55
ML160 10216141501 SOBEH ZI FOUKAR M 57,600.00 SF 625.94
ML160 10216141508 AL-DHALEMI AHMED 45,900.00 SF 390.15
ML160 10216141514 WUTWUT QAISER H 84,600.00 SF 719.09
ML160 10216141554 DUNN MARK A 72,800.00 SF 618.80
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10216101013 123,954.15 80.0 9/1/97 10.125 158,000.00 Y
10216111754 111,689.27 80.0 11/1/97 13.625 140,000.00 Y
10216122260 73,284.47 75.0 2/1/98 11.125 98,000.00 Y
10216124905 149,571.50 65.2 8/1/97 10.750 230,000.00 Y
10216127177 80,713.19 89.8 9/1/97 10.875 90,000.00 Y
10216135742 166,864.69 87.8 11/1/98 11.000 190,000.00 Y
10216136418 42,684.78 74.9 2/1/99 11.000 57,000.00 Y
10216136420 67,819.98 84.8 5/1/97 10.625 80,000.00 Y
10216137830 45,000.00 90.0 8/1/97 9.375 50,000.00 Y
10216138186 30,600.00 80.5 2/1/99 10.875 38,000.00 Y
10216138194 80,700.00 84.9 8/1/97 10.375 95,000.00 Y
10216138567 88,000.00 77.1 2/1/99 9.000 114,000.00 Y
10216138635 76,400.00 84.8 2/1/99 9.000 90,000.00 Y
10216138744 55,000.00 64.7 2/1/99 8.625 85,000.00 N
10216138842 89,600.00 70.0 2/1/99 8.875 128,000.00 N
10216138896 116,000.00 80.0 2/1/99 12.000 145,000.00 Y
10216138951 34,900.00 69.8 2/1/99 11.000 50,000.00 Y
10216138966 71,200.00 80.0 2/1/99 12.000 89,000.00 Y
10216139051 144,500.00 84.0 2/1/99 8.750 172,000.00 Y
10216139309 24,500.00 70.0 3/1/99 11.250 35,000.00 Y
10216139417 35,000.00 68.6 2/1/99 10.500 51,000.00 Y
10216139797 65,000.00 86.6 3/1/99 9.875 75,000.00 Y
10216139810 62,400.00 80.0 2/1/99 12.500 78,000.00 Y
10216139895 115,200.00 90.0 3/1/99 10.250 128,000.00 Y
10216139929 148,000.00 66.0 8/1/97 9.625 224,000.00 Y
10216139963 51,882.44 80.0 7/1/97 11.250 65,000.00 Y
10216139967 32,000.00 76.1 2/1/99 8.625 42,000.00 Y
10216140032 217,800.00 90.0 3/1/99 10.375 242,000.00 Y
10216140107 180,000.00 90.0 2/1/99 10.125 200,000.00 Y
10216140108 41,180.78 54.9 7/1/97 9.750 75,000.00 N
10216140255 45,000.00 54.2 2/1/99 11.000 83,000.00 Y
10216140367 36,000.00 90.0 9/1/97 9.625 40,000.00 Y
10216140376 76,464.31 75.0 8/1/97 9.750 102,000.00 Y
10216140425 103,664.99 85.0 2/1/99 11.250 122,000.00 Y
10216140437 72,200.00 84.9 2/1/99 11.250 85,000.00 Y
10216140440 60,300.00 90.0 2/1/99 10.250 67,000.00 Y
10216140594 81,900.00 86.2 8/1/97 9.375 95,000.00 Y
10216140686 76,500.00 88.9 8/1/97 9.375 86,000.00 Y
10216140687 53,100.00 90.0 8/1/97 9.375 59,000.00 Y
10216140688 103,500.00 88.4 2/1/99 10.250 117,000.00 Y
10216140831 141,926.38 78.8 2/1/99 9.250 180,000.00 Y
10216140832 75,568.30 90.0 2/1/99 10.250 84,000.00 Y
10216140833 68,000.00 78.1 3/1/99 12.500 87,000.00 Y
10216140834 72,000.00 68.5 3/1/99 10.000 105,000.00 Y
10216140929 72,000.00 86.7 2/1/99 10.250 83,000.00 Y
10216141004 65,000.00 65.0 2/1/99 8.625 100,000.00 Y
10216141097 99,000.00 70.2 9/1/97 10.000 141,000.00 Y
10216141108 67,900.00 87.0 2/1/99 10.250 78,000.00 Y
10216141202 116,200.00 74.9 2/1/99 11.000 155,000.00 Y
10216141213 119,800.00 78.3 9/1/97 8.875 153,000.00 Y
10216141222 59,200.00 80.0 2/1/99 9.625 74,000.00 Y
10216141305 62,800.00 52.3 9/1/97 11.250 120,000.00 Y
10216141317 120,700.00 85.0 2/1/99 8.625 142,000.00 Y
10216141397 68,100.00 78.2 2/1/99 11.875 87,000.00 Y
10216141439 102,400.00 80.0 3/1/99 12.750 128,000.00 Y
10216141445 240,300.00 90.0 3/1/99 9.750 267,000.00 Y
10216141447 76,964.08 60.1 8/1/97 9.750 128,000.00 Y
10216141501 57,600.00 80.0 2/1/99 12.750 72,000.00 Y
10216141508 45,900.00 88.2 8/1/97 9.625 52,000.00 Y
10216141514 84,600.00 90.0 8/1/97 9.625 94,000.00 Y
10216141554 72,800.00 70.0 3/1/99 9.625 104,000.00 Y
</TABLE>
<PAGE>
Alliance Funding Company Page 18 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<C> <S> <C> <C> <C> <C>
ML160 10216141608 BYE JEROME E 76,500.00 SF 636.29
ML160 10216141662 DAVIS MICHAEL 45,500.00 MF 395.10
ML160 10216141684 EARLE SANDRA J 360,000.00 SF 3,565.05
ML160 10216141758 AL-JABUR BASIM 70,200.00 SF 583.89
ML160 10216141762 DOTSON LULA M 88,000.00 SF 956.29
ML160 10216141857 LUSBY TERRY 49,000.00 MF 513.47
ML160 10216141867 HAMID JOHN M 86,400.00 SF 734.39
ML160 10216141869 HABHAB ALI N 78,700.00 SF 697.93
ML160 10216141870 JOHNSON THOMAS M JR 123,300.00 SF 981.03
ML160 10216141923 VENCHE CARL C 117,300.00 SF 1,040.24
ML160 10216141973 FUGATE BARBARA JANE 78,300.00 SF 716.24
ML160 10216142094 SAWA SAMI N 122,000.00 SF 927.29
ML160 10216142097 AL-RESUL AMAR 67,500.00 SF 573.74
ML160 10216142118 FISHER-GILIN HALI 416,500.00 SF 3,313.86
ML160 10216142269 FAVORS ALBERT 136,000.00 SF 1,477.90
ML160 10216142356 KHREIZAT SALMAN 62,000.00 MF 471.24
ML160 10216142435 SHEPHERD TAJUANA 49,500.00 SF 438.98
ML160 10216142444 CHARAFEDDINE MOHAMAD 72,200.00 SF 593.97
ML160 10216142506 AMACK LARRY E 88,500.00 SF 736.10
ML160 10216142523 AYYASH DALAL 106,800.00 SF 1,160.59
ML160 10216142545 SHEHAB ALI I 108,900.00 MF 866.46
ML160 10216142608 DAY PATRICK R 130,500.00 SF 1,038.32
ML160 10216142799 BURGGRAAFF EDWARD 364,500.00 SF 3,165.13
ML160 10216142813 KIMBROUGH EVA 52,600.00 SF 486.08
ML160 10216142897 POINDEXTER GARY STEVEN 46,000.00 SF 366.00
ML160 10216143008 AL-BREHI HASEB 64,800.00 SF 550.79
ML160 10216143065 BOYD CLEARTS JR 37,000.00 SF 387.72
ML160 10216143072 GOKHAN SERDAR 222,600.00 MF 1,691.92
ML160 10216143211 BAIZ HUSSEIN H 132,300.00 MF 1,210.20
ML160 10216143251 ASKEW CORNEIL 39,100.00 SF 368.67
ML160 10216143298 DEATON JAMES A 105,300.00 SF 837.81
ML160 10216143367 TORTORELLA CURTIS W 165,700.00 SF 1,609.38
ML160 10216143423 AL-AMEEDI YOUSIF 85,500.00 SF 726.74
---------------------------------------------------- ---------
94 Sale Total 9,072,000.00 80,734.09
<CAPTION>
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10216141608 76,500.00 90.0 9/1/97 9.375 85,000.00 Y
10216141662 45,500.00 70.0 3/1/99 9.875 65,000.00 Y
10216141684 360,000.00 80.0 2/1/99 11.500 450,000.00 Y
10216141758 70,164.55 88.8 8/1/97 9.375 79,000.00 Y
10216141762 88,000.00 79.2 3/1/99 12.750 111,000.00 Y
10216141857 49,000.00 70.0 3/1/99 12.250 70,000.00 Y
10216141867 86,400.00 90.0 8/1/97 9.625 96,000.00 Y
10216141869 78,700.00 89.4 2/1/99 10.125 88,000.00 Y
10216141870 123,300.00 90.0 9/1/97 8.875 137,000.00 Y
10216141923 117,300.00 83.7 9/1/97 10.125 140,000.00 Y
10216141973 78,300.00 90.0 3/1/99 10.500 87,000.00 Y
10216142094 122,000.00 78.7 8/1/97 8.375 155,000.00 Y
10216142097 67,500.00 90.0 9/1/97 9.625 75,000.00 Y
10216142118 416,500.00 85.0 9/1/97 8.875 490,000.00 Y
10216142269 136,000.00 80.0 3/1/99 12.750 170,000.00 Y
10216142356 61,961.47 84.9 8/1/97 8.375 73,000.00 Y
10216142435 49,500.00 90.0 3/1/99 10.125 55,000.00 Y
10216142444 72,200.00 82.9 2/1/99 9.250 87,000.00 Y
10216142506 88,500.00 75.0 9/1/97 9.375 118,000.00 Y
10216142523 106,800.00 80.0 3/1/99 12.750 133,500.00 Y
10216142545 108,900.00 90.0 9/1/97 8.875 121,000.00 Y
10216142608 130,500.00 90.0 9/1/97 8.875 145,000.00 Y
10216142799 364,500.00 90.0 9/1/97 9.875 405,000.00 Y
10216142813 52,600.00 89.9 3/1/99 10.625 58,500.00 Y
10216142897 46,000.00 71.8 3/1/99 8.875 64,000.00 Y
10216143008 64,800.00 90.0 9/1/97 9.625 72,000.00 Y
10216143065 37,000.00 64.9 3/1/99 12.250 57,000.00 Y
10216143072 222,600.00 68.4 9/1/97 8.375 325,000.00 Y
10216143211 132,300.00 90.0 3/1/99 10.500 147,000.00 Y
10216143251 39,100.00 85.0 3/1/99 10.875 46,000.00 Y
10216143298 105,300.00 90.0 9/1/97 8.875 117,000.00 Y
10216143367 165,700.00 84.9 3/1/99 11.250 195,000.00 Y
10216143423 85,500.00 90.0 9/1/97 9.625 95,000.00 Y
------------ ---- ------ ------------
9,067,759.33 81.9 10.173 11,216,000.00
</TABLE>
<PAGE>
Alliance Funding Company Page 19 3/17/97
A division of Superior Bank FSB
<TABLE>
Sale Schedule B
1996-4 Class 2 - Initial Pool of Adjustable Rate Mortgages - Settlement 3/20/97
<CAPTION>
Principal Type of Scheduled
Balance at Mortgaged Payment
Sale ID Account Name Origination Property Int & Prin
- ------- ------- ---- ----------- --------- ----------
<S> <C> <C> <C> <C> <C>
MLC161 10218001739 KHAN SHARIF 106,250.00 MF 961.99
MLC161 10218003906 CAPARROS PERPETUO I 230,000.00 SF 1,748.16
MLC161 10218004676 LEE ANDREW 170,000.00 SF 1,322.24
MLC161 10218004793 WHITTAKER JAMES M 68,700.00 SF 686.89
MLC161 10218005932 CASTIGLIA LISA 186,400.00 SF 1,483.08
MLC161 10218005955 MULDERRIG KENNETH 153,000.00 SF 1,328.57
MLC161 10218006939 BRANCH PAUL A 157,500.00 SF 1,310.01
MLC161 10218007069 HEMPHILL DOROTHY 130,500.00 SF 1,038.32
MLC161 10218007474 PANAMA REYNALDO 100,000.00 SF 859.15
MLC161 10218008063 SASNAUSKAS JAMES 102,600.00 SF 844.06
MLC161 10218008113 MARTIN MICHAEL 131,850.00 MF 1,132.80
MLC161 10218008115 MARKS STEVEN I 252,000.00 SF 2,188.24
MLC161 10218008397 CARY ARNOLD D 305,000.00 SF 2,704.81
MLC161 10218008529 TINSLEY AVERY B 74,000.00 SF 670.01
MLC161 10218008795 STRELECKI JOSEPH J 67,500.00 MF 667.16
MLC161 10218008932 ARMSTRONG DARRELL C 112,410.00 SF 1,017.77
MLC161 10218009189 CAN ILKNUR 121,500.00 MF 966.71
MLC161 10218009207 QUIN JAMES 178,500.00 SF 1,699.90
MLC161 10218009241 ANTHOLIS JOHN K 297,000.00 SF 2,689.06
MLC161 10218009441 MEJIA MARTHA 216,750.00 SF 1,922.19
MLC161 10218009469 REED TRAVIS J 40,500.00 SF 355.42
MLC161 10218009770 WILSON PHILLIP R 89,600.00 SF 913.02
MLC161 10218009827 HICKS THERESA S 68,000.00 SF 654.01
MLC161 10218009963 AKACKI EDWARD Z 79,900.00 SF 760.91
MLC161 10218010008 BRAMLETT DORAN A. 59,500.00 SF 511.20
MLC161 10218010031 ARMOUR BOBBY 80,000.00 SF 761.86
MLC161 10218010039 THURMAN ANDREW E 342,750.00 SF 2,635.45
MLC161 10218010078 ALBANESE ROBERT 96,000.00 SF 1,005.98
MLC161 10218010143 CURRY ELIZABETH 65,000.00 SF 558.45
MLC161 10218010185 STANIS KEVIN S 189,750.00 SF 1,475.86
MLC161 10218010205 RODRIGUEZ AGUSTIN 106,250.00 SF 1,052.18
MLC161 10218010255 ZBRIZHER YAKOV 105,750.00 SF 841.39
MLC161 10218010394 MCCORD HUGH J 136,000.00 SF 1,425.14
MLC161 10218010428 KOSEK JOHN L 57,600.00 SF 592.48
MLC161 10218010544 BURRELL CHARLES L. 88,400.00 SF 735.27
MLC161 10218010592 DOMINGUEZ FABIAN E 144,500.00 SF 1,417.20
MLC161 10218010600 ZACCAGNINI DEBORAH 146,200.00 SF 1,296.53
MLC161 10218010610 GATLIN SIDNEY L 72,250.00 SF 667.66
MLC161 10218010716 HAZZARD WILLIAM H 76,500.00 SF 706.93
MLC161 10218010774 CHACOS DAVID R 82,000.00 SF 780.90
MLC161 10218010875 LEARY PATRICK J 112,500.00 SF 997.68
MLC161 10218010912 LEHAN LLOYD DANIEL IV 73,600.00 SF 728.85
MLC161 10218011019 GIAMBRONE FRANK 133,900.00 SF 1,113.71
MLC161 10218011336 BERRY JO ANNE 55,000.00 SF 442.54
MLC161 10218011351 EVON KELLY A 126,000.00 MF 1,140.81
MLC161 10218011516 GLEKAS KONSTANTINOS 300,000.00 MF 2,605.04
MLC161 10218011914 SPENCER JOHN F 252,280.00 SF 2,378.72
MLC161 10218011999 MACCI JOHN T 146,700.00 SF 1,341.92
MLC161 10218012086 PALMER LLOYD L 46,500.00 SF 408.07
MLC161 10218012488 MUNNY SHAMIMA K 344,250.00 MF 3,474.89
MLC161 10218012667 RENZI DOMINIC 160,000.00 SF 1,258.72
----------- ------------------------ ------------- ----------
51 Sale Total 7,038,640.00 62,279.91
647 Total with Merrill Lynch 75,473,052.00 676,979.99
830 Grand Total 98,978,097.00 889,207.70
Cut-off Date Original Next Current Property
Principal LTV Adjustment Mortgage Value at Owner
Account Balance Ratio Date Rate Origination Occupied
------- ------------- ----- ------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
10218001739 106,118.76 85.0 5/1/97 10.375 125,000.00 Y
10218003906 229,568.15 85.9 5/1/97 8.375 267,500.00 Y
10218004676 170,000.00 89.4 2/1/99 8.625 190,000.00 Y
10218004793 68,678.64 88.0 2/1/99 11.625 78,000.00 Y
10218005932 186,400.00 80.0 8/1/97 8.875 233,000.00 Y
10218005955 152,930.49 85.0 7/1/97 9.875 180,000.00 Y
10218006939 157,420.46 75.0 1/1/99 9.375 210,000.00 Y
10218007069 130,500.00 90.0 9/1/97 8.875 145,000.00 Y
10218007474 100,000.00 74.9 3/1/99 9.750 133,400.00 Y
10218008063 102,546.82 90.0 8/1/97 9.250 114,000.00 Y
10218008113 131,850.00 90.0 2/1/99 9.750 146,500.00 Y
10218008115 252,000.00 80.0 3/1/99 9.875 315,000.00 Y
10218008397 305,000.00 89.7 3/1/99 10.125 340,000.00 Y
10218008529 73,969.78 56.0 7/1/97 10.375 132,000.00 Y
10218008795 67,500.00 75.0 2/1/99 11.475 90,000.00 Y
10218008932 112,410.00 90.0 2/1/99 10.375 124,900.00 Y
10218009189 121,500.00 90.0 8/1/97 8.875 135,000.00 Y
10218009207 178,500.00 85.0 2/1/99 11.000 210,000.00 Y
10218009241 297,000.00 90.0 9/1/97 10.375 330,000.00 Y
10218009441 216,750.00 84.0 9/1/97 10.125 258,000.00 Y
10218009469 40,500.00 90.0 2/1/99 10.000 45,000.00 Y
10218009770 89,600.00 80.0 3/1/99 11.875 112,000.00 Y
10218009827 68,000.00 85.0 8/1/97 11.125 80,000.00 Y
10218009963 79,900.00 85.0 2/1/99 11.000 94,000.00 Y
10218010008 59,500.00 85.0 3/1/99 9.750 70,000.00 Y
10218010031 80,000.00 80.0 2/1/99 11.000 100,000.00 Y
10218010039 342,750.00 87.8 2/1/99 8.500 390,000.00 Y
10218010078 96,000.00 80.0 3/1/99 12.250 120,000.00 Y
10218010143 65,000.00 44.8 9/1/97 9.750 145,000.00 Y
10218010185 189,750.00 75.0 2/1/99 8.625 253,000.00 Y
10218010205 106,250.00 85.0 3/1/99 11.500 125,000.00 Y
10218010255 105,750.00 75.0 9/1/97 8.875 141,000.00 Y
10218010394 136,000.00 80.0 2/1/99 12.250 170,000.00 Y
10218010428 57,600.00 80.0 3/1/99 12.000 72,000.00 Y
10218010544 88,400.00 85.0 9/1/97 9.375 104,000.00 Y
10218010592 144,356.24 85.0 5/1/97 11.375 170,000.00 Y
10218010600 146,137.03 85.0 2/1/99 10.125 172,000.00 Y
10218010610 72,250.00 84.6 3/1/99 10.625 85,400.00 Y
10218010716 76,500.00 85.0 2/1/99 10.625 90,000.00 Y
10218010774 82,000.00 84.9 3/1/99 11.000 96,500.00 Y
10218010875 112,500.00 90.0 8/1/97 10.125 125,000.00 Y
10218010912 73,600.00 80.0 9/1/97 11.500 92,000.00 Y
10218011019 133,900.00 89.9 8/1/97 9.375 148,815.00 Y
10218011336 55,000.00 70.5 3/1/99 9.000 78,000.00 Y
10218011351 126,000.00 90.0 3/1/99 10.375 140,000.00 Y
10218011516 300,000.00 75.0 9/1/97 9.875 400,000.00 Y
10218011914 252,280.00 85.0 3/1/99 10.875 296,800.00 Y
10218011999 146,700.00 90.0 3/1/99 10.500 163,000.00 Y
10218012086 46,500.00 62.0 3/1/99 10.000 75,000.00 Y
10218012488 344,250.00 85.0 2/1/99 11.750 405,000.00 Y
10218012667 160,000.00 80.0 3/1/99 8.750 200,000.00 Y
------------- ---- ------ --------------
7,037,616.37 83.4 10.085 8,515,815.00
75,455,302.55 79.5 10.255 97,648,913.00
98,952,659.50 79.8 10.275 127,065,618.00
</TABLE>
<PAGE>
EXHIBIT I
REQUEST FOR RELEASE OF DOCUMENTS
_____________, 19__
To: [Trustee]
[Custodian]
Re: Pooling and Servicing Agreement, dated as of March 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 relating to AFC Mortgage Loan Asset Backed
Certificates, Series 1997-1
In connection with the administration of the pool of Mortgage Loans held by
you as Trustee or by the Custodian as your agent for the benefit of
Certificateholders, we request the release, and acknowledge receipt, of the
(Trustee's Mortgage File/[specify document]) for the Mortgage Loan described
below, for the reason indicated.
Mortgagor's Name, Address & Zip Code:
Mortgage Loan Number:
Reason for Requesting Documents (check one)
____ 1. Mortgage Loan Paid in Full
(Servicer hereby certifies that all amounts received in
connection therewith have been credited to the Principal and
Interest Account with respect to each Sub-Pool and remitted to
the Trustee for deposit into the Certificate Account pursuant
to the Pooling and Servicing Agreement.)
____ 2. Mortgage Loan Liquidated
(Servicer hereby certifies that all proceeds of foreclosure,
insurance or other liquidation have been finally received and
credited to the Principal and Interest Account and remitted to
the Trustee for deposit into the Certificate Account pursuant
to the Pooling and Servicing Agreement.)
____ 3. Mortgage Loan in Foreclosure
<PAGE>
____ 4. Mortgage Loan repurchased pursuant to Section 11.01 of the Pooling
and Servicing Agreement.
____ 5. Mortgage Loan repurchased or substituted pursuant to Article II
or III of the Pooling and Servicing Agreement (Servicer hereby
certifies that the repurchase price or Substitution Adjustment has
been credited to the related Principal and Interest Account and
remitted to the Trustee for deposit into the Certificate Account
pursuant to the Pooling and Servicing Agreement.)
____ 6. Other (explain) _________________________________
_________________________________________________
If box l or 2 above is checked, and if all or part of the Trustee's
Mortgage File was previously released to us, please release to us our previous
receipt on file with you, as well as any additional documents in your possession
relating to the above specified Mortgage Loan.
If box 3, 4, 5 or 6 above is checked, upon our return of all of the above
documents to you as Trustee, please acknowledge your receipt by signing in the
space indicated below, and returning this form.
Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.
_______________________________
By: ___________________________
Name: _________________________
Title:_________________________
Documents returned to Trustee or Custodian:
__________________________
[Trustee][Custodian]
By: ______________________
Date:_____________________
-2-
<PAGE>
EXHIBIT J
TRANSFER AFFIDAVIT
STATE OF )
) ss.:
COUNTY OF )
The undersigned, being first duly sworn, deposes and says as follows:
1. The undersigned is an officer of ________, the proposed transferee (the
"Transferee") of a Percentage Interest in a Class R Certificate (the
"Certificate") issued pursuant to the Pooling and Servicing Agreement, dated as
of March 1, 1997 (the "Agreement"), among Superior Bank FSB, as depositor (the
"Depositor"), Lee Servicing Company, a division of Superior Bank FSB, as
servicer (the "Servicer"), and LaSalle National Bank, as trustee (the
"Trustee"). Capitalized terms used, but not defined herein shall have the
meanings ascribed to such terms in the Agreement. The Transferee has authorized
the undersigned to make this affidavit on behalf of the Transferee.
2. The Transferee is, as of the date hereof, and will be, as of the date of
the transfer, a Permitted Transferee. The Transferee is acquiring its Percentage
Interest in the Certificate either (i) for its own account or (ii) as nominee,
trustee or agent for another Person and has attached hereto an affidavit from
such Person in substantially the same form as this affidavit. The Transferee has
no knowledge that any such affidavit is false.
3. The Transferee has been advised of, and understands that (i) a tax will
be imposed on transfers of the Certificate to Persons that are not Permitted
Transferees; (ii) such tax will be imposed on the transferror, or, if such
transfer is through an agent (which includes a broker, nominee or middleman) for
a Person that is not a Permitted Transferee, on the agent; and (iii) the Person
otherwise liable for the tax shall be relieved of liability for the tax if the
subsequent Transferee furnished to such Person an affidavit that such subsequent
Transferee is a Permitted Transferee and, at the time of transfer, such Person
does not have actual knowledge that the affidavit is false.
4. The Transferee has been advised of, and understands that, a tax will be
imposed on a "pass-through entity" holding the Certificate if at any time during
the taxable year of the pass through entity a Person that is not a Permitted
Transferee is the record holder of an interest in such entity. The Transferee
understands that such tax will not be imposed for any period with respect to
which the record holder furnishes to the pass-through entity an affidavit that
such record holder is a Permitted Transferee and the pass-through entity does
not have actual knowledge that such affidavit is false. (For this purpose, a
"pass-through entity" includes a regulated investment company, a real estate
investment trust or common trust fund, a partnership trust or estate, and
certain cooperatives and, except as may be provided in Treasury Regulations,
persons holding interests in pass-through entities as a nominee for another
Person.)
<PAGE>
5. The Transferee has reviewed the provisions of Section 4.02 of the
Agreement (incorporated herein by reference) and understands the legal
consequences of the acquisition of a Percentage Interest in the Certificate
including, without limitation, the restrictions on subsequent transfers and the
provisions regarding voiding the transfer and mandatory sales. The Transferee
expressly agrees to be bound by and to abide by the provisions of Section 4.02
of the Agreement and the restrictions noted on the face of the Certificate. The
Transferee understands and agrees that any breach of any of the representations
included herein shall render the transfer to the Transferee contemplated hereby
null and void.
6. The Transferee agrees to require a Transfer Affidavit from any Person to
whom the Transferee attempts to transfer its Percentage Interest in the
Certificate, and in connection with any transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
transfer its Percentage Interest or cause any Percentage Interest to be
transferred to any Person that the Transferee knows is not a Permitted
Transferee or if any purpose of such proposed transfer is to impede the
assessment or collection of tax. In connection with any such transfer by the
Transferee, the Transferee agrees to deliver to the Trustee a certificate (a
"Transfer Certificate") to the effect that such Transferee has no actual
knowledge that the Person to which the transfer is to be made is not a Permitted
Transferee.
7. The Transferee's taxpayer identification number is ______________.
8. No purpose of the Transferee relating to its purchase of a Percentage
Interest in the Certificate by the Transferee is or will be to impede the
assessment or collection of any tax.
9. The Transferee has no present knowledge or expectation that it will be
unable to pay any United States taxes owed by it so long as the Certificate
remains outstanding.
10. The Transferee has no present knowledge or expectation that it will
become insolvent or subject to a bankruptcy proceeding for so long as any of the
Certificates remain outstanding. In this regard, the Transferee hereby
represents to and for the benefit of the person from whom it acquired the Class
R Certificates that the Transferee intends to pay taxes associated with holding
such Class R Certificates as they become due, fully understanding that it may
incur tax liabilities in excess of any cash flows generated by the Class R
Certificates.
11. No purpose of the Transferee relating to any sale of any Percentage
Interest in the Certificate by the Transferee will be to impede the assessment
or collection of tax.
12. The Transferee is not a Non-United States Person.
-2-
<PAGE>
IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this __ day of ________ , 19__
[NAME OF TRANSFEREE]
By:______________________________
Name:____________________________
Title:___________________________
[Corporate Seal]
ATTEST:
_______________________
[Officer of Transferee]
-3-
<PAGE>
STATE OF )
) ss.:
COUNTY OF )
Personally appeared before me the above-named _______________, known or
proved to me to be the same person who executed the foregoing instrument and to
be the __________ of the Transferee, and acknowledged that he executed the same
as his free act and deed and the free act and deed of the Transferee.
Subscribed and sworn before me this ____ day of _____________, 19__.
-----------------------------------
NOTARY PUBLIC
My Commission expires the __ day of ________, 19__
<PAGE>
EXHIBIT J-1
FORM OF TRANSFER CERTIFICATE
__________, 19__
[Trustee]
Attention: Corporate Trust
Re: AFC Mortgage Loan Asset Backed Certificates,
Series 1997-1
Dear Sirs:
This letter is delivered to you in connection with the transfer by
_____________________ (the "Transferor") to _______________ (the "Transferee")
of ____% Percentage Interest in the AFC Mortgage Loan Asset Backed Certificates,
Series 1997-1, Class R (the "Certificate"), pursuant to Section 4.02 of the
Pooling and Servicing Agreement (the "Pooling and Servicing Agreement"), dated
as of March 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. All terms used herein and not otherwise defined shall have the
meanings set forth in the Pooling and Servicing Agreement. The Transferor hereby
certifies, represents and warrants to, and covenants with, the Trustee that:
1. No purpose of the Transferor relating to the transfer of the Certificate
by the Transferor to the Transferee is or will be to impede the assessment or
collection of any tax.
2. The Transferor understands that the Transferee has delivered to the
Trustee a Transfer Affidavit in the form attached to the Pooling and Servicing
Agreement as Exhibit J. The Transferor does not know or believe that any
representation contained therein is false.
3. The Transferor has at the time of the transfer conducted a reasonable
investigation of the financial condition of the Transferee as contemplated by
Treasury Regulations Section 1.860E-1(c)(4)(i) and, as a result of that
investigation, the Transferor has determined that the Transferee has
historically paid its debts as they become due and has found no significant
evidence to indicate that the Transferee will not continue to pay its debts as
they become due in the future. The Transferor understands that the transfer of
the Certificates may not be respected for United States income tax purposes (and
the Transferor may continue to be liable for United States income taxes
associated therewith) unless the Transferor has conducted such an investigation.
<PAGE>
4. The Transferor has no actual knowledge that the proposed Transferee is
not a Permitted Transferee or a Non-United States Person.
Very truly yours,
------------------------------
(Transferor)
By:___________________________
Name:_________________________
Title:________________________
-2-
<PAGE>
EXHIBIT K
SPECIAL POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that I, __________________________, of
____________________ (the "Depositor"), do hereby constitute and appoint LaSalle
National Bank, as the true and lawful attorney, for the Depositor and in its
name, place and stead, to record the assignments of mortgage with respect to the
Mortgage Loans transferred to LaSalle National Bank, as trustee (the "Trustee"),
under that Pooling and Servicing Agreement dated as of March 1, 1997 by and
among the Depositor, the Trustee and Lee Servicing Company, a division of
Superior Bank FSB, as servicer, and to do and perform all other things and acts
relating to such assignments of mortgage as may be necessary to effectuate the
transfer of such Mortgage Loans to the Trustee, including the execution and
delivery of new assignments of mortgage where necessary to comply with
applicable real estate recording laws at the time of recordation.
This power of attorney is irrevocable and is coupled with an interest in
the Mortgage Loans, and it may at all times be relied upon by any person, firm
or corporation dealing with the attorney named herein as remaining in full force
and effect, and such person, firm or corporation shall have no liability to the
Depositor with respect thereto.
WITNESS the following signature this ___ day of __________, 199_.
___________________________________
By:
Name:
Title:
STATE OF ________________
COUNTY OF ______________, to wit:
I, ___________________, a Notary Public in and for the jurisdiction
aforesaid, do hereby certify that ______________________, who acknowledged
himself to be the _______________ of _____________________, a ______________
corporation, personally appeared before me in the jurisdiction aforesaid and
that he as such __________________ executed the foregoing instrument on behalf
of said corporation for the purposes therein contained.
Witness my hand and official seal to this ____ day of ___________, 199_.
_______________________ (SEAL)
Notary Public
My Commission Expires:
<PAGE>
EXHIBIT L
CUSTODIAL AGREEMENT
Dated __________, 199_
______________________________, a ____________________, as Trustee (the
"Trustee") and ___________________________, a ___________________________
("_________________"), agree as follows:
WHEREAS, concurrently herewith, the Trustee, Superior Bank FSB (the
"Depositor") and Lee Servicing Company, a division of Superior Bank FSB, (the
"Servicer) are entering into a Pooling and Servicing Agreement, dated as of
March 1, 1997, relating to AFC Mortgage Loan Asset Backed Certificates, Series
1997-1 (the "Pooling Agreement", the terms defined therein being used herein
with the same meaning) pursuant to which the Depositor shall transfer, assign,
set-over and otherwise convey to the Trustee, without recourse, all of the
Depositor's right, title and interest in and to the mortgage loans consisting of
Sub-Pool 1 and Sub-Pool 2 identified in Exhibits H-1 and H-2 to the Pooling
Agreement (the "Mortgage Loans"), other than as to the Depositor's Yield; and
WHEREAS, in connection with such transfer and assignment and pursuant to
the Pooling Agreement, the Trustee shall hold, directly or pursuant to a
custodial agreement, the Trustee's Mortgage Files;
WITNESSETH THAT, in consideration of the premises and of the mutual
agreements herein contained, _________________ and the Trustee agree as follows:
1. Appointment as Custodian; Acknowledgment of Receipt. Subject to the
terms and conditions herein, the Trustee hereby appoints ________________, and
______________ hereby accepts such appointment, as its Custodian to maintain
custody of the Trustee's Mortgage Files. __________________ hereby acknowledges
receipt of the Mortgage Notes, the Mortgages, the assignments and other
documents relating to the Mortgage Loans referred to in Section 2.04, except for
the items referred to in Section 2.04(f), of the Pooling Agreement. The Trustee
shall be liable for all of _______________________ fees under this Agreement.
2. Maintenance of Office. __________________ agrees to maintain each
Trustee's Mortgage File identified in Section 2.04 of the Pooling Agreement,
which is incorporated herein by reference, at the office of ___________________
located at _______________________________________________ or at such other
office of _________________ in ____________________ as ________________ shall
designate from time to time after giving the Trustee 30 days' prior written
notice.
-1-
<PAGE>
3. Duties of Custodian. As Custodian, _____________ shall have and perform
the following powers and duties:
(a) Safekeeping. To segregate the Trustee's Mortgage Files from all
other mortgages and mortgage notes and similar records in its possession,
to identify the Trustee's Mortgage Files as being held and to hold the
Trustee's Mortgage Files for and on behalf of the Trustee for the benefit
of all present and future Certificateholders, to maintain accurate records
pertaining to each Mortgage Note and Mortgage in the Trustee's Mortgage
Files as will enable the Trustee to comply with the terms and conditions of
the Pooling Agreement, to maintain at all times a current inventory thereof
and to conduct periodic physical inspections of the Trustee's Mortgage
Files held by it under this Agreement in such a manner as shall enable the
Trustee and _________________ to verify the accuracy of such
record-keeping, inventory and physical possession. _________________ will
promptly report to the Trustee any failure on its part to hold the
Trustee's Mortgage Files as herein provided and promptly take appropriate
action to remedy any such failure.
(b) Release of Documents. To release any Mortgage Note and Mortgage in
the Trustee's Mortgage Files as provided in the Pooling Agreement.
(c) Administration; Reports. In general, to attend to all
non-discretionary details in connection with maintaining custody of the
Trustee's Mortgage Files on behalf of the Trustee. In addition,
________________ shall assist the Trustee generally in the preparation of
reports to Certificateholders or to regulatory bodies to the extent
necessitated by ________________ custody of the Trustee's Mortgage Files.
4. Access to Records. __________________ shall permit the Trustee or its
duly authorized depositors, attorneys or auditors and those persons permitted
access pursuant to Section 5.13 of the Pooling Agreement to inspect the
Trustee's Mortgage Files and the books and records maintained by
__________________ pursuant hereto at such times as they may reasonably request,
subject only to compliance with the terms of the Pooling Agreement.
5. Instructions; Authority to Act. ______________ shall be deemed to have
received proper instructions with respect to the Trustee's Mortgage Files upon
its receipt of written instructions signed by a Responsible Officer of the
Trustee. A certified copy of a resolution of the Board of Directors of the
Trustee may be accepted by _______________ as conclusive evidence of the
authority of any such officer to act and may be considered as in full force and
effect until receipt of written notice to the contrary by ______________ from
the Trustee. Such instructions may be general or specific in terms.
6. Indemnification by _________________. agrees to indemnify the Trustee
for any and all liabilities, obligations, losses, damages, payments, costs or
expenses,
-2-
<PAGE>
including attorneys fees, of any kind whatsoever which may be imposed on,
incurred by or asserted against the Trustee as the result of any act or omission
in any way relating to the maintenance and custody by ___________________ of the
Trustee's Mortgage Files; provided, however, that ___________________ shall not
be liable for any portion of any such amount resulting from the gross negligence
or wilful misconduct of the Trustee.
7. Advice of Counsel. __________________ and the Trustee further agree that
____________________ shall be entitled to rely and act upon the advice of
counsel with respect to its performance hereunder as Custodian and shall be
without liability for any action reasonably taken pursuant to such advice,
provided that such action is not in violation of applicable Federal or State
law. This paragraph shall not negate _______________ obligations under paragraph
6 above.
8. Effective Period, Termination and Amendment, and Interpretive and
Additional Provisions. This Agreement shall become effective as of the date
hereof and shall continue in full force and effect until terminated as
hereinafter provided, and may be amended at any time by mutual agreement of the
parties hereto. This Agreement may be terminated by either party in a writing
delivered or mailed, postage prepaid, to the other party, such termination to
take effect no sooner than sixty (60) days after the date of such delivery or
mailing. Concurrently with, or as soon as practicable after, the termination of
this Agreement, _________________ shall redeliver the Trustee's Mortgage Files
to the Trustee at such place as the Trustee may reasonably designate. In
connection with the administration of this Agreement, ________________ and the
Trustee may agree from time to time upon the interpretation of the provisions of
this Agreement as may in their opinion by consistent with the general tenor and
purposes of this Agreement, any such interpretation to be signed and annexed
hereto.
9. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.
10. Notices. Notices and other writings shall be delivered or mailed,
postage prepaid, to the Trustee at, or to
____________________________________________________ at,
____________________________________, Attention: ______________________; or to
such other address as the Trustee or ________________ may hereafter specify in
writing. Notices or other writings shall be effective only upon actual receipt
by the parties.
11. Binding Effect. This Agreement shall be binding upon and shall inure to
the benefit of the Trustee and ____________________ and their respective
successors and assigns. Concurrently with the appointment of a successor trustee
as provided in Section 12.08 of the Pooling Agreement, the Trustee and
___________________ shall amend this Agreement to make said successor trustee
the successor to the Trustee hereunder.
12. Counterparts. This Agreement may be executed in one or more
counterparts and by the different parties hereto on separate counterparts, each
of which, when
-3-
<PAGE>
so executed, shall be deemed to be an original; such counterparts, together,
shall constitute one and the same agreement.
-4-
<PAGE>
IN WITNESS WHEREOF, each of the parties hereto has caused this
Agreement to be executed in its name and on its behalf by a duly authorized
officer as of the day and year first above written.
LASALLE NATIONAL BANK,
as Trustee under the Pooling
Agreement referred to above
By:__________________________________
_____________________________________,
as Custodian
By:
<PAGE>
EXHIBIT M
FORM OF LIQUIDATION REPORT
Customer Name:
Account Number:
Original Principal Balance:
1. Liquidation Proceeds
Principal Prepayment $__________
Property Sale Proceeds __________
Insurance Proceeds$ __________
Other (Itemize) __________
Total Proceeds $__________
2. Servicing Advances $__________
Monthly Advances __________
Servicing Fees __________
Annual Trustee Expense Amount __________
Total Advances $__________
3. Net Liquidation Proceeds $__________
(Line 1 minus Line 2)
4. Principal Balance of the Mortgage
Loan on date of liquidation $__________
5. Realized Loss, if any $__________
(Line 4 minus Line 3)
<PAGE>
<TABLE>
EXHIBIT N
FORM OF DELINQUENCY REPORT
DELINQUENCY AND FORECLOSURE INFORMATION
<CAPTION>
REO FORECLOSURES
------------------------------------------
OUTSTANDING # # OF # OF OUTSTANDING # OF OUTSTANDING
INVESTOR DOLLARS ACCT RANGES AMOUNT ACCTS. PCT ACCTS. DOLLARS % ACCTS DOLLARS %
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
REMIC 30 TO 59 DAYS
199_-__ 60 TO 89 DAYS
90 AND OVER
TOTALS
</TABLE>
<PAGE>
EXHIBIT O
CERTIFICATE INSURANCE POLICY
<PAGE>
FINANCIAL GUARANTY INSURANCE COMPANY
115 BROADWAY
NEW YORK, NEW YORK 10006
(212) 312-3000
(800) 352-0001
Surety Bond
Form 9109
Page 1 of 4
ISSUER: AFC Mortgage Loan Trust 1997-1 POLICY NUMBER: 97010138
INSURED OBLIGATIONS: CONTROL NUMBER: 0010001
$220,000,000 in principal amount of AFC
Mortgage Loan Asset Backed Certificates,
Series 1997-1, Class A Certificates (the "Certificates")
TRUSTEE: LaSalle National Bank
Financial Guaranty Insurance Company ("Financial Guaranty"), a New York stock
insurance company, in consideration of its receipt of the Deposit Premium and
subject to the terms of this Surety Bond, hereby unconditionally and irrevocably
agrees to pay each Insured Payment to the Trustee named above or its successor,
as trustee for the Holders of the Certificates, to the extent set forth in the
Pooling and Servicing Agreement.
Financial Guaranty will make an Insured Payment (other than that portion of an
Insured Payment constituting a Preference Amount) out of its own funds by 2:00
p.m. (New York City Time) in immediately available funds to the Trustee on the
later of (i) the Business Day next following the day on which Financial Guaranty
shall have received Notice that an Insured Payment is due and (ii) the
Remittance Date on which the Insured Payment is distributable to
Certificateholders pursuant to the Pooling and Servicing Agreement, for
disbursement to such Certificateholders in the same manner as other payments
with respect to the Certificates are required to be made. Any Notice received by
Financial Guaranty after 2:00 p.m. New York City time on a given Business Day or
on any day that is not a Business Day shall be deemed to have been received by
Financial Guaranty on the next succeeding Business Day.
Upon such payment, Financial Guaranty shall be fully subrogated to the rights of
the Certificateholders to receive the amount so paid. Financial Guaranty's
obligations hereunder with respect to each Remittance Date shall be discharged
to the extent funds consisting of the Insured Payment are received by the
Trustee on behalf of the Certificateholders for distribution to such
Certificateholders, as provided in the Pooling and Servicing Agreement and
herein, whether or not such funds are properly applied by the Trustee.
If the payment of any portion or all of any amount that is insured hereunder is
voided pursuant to a final order of a court exercising proper jurisdiction in an
insolvency proceeding to the effect that the Trustee or the Certificateholder,
as the case may be, is
Form 9109
Page 1 of 4
<PAGE>
FINANCIAL GUARANTY INSURANCE COMPANY
115 BROADWAY
NEW YORK, NEW YORK 10006
(212) 312-3000
(800) 352-0001
SURETY BOND
required to return any such payment or portion thereof prior to the expiration
date of this Surety Bond because such payment was voided under the U. S.
Bankruptcy Code, with respect to which order the appeal period has expired
without an appeal having been filed (a "Final Order"), and, as a result, the
Trustee or any Certificateholder is required to return such voided payment, or
any portion of such voided payment made in respect of the Certificates (a
"Preference Amount"), Financial Guaranty will pay on the guarantee described in
the first paragraph hereof, an amount equal to each such Preference Amount, on
the second Business Day following receipt by Financial Guaranty of (x) a
certified copy of the Final Order, (y) an assignment, in form reasonably
satisfactory to Financial Guaranty, irrevocably assigning to Financial Guaranty
all rights and claims of the Trustee and/or such Certificateholder relating to
or arising under such Preference Amount and appointing Financial Guaranty as the
agent of the Trustee and/or such Certificateholder in respect of such Preference
Amount, and (z) a Notice appropriately completed and executed by the Trustee or
such Certificateholder, as the case may be. Such payment shall be made to the
receiver, conservator, debtor-in-possession or trustee in bankruptcy named in
the Final Order and not to the Trustee or Certificateholder directly (unless a
Certificateholder has previously paid such amount to such receiver, conservator,
debtor-in-possession or trustee named in such Final Order in which case payment
shall be made to the Trustee for distribution to the Certificateholder upon
proof of such payment reasonably satisfactory to Financial Guaranty).
Notwithstanding the foregoing, in no event shall Financial Guaranty be (i)
required to make any payment under this Surety Bond in respect of any Preference
Amount to the extent such Preference Amount is comprised of amounts previously
paid by Financial Guaranty hereunder, or (ii) obligated to make any payment in
respect of any Preference Amount, which payment represents a payment of the
principal amount of the Certificates, prior to the time Financial Guaranty
otherwise would have been required to make a payment in respect of such
principal.
Financial Guaranty shall make payments due in respect of Preference Amounts
prior to 2:00 p.m. New York City time on the second Business Day following
Financial Guaranty's receipt of the documents required under clauses (x) through
(z) of the preceding paragraph. Any such documents received by Financial
Guaranty after 2:00 p.m. New York City time on a given Business Day or on any
day that is not a Business Day shall be deemed to have been received by
Financial Guaranty on the next succeeding Business Day. All payments made by
Financial Guaranty hereunder in respect of Preference Amounts will be made with
Financial Guaranty's own funds.
This Surety Bond is non-cancelable for any reason, including nonpayment of any
premium. The premium on this Surety Bond is not refundable for any reason,
including
Form 9109
Page 2 of 4
<PAGE>
FINANCIAL GUARANTY INSURANCE COMPANY
115 BROADWAY
NEW YORK, NEW YORK 10006
(212) 312-3000
(800) 352-0001
SURETY BOND
the payment of the Certificates prior to their respective maturities. This
Surety Bond shall expire and terminate without any action on the part of
Financial Guaranty or any other Person on the date that is one year and one day
following the date on which the Certificates shall have been paid in full.
The Deposit Premium shall be due and payable on the date hereof, and a monthly
premium shall be due and payable as provided in the Pooling and Servicing
Agreement.
This Surety Bond is subject to and shall be governed by the laws of the State of
New York. The proper venue for any action or proceeding on this Surety Bond
shall be the County of New York, State of New York. The insurance provided by
this Surety Bond is not covered by the New York Property/Casualty Insurance
Security Fund (New York Insurance Code, Article 76).
Capitalized terms used and not defined herein shall have the respective meanings
set forth in the Pooling and Servicing Agreement. "Notice" means a written
notice in the form of Exhibit A to this Surety Bond by registered or certified
mail or telephonic or telegraphic notice, subsequently confirmed by written
notice delivered via telecopy, telex or hand delivery from the Trustee to
Financial Guaranty specifying the information set forth therein.
"Certificateholder" means, as to a particular Certificate, the person, other
than the Trust, the Servicer, any Subservicer or the Depositor who, on the
applicable Remittance Date is entitled under the terms of such Certificate to
payment thereof. "Pooling and Servicing Agreement" means the Pooling and
Servicing Agreement by and among Superior Bank FSB, as Depositor, Lee Servicing
Company, a division of Superior Bank FSB, as Servicer, and LaSalle National
Bank, as Trustee, dated as of March 1, 1997.
In the event that payment under any Certificate is accelerated, nothing herein
contained shall obligate Financial Guaranty to make any payment of principal or
interest on such Certificates on an accelerated basis, unless such acceleration
of payment by Financial Guaranty is at the sole option of Financial Guaranty; it
being understood that a payment shortfall in respect of the Certificates by
reason of the purchase by the Servicer pursuant to Section 11.01 of the Pooling
and Servicing Agreement does not constitute acceleration for the purposes
hereof.
Form 9109
Page 3 of 4
<PAGE>
FINANCIAL GUARANTY INSURANCE COMPANY
115 BROADWAY
NEW YORK, NEW YORK 10006
(212) 312-3000
(800) 352-0001
SURETY BOND
IN WITNESS WHEREOF, Financial Guaranty has caused this Surety Bond to be affixed
with its corporate seal and to be signed by its duly authorized officer in
facsimile to become effective and binding upon Financial Guaranty by virtue of
the countersignature of its duly authorized representative.
/s/ /s/
President Authorized Representative
Effective Date: March 20, 1997
Form 9109
Page 4 of 4
<PAGE>
EXHIBIT A
NOTICE
To: Financial Guaranty Insurance Company
115 Broadway
New York, New York 10006
(212) 312-3000
Attention: Group Leader - Research and Risk Management
Telephone: (212) 312-3000
Telecopier: (212) 312-3093
Re: AFC Mortgage Loan Trust 1997-1,
AFC Mortgage Loan Asset Backed
Certificates, Series 1997-1
Determination Date: _________________________
Remittance Date: ___________________________
We refer to that certain Pooling and Servicing Agreement dated as of March 1,
1997, by and among Superior Bank FSB, as Depositor, Lee Servicing Company, a
division of Superior Bank FSB, as Servicer, and LaSalle National Bank, as
Trustee (the "Pooling and Servicing Agreement"), relating to the above
referenced Certificates. All capitalized terms not otherwise defined herein or
in the Surety Bond shall have the same respective meanings assigned to such
terms in the Pooling and Servicing Agreement.
(a) As of the Determination Date and based upon the Servicer's Certificate for
such Determination Date, the Trustee has determined under the Pooling and
Servicing Agreement that in respect of the Remittance Date set forth above:
(i) The Class A Interest Remittance Amount due and owing is $____________;
(ii) The Class A Principal Remittance Amount, exclusive of the amount
set forth in clause c(vi) of the definition thereof if not paid by the
Depositor, due and owing is $______________;
(iii) The Available Remittance Amount (minus the amount withdrawable
from the Certificate Account to pay the Certificate Insurer pursuant to Section
6.02(i) of the Agreement and as reduced by any portion thereof that has been
deposited in the Certificate Account but may not be withdrawn therefrom pursuant
to an order of a United States bankruptcy court of competent jurisdiction
imposing a stay pursuant to Section 362 of the United States Bankruptcy Code) is
$_______________;
(iv) The lesser of (1) the Excess Spread to be deposited into the
Certificate Account pursuant to Section 5.04(i) of the Agreement, and (2) the
Subordinated Amount, is $_______________;
<PAGE>
(v) The aggregate amount of unreimbursed Insured Payments (including
any portion constituting Preference Amounts), together with the aggregate
portion of the items described in clauses (i) and (ii) above that represents
interest accrued in respect of Insured Payments in accordance with the
definition of Class A Carry-Forward Amount in the Agreement, is
$_______________;
(vi) The additional portion of the Amount Available constituting Excess
Spread available to pay the Class A Interest Remittance Amount pursuant to
Section 6.06(c)(A)(Y)(i), is $_______________.
(vii) The aggregate amount to be withdrawn from the Reserve Account and
deposited into the Certificate Account pursuant to Section 6.14(c) of the
Agreement is $_______________.
Please be advised that the amounts described in clauses (i) and (ii) above
collectively exceed the amounts described in clauses [,prior to the Cross-Over
Date, (iii), (iv) (v)] or [on or after the Cross-Over Date, (iii), (v), (vi)],
and (vii) above by $---------------.
Accordingly, pursuant to the Pooling and Servicing Agreement, this statement
constitutes a notice for payment of an Insured Payment in the amount of
$_______________ under the Surety Bond.
[Attached hereto is a copy of the Final Order in connection with a Preference
Amount in the amount set forth therein, together with an assignment of rights
and appointment of agent.]
(b) No payment claimed hereunder is in excess of the amount payable under the
[Surety Bond].
The amount requested in this Notice should be paid to:
[Payment Instructions]
Any person who knowingly and with intent to defraud any insurance company or
other person files an application for insurance or statement of claim containing
any materially false information or conceals for the purpose of misleading,
information concerning any fact material thereto, commits a fraudulent insurance
act, which is a crime, and shall also be subject to a civil penalty not to
exceed Five Thousand Dollars ($5,000.00) and the stated value of the claim for
each such violation.
<PAGE>
IN WITNESS WHEREOF, the Trustee has executed and delivered this Notice
this _____ day of ______________________.
-----------------------------------,
as Trustee
By: _____________________________
Title: _____________________________
<PAGE>
EXHIBIT P
PRINCIPAL PAYMENT TABLE
<PAGE>
Principal
Prepayment Table
Class A
Principal
Balance
---------
220000000
1 Mar-97 220000000
2 Apr-97 220000000
3 May-97 220000000
4 Jun-97 220000000
5 Jul-97 220000000
6 Aug-97 220000000
7 Sep-97 220000000
8 Oct-97 220000000
9 Nov-97 220000000
10 Dec-97 220000000
11 Jan-98 220000000
12 Feb-98 220000000
13 Mar-98 220000000
14 Apr-98 220000000
15 May-98 220000000
16 Jun-98 220000000
17 Jul-98 220000000
18 Aug-98 220000000
19 Sep-98 220000000
20 Oct-98 220000000
21 Nov-98 220000000
22 Dec-98 220000000
23 Jan-99 220000000
24 Feb-99 220000000
25 Mar-99 220000000
26 Apr-99 220000000
27 May-99 220000000
28 Jun-99 220000000
29 Jul-99 220000000
30 Aug-99 220000000
31 Sep-99 220000000
32 Oct-99 220000000
33 Nov-99 220000000
34 Dec-99 220000000
35 Jan-2000 220000000
36 Feb-2000 220000000
37 Mar-2000 220000000
38 Apr-2000 220000000
39 May-2000 220000000
40 Jun-2000 220000000
41 Jul-2000 220000000
42 Aug-2000 220000000
43 Sep-2000 220000000
44 Oct-2000 220000000
45 Nov-2000 220000000
46 Dec-2000 220000000
47 Jan-2001 220000000
48 Feb-2001 220000000
49 Mar-2001 220000000
50 Apr-2001 220000000
51 May-2001 220000000
52 Jun-2001 220000000
53 Jul-2001 220000000
54 Aug-2001 220000000
55 Sep-2001 220000000
56 Oct-2001 220000000
57 Nov-2001 220000000
58 Dec-2001 220000000
59 Jan-2002 220000000
60 Feb-2002 220000000
61 Mar-2002 213379762.6
62 Apr-2002 213238639.1
63 May-2002 213096258.7
64 Jun-2002 212952610.5
65 Jul-2002 212807682.9
66 Aug-2002 212661464.6
67 Sep-2002 212513944.1
68 Oct-2002 212365109.8
69 Nov-2002 212214950
70 Dec-2002 212063452.8
71 Jan-2003 211910606.3
72 Feb-2003 211756398.4
73 Mar-2003 211600817.1
74 Apr-2003 211443850
75 May-2003 211285484.9
76 Jun-2003 211125709.1
77 Jul-2003 210964510.3
78 Aug-2003 210801875.5
79 Sep-2003 210637792.2
80 Oct-2003 210472247.2
81 Nov-2003 210305227.6
82 Dec-2003 210136720.3
83 Jan-2004 209966711.8
84 Feb-2004 209795189
85 Mar-2004 209622138.1
86 Apr-2004 209447545.7
87 May-2004 209271398
88 Jun-2004 209093681
89 Jul-2004 208914380.8
90 Aug-2004 208733483.2
91 Sep-2004 208550974
92 Oct-2004 208366838.8
93 Nov-2004 208181063.2
94 Dec-2004 207993632.4
95 Jan-2005 207804531.7
96 Feb-2005 207613746.1
97 Mar-2005 207421260.8
98 Apr-2005 207227060.4
99 May-2005 207031129.6
100 Jun-2005 206833453.2
101 Jul-2005 206634015.4
102 Aug-2005 206432800.5
103 Sep-2005 206229792.7
104 Oct-2005 206024975.9
105 Nov-2005 205818334.1
106 Dec-2005 205609850.9
107 Jan-2006 205399510
108 Feb-2006 205187294.6
109 Mar-2006 204973188.2
110 Apr-2006 204757173.7
111 May-2006 204539234.2
112 Jun-2006 204319352.6
113 Jul-2006 204097511.4
114 Aug-2006 203873693.1
115 Sep-2006 203647880.2
116 Oct-2006 203420054.8
117 Nov-2006 203190198.9
118 Dec-2006 202958294.5
119 Jan-2007 202724323.2
120 Feb-2007 202488266.5
121 Mar-2007 202250106
122 Apr-2007 202009822.7
123 May-2007 201767397.7
124 Jun-2007 201522812
125 Jul-2007 201276046.2
126 Aug-2007 201027080.8
127 Sep-2007 200775896.2
128 Oct-2007 200522472.7
129 Nov-2007 200266790.1
130 Dec-2007 200008828.4
131 Jan-2008 199748567.2
132 Feb-2008 199485985.9
133 Mar-2008 199221063.9
134 Apr-2008 198953780.2
135 May-2008 198684113.8
136 Jun-2008 198412043.3
137 Jul-2008 198137547.3
138 Aug-2008 197860604.2
139 Sep-2008 197581192.1
140 Oct-2008 197299288.9
141 Nov-2008 197014872.4
142 Dec-2008 196727920.1
143 Jan-2009 196438409.4
144 Feb-2009 196146317.5
145 Mar-2009 195851621.3
146 Apr-2009 195554297.6
147 May-2009 195254322.8
148 Jun-2009 194951673.3
149 Jul-2009 194646325.2
150 Aug-2009 194338254.4
151 Sep-2009 194027436.6
152 Oct-2009 193713847.3
153 Nov-2009 193397461.6
154 Dec-2009 193078254.7
155 Jan-2010 192756201.2
156 Feb-2010 192431275.9
157 Mar-2010 192103452.9
158 Apr-2010 191772706.6
159 May-2010 191439010.6
160 Jun-2010 191102338.7
161 Jul-2010 190762664.4
162 Aug-2010 190419960.7
163 Sep-2010 190074200.6
164 Oct-2010 189725356.8
165 Nov-2010 189373401.7
166 Dec-2010 189018307.6
167 Jan-2011 188660046.5
168 Feb-2011 188298589.9
169 Mar-2011 187933909.4
170 Apr-2011 187565976.2
171 May-2011 187194761.2
172 Jun-2011 186820235
173 Jul-2011 186442368.1
174 Aug-2011 186061130.7
175 Sep-2011 185676492.6
176 Oct-2011 185288423.4
177 Nov-2011 184896892.5
178 Dec-2011 184501868.9
179 Jan-2012 184103321.4
180 Feb-2012 183701218.6
181 Mar-2012 160179224.6
182 Apr-2012 159815764.1
183 May-2012 159449109.5
184 Jun-2012 159079232.6
185 Jul-2012 158706105.2
186 Aug-2012 158329698.7
187 Sep-2012 157949984.3
188 Oct-2012 157566932.9
189 Nov-2012 157180515.2
190 Dec-2012 156790701.5
191 Jan-2013 156397462.1
192 Feb-2013 156000766.9
193 Mar-2013 155600585.5
194 Apr-2013 155196887.1
195 May-2013 154789641
196 Jun-2013 154378816
197 Jul-2013 153964380.6
198 Aug-2013 153546303
199 Sep-2013 153124551.3
200 Oct-2013 152699093.2
201 Nov-2013 152269896.1
202 Dec-2013 151836927.1
203 Jan-2014 151400153.1
204 Feb-2014 150959540.7
205 Mar-2014 150515056.1
206 Apr-2014 150066665.3
207 May-2014 149614334
208 Jun-2014 149158027.5
209 Jul-2014 148697710.9
210 Aug-2014 148233348.9
211 Sep-2014 147764906.1
212 Oct-2014 147292346.5
213 Nov-2014 146815634
214 Dec-2014 146334732.1
215 Jan-2015 145849603.9
216 Feb-2015 145360212.3
217 Mar-2015 144866519.9
218 Apr-2015 144368488.8
219 May-2015 143866081
220 Jun-2015 143359257.9
221 Jul-2015 142847980.7
222 Aug-2015 142332210.4
223 Sep-2015 141811907.4
224 Oct-2015 141287031.8
225 Nov-2015 140757543.6
226 Dec-2015 140223402.2
227 Jan-2016 139684566.6
228 Feb-2016 139140995.7
229 Mar-2016 138592647.7
230 Apr-2016 138039480.8
231 May-2016 137481452.6
232 Jun-2016 136918520.3
233 Jul-2016 136350640.9
234 Aug-2016 135777770.8
235 Sep-2016 135199866.3
236 Oct-2016 134616883.1
237 Nov-2016 134028776.5
238 Dec-2016 133435501.5
239 Jan-2017 132837012.7
240 Feb-2017 132233264.3
241 Mar-2017 131624210.1
242 Apr-2017 131009803.4
243 May-2017 130389997.2
244 Jun-2017 129764744
245 Jul-2017 129133996
246 Aug-2017 128497704.9
247 Sep-2017 127855821.9
248 Oct-2017 127208298
249 Nov-2017 126555083.5
250 Dec-2017 125896128.5
251 Jan-2018 125231382.4
252 Feb-2018 124560794.5
253 Mar-2018 123884313.3
254 Apr-2018 123201887.1
255 May-2018 122513463.6
256 Jun-2018 121818990.2
257 Jul-2018 121118413.6
258 Aug-2018 120411680.2
259 Sep-2018 119698735.9
260 Oct-2018 118979526.1
261 Nov-2018 118253995.8
262 Dec-2018 117522089.5
263 Jan-2019 116783751
264 Feb-2019 116038923.8
265 Mar-2019 115287551
266 Apr-2019 114529575
267 May-2019 113764937.8
268 Jun-2019 112993580.9
269 Jul-2019 112215445.1
270 Aug-2019 111430470.9
271 Sep-2019 110638598.3
272 Oct-2019 109839766.5
273 Nov-2019 109033914.5
274 Dec-2019 108220980.5
275 Jan-2020 107400902.3
276 Feb-2020 106573617.2
277 Mar-2020 105739061.7
278 Apr-2020 104897172
279 May-2020 104047883.6
280 Jun-2020 103191131.5
281 Jul-2020 102326850.2
282 Aug-2020 101454973.4
283 Sep-2020 100575434.4
284 Oct-2020 99688165.91
285 Nov-2020 98793099.93
286 Dec-2020 97890167.95
287 Jan-2021 96979300.87
288 Feb-2021 96060428.92
289 Mar-2021 95133481.78
290 Apr-2021 94198388.48
291 May-2021 93255077.42
292 Jun-2021 92303476.38
293 Jul-2021 91343512.51
294 Aug-2021 90375112.32
295 Sep-2021 89398201.67
296 Oct-2021 88412705.77
297 Nov-2021 87418549.16
298 Dec-2021 86415655.74
299 Jan-2022 85403948.73
300 Feb-2022 84383350.67
301 Mar-2022 83353783.42
302 Apr-2022 82315168.16
303 May-2022 81267425.37
304 Jun-2022 80210474.85
305 Jul-2022 79144235.67
306 Aug-2022 78068626.21
307 Sep-2022 76983564.11
308 Oct-2022 75888966.3
309 Nov-2022 74784748.98
310 Dec-2022 73670827.62
311 Jan-2023 72547116.93
312 Feb-2023 71413530.89
313 Mar-2023 70269982.7
314 Apr-2023 69116384.82
315 May-2023 67952648.93
316 Jun-2023 66778685.93
317 Jul-2023 65594405.95
318 Aug-2023 64399718.33
319 Sep-2023 63194531.58
320 Oct-2023 61978753.46
321 Nov-2023 60752290.88
322 Dec-2023 59515049.93
323 Jan-2024 58266935.91
324 Feb-2024 57007853.26
325 Mar-2024 55737705.57
326 Apr-2024 54456395.62
327 May-2024 53163825.3
328 Jun-2024 51859895.66
329 Jul-2024 50544506.86
330 Aug-2024 49217558.21
331 Sep-2024 47878948.12
332 Oct-2024 46528574.09
333 Nov-2024 45166332.76
334 Dec-2024 43792119.82
335 Jan-2025 42405830.07
336 Feb-2025 41007357.37
337 Mar-2025 39596594.66
338 Apr-2025 38173433.93
339 May-2025 36737766.23
340 Jun-2025 35289481.64
341 Jul-2025 33828469.29
342 Aug-2025 32354617.32
343 Sep-2025 30867812.89
344 Oct-2025 29367942.17
345 Nov-2025 27854890.34
346 Dec-2025 26328541.56
347 Jan-2026 24788778.97
348 Feb-2026 23235484.69
349 Mar-2026 21668539.81
350 Apr-2026 20087824.34
351 May-2026 18493217.29
352 Jun-2026 16884596.57
353 Jul-2026 15261839.02
354 Aug-2026 13624820.4
355 Sep-2026 11973415.4
356 Oct-2026 10307497.57
357 Nov-2026 8626939.372
358 Dec-2026 6931612.153
359 Jan-2027 5221386.116
360 Feb-2027 3496130.328
361 Mar-2027 1755712.704
362 Apr-2027 1.971784513E-09
<PAGE>
EXHIBIT Q
FORM OF SERVICER'S MONTHLY REMITTANCE REPORT
TO TRUSTEE
<PAGE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
______ SUB POOL _
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of ______________ and the Insurance Agreement dated as of
______________, Lee Servicing Company reports the following information
pertaining to Series ______ Sub Pool _ for _________, ___, the Remittance date.
Period Ended: _________, 19__
- --------------------------------------------------------------------------------
Total Actual Principal Collections 0.00
Total Actual Interest Collections 0.00
Additional Proceeds 0.00
-------------------
Total Collections
Monthly Advance
Delinquent Interest 0.00
Compensating Interest 0.00
Amounts Held for Future Distributions 0.00
0.00
-------------------
Available Remittance Amount: 0.00
Less: Service Fees 0.00
Expense Account Deposit 0.00
Deposits/Withdrawals for Cross Collaterization 0.00
--------------------
Adjusted Remittance Amount: 0.00
Remaining Amount Available:
Adjusted Remittance Amount 0.00
- --------------------------------------------------------------------------------
<PAGE>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
______ SUB POOL _
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of ______________ and the Insurance Agreement dated as of
______________, Lee Servicing Company reports the following information
pertaining to Series ______ Sub Pool _ for _________, ___, the Remittance date.
Period Ended: _________, 19__
- --------------------------------------------------------------------------------
Insured Payments 0.00
Insurance Account Deposit @ 13bp the
ending Class A P-balance 0.00
Class Remittance Amounts 0.00
Non-Recoverable Advances not previously
reimbursed 0.00
--------------------
Total Remaining Amount Available: 0.00
====================
Amount of Reimbursements Pursuant to Sec. 5.04
Servicing Fee 0.00
Monthly Advances and Servicer Advances 0.00
Other Mortgage Payments 0.00
Interest Earned on P&I Deposits 0.00
Additional Servicing Compensation 0.00
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
______ SUB POOL _
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of ______________ and the Insurance Agreement dated as of
______________, Lee Servicing Company reports the following information
pertaining to Series ______ Sub Pool _ for _________, ___, the Remittance date.
Period Ended: _________, 19__
- -------------------------------------------------------------------------------------------------------------------
Total Class 2-A Class R
----- --------- -------
<S> <C> <C> <C>
Number of Loans 0
Opening Loan balance 0.00 0.00
Additional principal reduction, LTD 0.00 0.00
Realized losses, LTD 0.00 0.00
Carryforward amount 0.00 0.00
---------------------------------------
Total Class Principal Balance 0.00 0.00
Pool factor per loan balance #DIV/01 #DIV/01
Factor per class balance 0.0000000% 0.0000000%
Class R Remittance 0.00 0.00
Additional Principal due Class A 0.00 0.00
Deposits/Withdrawals for Cross Collaterization 0.00 0.00
Interest remittance 0.00 0.00
Principal reductions:
Prepayments - number 0 0
Prepayments - dollar 0.00 0.00
Net Liquidation Proceeds 0.00 0.00
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
______ SUB POOL _
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of ______________ and the Insurance Agreement dated as of
______________, Lee Servicing Company reports the following information
pertaining to Series ______ Sub Pool _ for _________, ___, the Remittance date.
Period Ended: _________, 19__
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Curtailments 0.00 0.00
Normal and excess payments 0.00 0.00
----------------------------------------
Total principal Remittance 0.00 0.00
Additional principal reduction 0.00 0.00
----------------------------------------
Total remittance 0.00 0.00
========================================
Carryforward Amount 0.00
Current Month Realized Loss - number 0
Current Month Realized Loss - dollar 0.00
Number of Loans # 0
Class principal balance - end of month
Loan Balance 0.00 0.00
Additional principal reduction, LTD 0.00 0.00
Realized losses, LTD 0.00 0.00
Carryforward amount 0.00 0.00
----------------------------------------
Total Class A principal 0.00 0.00
Class factor per loan balance #DIV/01 #DIV/01
Class factor per class balance #DIV/01 #DIV/01
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
______ SUB POOL _
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of ______________ and the Insurance Agreement dated as of
______________, Lee Servicing Company reports the following information
pertaining to Series ______ Sub Pool _ for _________, ___, the Remittance date.
Period Ended: _________, 19__
- -------------------------------------------------------------------------------------------------------------------
Total Class A1
----- --------
<S> <C> <C>
Weighted Note Rate: 0.00000%
Weighted Note Rate Next Remittance: 0.00000%
Pass-Through Rate: 0.00000% 0.00000%
Related Remittance Period 0-JAN-00 thru 0-JAN-00
Days in Related Period: 0
Weighted Average Remaining Term 0.00
Original Pool - Principal Balance 0.00 0.00
Original Pool - Pre-Funding Account 0.00 0.00
Original Pool - Additional Principal Reduction 0.00 0.00
---------------------------------------
Original Pool Total 0.00 0.00
Original Pool - Number of Loans 0
- -------------------------------------------------------------------------------------------------------------------
Class A OverCollaterization Reconciliation
- ------------------------------------------
Beginning of Month Current Month End of Month
------------------ ------------- ------------
Additional Principal Reduction, LTD 0.00 0.00 0.00
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
______ SUB POOL _
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of ______________ and the Insurance Agreement dated as of
______________, Lee Servicing Company reports the following information
pertaining to Series ______ Sub Pool _ for _________, ___, the Remittance date.
Period Ended: _________, 19__
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less: Realized Losses, LTD 0.00 0.00 0.00
Deposits/Withdrawals from Cross Collaterization 0.00 0.00 0.00
--------------------------------------------------------------
Overcollateralization of Principal 0.00 0.00 0.00
==============================================================
Base Overcollaterization Requirement 0.00
Current Month Subordinated Amount
- ---------------------------------
Beginning of Month Current Month End of the Month
------------------ ------------- ----------------
Original Subordinated Amount 0.00 N/A 0.00
Less: Cumulative Realized Losses 0.00 0.00 0.00
Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
--------------------------------------------------------------
Current Subordinated Amount 0.00 0.00
==============================================================
Nonrecoverable Advance Reconciliation
- -------------------------------------
Beginning of Month 0.00
Current Month Unpaid Nonrecoverable Advance 0.00
Less: Current Month Reimbursement 0.00
-----------------
End of Month 0.00
-----------------
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING COMPANY
by LEE SERVICING COMPANY, A division of SUPERIOR BANK FSB,
Designated Servicer
SERVICERS CERTIFICATE
______ SUB POOL _
In accordance with section 6.08 of the Pooling and Servicing Agreement
dated as of ______________ and the Insurance Agreement dated as of
______________, Lee Servicing Company reports the following information
pertaining to Series ______ Sub Pool _ for _________, ___, the Remittance date.
Period Ended: _________, 19__
- -------------------------------------------------------------------------------------------------------------------
Class A1
--------
<S> <C> <C>
Total Class Principal - Original Pool $0.00 $0.00
Interest Remittance Amount 0.00 0.00
Interest Rate Factor / 1000 0.000000 0.000000
Total Principal Collections 0.00 0.00
Additional Principal Reduction 0.00 0.00
-------------------------------------
Principal Remittance Amount 0.00 0.00
Principal Payment Factor/1000 0.000000 0.000000
Principal Factor 0.000000 0.000000
Prior Month Principal Factors 0 0
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
EXHIBIT R
PROPOSED SUBSEQUENT MORTGAGE LOAN SCHEDULE
<PAGE>
EXHIBIT S
MORTGAGE LOANS 30 OR MORE DAYS DELINQUENT
<PAGE>
EXHIBIT T
SUBSEQUENT TRANSFER INSTRUMENT FOR [SUB-POOL 1][SUB-POOL 2]
Pursuant to this Subsequent Transfer Instrument (the "Instrument"), dated
___________, 199__, between Superior Bank FSB, as seller (the "Depositor"), and
LaSalle National Bank, as Trustee of the AFC Mortgage Loan Asset Backed
Certificates, Series 1997-1, as purchaser (the "Trustee"), and pursuant to the
Pooling and Servicing Agreement, dated as of March 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 "Pooling and Servicing
Agreement"), the Depositor and the Trustee agree to the sale by the Depositor
and the purchase by the Trustee, on behalf of the Trust Fund, of the Mortgage
Loans listed on the attached Schedule of Mortgage Loans (the "Subsequent
Mortgage Loans").
Capitalized terms used and not defined herein have their respective
meanings as set forth in the Pooling and Servicing Agreement.
Section 1. Conveyance of Subsequent Mortgage Loans.
(a) The Depositor does hereby sell, transfer, assign, set over and convey
to the Trustee, on behalf of the Trust Fund, without recourse, all of its right,
title and interest in and to the Subsequent Mortgage Loans, excepting the
Depositor's Yield, and including all amounts due on the Subsequent Mortgage
Loans after the related Subsequent Cut-Off Date, and all items with respect to
the Subsequent Mortgage Loans to be delivered pursuant to Section 2.04 of the
Pooling and Servicing Agreement; provided, however that the Depositor reserves
and retains all right, title and interest in and to amounts (including
Prepayments, Curtailments and Excess Payments) due on the Subsequent Mortgage
Loans on or prior to the related Subsequent Cut-off Date. The Depositor,
contemporaneously with the delivery of this Agreement, has delivered or caused
to be delivered to the Trustee or, if a Custodian has been appointed pursuant to
Section 12.12 of the Pooling and Servicing Agreement, to the Custodian each item
set forth in Section 2.04 of the Pooling and Servicing Agreement. The transfer
to the Trustee by the Depositor of the Subsequent Mortgage Loans identified on
the Mortgage Loan Schedule shall be absolute and is intended by the Depositor,
the Servicer, the Trustee and the Certificateholders to constitute and to be
treated as a sale by the Depositor to the Trust Fund.
(b) The expenses and costs relating to the delivery of the Subsequent
Mortgage Loans, this Instrument and the Pooling and Servicing Agreement shall be
borne by the Depositor.
(c) Additional terms of the sale are set forth on Attachment A hereto.
<PAGE>
Section 2. Representations and Warranties; Conditions Precedent.
(a) The Depositor hereby affirms the representations and warranties set
forth in Section 3.02 of the Pooling and Servicing Agreement that relate to the
Subsequent Mortgage Loans as of the date hereof. The Depositor hereby confirms
that each of the conditions set forth in Section 2.10(b), and as applicable,
Section 2.10(c) or Section 2.10(d), of the Pooling and Servicing Agreement are
satisfied as of the date hereof.
(b) All terms and conditions of the Pooling and Servicing Agreement are
hereby ratified and confirmed; provided, however, that in the event of any
conflict the provisions of this Instrument shall control over the conflicting
provisions of the Pooling and Servicing Agreement.
Section 3. Recordation of Instrument.
To the extent permitted by applicable law, this Instrument, or a memorandum
thereof if permitted under applicable law, is subject to recordation in all
appropriate public offices for real property records in all of the counties or
other comparable jurisdictions in which any or all of the properties subject to
the Mortgages are situated, and in any other appropriate public recording office
or elsewhere, such recordation to be effected by the Servicer at the
Certificateholders' expense on direction of the Majority Certificateholders, but
only when accompanied by an Opinion of Counsel to the effect that such
recordation materially and beneficially affects the interests of the
Certificateholders or is necessary for the administration or servicing of the
Mortgage Loans.
Section 4. Governing Law.
This Instrument shall be construed in accordance with the laws of the State
of New York and the obligations, rights and remedies of the parties hereunder
shall be determined in accordance with such laws, without giving effect to
principles of conflicts of law.
Section 5. Counterparts.
This Instrument may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same instrument.
-2-
<PAGE>
Section 6. Successors and Assigns.
This Instrument shall inure to the benefit of and be binding upon the
Depositor and the Trustee and their respective successors and assigns.
SUPERIOR BANK FSB
By: _______________________________
Name:
Title:
AFC MORTGAGE LOAN ASSET
BACKED CERTIFICATES, SERIES 1997-1
By: LASALLE NATIONAL BANK,
as Trustee
By: _______________________________
Name:
Title:
Attachments
A. Additional terms of the sale.
B. Schedule of Subsequent Mortgage Loans.
C. Opinions of Depositor's counsel (bankruptcy, corporate).
D. Depositor's Officer's certificate.
E. Trustee's Certificate.
F. Opinion of Trustee's Counsel.
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<PAGE>
AFC MORTGAGE LOAN ASSET BACKED CERTIFICATES, SERIES 1997-1
ATTACHMENT A TO SUBSEQUENT TRANSFER INSTRUMENT FOR SUB-POOL 1
Series 1997-1
________, 199__
A.
1. Subsequent Cut-off Date:
1. Pricing Date:
2. Subsequent Transfer Date:
3. Aggregate Principal Balance of the Subsequent Mortgage Loans as of
the Subsequent Cut-off Date:
4. Purchase Price: 100.00%
B.
As to all the Subsequent Mortgage Loans the subject of this Instrument:
1. Longest stated term to maturity: _____ months
2. Lowest Mortgage Rate: _____ %
3. Greatest Combined Loan-to-Value Ratio: _____ %
[As to the final transfer of Subsequent Mortgage Loans:]
4. WAC of all Mortgage Loans: _____ %
5. WAM of all Mortgage Loans:_____ %
6. Weighted average CLTV: _____ %
7. Balloon Mortgage Loans: _____ %
8. Largest Principal Balance: $________
9. Non-owner occupied Mortgaged Properties: _____ %
10. Maximum California zip code concentration: _____ %
11. Condominiums: _____ %
12. Single-family: _____ %
13. Weighted average term since origination: _____ months
14. [April/May/June] first payment date: _____ %
<PAGE>
AFC MORTGAGE LOAN ASSET BACKED CERTIFICATES, SERIES 1997-1
ATTACHMENT A TO SUBSEQUENT TRANSFER INSTRUMENT FOR SUB-POOL 2
Series 1997-1
________, 199__
A.
1. Subsequent Cut-off Date:
1. Pricing Date:
2. Subsequent Transfer Date:
3. Aggregate Principal Balance of the Subsequent Mortgage Loans as of
the Subsequent Cut-off Date:
4. Purchase Price: 100.00%
B.
As to all the Subsequent Mortgage Loans the subject of this Instrument:
1. Longest stated term to maturity: _____ months
2. Minimum Mortgage Rate: _____ %
3. Maximum Mortgage Rate: _____ %
4. WAC of all Mortgage Loans: _____ %
5. WAM of all Mortgage Loans: _____ %
6. Balloon Mortgage Loans: _____ %
7. Largest Principal Balance: $________
8. Non-owner occupied Mortgaged Properties: _____ %
9. Maximum zip code concentration: _____ %
10. Condominiums: _____ %
11. Single-family: _____ %
12. Weighted average term since origination: _____ months
13. [April/May/June] first payment date: _____ %
<PAGE>
EXHIBIT U
FORM OF ADDITION NOTICE
[Date]
[Trustee]
- -------------------
- -------------------
Re: Pooling and Servicing Agreement, dated as of March 1, 1997, between
[Depositor] [Trustee] and [Servicer], relating to AFC Mortgage Loan
Asset Backed Certificates, Series 1997-1
Ladies and Gentlemen:
Pursuant to Section 2.10 of the above-captioned Pooling and Servicing
Agreement, [Depositor] has designated Subsequent Mortgage Loans to be sold to
the Trust Fund on _________, 199__, with an aggregate principal balance of
$______________. Capitalized terms not otherwise defined herein have the meaning
set forth in the Pooling and Servicing Agreement.
Please acknowledge your receipt of this notice by countersigning the
enclosed copy in the space indicated below and returning it to the attention of
the undersigned.
Very truly yours,
[DEPOSITOR]
By: _________________________
Name: _________________________
Title: _________________________
ACKNOWLEDGED AND AGREED:
[Trustee]
By: ___________________________
Name: ___________________________
Title: ___________________________
Date: ___________________________
<PAGE>
EXHIBIT V
OFFICER'S CERTIFICATE
I, _________________ hereby certify that I am the duly elected
______________ of Superior Bank FSB, a federally chartered stock savings bank
(the "Depositor"), and further, to the best of my knowledge and after due
inquiry, as follows:
Each condition precedent specified in Section 2.10(b) and [Section
2.10(c) for Sub-Pool 1 Mortgage Loans] [Section 2.10(d) for Sub-Pool 2
Mortgage Loans] of the Pooling and Servicing Agreement, dated as of March
1, 1997, among the Depositor, Lee Servicing Company, a division of Superior
Bank FSB, and LaSalle National Bank, as Trustee (the "Pooling and Servicing
Agreement") and each condition precedent specified in the Subsequent
Transfer Instrument has been satisfied by the Depositor.
Capitalized terms not otherwise defined herein have the meanings set forth
in the Pooling and Servicing Agreement.
IN WITNESS WHEREOF, I have hereunto signed my name.
Dated: _________ __, 199__ By: ____________________________________
Name:
Title:
<PAGE>
EXHIBIT W
FORM OF AGREEMENT OF APPOINTMENT AND
ACCEPTANCE OF SEPARATE TRUSTEE
This AGREEMENT OF APPOINTMENT AND ACCEPTANCE OF SEPARATE TRUSTEE (the
"Agreement") is dated as of the ____ day of _________, _____, by and among
SUPERIOR BANK FSB, as Depositor (the "Company"), LEE SERVICING COMPANY, A
DIVISION OF SUPERIOR BANK FSB, as Servicer (the "Servicer"), LaSalle National
Bank, as Trustee (the "Trustee"), and ______________, as Separate Trustee (the
"Separate Trustee").
RECITALS
A. The Company, the Servicer and the Trustee have entered into that certain
Pooling and Servicing Agreement dated as of March 1, 1997 (as amended,
supplemented or modified from time to time, the "Pooling Agreement") relating to
the AFC Mortgage Loan Asset Backed Certificates, Series 1997-1 (the "Trust").
B. Pursuant to the terms and conditions of the Pooling Agreement, the
Company will assign and deliver to the Trustee certain home equity loans and the
mortgages related thereto comprising part of the Trust Fund (as defined in the
Pooling Agreement).
C. Pursuant to the terms and conditions of the Pooling Agreement, the
Trustee shall act as trustee for, and on behalf and for the benefit of, the
Certificateholders (as defined in the Pooling Agreement).
D. The laws of the State of New Jersey prohibit the transfer of second
mortgage loans originated in New Jersey except to certain transferees, which
transferees would not include the Trustee but would include a national banking
association having its principal office in the State of New Jersey, such as the
Separate Trustee.
E. In order to permit the Company to transfer to the Trust Fund certain
second mortgage loans originated in the State of New Jersey, the parties hereto
intend to appoint, pursuant to Section 12.10 of the Pooling Agreement, the
Separate Trustee, who, as a separate trustee with and on behalf of the Trustee
under the Pooling Agreement, will be the assignee of the mortgage assignments
executed and to be recorded in the State of New Jersey in connection with the
formation of the Trust Fund (the "Assignments"), and the Separate Trustee is so
named in the Pooling Agreement and in the Assignments, for the limited purpose
of satisfying said New Jersey state law requirements and consequently exercising
such duties and functions as may be prescribed herein and under the Pooling
Agreement.
<PAGE>
NOW, THEREFORE, the Company, the Trustee and the Separate Trustee do hereby
agree as follows:
1. Appointment of the Separate Trustee; Acceptance of Appointment. To the
extent that the Trust Fund consists of home equity loans secured by mortgages
relating to real estate located in the State of New Jersey ("New Jersey Home
Equity Loans"), the Company and the Trustee hereby appoint the Separate Trustee,
as of the date hereof, as separate trustee under the Pooling Agreement, of that
part of the Trust Fund consisting of the New Jersey Home Equity Loans and the
Separate Trustee is hereby vested with legal title to the New Jersey Home Equity
Loans, as of such date, to the extent required by New Jersey law, the power of
the Separate Trustee to be exercised subject to the provisions of this Agreement
and Section 12.10 of the Pooling Agreement.
The Separate Trustee hereby acknowledges that its principal office is
located in the State of New Jersey, accepts the foregoing appointment and agrees
to act as separate trustee with the Trustee, its successors and assigns under
the Pooling Agreement and the Assignments, and to exercise its duties as
separate trustee, in and only in the event of a written request by the Trustee.
2. Limited Scope of Appointment and Duties. The Separate Trustee shall act
as separate trustee under the Pooling Agreement and the Assignments only upon,
and to the extent of, written instructions from the Trustee and no other party.
The Separate Trustee shall not be required to take, nor shall it be responsible
for taking, any action as separate trustee under the Pooling Agreement or the
Assignments unless it has received such written instructions from the Trustee.
The Separate Trustee shall owe no duty as separate trustee under the
Pooling Agreement and the Assignments to any party other than the Trustee and
the Certificateholders. The Trustee shall consult with the Separate Trustee with
respect to decisions deemed by the Trustee to be significant to be made with
respect to the exercise of any powers to be exercised by the Separate Trustee
and, upon request of the Separate Trustee, will provide the Separate Trustee
with copies of all notices and other documents pursuant to which it exercises
its duties as the Trustee.
Any provision of this Agreement or the Pooling Agreement or the Assignments
to the contrary notwithstanding, the Separate Trustee shall have no power to act
in any manner inconsistent with the terms of the Pooling Agreement with respect
to, or to vary the investment in, the trust created hereby.
3. Appointment of the Trustee as Attorney-in-Fact. Wherever and to the
fullest extent permitted by law, the Separate Trustee hereby irrevocably
appoints the Trustee as its agent and Attorney-in-Fact for the purpose of
executing any and all documents which the Separate Trustee may be required, as
separate trustee under the Pooling Agreement and the Assignments, to execute;
provided, however, that nothing in this Agreement shall be deemed
-2-
<PAGE>
an admission that the Separate Trustee is required to execute any of such
documents in its capacity as separate trustee under the Pooling Agreement and
the Assignments.
4. Notices. Notices and instructions under this Agreement shall be deemed
given under this Agreement when sent by overnight courier or when mailed by
Certified Mail, Return Receipt Requested, to the parties at their addresses
provided below or at such other addresses as the parties may direct:
If to the Trustee:
------------------
LaSalle National Bank
135 S. LaSalle Street, Suite 200
Chicago, Illinois, 60674-4107
Attention: Asset-Backed Securities
Trust Services Department - AFC 1997-1
------------------
If to the Separate Trustee:
---------------------------
_____________________
_____________________
_____________________
(with copy to the Trustee)
If to the Company:
------------------
Superior Bank FSB
One Lincoln Centre
Oakbrook Terrace, Illinois 60181
Attention: Mr. William C. Bracken
Senior Vice President and
Chief Financial Officer
If to the Servicer:
-------------------
Lee Servicing Company, a division
of Superior Bank FSB
One Lincoln Centre
Oakbrook Terrace, Illinois 60181
Attention: Mr. William C. Bracken
Senior Vice President and
Chief Financial Officer
-3-
<PAGE>
5. Choice of Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.
6. Counterparts. This Agreement may be executed in one or more counterparts
and by the different parties hereto on separate counterparts, each of which,
when so executed, shall be deemed to be an original; such counterparts,
together, shall constitute one and the same agreement.
-4-
<PAGE>
IN WITNESS WHEREOF, the Company, the Servicer, the Trustee and the Separate
Trustee hereby execute this Agreement as of the date first set forth above.
COMPANY:
SUPERIOR BANK FSB
By:_____________________________________
Name:
Title:
TRUSTEE:
LASALLE NATIONAL BANK, as Trustee
By:_____________________________________
Name:
Title:
SEPARATE TRUSTEE:
________________________, as Separate Trustee
By:_____________________________________
Name:
Title:
SERVICER:
LEE SERVICING COMPANY, a
division of Superior Bank FSB
By:_____________________________________
Name:
Title:
-5-
