================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 26, 1998
SUPERIOR BANK FSB (as depositor under the Pooling and Servicing Agreement, dated
as of March 1, 1998, providing for the issuance of AFC Mortgage Loan Asset
Backed Certificates, Series 1998-1)
SUPERIOR BANK FSB
---------------------------------------------------
(Exact name of registrant as specified in its charter)
UNITED STATES 333-39199 36-1414142
- ---------------------------- ----------- ----------------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification Number)
ONE LINCOLN CENTRE
OAKBROOK TERRACE, ILLINOIS 60181
-------------------------------------------------- -----------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (630) 916-4000
================================================================================
<PAGE>
Item 5. Other Events
On October 26, 1998 (a "Remittance Date") a scheduled remittance was made
to the Certificateholders with respect to AFC Mortgage Loan Asset Backed
Certificates, Series 1998-1, issued pursuant to a Pooling and Servicing
Agreement, dated as of March 1, 1998, among Superior Bank FSB., as Depositor and
Servicer and LaSalle National Bank, as Trustee. The information contained in the
Servicer's Monthly Remittance Report to the Trustee, which shall be forwarded by
the Trustee to the Certificateholders, is attached hereto as Exhibit 21.1 and is
incorporated herein by reference.
Capitalized terms used herein and not defined shall have the same
meanings ascribed to them in the Pooling and Servicing Agreement.
Items 2 through 4 and Items 6 and 8 are not included because they are not
applicable.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Not applicable
(b) Not applicable
(c) Exhibits
21.1 Monthly Remittance Report for the month of October, 1998.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SUPERIOR BANK F.S.B.
By: /s/ WILLIAM C. BRACKEN
--------------------------------
Name: William C. Bracken
Title: Senior Vice President
Dated: October 26, 1998
<PAGE>
EXHIBITS TABLE
21.1 Monthly Remittance Report for the month of October, 1998.
EXHIBIT 21.1
<PAGE>
Revised 10/23/98
<TABLE>
<CAPTION>
ALLIANCE FUNDING PAGE 1 OF 4
by SUPERIOR BANK FSB-SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-1 Group 1 (Sub-Pools 1 & 2)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of March 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-1 Group 1 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP 1 SUB-POOL 1 SUB-POOL 2
COLLECTIONS -------------- --------------- --------------
-------------------------
<S> <C> <C> <C>
1 Total Actual Principal Collections 4,752,382.36 1,619,268.69 3,133,113.67
2 Total Actual Interest Collections 2,121,491.19 828,227.42 1,293,263.77
3 Service Fees Previously Remitted 128,384.64 50,417.32 77,967.32
4 Additional Proceeds 0.00 0.00 0.00
-------------- --------------- --------------
5 Total Collections: 6,745,488.91 2,397,078.79 4,348,410.12
MONTHLY ADVANCES
--------------------------
6 Delinquent Interest Advance 9,584.06 22,537.46 (12,953.40)
7 Compensating Interest 19,202.76 6,792.81 12,409.95
8 Amounts Held for Future Distributions 0.00 0.00 0.00
9 Cross Collateral Deposit 0.00 0.00 0.00
10 Reserve Withdrawal per Sec. 6.14 0.00 0.00 0.00
-------------- --------------- --------------
11 AVAILABLE REMITTANCE AMOUNT: 6,774,275.73 2,426,409.06 4,347,866.67
FEES
---------------------------
12 Service Fees 0.00 0.00 0.00
13 Expense Account Deposit: 5,645.53 2,306.16 3,339.37
-------------- --------------- --------------
14 ADJUSTED REMITTANCE AMOUNT: 6,768,630.20 2,424,102.90 4,344,527.30
REMAINING AMOUNT AVAILABLE:
15 Adjusted Remittance Amount 6,768,630.20
16 Insured Payments due 0.00
17 Monthly Insurance Premium @ 13bp
the Ending Principal Balance 24,463.07
18 Cross Collateral Withdrawal 0.00
19 Class Remittance Amounts 6,744,167.13
20 Non-Recoverable Advances not
Previously Reimbursed 0.00
-------------
21 Total Remaining Amount Available: 0.00
=============
REIMBURSEMENTS DUE PURSUANT TO SEC. 5.04
22 Servicing Fee 0.00 0.00 0.00
23 Monthly Advances and Servicer Advances 0.00 0.00 0.00
24 Preference Amount per Sec. 6.06(b) 0.00 0.00 0.00
25 Servicing compensation per Sec. 7.03 0.00 0.00 0.00
26 REO Mgmt. & Dispositions per Sec 5.10 0.00 0.00 0.00
27 Trustee Advances per Sec 11.01 0.00 0.00 0.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING
by SUPERIOR BANK FSB-SERVICING DIVISION PAGE 2 OF 4
Designated Servicer
SERVICER'S CERTIFICATE
1998-1 Group 1 (Sub-Pools 1 & 2)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of March 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-1 Group 1 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Group 1 Class 1A-1 Class 1A-2 Class R
--------------- -------------- -------------- -------
<S> <C> <C> <C> <C> <C>
32 Loans Outstanding - BOM 3,841 1,390 2,451
33 Original Loan Balance 238,505,154.01 96,539,235.81 141,965,918.20
34 Pre-Funding Account Balance 0.00 0.00 0.00
35 Initial Overcollateralization 7,939,863.28 2,681,805.01 5,258,058.27
36 Realized Losses, LTD 8,140.97 8,140.97 0.00
37 Carryforward Amount 0.00 0.00 0.00
--------------- -------------- --------------
38 Total Class Principal Balance 230,573,431.70 93,865,571.77 136,707,859.93
39 Pool Factor per Loan Balance 95.4020616% 38.6156943% 56.7863673%
40 Pool Factor per Class Balance 92.2293727% 37.5462287% 54.6831440%
41 Excess Spread 0.00 0.00
42 Principal Collection Factor 100.0000000% 34.0727780% 65.9272220%
43 Additional Principal due 828,349.34 282,241.63 546,107.71
44 Cross Collateral Withdrawal 0.00 0.00
45 Cross Collateral Deposit 0.00 0.00 0.00
46 Interest Remittance @ Pass-Through Rate 1,163,435.43 473,150.93 690,284.50
Principal Reductions:
47 Prepayments - Number 65 21 44
48 Prepayments - Dollar 4,481,576.15 1,548,886.41 2,932,689.74
49 Delinquent Loans Repurchased - Number 0 0 0
50 Delinquent Loans Repurchased - Dollar 0.00 0.00 0.00
51 Net Liquidation Proceeds 0.00 0.00 0.00
52 Curtailments 10,561.09 1,083.26 9,477.83
53 Normal and Excess Payments 260,245.12 69,299.02 190,946.10
--------------- -------------- --------------
54 Principal Remittance 4,752,382.36 1,619,268.69 3,133,113.67
--------------- -------------- --------------
55 Total Principal Remittance 4,752,382.36 1,619,268.69 3,133,113.67
56 Additional Principal Reduction 828,349.34 282,241.63 546,107.71
--------------- -------------- -------------- -------
57 Total Remittance 6,744,167.13 2,374,661.25 4,369,505.88 0.00
=============== ============== ============== =======
58 Current Month Realized Loss - Number 0 0 0 0
59 Current Month Realized Loss - Dollar 0.00 0.00 0.00 0.00
Class Principal Balance - EOM
60 Loans Outstanding - EOM 3776 1369 2407
61 Closing Loan Balance 233,752,771.65 94,919,967.12 138,832,804.53
62 Pre-Funding Account Balance 0.00 0.00 0.00
63 Additional Principal Reduction, LTD 8,768,212.62 2,964,046.64 5,804,165.98
64 Realized Losses, LTD 8,140.97 8,140.97 0.00
--------------- -------------- --------------
65 Total Class Principal Balance 224,992,700.00 91,964,061.45 133,028,638.55
66 Pool Factor per Loan Balance 93.5011086% 37.9679868% 55.5331218%
67 Pool Factor per Class Balance 169.8142631% 36.7856246% 133.0286386%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING
by SUPERIOR BANK FSB-SERVICING DIVISION PAGE 3 OF 4
Designated Servicer
SERVICER'S CERTIFICATE
1998-1 Group 1 (Sub-Pools 1 & 2)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of March 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-1 Group 1 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S><C> <C> <C> <C>
68 Weighted Note Rate - THIS Remittance 10.82905% 10.68404% 10.92766%
69 Weighted Note Rate - NEXT Remittance 10.81625% 10.67611% 10.91206%
70 Weighted Average Remaining Term 233.04 256.09 217.28
71 Accrual Period for Libor Rate 25-Sep-98 thru 25-Oct-98
72 Days in Related Period 31
73 Pass-Through Rate 5.85375% 5.86375%
GROUP 1 SUBPOOL 1 SUBPOOL 2
--------------- -------------- ---------------
74 Original Pool - Principal Balance 180,932,515.76 70,000,198.22 110,932,317.54
75 Original Pool - Pre-Funding Account 71,848,070.66 31,112,036.36 40,736,034.30
76 Original Pool - Initial Overcollateralization 2,780,586.42 1,112,234.58 1,668,351.84
--------------- ------------- ---------------
77 Original Pool Total 250,000,000.00 100,000,000.00 150,000,000.00
78 Original Pool - Number of Loans 2,841 1,000 1,841
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS 1A-1 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
BEG. OF MONTH CURRENT MONTH END OF MONTH
--------------- -------------- ---------------
79 Initial Overcollateralization 2,681,805.01 282,241.63 2,964,046.64
80 Less: Realized Losses, LTD 8,140.97 0.00 8,140.97
81 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
--------------- ------------- ---------------
82 Overcollateralization of Principal 2,673,664.04 282,241.63 2,955,905.67
=============== ============= ===============
83 Base Overcollateralization Required* 6,268,958.54
84 Required Overcollateralization Amount 6,268,958.54
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS 1A-2 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
BEG. OF MONTH CURRENT MONTH END OF MONTH
--------------- -------------- ---------------
85 Initial Overcollateralization 5,258,058.27 546,107.71 5,804,165.98
86 Less: Realized Losses, LTD 0.00 0.00 0.00
87 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
--------------- ------------- ---------------
88 Overcollateralization of Principal 5,258,058.27 546,107.71 5,804,165.98
=============== ============= ===============
89 Base Overcollateralization Required* 9,403,437.82
90 Required Overcollateralization Amount 9,403,437.82
- -----------------------------------------------------------------------------------------------------------------------------------
CURRENT MONTH SUBORDINATED AMOUNT BEG. OF MONTH CURRENT MONTH END OF MONTH
----------------------------------------------- --------------- ------------- ---------------
91 Original Group 1 Subordinated Amount* 31,850,353.89 N/A 31,850,353.89
92 Less: Group 1 Cumulative Realized Losses 8,140.97 0.00 0.00
93 Plus: Group 1 Cumulative Additional Proceeds 0.00 0.00 0.00
--------------- ------------- ---------------
94 Current Group 1 Subordinated Amount 31,842,212.92 0.00 31,850,353.89
=============== ============= ===============
* As per Insurance Supplement
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING
by SUPERIOR BANK FSB-SERVICING DIVISION PAGE 4 OF 4
Designated Servicer
SERVICER'S CERTIFICATE
1998-1 Group 1 (Sub-Pools 1 & 2)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of March 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-1 Group 1 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NONRECOVERABLE ADVANCE RECONCILIATION GROUP 1
-------------------------------------------- --------------
95 Beginning of Month 0.00
96 Current Month Unpaid Nonrecoverable Advance 0.00
97 Less: Current Month Reimbursement 0.00
--------------
98 End of Month 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS FACTORS GROUP 1 CLASS 1A-1 CLASS 1A-2
------------------------------------------- -------------- -------------- --------------
99 Total Class Principal - Original Pool 250,000,000.00 100,000,000.00 150,000,000.00
10 Interest Remittance Amount 1,163,435.43 473,150.93 690,284.50
101 Interest Rate Factor / 1000 4.653742 4.731509 4.601897
102 Total Principal Collections 4,752,382.36 1,619,268.69 3,133,113.67
103 Prefunding Account Excess 0.00 0.00 0.00
104 Additional Principal Reduction 828,349.34 282,241.63 546,107.71
------------- -------------- --------------
105 Principal Remittance Amount 5,580,731.70 1,901,510.32 3,679,221.38
106 Principal Payment Factor/1000 22.322927 19.015103 24.528143
107 Current Month Ending Principal Factor 899.970800 919.640615 886.857589
108 Prior Month Ending Principal Factor 922.293727 938.655718 911.385732
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING PAGE 1 OF 4
by SUPERIOR BANK FSB-SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-1 Group 2 (Sub-Pools 3 & 4)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of March 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-1 Group 2 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP 2 SUB-POOL 3 SUB-POOL 4
------------- ------------- ------------
<S><C> <C> <C> <C>
COLLECTIONS
---------------------------------------
1 Total Actual Principal Collections 4,159,868.58 1,456,614.24 2,703,254.34
2 Total Actual Interest Collections 1,500,069.26 442,157.28 1,057,911.98
3 Service Fees Previously Remitted 94,280.45 27,666.47 66,613.98
4 Additional Proceeds 0.00 0.00 0.00
------------- ------------- ------------
5 TOTAL COLLECTIONS: 5,565,657.39 1,871,105.05 3,694,552.34
MONTHLY ADVANCES
---------------------------------------
6 Delinquent Interest Advance 71,155.17 (7,239.26) 78,394.43
7 Compensating Interest 16,175.21 4,460.30 11,714.91
8 Amounts Held for Future Distributions 0.00 0.00 0.00
9 Cross Collateral Deposit 0.00 0.00 0.00
10 Reserve Withdrawal per Sec. 6.14 0.00 0.00 0.00
------------- ------------- ------------
11 AVAILABLE REMITTANCE AMOUNT: 5,652,987.77 1,868,326.09 3,784,661.68
FEES
---------------------------------------
12 Service Fees 0.00 0.00 0.00
13 Expense Account Deposit: 4,321.40 1,187.52 3,133.88
------------- ------------- ------------
14 ADJUSTED REMITTANCE AMOUNT: 5,648,666.37 1,867,138.57 3,781,527.80
REMAINING AMOUNT AVAILABLE:
15 Adjusted Remittance Amount 5,648,666.37
16 Insured Payments due 0.00
17 Monthly Insurance Premium @ 13bp
the Ending Principal Balance 18,725.95
18 Cross Collateral Withdrawal 0.00
19 Class Remittance Amounts 5,629,940.42
20 Non-Recoverable Advances not
Previously Reimbursed 0.00
-------------
21 Total Remaining Amount Available: 0.00
============
REIMBURSEMENTS DUE PURSUANT TO SEC. 5.04
22 Servicing Fee 0.00 0.00 0.00
23 Monthly Advances and Servicer Advances 0.00 0.00 0.00
24 Preference Amount per Sec. 6.06(b) 0.00 0.00 0.00
25 Servicing compensation per Sec. 7.03 0.00 0.00 0.00
26 REO Mgmt. & Dispositions per Sec 5.10 0.00 0.00 0.00
27 Trustee Advances per Sec 11.01 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING PAGE 2 OF 4
by SUPERIOR BANK FSB-SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-1 Group 2 (Sub-Pools 3 & 4)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of March 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-1 Group 2 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP 2 CLASS 2A-1 CLASS 2A-2 CLASS R
-------------- ------------- -------------- -----------
<S><C> <C> <C> <C> <C>
28 Loans Outstanding - BOM 1,626 542 1,084
29 Original Loan Balance 184,377,977.46 50,897,446.66 133,480,530.80
30 Initial Overcollaterization 7,363,186.86 1,940,050.46 5,423,136.40
31 Realized Losses, LTD 904.10 0.00 904.10
32 Carryforward Amount 0.00 0.00 0.00
-------------- ------------- --------------
33 Total Class Principal Balance 177,015,694.70 48,957,396.20 128,058,298.50
34 Pool Factor per Loan Balance 92.1889887% 25.4487233% 66.7402654%
35 Pool Factor per Class Balance 88.5078474% 24.4786981% 64.0291492%
36 Excess Spread 0.00 0.00
37 Principal Collection Factor 100.0000000% 35.0158716% 64.9841284%
38 Additional Principal due 587,351.06 205,666.09 381,684.97
39 Cross Collateral Withdrawal 0.00 0.00
40 Cross Collateral Deposit 0.00 0.00 0.00
41 Interest Remittance @ Pass-Through Rate 882,720.78 243,829.93 638,890.85
PRINCIPAL REDUCTIONS:
42 Prepayments - Number 33 12 21
43 Prepayments - Dollar 4,075,357.72 1,432,223.11 2,643,134.61
44 Delinquent Loans Repurchased - Number 0 0 0
45 Delinquent Loans Repurchased - Dollar 0.00 0.00 0.00
46 Net Liquidation Proceeds 0.00 0.00 0.00
47 Curtailments 0.00 0.00 0.00
48 Normal and Excess Payments 84,510.86 24,391.13 60,119.73
-------------- ------------- --------------
49 Principal Remittance 4,159,868.58 1,456,614.24 2,703,254.34
-------------- ------------- --------------
50 Total Principal Remittance 4,159,868.58 1,456,614.24 2,703,254.34
51 Additional Principal Reduction 587,351.06 205,666.09 381,684.97
-------------- ------------- -------------- ------
52 TOTAL REMITTANCE 5,629,940.42 1,906,110.26 3,723,830.16 0.00
============== ============ ============== ======
53 Current Month Realized Loss - Number 0 0 0 0
54 Current Month Realized Loss - Dollar 0.00 0.00 0.00 0.00
CLASS PRINCIPAL BALANCE - EOM
55 Loans Outstanding - EOM 1593 530 1063
56 Closing Loan Balance 180,218,108.88 49,440,832.42 130,777,276.46
58 Additional Principal Reduction, LTD 7,950,537.92 2,145,716.55 5,804,821.37
59 Realized Losses, LTD 904.10 0.00 904.10
-------------- ------------- --------------
60 Total Class Principal Balance 172,268,475.06 47,295,115.87 124,973,359.19
61 Pool Factor per Loan Balance 90.1090544% 24.7204162% 65.3886382%
62 Pool Factor per Class Balance 250.8718474% 23.6475579% 227.2242894%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING PAGE 3 OF 4
by SUPERIOR BANK FSB-SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-1 Group 2 (Sub-Pools 3 & 4)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of March 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-1 Group 2 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S><C> <C> <C> <C>
63 Weighted Note Rate - THIS Remittance 10.35221% 10.33746% 10.35783%
64 Weighted Note Rate - NEXT Remittance 10.37635% 10.35278% 10.38526%
65 Weighted Average Remaining Term 351.15 351.37 351.06
66 Accrual Period for Libor Rate 25-Sep-98 thru 25-Oct-98
67 Days in Related Period 31
68 Pass-Through Rate 5.78375% 5.79375%
GROUP 2 SUBPOOL 3 SUBPOOL 4
-------------- ------------- --------------
69 Original Pool - Principal Balance 142,610,986.32 49,999,948.51 92,611,037.81
70 Original Pool - Pre-Funding Account 61,055,001.48 6,008,198.14 55,046,803.34
71 Original Pool - Initial Overcollateralization 3,665,987.80 1,008,146.65 2,657,841.15
-------------- ------------- --------------
72 Original Pool Total 200,000,000.00 55,000,000.00 145,000,000.00
73 Original Pool - Number of Loans 1,271 531 740
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS 2A-1 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
Beg.of Month Current Month End of Month
-------------- ------------- --------------
74 Initial Overcollateralization 1,940,050.46 205,666.09 2,145,716.55
75 Less: Realized Losses, LTD 0.00 0.00 0.00
-------------- ------------- --------------
76 Overcollateralization of Principal 1,940,050.46 205,666.09 2,145,716.55
============== ============= ==============
77 Base Overcollateralization Required 2,968,431.77
78 Required Overcollateralization Amount 2,968,431.77
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS 2A-2 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
Beg.of Month Current Month End of Month
-------------- ------------- --------------
79 Initial Overcollateralization 5,423,136.40 381,684.97 5,804,821.37
80 Less: Realized Losses, LTD 904.10 0.00 904.10
-------------- ------------- --------------
81 Overcollateralization of Principal 5,422,232.30 381,684.97 5,803,917.27
82 Base Overcollateralization Required 7,825,865.58
83 Required Overcollateralization Amount 7,825,865.58
- ------------------------------------------------------------------------------------------------------------------------------------
CURRENT MONTH SUBORDINATED AMOUNT Beg.of Month Current Month End of Month
----------------------------------------------- -------------- ------------- --------------
84 Original Group 2 Subordinated Amount* 24,134,419.55 N/A 24,134,419.55
85 Less: Group 2 Cumulative Realized Losses 904.10 0.00 904.10
86 Plus: Group 2 Cumulative Additional Proceeds 0.00 0.00 0.00
-------------- ------------- --------------
87 Current Group 2 Subordinated Amount 24,133,515.45 0.00 24,133,515.45
============== ============= ==============
* Per Insurance Supplement
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLIANCE FUNDING PAGE 4 OF 4
by SUPERIOR BANK FSB-SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-1 Group 2 (Sub-Pools 3 & 4)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of March 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-1 Group 2 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
NONRECOVERABLE ADVANCE RECONCILIATION GROUP 2
-------------------------------------------- --------------
<S> <C> <C> <C> <C>
88 Beginning of Month 0.00
89 Current Month Unpaid Nonrecoverable Advance 0.00
90 Less: Current Month Reimbursement 0.00
91 End of Month 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS FACTORS Group 2 Class 1A-1 Class 1A-2
------------- -------------- ------------- --------------
92 Total Class Principal - Original Pool 200,000,000.00 55,000,000.00 145,000,000.00
93 Interest Remittance Amount 882,720.78 243,829.93 638,890.85
94 Interest Rate Factor / 1000 4.413604 4.433271 4.406144
95 Total Principal Collections 4,159,868.58 1,456,614.24 2,703,254.34
96 Prefunding Account Excess 0.00 0.00 0.00
97 Additional Principal Reduction 587,351.06 205,666.09 381,684.97
-------------- ------------- --------------
98 Principal Remittance Amount 4,747,219.64 1,662,280.33 3,084,939.31
99 Principal Payment Factor/1000 23.736098 30.223279 21.275442
100 Current Month Ending Principal Factor 861.342376 859.911197 861.885243
101 Prior Month Ending Principal Factor 885.078474 890.134476 883.160685
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
