- -------------------------------------------------------------------------------
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) September 25, 1998
SUPERIOR BANK FSB (as depositor under the Pooling and Servicing Agreement, dated
as of June 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 September 25, 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 September, 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: September 25, 1998
<PAGE>
EXHIBITS TABLE
21.1 Monthly Remittance Report for the month of September, 1998.
<TABLE>
<CAPTION>
PAGE 1 OF 4
ALLIANCE FUNDING
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 September 25, 1998, the Remittance date.
Due period ended: September 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP 1 SUB-POOL 1 SUB-POOL 2
------------ ------------ ------------
<S> <C> <C> <C> <C>
COLLECTIONS
-----------
1 Total Actual Principal Collections 3,703,214.89 1,509,069.06 2,194,145.83
2 Total Actual Interest Collections 2,157,515.10 849,012.11 1,308,502.99
3 Service Fees Previously Remitted 129,939.44 51,871.78 78,067.66
4 Additional Proceeds 0.00 0.00 0.00
------------ ------------ ------------
5 TOTAL COLLECTIONS: 5,730,790.55 2,306,209.39 3,424,581.16
MONTHLY ADVANCES
----------------
6 Delinquent Interest Advance 15,044.34 17,996.33 (2,951.99)
7 Compensating Interest 13,031.99 4,901.44 8,130.55
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: 5,758,866.88 2,329,107.16 3,429,759.72
FEES
----
12 Service Fees 0.00 0.00 0.00
13 Expense Account Deposit: 5,784.82 2,354.87 3,429.95
------------ ------------ ------------
14 ADJUSTED REMITTANCE AMOUNT: 5,753,082.06 2,326,752.29 3,426,329.77
REMAINING AMOUNT AVAILABLE:
15 Adjusted Remittance Amount 5,753,082.06
16 Insured Payments due 0.00
17 Insurance Account Deposit @ 13 bp
the Ending Principal Balance 25,067.54
18 Cross Collateral Withdrawal 0.00
19 Class Remittance Amounts 5,728,014.52
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
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PAGE 2 OF 4
ALLIANCE FUNDING
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 September 25, 1998, the Remittance date.
Due period ended: September 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP 1 CLASS 1A-1 CLASS 1A-2 CLASS R
------- ---------- ---------- -------
<S> <C> <C> <C> <C> <C>
32 Loans Outstanding - BOM 3,901 1,409 2,492
33 Original Loan Balance 242,216,509.87 98,056,445.84 144,160,064.03
34 Pre-Funding Account Balance 0.00 0.00 0.00
35 Initial Overcollateralization 7,112,431.99 2,344,624.75 4,767,807.24
36 Realized Losses, LTD 0.00 0.00 0.00
37 Carryforward Amount 0.00 0.00 0.00
----------------------------------------------------
38 Total Class Principal Balance 235,104,077.88 95,711,821.09 139,392,256.79
39 Pool Factor per Loan Balance 96.8866039% 39.2225783% 57.6640256%
40 Pool Factor per Class Balance 94.0416312% 38.2847284% 55.7569027%
41 Excess Spread 0.00 0.00
42 Principal Collection Factor 100.0000000% 40.7502428% 59.2497572%
43 Additional Principal due 827,431.29 337,180.26 490,251.03
44 Cross Collateral Withdrawal 0.00 0.00
45 Cross Collateral Deposit 0.00 0.00 0.00
46 Interest Remittance @ Pass-Through Rate 1,197,368.34 486,964.84 710,403.50
PRINCIPAL REDUCTIONS:
47 Prepayments - Number 59 18 41
48 Prepayments - Dollar 3,272,159.04 1,307,962.38 1,964,196.66
49 Delinquent Loans Repurchased - Number 0 0 0
50 Delinquent Loans Repurchased - Dollar 0.00 0.00 0.00
51 Net Liquidation Proceeds 53,959.03 53,959.03 0.00
52 Curtailments 116,743.27 72,214.17 44,529.10
53 Normal and Excess Payments 260,353.55 74,933.48 185,420.07
--------------------------------------------------------------------
54 Principal Remittance 3,649,255.86 1,509,069.06 2,194,145.83
--------------------------------------------------------------------
55 Total Principal Remittance 3,649,255.86 1,509,069.06 2,194,145.83
56 Additional Principal Reduction 827,431.29 337,180.26 490,251.03
--------------------------------------------------------------------
57 TOTAL REMITTANCE 5,728,014.52 2,333,214.16 3,394,800.36 0.00
====================================================================
58 Current Month Realized Loss - Number 1 1 0 1
59 Current Month Realized Loss - Dollar 8,140.97 8,140.97 0.00 8,140.97
CLASS PRINCIPAL BALANCE - EOM
60 Loans Outstanding - EOM 3841 1390 2451
61 Closing Loan Balance 238,505,154.01 96,539,235.81 141,965,918.20
62 Pre-Funding Account Balance 0.00 0.00 0.00
63 Additional Principal Reduction, LTD 7,939,863.28 2,681,805.01 5,258,058.27
64 Realized Losses, LTD 8,140.97 8,140.97 0.00
--------------------------------------------------------------------
65 Total Class Principal Balance 230,573,431.70 93,865,571.77 136,707,859.93
66 Pool Factor per Loan Balance 95.4020616% 38.6156943% 56.7863673%
67 Pool Factor per Class Balance 174.2540886% 37.5462287% 136.7078599%
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PAGE 3 OF 4
ALLIANCE FUNDING
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 September 25, 1998, the Remittance date.
Due period ended: September 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
68 Weighted Note Rate - THIS Remittance 10.83755% 10.69275% 10.93605%
69 Weighted Note Rate - NEXT Remittance 10.82905% 10.68404% 10.92766%
70 Weighted Average Remaining Term 233.92 256.79 218.37
71 Accrual Period for Libor Rate 25-Aug-98 thru 24-Sep-98
72 Days in Related Period 31
73 Pass-Through Rate 5.90844% 5.91844%
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 2,344,624.75 337,180.26 2,681,805.01
80 Less: Realized Losses, LTD 0.00 8,140.97 8,140.97
81 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
-----------------------------------------------------------
82 Overcollateralization of Principal 2,344,624.75 329,039.29 2,673,664.04
===========================================================
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 4,767,807.24 490,251.03 5,258,058.27
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 4,767,807.24 490,251.03 5,258,058.27
===========================================================
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 0.00 8,140.97 8,140.97
93 Plus: Group 1 Cumulative Additional Proceeds 0.00 0.00 0.00
-----------------------------------------------------------
94 Current Group 1 Subordinated Amount 31,850,353.89 (8,140.97) 31,842,212.92
===========================================================
* As per Insurance Supplement
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PAGE 4 OF 4
ALLIANCE FUNDING
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 September 25, 1998, the Remittance date.
Due period ended: September 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
NONRECOVERABLE ADVANCE RECONCILIATION GROUP 1
-------
<S> <C> <C>
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
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS FACTORS GROUP 1 CLASS 1A-1 CLASS 1A-2
------------- ------- ---------- ----------
<S> <C> <C> <C> <C>
99 Total Class Principal - Original Pool 250,000,000.00 100,000,000.00 150,000,000.00
10 Interest Remittance Amount 1,197,368.34 486,964.84 710,403.50
101 Interest Rate Factor / 1000 4.789473 4.869648 4.736023
102 Total Principal Collections 3,703,214.89 1,509,069.06 2,194,145.83
103 Prefunding Account Excess 0.00 0.00 0.00
104 Additional Principal Reduction 827,431.29 337,180.26 490,251.03
-------------- -------------- --------------
105 Principal Remittance Amount 4,530,646.18 1,846,249.32 2,684,396.86
106 Principal Payment Factor/1000 18.122585 18.462493 17.895979
107 Current Month Ending Principal Factor 922.293727 938.655718 911.385732
108 Prior Month Ending Principal Factor 940.416312 957.118211 929.281711
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PAGE 1 OF 4
ALLIANCE FUNDING
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 September 25, 1998, the Remittance date.
Due period ended: September 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
GROUP 2 SUB-POOL 3 SUB-POOL 4
------- ---------- ----------
COLLECTIONS
-----------
<S> <C> <C> <C> <C>
1 Total Actual Principal Collections 5,456,442.40 1,797,173.29 3,659,269.11
2 Total Actual Interest Collections 1,576,594.80 446,251.66 1,130,343.14
3 Service Fees Previously Remitted 99,144.27 28,034.32 71,109.95
4 Additional Proceeds 0.00 0.00 0.00
------------ ------------ ------------
5 TOTAL COLLECTIONS: 6,933,892.93 2,215,390.63 4,718,502.30
MONTHLY ADVANCES
----------------
6 Delinquent Interest Advance 33,029.17 (1,314.20) 34,343.37
7 Compensating Interest 25,646.93 9,161.80 16,485.13
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: 6,992,569.03 2,223,238.23 4,769,330.80
FEES
12 Service Fees 0.00 0.00 0.00
13 Expense Account Deposit: 4,440.14 1,228.80 3,211.34
------------ ------------ ------------
14 ADJUSTED REMITTANCE AMOUNT: 6,988,128.89 2,222,009.43 4,766,119.46
REMAINING AMOUNT AVAILABLE:
15 Adjusted Remittance Amount 6,988,128.89
16 Insured Payments due 0.00
17 Insurance Account Deposit @ 13 bp
the Ending Principal Balance 19,240.62
18 Cross Collateral Withdrawal 0.00
19 Class Remittance Amounts 6,968,888.27
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>
PAGE 2 OF 4
ALLIANCE FUNDING
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 September 25, 1998, the Remittance date.
Due period ended: September 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Group 2 Class 2A-1 Class 2A-2 Class R
------- ---------- ---------- -------
<S> <C> <C> <C> <C>
28 Loans Outstanding - BOM 1,665 558 1,107
29 Original Loan Balance 189,835,323.96 52,694,619.95 137,140,704.01
30 Initial Overcollaterization 6,772,236.65 1,745,410.83 5,026,825.82
31 Realized Losses, LTD 0.00 0.00 0.00
32 Carryforward Amount 0.00 0.00 0.00
------------------------------------------------------
33 Total Class Principal Balance 183,063,087.31 50,949,209.12 132,113,878.19
34 Pool Factor per Loan Balance 94.9176620% 26.3473100% 68.5703520%
35 Pool Factor per Class Balance 91.5315437% 25.4746046% 66.0569391%
36 Excess Spread 0.00 0.00
37 Principal Collection Factor 100.0000000% 32.9367225% 67.0632775%
38 Additional Principal due 590,950.21 194,639.63 396,310.58
39 Cross Collateral Withdrawal 0.00 0.00
40 Cross Collateral Deposit 0.00 0.00 0.00
41 Interest Remittance @ Pass-Through Rate 921,495.66 256,149.47 665,346.19
PRINCIPAL REDUCTIONS:
42 Prepayments - Number 38 16 22
43 Prepayments - Dollar 5,067,883.30 1,771,160.22 3,296,723.08
44 Delinquent Loans Repurchased - Number 0 0 0
45 Delinquent Loans Repurchased - Dollar 0.00 0.00 0.00
46 Net Liquidation Proceeds 169,053.60 0.00 169,053.60
47 Curtailments 129,262.76 0.00 129,262.76
48 Normal and Excess Payments 90,242.74 26,013.07 64,229.67
-------------------------------------------------------------------
49 Principal Remittance 5,456,442.40 1,797,173.29 3,659,269.11
-------------------------------------------------------------------
50 Total Principal Remittance 5,456,442.40 1,797,173.29 3,659,269.11
51 Additional Principal Reduction 590,950.21 194,639.63 396,310.58
-------------------------------------------------------------------
52 TOTAL REMITTANCE 6,968,888.27 2,247,962.39 4,720,925.88 0.00
===================================================================
53 Current Month Realized Loss - Number 1 0 1 1
54 Current Month Realized Loss - Dollar 904.10 0.00 904.10 904.10
CLASS PRINCIPAL BALANCE - EOM
55 Loans Outstanding - EOM 1626 542 1084
56 Closing Loan Balance 184,377,977.46 50,897,446.66 133,480,530.80
58 Additional Principal Reduction, LTD 7,363,186.86 1,940,050.46 5,423,136.40
59 Realized Losses, LTD 904.10 0.00 904.10
-------------------------------------------------------------------
60 Total Class Principal Balance 177,015,694.70 48,957,396.20 128,058,298.50
61 Pool Factor per Loan Balance 92.1889887% 25.4487233% 66.7402654%
62 Pool Factor per Class Balance 257.3119681% 24.4786981% 232.8332700%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PAGE 3 OF 4
ALLIANCE FUNDING
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 September 25, 1998, the Remittance date.
Due period ended: September 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
63 Weighted Note Rate - THIS Remittance 10.33024% 10.32511% 10.33221%
64 Weighted Note Rate - NEXT Remittance 10.35221% 10.33746% 10.35783%
65 Weighted Average Remaining Term 352.15 352.37 352.07
66 Accrual Period for Libor Rate 25-Aug-98 thru 24-Sep-98
67 Days in Related Period 31
68 Pass-Through Rate 5.83844% 5.84844%
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 1,745,410.83 194,639.63 1,940,050.46
75 Less: Realized Losses, LTD 0.00 0.00 0.00
--------------------------------------------------------------
76 Overcollateralization of Principal 1,745,410.83 194,639.63 1,940,050.46
=============================================================
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 5,026,825.82 396,310.58 5,423,136.40
80 Less: Realized Losses, LTD 0.00 904.10 904.10
--------------------------------------------------------------
81 Overcollateralization of Principal 5,026,825.82 395,406.48 5,422,232.30
=============================================================
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 0.00 904.10 904.10
86 Plus: Group 2 Cumulative Additional Proceeds 0.00 0.00 0.00
--------------------------------------------------------------
87 Current Group 2 Subordinated Amount 24,134,419.55 (904.10) 24,133,515.45
=============================================================
* Per Insurance Supplement
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PAGE 4 OF 4
ALLIANCE FUNDING
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 September 25, 1998, the Remittance date.
Due period ended: September 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
NONRECOVERABLE ADVANCE RECONCILIATION GROUP 2
-------
<S> <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
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS FACTORS GROUP 2 CLASS 1A-1 CLASS 1A-2
-------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
92 Total Class Principal - Original Pool 200,000,000.00 55,000,000.00 145,000,000.00
93 Interest Remittance Amount 921,495.66 256,149.47 665,346.19
94 Interest Rate Factor / 1000 4.607478 4.657263 4.588594
95 Total Principal Collections 5,456,442.40 1,797,173.29 3,659,269.11
96 Prefunding Account Excess 0.00 0.00 0.00
97 Additional Principal Reduction 590,950.21 194,639.63 396,310.58
-------------- ------------- --------------
98 Principal Remittance Amount 6,047,392.61 1,991,812.92 4,055,579.69
99 Principal Payment Factor/1000 30.236963 36.214780 27.969514
100 Current Month Ending Principal Factor 885.078474 890.134476 883.160685
101 Prior Month Ending Principal Factor 915.315437 926.349256 911.130199
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
