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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) December 28, 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 1998-2)
Superior Bank FSB
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(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 (Zip Code)
Executive Offices)
Registrant's telephone number, including area code (630) 916-4000
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<PAGE>
Item 5. Other Events
On December 28, 1998 (a "Remittance Date") a scheduled remittance was made
to the Certificateholders with respect to AFC Mortgage Loan Asset Backed
Certificates, Series 1998-2, issued pursuant to a Pooling and Servicing
Agreement, dated as of June 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 December, 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: December 28, 1998
<PAGE>
EXHIBITS INDEX
Exhibit No. Description
- ----------- -----------
21.1 Monthly Remittance Report for the month of December, 1998.
ALLIANCE FUNDING COMPANY
BY SUPERIOR BANK - FSB SERVICING DIVISION
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1998-2 GROUP 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS
OF JUNE 1, 1998 SUPERIOR BANK - FSB SERVICING DIVISION REPORTS
THE FOLLOWING INFORMATION PERTAINING TO SERIES 1998-2 GROUP 1
FOR DECEMBER 25, 1998, THE REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
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1 Total Actual Principal Collections 2,971,435.83
2 Total Actual Interest Collections 2,204,751.15
3 Less Service Fees Service Fees Previously Remitted 134,444.73
4 Additional Proceeds 0.00
----------------
5 Total Collections: 5,041,742.25
6 Pre-Funding Account Transfer 0.00
7 Interest Coverage Account Transfer 0.00
----------------
8 Aggregate Amount Received: 5,041,742.25
Monthly Advances
9 Interest Advance 69,835.34
10 Compensating Interest 10,742.53
11 Amounts Held for Future Distributions 0.00
12 Cross Collateral Deposit 0.00
13 Reserve Withdrawal per Sec. 6.14c 0.00
----------------
14 Available Remittance Amount: 5,122,320.12
15 Service Fees 0.00
16 Expense Account Deposit: 2,057.51
----------------
17 Adjusted Remittance Amount: 5,120,262.61
Remaining Amount Available:
18 Adjusted Remittance Amount 5,120,262.61
19 Insured Payments 0.00
20 Monthly Premium @ 12 bp
due Certificate Insurer 24,690.15
21 Cross Collateral Withdrawal 0.00
22 Class Remittance Amounts 5,095,572.46
23 Non-Recoverable Advances not
Previously Reimbursed 0.00
----------------
Total Remaining Amount Available: 0.00
================
Amount of Reimbursements Pursuant to Sec. 5.04
24 Servicing Fee 0.00
25 Monthly Advances and Servicer Advances 0.00
26 Other Mortgage Payments 0.00
27 Interest Earned on P&I Deposits 0.00
28 Additional Servicing Compensation 0.00
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Page 1 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
BY SUPERIOR BANK - FSB SERVICING DIVISION
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1998-2 GROUP 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS
OF JUNE 1, 1998 SUPERIOR BANK - FSB SERVICING DIVISION REPORTS
THE FOLLOWING INFORMATION PERTAINING TO SERIES 1998-2 GROUP 1
FOR DECEMBER 25, 1998, THE REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
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<TABLE>
<CAPTION>
TOTAL CLASS 1A CLASS R
----- -------- -------
<S> <C> <C> <C>
29 Loans Outstanding - BOM 3977
30 Original Loan Balance 257,363,436.52 257,363,436.52
31 Pre-Funding Account Balance 0.00 0.00
32 Initial Overcollateralization 7,490,522.44 7,490,522.44
33 Realized Losses, LTD 0.00 0.00
34 Carryforward Amount 0.00
35 Aggregate Unpaid Principal Balance
of Delinquent 0.00
Loans Repurchased per Sec. 5.11 0.00 0.00
----------------------------------------------------
36 Total Class Principal Balance 249,872,914.08 249,872,914.08
37 Pool Factor per Loan Balance 96.7531716% 96.7531716%
38 Pool Factor per Class Balance 93.9371857% 93.9371857%
39 Excess Spread 0.00 0.00
40 Cross Collateral Withdrawal 0.00 0.00
41 Cross Collateral Deposit 0.00 0.00
42 Additional Principal due Class A 923,377.76 923,377.76
43 Interest Remittance @ Pass-Through Rates 1,200,758.87 1,200,758.87
PRINCIPAL ADDITIONS:
44 Number of loans 0 0
45 Transfers from Pre-Funding Account 0.00 0.00
PRINCIPAL REDUCTIONS:
46 Class 1A-5 Lockout Remittance 0.00
47 Prepayments - Number 48 48
48 Prepayments - Dollar 2,521,244.27 2,521,244.27
49 Delinquent Loans Repurchased
- Number 0 0.00
50 Delinquent Loans Repurchased
- Dollar 0.00 0.00
51 Net Liquidation Proceeds 0.00 0.00
52 Curtailments 158,817.18 158,817.18
53 Normal and Excess Payments 291,374.38 291,374.38
54 Pre-Funding Account Transfer 0.00 0.00
----------------------------------------------------
55 Total Principal Remittance 2,971,435.83 2,971,435.83
56 Additional Principal Reduction 923,377.76 923,377.76
----------------------------------------------------
57 Total Remittance 5,095,572.46 5,095,572.46 0.00
====================================================
58 Current Month Realized Loss - Number 0 0
59 Current Month Realized Loss - Dollar 0.00 0.00
CLASS PRINCIPAL BALANCE - EOM
60 Loans Outstanding - EOM 3929
61 Closing Loan Balance 254,392,000.69 254,392,000.69
62 Pre-Funding Account Balance 0.00 0.00
63 Additional Principal Reduction, LTD 8,413,900.20 8,413,900.20
64 Realized losses, LTD 0.00 0.00
65 Aggregate Unpaid Principal Balance
of Delinquent
66 Loans Repurchased per Sec. 5.11 0.00 0.00
----------------------------------------------------
67 Total Class Principal Balance 245,978,100.49 245,978,100.49
68 Pool Factor per Loan Balance 95.6360905% 95.6360905%
69 Pool Factor per Class Balance 92.4729701% 92.4729701%
</TABLE>
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Page 2 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
BY SUPERIOR BANK - FSB SERVICING DIVISION
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1998-2 GROUP 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS
OF JUNE 1, 1998 SUPERIOR BANK - FSB SERVICING DIVISION REPORTS
THE FOLLOWING INFORMATION PERTAINING TO SERIES 1998-2 GROUP 1
FOR DECEMBER 25, 1998, THE REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
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<TABLE>
<CAPTION>
TOTAL CLASS A-1
----- ---------
<S> <C> <C> <C>
70 Weighted Note Rate - THIS Remittance 10.67909%
71 Weighted Note Rate - NEXT Remittance 10.67363%
72 Related Remittance Period for Libor Rate 25-Nov-98 thru 27-Dec-98
73 Days in Related Period 33
74 Pass-Through Rates 5.24234%
75 Weighted Average Remaining Term 235.53
76 Original Pool - Principal Balance 168,503,688.56 168,503,688.56
77 Original Pool - Pre-Funding Account 100,454,855.42 100,454,855.42
78 Original Pool - Additional Principal
Reduction 2,958,543.98 2,958,543.98
----------------------------------------------------
79 Original Pool Total 266,000,000.00 266,000,000.00
80 Original Pool - Number of Loans 2573
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<CAPTION>
CLASS A OVERCOLLATERALIZATION RECONCILIATION
Beg.of Month Current Month End of Month
------------------------------------------------
<S> <C> <C> <C>
81 Additional Principal Reduction, LTD 7,490,522.44 923,377.76 8,413,900.20
82 Cross Collateral Deposits 0.00 0.00 0.00
83 Less: Realized Losses, LTD 0.00 0.00 0.00
------------------------------------------------
84 Overcollateralization of Principal 7,490,522.44 923,377.76 8,413,900.20
================================================
85 Base Overcollateralization Required 16,675,429.73
86 Required Overcollateralization Amount 16,675,429.73
<CAPTION>
CURRENT MONTH SUBORDINATED AMOUNT Beg.of Month Current Month End of Month
------------------------------------------------
<S> <C> <C> <C>
87 Original Subordinated Amount 32,812,942.37 N/A 32,812,942.37
88 Less: Cumulative Realized Losses 0.00 0.00 0.00
89 Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
------------------------------------------------
90 Current Subordinated Amount 32,812,942.37 32,812,942.37
================================================
NONRECOVERABLE ADVANCE RECONCILIATION
91 Beginning of Month 0.00
92 Current Month Unpaid Nonrecoverable Advance 0.00
93 Less: Current Month Reimbursement 0.00
---------------
94 End of Month 0.00
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</TABLE>
Page 3 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
BY SUPERIOR BANK - FSB SERVICING DIVISION
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1998-2 GROUP 1
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS
OF JUNE 1, 1998 SUPERIOR BANK - FSB SERVICING DIVISION REPORTS
THE FOLLOWING INFORMATION PERTAINING TO SERIES 1998-2 GROUP 1
FOR DECEMBER 25, 1998, THE REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
- --------------------------------------------------------------------------------
CLASS
TOTAL A1
-----------------------------------
95 Total Class Principal - Original Pool $266,000,000.00 $266,000,000.00
96 Interest Remittance Amount 1,200,758.87 1,200,758.87
97 Interest Rate Factor / 1000 4.514131 4.514131
98 Total Principal Collections 2,971,435.83 2,971,435.83
99 Prefunding Account Transfer 0.00 0.00
100 Additional Principal Reduction 923,377.76 923,377.76
-----------------------------------
101 Principal Remittance Amount 3,894,813.59 3,894,813.59
102 Principal Payment Factor/1000 14.642156 14.642156
103 Principal Factor 924.729700 924.729700
104 Prior Month Principal Factor 939.371856 939.371856
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Page 4 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
BY SUPERIOR BANK - FSB SERVICING DIVISION
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1998-2 GROUP 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS
OF JUNE 25, 1998 SUPERIOR BANK - FSB SERVICING DIVISION REPORTS
THE FOLLOWING INFORMATION PERTAINING TO SERIES 1998-2 GROUP 2
FOR DECEMBER 28, 1998, THE REMITTANCE DATE.
DUE PERIOD ENDED: DECEMBER 1, 1998
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1 Total Actual Principal Collections 3,503,179.45
2 Total Actual Interest Collections 1,494,460.01
3 Less: Service Fees Previously Remitted 95,046.20
4 Additional Proceeds 0.00
----------------
5 Total Collections: 4,902,593.26
6 Pre-Funding Account Transfer 0.00
7 Interest Coverage Account Transfer 0.00
----------------
8 Aggregate Amount Received: 4,902,593.26
Monthly Advance
9 Interest Advance 138,986.92
10 Compensating Interest 14,186.49
11 Amounts Held for Future Distributions 0.00
12 Reserve Withdrawal Per Sec. 6.08 VII 0.00
----------------
13 Available Remittance Amount: 5,055,766.67
14 Less: Service Fees 0.00
15 Less: Expense Account Deposit 1,522.62
16 Cross Collateral Deposit 0.00
----------------
17 Adjusted Remittance Amount: 5,054,244.05
Remaining Amount Available:
18 Adjusted Remittance Amount 5,054,244.05
19 Insured Payments 0.00
20 Monthly Premium @ 12 bp
due Certificate Insurer 18,271.41
21 Class Remittance Amounts 5,035,972.64
22 Cross Collateral Withdrawal 0.00
23 Non-Recoverable Advances not
Previously Reimbursed 0.00
----------------
24 Total Remaining Amount Available: 0.00
================
Amount of Reimbursements Pursuant to Sec. 5.04
25 Servicing Fee 0.00
26 Monthly Advances and Servicer Advances 0.00
27 Other Mortgage Payments 0.00
28 Interest Earned on P&I Deposits 0.00
29 Additional Servicing Compensation 0.00
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Page 1 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
BY SUPERIOR BANK - FSB SERVICING DIVISION
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1998-2 GROUP 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS
OF JUNE 25, 1998 SUPERIOR BANK - FSB SERVICING DIVISION REPORTS
THE FOLLOWING INFORMATION PERTAINING TO SERIES 1998-2 GROUP 2
FOR DECEMBER 28, 1998, THE REMITTANCE DATE.
PERIOD ENDED: DECEMBER 1, 1998
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<TABLE>
<CAPTION>
TOTAL CLASS 2-A CLASS R
----- --------- -------
<S> <C> <C> <C>
30 Number of Loans 1766
31 Original Principal Balance 193,657,012.22 193,657,012.22
32 Original Pre-Funding Account Balance 0.00 0.00
33 Initial Overcollateralization 7,439,746.01 7,439,746.01
34 Realized Losses, LTD 0.00 0.00
35 Carryforward Amount 0.00 0.00
36 Aggregate Unpaid Principal Balance of Delinquent
Loans Repurchased per Sec. 5.11 0.00 0.00
--------------------------------------------------------
37 Opening Class Principal Balance 186,217,266.21 186,217,266.21
38 Pool Factor per Loan Balance 97.3150815% 97.3150815%
39 Pool Factor per Class Balance 100.0000000% 100.0000000%
40 Excess Spread 0.00 0.00
41 Additional Principal due Class A 646,465.11 646,465.11
42 Cross Collateral Deposit 0.00 0.00
43 Cross Collateral Withdrawal 0.00 0.00
44 Interest Remittance 886,328.08 886,328.08
45 Available Funds Cap Carry Forward 0.00 0.00
Distribution (see schedule C)
PRINCIPAL ADDITIONS:
46 Number of Loans 0
47 Transfers from Pre-Funding Account 0.00 0.00
PRINCIPAL REDUCTIONS:
48 Prepayments - Number 32 32
49 Prepayments - Dollar 3,413,589.25 3,413,589.25
50 Delinquent Loans Repurchased - Number 0 0
51 Delinquent Loans Repurchased - Dollar 0.00 0.00
52 Net Liquidation Proceeds 0.00 0.00
53 Curtailments 0.00 0.00
54 Normal and Excess Payments 89,590.20 89,590.20
55 Pre-Funding Account Transfer 0.00 0.00
--------------------------------------------------------
56 Total Principal Remittance 3,503,179.45 3,503,179.45
57 Additional Principal Reduction 646,465.11 646,465.11
--------------------------------------------------------
58 Total Remittance 5,035,972.64 5,035,972.64 0.00
========================================================
59 Carryforward Amount 0.00
60 Current Month Realized Loss - Number 0 0
61 Current Month Realized Loss - Dollar 0.00 0.00
CLASS PRINCIPAL BALANCE - EOM
62 Number of Loans # 1734
63 Closing Loan Balance 190,153,832.77 190,153,832.77
64 Pre-Funding Account Balance 0.00 0.00
65 Additional Principal Reduction, LTD 8,086,211.12 8,086,211.12
66 Realized Losses, LTD 0.00 0.00
67 Carryforward Amount 0.00 0.00
68 Aggregate Unpaid Principal Balance of Delinquent
Loans Repurchased per Sec. 5.11 0.00 0.00
------------------------------------
69 Closing Class Principal Balance 182,067,621.65 182,067,621.65
70 Pool Factor per Loan Balance 95.5546898% 95.5546898%
71 Pool Factor per Class Balance 91.4912672% 91.4912672%
</TABLE>
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Page 2 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
BY SUPERIOR BANK - FSB SERVICING DIVISION
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1998-2 GROUP 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS
OF JUNE 25, 1998 SUPERIOR BANK - FSB SERVICING DIVISION REPORTS
THE FOLLOWING INFORMATION PERTAINING TO SERIES 1998-2 GROUP 2
FOR DECEMBER 28, 1998, THE REMITTANCE DATE.
PERIOD ENDED: DECEMBER 1, 1998
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<TABLE>
<CAPTION>
TOTAL CLASS A1
----- --------
<S> <C> <C> <C>
72 Weighted Note Rate - This Remittance: 10.26682%
73 Weighted Note Rate - Next Remittance: 10.26478%
74 Available Cap Carry Foward Amount - This Remittance: 0.00
(see schedule C)
75 Pass-Through Rate: 5.19234% 5.19234%
76 Related Remittance Period: 25-Nov-98 thru 27-Dec-98
77 Days in Related Period: 33
78 Weighted Average Remaining Term 352.02
79 Original Pool - Principal Balance 124,023,590.83 124,023,590.83
80 Original Pool - Pre-Funding Account Balance 79,228,918.11 79,228,918.11
81 Original Pool - Initial Overcollateralization 4,252,508.94 4,252,508.94
------------------------------------
82 Original Pool - Class Principal Balance 199,000,000.00 199,000,000.00
83 Original Pool - Number of Loans 1135
- --------------------------------------------------------------------------------
<CAPTION>
CLASS A OVERCOLLATERALIZATION RECONCILIATION
Beginning of Month Current Month End of Month
--------------------------------------------------
<S> <C> <C> <C>
84 Initial Overcollateralization 7,439,746.01 646,465.11 8,086,211.12
85 Cross Collateral Deposits, LTD 0.00 0.00 0.00
86 Less: Realized Losses, LTD 0.00 0.00 0.00
--------------------------------------------------
87 Overcollateralization of Principal 7,439,746.01 646,465.11 8,086,211.12
==================================================
88 Base Overcollateralization Requirement 12,195,150.54
89 Required Overcollateralization 12,195,150.54
<CAPTION>
CURRENT MONTH SUBORDINATED AMOUNT Beginning of Month Current Month End of Month
--------------------------------------------------
<S> <C> <C> <C>
90 Original Subordinated Amount 26,422,826.16 N/A 26,422,826.16
91 Less: Cumulative Realized Losses 0.00 0.00 0.00
92 Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
--------------------------------------------------
93 Current Subordinated Amount 26,422,826.16 26,422,826.16
==================================================
NONRECOVERABLE ADVANCE RECONCILIATION
94 Beginning of Month 0.00
95 Current Month Nonrecoverable Advance 0.00
96 Less: Current Month Reimbursment 0.00
----------------
97 End of Month 0.00
================
- --------------------------------------------------------------------------------
</TABLE>
Page 3 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
BY SUPERIOR BANK - FSB SERVICING DIVISION
DESIGNATED SERVICER
SERVICER'S CERTIFICATE
1998-2 GROUP 2
IN ACCORDANCE WITH SECTION 6.08 OF THE POOLING AND SERVICING AGREEMENT DATED AS
OF JUNE 25, 1998 SUPERIOR BANK - FSB SERVICING DIVISION REPORTS
THE FOLLOWING INFORMATION PERTAINING TO SERIES 1998-2 GROUP 2
FOR DECEMBER 28, 1998, THE REMITTANCE DATE.
PERIOD ENDED: DECEMBER 1, 1998
- --------------------------------------------------------------------------------
CLASS
A1
--------------------------------
98 Total Class Principal - Original Pool ############## ##############
99 Interest Remittance Amount 886,328.08 886,328.08
100 Interest Rate Factor / 1000 4.453910 4.453910
101 Total Principal Collections 3,503,179.45 3,503,179.45
102 Prefunding Account Transfer 0.00 0.00
103 Additional Principal Reduction 646,465.11 646,465.11
--------------------------------
104 Principal Remittance Amount 4,149,644.56 4,149,644.56
105 Principal Payment Factor/1000 20.852485 20.852485
106 Principal Factor 914.912672 914.912672
107 Prior Month Principal Factor 935.765157 935.765157
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Page 4 of 4
