- -------------------------------------------------------------------------------
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 26, 1997
SUPERIOR BANK FSB (as depositor under the Pooling and Servicing Agreement, dated
as of September 1, 1997, providing for the issuance of AFC Mortgage Loan Asset
Backed Certificates, Series 1997-3)
SUPERIOR BANK FSB
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
UNITED STATES 333-21485 36-1414142
- ---------------------------- ------------ ----------------------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification Number)
ONE LINCOLN CENTRE
OAKBROOK TERRACE, ILLINOIS 60181
- -------------------------- ----------
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code (708) 916-4000
--------------
- -------------------------------------------------------------------------------
<PAGE>
Item 5. Other Events
------------
On December 26, 1997 (a "Remittance Date") a scheduled remittance was made
to the Certificateholders with respect to AFC Mortgage Loan Asset Backed
Certificates, Series 1997-3, issued pursuant to a Pooling and Servicing
Agreement, dated as of September 1, 1997, among Superior Bank FSB., as
Depositor, Lee Servicing Company, a division of Superior Bank FSB., as Servicer
and LaSalle National Bank, as Trustee. The information contained in the
Servicer's Monthly Remittance Report to the Trustee, which shall be forwarded by
the Trustee to the Certificateholders, is attached hereto as Exhibit 21.1 and is
incorporated herein by reference.
Capitalized terms used herein and not defined shall have the same meanings
ascribed to them in the pooling and Servicing Agreement.
Items 2 through 4 and Items 6 and 8 are not included because they are not
applicable.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Not applicable
(b) Not applicable
(c) Exhibits
21.1 Monthly Remittance Report for the month of December, 1997.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SUPERIOR BANK F.S.B.
By: /s/ WILLIAM C. BRACKEN
---------------------------
Name: William C. Bracken
Title: Executive Vice President
Dated: December, 1997
<PAGE>
EXHIBITS TABLE
21.1 Monthly Remittance Report for the month of December, 1997.
ALLIANCE FUNDING
by SUPERIOR BANK FSB -- SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1997-3 Sub-Pool 1
In accordance with section 6.08 of the Pooling and
Servicing Agreement dated as of September 1, 1997
Superior Bank FSB -- Servicing Division reports the following
information pertaining to Series 1997-3 Sub-Pool 1
for December 26, 1997, the Remittance date.
Due period ended: December 1, 1997
- --------------------------------------------------------------------------------
1 Total Actual Principal Collections 1,174,470.47
2 Total Actual Interest Collections 1,033,880.17
3 Less Service Fees Service Fees Previously Remitted 6,435.54
4 Additional Proceeds 0.00
------------
5 Total Collections: 2,201,915.10
MONTHLY ADVANCES
6 Interest Advance 107,817.18
7 Compensating Interest 5,080.33
8 Amounts Held for Future Distributions 0.00
9 Cross Collateral Deposit 0.00
10 Reserve Withdrawal per Sec. 6.14c 0.00
------------
11 Available Remittance Amount: 2,314,812.61
12 Service Fees 51,965.92
13 Expense Account Deposit: 2,927.69
------------
14 Adjusted Remittance Amount: 2,259,919.00
REMAINING AMOUNT AVAILABLE:
15 Adjusted Remittance Amount 2,259,919.00
16 Insured Payments 0.00
17 Insurance Account Deposit @ 13 bp
the Ending Principal Balance 12,686.67
18 Cross Collateral Withdrawal 0.00
19 Class Remittance Amounts 2,247,232.33
20 Non-Recoverable Advances not
Previously Reimbursed 0.00
------------
Total Remaining Amount Available: 0.00
============
Amount of Reimbursements Pursuant to Sec. 5.04
21 Servicing Fee 0.00
22 Monthly Advances and Servicer Advances 0.00
23 Other Mortgage Payments 0.00
24 Interest Earned on P&I Deposits 0.00
25 Additional Servicing Compensation 0.00
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Page 1 of 4
<PAGE>
<TABLE>
ALLIANCE FUNDING
by SUPERIOR BANK FSB -- SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1997-3 Sub-Pool 1
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1997
Superior Bank FSB -- Servicing Division reports the following
information pertaining to Series 1997-3 Sub-Pool 1 for December 26, 1997, the Remittance date.
Due period ended: December 1, 1997
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Total Class A-1 Class A-2 Class A-3
-------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
26 Loans Outstanding -- BOM 2108
27 Original Loan Balance 120,302,125.60 33,954,176.53 30,792,452.18 12,115,063.15
28 Pre-Funding Account Balance 0.00 0.00 0.00 0.00
29 Initial Overcollateralization 2,019,902.88 1,199,595.31 292,529.03 115,093.39
30 Realized Losses, LTD 0.00 0.00 0.00 0.00
31 Carryforward Amount
32 Aggregate Unpaid Principal Balance of Delinquent 0.00 0.00 0.00 0.00
Loans Repurchased per Sec. 5.11 0.00 0.00 0.00 0.00
-------------- ------------- ------------- -------------
33 Total Class Principal Balance 118,282,222.72 32,754,581.22 30,499,923.15 11,999,969.76
34 Pool Factor per Loan Balance 99.8127143% 28.1712273% 25.5479961% 10.0516706%
35 Pool Factor per Class Balance 98.1368338% 93.5845178% 99.9997480% 99.9997480%
36 Excess Spread 0.00
37 Cross Collateral Withdrawal 0.00
38 Cross Collateral Deposit 0.00 0.00
39 Additional Principal due Class A 424,117.64 424,117.64
40 Interest Remittance @ Pass-Through Rates 648,644.22 162,956.32 168,257.91 66,899.83
PRINCIPAL REDUCTIONS:
41 Class 1A-5 Lockout Remittance 0.00
42 Prepayments -- Number 17 17
43 Prepayments -- Dollar 1,059,770.13 1,059,770.13 0.00 0.00
44 Delinquent Loans Repurchased -- Number 0 0.00
45 Delinquent Loans Repurchased -- Dollar 0.00 0.00 0.00 0.00
46 Net Liquidation Proceeds 0.00 0.00 0.00 0.00
47 Curtailments 0.00 0.00 0.00 0.00
48 Normal and Excess Payments 114,700.34 114,700.34 0.00 0.00
-------------- ------------- ------------- -------------
49 Principal Remittance 1,174,470.47
50 Pre-Funding Account Transfer 0.00 0.00 0.00 0.00
-------------- ------------- ------------- -------------
51 Total Principal Remittance 1,174,470.47 1,174,470.47 0.00 0.00
52 Additional Principal Reduction 424,117.64 424,117.64 0.00 0.00
-------------- ------------- ------------- -------------
53 Total Remittance 2,247,232.33 1,761,544.43 168,257.91 66,899.83
============== ============= ============= =============
54 Current Month Realized Loss -- Number 0
55 Current Month Realized Loss -- Dollar 0.00
CLASS PRINCIPAL BALANCE -- EOM
56 Loans Outstanding - EOM 2091
57 Closing Loan Balance 119,127,655.13 32,779,706.06 30,792,452.18 12,115,063.15
58 Pre-Funding Account Balance 0.00 0.00 0.00 0.00
59 Additional Principal Reduction, LTD 2,444,020.53 1,623,712.96 292,529.03 115,093.39
60 Realized losses, LTD 0.00 0.00 0.00 0.00
61 Aggregate Unpaid Principal Balance of Delinquent
62 Loans Repurchased per Sec. 5.11 0.00 0.00 0.00 0.00
-------------- ------------- ------------- -------------
63 Total Class Principal Balance 116,683,634.60 31,155,993.11 30,499,923.15 11,999,969.76
64 Pool Factor per Loan Balance 98.8382754% 27.1967883% 25.5479961% 10.0516706%
65 Pool Factor per Class Balance 96.8105113% 89.0171232% 99.9997480% 99.9997480%
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
Class A4 Class A-5 Class R
------------- ------------- -------------
<S> <C> <C> <C>
26 Loans Outstanding -- BOM
27 Original Loan Balance 22,239,073.22 21,201,360.52
28 Pre-Funding Account Balance 0.00 0.00
29 Initial Overcollateralization 211,271.72 201,413.43
30 Realized Losses, LTD 0.00 0.00
31 Carryforward Amount
32 Aggregate Unpaid Principal Balance of Delinquent 0.00 0.00
Loans Repurchased per Sec. 5.11 0.00 0.00
------------- -------------
33 Total Class Principal Balance 22,027,801.50 20,999,947.09
34 Pool Factor per Loan Balance 18.4513969% 17.5904235%
35 Pool Factor per Class Balance 99.9997480% 99.9997480%
36 Excess Spread 0.00
37 Cross Collateral Withdrawal 0.00
38 Cross Collateral Deposit
39 Additional Principal due Class A
40 Interest Remittance @ Pass-Through Rates 129,780.46 120,749.70
PRINCIPAL REDUCTIONS:
41 Class 1A-5 Lockout Remittance
42 Prepayments -- Number
43 Prepayments -- Dollar 0.00 0.00
44 Delinquent Loans Repurchased -- Number
45 Delinquent Loans Repurchased -- Dollar 0.00 0.00
46 Net Liquidation Proceeds 0.00 0.00
47 Curtailments 0.00 0.00
48 Normal and Excess Payments 0.00 0.00
------------- -------------
49 Principal Remittance
50 Pre-Funding Account Transfer 0.00 0.00
------------- -------------
51 Total Principal Remittance 0.00 0.00
52 Additional Principal Reduction 0.00 0.00
------------- ------------- ----
53 Total Remittance 129,780.46 120,749.70 0.00
============= ============= ====
54 Current Month Realized Loss -- Number 0
55 Current Month Realized Loss -- Dollar 0.00
CLASS PRINCIPAL BALANCE -- EOM
56 Loans Outstanding - EOM
57 Closing Loan Balance 22,239,073.22 21,201,360.52
58 Pre-Funding Account Balance 0.00 0.00
59 Additional Principal Reduction, LTD 211,271.72 201,413.43
60 Realized losses, LTD 0.00 0.00
61 Aggregate Unpaid Principal Balance of Delinquent
62 Loans Repurchased per Sec. 5.11 0.00 0.00
------------- -------------
63 Total Class Principal Balance 22,027,801.50 20,999,947.09
64 Pool Factor per Loan Balance 18.4513969% 17.5904235%
65 Pool Factor per Class Balance 99.9997480% 99.9997480%
- --------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2 of 4
<PAGE>
<TABLE>
ALLIANCE FUNDING
by SUPERIOR BANK FSB -- SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1997-3 Sub-Pool 1
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1997
Superior Bank FSB -- Servicing Division reports the following
information pertaining to Series 1997-3 Sub-Pool 1 for December 26, 1997, the Remittance date.
Due period ended: December 1, 1997
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Total Class A-1 Class A-2
-------------- ------------- -------------
<S> <C> <C> <C>
66 Weighted Note Rate -- THIS Remittance 11.50694%
67 Weighted Note Rate -- NEXT Remittance 11.50300%
68 Related Remittance Period for Libor Rate 25-Nov-97 thru 25-Dec-97
69 Days in Related Period 31
70 Pass-Through Rates 5.77750% 6.62%
71 Weighted Average Remaining Term 222.23
72 Original Pool -- Principal Balance 75,270,504.81 21,857,749.18 19,047,467.15
73 Original Pool -- Pre-Funding Account 46,413,348.80 13,477,939.86 11,745,061.88
74 Original Pool -- Additional Principal Reduction 1,155,996.61 335,689.04 292,529.03
-------------- ------------- -------------
75 Original Pool Total 120,527,857.00 35,000,000.00 30,500,000.00
76 Original Pool -- Number of Loans 1306
- ----------------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Class A-3 Class A4 Class A-5
------------- ------------- -------------
<S> <C> <C> <C>
66 Weighted Note Rate -- THIS Remittance
67 Weighted Note Rate -- NEXT Remittance
68 Related Remittance Period for Libor Rate
69 Days in Related Period
70 Pass-Through Rates 6.69% 7.07% 6.90%
71 Weighted Average Remaining Term
72 Original Pool -- Principal Balance 7,494,085.44 13,756,553.52 13,114,649.52
73 Original Pool -- Pre-Funding Account 4,621,007.95 8,482,575.20 8,086,763.91
74 Original Pool -- Additional Principal Reduction 115,093.39 211,271.72 201,413.43
------------- ------------- -------------
75 Original Pool Total 12,000,000.00 22,027,857.00 21,000,000.00
76 Original Pool -- Number of Loans
- ----------------------------------------------------------------------------------------------------------------
<CAPTION>
Class A Overcollateralization Reconciliation Beg. of Month Current Month End of Month
-------------------------------------------- -------------- ------------- -------------
<S> <C> <C> <C>
77 Additional Principal Reduction, LTD 2,019,902.88 424,117.64 2,444,020.53
78 Cross Collateral Deposits 0.00 0.00 0.00
79 Less: Realized Losses, LTD 0.00 0.00 0.00
-------------- ------------- -------------
80 Overcollateralization of Principal 2,019,902.88 424,117.64 2,444,020.53
============== ============= =============
81 Base Overcollateralization Required 8,207,853.68
82 Required Overcollateralization Amount 8,207,853.68
Current Month Subordinated Amount Beg. of Month Current Month End of Month
--------------------------------- ------------- ------------- -------------
83 Original Subordinated Amount 16,889,677.00 N/A 16,889,677.00
84 Less: Cumulative Realized Losses 0.00 0.00 0.00
85 Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
-------------- ------------- -------------
86 Current Subordinated Amount 16,889,677.00 16,889,677.00
============== ============= =============
Nonrecoverable Advance Reconciliation
-------------------------------------
87 Beginning of Month 0.00
88 Current Month Unpaid Nonrecoverable Advance 0.00
89 Less: Current Month Reimbursement 0.00
-------------
90 End of Month 0.00
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3 of 4
<PAGE>
<TABLE>
ALLIANCE FUNDING
by SUPERIOR BANK FSB -- SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1997-3 Sub-Pool 1
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1997
Superior Bank FSB -- Servicing Division reports the following
information pertaining to Series 1997-3 Sub-Pool 1 for December 26, 1997, the Remittance date.
Due period ended: December 1, 1997
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
Total Class A1 Class A2
--------------- -------------- --------------
<S> <C> <C> <C>
91 Total Class Principal -- Original Pool $120,527,857.00 $35,000,000.00 $30,500,000.00
92 Interest Remittance Amount 648,644.22 162,956.32 168,257.91
93 Interest Rate Factor/1000 5.381695 4.655895 5.516653
94 Total Principal Collections 1,174,470.47 1,174,470.47 0.00
95 Prefunding Account Transfer 0.00 0.00 0.00
96 Additional Principal Reduction 424,117.64 424,117.64 0.00
--------------- -------------- --------------
97 Principal Remittance Amount 1,598,588.11 1,598,588.11 0.00
98 Principal Payment Factor/1000 13.263225 45.673946 0.000000
99 Principal Factor 968.105113 890.171231 999.997480
100 Prior Month Principal Factor 981.368338 935.845177 999.997480
- -----------------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
Class A3 Class A4 Class A5
-------------- -------------- --------------
<S> <C> <C> <C>
91 Total Class Principal -- Original Pool $12,000,000.00 $22,027,857.00 $21,000,000.00
92 Interest Remittance Amount 66,899.83 129,780.46 120,749.70
93 Interest Rate Factor/1000 5.574986 5.891652 5.749986
94 Total Principal Collections 0.00 0.00 0.00
95 Prefunding Account Transfer 0.00 0.00 0.00
96 Additional Principal Reduction 0.00 0.00 0.00
-------------- -------------- --------------
97 Principal Remittance Amount 0.00 0.00 0.00
98 Principal Payment Factor/1000 0.000000 0.000000 0.000000
99 Principal Factor 999.997480 999.997480 999.997480
100 Prior Month Principal Factor 999.997480 999.997480 999.997480
- -----------------------------------------------------------------------------------------------------------
</TABLE>
Page 4 of 4
<PAGE>
ALLIANCE FUNDING
by SUPERIOR BANK FSB -- SERVICING DIVISION
Designated Servicer
SERVICERS CERTIFICATE
1997-3 SUB POOL 2
In accordance with section 6.08 of the Pooling and
Servicing Agreement dated as of September 01, 1997
and the Insurance Agreement dated as of September 25, 1997,
Superior Bank FSB -- Servicing Division reports the following
information pertaining to series 1997-3 Sub Pool 2
for December 26, 1997, the Remittance date.
Period Ended: December 1, 1997
- --------------------------------------------------------------------------------
1 Total Actual Principal Collections 3,270,337.41
2 Total Actual Interest Collections 1,240,044.43
3 Less: Service Fees Previously Remitted 9,302.79
4 Additional Proceeds 0.00
------------
5 Total Collections: 4,501,079.05
MONTHLY ADVANCE
9 Interest Advance 287,722.66
10 Compensating Interest 10,750.73
11 Amounts Held for Future Distributions 0.00
12 Reserve Withdrawal Per Sec. 6.08 VII 0.00
------------
13 Available Remittance Amount: 4,799,552.44
14 Less: Service Fees 69,373.09
15 Less: Expense Account Deposit 4,304.95
16 Cross Collateral Deposit 0.00
------------
17 Adjusted Remittance Amount: 4,725,874.40
REMAINING AMOUNT AVAILABLE:
18 Adjusted Remittance Amount 4,725,874.40
19 Insured Payments 0.00
20 Insurance Account Deposit @ 13bp
the Ending Class Principal Balance 18,654.78
21 Class Remittance Amounts 4,707,219.62
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
- --------------------------------------------------------------------------------
Page 1 of 4
<PAGE>
<TABLE>
ALLIANCE FUNDING
by SUPERIOR BANK FSB -- SERVICING DIVISION
Designated Servicer
SERVICERS CERTIFICATE
1997-3 SUB POOL 2
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 01, 1997
and the Insurance Agreement dated as of September 25, 1997,
Superior Bank FSB -- Servicing Division reports the following
information pertaining to series 1997-3 Sub Pool 2 for December 26, 1997, the Remittance date.
Period Ended: December 1, 1997
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Total Class 2-A Class R
-------------- -------------- --------------
<S> <C> <C> <C>
30 Number of Loans 1564
31 Original Principal Balance 182,392,491.24 182,392,491.24
33 Initial Overcollateralization 6,924,189.91 6,924,189.91
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 175,468,301.33 175,468,301.33
38 Pool Factor per Loan Balance 101.6271875% 101.6271875%
39 Pool Factor per Class Balance 100.0000000% 100.0000000%
40 Excess Spread 0.00 0.00
41 Additional Principal due Class A 547,294.48 547,294.48
42 Cross Collateral Deposit 0.00 0.00
43 Cross Collateral Withdrawal 0.00 0.00
44 Interest Remittance 889,587.73 889,587.73
45 Available Funds Cap Carry Forward 0.00 0.00
Distribution (see schedule C)
PRINCIPAL REDUCTIONS:
48 Prepayments -- Number 25 25
49 Prepayments -- Dollar 3,178,188.39 3,178,188.39
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 92,149.02 92,149.02
-------------- --------------
55 Principal Remittance 3,270,337.41
56 Pre-Funding Account Transfer 0.00 0.00
-------------- --------------
57 Total Principal Remittance 3,270,337.41 3,270,337.41
58 Additional Principal Reduction 547,294.48 547,294.48
-------------- -------------- ----
59 Total Remittance 4,707,219.62 4,707,219.62 0.00
============== ============== ====
60 Carryforward Amount 0.00
61 Current Month Realized Loss -- Number 0 0
62 Current Month Realized Loss -- Dollar 0.00 0.00
CLASS PRINCIPAL BALANCE -- EOM
63 Number of Loans # 1539
64 Closing Loan Balance 179,122,153.83 179,122,153.83
66 Additional Principal Reduction, LTD 7,471,484.39 7,471,484.39
67 Realized Losses, LTD 0.00 0.00
68 Carryforward Amount 0.00 0.00
69 Aggregate Unpaid Principal Balance of Delinquent
Loans Repurchased per Sec. 5.11 0.00 0.00
-------------- --------------
70 Closing Class Principal Balance 171,650,669.44 171,650,669.44
71 Pool Factor per Loan Balance 99.8049897% 99.8049897%
72 Pool Factor per Class Balance 95.6419568% 95.6419568%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2 of 4
<PAGE>
<TABLE>
ALLIANCE FUNDING
by SUPERIOR BANK FSB -- SERVICING DIVISION
Designated Servicer
SERVICERS CERTIFICATE
1997-3 SUB POOL 2
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 01, 1997
and the Insurance Agreement dated as of September 25, 1997,
Superior Bank FSB -- Servicing Division reports the following
information pertaining to series 1997-3 Sub Pool 2 for December 26, 1997, the Remittance date.
Period Ended: December 1, 1997
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Total Class A1
-------------- -------------- --------------
<S> <C> <C> <C>
73 Weighted Note Rate -- This Remittance: 10.24493%
74 Weighted Note Rate -- Next Remittance: 10.26744%
75 Available Cap Carry Foward Amount -- This Remittance: 0.00
(see schedule C)
76 Pass-Through Rate: 5.88750% 5.88750%
77 Related Remittance Period: 25-Nov-97 thru 25-Dec-97
78 Days in Related Period: 31
79 Weighted Average Remaining Term 350.99
80 Original Pool -- Principal Balance 115,690,188.57 115,690,188.57
81 Original Pool -- Pre-Funding Account Balance 69,619,200.17 69,619,200.17
82 Original Pool -- Initial Overcollateralization 5,837,245.74 5,837,245.74
83 Original Pool -- Class Principal Balance 179,472,143.00 179,472,143.00
-------------- --------------
84 Original Pool -- Number of Loans 455
- ------------------------------------------------------------------------------------------------------------------------
CLASS A OVERCOLLATERALIZATION RECONCILIATION Beginning of Month Current Month End of Month
-------------------------------------------- ------------------ -------------- --------------
<S> <C> <C> <C>
85 Initial Overcollateralization 6,924,189.91 547,294.48 7,471,484.39
86 Cross Collateral Deposits, LTD 0.00 0.00 0.00
87 Less: Realized Losses, LTD 0.00 0.00 0.00
------------- ---------- -------------
88 Overcollateralization of Principal 6,924,189.91 547,294.48 7,471,484.39
============= ========== =============
89 Base Overcollateralization Requirement 9,289,441.80
90 Required Overcollateralization 9,289,441.80
CURRENT MONTH SUBORDINATED AMOUNT Beginning of Month Current Month End of Month
--------------------------------- ------------------ -------------- --------------
<S> <C> <C> <C>
91 Original Subordinated Amount 21,241,543.00 N/A 21,241,543.00
92 Less: Cumulative Realized Losses 0.00 0.00 0.00
93 Plus: Cumulative Additional Proceeds 0.00 0.00 0.00
------------- -------------
94 Current Subordinated Amount 21,241,543.00 21,241,543.00
============= =============
* As per Insurance Supplement Dated 11/25/97
NONRECOVERABLE ADVANCE RECONCILIATION
-------------------------------------
95 Beginning of Month 0.00
96 Current Month Nonrecoverable Advance 0.00
97 Less: Current Month Reimbursment 0.00
--------------
98 End of Month 0.00
==============
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3 of 4
<PAGE>
<TABLE>
ALLIANCE FUNDING
by SUPERIOR BANK FSB -- SERVICING DIVISION
Designated Servicer
SERVICERS CERTIFICATE
1997-3 SUB POOL 2
In accordance with section 6.08 of the Pooling and
Servicing Agreement dated as of September 01, 1997
and the Insurance Agreement dated as of September 25, 1997,
Superior Bank FSB -- Servicing Division reports the following
information pertaining to series 1997-3 Sub Pool 2
for December 26, 1997, the Remittance date.
Period Ended: December 1, 1997
<CAPTION>
- -----------------------------------------------------------------------------------------
Class A1
--------------- ---------------
<S> <C> <C>
99 Total Class Principal -- Original Pool $179,472,143.00 $179,472,143.00
100 Interest Remittance Amount 889,587.73 889,587.73
101 Interest Rate Factor/1000 4.956690 4.956690
102 Total Principal Collections 3,270,337.41 3,270,337.41
103 Prefunding Account Transfer 0.00 0.00
104 Additional Principal Reduction 547,294.48 547,294.48
--------------- ---------------
105 Principal Remittance Amount 3,817,631.89 3,817,631.89
106 Principal Payment Factor/1000 21.271445 21.271445
107 Principal Factor 956.419568 956.419568
108 Prior Month Principal Factor 977.691013 977.691013
- -----------------------------------------------------------------------------------------
</TABLE>
Page 4 of 4
