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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) July 27, 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
- ----------------------------------------------------------------------------
(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 July 27, 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 July, 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: July 27, 1998
<PAGE>
EXHIBITS INDEX
21.1 Monthly Remittance Report for the month of July, 1998.
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-2 Group 1
<TABLE>
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 July 27, 1998, the Remittance date.
Due period ended: July 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1 Total Actual Principal Collections 1,585,033.12
2 Total Actual Interest Collections 408,592.51
3 Less Service Fees Service Fees Previously Remitted 27,056.72
4 Additional Proceeds 0.00
---------------
5 Total Collections: 1,966,568.91
6 Pre-Funding Account Transfer 0.00
7 Interest Coverage Account Transfer 988,929.00
---------------
8 Aggregate Amount Received: 2,955,497.91
Monthly Advances
9 Interest Advance 931,446.43
10 Compensating Interest 3,015.39
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: 3,889,959.73
15 Service Fees 58,696.50
16 Expense Account Deposit: 6,610.37
---------------
17 Adjusted Remittance Amount: 3,824,652.86
Remaining Amount Available:
18 Adjusted Remittance Amount 3,824,652.86
19 Insured Payments 0.00
20 Monthly Premium @ 12 bp
due Certificate Insurer 26,441.50
21 Cross Collateral Withdrawal 0.00
22 Class Remittance Amounts 3,798,211.36
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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</TABLE>
Page 1 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-2 Group 1
<TABLE>
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 July 27, 1998, the Remittance date.
Due period ended: July 1, 1998
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<CAPTION>
TOTAL CLASS 1A CLASS R
----- -------- -------
<S> <C> <C> <C>
29 Loans Outstanding - BOM 2573
30 Original Loan Balance 168,503,688.56 168,503,688.56
31 Pre-Funding Account Balance 100,454,855.42 100,454,855.42
32 Initial Overcollateralization 2,958,543.98 2,958,543.98
33 Realized Losses, LTD 0.00 0.00
34 Carryforward Amount 0.00 0.00
35 Aggregate Unpaid Principal Balance of Delinquent
Loans Repurchased per Sec. 5.11 0.00 0.00
--------------------------------------------------------------
36 Total Class Principal Balance 266,000,000.00 266,000,000.00
37 Pool Factor per Loan Balance 63.3472513% 63.3472513%
38 Pool Factor per Class Balance 100.0000000% 100.0000000%
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 828,500.46 828,500.46
43 Interest Remittance @ Pass-Through Rates 1,384,677.78 1,384,677.78
PRINCIPAL ADDITIONS:
44 Number of loans 656 656
45 Transfers from Pre-Funding Account 40,332,902.45 40,332,902.45
PRINCIPAL REDUCTIONS:
46 Class 1A-5 Lockout Remittance 0.00
47 Prepayments - Number 14 14
48 Prepayments - Dollar 1,271,981.52 1,271,981.52
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 147,413.63 147,413.63
53 Normal and Excess Payments 165,637.97 165,637.97
54 Pre-Funding Account Transfer 0.00 0.00
--------------------------------------------------------------
55 Total Principal Remittance 1,585,033.12 1,585,033.12
56 Additional Principal Reduction 828,500.46 828,500.46
--------------------------------------------------------------
57 Total Remittance 3,798,211.36 3,798,211.36 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 3215
61 Closing Loan Balance 207,251,557.89 207,251,557.89
62 Pre-Funding Account Balance 60,121,952.97 60,121,952.97
63 Additional Principal Reduction, LTD 3,787,044.44 3,787,044.44
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 263,586,466.42 263,586,466.42
68 Pool Factor per Loan Balance 77.9141195% 77.9141195%
69 Pool Factor per Class Balance 99.0926565% 99.0926566%
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</TABLE>
Page 2 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-2 Group 1
<TABLE>
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 July 27, 1998, the Remittance date.
Due period ended: July 1, 1998
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<CAPTION>
TOTAL CLASS A-1
----- ---------
<S> <C> <C> <C>
70 Weighted Note Rate - THIS Remittance 10.59306%
71 Weighted Note Rate - NEXT Remittance 10.59306%
72 Related Remittance Period for Libor Rate 25-Jun-98 thru 26-Jul-98
73 Days in Related Period 32
74 Pass-Through Rates 5.85625%
75 Weighted Average Remaining Term 238.38
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 2,958,543.98 828,500.46 3,787,044.44
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 2,958,543.98 828,500.46 3,787,044.44
===================================================================
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
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-2 Group 1
<TABLE>
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 July 27, 1998, the Remittance date.
Due period ended: July 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS
TOTAL A1
------------------------------------------
<S> <C> <C>
95 Total Class Principal - Original Pool $266,000,000.00 $266,000,000.00
96 Interest Remittance Amount 1,384,677.78 1,384,677.78
97 Interest Rate Factor/1000 5.205556 5.205556
98 Total Principal Collections 1,585,033.12 1,585,033.12
99 Prefunding Account Transfer 0.00 0.00
100 Additional Principal Reduction 828,500.46 828,500.46
------------------------------------------
101 Principal Remittance Amount 2,413,533.58 2,413,533.58
102 Principal Payment Factor/1000 9.073435 9.073435
103 Principal Factor 990.926565 990.926565
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 4 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICERS CERTIFICATE
1998-2 Group 2
<TABLE>
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of June 1, 1998
and the Insurance Agreement dated as of June 25, 1998, Superior Bank - FSB Servicing Division reports the following
information pertaining to series 1998-2 Group 2 for July 27, 1998, the Remittance date.
Period Ended: July 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
1 Total Actual Principal Collections 556,344.80
2 Total Actual Interest Collections 248,032.40
3 Less: Service Fees Previously Remitted 19,903.65
4 Additional Proceeds 0.00
------------------
5 Total Collections: 784,473.55
6 Pre-Funding Account Transfer 0.00
7 Interest Coverage Account Transfer 675,577.25
------------------
8 Aggregate Amount Received: 1,460,050.80
Monthly Advance
9 Interest Advance 766,036.15
10 Compensating Interest 2,517.96
11 Amounts Held for Future Distributions 0.00
12 Reserve Withdrawal Per Sec. 6.08 VII 0.00
------------------
13 Available Remittance Amount: 2,228,604.91
14 Less: Service Fees 38,701.37
15 Less: Expense Account Deposit 4,961.09
16 Cross Collateral Deposit 0.00
------------------
17 Adjusted Remittance Amount: 2,184,942.45
Remaining Amount Available:
18 Adjusted Remittance Amount 2,184,942.45
19 Insured Payments 0.00
20 Monthly Premium @ 12 bp
due Certificate Insurer 19,844.37
21 Class Remittance Amounts 2,165,098.08
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
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICERS CERTIFICATE
1998-2 Group 2
<TABLE>
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of June 1, 1998
and the Insurance Agreement dated as of June 25, 1998, Superior Bank - FSB Servicing Division reports the following
information pertaining to series 1998-2 Group 2 for July 27, 1998, the Remittance date.
Period Ended: July 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TOTAL CLASS 2-A CLASS R
----- --------- -------
<S> <C> <C> <C>
30 Number of Loans 1134
31 Original Principal Balance 124,023,590.83 124,023,590.83
32 Original Pre-Funding Account Balance 79,228,918.11 79,228,918.11
33 Initial Overcollateralization 4,252,508.94 4,252,508.94
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 199,000,000.00 199,000,000.00
38 Pool Factor per Loan Balance 62.3234125% 62.3234125%
39 Pool Factor per Class Balance 100.0000000% 100.0000000%
40 Excess Spread 0.00 0.00
41 Additional Principal due Class A 581,692.17 581,692.17
42 Cross Collateral Deposit 0.00 0.00
43 Cross Collateral Withdrawal 0.00 0.00
44 Interest Remittance 1,027,061.11 1,027,061.11
45 Available Funds Cap Carry Forward 0.00 0.00
Distribution (see schedule C)
PRINCIPAL ADDITIONS:
46 Number of Loans 389
47 Transfers from Pre-Funding Account 41,472,143.64 41,472,143.64
PRINCIPAL REDUCTIONS:
48 Prepayments - Number 7 7
49 Prepayments - Dollar 494,492.47 494,492.47
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 17,800.00 17,800.00
54 Normal and Excess Payments 44,052.33 44,052.33
55 Pre-Funding Account Transfer 0.00 0.00
--------------------------------------------------------------
56 Total Principal Remittance 556,344.80 556,344.80
57 Additional Principal Reduction 581,692.17 581,692.17
--------------------------------------------------------------
58 Total Remittance 2,165,098.08 2,165,098.08 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 # 1516
63 Closing Loan Balance 164,939,389.67 164,939,389.67
64 Pre-Funding Account Balance 37,756,774.47 37,756,774.47
65 Additional Principal Reduction, LTD 4,834,201.11 4,834,201.11
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 197,861,963.03 197,861,963.03
70 Pool Factor per Loan Balance 82.8841154% 82.8841154%
71 Pool Factor per Class Balance 99.4281221% 99.4281221%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2 of 4
<PAGE>
ALLIANCE FUNDING COMPANY
by SUPERIOR BANK - FSB SERVICING DIVISION
Designated Servicer
SERVICERS CERTIFICATE
1998-2 Group 2
<TABLE>
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of June 1, 1998
and the Insurance Agreement dated as of June 25, 1998, Superior Bank - FSB Servicing Division reports the following
information pertaining to series 1998-2 Group 2 for July 27, 1998, the Remittance date.
Period Ended: July 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TOTAL CLASS A1
----- --------
<S> <C> <C> <C>
72 Weighted Note Rate - This Remittance: 10.24394%
73 Weighted Note Rate - Next Remittance: 10.24394%
74 Available Cap Carry Forward Amount - This Remittance: 0.00
(see schedule C)
75 Pass-Through Rate: 5.80625% 5.80625%
76 Related Remittance Period: 25-Jun-98 thru 26-Jul-98
77 Days in Related Period: 32
78 Weighted Average Remaining Term 356.58
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 4,252,508.94 581,692.17 4,834,201.11
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 4,252,508.94 581,692.17 4,834,201.11
==============================================================
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
SERVICERS CERTIFICATE
1998-2 Group 2
<TABLE>
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of June 1, 1998
and the Insurance Agreement dated as of June 25, 1998, Superior Bank - FSB Servicing Division reports the following
information pertaining to series 1998-2 Group 2 for July 27, 1998, the Remittance date.
Period Ended: July 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS
A1
--------------------------------------------
<S> <C> <C>
98 Total Class Principal - Original Pool $199,000,000.00 $199,000,000.00
99 Interest Remittance Amount 1,027,061.11 1,027,061.11
100 Interest Rate Factor/1000 5.161111 5.161111
101 Total Principal Collections 556,344.80 556,344.80
102 Prefunding Account Transfer 0.00 0.00
103 Additional Principal Reduction 581,692.17 581,692.17
--------------------------------------------
104 Principal Remittance Amount 1,138,036.97 1,138,036.97
105 Principal Payment Factor/1000 5.718779 5.718779
106 Principal Factor 994.281221 994.281221
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 4 of 4
