- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 26, 1998
SUPERIOR BANK FSB (as depositor under the Pooling and Servicing Agreement, dated
as of September 1, 1998, providing for the issuance of AFC Mortgage Loan Asset
Backed Certificates, Series 1998-3)
Superior Bank FSB
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(Exact name of registrant as specified in its charter)
United States 333-61691 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 October 26, 1998 (a "Remittance Date") a scheduled remittance was made
to the Certificateholders with respect to AFC Mortgage Loan Asset Backed
Certificates, Series 1998-3, issued pursuant to a Pooling and Servicing
Agreement, dated as of September 1, 1998, among Superior Bank FSB., as Depositor
and Servicer and LaSalle National Bank, as Trustee. The information contained in
the Servicer's Monthly Remittance Report to the Trustee, which shall be
forwarded by the Trustee to the Certificateholders, is attached hereto as
Exhibit 21.1 and is incorporated herein by reference.
Capitalized terms used herein and not defined shall have the same meanings
ascribed to them in the Pooling and Servicing Agreement.
Items 2 through 4 and Items 6 and 8 are not included because they are not
applicable.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Not applicable
(b) Not applicable
(c) Exhibits
21.1 Monthly Remittance Report for the month of October, 1998.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SUPERIOR BANK F.S.B.
By: /s/ WILLIAM C. BRACKEN
-----------------------------
Name: William C. Bracken
Title: Senior Vice President
Dated: October 26, 1998
<PAGE>
EXHIBITS TABLE
21.1 Monthly Remittance Report for the month of October, 1998.
<TABLE>
<CAPTION>
ALLIANCE FUNDING PAGE 1 of 4
by SUPERIOR BANK FSB - SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-3 Group 1 (Sub-Pools 1 & 2)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-3 Group 1 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
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Group 1 Sub-Pool 1 Sub-Pool 2
-------------- -------------- --------------
<S> <C> <C> <C>
COLLECTIONS
1 Total Actual Principal Collections 472,110.95 27,260.16 444,850.79
2 Total Actual Interest Collections 341,579.05 75,312.39 266,266.66
3 Service Fees Previously Remitted 59,237.42 12,370.93 46,866.49
4 Additional Proceeds 0.00 0.00 0.00
-------------- -------------- --------------
5 TOTAL COLLECTIONS: 754,452.58 90,201.62 664,250.96
6 Pre-Funding Account Transfers 0.00 0.00 0.00
7 Interest Coverage Account Transfer 803,222.36 166,433.99 636,788.37
8 Deferred Interest Coverage Account Transfer 94,083.38 28,616.50 65,466.88
-------------- -------------- --------------
9 AGGREGATE AMOUNT RECEIVED: 1,651,758.32 285,252.11 1,366,506.21
MONTHLY ADVANCES
10 Delinquent Interest Advance 813,810.19 165,017.26 648,792.93
11 Compensating Interest 911.55 0.00 911.55
12 Amounts Held for Future Distributions 0.00 0.00 0.00
13 Cross Collateral Deposit 0.00 0.00 0.00
14 Reserve Withdrawal per Sec. 6.14 0.00 0.00 0.00
-------------- -------------- --------------
15 AVAILABLE REMITTANCE AMOUNT: 2,466,480.06 450,269.37 2,016,210.69
FEES
16 SERVICE FEES 17,639.48 4,534.66 13,104.82
17 EXPENSE ACCOUNT DEPOSIT: 1,987.73 424.77 1,562.96
-------------- -------------- --------------
18 ADJUSTED REMITTANCE AMOUNT: 2,446,852.85 445,309.94 2,001,542.91
REMAINING AMOUNT AVAILABLE:
19 Adjusted Remittance Amount 2,446,852.85
20 Insured Payments due 0.00
21 Monthly Insurance Premium @ 12 bp
the Ending Principal Balance 23,852.79
22 Cross Collateral Withdrawal 0.00
23 Class Remittance Amounts 2,423,000.06
24 Non-Recoverable Advances not
Previously Reimbursed 0.00
--------------
25 Total Remaining Amount Available: 0.00
==============
REIMBURSEMENTS DUE PURSUANT TO SEC. 5.04
26 Servicing Fee 0.00 0.00 0.00
27 Monthly Advances and Servicer Advances 0.00 0.00 0.00
28 Preference Amount per Sec. 6.06(b) 0.00 0.00 0.00
29 Servicing compensation per Sec. 7.03 0.00 0.00 0.00
30 REO Mgmt. & Dispositions per Sec 5.10 0.00 0.00 0.00
31 Trustee Advances per Sec 11.01 0.00 0.00 0.00
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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ALLIANCE FUNDING PAGE 2 of 4
by SUPERIOR BANK FSB - SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-3 Group 1 (Sub-Pools 1 & 2)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-3 Group 1 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
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Group 1 Class 1A-1 Class 1A-2 Class R
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
32 Loans Outstanding - BOM 2,328 456 1,872
33 Original Loan Balance 146,225,367.34 31,005,113.86 115,220,253.48
34 Pre-Funding Account Balance 95,188,774.10 20,510,037.66 74,678,736.44
35 Initial Overcollateralization 2,414,141.44 515,151.52 1,898,989.92
36 Realized Losses, LTD 0.00 0.00 0.00
37 Carryforward Amount 0.00 0.00 0.00
-------------- -------------- --------------
38 Total Class Principal Balance 239,000,000.00 51,000,000.00 188,000,000.00
39 Pool Factor per Loan Balance 61.1821621% 12.9728510% 48.2093111%
40 Pool Factor per Class Balance 100.0000000% 21.3389121% 78.6610879%
41 Excess Spread 0.00 0.00
42 Principal Collection Factor 100.0000000% 5.7741003% 94.2258997%
43 Additional Principal due 694,999.11 40,129.95 654,869.16
44 Cross Collateral Withdrawal 0.00 0.00
45 Cross Collateral Deposit 0.00 0.00 0.00
46 Interest Remittance @ Pass-Through Rate 1,255,890.00 267,636.67 988,253.33
PRINCIPAL ADDITIONS:
47 Number 513 195 318
48 Loan transfers from Pre-Funding 31,812,672.74 12,970,637.34 18,842,035.40
PRINCIPAL REDUCTIONS:
49 Prepayments - Number 5 0 5
50 Prepayments - Dollar 338,265.68 0.00 338,265.68
51 Delinquent Loans Repurchased - Number 0 0 0
52 Delinquent Loans Repurchased - Dollar 0.00 0.00 0.00
53 Net Liquidation Proceeds 0.00 0.00 0.00
54 Curtailments 0.00 0.00 0.00
55 Normal and Excess Payments 133,845.27 27,260.16 106,585.11
-------------- -------------- --------------
56 Principal Remittance 472,110.95 27,260.16 444,850.79
-------------- -------------- --------------
57 Total Principal Remittance 472,110.95 27,260.16 444,850.79
58 Additional Principal Reduction 694,999.11 40,129.95 654,869.16
-------------- -------------- --------------
59 TOTAL REMITTANCE 2,423,000.06 335,026.78 2,087,973.28 0.00
============== ============== ============== ===============
60 Current Month Realized Loss - Number 0 0 0 0
61 Current Month Realized Loss - Dollar 0.00 0.00 0.00 0.00
CLASS PRINCIPAL BALANCE - EOM
62 Loans Outstanding - EOM 2836 651 2185
63 Closing Loan Balance 177,565,929.13 43,948,491.04 133,617,438.09
64 Pre-Funding Account Balance 63,376,101.36 7,539,400.32 55,836,701.04
65 Additional Principal Reduction, LTD 3,109,140.55 555,281.47 2,553,859.08
66 Realized Losses, LTD 0.00 0.00 0.00
-------------- -------------- --------------
67 Total Class Principal Balance 237,832,889.94 50,932,609.89 186,900,280.05
68 Pool Factor per Loan Balance 74.2953679% 18.3884900% 55.9068779%
69 Pool Factor per Class Balance 387.7818528% 21.3107154% 366.4711374%
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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ALLIANCE FUNDING PAGE 3 of 4
by SUPERIOR BANK FSB - SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-3 Group 1 (Sub-Pools 1 & 2)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-3 Group 1 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
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<S> <C> <C> <C>
70 Weighted Note Rate - THIS Remittance 10.47553% 10.39514% 10.49734%
71 Weighted Note Rate - NEXT Remittance 10.47553% 10.39514% 10.49734%
72 Weighted Average Remaining Term 241.89 266.53 233.78
73 Accrual Period for Libor Rate 24-Sep-98 thru 25-Oct-98
74 Days in Related Period 32
75 Pass-Through Rate 5.90375% 5.91375%
Group 1 Subpool 1 Subpool 2
-------------- -------------- --------------
76 Original Pool - Principal Balance 146,225,367.34 31,005,113.86 115,220,253.48
77 Original Pool - Pre-Funding Account 95,188,774.10 20,510,037.66 74,678,736.44
78 Original Pool - Initial Overcollateralization 2,414,141.44 515,151.52 1,898,989.92
-------------- -------------- --------------
79 Original Pool Total 239,000,000.00 51,000,000.00 188,000,000.00
80 Original Pool - Number of Loans 0 0 0
CLASS 1A-1 OVERCOLLATERALIZATION RECONCILIATION
----------------------------------------------- Beg. of Month Current Month End of Month
-------------- -------------- --------------
81 Initial Overcollateralization 515,151.52 40,129.95 555,281.47
82 Less: Realized Losses, LTD 0.00 0.00 0.00
83 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
-------------- -------------- --------------
84 Overcollateralization of Principal 515,151.52 40,129.95 555,281.47
============== ============== ==============
85 Base Overcollateralization Required* 3,013,636.36
86 Required Overcollateralization Amount 3,013,636.36
CLASS 1A-2 OVERCOLLATERALIZATION RECONCILIATION
----------------------------------------------- Beg.of Month Current Month End of Month
-------------- -------------- --------------
87 Initial Overcollateralization 1,898,989.92 654,869.16 2,553,859.08
88 Less: Realized Losses, LTD 0.00 0.00 0.00
89 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
-------------- -------------- --------------
90 Overcollateralization of Principal 1,898,989.92 654,869.16 2,553,859.08
============== ============== ==============
90 Base Overcollateralization Required* 11,109,090.91
91 Required Overcollateralization Amount 11,109,090.91
CURRENT MONTH SUBORDINATED AMOUNT Beg. of Month Current Month End of Month
--------------------------------- -------------- -------------- --------------
92 Original Group 1 Subordinated Amount 28,728,282.83 N/A 28,728,282.83
93 Less: Group 1 Cumulative Realized Losses 0.00 0.00 0.00
94 Plus: Group 1 Cumulative Additional Proceeds 0.00 0.00 0.00
-------------- -------------- --------------
95 Current Group 1 Subordinated Amount 28,728,282.83 0.00 28,728,282.83
============== ============== ==============
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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ALLIANCE FUNDING PAGE 4 of 4
by SUPERIOR BANK FSB - SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-3 Group 1 (Sub-Pools 1 & 2)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-3 Group 1 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
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NONRECOVERABLE ADVANCE RECONCILIATION Group 1
------------------------------------- -------------------
<S> <C> <C> <C>
96 Beginning of Month 0.00
97 Current Month Unpaid Nonrecoverable Advance 0.00
98 Less: Current Month Reimbursement 0.00
99 End of Month 0.00
CLASS FACTORS Group 1 Class 1A-1 Class 1A-2
-------------- -------------- --------------
100 Total Class Principal - Original Pool 239,000,000.00 51,000,000.00 188,000,000.00
101 Interest Remittance Amount 1,255,890.00 267,636.67 988,253.33
102 Interest Rate Factor / 1000 5.254770 5.247778 5.256667
103 Total Principal Collections 472,110.95 27,260.16 444,850.79
104 Prefunding Account Excess 0.00 0.00 0.00
-------------- -------------- --------------
105 Additional Principal Reduction 694,999.11 40,129.95 654,869.16
106 Principal Remittance Amount 1,167,110.06 67,390.11 1,099,719.95
107 Principal Payment Factor/1000 4.883306 1.321375 5.849574
108 Current Month Ending Principal Factor 995.116694 998.678625 994.150426
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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ALLIANCE FUNDING PAGE 1 of 4
by SUPERIOR BANK FSB - SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-3 Group 2 (Sub-Pools 3 & 4)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-3 Group 2 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
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Group 2 Sub-Pool 3 Sub-Pool 4
-------------- ------------- --------------
<S> <C> <C> <C>
COLLECTIONS
-----------
1 Total Actual Principal Collections 579,724.02 291,027.10 288,696.92
2 Total Actual Interest Collections 259,270.25 111,172.48 148,097.77
3 Service Fees Previously Remitted 51,274.66 19,694.57 31,580.09
4 Additional Proceeds 0.00 0.00 0.00
-------------- ------------- --------------
5 Total Collections: 787,719.61 382,505.01 405,214.60
6 Pre-Funding Account Transfers 0.00 0.00 0.00
7 Interest Coverage Account Transfer 692,740.82 262,080.50 430,660.32
8 Deferred Interest Coverage Account Transfer 34,367.59 10,339.02 24,028.57
-------------- ------------- --------------
9 Aggregate Amount Received: 1,514,828.02 654,924.53 859,903.49
MONTHLY ADVANCES
----------------
10 Delinquent Interest Advance 764,065.75 262,764.86 501,300.89
11 Compensating Interest 758.79 616.35 142.44
12 Amounts Held for Future Distributions 0.00 0.00 0.00
13 Cross Collateral Deposit 0.00 0.00 0.00
14 Reserve Withdrawal per Sec. 6.14 0.00 0.00 0.00
-------------- ------------- --------------
15 Available Remittance Amount: 2,279,652.56 918,305.74 1,361,346.82
FEES
----
16 Service Fees 12,187.85 5,054.16 7,133.69
17 Expense Account Deposit: 1,753.50 647.57 1,105.93
-------------- ------------- --------------
18 Adjusted Remittance Amount: 2,265,711.21 912,604.01 1,353,107.20
REMAINING AMOUNT AVAILABLE:
19 Adjusted Remittance Amount 2,265,711.21
20 Insured Payments due 0.00
21 Monthly Insurance Premium @ 12 bp
the Ending Principal Balance 21,042.03
22 Cross Collateral Withdrawal 0.00
23 Class Remittance Amounts 2,244,669.18
24 Non-Recoverable Advances not
Previously Reimbursed 0.00
--------------
25 Total Remaining Amount Available: 0.00
==============
REIMBURSEMENTS DUE PURSUANT TO SEC. 5.04
26 Servicing Fee 0.00 0.00 0.00
27 Monthly Advances and Servicer Advances 0.00 0.00 0.00
28 Preference Amount per Sec. 6.06(b) 0.00 0.00 0.00
29 Servicing compensation per Sec. 7.03 0.00 0.00 0.00
30 REO Mgmt. & Dispositions per Sec 5.10 0.00 0.00 0.00
31 Trustee Advances per Sec 11.01 0.00 0.00 0.00
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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ALLIANCE FUNDING PAGE 2 of 4
by SUPERIOR BANK FSB - SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-3 Group 2 (Sub-Pools 3 & 4)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-3 Group 2 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
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Group 2 Class 2A-1 Class 2A-2 Class R
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
32 Loans Outstanding - BOM 1,187 488 699
33 Original Loan Balance 130,129,333.25 47,000,249.24 83,129,084.01
34 Pre-Funding Account Balance 84,083,864.70 32,187,568.00 51,896,296.70
35 Initial Overcollateralization 3,213,197.95 1,187,817.24 2,025,380.71
36 Realized Losses, LTD 0.00 0.00 0.00
37 Carryforward Amount 0.00 0.00 0.00
-------------- -------------- --------------
38 Total Class Principal Balance 211,000,000.00 78,000,000.00 133,000,000.00
39 Pool Factor per Loan Balance 61.6726698% 22.2749996% 39.3976701%
40 Pool Factor per Class Balance 100.0000000% 36.9668246% 63.0331754%
41 Excess Spread 0.00 0.00
42 Principal Collection Factor 100.0000000% 50.2009732% 49.7990268%
43 Additional Principal due 567,735.16 285,008.58 282,726.58
44 Cross Collateral Withdrawal 0.00 0.00
45 Cross Collateral Deposit 0.00 0.00 0.00
46 Interest Remittance @ Pass-Through Rate 1,097,210.00 405,166.67 692,043.33
Principal Additions:
47 Number 146 102 44
48 Loan transfers from Pre-Funding 18,044,826.23 9,710,950.97 8,333,875.26
Principal Reductions:
49 Prepayments - Number 5 3 2
50 Prepayments - Dollar 534,207.10 273,318.63 260,888.47
51 Delinquent Loans Repurchased - Number 0 0 0
52 Delinquent Loans Repurchased - Dollar 0.00 0.00 0.00
53 Net Liquidation Proceeds 0.00 0.00 0.00
54 Curtailments 0.00 0.00 0.00
55 Normal and Excess Payments 45,516.92 17,708.47 27,808.45
-------------- -------------- --------------
56 Principal Remittance 579,724.02 291,027.10 288,696.92
-------------- -------------- --------------
57 Total Principal Remittance 579,724.02 291,027.10 288,696.92
58 Additional Principal Reduction 567,735.16 285,008.58 282,726.58
-------------- -------------- --------------
59 Total Remittance 2,244,669.18 981,202.35 1,263,466.83 0.00
============== ============== ============== ==============
60 Current Month Realized Loss - Number 0 0 0 0
61 Current Month Realized Loss - Dollar 0.00 0.00 0.00 0.00
Class Principal Balance - EOM
62 Loans Outstanding - EOM 1328 587 741
63 Closing Loan Balance 147,594,435.46 56,420,173.11 91,174,262.35
64 Pre-Funding Account Balance 66,039,038.47 22,476,617.03 43,562,421.44
65 Additional Principal Reduction, LTD 3,780,933.11 1,472,825.82 2,308,107.29
66 Realized Losses, LTD 0.00 0.00 0.00
-------------- -------------- --------------
67 Total Class Principal Balance 209,852,540.82 77,423,964.32 132,428,576.50
68 Pool Factor per Loan Balance 69.9499694% 26.7394185% 43.2105509%
69 Pool Factor per Class Balance 206.4740482% 36.6938220% 169.7802263%
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</TABLE>
<PAGE>
<TABLE>
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<CAPTION>
ALLIANCE FUNDING PAGE 3 of 4
by SUPERIOR BANK FSB - SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-3 Group 2 (Sub-Pools 3 & 4)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-3 Group 2 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
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<S> <C> <C> <C>
70 Weighted Note Rate - THIS Remittance 10.10369 % 10.07465 % 10.12072 %
71 Weighted Note Rate - NEXT Remittance 10.10369 % 10.07465 % 10.12072 %
72 Weighted Average Remaining Term 356.28 357.95 355.24
73 Accrual Period for Libor Rate 24-Sep-98 thru 25-Oct-98
74 Days in Related Period 32
75 Pass-Through Rate 5.84375% 5.85375%
Group 2 SUBPOOL 3 SUBPOOL 4
-------------- -------------- --------------
76 Original Pool - Principal Balance 130,129,333.25 47,000,249.24 83,129,084.01
77 Original Pool - Pre-Funding Account 84,083,864.70 32,187,568.00 51,896,296.70
78 Original Pool - Initial Overcollateralization 3,213,197.95 1,187,817.24 2,025,380.71
-------------- -------------- --------------
79 Original Pool Total 211,000,000.00 78,000,000.00 133,000,000.00
80 Original Pool - Number of Loans 1,187 488 699
CLASS 2A-1 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
Beg. of Month Current Month End of Month
-------------- -------------- --------------
81 Initial Overcollateralization 1,187,817.24 285,008.58 1,472,825.82
82 Less: Realized Losses, LTD 0.00 0.00 0.00
83 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
-------------- -------------- --------------
84 Overcollateralization of Principal 1,187,817.24 285,008.58 1,472,825.82
============== ============== ==============
85 Base Overcollateralization Required 4,157,360.41
86 Required Overcollateralization Amount 4,157,360.41
CLASS 2A-2 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
Beg. of Month Current Month End of Month
-------------- -------------- --------------
87 Initial Overcollateralization 2,025,380.71 282,726.58 2,308,107.29
88 Less: Realized Losses, LTD 0.00 0.00 0.00
89 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
-------------- -------------- --------------
90 Overcollateralization of Principal 2,025,380.71 282,726.58 2,308,107.29
============== ============== ==============
90 Base Overcollateralization Required 7,088,832.49
91 Required Overcollateralization Amount 7,088,832.49
CURRENT MONTH SUBORDINATED AMOUNT Beg. of Month Current Month End of Month
--------------------------------- -------------- -------------- --------------
92 Original Group 2 Subordinated Amount 32,812,942.37 N/A 32,812,942.37
93 Less: Group 2 Cumulative Realized Losses 0.00 0.00 0.00
94 Plus: Group 2 Cumulative Additional Proceeds 0.00 0.00 0.00
-------------- -------------- --------------
95 Current Group 2 Subordinated Amount 32,812,942.37 0.00 32,812,942.37
============== ============== ==============
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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ALLIANCE FUNDING PAGE 4 of 4
by SUPERIOR BANK FSB - SERVICING DIVISION
Designated Servicer
SERVICER'S CERTIFICATE
1998-3 Group 2 (Sub-Pools 3 & 4)
In accordance with section 6.08 of the Pooling and Servicing Agreement dated as of September 1, 1998
Superior Bank FSB - Servicing Division reports the following
information pertaining to Series 1998-3 Group 2 for October 26, 1998, the Remittance date.
Due period ended: October 1, 1998
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NONRECOVERABLE ADVANCE RECONCILIATION Group 2
------------------------------------- --------------
<S> <C> <C> <C>
96 Beginning of Month 0.00
97 Current Month Unpaid Nonrecoverable Advance 0.00
98 Less: Current Month Reimbursement 0.00
99 End of Month 0.00
CLASS FACTORS Group 2 Class 2A-1 Class 2A-2
-------------- -------------- --------------
100 Total Class Principal - Original Pool 211,000,000.00 78,000,000.00 133,000,000.00
101 Interest Remittance Amount 1,097,210.00 405,166.67 692,043.33
102 Interest Rate Factor / 1000 5.200047 5.194444 5.203333
103 Total Principal Collections 579,724.02 291,027.10 288,696.92
104 Prefunding Account Excess 0.00 0.00 0.00
105 Additional Principal Reduction 567,735.16 285,008.58 282,726.58
-------------- -------------- --------------
106 Principal Remittance Amount 1,147,459.18 576,035.68 571,423.50
107 Principal Payment Factor/1000 5.438195 7.385073 4.296417
108 Current Month Ending Principal Factor 994.561805 992.614927 995.703583
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</TABLE>
