================================================================================
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 March 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 (Zip Code)
Executive Offices)
Registrant's telephone number, including area code (630) 916-4000
================================================================================
<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 1998-1, 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 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.
Revised 7/23/98
<TABLE>
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 July 27, 1998, the Remittance date.
Due period ended: July 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
GROUP 1 SUB-POOL 1 SUB-POOL 2
------------------ ------------------- ------------------
COLLECTIONS
-----------
<S> <C> <C> <C>
1 Total Actual Principal Collections 2,838,209.77 555,913.04 2,282,296.73
2 Total Actual Interest Collections 1,842,274.49 681,398.76 1,160,875.73
3 Service Fees Previously Remitted 110,348.41 41,410.52 68,937.89
4 Additional Proceeds 0.00 0.00 0.00
------------------ ------------------- ------------------
5 TOTAL COLLECTIONS: 4,570,135.85 1,195,901.28 3,374,234.57
6 Pre-Funding Account Transfers 0.00 0.00 0.00
7 Interest Coverage Account Transfer 1,051.50 970.11 81.39
8 Deferred Interest Coverage Account Transfer 0.00 0.00 0.00
------------------ ------------------- ------------------
9 AGGREGATE AMOUNT RECEIVED: 4,571,187.35 1,196,871.39 3,374,315.96
MONTHLY ADVANCES
----------------
6 Delinquent Interest Advance 358,794.57 192,376.45 166,418.12
7 Compensating Interest 12,499.28 2,404.90 10,094.38
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: 4,942,481.20 1,391,652.74 3,550,828.46
FEES
----
12 Service Fees 63.79 58.96 4.83
13 Expense Account Deposit: 5,991.71 2,442.02 3,549.69
------------------ ------------------- ------------------
14 ADJUSTED REMITTANCE AMOUNT: 4,936,425.70 1,389,151.76 3,547,273.94
REMAINING AMOUNT AVAILABLE:
15 Adjusted Remittance Amount 4,936,425.70
16 Insured Payments due 0.00
17 Insurance Account Deposit @ 13 bp
the Ending Principal Balance 25,964.08
18 Cross Collateral Withdrawal 0.00
19 Class Remittance Amounts 4,910,461.62
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>
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 July 27, 1998, the Remittance date.
Due period ended: July 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
GROUP 1 GROUP 1A-1 GROUP 1A-2 GROUP R
------- ---------- ---------- -------
<S> <C> <C> <C>
32 Loans Outstanding - BOM 3,976 1,429 2,547
33 Original Loan Balance 247,698,638.26 99,785,596.17 147,913,042.09
34 Pre-Funding Account Balance 214,289.84 201,971.83 12,318.01
35 Initial Overcollateralization 5,406,310.91 1,750,716.48 3,655,594.43
36 Realized Losses, LTD 0.00 0.00 0.00
37 Carryforward Amount 0.00 0.00 0.00
-------------------------------------------------------------
38 Total Class Principal Balance 242,506,617.19 98,236,851.52 144,269,765.67
39 Pool Factor per Loan Balance 99.0794553% 39.9142385% 59.1652168%
40 Pool Factor per Class Balance 97.0026469% 39.2947406% 57.7079063%
41 Excess Spread 0.00 0.00
42 Principal Collection Factor 100.0000000% 19.5867496% 80.4132504%
43 Additional Principal due 795,654.09 155,842.77 639,811.32
44 Cross Collateral Withdrawal 0.00 0.00
45 Cross Collateral Deposit 0.00 0.00 0.00
46 Interest Remittance @ Pass-Through Rate 1,276,597.76 516,616.69 759,981.07
PRINCIPAL ADDITIONS:
47 Number 5 4 1
48 Loan transfers from Pre-Funding 214,289.84 201,971.83 12,318.01
Principal Reductions:
49 Prepayments - Number 37 6 31
50 Prepayments - Dollar 2,396,802.00 324,220.73 2,072,581.27
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 189,338.90 160,644.64 28,694.26
55 Normal and Excess Payments 252,068.87 71,047.67 181,021.20
-----------------------------------------------------------------------------
56 Principal Remittance 2,838,209.77 555,913.04 2,282,296.73
-----------------------------------------------------------------------------
57 Total Principal Remittance 2,838,209.77 555,913.04 2,282,296.73
58 Additional Principal Reduction 795,654.09 155,842.77 639,811.32
-----------------------------------------------------------------------------
59 TOTAL REMITTANCE 4,910,461.62 1,228,372.50 3,682,089.12 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 3944 1427 2517
63 Closing Loan Balance 245,074,718.33 99,431,654.96 145,643,063.37
64 Pre-Funding Account Balance 0.00 0.00 0.00
65 Additional Principal Reduction, LTD 6,201,965.00 1,906,559.26 4,295,405.74
66 Realized Losses, LTD 0.00 0.00 0.00
-----------------------------------------------------------------------------
67 Total Class Principal Balance 238,872,753.33 97,525,095.70 141,347,657.63
68 Pool Factor per Loan Balance 98.0298873% 39.7726620% 58.2572253%
69 Pool Factor per Class Balance 180.3576959% 39.0100383% 141.3476576%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
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 July 27, 1998, the Remittance date.
Due period ended: July 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
70 Weighted Note Rate - THIS Remittance 10.84490% 10.69557% 10.94564%
71 Weighted Note Rate - NEXT Remittance 10.84076% 10.69517% 10.94016%
72 Weighted Average Remaining Term 238.57 261.97 222.60
73 Accrual Period for Libor Rate 25-Jun-98 thru 26-Jul-98
74 Days in Related Period 32
75 Pass-Through Rate 5.91625% 5.92625%
GROUP 1 SUBPOOL 1 SUBPOOL 2
------------------- -------------------- ------------------
76 Original Pool - Principal Balance 180,932,515.76 70,000,198.22 110,932,317.54
77 Original Pool - Pre-Funding Account 71,848,070.66 31,112,036.36 40,736,034.30
78 Original Pool - Initial
Overcollateralization 2,780,586.42 1,112,234.58 1,668,351.84
---------------------------------------------------------------------
79 Original Pool Total 250,000,000.00 100,000,000.00 150,000,000.00
80 Original Pool - Number of Loans 2,841 1,000 1,841
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS 1A-1 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
BEG. OF MONTH CURRENT MONTH END OF MONTH
-----------------------------------------------------------------
<S> <C> <C> <C>
81 Initial Overcollateralization 1,750,716.48 155,842.77 1,906,559.26
82 Less: Realized Losses, LTD 0.00 0.00 0.00
83 Cross Collateralization Deposit, LTD 0.00 0.00 0.00
-----------------------------------------------------------------
84 Overcollateralization of Principal 1,750,716.48 155,842.77 1,906,559.26
=================================================================
85 Base Overcollateralization Required* 6,268,958.54
86 Required Overcollateralization Amount 6,268,958.54
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS 1A-2 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
BEG. OF MONTH CURRENT MONTH END OF MONTH
-----------------------------------------------------------------
<S> <C> <C> <C>
87 Initial Overcollateralization 3,655,594.43 639,811.32 4,295,405.74
88 Less: Realized Losses, LTD 0.00 0.00 0.00
89 Cross Collateralization Deposit, LTD 0.00 0.00 0.00
-----------------------------------------------------------------
90 Overcollateralization of Principal 3,655,594.43 639,811.32 4,295,405.74
=================================================================
91 Base Overcollateralization Required* 9,403,437.82
92 Required Overcollateralization Amount 9,403,437.82
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------------------------------
CURRENT MONTH SUBORDINATED AMOUNT BEG. OF MONTH CURRENT MONTH END OF MONTH
-----------------------------------------------------------------
<S> <C> <C> <C>
93 Original Group 1 Subordinated Amount* 31,268,958.54 N/A 31,850,353.89
94 Less: Group 1 Cumulative Realized Losses 0.00 0.00 0.00
95 Plus: Group 1 Cumulative Additional
Proceeds 0.00 0.00 0.00
-----------------------------------------------------------------
96 Current Group 1 Subordinated Amount 31,268,958.54 0.00 31,850,353.89
=================================================================
* As per Insurance Supplement
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
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 July 27, 1998, the Remittance date.
Due period ended: July 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
NONRECOVERABLE ADVANCE RECONCILIATION GROUP 1
------------------------------------- ---------
<S> <C>
97 Beginning of Month 0.00
98 Current Month Unpaid Nonrecoverable Advance 0.00
99 Less: Current Month Reimbursement 0.00
---------
100 End of Month 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS FACTORS GROUP 1 CLASS 1A-1 CLASS 1A-2
------------- ------------------ -------------------- -------------------
<S> <C> <C> <C>
101 Total Class Principal - Original Pool 250,000,000.00 100,000,000.00 150,000,000.00
102 Interest Remittance Amount 1,276,597.76 516,616.69 759,981.07
103 Interest Rate Factor/1000 5.106391 5.166167 5.066540
104 Total Principal Collections 2,838,209.77 555,913.04 2,282,296.73
105 Prefunding Account Excess 0.00 0.00 0.00
106 Additional Principal Reduction 795,654.09 155,842.77 639,811.32
------------------ -------------------- -------------------
107 Principal Remittance Amount 3,633,863.86 711,755.81 2,922,108.05
108 Principal Payment Factor/1000 14.535455 7.117558 19.480720
109 Current Month Ending Principal Factor 955.491014 975.250957 942.317717
110 Prior Month Ending Principal Factor 970.026469 982.368515 961.798437
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Revised 7/23/98
PAGE 1 OF 4
<TABLE>
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 July 27, 1998, the Remittance date.
Due period ended: July 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
GROUP 2 SUB-POOL 3 SUB-POOL 4
------------------- ------------------- -------------------
COLLECTIONS
-----------
<S> <C> <C> <C>
1 Total Actual Principal Collections 2,743,665.67 825,700.71 1,917,964.96
2 Total Actual Interest Collections 1,259,854.86 431,649.38 828,205.48
3 Service Fees Previously Remitted 79,834.03 27,847.24 51,986.79
4 Additional Proceeds 0.00 0.00 0.00
------------------- ------------------- -------------------
5 TOTAL COLLECTIONS: 3,923,686.50 1,229,502.85 2,694,183.65
6 Pre-Funding Account Transfers 0.00 0.00 0.00
7 Interest Coverage Account Transfer 161,473.18 0.00 161,473.18
8 Deferrred Interest Coverage Account Transfer 0.00 0.00 0.00
------------------- ------------------- -------------------
9 AGGREGATE AMOUNT RECEIVED: 4,085,159.68 1,229,502.85 2,855,656.83
MONTHLY ADVANCES
10 Delinquent Interest Advance 249,694.29 32,253.04 217,441.25
11 Compensating Interest 9,264.76 2,342.71 6,922.05
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: 4,344,118.73 1,264,098.60 3,080,020.13
FEES
16 Service Fees 10,135.74 0.00 10,135.74
17 Expense Account Deposit: 4,700.31 1,309.21 3,391.10
------------------- ------------------- -------------------
18 ADJUSTED REMITTANCE AMOUNT: 4,329,282.68 1,262,789.39 3,066,493.29
REMAINING AMOUNT AVAILABLE:
19 Adjusted Remittance Amount 4,329,282.68
20 Insured Payments due 0.00
21 Insurance Account Deposit @ 13 bp
the Ending Principal Balance 20,368.01
22 Cross Collateral Withdrawal 0.00
23 Class Remittance Amounts 4,308,914.67
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
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
PAGE 2 OF 4
<TABLE>
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 July 27, 1998, the Remittance date.
Due period ended: July 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
GROUP 2 CLASS 2A-1 CLASS 2A-2 CLASS R
----------------- ------------------- ------------------- -------------
<S> <C> <C> <C> <C>
32 Loans Outstanding - BOM 1,454 577 877
33 Original Loan Balance 161,273,524.08 54,581,417.69 106,692,106.39
34 Pre-Funding Account Balance 35,030,324.46 0.00 35,030,324.46
35 Initial Overcollaterization 5,547,747.39 1,387,382.83 4,160,364.56
36 Realized Losses, LTD 0.00 0.00 0.00
37 Carryforward Amount 0.00 0.00 0.00
-------------------------------------------------------------
38 Total Class Principal Balance 190,756,101.15 53,194,034.86 137,562,066.29
39 Pool Factor per Loan Balance 80.6367620% 27.2907088% 53.3460532%
40 Pool Factor per Class Balance 95.3780506% 26.5970174% 68.7810331%
41 Excess Spread 0.00 0.00
42 Principal Collection Factor 100.0000000% 30.0948005% 69.9051995%
43 Additional Principal due 572,730.35 172,362.06 400,368.29
44 Cross Collateral Withdrawal 0.00 0.00
45 Cross Collateral Deposit 0.00 0.00 0.00
46 Interest Remittance @ Pass-Through Rate 992,518.65 276,431.67 716,086.98
PRINCIPAL ADDITIONS:
47 Number 267 0 267
48 Loan transfers from Pre-Funding 35,030,324.46 0.00 35,030,324.46
PRINCIPAL REDUCTIONS:
49 Prepayments - Number 24 7 17
50 Prepayments - Dollar 2,658,338.97 789,313.13 1,869,025.84
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 9,353.62 9,353.62 0.00
55 Normal and Excess Payments 75,973.08 27,033.96 48,939.12
-----------------------------------------------------------------------------
56 Principal Remittance 2,743,665.67 825,700.71 1,917,964.96
-----------------------------------------------------------------------------
58 Total Principal Remittance 2,743,665.67 825,700.71 1,917,964.96
59 Additional Principal Reduction 572,730.35 172,362.06 400,368.29
-----------------------------------------------------------------------------
60 TOTAL REMITTANCE 4,308,914.67 1,274,494.44 3,034,420.23 0.00
=============================================================================
61 Current Month Realized Loss - Number 0 0 0 0
62 Current Month Realized Loss - Dollar 0.00 0.00 0.00 0.00
CLASS PRINCIPAL BALANCE - EOM
63 Loans Outstanding - EOM 1697 570 1127
64 Closing Loan Balance 193,560,182.87 53,755,716.98 139,804,465.89
65 Pre-Funding Account Balance 0.00 0.00 0.00
66 Additional Principal Reduction, LTD 6,120,477.74 1,559,744.88 4,560,732.86
67 Realized Losses, LTD 0.00 0.00 0.00
-----------------------------------------------------------------------------
68 Total Class Principal Balance 187,439,705.13 52,195,972.10 135,243,733.03
69 Pool Factor per Loan Balance 96.7800914% 26.8778585% 69.9022329%
70 Pool Factor per Class Balance 271.9956825% 26.0979861% 245.8976964%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
PAGE 3 OF 4
<TABLE>
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 July 27, 1998, the Remittance date.
Due period ended: July 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
71 Weighted Note Rate - THIS Remittance 10.33318% 10.29014% 10.35520%
72 Weighted Note Rate - NEXT Remittance 10.29085% 10.30194% 10.28659%
73 Weighted Average Remaining Term 354.17 354.38 354.09
74 Accrual Period for Libor Rate 25-Jun-98 thru 26-Jul-98
75 Days in Related Period 32
76 Pass-Through Rate 5.84625% 5.85625%
<CAPTION>
GROUP 2 SUBPOOL 3 SUBPOOL 4
--------------- -------------- ----------------
<S> <C> <C> <C>
77 Original Pool - Principal Balance 142,610,986.32 49,999,948.51 92,611,037.81
78 Original Pool - Pre-Funding Account 61,055,001.48 6,008,198.14 55,046,803.34
79 Original Pool - Initial Overcollateralization 3,665,987.80 1,008,146.65 2,657,841.15
----------------------------------------------------------------
80 Original Pool Total 200,000,000.00 55,000,000.00 145,000,000.00
81 Original Pool - Number of Loans 1,271 531 740
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS 2A-1 OVERCOLLATERALIZATION RECONCILIATION
BEG. OF MONTH CURRENT MONTH END OF MONTH
----------------------------------------------------------------
<S> <C> <C> <C>
82 Initial Overcollateralization 1,387,382.83 172,362.06 1,559,744.88
83 Less: Realized Losses, LTD 0.00 0.00 0.00
----------------------------------------------------------------
84 Overcollateralization of Principal 1,387,382.83 172,362.06 1,559,744.88
================================================================
84 Base Overcollateralization Required 2,968,431.77
86 Required Overcollateralization Amount 2,968,431.77
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS 2A-2 OVERCOLLATERALIZATION RECONCILIATION
BEG. OF MONTH CURRENT MONTH END OF MONTH
----------------------------------------------------------------
<S> <C> <C> <C>
87 Initial Overcollateralization 4,160,364.56 400,368.29 4,560,732.86
88 Less: Realized Losses, LTD 0.00 0.00 0.00
----------------------------------------------------------------
89 Overcollateralization of Principal 4,160,364.56 400,368.29 4,560,732.86
================================================================
90 Base Overcollateralization Required 7,825,865.58
91 Required Overcollateralization Amount 7,825,865.58
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CURRENT MONTH SUBORDINATED AMOUNT BEG. OF MONTH CURRENT MONTH END OF MONTH
----------------------------------------------------------------
<S> <C> <C> <C>
92 Original Group 2 Subordinated Amount* 23,217,922.60 N/A 24,134,419.55
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 23,217,922.60 0.00 24,134,419.55
================================================================
* Per Insurance Supplement
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
PAGE 4 OF 4
<TABLE>
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 July 27, 1998, the Remittance date.
Due period ended: July 1, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
NONRECOVERABLE ADVANCE RECONCILIATION GROUP 2
------------------------------------- -------
<S> <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
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASS FACTORS GROUP 2 CLASS 1A-1 CLASS 1A-2
------------- ---------------- ---------------- ----------------
<S> <C> <C> <C>
100 Total Class Principal - Original Pool 200,000,000.00 55,000,000.00 145,000,000.00
101 Interest Remittance Amount 992,518.65 276,431.67 716,086.98
102 Interest Rate Factor/1000 4.962593 5.026030 4.938531
103 Total Principal Collections 2,743,665.67 825,700.71 1,917,964.96
104 Prefunding Account Excess 0.00 0.00 0.00
105 Additional Principal Reduction 572,730.35 172,362.06 400,368.29
---------------- ---------------- ----------------
106 Principal Remittance Amount 3,316,396.02 998,062.77 2,318,333.25
107 Principal Payment Factor/1000 16.581980 18.146596 15.988504
108 Current Month Ending Principal Factor 937.198526 949.017674 932.715404
109 Prior Month Ending Principal Factor 953.780506 967.164270 948.703908
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
