================================================================================
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) August 25, 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 August 25, 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 August, 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: August 25, 1998
<PAGE>
EXHIBITS INDEX
21.1 Monthly Remittance Report for the month of August, 1998.
<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 August 25, 1998, the Remittance date.
Due period ended: August 1, 1998
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Group 1 Sub-Pool 1 Sub-Pool 2
-------------- ------------- --------------
<S> <C> <C> <C>
COLLECTIONS
-----------
1 Total Actual Principal Collections 2,858,208.46 1,375,209.12 1,482,999.34
2 Total Actual Interest Collections 2,184,831.45 873,734.48 1,311,096.97
3 Service Fees Previously Remitted 130,998.97 53,101.30 77,897.67
4 Additional Proceeds 0.00 0.00 0.00
-------------- ------------- --------------
5 TOTAL COLLECTIONS: 4,912,040.94 2,195,842.30 2,716,198.64
MONTHLY ADVANCES
----------------
6 Delinquent Interest Advance 15,603.10 6,099.98 9,503.12
7 Compensating Interest 12,074.68 5,777.84 6,296.84
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: 4,939,718.72 2,207,720.12 2,731,998.60
FEES
----
12 Service Fees 0.00 0.00 0.00
13 EXPENSE ACCOUNT DEPOSIT: 5,900.37 2,403.75 3,496.62
-------------- ------------- --------------
14 Adjusted Remittance Amount: 4,933,818.35 2,205,316.37 2,728,501.98
REMAINING AMOUNT AVAILABLE:
15 Adjusted Remittance Amount 4,933,818.35
16 Insured Payments due 0.00
17 Insurance Account Deposit @ 13 bp
the Ending Principal Balance 25,568.24
18 Cross Collateral Withdrawal 0.00
19 Class Remittance Amounts 4,908,250.11
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 August 25, 1998, the Remittance date.
Due period ended: August 1, 1998
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Group 1 Class 1A-1 Class 1A-2 Class R
-------------- ------------- -------------- ----------
<S> <C> <C> <C> <C>
32 Loans Outstanding - BOM 3,944 1,427 2,517
33 Original Loan Balance 245,074,718.33 99,431,654.96 145,643,063.37
34 Pre-Funding Account Balance 0.00 0.00 0.00
35 Initial Overcollateralization 6,201,965.00 1,906,559.26 4,295,405.74
36 Realized Losses, LTD 0.00 0.00 0.00
37 Carryforward Amount 0.00 0.00 0.00
-------------- ------------- --------------
38 Total Class Principal Balance 238,872,753.33 97,525,095.70 141,347,657.63
39 Pool Factor per Loan Balance 98.0298873% 39.7726620% 58.2572253%
40 Pool Factor per Class Balance 95.5491013% 39.0100383% 56.5390631%
41 Excess Spread 0.00 0.00
42 Principal Collection Factor 100.0000000% 48.1143744% 51.8856256%
43 Additional Principal due 910,466.99 438,065.50 472,401.49
44 Cross Collateral Withdrawal 0.00 0.00
45 Cross Collateral Deposit 0.00 0.00 0.00
46 Interest Remittance @ Pass-Through Rate 1,139,574.66 464,791.74 674,782.92
PRINCIPAL REDUCTIONS:
47 Prepayments - Number 43 18 25
48 Prepayments - Dollar 2,589,526.75 1,293,411.97 1,296,114.78
49 Delinquent Loans Repurchased - Number 0 0 0
50 Delinquent Loans Repurchased - Dollar 0.00 0.00 0.00
51 Net Liquidation Proceeds 0.00 0.00 0.00
52 Curtailments 2,000.00 2,000.00 0.00
53 Normal and Excess Payments 266,681.71 79,797.15 186,884.56
-------------- ------------- --------------
54 Principal Remittance 2,858,208.46 1,375,209.12 1,482,999.34
-------------- ------------- --------------
55 Total Principal Remittance 2,858,208.46 1,375,209.12 1,482,999.34
56 Additional Principal Reduction 910,466.99 438,065.50 472,401.49
-------------- ------------- -------------- --------
57 TOTAL REMITTANCE 4,908,250.11 2,278,066.36 2,630,183.75 0.00
============== ============= ============== ========
58 Current Month Realized Loss - Number 0 0 0 0
59 Current Month Realized Loss - Dollar 0.00 0.00 0.00 0.00
CLASS PRINCIPAL BALANCE - EOM
60 Loans Outstanding - EOM 3901 1409 2492
61 Closing Loan Balance 242,216,509.87 98,056,445.84 144,160,064.03
62 Pre-Funding Account Balance 0.00 0.00 0.00
63 Additional Principal Reduction, LTD 7,112,431.99 2,344,624.75 4,767,807.24
64 Realized Losses, LTD 0.00 0.00 0.00
-------------- ------------- --------------
65 Total Class Principal Balance 235,104,077.88 95,711,821.09 139,392,256.79
66 Pool Factor per Loan Balance 96.8866039% 39.2225783% 57.6640256%
67 Pool Factor per Class Balance 177.6769852% 38.2847284% 139.3922568%
- ------------------------------------------------------------------------------------------------------------------------------------
</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 August 25, 1998, the Remittance date.
Due period ended: August 1, 1998
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
68 Weighted Note Rate - THIS Remittance 10.84076% 10.69517% 10.94016%
69 Weighted Note Rate - NEXT Remittance 10.83755% 10.69275% 10.93605%
70 Weighted Average Remaining Term 234.68 257.68 219.04
71 Accrual Period for Libor Rate 27-Jul-98 thru 24-Aug-98
72 Days in Related Period 29
73 Pass-Through Rate 5.91625% 5.92625%
<CAPTION>
Group 1 Subpool 1 Subpool 2
-------------- -------------- --------------
<S> <C> <C> <C>
74 Original Pool - Principal Balance 180,932,515.76 70,000,198.22 110,932,317.54
75 Original Pool - Pre-Funding Account 71,848,070.66 31,112,036.36 40,736,034.30
76 Original Pool - Initial Overcollateralization 2,780,586.42 1,112,234.58 1,668,351.84
-------------- -------------- --------------
77 Original Pool Total 250,000,000.00 100,000,000.00 150,000,000.00
-------------- -------------- --------------
78 Original Pool - Number of Loans 2,841 1,000 1,841
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Beg.of Month Current Month End of Month
-------------- -------------- --------------
CLASS 1A-1 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
<S> <C> <C> <C>
79 Initial Overcollateralization 1,906,559.26 438,065.50 2,344,624.75
80 Less: Realized Losses, LTD 0.00 0.00 0.00
81 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
-------------- -------------- --------------
82 Overcollateralization of Principal 1,906,559.26 438,065.50 2,344,624.75
============== ============== ==============
83 Base Overcollateralization Required* 6,268,958.54
84 Required Overcollateralization Amount 6,268,958.54
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Beg.of Month Current Month End of Month
-------------- -------------- --------------
CLASS 1A-2 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
<S> <C> <C> <C>
85 Initial Overcollateralization 4,295,405.74 472,401.49 4,767,807.24
86 Less: Realized Losses, LTD 0.00 0.00 0.00
87 Cross Coallateralzation Deposit, LTD 0.00 0.00 0.00
-------------- -------------- --------------
88 Overcollateralization of Principal 4,295,405.74 472,401.49 4,767,807.24
============== ============== ==============
89 Base Overcollateralization Required* 9,403,437.82
90 Required Overcollateralization Amount 9,403,437.82
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Beg.of Month Current Month End of Month
-------------- -------------- --------------
CURRENT MONTH SUBORDINATED AMOUNT
---------------------------------
<S> <C> <C> <C>
91 Original Group 1 Subordinated Amount* 31,850,353.89 N/A 31,850,353.89
92 Less: Group 1 Cumulative Realized Losses 0.00 0.00 0.00
93 Plus: Group 1 Cumulative Additional Proceeds 0.00 0.00 0.00
-------------- -------------- --------------
94 Current Group 1 Subordinated Amount 31,850,353.89 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 August 25, 1998, the Remittance date.
Due period ended: August 1, 1998
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Group 1
--------------
<S> <C>
NONRECOVERABLE ADVANCE RECONCILIATION
-------------------------------------
95 Beginning of Month 0.00
96 Current Month Unpaid Nonrecoverable Advance 0.00
97 Less: Current Month Reimbursement 0.00
--------------
98 End of Month 0.00
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Group 1 Class 1A-1 Class 1A-2
-------------- -------------- --------------
CLASS FACTORS
-------------
<S> <C> <C> <C>
99 Total Class Principal - Original Pool 250,000,000.00 100,000,000.00 150,000,000.00
10 Interest Remittance Amount 1,139,574.66 464,791.74 674,782.92
101 Interest Rate Factor / 1000 4.558299 4.647917 4.498553
102 Total Principal Collections 2,858,208.46 1,375,209.12 1,482,999.34
103 Prefunding Account Excess 0.00 0.00 0.00
104 Additional Principal Reduction 910,466.99 438,065.50 472,401.49
-------------- -------------- --------------
105 Principal Remittance Amount 3,768,675.45 1,813,274.62 1,955,400.83
106 Principal Payment Factor/1000 15.074702 18.132746 13.036006
107 Current Month Ending Principal Factor 940.416312 957.118211 929.281711
108 Prior Month Ending Principal Factor 955.491014 975.250957 942.317717
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
Page 1 of 4
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 August 25, 1998, the Remittance date.
Due period ended: August 1, 1998
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Group 2 Sub-Pool 3 Sub-Pool 4
-------------- ------------- --------------
<S> <C> <C> <C>
COLLECTIONS
-----------
1 Total Actual Principal Collections 3,724,858.91 1,061,097.03 2,663,761.88
2 Total Actual Interest Collections 1,429,542.48 429,386.35 1,000,156.13
3 Service Fees Previously Remitted 90,781.65 27,582.72 63,198.93
4 Additional Proceeds 0.00 0.00 0.00
-------------- ------------- --------------
5 TOTAL COLLECTIONS: 5,063,619.74 1,462,900.66 3,600,719.08
MONTHLY ADVANCES
----------------
6 Delinquent Interest Advance 206,413.77 25,817.25 180,596.52
7 Compensating Interest 14,912.47 5,532.45 9,380.02
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: 5,284,945.98 1,494,250.36 3,790,695.62
FEES
----
12 Service Fees 0.00 0.00 0.00
13 Expense Account Deposit: 4,592.87 1,278.37 3,314.50
-------------- ------------- --------------
14 ADJUSTED REMITTANCE AMOUNT: 5,280,353.11 1,492,971.99 3,787,381.12
REMAINING AMOUNT AVAILABLE:
15 Adjusted Remittance Amount 5,280,353.11
16 Insured Payments due 0.00
17 Insurance Account Deposit @ 13 bp
the Ending Principal Balance 19,902.44
18 Cross Collateral Withdrawal 0.00
19 Class Remittance Amounts 5,260,450.67
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 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 August 25, 1998, the Remittance date.
Due period ended: August 1, 1998
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
COLLECTIONS
Group 2 Class 2A-1 Class 2A-2 Class R
-------------- ------------- -------------- ---------
<S> <C> <C> <C> <C>
28 Loans Outstanding - BOM 1,697 570 1,127
29 Original Loan Balance 193,560,182.87 53,755,716.98 139,804,465.89
30 Initial Overcollaterization 6,120,477.74 1,559,744.88 4,560,732.86
31 Realized Losses, LTD 0.00 0.00 0.00
32 Carryforward Amount 0.00 0.00 0.00
-------------- ------------- --------------
33 Total Class Principal Balance 187,439,705.13 52,195,972.10 135,243,733.03
34 Pool Factor per Loan Balance 96.7800914% 26.8778585% 69.9022329%
35 Pool Factor per Class Balance 93.7198526% 26.0979860% 67.6218665%
36 Excess Spread 0.00 0.00
37 Principal Collection Factor 100.0000000% 28.4869053% 71.5130947%
38 Additional Principal due 651,758.91 185,665.94 466,092.97
39 Cross Collateral Withdrawal 0.00 0.00
40 Cross Collateral Deposit 0.00 0.00 0.00
41 Interest Remittance @ Pass-Through Rate 883,832.85 245,815.84 638,017.01
Principal Reductions:
42 Prepayments - Number 32 12 20
43 Prepayments - Dollar 3,631,992.32 1,033,342.32 2,598,650.00
44 Delinquent Loans Repurchased - Number 0 0 0
45 Delinquent Loans Repurchased - Dollar 0.00 0.00 0.00
46 Net Liquidation Proceeds 0.00 0.00 0.00
47 Curtailments 0.00 0.00 0.00
48 Normal and Excess Payments 92,866.59 27,754.71 65,111.88
-------------- ------------- --------------
49 Principal Remittance 3,724,858.91 1,061,097.03 2,663,761.88
-------------- ------------- --------------
50 Total Principal Remittance 3,724,858.91 1,061,097.03 2,663,761.88
51 Additional Principal Reduction 651,758.91 185,665.94 466,092.97
-------------- ------------- -------------- ---------
52 TOTAL REMITTANCE 5,260,450.67 1,492,578.81 3,767,871.86 0.00
============== ============= ============== =========
53 Current Month Realized Loss - Number 0 0 0 0
54 Current Month Realized Loss - Dollar 0.00 0.00 0.00 0.00
CLASS PRINCIPAL BALANCE - EOM
55 Loans Outstanding - EOM 1665 558 1107
56 Closing Loan Balance 189,835,323.96 52,694,619.95 137,140,704.01
58 Additional Principal Reduction, LTD 6,772,236.65 1,745,410.83 5,026,825.82
59 Realized Losses, LTD 0.00 0.00 0.00
-------------- ------------- --------------
60 Total Class Principal Balance 183,063,087.31 50,949,209.12 132,113,878.19
61 Pool Factor per Loan Balance 94.9176620% 26.3473100% 68.5703520%
62 Pool Factor per Class Balance 265.6816558% 25.4746046% 240.2070513%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
Page 3 of 4
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 August 25, 1998, the Remittance date.
Due period ended: August 1, 1998
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
63 Weighted Note Rate - THIS Remittance 10.29085% 10.30194% 10.28659%
64 Weighted Note Rate - NEXT Remittance 10.33024% 10.32511% 10.33221%
65 Weighted Average Remaining Term 353.20 353.42 353.12
66 Accrual Period for Libor Rate 27-Jul-98 thru 24-Aug-98
67 Days in Related Period 29
68 Pass-Through Rate 5.84625% 5.85625%
<CAPTION>
Group 2 Subpool 3 Subpool 4
-------------- ------------- --------------
<S> <C> <C> <C>
69 Original Pool - Principal Balance 142,610,986.32 49,999,948.51 92,611,037.81
70 Original Pool - Pre-Funding Account 61,055,001.48 6,008,198.14 55,046,803.34
71 Original Pool - Initial Overcollateralization 3,665,987.80 1,008,146.65 2,657,841.15
-------------- ------------- --------------
72 Original Pool Total 200,000,000.00 55,000,000.00 145,000,000.00
73 Original Pool - Number of Loans 1,271 531 740
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Beg.of Month Current Month End of Month
-------------- ------------- --------------
CLASS 2A-1 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
<S> <C> <C> <C>
74 Initial Overcollateralization 1,559,744.88 185,665.94 1,745,410.83
75 Less: Realized Losses, LTD 0.00 0.00 0.00
-------------- ------------- --------------
76 Overcollateralization of Principal 1,559,744.88 185,665.94 1,745,410.83
============== ============= ==============
77 Base Overcollateralization Required 2,968,431.77
78 Required Overcollateralization Amount 2,968,431.77
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Beg.of Month Current Month End of Month
-------------- ------------- --------------
CLASS 2A-2 OVERCOLLATERALIZATION RECONCILIATION
-----------------------------------------------
<S> <C> <C> <C>
79 Initial Overcollateralization 4,560,732.86 466,092.97 5,026,825.82
80 Less: Realized Losses, LTD 0.00 0.00 0.00
-------------- ------------- --------------
81 Overcollateralization of Principal 4,560,732.86 466,092.97 5,026,825.82
============== ============= ==============
82 Base Overcollateralization Required 7,825,865.58
83 Required Overcollateralization Amount 7,825,865.58
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Beg.of Month Current Month End of Month
-------------- ------------- --------------
CURRENT MONTH SUBORDINATED AMOUNT
---------------------------------
<S> <C> <C> <C>
84 Original Group 2 Subordinated Amount* 24,134,419.55 N/A 24,134,419.55
85 Less: Group 2 Cumulative Realized Losses 0.00 0.00 0.00
86 Plus: Group 2 Cumulative Additional Proceeds 0.00 0.00 0.00
-------------- ------------- --------------
87 Current Group 2 Subordinated Amount 24,134,419.55 0.00 24,134,419.55
============== ============= ==============
* 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 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 August 25, 1998, the Remittance date.
Due period ended: August 1, 1998
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Group 2
--------------
NONRECOVERABLE ADVANCE RECONCILIATION
-------------------------------------
<S> <C>
88 Beginning of Month 0.00
89 Current Month Unpaid Nonrecoverable Advance 0.00
90 Less: Current Month Reimbursement 0.00
--------------
91 End of Month 0.00
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Group 2 Class 1A-1 Class 1A-2
-------------- ------------- --------------
CLASS FACTORS
-------------
<S> <C> <C> <C>
92 Total Class Principal - Original Pool 200,000,000.00 55,000,000.00 145,000,000.00
93 Interest Remittance Amount 883,832.85 245,815.84 638,017.01
94 Interest Rate Factor / 1000 4.419164 4.469379 4.400117
95 Total Principal Collections 3,724,858.91 1,061,097.03 2,663,761.88
96 Prefunding Account Excess 0.00 0.00 0.00
97 Additional Principal Reduction 651,758.91 185,665.94 466,092.97
-------------- ------------- --------------
98 Principal Remittance Amount 4,376,617.82 1,246,762.97 3,129,854.85
99 Principal Payment Factor/1000 21.883089 22.668418 21.585205
100 Current Month Ending Principal Factor 915.315437 926.349256 911.130199
101 Prior Month Ending Principal Factor 937.198526 949.017674 932.715404
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
