<PAGE>
Information contained herein is subject to completion. These securities may not
be sold nor may offers to buy be accepted prior to the time a final Prospectus
Supplement and the related Prospectus is delivered. This Prospectus Supplement
and the related Prospectus shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these securities
in any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such
jurisdiction.
<PAGE>
Filed Pursuant to Rule 424(b)(5).
Registration No. 333-37717
SUBJECT TO COMPLETION, DATED AUGUST 11, 1998
PRELIMINARY PROSPECTUS SUPPLEMENT (TO PROSPECTUS DATED DECEMBER 17, 1997)
$
(APPROXIMATE)
GMAC COMMERCIAL MORTGAGE SECURITIES, INC.
DEPOSITOR
GMAC COMMERCIAL MORTGAGE CORPORATION
SERVICER
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1998-C2
The Series 1998-C2 Mortgage Pass-Through Certificates (the "Certificates")
will consist of the following 18 classes (each, a "Class"): (i) the Class X
Certificates; (ii) the Class A-1 Certificates and Class A-2 Certificates
(together, the "Class A Certificates", and collectively with the Class X
Certificates, the "Senior Certificates"); (iii) the Class B, Class C, Class D,
Class E, Class F, Class G, Class H, Class J, Class K, Class L, Class M and Class
N Certificates (collectively, the "Subordinate Certificates;" and collectively
with the Senior Certificates, the "REMIC Regular Certificates"); and (iv) the
Class R-I, Class R-II and Class R-III Certificates (the "REMIC Residual
Certificates"). Only the Senior Certificates and the Class B, Class C, Class D
and Class E Certificates (collectively, the "Offered Certificates") are offered
hereby. The respective Classes of Offered Certificates will be issued with the
respective Certificate Balances and Pass-Through Rates set forth or otherwise
described in the table on the cover page hereof.
(COVER CONTINUED ON NEXT PAGE)
PROCEEDS OF THE ASSETS IN THE TRUST FUND ARE THE SOLE SOURCE OF PAYMENTS ON THE
OFFERED CERTIFICATES. THE OFFERED CERTIFICATES DO NOT REPRESENT AN INTEREST
IN OR OBLIGATION OF THE DEPOSITOR, GMAC COMMERCIAL MORTGAGE CORPORATION OR
ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THE OFFERED CERTIFICATES
NOR THE MORTGAGE LOANS ARE INSURED OR GUARANTEED BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY OR BY THE DEPOSITOR,
GMAC COMMERCIAL MORTGAGE CORPORATION OR ANY OF THEIR
RESPECTIVE AFFILIATES.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS SUPPLEMENT
OR THE PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
THE ATTORNEY GENERAL OF THE STATE OF NEW YORK HAS NOT PASSED UPON OR ENDORSED
THE MERITS OF THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS
UNLAWFUL.
PROSPECTIVE INVESTORS SHOULD REVIEW THE INFORMATION APPEARING UNDER THE
CAPTION "RISK FACTORS" BEGINNING ON PAGE S-22 HEREIN AND PAGE 13 IN THE
PROSPECTUS BEFORE PURCHASING ANY OFFERED CERTIFICATE.
<TABLE>
<CAPTION>
INITIAL ASSUMED FINAL
CERTIFICATE INITIAL DISTRIBUTION
CLASS BALANCE (1) PASS-THROUGH RATE DATE(2) CUSIP NO. EXPECTED RATING
- ---------------------------- ---------------- ------------------ ------------------- ----------- -------------------
<S> <C> <C> <C> <C> <C>
Class X..................... (3) (4) AAA
Class A-1................... AAA
Class A-2................... AAA
Class B..................... AA
Class C..................... A
Class D..................... BBB
Class E..................... BBB-
</TABLE>
(footnotes on page S-2)
The Offered Certificates will be purchased from the Depositor by Lehman
Brothers Inc. ("Lehman") and Deutsche Bank Securities Inc. ("Deutsche" and with
Lehman, the "Underwriters"), with Lehman and Deutsche as co-lead managers and
Lehman as sole bookrunner, and will be offered by the Underwriters from time to
time in negotiated transactions or otherwise at varying prices to be determined
at the time of sale. Proceeds to the Depositor from the sale of the Offered
Certificates, before deducting expenses payable by the Depositor estimated to be
approximately $ , will be % of the initial aggregate Certificate
Balance of the Offered Certificates, plus accrued interest. The Offered
Certificates are offered by the Underwriters subject to prior sale, when, as and
if delivered to and accepted by the Underwriters and subject to certain other
conditions.
It is expected that the Offered Certificates will be delivered in book-entry
form through the Same-Day Funds Settlement System of DTC, Cedel Bank, societe
anonyme, and the Euroclear System on or about August , 1998 (the "Delivery
Date"), against payment therefor in immediately available funds.
LEHMAN BROTHERS DEUTSCHE BANK SECURITIES
The date of this Prospectus Supplement is August , 1998.
<PAGE>
(THE FOOTNOTES TO THE TABLE ON THE COVER PAGE ARE AS FOLLOWS)
- ------------------------
(1) Subject to a variance of plus or minus 5%.
(2) The "Assumed Final Distribution Date" with respect to any Class of Offered
Certificates is the Distribution Date (as defined herein) on which the final
distribution would occur for such Class of Certificates based upon the
assumption that no Mortgage Loan is prepaid prior to its stated maturity
(except for ARD Loans (as defined herein), which are assumed to be repaid in
full on their respective Anticipated Repayment Dates (as defined herein))
and otherwise based on the Maturity Assumptions (as described herein). The
actual performance and experience of the Mortgage Loans will likely differ
from such assumptions. The Rated Final Distribution Date (as defined herein)
for each Class of Principal Balance Certificates (as defined herein) is the
Distribution Date in . See "Yield and Maturity Considerations" herein.
(3) The Class X Certificates will not have a Certificate Balance and will accrue
interest on the Notional Amount (as defined herein) thereof, which is equal
to the aggregate Certificate Balance of the Principal Balance Certificates.
(4) Approximate initial Pass-Through Rate. The Pass-Through Rate applicable to
the Class X Certificates for each Distribution Date subsequent to the
initial Distribution Date will be equal to the weighted average (by
Certificate Balance of the corresponding Class of Principal Balance
Certificates) of the Pass-Through Rates applicable to each Class X Component
(as defined herein). The Pass-Through Rate for each Class X Component will
equal the excess, if any, of the Weighted Average Net Mortgage Rate (as
defined herein) for such Distribution Date over the Pass-Through Rate for
such Distribution Date applicable to the related Class of Principal Balance
Certificates. See "Description of the Certificates."
(COVER CONTINUED FROM PRECEDING PAGE)
The Certificates will represent the entire beneficial ownership interest in
a trust fund (the "Trust Fund") to be established by the Depositor, the assets
of which will consist primarily of a segregated pool (the "Mortgage Asset Pool")
of multifamily and commercial mortgage loans (the "Mortgage Loans"). The Cut-off
Date with respect to each of the Mortgage Loans is its Due Date in August 1998.
As of the applicable Cut-off Date for such Mortgage Loans, the Mortgage Loans
had an aggregate principal balance (the "Initial Pool Balance") of
$2,563,948,705 after application of all payments of principal due on or before
such date, whether or not received, and subject to a variance of plus or minus
5%. Certain characteristics of the Mortgage Loans are described herein under
"Description of the Mortgage Asset Pool."
As described herein, three separate REMIC elections will be made with
respect to the Trust Fund for federal income tax purposes (the REMICs formed
thereby being herein referred to as "REMIC I," "REMIC II" and "REMIC III,"
respectively). The Offered Certificates will evidence "regular interests" in
REMIC III, and will also evidence undivided beneficial interests in the portion
of the Trust Fund consisting of any Excess Interest collected on the ARD Loans.
Such portion of the Trust Fund consisting of Excess Interest (as defined herein)
will constitute a separate grantor trust for federal income tax purposes. See
"Certain Federal Income Tax Consequences" herein and in the Prospectus.
Distributions on the Certificates will be made, to the extent of available
funds, on each Distribution Date (as defined herein) beginning in September
1998. As described herein, interest distributions on each Class of Offered
Certificates will be made on each Distribution Date based on the Pass-Through
Rate then applicable to such Class and the Certificate Balance or Notional
Amount, as the case may be, of such Class outstanding immediately prior to such
Distribution Date. Distributions allocable to principal of the respective
Classes of Certificates with Certificate Balances (the "Principal Balance
Certificates") will be made in the amounts and in accordance with the priorities
described herein until the Certificate Balance of each such Class is reduced to
zero. The Class X Certificates will not have a Certificate Balance or entitle
the holders thereof to receive distributions of principal. As described herein,
any Prepayment Premiums or Excess Interest (as defined herein) actually
collected on the Mortgage Loans
S-2
<PAGE>
will, in general, be distributed among certain of the Classes of Certificates in
the amounts and in accordance with the priorities described herein. See
"Description of the Certificates--Distributions" herein.
As and to the extent described herein, the Subordinate Certificates will be
subordinate to the Senior Certificates; and each Class of Subordinate
Certificates will be subordinate to each other class of Subordinate
Certificates, if any, with an earlier alphabetical Class designation. The REMIC
Residual Certificates will be subordinate to the REMIC Regular Certificates. See
"Description of the Certificates-- Distributions" and "--Subordination;
Allocation of Losses and Certain Expenses" herein.
The yield to maturity of each Class of Offered Certificates will depend on,
among other things, the rate and timing of principal payments (including by
reason of or as affected by prepayments, loan extensions, repurchases, defaults
and liquidations) and losses on or in respect of the Mortgage Loans that result
in a reduction of the Certificate Balance or Notional Amount of such Class. The
yield to maturity of the Class X Certificates will be highly sensitive to the
rate and timing of principal payments (including by reason of or as affected by
prepayments, loan extensions, repurchases, defaults and liquidations) and losses
on or in respect of the Mortgage Loans, which rate and timing of principal
payments and losses may fluctuate significantly from time to time. A rate of
principal prepayments on the Mortgage Loans that is more rapid than expected by
investors may have a material negative effect on the yield to maturity of the
Class X Certificates. Investors in the Class X Certificates should consider the
associated risks, including the risk that a rapid rate of principal prepayments
on the Mortgage Loans could result in the failure of investors in such
Certificates to recover fully their initial investments. See "Yield and Maturity
Considerations" herein and "Yield and Maturity Considerations" and "Risk
Factors--Yield and Prepayment Considerations" in the Prospectus.
See "Index of Principal Definitions" in the Prospectus for the location of
meanings of capitalized terms used but not defined herein. See "Index of
Principal Terms" herein for location of meanings of other capitalized terms used
herein.
There is currently no secondary market for the Offered Certificates. The
Underwriters currently intend to make a secondary market in the Offered
Certificates, but are not obligated to do so. There can be no assurance that a
secondary market for the Offered Certificates will develop or, if it does
develop, that it will continue. The Offered Certificates will not be listed on
any securities exchange.
THE CERTIFICATES OFFERED BY THIS PROSPECTUS SUPPLEMENT CONSTITUTE PART OF A
SEPARATE SERIES OF CERTIFICATES ISSUED BY THE DEPOSITOR AND ARE BEING OFFERED
PURSUANT TO ITS PROSPECTUS DATED DECEMBER 17, 1997, OF WHICH THIS PROSPECTUS
SUPPLEMENT IS A PART AND WHICH ACCOMPANIES THIS PROSPECTUS SUPPLEMENT. THE
PROSPECTUS CONTAINS IMPORTANT INFORMATION REGARDING THIS OFFERING THAT IS NOT
CONTAINED HEREIN, AND PROSPECTIVE INVESTORS ARE URGED TO READ THE PROSPECTUS AND
THIS PROSPECTUS SUPPLEMENT IN FULL. SALES OF THE OFFERED CERTIFICATES MAY NOT BE
CONSUMMATED UNLESS THE PURCHASER HAS RECEIVED BOTH THIS PROSPECTUS SUPPLEMENT
AND THE PROSPECTUS.
UNTIL NOVEMBER , 1998 ALL DEALERS EFFECTING TRANSACTIONS IN THE OFFERED
CERTIFICATES, WHETHER OR NOT PARTICIPATING IN THIS DISTRIBUTION, MAY BE REQUIRED
TO DELIVER A PROSPECTUS SUPPLEMENT AND THE PROSPECTUS TO WHICH IT RELATES. THIS
DELIVERY REQUIREMENT IS IN ADDITION TO THE OBLIGATION OF DEALERS TO DELIVER A
PROSPECTUS SUPPLEMENT AND PROSPECTUS WHEN ACTING AS UNDERWRITERS AND WITH
RESPECT TO THEIR UNSOLD ALLOTMENTS OR SUBSCRIPTIONS.
S-3
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
---------
<S> <C>
TRANSACTION OVERVIEW..................................................................................... S-6
SUMMARY OF PROSPECTUS SUPPLEMENT......................................................................... S-8
RISK FACTORS............................................................................................. S-22
The Certificates......................................................................................... S-22
The Mortgage Loans....................................................................................... S-22
DESCRIPTION OF THE MORTGAGE ASSET POOL................................................................... S-33
General.................................................................................................. S-33
Certain Terms and Conditions of the Mortgage Loans....................................................... S-33
Additional Mortgage Loan Information..................................................................... S-38
Significant Mortgage Loans............................................................................... S-38
The Mortgage Loan Sellers................................................................................ S-50
Certain Underwriting Matters............................................................................. S-50
Assignment of the Mortgage Loans; Repurchases and Substitutions.......................................... S-52
Representations and Warranties; Repurchases.............................................................. S-53
Pool Characteristics; Changes in Mortgage Asset Pool..................................................... S-56
SERVICING OF THE MORTGAGE LOANS.......................................................................... S-57
General.................................................................................................. S-57
The Servicer............................................................................................. S-58
Termination of the Servicer with Respect to Specially Serviced Mortgage Loans and REO Properties......... S-58
Servicing and Other Compensation and Payment of Expenses................................................. S-59
Modifications, Waivers, Amendments and Consents.......................................................... S-62
Sale of Defaulted Mortgage Loans......................................................................... S-63
REO Properties........................................................................................... S-64
Inspections; Collection of Operating Information......................................................... S-65
DESCRIPTION OF THE CERTIFICATES.......................................................................... S-66
General.................................................................................................. S-66
Book-Entry Registration of the Offered Certificates...................................................... S-67
Certificate Balances and Notional Amounts................................................................ S-69
Pass-Through Rates....................................................................................... S-70
Distributions............................................................................................ S-71
Subordination; Allocation of Losses and Certain Expenses................................................. S-76
P&I Advances............................................................................................. S-77
Appraisal Reductions..................................................................................... S-78
Reports to Certificateholders; Certain Available Information............................................. S-79
Voting Rights............................................................................................ S-82
Termination; Retirement of Certificates.................................................................. S-82
The Trustee and the Fiscal Agent......................................................................... S-82
YIELD AND MATURITY CONSIDERATIONS........................................................................ S-83
Yield Considerations..................................................................................... S-83
Weighted Average Life.................................................................................... S-85
Certain Price/Yield Tables............................................................................... S-90
Yield Sensitivity of the Class X Certificates............................................................ S-91
CERTAIN FEDERAL INCOME TAX CONSEQUENCES.................................................................. S-93
General.................................................................................................. S-93
Original Issue Discount and Premium...................................................................... S-93
Characterization of Investments in Offered Certificates.................................................. S-95
</TABLE>
S-4
<PAGE>
<TABLE>
<CAPTION>
PAGE
---------
<S> <C>
METHOD OF DISTRIBUTION................................................................................... S-95
LEGAL MATTERS............................................................................................ S-96
RATINGS.................................................................................................. S-97
LEGAL INVESTMENT......................................................................................... S-98
ERISA CONSIDERATIONS..................................................................................... S-98
INDEX OF PRINCIPAL TERMS................................................................................. S-99
Annex A-1................................................................................................ A-1-1
Annex A-2................................................................................................ A-2-1
Annex B.................................................................................................. B-1
Annex C.................................................................................................. C-1
Annex D.................................................................................................. D-1
</TABLE>
S-5
<PAGE>
TRANSACTION OVERVIEW
Prospective investors are advised to carefully read, and should rely solely
on, the detailed information appearing elsewhere in this Prospectus Supplement
and the Prospectus relating to the Offered Certificates in making their
investment decision. The following Transaction Overview does not include all
relevant information relating to the securities and collateral described herein,
particularly with respect to the risks and special considerations involved with
an investment in such securities and is qualified in its entirety by reference
to the detailed information appearing elsewhere in this Prospectus Supplement
and the Prospectus. Prior to making an investment decision, a prospective
investor should carefully review this Prospectus Supplement and the Prospectus.
Capitalized terms used and not otherwise defined herein have the respective
meanings assigned to them in this Prospectus Supplement and the Prospectus. See
"Index of Principal Terms" in this Prospectus Supplement and "Index of Principal
Definitions" in the Prospectus.
<TABLE>
<CAPTION>
INITIAL
CERTIFICATE PERCENT OF
BALANCE OF INITIAL DESCRIPTION OF INITIAL
EXPECTED NOTIONAL POOL PASS-THROUGH PASS-THROUGH
CLASS RATINGS AMOUNT BALANCE SUBORDINATION (C) RATE RATE
- ------------- ------------- --------------- --------------- --------------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Class X...... AAA (b)
Class A-1.... AAA
Class A-2.... AAA
Class B...... AA
Class C...... A
Class D...... BBB
Class E...... BBB -
Class F...... (a)
Class G...... (a)
Class H...... (a)
Class J...... (a)
Class K...... (a)
Class L...... (a)
Class M...... (a)
Class N...... (a)
<CAPTION>
WEIGHTED PRINCIPAL
AVG. LIFE (D) WINDOW (D)
CLASS (YEARS) (MONTH/YEAR)
- ------------- ----------------- -----------------
<S> <C> <C>
Class X......
Class A-1....
Class A-2....
Class B......
Class C......
Class D......
Class E......
Class F......
Class G......
Class H......
Class J......
Class K......
Class L......
Class M......
Class N......
</TABLE>
- ------------------------
(a) Not offered hereby.
(b) Notional Amount.
(c) Reflects aggregate of Certificate Balances of all Classes of Certificates
that, as of the Delivery Date, are subordinate to the specified Class,
expressed as a percentage of the Initial Pool Balance.
(d) The weighted average life and period during which distributions of principal
would be received (the "Principal Window") set forth in the foregoing table
with respect to each Class of REMIC Regular Certificates is based on the
assumptions that there are no prepayments on the Mortgage Loans (except that
the ARD Loans are paid in full on their respective Anticipated Repayment
Dates) and otherwise on the basis of the Maturity Assumptions (as defined
herein). See "Yield and Maturity Considerations" herein. With respect to the
Class X Certificates, the Principal Window is the period during which
distributions of interest would be received based upon the foregoing
assumptions.
S-6
<PAGE>
Set forth below is certain information regarding the Mortgage Loans and the
Mortgaged Properties as of the Cut-off Date (all weighted averages set forth
below are based on the Cut-off Date Balances (as defined herein) of the Mortgage
Loans). Such information is described, and additional information regarding the
Mortgage Loans and the Mortgaged Properties is set forth, under "Description of
the Mortgage Asset Pool" herein and in Annex A hereto.
MORTGAGE POOL CHARACTERISTICS
<TABLE>
<CAPTION>
CHARACTERISTICS ENTIRE MORTGAGE POOL
- ---------------------------------------------- ----------------------------------------------
<S> <C>
Initial Pool Balance $2,563,948,705
Number of Mortgage Loans 408
Number of Mortgaged Properties 520
Average Cut-off Date Balance $6,284,188
Weighted Average Mortgage Rate 7.089%
Weighted Average Remaining Term to Maturity or
Anticipated Repayment Date 135 months
Weighted Average Debt Service Coverage Ratio 1.65x*
Weighted Average Cut-off Date LTV Ratio 65.97%*
</TABLE>
"Cut-off Date LTV Ratio" and "Underwritten NCF DSCR" are calculated as
described in Annex A hereto.
- ------------------------
* Calculated without regard to the Credit Lease Loans (as defined herein).
S-7
<PAGE>
SUMMARY OF PROSPECTUS SUPPLEMENT
The following summary is qualified in its entirety by reference to the
detailed information appearing elsewhere in this Prospectus Supplement and in
the accompanying Prospectus. Certain capitalized terms that are used in this
Summary may be defined elsewhere in this Prospectus Supplement, including on
Annex A hereto, or in the Prospectus. An "Index of Principal Terms" is included
at the end of both this Prospectus Supplement and the Prospectus. Terms that are
used but not defined in this Prospectus Supplement will have the meanings
specified in the Prospectus.
<TABLE>
<S> <C>
Title of Certificates.................. Mortgage Pass-Through Certificates, Series 1998-C2.
Depositor.............................. GMAC Commercial Mortgage Securities, Inc. See "The
Depositor" in the Prospectus.
Servicer............................... GMAC Commercial Mortgage Corporation. See
"Servicing of the Mortgage Loans--The Servicer"
herein.
Trustee................................ LaSalle National Bank. See "Description of the
Certificates--The Trustee and the Fiscal Agent"
herein.
Mortgage Loan Sellers.................. On or before the Delivery Date, the Depositor will
acquire the Mortgage Loans that are to constitute
the Trust Fund. All of the Mortgage Loans to be
sold or contributed to the Depositor were
originated or acquired by GMAC Commercial Mortgage
Corporation ("GMACCM"), an affiliate of the
Depositor, or by an affiliate of Lehman Brothers
Inc. (the "Lehman Seller"), one of the
Underwriters. GMACCM and the Lehman Seller are
sometimes collectively referred to as the "Mortgage
Loan Sellers". Each Mortgage Loan Seller will make
certain representations and warranties with respect
to its Mortgage Loans, and all such representations
and warranties will be assigned by the Depositor to
the Trustee. See "Description of the Mortgage Asset
Pool-- The Mortgage Loan Sellers" herein.
Fiscal Agent........................... ABN AMRO Bank N.V., a Netherlands banking
corporation and the indirect corporate parent of
the Trustee. See "Description of the
Certificates--The Trustee and the Fiscal Agent"
herein.
Cut-off Date........................... For any Mortgage Loan, the Due Date for such
Mortgage Loan in August 1998.
Delivery Date.......................... On or about August , 1998.
Distribution Date...................... The 15th day of each month, or, if any such 15th
day is not a business day, then on the next
business day beginning on September 15, 1998 (the
"Distribution Date").
Record Date............................ With respect to any Distribution Date, the last
business day of the calendar month immediately
preceding the month in which such Distribution Date
occurs.
</TABLE>
S-8
<PAGE>
<TABLE>
<S> <C>
Interest Accrual Period................ With respect to any Distribution Date, the calendar
month immediately preceding the month in which such
Distribution Date occurs.
Registration and Denominations......... The Offered Certificates will be issued as
Book-Entry Certificates in denominations of: (i) in
the case of the Class X Certificates, $1,000,000
Notional Amount and in any whole dollar
denomination in excess thereof; and (ii) in the
case of the other Classes of Offered Certificates,
$25,000 actual principal amount and in any whole
dollar denomination in excess thereof. Each Class
of Offered Certificates will be represented by one
or more Certificates registered in the name of Cede
& Co., as nominee of DTC. Persons acquiring
beneficial ownership interests in the Offered
Certificates may elect to hold their book-entry
Certificate interests either through DTC in the
United States, or through Cedel Bank, societe
anonyme ("CEDEL") or the Euroclear System
("Euroclear") in Europe. Transfers within DTC,
CEDEL or Euroclear, as the case may be, will be in
accordance with the usual rules and operating
procedures of the applicable system. No Certificate
Owner acquiring an interest in any Class of Offered
Certificates will be entitled to receive a
Definitive Certificate of such Class, except under
the limited circumstances described herein. See
"Description of the Certificates--Book-Entry
Registration of the Offered Certificates" herein
and Annex D hereto and "Description of the
Certificates--Book-Entry Registration and
Definitive Certificates" in the Prospectus.
The Mortgage Asset Pool................ The Mortgage Asset Pool will consist of four
hundred and eight (408) fixed rate Mortgage Loans,
with an Initial Pool Balance of $2,563,948,705,
subject to a variance of plus or minus 5%. All
numerical information provided herein with respect
to the Mortgage Loans is provided on an approximate
basis.
The Cut-off Date Balances (as defined herein) of
the Mortgage Loans will range from $440,000 to
$199,846,047, and the average Cut-off Date Balance
will be $6,284,188.
Each Mortgage Loan is secured by a first mortgage
lien on a fee simple and/or leasehold interest in
one or more Mortgaged Properties used for
commercial or multifamily residential purposes.
Substantially all of the Mortgage Loans constitute
nonrecourse obligations of the related borrower,
and prospective investors should thus consider all
of the Mortgage Loans to be nonrecourse. None of
the Mortgage Loans is insured or guaranteed by the
United States, any governmental agency or
instrumentality or
</TABLE>
S-9
<PAGE>
<TABLE>
<S> <C>
any private mortgage insurer. See Description of
the Mortgage Asset Pool--General" herein.
Set forth below are the number of Mortgaged
Properties and the approximate percentage of the
Initial Pool Balance represented by the related
Mortgage Loans, that are located in the five states
with the highest principal balance concentrations:
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE
NUMBER OF OF INITIAL
STATE MORTGAGE LOANS POOL BALANCE
- --------------------------- ----------------- -------------------
<S> <C> <C>
California 80 16.79%
New Jersey 21 6.56%
Florida 43 5.28%
Texas 43 5.08%
Connecticut 53 4.33%
</TABLE>
<TABLE>
<S> <C>
The remaining Mortgaged Properties are located
throughout 39 other states and the District of
Columbia.
Set forth below are the number of Mortgaged
Properties and the approximate percentage of the
Initial Pool Balance represented by the related
Mortgage Loans, that are operated for each
indicated purpose:
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF PERCENTAGE OF
MORTGAGED INITIAL
PROPERTY TYPE PROPERTIES POOL BALANCE
- --------------------------- ----------------- -------------------
<S> <C> <C>
Multifamily(1) 150 29.89%
Anchored Retail(2) 51 15.75%
Office 86 15.25%
Unanchored Retail(2) 67 9.95%
Hospitality 26 9.30%
Industrial 51 3.76%
Skilled Nursing 15 4.52%
Self Storage 25 1.95%
Mixed Use 1 1.81%
Independent/Assisted
Living/Congregate Care 10 1.64%
Office/Industrial 7 1.28%
Other 2 0.25%
- --------------
(1)Multifamily includes 27 Manufactured Housing Mortgaged
Properties securing Mortgage Loans which represent 5.32% of the
Initial Pool Balance.
(2)For a listing of the largest tenant, see Annex A.
</TABLE>
<TABLE>
<S> <C>
Twenty-nine (29) of the Mortgage Loans (the "Credit
Lease Loans") which represent 4.65% of the Initial
Pool Balance, are secured by Mortgages on Mortgaged
Properties that are, in each case, subject to a
</TABLE>
S-10
<PAGE>
<TABLE>
<S> <C>
lease (a "Credit Lease") to a tenant (each a
"Tenant" and, collectively, the "Tenants") which
possesses (or whose parent or other affiliate
which, with one exception, guarantees the Credit
Lease obligation possesses) a public or private
rating from a nationally recognized statistical
rating organization. See "Description of the
Mortgage Asset Pool--Credit Lease Loans" herein.
Scheduled monthly rent payments (the "Monthly
Rental Payments") under the Credit Leases are
generally sufficient to pay in full and on a timely
basis all interest and principal scheduled to be
paid with respect to the related Credit Lease Loans
other than the Balloon Payments with respect to
Credit Lease Loans which are Balloon Loans.
The Credit Leases generally provide that the Tenant
is responsible for all costs and expenses incurred
in connection with the maintenance and operation of
the related Mortgaged Property. In general, in the
event of a casualty or condemnation of a material
portion of the related Mortgaged Property, either
(i) the Credit Lease provides that the Tenant must
make an offer to purchase the applicable Mortgaged
Property for an amount not less than the unpaid
principal balance plus accrued interest on the
related Credit Lease Loan or (ii) the Trustee on
behalf of the Certificateholders will have the
benefit of certain non-cancelable credit lease
enhancement insurance policies (the "Lease
Enhancement Policies") obtained to cover certain
casualty and/or condemnation risks. See
"Description of the Mortgage Asset Pool-- Credit
Lease Loans" herein.
All of the Mortgage Loans bear interest at Mortgage
Rates that are, in each case, fixed for the entire
remaining term of the Mortgage Loan, except that
the ARD Loans (as defined herein) will accrue
interest at the Revised Rate (as defined herein)
commencing on the Anticipated Repayment Date (as
defined herein). See "--Hyperamortization" below.
No Mortgage Loan (other than each ARD Loan) permits
negative amortization or the deferral of accrued
interest. See "Description of the Mortgage Asset
Pool--Certain Terms and Conditions of the Mortgage
Loans--Mortgage Rates; Calculations of Interest"
herein.
Three hundred eleven (311) of the Mortgage Loans
(the "Balloon Loans"), which represent 58.29% of
the Initial Pool Balance, provide for monthly
payments of principal based on amortization
schedules significantly longer than the remaining
terms of such Mortgage Loans (and, in some cases,
following an interest only period). As a result,
substantial principal amounts will be due and
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payable (each such payment, together with the
corresponding interest payment, a "Balloon
Payment") in respect of such Mortgage Loans on
their respective maturity dates, unless prepaid
prior thereto. Fifty-one (51) of the Mortgage
Loans, which represent 8.80% of the Initial Pool
Balance, are fully amortizing. Forty-six (46) of
the Mortgage Loans, which represent 32.91% of the
Initial Pool Balance, are ARD Loans (as defined
herein).
ARD LOANS. Forty-six (46) of the Mortgage Loans
(the "ARD Loans"), which represent 32.91% of the
Initial Pool Balance, provide for changes in the
accrual of interest and the payment of principal
thereon as of their respective Anticipated
Repayment Dates. The "Anticipated Repayment Date"
for any such ARD Loan is set forth on Annex A. If
the related borrower elects to prepay an ARD Loan
in full on the related Anticipated Repayment Date,
a substantial amount of principal will be due. If a
borrower elects not to prepay an ARD Loan on or
before its Anticipated Repayment Date, commencing
on such Anticipated Repayment Date, such ARD Loan
will bear interest at the Revised Rate (as defined
herein). Interest accrued on an ARD Loan at the
excess of the related Revised Rate over the
Mortgage Rate (compounded as described below, the
"Excess Interest") will be deferred until the
principal balance thereof is reduced to zero. If a
borrower elects not to prepay an ARD Loan on or
before its Anticipated Repayment Date, all or a
substantial portion of all monthly cash flow from
the related Mortgaged Property collected after such
date (exclusive of certain minimum debt service and
specified property expenses) will be applied to the
payment of principal on such ARD Loan and, after
the principal balance thereof has been reduced to
zero, to the payment of accrued and unpaid Excess
Interest. To the extent such Excess Interest is
unpaid, it will, except where limited by applicable
law, continue to accrue interest at the Revised
Rate. All of the ARD Loans for which a Lockbox
Account (as defined herein) has not been
established on or before the Delivery Date provide
that a Lockbox Account must be established as of
the applicable Anticipated Repayment Date or
shortly thereafter. See "Description of the
Mortgage Asset Pool-- Certain Terms and Conditions
of the Mortgage Loans-- Hyperamortization" herein.
CALL PROTECTION. All of the Mortgage Loans impose
some restriction on voluntary principal
prepayments, whether in the form of an absolute
prohibition or a requirement that any voluntary
principal prepayment be accompanied by a Prepayment
Premium. The prepayment terms of each of the
Mortgage Loans are
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described under "Description of the Mortgage Asset
Pool--Certain Terms and Conditions of the Mortgage
Loans--Prepayment Provisions" herein and on Annex A
hereto.
</TABLE>
<TABLE>
<CAPTION>
OVERVIEW OF CUT-OFF DATE CALL PROTECTION
NUMBER OF PERCENTAGE
MORTGAGE OF INITIAL
LOANS POOL BALANCE
Lock-out or defeasance 371 92.4
<S> <C> <C> <C>
Yield maintenance 36 6.2
Declining penalties 1 1.4
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DEFEASANCE. Three hundred and seventy-one (371)
Mortgage Loans, which represent 92.4% of the
Initial Pool Balance, permit the applicable
borrower, after a specified period and provided no
event of default exists, to obtain the release of
the related Mortgaged Property (or, in the case of
a Cross-Collateralized Mortgage Loan (as defined
herein) or a Mortgage Loan secured by more than one
Mortgaged Property, one or more of the related
Mortgaged Properties) from the lien of the related
Mortgage (a "Defeasance Option") upon the pledge to
the Trustee of noncallable U.S. government
obligations that provide payments on or prior to
all successive scheduled payment dates, including
the scheduled maturity date, upon which interest
and principal payments are due under the related
Mortgage Note and in amounts due on such dates, and
upon satisfaction of certain other conditions. For
purposes of the foregoing, ARD Loans are treated as
Balloon Loans that mature on their Anticipated
Repayment Date. For detailed statistical
information regarding the entire Mortgage Asset
Pool, see "Description of the Mortgage Asset
Pool--Certain Terms and Conditions of the Mortgage
Loans--Defeasance" herein and Annex A hereto.
Description of the Certificates........ The Certificates will be issued pursuant to a
Pooling and Servicing Agreement, to be dated as of
August 1, 1998, among the Depositor, the Servicer,
the Trustee and the Fiscal Agent (the "Pooling and
Servicing Agreement"), and will represent in the
aggregate the entire beneficial ownership interest
in the Trust Fund, which will consist of the
Mortgage Asset Pool and certain related assets.
Certificate Balances and Notional
Amounts.............................. Upon initial issuance, the Class A-1, Class A-2,
Class B, Class C, Class D and Class E Certificates
will have the respective Certificate Balances set
forth on the cover
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page hereof (in each case, subject to a variance of
plus or minus 5%).
The Class F, Class G, Class H, Class J, Class K,
Class L, Class M and Class N Certificates will have
an initial aggregate Certificate Balance equal to
the excess of the Initial Pool Balance over the
initial aggregate Certificate Balance of the Class
A-1, Class A-2, Class B, Class C, Class D and Class
E Certificates.
The Class X Certificates will not have a
Certificate Balance; such Class of Certificates
will instead represent the right to receive
distributions of interest accrued as described
herein on a Notional Amount. The Notional Amount of
the Class X Certificates at any time will equal the
aggregate Certificate Balance of the Principal
Balance Certificates at such time. The Notional
Amount of the Class X Certificates is used solely
for the purpose of determining the amount of
interest to be distributed on such Class of
Certificates and does not represent the right to
receive any distributions of principal. The Class X
Certificates consist of the Class X Components (as
defined herein) each corresponding to a different
Class of Principal Balance Certificates.
No Class of REMIC Residual Certificates will have a
Certificate Balance.
See "Description of the Certificates--Certificate
Balances and Notional Amounts" and
"--Distributions" herein.
Pass-Through Rates..................... The Pass-Through Rate applicable to the Class X
Certificates for the initial Distribution Date will
equal approximately % per annum. The
Pass-Through Rate applicable to the Class X
Certificates for each Distribution Date subsequent
to the initial Distribution Date will be equal to
the weighted average (by Certificate Balance of the
corresponding Class of Principal Balance
Certificates) of the Pass-Through Rates then
applicable to each Class X Component. The
Pass-Through Rate in respect of each Class X
Component for any Distribution Date will equal the
excess, if any, of the Weighted Average Net
Mortgage Rate (as defined herein) for such
Distribution Date over the Pass-Through Rate for
such Distribution Date applicable to the related
Class of Principal Balance Certificates.
The Pass-Through Rates applicable to the respective
Classes of the Principal Balance Certificates will,
in the case of each such Class, be fixed at the per
annum rate specified for such Class on page S-7
hereof.
No Class of REMIC Residual Certificates will have a
Pass-Through Rate.
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Distributions of Interest and Principal
on the Senior Certificates........... On each Distribution Date, to the extent of the
Available Distribution Amount (as defined herein)
for such date, the holders of the respective
Classes of Senior Certificates will be entitled to
receive distributions of interest, on a pro rata
basis, in an amount equal to all Distributable
Certificate Interest (as defined herein) in respect
of each such Class of Certificates for such
Distribution Date and, to the extent not previously
paid, for all prior Distribution Dates, if any.
On each Distribution Date, following all required
distributions of interest on the Senior
Certificates, the Trustee will apply the remaining
portion, if any, of the Available Distribution
Amount for such date to make payments of principal
on the respective Classes of Class A Certificates,
in the amounts and order described herein, up to an
aggregate amount equal to the lesser of (i) the
then aggregate of the outstanding Certificate
Balances of the Class A Certificates and (ii) the
Principal Distribution Amount (as defined herein)
for such Distribution Date (or, on the final
Distribution Date in connection with a termination
of the Trust Fund (see "Description of the
Certificates--Termination; Retirement of
Certificates" herein), up to an aggregate amount
equal to the aggregate of the then outstanding
Certificate Balances of the Class A Certificates).
See "Description of the Certificates--Distribu-
tions" herein.
Distributions of Interest and Principal
on the Class B, Class C, Class D and
Class E Certificates................. On each Distribution Date, following all required
distributions of interest and principal on the
Senior Certificates, the Trustee will apply the
remaining portion, if any, of the Available
Distribution Amount for such date to make payments
of interest and principal on the Class B, Class C,
Class D and Class E Certificates, in that order. On
each Distribution Date, the holders of each such
Class of Offered Certificates, to the extent of the
Available Distribution Amount remaining after all
required distributions of interest and principal on
the Senior Certificates and each other Class of
Offered Certificates, if any, with an earlier
alphabetical Class designation, will be entitled:
first, to distributions of interest up to an amount
equal to all Distributable Certificate Interest in
respect of such particular Class of Offered
Certificates for such Distribution Date and, to the
extent not previously paid, for all prior Distribu-
tion Dates, if any; and, then, if the Certificate
Balances of the Class A Certificates and each other
Class of Principal Balance Certificates, if any,
with an earlier alphabetical Class designation,
have been reduced to zero, to distributions of
principal up to an amount equal to the lesser of
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(i) the then outstanding Certificate Balance of
such particular Class of Offered Certificates and
(ii) the Principal Distribution Amount for such
Distribution Date (net of any portion of such
aggregate amount paid in retirement of the Class A
Certificates and/or any other Class of Principal
Balance Certificates with an earlier alphabetical
Class designation) (or, on the final Distribution
Date in connection with a termination of the Trust
Fund, up to an amount equal to the then outstanding
Certificate Balance of such particular Class of
Offered Certificates). See "Description of the
Certificates--Distributions" herein.
Distributions of Prepayment Premiums... Any Prepayment Premium actually collected with
respect to a Mortgage Loan during any particular
Collection Period (as defined herein) will be
distributed among certain Classes of Certificates
in the amounts and priorities described under
"Description of the Certificates--Distri-
butions--Distributions of Prepayment Premiums"
herein.
Distributions of Excess Interest....... If and to the extent collected, 95% of any Excess
Interest will be distributed PRO RATA (based on
their respective initial Certificate Balances),
among all the holders of the Class A-1, Class A-2,
Class B, Class C, Class D, Class E, Class F and
Class G Certificates, and the remainder of such
Excess Interest will be distributed to the holders
of the Class X Certificates. There can be no
assurance as to what extent Excess Interest will be
collected on the ARD Loans, if at all.
Certain Yield and Prepayment
Considerations....................... The yield on each Class of Offered Certificates
will depend on, among other things, the
Pass-Through Rate for such Certificates. The yield
on any Offered Certificate will also be affected by
the rate and timing of distributions in respect of
principal on such Certificate, which in turn will
be affected by (i) the rate and timing of principal
payments (including principal prepayments) on the
Mortgage Loans and (ii) the extent to which such
principal payments are applied on any Distribution
Date in reduction of the Certificate Balance of the
Class to which such Certificate belongs. See
"Description of the Certificates-- Distributions
--Application of the Available Distribution Amount"
and "--Distributions--Principal Distribution
Amount" herein.
An investor that purchases an Offered Certificate
at a discount should consider the risk that a
slower than anticipated rate of principal payments
on such Certificate will result in an actual yield
that is lower than such investor's expected yield.
An investor that purchases any Offered Certificate
at a premium should consider the risk that a faster
than anticipated rate of principal payments on such
Certificate will result in an actual yield that is
lower than
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S-16
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such investor's expected yield. Insofar as an
investor's initial investment in any Offered
Certificate is returned in the form of payments of
principal thereon, there can be no assurance that
such amounts can be reinvested in a comparable
alternative investment with a comparable yield.
The actual rate of prepayment of principal on the
Mortgage Loans cannot be predicted. The investment
performance of the Offered Certificates may vary
materially and adversely from the investment
expectations of investors due to prepayments on the
Mortgage Loans being higher or lower than
anticipated by investors. The actual yield to the
holder of an Offered Certificate may not be equal
to the yield anticipated at the time of purchase of
the Certificate. Further, notwithstanding that the
actual yield is equal to the yield anticipated at
that time, the total return on investment expected
by the investor or the expected weighted average
life of the Certificate may not be realized. For a
discussion of certain factors affecting prepayment
of the Mortgage Loans, including the effect of
Prepayment Premiums, see "Yield and Maturity Con-
siderations" herein. In deciding whether to
purchase any Offered Certificates, an investor
should make an independent decision as to the
appropriate prepayment assumptions to be used.
The Class X Certificates are interest-only
Certificates and are not entitled to any
distributions in respect of principal. The yield to
maturity of the Class X Certificates will be
especially sensitive to the prepayment, loan
extension, repurchase, default and liquidation
experience on the Mortgage Loans, which prepayment,
loan extension, repurchase, default and liquidation
experience may fluctuate significantly from time to
time. A rate of principal payments and liquidations
on the Mortgage Loans that is more rapid than
expected by investors may have a material negative
effect on the yield to maturity of the Class X
Certificates and may result in holders not
recouping their initial investments. The yield to
maturity of the Class X Certificates may be
adversely affected by the prepayment of Mortgage
Loans with higher Net Mortgage Rates. See "Yield
and Maturity Considerations--Yield Sensitivity of
the Class X Certificates" herein.
P&I Advances........................... The Servicer is required to make advances (each, a
"P&I Advance") of delinquent principal and interest
on the Mortgage Loans, under the circumstances and
subject to the limitations set forth herein. In no
event will the Servicer be required to advance the
full amount of any delinquent Balloon Payment. If
the Servicer fails to make a required P&I Advance,
the Trustee will be required to make such
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S-17
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P&I Advance, and if the Trustee fails to make a
required P&I Advance, the Fiscal Agent will be
required to make such P&I Advance, in each such
case subject to a determination of recoverability.
The Servicer, the Trustee and the Fiscal Agent will
each be entitled to interest on any P&I Advances
made and certain servicing expenses incurred by it
or on its behalf, such interest accruing at the
rate and payable under the circumstances described
herein. See "Description of the Certificates--P&I
Advances" herein and "Description of the
Certificates-- Advances in Respect of
Delinquencies" and "The Pooling and Servicing
Agreements--Certificate Account" in the Prospectus.
Subordination; Allocation of Losses and
Certain Expenses..................... The rights of the holders of the Subordinate
Certificates to receive distributions with respect
to the Mortgage Loans will be subordinate to the
rights of the holders of the Senior Certificates
and, further, in the case of any particular Class
of Subordinate Certificates, to the rights of the
holders of each other Class of Subordinate
Certificates, if any, with an earlier alphabetical
Class designation, in each case to the extent
described herein and in the Prospectus. In
addition, the rights of the holders of the REMIC
Residual Certificates to receive distributions with
respect to the Mortgage Loans will be subordinate
to the rights of the holders of the REMIC Regular
Certificates, to the extent described herein and in
the Prospectus. Such subordination will be
accomplished by the application of the Available
Distribution Amount on each Distribution Date to
distributions on the respective Classes of Certifi-
cates in the order described herein under
"Description of the
Certificates--Distributions--Application of the
Available Distribution Amount." No other form of
Credit Support will be available for the benefit of
the holders of the Offered Certificates.
If, following the distributions to be made in
respect of the Certificates on any Distribution
Date, the aggregate Stated Principal Balance of the
Mortgage Asset Pool that will be outstanding
immediately following such Distribution Date is
less than the then aggregate Certificate Balance of
the Principal Balance Certificates, the Certificate
Balances of the Subordinate Certificates will be
reduced, in reverse alphabetical order of Class
designation, until, in the case of each such Class
of Subordinate Certificates, such deficit (or the
related Certificate Balance) is reduced to zero
(whichever occurs first). If any portion of such
deficit remains outstanding at such time as the
aggregate Certificate Balance of the Subordinate
Certificates is reduced to zero, then the
respective Certificate Balances of the Class A-1
and Class A-2 Certificates will
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be reduced, pro rata in accordance with the
relative sizes of the remaining Certificate
Balances of such Classes of Certificates, until
such deficit (or each such Certificate Balance) is
reduced to zero. Any such deficit may be the result
of Realized Losses (as defined herein) incurred in
respect of the Mortgage Loans and/or Additional
Trust Fund Expenses (also as defined herein). The
foregoing reductions in the Certificate Balances of
the Principal Balance Certificates will be deemed
to constitute an allocation of any such Realized
Losses and Additional Trust Fund Expenses. Any such
allocation will also have the effect of reducing
the Notional Amount of the Class X Certificates.
Optional Termination................... At its option, on any Distribution Date on which
the remaining aggregate Stated Principal Balance of
the Mortgage Asset Pool is less than 1% of the
Initial Pool Balance, the Servicer or, if the
Servicer elects not to make such purchase, the
Depositor may purchase all of the Mortgage Loans
and REO Properties, and thereby effect termination
of the Trust Fund and early retirement of the then
outstanding Certificates. See "Description of the
Certificates--Termination; Retirement of
Certificates" herein and in the Prospectus.
Certain Federal Income Tax
Consequences......................... For federal income tax purposes, three separate
REMIC elections will be made with respect to
segregated asset pools which make up the Trust Fund
(other than any Excess Interest collected on the
ARD Loans), the resulting REMICs being herein
referred to as REMIC I, REMIC II and REMIC III,
respectively. The assets of REMIC I will include
the Mortgage Loans (other than the rights to Excess
Interest), any REO Properties acquired on behalf of
the Certificateholders, the Certificate Account,
the REO Account (if established) and any
Replacement Mortgage Loans substituted for Deleted
Mortgage Loans (as defined herein). For federal
income tax purposes, (i) the separate,
uncertificated regular interests in REMIC I will be
the "regular interests" in REMIC I and will
constitute the assets of REMIC II, (ii) the Class
R-I Certificates will be the sole class of
"residual interests" in REMIC I, (iii) the
separate, uncertificated regular interests in REMIC
II will be the "regular interests" in REMIC II and
will constitute the assets of REMIC III, (iv) the
Class R-II Certificates will be the sole class of
"residual interests" in REMIC II, (v) except for
the rights to Excess Interest, the Certificates
(other than the REMIC Residual Certificates) will
evidence "regular interests" in, and generally will
be treated as debt obligations of, REMIC III, and
(vi) the Class R-III Certificates will be the sole
class of "residual interests" in
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REMIC III. The interests of Certificateholders in
the portion of the Trust Fund consisting of any
Excess Interest collected on the ARD Loans will
constitute interests in a separate grantor trust
for federal income tax purposes.
For further information regarding the federal
income tax consequences of investing in the Offered
Certificates, see "Certain Federal Income Tax
Consequences" herein and in the Prospectus.
Ratings................................ It is a condition to their issuance that the
Offered Certificates receive the ratings from the
rating agencies set forth on the cover page of this
Prospectus Supplement (the "Rating Agencies"). The
ratings of the Offered Certificates address the
timely payment thereon of interest and, to the
extent applicable, the ultimate payment thereon of
principal on or before the Rated Final Distribution
Date. The ratings of the Offered Certificates do
not, however, represent any assessment of (i) the
likelihood or frequency of principal prepayments
(whether voluntary or involuntary) on the Mortgage
Loans, (ii) the corresponding effect on yield to
investors, (iii) the possibility that, as a result
of prepayments, investors in the Class X Certifi-
cates may realize a lower than anticipated yield or
may not fully recover their initial investment or
(iv) whether and to what extent Prepayment Premiums
or Excess Interest will be received. Further, a
security rating does not represent any assessment
of the yield to maturity that investors may
experience or the possibility that the holders of
the Class X Certificates might not fully recover
their investment in the event of rapid prepayments
of the Mortgage Loans (including both voluntary and
involuntary prepayments). In general, the ratings
thus address credit risk and not prepayment risk.
As described herein, the amounts payable with
respect to the Class X Certificates consist only of
interest. If the entire pool were to prepay in the
initial month, with the result that the Class X
Certificateholders receive only a single month's
interest and thus suffer a nearly complete loss of
their investment, all amounts "due" to such Holders
will nevertheless have been paid, and such result
is consistent with the "AAA" rating received on the
Class X Certificates. The Class X Certificates'
Notional Amount upon which interest is calculated
is reduced by payments of principal on, and the
allocation of Realized Losses and Additional Trust
Fund Expenses to, the Principal Balance
Certificates. The rating does not address the
timing or magnitude of reductions of such Notional
Amount, but only the obligation to pay interest
timely on the Notional Amount as so reduced from
time to time. Accordingly, the ratings of the Class
X Certificates should be evaluated independently
from similar ratings on other types of securities.
The ratings of the
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Offered Certificates also do not address certain
other matters as described under "Ratings" herein.
A security rating is not a recommendation to buy,
sell or hold securities and may be subject to
revision or withdrawal at any time by the assigning
rating agency. See "Ratings" herein.
Legal Investment....................... Any Offered Certificates rated in the category of
"AAA" or "AA" (or the equivalent) by at least one
Rating Agency will constitute "mortgage related
securities" pursuant to the Secondary Mortgage
Market Enhancement Act of 1984, as amended
("SMMEA"). All other Offered Certificates (the
"Non-SMMEA Certificates") will not constitute
"mortgage related securities" for purposes of
SMMEA. Investors should consult their legal
advisors to determine whether and to what extent
the Offered Certificates constitute legal
investments for them. See "Legal Investment" herein
and in the Prospectus.
ERISA Considerations................... A fiduciary of a Plan should review with its
counsel whether the purchase or holding of Offered
Certificates could give rise to a transaction that
is prohibited or is not otherwise permitted either
under ERISA or Section 4975 of the Code or whether
there exists any statutory or administrative
exemption applicable thereto. See "ERISA
Considerations" herein and in the Prospectus.
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<PAGE>
RISK FACTORS
Prospective purchasers of Offered Certificates should consider, among other
things, the following risk factors (as well as the risk factors set forth under
"Risk Factors" in the Prospectus) in connection with an investment therein.
THE CERTIFICATES
SUBORDINATION OF CLASS B, CLASS C, CLASS D AND CLASS E CERTIFICATES;
ALLOCATION OF REALIZED LOSSES. As described herein, the rights of holders of the
Subordinate Certificates, including the Class B, Class C, Class D and Class E
Certificates, to receive certain payments of principal and interest otherwise
payable on their Certificates, will in the case of each Class of Subordinate
Certificates, be subordinated to such rights of the holders of the Senior
Certificates and the holders of each other Class of Subordinate Certificates, if
any, having an earlier alphabetical Class designation, to the extent set forth
herein. See "Description of the Certificates--Distributions" herein. Realized
Losses on the Mortgage Loans and Additional Trust Fund Expenses will be
allocated to the Class N, Class M, Class L, Class K, Class J, Class H, Class G,
Class F, Class E, Class D, Class C and Class B Certificates, in that order,
reducing amounts payable to each such Class. Any such allocation of Realized
Losses and Additional Trust Fund Expenses will have the effect of reducing the
Notional Amount of the Class X Certificates by the amount so allocated.
POTENTIAL CONFLICTS OF INTEREST. As described herein, the Servicer will
have considerable latitude in determining whether to liquidate or modify
defaulted Mortgage Loans. See "Servicing of the Mortgage Loans--Modifications,
Waivers, Amendments and Consents" herein. GMACCM, the Servicer, expects to
acquire in connection with the initial issuance thereof certain of the
Subordinate Certificates, including a portion of the Class N Certificates. In
addition, subject to the conditions described herein, the holder or holders of
Certificates representing more than 50% of the voting rights allocated to the
Controlling Class (as described herein and initially consisting of the Class N
Certificates) may terminate the rights and obligations of the Servicer in
respect of Specially Serviced Mortgage Loans and REO Properties (each as defined
herein) and may appoint a replacement to perform such duties, which replacement
may be any such holder or an affiliate thereof. Investors in the Offered
Certificates should consider that, although the Servicer will be obligated to
act in accordance with the terms of the Pooling and Servicing Agreement, it may
have interests when dealing with defaulted Mortgage Loans that are in conflict
with those of the holders of the Offered Certificates. See "Servicing of the
Mortgage Loans--Termination of the Servicer with Respect to Specially Serviced
Mortgage Loans and REO Properties" herein.
THE MORTGAGE LOANS
ENVIRONMENTAL CONSIDERATIONS. All but ten (10) of the Mortgaged Properties
(which ten (10) Mortgaged Properties secure Credit Lease Loans representing
2.26% of the Initial Pool Balance), were subject to a "Phase I" environmental
site assessment (or an update of a previously conducted assessment) and, in the
case of certain Mortgage Loans, a subsequent environmental site assessment or
site assessments which were performed on behalf of the related Mortgage Loan
Seller, or as to which the related report was delivered to the related Mortgage
Loan Seller in connection with its acquisition or origination of the related
Mortgage Loan. With respect to all but six (6) of the Mortgage Loans (which six
(6) Mortgage Loans represent 2.04% of the Initial Pool Balance), such
environmental assessments (or updates) were performed during the 12-month period
prior to the Cut-off Date. No such environmental assessment revealed any
material adverse environmental condition or circumstance with respect to any
Mortgaged Property, except for: (i) those cases where such conditions were
remediated or abated or a use restriction was imposed prior to the Delivery
Date; (ii) those cases in which an operations and
S-22
<PAGE>
maintenance plan or periodic monitoring of such Mortgaged Property or nearby
properties was recommended; (iii) those cases involving a leaking underground
storage tank or groundwater contamination at a nearby property, which condition
had not yet materially affected such Mortgaged Property and as to which a
responsible party has either been identified under applicable law or was then
conducting remediation of the related condition; (iv) those cases in which
groundwater, soil or other contamination was identified or suspected, and an
escrow reserve, indemnity or other collateral was provided to cover the
estimated costs of continued monitoring, investigation, testing or remediation;
(v) those cases involving radon; and (vi) those cases where the related borrower
has agreed to seek "case closed" status for the issue from the applicable
governmental agency.
The Servicer is required to obtain an environmental site assessment of a
Mortgaged Property securing a defaulted Mortgage Loan prior to acquiring title
thereto or assuming its operation. Such requirement effectively precludes
enforcement of the security for the related Mortgage Note until a satisfactory
environmental site assessment is obtained (or until any required remedial action
is thereafter taken), but will decrease the likelihood that the Trust Fund will
become liable for a material adverse environmental condition at the Mortgaged
Property. However, there can be no assurance that this requirement will
effectively insulate the Trust Fund from potential liability for a materially
adverse environmental condition at any Mortgaged Property. See "The Pooling and
Servicing Agreements--Realization Upon Defaulted Mortgage Loans," "Risk
Factors--Environmental Considerations" and "Certain Legal Aspects of Mortgage
Loans--Environmental Considerations" in the Prospectus.
GEOGRAPHIC CONCENTRATION. Eighty (80) Mortgaged Properties, securing
Mortgage Loans which represent 16.79% of the Initial Pool Balance, are located
in California; twenty-one (21) Mortgaged Properties, securing Mortgage Loans
which represent 6.56% of the Initial Pool Balance, are located in New Jersey;
forty-three (43) Mortgaged Properties, securing Mortgage Loans which represent
5.28% of the Initial Pool Balance, are located in Florida; and forty-three (43)
Mortgaged Properties, securing Mortgage Loans which represent 5.08% of the
Initial Pool Balance, are located in Texas. For purposes of describing
geographic concentration, certain Mortgage Loans, each of which is secured by
multiple Mortgaged Properties located in multiple states, are each treated as
multiple Mortgage Loans, each of which is allocated a Cut-off Date Balance based
on the Allocated Principal Amounts thereof (as defined herein). In general, the
level of such concentration increases the exposure of the Mortgage Asset Pool to
any adverse economic or other developments, including earthquakes, hurricanes
and other natural disasters, that may occur in such States. In addition,
improvements on Mortgaged Properties located in California may be more
susceptible to certain types of special hazards not covered by insurance (such
as earthquakes) than properties located in other parts of the country. In
general, the Mortgaged Properties are not insured for earthquake risk. With
respect to Mortgaged Properties located in California, the related Mortgage Loan
Seller generally conducted seismic studies to assess the "probable maximum loss"
for the related Mortgaged Properties. In certain circumstances, the related
borrower was required to obtain earthquake insurance covering the Mortgaged
Properties. Certain of such Mortgaged Properties may be insured in amounts less
than the outstanding principal balances of such Mortgage Loans.
MORTGAGE LOANS NOT INSURED. None of the Mortgage Loans is insured or
guaranteed by the United States, any governmental entity or instrumentality, by
any private mortgage insurer or by the Depositor, the Underwriters, the Servicer
or any Mortgage Loan Seller. As described herein, in certain limited
circumstances, a Mortgage Loan Seller may be obligated to repurchase or replace
a Mortgage Loan if its representations and warranties concerning such Mortgage
Loan are breached; however, there can be no assurance that any Mortgage Loan
Seller will be in a financial position to effect such repurchase or
substitution. See "Description of the Mortgage Asset Pool--The Mortgage Loan
Sellers," "--Assignment of the Mortgage Loans; Repurchases and Substitutions,"
and "--Representations and Warranties; Repurchases" herein.
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NON-RECOURSE MORTGAGE LOANS. Substantially all of the Mortgage Loans are
non-recourse loans as to which recourse, in the event of a default, will be
limited to the related Mortgaged Property. In those cases where the loan
documents permit recourse to the borrower or a guarantor, no assurance can be
given that the financial condition of such borrower or guarantor will permit it
to satisfy its recourse obligations. Consequently, payment on each Mortgage Loan
prior to maturity is (or should be considered by investors to be) dependent
primarily on the sufficiency of the cash flow of the related Mortgaged Property,
and at maturity (whether at scheduled maturity or, in the event of a default,
upon the acceleration of such maturity) upon the then market value of the
related Mortgaged Property or the ability of the related borrower to refinance
the Mortgaged Property.
BALLOON PAYMENTS AND ARD PAYMENTS. Three hundred eleven (311) of the
Mortgage Loans, which represent 58.30% of the Initial Pool Balance, provide for
Balloon Payments to be due at their respective stated maturity dates unless
prepaid prior thereto. Loans with Balloon Payments involve a greater likelihood
of default than self-amortizing loans because the ability of a borrower to make
a Balloon Payment typically will depend upon its ability either to refinance the
loan or to sell the related Mortgaged Property. See "Description of the Mortgage
Asset Pool--Certain Terms and Conditions of the Mortgage Loans" herein and "Risk
Factors--Balloon Payments; Borrower Default" in the Prospectus.
In order to maximize recoveries on defaulted Mortgage Loans, the Servicer
may extend and modify Mortgage Loans that are in material default or as to which
a payment default (including the failure to make a Balloon Payment) is
reasonably foreseeable; subject, however, to the limitations described under
"Servicing of the Mortgage Loans--Modifications, Waivers, Amendments and
Consents" herein. There can be no assurance, however, that any such extension or
modification will increase the present value of recoveries in a given case. Any
delay in collection of a Balloon Payment that would otherwise be distributable
in respect of a Class of Offered Certificates, whether such delay is due to
borrower default or to modification of the related Mortgage Loan by the
Servicer, will likely extend the weighted average life of such Class of Offered
Certificates. See "Yield and Maturity Considerations" herein and in the
Prospectus.
Forty-six (46) of the Mortgage Loans, which represent 32.91% of the Initial
Pool Balance, are ARD Loans. The ability of a borrower to prepay an ARD Loan
prior to or at the Anticipated Repayment Date typically will depend on its
ability to either refinance the loan or to sell the related Mortgaged Property.
In addition, despite the related loan's terms (e.g. imposition of accelerated
amortization and the Revised Rate), such terms may not provide a borrower under
an ARD Loan with sufficient incentive to pay the Mortgage Loan in full on or
before the Anticipated Repayment Date. See "Description of the Mortgage Asset
Pool--Certain Terms and Conditions of the Mortgage Loans--Hyperamortization"
herein. The failure of a borrower to prepay an ARD Loan prior to the Anticipated
Repayment Date will likely extend the weighted average life of any Class of
Offered Certificates upon which such repayment would be distributed.
RISKS PARTICULAR TO MULTIFAMILY PROPERTIES. One hundred fifty (150)
Mortgaged Properties, securing Mortgage Loans which represent 29.89% of the
Initial Pool Balance, are multifamily properties. Adverse economic conditions,
either local, regional or national, may limit the amount of rent that can be
charged for rental units, and may result in a reduction in timely rent payments
or a reduction in occupancy levels. Occupancy and rent levels may also be
affected by construction of additional housing units, local military base
closings, developments at local colleges and universities and national, regional
and local politics, including, in the case of multifamily rental properties,
current or future rent stabilization and rent control laws and agreements. In
addition, the level of mortgage interest rates may encourage tenants in
multifamily rental properties to purchase housing. Furthermore, tax credit and
city, state and federal housing subsidy or similar programs may impose rent
limitations and may adversely affect the ability of the applicable borrowers to
increase rents to maintain such Mortgaged Properties in proper condition during
periods of rapid inflation or declining market value of such Mortgaged
Properties. In addition, such programs may impose income restrictions on
tenants, which may reduce the number of eligible
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tenants in such Mortgaged Properties and result in a reduction in occupancy
rates applicable thereto. Furthermore, some eligible tenants may not find any
differences in rents between such subsidized or supported properties and other
multifamily rental properties in the same area to be a sufficient economic
incentive to reside at a subsidized or supported property, which may have fewer
amenities or otherwise be less attractive as a residence. All of these
conditions and events may increase the possibility that a borrower may be unable
to meet its obligations under its Mortgage Loan.
Twenty-seven (27) of the multifamily Mortgaged Properties, securing Mortgage
Loans which represent 5.32% of the Initial Pool Balance, are manufactured
housing properties. Significant factors determining the value of manufactured
housing properties are generally similar to the factors affecting the value of
multifamily rental properties. In addition, manufactured housing properties are
"special purpose" properties that could not be readily converted to general
residential, retail or office use. In fact, certain states also regulate changes
in the use of a manufactured housing property and require that the landlord give
written notice to its tenants a substantial period of time prior to the
projected change. Consequently, if the operation of any of the manufactured
housing properties becomes unprofitable due to competition, age of the
improvement or other factors such that the borrower becomes unable to meet its
obligation on the related Mortgage Loan, the liquidation value of that
manufactured housing property may be substantially less, relative to the amount
owing on the Mortgage Loan, than would be the case if the manufactured housing
property were readily adaptable to other uses.
RISKS PARTICULAR TO RETAIL PROPERTIES. One hundred eighteen (118) Mortgaged
Properties, securing Mortgage Loans which represent 25.70% of the Initial Pool
Balance, are retail properties. Significant factors determining the value of
retail properties are the quality of the tenants as well as fundamental aspects
of real estate such as location and market demographics. The correlation between
the success of tenant businesses and property value is more direct with respect
to retail properties than other types of commercial property because a
significant component of the total rent paid by retail tenants is often tied to
a percentage of gross sales. Significant tenants at a retail property play an
important part in generating customer traffic and making a retail property a
desirable location for other tenants at such property. Accordingly, retail
properties may be adversely affected if a significant tenant ceases operations
at such locations (which may occur on account of a voluntary decision not to
renew a lease, bankruptcy or insolvency of such tenant, such tenant's general
cessation of business activities or for other reasons). In addition, certain
tenants at retail properties may be entitled to terminate their leases or pay
reduced rent if an anchor tenant ceases operations at such property. In such
cases, there can be no assurance that any such anchor tenants will continue to
occupy space in the related shopping centers. See "Description of the Mortgage
Asset Pool--Certain Terms and Conditions of the Mortgage Loans-- Tenant Matters"
herein. Furthermore, the correlation between the success of tenant businesses
and credit quality of the Mortgage Loan is increased when the property is a
single tenant property. For a description of risk factors relating to single
tenant properties see "--Tenant Credit Risk" herein.
Unlike office or hospitality properties, retail properties also face
competition from sources outside a given real estate market. Catalogue
retailers, home shopping networks, the Internet, telemarketing and outlet
centers all compete with more traditional retail properties for consumer
dollars. Continued growth of these alternative retail outlets (which are often
characterized by lower operating costs) could adversely affect the rents
collectible at the retail properties which secure Mortgage Loans in the Trust
Fund.
Twelve (12) of the retail Mortgaged Properties, securing a Mortgage Loan
which represents 7.79% of the Initial Pool Balance, are factory outlet centers.
The factory outlet center business depends, in part, on the pricing differential
between goods sold in the factory outlet centers and similar or identical goods
sold in a traditional department or other retail store. While this pricing
differential results, in part, because of lower operating costs resulting from
the elimination of distribution layers and the reduced rent and overhead of
factory outlet centers, there can be no assurance that traditional retailers
will not compete
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aggressively to regain sales nor can there be any assurance that the factory
outlet center business will not be adversely affected by other changes in the
distribution and sale of retail goods.
Factory outlet centers typically are located at some distance from suburban
and center city shopping areas, allowing manufacturers to avoid direct
competition with their major customers, traditionally large department stores
and specialty stores. The amount of travel time may create a disincentive to
shopping at outlet centers. Further, newer outlet centers may be constructed
closer to metropolitan and suburban areas and destination/tourist areas, thereby
decreasing the economic viability of older centers that are located farther
away. Numerous factory outlet centers have been developed in recent years and
are currently being developed. As a result of this rapid growth, there is a risk
of overdevelopment and increased competition for tenants and shoppers. The terms
of store leases in factory outlet centers typically may be shorter than those in
traditional malls or shopping centers, thereby increasing the risks of tenants
relocating to competing centers.
RISKS PARTICULAR TO OFFICE PROPERTIES. Eighty-six (86) Mortgaged
Properties, securing Mortgage Loans which represent 15.25% of the Initial Pool
Balance, are office properties. Significant factors determining the value of
office properties are the quality of the tenants in the building, the physical
attributes of the building in relation to competing buildings and the strength
and stability of the market area as a desirable business location. Office
properties may be adversely affected by an economic decline in the business
operated by the tenants. The risk of such an adverse effect is increased if
revenue is dependent on a single tenant or if there is a significant
concentration of tenants in a particular business or industry. For a description
of risk factors relating to significant tenants and single tenant properties see
"--Tenant Credit Risk" herein.
Office properties are also subject to competition with other office
properties in the same market. Competition is affected by a property's age,
condition, design (e.g., floor sizes and layout), access to transportation and
ability or inability to offer certain amenities to its tenants, including
sophisticated building systems (such as fiberoptic cables, satellite
communications or other base building technological features).
The success of an office property also depends on the local economy. A
company's decision to locate office headquarters in a given area, for example,
may be affected by such factors as labor cost and quality, tax environment and
quality of life issues such as schools and cultural amenities. A central
business district may have an economy which is markedly different from that of a
suburb. The local economy and the financial condition of the owner will impact
an office property's ability to attract stable tenants on a consistent basis. In
addition, the cost of refitting office space for a new tenant is often more
costly than for other property types.
RISKS PARTICULAR TO HOSPITALITY PROPERTIES. Twenty-six (26) Mortgaged
Properties, securing Mortgage Loans which represent 9.30% of the Initial Pool
Balance, are hospitality properties. Various factors, including location,
quality and franchise affiliation, affect the economic viability of a
hospitality property. Adverse economic conditions, either local, regional or
national, may limit the amount that may be charged for a room and may result in
a reduction in occupancy levels. The construction of competing hospitality
properties can have similar effects. Because hospitality property rooms
generally are rented for short periods of time, hospitality properties tend to
respond more quickly to adverse economic conditions and competition than do
other commercial properties. In addition, the transferability of franchise
license agreements may be restricted. Furthermore, the ability of a hospitality
property to attract customers, and a portion of a hospitality property's
revenues, may depend on its having a liquor license. Such a license may not be
transferable in the event of a foreclosure on the related Mortgaged Property.
RISKS PARTICULAR TO HEALTHCARE PROPERTIES. Fifteen (15) Mortgaged
Properties, securing Mortgage Loans which represent 4.53% of the Initial Pool
Balance, are operated as skilled nursing facilities. Ten
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(10) Mortgaged Properties, securing Mortgage Loans which represent 1.64% of the
Initial Pool Balance, are operated as congregate care/independent/assisted
living facilities. Significant factors determining the value of such properties
include federal and state laws, competition with similar properties on a local
and regional basis and the continued availability of revenue from government
reimbursement programs, primarily Medicaid and Medicare.
Hospitals, nursing home facilities and other healthcare facilities may
receive a substantial portion of their revenues from government reimbursement
programs, primarily Medicaid and Medicare. Medicaid and Medicare are subject to
statutory and regulatory changes, retroactive rate adjustments, administrative
rulings, policy interpretations, delays by fiscal intermediaries and government
funding restrictions, all of which can adversely affect revenues from operation.
Moreover, governmental payors have employed cost-containment measures that limit
payments to health care providers, and there are currently under consideration
various proposals for national health care reform that could further limit those
payments. In addition, providers of long-term nursing care and other medical
services are highly regulated by federal, state and local law and are subject
to, among other things, federal and state licensing requirements, facility
inspections, rate setting, government reimbursement policies, private insurer
reimbursement policies, and laws relating to the adequacy of medical care,
distribution of pharmaceuticals, equipment, personnel, operating policies and
maintenance of and additions to facilities and services, any or all of which
factors can increase the cost of operation, limit growth and, in extreme cases,
require or result in suspension or cessation of operations or, if applicable,
suspension from participation in government reimbursement programs. Accordingly,
there can be no assurance that payments under government and/or private
reimbursement programs will, in the future, be sufficient to fully reimburse the
cost of caring for program beneficiaries. If not, net operating income of the
Mortgaged Properties that receive revenue from those sources, and consequently
the ability of the related borrowers to meet their obligations under their
Mortgage Loan, could be adversely affected.
The operators of such hospitals, nursing homes and other healthcare
facilities are likely to compete on a local and regional basis with others that
operate similar facilities, some of which competitors may be better capitalized,
may offer services not offered by such operators or may be owned by non-profit
organizations or government agencies supported by endowments, charitable
organizations, tax revenues and other sources not available to such operators.
Successful operation of a Mortgaged Property that is a hospital, nursing home or
other healthcare facility will generally depend upon the number of competing
facilities in the local market, as well as upon other factors such as its age,
appearance, reputation and management, the types of services it provides, the
degree of sophistication in managing government reimbursement policies and the
quality of care and the cost of care.
Under applicable federal and state laws and regulations, Medicare and
Medicaid reimbursements are generally not permitted to be made to any person
other than the provider who actually furnished the related medical goods and
services. Accordingly, in the event of foreclosure on a nursing facility, a
subsequent lessee or operator of the facility would generally not be entitled to
obtain from government payors any outstanding reimbursement payments relating to
services furnished prior to such foreclosure.
Such facilities may be subject to state regulation that requires the
operators to be licensed (generally on an annual basis), and the facilities must
meet various state licensure requirements that relate, among other things, to
qualifications of personnel, quality of care and the adequacy of their
buildings, equipment and suppliers. In the event of foreclosure, there can be no
assurance that the Trustee or purchaser at a foreclosure sale would be entitled
to the rights under any required licenses and regulatory approvals, or that such
party, if required to apply in its own right, could obtain a new license or a
new approval. In addition, such facilities are generally "special purpose"
properties that are not readily converted to general residential, retail or
office use.
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Hospitals and nursing homes also receive a substantial portion of their
revenues from other third-party payors such as private health insurance plans.
There can be no assurance that third-party reimbursement will continue to be
available for hospital and nursing home services, or at what such rate it will
be available. Congress and certain state legislatures are considering reforms in
the health care industry that may affect current reimbursement practices.
Further, the development of managed care programs in which the providers
contract to provide comprehensive health care to a patient population at a fixed
cost per person has given rise to similar pressures on health care providers to
lower costs.
RISKS PARTICULAR TO INDUSTRIAL AND WAREHOUSE PROPERTIES. Fifty-one (51)
Mortgaged Properties securing Mortgage Loans which represent 3.76% of the
Initial Pool Balance, are industrial or warehouse properties. Significant
factors determining the value of industrial and warehouse properties are the
quality of tenants, building design and adaptability and the location of the
property. Concerns about the quality of tenants, particularly major tenants, are
similar in both office properties and industrial properties, although industrial
properties are more frequently dependent on a single tenant. For a description
of risk factors relating to single tenant properties see "--Tenant Credit Risk"
herein. In addition, properties used for many industrial or warehouse purposes
are more prone to environmental concerns than other property types.
Aspects of building site design and adaptability affect the value of an
industrial or warehouse property. Site characteristics which are valuable to an
industrial or warehouse property include clear heights, column spacing, zoning
restrictions, number of bays and bay depths, divisibility, truck turning radius
and overall functionality and accessibility. Location is also important because
an industrial or warehouse property requires the availability of labor sources,
proximity to supply sources and customers and accessibility to rail lines, major
roadways and other distribution channels.
CREDIT LEASE MORTGAGED PROPERTIES. Twenty-nine (29) of the Mortgage Loans,
which represent 4.65% of the Initial Pool Balance, are Credit Lease Loans. The
payment of interest and principal on Credit Lease Loans is dependent principally
on the payment by each Tenant or guarantor, if any, of the Tenant's Credit Lease
(the "Guarantor") of Monthly Rental Payments and other payments due under the
terms of its Credit Lease. A downgrade in the credit rating of the Tenant and/or
the Guarantor may have a related adverse effect on the rating of the Offered
Certificates. Certain of the Tenants and/or Guarantors may not have an
investment grade rating. In addition, the Mortgage Loan Sellers have not
independently assessed the creditworthiness of any Tenant or Guarantor of a
Credit Lease. In addition, because the ability of a Credit Lease to service the
related Credit Lease Loan is dependent on revenue from a single Tenant, in the
event of a default under a Credit Lease or the associated guarantee, as the case
may be, the borrower may not have the ability to make required payments on such
Credit Lease Loan until the premises are re-let. Under certain of the Credit
Lease Loans, a default by the Tenant under the Credit Lease will not constitute
a default under the Credit Lease Loan, and thus the Servicer will be unable to
take any corrective action with respect to such Credit Lease Loan until such
time, if any, as such default occurs under such Credit Lease Loan. In the event
of a default by a Tenant under a Credit Lease, there can be no assurance that,
upon liquidation of the related Mortgaged Property, the "dark value" of the
related Mortgaged Property would generate Liquidation Proceeds sufficient to pay
all principal of and interest on the related Mortgage Loan. See "Description of
the Mortgage Asset Pool--Credit Lease Loans" herein.
RISKS ASSOCIATED WITH OTHER PROPERTY TYPES. Mortgage loans secured by
property types other than those described above pose risks not associated with
loans secured by liens on other types of income-producing real estate. Three (3)
Mortgaged Properties, securing Mortgage Loans which represent approximately
2.06% of the Initial Pool Balance, are secured by such other types of property.
Such properties may be "special purpose" properties that may have limited
alternative uses.
TENANT CREDIT RISK. Income from and the market value of retail, office and
industrial Mortgaged Properties would be adversely affected if space in such
Mortgaged Properties could not be leased, if
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tenants were unable to meet their lease obligations, if a significant tenant
were to become a debtor in a bankruptcy case under any bankruptcy or other
similar law related to creditor's rights or if for any other reason rental
payments could not be collected. If tenant sales in the Mortgaged Properties
that contain retail space were to decline, rents based upon such sales would
decline and tenants may be unable to pay their rent or other occupancy costs.
Upon the occurrence of an event of default by a tenant, delays and costs in
enforcing the lessor's rights could be experienced. Repayment of the Mortgage
Loans will be affected by the expiration of space leases and the ability of the
respective borrowers to renew the leases or relet the space on comparable terms.
Even if vacated space is successfully relet, the costs associated with
reletting, including tenant improvements, leasing commissions and free rent,
could exceed the amount of any reserves maintained for such purpose and could
reduce cash flow from the Mortgaged Properties. Although many of the Mortgage
Loans require the borrower to maintain escrows for such consideration, there can
be no assurance that such factors will not adversely impact the ability of a
borrower to repay a mortgage loan.
FACTORS AFFECTING LEASE ENHANCEMENT POLICY PROCEEDS. With respect to
certain Credit Lease Loans, the Trustee is the beneficiary of a non-cancelable
Lease Enhancement Policy (as defined herein) obtained to cover certain lease
termination and rent abatement events arising out of a casualty to, or
condemnation of, the related Mortgaged Property. The insurance company issuing
such policy (each, an "Enhancement Insurer") may not be required to pay amounts
due under the Credit Lease Loan other than principal and accrued interest and
therefore may not be required to pay any Prepayment Premium due thereunder or
any amounts the related borrower is obligated to pay thereunder as reimbursement
for outstanding Servicing Advances.
Certificateholders may be adversely affected by any failure by any
Enhancement Insurer to pay under the terms of the Lease Enhancement Policies,
and any downgrade of the credit rating of the Enhancement Insurer may adversely
affect the ratings of the Offered Certificates. See "Description of the Mortgage
Pool--Credit Lease Loans" herein.
MANAGEMENT. The successful operation of a real estate project is dependent
on the performance and viability of the property manager of such project. The
property manager is responsible for responding to changes in the local market,
planning and implementing the rental structure, including establishing levels of
rent payments, and ensuring that maintenance and capital improvements can be
carried out in a timely fashion. Accordingly, by controlling costs, providing
appropriate service to tenants and seeing to the maintenance of improvements,
sound property management can improve cash flow, reduce vacancy, leasing and
repair costs and preserve building value. On the other hand, management errors
can, in some cases, impair the long term viability of a real estate project.
Certain of the Mortgaged Properties may be managed by property managers
affiliated with the respective borrowers. These property managers may also
manage and/or franchise additional properties, including Mortgaged Properties or
other properties that may compete with the Mortgaged Properties. Moreover,
affiliates of the managers and/or the borrowers, or the managers and/or the
borrowers themselves, may also own other properties, including competing
properties. Accordingly, the managers of the Mortgaged Properties and the
borrowers may experience conflicts of interest in the management and/or
ownership of such properties.
LIMITATIONS OF APPRAISALS. With the exception of the Arden Loan and the
South Towne Loan (each as defined herein), an appraisal was conducted in respect
of each of the Mortgaged Properties in connection with the origination of the
related Mortgage Loan, and in general the resulting estimates of value are the
bases of the Cut-off Date LTV Ratios referred to herein. However, those
estimates represent the analysis and opinion of the person performing the
appraisal or market analysis and are not guarantees of present or future values.
Moreover, the values of the Mortgaged Properties may have fluctuated
significantly since the appraisal or market study was performed in connection
with the origination of the related Mortgage Loan and generally, no update of
such appraisal or market study has been performed
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since the date of origination. In addition, appraisals seek to establish the
amount a typically motivated buyer would pay a typically motivated seller. Such
amount could be significantly higher than the amount obtained from the sale of a
Mortgaged Property under a distress or liquidation sale. Information regarding
the values of Mortgaged Properties available to the Depositor as of the
applicable Cut-off Date is presented in Annex A and Annex C hereto for
illustrative purposes only.
RISKS OF SECURED SUBORDINATE FINANCING. Four (4) of the Mortgaged
Properties which secure Mortgage Loans representing 2.83% of the Initial Pool
Balances are known to be encumbered by subordinated debt that is not part of the
Mortgage Asset Pool. For all of the Mortgage Loans, the holder of any material
subordinate debt has agreed not to foreclose for so long as the related Mortgage
Loan is outstanding and the Trust Fund is not pursuing a foreclosure action.
Substantially all of the Mortgage Loans either prohibit the related borrower
from encumbering the Mortgaged Property with additional secured debt or require
the consent of the holder of the first lien prior to so encumbering such
property. However, a violation of such prohibition may not become evident until
the related Mortgage Loan otherwise defaults. In addition, with respect to two
(2) Mortgage Loans, representing 0.25% of the Initial Pool Balance, principals
of the related borrower are known to have incurred debt secured by interests in
the borrower.
The existence of any such additional subordinate indebtedness may increase
the difficulty of refinancing the related Mortgage Loan at maturity for the
purpose of making any Balloon Payments and the possibility that reduced cash
flow could result in deferred maintenance. Also, in the event that the holder of
any subordinated debt secured by a Mortgaged Property has filed for bankruptcy
or been placed in involuntary receivership, foreclosing on such Mortgaged
Property in the event of a default under the related Mortgage Loan could be
delayed.
RELATED BORROWERS. Certain borrowers under the Mortgage Loans are
affiliated or under common control with one another. In such circumstances, any
adverse circumstances relating to a borrower or an affiliate thereof and
affecting one of the related Mortgage Loans or Mortgaged Properties could also
affect Mortgage Loans or Mortgaged Properties of the related borrower. In
particular, the bankruptcy or insolvency of any such borrower or affiliate could
have an adverse effect on the operation of all of the Mortgaged Properties of
that borrower and its affiliates and on the ability of such related Mortgaged
Properties to produce sufficient cash flow to make required payments on the
related Mortgage Loans. For example, if a person that owns or directly or
indirectly controls several Mortgaged Properties experiences financial
difficulty at one Mortgaged Property, it could defer maintenance at one or more
other Mortgaged Properties, in order to satisfy current expenses with respect to
the Mortgaged Property experiencing financial difficulty, or it could attempt to
avert foreclosure by filing a bankruptcy petition that might have the effect of
interrupting payments for an indefinite period on all the related Mortgage
Loans. See "Certain Legal Aspects of Mortgage Loans--Bankruptcy Laws" in the
Prospectus.
CONCENTRATION OF MORTGAGE LOANS. Several of the Mortgage Loans,
individually or together with other Mortgage Loans with which they are
cross-collateralized, have Cut-off Date Balances that are substantially higher
than the average Cut-off Date Balance, including one Mortgage Loan representing
7.79% of the Initial Pool Balance. In general, concentrations in a mortgage pool
of loans with larger-than-average balances can result in losses that are more
severe, relative to the size of the pool, than would be the case if the
aggregate balance of the pool were more evenly distributed.
LIMITATION ON ENFORCEABILITY OF CROSS-COLLATERALIZATION. Sixteen (16 )
Mortgage Loans, representing in the aggregate 3.19% of the Initial Pool Balance,
are cross-collateralized with one or more other Mortgage Loans (the
"Cross-Collateralized Mortgage Loans"). Cross-collateralization arrangements
involving more than one borrower could be challenged as a fraudulent conveyance
by creditors of a borrower or by the representative or the bankruptcy estate of
a borrower, if a borrower were to become a debtor in a bankruptcy case.
Generally, under federal and most state fraudulent conveyance statutes, the
incurring of an obligation or the transfer of property by a person will be
subject to avoidance under
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certain circumstances if the person did not receive fair consideration or
reasonably equivalent value in exchange for such obligation or transfer and (i)
was insolvent at the time of, or was rendered insolvent by, such obligation or
transfer, (ii) was engaged in business or a transaction, or was about to engage
in business or a transaction, for which the person had unreasonably small
capital or (iii) intended to, or believed that it would, incur debts that would
be beyond the person's ability to pay as such debts matured. Accordingly, a lien
granted by a borrower to secure repayment of another borrower's Mortgage Loan
could be avoided if a court were to determine that (i) such borrower was
insolvent at the time of granting the lien, was rendered insolvent by the
granting of the lien, or was left with inadequate capital or was not able to pay
its debts as they matured and (ii) the borrower did not, when it allowed its
Mortgaged Property to be encumbered by a lien securing the entire indebtedness
represented by the other Mortgage Loan, receive fair consideration or reasonably
equivalent value for pledging such Mortgaged Property for the equal benefit of
the other borrower. See "Description of the Mortgage Asset Pool-- Certain Terms
and Conditions of the Mortgage Loans--Related Borrowers, Cross-Collateralized
and Cross-Defaulted Mortgage Loans."
TAX CONSIDERATIONS RELATED TO FORECLOSURE. If the Trust Fund were to
acquire a Mortgaged Property after a default on the related Mortgage Loan
pursuant to a foreclosure or delivery of a deed in lieu of foreclosure, the
Servicer would be required to retain an independent contractor to operate and
manage the Mortgaged Property. By reference to rules applicable to real estate
investment trusts, such property will be considered "foreclosure property" for a
period of three full years after the taxable year of acquisition, with possible
extensions. In general, net income from such "foreclosure property" other than
qualifying "rents from real property" will subject REMIC I to federal (and
possibly state or local) tax on such income at the highest marginal corporate
tax rate, thereby reducing net proceeds available for distribution to
Certificateholders.
RISKS ASSOCIATED WITH MORTGAGED PROPERTIES LOCATED IN CALIFORNIA. As of the
applicable Cut-off Date, eighty (80) of the Mortgaged Properties, securing
Mortgage Loans which represent 16.79% of the Initial Pool Balance, are located
in California. The following discussion contains a general summary of certain
legal aspects of loans secured by income-producing properties in California. The
summary does not purport to be complete nor does the summary reflect the laws of
any other state. The summary relates only to the topics covered and are
qualified in their entirety by reference to the applicable California state laws
being discussed. See also "Certain Legal Aspects of Mortgage Loans" in the
Prospectus.
Mortgage loans in California are generally secured by deeds of trust.
Provided the deed of trust contains a private power of sale, a lender may
foreclose either non-judicially or judicially. Most lenders choose non-judicial
foreclosure because the process typically may be completed within a much shorter
time frame; however, a lender is barred from obtaining a deficiency judgment
after a non-judicial foreclosure. If the lender opts for judicial foreclosure,
an application for a deficiency judgment must be filed with the court within
three months of the foreclosure sale. A deficiency judgment may not exceed the
difference between the indebtedness and the fair value of the property, as
determined by the court. Unless the lender waives the right to a deficiency
judgment, the borrower has a right to redeem the property following a judicial
foreclosure sale for a period of three months from the date of sale if the
proceeds from the sale were sufficient to satisfy the debt, or for a period of
one year if the proceeds were insufficient to satisfy the debt. Junior
lienholders do not have a right to redeem the property following a judicial
foreclosure sale unless the junior lien was created before July 1, 1983.
California's form of the "one action rule" requires the lender to look first to
the property for satisfaction of the debt if the lender wants to pursue a
deficiency judgment. In general, a lender who takes any action to enforce the
debt other than judicial or non-judicial foreclosure violates the one-action
rule and may be deemed to have waived its security for the indebtedness and, in
some cases, may be prevented from collecting the indebtedness altogether.
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<PAGE>
LEASEHOLD CONSIDERATIONS. Six (6) Mortgage Loans, which represent 2.28% of
the Initial Pool Balance, are secured solely by a Mortgage on the borrower's
leasehold interest under a ground lease. Five (5) Mortgage Loans, which
represent 6.40% of the Initial Pool Balance, are secured by either (i) a
Mortgage on the borrower's leasehold interest in a portion of the Mortgaged
Property and the borrower's fee simple interest in the remaining portion of the
Mortgaged Property or (ii) both the borrower's leasehold interest and lessor's
fee interest in the related Mortgaged Property. See "Description of the Mortgage
Asset Pool--Certain Terms and Conditions of the Mortgage Loans--Ground Leases"
herein. Leasehold mortgage loans are subject to certain risks not associated
with mortgage loans secured by a lien on the fee estate of the borrower. The
most significant of these risks is that if the borrower's leasehold were to be
terminated upon a lease default, the leasehold mortgagee would lose its
security. However, in each of these cases, each related ground lease generally
requires the lessor to give the leasehold mortgagee notice of lessee defaults
and an opportunity to cure them, permits the leasehold estate to be assigned to
and by the leasehold mortgagee at and after a foreclosure sale, and contains
certain other protective provisions typically included in a "mortgageable"
ground lease.
ZONING AND BUILDING CODE COMPLIANCE. Each Mortgage Loan Seller has taken
certain steps to establish that the use and operation of Mortgaged Properties
securing its Mortgage Loans were in compliance in all material respects with all
applicable zoning, land-use, building, fire and health ordinances, rules,
regulations and orders applicable to such Mortgaged Properties, but no assurance
can be made that such steps revealed all possible violations. Evidence of such
compliance may have been in the form of legal opinions, certifications from
government officials, title policy endorsements and/or representations by the
related borrower contained in the related Mortgage Loan documents. Certain
violations may exist at any particular Mortgaged Property, but the related
Mortgage Loan Seller does not consider any such violations known to it to be
material. In many cases, the use, operation and/or structure of a Mortgaged
Property constitutes a permitted nonconforming use and/or structure, which may
not be rebuilt to its current state in the event of a material casualty event;
however, it is expected that insurance proceeds would be available for
application to the related Mortgage Loan if such were to occur. Such insurance
proceeds, however, may not be sufficient to cover all principal of and interest
on the related Mortgage Loan.
RISK OF CHANGES IN CONCENTRATIONS. As payments in respect of principal
(including in the form of voluntary principal prepayments, liquidation proceeds
and the repurchase prices for any Mortgage Loans repurchased due to breaches of
representations or warranties or defaults) are received with respect to the
Mortgage Loans, the remaining Mortgage Loans as a group may exhibit increased
concentration with respect to the type of properties, property characteristics,
number of borrowers and affiliated borrowers and geographic location. Because
principal on the Principal Balance Certificates is payable in sequential order,
the Classes thereof that have a lower priority with respect to the payment of
principal are relatively more likely to be exposed to any risks associated with
changes in concentrations of borrower, loan or property characteristics.
COSTS OF COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT. Under the
Americans with Disabilities Act of 1990 (the "ADA"), all public accommodations
are required to meet certain federal requirements related to access and use by
disabled persons. To the extent the Mortgaged Properties do not comply with the
ADA, the borrowers may be required to incur costs of complying with the ADA. In
addition, noncompliance could result in the imposition of fines by the federal
government or an award of damages to private litigants.
LITIGATION. There may be legal proceedings pending and, from time to time,
threatened against the borrowers and their affiliates relating to the business
of or arising out of the ordinary course of business of the borrowers and their
affiliates. There can be no assurance that such litigation will not have a
material adverse affect on the distributions to Certificateholders.
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<PAGE>
DESCRIPTION OF THE MORTGAGE ASSET POOL
GENERAL
The Mortgage Asset Pool will consist of four hundred eight (408) Mortgage
Loans with an Initial Pool Balance of $2,563,948,705, subject to a variance of
plus or minus 5%. See "Description of the Trust Funds" and "Certain Legal
Aspects of Mortgage Loans" in the Prospectus. All numerical information provided
herein with respect to the Mortgage Loans is provided on an approximate basis.
All weighted average information provided herein with respect to the Mortgage
Loans is determined by related Cut-off Date Balance. The "Cut-off Date Balance"
of each Mortgage Loan is the unpaid principal balance thereof as of the Cut-off
Date for such Mortgage Loan, after application of all payments of principal due
on or before such date, whether or not received.
Except as otherwise described below under "--Certain Terms and Conditions of
the Mortgage Loans--Related Borrowers, Cross-Collateralized and Cross-Defaulted
Mortgage Loans," each Mortgage Loan is evidenced by a Mortgage Note and secured
by a Mortgage that creates a first mortgage lien on a fee simple and/or
leasehold interest in a Mortgaged Property, improved by multifamily, retail,
skilled nursing, office, industrial, warehouse, hospitality, cooperative housing
or other commercial property. Twelve (12) of the Mortgage Loans (other than the
Cross-Collateralized Mortgage Loans), which represent 24.53% of the Initial Pool
Balance, are secured by more than one Mortgaged Property. Accordingly, the total
number of Mortgage Loans reflected herein is 408, while the total number of
Mortgaged Properties reflected herein is 520.
The Mortgage Asset Pool includes five (5) separate sets of
Cross-Collateralized Mortgage Loans, which represent in the aggregate 3.19% of
the Initial Pool Balance. See "--Certain Terms and Conditions of the Mortgage
Loans--Related Borrowers, Cross-Collateralized and Cross-Defaulted Mortgage
Loans" below and Annex A hereto.
Substantially all the Mortgage Loans constitute non-recourse obligations of
the related borrower and, upon any such borrower's default in the payment of any
amount due under the related Mortgage Loan, the holder thereof may look only to
the related Mortgaged Property or Properties for satisfaction of the borrower's
obligation. In addition, in those cases where recourse to a borrower or
guarantor is permitted by the loan documents, no assurance can be given that the
financial condition of such borrower or guarantor will permit it to satisfy its
recourse obligations. None of the Mortgage Loans is insured or guaranteed by the
United States, any governmental entity or instrumentality, by any private
mortgage insurer, or by the Depositor, Servicer or any Mortgage Loan Seller.
One hundred and fifty-four (154) of the Mortgage Loans (the "GMACCM Mortgage
Loans"), which represent 46.24% of the Initial Pool Balance, were originated or
acquired by GMACCM. Two hundred and fifty-four (254) of the Mortgage Loans (the
"Lehman Mortgage Loans"), which represent 53.76% of the Initial Pool Balance,
were originated or acquired by the Lehman Seller.
On or prior to the Delivery Date, the Depositor will acquire the Mortgage
Loans directly or indirectly from the Mortgage Loan Sellers, in each case
pursuant to a purchase agreement or similar agreement to be entered into by or
assigned to the Depositor (each, a "Mortgage Loan Purchase Agreement"). The
Depositor will thereupon assign its interests in the Mortgage Loans, without
recourse, to the Trustee for the benefit of the Certificateholders. See "--The
Mortgage Loan Sellers" and "--Assignment of Mortgage Loans; Repurchases and
Substitutions" below. Each Mortgage Loan Seller constitutes a "Mortgage Asset
Seller" for purposes of the Prospectus.
CERTAIN TERMS AND CONDITIONS OF THE MORTGAGE LOANS
DUE DATES. Three hundred and sixty-nine (369) of the Mortgage Loans provide
for scheduled monthly payments of principal and/or interest (exclusive of Excess
Interest or principal payments calculated with respect to excess cash flow on
any ARD Loan, "Monthly Payments") on Due Dates which
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are the first day of each month. Thirty-nine (39) of the Mortgage Loans provide
for Monthly Payments on Due Dates which are the tenth day or another day other
than the first day of each month. In the case of certain Mortgage Loans, the
related Balloon Payment may be due on a day other than the related Due Date for
Monthly Payments (any resulting Balloon Payment Interest Shortfalls (as defined
herein) to be covered by the Servicer out of its own funds). See "Servicing of
the Mortgage Loans--Servicing and Other Compensation and Payment of Expenses"
herein.
None of the Mortgage Loans provide for a grace period for the payment of
Monthly Payments of more than fifteen days.
MORTGAGE RATES; CALCULATIONS OF INTEREST. Eighty-six (86) of the Mortgage
Loans, which represent 18.14% of the Initial Pool Balance, accrue interest at
fixed interest rates on the basis of a 360-day year consisting of twelve 30-day
months (with respect to certain of such Mortgage Loans, after an initial
interest-only period). Three hundred and twenty-two (322) of the Mortgage Loans,
which represent 81.86% of the Initial Pool Balance, accrue interest on the basis
of the actual number of days elapsed in a year assumed to consist of 360 days
(with respect to certain of such Mortgage Loans, after an initial interest-only
period).
As of the Cut-off Date, the Mortgage Rates of the Mortgage Loans range from
6.28% to 9.75% per annum, and the weighted average Mortgage Rate of the Mortgage
Loans is 7.09% per annum.
HYPERAMORTIZATION. Forty-six (46) of the Mortgage Loans, which represent
32.91% of the Initial Pool Balance, bear interest at their respective Mortgage
Rates until an Anticipated Repayment Date. Commencing on the respective
Anticipated Repayment Date, except as described below, each such Mortgage Loan
generally will bear interest at a fixed rate (the "Revised Rate") per annum
equal to the Mortgage Rate plus a specified percentage. Excess Interest on such
Mortgage Loans will be deferred until the principal balance thereof is reduced
to zero. Non-payment of such Excess Interest will not constitute a default under
such Mortgage Loans prior to the related maturity date. To the extent Excess
Interest is unpaid, it will, except where limited by applicable law, continue to
accrue interest at the Revised Rate. As of or shortly following the Anticipated
Repayment Date, borrowers under ARD Loans will be required to enter into a
lockbox agreement whereby all revenue will be deposited directly into a
designated account (the "Lockbox Account") controlled by the Servicer. From and
after the Anticipated Repayment Date, in addition to paying interest (at the
Mortgage Rate) and principal (based on the amortization schedule), the related
borrower generally will be required to apply all remaining monthly cash flow
from the related Mortgaged Property to pay the following amounts in the
following order of priority: (i) payments to required escrow funds, (ii) payment
of operating expenses pursuant to the terms of an annual budget approved by the
Servicer, (iii) payment of approved extraordinary operating expenses or capital
expenses not set forth in the approved annual budget or allotted for in any
escrow fund, (iv) principal on the Mortgage Loan until such principal is paid in
full and (v) to Excess Interest. As described below, ARD Loans generally provide
that the related borrower is prohibited from prepaying the Mortgage Loan before
(or, in certain cases, until a certain date prior to) the Anticipated Repayment
Date but, upon the commencement of such period, may prepay the loan, in whole or
in part, without payment of a Prepayment Premium. The Anticipated Repayment Date
and "open" period for each ARD Loan is listed in Annex A.
AMORTIZATION OF PRINCIPAL. The Mortgage Asset Pool consists of three
hundred eleven (311) Balloon Loans, which represent 58.29% of the Initial Pool
Balance; forty-six (46) ARD Loans, which represent 32.91% of the Initial Pool
Balance; and fifty-one (51) fully amortizing Mortgage Loans, which represent
8.80% of the Initial Pool Balance.
Nine (9) Mortgage Loans, which represent 1.21% of the Initial Pool Balance,
are in each such case a "split amortization" Mortgage Loan that amortizes at a
certain amortization schedule for a specified period following origination, and
thereafter amortizes at a different amortization schedule until maturity.
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No assurance is given as to the effect of such split amortization on prepayment
of such Mortgage Loan. See "Certain Characteristics of the Mortgage Loans--Split
Amortization Loans" in Annex A hereto.
In addition, ten (10) Mortgage Loans, which represent 20.17% of the Initial
Pool Balance, provide for payments of interest only for up to 120 months
following origination before payments of principal are due. The total dollar
amount of the Monthly Payment with respect to certain of those Mortgage Loans
will be subject to a one-time increase in order to permit the commencement of
scheduled amortization of such loan. See Annex A herein and "Risk
Factors--Balloon Payments; Borrower Default" in the Prospectus. No Mortgage Loan
(other than the ARD Loans) permits negative amortization or the deferral of
accrued interest.
PREPAYMENT PROVISIONS. As of the Cut-off Date, all of the Mortgage Loans
impose some restriction on voluntary principal prepayments, whether in the form
of an absolute prohibition or a requirement that any voluntary principal
prepayment be accompanied by a Prepayment Premium. See "Annex A" herein.
As described herein, Prepayment Premiums actually collected on the Mortgage
Loans will be distributed to the respective Classes of Certificateholders in the
amounts and priorities described under "Description of the
Certificates--Distributions--Distributions of Prepayment Premiums" herein. The
enforceability, under the laws of a number of states, of provisions similar to
the provisions of the Mortgage Loans providing for the payment of a Prepayment
Premium upon an involuntary prepayment is unclear. No assurance can be given
that, at any time that any Prepayment Premium is required to be made in
connection with an involuntary prepayment, the obligation to pay such Prepayment
Premium will be enforceable under applicable law or, if enforceable, the
foreclosure proceeds will be sufficient to make such payment. Liquidation
Proceeds recovered in respect of any defaulted Mortgage Loan will, in general,
be applied to cover outstanding servicing expenses and unpaid principal and
interest prior to being applied to cover any Prepayment Premium due in
connection with the liquidation of such Mortgage Loan. The Depositor makes no
representation as to the enforceability of the provision of any Mortgage Loan
requiring the payment of a Prepayment Premium or as to the collectability of any
Prepayment Premium. In general, no Prepayment Premium will be payable upon any
mandatory prepayment of a Mortgage Loan in connection with a casualty or
condemnation. See "Annex A" herein and "Certain Legal Aspects of Mortgage
Loans--Default Interest and Limitations on Prepayments" in the Prospectus.
No Prepayment Premium will be payable in connection with any repurchase of a
Mortgage Loan by a Mortgage Loan Seller for a material breach of representation
or warranty on the part of such Mortgage Loan Seller or any failure to deliver
documentation relating thereto, nor will any Prepayment Premium be payable in
connection with the purchase of all of the Mortgage Loans and any REO Properties
in connection with the termination of the Trust Fund or in connection with the
purchase of defaulted Mortgage Loans by the Servicer or any holder or holders of
Certificates evidencing a majority interest in the Controlling Class. See
"--Assignment of the Mortgage Loans; Repurchases and Substitutions" and
"--Representations and Warranties; Repurchases" and "Description of the
Certificates--Termination; Retirement of Certificates" herein.
DEFEASANCE. Three hundred and twenty-five (325) Mortgage Loans, which
represent 87.34% of the Initial Pool Balance, permit the applicable borrower,
after a specified period and provided that no event of default exists, to
exercise a Defeasance Option, provided that, among other conditions, the
borrower (a) pays on any Due Date (the "Release Date") (i) all interest accrued
and unpaid on the principal balance of the Mortgage Note to and including the
Release Date, (ii) all other sums, excluding scheduled interest or principal
payments not yet due and owing, due under the Mortgage Loan, and (iii) any costs
and expenses incurred in connection with such release, (b) delivers direct,
non-callable obligations of (or non-callable obligations, fully guaranteed as to
timely payment by) the United States of America (the "Defeasance Collateral")
providing payments on or prior to all successive scheduled payment dates from
the Release Date to the related maturity date (or Anticipated Repayment Date in
the case of any
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ARD Loan), and in an amount equal to or greater than the scheduled payments due
on such dates under the Mortgage Loan (or, with respect to Cross-Collateralized
Mortgage Loans or Mortgage Loans secured by multiple Mortgaged Properties which
permit defeasance, an amount equal to not less than the portion of such
scheduled payments allocable to the released Mortgaged Property), and (c)
delivers a security agreement granting the Trust Fund a first priority security
interest in the Defeasance Collateral and an opinion of counsel to such effect.
Simultaneously with such actions, the related Mortgaged Property will be
released from the lien of the Mortgage Loan and the Defeasance Collateral will
be substituted as the collateral securing the Mortgage Loan.
The Depositor makes no representation as to the enforceability of the
defeasance provisions of any Mortgage Loan.
RELATED BORROWERS, CROSS-COLLATERALIZED AND CROSS-DEFAULTED MORTGAGE
LOANS. Each of the Mortgage Loan Sellers has identified certain sets of
Mortgage Loans in its respective pool made to borrowers who are affiliated or
under common control with one another (although no such set of Mortgage Loans
represents more than 3.19% of the Initial Pool Balance). One set of
cross-collateralized Mortgage Loans provides that the cross-collateralization
may be terminated by the borrower upon the satisfaction of certain debt service
coverage tests. See "Annex A--Certain Characteristics of the Mortgage Loans".
Sixteen (16) Mortgage Loans, which represent 3.20% of the Initial Pool
Balance, are Cross-Collateralized Mortgage Loans among groups of related
borrowers. Cross-collateralization arrangements involving more than one borrower
could be challenged as a fraudulent conveyance by creditors of a borrower or by
the representative of the bankruptcy estate of a borrower, if a borrower were to
become a debtor in a bankruptcy case. See "Risk Factors--The Mortgage
Loans--Limitation on Enforceability of Cross-Collateralization" herein.
See Annex A hereto for information regarding the Cross-Collateralized
Mortgage Loans.
Twelve (12) Mortgage Loans (other than the Cross-Collateralized Mortgage
Loans), which represent 24.53% of the Initial Pool Balance, are secured by one
or more Mortgages encumbering multiple Mortgaged Properties. With respect to
each of such Mortgage Loans, the related Mortgaged Properties are of the same
property type. Each of these Mortgage Loans is evidenced by a single Mortgage
Note, and despite the related multiple Mortgaged Properties, none is treated as
a set of Cross-Collateralized Mortgage Loans for purposes herein. Accordingly,
the total number of Mortgage Loans reflected herein is 408, while the total
number of Mortgaged Properties reflected herein is 520. Certain of the Mortgage
Loans that secure Mortgaged Properties that are not located in the same state
are treated as an individual Mortgage Loan for all purposes hereof except that
in describing the geographic concentration and property type distribution of the
Mortgage Asset Pool, each such Mortgage Loan is treated as multiple Mortgage
Loans, each of which is allocated a Cut-off Date Balance based on the Allocated
Principal Amount, which is assigned as described herein.
DUE-ON-SALE AND DUE-ON-ENCUMBRANCE PROVISIONS. All of the Mortgage Loans
contain both "due-on-sale" and "due-on-encumbrance" clauses that in each case,
subject to limited exceptions, permit the holder of the Mortgage to accelerate
the maturity of the related Mortgage Loan if the borrower sells or otherwise
transfers or encumbers the related Mortgaged Property other than in accordance
with the terms of the related Mortgage or other loan documents or prohibit the
borrower from doing so without the consent of the holder of the Mortgage. See
"--Secured Subordinate Financing" herein. Certain of the Mortgage Loans permit
either: (i) transfers of the related Mortgaged Property if certain specified
conditions are satisfied or if the transfer is to a borrower reasonably
acceptable to the lender, or (ii) transfers to certain parties related to the
borrower. The Servicer will determine, in accordance with the Servicing
Standard, whether to exercise any right the holder of any Mortgage may have
under any such clause to accelerate payment of the related Mortgage Loan upon,
or to withhold its consent to, any transfer or further encumbrance of the
related Mortgaged Property. See "The Pooling and Servicing
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Agreements--Due-on-Sale and Due-on-Encumbrance Provisions" and "Certain Legal
Aspects of Mortgage Loans--Due-on-Sale and Due-on-Encumbrance" in the
Prospectus.
SECURED SUBORDINATE FINANCING. Four (4) of the Mortgaged Properties which
secure Mortgage Loans representing 2.83% of the Initial Pool Balance are known
to be encumbered by subordinated debt that is not part of the Mortgage Asset
Pool. In all cases, the holder of any material subordinated debt has agreed not
to foreclose for so long as the related Mortgage Loan is outstanding, and the
Trust Fund is not pursuing a foreclosure action. Substantially all of the
remaining Mortgage Loans either prohibit the related borrower from encumbering
the Mortgaged Property with additional secured debt or require the consent of
the holder of the first lien prior to so encumbering such property. In addition,
with respect to two (2) Mortgage Loans, representing 0.25% of the Initial Pool
Balance, the principals of the related borrowers are known to have incurred debt
secured by interests in the borrower. See "Risk Factors-- The Mortgage
Loans--Risks of Secured Subordinate Financing" herein and "Certain Legal Aspects
of Mortgage Loans--Subordinate Financing" in the Prospectus.
GROUND LEASES. Six (6) Mortgage Loans, which represent 2.28% of the Initial
Pool Balance, are secured solely by a Mortgage on the applicable borrower's
leasehold interest in the related Mortgaged Property. Five (5) Mortgage Loans,
which represent 6.40% of the Initial Pool Balance, are secured by either (i) a
Mortgage on both the borrower's leasehold interest and fee simple interest in
the Mortgaged Property or (ii) both the borrower's leasehold interest and
lessor's fee interest in the related Mortgaged Property. None of the related
ground leases expire less than ten years after the stated maturity of the
related Mortgage Loan. Under the terms of each such ground lease, the related
ground lessor has agreed to give the holder of the Mortgage Loan notice of, and
has granted such holder the right to cure, any default or breach by the lessee.
CREDIT LEASE LOANS. Twenty-nine (29) of the Mortgage Loans, which represent
4.65% of the Initial Pool Balance, are Credit Lease Loans and are secured by
Mortgages on Mortgaged Properties that are, in each case, subject to a Credit
Lease to a Tenant which possesses, or the Guarantor of which possesses, the
rating indicated in the Credit Lease Table set forth below. Certain of the
Tenants and/or Guarantors may not have an investment grade rating, and the
Mortgage Loan Sellers have not independently assessed the creditworthiness of
the Tenants or the related Guarantors of the Credit Leases. Monthly Rental
Payments under the Credit Leases are generally sufficient to pay in full and on
a timely basis all interest and principal scheduled to be paid with respect to
the related Credit Lease Loans other than the Balloon Payments with respect to
Credit Lease Loans which are Balloon Loans.
The Credit Leases generally provide that the Tenant is responsible for all
costs and expenses incurred in connection with the maintenance and operation of
the related Mortgaged Property. In general, in the event of a casualty or
condemnation of a material portion of the related Mortgaged Property, either (i)
the Credit Lease provides that the Tenant must make an offer to purchase the
applicable Mortgaged Property for an amount not less than the unpaid principal
balance plus accrued interest on the related Credit Lease Loan or (ii) the
Trustee on behalf of the Certificateholders will have
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the benefit of certain non-cancelable Lease Enhancement Policies obtained to
cover certain casualty and/or condemnation risks.
<TABLE>
<CAPTION>
AGGREGATE
NUMBER OF CUT-OFF DATE
TENANT/GUARANTOR LOANS BALANCE ($) PROPERTY TYPE CREDIT RATING(1)
- --------------------------------------- --------------- ------------ ------------------------- ------------------
<S> <C> <C> <C> <C>
Circuit City........................... 10 53,152,874 Retail/Office/Warehouse Private Rating
Walgreen Company....................... 7 22,925,827 Retail Aa3/A+
Eckerd Corporation (2)................. 5 12,353,217 Retail A2/A
Wal-Mart............................... 1 10,445,688 Retail Aa2/AA
K-Mart................................. 1 9,220,000 Retail Ba2/BB
Hannaford.............................. 1 5,700,000 Retail Private Rating
Rite Aid Corporation................... 1 1,477,894 Retail Baa1/BBB+
Bridgestone Corporation................ 1 1,382,541 Retail A2/Private Rating
IHOP Corporation....................... 1 1,297,187 Retail Private Rating
Southland Corporation.................. 1 1,232,901 Retail Ba3/BB+
</TABLE>
- --------------------------
(1) Unless otherwise indicated, such ratings were the highest rating assigned to
the applicable Tenant or Guarantor, as applicable, by Moody's and Standard &
Poor's, respectively.
(2) Based upon the rating of Eckerd's parent, J.C. Penney Corporation, although
it has made no explicit guaranty of Eckerd's obligations.
CERTAIN OTHER MATTERS. The Mortgaged Property that secures one Mortgage
Loan which represents 1.76% of the Initial Pool Balance is undergoing a seismic
retrofit required by the municipality in which it is located. The seismic report
obtained with respect to the related Mortgage Property indicates that the
"probable maximum loss" following completion of the retrofit is expected to be
less than 20%.
ADDITIONAL MORTGAGE LOAN INFORMATION
GENERAL. For a detailed presentation of certain characteristics of the
Mortgage Loans and Mortgaged Properties, on an individual basis and in tabular
format, see Annex A hereto.
SIGNIFICANT MORTGAGE LOANS
THE OPERS LOAN
THE LOAN. The "OPERS Loan" was originated by GMACCM and has a principal
balance as of the Cut-off Date of approximately $199,846,047 representing 7.79%
of the Initial Pool Balance. The OPERS Loan is secured by, among other things,
fee mortgages (and in one case, a fee and leasehold mortgage) (the "OPERS
Mortgages") encumbering twelve separate factory outlet centers located
throughout the United States (the "OPERS Properties"). The OPERS Loan is an ARD
Loan with an Anticipated Repayment Date of July 10, 2008 and with a final
maturity of July 10, 2028. The OPERS Loan was made to twelve different special
purpose, non-profit corporations (each, an "OPERS Borrower"). Each OPERS
Borrower was formed for the sole purpose of acquiring and holding one or a
portion of one of the OPERS Properties. Each of the OPERS Borrowers is a
wholly-owned subsidiary of the Public Employees Retirement System of Ohio
("OPERS").
Additional prepayment and defeasance terms for the OPERS Loan are as set
forth on Annex A.
THE OPERS PROPERTIES; RELEASES AND SUBSTITUTIONS. The OPERS Properties
consist of twelve factory outlet centers located in New Hampshire, Connecticut,
Delaware, South Carolina, Alabama, Illinois, Oregon and Utah. The OPERS
Properties range in size from 88,181 net rentable square feet to 534,011 net
rentable square feet and collectively have an aggregate of 2,918,570 square feet
of aggregate net rentable square footage. The OPERS Properties were constructed
or substantially renovated between 1988 and 1998. Appraisals performed in April
and May 1998 determined a range of values for
S-38
<PAGE>
the OPERS Properties from $13,900,000 to $72,000,000 and an aggregate appraised
value of $411,390,000.
The OPERS Borrowers are prohibited from voluntarily prepaying the OPERS Loan
prior to its Anticipated Repayment Date. Each of the OPERS Borrowers is
permitted to have the related OPERS Property released from the lien of the
related OPERS Mortgages, from and after the second anniversary of the Delivery
Date, by delivering to the holder of the OPERS Loan Defeasance Collateral which
provides payments in an amount sufficient to pay principal and interest when due
on all successive scheduled payment dates and the applicable Anticipated
Repayment Date (as if it was the maturity date) in respect of the portion of the
OPERS Loan being defeased, which portion shall equal the related Release Amount
(as defined herein) for the Mortgaged Property to be released. The Release
Amount for each applicable OPERS Property is generally 125% or 135% of the
related Allocated Principal Amount and is set forth below. Defeasance is only
permitted upon the satisfaction of certain conditions, including, among other
things, confirmation from the Rating Agencies that such defeasance will not
result in a withdrawal, downgrade or qualification of the then current ratings
on the Certificates, satisfaction of certain debt service coverage ratio tests
with respect to the remaining OPERS Properties and delivery of certain legal
opinions and documentation. In addition, provided that no event of default
exists under the OPERS Loan documents, and prior to the Anticipated Repayment
Date, the OPERS Borrowers are permitted to accomplish a one-time substitution of
certain of the OPERS Properties. Only certain of the OPERS Properties may be
substituted by the OPERS Borrowers and no more than two simultaneous property
substitutions are permitted. In connection with any substitution, the OPERS
Borrowers are required to satisfy certain conditions, including, among other
things, that any such substitute property is of the same type and quality of the
property to be released, satisfaction of certain debt service coverage ratios
and other underwriting tests, confirmation from the Rating Agencies that such
substitution will not result in a withdrawal, downgrade or qualification of the
then current ratings on the Certificates, and delivery of certain legal opinions
and property and underwriting documentation. Those OPERS Properties as to which
substitution is permitted are set forth below:
OPERS ALLOCATED PRINCIPAL AMOUNTS AND SUBSTITUTION RIGHTS
<TABLE>
<CAPTION>
ALLOCATED
PRINCIPAL RELEASE SUBSTITUTION
PROPERTY NAME AMOUNT RATIO AMOUNT PERMITTED
- ------------------------------------------------------ -------------- ----------- -------------- -------------------
<S> <C> <C> <C> <C>
Riviera Centre Factory Stores......................... $ 35,000,000 135% $ 47,250,000 No
Hilton Head Factory Stores I.......................... $ 11,550,000 135% $ 15,592,500 No
Hilton Head Factory Stores II......................... $ 8,525,000 135% $ 11,508,750 No
Lakes Region Factory Stores........................... $ 14,120,000 125% $ 17,650,000 Yes
The Factory Stores at Lincoln City.................... $ 18,800,000 125% $ 23,500,000 Yes
Myrtle Beach Factory Stores........................... $ 24,850,000 135% $ 33,547,500 No
The Factory Stores at Park City....................... $ 13,675,000 125% $ 17,093,750 Yes
Rehoboth Outlets (I).................................. $ 13,625,000 135% $ 18,393,750 No
Rehoboth Outlets (II)................................. $ 22,400,000 135% $ 30,240,000 No
Rehoboth Outlets (III)................................ $ 6,775,000 135% $ 9,146,250 No
The Factory Stores at Tuscola......................... $ 14,430,000 125% $ 18,037,500 Yes
Westbrook Factory Stores.............................. $ 16,250,000 125% $ 20,312,500 Yes
</TABLE>
VALUE. The OPERS Loan has a 48.58% Cut-off Date LTV based upon an appraised
value of $411,390,000.
DSC RATIO. The OPERS Loan has an Underwritten NCF DSCR of 2.31x.
S-39
<PAGE>
PROPERTY MANAGEMENT. The OPERS Properties are managed by Charter Oak Group,
Ltd., a Delaware corporation. The OPERS Borrowers may not replace the property
manager without obtaining the approval of the holder of the OPERS Loan and
receipt by such holder of confirmation from the Rating Agencies that such
replacement will not result in a withdrawal, downgrade or qualification of the
then current ratings on the Certificates. Furthermore, the holder of the OPERS
Loan may terminate the property manager for certain events including but not
limited to an event of default under the management agreement or an event of
default under the OPERS Loan documents.
LOCKBOX AND CASH SHORTFALL ACCOUNT. All rents payable in respect of the
OPERS Properties are required to be deposited into a lockbox account controlled
by the holder of the OPERS Loan. In the event that a debt service coverage ratio
of 2.0x is not maintained on the OPERS Loan, the OPERS Borrowers are required to
deposit into a cash escrow account controlled by the holder of the OPERS Loan an
amount (the "Shortfall Amount") equal to the difference between actual net
operating income and a hypothetical amount of net operating income which would
have enabled the OPERS Properties to achieve a debt service coverage ratio of
2.0x. Any such deposits serve as additional collateral for repayment of the
OPERS Loan and are not returned to the OPERS Borrowers until such time as the
holder of the OPERS Loan determines that the Shortfall Amount has been reduced
to zero.
AFFILIATE DEBT. The OPERS Borrowers are permitted to incur unsecured
indebtedness to OPERS to pay operating expenses associated with the related
OPERS Property provided that the amount of any such debt, together with such
property's related outstanding allocated principal amount, will not cause such
property's loan to value ratio to exceed 75%. Any such loans must be subject to
a subordination and standstill agreement acceptable to the holder of the OPERS
Loan and at all times must be held by OPERS.
THE ARDEN LOAN
THE LOAN. The "Arden Loan", was originated by the Lehman Seller, has a
Cut-off Date Balance of $136,100,000, representing 5.31% of the Initial Pool
Balance, and is secured by a first mortgage (the "Arden Mortgage") encumbering
the related borrower's fee simple interest in 22 suburban office and
R&D/industrial properties (the "Arden Properties") located throughout the Los
Angeles and San Diego, California metropolitan areas. The Arden Loan was made to
a special purpose entity (the "Arden Borrower"), controlled by Arden Realty,
Inc. ("Arden Realty"). As of June 1, 1998, Arden Realty owned 128 properties
composing more than 200 buildings and 16.5 million square feet. Arden Realty is
a publicly traded "real estate investment trust" ("REIT") on the New York Stock
Exchange ("ARI").
The Arden Loan is an ARD Loan with an Anticipated Repayment Date of April
16, 2008 and a final maturity of April 16, 2028. Payments of interest only are
due on the Arden Loan in years one to five. In years six to ten, amortization is
based on a 25 year schedule. The fixed Mortgage Rate on the Arden Loan is 6.74%
per annum; however, after the related Anticipated Repayment Date, the Revised
Rate on the Arden Loan will increase to the greater of (i) the then applicable
United States Treasury rate, plus 5%, and (ii) the original Mortgage Rate, plus
5%, until the loan is repaid in full.
The Arden Borrower is prohibited from voluntarily prepaying the Arden Loan
prior to the related Anticipated Repayment Date. The Arden Borrower may defease
the Arden Loan with United States Treasury obligations beginning two years from
the Delivery Date.
THE ARDEN PROPERTIES. The Arden Properties consist of 15 suburban office
and seven R&D/industrial properties located in the Los Angeles and San Diego,
California metropolitan areas. The combined total net rentable area of the Arden
Properties is approximately 2,252,678 square feet. The current occupancy rate is
97%.
S-40
<PAGE>
The following table summarizes the Arden Properties' net rentable area
("NRA").
NET RENTABLE AREA OVERVIEW
<TABLE>
<CAPTION>
SQUARE % TOTAL
FOOTAGE NRA
----------- ----------
<S> <C> <C>
Office..................................................................................... 1,601,943 71.1%
R&D/Industrial............................................................................. 650,735 28.9%
----------- ----------
Total Rentable Area........................................................................ 2,252,678 100.0%
</TABLE>
FIFTEEN LARGEST TENANTS (1)
<TABLE>
<CAPTION>
MONTHS RENTABLE TOTAL % TOTAL
REMAINING IN SQUARE AS % OF ANNUAL BASE
TENANT LEASE TERM (2) FEET TOTAL NRA BASE RENT RENT
- ----------------------------------------- ------------------- ----------- --------------- -------------- -----------
<S> <C> <C> <C> <C> <C>
Disney................................... 62 98,802 4.4% $ 2,240,832 6.7%
Aurora Biosciences....................... 124 81,204 3.6% 1,632,888 4.9%
Pacific South West Bank Lending.......... 117 125,000 5.5% 1,627,500 4.9%
Cymer, Inc............................... 139 155,612 6.9% 1,610,580 4.8%
Foundation Health KalCorp................ 64 71,946 3.2% 1,432,925 4.3%
University of Phoenix.................... 67 72,771 3.2% 1,274,365 3.8%
Qualcomm................................. 58 69,386 3.1% 1,029,133 3.1%
SensorMedics Corp........................ 79 119,966 5.3% 958,290 2.9%
Curtain Matheson Science................. 9 99,119 4.4% 872,173 2.6%
Sedgewick James.......................... 110 37,818 1.7% 718,604 2.2%
State Farm............................... 45 24,182 1.1% 543,510 1.6%
Ahmanson Development..................... 21 23,820 1.1% 480,128 1.4%
Pacific Scientific Co.................... 15 71,148 3.2% 473,682 1.4%
Aerotak, Inc............................. 52 25,335 1.1% 404,310 1.2%
Royal Mortgage/Conti..................... 21 24,319 1.1% 390,516 1.2%
----------- --- -------------- ---
Total/% of Portfolio..................... 1,100,428 48.8% $ 15,689,435 47.0%
</TABLE>
- ------------------------
(1) Certain tenants lease space in multiple properties
(2) Represents weighted average of remaining lease terms where multiple leases
are involved.
S-41
<PAGE>
AGGREGATE LEASE EXPIRATION SCHEDULE
<TABLE>
<CAPTION>
PERCENTAGE OF
SQUARE FOOTAGE OF TOTAL LEASED
YEAR EXPIRING LEASES SQUARE FEET
- -------------------------------------------------------------------------------- ------------------ -------------
<S> <C> <C>
1998............................................................................ 130,356 5.8%
1999............................................................................ 344,359 15.3%
2000............................................................................ 168,566 7.5%
2001............................................................................ 237,790 10.6%
2002............................................................................ 263,782 11.7%
2003............................................................................ 450,254 20.0%
2004............................................................................ 176,506 7.8%
2005............................................................................ 21,470 1.0%
2006............................................................................ 0 0.0%
2007............................................................................ 37,818 1.7%
2008............................................................................ 206,204 9.2%
2009............................................................................ 0 0.0%
2010+........................................................................... 155,612 6.9%
Vacant.......................................................................... 59,961 2.7%
------------------ ------
Total........................................................................... 2,252,678 100.0%
</TABLE>
PROPERTY MANAGEMENT. Arden is the largest publicly traded owner of office
space in Southern California, measured in net rentable square feet owned. Arden
manages more than 200 buildings, with a combined total of 16.5 million square
feet. The Arden loan documents provide that the management agreement be
terminated upon an event of default under the loan.
VALUE. The Arden Loan has a Cut-off Date LTV Ratio of 51.4% based upon a
Lehman Seller valuation of $264,595,517. Such value was established by applying
a 8.94% cap rate to an assumed annual net operating income of $237,000,000.
DSC RATIO. The Arden Loan has an Underwritten NCF DSCR of 2.19x (based on
the current interest-only Monthly Payment).
LOCK BOX. If, among other things, there occurs certain events of default
under the Arden Loan, the loan has not been repaid in full by the Anticipated
Repayment Date, or the debt service coverage for the preceding four consecutive
accounting quarters falls below 1.50x (or 1.27x for any such four quarter period
beginning on or after April 1, 2003), the Arden Borrower must establish a
lockbox account controlled by the Servicer and instruct the tenants of the Arden
Properties to make payment of all rents to such lockbox.
RELEASES AND SUBSTITUTIONS. At any time following the commencement of the
period during which the Arden Loan may be defeased, the Arden Borrower may
obtain a release of the lien of the Arden Mortgage to the extent it encumbers
one or more Arden Properties (a "Substituted Property") by substituting therefor
one or more office properties acquired by the Arden Borrower (individually, a
"Substitute Property" and collectively, the "Substitute Properties"), provided
that (a) no such substitution may occur after the related Anticipated Repayment
Date, (b) such substitution shall not be allowed more than two (2) times during
the term of the Arden Loan, (c) not more than five (5) Arden Properties
S-42
<PAGE>
may be released from the lien of the Arden Mortgage during the term of the Arden
Loan in connection any such substitution and (d) the following conditions, among
others, have been satisfied:
(i) after giving effect to the substitution, the debt service coverage
ratio for the Arden Properties (including the Substitute Properties but
excluding the Substituted Properties) is at least equal to the greater of
(A) 2.22x (on or before April 16, 2003) or 1.81x (on or after April 17,
2003), and (B) the debt service coverage ratio for the Arden Loan for all
of the Arden Properties immediately preceding the substitution;
(ii) the net operating income and debt service coverage ratio (for the
twelve (12) month period immediately preceding the substitution) for the
Substituted Property or Substitute Properties, as applicable (calculated
in accordance with the related loan agreement based on release prices),
is greater than 125% of the net operating income and debt service
coverage ratio (for the twelve (12) month period immediately preceding
the substitution) for the Substituted Property or Substituted Properties
then being substituted; and
(iii) the lender has received written confirmation from the Rating Agencies
that no rating of the Certificates will be qualified, downgraded or
withdrawn as a result of the substitution.
THE BOYKIN LOAN
THE LOAN. The "Boykin Loan", was originated by the Lehman Seller, has a
Cut-off Date Balance of $130,000,000, representing 5.07% of the Initial Pool
Balance, and is secured by ten (10) first mortgages (collectively the "Boykin
Mortgage") encumbering the fee simple interests in nine Doubletree flagged hotel
properties and the leasehold interest in one Doubletree flagged hotel. The
hotels are located in six Western and Midwestern states, with three in each of
Washington and Oregon, and one in each of California, Nebraska, Idaho and
Colorado (the "Boykin Properties"). The Boykin Loan was made to a special
purpose entity (the "Boykin Borrower"), affiliated with Boykin Lodging Company
("Boykin Lodging"). As of June 1, 1998, Boykin Lodging controlled 30 hotels with
over 8,400 rooms. Boykin Lodging is a publicly traded REIT on the New York Stock
Exchange ("BOY").
The Boykin Loan is an ARD Loan with an Anticipated Repayment Date of June 2,
2008 and a final maturity of June 2, 2023. Payments of interest only are due on
the Boykin Loan for the first two years. The loan will amortize on a 25 year
schedule for years 3 to 10. The fixed Mortgage Rate on the Boykin Loan is 6.90%
per annum; however, after the related Anticipated Repayment Date, the Revised
Rate on the Boykin Loan will increase to the greater of (i) the then applicable
Treasury Rate, plus 5%, and (ii) the original Mortgage Rate, plus 5%, until the
loan is repaid in full.
The Boykin Borrower is prohibited from voluntarily prepaying the Boykin Loan
until the Anticipated Repayment Date. After the earlier to occur of 3 years from
the closing of the loan or 2 years from Delivery Date (the "Defeasance Period"),
but prior to the Anticipated Repayment Date, Boykin Properties may be released
from the lien of the Boykin Mortgage subject to United States Treasury
defeasance of the applicable release price of the property or properties to be
released. The release prices are 125% of the allocated loan amount for all the
Boykin Properties except the Omaha property, for which it is 160%.
THE PROPERTIES. The Boykin Properties are controlled by Boykin Lodging. The
Boykin Properties consist of 10 hotels described in the table below. The hotels
are operated under the Doubletree brand name, and range in size from 208 to 476
rooms. Each of the hotels is leased to Westboy, LLC ("Westboy"), pursuant to an
operating lease, which operating lease is subordinate to the Boykin Loan.
Westboy is a special purpose entity whose sole member is Boykin Management
Company Limited
S-43
<PAGE>
Liability Company ("BMC"). The members of BMC are The Boykin Group, Inc. and
Purchasing Concepts, Inc. (see management below).
<TABLE>
<CAPTION>
NO. OF YR. BUILT/ AVG.
HOTEL LOCATION ROOMS RENOVATED OCCUP ADR REVPAR
- --------------------------------- ------------------------ ----------- ------------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Portland Lloyd Center............ Portland, OR 476 1995 71.1% $ 98.37 $ 69.90
Sacramento....................... Sacramento, CA 448 1995 74.0 87.62 64.84
Omaha Downtown................... Omaha, NE 413 1993 75.5 73.52 55.53
Boise Riverside.................. Boise, ID 304 1995 69.4 83.35 57.83
Colorado Springs................. Colorado Springs, CO 299 1996 76.2 86.38 65.79
Spokane Valley................... Spokane, WA 237 1996 54.3 67.95 36.91
Portland Downtown................ Portland, OR 235 1995 71.1 98.37 69.90
Eugene/Springfield............... Eugene, OR 234 1995 64.8 57.31 37.15
Bellevue Center.................. Bellevue, WA 208 1997 74.5 94.37 70.30
Yakima Valley.................... Yakima, WA 208 1996 57.4 67.49 38.94
----- --- --------- -----------
Total/Weighted Avg:.............. 3,062 70.0 84.27 58.95
<CAPTION>
HOTEL VALUE
- --------------------------------- -------------
<S> <C>
Portland Lloyd Center............ $ 69,000,000
Sacramento....................... 50,000,000
Omaha Downtown................... 21,000,000
Boise Riverside.................. 27,000,000
Colorado Springs................. 35,200,000
Spokane Valley................... 11,000,000
Portland Downtown................ 24,900,000
Eugene/Springfield............... 10,500,000
Bellevue Center.................. 19,500,000
Yakima Valley.................... 8,500,000
-------------
Total/Weighted Avg:.............. 276,600,000
</TABLE>
Note: All Hotels are operated under the Doubletree flag.
LOCKBOX. Upon the expiration or termination of the property management
agreement or the completion of a foreclosure, the Boykin Borrower must establish
a lockbox account controlled by the Servicer and cause the deposit of all hotel
income from the Boykin Properties to be deposited in such lockbox.
PROPERTY MANAGEMENT. The Boykin Properties are all subject to a long term
management agreement with Red Lion Hotels, Inc., a wholly-owned subsidiary of
Doubletree Hotels, which expires pursuant to its terms on April 5, 2012. The
agreement is not terminable by Westboy except in the event of a default by the
manager. The base management fee is 3% of gross revenue. The management fee
structure also provides for incentive payments to Red Lion Hotels, if certain
base levels of operating cash flow are achieved. The management agreement is
terminable by the lender upon completion of foreclosure or upon an event of
default under the property management agreement.
VALUE. The Boykin Loan has a Cut-off Date LTV of 47.0% based upon the
appraised value of the Boykin Properties of $276,600,000.
DSC RATIO. The Underwritten NCF DSCR of the Boykin Loan is 2.30x (based on
the amortizing Monthly Payment).
ADDITIONAL INDEBTEDNESS. No subordinate financing is permitted on any of
the Boykin Properties nor is the pledge of interests in the Boykin Borrower
permitted.
TRANSFER OF OWNERSHIP INTERESTS. The Boykin Mortgage prohibits the transfer
of the interests in the Boykin Properties or in the Boykin Borrower without the
consent of lender under the Boykin Loan, except in connection with a release of
a hotel property in connection with (1) the defeasance of the Boykin Loan or (2)
a substitution of the hotel properties in accordance with the Boykin Loan
documents, where each of such releases are conditioned upon written confirmation
by the Rating Agencies of no downgrade, withdrawal or qualification of the
ratings of the Certificates. Lender has the right to condition its consent to
transfers requested by Borrower upon the approval by the rating agencies of the
proposed transferee.
RELEASES AND SUBSTITUTIONS. Provided no event of default has occurred,
prior to the Anticipated Repayment Date, the Boykin Borrower shall have the
right to obtain a release of one or more of the Boykin Properties (up to a
maximum of five) from the lien of the Boykin Mortgage upon the substitution of
another hotel property of comparable type and quality provided certain terms and
conditions are satisfied, including, without limitation, (1) loan-to-value after
giving effect to the substitution must not be greater than the lesser (x) the
loan-to-value at origination and (y) the loan-to-value immediately preceding the
release and substitution, (2) debt service coverage, after giving effect to the
release and
S-44
<PAGE>
substitution, must be greater or equal to the greater of (x) debt service
coverage at origination, and (y) debt service coverage for the 12-month period
preceding the second month preceding the release and substitution and (3) the
aggregate allocated loan amounts applicable to all of the Boykin Properties
subject to a substitution release shall not exceed $39,000,000. Prior to the
Defeasance Period only the Eugene/Springfield, Bellevue Center, Spokane Valley
and Yakima Valley hotels (collectively, the "Washington/Oregon Hotels") shall be
eligible for substitution and after the Defeasance Period any of the Boykin
Properties may be eligible for substitution. Notwithstanding anything to the
contrary in the Boykin Loan documents, in the event that the Boykin Borrower is
unable to deliver a substitute hotel property simultaneously with a substitution
release, and the substitution release occurs after the Defeasance Period, the
Boykin Borrower may still release one or more of the Washington/Oregon Hotels
upon the satisfaction of certain conditions, including, without limitation, (A)
the deposit by the Boykin Borrower of funds in an eligible escrow account held
by the lender in an amount sufficient to purchase defeasance collateral
sufficient to defease a portion of the related Mortgage Note equal to the
applicable release price and (B) the delivery by the Boykin Borrower at the time
of the substitution release and the establishment of the escrow account of
written confirmation from the Rating Agencies that the substitution release and
the establishment of the escrow account shall not result in a withdrawal,
downgrade or qualification of the ratings of the Certificates. If the Boykin
Borrower does not deliver a substitute property within six months of the
substitution release and establishment of the escrow account, the Boykin
Borrower shall immediately defease an amount equal to applicable release price
and the funds in the escrow account shall be used to purchase defeasance
collateral.
THE SOUTH TOWNE LOAN
The "South Towne Loan", was originated by the Lehman Seller, has a Cut-off
Date Balance of $64,000,000, representing 2.50% of the Initial Pool Balance, and
is secured by a blanket first mortgage (the "South Towne Mortgage") encumbering
the fee simple interest of Macerich South Towne Limited Partnership ("South
Towne") in South Towne Center and the fee simple interest of Macerich ST
Marketplace Limited Partnership ("Marketplace"; and together with South Towne,
the "South Towne Borrower") in South Towne Marketplace. South Towne Center is a
two level, 940,943 square foot regional mall, and South Towne Marketplace is an
adjacent 305,000 square foot power center (together with the outparcels, the
"South Towne Property"). The South Towne Property is located in Sandy, Utah, a
suburb of Salt Lake City. Each of Marketplace and South Towne is a special
purpose entity, controlled by The Macerich Company ("Macerich"). As of June 2,
1998, Macerich controlled 40 regional malls and 4 community centers with
approximately 35 million square feet of space. Macerich is a publicly traded
REIT on the New York Stock Exchange ("MAC").
The South Towne Loan is an ARD Loan with an Anticipated Repayment Date of
August 10, 2008 and a final maturity of August 10, 2033. Payments of interest
only are due on the South Towne Loan until its Anticipated Repayment Date. The
fixed Mortgage Rate on the South Towne Loan is 6.61% per annum; however, after
the related Anticipated Repayment Date, the Revised Rate on the South Towne Loan
will equal the greater of (i) the then applicable United States Treasury Rate,
plus 3%, and (ii) the original Mortgage Rate, plus 3%, until the loan is repaid
in full.
The South Towne Borrower is prohibited from voluntarily prepaying the South
Towne Loan prior to the related Anticipated Repayment Date. The South Towne
Borrower may defease the South Towne Loan with United States Treasury
obligations beginning two years from the Delivery Date. In addition, the South
Towne Borrower may partially defease the South Towne Loan and cause the release
of South Towne Marketplace with a United States Treasury defeasance, based upon
$15,200,000, which is 125% of the allocated loan amount relating to such
property.
THE PROPERTY. South Towne Center is a two level, 940,943 square foot
regional mall, and South Towne Marketplace is an adjacent 305,000 square foot
power center. Both are located in Sandy, Utah, a suburb of Salt Lake City. The
property site covers 146 acres and includes 6,594 parking spaces. South
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<PAGE>
Towne Center was originally built in 1986 and has received numerous expansions
and upgrades, including a significant expansion in 1997. This recent expansion
included the addition of the largest Dillard's in Utah. The South Towne
Marketplace was built in 1996.
South Towne Center has four anchor tenants, JC Penney, Mervyn's, ZCMI and
Dillard's. These four anchor tenants occupy 597,000 square feet, or 48.2% of the
gross leaseable area of the South Towne Center. Included in such 597,000 square
feet is 297,000 square feet of gross leaseable area that is owned and occupied
by Mervyn's and Dillard's, which are not collateral for the loan. South Towne
Marketplace consists of 305,000 square feet of gross leaseable area. Eight
outparcels, which house a movie theatre, several restaurants and one
freestanding store are also collateral for the South Towne Loan. South Towne
Center and Marketplace, together with the eight outparcels comprise
approximately 1,238,000 square feet of gross leaseable area, including the
297,000 square feet that are not collateral for this loan.
The following table summarizes the breakdown of gross leaseable area
("GLA").
SOUTH TOWNE PROPERTY GLA OVERVIEW
<TABLE>
<CAPTION>
SQUARE % TOTAL
FOOTAGE GLA
----------- -----------
<S> <C> <C>
Dillard's*................................................................................. 212,223 17.1%
ZCMI....................................................................................... 200,000 16.2%
JC Penney.................................................................................. 100,237 8.1%
Mervyn's*.................................................................................. 84,392 6.8%
----------- -----
Subtotal................................................................................... 596,852 48.2%
In-line Mall Space......................................................................... 253,997 20.5%
Outparcels................................................................................. 81,944 6.6%
----------- -----
South Towne Center GLA..................................................................... 932,793 75.4%
South Towne Marketplace.................................................................... 304,775 24.6%
----------- -----
Total Retail GLA........................................................................... 1,237,568 100.0%
Note: Total Mortgaged GLA.................................................................. 940,943
</TABLE>
- ------------------------
*Not part of the Mortgaged Property.
TEN LARGEST MALL STORE TENANTS (SOUTH TOWNE CENTER)
<TABLE>
<CAPTION>
DATE OF
TENANT SQUARE FEET LEASE EXPIRATION
- --------------------------------------------------------------------------------- ------------- ----------------
<S> <C> <C>
Gap/Gap Kids..................................................................... 10,950 1/2008
Lerner New York.................................................................. 9,857 9/2004
Express/Bath & Body Works........................................................ 8,501 4/2007
Eddie Bauer...................................................................... 6,436 1/2008
Famous Footwear.................................................................. 5,525 6/2005
Camelot Music.................................................................... 5,393 1/2005
Lane Bryant...................................................................... 5,354 Mo. To Mo.
Athletic Fitters................................................................. 5,341 12/2007
B. Dalton........................................................................ 5,245 1/2001
Victoria's Secret................................................................ 4,912 4/2007
-------------
Total............................................................................ 67,514
</TABLE>
S-46
<PAGE>
OUTPARCEL STORE TENANTS (1)
<TABLE>
<CAPTION>
DATE OF
TENANT SQUARE FEET LEASE EXPIRATION
- --------------------------------------------------------------------------------- ------------- ----------------
<S> <C> <C>
Cineplex Odeon................................................................... 35,826 12/2010
HomeTown Buffet.................................................................. 10,200 6/2009
Pier 1........................................................................... 10,011 2/2001
Bennett's BBQ.................................................................... 6,600 3/2007
TGI Friday....................................................................... 6,200 4/2015
Village Inn...................................................................... 5,377 3/2007
Chili's.......................................................................... 5,230 1/2011
Schlotsky's Deli................................................................. 2,500 10/2010
-------------
Total............................................................................ 81,944
</TABLE>
- ------------------------
(1) With the exception of Pier 1, all outparcel tenants are on ground leases
SOUTH TOWNE MARKETPLACE
<TABLE>
<CAPTION>
DATE OF
TENANT SQUARE FEET LEASE EXPIRATION
- --------------------------------------------------------------------------------- ------------ ----------------
<S> <C> <C>
Target (1)....................................................................... 179,945 10/2016
Gart Sports...................................................................... 44,160 1/2012
Linens N'Things.................................................................. 33,020 1/2012
Barnes & Noble................................................................... 26,640 9/2011
Old Navy......................................................................... 14,460 7/2006
Black Angus...................................................................... 6,550 12/2016
------------
Total............................................................................ 304,775
</TABLE>
- ------------------------
(1) Target is on a ground lease
LEASE EXPIRATION SCHEDULE (SOUTH TOWNE CENTER)
IN-LINE AND OUTPARCEL LEASE EXPIRATION SCHEDULE
<TABLE>
<CAPTION>
NUMBER
YEAR OF LEASES EXPIRING SF % TOTAL SF
- --------------------------------------------------------------------------- --------------- ------------ ---------------
<S> <C> <C> <C>
1998....................................................................... 4 7,172 0.8%
1999....................................................................... 9 8,619 0.9%
2000....................................................................... 3 4,011 0.4%
2001....................................................................... 8 25,130 2.7%
2002....................................................................... 13 20,442 2.2%
2003....................................................................... 6 9,481 1.0%
2004....................................................................... 16 34,646 3.7%
2005....................................................................... 8 23,560 2.5%
2006....................................................................... 10 16,826 1.8%
2007....................................................................... 14 49,459 5.3%
2008....................................................................... 13 50,119 5.4%
5 Year Average Rollover.................................................... 13,075
7 Year Average Rollover.................................................... 15,643
</TABLE>
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<PAGE>
VALUE. The South Towne Loan has a Cut-off Date LTV Ratio of 61.1% based
upon a Lehman Seller valuation of $105.5 million. Such value was determined by
applying 8.75% cap rate on a Lehman Seller assumed annual net operating income.
DSC RATIO. The South Towne Loan has a Underwritten NCF DSCR of 2.05x.
LOCK BOX. If, among other things, there occur certain events of default
under the South Towne Loan, the South Towne Loan has not been repaid in full on
or before the Anticipated Repayment Date, or the debt service coverage ratio for
the immediately preceding twelve month period falls below 1.50x, the South Towne
Borrower must establish a lockbox account to be controlled by the Servicer and
instruct the tenants of the South Towne Property to make payment of all rents to
such account.
PROPERTY MANAGEMENT. Macerich now manages 40 malls with over 35 million
square feet. The company has been a publicly traded REIT since 1994. The South
Towne loan documents provide that the management agreement may be terminated
upon an event of default under the loan.
THE GROVE LOAN
The "Grove Loan" was originated by the Lehman Seller, has a Cut-off Date
Balance of $63,000,000, which represents 2.50% of the Initial Pool Balance, is
secured by a first mortgage (the "Grove Mortgage") encumbering the related
borrower's fee simple interest on each of 17 multifamily properties (the "Grove
Properties") containing 1,950 apartments. The Grove Properties are located in
Southern New England. The Grove Loan was made to special purpose entities (the
"Grove Borrowers"), affiliated with Grove Property Trust ("Grove"). As of June
1, 1998, Grove controlled 39 apartment communities with over 4,100 units. Grove
is a publicly traded REIT on the American Stock Exchange ("GVE").
The Grove Loan is an ARD Loan with an Anticipated Repayment Date of June 1,
2008 and a final maturity of June 1, 2033. Payments of interest only are due on
the Grove Loan until the related Anticipated Repayment Date. The fixed Mortgage
Rate on the Grove Loan is 6.59% per annum; however, after the related
Anticipated Repayment Date, the Revised Rate on the Grove Loan will equal the
greater of (i) the then applicable United States Treasury rate, plus 5%, and
(ii) the original Mortgage Rate, plus 5%, until the loan is repaid in full.
The Grove Property Trust Borrower is prohibited from voluntarily prepaying
the Grove Loan prior to the related Anticipated Repayment Date. After the second
anniversary of the Delivery Date, release of Grove Properties is permitted with
a 125% release premium and United States Treasury defeasance.
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<PAGE>
THE PROPERTIES. The Grove Properties are controlled by Grove Property
Trust. The Grove Properties consists of 17 multifamily properties described in
the table below.
<TABLE>
<CAPTION>
CURRENT
NO. OF YEAR BUILT/ ECONOMIC
PROPERTY LOCATION UNITS RENOVATED OCCUPANCY
- -------------------------------------- -------------------------------------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Four Winds............................ Fall River, MA 168 1987/94 95.7%
Brooksyde............................. West Hartford, CT 80 1949/97 97.5
River's Bend (1)...................... Windsor, CT 355 1972/96 97.0
Summit & Birch Hill................... Farmington, CT 185 1967 95.1
Colonial Village...................... Plainville, CT 104 1968 93.1
Royale................................ Cranston, RI 76 1971 96.1
Fox Hill.............................. Enfield, CT 168 1974 92.5
Bradford Commons...................... Newington, CT 65 1964 92.0
Burgundy Studio....................... Middletown, CT 102 1973 97.0
Fox Hill Commons...................... Vernon, CT 74 1968 94.4
Loomis Manor.......................... West Hartford, CT 43 1948 100.0
Woodbridge............................ Newington, CT 73 1968 93.5
Security Manor........................ Westfield, MA 63 1979 98.1
Van Deene Manor....................... West Springfied, MA 111 1970 97.1
Avon Place Condominiums (2)........... Avon, CT 147 1973 98.8
Coachlight Village.................... Agawam, MA 88 1966 98.9
Dean Estates.......................... Cranston, RI 48 1976 95.9
----- -----
Total/Weighted Avg: 1,950 96.0
----- -----
----- -----
</TABLE>
- ------------------------
(1) Part of a 432 unit condominium development
(2) Part of a 188 unit condominium development
PROPERTY MANAGEMENT. The Grove Properties are managed by directly by the
Grove L.P. Grove and its affiliates own and manage 39 apartment communities
comprising over 4,100 units and 125,000 square feet of retail space.
VALUE. The Grove Loan has a Cut-off Date LTV Ratio of 62.4% based upon the
appraised value of the Properties of $100,900,000.
DSC RATIO. The Debt Service Coverage Ratio of the Grove Loan is 2.11x.
LOCK BOX. If there occurs an event of default under the Grove Loan, if the
loan has not been repaid in full by the Anticipated Repayment Date, or if the
debt service coverage for the Grove Loan falls below 1.20x, the Grove Borrowers
may be required to establish a lockbox account controlled by the Servicer and
instruct the tenants of the Grove Properties to make payment of all rents to
such lockbox.
RELEASES AND SUBSTITUTIONS. A Grove Borrower may obtain a release of the
lien of the related Grove Mortgage encumbering an individual Grove Property (a
"Substituted Property") by substituting therefor another multifamily property
acquired by such borrower (individually, a "Substitute Property" and
collectively, the "Substitute Property"), provided that: (a) no such
substitution may occur after the related Anticipated Repayment Date; (b) the
allocated loan amounts of any proposed Substituted Property when added to the
allocated loan amounts of all prior Substituted Property do not exceed one-third
of the outstanding principal amount of the Grove Loan; and (c) the following
conditions, among others, have been satisfied:
(i) After giving effect to the substitution, (A) the Grove Borrowers' debt
service coverage ratio for the prior twelve (12) month period for all of
the Grove Properties (including the Substitute Property but excluding the
Substituted Property) is not less than the greater of the Grove
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<PAGE>
Borrowers' debt service coverage ratio for such period for all of the
Grove Properties (including the Substituted Property but excluding the
Substitute Property) as of the origination date and as of the date
immediately preceding the substitution; and (B) the Grove Borrowers'
loan-to-value ratio for all of the Grove Properties (including the
Substitute Property but excluding the Substituted Property) is not more
than the lesser of the loan-to-value ratio for all of the Grove
Properties (including the Substituted Property but excluding the
Substitute Property) as of the origination date and as of the date
immediately preceding the substitution.
(ii) The net operating income and debt service coverage ratio (for the
twelve (12) month period immediately preceding the substitution) for the
Substitute Property is equal to or greater than the net operating income
and debt service coverage ratio (for the twelve (12) month period
immediately preceding the substitution) for the related Substituted
Property; and
(iii) Lender shall have received evidence in writing from the Rating
Agencies to the effect that such substitution will not result in a
withdrawal, qualification or downgrade of the respective ratings in
effect immediately prior to such substitution for the Certificates that
are then outstanding.
THE MORTGAGE LOAN SELLERS
GMACCM. GMACCM, a corporation organized under the laws of the State of
California and an affiliate of the Depositor, is an indirect wholly-owned
subsidiary of GMAC Mortgage Group, Inc., which in turn is a wholly-owned direct
subsidiary of General Motors Acceptance Corporation. The principal offices of
GMACCM are located at 650 Dresher Road, Horsham, Pennsylvania 19044. Its
telephone number is (215) 328-4622.
LEHMAN SELLER. The Lehman Seller is an affiliate of Lehman Brothers Inc.,
one of the Underwriters. The principal offices of the Lehman Seller are located
at 3 World Financial Center, New York, New York 10285. Its telephone number is
(212) 526-7000.
The information set forth herein concerning the Mortgage Loan Sellers and
the underwriting conducted by each with respect to the Mortgage Loan has been
provided by the respective Mortgage Loan Sellers, and neither the Depositor nor
the Underwriters make any representation or warranty as to the accuracy or
completeness of such information.
CERTAIN UNDERWRITING MATTERS
ENVIRONMENTAL ASSESSMENTS. All but ten (10) of the Mortgaged Properties
(which ten (10) Mortgaged Properties secure Credit Lease Loans representing
1.82% of the Initial Pool Balance), were subject to a Phase I environmental site
assessment (or an update of a previously conducted assessment), and in the case
of certain Mortgage Loans, a Phase II environmental site assessment, which was
performed on behalf of the related Mortgage Loan Seller, or as to which the
related report was delivered to the related Mortgage Loan Seller in connection
with its origination or acquisition of the related Mortgage Loan. With respect
to all but five (5) of the Mortgage Loans (which five (5) represent 8.20% of the
Initial Pool Balance), such environmental assessments or updates thereof were
conducted within the 12-month period prior to the Cut-off Date for such Mortgage
Loan. No such environmental assessment revealed any material adverse
environmental condition or circumstance with respect to any Mortgaged Property,
except for: (i) those cases where such conditions were remediated or abated or a
use restriction was imposed prior to the Delivery Date; (ii) those cases in
which an operations and maintenance plan or periodic monitoring of such
Mortgaged Property or nearby properties was recommended; (iii) those cases
involving a leaking underground storage tank or groundwater contamination at a
nearby property, which condition had not yet materially affected such Mortgaged
Property and as to which a responsible party has either been identified under
applicable law or was then conducting remediation of the related condition; (iv)
those cases in which groundwater, soil or other contamination was identified or
suspected, and an escrow reserve, indemnity or other collateral was provided to
cover the estimated costs of continued monitoring, investigation, testing or
remediation; (v) those cases involving radon; and
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<PAGE>
(vi) those cases where the related borrower has agreed to seek a "case closed"
status for the issue from the applicable governmental agency.
The information contained herein is based on the environmental assessments
and has not been independently verified by the Depositor, the Mortgage Loan
Sellers, the Underwriters, or any of their respective affiliates.
PROPERTY CONDITION ASSESSMENTS. Inspections (or updates of previously
conducted inspections) of substantially all of the Mortgaged Properties were
conducted by independent licensed engineers and/or architects on behalf of the
related Mortgage Loan Seller. Substantially all of such inspections were
conducted within the 12-month period prior to the Cut-off Date for the related
Mortgage Loan. Any Mortgaged Property that was not subject to an engineering
inspection on behalf of the related Mortgage Loan Seller was inspected by
representatives or another designee of the related Mortgage Loan Seller. Such
inspections were generally commissioned to inspect the exterior walls, roofing,
interior construction, mechanical and electrical systems and general condition
of the site, buildings and other improvements located at a Mortgaged Property.
With respect to certain of the Mortgage Loans, the resulting reports indicated a
variety of deferred maintenance items and recommended capital expenditures. In
some (but not all) instances, cash reserves were established to fund such
deferred maintenance and/or replacement items.
APPRAISALS AND MARKET ANALYSIS. With the exception of the Arden Loan and
the South Towne Loan, an appraisal for each Mortgaged Property was performed (or
an existing appraisal updated) on behalf of the related Mortgage Loan Seller.
The Mortgaged Properties securing the Arden Loan and the South Towne Loan were
valued by the Lehman Seller. See "--The Arden Loan" and "--The South Towne Loan"
herein. With respect to all but five (5) of the Mortgage Properties (which five
(5) secure Mortgage Loans which represent 1.47% of the Initial Pool Balance),
such appraisals or market analyses (or updates) were performed for the related
Mortgage Loan during the 12-month period prior to the Cut-off Date. See "Annex
A" herein. Substantially all of such appraisals were conducted by an independent
appraiser that is state certified and/or designated as a Member of the Appraisal
Institute ("MAI"), in order to establish that the appraised value of the related
Mortgaged Property or Properties exceeded the original principal balance of the
Mortgage Loan (or, in the case of a set of related Cross-Collateralized Mortgage
Loans, the aggregate original principal balance of such set). In general, such
appraisals represent the analysis and opinions of the respective appraisers at
or before the time made, and are not guarantees of, and may not be indicative
of, present or future value. There can be no assurance that another appraiser
would not have arrived at a different valuation, even if such appraiser used the
same general approach to and same method of appraising the property. In
addition, appraisals seek to establish the amount a typically motivated buyer
would pay a typically motivated seller. Such amount could be significantly
higher than the amount obtained from the sale of a Mortgaged Property under a
distress or liquidation sale. All of the Lehman Mortgage Loans except the Arden
Loan and the South Towne Loan and, in general, the GMACCM Mortgage Loans
conformed to the appraisal guidelines set forth in Title XI of the Federal
Financial Institutions Reform, Recovery and Enforcement Act of 1989. See "Risk
Factors--The Mortgage Pool--Limitations of Appraisals" herein.
HAZARD, LIABILITY AND OTHER INSURANCE. The Mortgage Loans require that
either: (i) in most cases, the Mortgaged Property be insured by a hazard
insurance policy in an amount (subject to a customary deductible) at least equal
to the lesser of the outstanding principal balance of the related Mortgage Loan
and 100% of the full insurable replacement cost of the improvements located on
the related Mortgaged Property, and if applicable, the related hazard insurance
policy contains appropriate endorsements to avoid the application of
co-insurance and does not permit reduction in insurance proceeds for
depreciation; or (ii) in certain cases, the Mortgaged Property be insured by
hazard insurance in such other amounts as was required by the related
originators. In addition, if any portion of a Mortgaged Property securing any
Mortgage Loan was, at the time of the origination of such Mortgage Loan, in an
area identified in the Federal Register by the Federal Emergency Management
Agency as having special
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<PAGE>
flood hazards, and flood insurance was available, a flood insurance policy
meeting any requirements of the then current guidelines of the Federal Insurance
Administration is in effect with a generally acceptable insurance carrier, in an
amount representing coverage not less than the least of (1) the outstanding
principal balance of such Mortgage Loan, (2) the full insurable value of such
Mortgaged Property, (3) the maximum amount of insurance available under the
National Flood Insurance Act of 1968, as amended and (4) 100% of the replacement
cost of the improvements located on the related Mortgaged Property, except in
certain cases where self insurance was permitted. In general, the standard form
of hazard insurance policy covers physical damage to, or destruction of, the
improvements on the Mortgaged Property by fire, lightning, explosion, smoke,
windstorm and hail, riot or strike and civil commotion, subject to the
conditions and exclusions set forth in each policy.
Each Mortgage generally also requires the related borrower to maintain
comprehensive general liability insurance against claims for personal and bodily
injury, death or property damage occurring on, in or about the related Mortgaged
Property in an amount customarily required by institutional lenders.
Each Mortgage generally further requires the related borrower to maintain
business interruption or rent loss insurance in an amount not less than 100% of
the projected rental income from the related Mortgaged Property for not less
than six months.
In general, the Mortgaged Properties are not insured for earthquake risk.
With respect to Mortgaged Properties located in California, the related Mortgage
Loan Seller generally conducted seismic studies to assess the "probable maximum
loss" for the related Mortgaged Properties. In certain circumstances, the
related borrower was required to obtain earthquake insurance covering the
Mortgaged Properties. Certain of such Mortgaged Properties may be insured in
amounts less than the outstanding principal balances of such Mortgage Loans.
ASSIGNMENT OF THE MORTGAGE LOANS; REPURCHASES AND SUBSTITUTIONS
On or prior to the Delivery Date, each of the Mortgage Loans will be
assigned, without recourse, to the Depositor, and the Depositor will assign all
the Mortgage Loans, without recourse, to the Trustee for the benefit of the
Certificateholders. In connection with the foregoing, generally each Mortgage
Loan Seller is required in accordance with, and subject to the terms of, the
related Mortgage Loan Purchase Agreement to deliver or cause to be delivered the
following documents, among others, with respect to each Mortgage Loan so
assigned by it, to the Depositor or its custodial agent (who will deliver such
documents to the Trustee) or, at the direction of the Depositor, directly to the
Trustee: (a) the original Mortgage Note, endorsed (without recourse) in blank or
to the order of the Trustee; (b) the original or a copy of the related
Mortgage(s), together with originals or copies of any intervening assignments of
such document(s), in each case with evidence of recording thereon (unless such
document(s) have not been returned by the applicable recorder's office); (c) the
original or a copy of any related assignment(s) of rents and leases (if any such
item is a document separate from the related Mortgage), together with originals
or copies of any intervening assignments of such document(s), in each case with
evidence of recording thereon (unless such document(s) have not been returned by
the applicable recorder's office); (d) an assignment of each related Mortgage in
blank or in favor of the Trustee, in recordable form; (e) an assignment of any
related assignment(s) of rents and leases (if any such item is a document
separate from the related Mortgage) in blank or in favor of the Trustee, in
recordable form; (f) any UCC financing statements and original assignments
thereof to the Trustee; (g) an original or copy of the related lender's title
insurance policy (or, if a title insurance policy has not yet been issued, a
commitment for title insurance "marked-up" at the closing of such Mortgage
Loan); and (h) when relevant, the related ground lease or a copy thereof.
The Trustee will be required to review the documents delivered by the
related Mortgage Loan Seller and/or Depositor with respect to each Mortgage Loan
within 60 days following the Delivery Date, and the Trustee will hold the
related documents in trust. If it is found during the course of such review or
at any other time that any of the above-described documents was not delivered
with respect to any Mortgage
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<PAGE>
Loan or that any such document is defective, and in either case such omission or
defect materially and adversely affects the value of the related Mortgage Loan
or the interests of Certificateholders therein, and if the related Mortgage Loan
Seller cannot deliver the document or cure the defect within a period of 90 days
following its receipt of notice of such omission or defect, then the related
Mortgage Loan Seller will be obligated pursuant to the related Mortgage Loan
Purchase Agreement (the relevant rights under which will be assigned by the
Depositor to the Trustee) to repurchase the affected Mortgage Loan within such
90-day period at a price (the "Purchase Price") at least equal to the unpaid
principal balance of such Mortgage Loan, together with any accrued but unpaid
interest thereon to but not including the Due Date in the Collection Period of
the repurchase and any related unreimbursed Servicing Advances (as defined
herein).
In lieu of affecting any such repurchase in the manner set forth above, a
Mortgage Loan Seller is also permitted to substitute a new mortgage loan (a
"Replacement Mortgage Loan") for the affected Mortgage Loan (any Mortgage Loan
repurchased or substituted, a "Deleted Mortgage Loan"). To qualify as a
Replacement Mortgage Loan, the Replacement Mortgage Loan must have certain
financial terms substantially similar to the Deleted Mortgage Loan and meet a
number of specific requirements. In particular, the Replacement Mortgage Loan
must (i) have a Stated Principal Balance (as defined herein) of not more than
the Stated Principal Balance of the Deleted Mortgage Loan, (ii) accrue interest
at a rate of interest at least equal to that of the Deleted Mortgage Loan, (iii)
be a fixed-rate Mortgage Loan, and (iv) have a remaining term to stated maturity
or Anticipated Repayment Date, in the case of an ARD Loan of not greater than,
and not more than two years less than, the Deleted Mortgage Loan (any mortgage
loan meeting such qualifications, a "Qualifying Substitute Mortgage Loan"). In
addition, the Replacement Mortgage Loan must be a "qualified replacement
mortgage" within the meaning of 860G(a)(4) of the Code. Finally, the Mortgage
Loan Seller must deposit in the Distribution Account an amount, if any, by which
the Purchase Price of the Deleted Mortgage Loan exceeds the initial Stated
Principal Balance of the Replacement Mortgage Loan (the "Substitution Shortfall
Amount").
The foregoing repurchase or substitution obligation will constitute the sole
remedy available to the Certificateholders and the Trustee for any failure on
the part of a Mortgage Loan Seller to deliver any of the above-described
documents with respect to any of its Mortgage Loans or for any defect in any
such document; and none of the Depositor, either of the other Mortgage Loan
Sellers or any other person or entity will be obligated to repurchase the
affected Mortgage Loan if the related Mortgage Loan Seller defaults on its
obligation to do so.
Within 45 days following the Delivery Date, the Trustee, at the expense of
the related Mortgage Loan Seller, will cause the assignments with respect to
each Mortgage Loan described in clauses (d) and (e) of the fourth preceding
paragraph to be completed in the name of the Trustee (if delivered in blank) and
submitted for recording in the real property records of the appropriate
jurisdictions.
REPRESENTATIONS AND WARRANTIES; REPURCHASES
In each Mortgage Loan Purchase Agreement, subject to certain exceptions, the
related Mortgage Loan Seller has represented and warranted with respect to each
of its Mortgage Loans, as of the Delivery Date, or as of such other date
specifically provided in the representation and warranty, among other things,
generally to the effect that:
(i) Immediately prior to the transfer thereof to the Depositor, such
Mortgage Loan Seller had good and marketable title to, and was the sole
owner and holder of, such Mortgage Loan, free and clear of any and all
liens, encumbrances and other interests on, in or to such Mortgage Loan
(other than, in certain cases, the right of a subservicer to primary service
such Mortgage Loan).
(ii) Such Mortgage Loan Seller has full right and authority to sell,
assign and transfer such Mortgage Loan.
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<PAGE>
(iii) The information pertaining to such Mortgage Loan set forth in the
Mortgage Loan schedule attached to the related Mortgage Loan Purchase
Agreement was true and correct in all material respects as of the Cut-off
Date for such Mortgage Loan.
(iv) Such Mortgage Loan was not, as of the Cut-off Date for such
Mortgage Loan, 30 days or more delinquent in respect of any Monthly Payment
required thereunder, without giving effect to any applicable grace period.
(v) The lien of the related Mortgage is insured by an ALTA lender's
title insurance policy, or its equivalent as adopted in the applicable
jurisdiction, issued by a nationally recognized title insurance company,
insuring the originator of the related Mortgage Loan, its successors and
assigns, as to the first priority lien of the Mortgage in the original
principal amount of the related Mortgage Loan after all advances of
principal, subject only to Permitted Encumbrances (or, if a title insurance
policy has not yet been issued in respect of any Mortgage Loan, a policy
meeting the foregoing description is evidenced by a commitment for title
insurance "marked-up" at the closing of such loan). "Permitted Encumbrances"
include (A) the lien of current real property taxes and assessments not yet
due and payable, (B) covenants, conditions and restrictions, rights of way,
easements and other matters of public record, and (C) exceptions and
exclusions specifically referred to in the lender's title insurance policy
issued or, as evidenced by a "marked-up" commitment, to be issued in respect
of such Mortgage Loan. The Permitted Encumbrances referred to above do not
materially interfere with the security intended to be provided by the
related Mortgage, the current use or operation of the related Mortgaged
Property, or the current ability of such Mortgaged Property to generate net
operating income sufficient to service the Mortgage Loan.
(vi) Such Mortgage Loan Seller has not waived any material default,
breach, violation or event of acceleration existing under the related
Mortgage or Mortgage Note.
(vii) There is no valid offset, defense or counterclaim to such Mortgage
Loan.
(viii) The related Mortgaged Property is, to the knowledge of such
Mortgage Loan Seller, free and clear of any damage that would materially and
adversely affect its value as security for such Mortgage Loan and such
Mortgage Loan Seller has no actual notice of the commencement of a
proceeding for the condemnation of all or any material portion of the
related Mortgaged Property.
(ix) At origination, such Mortgage Loan complied with all applicable
usury laws.
(x) The proceeds of such Mortgage Loan have been fully disbursed and
there is no requirement for future advances thereunder.
(xi) The Mortgage Note and Mortgage for such Mortgage Loan and all other
documents and instruments evidencing, guaranteeing, insuring or otherwise
securing such Mortgage Loan have been duly and properly executed by the
parties thereto, and each is the legal, valid and binding obligation of the
maker thereof (subject to any non-recourse provisions contained in any of
the foregoing agreements and any applicable state anti-deficiency
legislation), enforceable in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization,
receivership, moratorium or other laws relating to or affecting the rights
of creditors generally and by general principles of equity (regardless of
whether such enforcement is considered in a proceeding in equity or at law).
(xii) Other than in the case of certain Credit Lease Loans as to which
self insurance is permitted under the related Mortgage Loan documents, all
improvements upon the related Mortgaged Property are insured against loss by
hazards of extended coverage in an amount (subject to a customary
deductible) at least equal to the lesser of the outstanding balance of such
Mortgage Loan and 100% of the full replacement cost of the improvements
located on such Mortgaged Property and the related hazard insurance policy
contains appropriate endorsements to avoid the application of co-insurance
provisions and does not permit reduction in insurance proceeds for
depreciation.
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<PAGE>
(xiii) The related Mortgaged Property was subject to one or more
environmental site assessments (or an update of a previously conducted
assessment), which was performed on behalf of such Mortgage Loan Seller, or
as to which the related report was delivered to such Mortgage Loan Seller in
connection with its origination or acquisition of such Mortgage Loan; and
such Mortgage Loan Seller, having made no independent inquiry other than
reviewing the resulting report(s) and/or employing an environmental
consultant to perform the assessment(s) referenced herein, has no knowledge
of any material and adverse environmental condition or circumstance
affecting such Mortgaged Property that was not disclosed in the related
report(s).
(xiv) Such Mortgage Loan is not cross-collateralized with a mortgage loan
other than another Mortgage Loan.
(xv) All escrow deposits relating to such Mortgage Loan that were
required to be deposited with the mortgagee or its agent under the terms of
the related loan documents, have been so deposited.
(xvi) As of the date of origination of such Mortgage Loan and, to the
actual knowledge of such Mortgage Loan Seller, as of the Delivery Date, the
related Mortgaged Property was and is free and clear of any mechanics' and
materialmen's liens or liens in the nature thereof which create a lien prior
to that created by the related Mortgage, except those which are insured
against by the title policy referred to in (v) above.
(xviii) No holder of the Mortgage Loan has, to the Mortgage Loan Seller's
knowledge, advanced funds or induced, solicited or knowingly received any
advance of funds from a party other than the owner of the related Mortgaged
Property, directly or indirectly, for the payment of any amount required by
the Mortgage Loan.
(xix) To such Mortgage Loan Seller's knowledge, based on due diligence
customarily performed in the origination of comparable mortgage loans by
such Mortgage Loan Seller, as of the date of origination of such Mortgage
Loan, the related Mortgagor or operator was in possession of all material
licenses, permits and authorizations required by applicable laws for the
ownership and operation of the related Mortgaged Property as it was then
operated.
(xx) The related Mortgage or Mortgage Note, together with applicable
state law, contains customary and enforceable provisions (subject to the
exceptions set forth in paragraph (xi) above) such as to render the rights
and remedies of the holders thereof adequate for the practical realization
against the related Mortgaged Property of the principal benefits of the
security intended to be provided thereby.
(xxi) In connection with the origination or acquisition of such Mortgage
Loan, such Mortgage Loan Seller has inspected or caused to be inspected the
Mortgaged Property.
(xxii) Such Mortgage Loan contains provisions for the acceleration of the
payment of the unpaid principal balance of such Mortgage Loan if, without
complying with the requirements of such Mortgage Loan, the related Mortgaged
Property is directly or indirectly transferred or sold.
(xxiii) Except for Lehman Mortgage Loans each of which represents less
than 2.0% of the Initial Pool Balance, the related Mortgagor is an entity,
other than an individual, whose organizational documents or the related
Mortgage Loan documents provide substantially to the effect that such
Mortgagor: (A) is formed or organized solely for the purpose of owning and
operating one or more of the Mortgaged Properties securing the Mortgage
Loan, (B) may not engage in any business unrelated to such Mortgaged
Property, (C) does not have any assets other than those related to its
interest in and operation of such Mortgage Property, (D) may not incur
indebtedness other than as permitted by the related Mortgage or other
Mortgage Loan documents, (E) has its own books and records separate and
apart from any other person, and (F) holds itself out as a legal entity,
separate and apart from any other person.
If it is found that there exists a material breach of any of the foregoing
representations and warranties of any of the Mortgage Loan Sellers with respect
to any of its Mortgage Loans, and if such
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Mortgage Loan Seller cannot cure such breach within a period of 90 days
following its receipt of notice of such breach, then such Mortgage Loan Seller
will be obligated pursuant to the related Mortgage Loan Purchase Agreement (the
relevant rights under which will be assigned by the Depositor to the Trustee) to
repurchase the affected Mortgage Loan within such 90 day period at the
applicable Purchase Price or substitute a Replacement Mortgage Loan for the
affected Mortgage Loan and pay any Substitution Shortfall Amount.
The foregoing repurchase or substitution obligation will constitute the sole
remedy available to the Certificateholders and the Trustee for any breach of a
Mortgage Loan Seller's representations and warranties regarding any of its
Mortgage Loans. As to any Mortgage Loan, the related Mortgage Loan Seller will
be the sole Warranting Party; and none of the Depositor, the other Mortgage Loan
Seller or any other person or entity will be obligated to repurchase any
affected Mortgage Loan in connection with a breach of the related Mortgage Loan
Seller's representations and warranties if the related Mortgage Loan Seller
defaults on its obligation to do so. See "The Pooling and Servicing
Agreements--Representations and Warranties; Repurchases" in the Prospectus.
POOL CHARACTERISTICS; CHANGES IN MORTGAGE ASSET POOL
The description in this Prospectus Supplement of the Mortgage Asset Pool and
the Mortgaged Properties is based upon the Mortgage Loans that constitute the
Mortgage Asset Pool as expected to be constituted at the time the Offered
Certificates are issued, as adjusted for the scheduled principal payments due on
or before the Cut-off Date for each such Mortgage Loan. Prior to the issuance of
the Offered Certificates, a Mortgage Loan may be removed from the Mortgage Asset
Pool if the Depositor deems such removal necessary or appropriate or if it is
prepaid. A limited number of other mortgage loans may be included in the
Mortgage Asset Pool prior to the issuance of the Offered Certificates, unless
including such mortgage loans would materially alter the characteristics of the
Mortgage Asset Pool as described herein. The information set forth herein is
representative of the characteristics of the Mortgage Asset Pool as it will be
constituted at the time the Offered Certificates are issued, although the range
of Mortgage Rates and maturities and certain other characteristics of the
Mortgage Loans in the Mortgage Asset Pool may vary.
A Current Report on Form 8-K (the "Form 8-K") will be available to
purchasers of the Offered Certificates on or shortly after the Delivery Date and
will be filed, together with the Pooling and Servicing Agreement, with the
Securities and Exchange Commission within fifteen days after the initial
issuance of the Offered Certificates. In the event Mortgage Loans are removed
from or added to the Mortgage Asset Pool as set forth in the preceding
paragraph, such removal or addition will be noted in the Form 8-K.
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SERVICING OF THE MORTGAGE LOANS
GENERAL
The Servicer will be responsible for the servicing and administration of all
the Mortgage Loans; however, the holder or holders of Certificates evidencing a
majority interest in the Controlling Class (as defined herein) will be entitled
to terminate substantially all the rights and duties of the Servicer in respect
of Specially Serviced Mortgage Loans (as defined herein) and REO Properties and
to appoint a replacement to perform such duties under substantially the same
terms and conditions as applicable to the Servicer. See "--Termination of the
Servicer with Respect to Specially Serviced Mortgage Loans and REO Properties"
below. The Servicer, either directly or through Sub-Servicers, will be required
to service and administer the Mortgage Loans in the best interests of and for
the benefit of the Certificateholders (as determined by the Servicer in its good
faith and reasonable judgment), in accordance with applicable law, the terms of
the Pooling and Servicing Agreement and the terms of the respective Mortgage
Loans and, to the extent consistent with the foregoing, in the same manner as is
normal and usual in its general mortgage servicing and REO property management
activities with respect to mortgage loans and REO properties that are comparable
to those for which it is responsible under the Pooling and Servicing Agreement.
Such requirements are herein referred to as the "Servicing Standard."
A "Specially Serviced Mortgage Loan" is any Mortgage Loan as to which any of
the following events (each, a "Special Servicing Event") has occurred: (i) the
related borrower has failed to make when due any Balloon Payment, which failure
has continued unremedied for 30 days; (ii) the related borrower has failed to
make when due any Monthly Payment (other than a Balloon Payment) or any other
payment required under the related Mortgage Note or the related Mortgage(s),
which failure continues unremedied for 60 days; (iii) the Servicer has
determined in its good faith and reasonable judgment, that a default in the
making of a Monthly Payment or any other payment required under the related
Mortgage Note or the related Mortgage(s) is likely to occur within 30 days and
is likely to remain unremedied for at least 60 days or, in the case of a Balloon
Payment, for at least 30 days; (iv) there shall have occurred a default under
the related loan documents, other than as described in clause (i) or (ii) above,
that materially impairs the value of the related Mortgaged Property as security
for the Mortgage Loan or otherwise materially and adversely affects the
interests of Certificateholders, which default has continued unremedied for the
applicable grace period under the terms of the Mortgage Loan (or, if no grace
period is specified, 60 days); (v) a decree or order of a court or agency or
supervisory authority having jurisdiction in the premises in an involuntary case
under any present or future federal or state bankruptcy, insolvency or similar
law or the appointment of a conservator or receiver or liquidator in any
insolvency, readjustment of debt, marshaling of assets and liabilities or
similar proceedings, or for the winding-up or liquidation of its affairs, shall
have been entered against the related borrower and such decree or order shall
have remained in force undischarged or unstayed for a period of 60 days; (vi)
the related borrower shall have consented to the appointment of a conservator or
receiver or liquidator in any insolvency, readjustment of debt, marshaling of
assets and liabilities or similar proceedings of or relating to such borrower or
of or relating to all or substantially all of its property; (vii) the related
borrower shall have admitted in writing its inability to pay its debts generally
as they become due, filed a petition to take advantage of any applicable
insolvency or reorganization statute, made an assignment for the benefit of its
creditors, or voluntarily suspended payment of its obligations; and (viii) the
Servicer shall have received notice of the commencement of foreclosure or
similar proceedings with respect to the related Mortgaged Property or
Properties.
A Mortgage Loan will cease to be a Specially Serviced Mortgage Loan (and
will become a "Corrected Mortgage Loan") at such time as such of the following
as are applicable occur with respect to the
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circumstances identified above that caused the Mortgage Loan to be characterized
as a Specially Serviced Mortgage Loan (and provided that no other Special
Servicing Event then exists):
(a) with respect to the circumstances described in clauses (i) and (ii) of
the preceding paragraph, the related borrower has made three consecutive full
and timely Monthly Payments under the terms of such Mortgage Loan (as such terms
may be changed or modified in connection with a bankruptcy or similar proceeding
involving the related borrower or by reason of a modification, waiver or
amendment granted or agreed to by the Servicer);
(b) with respect to the circumstances described in clauses (iii), (v), (vi)
and (vii) of the preceding paragraph, such circumstances cease to exist in the
good faith and reasonable judgment of the Servicer;
(c) with respect to the circumstances described in clause (iv) of the
preceding paragraph, such default is cured; and
(d) with respect to the circumstances described in clause (viii) of the
preceding paragraph, such proceedings are terminated.
The Servicer will be required to service and administer the respective
groups of related Cross-Collateralized Mortgage Loans as a single Mortgage Loan
as and when it deems necessary and appropriate, consistent with the Servicing
Standard. If any Cross-Collateralized Mortgage Loan becomes a Specially Serviced
Mortgage Loan, then each other Mortgage Loan that is cross-collateralized with
it shall also become a Specially Serviced Mortgage Loan. Similarly, no
Cross-Collateralized Mortgage Loan shall subsequently become a Corrected
Mortgage Loan, unless and until all Special Servicing Events in respect of each
other Mortgage Loan that is cross-collateralized with it, are remediated or
otherwise addressed as contemplated above.
Set forth below, following the subsection captioned "--The Servicer," is a
description of certain pertinent provisions of the Pooling and Servicing
Agreement relating to the servicing of the Mortgage Loans. Reference is also
made to the Prospectus, in particular to the section captioned "The Pooling and
Servicing Agreements" for important additional information regarding the terms
and conditions of the Pooling and Servicing Agreement as they relate to the
rights and obligations of the Servicer thereunder. The Servicer constitutes a
"Master Servicer" and a "Special Servicer" for purposes of the Prospectus.
However, information set forth in the Prospectus should be read taking account
of all supplemental information contained herein.
THE SERVICER
GMACCM will be the Servicer with respect to the Mortgage Asset Pool. As of
June 30, 1998, the Servicer had a total commercial and multifamily mortgage loan
servicing portfolio of approximately $46 billion. See "Description of the
Mortgage Asset Pool--The Mortgage Loan Sellers--GMACCM" herein and "GMAC
Commercial Mortgage Corporation" in the Prospectus.
TERMINATION OF THE SERVICER WITH RESPECT TO SPECIALLY SERVICED MORTGAGE LOANS
AND REO PROPERTIES
The holder or holders of Certificates entitled to more than 50% of the
voting rights allocated to the Controlling Class (as defined below) may at any
time terminate substantially all of the rights and duties of the Servicer in
respect of Specially Serviced Mortgage Loans and REO Properties and appoint a
replacement (a "Replacement Special Servicer") to perform such duties under
substantially the same terms and conditions as applicable to the Servicer. Such
holder(s) shall designate a replacement to so serve by the delivery to the
Trustee of a written notice stating such designation. The Trustee shall,
promptly after receiving any such notice, so notify the Rating Agencies. The
designated replacement shall become the Replacement Special Servicer as of the
date the Trustee shall have received: (i) written
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confirmation from each Rating Agency stating that if the designated replacement
were to serve as Replacement Special Servicer under the Pooling and Servicing
Agreement, none of the then-current ratings of the outstanding Classes of the
Certificates would be qualified, downgraded or withdrawn as a result thereof;
(ii) a written acceptance of all obligations of a Replacement Special Servicer,
executed by the designated replacement; and (iii) an opinion of counsel to the
effect that the designation of such replacement to serve as Replacement Special
Servicer is in compliance with the Pooling and Servicing Agreement, that the
designated replacement will be bound by the terms of the Pooling and Servicing
Agreement and that the Pooling and Servicing Agreement will be enforceable
against such designated replacement in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization,
receivership, moratorium or other laws relating to or affecting the rights of
creditors generally and by general principles of equity (regardless of whether
such enforcement is considered in a proceeding in equity or at law). The
Servicer shall be deemed to have resigned from its duties in respect of
Specially Serviced Mortgage Loans and REO Properties simultaneously with such
designated replacement's becoming the Replacement Special Servicer under the
Pooling and Servicing Agreement. Any Replacement Special Servicer may be
similarly so replaced by the holder or holders of Certificates entitled to more
than 50% of the voting rights allocated to the Controlling Class.
In general, a Replacement Special Servicer will possess rights and
obligations comparable to those of a Master Servicer described in the Prospectus
under "The Pooling and Servicing Agreements--Sub-Servicers," "--Evidence as to
Compliance" and "--Certain Matters Regarding a Master Servicer and the
Depositor." In addition, a Replacement Special Servicer will be responsible for
performing the servicing and other administrative duties attributable to the
Servicer herein or a Master Servicer under "The Pooling and Servicing
Agreements" (and, in particular, under the subsection thereof captioned
"--Realization Upon Defaulted Mortgage Loans") in the Prospectus, insofar as
such duties relate to Specially Serviced Mortgage Loans and REO Properties.
Notwithstanding any appointment of a Replacement Special Servicer, however, the
Servicer shall continue to collect information and prepare all reports to the
Trustee and to pay the reasonable compensation of the Trustee required under the
Pooling and Servicing Agreement with respect to any Specially Serviced Mortgage
Loans and REO Properties, and further to render incidental services with respect
to any Specially Serviced Mortgage Loans and REO Properties as are specifically
provided for in the Pooling and Servicing Agreement. Unless the same person acts
in both capacities, the Servicer and the Replacement Special Servicer shall not
have any responsibility for the performance of each other's duties under the
Pooling and Servicing Agreement.
The "Controlling Class" will be the most subordinate Class of Principal
Balance Certificates outstanding (the Class A-1 and Class A-2 Certificates being
treated as a single Class for this purpose) that has a Certificate Balance at
least equal to 25% of its initial Certificate Balance (or, if no Class of
Principal Balance Certificates has a Certificate Balance at least equal to 25%
of its initial Certificate Balance, then the "Controlling Class" will be the
Class of Principal Balance Certificates with the largest Certificate Balance
then outstanding, provided that if two or more Classes of Principal Balance
Certificates have the largest Certificate Balance, the most subordinate Class
will be the "Controlling Class"). Initially the Controlling Class will consist
of the Class N Certificates. It is anticipated that the Servicer will acquire
certain Subordinate Certificates, including the Class N Certificates.
SERVICING AND OTHER COMPENSATION AND PAYMENT OF EXPENSES
The principal compensation to be paid to the Servicer in respect of its
servicing activities generally will be the Servicing Fee, the Special Servicing
Fee, the Workout Fee and the Liquidation Fee. The "Servicing Fee" will be
payable monthly on a loan-by-loan basis from amounts received or advanced in
respect of interest on each Mortgage Loan (including Specially Serviced Mortgage
Loans and Mortgage Loans as to which the related Mortgaged Property has become
an REO Property), will accrue at a percentage rate per annum set forth in Annex
A for each Mortgage Loan Seller (the "Servicing Fee
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Rate"), and will be computed on the basis of the same principal amount and for
the same period respecting which any related interest payment due or deemed due
on the related Mortgage Loan is computed. The "Special Servicing Fee" will
accrue solely with respect to each Specially Serviced Mortgage Loan and each
Mortgage Loan as to which the related Mortgaged Property has become an REO
Property, at a rate equal to 0.25% per annum, on the basis of the same principal
amount and for the same period respecting which any related interest payment due
or deemed due on such Mortgage Loan is computed, and will be payable monthly
from general collections on the Mortgage Loans then on deposit in the
Certificate Account. A "Workout Fee" will in general be payable with respect to
each Corrected Mortgage Loan. As to each Corrected Mortgage Loan, the Workout
Fee will be payable out of, and will be calculated by application of a "Workout
Fee Rate" of 1.0% to, each collection of interest and principal (including
scheduled payments, prepayments, Balloon Payments and payments at maturity)
received on such Mortgage Loan for so long as it remains a Corrected Mortgage
Loan. The Workout Fee with respect to any Corrected Mortgage Loan will cease to
be payable if such loan again becomes a Specially Serviced Mortgage Loan or if
the related Mortgaged Property becomes an REO Property; provided that a new
Workout Fee will become payable if and when such Mortgage Loan again becomes a
Corrected Mortgage Loan. If the Servicer is terminated (other than for cause) or
resigns with respect to any or all of its servicing duties, it shall retain the
right to receive any and all Workout Fees payable with respect to Mortgage Loans
that became Corrected Mortgage Loans during the period that it had
responsibility for servicing Specially Serviced Mortgage Loans and that were
still Corrected Mortgage Loans at the time of such termination or resignation
(and the successor Servicer or Replacement Special Servicer shall not be
entitled to any portion of such Workout Fees), in each case until the Workout
Fee for any such loan ceases to be payable in accordance with the preceding
sentence. A "Liquidation Fee" will be payable with respect to each Specially
Serviced Mortgage Loan as to which the Servicer obtains a full or discounted
payoff from the related borrower and, except as otherwise described below, with
respect to any Specially Serviced Mortgage Loan or REO Property as to which the
Servicer receives any Liquidation Proceeds. As to each such Specially Serviced
Mortgage Loan and REO Property, the Liquidation Fee will be payable from, and
will be calculated by application of a "Liquidation Fee Rate" of 1.0% to, the
related payment or proceeds. Notwithstanding anything to the contrary described
above, no Liquidation Fee will be payable based on, or out of, Liquidation
Proceeds received in connection with the purchase of any Specially Serviced
Mortgage Loan or REO Property by the Servicer, a Replacement Special Servicer or
any holder of Certificates evidencing a majority interest in the Controlling
Class or the purchase of all of the Mortgage Loans and REO Properties by the
Servicer or the Depositor in connection with the termination of the Trust Fund.
If, however, Liquidation Proceeds are received with respect to any Corrected
Mortgage Loan and the Servicer is properly entitled to a Workout Fee, such
Workout Fee will be payable based on and out of the portion of such Liquidation
Proceeds that constitute principal and/or interest.
As additional servicing compensation, the Servicer will be entitled to
retain all assumption and modification fees, late payment charges, charges for
beneficiary statements or demands, amounts collected for checks returned for
insufficient funds, and any similar or ancillary fees, in each case to the
extent actually paid by a borrower with respect to a Mortgage Loan. The Servicer
will also be entitled to: (a) Prepayment Interest Excesses and Balloon Payment
Interest Excesses (each described below) collected on the Mortgage Loans; and
(b) any default interest actually collected on the Mortgage Loans, but only to
the extent that such default interest is not allocable to cover interest on any
Advances (as defined below) made in respect of the related Mortgage Loan. In
addition, the Servicer will be authorized to invest or direct the investment of
funds held in any and all accounts maintained by it that constitute part of the
Certificate Account, the Interest Reserve Account and the REO Account, if
established (and any Replacement Special Servicer will be authorized to invest
or direct the investment of funds held in the REO Account, if established), and
the Servicer and Replacement Special Servicer, respectively, will be entitled to
retain any interest or other income earned on such funds, but will be required
to cover any losses from its own funds without any right to reimbursement. The
Servicer and Replacement Special
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Servicer will have such rights and obligations irrespective of whether the
Servicer or Replacement Special Servicer, as applicable, actually directs the
investment of such funds.
If a Replacement Special Servicer is appointed, then as compensation for
performing its duties in respect of the Specially Serviced Mortgage Loans and
REO Properties, such Replacement Special Servicer will be entitled to receive
all Special Servicing Fees, Liquidation Fees and, except as otherwise described
above, Workout Fees otherwise payable to the Servicer for performing such
duties. A Replacement Special Servicer will also become (and the Servicer will
also cease to be) entitled to any default interest actually collected on the
Mortgage Loans, but only to the extent that (i) such default interest is not
allocable to cover interest on any Advances made in respect of the related
Mortgage Loan and (ii) such default interest is allocable to the period that the
related Mortgage Loan constituted a Specially Serviced Mortgage Loan.
If a borrower voluntarily prepays a Mortgage Loan, in whole or in part,
after the Due Date in any Collection Period, the amount of interest (net of
related Servicing Fees and, if applicable, Excess Interest) accrued on such
prepayment from such Due Date to, but not including, the date of prepayment (or
any later date through which interest accrues) will, to the extent actually
collected, constitute a "Prepayment Interest Excess." Conversely, if a borrower
prepays a Mortgage Loan, in whole or in part, prior to the Due Date in any
Collection Period and does not pay interest on such prepayment through such Due
Date, then the shortfall in a full month's interest (net of related Servicing
Fees and, if applicable, Excess Interest) on such prepayment will constitute a
"Prepayment Interest Shortfall." Similarly, if the Due Date for any Balloon
Payment occurs after the normal Due Date in any Collection Period, the amount of
interest (net of related Servicing Fees and, if applicable, Excess Interest)
accrued on the related Balloon Loan from such normal Due Date to the maturity
date will, to the extent actually collected in connection with the payment of
such Balloon Payment on or before the succeeding Determination Date, constitute
a "Balloon Payment Interest Excess." Conversely, if the Due Date for any Balloon
Payment occurs before the Due Date for Monthly Payments in any Collection
Period, the amount of interest (net of related Servicing Fees and, if
applicable, Excess Interest) that would have accrued on the related Balloon Loan
from the stated maturity date through such Due Date will, to the extent not paid
by the borrower, constitute a "Balloon Payment Interest Shortfall."
Notwithstanding the foregoing, when the normal Due Date for any Mortgage Loan
occurs after the Determination Date in each month, voluntary principal
prepayments and timely Balloon Payments are expected to result only in
Prepayment Interest Shortfalls and Balloon Payment Interest Shortfalls,
respectively. Prepayment Interest Excesses and Balloon Payment Interest Excesses
collected on the Mortgage Loans will be retained by the Servicer as additional
servicing compensation. The Servicer will cover, out of its own funds, any
Balloon Payment Interest Shortfalls and, to the extent of that portion of its
aggregate Servicing Fee for the same Collection Period calculated for each
Mortgage Loan at a rate equal to the Master Servicing Fee Rate (as defined in
Annex A herein) for such Mortgage Loan, Prepayment Interest Shortfalls incurred
with respect to the Mortgage Loans during any Collection Period.
The Servicer and any Replacement Special Servicer will, in general, each be
required to pay its overhead and any general and administrative expenses
incurred by it in connection with its servicing activities under the Pooling and
Servicing Agreement, including the fees of any Sub-Servicers retained by it, and
will not be entitled to reimbursement therefor except as expressly provided in
the Pooling and Servicing Agreement. In general, customary, reasonable and
necessary "out of pocket" costs and expenses incurred by the Servicer or a
Replacement Special Servicer in connection with the servicing of a Mortgage Loan
after a default, delinquency or other unanticipated event or as to which a
default is imminent, or in connection with the administration of any REO
Property, will constitute "Servicing Advances" (Servicing Advances and P&I
Advances, collectively, "Advances") and, in all cases, will be reimbursable from
future payments and other collections, including in the form of Liquidation
Proceeds, Insurance Proceeds and Condemnation Proceeds, in any event on or in
respect of the related Mortgage Loan or REO Property ("Related Proceeds").
Notwithstanding the foregoing, the Servicer and any
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Replacement Special Servicer will each be permitted to pay, or to direct the
payment of, certain servicing expenses directly out of the Certificate Account
or the REO Account, as applicable, and at times without regard to the
relationship between the expense and the funds from which it is being paid
(including in connection with the remediation of any adverse environmental
circumstance or condition at a Mortgaged Property or an REO Property, although
in such specific circumstances the Servicer may advance the costs thereof).
Furthermore, if any Replacement Special Servicer is required under the Pooling
and Servicing Agreement to make any Servicing Advance but does not desire to do
so, such Replacement Special Servicer may, in its sole discretion, request that
the Servicer make such Advance, such request to be made in writing and in a
timely manner that does not adversely affect the interests of any
Certificateholder. The Servicer will have an obligation to make any such
Servicing Advance (other than a Non-recoverable Advance or an advance that would
be in violation of the Servicing Standard) requested by a Replacement Special
Servicer within ten (10) days of the Servicer's receipt of such request. A
Replacement Special Servicer will be relieved of any obligations with respect to
an Advance that it requests the Servicer to make (regardless of whether or not
the Servicer makes that Advance).
If the Servicer (or a Replacement Special Servicer) is required under the
Pooling and Servicing Agreement to make a Servicing Advance, but does not do so
within 15 days after such Servicing Advance is required to be made, then the
Trustee will, if it has actual knowledge of such failure, be required to make
such Servicing Advance. If the Trustee fails to make a required Servicing
Advance, the Fiscal Agent will be required to make such Servicing Advance.
The Servicer, any Replacement Special Servicer, the Trustee and the Fiscal
Agent will be obligated to make Servicing Advances only to the extent that such
Servicing Advances are, in the reasonable and good faith judgment of such party,
ultimately recoverable from Related Proceeds.
As and to the extent described herein, the Servicer, any Replacement Special
Servicer, the Trustee and the Fiscal Agent are each entitled to receive interest
at the Reimbursement Rate (as defined herein) on Servicing Advances made
thereby. The Servicing Fee includes the compensation of the Trustee which will
be withdrawn by the Trustee from the Certificate Account. See "The Pooling and
Servicing Agreements--Certificate Account" and "--Servicing Compensation and
Payment of Expenses" in the Prospectus and "Description of the Certificates--P&I
Advances" herein.
MODIFICATIONS, WAIVERS, AMENDMENTS AND CONSENTS
The Servicer may agree to any modification, waiver or amendment of any term
of, forgive interest on and principal of, capitalize interest on, permit the
release, addition or substitution of collateral securing, and/or permit the
release of the borrower on or any guarantor of any Mortgage Loan without the
consent of the Trustee or any Certificateholder, subject, however, to each of
the following limitations, conditions and restrictions:
(i) with limited exception, the Servicer may not agree to any modification,
waiver or amendment of any term of, or take any of the other above referenced
actions with respect to, any Mortgage Loan that would affect the amount or
timing of any related payment of principal, interest or other amount payable
thereunder or affect the obligation of the related borrower to pay a Prepayment
Premium or permit a principal prepayment during the applicable Lockout Period
or, in the Servicer's good faith and reasonable judgment, would materially
impair the security for such Mortgage Loan or reduce the likelihood of timely
payment of amounts due thereon, unless, in the Servicer's judgment, a material
default on such Mortgage Loan has occurred or a default in respect of payment on
such Mortgage Loan is reasonably foreseeable, and such modification, waiver,
amendment or other action is reasonably likely to produce a greater recovery to
Certificateholders on a present value basis than would liquidation;
(ii) the Servicer may not extend the maturity of any Mortgage Loan beyond
the date that is two years prior to the Rated Final Distribution Date;
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(iii) the Servicer will not make or permit any modification, waiver or
amendment of any term of, or take any of the other above referenced actions with
respect to, any Mortgage Loan that would (A) cause any of REMIC I, REMIC II or
REMIC III to fail to qualify as a REMIC under the Code or, except as otherwise
described under "--REO Properties" below, result in the imposition of any tax on
"prohibited transactions" or "contributions" after the startup date of any such
REMIC under the REMIC Provisions or (B) cause any Mortgage Loan to cease to be a
"qualified mortgage" within the meaning of Section 860G(a)(3) of the Code
(provided that the Servicer shall not be liable for judgments as regards
decisions made under this subsection which were made in good faith and, unless
it would constitute bad faith or negligence to do so, the Servicer may rely on
opinions of counsel in making such decisions);
(iv) the Servicer will not permit any borrower to add or substitute any
collateral for an outstanding Mortgage Loan, which collateral constitutes real
property, unless the Servicer shall have first determined in its good faith and
reasonable judgment, based upon a Phase I environmental assessment (and such
additional environmental testing as the Servicer deems necessary and
appropriate), that such additional or substitute collateral is in compliance
with applicable environmental laws and regulations and that there are no
circumstances or conditions present with respect to such new collateral relating
to the use, management or disposal of any hazardous materials for which
investigation, testing, monitoring, containment, clean-up or remediation would
be required under any then applicable environmental laws and/ or regulations;
and
(v) with limited exceptions, the Servicer may not release any collateral
securing an outstanding Mortgage Loan;
provided that (x) the limitations, conditions and restrictions set forth in
clauses (i) through (v) above will not apply to any modification of any term of
any Mortgage Loan that is required under the terms of such Mortgage Loan in
effect on the Delivery Date or that is solely within the control of the related
borrower, and (y) notwithstanding clauses (i) through (v) above, the Servicer
will not be required to oppose the confirmation of a plan in any bankruptcy or
similar proceeding involving a borrower if in its reasonable and good faith
judgment such opposition would not ultimately prevent the confirmation of such
plan or one substantially similar.
ENFORCEMENT OF ARD LOANS
With respect to all ARD Loans, the Servicer and any Replacement Special
Servicer may not take any enforcement action with respect to the payment of
Excess Interest or principal in excess of the principal component of the
constant Monthly Payment, other than request for collection, until the maturity
date of the ARD Loan. The foregoing will not limit the Servicer's or Replacement
Special Servicer's obligation to direct the related borrower to establish a
Lock-Box Account pursuant to the provisions of the Pooling and Servicing
Agreement. If a borrower elects not to repay the principal due and outstanding
on an ARD Loan on its Anticipated Repayment Date, the Servicer will generally
notify any such borrower that the Revised Rate for such Mortgage Loan will not
exceed the related initial Mortgage Rate plus 2.00%.
SALE OF DEFAULTED MORTGAGE LOANS
The Pooling and Servicing Agreement grants to the Servicer, any Replacement
Special Servicer and the holder or holders of Certificates evidencing a majority
interest in the Controlling Class a right to purchase from the Trust Fund
certain defaulted Mortgage Loans. If the Servicer has determined, in its good
faith and reasonable judgment, that any defaulted Mortgage Loan will become the
subject of a foreclosure, the Servicer will be required to promptly so notify in
writing the Trustee, and the Trustee will be required, within 10 days after
receipt of such notice, to notify the holders of the Controlling Class. Any
holder or holders of Certificates evidencing a majority interest in the
Controlling Class may, at its or their option, purchase from the Trust Fund, at
a price equal to the applicable Purchase Price, any such defaulted Mortgage
Loan. If such Certificateholders have not purchased such defaulted Mortgage Loan
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within 15 days of their having received notice in respect thereof, either the
Servicer or any Replacement Special Servicer may, at its option, purchase such
defaulted Mortgage Loan from the Trust Fund, at a price equal to the applicable
Purchase Price.
The Servicer may offer to sell any such defaulted Mortgage Loan not
otherwise purchased as described in the prior paragraph, if and when the
Servicer determines, consistent with the Servicing Standard, that such a sale
would be in the best economic interests of the Trust Fund. Such offer is to be
made in a commercially reasonable manner for a period of not less than 10 days
or more than 90 days. Unless the Servicer determines that acceptance of any
offer would not be in the best economic interests of the Trust Fund, the
Servicer will accept the highest cash offer received from any person that
constitutes a fair price (which may be less than the Purchase Price) for such
Mortgage Loan; provided that none of the Servicer, any Replacement Special
Servicer, the Depositor, the holder of any Certificate or an affiliate of any
such party may purchase such Mortgage Loan for less than the Purchase Price
unless it is the highest bid received and at least two other offers are received
from independent third parties. See also "The Pooling and Servicing
Agreements--Realization Upon Defaulted Mortgage Loans" in the Prospectus.
REO PROPERTIES
In general, the Servicer will be obligated to (or may contract with a third
party to) operate and manage any Mortgaged Property acquired as REO Property in
a manner that would, in its good faith and reasonable judgment and to the extent
commercially feasible, maximize the Trust Fund's net after-tax proceeds from
such property. After the Servicer reviews the operation of such property and
consults with the Trustee to determine the Trust Fund's federal income tax
reporting position with respect to income it is anticipated that the Trust Fund
would derive from such property, the Servicer could determine that it would not
be commercially feasible to manage and operate such property in a manner that
would avoid the imposition of a tax on "net income from foreclosure property"
within the meaning of the REMIC Provisions or a tax on "prohibited transactions"
under Section 860F of the Code (either such tax referred to herein as an "REO
Tax"). To the extent that income the Trust Fund receives from an REO Property is
subject to a tax on (i) "net income from foreclosure property," such income
would be subject to federal tax at the highest marginal corporate tax rate and
(ii) "prohibited transactions," such income would be subject to federal tax at a
100% rate. The determination as to whether income from an REO Property would be
subject to an REO Tax will depend on the specific facts and circumstances
relating to the management and operation of each REO Property. Generally, income
from an REO Property that is directly operated by the Servicer would be
apportioned and classified as "service" or "non-service" income. The "service"
portion of such income could be subject to federal tax either at the highest
marginal corporate tax rate or at the 100% rate on "prohibited transactions,"
and the "non-service" portion of such income could be subject to federal tax at
the highest marginal corporate tax rate or, although it appears unlikely, at the
100% rate applicable to "prohibited transactions." Any REO Tax imposed on the
Trust Fund's income from an REO Property would reduce the amount available for
distribution to Certificateholders. Certificateholders are advised to consult
their tax advisors regarding the possible imposition of REO Taxes in connection
with the operation of commercial REO Properties by REMICs. The Servicer will be
required to sell any REO Property acquired on behalf of the Trust Fund within
the time period and in the manner described under "The Pooling and Servicing
Agreements-- Realization Upon Defaulted Mortgage Loans" in the Prospectus.
The Servicer, or, if appointed, the Replacement Special Servicer, shall
establish and maintain one or more eligible accounts (the "REO Account"), to be
held on behalf of the Trustee in trust for the benefit of the
Certificateholders, for the retention of revenues, Liquidation Proceeds (net of
related liquidation expenses) and Insurance Proceeds derived from each REO
Property. The Servicer or Replacement Special Servicer, as applicable, shall use
the funds in the REO Account to pay for the proper operation, management,
maintenance, disposition and liquidation of any REO Property, but only to the
extent of
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amounts on deposit in the REO Account relate to such REO Property. To the extent
that amounts in the REO Account in respect of any REO Property are insufficient
to make such payments, such Servicer or Replacement Special Servicer shall make
a Servicing Advance, unless it determines such Servicing Advance would be
nonrecoverable. Within one Business Day following the end of each Collection
Period, the Servicer or Replacement Special Servicer shall deposit all amounts
collected or received in respect of each REO Property during such Collection
Period, net of any amounts withdrawn to make any permitted disbursements, to the
Certificate Account, provided that the Servicer and the Replacement Special
Servicer may retain in the REO Account permitted reserves.
INSPECTIONS; COLLECTION OF OPERATING INFORMATION
The Servicer is required to (or may contract with a third party to) perform
physical inspections of each Mortgaged Property at least once every two years
(or, if the related Mortgage Loan has a then-current balance greater than
$2,000,000, at least once every year). In addition, the Servicer, subject to
statutory limitations or limitations set forth in the related loan documents, is
required to perform a physical inspection of each Mortgaged Property as soon as
practicable after the related Mortgage Loan becomes a Specially Serviced
Mortgage Loan. The Servicer will be required to prepare or cause to be prepared
a written report of each such inspection performed thereby describing the
condition of the Mortgaged Property.
With respect to each Mortgage Loan that requires the borrower to deliver
operating statements with respect to the related Mortgaged Property, the
Servicer is also required to make reasonable efforts to collect and review such
statements. However, there can be no assurance that any operating statements
required to be delivered will in fact be delivered, nor is the Servicer likely
to have any practical means of compelling such delivery in the case of an
otherwise performing Mortgage Loan.
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DESCRIPTION OF THE CERTIFICATES
GENERAL
The Certificates will be issued pursuant to the Pooling and Servicing
Agreement and will represent in the aggregate the entire beneficial ownership
interest in a Trust Fund consisting of: (i) the Mortgage Loans and all payments
under and proceeds of the Mortgage Loans received after the Cut-off Date for
such Mortgage Loan (exclusive of payments of principal and interest due on or
before the Cut-off Date for such Mortgage Loan); (ii) any REO Property acquired
on behalf of the Certificateholders through foreclosure, deed in lieu of
foreclosure or otherwise; (iii) such funds or assets as from time to time are
deposited in the Certificate Account; (iv) the rights of the mortgagee under all
insurance policies with respect to the Mortgage Loans; and (v) certain rights of
the Depositor under each of the Mortgage Loan Purchase Agreements relating to
Mortgage Loan document delivery requirements and the representations and
warranties of the related Mortgage Loan Seller regarding its Mortgage Loans.
The Certificates will consist of 18 Classes to be designated as: (i) the
Class X Certificates; (ii) the Class A-1 Certificates and the Class A-2
Certificates (together, the "Class A Certificates" and collectively with the
Class X Certificates, the "Senior Certificates"); (iii) the Class B
Certificates, Class C Certificates, the Class D Certificates, the Class E
Certificates, the Class F Certificates, the Class G Certificates, the Class H
Certificates, the Class J Certificates, the Class K Certificates, the Class L
Certificates, the Class M Certificates and the Class N Certificates
(collectively, the "Subordinate Certificates;" and collectively with the Senior
Certificates, the "REMIC Regular Certificates"); and (iv) the Class R-I
Certificates, the Class R-II Certificates and the Class R-III Certificates
(collectively, the "REMIC Residual Certificates").
Only the Offered Certificates are offered hereby. The Class F, Class G,
Class H, Class J, Class K, Class L, Class M, Class N and REMIC Residual
Certificates have not been registered under the Securities Act of 1933 and are
not offered hereby.
The Offered Certificates will be issued in book-entry format in
denominations of: (i) in the case of the Class X Certificates, $1,000,000
notional principal amount and in any whole dollar denomination in excess
thereof; and (ii) in the case of the other Classes of Offered Certificates,
$25,000 actual principal amount and in any whole dollar denomination in excess
thereof.
Each Class of Offered Certificates will initially be represented by one or
more global Certificates registered in the name of the nominee of DTC. The
Depositor has been informed by DTC that DTC's nominee initially will be Cede &
Co. No Certificate Owner will be entitled to receive a Definitive Certificate
representing its interest in a Class of Offered Certificates, except as set
forth below under "--Book-Entry Registration of the Offered
Certificates--Definitive Certificates." Unless and until Definitive Certificates
are issued in respect of any Class of Offered Certificates, all references to
actions by holders of the Offered Certificates will refer to actions taken by
DTC upon instructions received from the related Certificate Owners through its
Participants, and all references herein to payments, notices, reports and
statements to holders of the Offered Certificates will refer to payments,
notices, reports and statements to DTC or Cede & Co., as the registered holder
of the Offered Certificates, for distribution to the related Certificate Owners
through its Participants in accordance with DTC procedures. Until Definitive
Certificates are issued in respect of any Class of Offered Certificates,
interests in such Certificates will be transferred on the book-entry records of
DTC and its Participants. The Certificate Owners may elect to hold their
Certificates through DTC, in the United States, or CEDEL or Euroclear, in
Europe, through participants in such systems, or indirectly through
organizations which are participants in such systems. See "Description of the
Certificates--Book-Entry Registration and Definitive Certificates" in the
Prospectus.
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BOOK-ENTRY REGISTRATION OF THE OFFERED CERTIFICATES
GENERAL. Certificate Owners that are not Direct or Indirect Participants
but desire to purchase, sell or otherwise transfer ownership of, or other
interests in, the Offered Certificates may do so only through Direct and
Indirect Participants. In addition, Certificate Owners will receive all payments
on their Offered Certificates from the Trustee through DTC and its Direct and
Indirect Participants. Accordingly, Certificate Owners may experience delays in
their receipt of payments. Unless and until Definitive Certificates are issued
in respect of any Class thereof, the only registered Certificateholder of the
Offered Certificates will be Cede & Co., as nominee of DTC. Certificate Owners
will not be recognized by the Trustee or the Servicer as Certificateholders;
and, except under the limited circumstances described herein, Certificate Owners
will be permitted to receive information furnished to Certificateholders and to
exercise the rights of Certificateholders only indirectly through DTC and its
Direct and Indirect Participants.
Under the rules, regulations and procedures regarding DTC and its operations
(the "Rules"), DTC is required to make book-entry transfers of the Offered
Certificates among Participants and to receive and transmit payments on the
Offered Certificates. Direct and Indirect Participants with which Certificate
Owners have accounts with respect to the Offered Certificates similarly are
required to make book-entry transfers and receive and transmit such payments on
behalf of their respective Certificate Owners. Accordingly, although Certificate
Owners will not possess physical certificates evidencing their interests in the
Offered Certificates, the Rules provide a mechanism by which Certificate Owners,
through their Direct and Indirect Participants, will receive payments and will
be able to transfer their interests in the Offered Certificates.
None of the Depositor, the Servicer, the Trustee, the Fiscal Agent or the
Mortgage Loan Sellers will have any liability for any actions taken by DTC or
its nominee, including, without limitation, actions for any aspect of the
records relating to or payments made on account of beneficial ownership
interests in the Offered Certificates held by Cede & Co., as nominee for DTC, or
for maintaining, supervising or reviewing any records relating to such
beneficial ownership interest.
EUROCLEAR AND CEDEL. The Offered Certificates will be initially issued to
investors through the book-entry facilities of DTC, or CEDEL or Euroclear if
such investors are participants of such systems, or indirectly through
organizations which are participants in such systems. As to any such class of
Offered Certificates, the record holder of such Certificates will be DTC's
nominee. CEDEL and Euroclear will hold omnibus positions on behalf of their
participants through customers' securities accounts in CEDEL's and Euroclear's
names on the books of their respective depositories (the "Depositories"), which
in turn will hold such positions in customers' securities accounts in
Depositories' names on the books of DTC.
Because of time zone differences, the securities account of a CEDEL or
Euroclear Participant (each as defined below) as a result of a transaction with
a Participant (other than a depositary holding on behalf of CEDEL or Euroclear)
will be credited during the securities settlement processing day (which must be
a business day for CEDEL or Euroclear, as the case may be) immediately following
the DTC settlement date. Such credits or any transactions in such securities
settled during such processing will be reported to the relevant Euroclear
Participant or CEDEL Participant on such business day. Cash received in CEDEL or
Euroclear as a result of sales of securities by or through a CEDEL Participant
or Euroclear Participant to a DTC Participant (other than the depository for
CEDEL or Euroclear) will be received with value on the DTC settlement date, but
will be available in the relevant CEDEL or Euroclear cash account only as of the
business day following settlement in DTC.
Transfers between Participants will occur in accordance with DTC rules.
Transfers between CEDEL Participants or Euroclear Participants will occur in
accordance with their respective rules and operating procedures.
Cross-market transfers between persons holding directly or indirectly
through DTC, on the one hand, and directly or indirectly through CEDEL
Participants or Euroclear Participants, on the other, will
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be effected in DTC in accordance with DTC rules on behalf of the relevant
European international clearing system by the relevant Depositories; however,
such cross-market transactions will require delivery of instructions to the
relevant European international clearing system by the counterparty in such
system in accordance with its rules and procedures and within its established
deadlines (European time). The relevant European international clearing system
will, if the transaction meets its settlement requirements, deliver instructions
to its Depository to take action to effect final settlement on its behalf by
delivering or receiving securities in DTC, and making or receiving payment in
accordance with normal procedures for same day funds settlement applicable to
DTC. CEDEL Participants or Euroclear Participants may not deliver instructions
directly to the Depositories.
CEDEL, as a professional depository, holds securities for its participating
organizations ("CEDEL Participants") and facilitates the clearance and
settlement of securities transactions between CEDEL Participants through
electronic book-entry changes in accounts of CEDEL Participants, thereby
eliminating the need for physical movement of certificates. As a professional
depository, CEDEL is subject to regulation by the Luxembourg Monetary Institute.
Euroclear was created to hold securities for participants of Euroclear
("Euroclear Participants") and to clear and settle transactions between
Euroclear Participants through simultaneous electronic book-entry delivery
against payment, thereby eliminating the need for physical movement of
certificates and any risk from lack of simultaneous transfers of securities and
cash. Euroclear is operated by the Brussels, Belgium office of Morgan Guaranty
Trust Company of New York (the "Euroclear Operator"), under contract with
Euroclear Clearance Systems S.C., a Belgian co-operative corporation (the
"Clearance Cooperative"). All operations are conducted by the Euroclear
Operator, and all Euroclear securities clearance accounts and Euroclear cash
accounts are accounts with the Euroclear Operator, not the Clearance
Cooperative. The Clearance Cooperative establishes policies for Euroclear on
behalf of Euroclear's Participants. The Euroclear Operator is the Belgian branch
of a New York banking corporation which is a member bank of the Federal Reserve
System. As such, it is regulated and examined by the Board of Governors of the
Federal Reserve System and the New York State Banking Department, as well as the
Belgian Banking Commission. Securities clearance accounts and cash accounts with
the Euroclear Operator are governed by the Terms and Conditions Governing Use of
Euroclear and the related Operating Procedures of the Euroclear System and
applicable Belgian law (collectively, the "Terms and Conditions"). The Terms and
Conditions govern transfers of securities and cash within Euroclear, withdrawals
of securities and cash from Euroclear, and receipts of payments with respect to
securities in Euroclear. All securities in Euroclear are held on a fungible
basis without attribution of specific certificates to specific securities
clearance accounts.
Distributions in respect of the Offered Certificates will be forwarded by
the Trustee to DTC, and DTC will be responsible for forwarding such payments to
Participants, each of which will be responsible for disbursing such payments to
the Certificate Owners it represents or, if applicable, to Indirect
Participants. Accordingly, Certificate Owners may experience delays in the
receipt of payments in respect of their Certificates. Under DTC's procedures,
DTC will take actions permitted to be taken by holders of any Class of Offered
Certificates under the Pooling and Servicing Agreement only at the direction of
one or more Participants to whose account such Offered Certificates are credited
and whose aggregate holdings represent no less than any minimum amount of
Percentage Interests or voting rights required therefor. DTC may take
conflicting actions with respect to any action of Certificateholders of any
Class to the extent that Participants authorize such actions. None of the
Depositor, the Trustee, the Fiscal Agent or any of their respective affiliates
will have any liability for any aspect of the records relating to or payments
made on account of beneficial ownership interests in the Offered Certificates or
for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.
Certificate Owners will not be recognized by the Trustee as
Certificateholders, as such term is used in the Pooling and Servicing Agreement;
provided, however, that Certificate Owners will be permitted to request and
receive information furnished to Certificateholders by the Trustee subject to
receipt by the
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Trustee of a certification in form and substance acceptable to the Trustee
stating that the person requesting such information is a Certificate Owner.
Otherwise, the Certificate Owners will be permitted to receive information
furnished to Certificateholders and to exercise the rights of Certificateholders
only indirectly through DTC, its Participants and Indirect Participants.
Although DTC, CEDEL and Euroclear have agreed to the foregoing procedures in
order to facilitate transfers of the Offered Certificates among Participants of
DTC, CEDEL and Euroclear, they are under no obligation to perform or continue to
perform such procedures and such procedures may be discontinued at any time. See
Annex D hereto.
DEFINITIVE CERTIFICATES. Definitive Certificates will be issued to
Certificate Owners or their nominees, respectively, rather than to DTC or its
nominee, only under the limited conditions set forth in the Prospectus under
"Description of the Certificates--Book-Entry Registration and Definitive
Certificates."
Upon the occurrence of an event described in the Prospectus in the last
paragraph under "Description of the Certificates--Book-Entry Registration and
Definitive Certificates," the Trustee is required to notify, through DTC, Direct
Participants who have ownership of Offered Certificates as indicated on the
records of DTC, of the availability of Definitive Certificates with respect
thereto. Upon surrender by DTC of the physical certificates registered in the
name of its nominee and representing the Offered Certificates and upon receipt
of instructions from DTC for re-registration, the Trustee will reissue the
respective Classes of Offered Certificates as Definitive Certificates issued in
the respective principal or notional amounts owned by individual Certificate
Owners of each such Class, and thereafter the Trustee and the Servicer will
recognize the holders of such Definitive Certificates as Certificateholders.
For additional information regarding DTC and Certificates maintained on the
book-entry records thereof, see "Description of the Certificates--Book-Entry
Registration and Definitive Certificates" in the Prospectus.
CERTIFICATE BALANCES AND NOTIONAL AMOUNTS
Upon initial issuance, the respective Classes of the Principal Balance
Certificates will have the following Certificate Balances (in each case, subject
to a variance of plus or minus 5%):
<TABLE>
<CAPTION>
INITIAL CERTIFICATE PERCENT OF INITIAL POOL PERCENT OF CREDIT
CLASS BALANCE BALANCE SUPPORT
- -------------------------- --------------------- ---------------------------- ----------------------
<S> <C> <C> <C>
Class A-1.................
Class A-2.................
Class B...................
Class C...................
Class D...................
Class E...................
Class F...................
Class G...................
Class H...................
Class J...................
Class K...................
Class L...................
Class M...................
Class N...................
</TABLE>
On each Distribution Date, the Certificate Balance of each Class of
Principal Balance Certificates will be reduced by any distributions of principal
actually made on such Class of Certificates on such Distribution Date, and will
be further reduced by any Realized Losses and Additional Trust Fund
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Expenses deemed allocated to such Class of Certificates on such Distribution
Date. See "--Distributions" and "--Subordination; Allocation of Realized Losses
and Certain Expenses" below.
The Class X Certificates will not have a Certificate Balance. The Class X
Certificates will represent the right to receive distributions of interest
accrued as described herein on a Notional Amount equal to the aggregate
Certificate Balance of the Principal Balance Certificates outstanding from time
to time. The Class X Certificates will have an initial Notional Amount of
$ (subject to a variance of plus or minus 5%). The Class X Certificates
consist of components each corresponding to a different Class of Principal
Balance Certificates (the "Class X Components"). No Class of REMIC Residual
Certificates will have a Certificate Balance.
The "Stated Principal Balance" of each Mortgage Loan will generally equal
the Cut-off Date Balance thereof (or in the case of a Replacement Mortgage Loan,
the outstanding principal balance as of the related date of substitution),
reduced (to not less than zero) on each Distribution Date by (i) any payments or
other collections (or advances in lieu thereof) of principal of such Mortgage
Loan that have been or, if they had not been applied to cover Additional Trust
Fund Expenses, would have been distributed on the Certificates on such date, and
(ii) the principal portion of any Realized Loss incurred in respect of or
allocable to such Mortgage Loan during the related Collection Period.
PASS-THROUGH RATES
The rate per annum at which any Class of Certificates accrues interest from
time to time is herein referred to as its "Pass-Through Rate."
The Pass-Through Rates applicable to the respective Classes of Principal
Balance Certificates will, in the case of each such Class, be fixed at the per
annum rates specified for such Class on page S-7 hereof. The Pass-Through Rate
applicable to the Class X Certificates for the initial Distribution Date will
equal approximately % per annum. The Pass-Through Rate applicable to the
Class X Certificates for any Distribution Date will be variable and will be
equal to the weighted average (by Certificate Balance of the corresponding Class
of Principal Balance Certificates) of the Pass-Through Rates then applicable to
each Class X Component. The Pass-Through Rate in respect of Class X Component
for any Distribution Date will equal the excess, if any, of the Weighted Average
Net Mortgage Rate for such Distribution Date over the Pass-Through Rate for such
Distribution Date applicable to the related Class of Principal Balance
Certificates. No Class of REMIC Residual Certificates will have a specified
Pass-Through Rate.
The "Weighted Average Net Mortgage Rate" for each Distribution Date is the
weighted average of the Net Mortgage Rates for the Mortgage Loans as of the
commencement of the related Collection Period, weighted on the basis of their
respective Stated Principal Balances outstanding immediately prior to such
Distribution Date.
The "Net Mortgage Rate" with respect to any Mortgage Loan is, in general, a
per annum rate equal to the related Mortgage Rate in effect from time to time,
minus the Servicing Fee Rate. However, for purposes of calculating Pass-Through
Rates, the Net Mortgage Rate for any Mortgage Loan shall be determined without
regard to any modification, waiver or amendment of the terms of such Mortgage
Loan, whether agreed to by the Servicer or resulting from a bankruptcy,
insolvency or similar proceeding involving the related borrower or the
application of the Revised Rate to any ARD Loan. In addition, if any Mortgage
Loan does not accrue interest on the basis of a 360-day year consisting of
twelve 30-day months (which is the basis on which interest accrues in respect of
the REMIC Regular Certificates), then, for purposes of calculating Pass-Through
Rates, the Net Mortgage Rate of such Mortgage Loan for any one-month period
preceding a related Due Date will be the annualized rate at which interest would
have to accrue in respect of such loan on the basis of a 360-day year consisting
of twelve 30-day months in order to produce the aggregate amount of interest
actually accrued in respect of such loan during such one-month period at the
related Mortgage Rate (net of the related Servicing Fee Rate); provided,
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however, that with respect to each Interest Reserve Loan (as defined herein),
(i) the Net Mortgage Rate for the one-month period preceding the Due Dates in
(a) January and February in each year that is not a leap year or (b) February
only in each year that is a leap year will be determined net of the Withheld
Amounts and (ii) the Net Mortgage Rate for the one-month period preceding the
Due Date in March will be determined after taking into account the addition of
the Withheld Amounts with respect to each such Mortgage Loan. See "Servicing of
the Mortgage Loans--Servicing and Other Compensation and Payment of Expenses"
and "--Modifications, Waivers, Amendments and Consents" herein.
The "Collection Period" for each Distribution Date is the period that begins
immediately following the Determination Date in the calendar month preceding the
month in which such Distribution Date occurs (or, in the case of the initial
Distribution Date, immediately following, in the case of any Mortgage Loan, the
related Cut-off Date) and ends on the Determination Date in the calendar month
in which such Distribution Date occurs. The "Determination Date" will be the 5th
day of each month or, if any such 5th day is not a business day, the immediately
preceding business day.
DISTRIBUTIONS
GENERAL. Distributions on or with respect to the Certificates will be made
by the Trustee, to the extent of available funds, on each Distribution Date,
commencing in September, 1998. Except as otherwise described below, all such
distributions will be made to the persons in whose names the Certificates are
registered at the close of business on the related Record Date and, as to each
such person, will be made by wire transfer in immediately available funds to the
account specified by the Certificateholder at a bank or other entity having
appropriate facilities therefor, if such Certificateholder will have provided
the Trustee with wiring instructions no less than five business days prior to
the related Record Date, or otherwise by check mailed to such Certificateholder.
The final distribution on any Certificate (determined without regard to any
possible future reimbursement of any Realized Losses or Additional Trust Fund
Expense (each as defined herein) previously allocated to such Certificate) will
be made in like manner, but only upon presentation and surrender of such
Certificate at the location that will be specified in a notice of the pendency
of such final distribution. Any distribution that is to be made with respect to
a Certificate in reimbursement of a Realized Loss or Additional Trust Fund
Expense previously allocated thereto, which reimbursement is to occur after the
date on which such Certificate is surrendered as contemplated by the preceding
sentence (the likelihood of any such distribution being remote), will be made by
check mailed to the Certificateholder that surrendered such Certificate. All
distributions made on or with respect to a Class of Certificates will be
allocated pro rata among such Certificates based on their respective Percentage
Interests in such Class.
THE AVAILABLE DISTRIBUTION AMOUNT. With respect to any Distribution Date,
distributions of interest on and principal of the Certificates will be made from
the Available Distribution Amount for such Distribution Date. The "Available
Distribution Amount" for any Distribution Date will, in general, equal:
(a) all amounts on deposit in the Certificate Account as of the close
of business on the related Determination Date, exclusive of any portion
thereof that represents one or more of the following:
(i) Monthly Payments collected but due on a Due Date subsequent to
the related Collection Period;
(ii) Prepayment Premiums (which are separately distributable on the
Certificates as hereinafter described);
(iii) amounts that are payable or reimbursable to any person other
than the Certificateholders (including amounts payable to the Servicer,
any Replacement Special Servicer or the Trustee as compensation or in
reimbursement of outstanding Advances and amounts payable in respect of
Additional Trust Fund Expenses);
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(iv) amounts deposited in the Certificate Account in error;
(v) with respect to any Distribution Date occurring in each
February, and in any January occurring in a year that is not a leap year,
the Withheld Amounts with respect to the Interest Reserve Loans to be
deposited in the Interest Reserve Account and held for future
distribution; and
(vi) amounts that represent Excess Interest;
(b) to the extent not already included in clause (a), any P&I Advances
made with respect to such Distribution Date and payments made by the
Servicer to cover Prepayment Interest Shortfalls and Balloon Payment
Interest Shortfalls incurred during the related Collection Period; plus
(c) for the Distribution Date occurring in each March, the Withheld
Amounts with respect to the Interest Reserve Loans then on deposit in the
Interest Reserve Account as described under "-- Interest Reserve Account"
below; plus
(d) with respect to any Mortgage Loan with a Due Date after the
Determination Date in each month, the Monthly Payment (other than any
Balloon Payment) due in the same month as such Distribution Date.
See "The Pooling and Servicing Agreements--Certificate Account" in the
Prospectus.
APPLICATION OF THE AVAILABLE DISTRIBUTION AMOUNT. On each Distribution
Date, the Trustee will apply the Available Distribution Amount for such date for
the following purposes and in the following order of priority:
(1) to pay interest to the holders of the respective Classes of Senior
Certificates, up to an amount equal to, and pro rata as among such Classes
in accordance with, all Distributable Certificate Interest in respect of
each such Class of Certificates for such Distribution Date and, to the
extent not previously paid, for each prior Distribution Date, if any;
(2) to pay principal: first to the holders of the Class A-1
Certificates, and then to the holders of the Class A-2 Certificates, in each
case, up to an amount equal to the lesser of (i) the then outstanding
Certificate Balance of such Class of Certificates and (ii) the Principal
Distribution Amount for such Distribution Date;
(3) to reimburse the holders of the respective Classes of Class A
Certificates, up to an amount equal to, and pro rata as among such Classes
in accordance with, the respective amounts of Realized Losses and Additional
Trust Fund Expenses, if any, previously deemed allocated to such Classes of
Certificates and for which no reimbursement has previously been paid; and
(4) to make payments on the Subordinate Certificates as set forth below;
provided that, on each Distribution Date after the aggregate Certificate Balance
of the Subordinate Certificates has been reduced to zero, and in any event on
the final Distribution Date in connection with a termination of the Trust Fund
(see "--Termination; Retirement of Certificates" below), the payments of
principal to be made as contemplated by clause (2) above with respect to the
Class A Certificates, will be so made to the holders of the respective Classes
of such Certificates, up to an amount equal to, and pro rata as among such
Classes in accordance with, the respective then outstanding Certificate Balances
of such Classes of Certificates.
On each Distribution Date, following the above-described distributions on
the Senior Certificates, the Trustee will apply the remaining portion, if any,
of the Available Distribution Amount for such date to make payments on the
respective Classes of Subordinate Certificates in alphabetical order of Class
designation. On each Distribution Date, the holders of each Class of Subordinate
Certificates will, to the
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extent of the Available Distribution Amount remaining after all required
distributions to be made therefrom (as described under this
"--Distributions--Application of the Available Distribution Amount" section) on
the Senior Certificates and each other Class of Subordinate Certificates, if
any, with an earlier alphabetical Class designation, be entitled: first, to
distributions of interest, up to an amount equal to all Distributable
Certificate Interest in respect of such Class of Certificates for such
Distribution Date and, to the extent not previously paid, for each prior
Distribution Date, if any; second, if the Certificate Balances of the Class A
Certificates and each other Class of Subordinate Certificates, if any, with an
earlier alphabetical Class designation have been reduced to zero, to
distributions of principal, up to an amount equal to the lesser of (a) the then
outstanding Certificate Balance of such Class of Certificates and (b) the
remaining portion, if any, of the Principal Distribution Amount for such
Distribution Date (or, on the final Distribution Date in connection with the
termination of the Trust Fund, up to an amount equal to the then outstanding
Certificate Balance of such Class of Certificates); and, third, to distributions
for purposes of reimbursement, up to an amount equal to all Realized Losses and
Additional Trust Fund Expenses, if any, previously deemed allocated to such
Class of Certificates and for which no reimbursement has previously been paid.
On each Distribution Date, following the above-described distributions on
the REMIC Regular Certificates, the Trustee will pay the remaining portion, if
any, of the Available Distribution Amounts for such date to the holders of the
REMIC Residual Certificates.
DISTRIBUTABLE CERTIFICATE INTEREST. The "Distributable Certificate
Interest" in respect of each Class of REMIC Regular Certificates for each
Distribution Date is equal to the Accrued Certificate Interest in respect of
such Class of Certificates for such Distribution Date, reduced by such Class of
Certificates' allocable share (calculated as described below) of any Net
Aggregate Prepayment Interest Shortfall for such Distribution Date.
The "Accrued Certificate Interest" in respect of each Class of REMIC Regular
Certificates for each Distribution Date is equal to one month's interest at the
Pass-Through Rate applicable to such Class of Certificates for such Distribution
Date accrued on the Certificate Balance or Notional Amount, as the case may be,
of such Class of Certificates outstanding immediately prior to such Distribution
Date. Accrued Certificate Interest will be calculated on the basis of a 360-day
year consisting of twelve 30-day months.
To the extent of that portion of its aggregate Servicing Fees for the
related Collection Period calculated at the Master Servicing Fee Rate for each
Mortgage Loan, the Servicer is required to make a non-reimbursable payment with
respect to each Distribution Date to cover the aggregate of any Prepayment
Interest Shortfalls incurred with respect to the Mortgage Asset Pool during each
Collection Period. The "Net Aggregate Prepayment Interest Shortfall" for any
Distribution Date will be the amount, if any, by which (a) the aggregate of all
Prepayment Interest Shortfalls incurred with respect to the Mortgage Asset Pool
during the related Collection Period, exceeds (b) any such payment made by the
Servicer with respect to such Distribution Date to cover such Prepayment
Interest Shortfalls. See "Servicing of the Mortgage Loans--Servicing and Other
Compensation and Payment of Expenses" herein. The Net Aggregate Prepayment
Interest Shortfall, if any, for each Distribution Date will be allocated on such
Distribution Date: first, to the respective Classes of Subordinate Certificates
sequentially in reverse alphabetical order of Class designation, in each case up
to the amount of the Accrued Certificate Interest in respect of such Class of
Certificates for such Distribution Date; and thereafter, among the respective
Classes of Senior Certificates, pro rata, in accordance with the respective
amounts of Accrued Certificate Interest for each such Class of Senior
Certificates for such Distribution Date.
PRINCIPAL DISTRIBUTION AMOUNT. The "Principal Distribution Amount" with
respect to any Distribution Date will, in general, equal the aggregate of the
following (without duplication):
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(a) the principal portions of all Monthly Payments (other than Balloon
Payments) and any Assumed Monthly Payments due or deemed due, as the case
may be, in respect of the Mortgage Loans for their respective Due Dates
occurring during the same calendar month as such Distribution Date;
(b) all voluntary principal prepayments received on the Mortgage Loans
during the related Collection Period;
(c) with respect to any Balloon Loan as to which the related stated
maturity date occurred, or any ARD Loan as to which the Anticipated
Repayment Date occurred, during or prior to the related Collection Period,
any payment of principal (exclusive of any voluntary principal prepayment
and any amount described in clause (d) below) made by or on behalf of the
related borrower during the related Collection Period, net of any portion of
such payment that represents a recovery of the principal portion of any
Monthly Payment (other than a Balloon Payment) due, or the principal portion
of any Assumed Monthly Payment deemed due, in respect of such Mortgage Loan
on a Due Date during or prior to the same calendar month as such
Distribution Date and not previously recovered;
(d) the portion of all Liquidation Proceeds, Condemnation Proceeds and
Insurance Proceeds received on the Mortgage Loans during the related
Collection Period that were identified and applied by the Servicer as
recoveries of principal thereof, in each case net of any portion of such
amounts that represents a recovery of the principal portion of any Monthly
Payment (other than a Balloon Payment) due, or the principal portion of any
Assumed Monthly Payment deemed due, in respect of the related Mortgage Loan
on a Due Date during or prior to the same calendar month as such
Distribution Date and not previously recovered; and
(e) if such Distribution Date is after the initial Distribution Date,
the excess, if any, of (i) the Principal Distribution Amount for the
immediately preceding Distribution Date, over (ii) the aggregate
distributions of principal made on the Principal Balance Certificates in
respect of such Principal Distribution Amount on such immediately preceding
Distribution Date.
An "Assumed Monthly Payment" is an amount deemed due in respect of: (i) any
Balloon Loan that is delinquent in respect of its Balloon Payment beyond the
first Determination Date that follows its stated maturity date and as to which
no arrangements have been agreed to for collection of the delinquent amounts; or
(ii) any Mortgage Loan as to which the related Mortgaged Property or Properties
have become REO Property or Properties. The Assumed Monthly Payment deemed due
on any such Balloon Loan on its stated maturity date and on any successive Due
Date that it remains or is deemed to remain outstanding shall equal the Monthly
Payment that would have been due thereon on such date if the related Balloon
Payment had not come due, but rather such Mortgage Loan had continued to
amortize in accordance with such loan's amortization schedule, if any, in effect
immediately prior to maturity and had continued to accrue interest in accordance
with such loan's terms in effect immediately prior to maturity. The Assumed
Monthly Payment deemed due on any such Mortgage Loan as to which the related
Mortgaged Property or Properties have become REO Property or Properties, on each
Due Date for so long as such REO Property or Properties remain part of the Trust
Fund, shall equal the Monthly Payment (or, in the case of a Balloon Loan
described in the prior sentence, the Assumed Monthly Payment) due or deemed due
on the last Due Date prior to the acquisition of such REO Property or
Properties.
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DISTRIBUTIONS OF PREPAYMENT PREMIUMS. Any Prepayment Premium (whether
described in the related Mortgage Loan documents as a fixed percentage
prepayment premium or a yield maintenance prepayment premium) actually collected
with respect to a Mortgage Loan during any particular Collection Period will be
distributed on the related Distribution Date to the holders of the Class A-1,
Class A-2, Class B, Class C, Class D, Class E, Class F and Class G Certificates
(as additional interest and not in reduction of the Certificate Balances
thereof) in an amount up to, in the case of each such Class, the product of (a)
such Prepayment Premium, (b) the Discount Rate Fraction for such Class and (c)
the Principal Allocation Fraction of such Class. The "Discount Rate Fraction"
for any such Class of Certificates is equal to a fraction (not greater than 1.0
or less than 0.0) the numerator of which is equal to the excess, if any, of (x)
the Pass-Through Rate for such Class of Certificates over (y) the relevant
Discount Rate (as defined below), and the denominator of which is equal to the
excess, if any, of (x) the Mortgage Rate of the related Mortgage Loan over (y)
the relevant Discount Rate. With respect to any Distribution Date and each such
Class of Certificates, the "Principal Allocation Fraction" is a fraction, the
numerator of which is the portion, if any, of the Principal Distribution Amount
allocated to such Class of Certificates for such Distribution Date, and the
denominator of which is the entire Principal Distribution Amount for such
Distribution Date. The portion of the Prepayment Premium remaining after the
payment of the amount calculated as described above will be distributed to the
holders of the Class X Certificates.
With respect to any prepaid Mortgage Loan, the "Discount Rate" means the
yield (compounded monthly) for "This Week" as reported by the Federal Reserve
Board in Federal Reserve Statistical Release H.15(519) for the constant maturity
treasury having a maturity coterminous with the Maturity Date or Anticipated
Repayment Date of such Mortgage Loan as of the Determination Date. If there is
no Discount Rate for instruments having a maturity coterminous with the
remaining term (to maturity or Anticipated Repayment Date, where applicable) of
the relevant Mortgage Loan, then the Discount Rate will be equal to the linear
interpolation of the yields of the constant maturity treasuries with maturities
next longer and shorter than such remaining term to maturity or Anticipated
Repayment Date.
The Prepayment Premiums, if any, collected on the Mortgage Loans during any
Collection Period may not be sufficient to fully compensate Certificateholders
of any Class for any loss in yield attributable to the related prepayments of
principal.
DISTRIBUTIONS OF EXCESS INTEREST. On each Distribution Date, 95% of any
Excess Interest collected on an ARD Loan during the related Collection Period
will be distributed among the holders of the Class A-1, Class A-2, Class B,
Class C, Class D, Class E, Class F and Class G Certificates, on a pro rata basis
in accordance with the respective initial Certificate Balances of such Classes
of Certificates, and the remainder of such Excess Interest will be distributed
to the holders of the Class X Certificates. There can be no assurance that any
Excess Interest will be collected on the ARD Loans.
TREATMENT OF REO PROPERTIES. Notwithstanding that any Mortgaged Property
may be acquired as part of the Trust Fund through foreclosure, deed in lieu of
foreclosure or otherwise, the related Mortgage Loan will be treated, for
purposes of, among other things, determining distributions on the Certificates,
allocations of Realized Losses and Additional Trust Fund Expenses to the
Certificates, and the amount of Servicing Fees and Special Servicing Fees
payable under the Pooling and Servicing Agreement, as having remained
outstanding until such REO Property is liquidated. Among other things, such
Mortgage Loan will be taken into account when determining Pass-Through Rates and
the Principal Distribution Amount. In connection therewith, operating revenues
and other proceeds derived from such REO Property (after application thereof to
pay certain costs and taxes, including certain reimbursements payable to the
Servicer, any Replacement Special Servicer and/or the Trustee, incurred in
connection with the operation and disposition of such REO Property) will be
"applied" by the Servicer as principal, interest and other amounts "due" on such
Mortgage Loan, and, subject to the applicable limitations described under "--P&I
Advances" below, the Servicer will be required to make P&I Advances in respect
of such Mortgage Loan, in all cases as if such Mortgage Loan had remained
outstanding.
INTEREST RESERVE ACCOUNT. The Trustee will establish and maintain an
"Interest Reserve Account" in the name of the Trustee for the benefit of the
holders of the Certificates. With respect to each Distribution
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Date occurring in February and each Distribution Date occurring in any January
which occurs in a year that is not a leap year, there shall be deposited, in
respect of each Mortgage Loan bearing interest computed on an actual/360 basis
(the "Interest Reserve Loans"), an amount equal to one day's interest at the
related Mortgage Rate (less the Servicing Fee) on the respective Stated
Principal Balance, as of the immediately preceding Due Date to the extent a
Monthly Payment or P&I Advance is made in respect thereof (all amounts so
deposited in any consecutive January (if applicable) and February, "Withheld
Amounts"). With respect to each Distribution Date occurring in March, an amount
is required to be withdrawn from the Interest Reserve Account in respect of each
Interest Reserve Loan equal to the related Withheld Amounts from the preceding
January (if applicable) and February, if any, and deposited into the Certificate
Account.
SUBORDINATION; ALLOCATION OF LOSSES AND CERTAIN EXPENSES
As and to the extent described herein, the rights of holders of Subordinate
Certificates to receive distributions of amounts collected or advanced on the
Mortgage Loans will, in the case of each Class thereof, be subordinated to the
rights of holders of the Senior Certificates and, further, to the rights of
holders of each other Class of Subordinate Certificates, if any, with an earlier
alphabetical Class designation. This subordination is intended to enhance the
likelihood of timely receipt by holders of the respective Classes of Senior
Certificates of the full amount of Distributable Certificate Interest payable in
respect of their Certificates on each Distribution Date, and the ultimate
receipt by holders of the respective Classes of Class A Certificates of
principal equal to, in each such case, the entire Certificate Balance of such
Class of Certificates. Similarly, but to decreasing degrees, this subordination
is also intended to enhance the likelihood of timely receipt by holders of the
other Classes of Offered Certificates of the full amount of Distributable
Certificate Interest payable in respect of their Certificates on each
Distribution Date, and the ultimate receipt by holders of such other Classes of
Offered Certificates of principal equal to, in each such case, the entire
Certificate Balance of such Class of Certificates. The subordination of any
Class of Subordinate Certificates will be accomplished by, among other things,
the application of the Available Distribution Amount on each Distribution Date
in the order of priority described under "--Distributions--Application of the
Available Distribution Amount" above. No other form of Credit Support will be
available for the benefit of holders of the Offered Certificates.
If, following the distributions to be made in respect of the Certificates on
any Distribution Date, the aggregate Stated Principal Balance of the Mortgage
Asset Pool that will be outstanding immediately following such Distribution Date
is less than the then aggregate Certificate Balance of the Principal Balance
Certificates, the respective Certificate Balances of the Class N, Class M, Class
L, Class K, Class J, Class H, Class G, Class F, Class E, Class D, Class C and
Class B Certificates will be reduced, sequentially in that order, in the case of
each such Class until such deficit (or the related Certificate Balance) is
reduced to zero (whichever occurs first). If any portion of such deficit remains
at such time as the Certificate Balances of such Classes of Certificates are
reduced to zero, then the respective Certificate Balances of the Class A-1 and
Class A-2 Certificates will be reduced, pro rata in accordance with the relative
sizes of the remaining Certificate Balances of such Classes of Certificates,
until such deficit (or each such Certificate Balance) is reduced to zero. Any
such deficit may be the result of Realized Losses incurred in respect of the
Mortgage Loans and/or Additional Trust Fund Expenses. The foregoing reductions
in the Certificate Balances of the Principal Balance Certificates will be deemed
to constitute an allocation of any such Realized Losses and Additional Trust
Fund Expenses. Any such reduction will also have the effect of reducing the
Notional Amount of the Class X Certificates.
"Realized Losses" are losses on or in respect of the Mortgage Loans arising
from the inability of the Servicer to collect all amounts due and owing under
any such Mortgage Loan, including by reason of the fraud or bankruptcy of a
borrower or a casualty of any nature at a Mortgaged Property, to the extent not
covered by insurance. The Realized Loss in respect of a liquidated Mortgage Loan
(or related REO Property or Properties) is an amount generally equal to the
excess, if any, of (a) the outstanding principal balance of such Mortgage Loan
as of the date of liquidation, together with (i) all accrued and unpaid interest
thereon at the related Mortgage Rate to but not including the Due Date in the
Collection Period in
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which the liquidation occurred and (ii) all related unreimbursed Servicing
Advances and outstanding liquidation expenses, over (b) the aggregate amount of
Liquidation Proceeds, if any, recovered in connection with such liquidation. If
any portion of the debt (other than Excess Interest) due under a Mortgage Loan
is forgiven, whether in connection with a modification, waiver or amendment
granted or agreed to by the Servicer or in connection with the bankruptcy or
similar proceeding involving the related borrower, the amount so forgiven also
will be treated as a Realized Loss.
"Additional Trust Fund Expenses" include, among other things, (i) Special
Servicing Fees, Workout Fees and Liquidation Fees, (ii) interest in respect of
unreimbursed Advances, (iii) the cost of various opinions of counsel required or
permitted to be obtained in connection with the servicing of the Mortgage Loans
and the administration of the Trust Fund, (iv) certain unanticipated,
non-Mortgage Loan specific expenses of the Trust Fund, including certain
indemnities and reimbursements to the Trustee as described under "The Pooling
and Servicing Agreements--Certain Matters Regarding the Trustee" in the
Prospectus, certain indemnities and reimbursements to the Servicer and the
Depositor (and certain indemnities and reimbursements to a Replacement Special
Servicer comparable to those for the Servicer) as described under "The Pooling
and Servicing Agreements--Certain Matters Regarding the Master Servicer and the
Depositor" in the Prospectus and certain federal, state and local taxes, and
certain tax-related expenses, payable out of the Trust Fund as described under
"Servicing of the Mortgage Loans--REO Properties" herein and "Certain Federal
Income Tax Consequences-- REMICs--Taxation of Owners of REMIC Residual
Certificates--Prohibited Transactions Tax and Other Taxes" in the Prospectus,
(v) any amounts expended on behalf of the Trust Fund to remediate an adverse
environmental condition at any Mortgaged Property securing a defaulted Mortgage
Loan (see "The Pooling and Servicing Agreements--Realization Upon Defaulted
Mortgage Loans" in the Prospectus), and (vi) any other expense of the Trust Fund
not specifically included in the calculation of "Realized Loss" for which there
is no corresponding collection from a borrower. Additional Trust Fund Expenses
will reduce amounts payable to Certificateholders and, consequently, may result
in a loss on the Offered Certificates.
P&I ADVANCES
With respect to each Distribution Date, unless the Servicer, in its
reasonable judgment, believes that the funds therefor would not be recoverable
from Related Proceeds and subject to the recoverability standard described in
the Prospectus, the Servicer will be obligated to make P&I Advances out of its
own funds or, subject to the replacement thereof as provided in the Pooling and
Servicing Agreement, funds held in the Certificate Account that are not required
to be part of the Available Distribution Amount for such Distribution Date, in
an amount generally equal to the aggregate of all Monthly Payments (other than
Balloon Payments) and any Assumed Monthly Payments (in each case net of any
related Workout Fee) that were due or deemed due, as the case may be, in respect
of the Mortgage Loans during the related Collection Period and that were not
paid by or on behalf of the related borrowers or otherwise collected as of the
close of business on the last day of the related Collection Period or other
specified date prior to such Distribution Date. The Servicer's obligations to
make P&I Advances in respect of any Mortgage Loan will continue through
liquidation of such Mortgage Loan or disposition of any REO Property acquired in
respect thereof. Notwithstanding the foregoing, if it is determined that an
Appraisal Reduction Amount exists with respect to any Required Appraisal
Mortgage Loan (each as defined below), then, with respect to the Distribution
Date immediately following the date of such determination and with respect to
each subsequent Distribution Date for so long as such Appraisal Reduction Amount
exists, in the event of subsequent delinquencies thereon, the interest portion
of the P&I Advance in respect of such Mortgage Loan will be reduced (no
reduction to be made in the principal portion, however) to equal the product of
(i) the amount of the interest portion of such P&I Advance that would otherwise
be required to be made for such Distribution Date without regard to this
sentence, multiplied by (ii) a fraction (expressed as a percentage), the
numerator of which is equal to the Stated Principal Balance of such Mortgage
Loan, net of such Appraisal Reduction Amount, and the denominator of which is
equal to the Stated Principal Balance of such Mortgage Loan. See "--Appraisal
Reductions" below. If
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the Servicer fails to make a required P&I Advance, the Trustee will be required
to make such P&I Advance. If the Trustee fails to make a required P&I Advance,
the Fiscal Agent will be required to make such P&I Advance. See "The Trustee and
the Fiscal Agent" below.
The Servicer, the Trustee and the Fiscal Agent will each be entitled to
recover any P&I Advance made by it from Related Proceeds collected in respect of
the Mortgage Loan as to which such P&I Advance was made. Notwithstanding the
foregoing, none of the Servicer, the Trustee or the Fiscal Agent will be
obligated to make a P&I Advance that would, if made, constitute a Nonrecoverable
Advance. The Servicer, the Trustee and the Fiscal Agent will each be entitled to
recover any P&I Advance previously made by it that is, at any time, determined
to be a Nonrecoverable Advance, out of funds received on or in respect of other
Mortgage Loans. See "Description of the Certificates--Advances in Respect of
Delinquencies" and "The Pooling and Servicing Agreements--Certificate Account"
in the Prospectus.
The Servicer, the Trustee and the Fiscal Agent will each be entitled with
respect to any Advance made thereby, and any Replacement Special Servicer will
be entitled with respect to any Servicing Advance made thereby, to interest
accrued on the amount of such Advance for so long as it is outstanding at a rate
per annum (the "Reimbursement Rate") equal to the "prime rate" as published in
the "Money Rates" section of The Wall Street Journal, as such "prime rate" may
change from time to time. Such interest on any Advance will be payable to the
Servicer, any Replacement Special Servicer, the Trustee, or the Fiscal Agent, as
the case may be, out of default interest collected in respect of the related
Mortgage Loan or, in connection with the reimbursement of such Advance, out of
any amounts then on deposit in the Certificate Account. To the extent not offset
by default interest actually collected in respect of any defaulted Mortgage
Loan, interest accrued on outstanding Advances made in respect thereof will
result in a reduction in amounts payable on the Certificates.
APPRAISAL REDUCTIONS
Upon the earliest of (i) the date on which any Mortgage Loan becomes a
Modified Mortgage Loan (as defined below), (ii) the 90th day following the
occurrence of any uncured delinquency in Monthly Payments with respect to any
Mortgage Loan, (iii) the date on which a receiver is appointed and continues in
such capacity in respect of a Mortgaged Property securing any Mortgage Loan and
(iv) the date on which a Mortgaged Property securing any Mortgage Loan becomes
an REO Property (each such Mortgage Loan, a "Required Appraisal Loan"), the
Servicer will be required, within 30 days (or such longer period as the Servicer
is diligently and in good faith proceeding to obtain such appraisal), to obtain
an appraisal of the related Mortgaged Property from an independent
MAI-designated appraiser, unless such an appraisal had previously been obtained
within the prior twelve months. The cost of such appraisal will be advanced by
the Servicer, subject to its right to be reimbursed therefor as a Servicing
Advance. As a result of any such appraisal, it may be determined that an
Appraisal Reduction Amount exists with respect to the related Required Appraisal
Loan. The "Appraisal Reduction Amount" for any Required Appraisal Loan will be
an amount, calculated as of the Determination Date immediately succeeding the
date on which the appraisal is obtained, equal to the excess, if any, of (a) the
sum of (i) the Stated Principal Balance of such Required Appraisal Loan, (ii) to
the extent not previously advanced by or on behalf of the Servicer, the Trustee
or the Fiscal Agent, all unpaid interest on the Required Appraisal Loan through
the most recent Due Date prior to such Determination Date at a per annum rate
equal to the related Mortgage Rate, (iii) all related unreimbursed Advances made
with respect to such Required Appraisal Loan plus interest accrued on such
Advances at the Reimbursement Rate and (iv) all currently due and unpaid real
estate taxes and assessments, insurance premiums, and, if applicable, ground
rents in respect of the related Mortgaged Property, net of any escrow reserves
held by the Servicer to cover any such item, over (b) 90% of an amount equal to
(i) the appraised value of the related Mortgaged Property or REO Property as
determined by such appraisal, net of (ii) the amount of any liens on such
property that are prior to the lien of the Required Appraisal Loan, are not in
respect of items included in clause (a)(iv) above and were not taken into
account in the calculation of such appraised value.
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With respect to each Required Appraisal Loan (unless such Mortgage Loan has
become a Corrected Mortgage Loan and has remained current for twelve consecutive
Monthly Payments, and no other Special Servicing Event has occurred with respect
thereto during the preceding twelve months), the Servicer is required, within 30
days of each anniversary of such loan's becoming a Required Appraisal Loan, to
order an update of the prior appraisal (the cost of which will be covered by and
reimbursable as a Servicing Advance). Based upon such appraisal, the Servicer is
to redetermine and report to the Trustee the Appraisal Reduction Amount, if any,
with respect to such Mortgage Loan.
A "Modified Mortgage Loan" is any Mortgage Loan as to which any Special
Servicing Event has occurred and which has been modified by the Servicer in a
manner that: (a) affects the amount or timing of any payment of principal or
interest due thereon (other than, or in addition to, bringing current Monthly
Payments with respect to such Mortgage Loan); (b) except as expressly
contemplated by the related Mortgage, results in a release of the lien of the
Mortgage on any material portion of the related Mortgaged Property without a
corresponding principal prepayment in an amount not less than the fair market
value (as is) of the property to be released; or (c) in the reasonable good
faith judgment of the Servicer, otherwise materially impairs the security for
such Mortgage Loan or reduces the likelihood of timely payment of amounts due
thereon.
REPORTS TO CERTIFICATEHOLDERS; CERTAIN AVAILABLE INFORMATION
TRUSTEE REPORTS. On each Distribution Date, the Trustee will be required to
forward by mail to each holder of an Offered Certificate as of the related
Record Date a Distribution Date Statement providing various items of information
relating to distributions made on such date with respect to the relevant Class
and the recent status of the Mortgage Asset Pool. For a discussion of the
particular items of information to be provided in each Distribution Date
Statement, as well as a discussion of certain annual information reports to be
furnished by the Trustee to persons who at any time during the prior calendar
year were holders of the Offered Certificates, see "Description of the
Certificates--Reports to Certificateholders" in the Prospectus.
In addition, based on information provided in monthly reports prepared by
the Servicer and delivered to the Trustee, the Trustee will prepare and/or
forward on each Distribution Date to each Offered Certificateholder, the
following statements and reports (collectively with the Distribution Date
Statements, the "Trustee Reports"), substantially in the forms set forth in
Annex B (although such forms may be subject to change over time) and containing,
among other things, substantially the information set forth below:
(1) A report containing information regarding the Mortgage Loans as of
the close of business on the immediately preceding Determination Date, which
report shall contain certain of the categories of information regarding the
Mortgage Loans set forth in this Prospectus Supplement in the tables under
the caption "Annex A: Certain Characteristics of the Mortgage Loans"
(calculated, where applicable, on the basis of the most recent relevant
information provided by the borrowers to the Servicer and by the Servicer to
the Trustee) and such information shall be presented in a loan-by-loan and
tabular format substantially similar to the formats utilized in this
Prospectus Supplement on Annex A.
(2) A "Delinquent Loan Status Report" setting forth, among other things,
those Mortgage Loans which, as of the close of business on the immediately
preceding Determination Date, were delinquent 30-59 days, delinquent 60-89
days, delinquent 90 days or more, current but specially serviced, or in
foreclosure but not REO Property or which have become REO Property.
(3) An "Historical Loan Modification Report" setting forth, among other
things, those Mortgage Loans which, as of the close of business on the
immediately preceding Determination Date, have been modified pursuant to the
Pooling and Servicing Agreement (i) during the Collection
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Period ending on such Determination Date and (ii) since the Cut-off Date for
such Mortgage Loan, showing the original and the revised terms thereof.
(4) An "Historical Loss Estimate Report" setting forth, among other
things, as of the close of business on the immediately preceding
Determination Date, (i) the aggregate amount of liquidation proceeds and
liquidation expenses, both for the Collection Period ending on such
Determination Date and for all prior Collection Periods, and (ii) the amount
of Realized Losses occurring both during such Collection Period and
historically, set forth on a Mortgage Loan-by-Mortgage Loan basis.
(5) An "REO Status Report" setting forth, among other things, with
respect to each REO Property that was included in the Trust Fund as of the
close of business on the immediately preceding Determination Date, (i) the
acquisition date of such REO Property, (ii) the amount of income collected
with respect to any REO Property (net of related expenses) and other
amounts, if any, received on such REO Property during the Collection Period
ending on such Determination Date and (iii) the value of the REO Property
based on the most recent appraisal or other valuation thereof available to
the Servicer as of such date of determination (including any prepared
internally by the Servicer).
(6) A "Servicer Watch List" setting forth, among other things, certain
Mortgage Loans which have experienced a material decrease in debt service
coverage, a loss of or bankruptcy of the largest tenant (to the extent the
Servicer has actual knowledge of such loss or bankruptcy) or are approaching
maturity.
The Trustee, based on information provided in monthly reports prepared by
the Servicer and delivered to the Trustee, will also prepare and/or forward on
each Distribution Date to each holder of the Offered Certificates a "Loan Payoff
Notification Report" setting forth those Mortgage Loans, the borrowers of which
have requested a pay off balance on their respective Mortgage Loans.
None of the above reports will include any information that the Servicer
deems to be confidential. Neither the Servicer nor the Trustee shall be
responsible for the accuracy or completeness of any information supplied to it
by a borrower or other third party that is included in any reports, statements,
materials or information prepared or provided by the Servicer or the Trustee, as
applicable. Certain information will be made available to Certificateholders by
electronic transmission as may be agreed upon between the Depositor and the
Trustee.
Prior to each Distribution Date, the Servicer will deliver to the Trustee
(by electronic means) a "Comparative Financial Status Report" containing
substantially the content set forth in Annex B setting forth, among other
things, the occupancy, revenue, net operating income and debt service coverage
ratio for each Mortgage Loan or related Mortgaged Property as of the
Determination Date immediately preceding the preparation of such report for each
of the following three periods (but only to the extent the related borrower is
required by the Mortgage to deliver and does deliver, or otherwise agrees to
provide and does provide, such information): (i) the most current available
year-to-date; (ii) each of the previous two full fiscal years stated separately;
and (iii) the "base year" (representing the original analysis of information
used as of the Cut-Off Date for such Mortgage Loan).
In addition, the Servicer is also required to perform with respect to each
Mortgaged Property and REO Property:
(a) Within 30 days after receipt of a quarterly operating statement, if
any, commencing with the calendar quarter ended September 30, 1998, an
"Operating Statement Analysis" containing revenue, expense, and net
operating income information substantially in accordance with Annex B (but
only to the extent the related borrower is required by the Mortgage to
deliver and does deliver, or otherwise agrees to provide and does provide,
such information) for such Mortgaged Property or
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REO Property as of the end of such calendar quarter. The Servicer will
deliver to the Trustee by electronic means the Operating Statement Analysis
upon request, and
(b) Within 30 days after receipt by the Servicer of an annual operating
statement, an NOI adjustment analysis containing substantially the content
set forth in Annex B (the "NOI Adjustment Worksheet") (but only to the
extent the related borrower is required by the Mortgage to deliver and does
deliver, or otherwise agrees to provide and does provide, such information)
presenting the computation made in accordance with the methodology described
in the Pooling and Servicing Agreement to "normalize" the full year net
operating income and debt service coverage numbers used by the Servicer in
its reporting obligation in (1) above. The Servicer will deliver to the
Trustee by electronic means the "NOI Adjustment Worksheet" upon request.
Certificate Owners who have certified to the Trustee as to their beneficial
ownership of any Offered Certificate may also obtain copies of any of the
Trustee Reports described above upon request. Otherwise, until such time as
Definitive Certificates are issued in respect of the Offered Certificates, the
foregoing information will be available to the related Certificate Owners only
to the extent that it is forwarded by or otherwise available through DTC and its
Participants. Conveyance of notices and other communications by DTC to
Participants, and by Participants to Certificate Owners, will be governed by
arrangements among them, subject to any statutory or regulatory requirements as
may be in effect from time to time. The Servicer, the Trustee, the Depositor and
the Certificate Registrar are required to recognize as Certificateholders only
those persons in whose names the Certificates are registered on the books and
records of the Certificate Registrar.
OTHER INFORMATION. The Trustee will make available at its offices primarily
responsible for administration of the Trust Fund, during normal business hours,
for review by any holder, Certificate Owner or prospective purchaser of an
Offered Certificate, originals or copies of, among other things, the following
items: (a) the Pooling and Servicing Agreement and any amendments thereto, (b)
all Trustee Reports delivered to holders of the relevant Class of Offered
Certificates since the Delivery Date, (c) all officer's certificates and
accountants' reports delivered to the Trustee since the Delivery Date as
described under "The Pooling and Servicing Agreements--Evidence as to
Compliance" in the Prospectus, (d) the most recent property inspection report
prepared by or on behalf of the Servicer and delivered to the Trustee in respect
of each Mortgaged Property, (e) the most recent annual operating statements, if
any, collected by or on behalf of the Servicer and delivered to the Trustee in
respect of each Mortgaged Property, and (f) the Mortgage Note, Mortgage and
other legal documents relating to each Mortgage Loan, including any and all
modifications, waivers and amendments of the terms of a Mortgage Loan entered
into by the Servicer and delivered to the Trustee. Copies of any and all of the
foregoing items will be available from the Trustee upon reasonable written
request; provided that the Trustee will be permitted to require payment of a sum
sufficient to cover the reasonable costs and expenses of providing such copies;
and provided, further, that the Trustee may require (x) in the case of a
Certificate Owner, a written confirmation executed by the requesting person or
entity, in a form reasonably acceptable to the Trustee, generally to the effect
that such person or entity is a beneficial owner of Offered Certificates, is
requesting the information solely for use in evaluating such person's or
entity's investment in such Certificates and will otherwise keep such
information confidential and (y) in the case of a prospective purchaser,
confirmation executed by the requesting person or entity, in a form reasonably
acceptable to the Trustee, generally to the effect that such person or entity is
a prospective purchaser of Offered Certificates or an interest therein, is
requesting the information solely for use in evaluating a possible investment in
such Certificates and will otherwise keep such information confidential.
Certificateholders, by the acceptance of their Certificates, will be deemed to
have agreed to keep such information confidential. The Servicer may, but is not
required, make certain information available over the Internet.
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VOTING RIGHTS
At all times during the term of the Pooling and Servicing Agreement, 98% of
the voting rights for the Certificates (the "Voting Rights") shall be allocated
among the holders of the respective Classes of Principal Balance Certificates in
proportion to the Certificate Balances (adjusted as described below) of their
Certificates, 1% of the Voting Rights shall be allocated among the holders of
the Class X Certificates, and the remaining Voting Rights shall be allocated
equally among the holders of the respective Classes of REMIC Residual
Certificates. Voting Rights allocated to a Class of Certificateholders shall be
allocated among such Certificateholders in proportion to the Percentage
Interests in such Class evidenced by their respective Certificates. Appraisal
Reduction Amounts will be allocated in reduction of the respective Certificate
Balances of the Class N, Class M, Class L, Class K, Class J, Class H, Class G,
Class F, Class E, Class D, Class C, Class B and Class A Certificates (pro rata
between the Class A-1 and Class A-2 Certificates), in that order, solely for
purposes of calculating Voting Rights.
TERMINATION; RETIREMENT OF CERTIFICATES
The obligations created by the Pooling and Servicing Agreement will
terminate following the earliest of (i) the final payment (or Advance in respect
thereof) or other liquidation of the last Mortgage Loan or REO Property subject
thereto, and (ii) subject to the requirement that the then aggregate Stated
Principal Balance of the Mortgage Asset Pool be less than 1% of the Initial Pool
Balance, the purchase of all of the assets of the Trust Fund by the Servicer or,
if the Servicer elects not to make such purchase, the Depositor. Written notice
of termination of the Pooling and Servicing Agreement will be given to each
Certificateholder, and the final distribution will be made only upon surrender
and cancellation of the Certificates at the office of the Certificate Registrar
or other location specified in such notice of termination.
Any such purchase by the Servicer or the Depositor of all the Mortgage Loans
and other assets in the Trust Fund is required to be made at a price equal to
(a) the sum of (i) the aggregate Purchase Price of all the Mortgage Loans
(exclusive of Mortgage Loans as to which the related Mortgaged Properties have
become REO Properties) then included in the Trust Fund and (ii) the aggregate
fair market value of all REO Properties then included in the Trust Fund (which
fair market value for any REO Property may be less than the Purchase Price for
the corresponding Mortgage Loan), as determined by an appraiser mutually agreed
upon by the Servicer and the Trustee, reduced by (b) if such purchase is by the
Servicer, the aggregate of all amounts payable or reimbursable to the Servicer
under the Pooling and Servicing Agreement.
On the final Distribution Date, the aggregate amount paid by the Servicer or
the Depositor as the case may be, for the Mortgage Loans and other assets in the
Trust Fund (if the Trust Fund is to be terminated as a result of the purchase
described in the preceding paragraph), together with all other amounts on
deposit in the Certificate Account, net of any portion of the foregoing not
otherwise payable to a person other than the Certificateholders (see "The
Pooling and Servicing Agreements--Certificate Account" in the Prospectus), will
be applied as described above under "--Distributions--Application of the
Available Distribution Amount."
THE TRUSTEE AND THE FISCAL AGENT
THE TRUSTEE. LaSalle National Bank ("LaSalle") will act as Trustee. LaSalle
is a subsidiary of LaSalle National Corporation which is a subsidiary of the
Fiscal Agent. The Trustee is at all times required to be, and will be required
to resign if it fails to be, (i) a corporation or association, organized and
doing business under the laws of the United States of America or any state
thereof or the District of Columbia, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of not less than
$100,000,000 (or, under certain conditions, such lesser amount that each Rating
Agency
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has confirmed would not cause it to qualify, downgrade or withdraw its rating on
any Class of Certificates) and subject to supervision or examination by federal
or state authority and (ii) an institution whose long-term senior unsecured debt
(or that of its fiscal agent, if applicable) is rated not less than "AA" or its
equivalent by the Rating Agencies (or such lower ratings as the Rating Agencies
would permit without an adverse effect on any of the then-current ratings of the
Certificates). The corporate trust office of the Trustee responsible for
administration of the Trust Fund (the "Corporate Trust Office") is located at
135 South LaSalle Street, Suite 1625, Chicago, Illinois 60674-4107, Attention:
Asset-Backed Securities Trust Services Group--GMAC Commercial Mortgage
Securities, Inc., Mortgage Pass-Through Certificates, Series 1998-C2. The
Trustee will make (x) certain information contained in the monthly Distribution
Date Statement available through its ASAP System to Certificateholders dialing
telephone number (312) 904-2200 and requesting statement No. 354 and (y) certain
information regarding the Mortgage Loans available in electronic format through
its dial-up bulletin board service, to Certificateholders dialing telephone
number (714) 282-3990. Additionally, certain information regarding the Mortgage
Loans will be made available at the website maintained by LaSalle at
www.lnbabs.com. The Trustee may provide such information through means other
than its ASAP System, dial up bulletin board service or website provided that
(i) the Servicer shall have consented to such alternative means and (ii)
Certificateholders shall have received notice of such alternative means.
THE FISCAL AGENT. ABN AMRO Bank N.V., a Netherlands banking corporation and
the indirect corporate parent of the Trustee, will act as fiscal agent (the
"Fiscal Agent") for the Trust Fund and will be obligated to make any Advance
required to be made, and not made, by the Servicer and the Trustee under the
Pooling and Servicing Agreement, provided that the Fiscal Agent will not be
obligated to make any Advance that it deems to be a Nonrecoverable Advance. The
Fiscal Agent will be entitled (but not obligated) to rely conclusively on any
determination by the Servicer or the Trustee that an Advance, if made, would be
a Nonrecoverable Advance. The Fiscal Agent will be entitled to reimbursement for
each Advance made by it plus interest thereon at the Reimbursement Rate in the
same manner and to the same extent as the Servicer and the Trustee. See "--P&I
Advances" and "Servicing of the Mortgage Loans--Servicing and Other Compensation
and Payment of Expenses." The Fiscal Agent will be entitled to various rights,
protections and indemnities similar to those afforded the Trustee. The Trustee
will be responsible for payment of the compensation of the Fiscal Agent. As of
December 31, 1997, the Fiscal Agent had consolidated assets of approximately
$114 billion. In the event that LaSalle shall, for any reason, cease to act as
Trustee under the Pooling Agreement, ABN AMRO Bank N.V. likewise shall no longer
serve in the capacity of Fiscal Agent thereunder.
YIELD AND MATURITY CONSIDERATIONS
YIELD CONSIDERATIONS
GENERAL. The yield on any Offered Certificate will depend on: (i) the
Pass-Through Rate in effect from time to time for such Certificate; (ii) the
price paid for such Certificate and the rate and timing of payments of principal
on such Certificate; and (iii) the aggregate amount of distributions on such
Certificate.
PASS-THROUGH RATE. The Pass-Through Rates for the respective Classes of
Principal Balance Certificates will, in the case of each such Class, be fixed.
The Pass-Through Rate for the Class X Certificates for any Distribution Date
will be variable and will be based on the Weighted Average Net Mortgage Rate for
such Distribution Date. Accordingly, the yield on the Class X Certificates will
be sensitive to changes in the relative composition of the Mortgage Loans as a
result of scheduled amortization, voluntary prepayments, liquidations of
Mortgage Loans following default and repurchases of Mortgage Loans. Losses or
payments of principal on the Mortgage Loans with higher Net Mortgage Rates could
result in a reduction in the Weighted Average Net Mortgage Rate, thereby
reducing the Pass-Through Rate for the Class X Certificates.
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See "Description of the Certificates--Pass-Through Rates" and "Description
of the Mortgage Asset Pool" herein and "--Yield Considerations--Rate and Timing
of Principal Payments" and "--Yield Sensitivity of the Class X Certificates"
below.
RATE AND TIMING OF PRINCIPAL PAYMENTS. The yield to holders of the Class X
Certificates and any other Offered Certificates that are purchased at a discount
or premium will be affected by the rate and timing of principal payments on the
Mortgage Loans (including principal prepayments on the Mortgage Loans resulting
from both voluntary prepayments by the mortgagors and involuntary liquidations).
The rate and timing of principal payments on the Mortgage Loans will in turn be
affected by, among other things, the amortization schedules thereof, the dates
on which Balloon Payments are due and the rate and timing of principal
prepayments and other unscheduled collections thereon (including for this
purpose, collections made in connection with liquidations of Mortgage Loans due
to defaults, casualties or condemnations affecting the Mortgaged Properties, or
purchases of Mortgage Loans out of the Trust Fund). Prepayments and, assuming
the respective stated maturity dates thereof have not occurred, liquidations and
purchases of the Mortgage Loans, will result in distributions on the Principal
Balance Certificates of amounts that otherwise would have been distributed (and
reductions in the Notional Amount of the Class X Certificates that would
otherwise have occurred) over the remaining terms of the Mortgage Loans.
Defaults on the Mortgage Loans, particularly at or near their stated maturity
dates, may result in significant delays in payments of principal on the Mortgage
Loans (and, accordingly, on the Principal Balance Certificates) while work-outs
are negotiated or foreclosures are completed. See "Servicing of the Mortgage
Loans--Modifications, Waivers, Amendments and Consents" herein and "The Pooling
and Servicing Agreements--Realization Upon Defaulted Mortgage Loans" and
"Certain Legal Aspects of Mortgage Loans--Foreclosure" in the Prospectus. The
failure on the part of any borrower to pay its ARD Loan on its Anticipated
Repayment Date may result in significant delays in payments of principal on such
ARD Loan and, accordingly, on the Offered Certificates. Because the rate of
principal payments on the Mortgage Loans will depend on future events and a
variety of factors (as described below), no assurance can be given as to such
rate or the rate of principal prepayments in particular. The Depositor is not
aware of any relevant publicly available or authoritative statistics with
respect to the historical prepayment experience of a large group of mortgage
loans comparable to the Mortgage Loans.
The extent to which the yield to maturity of an Offered Certificate may vary
from the anticipated yield will depend upon the degree to which such Certificate
is purchased at a discount or premium and when, and to what degree, payments of
principal on the Mortgage Loans are in turn distributed on or otherwise result
in the reduction of the principal balance or notional amount, as the case may
be, of such Certificate. An investor should consider, in the case of any Offered
Certificate purchased at a discount, the risk that a slower than anticipated
rate of principal payments on such Certificate could result in an actual yield
to such investor that is lower than the anticipated yield and, in the case of
any Offered Certificate purchased at a premium, the risk that a faster than
anticipated rate of principal payments on such Certificate could result in an
actual yield to such investor that is lower than the anticipated yield. In
general, the earlier a payment of principal is made on an Offered Certificate
purchased at a discount or premium, the greater will be the effect on an
investor's yield to maturity. As a result, the effect on an investor's yield of
principal payments on such investor's Offered Certificates occurring at a rate
higher (or lower) than the rate anticipated by the investor during any
particular period would not be fully offset by a subsequent like reduction (or
increase) in the rate of principal payments. The yield to maturity of the Class
X Certificates will be highly sensitive to the rate and timing of principal
payments (including by reason of prepayments, defaults and liquidations) on or
in respect of the Mortgage Loans. Investors in the Class X Certificates should
fully consider the associated risks, including the risk that an extremely rapid
rate of amortization and prepayment of the Mortgage Loans could result in the
failure of such investors to fully recoup their initial investments.
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LOSSES AND SHORTFALLS. The yield to holders of the Offered Certificates
will also depend on the extent to which such holders are required to bear the
effects of any losses or shortfalls on the Mortgage Loans. Losses and other
shortfalls on the Mortgage Loans will generally be borne: first, by the holders
of the respective Classes of Subordinate Certificates, in reverse alphabetical
order of Class designation, to the extent of amounts (or, in the case of a Net
Aggregate Prepayment Interest Shortfall, just interest) otherwise distributable
in respect of their Certificates; and then, by the holders of the Senior
Certificates. In addition, reductions in the balances of the Principal Balance
Certificates will also reduce the Notional Amount of the Class X Certificates.
CERTAIN RELEVANT FACTORS. The rate and timing of principal payments and
defaults and the severity of losses on the Mortgage Loans may be affected by a
number of factors, including, without limitation, prevailing interest rates, the
terms of the Mortgage Loans (for example, Prepayment Premiums, prepayment
lock-out periods and amortization terms that require Balloon Payments), the
demographics and relative economic vitality of the areas in which the Mortgaged
Properties are located and the general supply and demand for comparable
residential and/or commercial space in such areas, the quality of management of
the Mortgaged Properties, the servicing of the Mortgage Loans, possible changes
in tax laws and other opportunities for investment. See "Risk Factors" and
"Description of the Mortgage Asset Pool" herein and "Risk Factors" and "Yield
and Maturity Considerations--Yield and Prepayment Considerations" in the
Prospectus.
The rate of prepayment on the Mortgage Asset Pool is likely to be affected
by prevailing market interest rates for mortgage loans of a comparable type,
term and risk level. When the prevailing market interest rate is below a
mortgage coupon, a borrower may have an increased incentive to refinance its
mortgage loan. If a Mortgage Loan is not in a lock-out period, the Prepayment
Premium, if any, in respect of such Mortgage Loan may not be sufficient economic
disincentive to prevent the related borrower from voluntarily prepaying the loan
as part of a refinancing thereof. See "Description of the Mortgage Asset
Pool--Certain Terms and Conditions of the Mortgage Loans" herein.
DELAY IN PAYMENT OF DISTRIBUTIONS. Because monthly distributions will not
be made to Certificateholders until a date that is scheduled to be at least 15
days following the end of related Interest Accrual Period, the effective yield
to the holders of the Offered Certificates will be lower than the yield that
would otherwise be produced by the applicable Pass-Through Rates and purchase
prices (assuming such prices did not account for such delay).
UNPAID DISTRIBUTABLE CERTIFICATE INTEREST. As described under "Description
of the Certificates-- Distributions--Application of the Available Distribution
Amount" herein, if the portion of the Available Distribution Amount
distributable in respect of interest on any Class of Offered Certificates on any
Distribution Date is less than the Distributable Certificate Interest then
payable for such Class, the shortfall will be distributable to holders of such
Class of Certificates on subsequent Distribution Dates, to the extent of
available funds. Any such shortfall will not bear interest, however, and will
therefore negatively affect the yield to maturity of such Class of Certificates
for so long as it is outstanding.
WEIGHTED AVERAGE LIFE
The weighted average life of a Principal Balance Certificate refers to the
average amount of time that will elapse from the date of its issuance until each
dollar allocable to principal of such Certificate is distributed to the
investor. For purposes of this Prospectus Supplement, the weighted average life
of a Principal Balance Certificate is determined by (i) multiplying the amount
of each principal distribution thereon by the number of years from the Delivery
Date to the related Distribution Date, (ii) summing the results and (iii)
dividing the sum by the aggregate amount of the reductions in the principal
balance of such Certificate. Accordingly, the weighted average life of any such
Certificate will be influenced by, among other things, the rate at which
principal of the Mortgage Loans is paid or otherwise collected or advanced and
the extent to which such payments, collections and/or advances of principal are
in turn
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applied in reduction of the Certificate Balance of the Class of Certificates to
which such Certificate belongs.
Prepayments on mortgage loans may be measured by a prepayment standard or
model. The model used in this Prospectus Supplement is the Constant Prepayment
Rate ("CPR") model. The CPR Model assumes that a group of mortgage loans
experiences prepayments each month at a specified constant annual rate. As used
in each of the following sets of tables with respect to any particular Class,
the column headed "0%" assumes that none of the Mortgage Loans is prepaid before
maturity (or the Anticipated Repayment Date, in the case of an ARD Loan). The
columns headed "5%," "10%," "15%," "20%," and "25%" assume, that no prepayments
are made on any Mortgage Loan during such Mortgage Loan's prepayment lock-out or
defeasance period, if any, or during such Mortgage Loan's yield maintenance
period, if any, and are otherwise made on each of the Mortgage Loans at the
indicated CPR percentages. There is no assurance, however, that prepayments of
the Mortgage Loans (whether or not in a prepayment lock-out period or a yield
maintenance period) will conform to any particular CPR percentages, and no
representation is made that the Mortgage Loans will prepay in accordance with
the assumptions at any of the CPR percentages shown or at any other particular
prepayment rate, that all the Mortgage Loans will prepay in accordance with the
assumptions at the same rate or that Mortgage Loans that are in a prepayment
lock-out period or a yield maintenance period will not prepay as a result of
involuntary liquidations upon default or otherwise. A "prepayment lock-out
period" is any period during which the terms of the Mortgage Loan prohibit
voluntary prepayments on the part of the borrower. A "defeasance period" is any
period during which the borrower may, under the terms of the Mortgage Loan,
exercise a Defeasance Option. A "yield maintenance period" is any period during
which the terms of the Mortgage Loan provide that voluntary prepayments be
accompanied by a Prepayment Premium calculated on the basis of a yield
maintenance formula.
The following tables indicate the percentage of the initial Certificate
Balance of each Class of Offered Certificates (other than the Class X
Certificates) that would be outstanding after each of the dates shown at the
indicated CPR percentages and the corresponding weighted average life of each
such Class of Certificates. The tables have been prepared on the basis of the
information set forth on Annex A and the following assumptions (collectively,
the "Maturity Assumptions"): (i) the initial Certificate Balance or Notional
Amount, as the case may be, and Pass-Through Rate for each Class of Certificates
are as set forth herein, (ii) the scheduled Monthly Payments for each Mortgage
Loan are based on such Mortgage Loan's Cut-off Date Balance, stated monthly
principal and interest payments (as such may be increased in the case of nine
(9) Mortgage Loans (as described in Annex A) and the Mortgage Rate in effect as
of the Cut-off Date for such Mortgage Loan, (iii) all scheduled Monthly Payments
are assumed to be timely received on the first day of each month, (iv) there are
no delinquencies or losses in respect of the Mortgage Loans, there are no
extensions of maturity in respect of the Mortgage Loans, there are no Appraisal
Reduction Amounts with respect to the Mortgage Loans and there are no casualties
or condemnations affecting the Mortgaged Properties, (v) prepayments are made on
each of the Mortgage Loans at the indicated CPR percentages set forth in the
table (without regard to any limitations in such Mortgage Loans on partial
voluntary principal prepayments) (except to the extent modified below by the
assumption numbered (xii)) and that the ARD Loans mature on their repective
Anticipated Repayment Date and Loan Number GMAC3030, as set forth on Annex A, is
called at the earliest date permitted under the Mortgage Loan documents, (vi)
all Mortgage Loans accrue interest under the method as specified in Annex A,
(vii) neither the Servicer nor the Depositor exercises its right of optional
termination described herein, (viii) no Mortgage Loan is required to be
repurchased by a Mortgage Loan Seller, (ix) no Prepayment Interest Shortfalls
are incurred and no Prepayment Premiums are collected, (x) there are no
Additional Trust Fund Expenses, (xi) distributions on the Certificates are made
on the 15th day of each month, commencing in September 1998, (xii) no
prepayments are received as to any Mortgage Loan during such Mortgage Loan's
prepayment lock-out period or defeasance period ("LOP"), if any, or yield
maintenance period ("YMP"), if any, (xiii) the prepayment provisions for each
Mortgage Loan as set forth on Annex A are assumed to begin on the first due date
of such Mortgage Loan, and (xiv) the Delivery
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Date is August , 1998. To the extent that the Mortgage Loans have
characteristics or experience performance that differs from those assumed in
preparing the tables set forth below, the Class A-1, Class A-2, Class B, Class
C, Class D and Class E Certificates may mature earlier or later than indicated
by the tables. It is highly unlikely that the Mortgage Loans will prepay or
perform in accordance with the Maturity Assumptions at any constant rate until
maturity or that all the Mortgage Loans will prepay in accordance with the
Maturity Assumptions or at the same rate. In particular, certain of the Mortgage
Loans may not permit voluntary partial prepayments. In addition, variations in
the actual prepayment experience and the balance of the specific Mortgage Loans
that prepay may increase or decrease the percentages of initial Certificate
Balances (and weighted average lives) shown in the following tables. Such
variations may occur even if the average prepayment experience of the Mortgage
Loans were to equal any of the specified CPR percentages. In addition, there can
be no assurance that the actual pre-tax yields on, or any other payment
characteristics of, any Class of Offered Certificates will correspond to any of
the information shown in the yield tables herein, or that the aggregate purchase
prices of the Offered Certificates will be as assumed. Accordingly, investors
must make their own decisions as to the appropriate assumptions (including
prepayment assumptions) to be used in deciding whether to purchase the Offered
Certificates.
Investors are urged to conduct their own analyses of the rates at which the
Mortgage Loans may be expected to prepay.
Based on the Maturity Assumptions, the following tables indicate the
resulting weighted average lives of the Class A-1, Class A-2, Class B, Class C,
Class D and Class E Certificates and set forth the percentage of the initial
Certificate Balance of each such Class of Certificates that would be outstanding
after each of the dates shown under the applicable assumptions at the indicated
CPR percentages.
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS A-1 CERTIFICATES
OUTSTANDING AT THE SPECIFIED CPR PERCENTAGES
<TABLE>
<CAPTION>
PREPAYMENTS LOCKED OUT THROUGH
LOP AND YMP, THEN AT THE FOLLOWING CPRS
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DATE 0% 5% 10% 15% 20% 25%
- --------------------------------------- --------- --------- --------- --------- --------- ---------
Initial................................ 100% 100% 100% 100% 100% 100%
Weighted Average
Life (in years)......................
</TABLE>
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PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS A-2 CERTIFICATES
OUTSTANDING AT THE SPECIFIED CPR PERCENTAGES
<TABLE>
<CAPTION>
PREPAYMENTS LOCKED OUT THROUGH
LOP AND YMP, THEN AT THE FOLLOWING CPRS
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DATE 0% 5% 10% 15% 20% 25%
- --------------------------------------- --------- --------- --------- --------- --------- ---------
Initial................................ 100% 100% 100% 100% 100% 100%
Weighted Average
Life (in years)......................
</TABLE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS B CERTIFICATES
OUTSTANDING AT THE SPECIFIED CPR PERCENTAGES
<TABLE>
<CAPTION>
PREPAYMENTS LOCKED OUT THROUGH
LOP AND YMP, THEN AT THE FOLLOWING CPRS
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DATE 0% 5% 10% 15% 20% 25%
- --------------------------------------- --------- --------- --------- --------- --------- ---------
Initial................................ 100% 100% 100% 100% 100% 100%
Weighted Average
Life (in years)......................
</TABLE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS C CERTIFICATES
OUTSTANDING AT THE SPECIFIED CPR PERCENTAGES
<TABLE>
<CAPTION>
PREPAYMENTS LOCKED OUT THROUGH
LOP AND YMP, THEN AT THE FOLLOWING CPRS
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DATE 0% 5% 10% 15% 20% 25%
- --------------------------------------- --------- --------- --------- --------- --------- ---------
Initial................................ 100% 100% 100% 100% 100% 100%
Weighted Average
Life (in years)......................
</TABLE>
S-88
<PAGE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS D CERTIFICATES
OUTSTANDING AT THE SPECIFIED CPR PERCENTAGES
<TABLE>
<CAPTION>
PREPAYMENTS LOCKED OUT THROUGH
LOP AND YMP, THEN AT THE FOLLOWING CPRS
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DATE 0% 5% 10% 15% 20% 25%
- --------------------------------------- --------- --------- --------- --------- --------- ---------
Initial................................ 100% 100% 100% 100% 100% 100%
Weighted Average
Life (in years)......................
</TABLE>
PERCENTAGES OF THE INITIAL CERTIFICATE BALANCE OF THE CLASS E CERTIFICATES
OUTSTANDING AT THE SPECIFIED CPR PERCENTAGES
<TABLE>
<CAPTION>
PREPAYMENTS LOCKED OUT THROUGH
LOP AND YMP, THEN AT THE FOLLOWING CPRS
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DATE 0% 5% 10% 15% 20% 25%
- --------------------------------------- --------- --------- --------- --------- --------- ---------
Initial................................ 100% 100% 100% 100% 100% 100%
Weighted Average
Life (in years)......................
</TABLE>
S-89
<PAGE>
CERTAIN PRICE/YIELD TABLES
The tables set forth below show the corporate bond equivalent ("CBE") yield
and weighted average life in years with respect to each Class of Offered
Certificates (other than the Class X Certificates) under the Maturity
Assumptions.
The yields set forth in the following tables were calculated by determining
the monthly discount rates which, when applied to the assumed stream of cash
flows to be paid on each Class of Offered Certificates (other than the Class X
Certificates), would cause the discounted present value of such assumed stream
of cash flows as of , 1998 to equal the assumed purchase prices, plus
accrued interest at the applicable Pass-Through Rate as stated on the cover
hereof from and including the Cut-off Date for each Mortgage Loan to but
excluding the Delivery Date, and converting such monthly rates to semi-annual
corporate bond equivalent rates. Such calculation does not take into account
variations that may occur in the interest rates at which investors may be able
to reinvest funds received by them as reductions of the Certificate Balances of
such Classes of Offered Certificates and consequently does not purport to
reflect the return on any investment in such Classes of Offered Certificates
when such reinvestment rates are considered. Purchase prices are expressed in
32nds and interpreted as a percentage of the initial Certificate Balance of the
specified Class (i.e., 99-16 means 99 16/32%) and are exclusive of accrued
interest.
PRE-TAX YIELD TO MATURITY (CBE)
FOR THE CLASS A-1 CERTIFICATES AT THE SPECIFIED CPR PERCENTAGES
<TABLE>
<CAPTION>
PREPAYMENTS LOCKED OUT THROUGH LOP AND
YMP, THEN AT THE FOLLOWING CPRS
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSUMED PURCHASE PRICE*(32NDS) 0% 5% 10% 15% 20% 25%
-- --
--- --- --- ---
</TABLE>
- ------------------------
* Exclusive of accrued interest.
PRE-TAX YIELD TO MATURITY (CBE)
FOR THE CLASS A-2 CERTIFICATES AT THE SPECIFIED CPR PERCENTAGES
<TABLE>
<CAPTION>
PREPAYMENTS LOCKED OUT THROUGH LOP AND
YMP, THEN AT THE FOLLOWING CPRS
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSUMED PURCHASE PRICE*(32NDS) 0% 5% 10% 15% 20% 25%
-- --
--- --- --- ---
</TABLE>
- ------------------------
* Exclusive of accrued interest.
PRE-TAX YIELD TO MATURITY (CBE)
FOR THE CLASS B CERTIFICATES AT THE SPECIFIED CPR PERCENTAGES
<TABLE>
<CAPTION>
PREPAYMENTS LOCKED OUT THROUGH LOP AND
YMP, THEN AT THE FOLLOWING CPRS
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSUMED PURCHASE PRICE*(32NDS) 0% 5% 10% 15% 20% 25%
-- --
--- --- --- ---
</TABLE>
- ------------------------
* Exclusive of accrued interest.
S-90
<PAGE>
PRE-TAX YIELD TO MATURITY (CBE)
FOR THE CLASS C CERTIFICATES AT THE SPECIFIED CPR PERCENTAGES
<TABLE>
<CAPTION>
PREPAYMENTS LOCKED OUT THROUGH LOP AND
YMP, THEN AT THE FOLLOWING CPRS
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSUMED PURCHASE PRICE*(32NDS) 0% 5% 10% 15% 20% 25%
-- --
--- --- --- ---
</TABLE>
- ------------------------
* Exclusive of accrued interest.
PRE-TAX YIELD TO MATURITY (CBE)
FOR THE CLASS D CERTIFICATES AT THE SPECIFIED CPR PERCENTAGES
<TABLE>
<CAPTION>
PREPAYMENTS LOCKED OUT THROUGH LOP AND
YMP, THEN AT THE FOLLOWING CPRS
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSUMED PURCHASE PRICE*(32NDS) 0% 5% 10% 15% 20% 25%
-- --
--- --- --- ---
</TABLE>
- ------------------------
* Exclusive of accrued interest.
PRE-TAX YIELD TO MATURITY (CBE)
FOR THE CLASS E CERTIFICATES AT THE SPECIFIED CPR PERCENTAGES
<TABLE>
<CAPTION>
PREPAYMENTS LOCKED OUT THROUGH LOP AND
YMP, THEN AT THE FOLLOWING CPRS
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSUMED PURCHASE PRICE*(32NDS) 0% 5% 10% 15% 20% 25%
</TABLE>
- ------------------------
* Exclusive of accrued interest.
YIELD SENSITIVITY OF THE CLASS X CERTIFICATES
The yield to maturity of the Class X Certificates will be especially
sensitive to the prepayment, repurchase and default experience on the Mortgage
Loans, which prepayment, repurchase and default experience may fluctuate
significantly from time to time. A rapid rate of principal payments will have a
material negative effect on the yield to maturity of the Class X Certificates.
There can be no assurance that the Mortgage Loans will prepay at any particular
rate. In addition, the Pass-Through Rate for any Class X Component relating to a
Class of Principal Balance Certificates having a Pass-Through Rate equal to the
Weighted Average Net Mortgage Rate will be zero. Prospective investors in the
Class X Certificates should fully consider the associated risks, including the
risk that such investors may not fully recover their initial investment.
The following tables indicate the sensitivity of the pre-tax yield to
maturity on the Class X Certificates to various CPR percentages on the Mortgage
Loans by projecting the monthly aggregate payments of interest on the Class X
Certificates and computing the corresponding pre-tax yields to maturity on a
corporate bond equivalent basis, based on the Maturity Assumptions. It was
further assumed that the
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<PAGE>
aggregate purchase price of the Class X Certificates are as specified below, in
each case expressed in 32nds and interpreted as a percentage (i.e., 2-04 is 2
4/32%) of the initial Notional Amount (without accrued interest). Any
differences between such assumptions and the actual characteristics and
performance of the Mortgage Loans and of the Class X Certificates may result in
yields being different from those shown in such table. Discrepancies between
assumed and actual characteristics and performance underscore the hypothetical
nature of the table, which is provided only to give a general sense of the
sensitivity of yields in varying prepayment scenarios.
The pre-tax yields set forth in the following tables were calculated by
determining the monthly discount rates that, when applied to the assumed streams
of cash flows to be paid on the Class X Certificates, would cause the discounted
present value of such assumed stream of cash flows as of , 1998 to equal
the assumed aggregate purchase price plus accrued interest at the initial Pass-
Through Rate for the Class X Certificates from and including the Cut-off Date
for each Mortgage Loan to but excluding the Delivery Date, and by converting
such monthly rates to semi-annual corporate bond equivalent rates. Such
calculation does not take into account shortfalls in the collection of interest
due to prepayments (or other liquidations) of the Mortgage Loans or the interest
rates at which investors may be able to reinvest funds received by them as
distributions on the Class X Certificates (and accordingly does not purport to
reflect the return on any investment in the Class X Certificates when such
reinvestment rates are considered).
Notwithstanding the assumed prepayment rates reflected in the following
table, it is highly unlikely that the Mortgage Loans will be prepaid according
to one particular pattern. For this reason, and because the timing of cash flows
is critical to determining yields, the pre-tax yield to maturity on the Class X
Certificates is likely to differ from those shown in the following table, even
if all of the Mortgage Loans prepay at the indicated CPR percentages over any
given time period or over the entire life of the Certificates.
There can be no assurance that the Mortgage Loans will prepay in accordance
with the Maturity Assumptions at any particular rate or that the yield on the
Class X Certificates will conform to the yields described herein. Investors are
urged to make their investment decisions based on the determinations as to
anticipated rates of prepayment under a variety of scenarios. Investors in the
Class X Certificates should fully consider the risk that a rapid rate of
prepayments on the Mortgage Loans could result in the failure of such investors
to fully recover their investments.
In addition, holders of the Class X Certificates generally have rights to
relatively larger portions of interest payments on Mortgage Loans with higher
Mortgage Rates; thus, the yield on the Class X Certificates will be materially
and adversely affected if the Mortgage Loans with higher Mortgage Rates prepay
faster than the Mortgage Loans with lower Mortgage Rates.
PRE-TAX YIELD TO MATURITY (CBE)
FOR THE CLASS X CERTIFICATES AT THE SPECIFIED CPR PERCENTAGES
<TABLE>
<CAPTION>
PREPAYMENTS LOCKED OUT THROUGH LOP AND
YMP, THEN AT THE FOLLOWING CPRS
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSUMED PURCHASE PRICE (32NDS)* 0% 5% 10% 15% 20% 25%
--
--- --- --- --- ---
</TABLE>
- ------------------------
* Exclusive of accrued interest.
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<PAGE>
CERTAIN FEDERAL INCOME TAX CONSEQUENCES
GENERAL
Upon the issuance of the Offered Certificates, Mayer, Brown & Platt, counsel
to the Depositor, will deliver its opinion generally to the effect that,
assuming compliance with all provisions of the Pooling and Servicing Agreement,
for Federal income tax purposes, REMIC I, REMIC II and REMIC III will each
qualify as a REMIC under the Code. For Federal income tax purposes, the Class
R-I Certificates will be the sole class of "residual interests" in REMIC I; the
Class R-II Certificates will be the sole class of "residual interests" in REMIC
II; except for the portion evidencing the right to Excess Interest the
Certificates (other than the REMIC Residual Certificates will evidence the
"regular interests" in, and will be treated as debt instruments of, REMIC III;
and the Class R-III Certificates will be the sole class of "residual interests"
in REMIC III. See "Certain Federal Income Tax Consequences--REMICs" in the
Prospectus.
ORIGINAL ISSUE DISCOUNT AND PREMIUM
The Class X and Class Certificates will be treated as having been
issued with original issue discount for Federal income tax reporting purposes.
The prepayment assumption that will be used in determining the rate of accrual
of original issue discount, market discount and premium, if any, for Federal
income tax purposes will be based on the assumption that the Mortgage Loans will
not prepay prior to their respective maturity dates except that it is assumed
that the ARD Loans will pay their respective outstanding principal balances on
their related Anticipated Repayment Dates. No representation is made as to the
actual expected rate of prepayment of any Mortgage Loan. See "Certain Federal
Income Tax Consequences--REMICs--Taxation of Owners of REMIC Regular
Certificates--Original Issue Discount" in the Prospectus. The Offered
Certificates will also evidence undivided beneficial interests in the portion of
the Trust Fund consisting of any Excess Interest collected on the ARD Loans.
Such portion of the Trust Fund consisting of such Excess Interest will
constitute a grantor trust for Federal income tax purposes.
The IRS has issued OID Regulations under Sections 1271 to 1275 of the Code
generally addressing the treatment of debt instruments issued with original
issue discount. Purchasers of the Offered Certificates should be aware that the
OID Regulations and Section 1272(a)(6) of the Code do not adequately address
certain issues relevant to, or are not applicable to, prepayable securities such
as the Offered Certificates. In addition, there is considerable uncertainty
concerning the application of Section 1272(a)(6) of the Code and the OID
Regulations to REMIC Certificates that provide for payments based on an
adjustable rate, such as the Class X and Class Certificates. There are
uncertainties concerning the application of Section 1272(a)(6) of the Code to
the Class X and Class Certificates, and the rules of the OID Regulations
relating to debt instruments having an adjustable rate of interest are limited
in their application in ways that could preclude their application to the Class
X and Class Certificates even in the absence of Section 1272(a)(6) of the
Code. The IRS could assert that income derived from a Class X Certificate should
be calculated as if the Class X Certificate were a Certificate purchased at a
premium equal to the price paid by the Holder for the Class X Certificate. Under
this approach, a Holder would be entitled to amortize such premium only if it
has in effect an election under Section 171 of the Code with respect to all
taxable debt instruments held by such Holder, as described in the Prospectus
under "Certain Federal Income Tax Consequences--REMICs--Taxation of Owners of
REMIC Regular Certificates--Premium." Alternatively, the IRS could assert that
the Class X Certificates should be taxable under regulations governing debt
instruments having one or more contingent payments. Prospective purchasers of
the Offered Certificates are advised to consult their tax advisors concerning
the tax treatment of such Certificates.
Assuming the Class X Certificates are treated as having been issued with
original issue discount, it appears that a reasonable method of reporting
original issue discount with respect to the Class X Certificates generally would
be to report all income with respect to such Certificates as original issue
discount for each period, computing such original issue discount (i) by assuming
that the value of the
S-93
<PAGE>
applicable index will remain constant for purposes of determining the original
yield to maturity of, and projecting future distributions on, such Certificates,
thereby treating such Certificates as fixed rate instruments to which the
original issue discount computation rules described in the Prospectus can be
applied, and (ii) by accounting for any positive or negative variation in the
actual value of the applicable index in any period from its assumed value as a
current adjustment to original issue discount with respect to such period. See
"Certain Federal Income Tax Consequences--REMICs--Taxation of Owners of REMIC
Regular Certificates--Original Issue Discount" in the Prospectus.
If the method for computing original issue discount described in the
Prospectus results in a negative amount for any period with respect to a holder
of a Class X or Class Certificate, the amount of original issue discount
allocable to such period would be zero and such Certificateholder will be
permitted to offset such negative amount only against future original issue
discount (if any) attributable to such Certificate. Although the matter is not
free from doubt, a holder of a Class X or Class Certificate may be
permitted to deduct a loss to the extent that his or her respective remaining
basis in such Certificate exceeds the maximum amount of future payments to which
such Certificateholder is entitled, assuming no further prepayments of the
Mortgage Loans. Any such loss might be treated as a capital loss.
The OID Regulations in some circumstances permit the holder of a debt
instrument to recognize original issue discount under a method that differs from
that of the issuer. Accordingly, it is possible that holders of Class X or Class
Certificates may be able to select a method for recognizing original issue
discount that differs from that used by the Trustee in preparing reports to
Certificateholders and the IRS. Prospective purchasers of Class X and Class
Certificates are advised to consult their tax advisors concerning the
treatment of such Certificates.
Prepayment Premiums actually collected on the Mortgage Loans will be
distributed to the holders of each Class of Certificates entitled thereto as
described herein. It is not entirely clear under the Code when the amount of a
Prepayment Premium should be taxed to the holder of a Class of Certificates
entitled to a Prepayment Premium. For Federal income tax reporting purposes,
Prepayment Premiums will be treated as income to the holders of a Class of
Certificates entitled to Prepayment Premiums only after the Servicer's actual
receipt of a Prepayment Premium as to which such Class of Certificates is
entitled under the terms of the Pooling and Servicing Agreement. It appears that
Prepayment Premiums are to be treated as ordinary income rather than capital
gain. However, the correct characterization of such income is not entirely clear
and Certificateholders should consult their tax advisors concerning the
treatment of Prepayment Premiums.
Certain Classes of Certificates may be treated for Federal income tax
purposes as having been issued at a premium. Whether any holder of any such
Class of Certificates will be treated as holding a Certificate with amortizable
bond premium will depend on such Certificateholder's purchase price and the
distributions remaining to be made on such Certificate at the time of its
acquisition by such Certificateholder. Holders of each such Class of
Certificates should consult their tax advisors regarding the possibility of
making an election to amortize such premium. See "Certain Federal Income Tax
Consequences--REMICs--Taxation of Owners of REMIC Regular Certificates--Premium"
in the Prospectus.
NEW WITHHOLDING REGULATIONS
The Treasury Department has issued new regulations (the "New Regulations")
which make certain modifications to the withholding, backup withholding, and
information reporting rules described in the Prospectus. The New Regulations
attempt to unify certification requirements and to modify reliance standards.
The New Regulations will be generally effective for payments made after December
31, 1999. Prospective investors are urged to consult their tax advisors
regarding the New Regulations.
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<PAGE>
CHARACTERIZATION OF INVESTMENTS IN OFFERED CERTIFICATES
Certificateholders' interests in Excess Interest will be treated as
"stripped coupons" under Section 1286 of the Code. Because Excess Interest will
arise on the ARD Loans only if (contrary to the prepayment assumption utilized
in determining the rate of accrual of original issue discount, as described
above) they do not prepay on their related Anticipated Repayment Dates, for
Federal income tax information reporting purposes it will initially be assumed
that no such Excess Interest will be paid. Consequently, Excess Interest will
not be reported as income in Federal income tax information reports sent to
holders of the Offered and Class F and Class G Certificates until such Excess
Interest actually accrues. Similarly, no portion of such holders' purchase price
of their Certificates will be treated as allocable to their right to receive
possible distributions of Excess Interest. However, the Internal Revenue Service
might conceivably disagree with this treatment and assert that additional income
should be accrued with respect to projected possible payments of Excess Interest
in advance of its actual accrual, that additional original issue discount income
should be accrued with respect to the Offered and Class F and Class G
Certificates, or both. Certificateholders should consult with their tax advisors
regarding the overall tax effect of Excess Interest.
The Offered Certificates will be "real estate assets" within the meaning of
Section 856(c)(4)(A) of the Code generally in the same proportion that the
assets of the Trust Fund would be so treated. In addition, interest (including
original issue discount, if any) on the Offered Certificates will be interest
described in Section 856(c)(3)(B) of the Code generally to the extent that such
Certificates are treated as "real estate assets" within the meaning of Section
856(c)(4)(A) of the Code. Moreover, the Offered Certificates will be "qualified
mortgages" under Section 860G(a)(3) of the Code if transferred to another REMIC
on its start-up day in exchange for regular or residual interests therein.
The Offered Certificates will be treated as assets within the meaning of
Section 7701(a)(19)(C) of the Code generally only to the extent of the portion
of the Mortgage Loans secured by multifamily Mortgaged Properties. See
"Description of the Mortgage Asset Pool" herein and "Certain Federal Income Tax
Consequences--REMICs" in the Prospectus.
For further information regarding the Federal income tax consequences of
investing in the Offered Certificates, see "Certain Federal Income Tax
Consequences--REMICs" in the Prospectus.
METHOD OF DISTRIBUTION
Subject to the terms and conditions set forth in an Underwriting Agreement,
dated August, 1998 (the "Underwriting Agreement"), the Underwriters have agreed
to purchase and the Depositor has agreed to sell to the Underwriters the Offered
Certificates.
It is expected that delivery of the Offered Certificates will be made only
in book-entry form through the Same Day Funds Settlement System of DTC, Cedel
Bank, societe anonyme and the Euroclear System on or about August , 1998,
against payment therefor in immediately available funds.
In the Underwriting Agreement, the Underwriters have agreed to purchase the
portion of the Certificates of each Class set forth below.
ALLOCATION TABLE
<TABLE>
<CAPTION>
UNDERWRITER CLASS CLASS CLASS CLASS CLASS
- --------------------------------------------------------- ------------- ----------- ----------- ------------- -------------
<S> <C> <C> <C> <C> <C>
X A-1 A-2 B C
Lehman Brothers Inc......................................
Deutsche Bank Securities Inc.............................
Total
<CAPTION>
UNDERWRITER CLASS CLASS
- --------------------------------------------------------- ------------- -------------
<S> <C> <C>
D E
Lehman Brothers Inc......................................
Deutsche Bank Securities Inc.............................
Total
</TABLE>
In the Underwriting Agreement, the Underwriters have agreed, subject to the
terms and conditions set forth therein, to purchase all of the Offered
Certificates if any are purchased. In the event of default by
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<PAGE>
any Underwriter, the Underwriting Agreement provides that, in certain
circumstances, the purchase commitment of the nondefaulting Underwriter may be
increased or the underwriting may be terminated.
The Underwriting Agreement provides that the obligation of each Underwriter
to pay for and accept delivery of its Certificates is subject to, among other
things, the receipt of certain legal opinions and to the conditions, among
others, that no stop order suspending the effectiveness of the Depositor's
Registration Statement shall be in effect, and that no proceedings for such
purpose shall be pending before or threatened by the Securities and Exchange
Commission.
The distribution of the Offered Certificates by any Underwriter may be
effected from time to time in one or more negotiated transactions, or otherwise,
at varying prices to be determined at the time of sale. Proceeds to the
Depositor from the sale of the Offered Certificates, before deducting expenses
payable by the Depositor, will be approximately % of the aggregate
Certificate Balance of the Offered Certificates, plus accrued interest. Each
Underwriter may effect such transactions by selling its Certificates to or
through dealers, and such dealers may receive compensation in the form of
underwriting discounts, concessions or commissions from the Underwriter for whom
they act as agent. In connection with the sale of the Offered Certificates, each
Underwriter may be deemed to have received compensation from the Depositor in
the form of underwriting compensation. Each Underwriter and any dealers that
participate with such Underwriter in the distribution of the Offered
Certificates may be deemed to be underwriters and any profit on the resale of
the Offered Certificates positioned by them may be deemed to be underwriting
discounts and commissions under the Securities Act of 1933, as amended.
Lehman Brothers Inc. is an affiliate of the Lehman Seller.
The Underwriting Agreement provides that the Depositor will indemnify the
Underwriters, and that under limited circumstances the Underwriters will
indemnify the Depositor, against certain civil liabilities under the Securities
Act of 1933, as amended, or contribute to payments to be made in respect
thereof.
There can be no assurance that a secondary market for the Offered
Certificates will develop or, if it does develop, that it will continue. The
primary source of ongoing information available to investors concerning the
Offered Certificates will be the Trustee Reports discussed herein under
"Description of the Certificates--Reports to Certificateholders; Certain
Available Information." Except as described herein under "Description of the
Certificates--Reports to Certificateholders; Certain Available Information,"
there can be no assurance that any additional information regarding the Offered
Certificates will be available through any other source. In addition, the
Depositor is not aware of any source through which price information about the
Offered Certificates will be generally available on an ongoing basis. The
limited nature of such information regarding the Offered Certificates may
adversely affect the liquidity of the Offered Certificates, even if a secondary
market for the Offered Certificates becomes available.
LEGAL MATTERS
Certain legal matters will be passed upon for the Depositor by Mayer, Brown
& Platt and for the Underwriters by Brown & Wood LLP.
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<PAGE>
RATINGS
It is a condition to their issuance that the respective Classes of Offered
Certificates receive the indicated credit ratings from the Rating Agencies:
<TABLE>
<CAPTION>
CLASS EXPECTED RATINGS
- --------------------------------------------------------------------------- -----------------
<S> <C>
Class X.................................................................... AAA
Class A-1.................................................................. AAA
Class A-2.................................................................. AAA
Class B.................................................................... AA
Class C.................................................................... A
Class D.................................................................... BBB
Class E.................................................................... BBB-
</TABLE>
The ratings of the Offered Certificates address the likelihood of the timely
receipt by holders thereof of all payments of interest to which they are
entitled on each Distribution Date and the ultimate receipt by holders thereof
of all payments of principal to which they are entitled, if any, by the
Distribution Date in (the "Rated Final Distribution Date"). The
ratings take into consideration the credit quality of the Mortgage Asset Pool,
structural and legal aspects associated with the Certificates, and the extent to
which the payment stream from the Mortgage Asset Pool is adequate to make
payments of principal and interest required under the Offered Certificates. The
ratings of the Offered Certificates do not, however, represent any assessments
of (i) the likelihood or frequency of principal prepayments (whether voluntary
or involuntary) on the Mortgage Loans, (ii) the degree to which such prepayments
might differ from those originally anticipated, (iii) whether and to what extent
Prepayment Premiums will be collected in connection with such prepayments or the
corresponding effect on yield to investors or (iv) whether and to what extent
Excess Interest will be collected on any ARD Loan. In general, the ratings thus
address credit risk and not prepayment risk.
As described herein, the amounts payable with respect to the Class X
Certificates do not include principal. If all the Mortgage Loans were to prepay
in the initial month, with the result that the Class X Certificates were to
receive only a single month's interest (without regard to any Prepayment
Premiums that may be collected), and thus suffer a nearly complete loss of their
investment, all amounts "due" to such Certificateholders will nevertheless have
been paid, and such result is consistent with the ratings assigned by the Rating
Agencies to the Class X Certificates. The ratings of the Class X Certificates by
the Rating Agencies do not address the timing or magnitude of reductions of the
Notional Amount of the Class X Certificates, but only the obligation to pay
interest timely on the Notional Amount of the Class X Certificates, as such may
be reduced from time to time as described herein. Such ratings do not represent
any assessment of the yield to maturity of the Class X Certificates or the
possibility that the Class X Certificateholders might not fully recover their
investment in the event of rapid prepayments of the Mortgage Loans (including
both voluntary and involuntary prepayments). The Notional Amount upon which
interest is calculated in respect of the Class X Certificates is reduced by the
allocation of Realized Losses and prepayments, whether voluntary or involuntary.
The rating does not address the timing or magnitude of reductions of such
Notional Amount, but only the obligation to pay interest timely on such Notional
Amount as so reduced from time to time. Accordingly, the ratings of the Class X
Certificates should be evaluated independently from similar ratings on other
types of securities.
There can be no assurance as to whether any rating agency not requested to
rate the Offered Certificates will nonetheless issue a rating to any Class
thereof and, if so, what such rating would be. A rating assigned to any Class of
Offered Certificates by a rating agency that has not been requested by the
Depositor to do so may be lower than the ratings assigned thereto by the Rating
Agencies.
The ratings on the Offered Certificates should be evaluated independently
from similar ratings on other types of securities. A security rating is not a
recommendation to buy, sell or hold securities and may be subject to revision or
withdrawal at any time by the assigning rating agency.
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<PAGE>
LEGAL INVESTMENT
Any Offered Certificates rated in the category of "AAA" or "AA" (or the
equivalent) by at least one Rating Agency will constitute "mortgage related
securities" for the purposes of SMMEA. All other Offered Certificates (the
"Non-SMMEA Certificates") will not constitute "mortgage related securities" for
purposes of SMMEA. As a result, the appropriate characterization of the
Non-SMMEA Certificates under various legal investment restrictions, and thus the
ability of investors subject to these restrictions to purchase the Non-SMMEA
Certificates of any Class, may be subject to significant interpretative
uncertainties. In addition, institutions whose investment activities are subject
to review by federal or state regulatory authorities may be or may become
subject to restrictions in certain forms of mortgage related securities. The
Depositor makes no representation as to the ability of particular investors to
purchase the Offered Certificates under applicable legal investment or other
restrictions. All institutions whose investment activities are subject to legal
investment laws and regulations, regulatory capital requirements or review by
regulatory authorities should consult with their legal advisors in determining
whether and to what extent the Offered Certificates constitute legal investments
for them or are subject to investment capital or other restrictions. See "Legal
Investment" in the Prospectus.
ERISA CONSIDERATIONS
A fiduciary of any employee benefit plan or other retirement plan or
arrangement, including individual retirement accounts and annuities, Keogh plans
and collective investment funds and separate accounts (and, as applicable,
insurance company general accounts) in which such plans, accounts or
arrangements are invested, that is subject to ERISA and/or Section 4975 of the
Code (each, a "Plan") should review with its counsel whether the purchase or
holding of Offered Certificates could give rise to a transaction that is
prohibited or is not otherwise permitted either under ERISA or Section 4975 of
the Code or whether there exists any statutory or administrative exemption
applicable thereto.
The purchase or holding of the Class A and Class X Certificates by, on
behalf of or with assets of a Plan may qualify for exemptive relief under the
Exemption, as described under "ERISA Considerations-- Prohibited Transaction
Exemption" in the Prospectus and similar exemptions granted to each of the
Underwriters (See Prohibited Transaction Exemption 91-14, 56 Fed. Reg. 7413
(1991) and D-10433 (unpublished)).; however, the Exemption contains a number of
conditions, including the requirement that any such Plan must be an "accredited
investor" as defined in Rule 501(a)(1) of Regulation D of the Securities and
Exchange Commission under the Securities Act of 1933, as amended. In addition,
neither the Exemption nor any similar exemption issued to the Underwriters will
apply to the Class B, Class C, Class D or Class E Certificates. As a result,
each purchaser of a Class B, Class C, Class D or Class E Certificate or any
interest therein will be deemed to have represented by such purchase that
either: (a) such purchaser is not a Plan and is not purchasing such Certificates
by or on behalf of, or with assets of, any Plan or (b) the purchase of any such
Certificate by or on behalf of, or with assets of, any Plan is permissible under
applicable law, will not result in any non-exempt prohibited transaction under
ERISA or Section 4975 of the Code, and will not subject the Depositor, the
Trustee, the Fiscal Agent or the Servicer to any obligation in addition to those
undertaken in the Pooling and Servicing Agreement, and the following conditions
are met: (i) the source of funds used to purchase such Certificate is an
"insurance company general account" (as such term is defined in PTCE 95-60) and
(ii) the conditions set forth in Sections I and III of PTCE 95-60 have been
satisfied as of the date of the acquisition of such Certificates. See "ERISA
Considerations--Representation From Investing Plans" in the Prospectus.
Any Plan fiduciary or other person considering whether to purchase an
Offered Certificate on behalf of or with assets of a Plan should consult with
its counsel regarding the applicability of the fiduciary responsibility
provisions of ERISA and the prohibited transaction provisions of ERISA and
Section 4975 of the Code to such investment and the availability of the
Exemption or any other prohibited transaction exemption in connection therewith.
See "ERISA Considerations" in the Prospectus.
S-98
<PAGE>
INDEX OF PRINCIPAL TERMS
AAA.............................................................................
S-20
Accrued Certificate Interest....................................................
S-73
ADA.............................................................................
S-32
Additional Trust Fund Expenses..................................................
S-77
Advances........................................................................
S-61
Annual Debt Service.............................................................
A-2
Anticipated Repayment Date......................................................
S-12
Appraisal Reduction Amount......................................................
S-78
Appraised Value.................................................................
A-2
ARD Loans.......................................................................
S-12
ARD LTV.........................................................................
A-3,
Arden Borrower..................................................................
S-40
Arden Loan......................................................................
S-40
Arden Mortgage..................................................................
S-40
Arden Properties................................................................
S-40
Arden Realty....................................................................
S-40
ARI.............................................................................
S-40
Assumed Final Distribution Date.................................................
S-2
Assumed Monthly Payment.........................................................
S-74
Available Distribution Amount...................................................
S-71
Balloon Loans...................................................................
S-11
Balloon or ARD Balance..........................................................
A-3
Balloon Payment.................................................................
S-12
Balloon Payment Interest Excess.................................................
S-61
Balloon Payment Interest Shortfall..............................................
S-61
BMC.............................................................................
S-44
BOY.............................................................................
S-43
Boykin Borrower.................................................................
S-43
Boykin Loan.....................................................................
S-43
Boykin Lodging..................................................................
S-43
Boykin Mortgage.................................................................
S-43
Boykin Properties...............................................................
S-43
CBE.............................................................................
S-90
CEDEL...........................................................................
S-9
CEDEL Participants..............................................................
S-68
Certain Loan Payment Terms......................................................
A-1
Certificates....................................................................
Cover
Class...........................................................................
Cover
Class A Certificates............................................................
Cover
Class X Components..............................................................
S-70
Clearance Cooperative...........................................................
S-68
CLTV............................................................................
A-2
Collection Period...............................................................
S-71
Comparative Financial Status Report.............................................
S-80
Controlling Class...............................................................
S-59
Corporate Trust Office..........................................................
S-83
Corrected Mortgage Loan.........................................................
S-57
CPR.............................................................................
S-86
Credit Lease....................................................................
S-11
S-99
<PAGE>
Credit Lease Loans..............................................................
S-10
Cross-Collateralized Mortgage Loans.............................................
S-30
Cut-off Date Balance............................................................
S-33
Cut-off Date Loan-to-Value Ratio................................................
A-2
Cut-off Date LTV................................................................
A-2
Cut-off Date LTV Ratio..........................................................
S-7
Defeasance Collateral...........................................................
S-35
Defeasance Option...............................................................
S-13
Defeasance Period...............................................................
S-43
Deleted Mortgage Loan...........................................................
S-53
Delinquent Loan Status Report...................................................
S-79
Delivery Date...................................................................
Cover
Depositories....................................................................
S-67
Determination Date..............................................................
S-71
Deutsche........................................................................
Cover
Discount Rate...................................................................
S-75
Discount Rate Fraction..........................................................
S-75
Distributable Certificate Interest..............................................
S-73
Distribution Date...............................................................
S-8
Enhancement Insurer.............................................................
S-29
ERISA ConsiderationsRepresentation From Investing Plans.........................
S-98
Euroclear.......................................................................
S-9
Euroclear Operator..............................................................
S-68
Euroclear Participants..........................................................
S-68
Excess Interest.................................................................
S-12
Fiscal Agent....................................................................
S-83
Form 8-K........................................................................
S-56
GAAP............................................................................
A-1
GLA.............................................................................
S-46
Global Securities...............................................................
D-1
GMAC98C2.xls....................................................................
D-5
GMACCM..........................................................................
S-8
GMACCM Mortgage Loans...........................................................
S-33
Grove...........................................................................
S-48
Grove Borrowers.................................................................
S-48
Grove Loan......................................................................
S-48
Grove Mortgage..................................................................
S-48
Grove Properties................................................................
S-48
Guarantor.......................................................................
S-28
GVE.............................................................................
S-48
Historical Loan Modification Report.............................................
S-79
Historical Loss Estimate Report.................................................
S-80
Index of Principal Terms........................................................
S-8
Initial Pool Balance............................................................
S-2
Interest Reserve Account........................................................
S-75
Interest Reserve Loans..........................................................
S-76
Largest Tenant..................................................................
A-3
LaSalle.........................................................................
S-82
Lease Enhancement Policies......................................................
S-11
Lehman..........................................................................
Cover
Lehman Mortgage Loans...........................................................
S-33
S-100
<PAGE>
Lehman Seller...................................................................
S-8
Liquidation Fee.................................................................
S-60
Liquidation Fee Rate............................................................
S-60
Loan Payoff Notification Report.................................................
S-80
Loan-to-Value Ratio.............................................................
A-2
Lockbox Account.................................................................
S-34
LOP.............................................................................
S-86
MAC.............................................................................
S-45
Macerich........................................................................
S-45
MAI.............................................................................
S-51
Marketplace.....................................................................
S-45
Master Servicer.................................................................
S-58
Maturity Assumptions............................................................
S-86
Modified Mortgage Loan..........................................................
S-79
Money Rates.....................................................................
S-78
Monthly Payments................................................................
S-34
Monthly Rental Payments.........................................................
S-11
Mortgage Asset Pool.............................................................
S-2
Mortgage Asset Seller...........................................................
S-33
Mortgage Loan Purchase Agreement................................................
S-33
Mortgage Loan Sellers...........................................................
S-8
Mortgage Loans..................................................................
S-2
Mortgage Rate...................................................................
A-3
Net Aggregate Prepayment Interest Shortfall.....................................
S-73
Net Mortgage Rate...............................................................
S-70
New Regulations.................................................................
S-94
NOI Adjustment Worksheet........................................................
S-81
Non-SMMEA Certificates..........................................................
S-21
NRA.............................................................................
S-41
Occupancy as of Date............................................................
A-3
Occupancy Percentage............................................................
A-3
Offered Certificates............................................................
Cover
Operating Statement Analysis....................................................
S-80
OPERS...........................................................................
S-38
OPERS Borrower..................................................................
S-38
OPERS Loan......................................................................
S-38
OPERS Mortgages.................................................................
S-38
OPERS Properties................................................................
S-38
P&I Advance.....................................................................
S-17
Pass-Through Rate...............................................................
S-70
Permitted Encumbrances..........................................................
S-54
Phase I.........................................................................
S-22
Plan............................................................................
S-98
Pooling and Servicing Agreement.................................................
S-13
Prepayment Interest Excess......................................................
S-61
Prepayment Interest Shortfall...................................................
S-61
Prepayment Provisions...........................................................
A-3
Principal Allocation Fraction...................................................
S-75
Principal Balance Certificates..................................................
S-2
Principal Distribution Amount...................................................
S-73
Principal Window................................................................
S-6
S-101
<PAGE>
Purchase Price..................................................................
S-53
Qualifying Substitute Mortgage Loan.............................................
S-53
Rated Final Distribution Date...................................................
S-97
Rating Agencies.................................................................
S-20
Realized Loss...................................................................
S-77
Realized Losses.................................................................
S-76
Reimbursement Rate..............................................................
S-78
REIT............................................................................
S-40
Related Proceeds................................................................
S-61
Release Date....................................................................
S-35
REMIC Regular Certificates......................................................
Cover
REMIC Residual Certificates.....................................................
Cover
REO Account.....................................................................
S-64
REO Status Report...............................................................
S-80
REO Tax.........................................................................
S-64
Replacement Mortgage Loan.......................................................
S-53
Replacement Special Servicer....................................................
S-58
Required Appraisal Loan.........................................................
S-78
Revised Rate....................................................................
S-34
Risk Factors....................................................................
Cover
Rules...........................................................................
S-67
Scheduled Maturity Date LTV.....................................................
A-3
Senior Certificates.............................................................
Cover
Servicer Watch List.............................................................
S-80
Servicing Advances..............................................................
S-61
Servicing Fee...................................................................
S-59
Servicing Fee Rate..............................................................
S-60
Servicing Standard..............................................................
S-57
Shortfall Amount................................................................
S-40
SMMEA...........................................................................
S-21
South Towne.....................................................................
S-45
South Towne Borrower............................................................
S-45
South Towne Loan................................................................
S-45
South Towne Mortgage............................................................
S-45
South Towne Property............................................................
S-45
Special Servicer................................................................
S-58
Special Servicing Event.........................................................
S-57
Special Servicing Fee...........................................................
S-60
Specially Serviced Mortgage Loan................................................
S-57
SqFt............................................................................
A-3
Square Feet.....................................................................
A-3
Stated Principal Balance........................................................
S-70
Subordinate Certificates........................................................
Cover
Substitute Properties...........................................................
S-42
Substitute Property.............................................................
S-42
Substituted Property............................................................
S-42
Substitution Shortfall Amount...................................................
S-53
Tenant..........................................................................
S-11
Tenants.........................................................................
S-11
Term to Maturity................................................................
A-3
Terms and Conditions............................................................
S-68
S-102
<PAGE>
The Pooling and Servicing Agreements............................................
S-58
This Week.......................................................................
S-75
Trust Fund......................................................................
S-2
Trustee Reports.................................................................
S-79
U.S. Person.....................................................................
D-4
Underwriters....................................................................
Cover
Underwriting Agreement..........................................................
S-95
Underwritten NCF................................................................
A-1
Underwritten NCF DSCR...........................................................
S-7
Underwritten Net Cash Flow......................................................
A-1
Units...........................................................................
A-3
UW NCF..........................................................................
A-1
UW NCF DSCR.....................................................................
A-2
Voting Rights...................................................................
S-82
Washington/Oregon Hotels........................................................
S-45
Weighted Average Net Mortgage Rate..............................................
S-70
Westboy.........................................................................
S-43
Withheld Amounts................................................................
S-76
Workout Fee.....................................................................
S-60
Workout Fee Rate................................................................
S-60
Yield and Maturity Considerations...............................................
S-2
YM1%............................................................................
A-3
YMP.............................................................................
S-86
S-103
<PAGE>
ANNEX A-1
CERTAIN CHARACTERISTICS OF THE MORTGAGE LOANS
GENERAL
The schedule and tables appearing in this Annex A set forth certain
information with respect to the Mortgage Loans and Mortgaged Properties. Such
information is presented, where applicable, as of the Cut-off Date for each
Mortgage Loan and the related Mortaged Properties. The statistics in such
schedule and tables were derived, in many cases, from information and operating
statements furnished by or on behalf of the respective borrowers. Such
information and operating statements were generally unaudited and have not been
independently verified by the Depositor, the Mortgage Loan Sellers or the
Underwriters or any of their respective affiliates or any other person. The sum
of the amounts in any column of any of the tables of this Annex A may not equal
the indicated total under such column due to rounding.
Net income for a Mortgaged Property as determined in accordance with
generally accepted accounting principles ("GAAP") would not be the same as the
stated Underwritten Net Cash Flow for such Mortgaged Property as set forth in
the following schedule or tables. In addition, Underwritten Net Cash Flow is not
a substitute for or comparable to operating income as determined in accordance
with GAAP as a measure of the results of a property's operations or a substitute
for cash flows from operating activities determined in accordance with GAAP as a
measure of liquidity. No representation is made as to the future net cash flow
of the Mortgaged Properties, nor is the Underwritten Net Cash Flow set forth
herein with respect to any Mortgaged Property intended to represent such future
net cash flow.
In the schedule and tables set forth in this Annex A, with respect to
Mortgage Loans evidenced by one Mortgage Note, but secured by multiple Mortgaged
Properties, for certain purposes, separate amounts for each such related
Mortgaged Property are shown.
DEFINITIONS
For purposes of the Prospectus Supplement, including the schedule and tables
in this Annex A, the indicated terms shall have the following meanings, modified
accordingly, by reference to the "Certain Loan Payment Terms" below and
footnotes to the schedules that follow:
1. "Underwritten Net Cash Flow", "Underwritten NCF" or "UW NCF" with
respect to any Mortgaged Property, means an estimate of cash flow available for
debt service in a typical year of stable, normal operations. In general, it is
the estimated revenue derived from the use and operation of such Mortgaged
Property less the sum of estimated (a) operating expenses (such as utilities,
administrative expenses, repairs and maintenance, management and franchise fees
and advertising), (b) fixed expenses (such as insurance, real estate taxes and,
if applicable, ground lease payments), (c) with the exception of skilled
nursing, independent/assisted living/congregate care, hospital, multifamily and
hospitality properties, capital expenditures and reserves for capital
expenditures, including tenant improvement costs and leasing commissions, as
applicable, and (d) an allowance for vacancies and losses. Underwritten Net Cash
Flow generally does not reflect interest expense and non-cash items such as
depreciation and amortization.
In determining Underwritten Net Cash Flow for a Mortgaged Property, the
Mortgage Loan Sellers generally relied on rent rolls and/or other generally
unaudited financial information provided by the respective borrowers; in some
cases the appraisal and/or local market information was the primary basis for
the determination. From that information, the Mortgage Loan Sellers calculated
stabilized estimates of cash flow that took into consideration historical
financial statements (where available), material changes in the operating
position of a Mortgaged Property of which the applicable Mortgage Loan Seller
was aware (e.g., newly signed leases, expirations of "free rent" periods and
market rent and market
A-1-1
<PAGE>
vacancy data), and estimated capital expenditures, leasing commission and tenant
improvement reserves. In certain cases, the applicable Mortgage Loan Seller's
estimate of Underwritten Net Cash Flow reflected differences from the
information contained in the operating statements obtained from the respective
borrowers (resulting in either an increase or decrease in the estimate of
Underwritten Net Cash Flow derived therefrom) based upon the Mortgage Loan
Seller's own analysis of such operating statements and the assumptions applied
by the respective borrowers in preparing such statements and information. In
certain instances, for example, property management fees and other expenses may
have been taken into account in the calculation of Underwritten Net Cash Flow
even though such expense may not have been reflected in actual historic
operating statements. In most of those cases, the information was annualized,
with certain adjustments for items deemed not appropriate to be annualized,
before using it as a basis for the determination of Underwritten Net Cash Flow.
No assurance can be given with respect to the accuracy of the information
provided by any borrowers, or the adequacy of the procedures used by any
Mortgage Loan Seller in determining the presented operating information.
2. "Annual Debt Service" generally means, for any Mortgage Loan 12 times
the Monthly Payment in effect as of the Cut-off Date for such Mortgage Loan or,
for certain Mortgage Loans that pay interest only for a period of time, 12 times
the Monthly Payment in effect at the end of such period.
3. "UW NCF DSCR" or "Underwritten NCF DSCR" means, with respect to any
Mortgage Loan, (a) the Underwritten Net Cash Flow for the Mortgaged Property,
divided by (b) the Annual Debt Service for such Mortgage Loan.
In general, debt service coverage ratios are used by income property lenders
to measure the ratio of (a) cash currently generated by a property that is
available for debt service to (b) required debt service payments. However, debt
service coverage ratios only measure the current, or recent, ability of a
property to service mortgage debt. If a property does not possess a stable
operating expectancy (for instance, if it is subject to material leases that are
scheduled to expire during the loan term and that provide for above-market rents
and/or that may be difficult to replace), a debt service coverage ratio may not
be a reliable indicator of a property's ability to service the mortgage debt
over the entire remaining loan term. The Underwritten NCF DSCRs are presented
herein for illustrative purposes only and, as discussed above, are limited in
their usefulness in assessing the current, or predicting the future, ability of
a Mortgaged Property to generate sufficient cash flow to repay the related
Mortgage Loan. Accordingly, no assurance can be given, and no representation is
made, that the Underwritten NCF DSCRs accurately reflects that ability. With
respect to certain Mortgage Loans with respect to which earn-out reserves have
been established, UW NCF DSCR is shown assuming that such earn-out is not
achieved.
4. "Appraised Value" means, for any Mortgaged Property, the appraiser's
adjusted value as stated in the most recent third party appraisal or market
analysis, available to the Depositor (or in the case of two Mortgage Loans,
which represent 7.81% of the Initial Pool Balance, as determined by an internal
valuation by the related Mortgage Loan Seller. In certain cases, the appraiser's
adjusted value takes into account certain repairs or stabilization of
operations. In certain cases in which the appraiser assumed the completion of
repairs, such repairs were, in general, either completed prior to the Delivery
Date or the related Mortgage Loan Seller has taken reserves sufficient to
complete such repairs. No representation is made that any such value would
approximate either the value that would be determined in a current appraisal of
the related Mortgaged Property or the amount that would be realized upon a sale.
5. "Cut-off Date Loan-to-Value Ratio," "Loan-to-Value Ratio," "Cut-off Date
LTV" or "CLTV" means, with respect to any Mortgage Loan, (a) the Cut-off Date
Balance of such Mortgage Loan divided (b) by the Appraised Value of the
Mortgaged Property or Mortgaged Properties.With respect to certain Mortgage
Loans with respect to which earn-out reserves have been established, Cut-off
Date Loan-to-Value is shown assuming that such earn-out is not achieved.
A-1-2
<PAGE>
6. "Square Feet" or "SqFt." means, in the case of a Mortgaged Property
operated as a retail center, office or medical office complex,
industrial/warehouse facility, combination retail office facility or other
special purpose property, the square footage of the net rentable or leasable
area.
7. "Units" means: (i) in the case of a Mortgaged Property operated as
multifamily housing, the number of apartments, regardless of the size of or
number of rooms in such apartment; (ii) in the case of a Mortgaged Property
operated as a skilled nursing or congregate care facility, the number of beds;
(iii) in the case of a Mortgaged Property constituting a manufactured housing
property, the number of pads; and (iv) in the case of a Mortgaged Property
operated as a hospitality property, the number of guest rooms.
8 "Occupancy Percentage" means the percentage of Square Feet or Units, as
the case may be, of the Mortgaged Property that was occupied or leased or, in
the case of certain properties, average units so occupied over a specified
period, as of a specified date (identified on this Annex A as the "Occupancy as
of Date") or as specified by the borrower or as derived from the Mortgaged
Property's rent rolls or, with respect to certain skilled nursing, congregate
care and assisted living facilities, census reports, operating statements or
appraisals or as determined by a site inspection of the Mortgaged Property.
Information in this Annex A concerning the "Largest Tenant" is presented as of
the same date as of which the Occupancy Percentage is specified.
9 "Balloon or ARD Balance" means, with respect to any Balloon Loan or ARD
Loan, the principal amount that will be due at maturity or on the Anticipated
Repayment Date for such Balloon Loan or ARD Loan.
10. "Scheduled Maturity Date LTV" or "ARD LTV" means, with respect to any
Balloon Loan or ARD Loan, the Balloon or ARD Balance for such Mortgage Loan
divided by the Appraised Value of the related Mortgaged Property. With respect
to certain Mortgage Loans with respect to which earn-out reserves have been
established, "Scheduled Maturity Date LTV" and "ARD LTV" is shown assuming that
such earn-out is not achieved.
11. "Mortgage Rate" means, with respect to any Mortgage Loan, the Mortgage
Rate in effect as of the Cut-off Date for such Mortgage Loan.
12. "Servicing Fee" for each Mortgage Loan includes the compensation payable
in respect of the servicing of such Mortgage Loan (which includes the Master
Servicing Fee Rate) and the compensation payable to the Trustee.
13. "Prepayment Provisions" for each Mortgage Loan are: "L," which means the
duration of lockout period; "D," which means the duration of any defeasance
period; "YM1%," which means the greater of the applicable yield maintenance
charge and one percent of the amount being prepaid at such time; a stand alone
numeral means a flat percentage of the amount being prepaid. The number
following the "/" is the number of payment years for which the related call
protection provision is in effect, exclusive of the maturity date for
calculation purpose only.
14. "Term to Maturity" means, with respect to any Mortgage Loan, the
remaining term, in months, from the Cut-off Date for such Mortgage Loan to the
earlier of the related Maturity Date or Anticipated Repayment Date.
INTEREST ONLY LOANS
LOAN NUMBER GMAC2070. The Mortgage Loan requires Monthly Payments of
interest only in the amount of $31,542.50 from August 1, 1998 through July 1,
2000. Commencing on August 1, 2000 and through maturity, Monthly Payments of
principal and interest in the amount of $35,704.67 are required.
LOAN NUMBER GMAC2860. The Mortgage Loan requires Monthly Payments of
interest only in the amount of $272,625 from September 10, 1998 through the
earlier to occur of the completion of the
A-1-3
<PAGE>
retrofit period or April 9, 1999. Commencing after the interest only period and
through maturity, Monthly Payments of principal and interest in the amount of
$328,613.48 are required.
LOAN NUMBER GMAC3010. The Mortgage Loan requires Monthly Payments of
interest only (calculated using an Actual/360 interest accrual method) from
August 1, 1998 through July 1, 2003. Commencing on August 1, 2003 and through
maturity, Monthly Payments of principal and interest in the amount of $81,984.16
are required.
LOAN NUMBER GMAC3210. The Mortgage Loan requires Monthly Payments of
interest only in the amount of $191,016.67 from September 10, 1998 through
maturity.
LOAN NUMBER LG980424001. The Mortgage Loan requires Monthly Payments of
interest only in the amount of $775,045 from July 1, 1998 through April 1, 2003.
In years six to ten amortization is based on a 25 year schedule.
LOAN NUMBER LG980424003. The Mortgage Loan requires Monthly Payments of
interest only in the Amount of $345,975 from July 1, 1998 through June 1, 2008.
LOAN NUMBER LG97121503. The Mortgage Loan requires Monthly Payments of
interest only from August 1, 1998 and continuing through the payment due August
1, 2002. Beginning September 1, 2002, and continuing through August 1, 2007 (the
Maturity Date) the Monthly Payment shall increase to $52,918.72. The Annual Debt
Service and the Underwritten NCF DSCR reflect the amortizing monthly payments
which commence September 1, 2002.
LOAN NUMBER LG908424002. The Mortgage Loan requires Monthly Payments of
interest only from July 2, 1998 and continuing through May 2, 2000. Beginning
June 1, 2003; and continuing through June 2, 2008 (The Anticipated Repayment
Date). Both the Annual Debt Service and the Underwritten NCF DSCR reflect the
amortizing Monthly Payments which commence June 2, 2000.
LOAN NUMBER LG971103001. The Mortgage Loan requires Monthly Payments of
interest only from February 1, 1998 and continuing through payment due January
1, 2000. Beginning February 1, 2000 and continuing through January 1, 2008 (The
Maturity Date). The Monthly Payment shall increase to $33,626.29. Both the
Annual Debt Service and the Underwritten NCF DSCR reflect the amortizing Monthly
Payments which commence June 2, 2000.
STEP AMORTIZATION LOANS
LOAN NUMBER GMAC1250. The Mortgage Loan requires Monthly Payments due
beginning July 1, 1998 in the amount of $39,408.92 per month and continuing at
this level through July 1, 2003. Beginning July 1, 2003, Monthly Payments
increase to $42,408.74 through June 1, 2008. Beginning July 1, 2008, Payments
increase to $45,681.76 per month through June 1, 2013. Beginning July 1, 2013,
Monthly Payments increase to $49,252.26 per month through June 1, 2018. The
remaining balance is due on June 1, 2018.
LOAN NUMBER GMAC2140. The Mortgage Loan requires Monthly Payments due
beginning September 1, 1998 in the amount of $57,906.68 per month and continuing
at this level through January 1, 2002. Beginning February 1, 2002, Monthly
Payments increase to $69,939.41 through January 1, 2007. Beginning February 1,
2007, Monthly Payments increase to $84,139.27 per month through July 1, 2013.
The remaining balance is due on August 1, 2013.
LOAN NUMBER 980127004C. The Mortgage Loan requires Monthly Payments due
beginning August 1, 1998 in the amount of $8,484.75 per month through October 1,
2002. Beginning November 1, 2002 through October 1, 2007 the payment increases
to $9,757.01. Beginning November 1, 2007 through October 1, 2012 the Payment
increases to $11,223.57. Beginning November 1, 2012 through
A-1-4
<PAGE>
October 1, 2017 the Payment increases to $12,910.11. Beginning November 1, 2017
through June 1, 2021 the Payment increases to $14,849.63.
LOAN NUMBER 980204001. The Mortgage Loan requires Monthly Payments due
beginning September 1, 1998 in the amount of $43,704.92 per month through
November 1, 2012. Beginning December 1, 2012 through November 1, 2017 the
Payment increases to $53,600.34.
LOAN NUMBER 980212001. The Mortgage Loan requires Monthly Payments due
beginning July 1, 1998 in the amount of $19,299.60 per month through January 1,
2003. For February 2003 the payment is $19,358.07. Beginning March 1, 2003
through January 1, 2008 the Payment is $19,752.74. For February 1, 2008 the
Payment $19,811.27. Beginning March 1, 2008 through January 1, 2013 the Payment
is $20,206.38. For February 1, 2013 the Payment is $20,264.79. Beginning March
1, 2013 through February 1, 2018 the Payment is $20,659.02.
LOAN NUMBER 980602501. The Mortgage Loan requires Monthly Payments due
beginning August 1, 1998 in the amount of $9,138.58 per month through October 1,
2002. Beginning November 1, 2002, Payments increase to $10,509.47 through
October 1, 2007. Beginning November 1, 2007 Payments increase to $12,085.74
through October 1, 2012. Beginning November 1, 2012 through October 1, 2017
Payments increase to $13,925.39.
LOAN NUMBER 970924009. The Mortgage Loan requires Monthly Payments due
beginning July 1, 1998 in the amount of $26,168.00 per month through March 1,
2003. For April 1, 2003 the Payment is $26,463.35. Beginning May 1, 2003 through
March 1, 2008 the Payment increases to $27,476.00. For April 2008 the Payment is
$27,786.26. Beginning May 1, 2008 through March 1, 2013 the Payment increases to
$28,850.00. For April 1, 2013 the Payment is $29,175.84. Beginning May 1, 2013
through March 1, 2018 the Payment is $30,293.00.
LOAN NUMBER 971030017. The Mortgage Loan requires Monthly Payments due
beginning July 1, 1998 in the amount of $17,213.38 per month through April 1,
2003. Beginning May 1, 2003 through April 1, 2008 the Payment increases to
$18,074.05. Beginning May 1, 2008 through April 1, 2013 the Payment increases to
$18,977.76. Beginning May 1, 2013 through April 1, 2018 the Payment increases to
$19,926.64.
LOAN NUMBER 971201019. The Mortgage Loan requires Monthly Payments due
beginning August 1, 1998 in the amount of $10,769.42 through April 1, 2003.
Beginning May 1, 2003 the Payment increases to $12,065.53 through April 1, 2008.
Beginning May 1, 2008 through April 1, 2013 the Payment increases to $13,517.96.
CERTAIN RESERVES
LOAN NUMBERS GMAC2120, GMAC2960, GMAC2970, GMAC2980, GMAC2990, GMAC3020,
GMAC3200: The Mortgage Loans require that the borrower provide evidence that a
minimum of $250 per bed has been spent annually on capital expenditures.
LOAN NUMBERS GMAC1360, GMAC1380, GMAC2090-A, GMAC2090-C, GMAC2090-D,
GMAC2780, GMAC2840. The Mortgage Loans require that the borrower provide
evidence that a minimum of $300 per bed has been spent annually on capital
expenditures.
LOAN NUMBERS GMAC2090-B, GMAC2090-E: The Mortgage Loans require that the
Borrower provide evidence that a minimum of $350 per bed has been spent annually
on capital expenditures.
LOAN NUMBER GMAC2810. The Mortgage Loan requires that the borrower provide
evidence that a minimum of $450 per bed be spent annually on capital
expenditures.
A-1-5
<PAGE>
LOAN NUMBER GMAC1070. The Mortgage Loan requires monthly reserve payments
in the amount equal to one-twelfth (1/12th) of the greater of (i) four and
one-half percent (4.5%) of the gross operating income of the prior year.
LOAN NUMBER GMAC1160. The Mortgage Loan requires monthly reserve payments
in the amount equal to one-twelfth (1/12th) of the greater of (i) four and
one-half percent (4.5%) of the gross operating income of the prior year; or (ii)
the amount indicated in the structural engineering report as the amount of
annual capital expenditures necessary to maintain the property.
LOAN NUMBER GMAC1170. The Mortgage Loan requires monthly reserve payments
in the amount equal to one-twelfth (1/12th) of the greater of (i) four and
one-half percent (4.5%) of the gross operating income of the prior year; or (ii)
the amount indicated in the structural engineering report as the amount of
annual capital expenditures necessary to maintain the property.
LOAN NUMBER GMAC1440. The Mortgage Loan requires a deposit of $50,000 on
October 1, 1998 if tenant does not exercise lease renewal option on September
30, 1998. Deposit of $50,000 is due on October 1, 2003 if tenant does not
exercise second lease renewal option on September 30, 2003.
LOAN NUMBER GMAC1600. The Mortgage Loan requires a minimum of $200 per unit
be spent annually on capital expenditures commencing in the year 2000.
LOAN NUMBER GMAC1930. The Mortgage Loan requires monthly reserve payments
in the amount equal to one-twelfth (1/12th) of four percent (4.0%) of the gross
operating income of the prior year.
LOAN NUMBER GMAC2520. The Mortgage Loan requires Monthly reserve payments
in the amount equal to one-twelfth (1/12th) of the greater of (i) five percent
(5.0%) of the gross operating income of the prior year; or (ii) the amount of
annual expenditures indicated in a structural engineer's report, performed at
Lender's request, as the amount necessary to maintain the property.
EARN-OUT AND DEBT SERVICE RESERVE LOANS:
LOAN NUMBER GMAC1420. The Mortgage Loan requires $450,000 of the original
Loan Amount to be reserved in an occupancy reserve fund which is eligible to be
drawn in whole within one year of the origination of the Mortgage Loan. The
occupancy reserve fund will be used to partially prepay the Mortgage Loan to the
extent that the Mortgaged Property does not satisfy the draw requirements.
Prepayment penalties will apply. Based on the fully funded Loan Amount the
Cut-off Date LTV, Scheduled Maturity Date LTV and Underwritten NCF DSCR are:
CLTV 85.71 Scheduled Maturity Date LTV 73.99, UW NCF DSCR 1.39x
LOAN NUMBER GMAC1500: The Mortgage Loan requires $290,000 of the original
Loan Amount to be reserved in an occupancy reserve account which is eligible to
be drawn on or before December 26, 1998. The Occupancy Reserve account may be
used to partially prepay the Mortgage Loan to the extent that the Mortgaged
Property does not satisfy the draw requirements. Prepayment penalties will not
apply. Based on the fully funded Loan Amount the Cut-off-Date LTV, Scheduled
Maturity Date LTV and Underwritten NCF DSCR are: CLTV 63.6, Scheduled Maturity
Date LTV 58.43, UW NCF DSCR 1.26x
LOAN NUMBER GMAC1860. The Mortgage Loan requires $290,000 of the original
Loan Amount to be reserved in an earn-out reserve which is eligible to be drawn
before December 31, 1998. To the extent that the Mortgaged Property does not
satisfy the draw requirements, the earn-out reserve may be used to partially
prepay the Mortgage Loan, to fund leasing obligations, or for any repair or
replacement. Prepayment of the Mortgage Loan shall be deemed a partial
defeasance of the Mortgage Loan. Based on the fully funded Loan Amount the
Cut-off Date LTV, Scheduled Maturity Date LTV and Underwritten NCF DSCR are:
CLTV57.6, Scheduled Maturity Date LTV 52.94, and UW NCF DSCR 1.02
A-1-6
<PAGE>
LOAN NUMBER GMAC1890. The Mortgage Loan requires $300,000 of the original
Loan Amount to be reserved in an earn-out reserve which is eligible to be drawn
before June 30, 2000. To the extent that the Mortgaged Property does not satisfy
the draw requirements, the earn-out reserve may be used to partially prepay the
Mortgage Loan, to fund leasing obligations, or for any repair or replacement.
Prepayment of the Mortgage Loan shall be deemed a partial defeasance of the
Mortgage Loan. Based on the fully funded Loan Amount the Cut-off-Date LTV,
Scheduled Maturity Date LTV and Underwritten NCF DSCR are: CLTV81.48, Scheduled
Maturity Date LTV 74.76, and UW NCF DSCR 1.37
LOAN NUMBER GMAC1960. The Mortgage Loan requires $470,000 of the original
Loan Amount to be reserved in a rental achievement escrow which is eligible to
be drawn within one year of the origination of the Mortgage Loan. The rental
achievement escrow will be used to partially prepay the Mortgage Loan to the
extent that the Mortgaged Property does not satisfy the draw requirements.
Prepayment penalties will not apply. Based on the fully funded Loan Amount the
Cut-off Date LTV, Scheduled Maturity Date LTV and Underwritten NCF DSCR are:
CLTV82.93, Scheduled Maturity Date LTV 71.8, DSCR 1.24
LOAN NUMBER GMAC 2040. The Mortgage Loan requires $1,500,000 of the
original Loan Amount to be reserved in an earn-out escrow which is eligible to
be drawn before July 31, 1999. The earn-out escrow will be used to partially
defease the Mortgage Loan to the extent that the Mortgaged Property does not
satisfy the draw requirements. Based on the fully funded Loan Amount the Cut-off
Date LTV, Scheduled Maturity Date LTV and Underwritten NCF DSCR are: CLTV 86.54,
Scheduled Maturity Date LTV 70.41 UW NCF DSCR 1.27
LOAN NUMBER GMAC2070. The Mortgage Loan requires $1,050,000 of the original
Loan Amount to be reserved in a debt service reserve. The debt service will
remain in escrow until the Mortgaged Property satisfies the draw requirements.
Based on the fully funded Loan Amount the Cut-off Date LTV, Scheduled Maturity
Date LTV and Underwritten NCF DSCR are: CLTV 96.12, Scheduled Maturity Date LTV
79.75, and UW NCF DSCR 1.29.
LOAN NUMBER GMAC2200. The Mortgage Loan requires $500,000 of the original
Loan Amount to be reserved in earn-out reserve which is eligible to be drawn
before June 30, 2000. To the extent that the Mortgaged Property does not satisfy
the draw requirements, the earn-out reserve may be used to partially prepay the
Mortgage Loan, to fund leasing obligations, or for any repair or replacement.
Prepayment of the Mortgage Loan shall be deemed a partial defeasance of the
Mortgage Loan. Based on the fully funded Loan Amount the Cut-off Date LTV,
Scheduled Maturity Date LTV and Underwritten NCF DSCR are: CLTV 73.72, Scheduled
Maturity Date LTV 58.34, and UW NCF DSCR 1.18
LOAN NUMBER GMAC2470. The Mortgage Loan requires $205,000 of the original
Loan Amount to be reserved in an earn-out escrow which is eligible to be drawn
within one year of the organization of the Mortgaged Loan. The earn-out escrow
will be used to partially prepay the Mortgage Loan to the extent that the
Mortgaged Property does not satisfy the draw requirements. Prepayment penalties
will apply. Based on the fully funded Loan Amount the Cut-off Date LTV,
Scheduled Maturity Date LTV and Underwritten NCF DSCR are: CLTV 69.44, Scheduled
Maturity Date LTV 60.26, and UW NCF DSCR 1.63
LOAN NUMBER GMAC2790. The Mortgage Loan requires $1,540,000 of the original
Loan Amount to be reserved in a debt service reserve. The debt service reserve
will remain in escrow until the Mortgaged Property satisfies the draw
requirements. Based on the fully funded Loan Amount the Current LTV, Scheduled
Maturity Date LTV and Underwritten NCF DSCR are: CLTV 79.94, Scheduled Maturity
Date LTV 68.67, and UW NCF DSCR 1.22
LOAN NUMBER GMAC2870. The Mortgage Loan requires $225,000 of the original
Loan Amount to be reserved in an earn-out reserve which is eligible to be drawn
before June 30, 2000. To th extent that the Mortgaged Property does not satisfy
the draw requirements, the earn-out reserve may be used to
A-1-7
<PAGE>
partially prepay the Mortgage Loan, to fund leasing obligations, or for any
repair or replacement. Prepayment of the Mortgage Loan shall be deemed a partial
defeasance of the Mortgage Loane. Based on the fully funded Loan Amount the
Cut-off Date LTV, Scheduled Maturity Date LTV and Underwritten NCF DSCR are:
Cut-off Date LTV 61.00, Scheduled Maturity Date LTV 55.97, and UW NCF DSCR 1.91.
LOAN NUMBER GMAC3310. The Mortgage Loan requires $475,000 of the original
Loan Amount to be reserved in an earn-out escrow which is eligible to be drawn
beginning February 1, 1999. The earn-out escrow will be used to partially prepay
the Mortgage Loan to the extent that the Mortgaged Property does not satisfy the
draw requirements on or before August 1, 2000. Prepayment penalties will not
apply. Based on the fully funded Loan Amount the Cut-off Date LTV, Scheduled
Maturity Date LTV and Underwritten NCF DSCR are: CLTV 86.39, Scheduled Maturity
Date LTV 74.33, and UW NCF DSCR 1.20.
LOAN NUMBER GMAC3320. The Mortgage Loan requires $3,500,000 of the original
Loan Amount to be reserved in a debt service reserve. The debt service reserve
will remain in escrow until the Mortgaged Property satisfies the draw
requirements. Based on the fully funded Loan Amount the Current LTV, Scheduled
Maturity Date LTV and Underwritten NCF DSCR are: CLTV 86.39, Scheduled Maturity
Date LTV 74.33, and UW NCF DSCR 1.20.
A-1-8
<PAGE>
AMORTIZATION TYPES
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
% BY
AGGREGATE AGGREGATE AVERAGE HIGHEST
AMORTIZATION NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
TYPES LOANS BALANCE BALANCE BALANCE BALANCE
- ----------------------------------------- --------------- -------------- --------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Balloon.................................. 311 $1,494,675,764 58.3% $4,806,031 $ 46,463,602
ARD...................................... 46 843,730,026 32.9 18,341,957 199,846,047
Fully Amortizing......................... 51 225,542,915 8.8 4,422,410 45,000,000
--- -------------- ----- ------------ -------------
Total:................................... 408 $2,563,948,705 100.0% $6,284,188 $ 199,846,047
--- -------------- ----- ------------ -------------
--- -------------- ----- ------------ -------------
<CAPTION>
WTD. AVG.
WTD. AVG. CUT-OFF DATE WTD. AVG. WTD. AVG.
AMORTIZATION CUT-OFF DATE UWNCF OCCUPANCY MORTGAGE
TYPES LTV(1) DSCR(1) RATE(2) RATE
- ----------------------------------------- --------------- --------------- --------------- -------------
<S> <C> <C> <C> <C>
Balloon.................................. 72.1% 1.44x 95.2% 7.20%
ARD...................................... 56.4 2.03 96.6 6.79
Fully Amortizing......................... 60.8 1.46 97.8 7.50
--- --- --- ---
Total:................................... 66.0% 1.65x 95.8% 7.09%
--- --- --- ---
--- --- --- ---
</TABLE>
- ------------------------------
(1) The DSC Ratio and LTV information does not reflect the 29 Credit Lease Loans
representing 4.65% of the Aggregate Cut-off Date Balance.
(2) Occupancy Rates are calculated without reference to Hospitality properties.
A-1-9
<PAGE>
CUT-OFF DATE LTV RATIOS
(ALL MORTGAGE LOANS OTHER THAN CREDIT LEASE LOANS)
<TABLE>
<CAPTION>
% BY
AGGREGATE AGGREGATE AVERAGE HIGHEST
RANGE OF CUT-OFF DATE NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
LTV RATIOS (%) LOANS BALANCE BALANCE BALANCE BALANCE
- ----------------------------------------- --------------- -------------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
15.1 -20.0............................... 1 $ 596,451 0.0% $ 596,451 $ 596,451
25.1 -30.0............................... 2 3,529,000 0.1 1,764,500 1,839,056
30.1 -35.0............................... 1 2,484,451 0.1 2,484,451 2,484,451
35.1 -40.0............................... 3 12,026,389 0.5 4,008,796 7,492,092
40.1 -45.0............................... 2 4,717,268 0.2 2,358,634 3,450,000
45.1 -50.0............................... 8 387,884,259 15.9 48,485,532 199,846,047
50.1 -55.0............................... 10 220,586,307 9.0 22,058,631 136,100,000
55.1 -60.0............................... 17 116,366,593 4.8 6,845,094 30,000,000
60.1 -65.0............................... 30 271,481,129 11.1 9,049,371 64,000,000
65.1 -70.0............................... 58 251,382,034 10.3 4,334,173 28,470,701
70.1 -75.0............................... 139 596,389,351 24.4 4,290,571 46,463,602
75.1 -80.0............................... 97 496,231,687 20.3 5,115,791 45,200,000
80.1 -85.0............................... 9 46,292,935 1.9 5,143,659 12,487,350
85.1 -90.0............................... 2 34,792,722 1.4 17,396,361 24,642,722
--- -------------- ------------- ------------ -------------
Total/Avg./Wtd. Avg./Min./Max.:.......... 379 $2,444,760,576 100.0% $6,450,556 $ 199,846,047
--- -------------- ------------- ------------ -------------
--- -------------- ------------- ------------ -------------
Weighted Average: 65.97%
<CAPTION>
WTD. AVG. WTD. AVG. WTD. AVG. WTD. AVG.
RANGE OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
LTV RATIOS (%) LTV DSCR RATE RATE
- ----------------------------------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
15.1 -20.0............................... 15.3% 3.30x 93.0% 6.57%
25.1 -30.0............................... 27.4 1.87 98.5 6.57
30.1 -35.0............................... 34.0 2.07 96.9 7.20
35.1 -40.0............................... 39.4 2.21 100.0 7.41
40.1 -45.0............................... 43.8 1.39 98.1 7.80
45.1 -50.0............................... 47.9 2.30 96.4 6.71
50.1 -55.0............................... 52.0 1.94 96.5 6.97
55.1 -60.0............................... 58.1 1.68 97.0 6.93
60.1 -65.0............................... 62.6 1.81 94.6 6.86
65.1 -70.0............................... 67.5 1.49 95.0 7.19
70.1 -75.0............................... 73.4 1.39 95.3 7.33
75.1 -80.0............................... 78.8 1.34 95.7 7.13
80.1 -85.0............................... 81.2 1.36 93.3 7.35
85.1 -90.0............................... 86.1 1.38 95.3 7.48
--- --- ----- ---
Total/Avg./Wtd. Avg./Min./Max.:.......... 66.0% 1.65x 95.6% 7.07%
--- --- ----- ---
--- --- ----- ---
Weighted Average: 65.97%
</TABLE>
A-1-10
<PAGE>
ORIGINAL TERM TO MATURITY
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
% BY
RANGE OF CUT-OFF DATE AGGREGATE AGGREGATE AVERAGE HIGHEST
ORIGINAL TERMS TO NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
MATURITY (MONTHS) LOANS BALANCE BALANCE BALANCE BALANCE
- ----------------------------------------- --------------- -------------- --------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
49 -60................................... 4 $ 8,781,233 0.3% $2,195,308 $ 3,889,403
73 -96................................... 22 90,246,956 3.5 4,102,134 13,500,000
109 - 120................................ 275 1,895,357,197 73.9 6,892,208 199,846,047
121 - 132................................ 18 126,841,877 4.9 7,046,771 30,000,000
133 - 144................................ 7 26,194,010 1.0 3,742,001 6,587,099
145 - 156................................ 1 3,945,630 0.2 3,945,630 3,945,630
169 - 180................................ 28 137,634,484 5.4 4,915,517 20,958,730
181 - 192................................ 1 13,939,592 0.5 13,939,592 13,939,592
205 - 216................................ 2 13,142,403 0.5 6,571,201 10,445,688
217 - 228................................ 2 4,031,406 0.2 2,015,703 2,553,512
229 - 240................................ 27 96,092,081 3.7 3,558,966 12,969,890
253 - 276................................ 11 52,590,437 2.1 4,780,949 8,436,432
277 - 288................................ 1 4,624,417 0.2 4,624,417 4,624,417
289 - 300................................ 9 90,526,981 3.5 10,058,553 45,000,000
--- -------------- ------ ------------ -------------
Total/Avg./Wtd. Avg./Min./Max.:.......... 408 $2,563,948,705 100.0% $6,284,188 $ 199,846,047
--- -------------- ------ ------------ -------------
--- -------------- ------ ------------ -------------
Weighted Average: 137
<CAPTION>
RANGE OF CUT-OFF DATE WTD. AVG. WTD. AVG. WTD. AVG. WTD. AVG.
ORIGINAL TERMS TO CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
MATURITY (MONTHS) LTV(1) DSCR(1) RATE(2) RATE
- ----------------------------------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
49 -60................................... 68.9% 1.36x 99.3% 7.20%
73 -96................................... 72.1 1.36 96.2 7.45
109 - 120................................ 65.7 1.69 95.5 7.04
121 - 132................................ 63.1 1.77 97.2 6.57
133 - 144................................ 74.3 1.40 96.4 7.32
145 - 156................................ 64.7 1.57 100.0 7.00
169 - 180................................ 69.1 1.51 93.1 7.30
181 - 192................................ 59.1 1.38 0.0 7.72
205 - 216................................ 79.3 1.39 99.0 6.82
217 - 228................................ 0.0 0.00 100.0 7.21
229 - 240................................ 67.4 1.50 98.3 7.33
253 - 276................................ 76.8 1.27 100.0 7.92
277 - 288................................ 74.1 1.31 100.0 8.13
289 - 300................................ 61.2 1.42 95.7 7.32
--- --- ----- ---
Total/Avg./Wtd. Avg./Min./Max.:.......... 66.0% 1.65x 95.8% 7.09%
--- --- ----- ---
--- --- ----- ---
Weighted Average: 137
</TABLE>
- ------------------------
(1) The DSCR and LTV information does not reflect the 29 Credit Lease Loans
representing 4.65% of the Aggregate Cut-off Date Balance.
(2) Occupancy Rates are calculated without reference to Hospitality properties.
A-1-11
<PAGE>
REMAINING TERM TO MATURITY
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
% BY
RANGE OF AGGREGATE AGGREGATE AVERAGE HIGHEST
REMAINING TERMS TO NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
MATURITY (MONTHS) LOANS BALANCE BALANCE BALANCE BALANCE
- ----------------------------------------- --------------- -------------- --------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
= or less than39......................... 1 $ 1,042,405 0.0% $1,042,405 $ 1,042,405
40 -48................................... 1 4,678,878 0.2 4,678,878 4,678,878
49 -60................................... 4 8,781,233 0.3 2,195,308 3,889,403
73 -96................................... 20 84,525,673 3.3 4,226,284 13,500,000
97 - 108................................. 3 26,852,033 1.0 8,950,678 21,000,000
109 - 120................................ 272 1,868,505,164 72.9 6,869,504 199,846,047
121 - 132................................ 18 126,841,877 4.9 7,046,771 30,000,000
133 - 144................................ 7 26,194,010 1.0 3,742,001 6,587,099
145 - 156................................ 1 3,945,630 0.2 3,945,630 3,945,630
157 - 168................................ 1 2,148,532 0.1 2,148,532 2,148,532
169 - 180................................ 29 159,871,231 6.2 5,512,801 20,958,730
181 - 192................................ 1 2,930,302 0.1 2,930,302 2,930,302
205 - 216................................ 1 2,696,715 0.1 2,696,715 2,696,715
217 - 228................................ 3 7,309,075 0.3 2,436,358 3,277,670
229 - 240................................ 26 94,508,527 3.7 3,634,943 12,969,890
241 - 252................................ 9 47,608,639 1.9 5,289,849 8,436,432
253 - 276................................ 2 4,981,798 0.2 2,490,899 3,684,611
289 - 300................................ 9 90,526,981 3.5 10,058,553 45,000,000
--- -------------- ------ ------------ -------------
Total/Avg./Wtd. Avg./Min./Max.:.......... 408 $2,563,948,705 100.0% $6,284,188 $ 199,846,047
--- -------------- ------ ------------ -------------
--- -------------- ------ ------------ -------------
Weighted Average: 135
<CAPTION>
RANGE OF WTD. AVG. WTD. AVG. WTD. AVG. WTD. AVG.
REMAINING TERMS TO CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
MATURITY (MONTHS) LTV (1) DSCR (1) RATE (2) RATE
- ----------------------------------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
= or less than39......................... 37.4% 1.56x 100.0% 9.13%
40 -48................................... 67.8 1.22 89.6 8.56
49 -60................................... 68.9 1.36 99.3 7.20
73 -96................................... 72.7 1.37 96.5 7.37
97 - 108................................. 55.0 1.49 94.6 7.68
109 - 120................................ 65.9 1.69 95.6 7.03
121 - 132................................ 63.1 1.77 97.2 6.57
133 - 144................................ 74.3 1.40 96.4 7.32
145 - 156................................ 64.7 1.57 100.0 7.00
157 - 168................................ 47.5 2.00 84.0 9.04
169 - 180................................ 68.4 1.49 93.7 7.27
181 - 192................................ 65.1 1.16 100.0 9.75
205 - 216................................ 79.3 1.39 95.3 7.70
217 - 228................................ 0.0 0.00 100.0 7.20
229 - 240................................ 68.1 1.50 98.3 7.30
241 - 252................................ 0.0 0.00 100.0 7.96
253 - 276................................ 76.8 1.27 100.0 7.58
289 - 300................................ 61.2 1.42 95.7 7.32
--- --- ----- ---
Total/Avg./Wtd. Avg./Min./Max.:.......... 66.0% 1.65x 95.8% 7.09%
--- --- ----- ---
--- --- ----- ---
Weighted Average: 135
</TABLE>
- ------------------------
(1) The DSCR and LTV information does not reflect the 29 Credit Lease Loans
representing 4.65% of the Aggregate Cut-off Date Balance.
(2) Occupancy Rates are calculated without reference to Hospitality properties.
A-1-12
<PAGE>
MORTGAGE LOANS BY PROPERTY TYPE
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
% BY
AGGREGATE AGGREGATE AVERAGE HIGHEST
NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
PROPERTY TYPE LOANS BALANCE BALANCE BALANCE BALANCE
- ---------------------------------------- --------------- -------------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Multifamily............................. 132 $ 766,245,890 29.9% $ 5,804,893 $ 63,000,000
Retail.................................. 98 651,740,342 25.4 6,650,412 199,846,047
Office.................................. 67 287,606,735 11.2 4,292,638 21,000,000
Hospitality............................. 17 238,428,476 9.3 14,025,204 130,000,000
Health Care............................. 17 158,193,508 6.2 9,305,500 25,000,000
Office/Industrial....................... 1 136,100,000 5.3 136,100,000 136,100,000
CTL..................................... 29 119,188,129 4.6 4,109,935 10,445,688
Industrial/W'hse........................ 21 103,599,883 4.0 4,933,328 28,470,701
Self Storage............................ 23 49,941,304 1.9 2,171,361 4,345,790
Mixed Use............................... 1 46,463,602 1.8 46,463,602 46,463,602
Other................................... 2 6,440,836 0.3 3,220,418 3,450,000
--- -------------- ----- ------------- -------------
Total/Avg./Wtd. Avg.:................... 408 $2,563,948,705 100.0% $ 6,284,188 $ 199,846,047
--- -------------- ----- ------------- -------------
--- -------------- ----- ------------- -------------
<CAPTION>
WTD. AVG. WTD. AVG. WTD. AVG. WTD. AVG.
CUT-OFF DATE CUT-OFF DATE OCCUPANCY MORTGAGE
PROPERTY TYPE LTV(1) DSCR(1) RATE(2) RATE
- ---------------------------------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
Multifamily............................. 69.9% 1.55x 95.7% 6.90%
Retail.................................. 64.0 1.74 96.8 7.01
Office.................................. 69.1 1.44 95.4 7.28
Hospitality............................. 54.5 1.99 NAP 7.15
Health Care............................. 75.1 1.58 92.2 7.51
Office/Industrial....................... 51.4 2.19 97.3 6.74
CTL..................................... NAP NAP 100.0 7.43
Industrial/W'hse........................ 69.3 1.31 97.7 7.44
Self Storage............................ 69.4 1.46 88.6 7.40
Mixed Use............................... 71.4 1.35 86.0 7.33
Other................................... 48.1 1.40 100.0 7.70
--- --- ----- ---
Total/Avg./Wtd. Avg.:................... 66.0% 1.65x 95.8% 7.09%
--- --- ----- ---
--- --- ----- ---
</TABLE>
- ------------------------------
(1) The DSCR and LTV information does not reflect the 29 Credit Lease Loans
representing 4.65% of the Aggregate Cut-off Date Balance.
(2) Occupancy Rates are calculated without reference to Hospitality properties.
A-1-13
<PAGE>
CUT-OFF DATE BALANCES
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
% BY
AGGREGATE AGGREGATE AVERAGE
NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
RANGE OF CUT-OFF-DATE BALANCES($) LOANS BALANCE BALANCE BALANCE
- ----------------------------------------------------- --------------- --------------- --------------- -------------
<S> <C> <C> <C> <C>
0.01 - 2,000,000......................... 107 $ 151,979,867 5.9% $ 1,420,373
2,000,000.01 - 4,000,000......................... 155 442,889,540 17.3 2,857,352
4,000,000.01 - 6,000,000......................... 69 338,235,662 13.2 4,901,966
6,000,000.01 - 8,000,000......................... 24 168,028,461 6.6 7,001,186
8,000,000.01 - 10,000,000......................... 8 69,615,024 2.7 8,701,878
10,000,000.01 - 12,000,000......................... 7 74,998,049 2.9 10,714,007
12,000,000.01 - 14,000,000......................... 7 91,701,327 3.6 13,100,190
14,000,000.01 - 16,000,000......................... 6 88,848,279 3.5 14,808,046
16,000,000.01 - 18,000,000......................... 1 16,706,602 0.7 16,706,602
18,000,000.01 - 20,000,000......................... 4 74,482,590 2.9 18,620,648
20,000,000.01 - 22,000,000......................... 4 83,793,343 3.3 20,948,336
22,000,000.01 - 24,000,000......................... 1 23,023,619 0.9 23,023,619
24,000,000.01 - 26,000,000......................... 2 49,642,722 1.9 24,821,361
26,000,000.01 - 28,000,000......................... 1 26,950,989 1.1 26,950,989
28,000,000.01 - 30,000,000......................... 2 58,470,701 2.3 29,235,350
36,000,000.01 - 38,000,000......................... 1 36,500,000 1.4 36,500,000
38,000,000.01 - 40,000,000......................... 1 38,472,281 1.5 38,472,281
44,000,000.01 - 46,000,000......................... 2 90,200,000 3.5 45,100,000
46,000,000.01 - 48,000,000......................... 1 46,463,602 1.8 46,463,602
62,000,000.01 - 64,000,000......................... 2 127,000,000 5.0 63,500,000
128,000,000.01 - 130,000,000......................... 1 130,000,000 5.1 130,000,000
136,000,000.01 - 138,000,000......................... 1 136,100,000 5.3 136,100,000
198,000,000.01 - 200,000,000......................... 1 199,846,047 7.8 199,846,047
--- --------------- ------ -------------
Total/Avg./Wtd. Avg.:................................ 408 $ 2,563,948,705 100.0% $ 6,284,188
--- --------------- ------ -------------
--- --------------- ------ -------------
<CAPTION>
WTD. AVG.
HIGHEST WTD. AVG. CUT-OFF DATE WTD. AVG.
CUT-OFF DATE CUT-OFF DATE DSCR OCCUPANCY
RANGE OF CUT-OFF-DATE BALANCES($) BALANCE LTV(1) RATIO(1) RATE(2)
- ----------------------------------------------------- ------------- ----------------- ----------------- ---------------
<S> <C>
0.01 - 2,000,000......................... $ 1,996,070 70.0% 1.44x 95.3%
2,000,000.01 - 4,000,000......................... 4,000,000 70.7 1.44 96.3
4,000,000.01 - 6,000,000......................... 5,996,902 71.8 1.41 96.2
6,000,000.01 - 8,000,000......................... 7,983,940 71.8 1.42 95.9
8,000,000.01 - 10,000,000......................... 9,261,079 73.7 1.35 96.6
10,000,000.01 - 12,000,000......................... 11,650,000 73.8 1.38 96.5
12,000,000.01 - 14,000,000......................... 13,939,592 71.8 1.50 94.6
14,000,000.01 - 16,000,000......................... 15,790,536 71.6 1.56 95.9
16,000,000.01 - 18,000,000......................... 16,706,602 74.3 1.40 92.8
18,000,000.01 - 20,000,000......................... 19,000,000 71.4 1.53 90.9
20,000,000.01 - 22,000,000......................... 21,465,000 67.1 1.41 96.9
22,000,000.01 - 24,000,000......................... 23,023,619 74.6 1.31 95.0
24,000,000.01 - 26,000,000......................... 25,000,000 80.2 1.58 93.8
26,000,000.01 - 28,000,000......................... 26,950,989 55.6 1.87 NAP
28,000,000.01 - 30,000,000......................... 30,000,000 64.7 1.54 97.7
36,000,000.01 - 38,000,000......................... 36,500,000 48.2 2.48 97.0
38,000,000.01 - 40,000,000......................... 38,472,281 79.7 1.25 96.0
44,000,000.01 - 46,000,000......................... 45,200,000 66.5 1.40 97.0
46,000,000.01 - 48,000,000......................... 46,463,602 71.4 1.35 86.0
62,000,000.01 - 64,000,000......................... 64,000,000 61.8 2.08 96.2
128,000,000.01 - 130,000,000......................... 130,000,000 47.0 2.30 NAP
136,000,000.01 - 138,000,000......................... 136,100,000 51.4 2.19 97.3
198,000,000.01 - 200,000,000......................... 199,846,047 48.6 2.31 96.3
------------- ----- ----- -----
Total/Avg./Wtd. Avg.:................................ $ 199,846,047 66.0% 1.65x 95.8%
------------- ----- ----- -----
------------- ----- ----- -----
<CAPTION>
WTD. AVG.
MORTGAGE
RANGE OF CUT-OFF-DATE BALANCES($) RATE
- ----------------------------------------------------- -------------
0.01 - 2,000,000......................... 7.31%
2,000,000.01 - 4,000,000......................... 7.33
4,000,000.01 - 6,000,000......................... 7.30
6,000,000.01 - 8,000,000......................... 7.35
8,000,000.01 - 10,000,000......................... 7.50
10,000,000.01 - 12,000,000......................... 7.04
12,000,000.01 - 14,000,000......................... 7.29
14,000,000.01 - 16,000,000......................... 7.10
16,000,000.01 - 18,000,000......................... 7.48
18,000,000.01 - 20,000,000......................... 6.86
20,000,000.01 - 22,000,000......................... 7.16
22,000,000.01 - 24,000,000......................... 6.91
24,000,000.01 - 26,000,000......................... 7.33
26,000,000.01 - 28,000,000......................... 6.66
28,000,000.01 - 30,000,000......................... 6.85
36,000,000.01 - 38,000,000......................... 6.28
38,000,000.01 - 40,000,000......................... 6.86
44,000,000.01 - 46,000,000......................... 6.94
46,000,000.01 - 48,000,000......................... 7.33
62,000,000.01 - 64,000,000......................... 6.60
128,000,000.01 - 130,000,000......................... 6.90
136,000,000.01 - 138,000,000......................... 6.74
198,000,000.01 - 200,000,000......................... 6.59
-----
Total/Avg./Wtd. Avg.:................................ 7.09%
-----
-----
</TABLE>
- ----------------------------------
(1) The DSCR and LTV information does not reflect the 29 Credit Lease Loans
respresenting 4.65% of the Aggregate Cut-off Date Balance.
(2) Occupancy Rates are calculated without Reference to Hospitality Properties.
A-1-14
<PAGE>
CUT-OFF DATE DSC RATIO
(ALL MORTGAGE LOANS OTHER THAN CREDIT LEASE LOANS)
<TABLE>
<CAPTION>
% BY
AGGREGATE AGGREGATE AVERAGE
NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
RANGE OF CUT-OFF-DATE BALANCES($) LOANS BALANCE BALANCE BALANCE
- ----------------------------------------------------- --------------- --------------- --------------- -------------
<S> <C> <C> <C> <C>
1.05 - 1.09.......................................... 1 $ 1,200,000 0.0% $ 1,200,000
1.10 - 1.14.......................................... 1 10,489,374 0.4 10,489,374
1.15 - 1.19.......................................... 6 40,269,038 1.6 6,711,506
1.20 - 1.24.......................................... 14 103,492,845 4.2 7,392,346
1.25 - 1.29.......................................... 64 316,078,815 12.9 4,938,731
1.30 - 1.34.......................................... 69 266,337,769 10.9 3,859,968
1.35 - 1.39.......................................... 51 234,194,895 9.6 4,592,057
1.40 - 1.44.......................................... 40 168,432,921 6.9 4,210,823
1.45 - 1.49.......................................... 28 119,852,858 4.9 4,280,459
1.50 - 1.54.......................................... 16 123,798,949 5.1 7,737,434
1.55 - 1.59.......................................... 23 97,167,384 4.0 4,224,669
1.60 - 1.64.......................................... 14 48,148,268 2.0 3,439,162
1.65 - 1.69.......................................... 8 52,307,777 2.1 6,538,472
1.70 - 1.74.......................................... 8 32,607,361 1.3 4,075,920
1.75 - 1.79.......................................... 6 41,749,248 1.7 6,958,208
1.80 - 1.84.......................................... 5 46,260,006 1.9 9,252,001
1.85 - 1.89.......................................... 6 56,079,989 2.3 9,346,665
1.90 - 1.94.......................................... 4 29,385,814 1.2 7,346,453
1.95 - 1.99.......................................... 1 3,000,000 0.1 3,000,000
2.00 - 2.04.......................................... 1 2,148,532 0.1 2,148,532
2.05 - 2.09.......................................... 3 73,317,917 3.0 24,439,306
2.10 - 2.14.......................................... 2 68,985,657 2.8 34,492,828
2.15 - 2.19.......................................... 1 136,100,000 5.6 136,100,000
2.20 - 2.29.......................................... 2 2,920,772 0.1 1,460,386
2.30 - 2.44.......................................... 2 329,846,047 13.5 164,923,023
2.45 - 3.19.......................................... 1 36,500,000 1.5 36,500,000
3.20 - 3.29.......................................... 1 3,491,891 0.1 3,491,891
3.30................................................. 1 596,451 0.0 596,451
--- --------------- ------ -------------
Total/Avg./Wtd. Avg.:................................ 379 $ 2,444,760,576 100.0% $ 6,450,556
--- --------------- ------ -------------
--- --------------- ------ -------------
NZWA: 1.65...........................................
<CAPTION>
WTD. AVG.
HIGHEST WTD. AVG. CUT-OFF DATE WTD. AVG.
CUT-OFF DATE CUT-OFF DATE DSCR OCCUPANCY
RANGE OF CUT-OFF-DATE BALANCES($) BALANCE LTV RATIO RATE(1)
- ----------------------------------------------------- ------------- ----------------- ----------------- ---------------
<S> <C>
1.05 - 1.09.......................................... $ 1,200,000 60.0% 1.06x 84.0%
1.10 - 1.14.......................................... 10,489,374 80.7 1.12 88.0
1.15 - 1.19.......................................... 20,369,613 78.8 1.17 96.4
1.20 - 1.24.......................................... 28,470,701 74.8 1.22 94.3
1.25 - 1.29.......................................... 45,200,000 76.2 1.27 96.1
1.30 - 1.34.......................................... 23,023,619 73.9 1.32 96.4
1.35 - 1.39.......................................... 46,463,602 72.5 1.36 94.6
1.40 - 1.44.......................................... 21,465,000 71.3 1.41 97.0
1.45 - 1.49.......................................... 24,642,722 75.3 1.47 94.5
1.50 - 1.54.......................................... 45,000,000 60.8 1.52 94.1
1.55 - 1.59.......................................... 18,900,000 68.2 1.57 90.9
1.60 - 1.64.......................................... 13,751,332 70.7 1.63 91.6
1.65 - 1.69.......................................... 25,000,000 74.3 1.67 95.2
1.70 - 1.74.......................................... 12,969,890 63.2 1.72 95.2
1.75 - 1.79.......................................... 14,385,965 62.4 1.77 92.5
1.80 - 1.84.......................................... 30,000,000 56.0 1.84 98.9
1.85 - 1.89.......................................... 26,950,989 58.2 1.86 97.7
1.90 - 1.94.......................................... 19,000,000 60.8 1.93 97.6
1.95 - 1.99.......................................... 3,000,000 62.5 1.99 100.0
2.00 - 2.04.......................................... 2,148,532 47.5 2.00 84.0
2.05 - 2.09.......................................... 64,000,000 62.0 2.05 95.4
2.10 - 2.14.......................................... 63,000,000 60.9 2.11 96.1
2.15 - 2.19.......................................... 136,100,000 51.4 2.19 97.3
2.20 - 2.29.......................................... 1,525,000 53.8 2.24 89.6
2.30 - 2.44.......................................... 199,846,047 48.0 2.31 96.3
2.45 - 3.19.......................................... 36,500,000 48.2 2.48 97.0
3.20 - 3.29.......................................... 3,491,891 38.8 3.20 100.0
3.30................................................. 596,451 15.3 3.30 93.0
------------- ----- ----- ------
Total/Avg./Wtd. Avg.:................................ $ 199,846,047 66.0% 1.65x 95.6%
------------- ----- ----- ------
------------- ----- ----- ------
NZWA: 1.65...........................................
<CAPTION>
WTD. AVG.
MORTGAGE
RANGE OF CUT-OFF-DATE BALANCES($) RATE
- ----------------------------------------------------- -------------
1.05 - 1.09.......................................... 6.35%
1.10 - 1.14.......................................... 7.46
1.15 - 1.19.......................................... 7.39
1.20 - 1.24.......................................... 7.37
1.25 - 1.29.......................................... 7.15
1.30 - 1.34.......................................... 7.23
1.35 - 1.39.......................................... 7.30
1.40 - 1.44.......................................... 7.23
1.45 - 1.49.......................................... 7.55
1.50 - 1.54.......................................... 7.27
1.55 - 1.59.......................................... 7.29
1.60 - 1.64.......................................... 7.41
1.65 - 1.69.......................................... 7.20
1.70 - 1.74.......................................... 6.84
1.75 - 1.79.......................................... 7.14
1.80 - 1.84.......................................... 6.68
1.85 - 1.89.......................................... 6.51
1.90 - 1.94.......................................... 6.49
1.95 - 1.99.......................................... 6.35
2.00 - 2.04.......................................... 9.04
2.05 - 2.09.......................................... 6.74
2.10 - 2.14.......................................... 6.61
2.15 - 2.19.......................................... 6.74
2.20 - 2.29.......................................... 7.41
2.30 - 2.44.......................................... 6.71
2.45 - 3.19.......................................... 6.28
3.20 - 3.29.......................................... 7.25
3.30................................................. 6.57
-----
Total/Avg./Wtd. Avg.:................................ 7.07%
-----
-----
NZWA: 1.65...........................................
</TABLE>
- ----------------------------------
(1) Occupancy Rates are calculated without reference to Hospitality properties.
A-1-15
<PAGE>
OCCUPANCY RATES
(ALL MORTGAGE LOANS OTHER THAN MORTGAGE LOANS SECURED BY HOSPITALITY PROPERTIES)
<TABLE>
<CAPTION>
% BY
AGGREGATE AGGREGATE AVERAGE
NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
RANGE OF OCCUPANCY RATES(%) LOANS BALANCE BALANCE BALANCE
- ------------------------------------------------------ --------------- --------------- --------------- -------------
<S> <C> <C> <C> <C>
less than or =65.00................................... 2 $ 45,989,949 2.0% $22,994,975
70.01 - 75.00......................................... 2 20,895,642 0.9 10,447,821
75.01 - 80.00......................................... 8 15,820,406 0.7 1,977,551
85.01 - 90.00......................................... 26 149,568,211 6.4 5,752,624
greater than or = 95.01............................... 261 1,654,041,567 71.1 6,337,324
--- --------------- ------ -------------
Total/Avg./Wtd. Avg.:................................. 391 $ 2,325,520,229 100.0% $ 5,947,622
--- --------------- ------ -------------
--- --------------- ------ -------------
<CAPTION>
HIGHEST WTD. AVG. WTD. AVG. WTD. AVG.
CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY
RANGE OF OCCUPANCY RATES(%) BALANCE LTV DSCR RATE
- ------------------------------------------------------ ------------- ----------------- ----------------- ---------------
<S> <C>
less than or =65.00................................... $ 45,000,000 53.5% 1.52x 54.4%
70.01 - 75.00......................................... 18,900,000 65.1 1.56 73.8
75.01 - 80.00......................................... 4,345,790 66.0 1.54 77.9
85.01 - 90.00......................................... 46,463,602 71.6 1.43 87.6
greater than or = 95.01............................... 199,846,047 65.5 1.68 98.0
------------- ----- ----- ------
Total/Avg./Wtd. Avg.:................................. $ 199,846,047 67.2% 1.61x 95.8%
------------- ----- ----- ------
------------- ----- ----- ------
<CAPTION>
WTD. AVG.
MORTGAGE
RANGE OF OCCUPANCY RATES(%) RATE
- ------------------------------------------------------ -------------
less than or =65.00................................... 7.28%
70.01 - 75.00......................................... 7.14
75.01 - 80.00......................................... 7.46
85.01 - 90.00......................................... 7.43
greater than or = 95.01............................... 7.00
-----
Total/Avg./Wtd. Avg.:................................. 7.08%
-----
-----
</TABLE>
A-1-16
<PAGE>
REMAINING AMORTIZATION TERMS
(ALL MORTGAGE LOANS OTHER THAN INTEREST-ONLY MORTGAGE LOANS)
<TABLE>
<CAPTION>
% BY
AGGREGATE AGGREGATE AVERAGE
NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
RANGE OF REMAINING AMORTIZATION TERM (MONTHS) LOANS BALANCE BALANCE BALANCE
- ------------------------------------------------------ --------------- --------------- --------------- -------------
<S> <C> <C> <C> <C>
=< 109................................................ 1 $ 64,000,000 2.6% $64,000,000
110 - 133............................................. 4 7,575,451 0.3 1,893,863
134 - 157............................................. 1 2,148,532 0.1 2,148,532
170 - 181............................................. 8 26,302,681 1.1 3,287,835
182 - 193............................................. 2 3,972,707 0.2 1,986,354
194 - 205............................................. 1 2,319,892 0.1 2,319,892
218 - 229............................................. 1 1,477,894 0.1 1,477,894
230 - 241............................................. 22 91,899,808 3.7 4,177,264
242 - 253............................................. 10 56,828,639 2.3 5,682,864
254 - 265............................................. 3 7,922,737 0.3 2,640,912
266 - 277............................................. 3 7,563,951 0.3 2,521,317
278 - 289............................................. 3 16,611,253 0.7 5,537,084
290 - 301............................................. 107 789,133,740 32.0 7,375,082
314 - 325............................................. 3 56,092,480 2.3 18,697,493
326 - 349............................................. 3 12,682,915 0.5 4,227,638
350 >=................................................ 234 1,317,916,025 53.5 5,632,120
--- --------------- ------ -------------
Total/Avg./Wtd. Avg.:................................. 406 $ 2,464,448,705 100.0% $ 6,070,071
--- --------------- ------ -------------
--- --------------- ------ -------------
Weighted Average: 325.96
<CAPTION>
HIGHEST WTD. AVG. WTD. AVG. WTD. AVG.
CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE OCCUPANCY
RANGE OF REMAINING AMORTIZATION TERM (MONTHS) BALANCE LTV DSCR RATE
- ------------------------------------------------------ ------------- ----------------- ----------------- ---------------
<S> <C>
=< 109................................................ $ 64,000,000 61.1% 2.05x 96.6%
110 - 133............................................. 3,450,000 33.8 1.77 98.7
134 - 157............................................. 2,148,532 47.5 2.00 84.0
170 - 181............................................. 10,445,688 51.5 1.67 98.0
182 - 193............................................. 2,930,302 57.8 1.26 100.0
194 - 205............................................. 2,319,892 74.8 1.29 100.0
218 - 229............................................. 1,477,894 0.0 0.00 100.0
230 - 241............................................. 26,950,989 64.3 1.59 97.9
242 - 253............................................. 9,220,000 0.0 0.00 100.0
254 - 265............................................. 3,277,670 72.1 1.30 100.0
266 - 277............................................. 3,684,611 76.8 1.27 100.0
278 - 289............................................. 10,150,000 82.2 1.24 99.2
290 - 301............................................. 136,100,000 62.0 1.75 94.9
314 - 325............................................. 46,463,602 71.5 1.36 85.9
326 - 349............................................. 4,609,873 75.2 1.27 90.5
350 >=................................................ 199,846,047 69.2 1.55 96.1
------------- ----- ----- ------
Total/Avg./Wtd. Avg.:................................. $ 199,846,047 66.4% 1.62x 95.8%
------------- ----- ----- ------
------------- ----- ----- ------
Weighted Average: 325.96
<CAPTION>
WTD. AVG.
MORTGAGE
RANGE OF REMAINING AMORTIZATION TERM (MONTHS) RATE
- ------------------------------------------------------ -------------
=< 109................................................ 6.61%
110 - 133............................................. 7.22
134 - 157............................................. 9.04
170 - 181............................................. 7.08
182 - 193............................................. 9.59
194 - 205............................................. 7.88
218 - 229............................................. 7.25
230 - 241............................................. 7.14
242 - 253............................................. 7.83
254 - 265............................................. 7.30
266 - 277............................................. 7.51
278 - 289............................................. 7.29
290 - 301............................................. 7.23
314 - 325............................................. 7.44
326 - 349............................................. 7.88
350 >=................................................ 7.00
-----
Total/Avg./Wtd. Avg.:................................. 7.11%
-----
-----
Weighted Average: 325.96
</TABLE>
A-1-17
<PAGE>
MORTGAGE RATES
(ALL MORTGAGE LOANS)
<TABLE>
<CAPTION>
% BY
RANGE OF AGGREGATE AGGREGATE AVERAGE HIGHEST WTD. AVG. WTD. AVG.
MORTGAGE RATES NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE
(%) LOANS BALANCE BALANCE BALANCE BALANCE LTV(1) DSCR (1)
- --------------- --------------- -------------- --------------- ------------ ------------- --------------- ---------------
less than or
=6.49......... 15 $ 142,550,000 5.6% $9,503,333 $ 36,500,000 59.7% 1.98x
<S> <C> <C> <C> <C> <C> <C> <C>
6.50 -6.74..... 12 563,560,751 22.0 46,963,396 199,846,047 55.4 2.11
6.75 -6.99..... 41 400,011,597 15.6 9,756,380 130,000,000 64.9 1.71
7.00 -7.24..... 106 459,755,749 17.9 4,337,318 20,958,730 72.9 1.39
7.25 -7.49..... 152 672,598,574 26.2 4,424,991 46,463,602 70.2 1.41
7.50 -7.74..... 43 177,283,670 6.9 4,122,876 24,642,722 71.9 1.42
7.75 -7.99..... 27 105,895,091 4.1 3,922,040 8,436,432 72.2 1.54
8.00 -8.24..... 3 13,506,389 0.5 4,502,130 7,584,785 73.4 1.41
8.25 -8.49..... 2 9,139,695 0.4 4,569,848 6,193,833 59.0 1.41
8.50 -8.74..... 2 7,673,916 0.3 3,836,958 4,678,878 70.6 1.33
8.75 -8.99..... 1 2,350,542 0.1 2,350,542 2,350,542 62.7 1.61
9.00 greater
than or =..... 4 9,622,730 0.4 2,405,683 3,501,491 58.1 1.41
--- -------------- ------ ------------ ------------- --- ---
Total/Avg./Wtd.
Avg.:......... 408 $2,563,948,705 100.0% $6,284,188 $ 199,846,047 66.0% 1.65x
--- -------------- ------ ------------ ------------- --- ---
--- -------------- ------ ------------ ------------- --- ---
Weighted
Average: 7.09
<CAPTION>
MINIMUM MAXIMUM
RANGE OF CUT-OFF DATE CUT-OFF DATE WTD. AVG. WTD. AVG.
MORTGAGE RATES UWNCF UWNCF OCCUPANCY MORTGAGE
(%) DSCR(1) DSCR(1) RATE(2) RATE
- --------------- --------------- --------------- ------------- -------------
less than or
=6.49......... 1.06x 2.48x 97.1% 6.33%
<S> <C> <C> <C> <C>
6.50 -6.74..... 1.28 3.30 96.6 6.64
6.75 -6.99..... 1.15 2.30 97.4 6.91
7.00 -7.24..... 1.18 2.07 95.7 7.13
7.25 -7.49..... 1.12 3.20 94.4 7.36
7.50 -7.74..... 1.16 2.24 94.8 7.61
7.75 -7.99..... 1.19 2.05 96.8 7.89
8.00 -8.24..... 1.31 1.47 100.0 8.11
8.25 -8.49..... 1.28 1.47 88.5 8.33
8.50 -8.74..... 1.22 1.49 89.6 8.60
8.75 -8.99..... 1.61 1.61 94.0 8.88
9.00 greater
than or =..... 1.16 2.00 90.7 9.25
--- --- ----- ---
Total/Avg./Wtd.
Avg.:......... 1.06x 3.30x 95.8% 7.09%
--- --- ----- ---
--- --- ----- ---
Weighted
Average: 7.09
</TABLE>
- ------------------------------
(1) The DSCR and LTV information does not reflect the 29 Credit Lease Loans
representing 4.65% of the Aggregate Cut-off Date Balance.
(2) Occupancy Rates are calculated without reference to Hospitality properties.
A-1-18
<PAGE>
MATURITY DATE LTV RATIOS
(BALLOON AND ARD LOANS ONLY)
<TABLE>
<CAPTION>
% BY WTD. AVG.
RANGE OF AGGREGATE AGGREGATE AVERAGE HIGHEST WTD. AVG. CUT-OFF DATE
MATURITY DATE NUMBER OF CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE CUT-OFF DATE UWNCF
LTV RATIO (%) LOANS BALANCE BALANCE BALANCE BALANCE LTV DSCR
- --------------- --------------- -------------- --------------- ------------ ------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
15.1 -20.0..... 1 $ 2,091,556 0.1% $2,091,556 $ 2,091,556 72.1% 1.30x
25.1 -30.0..... 1 8,335,649 0.4 8,335,649 8,335,649 70.6 1.54
30.1 -35.0..... 5 27,139,610 1.2 5,427,922 12,969,890 51.5 1.91
35.1 -40.0..... 7 183,099,573 8 26,157,082 130,000,000 49.5 2.14
40.1 -45.0..... 12 235,030,878 10.2 19,585,907 199,846,047 50.0 2.20
45.1 -50.0..... 17 258,655,342 11.3 15,215,020 136,100,000 53.7 2.00
50.1 -55.0..... 29 179,052,548 7.8 6,174,226 30,000,000 65.0 1.71
55.1 -60.0..... 62 251,139,025 10.9 4,050,629 25,000,000 69.8 1.51
60.1 -65.0..... 92 547,068,675 23.8 5,946,399 64,000,000 71.2 1.53
65.1 -70.0..... 106 535,530,581 23.3 5,052,175 45,200,000 78.1 1.32
70.1 -75.0..... 15 68,034,462 3 4,535,631 13,500,000 79.2 1.35
75.1 -80.0..... 1 1,199,245 0.1 1,199,245 1,199,245 80.0 1.40
--- -------------- ------ ------------ ------------- --- ---
Total:......... 348 $2,296,377,145 100% $6,598,785 $ 199,846,047 66.3% 1.66x
--- -------------- ------ ------------ ------------- --- ---
--- -------------- ------ ------------ ------------- --- ---
Weighted
Average:
66.30
<CAPTION>
MINIMUM MAXIMUM
RANGE OF CUT-OFF DATE CUT-OFF DATE WTD. AVG. WTD. AVG.
MATURITY DATE UWNCF UWNCF OCCUPANCY MORTGAGE
LTV RATIO (%) DSCR DSCR RATE RATE
- --------------- --------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
15.1 -20.0..... 1.30x 1.30x 100.0% 7.61%
25.1 -30.0..... 1.54 1.54 0.0 7.88
30.1 -35.0..... 1.34 3.20 98.0 7.19
35.1 -40.0..... 1.38 2.30 97.0 6.93
40.1 -45.0..... 1.29 2.31 96.2 6.73
45.1 -50.0..... 1.28 2.48 95.2 6.84
50.1 -55.0..... 1.06 2.05 94.7 6.96
55.1 -60.0..... 1.19 1.90 95.3 7.21
60.1 -65.0..... 1.12 2.11 94.8 7.13
65.1 -70.0..... 1.15 1.70 96.2 7.15
70.1 -75.0..... 1.26 1.50 96.8 7.28
75.1 -80.0..... 1.40 1.40 98.3 6.98
--- --- ----- ---
Total:......... 1.06x 3.20x 95.5% 7.05%
--- --- ----- ---
--- --- ----- ---
Weighted
Average:
66.30
</TABLE>
A-1-19
<PAGE>
RANGE OF STATE DISTRIBUTION
(ALL MORTGAGE LOANS AT PROPERTY LEVEL)
<TABLE>
<CAPTION>
% BY
NUMBER AGGREGATE
STATE OF CUT-OFF DATE
DISTRIBUTION LOANS BALANCE BALANCE
- ------------------------------------------------------------------------- ----------- ------------------ -----------
<S> <C> <C> <C>
CA....................................................................... 80 $ 430,395,766 16.79%
NJ....................................................................... 21 168,156,601 6.56
FL....................................................................... 43 135,411,071 5.28
TX....................................................................... 43 130,165,158 5.08
CT....................................................................... 53 110,993,127 4.33
PA....................................................................... 12 109,608,162 4.28
NY....................................................................... 19 108,696,563 4.24
UT....................................................................... 4 94,199,166 3.67
OR....................................................................... 10 93,909,578 3.66
MI....................................................................... 9 90,654,398 3.54
NV....................................................................... 10 87,598,047 3.42
VA....................................................................... 8 71,300,076 2.78
SC....................................................................... 9 64,979,722 2.53
IL....................................................................... 9 62,809,788 2.45
WA....................................................................... 11 60,645,693 2.37
GA....................................................................... 20 60,343,442 2.35
DE....................................................................... 4 58,490,814 2.28
MA....................................................................... 14 53,477,729 2.09
CO....................................................................... 10 52,376,017 2.04
AL....................................................................... 7 51,830,724 2.02
OH....................................................................... 16 49,572,859 1.93
AZ....................................................................... 13 47,008,036 1.83
MD....................................................................... 8 40,010,919 1.56
IA....................................................................... 5 36,280,950 1.42
TN....................................................................... 10 34,775,027 1.36
NH....................................................................... 5 31,791,079 1.24
OK....................................................................... 8 26,530,380 1.03
DC....................................................................... 3 23,153,015 0.90
MT....................................................................... 4 23,096,647 0.90
KS....................................................................... 9 20,028,011 0.78
WI....................................................................... 4 17,063,730 0.67
MO....................................................................... 4 14,682,619 0.57
ID....................................................................... 1 14,413,099 0.56
MN....................................................................... 7 13,087,524 0.51
NE....................................................................... 2 11,386,499 0.44
RI....................................................................... 6 9,964,836 0.39
IN....................................................................... 3 9,879,088 0.39
HI....................................................................... 1 9,220,000 0.36
NC....................................................................... 4 9,113,030 0.36
MS....................................................................... 3 8,238,779 0.32
LA....................................................................... 2 5,397,944 0.21
NM....................................................................... 1 4,500,000 0.18
KY....................................................................... 2 3,671,722 0.14
ND....................................................................... 2 3,495,193 0.14
WY....................................................................... 1 1,546,075 0.06
--- ------------------ -----------
Total:................................................................... 520 $ 2,563,948,705 100.00%
--- ------------------ -----------
--- ------------------ -----------
</TABLE>
A-1-20
<PAGE>
GMAC Commercial Mortgage Securities, Inc. Mortgage Pass-Through Certificates
Series 1998-C2
ITALICS indicate mortgage loans secured by multiple properties.
<TABLE>
<CAPTION>
Control Loan
No. Seller Number Property Name
========================================================================================================
<S> <C> <C> <C>
1 GMACCM GMAC2080 OPERS Factory Outlet Portfolio
1a GMACCM GMAC2080-A Riviera Centre Factory Stores
1b GMACCM GMAC2080-B Westbrook Factory Stores
1c GMACCM GMAC2080-C Myrtle Beach Factory Stores
1d GMACCM GMAC2080-D Rehoboth Beach Outlet Center (Rehoboth 1)
- --------------------------------------------------------------------------------------------------------
1e GMACCM GMAC2080-E Bayside & Seaside Exp. (Rehoboth II)
1f GMACCM GMAC2080-F Ocean Outlets - Seaside I (Rehoboth 3)
1g GMACCM GMAC2080-G Factory Stores of Tuscola
1h GMACCM GMAC2080-H Hilton Head Factory Stores I
1i GMACCM GMAC2080-I Hilton Head Factory Stores 2
- --------------------------------------------------------------------------------------------------------
1j GMACCM GMAC2080-J Factory Stores at Park City
1k GMACCM GMAC2080-K Lakes Region Factory Stores
1l GMACCM GMAC2080-L Factory Stores at Lincoln City
2 Lehman Brothers LG980424001 Arden
2a Lehman Brothers LG980424001A 625 The City (aka, City Centre I)
- --------------------------------------------------------------------------------------------------------
2b Lehman Brothers LG980424001B 1370 Valley Vista
2c Lehman Brothers LG980424001C 1919 Santa Monica
2d Lehman Brothers LG980424001D 5161 Lankershim
2e Lehman Brothers LG980424001E 5632 Bolsa (aka, Huntington Beach R&D III)
2f Lehman Brothers LG980424001F 5672 Bolsa (aka, Huntington Beach R&D II)
- --------------------------------------------------------------------------------------------------------
2g Lehman Brothers LG980424001G 5702 Bolsa (aka, Huntington Beach R&D I)
2h Lehman Brothers LG980424001H 10351 Santa Monica
2I Lehman Brothers LG980424001I Alcoa/Cymer Building (aka, Cymer Technology Center)
2j Lehman Brothers LG980424001J Calabasas (buildings 1,2,3,4)
2k Lehman Brothers LG980424001K Carlsbad Corporate Center
- --------------------------------------------------------------------------------------------------------
2l Lehman Brothers LG980424001L NCR Building (aka, Torreyanna Science Park)
2m Lehman Brothers LG980424001M Newport Irvine Office Center
2n Lehman Brothers LG980424001N Noble Professional Center
2o Lehman Brothers LG980424001O Orange Financial Center
2p Lehman Brothers LG980424001P Parkway Center
- --------------------------------------------------------------------------------------------------------
2q Lehman Brothers LG980424001Q Savi Tech Center
2r Lehman Brothers LG980424001R Scripps Ranch
2s Lehman Brothers LG980424001S South Coast Executive Center
2t Lehman Brothers LG980424001T The Plaza (aka, Fountain Valley Plaza)
2u Lehman Brothers LG980424001U Vista Sorrento
- --------------------------------------------------------------------------------------------------------
2v Lehman Brothers LG980424001V Westridge
3 Lehman Brothers LG980424002 Boykin
3a Lehman Brothers LG980424002A Doubletree-Portland Downtown
3b Lehman Brothers LG980424002B Doubletree-Spokane Valley
3c Lehman Brothers LG980424002C Doubletree-Yakima Valley
- --------------------------------------------------------------------------------------------------------
3d Lehman Brothers LG980424002D Doubletree-Sacramento
3e Lehman Brothers LG980424002E Doubletree-Riverside
3f Lehman Brothers LG980424002F Doubletree-Bellevue Center
3g Lehman Brothers LG980424002G Doubletree-Eugene/Springfield
3h Lehman Brothers LG980424002H Doubletree-Lloyd Center
- --------------------------------------------------------------------------------------------------------
3I Lehman Brothers LG980424002I Doubletree-World Arena
3j Lehman Brothers LG980424002J Doubletree-Omaha
4 Lehman Brothers LG97121503 South Towne Center and South Towne Marketplace
5 Lehman Brothers LG980424003 Grove Property Trust
5a Lehman Brothers LG980424003A Four Winds Apartments
- --------------------------------------------------------------------------------------------------------
5b Lehman Brothers LG980424003B Brooksyde Apartments
5c Lehman Brothers LG980424003C River's Bend Apartments
5d Lehman Brothers LG980424003D Summit & Birch Hill Apartments
5e Lehman Brothers LG980424003E Colonial Village
5f Lehman Brothers LG980424003F Royale Apartments
- --------------------------------------------------------------------------------------------------------
5g Lehman Brothers LG980424003G Fox Hill Apartments
5h Lehman Brothers LG980424003H Bradford Commons
5I Lehman Brothers LG980424003I Burgundy Studios
5j Lehman Brothers LG980424003J Fox Hill Commons
5k Lehman Brothers LG980424003K Loomis Manor
- --------------------------------------------------------------------------------------------------------
5l Lehman Brothers LG980424003L Woodbrige Apartments
5m Lehman Brothers LG980424003M Securtity Manor
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Control
No. Property Type Address City
==================================================================================================================================
<S> <C> <C> <C>
1 Retail - Anchored Various Various
1a Retail - Anchored South McKenzie Street Foley
1b Retail - Unanchored 314 Flat Rock Place Westbrook
1c Retail - Unanchored Hwy 501 & Waccamaw Pines Dr Myrtle Beach
1d Retail - Unanchored Route 1 and Route 283 Rehoboth Beach
- ----------------------------------------------------------------------------------------------------------------------------------
1e Retail - Anchored Route 1 and Route 271/Route 273 Rehoboth
1f Retail - Unanchored Route 1 and Route 271 Rehoboth Beach
1g Retail - Unanchored SWQ of Highway 36 and Interstate 57 Tuscola
1h Retail - Unanchored U.S. Highway 278 Bluffton
1i Retail - Anchored U.S. Highway 278 Bluffton
- ----------------------------------------------------------------------------------------------------------------------------------
1j Retail - Unanchored 6699 North Landmark Drive Park City
1k Retail - Unanchored 120 Laconia Road Tilton
1l Retail - Anchored 1500 SE Devils Lake Road Lincoln City
2 Office/Industrial - 78% Office/22% Industrial Various Various
2a Office 625 The City Drive Orange
- ----------------------------------------------------------------------------------------------------------------------------------
2b Office 1370 Valley Vista Drive Diamond Bar
2c Office 1919 Santa Monica Santa Monica
2d Office 5161 Lankershim Blvd. North Hollywood
2e Office/Industrial 5632 Bolsa Avenue Huntington Beach
2f Office/Industrial 5672 Bolsa Avenue Huntington Beach
- ----------------------------------------------------------------------------------------------------------------------------------
2g Office/Industrial 5702 Bolsa Avenue Huntington Beach
2h Office 10351 Santa Monica Los Angeles
2I Office/Industrial 16250 Via Del Campo San Diego
2j Office 26010,26025,26115 and 26135 Mureau Road Calabasas
2k Office 1950 Camino Vida Roble Carlsbad
- ----------------------------------------------------------------------------------------------------------------------------------
2l Office 11010 Torreyanna+F65 Road La Jolla
2m Office 3300 Irvine Avenue Newport Beach
2n Office 15060 Ventura Blvd Sherman Oaks
2o Office 701 South Parker Street Orange
2p Office 4200 & 4260 Truxton Ave Bakersfield
- ----------------------------------------------------------------------------------------------------------------------------------
2q Office/Industrial 22705-22745 Savi Ranch Pkwy Yorba Linda
2r Office/Industrial 10180 Scripps Ranch San Diego
2s Office 1503 South Coast Costa Mesa
2t Office 10540 Talbert Ave. Fountain Valley
2u Office 10251 Vista Sorrento San Diego
- ----------------------------------------------------------------------------------------------------------------------------------
2v Office/Industrial 6565 Na+F165ncy Ridge S San Diego
3 Hotel - Full Service Various Various
3a Hotel - Full Service 315 SW Lincoln Portland
3b Hotel - Full Service North 1100 Sullivan Road Spokane
3c Hotel - Full Service 1507 North First Street Yakima
- ----------------------------------------------------------------------------------------------------------------------------------
3d Hotel - Full Service 2001 Point West Way Sacramento
3e Hotel - Full Service 2900 Chinden Boulevard Boise
3f Hotel - Full Service 818 112th Avenue NE Bellevue
3g Hotel - Full Service 3280 Gateway Road Springfield
3h Hotel - Full Service 1000 NE Multnomah Portland
- ----------------------------------------------------------------------------------------------------------------------------------
3I Hotel - Full Service 177Cheyenn Mountain Boulevard Colorado Springs
3j Hotel - Full Service 1616 Dodge Street Omaha
4 Retail - Anchored I-15 and 10600 South Street Sandy
5 Multifamily Various Various
5a Multifamily 5500 North Main Street Fall River
- ----------------------------------------------------------------------------------------------------------------------------------
5b Multifamily 105-169 Loomis Drive West Hartford
5c Multifamily 630 Poguonock Avenue Windsor
5d Multifamily 191-221 & 271-287 Main Street Farmington
5e Multifamily 10 Colonial Court Plainville
5f Multifamily 65-75 Oaklawn Avenue Cranston
- ----------------------------------------------------------------------------------------------------------------------------------
5g Multifamily 168 Fox Hill Lane Enfield
5h Multifamily 1518-1584 Willard Avenue Newington
5I Multifamily 104 Meeting House Lane Middletown
5j Multifamily 101 South Street Vernon
5k Multifamily 71 Loomis Drive West Hartford
- ----------------------------------------------------------------------------------------------------------------------------------
5l Multifamily 83 Main Street Newington
5m Multifamily 47 Broad Street Westfield
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial Mortgage
No. State Code Groups Balance ($) Balance ($) Balance Pool Balance Rate (%)
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 VAR Various No $ 200,000,000 $ 199,846,047 7.79% 7.79% 6.5900%
1a AL 36535
1b CT 06498
1c SC 29579
1d DE 19971
- -----------------------------------------------------------------------------------------------------------------------
1e DE 19971
1f DE 19971
1g IL 61953
1h SC 29910
1i SC 29910
- -----------------------------------------------------------------------------------------------------------------------
1j UT 84098
1k NH 03276
1l OR 97367
2 CA Various No 136,100,000 136,100,000 5.31 13.10 6.7400
2a CA 92668
- -----------------------------------------------------------------------------------------------------------------------
2b CA 91765
2c CA 90404
2d CA 91601
2e CA 92649
2f CA 92649
- -----------------------------------------------------------------------------------------------------------------------
2g CA 92649
2h CA 90025
2I CA 92127
2j CA 91302
2k CA 92008
- -----------------------------------------------------------------------------------------------------------------------
2l CA 92121
2m CA 92660
2n CA 91403
2o CA 92668
2p CA 93309
- -----------------------------------------------------------------------------------------------------------------------
2q CA 92687
2r CA 92131
2s CA 92626
2t CA 92708
2u CA 92121
- -----------------------------------------------------------------------------------------------------------------------
2v CA 92121
3 VAR Various No 130,000,000 130,000,000 5.07 18.17 6.9000
3a OR 97201 6.9000
3b WA 99037 6.9000
3c WA 98901 6.9000
- -----------------------------------------------------------------------------------------------------------------------
3d CA 95815 6.9000
3e ID 83720 6.9000
3f WA 99004 6.9000
3g OR 97477 6.9000
3h OR 98232 6.9000
- -----------------------------------------------------------------------------------------------------------------------
3I CO 80906 6.9000
3j NE 68102 6.9000
4 UT 84070 No 64,000,000 64,000,000 2.50 20.67 6.6100
5 VAR Various No 63,000,000 63,000,000 2.46 23.13 6.5900
5a MA 02720 6.5900
- -----------------------------------------------------------------------------------------------------------------------
5b CT 06107 6.5900
5c CT 06095 6.5900
5d CT 06032 6.5900
5e CT 06062 6.5900
5f RI 02920 6.5900
- -----------------------------------------------------------------------------------------------------------------------
5g CT 06082 6.5900
5h CT 06111 6.5900
5I CT 06457 6.5900
5j CT 06066 6.5900
5k CT 06107 7
- -----------------------------------------------------------------------------------------------------------------------
5l CT 06111 6.5900
5m MA 01085 6.5900
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Master Interest Original Remaining Term to Term to Original
Control Servicing Servicing Accrual Amortization Interest-Only Interest-Only Maturity Maturity Amortization
No. Fee Fee Method Type Period (Mos.) Period (Mos.) (Mos.) (Mos.) Term (Mos.)
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Act/360 Hyperamortizing 0 0 120 119 360
1a
1b
1c
1d
- ---------------------------------------------------------------------------------------------------------------------------------
1e
1f
1g
1h
1i
- ---------------------------------------------------------------------------------------------------------------------------------
1j
1k
1l
2 Act/360 Interest Only...Hyper 57 56 118 117 300
2a
- ---------------------------------------------------------------------------------------------------------------------------------
2b
2c
2d
2e
2f
- ---------------------------------------------------------------------------------------------------------------------------------
2g
2h
2I
2j
2k
- ---------------------------------------------------------------------------------------------------------------------------------
2l
2m
2n
2o
2p
- ---------------------------------------------------------------------------------------------------------------------------------
2q
2r
2s
2t
2u
- ---------------------------------------------------------------------------------------------------------------------------------
2v
3 Act/360 Interest Only...Hyper 23 21 120 118 300
3a
3b
3c
- ---------------------------------------------------------------------------------------------------------------------------------
3d
3e
3f
3g
3h
- ---------------------------------------------------------------------------------------------------------------------------------
3I
3j
4 Act/360 Interest Only...Hyper 120 120 120 120 0
5 30/360 Interest Only 120 118 120 118 0
5a
- ---------------------------------------------------------------------------------------------------------------------------------
5b
5c
5d
5e
5f
- ---------------------------------------------------------------------------------------------------------------------------------
5g
5h
5I
5j
5k
- ---------------------------------------------------------------------------------------------------------------------------------
5l
5m
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Remaining Underwritten
Control Amortization Origination Maturity Balloon Annual Net
No. Term (Mos.) Date or ARD Balance ($) Prepayment Provisions Debt Service ($) Cash Flow ($)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
1 359 6/18/98 7/10/08 $170,351,005 L(2),D(8) $ 15,466,775 $ 35,691,383
1a
1b
1c
1d
- -----------------------------------------------------------------------------------------------------------------------------------
1e
1f
1g
1h
1i
- -----------------------------------------------------------------------------------------------------------------------------------
1j
1k
1l
2 300 6/8/98 4/16/08 124,441,148 L(2.083),D(7.75) 9,300,545 20,372,373
2a
- -----------------------------------------------------------------------------------------------------------------------------------
2b
2c
2d
2e
2f
- -----------------------------------------------------------------------------------------------------------------------------------
2g
2h
2I
2j
2k
- -----------------------------------------------------------------------------------------------------------------------------------
2l
2m
2n
2o
2p
- -----------------------------------------------------------------------------------------------------------------------------------
2q
2r
2s
2t
2u
- -----------------------------------------------------------------------------------------------------------------------------------
2v
3 300 5/24/98 6/2/08 110,251,602 L(2.167),D(7.833) 10,926,439 25,082,126
3a
3b
3c
- -----------------------------------------------------------------------------------------------------------------------------------
3d
3e
3f
3g
3h
- -----------------------------------------------------------------------------------------------------------------------------------
3I
3j
4 0 7/24/98 8/10/08 64,000,000 L(2),D(8) 4,289,156 8,775,115
5 0 6/1/98 6/1/08 63,000,000 L(2.167),D(7.833) 4,151,700 8,780,468
5a
- -----------------------------------------------------------------------------------------------------------------------------------
5b
5c
5d
5e
5f
- -----------------------------------------------------------------------------------------------------------------------------------
5g
5h
5I
5j
5k
- -----------------------------------------------------------------------------------------------------------------------------------
5l
5m
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten Cut-off Scheduled Sq. Ft, Units
Control NCF Appraised Appraisal Date Maturity or ARD Year Year Beds, Pads
No. DSCR (x) Value ($) Date LTV (%) Date LTV(%) Built Renovated or Rooms
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 2.31 x $411,390,000 48.6% 41.4% Various Various 2,918,570 Sq Ft
1a 72,000,000 5/10/98 1988 1994/1995 534,011 Sq Ft
1b 33,400,000 5/6/98 1995 N/A 254,094 Sq Ft
1c 51,000,000 9/1/98 In Stages 1955-1998 N/A 333,266 Sq Ft
1d 28,000,000 5/1/98 1995 N/A 186,059 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
1e 46,000,000 5/1/98 1989/1995 1998 284,972 Sq Ft
1f 13,900,000 5/1/98 1990 1995 88,181 Sq Ft
1g 30,090,000 5/1/98 1994 N/A 248,646 Sq Ft
1h 23,750,000 5/10/98 In Stages 1988-1991 N/A 172,032 Sq Ft
1i 17,500,000 5/10/98 1997 N/A 123,379 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
1j 28,100,000 5/8/98 1991 N/A 205,456 Sq Ft
1k 29,000,000 5/13/98 1994 N/A 228,146 Sq Ft
1l 38,650,000 4/28/98 1989 1996 260,328 Sq Ft
2 2.19 264,595,517 51.4 47.0 1984-96 1995-97 2,252,678 Sq Ft
2a 14,991,000 6/30/98 1985 N/A 139,806 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
2b 11,507,000 6/30/98 1988 N/A 84,273 Sq Ft
2c 7,488,000 6/30/98 1991 N/A 44,096 Sq Ft
2d 25,542,000 6/30/98 1985 N/A 178,317 Sq Ft
2e 1,606,000 6/30/98 1987 N/A 21,568 Sq Ft
2f 729,000 6/30/98 1987 N/A 11,968 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
2g 1,973,000 6/30/98 1987 N/A 27,731 Sq Ft
2h 11,913,000 6/30/98 1984 N/A 96,251 Sq Ft
2I 19,400,000 6/30/98 1988-89 1990s 137,164 Sq Ft
2j 15,798,000 6/30/98 1988-89 N/A 123,121 Sq Ft
2k 16,524,000 6/30/98 1996 N/A 125,000 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
2l 16,547,000 6/30/98 1980 N/A 81,204 Sq Ft
2m 7,639,000 6/30/98 1980 N/A 74,224 Sq Ft
2n 7,225,000 6/30/98 1984-85 N/A 30,000 Sq Ft
2o 36,419,000 6/30/98 1985 N/A 305,439 Sq Ft
2p 9,673,000 6/30/98 1992, 95 N/A 70,000 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
2q 27,697,000 6/30/98 1985 N/A 341,446 Sq Ft
2r 3,824,000 6/30/98 1978 N/A 43,560 Sq Ft
2s 5,092,000 6/30/98 1979 N/A 60,605 Sq Ft
2t 10,129,000 6/30/98 1982 N/A 107,252 Sq Ft
2u 7,355,000 6/30/98 1981 N/A 69,386 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
2v 5,748,000 6/30/98 1985, 86 N/A 48,850 Sq Ft
3 2.30 276,600,000 0 47.0 39.9 1964-86 1995-97 3,062 Rooms
3a 24,900,000 4/16/98 1970 1995 235 Rooms
3b 11,000,000 4/13/98 1969,76,78 1994 237 Rooms
3c 8,500,000 4/13/98 1968,78 1994,95 208 Rooms
- ------------------------------------------------------------------------------------------------------------------------------------
3d 50,000,000 4/21/98 1974, 77-78, 83-84 88,94-5 448 Rooms
3e 27,000,000 4/16/98 1969 1980,96 304 Rooms
3f 19,500,000 4/22/98 1968 1989,97 208 Rooms
3g 10,500,000 4/14/98 1973 N/A 234 Rooms
3h 69,000,000 4/16/98 1960's 1996 476 Rooms
- ------------------------------------------------------------------------------------------------------------------------------------
3I 35,200,000 4/9/98 1986 1996 299 Rooms
3j 21,000,000 4/8/98 1969 1996 413 Rooms
4 2.05 104,700,000 7/10/98 61.1 61.1 1986,96,97 N/A 940,943 Sq Ft
5 2.11 100,900,000 62.4 62.4 1949-1996 N/A 1,950 Units
5a 9,100,000 4/27/98 1987, 1996 N/A 168 Units
- ------------------------------------------------------------------------------------------------------------------------------------
5b 3,200,000 4/22/98 1945 1997 81 Units
5c 19,700,000 4/22/98 1971-72 1996 355 Units
5d 11,400,000 4/30/98 1961,1965 N/A 185 Units
5e 5,600,000 4/20/98 1968 N/A 104 Units
5f 3,600,000 4/21/98 1971 N/A 77 Units
- ------------------------------------------------------------------------------------------------------------------------------------
5g 9,350,000 4/21/98 1974 N/A 168 Units
5h 3,150,000 4/20/98 1964 1997 65 Units
5I 2,900,000 4/30/98 1973 N/A 102 Units
5j 3,500,000 4/21/98 1965 N/A 74 Units
5k 2,950,000 4/22/98 1948 N/A 43 Units
- ------------------------------------------------------------------------------------------------------------------------------------
5l 3,650,000 4/20/98 1968 1997 73 Units
5m 2,470,000 4/22/98 1979 N/A 63 Units
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cut-off
Sq. Ft, Unit Replacement Annual
Control Bed, Pad Occupancy Occupancy Ownership Reserve TI/LC
No. or Room ($) Percentage (%) Date Interest Deposit Deposit
=======================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1 68.47 96.3% Fee Simple $ - $ -
1a 95.0 4/30/98 - -
1b 95.0 4/30/98 - -
1c 99.0 4/30/98 - -
1d 100.0 4/30/98 - -
- -------------------------------------------------------------------------------------------------------
1e 94.0 4/30/98 - -
1f 98.0 5/31/98 - -
1g 91.0 4/30/98 - -
1h 94.0 4/30/98 - -
1i 95.0 4/30/98 - -
- -------------------------------------------------------------------------------------------------------
1j 98.0 5/31/98 - -
1k 99.0 4/30/98 - -
1l 100.0 4/30/98 - -
2 60.42 97.3 Fee Simple 225,268 -
2a 97.0 4/1/98 - -
- -------------------------------------------------------------------------------------------------------
2b 95.1 4/2/98 - -
2c 96.3 4/1/98 - -
2d 90.2 4/1/98 - -
2e 100.0 4/1/98 - -
2f 100.0 4/1/98 - -
- -------------------------------------------------------------------------------------------------------
2g 100.0 4/1/98 - -
2h 97.8 4/1/98 - -
2I 88.2 4/1/98 - -
2j 100.0 4/1/98 - -
2k 100.0 4/1/98 - -
- -------------------------------------------------------------------------------------------------------
2l 100.0 4/1/98 - -
2m 91.9 4/1/98 - -
2n 97.6 4/1/98 - -
2o 92.9 4/1/98 - -
2p 99.5 4/2/98 - -
- -------------------------------------------------------------------------------------------------------
2q 100.0 4/1/98 - -
2r 100.0 4/1/98 - -
2s 95.1 4/1/98 - -
2t 100.0 4/1/98 - -
2u 100.0 4/1/98 - -
- -------------------------------------------------------------------------------------------------------
2v 100.0 4/1/98 - -
3 42,455.91 70.0 Fee Simple & Leasehold 4,931,586 -
3a 71.0 3/1/98 - -
3b 54.0 3/1/98 - -
3c 57.0 3/1/98 - -
- -------------------------------------------------------------------------------------------------------
3d 74.0 3/1/98 - -
3e 69.0 3/1/98 - -
3f 75.0 3/1/98 - -
3g 65.0 3/1/98 - -
3h 71.0 3/1/98 - -
- -------------------------------------------------------------------------------------------------------
3I 76.0% 3/1/98 $ - $ -
3j 76.0 3/1/98 - -
4 68.02 96.6 Fee Simple - -
5 32,307.69 95.8 Fee Simple - -
5a 96.4 3/31/98 - -
- -------------------------------------------------------------------------------------------------------
5b 98.8 4/1/98 - -
5c 97.0 3/31/98 - -
5d 95.0 3/31/98 - -
5e 93.0 4/1/98 - -
5f 96.0 3/31/98 - -
- -------------------------------------------------------------------------------------------------------
5g 92.9 3/25/98 - -
5h 92.2 3/23/98 - -
5I 97.1 3/24/98 - -
5j 93.2 3/31/98 - -
5k 100 3/25/98 - -
- -------------------------------------------------------------------------------------------------------
5l 94.5 4/1/98 - -
5m 98.0 3/17/98 - -
- -------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Largest Tenant
Control Tenant Area Lease Exp. Control
No. Largest Tenant Name Leased (Sq. Ft.) Date No.
=====================================================================================
<S> <C> <C> <C> <C>
1 1
1a Westpoint Pepperell 28,249 11/30/98 1a
1b Reebok #392 12,092 11/30/00 1b
1c Saks & Co. 15,419 11/30/10 1c
1d L.L. Bean 16,500 5/31/00 1d
- -------------------------------------------------------------------------------------
1e VF Factory Outlet (Vanity Fair) 26,583 4/30/03 1e
1f Dress Barn 11,102 6/30/02 1f
1g Levi's 12,016 10/31/99 1g
1h Specials, Exclusively Levi Str 8,750 5/31/99 1h
1i Nike Factory Store 11,433 4/30/07 1i
- -------------------------------------------------------------------------------------
1j Westpoint Pepperell Mill Store 17,876 12/31/07 1j
1k Levi's 12,200 1/31/00 1k
1l L.L. Bean 16,464 5/31/03 1l
2 2
2a Golden Eagle Insurance 16,312 7/31/99 2a
- -------------------------------------------------------------------------------------
2b Ahmanson Developments 23,820 2/18/00 2b
2c State Farm 23,127 7/12/01 2c
2d Walt Disney Picture 98,802 8/7/03 2d
2e Custom Copy Services 21,568 7/31/02 2e
2f Barbara Thomas, Enterprises 11,968 1/31/99 2f
- -------------------------------------------------------------------------------------
2g Optical Laser 17,400 3/14/01 2g
2h Gursey, Schneider & Co. 16,088 8/31/01 2h
2I Cymer Inc. 155,612 1/1/10 2I
2j Digital Insight 30,835 5/14/03 2j
2k Pacific Southwest Bank Lending 125,000 12/31/07 2k
- -------------------------------------------------------------------------------------
2l Aurora Biosciences 81,204 9/30/08 2l
2m Symbios Logic, Inc. 7,995 11/30/98 2m
2n California Federal Bank 7,424 12/31/98 2n
2o Foundation Health Kal Corp. 71,946 9/30/03 2o
2p Bakersfield Cellular 20,611 6/30/01 2p
- -------------------------------------------------------------------------------------
2q SensorMedics Corp. 119,966 12/31/04 2q
2r Inova Diagnostics, Inc. 43,560 10/31/04 2r
2s Trendwest Resorts, Inc. 11,288 3/2/02 2s
2t University of Phoenix 67,062 12/31/03 2t
2u Qualcomm 69,386 3/31/03 2u
- -------------------------------------------------------------------------------------
2v Advanced Pollution 23,100 5/14/02 2v
3 3
3a 3a
3b 3b
3c 3c
- -------------------------------------------------------------------------------------
3d 3d
3e 3e
3f 3f
3g 3g
3h 3h
- -------------------------------------------------------------------------------------
3I 3I
3j 3j
4 Dilliards (Shadow) 212,233 12/31/34 4
5 5
5a 5a
- -------------------------------------------------------------------------------------
5b 5b
5c 5c
5d 5d
5e 5e
5f 5f
- -------------------------------------------------------------------------------------
5g 5g
5h 5h
5I 5I
5j 5j
5k 5k
- -------------------------------------------------------------------------------------
5l 5l
5m 5m
- -------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ITALICS indicate mortgage loans secured by multiple properties.
<TABLE>
<CAPTION>
Control Loan
No. Seller Number Property Name
========================================================================================================
<S> <C> <C> <C>
5n Lehman Brothers LG980424003N Van Deene Manor
5o Lehman Brothers LG980424003O Avon Place Condominiums
5p Lehman Brothers LG980424003P Coachlight Village
- --------------------------------------------------------------------------------------------------------
5l Lehman Brothers LG980424003Q Dean Estates
6 Lehman Brothers 971120012 The Bellevue
7 GMACCM GMAC3160 Citation Club Apartments
8 GMACCM GMAC2860 Ocean Towers Cooperative Apartments
9 GMACCM GMAC2850 Village Apartments/Corners Apartments
- --------------------------------------------------------------------------------------------------------
10 GMACCM GMAC3210 Gates of McLean Apartments
11 GMACCM GMAC2708 Uniprop - Jamaica Bay West
12 GMACCM GMAC2050 D'Amato Portfolio
12a GMACCM GMAC2050-A 16 Higgins Drive
12b GMACCM GMAC2050-AA 655-667 Plains Road
- --------------------------------------------------------------------------------------------------------
12c GMACCM GMAC2050-B 19 Higgins Drive
12d GMACCM GMAC2050-BB 187-207 Rock Lane
12e GMACCM GMAC2050-C 20 Higgins Drive
12f GMACCM GMAC2050-CC 301 Brewster Road
12g GMACCM GMAC2050-D 26 Higgins Drive
- --------------------------------------------------------------------------------------------------------
12h GMACCM GMAC2050-DD 517-531 New Haven Avenue
12I GMACCM GMAC2050-E 32 Higgins Drive
12j GMACCM GMAC2050-EE Lenihan Lumber
12k GMACCM GMAC2050-F 35 Higgins Drive
12l GMACCM GMAC2050-FF Liberty Square Plaza
- --------------------------------------------------------------------------------------------------------
12m GMACCM GMAC2050-G 36 Higgins Drive
12n GMACCM GMAC2050-GG 167 Commerce Drive
12o GMACCM GMAC2050-H 45 Higgins Drive
12p GMACCM GMAC2050-HH Taugwonk
12q GMACCM GMAC2050-I 49 Research Drive
- --------------------------------------------------------------------------------------------------------
12r GMACCM GMAC2050-II Stonington Shopping Center
12s GMACCM GMAC2050-J 58-60 Research Drive
12t GMACCM GMAC2050-JJ Beach Street Plaza
12u GMACCM GMAC2050-K 84 Research Drive
12v GMACCM GMAC2050-KK Ocean Plaza
- --------------------------------------------------------------------------------------------------------
12w GMACCM GMAC2050-L 116-136 Research Drive
12x GMACCM GMAC2050-LL Mill Pond Plaza
12y GMACCM GMAC2050-M 148-158 Research Drive
12z GMACCM GMAC2050-N 181-215 Research Drive
12aa GMACCM GMAC2050-O 225-249 Research Drive
- --------------------------------------------------------------------------------------------------------
12ab GMACCM GMAC2050-P Elgid Plaza
12ac GMACCM GMAC2050-Q Twin Lights Plaza
12ad GMACCM GMAC2050-R 858-878 Boston Post Road
12ae GMACCM GMAC2050-S 124-132 Pepe's Farm Road
12af GMACCM GMAC2050-T Coating Design Group
- --------------------------------------------------------------------------------------------------------
12ag GMACCM GMAC2050-U 215-217 Pepe's Farm Road
12ah GMACCM GMAC2050-V 230 Pepe's Farm Road
12ai GMACCM GMAC2050-W 183 Quarry Road
12aj GMACCM GMAC2050-X 230 Woodmont Road
12ak GMACCM GMAC2050-Y 282 Woodmont Road
- --------------------------------------------------------------------------------------------------------
13 Lehman Brothers 980120024 Crowne Plaza Hotel
14 GMACCM GMAC3000 Alternative Living Services, Inc.
14a GMACCM GMAC3000-A Sterling House of Augusta
14b GMACCM GMAC3000-B Sterling House of Woodland Terrace
14c GMACCM GMAC3000-C Sterling House of Broadmoor
- --------------------------------------------------------------------------------------------------------
14d GMACCM GMAC3000-D Crossings at The Palms
14e GMACCM GMAC3000-E Lake Park Villas
15 GMACCM GMAC2090 Peak Medical of Montana, Inc.
15a GMACCM GMAC2090-A Butte Convalescent Ctr/Montana Depen
15b GMACCM GMAC2090-B Colonial Manor at Deer Lodge
- --------------------------------------------------------------------------------------------------------
15c GMACCM GMAC2090-C Colonial Manor at Whitefish
15d GMACCM GMAC2090-D Missouri River Manor
15e GMACCM GMAC2090-E Saratoga Care Center
16 GMACCM GMAC2790 Latigo at Silverado Ranch Apartments
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Control
No. Property Type Address City
==================================================================================================================================
<S> <C> <C> <C>
5n Multifamily 51 Van Deene Avenue West Springfield
5o Multifamily 46 Avonwood Road Avon
5p Multifamily Belden Court Agawam
- ----------------------------------------------------------------------------------------------------------------------------------
5l Multifamily 383 Oaklawn Avenue Cranston
6 Mixed Use - Retail/Office/Hotel/Garage Broad and Walnut Streets Philadelphia
7 Multifamily 29540 Citation Circle Farmington Hill
8 Multifamily 201 Ocean Avenue Santa Monica
9 Multifamily 10 Lucas Lane/4103 Hamilton Drive Voorhees
- ----------------------------------------------------------------------------------------------------------------------------------
10 Multifamily 1510 Spring Gate Drive McLean
11 Multifamily - Mobile Home Park 15235 South Tamiami Trail Fort Myers
12 Industrial Various Various
12a Industrial 16 Higgins Drive Milford
12b Industrial 655-667 Plains Road Milford
- ----------------------------------------------------------------------------------------------------------------------------------
12c Industrial 19 Higgins Drive Milford
12d Industrial 187-207 Rock Lane Milford
12e Industrial 20 Higgins Drive Milford
12f Industrial 301 Brewster Road Milford
12g Industrial 26 Higgins Drive Milford
- ----------------------------------------------------------------------------------------------------------------------------------
12h Retail - Unanchored 517-531 New Haven Avenue Milford
12I Industrial 32 Higgins Drive Milford
12j Industrial 7 Industrial Drive Waterford
12k Industrial 35 Higgins Drive Milford
12l Retail - Unanchored 501 Boston Post Road Orange
- ----------------------------------------------------------------------------------------------------------------------------------
12m Industrial 36 Higgins Drive Milford
12n Industrial 167 Commerce Drive East Haven
12o Industrial 45 Higgins Drive Milford
12p Industrial 26-60 Taugwonk Road Stonington
12q Industrial 49 Research Drive Milford
- ----------------------------------------------------------------------------------------------------------------------------------
12r Retail - Unanchored 163-165 South Broad Street Stonington
12s Industrial 58-60 Research Drive Milford
12t Retail - Unanchored 49 Beach Street Westerly
12u Industrial 84 Research Drive Milford
12v Retail - Unanchored 62 Franklin Street Westerly
- ----------------------------------------------------------------------------------------------------------------------------------
12w Industrial 116-136 Research Drive Milford
12x Retail - Unanchored 105 Franklin Street Westerly
12y Industrial 148-158 Research Drive Milford
12z Industrial 181-215 Research Drive Milford
12aa Industrial 225-249 Research Drive Milford
- ----------------------------------------------------------------------------------------------------------------------------------
12ab Retail - Unanchored 120 Boston Post Road Milford
12ac Retail - Unanchored 746-764 Boston Post Road Milford
12ad Retail - Unanchored 858-878 Boston Post Road Milford
12ae Industrial 124-132 Pepe's Farm Road Milford
12af Industrial 165 Pepe's Farm Road Milford
- ----------------------------------------------------------------------------------------------------------------------------------
12ag Industrial 215-217 Pepe's Farm Road Milford
12ah Industrial 230 Pepe's Farm Road Milford
12ai Industrial 183 Quarry Road Milford
12aj Industrial 230 Woodmont Road Milford
12ak Industrial 282 Woodmont Road Milford
- ----------------------------------------------------------------------------------------------------------------------------------
13 Hotel - Full Service 1113 Sixth Street Seattle
14 Healthcare - Assisted Living Various Various
14a Healthcare - Assisted Living 1611 Fairway Drive Augusta
14b Healthcare - Assisted Living 1500 Terrace Avenue Liberal
14c Healthcare - Assisted Living 615 Southpointe Court Colorado Springs
- ----------------------------------------------------------------------------------------------------------------------------------
14d Healthcare - Assisted Living 25585 Van Leuven Loma Linda
14e Healthcare - Assisted Living 3524 Lake Boulevard Oceanside
15 Healthcare - Nursing Home, Skilled Care Various Various
15a Healthcare - Nursing Home, Skilled Care 2400-2500 Continental Drive Butte
15b Healthcare - Nursing Home, Skilled Care 1100 Texas Avenue Deer Lodge
- ----------------------------------------------------------------------------------------------------------------------------------
15c Healthcare - Nursing Home, Skilled Care 1305 E. Seventh St. Whitefish
15d Healthcare - Nursing Home, Skilled Care 1130 17th Avenue South Great Falls
15e Healthcare - Nursing Home, Skilled Care 207 East Holly Street Saratoga
16 Multifamily 2300 Silverado Ranch Blvd. Las Vegas
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial Mortgage
No. State Code Groups Balance ($) Balance ($) Balance Pool Balance Rate (%)
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5n MA 01089 6.5900
5o CT 06001 6.5900
5p MA 01001 6.5900
- -----------------------------------------------------------------------------------------------------------------------
5l RI 02920 6.5900
6 PA 19102 No 46,500,000 46,463,602 1.81 24.94 7.3300
7 MI 48331 No 45,200,000 45,200,000 1.76 26.70 6.6160
8 CA 90402 No 45,000,000 45,000,000 1.76 28.46 7.2700
9 NJ 08043 No 38,500,000 38,472,281 1.50 29.96 6.8600
- -----------------------------------------------------------------------------------------------------------------------
10 VA 22101 No 36,500,000 36,500,000 1.42 31.38 6.2800
11 FL 33908 No 30,000,000 30,000,000 1.17 32.55 6.3500
12 VAR Various No 28,500,000 28,470,701 1.11 33.66 7.3800
12a CT 06460
12b CT 06460
- -----------------------------------------------------------------------------------------------------------------------
12c CT 06460
12d CT 06460
12e CT 06460
12f CT 06460
12g CT 06460
- -----------------------------------------------------------------------------------------------------------------------
12h CT 06460
12I CT 06460
12j CT 06385
12k CT 06460
12l CT 06477
- -----------------------------------------------------------------------------------------------------------------------
12m CT 06460
12n CT 06512
12o CT 06460
12p CT 06378
12q CT 06460
- -----------------------------------------------------------------------------------------------------------------------
12r CT 06378
12s CT 06460
12t RI 02891
12u CT 06460
12v RI 02891
- -----------------------------------------------------------------------------------------------------------------------
12w CT 06460
12x RI 02891
12y CT 06460
12z CT 06460
12aa CT 06460
- -----------------------------------------------------------------------------------------------------------------------
12ab CT 06460
12ac CT 06460
12ad CT 06460
12ae CT 06460
12af CT 06460
- -----------------------------------------------------------------------------------------------------------------------
12ag CT 06460
12ah CT 06460
12ai CT 06460
12aj CT 06460
12ak CT 06460
- -----------------------------------------------------------------------------------------------------------------------
13 WA 98101 No 27,000,000 26,950,989 1.05 34.71 6.6600
14 VAR Various No 25,000,000 25,000,000 0.98 35.69 6.9800
14a KS 67010
14b KS 67901
14c CO 80906
- -----------------------------------------------------------------------------------------------------------------------
14d CA 92354
14e CA 92054
15 VAR Various No 24,696,000 24,642,722 0.96 36.65 7.6800
15a MT 59701
15b MT 59722
- -----------------------------------------------------------------------------------------------------------------------
15c MT 59937
15d MT 59405
15e WY 82331
16 NV 89123 No 23,040,000 23,023,619 0.90 37.55 6.9100
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Master Interest Original Remaining Term to Term to Original
Control Servicing Servicing Accrual Amortization Interest-Only Interest-Only Maturity Maturity Amortization
No. Fee Fee Method Type Period (Mos.) Period (Mos.) (Mos.) (Mos.) Term (Mos.)
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5n
5o
5p
- ---------------------------------------------------------------------------------------------------------------------------------
5l
6 Act/360 Balloon 0 0 120 119 324
7 30/360 Balloon 0 0 120 120 360
8 30/360 Interest Only...Fully Amortizing 7 7 300 300 293
9 Act/360 Balloon 0 0 120 119 360
- ---------------------------------------------------------------------------------------------------------------------------------
10 30/360 Interest Only 120 120 120 120 0
11 Act/360 Hyperamortizing 0 0 126 126 360
12 Act/360 Fully Amortizing 0 0 300 299 300
12a
12b
- ---------------------------------------------------------------------------------------------------------------------------------
12c
12d
12e
12f
12g
- ---------------------------------------------------------------------------------------------------------------------------------
12h
12I
12j
12k
12l
- ---------------------------------------------------------------------------------------------------------------------------------
12m
12n
12o
12p
12q
- ---------------------------------------------------------------------------------------------------------------------------------
12r
12s
12t
12u
12v
- ---------------------------------------------------------------------------------------------------------------------------------
12w
12x
12y
12z
12aa
- ---------------------------------------------------------------------------------------------------------------------------------
12ab
12ac
12ad
12ae
12af
- ---------------------------------------------------------------------------------------------------------------------------------
12ag
12ah
12ai
12aj
12ak
- ---------------------------------------------------------------------------------------------------------------------------------
13 Act/360 Balloon 0 0 120 119 240
14 Act/360 Balloon 0 0 120 120 300
14a
14b
14c
- ---------------------------------------------------------------------------------------------------------------------------------
14d
14e
15 Act/360 Balloon 0 0 120 118 300
15a
15b
- ---------------------------------------------------------------------------------------------------------------------------------
15c
15d
15e
16 Act/360 Balloon 0 0 120 119 360
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Remaining Underwritten
Control Amortization Origination Maturity Balloon Annual Net
No. Term (Mos.) Date or ARD Balance ($) Prepayment Provisions Debt Service ($) Cash Flow ($)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
5n
5o
5p
- -----------------------------------------------------------------------------------------------------------------------------------
5l
6 323 6/15/98 7/1/08 39,115,070 L(4),D(5.75),O(.25) 3,958,839 5,363,904
7 360 7/14/98 8/10/08 38,429,649 L(2),D(7.25),O(.75) 3,469,820 4,457,103
8 293 7/21/98 8/10/23 - L(2),D(22.5),O(.5) 3,943,362 6,021,704
9 359 6/29/98 7/1/08 33,009,614 L(2.083),D(7.417),O(.5) 3,061,766 3,824,682
- -----------------------------------------------------------------------------------------------------------------------------------
10 0 7/30/98 8/10/08 36,500,000 1(9.5),O(.5) 2,292,200 5,681,113
11 360 7/13/98 2/10/09 25,087,370 L(2),D(7.75),O(.75) 2,261,963 4,171,868
12 299 7/8/98 7/10/23 - L(2.083),D(22.417),O(.5) 2,525,003 3,077,885
12a
12b
- -----------------------------------------------------------------------------------------------------------------------------------
12c
12d
12e
12f
12g
- -----------------------------------------------------------------------------------------------------------------------------------
12h
12I
12j
12k
12l
- -----------------------------------------------------------------------------------------------------------------------------------
12m
12n
12o
12p
12q
- -----------------------------------------------------------------------------------------------------------------------------------
12r
12s
12t
12u
12v
- -----------------------------------------------------------------------------------------------------------------------------------
12w
12x
12y
12z
12aa
- -----------------------------------------------------------------------------------------------------------------------------------
12ab
12ac
12ad
12ae
12af
- -----------------------------------------------------------------------------------------------------------------------------------
12ag
12ah
12ai
12aj
12ak
- -----------------------------------------------------------------------------------------------------------------------------------
13 239 6/16/98 7/1/08 18,156,101 L(4),D(5.75),O(.25) 2,446,273 4,565,075
14 300 7/30/98 8/1/08 19,705,141 L(2),D(7.5),O(.5) 2,136,110 3,587,585
14a
14b
14c
- -----------------------------------------------------------------------------------------------------------------------------------
14d
14e
15 298 5/29/98 6/1/08 19,840,970 L(2.167),D(7.333),O(.5) 2,246,774 3,316,000
15a
15b
- -----------------------------------------------------------------------------------------------------------------------------------
15c
15d
15e
16 359 6/29/98 7/1/08 19,777,969 L(2),D(7.5),O(.5) 1,841,706 2,245,208
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten Cut-off Scheduled Sq. Ft, Units
Control NCF Appraised Appraisal Date Maturity or ARD Year Year Beds, Pads
No. DSCR (x) Value ($) Date LTV (%) Date LTV(%) Built Renovated or Rooms
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5n 5,150,000 4/22/98 1970 N/A 111 Units
5o 10,000,000 5/14/98 1973 N/A 188 Units
5p 3,820,000 4/22/98 1966 N/A 88 Units
- ------------------------------------------------------------------------------------------------------------------------------------
5l 2,075,000 4/21/98 1970 N/A 48 Units
6 1.35 65,100,000 5/1/98 71.4 60.1 1902/1904 1911, 1989 796,480 Sq Ft
7 1.28 56,500,000 6/1/98 80.0 68.0 1989-1996 N/A 600 Units
8 1.53 85,000,000 2/12/98 52.9 0.0 1971 1998 317 Units
9 1.25 48,250,000 6/1/98 79.7 68.4 1980/1981 Ongoing 856 Units
- ------------------------------------------------------------------------------------------------------------------------------------
10 2.48 75,800,000 6/30/98 48.2 48.2 1997/1998 N/A 624 Units
11 1.84 50,000,000 5/1/98 60.0 50.2 1972 1995 1,417 Pads
12 1.22 40,910,000 69.6 0.0 Various N/A 719,972 Sq Ft
12a 200,000 4/30/98 1976 1987 4,000 Sq Ft
12b 2,050,000 4/30/98 1971/77 1987 41,500 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
12c 120,000 4/30/98 1983 N/A 2,400 Sq Ft
12d 450,000 4/30/98 1977 N/A 9,620 Sq Ft
12e 200,000 4/30/98 1983 N/A 4,000 Sq Ft
12f 800,000 4/30/98 1976 N/A 18,000 Sq Ft
12g 235,000 4/30/98 1983 N/A 4,000 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
12h 580,000 4/30/98 1967/1968 N/A 7,032 Sq Ft
12I 190,000 4/30/98 1983 N/A 3,200 Sq Ft
12j 930,000 4/30/98 1988 N/A 14,000 Sq Ft
12k 330,000 4/30/98 1983 N/A 6,000 Sq Ft
12l 2,700,000 4/30/98 1988 N/A 28,800 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
12m 200,000 4/30/98 1983 N/A 4,000 Sq Ft
12n 770,000 4/30/98 1985 N/A 14,000 Sq Ft
12o 210,000 4/30/98 1984 N/A 4,625 Sq Ft
12p 2,460,000 4/30/98 1985/1995 N/A 45,200 Sq Ft
12q 1,150,000 4/30/98 1985 N/A 23,000 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
12r $ 800,000 4/30/98 1975/1984 N/A 14,200 Sq Ft
12s 1,400,000 4/30/98 1986 N/A 23,400 Sq Ft
12t 470,000 4/30/98 1974 N/A 9,600 Sq Ft
12u 720,000 4/30/98 1987 N/A 11,925 Sq Ft
12v 1,270,000 4/30/98 1984 N/A 19,200 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
12w 2,700,000 4/30/98 1986 N/A 42,800 Sq Ft
12x 2,170,000 4/30/98 1985 N/A 24,800 Sq Ft
12y 1,300,000 4/30/98 1986 N/A 21,600 Sq Ft
12z 2,200,000 4/30/98 1986 N/A 44,400 Sq Ft
12aa 2,600,000 4/30/98 1988 N/A 46,400 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
12ab 860,000 4/30/98 1971/1980 1980 11,600 Sq Ft
12ac 575,000 4/30/98 1964/1967 UAV 7,550 Sq Ft
12ad 880,000 4/30/98 1950/1968 N/A 10,400 Sq Ft
12ae 950,000 4/30/98 1986 N/A 20,000 Sq Ft
12af 480,000 4/30/98 1984 N/A 11,000 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
12ag 1,400,000 4/30/98 1985 N/A 36,000 Sq Ft
12ah 1,300,000 4/30/98 1984 N/A 25,600 Sq Ft
12ai 560,000 4/30/98 1986 N/A 8,220 Sq Ft
12aj 2,550,000 4/30/98 1979 N/A 56,200 Sq Ft
12ak 2,150,000 4/30/98 1980 N/A 41,700 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
13 1.87 48,500,000 5/1/98 55.6 37.4 1980 N/A 415 Rooms
14 1.68 33,500,000 74.6 58.8 Various Various 386 Units
14a 1,400,000 6/1/98 1991 N/A 21 Units
14b 3,300,000 6/1/98 1994 N/A 44 Units
14c 3,100,000 6/1/98 1996 N/A 37 Units
- ------------------------------------------------------------------------------------------------------------------------------------
14d 9,800,000 6/1/98 1986 N/A 135 Units
14e 15,900,000 6/1/98 1989 N/A 149 Units
15 1.48 28,690,000 85.9 69.2 Various Various 618 Beds
15a 7,390,000 4/16/98 1958 & 1972 1990 176 Beds
15b 2,600,000 4/16/98 1973 N/A 60 Beds
- ------------------------------------------------------------------------------------------------------------------------------------
15c 2,400,000 4/16/98 1972 1998 60 Beds
15d 14,500,000 4/16/98 1961 1989 278 Beds
15e 1,800,000 5/13/98 1975 1986 44 Beds
16 1.31 28,800,000 5/1/98 74.6 64.2 1997 N/A 400 Units
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cut-off
Sq. Ft, Unit Replacement Annual
Control Bed, Pad Occupancy Occupancy Ownership Reserve TI/LC
No. or Room ($) Percentage (%) Date Interest Deposit Deposit
=======================================================================================================
<S> <C> <C> <C> <C> <C> <C>
5n 98.2 3/17/98 - -
5o 98.6 3/25/98 - -
5p 98.9 3/23/98 - -
- -------------------------------------------------------------------------------------------------------
5l 95.8 3/31/98 - -
6 58.34 86.0 3/31/98 Fee Simple 80,025 384,418
7 75,333.33 97.0 6/1/98 Fee Simple - -
8 141,955.84 0.0 2/12/98 Fee Simple - -
9 44,944.25 96.0 6/17/98 Fee Simple 213,996 -
- -------------------------------------------------------------------------------------------------------
10 58,493.59 97.0 7/6/98 Fee Simple - -
11 21,171.49 100.0 4/25/98 Fee Simple - -
12 39.54 95.3 Fee Simple 107,000 150,000
12a 100.0 6/24/98 - -
12b 98.0 6/24/98 - -
- -------------------------------------------------------------------------------------------------------
12c 100.0 6/24/98 - -
12d 91.0 6/24/98 - -
12e 100.0 6/24/98 - -
12f 100.0 6/24/98 - -
12g 100.0 6/24/98 - -
- -------------------------------------------------------------------------------------------------------
12h 100.0 6/24/98 - -
12I 100.0 6/24/98 - -
12j 100.0 6/24/98 - -
12k 100.0 6/24/98 - -
12l 93.0 6/24/98 - -
- -------------------------------------------------------------------------------------------------------
12m 100.0 6/24/98 - -
12n 100.0 6/24/98 - -
12o 100.0 6/24/98 - -
12p 86.0 6/24/98 - -
12q 100.0 6/24/98 - -
- -------------------------------------------------------------------------------------------------------
12r 100.0% 6/24/98 $ - $ -
12s 100.0 6/24/98 - -
12t 100.0 6/24/98 - -
12u 100.0 6/24/98 - -
12v 100.0 6/24/98 - -
- -------------------------------------------------------------------------------------------------------
12w 98.0 6/24/98 - -
12x 87.0 6/24/98 - -
12y 100.0 6/24/98 - -
12z 100.0 6/24/98 - -
12aa 100.0 6/24/98 - -
- -------------------------------------------------------------------------------------------------------
12ab 100.0 6/24/98 - -
12ac 100.0 6/24/98 - -
12ad 100.0 6/24/98 - -
12ae 100.0 6/24/98 - -
12af 100.0 6/24/98 - -
- -------------------------------------------------------------------------------------------------------
12ag 100.0 6/24/98 - -
12ah 66.0 6/24/98 - -
12ai 100.0 6/24/98 - -
12aj 92.0 6/24/98 - -
12ak 85.0 6/24/98 - -
- -------------------------------------------------------------------------------------------------------
13 64,942.14 81.9 3/31/98 Leasehold 688,248 -
14 64,766.84 94.3 Fee Simple - -
14a 95.0 3/31/98 - -
14b 100.0 3/31/98 - -
14c 100.0 6/1/98 - -
- -------------------------------------------------------------------------------------------------------
14d 100.0 4/23/98 - -
14e 86.0 6/4/98 - -
15 39,874.95 93.4 Fee Simple & Leasehold - -
15a 98.0 5/18/98 - -
15b 93.0 5/19/98 - -
- -------------------------------------------------------------------------------------------------------
15c 99.0 2/28/98 - -
15d 89.0 5/20/98 - -
15e 95.0 5/13/98 - -
16 57,559.05 95.0 6/1/98 Fee Simple 64,400 -
- -------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Largest Tenant
Control Tenant Area Lease Exp. Control
No. Largest Tenant Name Leased (Sq. Ft.) Date No.
=====================================================================================
<S> <C> <C> <C> <C>
5n 5n
5o 5o
5p 5p
- -------------------------------------------------------------------------------------
5l 5l
6 The Sporting Club 93,000 6
7 7
8 8
9 9
- -------------------------------------------------------------------------------------
10 10
11 11
12 12
12a Chimaera 4,000 2/28/01 12a
12b Mutual Stamping & Mfg. 5,000 11/30/98 12b
- -------------------------------------------------------------------------------------
12c Connecticut Piano Repair 2,400 6/30/98 12c
12d Nick Zavalishin Studio 1,680 3/31/99 12d
12e Dist. Publications 4,000 10/31/99 12e
12f L.W. Seecamp 4,000 10/31/99 12f
12g Ockman Instruments 4,000 11/30/98 12g
- -------------------------------------------------------------------------------------
12h Baker's Bar & Grill 3,200 11/30/02 12h
12I Betson Enterprises 3,200 9/30/98 12I
12j Lenihan Lumber 14,000 7/31/98 12j
12k New England Stones 6,000 8/31/98 12k
12l Rudi's Pottery Mart 2,400 7/31/98 12l
- -------------------------------------------------------------------------------------
12m Anglo Precision Mold 4,000 12/31/98 12m
12n Tak-Motive, Inc. 14,000 9/30/00 12n
12o Carruba 4,625 0 12o
12p Thames Record Management 11,200 11/30/98 12p
12q Floor Plus, LLC. 11,500 9/30/02 12q
- -------------------------------------------------------------------------------------
12r Henry's Place 2,800 12/31/98 12r
12s Data Signal Corportion 11,850 6/30/01 12s
12t Pizza Pazza 2,000 8/31/99 12t
12u Sonic & Thermal Technologies 6,000 10/31/99 12u
12v Westerly Acquarium 2,400 6/30/98 12v
- -------------------------------------------------------------------------------------
12w Accusync Medical Research Grou 4,800 9/30/98 12w
12x Village Uniform 3,200 7/31/98 12x
12y First Security Services Corp. 3,200 3/31/99 12y
12z Smart/Nextel 6,000 1/31/99 12z
12aa Dentek, Inc. 4,800 8/31/98 12aa
- -------------------------------------------------------------------------------------
12ab Hamilton Mfg. Corp. 2,400 7/31/98 12ab
12ac Cerda Enterprises 2,250 6/30/98 12ac
12ad Bella Napoli Pizza 3,200 7/31/01 12ad
12ae Evax Systems 2,800 12/31/98 12ae
12af Coating Design Group 11,000 4/30/99 12af
- -------------------------------------------------------------------------------------
12ag Plastic Tool Systems 12,000 6/30/99 12ag
12ah Mercury Tool & Mold 8,000 12/31/98 12ah
12ai D-Amato 8,220 12/31/98 12ai
12aj Kev-Eri, Inc. 6,000 7/31/98 12aj
12ak T.M. Precisions 3,300 9/30/98 12ak
- -------------------------------------------------------------------------------------
13 13
14 14
14a 14a
14b 14b
14c 14c
- -------------------------------------------------------------------------------------
14d 14d
14e 14e
15 15
15a 15a
15b 15b
- -------------------------------------------------------------------------------------
15c 15c
15d 15d
15e 15e
16 16
- -------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ITALICS indicate mortgage loans secured by multiple properties.
<TABLE>
<CAPTION>
Control Loan
No. Seller Number Property Name
========================================================================================================
<S> <C> <C> <C>
17 GMACCM GMAC2100 El Monte Shopping Center
- --------------------------------------------------------------------------------------------------------
18 Lehman Brothers 980225101 50 West 23rd Street
19 Lehman Brothers 971229007 150-56 Broadway
20 Lehman Brothers 970930028 Copper Sands Apartments
21 GMACCM GMAC2709 Uniprop - Pennwood Crossing
22 GMACCM GMAC3320 Manzanita Gate Apartments
- --------------------------------------------------------------------------------------------------------
23 Lehman Brothers 970815023 Livingston Retail Center
24 GMACCM GMAC2110 Wellington Apartments
25 Lehman Brothers 971203045 Sinclair Road Distribution Center
26 Lehman Brothers 980120063 University Plaza Shopping Center
27 GMACCM GMAC2702 Uniprop - Boulder Meadows
- --------------------------------------------------------------------------------------------------------
28 Lehman Brothers 980309002 Posada Vallarta Apartments
29 GMACCM GMAC2970 Brandywine - Laurelton Village
30 GMACCM GMAC2120 Hampton Plaza Healthcare Center
31 GMACCM GMAC1060 Beckstrand-Healthrider Building
32 GMACCM GMAC1070 Greenwood Inn
- --------------------------------------------------------------------------------------------------------
33 GMACCM GMAC2960 Brandywine - Bey Lea Village
34 GMACCM GMAC2040 Westchester Shopping Center
35 GMACCM GMAC1080 Saratoga Apartments
36 GMACCM GMAC1090 Breckenridge Shopping Center
37 GMACCM GMAC2910 Waterloo Place Apartments
- --------------------------------------------------------------------------------------------------------
38 GMACCM GMAC2990 Brandywine-Whiting Health Care Center
39 GMACCM GMAC3010 Marlton Crossing Shopping Center Phase I
40 Lehman Brothers 971203044 Residence Inn by Marriott
41 Lehman Brothers 980317060 Cherokee Plaza Shopping Center
42 GMACCM GMAC2130 River Oaks Apartments
- --------------------------------------------------------------------------------------------------------
43 GMACCM GMAC2980 Brandywine - Meadowview Nursing
44 Lehman Brothers 980701999 Sam's Wholesale Club
45 GMACCM GMAC1120 La Mesa Gateway Center
46 GMACCM GMAC1690 Simi Valley Business Center
47 Lehman Brothers 970806038 ESAB Corporation
- --------------------------------------------------------------------------------------------------------
48 GMACCM GMAC2140 K-Mart (Maui, Hawaii)
49 GMACCM GMAC2830 Pontiac Place
50 Lehman Brothers 980601999C Circuit City (Property Level)
51 GMACCM GMAC1160 The Hallmark Suites Hotel
52 Lehman Brothers 980317020 Yaohan Plaza
- --------------------------------------------------------------------------------------------------------
53 Lehman Brothers 970430020 Campus Plaza Shopping Center
54 Lehman Brothers 980317023 Heritage Vista Apartments
55 GMACCM GMAC2150 Harmon Meadow Plaza
56 Lehman Brothers 980127026 Tab Warehouse
57 Lehman Brothers 971120044 Executive Centre at Hooks Lane
- --------------------------------------------------------------------------------------------------------
58 Lehman Brothers 980204038 New Harbour Mall
59 GMACCM GMAC1170 Dubuque Five Flags Holiday Inn
60 GMACCM GMAC2707 Highland Manor Manufactured Homes
61 GMACCM GMAC1930 Grand Summit Hotel
62 Lehman Brothers 980401055 Hartford Run Apartments
- --------------------------------------------------------------------------------------------------------
63 Lehman Brothers 980120025 Courtyard By Marriott
64 GMACCM GMAC2780 Lynnhaven Nursing Center
65 Lehman Brothers 970917031 Abbot Road Plaza
66 Lehman Brothers 980211020 Fountains of Plantation Office Park
67 Lehman Brothers 971217054 Cherry Hill Townhouses
- --------------------------------------------------------------------------------------------------------
68 Lehman Brothers 980601999D Circuit City (Property Level)
69 GMACCM GMAC3310 Redford Park Apartments
70 Lehman Brothers 980225049 Grand Plaza
71 Lehman Brothers 970930032 Light Industrial Building (30 Pulaski)
72 Lehman Brothers 980601999B Circuit City (Property Level)
- --------------------------------------------------------------------------------------------------------
73 GMACCM GMAC1200 Sun Trust Building
74 Lehman Brothers 971107001 Georgetown Plaza Shopping Center
75 Lehman Brothers 971203031 Oaks of Westchase Apartments
76 GMACCM GMAC2810 Mountain View Child Care Center
77 Lehman Brothers 980211015 Executive Center (Exec.Center-Loan Level)
- --------------------------------------------------------------------------------------------------------
77a Lehman Brothers 980211015A Miramar Executive Center (Exec.Center-Prop. Level)
77b Lehman Brothers 980211015B Senator Executive & Law Center(Exec.Center-Prop. Level)
77c Lehman Brothers 980211015C Hollywood Executive Center (Exec.Center-Prop. Level)
77d Lehman Brothers 980211015D 163rd Street Executive Center (Exec.Center-Prop. Level)
78 Lehman Brothers 980422022 Hamburg Plaza
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Control
No. Property Type Address City
==================================================================================================================================
<S> <C> <C> <C>
17 Retail - Anchored 3500-3610 Peck Road El Monte
- ----------------------------------------------------------------------------------------------------------------------------------
18 Office 50 West 23rd Street New York
19 Office 150-56 Broadway New York
20 Multifamily 8101 West Flamingo Road Las Vegas
21 Multifamily - Mobile Home Park 1201 Adler Drive Morrisville
22 Multifamily 2475 Robb Drive Reno
- ----------------------------------------------------------------------------------------------------------------------------------
23 Retail - Anchored Route 10 and Daven Avenue Livingston
24 Multifamily South 50th Street & E.P. True Pkwy West Des Moines
25 Office 5156-5178 Sinclair Road & 800-1050 Freeway
Drive North Columbus
26 Retail - Anchored SW Corner of Route 273 & Chapman Road White Clay Creek Hundred
27 Multifamily - Mobile Home Park 4500 Nineteenth Street Boulder
- ----------------------------------------------------------------------------------------------------------------------------------
28 Multifamily 10002 North 7th Street Phoenix
29 Healthcare - Nursing Home, Skilled Care 475 Jack Martin Boulevard Brick Touwnship
30 Healthcare - Nursing Home, Skilled Care 9777 Greenwood Road Niles
31 Office 6322 South 3000 East Salt Lake City
32 Hotel - Full Service 10550 SW Allen Boulevard Beaverton
- ----------------------------------------------------------------------------------------------------------------------------------
33 Healthcare - Nursing Home, Skilled Care 1351 Old Freehold Road Toms River
34 Retail - Anchored 8571 Coral Way Miami
35 Multifamily 4601 Connecticut Avenue, NW Washington
36 Retail - Anchored 12640-12810 Jefferson Davis Highway Chesterfield County
37 Multifamily 649 N.Saint Paul Street Baltimore
- ----------------------------------------------------------------------------------------------------------------------------------
38 Healthcare - Nursing Home, Skilled Care 3000 Hilltop Road Whiting
39 Retail - Anchored 101 NJ Route 73 East Marlton
40 Hotel - Limited Service 14419 Firestone Boulevard La Mirada
41 Retail - Anchored 3871 Peachtree Road Atlanta
42 Multifamily 801 Valley Circle Drive Saline
- ----------------------------------------------------------------------------------------------------------------------------------
43 Healthcare - Nursing Home, Skilled Care 1328 Blackhorse Pike Williamstown
44 CTL - Retail 301 Barber St. Worcester
45 Retail - Anchored 8005-8285 Fletcher Parkway LaMesa
46 Industrial 2635-2685 Park Center Drive Simi Valley
47 Industrial 1500 Karen Lane and 801 Wilson Avenue Penn Township
- ----------------------------------------------------------------------------------------------------------------------------------
48 CTL - Retail 424 Dairy Road Kahului, Maui
49 Office 140 South Saginaw Pontiac
50 CTL - Retail 24001 El Toro Road Laguna Hills
51 Hotel - Limited Service 11260 Point East Drive Rancho Cordova
52 Retail - Anchored 100 East Algonquin Road Arlington Heights
- ----------------------------------------------------------------------------------------------------------------------------------
53 Retail - Anchored 3701 Vestal Parkway East Vestal
54 Multifamily 532 College Drive Henderson
55 Retail - Anchored 455 Harmon Meadow Boulevard Secaucus
56 Industrial 13050 Marlay Avenue Fontana
57 Office 2 Reservoir Circle Pikesville
- ----------------------------------------------------------------------------------------------------------------------------------
58 Retail - Anchored Routes 24 & 81 Fall River
59 Hotel - Full Service 450 Main Street Dubuque
60 Multifamily - Mobile Home Park 10 Malibu Drive Madison
61 Hotel - Full Service 570 Springfield Avenue Summit
62 Multifamily 102 Hartford Run Buford
- ----------------------------------------------------------------------------------------------------------------------------------
63 Hotel - Limited Service 370 North Route 83 Elmhurst
64 Healthcare - Nursing Home, Skilled Care 3030 Fig Street Corpus Christi
65 Retail - Anchored 1234 Abbott Road Lackawanna
66 Office 1200-1380 N. University Drive Plantation
67 Multifamily 2501 Cherry Hill Drive Poughkeepsie
- ----------------------------------------------------------------------------------------------------------------------------------
68 CTL - Retail 2800 SW 196th Street Lynwood
69 Multifamily 808 Gladstell Street Conroe
70 Office 106 Grand Avenue Englewood
71 Industrial 30 Pulaski Street Bayonne
72 CTL - Retail 4071 Miller Road Flint
- ----------------------------------------------------------------------------------------------------------------------------------
73 Office 220 West Garden Street Pensacola
74 Retail - Unanchored 4873 West 38th Street Indianapolis
75 Multifamily 2851 Wallingford Houston
76 Healthcare - Nursing Home, Skilled Care 1720 Mountain View Avenue San Bernardino
77 Office Various Various
- ----------------------------------------------------------------------------------------------------------------------------------
77a Office 3600 S. State Road 7 (US Highway 441) Hallandale
77b Office 13899 Biscayne Boulevard North Miami Beach
77c Office 1001 N. Federal Highway Hallandale
77d Office 16300 N.E. 19th Avenue North Miami Beach
78 Retail - Anchored 5999 South Park Hamburg
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial Mortgage
No. State Code Groups Balance ($) Balance ($) Balance Pool Balance Rate (%)
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
17 CA 91731 No 21,465,000 21,465,000 0.84 38.38 6.9000
- -----------------------------------------------------------------------------------------------------------------------
18 NY 10010 No 21,000,000 21,000,000 0.82 39.20 7.3300
19 NY 10038 No 21,000,000 20,958,730 0.82 40.02 7.2200
20 NV 89117 No 20,398,996 20,369,613 0.79 40.81 7.2170
21 PA 19067 No 19,000,000 19,000,000 0.74 41.56 6.3500
22 NV 89523 No 18,900,000 18,900,000 0.74 42.29 7.1250
- -----------------------------------------------------------------------------------------------------------------------
23 NJ 07039 No 18,400,000 18,361,581 0.72 43.01 6.9900
24 IA 50265 No 18,250,000 18,221,009 0.71 43.72 7.0000
25 OH 43229 No 16,750,000 16,706,602 0.65 44.37 7.4800
26 DE 19702 No 15,800,000 15,790,536 0.62 44.99 7.1400
27 CO 80304 No 15,000,000 15,000,000 0.59 45.57 6.3500
- -----------------------------------------------------------------------------------------------------------------------
28 AZ 85020 No $ 15,000,000 $ 14,978,305 0.58% 46.16% 7.0100%
29 NJ 08724 Brandywine 14,417,927 14,403,335 0.56 46.72 7.4600
30 IL 60714 No 14,400,000 14,385,965 0.56 47.28 7.6500
31 UT 84121 No 14,300,000 14,290,138 0.56 47.84 7.0300
32 OR 97205 Yes(G INN LLC) 14,000,000 13,939,592 0.54 48.38 7.7200
- -----------------------------------------------------------------------------------------------------------------------
33 NJ 08754 Brandywine 13,765,263 13,751,332 0.54 48.92 7.4600
34 FL 33155 No 13,500,000 13,500,000 0.53 49.44 7.1700
35 DC 20008 No 13,000,000 12,969,890 0.51 49.95 6.9550
36 VA 23831 No 12,600,000 12,562,050 0.49 50.44 7.2900
37 MD 21202 No 12,500,000 12,491,113 0.49 50.93 6.9100
- -----------------------------------------------------------------------------------------------------------------------
38 NJ 08759 Brandywine 12,500,000 12,487,350 0.49 51.41 7.4600
39 NJ 08053 No 11,650,000 11,650,000 0.45 51.87 6.8500
40 CA 90638 No 11,000,000 10,977,477 0.43 52.30 7.5800
41 GA 30319 No 10,800,000 10,792,577 0.42 52.72 6.6800
42 MI 48176 No 10,500,000 10,492,932 0.41 53.13 7.1250
- -----------------------------------------------------------------------------------------------------------------------
43 NJ 08094 Brandywine 10,500,000 10,489,374 0.41 53.53 7.4600
44 MA 01606 No 11,508,496 10,445,688 0.41 53.94 6.5900
45 CA 91942 No 10,150,000 10,150,000 0.40 54.34 6.9900
46 CA 93065 No 9,275,000 9,261,079 0.36 54.70 7.4600
47 PA 17331 No 9,250,000 9,222,323 0.36 55.06 7.5500
- -----------------------------------------------------------------------------------------------------------------------
48 HI 96732 No 9,220,000 9,220,000 0.36 55.42 7.1400
49 MI 48342 No 8,700,000 8,700,000 0.34 55.76 7.2500
50 CA 92653 No 8,696,443 8,436,432 0.33 56.09 7.9600
51 CA 94195 No 8,400,000 8,335,649 0.33 56.41 7.8750
52 IL 60005 No 8,250,000 8,239,541 0.32 56.73 7.5400
- -----------------------------------------------------------------------------------------------------------------------
53 NY 13850 No 8,200,000 8,200,000 0.32 57.05 7.2400
54 NV 89015 No 8,000,000 7,983,940 0.31 57.36 7.1400
55 NJ 08830 No 7,800,000 7,800,000 0.30 57.67 7.1300
56 CA 92337 No 7,750,000 7,735,728 0.30 57.97 7.4600
57 MD 21208 No 7,700,000 7,700,000 0.30 58.27 7.1500
- -----------------------------------------------------------------------------------------------------------------------
58 MA 02721 No 7,600,000 7,585,064 0.30 58.57 7.2200
59 IA 52001 No 7,600,000 7,584,785 0.30 58.86 8.1250
60 WI 53713 No 7,500,000 7,500,000 0.29 59.16 6.3500
61 NJ 07901 No 7,500,000 7,492,092 0.29 59.45 7.2500
62 GA 30518 No 7,504,000 7,488,494 0.29 59.74 7.0300
- -----------------------------------------------------------------------------------------------------------------------
63 IL 60126 No 7,500,000 7,474,244 0.29 60.03 7.4600
64 TX 78404 No 6,840,000 6,833,466 0.27 60.30 7.7500
65 NY 14218 No 6,785,000 6,781,591 0.26 60.56 7.6800
66 FL 33322 No 6,800,000 6,770,516 0.26 60.83 7.3100
67 NY 12603 No 6,750,000 6,745,767 0.26 61.09 6.9900
- -----------------------------------------------------------------------------------------------------------------------
68 WA 98038 No 6,917,625 6,710,798 0.26 61.35 7.9600
69 TX 77304 No 6,600,000 6,600,000 0.26 61.61 7.0100
70 NJ 07631 No 6,600,000 6,596,059 0.26 61.87 7.1500
71 NJ 07002 No 6,600,000 6,587,099 0.26 62.12 7.2400
72 MI 48507 No 6,719,978 6,519,060 0.25 62.38 7.9600
- -----------------------------------------------------------------------------------------------------------------------
73 FL 32501 No $ 6,450,000 $ 6,430,493 0.25% 62.63% 7.2700%
74 IN 46254 No 6,400,000 6,386,497 0.25 62.88 6.9500
75 TX 77042 No 6,375,000 6,342,342 0.25 63.12 7.2800
76 CA 92354 No 6,200,000 6,193,833 0.24 63.37 8.3400
77 FL Various No 6,200,000 6,186,592 0.24 63.61 7.2900
- -----------------------------------------------------------------------------------------------------------------------
77a FL 33023 7.2900
77b FL 33162 7.2900
77c FL 33009 7.2900
77d FL 33162 7.2900
78 NY 14075 No 6,000,000 5,996,902 0.23 63.84 7.6000
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Master Interest Original Remaining Term to Term to Original
Control Servicing Servicing Accrual Amortization Interest-Only Interest-Only Maturity Maturity Amortization
No. Fee Fee Method Type Period (Mos.) Period (Mos.) (Mos.) (Mos.) Term (Mos.)
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
17 Act/360 Balloon 0 0 120 120 360
- ---------------------------------------------------------------------------------------------------------------------------------
18 Act/360 IA 49 48 109 108 300
19 Act/360 Balloon 0 0 180 177 360
20 Act/360 Hyperamortizing 0 0 114 112 354
21 Act/360 Hyperamortizing 0 0 126 126 360
22 Act/360 Balloon 0 0 180 180 360
- ---------------------------------------------------------------------------------------------------------------------------------
23 Act/360 Balloon 0 0 180 177 360
24 Act/360 Balloon 0 0 120 118 360
25 Act/360 Hyperamortizing 0 0 120 116 360
26 Act/360 Balloon 0 0 120 119 360
27 Act/360 Balloon 0 0 126 126 360
- ---------------------------------------------------------------------------------------------------------------------------------
28 Act/360 Balloon 0 0 120 118 360
29 Act/360 Balloon 0 0 120 119 300
30 Act/360 Balloon 0 0 120 119 300
31 Act/360 Balloon 0 0 120 119 360
32 Act/360 Hyperamortizing 0 0 183 179 300
- ---------------------------------------------------------------------------------------------------------------------------------
33 Act/360 Balloon 0 0 120 119 300
34 Act/360 Balloon 0 0 84 84 360
35 Act/360 Balloon 0 0 240 237 360
36 Act/360 Balloon 0 0 120 116 360
37 Act/360 Balloon 0 0 120 119 360
- ---------------------------------------------------------------------------------------------------------------------------------
38 Act/360 Balloon 0 0 120 119 300
39 Act/360 Interest Only Amortizing Balloon 60 59 120 119 300
40 Act/360 Balloon 0 0 120 118 300
41 Act/360 Balloon 0 0 120 118 360
42 Act/360 Balloon 0 0 120 119 360
- ---------------------------------------------------------------------------------------------------------------------------------
43 Act/360 Balloon 0 0 120 119 300
44 30/360 Balloon 0 0 206 175 208
45 30/360 Balloon 0 0 120 120 288
46 30/360 Balloon 0 0 120 118 360
47 Act/360 Balloon 0 0 84 81 300
- ---------------------------------------------------------------------------------------------------------------------------------
48 Act/360 Step 0 0 180 180 244
49 Act/360 Balloon 0 0 120 120 360
50 30/360 Fully Amortizing 0 0 264 244 264
51 30/360 Hyperamortizing 0 0 240 233 300
52 Act/360 Balloon 0 0 120 118 360
- ---------------------------------------------------------------------------------------------------------------------------------
53 Act/360 Balloon 0 0 120 120 360
54 Act/360 Balloon 0 0 120 117 360
55 Act/360 Balloon 0 0 120 120 300
56 Act/360 Balloon 0 0 120 117 360
57 Act/360 Balloon 0 0 120 120 360
- ---------------------------------------------------------------------------------------------------------------------------------
58 Act/360 Balloon 0 0 120 117 360
59 Act/360 Hyperamortizing 0 0 123 121 300
60 Act/360 Hyperamortizing 0 0 126 126 360
61 Act/360 Hyperamortizing 0 0 122 121 300
62 Act/360 Balloon 0 0 120 117 360
- ---------------------------------------------------------------------------------------------------------------------------------
63 Act/360 Balloon 0 0 120 118 240
64 Act/360 Balloon 0 0 180 179 300
65 Act/360 Balloon 0 0 84 83 360
66 Act/360 Balloon 0 0 120 116 300
67 Act/360 Balloon 0 0 120 119 360
- ---------------------------------------------------------------------------------------------------------------------------------
68 30/360 Fully Amortizing 0 0 264 244 264
69 Act/360 Balloon 0 0 120 120 360
70 Act/360 Balloon 0 0 120 119 360
71 Act/360 Hyperamortizing 0 0 144 141 360
72 30/360 Fully Amortizing 0 0 264 244 264
- ---------------------------------------------------------------------------------------------------------------------------------
73 Act/360 Balloon 0 0 120 116 360
74 Act/360 Balloon 0 0 120 117 360
75 Act/360 Hyperamortizing 0 0 84 77 360
76 30/360 Balloon 0 0 120 119 300
77 Act/360 Balloon 0 0 120 118 300
- ---------------------------------------------------------------------------------------------------------------------------------
77a
77b
77c
77d
78 Act/360 Balloon 0 0 84 83 360
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Remaining Underwritten
Control Amortization Origination Maturity Balloon Annual Net
No. Term (Mos.) Date or ARD Balance ($) Prepayment Provisions Debt Service ($) Cash Flow ($)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
17 360 7/16/98 8/1/08 18,421,575 L(2),D(7.5),O(.5) 1,713,868 2,402,776
- -----------------------------------------------------------------------------------------------------------------------------------
18 300 6/19/98 8/1/07 19,285,050 L(2.083),DEF(7) 1,835,025 2,785,163
19 357 4/24/98 5/1/13 16,236,227 L(7),D(7.75),O(.25) 1,713,960 2,613,189
20 352 11/13/97 12/1/07 17,957,988 L(9),O(.5) 1,672,415 1,969,472
21 360 7/13/98 2/10/09 15,888,668 L(2),D(7.75),O(.75) 1,432,577 2,761,289
22 360 7/21/98 8/10/13 14,113,313 L(2),D(12.5),O(.5) 1,544,001 1,963,563
- -----------------------------------------------------------------------------------------------------------------------------------
23 357 4/7/98 5/1/13 14,078,471 L(7),D(6.5),O(1.5) 1,467,505 2,022,371
24 358 5/29/98 6/1/08 15,699,697 L(2.167),D(7.333),O(.5) 1,472,149 1,815,155
25 356 3/31/98 4/1/08 14,793,961 L(5),D(4.75),O(.25) 1,402,669 1,965,446
26 359 6/16/98 7/1/08 13,834,724 L(4),D(5.75),O(.25) 1,279,290 1,724,270
27 360 7/13/98 2/10/09 12,543,684 L(2),D(7.75),O(.75) 1,130,982 2,092,792
- -----------------------------------------------------------------------------------------------------------------------------------
28 358 5/29/98 6/1/08 $ 13,087,792 L(4),D(5.75),O(.25) $ 1,198,754 $ 1,511,860
29 299 6/26/98 7/1/08 11,515,799 L(2.083),D(7.417),O(.5) 1,286,527 2,018,000
30 299 6/29/98 7/1/08 11,559,936 L(2.083),D(7.417),O(.5) 1,306,737 2,306,731
31 359 5/31/98 7/1/08 12,310,289 L(2.083),D(7.417),O(.5) 1,157,149 1,841,553
32 296 3/11/98 7/1/13 8,695,260 L(3.917),D(10.833),O(.5) 1,278,201 1,763,451
- -----------------------------------------------------------------------------------------------------------------------------------
33 299 6/26/98 7/1/08 10,994,507 L(2.083),D(7.417),O(.5) 1,228,289 2,004,000
34 360 7/31/98 8/10/05 12,357,147 L(2),D(4.5),O(.5) 1,107,876 1,408,264
35 357 4/14/98 5/1/18 7,472,785 L(2.25),D(17.5),O(.25) 1,043,972 1,804,618
36 356 3/30/98 4/1/08 10,912,063 YM1%(9.5),O(.5) 1,046,595 1,400,884
37 359 6/29/98 7/1/08 10,730,235 L(2.083),D(7.417),O(.5) 999,189 1,289,262
- -----------------------------------------------------------------------------------------------------------------------------------
38 299 6/26/98 7/1/08 9,983,924 L(2.083),D(7.417),O(.5) 1,115,388 1,845,000
39 300 6/24/98 7/1/08 10,615,035 L(2.083),D(7.417),O(.5) 983,810 1,415,800
40 298 5/7/98 6/1/08 8,958,146 L(2.167),D(7.583),O(.25) 982,348 1,453,013
41 358 6/1/98 6/1/08 9,339,678 L(4),D(5.75),O(.25) 834,562 1,494,670
42 359 6/10/98 7/1/08 9,059,074 L(2.083),D(7.417),O(.5) 857,873 1,064,543
- -----------------------------------------------------------------------------------------------------------------------------------
43 299 6/26/98 7/1/08 8,386,497 L(2.083),D(7.417),O(.5) 936,926 1,050,000
44 177 1/25/96 3/1/13 148,908 YM(17.17) 1,116,581 1,151,581
45 288 6/21/98 8/1/08 7,786,125 YM1%(9.417),O(.583) 873,463 1,004,395
46 358 5/7/98 6/1/08 8,043,126 L(2.167),D(7.333),O(.5) 775,179 972,469
47 297 4/9/98 5/1/05 8,187,961 L(3),D(3.5),O(.5) 823,894 1,036,083
- -----------------------------------------------------------------------------------------------------------------------------------
48 244 7/30/98 8/1/13 4,453,411 L(2),D(12.5),O(.5) 694,880 726,780
49 360 7/31/98 8/1/08 7,527,691 L(2),D(7.5),O(.5) 719,727 936,994
50 244 11/27/96 12/1/18 - L(1),YM(21) 838,640 838,640
51 293 12/12/97 1/1/18 3,172,560 L(2.584),D(12.416),O(5) 769,662 1,187,808
52 358 5/5/98 6/1/08 7,297,346 L(4),D(5.75),O(.25) 694,936 940,490
- -----------------------------------------------------------------------------------------------------------------------------------
53 360 7/7/98 8/1/08 7,197,674 L(4),D(5.75),O(.25) 670,594 952,236
54 357 4/2/98 5/1/08 7,005,134 L(4),D(5.75),O(.25) 647,742 839,272
55 300 7/21/98 8/10/08 6,173,924 L(2.083),D(7.417),O(.5) 675,612 880,737
56 357 4/24/98 5/1/08 6,842,394 L(4),D(5.75),O(.25) 647,724 778,842
57 360 7/7/98 8/1/08 6,742,998 L(2.417),D(7.333),O(.25) 624,076 790,509
- -----------------------------------------------------------------------------------------------------------------------------------
58 357 4/16/98 5/1/08 6,668,779 L(4),D(5.75),O(.25) 620,290 787,255
59 298 5/21/98 9/1/08 6,124,489 L(4),D(5.917),O(.333) 718,725 1,054,152
60 360 7/13/98 2/10/09 6,271,842 L(2),D(7.75),O(.75) 565,491 1,043,713
61 299 6/19/98 9/1/08 5,921,005 L(4),D(5.583),O(.583) 656,773 1,206,029
62 357 4/15/98 5/1/08 6,551,800 L(4),D(5.75),O(.25) 600,907 867,169
- -----------------------------------------------------------------------------------------------------------------------------------
63 238 5/7/98 6/1/08 5,191,605 L(2.08),D(7.92) 722,834 1,018,615
64 299 6/3/98 7/1/13 4,326,178 L(2.083),D(12.417),O(.5) 626,182 1,283,990
65 359 6/5/98 7/1/05 6,316,398 L(4),D(2.75),O(.25) 579,369 772,916
66 296 3/30/98 4/1/08 5,493,079 L(4),D(5.75),O(.25) 592,968 800,776
67 359 6/16/98 7/1/08 5,887,051 L(4),D(5.75),O(.25) 538,351 657,894
- -----------------------------------------------------------------------------------------------------------------------------------
68 244 11/27/96 12/1/18 - L(1),YM(21) 667,100 667,100
69 360 7/24/98 8/1/08 5,679,005 L(2),D(7.5),O(.5) 532,926 638,888
70 359 6/26/98 7/1/08 5,780,574 L(5),D(4.75),O(.25) 534,922 692,232
71 357 4/14/98 5/1/10 5,548,848 L(7),D(4.75),O(.25) 539,747 698,340
72 244 11/27/96 12/1/18 - L(1),YM(21) 648,040 648,040
- -----------------------------------------------------------------------------------------------------------------------------------
73 356 3/18/98 4/1/08 $ 5,583,402 L(2.333),D(7.667) $ 534,686 $ 839,262
74 357 4/22/98 5/1/08 5,576,006 L(4),D(5.75),O(.25) 508,376 658,734
75 353 12/23/97 1/1/05 5,894,621 L(4),D(2.75),O(.25) 523,422 678,201
76 299 6/11/98 7/1/08 5,050,051 L(2.083),D(7.417),O(.5) 591,088 870,501
77 298 5/21/98 6/1/08 5,005,162 L(4),D(5.75),O(.25) 539,687 764,322
- -----------------------------------------------------------------------------------------------------------------------------------
77a
77b
77c
77d
78 359 6/5/98 7/1/05 5,578,489 L(4),D(2.75),O(.25) 508,374 712,384
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten Cut-off Scheduled Sq. Ft, Units
Control NCF Appraised Appraisal Date Maturity or ARD Year Year Beds, Pads
No. DSCR (x) Value ($) Date LTV (%) Date LTV(%) Built Renovated or Rooms
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
17 1.40 30,000,000 5/1/98 71.6 61.4 1958-1996 1998 306,788 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
18 1.52 40,000,000 4/1/98 52.5 48.2 1925 1991-2 333,579 Sq Ft
19 1.52 31,000,000 11/1/97 67.6 52.4 1924 1995-96 251,491 Sq Ft
20 1.18 26,500,000 10/13/97 76.9 67.8 1996 N/A 360 Units
21 1.93 30,100,000 5/1/98 63.1 52.8 1970/1978 N/A 900 Pads
22 1.56 23,700,000 7/1/98 65.0 48.5 1997-98 N/A 324 Units
- ------------------------------------------------------------------------------------------------------------------------------------
23 1.38 23,300,000 2/16/98 78.8 60.4 1997-1998 N/A 121,879 Sq Ft
24 1.23 23,000,000 4/30/98 79.2 68.3 1990-1991 N/A 420 Units
25 1.40 22,500,000 2/23/98 74.3 65.8 1972 N/A 541,730 Sq Ft
26 1.35 20,000,000 1/14/98 79.0 69.2 1971-2 N/A 242,955 Sq Ft
27 1.85 22,900,000 5/1/98 65.5 54.8 1970 1997 639 Pads
- ------------------------------------------------------------------------------------------------------------------------------------
28 1.26 x $ 18,900,000 4/13/98 79.3% 69.3% 1984 N/A 336 Units
29 1.57 19,600,000 2/1/97 73.5 58.8 1988 N/A 170 Beds
30 1.77 22,000,000 4/1/98 65.4 52.6 1974 1996 304 Beds
31 1.59 21,540,000 4/7/98 66.3 57.2 1996 N/A 146,496 Sq Ft
32 1.38 23,600,000 1/1/98 59.1 36.8 1974 1994 251 Rooms
- ------------------------------------------------------------------------------------------------------------------------------------
33 1.63 17,400,000 2/1/97 79.0 63.2 1988 N/A 180 Beds
34 1.45 15,600,000 5/1/98 76.9 70.4 1959 1966, 1983, 1990 224,757 Sq Ft
35 1.73 22,000,000 11/20/97 59.0 34.0 1989 N/A 183 Units
36 1.34 17,400,000 2/18/98 72.2 62.7 1990/1991 N/A 274,049 Sq Ft
37 1.29 16,350,000 6/11/98 76.4 65.6 1990-1991 N/A 196 Units
- ------------------------------------------------------------------------------------------------------------------------------------
38 1.65 15,400,000 10/22/97 81.1 64.8 1991 1997 & 1998 190 Beds
39 1.44 18,350,000 5/1/98 63.5 57.9 1986 N/A 146,542 Sq Ft
40 1.48 15,400,000 2/12/98 71.3 58.2 1992 N/A 147 Rooms
41 1.79 17,200,000 5/1/98 62.8 54.3 1957 1997 98,553 Sq Ft
42 1.24 13,150,000 4/29/98 79.8 68.9 1970 & 1973 1997 294 Units
- ------------------------------------------------------------------------------------------------------------------------------------
43 1.12 13,000,000 10/21/97 80.7 64.5 1987 N/A 180 Beds
44 1.03 13,500,000 7/8/98 77.4 1.1 1992 N/A 107,927 Sq Ft
45 1.15 11,700,000 12/20/97 86.8 66.6 1997-1998 N/A 35,451 Sq Ft
46 1.25 12,400,000 12/29/97 74.7 64.9 1986 N/A 153,338 Sq Ft
47 1.26 12,600,000 9/25/97 73.2 65.0 1969 N/A 405,340 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
48 1.05 9,650,000 6/1/98 95.5 46.2 1993 N/A 108,138 Sq Ft
49 1.30 11,700,000 9/1/98 74.4 64.3 1972 N/A 153,370 Sq Ft
50 1.00 9,100,000 5/23/98 92.7 0.0 1996 N/A 45,502 Sq Ft
51 1.54 11,800,000 10/1/97 70.6 26.9 1989 1996 159 Rooms
52 1.35 11,000,000 3/26/98 74.9 66.3 1991 N/A 60,080 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
53 1.42 11,000,000 7/1/98 74.6 65.4 1962 N/A 160,172 Sq Ft
54 1.30 10,000,000 12/31/97 79.8 70.1 1986,1989 N/A 168 Units
55 1.30 12,500,000 5/27/98 62.4 49.4 1988 N/A 63,527 Sq Ft
56 1.20 9,900,000 3/2/98 78.1 69.1 1987 N/A 268,088 Sq Ft
57 1.27 10,300,000 5/30/98 74.8 65.5 1988 N/A 75,404 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
58 1.27 10,200,000 1/27/98 74.4 65.4 1971 1993 314,236 Sq Ft
59 1.47 10,400,000 4/17/98 72.9 58.9 1991 N/A 193 Rooms
60 1.85 11,400,000 5/1/98 65.8 55.0 1972 N/A 360 Pads
61 1.84 18,750,000 6/1/98 40.0 31.6 1929 & 1961 1998 145 Rooms
62 1.44 9,380,000 3/16/98 79.8 69.9 1985-1989 N/A 259 Units
- ------------------------------------------------------------------------------------------------------------------------------------
63 1.41 11,000,000 2/10/98 68.0 47.2 1988 N/A 140 Rooms
64 2.05 8,550,000 3/30/98 79.9 50.6 1975 1995 183 Beds
65 1.33 9,050,000 12/1/97 74.9 69.8 1950 1980s,1993 169,375 Sq Ft
66 1.35 8,600,000 2/18/98 78.7 63.9 1982 N/A 109,203 Sq Ft
67 1.22 8,600,000 4/7/98 78.4 68.5 1986 N/A 130 Units
- ------------------------------------------------------------------------------------------------------------------------------------
68 1.00 7,300,000 6/12/98 91.9 0.0 1996 N/A 42,719 Sq Ft
69 1.29 7,640,000 4/16/98 80.2 69.0 1984 N/A 212 Units
70 1.29 9,100,000 3/26/98 72.5 63.5 1988 N/A 53,674 Sq Ft
71 1.29 9,500,000 3/2/98 69.3 58.4 1969 N/A 288,105 Sq Ft
72 1.00 7,000,000 6/2/98 93.1 0.0 1996 N/A 45,502 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
73 1.57 x $ 9,250,000 2/2/98 69.5% 60.4% 1974 1994 103,935 Sq Ft
74 1.30 8,650,000 12/5/97 73.8 64.5 1974 1988 109,800 Sq Ft
75 1.30 8,000,000 12/5/97 79.3 73.7 1980 N/A 182 Units
76 1.47 11,700,000 4/1/98 52.9 43.2 1971, 1983, 1992 1991, 1992, 1995 89 Beds
77 1.42 8,290,000 4/6/98 74.6 60.4 Various N/A 85,580 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
77a 2,150,000 4/6/98 1989 N/A 19,247 Sq Ft
77b 2,100,000 4/6/98 1958,1984 N/A 24,800 Sq Ft
77c 2,100,000 4/6/98 1988 N/A 23,911 Sq Ft
77d 1,940,000 4/6/98 1961 1991 17,622 Sq Ft
78 1.40 8,050,000 5/1/98 74.5 69.3 1987 N/A 99,875 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cut-off
Sq. Ft, Unit Replacement Annual
Control Bed, Pad Occupancy Occupancy Ownership Reserve TI/LC
No. or Room ($) Percentage (%) Date Interest Deposit Deposit
=======================================================================================================
<S> <C> <C> <C> <C> <C> <C>
17 70 100 5/12/98 Fee Simple 42,897 -
- -------------------------------------------------------------------------------------------------------
18 62.95 96.4 7/13/98 Fee Simple 50,040 319,812
19 83.34 95.5 5/27/98 Fee Simple 37,402 -
20 56,582.26 95.6 4/20/98 Fee Simple 57,960 -
21 21,111.11 98.0 3/25/98 Fee Simple - -
22 58,333.33 74.0 7/2/98 Fee Simple 64,800 -
- -------------------------------------------------------------------------------------------------------
23 150.65 100.0 1/28/98 Fee Simple 12,176 25,000
24 43,383.36 92.0 5/21/98 Fee Simple 84,000 -
25 30.84 92.8 2/28/98 Fee Simple 80,064 75,000
26 64.99 100.0 1/23/98 Fee Simple 36,443 -
27 23,474.18 98.0 4/25/98 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
28 44,578.29 97.0% 5/3/98 Fee Simple $ 67,200 $ -
29 84,725.50 94.0 2/1/97 Fee Simple - -
30 47,322.25 90.0 4/1/98 Fee Simple - -
31 97.55 96.0 3/31/98 Fee Simple - -
32 55,536.22 72.0 1/1/98 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
33 76,396.29 87.0 2/1/97 Fee Simple - -
34 60.06 99.0 6/30/98 Leasehold 40,456 97,009
35 70,873.71 97.0 3/1/98 Fee Simple 38,000 -
36 45.84 98.0 2/23/98 Fee Simple 41,112 75,000
37 63,730.17 93.0 6/17/98 Fee Simple 49,980 -
- -------------------------------------------------------------------------------------------------------
38 65,722.89 94.0 10/22/97 Fee Simple - -
39 79.50 100.0 6/30/98 Fee Simple 29,304 -
40 74,676.72 80.5 1/2/98 Fee Simple - -
41 109.51 93.8 5/1/98 Fee Simple 14,778 -
42 35,690.25 97.0 5/5/98 Fee Simple 47,040 -
- -------------------------------------------------------------------------------------------------------
43 58,274.30 88.0 10/21/97 Fee Simple - -
44 96.78 100.0 3/23/93 Fee Simple - -
45 286.31 100.0 4/20/98 Fee Simple 4,024 -
46 60.40 100.0 1/2/98 Fee Simple 24,534 -
47 22.75 100.0 7/8/88 Fee Simple 12,500 15,000
- -------------------------------------------------------------------------------------------------------
48 85.26 100.0 Fee Simple - -
49 56.73 83.0 6/26/98 Fee Simple 23,004 254,364
50 185.41 100.0 11/27/96 Fee Simple - -
51 52,425.47 78.0 10/1/97 Fee Simple 153,540 -
52 137.14 100.0 5/5/98 Fee Simple 6,008 -
- -------------------------------------------------------------------------------------------------------
53 51.19 92.6 7/3/98 Fee Simple 28,831 39,996
54 47,523.46 96.4 1/27/98 Fee Simple 39,144 -
55 122.78 100.0 6/12/98 Fee Simple 15,246 -
56 28.86 100.0 8/29/96 Fee Simple - -
57 102.12 94.4 5/1/98 Fee Simple 11,311 60,323
- -------------------------------------------------------------------------------------------------------
58 24.14 98.2 5/5/98 Fee Simple 63,047 61,318
59 39,299.41 69.0 2/1/98 Fee Simple - -
60 20,833.33 99.0 4/25/98 Fee Simple - -
61 51,669.60 64.0 6/1/98 Fee Simple - -
62 28,913.11 98.1 2/28/98 Fee Simple 59,829 -
- -------------------------------------------------------------------------------------------------------
63 53,387.46 82.8 12/31/97 Fee Simple 41,220 -
64 37,341.34 84.0 3/30/98 Fee Simple - -
65 40.04 93.4 3/13/98 Fee Simple 43,096 103,261
66 62.00 91.1 2/1/98 Fee Simple 16,898 50,000
67 51,890.51 99.0 3/1/98 Fee Simple 26,000 -
- -------------------------------------------------------------------------------------------------------
68 157.09 100.0 11/27/96 Fee Simple - -
69 31,132.08 94.0 4/16/98 Fee Simple 42,400 -
70 122.89 91.1 6/25/98 Fee Simple 8,051 24,000
71 22.86 100.0 3/5/98 Fee Simple 43,212 18,720
72 143.27 100.0 11/27/96 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
73 61.87 100.0% 2/26/98 Fee Simple $ 10,394 $ 81,084
74 58.16 100.0 5/1/98 Fee Simple 15,558 75,000
75 34,848.04 97.2 6/30/98 Fee Simple 45,500 -
76 69,593.63 83.0 4/1/98 Fee Simple - -
77 72.29 92.7 3/1/98 Fee Simple 12,981 28,380
- -------------------------------------------------------------------------------------------------------
77a 93.6 3/1/98 3,849 -
77b 82.4 3/1/98 4,960 -
77c 94.6 3/1/98 4,782 -
77d 95.8 3/1/98 3,524 -
78 60.04 100.0 5/5/98 Fee Simple 15,980 47,087
- -------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Largest Tenant
Control Tenant Area Lease Exp. Control
No. Largest Tenant Name Leased (Sq. Ft.) Date No.
=====================================================================================
<S> <C> <C> <C> <C>
17 HomeBase 135,890 1/31/06 17
- -------------------------------------------------------------------------------------
18 Secretary, Board of Ed. 64,000 6/30/10 18
19 National Westminster Bank 22,412 1/31/10 19
20 20
21 21
22 N/A 42,979 0 22
- -------------------------------------------------------------------------------------
23 Linens 'n Things 42,500 1/31/18 23
24 24
25 Ohio Department of Taxation 168,609 6/30/99 25
26 Burlington Coat Factory 80,000 8/31/06 26
27 27
- -------------------------------------------------------------------------------------
28 28
29 29
30 30
31 General Electric Capital Corp. 47,092 2/14/99 31
32 32
- -------------------------------------------------------------------------------------
33 33
34 Toys R Us 32,814 1/31/19 34
35 Manic Depress. Illness Found. - 1/31/99 35
36 K-Mart 104,231 7/4/16 36
37 Donna's Cafe - 0 37
- -------------------------------------------------------------------------------------
38 38
39 Super Fresh Market 49,336 1/31/07 39
40 40
41 A & P 56,718 7/31/22 41
42 42
- -------------------------------------------------------------------------------------
43 43
44 Sam's P.W., Inc. 107,927 3/31/13 44
45 Ethan Allen, Inc. 17,051 1/1/13 45
46 Dream Quest Images 44,468 9/30/98 46
47 Alloy Rods Corporation 405,340 7/8/03 47
- -------------------------------------------------------------------------------------
48 K-Mart 108,138 2/17/14 48
49 General Motors 75,580 8/30/01 49
50 Circuit City, Inc. 45,502 11/30/18 50
51 51
52 Yaohan - 5/30/18 52
- -------------------------------------------------------------------------------------
53 Olum's 82,542 11/30/16 53
54 54
55 Loews Meadow Cinemas 8 49,134 12/31/06 55
56 Tab Warehouse Fontana 268,088 12/31/07 56
57 Pioneer Eye Care 14,416 2/28/00 57
- -------------------------------------------------------------------------------------
58 Stop & Shop (Bradlees) 111,075 3/31/01 58
59 59
60 60
61 61
62 62
- -------------------------------------------------------------------------------------
63 63
64 64
65 Quality Markets 54,826 10/31/06 65
66 MBC/Pa Biodyne 27,607 11/30/03 66
67 67
- -------------------------------------------------------------------------------------
68 Circuit City, Inc. 42,719 11/30/18 68
69 69
70 Lander Co., Inc. 11,000 7/31/01 70
71 RMS Warehouse & Dist. Corp. 146,427 8/31/07 71
72 Circuit City, Inc. 45,502 11/30/18 72
- -------------------------------------------------------------------------------------
73 SunTrust 103,935 3/27/05 73
74 JoAnn Fabrics 15,000 5/12/02 74
75 75
76 76
77 77
- -------------------------------------------------------------------------------------
77a El Bethel Community Outreach 285 2/28/99 77a
77b Paul D. Novack, PA 2,054 1/31/98 77b
77c Bio Flex 5,500 7/30/01 77c
77d Coldwell Banker Realty 2,460 3/30/98 77d
78 Quality Mark 54,800 11/30/06 78
- -------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ITALICS indicate mortgage loans secured by multiple properties.
<TABLE>
<CAPTION>
Control Loan
No. Seller Number Property Name
========================================================================================================
<S> <C> <C> <C>
79 GMACCM GMAC1210 Tamal Vista Shopping Center
80 Lehman Brothers 971002024 One Forest Drive
81 GMACCM GMAC1220 Chesapeake Apartments
82 GMACCM GMAC2713 Uniprop - West Point
83 GMACCM GMAC2200 Harwin Drive Office Building
- --------------------------------------------------------------------------------------------------------
84 GMACCM GMAC1230 Sunrise at Pinnacle Phase II
85 GMACCM GMAC2190 Sharon Hill Shopping Center
86 GMACCM GMAC2230 Midway Plaza Shopping Center
87 Lehman Brothers 980204001 Shop 'N Save (Hannaford Brothers)
88 Lehman Brothers 971113017 Northwood Village Shopping Center
- --------------------------------------------------------------------------------------------------------
89 Lehman Brothers 980127045 University Courtyard Apartments
90 GMACCM GMAC3200 Stratford House
91 GMACCM GMAC2020 Princeton Court Apartments
92 Lehman Brothers 971217069 Transworld Financial Center
93 GMACCM GMAC1250 Circuit City
- --------------------------------------------------------------------------------------------------------
94 Lehman Brothers 9 Garden Lake MHP
95 Lehman Brothers 980225052 7277 World Communications Drive (Sitel Corp.)
96 GMACCM GMAC2710 Uniprop - Saginaw Villas
97 Lehman Brothers 980127083 Indian Run Apartments
98 Lehman Brothers 980601999I Circuit City (Property Level)
- --------------------------------------------------------------------------------------------------------
99 Lehman Brothers 980601999F Circuit City (Property Level)
100 Lehman Brothers 971120015 Hampton Inn Greenville/I85
101 GMACCM GMAC1280 Ramsgate Apartments
101a GMACCM GMAC1280-A Ramsgate Apartments
101b GMACCM GMAC1280-B Devonshire Townhomes
- --------------------------------------------------------------------------------------------------------
101c GMACCM GMAC1280-C Devonshire Single Family Homes
102 Lehman Brothers 971229009 Townsquare Shop Ctr
103 GMACCM GMAC1960 Desert Sky Apartments
104 GMACCM GMAC1290 Brookfield Commons Office Bldg.
105 GMACCM GMAC2070 Quality Center Shopping Center
- --------------------------------------------------------------------------------------------------------
106 GMACCM GMAC1300 Hickory Manor Apartments
107 Lehman Brothers 971103001 45085 University Drive
108 Lehman Brothers 980106035 Executive Center
109 Lehman Brothers 65 Napa Valley Gateway
110 Lehman Brothers 980601999A Circuit City (Property Level)
- --------------------------------------------------------------------------------------------------------
111 GMACCM GMAC1310 Riverdale Village Apartment
112 Lehman Brothers 980408003 Courtyard at Camino Real
113 GMACCM GMAC2840 Tomball Nursing Center
114 Lehman Brothers 970917032 867 Boylston Street
115 Lehman Brothers 971029021 Central Point Shopping Center
- --------------------------------------------------------------------------------------------------------
116 Lehman Brothers 123452861 Santa Fe Apartments
117 Lehman Brothers 980401003 Grandview Gardens
118 Lehman Brothers 26 Tanglewood Estates
119 GMACCM GMAC1320 Florex Industrial Properties
119a GMACCM GMAC1320-A Florex Industrial Center - #05
- --------------------------------------------------------------------------------------------------------
119b GMACCM GMAC1320-B Florex Industrial Park - #10
119c GMACCM GMAC1320-C Florex Industrial Center - #11
119d GMACCM GMAC1320-D Florex Industrial Center
120 GMACCM GMAC3030 Builders Square
121 Lehman Brothers 970430014 Manitoba Apartments
- --------------------------------------------------------------------------------------------------------
122 Lehman Brothers 980601999G Circuit City (Property Level)
123 Lehman Brothers 971217067 MIE Corporate Center
124 Lehman Brothers 980408005 6301 Hazeltine National Drive (Lake Point IV)
125 GMACCM GMAC1330 Brentwood Forest Apartments
126 Lehman Brothers 970430010 Overlake Apartments
- --------------------------------------------------------------------------------------------------------
127 Lehman Brothers 971001003 Oxbridge Square Shopping Center
128 GMACCM GMAC2705 Uniprop - Country Meadows
129 GMACCM GMAC2711 Uniprop - Sierra Vista
130 Lehman Brothers 980106049 South Mountain Shopping Center
131 GMACCM GMAC1340 Stanford Court Apartments
- --------------------------------------------------------------------------------------------------------
132 Lehman Brothers 980127071 Extra Space Center (Loan Level)
132a Lehman Brothers 980127071A Extra Space Center (Property Level)
132b Lehman Brothers 980127071B Extra Space Center (Property Level)
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Control
No. Property Type Address City
==================================================================================================================================
<S> <C> <C> <C>
79 Retail - Unanchored 47-71 Tamal Vista Boulevard Corte Madera
80 Office One Forest Parkway Shelton
81 Multifamily 4607 Connecticut Avenue, N.W. Washington
82 Multifamily - Mobile Home Park 24878 25th Street Mattawan
83 Office 10333 Harwin Drive Houston
- ----------------------------------------------------------------------------------------------------------------------------------
84 Multifamily Wrangleboro Road Galloway Township
85 Retail - Anchored Chester Pike & Clifton Avenue Sharon Hill
86 Retail - Unanchored 10412-10642 Lower Azusa Road El Monte
87 CTL - Retail US Route 3 Franklin
88 Retail - Unanchored 353 Greens Road Houston
- ----------------------------------------------------------------------------------------------------------------------------------
89 Multifamily 480 Murray Road Valdosta
90 Healthcare - Nursing Home, Skilled Care 8249 Standifer Gap Road Chattanooga
91 Multifamily 5797 Brookhill Lane Frederick
92 Office 13111 Northwest Freeway Houston
93 CTL - Retail 2150 East Main Street Cortlandt
- ----------------------------------------------------------------------------------------------------------------------------------
94 Multifamily - Mobile Home Park 1402 Route 9 Cape May Courthouse
95 Office 7277 World Communications Drive Omaha
96 Multifamily - Mobile Home Park 4141 Dixie Highway Saginaw
97 Multifamily 3500 Cedar Run Abilene
98 CTL - Retail 3124 Vestal Parkway East Vestal
- ----------------------------------------------------------------------------------------------------------------------------------
99 CTL - Retail 5100 Youngstown Warren Road Niles
100 Hotel - Limited Service 47 Fisherman Lane Greenville
101 Multifamily Various Various
101a Multifamily 12930 S. Brookfield Olathe
101b Multifamily 13103 - 13224 Brougham Street Olathe
- ----------------------------------------------------------------------------------------------------------------------------------
101c Multifamily 13104-13224 Brougham Street, West 132nd
Terrace Olathe
102 Retail - Anchored 120-124 Clairborne Road Olathe
103 Multifamily 4620 West McDowell Road Phoenix
104 Office 6600 West Broad Street Richmond
105 Retail - Unanchored US Route 30 and 896 East Lampeter Township
- ----------------------------------------------------------------------------------------------------------------------------------
106 Multifamily 2900 Hamilton Church Road Antioch (Na+G247shville)
107 Office 45085 University Drive Ashburn
108 Office 415 Washington Street Waukegan
109 Office 499 Devlin Road Napa
110 CTL - Retail 4635 College Avenue Grand Chute
- ----------------------------------------------------------------------------------------------------------------------------------
111 Multifamily Riverdale Road, 54th St.& 56th St. Riverdale
112 Office 14855 Blanco Road San Antonio
113 Healthcare - Nursing Home, Skilled Care 815 North Peach Street Tomball
114 Office 867 Boylston Street Boston
115 Retail - Unanchored 627-699 Harrisburg Pike Columbus
- ----------------------------------------------------------------------------------------------------------------------------------
116 Multifamily 3955 East Charleston Boulevard Las Vegas
117 Multifamily 957 Bristol Pike Bensalem
118 Multifamily - Mobile Home Park 10 Sparrow Street Keene
119 Industrial Various Various
119a Industrial 920-938 East 124th Avenue Tampa
- ----------------------------------------------------------------------------------------------------------------------------------
119b Industrial 4302 East 10th Avenue Tampa
119c Industrial 4020-4101 East 12th Avenue Tampa
119d Industrial 13211 - 13217 N. Nebraska Tampa
120 Retail - Anchored 4340 Lincoln Highway Matteson
121 Multifamily 8225 Calmont Drive Fort Worth
- ----------------------------------------------------------------------------------------------------------------------------------
122 CTL - Retail 3600 South Glenstone Avenue Springfield
123 Office 420 & 500 Corporate Circle Golden
124 Office 6301 Hazeltine Na+F275tional Drive Orlando
125 Multifamily 777 Southeast 15th Street Edmond
126 Multifamily 7920 Northwest 21st Street Bethany
- ----------------------------------------------------------------------------------------------------------------------------------
127 Retail - Anchored 9901-10011 Hull Street Richmond
128 Multifamily - Mobile Home Park 860 Richards Road Antioch
129 Multifamily - Mobile Home Park 1299 Zepol Santa Fe
130 Retail - Anchored Emaus Avenue and East 3rd Street Allentown
131 Multifamily 1011-1153 Raritan Drive Rock Hill
- ----------------------------------------------------------------------------------------------------------------------------------
132 Self Storage Various Various
132a Self Storage 6717 Benjamin Rd Tampa
132b Self Storage 8119 Anderson Road Tampa
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial Mortgage
No. State Code Groups Balance ($) Balance ($) Balance Pool Balance Rate (%)
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
79 CA 94925 No 6,000,000 5,996,039 0.23 64.07 7.2000
80 CT 06484 No 6,000,000 5,989,252 0.23 64.31 7.5600
81 DC 20008 No 6,000,000 5,985,657 0.23 64.54 6.8100
82 MI 49071 No 5,750,000 5,750,000 0.22 64.77 6.3500
83 TX 77057 No 5,750,000 5,750,000 0.22 64.99 7.3300
- -----------------------------------------------------------------------------------------------------------------------
84 NJ 08201 No 5,750,000 5,745,259 0.22 65.21 6.9700
85 PA 19079 No 5,700,000 5,700,000 0.22 65.44 7.0800
86 CA 91731 No 5,700,000 5,700,000 0.22 65.66 7.3800
87 NH 03235 No 5,700,000 5,700,000 0.22 65.88 7.0500
88 TX 77060 No 5,700,000 5,684,704 0.22 66.10 7.3400
- -----------------------------------------------------------------------------------------------------------------------
89 GA 31602 No 5,680,000 5,664,415 0.22 66.32 7.2400
90 TN 37421 No 5,650,000 5,630,731 0.22 66.54 7.8100
91 MD 21703 No 5,600,000 5,600,000 0.22 66.76 6.8800
92 TX 77040 No 5,600,000 5,592,681 0.22 66.98 7.4200
93 NY 13045 No 5,559,000 5,544,235 0.22 67.20 6.9180
- -----------------------------------------------------------------------------------------------------------------------
94 NJ 08210 No 5,500,000 5,496,897 0.21 67.41 7.3300
95 NE 68122 No 5,400,000 5,386,499 0.21 67.62 7.6200
96 MI 48601 No 5,300,000 5,300,000 0.21 67.83 6.3500
97 TX 76118 No 5,260,000 5,245,206 0.20 68.03 7.1500
98 NY 13850 No 5,336,454 5,186,810 0.20 68.23 7.9600
- -----------------------------------------------------------------------------------------------------------------------
99 OH 44446 No 5,336,454 5,176,901 0.20 68.44 7.9600
100 SC 29615 No 5,150,000 5,134,090 0.20 68.64 7.3900
101 VAR Various No 5,100,000 5,092,104 0.20 68.83 7.1250
101a KS 66061
101b KS 66062
- -----------------------------------------------------------------------------------------------------------------------
101c KS 66062
102 KS 66062 No 5,000,000 4,997,304 0.19 69.03 7.4700
103 AZ 85035 No 5,000,000 4,992,393 0.19 69.22 7.2100
104 VA 23230 No 5,000,000 4,989,554 0.19 69.42 7.4200
105 PA 17602 No 4,950,000 4,950,000 0.19 69.61 7.4000
- -----------------------------------------------------------------------------------------------------------------------
106 TN 37013 No 4,950,000 4,946,139 0.19 69.81 7.2500
107 VA 20147 No 4,900,000 4,900,000 0.19 70.00 7.3100
108 IL 60085 No 4,900,000 4,883,690 0.19 70.19 7.2600
109 CA 94558 No 4,800,000 4,800,000 0.19 70.37 7.2600
110 WI 54915 No 4,941,160 4,793,427 0.19 70.56 7.9600
- -----------------------------------------------------------------------------------------------------------------------
111 MD 20737 No $ 4,800,000 $ 4,792,216 0.19% 70.75% 7.0700%
112 TX 78216 No 4,750,000 4,743,714 0.19 70.93 7.3700
113 TX 77375 No 4,720,000 4,715,491 0.18 71.12 7.7500
114 MA 02116 No 4,700,000 4,691,392 0.18 71.30 7.4800
115 OH 43223 No 4,700,000 4,688,791 0.18 71.48 7.1850
- -----------------------------------------------------------------------------------------------------------------------
116 NV 89104 No 4,800,000 4,678,878 0.18 71.67 8.5600
117 PA 19020 No 4,680,000 4,677,194 0.18 71.85 7.0800
118 NH 03431 No 4,680,000 4,669,992 0.18 72.03 7.3500
119 FL Various No 4,675,000 4,659,845 0.18 72.21 7.5000
119a FL 33612
- -----------------------------------------------------------------------------------------------------------------------
119b FL 33605
119c FL 33605
119d FL 33612
120 IL 60443 No 5,000,000 4,624,417 0.18 72.39 8.1250
121 TX 76116 No 4,622,677 4,609,873 0.18 72.57 7.4379
- -----------------------------------------------------------------------------------------------------------------------
122 MO 65804 No 4,743,514 4,601,690 0.18 72.75 7.9600
123 CO 80401 No 4,600,000 4,600,000 0.18 72.93 6.9600
124 FL 32822 No 4,600,000 4,593,379 0.18 73.11 7.0300
125 OK 73013 No 4,575,000 4,571,837 0.18 73.29 7.0200
126 OK 73008 No 4,577,902 4,571,550 0.18 73.47 7.4700
- -----------------------------------------------------------------------------------------------------------------------
127 VA 23236 No 4,517,500 4,512,267 0.18 73.64 7.4000
128 TN 37013 No 4,500,000 4,500,000 0.18 73.82 6.3500
129 NM 87505 No 4,500,000 4,500,000 0.18 73.99 6.3500
130 PA 18049 No 4,500,000 4,494,788 0.18 74.17 7.4000
131 MO 63119 No 4,500,000 4,490,234 0.18 74.34 7.2500
- -----------------------------------------------------------------------------------------------------------------------
132 FL Various No 4,350,000 4,345,790 0.17 74.51 7.3300
132a FL 33634 7.3300
132b FL 33634 7.3300
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Master Interest Original Remaining Term to Term to Original
Control Servicing Servicing Accrual Amortization Interest-Only Interest-Only Maturity Maturity Amortization
No. Fee Fee Method Type Period (Mos.) Period (Mos.) (Mos.) (Mos.) Term (Mos.)
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
79 Act/360 Balloon 0 0 120 119 360
80 Act/360 Balloon 0 0 120 117 360
81 Act/360 Balloon 0 0 120 117 360
82 Act/360 Hyperamortizing 0 0 126 126 360
83 Act/360 Balloon 0 0 84 84 360
- ---------------------------------------------------------------------------------------------------------------------------------
84 30/360 Balloon 0 0 120 119 360
85 Act/360 Balloon 0 0 120 120 360
86 Act/360 Balloon 0 0 120 120 300
87 30/360 Step 0 0 231 231 231
88 Act/360 Hyperamortizing 0 0 120 116 360
- ---------------------------------------------------------------------------------------------------------------------------------
89 Act/360 Balloon 0 0 120 116 360
90 Act/360 Fully Amortizing 0 0 240 238 241
91 Act/360 Balloon 0 0 120 120 360
92 Act/360 Balloon 0 0 120 118 360
93 30/360 Step 0 0 240 238 240
- ---------------------------------------------------------------------------------------------------------------------------------
94 Act/360 Balloon 0 0 120 119 360
95 Act/360 Balloon 0 0 144 140 360
96 Act/360 Hyperamortizing 0 0 126 126 360
97 Act/360 Balloon 0 0 120 116 360
98 30/360 Fully Amortizing 0 0 264 244 264
- ---------------------------------------------------------------------------------------------------------------------------------
99 30/360 Fully Amortizing 0 0 264 244 264
100 Act/360 Balloon 0 0 120 117 300
101 Act/360 Balloon 0 0 120 118 360
101a
101b
- ---------------------------------------------------------------------------------------------------------------------------------
101c
102 Act/360 Balloon 0 0 120 119 360
103 Act/360 Balloon 0 0 120 118 360
104 Act/360 Balloon 0 0 84 81 360
105 Act/360 IA 24 23 144 143 324
- ---------------------------------------------------------------------------------------------------------------------------------
106 30/360 Balloon 0 0 180 179 360
107 Act/360 Interest Only...Hyper 24 17 120 113 360
108 Act/360 Balloon 0 0 120 115 360
109 Act/360 Balloon 0 0 120 119 360
110 30/360 Fully Amortizing 0 0 264 244 264
- ---------------------------------------------------------------------------------------------------------------------------------
111 30/360 Balloon 0 0 120 118 360
112 Act/360 Balloon 0 0 120 118 360
113 Act/360 Balloon 0 0 180 179 300
114 Act/360 Balloon 0 0 120 117 360
115 30/360 Balloon 0 0 120 117 360
- ---------------------------------------------------------------------------------------------------------------------------------
116 30/360 Balloon 0 0 84 47 360
117 Act/360 Balloon 0 0 180 179 362
118 Act/360 Balloon 0 0 120 118 300
119 Act/360 Balloon 0 0 120 117 300
119a
- ---------------------------------------------------------------------------------------------------------------------------------
119b
119c
119d
120 30/360 Fully Amortizing 0 0 288 233 288
121 Act/360 Balloon 0 0 113 109 353
- ---------------------------------------------------------------------------------------------------------------------------------
122 30/360 Fully Amortizing 0 0 264 244 264
123 Act/360 Balloon 0 0 120 120 360
124 Act/360 Balloon 0 0 84 82 360
125 Act/360 Balloon 0 0 120 119 360
126 Act/360 Balloon 0 0 111 109 351
- ---------------------------------------------------------------------------------------------------------------------------------
127 30/360 Fully Amortizing 0 0 300 299 300
128 Act/360 Hyperamortizing 0 0 126 126 360
129 Act/360 Hyperamortizing 0 0 126 126 360
130 30/360 Fully Amortizing 0 0 300 299 300
131 Act/360 Balloon 0 0 120 117 360
- ---------------------------------------------------------------------------------------------------------------------------------
132 Act/360 Balloon 0 0 120 119 300
132a
132b
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Remaining Underwritten
Control Amortization Origination Maturity Balloon Annual Net
No. Term (Mos.) Date or ARD Balance ($) Prepayment Provisions Debt Service ($) Cash Flow ($)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
79 359 6/12/98 7/1/08 5,185,575 L(2.083),D(7.417),O(.5) 493,933 706,659
80 357 4/7/98 5/1/08 5,310,701 L(4),D(5.75),O(.25) 506,396 643,599
81 357 4/14/98 5/1/08 5,138,158 L(2.25),D(7.5),O(.25) 474,722 1,013,814
82 360 7/13/98 2/10/09 4,808,413 L(2),D(7.75),O(.75) 433,543 743,402
83 360 7/2/98 8/1/05 5,275,880 L(2),D(4.5),O(.5) 479,502 566,151
- -----------------------------------------------------------------------------------------------------------------------------------
84 359 6/29/98 7/1/08 4,930,725 YM1%(9.25),O(.75) 457,669 611,744
85 360 7/15/98 8/1/08 4,912,644 L(2),D(7.5),O(.5) 463,536 578,725
86 300 7/23/98 8/1/08 4,542,834 L(2),D(7.5),O(.5) 504,943 632,314
87 231 7/24/98 11/1/17 - L(10),YM1%(9.25) or Def 524,459 568,992
88 356 3/31/98 4/1/08 5,016,472 L(3),D(2),5(1),4(1),3(1),2(1),1(.75),
O(.25) 470,791 683,284
- -----------------------------------------------------------------------------------------------------------------------------------
89 356 4/1/98 4/1/08 4,986,014 L(4),D(5.75),O(.25) 464,509 625,665
90 239 5/31/98 6/1/18 5,912 L(2.167),D(17.333),O(.5) 563,820 836,452
91 360 7/14/98 8/1/08 4,803,703 L(2),D(7.5),O(.5) 446,215 578,131
92 358 5/6/98 6/1/08 4,938,372 L(4),D(5.75),O(.25) 466,197 631,891
93 238 5/29/98 6/1/18 - YM1%(19.5),O(.5) 472,907 490,579
- -----------------------------------------------------------------------------------------------------------------------------------
94 359 6/1/98 7/11/08 4,839,666 L(2.08),D(7.67),O(.25) 453,823 605,891
95 356 3/31/98 4/1/10 4,595,166 L(4),D(7.75),O(.25) 458,427 590,793
96 360 7/13/98 2/10/09 4,432,102 L(2),D(7.75),O(.75) 399,614 599,851
97 356 3/31/98 4/1/08 4,606,532 L(3),D(6.75),O(.25) 426,317 543,113
98 244 11/27/96 12/1/18 - L(1),YM(21) 514,620 514,620
- -----------------------------------------------------------------------------------------------------------------------------------
99 244 11/27/96 12/1/18 - L(1),YM(21) 514,620 514,620
100 297 4/16/98 5/1/08 4,170,930 L(4),D(5.75),O(.25) 452,284 704,128
101 358 5/6/98 6/1/08 4,400,119 YM1%(9.5),O(.5) 416,645 572,371
101a
101b
- -----------------------------------------------------------------------------------------------------------------------------------
101c
102 359 6/9/98 7/1/08 4,415,421 L(4),D(5.75),O(.25) 418,297 561,887
103 358 5/8/98 6/1/08 4,322,301 YM1%(9.5),O(.5) 411,989 512,289
104 357 4/20/98 5/1/05 4,593,804 YM1%(6.5),O(.5) 420,766 540,934
105 324 6/5/98 7/1/10 4,107,228 L(2.083),D(9.417),O(.5) 428,456 551,945
- -----------------------------------------------------------------------------------------------------------------------------------
106 359 6/15/98 7/1/13 3,699,230 L(2.083),D(12.417),O(.5) 405,208 494,735
107 360 12/17/97 1/1/08 4,463,535 L(4),YM1%(5.75),O(.25) 403,515 716,239
108 355 2/6/98 3/1/08 4,304,200 L(4),D(5.5),O(.5) 401,519 524,563
109 359 6/25/98 7/11/08 4,216,100 L(2.17),D(7.58),O(.25) 393,324 486,884
110 244 11/27/96 12/1/18 - L(1),YM(21) 476,500 476,500
- -----------------------------------------------------------------------------------------------------------------------------------
111 358 5/28/98 6/1/08 $ 4,125,753 L(2.083),D(7.417),O(.5) $ 385,926 $ 673,566
112 358 5/13/98 6/1/08 4,183,469 L(4),YM1%(5.75),O(.25) 393,491 517,467
113 299 6/3/98 7/1/13 2,985,318 L(2.083),D(12.417),O(.5) 432,102 725,299
114 357 4/29/98 5/1/08 4,151,681 L(4),D(5.5),O(.5) 393,585 494,662
115 357 4/8/98 5/1/08 4,050,563 L(5),D(4.5),O(.5) 382,264 529,515
- -----------------------------------------------------------------------------------------------------------------------------------
116 323 6/12/95 7/1/02 4,471,128 YM1%(6.5),O(.5) 445,346 545,371
117 361 6/10/98 7/1/13 3,611,415 L(3),D(11.5),O(.5) 376,056 503,362
118 298 5/22/98 6/1/08 3,784,997 L(3.167),D(6.583),O(.25) 409,554 548,552
119 297 4/2/98 5/1/08 3,737,998 L(2.25),D(7.25),O(.5) 418,652 671,374
119a
- -----------------------------------------------------------------------------------------------------------------------------------
119b
119c
119d
120 233 12/1/93 1/1/18 - L(3),YM1%(21) 474,156 619,675
121 349 4/1/98 9/1/07 4,094,455 L(2.417),YM1%(6.5),O(.5) 387,590 519,624
- -----------------------------------------------------------------------------------------------------------------------------------
122 244 11/27/96 12/1/18 - L(1),YM(21) 457,440 457,440
123 360 7/7/98 8/1/08 4,008,142 L(4),D(5.75),O(.25) 365,765 517,826
124 358 5/4/98 6/1/05 4,236,263 L(3),D(3.75),O(.25) 368,360 479,077
125 359 6/18/98 7/1/08 3,937,507 L(2.083),D(7.417),O(.5) 369,831 540,203
126 349 5/11/98 9/1/07 4,068,316 L(2.25),YM1%(6.5),O(.5) 385,641 484,152
- -----------------------------------------------------------------------------------------------------------------------------------
127 299 6/2/98 7/1/23 - L(10),D(14.5),O(.5) 397,088 724,752
128 360 7/13/98 2/10/09 3,763,106 L(2),D(7.75),O(.75) 339,294 644,243
129 360 7/13/98 2/10/09 3,763,106 L(2),D(7.75),O(.75) 339,294 595,788
130 299 6/5/98 7/1/23 - L(12),D(12.75),O(.25) 395,549 510,612
131 357 4/27/98 5/1/08 3,893,626 L(2.25),D(7.25),O(.5) 372,323 475,869
- -----------------------------------------------------------------------------------------------------------------------------------
132 299 6/30/98 7/1/08 3,516,474 L(4),D(5.75),O(.25) 380,000 524,893
132a
132b
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten Cut-off Scheduled Sq. Ft, Units
Control NCF Appraised Appraisal Date Maturity or ARD Year Year Beds, Pads
No. DSCR (x) Value ($) Date LTV (%) Date LTV(%) Built Renovated or Rooms
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
79 1.43 9,300,000 2/26/98 64.5 55.8 1966-1967 1984-1986 51,167 Sq Ft
80 1.27 8,000,000 4/1/98 74.9 66.4 1990 N/A 76,720 Sq Ft
81 2.14 13,300,000 11/20/97 45.0 38.6 1939-41 N/A 183 Units
82 1.71 8,700,000 5/1/98 66.1 55.3 1968 N/A 377 Pads
83 1.29 7,800,000 6/11/98 67.3 58.3 1983 N 147,042 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
84 1.34 7,250,000 6/5/98 79.2 68.0 1997/1998 N/A 101 Units
85 1.25 7,740,000 6/6/98 73.6 63.5 1950 1980 86,152 Sq Ft
86 1.25 8,500,000 5/12/98 67.1 53.5 1954-1971 1997 107,670 Sq Ft
87 1.08 6,800,000 5/12/98 83.8 0.0 1992 N/A 52,000 Sq Ft
88 1.45 7,800,000 1/22/98 72.9 64.3 1982 N/A 70,221 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
89 1.35 7,100,000 3/9/98 79.8 70.2 1996-1997 N/A 89 Units
90 1.48 7,100,000 3/1/98 79.3 0.1 1978 1985/1997 127 Beds
91 1.30 7,000,000 4/10/98 80.0 68.6 1987 1997 159 Units
92 1.36 8,700,000 2/5/98 64.3 56.8 1981 N/A 156,585 Sq Ft
93 1.04 5,200,000 6/1/98 106.6 0.0 1998 N/A 27,671 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
94 1.34 7,000,000 3/25/98 78.5 69.1 1961-62 1985 346 Pads
95 1.29 7,200,000 3/6/98 74.8 63.8 1998 N/A 42,131 Sq Ft
96 1.50 8,000,000 5/1/98 66.3 55.4 1964/1967 N/A 467 Pads
97 1.27 6,700,000 2/27/98 78.3 68.8 1982 N/A 256 Units
98 1.00 5,550,000 6/8/98 93.5 0.0 1996 N/A 37,591 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
99 1.00 5,500,000 6/3/98 94.1 0.0 1996 N/A 33,290 Sq Ft
100 1.56 6,900,000 1/5/98 74.4 60.5 1993 1996 140 Rooms
101 1.37 6,818,175 74.7 64.5 Various Various 156 Units
101a 4,000,000 10/15/97 1985 N/A 112 Units
101b 1,373,175 12/9/97 1984 N/A 24 Units
- ------------------------------------------------------------------------------------------------------------------------------------
101c 1,445,000 12/9/97 1985-1987 N/A 20 Units
102 1.34 6,900,000 2/9/98 72.4 64.0 1982 N/A 131,505 Sq Ft
103 1.37 6,300,000 4/7/98 75.1 65.1 1985 Ongoing Since
11/97 274 Units
104 1.29 6,700,000 9/26/97 74.5 68.6 1975 1989-90; 1996 91,245 Sq Ft
105 1.64 5,150,000 5/1/98 75.7 58.9 1987-88 N/A 62,327 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
106 1.22 6,420,000 1/20/98 77.0 57.6 1997 N/A 152 Units
107 1.77 10,000,000 11/20/97 49.0 44.6 1997 N/A 72,779 Sq Ft
108 1.31 6,850,000 1/1/98 71.3 62.8 1940's 1983 73,418 Sq Ft
109 1.24 6,520,000 3/20/98 73.6 64.7 1900,94 59,062 Sq Ft
110 1.00 5,100,000 6/2/98 94.0 0.0 1996 N/A 45,122 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
111 1.75 x $ 7,700,000 1/30/98 62.2% 53.6% 1959-1963 1985 272 Units
112 1.32 6,400,000 4/14/98 74.1 65.4 1985 N/A 78,166 Sq Ft
113 1.68 5,900,000 4/6/98 79.9 50.6 1972 1985 & 1996-1997 122 Beds
114 1.26 6,400,000 11/10/97 73.3 64.9 1910 1977, 1997 29,026 Sq Ft
115 1.39 7,300,000 1/22/98 64.2 55.5 1952-80 1958,79,89 154,007 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
116 1.22 6,900,000 5/1/98 67.8 64.8 1988 N/A 144 Units
117 1.34 5,900,000 3/1/98 79.3 61.2 1964 1996 226 Units
118 1.34 5,850,000 1/8/98 79.8 64.7 1970s 322 Pads
119 1.60 7,525,000 61.9 49.7 Various Various 271,400 Sq Ft
119a 3,000,000 1/27/98 1964-1989 1989 112,000 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
119b 1,700,000 1/27/98 1985-1989 1995 60,000 Sq Ft
119c 1,100,000 1/27/98 1980-1986 N/A 43,400 Sq Ft
119d 1,725,000 1/27/98 1964-1989 1994 / 1997 56,000 Sq Ft
120 1.31 6,240,000 6/24/98 74.1 0.0 1992 N/A 90,000 Sq Ft
121 1.34 5,800,000 2/6/98 79.5 70.6 1973 1996,97 265 Units
- ------------------------------------------------------------------------------------------------------------------------------------
122 1.00 5,000,000 6/9/98 92.0 0.0 1996 N/A 39,259 Sq Ft
123 1.42 5,750,000 3/11/98 80.0 69.7 1996 N/A 72,600 Sq Ft
124 1.30 6,200,000 4/15/98 74.1 68.3 1987 N/A 78,997 Sq Ft
125 1.46 6,100,000 4/17/98 75.0 64.6 1974 1995 252 Units
126 1.26 5,800,000 3/25/98 78.8 70.1 1975 1995 338 Units
- ------------------------------------------------------------------------------------------------------------------------------------
127 1.83 9,400,000 3/6/98 48.0 0.0 1981 N/A 127,801 Sq Ft
128 1.90 6,650,000 5/1/98 67.7 56.6 1971 N/A 296 Pads
129 1.76 6,800,000 5/1/98 66.2 55.3 1985 N/A 229 Pads
130 1.29 6,000,000 3/31/98 74.9 0.0 1986 N/A 66,124 Sq Ft
131 1.28 5,700,000 3/26/98 78.8 68.3 1960/1965 1997 144 Units
- ------------------------------------------------------------------------------------------------------------------------------------
132 1.38 6,580,000 4/15/98 66.1 53.4 Various various 197,124 Sq Ft
132a 1,500,000 4/15/98 1972 1978 61,262 Sq Ft
132b 2,480,000 4/15/98 1972 1987 78,089 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cut-off
Sq. Ft, Unit Replacement Annual
Control Bed, Pad Occupancy Occupancy Ownership Reserve TI/LC
No. or Room ($) Percentage (%) Date Interest Deposit Deposit
=======================================================================================================
<S> <C> <C> <C> <C> <C> <C>
79 117.19 93.0 1/24/98 Fee Simple 17,400 -
80 78.07 100.0 4/1/98 Fee Simple 11,508 24,000
81 32,708.51 99.0 2/11/98 Fee Simple - -
82 15,251.99 95.0 4/25/98 Fee Simple - -
83 39.10 95.0 6/15/98 Fee Simple 27,938 88,560
- -------------------------------------------------------------------------------------------------------
84 56,883.75 95.0 6/23/98 Fee Simple 15,150 -
85 66.16 95.0 7/1/98 Fee Simple 14,051 55,620
86 52.94 98.0 6/15/98 Fee Simple 20,457 83,875
87 109.62 100.0 8/1/98 Fee Simple - -
88 80.95 86.0 3/12/98 Fee Simple 14,044 52,668
- -------------------------------------------------------------------------------------------------------
89 63,645.12 98.9 3/2/98 Fee Simple 20,025 -
90 44,336.47 96.0 3/1/98 Fee Simple - -
91 35,220.13 100.0 4/1/98 Fee Simple - -
92 35.72 100.0 6/3/98 Fee Simple 37,580 110,328
93 200.36 100.0 6/1/98 Leasehold - -
- -------------------------------------------------------------------------------------------------------
94 15,886.99 100.0 3/1/98 Fee Simple 44,823 -
95 127.85 100.0 3/1/98 Fee Simple 5,136 24,996
96 11,349.04 83.0 4/25/98 Fee Simple - -
97 20,489.09 94.2 3/2/98 Fee Simple 57,600 -
98 137.98 100.0 11/27/96 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
99 155.51 100.0 11/27/96 Fee Simple - -
100 36,672.07 62.2 11/30/97 Fee Simple 53,760 -
101 32,641.69 100.0 Fee Simple 35,100 -
101a 100.0 4/16/98 - -
101b 100.0 4/16/98 - -
- -------------------------------------------------------------------------------------------------------
101c 100.0 4/16/98 - -
102 38.00 97.0 5/26/98 Fee Simple 22,662 52,602
103 18,220.41 96.0 3/23/98 Fee Simple 54,804 -
104 54.68 100.0 10/1/97 Fee Simple 9,125 120,000
105 79.42 81.0 5/4/98 Fee Simple 9,357 51,528
- -------------------------------------------------------------------------------------------------------
106 32,540.39 96.0 5/29/98 Fee Simple 30,400 -
107 67.33 100.0 4/1/98 Fee Simple 7,278 -
108 66.52 93.0 1/31/98 Fee Simple 10,827 75,000
109 81.27 95.9 6/1/98 Fee Simple - -
110 106.23 100.0 11/27/96 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
111 17,618.44 90.0% 1/30/98 Fee Simple $ 68,004 $ -
112 60.69 91.3 3/18/98 Fee Simple 11,725 -
113 38,651.56 99.0 6/3/98 Fee Simple - -
114 161.63 100.0 3/20/98 Fee Simple 4,354 14,400
115 30.45 100.0 3/24/98 Fee Simple 59,225 25,000
- -------------------------------------------------------------------------------------------------------
116 32,492.21 89.6 3/31/98 Fee Simple - -
117 20,695.55 95.0 5/4/98 Fee Simple 50,850 -
118 14,503.08 99.0 12/24/97 Fee Simple 6,527 -
119 17.17 95.3 Fee Simple 29,854 75,000
119a 97.0 2/1/98 - -
- -------------------------------------------------------------------------------------------------------
119b 96.0 2/1/98 - -
119c 84.0 2/1/98 - -
119d 100.0 2/1/98 - -
120 51.38 100.0 12/5/97 Fee Simple 9,000 -
121 17,395.75 95.5 12/31/97 Fee Simple 66,252 -
- -------------------------------------------------------------------------------------------------------
122 117.21 100.0 11/27/96 Fee Simple - -
123 63.36 100.0 3/15/98 Fee Simple 7,260 36,850
124 58.15 100.0 3/31/98 Fee Simple 7,900 48,859
125 18,142.21 90.0 6/15/98 Fee Simple 63,504 -
126 13,525.30 90.2 3/31/98 Fee Simple 85,932 -
- -------------------------------------------------------------------------------------------------------
127 35.31 92.0 1/1/98 Leasehold 19,170 -
128 15,202.70 98.0 4/25/98 Fee Simple - -
129 19,650.66 100.0 4/25/98 Fee Simple - -
130 67.98 98.0 3/3/98 Leasehold 13,225 -
131 31,182.18 97.0 4/27/98 Fee Simple 42,912 -
- -------------------------------------------------------------------------------------------------------
132 22.05 75.7 5/8/98 Fee Simple 29,486 -
132a 75.4 3/31/98 - -
132b 69.9 3/31/98 - -
- -------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Largest Tenant
Control Tenant Area Lease Exp. Control
No. Largest Tenant Name Leased (Sq. Ft.) Date No.
=====================================================================================
<S> <C> <C> <C> <C>
79 Any Mountain 19,867 3/31/01 79
80 Dun & Bradstreet 58,900 3/31/08 80
81 John Flynn, DDS 1,575 6/30/98 81
82 82
83 Fluor Daniel, Inc. 49,740 9/14/02 83
- -------------------------------------------------------------------------------------
84 84
85 Village Thrift 24,100 10/8/02 85
86 Village Lanes 35,400 5/31/99 86
87 Sampson Supermarkets, Inc. 52,000 10/31/17 87
88 Sixtex Entps, Inc. 8,565 6/30/01 88
- -------------------------------------------------------------------------------------
89 89
90 HP/Operations Group, Inc. 38,500 5/31/19 90
91 91
92 Transworld Mtg. Corp. 51,439 5/31/02 92
93 Circuit City Stores, Inc. 27,671 1/31/18 93
- -------------------------------------------------------------------------------------
94 94
95 World Equities, L.L.C 42,131 3/31/10 95
96 96
97 97
98 Circuit City, Inc. 37,591 11/30/18 98
- -------------------------------------------------------------------------------------
99 Circuit City, Inc. 33,290 11/30/18 99
100 100
101 101
101a 101a
101b 101b
- -------------------------------------------------------------------------------------
101c 101c
102 Westlake Hardware 25,500 7/31/00 102
103 103
104 World Access, Inc. 42,268 6/30/03 104
105 Factory Card Outlet 13,887 2/29/08 105
- -------------------------------------------------------------------------------------
106 106
107 Coherent Communications 72,779 8/31/12 107
108 O'Hagan, Smith & Amundsen 8,204 8/31/98 108
109 Essex Corporation 14,960 1/31/00 109
110 Circuit City, Inc. 45,122 11/30/18 110
- -------------------------------------------------------------------------------------
111 111
112 Amal. Software 11,770 11/30/99 112
113 113
114 Learning Institute 8,700 6/1/07 114
115 Ohio Thrift Stores 27,500 2/28/03 115
- -------------------------------------------------------------------------------------
116 116
117 117
118 118
119 119
119a Stylecraft Kitchens, Inc. 16,000 12/1/98 119a
- -------------------------------------------------------------------------------------
119b Van Dyne Crotty, Inc. 15,000 6/1/00 119b
119c Southern Power and Controls 6,000 3/1/01 119c
119d Lyndan, Inc. 11,800 9/1/99 119d
120 Builders Square, Inc. 90,000 8/31/17 120
121 121
- -------------------------------------------------------------------------------------
122 Circuit City, Inc. 39,259 11/30/18 122
123 Epilog Corporation 18,000 8/31/01 123
124 Curtin Mathison 31,693 12/31/00 124
125 125
126 126
- -------------------------------------------------------------------------------------
127 Ukrops 34,512 6/30/05 127
128 128
129 129
130 Giant Food Store 40,743 11/30/08 130
131 131
- -------------------------------------------------------------------------------------
132 132
132a 132a
132b 132b
- -------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ITALICS indicate mortgage loans secured by multiple properties.
<TABLE>
<CAPTION>
Control Loan
No. Seller Number Property Name
========================================================================================================
<S> <C> <C> <C>
132c Lehman Brothers 980127071C Extra Space Center (Property Level)
133 GMACCM GMAC1360 The Parkview
- --------------------------------------------------------------------------------------------------------
134 Lehman Brothers 971016054 Beachwood Apartments
135 Lehman Brothers 980120067 Woodlyn Shopping Center (East) a/k/a Hechinger Plaza
136 Lehman Brothers 980204044 Country Meadows Mobile Home Park
137 Lehman Brothers 4 Brookside ALF
138 Lehman Brothers 980401012 801 Penn. Ave. Dc
- --------------------------------------------------------------------------------------------------------
139 Lehman Brothers 980219003 Tartan Place Apartments
140 Lehman Brothers 980219006 Green Gate Office Park
141 Lehman Brothers 971223027 9939 Norwalk Blvd & SW Corner of Geary Ave.
142 Lehman Brothers 980127003 Village Square Mall
143 Lehman Brothers 971217004 Walgreen
- --------------------------------------------------------------------------------------------------------
144 Lehman Brothers 980309001 Ramona Plaza
145 Lehman Brothers 971222014 500 Building
146 GMACCM GMAC1380 Ten Oaks Retirement Community(TORCH)
147 GMACCM GMAC2520 Ramada Inn Newport
148 Lehman Brothers 980204040 Promontory Point Apartments
- --------------------------------------------------------------------------------------------------------
149 Lehman Brothers 980204016 Paramount Plaza
150 GMACCM GMAC1150 Preferred Freezer Warehouse
151 GMACCM GMAC2250 Vroman's Bookstore
152 Lehman Brothers 28 West Lake Self Storage
153 Lehman Brothers 980127011 Winterbrook Apartments
- --------------------------------------------------------------------------------------------------------
154 Lehman Brothers 970820046 HomeBase Home Improvement Store
155 Lehman Brothers 970827037 Lakeside Downs Apartments
156 Lehman Brothers 970924009 Eckerd San Antonio
157 Lehman Brothers 971029045 Strattford Lakes Apartments
158 Lehman Brothers 971003018 Concord Center
- --------------------------------------------------------------------------------------------------------
159 Lehman Brothers 980408002 Oak Hills
160 GMACCM GMAC3150 Kimberly Woods Apartments
161 GMACCM GMAC2260 110 Fulton Street-Corporate Apartments
162 Lehman Brothers 980311023 Plaza Linda Vista
163 Lehman Brothers 971209027 Westridge Plaza Shopping Center (Ames/Hyvee)
- --------------------------------------------------------------------------------------------------------
164 Lehman Brothers 970819000 Walgreens
165 GMACCM GMAC1420 Park Plaza II
166 GMACCM GMAC1390 Parkwild Apartments
167 Lehman Brothers 980303027 Martinez Self Storage
168 Lehman Brothers 980225008 Hemet Plaza Shopping Center
- --------------------------------------------------------------------------------------------------------
169 Lehman Brothers 980330001 Congress Square
170 Lehman Brothers 980106033C 1111 South Willow Street
171 Lehman Brothers 970802003 Walgreens - Richmond
172 Lehman Brothers 970304018 Orangetree Plaza Shopping Center
173 GMACCM GMAC3140 Columbia Court Apartments
- --------------------------------------------------------------------------------------------------------
174 Lehman Brothers 980303046 1200 High Ridge Road
175 Lehman Brothers 980422028 Flint Hill Pointe Apartments
176 Lehman Brothers 970925003 Waterside 1 Apartments
177 GMACCM GMAC1400 Doctors Professional Building
178 Lehman Brothers 980211013 1500 Gateway Plaza
- --------------------------------------------------------------------------------------------------------
179 GMACCM GMAC1410 Oasis Water Park
180 Lehman Brothers 971105064 Indian Valley Shopping Center
181 Lehman Brothers 980601999H Circuit City (Property Level)
182 GMACCM GMAC2280 The Cedar Village Apartments
183 Lehman Brothers 971217055 401 Griffin Brook Drive
- --------------------------------------------------------------------------------------------------------
184 GMACCM GMAC2000 Mulberry Station Apartments
185 Lehman Brothers 980106028 Oak Hollow Apartments
186 Lehman Brothers 980211045 355-367 Research Parkway
187 Lehman Brothers 971107007 Walgreen (Dallas)
188 Lehman Brothers 971016057 Arbor Shopping Center
- --------------------------------------------------------------------------------------------------------
189 Lehman Brothers 971217071 Waterford Condominiums
190 GMACCM GMAC1450 Walgreens Drug Store (Council Bluffs, IA.)
191 Lehman Brothers 971022050 Bayway Shopping Center
192 Lehman Brothers 970731029 Colony Plaza Shopping Center
193 GMACCM GMAC1440 Rolling Oaks Plaza
- --------------------------------------------------------------------------------------------------------
194 Lehman Brothers 980211065 170 Meeting Street
195 Lehman Brothers 971113003 Dracut Village Shopping Center
196 GMACCM GMAC2310 Villa Cezanne Apartments
197 GMACCM GMAC2703 Uniprop - Camelot Villa
198 Lehman Brothers 971029043 Office/Laboratory Industrial Facility
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Control
No. Property Type Address City
==================================================================================================================================
<S> <C> <C> <C>
132c Self Storage 21338 Lake Patience Road Land O Lakes
133 Healthcare - Congregate Care 1914 Poplar Avenue Memphis
- ----------------------------------------------------------------------------------------------------------------------------------
134 Multifamily 2827 North 51st Avenue Phoenix
135 Retail - Anchored Southeast side of Macdade Boulevard Ridley Township
136 Multifamily - Mobile Home Park 5121 Clinton Street Road (Route 33) Batavia
137 Healthcare - Assisted Living 4450 Hamilton Mill Road Buford
138 Office 801 Pennsylvania Avenue, S.E. Washington D.C.
- ----------------------------------------------------------------------------------------------------------------------------------
139 Multifamily 401 Tartan Court Fayetteville
140 Office 25 Woods Lake Road Greenville
141 Industrial 9939 Norwalk Blvd & SW Corner of Geary Ave. Santa Fe Springs
142 Retail - Anchored U.S. 45 @ 4th Street Effingham
143 CTL - Retail 2859 Long Beach Road Oceanside
- ----------------------------------------------------------------------------------------------------------------------------------
144 Retail - Unanchored 11104 Ramona Boulevard El Monte
145 Office 500 Office Park Drive Birmingham
146 Healthcare - Assisted Living 3610 SE Huntington Circle Lawton
147 Hotel - Limited Service 936 West Main Road Middletown
148 Multifamily 2250 Ridgepoint Austin
- ----------------------------------------------------------------------------------------------------------------------------------
149 Office 14502 North Dale Mabry Highway Tampa
150 Industrial 2900 NW 75th Street Miami
151 Retail - Unanchored 695 East Colorado Blvd. Pasadena
152 Self Storage 2550 Willow Lane Thousand Oaks
153 Multifamily 6701 Winters Chapel Road Doraville
- ----------------------------------------------------------------------------------------------------------------------------------
154 Retail - Anchored 1050 West Hampden Avenue Engelwood
155 Multifamily 2115 Oxford Square Court Memphis
156 CTL - Retail 5454 East Walzem Road San Antonio
157 Multifamily 6690 Strattford Lakes Boulevard Canal Winchester
158 Office 10 Ferry Street Concord
- ----------------------------------------------------------------------------------------------------------------------------------
159 Retail - Unanchored 7959 Fredericksburg Road San Antonio
160 Multifamily 8600 International Avenue Canoga Park
161 Multifamily 110 Fulton Street New York
162 Office 1525 State Street Santa Barbara
163 Retail - Anchored 3712-3800 Lincoln Way Ames
- ----------------------------------------------------------------------------------------------------------------------------------
164 CTL - Retail 1649 West Belmont Avenue Chicago
165 Retail - Unanchored 33 Office Park Road Hilton Head
166 Multifamily 1800-1961 Parkwild West Road Council Bluff
167 Self Storage 111 Muir Station Road Martinez
168 Retail - Anchored 2099 E. Florida Avenue Hemet
- ----------------------------------------------------------------------------------------------------------------------------------
169 Retail - Anchored 100 S Congress Avenue Delray Beach
170 Retail - Unanchored 1111 South Willow Street Manchester
171 CTL - Retail Forest Hills Boulevard and Westover Blvd. Richmond
172 Retail - Anchored NWC McKellips & Gilbert Roads Mesa
173 Multifamily 369 South Columbia Avenue Los Angeles
- ----------------------------------------------------------------------------------------------------------------------------------
174 Office 1200 High Ridge Road Stamford
175 Multifamily 585 Flint Hill Road Bessemer
176 Multifamily 4070 Green Isle Way Saginaw
177 Office 280 N. Smith Avenue St. Paul
178 Retail - Unanchored 1500 Air Depot Midwest City
- ----------------------------------------------------------------------------------------------------------------------------------
179 Other - Amusement/Recreation 1500 S. Gene Autry Trail Palm Springs
180 Retail - Anchored 245-305 Deo Drive Newark
181 CTL - Retail 4110 Atlanta Highway Athens
182 Multifamily 2850 E. Cedar Avenue Las Vegas
183 Office 401 Griffen Brook Drive Methuen
- ----------------------------------------------------------------------------------------------------------------------------------
184 Multifamily 203 South Second Street Harrisburg
185 Multifamily 2601 Bill Owens Parkway Longview
186 Office 355-367 Research Parkway Meriden
187 CTL - Retail 5101 South Lancaster R Dallas
188 Retail - Anchored 4700 Hardy Street Hattiesburg
- ----------------------------------------------------------------------------------------------------------------------------------
189 Multifamily 2401 Leon Street Austin
190 CTL - Retail 515 East Broadway Council Bluffs
191 Retail - Anchored 1141-1211 West NASA Road 1 Webster
192 Retail - Anchored 4705 State Highway 6 South Missouri City
193 Retail - Unanchored 55, 77 & 99 Rolling Oaks Drive Thousand Oaks
- ----------------------------------------------------------------------------------------------------------------------------------
194 Office 170 Meeting Street Charleston
195 Retail - Unanchored 14 Loon Hill Road / 45 & 103 Broadway Dracut
196 Multifamily 949 North Larrabee Street West Hollywood
197 Multifamily - Mobile Home Park 8300 Coventry Blvd Mt. Morris
198 Industrial 8248 Lackland Road St. John
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial Mortgage
No. State Code Groups Balance ($) Balance ($) Balance Pool Balance Rate (%)
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
132c FL 34639 7.3300
133 TN 38104 No 4,300,000 4,295,098 0.17 74.68 7.5000
- -----------------------------------------------------------------------------------------------------------------------
134 AZ 85035 No 4,300,000 4,277,874 0.17 74.85 7.2600
135 PA 19094 No 4,275,000 4,272,359 0.17 75.01 7.0400
136 NY 14020 No 4,240,000 4,234,445 0.17 75.18 7.4100
137 GA 30518 No 4,250,000 4,230,998 0.17 75.34 7.3400
138 DC 20003 No 4,200,000 4,197,469 0.16 75.51 7.1200
- -----------------------------------------------------------------------------------------------------------------------
139 NC 28311 No 4,200,000 4,197,326 0.16 75.67 6.9400
140 SC 29607 No 4,200,000 4,192,137 0.16 75.84 7.4000
141 CA 90670 No 4,165,000 4,159,557 0.16 76.00 7.4200
142 IL 62401 No 4,150,000 4,144,792 0.16 76.16 7.5800
143 NY 11572 No 4,116,108 4,110,711 0.16 76.32 7.1300
- -----------------------------------------------------------------------------------------------------------------------
144 CA 91731 No 4,100,000 4,097,452 0.16 76.48 7.0200
145 AL 35223 No 4,100,000 4,095,890 0.16 76.64 7.1700
146 OK 73501 No 4,100,000 4,095,326 0.16 76.80 7.5000
147 RI 02842 No 4,000,000 4,000,000 0.16 76.95 7.8750
148 TX 78754 No 4,000,000 3,991,756 0.16 77.11 7.0400
- -----------------------------------------------------------------------------------------------------------------------
149 FL 33618 No $ 4,000,000 $ 3,982,233 0.16% 77.27% 7.1800%
150 FL 33147 No 4,000,000 3,964,918 0.15 77.42 7.6500
151 CA 91101 No 3,950,000 3,945,630 0.15 77.57 7.0000
152 CA 91362 No 3,915,000 3,909,753 0.15 77.73 7.3200
153 GA 30360 No 3,912,000 3,903,917 0.15 77.88 7.0300
- -----------------------------------------------------------------------------------------------------------------------
154 CO 80110 No 3,900,000 3,889,403 0.15 78.03 7.2900
155 TN 38116 No 3,840,000 3,837,563 0.15 78.18 6.9500
156 TX 78218 No 3,830,000 3,823,669 0.15 78.33 7.2100
157 OH 43110 No 3,795,384 3,788,163 0.15 78.48 7.3900
158 NH 03301 No 3,750,000 3,745,124 0.15 78.62 7.4400
- -----------------------------------------------------------------------------------------------------------------------
159 TX 78229 No 3,750,000 3,742,086 0.15 78.77 7.4200
160 CA 91304 No 3,740,000 3,740,000 0.15 78.92 6.7600
161 NY 10038 No 3,700,000 3,696,553 0.14 79.06 7.8750
162 CA 93101 No 3,700,000 3,694,854 0.14 79.20 7.1700
163 IA 50010 No 3,700,000 3,684,611 0.14 79.35 7.4300
- -----------------------------------------------------------------------------------------------------------------------
164 IL 60657 No 3,682,600 3,660,686 0.14 79.49 6.8400
165 SC 29928 No 3,600,000 3,600,000 0.14 79.63 7.1500
166 IA 51503 No 3,600,000 3,597,049 0.14 79.77 7.0000
167 CA 94553 No 3,600,000 3,596,639 0.14 79.91 7.4900
168 CA 92544 No 3,600,000 3,595,188 0.14 80.05 7.3300
- -----------------------------------------------------------------------------------------------------------------------
169 FL 33445 No 3,600,000 3,593,407 0.14 80.19 7.4800
170 NH 03103 No 3,600,000 3,588,272 0.14 80.33 7.1200
171 VA 23225 No 3,547,600 3,547,600 0.14 80.47 7.3800
172 AZ 85203 No 3,532,000 3,501,491 0.14 80.61 9.0000
173 CA 90017 No 3,500,000 3,500,000 0.14 80.74 6.7600
- -----------------------------------------------------------------------------------------------------------------------
174 CT 06903 No 3,500,000 3,497,650 0.14 80.88 6.7600
175 AL 35022 No 3,500,000 3,495,368 0.14 81.02 7.3700
176 MI 48603 No 3,500,000 3,495,298 0.14 81.15 7.3100
177 MN 55102 No 3,500,000 3,491,891 0.14 81.29 7.2500
178 OK 73110 No 3,500,000 3,489,358 0.14 81.42 7.4700
- -----------------------------------------------------------------------------------------------------------------------
179 CA 92264 No 3,450,000 3,450,000 0.13 81.56 7.9900
180 OH 43055 No 3,450,000 3,442,021 0.13 81.69 7.3400
181 GA 30606 No 3,508,225 3,403,334 0.13 81.83 7.9600
182 NV 89101 No 3,400,000 3,400,000 0.13 81.96 6.9100
183 MA 01844 No 3,375,000 3,365,784 0.13 82.09 7.2700
- -----------------------------------------------------------------------------------------------------------------------
184 PA 17104 No 3,350,000 3,344,914 0.13 82.22 7.2200
185 TX 75064 No 3,300,000 3,293,601 0.13 82.35 7.2700
186 CT 06450 No 3,300,000 3,289,825 0.13 82.48 7.4000
187 TX 75241 No 3,287,800 3,277,670 0.13 82.60 7.1900
188 MS 39402 No 3,200,000 3,195,870 0.12 82.73 7.4700
- -----------------------------------------------------------------------------------------------------------------------
189 TX 78705 No 3,200,000 3,193,762 0.12 82.85 7.2500
190 IA 51503 No 3,200,000 3,193,495 0.12 82.98 6.9100
191 TX 77598 No 3,200,000 3,191,284 0.12 83.10 7.2800
192 TX 77459 No 3,193,948 3,185,596 0.12 83.23 7.5400
193 CA 91361 No 3,172,500 3,167,863 0.12 83.35 7.3750
- -----------------------------------------------------------------------------------------------------------------------
194 SC 29401 No $ 3,150,000 $ 3,145,736 0.12% 83.47% 7.2800%
195 MA 01826 No 3,150,000 3,143,439 0.12 83.60 7.4900
196 CA 90069 No 3,100,000 3,100,000 0.12 83.72 6.6100
197 MI 48458 No 3,100,000 3,100,000 0.12 83.84 6.3500
198 MO 63114 No 3,100,000 3,095,794 0.12 83.96 7.2700
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Master Interest Original Remaining Term to Term to Original
Control Servicing Servicing Accrual Amortization Interest-Only Interest-Only Maturity Maturity Amortization
No. Fee Fee Method Type Period (Mos.) Period (Mos.) (Mos.) (Mos.) Term (Mos.)
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
132c
133 30/360 Balloon 0 0 120 119 300
- ---------------------------------------------------------------------------------------------------------------------------------
134 Act/360 Balloon 0 0 84 77 360
135 Act/360 Balloon 0 0 120 119 360
136 Act/360 Balloon 0 0 120 118 360
137 Act/360 Balloon 0 0 120 114 360
138 Act/360 Balloon 0 0 120 119 360
- ---------------------------------------------------------------------------------------------------------------------------------
139 Act/360 Balloon 0 0 120 119 360
140 Act/360 Balloon 0 0 120 117 360
141 Act/360 Hyperamortizing 0 0 120 118 360
142 Act/360 Balloon 0 0 120 118 360
143 30/360 Balloon 0 0 240 239 289
- ---------------------------------------------------------------------------------------------------------------------------------
144 Act/360 Balloon 0 0 144 143 360
145 Act/360 Balloon 0 0 120 119 300
146 30/360 Balloon 0 0 120 119 300
147 Act/360 Hyperamortizing 0 0 123 123 300
148 Act/360 Balloon 0 0 120 117 360
- ---------------------------------------------------------------------------------------------------------------------------------
149 Act/360 Balloon 0 0 120 116 300
150 Act/360 Fully Amortizing 0 0 180 177 180
151 Act/360 Balloon 0 0 156 155 300
152 Act/360 Balloon 0 0 120 118 360
153 Act/360 Balloon 0 0 120 117 360
- ---------------------------------------------------------------------------------------------------------------------------------
154 Act/360 Balloon 0 0 60 56 360
155 Act/360 Balloon 0 0 120 119 360
156 30/360 Step 0 0 237 235 293
157 Act/360 Hyperamortizing 0 0 178 175 359
158 Act/360 Balloon 0 0 120 118 360
- ---------------------------------------------------------------------------------------------------------------------------------
159 Act/360 Balloon 0 0 120 118 300
160 Act/360 Balloon 0 0 120 120 360
161 Act/360 Balloon 0 0 120 119 300
162 Act/360 Balloon 0 0 120 118 360
163 30/360 Fully Amortizing 0 0 276 273 276
- ---------------------------------------------------------------------------------------------------------------------------------
164 30/360 Fully Amortizing 0 0 239 236 239
165 Act/360 Balloon 0 0 120 120 360
166 30/360 Balloon 0 0 120 119 360
167 Act/360 Balloon 0 0 120 119 300
168 Act/360 Balloon 0 0 120 118 360
- ---------------------------------------------------------------------------------------------------------------------------------
169 Act/360 Balloon 0 0 120 117 360
170 Act/360 Balloon 0 0 120 117 300
171 30/360 Balloon 0 0 240 240 300
172 30/360 Balloon 0 0 120 105 360
173 Act/360 Balloon 0 0 119 119 360
- ---------------------------------------------------------------------------------------------------------------------------------
174 Act/360 Balloon 0 0 120 119 360
175 Act/360 Balloon 0 0 180 178 360
176 Act/360 Balloon 0 0 120 118 360
177 Act/360 Balloon 0 0 120 118 300
178 Act/360 Balloon 0 0 84 81 300
- ---------------------------------------------------------------------------------------------------------------------------------
179 Act/360 Fully Amortizing 0 0 120 120 120
180 30/360 Balloon 0 0 120 117 360
181 30/360 Fully Amortizing 0 0 264 244 264
182 Act/360 Balloon 0 0 120 120 360
183 Act/360 Balloon 0 0 120 116 360
- ---------------------------------------------------------------------------------------------------------------------------------
184 Act/360 Balloon 0 0 120 118 360
185 Act/360 Balloon 0 0 120 117 360
186 Act/360 Balloon 0 0 120 117 300
187 30/360 Balloon 0 0 229 227 267
188 Act/360 Balloon 0 0 120 118 360
- ---------------------------------------------------------------------------------------------------------------------------------
189 Act/360 Balloon 0 0 120 117 360
190 30/360 Fully Amortizing 0 0 234 233 234
191 Act/360 Balloon 0 0 120 116 360
192 Act/360 Balloon 0 0 117 113 357
193 Act/360 Balloon 0 0 120 118 361
- ---------------------------------------------------------------------------------------------------------------------------------
194 Act/360 Balloon 0 0 120 118 360
195 Act/360 Balloon 0 0 180 178 300
196 Act/360 Balloon 0 0 120 120 360
197 Act/360 Hyperamortizing 0 0 126 126 360
198 Act/360 Balloon 0 0 120 118 360
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Remaining Underwritten
Control Amortization Origination Maturity Balloon Annual Net
No. Term (Mos.) Date or ARD Balance ($) Prepayment Provisions Debt Service ($) Cash Flow ($)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
132c
133 299 6/16/98 7/1/08 3,427,853 YM1%(9.5),O(.5) 381,319 544,000
- -----------------------------------------------------------------------------------------------------------------------------------
134 353 12/11/97 1/1/05 3,974,659 L(3),D(3.5),O(.5) 352,353 469,923
135 359 6/15/98 7/1/08 3,733,415 L(4),D(5.75),O(.25) 342,679 465,252
136 358 5/14/98 6/1/08 3,738,105 L(4),D(5.75),O(.25) 352,630 477,392
137 354 1/14/98 2/1/08 3,737,607 L(5),YM1%(4.5),O(.5) 351,029 480,318
138 359 6/9/98 7/1/08 3,675,656 L(4),D(5.75),O(.25) 339,384 466,201
- -----------------------------------------------------------------------------------------------------------------------------------
139 359 6/2/98 7/1/08 3,658,171 L(4),D(5.75),O(.25) 333,284 442,491
140 357 4/22/98 5/1/08 3,702,487 L(4),D(5.75),O(.25) 348,959 473,413
141 358 5/7/98 6/1/08 3,672,914 L(4),YM1%(5.75),O(.25) 346,734 454,137
142 358 5/22/98 6/1/08 3,674,461 L(4),D(5.75),O(.25) 350,941 447,151
143 288 6/8/98 7/1/18 1,260,001 L(10),D(10) 358,239 366,479
- -----------------------------------------------------------------------------------------------------------------------------------
144 359 6/17/98 7/1/10 3,421,787 L(4),D(7.75),O(.25) 327,990 436,384
145 299 6/10/98 7/1/08 3,298,168 L(4),D(5.75),O(.25) 353,089 465,318
146 299 6/16/98 7/1/08 3,268,418 YM1%(9.5),O(.5) 363,584 514,000
147 300 7/1/98 11/1/08 3,201,594 L(4),D(5.917),O(.333) 370,212 574,840
148 357 3/31/98 5/1/08 3,493,356 L(4),D(5.5),O(.5) 320,636 621,988
- -----------------------------------------------------------------------------------------------------------------------------------
149 296 3/26/98 4/1/08 $ 3,218,382 L(4),D(5.75),O(.25) $ 344,786 $ 482,056
150 177 5/1/98 5/1/13 - YM1%(14.417),O(.583) 452,217 610,596
151 299 6/24/98 7/1/11 2,725,209 L(2.083),D(10.417),O(.5) 338,158 531,101
152 358 5/25/98 6/1/08 3,443,650 L(5),YM1%(4.75),O(.25) 322,720 390,076
153 357 4/3/98 5/1/08 3,415,597 L(4),D(5.75),O(.25) 313,266 402,077
- -----------------------------------------------------------------------------------------------------------------------------------
154 356 3/31/98 4/1/03 3,706,658 L(2),D(2.75),O(.25) 320,529 419,501
155 359 6/3/98 7/1/08 3,345,508 L(4),D(5.75),O(.25) 305,026 398,319
156 291 5/7/98 3/1/18 1,422,761 L(8),D(11.75) 314,016 314,958
157 356 4/30/98 3/1/13 2,961,741 L(4),D(10.584),O(.25) 315,414 376,882
158 358 5/8/98 6/1/08 3,308,624 L(4),D(5.67),O(.33) 312,800 400,830
- -----------------------------------------------------------------------------------------------------------------------------------
159 298 5/13/98 6/1/08 3,039,285 L(4),YM1%(5.75),O(.25) 330,208 463,962
160 360 7/15/98 8/10/08 3,198,911 L(2),D(7.5),O(.5) 294,350 387,887
161 299 6/12/98 7/1/08 2,987,775 L(2.083),D(7.417),O(.5) 342,446 425,338
162 358 5/27/98 6/1/08 3,241,931 L(4),D(5.75),O(.25) 300,481 402,425
163 273 4/14/98 5/1/21 - L(7),D(15.5),O(.5) 336,085 428,138
- -----------------------------------------------------------------------------------------------------------------------------------
164 236 4/30/98 4/1/18 - L(8),D(11.91) 339,046 347,240
165 360 7/23/98 8/1/08 3,107,767 L(2),D(7.5),O(.5) 294,839 409,872
166 359 6/15/98 7/1/08 3,089,246 YM1%(9.5),O(.5) 287,411 379,724
167 299 6/22/98 7/1/08 2,924,309 L(4),D(5.75),O(.25) 318,963 440,500
168 358 5/27/98 6/1/08 3,167,387 L(4),D(5.5),O(.5) 297,048 393,543
- -----------------------------------------------------------------------------------------------------------------------------------
169 357 4/2/98 5/1/08 3,180,011 L(4),D(5.75),O(.25) 301,469 443,288
170 297 4/17/98 5/1/08 2,891,581 L(5),D(4.75),O(.25) 308,644 510,399
171 300 6/26/98 8/1/18 1,298,244 L(10),D(10) 311,282 312,219
172 345 4/15/97 5/1/07 3,158,659 L(4),YM1%(1),5(1),4(1),3(1),2(1),
1(.5),O(.5) 341,031 409,864
173 360 7/15/98 7/10/08 2,999,131 L(2),D(7.417),O(.5) 275,461 359,371
- -----------------------------------------------------------------------------------------------------------------------------------
174 359 6/19/98 7/1/08 3,033,699 L(4),D(5.75),O(.25) 272,690 447,572
175 358 5/22/98 6/1/13 2,723,333 L(7),D(7.75),O(.25) 289,940 379,946
176 358 5/12/98 6/1/08 3,077,824 L(4),D(5.75),O(.25) 288,225 370,666
177 298 5/29/98 6/1/08 2,779,560 L(2.167),D(7.333),O(.5) 306,467 980,434
178 297 4/17/98 5/1/05 3,093,337 L(4),D(2.75),O(.25) 309,557 431,767
- -----------------------------------------------------------------------------------------------------------------------------------
179 120 7/17/98 8/1/08 39,510 YM1%(9.5),O(.5) 502,077 706,759
180 357 4/16/98 5/1/08 2,983,779 L(5),D(4.5),O(.5) 284,953 369,023
181 244 11/27/96 12/1/18 - L(1),YM(21) 338,315 338,315
182 360 7/31/98 8/1/08 2,918,625 L(2),D(7.5),O(.5) 271,750 369,356
183 356 3/11/98 4/1/08 2,964,938 L(4),YM1%(5.66),O(.33) 276,831 366,359
- -----------------------------------------------------------------------------------------------------------------------------------
184 358 5/7/98 6/1/08 2,896,604 L(2.167),D(7.333),O(.5) 276,310 345,044
185 357 4/30/98 5/1/08 2,899,408 L(4),D(5.66),O(.33) 270,679 354,954
186 297 4/16/98 5/1/08 2,673,446 L(4),D(5.5),O(.5) 290,070 406,854
187 265 5/13/98 7/1/17 820,389 L(8),D(11.08) 296,993 303,824
188 358 5/28/98 6/1/08 2,825,504 L(4),D(5.5),O(.5) 267,710 357,240
- -----------------------------------------------------------------------------------------------------------------------------------
189 357 4/27/98 5/1/08 2,810,093 L(4),D(5.75),O(.25) 261,956 350,886
190 233 6/4/98 1/1/18 - L(2.083),D(16.917),O(.5) 299,178 307,914
191 356 3/25/98 4/1/08 2,811,927 L(4),D(5.75),O(.25) 262,737 366,656
192 353 11/26/97 1/1/08 2,829,827 L(3.75),D(5.5),O(.5) 269,640 345,120
193 359 6/4/98 6/1/08 2,755,179 L(2.083),D(7.417),O(.5) 265,593 351,739
- -----------------------------------------------------------------------------------------------------------------------------------
194 358 5/22/98 6/1/08 $ 2,767,903 L(4),D(5.75),O(.25) $ 258,632 $ 359,712
195 298 5/28/98 6/1/13 2,045,162 L(4),D(10.75),O(.25) 279,093 419,497
196 360 7/7/98 8/1/08 2,641,754 L(2),D(7.5),O(.5) 240,211 412,114
197 360 7/13/98 2/10/09 2,592,361 L(2),D(7.75),O(.75) 233,736 433,665
198 358 5/11/98 6/1/08 2,723,267 L(5),D(4.75),O(.25) 254,274 359,954
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten Cut-off Scheduled Sq. Ft, Units
Control NCF Appraised Appraisal Date Maturity or ARD Year Year Beds, Pads
No. DSCR (x) Value ($) Date LTV (%) Date LTV(%) Built Renovated or Rooms
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
132c 2,600,000 4/15/98 1983-84 1987 57,773 Sq Ft
133 1.43 6,900,000 1/28/97 62.3 49.7 1924 1965 132 Beds
- ------------------------------------------------------------------------------------------------------------------------------------
134 1.33 5,430,000 8/14/97 78.8 73.2 1981 N/A 213 Units
135 1.36 5,700,000 1/14/98 75.0 65.5 1960 1982 81,856 Sq Ft
136 1.35 5,300,000 3/14/98 79.9 70.5 1970 N/A 203 Pads
137 1.37 6,400,000 12/1/97 66.1 58.4 1995 60 Beds
138 1.37 5,300,000 5/21/98 79.2 69.4 1890's 1987 62,230 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
139 1.33 5,300,000 3/5/98 79.2 69.0 1985 N/A 104 Units
140 1.36 6,000,000 3/9/98 69.9 61.7 1974 1997 103,152 Sq Ft
141 1.31 5,880,000 1/28/98 70.7 62.5 1995 N/A 89,499 Sq Ft
142 1.27 5,600,000 3/11/98 74.0 65.6 1973 1996 231,139 Sq Ft
143 1.02 4,320,000 7/1/98 95.2 29.2 1998 N/A 13,905 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
144 1.33 5,500,000 2/20/98 74.5 62.2 1959 1996 43,453 Sq Ft
145 1.32 5,500,000 2/27/98 74.5 60.0 1972 1996/1997 66,181 Sq Ft
146 1.41 6,950,000 1/30/98 58.9 47.0 1989 1998 100 Units
147 1.55 6,200,000 4/1/98 64.5 51.6 1958 1987 and 1998 162 Rooms
148 1.94 8,500,000 3/11/98 47.0 41.1 1984 N/A 252 Units
- ------------------------------------------------------------------------------------------------------------------------------------
149 1.40 x $ 5,400,000 2/18/98 73.8% 59.6% 1985 N/A 62,000 Sq Ft
150 1.35 7,000,000 3/25/98 56.6 0.0 1967 1995 197,640 Sq Ft
151 1.57 6,100,000 4/28/98 64.7 44.7 1953 1970 and 1996 32,288 Sq Ft
152 1.21 5,090,000 2/18/98 76.8 67.7 1989 487 Units
153 1.28 4,890,000 2/5/98 79.8 69.9 1973 1992-1993 106 Units
- ------------------------------------------------------------------------------------------------------------------------------------
154 1.31 5,600,000 11/4/97 69.5 66.2 1987 N/A 92,000 Sq Ft
155 1.31 4,800,000 4/30/98 80.0 69.7 1968 N/A 228 Units
156 1.00 3,830,000 5/1/98 99.8 37.2 1998 N/A 10,908 Sq Ft
157 1.19 4,500,000 11/25/97 84.2 65.8 1996 N/A 124 Units
158 1.28 5,000,000 5/1/98 74.9 66.2 1800s 1980s 166,693 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
159 1.41 5,000,000 4/14/98 74.8 60.8 1985 N/A 60,857 Sq Ft
160 1.32 4,900,000 6/8/98 76.3 65.3 1972 1997 112 Units
161 1.24 4,650,000 3/1/98 79.5 64.3 1929 1996-1997 28 Units
162 1.34 5,500,000 4/10/98 67.2 58.9 1987 N/A 25,445 Sq Ft
163 1.27 4,800,000 1/28/98 76.8 0.0 1977 1995-6 136,808 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
164 1.02 3,700,000 2/1/98 98.9 0.0 1998 N/A 18,308 Sq Ft
165 1.59 4,200,000 3/25/98 75.0 64.8 1985 N/A 44,141 Sq Ft
166 1.32 4,500,000 3/1/98 79.9 68.7 1974 1997 134 Units
167 1.38 4,480,000 3/24/98 80.3 65.3 1985 N/A 59,562 Sq Ft
168 1.32 4,900,000 1/10/98 73.4 64.6 1960 1988, 1995 58,970 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
169 1.47 4,800,000 12/2/97 74.9 66.3 1984 N/A 77,226 Sq Ft
170 1.65 6,275,000 1/8/98 57.2 46.1 1972 N/A 56,768 Sq Ft
171 1.00 3,600,000 5/1/98 98.5 36.1 1998 N/A 13,905 Sq Ft
172 1.20 5,400,000 6/19/98 64.8 58.5 1986 1997 80,938 Sq Ft
173 1.30 4,800,000 6/8/98 72.9 62.5 1987 1997/1998 139 Units
- ------------------------------------------------------------------------------------------------------------------------------------
174 1.64 5,700,000 5/1/98 61.4 53.2 1969 N/A 58,948 Sq Ft
175 1.31 4,690,000 4/21/98 74.5 58.1 1997 N/A 136 Units
176 1.29 4,400,000 11/11/97 79.4 70.0 1973 N/A 168 Units
177 3.20 9,000,000 4/1/98 38.8 30.9 1972 1978 67,971 Sq Ft
178 1.39 4,750,000 1/30/98 73.5 65.1 1961 1985-92 92,139 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
179 1.41 7,920,000 10/31/97 43.6 0.5 1985 N/A 21,786 Sq Ft
180 1.30 4,750,000 1/22/98 72.5 62.8 1979,1980 N/A 102,099 Sq Ft
181 1.00 3,700,000 6/8/98 92.0 0.0 1996 N/A 28,789 Sq Ft
182 1.36 6,125,000 4/24/98 55.5 47.7 1984 N/A 154 Units
183 1.32 4,600,000 2/18/98 73.2 64.5 1997 N/A 42,075 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
184 1.25 4,200,000 4/8/98 79.6 69.0 1989 N/A 100 Units
185 1.31 4,725,000 3/23/98 69.7 61.4 1980 N/A 200 Units
186 1.40 4,600,000 3/23/98 71.5 58.1 1991 N/A 61,000 Sq Ft
187 1.02 3,500,000 4/1/98 93.7 23.4 1997 N/A 13,905 Sq Ft
188 1.33 4,750,000 12/11/97 67.3 59.5 1987 N/A 73,679 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
189 1.34 4,133,000 2/18/98 77.3 68.0 1981 1986,96 35 Units
190 1.03 3,500,000 3/31/98 91.2 0.0 1997 N/A 13,905 Sq Ft
191 1.40 4,300,000 1/14/98 74.2 65.4 1979 N/A 70,375 Sq Ft
192 1.28 4,000,000 10/3/97 79.6 70.8 1997 N/A 26,800 Sq Ft
193 1.32 4,230,000 3/20/98 74.9 65.1 In Phases 1973/1977 1993 45,599 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
194 1.39 x $ 4,100,000 3/25/98 76.7% 67.5% 1984 1989 29,584 Sq Ft
195 1.50 4,600,000 2/2/98 68.3 44.5 1986-1990 N/A 63,620 Sq Ft
196 1.72 5,700,000 4/20/98 54.4 46.4 1978 N/A 78 Units
197 1.86 5,000,000 5/1/98 62.0 51.9 1970 N/A 257 Pads
198 1.42 4,325,000 1/20/98 71.6 63.0 1996 N/A 52,200 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cut-off
Sq. Ft, Unit Replacement Annual
Control Bed, Pad Occupancy Occupancy Ownership Reserve TI/LC
No. or Room ($) Percentage (%) Date Interest Deposit Deposit
=======================================================================================================
<S> <C> <C> <C> <C> <C> <C>
132c 76.1 3/31/98 - -
133 32,538.62 100.0 1/28/98 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
134 20,083.91 94.4 6/16/98 Fee Simple 59,214 -
135 52.19 100.0 5/26/98 Fee Simple 12,278 33,561
136 20,859.33 100.0 3/9/98 Fee Simple 8,120 -
137 70,516.63 98.0 11/1/97 Fee Simple 48,871 -
138 67.45 83.0 5/1/98 Fee Simple 9,501 45,957
- -------------------------------------------------------------------------------------------------------
139 40,358.90 98.0 6/2/98 Fee Simple 31,403 -
140 40.64 89.0 4/1/98 Fee Simple 22,693 90,000
141 46.48 100.0 6/16/98 Fee Simple 13,425 15,376
142 17.93 95.7 6/10/98 Fee Simple 34,221 61,598
143 295.63 100.0 7/16/97 Fee Simple 2,196 -
- -------------------------------------------------------------------------------------------------------
144 94.30 100.0 4/7/98 Fee Simple - 12,820
145 61.89 99.3 4/2/98 Fee Simple 11,251 66,000
146 40,953.26 97.0 1/30/98 Fee Simple - -
147 24,691.36 40.0 4/1/98 Fee Simple - -
148 15,840.30 94.4 2/3/98 Fee Simple 77,364 -
- -------------------------------------------------------------------------------------------------------
149 64.23 100.0% 3/30/98 Fee Simple $ 15,300 $ 28,440
150 20.06 90.0 4/30/98 Fee Simple 49,410 61,050
151 122.20 100.0 5/31/98 Fee Simple 4,729 120,000
152 8,028.24 92.0 2/5/98 Fee Simple - -
153 36,829.40 93.4 2/1/98 Fee Simple 26,500 -
- -------------------------------------------------------------------------------------------------------
154 42.28 100.0 10/31/97 Fee Simple 7,360 225,000
155 16,831.41 97.4 4/25/98 Fee Simple 57,000 -
156 350.54 100.0 8/18/97 Fee Simple - -
157 30,549.70 92.0 3/3/98 Fee Simple 22,568 -
158 22.47 90.2 7/7/98 Fee Simple 25,500 76,500
- -------------------------------------------------------------------------------------------------------
159 61.49 86.0 3/19/98 Fee Simple 9,127 -
160 33,392.86 98.0 6/19/98 Fee Simple 28,560 -
161 132,019.77 85.0 6/9/98 Fee Simple 5,600 -
162 145.21 100.0 3/31/98 Fee Simple 6,227 29,270
163 26.93 100.0 3/19/98 Fee Simple 15,048 16,284
- -------------------------------------------------------------------------------------------------------
164 199.95 100.0 6/9/97 Fee Simple 2,760 -
165 81.56 100.0 3/30/98 Fee Simple - -
166 26,843.65 97.0 3/1/98 Fee Simple 33,504 -
167 60.38 97.0 3/23/98 Fee Simple & Leasehold 8,940 -
168 60.97 89.3 3/1/98 Fee Simple 8,396 34,728
- -------------------------------------------------------------------------------------------------------
169 46.53 98.7 3/1/98 Fee Simple 22,396 40,000
170 63.21 100.0 2/16/98 Fee Simple 5,901 30,000
171 255.13 100.0 12/5/95 Fee Simple 2,781 -
172 43.26 84.2 6/29/98 Fee Simple 97,128 131,900
173 25,179.86 98.0 6/19/98 Fee Simple 34,752 -
- -------------------------------------------------------------------------------------------------------
174 59.33 100.0 6/6/98 Fee Simple 8,827 108,457
175 25,701.23 100.0 4/1/98 Fee Simple 15,776 -
176 20,805.34 98.2 2/5/98 Fee Simple 42,000 -
177 51.37 100.0 2/17/98 Leasehold 12,000 -
178 37.87 91.5 4/10/98 Fee Simple 13,845 37,037
- -------------------------------------------------------------------------------------------------------
179 158.36 100.0 10/31/97 Fee Simple 17,680 -
180 33.71 96.2 6/1/98 Fee Simple 35,088 15,996
181 118.22 100.0 11/27/96 Fee Simple - -
182 22,077.92 96.0 6/1/98 Fee Simple 45,122 -
183 79.99 100.0 2/24/98 Fee Simple 4,208 10,098
- -------------------------------------------------------------------------------------------------------
184 33,449.14 97.0 1/20/98 Fee Simple 25,000 -
185 16,468.01 92.5 4/22/98 Fee Simple 42,033 -
186 53.93 100.0 5/20/98 Fee Simple 9,150 12,500
187 235.72 100.0 6/1/98 Fee Simple 2,086 -
188 43.38 87.0 1/23/98 Fee Simple 10,412 23,619
- -------------------------------------------------------------------------------------------------------
189 91,250.33 100.0 3/1/98 Fee Simple 9,636 -
190 229.67 100.0 4/3/98 Fee Simple 2,088 -
191 45.35 100.0 3/24/98 Fee Simple 10,560 29,520
192 118.87 91.3 3/1/98 Fee Simple 3,977 24,127
193 69.47 100.0 1/1/98 Fee Simple 7,836 -
- -------------------------------------------------------------------------------------------------------
194 106.33 100.0% 4/1/98 Fee Simple $ 7,237 $ 12,927
195 49.41 98.4 3/2/98 Fee Simple 12,724 37,968
196 39,743.59 97.0 5/12/98 Fee Simple 23,868 -
197 12,062.26 92.0 4/25/98 Fee Simple - -
198 59.31 100.0 11/24/95 Fee Simple 10,440 19,756
- -------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Largest Tenant
Control Tenant Area Lease Exp. Control
No. Largest Tenant Name Leased (Sq. Ft.) Date No.
=====================================================================================
<S> <C> <C> <C> <C>
132c 132c
133 133
- -------------------------------------------------------------------------------------
134 134
135 Hechinger Company 60,000 1/1/03 135
136 136
137 137
138 Community Connections, Inc. 18,128 1/3/07 138
- -------------------------------------------------------------------------------------
139 - 0 139
140 McDowell Agency, Inc. 10,726 1/15/01 140
141 Western Parcel Express, Inc. 89,499 8/31/05 141
142 Rural King 55,000 11/30/01 142
143 Walgreens 13,905 6/30/18 143
- -------------------------------------------------------------------------------------
144 Smart & Final Stores 17,998 6/21/16 144
145 Macess Corporation 30,130 3/31/00 145
146 146
147 147
148 148
- -------------------------------------------------------------------------------------
149 Suites at the Plaza 18,895 4/30/09 149
150 Preferred Freezer Services 197,640 4/30/13 150
151 Vroman's Bookstore 31,000 12/31/17 151
152 152
153 153
- -------------------------------------------------------------------------------------
154 HomeBase, Inc. 92,000 3/31/02 154
155 155
156 Eckerd Corporation 10,908 3/24/18 156
157 157
158 Precision Technology 29,870 7/31/00 158
- -------------------------------------------------------------------------------------
159 Rock Island 8,862 4/30/99 159
160 160
161 161
162 State of California 6,199 11/30/00 162
163 Hyvee 71,657 11/20/02 163
- -------------------------------------------------------------------------------------
164 Walgreens 18,308 5/31/18 164
165 Marquee Cinemas 12,596 4/30/02 165
166 166
167 167
168 True Value 9,000 12/31/03 168
- -------------------------------------------------------------------------------------
169 Eckerd Drugs 10,356 12/31/04 169
170 American Drug Stores, Inc. 31,768 9/30/04 170
171 Walgreen Co. 13,905 7/31/18 171
172 Basha's, Inc. 53,372 11/30/16 172
173 173
- -------------------------------------------------------------------------------------
174 Software Corp. of America 15,726 3/31/02 174
175 175
176 176
177 Metro Urol. Specialists 8,053 12/31/01 177
178 Hobby Lobby 39,280 9/12/12 178
- -------------------------------------------------------------------------------------
179 179
180 Krogers 56,160 8/31/99 180
181 Circuit City, Inc. 28,789 11/30/18 181
182 182
183 Ulvac Technologies 42,075 9/30/13 183
- -------------------------------------------------------------------------------------
184 184
185 185
186 Barakos 37,500 3/31/13 186
187 Walgreen's 13,905 6/30/57 187
188 Electric City 20,000 1/31/03 188
- -------------------------------------------------------------------------------------
189 189
190 Walgreen Store #3700 13,905 10/31/57 190
191 MacFrugal's 26,064 10/31/08 191
192 AAA Texas, Inc. 3,400 7/31/02 192
193 Body Focus 16,184 11/30/99 193
- -------------------------------------------------------------------------------------
194 Morrison & Duffy, PA Law Firm 6,247 12/30/98 194
195 Ding Ho Restaurant 6,600 7/1/10 195
196 196
197 197
198 Apria Healthcare, Inc. 52,200 6/30/06 198
- -------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ITALICS indicate mortgage loans secured by multiple properties.
<TABLE>
<CAPTION>
Control Loan
No. Seller Number Property Name
========================================================================================================
<S> <C> <C> <C>
199 Lehman Brothers 980120031 Hilltop Plaza
200 Lehman Brothers 971022043 101 Park Avenue
201 GMACCM GMAC2712 Skyline Manufactured Home Community
202 Lehman Brothers 970731032 Castle Apartments
203 Lehman Brothers 980407032 Sono Square
- --------------------------------------------------------------------------------------------------------
204 Lehman Brothers 8 Empire Inn - Best Western
205 Lehman Brothers 971209040 Montvale Place
206 Lehman Brothers 971121013 251-57 West 45th Street/254 West 46th Street
207 Lehman Brothers 55 Fixture World Facility
208 GMACCM GMAC3090 K Mart
- --------------------------------------------------------------------------------------------------------
209 GMACCM GMAC2340 Jeremy Apartments
210 GMACCM GMAC2320 119th Plaza Shopping Center
211 Lehman Brothers 971112029 Riverwood Village Shopping Center
212 Lehman Brothers 971016006 Valencia Autoplex
213 Lehman Brothers 10 Grand View Center
- --------------------------------------------------------------------------------------------------------
214 Lehman Brothers 980212108 747 Chestnut Ridge Road
215 Lehman Brothers 980408001 Perimeter Park
216 Lehman Brothers 13 Holiday Inn Sturbridge
217 GMACCM GMAC1480 University Village East
218 GMACCM GMAC1500 Cannon Park Warehouse
- --------------------------------------------------------------------------------------------------------
219 GMACCM GMAC2370 939-945 Fourth Avenue
220 Lehman Brothers 971112016 11312 Westheimer Shopping Center
221 Lehman Brothers 980601999E Circuit City (Property Level)
222 GMACCM GMAC1600 Greenfields Retirement Community
223 Lehman Brothers 970312026 3700 & 3800 Classen Office Buildings
- --------------------------------------------------------------------------------------------------------
224 GMACCM GMAC1510 Algonquin Apartments
225 Lehman Brothers 980303021 Westgate Service
226 GMACCM GMAC2420 First Southern Bank Building
227 Lehman Brothers 980416009 Comfort Inn - Warner Robins
228 Lehman Brothers 980317053 Greenbriar Apartments
- --------------------------------------------------------------------------------------------------------
229 GMACCM GMAC1530 Ridge Manor Apartments
230 GMACCM GMAC1520 Greenwood Gardens Office Building
231 Lehman Brothers 971223009 Lock-It-Up Self-Storage (Pacifica)
232 Lehman Brothers 970820055 Crestridge Corporate Center
233 Lehman Brothers 23 Shadow Hills MHP
- --------------------------------------------------------------------------------------------------------
234 GMACCM GMAC2460 Red Oaks Apartments
235 Lehman Brothers 971223010 Lock It Up (Pleasanton)
236 Lehman Brothers 980225090 89-55 Queens Blvd
237 GMACCM GMAC1540 Kentwood Apartments
238 GMACCM GMAC2706 Uniprop - Fairway Villas
- --------------------------------------------------------------------------------------------------------
239 Lehman Brothers 980415045 8000 Edgewater Drive
240 Lehman Brothers 971124011 1020 and 1030 South Arroyo Parkway
241 Lehman Brothers 971113012 Crichton Plaza
242 Lehman Brothers 980120028 Nottingham Village Center
243 Lehman Brothers 58 Shurgard - Hermitage
- --------------------------------------------------------------------------------------------------------
244 Lehman Brothers 980127001 Walgreens (Shawnee)
245 Lehman Brothers 971222008 Walgreen's (Westmoreland)
246 GMACCM GMAC1560 Ashburton Woods Apartments
247 GMACCM GMAC2704 Uniprop - Colonial Village
248 GMACCM GMAC1580 Pyramid Professional Center
- --------------------------------------------------------------------------------------------------------
249 GMACCM GMAC1570 Las Tunas Plaza Shopping Center
250 GMACCM GMAC2450 The Sawyer Building
251 Lehman Brothers 980112004 11123-11163 South Towne Square
252 Lehman Brothers 971029001 Eastlake Garden Apartments
253 GMACCM GMAC3020 Country Villa Westwood Nursing Center
- --------------------------------------------------------------------------------------------------------
254 Lehman Brothers 980407008 Cinderella Properties (Loan Level)
255 Lehman Brothers 980212001 Eckerd Pharmacy (Corpus Christi)
256 Lehman Brothers 980311013 Landmark Centre
257 Lehman Brothers 971030017 Eckerd - Baton Rouge
258 Lehman Brothers 970915001 280 Station Shopping Center
- --------------------------------------------------------------------------------------------------------
259 Lehman Brothers 980127012 Woodland Park Apartments
260 Lehman Brothers 970611002 Pinehurst Villas
261 Lehman Brothers 971217047 Park Avenue Apartments
262 GMACCM GMAC3230 Cypress Corners Office Building
263 Lehman Brothers 980324058 Days Inn Westminster
- --------------------------------------------------------------------------------------------------------
264 Lehman Brothers 971223007 Lock It Up (Fremont)
265 Lehman Brothers 980211017 Hidden Village Apartments
266 GMACCM GMAC2470 1900 Century Plaza Office Building
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Control
No. Property Type Address City
==================================================================================================================================
<S> <C> <C> <C>
199 Retail - Anchored 8060-8210 Hamilton Avenue Mount Healthy
200 Office 101 Park Avenue Oklahoma City
201 Multifamily - Mobile Home Park 2211 West Mulberry Street Fort Collins
202 Multifamily Various Tallahassee
203 Retail - Unanchored 22 Elizabeth Street Norwalk
- ----------------------------------------------------------------------------------------------------------------------------------
204 Hotel - Limited Service 475 W. Valley Blvd. Rialto
205 Retail - Unanchored 58-66 Montvale Avenue Stoneham
206 Other - Garage 251-57 West 45th Street/ 254 West 46th Street New York
207 Industrial 1151 Interstate Dr. Cookeville
208 Retail - Anchored 1311 Gause Boulevard Slidell
- ----------------------------------------------------------------------------------------------------------------------------------
209 Multifamily 1920 Sawtelle Blvd Los Angeles
210 Retail - Unanchored 11950 South Strang Line Road Olathe
211 Retail - Anchored SWC US Highway 49 & Scarbrough Street Richland
212 Retail - Unanchored 23500-23520 Valencia Boulevard Valencia
213 Retail - Anchored 1001-1185 Mutual Way Grand Chute
- ----------------------------------------------------------------------------------------------------------------------------------
214 Office 747 Chestnut Ridge Road Chestnut Ridge
215 Office 2500 Mount Moriah Memphis
216 Hotel - Limited Service 478 Main Street (Route 20) Sturbridge
217 Retail - Unanchored 2900 Clear Acre Lane Reno
218 Industrial 10678-10699 Wakeman Court Manassas
- ----------------------------------------------------------------------------------------------------------------------------------
219 Office 939-945 Fourth Avenue San Diego
220 Retail - Unanchored 11312 Westheimer Houston
221 CTL - Distribution 1020 Research Parkway Meriden
222 Healthcare - Assisted Living 723 East Second Avenue Mesa
223 Office 3700 & 3800 Classen Boulevard Oklahoma City
- ----------------------------------------------------------------------------------------------------------------------------------
224 Multifamily 7810-7820 Algon Avenue Philadelphia
225 Industrial 19424, 19416 & 19408 Park Row Drive Houston
226 Office 1750 N. University Drive Coral Springs
227 Hotel - Limited Service 95 South State Route 247 Warner Robins
228 Multifamily 605-625 Gregory Drive Corpus Christi
- ----------------------------------------------------------------------------------------------------------------------------------
229 Multifamily 3131-3229 Bee Ridge Road Sarasota
230 Office 10550 S.W. Allen Boulevard Beaverton
231 Self Storage 1303 Palmetto Avenue Pacifica
232 Office 10151-55 York Road Cockeysville
233 Multifamily - Mobile Home Park 1802 East Campo Bello Phoenix
- ----------------------------------------------------------------------------------------------------------------------------------
234 Multifamily 4747 Jurupa Avenue Riverside
235 Self Storage 7315 Johnson Drive Pleasanton
236 Retail - Anchored 89-55/90-05 Queens Boulevard Elmhurst
237 Multifamily 730-750 Sanford, 735-755 Kentwood & 10150
Bridle Philadelphia
238 Multifamily - Mobile Home Park 4725 Cobb Parkway Acworth
- ----------------------------------------------------------------------------------------------------------------------------------
239 Office 8000 Edgewater Drive Oakland
240 Office 1020 & 1030 South Arroyo Parkway Pasadena
241 Retail - Unanchored NWC Springhill Avenue and Union Avenue Mobile
242 Retail - Unanchored Fry Road Katy
243 Self Storage 3986 Central Pike Nashville
- ----------------------------------------------------------------------------------------------------------------------------------
244 CTL - Retail 1427 North Harrison Avenue Shawnee
245 CTL - Retail 1104 South Westmoreland Road Dallas
246 Multifamily 3300-3318 Dolfield Avenue Baltimore
247 Multifamily - Mobile Home Park 2105 Harrell Road Orlando
248 Office 2261, 2281, 2321 & 2351 Pyramid Way Sparks
- ----------------------------------------------------------------------------------------------------------------------------------
249 Retail - Unanchored 805-841 W. Las Tunas Drive San Gabriel
250 Office 400 Front Street Key West
251 Industrial 11123-11163 South Towne Square Green Park
252 Multifamily 3220 Eastlake Avenue East Seattle
253 Healthcare - Nursing Home, Skilled Care 12121 Santa Monica Blvd Los Angeles
- ----------------------------------------------------------------------------------------------------------------------------------
254 Industrial Various Boca Raton
255 CTL - Retail 4801 Alameda Street Corpus Christi
256 Retail - Unanchored 2348-2360 North Military Trail West Palm Beach
257 CTL - Retail 5889 Airline Highway Baton Rouge
258 Retail - Unanchored 400 Cahaba Park Circle Birmingham
- ----------------------------------------------------------------------------------------------------------------------------------
259 Multifamily 7250 Campbellton Road Atlanta
260 Multifamily 1500 Pinehurst Drive Opelika
261 Multifamily 6701 Bryan Dairy Road Pinellas Park
262 Office 2900 West Cypress Road Fort Lauderdale
263 Hotel - Limited Service 25 South Cranberry Road Westminster
- ----------------------------------------------------------------------------------------------------------------------------------
264 Self Storage 38491 Fremont Boulevard Fremont
265 Multifamily 807 Flame Circle San Antonio
266 Office 1900 Century Place Atlanta
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial Mortgage
No. State Code Groups Balance ($) Balance ($) Balance Pool Balance Rate (%)
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
199 OH 45231 No 3,100,000 3,093,859 0.12 84.08 7.1900
200 OK 73102 No 3,100,000 3,083,534 0.12 84.20 7.3300
201 CO 80521 No 3,000,000 3,000,000 0.12 84.32 6.3500
202 FL 32304 No 3,000,000 3,000,000 0.12 84.43 7.0000
203 CT 06854 No 3,000,000 2,996,069 0.12 84.55 7.4100
- -----------------------------------------------------------------------------------------------------------------------
204 CA 92376 No 3,000,000 2,995,038 0.12 84.67 8.6600
205 MA 02180 No 3,000,000 2,994,292 0.12 84.78 7.3400
206 NY 10036 No 3,000,000 2,990,836 0.12 84.90 7.3700
207 TN 38501 No 2,950,000 2,945,863 0.11 85.02 8.3100
208 LA 70458 No 3,200,000 2,930,302 0.11 85.13 9.7500
- -----------------------------------------------------------------------------------------------------------------------
209 CA 90025 No 2,900,000 2,900,000 0.11 85.24 6.9500
210 KS 66062 No 2,900,000 2,900,000 0.11 85.36 7.2000
211 MS 39218 No 2,900,000 2,894,377 0.11 85.47 7.2700
212 CA 91355 No 2,900,000 2,894,070 0.11 85.58 7.0700
213 WI 54915 No 2,880,000 2,874,069 0.11 85.69 7.5500
- -----------------------------------------------------------------------------------------------------------------------
214 NY 10977 No 2,850,000 2,846,322 0.11 85.80 7.4700
215 TN 38115 No 2,850,000 2,846,046 0.11 85.92 7.1800
216 MA 01566 No 2,845,000 2,840,127 0.11 86.03 7.9200
217 NV 89512 No 2,800,000 2,800,000 0.11 86.14 7.3750
218 VA 22111 No 2,800,000 2,798,234 0.11 86.24 7.3750
- -----------------------------------------------------------------------------------------------------------------------
219 CA 92101 No 2,800,000 2,798,127 0.11 86.35 7.1500
220 TX 77077 No 2,800,000 2,786,099 0.11 86.46 7.4200
221 CT 06450 No 2,865,873 2,780,187 0.11 86.57 7.9600
222 AZ 85204 No 2,750,000 2,747,178 0.11 86.68 7.3900
223 OK 73118 No 2,750,000 2,742,546 0.11 86.79 7.3000
- -----------------------------------------------------------------------------------------------------------------------
224 PA 19111 No 2,750,000 2,741,299 0.11 86.89 7.0500
225 TX 77084 No 2,700,000 2,698,525 0.11 87.00 7.4300
226 FL 33063 No 2,700,000 2,698,241 0.11 87.10 7.2500
227 GA 31088 No 2,700,000 2,697,456 0.11 87.21 7.4500
228 TX 78412 No 2,700,000 2,696,715 0.11 87.31 7.7000
- -----------------------------------------------------------------------------------------------------------------------
229 FL 34239 No 2,700,000 2,694,205 0.11 87.42 7.3000
230 OR 97005 Yes(G INN LLC) 2,700,000 2,692,179 0.11 87.52 7.6700
231 CA 94044 No 2,700,000 2,691,592 0.10 87.63 7.3500
232 MD 21030 No 2,700,000 2,689,832 0.10 87.73 7.3800
233 AZ 85022 No 2,680,000 2,676,245 0.10 87.84 7.1400
- -----------------------------------------------------------------------------------------------------------------------
234 CA 92506 No 2,675,000 2,673,093 0.10 87.94 6.9000
235 CA 94588 No 2,650,000 2,645,173 0.10 88.04 7.4300
236 NY 11373 No 2,650,000 2,644,301 0.10 88.15 7.3200
237 PA 19116 No 2,650,000 2,641,683 0.10 88.25 7.0900
238 GA 30101 No 2,600,000 2,600,000 0.10 88.35 6.4500
- -----------------------------------------------------------------------------------------------------------------------
239 CA 94621 No $ 2,600,000 $ 2,598,486 0.10% 88.45% 7.2300%
240 CA 91105 No 2,600,000 2,597,325 0.10 88.55 7.0500
241 AL 10020 No 2,600,000 2,596,490 0.10 88.66 7.2900
242 TX 77450 No 2,600,000 2,594,904 0.10 88.76 7.2300
243 TN 37076 No 2,600,000 2,594,335 0.10 88.86 7.2500
- -----------------------------------------------------------------------------------------------------------------------
244 OK 74801 No 2,593,096 2,582,153 0.10 88.96 7.3800
245 TX 75211 No 2,561,600 2,553,512 0.10 89.06 7.1900
246 MD 21215 No 2,550,000 2,545,986 0.10 89.16 7.2200
247 FL 32817 No 2,500,000 2,500,000 0.10 89.26 6.3500
248 NV 89431 No 2,500,000 2,500,000 0.10 89.35 7.0100
- -----------------------------------------------------------------------------------------------------------------------
249 CA 91776 No 2,500,000 2,497,093 0.10 89.45 7.3750
250 FL 33040 No 2,500,000 2,495,811 0.10 89.55 7.4600
251 MO 63123 No 2,500,000 2,494,901 0.10 89.65 7.0800
252 WA 98012 No 2,500,000 2,494,685 0.10 89.74 6.9200
253 CA 90025 No 2,500,000 2,494,578 0.10 89.84 7.8300
- -----------------------------------------------------------------------------------------------------------------------
254 FL Various No 2,500,000 2,484,451 0.10 89.94 7.2000
255 TX 78412 No 2,484,000 2,475,431 0.10 90.03 7.2600
256 FL 33409 No 2,475,000 2,472,878 0.10 90.13 7.8600
257 LA 70805 No 2,471,476 2,467,643 0.10 90.23 7.4300
258 AL 35242 No 2,450,000 2,448,600 0.10 90.32 7.2900
- -----------------------------------------------------------------------------------------------------------------------
259 GA 30331 No 2,440,000 2,434,958 0.09 90.42 7.0300
260 AL 36801 No 2,425,000 2,421,758 0.09 90.51 7.3300
261 FL 34624 No 2,400,000 2,398,527 0.09 90.60 7.0600
262 FL 33309 No 2,400,000 2,398,436 0.09 90.70 7.2500
263 MD 21257 No 2,400,000 2,395,197 0.09 90.79 7.7000
- -----------------------------------------------------------------------------------------------------------------------
264 CA 94536 No 2,400,000 2,392,527 0.09 90.88 7.3500
265 TX 78221 No 2,400,000 2,392,512 0.09 90.98 7.3400
266 GA 30345 No 2,380,000 2,378,489 0.09 91.07 7.3500
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Master Interest Original Remaining Term to Term to Original
Control Servicing Servicing Accrual Amortization Interest-Only Interest-Only Maturity Maturity Amortization
No. Fee Fee Method Type Period (Mos.) Period (Mos.) (Mos.) (Mos.) Term (Mos.)
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
199 Act/360 Balloon 0 0 120 117 360
200 Act/360 Balloon 0 0 120 115 300
201 Act/360 Balloon 0 0 126 126 360
202 30/360 Fully Amortizing 0 0 240 240 240
203 Act/360 Balloon 0 0 120 118 360
- ---------------------------------------------------------------------------------------------------------------------------------
204 Act/360 Balloon 0 0 119 117 300
205 Act/360 Balloon 0 0 120 117 360
206 30/360 Fully Amortizing 0 0 180 179 180
207 Act/360 Balloon 0 0 120 119 240
208 30/360 Fully Amortizing 0 0 239 189 239
- ---------------------------------------------------------------------------------------------------------------------------------
209 Act/360 Balloon 0 0 120 120 360
210 Act/360 Balloon 0 0 120 120 300
211 Act/360 Balloon 0 0 120 117 360
212 Act/360 Balloon 0 0 84 81 360
213 Act/360 Balloon 0 0 120 118 300
- ---------------------------------------------------------------------------------------------------------------------------------
214 Act/360 Balloon 0 0 120 118 360
215 Act/360 Balloon 0 0 120 118 360
216 Act/360 Balloon 0 0 120 118 300
217 30/360 Balloon 0 0 120 120 360
218 Act/360 Balloon 0 0 84 83 360
- ---------------------------------------------------------------------------------------------------------------------------------
219 Act/360 Balloon 0 0 120 119 360
220 Act/360 Balloon 0 0 120 113 360
221 30/360 Fully Amortizing 0 0 264 244 264
222 Act/360 Balloon 0 0 120 119 300
223 Act/360 Balloon 0 0 120 116 360
- ---------------------------------------------------------------------------------------------------------------------------------
224 Act/360 Balloon 0 0 120 116 360
225 Act/360 Balloon 0 0 84 83 360
226 Act/360 Balloon 0 0 120 119 360
227 Act/360 Balloon 0 0 120 119 300
228 Act/360 Balloon 0 0 210 208 360
- ---------------------------------------------------------------------------------------------------------------------------------
229 Act/360 Balloon 0 0 120 117 360
230 30/360 Balloon 0 0 180 176 360
231 Act/360 Balloon 0 0 180 177 300
232 30/360 Fully Amortizing 0 0 237 235 237
233 Act/360 Balloon 0 0 120 118 360
- ---------------------------------------------------------------------------------------------------------------------------------
234 Act/360 Balloon 0 0 120 119 360
235 30/360 Fully Amortizing 0 0 240 239 240
236 Act/360 Balloon 0 0 120 118 300
237 Act/360 Balloon 0 0 120 116 360
238 Act/360 Hyperamortizing 0 0 126 126 360
- ---------------------------------------------------------------------------------------------------------------------------------
239 Act/360 Balloon 0 0 60 59 360
240 Act/360 Balloon 0 0 120 119 300
241 Act/360 Balloon 0 0 120 118 360
242 Act/360 Balloon 0 0 120 117 360
243 Act/360 Balloon 0 0 120 118 300
- ---------------------------------------------------------------------------------------------------------------------------------
244 30/360 Balloon 0 0 237 234 275
245 30/360 Balloon 0 0 221 219 263
246 30/360 Balloon 0 0 120 118 360
247 Act/360 Hyperamortizing 0 0 126 126 360
248 Act/360 Balloon 0 0 120 120 360
- ---------------------------------------------------------------------------------------------------------------------------------
249 30/360 Balloon 0 0 120 119 300
250 Act/360 Fully Amortizing 0 0 240 239 240
251 Act/360 Balloon 0 0 120 117 360
252 Act/360 Balloon 0 0 120 117 360
253 30/360 Balloon 0 0 120 118 300
- ---------------------------------------------------------------------------------------------------------------------------------
254 30/360 Fully Amortizing 0 0 180 178 180
255 30/360 Step 0 0 236 234 236
256 Act/360 Balloon 0 0 120 119 300
257 30/360 Step 0 0 238 236 293
258 Act/360 Hyperamortizing 0 0 120 119 360
- ---------------------------------------------------------------------------------------------------------------------------------
259 Act/360 Balloon 0 0 120 117 360
260 Act/360 Balloon 0 0 180 178 360
261 Act/360 Balloon 0 0 120 119 360
262 Act/360 Balloon 0 0 120 119 360
263 Act/360 Balloon 0 0 120 118 300
- ---------------------------------------------------------------------------------------------------------------------------------
264 Act/360 Balloon 0 0 180 177 300
265 Act/360 Balloon 0 0 180 177 300
266 Act/360 Balloon 0 0 120 119 360
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Remaining Underwritten
Control Amortization Origination Maturity Balloon Annual Net
No. Term (Mos.) Date or ARD Balance ($) Prepayment Provisions Debt Service ($) Cash Flow ($)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
199 357 4/15/98 5/1/08 2,718,038 L(4),D(5.75),O(.25) 252,257 337,547
200 295 2/23/98 3/1/08 2,506,174 L(4),D(5.5),O(.5) 270,804 359,803
201 360 7/13/98 2/10/09 2,508,736 L(2),D(7.75),O(.75) 226,196 450,688
202 240 7/6/98 8/1/18 - L(6),D(13),O(1) 279,108 379,369
203 358 5/18/98 6/1/08 2,644,886 L(4),D(5.75),O(.25) 249,502 355,659
- -----------------------------------------------------------------------------------------------------------------------------------
204 298 5/28/98 5/11/08 2,523,704 L(2.25),D(7.42),O(.25) 293,774 437,244
205 357 4/23/98 5/1/08 2,640,579 L(4),YM1%(5.75),O(.25) 247,785 369,721
206 179 6/3/98 7/1/13 - YM1%(14.75),O(.25) 331,071 455,448
207 239 6/9/98 7/1/08 2,103,907 L(2.17),D(7.58),O(.25) 302,966 388,362
208 189 6/2/94 5/1/14 - L(5),YM1%(14.667),O(.25) 364,727 424,243
- -----------------------------------------------------------------------------------------------------------------------------------
209 360 7/7/98 8/1/08 2,491,785 L(2),D(7.5),O(.5) 232,737 280,215
210 300 7/15/98 8/1/08 2,299,895 L(2),D(7.5),O(.5) 252,783 366,741
211 357 4/17/98 5/1/08 2,547,964 L(4),D(5.75),O(.25) 237,870 332,780
212 357 4/29/98 5/1/05 2,672,748 L(4),D(2.5),O(.5) 233,164 319,967
213 298 5/21/98 6/11/08 2,343,306 L(2.16),D(7.59),O(.25) 256,520 328,740
- -----------------------------------------------------------------------------------------------------------------------------------
214 358 5/7/98 6/1/08 2,516,464 L(4),D(5.75),O(.25) 238,429 331,449
215 358 6/1/98 6/1/08 2,497,813 L(4),D(5.75),O(.25) 231,683 309,198
216 298 5/19/98 6/1/08 2,340,197 L(2.25),D(7.5),O(.25) 261,691 379,452
217 360 7/1/98 8/1/08 2,423,522 L(2),D(7.5),O(.5) 232,067 311,696
218 359 6/29/98 7/1/05 2,570,833 L(2.083),D(4.417),O(.5) 234,572 309,242
- -----------------------------------------------------------------------------------------------------------------------------------
219 359 6/16/98 7/1/08 2,417,151 L(2.083),D(7.417),O(.5) 229,344 292,895
220 353 12/23/97 1/1/08 2,467,827 L(4),YM1%(5.5),O(.5) 233,098 300,787
221 244 11/27/96 12/1/18 - L(1),YM(21) 276,370 276,370
222 299 6/10/98 7/1/08 2,192,310 L(1),YM1%(9) 243,858 384,000
223 356 3/24/98 4/1/08 2,417,744 L(4),YM1%(5.75),O(.25) or DEF 226,238 287,277
- -----------------------------------------------------------------------------------------------------------------------------------
224 356 3/20/98 4/1/08 2,368,469 L(2.333),D(7.167),O(.5) 222,967 305,124
225 359 6/11/98 7/1/05 2,503,415 L(2.5),D(4.25),O(.25) 224,994 303,085
226 359 6/25/98 7/10/08 2,336,178 L(2.083),D(7.417),O(.5) 223,389 288,474
227 299 6/26/98 7/1/08 2,190,592 L(4),D(5.75),O(.25) 238,380 434,378
228 358 5/15/98 12/1/15 1,954,005 L(8),D(9.25),O(.25) 230,999 320,995
- -----------------------------------------------------------------------------------------------------------------------------------
229 357 4/30/98 5/1/08 2,338,831 L(2.25),D(7.25),O(.5) 224,515 282,114
230 356 3/11/98 4/1/13 2,049,120 YM1%(14.5),O(.5) 230,329 301,264
231 297 4/30/98 5/1/13 1,740,896 L(7),D(7.75),O(.25) 236,281 381,411
232 235 5/27/98 3/1/18 - L(12),D(7.5),O(.25) 260,079 331,435
233 358 5/11/98 6/1/08 2,346,371 L(5),YM1%(4.67),O(.33) 216,994 278,658
- -----------------------------------------------------------------------------------------------------------------------------------
234 359 6/29/98 7/10/08 2,295,722 L(2.083),D(7.417),O(.5) 213,608 345,900
235 239 6/2/98 7/1/18 - L(10),D(9.75),O(.25) 254,819 359,322
236 298 5/19/98 6/1/08 2,141,261 L(4),D(5.5),O(.5) 231,289 362,034
237 356 3/25/98 4/1/08 2,284,475 L(2.333),D(7.167),O(.5) 215,732 282,292
238 360 7/13/98 2/10/09 2,180,123 L(2),D(7.75),O(.75) 198,118 337,998
- -----------------------------------------------------------------------------------------------------------------------------------
239 359 6/9/98 7/1/03 $ 2,469,507 L(3),D(1.75),O(.25) $ 212,416 $ 305,611
240 299 6/16/98 7/1/08 2,083,760 L(4),YM1%(5.75),O(.25) 221,511 378,509
241 358 5/27/98 6/1/08 2,285,207 L(4),D(5.75),O(.25) 213,686 276,757
242 357 4/7/98 5/1/08 2,282,016 L(4),YM1%(5.75),O(.25) 212,416 310,775
243 298 5/29/98 6/1/08 2,096,375 L(5),YM1%(4.75),O(.25) 225,516 390,836
- -----------------------------------------------------------------------------------------------------------------------------------
244 272 4/30/98 2/1/18 661,762 L(10),D(9.75) 234,875 241,921
245 261 5/13/98 11/1/16 714,849 L(8),D(10.41) 232,565 237,914
246 358 5/29/98 6/1/08 2,199,408 L(2.167),D(7.333),O(.5) 208,124 260,146
247 360 7/13/98 2/10/09 2,090,614 L(2),D(7.75),O(.75) 188,497 286,014
248 360 6/25/98 8/1/08 2,150,821 L(2),D(7.5),O(.5) 201,888 300,688
- -----------------------------------------------------------------------------------------------------------------------------------
249 299 6/22/98 7/1/08 1,986,252 L(2.083),D(7.417),O(.5) 219,264 311,223
250 239 6/23/98 7/1/18 - L(2.083),D(17.417),O(.5) 242,981 419,245
251 357 4/21/98 5/1/08 2,185,655 L(4),YM1%(5.75),O(.25) 201,205 290,086
252 357 4/8/98 5/1/08 2,176,379 L(4),D(5.75),O(.25) 197,982 258,512
253 298 6/1/98 6/1/08 2,010,300 L(2.167),D(7.333),O(.5) 228,177 368,106
- -----------------------------------------------------------------------------------------------------------------------------------
254 178 5/19/98 6/1/13 - L(7),D(7.75),O(.25) 273,014 565,655
255 234 5/1/98 2/1/18 - L(8),D(11.67) 231,595 232,290
256 299 6/4/98 7/1/08 2,032,630 L(4),D(5.75),O(.25) 226,482 299,032
257 291 5/26/98 4/1/18 927,000 L(8),D(11.83) 206,561 207,180
258 359 6/2/98 7/1/08 2,153,635 L(4),D(5.5),O(.5) 201,358 282,791
- -----------------------------------------------------------------------------------------------------------------------------------
259 357 4/3/98 5/1/08 2,130,383 L(4),D(5.75),O(.25) 195,391 287,520
260 358 5/29/98 6/1/13 1,883,531 L(7),D(7.75),O(.25) 200,095 243,960
261 359 6/4/98 7/1/08 2,097,060 L(5),D(4.75),O(.25) 192,769 291,040
262 359 6/29/98 7/10/08 2,076,604 L(2.083),D(7.417),O(.5) 198,568 299,612
263 298 5/29/98 6/1/08 1,961,478 L(4),D(5.75),O(.25) 216,590 340,306
- -----------------------------------------------------------------------------------------------------------------------------------
264 297 4/6/98 5/1/13 1,547,461 L(7),D(7.75),O(.25) 210,027 351,801
265 297 4/30/98 5/1/13 1,546,644 L(4),D(10.75),O(.25) 209,841 270,928
266 359 6/5/98 7/1/08 2,063,966 L(2.083),D(7.417),O(.5) 198,891 324,152
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten Cut-off Scheduled Sq. Ft, Units
Control NCF Appraised Appraisal Date Maturity or ARD Year Year Beds, Pads
No. DSCR (x) Value ($) Date LTV (%) Date LTV(%) Built Renovated or Rooms
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
199 1.34 4,150,000 2/12/98 74.6 65.5 1973 1992 111,493 Sq Ft
200 1.33 4,300,000 11/21/97 71.7 58.3 1936/74 1990s 189,090 Sq Ft
201 1.99 4,800,000 5/1/98 62.5 52.3 1968, 1972 AND 1983 N/A 173 Pads
202 1.36 4,200,000 10/30/97 71.4 0.0 Various Various 120 Units
203 1.43 4,000,000 1/12/98 74.9 66.1 1930s 1995-1997 96,798 Sq Ft
- -----------------------------------------------------------------------------------------------------------------------------------
204 1.49 4,000,000 3/4/98 74.9 63.1 1992 100 Rooms
205 1.49 4,200,000 2/4/98 71.3 62.9 1940-1970 1984 55,830 Sq Ft
206 1.38 5,600,000 4/1/98 53.4 0.0 1958 N/A 346 Spaces
207 1.28 4,100,000 4/14/98 71.9 51.3 1979 1989 116,016 Sq Ft
208 1.16 4,500,000 6/12/98 65.1 0.0 1978 1989 87,407 Sq Ft
- -----------------------------------------------------------------------------------------------------------------------------------
209 1.20 3,900,000 4/20/98 74.4 63.9 1990 N/A 41 Units
210 1.45 4,000,000 5/1/98 72.5 57.5 1994 N/A 47,623 Sq Ft
211 1.40 3,800,000 1/13/98 76.2 67.1 1984 N/A 67,190 Sq Ft
212 1.37 3,700,000 11/24/97 78.2 72.2 1995 N/A 20,458 Sq Ft
213 1.28 3,800,000 3/17/98 75.6 61.7 1992 53,190 Sq Ft
- -----------------------------------------------------------------------------------------------------------------------------------
214 1.39 3,650,000 4/13/98 78.0 68.9 1989 N/A 32,839 Sq Ft
215 1.33 5,100,000 4/14/98 55.8 49.0 1975 N/A 113,629 Sq Ft
216 1.45 4,000,000 4/21/98 71.0 58.5 1988 64 Rooms
217 1.34 3,745,000 4/13/98 74.8 64.7 1986/1987 1997 39,256 Sq Ft
218 1.35 4,400,000 3/27/98 62.5 57.4 1988 N/A 98,186 Sq Ft
- -----------------------------------------------------------------------------------------------------------------------------------
219 1.28 3,735,000 5/13/98 74.9 64.7 1989 N/A 22,388 Sq Ft
220 1.29 3,710,000 10/13/97 75.1 66.5 1978 1995-96 29,970 Sq Ft
221 1.00 3,000,000 6/8/98 92.7 0.0 1996 N/A 43,200 Sq Ft
222 1.57 4,000,000 1/1/98 68.7 54.8 1962 1993-1994 112 Units
223 1.27 3,700,000 3/15/98 74.1 65.3 1982 1995 90,307 Sq Ft
- -----------------------------------------------------------------------------------------------------------------------------------
224 1.37 3,500,000 2/3/98 78.3 67.7 1970 1995 120 Units
225 1.35 3,750,000 4/23/98 72.0 66.8 1985 N/A 118,900 Sq Ft
226 1.29 3,330,000 5/13/98 81.0 70.2 1985 N/A 39,526 Sq Ft
227 1.82 3,700,000 5/1/98 72.9 59.2 1990 1997 77 Rooms
228 1.39 3,400,000 3/11/98 79.3 57.5 1964-65 N/A 85 Units
- -----------------------------------------------------------------------------------------------------------------------------------
229 1.26 3,600,000 3/4/98 74.8 65.0 1968 1997 100 Units
230 1.31 4,600,000 12/5/97 58.5 44.6 1976 N/A 54,463 Sq Ft
231 1.61 4,140,000 1/9/98 65.0 42.1 1976 N/A 43,375 Sq Ft
232 1.27 4,400,000 3/6/98 61.1 0.0 1988/89 N/A 52,675 Sq Ft
233 1.28 3,580,000 3/23/98 74.8 65.5 1983,97 122 Pads
- -----------------------------------------------------------------------------------------------------------------------------------
234 1.62 3,500,000 5/12/98 76.4 65.6 1972 1997 112 Units
235 1.41 4,125,000 1/9/98 64.1 0.0 1987 N/A 59,616 Sq Ft
236 1.57 4,200,000 2/26/98 63.0 51.0 1995 N/A 8,466 Sq Ft
237 1.31 3,300,000 2/3/98 80.1 69.2 1970 N/A 119 Units
238 1.71 3,600,000 5/1/98 72.2 60.6 1974 N/A 225 Pads
- -----------------------------------------------------------------------------------------------------------------------------------
239 1.44 x $ 4,050,000 4/15/98 64.2% 61.0% 1971 N/A 50,231 Sq Ft
240 1.71 3,900,000 12/4/97 66.6 53.4 1955 1997 30,717 Sq Ft
241 1.30 3,500,000 1/28/98 74.2 65.3 1956 N/A 109,642 Sq Ft
242 1.46 3,900,000 2/16/98 66.5 58.5 1985 N/A 34,988 Sq Ft
243 1.73 3,700,000 3/9/98 70.1 56.7 1995 65,140 Sq Ft
- -----------------------------------------------------------------------------------------------------------------------------------
244 1.03 2,890,000 3/4/98 89.4 22.9 1998 N/A 13,905 Sq Ft
245 1.02 2,750,000 4/1/98 92.9 26.0 1996 N/A 13,905 Sq Ft
246 1.25 3,200,000 1/30/98 79.6 68.7 1940 1985 149 Units
247 1.52 3,600,000 5/1/98 69.4 58.1 1971 N/A 187 Pads
248 1.49 3,600,000 4/10/98 69.4 59.8 1980 and 1991 N/A 30,500 Sq Ft
- -----------------------------------------------------------------------------------------------------------------------------------
249 1.42 3,350,000 3/10/98 74.5 59.3 1981 N/A 18,090 Sq Ft
250 1.73 3,800,000 9/22/97 65.7 0.0 1868 and 1976 1997 11,638 Sq Ft
251 1.44 3,500,000 12/18/97 71.3 62.5 1983/1986 N/A 72,130 Sq Ft
252 1.31 3,400,000 10/8/97 73.4 64.0 1997 N/A 42 Units
253 1.61 3,560,000 2/23/98 70.1 56.5 1966 N/A 93 Beds
- -----------------------------------------------------------------------------------------------------------------------------------
254 2.07 7,300,000 4/21/98 34.0 0.0 1982 1994-1997 148,243 Sq Ft
255 1.00 2,750,000 4/10/98 90.0 0.0 1998 N/A 11,000 Sq Ft
256 1.32 3,300,000 4/7/98 74.9 61.6 1989 N/A 42,963 Sq Ft
257 1.00 2,500,000 4/20/98 98.7 37.1 1997 N/A 10,908 Sq Ft
258 1.40 3,300,000 12/8/97 74.2 65.3 1990 N/A 25,441 Sq Ft
- -----------------------------------------------------------------------------------------------------------------------------------
259 1.47 3,050,000 2/2/98 79.8 69.9 1988 N/A 116 Units
260 1.22 3,135,000 4/24/98 77.3 60.1 1996 N/A 104 Units
261 1.51 3,200,000 2/5/98 75.0 65.5 1985 N/A 96 Units
262 1.51 3,250,000 6/2/98 73.8 63.9 1984 N/A 42,979 Sq Ft
263 1.57 3,300,000 4/9/98 72.6 59.4 1987 1997 96 Rooms
- -----------------------------------------------------------------------------------------------------------------------------------
264 1.68 4,000,000 1/6/98 59.8 38.7 1984 N/A 54,700 Sq Ft
265 1.29 3,560,000 2/4/98 67.2 43.5 1971 N/A 176 Units
266 1.78 3,425,000 4/16/98 63.5 55.2 1982 N/A 42,965 Sq Ft
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cut-off
Sq. Ft, Unit Replacement Annual
Control Bed, Pad Occupancy Occupancy Ownership Reserve TI/LC
No. or Room ($) Percentage (%) Date Interest Deposit Deposit
=======================================================================================================
<S> <C> <C> <C> <C> <C> <C>
199 27.75 100.0 1/31/98 Fee Simple 60,661 18,513
200 16.31 87.1 1/31/98 Fee Simple 28,364 96,996
201 17,341.04 100.0 4/25/98 Fee Simple - -
202 25,000.00 94.1 5/28/98 Fee Simple 40,569 -
203 30.95 96.4 6/18/98 Fee Simple 28,028 60,000
- -------------------------------------------------------------------------------------------------------
204 29,950.38 57.0 3/4/98 Fee Simple 1,718 -
205 53.63 97.8 5/30/98 Fee Simple 8,338 30,290
206 8,644.03 100.0 11/15/96 Fee Simple - -
207 25.39 100.0 6/10/98 Fee Simple - -
208 33.52 100.0 12/6/97 Fee Simple & Leasehold 12,000 -
- -------------------------------------------------------------------------------------------------------
209 70,731.71 98.0 6/8/98 Fee Simple 9,804 -
210 60.89 100.0 4/1/98 Fee Simple 4,764 -
211 43.08 98.5 4/1/98 Fee Simple 11,000 24,000
212 141.46 100.0 3/16/98 Fee Simple 3,069 11,266
213 54.03 100.0 5/1/98 Fee Simple 4,517 -
- -------------------------------------------------------------------------------------------------------
214 86.68 99.5 3/27/98 Fee Simple 4,926 30,000
215 25.05 91.6 5/14/98 Fee Simple 19,999 60,000
216 44,376.99 62.1 0 Fee Simple - -
217 71.33 93.0 5/1/98 Fee Simple & Leasehold 13,740 28,021
218 28.50 100.0 6/1/98 Fee Simple 16,692 -
- -------------------------------------------------------------------------------------------------------
219 124.98 100.0 5/13/98 Fee Simple - -
220 92.96 100.0 11/5/97 Fee Simple 4,491 17,735
221 64.36 100.0 11/27/96 Fee Simple - -
222 24,528.38 94.0 1/1/98 Fee Simple - -
223 30.37 92.6 3/1/98 Fee Simple 27,080 -
- -------------------------------------------------------------------------------------------------------
224 22,844.15 100.0 3/16/98 Fee Simple 30,000 -
225 22.70 97.1 7/13/98 Fee Simple 11,890 50,683
226 68.26 90.0 5/21/98 Fee Simple 6,719 24,504
227 35,031.90 70.0 3/31/98 Fee Simple 46,937 -
228 31,726.06 95.3 4/20/98 Fee Simple 22,602 -
- -------------------------------------------------------------------------------------------------------
229 26,942.05 96.0 4/15/98 Fee Simple 25,000 -
230 49.43 99.0 4/21/98 Fee Simple 26,208 50,484
231 62.05 99.7 1/31/98 Fee Simple 7,727 -
232 51.06 92.9 2/17/98 Fee Simple 8,958 75,619
233 21,936.43 93.4 1/31/98 Fee Simple 5,544 -
- -------------------------------------------------------------------------------------------------------
234 23,866.90 97.0 4/30/98 Fee Simple 28,000 -
235 44.37 91.1 1/31/98 Fee Simple 8,234 -
236 312.34 100.0 1/1/98 Fee Simple 2,286 3,000
237 22,199.02 100.0 3/24/98 Fee Simple 29,760 -
238 11,555.56 95.0 3/25/98 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
239 51.73 100.0% 7/10/98 Fee Simple $ 18,963 $ 50,000
240 84.56 91.5 9/1/97 Fee Simple 39,000 -
241 23.68 100.0 6/22/98 Fee Simple 21,576 40,000
242 74.17 100.0 2/28/98 Fee Simple 8,913 24,105
243 39.83 85.2 2/28/98 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
244 185.70 100.0 3/5/98 Fee Simple 2,086 -
245 183.64 100.0 1/8/96 Fee Simple 2,086 -
246 17,087.15 92.0 1/30/98 Fee Simple 37,248 -
247 13,368.98 97.0 4/25/98 Fee Simple - -
248 81.97 100.0 2/5/98 Fee Simple 6,710 -
- -------------------------------------------------------------------------------------------------------
249 138.04 100.0 3/1/98 Fee Simple 5,424 21,672
250 214.45 97.0 4/21/98 Fee Simple 1,758 20,460
251 34.59 92.7 2/1/98 Fee Simple 15,864 45,228
252 59,397.25 100.0 2/24/98 Fee Simple 5,577 -
253 26,823.42 86.0 2/23/98 Fee Simple 23,250 -
- -------------------------------------------------------------------------------------------------------
254 16.76 96.9 5/1/98 Fee Simple - -
255 225.04 100.0 1/28/98 Fee Simple - -
256 57.56 100.0 5/8/98 Fee Simple 6,444 18,348
257 226.22 100.0 10/3/97 Fee Simple - -
258 96.25 98.3 4/30/98 Fee Simple 3,780 21,600
- -------------------------------------------------------------------------------------------------------
259 20,991.02 92.0 2/1/98 Fee Simple 31,436 -
260 23,286.14 84.6 5/21/98 Fee Simple 16,952 -
261 24,984.65 97.9 11/15/97 Fee Simple 23,136 -
262 55.80 100.0 6/1/98 Fee Simple 6,447 -
263 24,949.97 63.2 3/31/98 Fee Simple 49,020 -
- -------------------------------------------------------------------------------------------------------
264 43.74 94.6 1/31/98 Fee Simple 9,355 -
265 13,593.82 100.0 2/4/98 Fee Simple 39,600 -
266 55.36 77.0 5/2/98 Fee Simple 12,030 40,244
- -------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Largest Tenant
Control Tenant Area Lease Exp. Control
No. Largest Tenant Name Leased (Sq. Ft.) Date No.
=====================================================================================
<S> <C> <C> <C> <C>
199 Kroger 27,104 6/30/03 199
200 Sonic Corporation 56,383 11/30/02 200
201 201
202 202
203 Lillian August Designs 19,812 12/31/06 203
- -------------------------------------------------------------------------------------
204 204
205 Learning Tree Store 6,508 7/31/00 205
206 45th Street Garage Corp. 9/30/18 206
207 Fixture-World 116,016 6/9/18 207
208 K Mart Corporation 87,407 12/31/14 208
- -------------------------------------------------------------------------------------
209 209
210 TSC Industries, Inc. 19,038 3/31/09 210
211 Jitney Jungle Store 32,000 2/28/05 211
212 Big O Tire 4,412 4/30/06 212
213 Northwest Fabrics 23,500 12/31/02 213
- -------------------------------------------------------------------------------------
214 K & G, P.C. 7,370 5/31/08 214
215 Tenn Dept. of Envir 10,547 3/31/01 215
216 216
217 Reno Exercise Center 5,107 6/30/01 217
218 Coming Attractions, Inc. 19,435 9/4/98 218
- -------------------------------------------------------------------------------------
219 Sullivan, Wertz, McDade, et al 13,633 6/30/03 219
220 Computer Expo 13,200 3/31/06 220
221 Circuit City, Inc. 43,200 11/30/18 221
222 222
223 OWRB 24,712 12/31/98 223
- -------------------------------------------------------------------------------------
224 224
225 Fit-N-Fun 11,296 8/31/00 225
226 Great American Cleaners 3,235 12/31/99 226
227 227
228 228
- -------------------------------------------------------------------------------------
229 229
230 Intersoft 8,319 4/30/99 230
231 231
232 Staffmax Corporation 5,561 1/31/00 232
233 233
- -------------------------------------------------------------------------------------
234 234
235 235
236 Payless ShoeSource, Inc. 4,261 7/31/10 236
237 237
238 238
- -------------------------------------------------------------------------------------
239 Pac Bell 25,309 1/14/02 239
240 AIDS Service Center 17,200 3/31/07 240
241 J&J Furniture 33,940 12/31/02 241
242 King of Glory Church 10,077 11/1/00 242
243 243
- -------------------------------------------------------------------------------------
244 Walgreens 13,905 3/30/58 244
245 Walgreens 13,905 9/30/16 245
246 246
247 247
248 P. McClintock / C. Hall 2,300 10/31/00 248
- -------------------------------------------------------------------------------------
249 Southland Corp. 2,550 9/30/01 249
250 Columbian Emeralds 4,100 8/31/98 250
251 Work Center 4,646 9/30/99 251
252 252
253 253
- -------------------------------------------------------------------------------------
254 254
255 Eckerd Corporation 11,000 2/1/18 255
256 Silver Star Express, Inc. 10,000 7/31/03 256
257 Eckerd 10,908 3/31/18 257
258 Asahi Restaurant 3,575 9/30/98 258
- -------------------------------------------------------------------------------------
259 259
260 260
261 261
262 Clevland Clinic 42,979 12/31/00 262
263 263
- -------------------------------------------------------------------------------------
264 264
265 265
266 Joyner Hutcheson 7,490 3/31/99 266
- -------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ITALICS indicate mortgage loans secured by multiple properties.
<TABLE>
<CAPTION>
Control Loan
No. Seller Number Property Name
========================================================================================================
<S> <C> <C> <C>
267 Lehman Brothers 971223023 U-Stor Greenway
268 GMACCM GMAC3120 Cedars Apartments
- --------------------------------------------------------------------------------------------------------
269 GMACCM GMAC2480 Manny's Music Building
270 Lehman Brothers 980317022 Smoky Hill Shopping Center
271 Lehman Brothers 980407005 Schooset Village
272 Lehman Brothers 971217065 Ranch Circle Plaza
273 Lehman Brothers 980219004 Mini-Maxi Warehouse
- --------------------------------------------------------------------------------------------------------
274 Lehman Brothers 980303013 Country Hill Center
275 GMACCM GMAC1610 Kensington Garden Apartments
276 GMACCM GMAC1920 Central Eugene Industrial Park
277 GMACCM GMAC2900 The Sunset Village Apartments
278 Lehman Brothers 971209071 Berkshire Manor Apartments
- --------------------------------------------------------------------------------------------------------
279 Lehman Brothers 971112015 Olympus Shadows
280 Lehman Brothers 971023020 Oceanside Outparcel Building C
281 Lehman Brothers 971223022 U-Stor Bell
282 GMACCM GMAC1890 6420 Richmond Avenue
283 Lehman Brothers 980303048 Rolling Acres Retail Center
- --------------------------------------------------------------------------------------------------------
284 Lehman Brothers 980311030 Farm Credit Services
285 Lehman Brothers 980401011 Riverside Office Buiding
286 Lehman Brothers 970919012 Holiday Inn-Heritage
287 Lehman Brothers 1 Akers Away Mobile Home Park
288 GMACCM GMAC1970 Arrowhead Lakes Marketplace
- --------------------------------------------------------------------------------------------------------
289 GMACCM GMAC3100 Pear Orchard Village Shopping Center
290 Lehman Brothers 980106033B Wallgarden Shopping Center
291 Lehman Brothers 980415044 Pico&Union Plaza
292 GMACCM GMAC2490 Abrams Run Building
293 GMACCM GMAC2701 Bayhead Mobile Home Park
- --------------------------------------------------------------------------------------------------------
294 Lehman Brothers 971223029 Willow Creek Apartments
295 Lehman Brothers 980225057 Arbor Square Shopping Center
296 Lehman Brothers 971202002 Brookdale Towers
297 GMACCM GMAC1630 Roy's Trailer Park
298 Lehman Brothers 971217043 3 Ethel Boulevard
- --------------------------------------------------------------------------------------------------------
299 Lehman Brothers 11 Green River Apartments
300 GMACCM GMAC2500 Mid-Valley Business Center
301 GMACCM GMAC2510 Emerald Point Apartments
302 Lehman Brothers 971112000 Times Square Townhome Apartments
303 Lehman Brothers 54 El Rancho Drive Stowall
- --------------------------------------------------------------------------------------------------------
304 Lehman Brothers 59 Shurgard - Med Center
305 Lehman Brothers 971230018 Mesa Building
306 Lehman Brothers 25 Statewide Self Storage
307 GMACCM GMAC1940 1040 Sheridan Street
308 Lehman Brothers 15 Lincoln Plaza
- --------------------------------------------------------------------------------------------------------
309 Lehman Brothers 971029006 Lock-It Up Self Storage
310 Lehman Brothers 971029007 Lock-It Up Self Storage
311 Lehman Brothers 971112033 Bashas Square
312 GMACCM GMAC1650 Marina View Office Building
313 GMACCM GMAC1640 Eckerd - San Antonio
- --------------------------------------------------------------------------------------------------------
314 GMACCM GMAC2550 Georgetown Phase III Apartments
315 GMACCM GMAC1660 Calabasas Junction
316 GMACCM GMAC1900 Washington Ave. Office Building
317 Lehman Brothers 971217076 Sierra Vista
318 Lehman Brothers 971016034 Holiday Inn Express Anderson
- --------------------------------------------------------------------------------------------------------
319 Lehman Brothers 971008022 Boulevard Shops at the Kentlands
320 Lehman Brothers 980127013 Woodland Square Apartments
321 Lehman Brothers 971029044 Highview Place Apartments
322 Lehman Brothers 980106032 Party City Center
323 GMACCM GMAC2204 Green Gables Apartments
- --------------------------------------------------------------------------------------------------------
324 Lehman Brothers 971230009 Richmond/Sage Shopping Center
325 Lehman Brothers 7 Eastside Storage
326 GMACCM GMAC1670 Eckerd - Benbrook
327 GMACCM GMAC2600 Carmel Plaza
328 GMACCM GMAC2551 Rosedale Estates North
- --------------------------------------------------------------------------------------------------------
329 Lehman Brothers 17 Magnolia Lane MHP
330 Lehman Brothers 980211002 5045 North 12th Street
331 Lehman Brothers 980127004 Cooper Creek Village
332 Lehman Brothers 971029012 Best Western Casablanca Inn
333 Lehman Brothers 971009032 Bell-Haun Systems/Huber Village (Eastwind-Loan Level)
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Control
No. Property Type Address City
==================================================================================================================================
<S> <C> <C> <C>
267 Self Storage 3916 East Greenway Road Phoenix
268 Multifamily 1029 Shawnee Street Savannah
- ----------------------------------------------------------------------------------------------------------------------------------
269 Retail - Unanchored 156 West 48th Street New York
270 Retail - Unanchored NEC of Smoky Hill Road and Tower Road Aurora
271 Multifamily 180 Schooset Street Pembroke
272 Retail - Unanchored 4302 East Ray Road Phoenix
273 Self Storage 901 Santiago Drive Florence
- ----------------------------------------------------------------------------------------------------------------------------------
274 Retail - Unanchored SWC of 87th Street and Lackman Lenexa
275 Multifamily 1500 N. Lockwood Ridge Road Sarasota
276 Industrial 2601,2611,2621,2641 W. Fifth Ave. Eugene
277 Multifamily 904 Fairway Drive Colton
278 Multifamily 101 Highway 54 Bypass Carrboro
- ----------------------------------------------------------------------------------------------------------------------------------
279 Multifamily 3570 South 300 East Street Salt Lake City
280 Retail - Anchored 3644-3648 Long Beach Road Oceanside
281 Self Storage 17244 North 19th Avenue Phoenix
282 Office 6420 Richmond Avenue Houston
283 Retail - Anchored 2337 Romig Road Akron
- ----------------------------------------------------------------------------------------------------------------------------------
284 Office 3555 Ninth Street Northwest Rochester
285 Office 6177 River Crest Drive Riverside
286 Hotel - Limited Service 234 Third Avenue North St. Petersburg
287 Multifamily - Mobile Home Park 4225 45th Street West Palm Beach
288 Retail - Unanchored 20219 & 20265 North 59th Avenue Glendale
- ----------------------------------------------------------------------------------------------------------------------------------
289 Retail - Unanchored 1625 East County Line Road Jackson
290 Retail - Anchored 1480 N.E. Miami Gardens Drive Miami
291 Retail - Unanchored 1245 South Union Avenue Los Angeles
292 Industrial 310 Hansen Access Road King of Prussia
293 Multifamily - Mobile Home Park 7535 West Tennessee Street Tallahassee
- ----------------------------------------------------------------------------------------------------------------------------------
294 Multifamily 1029 Shive Lane Bowling Green
295 Retail - Unanchored 4005-4039 Carpenter Road Pittsfield
296 Office 5701 Shingle Creek Parkway Brooklyn Center
297 Multifamily - Mobile Home Park 6500 Maloney Avenue Stock Island
298 Industrial 3 Ethel Boulevard Wood-Ridge
- ----------------------------------------------------------------------------------------------------------------------------------
299 Multifamily 5411-5425 Highway 517 Dickinson
300 Industrial 336, 366, 402 Park Ave. & 31 Duroux Lane Basalt
301 Multifamily 8710 Oleander Avenue Fontana
302 Multifamily 3017 and 3097 36th Avenue South Grand Forks
303 Self Storage 506 El Rancho Dr. Sparks
- ----------------------------------------------------------------------------------------------------------------------------------
304 Self Storage 1615 Charlottle Avenue Nashville
305 Office 5959 Richmond Avenue Houston
306 Self Storage 965 E. Peckham Lane Reno
307 Industrial 1040 Sheridan Street Chicopee
308 Retail - Anchored 2175-2181 Lincoln Street Rhinelander
- ----------------------------------------------------------------------------------------------------------------------------------
309 Self Storage 15 Dixon Landing Road Milpitas
310 Self Storage 10730 North Blaney Avenue Cupertino
311 Retail - Anchored 5136, 5140 & 5190 West Peoria Avenue Glendale
312 Office 80 Ferry Boulevard Stratford
313 CTL - Retail 8402 Bandera Road San Antonio
- ----------------------------------------------------------------------------------------------------------------------------------
314 Multifamily 5640,5660,5680,5720,5740 E. River Rd Fridley
315 Retail - Unanchored 23504 Calabasas Road Calabasas
316 Office 8100 Washington Avenue Houston
317 Healthcare - Assisted Living 13815 Rodeo Drive Victorville
318 Hotel - Limited Service 103 Anderson Business Park Anderson
- ----------------------------------------------------------------------------------------------------------------------------------
319 Retail - Unanchored Kentlands Boulevard and Booth Street Gaithersburg
320 Multifamily 250 South Sage Avenue Mobile
321 Multifamily 244 Highview Circle Columbus
322 Retail - Unanchored U.S. Highway 40 East Plainfield
323 Multifamily 7 and 11 Tonnele Avenue Jersey City
- ----------------------------------------------------------------------------------------------------------------------------------
324 Retail - Unanchored 5201 Richmond Avenue Houston
325 Self Storage 6044 State Highway 303 East Bremerton
326 CTL - Retail 8660 US-377 Benbrook
327 Office 598 West Carmel Drive Carmel
328 Multifamily 2835-2855 Rice Street Roseville
- ----------------------------------------------------------------------------------------------------------------------------------
329 Multifamily - Mobile Home Park 2616 West Orangethorpe Ave Fullerton
330 Office 5045 North 12th Street Phoenix
331 Multifamily 4800 Burt Mar Drive Columbus
332 Hotel - Limited Service 1601 North El Camino Real San Clemente
333 Office 797 & 935 Eastwind Drive Westerville
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial Mortgage
No. State Code Groups Balance ($) Balance ($) Balance Pool Balance Rate (%)
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
267 AZ 85032 No 2,390,000 2,376,682 0.09 91.16 7.3200
268 GA 31419 No 2,400,000 2,350,542 0.09 91.26 8.8750
- -----------------------------------------------------------------------------------------------------------------------
269 NY 10036 No 2,325,000 2,319,892 0.09 91.35 7.8750
270 CO 80015 No 2,316,000 2,312,966 0.09 91.44 7.4100
271 MA 02359 No 2,300,000 2,298,848 0.09 91.53 7.6900
272 AZ 85044 No 2,300,000 2,298,648 0.09 91.62 7.2000
273 SC 29501 No 2,300,000 2,297,744 0.09 91.70 7.2700
- -----------------------------------------------------------------------------------------------------------------------
274 KS 66215 No 2,300,000 2,296,971 0.09 91.79 7.3900
275 FL 34237 No 2,300,000 2,295,173 0.09 91.88 7.4000
276 OR 97209 No 2,285,000 2,285,000 0.09 91.97 7.3200
277 CA 92324 No 2,280,000 2,280,000 0.09 92.06 6.9400
278 NC 27510 No 2,275,000 2,272,619 0.09 92.15 6.9700
- -----------------------------------------------------------------------------------------------------------------------
279 UT 84115 No 2,263,000 2,258,541 0.09 92.24 7.2100
280 NY 11572 No 2,250,000 2,246,576 0.09 92.33 7.3900
281 AZ 85023 No 2,250,000 2,237,462 0.09 92.41 7.3200
282 TX 77057 No 2,200,000 2,200,000 0.09 92.50 7.3300
283 OH 44320 No 2,200,000 2,197,022 0.09 92.59 7.2800
- -----------------------------------------------------------------------------------------------------------------------
284 MN 55901 No $ 2,200,000 $ 2,197,015 0.09% 92.67% 7.2700%
285 CA 92507 No 2,175,000 2,172,165 0.08 92.76 7.4300
286 FL 33701 No 2,175,000 2,168,426 0.08 92.84 7.5000
287 FL 33407 No 2,175,000 2,168,038 0.08 92.92 7.2100
288 AZ 85027 No 2,160,000 2,156,469 0.08 93.01 6.8600
- -----------------------------------------------------------------------------------------------------------------------
289 MS 39211 No 2,300,000 2,148,532 0.08 93.09 9.0400
290 FL 33179 No 2,150,000 2,143,332 0.08 93.18 7.3700
291 CA 90015 No 2,140,000 2,138,765 0.08 93.26 7.2600
292 PA 19406 No 2,100,000 2,100,000 0.08 93.34 7.0300
293 FL 32304 No 2,100,000 2,100,000 0.08 93.42 6.3500
- -----------------------------------------------------------------------------------------------------------------------
294 KY 42103 No 2,100,000 2,098,699 0.08 93.51 7.0300
295 MI 48108 No 2,100,000 2,097,108 0.08 93.59 7.2100
296 MN 55430 No 2,100,000 2,095,873 0.08 93.67 7.2200
297 FL 33040 No 2,100,000 2,093,543 0.08 93.75 7.3700
298 NJ 07075 No 2,100,000 2,091,556 0.08 93.83 7.6100
- -----------------------------------------------------------------------------------------------------------------------
299 TX 77539 No 2,080,000 2,077,128 0.08 93.91 7.2000
300 CO 81621 No 2,050,000 2,048,709 0.08 93.99 7.3800
301 CA 92334 No 2,040,000 2,040,000 0.08 94.07 6.9500
302 ND 58201 No 2,000,000 1,996,070 0.08 94.15 7.2200
303 NV 89431 No 2,000,000 1,996,036 0.08 94.23 7.7500
- -----------------------------------------------------------------------------------------------------------------------
304 TN 37203 No 2,000,000 1,995,642 0.08 94.31 7.2500
305 TX 77057 No 2,000,000 1,991,215 0.08 94.38 7.2400
306 NV 89502 No 1,950,000 1,945,962 0.08 94.46 7.5200
307 MA 01022 No 1,900,000 1,898,092 0.07 94.53 7.5000
308 WI 54501 No 1,900,000 1,896,234 0.07 94.61 7.7500
- -----------------------------------------------------------------------------------------------------------------------
309 CA 95035 No 1,900,000 1,894,058 0.07 94.68 7.1000
310 CA 95014 No 1,900,000 1,894,058 0.07 94.76 7.1000
311 AZ 85302 No 1,875,000 1,865,899 0.07 94.83 7.5200
312 CT 06497 No 1,850,000 1,847,350 0.07 94.90 7.5000
313 TX 78240 No 1,850,000 1,843,049 0.07 94.97 7.0500
- -----------------------------------------------------------------------------------------------------------------------
314 MN 55402 No 1,850,000 1,839,056 0.07 95.04 6.5700
315 CA 91302 No 1,837,500 1,834,764 0.07 95.12 7.5000
316 TX 77007 No 1,825,000 1,821,179 0.07 95.19 7.4100
317 CA 92392 No 1,800,000 1,796,731 0.07 95.26 7.5100
318 SC 29621 No 1,800,000 1,796,582 0.07 95.33 7.9700
- -----------------------------------------------------------------------------------------------------------------------
319 MD 20878 No 1,800,000 1,796,575 0.07 95.40 7.3400
320 AL 36606 No 1,800,000 1,796,281 0.07 95.47 7.0300
321 OH 43207 No 1,797,890 1,794,471 0.07 95.54 7.3900
322 IN 46168 No 1,780,000 1,777,591 0.07 95.61 7.2800
323 NJ 07306 No 1,760,000 1,760,000 0.07 95.67 6.9000
- -----------------------------------------------------------------------------------------------------------------------
324 TX 77056 No 1,755,000 1,751,615 0.07 95.74 7.2900
325 WA 98311 No 1,750,000 1,744,992 0.07 95.81 7.7700
326 TX 76126 No 1,750,000 1,743,425 0.07 95.88 7.0500
327 IN 46032 No 1,715,000 1,715,000 0.07 95.95 7.2500
328 MN 55113 No 1,700,000 1,689,944 0.07 96.01 6.5700
- -----------------------------------------------------------------------------------------------------------------------
329 CA 92633 No $ 1,680,000 $ 1,677,726 0.07% 96.08% 7.2800%
330 AZ 85014 No 1,675,000 1,675,000 0.07 96.14 7.0300
331 GA 31907 LB-2 1,660,000 1,654,224 0.06 96.21 7.4300
332 CA 92672 No 1,650,000 1,646,730 0.06 96.27 7.7500
333 OH 43081 No 1,650,000 1,641,716 0.06 96.34 7.3700
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Master Interest Original Remaining Term to Term to Original
Control Servicing Servicing Accrual Amortization Interest-Only Interest-Only Maturity Maturity Amortization
No. Fee Fee Method Type Period (Mos.) Period (Mos.) (Mos.) (Mos.) Term (Mos.)
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
267 30/360 Fully Amortizing 0 0 240 237 240
268 30/360 Balloon 0 0 120 99 300
- ---------------------------------------------------------------------------------------------------------------------------------
269 Act/360 Balloon 0 0 120 119 204
270 Act/360 Balloon 0 0 120 118 360
271 Act/360 Balloon 0 0 120 119 360
272 Act/360 Balloon 0 0 120 119 360
273 Act/360 Balloon 0 0 120 119 300
- ---------------------------------------------------------------------------------------------------------------------------------
274 Act/360 Balloon 0 0 120 118 360
275 Act/360 Balloon 0 0 120 117 360
276 30/360 Balloon 0 0 180 180 360
277 Act/360 Balloon 0 0 120 120 360
278 Act/360 Balloon 0 0 180 179 300
- ---------------------------------------------------------------------------------------------------------------------------------
279 Act/360 Balloon 0 0 120 117 360
280 30/360 Balloon 0 0 120 118 360
281 30/360 Fully Amortizing 0 0 240 237 240
282 Act/360 Balloon 0 0 84 84 360
283 Act/360 Balloon 0 0 120 118 360
- ---------------------------------------------------------------------------------------------------------------------------------
284 Act/360 Balloon 0 0 144 142 360
285 Act/360 Balloon 0 0 120 118 360
286 Act/360 Balloon 0 0 120 117 300
287 Act/360 Balloon 0 0 120 117 300
288 Act/360 Balloon 0 0 120 118 360
- ---------------------------------------------------------------------------------------------------------------------------------
289 30/360 Fully Amortizing 0 0 180 157 180
290 Act/360 Balloon 0 0 240 237 300
291 Act/360 Balloon 0 0 120 119 360
292 Act/360 Fully Amortizing 0 0 300 300 300
293 Act/360 Hyperamortizing 0 0 126 126 360
- ---------------------------------------------------------------------------------------------------------------------------------
294 Act/360 Balloon 0 0 120 119 360
295 Act/360 Balloon 0 0 120 118 360
296 Act/360 Balloon 0 0 120 117 360
297 30/360 Balloon 0 0 120 116 360
298 Act/360 Balloon 0 0 240 237 264
- ---------------------------------------------------------------------------------------------------------------------------------
299 Act/360 Balloon 0 0 120 118 360
300 Act/360 Balloon 0 0 120 119 360
301 Act/360 Balloon 0 0 120 120 360
302 Act/360 Balloon 0 0 120 117 360
303 Act/360 Balloon 0 0 120 118 300
- ---------------------------------------------------------------------------------------------------------------------------------
304 Act/360 Balloon 0 0 120 118 300
305 Act/360 Hyperamortizing 0 0 120 116 300
306 Act/360 Balloon 0 0 120 118 300
307 Act/360 Balloon 0 0 120 119 300
308 Act/360 Balloon 0 0 120 118 300
- ---------------------------------------------------------------------------------------------------------------------------------
309 30/360 Fully Amortizing 0 0 180 179 180
310 30/360 Fully Amortizing 0 0 180 179 180
311 Act/360 Hyperamortizing 0 0 120 113 360
312 Act/360 Balloon 0 0 120 118 360
313 Act/360 Fully Amortizing 0 0 240 238 240
- ---------------------------------------------------------------------------------------------------------------------------------
314 30/360 Fully Amortizing 0 0 120 119 120
315 30/360 Balloon 0 0 120 118 360
316 Act/360 Balloon 0 0 84 81 360
317 Act/360 Balloon 0 0 120 117 360
318 Act/360 Balloon 0 0 120 118 300
- ---------------------------------------------------------------------------------------------------------------------------------
319 Act/360 Balloon 0 0 120 117 360
320 Act/360 Balloon 0 0 120 117 360
321 Act/360 Hyperamortizing 0 0 178 175 359
322 Act/360 Balloon 0 0 144 142 360
323 Act/360 Balloon 0 0 120 120 360
- ---------------------------------------------------------------------------------------------------------------------------------
324 Act/360 Balloon 0 0 120 117 360
325 Act/360 Balloon 0 0 120 117 300
326 Act/360 Fully Amortizing 0 0 240 238 240
327 Act/360 Balloon 0 0 132 132 360
328 30/360 Fully Amortizing 0 0 120 119 120
- ---------------------------------------------------------------------------------------------------------------------------------
329 Act/360 Balloon 0 0 120 118 360
330 Act/360 Balloon 0 0 120 120 360
331 30/360 Fully Amortizing 0 0 300 297 300
332 Act/360 Balloon 0 0 180 178 300
333 Act/360 Hyperamortizing 0 0 120 113 360
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Remaining Underwritten
Control Amortization Origination Maturity Balloon Annual Net
No. Term (Mos.) Date or ARD Balance ($) Prepayment Provisions Debt Service ($) Cash Flow ($)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
267 237 4/17/98 5/1/18 - L(7),YM1%(12.75),O(.25) 227,898 301,267
268 279 10/31/96 11/1/06 1,980,016 L(2),YM1%(7.5),O(.5) 239,228 385,494
- -----------------------------------------------------------------------------------------------------------------------------------
269 203 6/12/98 7/1/08 1,339,598 L(2.083),D(7.417),O(.5) 250,488 322,282
270 358 5/28/98 6/1/08 2,041,851 L(5),D(4.75),O(.25) 192,616 258,719
271 359 7/1/98 7/1/08 2,042,298 L(4),D(5.75),O(.25) 196,587 264,535
272 359 7/1/98 7/1/08 2,017,072 L(4),D(5.75),O(.25) 187,346 283,392
273 299 6/22/98 7/1/08 1,855,882 L(4),D(5.75),O(.25) 199,851 313,892
- -----------------------------------------------------------------------------------------------------------------------------------
274 358 5/26/98 6/1/08 2,026,713 L(4),D(5.75),O(.25) 190,909 256,171
275 357 4/30/98 5/1/08 1,996,823 L(2.25),D(7.25),O(.5) 193,169 241,620
276 360 7/16/98 8/1/13 1,712,059 YM1%(14.5),O(.5) 188,356 260,987
277 360 7/15/98 8/10/08 1,958,594 L(2),D(7.5),O(.5) 182,793 300,630
278 299 6/8/98 7/1/13 1,437,327 L(7),D(7.75),O(.25) 192,429 276,070
- -----------------------------------------------------------------------------------------------------------------------------------
279 357 4/27/98 5/1/08 1,985,201 L(4),YM1%(5.75),O(.25) 184,516 258,284
280 358 5/5/98 6/1/08 1,948,126 L(4),D(5.75),O(.25) 186,758 244,721
281 237 4/17/98 5/1/18 - L(7),YM1%(12.75),O(.25) 214,548 298,222
282 360 7/2/98 8/1/05 2,018,597 L(2),D(4.5),O(.5) 183,462 251,318
283 358 5/20/98 6/1/08 1,933,139 L(4),D(5.75),O(.25) 180,632 234,901
- -----------------------------------------------------------------------------------------------------------------------------------
284 358 5/28/98 6/1/10 $ 1,851,049 L(6),D(5.75),O(.25) $ 180,453 $ 270,525
285 358 5/11/98 6/1/08 1,918,515 L(4),D(5.75),O(.25) 181,246 247,359
286 297 4/16/98 5/1/08 1,767,368 L(4),YM1%(5.75),O(.25), or DEF 192,877 313,750
287 297 4/8/98 5/1/08 1,751,856 L(5),YM1%(4.5),O(.5) 187,980 235,906
288 358 5/15/98 6/1/08 1,851,967 L(2.167),D(7.333),O(.5) 171,763 246,357
- -----------------------------------------------------------------------------------------------------------------------------------
289 157 8/19/96 9/1/11 - L(5),YM1%(5),O(5) 280,595 561,213
290 297 4/2/98 5/1/18 876,129 L(10),D(9.75),O(.25) 188,483 251,774
291 359 6/4/98 7/1/08 1,879,678 L(4),D(5.75),O(.25) 175,357 247,416
292 300 7/15/98 8/10/23 - YM1%(13),3(1),2(1),1(9.5),O(.5) 180,252 229,416
293 360 7/13/98 2/10/09 1,756,115 L(2),D(7.75),O(.75) 158,337 201,842
- -----------------------------------------------------------------------------------------------------------------------------------
294 359 6/5/98 7/1/08 1,833,472 L(4),D(5.5),O(.5) 168,164 232,418
295 358 5/28/98 6/1/08 1,841,931 L(4),D(5.75),O(.25) 171,225 249,612
296 357 4/6/98 5/1/08 1,842,688 L(4),YM1%(5.75),O(.25) 171,396 267,517
297 356 3/13/98 4/1/08 1,817,438 YM1%(9.5),O(.5) 173,964 274,759
298 261 4/6/98 5/1/18 452,636 L(9),D(10.75),O(.25) 196,920 256,692
- -----------------------------------------------------------------------------------------------------------------------------------
299 358 5/29/98 6/1/08 1,823,916 L(2.16),D(7.59),O(.25) 169,425 216,421
300 359 6/23/98 7/1/08 1,778,983 L(2.083),D(7.417),O(.5) 171,826 250,625
301 360 7/8/98 8/10/08 1,752,842 L(2),D(7.5),O(.5) 163,718 238,137
302 357 4/22/98 5/1/08 1,754,942 L(5),D(4.75),O(.25) 163,234 230,957
303 298 6/4/98 6/11/08 1,636,975 L(2.17),D(7.33),O(.5) 181,279 269,810
- -----------------------------------------------------------------------------------------------------------------------------------
304 298 5/29/98 6/1/08 1,612,596 L(5),YM1%(4.75),O(.25) 173,474 266,306
305 296 3/13/98 4/1/08 1,612,160 L(4),D(5.75),O(.25) 173,319 230,150
306 298 5/21/98 6/1/08 1,585,191 L(5),YM1%(4.75),O(.25) 173,228 262,809
307 299 6/5/98 7/1/08 1,519,189 L(2.083),D(7.417),O(.5) 170,143 219,190
308 298 5/21/98 6/11/08 1,550,819 L(2.17),D(7.58),O(.25) 172,215 221,390
- -----------------------------------------------------------------------------------------------------------------------------------
309 179 6/29/98 7/1/13 - L(7),D(7.75),O(.25) 206,210 333,918
310 179 6/29/98 7/1/13 - L(7),D(7.75),O(.25) 206,210 394,898
311 353 12/30/97 1/1/08 1,656,723 L(4),YM1%(5.5),O(.5) 157,632 216,318
312 358 5/26/98 6/1/08 1,609,709 L(2.167),D(7.333),O(.5) 156,903 181,786
313 238 5/4/98 6/1/18 - L(2.167),D(17.333),O(.5) 174,170 184,990
- -----------------------------------------------------------------------------------------------------------------------------------
314 119 6/30/98 7/1/08 - L(2.083),D(7.417),O(.5) 252,868 473,717
315 358 5/20/98 6/10/08 1,594,857 YM1%(9.5),O(.5) 154,177 209,382
316 357 4/17/98 5/1/05 1,676,493 L(2.25),D(4.25),O(.5) 153,427 198,541
317 357 5/1/98 5/1/08 1,591,210 L(4),D(5.75),O(.25) 151,178 248,620
318 298 5/21/98 6/1/08 1,482,763 L(4),YM1%(5.75),O(.25) 166,283 249,348
- -----------------------------------------------------------------------------------------------------------------------------------
319 357 4/28/98 5/1/08 1,584,348 L(4),D(5.75),O(.25) 148,671 192,609
320 357 4/3/98 5/1/08 1,571,594 L(4),D(5.75),O(.25) 144,141 223,444
321 356 4/30/98 3/1/13 1,403,160 L(3.833),D(10.75),O(.25) 149,407 188,736
322 358 5/29/98 6/1/10 1,498,156 L(4),D(7.75),O(.25) 146,148 213,009
323 360 7/9/98 8/1/08 1,510,457 L(2),D(7.5),O(.5) 140,527 192,369
- -----------------------------------------------------------------------------------------------------------------------------------
324 357 4/15/98 5/1/08 1,542,753 L(4),D(5.75),O(.25) 144,238 193,427
325 297 4/30/98 5/1/08 1,433,484 L(5),YM1%(4.75),O(.25) 158,895 216,491
326 238 5/4/98 6/1/18 - L(2.167),D(17.333),O(.5) 164,756 175,617
327 360 7/10/98 8/1/09 1,449,983 L(2),D(8.5),O(.5) 141,877 192,172
328 119 6/30/98 7/1/08 - L(2.083),D(7.417),O(.5) 232,365 432,690
- -----------------------------------------------------------------------------------------------------------------------------------
329 358 5/19/98 6/1/08 $ 1,476,215 L(5),YM1%(4.75),O(.25) $ 137,937 $ 193,520
330 360 7/6/98 8/1/08 1,462,202 L(4.5),D(5.25).O(.25) 134,131 182,004
331 297 4/30/98 5/1/23 - L(15),D(9.75),O(.25) 146,301 206,397
332 298 5/7/98 6/1/13 1,085,855 L(7),D(7.5),O(.5) 149,555 235,558
333 353 12/12/97 1/1/08 1,452,413 L(4),D(5.75),O(.25) 136,686 224,426
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten Cut-off Scheduled Sq. Ft, Units
Control NCF Appraised Appraisal Date Maturity or ARD Year Year Beds, Pads
No. DSCR (x) Value ($) Date LTV (%) Date LTV(%) Built Renovated or Rooms
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
267 1.32 3,400,000 1/8/98 69.9 0.0 1995 N/A 61,200 Sq Ft
268 1.61 3,750,000 6/16/98 62.7 52.8 1981 1995 144 Units
- ------------------------------------------------------------------------------------------------------------------------------------
269 1.29 3,100,000 11/11/97 74.8 43.2 1922 1969 14,148 Sq Ft
270 1.34 3,400,000 4/15/98 68.0 60.1 1997 1997 20,047 Sq Ft
271 1.35 2,875,000 5/1/97 80.0 71.0 1996 N/A 38 Units
272 1.51 3,085,000 4/23/98 74.5 65.4 1997 N/A 20,974 Sq Ft
273 1.57 3,100,000 3/19/98 74.1 59.9 1978 1990 84,975 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
274 1.34 3,100,000 2/20/98 74.1 65.4 1984,88 N/A 39,995 Sq Ft
275 1.25 2,950,000 3/4/98 77.8 67.7 1963-1972 N/A 93 Units
276 1.39 3,360,000 1/9/98 68.0 51.0 1979/80 N/A 107,450 Sq Ft
277 1.64 2,950,000 5/12/98 77.3 66.4 1988 1997 100 Units
278 1.43 3,625,000 1/2/98 62.7 39.7 1976 N/A 104 Units
- ------------------------------------------------------------------------------------------------------------------------------------
279 1.40 2,900,000 11/24/97 77.9 68.5 1972 1996 63 Units
280 1.31 3,100,000 11/1/97 72.5 62.8 1994 N/A 12,000 Sq Ft
281 1.39 3,300,000 1/8/98 67.8 0.0 1997 N/A 65,200 Sq Ft
282 1.59 3,100,000 3/25/98 70.4 61.0 1979 77,044 Sq Ft
283 1.30 2,800,000 4/8/98 78.5 69.0 1982 N/A 46,311 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
284 1.50 x $ 2,600,000 4/17/98 84.5% 71.2% 1997/98 N/A 34,678 Sq Ft
285 1.36 2,900,000 3/25/98 74.9 66.2 1989 N/A 25,558 Sq Ft
286 1.63 3,050,000 12/11/97 71.1 58.0 1926 1987 71 Rooms
287 1.25 2,919,000 1/16/98 74.3 60.0 1969 N/A 153 Pads
288 1.43 3,095,000 4/17/98 69.7 59.8 1997 N/A 20,360 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
289 2.00 4,520,000 7/1/98 47.5 0.0 1985 76,626 Sq Ft
290 1.34 2,870,000 1/7/98 74.7 30.5 1991 N/A 20,824 Sq Ft
291 1.41 2,900,000 2/25/98 73.8 64.8 1982 N/A 17,110 Sq Ft
292 1.27 2,850,000 6/1/98 73.7 0.0 1995 N/A 45,483 Sq Ft
293 1.27 3,200,000 5/1/98 65.6 54.9 1971 N/A 238 Pads
- ------------------------------------------------------------------------------------------------------------------------------------
294 1.38 2,800,000 3/18/98 75.0 65.5 1976 N/A 120 Units
295 1.46 2,800,000 2/5/98 74.9 65.8 1989 N/A 27,806 Sq Ft
296 1.56 3,450,000 2/1/98 60.8 53.4 1972 N/A 62,246 Sq Ft
297 1.58 3,000,000 1/2/98 69.8 60.6 1958 N/A 103 Pads
298 1.30 2,900,000 2/9/98 72.1 15.6 1977 N/A 65,700 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
299 1.28 2,600,000 4/1/98 79.9 70.2 1995 1998 48 Units
300 1.46 3,000,000 4/16/98 68.3 59.3 1988 - 1993 N/A 43,475 Sq Ft
301 1.45 2,580,000 5/13/98 79.1 67.9 1987 N/A 84 Units
302 1.41 2,550,000 12/15/97 78.3 68.8 1997 N/A 32 Units
303 1.49 2,820,000 4/27/98 70.8 58.1 1977-90 86,512 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
304 1.54 3,000,000 3/9/98 66.5 53.8 1995 59,165 Sq Ft
305 1.33 2,800,000 2/15/98 71.1 57.6 1984 N/A 28,974 Sq Ft
306 1.52 2,570,000 2/26/98 75.7 61.7 1985 1,232 Units
307 1.29 2,530,000 4/13/98 75.0 60.1 1984 N/A 74,500 Sq Ft
308 1.29 2,700,000 3/16/98 70.2 57.4 1993-94 45,794 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
309 1.62 3,260,000 1/1/98 58.1 0.0 1983 N/A 53,289 Sq Ft
310 1.92 3,750,000 1/1/98 50.5 0.0 1980 N/A 43,399 Sq Ft
311 1.37 2,500,000 8/27/97 74.6 66.3 1986-1987 N/A 45,619 Sq Ft
312 1.16 2,500,000 3/26/98 73.9 64.4 1948 1988-1994 33,380 Sq Ft
313 1.06 2,200,000 2/20/98 83.8 0.0 1997 N/A 10,908 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
314 1.87 6,700,000 5/11/98 27.5 0.0 1972 N/A 210 Units
315 1.36 2,450,000 12/5/97 74.9 65.1 1980, 1993, 1995 N/A 8,365 Sq Ft
316 1.29 2,600,000 3/12/98 70.1 64.5 1980 N/A 44,095 Sq Ft
317 1.64 3,000,000 1/22/98 59.9 53.0 1990 N/A 50 Units
318 1.50 2,400,000 1/1/98 74.9 61.8 1995 N/A 64 Rooms
- ------------------------------------------------------------------------------------------------------------------------------------
319 1.30 2,450,000 3/1/97 73.3 64.7 1997 N/A 11,864 Sq Ft
320 1.55 2,250,000 2/11/98 79.8 69.9 1974 N/A 128 Units
321 1.26 2,200,000 11/25/97 81.6 63.8 1996 N/A 60 Units
322 1.46 2,400,000 1/14/98 74.1 62.4 1990 N/A 17,636 Sq Ft
323 1.37 2,200,000 4/27/98 80.0 68.7 1901 1930's 88 Units
- ------------------------------------------------------------------------------------------------------------------------------------
324 1.34 2,250,000 3/5/98 77.9 68.6 1996 N/A 12,041 Sq Ft
325 1.36 2,300,000 2/17/98 75.9 62.3 1978,89 518 Units
326 1.07 2,090,000 2/20/98 83.4 0.0 1997 N/A 10,908 Sq Ft
327 1.35 2,290,000 5/12/98 74.9 63.3 1998 N/A 22,185 Sq Ft
328 1.86 6,200,000 5/11/98 27.3 0.0 1971 N/A 180 Units
- ------------------------------------------------------------------------------------------------------------------------------------
329 1.40 x $ 2,240,000 2/13/98 74.9% 65.9% 1965 48 Pads
330 1.36 2,325,000 6/1/98 72.0 62.9 1964 1997 26,771 Sq Ft
331 1.41 2,075,000 2/12/98 79.7 0.0 1973/1977 N/A 61 Units
332 1.58 2,600,000 3/4/98 63.3 41.8 1988 N/A 42 Rooms
333 1.64 2,800,000 11/14/97 58.6 51.9 1977/81 N/A 41,070 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cut-off
Sq. Ft, Unit Replacement Annual
Control Bed, Pad Occupancy Occupancy Ownership Reserve TI/LC
No. or Room ($) Percentage (%) Date Interest Deposit Deposit
=======================================================================================================
<S> <C> <C> <C> <C> <C> <C>
267 38.83 100.0 1/25/98 Fee Simple 3,600 -
268 16,323.21 94.0 12/31/97 Fee Simple 28,800 -
- -------------------------------------------------------------------------------------------------------
269 163.97 100.0 6/8/98 Fee Simple 4,812 30,000
270 115.38 93.7 7/9/98 Fee Simple 2,015 6,970
271 60,496.01 100.0 5/1/98 Fee Simple 8,550 -
272 109.60 93.9 5/19/98 Fee Simple 3,148 17,792
273 27.04 93.0 3/19/98 Fee Simple 4,290 -
- -------------------------------------------------------------------------------------------------------
274 57.43 90.0 3/30/98 Fee Simple 8,004 17,871
275 24,679.28 97.0 4/15/98 Fee Simple 23,250 -
276 21.27 100.0 6/1/98 Fee Simple 10,745 -
277 22,800.00 99.0 4/30/98 Fee Simple 20,600 -
278 21,852.10 93.3 2/26/98 Fee Simple 31,512 -
- -------------------------------------------------------------------------------------------------------
279 35,849.85 96.8 12/29/97 Fee Simple 19,644 -
280 187.21 100.0 4/1/98 Fee Simple 1,800 8,724
281 34.32 90.8 1/25/98 Fee Simple 3,600 -
282 28.56 89.0 7/1/98 Fee Simple 16,179 32,627
283 47.44 100.0 3/17/98 Fee Simple 6,947 16,672
- -------------------------------------------------------------------------------------------------------
284 63.35 100.0% 6/22/98 Fee Simple $ 12,600 $ 12,600
285 84.99 100.0 4/3/98 Fee Simple 3,880 22,176
286 30,541.22 67.5 12/31/97 Fee Simple 46,812 -
287 14,170.18 94.0 1/16/98 Fee Simple 8,429 -
288 105.92 93.0 3/30/98 Fee Simple 3,053 -
- -------------------------------------------------------------------------------------------------------
289 28.04 84.0 4/15/98 Fee Simple 7,680 -
290 102.93 100.0 2/11/98 Fee Simple 2,253 4,860
291 125.00 93.6 4/8/98 Fee Simple 2,567 18,440
292 46.17 100.0 6/8/98 Fee Simple - -
293 8,823.53 84.0 4/25/98 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
294 17,489.16 98.3 3/25/98 Fee Simple 35,520 -
295 75.42 88.1 4/1/98 Fee Simple 2,781 21,284
296 33.67 87.3 4/6/98 Fee Simple 18,674 -
297 20,325.66 100.0 4/16/98 Fee Simple 1,648 -
298 31.83 100.0 12/1/97 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
299 43,273.50 95.8 4/21/98 Fee Simple 6,869 13,738
300 47.12 97.0 6/16/98 Fee Simple 6,546 -
301 24,285.71 95.0 4/30/98 Fee Simple 21,000 -
302 62,377.17 100.0 3/2/98 Fee Simple 6,400 -
303 23.07 95.0 5/31/98 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
304 33.73 71.5 11/30/97 Fee Simple - -
305 68.72 100.0 1/23/98 Fee Simple 6,431 25,893
306 1,579.51 80.0 3/8/98 Fee Simple 6,055 -
307 25.48 100.0 5/15/98 Fee Simple 7,450 15,816
308 41.41 95.6 5/1/98 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
309 35.54 97.0 3/1/98 Fee Simple 3,730 -
310 43.64 100.0 7/6/98 Fee Simple 9,113 -
311 40.90 93.4 6/10/98 Fee Simple 13,879 36,000
312 55.34 100.0 4/1/98 Fee Simple 6,676 33,000
313 168.96 100.0 3/2/98 Fee Simple 1,636 -
- -------------------------------------------------------------------------------------------------------
314 8,757.41 98.0 6/26/98 Fee Simple - -
315 219.34 100.0 3/11/98 Fee Simple 2,342 -
316 41.30 100.0 4/1/98 Fee Simple 11,464 23,123
317 35,934.61 94.0 3/31/98 Fee Simple 14,400 -
318 28,071.59 69.1 10/31/97 Fee Simple 34,132 -
- -------------------------------------------------------------------------------------------------------
319 151.43 82.3 3/16/98 Fee Simple 1,780 10,725
320 14,033.44 98.4 2/1/98 Fee Simple 32,128 -
321 29,907.85 98.3 3/23/98 Fee Simple 9,900 -
322 100.79 100.0 4/9/98 Fee Simple 1,764 8,100
323 20,000.00 96.0 5/20/98 Fee Simple 22,000 -
- -------------------------------------------------------------------------------------------------------
324 145.47 100.0 3/18/98 Fee Simple 1,806 6,864
325 3,368.71 94.0 1/30/98 Fee Simple 12,000 -
326 159.83 100.0 3/2/98 Fee Simple 1,636 -
327 77.30 100.0 7/17/98 Fee Simple 2,220 10,000
328 9,388.58 99.0 6/26/98 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
329 34,952.63 100.0% 3/1/98 Fee Simple $ 5,779 $ -
330 62.57 93.7 5/1/98 Fee Simple 5,451 24,290
331 27,118.42 98.4 2/22/98 Fee Simple 15,250 -
332 39,207.85 66.2 12/31/97 Fee Simple 27,086 -
333 39.97 93.5 7/17/98 Fee Simple 12,972 24,996
- -------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Largest Tenant
Control Tenant Area Lease Exp. Control
No. Largest Tenant Name Leased (Sq. Ft.) Date No.
=====================================================================================
<S> <C> <C> <C> <C>
267 267
268 268
- -------------------------------------------------------------------------------------
269 Manny's Musical 14,148 6/30/18 269
270 Columbia Health/ONE, LLC 5,670 2/28/00 270
271 271
272 Madison Ave. Hair Salon 3,900 11/20/02 272
273 273
- -------------------------------------------------------------------------------------
274 Sherwin Williams 5,625 7/1/03 274
275 275
276 Cronin Company 17,450 10/31/99 276
277 277
278 278
- -------------------------------------------------------------------------------------
279 279
280 C.W.P.W. 8,000 7/1/04 280
281 281
282 Cook Inlet Radio Partners 4,870 8/14/99 282
283 Marc Glassman, Inc. 36,237 10/31/04 283
- -------------------------------------------------------------------------------------
284 Farm Credit Services 15,240 12/8/07 284
285 Cross Country Wireless 12,983 3/31/01 285
286 286
287 287
288 Video Update 6,697 3/31/08 288
- -------------------------------------------------------------------------------------
289 Red, Hot & Blue 9,767 10/31/03 289
290 Walgreen Co. 13,824 6/30/31 290
291 Adelita Food/ Panderia Restaurant 6,000 7/31/02 291
292 Betson Coin Op. 16,767 1/31/05 292
293 293
- -------------------------------------------------------------------------------------
294 294
295 Rider's, Inc. 3,444 9/14/02 295
296 High Tech Institute 10,573 2/28/03 296
297 297
298 President Container, Inc. 65,700 11/30/17 298
- -------------------------------------------------------------------------------------
299 299
300 Self-Storage Facility 29,625 6/30/98 300
301 301
302 302
303 303
- -------------------------------------------------------------------------------------
304 304
305 Media Ent/Spot City 6,908 9/30/01 305
306 306
307 Regency Warehousing & Dist.Inc 74,500 5/31/13 307
308 JC Penny 22,954 3/31/09 308
- -------------------------------------------------------------------------------------
309 309
310 310
311 Basha's (Shadow) 311
312 STV/Seelye Stevenson, et al 7,497 1/31/00 312
313 Eckerd Corporation 10,908 9/30/17 313
- -------------------------------------------------------------------------------------
314 314
315 Fin's Creekside Restaurant 3,500 4/30/05 315
316 State of Texas-Dept. of Trans. 26,767 5/31/02 316
317 317
318 318
- -------------------------------------------------------------------------------------
319 Kentlands Veterinary Hospital, P.C. 1,954 1/31/03 319
320 320
321 321
322 Party City Corp. 12,036 10/31/07 322
323 323
- -------------------------------------------------------------------------------------
324 Ruichi's Taqueria 3,600 1/1/07 324
325 325
326 Eckerd Corporation 10,908 11/25/17 326
327 Coldwell Banker 8,596 6/14/08 327
328 328
- -------------------------------------------------------------------------------------
329 329
330 Nobeus Property Mgmt 4,238 2/28/02 330
331 331
332 332
333 Bell-Haun - BTS, CEL 15,300 12/31/02 333
- -------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ITALICS indicate mortgage loans secured by multiple properties.
<TABLE>
<CAPTION>
Control Loan
No. Seller Number Property Name
========================================================================================================
<S> <C> <C> <C>
333a Lehman Brothers 971009032A Bell-Haun Systems (Eastwind-Property Level)
333b Lehman Brothers 971009032B Huber Village Professional Center (Eastwind-Prop. Level)
334 GMACCM GMAC2610 Robert Blake Building
335 GMACCM GMAC1700 9 Commonwealth Avenue
336 Lehman Brothers 980311049 Central Self-Storage Facility (Eugene)
- --------------------------------------------------------------------------------------------------------
337 Lehman Brothers 980204031 Terrace Apartments
338 GMACCM GMAC1710 Arbor View Apartments
339 Lehman Brothers 14 Kinnaird & Franke Building
340 Lehman Brothers 980309005 Rancho Terrace Center
341 GMACCM GMAC1730 Shadow Tree Apartments
- --------------------------------------------------------------------------------------------------------
342 Lehman Brothers 980422027 Federal Express Building
343 Lehman Brothers 980401017 Little Miami Estates Mobile Home Park
344 Lehman Brothers 980311033 4000 Park
345 GMACCM GMAC2870 Crossroads Plaza Office Building
346 Lehman Brothers 980408004 Copper Crest
- --------------------------------------------------------------------------------------------------------
347 GMACCM GMAC1740 Rapp Building-Sunset Mercantile Center
348 Lehman Brothers 980112002 Lexington Place Apartments
349 Lehman Brothers 980127014 Cherry Hill Apartments
350 Lehman Brothers 970619009 Norton Plaza Shopping Center
351 Lehman Brothers 970530002 Rite Aid - Walcott
- --------------------------------------------------------------------------------------------------------
352 Lehman Brothers 62 Shurgaurd - Tumwater
353 Lehman Brothers 980204030 Crystal Lake Apartments
354 Lehman Brothers 980127006 Peacock Woods I&II
355 GMACCM GMAC2630 Griffith Park Office Building
356 GMACCM GMAC1800 211 Pharr Road
- --------------------------------------------------------------------------------------------------------
357 GMACCM GMAC1770 11th Street Property
358 Lehman Brothers 980106031 Expressway Tower
359 Lehman Brothers 980127010 Shannon Woods I Apartments
360 Lehman Brothers 60 Shurgard - West Olympia
361 Lehman Brothers 980602501 Bridgestone/Firestone Service Facility
- --------------------------------------------------------------------------------------------------------
362 Lehman Brothers 980401023 Lake Elsinore Self Storage
363 Lehman Brothers 980127007 Village Square
364 Lehman Brothers 63 Shurgaurd - Yakima
365 Lehman Brothers 971120008 Country Oaks Shopping Center
366 Lehman Brothers 980401015 Branch Hill Mhp
- --------------------------------------------------------------------------------------------------------
367 GMACCM GMAC1780 JMF Enterprises
368 Lehman Brothers 980204029 Spanish Villa Apartments
369 Lehman Brothers 980127004C IHOP
370 Lehman Brothers 27 Village Mobile Home Park
371 Lehman Brothers 971121004 Big Lots Shopping Center
- --------------------------------------------------------------------------------------------------------
372 Lehman Brothers 980401016 Tradewinds Mhp
373 GMACCM GMAC1860 Sam Houston Parkway Office Bldg
374 GMACCM GMAC2670 38th Ave. Office Building
375 GMACCM GMAC2660 620 Auto Exchange
376 GMACCM GMAC1810 Eastwood Lake Apartments
- --------------------------------------------------------------------------------------------------------
377 Lehman Brothers 971201019 Southland - Lakecity
378 Lehman Brothers 980311048 Central Self-Storage - Warner
379 GMACCM GMAC2700 Uniprop - Aster Lake Estates
380 Lehman Brothers 980303005 Torrey Pines Apartments
381 Lehman Brothers 980206001 2610-2614 North Wilmington Avenue (Chief Auto)
- --------------------------------------------------------------------------------------------------------
382 GMACCM GMAC1820 233 E. 89th Street
383 Lehman Brothers 980106033A Blockbuster Center
384 Lehman Brothers 12 Gunbarrel Pointe
385 GMACCM GMAC1830 Westcello Apartments
386 Lehman Brothers 980311017 Colton House Apartments
- --------------------------------------------------------------------------------------------------------
387 Lehman Brothers 980127009 Robinwood II Apartments
388 Lehman Brothers 980106033D Shops of South Athens Shopping Center
389 GMACCM GMAC1840 Hamilton Heights Apartments
390 Lehman Brothers 971113002 A Medical Office Building
391 Lehman Brothers 971222013 Southgate Apartments
- --------------------------------------------------------------------------------------------------------
392 GMACCM GMAC3130 Montbello Centre
393 GMACCM GMAC1870 Waters West Plaza
394 Lehman Brothers 971217057 Miller Place S.C.
395 GMACCM GMAC2205 Kennedy Boulevard Apartments
396 Lehman Brothers 971222012 Swartswood Road
- --------------------------------------------------------------------------------------------------------
397 Lehman Brothers 61 Shurgaurd - Richland
398 Lehman Brothers 16 Lyndon Lawn MHP
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Control
No. Property Type Address City
==================================================================================================================================
<S> <C> <C> <C>
333a Office 935 Eastwind Drive Westerville
333b Office 797 Eastwind Drive Westerville
334 Office 1452 Second Street Santa Monica
335 Multifamily 9 Commonwealth Avenue Boston
336 Special Purpose 1601 Highway 99 North Eugene
- ----------------------------------------------------------------------------------------------------------------------------------
337 Multifamily 4619 Lake Avenue Dallas
338 Multifamily 2601-2675 S.E. 162nd Avenue Portland
339 Retail - Unanchored 2731 Hurstbourne Pkwy Louisville
340 Retail - Unanchored 9581-9625 Foothill Boulevard Rancho Cucamonga
341 Multifamily 1800 Billings & 1905 Blackhawk Aurora
- ----------------------------------------------------------------------------------------------------------------------------------
342 Industrial 4470 Warm Springs Road Columbus
343 Multifamily - Mobile Home Park 439 Morrow Road South Lebanon
344 Office 4000 - 4020 South 57th Avenue Greenacres
345 Office 1501 Mockingbird Lane Victoria
346 Retail - Unanchored 2241 NW Military Highway San Antonio
- ----------------------------------------------------------------------------------------------------------------------------------
347 Office 9999 S. W. 72nd Ave. Miami
348 Multifamily 2024, 2050 and 2074 30th Avenue South Grand Forks
349 Multifamily 909 Farr Road Columbus
350 Retail - Anchored SEQ Park Avenue and Coeburn Avenue Norton
351 CTL - Retail 744 Walcott Road Walcott
- ----------------------------------------------------------------------------------------------------------------------------------
352 Self Storage 6000 Linderson Way S.W. Tumwater
353 Multifamily 4503 Lake Avenue Dallas
354 Multifamily 1514 Forest Avenue Columbus
355 Office 5075 SW Griffith Drive Beaverton
356 Retail - Unanchored 211 Pharr Road Atlanta
- ----------------------------------------------------------------------------------------------------------------------------------
357 Retail - Unanchored 518-536 E. 11th Street Los Angeles
358 Office 2431 East 51st Street Tulsa
359 Multifamily 6370 Shannon Parkway Union City
360 Self Storage 3513 Mudbay Road West Olympia
361 CTL - Retail 6412 IH 35 S Austin
- ----------------------------------------------------------------------------------------------------------------------------------
362 Self Storage 29151 Riverside Drive Lake Elsinore
363 Multifamily 1441 Boxwood Boulevard Columbus
364 Self Storage 920 East Mead Yakima
365 Retail - Anchored West Main Street (US Highway 52) Rockwell
366 Multifamily - Mobile Home Park 11200 River Road Harrison
- ----------------------------------------------------------------------------------------------------------------------------------
367 Office 11331-7 Ventura Blvd. Studio City
368 Multifamily 110 North Jupiter Road Garland
369 CTL - Retail 25340 Madison Avenue Murietta
370 Multifamily - Mobile Home Park 2705 Hoeke Lane Austin
371 Retail - Anchored 407-489 North Cannon Boulevard Kanna+G532olis
- ----------------------------------------------------------------------------------------------------------------------------------
372 Multifamily - Mobile Home Park 3027 Lindale Pike Amelia
373 Office 888 Sam Houston Parkway Houston
374 Office 6499 38th Avenue North St Petersburg
375 Retail - Unanchored 1300 - 1316 Round Rock Avenue Round Rock
376 Multifamily 1102-1120 North East Street Emporia
- ----------------------------------------------------------------------------------------------------------------------------------
377 CTL - Retail NWC of State Highway 50 and Grand Highway Clermont
378 Self Storage 641 East Warner Road Chandler
379 Multifamily - Mobile Home Park 3250 West Tennessee Street Tallahassee
380 Multifamily 5106 East FM 517 Dickinson
381 Retail - Unanchored 2610-2614 North Wilmington Avenue Compton
- ----------------------------------------------------------------------------------------------------------------------------------
382 Multifamily 233 E. 89th Street New York
383 Retail - Anchored 1251,1253,1255 & 1257 Airport Road Destin
384 Retail - Unanchored 2265 Gunbarrel Road Chattanooga
385 Multifamily 915, 917, 919, & 921 Golf Course Road Monticello
386 Multifamily 20825-20875 Chagrin Boulevard Shaker Heights
- ----------------------------------------------------------------------------------------------------------------------------------
387 Multifamily 3900 Pritmore Road #94 Jacksonville
388 Retail - Anchored 2026 South Milledge Avenue Athens
389 Multifamily 1252,1254 & 1256 Barbara Drive Venice
390 Office 612 East Janss Road Thousand Oaks
391 Multifamily Arrowhead Court Phillipsburg
- ----------------------------------------------------------------------------------------------------------------------------------
392 Industrial 4465 Paris Street Denver
393 Retail - Unanchored 4040 West Waters Avenue Tampa
394 Retail - Unanchored 725 NY State Route 25A Miller Place
395 Multifamily 1855 Kennedy Boulevard Jersey City
396 Multifamily 1 Swartzwood Road Newton
- ----------------------------------------------------------------------------------------------------------------------------------
397 Self Storage 55 Aaron Drive Richland
398 Multifamily - Mobile Home Park 1208 US Route 11 Town of Hastings
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial Mortgage
No. State Code Groups Balance ($) Balance ($) Balance Pool Balance Rate (%)
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
333a OH 43081 7.3700
333b OH 43801 7.3700
334 CA 90401 No 1,600,000 1,600,000 0.06 96.40 7.2500
335 MA 02116 No 1,600,000 1,598,902 0.06 96.46 7.0500
336 OR 97402 No 1,600,000 1,598,579 0.06 96.52 7.7100
- -----------------------------------------------------------------------------------------------------------------------
337 TX 75219 LB-1 1,600,000 1,598,407 0.06 96.58 7.2000
338 OR 97236 No 1,585,000 1,580,316 0.06 96.65 7.5700
339 KY 40220 No 1,575,000 1,573,024 0.06 96.71 7.5800
340 CA 91730 No 1,575,000 1,572,858 0.06 96.77 7.2600
341 CO 80011 No 1,560,000 1,558,191 0.06 96.83 6.7500
- -----------------------------------------------------------------------------------------------------------------------
342 GA 31904 No 1,560,000 1,555,104 0.06 96.89 7.3100
343 OH 45065 No 1,540,000 1,539,069 0.06 96.95 7.1100
344 FL 33463 No 1,540,000 1,538,536 0.06 97.01 7.4100
345 TX 77901 No 1,525,000 1,525,000 0.06 97.07 7.3300
346 TX 78213 No 1,525,000 1,524,137 0.06 97.13 7.3200
- -----------------------------------------------------------------------------------------------------------------------
347 FL 33173 No 1,515,000 1,511,380 0.06 97.19 7.1750
348 ND 58201 No 1,500,000 1,499,124 0.06 97.25 7.2200
349 GA 31907 LB-2 1,500,000 1,494,780 0.06 97.31 7.4300
350 VA 24273 No 1,496,513 1,490,371 0.06 97.36 7.7400
351 CT 06716 No 1,484,247 1,477,894 0.06 97.42 7.2500
- -----------------------------------------------------------------------------------------------------------------------
352 WA 98501 LB-3 1,456,000 1,452,990 0.06 97.48 7.5300
353 TX 75219 LB-1 1,450,000 1,448,556 0.06 97.53 7.2000
354 GA 31906 LB-2 1,450,000 1,444,954 0.06 97.59 7.4300
355 OR 97005 No 1,435,000 1,434,079 0.06 97.65 7.3200
356 GA 30305 No 1,400,000 1,397,961 0.05 97.70 7.6100
- -----------------------------------------------------------------------------------------------------------------------
357 CA 90015 No 1,400,000 1,395,772 0.05 97.76 7.5000
358 OK 74105 No 1,400,000 1,394,076 0.05 97.81 7.4400
359 GA 30291 No 1,392,000 1,389,124 0.05 97.86 7.0300
360 WA 98502 LB-3 1,392,000 1,389,123 0.05 97.92 7.5300
361 TX 78745 No 1,383,677 1,382,541 0.05 97.97 6.9400
- -----------------------------------------------------------------------------------------------------------------------
362 CA 92530 No 1,380,000 1,378,623 0.05 98.03 7.1900
363 GA 31906 LB-2 1,360,000 1,355,268 0.05 98.08 7.4300
364 WA 98903 LB-3 1,352,000 1,349,204 0.05 98.13 7.5300
365 NC 28138 No 1,350,000 1,347,247 0.05 98.18 7.0800
366 OH 45030 No 1,340,000 1,339,190 0.05 98.24 7.1100
- -----------------------------------------------------------------------------------------------------------------------
367 CA 91614 No 1,312,500 1,306,627 0.05 98.29 7.5000
368 TX 75042 No 1,300,000 1,298,705 0.05 98.34 7.2000
369 CA 92562 No 1,297,000 1,297,187 0.05 98.39 8.0200
370 TX 78744 No 1,300,000 1,297,178 0.05 98.44 7.2700
371 NC 28081 No 1,300,000 1,295,839 0.05 98.49 7.2100
- -----------------------------------------------------------------------------------------------------------------------
372 OH 45030 No $ 1,290,000 $ 1,289,230 0.05% 98.54% 7.1100%
373 TX 77024 No 1,270,000 1,267,268 0.05 98.59 7.2900
374 FL 33710 No 1,250,000 1,250,000 0.05 98.64 7.3750
375 TX 78664 No 1,250,000 1,250,000 0.05 98.69 7.5000
376 KS 66801 No 1,235,000 1,234,169 0.05 98.73 7.1250
- -----------------------------------------------------------------------------------------------------------------------
377 FL 34711 No 1,235,598 1,232,901 0.05 98.78 7.8400
378 AZ 85225 No 1,225,000 1,224,391 0.05 98.83 7.7100
379 FL 32304 No 1,200,000 1,200,000 0.05 98.88 6.3500
380 TX 77539 No 1,200,000 1,199,245 0.05 98.92 6.9800
381 CA 90222 No 1,200,000 1,198,355 0.05 98.97 7.2300
- -----------------------------------------------------------------------------------------------------------------------
382 NY 10028 No 1,200,000 1,197,137 0.05 99.02 6.9400
383 FL 32541 No 1,200,000 1,193,354 0.05 99.06 7.3700
384 TN 37421 No 1,185,000 1,183,610 0.05 99.11 7.8400
385 MN 55362 No 1,180,000 1,177,294 0.05 99.16 7.0000
386 OH 44122 No 1,175,000 1,173,382 0.05 99.20 7.2100
- -----------------------------------------------------------------------------------------------------------------------
387 FL 32257 No 1,160,000 1,157,603 0.05 99.25 7.0300
388 GA 30605 No 1,150,000 1,148,832 0.04 99.29 7.1100
389 FL 32601 No 1,150,000 1,148,276 0.04 99.34 7.2800
390 CA 91360 No 1,100,000 1,100,000 0.04 99.38 7.3200
391 NJ 08865 No 1,100,000 1,094,099 0.04 99.42 7.0500
- -----------------------------------------------------------------------------------------------------------------------
392 CO 80239 No 1,150,000 1,042,405 0.04 99.46 9.1250
393 FL 33614 No 1,042,000 1,040,788 0.04 99.50 7.3750
394 NY 11764 No 1,025,000 1,023,620 0.04 99.54 7.3000
395 NJ 07305 No 1,020,000 1,020,000 0.04 99.58 6.9000
396 NJ 07860 No 1,000,000 998,288 0.04 99.62 7.0500
- -----------------------------------------------------------------------------------------------------------------------
397 WA 99352 LB-3 992,000 989,949 0.04 99.66 7.5300
398 NY 13036 No 975,000 972,135 0.04 99.70 7.6400
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Master Interest Original Remaining Term to Term to Original
Control Servicing Servicing Accrual Amortization Interest-Only Interest-Only Maturity Maturity Amortization
No. Fee Fee Method Type Period (Mos.) Period (Mos.) (Mos.) (Mos.) Term (Mos.)
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
333a
333b
334 30/360 Balloon 0 0 120 120 360
335 Act/360 Balloon 0 0 120 119 360
336 Act/360 Balloon 0 0 84 83 300
- ---------------------------------------------------------------------------------------------------------------------------------
337 Act/360 Balloon 0 0 120 119 300
338 30/360 Balloon 0 0 120 116 360
339 Act/360 Balloon 0 0 120 118 360
340 Act/360 Balloon 0 0 120 118 360
341 Act/360 Balloon 0 0 120 119 300
- ---------------------------------------------------------------------------------------------------------------------------------
342 Act/360 Balloon 0 0 84 81 300
343 Act/360 Balloon 0 0 120 119 360
344 Act/360 Balloon 0 0 120 119 300
345 Act/360 Balloon 0 0 84 84 360
346 Act/360 Balloon 0 0 120 119 360
- ---------------------------------------------------------------------------------------------------------------------------------
347 30/360 Balloon 0 0 120 117 360
348 Act/360 Balloon 0 0 120 119 360
349 30/360 Fully Amortizing 0 0 300 297 300
350 Act/360 Balloon 0 0 120 114 360
351 30/360 Fully Amortizing 0 0 223 221 223
- ---------------------------------------------------------------------------------------------------------------------------------
352 Act/360 Balloon 0 0 120 118 300
353 Act/360 Balloon 0 0 120 119 300
354 30/360 Fully Amortizing 0 0 300 297 300
355 Act/360 Balloon 0 0 120 119 360
356 30/360 Balloon 0 0 120 118 360
- ---------------------------------------------------------------------------------------------------------------------------------
357 30/360 Fully Amortizing 0 0 180 179 180
358 Act/360 Balloon 0 0 120 116 300
359 Act/360 Balloon 0 0 120 117 360
360 Act/360 Balloon 0 0 120 118 300
361 30/360 Step 0 0 231 230 231
- ---------------------------------------------------------------------------------------------------------------------------------
362 Act/360 Balloon 0 0 120 119 300
363 30/360 Fully Amortizing 0 0 300 297 300
364 Act/360 Balloon 0 0 120 118 300
365 Act/360 Balloon 0 0 120 117 360
366 Act/360 Balloon 0 0 120 119 360
- ---------------------------------------------------------------------------------------------------------------------------------
367 Act/360 Balloon 0 0 120 116 300
368 Act/360 Balloon 0 0 120 119 300
369 30/360 Step 0 0 275 274 275
370 Act/360 Balloon 0 0 119 117 300
371 Act/360 Hyperamortizing 0 0 120 117 300
- ---------------------------------------------------------------------------------------------------------------------------------
372 Act/360 Balloon 0 0 120 119 362
373 Act/360 Balloon 0 0 84 81 360
374 30/360 Balloon 0 0 120 120 360
375 Act/360 Balloon 0 0 120 120 300
376 Act/360 Balloon 0 0 120 119 360
- ---------------------------------------------------------------------------------------------------------------------------------
377 30/360 Step 0 0 177 176 177
378 Act/360 Balloon 0 0 84 83 360
379 Act/360 Hyperamortizing 0 0 126 126 360
380 Act/360 Balloon 0 0 60 59 360
381 Act/360 Balloon 0 0 144 142 360
- ---------------------------------------------------------------------------------------------------------------------------------
382 Act/360 Balloon 0 0 120 117 357
383 30/360 Fully Amortizing 0 0 240 237 240
384 Act/360 Balloon 0 0 120 118 360
385 Act/360 Balloon 0 0 120 117 360
386 Act/360 Balloon 0 0 120 118 360
- ---------------------------------------------------------------------------------------------------------------------------------
387 Act/360 Balloon 0 0 120 117 360
388 Act/360 Balloon 0 0 120 119 300
389 Act/360 Balloon 0 0 120 118 360
390 Act/360 Balloon 0 0 120 120 360
391 Act/360 Balloon 0 0 60 57 240
- ---------------------------------------------------------------------------------------------------------------------------------
392 30/360 Balloon 0 0 84 32 240
393 30/360 Balloon 0 0 120 119 300
394 Act/360 Balloon 0 0 120 118 360
395 Act/360 Balloon 0 0 120 120 360
396 Act/360 Balloon 0 0 120 119 240
- ---------------------------------------------------------------------------------------------------------------------------------
397 Act/360 Balloon 0 0 120 118 300
398 Act/360 Balloon 0 0 120 117 300
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Remaining Underwritten
Control Amortization Origination Maturity Balloon Annual Net
No. Term (Mos.) Date or ARD Balance ($) Prepayment Provisions Debt Service ($) Cash Flow ($)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
333a
333b
334 360 7/8/98 8/1/08 1,380,966 L(2),D(7.5),O(.5) 130,978 184,717
335 359 6/26/98 7/1/08 1,378,020 L(2.083),D(7.417),O(.5) 129,735 166,774
336 299 6/8/98 7/1/05 1,420,623 L(2.5),5%(1.5),4%(1),3%(1.75),O(.25) 144,519 227,950
- -----------------------------------------------------------------------------------------------------------------------------------
337 299 6/4/98 7/1/08 1,288,279 L(4),D(5.75),O(.25) 138,161 213,254
338 356 3/23/98 4/1/08 1,377,814 L(5),1(4.5),O(.5) 133,903 173,406
339 358 5/8/98 6/1/08 1,394,524 L(5),YM1%(4.75),O(.25) 133,188 176,193
340 358 5/22/98 6/1/08 1,383,238 L(4),D(5.75),O(.25) 129,060 173,515
341 299 6/29/98 7/1/08 1,221,545 YM1%(9.5),O(.5) 130,524 238,897
- -----------------------------------------------------------------------------------------------------------------------------------
342 297 5/1/98 5/1/05 1,374,418 L(3),D(3.75),O(.25) 136,034 174,257
343 359 6/24/98 7/1/08 1,347,387 L(4),D(5.75),O(.25) 124,316 207,664
344 299 6/4/98 7/1/08 1,247,940 L(4),D(5.75),O(.25) 135,486 176,145
345 360 7/2/98 8/1/05 1,399,255 L(2),D(4.5),O(.5) 127,172 242,601
346 359 6/4/98 7/1/08 1,341,563 L(4),D(5.75),O(.25) 125,708 163,665
- -----------------------------------------------------------------------------------------------------------------------------------
347 357 4/9/98 5/1/08 1,305,361 YM1%(9.5),O(.5) 123,096 173,736
348 359 6/1/98 7/1/08 1,316,166 L(5),D(4.75),O(.25) 122,426 174,213
349 297 4/30/98 5/1/23 - L(15),D(9.75),O(.25) 132,200 173,787
350 354 1/30/98 2/1/08 1,329,269 L(4),D(5.5),O(.5) 128,530 160,664
351 221 5/22/98 1/1/17 - L(10),D(8.333),O(.25) 145,613 149,253
- -----------------------------------------------------------------------------------------------------------------------------------
352 298 5/28/98 6/1/08 1,183,963 L(6),YM1%(3.75),O(.25) 129,458 162,099
353 299 6/4/98 7/1/08 1,167,503 L(4),D(5.75),O(.25) 125,208 175,090
354 297 4/30/98 5/1/23 - L(15),D(9.75),O(.25) 127,793 164,368
355 359 6/4/98 7/1/08 1,243,054 L(2.083),D(7.417),O(.5) 119,599 159,470
356 358 5/11/98 6/1/08 1,218,056 YM1%(9.5),O(.5) 118,736 172,653
- -----------------------------------------------------------------------------------------------------------------------------------
357 179 7/1/98 7/1/13 - L(14.5),O(.5) 155,738 348,107
358 296 3/16/98 4/1/08 1,135,394 L(4),D(5.75),O(.25) 123,496 158,297
359 357 4/3/98 5/1/08 1,215,367 L(4),D(5.75),O(.25) 111,469 151,870
360 298 5/28/98 6/1/08 1,131,920 L(6),YM1%(3.75),O(.25) 123,767 157,712
361 230 6/26/98 10/1/17 - L(10),D(9.25) 109,663 109,992
- -----------------------------------------------------------------------------------------------------------------------------------
362 299 6/17/98 7/1/08 1,110,800 L(5),D(4.75),O(.25) 119,057 174,969
363 297 4/30/98 5/1/23 - L(15),D(9.75),O(.25) 119,861 151,410
364 298 5/28/98 6/1/08 1,099,315 L(6),YM1%(3.75),O(.25) 120,211 153,870
365 357 4/8/98 5/1/08 1,180,255 L(4),D(5.75),O(.25) 108,651 148,200
366 359 6/24/98 7/1/08 1,172,401 L(4),D(5.75),O(.25) 108,171 170,325
- -----------------------------------------------------------------------------------------------------------------------------------
367 296 4/1/98 4/1/08 1,049,436 L(2.333),D(7.167),O(.5) 117,525 160,341
368 299 6/4/98 7/1/08 1,046,728 L(4),D(5.75),O(.25) 112,256 179,363
369 274 6/4/98 6/1/21 - L(10),D(12.91) 101,781 105,750
370 298 5/22/98 5/1/08 1,051,658 L(5),YM1%(4.667),O(.25) 112,959 178,517
371 297 4/16/98 5/1/08 1,047,085 L(4),D(5.75),O(.25) 112,356 185,890
- -----------------------------------------------------------------------------------------------------------------------------------
372 361 6/24/98 7/1/08 $ 1,130,407 L(4),D(5.75),O(.25) $ 104,015 $ 174,594
373 357 4/3/98 5/1/05 1,164,587 YM1%(6.5),O(.5) 105,500 107,175
374 360 7/15/98 8/10/08 1,081,929 L(2),D(7.5),O(.5) 103,601 154,577
375 300 7/6/98 8/1/08 999,468 L(2),D(7.5),O(.5) 111,923 164,881
376 359 6/16/98 7/1/08 1,065,519 L(2.083),D(7.417),O(.5) 100,902 130,323
- -----------------------------------------------------------------------------------------------------------------------------------
377 176 6/17/98 4/1/13 - L(7),D(7.75) 129,233 133,119
378 359 6/2/98 7/1/05 1,140,939 L(2.5),5%(1.5),4%(1),3%(1.75),O(.25) 104,907 140,006
379 360 7/13/98 2/10/09 1,003,494 L(2),D(7.75),O(.75) 90,479 95,584
380 359 6/24/98 7/1/03 1,136,482 L(2.08),D(2.67),O(.25) 95,610 133,742
381 358 5/29/98 6/1/10 1,008,341 L(4),D(7.75),O(.25) 98,038 138,998
- -----------------------------------------------------------------------------------------------------------------------------------
382 354 4/15/98 5/1/08 1,026,573 YM1%(9.5),O(.5) 96,514 131,200
383 237 4/2/98 5/1/18 - L(10),D(9.75),O(.25) 114,863 165,054
384 358 5/6/98 6/1/08 1,055,955 L(5),YM1%(4.75),O(.25) 102,760 122,658
385 357 4/30/98 5/1/08 1,015,097 L(2.25),D(7.25),O(.5) 95,196 124,991
386 358 5/18/98 6/1/08 1,030,604 L(4),D(5.75),O(.25) 95,805 129,743
- -----------------------------------------------------------------------------------------------------------------------------------
387 357 4/3/98 5/1/08 1,012,806 L(4),D(5.75),O(.25) 92,891 118,288
388 299 6/3/98 7/1/08 923,381 L(5),D(4.75),O(.25) 98,506 126,727
389 358 5/12/98 6/1/08 995,718 L(2.167),D(7.333),O(.5) 95,425 134,635
390 360 7/6/98 8/1/08 967,533 L(4),YM1%(5.75),O(.25) 90,675 133,704
391 237 4/7/98 5/1/03 955,976 L(2.5),D(2),O(.5) 102,736 138,156
- -----------------------------------------------------------------------------------------------------------------------------------
392 188 3/30/94 4/1/01 951,754 L(2),YM1%(4.75),O(.25) 125,274 195,682
393 299 6/29/98 7/10/08 827,869 L(2.083),D(7.417),O(.5) 91,389 123,924
394 358 5/28/98 6/1/08 901,131 L(4),D(5.75),O(.25) 84,325 116,654
395 360 7/9/98 8/1/08 875,378 L(2),D(7.5),O(.5) 81,442 111,790
396 239 7/1/98 7/1/08 682,182 L(4),D(5.5),O(.5) 93,396 119,747
- -----------------------------------------------------------------------------------------------------------------------------------
397 298 5/28/98 6/1/08 806,656 L(6),YM1%(3.75),O(.25) 88,202 110,287
398 297 4/27/98 5/1/08 795,590 L(5),YM1%(4.75),O(.25) 87,530 104,664
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Underwritten Cut-off Scheduled Sq. Ft, Units
Control NCF Appraised Appraisal Date Maturity or ARD Year Year Beds, Pads
No. DSCR (x) Value ($) Date LTV (%) Date LTV(%) Built Renovated or Rooms
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
333a 1,800,000 11/14/97 1981 N/A 22,900 Sq Ft
333b 1,000,000 11/23/97 1977 N/A 18,170 Sq Ft
334 1.41 2,300,000 5/7/98 69.6 60.0 1922 1996 7,200 Sq Ft
335 1.29 2,380,000 2/18/98 67.2 57.9 1861 1938/1989/1996 14 Units
336 1.58 2,800,000 4/2/98 57.1 50.7 1986-1989 N/A 75,354 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
337 1.54 2,290,000 10/22/97 69.8 56.3 1971 N/A 130 Units
338 1.30 2,300,000 9/17/97 68.7 59.9 1975 1995-1997 70 Units
339 1.32 2,100,000 3/22/98 74.9 66.4 1990 1995 19,200 Sq Ft
340 1.34 2,100,000 3/2/98 74.9 65.9 1979 N/A 24,470 Sq Ft
341 1.83 3,060,000 3/30/98 50.9 39.9 1972 1995 - 1997 118 Units
- ------------------------------------------------------------------------------------------------------------------------------------
342 1.28 2,080,000 3/27/98 74.8 66.1 1997 N/A 33,021 Sq Ft
343 1.67 2,300,000 1/2/98 66.9 58.6 1960'S-74 N/A 204 Pads
344 1.30 2,075,000 4/7/98 74.2 60.1 1983 N/A 27,240 Sq Ft
345 2.24 2,500,000 3/24/98 52.0 47.7 1982 N/A 69,527 Sq Ft
346 1.30 2,100,000 4/30/98 72.6 63.9 1988 N/A 20,570 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
347 1.41 2,020,000 1/10/98 74.8 64.6 1985 22,422 Sq Ft
348 1.42 1,875,000 12/15/97 80.0 70.2 1986 N/A 52 Units
349 1.31 1,950,000 2/10/98 76.7 0.0 1972 N/A 90 Units
350 1.25 2,150,000 8/7/97 69.3 61.8 1976-1977 1980 70,575 Sq Ft
351 1.03 1,610,000 12/16/97 91.8 0.0 1996-97 N/A 11,180 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
352 1.25 1,820,000 1/16/98 79.8 65.1 1974 40,368 Sq Ft
353 1.40 1,950,000 6/30/98 74.3 59.9 1970 N/A 131 Units
354 1.29 1,900,000 2/12/98 76.1 0.0 1967,1984 N/A 59 Units
355 1.33 2,070,000 4/20/98 69.3 60.1 1979 N/A 18,934 Sq Ft
356 1.45 1,900,000 1/17/98 73.6 64.1 1986 N/A 12,800 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
357 2.24 2,500,000 11/19/97 55.8 0.0 1938 1989 7,550 Sq Ft
358 1.28 1,875,000 1/21/98 74.4 60.6 1970 N/A 44,562 Sq Ft
359 1.36 1,740,000 2/2/98 79.8 69.9 1983 N/A 60 Units
360 1.27 1,740,000 1/16/98 79.8 65.1 1989 36,975 Sq Ft
361 1.00 1,400,000 3/23/98 98.8 0.0 1997 N/A 6,633 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
362 1.47 1,850,000 5/6/98 74.5 60.0 1978,1988 1988 44,091 Sq Ft
363 1.26 1,700,000 2/10/98 79.7 0.0 1970 N/A 70 Units
364 1.28 1,690,000 1/22/98 79.8 65.1 1975 40,055 Sq Ft
365 1.36 1,700,000 12/16/97 79.3 69.4 1986 N/A 42,480 Sq Ft
366 1.57 2,000,000 1/2/98 67.0 58.6 1978 N/A 143 Pads
- ------------------------------------------------------------------------------------------------------------------------------------
367 1.36 1,900,000 3/5/98 68.8 55.2 1978 N/A 19,150 Sq Ft
368 1.60 1,790,000 6/30/98 72.6 58.5 1967 1997 120 Units
369 1.04 1,400,000 4/1/98 92.7 0.0 1997 N/A 5,000 Sq Ft
370 1.58 1,760,000 3/12/98 73.7 59.8 1984 104 Pads
371 1.65 1,800,000 1/29/98 72.0 58.2 1970 N/A 67,200 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
372 1.68 x $ 1,925,000 1/2/98 67.0% 58.7% 1971 1978 137 Pads
373 1.32 2,200,000 3/5/98 44.4 40.9 1980 N/A 46,821 Sq Ft
374 1.49 1,800,000 4/17/98 69.4 60.1 1973 N/A 19,560 Sq Ft
375 1.47 1,700,000 4/15/98 73.5 58.8 1979 & 1982 N/A 9,057 Sq Ft
376 1.29 1,700,000 3/3/98 72.6 62.7 1984 Ongoing Upgrades 80 Units
- ------------------------------------------------------------------------------------------------------------------------------------
377 1.03 1,500,000 3/9/98 82.2 0.0 1998 N/A 2,940 Sq Ft
378 1.33 2,350,000 4/7/98 52.1 48.6 1996 N/A 62,600 Sq Ft
379 1.06 2,000,000 5/1/98 60.0 50.2 1968 N/A 193 Pads
380 1.40 1,500,000 2/12/98 80.0 75.8 1972 1997 58 Units
381 1.42 1,590,000 12/15/97 75.4 63.4 1997 N/A 9,850 Sq Ft
- ------------------------------------------------------------------------------------------------------------------------------------
382 1.36 1,500,000 2/12/98 79.8 68.4 1920 1996 19 Units
383 1.44 1,610,000 1/14/98 74.1 0.0 1996 N/A 11,068 Sq Ft
384 1.19 1,770,000 2/18/98 66.9 59.7 1997 11,456 Sq Ft
385 1.31 1,475,000 3/3/98 79.8 68.8 1985,1986 1997 48 Units
386 1.35 1,500,000 2/4/98 78.2 68.7 1947-1948 N/A 45 Units
- ------------------------------------------------------------------------------------------------------------------------------------
387 1.27 1,450,000 2/18/98 79.8 69.9 1980 N/A 78 Units
388 1.29 1,850,000 1/7/98 62.1 49.9 1982 N/A 49,548 Sq Ft
389 1.41 1,550,000 3/4/98 74.1 64.2 1983 N/A 42 Units
390 1.47 1,550,000 12/12/97 71.0 62.4 1974 1994 6,250 Sq Ft
391 1.34 1,650,000 2/13/98 66.3 57.9 1960's 1990's 49 Units
- ------------------------------------------------------------------------------------------------------------------------------------
392 1.56 2,790,000 7/9/98 37.4 34.1 1984 62,584 Sq Ft
393 1.36 1,440,000 2/17/98 72.3 57.5 1979 24,452 Sq Ft
394 1.38 1,375,000 2/10/98 74.5 65.5 1988 N/A 18,692 Sq Ft
395 1.37 1,275,000 4/27/98 80.0 68.7 1901 Ongoing 45 Units
396 1.28 1,495,000 6/1/98 66.8 45.6 1964 N/A 33 Units
- ------------------------------------------------------------------------------------------------------------------------------------
397 1.25 1,240,000 1/21/98 79.8 65.1 1976,80 36,597 Sq Ft
398 1.20 1,300,000 2/2/98 74.8 61.2 1965 85 Pads
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cut-off
Sq. Ft, Unit Replacement Annual
Control Bed, Pad Occupancy Occupancy Ownership Reserve TI/LC
No. or Room ($) Percentage (%) Date Interest Deposit Deposit
=======================================================================================================
<S> <C> <C> <C> <C> <C> <C>
333a 100.0 7/17/98 4,580 -
333b 85.4 7/17/98 - -
334 222.22 100.0 5/7/98 Fee Simple 1,728 12,000
335 114,207.29 100.0 3/27/98 Fee Simple 3,038 -
336 21.21 78.6 3/22/98 Fee Simple 12,300 -
- -------------------------------------------------------------------------------------------------------
337 12,295.44 92.3 2/25/98 Fee Simple 39,000 -
338 22,575.95 94.0 2/16/98 Fee Simple 17,500 -
339 81.93 100.0 4/2/98 Fee Simple 3,050 -
340 64.28 89.6 5/21/98 Fee Simple 7,000 14,484
341 13,205.00 98.0 3/30/98 Fee Simple 29,520 -
- -------------------------------------------------------------------------------------------------------
342 47.09 100.0 12/31/96 Fee Simple 3,302 -
343 7,544.46 93.1 3/30/98 Fee Simple 10,200 -
344 56.48 100.0 5/13/98 Fee Simple 4,086 11,685
345 21.93 80.0 6/24/98 Fee Simple 17,382 33,732
346 74.10 100.0 2/1/98 Fee Simple 3,497 8,228
- -------------------------------------------------------------------------------------------------------
347 67.41 100.0 2/17/98 Fee Simple 3,872 25,000
348 28,829.30 100.0 12/29/97 Fee Simple 10,400 -
349 16,608.67 97.8 4/21/98 Fee Simple 22,500 -
350 21.12 86.1 2/17/98 Fee Simple 10,630 4,954
351 132.19 100.0 4/29/96 Fee Simple 1,680 -
- -------------------------------------------------------------------------------------------------------
352 35.99 79.6 12/31/97 Fee Simple - -
353 11,057.68 92.4 2/25/98 Fee Simple 39,300 -
354 24,490.75 93.2 4/21/98 Fee Simple 14,750 -
355 75.74 100.0 5/31/98 Fee Simple 2,840 -
356 109.22 100.0 1/1/98 Fee Simple 2,304 10,324
- -------------------------------------------------------------------------------------------------------
357 184.87 100.0 5/1/98 Fee Simple 3,780 -
358 31.28 98.3 2/27/98 Fee Simple 6,684 36,288
359 23,152.06 93.3 2/28/98 Fee Simple 13,620 -
360 37.57 85.6 12/31/97 Fee Simple - -
361 208.43 100.0 6/27/96 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
362 31.27 98.1 5/6/98 Fee Simple 6,614 -
363 19,360.96 97.1 2/22/98 Fee Simple 34,221 61,598
364 33.68 78.9 12/31/97 Fee Simple - -
365 31.71 100.0 5/19/98 Fee Simple 6,372 -
366 9,364.96 99.0 2/11/98 Fee Simple 7,152 -
- -------------------------------------------------------------------------------------------------------
367 68.23 100.0 3/10/98 Fee Simple 10,724 20,000
368 10,822.54 98.3 2/25/98 Fee Simple 39,000 -
369 259.44 100.0 4/7/97 Fee Simple 1,250 -
370 12,472.87 96.2 4/22/98 Fee Simple 12,292 12,292
371 19.28 100.0 2/1/98 Fee Simple 10,080 15,000
- -------------------------------------------------------------------------------------------------------
372 9,410.44 97.0% 3/30/98 Fee Simple $ 6,852 $ -
373 27.07 93.0 3/18/98 Fee Simple 7,023 33,600
374 63.91 100.0 5/1/98 Fee Simple 7,824 -
375 138.01 100.0 3/2/98 Fee Simple 1,630 11,633
376 15,427.11 99.0 5/1/98 Fee Simple 21,200 -
- -------------------------------------------------------------------------------------------------------
377 419.35 100.0 1/7/98 Fee Simple 450 -
378 19.56 77.6 4/30/98 Fee Simple 10,200 -
379 6,217.62 84.0 4/25/98 Fee Simple - -
380 20,676.64 98.3 3/21/98 Fee Simple 11,600 -
381 121.66 100.0 2/9/98 Fee Simple 1,516 3,260
- -------------------------------------------------------------------------------------------------------
382 63,007.22 100.0 3/13/98 Fee Simple - -
383 107.82 100.0 2/11/98 Fee Simple 1,770 6,000
384 103.32 80.5 2/5/98 Fee Simple 4,250 -
385 24,526.95 100.0 3/31/98 Fee Simple 13,440 -
386 26,075.15 100.0 4/24/98 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
387 14,841.07 91.0 2/1/98 Fee Simple 14,898 -
388 23.19 88.4 2/3/98 Fee Simple 4,955 15,000
389 27,339.90 100.0 5/7/98 Fee Simple 12,451 -
390 176.00 100.0 2/10/98 Fee Simple 2,904 6,300
391 22,328.55 95.9 2/2/98 Fee Simple 14,976 -
- -------------------------------------------------------------------------------------------------------
392 16.66 100.0 1/19/98 Fee Simple 9,600 -
393 42.56 100.0 4/1/98 Fee Simple 5,135 18,685
394 54.76 100.0 5/21/98 Fee Simple 2,804 8,411
395 22,666.67 98.0 4/21/98 Fee Simple 11,250 -
396 30,251.15 96.9 6/23/98 Fee Simple 9,152 -
- -------------------------------------------------------------------------------------------------------
397 27.05 54.4 12/31/97 Fee Simple - -
398 11,436.88 96.5 2/1/98 Fee Simple 31,032 -
- -------------------------------------------------------------------------------------------------------
<CAPTION>
Largest Largest Tenant
Control Tenant Area Lease Exp. Control
No. Largest Tenant Name Leased (Sq. Ft.) Date No.
=====================================================================================
<S> <C> <C> <C> <C>
333a Bell-Haun 15,300 12/31/02 333a
333b Bell-Haun 5,170 12/31/00 333b
334 Partners/USA 7,200 10/15/02 334
335 335
336 336
- -------------------------------------------------------------------------------------
337 337
338 338
339 Kinnaird & Francke 8,491 11/14/05 339
340 Thai B-B-Q 2,880 2/28/03 340
341 341
- -------------------------------------------------------------------------------------
342 Federal Express Corporation, Inc. 33,021 9/30/07 342
343 - 0 343
344 Proffile Marketing Research 12,485 5/31/07 344
345 Norwest Bank 9,056 4/14/01 345
346 Silk Greenery 7,145 5/31/01 346
- -------------------------------------------------------------------------------------
347 Siam Restaurant 2,340 1/1/01 347
348 348
349 349
350 Helig-Meyers 30,051 7/31/04 350
351 Rite-Aid 11,180 1/26/17 351
- -------------------------------------------------------------------------------------
352 352
353 353
354 354
355 Interactive Technology 5,162 10/31/02 355
356 Mobile Paint Mfg. - Dwoskin's 4,000 12/31/01 356
- -------------------------------------------------------------------------------------
357 Hwan Il Noh 1,200 3/31/00 357
358 Comp One 7,460 1/31/03 358
359 359
360 360
361 Bridgestone/ Firestone Inc. 6,633 9/30/17 361
- -------------------------------------------------------------------------------------
362 362
363 363
364 364
365 Food Lion 30,280 7/19/06 365
366 366
- -------------------------------------------------------------------------------------
367 Zenith Healthcare 5,950 3/1/03 367
368 368
369 IHOP 5,000 10/31/22 369
370 370
371 Big Lots 42,000 5/31/00 371
- -------------------------------------------------------------------------------------
372 372
373 Epsey, Hutson & Associates 8,332 7/31/99 373
374 NCS Healthcare 2,872 12/31/99 374
375 7-11 2,777 9/30/03 375
376 376
- -------------------------------------------------------------------------------------
377 The Southland Corporation 2,940 3/31/13 377
378 378
379 379
380 380
381 Chief Auto Parts, Inc. 6,000 9/30/07 381
- -------------------------------------------------------------------------------------
382 382
383 Blockbuster Videos, Inc. 6,500 4/30/06 383
384 Hollywood Video 6,656 2/1/12 384
385 385
386 386
- -------------------------------------------------------------------------------------
387 387
388 Bi-Lo 25,298 8/31/02 388
389 389
390 Community Medical Group 6,250 7/31/04 390
391 391
- -------------------------------------------------------------------------------------
392 Commercial Testing & Engineer 21,629 9/30/02 392
393 Charlie's 5,000 3/25/03 393
394 Tusc Co. Laundromat 2,600 5/31/08 394
395 395
396 396
- -------------------------------------------------------------------------------------
397 397
398 398
- -------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ITALICS indicate mortgage loans secured by multiple properties.
<TABLE>
<CAPTION>
Control Loan
No. Seller Number Property Name
========================================================================================================
<S> <C> <C> <C>
399 Lehman Brothers 980127008 Fairmeadow Apartments
400 Lehman Brothers 971203029 Hillcrest Plaza Shopping Center
401 GMACCM GMAC2203 Glenwood Apartments
- --------------------------------------------------------------------------------------------------------
402 Lehman Brothers 980309004 Bakers Plaza
403 Lehman Brothers 980324029 Monroe Central Point Center
404 Lehman Brothers 980401014 Hazel Hurst Mobile Home Park
405 Lehman Brothers 980317049 58th Street Plaza
406 GMACCM GMAC2552 Robinwood Apartments
- --------------------------------------------------------------------------------------------------------
407 GMACCM GMAC2201 The Sherwood Apartments
408 GMACCM GMAC2202 Wayne Street Apartments
<CAPTION>
Control
No. Property Type Address City
==================================================================================================================================
<S> <C> <C> <C>
399 Multifamily 401 A 31st Avenue, S.E. Moultrie
400 Retail - Anchored U.S. Highway 287 and U.S. Highway 70 Vernon
401 Multifamily 60 Glenwood Avenue Jersey City
- ----------------------------------------------------------------------------------------------------------------------------------
402 Retail - Unanchored 9538-9554 Foothill Boulevard Rancho Cucamonga
403 Retail - Unanchored 1436-1458 West Mound Street Columbus
404 Multifamily - Mobile Home Park 8001 Hamilton Avenue Mt. Healthy
405 Retail - Unanchored 5831-45 South Western Avenue Chicago
406 Multifamily 3133 109th Ln. NW, 10974-10990 Flora St. Coon Rapids
- ----------------------------------------------------------------------------------------------------------------------------------
407 Multifamily 2280 Kennedy Boulevard Jersey City
408 Multifamily 450 - 452 Wayne Street Jersey City
<CAPTION>
Cross % of Aggregate Cumulative
Control Zip Collateralized Original Cut-off Date Cut-off Date % of Initial Mortgage
No. State Code Groups Balance ($) Balance ($) Balance Pool Balance Rate (%)
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
399 GA 31768 No 960,000 958,016 0.04 99.74 7.0300
400 TX 76384 No 935,000 931,912 0.04 99.77 7.0500
401 NJ 07306 No 920,000 920,000 0.04 99.81 6.9000
- -----------------------------------------------------------------------------------------------------------------------
402 CA 91730 No 900,000 898,283 0.04 99.84 7.3300
403 OH 43223 No 875,000 872,944 0.03 99.88 7.2600
404 OH 45231 No 830,000 829,498 0.03 99.91 7.1100
405 IL 60636 No 780,000 779,257 0.03 99.94 7.4000
406 MN 55433 No 600,000 596,451 0.02 99.96 6.5700
- -----------------------------------------------------------------------------------------------------------------------
407 NJ 07305 No 500,000 500,000 0.02 99.98 6.9000
408 NJ 07306 No 440,000 440,000 0.02 100.00 6.9000
$2,563,948,705 7.0895%
<CAPTION>
Master Interest Original Remaining Term to Term to Original
Control Servicing Servicing Accrual Amortization Interest-Only Interest-Only Maturity Maturity Amortization
No. Fee Fee Method Type Period (Mos.) Period (Mos.) (Mos.) (Mos.) Term (Mos.)
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
399 Act/360 Balloon 0 0 120 117 360
400 Act/360 Hyperamortizing 0 0 120 117 300
401 Act/360 Balloon 0 0 120 120 360
- ---------------------------------------------------------------------------------------------------------------------------------
402 Act/360 Balloon 0 0 120 117 360
403 30/360 Balloon 0 0 120 117 360
404 Act/360 Balloon 0 0 120 119 360
405 Act/360 Balloon 0 0 120 119 300
406 30/360 Fully Amortizing 0 0 120 119 120
- ---------------------------------------------------------------------------------------------------------------------------------
407 Act/360 Balloon 0 0 120 120 360
408 Act/360 Balloon 0 0 120 120 360
137 135 328
<CAPTION>
Remaining Underwritten
Control Amortization Origination Maturity Balloon Annual Net
No. Term (Mos.) Date or ARD Balance ($) Prepayment Provisions Debt Service ($) Cash Flow ($)
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
399 357 4/3/98 5/1/08 838,183 L(4),D(5.75),O(.25) 76,875 113,836
400 297 4/9/98 5/1/08 749,377 L(4),D(5.75),O(.25) 79,659 122,917
401 360 7/9/98 8/1/08 789,558 L(2),D(7.5),O(.5) 73,457 106,997
- -----------------------------------------------------------------------------------------------------------------------------------
402 357 4/30/98 5/1/08 791,970 L(4),D(5.75),O(.25) 74,262 100,739
403 357 4/14/98 5/1/08 755,387 L(5),D(4.5),O(.5) 71,700 93,881
404 359 6/24/98 7/1/08 726,190 L(4),D(5.75),O(.25) 67,002 104,293
405 299 6/10/98 7/1/08 631,882 L(4),D(5.75),O(.25) 68,562 93,052
406 119 6/29/98 7/1/08 - L(2.083),D(7.417),O(.5) 82,011 270,749
- -----------------------------------------------------------------------------------------------------------------------------------
407 360 7/9/98 8/1/08 429,103 L(2),D(7.5),O(.5) 39,923 67,701
408 360 7/9/98 8/1/08 377,615 L(2),D(7.5),O(.5) 35,132 55,345
<CAPTION>
Underwritten Cut-off Scheduled Sq. Ft, Units
Control NCF Appraised Appraisal Date Maturity or ARD Year Year Beds, Pads
No. DSCR (x) Value ($) Date LTV (%) Date LTV(%) Built Renovated or Rooms
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
399 1.48 1,200,000 3/3/98 79.8 69.9 1984 N/A 71 Units
400 1.54 1,400,000 1/26/98 66.6 53.5 1976 N/A 76,400 Sq Ft
401 1.46 1,150,000 4/27/98 80.0 68.7 1903 N/A 46 Units
- ------------------------------------------------------------------------------------------------------------------------------------
402 1.36 1,200,000 3/2/98 74.9 66.0 1980 N/A 15,150 Sq Ft
403 1.31 1,200,000 1/22/98 72.8 63.0 1967 1979 11,330 Sq Ft
404 1.56 1,200,000 1/2/98 69.1 60.5 1960s N/A 98 Pads
405 1.36 1,050,000 4/9/98 74.2 60.2 1926 1987 14,338 Sq Ft
406 3.30 3,900,000 5/11/98 15.3 0.0 1970 N/A 120 Units
- ------------------------------------------------------------------------------------------------------------------------------------
407 1.70 625,000 4/27/98 80.0 68.7 1915 N/A 25 Units
408 1.58 550,000 4/27/98 80.0 68.7 1915 N/A 20 Units
<CAPTION>
Cut-off
Sq. Ft, Unit Replacement Annual
Control Bed, Pad Occupancy Occupancy Ownership Reserve TI/LC
No. or Room ($) Percentage (%) Date Interest Deposit Deposit
=======================================================================================================
<S> <C> <C> <C> <C> <C> <C>
399 13,493.19 93.0 2/1/98 Fee Simple 18,105 -
400 12.20 93.0 1/31/98 Fee Simple 11,460 27,252
401 20,000.00 100.0 5/20/98 Fee Simple 11,500 -
- -------------------------------------------------------------------------------------------------------
402 59.29 89.8 2/16/98 Fee Simple 4,272 8,258
403 77.05 100.0 3/24/98 Fee Simple 5,664 6,000
404 8,464.27 95.9 12/15/97 Fee Simple 4,900 -
405 54.35 100.0 4/28/98 Fee Simple 2,868 -
406 4,970.42 93.0 6/26/98 Fee Simple - -
- -------------------------------------------------------------------------------------------------------
407 20,000.00 100.0 5/20/98 Fee Simple 7,692 -
408 22,000.00 100.0 5/20/98 Fee Simple 5,233 -
<CAPTION>
Largest Largest Tenant
Control Tenant Area Lease Exp. Control
No. Largest Tenant Name Leased (Sq. Ft.) Date No.
=====================================================================================
<S> <C> <C> <C> <C>
399 399
400 Alco 34,662 2/28/02 400
401 401
- -------------------------------------------------------------------------------------
402 Learning Tree 4,030 0 402
403 Ohio Vision Group 4,057 4/30/00 403
404 404
405 Currency Exchange 4,260 9/30/07 405
406 406
- -------------------------------------------------------------------------------------
407 407
408 408
</TABLE>
<PAGE>
GMAC Commercial Mortgage Securities, Inc. Mortgage Pass-Through Certificates
Series 1998-C2
<TABLE>
<CAPTION>
Original Remaining
Interest- Interest-
Control Only Period Only Period Amortization Cut-off Date
No. Property Name (months) (months) Type Balance ($)
=======================================================================================================================
<S> <C> <C> <C> <C> <C>
1 OPERS Factory Outlet Portfolio ARD 199,846,046.55
2 Arden 57 56 ARD 136,100,000.00
3 Boykin 23 21 ARD 130,000,000.00
4 South Towne Center and South Towne Marketplace 120 120 ARD 64,000,000.00
5 Grove Property Trust 120 118 Interest Only 63,000,000.00
6 The Bellevue Balloon 46,463,602.13
7 Citation Club Apartments Balloon 45,200,000.00
8 Ocean Towers Cooperative Apartments 7 7 Fully Amortizing 45,000,000.00
9 Village Apartments/Corners Apartments 0 0 Balloon 38,472,280.87
10 Gates of McLean Apartments 120 120 Interest Only 36,500,000.00
11 Uniprop - Jamaica Bay West ARD 30,000,000.00
12 D'Amato Portfolio Fully Amortizing 28,470,700.59
13 Crowne Plaza Hotel Balloon 26,950,988.90
14 Alternative Living Services, Inc. Balloon 25,000,000.00
15 Peak Medical of Montana, Inc. Balloon 24,642,721.94
16 Latigo at Silverado Ranch Apartments Balloon 23,023,618.93
17 El Monte Shopping Center Balloon 21,465,000.00
18 50 West 23rd Street 49 48 Balloon 21,000,000.00
19 150-56 Broadway Balloon 20,958,730.45
20 Copper Sands Apartments ARD 20,369,612.71
21 Uniprop - Pennwood Crossing ARD 19,000,000.00
22 Manzanita Gate Apartments Balloon 18,900,000.00
23 Livingston Retail Center Balloon 18,361,580.96
24 Wellington Apartments Balloon 18,221,009.38
25 Sinclair Road Distribution Center ARD 16,706,602.48
26 University Plaza Shopping Center Balloon 15,790,536.13
27 Uniprop - Boulder Meadows Balloon 15,000,000.00
28 Posada Vallarta Apartments Balloon 14,978,304.50
29 Brandywine - Laurelton Village Balloon 14,403,335.29
30 Hampton Plaza Healthcare Center Balloon 14,385,965.21
31 Beckstrand-Healthrider Building Balloon 14,290,137.55
32 Greenwood Inn ARD 13,939,591.71
33 Brandywine - Bey Lea Village Balloon 13,751,332.45
34 Westchester Shopping Center Balloon 13,500,000.00
35 Saratoga Apartments Balloon 12,969,889.76
36 Breckenridge Shopping Center Balloon 12,562,050.32
37 Waterloo Place Apartments Balloon 12,491,112.70
38 Brandywine-Whiting Health Care Center Balloon 12,487,349.58
39 Marlton Crossing Shopping Center Phase I 60 59 Amortizing 11,650,000.00
40 Residence Inn by Marriott Balloon 10,977,477.37
41 Cherokee Plaza Shopping Center Balloon 10,792,577.20
42 River Oaks Apartments Balloon 10,492,932.46
43 Brandywine - Meadowview Nursing Balloon 10,489,373.65
44 Sam's Wholesale Club Balloon 10,445,687.84
45 La Mesa Gateway Center Balloon 10,150,000.00
46 Simi Valley Business Center Balloon 9,261,079.45
47 ESAB Corporation Balloon 9,222,322.83
48 K-Mart (Maui, Hawaii) Step 9,220,000.00
49 Pontiac Place Balloon 8,700,000.00
50 Circuit City (Property Level) Fully Amortizing 8,436,431.98
51 The Hallmark Suites Hotel ARD 8,335,649.38
52 Yaohan Plaza Balloon 8,239,540.82
53 Campus Plaza Shopping Center Balloon 8,200,000.00
54 Heritage Vista Apartments Balloon 7,983,940.47
55 Harmon Meadow Plaza Balloon 7,800,000.00
56 Tab Warehouse Balloon 7,735,728.02
57 Executive Centre at Hooks Lane Balloon 7,700,000.00
58 New Harbour Mall Balloon 7,585,064.36
59 Dubuque Five Flags Holiday Inn ARD 7,584,785.36
60 Highland Manor Manufactured Homes ARD 7,500,000.00
61 Grand Summit Hotel ARD 7,492,091.85
62 Hartford Run Apartments Balloon 7,488,494.23
63 Courtyard By Marriott Balloon 7,474,244.37
64 Lynnhaven Nursing Center Balloon 6,833,465.64
65 Abbot Road Plaza Balloon 6,781,590.69
66 Fountains of Plantation Office Park Balloon 6,770,516.13
67 Cherry Hill Townhouses Balloon 6,745,766.79
68 Circuit City (Property Level) Fully Amortizing 6,710,798.25
69 Redford Park Apartments Balloon 6,600,000.00
70 Grand Plaza Balloon 6,596,058.98
71 Light Industrial Building (30 Pulaski) ARD 6,587,098.71
72 Circuit City (Property Level) Fully Amortizing 6,519,060.37
73 Sun Trust Building Balloon 6,430,493.04
74 Georgetown Plaza Shopping Center Balloon 6,386,497.41
75 Oaks of Westchase Apartments ARD 6,342,342.37
<CAPTION>
Balloon/
Control Monthly ARD Mortgage
No. Property Name P&I ($) Balance ARD Maturity Rate (%)
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1 OPERS Factory Outlet Portfolio 1,288,897.89 170,351,005 7/10/08 7/10/28 6.5900
2 Arden 775,045.39 124,441,148 4/16/08 4/16/28 6.7400
3 Boykin 910,536.57 110,251,602 6/2/08 6/2/23 6.9000
4 South Towne Center and South Towne Marketplace 357,429.63 64,000,000 8/10/08 8/10/33 6.6100
5 Grove Property Trust 345,975.00 63,000,000 6/1/08 6/1/33 6.5900
6 The Bellevue 329,903.29 39,115,070 7/1/08 7.3300
7 Citation Club Apartments 289,151.63 38,429,649 8/10/08 6.6160
8 Ocean Towers Cooperative Apartments 328,613.48 0 8/10/23 7.2700
9 Village Apartments/Corners Apartments 255,147.19 33,009,614 7/1/08 6.8600
10 Gates of McLean Apartments 191,016.67 36,500,000 8/10/08 6.2800
11 Uniprop - Jamaica Bay West 188,496.95 25,087,370 2/10/09 8/10/28 6.3500
12 D'Amato Portfolio 210,416.91 0 7/10/23 7.3800
13 Crowne Plaza Hotel 203,856.10 18,156,101 7/1/08 6.6600
14 Alternative Living Services, Inc. 178,009.15 19,705,141 8/1/08 6.9800
15 Peak Medical of Montana, Inc. 187,231.19 19,840,970 6/1/08 7.6800
16 Latigo at Silverado Ranch Apartments 153,475.47 19,777,969 7/1/08 6.9100
17 El Monte Shopping Center 142,822.37 18,421,575 8/1/08 6.9000
18 50 West 23rd Street 152,918.72 19,285,050 8/1/07 7.3300
19 150-56 Broadway 142,829.96 16,236,227 5/1/13 7.2200
20 Copper Sands Apartments 139,367.92 17,957,988 12/1/07 12/1/27 7.2170
21 Uniprop - Pennwood Crossing 119,381.40 15,888,668 2/10/09 8/10/28 6.3500
22 Manzanita Gate Apartments 128,666.76 14,113,313 8/10/13 7.1250
23 Livingston Retail Center 122,292.11 14,078,471 5/1/13 6.9900
24 Wellington Apartments 122,679.06 15,699,697 6/1/08 7.0000
25 Sinclair Road Distribution Center 116,889.12 14,793,961 4/1/08 4/1/28 7.4800
26 University Plaza Shopping Center 106,607.54 13,834,724 7/1/08 7.1400
27 Uniprop - Boulder Meadows 94,248.48 12,543,684 2/10/09 8/10/28 6.3500
28 Posada Vallarta Apartments 99,896.13 13,087,792 6/1/08 7.0100
29 Brandywine - Laurelton Village 107,210.58 11,515,799 7/1/08 7.4600
30 Hampton Plaza Healthcare Center 108,894.79 11,559,936 7/1/08 7.6500
31 Beckstrand-Healthrider Building 96,429.09 12,310,289 7/1/08 7.0300
32 Greenwood Inn 106,516.72 8,695,260 7/1/13 4/1/23 7.7200
33 Brandywine - Bey Lea Village 102,357.43 10,994,507 7/1/08 7.4600
34 Westchester Shopping Center 92,322.96 12,357,147 8/10/05 7.1700
35 Saratoga Apartments 86,997.66 7,472,785 5/1/18 6.9550
36 Breckenridge Shopping Center 87,216.26 10,912,063 4/1/08 7.2900
37 Waterloo Place Apartments 83,265.77 10,730,235 7/1/08 6.9100
38 Brandywine-Whiting Health Care Center 92,949.03 9,983,924 7/1/08 7.4600
39 Marlton Crossing Shopping Center Phase I 81,984.16 10,615,035 7/1/08 6.8500
40 Residence Inn by Marriott 81,862.30 8,958,146 6/1/08 7.5800
41 Cherokee Plaza Shopping Center 69,546.80 9,339,678 6/1/08 6.6800
42 River Oaks Apartments 71,489.42 9,059,074 7/1/08 7.1250
43 Brandywine - Meadowview Nursing 78,077.18 8,386,497 7/1/08 7.4600
44 Sam's Wholesale Club 93,048.42 148,908 3/1/13 6.5900
45 La Mesa Gateway Center 72,788.59 7,786,125 8/1/08 6.9900
46 Simi Valley Business Center 64,598.29 8,043,126 6/1/08 7.4600
47 ESAB Corporation 68,657.81 8,187,961 5/1/05 7.5500
48 K-Mart (Maui, Hawaii) Step* 4,453,411 8/1/13 7.1400
49 Pontiac Place 59,977.24 7,527,691 8/1/08 7.2500
50 Circuit City (Property Level) 69,886.67 0 12/1/18 7.9600
51 The Hallmark Suites Hotel 64,138.54 3,172,560 1/1/18 1/1/23 7.8750
52 Yaohan Plaza 57,911.33 7,297,346 6/1/08 7.5400
53 Campus Plaza Shopping Center 55,882.85 7,197,674 8/1/08 7.2400
54 Heritage Vista Apartments 53,978.50 7,005,134 5/1/08 7.1400
55 Harmon Meadow Plaza 56,300.96 6,173,924 8/10/08 7.1300
56 Tab Warehouse 53,977.01 6,842,394 5/1/08 7.4600
57 Executive Centre at Hooks Lane 52,006.32 6,742,998 8/1/08 7.1500
58 New Harbour Mall 51,690.84 6,668,779 5/1/08 7.2200
59 Dubuque Five Flags Holiday Inn 59,893.78 6,124,489 9/1/08 5/1/23 8.1250
60 Highland Manor Manufactured Homes 47,124.24 6,271,842 2/10/09 8/10/28 6.3500
61 Grand Summit Hotel 54,731.07 5,921,005 9/1/08 7/1/23 7.2500
62 Hartford Run Apartments 50,075.58 6,551,800 5/1/08 7.0300
63 Courtyard By Marriott 60,236.18 5,191,605 6/1/08 7.4600
64 Lynnhaven Nursing Center 52,181.86 4,326,178 7/1/13 7.7500
65 Abbot Road Plaza 48,280.78 6,316,398 7/1/05 7.6800
66 Fountains of Plantation Office Park 49,414.03 5,493,079 4/1/08 7.3100
67 Cherry Hill Townhouses 44,862.59 5,887,051 7/1/08 6.9900
68 Circuit City (Property Level) 55,591.67 0 12/1/18 7.9600
69 Redford Park Apartments 44,410.50 5,679,005 8/1/08 7.0100
70 Grand Plaza 44,576.85 5,780,574 7/1/08 7.1500
71 Light Industrial Building (30 Pulaski) 44,978.88 5,548,848 5/1/10 5/1/28 7.2400
72 Circuit City (Property Level) 54,003.33 0 12/1/18 7.9600
73 Sun Trust Building 44,557.16 5,583,402 4/1/08 7.2700
74 Georgetown Plaza Shopping Center 42,364.67 5,576,006 5/1/08 6.9500
75 Oaks of Westchase Apartments 43,618.54 5,894,621 1/1/05 1/1/28 7.2800
<CAPTION>
Original Remaining Scheduled
Amortization Term to ARD Remaining Cut-off Cut-off Maturity or
Control Term Seasoning or Maturity Lockout Date Date ARD Date
No. Property Name (months) (months) (months) Months DSCR (x) LTV (%) LTV (%)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 OPERS Factory Outlet Portfolio 360 1 119 23 2.31 48.6 41.4
2 Arden 300 1 117 24 2.19 51.4 47.0
3 Boykin 300 2 118 24 2.30 47.0 39.9
4 South Towne Center and South Towne Marketplace 0 0 120 24 2.05 61.1 61.1
5 Grove Property Trust 0 2 118 24 2.11 62.4 62.4
6 The Bellevue 324 1 119 47 1.35 71.4 60.1
7 Citation Club Apartments 360 0 120 24 1.28 80.0 68.0
8 Ocean Towers Cooperative Apartments 293 0 300 24 1.53 52.9 0.0
9 Village Apartments/Corners Apartments 360 1 119 24 1.25 79.7 68.4
10 Gates of McLean Apartments 0 0 120 0 2.48 48.2 48.2
11 Uniprop - Jamaica Bay West 360 0 126 24 1.84 60.0 50.2
12 D'Amato Portfolio 300 1 299 24 1.22 69.6 0.0
13 Crowne Plaza Hotel 240 1 119 47 1.87 55.6 37.4
14 Alternative Living Services, Inc. 300 0 120 24 1.68 74.6 58.8
15 Peak Medical of Montana, Inc. 300 2 118 24 1.48 85.9 69.2
16 Latigo at Silverado Ranch Apartments 360 1 119 23 1.31 74.6 64.2
17 El Monte Shopping Center 360 0 120 24 1.40 71.6 61.4
18 50 West 23rd Street 300 1 108 24 1.52 52.5 48.2
19 150-56 Broadway 360 3 177 81 1.52 67.6 52.4
20 Copper Sands Apartments 354 2 112 106 1.18 76.9 67.8
21 Uniprop - Pennwood Crossing 360 0 126 24 1.93 63.1 52.8
22 Manzanita Gate Apartments 360 0 180 24 1.56 65.0 48.5
23 Livingston Retail Center 360 3 177 81 1.38 78.8 60.4
24 Wellington Apartments 360 2 118 24 1.23 79.2 68.3
25 Sinclair Road Distribution Center 360 4 116 56 1.40 74.3 65.8
26 University Plaza Shopping Center 360 1 119 47 1.35 79.0 69.2
27 Uniprop - Boulder Meadows 360 0 126 24 1.85 65.5 54.8
28 Posada Vallarta Apartments 360 2 118 46 1.26 79.3 69.3
29 Brandywine - Laurelton Village 300 1 119 24 1.57 73.5 58.8
30 Hampton Plaza Healthcare Center 300 1 119 24 1.77 65.4 52.6
31 Beckstrand-Healthrider Building 360 1 119 24 1.59 66.3 57.2
32 Greenwood Inn 300 4 179 43 1.38 59.1 36.8
33 Brandywine - Bey Lea Village 300 1 119 24 1.63 79.0 63.2
34 Westchester Shopping Center 360 0 84 24 1.45 76.9 70.4
35 Saratoga Apartments 360 3 237 24 1.73 59.0 34.0
36 Breckenridge Shopping Center 360 4 116 0 1.34 72.2 62.7
37 Waterloo Place Apartments 360 1 119 24 1.29 76.4 65.6
38 Brandywine-Whiting Health Care Center 300 1 119 24 1.65 81.1 64.8
39 Marlton Crossing Shopping Center Phase I 300 1 119 24 1.44 63.5 57.9
40 Residence Inn by Marriott 300 2 118 24 1.48 71.3 58.2
41 Cherokee Plaza Shopping Center 360 2 118 46 1.79 62.8 54.3
42 River Oaks Apartments 360 1 119 24 1.24 79.8 68.9
43 Brandywine - Meadowview Nursing 300 1 119 24 1.12 80.7 64.5
44 Sam's Wholesale Club 208 31 175 0 1.03 77.4 1.1
45 La Mesa Gateway Center 288 0 120 0 1.15 86.8 66.6
46 Simi Valley Business Center 360 2 118 24 1.25 74.7 64.9
47 ESAB Corporation 300 3 81 33 1.26 73.2 65.0
48 K-Mart (Maui, Hawaii) 244 0 180 24 1.05 95.5 46.2
49 Pontiac Place 360 0 120 24 1.30 74.4 64.3
50 Circuit City (Property Level) 264 20 244 0 1.00 92.7 0.0
51 The Hallmark Suites Hotel 300 7 233 24 1.54 70.6 26.9
52 Yaohan Plaza 360 2 118 46 1.35 74.9 66.3
53 Campus Plaza Shopping Center 360 0 120 48 1.42 74.6 65.4
54 Heritage Vista Apartments 360 3 117 45 1.30 79.8 70.1
55 Harmon Meadow Plaza 300 0 120 25 1.30 62.4 49.4
56 Tab Warehouse 360 3 117 45 1.20 78.1 69.1
57 Executive Centre at Hooks Lane 360 0 120 29 1.27 74.8 65.5
58 New Harbour Mall 360 3 117 45 1.27 74.4 65.4
59 Dubuque Five Flags Holiday Inn 300 2 121 46 1.47 72.9 58.9
60 Highland Manor Manufactured Homes 360 0 126 24 1.85 65.8 55.0
61 Grand Summit Hotel 300 1 121 47 1.84 40.0 31.6
62 Hartford Run Apartments 360 3 117 45 1.44 79.8 69.9
63 Courtyard By Marriott 240 2 118 23 1.41 68.0 47.2
64 Lynnhaven Nursing Center 300 1 179 24 2.05 79.9 50.6
65 Abbot Road Plaza 360 1 83 47 1.33 74.9 69.8
66 Fountains of Plantation Office Park 300 4 116 44 1.35 78.7 63.9
67 Cherry Hill Townhouses 360 1 119 47 1.22 78.4 68.5
68 Circuit City (Property Level) 264 20 244 0 1.00 91.9 0.0
69 Redford Park Apartments 360 0 120 24 1.29 80.2 69.0
70 Grand Plaza 360 1 119 59 1.29 72.5 63.5
71 Light Industrial Building (30 Pulaski) 360 3 141 81 1.29 69.3 58.4
72 Circuit City (Property Level) 264 20 244 0 1.00 93.1 0.0
73 Sun Trust Building 360 4 116 24 1.57 69.5 60.4
74 Georgetown Plaza Shopping Center 360 3 117 45 1.30 73.8 64.5
75 Oaks of Westchase Apartments 360 7 77 41 1.30 79.3 73.7
</TABLE>
Annex A-2
A-2-1
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Interest- Interest-
Control Only Period Only Period Amortization Cut-off Date
No. Property Name (months) (months) Type Balance ($)
=======================================================================================================================
<S> <C> <C> <C> <C> <C>
76 Mountain View Child Care Center Balloon 6,193,832.64
77 Executive Center (Exec.Center-Loan Level) Balloon 6,186,591.76
78 Hamburg Plaza Balloon 5,996,902.19
79 Tamal Vista Shopping Center Balloon 5,996,038.91
80 One Forest Drive Balloon 5,989,252.03
81 Chesapeake Apartments Balloon 5,985,656.67
82 Uniprop - West Point ARD 5,750,000.00
83 Harwin Drive Office Building Balloon 5,750,000.00
84 Sunrise at Pinnacle Phase II Balloon 5,745,258.81
85 Sharon Hill Shopping Center Balloon 5,700,000.00
86 Midway Plaza Shopping Center Balloon 5,700,000.00
87 Shop 'N Save (Hannaford Brothers) Step 5,700,000.00
88 Northwood Village Shopping Center ARD 5,684,703.86
89 University Courtyard Apartments Balloon 5,664,415.47
90 Stratford House Fully Amortizing 5,630,731.19
91 Princeton Court Apartments Balloon 5,600,000.00
92 Transworld Financial Center Balloon 5,592,681.16
93 Circuit City Step 5,544,235.00
94 Garden Lake MHP Balloon 5,496,897.00
95 7277 World Communications Drive (Sitel Corp.) Balloon 5,386,498.62
96 Uniprop - Saginaw Villas ARD 5,300,000.00
97 Indian Run Apartments Balloon 5,245,206.24
98 Circuit City (Property Level) Fully Amortizing 5,186,810.11
99 Circuit City (Property Level) Fully Amortizing 5,176,901.20
100 Hampton Inn Greenville/I85 Balloon 5,134,089.83
101 Ramsgate Apartments Balloon 5,092,103.82
102 Townsquare Shop Ctr Balloon 4,997,304.43
103 Desert Sky Apartments Balloon 4,992,393.33
104 Brookfield Commons Office Bldg. Balloon 4,989,553.76
105 Quality Center Shopping Center 24 23 Amortizing 4,950,000.00
106 Hickory Manor Apartments Balloon 4,946,138.92
107 45085 University Drive 24 17 ARD 4,900,000.00
108 Executive Center Balloon 4,883,689.97
109 Napa Valley Gateway Balloon 4,800,000.00
110 Circuit City (Property Level) Fully Amortizing 4,793,426.64
111 Riverdale Village Apartment Balloon 4,792,216.16
112 Courtyard at Camino Real Balloon 4,743,713.53
113 Tomball Nursing Center Balloon 4,715,490.91
114 867 Boylston Street Balloon 4,691,392.22
115 Central Point Shopping Center Balloon 4,688,790.91
116 Santa Fe Apartments Balloon 4,678,877.68
117 Grandview Gardens Balloon 4,677,194.39
118 Tanglewood Estates Balloon 4,669,991.90
119 Florex Industrial Properties Balloon 4,659,844.73
120 Builders Square Fully Amortizing 4,624,417.41
121 Manitoba Apartments Balloon 4,609,873.42
122 Circuit City (Property Level) Fully Amortizing 4,601,689.95
123 MIE Corporate Center Balloon 4,600,000.00
124 6301 Hazeltine National Drive (Lake Point IV) Balloon 4,593,378.95
125 Brentwood Forest Apartments Balloon 4,571,836.65
126 Overlake Apartments Balloon 4,571,550.18
127 Oxbridge Square Shopping Center Fully Amortizing 4,512,267.26
128 Uniprop - Country Meadows ARD 4,500,000.00
129 Uniprop - Sierra Vista ARD 4,500,000.00
130 South Mountain Shopping Center Fully Amortizing 4,494,787.59
131 Stanford Court Apartments Balloon 4,490,234.13
132 Extra Space Center (Loan Level) Balloon 4,345,790.31
133 The Parkview Balloon 4,295,098.38
134 Beachwood Apartments Balloon 4,277,873.76
135 Woodlyn Shopping Center (East) a/k/a Hechinger Plaza Balloon 4,272,359.38
136 Country Meadows Mobile Home Park Balloon 4,234,444.63
137 Brookside ALF Balloon 4,230,997.70
138 801 Penn. Ave. Dc Balloon 4,197,468.66
139 Tartan Place Apartments Balloon 4,197,326.00
140 Green Gate Office Park Balloon 4,192,137.41
141 9939 Norwalk Blvd & SW Corner of Geary Ave. ARD 4,159,556.61
142 Village Square Mall Balloon 4,144,792.20
143 Walgreen Balloon 4,110,711.25
144 Ramona Plaza Balloon 4,097,452.01
145 500 Building Balloon 4,095,889.99
146 Ten Oaks Retirement Community(TORCH) Balloon 4,095,326.36
147 Ramada Inn Newport ARD 4,000,000.00
148 Promontory Point Apartments Balloon 3,991,756.24
149 Paramount Plaza Balloon 3,982,233.27
150 Preferred Freezer Warehouse Fully Amortizing 3,964,918.08
151 Vroman's Bookstore Balloon 3,945,629.89
152 West Lake Self Storage Balloon 3,909,753.40
<CAPTION>
Balloon/
Control Monthly ARD Mortgage
No. Property Name P&I ($) Balance ARD Maturity Rate (%)
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
76 Mountain View Child Care Center 49,257.36 5,050,051 7/1/08 8.3400
77 Executive Center (Exec.Center-Loan Level) 44,973.93 5,005,162 6/1/08 7.2900
78 Hamburg Plaza 42,364.48 5,578,489 7/1/05 7.6000
79 Tamal Vista Shopping Center 41,161.09 5,185,575 7/1/08 7.2000
80 One Forest Drive 42,199.66 5,310,701 5/1/08 7.5600
81 Chesapeake Apartments 39,560.13 5,138,158 5/1/08 6.8100
82 Uniprop - West Point 36,128.58 4,808,413 2/10/09 8/10/28 6.3500
83 Harwin Drive Office Building 39,958.50 5,275,880 8/1/05 7.3300
84 Sunrise at Pinnacle Phase II 38,139.11 4,930,725 7/1/08 6.9700
85 Sharon Hill Shopping Center 38,628.03 4,912,644 8/1/08 7.0800
86 Midway Plaza Shopping Center 42,078.57 4,542,834 8/1/08 7.3800
87 Shop 'N Save (Hannaford Brothers) Step* 0 11/1/17 7.0500
88 Northwood Village Shopping Center 39,232.61 5,016,472 4/1/08 4/1/28 7.3400
89 University Courtyard Apartments 38,709.09 4,986,014 4/1/08 7.2400
90 Stratford House 46,985.01 5,912 6/1/18 7.8100
91 Princeton Court Apartments 37,184.61 4,803,703 8/1/08 6.8800
92 Transworld Financial Center 38,849.71 4,938,372 6/1/08 7.4200
93 Circuit City Step* 0 6/1/18 6.9180
94 Garden Lake MHP 37,818.60 4,839,666 7/11/08 7/11/28 7.3300
95 7277 World Communications Drive (Sitel Corp.) 38,202.29 4,595,166 4/1/10 7.6200
96 Uniprop - Saginaw Villas 33,301.13 4,432,102 2/10/09 8/10/28 6.3500
97 Indian Run Apartments 35,526.40 4,606,532 4/1/08 7.1500
98 Circuit City (Property Level) 42,885.00 0 12/1/18 7.9600
99 Circuit City (Property Level) 42,885.00 0 12/1/18 7.9600
100 Hampton Inn Greenville/I85 37,690.33 4,170,930 5/1/08 7.3900
101 Ramsgate Apartments 34,720.41 4,400,119 6/1/08 7.1250
102 Townsquare Shop Ctr 34,858.07 4,415,421 7/1/08 7.4700
103 Desert Sky Apartments 34,332.38 4,322,301 6/1/08 7.2100
104 Brookfield Commons Office Bldg. 35,063.85 4,593,804 5/1/05 7.4200
105 Quality Center Shopping Center 35,704.67 4,107,228 7/1/10 7.4000
106 Hickory Manor Apartments 33,767.33 3,699,230 7/1/13 7.2500
107 45085 University Drive 33,626.28 4,463,535 1/1/08 1/1/30 7.3100
108 Executive Center 33,459.88 4,304,200 3/1/08 7.2600
109 Napa Valley Gateway 32,777.02 4,216,100 7/11/08 7.2600
110 Circuit City (Property Level) 39,708.33 0 12/1/18 7.9600
111 Riverdale Village Apartment 32,160.49 4,125,753 6/1/08 7.0700
112 Courtyard at Camino Real 32,790.89 4,183,469 6/1/08 7.3700
113 Tomball Nursing Center 36,008.53 2,985,318 7/1/13 7.7500
114 867 Boylston Street 32,798.74 4,151,681 5/1/08 7.4800
115 Central Point Shopping Center 31,855.33 4,050,563 5/1/08 7.1850
116 Santa Fe Apartments 37,112.15 4,471,128 7/1/02 8.5600
117 Grandview Gardens 31,338.01 3,611,415 7/1/13 7.0800
118 Tanglewood Estates 34,129.46 3,784,997 6/1/08 6/1/23 7.3500
119 Florex Industrial Properties 34,887.66 3,737,998 5/1/08 7.5000
120 Builders Square 39,513.00 0 1/1/18 8.1250
121 Manitoba Apartments 32,299.17 4,094,455 9/1/07 7.4379
122 Circuit City (Property Level) 38,120.00 0 12/1/18 7.9600
123 MIE Corporate Center 30,480.44 4,008,142 8/1/08 6.9600
124 6301 Hazeltine National Drive (Lake Point IV) 30,696.65 4,236,263 6/1/05 7.0300
125 Brentwood Forest Apartments 30,819.22 3,937,507 7/1/08 7.0200
126 Overlake Apartments 32,136.77 4,068,316 9/1/07 7.4700
127 Oxbridge Square Shopping Center 33,090.64 0 7/1/23 7.4000
128 Uniprop - Country Meadows 28,274.54 3,763,106 2/10/09 8/10/28 6.3500
129 Uniprop - Sierra Vista 28,274.54 3,763,106 2/10/09 8/10/28 6.3500
130 South Mountain Shopping Center 32,962.45 0 7/1/23 7.4000
131 Stanford Court Apartments 31,026.92 3,893,626 5/1/08 7.2500
132 Extra Space Center (Loan Level) 31,666.65 3,516,474 7/1/08 7.3300
133 The Parkview 31,776.62 3,427,853 7/1/08 7.5000
134 Beachwood Apartments 29,362.75 3,974,659 1/1/05 7.2600
135 Woodlyn Shopping Center (East) a/k/a Hechinger Plaza 28,556.62 3,733,415 7/1/08 7.0400
136 Country Meadows Mobile Home Park 29,385.83 3,738,105 6/1/08 7.4100
137 Brookside ALF 29,252.38 3,737,607 2/1/08 7.3400
138 801 Penn. Ave. Dc 28,282.01 3,675,656 7/1/08 7.1200
139 Tartan Place Apartments 27,773.67 3,658,171 7/1/08 6.9400
140 Green Gate Office Park 29,079.95 3,702,487 5/1/08 7.4000
141 9939 Norwalk Blvd & SW Corner of Geary Ave. 28,894.47 3,672,914 6/1/08 6/1/28 7.4200
142 Village Square Mall 29,245.08 3,674,461 6/1/08 7.5800
143 Walgreen 29,853.29 1,260,001 7/1/18 7.1300
144 Ramona Plaza 27,332.49 3,421,787 7/1/10 7.0200
145 500 Building 29,424.09 3,298,168 7/1/08 7.1700
146 Ten Oaks Retirement Community(TORCH) 30,298.64 3,268,418 7/1/08 7.5000
147 Ramada Inn Newport 30,851.02 3,201,594 11/1/08 8/1/23 7.8750
148 Promontory Point Apartments 26,719.64 3,493,356 5/1/08 7.0400
149 Paramount Plaza 28,732.13 3,218,382 4/1/08 7.1800
150 Preferred Freezer Warehouse 37,684.75 0 5/1/13 7.6500
151 Vroman's Bookstore 28,179.83 2,725,209 7/1/11 7.0000
152 West Lake Self Storage 26,893.33 3,443,650 6/1/08 7.3200
<CAPTION>
Original Remaining Scheduled
Amortization Term to ARD Remaining Cut-off Cut-off Maturity or
Control Term Seasoning or Maturity Lockout Date Date ARD Date
No. Property Name (months) (months) (months) Months DSCR (x) LTV (%) LTV (%)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
76 Mountain View Child Care Center 300 1 119 24 1.47 52.9 43.2
77 Executive Center (Exec.Center-Loan Level) 300 2 118 46 1.42 74.6 60.4
78 Hamburg Plaza 360 1 83 47 1.40 74.5 69.3
79 Tamal Vista Shopping Center 360 1 119 24 1.43 64.5 55.8
80 One Forest Drive 360 3 117 45 1.27 74.9 66.4
81 Chesapeake Apartments 360 3 117 24 2.14 45.0 38.6
82 Uniprop - West Point 360 0 126 24 1.71 66.1 55.3
83 Harwin Drive Office Building 360 0 84 24 1.29 67.3 58.3
84 Sunrise at Pinnacle Phase II 360 1 119 0 1.34 79.2 68.0
85 Sharon Hill Shopping Center 360 0 120 24 1.25 73.6 63.5
86 Midway Plaza Shopping Center 300 0 120 24 1.25 67.1 53.5
87 Shop 'N Save (Hannaford Brothers) 231 0 231 120 1.08 83.8 0.0
88 Northwood Village Shopping Center 360 4 116 32 1.45 72.9 64.3
89 University Courtyard Apartments 360 4 116 44 1.35 79.8 70.2
90 Stratford House 241 2 238 24 1.48 79.3 0.1
91 Princeton Court Apartments 360 0 120 24 1.30 80.0 68.6
92 Transworld Financial Center 360 2 118 46 1.36 64.3 56.8
93 Circuit City 240 2 238 0 1.04 106.6 0.0
94 Garden Lake MHP 360 1 119 24 1.34 78.5 69.1
95 7277 World Communications Drive (Sitel Corp.) 360 4 140 44 1.29 74.8 63.8
96 Uniprop - Saginaw Villas 360 0 126 24 1.50 66.3 55.4
97 Indian Run Apartments 360 4 116 32 1.27 78.3 68.8
98 Circuit City (Property Level) 264 20 244 0 1.00 93.5 0.0
99 Circuit City (Property Level) 264 20 244 0 1.00 94.1 0.0
100 Hampton Inn Greenville/I85 300 3 117 45 1.56 74.4 60.5
101 Ramsgate Apartments 360 2 118 0 1.37 74.7 64.5
102 Townsquare Shop Ctr 360 1 119 47 1.34 72.4 64.0
103 Desert Sky Apartments 360 2 118 0 1.37 75.1 65.1
104 Brookfield Commons Office Bldg. 360 3 81 0 1.29 74.5 68.6
105 Quality Center Shopping Center 324 1 143 24 1.64 75.7 58.9
106 Hickory Manor Apartments 360 1 179 24 1.22 77.0 57.6
107 45085 University Drive 360 7 113 41 1.77 49.0 44.6
108 Executive Center 360 5 115 43 1.31 71.3 62.8
109 Napa Valley Gateway 360 1 119 25 1.24 73.6 64.7
110 Circuit City (Property Level) 264 20 244 0 1.00 94.0 0.0
111 Riverdale Village Apartment 360 2 118 23 1.75 62.2 53.6
112 Courtyard at Camino Real 360 2 118 46 1.32 74.1 65.4
113 Tomball Nursing Center 300 1 179 24 1.68 79.9 50.6
114 867 Boylston Street 360 3 117 45 1.26 73.3 64.9
115 Central Point Shopping Center 360 3 117 57 1.39 64.2 55.5
116 Santa Fe Apartments 360 37 47 0 1.22 67.8 64.8
117 Grandview Gardens 362 1 179 35 1.34 79.3 61.2
118 Tanglewood Estates 300 2 118 36 1.34 79.8 64.7
119 Florex Industrial Properties 300 3 117 24 1.60 61.9 49.7
120 Builders Square 288 55 233 0 1.31 74.1 0.0
121 Manitoba Apartments 353 4 109 25 1.34 79.5 70.6
122 Circuit City (Property Level) 264 20 244 0 1.00 92.0 0.0
123 MIE Corporate Center 360 0 120 48 1.42 80.0 69.7
124 6301 Hazeltine National Drive (Lake Point IV) 360 2 82 34 1.30 74.1 68.3
125 Brentwood Forest Apartments 360 1 119 24 1.46 75.0 64.6
126 Overlake Apartments 351 2 109 25 1.26 78.8 70.1
127 Oxbridge Square Shopping Center 300 1 299 119 1.83 48.0 0.0
128 Uniprop - Country Meadows 360 0 126 24 1.90 67.7 56.6
129 Uniprop - Sierra Vista 360 0 126 24 1.76 66.2 55.3
130 South Mountain Shopping Center 300 1 299 143 1.29 74.9 0.0
131 Stanford Court Apartments 360 3 117 24 1.28 78.8 68.3
132 Extra Space Center (Loan Level) 300 1 119 47 1.38 66.1 53.4
133 The Parkview 300 1 119 0 1.43 62.3 49.7
134 Beachwood Apartments 360 7 77 29 1.33 78.8 73.2
135 Woodlyn Shopping Center (East)
a/k/a Hechinger Plaza 360 1 119 47 1.36 75.0 65.5
136 Country Meadows Mobile Home Park 360 2 118 46 1.35 79.9 70.5
137 Brookside ALF 360 6 114 54 1.37 66.1 58.4
138 801 Penn. Ave. Dc 360 1 119 47 1.37 79.2 69.4
139 Tartan Place Apartments 360 1 119 47 1.33 79.2 69.0
140 Green Gate Office Park 360 3 117 45 1.36 69.9 61.7
141 9939 Norwalk Blvd & SW Corner of Geary Ave. 360 2 118 46 1.31 70.7 62.5
142 Village Square Mall 360 2 118 46 1.27 74.0 65.6
143 Walgreen 289 1 239 119 1.02 95.2 29.2
144 Ramona Plaza 360 1 143 47 1.33 74.5 62.2
145 500 Building 300 1 119 47 1.32 74.5 60.0
146 Ten Oaks Retirement Community(TORCH) 300 1 119 0 1.41 58.9 47.0
147 Ramada Inn Newport 300 0 123 48 1.55 64.5 51.6
148 Promontory Point Apartments 360 3 117 45 1.94 47.0 41.1
149 Paramount Plaza 300 4 116 44 1.40 73.8 59.6
150 Preferred Freezer Warehouse 180 3 177 0 1.35 56.6 0.0
151 Vroman's Bookstore 300 1 155 24 1.57 64.7 44.7
152 West Lake Self Storage 360 2 118 58 1.21 76.8 67.7
</TABLE>
A-2-2
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Interest- Interest-
Control Only Period Only Period Amortization Cut-off Date
No. Property Name (months) (months) Type Balance ($)
=======================================================================================================================
<S> <C> <C> <C> <C> <C>
153 Winterbrook Apartments Balloon 3,903,916.50
154 HomeBase Home Improvement Store Balloon 3,889,403.28
155 Lakeside Downs Apartments Balloon 3,837,562.53
156 Eckerd San Antonio Step 3,823,668.87
157 Strattford Lakes Apartments ARD 3,788,162.94
158 Concord Center Balloon 3,745,123.65
159 Oak Hills Balloon 3,742,085.59
160 Kimberly Woods Apartments Balloon 3,740,000.00
161 110 Fulton Street-Corporate Apartments Balloon 3,696,553.44
162 Plaza Linda Vista Balloon 3,694,853.67
163 Westridge Plaza Shopping Center (Ames/Hyvee) Fully Amortizing 3,684,611.46
164 Walgreens Fully Amortizing 3,660,686.48
165 Park Plaza II Balloon 3,600,000.00
166 Parkwild Apartments Balloon 3,597,049.11
167 Martinez Self Storage Balloon 3,596,638.73
168 Hemet Plaza Shopping Center Balloon 3,595,187.57
169 Congress Square Balloon 3,593,406.80
170 1111 South Willow Street Balloon 3,588,272.22
171 Walgreens - Richmond Balloon 3,547,600.00
172 Orangetree Plaza Shopping Center Balloon 3,501,491.15
173 Columbia Court Apartments Balloon 3,500,000.00
174 1200 High Ridge Road Balloon 3,497,649.69
175 Flint Hill Pointe Apartments Balloon 3,495,367.87
176 Waterside 1 Apartments Balloon 3,495,297.84
177 Doctors Professional Building Balloon 3,491,891.28
178 1500 Gateway Plaza Balloon 3,489,358.25
179 Oasis Water Park Fully Amortizing 3,450,000.00
180 Indian Valley Shopping Center Balloon 3,442,020.74
181 Circuit City (Property Level) Fully Amortizing 3,403,333.59
182 The Cedar Village Apartments Balloon 3,400,000.00
183 401 Griffin Brook Drive Balloon 3,365,784.21
184 Mulberry Station Apartments Balloon 3,344,914.04
185 Oak Hollow Apartments Balloon 3,293,601.03
186 355-367 Research Parkway Balloon 3,289,825.38
187 Walgreen (Dallas) Balloon 3,277,669.64
188 Arbor Shopping Center Balloon 3,195,870.31
189 Waterford Condominiums Balloon 3,193,761.57
190 Walgreens Drug Store (Council Bluffs, IA.) Fully Amortizing 3,193,495.16
191 Bayway Shopping Center Balloon 3,191,283.69
192 Colony Plaza Shopping Center Balloon 3,185,596.26
193 Rolling Oaks Plaza Balloon 3,167,863.06
194 170 Meeting Street Balloon 3,145,736.31
195 Dracut Village Shopping Center Balloon 3,143,439.20
196 Villa Cezanne Apartments Balloon 3,100,000.00
197 Uniprop - Camelot Villa ARD 3,100,000.00
198 Office/Laboratory Industrial Facility Balloon 3,095,793.55
199 Hilltop Plaza Balloon 3,093,858.94
200 101 Park Avenue Balloon 3,083,533.59
201 Skyline Manufactured Home Community Balloon 3,000,000.00
202 Castle Apartments Fully Amortizing 3,000,000.00
203 Sono Square Balloon 2,996,069.32
204 Empire Inn - Best Western Balloon 2,995,038.20
205 Montvale Place Balloon 2,994,291.54
206 251-57 West 45th Street/254 West 46th Street Fully Amortizing 2,990,835.79
207 Fixture World Facility Balloon 2,945,862.70
208 K Mart Fully Amortizing 2,930,301.95
209 Jeremy Apartments Balloon 2,900,000.00
210 119th Plaza Shopping Center Balloon 2,900,000.00
211 Riverwood Village Shopping Center Balloon 2,894,376.66
212 Valencia Autoplex Balloon 2,894,070.06
213 Grand View Center Balloon 2,874,069.40
214 747 Chestnut Ridge Road Balloon 2,846,321.99
215 Perimeter Park Balloon 2,846,045.68
216 Holiday Inn Sturbridge Balloon 2,840,127.20
217 University Village East Balloon 2,800,000.00
218 Cannon Park Warehouse Balloon 2,798,234.24
219 939-945 Fourth Avenue Balloon 2,798,127.42
220 11312 Westheimer Shopping Center Balloon 2,786,099.09
221 Circuit City (Property Level) Fully Amortizing 2,780,187.28
222 Greenfields Retirement Community Balloon 2,747,178.39
223 3700 & 3800 Classen Office Buildings Balloon 2,742,546.49
224 Algonquin Apartments Balloon 2,741,298.50
225 Westgate Service Balloon 2,698,525.21
226 First Southern Bank Building Balloon 2,698,240.53
227 Comfort Inn - Warner Robins Balloon 2,697,456.22
228 Greenbriar Apartments Balloon 2,696,714.90
229 Ridge Manor Apartments Balloon 2,694,205.40
<CAPTION>
Balloon/
Control Monthly ARD Mortgage
No. Property Name P&I ($) Balance ARD Maturity Rate (%)
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
153 Winterbrook Apartments 26,105.50 3,415,597 5/1/08 7.0300
154 HomeBase Home Improvement Store 26,710.77 3,706,658 4/1/03 7.2900
155 Lakeside Downs Apartments 25,418.80 3,345,508 7/1/08 6.9500
156 Eckerd San Antonio Step* 1,422,761 3/1/18 7.2100
157 Strattford Lakes Apartments 26,284.51 2,961,741 3/1/13 3/1/28 7.3900
158 Concord Center 26,066.65 3,308,624 6/1/08 7.4400
159 Oak Hills 27,517.33 3,039,285 6/1/08 7.4200
160 Kimberly Woods Apartments 24,529.17 3,198,911 8/10/08 6.7600
161 110 Fulton Street-Corporate Apartments 28,537.19 2,987,775 7/1/08 7.8750
162 Plaza Linda Vista 25,040.07 3,241,931 6/1/08 7.1700
163 Westridge Plaza Shopping Center (Ames/Hyvee) 28,007.05 0 5/1/21 7.4300
164 Walgreens 28,253.85 0 4/1/18 6.8400
165 Park Plaza II 24,569.88 3,107,767 8/1/08 7.1500
166 Parkwild Apartments 23,950.89 3,089,246 7/1/08 7.0000
167 Martinez Self Storage 26,580.27 2,924,309 7/1/08 7.4900
168 Hemet Plaza Shopping Center 24,753.99 3,167,387 6/1/08 7.3300
169 Congress Square 25,122.44 3,180,011 5/1/08 7.4800
170 1111 South Willow Street 25,720.30 2,891,581 5/1/08 7.1200
171 Walgreens - Richmond 25,940.17 1,298,244 8/1/18 7.3800
172 Orangetree Plaza Shopping Center 28,419.27 3,158,659 5/1/07 9.0000
173 Columbia Court Apartments 22,955.10 2,999,131 7/10/08 6.7600
174 1200 High Ridge Road 22,724.20 3,033,699 7/1/08 6.7600
175 Flint Hill Pointe Apartments 24,161.70 2,723,333 6/1/13 7.3700
176 Waterside 1 Apartments 24,018.77 3,077,824 6/1/08 7.3100
177 Doctors Professional Building 25,538.91 2,779,560 6/1/08 7.2500
178 1500 Gateway Plaza 25,796.43 3,093,337 5/1/05 7.4700
179 Oasis Water Park 41,839.79 39,510 8/1/08 7.9900
180 Indian Valley Shopping Center 23,746.05 2,983,779 5/1/08 7.3400
181 Circuit City (Property Level) 28,192.92 0 12/1/18 7.9600
182 The Cedar Village Apartments 22,645.87 2,918,625 8/1/08 6.9100
183 401 Griffin Brook Drive 23,069.25 2,964,938 4/1/08 7.2700
184 Mulberry Station Apartments 23,025.82 2,896,604 6/1/08 7.2200
185 Oak Hollow Apartments 22,556.60 2,899,408 5/1/08 7.2700
186 355-367 Research Parkway 24,172.46 2,673,446 5/1/08 7.4000
187 Walgreen (Dallas) 24,749.45 820,389 7/1/17 7.1900
188 Arbor Shopping Center 22,309.16 2,825,504 6/1/08 7.4700
189 Waterford Condominiums 21,829.64 2,810,093 5/1/08 7.2500
190 Walgreens Drug Store (Council Bluffs, IA.) 24,931.51 0 1/1/18 6.9100
191 Bayway Shopping Center 21,894.79 2,811,927 4/1/08 7.2800
192 Colony Plaza Shopping Center 22,470.04 2,829,827 1/1/08 7.5400
193 Rolling Oaks Plaza 22,132.72 2,755,179 6/1/08 7.3750
194 170 Meeting Street 21,552.69 2,767,903 6/1/08 7.2800
195 Dracut Village Shopping Center 23,257.74 2,045,162 6/1/13 7.4900
196 Villa Cezanne Apartments 20,017.60 2,641,754 8/1/08 6.6100
197 Uniprop - Camelot Villa 19,478.02 2,592,361 2/10/09 8/10/28 6.3500
198 Office/Laboratory Industrial Facility 21,189.53 2,723,267 6/1/08 7.2700
199 Hilltop Plaza 21,021.45 2,718,038 5/1/08 7.1900
200 101 Park Avenue 22,567.04 2,506,174 3/1/08 7.3300
201 Skyline Manufactured Home Community 18,849.70 2,508,736 2/10/09 8/10/28 6.3500
202 Castle Apartments 23,258.97 0 8/1/18 7.0000
203 Sono Square 20,791.86 2,644,886 6/1/08 7.4100
204 Empire Inn - Best Western 24,481.13 2,523,704 5/11/08 5/11/23 8.6600
205 Montvale Place 20,648.74 2,640,579 5/1/08 7.3400
206 251-57 West 45th Street/254 West 46th Street 27,589.21 0 7/1/13 7.3700
207 Fixture World Facility 25,247.15 2,103,907 7/1/08 7/1/18 8.3100
208 K Mart 30,393.88 0 5/1/14 9.7500
209 Jeremy Apartments 19,394.74 2,491,785 8/1/08 6.9500
210 119th Plaza Shopping Center 21,065.22 2,299,895 8/1/08 7.2000
211 Riverwood Village Shopping Center 19,822.47 2,547,964 5/1/08 7.2700
212 Valencia Autoplex 19,430.30 2,672,748 5/1/05 7.0700
213 Grand View Center 21,376.70 2,343,306 6/11/08 7/11/28 7.5500
214 747 Chestnut Ridge Road 19,869.10 2,516,464 6/1/08 7.4700
215 Perimeter Park 19,306.90 2,497,813 6/1/08 7.1800
216 Holiday Inn Sturbridge 21,807.61 2,340,197 6/1/08 7.9200
217 University Village East 19,338.90 2,423,522 8/1/08 7.3750
218 Cannon Park Warehouse 19,547.70 2,570,833 7/1/05 7.3750
219 939-945 Fourth Avenue 19,112.02 2,417,151 7/1/08 7.1500
220 11312 Westheimer Shopping Center 19,424.85 2,467,827 1/1/08 7.4200
221 Circuit City (Property Level) 23,030.83 0 12/1/18 7.9600
222 Greenfields Retirement Community 20,321.54 2,192,310 7/1/08 7.3900
223 3700 & 3800 Classen Office Buildings 18,853.20 2,417,744 4/1/08 7.3000
224 Algonquin Apartments 18,580.58 2,368,469 4/1/08 7.0500
225 Westgate Service 18,749.54 2,503,415 7/1/05 7.4300
226 First Southern Bank Building 18,615.72 2,336,178 7/10/08 7.2500
227 Comfort Inn - Warner Robins 19,865.03 2,190,592 7/1/08 7.4500
228 Greenbriar Apartments 19,249.92 1,954,005 12/1/15 7.7000
229 Ridge Manor Apartments 18,709.56 2,338,831 5/1/08 7.3000
<CAPTION>
Original Remaining Scheduled
Amortization Term to ARD Remaining Cut-off Cut-off Maturity or
Control Term Seasoning or Maturity Lockout Date Date ARD Date
No. Property Name (months) (months) (months) Months DSCR (x) LTV (%) LTV (%)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
153 Winterbrook Apartments 360 3 117 45 1.28 79.8 69.9
154 HomeBase Home Improvement Store 360 4 56 20 1.31 69.5 66.2
155 Lakeside Downs Apartments 360 1 119 47 1.31 80.0 69.7
156 Eckerd San Antonio 293 2 235 94 1.00 99.8 37.2
157 Strattford Lakes Apartments 359 3 175 45 1.19 84.2 65.8
158 Concord Center 360 2 118 46 1.28 74.9 66.2
159 Oak Hills 300 2 118 46 1.41 74.8 60.8
160 Kimberly Woods Apartments 360 0 120 24 1.32 76.3 65.3
161 110 Fulton Street-Corporate Apartments 300 1 119 24 1.24 79.5 64.3
162 Plaza Linda Vista 360 2 118 46 1.34 67.2 58.9
163 Westridge Plaza Shopping Center (Ames/Hyvee) 276 3 273 81 1.27 76.8 0.0
164 Walgreens 239 3 236 93 1.02 98.9 0.0
165 Park Plaza II 360 0 120 24 1.59 75.0 64.8
166 Parkwild Apartments 360 1 119 0 1.32 79.9 68.7
167 Martinez Self Storage 300 1 119 47 1.38 80.3 65.3
168 Hemet Plaza Shopping Center 360 2 118 46 1.32 73.4 64.6
169 Congress Square 360 3 117 45 1.47 74.9 66.3
170 1111 South Willow Street 300 3 117 57 1.65 57.2 46.1
171 Walgreens - Richmond 300 0 240 120 1.00 98.5 36.1
172 Orangetree Plaza Shopping Center 360 15 105 33 1.20 64.8 58.5
173 Columbia Court Apartments 360 0 119 24 1.30 72.9 62.5
174 1200 High Ridge Road 360 1 119 47 1.64 61.4 53.2
175 Flint Hill Pointe Apartments 360 2 178 82 1.31 74.5 58.1
176 Waterside 1 Apartments 360 2 118 46 1.29 79.4 70.0
177 Doctors Professional Building 300 2 118 24 3.20 38.8 30.9
178 1500 Gateway Plaza 300 3 81 45 1.39 73.5 65.1
179 Oasis Water Park 120 0 120 0 1.41 43.6 0.5
180 Indian Valley Shopping Center 360 3 117 57 1.30 72.5 62.8
181 Circuit City (Property Level) 264 20 244 0 1.00 92.0 0.0
182 The Cedar Village Apartments 360 0 120 24 1.36 55.5 47.7
183 401 Griffin Brook Drive 360 4 116 44 1.32 73.2 64.5
184 Mulberry Station Apartments 360 2 118 24 1.25 79.6 69.0
185 Oak Hollow Apartments 360 3 117 45 1.31 69.7 61.4
186 355-367 Research Parkway 300 3 117 45 1.40 71.5 58.1
187 Walgreen (Dallas) 267 2 227 94 1.02 93.7 23.4
188 Arbor Shopping Center 360 2 118 46 1.33 67.3 59.5
189 Waterford Condominiums 360 3 117 45 1.34 77.3 68.0
190 Walgreens Drug Store (Council Bluffs, IA.) 234 1 233 24 1.03 91.2 0.0
191 Bayway Shopping Center 360 4 116 44 1.40 74.2 65.4
192 Colony Plaza Shopping Center 357 4 113 41 1.28 79.6 70.8
193 Rolling Oaks Plaza 361 2 118 23 1.32 74.9 65.1
194 170 Meeting Street 360 2 118 46 1.39 76.7 67.5
195 Dracut Village Shopping Center 300 2 178 46 1.50 68.3 44.5
196 Villa Cezanne Apartments 360 0 120 24 1.72 54.4 46.4
197 Uniprop - Camelot Villa 360 0 126 24 1.86 62.0 51.9
198 Office/Laboratory Industrial Facility 360 2 118 58 1.42 71.6 63.0
199 Hilltop Plaza 360 3 117 45 1.34 74.6 65.5
200 101 Park Avenue 300 5 115 43 1.33 71.7 58.3
201 Skyline Manufactured Home Community 360 0 126 24 1.99 62.5 52.3
202 Castle Apartments 240 0 240 72 1.36 71.4 0.0
203 Sono Square 360 2 118 46 1.43 74.9 66.1
204 Empire Inn - Best Western 300 2 117 25 1.49 74.9 63.1
205 Montvale Place 360 3 117 45 1.49 71.3 62.9
206 251-57 West 45th Street/254 West 46th Street 180 1 179 0 1.38 53.4 0.0
207 Fixture World Facility 240 1 119 25 1.28 71.9 51.3
208 K Mart 239 50 189 10 1.16 65.1 0.0
209 Jeremy Apartments 360 0 120 24 1.20 74.4 63.9
210 119th Plaza Shopping Center 300 0 120 24 1.45 72.5 57.5
211 Riverwood Village Shopping Center 360 3 117 45 1.40 76.2 67.1
212 Valencia Autoplex 360 3 81 45 1.37 78.2 72.2
213 Grand View Center 300 2 118 24 1.28 75.6 61.7
214 747 Chestnut Ridge Road 360 2 118 46 1.39 78.0 68.9
215 Perimeter Park 360 2 118 46 1.33 55.8 49.0
216 Holiday Inn Sturbridge 300 2 118 25 1.45 71.0 58.5
217 University Village East 360 0 120 24 1.34 74.8 64.7
218 Cannon Park Warehouse 360 1 83 24 1.35 62.5 57.4
219 939-945 Fourth Avenue 360 1 119 24 1.28 74.9 64.7
220 11312 Westheimer Shopping Center 360 7 113 41 1.29 75.1 66.5
221 Circuit City (Property Level) 264 20 244 0 1.00 92.7 0.0
222 Greenfields Retirement Community 300 1 119 11 1.57 68.7 54.8
223 3700 & 3800 Classen Office Buildings 360 4 116 44 1.27 74.1 65.3
224 Algonquin Apartments 360 4 116 24 1.37 78.3 67.7
225 Westgate Service 360 1 83 29 1.35 72.0 66.8
226 First Southern Bank Building 360 1 119 24 1.29 81.0 70.2
227 Comfort Inn - Warner Robins 300 1 119 47 1.82 72.9 59.2
228 Greenbriar Apartments 360 2 208 94 1.39 79.3 57.5
229 Ridge Manor Apartments 360 3 117 24 1.26 74.8 65.0
</TABLE>
A-2-3
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Interest- Interest-
Control Only Period Only Period Amortization Cut-off Date
No. Property Name (months) (months) Type Balance ($)
=======================================================================================================================
<S> <C> <C> <C> <C> <C>
230 Greenwood Gardens Office Building Balloon 2,692,179.09
231 Lock-It-Up Self-Storage (Pacifica) Balloon 2,691,592.34
232 Crestridge Corporate Center Fully Amortizing 2,689,832.37
233 Shadow Hills MHP Balloon 2,676,244.80
234 Red Oaks Apartments Balloon 2,673,093.32
235 Lock It Up (Pleasanton) Fully Amortizing 2,645,172.98
236 89-55 Queens Blvd Balloon 2,644,301.14
237 Kentwood Apartments Balloon 2,641,683.31
238 Uniprop - Fairway Villas ARD 2,600,000.00
239 8000 Edgewater Drive Balloon 2,598,485.84
240 1020 and 1030 South Arroyo Parkway Balloon 2,597,324.90
241 Crichton Plaza Balloon 2,596,489.51
242 Nottingham Village Center Balloon 2,594,904.07
243 Shurgard - Hermitage Balloon 2,594,335.00
244 Walgreens (Shawnee) Balloon 2,582,152.92
245 Walgreen's (Westmoreland) Balloon 2,553,511.95
246 Ashburton Woods Apartments Balloon 2,545,985.68
247 Uniprop - Colonial Village ARD 2,500,000.00
248 Pyramid Professional Center Balloon 2,500,000.00
249 Las Tunas Plaza Shopping Center Balloon 2,497,092.59
250 The Sawyer Building Fully Amortizing 2,495,811.30
251 11123-11163 South Towne Square Balloon 2,494,901.38
252 Eastlake Garden Apartments Balloon 2,494,684.50
253 Country Villa Westwood Nursing Center Balloon 2,494,577.93
254 Cinderella Properties (Loan Level) Fully Amortizing 2,484,451.13
255 Eckerd Pharmacy (Corpus Christi) Step 2,475,431.36
256 Landmark Centre Balloon 2,472,878.15
257 Eckerd - Baton Rouge Step 2,467,642.51
258 280 Station Shopping Center ARD 2,448,600.04
259 Woodland Park Apartments Balloon 2,434,958.15
260 Pinehurst Villas Balloon 2,421,758.30
261 Park Avenue Apartments Balloon 2,398,526.58
262 Cypress Corners Office Building Balloon 2,398,436.03
263 Days Inn Westminster Balloon 2,395,197.41
264 Lock It Up (Fremont) Balloon 2,392,526.51
265 Hidden Village Apartments Balloon 2,392,511.70
266 1900 Century Plaza Office Building Balloon 2,378,489.18
267 U-Stor Greenway Fully Amortizing 2,376,681.64
268 Cedars Apartments Balloon 2,350,541.65
269 Manny's Music Building Balloon 2,319,892.44
270 Smoky Hill Shopping Center Balloon 2,312,965.50
271 Schooset Village Balloon 2,298,848.25
272 Ranch Circle Plaza Balloon 2,298,647.87
273 Mini-Maxi Warehouse Balloon 2,297,744.43
274 Country Hill Center Balloon 2,296,971.27
275 Kensington Garden Apartments Balloon 2,295,173.09
276 Central Eugene Industrial Park Balloon 2,285,000.00
277 The Sunset Village Apartments Balloon 2,280,000.00
278 Berkshire Manor Apartments Balloon 2,272,618.71
279 Olympus Shadows Balloon 2,258,540.84
280 Oceanside Outparcel Building C Balloon 2,246,575.59
281 U-Stor Bell Fully Amortizing 2,237,461.80
282 6420 Richmond Avenue Balloon 2,200,000.00
283 Rolling Acres Retail Center Balloon 2,197,022.19
284 Farm Credit Services Balloon 2,197,014.78
285 Riverside Office Buiding Balloon 2,172,164.58
286 Holiday Inn-Heritage Balloon 2,168,426.48
287 Akers Away Mobile Home Park Balloon 2,168,037.80
288 Arrowhead Lakes Marketplace Balloon 2,156,468.89
289 Pear Orchard Village Shopping Center Fully Amortizing 2,148,531.82
290 Wallgarden Shopping Center Balloon 2,143,331.50
291 Pico&Union Plaza Balloon 2,138,765.48
292 Abrams Run Building Fully Amortizing 2,100,000.00
293 Bayhead Mobile Home Park ARD 2,100,000.00
294 Willow Creek Apartments Balloon 2,098,698.89
295 Arbor Square Shopping Center Balloon 2,097,107.79
296 Brookdale Towers Balloon 2,095,873.04
297 Roy's Trailer Park Balloon 2,093,542.74
298 3 Ethel Boulevard Balloon 2,091,555.84
299 Green River Apartments Balloon 2,077,128.20
300 Mid-Valley Business Center Balloon 2,048,708.92
301 Emerald Point Apartments Balloon 2,040,000.00
302 Times Square Townhome Apartments Balloon 1,996,069.57
303 El Rancho Drive Stowall Balloon 1,996,036.10
304 Shurgard - Med Center Balloon 1,995,642.30
305 Mesa Building ARD 1,991,214.76
306 Statewide Self Storage Balloon 1,945,961.50
<CAPTION>
Balloon/
Control Monthly ARD Mortgage
No. Property Name P&I ($) Balance ARD Maturity Rate (%)
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
230 Greenwood Gardens Office Building 19,194.08 2,049,120 4/1/13 7.6700
231 Lock-It-Up Self-Storage (Pacifica) 19,690.07 1,740,896 5/1/13 7.3500
232 Crestridge Corporate Center 21,673.23 0 3/1/18 7.3800
233 Shadow Hills MHP 18,082.80 2,346,371 6/1/08 7.1400
234 Red Oaks Apartments 17,800.64 2,295,722 7/10/08 6.9000
235 Lock It Up (Pleasanton) 21,234.94 0 7/1/18 7.4300
236 89-55 Queens Blvd 19,274.05 2,141,261 6/1/08 7.3200
237 Kentwood Apartments 17,977.67 2,284,475 4/1/08 7.0900
238 Uniprop - Fairway Villas 16,509.85 2,180,123 2/10/09 8/10/28 6.4500
239 8000 Edgewater Drive 17,701.33 2,469,507 7/1/03 7.2300
240 1020 and 1030 South Arroyo Parkway 18,459.27 2,083,760 7/1/08 7.0500
241 Crichton Plaza 17,807.18 2,285,207 6/1/08 7.2900
242 Nottingham Village Center 17,701.33 2,282,016 5/1/08 7.2300
243 Shurgard - Hermitage 18,792.98 2,096,375 6/1/08 7.2500
244 Walgreens (Shawnee) 19,572.89 661,762 2/1/18 7.3800
245 Walgreen's (Westmoreland) 19,380.44 714,849 11/1/16 7.1900
246 Ashburton Woods Apartments 17,343.64 2,199,408 6/1/08 7.2200
247 Uniprop - Colonial Village 15,708.08 2,090,614 2/10/09 8/10/28 6.3500
248 Pyramid Professional Center 16,823.98 2,150,821 8/1/08 7.0100
249 Las Tunas Plaza Shopping Center 18,271.99 1,986,252 7/1/08 7.3750
250 The Sawyer Building 20,248.42 0 7/1/18 7.4600
251 11123-11163 South Towne Square 16,767.10 2,185,655 5/1/08 7.0800
252 Eastlake Garden Apartments 16,498.46 2,176,379 5/1/08 6.9200
253 Country Villa Westwood Nursing Center 19,014.72 2,010,300 6/1/08 7.8300
254 Cinderella Properties (Loan Level) 22,751.18 0 6/1/13 7.2000
255 Eckerd Pharmacy (Corpus Christi) Step* 0 2/1/18 7.2600
256 Landmark Centre 18,873.48 2,032,630 7/1/08 7.8600
257 Eckerd - Baton Rouge Step* 927,000 4/1/18 7.4300
258 280 Station Shopping Center 16,779.84 2,153,635 7/1/08 7/1/28 7.2900
259 Woodland Park Apartments 16,282.57 2,130,383 5/1/08 7.0300
260 Pinehurst Villas 16,674.56 1,883,531 6/1/13 7.3300
261 Park Avenue Apartments 16,064.09 2,097,060 7/1/08 7.0600
262 Cypress Corners Office Building 16,547.30 2,076,604 7/10/08 7.2500
263 Days Inn Westminster 18,049.18 1,961,478 6/1/08 7.7000
264 Lock It Up (Fremont) 17,502.29 1,547,461 5/1/13 7.3500
265 Hidden Village Apartments 17,486.77 1,546,644 5/1/13 7.3400
266 1900 Century Plaza Office Building 16,574.24 2,063,966 7/1/08 7.3500
267 U-Stor Greenway 18,991.48 0 5/1/18 7.3200
268 Cedars Apartments 19,935.68 1,980,016 11/1/06 8.8750
269 Manny's Music Building 20,873.97 1,339,598 7/1/08 7.8750
270 Smoky Hill Shopping Center 16,051.32 2,041,851 6/1/08 7.4100
271 Schooset Village 16,382.22 2,042,298 7/1/08 7.6900
272 Ranch Circle Plaza 15,612.13 2,017,072 7/1/08 7.2000
273 Mini-Maxi Warehouse 16,654.21 1,855,882 7/1/08 7.2700
274 Country Hill Center 15,909.05 2,026,713 6/1/08 7.3900
275 Kensington Garden Apartments 16,097.38 1,996,823 5/1/08 7.4000
276 Central Eugene Industrial Park 15,696.36 1,712,059 8/1/13 7.3200
277 The Sunset Village Apartments 15,232.71 1,958,594 8/10/08 6.9400
278 Berkshire Manor Apartments 16,035.71 1,437,327 7/1/13 6.9700
279 Olympus Shadows 15,376.30 1,985,201 5/1/08 7.2100
280 Oceanside Outparcel Building C 15,563.20 1,948,126 6/1/08 7.3900
281 U-Stor Bell 17,879.01 0 5/1/18 7.3200
282 6420 Richmond Avenue 15,288.47 2,018,597 8/1/05 7.3300
283 Rolling Acres Retail Center 15,052.67 1,933,139 6/1/08 7.2800
284 Farm Credit Services 15,037.73 1,851,049 6/1/10 7.2700
285 Riverside Office Buiding 15,103.80 1,918,515 6/1/08 7.4300
286 Holiday Inn-Heritage 16,073.06 1,767,368 5/1/08 7.5000
287 Akers Away Mobile Home Park 15,665.04 1,751,856 5/1/08 7.2100
288 Arrowhead Lakes Marketplace 14,313.55 1,851,967 6/1/08 6.8600
289 Pear Orchard Village Shopping Center 23,382.89 0 9/1/11 9.0400
290 Wallgarden Shopping Center 15,706.95 876,129 5/1/18 7.3700
291 Pico&Union Plaza 14,613.09 1,879,678 7/1/08 7.2600
292 Abrams Run Building 15,021.03 0 8/10/23 7.0300
293 Bayhead Mobile Home Park 13,194.79 1,756,115 2/10/09 8/10/28 6.3500
294 Willow Creek Apartments 14,013.69 1,833,472 7/1/08 7.0300
295 Arbor Square Shopping Center 14,268.77 1,841,931 6/1/08 7.2100
296 Brookdale Towers 14,283.00 1,842,688 5/1/08 7.2200
297 Roy's Trailer Park 14,497.02 1,817,438 4/1/08 7.3700
298 3 Ethel Boulevard 16,409.99 452,636 5/1/18 7.6100
299 Green River Apartments 14,118.79 1,823,916 6/1/08 7.2000
300 Mid-Valley Business Center 14,318.83 1,778,983 7/1/08 7.3800
301 Emerald Point Apartments 13,643.20 1,752,842 8/10/08 6.9500
302 Times Square Townhome Apartments 13,602.85 1,754,942 5/1/08 7.2200
303 El Rancho Drive Stowall 15,106.58 1,636,975 6/11/08 6/11/23 7.7500
304 Shurgard - Med Center 14,456.14 1,612,596 6/1/08 7.2500
305 Mesa Building 14,443.25 1,612,160 4/1/08 4/1/23 7.2400
306 Statewide Self Storage 14,435.70 1,585,191 6/1/08 7.5200
<CAPTION>
Original Remaining Scheduled
Amortization Term to ARD Remaining Cut-off Cut-off Maturity or
Control Term Seasoning or Maturity Lockout Date Date ARD Date
No. Property Name (months) (months) (months) Months DSCR (x) LTV (%) LTV (%)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
230 Greenwood Gardens Office Building 360 4 176 0 1.31 58.5 44.6
231 Lock-It-Up Self-Storage (Pacifica) 300 3 177 81 1.61 65.0 42.1
232 Crestridge Corporate Center 237 2 235 142 1.27 61.1 0.0
233 Shadow Hills MHP 360 2 118 58 1.28 74.8 65.5
234 Red Oaks Apartments 360 1 119 24 1.62 76.4 65.6
235 Lock It Up (Pleasanton) 240 1 239 119 1.41 64.1 0.0
236 89-55 Queens Blvd 300 2 118 46 1.57 63.0 51.0
237 Kentwood Apartments 360 4 116 24 1.31 80.1 69.2
238 Uniprop - Fairway Villas 360 0 126 24 1.71 72.2 60.6
239 8000 Edgewater Drive 360 1 59 35 1.44 64.2 61.0
240 1020 and 1030 South Arroyo Parkway 300 1 119 47 1.71 66.6 53.4
241 Crichton Plaza 360 2 118 46 1.30 74.2 65.3
242 Nottingham Village Center 360 3 117 45 1.46 66.5 58.5
243 Shurgard - Hermitage 300 2 118 58 1.73 70.1 56.7
244 Walgreens (Shawnee) 275 3 234 117 1.03 89.4 22.9
245 Walgreen's (Westmoreland) 263 2 219 94 1.02 92.9 26.0
246 Ashburton Woods Apartments 360 2 118 24 1.25 79.6 68.7
247 Uniprop - Colonial Village 360 0 126 24 1.52 69.4 58.1
248 Pyramid Professional Center 360 0 120 24 1.49 69.4 59.8
249 Las Tunas Plaza Shopping Center 300 1 119 24 1.42 74.5 59.3
250 The Sawyer Building 240 1 239 24 1.73 65.7 0.0
251 11123-11163 South Towne Square 360 3 117 45 1.44 71.3 62.5
252 Eastlake Garden Apartments 360 3 117 45 1.31 73.4 64.0
253 Country Villa Westwood Nursing Center 300 2 118 24 1.61 70.1 56.5
254 Cinderella Properties (Loan Level) 180 2 178 82 2.07 34.0 0.0
255 Eckerd Pharmacy (Corpus Christi) 236 2 234 94 1.00 90.0 0.0
256 Landmark Centre 300 1 119 47 1.32 74.9 61.6
257 Eckerd - Baton Rouge 293 2 236 94 1.00 98.7 37.1
258 280 Station Shopping Center 360 1 119 47 1.40 74.2 65.3
259 Woodland Park Apartments 360 3 117 45 1.47 79.8 69.9
260 Pinehurst Villas 360 2 178 82 1.22 77.3 60.1
261 Park Avenue Apartments 360 1 119 59 1.51 75.0 65.5
262 Cypress Corners Office Building 360 1 119 24 1.51 73.8 63.9
263 Days Inn Westminster 300 2 118 46 1.57 72.6 59.4
264 Lock It Up (Fremont) 300 3 177 81 1.68 59.8 38.7
265 Hidden Village Apartments 300 3 177 45 1.29 67.2 43.5
266 1900 Century Plaza Office Building 360 1 119 24 1.78 63.5 55.2
267 U-Stor Greenway 240 3 237 81 1.32 69.9 0.0
268 Cedars Apartments 300 21 99 3 1.61 62.7 52.8
269 Manny's Music Building 204 1 119 24 1.29 74.8 43.2
270 Smoky Hill Shopping Center 360 2 118 58 1.34 68.0 60.1
271 Schooset Village 360 1 119 47 1.35 80.0 71.0
272 Ranch Circle Plaza 360 1 119 47 1.51 74.5 65.4
273 Mini-Maxi Warehouse 300 1 119 47 1.57 74.1 59.9
274 Country Hill Center 360 2 118 46 1.34 74.1 65.4
275 Kensington Garden Apartments 360 3 117 24 1.25 77.8 67.7
276 Central Eugene Industrial Park 360 0 180 0 1.39 68.0 51.0
277 The Sunset Village Apartments 360 0 120 24 1.64 77.3 66.4
278 Berkshire Manor Apartments 300 1 179 83 1.43 62.7 39.7
279 Olympus Shadows 360 3 117 45 1.40 77.9 68.5
280 Oceanside Outparcel Building C 360 2 118 46 1.31 72.5 62.8
281 U-Stor Bell 240 3 237 81 1.39 67.8 0.0
282 6420 Richmond Avenue 360 0 84 24 1.59 70.4 61.0
283 Rolling Acres Retail Center 360 2 118 46 1.30 78.5 69.0
284 Farm Credit Services 360 2 142 70 1.50 84.5 71.2
285 Riverside Office Buiding 360 2 118 46 1.36 74.9 66.2
286 Holiday Inn-Heritage 300 3 117 45 1.63 71.1 58.0
287 Akers Away Mobile Home Park 300 3 117 57 1.25 74.3 60.0
288 Arrowhead Lakes Marketplace 360 2 118 24 1.43 69.7 59.8
289 Pear Orchard Village Shopping Center 180 23 157 37 2.00 47.5 0.0
290 Wallgarden Shopping Center 300 3 237 117 1.34 74.7 30.5
291 Pico&Union Plaza 360 1 119 47 1.41 73.8 64.8
292 Abrams Run Building 300 0 300 0 1.27 73.7 0.0
293 Bayhead Mobile Home Park 360 0 126 24 1.27 65.6 54.9
294 Willow Creek Apartments 360 1 119 47 1.38 75.0 65.5
295 Arbor Square Shopping Center 360 2 118 46 1.46 74.9 65.8
296 Brookdale Towers 360 3 117 45 1.56 60.8 53.4
297 Roy's Trailer Park 360 4 116 0 1.58 69.8 60.6
298 3 Ethel Boulevard 264 3 237 105 1.30 72.1 15.6
299 Green River Apartments 360 2 118 24 1.28 79.9 70.2
300 Mid-Valley Business Center 360 1 119 24 1.46 68.3 59.3
301 Emerald Point Apartments 360 0 120 24 1.45 79.1 67.9
302 Times Square Townhome Apartments 360 3 117 57 1.41 78.3 68.8
303 El Rancho Drive Stowall 300 2 118 24 1.49 70.8 58.1
304 Shurgard - Med Center 300 2 118 58 1.54 66.5 53.8
305 Mesa Building 300 4 116 44 1.33 71.1 57.6
306 Statewide Self Storage 300 2 118 58 1.52 75.7 61.7
</TABLE>
A-2-4
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Interest- Interest-
Control Only Period Only Period Amortization Cut-off Date
No. Property Name (months) (months) Type Balance ($)
=======================================================================================================================
<S> <C> <C> <C> <C> <C>
307 1040 Sheridan Street Balloon 1,898,092.23
308 Lincoln Plaza Balloon 1,896,234.30
309 Lock-It Up Self Storage Fully Amortizing 1,894,057.50
310 Lock-It Up Self Storage Fully Amortizing 1,894,057.50
311 Bashas Square ARD 1,865,899.13
312 Marina View Office Building Balloon 1,847,350.17
313 Eckerd - San Antonio Fully Amortizing 1,843,049.26
314 Georgetown Phase III Apartments Fully Amortizing 1,839,056.42
315 Calabasas Junction Balloon 1,834,764.09
316 Washington Ave. Office Building Balloon 1,821,178.54
317 Sierra Vista Balloon 1,796,730.59
318 Holiday Inn Express Anderson Balloon 1,796,581.57
319 Boulevard Shops at the Kentlands Balloon 1,796,574.94
320 Woodland Square Apartments Balloon 1,796,280.61
321 Highview Place Apartments ARD 1,794,471.04
322 Party City Center Balloon 1,777,590.68
323 Green Gables Apartments Balloon 1,760,000.00
324 Richmond/Sage Shopping Center Balloon 1,751,615.14
325 Eastside Storage Balloon 1,744,992.40
326 Eckerd - Benbrook Fully Amortizing 1,743,424.97
327 Carmel Plaza Balloon 1,715,000.00
328 Rosedale Estates North Fully Amortizing 1,689,943.74
329 Magnolia Lane MHP Balloon 1,677,726.00
330 5045 North 12th Street Balloon 1,675,000.00
331 Cooper Creek Village Fully Amortizing 1,654,223.58
332 Best Western Casablanca Inn Balloon 1,646,729.81
333 Bell-Haun Systems/Huber Village (Eastwind-Loan Level) ARD 1,641,715.85
334 Robert Blake Building Balloon 1,600,000.00
335 9 Commonwealth Avenue Balloon 1,598,902.12
336 Central Self-Storage Facility (Eugene) Balloon 1,598,579.40
337 Terrace Apartments Balloon 1,598,406.58
338 Arbor View Apartments Balloon 1,580,316.27
339 Kinnaird & Franke Building Balloon 1,573,023.50
340 Rancho Terrace Center Balloon 1,572,857.54
341 Shadow Tree Apartments Balloon 1,558,190.52
342 Federal Express Building Balloon 1,555,103.67
343 Little Miami Estates Mobile Home Park Balloon 1,539,068.97
344 4000 Park Balloon 1,538,536.02
345 Crossroads Plaza Office Building Balloon 1,525,000.00
346 Copper Crest Balloon 1,524,136.89
347 Rapp Building-Sunset Mercantile Center Balloon 1,511,379.73
348 Lexington Place Apartments Balloon 1,499,123.69
349 Cherry Hill Apartments Fully Amortizing 1,494,780.33
350 Norton Plaza Shopping Center Balloon 1,490,370.60
351 Rite Aid - Walcott Fully Amortizing 1,477,893.74
352 Shurgaurd - Tumwater Balloon 1,452,990.30
353 Crystal Lake Apartments Balloon 1,448,555.96
354 Peacock Woods I&II Fully Amortizing 1,444,954.32
355 Griffith Park Office Building Balloon 1,434,078.71
356 211 Pharr Road Balloon 1,397,960.88
357 11th Street Property Fully Amortizing 1,395,771.83
358 Expressway Tower Balloon 1,394,075.59
359 Shannon Woods I Apartments Balloon 1,389,123.68
360 Shurgard - West Olympia Balloon 1,389,122.60
361 Bridgestone/Firestone Service Facility Step 1,382,540.69
362 Lake Elsinore Self Storage Balloon 1,378,622.67
363 Village Square Fully Amortizing 1,355,267.50
364 Shurgaurd - Yakima Balloon 1,349,204.40
365 Country Oaks Shopping Center Balloon 1,347,246.76
366 Branch Hill Mhp Balloon 1,339,189.88
367 JMF Enterprises Balloon 1,306,626.56
368 Spanish Villa Apartments Balloon 1,298,705.35
369 IHOP Step 1,297,186.53
370 Village Mobile Home Park Balloon 1,297,178.00
371 Big Lots Shopping Center ARD 1,295,838.69
372 Tradewinds Mhp Balloon 1,289,230.12
373 Sam Houston Parkway Office Bldg Balloon 1,267,268.30
374 38th Ave. Office Building Balloon 1,250,000.00
375 620 Auto Exchange Balloon 1,250,000.00
376 Eastwood Lake Apartments Balloon 1,234,168.72
377 Southland - Lakecity Step 1,232,901.15
378 Central Self-Storage - Warner Balloon 1,224,390.77
379 Uniprop - Aster Lake Estates ARD 1,200,000.00
380 Torrey Pines Apartments Balloon 1,199,245.15
381 2610-2614 North Wilmington Avenue (Chief Auto) Balloon 1,198,355.47
382 233 E. 89th Street Balloon 1,197,137.27
383 Blockbuster Center Fully Amortizing 1,193,353.50
<CAPTION>
Balloon/
Control Monthly ARD Mortgage
No. Property Name P&I ($) Balance ARD Maturity Rate (%)
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
307 1040 Sheridan Street 14,178.60 1,519,189 7/1/08 7.5000
308 Lincoln Plaza 14,351.25 1,550,819 6/11/08 6/11/28 7.7500
309 Lock-It Up Self Storage 17,184.14 0 7/1/13 7.1000
310 Lock-It Up Self Storage 17,184.14 0 7/1/13 7.1000
311 Bashas Square 13,135.96 1,656,723 1/1/08 1/1/28 7.5200
312 Marina View Office Building 13,075.24 1,609,709 6/1/08 7.5000
313 Eckerd - San Antonio 14,514.20 0 6/1/18 7.0500
314 Georgetown Phase III Apartments 21,072.33 0 7/1/08 6.5700
315 Calabasas Junction 12,848.07 1,594,857 6/10/08 7.5000
316 Washington Ave. Office Building 12,785.61 1,676,493 5/1/05 7.4100
317 Sierra Vista 12,598.19 1,591,210 5/1/08 7.5100
318 Holiday Inn Express Anderson 13,856.94 1,482,763 6/1/08 7.9700
319 Boulevard Shops at the Kentlands 12,389.24 1,584,348 5/1/08 7.3400
320 Woodland Square Apartments 12,011.73 1,571,594 5/1/08 7.0300
321 Highview Place Apartments 12,450.56 1,403,160 3/1/13 3/1/28 7.3900
322 Party City Center 12,178.98 1,498,156 6/1/10 7.2800
323 Green Gables Apartments 11,710.57 1,510,457 8/1/08 6.9000
324 Richmond/Sage Shopping Center 12,019.85 1,542,753 5/1/08 7.2900
325 Eastside Storage 13,241.24 1,433,484 5/1/08 7.7700
326 Eckerd - Benbrook 13,729.65 0 6/1/18 7.0500
327 Carmel Plaza 11,823.10 1,449,983 8/1/09 7.2500
328 Rosedale Estates North 19,363.76 0 7/1/08 6.5700
329 Magnolia Lane MHP 11,494.77 1,476,215 6/1/08 7.2800
330 5045 North 12th Street 11,177.58 1,462,202 8/1/08 7.0300
331 Cooper Creek Village 12,191.77 0 5/1/23 7.4300
332 Best Western Casablanca Inn 12,462.92 1,085,855 6/1/13 7.7500
333 Bell-Haun Systems/Huber Village (Eastwind-Loan Level) 11,390.52 1,452,413 1/1/08 1/1/28 7.3700
334 Robert Blake Building 10,914.82 1,380,966 8/1/08 7.2500
335 9 Commonwealth Avenue 10,811.21 1,378,020 7/1/08 7.0500
336 Central Self-Storage Facility (Eugene) 12,043.27 1,420,623 7/1/05 7.7100
337 Terrace Apartments 11,513.42 1,288,279 7/1/08 7.2000
338 Arbor View Apartments 11,158.62 1,377,814 4/1/08 7.5700
339 Kinnaird & Franke Building 11,099.04 1,394,524 6/1/08 7.5800
340 Rancho Terrace Center 10,754.96 1,383,238 6/1/08 7.2600
341 Shadow Tree Apartments 10,876.98 1,221,545 7/1/08 6.7500
342 Federal Express Building 11,336.16 1,374,418 5/1/05 7.3100
343 Little Miami Estates Mobile Home Park 10,359.68 1,347,387 7/1/08 7.1100
344 4000 Park 11,290.46 1,247,940 7/1/08 7.4100
345 Crossroads Plaza Office Building 10,597.69 1,399,255 8/1/05 7.3300
346 Copper Crest 10,475.69 1,341,563 7/1/08 7.3200
347 Rapp Building-Sunset Mercantile Center 10,258.01 1,305,361 5/1/08 7.1750
348 Lexington Place Apartments 10,202.14 1,316,166 7/1/08 7.2200
349 Cherry Hill Apartments 11,016.66 0 5/1/23 7.4300
350 Norton Plaza Shopping Center 10,710.86 1,329,269 2/1/08 7.7400
351 Rite Aid - Walcott 12,134.39 0 1/1/17 7.2500
352 Shurgaurd - Tumwater 10,788.14 1,183,963 6/1/08 7.5300
353 Crystal Lake Apartments 10,434.04 1,167,503 7/1/08 7.2000
354 Peacock Woods I&II 10,649.44 0 5/1/23 7.4300
355 Griffith Park Office Building 9,966.57 1,243,054 7/1/08 7.3200
356 211 Pharr Road 9,894.67 1,218,056 6/1/08 7.6100
357 11th Street Property 12,978.17 0 7/1/13 7.5000
358 Expressway Tower 10,291.30 1,135,394 4/1/08 7.4400
359 Shannon Woods I Apartments 9,289.07 1,215,367 5/1/08 7.0300
360 Shurgard - West Olympia 10,313.94 1,131,920 6/1/08 7.5300
361 Bridgestone/Firestone Service Facility Step* 0 10/1/17 6.9400
362 Lake Elsinore Self Storage 9,921.45 1,110,800 7/1/08 7.1900
363 Village Square 9,988.44 0 5/1/23 7.4300
364 Shurgaurd - Yakima 10,017.56 1,099,315 6/1/08 7.5300
365 Country Oaks Shopping Center 9,054.23 1,180,255 5/1/08 7.0800
366 Branch Hill Mhp 9,014.27 1,172,401 7/1/08 7.1100
367 JMF Enterprises 9,793.77 1,049,436 4/1/08 7.5000
368 Spanish Villa Apartments 9,354.65 1,046,728 7/1/08 7.2000
369 IHOP Step* 0 6/1/21 8.0200
370 Village Mobile Home Park 9,413.25 1,051,658 5/1/08 7.2700
371 Big Lots Shopping Center 9,363.02 1,047,085 5/1/08 5/1/23 7.2100
372 Tradewinds Mhp 8,667.91 1,130,407 7/1/08 7.1100
373 Sam Houston Parkway Office Bldg 8,791.63 1,164,587 5/1/05 7.2900
374 38th Ave. Office Building 8,633.44 1,081,929 8/10/08 7.3750
375 620 Auto Exchange 9,326.94 999,468 8/1/08 7.5000
376 Eastwood Lake Apartments 8,408.52 1,065,519 7/1/08 7.1250
377 Southland - Lakecity Step* 0 4/1/13 7.8400
378 Central Self-Storage - Warner 8,742.21 1,140,939 7/1/05 7.7100
379 Uniprop - Aster Lake Estates 7,539.88 1,003,494 2/10/09 8/10/28 6.3500
380 Torrey Pines Apartments 7,967.52 1,136,482 7/1/03 6.9800
381 2610-2614 North Wilmington Avenue (Chief Auto) 8,169.84 1,008,341 6/1/10 7.2300
382 233 E. 89th Street 8,042.84 1,026,573 5/1/08 6.9400
383 Blockbuster Center 9,571.95 0 5/1/18 7.3700
<CAPTION>
Original Remaining Scheduled
Amortization Term to ARD Remaining Cut-off Cut-off Maturity or
Control Term Seasoning or Maturity Lockout Date Date ARD Date
No. Property Name (months) (months) (months) Months DSCR (x) LTV (%) LTV (%)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
307 1040 Sheridan Street 300 1 119 24 1.29 75.0 60.1
308 Lincoln Plaza 300 2 118 24 1.29 70.2 57.4
309 Lock-It Up Self Storage 180 1 179 83 1.62 58.1 0.0
310 Lock-It Up Self Storage 180 1 179 83 1.92 50.5 0.0
311 Bashas Square 360 7 113 41 1.37 74.6 66.3
312 Marina View Office Building 360 2 118 24 1.16 73.9 64.4
313 Eckerd - San Antonio 240 2 238 24 1.06 83.8 0.0
314 Georgetown Phase III Apartments 120 1 119 24 1.87 27.5 0.0
315 Calabasas Junction 360 2 118 0 1.36 74.9 65.1
316 Washington Ave. Office Building 360 3 81 24 1.29 70.1 64.5
317 Sierra Vista 360 3 117 45 1.64 59.9 53.0
318 Holiday Inn Express Anderson 300 2 118 46 1.50 74.9 61.8
319 Boulevard Shops at the Kentlands 360 3 117 45 1.30 73.3 64.7
320 Woodland Square Apartments 360 3 117 45 1.55 79.8 69.9
321 Highview Place Apartments 359 3 175 43 1.26 81.6 63.8
322 Party City Center 360 2 142 46 1.46 74.1 62.4
323 Green Gables Apartments 360 0 120 24 1.37 80.0 68.7
324 Richmond/Sage Shopping Center 360 3 117 45 1.34 77.9 68.6
325 Eastside Storage 300 3 117 57 1.36 75.9 62.3
326 Eckerd - Benbrook 240 2 238 24 1.07 83.4 0.0
327 Carmel Plaza 360 0 132 24 1.35 74.9 63.3
328 Rosedale Estates North 120 1 119 24 1.86 27.3 0.0
329 Magnolia Lane MHP 360 2 118 58 1.40 74.9 65.9
330 5045 North 12th Street 360 0 120 54 1.36 72.0 62.9
331 Cooper Creek Village 300 3 297 177 1.41 79.7 0.0
332 Best Western Casablanca Inn 300 2 178 82 1.58 63.3 41.8
333 Bell-Haun Systems/Huber Village
(Eastwind-Loan Level) 360 7 113 41 1.64 58.6 51.9
334 Robert Blake Building 360 0 120 24 1.41 69.6 60.0
335 9 Commonwealth Avenue 360 1 119 24 1.29 67.2 57.9
336 Central Self-Storage Facility (Eugene) 300 1 83 29 1.58 57.1 50.7
337 Terrace Apartments 300 1 119 47 1.54 69.8 56.3
338 Arbor View Apartments 360 4 116 56 1.30 68.7 59.9
339 Kinnaird & Franke Building 360 2 118 58 1.32 74.9 66.4
340 Rancho Terrace Center 360 2 118 46 1.34 74.9 65.9
341 Shadow Tree Apartments 300 1 119 0 1.83 50.9 39.9
342 Federal Express Building 300 3 81 33 1.28 74.8 66.1
343 Little Miami Estates Mobile Home Park 360 1 119 47 1.67 66.9 58.6
344 4000 Park 300 1 119 47 1.30 74.2 60.1
345 Crossroads Plaza Office Building 360 0 84 24 2.24 52.0 47.7
346 Copper Crest 360 1 119 47 1.30 72.6 63.9
347 Rapp Building-Sunset Mercantile Center 360 3 117 0 1.41 74.8 64.6
348 Lexington Place Apartments 360 1 119 59 1.42 80.0 70.2
349 Cherry Hill Apartments 300 3 297 177 1.31 76.7 0.0
350 Norton Plaza Shopping Center 360 6 114 42 1.25 69.3 61.8
351 Rite Aid - Walcott 223 2 221 118 1.03 91.8 0.0
352 Shurgaurd - Tumwater 300 2 118 70 1.25 79.8 65.1
353 Crystal Lake Apartments 300 1 119 47 1.40 74.3 59.9
354 Peacock Woods I&II 300 3 297 177 1.29 76.1 0.0
355 Griffith Park Office Building 360 1 119 24 1.33 69.3 60.1
356 211 Pharr Road 360 2 118 0 1.45 73.6 64.1
357 11th Street Property 180 1 179 173 2.24 55.8 0.0
358 Expressway Tower 300 4 116 44 1.28 74.4 60.6
359 Shannon Woods I Apartments 360 3 117 45 1.36 79.8 69.9
360 Shurgard - West Olympia 300 2 118 70 1.27 79.8 65.1
361 Bridgestone/Firestone Service Facility 231 1 230 119 1.00 98.8 0.0
362 Lake Elsinore Self Storage 300 1 119 59 1.47 74.5 60.0
363 Village Square 300 3 297 177 1.26 79.7 0.0
364 Shurgaurd - Yakima 300 2 118 70 1.28 79.8 65.1
365 Country Oaks Shopping Center 360 3 117 45 1.36 79.3 69.4
366 Branch Hill Mhp 360 1 119 47 1.57 67.0 58.6
367 JMF Enterprises 300 4 116 24 1.36 68.8 55.2
368 Spanish Villa Apartments 300 1 119 47 1.60 72.6 58.5
369 IHOP 275 1 274 119 1.04 92.7 0.0
370 Village Mobile Home Park 300 2 117 58 1.58 73.7 59.8
371 Big Lots Shopping Center 300 3 117 45 1.65 72.0 58.2
372 Tradewinds Mhp 362 1 119 47 1.68 67.0 58.7
373 Sam Houston Parkway Office Bldg 360 3 81 0 1.32 44.4 40.9
374 38th Ave. Office Building 360 0 120 24 1.49 69.4 60.1
375 620 Auto Exchange 300 0 120 24 1.47 73.5 58.8
376 Eastwood Lake Apartments 360 1 119 24 1.29 72.6 62.7
377 Southland - Lakecity 177 1 176 83 1.03 82.2 0.0
378 Central Self-Storage - Warner 360 1 83 29 1.33 52.1 48.6
379 Uniprop - Aster Lake Estates 360 0 126 24 1.06 60.0 50.2
380 Torrey Pines Apartments 360 1 59 24 1.40 80.0 75.8
381 2610-2614 North Wilmington Avenue (Chief Auto) 360 2 142 46 1.42 75.4 63.4
382 233 E. 89th Street 357 3 117 0 1.36 79.8 68.4
383 Blockbuster Center 240 3 237 117 1.44 74.1 0.0
</TABLE>
A-2-5
<PAGE>
<TABLE>
<CAPTION>
Original Remaining
Interest- Interest-
Control Only Period Only Period Amortization Cut-off Date
No. Property Name (months) (months) Type Balance ($)
=======================================================================================================================
<S> <C> <C> <C> <C> <C>
384 Gunbarrel Pointe Balloon 1,183,609.90
385 Westcello Apartments Balloon 1,177,293.75
386 Colton House Apartments Balloon 1,173,381.73
387 Robinwood II Apartments Balloon 1,157,603.07
388 Shops of South Athens Shopping Center Balloon 1,148,832.04
389 Hamilton Heights Apartments Balloon 1,148,275.64
390 A Medical Office Building Balloon 1,100,000.00
391 Southgate Apartments Balloon 1,094,099.03
392 Montbello Centre Balloon 1,042,405.44
393 Waters West Plaza Balloon 1,040,788.19
394 Miller Place S.C. Balloon 1,023,619.51
395 Kennedy Boulevard Apartments Balloon 1,020,000.00
396 Swartswood Road Balloon 998,287.80
397 Shurgaurd - Richland Balloon 989,949.48
398 Lyndon Lawn MHP Balloon 972,135.19
399 Fairmeadow Apartments Balloon 958,016.32
400 Hillcrest Plaza Shopping Center ARD 931,912.38
401 Glenwood Apartments Balloon 920,000.00
402 Bakers Plaza Balloon 898,282.81
403 Monroe Central Point Center Balloon 872,943.92
404 Hazel Hurst Mobile Home Park Balloon 829,498.22
405 58th Street Plaza Balloon 779,256.84
406 Robinwood Apartments Fully Amortizing 596,450.73
407 The Sherwood Apartments Balloon 500,000.00
408 Wayne Street Apartments Balloon 440,000.00
<CAPTION>
Balloon/
Control Monthly ARD Mortgage
No. Property Name P&I ($) Balance ARD Maturity Rate (%)
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
384 Gunbarrel Pointe 8,563.30 1,055,955 6/1/08 7.8400
385 Westcello Apartments 7,933.02 1,015,097 5/1/08 7.0000
386 Colton House Apartments 7,983.72 1,030,604 6/1/08 7.2100
387 Robinwood II Apartments 7,740.89 1,012,806 5/1/08 7.0300
388 Shops of South Athens Shopping Center 8,208.84 923,381 7/1/08 7.1100
389 Hamilton Heights Apartments 7,952.07 995,718 6/1/08 7.2800
390 A Medical Office Building 7,556.24 967,533 8/1/08 7.3200
391 Southgate Apartments 8,561.33 955,976 5/1/03 7.0500
392 Montbello Centre 10,439.48 951,754 4/1/01 9.1250
393 Waters West Plaza 7,615.77 827,869 7/10/08 7.3750
394 Miller Place S.C. 7,027.10 901,131 6/1/08 7.3000
395 Kennedy Boulevard Apartments 6,786.81 875,378 8/1/08 6.9000
396 Swartswood Road 7,783.03 682,182 7/1/08 7.0500
397 Shurgaurd - Richland 7,350.16 806,656 6/1/08 7.5300
398 Lyndon Lawn MHP 7,294.19 795,590 5/1/08 7.6400
399 Fairmeadow Apartments 6,406.26 838,183 5/1/08 7.0300
400 Hillcrest Plaza Shopping Center 6,638.24 749,377 5/1/08 5/1/23 7.0500
401 Glenwood Apartments 6,121.43 789,558 8/1/08 6.9000
402 Bakers Plaza 6,188.50 791,970 5/1/08 7.3300
403 Monroe Central Point Center 5,974.98 755,387 5/1/08 7.2600
404 Hazel Hurst Mobile Home Park 5,583.46 726,190 7/1/08 7.1100
405 58th Street Plaza 5,713.49 631,882 7/1/08 7.4000
406 Robinwood Apartments 6,834.27 0 7/1/08 6.5700
407 The Sherwood Apartments 3,326.89 429,103 8/1/08 6.9000
408 Wayne Street Apartments 2,927.64 377,615 8/1/08 6.9000
<CAPTION>
Original Remaining Scheduled
Amortization Term to ARD Remaining Cut-off Cut-off Maturity or
Control Term Seasoning or Maturity Lockout Date Date ARD Date
No. Property Name (months) (months) (months) Months DSCR (x) LTV (%) LTV (%)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
384 Gunbarrel Pointe 360 2 118 58 1.19 66.9 59.7
385 Westcello Apartments 360 3 117 24 1.31 79.8 68.8
386 Colton House Apartments 360 2 118 46 1.35 78.2 68.7
387 Robinwood II Apartments 360 3 117 45 1.27 79.8 69.9
388 Shops of South Athens Shopping Center 300 1 119 59 1.29 62.1 49.9
389 Hamilton Heights Apartments 360 2 118 24 1.41 74.1 64.2
390 A Medical Office Building 360 0 120 48 1.47 71.0 62.4
391 Southgate Apartments 240 3 57 27 1.34 66.3 57.9
392 Montbello Centre 240 52 32 0 1.56 37.4 34.1
393 Waters West Plaza 300 1 119 24 1.36 72.3 57.5
394 Miller Place S.C. 360 2 118 46 1.38 74.5 65.5
395 Kennedy Boulevard Apartments 360 0 120 24 1.37 80.0 68.7
396 Swartswood Road 240 1 119 47 1.28 66.8 45.6
397 Shurgaurd - Richland 300 2 118 70 1.25 79.8 65.1
398 Lyndon Lawn MHP 300 3 117 57 1.20 74.8 61.2
399 Fairmeadow Apartments 360 3 117 45 1.48 79.8 69.9
400 Hillcrest Plaza Shopping Center 300 3 117 45 1.54 66.6 53.5
401 Glenwood Apartments 360 0 120 24 1.46 80.0 68.7
402 Bakers Plaza 360 3 117 45 1.36 74.9 66.0
403 Monroe Central Point Center 360 3 117 57 1.31 72.8 63.0
404 Hazel Hurst Mobile Home Park 360 1 119 47 1.56 69.1 60.5
405 58th Street Plaza 300 1 119 47 1.36 74.2 60.2
406 Robinwood Apartments 120 1 119 24 3.30 15.3 0.0
407 The Sherwood Apartments 360 0 120 24 1.70 80.0 68.7
408 Wayne Street Apartments 360 0 120 24 1.58 80.0 68.7
</TABLE>
A-2-6
<PAGE>
Annex B
ABN AMRO Statement Date:
LaSalle National Bank Payment Date:
Prior Payment:
Administrator: Record Date:
Ann Geraghty (800) 246-5761
135 S. LaSalle Street Suite 1625 WAC:
Chicago, IL 60674-4107 WAMM:
GMAC Commercial Mortgage Securities, Inc.
GMAC Commercial Mortgage Corporation as Master Servicer
GMAC Commercial Mortgage Corporation as Special Servicer
Mortgage Pass-Through Certificates
Series 1998-C2
ABN AMRO Acct:
================================================================================
Number Of Pages
---------------
Table Of Contents
REMIC Certificate Report
Other Related Information
Mortgage Loan Characteristics
Loan Level Detail
Delinquent Loan Status Report
Historical Loan Modification Report
Historical Loss Estimate Report
REO Status Report
Total Pages Included In This Package
================================================================================
Information is available for this issue from the following sources
- --------------------------------------------------------------------------------
LaSalle Web Site www.lnbabs.com
LaSalle Bulletin Board (714) 282-3990
LaSalle ASAP Fax System (312) 904-2200
ASAP #: 354
Monthly Data File Name: 0354MMYY.EXE
================================================================================
================================================================================
B-1
<PAGE>
ABN AMRO Statement Date:
LaSalle National Bank Payment Date:
Prior Payment:
Administrator: Record Date:
Ann Geraghty (800) 246-5761
135 S. LaSalle Street Suite 1625 WAC:
Chicago, IL 60674-4107 WAMM:
GMAC Commercial Mortgage Securities, Inc.
GMAC Commercial Mortgage Corporation as Master Servicer
GMAC Commercial Mortgage Corporation as Special Servicer
Mortgage Pass-Through Certificates
Series 1998-C2
ABN AMRO Acct:
<TABLE>
<CAPTION>
====================================================================================================================================
Original Opening Principal Principal Negative Closing Interest Interest Pass-Through
Class Face Value(1) Balance Payment Adj. or Loss Amortization Balance Payment Adjustment Rate(2)
CUSIP Per $1,000 Per $1,000 Per $1,000 Per $1,000 Per $1,000 Per $1,000 Per $1,000 Per $1,000 Next Rate(3)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
Total P&I Payment
=============================
</TABLE>
Notes: (1) N denotes notional balance not included in total (2) Interest Paid
minus Interest Adjustment minus Deferred Interest equals Accrual (3)
Estimated
B-2
<PAGE>
ABN AMRO Statement Date:
LaSalle National Bank Payment Date:
Prior Payment:
Administrator: Record Date:
Ann Geraghty (800) 246-5761
135 S. LaSalle Street Suite 1625
Chicago, IL 60674-4107
GMAC Commercial Mortgage Securities, Inc.
GMAC Commercial Mortgage Corporation as Master Servicer
GMAC Commercial Mortgage Corporation as Special Servicer
Mortgage Pass-Through Certificates
Series 1998-C2
ABN AMRO Acct:
Other Related Information
<TABLE>
<CAPTION>
====================================================================================================================================
------------------------------------------------------------------------------------------------------
Accrued Excess Beginning Payment of Ending Yield
Certificate Prepay Interest Unpaid Prior Unpaid Unpaid Maintenance Prepayment
Class Interest Shortfall Interest Interest Interest Premium Premiums
======================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
X
A-1
A-2
A-3
B
C
D
E
F
G
H
J
K
------------------------------------------------------------------------------------------------------
======================================================================================================
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
Advances
Prior Outstanding Current Period Recovered Outstanding
Principal Interest Principal Interest Principal Interest Principal Interest
=======================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Servicer
Trustee:
Fiscal Agent:
-----------------------------------------------------------------------------------------------------------------------
=======================================================================================================================
</TABLE>
================================================================================
B-3
<PAGE>
ABN AMRO Statement Date:
LaSalle National Bank Payment Date:
Prior Payment:
Administrator: Record Date:
Ann Geraghty (800) 246-5761
135 S. LaSalle Street Suite 1625
Chicago, IL 60674-4107
GMAC Commercial Mortgage Securities, Inc.
GMAC Commercial Mortgage Corporation as Master Servicer
GMAC Commercial Mortgage Corporation as Special Servicer
Mortgage Pass-Through Certificates
Series 1998-C2
ABN AMRO Acct:
Other Related Information
================================================================================
-----------------------------------------------------------------------
Servicing Compensation
=======================================================================
Current Period Master Servicing Fees Paid:
Current Period Surveillance Fees Paid:
Current Period Primary Fees Paid:
Current Period Sub Servicer Fees Paid:
Additional Master Servicing Compensation:
Current Period Special Servicing Fees Paid:
Current Period Workout Fees Paid:
Current Period Liquidation Fees Paid:
----------------
================
-----------------------------------------------------------------------
Outstanding Mortgage Loans in Pool
=======================================================================
Number of Outstanding Mortgage Loans in Pool:
Aggregate Stated Principal Balance before Distribution Date:
Aggregate Stated Principal Balance after Distribution Date:
Percentage of Remaining Cut-off Date Principal Balance:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Summary of REO Properties
Principal Date of Final Amount Aggregate Other
# Property Name Date of REO Balance Book Value Recovery of Proceeds Revenue Collected
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
1.
2.
3.
4.
5.
</TABLE>
================================================================================
B-4
<PAGE>
ABN AMRO Statement Date:
LaSalle National Bank Payment Date:
Prior Payment:
Administrator: Record Date:
Ann Geraghty (800) 246-5761
135 S. LaSalle Street Suite 1625
Chicago, IL 60674-4107
GMAC Commercial Mortgage Securities, Inc.
GMAC Commercial Mortgage Corporation as Master Servicer
GMAC Commercial Mortgage Corporation as Special Servicer
Mortgage Pass-Through Certificates
Series 1998-C2
ABN AMRO Acct:
Other Related Information
================================================================================
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
Summary of Appraisal Reductions
Principal Appraisal Appraisal Date of
# Property Name Loan Number Balance Reduction Amt. Date Reduction
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1.
2.
3.
4.
5.
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
Summary of Repurchased, Liquidated or Disposed Loans
Principal Date of Final Amount Aggregate Other
# Property Name Loan Number Balance Book Value Liquidation of Proceeds Rev. Collected
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
1.
2.
3.
4.
5.
</TABLE>
================================================================================
B-5
<PAGE>
ABN AMRO Statement Date:
LaSalle National Bank Payment Date:
Prior Payment:
Administrator: Record Date:
Ann Geraghty (800) 246-5761
135 S. LaSalle Street Suite 1625
Chicago, IL 60674-4107
GMAC Commercial Mortgage Securities, Inc.
GMAC Commercial Mortgage Corporation as Master Servicer
GMAC Commercial Mortgage Corporation as Special Servicer
Mortgage Pass-Through Certificates
Series 1998-C2
ABN AMRO Acct:
Other Related Information
================================================================================
Number of loans which have had their maturity dates extended: 0
Stated principal balance outstanding of loans which have had
their maturity dates extended: 0.00
Weighted average extension period (in months) of loans which
have had their maturity dates extended: 0
Number of loans in the process of having their maturity dates
extended: 0
Stated principal balance of loans in the process of having their
maturity dates extended: 0.00
Weighted average anticipated extension period of loans in the
process of being extended: 0
Cut-off principal balance of paid off loans that never experienced
maturity date extensions: 0.00
Cut-off principal balance of paid off loans that experienced maturity
date extensions: 0.00
Weighted average extension period of paid off loans that experienced
maturity date extensions: 0
Number of loans in the process of having their maturity dates
further extended: 0
Cut-off principal balance of loans in the process of having their
maturity dates further extended: 0.00
Weighted average extension period of loans in the process of having
their maturity date further extended: 0
================================================================================
B-6
<PAGE>
ABN AMRO Statement Date:
LaSalle National Bank Payment Date:
Prior Payment:
Administrator: Record Date:
Ann Geraghty (800) 246-5761
135 S. LaSalle Street Suite 1625
Chicago, IL 60674-4107
GMAC Commercial Mortgage Securities, Inc.
GMAC Commercial Mortgage Corporation as Master Servicer
GMAC Commercial Mortgage Corporation as Special Servicer
Mortgage Pass-Through Certificates
Series 1998-C2
ABN AMRO Acct:
Pool Total
Distribution of Principal Balances
- --------------------------------------------------------------------------------
Current Scheduled Number Scheduled Based on
Balances of Loans Balance Balance
================================================================================
$0 to $100,000
$100,000 to $250,000
$250,000 to $500,000
$500,000 to $750,000
$750,000 to $1,000,000
$1,000,000 to $2,000,000
$2,000,000 to $3,000,000
$3,000,000 to $4,000,000
$4,000,000 to $5,000,000
$5,000,000 to $6,000,000
$6,000,000 to $7,000,000
$7,000,000 to $8,000,000
$8,000,000 to $9,000,000
$9,000,000 to $10,000,000
$10,000,000 to $11,000,000
$11,000,000 to $12,000,000
$12,000,000 to $13,000,000
$13,000,000 to $14,000,000
$14,000,000 to $15,000,000
$15,000,000 & Above
================================================================================
Total
- --------------------------------------------------------------------------------
Average Scheduled Balance is
Maximum Scheduled Balance is
Minimum Scheduled Balance is
Distribution of Property Types
- --------------------------------------------------------------------------------
Number Scheduled Based on
Property Types of Loans Balance Balance
================================================================================
Retail
Multifamily
Office
Industrial
Lodging
Health Care
Mixed Use
Self Storage
Mobile Home
Other
================================================================================
Total
- --------------------------------------------------------------------------------
Distribution of Mortgage Interest Rates
- --------------------------------------------------------------------------------
Current Mortgage Number Scheduled Based on
Interest Rate of Loans Balance Balance
================================================================================
7.500% or less
7.500% to 7.750%
7.750% to 8.000%
8.000% to 8.250%
8.250% to 8.500%
8.500% to 8.750%
8.750% to 9.000%
9.000% to 9.250%
9.250% to 9.500%
9.500% to 9.750%
9.750% to 10.000%
10.000% to 10.250%
10.250% to 10.500%
10.500% to 10.750%
10.750% & Above
================================================================================
Total
- --------------------------------------------------------------------------------
W/Avg Mortgage Interest Rate is
Minimum Mortgage Interest Rate is
Maximum Mortgage Interest Rate is
Geographic Distribution
- --------------------------------------------------------------------------------
Number Scheduled Based on
Geographic Location of Loans Balance Balance
================================================================================
================================================================================
Total
- --------------------------------------------------------------------------------
B-7
<PAGE>
ABN AMRO Statement Date:
LaSalle National Bank Payment Date:
Prior Payment:
Administrator: Record Date:
Ann Geraghty (800) 246-5761
135 S. LaSalle Street Suite 1625
Chicago, IL 60674-4107
GMAC Commercial Mortgage Securities, Inc.
GMAC Commercial Mortgage Corporation as Master Servicer
GMAC Commercial Mortgage Corporation as Special Servicer
Mortgage Pass-Through Certificates
Series 1998-C2
ABN AMRO Acct:
Pool Total
Loan Seasoning
- --------------------------------------------------------------------------------
Number Scheduled Based on
Number of Years of Loans Balance Balance
================================================================================
1 year or less
1+ to 2 years
2+ to 3 years
3+ to 4 years
4+ to 5 years
5+ to 6 years
6+ to 7 years
7+ to 8 years
8+ to 9 years
9+ to 10 years
10 years or more
================================================================================
Total
- --------------------------------------------------------------------------------
Weighted Average Seasoning is
Distribution of Amortization Type
- --------------------------------------------------------------------------------
Number Scheduled Based on
Amortization Type of Loans Balance Balance
================================================================================
Fully Amortizing
Amortizing Balloon
Interest Only / Balloon
================================================================================
Total
- --------------------------------------------------------------------------------
Distribution of Remaining Term
Fully Amortizing
- --------------------------------------------------------------------------------
Fully Amortizing Number Scheduled Based on
Mortgage Loans of Loans Balance Balance
================================================================================
60 months or less
61 to 120 months
121 to 180 months
181 to 240 months
241 to 360 months
- --------------------------------------------------------------------------------
Total
- --------------------------------------------------------------------------------
Weighted Average Months to Maturity is
Distribution of Remaining Term
Balloon Loans
- --------------------------------------------------------------------------------
Balloon Number Scheduled Based on
Mortgage Loans of Loans Balance Balance
================================================================================
12 months or less
13 to 24 months
25 to 36 months
37 to 48 months
49 to 60 months
61 to 120 months
121 to 180 months
181 to 240 months
================================================================================
Total
- --------------------------------------------------------------------------------
Weighted Average Months to Maturity is
Distribution of DSCR
- --------------------------------------------------------------------------------
Debt Service Number Scheduled Based on
Coverage Ratio (1) of Loans Balance Balance
================================================================================
0.500 or less
0.500 to 0.625
0.625 to 0.750
0.750 to 0.875
0.875 to 1.000
1.000 to 1.125
1.125 to 1.250
1.250 to 1.375
1.375 to 1.500
1.500 to 1.625
1.625 to 1.750
1.750 to 1.875
1.875 to 2.000
2.000 to 2.125
2.125 & above
Unknown
================================================================================
Total
- --------------------------------------------------------------------------------
Weighted Average Debt Service Coverage Ratio is
NOI Aging
- --------------------------------------------------------------------------------
Number Scheduled Based on
NOI Date of Loans Balance Balance
================================================================================
1 year or less
1 to 2 years
2 Years or More
Unknown
================================================================================
Total
- --------------------------------------------------------------------------------
(1) Debt Service Coverage Ratios are calculated as described in the
prospectus, values are updated periodically as new NOI figures became
available from borrowers on an asset level.
Neither the Trustee, Servicer, Special Servicer or Underwriter makes any
representation as to the accuracy of the data provided by the borrower for
this calculation.
B-8
<PAGE>
ABN AMRO Statement Date:
LaSalle National Bank Payment Date:
Prior Payment:
Administrator: Record Date:
Ann Geraghty (800) 246-5761
135 S. LaSalle Street Suite 1625
Chicago, IL 60674-4107
GMAC Commercial Mortgage Securities, Inc.
GMAC Commercial Mortgage Corporation as Master Servicer
GMAC Commercial Mortgage Corporation as Special Servicer
Mortgage Pass-Through Certificates
Series 1998-C2
ABN AMRO Acct:
Pool Total
Distribution of Maximum Rates
- --------------------------------------------------------------------------------
Number Scheduled Based on
Maximum Rates of Loans Balance Balance
================================================================================
No Maximum
0.01% to 6.50%
6.51% to 7.00%
7.01% to 7.50%
7.51% to 8.00%
8.01% to 8.50%
8.51% to 9.00%
9.01% to 9.50%
9.51% to 10.00%
10.01% to 10.50%
10.51% to 11.00%
11.01% to 11.50%
11.51% to 12.00%
12.01% & above
Fixed Rate Mortgage
================================================================================
Total
- --------------------------------------------------------------------------------
Weighted Average for Mtge with a Maximum Rate is
Distribution of Payment Adjustment
- --------------------------------------------------------------------------------
Payment Adjustment Number Scheduled Based on
Frequency Loans Balance Balance
================================================================================
Three Month
Six Month
Fixed Rate Mortgage
================================================================================
Total
- --------------------------------------------------------------------------------
Distribution of Indices of Mortgage Loans
- --------------------------------------------------------------------------------
Number Scheduled Based on
Indices of Loans Balance Balance
================================================================================
3 Month LIBOR
6 Month LIBOR
Fixed Rate Mortgage
================================================================================
Total
- --------------------------------------------------------------------------------
Distribution of Mortgage Loan Margins
- --------------------------------------------------------------------------------
Number Scheduled Based on
Mortgage Loan Margins Loans Balance Balance
================================================================================
No Margin
0.010% to 2.500%
2.510% to 2.625%
2.635% to 2.750%
2.760% to 2.875%
2.885% to 3.000%
3.010% to 3.125%
3.135% to 3.250%
3.260% to 3.375%
3.385% to 99.000%
Fixed Rate Mortgage
================================================================================
Total
- --------------------------------------------------------------------------------
Weighted Average for Mtge with a Margin is
Distribution of Minimum Rates
- --------------------------------------------------------------------------------
Number Scheduled Based on
Minimum Rates (1) of Loans Balance Balance
================================================================================
No Minimum
0.010% to 2.000%
2.010% to 2.125%
2.135% to 2.250%
2.260% to 2.375%
2.385% to 2.500%
2.510% to 2.625%
2.635% to 2.750%
2.760% to 2.875%
2.885% to 3.000%
3.010% to 3.125%
3.135% to 3.250%
3.260% to 3.375%
3.385% & Above
Fixed Rate Mortgage
================================================================================
Total
- --------------------------------------------------------------------------------
Weighted Average for Mtge with a Minimum Rate is
Distribution of Interest Adjustment
- --------------------------------------------------------------------------------
Interest Adjustment Number Scheduled Based on
Frequency Loans Balance Balance
================================================================================
Three Month
Six Month
Fixed Rate Mortgage
================================================================================
Total
- --------------------------------------------------------------------------------
(1) For adjustable mortgage loans where a minimum rate does not exist the
gross margin was used.
B-9
<PAGE>
ABN AMRO Statement Date:
LaSalle National Bank Payment Date:
Prior Payment:
Administrator: Record Date:
Ann Geraghty (800) 246-5761
135 S. LaSalle Street Suite 1625
Chicago, IL 60674-4107
GMAC Commercial Mortgage Securities, Inc.
GMAC Commercial Mortgage Corporation as Master Servicer
GMAC Commercial Mortgage Corporation as Special Servicer
Mortgage Pass-Through Certificates
Series 1998-C2
ABN AMRO Acct:
<TABLE>
<CAPTION>
Loan Level Detail
====================================================================================================================================
Property Operating Ending Loan
Disclosure Type Maturity Statement Principal Note Scheduled Prepayment Status
Control # Group Code Date DSCR Date State Balance Rate P&I Prepayment Date Code (1)
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
====================================================================================================================================
</TABLE>
* NOI and DSCR, if available and reportable under the terms of the trust
agreement, are based on information obtained from the related borrower,
and no other party to the agreement shall be held liable for the accuracy
or methodology used to determine such figures.
- --------------------------------------------------------------------------------
(1) Legend: A. P&I Adv - in Grace Period
B. P&I Adv - < one month delinq
1. P&I Adv - delinquent 1 month
2. P&I Adv - delinquent 2 months
3. P&I Adv - delinquent 3+ months
4. Mat. Balloon/Assumed P&I
5. Prepaid in Full
6. Specially Serviced
7. Foreclosure
8. Bankruptcy
9. REO
10. DPO
11. Modification
================================================================================
B-10
<PAGE>
GMAC Commercial Mortgage Securities, Inc.
Series 1998-C2
DELINQUENT LOAN STATUS REPORT
as of ___________________
<TABLE>
<CAPTION>
===============================================================================================================================
Other
Prospectus Short Name Property City State Sq Ft or Paid Scheduled Total P&I Total Advances Total
ID (When Type Units Thru Loan Advances Expenses To (Taxes & Exposure
Appropriate) Date Balance To Date Date Escrow)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
90 + DAYS DELINQUENT
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
60 DAYS DELINQUENT
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
30 DAYS DELINQUENT
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
Current & at Special Servicer
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
FCL - Foreclosure
- -------------------------------------------------------------------------------------------------------------------------------
LTM - Latest 12 Months either Last Annual or Trailing 12 months
===============================================================================================================================
<CAPTION>
=====================================================================================================
Prospectus Short Name Current Current Maturity LTM LTM LTM ***Cap Value using
ID (When Monthly Interest Date NOI NOI DSCR Rate NOI & Cap
Appropriate) P&I Rate Date Assigned Rate
- -----------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
90 + DAYS DELINQUENT
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
60 DAYS DELINQUENT
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
30 DAYS DELINQUENT
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
Current & at Special Servic
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
=====================================================================================================
</TABLE>
* Workout Strategy should match the CSSA Loan file using abreviated words in
place of a code number such as (FCL - In Foreclosure, MOD - Modification,
DPO - Discount Payoff, NS - Note Sale, BK - Bankrupcy, PP - Payment Plan)
It is possible to combine the status codes if the loan is going in more
than one direction. (i.e. FCL/Mod, BK/Mod, BK/FCL/DPO)
** App - Appraisal, BPO - Broker opinion, Int. - Internal Value
*** How to determine the cap rate is agreed upon by Underwriter and servicers
- to be provided by a third party.
B-11
<PAGE>
GMAC Commercial Mortgage Securities, Inc.
Series 1998-C2
DELINQUENT LOAN STATUS REPORT
as of ___________________
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Appraisal Total
Valuation BPO or Loss using Estimated Appraisal Prospectus Short Name Property Transfer
Date Internal 90% Appr. or Recovery % Reduction ID (when Type City State Date
Value** BPO(f) Realized appropriate)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
===============================================================================================================================
</TABLE>
- -------------------------------------------------------------------------------
Appraisal
Valuation BPO or Resolution FCL Expected Workout
Date Internal Date Start FCL Sale Strategy Comments
Value** Date Date
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
===============================================================================
B-12
<PAGE>
GMAC Commercial Mortgage Securities, Inc.
Series 1998-C2
HISTORICAL LOAN MODIFICATION REPORT
as of _________________
<TABLE>
<CAPTION>
====================================================================================================================================
Balance
When Balance at the
Mod / Sent to Effective Date # Mths
Prospectus Extension Effect Special of Old for Rate New Old Old New
ID City State Flag Date Servicer Rehabilitation Rate Change Rate P&I Maturity Maturity
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
THIS REPORT IS HISTORICAL
- ------------------------------------------------------------------------------------------------------------------------------------
Information is as of modification. Each line it should not change in the future. Only new modifications should be added.
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
Total For All Loans:
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Total For Loans in Current Month:
- ------------------------------------------------------------------------------------------------------------------------------------
# of Loans $ Balance
- ------------------------------------------------------------------------------------------------------------------------------------
Modifications:
- ------------------------------------------------------------------------------------------------------------------------------------
Maturity Date Extentions:
==========================================================================----------------------------------------------------------
Total:
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
* The information in these columns is from a particular point in time and should not change on this report once assigned.
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Actual principal loss taken by bonds
- ------------------------------------------------------------------------------------------------------------------------------------
(2) Expected future loss due to a rate reduction. This is just an estimate calculated at the time of the modification.
====================================================================================================================================
</TABLE>
==========================================================
(2)Est.
Future
Total # Interest
Mths (1) Loss to
for Realized Trust $
Prospectus Change Loss to (Rate
ID of Mod Trust $ Reduction) COMMENT
==========================================================
- ----------------------------------------------------------
- ----------------------------------------------------------
- ----------------------------------------------------------
- ----------------------------------------------------------
==========================================================
- ----------------------------------------------------------
- ----------------------------------------------------------
- ----------------------------------------------------------
- ----------------------------------------------------------
- ----------------------------------------------------------
- ----------------------------------------------------------
- ----------------------------------------------------------
- ----------------------------------------------------------
- ----------------------------------------------------------
- ----------------------------------------------------------
- ----------------------------------------------------------
==========================================================
B-13
<PAGE>
GMAC Commercial Mortgage Securities, Inc.
Series 1998-C2
HISTORICAL LOSS ESTIMATE REPORT (REO-SOLD or DISCOUNTED PAYOFF)
as of _________________
<TABLE>
<CAPTION>
====================================================================================================================================
Latest
Short Name % Appraisal or Net Amt
Prospectus (When Property Received Brokers Effect Date Received Scheduled
ID Appropriate) Type City State From Sale Opinion of Sale Sale Price from Sale Balance
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
THIS REPORT IS HISTORICAL
- ------------------------------------------------------------------------------------------------------------------------------------
All information in from the liquidation date and does not need to be updated.
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
Total all Leans:
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Current Month Only:
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
<CAPTION>
============================================================================================================
Prospectus Total P&I Total Servicing Actual Losses Date Loss Minor Adj to
ID Advanced Expenses Fees Expense Net Proceeds Passed thru Passed thru Trust
============================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
============================================================================================================
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
============================================================================================================
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
============================================================================================================
</TABLE>
================================================================================
Date Minor Total Loss Loss % of
Prospectus Adj Passed with Schedule
ID thru Adjustment Balance
================================================================================
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
B-14
<PAGE>
GMAC Commercial Mortgage Securities, Inc.
Series 1998-C2
REO STATUS REPORT
as of _________________
<TABLE>
<CAPTION>
====================================================================================================================================
Short
Name Total Other
Pro- (When Prop Sq Ft Paid Scheduled P&I Total Advances Current
spectus Appropri erty City State or Thru Loan Advances Expenses (Taxes & Total Monthly Maturity
ID ate) Type Units Date Balance To Date To Date Escrow) Exposure P&I Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
<CAPTION>
====================================================================================================================================
Value Loss
Cap using Appraisal using Total
Pro- LTM LTM Rate NOI & BPO or 92% Appraisal REO
spectus NOI NOI / Assign Valuation Cap Internal Appr. Estimated Reduction Transfer Acquisi
ID Date DSC *** Date Rate Value** or BPO(f) Recovery % Realized Date tion Date
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
</TABLE>
===============================================================================
Pro- Pending
spectus Resolution
ID Date Comments
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(1) Use the following codes; App. = Appraisal, BPO - Brokers Opinion,
Int - Internal Value
- -------------------------------------------------------------------------------
*** How to dtermine the cap rate is agreed upon by Underwriter and servicers -
to be provided by a third party.
===============================================================================
B-15
<PAGE>
GMAC Commercial Mortgage Securities, Inc.
Series 1998-C2
SERVICER WATCH LIST
as of _________________
<TABLE>
<CAPTION>
====================================================================================================================================
S4 S55 S61 S57 S58 P7 P8 P11 P54
- ------------------------------------------------------------------------------------------------------------------------------------
Short Name Scheduled Paid
Prospectus (When Property Loan Thru Maturity LTM*
ID Appropriate) Type City State Balance Date Date DSCR Comment / Reason on Watch List
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
List all loans on watch list and reason sorted in decending balance order.
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Total: $
- ------------------------------------------------------------------------------------------------------------------------------------
*LTM - Last 12 months either trailing or last annual
====================================================================================================================================
</TABLE>
B-16
<PAGE>
GMAC Commercial Mortgage Securities, Inc.
Series 1998-C2
COMPARATIVE FINANCIAL STATUS REPORT
as of ______________
<TABLE>
<CAPTION>
==================================================================================================
Original Underwriting Information
------------------------------------
Basis Year
-----------------
Last
Property Scheduled Paid Annual Financial %
Prospectus State Inspect Loan Thru Debt Info as of Occ Total $
ID City Date Balance Date Service Date Revenue NOI DSCR
- --------------------------------------------------------------------------------------------------
yy/mm yy/mm
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
List all loans currently in deal with or with out information largest to smallest loan
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Total: $ $ WA $ $ WA
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Received
- --------------------------------------------------------------------------------------------------
Financial Information: Loans Balance
- --------------------------------------------------------------------------------------------------
# % $ %
- --------------------------------------------------------------------------------------------------
Current Full Year:
- --------------------------------------------------------------------------------------------------
Current Full Yr. received with DSC < 1:
- --------------------------------------------------------------------------------------------------
Prior Full Year:
- --------------------------------------------------------------------------------------------------
Prior Full Yr. received with DSC < 1:
- --------------------------------------------------------------------------------------------------
Quarterly Financials:
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
(1) DSC calculated using NOI / Debt Service
- --------------------------------------------------------------------------------------------------
(2) Net change should compare the latest year to the underwriting year
==================================================================================================
<CAPTION>
==================================================================================================
2nd Preceding Annual Operating Preceeding Annual Operating Info
- --------------------------------------------------------------------------------------------------
as of _____________ Normalized as of __________ Normalized
- --------------------------------------------------------------------------------------------------
Financial Financial
Info Info
as of % Total $ as of % Total $
Date Occ Revenue NOI DSCR Date Occ Revenue NOI DSCR
- --------------------------------------------------------------------------------------------------
yy/mm yy/mm
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Total: WA $ $ WA WA $ $ WA
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Required
- --------------------------------------------------------------------------------------------------
Financial Information: Loans Balance
- --------------------------------------------------------------------------------------------------
# % $ %
- --------------------------------------------------------------------------------------------------
Current Full Year:
- --------------------------------------------------------------------------------------------------
Current Full Yr. received with DSC < 1:
- --------------------------------------------------------------------------------------------------
Prior Full Year:
- --------------------------------------------------------------------------------------------------
Prior Full Yr. received with DSC < 1:
- --------------------------------------------------------------------------------------------------
Quarterly Financials:
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
(1) DSC calculated using NOI / Debt Service
- --------------------------------------------------------------------------------------------------
(2) Net change should compare the latest year to the underwriting year
==================================================================================================
<CAPTION>
==================================================================================================
YTD or Trailing Financial Information Net Change
- --------------------------------------------------------------------------------------------------
Month Reported "Actual Preceding & Basis
-----------------------------------------------------------------------------------------
FS FS %
Start End Total $ % % Total $
Date Date Revenue NOI DSC Occ Rev. DSC
- --------------------------------------------------------------------------------------------------
yy/mm yy/mm
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Total: WA $ $ WA WA $ WA
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Financial Information:
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
Current Full Year:
- --------------------------------------------------------------------------------------------------
Current Full Yr. received with DSC < 1:
- --------------------------------------------------------------------------------------------------
Prior Full Year:
- --------------------------------------------------------------------------------------------------
Prior Full Yr. received with DSC < 1:
- --------------------------------------------------------------------------------------------------
Quarterly Financials:
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
(1) DSC calculated using NOI / Debt Service
- --------------------------------------------------------------------------------------------------
(2) Net change should compare the latest year to the underwriting year
==================================================================================================
</TABLE>
B-17
<PAGE>
GMAC Commercial Mortgage Securities, Inc.
Series 1998-C2
OPERATING STATEMENT ANALYSIS REPORT
as of _________________
<TABLE>
<S> <C>
PROPERTY OVERVIEW
---------------
Control Number
---------------------------
Current Balance/Paid to Date
-------------------------------------------------------------------------------------------
Property Name
-------------------------------------------------------------------------------------------
Property Type
-------------------------------------------------------------------------------------------
Property Address, City, State
-------------------------------------------------------------------------------------------
Net Rentable Square Feet
---------------------------
Year Built/Year Renovated
---------------------------
<CAPTION>
---------------------------------------------------------------
Year of Operations Underwriting 1993 1994 1995 YTD
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Occupancy Rate *
---------------------------------------------------------------
Average Rental Rate
---------------------------------------------------------------
* Occupancy rates are year end or the ending date of the financial statement for the period.
<CAPTION>
INCOME: No. of Mos.
-----------
Number of Mos. Annualized Prior Year Current Yr.
-------------------------------------------------------------------------------------------
Period Ended Underwriting 1993 1994 1995 1996 YTD** 1995-Base 1995-1994
Statement Classification Base Line Normalized Normalized Normalized as of / /96 Variance Variance
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Rental Income (Category 1)
-------------------------------------------------------------------------------------------
Rental Income (Category 2)
-------------------------------------------------------------------------------------------
Rental Income (Category 3)
-------------------------------------------------------------------------------------------
Pass Through/Escalations
-------------------------------------------------------------------------------------------
Other Income
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Effective Gross Income $0.00 $0.00 $0.00 $0.00 $0.00 % %
-------------------------------------------------------------------------------------------
Normalized - Full year Financial statements that have been reviewed by the underwriter or
Servicer ** Servicer will not be expected to "Normalize" these YTD numbers.
OPERATING EXPENSES:
-------------------------------------------------------------------------------------------
Real Estate Taxes
-------------------------------------------------------------------------------------------
Property Insurance
-------------------------------------------------------------------------------------------
Utilities
-------------------------------------------------------------------------------------------
Repairs and Maintenance
-------------------------------------------------------------------------------------------
Management Fees
-------------------------------------------------------------------------------------------
Payroll & Benefits Expense
-------------------------------------------------------------------------------------------
Advertising & Marketing
-------------------------------------------------------------------------------------------
Professional Fees
-------------------------------------------------------------------------------------------
Other Expenses
-------------------------------------------------------------------------------------------
Ground Rent
-------------------------------------------------------------------------------------------
Total Operating Expenses $0.00 $0.00 $0.00 $0.00 $0.00 % %
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Operating Expense Ratio
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Net Operating Income $0.00 $0.00 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Leasing Commissions
-------------------------------------------------------------------------------------------
Tenant Improvements
-------------------------------------------------------------------------------------------
Replacement Reserve
-------------------------------------------------------------------------------------------
Total Capital Items $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
N.O.I. After Capital Items $0.00 $0.00 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Debt Service (per Servicer) $0.00 $0.00 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------
Cash Flow after debt service $0.00 $0.00 $0.00 $0.00 $0.00
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
(1) DSCR: (NOI/Debt Service)
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
DSCR: (after reserves\Cap exp.)
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Source of Financial Data:
-------------------------------------------------------------------------------------------
(ie. operating statements, financial statements, tax return, other)
</TABLE>
Notes and Assumptions:
================================================================================
The years shown above will roll always showing a three year history. 1995 is the
current year financials; 1994 is the prior year financials.
This report may vary depending on the property type and because of the way
information may vary in each borrowers statement.
Rental Income need to be broken down whenever possible differently for each
property type as follows: Retail: 1) Base Rent 2)Percentage rents on cashflow
Hotel: 1)Room Revenue 2)Food/Beverage Nursing Home: 1)Private 2) Medicaid
3) Medicare
Income: Comment
Expense: Comment
Capital Items: Comment
(1) Used in the Comparative Financial Status Report
B-18
<PAGE>
GMAC Commercial Mortgage Securities, Inc.
Series 1998-C2
NOI ADJUSTMENT WORKSHEET for "year"
as of _________________
<TABLE>
<S> <C>
PROPERTY OVERVIEW
---------
Control Number
----------------------
Current Balance/Paid to Date
--------------------------------------------------------------------------------------------
Property Name
--------------------------------------------------------------------------------------------
Property Type
--------------------------------------------------------------------------------------------
Property Address, City, State
--------------------------------------------------------------------------------------------
Net Rentable Square Feet
----------------------
Year Built/Year Renovated
<CAPTION>
----------------------------------
Year of Operations Borrower Adjustment Normalized
<S> <C> <C> <C>
----------------------------------
Occupancy Rate *
----------------------------------
Average Rental Rate
----------------------------------
* Occupancy rates are year end or the ending date of the financial statement for the period.
INCOME:
Number of Mos.Annualized "Year"
<CAPTION>
--------------------------------------------------------
Period Ended Borrower Adjustment Normalized
Statement Classification Actual
--------------------------------------------------------
<S> <C> <C> <C>
Rental Income (Category 1)
--------------------------------------------------------
Rental Income (Category 2)
--------------------------------------------------------
Rental Income (Category 3)
--------------------------------------------------------
Pass Throughs/Escalations
--------------------------------------------------------
Other Income
--------------------------------------------------------
--------------------------------------------------------
Effective Gross Income $0.00 $0.00 $0.00
--------------------------------------------------------
Normalized - Full year Financial statements that have been reviewed by the underwriter or
Servicer
OPERATING EXPENSES:
--------------------------------------------------------
Real Estate Taxes
--------------------------------------------------------
Property Insurance
--------------------------------------------------------
Utilities
--------------------------------------------------------
Repairs and Maintenance
--------------------------------------------------------
Management Fees
--------------------------------------------------------
Payroll & Benefits Expense
--------------------------------------------------------
Advertising & Marketing
--------------------------------------------------------
Professional Fees
--------------------------------------------------------
Other Expenses
--------------------------------------------------------
Ground Rent
--------------------------------------------------------
Total Operating Expenses $0.00 $0.00 $0.00
--------------------------------------------------------
--------------------------------------------------------
Operating Expense Ratio
--------------------------------------------------------
--------------------------------------------------------
Net Operating Income $0.00 $0.00 $0.00
--------------------------------------------------------
--------------------------------------------------------
Leasing Commissions
--------------------------------------------------------
Tenant Improvements
--------------------------------------------------------
Replacement Reserve
--------------------------------------------------------
Total Capital Items $0.00 $0.00 $0.00
--------------------------------------------------------
--------------------------------------------------------
N.O.I. After Capital Items $0.00 $0.00 $0.00
--------------------------------------------------------
--------------------------------------------------------
Debt Service (per Servicer) $0.00 $0.00 $0.00
--------------------------------------------------------
Cash Flow after debt service $0.00 $0.00 $0.00
--------------------------------------------------------
--------------------------------------------------------
(1)DSCR: (NOI/Debt Service)
--------------------------------------------------------
--------------------------------------------------------
DSCR: (after reserves\Cap exp.)
--------------------------------------------------------
--------------------------------------------------------
Source of Financial Data:
--------------------------------------------------------
(ie. operating statements, financial statements, tax return, other)
</TABLE>
Notes and Assumptions:
================================================================================
This report should be completed by the Servicer for any "Normalization" of the
Borrowers numbers.
The "Normalized" column is used in the Operating Statement Analysis Report.
This report may vary depending on the property type and because of the way
information may vary in each borrowers statement.
Income: Comments
Expense: Comments
Capital Items: Comments
(1) Used in the Comparative Financial Status Report
B-19
<PAGE>
GMAC
Commercial ANNEX C
Mortgage
LEHMAN BROTHERS
GMAC Commercial Mortgage Securities Inc.
Mortgage Pass-Through Certificates
Series 1998-C2
Preliminary Timeline of Events
================================================================================
Date Event
================================================================================
Week of August 3rd Structural & Collateral Term Sheets available
- --------------------------------------------------------------------------------
Week of August 10th Red Herrings available
- --------------------------------------------------------------------------------
Week of August 17th Rating Agency and Underwriter Investor Calls
================================================================================
Week of August 17th Pricing
- --------------------------------------------------------------------------------
Thursday, August 27th Settlement Date
- --------------------------------------------------------------------------------
Rating Agency Call
E.S.T.
<TABLE>
<CAPTION>
Investor Call Replay until August 28th, 1998, 5PM EST
======================================= =========================================
Dial in Number Passcode Dial in Number Passcode
======================================= =========================================
<S> <C> <C> <C> <C>
Domestic
--------------------------------------- -----------------------------------------
International
======================================= =========================================
</TABLE>
Rating Agency Call
E.S.T.
<TABLE>
<CAPTION>
Investor Call Replay until August 28th, 1998, 5PM EST
======================================= =========================================
Dial in Number Passcode Dial in Number Passcode
======================================= =========================================
<S> <C> <C> <C> <C>
Domestic
--------------------------------------- -----------------------------------------
International
======================================= =========================================
</TABLE>
Underwriter Investor Call
E.S.T.
<TABLE>
<CAPTION>
Investor Call Replay until August 28th, 1998, 5PM EST
======================================= =========================================
Dial in Number Passcode Dial in Number Passcode
======================================= =========================================
<S> <C> <C> <C> <C>
Domestic
--------------------------------------- -----------------------------------------
International
======================================= =========================================
</TABLE>
Page 1/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Structural and Collateral Term Sheet
GMAC Commercial Mortgage Securities Inc.
Mortgage Pass-Through Certificates
Series 1998-C2
$2.31 Billion
(Approximate)
Offered Certificates
[GRAPHIC OMITTED]
% of Mortgage Pool by Cut-off Date Balance
LEHMAN BROTHERS DEUTSCHE BANK SECURITIES
Page 2/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Structural and Collateral Term Sheet (continued):
GMAC Commercial Mortgage Securities Inc.
Mortgage Pass-Through Certificates
Series 1998-C2
================================================================================
------------------------------------------
Class A-1
---------------------------
Class A-2 Class X
---------------------------
Class B
---------------------------
Class C
---------------------------
Class D
---------------------------
Class E
---------------------------
Class F
---------------------------
Class G
---------------------------
Class H
---------------------------
Class J
---------------------------
Class K
---------------------------
Class L
---------------------------
Class M
---------------------------
Class N
------------------------------------------
================================================================================
<TABLE>
<CAPTION>
==================================================================================================
Original Avg Principal Legal
Class Face Rating(1) Description Coupon Life (2) Window (2) Status
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 AAA Fixed Public
- --------------------------------------------------------------------------------------------------
A-2 AAA Fixed Public
- --------------------------------------------------------------------------------------------------
X (3) AAA WAC IO (4) Public
- --------------------------------------------------------------------------------------------------
B AA Fixed Public
- --------------------------------------------------------------------------------------------------
C A Fixed Public
- --------------------------------------------------------------------------------------------------
D BBB Fixed Public
- --------------------------------------------------------------------------------------------------
E BBB- Fixed Public
- --------------------------------------------------------------------------------------------------
F Not Offered Fixed Private, 144A
- -------------------------------------------------------------------------------------------------
G Not Offered Fixed Private, 144A
- --------------------------------------------------------------------------------------------------
H Not Offered Fixed Private, 144A
- --------------------------------------------------------------------------------------------------
J Not Offered Fixed Private, 144A
- --------------------------------------------------------------------------------------------------
K Not Offered Fixed Private, 144A
- --------------------------------------------------------------------------------------------------
L Not Offered Fixed Private, 144A
- --------------------------------------------------------------------------------------------------
M Not Offered Fixed Private, 144A
- --------------------------------------------------------------------------------------------------
N Not Offered Fixed Private, 144A
==================================================================================================
Total
==================================================================================================
</TABLE>
(1) Anticipated rating.
(2) Assuming among other things, 0% CPR, no losses and that ARD loans pay off
on their Anticipated Repayment Date. Expressed in years.
(3) Represents notional amount on Class X.
(4) Represents average life of notional amount on Class X.
Page 3/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Structural and Collateral Term Sheet (continued):
Certain Offering Points
o Newly Originated Collateral. The collateral consists of Mortgage Loans
with a principal balance (as of the Due Date for each Mortgage Loan
occurring in August 1998) of approximately $2.56 billion. The Mortgage
Loans were originated by an affiliate of Lehman Brothers, or its approved
conduit originators (51.5%, by balance) and GMAC Commercial Mortgage
(45.7%, by balance). 15 loans (2.8%) were purchased by either Lehman
Brothers or GMAC Commercial Mortgage.
o Call Protection. 100% of the Mortgage Loans contain call protection
provisions. As of the Cut Off Date, 92.4% of the Mortgage Loans provide
for initial lockout period followed by i) defeasance; or ii) yield
maintenance; iii) percentage penalty and/or iv) an open period generally 3
to 6 months. The weighted average lockout and defeasance period for all
loans is 9.8 years. The Mortgage Loans are generally prepayable without
penalty between zero to six months from Mortgage Loan maturity or
Anticipated Repayment Date ("ARD").
o Weighted average lock-out and treasury defeasance of 9.8 years.
o No loan delinquent 30 days or more as of the Cut-off Date.
o $6,248,188 average loan balance as of the Cut-off Date.
o 1.65x Weighted Average Debt Service Coverage Ratio ("DSCR") as of the
Cut-off Date.
o 66.0% Weighted Average Loan to Value ("LTV") as of the Cut-off Date.
o Public Company Sponsorship. 16.2% of the Mortgage Loans have borrowers the
principal of which is a public company.
o Property Type Diversification. 29.9% Multifamily*, 25.4% Retail (79.6%
Anchored and 20.4% Unanchored),11.2% Office, 9.3% Hotel, 6.2% Health Care,
5.3% Office/Industrial, 4.6% Credit Tenant Lease ("CTL"), 4.0% Industrial,
1.9% Self Storage, 1.8% Mixed Use, and 0.3% Other. *Includes Manufactured
Housing.
o Geographic Distribution. California (16.8%), New Jersey (6.6%), Florida
(5.3%), Texas (5.1%), Connecticut (4.3%),Pennsylvania (4.3%), New York
(4.2%); all other states less than 4% each.
o Monthly Investor Reporting. Updated collateral summary information will be
part of the monthly remittance report in addition to detailed P&I payment
and delinquency information. Quarterly NOI and Occupancy information to
the extent delivered by borrowers, will be available to
Certificateholders.
o Cash Flows will be Modeled on BLOOMBERG.
(Except as otherwise indicated, percentages (%) represent the principal
amount of loan or loans compared to aggregate pool balance, as of the
Cut-off Date (the "Initial Pool Balance"); weighted averages are weighted
using cut-off date principal balance; loans with properties in multiple
states have been allocated to certain states based upon allocated loan
amounts" or appraisal amount if the loan did not have allocated loan
amounts)
Page 4/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Structural and Collateral Term Sheet (continued):
Priority and Timing of Cash Flows *
[Intentionally Left Blank]
o Assuming 0% CPR, no losses. Otherwise based on
Table Assumptions.
Rating Agencies: To be determined.
Trustee: LaSalle National Bank.
Master Servicer: GMAC Commercial Mortgage Corporation.
Special Servicer: GMAC Commercial Mortgage Corporation.
Closing Date: On or about August 27, 1998.
Cut-off Date: August 1, 1998 (or in the case of certain loans
August 10, 1998).
ERISA: Classes A-1, A-2 and X are expected to be eligible for
Lehman's individual prohibited transaction exemption
with respect to ERISA subject to certain conditions for
eligibility.
SMMEA: Classes A-1, A-2, B and X are "mortgage related
securities" for purposes of SMMEA.
Payment: Pays on 15th of each month or, if such date is not a
business day, then the following business day,
commencing September 15, 1998.
The Class X: The Class X is comprised of multiple components, one
relating to each class of Sequential Pay Certificates.
Optional Call: 1% Clean-up Call.
Page 5/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Structural and Collateral Term Sheet (continued):
MORTGAGE LOANS: The collateral consists of an approximately $2.56
billion pool of 408 fixed rate mortgage loans secured by
first liens on commercial and multifamily properties in
44 different states and the District of Columbia. The
mortgage loans were originated by an affiliate of Lehman
Brothers, or its approved conduit originators, and GMAC
Commercial Mortgage Corporation. 15 loans or 2.8% were
purchased by either GMAC Commercial Mortgage Corporation
or by Lehman Brothers. As of the Cut-off Date, the
Mortgage Loans have a weighted average coupon ("WAC") of
7.089% and a weighted average maturity ("WAM") of 135
months (assuming that the ARD loans mature on their ARD
date). See the Collateral Overview tables at the end of
this memo for more Mortgage Loan details.
CREDIT ENHANCEMENT: Credit enhancement for each class of Certificates will
be provided by the classes of Certificates which are
subordinate in priority with respect to payments of
interest and principal.
DISTRIBUTIONS: Principal and interest payments will generally be made
to Certificateholders in the following order:
1) Interest to the Senior Classes: Class A-1, Class
A-2 and Class X, pro rata,
2) Principal to Class A-1 until such Class is
retired,*
3) Principal to Class A-2 until such Class is
retired,*
4) Interest to Class B, then Principal to Class B
until such Class is retired,
5) Interest to Class C, then Principal to Class C
until such Class is retired,
6) Interest to Class D, then Principal to Class D
until such Class is retired,
7) Interest to Class E, then Principal to Class E
until such Class is retired,
8) Interest and Principal to the Private Classes,
sequentially.
* Pro rata if Classes B through N are retired.
REALIZED LOSSES: Realized Losses from any Mortgage Loan will be
allocated in reverse sequential order (i.e. Classes N,
M, L, K, J, H, G, F, E, D, C and B, in that order, and
then pro-rata to Classes A-1 and A-2).
APPRAISAL REDUCTIONS: With respect to certain specially serviced Mortgage
Loans as to which an appraisal is required (including
any Mortgage Loan that becomes 90 days delinquent), an
Appraisal Reduction Amount may be created, in the
amount, if any, by which the Stated Principal Balance of
such Mortgage Loan, together with unadvanced interest,
unreimbursed P&I advances and certain other items,
exceeds 90% of the appraised value of the related
Mortgaged Property. The Appraisal Reduction Amount will
reduce proportionately the amount of any P&I Advance for
such loan, which reduction may result in a shortfall of
interest to the most subordinate class of Principal
Balance Certificates outstanding. The Appraisal
Reduction Amount will be reduced to zero as of the date
the related Mortgage Loan has been brought current for
twelve months, paid in full, repurchased or otherwise
liquidated, and any shortfalls borne by the subordinate
classes may be paid from amounts recovered from the
related borrower.
MINIMUM DENOMINATIONS:
Minimum Increments
Classes Denomination Thereafter Delivery
- --------------------------------------------------------------------------------
A-1, A-2, B, C, D, and E $25,000 $1 DTC
- --------------------------------------------------------------------------------
X $1,000,000 $1 DTC
Page 6/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Structural and Collateral Term Sheet (continued):
PREPAYMENT PREMIUMS*
<TABLE>
<CAPTION>
================================================================================================================
Prepayment 8/98 8/99 8/00 8/01 8/02 8/03 8/04 8/05 8/06 8/07 8/08 8/09
Premium
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lock-out/Def. 92.4% 92.2% 92.2% 91.7% 89.9% 88.6% 88.3% 88.3% 88.4% 87.6% 62.3% 82.1%
- ----------------------------------------------------------------------------------------------------------------
YM 6.2% 6.4% 6.3% 6.7% 8.3% 9.4% 9.5% 9.6% 9.4% 8.5% 14.0% 17.8%
- ----------------------------------------------------------------------------------------------------------------
Sub Total 98.6% 98.6% 98.5% 98.4% 98.3% 97.9% 97.7% 97.9% 97.8% 96.1% 76.4% 99.8%
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
5% 0.1% 0.1% 0.2%
- ----------------------------------------------------------------------------------------------------------------
4% 0.1% 0.1% 0.2%
- ----------------------------------------------------------------------------------------------------------------
3% 0.1% 0.3% 0.2%
- ----------------------------------------------------------------------------------------------------------------
2% 0.1% 0.2%
- ----------------------------------------------------------------------------------------------------------------
1% 1.4% 1.4% 1.5% 1.5% 1.5% 1.6% 1.6% 1.7% 1.9% 2.0%
- ----------------------------------------------------------------------------------------------------------------
Open 0.2% 0.1% 1.9% 23.6% 0.2%
================================================================================================================
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
================================================================================================================
</TABLE>
* % represents % of then outstanding balance as of the date shown utilizing
cut-off date balances.
OPEN PREPAYMENT PERIOD AT END OF LOAN (i.e. Prior to Maturity Date or ARD, as
applicable):
===========================================================
Open Period at End* Number of Loans % of Balance
-----------------------------------------------------------
None 33 28.53
-----------------------------------------------------------
3 Months 189 28.00
-----------------------------------------------------------
4 Months 6 0.96
-----------------------------------------------------------
6 Months 157 34.31
-----------------------------------------------------------
7 Months 3 0.84
-----------------------------------------------------------
9 Months 16 6.12
-----------------------------------------------------------
>= 12 Months 4 1.25
===========================================================
* Weighted average open period at end of loan is 4 months.
ALLOCATION OF PREPAYMENT PREMIUMS:
All Prepayment Premiums are distributed to Certificateholders on the
Distribution Date following the one-month collection period in which
the prepayment occurred. All Prepayment Premiums will be allocated
to the Classes A through G, in each case, up to the product of (i)
the Prepayment Premium, (ii) the "Discount Rate Fraction" and (iii)
the percentage of the total principal distribution to
Certificateholders to which such Class is entitled. Any excess
amounts will be distributed to Class X.
The Discount Rate Fraction for Classes A through G is defined as:
(Coupon on Class - Reinvestment Yield)/(Coupon on Mortgage Loan -
Reinvestment Yield)
Page 7/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Structural and Collateral Term Sheet (continued):
PREPAYMENT PREMIUM ALLOCATION EXAMPLE:
The Yield Maintenance prepayment premium will generally be equal to
the present value of the reduction in interest payments as a result
of the prepayment through the maturity of the prepaid Mortgage Loan,
discounted at the yield of a Treasury security of similar maturity
in most cases (converted from semi-annual to monthly pay). The
following example reflects that method.
General Yield Maintenance Example:
Assuming the structure presented on pages 3 and 4 of this memo, that
Class A-1 is the only class entitled to principal and the following
assumptions:
Mortgage Loan Characteristics of loan being prepaid*:
Balance $10,000,000
Coupon 7.25%
Maturity 10 yrs (August 1, 2008)
Treasury Rate (monthly) 5.50%
Certificate Characteristics
Class A-1 Coupon 6.50%
Discount Rate Fraction Example:
<TABLE>
<CAPTION>
=========================================================================================================
Class A-1 Certificates Class IO Certificates
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Discount Rate Fraction Calculation (6.50% - 5.50%)/
(Class A-1 Coupon - Reinvestment Yield) / (7.25% - 5.50%)= (100% - 57.14%) =
(Gross Mortgage Rate - Reinvestment Yield) = 1.00% / 1.75%=
% of Premium allocated to Classes (Discount Rate Fraction) 57.14% 42.86%
=========================================================================================================
</TABLE>
CREDIT TENANT LEASE LOANS:
Credit Tenant Lease Loans are secured by mortgages on properties
which are leased (each a "Credit Tenant Lease"), to a tenant which
possesses (or whose parent or other affiliate which guarantees the
lease obligation possesses) the rating indicated in the following
table. Scheduled monthly rent payments under the Credit Tenant
Leases are generally sufficient to pay in full and on a timely basis
all interest and principal scheduled to be paid with respect to the
related Credit Tenant Lease Loans.
The Credit Tenant Lease Loans generally provide that the Tenant is
responsible for all costs and expenses incurred in connection with
the maintenance and operation of the related Credit Tenant Lease
property and that, in the event of a casualty or condemnation of a
material portion of the related Mortgaged Property:
(i) the Tenant is obligated to continue making payments;
(ii) the Tenant must make an offer to purchase the applicable
property subject to the Credit Tenant Lease for an
amount not less than the unpaid principal balance plus
accrued interest on the related Credit Tenant Lease
Loan; or
(iii) the Trustee on behalf of the Certificateholders will
have the benefit of certain non-cancelable credit lease
enhancement policies obtained to cover certain casualty
and/or condemnation risks.
Approximately 4.6% of the Mortgage Loans are Credit Tenant Lease
Loans.
Page 8/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Structural and Collateral Term Sheet (continued):
CREDIT TENANT LEASE LOANS
<TABLE>
<CAPTION>
=========================================================================================================
# Cut-off Date Property Credit
Tenant / Guarantor Loans Balance ($) Type Rating
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Retail/Off.
Circuit City 10 53,152,874 Warehouse Private Rating
---------------------------------------------------------------------------------------------------------
Walgreen Company 7 22,925,827 Retail Aa3/A+
---------------------------------------------------------------------------------------------------------
Eckerd Corporation(1) 5 12,353,217 Retail A2/A
---------------------------------------------------------------------------------------------------------
Wal-Mart 1 10,445,688 Retail Aa2/AA
---------------------------------------------------------------------------------------------------------
K-Mart 1 9,220,000 Retail Ba2/BB
---------------------------------------------------------------------------------------------------------
Hannaford 1 5,700,000 Retail Private Rating
---------------------------------------------------------------------------------------------------------
Rite Aid Corporation 1 1,477,894 Retail Baa1/BBB+
---------------------------------------------------------------------------------------------------------
A2/Private
Bridgestone Corporation 1 1,382,541 Retail Rating
---------------------------------------------------------------------------------------------------------
IHOP Corporation 1 1,297,187 Retail Private Rating
---------------------------------------------------------------------------------------------------------
Southland Corporation 1 1,232,901 Retail Ba3/BB+
=========================================================================================================
</TABLE>
Unless otherwise indicated, such ratings were the highest rating assigned to the
applicable tenant or guarantor, as applicable, by Moody's and Standard & Poor's,
respectively. See "Description of the Mortgage Pool--Credit Lease Loans" in the
Prospectus Supplement.
(1) Based upon the rating of Eckerd's parent, J.C. Penney Corporation,
although it has made no explicit guaranty of Eckerd's obligations.
Page 9/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Structural and Collateral Term Sheet (continued):
Large Loans: There are 5 loans with a cut-off date principal balance in
excess of $60mm. The following table provides a summary of
such 5 largest loans (the "Large Loans").
Mortgage Loan Summary:
<TABLE>
<CAPTION>
====================================================================================================================================
Mortgage Property # of Cut-off Date Original Amort
Loan Type Properties Balance ($) Coupon Term Term DSCR LTV
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERS Retail 12 199,846,047 6.590% 120 Months 30 yr. Sched. 2.31x 48.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Arden(1) Office/R&D 22 136,100,000 6.740% 118 Months 4.750 yrs. IO then 25 yr. 2.19x 51.4%
Industrial Sched.
- ------------------------------------------------------------------------------------------------------------------------------------
Boykin(2 Hotel 10 130,000,000 6.900% 120 Months 1.917 yrs. IO then 25 yr. 2.30x 47.0%
Sched.
- ------------------------------------------------------------------------------------------------------------------------------------
South Towne Regional Mall 1 64,000,000 6.610% 120 Months Interest Only 2.05x 61.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Grove Multifamily 17 63,000,000 6.590% 120 Months Interest Only 2.11x 62.4%
====================================================================================================================================
Total / N/A 62 592,946,047 6.695% N/A N/A 2.23x 51.7%
Weighted Average
====================================================================================================================================
</TABLE>
(1) DSCR shown is based upon the required debt service payments during the
loan's IO period.
(2) DSCR shown is based upon the required debt service payments during the
loan's amortization period.
OPERS:
=====================================================================
Cut-Off Date Balance: $199,846,047
---------------------------------------------------------------------
Coupon/Term: 6.59%/10 years
---------------------------------------------------------------------
Sponsor: Public Employees Retirement System of Ohio
---------------------------------------------------------------------
Properties: 12 factory outlet centers totaling 2.9
million square feet ($276 psf average
sales)
---------------------------------------------------------------------
Locations: AL, CT, DE, IL, NH, OR, SC and UT
---------------------------------------------------------------------
Appraised Value: $411,390,000
---------------------------------------------------------------------
LTV: 48.6%
---------------------------------------------------------------------
DSCR: 2.31x
---------------------------------------------------------------------
Lockbox: Hard
---------------------------------------------------------------------
Reserves: Springing DSCR reserve in the event DSCR
drops below 2.00x. Monthly tax and
insurance escrow.
=====================================================================
Page 10/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Structural and Collateral Term Sheet (continued):
Arden Realty, Inc.:
=====================================================================
Cut-Off Date Balance: $136,100,000
---------------------------------------------------------------------
Coupon/Term: 6.74%/9.83 years
---------------------------------------------------------------------
Sponsor: Arden Realty Company
---------------------------------------------------------------------
Property: 22 suburban office (71.1% by SF) and R&D/
Industrial (28.9% by SF) bldgs.
---------------------------------------------------------------------
Size: 2,252,678 total square feet
---------------------------------------------------------------------
Location: Los Angeles and San Diego metropolitan areas
---------------------------------------------------------------------
Value: $264.6 million based upon a 8.94% cap rate on
Lehman underwritten NOI
---------------------------------------------------------------------
LTV: 51.4%
---------------------------------------------------------------------
DSCR: 2.19x
---------------------------------------------------------------------
Lockbox: Springing if DSCR falls below 1.50x.
---------------------------------------------------------------------
Reserves: Ongoing Tax and Insurance/Tenant Improvement
and Leasing Commission
=====================================================================
Boykin Lodging Company:
=====================================================================
Cut-Off Date Balance: $130,000,000
---------------------------------------------------------------------
Coupon/Term: 6.90%/10 years
---------------------------------------------------------------------
Sponsor: Boykin Lodging Company
---------------------------------------------------------------------
Properties: Ten Doubletree hotels
---------------------------------------------------------------------
Size: 3,062 rooms
---------------------------------------------------------------------
Location: OR, WA, CA, NE, CO and ID
---------------------------------------------------------------------
Appraised Value: $276,600,000
---------------------------------------------------------------------
LTV: 47.0%
---------------------------------------------------------------------
DSCR: 2.30x
---------------------------------------------------------------------
Lockbox: Hard
---------------------------------------------------------------------
FF&E Reserve FF&E equal to 4% of each property's total
gross revenues, funded monthly
---------------------------------------------------------------------
Reserves: Tax and Insurance reserve funded monthly.
$2,800,000 funded at closing to cover 125% of
the estimated costs of certain capital
expenditures. Borrower has covenanted that
it will expend a minimum of $10,000,000 on
capital improvements prior to June 30, 2000.
=====================================================================
Page 11/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Structural and Collateral Term Sheet (continued):
South Towne Center and Marketplace:
=====================================================================
Cut-Off Date Balance: $64,000,000
---------------------------------------------------------------------
Coupon/Term: 6.61%/10 years
---------------------------------------------------------------------
Sponsor: The Macerich Company
---------------------------------------------------------------------
Anchors: Dillard's, ZCMI, J.C. Penney and Mervyn's
---------------------------------------------------------------------
Property: Two-level, 940,943 sf regional mall and
adjacent power center
---------------------------------------------------------------------
Location: Sandy, Utah (Salt Lake City suburb)
---------------------------------------------------------------------
Value: 104.7 million based on a 8.75% cap rate on
Lehman underwritten NOI
---------------------------------------------------------------------
LTV: 61.1%
---------------------------------------------------------------------
DSCR: 2.05x
---------------------------------------------------------------------
Lockbox: Springing if DSCR falls below 1.50x.
=====================================================================
Grove Property Trust:
=====================================================================
Cut-Off Date Balance: $63,000,000
---------------------------------------------------------------------
Coupon/Term: 6.59%/10 years
---------------------------------------------------------------------
Sponsor: Grove Property Trust
---------------------------------------------------------------------
Properties: 17 multifamily properties, containing 1,950
units
---------------------------------------------------------------------
Location: Various, throughout southern New England
---------------------------------------------------------------------
Appraised Value: $100.9 million
---------------------------------------------------------------------
LTV: 62.4%
---------------------------------------------------------------------
DSCR: 2.11x
---------------------------------------------------------------------
Lockbox Springing if DSCR falls below 1.20x.
---------------------------------------------------------------------
Reserves: Tax reserve funded monthly
=====================================================================
Page 12/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Structural and Collateral Term Sheet (continued):
AFFILIATED BORROWER CONCENTRATIONS:
=====================================================================
Sponsor Name Number of Loans % by Cut-off
Balance
---------------------------------------------------------------------
Public Employees Retirement System of
Ohio 1 7.79
---------------------------------------------------------------------
Arden Realty, Inc. 1 5.31
---------------------------------------------------------------------
Boykin Lodging Company 1 5.07
---------------------------------------------------------------------
UNIPROP Inc. 14 4.14
---------------------------------------------------------------------
The Macerich Company 1 2.50
---------------------------------------------------------------------
Grove Property Trust 1 2.46
=====================================================================
*No other borrower concentration equals or exceeds 2.25%.
RESERVES:
The below table relates only to "conduit" loans and excludes all CTL
loans as well as the Large Loans.
=====================================================================
% of Conduit Loans w/Annual Annual Deposit
Escrows ($)
---------------------------------------------------------------------
Replacement Reserves 71.9 7.3 MM
---------------------------------------------------------------------
TI & LC (Retail) 64.2 2.4 MM
---------------------------------------------------------------------
TI & LC (Office) 75.3 2.8 MM
---------------------------------------------------------------------
TI & LC (Industrial/W'hse) 64.9 0.5 MM
=====================================================================
*In addition, ten loans reserve periodically for lease specific
events.
Lockboxes:
The below table relates to all Mortgage Loans.
=====================================================================
Hard 18.0% of all loans, by balance , have hard lockboxes
---------------------------------------------------------------------
Springing 40.1% of all loans, by balance, have springing lockboxes
=====================================================================
Page 13/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Structural and Collateral Term Sheet (continued):
ANTICIPATED REPAYMENT DATE LOANS:
Mortgage Loans representing 32.9% of the Initial Pool Balance
provided that if the unamortized principal amount thereof is not
repaid on a date (the "Anticipated Repayment Date") set forth in the
related Mortgage Note, the Mortgage Loan will accrue additional
interest at the rate set forth therein and the borrower will be
required to apply excess monthly cash flow generated by the
Mortgaged Property (as determined in the related Mortgage) to the
repayment of principal outstanding on the Mortgage Loan. With
respect to such Mortgage Loans, no Prepayment Premiums or Yield
Maintenance Charges will be due in connection with any principal
prepayment on or after the Anticipated Repayment Date. For purposes
of analysis and presentation, such loans are assumed to pay off at
the ARD and treated like balloon loans that mature on the ARD.
DETAILED MONTHLY INVESTOR REPORTING:
Updated collateral summary information will be a part of the monthly
remittance report in addition to detailed P&I payment and
delinquency information. Quarterly NOI and Occupancy data, to the
extent delivered by the borrowers, will be available to
Certificateholders through the Trustee. The following is a list of
all the reports that will be available to Certificateholders:
Name of Report Description (information provided)
-------------------------------------------------------------------
1 Remittance Report principal and interest
distributions, principal balances
-------------------------------------------------------------------
2 Mortgage Loan Status Report portfolio stratifications
-------------------------------------------------------------------
3 Comparative Financial revenue, NOI, DSCR to the extent
Status Report available
-------------------------------------------------------------------
4 Delinquent Loan Status listing of delinquent mortgage
Report loans
-------------------------------------------------------------------
5 Historical Loan information on modified mortgage
Modification Report loans
-------------------------------------------------------------------
6 Historical Loss Estimate liquidation proceeds, expenses,
Report and realized losses
-------------------------------------------------------------------
7 REO Status Report NOI and value of REO
-------------------------------------------------------------------
8 Watch List listing of loans in jeopardy of
becoming Specially Serviced
-------------------------------------------------------------------
9 Loan Payoff Statement listing of loans where borrower
Request Report has requested a pay-off statement
ADVANCING: The Master Servicer will be obligated to make advances
of scheduled principal and interest payments (excluding
balloon payments and subject to reduction for Appraisal
Reduction Amounts) and certain servicing expenses
("Advances"), to the extent that such Advances are
deemed to be recoverable out of collections on the
related loan. If the Master Servicer fails to make a
required Advance, the Trustee will be obligated to make
such advances.
CONTROLLING CLASS:
A majority of Certificateholders of the Controlling
Class, which will generally be the most subordinate
class with a Certificate Balance outstanding that is at
least 25% of the initial Certificate Balance of such
Class will, subject to certain limitations, be entitled
to replace the Special Servicer.
Page 14/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Structural and Collateral Term Sheet (continued):
SPECIAL SERVICER The Pooling and Servicing Agreement will generally permit the
FLEXIBILITY: Special Servicer to modify, waive or amend any term of any
Mortgage Loan if (a) it determines, in accordance with the
servicing standard, that it is appropriate to do so and (b)
among other things, such modification, waiver or amendment
will not, subject to certain exceptions:
(i) affect the amount or timing of any scheduled payments of
principal, interest or other amount (including
Prepayment Premiums and Yield Maintenance Charges)
payable under the Mortgage Loan;
(ii) affect the obligation of the related borrower to pay a
Prepayment Premium or Yield Maintenance Charge or permit
a principal prepayment during the applicable Lockout
Period;
(iii) except as expressly provided by the related Mortgage or
in connection with a material adverse environmental
condition at the related Mortgaged Property, result in a
release of the lien of the related Mortgage on any
material portion of such Mortgaged Property without a
corresponding principal prepayment, or;
(iv) in the judgment of the Special Servicer, materially
impair the security for the Mortgage Loan or reduce the
likelihood of timely payment of amounts due thereon.
SPECIAL SERVICER/ GMAC Commercial Mortgage Corporation. As of June 30, 1998,
MASTER SERVICER: GMAC Commercial Mortgage Corporation had a total commercial
and multifamily mortgage loan servicing portfolio (including
loans serviced for its own account and for others) of
approximately $46.0 billion.
Page 15/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Collateral Overview:
<TABLE>
<CAPTION>
GENERAL CHARACTERISTICS PROPERTY TYPES
========================================= ======================================
Property % of Initial Pool
Characteristics Types Balance
- ----------------------------------------- --------------------------------------
<S> <C> <C> <C>
Initial Pool Balance $2,563,948,705 Multifamily* 29.89
- ----------------------------------------- --------------------------------------
# of Loans 408 Retail 25.42
- ----------------------------------------- --------------------------------------
Gross WAC 7.089% Office 11.22
- ----------------------------------------- --------------------------------------
Original WAM 137 Months Hotel 9.30
- ----------------------------------------- --------------------------------------
Remaining WAM 135 Months Health Care 6.17
- ----------------------------------------- --------------------------------------
Avg. Loan Balance $6,284,188 Office/Industrial 5.31
- ----------------------------------------- --------------------------------------
WA DSCR* 1.65x CTL 4.65
- ----------------------------------------- --------------------------------------
WA Cut-off Date LTV Ratio* 66.0% Industrial/Warehouse 4.04
- ----------------------------------------- --------------------------------------
Balloon or ARD Loans 357 Self Storage 1.95
========================================= --------------------------------------
*Excluding CTL loans Mixed Use 1.81
--------------------------------------
Other 0.25
======================================
* Includes Manufactured Housing
</TABLE>
DEAL SUMMARY BY PROPERTY TYPE
<TABLE>
<CAPTION>
==================================================================================================================================
Aggregate Average Gross Rem. WA WA
# of Cut-off Date % of Cut-off Date WAC WAM LTV WA Occup. Balloon
Property Type Loans Balance ($) Pool Balance ($) (%) (mos) Ratio DSCR (x) Rate(%) %
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Multifamily 132 766,245,890 29.89 5,804,893 6.90 136 69.93 1.55 95.66 92.42
- ----------------------------------------------------------------------------------------------------------------------------------
Conventional 105 629,912,704 24.57 5,999,169 6.98 139 70.72 1.51 95.28 90.78
- ----------------------------------------------------------------------------------------------------------------------------------
Mobile Home Park 27 136,333,185 5.32 5,049,377 6.56 124 66.31 1.72 97.33 100.00
- ----------------------------------------------------------------------------------------------------------------------------------
Retail 98 651,740,342 25.42 6,650,412 7.01 124 63.97 1.74 96.78 96.17
- ----------------------------------------------------------------------------------------------------------------------------------
Anchored 48 518,939,214 20.24 10,811,234 6.93 125 62.09 1.82 97.06 95.87
- ----------------------------------------------------------------------------------------------------------------------------------
Unanchored 50 132,801,129 5.18 2,656,023 7.33 122 71.32 1.43 95.67 97.33
- ----------------------------------------------------------------------------------------------------------------------------------
Office 67 287,606,735 11.22 4,292,638 7.28 121 69.07 1.44 95.43 98.20
- ----------------------------------------------------------------------------------------------------------------------------------
Hotel 17 238,428,476 9.30 14,025,204 7.15 126 54.49 1.99 N/A 100.00
- ----------------------------------------------------------------------------------------------------------------------------------
Full Service 5 185,967,458 7.25 37,193,492 6.99 123 49.92 2.12 N/A 100.00
- ----------------------------------------------------------------------------------------------------------------------------------
Limited Service 12 52,461,018 2.05 4,371,751 7.71 138 70.69 1.52 N/A 100.00
- ----------------------------------------------------------------------------------------------------------------------------------
Health Care 17 158,193,508 6.17 9,305,500 7.51 127 75.12 1.58 92.16 96.44
- ----------------------------------------------------------------------------------------------------------------------------------
Nurs. Home, Skilled 11 116,028,176 4.53 10,548,016 7.63 131 77.00 1.57 90.95 95.15
- ----------------------------------------------------------------------------------------------------------------------------------
Assisted Living 5 37,870,233 1.48 7,574,047 7.13 119 70.85 1.61 94.98 100.00
- ----------------------------------------------------------------------------------------------------------------------------------
Congregate Care 1 4,295,098 0.17 4,295,098 7.50 119 62.25 1.43 100.00 100.00
- ----------------------------------------------------------------------------------------------------------------------------------
Office/Industrial 1 136,100,000 5.31 136,100,000 6.74 117 51.44 2.19 97.30 100.00
- ----------------------------------------------------------------------------------------------------------------------------------
CTL 29 119,188,129 4.65 4,109,935 7.43 228 N/A N/A 100.00 35.26
- ----------------------------------------------------------------------------------------------------------------------------------
Industrial/W'hse 21 103,599,883 4.04 4,933,328 7.44 174 69.30 1.31 97.74 64.27
- ----------------------------------------------------------------------------------------------------------------------------------
Self Storage 23 49,941,304 1.95 2,171,361 7.40 144 69.38 1.46 88.60 77.88
- ----------------------------------------------------------------------------------------------------------------------------------
Mixed Use 1 46,463,602 1.81 46,463,602 7.33 119 71.37 1.35 86.00 100.00
- ----------------------------------------------------------------------------------------------------------------------------------
Other 2 6,440,836 0.25 3,220,418 7.70 147 48.13 1.40 100.00 0.00
==================================================================================================================================
Total/Avg/Min/Max 408 2,563,948,705 100.00 6,284,188 7.09 135 65.97(1) 1.65(1) 95.79(2) 91.20
Wtd.Avg:
==================================================================================================================================
</TABLE>
(1) Excludes credit tenant lease properties but includes Section 42
multifamily properties.
(2) Excluding Hotels.
Page 16/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Collateral Overview:
<TABLE>
<CAPTION>
LOAN SIZE DISTRIBUTION GROSS RATE DISTRIBUTION
=========================================================== ========================================
# of % of Initial Gross Rate % of Initial
Balance Ranges ($) Loans Pool Balance (%) Pool Balance
- ----------------------------------------------------------- ----------------------------------------
<S> <C> <C> <C> <C>
440,000 - 2,000,000 107 5.93 6.251 - 6.500 5.56
- ----------------------------------------------------------- ----------------------------------------
2,000,000.01 - 4,000,000 155 17.27 6.501 - 6.750 22.04
- ----------------------------------------------------------- ----------------------------------------
4,000,000.01 - 6,000,000 69 13.19 6.751 - 7.000 16.71
- ----------------------------------------------------------- ----------------------------------------
6,000,000.01 - 8,000,000 24 6.55 7.001 - 7.250 18.59
- ----------------------------------------------------------- ----------------------------------------
8,000,000.01 - 10,000,000 8 2.72 7.251 - 7.500 25.37
- ----------------------------------------------------------- ----------------------------------------
10,000,000.01 - 12,000,000 7 2.93 7.501 - 8.000 10.08
- ----------------------------------------------------------- ----------------------------------------
12,000,000.01 - 14,000,000 7 3.58 8.001 - 8.500 0.88
- ----------------------------------------------------------- ----------------------------------------
14,000,000.01 - 16,000,000 6 3.47 8.501 - 8.750 0.30
- ----------------------------------------------------------- ----------------------------------------
16,000,000.01 - 20,000,000 5 3.56 8.751 - 9.000 0.23
- ----------------------------------------------------------- ----------------------------------------
20,000,000.01 - 24,000,000 5 4.17 9.001 - 9.250 0.12
- ----------------------------------------------------------- ----------------------------------------
24,000,000.01 - 28,000,000 3 2.99 9.501 - 9.750 0.11
- ----------------------------------------------------------- ========================================
28,000,000.01 - 38,000,000 3 3.70
- -----------------------------------------------------------
38,000,000.01 - 46,000,000 3 5.02 Minimum Rate: 6.280%
- ----------------------------------------------------------- Maximum Rate: 9.750%
46,000,000.01 - 64,000,000 3 6.77 WAC: 7.089%
- -----------------------------------------------------------
128,000,000.01 - 130,000,000 1 5.07
- -----------------------------------------------------------
136,000,000.01 - 138,000,000 1 5.31
- -----------------------------------------------------------
198,000,000.01 - 200,000,000 1 7.79
===========================================================
</TABLE>
Minimum Cut-off Date Balance: $440,000
Maximum Cut-off Date Balance: $199,846,047
Average Cut-off Date Balance: $6,284,188
REMAINING TERMS TO MATURITY(1) REMAINING AMORTIZATION TERM(1)
============================================ =================================
% of Initial % of Initial
Months Pool Balance Months Pool Balance
- -------------------------------------------- ---------------------------------
32 - 48 0.22 0 - 108 6.38
- -------------------------------------------- ---------------------------------
49 - 60 0.34 109 - 168 0.38
- -------------------------------------------- ---------------------------------
73 - 84 3.30 169 - 192 1.18
- -------------------------------------------- ---------------------------------
97 - 108 1.05 193 - 228 0.15
- -------------------------------------------- ---------------------------------
109 - 120 72.88 229 - 240 3.58
- -------------------------------------------- ---------------------------------
121 - 144 5.97 241 - 252 2.22
- -------------------------------------------- ---------------------------------
145 - 168 0.24 253 - 288 1.25
- -------------------------------------------- ---------------------------------
169 - 192 6.35 289 - 324 32.97
- -------------------------------------------- ---------------------------------
205 - 228 0.39 337 - 361 51.90
- -------------------------------------------- ---------------------------------
229 - 240 3.69
- --------------------------------------------
241 - 276 2.05
- --------------------------------------------
289 - 300 3.53
============================================
Minimum Remaining 32 mos. Minimum Remaining 119 mos.(2)
Term to Maturity: Amortization Term:
Maximum Remaining 300 mos. Maximum Remaining 361 mos.
Term to Maturity: Amortization Term:
Weighted Average 135 mos. Weighted Average 326 mos.
Remaining Term to Maturity: Amortization Term:
(1) Assumes ARD Loans payoff on their (2) Excludes interest only loans.
Anticipated Repayment Date.
Page 17/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Series 1998-C2 Collateral Overview:
DEBT SERVICE COVERAGE RATIOS* LOAN TO VALUE % (LTV)*
======================================= ===================================
Cut-off Date % of Initial Cut-Off Date % of Initial
DSCR Ranges (x) Pool Balance LTV Ranges Pool Balance
- --------------------------------------- -----------------------------------
< = 1.19 2.13 15.01 - 20.00 0.02
- --------------------------------------- -----------------------------------
1.20 - 1.24 4.23 25.01 - 30.00 0.14
- --------------------------------------- -----------------------------------
1.25 - 1.29 12.93 30.01 - 35.00 0.10
- --------------------------------------- -----------------------------------
1.30 - 1.34 10.89 35.01 - 40.00 0.49
- --------------------------------------- -----------------------------------
1.35 - 1.39 9.58 40.01 - 45.00 0.19
- --------------------------------------- -----------------------------------
1.40 - 1.44 6.89 45.01 - 50.00 15.87
- --------------------------------------- -----------------------------------
1.45 - 1.49 4.90 50.01 - 55.00 9.02
- --------------------------------------- -----------------------------------
1.50 - 1.54 5.06 55.01 - 60.00 4.76
- --------------------------------------- -----------------------------------
1.55 - 1.59 3.97 60.01 - 65.00 11.10
- --------------------------------------- -----------------------------------
1.60 - 1.64 1.97 65.01 - 70.00 10.28
- --------------------------------------- -----------------------------------
1.65 - 1.74 3.47 70.01 - 75.00 24.39
- --------------------------------------- -----------------------------------
1.75 - 1.84 3.60 75.01 - 80.00 20.30
- --------------------------------------- -----------------------------------
1.85 - 1.94 3.50 80.01 - 85.00 1.89
- --------------------------------------- -----------------------------------
1.95 - 2.04 0.21 85.01 - 90.00 1.42
- --------------------------------------- ===================================
2.05 >= 26.60 Minimum LTV*: 15.29%
======================================= Maximum LTV*: 86.75%
Minimum DSCR*: 1.06x Weighted Average LTV*: 65.97%
Maximum DSCR*: 3.30x
Weighted Average DSCR*: 1.65x
*EXCLUDES CTL LOANS.
STATE DISTRIBUTION
====================================== ======================================
% of Initial % of Initial
State Pool Balance State Pool Balance
- -------------------------------------- --------------------------------------
California 16.79 Illinois 2.45
- -------------------------------------- --------------------------------------
New Jersey 6.56 Washington 2.37
- -------------------------------------- --------------------------------------
Florida 5.28 Georgia 2.35
- -------------------------------------- --------------------------------------
Texas 5.08 Delaware 2.28
- -------------------------------------- --------------------------------------
Connecticut 4.33 Massachusetts 2.09
- -------------------------------------- --------------------------------------
Pennsylvania 4.27 Colorado 2.04
- -------------------------------------- --------------------------------------
New York 4.24 Alabama 2.02
- -------------------------------------- --------------------------------------
Utah 3.67 Ohio 1.93
- -------------------------------------- --------------------------------------
Oregon 3.66 Arizona 1.83
- -------------------------------------- --------------------------------------
Michigan 3.54 Maryland 1.56
- -------------------------------------- --------------------------------------
Nevada 3.42 Iowa 1.42
- -------------------------------------- --------------------------------------
Virginia 2.78 Tennessee 1.36
- -------------------------------------- --------------------------------------
South Carolina 2.53 Other* 10.15
====================================== ======================================
No other state greater than 1.25%.
====================================
Loan Type % of Pool
------------------------------------
Balloon 58.30
------------------------------------
Fully Amortizing 8.80
------------------------------------
ARD Loan 32.91
====================================
Page 18/18
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH, THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COPMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAIRED
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
ANNEX D
GLOBAL CLEARANCE, SETTLEMENT AND TAX
DOCUMENTATION PROCEDURES
Except in certain limited circumstances, the globally offered GMAC
Commercial Mortgage Securities, Inc. Mortgage Pass-Through Certificates, Series
1998-C2 (the "Global Securities") will be available only in book-entry form.
Investors in the Global Securities may hold such Global Securities through any
of DTC, CEDEL or Euroclear. The Global Securities will be tradeable as home
market instruments in both the European and U.S. domestic markets. Initial
settlement and all secondary trades will settle in same day funds. Capitalized
terms used but not defined in this Annex B have the meanings assigned to them in
the Prospectus Supplement and the Prospectus.
Secondary market trading between investors holding Global Securities through
CEDEL and Euroclear will be conducted in the ordinary way in accordance with
their normal rules and operating procedures and in accordance with conventional
eurobond practice (i.e., seven calendar day settlement).
Secondary market trading between investors holding Global Securities through
DTC will be conducted according to the rules and procedures applicable to U.S.
corporate debt obligations.
Secondary cross-market trading between CEDEL or Euroclear and DTC
Participants holding Certificates will be effected on a delivery-against-payment
basis through the respective Depositaries of CEDEL and Euroclear (in such
capacity) and as DTC Participants.
Non-U.S. holders (as described below) of Global Securities will be subject
to U.S. withholding taxes unless such holders meet certain requirements and
deliver appropriate U.S. tax documents to the securities clearing organizations
or their participants.
INITIAL SETTLEMENT
All Global Securities will be held in book-entry form by DTC in the name of
Cede & Co. as nominee of DTC. Investors' interests in the Global Securities will
be represented through financial institutions acting on their behalf as direct
and indirect Participants in DTC. As a result, CEDEL and Euroclear will hold
positions on behalf of their participants through their respective Depositaries,
which in turn will hold such positions in accounts as DTC Participants.
Investors electing to hold their Global Securities through DTC will follow
the settlement practices applicable to similar issues of pass-through
certificates. Investors' securities custody accounts will be credited with their
holdings against payment in same-day funds on the settlement date.
Investors electing to hold their Global Securities through CEDEL or
Euroclear accounts will follow the settlement procedures applicable to
conventional eurobonds, except that there will be no temporary global security
and no "lock-up" or restricted period. Global Securities will be credited to the
securities custody accounts on the settlement date against payments in same-day
funds.
SECONDARY MARKET TRADING
Since the purchaser determines the place of delivery, it is important to
establish at the time of the trade where both the purchaser's and seller's
accounts are located to ensure that settlement can be made on the desired value
date.
Trading between DTC Participants. Secondary market trading between DTC
Participants will be settled using the procedures applicable to similar issues
of pass-through certificates in same-day funds.
D-1
<PAGE>
Trading between CEDEL and/or Euroclear Participants. Secondary market
trading between CEDEL Participants or Euroclear Participants will be settled
using the procedures applicable to conventional eurobonds in same-day funds.
Trading between DTC seller and CEDEL or Euroclear purchaser. When Global
Securities are to be transferred from the account of a DTC Participant to the
account of a CEDEL Participant or a Euroclear Participant, the purchaser will
send instructions to CEDEL or Euroclear through a CEDEL Participant or Euroclear
Participant at least one business day prior to settlement. CEDEL or Euroclear
will instruct the respective Depositary, as the case may be, to receive the
Global Securities against payment. Payment will include interest accrued on the
Global Securities from and including the last coupon payment date to and
excluding the settlement date. Payment will then be made by the respective
Depositary to the DTC Participant's account against delivery of the Global
Securities. After settlement has been completed, the Global Securities will be
credited to the respective clearing system and by the clearing system, in
accordance with its usual procedures, to the CEDEL Participant's or Euroclear
Participant's account. The Global Securities credit will appear the next day
(European time) and the cash debit will be back-valued to, and the interest on
the Global Securities will accrue from, the value date (which would be the
preceding day when settlement occurred in New York). If settlement is not
completed on the intended value date (i.e., the trade fails), the CEDEL or
Euroclear cash debit will be valued instead as of the actual settlement date.
CEDEL Participants and Euroclear Participants will need to make available to
the respective clearing systems the funds necessary to process same-day funds
settlement. The most direct means of doing so is to pre-position funds for
settlement, either from cash on hand or existing lines of credit, as they would
for any settlement occurring within CEDEL or Euroclear. Under this approach,
they may take on credit exposure to CEDEL or Euroclear until the Global
Securities are credited to their accounts one day later.
As an alternative, if CEDEL or Euroclear has extended a line of credit to
them, CEDEL Participants or Euroclear Participants can elect not to pre-position
funds and allow that credit line to be drawn upon the finance settlement. Under
this procedure, CEDEL Participants or Euroclear Participants purchasing Global
Securities would incur overdraft charges for one day, assuming they cleared the
overdraft when the Global Securities were credited to their accounts. However,
interest on the Global Securities would accrue from the value date. Therefore,
in many cases the investment income on the Global Securities earned during that
one day period may substantially reduce or offset the amount of such overdraft
charges, although this result will depend on each CEDEL Participant's or
Euroclear Participant's particular cost of funds.
Since the settlement is taking place during New York business hours, DTC
Participants can employ their usual procedures for sending Global Securities to
the respective Depositary for the benefit of CEDEL Participants or Euroclear
Participants. The sale proceeds will be available to the DTC seller on the
settlement date. Thus, to the DTC Participant a cross-market transaction will
settle no differently than a trade between two DTC Participants.
Trading between CEDEL or Euroclear seller and DTC purchaser. Due to time
zone differences in their favor, CEDEL Participants and Euroclear Participants
may employ their customary procedures for transactions in which Global
Securities are to be transferred by the respective clearing system, through the
respective Depositary, to a DTC Participant. The seller will send instructions
to CEDEL or Euroclear through a CEDEL Participant or Euroclear Participant at
least one business day prior to settlement. In these cases, CEDEL or Euroclear
will instruct the respective Depositary, as appropriate, to deliver the bonds to
the DTC Participant's account against payment. Payment will include interest
accrued on the Global Securities from and including the last coupon payment date
to and excluding the settlement date. The payment will then be reflected in the
account of the CEDEL Participant or Euroclear Participant the following day, and
receipt of the cash proceeds in the CEDEL Participant's or Euroclear
Participant's account would be back-valued to the value date (which would be the
preceding day, when settlement
D-2
<PAGE>
occurred in New York). Should the CEDEL Participant or Euroclear Participant
have a line of credit with its respective clearing system and elect to be in
debit in anticipation of receipt of the sale proceeds in its account, the
back-valuation will extinguish any overdraft charges incurred over that one-day
period. If settlement is not completed on the intended value date (i.e., the
trade fails), receipt of the cash proceeds in the CEDEL Participant's or
Euroclear Participant's account would instead be valued as of the actual
settlement date. Finally, day traders that use CEDEL or Euroclear and that
purchase Global Securities from DTC Participants for delivery to CEDEL
Participants or Euroclear Participants should note that these trades would
automatically fail on the sale side unless affirmative action were taken. At
least three techniques should be readily available to eliminate this potential
problem:
(a) borrowing through CEDEL or Euroclear for one day (until the purchase
side of the day trade is reflected in their CEDEL or Euroclear accounts) in
accordance with the clearing system's customary procedures;
(b) borrowing the Global Securities in the U.S. from a DTC Participant
no later than one day prior to settlement, which would give the Global
Securities sufficient time to be reflected in their CEDEL or Euroclear
account in order to settle the sale side of the trade; or
(c) staggering the value dates for the buy and sell sides of the trade
so that the value date for the purchase from the DTC Participant is at least
one day prior to the value date for the sale to the CEDEL Participant or
Euroclear Participant.
CERTAIN U.S. FEDERAL INCOME TAX DOCUMENTATION REQUIREMENTS
A Beneficial Owner of Global Securities holding securities through CEDEL or
Euroclear (or through DTC if the holder has an address outside the U.S.) will be
subject to the 30% U.S. withholding tax that generally applies to payments of
interest (including original issue discount) on registered debt issued by U.S.
Persons, unless (i) each clearing system, bank or other financial institution
that holds customers' securities in the ordinary course of its trade or business
in the chain of intermediaries between such Beneficial Owner and the U.S. entity
required to withhold tax complies with applicable certification requirements and
(ii) such beneficial owner takes one of the following steps to obtain an
exemption or reduced tax rate:
Exemption for non-U.S. Persons (Form W-8). Beneficial Owners of Certificates
that are non-U.S. Persons can obtain a complete exemption from the withholding
tax by filing a signed Form W-8 (Certificate of Foreign Status). If the
information shown on Form W-8 changes, a new Form W-8 must be filed within 30
days of such change.
Exemption for non-U.S. Persons with effectively connected income (Form
4224). A non-U.S. Person, including a non-U.S. corporation or bank with a U.S.
branch, for which the interest income is effectively connected with its conduct
of a trade or business in the United States can obtain an exemption from the
withholding tax by filing Form 4224 (Exemption from Withholding of Tax on Income
Effectively Connected with the Conduct of a Trade or Business in the United
States).
Exemption or reduced rate for non-U.S. Persons resident in treaty countries
(Form 1001). Non-U.S. Persons that are Beneficial Owners residing in a country
that has a tax treaty with the United States can obtain an exemption or reduced
tax rate (depending on the treaty terms) by filing Form 1001 (Ownership,
Exemption or Reduced Rate Certificate). If the treaty provides only for a
reduced rate, withholding tax will be imposed at that rate unless the filer
alternatively files Form W-8. Form 1001 may be filed by the Beneficial Owner or
his agent.
Exemption for U.S. Persons (Form W-9). U.S. Persons can obtain a complete
exemption from the withholding tax by filing Form W-9 (Payer's Request for
Taxpayer Identification Number and Certification).
D-3
<PAGE>
U.S. Federal Income Tax Reporting Procedure. The Beneficial Owner of a
Global Security or, in the case of a Form 1001 or a Form 4224 filer, his agent,
files by submitting the appropriate form to the person through whom it holds
(the clearing agency, in the case of persons holding directly on the books of
the clearing agency). Form W-8 and Form 1001 are effective for three calendar
years and Form 4224 is effective for one calendar year.
The term "U.S. Person" means (i) a citizen or resident of the United States,
(ii) a corporation or partnership organized in or under the laws of the United
States or any political subdivision thereof or (iii) an estate the income of
which is includable in gross income for United States tax purposes, regardless
of its source or a trust if a court within the United States is able to exercise
primary supervision of the administration of the trust and one or more United
States fiduciaries have the authority to control all substantial decisions of
the trust. This summary does not deal with all aspects of U.S. Federal income
tax withholding that may be relevant to foreign holders of the Global
Securities. Investors are advised to consult their own tax advisors for specific
tax advice concerning their holding and disposing of the Global Securities.
D-4
<PAGE>
GMAC COMMERCIAL MORTGAGE SECURITIES, INC.
MORTGAGE PASS-THROUGH CERTIFICATES
The mortgage pass-through certificates (the "Offered Certificates") offered
hereby and by the supplements hereto (each, a "Prospectus Supplement") will be
offered from time to time in series. The Offered Certificates of any series,
together with any other mortgage pass-through certificates of such series, are
collectively referred to herein as the "Certificates".
Each series of Certificates will represent in the aggregate the entire
beneficial ownership interest in a trust fund (with respect to any series, the
"Trust Fund") to be formed by GMAC Commercial Mortgage Securities, Inc. (the
"Depositor") and consisting primarily of a segregated pool (a "Mortgage Asset
Pool") of the Mortgage Loans (as defined in the related Prospectus Supplement),
mortgage-backed securities ("MBS") that evidence interests in, or that are
secured by pledges of, one or more of various types of multifamily or commercial
mortgage loans, or a combination of Mortgage Loans and MBS (collectively,
"Mortgage Assets"). If so specified in the related Prospectus Supplement, the
Trust Fund for a series of Certificates may include letters of credit, insurance
policies, guarantees, reserve funds or other types of credit support, or any
combination thereof, and also interest rate exchange agreements and other
financial assets, or any combination thereof. See "Description of the Trust
Funds", "Description of the Certificates" and "Description of Credit Support".
The yield on each class of Certificates of a series will be affected by,
among other things, the rate of payment of principal (including prepayments) on
the Mortgage Assets in the related Trust Fund and the timing of receipt of such
payments as described herein and in the related Prospectus Supplement. See
"Yield and Maturity Considerations". A Trust Fund may be subject to early
termination under the circumstances described herein and in the related
Prospectus Supplement. See "Description of the Certificates--Termination;
Retirement of the Certificates".
(COVER CONTINUED ON NEXT PAGE)
------------------------
PROCEEDS OF THE ASSETS IN THE TRUST FUND ARE THE SOLE SOURCE OF PAYMENTS ON
THE OFFERED CERTIFICATES. THE OFFERED CERTIFICATES DO NOT REPRESENT AN INTEREST
IN OR OBLIGATION OF THE DEPOSITOR, THE MASTER SERVICER, GMAC COMMERCIAL MORTGAGE
CORPORATION OR ANY OF THEIR AFFILIATES. NEITHER THE OFFERED CERTIFICATES NOR THE
MORTGAGE ASSETS WILL BE GUARANTEED OR INSURED BY THE DEPOSITOR, THE MASTER
SERVICER, GMAC COMMERCIAL MORTGAGE CORPORATION OR ANY OF THEIR AFFILIATES OR,
UNLESS OTHERWISE SPECIFIED IN THE RELATED PROSPECTUS SUPPLEMENT, BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
PROSPECTIVE INVESTORS SHOULD REVIEW THE INFORMATION APPEARING ON PAGE 13
HEREIN UNDER THE CAPTION "RISK FACTORS" AND SUCH INFORMATION AS MAY BE SET FORTH
UNDER THE CAPTION "RISK FACTORS" IN THE RELATED PROSPECTUS SUPPLEMENT BEFORE
PURCHASING ANY OFFERED CERTIFICATE.
------------------------
The Offered Certificates of any series may be offered through one or more
different methods, including offerings through underwriters, as described under
"Method of Distribution" and in the related Prospectus Supplement.
The date of this Prospectus is December 17, 1997
<PAGE>
(COVER CONTINUED)
Retain this Prospectus for future reference. This Prospectus may not be used
to consummate sales of the Offered Certificates of any series unless accompanied
by the Prospectus Supplement for such series.
There will be no secondary market for the Offered Certificates of any series
prior to the offering thereof. There can be no assurance that a secondary market
for any Offered Certificates will develop or, if it does develop, that it will
continue. The Certificates will not be listed on any securities exchange.
As described in the related Prospectus Supplement, the Certificates of each
series, including the Offered Certificates of such series, may consist of one or
more classes of Certificates that: (i) provide for the accrual of interest
thereon based on a fixed, variable or adjustable interest rate; (ii) are senior
or subordinate to one or more other classes of Certificates in entitlement to
certain distributions on the Certificates; (iii) are entitled to distributions
of principal, with disproportionate, nominal or no distributions of interest;
(iv) are entitled to distributions of interest, with disproportionate, nominal
or no distributions of principal; (v) provide for distributions of interest
thereon or principal thereof that commence only following the occurrence of
certain events, such as the retirement of one or more other classes of
Certificates of such series; (vi) provide for distributions of principal thereof
to be made, from time to time or for designated periods, at a rate that is
faster (and, in some cases, substantially faster) or slower (and, in some cases,
substantially slower) than the rate at which payments or other collections of
principal are received on the Mortgage Assets in the related Trust Fund; or
(vii) provide for distributions of principal thereof to be made, subject to
available funds, based on a specified principal payment schedule or other
methodology. Distributions in respect of the Certificates of each series will be
made on a monthly, quarterly, semi-annual, annual or other periodic basis as
specified in the related Prospectus Supplement. See "Description of the
Certificates".
If so provided in the related Prospectus Supplement, one or more elections
may be made to treat the related Trust Fund or a designated portion thereof as a
"real estate mortgage investment conduit" (each, a "REMIC") for federal income
tax purposes. If applicable, the Prospectus Supplement for a series of
Certificates will specify which class or classes of such series of Certificates
will be considered to be regular interests in the related REMIC and which class
of Certificates or other interests will be designated as the residual interest
in the related REMIC. See "Certain Federal Income Tax Consequences".
2
<PAGE>
PROSPECTUS SUPPLEMENT
As more particularly described herein, the Prospectus Supplement relating to
each series of Offered Certificates will, among other things, set forth, as and
to the extent appropriate: (i) a description of the class or classes of such
Offered Certificates, including the payment provisions with respect to each such
class, the aggregate principal amount, if any, of each such class, the rate at
which interest accrues from time to time, if at all, with respect to each such
class or the method of determining such rate, and whether interest with respect
to each such class will accrue from time to time on its aggregate principal
amount, if any, or on a specified notional amount, if at all; (ii) information
with respect to any other classes of Certificates of the same series; (iii) the
respective dates on which distributions are to be made; (iv) information as to
the assets, including the Mortgage Assets, constituting the related Trust Fund
(all such assets, with respect to the Certificates of any series, the "Trust
Assets"); (v) the circumstances, if any, under which the related Trust Fund may
be subject to early termination; (vi) additional information with respect to the
method of distribution of such Offered Certificates; (vii) whether one or more
REMIC elections will be made and the designation of the "regular interests" and
"residual interests" in each REMIC to be created; (viii) the initial percentage
ownership interest in the related Trust Fund to be evidenced by each class of
Certificates of such series; (ix) information concerning the Trustee (as defined
herein) of the related Trust Fund; (x) if the related Trust Fund includes
Mortgage Loans, information concerning the Master Servicer and any Special
Servicer (each as defined herein) of such Mortgage Loans; (xi) information as to
the nature and extent of subordination of any class of Certificates of such
series, including a class of Offered Certificates; and (xii) whether such
Offered Certificates will be initially issued in definitive or book-entry form.
AVAILABLE INFORMATION
The Depositor has filed with the Securities and Exchange Commission (the
"Commission") a Registration Statement (of which this Prospectus forms a part)
under the Securities Act of 1933, as amended, with respect to the Offered
Certificates. This Prospectus and the Prospectus Supplement relating to each
series of Offered Certificates contain summaries of the material terms of the
documents referred to herein and therein, but do not contain all of the
information set forth in the Registration Statement pursuant to the rules and
regulations of the Commission. For further information, reference is made to
such Registration Statement and the exhibits thereto. Such Registration
Statement and exhibits can be inspected and copied at prescribed rates at the
public reference facilities maintained by the Commission at its Public Reference
Section, 450 Fifth Street, N.W., Washington, D.C. 20549, and at its Midwest
Regional Offices located as follows: Citicorp Center, 500 West Madison Street,
Suite 1400, Chicago, Illinois 60661-2511; and Northeast Regional Office, Seven
World Trade Center, Suite 1300, New York, New York 10048. The Commission
maintains a Web site at http://www.sec.gov containing reports, proxy and
information statements and other information regarding registrants, including
the Depositor, that file electronically with the Commission.
No dealer, salesman, or any other person has been authorized to give any
information, or to make any representations, other than those contained in this
Prospectus or any related Prospectus Supplement, and, if given or made, such
information or representations must not be relied upon as having been authorized
by the Depositor or any dealer, salesman, or any other person. Neither the
delivery of this Prospectus or any related Prospectus Supplement nor any sale
made hereunder or thereunder shall under any circumstances create an implication
that there has been no change in the information herein or therein since the
date hereof. This Prospectus and any related Prospectus Supplement are not an
offer to sell or a solicitation of an offer to buy any security in any
jurisdiction in which it is unlawful to make such offer or solicitation.
The Master Servicer or another specified person will cause to be provided to
registered holders of the Offered Certificates of each series periodic unaudited
reports concerning the related Trust Fund.
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<PAGE>
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
There are incorporated herein by reference all documents and reports filed
or caused to be filed by the Depositor with respect to a Trust Fund pursuant to
Section 13(a), 13(c), 14 or 15(d) of the Exchange Act of 1934, as amended, prior
to the termination of an offering of Offered Certificates evidencing interests
therein. The Depositor will provide or cause to be provided without charge to
each person to whom this Prospectus is delivered in connection with the offering
of one or more classes of Offered Certificates, upon written or oral request of
such person, a copy of any or all documents or reports incorporated herein by
reference, in each case to the extent such documents or reports relate to one or
more of such classes of such Offered Certificates, other than the exhibits to
such documents (unless such exhibits are specifically incorporated by reference
in such documents). Requests to the Depositor should be directed in writing to
its principal executive offices at 650 Dresher Road, Horsham, Pennsylvania
19044, or by telephone at (215) 328-3480.
4
<PAGE>
SUMMARY OF PROSPECTUS
The following summary of certain pertinent information is qualified in its
entirety by reference to the more detailed information appearing elsewhere in
this Prospectus and by reference to the information with respect to each series
of Certificates contained in the Prospectus Supplement to be prepared and
delivered in connection with the offering of Offered Certificates of such
series. An Index of Principal Definitions is included at the end of this
Prospectus.
<TABLE>
<S> <C>
SECURITIES OFFERED........................... Mortgage pass-through certificates.
DEPOSITOR.................................... GMAC Commercial Mortgage Securities, Inc., a
wholly-owned subsidiary of GMAC Commercial
Mortgage Corporation ("GMACCM"). See "The
Depositor".
TRUSTEE...................................... The trustee (the "Trustee") for each series
of Certificates will be named in the related
Prospectus Supplement. See "The Pooling and
Servicing Agreements--The Trustee".
MASTER SERVICER.............................. If a Trust Fund includes Mortgage Loans, then
the servicer or the master servicer (each, a
"Master Servicer") for the corresponding
series of Certificates will be named in the
related Prospectus Supplement. The Master
Servicer for any series of Certificates may
be GMACCM or another affiliate of the
Depositor. The Master Servicer may also be
the Special Servicer for such series and, in
such dual capacity, would be referred to as
the "Servicer". See "GMAC Commercial Mortgage
Corporation" and "The Pooling and Servicing
Agreements--Certain Matters Regarding the
Master Servicer and the Depositor".
SPECIAL SERVICER............................. If a Trust Fund includes Mortgage Loans, then
any special servicers (each, a "Special
Servicer") for the corresponding series of
Certificates will be named, or the
circumstances under which a Special Servicer
may be appointed will be described, in the
related Prospectus Supplement. A Special
Servicer for any series of Certificates may
be the Master Servicer or an affiliate of the
Depositor or the Master Servicer. See "The
Pooling and Servicing Agreements--Special
Servicers".
MBS ADMINISTRATOR............................ If a Trust Fund includes MBS, then the entity
responsible for administering such MBS (the
"MBS Administrator") will be named in the
related Prospectus Supplement. If an entity
other than the Trustee and the Master
Servicer is the MBS Administrator, such
entity will be herein referred to
</TABLE>
5
<PAGE>
<TABLE>
<S> <C>
as the "Manager". The Manager for any series
of Certificates may be GMACCM or another
affiliate of the Depositor.
THE MORTGAGE ASSETS.......................... The Mortgage Assets will be the primary asset
of any Trust Fund. The Mortgage Assets with
respect to each series of Certificates will,
in general, consist of a pool of Mortgage
Loans secured by first or junior liens on, as
described herein, multifamily residential
properties or commercial properties. If so
specified in the related Prospectus
Supplement, a Trust Fund may include Mortgage
Loans secured by liens on real estate
projects under construction. The Mortgage
Loans will not be guaranteed or insured by
the Depositor, GMACCM or any of their
affiliates or, unless otherwise provided in
the related Prospectus Supplement, by any
governmental agency or instrumentality or by
any other person. If so specified in the
related Prospectus Supplement, some Mortgage
Loans may be delinquent or non-performing as
of the date the related Trust Fund is formed.
As and to the extent described in the related
Prospectus Supplement, a Mortgage Loan (i)
may provide for no accrual of interest or for
accrual of interest thereon at an interest
rate (a "Mortgage Rate") that is fixed over
its term or that adjusts from time to time,
or that may be converted at the borrower's
election from an adjustable to a fixed
Mortgage Rate, or from a fixed to an
adjustable Mortgage Rate, (ii) may provide
for level payments to maturity or for
payments that adjust from time to time to
accommodate changes in the Mortgage Rate or
to reflect the occurrence of certain events,
and may permit negative amortization, (iii)
may be fully amortizing or may be partially
amortizing or non-amortizing, with a balloon
payment due on its stated maturity date, (iv)
may prohibit over its term or for a certain
period prepayments and/or require payment of
a premium or a yield maintenance penalty in
connection with certain prepayments and (v)
may provide for payments of principal,
interest or both, on due dates that occur
monthly, quarterly, semi-annually or at such
other interval as is specified in the related
Prospectus Supplement. Unless otherwise
provided in the related Prospectus
Supplement, each Mortgage Loan will have had
an original term to maturity of not more than
40 years. Unless otherwise provided in the
related Prospectus Supplement, no Mortgage
</TABLE>
6
<PAGE>
<TABLE>
<S> <C>
Loan will have been originated by the
Depositor; however, some or all of the
Mortgage Loans in any Trust Fund may have
been originated by GMACCM or another
affiliate of the Depositor. See "Description
of the Trust Funds--Mortgage Loans".
If and to the extent specified in the related
Prospectus Supplement, the Mortgage Assets
with respect to a series of Certificates may
also include, or consist of, MBS, provided
that each MBS will evidence an interest in,
or will be secured by a pledge of, one or
more mortgage loans that conform to the
descriptions of the Mortgage Loans contained
herein. See "Description of the Trust
Funds--MBS".
THE CERTIFICATES............................. Each series of Certificates will be issued in
one or more classes pursuant to a pooling and
servicing agreement or other agreement
specified in the related Prospectus
Supplement (in either case, a "Pooling And
Servicing Agreement") and will represent in
the aggregate the entire beneficial ownership
interest in the related Trust Fund.
As described in the related Prospectus
Supplement, the Certificates of each series,
including the Offered Certificates of such
series, may consist of one or more classes of
Certificates that, among other things: (i)
are senior (collectively, "Senior
Certificates") or subordinate (collectively,
"Subordinate Certificates") to one or more
other classes of Certificates in entitlement
to certain distributions on the Certificates;
(ii) are entitled to distributions of
principal, with disproportionate, nominal or
no distributions of interest (collectively,
"Stripped Principal Certificates"); (iii) are
entitled to distributions of interest, with
disproportionate, nominal or no distributions
of principal (collectively, "Stripped
Interest Certificates"); (iv) provide for
distributions of interest thereon or
principal thereof that commence only after
the occurrence of certain events, such as the
retirement of one or more other classes of
Certificates of such series; (v) provide for
distributions of principal thereof to be
made, from time to time or for designated
periods, at a rate that is faster (and, in
some cases, substantially faster) or slower
(and, in some cases, substantially slower)
than the rate at which payments or other
collections of principal are received on the
Mortgage Assets in the related Trust Fund;
(vi)
</TABLE>
7
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<TABLE>
<S> <C>
provide for distributions of principal
thereof to be made, subject to available
funds, based on a specified principal payment
schedule or other methodology; or (vii)
provide for distribution based on collections
on the Mortgage Assets in the related Trust
Fund attributable to prepayment premiums,
yield maintenance penalties or equity
participations.
Each class of Certificates, other than
certain classes of Stripped Interest
Certificates and certain classes of REMIC
Residual Certificates (as defined herein),
will have an initial stated principal amount
(a "Certificate Balance"); and each class of
Certificates, other than certain classes of
Stripped Principal Certificates and certain
classes of REMIC Residual Certificates, will
accrue interest on its Certificate Balance
or, in the case of certain classes of
Stripped Interest Certificates, on a notional
amount (a "Notional Amount") based on a
fixed, variable or adjustable interest rate
(a "Pass-Through Rate"). The related
Prospectus Supplement will specify the
Certificate Balance, Notional Amount and/or
Pass-Through Rate (or, in the case of a
variable or adjustable Pass-Through Rate, the
method for determining such rate), as
applicable, for each class of Offered
Certificates.
If so specified in the related Prospectus
Supplement, a class of Certificates may have
two or more component parts, each having
characteristics that are otherwise described
herein as being attributable to separate and
distinct classes.
The Certificates will not be guaranteed or
insured by the Depositor, by the Master
Servicer, by GMACCM or any of their
affiliates, by any governmental agency or
instrumentality or by any other person or
entity, unless otherwise provided in the
related Prospectus Supplement. See "Risk
Factors--Limited Obligations".
DISTRIBUTIONS OF INTEREST ON THE Interest on each class of Offered
CERTIFICATES............................... Certificates (other than certain classes of
Stripped Principal Certificates and certain
classes of REMIC Residual Certificates) of
each series will accrue at the applicable
Pass-Through Rate on the Certificate Balance
or, in the case of certain classes of
Stripped Interest Certificates, the Notional
Amount thereof outstanding from time to time
and will be distributed to Certificateholders
as provided in the related Prospectus
Supplement (each of the
</TABLE>
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<PAGE>
<TABLE>
<S> <C>
specified dates on which distributions are to
be made, a "Distribution Date").
Distributions of interest with respect to one
or more classes of Certificates
(collectively, "Accrual Certificates") may
not commence until the occurrence of certain
events, such as the retirement of one or more
other classes of Certificates, and interest
accrued with respect to a class of Accrual
Certificates prior to the occurrence of such
an event will either be added to the
Certificate Balance thereof or otherwise
deferred as described in the related
Prospectus Supplement. Distributions of
interest with respect to one or more classes
of Certificates may be reduced to the extent
of certain delinquencies, losses and other
contingencies described herein and in the
related Prospectus Supplement. See "Risk
Factors--Yield and Prepayment
Considerations", "Yield and Maturity
Considerations--Certain Shortfalls in
Collections of Interest" and "Description of
the Certificates-- Distributions of Interest
on the Certificates".
DISTRIBUTIONS OF PRINCIPAL OF THE As and to the extent described in each
CERTIFICATES............................... Prospectus Supplement, distributions of
principal with respect to the related series
of Certificates will be made on each
Distribution Date to the holders of the class
or classes of Certificates of such series
entitled thereto until the Certificate
Balances of such Certificates have been
reduced to zero. Distributions of principal
with respect to one or more classes of
Certificates: (i) may be made at a rate that
is faster (and, in some cases, substantially
faster) or slower (and, in some cases,
substantially slower) than the rate at which
payments or other collections of principal
are received on the Mortgage Assets in the
related Trust Fund; (ii) may not commence
until the occurrence of certain events, such
as the retirement of one or more other
classes of Certificates of the same series;
(iii) may be made, subject to certain
limitations, based on a specified principal
payment schedule; or (iv) may be contingent
on the specified principal payment schedule
for another class of the same series and the
rate at which payments and other collections
of principal on the Mortgage Assets in the
related Trust Fund are received. Unless
otherwise specified in the related Prospectus
Supplement, distributions of principal of any
class of Offered Certificates will be made on
a pro rata basis among all of the
Certificates of such class. See
</TABLE>
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<PAGE>
<TABLE>
<S> <C>
"Description of the
Certificates--Distributions of Principal of
the Certificates".
CREDIT SUPPORT AND CASH FLOW AGREEMENTS...... If so provided in the related Prospectus
Supplement, partial or full protection
against certain defaults and losses on the
Mortgage Assets in the related Trust Fund may
be provided to one or more classes of
Certificates of the related series in the
form of subordination of one or more other
classes of Certificates of such series, which
other classes may include one or more classes
of Offered Certificates, or by one or more
other types of credit support, such as a
letter of credit, insurance policy,
guarantee, reserve fund or another type of
credit support, or a combination thereof (any
such coverage with respect to the
Certificates of any series, "Credit
Support"). If so provided in the related
Prospectus Supplement, a Trust Fund may
include: (i) guaranteed investment contracts
pursuant to which moneys held in the funds
and accounts established for the related
series will be invested at a specified rate;
or (ii) certain other agreements, such as
interest rate exchange agreements, interest
rate cap or floor agreements, or other
agreements designed to reduce the effects of
interest rate fluctuations on the Mortgage
Assets or on one or more classes of
Certificates (any such agreement, in the case
of clause (i) or (ii), a "Cash Flow
Agreement"). Certain relevant information
regarding any applicable Credit Support or
Cash Flow Agreement will be set forth in the
Prospectus Supplement for a series of Offered
Certificates. See "Risk Factors--Credit
Support Limitations", "Description of the
Trust Funds--Credit Support" and "--Cash Flow
Agreements" and "Description of Credit
Support".
ADVANCES..................................... If and to the extent provided in the related
Prospectus Supplement, if a Trust Fund
includes Mortgage Loans, the Master Servicer,
a Special Servicer, the Trustee, any provider
of Credit Support and/or any other specified
person may be obligated to make, or have the
option of making, certain advances with
respect to delinquent scheduled payments of
principal and/or interest on such Mortgage
Loans. Any such advances made with respect to
a particular Mortgage Loan will be
reimbursable from subsequent recoveries in
respect of such Mortgage Loan and otherwise
to the extent described herein and in the
related Prospectus Supplement. See
"Description of the
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Certificates--Advances in respect of
Delinquencies". If and to the extent provided
in the Prospectus Supplement for a series of
Certificates, any entity making such advances
may be entitled to receive interest thereon
for a specified period during which certain
or all of such advances are outstanding,
payable from amounts in the related Trust
Fund. See "Description of the
Certificates--Advances in Respect of
Delinquencies". If a Trust Fund includes MBS,
any comparable advancing obligation of a
party to the related Pooling and Servicing
Agreement, or of a party to the related MBS
Agreement, will be described in the related
Prospectus Supplement.
OPTIONAL TERMINATION......................... The Master Servicer, the Depositor or, if
specified in the related Prospectus
Supplement, the holder of the residual
interest in a REMIC may at its option either
(i) effect early retirement of a series of
Certificates through the purchase of the
assets in the related Trust Fund or (ii)
purchase, in whole but not in part, the
Certificates specified in the related
Prospectus Supplement; in each case under the
circumstances and in the manner set forth
herein under "Description of the
Certificates-- Termination; Retirement of
Certificates" and in the related Prospectus
Supplement.
CERTAIN FEDERAL INCOME TAX CONSEQUENCES...... The Certificates of each series will
constitute "regular interests" ("REMIC
Regular Certificates") and "residual
interests" ("REMIC Residual Certificates") in
a Trust Fund, or a designated portion
thereof, treated as a REMIC under Sections
860A through 860G of the Internal Revenue
Code of 1986 (the "Code").
Investors are advised to consult their tax
advisors and to review "Certain Federal
Income Tax Consequences" herein and in the
related Prospectus Supplement.
ERISA CONSIDERATIONS......................... Fiduciaries of employee benefit plans and
certain other retirement plans and
arrangements, including individual retirement
accounts, annuities, Keogh plans, and
collective investment funds and separate
accounts (and, as applicable, insurance
company general accounts) in which such
plans, accounts, annuities or arrangements
are invested, that are subject to the
Employee Retirement Income Security Act of
1974, as amended ("ERISA"), or Section 4975
of the Code, should review with their legal
advisors whether the purchase or holding of
Offered Certificates could
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give rise to a transaction that is prohibited
or is not otherwise permissible either under
ERISA or Section 4975 of the Code. See "ERISA
Considerations" herein and in the related
Prospectus Supplement.
LEGAL INVESTMENT............................. The Offered Certificates will constitute
"Mortgage Related Securities" for purposes of
the Secondary Mortgage Market Enhancement Act
of 1984, as amended ("SMMEA"), only if so
specified in the related Prospectus
Supplement. Investors whose investment
authority is subject to legal restrictions
should consult their legal advisors to
determine whether and to what extent the
Offered Certificates constitute legal
investments for them. See "Legal Investment"
herein and in the related Prospectus
Supplement.
RATING....................................... At their respective dates of issuance, each
class of Offered Certificates will be rated
not lower than investment grade by one or
more nationally recognized statistical rating
agencies (each, a "Rating Agency"). See
"Rating" herein and in the related Prospectus
Supplement.
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RISK FACTORS
In considering an investment in the Offered Certificates of any series,
investors should consider, among other things, the following risk factors and
any other factors set forth under the heading "Risk Factors" in the related
Prospectus Supplement. In general, to the extent that the factors discussed
below pertain to or are influenced by the characteristics or behavior of
Mortgage Loans included in a particular Trust Fund, they would similarly pertain
to and be influenced by the characteristics or behavior of the mortgage loans
underlying any MBS included in such Trust Fund.
LIMITED LIQUIDITY
There can be no assurance that a secondary market for the Offered
Certificates of any series will develop or, if it does develop, that it will
provide holders with liquidity of investment or that it will continue for as
long as such Certificates remain outstanding. The Prospectus Supplement for any
series of Offered Certificates may indicate that an underwriter specified
therein intends to establish a secondary market in such Offered Certificates;
however, no underwriter will be obligated to do so. The Certificates will not be
listed on any securities exchange.
LIMITED OBLIGATIONS
The Certificates will not represent an interest in or obligation of the
Depositor, the Master Servicer, GMACCM or any of their affiliates. The only
obligations of the foregoing entities with respect to the Certificates or the
Mortgage Assets will be the obligations (if any) of the Depositor and the Master
Servicer pursuant to certain limited representations and warranties made with
respect to the Mortgage Assets, the Master Servicer's servicing obligations
under the related Pooling and Servicing Agreement (including its limited
obligation to make certain advances in the event of delinquencies on the
Mortgage Loans, but only to the extent deemed recoverable) and pursuant to the
terms of any MBS, and such other limited obligations of the Master Servicer and
the Depositor as may be described in the related Prospectus Supplement. Neither
the Certificates nor the underlying Mortgage Assets will be guaranteed or
insured by the Depositor, the Master Servicer, GMACCM or any of their affiliates
or, unless otherwise specified in the related Prospectus Supplement, by any
governmental agency or instrumentality. Proceeds of the Trust Assets included in
the related Trust Fund for each series of Certificates (including the Mortgage
Assets, any fund or instrument constituting Credit Support and any Cash Flow
Agreements) will be the sole source of payments on the Certificates, and there
will be no recourse to the Depositor, the Master Servicer, GMACCM or any other
entity in the event that such proceeds are insufficient or otherwise unavailable
to make all payments provided for under the Certificates.
CREDIT SUPPORT LIMITATIONS
The Prospectus Supplement for a series of Certificates will describe any
Credit Support provided with respect thereto. Use of Credit Support will be
subject to the conditions and limitations described herein and in the related
Prospectus Supplement. Moreover, such Credit Support may not cover all potential
losses; for example, Credit Support may or may not cover loss by reason of fraud
or negligence by a mortgage loan originator or other parties.
A series of Certificates may include one or more classes of Subordinate
Certificates (which may include Offered Certificates), if so provided in the
related Prospectus Supplement. Although subordination is intended to reduce the
likelihood of temporary shortfalls and ultimate losses to holders of Senior
Certificates, the amount of subordination will be limited and may decline under
certain circumstances. In addition, if principal payments on one or more classes
of Offered Certificates of a series are made in a specified order of priority,
any related Credit Support may be exhausted before the principal of the later
paid classes of Offered Certificates of such series has been repaid in full. As
a result, the impact of losses
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and shortfalls experienced with respect to the Mortgage Assets may fall
primarily upon those classes of Offered Certificates having a later right of
payment. Moreover, if a form of Credit Support covers the Offered Certificates
of more than one series and losses on the related Mortgage Assets exceed the
amount of such Credit Support, it is possible that the holders of Offered
Certificates of one (or more) such series will be disproportionately benefited
by such Credit Support to the detriment of the holders of Offered Certificates
of one (or more) other such series.
The amount of any applicable Credit Support supporting one or more classes
of Offered Certificates, including the subordination of one or more classes of
Certificates, will be determined on the basis of criteria established by each
Rating Agency rating such classes of Certificates based on an assumed level of
defaults, delinquencies and losses on the underlying Mortgage Assets and certain
other factors. There can, however, be no assurance that the loss experience on
the related Mortgage Assets will not exceed such assumed levels. See
"Description of the Certificates--Allocation of Losses and Shortfalls" and
"Description of Credit Support".
YIELD AND PREPAYMENT CONSIDERATIONS
The yield to maturity of the Offered Certificates of each series will depend
on the rate and timing of principal payments (including prepayments,
liquidations due to defaults, and repurchases for breaches of representations
and warranties or document defects) on the Mortgage Loans and the price paid by
Certificateholders. Such yield may be adversely affected by a higher or lower
than anticipated rate of prepayments on the related Mortgage Loans. The yield to
maturity on Stripped Interest Certificates and Stripped Principal Certificates
will be extremely sensitive to the rate of prepayments on the related Mortgage
Loans. In addition, the yield to maturity on certain other types of classes of
Certificates, including Accrual Certificates, Certificates with a Pass-Through
Rate which fluctuates inversely with an index or certain other classes in a
series including more than one class of Certificates, may be relatively more
sensitive to the rate of prepayment on the related Mortgage Loans than other
classes of Certificates. The rate of principal payments on pools of mortgage
loans varies among pools and from time to time is influenced by a variety of
economic, demographic, geographic, social, tax, legal and other factors,
including prevailing mortgage market interest rates and the particular terms of
the Mortgage Loans (e.g., provisions that prohibit voluntary prepayments during
specified periods or impose penalties in connection therewith). There can be no
assurance as to the actual rate of prepayment on the Mortgage Loans in any Trust
Fund or that such rate of prepayment will conform to any model described herein
or in any Prospectus Supplement. See "Yield and Maturity Considerations" herein.
INVESTMENT IN COMMERCIAL AND MULTIFAMILY MORTGAGE LOANS
A description of certain material considerations associated with investments
in mortgage loans is included herein under "Certain Legal Aspects of Mortgage
Loans". Mortgage loans made on the security of multifamily or commercial
property may have a greater likelihood of delinquency and foreclosure, and a
greater likelihood of loss in the event thereof, than loans made on the security
of an owner-occupied single-family property. See "Description of the Trust
Funds--Mortgage Loans--Default and Loss Considerations with Respect to the
Mortgage Loans". The ability of a borrower to repay a loan secured by an
income-producing property typically is dependent primarily upon the successful
operation of such property rather than upon the existence of independent income
or assets of the borrower; thus, the value of an income-producing property is
directly related to the net operating income derived from such property. If the
net operating income of the property is reduced (for example, if rental or
occupancy rates decline or real estate tax rates or other operating expenses
increase), the borrower's ability to repay the loan may be impaired. A number of
the Mortgage Loans may be secured by liens on owner-occupied Mortgaged
Properties or on Mortgaged Properties leased to a single tenant or a small
number of significant tenants. Accordingly, a decline in the financial condition
of the borrower or a
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significant tenant, as applicable, may have a disproportionately greater effect
on the net operating income from such Mortgaged Properties than would be the
case with respect to Mortgaged Properties with multiple tenants. Furthermore,
the value of any Mortgaged Property may be adversely affected by factors
generally incident to interests in real property, including changes in general
or local economic conditions and/or specific industry segments; declines in real
estate values; declines in rental or occupancy rates; increases in interest
rates, real estate tax rates and other operating expenses; changes in
governmental rules, regulations and fiscal policies, including environmental
legislation; natural disasters and civil disturbances such as earthquakes,
hurricanes, floods, eruptions or riots; and other circumstances, conditions or
events beyond the control of a Master Servicer.
Additional considerations may be presented by the type and use of a
particular Mortgaged Property. For instance, Mortgaged Properties that operate
as hospitals and nursing homes are subject to significant governmental
regulation of the ownership, operation, maintenance and financing of health care
institutions. Hotel and motel properties are often operated pursuant to
franchise, management or operating agreements that may be terminable by the
franchisor or operator, and the transferability of a hotel's operating, liquor
and other licenses upon a transfer of the hotel, whether through purchase or
foreclosure, is subject to local law requirements.
It is anticipated that some or all of the Mortgage Loans included in any
Trust Fund will be nonrecourse loans or loans for which recourse may be
restricted or unenforceable. As to any such Mortgage Loan, recourse in the event
of borrower default will be limited to the specific real property and other
assets, if any, that were pledged to secure the Mortgage Loan. However, even
with respect to those Mortgage Loans that provide for recourse against the
borrower and its assets generally, there can be no assurance that enforcement of
such recourse provisions will be practicable, or that the assets of the borrower
will be sufficient to permit a recovery in respect of a defaulted Mortgage Loan
in excess of the liquidation value of the related Mortgaged Property. See
"Certain Legal Aspects of Mortgage Loans-- Foreclosure--Anti-Deficiency
Legislation".
Further, the concentration of default, foreclosure and loss risks in
individual Mortgage Loans in a particular Trust Fund will generally be greater
than for pools of single-family loans because Mortgage Loans in a Trust Fund
will generally consist of a smaller number of higher balance loans than would a
pool of single-family loans of comparable aggregate unpaid principal balance.
BALLOON PAYMENTS; BORROWER DEFAULT
Certain of the Mortgage Loans included in a Trust Fund may be non-amortizing
or only partially amortizing over their terms to maturity and, thus, will
require substantial payments of principal and interest (that is, balloon
payments) at their stated maturity. Mortgage Loans of this type involve a
greater likelihood of default than self-amortizing loans because the ability of
a borrower to make a balloon payment typically will depend upon its ability
either to refinance the loan or to sell the related Mortgaged Property. The
ability of a borrower to accomplish either of these goals will be affected by a
number of factors, including the value of the related Mortgaged Property, the
level of available mortgage rates at the time of sale or refinancing, the
borrower's equity in the related Mortgaged Property, the financial condition and
operating history of the borrower and the related Mortgaged Property, tax laws,
rent control laws (with respect to certain residential properties), Medicaid and
Medicare reimbursement rates (with respect to hospitals and nursing homes),
prevailing general economic conditions and the availability of credit for loans
secured by multifamily or commercial, as the case may be, real properties
generally. Neither the Depositor nor any of its affiliates will be required to
refinance any Mortgage Loan.
If and to the extent described herein and in the related Prospectus
Supplement, in order to maximize recoveries on defaulted Mortgage Loans, the
Master Servicer or a Special Servicer will be permitted (within prescribed
limits) to extend and modify Mortgage Loans that are in default or as to which a
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payment default is imminent. See "The Pooling and Servicing
Agreements--Realization upon Defaulted Mortgage Loans". While a Master Servicer
or a Special Servicer generally will be required to determine that any such
extension or modification is reasonably likely to produce a greater recovery
than liquidation, taking into account the time value of money, there can be no
assurance that any such extension or modification will in fact increase the
present value of receipts from or proceeds of the affected Mortgage Loans.
LEASES AND RENTS
Each Mortgage Loan included in any Trust Fund secured by Mortgaged Property
that is subject to leases typically will be secured by an assignment of leases
and rents pursuant to which the borrower assigns to the lender its right, title
and interest as landlord under the leases of the related Mortgaged Property, and
the income derived therefrom, as further security for the related Mortgage Loan,
while retaining a license to collect rents for so long as there is no default.
If the borrower defaults, the license terminates and the lender is entitled to
collect rents. Some state laws may require that the lender take possession of
the Mortgaged Property and obtain a judicial appointment of a receiver before
becoming entitled to collect the rents. In addition, if bankruptcy or similar
proceedings are commenced by or in respect of the borrower, the lender's ability
to collect the rents may be adversely affected. See "Certain Legal Aspects of
Mortgage Loans--Leases and Rents".
ENVIRONMENTAL CONSIDERATIONS
Under the laws of certain states, contamination of real property may give
rise to a lien on the property to assure the costs of cleanup. In several
states, such a lien has priority over an existing mortgage lien on such
property. In addition, under the laws of some states and under the federal
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended, a lender may be liable, as an "owner" or "operator", for costs of
addressing releases or threatened releases of hazardous substances at a
property, if agents or employees of the lender have become sufficiently involved
in the operations of the borrower, regardless of whether the environmental
damage or threat was caused by the borrower or a prior owner. A lender also
risks such liability on foreclosure of the mortgage.
DESCRIPTION OF THE TRUST FUNDS
GENERAL
The primary assets of each Trust Fund will consist of Mortgage Loans (see
"--Mortgage Loans" below), MBS (see "--MBS" below) or a combination of Mortgage
Loans and MBS. Each Trust Fund will be established by the Depositor. Each
Mortgage Asset will be selected by the Depositor for inclusion in a Trust Fund
from among those purchased, either directly or indirectly, from a prior holder
thereof (a "Mortgage Asset Seller"), which prior holder may or may not be the
originator of such Mortgage Loan or the issuer of such MBS and may be GMACCM or
another affiliate of the Depositor. The Mortgage Assets will not be guaranteed
or insured by the Depositor, GMACCM or any of their affiliates or, unless
otherwise provided in the related Prospectus Supplement, by any governmental
agency or instrumentality or by any other person. The discussion below under the
heading "--Mortgage Loans", unless otherwise noted, applies equally to mortgage
loans underlying any MBS included in a particular Trust Fund.
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MORTGAGE LOANS
GENERAL. The Mortgage Loans will be evidenced by promissory notes (the
"Mortgage Notes") secured by mortgages, deeds of trust or similar security
instruments (the "Mortgages") that create first or junior liens on fee or
leasehold estates in properties (the "Mortgaged Properties") consisting of (i)
residential properties consisting of five or more rental or cooperatively-owned
dwelling units in high-rise, mid-rise or garden apartment buildings or other
residential structures ("Multifamily Properties") or (ii) office buildings,
retail stores and establishments, hotels or motels, nursing homes, hospitals or
other health care-related facilities, mobile home parks, warehouse facilities,
mini-warehouse facilities, self-storage facilities, industrial plants, parking
lots, mixed use or various other types of income-producing properties or
unimproved land ("Commercial Properties"). The Multifamily Properties may
include mixed commercial and residential structures and apartment buildings
owned by private cooperative housing corporations ("Cooperatives"). Unless
otherwise specified in the related Prospectus Supplement, each Mortgage will
create a first priority mortgage lien on a borrower's fee estate in a Mortgaged
Property. If a Mortgage creates a lien on a borrower's leasehold estate in a
property, then, unless otherwise specified in the related Prospectus Supplement,
the term of any such leasehold will exceed the term of the Mortgage Note by at
least ten years. Unless otherwise specified in the related Prospectus
Supplement, each Mortgage Loan will have been originated by a person (the
"Originator") other than the Depositor; however, the Originator may be GMACCM
or, alternatively, may be or may have been another affiliate of the Depositor.
If so provided in the related Prospectus Supplement, Mortgage Assets for a
series of Certificates may include Mortgage Loans secured by junior liens, and
the loans secured by the related senior liens ("Senior Liens") may not be
included in the Mortgage Pool. The primary risk to holders of Mortgage Loans
secured by junior liens is the possibility that adequate funds will not be
received in connection with a foreclosure of the related Senior Liens to satisfy
fully both the Senior Liens and the Mortgage Loan. In the event that a holder of
a Senior Lien forecloses on a Mortgaged Property, the proceeds of the
foreclosure or similar sale will be applied first to the payment of court costs
and fees in connection with the foreclosure, second to real estate taxes, third
in satisfaction of all principal, interest, prepayment or acceleration
penalties, if any, and any other sums due and owing to the holder of the Senior
Liens. The claims of the holders of the Senior Liens will be satisfied in full
out of proceeds of the liquidation of the related Mortgage Property, if such
proceeds are sufficient, before the Trust Fund as holder of the junior lien
receives any payments in respect of the Mortgage Loan. If the Master Servicer
were to foreclose on any Mortgage Loan, it would do so subject to any related
Senior Liens. In order for the debt related to such Mortgage Loan to be paid in
full at such sale, a bidder at the foreclosure sale of such Mortgage Loan would
have to bid an amount sufficient to pay off all sums due under the Mortgage Loan
and any Senior Liens or purchase the Mortgaged Property subject to such Senior
Liens. In the event that such proceeds from a foreclosure or similar sale of the
related Mortgaged Property are insufficient to satisfy all Senior Liens and the
Mortgage Loan in the aggregate, the Trust Fund, as the holder of the junior
lien, and, accordingly, holders of one or more classes of the Certificates of
the related series bear (i) the risk of delay in distributions while a
deficiency judgment against the borrower is obtained and (ii) the risk of loss
if the deficiency judgment is not realized upon. Moreover, deficiency judgments
may not be available in certain jurisdictions or the Mortgage Loan may be
nonrecourse.
If so specified in the related Prospectus Supplement, Mortgage Assets for a
series of Certificates may include Mortgage Loans made on the security of real
estate projects under construction. In that case, the related Prospectus
Supplement will describe the procedures and timing for making disbursements from
construction reserve funds as portions of the related real estate project are
completed. In addition, the Mortgage Assets for a particular series of
Certificates may include Mortgage Loans that are delinquent or non-performing as
of the date such Certificates are issued. In that case, the related Prospectus
Supplement will set forth, as to each such Mortgage Loan, available information
as to the period of such delinquency or non-performance, any forbearance
arrangement then in effect, the
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condition of the related Mortgaged Property and the ability of the Mortgaged
Property to generate income to service the mortgage debt.
DEFAULT AND LOSS CONSIDERATIONS WITH RESPECT TO THE MORTGAGE LOANS. Mortgage
loans secured by liens on income-producing properties are substantially
different from loans made on the security of owner-occupied single-family homes.
The repayment of a loan secured by a lien on an income-producing property is
typically dependent upon the successful operation of such property (that is, its
ability to generate income). Moreover, some or all of the Mortgage Loans
included in a particular Trust Fund may be non-recourse loans, which means that,
absent special facts, recourse in the case of default will be limited to the
Mortgaged Property and such other assets, if any, that were pledged to secure
repayment of the Mortgage Loan.
Lenders typically look to the Debt Service Coverage Ratio of a loan secured
by income-producing property as an important factor in evaluating the likelihood
of default on such a loan. Unless otherwise defined in the related Prospectus
Supplement, the "Debt Service Coverage Ratio," "Underwritten Debt Service
Coverage Ratio" or "Underwritten DSCR" means, with respect to any Mortgage Loan,
or with respect to a Mortgage Loan evidenced by one Mortgage Note, but secured
by multiple Mortgaged Properties, (a) the Underwritten Cash flow for the
Mortgaged Property, divided by (b) the Annual Debt Service for such Mortgage
Loan. "Underwritten Cash Flow" with respect to any Mortgaged Property, means an
estimate of cash flow available for debt service in a typical year of stable,
normal operations. In general, it is the estimated revenue derived from the use
and operation of such Mortgaged Property less the sum of (a) estimated operating
expenses (such as utilities, administrative expenses, repairs and maintenance,
management and franchise fees and advertising), (b) fixed expenses (such as
insurance, real estate taxes and, if applicable, ground lease payments) and (c)
capital expenditures and reserves for capital expenditures, including tenant
improvement costs and leasing commissions. Underwritten Cash Flow generally does
not reflect interest expense and non-cash items such as depreciation and
amortization. "Annual Debt Service" means for any Mortgage Loan 12 times the
monthly payment in effect as of the Cut-off Date or, for any Mortgage Loans that
pay interest only for a period of time, 12 times the monthly payment in effect
at the end of such period. The Underwritten Cash Flow of a Mortgaged Property
will generally fluctuate over time and may or may not be sufficient to cover
debt service on the related Mortgage Loan at any given time. As the primary
source of the operating revenues of a non-owner occupied, income-producing
property, rental income (and, with respect to a Mortgage Loan secured by a
Cooperative apartment building, maintenance payments from tenant-stockholders of
a Cooperative) may be affected by the condition of the applicable real estate
market and/or area economy. In addition, properties typically leased, occupied
or used on a short-term basis, such as certain health care-related facilities,
hotels and motels, and mini-warehouse and self-storage facilities, tend to be
affected more rapidly by changes in market or business conditions than do
properties typically leased for longer periods, such as warehouses, retail
stores, office buildings and industrial plants. Commercial Properties may be
owner-occupied or leased to a small number of tenants. Thus, the Underwritten
Cash Flow of such a Mortgaged Property may depend substantially on the financial
condition of the borrower or a tenant, and Mortgage Loans secured by liens on
such properties may pose a greater likelihood of default and loss than loans
secured by liens on Multifamily Properties or on multi-tenant Commercial
Properties.
Increases in operating expenses due to the general economic climate or
economic conditions in a locality or industry segment, such as increases in
interest rates, real estate tax rates, energy costs, labor costs and other
operating expenses, and/or to changes in governmental rules, regulations and
fiscal policies, may also affect the likelihood of default on a Mortgage Loan.
As may be further described in the related Prospectus Supplement, in some cases
leases of Mortgaged Properties may provide that the lessee, rather than the
borrower/landlord, is responsible for payment of operating expenses ("Net
Leases"). However, the existence of such "net of expense" provisions will result
in stable Underwritten
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Cash Flow to the borrower/landlord only to the extent that the lessee is able to
absorb operating expense increases while continuing to make rent payments.
Lenders also look to the Loan-to-Value Ratio of a mortgage loan as a factor
in evaluating the likelihood of loss if a property must be liquidated following
a default. Unless otherwise defined in the related Prospectus Supplement, the
"Loan-to-Value Ratio" of a Mortgage Loan at any given time is the ratio
(expressed as a percentage) of (i) the then outstanding principal balance of the
Mortgage Loan and any other loans senior thereto that are secured by the related
Mortgaged Property to (ii) the Value of the related Mortgaged Property. Unless
otherwise specified in the related Prospectus Supplement, the "Value" of a
Mortgaged Property will be its fair market value determined in an appraisal
obtained by the Originator at the origination of such loan. The lower the
Loan-to-Value Ratio, the greater the percentage of the borrower's equity in a
Mortgaged Property, and thus (a) the greater the incentive of the borrower to
perform under the terms of the related Mortgage Loan (in order to protect such
equity) and (b) the greater the cushion provided to the lender against loss on
liquidation following a default.
Loan-to-Value Ratios will not necessarily constitute an accurate measure of
the likelihood of liquidation loss in a pool of Mortgage Loans. For example, the
value of a Mortgaged Property as of the date of initial issuance of the related
series of Certificates may be less than the Value determined at loan
origination, and will likely continue to fluctuate from time to time based upon
certain factors including changes in economic conditions and the real estate
market. Moreover, even when current, an appraisal is not necessarily a reliable
estimate of value. Appraised values of income-producing properties are generally
based on the market comparison method (recent resale value of comparable
properties at the date of the appraisal), the cost replacement method (the cost
of replacing the property at such date), the income capitalization method (a
projection of value based upon the property's projected net cash flow), or upon
a selection from or interpolation of the values derived from such methods. Each
of these appraisal methods can present analytical difficulties. It is often
difficult to find truly comparable properties that have recently been sold; the
replacement cost of a property may have little to do with its current market
value; and income capitalization is inherently based on inexact projections of
income and expense and the selection of an appropriate capitalization rate and
discount rate. Where more than one of these appraisal methods are used and
provide significantly different results, an accurate determination of value and,
correspondingly, a reliable analysis of the likelihood of default and loss, is
even more difficult.
Although there may be multiple methods for determining the value of a
Mortgaged Property, value will in all cases be affected by property performance.
As a result, if a Mortgage Loan defaults because the income generated by the
related Mortgaged Property is insufficient to cover operating costs and expenses
and pay debt service, then the value of the Mortgaged Property will reflect such
and a liquidation loss may occur.
While the Depositor believes that the foregoing considerations are important
factors that generally distinguish loans secured by liens on income-producing
real estate from single-family mortgage loans, there can be no assurance that
all of such factors will in fact have been prudently considered by the
Originators of the Mortgage Loans, or that, for a particular Mortgage Loan, they
are complete or relevant. See "Risk Factors--Investment in Commercial and
Multifamily Mortgage Loans" and "--Balloon Payments; Borrower Default".
PAYMENT PROVISIONS OF THE MORTGAGE LOANS. Unless otherwise specified in the
related Prospectus Supplement, all of the Mortgage Loans will (i) have had
original terms to maturity of not more than 40 years and (ii) provide for
scheduled payments of principal, interest or both, to be made on specified dates
("Due Dates") that occur monthly, quarterly, semi-annually or annually. A
Mortgage Loan (i) may provide for no accrual of interest or for accrual of
interest thereon at a Mortgage Rate that is fixed over its term or that adjusts
from time to time, or that may be converted at the borrower's election from an
adjustable to a fixed Mortgage Rate, or from a fixed to an adjustable Mortgage
Rate, (ii) may provide for
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level payments to maturity or for payments that adjust from time to time to
accommodate changes in the Mortgage Rate or to reflect the occurrence of certain
events, and may permit negative amortization, (iii) may be fully amortizing or
may be partially amortizing or non-amortizing, with a balloon payment due on its
stated maturity date, and (iv) may prohibit over its term or for a certain
period prepayments (the period of such prohibition, a "Lock-Out Period" and its
date of expiration, a "Lock-Out Date") and/or require payment of a premium or a
yield maintenance penalty (a "Prepayment Premium") in connection with certain
prepayments, in each case as described in the related Prospectus Supplement. A
Mortgage Loan may also contain a provision that entitles the lender to a share
of appreciation of the related Mortgaged Property, or profits realized from the
operation or disposition of such Mortgaged Property or the benefit, if any,
resulting from the refinancing of the Mortgage Loan (any such provision, an
"Equity Participation"), as described in the related Prospectus Supplement.
MORTGAGE LOAN INFORMATION IN PROSPECTUS SUPPLEMENTS. Each Prospectus
Supplement will contain certain information pertaining to the Mortgage Loans in
the related Trust Fund, which, to the extent then applicable and specifically
known to the Depositor, will generally include the following: (i) the aggregate
outstanding principal balance and the largest, smallest and average outstanding
principal balance of the Mortgage Loans, (ii) the type or types of property that
provide security for repayment of the Mortgage Loans, (iii) the earliest and
latest origination date and maturity date of the Mortgage Loans, (iv) the
original and remaining terms to maturity of the Mortgage Loans, or the
respective ranges thereof, and the weighted average original and remaining terms
to maturity of the Mortgage Loans, (v) the Loan-to-Value Ratios of the Mortgage
Loans (either at origination or as of a more recent date), or the range thereof,
and the weighted average of such Loan-to-Value Ratios, (vi) the Mortgage Rates
borne by the Mortgage Loans, or range thereof, and the weighted average Mortgage
Rate borne by the Mortgage Loans, (vii) with respect to Mortgage Loans with
adjustable Mortgage Rates ("ARM Loans"), the index or indices upon which such
adjustments are based, the adjustment dates, the range of gross margins and the
weighted average gross margin, and any limits on Mortgage Rate adjustments at
the time of any adjustment and over the life of the ARM Loan, (viii) information
regarding the payment characteristics of the Mortgage Loans, including, without
limitation, balloon payment and other amortization provisions, Lock-out Periods
and Prepayment Premiums, (ix) the Debt Service Coverage Ratios of the Mortgage
Loans (either at origination or as of a more recent date), or the range thereof,
and the weighted average of such Debt Service Coverage Ratios, and (x) the
geographic distribution of the Mortgaged Properties on a state-by-state basis.
In appropriate cases, the related Prospectus Supplement will also contain
certain information available to the Depositor that pertains to the provisions
of leases and the nature of tenants of the Mortgaged Properties. If the
Depositor is unable to provide the specific information described above at the
time Offered Certificates of a series are initially offered, more general
information of the nature described above will be provided in the related
Prospectus Supplement, and specific information will be set forth in a report
which will be available to purchasers of those Certificates at or before the
initial issuance thereof and will be filed as part of a Current Report on Form
8-K with the Commission within fifteen days following such issuance.
MBS
MBS may include (i) private-label (that is, not guaranteed or insured by the
United States or any agency or instrumentality thereof) mortgage participations,
mortgage pass-through certificates or other mortgage-backed securities or (ii)
certificates insured or guaranteed by the Federal Home Loan Mortgage Corporation
("FHLMC"), the Federal National Mortgage Association ("FNMA"), the Governmental
National Mortgage Association or the Federal Agricultural Mortgage Corporation
("FAMC"), provided that, unless otherwise specified in the related Prospectus
Supplement, each MBS will evidence an interest in, or will be secured by a
pledge of, mortgage loans that conform to the descriptions of the Mortgage Loans
contained herein.
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Any MBS will have been issued pursuant to a participation and servicing
agreement, a pooling and servicing agreement, an indenture or similar agreement
(an "MBS Agreement"). The issuer of the MBS (the "MBS Issuer") and/or the
servicer of the underlying mortgage loans (the "MBS Servicer") will have entered
into the MBS Agreement, generally with a trustee (the "MBS Trustee") or, in the
alternative, with the original purchaser or purchasers of the MBS.
The MBS may have been issued in one or more classes with characteristics
similar to the classes of Certificates described herein. Distributions in
respect of the MBS will be made by the MBS Issuer, the MBS Servicer or the MBS
Trustee on the dates specified in the related Prospectus Supplement. The MBS
Issuer or the MBS Servicer or another person specified in the related Prospectus
Supplement may have the right or obligation to repurchase or substitute assets
underlying the MBS after a certain date or under other circumstances specified
in the related Prospectus Supplement.
Reserve funds, subordination or other credit support similar to that
described for the Certificates under "Description of Credit Support" may have
been provided with respect to the MBS. The type, characteristics and amount of
such credit support, if any, will be a function of the characteristics of the
underlying mortgage loans and other factors and generally will have been
established on the basis of the requirements of any Rating Agency that may have
assigned a rating to the MBS, or by the initial purchasers of the MBS.
The Prospectus Supplement for a series of Certificates that evidence
interests in MBS will specify, to the extent available, (i) the aggregate
approximate initial and outstanding principal amount and type of the MBS to be
included in the Trust Fund, (ii) the original and remaining term to stated
maturity of the MBS, if applicable, (iii) the pass-through or bond rate of the
MBS or the formula for determining such rates, (iv) the payment characteristics
of the MBS, (v) the MBS Issuer, MBS Servicer and MBS Trustee, as applicable,
(vi) a description of the credit support, if any, (vii) the circumstances under
which the related underlying mortgage loans, or the MBS themselves, may be
purchased prior to their maturity, (viii) the terms on which mortgage loans may
be substituted for those originally underlying the MBS, (ix) the type of
mortgage loans underlying the MBS and, to the extent available to the Depositor
and appropriate under the circumstances, such other information in respect of
the underlying mortgage loans described under "--Mortgage Loans--Mortgage Loan
Information in Prospectus Supplements", and (x) the characteristics of any cash
flow agreements that relate to the MBS.
CERTIFICATE ACCOUNTS
Each Trust Fund will include one or more accounts (collectively, the
"Certificate Account") established and maintained on behalf of the
Certificateholders into which all payments and collections received or advanced
with respect to the Mortgage Assets and other assets in the Trust Fund will be
deposited to the extent described herein and in the related Prospectus
Supplement. See "The Pooling and Servicing Agreements--Certificate Account".
CREDIT SUPPORT
If so provided in the Prospectus Supplement for a series of Certificates,
partial or full protection against certain defaults and losses on the Mortgage
Assets in the related Trust Fund may be provided to one or more classes of
Certificates of such series in the form of subordination of one or more other
classes of Certificates of such series or by one or more other types of credit
support, such as a letter of credit, insurance policy, guarantee or reserve
fund, among others, or a combination thereof. The amount and types of Credit
Support, the identification of the entity providing it (if applicable) and
related information with respect to each type of Credit Support, if any, will be
set forth in the Prospectus Supplement for a series of Certificates. See "Risk
Factors--Credit Support Limitations" and "Description of Credit Support".
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CASH FLOW AGREEMENTS
If so provided in the Prospectus Supplement for a series of Certificates,
the related Trust Fund may include guaranteed investment contracts pursuant to
which moneys held in the funds and accounts established for such series will be
invested at a specified rate. The Trust Fund may also include certain other
agreements, such as interest rate exchange agreements, interest rate cap or
floor agreements, or other agreements designed to reduce the effects of interest
rate fluctuations on the Mortgage Assets on one or more classes of Certificates.
The principal terms of any such Cash Flow Agreement, including, without
limitation, provisions relating to the timing, manner and amount of payments
thereunder and provisions relating to the termination thereof, will be described
in the related Prospectus Supplement. The related Prospectus Supplement will
also identify the obligor under the Cash Flow Agreement.
YIELD AND MATURITY CONSIDERATIONS
GENERAL
The yield on any Offered Certificate will depend on the price paid by the
Certificateholder, the Pass-Through Rate of the Certificate and the amount and
timing of distributions on the Certificate. See "Risk Factors--Yield and
Prepayment Considerations". The following discussion contemplates a Trust Fund
that consists solely of Mortgage Loans. While the characteristics and behavior
of mortgage loans underlying an MBS can generally be expected to have the same
effect on the yield to maturity and/or weighted average life of a class of
Certificates as will the characteristics and behavior of comparable Mortgage
Loans, the effect may differ due to the payment characteristics of the MBS. If a
Trust Fund includes MBS, the related Prospectus Supplement will discuss the
effect, if any, that the payment characteristics of the MBS may have on the
yield to maturity and weighted average lives of the Offered Certificates of the
related series.
PASS-THROUGH RATE
The Certificates of any class within a series may have a fixed, variable or
adjustable Pass-Through Rate, which may or may not be based upon the interest
rates borne by the Mortgage Loans in the related Trust Fund. The Prospectus
Supplement with respect to any series of Certificates will specify the Pass-
Through Rate for each class of Offered Certificates of such series or, in the
case of a class of Offered Certificates with a variable or adjustable
Pass-Through Rate, the method of determining the Pass-Through Rate; the effect,
if any, of the prepayment of any Mortgage Loan on the Pass-Through Rate of one
or more classes of Offered Certificates; and whether the distributions of
interest on the Offered Certificates of any class will be dependent, in whole or
in part, on the performance of any obligor under a Cash Flow Agreement.
PAYMENT DELAYS
With respect to any series of Certificates, a period of time will elapse
between the date upon which payments on the Mortgage Loans in the related Trust
Fund are due and the Distribution Date on which such payments are passed through
to Certificateholders. That delay will effectively reduce the yield that would
otherwise be produced if payments on such Mortgage Loans were distributed to
Certificateholders on the date they were due.
CERTAIN SHORTFALLS IN COLLECTIONS OF INTEREST
When a principal prepayment in full or in part is made on a Mortgage Loan,
the borrower is generally charged interest on the amount of such prepayment only
through the date of such prepayment, instead of through the Due Date for the
next succeeding scheduled payment. However, interest accrued on any series of
Certificates and distributable thereon on any Distribution Date will generally
correspond to interest accrued on the Mortgage Loans to their respective Due
Dates during the related Due Period.
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Unless otherwise specified in the Prospectus Supplement for a series of
Certificates, a "Due Period" will be a specified time period (generally running
from the second day of one month to the first day of the next month, inclusive)
and all scheduled payments on the Mortgage Loans in the related Trust Fund that
are due during a given Due Period will, to the extent received by a specified
date (the "Determination Date") or otherwise advanced by the related Master
Servicer or other specified person, be distributed to the holders of the
Certificates of such series on the next succeeding Distribution Date.
Consequently, if a prepayment on any Mortgage Loan is distributable to
Certificateholders on a particular Distribution Date, but such prepayment is not
accompanied by interest thereon to the Due Date for such Mortgage Loan in the
related Due Period, then the interest charged to the borrower (net of servicing
and administrative fees) may be less (such shortfall, a "Prepayment Interest
Shortfall") than the corresponding amount of interest accrued and otherwise
payable on the Certificates of the related series. If and to the extent that any
such shortfall is allocated to a class of Offered Certificates, the yield
thereon will be adversely affected. The Prospectus Supplement for each series of
Certificates will describe the manner in which any such shortfalls will be
allocated among the classes of such Certificates. The related Prospectus
Supplement will also describe any amounts available to offset such shortfalls.
YIELD AND PREPAYMENT CONSIDERATIONS
A Certificate's yield to maturity will be affected by the rate of principal
payments on the Mortgage Loans in the related Trust Fund and the allocation
thereof to reduce the principal balance (or notional amount, if applicable) of
such Certificate. The rate of principal payments on the Mortgage Loans in any
Trust Fund will in turn be affected by the amortization schedules thereof
(which, in the case of ARM Loans, may change periodically to accommodate
adjustments to the Mortgage Rates thereon), the dates on which any balloon
payments are due, and the rate of principal prepayments thereon (including for
this purpose, voluntary prepayments by borrowers and also prepayments resulting
from liquidations of Mortgage Loans due to defaults, casualties or condemnations
affecting the Mortgaged Properties, or purchases of Mortgage Loans out of the
related Trust Fund). Because the rate of principal prepayments on the Mortgage
Loans in any Trust Fund will depend on future events and a variety of factors
(as described below), no assurance can be given as to such rate.
The extent to which the yield to maturity of a class of Offered Certificates
of any series may vary from the anticipated yield will depend upon the degree to
which they are purchased at a discount or premium and when, and to what degree,
payments of principal on the Mortgage Loans in the related Trust Fund are in
turn distributed on such Certificates (or, in the case of a class of Stripped
Interest Certificates, result in the reduction of the Notional Amount thereof).
An investor should consider, in the case of any Offered Certificate purchased at
a discount, the risk that a slower than anticipated rate of principal payments
on the Mortgage Loans in the related Trust Fund could result in an actual yield
to such investor that is lower than the anticipated yield and, in the case of
any Offered Certificate purchased at a premium, the risk that a faster than
anticipated rate of principal payments on such Mortgage Loans could result in an
actual yield to such investor that is lower than the anticipated yield. In
addition, if an investor purchases an Offered Certificate at a discount (or
premium), and principal payments are made in reduction of the principal balance
or notional amount of such investor's Offered Certificates at a rate slower (or
faster) than the rate anticipated by the investor during any particular period,
the consequent adverse effects on such investor's yield would not be fully
offset by a subsequent like increase (or decrease) in the rate of principal
payments.
In general, the Notional Amount of a class of Stripped Interest Certificates
will either (i) be based on the principal balances of some or all of the
Mortgage Assets in the related Trust Fund or (ii) equal the Certificate Balances
of one or more of the other classes of Certificates of the same series.
Accordingly, the yield on such Stripped Interest Certificates will be inversely
related to the rate at which payments and other collections of principal are
received on such Mortgage Assets or distributions are made in reduction of the
Certificate Balances of such classes of Certificates, as the case may be.
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Consistent with the foregoing, if a class of Certificates of any series
consists of Stripped Interest Certificates or Stripped Principal Certificates, a
lower than anticipated rate of principal prepayments on the Mortgage Loans in
the related Trust Fund will negatively affect the yield to investors in Stripped
Principal Certificates, and a higher than anticipated rate of principal
prepayments on such Mortgage Loans will negatively affect the yield to investors
in Stripped Interest Certificates. If the Offered Certificates of a series
include any such Certificates, the related Prospectus Supplement will include a
table showing the effect of various constant assumed levels of prepayment on
yields on such Certificates. Such tables will be intended to illustrate the
sensitivity of yields to various constant assumed prepayment rates and will not
be intended to predict, or to provide information that will enable investors to
predict, yields or prepayment rates.
The Depositor is not aware of any relevant publicly available or
authoritative statistics with respect to the historical prepayment experience of
a group of multifamily or commercial mortgage loans. However, the extent of
prepayments of principal of the Mortgage Loans in any Trust Fund may be affected
by a number of factors, including, without limitation, the availability of
mortgage credit, the relative economic vitality of the area in which the
Mortgaged Properties are located, the quality of management of the Mortgaged
Properties, the servicing of the Mortgage Loans, possible changes in tax laws
and other opportunities for investment. In addition, the rate of principal
payments on the Mortgage Loans in any Trust Fund may be affected by the
existence of Lock-out Periods and requirements that principal prepayments be
accompanied by Prepayment Premiums, and by the extent to which such provisions
may be practicably enforced. To the extent enforceable, such provisions could
constitute either an absolute prohibition (in the case of a Lock-out Period) or
a disincentive (in the case of a Prepayment Premium) to a borrower's voluntarily
prepaying its Mortgage Loan.
The rate of prepayment on a pool of mortgage loans is likely to be affected
by prevailing market interest rates for mortgage loans of a comparable type,
term and risk level. When the prevailing market interest rate is below a
mortgage coupon, a borrower may have an increased incentive to refinance its
mortgage loan. Even in the case of ARM Loans, as prevailing market interest
rates decline, and without regard to whether the Mortgage Rates on such ARM
Loans decline in a manner consistent therewith, the related borrowers may have
an increased incentive to refinance for purposes of either (i) converting to a
fixed rate loan and thereby "locking in" such rate or (ii) taking advantage of a
different index, margin or rate cap or floor on another adjustable rate mortgage
loan.
Depending on prevailing market interest rates, the outlook for market
interest rates and economic conditions generally, some borrowers may sell
Mortgaged Properties in order to realize their equity therein, to meet cash flow
needs or to make other investments. In addition, some borrowers may be motivated
by federal and state tax laws (which are subject to change) to sell Mortgaged
Properties prior to the exhaustion of tax depreciation benefits. The Depositor
makes no representation as to the particular factors that will affect the
prepayment of the Mortgage Loans in any Trust Fund, as to the relative
importance of such factors, as to the percentage of the principal balance of
such Mortgage Loans that will be paid as of any date or as to the overall rate
of prepayment on such Mortgage Loans.
WEIGHTED AVERAGE LIFE AND MATURITY
The rate at which principal payments are received on the Mortgage Loans in
any Trust Fund will affect the ultimate maturity and the weighted average life
of one or more classes of the Certificates of such series. Unless otherwise
specified in the related Prospectus Supplement, weighted average life refers to
the average amount of time that will elapse from the date of issuance of an
instrument until each dollar allocable as principal of such instrument is repaid
to the investor.
The weighted average life and maturity of a class of Certificates of any
series will be influenced by the rate at which principal on the related Mortgage
Loans, whether in the form of scheduled amortization or prepayments (for this
purpose, the term "prepayment" includes voluntary prepayments, liquidations due
to default and purchases of Mortgage Loans out of the related Trust Fund), is
paid to such class.
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Prepayment rates on loans are commonly measured relative to a prepayment
standard or model, such as the Constant Prepayment Rate ("CPR") prepayment model
or the Standard Prepayment Assumption ("SPA") prepayment model. CPR represents
an assumed constant rate of prepayment each month (expressed as an annual
percentage) relative to the then outstanding principal balance of a pool of
loans for the life of such loans. SPA represents an assumed variable rate of
prepayment each month (expressed as an annual percentage) relative to the then
outstanding principal balance of a pool of loans, with different prepayment
assumptions often expressed as percentages of SPA. For example, a prepayment
assumption of 100% of SPA assumes prepayment rates of 0.2% per annum of the then
outstanding principal balance of such loans in the first month of the life of
the loans and an additional 0.2% per annum in each month thereafter until the
thirtieth month. Beginning in the thirtieth month, and in each month thereafter
during the life of the loans, 100% of SPA assumes a constant prepayment rate of
6% per annum each month.
Neither CPR nor SPA nor any other prepayment model or assumption purports to
be a historical description of prepayment experience or a prediction of the
anticipated rate of prepayment of any particular pool of loans. Moreover, the
CPR and SPA models were developed based upon historical prepayment experience
for single-family loans. Thus, it is unlikely that the prepayment experience of
the Mortgage Loans included in any Trust Fund will conform to any particular
level of CPR or SPA.
The Prospectus Supplement with respect to each series of Certificates will
contain tables, if applicable, setting forth the projected weighted average life
of each class of Offered Certificates of such series and the percentage of the
initial Certificate Balance of each such class that would be outstanding on
specified Distribution Dates based on the assumptions stated in such Prospectus
Supplement, including assumptions that prepayments on the related Mortgage Loans
are made at rates corresponding to various percentages of CPR or SPA, or at such
other rates specified in such Prospectus Supplement. Such tables and assumptions
will illustrate the sensitivity of the weighted average lives of the
Certificates to various assumed prepayment rates and will not be intended to
predict, or to provide information that will enable investors to predict, the
actual weighted average lives of the Certificates.
OTHER FACTORS AFFECTING YIELD, WEIGHTED AVERAGE LIFE AND MATURITY
BALLOON PAYMENTS; EXTENSIONS OF MATURITY. Some or all of the Mortgage Loans
included in a particular Trust Fund may require that balloon payments be made at
maturity. Because the ability of a borrower to make a balloon payment typically
will depend upon its ability either to refinance the loan or to sell the related
Mortgaged Property, there is a possibility that Mortgage Loans that require
balloon payments may default at maturity, or that the maturity of such a
Mortgage Loan may be extended in connection with a workout. In the case of
defaults, recovery of proceeds may be delayed by, among other things, bankruptcy
of the borrower or adverse conditions in the market where the property is
located. In order to minimize losses on defaulted Mortgage Loans, the Master
Servicer or a Special Servicer, to the extent and under the circumstances set
forth herein and in the related Prospectus Supplement, may be authorized to
modify Mortgage Loans that are in default or as to which a payment default is
imminent. Any defaulted balloon payment or modification that extends the
maturity of a Mortgage Loan may delay distributions of principal on a class of
Offered Certificates and thereby extend the weighted average life of such
Certificates and, if such Certificates were purchased at a discount, reduce the
yield thereon.
NEGATIVE AMORTIZATION. The weighted average life of a class of Certificates
can be affected by Mortgage Loans that permit negative amortization to occur. A
Mortgage Loan that provides for the payment of interest calculated at a rate
lower than the rate at which interest accrues thereon would, in the case of an
ARM Loan, be expected during a period of increasing interest rates to amortize
at a slower rate (and perhaps not at all) than if interest rates were declining
or were remaining constant. Such slower rate of Mortgage Loan amortization would
correspondingly be reflected in a slower rate of amortization for one or more
classes of Certificates of the related series. In addition, negative
amortization on one or
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more Mortgage Loans in any Trust Fund may result in negative amortization on the
Certificates of the related series. The related Prospectus Supplement will
describe, if applicable, the manner in which negative amortization in respect of
the Mortgage Loans in any Trust Fund is allocated among the respective classes
of Certificates of the related series. The portion of any Mortgage Loan negative
amortization allocated to a class of Certificates may result in a deferral of
some or all of the interest payable thereon, which deferred interest may be
added to the Certificate Balance thereof. Accordingly, the weighted average
lives of Mortgage Loans that permit negative amortization (and that of the
classes of Certificates to which any such negative amortization would be
allocated or that would bear the effects of a slower rate of amortization on
such Mortgage Loans) may increase as a result of such feature.
Negative amortization also may occur in respect of an ARM Loan that (i)
limits the amount by which its scheduled payment may adjust in response to a
change in its Mortgage Rate, (ii) provides that its scheduled payment will
adjust less frequently than its Mortgage Rate or (iii) provides for constant
scheduled payments notwithstanding adjustments to its Mortgage Rate.
Accordingly, during a period of declining interest rates, the scheduled payment
on such a Mortgage Loan may exceed the amount necessary to amortize the loan
fully over its remaining amortization schedule and pay interest at the then
applicable Mortgage Rate, thereby resulting in the accelerated amortization of
such Mortgage Loan. Any such acceleration in amortization of its principal
balance will shorten the weighted average life of such Mortgage Loan and,
correspondingly, the weighted average lives of those classes of Certificates
entitled to a portion of the principal payments on such Mortgage Loan.
The extent to which the yield on any Offered Certificate will be affected by
the inclusion in the related Trust Fund of Mortgage Loans that permit negative
amortization, will depend upon (i) whether such Offered Certificate was
purchased at a premium or a discount and (ii) the extent to which the payment
characteristics of such Mortgage Loans delay or accelerate the distributions of
principal on such Certificate (or, in the case of a Stripped Interest
Certificate, delay or accelerate the reduction of the notional amount thereof).
See "--Yield and Prepayment Considerations" above.
FORECLOSURES AND PAYMENT PLANS. The number of foreclosures and the
principal amount of the Mortgage Loans that are foreclosed in relation to the
number and principal amount of Mortgage Loans that are repaid in accordance with
their terms will affect the weighted average lives of those Mortgage Loans and,
accordingly, the weighted average lives of and yields on the Certificates of the
related series. Servicing decisions made with respect to the Mortgage Loans,
including the use of payment plans prior to a demand for acceleration and the
restructuring of Mortgage Loans in bankruptcy proceedings or otherwise, may also
have an effect upon the payment patterns of particular Mortgage Loans and thus
the weighted average lives of and yields on the Certificates of the related
series.
LOSSES AND SHORTFALLS ON THE MORTGAGE ASSETS. The yield to holders of the
Offered Certificates of any series will directly depend on the extent to which
such holders are required to bear the effects of any losses or shortfalls in
collections arising out of defaults on the Mortgage Loans in the related Trust
Fund and the timing of such losses and shortfalls. In general, the earlier that
any such loss or shortfall occurs, the greater will be the negative effect on
yield for any class of Certificates that is required to bear the effects
thereof.
The amount of any losses or shortfalls in collections on the Mortgage Assets
in any Trust Fund (to the extent not covered or offset by draws on any reserve
fund or under any instrument of Credit Support) will be allocated among the
respective classes of Certificates of the related series in the priority and
manner, and subject to the limitations, specified in the related Prospectus
Supplement. As described in the related Prospectus Supplement, such allocations
may be effected by a reduction in the entitlements to interest and/or
Certificate Balances of one or more such classes of Certificates, and/or by
establishing a priority of payments among such classes of Certificates.
The yield to maturity on a class of Subordinate Certificates may be
extremely sensitive to losses and shortfalls in collections on the Mortgage
Loans in the related Trust Fund.
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ADDITIONAL CERTIFICATE AMORTIZATION. In addition to entitling the holders
thereof to a specified portion (which may during specified periods range from
none to all) of the principal payments received on the Mortgage Assets in the
related Trust Fund, one or more classes of Certificates of any series, including
one or more classes of Offered Certificates of such series, may provide for
distributions of principal thereof from (i) amounts attributable to interest
accrued but not currently distributable on one or more classes of Accrual
Certificates, (ii) Excess Funds or (iii) any other amounts described in the
related Prospectus Supplement. Unless otherwise specified in the related
Prospectus Supplement, "Excess Funds" will, in general, represent that portion
of the amounts distributable in respect of the Certificates of any series on any
Distribution Date that represent (i) interest received or advanced on the
Mortgage Assets in the related Trust Fund that is in excess of the interest
currently accrued on the Certificates of such series, or (ii) Prepayment
Premiums, payments from Equity Participations or any other amounts received on
the Mortgage Assets in the related Trust Fund that do not constitute interest
thereon or principal thereof.
The amortization of any class of Certificates out of the sources described
in the preceding paragraph would shorten the weighted average life of such
Certificates and, if such Certificates were purchased at a premium, reduce the
yield thereon. The related Prospectus Supplement will discuss the relevant
factors to be considered in determining whether distributions of principal of
any class of Certificates out of such sources is likely to have any material
effect on the rate at which such Certificates are amortized and the consequent
yield with respect thereto.
OPTIONAL EARLY TERMINATION. Unless otherwise provided in the related
Prospectus Supplement, the Master Servicer, the Depositor or, if specified in
the related Prospectus Supplement, the holder of the residual interest in a
REMIC may at its option either (i) effect early retirement of a series of
Certificates through the purchase of the assets in the related Trust Fund or
(ii) purchase, in whole but not in part, the Certificates specified in the
related Prospectus Supplement; in each case under the circumstances and in the
manner set forth herein under "Description of the Certificates-Termination;
Retirement of Certificates" and in the related Prospectus Supplement. In the
absence of other factors, any such early retirement of a class of Offered
Certificates would shorten the weighted average life thereof and, if such
Certificates were purchased at premium, reduce the yield thereon.
THE DEPOSITOR
GMAC Commercial Mortgage Securities, Inc. is a wholly-owned subsidiary of
GMACCM which is a wholly-owned subsidiary of GMAC Mortgage Group, Inc., a
Michigan Corporation. The Depositor was incorporated in the State of Delaware on
June 22, 1995. The Depositor was organized for the purpose of serving as a
private secondary mortgage market conduit. The Depositor maintains its principal
office at 650 Dresher Road, Horsham, Pennsylvania 19044. Its telephone number is
(215) 328-3480. The Depositor does not have, nor is it expected in the future to
have, any significant assets.
GMAC COMMERCIAL MORTGAGE CORPORATION
Unless otherwise specified in the related Prospectus Supplement, GMAC
Commercial Mortgage Corporation, an affiliate of the Company and a corporation
duly organized and existing under the laws of the State of California, will act
as the Master Servicer or Manager for a series of Certificates.
GMACCM buys mortgage loans primarily through its branch network and also
from mortgage loan originators or sellers nationwide and services mortgage loans
for its own account and for others. GMACCM's principal executive offices are
located at 650 Dresher Road, Horsham, Pennsylvania 19044. Its telephone number
is (215) 328-4622. GMACCM conducts operations from its headquarters in
Pennsylvania and from offices located in California, Colorado, the District of
Columbia, Illinois, Michigan, Minnesota, Missouri, Nebraska, New York, Ohio,
Texas, Virginia, Washington and Wisconsin.
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DESCRIPTION OF THE CERTIFICATES
GENERAL
Each series of Certificates will represent the entire beneficial ownership
interest in the Trust Fund created pursuant to the related Pooling and Servicing
Agreement. As described in the related Prospectus Supplement, the Certificates
of each series, including the Offered Certificates of such series, may consist
of one or more classes of Certificates that, among other things: (i) provide for
the accrual of interest on the Certificate Balance or Notional Amount thereof at
a fixed, variable or adjustable rate; (ii) constitute Senior Certificates or
Subordinate Certificates; (iii) constitute Stripped Interest Certificates or
Stripped Principal Certificates; (iv) provide for distributions of interest
thereon or principal thereof that commence only after the occurrence of certain
events, such as the retirement of one or more other classes of Certificates of
such series; (v) provide for distributions of principal thereof to be made, from
time to time or for designated periods, at a rate that is faster (and, in some
cases, substantially faster) or slower (and, in some cases, substantially
slower) than the rate at which payments or other collections of principal are
received on the Mortgage Assets in the related Trust Fund; (vi) provide for
distributions of principal thereof to be made, subject to available funds, based
on a specified principal payment schedule or other methodology; or (vii) provide
for distributions based on collections on the Mortgage Assets in the related
Trust Fund attributable to Prepayment Premiums and Equity Participations.
If so specified in the related Prospectus Supplement, a class of
Certificates may have two or more component parts, each having characteristics
that are otherwise described herein as being attributable to separate and
distinct classes. For example, a class of Certificates may have a Certificate
Balance on which it accrues interest at a fixed, variable or adjustable rate.
Such class of Certificates may also have certain characteristics attributable to
Stripped Interest Certificates insofar as it may also entitle the holders
thereof to distributions of interest accrued on a Notional Amount at a different
fixed, variable or adjustable rate. In addition, a class of Certificates may
accrue interest on one portion of its Certificate Balance at one fixed, variable
or adjustable rate and on another portion of its Certificate Balance at a
different fixed, variable or adjustable rate.
Each class of Offered Certificates of a series will be issued in minimum
denominations corresponding to the principal balances or, in case of certain
classes of Stripped Interest Certificates or REMIC Residual Certificates,
notional amounts or percentage interests, specified in the related Prospectus
Supplement. As provided in the related Prospectus Supplement, one or more
classes of Offered Certificates of any series may be issued in fully registered,
definitive form (such Certificates, "Definitive Certificates") or may be offered
in book-entry format (such Certificates, "Book-Entry Certificates") through the
facilities of The Depository Trust Company ("DTC"). The Offered Certificates of
each series (if issued as Definitive Certificates) may be transferred or
exchanged, subject to any restrictions on transfer described in the related
Prospectus Supplement, at the location specified in the related Prospectus
Supplement, without the payment of any service charges, other than any tax or
other governmental charge payable in connection therewith. Interests in a class
of Book-Entry Certificates will be transferred on the book-entry records of DTC
and its participating organizations.
DISTRIBUTIONS
Distributions on the Certificates of each series will be made on each
Distribution Date from the Available Distribution Amount for such series and
such Distribution Date. Unless otherwise provided in the related Prospectus
Supplement, the "Available Distribution Amount" for any series of Certificates
and any Distribution Date will refer to the total of all payments or other
collections (or advances in lieu thereof) on, under or in respect of the
Mortgage Assets and any other assets included in the related Trust Fund that are
available for distribution to the holders of Certificates of such series on such
date. The particular components of the Available Distribution Amount for any
series and Distribution Date will be more specifically described in the related
Prospectus Supplement Unless otherwise provided in the related Prospectus
Supplement, the Distribution Date for a series of Certificates will be the 25th
day of
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each month (or, if any such 25th day is not a business day, the next succeeding
business day), commencing in the month immediately following the month in which
such series of Certificates is issued.
Except as otherwise specified in the related Prospectus Supplement,
distributions on the Certificates of each series (other than the final
distribution in retirement of any such Certificate) will be made to the persons
in whose names such Certificates are registered at the close of business on the
last business day of the month preceding the month in which the applicable
Distribution Date occurs (the "Record Date"). All distributions with respect to
each class of Certificates on each Distribution Date will be allocated pro rata
among the outstanding Certificates in such class in proportion to the respective
Percentage Interests evidenced thereby unless otherwise specified in the related
Prospectus Supplement. Payments will be made either by wire transfer in
immediately available funds to the account of a Certificateholder at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
has provided the person required to make such payments with wiring instructions
no later than the related Record Date or such other date specified in the
related Prospectus Supplement (and, if so provided in the related Prospectus
Supplement, such Certificateholder holds Certificates in the requisite amount or
denomination specified therein), or by check mailed to the address of such
Certificateholder as it appears on the Certificate Register; provided, however,
that the final distribution in retirement of any class of Certificates (whether
Definitive Certificates or Book-Entry Certificates) will be made only upon
presentation and surrender of such Certificates at the location specified in the
notice to Certificateholders of such final distribution. The undivided
percentage interest (the "Percentage Interest") represented by an Offered
Certificate of a particular class will be equal to the percentage obtained by
dividing the initial principal balance or notional amount of such Certificate by
the initial Certificate Balance or Notional Amount of such class.
DISTRIBUTIONS OF INTEREST ON THE CERTIFICATES
Each class of Certificates of each series (other than certain classes of
Stripped Principal Certificates and certain classes of REMIC Residual
Certificates that have no Pass-Through Rate) may have a different Pass-Through
Rate, which in each case may be fixed, variable or adjustable. The related
Prospectus Supplement will specify the Pass-Through Rate or, in the case of a
variable or adjustable Pass-Through Rate, the method for determining the
Pass-Through Rate, for each class. Unless otherwise specified in the related
Prospectus Supplement, interest on the Certificates of each series will be
calculated on the basis of a 360-day year consisting of twelve 30-day months.
Distributions of interest in respect of any class of Certificates (other
than a class of Accrual Certificates, which will be entitled to distributions of
accrued interest commencing only on the Distribution Date, or under the
circumstances, specified in the related Prospectus Supplement, and other than
any class of Stripped Principal Certificates or REMIC Residual Certificates that
is not entitled to any distributions of interest) will be made on each
Distribution Date based on the Accrued Certificate Interest for such class and
such Distribution Date, subject to the sufficiency of the portion of the
Available Distribution Amount allocable to such class on such Distribution Date.
Prior to the time interest is distributable on any class of Accrual
Certificates, the amount of Accrued Certificate Interest otherwise distributable
on such class will be added to the Certificate Balance thereof on each
Distribution Date or otherwise deferred as described in the related Prospectus
Supplement. With respect to each class of Certificates (other than certain
classes of Stripped Interest Certificates and certain classes of REMIC Residual
Certificates), the "Accrued Certificate Interest" for each Distribution Date
will be equal to interest at the applicable Pass-Through Rate accrued for a
specified period (generally the most recently ended calendar month) on the
outstanding Certificate Balance of such class of Certificates immediately prior
to such Distribution Date. Unless otherwise provided in the related Prospectus
Supplement, the Accrued Certificate Interest for each Distribution Date on a
class of Stripped Interest Certificates will be similarly calculated except that
it will accrue on a Notional Amount that is either (i) based on the principal
balances of some or all of the Mortgage Assets in the related Trust Fund or (ii)
equal to the Certificate Balances of one or more other classes of Certificates
of the same series. Reference to a Notional Amount
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with respect to a class of Stripped Interest Certificates is solely for
convenience in making certain calculations and does not represent the right to
receive any distributions of principal. If so specified in the related
Prospectus Supplement, the amount of Accrued Certificate Interest that is
otherwise distributable on (or, in the case of Accrual Certificates, that may
otherwise be added to the Certificate Balance of) one or more classes of the
Certificates of a series may be reduced to the extent that any Prepayment
Interest Shortfalls, as described under "Yield and Maturity
Considerations--Certain Shortfalls in Collections of Interest", exceed the
amount of any sums that are applied to offset the amount of such shortfalls. The
particular manner in which such shortfalls will be allocated among some or all
of the classes of Certificates of that series will be specified in the related
Prospectus Supplement. The related Prospectus Supplement will also describe the
extent to which the amount of Accrued Certificate Interest that is otherwise
distributable on (or, in the case of Accrual Certificates, that may otherwise be
added to the Certificate Balance of) a class of Offered Certificates may be
reduced as a result of any other contingencies, including delinquencies, losses
and deferred interest on or in respect of the Mortgage Assets in the related
Trust Fund. Unless otherwise provided in the related Prospectus Supplement, any
reduction in the amount of Accrued Certificate Interest otherwise distributable
on a class of Certificates by reason of the allocation to such class of a
portion of any deferred interest on or in respect of the Mortgage Assets in the
related Trust Fund will result in a corresponding increase in the Certificate
Balance of such class. See "Risk Factors--Yield and Prepayment Considerations"
and "Yield and Maturity Considerations--Certain Shortfalls in Collections of
Interest".
DISTRIBUTIONS OF PRINCIPAL OF THE CERTIFICATES
Each class of Certificates of each series (other than certain classes of
Stripped Interest Certificates and certain classes of REMIC Residual
Certificates) will have a Certificate Balance, which, at any time, will equal
the then maximum amount that the holders of Certificates of such class will be
entitled to receive as principal out of the future cash flow on the Mortgage
Assets and other assets included in the related Trust Fund. The outstanding
Certificate Balance of a class of Certificates will be reduced by distributions
of principal made thereon from time to time and, if so provided in the related
Prospectus Supplement, further by any losses incurred in respect of the related
Mortgage Assets allocated thereto from time to time. In turn, the outstanding
Certificate Balance of a class of Certificates may be increased as a result of
any deferred interest on or in respect of the related Mortgage Assets being
allocated thereto from time to time, and will be increased, in the case of a
class of Accrual Certificates prior to the Distribution Date on which
distributions of interest thereon are required to commence, by the amount of any
Accrued Certificate Interest in respect thereof (reduced as described above).
Unless otherwise provided in the related Prospectus Supplement, the initial
aggregate Certificate Balance of all classes of a series of Certificates will
not be greater than the aggregate outstanding principal balance of the related
Mortgage Assets as of a specified date (the "Cut-Off Date"), after application
of scheduled payments due on or before such date, whether or not received. The
initial Certificate Balance of each class of a series of Certificates will be
specified in the related Prospectus Supplement. As and to the extent described
in the related Prospectus Supplement, distributions of principal with respect to
a series of Certificates will be made on each Distribution Date to the holders
of the class or classes of Certificates of such series entitled thereto until
the Certificate Balances of such Certificates have been reduced to zero.
Distributions of principal with respect to one or more classes of Certificates
may be made at a rate that is faster (and, in some cases, substantially faster)
than the rate at which payments or other collections of principal are received
on the Mortgage Assets in the related Trust Fund. Distributions of principal
with respect to one or more classes of Certificates may not commence until the
occurrence of certain events, such as the retirement of one or more other
classes of Certificates of the same series, or may be made at a rate that is
slower (and, in some cases, substantially slower) than the rate at which
payments or other collections of principal are received on the Mortgage Assets
in the related Trust Fund. Distributions of principal with respect to one or
more classes of Certificates (each such class, a "Controlled Amortization
Class") may be made, subject to available funds, based on a specified principal
payment schedule.
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Distributions of principal with respect to one or more classes of Certificates
(each such class, a "Companion Class") may be contingent on the specified
principal payment schedule for a Controlled Amortization Class of the same
series and the rate at which payments and other collections of principal on the
Mortgage Assets in the related Trust Fund are received. Unless otherwise
specified in the related Prospectus Supplement, distributions of principal of
any class of Offered Certificates will be made on a pro rata basis among all of
the Certificates of such class.
ALLOCATION OF LOSSES AND SHORTFALLS
The amount of any losses or shortfalls in collections on the Mortgage Assets
in any Trust Fund (to the extent not covered or offset by draws on any reserve
fund or under any instrument of Credit Support) will be allocated among the
respective classes of Certificates of the related series in the priority and
manner, and subject to the limitations, specified in the related Prospectus
Supplement. As described in the related Prospectus Supplement, such allocations
may be effected by a reduction in the entitlements to interest and/or the
Certificate Balances of one or more such classes of Certificates, or by
establishing a priority of payments among such classes of Certificates. See
"Description of Credit Support".
ADVANCES IN RESPECT OF DELINQUENCIES
If and to the extent provided in the related Prospectus Supplement, if a
Trust Fund includes Mortgage Loans, the Master Servicer, a Special Servicer, the
Trustee, the Fiscal Agent (if any), any provider of Credit Support and/or any
other specified person may be obligated to advance, or have the option of
advancing, on or before each Distribution Date, from its or their own funds or
from excess funds held in the related Certificate Account that are not part of
the Available Distribution Amount for the related series of Certificates for
such Distribution Date, an amount up to the aggregate of any payments of
principal (other than the principal portion of any balloon payments) and
interest that were due on or in respect of such Mortgage Loans during the
related Due Period and were delinquent on the related Determination Date.
Advances are intended to maintain a regular flow of scheduled interest and
principal payments to holders of the class or classes of Certificates entitled
thereto, rather than to guarantee or insure against losses. Accordingly, all
advances made out of a specific entity's own funds will be reimbursable out of
related recoveries on the Mortgage Loans (including amounts drawn under any fund
or instrument constituting Credit Support) respecting which such advances were
made (as to any Mortgage Loan, "Related Proceeds") and such other specific
sources as may be identified in the related Prospectus Supplement, including in
the case of a series that includes one or more classes of Subordinate
Certificates, collections on other Mortgage Assets in the related Trust Fund
that would otherwise be distributable to the holders of one or more classes of
such Subordinate Certificates. No advance will be required to be made by a
Master Servicer, Special Servicer, Fiscal Agent or Trustee if, in the judgment
of the Master Servicer, Special Servicer, Fiscal Agent or Trustee, as the case
may be, such advance would not be recoverable from Related Proceeds or another
specifically identified source (any such advance, a "Nonrecoverable Advance");
and, if previously made by a Master Servicer, Special Servicer, Fiscal Agent or
Trustee, a Nonrecoverable Advance will be reimbursable thereto from any amounts
in the related Certificate Account prior to any distributions being made to the
related series of Certificateholders.
If advances have been made by a Master Servicer, Special Servicer, Fiscal
Agent, Trustee or other entity from excess funds in a Certificate Account, such
Master Servicer, Special Servicer, Fiscal Agent, Trustee or other entity, as the
case may be, will be required to replace such funds in such Certificate Account
on any future Distribution Date to the extent that funds in such Certificate
Account on such Distribution Date are less than payments required to be made to
the related series of Certificateholders on such date. If so specified in the
related Prospectus Supplement, the obligation of a Master Servicer, Special
Servicer, Fiscal Agent, Trustee or other entity to make advances may be secured
by a cash
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advance reserve fund or a surety bond. If applicable, information regarding the
characteristics of, and the identity of any obligor on, any such surety bond,
will be set forth in the related Prospectus Supplement.
If and to the extent so provided in the related Prospectus Supplement, any
entity making advances will be entitled to receive interest on certain or all of
such advances for a specified period during which such advances are outstanding
at the rate specified in such Prospectus Supplement, and such entity will be
entitled to payment of such interest periodically from general collections on
the Mortgage Loans in the related Trust Fund prior to any payment to the related
series of Certificateholders or as otherwise provided in the related Pooling and
Servicing Agreement and described in such Prospectus Supplement.
The Prospectus Supplement for any series of Certificates evidencing an
interest in a Trust Fund that includes MBS will describe any comparable
advancing obligation of a party to the related Pooling and Servicing Agreement
or of a party to the related MBS Agreement.
REPORTS TO CERTIFICATEHOLDERS
On each Distribution Date, together with the distribution to the holders of
each class of the Offered Certificates of a series, a Master Servicer, Manager
or Trustee, as provided in the related Prospectus Supplement, will forward to
each such holder, a statement (a "Distribution Date Statement") that, unless
otherwise provided in the related Prospectus Supplement, will set forth, among
other things, in each case to the extent applicable:
(i) the amount of such distribution to holders of such class of Offered
Certificates that was applied to reduce the Certificate Balance thereof;
(ii) the amount of such distribution to holders of such class of Offered
Certificates that was applied to pay Accrued Certificate Interest;
(iii) the amount, if any, of such distribution to holders of such class
of Offered Certificates that was allocable to (A) Prepayment Premiums and
(B) payments on account of Equity Participations;
(iv) the amount, if any, by which such distribution is less than the
amounts to which holders of such class of Offered Certificates are entitled;
(v) if the related Trust Fund includes Mortgage Loans, the aggregate
amount of advances included in such distribution;
(vi) if the related Trust Fund includes Mortgage Loans, the amount of
servicing compensation received by the related Master Servicer (and, if
payable directly out of the related Trust Fund, by any Special Servicer and
any Sub-Servicer) and, if the related Trust Fund includes MBS, the amount of
administrative compensation received by the REMIC Administrator;
(vii) information regarding the aggregate principal balance of the
related Mortgage Assets on or about such Distribution Date;
(viii) if the related Trust Fund includes Mortgage Loans, information
regarding the number and aggregate principal balance of such Mortgage Loans
that are delinquent;
(ix) if the related Trust Fund includes Mortgage Loans, information
regarding the aggregate amount of losses incurred and principal prepayments
made with respect to such Mortgage Loans during the related Prepayment
Period (that is, the specified period, generally corresponding to the
related Due Period, during which prepayments and other unscheduled
collections on the Mortgage Loans in the related Trust Fund must be received
in order to be distributed on a particular Distribution Date);
(x) the Certificate Balance or Notional Amount, as the case may be, of
such class of Certificates at the close of business on such Distribution
Date, separately identifying any reduction in such
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Certificate Balance or Notional Amount due to the allocation of any losses
in respect of the related Mortgage Assets, any increase in such Certificate
Balance or Notional Amount due to the allocation of any negative
amortization in respect of the related Mortgage Assets and any increase in
the Certificate Balance of a class of Accrual Certificates, if any, in the
event that Accrued Certificate Interest has been added to such balance;
(xi) if such class of Offered Certificates has a variable Pass-Through
Rate or an adjustable Pass-Through Rate, the Pass-Through Rate applicable
thereto for such Distribution Date and, if determinable, for the next
succeeding Distribution Date;
(xii) the amount deposited in or withdrawn from any reserve fund on such
Distribution Date, and the amount remaining on deposit in such reserve fund
as of the close of business on such Distribution Date;
(xiii) if the related Trust Fund includes one or more instruments of
Credit Support, such as a letter of credit, an insurance policy and/or a
surety bond, the amount of coverage under each such instrument as of the
close of business on such Distribution Date; and
(xiv) the amount of Credit Support being afforded by any classes of
Subordinate Certificates.
In the case of information furnished pursuant to subclauses (i)-(iii) above,
the amounts will be expressed as a dollar amount per minimum denomination of the
relevant class of Offered Certificates or as a percentage. The Prospectus
Supplement for each series of Certificates may describe additional information
to be included in reports to the holders of the Offered Certificates of such
series.
Within a reasonable period of time after the end of each calendar year, the
Master Servicer, Manager or Trustee for a series of Certificates, as the case
may be, will be required to furnish to each person who at any time during the
calendar year was a holder of an Offered Certificate of such series a statement
containing the information set forth in subclauses (i)-(iii) above, aggregated
for such calendar year or the applicable portion thereof during which such
person was a Certificateholder. Such obligation will be deemed to have been
satisfied to the extent that substantially comparable information is provided
pursuant to any requirements of the Code as are from time to time in force. See,
however, "--Book-Entry Registration and Definitive Certificates" below.
If the Trust Fund for a series of Certificates includes MBS, the ability of
the related Master Servicer, Manager or Trustee, as the case may be, to include
in any Distribution Date Statement information regarding the mortgage loans
underlying such MBS will depend on the reports received with respect to such
MBS. In such cases, the related Prospectus Supplement will describe the
loan-specific information to be included in the Distribution Date Statements
that will be forwarded to the holders of the Offered Certificates of that series
in connection with distributions made to them.
TERMINATION; RETIREMENT OF CERTIFICATES
The obligations created by the Pooling and Servicing Agreement for each
series of Certificates (other than limited payment and notice obligations of the
applicable parties) will terminate upon the payment to Certificateholders of
that series of all amounts held in the Certificate Account or by the Master
Servicer and required to be paid to them pursuant to such Pooling and Servicing
Agreement following the earlier of (i) the final payment or other liquidation or
disposition (or any advance with respect thereto) of the last Mortgage Asset
subject thereto or of any property acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage Loan subject thereto and (ii) the purchase by the
Master Servicer, the Depositor or, if specified in the related Prospectus
Supplement, by the holder of the REMIC Residual Certificates (see "Certain
Federal Income Tax Consequences" below) from the Trust Fund for such series of
all remaining Mortgage Assets therein and property, if any, acquired in respect
of the Mortgage Loans therein. In addition to the foregoing, the Master Servicer
or the Depositor will have the option to purchase, in whole but not in part, the
Certificates specified in the related Prospectus Supplement in the manner set
forth in the related Prospectus Supplement. Upon the purchase of such
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Certificates or at any time thereafter, at the option of the Master Servicer or
the Depositor, the Mortgage Assets may be sold, thereby effecting a retirement
of the Certificates and the termination of the Trust Fund, or the Certificates
so purchased may be held or resold by the Master Servicer or the Depositor. In
no event, however, will the trust created continue beyond the expiration of 21
years from the death of the survivor of certain persons named in such Pooling
and Servicing Agreement. Written notice of termination of the Pooling and
Servicing Agreement will be given to each Certificateholder, and the final
distribution will be made only upon surrender and cancellation of the
Certificates at an office or agency appointed by the Trustee which will be
specified in the notice of termination. If the Certificateholders are permitted
to terminate the trust under the applicable Pooling and Servicing Agreement, a
penalty may be imposed upon the Certificateholders based upon the fee that would
be foregone by the Master Servicer and/or any Special Servicer because of such
termination.
Any such purchase of Mortgage Assets and property acquired in respect of
Mortgage Loans evidenced by a series of Certificates shall be made at the option
of the Master Servicer, the Depositor or, if applicable, the holder of the REMIC
Residual Certificates at the price specified in the related Prospectus
Supplement. The exercise of such right will effect early retirement of the
Certificates of that series, but the right of the Master Servicer, the Depositor
or, if applicable, such holder to so purchase is subject to the aggregate
principal balance of the Mortgage Assets for that series as of the Distribution
Date on which the purchase proceeds are to be distributed to Certificateholders
being less than the percentage specified in the related Prospectus Supplement of
the aggregate principal balance of the Mortgage Assets at the Cut-off Date for
that series. The Prospectus Supplement for each series of Certificates will set
forth the amounts that the holders of such Certificates will be entitled to
receive upon such early retirement. Such early termination may adversely affect
the yield to holders of certain classes of such Certificates. If a REMIC
election has been made, the termination of the related Trust Fund will be
effected in a manner consistent with applicable federal income tax regulations
and its status as a REMIC.
BOOK-ENTRY REGISTRATION AND DEFINITIVE CERTIFICATES
If so provided in the Prospectus Supplement for a series of Certificates,
one or more classes of the Offered Certificates of such series will be offered
in book-entry format through the facilities of DTC, and each such class will be
represented by one or more global Certificates registered in the name of DTC or
its nominee.
DTC is a limited-purpose trust company organized under the New York Banking
Law, a "banking corporation" within the meaning of the New York Banking Law, a
member of the Federal Reserve System, a "clearing corporation" within the
meaning of the New York Uniform Commercial Code, and a "clearing agency"
registered pursuant to the provisions of Section 17A of the Exchange Act. DTC
was created to hold securities for its participating organizations
("Participants") and facilitate the clearance and settlement of securities
transactions between Participants through electronic computerized book-entry
changes in their accounts, thereby eliminating the need for physical movement of
securities certificates. "Direct Participants", which maintain accounts with
DTC, include securities brokers and dealers, banks, trust companies and clearing
corporations and may include certain other organizations. DTC is owned by a
number of its Direct Participants and by the New York Stock Exchange, Inc., the
American Stock Exchange, Inc. and the National Association of Securities
Dealers, Inc. Access to the DTC system also is available to others such as
banks, brokers, dealers and trust companies that clear through or maintain a
custodial relationship with a Direct Participant, either directly or indirectly
("Indirect Participants"). The rules applicable to DTC and its Participants are
on file with the Commission.
Purchases of Book-Entry Certificates under the DTC system must be made by or
through Direct Participants, which will receive a credit for the Book-Entry
Certificates on DTC's records. The ownership interest of each actual purchaser
of a Book-Entry Certificate (a "Certificate Owner") is in turn to be recorded on
the Direct and Indirect Participants' records. Certificate Owners will not
receive written confirmation from DTC of their purchases, but Certificate Owners
are expected to receive written
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confirmations providing details of such transactions, as well as periodic
statements of their holdings, from the Direct or Indirect Participant through
which each Certificate Owner entered into the transaction. Transfers of
ownership interest in the Book-Entry Certificates are to be accomplished by
entries made on the books of Participants acting on behalf of Certificate
Owners. Certificate Owners will not receive certificates representing their
ownership interests in the Book-Entry Certificates, except in the event that use
of the book-entry system for the Book-Entry Certificates of any series is
discontinued as described below.
DTC has no knowledge of the actual Certificate Owners of the Book-Entry
Certificates; DTC's records reflect only the identity of the Direct Participants
to whose accounts such Certificates are credited, which may or may not be the
Certificate Owners. The Participants will remain responsible for keeping account
of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct
Participants, by Direct Participants to Indirect Participants, and by Direct
Participants and Indirect Participants to Certificate Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as
may be in effect from time to time.
Distributions on the Book-Entry Certificates will be made to DTC. DTC's
practice is to credit Direct Participants' accounts on the related Distribution
Date in accordance with their respective holdings shown on DTC's records unless
DTC has reason to believe that it will not receive payment on such date.
Disbursement of such distributions by Participants to Certificate Owners will be
governed by standing instructions and customary practices, as is the case with
securities held for the accounts of customers in bearer form or registered in
"street name", and will be the responsibility of each such Participant (and not
of DTC, the Depositor or any Trustee or Master Servicer), subject to any
statutory or regulatory requirements as may be in effect from time to time.
Under a book-entry system, Certificate Owners may receive payments after the
related Distribution Date.
Unless otherwise provided in the related Prospectus Supplement, the only
"Certificateholder" (as such term is used in the related Pooling and Servicing
Agreement) of Book-Entry Certificates will be the nominee of DTC, and the
Certificate Owners will not be recognized as Certificateholders under the
Pooling and Servicing Agreement. Certificate Owners will be permitted to
exercise the rights of Certificateholders under the related Pooling and
Servicing Agreement only indirectly through the Participants who in turn will
exercise their rights through DTC. The Depositor is informed that DTC will take
action permitted to be taken by a Certificateholder under a Pooling and
Servicing Agreement only at the direction of one or more Participants to whose
account with DTC interests in the Book-Entry Certificates are credited.
Because DTC can act only on behalf of Participants, who in turn act on
behalf of Indirect Participants and certain Certificate Owners, the ability of a
Certificate Owner to pledge its interest in Book-Entry Certificates to persons
or entities that do not participate in the DTC system, or otherwise take actions
in respect of its interest in Book-Entry Certificates, may be limited due to the
lack of a physical certificate evidencing such interest.
Unless otherwise specified in the related Prospectus Supplement,
Certificates initially issued in book-entry form will be issued as Definitive
Certificates to Certificate Owners or their nominees, rather than to DTC or its
nominee, only if (i) the Depositor advises the Trustee in writing that DTC is no
longer willing or able to discharge properly its responsibilities as depository
with respect to such Certificates and the Depositor is unable to locate a
qualified successor or (ii) the Depositor, at its option, elects to terminate
the book-entry system through DTC with respect to such Certificates. Upon the
occurrence of either of the events described in the preceding sentence, DTC will
be required to notify all Participants of the availability through DTC of
Definitive Certificates. Upon surrender by DTC of the certificate or
certificates representing a class of Book-Entry Certificates, together with
instructions for registration, the Trustee for the related series or other
designated party will be required to issue to the Certificate Owners identified
in such instructions the Definitive Certificates to which they are entitled, and
thereafter the holders of such Definitive Certificates will be recognized as
Certificateholders under the related Pooling and Servicing Agreement.
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THE POOLING AND SERVICING AGREEMENTS
GENERAL
The Certificates of each series will be issued pursuant to a Pooling and
Servicing Agreement. In general, the parties to a Pooling and Servicing
Agreement will include the Depositor, the Trustee, the Master Servicer and, in
some cases, a Special Servicer appointed as of the date of the Pooling and
Servicing Agreement. However, a Pooling and Servicing Agreement that relates to
a Trust Fund that includes MBS may include a Manager as a party, but may not
include a Master Servicer or other servicer as a party. All parties to each
Pooling and Servicing Agreement under which Certificates of a series are issued
will be identified in the related Prospectus Supplement. If so specified in the
related Prospectus Supplement, an affiliate of the Depositor, or the Mortgage
Asset Seller or an affiliate thereof, may perform the functions of Master
Servicer, Special Servicer or Manager. Any party to a Pooling and Servicing
Agreement or any affiliate thereof may own Certificates issued thereunder.
A form of a pooling and servicing agreement has been filed as an exhibit to
the Registration Statement of which this Prospectus is a part. However, the
provisions of each Pooling and Servicing Agreement will vary depending upon the
nature of the Certificates to be issued thereunder and the nature of the related
Trust Fund. The following summaries describe certain provisions that may appear
in a Pooling and Servicing Agreement under which Certificates that evidence
interests in Mortgage Loans will be issued. The Prospectus Supplement for a
series of Certificates will describe any provision of the related Pooling and
Servicing Agreement that materially differs from the description thereof
contained in this Prospectus and, if the related Trust Fund includes MBS, will
summarize all of the material provisions of the related Pooling and Servicing
Agreement. The summaries herein do not purport to be complete and are subject
to, and are qualified in their entirety by reference to, all of the provisions
of the Pooling and Servicing Agreement for each series of Certificates and the
description of such provisions in the related Prospectus Supplement. The
Depositor will provide a copy of the Pooling and Servicing Agreement (without
exhibits) that relates to any series of Certificates without charge upon written
request of a holder of a Certificate of such series addressed to it at its
principal executive offices specified herein under "The Depositor".
ASSIGNMENT OF MORTGAGE LOANS; REPURCHASES
At the time of issuance of any series of Certificates, the Depositor will
assign (or cause to be assigned) to the designated Trustee the Mortgage Loans to
be included in the related Trust Fund, together with, unless otherwise specified
in the related Prospectus Supplement, all principal and interest to be received
on or with respect to such Mortgage Loans after the Cut-off Date, other than
principal and interest due on or before the Cut-off Date. The Trustee will,
concurrently with such assignment, deliver the Certificates to or at the
direction of the Depositor in exchange for the Mortgage Loans and the other
assets to be included in the Trust Fund for such series. Each Mortgage Loan will
be identified in a schedule appearing as an exhibit to the related Pooling and
Servicing Agreement. Such schedule generally will include detailed information
that pertains to each Mortgage Loan included in the related Trust Fund, which
information will typically include the address of the related Mortgaged Property
and type of such property; the Mortgage Rate and, if applicable, the applicable
index, gross margin, adjustment date and any rate cap information; the original
and remaining term to maturity; the original amortization term; and the original
and outstanding principal balance.
In addition, unless otherwise specified in the related Prospectus
Supplement, the Depositor will, as to each Mortgage Loan to be included in a
Trust Fund, deliver, or cause to be delivered, to the related Trustee (or to a
custodian appointed by the Trustee as described below) the Mortgage Note
endorsed, without recourse, either in blank or to the order of such Trustee (or
its nominee), the Mortgage with evidence of recording indicated thereon (except
for any Mortgage not returned from the public recording office), an assignment
of the Mortgage in blank or to the Trustee (or its nominee) in recordable form,
together with any intervening assignments of the Mortgage with evidence of
recording thereon (except
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for any such assignment not returned from the public recording office), and, if
applicable, any riders or modifications to such Mortgage Note and Mortgage,
together with certain other documents at such times as set forth in the related
Pooling and Servicing Agreement. Such assignments may be blanket assignments
covering Mortgages on Mortgaged Properties located in the same county, if
permitted by law. Notwithstanding the foregoing, a Trust Fund may include
Mortgage Loans where the original Mortgage Note is not delivered to the Trustee
if the Depositor delivers, or causes to be delivered, to the related Trustee (or
such custodian) a copy or a duplicate original of the Mortgage Note, together
with an affidavit certifying that the original thereof has been lost or
destroyed. In addition, if the Depositor cannot deliver, with respect to any
Mortgage Loan, the Mortgage or any intervening assignment with evidence of
recording thereon concurrently with the execution and delivery of the related
Pooling and Servicing Agreement because of a delay caused by the public
recording office, the Depositor will deliver, or cause to be delivered, to the
related Trustee (or such custodian) a true and correct photocopy of such
Mortgage or assignment as submitted for recording. The Depositor will deliver,
or cause to be delivered, to the related Trustee (or such custodian) such
Mortgage or assignment with evidence of recording indicated thereon after
receipt thereof from the public recording office. If the Depositor cannot
deliver, with respect to any Mortgage Loan, the Mortgage or any intervening
assignment with evidence of recording thereon concurrently with the execution
and delivery of the related Pooling and Servicing Agreement because such
Mortgage or assignment has been lost, the Depositor will deliver, or cause to be
delivered, to the related Trustee (or such custodian) a true and correct
photocopy of such Mortgage or assignment with evidence of recording thereon.
Unless otherwise specified in the related Prospectus Supplement, assignments of
Mortgage to the Trustee (or its nominee) will be recorded in the appropriate
public recording office, except in states where, in the opinion of counsel
acceptable to the Trustee, such recording is not required to protect the
Trustee's interests in the Mortgage Loan against the claim of any subsequent
transferee or any successor to or creditor of the Depositor or the originator of
such Mortgage Loan.
The Trustee (or a custodian appointed by the Trustee) for a series of
Certificates will be required to review the Mortgage Loan documents delivered to
it within a specified period of days after receipt thereof, and the Trustee (or
such custodian) will hold such documents in trust for the benefit of the
Certificateholders of such series. Unless otherwise specified in the related
Prospectus Supplement, if any such document is found to be missing or defective,
and such omission or defect, as the case may be, materially and adversely
affects the interests of the Certificateholders of the related series, the
Trustee (or such custodian) will be required to notify the Master Servicer and
the Depositor, and one of such persons will be required to notify the relevant
Mortgage Asset Seller. In that case, and if the Mortgage Asset Seller cannot
deliver the document or cure the defect within a specified number of days after
receipt of such notice, then, except as otherwise specified below or in the
related Prospectus Supplement, the Mortgage Asset Seller will be obligated to
repurchase the related Mortgage Loan from the Trustee at a price generally equal
to the unpaid principal balance thereof, together with accrued but unpaid
interest through a date on or about the date of purchase, or at such other price
as will be specified in the related Prospectus Supplement (in any event, the
"Purchase Price"). If so provided in the Prospectus Supplement for a series of
Certificates, a Mortgage Asset Seller, in lieu of repurchasing a Mortgage Loan
as to which there is missing or defective loan documentation, will have the
option, exercisable upon certain conditions and/or within a specified period
after initial issuance of such series of Certificates, to replace such Mortgage
Loan with one or more other mortgage loans, in accordance with standards that
will be described in the Prospectus Supplement. Unless otherwise specified in
the related Prospectus Supplement, this repurchase or substitution obligation
will constitute the sole remedy to holders of the Certificates of any series or
to the related Trustee on their behalf for missing or defective Mortgage Asset
documentation and neither the Depositor nor, unless it is the Mortgage Asset
Seller, the Master Servicer will be obligated to purchase or replace a Mortgage
Loan if a Mortgage Asset Seller defaults on its obligation to do so.
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The Trustee will be authorized at any time to appoint one or more custodians
pursuant to a custodial agreement to hold title to the Mortgage Loans in any
Trust Fund, and to maintain possession of and, if applicable, to review, the
documents relating to such Mortgage Loans, in any case as the agent of the
Trustee. The identity of any such custodian to be appointed on the date of
initial issuance of the Certificates will be set forth in the related Prospectus
Supplement. Any such custodian may be an affiliate of the Depositor or the
Master Servicer.
REPRESENTATIONS AND WARRANTIES; REPURCHASES
Unless otherwise provided in the Prospectus Supplement for a series of
Certificates, the Depositor will, with respect to each Mortgage Loan in the
related Trust Fund, make or assign, or cause to be made or assigned, certain
representations and warranties (the person making such representations and
warranties, the "Warranting Party") covering, by way of example: (i) the
accuracy of the information set forth for such Mortgage Loan on the schedule of
Mortgage Loans appearing as an exhibit to the related Pooling and Servicing
Agreement; (ii) the enforceability of the related Mortgage Note and Mortgage and
the existence of title insurance insuring the lien priority of the related
Mortgage; (iii) the Warranting Party's title to the Mortgage Loan and the
authority of the Warranting Party to sell the Mortgage Loan; and (iv) the
payment status of the Mortgage Loan. It is expected that in most cases the
Warranting Party will be the Mortgage Asset Seller; however, the Warranting
Party may also be an affiliate of the Mortgage Asset Seller, the Depositor or an
affiliate of the Depositor, the Master Servicer, a Special Servicer or another
person acceptable to the Depositor. The Warranting Party, if other than the
Mortgage Asset Seller, will be identified in the related Prospectus Supplement.
Unless otherwise provided in the related Prospectus Supplement, the Master
Servicer and/or Trustee will be required to notify promptly any Warranting Party
of any breach of any representation or warranty made by it in respect of a
Mortgage Loan that materially and adversely affects the interests of the
Certificateholders of the related series. If such Warranting Party cannot cure
such breach within a specified period following the date on which it was
notified of such breach, then, unless otherwise provided in the related
Prospectus Supplement, it will be obligated to repurchase such Mortgage Loan
from the Trustee at the applicable Purchase Price. If so provided in the
Prospectus Supplement for a series of Certificates, a Warranting Party, in lieu
of repurchasing a Mortgage Loan as to which a breach has occurred, will have the
option, exercisable upon certain conditions and/or within a specified period
after initial issuance of such series of Certificates, to replace such Mortgage
Loan with one or more other mortgage loans, in accordance with standards that
will be described in the Prospectus Supplement. Unless otherwise specified in
the related Prospectus Supplement, this repurchase or substitution obligation
will constitute the sole remedy available to holders of the Certificates of any
series or to the related Trustee on their behalf for a breach of representation
and warranty by a Warranting Party and neither the Depositor nor the Master
Servicer, in either case unless it is the Warranting Party, will be obligated to
purchase or replace a Mortgage Loan if a Warranting Party defaults on its
obligation to do so.
Representations and warranties may be made in respect of a Mortgage Loan as
of a date prior to the date upon which the related series of Certificates is
issued, and thus may not address events that may occur following the date as of
which they were made. The date as of which the representations and warranties
regarding the Mortgage Loans in any Trust Fund were made will be specified in
the related Prospectus Supplement.
COLLECTION AND OTHER SERVICING PROCEDURES
Unless otherwise specified in the related Prospectus Supplement, the Master
Servicer for any Mortgage Pool, directly or through Sub-Servicers, will be
obligated under the related Pooling and Servicing Agreement to service and
administer the Mortgage Loans in such Mortgage Pool for the benefit of the
related Certificateholders, in accordance with applicable law and with the terms
of such Pooling and Servicing Agreement, such Mortgage Loans and any instrument
of Credit Support included
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in the related Trust Fund. Subject to the foregoing, the Master Servicer will
have full power and authority to do any and all things in connection with such
servicing and administration that it may deem necessary and desirable.
As part of its servicing duties, a Master Servicer will be required to make
reasonable efforts to collect all payments called for under the terms and
provisions of the Mortgage Loans that it services and will be obligated to
follow such collection procedures as it would follow with respect to mortgage
loans that are comparable to such Mortgage Loans and held for its own account,
provided (i) such procedures are consistent with the terms of the related
Pooling and Servicing Agreement, and (ii) do not impair recovery under any
instrument of Credit Support included in the related Trust Fund. Consistent with
the foregoing, the Master Servicer will be permitted, in its discretion, unless
otherwise specified in the related Prospectus Supplement, to waive any
Prepayment Premium, late payment charge or other charge in connection with any
Mortgage Loan.
Under a Pooling and Servicing Agreement, a Master Servicer or Special
Servicer will be granted certain discretion to extend relief to Mortgagors whose
payments become delinquent. Unless otherwise specified in the related Prospectus
Supplement, if a material default occurs or a payment default is reasonably
foreseeable with respect to a Mortgage Loan, the Master Servicer or Special
Servicer will be permitted, subject to any specific limitations set forth in the
related Pooling and Servicing Agreement and described in the related Prospectus
Supplement, to modify, waive or amend any term of such Mortgage Loan, including
deferring payments, extending the stated maturity date or otherwise adjusting
the payment schedule, provided that such modification, waiver or amendment (i)
is reasonably likely to produce a greater recovery with respect to such Mortgage
Loan on a present value basis than would liquidation and (ii) will not adversely
affect the coverage under any applicable instrument of Credit Support.
A mortgagor's failure to make required Mortgage Loan payments may mean that
operating income is insufficient to service the mortgage debt, or may reflect
the diversion of that income from the servicing of the mortgage debt. In
addition, a mortgagor that is unable to make Mortgage Loan payments may also be
unable to make timely payment of taxes and otherwise to maintain and insure the
related Mortgaged Property. In general, the related Master Servicer will be
required to monitor any Mortgage Loan that is in default, evaluate whether the
causes of the default can be corrected over a reasonable period without
significant impairment of the value of the related Mortgaged Property, initiate
corrective action in cooperation with the Mortgagor if cure is likely, inspect
the related Mortgaged Property and take such other actions as it deems necessary
and appropriate. A significant period of time may elapse before the Master
Servicer is able to assess the success of any such corrective action or the need
for additional initiatives. The time within which the Master Servicer can make
the initial determination of appropriate action, evaluate the success of
corrective action, develop additional initiatives, institute foreclosure
proceedings and actually foreclose (or accept a deed to a Mortgaged Property in
lieu of foreclosure) on behalf of the Certificateholders of the related series
may vary considerably depending on the particular Mortgage Loan, the Mortgaged
Property, the mortgagor, the presence of an acceptable party to assume the
Mortgage Loan and the laws of the jurisdiction in which the Mortgaged Property
is located. If a mortgagor files a bankruptcy petition, the Master Servicer may
not be permitted to accelerate the maturity of the Mortgage Loan or to foreclose
on the related Mortgaged Property for a considerable period of time. See
"Certain Legal Aspects of Mortgage Loans--Bankruptcy Laws."
Mortgagors may, from time to time, request partial releases of the Mortgaged
Properties, easements, consents to alteration or demolition and other similar
matters. The Master Servicer may approve such a request if it has determined,
exercising its business judgment in the same manner as it would if it were the
owner of the related Mortgage Loan, that such approval will not adversely affect
the security for, or the timely and full collectability of, the related Mortgage
Loan; provided, however, that the Master Servicer will not approve such a
request if a REMIC election has been made and such request would not (in the
opinion of independent counsel) result in the imposition of a tax on the Trust
Fund or cause the
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Trust Fund (or any designated portion thereof) to fail to qualify as a REMIC
under the Code at any time that any Certificate is outstanding. Any fee
collected by the Master Servicer for processing such request will be retained by
the Master Servicer as additional servicing compensation.
In the case of Mortgage Loans secured by junior liens on the related
Mortgaged Properties, unless otherwise provided in the related Prospectus
Supplement, the Master Servicer will be required to file (or cause to be filed)
of record a request for notice of any action by a superior lienholder under the
Senior Lien for the protection of the related Trustee's interest, where
permitted by local law and whenever applicable state law does not require that a
junior lienholder be named as a party defendant in foreclosure proceedings in
order to foreclose such junior lienholder's equity of redemption. Unless
otherwise specified in the related Prospectus Supplement, the Master Servicer
also will be required to notify any superior lienholder in writing of the
existence of the Mortgage Loan and request notification of any action (as
described below) to be taken against the mortgagor or the Mortgaged Property by
the superior lienholder. If the Master Servicer is notified that any superior
lienholder has accelerated or intends to accelerate the obligations secured by
the related Senior Lien, or has declared or intends to declare a default under
the mortgage or the promissory note secured thereby, or has filed or intends to
file an election to have the related Mortgaged Property sold or foreclosed,
then, unless otherwise specified in the related Prospectus Supplement, the
Master Servicer will be required to take, on behalf of the related Trust Fund,
whatever actions are necessary to protect the interests of the related
Certificateholders, and/ or to preserve the security of the related Mortgage
Loan, subject to the application of the REMIC Provisions. Unless otherwise
specified in the related Prospectus Supplement, the Master Servicer will be
required to advance the necessary funds to cure the default or reinstate the
Senior Lien, if such advance is in the best interests of the related
Certificateholders and the Master Servicer determines such advances are
recoverable out of payments on or proceeds of the related Mortgage Loan.
The Master Servicer for any Trust Fund, directly or through Sub-Servicers,
will also be required to perform as to the Mortgage Loans in such Trust Fund
various other customary functions of a servicer of comparable loans, including
maintaining escrow or impound accounts, if required under the related Pooling
and Servicing Agreement, for payment of taxes, insurance premiums, ground rents
and similar items, or otherwise monitoring the timely payment of those items;
attempting to collect delinquent payments; supervising foreclosures; negotiating
modifications; conducting property inspections on a periodic or other basis;
managing (or overseeing the management of) Mortgaged Properties acquired on
behalf of such Trust Fund through foreclosure, deed-in-lieu of foreclosure or
otherwise (each, an "REO Property"); and maintaining servicing records relating
to such Mortgage Loans. Unless otherwise specified in the related Prospectus
Supplement, the Master Servicer will be responsible for filing and settling
claims in respect of particular Mortgage Loans under any applicable instrument
of Credit Support. See "Description of Credit Support".
SUB-SERVICERS
A Master Servicer may delegate its servicing obligations in respect of the
Mortgage Loans serviced thereby to one or more third-party servicers (each, a
"Sub-Servicer"); provided that, unless otherwise specified in the related
Prospectus Supplement, such Master Servicer will remain obligated under the
related Pooling and Servicing Agreement. A Sub-Servicer for any series of
Certificates may be an affiliate of the Depositor or Master Servicer. Unless
otherwise provided in the related Prospectus Supplement, each sub-servicing
agreement between a Master Servicer and a Sub-Servicer (a "Sub-Servicing
Agreement") will provide for servicing of the applicable Mortgage Loans
consistent with the related Pooling and Servicing Agreement. A Master Servicer
will be required to monitor the performance of Sub-Servicers retained by it and
will have the right to remove a Sub-Servicer retained by it at any time it
considers such removal to be in the best interests of Certificateholders.
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Unless otherwise provided in the related Prospectus Supplement, a Master
Servicer will be solely liable for all fees owed by it to any Sub-Servicer,
irrespective of whether the Master Servicer's compensation pursuant to the
related Pooling and Servicing Agreement is sufficient to pay such fees. Each
Sub-Servicer will be reimbursed by the Master Servicer that retained it for
certain expenditures which it makes, generally to the same extent the Master
Servicer would be reimbursed under a Pooling and Servicing Agreement. See
"--Certificate Account" and "--Servicing Compensation and Payment of Expenses".
SPECIAL SERVICERS
To the extent so specified in the related Prospectus Supplement, one or more
Special Servicers may be a party to the related Pooling and Servicing Agreement
or may be appointed by the Master Servicer or another specified party. A Special
Servicer for any series of Certificates may be an affiliate of the Depositor or
the Master Servicer and may hold, or be affiliated with the holder of,
Subordinate Certificates of such series. A Special Servicer may be entitled to
any of the rights, and subject to any of the obligations, described herein in
respect of a Master Servicer. In general, a Special Servicer's duties will
relate to defaulted Mortgage Loans, including instituting foreclosures and
negotiating work-outs. The related Prospectus Supplement will describe the
rights, obligations and compensation of any Special Servicer for a particular
series of Certificates. The Master Servicer will be liable for the performance
of a Special Servicer only if, and to the extent, set forth in the related
Prospectus Supplement. In certain cases the Master Servicer may be appointed the
Special Servicer.
CERTIFICATE ACCOUNT
GENERAL. The Master Servicer, the Trustee and/or a Special Servicer will,
as to each Trust Fund that includes Mortgage Loans, establish and maintain or
cause to be established and maintained the corresponding Certificate Account,
which will be established so as to comply with the standards of each Rating
Agency that has rated any one or more classes of Certificates of the related
series. A Certificate Account may be maintained as an interest-bearing or a
non-interest-bearing account and the funds held therein may be invested pending
each succeeding Distribution Date in United States government securities and
other obligations that are acceptable to each Rating Agency that has rated any
one or more classes of Certificates of the related series ("Permitted
Investments"). Unless otherwise provided in the related Prospectus Supplement,
any interest or other income earned on funds in a Certificate Account will be
paid to the related Master Servicer, Trustee or Special Servicer (if any) as
additional compensation. A Certificate Account may be maintained with the
related Master Servicer, Special Servicer or Mortgage Asset Seller or with a
depository institution that is an affiliate of any of the foregoing or of the
Depositor, provided that it complies with applicable Rating Agency standards. If
permitted by the applicable Rating Agency or Agencies, a Certificate Account may
contain funds relating to more than one series of mortgage pass-through
certificates and may contain other funds representing payments on mortgage loans
owned by the related Master Servicer or Special Servicer (if any) or serviced by
either on behalf of others.
DEPOSITS. Unless otherwise provided in the related Pooling and Servicing
Agreement and described in the related Prospectus Supplement, the following
payments and collections received or made by the Master Servicer, the Trustee or
any Special Servicer subsequent to the Cut-off Date (other than payments due on
or before the Cut-off Date) are to be deposited in the Certificate Account for
each Trust Fund that includes Mortgage Loans, within a certain period following
receipt (in the case of collections on or in respect of the Mortgage Loans) or
otherwise as provided in the related Pooling and Servicing Agreement:
(i) all payments on account of principal, including principal
prepayments, on the Mortgage Loans;
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(ii) all payments on account of interest on the Mortgage Loans,
including any default interest collected, in each case net of any portion
thereof retained by the Master Servicer or any Special Servicer as its
servicing compensation or as compensation to the Trustee;
(iii) all proceeds received under any hazard, title or other insurance
policy that provides coverage with respect to a Mortgaged Property or the
related Mortgage Loan (other than proceeds applied to the restoration of the
property or released to the related borrower) (collectively, "Insurance
Proceeds"), all proceeds received in connection with the condemnation or
other governmental taking of all or any portion of a Mortgaged Property
(other than proceeds applied to the restoration of the property or released
to the related borrower) (collectively, "Condemnation Proceeds"), and all
other amounts received and retained in connection with the liquidation of
defaulted Mortgage Loans or property acquired in respect thereof, by
foreclosure or otherwise (such amounts, together with those amounts listed
in clause (vii) below, "Liquidation Proceeds"), together with the net
operating income (less reasonable reserves for future expenses) derived from
the operation of any Mortgaged Properties acquired by the Trust Fund through
foreclosure or otherwise;
(iv) any amounts paid under any instrument or drawn from any fund that
constitutes Credit Support for the related series of Certificates;
(v) any advances made with respect to delinquent scheduled payments of
principal and interest on the Mortgage Loans;
(vi) any amounts paid under any Cash Flow Agreement;
(vii) all proceeds of the purchase of any Mortgage Loan, or property
acquired in respect thereof, by the Depositor, any Mortgage Asset Seller or
any other specified person as described under "--Assignment of Mortgage
Loans; Repurchases" and "--Representations and Warranties; Repurchases", all
proceeds of the purchase of any defaulted Mortgage Loan as described under
"--Realization Upon Defaulted Mortgage Loans", and all proceeds of any
Mortgage Asset purchased as described under "Description of the
Certificates--Termination; Retirement of Certificates";
(viii) to the extent that any such item does not constitute additional
servicing compensation to the Master Servicer or a Special Servicer and is
not otherwise retained by the Depositor or another specified person, any
payments on account of modification or assumption fees, late payment
charges, Prepayment Premiums or Equity Participations with respect to the
Mortgage Loans;
(ix) all payments required to be deposited in the Certificate Account
with respect to any deductible clause in any blanket insurance policy
described under "--Hazard Insurance Policies";
(x) any amount required to be deposited by the Master Servicer or the
Trustee in connection with losses realized on investments for the benefit of
the Master Servicer or the Trustee, as the case may be, of funds held in the
Certificate Account; and
(xi) any other amounts required to be deposited in the Certificate
Account as provided in the related Pooling and Servicing Agreement and
described in the related Prospectus Supplement.
WITHDRAWALS. Unless otherwise provided in the related Pooling and Servicing
Agreement and described in the related Prospectus Supplement, a Master Servicer,
Trustee or Special Servicer may make withdrawals from the Certificate Account
for each Trust Fund that includes Mortgage Loans for any of the following
purposes:
(i) to make distributions to the Certificateholders on each
Distribution Date;
(ii) to pay the Master Servicer or a Special Servicer any servicing fees
not previously retained thereby, such payment to be made out of payments and
other collections of interest on the particular Mortgage Loans as to which
such fees were earned;
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(iii) to reimburse the Master Servicer, a Special Servicer or any other
specified person for unreimbursed advances of delinquent scheduled payments
of principal and interest made by it, and certain unreimbursed servicing
expenses incurred by it, with respect to Mortgage Loans in the Trust Fund
and properties acquired in respect thereof, such reimbursement to be made
out of amounts that represent late payments collected on the particular
Mortgage Loans, Liquidation Proceeds, Condemnation Proceeds and Insurance
Proceeds collected on the particular Mortgage Loans and properties, and net
income collected on the particular properties, with respect to which such
advances were made or such expenses were incurred or out of amounts drawn
under any form of Credit Support with respect to such Mortgage Loans and
properties, or if in the judgment of the Master Servicer, the Special
Servicer or such other person, as applicable, such advances and/or expenses
will not be recoverable from such amounts, such reimbursement to be made
from amounts collected on other Mortgage Loans in the same Trust Fund or, if
and to the extent so provided by the related Pooling and Servicing Agreement
and described in the related Prospectus Supplement, only from that portion
of amounts collected on such other Mortgage Loans that is otherwise
distributable on one or more classes of Subordinate Certificates of the
related series;
(iv) if and to the extent described in the related Prospectus
Supplement, to pay the Master Servicer, a Special Servicer or any other
specified person interest accrued on the advances and servicing expenses
described in clause (iii) above incurred by it while such remain outstanding
and unreimbursed;
(v) to pay for costs and expenses incurred by the Trust Fund for
environmental site assessments performed with respect to Mortgaged
Properties that constitute security for defaulted Mortgage Loans, and for
any containment, clean-up or remediation of hazardous wastes and materials
present on such Mortgaged Properties, as described under "--Realization Upon
Defaulted Mortgage Loans";
(vi) to reimburse the Master Servicer, the Depositor, the Trustee, or
any of their respective directors, officers, employees and agents, as the
case may be, for certain expenses, costs and liabilities incurred thereby,
as and to the extent described under "--Certain Matters Regarding the Master
Servicer and the Depositor" and "--Certain Matters Regarding the Trustee";
(vii) if and to the extent described in the related Prospectus
Supplement, to pay the fees of the Trustee and any provider of Credit
Support;
(viii) if and to the extent described in the related Prospectus
Supplement, to reimburse prior draws on any form of Credit Support;
(ix) to pay the Master Servicer, a Special Servicer or the Trustee, as
appropriate, interest and investment income earned in respect of amounts
held in the Certificate Account as additional compensation;
(x) to pay any servicing expenses not otherwise required to be advanced
by the Master Servicer, a Special Servicer or any other specified person;
(xi) if one or more elections have been made to treat the Trust Fund or
designated portions thereof as a REMIC, to pay any federal, state or local
taxes imposed on the Trust Fund or its assets or transactions, as and to the
extent described under "Certain Federal Income Tax
Consequences--REMICs--Prohibited Transactions Tax and Other Taxes";
(xii) to pay for the cost of various opinions of counsel obtained
pursuant to the related Pooling and Servicing Agreement for the benefit of
Certificateholders;
(xiii) to make any other withdrawals permitted by the related Pooling and
Servicing Agreement and described in the related Prospectus Supplement; and
(xiv) to clear and terminate the Certificate Account upon the termination
of the Trust Fund.
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REALIZATION UPON DEFAULTED MORTGAGE LOANS
If a default on a Mortgage Loan has occurred or, in the Master Servicer's
judgment, a payment default is imminent, the Master Servicer, on behalf of the
Trustee, may at any time institute foreclosure proceedings, exercise any power
of sale contained in the related Mortgage, obtain a deed in lieu of foreclosure,
or otherwise acquire title to the related Mortgaged Property, by operation of
law or otherwise. Unless otherwise specified in the related Prospectus
Supplement, the Master Servicer may not, however, acquire title to any Mortgaged
Property, have a receiver of rents appointed with respect to any Mortgaged
Property or take any other action with respect to any Mortgaged Property that
would cause the Trustee, for the benefit of the related series of
Certificateholders, or any other specified person to be considered to hold title
to, to be a "mortgagee-in-possession" of, or to be an "owner" or an "operator"
of such Mortgaged Property within the meaning of certain federal environmental
laws, unless the Master Servicer has previously received a report prepared by a
person who regularly conducts environmental audits (which report will be an
expense of the Trust Fund) and either:
(i) such report indicates that (a) the Mortgaged Property is in
compliance with applicable environmental laws and regulations and (b) there
are no circumstances or conditions present at the Mortgaged Property that
have resulted in any contamination for which investigation, testing,
monitoring, containment, clean-up or remediation could be required under any
applicable environmental laws and regulations; or
(ii) the Master Servicer, based solely (as to environmental matters and
related costs) on the information set forth in such report, determines that
taking such actions as are necessary to bring the Mortgaged Property into
compliance with applicable environmental laws and regulations and/or taking
the actions contemplated by clause (i)(b) above, is reasonably likely to
produce a greater recovery, taking into account the time value of money,
than not taking such actions. See "Certain Legal Aspects of Mortgage
Loans--Environmental Considerations".
A Pooling and Servicing Agreement may grant to the Master Servicer, a
Special Servicer, a provider of Credit Support and/or the holder or holders of
certain classes of the related series of Certificates a right of first refusal
to purchase from the Trust Fund, at a predetermined purchase price (which, if
insufficient to fully fund the entitlements of Certificateholders to principal
and interest thereon, will be specified in the related Prospectus Supplement),
any Mortgage Loan as to which a specified number of scheduled payments are
delinquent. In addition, unless otherwise specified in the related Prospectus
Supplement, the Master Servicer may offer to sell any defaulted Mortgage Loan if
and when the Master Servicer determines, consistent with its normal servicing
procedures, that such a sale would produce a greater recovery, taking into
account the time value of money, than would liquidation of the related Mortgaged
Property. In the absence of any such sale, the Master Servicer will generally be
required to proceed against the related Mortgaged Property, subject to the
discussion below.
Unless otherwise provided in the related Prospectus Supplement, if title to
any Mortgaged Property is acquired by a Trust Fund as to which a REMIC election
has been made, the Master Servicer, on behalf of the Trust Fund, will be
required to sell the Mortgaged Property within three full years after the
taxable year of acquisition, unless (i) the Internal Revenue Service (the "IRS")
grants an extension of time to sell such property or (ii) the Trustee receives
an opinion of independent counsel to the effect that the holding of the property
by the Trust Fund for longer than such period will not result in the imposition
of a tax on the Trust Fund or cause the Trust Fund (or any designated portion
thereof) to fail to qualify as a REMIC under the Code at any time that any
Certificate is outstanding. Subject to the foregoing and any other tax-related
limitations, the Master Servicer will generally be required to attempt to sell
any Mortgaged Property so acquired on the same terms and conditions it would if
it were the owner. Unless otherwise provided in the related Prospectus
Supplement, if title to any Mortgaged Property is acquired by a Trust Fund as to
which a REMIC election has been made, the Master Servicer will also be required
to ensure that the Mortgaged Property is administered so that it constitutes
"foreclosure property" within the
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meaning of Code Section 860G(a)(8) at all times, that the sale of such property
does not result in the receipt by the Trust Fund of any income from
non-permitted assets as described in Code Section 860F(a)(2)(B), and that the
Trust Fund does not derive any "net income from foreclosure property" within the
meaning of Code Section 860G(c)(2), with respect to such property. If the Trust
Fund acquires title to any Mortgaged Property, the Master Servicer, on behalf of
the Trust Fund, may retain an independent contractor to manage and operate such
property. The retention of an independent contractor, however, will not relieve
the Master Servicer of its obligation to manage such Mortgaged Property as
required under the related Pooling and Servicing Agreement.
If Liquidation Proceeds collected with respect to a defaulted Mortgage Loan
are less than the outstanding principal balance of the defaulted Mortgage Loan
plus interest accrued thereon plus the aggregate amount of reimbursable expenses
incurred by the Master Servicer in connection with such Mortgage Loan, then, to
the extent that such shortfall is not covered by any instrument or fund
constituting Credit Support, the Trust Fund will realize a loss in the amount of
such shortfall. The Master Servicer will be entitled to reimbursement out of the
Liquidation Proceeds recovered on any defaulted Mortgage Loan, prior to the
distribution of such Liquidation Proceeds to Certificateholders, amounts that
represent unpaid servicing compensation in respect of the Mortgage Loan,
unreimbursed servicing expenses incurred with respect to the Mortgage Loan and
any unreimbursed advances of delinquent payments made with respect to the
Mortgage Loan. In addition, if and to the extent set forth in the related
Prospectus Supplement, amounts otherwise distributable on the Certificates may
be further reduced by interest payable to the Master Servicer on such servicing
expenses and advances.
If any Mortgaged Property suffers damage such that the proceeds, if any, of
the related hazard insurance policy are insufficient to restore fully the
damaged property, the Master Servicer will not be required to expend its own
funds to effect such restoration unless (and to the extent not otherwise
provided in the related Prospectus Supplement) it determines (i) that such
restoration will increase the proceeds to Certificateholders on liquidation of
the Mortgage Loan after reimbursement of the Master Servicer for its expenses
and (ii) that such expenses will be recoverable by it from related Insurance
Proceeds, Condemnation Proceeds, Liquidation Proceeds and/or amounts drawn on
any instrument or fund constituting Credit Support.
HAZARD INSURANCE POLICIES
Unless otherwise specified in the related Prospectus Supplement, each
Pooling and Servicing Agreement will require the Master Servicer to use
reasonable efforts to cause each Mortgage Loan borrower to maintain a hazard
insurance policy that provides for such coverage as is required under the
related Mortgage or, if the Mortgage permits the holder thereof to dictate to
the borrower the insurance coverage to be maintained on the related Mortgaged
Property, such coverage as is consistent with the Master Servicer's normal
servicing procedures. Unless otherwise specified in the related Prospectus
Supplement, such coverage generally will be in an amount equal to the lesser of
the principal balance owing on such Mortgage Loan and the replacement cost of
the related Mortgaged Property. The ability of a Master Servicer to assure that
hazard insurance proceeds are appropriately applied may be dependent upon its
being named as an additional insured under any hazard insurance policy and under
any other insurance policy referred to below, or upon the extent to which
information concerning covered losses is furnished by borrowers. All amounts
collected by a Master Servicer under any such policy (except for amounts to be
applied to the restoration or repair of the Mortgaged Property or released to
the borrower in accordance with the Master Servicer's normal servicing
procedures and/or to the terms and conditions of the related Mortgage and
Mortgage Note) will be deposited in the related Certificate Account. The Pooling
and Servicing Agreement may provide that the Master Servicer may satisfy its
obligation to cause each borrower to maintain such a hazard insurance policy by
maintaining a blanket policy insuring against hazard losses on all of the
Mortgage Loans in a Trust Fund. If such blanket policy contains a deductible
clause, the Master Servicer will be required, in the event of a
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casualty covered by such blanket policy, to deposit in the related Certificate
Account all additional sums that would have been deposited therein under an
individual policy but were not because of such deductible clause.
In general, the standard form of fire and extended coverage policy covers
physical damage to or destruction of the improvements of the property by fire,
lightning, explosion, smoke, windstorm and hail, and riot, strike and civil
commotion, subject to the conditions and exclusions specified in each policy.
Although the policies covering the Mortgaged Properties will be underwritten by
different insurers under different state laws in accordance with different
applicable state forms, and therefore will not contain identical terms and
conditions, most such policies typically do not cover any physical damage
resulting from war, revolution, governmental actions, floods and other
water-related causes, earth movement (including earthquakes, landslides and
mudflows), wet or dry rot, vermin and domestic animals. Accordingly, a Mortgaged
Property may not be insured for losses arising from any such cause unless the
related Mortgage specifically requires, or permits the holder thereof to
require, such coverage.
The hazard insurance policies covering the Mortgaged Properties will
typically contain co-insurance clauses that in effect require an insured at all
times to carry insurance of a specified percentage (generally 80% to 90%) of the
full replacement value of the improvements on the property in order to recover
the full amount of any partial loss. If the insured's coverage falls below this
specified percentage, such clauses generally provide that the insurer's
liability in the event of partial loss does not exceed the lesser of (i) the
replacement cost of the improvements less physical depreciation and (ii) such
proportion of the loss as the amount of insurance carried bears to the specified
percentage of the full replacement cost of such improvements.
DUE-ON-SALE AND DUE-ON-ENCUMBRANCE PROVISIONS
Certain of the Mortgage Loans may contain a due-on-sale clause that entitles
the lender to accelerate payment of the Mortgage Loan upon any sale or other
transfer of the related Mortgaged Property made without the lender's consent.
Certain of the Mortgage Loans may also contain a due-on-encumbrance clause that
entitles the lender to accelerate the maturity of the Mortgage Loan upon the
creation of any other lien or encumbrance upon the Mortgaged Property. Unless
otherwise provided in the related Prospectus Supplement, the Master Servicer
will determine whether to exercise any right the Trustee may have under any such
provision in a manner consistent with the Master Servicer's normal servicing
procedures. Unless otherwise specified in the related Prospectus Supplement, the
Master Servicer will be entitled to retain as additional servicing compensation
any fee collected in connection with the permitted transfer of a Mortgaged
Property. See "Certain Legal Aspects of Mortgage Loans--Due-on-Sale and
Due-on-Encumbrance".
SERVICING COMPENSATION AND PAYMENT OF EXPENSES
Unless otherwise specified in the related Prospectus Supplement, a Master
Servicer's primary servicing compensation with respect to a series of
Certificates will come from the periodic payment to it of a specified portion of
the interest payments on each Mortgage Loan in the related Trust Fund. Because
such compensation is generally based on a percentage of the principal balance of
each such Mortgage Loan outstanding from time to time, it will decrease in
accordance with the amortization of the Mortgage Loans. If and to the extent
described in the related Prospectus Supplement, a Master Servicer's compensation
may also include: (i) an additional specified portion of the interest payments
on each defaulted Mortgage Loan serviced by the Master Servicer; (ii) subject to
any specified limitations, a fixed percentage of some or all of the collections
and proceeds received with respect to any defaulted Mortgage Loan as to which it
negotiated a work-out or that it liquidated; and (iii) any other amounts
specified in the related Prospectus Supplement. Unless otherwise specified in
the related Prospectus Supplement, the Master Servicer may retain, as additional
compensation, all or a portion of late payment
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charges, Prepayment Premiums, modification fees and other fees collected from
borrowers and any interest or other income that may be earned on funds held in
the Certificate Account. Any Sub-Servicer will receive a portion of the Master
Servicer's compensation as its sub-servicing compensation.
In addition to amounts payable to any Sub-Servicer, a Master Servicer may be
required, to the extent provided in the related Prospectus Supplement, to pay
from amounts that represent its servicing compensation certain expenses incurred
in connection with the administration of the related Trust Fund, including,
without limitation, payment of the fees and disbursements of independent
accountants, payment of fees and disbursements of the Trustee and any custodians
appointed thereby and payment of expenses incurred in connection with
distributions and reports to Certificateholders. Certain other expenses,
including certain expenses related to Mortgage Loan defaults and liquidations
and, to the extent so provided in the related Prospectus Supplement, interest on
such expenses at the rate specified therein, and the fees of any Special
Servicer, may be required to be borne by the Trust Fund.
EVIDENCE AS TO COMPLIANCE
Each Pooling and Servicing Agreement will provide that on or before a
specified date in each year, beginning the first such date that is at least a
specified number of months after the Cut-off Date, a firm of independent public
accountants will furnish a statement to the related Trustee to the effect that,
on the basis of an examination by such firm conducted substantially in
compliance with the Uniform Single Attestation Program for Mortgage Bankers
established by the Mortgage Bankers Association of America with respect to the
servicing of commercial and multifamily mortgage loans or the Audit Program for
Mortgages serviced for FHLMC, the servicing of mortgage loans under agreements
(including the related Pooling and Servicing Agreement) substantially similar to
each other was conducted in compliance with such agreements except for such
significant exceptions or errors in records that, in the opinion of the firm,
the Uniform Single Audit Program for Mortgage Bankers or the Audit Program for
Mortgages serviced for FHLMC requires it to report. In rendering its statement
such firm may rely, as to the matters relating to the direct servicing of
mortgage loans by Sub-Servicers, upon comparable statements for examinations
conducted substantially in compliance with the Uniform Single Audit Program for
Mortgage Bankers or the Audit Program for Mortgages serviced for FHLMC (rendered
within one year of such statement) of firms of independent public accountants
with respect to those Subservicers which also have been the subject of such an
examination.
Each Pooling and Servicing Agreement will also provide that, on or before a
specified date in each year, beginning the first such date that is at least a
specified number of months after the Cut-off Date, there is to be delivered to
the related Trustee an annual statement signed by one or more officers of the
Master Servicer to the effect that, to the best knowledge of each such officer,
the Master Servicer has fulfilled in all material respects its obligations under
the Pooling and Servicing Agreement throughout the preceding year or, if there
has been a material default in the fulfillment of any such obligation, such
statement shall specify each such known default and the nature and status
thereof. Such statement may be provided as a single form making the required
statements as to more than one Pooling and Servicing Agreement.
Unless otherwise specified in the related Prospectus Supplement, copies of
the annual accountants' statement and the annual statement of officers of a
Master Servicer may be obtained by Certificateholders upon written request to
the Trustee.
CERTAIN MATTERS REGARDING THE MASTER SERVICER AND THE DEPOSITOR
The entity servicing as Master Servicer under a Pooling and Servicing
Agreement may be an affiliate of the Depositor and may have other normal
business relationships with the Depositor or the Depositor's affiliates. Unless
otherwise specified in the related Prospectus Supplement, the Pooling and
Servicing
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Agreement for a series of Certificates will provide that the Master Servicer may
not resign from its obligations and duties thereunder except upon a
determination that performance of such duties is no longer permissible under
applicable law or except in connection with a permitted transfer of servicing.
No such resignation will become effective until the Trustee or a successor
servicer has assumed the Master Servicer's obligations and duties under the
Pooling and Servicing Agreement.
Unless otherwise specified in the related Prospectus Supplement, each
Pooling and Servicing Agreement will also provide that, except as set forth
below, neither the Master Servicer, the Depositor, nor any director, officer,
employee or agent of the Master Servicer or the Depositor will be under any
liability to the Trust Fund or the Certificateholders for any action taken or
for refraining from the taking of any action in good faith pursuant to the
Pooling and Servicing Agreement, or for errors in judgment; provided, however,
that neither the Master Servicer, the Depositor, nor any such person will be
protected against any liability which would otherwise be imposed by reason of
willful misfeasance, bad faith or negligence in the performance of duties or by
reason of reckless disregard of obligations and duties thereunder. Unless
otherwise specified in the related Prospectus Supplement, each Pooling and
Servicing Agreement will further provide that the Master Servicer, the
Depositor, and any director, officer, employee or agent of the Master Servicer
or the Depositor is entitled to indemnification by the Trust Fund and will be
held harmless against any loss, liability or expense incurred in connection with
any legal action relating to the Pooling and Servicing Agreement or the related
series of Certificates, other than any loss, liability or expense related to any
specific Mortgage Loan or Mortgage Loans (except any such loss, liability or
expense otherwise reimbursable pursuant to the Pooling and Servicing Agreement)
and any loss, liability or expense incurred by reason of willful misfeasance,
bad faith or negligence in the performance of duties thereunder or by reason of
reckless disregard of obligations and duties thereunder. In addition, each
Pooling and Servicing Agreement will provide that neither the Master Servicer
nor the Depositor will be under any obligation to appear in, prosecute or defend
any legal or administrative action that is not incidental to its respective
duties under the Pooling and Servicing Agreement and which in its opinion may
involve it in any expense or liability. The Master Servicer or the Depositor
may, however, in its discretion undertake any such action which it may deem
necessary or desirable with respect to the Pooling and Servicing Agreement and
the rights and duties of the parties thereto and the interests of the
Certificateholders thereunder. In such event, the legal expenses and costs of
such action and any liability resulting therefrom will be expenses, costs and
liabilities of the Trust Fund, and the Master Servicer or the Depositor, as the
case may be, will be entitled to be reimbursed therefor out of funds otherwise
distributable to Certificateholders.
Any person into which the Master Servicer may be merged or consolidated, any
person resulting from any merger or consolidation to which the Master Servicer
is a party or any person succeeding to the business of the Master Servicer will
be the successor of the Master Servicer under the Pooling and Servicing
Agreement, provided that, unless otherwise specified in the related Prospectus
Supplement, (i) such person is qualified to service mortgage loans on behalf of
FNMA or FHLMC and (ii) such merger, consolidation or succession does not
adversely affect the then-current ratings of the classes of Certificates of the
related series that have been rated. In addition, notwithstanding the
prohibition on its resignation, the Master Servicer may assign its rights under
a Pooling and Servicing Agreement to any person to whom the Master Servicer is
transferring a substantial portion of its mortgage servicing portfolio, provided
clauses (i) and (ii) above are satisfied. In the case of any such assignment,
the Master Servicer will be released from its obligations under such Pooling and
Servicing Agreement, other than liabilities and obligations incurred by it prior
to the time of such assignment.
EVENTS OF DEFAULT
Events of Default under the Pooling and Servicing Agreement in respect of a
series of Certificates, unless otherwise specified in the Prospectus Supplement,
will include, without limitation, (i) any failure by the Master Servicer to make
a required deposit to the Certificate Account or, if the Master Servicer is
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so required, to distribute to the holders of any class of Certificates of such
series any required payment which continues unremedied for 5 days after the
giving of written notice of such failure to the Master Servicer by the Trustee
or the Depositor, or to the Master Servicer, the Depositor and the Trustee by
the holders of Certificates of such class evidencing not less than 25% of the
aggregate Percentage Interests constituting such class; (ii) any failure by the
Master Servicer duly to observe or perform in any material respect any other of
its covenants or agreements in the Pooling and Servicing Agreement with respect
to such series of Certificates which continues unremedied for 30 days after the
giving of written notice of such failure to the Master Servicer by the Trustee
or the Depositor, or to the Master Servicer, the Depositor and the Trustee by
the holders of any class of Certificates of such series evidencing not less than
25% of the aggregate Percentage Interests constituting such class; and (iii)
certain events of insolvency, readjustment of debt, marshalling of assets and
liabilities or similar proceedings regarding the Master Servicer and certain
actions by the Master Servicer indicating its insolvency or inability to pay its
obligations. Material variations to the foregoing Events of Default (other than
to add thereto or to make them more restrictive) will be specified in the
related Prospectus Supplement. A default pursuant to the terms of any MBS
included in any Trust Fund will not constitute an Event of Default under the
related Pooling and Servicing Agreement.
RIGHTS UPON EVENT OF DEFAULT
So long as an Event of Default remains unremedied, either the Depositor or
the Trustee may, and at the direction of the holders of Certificates evidencing
not less than 51% of the aggregate undivided interests (or, if so specified in
the related Prospectus Supplement, voting rights) in the related Trust Fund the
Trustee shall, by written notification to the Master Servicer and to the
Depositor or the Trustee, as applicable, terminate all of the rights and
obligations of the Master Servicer under the Pooling and Servicing Agreement
covering such Trust Fund and in and to the related Mortgage Loans and the
proceeds thereof (other than any rights of the Master Servicer as
Certificateholder and other than any rights of the Master Servicer to payment
and/or reimbursement for previously earned servicing fees and outstanding
advances), whereupon the Trustee or, upon notice to the Depositor and with the
Depositor's consent, its designee will succeed to all responsibilities, duties
and liabilities of the Master Servicer under such Pooling and Servicing
Agreement (other than the obligation to purchase Mortgage Loans under certain
circumstances) and will be entitled to similar compensation arrangements. In the
event that the Trustee would be obligated to succeed the Master Servicer but is
unwilling so to act, it may appoint (or if it is unable so to act, it shall
appoint) or petition a court of competent jurisdiction for the appointment of, a
FNMA-or FHLMC-approved mortgage servicing institution with a net worth of at
least $10,000,000 to act as successor to the Master Servicer under the Pooling
and Servicing Agreement (unless otherwise set forth in the Pooling and Servicing
Agreement). Pending such appointment, the Trustee is obligated to act in such
capacity. The Trustee and such successor may agree upon the servicing
compensation to be paid, which in no event may be greater than the compensation
to the initial Master Servicer under the Pooling and Servicing Agreement.
No Certificateholder will have any right under a Pooling and Servicing
Agreement to institute any proceeding with respect to such Pooling and Servicing
Agreement unless such holder previously has given to the Trustee written notice
of default and the continuance thereof and unless the holders of Certificates of
any class evidencing not less than 25% of the aggregate Percentage Interests
constituting such class have made written request upon the Trustee to institute
such proceeding in its own name as Trustee thereunder and have offered to the
Trustee reasonable indemnity and the Trustee for 60 days after receipt of such
request and indemnity has neglected or refused to institute any such proceeding.
However, the Trustee will be under no obligation to exercise any of the trusts
or powers vested in it by the Pooling and Servicing Agreement or to institute,
conduct or defend any litigation thereunder or in relation thereto at the
request, order or direction of any of the holders of Certificates covered by
such Pooling and
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Servicing Agreement, unless such Certificateholders have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
which may be incurred therein or thereby.
AMENDMENT
Each Pooling and Servicing Agreement may be amended by the parties thereto,
without the consent of any of the holders of Certificates covered by such
Pooling and Servicing Agreement, (i) to cure any ambiguity, (ii) to correct or
supplement any provision therein which may be inconsistent with any other
provision therein or to correct any error, (iii) to change the timing and/or
nature of deposits in the Certificate Account, provided that (A) such change
would not adversely affect in any material respect the interests of any
Certificateholder, as evidenced by an opinion of counsel, and (B) such change
would not adversely affect the then-current rating of any rated classes of
Certificates, as evidenced by a letter from each applicable Rating Agency, (iv)
if a REMIC election has been made with respect to the related Trust Fund, to
modify, eliminate or add to any of its provisions (A) to such extent as shall be
necessary or desirable to maintain the qualification of the Trust Fund as a
REMIC or to avoid or minimize the risk of imposition of any tax on the related
Trust Fund, provided that the Trustee has received an opinion of counsel to the
effect that (1) such action is necessary or desirable to maintain such
qualification or to avoid or minimize such risk, and (2) such action will not
adversely affect in any material respect the interests of any holder of
Certificates covered by the Pooling and Servicing Agreement, or (C) to restrict
the transfer of the REMIC Residual Certificates, provided that the Depositor has
determined that the then-current ratings of the classes of the Certificates that
have been rated will not be adversely affected, as evidenced by a letter from
each applicable Rating Agency, and that any such amendment will not give rise to
any tax with respect to the transfer of the REMIC Residual Certificates to a
non-Permitted Transferee, (v) to make any other provisions with respect to
matters or questions arising under such Pooling and Servicing Agreement or any
other change, provided that such action will not adversely affect in any
material respect the interests of any Certificateholder, or (vi) to amend
specified provisions that are not material to holders of any class of
Certificates offered hereunder.
Unless otherwise specified in the Prospectus Supplement, the Pooling and
Servicing Agreement may also be amended by the parties thereto with the consent
of the holders of Certificates of each class affected thereby evidencing, in
each case, not less than 66% of the aggregate Percentage Interests constituting
such class for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of such Pooling and Servicing Agreement or
of modifying in any manner the rights of the holders of Certificates covered by
such Pooling and Servicing Agreement, except that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are required to be distributed on a Certificate of any
class without the consent of the holder of such Certificate or (ii) reduce the
aforesaid percentage of Certificates of any class the holders of which are
required to consent to any such amendment without the consent of the holders of
all Certificates of such class covered by such Pooling and Servicing Agreement
then outstanding.
Notwithstanding the foregoing, if a REMIC election has been made with
respect to the related Trust Fund, the Trustee will not be required to consent
to any amendment to a Pooling and Servicing Agreement without having first
received an opinion of counsel to the effect that such amendment or the exercise
of any power granted to the Master Servicer, the Depositor, the Trustee or any
other specified person in accordance with such amendment will not result in the
imposition of a tax on the related Trust Fund or cause such Trust Fund to fail
to qualify as a REMIC.
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THE TRUSTEE
The Trustee under each Pooling and Servicing Agreement will be named in the
related Prospectus Supplement. The commercial bank, national banking
association, banking corporation or trust company that serves as Trustee may
have typical banking relationships with the Depositor and its affiliates.
DUTIES OF THE TRUSTEE
The Trustee for each series of Certificates will make no representation as
to the validity or sufficiency of the related Pooling and Servicing Agreement,
the Certificates or any underlying Mortgage Asset or related document and will
not be accountable for the use or application by or on behalf of any Master
Servicer or Special Servicer of any funds paid to the Master Servicer or Special
Servicer in respect of the Certificates or the underlying Mortgage Assets. If no
Event of Default has occurred and is continuing, the Trustee for each series of
Certificates will be required to perform only those duties specifically required
under the related Pooling and Servicing Agreement. However, upon receipt of any
of the various certificates, reports or other instruments required to be
furnished to it pursuant to the related Pooling and Servicing Agreement, a
Trustee will be required to examine such documents and to determine whether they
conform to the requirements of such agreement.
CERTAIN MATTERS REGARDING THE TRUSTEE
As and to the extent described in the related Prospectus Supplement, the
fees and normal disbursements of any Trustee may be the expense of the related
Master Servicer or other specified person or may be required to be borne by the
related Trust Fund.
Unless otherwise specified in the related Prospectus Supplement, the Trustee
for each series of Certificates will be entitled to indemnification, from
amounts held in the Certificate Account for such series, for any loss, liability
or expense incurred by the Trustee in connection with the Trustee's acceptance
or administration of its trusts under the related Pooling and Servicing
Agreement; provided, however, that such indemnification will not extend to any
loss liability or expense incurred by reason of willful misfeasance, bad faith
or negligence on the part of the Trustee in the performance of its obligations
and duties thereunder, or by reason of its reckless disregard of such
obligations or duties.
Unless otherwise specified in the related Prospectus Supplement, the Trustee
for each series of Certificates will be entitled to execute any of its trusts or
powers under the related Pooling and Servicing Agreement or perform any of this
duties thereunder either directly or by or through agents or attorneys.
RESIGNATION AND REMOVAL OF THE TRUSTEE
The Trustee may resign at any time, in which event the Depositor will be
obligated to appoint a successor Trustee. The Depositor may also remove the
Trustee if the Trustee ceases to be eligible to continue as such under the
Pooling and Servicing Agreement or if the Trustee becomes insolvent. Upon
becoming aware of such circumstances, the Depositor will be obligated to appoint
a successor Trustee. The Trustee may also be removed at any time by the holders
of Certificates evidencing not less than 51% of the aggregate undivided
interests (or, if so specified in the related Prospectus Supplement, voting
rights) in the related Trust Fund. Any resignation or removal of the Trustee and
appointment of a successor Trustee will not become effective until acceptance of
the appointment by the successor Trustee.
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DESCRIPTION OF CREDIT SUPPORT
GENERAL
Credit Support may be provided with respect to one or more classes of the
Certificates of any series, or with respect to the related Mortgage Assets.
Credit Support may be in the form of a letter of credit, the subordination of
one or more classes of Certificates, the use of a pool insurance policy or
guarantee insurance, the establishment of one or more reserve funds or another
method of Credit Support described in the related Prospectus Supplement, or any
combination of the foregoing. If and to the extent so provided in the related
Prospectus Supplement, any of the foregoing forms of Credit Support may provide
credit enhancement for more than one series of Certificates.
Unless otherwise provided in the related Prospectus Supplement for a series
of Certificates, the Credit Support will not provide protection against all
risks of loss and will not guarantee payment to Certificateholders of all
amounts to which they are entitled under the related Pooling and Servicing
Agreement. If losses or shortfalls occur that exceed the amount covered by the
related Credit Support or that are of a type not covered by such Credit Support,
Certificateholders will bear their allocable share of deficiencies. Moreover, if
a form of Credit Support covers the Offered Certificates of more than one series
and losses on the related Mortgage Assets exceed the amount of such Credit
Support, it is possible that the holders of Offered Certificates of one (or
more) such series will be disproportionately benefited by such Credit Support to
the detriment of the holders of Offered Certificates of one (or more) other such
series.
If Credit Support is provided with respect to one or more classes of
Certificates of a series, or with respect to the related Mortgage Assets, the
related Prospectus Supplement will include a description of (i) the nature and
amount of coverage under such Credit Support, (ii) any conditions to payment
thereunder not otherwise described herein, (iii) the conditions (if any) under
which the amount of coverage under such Credit Support may be reduced and under
which such Credit Support may be terminated or replaced and (iv) the material
provisions relating to such Credit Support. Additionally, the related Prospectus
Supplement will set forth certain information with respect to the obligor, if
any, under any instrument of Credit Support. See "Risk Factors--Credit Support
Limitations".
SUBORDINATE CERTIFICATES
If so specified in the related Prospectus Supplement, one or more classes of
Certificates of a series may be Subordinate Certificates. To the extent
specified in the related Prospectus Supplement, the rights of the holders of
Subordinate Certificates to receive distributions from the Certificate Account
on any Distribution Date will be subordinated to the corresponding rights of the
holders of Senior Certificates. If so provided in the related Prospectus
Supplement, the subordination of a class may apply only in the event of certain
types of losses or shortfalls. The related Prospectus Supplement will set forth
information concerning the method and amount of subordination provided by a
class or classes of Subordinate Certificates in a series and the circumstances
under which such subordination will be available.
If the Mortgage Assets in any Trust Fund are divided into separate groups,
each supporting a separate class or classes of Certificates of the related
series, Credit Support may be provided by cross-support provisions requiring
that distributions be made on Senior Certificates evidencing interests in one
group of Mortgage Assets prior to distributions on Subordinate Certificates
evidencing interests in a different group of Mortgage Assets within the Trust
Fund. The Prospectus Supplement for a series that includes a cross-support
provision will describe the manner and conditions for applying such provisions.
INSURANCE OR GUARANTEES WITH RESPECT TO MORTGAGE LOANS
If so provided in the Prospectus Supplement for a series of Certificates,
Mortgage Loans included in the related Trust Fund will be covered for certain
default risks by insurance policies or guarantees. The
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related Prospectus Supplement will describe the nature of such default risks and
the extent of such coverage.
LETTER OF CREDIT
If so provided in the Prospectus Supplement for a series of Certificates,
deficiencies in amounts otherwise payable on such Certificates or certain
classes thereof will be covered by one or more letters of credit, issued by a
bank or other financial institution specified in such Prospectus Supplement (the
"Letter of Credit Bank"). Under a letter of credit, the Letter of Credit Bank
will be obligated to honor draws thereunder in an aggregate fixed dollar amount,
net of unreimbursed payments thereunder, generally equal to a percentage
specified in the related Prospectus Supplement of the aggregate principal
balance of the Mortgage Assets on the related Cut-off Date or of the initial
aggregate Certificate Balance of one or more classes of Certificates. If so
specified in the related Prospectus Supplement, the letter of credit may permit
draws only in the event of certain types of losses and shortfalls. The amount
available under the letter of credit will, in all cases, be reduced to the
extent of the unreimbursed payments thereunder and may otherwise be reduced as
described in the related Prospectus Supplement. The obligations of the Letter of
Credit Bank under the letter of credit for each series of Certificates will
expire at the earlier of the date specified in the related Prospectus Supplement
or the termination of the Trust Fund.
CERTIFICATE INSURANCE AND SURETY BONDS
If so provided in the Prospectus Supplement for a series of Certificates,
deficiencies in amounts otherwise payable on such Certificates or certain
classes thereof will be covered by insurance policies or surety bonds provided
by one or more insurance companies or sureties. Such instruments may cover, with
respect to one or more classes of Certificates of the related series, timely
distributions of interest or distributions of principal on the basis of a
schedule of principal distributions set forth in or determined in the manner
specified in the related Prospectus Supplement. The related Prospectus
Supplement will describe any limitations on the draws that may be made under any
such instrument.
RESERVE FUNDS
If so provided in the Prospectus Supplement for a series of Certificates,
deficiencies in amounts otherwise payable on such Certificates or certain
classes thereof will be covered (to the extent of available funds) by one or
more reserve funds in which cash, a letter of credit, Permitted Investments, a
demand note or a combination thereof will be deposited, in the amounts specified
in such Prospectus Supplement. If so specified in the related Prospectus
Supplement, the reserve fund for a series may also be funded over time by a
specified amount of certain collections received on the related Mortgage Assets.
Amounts on deposit in any reserve fund for a series will be applied for the
purposes, in the manner, and to the extent specified in the related Prospectus
Supplement. If so specified in the related Prospectus Supplement, reserve funds
may be established to provide protection only against certain types of losses
and shortfalls. Following each Distribution Date, amounts in a reserve fund in
excess of any amount required to be maintained therein may be released from the
reserve fund under the conditions and to the extent specified in the related
Prospectus Supplement.
If so specified in the related Prospectus Supplement, amounts deposited in
any reserve fund will be invested in Permitted Investments. Unless otherwise
specified in the related Prospectus Supplement, any reinvestment income or other
gain from such investments will be credited to the related reserve fund for such
series, and any loss resulting from such investments will be charged to such
reserve fund. However, such income may be payable to any related Master Servicer
or another service provider as additional compensation for its services. The
reserve fund, if any, for a series will not be a part of the Trust Fund unless
otherwise specified in the related Prospectus Supplement.
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CREDIT SUPPORT WITH RESPECT TO MBS
If so provided in the Prospectus Supplement for a series of Certificates,
any MBS included in the related Trust Fund and/or the related underlying
mortgage loans may be covered by one or more of the types of Credit Support
described herein. The related Prospectus Supplement will specify, as to each
such form of Credit Support, the information indicated above with respect
thereto, to the extent such information is material and available.
CERTAIN LEGAL ASPECTS OF MORTGAGE LOANS
The following discussion contains general summaries of certain legal aspects
of loans secured by commercial and multifamily residential properties. Because
such legal aspects are governed by applicable state law (which laws may differ
substantially), the summaries do not purport to be complete, to reflect the laws
of any particular state, or to encompass the laws of all states in which the
security for the Mortgage Loans (or mortgage loans underlying any MBS) is
situated. Accordingly, the summaries are qualified in their entirety by
reference to the applicable laws of those states. See "Description of the Trust
Funds--Mortgage Loans". For purposes of the following discussion, "Mortgage
Loan" includes a mortgage loan underlying an MBS.
GENERAL
Each Mortgage Loan will be evidenced by a note or bond and secured by an
instrument granting a security interest in real property, which may be a
mortgage, deed of trust or a deed to secure debt, depending upon the prevailing
practice and law in the state in which the related Mortgaged Property is
located. Mortgages, deeds of trust and deeds to secure debt are herein
collectively referred to as "mortgages". A mortgage creates a lien upon, or
grants a title interest in, the real property covered thereby, and represents
the security for the repayment of the indebtedness customarily evidenced by a
promissory note. The priority of the lien created or interest granted will
depend on the terms of the mortgage and, in some cases, on the terms of separate
subordination agreements or intercreditor agreements with others that hold
interests in the real property, the knowledge of the parties to the mortgage
and, generally, the order of recordation of the mortgage in the appropriate
public recording office. However, the lien of a recorded mortgage will generally
be subordinate to later-arising liens for real estate taxes and assessments and
other charges imposed under governmental police powers.
TYPES OF MORTGAGE INSTRUMENTS
There are two parties to a mortgage: a mortgagor (the borrower and usually
the owner of the subject property) and a mortgagee (the lender). In contrast, a
deed of trust is a three-party instrument, among a trustor (the equivalent of a
borrower), a trustee to whom the real property is conveyed, and a beneficiary
(the lender) for whose benefit the conveyance is made. Under a deed of trust,
the trustor grants the property, irrevocably until the debt is paid, in trust
and generally with a power of sale, to the trustee to secure repayment of the
indebtedness evidenced by the related note. A deed to secure debt typically has
two parties, pursuant to which the borrower, or grantor, conveys title to the
real property to the grantee, or lender, generally with a power of sale, until
such time as the debt is repaid. In a case where the borrower is a land trust,
there would be an additional party because legal title to the property is held
by a land trustee under a land trust agreement for the benefit of the borrower.
At origination of a mortgage loan involving a land trust, the borrower may
execute a separate undertaking to make payments on the mortgage note. In no
event is the land trustee personally liable for the mortgage note obligation.
The mortgagee's authority under a mortgage, the trustee's authority under a deed
of trust and the grantee's authority under a deed to secure debt are governed by
the express provisions of the related instrument, the law of the state in which
the real property is located, certain federal laws and, in some deed of trust
transactions, the directions of the beneficiary.
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LEASES AND RENTS
Mortgages that encumber income-producing property often contain an
assignment of rents and leases and/or may be accompanied by a separate
assignment of rents and leases, pursuant to which the borrower assigns to the
lender the borrower's right, title and interest as landlord under each lease and
the income derived therefrom, while (unless rents are to be paid directly to the
lender) retaining a revocable license to collect the rents for so long as there
is no default. If the borrower defaults, the license terminates and the lender
is entitled to collect the rents. Local law may require that the lender take
possession of the property and/or obtain a court-appointed receiver before
becoming entitled to collect the rents.
In most states, hotel and motel room rates are considered accounts
receivable under the Uniform Commercial Code ("UCC"); in cases where hotels or
motels constitute loan security, the rates are generally pledged by the borrower
as additional security for the loan. In general, the lender must file financing
statements in order to perfect its security interest in the room rates and must
file continuation statements, generally every five years, to maintain perfection
of such security interest. In certain cases, Mortgage Loans secured by hotels or
motels may be included in a Trust Fund even if the security interest in the room
rates was not perfected or the requisite UCC filings were allowed to lapse. Even
if the lender's security interest in room rates is perfected under applicable
non-bankruptcy law, it will generally be required to commence a foreclosure
action or otherwise take possession of the property in order to enforce its
rights to collect the room rates following a default. In the bankruptcy setting,
however, the lender will be stayed from enforcing its rights to collect room
rates, but those room rates (in light of certain revisions to the Bankruptcy
Code which are effective for all bankruptcy cases commenced on or after October
22, 1994) constitute "cash collateral" and therefore cannot be used by the
bankruptcy debtor without a hearing or lender's consent and unless the lender's
interest in the room rates is given adequate protection (e.g., cash payment for
otherwise encumbered funds or a replacement lien on unencumbered property, in
either case equal in value to the amount of room rates that the debtor proposes
to use, or other similar relief). See "--Bankruptcy Laws".
PERSONALTY
In the case of certain types of mortgaged properties, such as hotels, motels
and nursing homes, personal property (to the extent owned by the borrower and
not previously pledged) may constitute a significant portion of the property's
value as security. The creation and enforcement of liens on personal property
are governed by the UCC. Accordingly, if a borrower pledges personal property as
security for a mortgage loan, the lender generally must file UCC financing
statements in order to perfect its security interest therein, and must file
continuation statements, generally every five years, to maintain that
perfection. In certain cases, Mortgage Loans secured in part by personal
property may be included in a Trust Fund even if the security interest in such
personal property was not perfected or the requisite UCC filings were allowed to
lapse.
FORECLOSURE
GENERAL. Foreclosure is a legal procedure that allows the lender to recover
its mortgage debt by enforcing its rights and available legal remedies under the
mortgage. If the borrower defaults in payment or performance of its obligations
under the note or mortgage, the lender has the right to institute foreclosure
proceedings to sell the real property at public auction to satisfy the
indebtedness.
Foreclosure procedures vary from state to state. Two primary methods of
foreclosing a mortgage are judicial foreclosure, involving court proceedings,
and non-judicial foreclosure pursuant to a power of sale granted in the mortgage
instrument. Other foreclosure procedures are available in some states, but they
are either infrequently used or available only in limited circumstances.
A foreclosure action is subject to most of the delays and expenses of other
lawsuits if defenses are raised or counterclaims are interposed, and sometimes
requires several years to complete.
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JUDICIAL FORECLOSURE. A judicial foreclosure proceeding is conducted in a
court having jurisdiction over the mortgaged property. Generally, the action is
initiated by the service of legal pleadings upon all parties having a
subordinate interest of record in the real property and all parties in
possession of the property, under leases or otherwise, whose interests are
subordinate to the mortgage. Delays in completion of the foreclosure may
occasionally result from difficulties in locating defendants. When the lender's
right to foreclose is contested, the legal proceedings can be time-consuming.
Upon successful completion of a judicial foreclosure proceeding, the court
generally issues a judgment of foreclosure and appoints a referee or other
officer to conduct a public sale of the mortgaged property, the proceeds of
which are used to satisfy the judgment. Such sales are made in accordance with
procedures that vary from state to state.
EQUITABLE AND OTHER LIMITATIONS ON ENFORCEABILITY OF CERTAIN
PROVISIONS. United States courts have traditionally imposed general equitable
principles to limit the remedies available to lenders in foreclosure actions.
These principles are generally designed to relieve borrowers from the effects of
mortgage defaults perceived as harsh or unfair. Relying on such principles, a
court may alter the specific terms of a loan to the extent it considers
necessary to prevent or remedy an injustice, undue oppression or overreaching,
or may require the lender to undertake affirmative actions to determine the
cause of the borrower's default and the likelihood that the borrower will be
able to reinstate the loan. In some cases, courts have substituted their
judgment for the lender's and have required that lenders reinstate loans or
recast payment schedules in order to accommodate borrowers who are suffering
from a temporary financial disability. In other cases, courts have limited the
right of the lender to foreclose in the case of a nonmonetary default, such as a
failure to adequately maintain the mortgaged property or an impermissible
further encumbrance of the mortgaged property. Finally, some courts have
addressed the issue of whether federal or state constitutional provisions
reflecting due process concerns for adequate notice require that a borrower
receive notice in addition to statutorily-prescribed minimum notice. For the
most part, these cases have upheld the reasonableness of the notice provisions
or have found that a public sale under a mortgage providing for a power of sale
does not involve sufficient state action to trigger constitutional protections.
In addition, some states may have statutory protection such as the right of
the borrower to reinstate mortgage loans after commencement of foreclosure
proceedings but prior to a foreclosure sale.
NON-JUDICIAL FORECLOSURE/POWER OF SALE. In states permitting non-judicial
foreclosure proceedings, foreclosure of a deed of trust is generally
accomplished by a non-judicial trustee's sale pursuant to a power of sale
typically granted in the deed of trust. A power of sale may also be contained in
any other type of mortgage instrument if applicable law so permits. A power of
sale under a deed of trust allows a non-judicial public sale to be conducted
generally following a request from the beneficiary/lender to the trustee to sell
the property upon default by the borrower and after notice of sale is given in
accordance with the terms of the mortgage and applicable state law. In some
states, prior to such sale, the trustee under the deed of trust must record a
notice of default and notice of sale and send a copy to the borrower and to any
other party who has recorded a request for a copy of a notice of default and
notice of sale. In addition, in some states the trustee must provide notice to
any other party having an interest of record in the real property, including
junior lienholders. A notice of sale must be posted in a public place and, in
most states, published for a specified period of time in one or more newspapers.
The borrower or junior lienholder may then have the right, during a
reinstatement period required in some states, to cure the default by paying the
entire actual amount in arrears (without regard to the acceleration of the
indebtedness), plus the lender's expenses incurred in enforcing the obligation.
In other states, the borrower or the junior lienholder is not provided a period
to reinstate the loan, but has only the right to pay off the entire debt to
prevent the foreclosure sale. Generally, state law governs the procedure for
public sale, the parties entitled to notice, the method of giving notice and the
applicable time periods.
PUBLIC SALE. A third party may be unwilling to purchase a mortgaged
property at a public sale because of the difficulty in determining the exact
status of title to the property (due to, among other
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things, redemption rights that may exist) and because of the possibility that
physical deterioration of the property may have occurred during the foreclosure
proceedings. Therefore, it is common for the lender to purchase the mortgaged
property for an amount equal to the secured indebtedness and accrued and unpaid
interest plus the expenses of foreclosure, in which event the borrower's debt
will be extinguished, or for a lesser amount in order to preserve its right to
seek a deficiency judgment if such is available under state law and under the
terms of the Mortgage Loan documents. (The Mortgage Loans, however, are
generally expected to be non-recourse. See "Risk Factors--Investment in
Commercial and Multifamily Mortgage Loans".) Thereafter, subject to the
borrower's right in some states to remain in possession during a redemption
period, the lender will become the owner of the property and have both the
benefits and burdens of ownership, including the obligation to pay debt service
on any senior mortgages, to pay taxes, to obtain casualty insurance and to make
such repairs as are necessary to render the property suitable for sale. The
costs of operating and maintaining a commercial or multifamily residential
property may be significant and may be greater than the income derived from that
property. The lender also will commonly obtain the services of a real estate
broker and pay the broker's commission in connection with the sale or lease of
the property. Depending upon market conditions, the ultimate proceeds of the
sale of the property may not equal the lender's investment in the property.
Moreover, because of the expenses associated with acquiring, owning and selling
a mortgaged property, a lender could realize an overall loss on a mortgage loan
even if the mortgaged property is sold at foreclosure, or resold after it is
acquired through foreclosure, for an amount equal to the full outstanding
principal amount of the loan plus accrued interest.
The holder of a junior mortgage that forecloses on a mortgaged property does
so subject to senior mortgages and any other prior liens, and may be obliged to
keep senior mortgage loans current in order to avoid foreclosure of its interest
in the property. In addition, if the foreclosure of a junior mortgage triggers
the enforcement of a "due-on-sale" clause contained in a senior mortgage, the
junior mortgagee could be required to pay the full amount of the senior mortgage
indebtedness or face foreclosure.
RIGHTS OF REDEMPTION. The purposes of a foreclosure action are to enable
the lender to realize upon its security and to bar the borrower, and all persons
who have interests in the property that are subordinate to that of the
foreclosing lender, from exercise of their "equity of redemption". The doctrine
of equity of redemption provides that, until the property encumbered by a
mortgage has been sold in accordance with a properly conducted foreclosure and
foreclosure sale, those having interests that are subordinate to that of the
foreclosing lender have an equity of redemption and may redeem the property by
paying the entire debt with interest. Those having an equity of redemption must
generally be made parties and joined in the foreclosure proceeding in order for
their equity of redemption to be terminated.
The equity of redemption is a common-law (non-statutory) right which should
be distinguished from post-sale statutory rights of redemption. In some states,
after sale pursuant to a deed of trust or foreclosure of a mortgage, the
borrower and foreclosed junior lienors are given a statutory period in which to
redeem the property. In some states, statutory redemption may occur only upon
payment of the foreclosure sale price. In other states, redemption may be
permitted if the former borrower pays only a portion of the sums due. The effect
of a statutory right of redemption is to diminish the ability of the lender to
sell the foreclosed property because the exercise of a right of redemption would
defeat the title of any purchaser through a foreclosure. Consequently, the
practical effect of the redemption right is to force the lender to maintain the
property and pay the expenses of ownership until the redemption period has
expired. In some states, a post-sale statutory right of redemption may exist
following a judicial foreclosure, but not following a trustee's sale under a
deed of trust.
ANTI-DEFICIENCY LEGISLATION. Some or all of the Mortgage Loans may be
nonrecourse loans, as to which recourse in the case of default will be limited
to the Mortgaged Property and such other assets, if any, that were pledged to
secure the Mortgage Loan. However, even if a mortgage loan by its terms provides
for recourse to the borrower's other assets, a lender's ability to realize upon
those assets may be limited by state law. For example, in some states a lender
cannot obtain a deficiency judgment
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against the borrower following foreclosure or sale under a deed of trust. A
deficiency judgment is a personal judgment against the former borrower equal to
the difference between the net amount realized upon the public sale of the real
property and the amount due to the lender. Other statutes may require the lender
to exhaust the security afforded under a mortgage before bringing a personal
action against the borrower. In certain other states, the lender has the option
of bringing a personal action against the borrower on the debt without first
exhausting such security; however, in some of those states, the lender,
following judgment on such personal action, may be deemed to have elected a
remedy and thus may be precluded from foreclosing upon the security.
Consequently, lenders in those states where such an election of remedy provision
exists will usually proceed first against the security. Finally, other statutory
provisions, designed to protect borrowers from exposure to large deficiency
judgments that might result from bidding at below-market values at the
foreclosure sale, limit any deficiency judgment to the excess of the outstanding
debt over the fair market value of the property at the time of the sale.
LEASEHOLD CONSIDERATIONS. Mortgage Loans may be secured by a mortgage on
the borrower's leasehold interest in a ground lease. Leasehold mortgage loans
are subject to certain risks not associated with mortgage loans secured by a
lien on the fee estate of the borrower. The most significant of these risks is
that if the borrower's leasehold were to be terminated upon a lease default, the
leasehold mortgagee would lose its security. This risk may be lessened if the
ground lease requires the lessor to give the leasehold mortgagee notices of
lessee defaults and an opportunity to cure them, permits the leasehold estate to
be assigned to and by the leasehold mortgagee or the purchaser at a foreclosure
sale, and contains certain other protective provisions typically included in a
"mortgageable" ground lease. Certain Mortgage Loans, however, may be secured by
ground leases which do not contain these provisions.
CROSS-COLLATERALIZATION. Certain of the Mortgage Loans may be secured by
more than one mortgage covering properties located in more than one state.
Because of various state laws governing foreclosure or the exercise of a power
of sale and because, in general, foreclosure actions are brought in state court
and the courts of one state cannot exercise jurisdiction over property in
another state, it may be necessary upon a default under a cross-collateralized
Mortgage Loan to foreclose on the related mortgages in a particular order rather
than simultaneously in order to ensure that the lien of the mortgages is not
impaired or released.
BANKRUPTCY LAWS
Operation of the Bankruptcy Code and related state laws may interfere with
or affect the ability of a lender to realize upon collateral and/or to enforce a
deficiency judgment. For example, under the Bankruptcy Code, virtually all
actions (including foreclosure actions and deficiency judgment proceedings) to
collect a debt are automatically stayed upon the filing of the bankruptcy
petition and, often, no interest or principal payments are made during the
course of the bankruptcy case. The delay and the consequences thereof caused by
such automatic stay can be significant. Also, under the Bankruptcy Code, the
filing of a petition in bankruptcy by or on behalf of a junior lienor may stay
the senior lender from taking action to foreclose out such junior lien.
Under the Bankruptcy Code, provided certain substantive and procedural
safeguards protective of the lender are met, the amount and terms of a mortgage
loan secured by a lien on property of the debtor may be modified under certain
circumstances. For example, the outstanding amount of the loan may be reduced to
the then-current value of the property (with a corresponding partial reduction
of the amount of lender's security interest) pursuant to a confirmed plan or
lien avoidance proceeding, thus leaving the lender a general unsecured creditor
for the difference between such value and the outstanding balance of the loan.
Other modifications may include the reduction in the amount of each scheduled
payment, by means of a reduction in the rate of interest and/or an alteration of
the repayment schedule (with or without affecting the unpaid principal balance
of the loan), and/or by an extension (or shortening) of the term to maturity.
Some bankruptcy courts have approved plans, based on the particular facts of the
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reorganization case, that effected the cure of a mortgage loan default by paying
arrearages over a number of years. Also, a bankruptcy court may permit a debtor,
through its rehabilitative plan, to reinstate a loan mortgage payment schedule
even if the lender has obtained a final judgment of foreclosure prior to the
filing of the debtor's petition.
Federal bankruptcy law may also have the effect of interfering with or
affecting the ability of a secured lender to enforce the borrower's assignment
of rents and leases related to the mortgaged property. Under the Bankruptcy
Code, a lender may be stayed from enforcing the assignment, and the legal
proceedings necessary to resolve the issue could be time-consuming, with
resulting delays in the lender's receipt of the rents. Recent amendments to the
Bankruptcy code, however, may minimize the impairment of the lender's ability to
enforce the borrower's assignment of rents and leases. In addition to the
inclusion of hotel revenues within the definition of "cash collateral" as noted
previously in the section entitled "--Leases and Rents", the amendments provide
that a pre-petition security interest in rents or hotel revenues is designed to
overcome those cases holding that a security interest in rents is unperfected
under the laws of certain states until the lender has taken some further action,
such as commencing foreclosure or obtaining a receiver prior to activation of
the assignment of rents.
If a borrower's ability to make payment on a mortgage loan is dependent on
its receipt of rent payments under a lease of the related property, that ability
may be impaired by the commencement of a bankruptcy case relating to a lessee
under such lease. Under the Bankruptcy Code, the filing of a petition in
bankruptcy by or on behalf of a lessee results in a stay in bankruptcy against
the commencement or continuation of any state court proceeding for past due
rent, for accelerated rent, for damages or for a summary eviction order with
respect to a default under the lease that occurred prior to the filing of the
lessee's petition. In addition, the Bankruptcy Code generally provides that a
trustee or debtor-in-possession may, subject to approval of the court, (i)
assume the lease and retain it or assign it to a third party or (ii) reject the
lease. If the lease is assumed, the trustee or debtor-in-possession (or
assignee, if applicable) must cure any defaults under the lease, compensate the
lessor for its losses and provide the lessor with "adequate assurance" of future
performance. Such remedies may be insufficient, and any assurances provided to
the lessor may, in fact, be inadequate. If the lease is rejected, the lessor
will be treated as an unsecured creditor with respect to its claim for damages
for termination of the lease. The Bankruptcy Code also limits a lessor's damages
for lease rejection to the rent reserved by the lease (without regard to
acceleration) for the greater of one year, or 15%, not to exceed three years, of
the remaining term of the lease.
ENVIRONMENTAL CONSIDERATIONS
GENERAL. A lender may be subject to environmental risks when taking a
security interest in real property. Of particular concern may be properties that
are or have been used for industrial, manufacturing, military or disposal
activity. Such environmental risks include the possible diminution of the value
of a contaminated property or, as discussed below, potential liability for
clean-up costs or other remedial actions that could exceed the value of the
property or the amount of the lender's loan. In certain circumstances, a lender
may decide to abandon a contaminated mortgaged property as collateral for its
loan rather than foreclose and risk liability for clean-up costs.
SUPERLIEN LAWS. Under the laws of many states, contamination on a property
may give rise to a lien on the property for clean-up costs. In several states,
such a lien has priority over all existing liens, including those of existing
mortgages. In these states, the lien of a mortgage may lose its priority to such
a "superlien".
CERCLA. The federal Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended ("CERCLA"), imposes strict liability on
present and past "owners" and "operators" of contaminated real property for the
costs of clean-up. A secured lender may be liable as an "owner" or "operator" of
a contaminated mortgaged property if agents or employees of the lender have
participated in the management of such mortgaged property or the operations of
the borrower. Such
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liability may exist even if the lender did not cause or contribute to the
contamination and regardless of whether the lender has actually taken possession
of a mortgaged property through foreclosure, deed in lieu of foreclosure or
otherwise. Moreover, such liability is not limited to the original or
unamortized principal balance of a loan or to the value of the property securing
a loan. Excluded from CERCLA's definition of "owner" or "operator", however, is
a person "who without participating in the management of the facility, holds
indicia of ownership primarily to protect his security interest". This is the so
called "secured creditor exemption".
The Asset Conservation, Lender Liability and Deposit Insurance Act of 1996
(the "Act") amended, among other things, the provisions of CERCLA with respect
to lender liability and the secured creditor exemption. The Act offers
substantial protection to lenders by defining the activities in which a lender
can engage and still have the benefit of the secured creditor exemption. In
order for a lender to be deemed to have participated in the management of a
mortgaged property, the lender must actually participate in the operational
affairs of the property of the borrower. The Act provides that "merely having
the capacity to influence, or unexercised right to control" operations does not
constitute participation in management. A lender will lose the protection of the
secured creditor exemption only if it exercises decision-making control over the
borrower's environmental compliance and hazardous substance handling and
disposal practices, or assumes day-to-day management of all operational
functions of the mortgaged property. The Act also provides that a lender will
continue to have the benefit of the secured creditor exemption even if it
forecloses on a mortgaged property, purchases it at a foreclosure sale or
accepts a deed-in-lieu of foreclosure provided that the lender seeks to sell the
mortgaged property at the earliest practicable commercially reasonable time on
commercially reasonable terms.
CERTAIN OTHER FEDERAL AND STATE LAWS. Many states have statutes similar to
CERCLA, and not all of those statutes provide for a secured creditor exemption.
In addition, under federal law, there is potential liability relating to
hazardous wastes and underground storage tanks under the federal Resource
Conservation and Recovery Act ("RCRA").
In addition, the definition of "hazardous substances" under CERCLA
specifically excludes petroleum products. Subtitle I of RCRA governs underground
petroleum storage tanks. Under the Act the protections accorded to lenders under
CERCLA are also accorded to the holders of security interests in underground
storage tanks. It should be noted, however, that liability for cleanup of
petroleum contamination may be governed by state law, which may not provide for
any specific protection for secured creditors.
In a few states, transfers of some types of properties are conditioned upon
cleanup of contamination prior to transfer. In these cases, a lender that
becomes the owner of a property through foreclosure, deed in lieu of foreclosure
or otherwise, may be required to clean up the contamination before selling or
otherwise transferring the property.
Beyond statute-based environmental liability, there exist common law causes
of action (for example, actions based on nuisance or on toxic tort resulting in
death, personal injury or damage to property) related to hazardous environmental
conditions on a property. While it may be more difficult to hold a lender liable
in such cases, unanticipated or uninsured liabilities of the borrower may
jeopardize the borrower's ability to meet its loan obligations.
ADDITIONAL CONSIDERATIONS. The cost of remediating hazardous substance
contamination at a property can be substantial. If a lender becomes liable, it
can bring an action for contribution against the owner or operator who created
the environmental hazard, but that individual or entity may be without
substantial assets. Accordingly, it is possible that such costs could become a
liability of the Trust Fund and occasion a loss to the Certificateholders.
To reduce the likelihood of such a loss, unless otherwise specified in the
related Prospectus Supplement, the Pooling and Servicing Agreement will provide
that the Master Servicer, acting on behalf of the Trustee, may not acquire title
to a Mortgaged Property or take over its operation unless the Master
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Servicer, based solely (as to environmental matters) on a report prepared by a
person who regularly conducts environmental audits, has made the determination
that it is appropriate to do so, as described under "The Pooling and Servicing
Agreements--Realization Upon Defaulted Mortgage Loans".
If a lender forecloses on a mortgage secured by a property, the operations
on which are subject to environmental laws and regulations, the lender will be
required to operate the property in accordance with those laws and regulations.
Such compliance may entail substantial expense, especially in the case of
industrial or manufacturing properties.
In addition, a lender may be obligated to disclose environmental conditions
on a property to government entities and/or to prospective buyers (including
prospective buyers at a foreclosure sale or following foreclosure). Such
disclosure may decrease the amount that prospective buyers are willing to pay
for the affected property, sometimes substantially, and thereby decrease the
ability of the lender to recoup its investment in a loan upon foreclosure.
ENVIRONMENTAL SITE ASSESSMENTS. In most cases, an environmental site
assessment of each Mortgaged Property will have been performed in connection
with the origination of the related Mortgage Loan or at some time prior to the
issuance of the related Certificates. Environmental site assessments, however,
vary considerably in their content, quality and cost. Even when adhering to good
professional practices, environmental consultants will sometimes not detect
significant environmental problems because to do an exhaustive environmental
assessment would be far too costly and time-consuming to be practical.
DUE-ON-SALE AND DUE-ON-ENCUMBRANCE
Certain of the Mortgage Loans may contain "due-on-sale" and
"due-on-encumbrance" clauses that purport to permit the lender to accelerate the
maturity of the loan if the borrower transfers or encumbers the related
Mortgaged Property. In recent years, court decisions and legislative actions
placed substantial restrictions on the right of lenders to enforce such clauses
in many states. However, the Garn-St Germain Depository Institutions Act of 1982
(the "Garn Act") generally preempts state laws that prohibit the enforcement of
due-on-sale clauses and permits lenders to enforce these clauses in accordance
with their terms, subject to certain limitations as set forth in the Garn Act
and the regulations promulgated thereunder. Accordingly, a Master Servicer may
nevertheless have the right to accelerate the maturity of a Mortgage Loan that
contains a "due-on-sale" provision upon transfer of an interest in the property,
without regard to the Master Servicer's ability to demonstrate that a sale
threatens its legitimate security interest.
SUBORDINATE FINANCING
The terms of certain of the Mortgage Loans may not restrict the ability of
the borrower to use the Mortgaged Property as security for one or more
additional loans, or such restrictions may be unenforceable. Where a borrower
encumbers a mortgaged property with one or more junior liens, the senior lender
is subjected to additional risk. First, the borrower may have difficulty
servicing and repaying multiple loans. Moreover, if the subordinate financing
permits recourse to the borrower (as is frequently the case) and the senior loan
does not, a borrower may have more incentive to repay sums due on the
subordinate loan. Second, acts of the senior lender that prejudice the junior
lender or impair the junior lender's security may create a superior equity in
favor of the junior lender. For example, if the borrower and the senior lender
agree to an increase in the principal amount of or the interest rate payable on
the senior loan, the senior lender may lose its priority to the extent any
existing junior lender is harmed or the borrower is additionally burdened.
Third, if the borrower defaults on the senior loan and/or any junior loan or
loans, the existence of junior loans and actions taken by junior lenders can
impair the security available to the senior lender and can interfere with or
delay the taking of action by the senior lender. Moreover, the bankruptcy of a
junior lender may operate to stay foreclosure or similar proceedings by the
senior lender.
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DEFAULT INTEREST AND LIMITATIONS ON PREPAYMENTS
Notes and mortgages may contain provisions that obligate the borrower to pay
a late charge or additional interest if payments are not timely made, and in
some circumstances, may prohibit prepayments for a specified period and/or
condition prepayments upon the borrower's payment of prepayment fees or yield
maintenance penalties. In certain states, there are or may be specific
limitations upon the late charges which a lender may collect from a borrower for
delinquent payments. Certain states also limit the amounts that a lender may
collect from a borrower as an additional charge if the loan is prepaid. In
addition, the enforceability of provisions that provide for prepayment fees or
penalties upon an involuntary prepayment is unclear under the laws of many
states.
APPLICABILITY OF USURY LAWS
Title V of the Depository Institutions Deregulation and Monetary Control Act
of 1980 ("Title V") provides that state usury limitations shall not apply to
certain types of residential (including multifamily) first mortgage loans
originated by certain lenders after March 31, 1980. Title V authorized any state
to reimpose interest rate limits by adopting, before April 1, 1983, a law or
constitutional provision that expressly rejects application of the federal law.
In addition, even where Title V is not so rejected, any state is authorized by
the law to adopt a provision limiting discount points or other charges on
mortgage loans covered by Title V. Certain states have taken action to reimpose
interest rate limits and/or to limit discount points or other charges.
No Mortgage Loan originated in any state in which application of Title V has
been expressly rejected or a provision limiting discount points or other charges
has been adopted, will (if originated after that rejection or adoption) be
eligible for inclusion in a Trust Fund unless (i) such Mortgage Loan provides
for such interest rate, discount points and charges as are permitted in such
state or (ii) such Mortgage Loan provides that the terms thereof are to be
construed in accordance with the laws of another state under which such interest
rate, discount points and charges would not be usurious and the borrower's
counsel has rendered an opinion that such choice of law provision would be given
effect.
SOLDIERS' AND SAILORS' CIVIL RELIEF ACT OF 1940
Under the terms of the Soldiers' and Sailors' Civil Relief Act of 1940, as
amended (the "Relief Act"), a borrower who enters military service after the
origination of such borrower's mortgage loan (including a borrower who was in
reserve status and is called to active duty after origination of the Mortgage
Loan), may not be charged interest (including fees and charges) above an annual
rate of 6% during the period of such borrower's active duty status, unless a
court orders otherwise upon application of the lender. The Relief Act applies to
individuals who are members of the Army, Navy, Air Force, Marines, National
Guard, Reserves, Coast Guard and officers of the U.S. Public Health Service
assigned to duty with the military. Because the Relief Act applies to
individuals who enter military service (including reservists who are called to
active duty) after origination of the related mortgage loan, no information can
be provided as to the number of loans with individuals as borrowers that may be
affected by the Relief Act. Application of the Relief Act would adversely
affect, for an indeterminate period of time, the ability of a Master Servicer or
Special Servicer to collect full amounts of interest on certain of the Mortgage
Loans. Any shortfalls in interest collections resulting from the application of
the Relief Act would result in a reduction of the amounts distributable to the
holders of the related series of Certificates, and would not be covered by
advances or, unless otherwise specified in the related Prospectus Supplement,
any form of Credit Support provided in connection with such Certificates. In
addition, the Relief Act imposes limitations that would impair the ability of a
Master Servicer or Special Servicer to foreclose on an affected Mortgage Loan
during the borrower's period of active duty status, and, under certain
circumstances, during an additional three month period thereafter.
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CERTAIN FEDERAL INCOME TAX CONSEQUENCES
GENERAL
The following is a general discussion of the anticipated material federal
income tax consequences of the purchase, ownership and disposition of Offered
Certificates. The following summary is based on the Code as well as Treasury
regulations and administrative and judicial rulings and practice. Legislative,
judicial and administrative changes may occur, possibly with retroactive effect,
that could alter or modify the continued validity of the statements and
conclusions set forth herein. This summary does not purport to address all
federal income tax matters that may be relevant to particular holders. For
example, it generally is addressed only to original purchasers of the
Certificates that are United States investors, deals only with Certificates held
as capital assets within the meaning of Section 1221 of the Code, and does not
address tax consequences to holders that may be relevant to investors subject to
special rules, such as non-U.S. investors, banks, insurance companies,
tax-exempt organizations, electing large partnerships, dealers in securities or
currencies, mutual funds, REITs, S corporations, estates and trusts, investors
that hold the Certificates as part of a hedge, straddle, integrated or
conversion transaction, or holders whose "functional currency" is not the United
States dollar. Further, it does not address alternative minimum tax consequences
or the indirect effects on the holders of equity interests in an entity that is
a beneficial owner of the Certificates. Further, this discussion does not
address the state or local tax consequences of the purchase, ownership and
disposition of such Certificates. Investors should consult their tax advisers in
determining the federal, state, local, or other tax consequences to them of the
purchase, ownership and disposition of the Certificates offered hereunder. See
"State and Other Tax Consequences".
The following discussion addresses certificates ("REMIC Certificates")
representing interests in a Trust Fund, or a portion thereof, that the Master
Servicer or the Trustee will elect to have treated as a REMIC under Sections
860A through 860G (the "REMIC Provisions") of the Code. The Prospectus
Supplement for each series of Certificates will indicate whether a REMIC
election (or elections) will be made for the related Trust Fund and, if such an
election is to be made, will identify all "regular interests" and "residual
interests" in the REMIC. If a REMIC election will not be made for a Trust Fund,
the federal income tax consequences of the purchase, ownership and disposition
of the related Certificates will be set forth in the related Prospectus
Supplement. For purposes of this tax discussion, references to a
"Certificateholder" or a "holder" are to the beneficial owner of a Certificate.
The following discussion is limited in applicability to Offered
Certificates. Moreover, this discussion applies only to the extent that Mortgage
Assets held by a Trust Fund consist solely of Mortgage Loans. To the extent that
other Mortgage Assets, including REMIC certificates and mortgage pass-through
certificates, are to be held by a Trust Fund, the tax consequences associated
with the inclusion of such assets will be disclosed in the related Prospectus
Supplement. In addition, if Cash Flow Agreements, other than guaranteed
investment contracts, are included in a Trust Fund, the tax consequences
associated with such Cash Flow Agreements also will be disclosed in the related
Prospectus Supplement. See "Description of the Trust Funds--Cash Flow
Agreements".
Furthermore, the following discussion is based in part upon the rules
governing original issue discount that are set forth in Sections 1271-1273 and
1275 of the Code and in the Treasury regulations issued thereunder (the "OID
Regulations"), and in part upon the REMIC Provisions and the Treasury
regulations issued thereunder (the "REMIC Regulations"). The OID Regulations do
not adequately address certain issues relevant to, and in some instances provide
that they are not applicable to, securities such as the Certificates.
REMICS
CLASSIFICATION OF REMICS. Upon the issuance of each series of REMIC
Certificates, counsel to the Depositor will deliver its opinion generally to the
effect that, assuming compliance with all provisions of
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the related Pooling and Servicing Agreement, the related Trust Fund (or each
applicable portion thereof) will qualify as a REMIC and the REMIC Certificates
offered with respect thereto will be considered to evidence ownership of REMIC
Regular Certificates or REMIC Residual Certificates in that REMIC within the
meaning of the REMIC Provisions.
If an entity electing to be treated as a REMIC fails to comply with one or
more of the ongoing requirements of the Code for such status during any taxable
year, the Code provides that the entity will not be treated as a REMIC for such
year and thereafter. In that event, such entity may be taxable as a corporation
under Treasury regulations, and the related REMIC Certificates may not be
accorded the status or given the tax treatment described below. Although the
Code authorizes the Treasury Department to issue regulations providing relief in
the event of an inadvertent termination of REMIC status, no such regulations
have been issued. Any such relief, moreover, may be accompanied by sanctions,
such as the imposition of a corporate tax on all or a portion of the Trust
Fund's income for the period in which the requirements for such status are not
satisfied. The Pooling and Servicing Agreement with respect to each REMIC will
include provisions designed to maintain the Trust Fund's status as a REMIC under
the REMIC Provisions. It is not anticipated that the status of any Trust Fund as
a REMIC will be inadvertently terminated.
TIERED REMIC STRUCTURES. For certain series of REMIC Certificates, two or
more separate elections may be made to treat designated portions of the related
Trust Fund as REMICs ("Tiered REMICs") for federal income tax purposes. Upon the
issuance of any such series of REMIC Certificates, counsel to the Depositor will
deliver its opinion generally to the effect that, assuming compliance with all
provisions of the related Pooling and Servicing Agreement, the Tiered REMICs
will each qualify as a REMIC and the REMIC Certificates issued by the Tiered
REMICs, will be considered to evidence ownership of REMIC Regular Certificates
or REMIC Residual Certificates in the related REMIC within the meaning of the
REMIC Provisions.
TAXATION OF OWNERS OF REMIC REGULAR CERTIFICATES
GENERAL. Except as otherwise stated in this discussion, REMIC Regular
Certificates will be treated for federal income tax purposes as debt instruments
issued by the REMIC and not as ownership interests in the REMIC or its assets.
Moreover, holders of REMIC Regular Certificates that otherwise report income
under a cash method of accounting will be required to report income with respect
to REMIC Regular Certificates under an accrual method.
ORIGINAL ISSUE DISCOUNT. Certain REMIC Regular Certificates may be issued
with "original issue discount" within the meaning of Section 1273(a) of the
Code. Any holders of REMIC Regular Certificates issued with original issue
discount generally will be required to include original issue discount in income
as it accrues, in accordance with the method described below, in advance of the
receipt of the cash attributable to such income. In addition, Section 1272(a)(6)
of the Code provides special rules applicable to REMIC Regular Certificates and
certain other debt instruments issued with original issue discount. Regulations
have not been issued under that section.
The Code requires that a prepayment assumption be used with respect to
Mortgage Loans held by a REMIC in computing the accrual of original issue
discount on REMIC Regular Certificates issued by that REMIC, and that
adjustments be made in the amount and rate of accrual of such discount to
reflect differences between the actual prepayment rate and the prepayment
assumption. The prepayment assumption is to be determined in a manner prescribed
in Treasury regulations; as noted above, those regulations have not been issued.
The Conference Committee Report accompanying the Tax Reform Act of 1986 (the
"Committee Report") indicates that the regulations will provide that the
prepayment assumption used with respect to a REMIC Regular Certificate must be
the same as that used in pricing the initial offering of such REMIC Regular
Certificate. The prepayment assumption (the "Prepayment Assumption") used in
reporting original issue discount for each series of REMIC Regular Certificates
will
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be consistent with this standard and will be disclosed in the related Prospectus
Supplement. However, neither the Depositor nor any other person will make any
representation that the Mortgage Loans will in fact prepay at a rate conforming
to the Prepayment Assumption or at any other rate.
The original issue discount, if any, on a REMIC Regular Certificate will be
the excess of its stated redemption price at maturity over its issue price. The
issue price of a particular class of REMIC Regular Certificates will be the
first cash price at which a substantial amount of REMIC Regular Certificates of
that class is sold (excluding sales to bond houses, brokers and underwriters).
If less than a substantial amount of a particular class of REMIC Regular
Certificates is sold for cash on or prior to the date of their initial issuance
(the "Closing Date"), the issue price for such class will be the fair market
value of such class on the Closing Date. Under the OID Regulations, the stated
redemption price of a REMIC Regular Certificate is equal to the total of all
payments to be made on such Certificate other than "qualified stated interest".
"Qualified stated interest" is interest that is unconditionally payable at least
annually at a single fixed rate, or at a "qualified floating rate", an
"objective rate", a combination of a single fixed rate and one or more
"qualified floating rates" or one "qualified inverse floating rate", or a
combination of "qualified floating rates" that does not operate in a manner that
accelerates or defers interest payments on such REMIC Regular Certificate.
In the case of REMIC Regular Certificates bearing adjustable interest rates,
the determination of the total amount of original issue discount and the timing
of the inclusion thereof will vary according to the characteristics of such
REMIC Regular Certificates. If the original issue discount rules apply to such
Certificates, the related Prospectus Supplement will describe the manner in
which such rules will be applied with respect to those Certificates in preparing
information returns to the Certificateholders and the IRS.
Certain classes of the REMIC Regular Certificates may provide for the first
interest payment with respect to such Certificates to be made more than one
month after the date of issuance, a period which is longer than the subsequent
monthly intervals between interest payments. Assuming the "accrual period" (as
defined below) for original issue discount is each monthly period that ends on a
Distribution Date, in some cases, as a consequence of this "long first accrual
period", some or all interest payments may be required to be included in the
stated redemption price of the REMIC Regular Certificate and accounted for as
original issue discount. Because interest on REMIC Regular Certificates must in
any event be accounted for under an accrual method, applying this analysis would
result in only a slight difference in the timing of the inclusion in income of
the yield on the REMIC Regular Certificates.
In addition, if the accrued interest to be paid on the first Distribution
Date is computed with respect to a period that begins prior to the Closing Date,
a portion of the purchase price paid for a REMIC Regular Certificate will
reflect such accrued interest. In such cases, information returns provided to
the Certificateholders and the IRS will be based on the position that the
portion of the purchase price paid for the interest accrued with respect to
periods prior to the Closing Date is treated as part of the overall cost of such
REMIC Regular Certificate (and not as a separate asset the cost of which is
recovered entirely out of interest received on the next Distribution Date) and
that portion of the interest paid on the first Distribution Date in excess of
interest accrued for a number of days corresponding to the number of days from
the Closing Date to the first Distribution Date should be included in the stated
redemption price of such REMIC Regular Certificate. However, the OID Regulations
state that all or some portion of such accrued interest may be treated as a
separate asset the cost of which is recovered entirely out of interest paid on
the first Distribution Date. It is unclear how an election to do so would be
made under the OID Regulations and whether such an election could be made
unilaterally by a Certificateholder.
Notwithstanding the general definition of original issue discount, original
issue discount on a REMIC Regular Certificate will be considered to be DE
MINIMIS if it is less than 0.25% of the stated redemption price of the REMIC
Regular Certificate multiplied by its weighted average life. For this purpose,
the
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weighted average life of the REMIC Regular Certificate is computed as the sum of
the amounts determined, as to each payment included in the stated redemption
price of such REMIC Regular Certificate, by multiplying (i) the number of
complete years (rounding down for partial years) from the issue date until such
payment is expected to be made (presumably taking into account the Prepayment
Assumption) by (ii) a fraction, the numerator of which is the amount of the
payment, and the denominator of which is the stated redemption price at maturity
of such REMIC Regular Certificate. Under the OID Regulations, original issue
discount of only a DE MINIMIS amount (other than DE MINIMIS original issue
discount attributable to a so-called "teaser" interest rate or an initial
interest holiday) will be included in income as each payment of stated principal
is made, based on the product of the total amount of such DE MINIMIS original
issue discount and a fraction, the numerator of which is the amount of such
principal payment and the denominator of which is the outstanding stated
principal amount of the REMIC Regular Certificate. The OID Regulations also
would permit a Certificateholder to elect to accrue de minimis original issue
discount into income currently based on a constant yield method. See "--Taxation
of Owners of REMIC Regular Certificates--Market Discount" for a description of
such election under the OID Regulations.
If original issue discount on a REMIC Regular Certificate is in excess of a
DE MINIMIS amount, the holder of such Certificate must include in ordinary gross
income the sum of the "daily portions" of original issue discount for each day
during its taxable year on which it held such REMIC Regular Certificate,
including the purchase date but excluding the disposition date. In the case of
an original holder of a REMIC Regular Certificate, the daily portions of
original issue discount will be determined as follows.
As to each "accrual period", that is, unless otherwise stated in the related
Prospectus Supplement, each period that ends on a date that corresponds to a
Distribution Date and begins on the first day following the immediately
preceding accrual period (or in the case of the first such period, begins on the
Closing Date), a calculation will be made of the portion of the original issue
discount that accrued during such accrual period. The portion of original issue
discount that accrues in any accrual period will equal the excess, if any, of
(i) the sum of (a) the present value, as of the end of the accrual period, of
all of the distributions remaining to be made on the REMIC Regular Certificate,
if any, in future periods and (b) the distributions made on such REMIC Regular
Certificate during the accrual period of amounts included in the stated
redemption price, over (ii) the adjusted issue price of such REMIC Regular
Certificate at the beginning of the accrual period. The present value of the
remaining distributions referred to in the preceding sentence will be calculated
(i) assuming that distributions on the REMIC Regular Certificate will be
received in future periods based on the Mortgage Loans being prepaid at a rate
equal to the Prepayment Assumption and (ii) using a discount rate equal to the
original yield to maturity of the Certificate. For these purposes, the original
yield to maturity of the Certificate will be calculated based on its issue price
and assuming that distributions on the Certificate will be made in all accrual
periods based on the Mortgage Loans being prepaid at a rate equal to the
Prepayment Assumption. The adjusted issue price of a REMIC Regular Certificate
at the beginning of any accrual period will equal the issue price of such
Certificate, increased by the aggregate amount of original issue discount that
accrued with respect to such Certificate in prior accrual periods, and reduced
by the amount of any distributions made on such REMIC Regular Certificate in
prior accrual periods of amounts included in the stated redemption price. The
original issue discount accruing during any accrual period, computed as
described above, will be allocated ratably to each day during the accrual period
to determine the daily portion of original issue discount for such day.
A subsequent purchaser of a REMIC Regular Certificate that purchases such
Certificate at a cost (excluding any portion of such cost attributable to
accrued qualified stated interest) less than its remaining stated redemption
price will also be required to include in gross income the daily portions of any
original issue discount with respect to such Certificate. However, each such
daily portion will be reduced, if such cost is in excess of its "adjusted issue
price", in proportion to the ratio such excess
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bears to the aggregate original issue discount remaining to be accrued on such
REMIC Regular Certificate. The adjusted issue price of a REMIC Regular
Certificate on any given day equals the sum of (i) the adjusted issue price (or,
in the case of the first accrual period, the issue price) of such Certificate at
the beginning of the accrual period which includes such day and (ii) the daily
portions of original issue discount for all days during such accrual period
prior to such day.
MARKET DISCOUNT. A Certificateholder that purchases a REMIC Regular
Certificate at a market discount, that is, in the case of a REMIC Regular
Certificate issued without original issue discount, at a purchase price less
than its remaining stated principal amount, or in the case of a REMIC Regular
Certificate issued with original issue discount, at a purchase price less than
its adjusted issue price will recognize gain upon receipt of each distribution
representing stated redemption price. In particular, under Section 1276 of the
Code such a Certificateholder generally will be required to allocate the portion
of each such distribution representing stated redemption price first to accrued
market discount not previously included in income, and to recognize ordinary
income to that extent. A Certificateholder may elect to include market discount
in income currently as it accrues rather than including it on a deferred basis
in accordance with the foregoing. If made, such election will apply to all
market discount bonds acquired by such Certificateholder on or after the first
day of the first taxable year to which such election applies. In addition, the
OID Regulations permit a Certificateholder to elect to accrue all interest,
discount (including DE MINIMIS market or original issue discount) and premium in
income as interest, based on a constant yield method. If such an election were
made with respect to a REMIC Regular Certificate with market discount, the
Certificateholder would be deemed to have made an election to include currently
market discount in income with respect to all other debt instruments having
market discount that such Certificateholder acquires during the taxable year of
the election or thereafter, and possibly previously acquired instruments.
Similarly, a Certificateholder that made this election for a Certificate that is
acquired at a premium would be deemed to have made an election to amortize bond
premium with respect to all debt instruments having amortizable bond premium
that such Certificateholder owns or acquires. See "--Taxation of Owners of REMIC
Regular Certificates--Premium" below. Each of these elections to accrue
interest, discount and premium with respect to a Certificate on a constant yield
method or as interest would be irrevocable.
However, market discount with respect to a REMIC Regular Certificate will be
considered to be DE MINIMIS for purposes of Section 1276 of the Code if such
market discount is less than 0.25% of the remaining stated redemption price of
such REMIC Regular Certificate multiplied by the number of complete years to
maturity remaining after the date of its purchase. In interpreting a similar
rule with respect to original issue discount on obligations payable in
installments, the OID Regulations refer to the weighted average maturity of
obligations, and it is likely that the same rule will be applied with respect to
market discount, presumably taking into account the Prepayment Assumption. If
market discount is treated as DE MINIMIS under this rule, it appears that the
actual discount would be treated in a manner similar to original issue discount
of a DE MINIMIS amount. See "--Taxation of Owners of REMIC Regular
Certificates--Original Issue Discount" above. Such treatment would result in
discount being included in income at a slower rate than discount would be
required to be included in income using the method described above.
Section 1276(b)(3) of the Code specifically authorizes the Treasury
Department to issue regulations providing for the method for accruing market
discount on debt instruments, the principal of which is payable in more than one
installment. Until regulations are issued by the Treasury Department, certain
rules described in the Committee Report apply. The Committee Report indicates
that in each accrual period market discount on REMIC Regular Certificates should
accrue, at the Certificateholder's option: (i) on the basis of a constant yield
method, (ii) in the case of a REMIC Regular Certificate issued without original
issue discount, in an amount that bears the same ratio to the total remaining
market discount as the stated interest paid in the accrual period bears to the
total amount of stated interest remaining to be paid on the REMIC Regular
Certificate as of the beginning of the accrual period, or (iii) in the case of a
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REMIC Regular Certificate issued with original issue discount, in an amount that
bears the same ratio to the total remaining market discount as the original
issue discount accrued in the accrual period bears to the total original issue
discount remaining on the REMIC Regular Certificate at the beginning of the
accrual period. Moreover, the Prepayment Assumption used in calculating the
accrual of original issue discount is also used in calculating the accrual of
market discount. Because the regulations referred to in this paragraph have not
been issued, it is not possible to predict what effect such regulations might
have on the tax treatment of a REMIC Regular Certificate purchased at a discount
in the secondary market.
To the extent that REMIC Regular Certificates provide for monthly or other
periodic distributions throughout their term, the effect of these rules may be
to require market discount to be includible in income at a rate that is not
significantly slower than the rate at which such discount would accrue if it
were original issue discount. Moreover, in any event a holder of a REMIC Regular
Certificate generally will be required to treat a portion of any gain on the
sale or exchange of such Certificate as ordinary income to the extent of the
market discount accrued to the date of disposition under one of the foregoing
methods, less any accrued market discount previously reported as ordinary
income.
Further, under Section 1277 of the Code a holder of a REMIC Regular
Certificate may be required to defer a portion of its interest deductions for
the taxable year attributable to any indebtedness incurred or continued to
purchase or carry a REMIC Regular Certificate purchased with market discount.
For these purposes, the DE MINIMIS rule referred to above applies. Any such
deferred interest expense would not exceed the market discount that accrues
during such taxable year and is, in general, allowed as a deduction not later
than the year in which such market discount is includible in income. If such
holder elects to include market discount in income currently as it accrues on
all market discount instruments acquired by such holder in that taxable year or
thereafter, the interest deferral rule described above will not apply.
PREMIUM. A REMIC Regular Certificate purchased at a cost (excluding any
portion of such cost attributable to accrued qualified stated interest) greater
than its remaining stated redemption price will be considered to be purchased at
a premium. The holder of such a REMIC Regular Certificate may elect under
Section 171 of the Code to amortize such premium under the constant yield method
over the life of the Certificate. If made, such an election will apply to all
debt instruments having amortizable bond premium that the holder owns or
subsequently acquires. Amortizable premium will be treated as an offset to
interest income on the related debt instrument, rather than as a separate
interest deduction. The OID Regulations also permit Certificateholders to elect
to include all interest, discount and premium in income based on a constant
yield method, further treating the Certificateholder as having made the election
to amortize premium generally. See "--Taxation of Owners of REMIC Regular
Certificates-- Market Discount" above. The Committee Report states that the same
rules that apply to accrual of market discount (which rules will require use of
a Prepayment Assumption in accruing market discount with respect to REMIC
Regular Certificates without regard to whether such Certificates have original
issue discount) will also apply in amortizing bond premium under Section 171 of
the Code.
REALIZED LOSSES. Under Section 166 of the Code, both corporate holders of
the REMIC Regular Certificates and noncorporate holders of the REMIC Regular
Certificates that acquire such Certificates in connection with a trade or
business should be allowed to deduct, as ordinary losses, any losses sustained
during a taxable year in which their Certificates become wholly or partially
worthless as the result of one or more realized losses on the Mortgage Loans.
However, it appears that a noncorporate holder that does not acquire a REMIC
Regular Certificate in connection with a trade or business will not be entitled
to deduct a loss under Section 166 of the Code until such holder's Certificate
becomes wholly worthless (i.e., until its outstanding principal balance has been
reduced to zero) and that the loss will be characterized as a short-term capital
loss.
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Each holder of a REMIC Regular Certificate will be required to accrue
interest and original issue discount with respect to such Certificate, without
giving effect to any reductions in distributions attributable to defaults or
delinquencies on the Mortgage Loans or the Underlying Certificates until it can
be established that any such reduction ultimately will not be recoverable. As a
result, the amount of taxable income reported in any period by the holder of a
REMIC Regular Certificate could exceed the amount of economic income actually
realized by the holder in such period. Although the holder of a REMIC Regular
Certificate eventually will recognize a loss or reduction in income attributable
to previously accrued and included income that as the result of a realized loss
ultimately will not be realized, the law is unclear with respect to the timing
and character of such loss or reduction in income.
TAXATION OF OWNERS OF REMIC RESIDUAL CERTIFICATES
GENERAL. As residual interests, the REMIC Residual Certificates will be
subject to tax rules that differ significantly from those that would apply if
the REMIC Residual Certificates were treated for federal income tax purposes as
direct ownership interests in the Mortgage Loans or as debt instruments issued
by the REMIC.
A holder of a REMIC Residual Certificate generally will be required to
report its daily portion of the taxable income or, subject to the limitations
noted in this discussion, the net loss of the REMIC for each day during a
calendar quarter that such holder owned such REMIC Residual Certificate. For
this purpose, the taxable income or net loss of the REMIC will be allocated to
each day in the calendar quarter ratably using a "30 days per month/90 days per
quarter/360 days per year" convention unless otherwise disclosed in the related
Prospectus Supplement. The daily amounts so allocated will then be allocated
among the REMIC Residual Certificateholders in proportion to their respective
ownership interests on such day. Any amount included in the gross income or
allowed as a loss of any REMIC Residual Certificateholder by virtue of this
paragraph will be treated as ordinary income or loss. The taxable income of the
REMIC will be determined under the rules described below in "--Taxable Income of
the REMIC" and will be taxable to the REMIC Residual Certificateholders without
regard to the timing or amount of cash distributions by the REMIC. Ordinary
income derived from REMIC Residual Certificates will be "portfolio income" for
purposes of the taxation of taxpayers subject to limitations under Section 469
of the Code on the deductibility of "passive losses".
A holder of a REMIC Residual Certificate that purchased such Certificate
from a prior holder of such Certificate also will be required to report on its
federal income tax return amounts representing its daily share of the taxable
income (or net loss) of the REMIC for each day that it holds such REMIC Residual
Certificate. Those daily amounts generally will equal the amounts of taxable
income or net loss determined as described above. The Committee Report indicates
that certain modifications of the general rules may be made, by regulations,
legislation or otherwise to reduce (or increase) the income of a REMIC Residual
Certificateholder that purchased such REMIC Residual Certificate from a prior
holder of such Certificate at a price greater than (or less than) the adjusted
basis (as defined below) such REMIC Residual Certificate would have had in the
hands of an original holder of such Certificate. The REMIC Regulations, however,
do not provide for any such modifications.
Any payments received by a holder of a REMIC Residual Certificate in
connection with the acquisition of such REMIC Residual Certificate will be taken
into account in determining the income of such holder for federal income tax
purposes. Although it appears likely that any such payment would be includible
in income immediately upon its receipt, the IRS might assert that such payment
should be included in income over time according to an amortization schedule or
according to some other method. Because of the uncertainty concerning the
treatment of such payments, holders of REMIC Residual Certificates should
consult their tax advisors concerning the treatment of such payments for income
tax purposes.
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The amount of income REMIC Residual Certificateholders will be required to
report (or the tax liability associated with such income) may exceed the amount
of cash distributions received from the REMIC for the corresponding period.
Consequently, REMIC Residual Certificateholders should have other sources of
funds sufficient to pay any federal income taxes due as a result of their
ownership of REMIC Residual Certificates or unrelated deductions against which
income may be offset, subject to the rules relating to "excess inclusions",
residual interests without "significant value" and "noneconomic" residual
interests discussed below. The fact that the tax liability associated with the
income allocated to REMIC Residual Certificateholders may exceed the cash
distributions received by such REMIC Residual Certificateholders for the
corresponding period may significantly adversely affect such REMIC Residual
Certificateholders' after-tax rate of return.
TAXABLE INCOME OF THE REMIC. The taxable income of the REMIC will equal the
income from the Mortgage Loans and other assets of the REMIC plus any
cancellation of indebtedness income due to the allocation of realized losses to
REMIC Regular Certificates, less the deductions allowed to the REMIC for
interest (including original issue discount and reduced by any premium on
issuance) on the REMIC Regular Certificates (and any other class of REMIC
Certificates constituting "regular interests" in the REMIC not offered hereby),
amortization of any premium on the Mortgage Loans, bad debt losses with respect
to the Mortgage Loans and, except as described below, for servicing,
administrative and other expenses.
For purposes of determining its taxable income, the REMIC will have an
initial aggregate basis in its assets equal to the sum of the issue prices of
all REMIC Certificates (or, if a class of REMIC Certificates is not sold
initially, their fair market values). Such aggregate basis will be allocated
among the Mortgage Loans and the other assets of the REMIC in proportion to
their respective fair market values. The issue price of any REMIC Certificates
offered hereby will be determined in the manner described above under
"--Taxation of Owners of REMIC Regular Certificates--Original Issue Discount".
The issue price of a REMIC Certificate received in exchange for an interest in
the Mortgage Loans or other property will equal the fair market value of such
interests in the Mortgage Loans or other property. Accordingly, if one or more
classes of REMIC Certificates are retained initially rather than sold, the
Master Servicer or the Trustee may be required to estimate the fair market value
of such interests in order to determine the basis of the REMIC in the Mortgage
Loans and other property held by the REMIC.
Subject to possible application of the DE MINIMIS rules, the method of
accrual by the REMIC of original issue discount income and market discount
income with respect to Mortgage Loans that it holds will be equivalent to the
method for accruing original issue discount income for holders of REMIC Regular
Certificates (that is, under the constant yield method taking into account the
Prepayment Assumption). However, a REMIC that acquires loans at a market
discount must include such market discount in income currently, as it accrues,
on a constant yield basis. See "--Taxation of Owners of REMIC Regular
Certificates" above, which describes a method for accruing such discount income
that is analogous to that required to be used by a REMIC as to Mortgage Loans
with market discount that it holds.
A Mortgage Loan will be deemed to have been acquired with discount (or
premium) to the extent that the REMIC's basis therein, determined as described
in the preceding paragraph, is less than (or greater than) its stated redemption
price. Any such discount will be includible in the income of the REMIC as it
accrues, in advance of receipt of the cash attributable to such income, under a
method similar to the method described above for accruing original issue
discount on the REMIC Regular Certificates. It is anticipated that each REMIC
will elect under Section 171 of the Code to amortize any premium on the Mortgage
Loans. Premium on any Mortgage Loan to which such election applies may be
amortized under a constant yield method, presumably taking into account a
Prepayment Assumption. Further, such an election would not apply to any Mortgage
Loan originated on or before September 27, 1985. Instead, premium on such a
Mortgage Loan should be allocated among the principal
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payments thereon and be deductible by the REMIC as those payments become due or
upon the prepayment of such Mortgage Loan.
A REMIC will be allowed deductions for interest (including original issue
discount) on the REMIC Regular Certificates (including any other class of REMIC
Certificates constituting "regular interests" in the REMIC not offered hereby)
equal to the deductions that would be allowed if the REMIC Regular Certificates
(including any other class of REMIC Certificates constituting "regular
interests" in the REMIC not offered hereby) were indebtedness of the REMIC.
Original issue discount will be considered to accrue for this purpose as
described above under "--Taxation of Owners of REMIC Regular
Certificates--Original Issue Discount", except that the DE MINIMIS rule and the
adjustments for subsequent holders of REMIC Regular Certificates (including any
other class of REMIC Certificates constituting "regular interests" in the REMIC
not offered hereby) described therein will not apply.
If a class of REMIC Regular Certificates is issued at a price in excess of
the stated redemption price of such class (such excess "Issue Premium"), the net
amount of interest deductions that are allowed the REMIC in each taxable year
with respect to the REMIC Regular Certificates of such class will be reduced by
an amount equal to the portion of the Issue Premium that is considered to be
amortized or repaid in that year. Although the matter is not entirely certain,
it is likely that Issue Premium would be amortized under a constant yield method
in a manner analogous to the method of accruing original issue discount
described above under "--Taxation of Owners of REMIC Regular
Certificates--Original Issue Discount".
As a general rule, the taxable income of a REMIC will be determined in the
same manner as if the REMIC were an individual having the calendar year as its
taxable year and using the accrual method of accounting. However, no item of
income, gain, loss or deduction allocable to a prohibited transaction will be
taken into account. See "--Prohibited Transactions Tax and Other Taxes" below.
Further, the limitation on miscellaneous itemized deductions imposed on
individuals by Section 67 of the Code (which allows such deductions only to the
extent they exceed in the aggregate two percent of the taxpayer's adjusted gross
income) will not be applied at the REMIC level so that the REMIC will be allowed
deductions for servicing, administrative and other non-interest expenses in
determining its taxable income. All such expenses will be allocated as a
separate item to the holders of REMIC Certificates, subject to the limitation of
Section 67 of the Code. See "--Possible Pass-Through of Miscellaneous Itemized
Deductions" below. If the deductions allowed to the REMIC exceed its gross
income for a calendar quarter, such excess will be the net loss for the REMIC
for that calendar quarter.
BASIS RULES, NET LOSSES AND DISTRIBUTIONS. The adjusted basis of a REMIC
Residual Certificate will be equal to the amount paid for such REMIC Residual
Certificate, increased by amounts included in the income of the REMIC Residual
Certificateholder and decreased (but not below zero) by distributions made, and
by net losses allocated, to such REMIC Residual Certificateholder.
A REMIC Residual Certificateholder is not allowed to take into account any
net loss for any calendar quarter to the extent such net loss exceeds such REMIC
Residual Certificateholder's adjusted basis in its REMIC Residual Certificate as
of the close of such calendar quarter (determined without regard to such net
loss). Any loss that is not currently deductible by reason of this limitation
may be carried forward indefinitely to future calendar quarters and, subject to
the same limitation, may be used only to offset income from the REMIC Residual
Certificate. The ability of REMIC Residual Certificateholders to deduct net
losses may be subject to additional limitations under the Code, as to which
REMIC Residual Certificateholders should consult their tax advisors.
Any distribution on a REMIC Residual Certificate will be treated as a
non-taxable return of capital to the extent it does not exceed the holder's
adjusted basis in such REMIC Residual Certificate. To the extent a distribution
on a REMIC Residual Certificate exceeds such adjusted basis, it will be treated
as gain from the sale of such REMIC Residual Certificate. Holders of certain
REMIC Residual Certificates may be entitled to distributions early in the term
of the related REMIC under circumstances in which their bases in such REMIC
Residual Certificates will not be sufficiently large that such distributions
will be
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treated as non-taxable returns of capital. Their bases in such REMIC Residual
Certificates will initially equal the amount paid for such REMIC Residual
Certificates and will be increased by their allocable shares of taxable income
of the REMIC. However, such bases increases may not occur until the end of the
calendar quarter, or perhaps the end of the calendar year, with respect to which
such REMIC taxable income is allocated to the REMIC Residual Certificateholders.
To the extent such REMIC Residual Certificateholders' initial bases are less
than the distributions to such REMIC Residual Certificateholders, and increases
in such initial bases either occur after such distributions or (together with
their initial bases) are less than the amount of such distributions, gain will
be recognized to such REMIC Residual Certificateholders on such distributions
and will be treated as gain from the sale of their REMIC Residual Certificates.
The effect of these rules is that a REMIC Residual Certificateholder may not
amortize its basis in a REMIC Residual Certificate, but may only recover its
basis through distributions, through the deduction of any net losses of the
REMIC or upon the sale of its REMIC Residual Certificate. See "--Sales of REMIC
Certificates" below. For a discussion of possible modifications of these rules
that may require adjustments to income of a holder of a REMIC Residual
Certificate other than an original holder in order to reflect any difference
between the cost of such REMIC Residual Certificate to such REMIC Residual
Certificateholder and the adjusted basis such REMIC Residual Certificate would
have in the hands of an original holder see "--Taxation of Owners of REMIC
Residual Certificates--General" above.
EXCESS INCLUSIONS. Any "excess inclusions" with respect to a REMIC Residual
Certificate will be subject to federal income tax in all events.
In general, the "excess inclusions" with respect to a REMIC Residual
Certificate for any calendar quarter will be the excess, if any, of (i) the
daily portions of REMIC taxable income allocable to such REMIC Residual
Certificate over (ii) the sum of the "daily accruals" (as defined below) for
each day during such quarter that such REMIC Residual Certificate was held by
such REMIC Residual Certificateholder. The daily accruals of a REMIC Residual
Certificateholder will be determined by allocating to each day during a calendar
quarter its ratable portion of the product of the "adjusted issue price" of the
REMIC Residual Certificate at the beginning of the calendar quarter and 120% of
the "long-term Federal rate" in effect on the Closing Date. For this purpose,
the adjusted issue price of a REMIC Residual Certificate as of the beginning of
any calendar quarter will be equal to the issue price of the REMIC Residual
Certificate, increased by the sum of the daily accruals for all prior quarters
and decreased (but not below zero) by any distributions made with respect to
such REMIC Residual Certificate before the beginning of such quarter. The issue
price of a REMIC Residual Certificate is the initial offering price to the
public (excluding bond houses and brokers) at which a substantial amount of the
REMIC Residual Certificates were sold. The "long-term Federal rate" is an
average of current yields on Treasury securities with a remaining term of
greater than nine years, computed and published monthly by the IRS. Although it
has not done so, the Treasury has authority to issue regulations that would
treat the entire amount of income accruing on a REMIC Residual Certificate as an
excess inclusion if the REMIC Residual Certificates are considered not to have
"significant value."
For REMIC Residual Certificateholders, excess inclusions (i) will not be
permitted to be offset by deductions, losses or loss carryovers from other
activities, (ii) will be treated as "unrelated business taxable income" to an
otherwise tax-exempt organization and (iii) will not be eligible for any rate
reduction or exemption under any applicable tax treaty with respect to the 30%
United States withholding tax imposed on distributions to REMIC Residual
Certificateholders that are foreign investors. See, however, "--Foreign
Investors in REMIC Certificates" below. Furthermore, for purposes of the
alternative minimum tax, (i) excess inclusions will not be permitted to be
offset by the alternative tax net operating loss deduction and (ii) alternative
minimum taxable income may not be less than the taxpayer's excess inclusions.
The latter rule has the effect of preventing non-refundable tax credits from
reducing the taxpayer's income tax to an amount lower than the tentative minimum
tax on excess inclusions.
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In the case of any REMIC Residual Certificates held by a real estate
investment trust, the aggregate excess inclusions with respect to such REMIC
Residual Certificates, reduced (but not below zero) by the real estate
investment trust taxable income (within the meaning of Section 857(b)(2) of the
Code, excluding any net capital gain), will be allocated among the shareholders
of such trust in proportion to the dividends received by such shareholders from
such trust, and any amount so allocated will be treated as an excess inclusion
with respect to a REMIC Residual Certificate as if held directly by such
shareholder. Treasury regulations yet to be issued could apply a similar rule to
regulated investment companies, common trust funds and certain cooperatives; the
REMIC Regulations currently do not address this subject.
NONECONOMIC REMIC RESIDUAL CERTIFICATES. Under the REMIC Regulations,
transfers of "noneconomic" REMIC Residual Certificates will be disregarded for
all federal income tax purposes if "a significant purpose of the transfer was to
enable the transferor to impede the assessment or collection of tax". If such
transfer is disregarded, the purported transferor will continue to remain liable
for any taxes due with respect to the income on such "noneconomic" REMIC
Residual Certificate. The REMIC Regulations provide that a REMIC Residual
Certificate is noneconomic unless, based on the Prepayment Assumption and on any
required or permitted clean up calls, or required liquidation provided for in
the REMIC's organizational documents, (1) the present value of the expected
future distributions (discounted using the "applicable Federal rate" for
obligations whose term ends on the close of the last quarter in which excess
inclusions are expected to accrue with respect to the REMIC Residual
Certificate, which rate is computed and published monthly by the IRS) on the
REMIC Residual Certificate equals at least the present value of the expected tax
on the anticipated excess inclusions, and (2) the transferor reasonably expects
that the transferee will receive distributions with respect to the REMIC
Residual Certificate at or after the time the taxes accrue on the anticipated
excess inclusions in an amount sufficient to satisfy the accrued taxes.
Accordingly, all transfers of REMIC Residual Certificates that may constitute
noneconomic residual interests will be subject to certain restrictions under the
terms of the related Pooling and Servicing Agreement that are intended to reduce
the possibility of any such transfer being disregarded. Such restrictions will
require each party to a transfer to provide an affidavit that no purpose of such
transfer is to impede the assessment or collection of tax, including certain
representations as to the financial condition of the prospective transferee, as
to which the transferor is also required to make a reasonable investigation to
determine such transferee's historic payment of its debts and ability to
continue to pay its debts as they come due in the future. Prior to purchasing a
REMIC Residual Certificate, prospective purchasers should consider the
possibility that a purported transfer of such REMIC Residual Certificate by such
a purchaser to another purchaser at some future date may be disregarded in
accordance with the above-described rules which would result in the retention of
tax liability by such purchaser.
The related Prospectus Supplement will disclose whether offered REMIC
Residual Certificates may be considered "noneconomic" residual interests under
the REMIC Regulations; provided, however, that any disclosure that a REMIC
Residual Certificate will not be considered "noneconomic" will be based upon
certain assumptions, and the Depositor will make no representation that a REMIC
Residual Certificate will not be considered "noneconomic" for purposes of the
above-described rules. See "--Foreign Investors in REMIC Certificates--REMIC
Residual Certificates" below for additional restrictions applicable to transfers
of certain REMIC Residual Certificates to foreign persons.
MARK-TO-MARKET RULES. On December 23, 1996, the IRS released final
regulations (the "Mark-to-Market Regulations") relating to the requirement that
a securities dealer mark to market securities held for sale to customers. This
mark-to-market requirement applies to all securities owned by a dealer, except
to the extent that the dealer has specifically identified a security as held for
investment. The Mark-to-Market Regulations provide that, for purposes of this
mark-to-market requirement, a REMIC Residual Certificate is not treated as a
security and thus may not be marked to market.
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POSSIBLE PASS-THROUGH OF MISCELLANEOUS ITEMIZED DEDUCTIONS. Fees and
expenses of a REMIC generally will be allocated to the holders of the related
REMIC Residual Certificates. The applicable Treasury regulations indicate,
however, that in the case of a REMIC that is similar to a single class grantor
trust, all or a portion of such fees and expenses should be allocated to the
holders of the related REMIC Regular Certificates. Unless otherwise stated in
the related Prospectus Supplement, such fees and expenses will be allocated to
holders of the related REMIC Residual Certificates in their entirety and not to
the holders of the related REMIC Regular Certificates.
With respect to REMIC Residual Certificates or REMIC Regular Certificates
the holders of which receive an allocation of fees and expenses in accordance
with the preceding discussion, if any holder thereof is an individual, estate or
trust, or a "pass-through entity" beneficially owned by one or more individuals,
estates or trusts, (i) an amount equal to such individual's, estate's or trust's
share of such fees and expenses will be added to the gross income of such holder
and (ii) such individual's, estate's or trust's share of such fees and expenses
will be treated as a miscellaneous itemized deduction allowable subject to the
limitation of Section 67 of the Code, which permits such deductions only to the
extent they exceed in the aggregate two percent of a taxpayer's adjusted gross
income. In addition, Section 68 of the Code provides that the amount of itemized
deductions otherwise allowable for an individual whose adjusted gross income
exceeds a specified amount will be reduced by the lesser of (i) 3% of the excess
of the individual's adjusted gross income over such amount or (ii) 80% of the
amount of itemized deductions otherwise allowable for the taxable year. The
amount of additional taxable income reportable by REMIC Certificateholders that
are subject to the limitations of either Section 67 or Section 68 of the Code
may be substantial. Furthermore, in determining the alternative minimum taxable
income of such a holder of a REMIC Certificate that is an individual, estate or
trust, or a "pass-through entity" beneficially owned by one or more individuals,
estates or trusts, no deduction will be allowed for such holder's allocable
portion of servicing fees and other miscellaneous itemized deductions of the
REMIC, even though an amount equal to the amount of such fees and other
deductions will be included in such holder's gross income. Accordingly, such
REMIC Certificates may not be appropriate investments for individuals, estates,
or trusts, or pass-through entities beneficially owned by one or more
individuals, estates or trusts. Such prospective investors should consult with
their tax advisors prior to making an investment in such Certificates.
SALES OF REMIC CERTIFICATES. If a REMIC Certificate is sold, the selling
Certificateholder will recognize gain or loss equal to the difference between
the amount realized on the sale and its adjusted basis in the REMIC Certificate.
The adjusted basis of a REMIC Regular Certificate generally will equal the cost
of such REMIC Regular Certificate to such Certificateholder, increased by income
reported by such Certificateholder with respect to such REMIC Regular
Certificate (including original issue discount and market discount income) and
reduced (but not below zero) by distributions on such REMIC Regular Certificate
received by such Certificateholder and by any amortized premium. The adjusted
basis of a REMIC Residual Certificate will be determined as described under
"--Taxation of Owners of REMIC Residual Certificates--Basis Rules, Net Losses
and Distributions". Except as provided in the following four paragraphs, any
such gain or loss will be capital gain or loss, provided such REMIC Certificate
is held as a capital asset (generally, property held for investment) within the
meaning of Section 1221 of the Code. The Code as of the date of this Prospectus
provides for a top marginal tax rate of 39.6% for individuals and a maximum
marginal rate for long term capital gains of individuals of 28%. No such rate
differential exists for corporations. In addition, the distinction between a
capital gain or loss and ordinary income or loss remains relevant for other
purposes.
Gain from the sale of a REMIC Regular Certificate that might otherwise be
capital gain will be treated as ordinary income to the extent such gain does not
exceed the excess, if any, of (i) the amount that would have been includible in
the seller's income with respect to such REMIC Regular Certificate assuming that
income had accrued thereon at a rate equal to 110% of the "applicable Federal
rate" (generally, a rate based on an average of current yields on Treasury
securities having a maturity comparable to that of the Certificate based on the
application of the Prepayment Assumption to such
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Certificate which rate is computed and published monthly by the IRS), determined
as of the date of purchase of such REMIC Regular Certificate, over (ii) the
amount of ordinary income actually includible in the seller's income prior to
such sale. In addition, gain recognized on the sale of a REMIC Regular
Certificate by a seller who purchased such REMIC Regular Certificate at a market
discount will be taxable as ordinary income in an amount not exceeding the
portion of such discount that accrued during the period such REMIC Certificate
was held by such holder, reduced by any market discount included in income under
the rules described above under "--Taxation of Owners of REMIC Regular
Certificates-- Market Discount" and "--Premium".
REMIC Certificates will be "evidences of indebtedness" within the meaning of
Section 582(c)(1) of the Code, so that gain or loss recognized from the sale of
a REMIC Certificate by a bank or thrift institution to which such section
applies will be ordinary income or loss.
Except as may be provided in Treasury regulations yet to be issued, if the
seller of a REMIC Residual Certificate reacquires such REMIC Residual
Certificate, or acquires any other residual interest in a REMIC or any similar
interest in a "taxable mortgage pool" (as defined in Section 7701(i) of the
Code) during the period beginning six months before, and ending six months
after, the date of such sale, such sale will be subject to the "wash sale" rules
of Section 1091 of the Code. In that event, any loss realized by the REMIC
Residual Certificateholder on the sale will not be deductible, but instead will
be added to such REMIC Residual Certificateholder's adjusted basis in the
newly-acquired asset.
PROHIBITED TRANSACTIONS TAX AND OTHER TAXES. The Code imposes a tax on
REMICs equal to 100% of the net income derived from "prohibited transactions" (a
"Prohibited Transactions Tax"). In general, subject to certain specified
exceptions a prohibited transaction means the disposition of a Mortgage Loan,
the receipt of income from a source other than a Mortgage Loan or certain other
permitted investments, the receipt of compensation for services, or gain from
the disposition of an asset purchased with the payments on the Mortgage Loans
for temporary investment pending distribution on the REMIC Certificates. It is
not anticipated that any REMIC will engage in any prohibited transactions in
which it would recognize a material amount of net income.
In addition, certain contributions to a REMIC made after the day on which
the REMIC issues all of its interests could result in the imposition of a tax on
the REMIC equal to 100% of the value of the contributed property (a
"Contributions Tax"). Each Pooling and Servicing Agreement will include
provisions designed to prevent the acceptance of any contributions that would be
subject to such tax.
REMICs also are subject to federal income tax at the highest corporate rate
on "net income from foreclosure property", determined by reference to the rules
applicable to real estate investment trusts. "Net income from foreclosure
property" generally means gain from the sale of a foreclosure property that is
inventory property and gross income from foreclosure property other than
qualifying rents and other qualifying income for a real estate investment trust.
Unless otherwise disclosed in the related Prospectus Supplement, it is not
anticipated that any REMIC will recognize "net income from foreclosure property"
subject to federal income tax.
Unless otherwise disclosed in the related Prospectus Supplement, it is not
anticipated that any material state or local income or franchise tax will be
imposed on any REMIC.
Unless otherwise stated in the related Prospectus Supplement, and to the
extent permitted by then applicable laws, any Prohibited Transactions Tax,
Contributions Tax, tax on "net income from foreclosure property" or state or
local income or franchise tax that may be imposed on the REMIC will be borne by
the related Master Servicer, Special Servicer, Manager or Trustee in any case
out of its own funds, provided that such person has sufficient assets to do so,
and provided further that such tax arises out of a breach of such person's
obligations under the related Pooling and Servicing Agreement and in respect of
compliance with applicable laws and regulations. Any such tax not borne by a
Master Servicer, Special Servicer, Manager or Trustee will be charged against
the related Trust Fund resulting in a reduction in amounts payable to holders of
the related REMIC Certificates.
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TAX AND RESTRICTIONS ON TRANSFERS OF REMIC RESIDUAL CERTIFICATES TO CERTAIN
ORGANIZATIONS. If a REMIC Residual Certificate is transferred to a
"disqualified organization" (as defined below), a tax would be imposed in an
amount (determined under the REMIC Regulations) equal to the product of (i) the
present value (discounted using the "applicable Federal rate" for obligations
whose term ends on the close of the last quarter in which excess inclusions are
expected to accrue with respect to the REMIC Residual Certificate, which rate is
computed and published monthly by the IRS) of the total anticipated excess
inclusions with respect to such REMIC Residual Certificate for periods after the
transfer and (ii) the highest marginal federal income tax rate applicable to
corporations. The anticipated excess inclusions must be determined as of the
date that the REMIC Residual Certificate is transferred and must be based on
events that have occurred up to the time of such transfer, the Prepayment
Assumption and any required or permitted clean up calls or required liquidation
provided for in the REMIC's organizational documents. Such a tax generally would
be imposed on the transferor of the REMIC Residual Certificate, except that
where such transfer is through an agent for a disqualified organization, the tax
would instead be imposed on such agent. However, a transferor of a REMIC
Residual Certificate would in no event be liable for such tax with respect to a
transfer if the transferee furnishes to the transferor an affidavit that the
transferee is not a disqualified organization and, as of the time of the
transfer, the transferor does not have actual knowledge that such affidavit is
false. Moreover, an entity will not qualify as a REMIC unless there are
reasonable arrangements designed to ensure that (i) residual interests in such
entity are not held by disqualified organizations and (ii) information necessary
for the application of the tax described herein will be made available.
Restrictions on the transfer of REMIC Residual Certificates and certain other
provisions that are intended to meet this requirement will be included in each
Pooling and Servicing Agreement, and will be discussed in any Prospectus
Supplement relating to the offering of any REMIC Residual Certificate.
In addition, if a "pass-through entity" (as defined below) includes in
income excess inclusions with respect to a REMIC Residual Certificate, and a
disqualified organization is the record holder of an interest in such entity,
then a tax will be imposed on such entity equal to the product of (i) the amount
of excess inclusions on the REMIC Residual Certificate that are allocable to the
interest in the pass-through entity held by such disqualified organization and
(ii) the highest marginal federal income tax rate imposed on corporations. A
pass-through entity will not be subject to this tax for any period, however, if
each record holder of an interest in such pass-through entity furnishes to such
pass-through entity (i) such holder's social security number and a statement
under penalties of perjury that such social security number is that of the
record holder or (ii) a statement under penalties of perjury that such record
holder is not a disqualified organization.
For these purposes, a "disqualified organization" means (i) the United
States, any State or political subdivision thereof, any foreign government, any
international organization, or any agency or instrumentality of the foregoing
(but would not include instrumentalities described in Section 168(h)(2)(D) of
the Code or the Federal Home Loan Mortgage Corporation), (ii) any organization
(other than a cooperative described in Section 521 of the Code) that is exempt
from federal income tax, unless it is subject to the tax imposed by Section 511
of the Code or (iii) any organization described in Section 1381(a)(2)(C) of the
Code. For these purposes, a "pass-through entity" means any regulated investment
company, real estate investment trust, trust, partnership or certain other
entities described in Section 860E(e)(6) of the Code. In addition, a person
holding an interest in a pass-through entity as a nominee for another person
will, with respect to such interest, be treated as a pass-through entity.
TERMINATION. A REMIC will terminate immediately after the Distribution Date
following receipt by the REMIC of the final payment in respect of the Mortgage
Loans or upon a sale of the REMIC's assets following the adoption by the REMIC
of a plan of complete liquidation. The last distribution on a REMIC Regular
Certificate will be treated as a payment in retirement of a debt instrument. In
the case of a REMIC Residual Certificate, if the last distribution on such REMIC
Residual Certificate is less than the REMIC Residual Certificateholder's
adjusted basis in such Certificate, such REMIC Residual Certificateholder
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should (but may not) be treated as realizing a loss equal to the amount of such
difference, and such loss may be treated as a capital loss.
REPORTING AND OTHER ADMINISTRATIVE MATTERS. Solely for purposes of the
administrative provisions of the Code, the REMIC will be treated as a
partnership and REMIC Residual Certificateholders will be treated as partners.
Unless otherwise stated in the related Prospectus Supplement, the Trustee or the
Master Servicer, which generally will hold at least a nominal amount of REMIC
Residual Certificates, will file REMIC federal income tax returns on behalf of
the related REMIC, and will be designated as and will act as the "tax matters
person" with respect to the REMIC in all respects.
As the tax matters person, the Trustee or the Master Servicer, as the case
may be, subject to certain notice requirements and various restrictions and
limitations, generally will have the authority to act on behalf of the REMIC and
the REMIC Residual Certificateholders in connection with the administrative and
judicial review of items of income, deduction, gain or loss of the REMIC, as
well as the REMIC's classification. REMIC Residual Certificateholders generally
will be required to report such REMIC items consistently with their treatment on
the related REMIC's tax return and may in some circumstances be bound by a
settlement agreement between the Trustee or the Master Servicer, as the case may
be, as tax matters person, and the IRS concerning any such REMIC item.
Adjustments made to the REMIC tax return may require a REMIC Residual
Certificateholder to make corresponding adjustments on its return, and an audit
of the REMIC's tax return, or the adjustments resulting from such an audit,
could result in an audit of a REMIC Residual Certificateholder's return. No
REMIC will be registered as a tax shelter pursuant to Section 6111 of the Code
because it is not anticipated that any REMIC will have a net loss for any of the
first five taxable years of its existence. Any person that holds a REMIC
Residual Certificate as a nominee for another person may be required to furnish
to the related REMIC, in a manner to be provided in Treasury regulations, the
name and address of such person and other information.
Reporting of interest income, including any original issue discount, with
respect to REMIC Regular Certificates is required annually, and may be required
more frequently under Treasury regulations. These information reports generally
are required to be sent to individual holders of REMIC Regular Interests and the
IRS; holders of REMIC Regular Certificates that are corporations, trusts,
securities dealers and certain other non-individuals will be provided interest
and original issue discount income information and the information set forth in
the following paragraph upon request in accordance with the requirements of the
applicable regulations. The information must be provided by the later of 30 days
after the end of the quarter for which the information was requested, or two
weeks after the receipt of the request. The REMIC must also comply with rules
requiring a REMIC Regular Certificate issued with original issue discount to
disclose on its face the amount of original issue discount and the issue date,
and requiring such information to be reported to the IRS. Reporting with respect
to REMIC Residual Certificates, including income, excess inclusions, investment
expenses and relevant information regarding qualification of the REMIC's assets
will be made as required under the Treasury regulations, generally on a
quarterly basis.
As applicable, the REMIC Regular Certificate information reports will
include a statement of the adjusted issue price of the REMIC Regular Certificate
at the beginning of each accrual period. In addition, the reports will include
information required by regulations with respect to computing the accrual of any
market discount. Because exact computation of the accrual of market discount on
a constant yield method would require information relating to the holder's
purchase price that the REMIC may not have, such regulations only require that
information pertaining to the appropriate proportionate method of accruing
market discount be provided. See "--Taxation of Owners of REMIC Regular
Certificates--Market Discount".
Unless otherwise specified in the related Prospectus Supplement, the
responsibility for complying with the foregoing reporting rules will be borne by
either the Trustee or the Master Servicer.
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BACKUP WITHHOLDING WITH RESPECT TO REMIC CERTIFICATES. Payments of interest
and principal, as well as payments of proceeds from the sale of REMIC
Certificates, may be subject to the "backup withholding tax" under Section 3406
of the Code at a rate of 31% if recipients of such payments fail to furnish to
the payor certain information, including their taxpayer identification numbers,
or otherwise fail to establish an exemption from such tax. Any amounts deducted
and withheld from a distribution to a recipient would be allowed as a credit
against such recipient's federal income tax. Furthermore, certain penalties may
be imposed by the IRS on a recipient of payments that is required to supply
information but that does not do so in the proper manner.
FOREIGN INVESTORS IN REMIC CERTIFICATES. A REMIC Regular Certificateholder
that is not a "United States Person" (as defined below) and is not subject to
federal income tax as a result of any direct or indirect connection to the
United States in addition to its ownership of a REMIC Regular Certificate will
not, unless otherwise disclosed in the related Prospectus Supplement, be subject
to United States federal income or withholding tax in respect of a distribution
on a REMIC Regular Certificate, provided that the holder complies to the extent
necessary with certain identification requirements (including delivery of a
statement, signed by the Certificateholder under penalties of perjury,
certifying that such Certificateholder is not a United States Person and
providing the name and address of such Certificateholder). For these purposes,
"UNITED STATES PERSON" means a citizen or resident of the United States, a
corporation, partnership or other entity created or organized in, or under the
laws of, the United States or any political subdivision thereof, or an estate
whose income is subject to United States income tax regardless of its source, or
a trust if a court within the United States is able to exercise primary
supervision over the administration of the trust and one or more United States
fiduciaries have the authority to control all substantial decisions of the
trust. It is possible that the IRS may assert that the foregoing tax exemption
should not apply with respect to a REMIC Regular Certificate held by a REMIC
Residual Certificateholder that owns directly or indirectly a 10% or greater
interest in the REMIC Residual Certificates. If the holder does not qualify for
exemption, distributions of interest, including distributions in respect of
accrued original issue discount, to such holder may be subject to a tax rate of
30%, subject to reduction under any applicable tax treaty.
In addition, the foregoing rules will not apply to exempt a United States
shareholder of a controlled foreign corporation from taxation on such United
States shareholder's allocable portion of the interest income received by such
controlled foreign corporation.
Further, it appears that a REMIC Regular Certificate would not be included
in the estate of a non-resident alien individual and would not be subject to
United States estate taxes. However, Certificateholders who are non-resident
alien individuals should consult their tax advisors concerning this question.
Unless otherwise stated in the related Prospectus Supplement, transfers of
REMIC Residual Certificates to investors that are not United States Persons will
be prohibited under the related Pooling and Servicing Agreement.
GRANTOR TRUST FUNDS
CLASSIFICATION OF GRANTOR TRUST FUNDS. With respect to each series of
Grantor Trust Certificates, counsel to the Depositor will deliver its opinion to
the effect that, assuming compliance with all provisions of the related Pooling
and Servicing Agreement, the related Grantor Trust Fund will be classified as a
grantor trust under subpart E, part I of subchapter J of the Code and not as a
partnership or an association taxable as a corporation. Accordingly, each holder
of a Grantor Trust Certificate generally will be treated as the owner of an
interest in the Mortgage Loans included in the Grantor Trust Fund.
For purposes of the following discussion, a Grantor Trust Certificate
representing an undivided equitable ownership interest in the principal of the
Mortgage Loans constituting the related Grantor Trust Fund, together with
interest thereon at a pass-through rate, will be referred to as a "Grantor Trust
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Fractional Interest Certificate". A Grantor Trust Certificate representing
ownership of all or a portion of the difference between interest paid on the
Mortgage Loans constituting the related Grantor Trust Fund (net of normal
administration fees) and interest paid to the holders of Grantor Trust
Fractional Interest Certificates issued with respect to such Grantor Trust Fund
will be referred to as a "Grantor Trust Strip Certificate". A Grantor Trust
Strip Certificate may also evidence a nominal ownership interest in the
principal of the Mortgage Loans constituting the related Grantor Trust Fund.
TAXATION OF OWNERS OF GRANTOR TRUST FRACTIONAL INTEREST CERTIFICATES.
GENERAL. Holders of a particular series of Grantor Trust Fractional
Interest Certificates generally will be required to report on their federal
income tax returns their shares of the entire income from the Mortgage Loans
(including amounts used to pay reasonable servicing fees and other expenses) and
will be entitled to deduct their shares of any such reasonable servicing fees
and other expenses. Because of stripped interests, market or original issue
discount, or premium, the amount includible in income on account of a Grantor
Trust Fractional Interest Certificate may differ significantly from the amount
distributable thereon representing interest on the Mortgage Loans. Under Section
67 of the Code, an individual, estate or trust holding a Grantor Trust
Fractional Interest Certificate directly or through certain pass-through
entities will be allowed a deduction for such reasonable servicing fees and
expenses only to the extent that the aggregate of such holder's miscellaneous
itemized deductions exceeds two percent of such holder's adjusted gross income.
In addition, Section 68 of the Code provides that the amount of itemized
deductions otherwise allowable for an individual whose adjusted gross income
exceeds a specified amount will be reduced by the lesser of (i) 3% of the excess
of the individual's adjusted gross income over such amount or (ii) 80% of the
amount of itemized deductions otherwise allowable for the taxable year. The
amount of additional taxable income reportable by holders of Grantor Trust
Fractional Interest Certificates who are subject to the limitations of either
Section 67 or Section 68 of the Code may be substantial. Further,
Certificateholders (other than corporations) subject to the alternative minimum
tax may not deduct miscellaneous itemized deductions in determining such
holder's alternative minimum taxable income. Although it is not entirely clear,
it appears that in transactions in which multiple classes of Grantor Trust
Certificates (including Grantor Trust Strip Certificates) are issued, such fees
and expenses should be allocated among the classes of Grantor Trust Certificates
using a method that recognizes that each such class benefits from the related
services. In the absence of statutory or administrative clarification as to the
method to be used, it currently is intended to base information returns or
reports to the IRS and Certificateholders on a method that allocates such
expenses among classes of Grantor Trust Certificates with respect to each period
based on the distributions made to each such class during that period.
The federal income tax treatment of Grantor Trust Fractional Interest
Certificates of any series will depend on whether they are subject to the
"stripped bond" rules of Section 1286 of the Code. Grantor Trust Fractional
Interest Certificates may be subject to those rules if (i) a class of Grantor
Trust Strip Certificates is issued as part of the same series of Certificates or
(ii) the Depositor or any of its affiliates retains (for its own account or for
purposes of resale) a right to receive a specified portion of the interest
payable on a Mortgage Asset. Further, the IRS has ruled that an unreasonably
high servicing fee retained by a seller or servicer will be treated as a
retained ownership interest in mortgages that constitutes a stripped coupon. For
purposes of determining what constitutes reasonable servicing fees for various
types of mortgages the IRS has established certain "safe harbors." The servicing
fees paid with respect to the Mortgage Loans for certain series of Grantor Trust
Certificates may be higher than the "safe harbors" and, accordingly, may not
constitute reasonable servicing compensation. The related Prospectus Supplement
will include information regarding servicing fees paid to a Master Servicer, a
Special Servicer, any Sub-Servicer or their respective affiliates necessary to
determine whether the preceding "safe harbor" rules apply.
IF STRIPPED BOND RULES APPLY. If the stripped bond rules apply, each
Grantor Trust Fractional Interest Certificate will be treated as having been
issued with "original issue discount" within the
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meaning of Section 1273(a) of the Code, subject, however, to the discussion
below regarding the treatment of certain stripped bonds as market discount bonds
and the discussion regarding DE MINIMIS market discount. See "--Taxation of
Owners of Grantor Trust Fractional Interest Certificates--Market Discount"
below. Under the stripped bond rules, the holder of a Grantor Trust Fractional
Interest Certificate (whether a cash or accrual method taxpayer) will be
required to report interest income from its Grantor Trust Fractional Interest
Certificate for each month in an amount equal to the income that accrues on such
Certificate in that month calculated under a constant yield method, in
accordance with the rules of the Code relating to original issue discount.
The original issue discount on a Grantor Trust Fractional Interest
Certificate will be the excess of such Certificate's stated redemption price
over its issue price. The issue price of a Grantor Trust Fractional Interest
Certificate as to any purchaser will be equal to the price paid by such
purchaser of the Grantor Trust Fractional Interest Certificate. The stated
redemption price of a Grantor Trust Fractional Interest Certificate will be the
sum of all payments to be made on such Certificate, other than "qualified stated
interest", if any, as well as such Certificate's share of reasonable servicing
fees and other expenses. See "--Taxation of Owners of Grantor Trust Fractional
Interest Certificates--If Stripped Bond Rules Do Not Apply" for a definition of
"qualified stated interest". In general, the amount of such income that accrues
in any month would equal the product of such holder's adjusted basis in such
Grantor Trust Fractional Interest Certificate at the beginning of such month
(see "--Sales of Grantor Trust Certificates" below) and the yield of such
Grantor Trust Fractional Interest Certificate to such holder. Such yield would
be computed as the rate (compounded based on the regular interval between
payment dates) that, if used to discount the holder's share of future payments
on the Mortgage Loans, would cause the present value of those future payments to
equal the price at which the holder purchased such Certificate. In computing
yield under the stripped bond rules, a Certificateholder's share of future
payments on the Mortgage Loans will not include any payments made in respect of
any ownership interest in the Mortgage Loans retained by the Depositor, a Master
Servicer, a Special Servicer, any Sub-Servicer or their respective affiliates,
but will include such Certificateholder's share of any reasonable servicing fees
and other expenses.
Section 1272(a)(6) of the Code requires (i) the use of a reasonable
prepayment assumption in accruing original issue discount and (ii) adjustments
in the accrual of original issue discount when prepayments do not conform to the
prepayment assumption, with respect to certain categories of debt instruments,
and regulations could be adopted applying those provisions to the Grantor Trust
Fractional Interest Certificates. It is unclear whether those provisions would
be applicable to the Grantor Trust Fractional Interest Certificates or whether
use of a reasonable prepayment assumption may be required or permitted without
reliance on these rules. It is also uncertain, if a prepayment assumption is
used, whether the assumed prepayment rate would be determined based on
conditions at the time of the first sale of the Grantor Trust Fractional
Interest Certificate or, with respect to any holder, at the time of purchase of
the Grantor Trust Fractional Interest Certificate by that holder.
Certificateholders are advised to consult their tax advisors concerning
reporting original issue discount in general and, in particular, whether a
prepayment assumption should be used in reporting original issue discount with
respect to Grantor Trust Fractional Interest Certificates.
In the case of a Grantor Trust Fractional Interest Certificate acquired at a
price equal to the principal amount of the Mortgage Loans allocable to such
Certificate, the use of a prepayment assumption generally would not have any
significant effect on the yield used in calculating accruals of interest income.
In the case, however, of a Grantor Trust Fractional Interest Certificate
acquired at a discount or premium (that is, at a price less than or greater than
such principal amount, respectively), the use of a reasonable prepayment
assumption would increase or decrease such yield, and thus accelerate or
decelerate, respectively, the reporting of income.
If a prepayment assumption is not used, then when a Mortgage Loan prepays in
full, the holder of a Grantor Trust Fractional Interest Certificate acquired at
a discount or a premium generally will recognize
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ordinary income or loss equal to the difference between the portion of the
prepaid principal amount of the Mortgage Loan that is allocable to such
Certificate and the portion of the adjusted basis of such Certificate that is
allocable to such Certificateholder's interest in the Mortgage Loan. If a
prepayment assumption is used, it appears that no separate item of income or
loss should be recognized upon a prepayment. Instead, a prepayment should be
treated as a partial payment of the stated redemption price of the Grantor Trust
Fractional Interest Certificate and accounted for under a method similar to that
described for taking account of original issue discount on REMIC Regular
Certificates. See "-- REMICs--Taxation of Owners of REMIC Regular
Certificates--Original Issue Discount". It is unclear whether any other
adjustments would be required to reflect differences between an assumed prepay-
ment rate and the actual rate of prepayments.
In the absence of statutory or administrative clarification, it is currently
intended to base information reports or returns to the IRS and
Certificateholders in transactions subject to the stripped bond rules on a
prepayment assumption that will be disclosed in the related Prospectus
Supplement and on a constant yield computed using a representative initial
offering price for each class of Certificates. However, neither the Depositor
nor any other person will make any representation that the Mortgage Loans will
in fact prepay at a rate conforming to such prepayment assumption or any other
rate and Certificateholders should bear in mind that the use of a representative
initial offering price will mean that such information returns or reports, even
if otherwise accepted as accurate by the IRS, will in any event be accurate only
as to the initial Certificateholders of each series who bought at that price.
Under Treasury regulation Section 1.1286-1(b), certain stripped bonds are to
be treated as market discount bonds and, accordingly, any purchaser of such a
bond is to account for any discount on the bond as market discount rather than
original issue discount. This treatment only applies, however, if immediately
after the most recent disposition of the bond by a person stripping one or more
coupons from the bond and disposing of the bond or coupon (i) there is no
original issue discount (or only a DE MINIMIS amount of original issue discount)
or (ii) the annual stated rate of interest payable on the original bond is no
more than one percentage point lower than the gross interest rate payable on the
original mortgage loan (before subtracting any servicing fee or any stripped
coupon). If interest payable on a Grantor Trust Fractional Interest Certificate
is more than one percentage point lower than the gross interest rate payable on
the Mortgage Loans, the related Prospectus Supplement will disclose that fact.
If the original issue discount or market discount on a Grantor Trust Fractional
Interest Certificate determined under the stripped bond rules is less than 0.25%
of the stated redemption price multiplied by the weighted average maturity of
the Mortgage Loans, then such original issue discount or market discount will be
considered to be DE MINIMIS. Original issue discount or market discount of only
a DE MINIMIS amount will be included in income in the same manner as DE MINIMIS
original issue and market discount described in "--Taxation of Owners of Grantor
Trust Fractional Interest Certificates--If Stripped Bond Rules Do Not Apply" and
"--Market Discount" below.
IF STRIPPED BOND RULES DO NOT APPLY. Subject to the discussion below on
original issue discount, if the stripped bond rules do not apply to a Grantor
Trust Fractional Interest Certificate, the Certificateholder will be required to
report its share of the interest income on the Mortgage Loans in accordance with
such Certificateholder's normal method of accounting. The original issue
discount rules will apply, even if the stripped bond rules do not apply, to a
Grantor Trust Fractional Interest Certificate to the extent it evidences an
interest in Mortgage Loans issued with original issue discount.
The original issue discount, if any, on the Mortgage Loans will equal the
difference between the stated redemption price of such Mortgage Loans and their
issue price. For a definition of "stated redemption price," see "--Taxation of
Owners of REMIC Regular Certificates--Original Issue Discount" above. In
general, the issue price of a Mortgage Loan will be the amount received by the
borrower from the lender under the terms of the Mortgage Loan, less any "points"
paid by the borrower, and the stated redemption price of a Mortgage Loan will
equal its principal amount, unless the Mortgage Loan provides for an initial
"teaser," or below-market interest rate. The determination as to whether
original issue
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discount will be considered to be DE MINIMIS will be calculated using the same
test as in the REMIC discussion. See "--Taxation of Owners of REMIC Regular
Certificates--Original Issue Discount" above.
In the case of Mortgage Loans bearing adjustable or variable interest rates,
the related Prospectus Supplement will describe the manner in which such rules
will be applied with respect to those Mortgage Loans by the Trustee or Master
Servicer, as applicable, in preparing information returns to the
Certificateholders and the IRS.
If original issue discount is in excess of a DE MINIMIS amount, all original
issue discount with respect to a Mortgage Loan will be required to be accrued
and reported in income each month, based on a constant yield. The OID
Regulations suggest that no prepayment assumption is appropriate in computing
the yield on prepayable obligations issued with original issue discount. In the
absence of statutory or administrative clarification, it currently is not
intended to base information reports or returns to the IRS and
Certificateholders on the use of a prepayment assumption in transactions not
subject to the stripped bond rules. However, Section 1272(a)(6) of the Code may
require that a prepayment assumption be made in computing yield with respect to
all mortgage-backed securities. Certificateholders are advised to consult their
own tax advisors concerning whether a prepayment assumption should be used in
reporting original issue discount with respect to Grantor Trust Fractional
Interest Certificates. Certificateholders should refer to the related Prospectus
Supplement with respect to each series to determine whether and in what manner
the original issue discount rules will apply to Mortgage Loans in such series.
A purchaser of a Grantor Trust Fractional Interest Certificate that
purchases such Grantor Trust Fractional Interest Certificate at a cost less than
such Certificate's allocable portion of the aggregate remaining stated
redemption price of the Mortgage Loans held in the related Trust Fund will also
be required to include in gross income such Certificate's daily portions of any
original issue discount with respect to such Mortgage Loans. However, each such
daily portion will be reduced, if the cost of such Grantor Trust Fractional
Interest Certificate to such purchaser is in excess of such Certificate's
allocable portion of the aggregate "adjusted issue prices" of the Mortgage Loans
held in the related Trust Fund, approximately in proportion to the ratio such
excess bears to such Certificate's allocable portion of the aggregate original
issue discount remaining to be accrued on such Mortgage Loans. The adjusted
issue price of a Mortgage Loan on any given day equals the sum of (i) the
adjusted issue price (or, in the case of the first accrual period, the issue
price) of such Mortgage Loan at the beginning of the accrual period that
includes such day and (ii) the daily portions of original issue discount for all
days during such accrual period prior to such day. The adjusted issue price of a
Mortgage Loan at the beginning of any accrual period will equal the issue price
of such Mortgage Loan, increased by the aggregate amount of original issue
discount with respect to such Mortgage Loan that accrued in prior accrual
periods, and reduced by the amount of any payments made on such Mortgage Loan in
prior accrual periods of amounts included in its stated redemption price.
Unless otherwise provided in the related Prospectus Supplement, the Trustee
or Master Servicer, as applicable, will provide to any holder of a Grantor Trust
Fractional Interest Certificate such information as such holder may reasonably
request from time to time with respect to original issue discount accruing on
Grantor Trust Fractional Interest Certificates. See "--Grantor Trust Reporting"
below.
MARKET DISCOUNT. If the stripped bond rules do not apply to a Grantor Trust
Fractional Interest Certificate, a Certificateholder may be subject to the
market discount rules of Sections 1276 through 1278 of the Code to the extent an
interest in a Mortgage Loan is considered to have been purchased at a "market
discount", that is, in the case of a Mortgage Loan issued without original issue
discount, at a purchase price less than its remaining stated redemption price
(as defined above), or in the case of a Mortgage Loan issued with original issue
discount, at a purchase price less than its adjusted issue price (as defined
above). If market discount is in excess of a DE MINIMIS amount (as described
below), the holder generally will be required to include in income in each month
the amount of such discount that has accrued (under the rules described in the
next paragraph) through such month that has not
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previously been included in income, but limited, in the case of the portion of
such discount that is allocable to any Mortgage Loan, to the payment of stated
redemption price on such Mortgage Loan that is received by (or, in the case of
accrual basis Certificateholders, due to) the Trust Fund in that month. A
Certificateholder may elect to include market discount in income currently as it
accrues (under a constant yield method based on the yield of the Certificate to
such holder) rather than including it on a deferred basis in accordance with the
foregoing under rules similar to those described in "--Taxation of Owners of
REMIC Regular Interests--Market Discount" above.
Section 1276(b)(3) of the Code authorized the Treasury Department to issue
regulations providing for the method for accruing market discount on debt
instruments, the principal of which is payable in more than one installment.
Until such time as regulations are issued by the Treasury Department, certain
rules described in the Committee Report apply. Under those rules, in each
accrual period market discount on the Mortgage Loans should accrue, at the
holder's option: (i) on the basis of a constant yield method, (ii) in the case
of a Mortgage Loan issued without original issue discount, in an amount that
bears the same ratio to the total remaining market discount as the stated
interest paid in the accrual period bears to the total stated interest remaining
to be paid on the Mortgage Loan as of the beginning of the accrual period, or
(iii) in the case of a Mortgage Loan issued with original issue discount, in an
amount that bears the same ratio to the total remaining market discount as the
original issue discount accrued in the accrual period bears to the total
original issue discount remaining at the beginning of the accrual period. The
prepayment assumption, if any, used in calculating the accrual of original issue
discount is to be used in calculating the accrual of market discount. The effect
of using a prepayment assumption could be to accelerate the reporting of such
discount income. Because the regulations referred to in this paragraph have not
been issued, it is not possible to predict what effect such regulations might
have on the tax treatment of a Mortgage Loan purchased at a discount in the
secondary market.
Because the Mortgage Loans will provide for periodic payments of stated
redemption price, such discount may be required to be included in income at a
rate that is not significantly slower than the rate at which such discount would
be included in income if it were original issue discount.
Market discount with respect to Mortgage Loans may be considered to be DE
MINIMIS and, if so, will be includible in income under de minimis rules similar
to those described in "--REMICs--Taxation of Owners of REMIC Regular
Certificates--Original Issue Discount" above within the exception that it is
less likely that a prepayment assumption will be used for purposes of such rules
with respect to the Mortgage Loans.
Further, under the rules described in "--REMICs--Taxation of Owners of REMIC
Regular Certificates--Market Discount", any discount that is not original issue
discount and exceeds a DE MINIMIS amount may require the deferral of interest
expense deductions attributable to accrued market discount not yet includible in
income, unless an election has been made to report market discount currently as
it accrues.
PREMIUM. If a Certificateholder is treated as acquiring the underlying
Mortgage Loans at a premium, that is, at a price in excess of their remaining
stated redemption price, such Certificateholder may elect under Section 171 of
the Code to amortize using a constant yield method the portion of such premium
allocable to Mortgage Loans originated after September 27, 1985. Amortizable
premium is treated as an offset to interest income on the related debt
instrument, rather than as a separate interest deduction. However, premium
allocable to Mortgage Loans originated before September 28, 1985 or to Mortgage
Loans for which an amortization election is not made, should be allocated among
the payments of stated redemption price on the Mortgage Loan and be allowed as a
deduction as such payments are made (or, for a Certificateholder using the
accrual method of accounting, when such payments of stated redemption price are
due).
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It is unclear whether a prepayment assumption should be used in computing
amortization of premium allowable under Section 171 of the Code. If premium is
not subject to amortization using a prepayment assumption and a Mortgage Loan
prepays in full, the holder of a Grantor Trust Fractional Interest Certificate
acquired at a premium should recognize a loss equal to the difference between
the portion of the prepaid principal amount of the Mortgage Loan that is
allocable to the Certificate and the portion of the adjusted basis of the
Certificate that is allocable to the Mortgage Loan. If a prepayment assumption
is used to amortize such premium, it appears that such a loss would be
unavailable. Instead, if a prepayment assumption is used, a prepayment should be
treated as a partial payment of the stated redemption price of the Grantor Trust
Fractional Interest Certificate and accounted for under a method similar to that
described for taking account of original issue discount on REMIC Regular
Certificates. See "--REMICs--Taxation of Owners of REMIC Regular
Certificates--Original Issue Discount". It is unclear whether any other
adjustments would be required to reflect differences between the prepayment
assumption and the actual rate of prepayments.
TAXATION OF OWNERS OF GRANTOR TRUST STRIP CERTIFICATES. The "stripped
coupon" rules of Section 1286 of the Code will apply to the Grantor Trust Strip
Certificates. Except as described above in "--Taxation of Owners of Grantor
Trust Fractional Interest Certificates--If Stripped Bond Rules Apply", no
regulations or published rulings under Section 1286 of the Code have been issued
and some uncertainty exists as to how it will be applied to securities such as
the Grantor Trust Strip Certificates. Accordingly, holders of Grantor Trust
Strip Certificates should consult their tax advisors concerning the method to be
used in reporting income or loss with respect to such Certificates.
The OID Regulations do not apply to "stripped coupons", although they
provide general guidance as to how the original issue discount sections of the
Code will be applied. In addition, the discussion below is subject to the
discussion under "--Possible Application of Proposed Contingent Payment Rules"
below and assumes that the holder of a Grantor Trust Strip Certificate will not
own any Grantor Trust Fractional Interest Certificates.
Under the stripped coupon rules, it appears that original issue discount
will be required to be accrued in each month on the Grantor Trust Strip
Certificates based on a constant yield method. In effect, each holder of Grantor
Trust Strip Certificates would include as interest income in each month an
amount equal to the product of such holder's adjusted basis in such Grantor
Trust Strip Certificate at the beginning of such month and the yield of such
Grantor Trust Strip Certificate to such holder. Such yield would be calculated
based on the price paid for that Grantor Trust Strip Certificate by its holder
and the payments remaining to be made thereon at the time of the purchase, plus
an allocable portion of the servicing fees and expenses to be paid with respect
to the Mortgage Loans. See "--Taxation of Owners of Grantor Trust Fractional
Interest Certificates--If Stripped Bond Rules Apply" above.
As noted above, Section 1272(a)(6) of the Code requires that a prepayment
assumption be used in computing the accrual of original issue discount with
respect to certain categories of debt instruments, and that adjustments be made
in the amount and rate of accrual of such discount when prepayments do not
conform to such prepayment assumption. Regulations could be adopted applying
those provisions to the Grantor Trust Strip Certificates. It is unclear whether
those provisions would be applicable to the Grantor Trust Strip Certificates or
whether use of a prepayment assumption may be required or permitted in the
absence of such regulations. It is also uncertain, if a prepayment assumption is
used, whether the assumed prepayment rate would be determined based on
conditions at the time of the first sale of the Grantor Trust Strip Certificate
or, with respect to any subsequent holder, at the time of purchase of the
Grantor Trust Strip Certificate by that holder.
The accrual of income on the Grantor Trust Strip Certificates will be
significantly slower if a prepayment assumption is permitted to be made than if
yield is computed assuming no prepayments. In the absence of statutory or
administrative clarification, it currently is intended to base information
returns or reports to the IRS and Certificateholders on the Prepayment
Assumption disclosed in the related Prospectus Supplement and on a constant
yield computed using a representative initial offering price for
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each class of Certificates. However, neither the Depositor nor any other person
will make any representation that the Mortgage Loans will in fact prepay at a
rate conforming to the Prepayment Assumption or at any other rate and
Certificateholders should bear in mind that the use of a representative initial
offering price will mean that such information returns or reports, even if
otherwise accepted as accurate by the IRS, will in any event be accurate only as
to the initial Certificateholders of each series who bought at that price.
Prospective purchasers of the Grantor Trust Strip Certificates should consult
their tax advisors regarding the use of the Prepayment Assumption.
It is unclear under what circumstances, if any, the prepayment of a Mortgage
Loan will give rise to a loss to the holder of a Grantor Trust Strip
Certificate. If a Grantor Trust Strip Certificate is treated as a single
instrument (rather than an interest in discrete mortgage loans) and the effect
of prepayments is taken into account in computing yield with respect to such
Grantor Trust Strip Certificate, it appears that no loss may be available as a
result of any particular prepayment unless prepayments occur at a rate faster
than the Prepayment Assumption. However, if a Grantor Trust Strip Certificate is
treated as an interest in discrete Mortgage Loans, or if the Prepayment
Assumption is not used, then when a Mortgage Loan is prepaid, the holder of a
Grantor Trust Strip Certificate should be able to recognize a loss equal to the
portion of the adjusted issue price of the Grantor Trust Strip Certificate that
is allocable to such Mortgage Loan.
POSSIBLE APPLICATION OF PROPOSED CONTINGENT PAYMENT RULES. The coupon
stripping rules' general treatment of stripped coupons is to regard them as
newly issued debt instruments in the hands of each purchaser. To the extent that
payments on the Grantor Trust Strip Certificates would cease if the Mortgage
Loans were prepaid in full, the Grantor Trust Strip Certificates could be
considered to be debt instruments providing for contingent payments. Under the
OID Regulations, debt instruments providing for contingent payments are not
subject to the same rules as debt instruments providing for noncontingent
payments. Treasury regulations were promulgated on June 11, 1996 regarding
contingent payment debt instruments, but it appears that the Grantor Trust Strip
Certificates, due to their similarity to other mortgage-backed securities (such
as REMIC regular interests) that are expressly exempted from the application of
such proposed regulations, may be excepted from such proposed regulations. Like
the OID Regulations, such proposed regulations do not specifically address
securities, such as the Grantor Trust Strip Certificates, that are subject to
the stripped bond rules of Section 1286 of the Code.
If the contingent payment rules under the proposed regulations were to
apply, the holder of a Grantor Trust Strip Certificate would be required to
apply the "noncontingent bond method." Under the "noncontingent bond method,"
the issuer of a Grantor Trust Strip Certificate determines a projected payment
schedule on which interest will accrue. Holders of Grantor Trust Strip
Certificates are bound by the issuer's projected payment schedule. The projected
payment schedule consists of all noncontingent payments and a projected amount
for each contingent payment based on the "comparable yield" (as described below)
of the Grantor Trust Strip Certificate. The projected amount of each payment is
determined so that the payment schedule reflects the "comparable yield." The
projected amount of each payment must reasonably reflect the relative expected
values of the payments to be received by the holders of a Grantor Trust Strip
Certificate in the manner prescribed by the regulations. The "comparable yield"
referred to above is generally the yield at which the issuer would issue a fixed
rate debt instrument with terms and conditions similar to those of the Grantor
Trust Strip Certificates, including the level of subordination, term, timing of
payments and general market conditions. The holder of a Grantor Trust Strip
Certificate would be required to include as interest income in each month the
adjusted issue price of the Grantor Trust Strip Certificate at the beginning of
the period multiplied by the projected yield.
Assuming that a prepayment assumption were used, if the proposed regulations
or their principles were applied to Grantor Trust Strip Certificates, the amount
of income reported with respect thereto would be substantially similar to that
described under "Taxation of Owners of Grantor Trust Strip Certificates."
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Certificateholders should consult their tax advisors concerning the possible
application of the contingent payment rules to the Grantor Trust Strip
Certificates.
SALES OF GRANTOR TRUST CERTIFICATES. Any gain or loss, equal to the
difference between the amount realized on the sale or exchange of a Grantor
Trust Certificate and its adjusted basis, recognized on such sale or exchange of
a Grantor Trust Certificate by an investor who holds such Grantor Trust
Certificate as a capital asset, will be capital gain or loss, except to the
extent of accrued and unrecognized market discount, which will be treated as
ordinary income, and (in the case of banks and other financial institutions)
except as provided under Section 582(c) of the Code. The adjusted basis of a
Grantor Trust Certificate generally will equal its cost, increased by any income
reported by the seller (including original issue discount and market discount
income) and reduced (but not below zero) by any previously reported losses, any
amortized premium and by any distributions with respect to such Grantor Trust
Certificate. The Code as of the date of this Prospectus provides a top marginal
tax rate of 39.6% for individuals and a maximum marginal rate for long-term
capital gains of individuals of 28%. No such rate differential exists for
corporations. In addition, the distinction between a capital gain or loss and
ordinary income or loss remains relevant for other purposes.
Gain or loss from the sale of a Grantor Trust Certificate may be partially
or wholly ordinary and not capital in certain circumstances. Gain attributable
to accrued and unrecognized market discount will be treated as ordinary income,
as will gain or loss recognized by banks and other financial institutions
subject to Section 582(c) of the Code. Furthermore, a portion of any gain that
might otherwise be capital gain may be treated as ordinary income to the extent
that the Grantor Trust Certificate is held as part of a "conversion transaction"
within the meaning of Section 1258 of the Code. A conversion transaction
generally is one in which the taxpayer has taken two or more positions in the
same or similar property that reduce or eliminate market risk, if substantially
all of the taxpayer's return is attributable to the time value of the taxpayer's
net investment in such transaction. The amount of gain realized in a conversion
transaction that is recharacterized as ordinary income generally will not exceed
the amount of interest that would have accrued on the taxpayer's net investment
at 120% of the appropriate "applicable Federal rate" (which rate is computed and
published monthly by the IRS) at the time the taxpayer enters into the
conversion transaction, subject to appropriate reduction for prior inclusion of
interest and other ordinary income items from the transaction.
Finally, a taxpayer may elect to have net capital gain taxed at ordinary
income rates rather than capital gains rates in order to include such net
capital gain in total net investment income for that taxable year, for purposes
of the rule that limits the deduction of interest on indebtedness incurred to
purchase or carry property held for investment to a taxpayer's net investment
income.
GRANTOR TRUST REPORTING. Unless otherwise provided in the related
Prospectus Supplement, the Trustee or Master Servicer, as applicable, will
furnish to each holder of a Grantor Trust Certificate with each distribution a
statement setting forth the amount of such distribution allocable to principal
on the underlying Mortgage Loans and to interest thereon at the related
Pass-Through Rate. In addition, the Trustee or Master Servicer, as applicable,
will furnish, within a reasonable time after the end of each calendar year, to
each holder of a Grantor Trust Certificate who was such a holder at any time
during such year, information regarding the amount of servicing compensation
received by the Master Servicer, the Special Servicer or any Sub-Servicer, and
such other customary factual information as the Depositor or the reporting party
deems necessary or desirable to enable holders of Grantor Trust Certificates to
prepare their tax returns and will furnish comparable information to the IRS as
and when required by law to do so. Because the rules for accruing discount and
amortizing premium with respect to the Grantor Trust Certificates are uncertain
in various respects, there is no assurance the IRS will agree with the Trustee's
or Master Servicer's, as the case may be, information reports of such items of
income and expense. Moreover, such information reports, even if otherwise
accepted as accurate by the IRS, will in any event be accurate only as to the
initial Certificateholders that bought their Certificates at the representative
initial offering price used in preparing such reports.
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BACKUP WITHHOLDING. In general, the rules described in "--REMICs--Backup
Withholding with Respect to REMIC Certificates" will also apply to Grantor Trust
Certificates.
FOREIGN INVESTORS. In general, the discussion with respect to REMIC Regular
Certificates in "-- REMICs--Foreign Investors in REMIC Certificates" applies to
Grantor Trust Certificates except that Grantor Trust Certificates will, unless
otherwise disclosed in the related Prospectus Supplement, be eligible for
exemption from U.S. withholding tax, subject to the conditions described in such
discussion, only to the extent the related Mortgage Loans were originated after
July 18, 1984.
To the extent that interest on a Grantor Trust Certificate would be exempt
under Sections 871(h)(1) and 881(c) of the Code from United States withholding
tax, and the Grantor Trust Certificate is not held in connection with a
Certificateholder's trade or business in the United States, such Grantor Trust
Certificate will not be subject to United States estate taxes in the estate of a
non-resident alien individual.
STATE AND OTHER TAX CONSEQUENCES
In addition to the federal income tax consequences described in "Certain
Federal Income Tax Consequences," potential investors should consider the state
and local tax consequences of the acquisition, ownership, and disposition of the
Offered Certificates. State tax law may differ substantially from the
corresponding federal law, and the discussion above does not purport to describe
any aspect of the income tax laws of any state or other jurisdiction. Therefore,
potential investors should consult their tax advisors with respect to the
various tax consequences of investments in the Offered Certificates.
ERISA CONSIDERATIONS
GENERAL
ERISA and the Code impose certain requirements on employee benefit plans and
on certain other retirement plans and arrangements, including individual
retirement accounts and annuities, Keogh plans and collective investment funds
and separate accounts (and, as applicable, insurance company general accounts)
in which such plans, accounts or arrangements are invested that are subject to
the fiduciary responsibility provisions of ERISA and/or Section 4975 of the Code
("Plans") and on persons who are fiduciaries with respect to such Plans in
connection with the investment of Plan assets. Certain employee benefit plans,
such as governmental plans (as defined in ERISA Section 3(32)), and, if no
election has been made under Section 410(d) of the Code, church plans (as
defined in Section 3(33) of ERISA) are not subject to ERISA requirements.
Accordingly, assets of such plans may be invested in Offered Certificates
without regard to the ERISA considerations described below, subject to the
provisions of other applicable federal and state law. Any such plan which is
qualified and exempt from taxation under Sections 401(a) and 501(a) of the Code,
however, is subject to the prohibited transaction rules set forth in Section 503
of the Code.
ERISA generally imposes on Plan fiduciaries certain general fiduciary
requirements, including those of investment prudence and diversification and the
requirement that a Plan's investments be made in accordance with the documents
governing the Plan. In addition, Section 406 of ERISA and Section 4975 of the
Code prohibit a broad range of transactions involving assets of a Plan and
persons ("Parties in Interest") who have certain specified relationships to the
Plan, unless a statutory or administrative exemption is available. Unless an
exemption is available, a Plan's purchase or holding of a Certificate may
constitute or result in a prohibited transaction if any of the Depositor, the
Trustee, the Master Servicer, the Manager, the Special Servicer or a
Sub-Servicer is a Party in Interest with respect to that Plan. Certain Parties
in Interest that participate in a prohibited transaction may be subject to an
excise tax imposed pursuant to Section 4975 of the Code or a penalty imposed
pursuant to Section 502(i) of ERISA, unless a statutory or administrative
exemption is available. These prohibited transactions generally are set forth in
Section 406 of ERISA and Section 4975 of the Code.
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PLAN ASSET REGULATIONS
A Plan's investment in Offered Certificates may cause the underlying
Mortgage Loans, MBS and other assets included in a related Trust Fund to be
deemed assets of such Plan. A regulation of the United States Department of
Labor ("DOL") at 29 C.F.R. Section 2510.3-101 provides that when a Plan acquires
an equity interest in an entity, the Plan's assets include both such equity
interest and an undivided interest in each of the underlying assets of the
entity, unless certain exceptions not applicable here apply, or unless the
equity participation in the entity by "benefit plan investors" (i.e., Plans and
certain employee benefit plans not subject to ERISA) is not "significant," both
as defined therein. Equity participation in a Trust Fund will be significant on
any date if immediately after the most recent acquisition of any Certificate,
25% or more of any class of Certificates is held by benefit plan investors.
Any person who has discretionary authority or control respecting the
management or disposition of Plan assets, and any person who provides investment
advice with respect to such assets for a fee, is a fiduciary of the investing
Plan. If the Mortgage Loans, MBS and other assets included in a Trust Fund
constitute Plan assets, then any party exercising management or discretionary
control regarding those assets, such as the Master Servicer, the Special
Servicer, any Sub-Servicer, the Manager, the Trustee, the obligor under any
credit enhancement mechanism, or certain affiliates thereof may be deemed to be
a Plan "fiduciary" and thus subject to the fiduciary responsibility provisions
of ERISA and the prohibited transaction provisions of ERISA and Section 4975 of
the Code with respect to the investing Plan. In addition, if the Mortgage Loans,
MBS and other assets included in a Trust Fund constitute Plan assets, the
purchase of Certificates by, on behalf of or with assets of a Plan, as well as
the operation of the Trust Fund, may constitute or involve a prohibited
transaction under ERISA or the Code.
PROHIBITED TRANSACTION EXEMPTION
On March 29, 1994, the DOL issued an individual exemption (the "Exemption"),
to certain of the Depositor's affiliates, which generally exempts from the
application of the prohibited transaction provisions of Section 406 of ERISA,
and the excise taxes imposed on such prohibited transactions pursuant to
Sections 4975(a) and (b) of the Code, certain transactions, among others,
relating to the servicing and operation of mortgage pools and the purchase, sale
and holding of mortgage pass-through certificates issued by a trust as to which
(i) the Depositor is the sponsor if any entity which has received from the DOL
an individual prohibited transaction exemption which is similar to the Exemption
is the sole underwriter, or manager or co-manager of the underwriting syndicate
or a seller or placement agent, or (ii) the Depositor or an affiliate is the
Underwriter (as hereinafter defined), provided that certain conditions set forth
in the Exemption are satisfied. For purposes of this Section "ERISA
Considerations," the term "Underwriter" shall include (a) the Depositor and
certain of its affiliates, (b) any person directly or indirectly, through one or
more intermediaries, controlling, controlled by or under common control with the
Depositor and certain of its affiliates, (c) any member of the underwriting
syndicate or selling group of which a person described in (a) or (b) is a
manager or co-manager with respect to a class of Certificates, or (d) any entity
which has received an exemption from the DOL relating to Certificates which is
similar to the Exemption.
The Exemption sets forth six general conditions which must be satisfied for
a transaction involving the purchase, sale and holding of Offered Certificates
to be eligible for exemptive relief thereunder. First, the acquisition of
Offered Certificates by or with assets of a Plan must be on terms that are at
least as favorable to the Plan as they would be in an arm's-length transaction
with an unrelated party. Second, the Exemption only applies to Offered
Certificates evidencing rights and interests that are not subordinated to the
rights and interests evidenced by the other Certificates of the same trust.
Third, the Offered Certificates at the time of acquisition by or with assets of
a Plan must be rated in one of the three highest generic rating categories by
Standard & Poor's Ratings Services, Moody's Investors Service, Inc., Duff &
Phelps or Fitch Investors Service, L.P. Fourth, the Trustee cannot be an
affiliate of any member of the "Restricted Group" which consists of any
Underwriter, the Depositor, the Master Servicer, any Special
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Servicer, any Sub-Servicer, any obligor under any credit enhancement mechanism,
any Manager and any mortgagor with respect to Trust Assets constituting more
than 5% of the aggregate unamortized principal balance of the Trust Assets in
the related Trust Fund as of the date of initial issuance of the Certificates.
Fifth, the sum of all payments made to and retained by the Underwriters must
represent not more than reasonable compensation for underwriting the
Certificates; the sum of all payments made to and retained by the Depositor
pursuant to the assignment of the Trust Assets to the related Trust Fund must
represent not more than the fair market value of such obligations; and the sum
of all payments made to and retained by the Master Servicer, any Special
Servicer, any Sub-Servicer and any Manager must represent not more than
reasonable compensation for such person's services under the related Pooling and
Servicing Agreement and reimbursement of such person's reasonable expenses in
connection therewith. Sixth, the Exemption states that the investing Plan or
Plan asset investor must be an accredited investor as defined in Rule 501(a)(1)
of Regulation D of the Securities and Exchange Commission under the Securities
Act of 1933, as amended.
The Exemption also requires that each Trust Fund meet the following
requirements: (i) the Trust Fund must consist solely of assets of the type that
have been included in other investment pools; (ii) certificates in such other
investment pools must have been rated in one of the three highest categories of
one of the rating agencies specified above for at least one year prior to the
acquisition of Certificates by or with assets of a Plan; and (iii) certificates
in such other investment pools must have been purchased by investors other than
Plans for at least one year prior to any acquisition of Certificates by or with
assets of a Plan.
It is not clear whether certain Certificates that may be offered hereunder
would constitute "certificates" for purposes of the Exemption, including but not
limited to, (i) Certificates evidencing an interest in certificates insured or
guaranteed by FAMC, (ii) Certificates evidencing an interest in Mortgage Loans
secured by liens on real estate projects under construction, (iii) Certificates
evidencing an interest in a Trust Fund including equity participations, (iv)
Certificates evidencing an interest in a Trust Fund including Cash Flow
Agreements, or (v) subordinated Classes of Certificates (collectively,
"Non-Exempt Certificates"). In promulgating the Exemption, the DOL did not have
under consideration interests in pools of the exact nature described in this
paragraph and accordingly, unless otherwise provided in the related Prospectus
Supplement, Plans and persons investing assets of Plans should not purchase Non-
Exempt Certificates based solely upon the Exemption.
A fiduciary or other investor of Plan assets contemplating purchasing an
Offered Certificate must make its own determination that the general conditions
set forth above will be satisfied with respect to such Certificate.
If the general conditions of the Exemption are satisfied, the Exemption may
provide an exemption from the restrictions imposed by Sections 406(a) and 407 of
ERISA, and the excise taxes imposed by Sections 4975(a) and (b) of the Code by
reason of Sections 4975(c)(1)(A) through (D) of the Code, in connection with the
direct or indirect sale, exchange, transfer, holding or the direct or indirect
acquisition or disposition in the secondary market of Offered Certificates by or
with assets of a Plan. However, no exemption is provided from the restrictions
of Sections 406(a)(1)(E) and 406(a)(2) of ERISA for the acquisition or holding
of an Offered Certificate on behalf of an "Excluded Plan" by any person who has
discretionary authority or renders investment advice with respect to assets of
such Excluded Plan. For purposes of the Certificates, an Excluded Plan is a Plan
sponsored by any member of the Restricted Group.
If certain specific conditions of the Exemption are also satisfied, the
Exemption may provide an exemption from the restrictions imposed by Sections
406(b)(1) and (b)(2) of ERISA, and the taxes imposed by Sections 4975(a) and (b)
of the Code by reason of Section 4975(c)(1)(E) of the Code, in connection with
(1) the direct or indirect sale, exchange or transfer of Certificates in the
initial issuance of Certificates between the Depositor or an Underwriter and a
Plan when the person who has discretionary
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authority or renders investment advice with respect to the investment of the
relevant Plan assets in the Certificates is (a) a mortgagor with respect to 5%
or less of the fair market value of the Trust Assets or (b) an affiliate of such
a person, (2) the direct or indirect acquisition or disposition in the secondary
market of Certificates by or with assets of a Plan and (3) the holding of
Certificates by or with assets of a Plan.
Further, if certain specific conditions of the Exemption are satisfied, the
Exemption may provide an exemption from the restrictions imposed by Sections
406(a), 406(b) and 407 of ERISA, and the taxes imposed by Sections 4975(a) and
(b) of the Code by reason of Section 4975(c) of the Code, for transactions in
connection with the servicing, management and operation of the pools of Mortgage
Assets. The Depositor expects that the specific conditions of the Exemption
required for this purpose will be satisfied with respect to the Certificates so
that the Exemption would provide an exemption from the restrictions imposed by
Sections 406(a) and (b) of ERISA, the excise taxes imposed by Sections 4975(a)
and (b) of the Code by reason of Section 4975(c) of the Code), for transactions
in connection with the servicing, management and operation of the pools of
Mortgage Assets, provided that the general conditions of the Exemption are
satisfied.
The Exemption also may provide an exemption from the restrictions imposed by
Sections 406(a) and 407(a) of ERISA, and the taxes imposed by Sections 4975(a)
and (b) of the Code by reason of Sections 4975(c)(1)(A) through (D) of the Code,
if such restrictions are deemed to otherwise apply merely because a person is
deemed to be a "party in interest" (within the meaning of Section 3(14) of
ERISA) or a "disqualified person" (within the meaning of Section 4975(e)(2) of
the Code) with respect to an investing Plan by virtue of providing services to
the Plan (or by virtue of having certain specified relationships to such a
person) solely as a result of the Plan's ownership of Certificates.
Before purchasing an Offered Certificate, a fiduciary or other investor of
Plan assets should itself confirm (a) that the Certificates constitute
"certificates" for purposes of the Exemption and (b) that the specific and
general conditions set forth in the Exemption and the other requirements set
forth in the Exemption would be satisfied. In addition to making its own
determination as to the availability of the exemptive relief provided in the
Exemption, the fiduciary or other Plan investor should consider its general
fiduciary obligations under ERISA in determining whether to purchase any Offered
Certificates with assets of a Plan. Such fiduciary or other Plan investor should
consider the availability of other class exemptions granted by the DOL, which
provide relief from certain of the prohibited transaction provisions of ERISA
and the related excise tax provisions of Section 4975 of the Code, including
Sections I and III of Prohibited Transaction Class Exemption ("PTCE") 95-60,
regarding transactions by insurance company general accounts. The Prospectus
Supplement with respect to a series of Certificates may contain additional
information regarding the application of the Exemption, PTCE 95-60 or any other
DOL exemption, with respect to the Certificates offered thereby.
Any fiduciary or other Plan investor that proposes to purchase Offered
Certificates on behalf of or with assets of a Plan should consult with its
counsel with respect to the potential applicability of ERISA and the Code to
such investment and the availability of the Exemption or any other prohibited
transaction exemption in connection therewith. There can be no assurance that
any of these exemptions will apply with respect to any particular Plan's or
other Plan asset investor's investment in the Certificates or, even if an
exemption were deemed to apply, that any exemption would apply to all prohibited
transactions that may occur in connection with such an investment.
INSURANCE COMPANY GENERAL ACCOUNTS
In addition to any exemption that may be available under PTCE 95-60 for the
purchase and holding of the Certificates by an insurance company general
account, the Small Business Job Protection Act of 1996 added a new Section
401(c) to ERISA, which provides certain exemptive relief from the provisions of
Part 4 of Title I of ERISA and Section 4975 of the Code, including the
prohibited transaction restrictions
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imposed by ERISA and the related excise taxes imposed by Section 4975 of the
Code, for transactions involving an insurance company general account. Pursuant
to Section 401(c) of ERISA, the DOL is required to issue final regulations (the
"401(c) Regulations") no later than December 31, 1997 which are to provide
guidance for the purpose of determining, in cases where insurance policies and
annuity contracts supported by an insurer's general account are issued to or for
the benefit of a Plan on or before December 31, 1998, which general account
assets constitute Plan assets. Section 401(c) of ERISA generally provides that,
until the date which is 18 months after the 401(c) Regulations become final, no
person shall be subject to liability under Part 4 of Title I of ERISA and
Section 4975 of the Code on the basis of a claim that the assets of an insurance
company general account constitute Plan assets, unless (i) as otherwise provided
by the Secretary of labor in the 401(c) Regulations to prevent avoidance of the
regulations or (ii) an action is brought by the Secretary of Labor for certain
breaches of fiduciary duty which would also constitute a violation of federal or
state criminal law. Any assets of an insurance company general account which
support insurance policies or annuity contracts issued to a Plan after December
31, 1998 or issued to Plans on or before December 31, 1998 for which the
insurance company does not comply with the 401(c) Regulations may be treated as
Plan assets. In addition, because Section 401(c) does not relate to insurance
company accounts, separate account assets are still treated as Plan assets of
any Plan invested in such separate account. Insurance companies contemplating
the investment of general account assets in the Certificates should consult with
their legal counsel with respect to the applicability of Sections I and III of
PTCE 95-60 and Section 401(c) of ERISA, including the general account's ability
to continue to hold the Certificates after the date which is 18 months after the
date the 401(c) Regulations become final.
REPRESENTATION FROM INVESTING PLANS
It is not clear whether the exemptive relief afforded by the Exemption will
be applicable to the purchase, sale or holding of any class of Non-Exempt
Certificates. To the extent that Offered Certificates are Non-Exempt
Certificates, transfers of such Certificates to a Plan, to a trustee or other
person acting on behalf of any Plan, or to any other person using Plan assets to
effect such acquisition will not be registered by the Trustee unless the
transferee provides the Depositor, the Trustee and the Master Servicer with an
opinion of counsel satisfactory to the Depositor, the Trustee and the Master
Servicer, which opinion will not be at the expense of the Depositor, the Trustee
or the Master Servicer, that the purchase of such Certificates by or on behalf
of, or with asset of, any Plan is permissible under applicable law, will not
constitute or result in any non-exempt prohibited transaction under ERISA or
Section 4975 of the Code and will not subject the Depositor, the Trustee or the
Master Servicer to any obligation in addition to those undertaken in the Pooling
and Servicing Agreement. In lieu of such opinion of counsel, the prospective
transferee of any class of Non-Exempt Certificates may provide a certification
of facts substantially to the effect that the purchase of such Certificates by
or on behalf of, or with asset of, any Plan is permissible under applicable law,
will not constitute or result in a non-exempt prohibited transaction under ERISA
or Section 4975 of the Code, will not subject the Depositor, the Trustee or the
Master Servicer to any obligation in addition to those undertaken in the Pooling
and Servicing Agreement, and the following conditions are met: (a) the source of
funds used to purchase such Certificates is an "insurance company general
account" (as such term is defined in PTCE 95-60 and (b) the conditions set forth
in Sections I and III of PTCE 95-60 have been satisfied as of the date of the
acquisition of such Certificates.
TAX EXEMPT INVESTORS
A Plan that is exempt from federal income taxation pursuant to Section 501
of the Code (a "Tax Exempt Investor") nonetheless will be subject to federal
income taxation to the extent that its income is "unrelated business taxable
income" ("UBTI") within the meaning of Section 512 of the Code. All "excess
inclusions" of a REMIC allocated to a REMIC Residual Certificate held by a
Tax-Exempt Investor
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will be considered UBTI and thus will be subject to federal income tax. See
"Certain Federal Income Tax Consequences--Taxation of Owners of REMIC Residual
Certificates--Excess Inclusions."
Such fiduciary or other Plan investor should consider the availability of
other class exemptions granted by the DOL, which provide relief from certain of
the prohibited transaction provisions of ERISA and the related excise tax
provisions of Section 4975 of the Code, including Sections I and III of
Prohibited Transaction Class Exemption ("PTCE") 95-60, regarding transactions by
insurance company general accounts. The Prospectus Supplement with respect to a
series of Certificates may contain additional information regarding the
application of the Exemption, PTCE 95-60 or any other DOL exemption, with
respect to the Certificates offered thereby.
LEGAL INVESTMENT
If so specified in the related Prospectus Supplement, the Offered
Certificates will constitute "mortgage related securities" for purposes of
SMMEA. Accordingly, investors whose investment authority is subject to legal
restrictions should consult their legal advisors to determine whether and to
what extent the Offered Certificates constitute legal investments for them.
Generally, only classes of Offered Certificates that (i) are rated in one of
the two highest rating categories by one or more Rating Agencies and (ii) are
part of a series evidencing interests in a Trust Fund consisting of loans
secured by a single parcel of real estate upon which is located a dwelling or
mixed residential and commercial structure, such as certain Multifamily Loans,
and originated by types of Originators specified in SMMEA, will be "mortgage
related securities" for purposes of SMMEA. "Mortgage related securities" are
legal investments to the same extent that, under applicable law, obligations
issued by or guaranteed as to principal and interest by the United States or any
agency or instrumentality thereof constitute legal investments for persons,
trusts, corporations, partnerships, associations, business trusts and business
entities (including depository institutions, insurance companies and pension
funds created pursuant to or existing under the laws of the United States or of
any state, the authorized investments of which are subject to state regulation).
Under SMMEA, if a state enacted legislation prior to October 3, 1991 that
specifically limits the legal investment authority of any such entities with
respect to "mortgage related securities", Offered Certificates would constitute
legal investments for entities subject to such legislation only to the extent
provided in such legislation.
SMMEA also amended the legal investment authority of federally chartered
depository institutions as follows: federal savings and loan associations and
federal savings banks may invest in, sell or otherwise deal with "mortgage
related securities" without limitation as to the percentage of their assets
represented thereby, federal credit unions may invest in such securities, and
national banks may purchase such securities for their own account without regard
to the limitations generally applicable to investment securities set forth in 12
U.S.C. 24 (Seventh), subject in each case to such regulations as the applicable
federal regulatory authority may prescribe.
Upon the issuance of final implementing regulations under the Riegle
Community Development and Regulatory Improvement Act of 1994 and subject to any
limitations such regulations may impose, a modification of the definition of
"mortgage related securities" will become effective to expand the types of loans
to which such securities may relate to include loans secured by "one or more
parcels of real estate upon which is located one or more commercial structures".
In addition, the related legislative history states that this expanded
definition includes multifamily residential loans secured by more than one
parcel of real estate upon which is located more than one structure. Until
September 23, 2001 any state may enact legislation limiting the extent to which
"mortgage related securities" under this expanded definition would constitute
legal investments under that state's laws.
The Federal Financial Institutions Examination Council has issued a
supervisory policy statement (the "Policy Statement") applicable to all
depository institutions, setting forth guidelines for and significant
restrictions on investments in "high-risk mortgage securities". The Policy
Statement has been
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<PAGE>
adopted by the Federal Reserve Board, the Office of the Comptroller of the
Currency, the FDIC and the OTS. The Policy Statement generally indicates that a
mortgage derivative product will be deemed to be high risk if it exhibits
greater price volatility than a standard fixed rate thirty-year mortgage
security. According to the Policy Statement, prior to purchase, a depository
institution will be required to determine whether a mortgage derivative product
that it is considering acquiring is high-risk, and if so that the proposed
acquisition would reduce the institution's overall interest rate risk. Reliance
on analysis and documentation obtained from a securities dealer or other outside
party without internal analysis by the institution would be unacceptable. There
can be no assurance as to which classes of Certificates, including Offered
Certificates, will be treated as high-risk under the Policy Statement.
The predecessor to the Office of Thrift Supervision (the "OTS") issued a
bulletin, entitled, "Mortgage Derivative Products and Mortgage Swaps", which is
applicable to thrift institutions regulated by the OTS. The bulletin established
guidelines for the investment by savings institutions in certain "high-risk"
mortgage derivative securities and limitations on the use of such securities by
insolvent, undercapitalized or otherwise "troubled" institutions. According to
the bulletin, such "high-risk" mortgage derivative securities include securities
having certain specified characteristics, which may include certain classes of
Offered Certificates. In addition, the National Credit Union Administration has
issued regulations governing federal credit union investments which prohibit
investment in certain specified types of securities, which may include certain
classes of Offered Certificates. Similar policy statements have been issued by
regulators having jurisdiction over other types of depository institutions.
There may be other restrictions on the ability of certain investors either
to purchase certain classes of Offered Certificates or to purchase any class of
Offered Certificates representing more than a specified percentage of the
investor's assets. The Depositor will make no representations as to the proper
characterization of any class of Offered Certificates for legal investment or
other purposes, or as to the ability of particular investors to purchase any
class of Offered Certificates under applicable legal investment restrictions.
These uncertainties may adversely affect the liquidity of any class of Offered
Certificates. Accordingly, all investors whose investment activities are subject
to legal investment laws and regulations, regulatory capital requirements or
review by regulatory authorities should consult with their legal advisors in
determining whether and to what extent the Offered Certificates of any class
constitute legal investments or are subject to investment, capital or other
restrictions.
USE OF PROCEEDS
The net proceeds to be received from the sale of the Certificates of any
series will be applied by the Depositor to the purchase of Trust Assets or will
be used by the Depositor for general corporate purposes. The Depositor expects
to sell the Certificates from time to time, but the timing and amount of
offerings of Certificates will depend on a number of factors, including the
volume of Mortgage Assets acquired by the Depositor, prevailing interest rates,
availability of funds and general market conditions.
METHOD OF DISTRIBUTION
The Certificates offered hereby and by the related Prospectus Supplements
will be offered in series through one or more of the methods described below.
The Prospectus Supplement prepared for each series will describe the method of
offering being utilized for that series and will state the net proceeds to the
Depositor from such sale.
The Depositor intends that Offered Certificates will be offered through the
following methods from time to time and that offerings may be made concurrently
through more than one of these methods or that an offering of the Offered
Certificates of a particular series may be made through a combination of two or
more of these methods. Such methods are as follows:
1. By negotiated firm commitment or best efforts underwriting and
public re-offering by underwriters;
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<PAGE>
2. By placements by the Depositor with institutional investors through
dealers; and
3. By direct placements by the Depositor with institutional investors.
In addition, if specified in the related Prospectus Supplement, the Offered
Certificates of a series may be offered in whole or in part to the seller of the
related Mortgage Assets that would comprise the Trust Fund for such
Certificates.
If underwriters are used in a sale of any Offered Certificates (other than
in connection with an underwriting on a best efforts basis), such Certificates
will be acquired by the underwriters for their own account and may be resold
from time to time in one or more transactions, including negotiated
transactions, at fixed public offering prices or at varying prices to be
determined at the time of sale or at the time of commitment therefor. Such
underwriters may be broker-dealers affiliated with the Depositor whose
identities and relationships to the Depositor will be as set forth in the
related Prospectus Supplement. The managing underwriter or underwriters with
respect to the offer and sale of Offered Certificates of a particular series
will be set forth on the cover of the Prospectus Supplement relating to such
series and the members of the underwriting syndicate, if any, will be named in
such Prospectus Supplement.
In connection with the sale of Offered Certificates, underwriters may
receive compensation from the Depositor or from purchasers of the Offered
Certificates in the form of discounts, concessions or commissions. Underwriters
and dealers participating in the distribution of the Offered Certificates may be
deemed to be underwriters in connection with such Certificates, and any
discounts or commissions received by them from the Depositor and any profit on
the resale of Offered Certificates by them may be deemed to be underwriting
discounts and commissions under the Securities Act of 1933, as amended.
It is anticipated that the underwriting agreement pertaining to the sale of
the Offered Certificates of any series will provide that the obligations of the
underwriters will be subject to certain conditions precedent, that the
underwriters will be obligated to purchase all such Certificates if any are
purchased (other than in connection with an underwriting on a best efforts
basis) and that, in limited circumstances, the Depositor will indemnify the
several underwriters and the underwriters will indemnify the Depositor against
certain civil liabilities, including liabilities under the Securities Act of
1933, as amended, or will contribute to payments required to be made in respect
thereof.
The Prospectus Supplement with respect to any series offered by placements
through dealers will contain information regarding the nature of such offering
and any agreements to be entered into between the Depositor and purchasers of
Offered Certificates of such series.
The Depositor anticipates that the Certificates offered hereby will be sold
primarily to institutional investors. Purchasers of Offered Certificates,
including dealers, may, depending on the facts and circumstances of such
purchases, be deemed to be "underwriters" within the meaning of the Securities
Act of 1933, as amended, in connection with reoffers and sales by them of
Offered Certificates. Holders of Offered Certificates should consult with their
legal advisors in this regard prior to any such reoffer or sale.
LEGAL MATTERS
Unless otherwise specified in the related Prospectus Supplement, certain
legal matters in connection with the Certificates of each series, including
certain federal income tax consequences, will be passed upon for the Depositor
by Mayer, Brown & Platt, Chicago, Illinois, Thacher Proffitt & Wood, New York,
New York or Orrick, Herrington & Sutcliffe LLP, New York, New York.
94
<PAGE>
FINANCIAL INFORMATION
A new Trust Fund will be formed with respect to each series of Certificates,
and no Trust Fund will engage in any business activities or have any assets or
obligations prior to the issuance of the related series of Certificates.
Accordingly, no financial statements with respect to any Trust Fund will be
included in this Prospectus or in the related Prospectus Supplement. The
Depositor has determined that its financial statements will not be material to
the offering of any Offered Certificates.
RATING
It is a condition to the issuance of any class of Offered Certificates that
they shall have been rated not lower than investment grade, that is, in one of
the four highest rating categories, by at least one Rating Agency.
Ratings on mortgage pass-through certificates address the likelihood of
receipt by the holders thereof of all collections on the underlying mortgage
assets to which such holders are entitled. These ratings address the structural,
legal and issuer-related aspects associated with such certificates, the nature
of the underlying mortgage assets and the credit quality of the guarantor, if
any. Ratings on mortgage pass-through certificates do not represent any
assessment of the likelihood of principal prepayments by borrowers or of the
degree by which such prepayments might differ from those originally anticipated.
As a result, certificateholders might suffer a lower than anticipated yield,
and, in addition, holders of stripped interest certificates in extreme cases
might fail to recoup their initial investments. Furthermore, ratings on mortgage
pass-through certificates do not address the price of such certificates or the
suitability of such certificates to the investor.
A security rating is not a recommendation to buy, sell or hold securities
and may be subject to revision or withdrawal at any time by the assigning rating
organization. Each security rating should be evaluated independently of any
other security rating.
95
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INDEX OF PRINCIPAL TERMS
401(c) Regulations..............................................................
91
Accrual Certificates............................................................
9
Accrued Certificate Interest....................................................
29
Act.............................................................................
60
Annual Debt Service.............................................................
18
ARM Loans.......................................................................
20
Available Distribution Amount...................................................
28
Book-Entry Certificates.........................................................
28
Cash Flow Agreement.............................................................
10
CERCLA..........................................................................
59
Certain Federal Income Tax Consequences.........................................
11
Certain Legal Aspects of Mortgage Loans.........................................
14
Certificate Account.............................................................
21
Certificate Balance.............................................................
8
Certificate Owner...............................................................
34
Certificateholder...............................................................
35
Certificates....................................................................
Cover
Closing Date....................................................................
65
Code............................................................................
11
Commercial Properties...........................................................
17
Commission......................................................................
3
Committee Report................................................................
64
Companion Class.................................................................
31
Condemnation Proceeds...........................................................
42
Contributions Tax...............................................................
75
Controlled Amortization Class...................................................
30
Cooperatives....................................................................
17
CPR.............................................................................
25
Credit Support..................................................................
10
Cut-Off Date....................................................................
30
Debt Service Coverage Ratio.....................................................
18
Definitive Certificates.........................................................
28
Depositor.......................................................................
Cover
Determination Date..............................................................
23
Direct Participants.............................................................
34
Distribution Date...............................................................
9
Distribution Date Statement.....................................................
32
DOL.............................................................................
88
DTC.............................................................................
28
Due Dates.......................................................................
19
Due Period......................................................................
23
Equity Participation............................................................
20
ERISA...........................................................................
11
ERISA Considerations............................................................
88
Excess Funds....................................................................
27
Exemption.......................................................................
88
FAMC............................................................................
20
FHLMC...........................................................................
20
FNMA............................................................................
20
96
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Garn Act........................................................................
61
GMACCM..........................................................................
5
Grantor Trust Fractional Interest Certificate...................................
79
Grantor Trust Strip Certificate.................................................
79
Indirect Participants...........................................................
34
Insurance Proceeds..............................................................
42
IRS.............................................................................
44
Issue Premium...................................................................
71
Letter of Credit Bank...........................................................
53
Liquidation Proceeds............................................................
42
Loan-to-Value Ratio.............................................................
19
Lock-Out Date...................................................................
20
Lock-Out Period.................................................................
20
Manager.........................................................................
6
Mark-to-Market Regulations......................................................
73
Master Servicer.................................................................
5
MBS.............................................................................
Cover
MBS Administrator...............................................................
5
MBS Agreement...................................................................
21
MBS Issuer......................................................................
21
MBS Servicer....................................................................
21
MBS Trustee.....................................................................
21
Mortgage Asset Pool.............................................................
Cover
Mortgage Asset Seller...........................................................
16
Mortgage Assets.................................................................
Cover
Mortgage Derivative Products and Mortgage Swaps.................................
93
Mortgage Loan...................................................................
54
Mortgage Notes..................................................................
17
Mortgage Rate...................................................................
6
Mortgage Related Securities.....................................................
12
Mortgaged Properties............................................................
17
Mortgages.......................................................................
17
Multifamily Properties..........................................................
17
Net income from foreclosure property............................................
75
Net Leases......................................................................
18
Non-Exempt Certificates.........................................................
89
Nonrecoverable Advance..........................................................
31
Notional Amount.................................................................
8
Offered Certificates............................................................
Cover
OID Regulations.................................................................
63
Originator......................................................................
17
OTS.............................................................................
94
Participants....................................................................
34
Parties in Interest.............................................................
87
Pass-Through Rate...............................................................
8
Percentage Interest.............................................................
29
Permitted Investments...........................................................
41
Plans...........................................................................
87
Policy Statement................................................................
93
Pooling And Servicing Agreement.................................................
7
Prepayment Assumption...........................................................
64
97
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Prepayment Interest Shortfall...................................................
23
Prepayment Premium..............................................................
20
Prohibited Transactions Tax.....................................................
75
Prospectus Supplement...........................................................
Cover
PTCE............................................................................
90
Purchase Price..................................................................
37
Qualified stated interest.......................................................
65
Rating Agency...................................................................
12
RCRA............................................................................
60
Record Date.....................................................................
29
Related Proceeds................................................................
31
Relief Act......................................................................
62
REMIC...........................................................................
2
REMIC Certificates..............................................................
63
REMIC Provisions................................................................
63
REMIC Regular Certificates......................................................
11
REMIC Regulations...............................................................
63
REMIC Residual Certificates.....................................................
11
REO Property....................................................................
40
Restricted Group................................................................
88
Risk Factors....................................................................
Cover
Senior Certificates.............................................................
7
Senior Liens....................................................................
17
Servicer........................................................................
5
SMMEA...........................................................................
12
SPA.............................................................................
25
Special Servicer................................................................
5
Stripped Interest Certificates..................................................
7
Stripped Principal Certificates.................................................
7
Sub-Servicer....................................................................
40
Sub-Servicing Agreement.........................................................
40
Subordinate Certificates........................................................
7
Tax Exempt Investor.............................................................
91
The Depositor...................................................................
36
Tiered REMICs...................................................................
64
Title V.........................................................................
62
Trust Assets....................................................................
3
Trust Fund......................................................................
Cover
Trustee.........................................................................
5
UBTI............................................................................
91
UCC.............................................................................
55
Underwriter.....................................................................
88
Underwritten Cash Flow..........................................................
18
United States Person............................................................
78,
Value...........................................................................
19
Warranting Party................................................................
38
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<PAGE>
This diskette contains a spreadsheet file in read-only format that can be
put on a user-specified hard drive or network drive. This file is
"GMAC98C2.xls". "GMAC98C2.xls" is a Microsoft Excel(1), Version 5.0 spreadsheet.
The file provides, in electronic format, certain loan level information shown in
ANNEX A of the Prospectus Supplement.
Open the file as you would normally open any spreadsheet in Microsoft Excel.
After the file is opened, a securities law legend will be displayed. READ THE
LEGEND CAREFULLY. To view the ANNEX A data, see the worksheet labeled "Annex A."
- ------------------------
(1) Microsoft Excel is a registered trademarks of Microsoft Corporation .
<PAGE>
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NO DEALER, SALESMAN OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS NOT CONTAINED IN THIS PROSPECTUS
SUPPLEMENT AND THE PROSPECTUS AND, IF GIVEN OR MADE, SUCH INFORMATION OR
REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE
DEPOSITOR OR BY THE UNDERWRITERS. THIS PROSPECTUS SUPPLEMENT AND THE PROSPECTUS
DO NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, THE
SECURITIES OFFERED HEREBY TO ANYONE IN ANY JURISDICTION IN WHICH THE PERSON
MAKING SUCH OFFER OR SOLICITATION IS NOT QUALIFIED TO DO SO OR TO ANYONE TO WHOM
IT IS UNLAWFUL TO MAKE ANY SUCH OFFER OR SOLICITATION. NEITHER THE DELIVERY OF
THIS PROSPECTUS SUPPLEMENT AND THE PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL,
UNDER ANY CIRCUMSTANCES, CREATE AN IMPLICATION THAT INFORMATION HEREIN OR
THEREIN IS CORRECT AS OF ANY TIME SINCE THE DATE OF THIS PROSPECTUS
TABLE OF CONTENTS
PROSPECTUS SUPPLEMENT
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Transaction Overview...................................................... S-6
Summary................................................................... S-8
Risk Factors.............................................................. S-22
Description of the Mortgage Asset Pool.................................... S-33
Servicing of the Mortgage Loans........................................... S-57
Description of the Certificates........................................... S-66
Yield and Maturity Considerations......................................... S-83
Certain Federal Income Tax Consequences................................... S-93
Method of Distribution.................................................... S-95
Legal Matters............................................................. S-96
Ratings................................................................... S-97
Legal Investment.......................................................... S-98
ERISA Considerations...................................................... S-98
Index of Principal Terms.................................................. S-99
Annex A................................................................... A-1
Annex B................................................................... B-1
Annex C................................................................... C-1
Annex D................................................................... D-1
PROSPECTUS
Prospectus Supplement..................................................... 3
Available Information..................................................... 3
Incorporation of Certain Information by Reference......................... 4
Summary of Prospectus..................................................... 5
Risk Factors.............................................................. 13
Description of the Trust Funds............................................ 16
Yield and Maturity Considerations......................................... 22
The Depositor............................................................. 27
GMAC Commercial Mortgage Corporation...................................... 27
Description of the Certificates........................................... 28
The Pooling and Servicing Agreements...................................... 36
Description of Credit Support............................................. 52
Certain Legal Aspects of Mortgage Loans................................... 54
Certain Federal Income Tax Consequences................................... 63
State and Other Tax Consequences.......................................... 87
ERISA Considerations...................................................... 87
Legal Investment.......................................................... 92
Use of Proceeds........................................................... 93
Method of Distribution.................................................... 93
Legal Matters............................................................. 94
Financial Information..................................................... 95
Rating.................................................................... 95
</TABLE>
___________
(APPROXIMATE)
GMAC COMMERCIAL
MORTGAGE SECURITIES, INC.
MORTGAGE PASS-THROUGH
CERTIFICATES, SERIES 1998-C2
------------------------------
PROSPECTUS SUPPLEMENT
------------------------------
LEHMAN BROTHERS
DEUTSCHE BANK SECURITIES
August , 1998
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