-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MidRXR936YkGOFt2xOXe+SMIeYDxm2fzvEE+fjPtTQ9SKlOcwyP0pP9ySA8cjaM0 BL0z8SRL5Nr2THfIIMlFwQ== 0001271505-04-000017.txt : 20040820 0001271505-04-000017.hdr.sgml : 20040820 20040820150135 ACCESSION NUMBER: 0001271505-04-000017 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040731 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040820 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FRANKLIN AUTO TRUST 2003-2 CENTRAL INDEX KEY: 0001271505 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-106297-01 FILM NUMBER: 04988778 BUSINESS ADDRESS: STREET 1: 47 WEST 200 SOUTH STREET 2: SUITE 500 CITY: SALT LAKE CITY STATE: UT ZIP: 84101 MAIL ADDRESS: STREET 1: 47 WEST 200 SOUTH STE 500 CITY: SALT LAKE CITY STATE: UT ZIP: 84101 8-K 1 form8k_jul04llc.txt FRANKLIN AUTO TRUST 2003-2 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 20, 2004 (August 15, 2004) FRANKLIN AUTO TRUST 2003-2 (Exact name of registrant as specified in its charter) DELAWARE 333-106297 94-3301790 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Nos.) Identification Number) 47 WEST 200 SOUTH, SUITE 500, SALT LAKE CITY, UTAH 84101 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (801) 238-6700 - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events and Regulation FD Disclosure. The Monthly Servicing Report relating to the Franklin Auto Trust 2003-2 for the Collection Period ended July 31, 2004 is attached hereto as Exhibit 19.1 and incorporated herein by this reference. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (c) Exhibit Exhibit 19.1 - Franklin Auto Trust 2003-2 Monthly Servicing Report for the Collection Period ending July 31, 2004 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on the date indicated. FRANKLIN AUTO TRUST 2003-2 (Registrant) By: Franklin Capital Corporation Servicer of the Trust Date: August 20, 2004 /s/ Harold E. Miller, Jr. ------------------------- HAROLD E. MILLER, JR. President Exhibits Exhibit 19.1 - Franklin Auto Trust 2003-2 Monthly Servicing Report for the Collection Period ending July 31, 2004. EX-19 2 exh19_1.txt EXH 19-1 MONTHLY SERVICING REPORT FOR JULY 2004 EXHIBIT 19.1 ------------ FRANKLIN AUTO TRUST 2003-2 MONTHLY SERVICING REPORT COLLECTION PERIOD: JULY 2004 DISTRIBUTION DATE: AUGUST 15, 2004 NUMBER OF DAYS IN DISTRIBUTION PERIOD: 30 SECTION I. ORIGINAL DEAL PARAMETERS
A. ORIGINAL PORTFOLIO PRINCIPLE WEIGHTED AVERAGE NUMBER OF PRINCIPAL COUPON ORIGINAL TERM REMAINING TERM SEASONING CONTRACTS BALANCE (WAC) (MONTHS) (MONTHS) (MONTHS) ----------------------------------------------------------------------------------------------- i. Prime Loans 6,050 114,302,198.29 6.71% 67.60 65.84 1.76 ii. Non-Prime Loans 3,576 63,406,985.80 11.63% 67.19 65.42 1.77 iii. Sub-Prime Loans 176 2,315,816.03 18.41% 61.00 59.07 1.93 iv. Pre-funding account 45,000,000.00 v. Total Loans 9,802 225,025,000.12 8.60% 67.37 65.61 1.76
B. BONDS ISSUED ORIGINAL PRINCIPAL LEGAL FINAL BALANCE COUPON MATURITY CUSIP ------------------------------------------------------------------------------- i. Class A-1 Notes 25,000,000.00 1.14% November 15, 2004 35242RAY0 ii. Class A-2 Notes 79,000,000.00 1.61% January 15,2007 35242RAZ7 iii. Class A-3 Notes 41,000,000.00 2.31% January 15, 2008 35242RBA1 iv. Class A-4 Notes 80,000,000.00 3.13% November 15, 2011 35242RBB9
C. SPREAD ACCOUNT i. Initial Cash Deposit 0.00 ii. Spread Account Floor Amount 2,250,250.00 iii. Specified Spread Account Amount 5.25% of Outstanding Pool Balance iv. Maximum Spread Account Amount 10% of Outstanding Pool Balance v. Initial Payment Provider Commitment 7,313,312.50
SECTION II. DEAL STATUS AS OF PREVIOUS DISTRIBUTION DATE
A. PORTFOLIO PRINCIPLE WEIGHTED AVERAGE NUMBER OF PRINCIPAL COUPON ORIGINAL TERM REMAINING TERM SEASONING CONTRACTS BALANCE (WAC) (MONTHS) (MONTHS) (MONTHS) ------------------------------------------------------------------------------------------ i. Prime Loans 6,697 115,408,699.69 6.70% 67.64 59.38 8.26 ii. Non-Prime Loans 3,826 63,075,379.68 11.51% 67.53 59.44 8.09 iii. Sub-Prime Loans 185 2,262,903.43 18.32% 61.01 52.82 8.19 iv. Pre-Funding Account 0.00 v. Total Loans 10,708 180,746,982.80 8.53% 67.52 59.32 8.20
B. BONDS OUTSTANDING UNPAID INTEREST PRINCIPAL BALANCE SHORTFALL AMOUNT ----------------------------------- i. Class A-1 Notes 0.00 0.00 ii. Class A-2 Notes 59,721,982.80 0.00 iii. Class A-3 Notes 41,000,000,00 0.00 iv. Class A-4 Notes 80,000,000.00 0.00
C. SPREAD ACCOUNT i. Spread Account Cash Balance 2,250,250.00 ii. Payment Provider Commitment 7,238,966.60 D. SHORTFALL AMOUNTS i. Base Servicing Fee Shortfall 0.00 ii. Surety Fee Shortfall 0.00 iii. Unreimbursed Surety Draws 0.00 iv. Unreimbursed Insurer Optional Deposit 0.00 v. Additional Servicing Fee Shortfall 0.00 SECTION II. DEAL STATUS AS OF PREVIOUS DISTRIBUTION DATE E. DELINQUENCIES IN PERIOD
30-59 DAYS 60-89 DAYS 90-119 DAYS 120+ DAYS REPO IN CHARGE OFFS IN INVENTORY PERIOD ------------------------------------------------------------------------------------------------ PRINCIPAL BALANCE i. Prime Loans 213,123.10 162,111.03 19,474.60 119,397.30 113,021.47 170,919.47 ii. Non-Prime Loans 681,823.20 203,340.19 0.00 166,839.05 226,622.86 96,149.67 iii. Sub-Prime Loans 54,490.27 10,775.25 0.00 0.00 10,775.25 43,089.23 iv. Total Loans 949,436.57 376,226.47 19,474.60 286,236.35 350,419.58 310,158.37
30-59 DAYS 60-89 DAYS 90-119 DAYS 120+ DAYS REPO IN CHARGE OFFS IN INVENTORY PERIOD ------------------------------------------------------------------------------------------------ NUMBER OF CONTRACTS i. Prime Loans 8 7 4 5 6 7 ii. Non-Prime Loans 42 13 0 10 13 8 iii. Sub-Prime Loans 4 1 0 0 1 3 iv. Total Loans 54 21 4 15 20 18
PRINCIPAL BALANCE AS A % OF 30-59 DAYS 60-89 DAYS 90-119 DAYS 120+ DAYS REPO IN CHARGE OFFS IN INVENTORY PERIOD ------------------------------------------------------------------------------------------------ PREVIOUS BALANCE i. Prime Loans 0.18% 0.14% 0.02% 0.10% 0.10% 0.15% ii. Non-Prime Loans 1.08% 0.32% 0.00% 0.26% 0.36% 0.15% iii. Sub-Prime Loans 2.41% 0.48% 0.00% 0.00% 0.48% 1.90% iv. Total Loans 0.53% 0.21% 0.01% 0.16% 0.19% 0.17%
NUMBER OF CONTRACTS AS A % OF 30-59 DAYS 60-89 DAYS 90-119 DAYS 120+ DAYS REPO IN CHARGE OFFS IN INVENTORY PERIOD ------------------------------------------------------------------------------------------------ PREVIOUS NUMBER i. Prime Loans 0.12% 0.10% 0.06% 0.07% 0.09% 0.10% ii. Non-Prime Loans 1.10% 0.34% 0.00% 0.26% 0.34% 0.21% iii. Sub-Prime Loans 2.16% 0.54% 0.00% 0.00% 0.54% 1.62% iv. Total Loans 0.50% 0.20% 0.04% 0.14% 0.19% 0.17%
SECTION III. COLLECTION PERIOD ACTIVITY AND CURRENT STATUS
A. PORTFOLIO PRINCIPAL WEIGHTED AVERAGE NUMBER OF PRINCIPAL COUPON ORIGINAL TERM REMAINING TERM SEASONING CONTRACTS BALANCE (WAC) (MONTHS) (MONTHS) (MONTHS) --------------------------------------------------------------------------------------------- i. Prime Loans 6,545 111,134,845.17 6.69% 67.70 58.44 9.26 ii. Non-Prime Loans 3,742 60,936,457.11 11.50% 67.58 58.51 9.07 iii. Sub-Prime Loans 178 2,152,892.70 18.35% 61.03 51.82 9.21 iv. Pre-funding Account 0.00 v. Total Loans 10,465 174,224,194.98 8.52% 67.57 58.38 9.19
B. DELINQUENCIES IN PERIOD 30-59 DAYS 60-89 DAYS 90-119 DAYS 120+ DAYS REPO IN CHARGE OFFS IN INVENTORY PERIOD ------------------------------------------------------------------------------------------------ PRINCIPAL BALANCE i. Prime Loans 320,719.22 26,345.02 27,315.89 129,001.81 54,119.92 139,117.07 ii. Non-Prime Loans 708,214.73 265,758.87 149,340.22 41,788.80 232,488.15 239,911.44 iii. Sub-Prime Loans 43,762.46 27,317.82 0.00 0.00 0.00 10,775.25 iv. Total Loans 1,072,696.41 319,421.71 176,656.11 170,790.61 286,608.07 389,803.76
30-59 DAYS 60-89 DAYS 90-119 DAYS 120+ DAYS REPO IN CHARGE OFFS IN INVENTORY PERIOD ------------------------------------------------------------------------------------------------ NUMBER OF CONTRACTS i. Prime Loans 16 1 1 5 2 8 ii. Non-Prime Loans 47 16 10 3 13 13 iii. Sub-Prime Loans 3 2 0 0 0 1 iv. Total Loans 66 19 11 8 15 22
PRINCIPAL BALANCE AS A % OF 30-59 DAYS 60-89 DAYS 90-119 DAYS 120+ DAYS REPO IN CHARGE OFFS IN INVENTORY PERIOD ------------------------------------------------------------------------------------------------ CURRENT BALANCE i. Prime Loans 0.29% 0.02% 0.02% 0.12% 0.05% 0.13% ii. Non-Prime Loans 1.16% 0.44% 0.25% 0.07% 0.38% 0.39% iii. Sub-Prime Loans 2.03% 1.27% 0.00% 0.00% 0.00% 0.50% iv. Total Loans 0.62% 0.18% 0.10% 0.10% 0.16% 0.22%
NUMBER OF CONTRACTS AS A % OF 30-59 DAYS 60-89 DAYS 90-119 DAYS 120+ DAYS REPO IN CHARGE OFFS IN INVENTORY PERIOD ------------------------------------------------------------------------------------------------ CURRENT NUMBER i. Prime Loans 0.24% 0.02% 0.02% 0.08% 0.03% 0.12% ii. Non-Prime Loans 1.26% 0.43% 0.27% 0.08% 0.35% 0.35% iii. Sub-Prime Loans 1.69% 1.12% 0.00% 0.00% 0.00% 0.56% iv. Total Loans 0.63% 0.18% 0.11% 0.08% 0.14% 0.21%
SECTION III. COLLECTION PERIOD ACTIVITY AND CURRENT STATUS C. COLLECTIONS i. Simple Interest Contracts a. Interest Collections 1,270,198.59 b. Principal Collections 6,132,984.06 ii. Net Liquidation Proceeds 176,072.25 iii. Post Disposition Recoveries 8,155.01 iv. Repurchase Amounts a. Interest 0.00 b. Principal 0.00 D. PRE-FUNDING ACCOUNT i. Beginning Balance 0.00 ii. Withdrawal from Pre-funding Account During 0.00 Current Collection Period iii. Ending Balance 0.00 E. TOTAL AVAILABLE i. Total Interest Collections 1,270,198.59 ii. Total Principal Collections 6,309,056.31 iii. Collected Funds 7,579,254.90 iv. Reinvestment Income Collected in Spread Account 107.00 v. Reinvestment Income Collected in Pre-funding Account 0.00 vi. Monthly Capitalized Interest Amount 0.00 vii. Reinvestment Income Collected in Spread Account 1,780.54 F. MONTH END POOL BALANCE i. Beginning Pool Balance 180,746,982.80 ii. Principal Collections 6,309,056.31 iii. Realized and Cram-Down Losses 213,731.51 iv. Month End Pool Balance 174,224,194.98 SECTION IV. DISTRIBUTION CALCULATIONS A. SERVICING FEE i. Servicing Fee Rate a. Prime Receivable @ 1.00% 96,173.92 b. Non-prime Receivables @ 1.50% 78,844.22 c. Sub-prime Receivables @ 2.00% 3,771.51 d. Total Servicing Fee 178,789.65 e. Total Receivables @ 1.25% 188,278.11 ii. Base Servicing Fee (less of id. and ie.) 178,789.65 iii. Previous Servicing Fee Shortfall 0.00 iv. Additional Servicing Fee 0.00 v. Previous Additional Servicing Fee Shortfall 0.00 vi. Total Additional Servicing Fee 0.00 vii. Supplemental Servicing Fee 39,334.46 viii. Total Supplemental Servicing Fee 39,334.46 B. SURETY FEE i. Surety Fee Rate 0.180% ii. Base Surety Fee Due 27,108.30 iii. Previous Surety Fee Shortfall 0.00 iv. Total Surety Fee Due 27,108.30
C. BOND INTEREST ACCRUED BOND NUMBER PREVIOUS INTEREST ON INTEREST OF DAYS CURRENT INTEREST INTEREST TOTAL BOND RATE IN PERIOD INTEREST SHORTFALL SHORTFALL INTEREST DUE ------------------------------------------------------------------------------------------ i. Class A-1 Notes 1.14% 30 0.00 0.00 0.00 0.00 ii. Class A-2 Notes 1.61% 30 80,126.99 0.00 0.00 80,126.99 iii. Class A-3 Notes 2.31% 30 78,925.00 0.00 0.00 78,925.00 iv. Class A-4 Notes 3.13% 30 208,666.67 0.00 0.00 208,666.67 v. Total 2.44% 367,718.66 0.00 0.00 367,718.66
SECTION IV. DISTRIBUTION CALCULATIONS D. BOND PRINCIPAL i. Beginning Note Balance 180,721,982.80 ii. Current Pool Balance 174,199,194.98 iii. Principal Distributable Amount 6,522,787.82 E. TOTAL REQUIRED DISTRIBUTIONS 7,096,404.43 F. TOTAL AVAILABLE FUNDS 7,587,409.91 G. REQUIRED DISTRIBUTION SHORTFALL 0.00 H. CASH AVAILABLE IN SPREAD ACCOUNT 2,252,030.54 I. RESERVE ACCOUNT DRAW 0.00 J. PAYMENT PROVIDER COMMITMENT 7,238,966.60 K. PAYMENT PROVIDER REQUIRED PAYMENT AMOUNT 0.00 L. SURETY DRAW 0.00 M. INSURER OPTIONAL DEPOSIT 0.00 N. TOTAL CASH AVAILABLE FOR DISTRIBUTIONS 7,587,409.91 SECTION V. WATERFALL FOR DISTRIBUTIONS A. TOTAL AVAILABLE FUNDS 7,587,409.91 REMAINING AMOUNT AMOUNT DUE AMOUNT PAID SHORTFALL AVAILABLE FOR DISTRIBUTION -------------------------------------------------------------------------- B. SERVICING FEE 178,789.65 178,789.65 0.00 7,408,620.26 C. SURETY FEE 27,108.30 27,108.30 0.00 7,381,511.96 D. NOTE INTEREST 367,718.66 367,718.66 0.00 7,013,793.30 E. PRINCIPAL DISTRIBUTABLE AMOUNT 6,522,787.82 6,522,787.82 0.00 491,005.48 F. INTEREST ON UNREIMBURSED SURETY DRAWS 0.00 0.00 0.00 491,005.48 G. REIMBURSEMENT OF PREVIOUS SURETY DRAWS 0.00 0.00 0.00 491,005.48 H. REIMBURSEMENT OF INSURER OPTIONAL DEPOSITS 0.00 0.00 0.00 491,005.48 I. RESERVE DEPOSIT 0.00 0.00 0.00 491,005.48 J. PAYMENT OF ADDITIONAL SERVICING FEE 0.00 0.00 0.00 491,005.48 K. DEPOSIT TO CERTIFICATE DISTRIBUTION ACCT. 491,005.48 491,005.48 0.00 0.00
SECTION VI. BOND RECONCILIATION BEGINNING BALANCE PRINCIPAL PAID ENDING BALANCE INTEREST DUE INTEREST PAID INTEREST SHORTFALL ------------------------------------------------------------------------------------------------------- A. CLASS A-1 NOTES 0.00 0.00 0.00 0.00 0.00 0.00 B. CLASS A-2 NOTES 59,721,982.80 6,522,787.82 53,199,194.98 80,126.99 80,126.99 0.00 C. CLASS A-3 NOTES 41,000,000.00 0.00 41,000,000.00 78,925.00 78,925.00 0.00 D. CLASS A-4 NOTES 80,000,000.00 0.00 80,000,000.00 208,666.67 208,666.67 0.00 E. TOTAL 180,721,982.80 6,522,787.82 174,199,194.98 367,718.66 367,718.66 0.00
SECTION VII. SPREAD ACCOUNT RECONCILIATION A. NET YIELD CALCULATIONS i. Current Month 3.44% ii. Previous Month 4.18% iii. Second Previous Month 3.44% iv. Three-Month Average 3.69% v. Previous Three Month Average 3.72% vi. Second Previous Three Month Average 3.97% B. HAS NET YIELD TRIGGER EVENT OCCURRED AND IS IT CONTINUING? NO C. HAS SPREAD ACCOUNT DEPOSIT EVENT OCCURRED (CLAUSES (i) THROUGH (iv) OR (iv))? NO D. HAS SPREAD ACCOUNT DEPOSIT EVENT OCCURRED (CLAUSE (v))? NO E. REQUIRED SPREAD ACCOUNT PARAMETERS: I. SPREAD ACCOUNT FLOOR AMOUNT 2,250,250.00 II. SPREAD ACCOUNT SPECIFIED AMOUNT 9,146,770.24 III. SPREAD ACCOUNT MAXIMUM AMOUNT 17,422,419.50 IV. SPREAD ACCOUNT REQUIRED AMOUNT 2,250,250.00
F. ALLOCATIONS, DEPOSITS AND REDUCTIONS OF THE SPREAD ACCOUNT AND DEPOSIT OF CHANGE IN CASH ON PAYMENT THE PAYMENT PROVIDER COMMITMENT CASH IN PAYMENT PROVIDER DEPOSIT IN PROVIDER SPREAD ACCOUNT COMMITMENT SPREAD ACCOUNT COMMITMENT -------------------------------------------------------------- i. Beginning Balance 2,252,030.54 7,238,966.60 ii. Deposit of Payment Provider Commitment into Spread Account upon Spread Account Deposit Event (i-iv or vi) 0.00 0.00 2,252,030.54 7,238,966.60 iii. Deposit of Payment Provider Commitment into Spread Account upon Spread Account Deposit Event (v) 0.00 0.00 2,252,030.54 7,238,966.60 iv. Deposit to Spread Account from Waterfall 0.00 0.00 2,252,030.54 7,238,966.60 v. Release from Spread Account when Net Yield Trigger Event Has Not Occurred or Has Been Deemed Cured -1,780.54 0.00 2,250,250.00 7,238,966.60 vi. Release from Spread Account when Net Yield Trigger Event Has Occurred and Has Not Been Deemed Cured 0.00 0.00 2,250,250.00 7,238,966.60 vii. Reduction of Payment Provider Commitment when Net Yield Trigger Event Not Occurred or Deemed Cured 0.00 342,446.36 2,250,250.00 6,896,520.24 viii. Withdrawal from Spread Account for Insurer Optional Deposit 0.00 0.00 2,250,250.00 6,896,520.24 ix. Reduction of Payment Provider Commitment when Net Yield Trigger Event Has Occurred and Not Deemed Cured 0.00 0.00 2,250,250.00 6,896,520.24
SECTION VIII. SURETY BOND RECONCILIATION A. PREVIOUSLY UNREIMBURSED SURETY BOND DRAWS 0.00 B. INTEREST RATE ON OUTSTANDING DRAWS (PRIME + 1%) 5.25% C. CURRENT INTEREST ACCRUED ON PREVIOUSLY OUTSTANDING DRAWS 0.00 D. INTEREST PAID ON UNREIMBURSED SURETY DRAWS 0.00 E. NEW SURETY BOND DRAWS 0.00 F. REIMBURSEMENT OF PREVIOUS SURETY DRAWS 0.00 G. UNREIMBURSED SURETY DRAWS 0.00 H. PREVIOUS UNREIMBURSED INSURER OPTIONAL DEPOSITS 0.00 I. NEW INSURER OPTIONAL DEPOSIT 0.00 J. REIMBURSEMENT OF PREVIOUS INSURER OPTIONAL DEPOSITS 0.00 K. UNREIMBURSED INSURER OPTIONAL DEPOSITS 0.00 L. NUMBER OF EXTENSIONS PERFORMED DURING THE CURRENT COLLECTION PERIOD 124 M. BALANCE OF LOANS EXTENDED DURING THE CURRENT COLLECTION PERIOD 2,346,187.44
SECTION IX. HISTORICAL PORTFOLIO PERFORMANCE PREVIOUS PERIOD PREVIOUS PERIOD CURRENT CURRENT PERIOD CUMULATIVE CURRENT PERIOD CUMULATIVE PERIOD PREPAYMENT CHARGE OFFS CHARGE-OFFS LOSSES LOSSES SPEED ---------------------------------------------------------------------------------------- i. Prime Loans 496,904.29 139,117.07 241,430.99 68,554.58 1.9038% ii. Non-Prime Loans 881,077.85 239,911.44 395,876.43 135,192.23 1.8077% iii. Sub-Prime Loans 75,973.61 10,775.25 39,886.61 1,829.69 2.7384% iv. Total Loans 1,453,955.75 389,803.76 677,194.03 205,576.50 1.8841%
/s/ Harold E. Miller, Jr. /s/ Tonya B. Roemer - ---------------------------- ---------------------- Harold E. Miller, Jr. Tonya B. Roemer President,CEO Vice President -----END PRIVACY-ENHANCED MESSAGE-----