First Union National Bank Com Mort Pas THR Cert Ser 2002 C1 10-K 2005 FY Annual report

A

LLIED

C

APITAL

1919 Pennsylvania Avenue, NW
Washington, DC 20006-3434
202-331-1112
202-659-2053 Fax

March 8, 2005





As of and for the year ended December 31, 2004, Allied Capital Corporation, in its
capacity as Special Servicer has complied in all material respects with the applicable
minimum servicing standards set forth in the Mortgage Bankers Association of
America's Uniform Single Attestation March 14, 2005Program for Mortgage Bankers
The applicable minimum standards are Items VI and VII.

/S/ Kathleen C. Olin
Kathleen C. Olin
Vice President, Special Servicing

www.alliedcapital.com

MINIMUM SERVICING

STANDARDS

I. CUSTODIAL BANK ACCOUNTS

1.

Reconciliations shall be prepared on a monthly basis for all custodial bank
accounts and related bank clearing accounts. These reconciliations shall:

* be mathematically accurate;

* be prepared within forty-five (45) calendar days after the cutoff date;

* be reviewed and approved by someone other than the person who prepared the
reconciliation; and

* document explanations for reconciling items. These reconciling items shall be
resolved within ninety (90) calendar days of their original identification.

2.

Funds of the servicing entity shall be advanced in cases where there is an
overdraft in an investor's or a mortgagor's account.

3.

Each custodial account shall be maintained at a federally insured depository
institution in trust for the applicable investor.

4.

Escrow funds held in trust for a mortgagor shall be returned to the mortgagor
within thirty (30) calendar days of payoff of the mortgage loan.

II. MORTGAGE PAYMENTS

1.

Mortgage payments shall be deposited into the custodial bank accounts and
related bank clearing accounts within two business days of receipt.

2. Mortgage payments made in accordance with the mortgagor's loan documents

shall be posted to the applicable mortgagor records within two business days of
receipt.

3. Mortgage payments shall be allocated to principal, interest, insurance, taxes or

other escrow items in accordance with the mortgagor's loan documents.

4. Mortgage payments identified as loan payoffs shall be allocated in accordance

with the mortgagor's loan documents.

III. DISBURSEMENTS

1. Disbursements made via wire transfer on behalf of a mortgagor or investor shall

be made only by authorized personnel.

2. Disbursements made on behalf of a mortgagor or investor shall be posted within

two business days to the mortgagor's or investor's records maintained by the
servicing entity.

3. Tax and insurance payments shall be made on or before the penalty or insurance

policy expiration dates, as indicated on tax bills and insurance premium notices
respectively, provided that such support has been received by the servicing entity
at least thirty (30) calendar days prior to these dates.

4. Any late payment penalties paid in conjunction with the payment of any tax bill or

insurance premium notice shall be paid from the servicing entity's funds and not
charged to the mortgagor, unless the late payment was due to the mortgagor's
error or omission.

5. Amounts remitted to investors per the servicer's investor reports shall agree with

cancelled checks, or other form of payment, or custodial bank statements.

6. Unissued checks shall be safeguarded so as to prevent unauthorized access.

IV. INVESTOR ACCOUNTING AND REPORTING

1.

The servicing entity's investor reports shall agree with, or reconcile to, investors'
records on a monthly basis as to the total unpaid principal balance and number of
loans serviced by the servicing entity.

V. MORTGAGOR LOAN ACCOUNTING

1.

The servicing entity's mortgage loan records shall agree with, or reconcile to, the
records of mortgagors with respect to the unpaid principal balance on a monthly
basis.

2.

Adjustments on ARM loans shall be computed based on the related mortgage note
and any ARM rider.

3.

Escrow accounts shall be analyzed, in accordance with the mortgagor's loan
documents, on at least an annual basis.

4.

Interest on escrow accounts shall be paid, or credited, to mortgagors in
accordance with the applicable state laws. (A compilation of state

laws relating to the payment of interest on escrow accounts may be obtained
through the MBA's FAX ON DEMAND service. For more information, contact
MBA.)

VI. DELINQUENCIES

1.

Records documenting collection efforts shall be maintained during the period a
loan is in default and shall be updated at least monthly. Such records shall
describe the entity's activities in monitoring delinquent loans including, for
example, phone calls, letters and mortgage payment rescheduling plans in cases
where the delinquency is deemed temporary (e.g., illness or unemployment).

VII. INSURANCE POLICIES

1.

A fidelity bond and errors and omissions policy shall be in effect on the servicing
entity throughout the reporting period in the amount of coverage represented to
investors to management's assertion.