EXHIBIT 19.1
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FRANKLIN AUTO TRUST 2003-2
MONTHLY SERVICING REPORT
COLLECTION PERIOD: AUGUST 2004
DISTRIBUTION DATE: SEPTEMBER 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)
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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
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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)
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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. BONDS OUTSTANDING
UNPAID INTEREST
PRINCIPAL BALANCE SHORTFALL AMOUNT
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i. Class A-1 Notes 0.00 0.00
ii. Class A-2 Notes 53,199,194.98 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 6,896,520.24
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
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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
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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
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PREVIOUS 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
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PREVIOUS 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
A. PORTFOLIO PRINCIPAL WEIGHTED AVERAGE
NUMBER OF PRINCIPAL COUPON ORIGINAL TERM REMAINING TERM SEASONING
CONTRACTS BALANCE (WAC) (MONTHS) (MONTHS) (MONTHS)
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i. Prime Loans 6,400 106,844,188.76 6.69% 67.73 57.48 10.25
ii. Non-Prime Loans 3,630 58,242,294.39 11.48% 67.59 57.56 10.03
iii. Sub-Prime Loans 174 2,072,029.03 18.46% 60.98 50.84 10.14
iv. Pre-funding Account 0.00
v. Total Loans 10,204 167,158,512.18 8.50% 67.60 57.43 10.17
B. DELINQUENCIES IN PERIOD
30-59 DAYS 60-89 DAYS 90-119 DAYS 120+ DAYS REPO IN CHARGE OFFS IN
INVENTORY PERIOD
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PRINCIPAL BALANCE
i. Prime Loans 410,668.46 59,181.71 0.00 63,016.00 89,648.48 129,082.40
ii. Non-Prime Loans 668,211.78 223,894.30 76,935.82 102,981.24 215,625.12 285,028.56
iii. Sub-Prime Loans 65,201.55 22,368.09 12,778.77 0.00 35,146.86 14,539.05
iv. Total Loans 1,144,081.79 305,444.10 89,714.59 165,997.24 340,420.46 428,650.01
30-59 DAYS 60-89 DAYS 90-119 DAYS 120+ DAYS REPO IN CHARGE OFFS IN
INVENTORY PERIOD
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NUMBER OF CONTRACTS
i. Prime Loans 23 4 0 3 5 5
ii. Non-Prime Loans 43 15 5 7 11 17
iii. Sub-Prime Loans 5 1 1 0 2 1
iv. Total Loans 71 20 6 10 18 23
PRINCIPAL BALANCE AS A % OF 30-59 DAYS 60-89 DAYS 90-119 DAYS 120+ DAYS REPO IN CHARGE OFFS IN
INVENTORY PERIOD
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CURRENT BALANCE
i. Prime Loans 0.38% 0.06% 0.00% 0.06% 0.08% 0.12%
ii. Non-Prime Loans 1.15% 0.38% 0.13% 0.18% 0.37% 0.49%
iii. Sub-Prime Loans 3.15% 1.08% 0.62% 0.00% 1.70% 0.70%
iv. Total Loans 0.68% 0.18% 0.05% 0.10% 0.20% 0.26%
NUMBER OF CONTRACTS AS A % OF 30-59 DAYS 60-89 DAYS 90-119 DAYS 120+ DAYS REPO IN CHARGE OFFS IN
INVENTORY PERIOD
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CURRENT NUMBER
i. Prime Loans 0.36% 0.06% 0.00% 0.05% 0.08% 0.08%
ii. Non-Prime Loans 1.18% 0.41% 0.14% 0.19% 0.30% 0.47%
iii. Sub-Prime Loans 2.87% 0.57% 0.57% 0.00% 1.15% 0.57%
iv. Total Loans 0.70% 0.20% 0.06% 0.10% 0.18% 0.23%
SECTION III. COLLECTION PERIOD ACTIVITY AND CURRENT STATUS
C. COLLECTIONS
i. Simple Interest Contracts
a. Interest Collections 1,201,125.87
b. Principal Collections 6,637,032.79
ii. Net Liquidation Proceeds 164,383.00
iii. Post Disposition Recoveries 25,316.38
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 1,201,125.87
ii. Total Principal Collections 6,801,415.79
iii. Collected Funds 8,002,541.66
iv. Reinvestment Income Collected in Spread Account 124.21
v. Reinvestment Income Collected in Pre-funding Account 0.00
vi. Monthly Capitalized Interest Amount 0.00
vii. Reinvestment Income Collected in Spread Account 1,958.76
F. MONTH END POOL BALANCE
i. Beginning Pool Balance 174,224,194.98
ii. Principal Collections 6,801,415.79
iii. Realized and Cram-Down Losses 264,267.01
iv. Month End Pool Balance 167,158,512.18
SECTION IV. DISTRIBUTION CALCULATIONS
A. SERVICING FEE
i. Servicing Fee Rate
a. Prime Receivable @ 1.00% 92,612.37
b. Non-prime Receivables @ 1.50% 76,170.57
c. Sub-prime Receivables @ 2.00% 3,588.15
d. Total Servicing Fee 172,371.10
e. Total Receivables @ 1.25% 181,483.54
ii. Base Servicing Fee (less of id. and ie.) 172,371.10
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 35,589.44
viii. Total Supplemental Servicing Fee 35,589.44
B. SURETY FEE
i. Surety Fee Rate 0.180%
ii. Base Surety Fee Due 26,129.88
iii. Previous Surety Fee Shortfall 0.00
iv. Total Surety Fee Due 26,129.88
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
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i. Class A-1 Notes 1.14% 30 0.00 0.00 0.00 0.00
ii. Class A-2 Notes 1.61% 30 71,375.59 0.00 0.00 71,375.59
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 2.47% 358,967.25 0.00 0.00 358,967.25
SECTION IV. DISTRIBUTION CALCULATIONS
D. BOND PRINCIPAL
i. Beginning Note Balance 174,199,194.98
ii. Current Pool Balance 167,133,512.18
iii. Principal Distributable Amount 7,065,682.80
E. TOTAL REQUIRED DISTRIBUTIONS 7,623,151.03
F. TOTAL AVAILABLE FUNDS 8,027,858.04
G. REQUIRED DISTRIBUTION SHORTFALL 0.00
H. CASH AVAILABLE IN SPREAD ACCOUNT 2,252,208.76
I. RESERVE ACCOUNT DRAW 0.00
J. PAYMENT PROVIDER COMMITMENT 6,896,520.24
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 8,027,858.04
SECTION V. WATERFALL FOR DISTRIBUTIONS
A. TOTAL AVAILABLE FUNDS 8,027,858.04
REMAINING AMOUNT
AMOUNT DUE AMOUNT PAID SHORTFALL AVAILABLE FOR
DISTRIBUTION
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B. SERVICING FEE 172,371.10 172,371.10 0.00 7,855,486.94
C. SURETY FEE 26,129.88 26,129.88 0.00 7,829,357.06
D. NOTE INTEREST 358,967.25 358,967.25 0.00 7,470,389.81
E. PRINCIPAL DISTRIBUTABLE AMOUNT 7,065,682.80 7,065,682.80 0.00 404,707.01
F. INTEREST ON UNREIMBURSED SURETY DRAWS 0.00 0.00 0.00 404,707.01
G. REIMBURSEMENT OF PREVIOUS SURETY DRAWS 0.00 0.00 0.00 404,707.01
H. REIMBURSEMENT OF INSURER OPTIONAL DEPOSITS 0.00 0.00 0.00 404,707.01
I. RESERVE DEPOSIT 0.00 0.00 0.00 404,707.01
J. PAYMENT OF ADDITIONAL SERVICING FEE 0.00 0.00 0.00 404,707.01
K. DEPOSIT TO CERTIFICATE DISTRIBUTION ACCT. 404,707.01 404,707.01 0.00 0.00
SECTION VI. BOND RECONCILIATION
BEGINNING BALANCE PRINCIPAL PAID ENDING BALANCE INTEREST DUE INTEREST PAID INTEREST SHORTFALL
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A. CLASS A-1 NOTES 0.00 0.00 0.00 0.00 0.00 0.00
B. CLASS A-2 NOTES 53,199,194.98 7,065,682.80 46,133,512.18 71,375.59 71,375.59 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 174,199,194.98 7,065,682.80 167,133,512.18 358,967.25 358,967.25 0.00
SECTION VII. SPREAD ACCOUNT RECONCILIATION
A. NET YIELD CALCULATIONS
i. Current Month 2.97%
ii. Previous Month 3.62%
iii. Second Previous Month 4.18%
iv. Three-Month Average 3.60%
v. Previous Three Month Average 3.74%
vi. Second Previous Three Month Average 3.72%
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 8,775,821.89
iii. SPREAD ACCOUNT MAXIMUM AMOUNT 16,715,851.22
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
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i. Beginning Balance 2,252,208.76 6,896,520.24
ii. Deposit of Payment Provider Commitment into Spread
Account upon Spread Account Deposit Event (i-iv or vi) 0.00 0.00 2,252,208.76 6,896,520.24
iii. Deposit of Payment Provider Commitment into Spread
Account upon Spread Account Deposit Event (v) 0.00 0.00 2,252,208.76 6,896,520.24
iv. Deposit to Spread Account from Waterfall 0.00 0.00 2,252,208.76 6,896,520.24
v. Release from Spread Account when Net Yield Trigger
Event Has Not Occurred or Has Been Deemed Cured -1,958.76 0.00 2,250,250.00 6,896,520.24
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 6,896,520.24
vii. Reduction of Payment Provider Commitment when Net
Yield Trigger Event Not Occurred or Deemed Cured 0.00 370,948.35 2,250,250.00 6,525,571.89
viii. Withdrawal from Spread Account for Insurer Optional
Deposit 0.00 0.00 2,250,250.00 6,525,571.89
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 6,525,571.89
SECTION VIII. SURETY BOND RECONCILIATION
A. PREVIOUSLY UNREIMBURSED SURETY BOND DRAWS 0.00
B. INTEREST RATE ON OUTSTANDING DRAWS (PRIME + 1%) 5.50%
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 133
M. BALANCE OF LOANS EXTENDED DURING THE CURRENT COLLECTION PERIOD 2,446,776.81
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
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i. Prime Loans 636,021.36 129,082.40 309,985.57 109,729.30 1.9544%
ii. Non-Prime Loans 1,120,989.29 285,028.56 531,068.66 128,084.28 2.4108%
iii. Sub-Prime Loans 86,748.86 14,539.05 41,716.30 1,137.05 2.0002%
iv. Total Loans 1,843,759.51 428,650.01 882,770.53 238,950.63 2.1212%
/s/ Harold E. Miller, Jr. /s/ Tonya B. Roemer
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Harold E. Miller, Jr. Tonya B. Roemer
President,CEO Vice President