Union Acceptance Corporation Announces $534 Million Securitization

8 June 2000

Union Acceptance Corporation Announces $534 Million Securitization

INDIANAPOLIS - Union Acceptance Corporation today announced that its subsidiary, UAC Securitization Corporation, has priced an offering of approximately $534 million of asset-backed notes, secured by a pool of prime automobile receivables. The lead manager and co-manager of the transaction were Banc of America Securities LLC, and Bear, Stearns & Co. Inc., respectively.

The UACSC 2000-B Owner Trust is structured as a business trust, which will issue five classes of notes:


 Security      Amount     Average Life Coupon    Price     Yield

    A-1      $30,000,000     0.10     6.6300%  100.00000  6.6300%
    A-2     $185,050,000     0.75     7.1700%  99.99742   7.2820%
    A-3     $164,250,000     2.00     7.4400%  99.99541   7.5590%
    A-4     $128,275,000     3.35     7.5400%  99.97584   7.6680%
     B       $26,719,016     3.82     7.7300%  99.99573   7.8570%

    "The execution of this quarter's securitization in June, rather than May, allowed us to include an additional month's volume and take advantage of a more attractive interest rate environment than we were experiencing in May," commented Rick Brown, Chief Financial Officer. "This final securitization of fiscal 2000 is the largest securitization transaction we have executed to date."

    The notes will be rated P-1/A-1+ for the A-1 class of notes and Aaa/AAA for the A-2 through B class of notes by Moody's Investors Service, Inc. and Standard & Poor's Ratings Services, a division of the McGraw Hill Companies, Inc. The payment of monthly principal and interest is guaranteed by an insurance policy provided by MBIA Insurance Corporation, a wholly owned subsidiary of MBIA Inc. . The Servicer is UAC, the Indenture Trustee is The Bank of New York, and the Owner Trustee is First Union Trust Company, National Association.

    The weighted average contract rate of the receivables is 13.97%. Including the UACSC 2000-B Owner Trust, UAC and its affiliates have securitized over $8.1 billion in prime automobile receivables.

    Corporate Description

    UAC is one of the nation's largest independent, indirect automobile finance companies. The Company's primary business is acquiring, securitizing and servicing prime retail installment sales contracts. These contracts are originated by dealerships affiliated with major domestic and foreign automobile manufacturers. The Company is focused on the upper-end of the credit quality spectrum. Union Acceptance Corporation commenced business in 1986 and currently acquires receivables from over 4,600 manufacturer-franchised dealerships in 38 states. By using state-of-the-art technology in a highly centralized underwriting and servicing environment, Union Acceptance Corporation enjoys one of the lowest cost operating structures in the independent prime automobile finance industry.