8-K 1 bsa03ac1.txt SEPTEMBER 8-K UNITED STATES 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): September 25, 2003 BEAR STEARNS ASSET BACKED SECURITIES TRUST Asset-Backed Certificates, Series 2003-AC1 Trust (Exact name of registrant as specified in its charter) New York (governing law of 333-43091-16 Pending Pooling and Servicing Agreement) (Commission IRS EIN (State or other File Number) jurisdiction of Incorporation) c/o Wells Fargo Bank Minnesota, N.A., 9062 Old Annapolis Road Columbia, MD 21045 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (410) 884-2000 (Former name or former address, if changed since last report) ITEM 5. Other Events On September 25, 2003 a distribution was made to holders of BEAR STEARNS ASSET BACKED SECURITIES TRUST, Asset-Backed Certificates, Series 2003-AC1 Trust. ITEM 7. Financial Statements and Exhibits (c) Exhibits furnished in accordance with Item 601(a) of Regulation S-K Exhibit Number Description EX-99.1 Monthly report distributed to holders of Asset-Backed Certificates, Series 2003-AC1 Trust, relating to the September 25, 2003 distribution. 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 hereunto duly authorized. BEAR STEARNS ASSET BACKED SECURITIES TRUST Asset-Backed Certificates, Series 2003-AC1 Trust By: Wells Fargo Bank Minnesota, N.A., as Securities Administrator By: /s/ Beth Belfield, Assistant Vice President By: Beth Belfield, Assistant Vice President Date: 9/24/03 INDEX TO EXHIBITS Exhibit Number Description EX-99.1 Monthly report distributed to holders of Asset- Backed Certificates, Series 2003-AC1 Trust, relating to the September 25, 2003 distribution. EX-99.1

Bear Stearns Asset Backed Securities Asset-Backed Certificates Record Date: 78/31/03 Distribution Date: 89/25/03 BSA Series: 2003-AC1 Contact: Customer Service - CTSLink Wells Fargo Bank Minnesota, N.A. Securities Administration Services 7485 New Horizon Way Frederick, MD 21703 Telephone: (301) 815-6600 Fax: (301) 815-6660 Certificateholder Distribution Summary Certificate Certificate Beginning Class Pass-Through Certificate Interest Principal Class CUSIP Description Rate Balance Distribution Distribution A-1 07384YHG4 SEN 4.10300% ~~389~~369,~~262~~177,~~347~~668.9895 1,~~330~~262,~~952~~279.8497 2015,~~084~~898,~~679~~710.0348 A-IO 07384YHH2 IO 5.00000% 0.00 312,500.00 0.00 M-1 07384YHJ8 MEZ 4.60600% 2423,~~608~~338,~~436~~720.3456 9489,~~455~~581.3879 1,~~269~~005,~~715~~086.7869 M-2 07384YHK5 MEZ 4.96800% 2019,~~134~~095,~~012~~162.4145 8379,~~354~~053.8197 1822,~~038,849~~337.9701 B-1 07384YHL3 SUB 5.66500% 3,~~580~~395,~~256~~526.2358 16,~~901~~029.7971 ~~184~~146,~~729~~229.6503 B-2 07384YHM1 SUB 4.~~35000~~36000% 9,~~843~~335,~~195~~318.4941 3635,~~870~~048.9793 ~~507~~402,~~877~~027.0736 R-1 BSA3AC1R1 RES 0.00000% 0.00 0.00 0.00 R-2 BSA3AC1R2 RES 0.00000% 0.00 0.00 0.00 R-3 BSA3AC1R3 RES 0.00000% 0.00 0.00 0.00 C BSA03AC1C SEN 0.00000% 0.00 ~~740~~690,~~137~~420.8524 0.00 P SEN 0.00000% 100.00 1842,~~190~~615.6418 0.00 Totals ~~447~~424,~~428~~342,~~348~~496.4595 2,~~633~~527,~~364~~529.2879 2318,~~085~~274,~~851~~390.5057

Certificateholder Distribution Summary (continued) Current Ending Cumulative Realized Certificate Total Realized Class Loss Balance Distribution Losses A-1 0.00 ~~369~~353,~~177~~278,~~668~~958.9547 2117,~~415~~160,~~631~~990.8745 0.00 A-IO 0.00 0.00 312,500.00 0.00 M-1 0.00 2322,~~338~~333,~~720~~633.5687 1,~~364~~094,~~171~~668.1648 0.00 M-2 0.00 1918,~~095~~272,~~162~~825.4544 1901,~~122,204~~390.7898 0.00 B-1 0.00 3,~~395~~249,~~526~~297.5854 ~~201~~162,~~631~~258.4474 0.00 B-2 0.00 98,~~335~~933,~~318~~291.4105 ~~544~~437,~~748~~076.0429 0.00 R-1 0.00 0.00 0.00 0.00 R-2 0.00 0.00 0.00 0.00 R-3 0.00 0.00 0.00 0.00 C 0.00 0.00 ~~740~~690,~~137~~420.8524 0.00 P 0.00 100.00 1842,~~190~~615.6418 0.00 Totals 0.00 ~~424~~406,~~342~~068,~~496~~106.9537 2520,~~719~~801,~~215~~920.7836 0.00 All distributions required by the Pooling and Servicing Agreement have been calculated by the Certificate Administrator on behalf of the Trustee.

Principal Distribution Statement Original Beginning Scheduled Unscheduled Face Certificate Principal Principal Realized Class Amount Balance Distribution Distribution Accretion Loss (1) A-1 434,812,000.00 ~~389~~369,~~262~~177,~~347~~668.9895 0.00 2015,~~084~~898,~~679~~710.0348 0.00 0.00 A-IO 0.00 0.00 0.00 0.00 0.00 0.00 M-1 27,488,000.00 2423,~~608~~338,~~436~~720.3456 0.00 1,~~269~~005,~~715~~086.7869 0.00 0.00 M-2 22,490,000.00 2019,~~134~~095,~~012~~162.4145 0.00 1822,~~038,849~~337.9701 0.00 0.00 B-1 3,999,201.00 3,~~580~~395,~~256~~526.2358 0.00 ~~184~~146,~~729~~229.6503 0.00 0.00 B-2 10,995,000.00 9,~~843~~335,~~195~~318.4941 0.00 ~~507~~402,~~877~~027.0736 0.00 0.00 R-1 0.00 0.00 0.00 0.00 0.00 0.00 R-2 0.00 0.00 0.00 0.00 0.00 0.00 R-3 0.00 0.00 0.00 0.00 0.00 0.00 C 0.00 0.00 0.00 0.00 0.00 0.00 P 100.00 100.00 0.00 0.00 0.00 0.00 Totals 499,784,301.00 ~~447~~424,~~428~~342,~~348~~496.4595 0.00 2318,~~085~~274,~~851~~390.5057 0.00 0.00 (1) Amount Does Not Include Excess Special Hazard, Bankruptcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Principal Distribution Statement (continued) Total Ending Ending Total Principal Certificate Certificate Principal Class Reduction Balance Percentage Distribution A-1 2015,~~084~~898,~~679~~710.0348 ~~369~~353,~~177~~278,~~668~~958.9547 0.~~84905124~~81248668 2015,~~084~~898,~~679~~710.0348 A-IO 0.00 0.00 0.00000000 0.00 M-1 1,~~269~~005,~~715~~086.7869 2322,~~338~~333,~~720~~633.5687 0.~~84905124~~81248668 1,~~269~~005,~~715~~086.7869 M-2 1822,~~038,849~~337.9701 1918,~~095~~272,~~162~~825.4544 0.~~84905124~~81248668 1822,~~038,849~~337.9701 B-1 ~~184~~146,~~729~~229.6503 3,~~395~~249,~~526~~297.5854 0.~~84905124~~81248668 ~~184~~146,~~729~~229.6503 B-2 ~~507~~402,~~877~~027.0736 98,~~335~~933,~~318~~291.4105 0.~~84905124~~81248668 ~~507~~402,~~877~~027.0736 R-1 0.00 0.00 0.00000000 0.00 R-2 0.00 0.00 0.00000000 0.00 R-3 0.00 0.00 0.00000000 0.00 C 0.00 0.00 0.00000000 0.00 P 0.00 100.00 1.00000000 0.00 Totals 2318,~~085~~274,~~851~~390.5057 ~~424~~406,~~342~~068,~~496~~106.9537 0.~~84905127~~81248672 2318,~~085~~274,~~851~~390.5057

Principal Distribution Factors Statement Original Beginning Scheduled Unscheduled Face Certificate Principal Principal Class (2) Amount Balance Distribution Distribution Accretion A-1 434,812,000.00 ~~895~~849.~~24288194~~05124272 0.00000000 4636.~~19163921~~56456234 0.00000000 A-IO 0.00 0.00000000 0.00000000 0.00000000 0.00000000 M-1 27,488,000.00 ~~895~~849.~~24288198~~05124272 0.00000000 4636.~~19163926~~56456235 0.00000000 M-2 22,490,000.00 ~~895~~849.~~24288173~~05124277 0.00000000 4636.~~19163940~~56456247 0.00000000 B-1 3,999,201.00 ~~895~~849.~~24288227~~05124299 0.00000000 4636.~~19163928~~56456127 0.00000000 B-2 10,995,000.00 ~~895~~849.~~24288222~~05124238 0.00000000 4636.~~19163893~~56456207 0.00000000 R-1 0.00 0.00000000 0.00000000 0.00000000 0.00000000 R-2 0.00 0.00000000 0.00000000 0.00000000 0.00000000 R-3 0.00 0.00000000 0.00000000 0.00000000 0.00000000 C 0.00 0.00000000 0.00000000 0.00000000 0.00000000 P 100.00 1000.00000000 0.00000000 0.00000000 0.00000000

Principal Distribution Factors Statement (continued) Total Ending Ending Total Realized Principal Certificate Certificate Principal Class Loss (3) Reduction Balance Percentage Distribution A-1 0.00000000 4636.~~19163921~~56456234 ~~849~~812.~~05124272~~48668038 0.~~84905124~~81248668 4636.~~19163921~~56456234 A-IO 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 M-1 0.00000000 4636.~~19163926~~56456235 ~~849~~812.~~05124272~~48668037 0.~~84905124~~81248668 4636.~~19163926~~56456235 M-2 0.00000000 4636.~~19163940~~56456247 ~~849~~812.~~05124277~~48668030 0.~~84905124~~81248668 4636.~~19163940~~56456247 B-1 0.00000000 4636.~~19163928~~56456127 ~~849~~812.~~05124299~~48667921 0.~~84905124~~81248668 4636.~~19163928~~56456127 B-2 0.00000000 4636.~~19163893~~56456207 ~~849~~812.~~05124238~~48668031 0.~~84905124~~81248668 4636.~~19163893~~56456207 R-1 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 R-2 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 R-3 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 C 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 P 0.00000000 0.00000000 1,000.00000000 1.00000000 0.00000000 (3) Amount Does Not Include Excess Special Hazard, Bankrupcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Interest Distribution Statement Beginning Payment of Original Current Certificate/ Current Unpaid Current Face Certificate Notional Accrued Interest Interest Class Amount Rate Balance Interest Shortfall Shortfall A-1 434,812,000.00 4.10300% ~~389~~369,~~262~~177,~~347~~668.9895 1,~~330~~262,~~952~~279.8498 0.00 0.00 A-IO 0.00 5.00000% 75,000,000.00 312,500.00 0.00 0.00 M-1 27,488,000.00 4.60600% 2423,~~608~~338,~~436~~720.3456 9489,~~455~~581.3879 0.00 0.00 M-2 22,490,000.00 4.96800% 2019,~~134~~095,~~012~~162.4145 8379,~~354~~053.8197 0.00 0.00 B-1 3,999,201.00 5.66500% 3,~~580~~395,~~256~~526.2358 16,~~901~~029.7972 0.00 0.00 B-2 10,995,000.00 4.~~35000~~36000% 9,~~843~~335,~~195~~318.4941 3635,~~870~~048.9793 0.00 0.00 R-1 0.00 0.00000% 0.00 0.00 0.00 0.00 R-2 0.00 0.00000% 0.00 0.00 0.00 0.00 R-3 0.00 0.00000% 0.00 0.00 0.00 0.00 C 0.00 0.00000% 0.00 0.00 0.00 0.00 P 100.00 0.00000% 100.00 0.00 0.00 0.00 Totals 499,784,301.00 1,~~875~~794,~~035~~494.7939 0.00 0.00

Interest Distribution Statement (continued) Remaining Ending Non-Supported Total Unpaid Certificate/ Interest Realized Interest Interest Notional Class Shortfall Losses (4) Distribution Shortfall Balance A-1 0.0001 0.00 1,~~330~~262,~~952~~279.8497 0.00 ~~369~~353,~~177~~278,~~668~~958.9547 A-IO 0.00 0.00 312,500.00 0.00 75,000,000.00 M-1 0.00 0.00 9489,~~455~~581.3879 0.00 2322,~~338~~333,~~720~~633.5687 M-2 0.00 0.00 8379,~~354~~053.8197 0.00 1918,~~095~~272,~~162~~825.4544 B-1 0.00 0.00 16,~~901~~029.7971 0.00 3,~~395~~249,~~526~~297.5854 B-2 0.00 0.00 3635,~~870~~048.9793 0.00 98,~~335~~933,~~318~~291.4105 R-1 0.00 0.00 0.00 0.00 0.00 R-2 0.00 0.00 0.00 0.00 0.00 R-3 0.00 0.00 0.00 0.00 0.00 C 0.00 0.00 ~~740~~690,~~137~~420.8524 0.00 0.00 P 0.00 0.00 1842,~~190~~615.6418 0.00 100.00 Totals 0.0001 0.00 2,~~633~~527,~~364~~529.2879 0.00 (4) Amount Does Not Include Excess Special Hazard, Bankrupcy, or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

Interest Distribution Factors Statement Beginning Payment of Original Current Certificate/ Current Unpaid Current Face Certificate Notional Accrued Interest Interest Class (5) Amount Rate Balance Interest Shortfall Shortfall A-1 434,812,000.00 4.10300% ~~895~~849.~~24288194~~05124272 32.~~06098461~~90304771 0.00000000 0.00000000 A-IO 0.00 5.00000% 1000.00000000 4.16666667 0.00000000 0.00000000 M-1 27,488,000.00 4.60600% ~~895~~849.~~24288198~~05124272 3.~~43624054~~25894172 0.00000000 0.00000000 M-2 22,490,000.00 4.96800% ~~895~~849.~~24288173~~05124277 3.~~70630547~~51507203 0.00000000 0.00000000 B-1 3,999,201.00 5.66500% ~~895~~849.~~24288227~~05124299 4.~~22629170~~00823064 0.00000000 0.00000000 B-2 10,995,000.00 4.~~35000~~36000% ~~895~~849.~~24288222~~05124238 3.~~35343065~~18771533 0.00000000 0.00000000 R-1 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 R-2 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 R-3 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 C 0.00 0.00000% 0.00000000 0.00000000 0.00000000 0.00000000 P 100.00 0.00000% 1000.00000000 0.00000000 0.00000000 0.00000000 (5) Per $1 denomination.

Interest Distribution Factors Statement (continued) Remaining Ending Non-Supported Total Unpaid Certificate/ Interest Realized Interest Interest Notional Class Shortfall Losses (6) Distribution Shortfall Balance A-1 0.~~00000000~~00000002 0.00000000 32.~~06098461~~90304768 0.00000000 ~~849~~812.~~05124272~~48668038 A-IO 0.00000000 0.00000000 4.16666667 0.00000000 1000.00000000 M-1 0.00000000 0.00000000 3.~~43624054~~25894172 0.00000000 ~~849~~812.~~05124272~~48668037 M-2 0.00000000 0.00000000 3.~~70630547~~51507203 0.00000000 ~~849~~812.~~05124277~~48668030 B-1 0.00000000 0.00000000 4.~~22629170~~00822814 0.00000000 ~~849~~812.~~05124299~~48667921 B-2 0.00000000 0.00000000 3.~~35343065~~18771533 0.00000000 ~~849~~812.~~05124238~~48668031 R-1 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 R-2 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 R-3 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 C 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 P 0.00000000 0.00000000 ~~181906~~426151.~~40000000~~80000000 0.00000000 1000.00000000 (6) Amount Does Not Include Excess Special Hazard, Bankrupcy,or Fraud Losses Unless Otherwise Disclosed. Please Refer to the Prospectus Supplement for a Full Description.

CERTIFICATEHOLDER ACCOUNT STATEMENT CERTIFICATE ACCOUNT Beginning Balance 0.00 Deposits Payments of Interest and Principal 2520,~~732~~890,~~076~~671.1228 Liquidations, Insurance Proceeds, Reserve Funds 0.00 Proceeds from Repurchased Loans 0.00 Other Amounts (Servicer Advances) 7176,~~053~~570.2661 Realized Loss (Gains, Subsequent Expenses & Recoveries) 0.00 Prepayment Penalties 0.00 Total Deposits 2520,~~803~~967,~~129~~241.3889 Withdrawals Reimbursement for Servicer Advances 5271,~~893~~053.1026 Payment of Service Fee 3194,~~020~~268.4927 Payment of Interest and Principal 2520,~~719~~801,~~215~~920.7936 Total Withdrawals (Pool Distribution Amount) 2520,~~803~~967,~~129~~241.3889 Ending Balance 0.00

PREPAYMENT/CURTAILMENT INTEREST SHORTFALL Total Prepayment/Curtailment Interest Shortfall ~~68,251~~0.1300 Servicing Fee Support ~~68,251~~0.1300 Non-Supported Prepayment/Curtailment Interest Shortfall 0.0001

SERVICING FEES Gross Servicing Fee 9388,~~734~~925.8230 Master Servicing Fee 3,~~749~~557.3904 Miscellaneous Fee 1,~~787~~785.4193 Supported Prepayment/Curtailment Interest Shortfall ~~68,251~~0.1300 Net Servicing Fee 3194,~~020~~268.4927

LOAN STATUS STRATIFICATION/CREDIT ENHANCEMENT STATEMENT DELINQUENCY STATUS DELINQUENT BANKRUPTCY FORECLOSURE REO Total No of Loans No of Loans No of Loans No of Loans No of Loans Principal Balance Principal Balance Principal Balance Principal Balance Principal Balance 0-29 Days 0 0 1 1 0.00 0.00 ~~298~~297,~~109~~832.2586 ~~298~~297,~~109~~832.2586 30 Days 2019 0 0 0 2019 3,~~645~~277,~~836~~437.5664 0.00 0.00 0.00 3,~~645~~277,~~836~~437.5664 60 Days 1012 0 0 0 1012 21,~~142~~884,~~266~~753.6954 0.00 0.00 0.00 21,~~142~~884,~~266~~753.6954 90 Days 87 0 0 0 87 31,~~018~~590,~~397~~866.0481 0.00 0.00 0.00 31,~~018~~590,~~397~~866.0481 120 Days 26 0 0 0 26 ~~182~~2,~~712~~663,440.7129 0.00 0.00 0.00 ~~182~~2,~~712~~663,440.7129 150 Days 12 0 0 0 12 ~~543~~182,~~668~~712.8171 0.00 0.00 0.00 ~~543~~182,~~668~~712.8171 180+ Days 01 0 0 0 01 0543,668.0081 0.00 0.00 0.00 0543,668.0081 Totals 4147 0 0 1 4248 910,~~532~~142,~~881~~879.8180 0.00 0.00 ~~298~~297,~~109~~832.2586 910,~~830~~440,~~991~~712.0666 No of Loans No of Loans No of Loans No of Loans No of Loans Principal Balance Principal Balance Principal Balance Principal Balance Principal Balance 0-29 Days 0.000000% 0.000000% 0.~~059737~~061805% 0.~~059737~~061805% 0.000000% 0.000000% 0.~~069779~~072830% 0.~~069779~~072830% 30 Days 1.~~194743~~174289% 0.000000% 0.000000% 0.000000% 1.~~194743~~174289% 0.~~853390~~801445% 0.000000% 0.000000% 0.000000% 0.~~853390~~801445% 60 Days 0.~~597372~~741656% 0.000000% 0.000000% 0.000000% 0.~~597372~~741656% 0.~~501446~~460886% 0.000000% 0.000000% 0.000000% 0.~~501446~~460886% 90 Days 0.~~477897~~432633% 0.000000% 0.000000% 0.000000% 0.~~477897~~432633% 0.~~706524~~389021% 0.000000% 0.000000% 0.000000% 0.~~706524~~389021% 120 Days 0.~~119474~~370828% 0.000000% 0.000000% 0.000000% 0.~~119474~~370828% 0.~~042768~~651302% 0.000000% 0.000000% 0.000000% 0.~~042768~~651302% 150 Days 0.~~059737~~123609% 0.000000% 0.000000% 0.000000% 0.~~059737~~123609% 0.~~127258~~044679% 0.000000% 0.000000% 0.000000% 0.~~127258~~044679% 180+ Days 0.~~000000~~061805% 0.000000% 0.000000% 0.000000% 0.~~000000~~061805% 0.~~000000~~132946% 0.000000% 0.000000% 0.000000% 0.~~000000~~132946% Totals 2.~~449223~~904821% 0.000000% 0.000000% 0.~~059737~~061805% 2.~~508961~~966625% 2.~~231385~~480280% 0.000000% 0.000000% 0.~~069779~~072830% 2.~~301164~~553110%

OTHER INFORMATION Current Period Class A Insufficient Funds 0.00 Principal Balance of Contaminated Properties 0.00 Periodic Advance 7176,~~053~~570.2661

COLLATERAL STATEMENT Collateral Description Mixed Fixed Weighted Average Gross Coupon 7.~~241673~~250982% Weighted Average Net Coupon 67.~~991673~~000982% Weighted Average Pass-Through Rate 6.~~976906~~985961% Weighted Average Maturity(Stepdown Calculation ) ~~331~~330 Beginning Scheduled Collateral Loan Count 1,~~740~~674 Number Of Loans Paid In Full 6656 Ending Scheduled Collateral Loan Count 1,~~674~~618 Beginning Scheduled Collateral Balance ~~449~~426,~~927~~841,~~270~~418.4595 Ending Scheduled Collateral Balance ~~426~~408,~~841~~567,~~418~~028.9538 Ending Actual Collateral Balance at 31-~~Jul~~Aug-2003 ~~427~~408,~~218~~940,~~185~~999.1264 Monthly P &I Constant 32,~~153~~999,~~013~~055.3949 Special Servicing Fee 0.00 Prepayment Penalties 0.00 Realized Loss Amount 0.00 Cumulative Realized Loss 0.00 Ending Scheduled Balance for Premium Loans ~~426~~408,~~841~~567,~~418~~028.9538 Scheduled Principal ~~437~~419,~~824~~872.8364 Unscheduled Principal 2217,~~648~~854,~~026~~517.6793 Required Overcollateralization Amount 0.00 Overcollateralized Increase Amount 0.00 Overcollateralized reduction Amount 0.00 Specified O/C Amount 2,498,922.00 Overcollateralized Amount 2,499,022.00 Overcollateralized Deficiency Amount 0.00 Base Overcollateralized Amount 0.00 Extra principal distribution Amount 0.00 Excess Cash Amount ~~758~~733,~~328~~035.4940

Miscellaneous Reporting Three month rolling average 0.~~009381~~013140%

Filing Compare · BEAR STEARNS ASSET BACKED SECURITIES TRUST 2003-AC1