EXHIBIT 99.1
                               
           SERVICER'S ANNUAL STATEMENT OF COMPLIANCE
                               
                        (See Attached)





April 22, 1999

BY CERTIFIED MAIL
RETURN RECEIPT REQUESTED

LaSalle National Bank
135 South LaSalle Street
Suite 1740
Chicago, Illinois  60674-4107
Attn:   Asset Backed Securities Trust Services Group - AMRESCO,
Series 1997-C1

Ladies and Gentlemen:

Reference is made to the Pooling and Servicing Agreement  dated
as of June 1, 1997, among AMRESCO Commercial Mortgage Funding I
Corporation,  as  Depositor, AMRESCO Services,  a  division  of
AMRESCO  Management, Inc. ("AMI"), as Master Servicer , Midland
Loan  Services,  L.P.,  as Special Servicer,  LaSalle  National
Bank,  as  Trustee,  and ABN AMRO Bank  N.V.  as  Fiscal  Agent
entered  into  in  connection with AMRESCO Commercial  Mortgage
Funding   I  Corporation  Mortgage  Pass-Through  Certificates,
Series  1997-C1  (the "PSA").  Effective August  1,  1997,  AMI
delegated  all of its rights, duties and obligations under  the
PSA to AMRESCO Services, L.P. ("AMRESCO").

As  Senior  Vice  President of AMRESCO,  I  have  delegated  to
specified   officers   ("Officers")  the   responsibility   for
reviewing  and  monitoring the activities of  AMRESCO  and  our
performance under the Agreement.

Accordingly,  pursuant  to Section  3.14  of  the  PSA  and  in
accordance  with  certifications made to  me  by  each  of  the
Officers, AMRESCO certifies the following:

(1)     A  review  of the activities of AMRESCO for the  period
  from  January  1,  1998  to December 31,  1998,  and  of  its
  performance   under  the  PSA  has  been   made   under   the
  supervision of the Officers, who have in turn been  under  my
  supervision;

(2)   To  the best of my knowledge and the Officers' knowledge,
  based on such review, AMRESCO has fulfilled its obligations as
  Master  Servicer  in  all  material respects  under  the  PSA
  throughout  the period from January 1, 1998 to  December  31,
  1998;
LaSalle National Bank
April 22, 1999
Page 2


(3)   To  the best of my knowledge and the Officers' knowledge,
  based on such review, each related sub-servicer has fulfilled
  its  obligations  under its sub-servicing  Agreement  in  all
  material respects; and

(4)   To  the best of my knowledge and the Officers' knowledge,
  AMRESCO has not received any notice regarding qualification, or
  challenging the status, of REMIC I, REMIC II or REMIC III as a
  REMIC from the IRS or any other governmental agency or body.

Please  refer  to the enclosed independent accountants'  report
dated  February 4, 1999, delivered pursuant to Section 3.15  of
the  PSA,  which discusses the results of their review  of  our
activities  under  this  Agreement and  which  is  incorporated
herein by reference.

Very truly yours,

/s/ Daniel B. Kirby

Daniel B. Kirby
Senior Vice President
AMRESCO Services, L.P.

Enclosures

cc:  AMRESCO Commercial Mortgage Funding, L.P.
     700 North Pearl Street
     Suite 1600
     Dallas, Texas   75201-7424

     Standard & Poor's Rating Service
     26 Broadway, 10th Floor
     New York, New York  10004
     Attn:  CMBS Surveillance
     
     Fitch Investors Service, L.P.
     One State Street Plaza
     New York, New York  10004
     Attn:  CMBS Surveillance