SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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 30, 1998
B. F. SAUL REAL ESTATE INVESTMENT TRUST
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(Exact name of registrant as specified in its charter)
Maryland 1-7184 52-6053341
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
8401 Connecticut Avenue, Chevy Chase, Maryland 20815
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (301) 986-6000
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N/A
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(Former name or former address, if changed since last report)
Item 2. ACQUISITION OR DISPOSITION OF ASSETS
On September 30, 1998, Chevy Chase Bank, F.S.B., a federally chartered
stock savings bank (the "Bank") sold its credit card portfolio and related
operations to First USA Bank, N.A., a nationally charted banking association
("FUSA"), pursuant to the Purchase and Sale Agreement executed with FUSA on
September 2, 1998. The B.F. Saul Real Estate Investment Trust owns 80% of the
common stock of the Bank. The credit card portfolio purchased included
approximately $4.9 billion in managed credit card loans and $3.1 million Visa
and MasterCard credit accounts. In connection with the purchase, FUSA has leased
the Bank's credit card operations center in Frederick, Maryland and will offer
employment to approximately 1,300 Bank credit card employees. The Bank received
cash proceeds from the sale equal to the net book value of the assets and
liabilities being transferred plus a premium. The Bank will continue to offer
credit card products to its customers under the Chevy Chase Bank name pursuant
to an Agent Bank Agreement with FUSA.
SIGNATURES
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 thereunto duly authorized.
B. F. SAUL REAL ESTATE INVESTMENT TRUST
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(Registrant)
Date: October 15, 1998 Stephen R. Halpin, Jr.
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Vice President and Chief Financial Officer
Date: October 15, 1998 Ross E. Heasley
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Vice President and Principal Accounting Officer