SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 12 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 12, 1999
MERIT Securities Corporation
(Exact name of registrant as specified in charter)
Virginia 03992 54-1736551
(State or other (Commission (IRS Employer
jurisdiction File Number) Identification No.)
of incorporation)
10900 Nuckols Road, 3rd Floor, Glen Allen, Virginia 23060
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (804) 217-5800
Item 1. Changes in Control of Registrant.
Not Applicable.
Item 2. Acquisition or Disposition of Assets.
Not Applicable.
Item 3. Bankruptcy or Receivership.
Not Applicable.
Item 4. Changes in Registrant's Certifying Accountant.
Not Applicable.
Item 5. Other Events.
On March 29, 1999, the Registrant issued $294,952,000 initial principal
balance of its Collateralized Mortgage Bonds, Series 12, Class1- A1, Class 1-A2,
Class 1A3, Class 1-M1 and Class 1-M2 (the "Bonds") pursuant to the Series 12
Supplement dated as of March 1, 1999 (the "Series 12 Supplement"), to the
Indenture dated as of November 1, 1996 (the "Original Indenture" and,
collectively with the Series 12 Supplement, the "Indenture"), between the
Registrant and Chase Bank of Texas National Association, as trustee (the
"Trustee"). Capitalized terms used but not defined herein shall have the
meanings assigned to them in the Indenture. The Bonds were issued with the
initial principal amount as set forth below. The Class Interest Rates and the
Stated Maturities of the Bonds are as follows:
Designation Principal Amount Rate Maturity (with Call/without Call)
Class 1-A1 $ 71,000,000 6.16% 1.0/1.0 years
Class 1-A2 $ 40,750,000 6.19% 2.5/2.5 years
Class 1-A3 $128,327,000 6.45% 4.6/7.6 years
Class 1-M1 $ 30,867,000 6.88% 5.0/9.6 years
Class 1-M2 $ 24,008,000 7.35% 5.0/8.6 years
As security for the Bonds, the Registrant pledged a pool of fully
amortizing Loans to the Trustee pursuant to the Indenture. The Loans were
purchased by the Registrant in a privately-negotiated transaction with Issuer
Holding Corp. ("IHC") pursuant to a Sales Agreement dated September 20, 1996,
between the Registrant and RMCI.
The Bonds have been sold by the Registrant to Greenwich Capital Markets
Inc. (the "Underwriter") pursuant to an Underwriting
Agreement dated as of September 20, 1996, among the Underwriter, the
Registrant and RMCI.
The description of the Mortgage Loans pledged to the Trustee pursuant
to the Indenture begins on the following page. The amounts contained in the
following tables have been rounded to the nearest dollar amount or
percentage, as applicable. Asterisks (*) in the following tables indicate
values between 0.0% and 0.5%.
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.
April 12, 1998 MERIT SECURITIES CORPORATION
By: Lisa R. Cooke
Description of the Mortgage Pool and Mortgaged Premises
Except as otherwise indicated, the Loans underlying the Merit 12
Securities have the following characteristics as of March 1, 1999 (the
"Cut-off Date"):
(Due to rounding conventions in the Scheduled Principal Balance and Percent of
Scheduled Principal Balance columns in each of the following tables, column
totals may not equal the sum of the amounts in such columns.)
Current Scheduled Principal Balances
Current Scheduled Principal Percent of Scheduled Principal
1 - 20,000 2
20,001 - 30,000 10
30,001 - 40,000 18
40,001 - 50,000 18
50,001 - 60,000 19
60,001 - 70,000 13
70,001 - 80,000 7
80,001 - 90,000 5
90,001 - 100,000 3
100,001 - 110,000 2
110,001 - 120,000 1
120,001 - 130,000 1
130,001 - 200,000 1
Totals: 100
The average Unpaid Principal Balance is $44,740 ,
the maximum Unpaid Principal Balance is $197,249 and
the minimum Unpaid Principal Balance is $4,244.
Current Note Rates
Current Note Rates (%) Percent of Scheduled Principal Balance (%)
5.750 - 5.999 3
6.000 - 6.249 *
6.250 - 6.499 4
6.500 - 6.749 5
6.750 - 6.999 11
7.000 - 7.249 1
7.250 - 7.499 6
7.500 - 7.749 6
7.750 - 7.999 10
8.000 - 8.249 1
8.250 - 8.499 4
8.500 - 8.749 4
8.750 - 8.999 9
9.000 - 9.249 1
9.250 - 9.499 4
9.500 - 9.749 5
9.750 - 9.999 8
10.000 - 10.249 1
10.250 - 10.499 3
10.500 - 10.749 3
10.750 - 10.999 4
11.000 - 11.249 1
11.250 - 11.499 2
11.500 - 11.749 1
11.750 - 11.999 2
12.000 - 12.249 *
12.250 - 12.499 *
12.500 - 12.749 *
12.750 - 12.999 *
13.000 - 13.249 *
13.250 - 13.499 *
13.500 - 13.749 *
Totals: 100
The weighted average current interest rate per annum is 8.47%.
Remaining Term to Stated Maturity
Remaining Term (Months) Percent of Scheduled Principal Balance (%)
1 - 200 11
201 - 320 19
321 - 330 2
331 - 340 11
341 - 350 2
351 - 355 19
356 - 360 36
Totals: 100
Original Loan To Value
Original Loan To Value(1)
Original LTV Ratio(%) Unpaid Principal Balance(%)
50.00 and below 1
50.01 - 55.00 1
55.01 - 60.00 1
60.01 - 65.00 1
65.01 - 70.00 2
70.01 - 75.00 3
75.01 - 80.00 11
80.01 - 85.00 16
85.01 - 90.00 34
90.01 - 95.00 28
95.01 - 100.00 2
Totals: 100
(1) The Loan-to-Value Ratio of a Contract is equal to the ratio (expressed
as a percentage) of the original amount financed and the fair market value of
the property at the time of origination. The fair market value of the
manufactured homes is the total amount of the related contract plus any cash
downpayment and the value of any trade-in and in the case of a land-secured
Contract, the value of the land securing the Contract as appraised by an
independent appraiser
The weighted average original loan-to-value ratio is 86.37% .
State Distribution of Properties
State Distribution of Properties
State Unpaid Principal Balance(%)
Texas 17
North Carolina 14
Michigan 11
South Carolina 10
Georgia 9
Kentucky 4
Arkansas 4
Tennessee 4
Virginia 3
West Virginia 3
Ohio 3
Washington 3
Oregon 3
Florida 3
Arizona 2
Oklahoma 1
Mississippi 1
Idaho 1
Alabama 1
Indiana 1
New York 1
Others* 2
Totals: 100
*Others include: California, Colorado, Delaware, Iowa, Kansas,
Maryland, Missouri, Nevada, New Mexico, Pennsylvania,
Rhode Island, Utah and Vermont.