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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) September 2, 1999
MERIT Securities Corporation
(Exact name of registrant as specified in charter)
Virginia 03992 54-1736551
(State or other jurisdiction Commission (IRS Employer
of incorporation) File Number) Identification No.)
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
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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 September 2, 1999, the Registrant issued $341,250,000 principal amount
of Class A1, Class A2, Class A3, Class A4, Class M1 and Class M2 Bonds (the
"Registered Bonds") pursuant to the Series 13 Supplement dated as of August 1,
1999 (the "Series 13 Supplement"), to the Indenture dated as of August 1, 1999
(the "Original Indenture" and, collectively with the Series 13 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 initial
principal amounts, Class Interest Rates and the Stated Maturities of the
Registered Bonds are as follows:
Original Class Interest Stated
Designation Principal Amount Rate Maturity
Class A1 $75,000,000 (1) December 28, 2033
Class A2 35,000,000 (1) December 28, 2030
Class A3 47,000,000 (1) December 28, 2033
Class A4 116,000,000 (1) December 28, 2033
Class M1 41,364,000 (1) December 28, 2033
Class M2 26,886,000 (1) December 28, 2033
(1) Subject to cap as described in Exhibit 4.1
As security for the Registered Bonds, the Registrant pledged a pool of
manufactured housing retail installment sales contracts to the Trustee pursuant
to the Indenture. The contracts were purchased by the Registrant in a
privately-negotiated transaction with Issuer Holding Corp. ("IHC") pursuant to a
Sales Agreement dated August 31, 1999, between the Registrant and IHC
The Registered Bonds (except for $11,000,000 in aggregate initial principal
amount of the Class M2 Bonds) have been sold by the Registrant to Lehman
Brothers Inc. and Greenwich Capital Markets, Inc. (the "Underwriters") pursuant
to an Underwriting Agreement dated as of August 31, 1999, between the
Underwriters and the Registrant and IHC. The Registrant also pledged in a
Collateralization Fund additional assets, a Pre-Funding Account and a
capitalized Interest Account.
The description of the assets underlying the certificates pledged to secure
the Registered Bonds 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%.
Item 6. Resignations of Registrant's Directors.
Not Applicable.
Item 7. Financial Statements, Pro Forma, Financial Information and Exhibits
(a) Not Applicable.
(b) Not Applicable.
(c) Exhibits
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.
September 2, 1999
MERIT SECURITIES CORPORATION
By:
Lisa R. CookeLisa R. Cooke, Vice President
1) Current Unpaid Principal Balance
Current Unpaid Number Unpaid Principal Unpaid Principal Balance(%)
Principal Balance of Loans Balance
1-10,000 43 318,173 *
10,001-20,000 388 6,238,595 2
20,001-30,000 1258 32,368,386 10
30,001-40,000 1715 59,919,788 19
40,001-50,000 1357 60,944,240 19
50,001-60,000 1089 59,578,850 18
60,001-70,000 665 42,884,057 13
70,001-80,000 303 22,549,242 7
80,001-90,000 190 16,060,187 5
90,001-100,000 108 10,196,065 3
100,001-110,000 45 4,718,007 1
110,001-120,000 28 3,194,435 1
120,001-130,000 12 1,502,144 *
130,001-170,000 14 1,980,758 1
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7215 322,452,927 100
<FN>
The average Unpaid Principal Balance is $44,692, the maximum Unpaid
Principal Balance is $165,506 and the minimum Unpaid Principal Balance is $773.
</FN>
2) Remaining Term to Stated Maturity
Remaining Term Number of Unpaid Principal Unpaid Principal Balance (%)
(Months) Loans Balance
1-150 380 7,981,401 2
151-210 680 19,797,395 6
211-250 979 33,870,530 11
251-290 307 10,940,046 3
291-330 349 12,554,096 4
331-340 1145 53,851,936 17
341-350 29 1,554,639 *
351-355 100 5,830,746 2
356-360 3246 176,072,138 55
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7215 322,452,927 100
<FN>
The weighted average remaining term to stated maturity is 318 months.
</FN>
3) Original Loan-to-Value Ratio (1)
Original LTV Number of Unpaid Principal Unpaid Principal Balance (%)
Ratio (%) Loans Balance
50 & below 108 2,629,400 1
50.01 - 55.00 50 1,428,505 *
55.01 - 60.00 61 2,142,962 1
60.01 - 65.00 81 3,058,614 1
65.01 - 70.00 126 6,022,842 2
70.01 - 75.00 192 9,443,410 3
75.01 - 80.00 603 28,730,895 9
80.01 - 85.00 980 46,146,914 14
85.01 - 90.00 2525 114,721,571 36
90.01 - 95.00 2317 101,059,906 31
95.01 - 100.00 172 7,067,907 2
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7215 322,452,927 100
<FN>
The weighted average original loan-to-value is 87.34 months.
</FN>
4) Current Interest Rate
Current Interest Number of Unpaid Principal Unpaid Principal Balance (%)
Rate (%) Loans Balance
5.750- 5.999 37 3,143,984 1
6.000- 6.249 1 90,402 *
6.250- 6.499 42 3,205,851 1
6.500- 6.749 78 6,014,246 2
6.750- 6.999 367 22,965,004 7
7.000- 7.249 47 3,073,935 1
7.250- 7.499 230 13,929,917 4
7.500- 7.749 416 22,479,735 7
7.750- 7.999 598 30,333,438 9
8.000- 8.249 166 8,670,584 3
8.250- 8.499 373 19,552,533 6
8.500- 8.749 454 22,566,258 7
8.750- 8.999 567 24,683,117 8
9.000- 9.249 205 9,422,113 3
9.250- 9.499 396 15,347,314 5
9.500- 9.749 485 19,971,991 6
9.750- 9.999 691 26,918,515 8
10.000-10.249 104 4,335,724 1
10.250-10.499 307 11,011,539 3
10.500-10.749 371 13,174,491 4
10.750-10.999 351 12,668,206 4
11.000-11.249 93 3,527,624 1
11.250-11.499 147 4,872,498 2
11.500-11.749 243 7,796,560 2
11.750-11.999 162 4,840,986 2
12.000-12.249 49 1,467,254 *
12.250-12.499 89 2,374,703 1
12.500-12.749 45 1,395,159 *
12.750-12.999 44 1,200,917 *
13.000-13.249 6 185,986 *
13.250-13.499 33 845,899 *
13.500-13.749 8 172,499 *
13.750-13.999 9 206,291 *
14.000-14.500 1 7,654 *
================================================================================
7215 322,452,927 100
<FN>
The weighted average current interest rate per annum is 8.89%.
</FN>
5) State Distribution
State Number of Unpaid Principal Unpaid Principal Balance (%)
Loans Balance
Texas 1481 60,915,250 19
North Carolina 783 40,703,691 13
Georgia 703 30,631,601 9
South Carolina 557 25,864,897 8
Michigan 509 21,222,022 7
Kentucky 413 16,054,038 5
Tennessee 331 14,330,589 4
Oregon 200 11,252,564 3
Florida 235 10,829,132 3
Ohio 262 10,414,883 3
Virginia 209 9,857,476 3
Washington 160 9,350,677 3
West Virginia 202 8,246,540 3
Arkansas 168 7,629,966 2
Mississippi 157 6,928,287 2
Arizona 127 6,057,728 2
Alabama 124 5,644,365 2
California 101 4,658,579 1
Idaho 87 4,548,789 1
Oklahoma 96 4,226,753 1
Indiana 94 3,839,806 1
New York 66 2,519,984 1
Other 150 6,725,311 2
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7215 322,452,927 100
<FN>
Others include: Colorado, Delaware, Illinois, Kansas, Louisiana, Maryland,
Missouri, Nevada, New Mexico, Pennsylvania, Utah, and Vermont.
</FN>
6) New or Used
Number of Loans Unpaid Principal Balance Unpaid Principal Balance (%)
New 6301 293,596,392 91
Used 914 28,856,535 9
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7215 322,452,927 100
7) Single or Multi-Wide
Number of Loans Unpaid Principal Unpaid Principal Balance (%)
Balance
Single Wide 2689 79,957,693 25
Multi-Wide 4526 242,495,234 75
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7215 322,452,927 100
8) Year of Loan Origination
Year Number of Unpaid Principal Unpaid Principal Balance (%)
Loans Balance
1999 4868 231,507,372 72
1998 38 3,504,794 1
1997 2297 86,989,934 27
1996 12 450,827 *
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7215 322,452,927 100