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
- --------------------------------------------------------------------------------
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. Cooke
Lisa R. Cooke, Vice President
1) Current Unpaid Principal Balance
Current Unpaid Number of Unpaid Principal Unpaid Principal
Principal Balance Loans Balance Balance (%)
1-10,000 48 354,579 *
10,001-20,000 453 7,277,828 2
20,001-30,000 1487 38,267,313 10
30,001-40,000 2025 70,835,341 18
40,001-50,000 1649 74,029,850 18
50,001-60,000 1330 72,662,344 18
60,001-70,000 841 54,228,007 13
70,001-80,000 415 30,897,927 8
80,001-90,000 264 22,352,708 6
90,001-100,000 152 14,367,543 4
100,001-110,000 63 6,589,270 2
110,001-120,000 43 4,909,289 1
120,001-130,000 19 2,363,381 1
130,001-170,000 20 2,816,049 1
================================================================================
8,809 401,951,429 100
<FN>
The average Unpaid Principal Balance is $45,630, the maximum Unpaid
Principal Balance is $165,095 and the minimum Unpaid Principal Balance is
$1,566.
</FN>
2) Remaining Term to Stated Maturity
Remaining Number of Unpaid Principal Unpaid Principal
Term (Months) Loans Balance Balance (%)
1-150 454 9,640,503 2
151-210 794 23,315,077 6
211-250 1094 37,753,232 9
251-290 301 10,777,139 3
291-330 481 17,534,920 4
331-340 1111 52,298,105 13
341-350 38 2,175,205 1
351-355 1543 81,952,901 20
356-360 2993 166,504,347 41
================================================================================
8,809 401,951,429 100
<FN>
The weighted average remaining term to stated maturity is 320 months.
</FN>
3) Original Loan-to-Value Ratio (1)
Original LTV Number of Unpaid Principal Unpaid Principal
Ratio (%) Loans Balance Balance (%)
50 & below 140 3,524,601 1
50.01 - 55.00 63 1,937,557 *
55.01 - 60.00 76 2,855,463 1
60.01 - 65.00 107 4,440,871 1
65.01 - 70.00 157 7,649,458 2
70.01 - 75.00 239 11,954,990 3
75.01 - 80.00 797 38,558,521 10
80.01 - 85.00 1151 54,675,639 14
85.01 - 90.00 3067 141,990,822 35
90.01 - 95.00 2838 127,096,685 32
95.01 - 100.00 174 7,266,823 2
================================================================================
8,809 401,951,429 100
<FN>
The weighted average original loan-to-value is 87.20 months.
</FN>
4) Current Interest Rate
Current Interest Number Unpaid Principal Unpaid Principal
Rate (%) of Loans Balance Balance (%)
5.750- 5.999 37 3,129,406 1
6.000- 6.249 1 88,688 *
6.250- 6.499 42 3,195,452 1
6.500- 6.749 88 6,792,870 2
6.750- 6.999 428 27,466,528 7
7.000- 7.249 62 4,121,585 1
7.250- 7.499 279 17,277,620 4
7.500- 7.749 468 25,942,313 6
7.750- 7.999 738 39,148,552 10
8.000- 8.249 196 10,333,751 3
8.250- 8.499 479 26,425,293 7
8.500- 8.749 532 26,539,993 7
8.750- 8.999 733 33,140,408 8
9.000- 9.249 249 11,446,215 3
9.250- 9.499 552 22,657,191 6
9.500- 9.749 568 23,822,184 6
9.750- 9.999 846 33,288,593 8
10.000-10.249 142 5,716,274 1
10.250-10.499 381 13,955,070 3
10.500-10.749 444 16,076,906 4
10.750-10.999 417 15,498,922 4
11.000-11.249 115 4,375,863 1
11.250-11.499 192 6,573,129 2
11.500-11.749 261 8,548,813 2
11.750-11.999 196 6,020,425 1
12.000-12.249 54 1,624,986 *
12.250-12.499 113 3,348,456 1
12.500-12.749 55 1,687,790 *
12.750-12.999 63 1,744,711 *
13.000-13.249 10 293,136 *
13.250-13.499 38 983,171 *
13.500-13.749 12 275,820 *
13.750-13.999 16 378,878 *
14.000-14.500 2 32,438 *
================================================================================
8,809 401,951,429 100
<FN>
The weighted average current interest rate per annum is 8.91%.
</FN>
5) State Distribution
State Number Unpaid Principal Unpaid Principal
of Loans Balance Balance (%)
Texas 1790 74,226,998 18
North Carolina 945 51,148,850 13
Georgia 837 37,610,453 9
South Carolina 635 29,691,318 7
Michigan 555 23,645,653 6
Kentucky 534 20,865,768 5
Tennessee 422 18,762,505 5
Oregon 287 17,354,571 4
Florida 283 13,606,788 3
Ohio 305 12,269,065 3
Washington 196 11,716,356 3
Virginia 247 11,688,966 3
West Virginia 287 11,487,356 3
Arkansas 238 10,550,707 3
Mississippi 194 8,713,802 2
Alabama 164 7,594,703 2
Arizona 159 7,445,792 2
Idaho 113 6,359,857 2
California 128 5,984,347 1
Oklahoma 122 5,437,994 1
Indiana 113 4,811,741 1
New York 72 2,820,989 1
Other 183 8,156,850 2
================================================================================
8,809 401,951,429 100
<FN>
Others include: Colorado, Delaware, Illinois, Kansas, Louisiana, Maryland,
Missouri, Nevada, New Mexico, Pennsylvania, Utah, Wisconsin, and Vermont.
</FN>
6) New or Used
Number Unpaid Principal Unpaid Principal Balance (%)
of Loans Balance
New 7716 366,816,103 91
Used 1093 35,135,327 9
================================================================================
8,809 401,951,429 100
7) Single or Multi-Wide
Number of Unpaid Principal Unpaid Principal
Loans Balance Balance (%)
Single Wide 3196 95,705,858 24
Multi-Wide 5613 306,245,572 76
================================================================================
8,809 401,951,429 100
8) Year of Loan Origination
Year Number of Unpaid Principal Unpaid Principal
Loans Balance Balance (%)
1999 6524 313,572,250 78
1998 36 3,321,360 1
1997 2237 84,608,286 21
1996 12 449,533 *
================================================================================
8,809 401,951,429 100