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                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549


                                   FORM 15


           Certification and Notice of Termination of Registration
          under Section 12(g) of the Securities Exchange Act of 1934
           or Suspension of Duty to File Reports Under Sections 13
               and 15(d) of the Securities Exchange Act of 1934


                         Commission File No. 333-64775

                 NovaStar Mortgage Funding Trust, Series 1999-1
           (Issuer in respect of the NovaStar Home Equity Loan Asset-
                          Backed Bonds, Series 1999-1)
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            (Exact name of registrant as specified in its charter)


             c/o First Union National Bank, 401 South Tryon Street
                   Charlotte, NC  28288-1179, (704) 383-9568
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         (Address, including zip code and telephone number, including
           area code, of registrant's principal executive offices)

          NovaStar Home Equity Loan Asset-Backed Bonds, Series 1999-1
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           (Title of each class of securities covered by this Form)

                                      None
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          (Titles of all other classes of securities for which a duty
            to file reports under section 13(a) or 15(d) remains)


        Please place an X in the box(es) to designate the appropriate rule
provision(s) relied upon to terminate or suspend the duty to file reports:

     Rule 12g-4(a)(1)(i)    [ ]        Rule 12h-3(b)(1)(ii)     [ ]
     Rule 12g-4(a)(1)(ii)   [ ]        Rule 12h-3(b)(2)(i)      [ ]
     Rule 12g-4(a)(2)(i)    [ ]        Rule 12h-3(b)(2)(ii)     [ ]
     Rule 12g-4(a)(2)(ii)   [ ]        Rule 15d-6               [X]
     Rule 12h-3(b)(1)(i)    [X]

        Approximate number of holders of record as of the certification or
notice date: 1
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        Pursuant to the requirements of the Securities Exchange Act of 1934,
NovaStar Mortgage Funding Trust, Series 1998-1  has caused this
certification/notice to be signed on its behalf by the undersigned duly
authorized person.


Dated:  January 27, 2000              By: First Union National Bank,
                                          as Indenture Trustee and on behalf
                                          of NovaStar Mortgage Funding
                                          Trust, Series 1999-1

                                      By: /s/ Robert Ashbaugh