TIERS ASSET-BACKED SECURITIES, SERIES
CHAMT TRUST 1997-7
FINANCIAL STATEMENT
FOR THE YEAR ENDED JUNE 30, 1999
TOGETHER WITH AUDITORS' REPORT
TIERS ASSET-BACKED SECURITIES, SERIES CHAMT TRUST 1997-7
TABLE OF CONTENTS
DESCRIPTION PAGES
Independent Auditors' Report 3
Schedule of Cash Receipts and Disbursements 4
for the year ended June 30, 1999
Notes to Financial Statement 5 - 6
REPORT OF INDEPENDENT AUDITORS
The Trustee of TIERS Asset-Backed Securities,
Series CHAMT Trust 1997-7
We have audited the accompanying Schedule of Receipts and
Disbursements (The "Schedule") of TIERS Asset-Backed Securities,
Series CHAMT Trust 1997-7 for the year ended June 30, 1999. This
Schedule is the responsibility of TIERS Asset-Backed Securities,
Series CHAMT Trust 1997-7 Trustees. Our responsibility is to
express an opinion on this Schedule based on our audit.
We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the Schedule is free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the Schedule. An audit also includes assessing
the accounting principles used and significant estimates made by
the Trustees, as well as evaluating the overall Schedule
presentation. We believe that our audit provides a reasonable
basis for our opinion.
As described in Note 2, the financial statement presents
receipts and disbursements of the TIERS Asset-Backed Securities,
Series CHAMT Trust 1997-7 in accordance with the trust indenture
and is not intended to be a presentation of financial statements
in accordance with generally accepted accounting principles.
In our opinion, the Schedule referred to above presents fairly,
in all material respects, the receipts and disbursements of the
TIERS Asset-Backed Securities, Series CHAMT Trust 1997-7 for the
year ended June 30, 1999 on the basis of accounting as described
in Note 2.
New York, New York
September 30, 1999
3
TIERS Asset-Backed Securities, Series CHAMT Trust 1997-7
Schedule of Receipts and Cash Disbursements
For the year ended June 30, 1999
RECEIPTS
Interest on Chase Credit Card Master Trust 1996-4
Asset Backed Certificates Class A due July 15, 2006 $ 17,324,349
Sale of Chase Credit Card Master Trust 1996-4
Asset Backed Certificates Class A due July 15, 2006 254,294,000
Swap Payment (net) received from West Deutsche Landesbank 3,353,542
------------
Total Cash Receipts $274,971,891
============
DISBURSEMENTS
Interest paid on TIERS Asset-Backed Securities,
Series CHAMT Trust 1997-7, Class A Notes $ 20,069,852
Interest paid on TIERS Asset-Backed Securities,
Series CHAMT Trust 1997-7, Class B Certificates 608,039
Retirement of Chase Credit Card Master Trust 1996-4
Asset Backed Certificates, Class A Notes 254,294,000
------------
Total Cash Disbursements $274,971,891
============
The accompanying notes are an integral part of financial statements
ASTON BELL & ASSOCIATES
4
TIERS ASSET-BACKED SECURITIES, SERIES CHAMT TRUST 1997-7
NOTES TO FINANCIAL STATEMENT
FOR THE YEAR ENDED JUNE 30, 1999
NOTE 1
- ------
TIERS Asset-Backed Securities, Series CHAMT Trust 1997-7 (the "Issuer") is the
Issuer under the Series Trust Indenture, dated as of September 15, 1997,
incorporating the Standard Terms of the Trust Indenture, dated as of September
15, 1997 by and between the Issuer and US Bank Trust National Association,
formerly First Trust of New York, National Association, as Trustee (the
"Trustee"), providing for the issuance of the TIERS Asset-Backed Securities,
Series CHAMT Trust 1997-7 Class A Notes (the "Notes").
The Issuer also issued the Class B Certificates, although not under the
aforementioned Indenture, and the Trustee is obligated under the Indenture to
apply certain funds to the payment of interest or principal on the Notes and on
the Class B Certificates.
The Issuer entered into an ISDA Master Agreement together with the related
schedule and confirmation with Westdeutsche Landesbank Girozentrale, New York
Branch (the "Swap Counterparty") under which the Issuer and the Swap
Counterparty are obligated to make certain payments to each other.
The Indenture provides that the Trustee will receive the payments due to the
Issuer from the Swap Counterparty and make all payments due to the Swap
Counterparty from the Issuer on the Issuer's behalf.
The Issuer was constituted pursuant to TIERS Asset-Backed
Securities, Series CHAMT Supplement, dated as of September 15,
1997 by and between Structured Products Corp. and Delaware Trust
Capital Management, Inc. (the "Owner Trustee").
NOTE 2
- ------
The financial statement presents receipts and disbursements of the TIERS
Asset-Backed Securities, Series CHAMT 1997-7 in accordance with the trust
indenture and is not intended to be a presentation of financial statements in
accordance with generally accepted accounting
5
TIERS ASSET-BACKED SECURITIES, SERIES CHAMT TRUST 1997-7
NOTES TO FINANCIAL STATEMENT
FOR THE YEAR ENDED JUNE 30, 1999
NOTE 2 - CONTINUED
- ------------------
principles. Certain financial statement items are defined in the
trust indenture as follows:
Term Assets - Chase Credit Card Master Trust, Class A Floating Rate Asset Backed
Certificates, Series 1996-4 (the "Term Assets"). The Term Assets are denominated
and payable in U.S. dollars (the "Term Assets Currency") and were issued in
minimum denominations of $1,000 and integral multiples in excess thereof.
SWAP Agreement - Under the Swap Agreement, the Issuer will pay to the Swap
Counterparty amounts equal to the payments of interest received on the Term
Assets including any deferred interest), and the Swap Counterparty will pay to
the Issuer on each Distribution Date amounts equal to the interest payable on
the Notes on such date. If on any Distribution Date the amount received by the
Issuer on the Term Assets and paid to the Swap Counterparty is less than the
scheduled interest thereon, the Swap Counterparty shall reduce its payment to
the Issuer by the amount of such deficiency.
Class A Notes - The TIERSSM Asset-Backed Securities, Series CHAMT 1997-7,
offered hereby consisted originally of $352,980,000 principal amount of the
Issuer's Fixed Rate Notes, Class A (the "Notes"). The Notes are denominated and
payable in U.S.dollars (the "Specified Currency") and were issued in minimum
denominations of $1,000 and multiples of $1,000 in excess thereof. Class A Notes
are retired in accordance with the Trust Indenture.
Class B Certificates -The Issuer also issued privately $10,920,000 principal
amount of its Floating Rate Certificates, Class B (the "Certificates"). The
Certificates are being used privately in a separate offering and are not being
offered hereby.
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