SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): December 21, 1996
National Financial Auto Funding Trust
(Exact name of registrant as specified in its charter)
Delaware 33-80813
(State or Other Jurisdiction (Commission
of Incorporation) File Number)
One Park Place, Suite 200
621 N. W. 53rd Street
Boca Raton, Florida 33487
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (407) 997-2747
Item 5. Other Events
On November 13, 1996, a single series of
certificates, entitled 6.33% Automobile
Receivables-Backed Certificates, Series 1996-1
(the "Certificates"), was issued pursuant to a
Pooling and Servicing Agreement, dated as of
October 21, 1996, among National Financial
Auto Funding Trust, as Transferor (the
"Transferor"), National Auto Finance Company
L.P., as Servicer (the "Servicer" or "NAFCO"),
and Harris Trust and Savings Bank, as Trustee
(the "Trustee"). The Trustee has caused to be
filed with the Commission, the Monthly Report
dated December 21, 1996. The Monthly
Report is filed pursuant to and in accordance
with current Commission policy in the area.
The filing of the Monthly Report will occur
subsequent to each monthly distribution to the
holders of the Trust's Certificates.
A. Monthly Report Information:
Aggregate distribution information for the current
distribution date December 21, 1996.
Principal Interest Ending Balance
0.00 327,566.95 62,098,000.00
B. No delinquency in payment under the Certificate
Insurance Policy has occurred.
C. Have any deficiencies occurred? NO.
Date:
Amount:
D. Were any amounts paid or are any amounts payable
under the Certificate Insurance Policy? NO
Amount:
E. Are there any developments with respect to the
Certificate Insurance Policy? NONE.
F. Item 1: Legal Proceedings: NONE
G. Item 2: Changes in Securities: NONE
H. Item 4: Submission of Matters to a Vote of Security
Holders: NONE
I. Item 5: Other Information - Form 10-Q, Part II -
Items 1,2,4,5 if applicable: NOT APPLICABLE
Item 7. Monthly Statements and Exhibits
Exhibit No.
1. Monthly Distribution Report for December 21, 1996.
<TABLE>
<CAPTION> Pre-Funding
Collection Pre-Funding Reserve Spread
Account Account Account Account
<S> <C> <C> <C> <C>
Beginning Account Balances 0.00 15,524,168.66 161,856.71 767,302.64
Interest Income 0.00 38,452.07 378.80 1,806.77
Collection Account
Lockbox Collections during the Collections Period 1,414,066.62 0.00 0.00 0.00
+ Retransfer Amt received from Retransfered Contracts 0.00 0.00 0.00 0.00
+ Income and gain from investment of Collection Acct 3,987.41 0.00 0.00 0.00
+ Amts rec from Transferor,Master Servicer or Subservicer 0.00 0.00 0.00 0.00
- - Late Pmt fees collected w/ respect to Contracts on Deposit (83.32) 0.00 0.00 0.00
- - Supplemental Servicing Fee 0.00 0.00 0.00 0.00
- - Income and gain on investments of Collection Acct (3,987.41) 0.00 0.00 (1,806.77)
- - Scheduled & Prepay Contract Principal (723,797.23) 0.00 0.00 0.00
- - Amounts deposited with respect to Retransferred Contracts 0.00 0.00 0.00 0.00
Certificate Account
+ Withdrawals from Collection Account (690,186.07) 0.00 0.00 0.00
+ Amounts received from the Transferor 0.00 0.00 0.00 0.00
+ Amounts received from Master Servicer or Subservicer 0.00 0.00 0.00 0.00
+ Withdrawals from Pre-Funding Reserve Account 0.00 0.00 (43,437.92) 0.00
+ Withdrawals from the Spread Account 0.00 0.00 0.00 0.00
+ Proceeds of any Contracts or Property 0.00 0.00 0.00 0.00
+ Income and gain on investment of the Cert Acct 0.00 (38,452.07) 0.00 0.00
+ Amounts received from Certificate Insurer 0.00 0.00 0.00 0.00
+ Withdrawals from Revolving Acct or Pre-Funding Acct 0.00 0.00 0.00 0.00
- - Expenses of an Opinion of Counsel 0.00 0.00 0.00 0.00
- - Expenses of Master Servicer or Transferor 0.00 0.00 0.00 0.00
- - Pmts to Master servicer of Ins and Liquid Proceeds 0.00 0.00 0.00 0.00
- - Pmts to Transferor from Retransferred Contracts or property 0.00 0.00 0.00 0.00
Pre-Funding Reserve Account 0.00 0.00 0.00 0.00
Less: Amount in excess of Required Deposit 0.00 0.00 0.00 0.00
Less: Amounts Distributed 0.00 0.00 0.00 0.00
Ending Account Balances 0.00 15,524,168.66 118,797.59 767,302.64
Available Amount to Certificate Holders 0.00 0.00 0.00 0.00
<CAPTION>
Revolving Certificate Master
Account Account Transferor Servicer
<S> <C> <C> <C> <C>
Beginning Account Balances 335,454.37 0.00 0.00 0.00
Interest Income 460.41 0.00 0.00 0.00
Collection Account
Lockbox Collections during the Collections Period 0.00 0.00 0.00 0.00
+ Retransfer Amt received from Retransfered Contracts 0.00 0.00 0.00 0.00
+ Income and gain from investment of Collection Acct 0.00 0.00 0.00 0.00
+ Amts rec from Transferor,Master Servicer or Subservicer 0.00 0.00 0.00 0.00
- - Late Pmt fees collected w/ respect to Contracts on Deposit 0.00 0.00 83.32 0.00
- - Supplemental Servicing Fee 0.00 0.00 0.00 0.00
- - Income and gain on investments of Collection Acct 0.00 0.00 5,794.18 0.00
- - Scheduled & Prepay Contract Principal 723,797.23 0.00 0.00 0.00
- - Amounts deposited with respect to Retransferred Contracts 0.00 0.00 0.00 0.00
Certificate Account
+ Withdrawals from Collection Account 0.00 690,186.07 0.00 0.00
+ Amounts received from the Transferor 0.00 0.00 0.00 0.00
+ Amounts received from Master Servicer or Subservicer 0.00 0.00 0.00 0.00
+ Withdrawals from Pre-Funding Reserve Account 0.00 43,437.92 0.00 0.00
+ Withdrawals from the Spread Account 0.00 0.00 0.00 0.00
+ Proceeds of any Contracts or Property 0.00 0.00 0.00 0.00
+ Income and gain on investment of the Cert Acct (460.41) 38,912.48 0.00 0.00
+ Amounts received from Certificate Insurer 0.00 0.00 0.00 0.00
+ Withdrawals from Revolving Acct or Pre-Funding Acct 0.00 0.00 0.00 0.00
- - Expenses of an Opinion of Counsel 0.00 0.00 0.00 0.00
- - Expenses of Master Servicer or Transferor 0.00 0.00 0.00 0.00
- - Pmts to Master servicer of Ins and Liquid Proceeds 0.00 0.00 0.00 0.00
- - Pmts to Transferor from Retransferred Contracts or property 0.00 0.00 0.00 0.00
Pre-Funding Reserve Account 0.00 0.00 0.00 0.00
Less: Amount in excess of Required Deposit 0.00 0.00 0.00 0.00
Less: Amounts Distributed 0.00 0.00 0.00 0.00
Ending Account Balances 1,059,251.60 772,536.47 5,877.50 0.00
Available Amount to Certificate Holders 0.00 772,536.47 0.00 0.00
</TABLE>
Certificate
Account Payment
Available Amount 772,536.47
Payments on Payment Date
Servicing Fee (84,740.97) 84,740.97
Trustee,Collateral Agent 0.00 0.00
and Custodian fees
Class A Interest 0.00 0.00
Class A Principal (327,566.95) 327,566.95
Certificate Insurer 0.00 0.00
Collateral Agent (Spread (18,060.17) 18,060.17
[Reserved] 0.00 0.00
Unreimbursed expenses
To the Trustee (342,168.38) 342,168.38
To Master Servicer 0.00 0.00
To Standby Servicer 0.00 0.00
To the Transferor 0.00 0.00
Class B Cert Holders 0.00 0.00
(A) Portfolio Performance Tests: Current: 1 Mo Previous 2 Mos Previous
(yes/no) (yes/no) (yes/no)
Trigger Event (Yes/No) no no no
Monthly
Delinquencies Delinquency
Delinquencies ACPB Ratio
2 Months Prior 0 0 0.000%
1 Month Prior: 1301312 50844580 2.559%
Current: 2,703,452 50,120,783 5.394%
2.651%
Maximum Delinquency Ratio 8.250%
Monthly Annual
Gross Defaulted Contracts Default Default
Defaults ACPB Rate Rate
2 Months Prior: 0 0 0.000% 0.000%
1 Month Prior: 0 51,012,307 0.000% 0.000%
Current: 70,086 50,482,681 0.139% 1.666%
0 0 0.046% 0.555%
Maximum Annualized Default Ratio
i) Month 1 through 24 18.00%
(iii) Month 25 through the remainder of the transaction 14.00%
Monthly Annual
Losses Loss Loss
Losses ACPB Rate Rate
2 Months Prior: 0 0 0.000% 0.000%
1 Month Prior: 0 51,012,307 0.000% 0.000%
Current: 2,204 50,482,681 0.004% 0.052%
0.001% 0.017%
Maximum Annualized Net Loss Rate
(i) Month 1 through 24 8.00%
(iii) Month 25 through the remainder of the transaction 6.00%
(B) Insurance Agreement Event of Defaults 1 Mo Previous 2 Mos
Previous
Current: (yes/no) (yes/no)
Event of Default (Yes/No) no no no
(1) Bankruptcy or insolvency of the Company, or the Seller;
(2) A default or a breach of a representation, warranty, or
covenant by the Company or the Seller under any of the
transaction documents which has not been cured
within the applicable grace period;
(3) Any claim for payment under the Certificate Policy;
(4) Delinquency Ratio is 11% or higher averaged
over the 3 previous Monthly Periods:
Monthly
Delinquencies Delinquency
Delinquencies ACPB Ratio
2 Months Prior 0 51,180,034 0.00000%
1 Month Prior: 1,301,312 50,844,580 2.55939%
Current: 2,703,452 50,120,783 5.39387%
0 0 2.65109%
Maximum Delinquency Ratio 11.00%
(5) The Default Rate average over the 3 previous Monthly
Periods exceeds 25% for month 1 through 24,
and 17% for the remainder othe transaction;
Monthly Annual
Defaults Default Default
Defaults ACPB Rate Rate
2 Months Prior: 0 0 0.000% 0.000%
1 Month Prior: 0 51,012,307 0.000% 0.000%
Current: 70,086 50,482,681 0.139% 1.666%
0.046% 0.555%
Maximum Annualized Default Ratio
(i) Month 1 through 24 25.00%
(iii) Month 25 through the remainder of the transaction 17.00%
(B) Insurance Agreement Event of defaults (Cont.)
(6) The Net Loss Rate averaged over the 3 previous Monthly
Periods exceeds 11% for month 1 through 24,
and 8% for the remainder of
Monthly Annual
Losses Loss Loss
Losses ACPB Rate Rate
2 Months Prior: 0 0 0.000% 0.000%
1 Month Prior: 0 51,012,307 0.000% 0.000%
Current: 2,204 50,482,681 0.004% 0.052%
0.017%
Maximum Annualized Net Loss Rate
(i) Month 1 through 12 11.00%
(iii) Month 25 through the remainder of the transaction 8.00%
(7) The Servicer Termination Events listed below:
Failure to deposit funds as requires under the no
Pooling and Servicing Agreement
Failure to deliver the Servicer's Certificate no
Breach of Servicer covenants no
Bankruptcy or insolvency of the Servicer no
Material breach of representations and warranties no
Certificate Insurer has not delivered a no
Servicer Extension Notice
Insurance Agreement Event of Default on no
this or other transactions
Claim under the policy no
Class A Interest Schedule
Opening Class A Principal Balance 62,098,000.00
Class A Interest Rate 6.33%
30/360*Class A Interest Rate 0.53%
Current Class A Interest Distribution 327,566.95
Prior Class A Interest Arrearage 0.00
Class A Interest Due 327,566.95
Current Class A Interest Arrearage 0.00
Class A Principal Schedule
Opening Class A Principal Balance 62,098,000.00
Scheduled Principal 520,273.14
Prepayments 200,029.09
Recoveries 3,495.00
(Less) Amounts reinvested (723,797.23)
0.00
Retransfers 0.00
0.00
Class A Share - 91% 0.00
Prepayment from Revolving Account 0.00
Prepayment From Pre-Funding Account 0.00
Prior Class A Arrearage 0.00
Class A Principal Due 0.00
Class A Principal Distribution 0.00
Current Class A Arrearage 0.00
Ending Class A Principal Balance after current Distribution 62,098,000.00
Servicing Fee Schedule
Beginning Collateral Balance50,844,580.07
Annual Servicing Rate 2.00%
Prior Servicing Fee Arrearag 0.00
Current Servicer Fee 84,740.97
Servicer Fee Due 84,740.97
Servicer Fee Paid 84,740.97
Current Servicing Fee Arrear 0.00
Trustee Fee Schedule
Annual Trustee Fee 0.00
Prior Trustee Fee Arrearage 0.00
Current Trustee Fee 0.00
Trustee Fee Due 0.00
Current Trustee Fee Arrearage 0.00
Certificate Insurer Schedule
Ending Class A Balance 62,098,000.00
Insurance Premium 0.349%
Insurance Premium Supplement 0.500%
Certificate Insurer Fee 18,060.17
Pre-Funding Account
Opening Balance 15,524,168.66
Monthly Originations 0.00
Withdrawal From Pre-Funding Account 0.00
Prepayment associated with end of Pre-Funding Period 0.00
Closing Balance 15,524,168.66
Revolving Account Schedule
Opening Balance 335,454.37
Amount Transfered from Collection Account 723,797.23
First Interim Balance 1,059,251.60
Withdrawal From Revolving Account 0.00
Second Interim Balance 1,059,251.60
Amount Transfered to Certificate Account 0.00
Prepayment Associated with Release from Revolving Ac 0.00
Ending Balance 1,059,251.60
Spread Account
Initial Collateral Balance 62098000
Opening Spread Account Balance 767302.64
Less Interest Earned -1806.77
Opening Spread Account Balance 767302.64
Required Balance Spread Account 1361840
Required Deposit to Spread Account 594537.36
Ending Spread Account Balance 1109471.02488
Cap 1,361,840.00
Lessor of (i) 2% of the sum of the initial
Collateral balance and the Pre-Funded Amount,
and (ii) the Floor Amount. If a Portfolio
Performance Test is violated and is continuing,
the amount in (i) above will equal the greater
of 7% of the collateral balance and (i).
If an Portfolio Performance Test is violated and
subsequently cured, the amount in (i) above
will revert to 2% of the sum of the initial collateral
balance and the Pre-Funded Amount. The
Portfolio Performance Tests will be deemed
cured if all of the Portfolio Performance Tests
are satisfied for 3 consecutive months.
If an insurance Agreement Event of Default has
occurred, there shall be no Spread Account Cap.
Insurance Agreement Events of Default
are not curable.
Floor 62,098,000.00
The Floor Amount at any time will be equal to
the greater of (i) the outstanding Class A
Certificate Balance, and (ii) $100,000
Class A Certificate Factor
Current Class A Balance 62,098,000
Initial Class A Balance 62,098,000
Certificate Factor: 1.00000000
Aggregate Contract Principal Balance 50,120,783
Class A Balance 62,098,000
Less: Revolving Account X 91% (963,919)
Prefunding Account (15,524,169) (16,488,088)
Recivable backed Certificates 45,609,912
A Investor Percentage 91.00%
Number
Amount Schedule of Accounts
Servicer Reconciliation
Opening Principal Balance
per World Omni (prior Month) 50,844,580.07 A 4,298
Add: New Accounts Transfered B-1 0
Less: Scheduled Principal Received (520,273.14)C-1
Prepaid Accounts (200,029.09)C-2 (30)
Repossessed Accounts C-3 0
Closing Principal Balance
per World Omni 50,054,191.91 D 4,268
ACPB/World Omni Reconciliation
Closing Principal Balance
per World Omni 50,054,191.91 4,268
Add: Non Liquidated Repo Inventory
deducted from Servicer balance but
not passed through to investor 66,590.93 0
Less: Over 90 Day Accounts in Servicer
Balance but previously passed through
to investors 0.00 0
Adjusted ACPB 50,120,782.84 4,268
ACPB Prior/Current Balance Reconciliation
Prior Month ACPB 50,844,580.07
Less: Scheduled Principal Received (520,273.14)
Prepaid Accounts (200,029.09)
Less: Liquidated Accounts
Current Month ACPB 50,124,277.84
Liquidated
Repo/Liquidated Accts Repo PrincipalPrincipal Repo Inventory
10/31/96 0.00 0.00 0.00
11/30/96 70,085.93 3,495.00 66,590.93
12/31/96 0.00 0.00 0.00
01/31/97 0.00 0.00 0.00
02/28/97 0.00 0.00 0.00
03/31/97 0.00 0.00 0.00
04/30/97 0.00 0.00 0.00
05/31/97 0.00 0.00 0.00
06/30/97 0.00 0.00 0.00
07/31/97 0.00 0.00 0.00
08/31/97 0.00 0.00 0.00
09/30/97 0.00 0.00 0.00
70,085.93 3,495.00 66,590.93
Over 90 Day Accounts New 90 Day AccTransfered 90 Day Inventory
10/31/96 0.00 0.00 0.00
11/30/96 0.00 0.00 0.00
12/31/96 0.00 0.00 0.00
01/31/97 0.00 0.00 0.00
02/28/97 0.00 0.00 0.00
03/31/97 0.00 0.00 0.00
04/30/97 0.00 0.00 0.00
05/31/97 0.00 0.00 0.00
06/30/97 0.00 0.00 0.00
07/31/97 0.00 0.00 0.00
08/31/97 0.00 0.00 0.00
09/30/97 0.00 0.00 0.00
0.00 0.00 0.00
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.
NATIONAL FINANCIAL AUTO
FUNDING TRUST
By: /s/ Keith B. Stein
Name: Keith B. Stein
Title: Secretary
Dated: December 31, 1996
