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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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): January 13, 1998
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NATIONAL FINANCIAL AUTO FUNDING TRUST
(Exact name of registrant as specified in its charter)
DELAWARE 33-28829 9999
(State of organization) (Commission File No.) (Primary Standard Industrial
Classification Code Number)
One Park Place
621 N.W. 53rd Street
Boca Raton, FL 33487
(800) 999-7535
(Address and telephone number of Registrant's principal executive offices)
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Item 5. OTHER EVENTS
Description of the Notes and the Receivables Pool
National Financial Auto Funding Trust (the "Funding Trust") will cause
to be filed with the Securities and Exchange Commission (the "Commission")
pursuant to the Commission's Rule 424 a Prospectus Supplement and the Prospectus
(together, the "Prospectus") filed as part of the Registration Statement on Form
S-3, File No. 333-28829 in connection with the Funding Trust's issuance of a
series of Notes, entitled National Auto Finance 1998-1 Trust Automobile
Receivables-Backed Notes, Series 1998-1 (the "Notes"), to be issued pursuant to
an Indenture, dated as of December 15, 1997, between (i) National Auto Finance
1998-1 Trust (the "Trust"), a Delaware business trust formed pursuant to a Trust
Agreement dated as of December 15, 1997 between Funding Trust, as depositor, and
Wilmington Trust Company, as Owner Trustee, and (ii) Harris Trust and Savings
Bank, as Trustee and Trust Collateral Agent. The Notes designated as the Series
1998-1 Notes will be secured by trust property consisting primarily of a
segregated pool (the "Receivables Pool") of non-prime motor vehicle retail
installment sale contracts (the "Receivables"), all of which are secured by new
or used automobiles, light-duty trucks, vans or minivans financed thereby. The
Receivables Pool will consist of Receivables having an aggregate principal
balance as of December 15, 1997 (the "Cut-off Date") of approximately
$75,504,414.69 and certain additional Receivables to the extent purchased by the
Trust on or prior to April 30, 1998 with funds deposited in a Pre-Funding
Account in the amount of approximately $16,490,982.64
Computational Materials
First Union Capital Markets Corp., as underwriter of the Notes (the
"Underwriter") has provided certain prospective purchasers of Notes with certain
computational materials (the "Computational Materials") in written form, which
Computational Materials are in the nature of data tables relating to the
structure and terms of the Notes and the hypothetical characteristics and
hypothetical performance of the Notes under certain assumptions and scenarios,
based on collateral information provided by National Auto Finance Company, Inc.
Consent of Independent Accountants
The financial statements of Financial Security Assurance Inc. and
subsidiaries included in certain documents filed by Financial Security Assurance
Holdings Ltd. with the Commission pursuant to the Securities Exchange Act of
1934, as amended, together with the report of Coopers & Lybrand L.L.P.,
independent accountants, with respect thereto were incorporated in the
Prospectus. The written consent of Coopers & Lybrand L.L.P. to the incorporation
of that firm's report into the Prospectus is filed as exhibit 23 hereto.
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Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Not applicable.
(b) Not applicable.
(c) Exhibits
Exhibit No. Description
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23 Consent of Coopers & Lybrand L.L.P., independent accountants,
to incorporation by reference into the Prospectus related
to the National Auto Finance 1998-1 Trust Automobile
Receivable-Backed Notes of that firm's report with respect
to certain financial statements of Financial Security
Assurance Inc. and subsidiaries.
99 Computational Materials (as defined in Item 5) that have
been provided by National Auto Finance Company, Inc. to
certain prospective purchasers of National Auto Finance
1998-1 Trust Automobile Receivables-Backed Notes.
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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.
Dated: January 15, 1998
NATIONAL FINANCIAL AUTO FUNDING TRUST
By: /s/ Keith B. Stein
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Name: Keith B. Stein
Title: Secretary
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INDEX TO EXHIBITS
Sequentially
Exhibit No. Description Numbered Page
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23 Consent of Coopers & Lybrand L.L.P.,
independent accountants, to incorporation
by reference into Prospectus related to the
National Auto Finance 1998-1 Trust Auto-
mobile Receivable-Backed Notes of that
firm's report with respect to certain financial
statements of Financial Security Assurance
Inc. and subsidiaries.
99 Computational Materials (as defined in
Item 5) that have been provided to certain
prospective purchasers of National Auto
Finance 1998-1 Trust Automobile
Receivables-Backed Notes
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[LETTERHEAD OF COOPERS & LYBRAND]
CONSENT OF INDEPENDENT ACCOUNTANTS
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We consent to the incorporation by reference in the Prospectus Supplement of
National Financial Auto Funding Trust relating to the National Auto Finance
1998-1 Trust of our report dated January 24, 1997 on our audits of the
consolidated financial statements of Financial Security Assurance Inc. and
Subsidiaries as of December 31, 1996 and 1995, and for each of the three years
in the period ended December 31, 1996. We also consent to the reference to our
Firm under the caption "Experts".
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
New York, New York
January 9, 1998
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ABS Prepayment Speed
Distribution Date 0.00% 0.25% 0.50% 0.75% 1.00%
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Closing 100.00% 100.00% 100.00% 100.00% 100.00%
Jan-98 98.99% 98.79% 98.59% 98.38% 98.16%
Feb-98 97.90% 97.49% 97.07% 96.64% 96.20%
Mar-98 96.72% 96.08% 95.43% 94.77% 94.10%
Apr-98 95.44% 94.57% 93.69% 92.79% 91.88%
May-98 94.15% 93.05% 91.94% 90.81% 89.66%
Jun-98 92.83% 91.52% 90.18% 88.83% 87.45%
Jul-98 91.49% 89.97% 88.42% 86.85% 85.24%
Aug-98 90.13% 88.41% 86.65% 84.86% 83.04%
Sep-98 88.75% 86.83% 84.87% 82.88% 80.86%
Oct-98 87.35% 85.24% 83.09% 80.90% 78.68%
Nov-98 85.93% 83.63% 81.30% 78.92% 76.51%
Dec-98 84.48% 82.01% 79.50% 76.95% 74.35%
Jan-99 83.01% 80.37% 77.69% 74.97% 72.20%
Feb-99 81.52% 78.72% 75.88% 72.99% 70.06%
Mar-99 80.00% 77.06% 74.06% 71.02% 67.93%
Apr-99 78.46% 75.37% 72.24% 69.05% 65.81%
May-99 76.89% 73.67% 70.41% 67.08% 63.70%
Jun-99 75.30% 71.96% 68.57% 65.12% 61.61%
Jul-99 73.68% 70.23% 66.72% 63.15% 59.52%
Aug-99 72.04% 68.48% 64.87% 61.19% 57.45%
Sep-99 70.37% 66.72% 63.01% 59.23% 55.40%
Oct-99 68.67% 64.94% 61.14% 57.28% 53.35%
Nov-99 66.95% 63.14% 59.27% 55.33% 51.32%
Dec-99 65.20% 61.32% 57.38% 53.38% 49.31%
Jan-00 63.42% 59.49% 55.50% 51.44% 47.31%
Feb-00 61.61% 57.64% 53.60% 49.50% 45.33%
Mar-00 59.77% 55.77% 51.70% 47.57% 43.36%
Apr-00 57.91% 53.89% 49.80% 45.64% 41.41%
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May-00 56.01% 51.98% 47.88% 43.72% 39.48%
Jun-00 54.09% 50.06% 45.96% 41.80% 37.57%
Jul-00 52.13% 48.12% 44.04% 39.89% 35.68%
Aug-00 50.14% 46.16% 42.10% 37.99% 33.80%
Sep-00 48.12% 44.18% 40.17% 36.09% 31.95%
Oct-00 46.07% 42.18% 38.22% 34.20% 30.11%
Nov-00 43.99% 40.16% 36.27% 32.32% 28.30%
Dec-00 41.87% 38.12% 34.31% 30.44% 26.51%
Jan-01 39.72% 36.06% 32.35% 28.58% 24.74%
Feb-01 37.53% 33.98% 30.38% 26.72% 23.00%
Mar-01 35.31% 31.88% 28.40% 24.87% 21.28%
Apr-01 33.05% 29.76% 26.42% 23.03% 19.58%
May-01 30.76% 27.62% 24.44% 21.20% 17.91%
Jun-01 28.43% 25.46% 22.44% 19.38% 16.27%
Jul-01 26.06% 23.28% 20.45% 17.57% 14.66%
Aug-01 23.66% 21.07% 18.44% 15.78% 13.07%
Sep-01 21.21% 18.84% 16.43% 13.99% 11.51%
Oct-01 18.73% 16.59% 14.42% 12.22% 9.98%
Nov-01 16.21% 14.32% 12.40% 10.46% 8.49%
Dec-01 13.65% 12.02% 10.38% 8.71% 7.02%
Jan-02 11.05% 9.71% 8.35% 6.98% 5.59%
Feb-02 8.40% 7.36% 6.32% 5.26% 4.19%
Mar-02 5.71% 5.00% 4.28% 3.56% 2.82%
Apr-02 2.98% 2.61% 2.24% 1.87% 1.49%
May-02 2.50% 2.19% 1.87% 1.55% 1.23%
Jun-02 2.02% 1.76% 1.50% 1.23% 0.97%
Jul-02 1.53% 1.32% 1.12% 0.92% 0.72%
Aug-02 1.02% 0.89% 0.75% 0.61% 0.47%
Sep-02 0.51% 0.44% 0.37% 0.31% 0.24%
Oct-02 0.17% 0.15% 0.13% 0.10% 0.08%
Nov-02 0.00% 0.00% 0.00% 0.00% 0.00%
Average Life 2.50 2.38 2.26 2.14 2.01
