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): November 21, 1997
NATIONAL FINANCIAL AUTO FUNDING TRUST
(Exact name of registrant as specified in its charter)
Delaware 33-28829 9999
(State or Other Jurisdiction (Commission (Primary Standard Industrial
Identification Number) File Number) Classification Code Number)
One Park Place
621 N.W. 53rd Street
Boca Raton, FL 33487
(800) 999-7535
(Address and telephone number of Principal Executive Offices)
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 Registration Statement, File No.
33-28829, in connection with the Funding Trust's issuance of a series of Notes,
entitled National Auto Finance 1997-1 Trust Automobile Receivables-Backed Notes,
Series 1997-1 (the "Notes"), to be issued pursuant to an Indenture, dated as of
June 29, 1997, between (i) National Auto Finance 1997-1 Trust (the "Trust"), a
Delaware business trust formed pursuant to a Trust Agreement dated as of June
29, 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 1997-1 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 June 29, 1997
(the "Cut-off Date") of approximately $66,156,163.54 and certain additional
Receivables to the extent purchased by the Trust on or prior to October 30, 1997
with funds deposited in a Pre-Funding Account in the amount of approximately
$6,689,091.18.
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.
A. Monthly Report Information:
Aggregate distribution information for the current
distribution date September 21, 1997.
See Exhibit 1.
B. No delinquency in payment under the Certificate Guaranty
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 Guaranty Insurance Policy? NO
Amount:
E. Are there any developments with respect to the Certificate
Insurance Guaranty 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
Certificatholders: 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 Servicer Certificate dated November 21, 1997.
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-97
Pre-
Pre- Funding Revol-
Collect Funding Reserve Spread ving Cert Trans- Master
Acct Acct Acct Acct Acct Acct feror Servicer
1 0 24,651 84,413 2,274,301 0 0 0 0
2 28,004 378 10,188 0 0 0 0
3 2,594,836 0 0 0 0 0 0 0
4 0 0 0 0 0 0 0 0
5 11,003 0 0 0 0 0 0 0
6 0 0 0 0 0 0 0 0
7 -6,717 0 0 0 0 0 6,717 0
8 0 0 0 0 0 0 0 0
9 -11,003 0 0 -10,188 0 0 21,191 0
10 -1,599,755 0 0 0 0 1,599,755 0 0
11 0 0 0 0 0 0 0 0
12 -988,364 0 0 0 0 988,364 0 0
13 0 0 0 0 0 0 0 0
14 0 0 0 0 0 0 0 0
15 0 0 0 0 0 0 0 0
16 0 0 0 0 0 0 0 0
17 0 0 0 0 0 0 0 0
18 0 0 0 0 0 0 0 0
19 0 -28,004 -378 0 0 28,382 0 0
20 0 0 0 0 0 0 0 0
21 0 -24,651 0 0 0 24,651 0 0
22 0 0 0 0 0 0 0 0
23 0 0 0 0 0 0 0 0
24 0 0 0 0 0 0 0 0
25 0 0 0 0 0 0 0 0
26 0 0 0 0 0 0 0 0
27 0 0 -84,413 0 0 84,413 0 0
28 0 0 0 2,274,301 0 2,725,565 27,908 0
29 0 0 0 0 0 2,725,565 0 0
1Beginning Account Balances
2Interest Income
Collection Account
3Lockbox Collections during the Collections Period
4Add: Retransfer Amount received in respect of any Retransferred Contracts
5Add: Any income and gain from investments of funds in the Collection Acct
6Add: Amts received from Transferor, Master Servicer or any Subservicer
7Less: Late Payment fees collected with respect to the Contracts on Deposit
8Less: Supplemental Servicing Fee
9Less: Any income and gain on investments of deposits in Collection Acct
10Less: Scheduled, Prepay and Liquidated Contract Principal
11Less: Amounts deposited with respect to Retransferred Contracts
Certificate Account
12Add: Withdrawals from Collection Account
13Add: Amounts received from the Transferor
14Add: Amts received from the Master Servicer or Subservicer
15Add: Withdrawals from Revolving Account
16Add: Withdrawals from the Pre-Funding Reserve Account
17Add: Withdrawals from the Spread Account
18Add: Proceeds of any Contracts or Property
19Add: Any income & gain on investments of funds in Certificate Acct
20Add: Amounts received from Certificate Insurer
21Add: Withdrawals from the Revolving Account or Pre-Funding Account
22Less: Expenses of an Opinion of Counsel
23Less: Expenses of Master Servicer or Transferor
24Less: Payments to the Master servicer of Insurance and Liquidation Proceeds
25Less: Pmts to Transferor w/ respect to Retransferred Contracts or property
Pre-Funding Reserve Account
26Less: Amount in excess of Required Deposit
27Less: Amounts Distributed
28Ending Account Balances
29Available Amount to Certificate Holders
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-97
Cert
Account Payment
Available Amount 2,725,565 0
Payments on Payment Date
(i) Servicing Fee (104,089) 104,089
NAFI Operating Depository Account
First Union National Bank, Charlotte, NC
Acct #2010000259454 - ABA 053000219
(ii) Trustee, Collateral Agent 0 0
and Custodial fees
Harris Trust and Savings Bank
(iiia) Class A Interest (336,135) 336,135
(iiib) Class A Principal (1,480,428) 1,480,428
(iv) Certificate Insurer (19,085) 19,085
Financial Security Assurance
Morgan Guaranty Trust
Acct #000-33-345 ABA 021-000-238
(v) Collateral Agent (Spread Account) (0) 0
Harris Trust and Savings Bank
(va) [Reserved] 0 0
(vi) Unreimbursed expenses to the Trustee 0 0
(vii) Unreimbursed expenses to the Master Servicer 0 0
(viii) Unreimbursed expenses to the Standby Servicer 0 0
(ix) Unreimbursed expenses to the Transferor 0 0
(x) Class B Certificate Holders (785,827) 785,827
Pursuant to section 3.17 of the Pooling and Service Agreement dated as of
July 17,1997 among National Financial Auto Funding Trust, National Auto
Finance Company, Inc. and Harris Trust and Savings Bank, the undersigned, as
the Master Servicer, is providing the attached Monthly Statement for the
Collection Period 31-Oct-97
NATIONAL AUTO FINANCE COMPANY, INC.
as Master Servicer
Kevin Adams 23-Jul-99
Vice President - Chief Financial Officer
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-97
1 Month 2 Months
(A) Portfolio Performance Tests: Current: Previous Previous
(yes/no) (yes/no) (yes/no)
Trigger Event (Yes/No) no no no
Monthly
Delinquencies Delinquency
Delinquencies ACPB Ratio
2 Months Prior: 3,949,658 63,775,120 6.193%
1 Month Prior: 4,386,150 62,453,377 7.023%
Current: 4,333,966 68,177,182 6.357%
6.524%
Maximum Delinquency Ratio 8.25%
Monthly Annual
Gross Defaulted Contracts Default Default
Defaults ACPB Rate Rate
2 Months Prior: 253,671 64,398,182 0.39% 4.73%
1 Month Prior: 1,151,315 63,114,248 1.82% 21.89%
Current: 840,925 65,315,280 1.29% 15.45%
1.169% 14.022%
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: 5,993 64,398,182 0.01% 0.11%
1 Month Prior: 33,215 63,114,248 0.05% 0.63%
Current: 70,378 65,315,280 0.11% 1.29%
0.057% 0.679%
Maximum Annualized Net Loss Rate
(i) Month 1 through 24 8.00%
(iii) Month 25 through the remainder of the transaction 6.00%
Extensions Extensions Active Accts
2 Months Prior: 0 5,595
1 Month Prior: 46 5,491
Current: 118 5,894
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-97
1 Month 2 Months
(B) Insurance Agreement Event of Defaults Previous 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: 3,949,658 63,775,120 6.19%
1 Month Prior: 4,386,150 62,453,377 7.02%
Current: 4,333,966 68,177,182 6.36%
6.52%
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 of the transaction;
Monthly Annual
Defaults Default Default
Defaults ACPB Rate Rate
2 Months Prior: 253,671 64,398,182 0.39% 4.73%
1 Month Prior: 1,151,315 63,114,248 1.82% 21.89%
Current: 840,925 65,315,280 1.29% 15.45%
1.17% 14.02%
Maximum Delinquency Ratio
(i) Month 1 through 24 25.00%
(iii) Month 25 through the remainder of the transaction 17.00%
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-97
(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 the transaction;
Monthly Annual
Losses Loss Loss
Losses ACPB Rate Rate
2 Months Prior: 5,993 64,398,182 0.009% 0.112%
1 Month Prior: 33,215 63,114,248 0.053% 0.632%
Current: 70,378 65,315,280 0.108% 1.293%
0.057% 0.679%
Maximum Annualized Net Loss Rate
(i) Month 1 through 24 11.00%
(iii) Month 25 through the remainder of the transaction 8.00%
(7) The Servicer Termination Events listed below:
(i) Failure to deposit funds as required under the no
Pooling and Servicing Agreement
(ii) Failure to deliver the Servicer's Certificate no
(iii) Breach of Servicer covenants no
(iv) Bankruptcy or insolvency of the Servicer no
(v) Material breach of representations and warranties no
(vi) Certificate Insurer has not delivered a no
Servicer Extension Notice
(vii) Insurance Agreement Event of Default on no
this or other transactions
(viii) Claim under the policy no
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-97
Class A Interest Schedule
Opening Class A Principal Balance 63,521,664
Class A Interest Rate 6.35%
30/360*Class A Interest Rate 0.53%
Current Class A Interest Distribution 336,135
Prior Class A Interest Arrearage 0
Class A Interest Due 336,135
Current Class A Interest Arrearage 0
Class A Principal Schedule
Opening Class A Principal Balance 63,521,664
Scheduled Principal 901,978
Prepayments 484,419
Liquidated Contracts 213,359
Less: Principal write-up adjustment 0
1,599,755
Retransfers 0
1,599,755
Class A Share - 91% 1,455,777
Remaining Prefunding Account Balance 0
Principal due to Class A 1,455,777
Prepayment from Revolving Account 0
Prepayment From Pre-Funding Account 24,651
Prior Class A Arrearage 0
Class A Principal Due 1,480,428
Class A Principal Distribution 1,480,428
Current Class A Arrearage 0
Ending Class A Principal Balance after current Distribution 62,041,236
Servicing Fee Schedule
Beginning Collateral Balance 62,453,377
Annual Servicing Rate 2.00%
Prior Servicing Fee Arrearage 0
Current Servicer Fee 104,089
Servicer Fee Due 104,089
Servicer Fee Paid 104,089
Current Servicing Fee Arrearage 0
National Auto Finance 1997-1 Trust
National Auto Finance Company, Inc.
Monthly Servicer Certificate
Trustee Fee Schedule
Annual Trustee Fee 0
Prior Trustee Fee Arrearage 0
Current Trustee Fee 0
Trustee Fee Due 0
Current Trustee Fee Arrearage 0
Certificate Insurer Schedule
Ending Class A Balance 65,435,423
Insurance Premium 0.350%
Insurance Premium Supplement 0.50%
Certificate Insurer Fee 19,085
Pre-Funding Account
Opening Balance 24,651
Monthly Originations X 91% 0
Withdrawal From Pre-Funding Account -24,651
Prepayment associated w/ end of Pre-Funding Period 24,651
Closing Balance 0
Revolving Account Schedule
Opening Balance 0
Amount Transferred from Collection Account 0
First Interim Balance 0
Withdrawal From Revolving Account 0
Second Interim Balance 0
Amount Transferred to Certificate Account
Prepayment Associated with Release from Revolving Account 0
Ending Balance 0
Spread Account
Initial Collateral Balance 66,891,200
Opening Spread Account Balance 2,274,301
Less Interest Earned (10,188)
Opening Spread Account Balance 2,274,301
Required Balance Spread Account 2,274,301
Required Deposit to Spread Account 0
Ending Spread Account Balance 2,274,301
Cap 2,274,301
Floor 62,041,236
The Floor Amount at any time will be equal to
the greater of (i) the outstanding Class A
Certificate Balance, and (ii) $100,000
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-97
Class A Certificate Factor
Current Class A Balance 62,041,236
Initial Class A Balance 66,891,200
Certificate Factor: 0.927494736
Aggregate Contract Principal Balance 68,177,182
Class A Balance 62,041,236
Less: Revolving Account X 91% 0
Less: Prefunding Account 0
Over 92 Day Inventory X 91% 0 0
Receivable backed Certificates 62,041,236
A Investor Percentage 91.00%
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-97
Beginning of Transaction 07/21/97
Payment Date 11/21/97
Month of Transaction 4
Period Ended 10/31/97
Collection Account
Beginning Balance 0.00
Collections during the Collections Period 2,594,836.29
Retransfer Amt received in respect of any Retransferred Contracts 0.00
Any income & gain from investments of funds in Collection Acct 11,003.17
Amts received from Transferor, Master Servicer or any Subservicer 0.00
Late Payment Fees collected w/ respect to Contracts on Deposit 6,716.91
Supplemental Servicing Fee 0.00
Amounts deposited with respect to Retransferred Accounts 0.00
Scheduled Principal (During Revolving Period - Months 1 through 2) 901,977.71
Prepayments (During Revolving Period - Months 1 through 2) 484,418.54
Recoveries (During Revolving Period - Months 1 through 2) 142,981.03
Certificate Account
Amounts received from the Transferor 0.00
Amounts received from the Master Servicer or Subservicer 0.00
Withdrawals from the Pre-Funding Reserve Account 0.00
Withdrawals from the Spread Account 0.00
Proceeds of any Contracts or Property 0.00
Any income and gain on investments of funds in the Certificate Accou 0.00
Amounts received from Certificate Insurer (Claims to FSA) 0.00
Expenses of an Opinion of Counsel 0.00
Expenses of Master Servicer or Transferor 0.00
Payments to the Master servicer of Insurance and Liquidation Proceed 0.00
Payments to the Transferor with respect to Retransferred Contracts o 0.00
Pre-Funding Reserve Account
Beginning Balance 84,412.61
Amount in excess of Required Deposit 0.00
Interest Income 378.11
Certificate Insurer
Is there a claim on the policy in the current month, No
or has there ever been a claim?
Revolving Account
Beginning Balance 0.00
Transfers 0.00
Over 3.0 Million Principal
Remaining balance due to Investors 0.00
Interest Income 0.00
Pre-Funding Account
Beginning Balance 24,651.12
Interest Income 28,004.11
Spread Account
Beginning Balance 2,274,300.80
Interest Income 10,187.53
National Auto Finance 1997-1 Trust
Monthly Servicer Certificate
21-Nov-97
Number of loans currently owned by Trust 5,894
Initial Collateral Balance 66,891,200
New Originations Transferred to Trust 7,323,561
Initial Certificate Account Balance 0
Previous Servicing Fee Arrearage 0
Previous Trustee, Collateral Agent, 0
Lockbox and Custodian fees - Arrearage
Previous Class A Interest Arrearage 0
Unreimbursed expenses to the Trustee 0
Unreimbursed expenses to the Master Servicer 0
Unreimbursed expenses to the Standby Servicer 0
Unreimbursed expenses to the Transferor 0
Opening Class A Principal Balance 66,891,200
Prior Class A Principal Arrearage 0
1 Month 2 Months 3 Months
Current Prior Prior Prior
30+ Days Past Due 2,637,619 3,021,483 3,036,977 3,307,785
60+ Days Past Due 1,061,407 900,198 892,814 0
90+ Days Past Due 634,941 464,470 19,868 0
Delinquent (30+ days past due) 4,333,966 4,386,150 3,949,658 3,307,785
Current Month Repos 462,158 686,845 233,803 21,155
New over 90 Days 378,767 464,470 19,868 0
Defaults 840,925 1,151,315 253,671 21,155
Liquidated Contracts
Repos > 90 Days 3,531 0 0 0
Closed Repo's 209,828 120,888 24,994 14,454
Past Due > 120 Days 0 0 0 0
Chapter 13 Bankruptcy 0 0 0 0
Net Liquidated Accounts 213,359 120,888 24,994 14,454
Recoveries - net of expenses 142,981 87,673 19,001 10,923
Net Losses 70,378 33,215 5,993 3,531
ACPB 68,177,182 62,453,377 63,775,120 65,021,244
Principal Paid
08/21/97 1,032,777
09/21/97 1,133,973
10/21/97 1,202,786
3,369,536
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.
FINANCIAL ASSET SECURITIES CORPORATION
/s/ Name: Keith B. Stein
Secretary
Dated: November 30, 1997
