SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10 - K
Annual Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the fiscal year ended: Commission file number:
December 31, 1996 333-1682
Chevy Chase Home Loan Trust 1996-1
____________________________________________________
(Exact name of registrant as specified in charter)
Maryland 52-0897004
________________________________ ________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o Chevy Chase Bank, F.S.B.
8401 Connecticut Avenue
Chevy Chase, Maryland 20815
________________________________________ __________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (301) 986-7000
________________
Securities registered pursuant to Section 12(b) of the Act:
None
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark whether the Registrant has (1) filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required
to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
_____ _____
The Registrant has no voting stock or class of common stock
outstanding as of the date of this report.
Page 1
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Introductory Note
Chevy Chase Bank, F.S.B. (the "Bank")is the seller and servicer under the
Pooling and Servicing Agreement (the "Agreement"), dated as of
June 1, 1995, by and between the Bank and Norwest Bank Minnesota,
National Association, as the trustee. The Certificates listed on page 1
hereof will be referred to collectively herein as the "Certificates".
The Certificates do not represent obligations of or interests in the Bank.
By letter dated August 7, 1995, the Bank has requested an exemption
from certain reporting and information requirements under the
Exchange Act. Pending resolution of such request, the Bank intends
to provide information in a manner consistent with such application.
Accordingly, certain items of Form 10-K are designated below as
"Not Applicable", and with respect to the remaining items the Bank is
providing the information set forth below.
Part I
Item 1 Business
Not Applicable
Item 2 Properties
See the Annual Report filed pursuant to Item 14 Below.
Item 3 Legal Proceedings
None
Item 4 Submission Of Matters To A Vote Of Security Holders
None
Page 2
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Part II
Item 5 Market For Registrant's Common Equity
And Related Stockholder Matters
Each of the Certificates, representing investors' interests
in the Trust, are represented by a single certificate
registered in the name of Cede & Co., the nominee of
The Depository Trust Company. Accordingly, Cede & Co.
is the sole holder of record of the Certificates, which it
held on behalf of approximately 27 brokers, dealers,
banks and other direct participants in the DTC system at
December 31, 1996.
To the best knowledge of the Registrant, there is no
established public trading market for the Certificates.
Item 6 Selected Financial Data
Not Applicable
Item 7 Management's Discussion and Analysis of Financial
Condition and Results of Operations
Not Applicable
Item 8 Financial Statements and Supplementary Data
Not Applicable
Item 9 Changes In And Disagreements With Accountants
On Accounting and Financial Disclosure
None
Part III
Item 10 Directors and Executive Officers of the Registrant
Not Applicable
Item 11 Executive Compensation
Not Applicable
Page 3
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Item 12 Security Ownership Of Certain Beneficial Owners
and Management
Each of the Certificates, representing investor's interests in the
Trust, are represented by a single certificate registered in the
name of Cede & Co., the nominee of the Depository Trust
Company("DTC"), and an investor holding an interest in the Trust
is not entitled to receive a Certificate representing such interest
except in certain limited circumstances. Accordingly, Cede & Co.
is the sole holder of record of the Certificates, which it held on
behalf of approximately 27 brokers, dealers, banks and other
direct participants in the DTC system at December 31, 1995.
Such direct participants may hold Certificates for their own
accounts or for the accounts of their customers. The following
table sets forth, with respect to each of the Certificates, the
identity of each direct DTC participant that holds positions in
such Certificate in excess of 5% of the outstanding principal
amount thereof at December 31, 1996.
$ 153,521,000 7.15% Home Loan Receivables Backed Certificates:
Aggregate Amount of Percent of
Name Certificates Held Class
Bank of New York 37,700,000 24.6%
Boston Safe Deposit & Trust. 13,350,000 8.7%
Chase Manhattan Bank/ Chemi 19,750,000 12.9%
SSB-Custodian 29,550,000 19.2%
Citibank, N.A. 14,071,000 9.2%
The address of each of the above participants is:
C/O The Depository Trust Company
7 Hanover Square, 22nd Floor
New York, NY 10004
Item 13 Certain Relationships and Related Transactions
None
Page 4
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Part IV
Item 14 Exhibits, Financial Statement Schedules and Reports
On Form 8-K
(a) The following documents are filed as part of this Report:
i) Summary of annual distributions on the Certificates to
Certificateholders for the year ended December 31, 1996.
ii) Annual Accountant's Report dated December 20, 1996
and related Report of Management dated December 20, 1996
relating to sufficiency of accounting controls
No proxy soliciting material has been distributed by
the Trust.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
Chevy Chase Home Loan Trust 1996-1
By: Chevy Chase Bank, F.S.B.
As Seller and Servicer
Joel A. Friedman
Date: 03/31/97 By: ___________________________________________
Joel A. Friedman
Senior Vice President
and Controller
Page 5
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ANNUAL REPORT
Chevy Chase Auto Receivables Trust 1995-2
$ 247,582,941.13 5.80% Auto Receivables Backed Certificates
For the Year Ended December 31, 1996
<TABLE>
Annual Report-Chevy Chase Auto Receivables Trust 1995-2
<CAPTION>
May-96 Jun-96 Jul-96 Aug-96 Sep-96 Oct-96 Nov-96 Dec-96
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Dist of Prin 0 0 0 0 0 0 0 0
Dist of Int 0 396,383 914,729 914,729 914,729 914,729 914,729 914,729
Serv Fee 0 114,207 110,750 113,037 111,948 110,762 111,681 107,915
Trustee Fee 0 167 167 167 167 167 167 167
Net Losses 0 0 15,425 0 101,581 414,687 412,615 570,788
Net Loss % 0.00% 0.00% 0.12% 0.00% 0.79% 3.24% 3.23% 4.46%
Delinquencies:
30+ Delq. 1,240,726 1,451,124 2,731,975 3,385,227 3,651,591 4,292,539 4,416,459 5,753,240
Delq. % 0.82% 0.98% 1.87% 2.35% 2.59% 3.12% 3.29% 4.40%
</TABLE>
Page 6
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MANAGEMENT'S REPORT ON THE EFFECTIVENESS OF THE
INTERNAL
CONTROL STRUCTURE RELATIVE TO THE SERVICING OF
HOME LOANS
The management of the Bank is responsible for establishing and
maintaining the internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of control procedures.
The objectives of an internal control structure are to provide management
with reasonable, but not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition, and that transactions
are executed in accordance with management's authorization and recorded
properly to permit the preparation of financial statements in accordance
with generally accepted accounting principles.
We have performed an evaluation of the effectiveness of the Bank's
internal control structure based on the criteria established in Internal
Control - Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission ("COSO") relative to the
servicing of home loans owned by Chevy Chase Home Loan Trust 1996-1 as
of September 30, 1996, and we have determined that the Bank maintained
an effective internal control structure over financial reporting relative
to the servicing of home loans owned by Chevy Chase Home Loan Trust 1996-1
as of
September 30, 1996.
However, there are inherent limitations in the effectiveness of any
internal control structure, including the possibility of human error and
the circumvention or overriding of controls. Accordingly, even an
effective internal control structure can provide only reasonable
assurance with respect to reliability of financial statements and
safeguarding and management of assets. Furthermore, the effectiveness
of any internal control structure can change with changes in
circumstances.
John C. Harley George P. Clancy
______________ ________________
John C. Harley George P. Clancy
Senior Vice President Executive Vice President
Stephen R. Halpin, Jr.
_______________________
Stephen R. Halpin, Jr.
Executive Vice President
Chief Financial Officer
December 20, 1996
Page 7
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Directors of
Chevy Chase Bank, F.S.B.:
We have examined management's assertion, included in the accompanying
Management's Report on the Effectiveness of the Internal Control Structure
Relative to the Servicing of Home Loan Receivables, that Chevy Chase
Bank, F.S.B. (the "Bank") maintained an effective internal control
structure over financial reporting relative to the servicing of home loan
receivables owned by the Bank's home loan trust 1996-1 (the "Trust") as
of September 30, 1996.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly,
included obtaining an understanding of the internal control structure
over financial reporting, testing, and evaluating the design and
operating effectiveness of the internal control structure, and such other
procedures as we considered necessary in the circumstances. We believe
that our examination provides a reasonable basis for our opinion.
Because of inherent limitations in any internal control structure, errors
or irregularities may occur and not be detected. Also, projections of
any evaluation of the internal control structure over financial reporting
to future periods are subject to the risk that the internal control
structure may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
In our opinion, management's assertion that the Bank maintained an
effective internal control structure over financial reporting relative
to the servicing of home loan receivables owned by the Bank's home loan
Trust as of September 30, 1996, is fairly stated, in all material
respects, based upon criteria established in Internal Control -
Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO).
This report is intended solely for the information and use of the board
of directors and management of the Bank, Norwest Bank Minnesota, N.A.,
and Capital Markets Assurance Corporation, and should not to be used for
any other purpose.
Arthur Andersen LLP
Washington, D.C.
December 20, 1996
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