<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
[X] Annual Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934
For the Fiscal Year Ended December 31, 1995
-----------------
[ ] Transition Report Pursuant to Section 13 or 15(d) for the Securities
Exchange Act of 1934
For the transition period from to .
---------- ----------
Commission File Number 0-13199
-------
RYLAND ACCEPTANCE CORPORATION FOUR
- ------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Virginia 52-1402921
- --------------------------------- ----------------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
11000 Broken Land Parkway, Columbia, Maryland 21044-3562
- --------------------------------------------- --------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (410) 715-7800
--------------
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 (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding twelve 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 * No .
----- ------
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. * .
------
Aggregate market value of voting stock held by non affiliates of the
registrant as of the latest practicable date, March 30, 1996: NONE
As of March 30, 1996, the latest practicable date, 10,000 shares of Ryland
Acceptance Corporation Four common stock were outstanding.
The registrant meets the conditions set forth in General Instruction J(1) (a)
and (b) of Form 10-K and is therefore furnishing the abbreviated narrative
disclosure specified in Paragraph (2) of General Instruction J.
<PAGE>
RYLAND ACCEPTANCE CORPORATION FOUR
FORM 10-K
INDEX
Page Number
- ------------------------------------------------------------------------------
PART I.
Item 1. Business 3-21
Item 2. Properties 21
Item 3. Legal Proceedings 21
Item 4. Submission of Matters to a Vote of Security Holders 21
PART II.
Item 5. Market for Registrant's Common Equity and Related
Stockholder Matters 21
Item 6. Selected Financial Data 21
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations 22-24
Item 8. Financial Statements and Supplementary Data 25-39
Item 9. Changes In and Disagreements With Accountants
on Accounting and Financial Disclosure 40
PART III.
Item 10. Directors and Executive Officers of the Registrant 40
Item 11. Executive Compensation 40
Item 12. Security Ownership of Certain Beneficial Owners and
Management 40
Item 13. Certain Relationships and Related Transactions 40
PART IV.
Item 14. Exhibits, Financial Statement Schedules and
Reports on Form 8-K 40-55
SIGNATURES 56
SUPPLEMENTAL INFORMATION 57
INDEX OF EXHIBITS 58
<PAGE>
PART I
ITEM 1. BUSINESS:
Ryland Acceptance Corporation Four (the "Company") was incorporated in
Virginia on February 12, 1985 and is a wholly owned subsidiary of LPS Holdings
Corporation (LPS) and an indirect, wholly owned subsidiary of The Ryland
Group, Inc. (Ryland). Ryland is a diversified homebuilding and mortgage-
finance company.
The Company was formed solely for the purpose of facilitating the long-term
financing of mortgage loans. The Company issues collateralized mortgage-
backed bonds (the "bonds") in series and uses the net proceeds from the sale
of the bonds to: 1) purchase mortgage collateral from Ryland Mortgage Company
(RMC), a wholly owned subsidiary of Ryland, 2) purchase mortgage collateral
from other homebuilders or financial institutions and 3) fund loans secured by
mortgage collateral to limited-purpose subsidiaries of homebuilders or
financial institutions participating in the issuance of the bonds.
The Company has issued and recorded in the financial statements, 43 series of
bonds with an initial principal amount of $4.34 billion as of December 31,
1995. In 1988, certain classes within 27 of the original 43 series of bonds
with mortgage collateral of $516 million were sold to Resource Mortgage
Capital, Inc., formerly RAC Mortgage Investment Corporation, a publicly held
real estate investment trust. Also included in the sale were certain residual
cash flows of various bond series. The related mortgage collateral and bond
balances are not included in the financial statements as described below.
In addition, as of December 31, 1995, the Company has issued 56 series of
bonds with an original principal balance of $12.03 billion under a program
initiated during 1987 whereby the Company uses its shelf registration to issue
bonds on behalf of other companies. These bonds and the associated mortgage
collateral are excluded from the consolidated financial statements of the
Company since the issuance of these bonds has been accounted for as a sale of
the associated mortgage collateral in accordance with generally accepted
accounting principles.
During 1994, the Company acquired bonds of $12.8 million and the related
collateral from another company. These bonds had previously been issued from
the Company's shelf registration and accounted for as a sale under generally
accepted accounting principles.
It is anticipated that regular payments under the terms of the mortgages, as
well as early mortgage retirements, will reduce the number of mortgages and
amount of bonds outstanding in future years. The Company does not anticipate
the issuance of additional series of bonds.
<PAGE>
On February 13, 1985, the Company filed an initial registration statement
under the Securities Act of 1933 with the Securities and Exchange Commission
(SEC), providing for the issuance of bonds in series. Registration statements
have been filed as follows:
<TABLE>
Aggregate Principal
Amount of Collateralized
Mortgage Bonds
Date of Registration (dollars in thousands)
------------------------ -----------------------------
<S> <C>
February 13, 1985 $ 500,000
October 2, 1985 500,000
January 31, 1986 500,000
April 9, 1986 1,000,000
August 25, 1986 500,000
October 9, 1986 500,000
November 19, 1986 1,000,000
January 30, 1987 1,500,000
June 29, 1987 1,000,000
October 25, 1987 1,000,000
December 3, 1987 1,000,000
April 29, 1988 1,000,000
June 16, 1988 1,000,000
July 27, 1988 1,000,000
October 18, 1988 2,000,000
January 9, 1989 2,000,000
March 11, 1991 1,000,000
------------
$17,000,000
============
</TABLE>
At December 31, 1995, the Company had $626.2 million of bonds remaining for
issuance under a registration statement filed with the Securities and Exchange
Commission. Bonds sold in private placements do not reduce the remaining
issuance shelf. Since inception, the amount of bonds issued in private
placements was $.9 million.
The bonds are secured by mortgage collateral which is comprised of GNMA
certificates guaranteed by the Government National Mortgage Association,
mortgage participation certificates issued by the Federal Home Loan Mortgage
Corporation, guaranteed mortgage pass-through certificates issued by the
Federal National Mortgage Association, other mortgage certificates issued by
private companies, mortgage loans secured by first mortgages or deeds of trust
and funds held by trustee (collectively, the "mortgage collateral"). The
mortgage collateral is pledged to Bank of New York, (the "Trustee"), under an
Indenture. The mortgage loans constituting the mortgage collateral are either
insured by the Federal Housing Administration, partially insured by private
mortgage insurance or partially guaranteed by the U.S. Veterans
Administration. The bonds are not guaranteed or insured by Ryland, RMC, LPS
or any other affiliated entities.
Certain series of bonds are secured by mortgage collateral beneficially owned
by a finance company. Pursuant to a funding agreement, the finance company
pledges mortgage collateral and certain other collateral to the Company to
secure a note receivable in an amount equal to the collateral value, as
defined in the Indenture, of the pledged mortgage collateral and bearing
interest generally at the weighted average interest rate of the applicable
bond series. The Company assigns each funding agreement to the Trustee as
security for the applicable bond series.
<PAGE>
Each series of bonds is secured by mortgage collateral with an aggregate
collateral value of not less than the outstanding principal amount of the
bonds of that series. Additionally, the bonds of a series may be further
secured by one or more of the following: 1) cash or letters of credit to fund
a buy-down fund for a series secured by one or more buy-down mortgage loans;
2) cash or letters of credit to fund a special reserve fund for certain series
secured by mortgage loans; 3) mortgage pool insurance; 4) special hazard
insurance; 5) mortgagor bankruptcy insurance; 6) master servicing agreement;
7) servicing agreements; 8) cash to fund other accounts and reserves; and 9)
additional mortgage collateral.
During 1991, RMC assumed the Company's obligation to maintain cash deposits
with the Trustee for mortgagor bankruptcy risk associated with the mortgage
collateral. At December 31, 1995 and 1994, cash deposits of $.2 million and
$1.7 million, respectively, were maintained by RMC.
The Company competes in a national market with other private conduits, thrift
institutions and financial firms. Economic conditions, interest rates,
prepayment speeds, regulatory changes and market dynamics all influence the
market for collateralized mortgage bonds.
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized 1-A 11.625% $25,000 $0 05/01/93
Mortgage Bonds 1-B 12.625% 49,000 0 05/01/99
Series 1, Issued 1-C 12.625% 12,000 0 05/01/00
4/25/85: 1-D 12.625% 14,000 2,778 05/01/15
-----------------------
100,000 2,778
-----------------------
Collateralized 2-A 9.900% 33,000 0 04/01/94
Mortgage Bonds 2-B 11.000% 44,000 0 07/01/99
Series 2, Issued 2-C 11.200% 16,500 0 10/01/00
6/26/85: 2-D 11.600% 16,500 3,620**** 07/01/15
-----------------------
110,000 3,620
-----------------------
Collateralized 3-A 9.500% 26,000 0 03/01/94
Mortgage Bonds 3-B 10.800% 20,000 0 03/01/97
Series 3, Issued 3-C 11.600% 63,000 0 06/01/03
8/28/85: 3-D 11.650% 11,000 4,908 09/01/15
-----------------------
120,000 4,908
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 4-A 10.450% 37,500 0 02/01/96
Mortgage Bonds 4-B 11.400% 25,000 0 08/01/99
Series 4, Issued 4-C 11.400% 24,000 0 11/01/01
10/30/85: 4-D 11.400% 13,500 4,195 11/01/15
-----------------------
100,000 4,195
-----------------------
Collateralized 5-A 9.900% 19,500 0 11/01/93
Mortgage Bonds 5-B 10.700% 19,500 0 11/01/97
Series 5, Issued 5-C 11.250% 53,500 0 11/01/03
10/30/85: 5-D 11.200% 11,500 2,130 11/01/15
-----------------------
104,000 2,130
-----------------------
Collateralized 6-A 9.500% 47,600 0 10/01/96
Mortgage Bonds 6-B 10.600% 30,700 0 01/01/00
Series 6, Issued 6-C 10.750% 28,100 0 07/01/02
12/19/85: 6-D 10.750% 15,900 4,821**** 01/01/16
-----------------------
122,300 4,821
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 7-A 9.800% 44,900 0 01/01/97
Mortgage Bonds 7-B 10.550% 30,800 0 07/01/00
Series 7, Issued 7-C 10.700% 31,900 0 01/01/03
12/19/85: 7-D 10.750% 16,400 5,200**** 01/01/16
-----------------------
124,000 5,200
-----------------------
Collateralized 8-A 9.350% 46,600 0 09/01/96
Mortgage Bonds 8-B 9.950% 30,900 0 03/01/00
Series 8, Issued 8-C 10.150% 26,400 0 12/01/02
2/27/86: 8-D 10.150% 15,600 6,423 03/01/16
-----------------------
119,500 6,423
-----------------------
Collateralized 9-A 9.250% 61,000 0 03/01/04
Mortgage Bonds 9-B 9.950% 30,000 0 03/01/07
Series 9, Issued 9-C 9.950% 6,000 0 03/01/12
2/27/86: 9-D 10.000% 3,000 6,257 03/01/16
-----------------------
100,000 6,257
-----------------------
</TABLE>
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized 10-A 8.950% $10,300 $0 03/01/94
Mortgage Bonds 10-B 9.350% 13,200 0 06/01/99
Series 10, Issued 10-C 9.850% 28,400 0 09/01/05
2/27/86: 10-D 10.000% 6,100 5,324 03/01/16
-----------------------
58,000 5,324
-----------------------
Collateralized 11-A 8.550% 42,000 0 02/01/96
Mortgage Bonds 11-B 8.800% 36,000 0 02/01/00
Series 11, Issued 11-C 8.900% 15,000 0 05/01/01
4/29/86: 11-D 8.900% 20,000 0 02/01/14
11-E 8.900% 27,000 6,989 05/01/16
-----------------------
140,000 6,989
-----------------------
Collateralized 12-A 8.700% 37,600 0 08/01/03
Mortgage Bonds 12-B 8.800% 18,600 0 08/01/06
Series 12, Issued 12-C 9.200% 39,000 0 02/01/11
4/29/86: 12-D 9.350% 4,800 9,514 05/01/16
-----------------------
100,000 9,514
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 13-A 8.250% 19,950 0 08/01/93
Mortgage Bonds 13-B 8.450% 21,000 0 02/01/98
Series 13, Issued 13-C 8.600% 8,050 0 05/01/99
4/29/86: 13-D 8.550% 21,000 10,659 05/01/16
-----------------------
70,000 10,659
-----------------------
Collateralized 14-A 8.550% 56,150 0 03/01/05
Mortgage Bonds 14-B 9.400% 26,730 0 12/01/10
Series 14, Issued 14-C 9.400% 12,220 0 12/01/12
5/29/86: 14-D 9.000% 33,400 8,617 06/01/16
-----------------------
128,500 8,617
-----------------------
Collateralized 15-A 8.650% 23,450 0 06/01/04
Mortgage Bonds 15-B 8.950% 18,850 0 06/01/09
Series 15, Issued 15-C 9.000% 32,100 0 12/01/13
5/29/86: 15-D 9.000% 25,600 9,581 06/01/16
-----------------------
100,000 9,581
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 16-A 9.350% 41,550 0 07/01/05
Mortgage Bonds 16-B 9.750% 21,450 0 10/01/10
Series 16, Issued 16-C 9.750% 10,500 0 10/01/12
6/26/86: 16-D 9.750% 31,000 8,268**** 07/01/16
-----------------------
104,500 8,268
-----------------------
Collateralized 17-A 9.000% 35,125 0 01/01/98
Mortgage Bonds 17-B 9.000% 26,550 0 04/01/02
Series 17, Issued 17-C 9.000% 15,400 0 01/01/04
6/26/86: 17-D 9.000% 15,425 21,153**** 07/01/16
-----------------------
92,500 21,153
-----------------------
</TABLE>
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized 18-A 8.900% $78,100 $0 02/01/02
Mortgage Bonds 18-B 9.700% 42,425 0 11/01/06
Series 18, Issued 18-C 9.700% 20,925 0 11/01/08
7/31/86: 18-D 9.700% 6,550 0 08/01/14
18-E 9.375% 32,000 13,191 08/01/16
-----------------------
180,000 13,191
-----------------------
Collateralized 19-A 8.500% 59,920 0 09/01/01
Mortgage Bonds 19-B 9.600% 35,525 0 12/01/05
Series 19, Issued 19-C 9.700% 19,255 0 09/01/07
8/28/86: 19-D 9.375% 18,000 0 03/01/09
19-E 9.700% 8,500 9,729 09/01/16
-----------------------
141,200 9,729
-----------------------
Collateralized 20-A 7.700% 17,775 0 10/01/96
Mortgage Bonds 20-B 8.500% 17,660 0 07/01/01
Series 20, Issued 20-C 9.000% 38,600 3,388**** 01/01/08
9/25/86: 20-D 9.000% 7,965 18,144**** 10/01/16
-----------------------
82,000 21,532
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 21-A 7.900% 41,500 0 10/01/99
Mortgage Bonds 21-B 9.450% 88,500 0 04/01/10
Series 21, Issued 21-C 9.125% 36,250 1,784**** 10/01/12
9/25/86: 21-D 9.450% 4,750 11,270**** 10/01/16
-----------------------
171,000 13,054
-----------------------
Collateralized 22-A 7.850% 30,300 0 04/01/02
Mortgage Bonds 22-B 8.550% 24,300 0 01/01/07
Series 22, Issued 22-C 9.450% 40,600 0**** 07/01/11
9/25/86: 22-D 9.450% 4,800 9,954**** 10/01/16
-----------------------
100,000 9,954
-----------------------
Collateralized 23-A * 47,000 0 11/01/00
Mortgage Bonds 23-B 9.375% 88,500 0 08/01/10
Series 23, Issued 23-C 9.200% 42,500 1,628 05/01/13
10/30/86: 23-D 9.500% 5,000 11,640 11/01/16
-----------------------
183,000 13,268
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized
Mortgage Bonds 24-A 7.950% 110,900 0 02/01/02
Series 24, Issued 24-B 8.950% 80,800 37,148 08/01/06
10/29/86: 24-C 9.000% 8,300 18,491 11/01/09
-----------------------
200,000 55,639
-----------------------
Collateralized 25-A 8.200% 19,235 0 11/01/06
Mortgage Bonds 25-B 9.125% 11,165 0 11/01/10
Series 25, Issued 25-C 9.125% 18,830 6,944 02/01/15
10/29/86: 25-D 9.125% 770 1,735 11/01/16
-----------------------
50,000 8,679
-----------------------
</TABLE>
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized
Mortgage Bonds 26-A 7.900% 40,000 0 12/01/01
Series 26, Issued 26-B 9.000% 34,000 1,318 03/01/07
11/26/86: 26-C 9.000% 9,500 21,164 12/01/16
-----------------------
83,500 22,482
-----------------------
Collateralized 27-A 7.300% 15,400 0 12/01/93
Mortgage Bonds 27-B * 37,350 0 09/01/01
Series 27, Issued 27-C 9.300% 70,600 0 12/01/10
11/26/86: 27-D 9.250% 40,100 4,181 12/01/13
27-E 9.450% 3,550 8,228 12/01/16
-----------------------
167,000 12,409
-----------------------
Collateralized
Mortgage Bonds
Series 28, Issued 28-A-1 11.500% 86,000 8,629 12/25/16
12/18/86: 28-B-2 7.250% 117,000 11,739 12/25/16
-----------------------
203,000 20,368
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 29-A 7.100% 18,300 0 05/01/97
Mortgage Bonds 29-B 7.800% 16,200 0 11/01/01
Series 29, Issued 29-C 8.500% 37,450 6,486 08/01/08
1/29/87: 29-D 8.600% 8,050 16,950 02/01/17
-----------------------
80,000 23,436
-----------------------
Collateralized 30-A 7.700% 26,670 0 02/01/00
Mortgage Bonds 30-B 8.450% 25,400 0 08/01/07
Series 30, Issued 30-C 9.100% 35,330 0 11/01/13
2/12/87: 30-D 8.875% 17,600 5,289 11/01/15
30-E 9.100% 1,000 2,198 02/01/17
-----------------------
106,000 7,487
-----------------------
Collateralized 31-A 7.700% 23,150 0 08/01/10
Mortgage Bonds 31-B 8.500% 10,330 0 08/01/13
Series 31, Issued 31-C 8.850% 4,970 0 11/01/14
1/29/87: 31-D 8.625% 13,550 4,734 02/01/18
-----------------------
52,000 4,734
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized
Mortgage Bonds 32-A 7.500% 140,400 0 08/01/12
Series 32, Issued 32-B 8.600% 48,500 23,833 05/01/16
1/28/87: 32-C 8.800% 11,100 11,100 02/01/17
-----------------------
200,000 34,933
-----------------------
Collateralized 33-A * 197,200 20,868 06/20/18
Mortgage Bonds 33-B 6.000% 95,200 0 06/20/12
Series 33, Issued 33-C 6.000% 37,600 0 03/20/15
2/26/87: 33-D 6.000% 19,400 0 03/20/16
33-E 6.000% 50,600 21,460 06/20/18
-----------------------
400,000 42,328
-----------------------
</TABLE>
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized 34-A 7.750% 34,500 0 08/25/00
Mortgage Bonds 34-B 8.600% 69,500 0 02/25/11
Series 34, Issued 34-C 8.625% 27,250 2,134 05/25/13
2/26/87: 34-D 8.850% 2,000 4,302 02/25/15
34-E 8.850% 2,250 4,840 02/25/17
-----------------------
135,500 11,276
-----------------------
Collateralized 35-A 7.550% 16,750 0 04/01/05
Mortgage Bonds 35-B 8.050% 14,160 0 07/01/10
Series 35, Issued 35-C 8.600% 21,960 0 01/01/15
3/26/87: 35-D 8.500% 16,130 12,523**** 04/01/17
-----------------------
69,000 12,523
-----------------------
Collateralized 36-A 7.650% 25,075 0 07/25/99
Mortgage Bonds 36-B 8.200% 22,150 0 10/25/04
Series 36, Issued 36-C 8.750% 37,165 0 10/25/10
4/30/87: 36-D 8.750% 5,610 9,860 04/25/17
-----------------------
90,000 9,860
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 37-A 7.600% 73,575 0 02/01/07
Mortgage Bonds 37-B 8.350% 62,580 17,766 12/01/12
Series 37, Issued 37-C 9.000% 5,000 10,957 12/01/16
3/30/87: 37-D 8.625% 9,000 9,000 04/01/17
-----------------------
150,155 37,723
-----------------------
Collateralized 38-A 7.600% 90,010 0 10/20/11
Mortgage Bonds 38-B 8.250% 6,080 0 04/20/12
Series 38, Issued 38-C 8.550% 24,140 944 04/20/14
4/30/87: 38-D 8.600% 4,770 9,831 07/20/18
-----------------------
125,000 10,775
-----------------------
Collateralized
Mortgage Bonds
Series 39, Issued 39-A * 108,750 0 02/20/17
5/28/87: 39-B 8.400% 16,250 0 08/20/18
-----------------------
125,000 0
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 40-A-1 8.600% 80,000 0 04/01/09
Mortgage Bonds 40-A-2 20.150% 2,500 0 06/01/17
Series 40, Issued 40-B 8.950% 13,500 0 08/01/10
5/28/87: 40-C 8.950% 34,500 0 04/01/13
40-D 9.000% 15,000 10,305 03/01/14
40-E 8.950% 4,500 9,674 06/01/17
-----------------------
150,000 19,979
-----------------------
Collateralized
Mortgage Bonds
Series 41, Issued
5/21/87: 41-A 9.500% 56,500 8,190 05/25/17
-----------------------
</TABLE>
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized 42-A 8.750% 56,290 0 03/01/10
Mortgage Bonds 42-B 9.400% 7,695 0 03/01/11
Series 42, Issued 42-C 9.400% 26,120 0 03/01/14
5/28/87: 42-D 9.400% 2,500 5,085 03/01/17
42-E 9.400% 7,440 7,440 09/01/17
-----------------------
100,045 12,525
-----------------------
Collateralized 43-A 9.100% 13,840 0 07/01/04
Mortgage Bonds 43-B 9.250% 26,000 0 04/01/13
Series 43, Issued 43-C 9.250% 17,560 15,453**** 07/01/16
6/25/87: 43-D 9.250% 600 1,305**** 07/01/18
-----------------------
58,000 16,758
-----------------------
Collateralized
Mortgage Bonds 44-A 9.350% 11,200 0 08/25/03
Series 44, Issued 44-B 9.375% 17,800 142 02/25/13
6/25/87: 44-C 9.375% 1,000 2,212 06/25/17
-----------------------
30,000 2,354
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 45-A 9.000% 13,100 0 08/01/00
Mortgage Bonds 45-B 9.375% 21,400 0 11/01/09
Series 45, Issued 45-C 9.375% 15,000 3,121 08/01/13
7/28/87: 45-D 9.375% 1,500 3,222 08/01/17
-----------------------
51,000 6,343
-----------------------
Collateralized 46-A-1 8.850% 71,247 0 10/01/03
Mortgage Bonds 46-A-2 ** 965 0 08/01/17
Series 46, Issued 46-B 9.500% 58,953 0 07/01/08
7/30/87: 46-C 9.800% 5,830 0 11/01/08
46-D 9.800% 13,005 0 08/01/17
-----------------------
150,000 0
-----------------------
Collateralized
Mortgage Bonds 47-A 9.050% 22,385 0 02/20/03
Series 47, Issued 47-B 9.100% 25,115 1,035 02/20/12
7/30/87: 47-C 9.100% 2,500 5,252 05/20/18
-----------------------
50,000 6,287
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 48-A * 70,470 0 07/25/94
Mortgage Bonds 48-B * 67,400 0 04/25/98
Series 48, Issued 48-C * 208,120 0 10/25/04
7/30/87: 48-D 9.850% 59,180 0 07/25/17
-----------------------
405,170 0
-----------------------
Collateralized 49-A 8.800% 9,600 0 09/01/07
Mortgage Bonds 49-B 9.125% 7,450 0 06/01/11
Series 49, Issued 49-C 9.125% 25,800 6,789 03/01/17
8/27/87: 49-D 9.125% 650 1,368 09/01/18
-----------------------
43,500 8,157
-----------------------
</TABLE>
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized 50-A 6.000% 39,700 0 02/01/04
Mortgage Bonds 50-B * 94,200 0 10/01/08
Series 50, Issued 50-C ** 100 0 10/01/17
9/30/87: 50-D 6.000% 15,000 0 09/01/06
50-E 6.000% 15,000 0 10/01/08
50-F 9.500% 20,000 7,588 07/01/09
50-G 9.450% 16,000 34,793 10/01/17
-----------------------
200,000 42,381
-----------------------
Collateralized 51-A 9.250% 12,900 0 04/01/04
Mortgage Bonds 51-B 9.250% 13,300 0 04/01/10
Series 51, Issued 51-C 9.250% 19,700 0 04/01/15
9/29/87: 51-D 9.250% 24,100 16,814**** 10/01/18
-----------------------
70,000 16,814
-----------------------
Collateralized
Mortgage Bonds
Series 52, Issued
9/29/87: 52-A 9.625% 97,250 3,570 09/25/17
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 53-A 10.000% 28,350 0 07/25/06
Mortgage Bonds 53-B 10.000% 12,200 0 07/25/09
Series 53, Issued 53-C 10.000% 8,450 0 04/25/11
10/25/87: 53-D 10.000% 18,000 0 04/25/13
53-E 10.000% 3,000 5,977 10/25/18
-----------------------
70,000 5,977
-----------------------
Collateralized
Mortgage Bonds 54-A 9.850% 24,100 6,375 02/01/19
Series 54, Issued 54-B 9.850% 23,315 0 11/01/03
10/29/87: 54-C 9.850% 10,935 13,470 02/01/19
-----------------------
58,350 19,845
-----------------------
Collateralized 55-A 9.300% 13,800 0 10/01/01
Mortgage Bonds 55-B 9.500% 11,000 0 07/01/06
Series 55, Issued 55-C 9.500% 18,000 1,398**** 04/01/11
12/22/87: 55-D 9.500% 15,000 14,100**** 07/01/13
55-E 9.500% 2,200 4,663**** 01/01/18
-----------------------
60,000 20,161
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 56-A 9.500% 27,900 0 12/25/02
Mortgage Bonds 56-B 9.500% 12,600 0 06/25/06
Series 56, Issued 56-C 9.500% 10,650 0 09/25/08
12/22/87: 56-D 9.500% 5,000 0 06/25/09
56-E 9.500% 4,850 3,678 02/25/18
-----------------------
61,000 3,678
-----------------------
Collateralized
Mortgage Bonds
Series 57, Issued 57-A 8.125% 65,000 9,627 08/15/00
-----------------------
</TABLE>
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized 58-A * 140,000 0 10/20/16
Mortgage Bonds 58-B * 46,000 0 11/20/18
Series 58, Issued 58-C 0.000% 3,900 0 11/20/18
12/30/87: 58-D 9.500% 10,000 0 02/20/19
58-E ** 100 0 02/20/19
-----------------------
200,000 0
-----------------------
Collateralized 59-A 9.250% 47,300 0 07/25/09
Mortgage Bonds 59-B 10.000% 31,250 0 11/25/12
Series 59, Issued 59-C 9.500% 29,250 0 01/25/15
1/28/88: 59-D 10.550% 2,200 0 01/25/18
59-E ** 100 0 01/25/18
-----------------------
110,100 0
-----------------------
Collateralized
Mortgage Bonds 60-A 9.550% 57,630 0 04/25/99
Series 60, Issued 60-B 9.550% 15,090 0 11/25/00
12/29/87: 60-C 9.550% 29,690 8,064 12/25/03
-----------------------
102,410 8,064
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 61-A 8.900% 54,000 515 12/01/08
Mortgage Bonds 61-B 9.150% 42,000 6,343 06/01/09
Series 61, Issued 61-C 9.375% 4,000 3,768 09/01/09
02/25/88 61-D *** 200 21 09/01/09
-----------------------
100,200 10,647
-----------------------
Collateralized 62-A 8.850% 58,355 16,695 03/01/18
Mortgage Bonds 62-B 9.000% 31,365 0 07/01/09
Series 62, Issued 62-C 8.850% 6,000 0 12/01/09
02/25/88 62-D 7.500% 12,880 0 02/01/11
62-E 9.050% 32,000 0 11/01/12
62-F 8.000% 9,400 9,318 03/01/18
62-G *** 200 28 03/01/18
-----------------------
150,200 26,041
-----------------------
Collateralized 63-A 8.750% 28,800 0 04/01/05
Mortgage Bonds 63-B 8.750% 6,450 0 04/01/07
Series 63, Issued 63-C 8.750% 15,100 5,075**** 01/01/11
3/30/88: 63-D 8.750% 3,650 7,139**** 04/01/19
-----------------------
54,000 12,214
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 64-A 8.500% 51,750 0 08/01/04
Mortgage Bonds 64-B 9.000% 14,550 0 09/01/06
Series 64, Issued 64-C 9.000% 28,650 0 12/01/09
03/30/88 64-D 8.600% 10,050 18,656 04/01/18
64-E * 157,500 27,985 04/01/18
64-F 0.000% 37,500 6,663 04/01/18
64-G ** 300 53 04/01/18
-----------------------
300,300 53,357
-----------------------
</TABLE>
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized 65-A 8.300% 48,010 0 07/25/09
Mortgage Bonds 65-B 8.875% 85,333 0 11/25/12
Series 65, Issued 65-C 9.375% 66,667 0 01/25/15
03/29/88 65-R ** 200 0 01/25/18
-----------------------
200,210 0
-----------------------
Collateralized
Mortgage Bonds
Series 66, Issued
04/12/88: 66-A 8.550% 166,245 0 08/20/17
-----------------------
Collateralized 67-A 9.000% 52,740 0 01/20/04
Mortgage Bonds 67-B 9.000% 21,420 0 07/20/06
Series 67, Issued 67-C 9.000% 11,000 11,466 01/20/10
04/12/88: 67-D 9.000% 6,530 12,730 01/20/19
-----------------------
91,690 24,196
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 68-A 8.900% 44,350 0 01/27/88
Mortgage Bonds 68-B 9.000% 12,455 0 01/27/08
Series 68, Issued 68-C 9.000% 59,250 4,660 02/27/14
04/26/88: 68-D 9.000% 4,755 9,388 05/27/19
-----------------------
120,810 14,048
-----------------------
Collateralized
Mortgage Bonds 69-A 9.050% 93,000 4,682 02/01/18
Series 69, Issued 69-B 9.375% 7,000 6,615 06/01/18
05/26/88: 69-R ** 100 11 06/01/18
-----------------------
100,100 11,308
-----------------------
Collateralized 70-A 8.900% 42,000 0 05/01/05
Mortgage Bonds 70-B 8.900% 51,100 6,716 05/01/12
Series 70, Issued 70-C 8.900% 5,900 11,558 06/01/18
5/31/88: 70-D * 101,000 18,644 06/01/18
70-E 0.000% 26,000 4,799 06/01/18
70-R ** 200 37 06/01/18
-----------------------
226,200 41,754
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 71-A 9.250% 18,800 0 06/01/09
Mortgage Bonds 71-B 8.900% 23,700 0 06/01/18
Series 71, Issued 71-C 9.250% 8,000 4,210 06/01/18
5/26/88: 71-D * 50,850 7,241 02/01/13
71-E 0.000% 17,200 3,839 06/01/18
71-F 9.250% 14,500 14,500 06/01/18
71-G 9.250% 35,000 0 01/01/13
71-H 9.500% 6,750 9,228 06/01/18
71-R ** 200 45 06/01/18
-----------------------
175,000 39,063
-----------------------
</TABLE>
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized 72-A 8.900% 48,560 0 05/01/11
Mortgage Bonds 72-B 9.550% 16,755 0 05/01/14
Series 72, Issued 72-C 9.550% 28,390 5,121 06/01/15
6/29/88: 72-D 9.850% 13,850 13,850 12/01/16
72-E 9.900% 18,021 18,021 07/01/18
72-F 0.000% 10,360 0 07/01/18
72-G ** 49,230 0 07/01/18
72-R ** 15,000 0 07/01/18
-----------------------
200,166 36,992
-----------------------
Collateralized 73-A * 120,000 0 04/01/15
Mortgage Bonds 73-B 0.000% 24,200 2,839 07/01/18
Series 73, Issued 73-C * 42,000 14,782 07/01/18
6/30/88: 73-D 9.500% 18,000 6,335 07/01/18
73-R ** 200 23 07/01/18
-----------------------
204,400 23,979
-----------------------
Collateralized 74-A 7.500% 46,000 0 10/01/04
Mortgage Bonds 74-B 7.500% 21,100 0 11/01/07
Series 74, Issued 74-C * 157,000 11,949 08/01/13
6/30/88: 74-D 7.500% 63,750 9,946 08/01/13
74-E 9.500% 12,150 24,705 07/01/18
74-R ** 300 47 07/01/18
-----------------------
300,300 46,647
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 75-A 9.100% 91,920 0 01/01/11
Mortgage Bonds 75-B 9.450% 38,780 0 03/01/14
Series 75, Issued 75-C * 10,800 9,407 11/01/16
7/28/88: 75-D 8.000% 32,400 28,221 11/01/16
75-E 9.400% 35,295 35,295 08/01/18
75-F 8.000% 45,500 0 05/01/09
75-G 8.000% 34,205 0 08/01/10
75-H 9.500% 40,000 0 10/01/11
75-I 9.250% 21,200 0 08/01/18
75-R ** 300 62 08/01/18
-----------------------
350,400 72,985
-----------------------
Collateralized 76-A 9.000% 134,900 0 08/01/18
Mortgage Bonds 76-B 9.000% 103,300 38,768 08/01/18
Series 76, Issued 76-C 0.000% 25,000 0 08/01/18
7/28/88: 76-D * 36,800 0 08/01/18
76-R ** 300 39 08/01/18
-----------------------
300,300 38,807
-----------------------
Collateralized 77-A * 14,300 0 07/20/12
Mortgage Bonds 77-B 9.550% 23,400 0 07/20/18
Series 77, Issued 77-C 10.000% 14,500 0 11/20/14
7/28/88: 77-D 10.000% 1,150 0 07/20/18
77-E 0.000% 1,430 0 07/20/18
-----------------------
54,780 0
-----------------------
</TABLE>
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized 78-A 9.000% 100,560 0 07/01/17
Mortgage Bonds 78-B 9.550% 18,140 10,693 03/01/16
Series 78, Issued 78-C 9.850% 2,595 2,595 02/01/17
8/30/88: 78-D 9.000% 13,520 0 09/01/18
78-E * 8,420 0 09/01/18
78-F 10.000% 5,220 5,220 09/01/18
78-G 9.500% 1,545 0 09/01/18
78-R ** 100 0 09/01/18
-----------------------
150,100 18,508
-----------------------
Collateralized
Mortgage Bonds
Series 79, Issued 79-A 6.650% 71,175 35,066 07/01/11
7/28/88: 79-B 0.000% 25 12 07/01/11
-----------------------
71,200 35,078
-----------------------
Collateralized 80-A 9.400% 112,900 13,927 02/01/16
Mortgage Bonds 80-B 9.490% 38,600 0 08/01/14
Series 80, Issued 80-C 9.300% 24,000 0 05/01/15
9/29/88: 80-D 9.490% 40,200 40,200 10/01/18
80-E 9.490% 25,200 0 05/01/16
80-F 9.490% 4,500 0 10/01/18
80-R ** 4,600 0 10/01/18
-----------------------
250,000 54,127
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 81-A 9.000% 5,960 0 06/01/13
Mortgage Bonds 81-B 9.000% 31,680 8,491 01/01/15
Series 81, Issued 81-C 9.000% 7,510 7,510 02/01/17
8/25/88: 81-D 9.000% 20,450 0 02/01/17
-----------------------
65,600 16,001
-----------------------
Collateralized
Mortgage Bonds
Series 82, Issued
8/28/88: 82-A 10.250% 75,000 12,624 03/15/11
-----------------------
Collateralized 83-A 9.450% 69,750 0 04/01/09
Mortgage Bonds 83-B 9.450% 44,510 0 02/01/13
Series 83, Issued 83-C 9.450% 27,760 0 11/01/14
9/29/88: 83-D * 15,350 3,687 10/01/17
83-E 8.150% 45,490 10,928 10/01/17
83-F 9.400% 28,405 28,405 10/01/18
83-G 0.000% 40,500 0 10/01/15
83-H 9.000% 52,500 0 03/01/17
83-I 10.000% 26,200 0 10/01/17
83-J * 24,500 0 10/01/18
83-K 5.500% 25,035 0 10/01/18
83-R ** 400 43 10/01/18
-----------------------
400,400 43,063
-----------------------
</TABLE>
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized
Mortgage Bonds
Series 84, Issued
9/29/88: 84-A 10.200% 73,215 2,643 06/25/18
-----------------------
Collateralized 85-A 9.000% 238,600 0 04/01/06
Mortgage Bonds 85-B 9.000% 37,600 0 07/01/07
Series 85, Issued 85-C 9.150% 143,800 0 04/01/11
10/14/88: 85-D 9.250% 50,000 41,339 04/01/12
85-E 9.150% 30,000 57,654 11/01/18
85-R ** 500 99 11/01/18
-----------------------
500,500 99,092
-----------------------
Collateralized 86-A 8.750% 207,700 0 04/01/11
Mortgage Bonds 86-B 9.000% 34,500 0 09/01/12
Series 86, Issued 86-C 9.000% 79,000 0 10/01/15
12/29/88: 86-D 9.900% 20,000 0 10/01/15
86-E 9.500% 32,000 0 07/01/16
86-F 8.750% 126,800 104,135 04/01/19
86-R ** 200 42 04/01/19
-----------------------
500,200 104,177
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 87-A 8.500% 58,974 0 07/01/14
Mortgage Bonds 87-B 8.000% 15,885 0 06/20/16
Series 87, Issued 87-C 8.000% 21,047 0 06/20/18
12/28/88: 87-D 8.000% 25,168 15,651 04/20/20
87-E * 28,826 4,265 04/20/20
87-R ** 100 13 04/20/20
-----------------------
150,000 19,929
-----------------------
Collateralized 88-A 8.000% 78,060 0 06/01/07
Mortgage Bonds 88-B 8.000% 42,675 0 09/01/11
Series 88, Issued 88-C 8.000% 44,550 38,192 12/01/14
12/22/88: 88-D 8.000% 79,000 79,000 01/01/19
88-E 7.950% 43,200 64,358 01/01/19
88-F 7.750% 35,180 0 09/01/15
88-G 8.000% 10,000 0 02/01/16
88-H 8.000% 8,000 0 05/01/16
88-I 8.000% 12,000 0 11/01/16
88-J 7.950% 7,335 0 01/01/19
88-R ** 300 0 01/01/19
-----------------------
360,300 181,550
-----------------------
Collateralized 89-A 8.875% 70,700 0 11/01/06
Mortgage Bonds 89-B 8.875% 39,000 0 11/01/10
Series 89, Issued 89-C 8.875% 25,400 25,400 11/01/12
01/31/89: 89-D 8.875% 78,500 78,500 08/01/17
89-E 8.875% 39,800 39,800 02/01/19
89-F ** 108,655 0 08/01/16
89-G 8.875% 111,575 7,831 02/01/19
-----------------------
473,630 151,531
-----------------------
</TABLE>
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized 90-A 10.000% 8,500 0 10/20/14
Mortgage Bonds 90-B 10.000% 12,500 0 01/20/19
Series 90, Issued 90-C 10.000% 7,500 1,920 01/20/19
01/26/89: 90-D 10.000% 21,500 0 01/20/19
-----------------------
50,000 1,920
-----------------------
Collateralized 91-A 9.950% 29,700 0 03/01/19
Mortgage Bonds 91-B 9.950% 77,760 11,518 03/01/19
Series 91, Issued 91-C 9.950% 41,240 41,240 03/01/19
02/28/89: 91-D 9.950% 37,500 16,372 03/01/19
91-E 9.950% 30,000 0 03/01/19
91-F 9.950% 156,000 0 11/01/11
91-G 9.950% 7,600 0 02/01/12
91-H 9.950% 20,200 0 03/01/19
91-R *** 100 0 03/01/19
-----------------------
400,100 69,130
-----------------------
Collateralized 92-A 8.960% 44,960 0 05/01/19
Mortgage Bonds 92-B 8.960% 22,000 0 05/01/19
Series 92, Issued 92-C 8.960% 16,200 0 05/01/19
04/27/89: 92-D 8.960% 15,500 26,133 05/01/19
92-E 8.960% 36,720 5,005 05/01/19
92-F 8.960% 8,000 0 05/01/19
92-G 8.960% 56,970 56,970 05/01/19
92-H 8.960% 9,040 0 05/01/19
92-I 8.960% 18,000 0 05/01/19
92-J 10.000% 30,000 0 05/01/19
92-K 10.000% 25,240 0 05/01/19
92-L 8.960% 11,070 0 05/01/19
92-M 0.000% 6,500 0 05/01/19
92-R *** 50 0 05/01/19
-----------------------
300,250 88,108
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 93-A 9.500% 35,170 0 07/18/20
Mortgage Bonds 93-B 9.500% 33,500 0 07/18/20
Series 93, Issued 93-C 9.500% 29,600 0 07/18/20
06/29/89: 93-D 9.500% 16,420 0 07/18/20
93-E 9.500% 38,000 3,739 07/18/20
93-F 9.500% 30,000 30,000 07/18/20
93-G 9.500% 12,090 0 07/18/20
93-H 9.500% 53,000 0 07/18/20
93-I 9.500% 30,000 0 07/18/20
93-J 9.500% 10,000 0 07/18/20
93-K 9.500% 12,170 0 07/18/20
93-R *** 75 0 07/18/20
-----------------------
300,025 33,739
-----------------------
</TABLE>
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized 94-A 9.500% 45,395 0 05/22/10
Mortgage Bonds 94-B 9.500% 70,000 0 06/22/13
Series 94, Issued 94-C 9.500% 21,000 0 06/22/13
06/29/90: 94-D 9.500% 37,642 0 06/22/15
94-E 9.850% 12,000 0 11/22/17
94-F 9.400% 42,000 0 11/22/17
94-G 9.500% 7,434 0 06/22/93
94-H 9.500% 6,159 0 06/22/95
94-I 9.500% 22,495 0 06/22/00
94-J 9.500% 20,843 17,611 09/22/03
94-K ** 160 28 06/22/20
94-R 9.500% 6,930 10 06/22/20
94-Z 9.500% 22,942 38,606 06/22/20
-----------------------
315,000 56,255
-----------------------
<S> <C> <C> <C> <C> <C>
Collateralized 95-A 8.500% 145,927 0 02/20/10
Mortgage Bonds 95-B ** 73 0 02/20/10
Series 95, Issued 95-C 9.000% 20,550 0 12/20/10
01/30/91: 95-D 9.000% 50,250 0 10/20/12
95-E 9.000% 14,650 0 01/20/96
95-G 9.000% 22,950 0 01/20/01
95-H 9.000% 19,630 15,455 01/20/04
95-J ** 291 54 01/20/21
95-R 9.000% 25,970 2 01/20/21
95-Z 9.970% 10 40,358 01/20/21
-----------------------
300,301 55,869
-----------------------
Collateralized 96-A 8.550% 287,100 0 06/20/14
Mortgage Bonds 96-B 9.100% 56,700 0 12/20/15
Series 96, Issued 96-C 9.100% 39,436 0 12/20/16
01/30/91: 96-D 9.300% 36,000 0 01/20/18
96-E 8.700% 18,000 0 01/20/18
96-F 9.100% 31,986 0 01/20/96
96-G 9.100% 56,657 1,844 07/20/01
96-H 9.100% 34,056 34,056 11/20/03
96-I ** 630 123 01/20/21
96-J ** 225 0 06/20/14
96-R 9.100% 55,800 0 01/20/21
96-Z 9.100% 14,040 87,139 01/20/21
-----------------------
630,630 123,162
-----------------------
</TABLE>
<PAGE>
<TABLE>
The following table provides information with respect to all series of bonds
issued by Ryland Acceptance Corporation Four (dollars in thousands):
Outstanding
Original Principal Stated
Series and Issue Principal Balance Maturity
Date Class Rate Amount @12/31/95 Date
- ---------------- ----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Collateralized 97-A 7.950% 25,110 0 08/20/02
Mortgage Bonds 97-B 7.950% 25,800 0 05/20/07
Series 97, Issued 97-C 8.250% 22,500 0 03/20/10
04/30/91: 97-D 8.500% 46,250 0 03/20/14
97-E 7.950% 38,676 0 08/20/16
97-F ** 113,558 0 04/20/21
97-G 7.950% 4,000 3,258 08/20/19
97-H 8.950% 60,000 48,868 08/20/19
97-I 8.500% 11,666 11,666 01/20/20
97-JA 8.750% 21,200 21,200 04/20/21
97-JB 8.500% 14,130 14,130 04/20/21
97-JC ** 3 3 04/20/21
97-K ** 340 45 04/20/21
97-L 8.500% 43,000 0 03/20/21
97-M 8.500% 4,375 0 04/20/21
97-MA ** 194 0 04/20/21
97-N 9.000% 17,158 0 04/20/21
97-O 9.000% 10,000 0 06/20/20
97-P 9.000% 5,682 0 11/20/19
97-Q 9.000% 11,123 0 02/20/20
97-S ** 15,835 0 04/20/21
97-SB ** 4,400 0 04/20/21
97-SC ** 5,000 0 04/20/21
97-T ** 500 99 04/20/21
-----------------------
500,500 99,269
-----------------------
Collateralized 98-A * 112,500 48,562 06/25/23
Mortgage Bonds -----------------------
Series 98, Issued
09/30/93:
<S> <C> <C> <C> <C> <C>
Collateralized 99-A * 225,000 41,749 10/25/23
Mortgage Bonds -----------------------
Series 99, Issued
10/29/93:
$16,374,732 $2,534,651
==========================
</TABLE>
<PAGE>
LEGEND:
* These bonds are variable interest rate bonds. These bonds will bear
interest at rates based upon the London Inter-bank Offered Rate, as specified
in each Series Supplement to the Indenture between the Company and Bank of New
York, as Trustee, dated February 1, 1985, as heretofore supplemented, amended
and restated.
** These classes of bonds represent REMIC residual interests and other classes
for which varying interest rates as described in each Series' Supplement
apply.
*** These classes of bonds represent private placements of residual interests
which have no stated interest rate.
**** For purposes of this schedule only, the balances shown for these series
have been reduced by the January 1, 1996 bond payment.
ITEM 2. PROPERTIES:
The Company has no physical properties.
ITEM 3. LEGAL PROCEEDINGS:
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS:
Information in response to this Item is omitted pursuant to General
Instruction J.
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS:
All of the Company's outstanding common stock is owned by LPS.
Accordingly, there is no market for its common stock. The Company did
not pay any dividends to LPS with respect to its common stock in 1995.
The Company paid $48 thousand in dividends to LPS with respect to its
common stock in 1994.
ITEM 6. SELECTED FINANCIAL DATA:
Information in response to this Item is omitted pursuant to General
Instruction J.
<PAGE>
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS:
GENERAL
The consolidated financial statements and related notes should be read in
conjunction with the following review.
The Company was formed on January 25, 1985 solely for the purpose of
facilitating the long-term financing of mortgage loans through the issuance
and sale of mortgage-backed bonds (the "bonds"). Since its inception, the
Company has issued and recorded in the financial statements 43 series of
bonds. The bond series shown in the financial statements represent
obligations solely of the Company, and are secured by mortgage collateral
originated by Ryland Mortgage Company (RMC), a wholly owned subsidiary of The
Ryland Group, Inc. (Ryland), and by other entities. The bonds are not
guaranteed or insured by Ryland, RMC, LPS Holdings Corporation or any other
affiliated entities.
The Company issues bonds in series and uses the net proceeds from the sale of
the bonds to: (1) purchase mortgage collateral from RMC, (2) purchase
mortgage collateral from other homebuilders or financial institutions and (3)
fund loans secured by mortgage collateral to limited-purpose subsidiaries of
homebuilders or financial institutions participating in the issuance of the
bonds. The bonds are structured such that the cash flows from the underlying
mortgage collateral will be sufficient to satisfy the bond obligations. As of
December 31, 1995, the Company had $626.2 million of collateralized mortgage
bonds remaining for issuance under a registration statement filed with the
Securities and Exchange Commission.
In addition, the Company uses its shelf registration to issue bonds on behalf
of other companies. As of December 31, 1995, the Company had issued 56 series
of bonds under these arrangements. These bonds and the associated mortgage
collateral are excluded from the consolidated financial statements of the
Company since the issuance of these bonds has been accounted for as a sale of
the associated mortgage collateral in accordance with generally accepted
accounting principles. The Company has relinquished all risks and rewards
relating to the bonds payable and associated mortgage collateral. The Company
has elected to treat 49 series of these bonds as real estate mortgage
investment conduits for tax purposes. During the year ended December 31, 1995
and 1994, the Company did not issue any bonds.
During 1994, the Company acquired bonds of $12.8 million and the related
collateral from another company. These bonds had previously been issued from
the Company's shelf registration and accounted for as a sale under generally
accepted accounting principles.
The bonds were reduced during the year for payments and prepayments on the
underlying mortgage collateral. A bond series or a class within certain
series may be redeemed at par at the earlier of the date specified in the
Indenture or when the outstanding collateral value of the mortgage securities
securing the bond series or class is less than or equal to a specified
percentage of the initial collateral value of such securities. During the
year ended December 31, 1995, certain classes within each of 8 series totaling
$58.1 million were redeemed. During the year ended December 31, 1994, certain
classes within each of 17 series totaling $291.2 million were redeemed.
<PAGE>
RESULTS OF OPERATIONS
For the years ended December 31, 1995, 1994 and 1993, revenues consisted
primarily of interest on mortgage collateral subject to the bond indebtedness
and amortization of deferred items, and totalled $44,557, $58,142 and
$104,366, respectively. The amount of revenues reported during each period
depends primarily upon the amount of mortgage collateral outstanding during
each such period, the related prepayment rates and the interest rates on such
mortgage collateral. The Company's average net investment in mortgage
collateral (excluding funds held by trustee) and the average effective rate of
interest income are as follows (dollars in thousands):
<TABLE>
1995 1994 1993
------------------------------------------------
<S> <C> <C> <C>
Average net investment in
mortgage collateral $468,072 $575,126 $997,561
Average effective interest
rate 9.40% 9.92% 10.10%
</TABLE>
Expenses for the years ended December 31, 1995, 1994 and 1993 consisted
primarily of interest on the Company's outstanding bonds and amortization of
deferred costs, and totaled $44,546, $58,062 and $104,310, respectively. The
amount of expenses reported during each period depends primarily upon the
amount of bonds outstanding during each such period and the interest rates on
such bonds. The Company's average debt outstanding and average cost of
borrowings are as follows (dollars in thousands):
<TABLE>
1995 1994 1993
------------------------------------------------
<S> <C> <C> <C>
Average debt outstanding $477,155 $610,622 $1,064,759
Average cost of borrowings 9.22% 9.35% 9.54%
</TABLE>
The bonds will decline over time in direct proportion to the decline in the
mortgage collateral.
Net cash flows that are generated based upon the differential between the
interest rates of the bonds outstanding and the mortgage collateral are
described as the net interest spreads. Excluding the impact of the
amortization of deferred costs, the net interest spread of a bond generally is
higher during the earlier years since bond classes with earlier stated
maturities generally have lower interest rates than classes with later stated
maturities. Because the weighted average interest rate of the bonds is lower
during the earlier years and the interest rates on the underlying collateral
are fixed, there is a greater net interest spread in the earlier years. The
number of bonds issued by the Company in which a net interest spread is
retained has decreased substantially since 1988.
<PAGE>
FINANCIAL CONDITION AND LIQUIDITY
Mortgage collateral held by the Company is pledged as collateral for the
mortgage-backed bonds, the terms of which provide for the retirement of all
bonds from the proceeds of the mortgage collateral. Cash flows from payments
on the mortgage collateral, together with proceeds of reinvestment income
earned on the mortgage collateral, are intended to provide cash sufficient to
make all required payments of principal and interest on each outstanding
series of bonds. The Company anticipates that it will require no additional
funds to meet the obligation on its outstanding bonds.
During 1991, RMC assumed the Company's obligation to maintain cash deposits
with the Trustee for mortgagor bankruptcy risk associated with the mortgage
collateral. At December 31, 1995 and 1994, cash deposits of $.2 million and
$1.7 million were maintained by RMC.
It is anticipated that regular payments under the terms of the mortgages, as
well as early mortgage retirements, will reduce the number of mortgages and
amount of bonds outstanding in future years. The Company does not anticipate
the issuance of additional series of bonds.
<PAGE>
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA:
AUDITED CONSOLIDATED FINANCIAL STATEMENTS
RYLAND ACCEPTANCE CORPORATION FOUR AND SUBSIDIARIES
December 31, 1995
Report of Independent Auditors 26
Consolidated Balance Sheets 27
Consolidated Statements of Earnings 28
Consolidated Statements of Stockholder's Equity 29
Consolidated Statements of Cash Flows 30
Notes to Consolidated Financial Statements 31
<PAGE>
REPORT OF INDEPENDENT AUDITORS
Board of Directors
Ryland Acceptance Corporation Four
We have audited the accompanying consolidated balance sheets of Ryland
Acceptance Corporation Four (a wholly owned subsidiary of LPS Holdings
Corporation) and subsidiaries as of December 31, 1995 and 1994, and the
related consolidated statements of earnings, stockholder's equity, and cash
flows for each of the three years in the period ended December 31, 1995.
These financial statements are the responsibility of the company's management.
Our responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Ryland
Acceptance Corporation Four and subsidiaries at December 31, 1995 and 1994,
and the consolidated results of their operations and their cash flows for each
of the three years in the period ended December 31, 1995, in conformity with
generally accepted accounting principles.
/s/ Ernst & Young LLP
---------------------
February 5, 1996
<PAGE>
<TABLE>
CONSOLIDATED BALANCE SHEETS
RYLAND ACCEPTANCE CORPORATION FOUR AND SUBSIDIARIES
December 31 (dollars in thousands)
ASSETS 1995 1994
----------------------------------
<S> <C> <C>
Collateral for bonds payable:
Mortgage-backed securities
held-to-maturity, less discounts
of $1,263 and $2,301 $ 110,007 $ 179,769
Mortgage-backed securities
available-for-sale 47,846
Mortgage loans receivable,
less discounts of $1,929 and $2,347 66,685 83,908
Notes receivable,
less discounts of $4,904 and $5,707 199,102 237,697
Funds held by trustee 26,231 25,164
------------- -------------
449,871 526,538
<S> <C> <C>
Cash 11 36
Other assets 4,318 5,085
------------- -------------
$ 454,200 $ 531,659
============= =============
LIABILITIES AND STOCKHOLDER'S EQUITY
Bonds payable, less discounts
of $6,662 and $7,862 $ 437,376 $ 513,883
Due to affiliate 3,209 3,911
Other liabilities 12,385 13,855
------------- -------------
452,970 531,649
------------- -------------
<S> <C> <C>
STOCKHOLDER'S EQUITY
Common stock, $1.00 par value;
10,000 shares authorized,
issued and outstanding 10 10
Retained earnings 7 -
Net unrealized gain on mortgage-backed
securities available-for-sale
(net of taxes of $809 and $0) 1,213 -
------------- -------------
1,230 10
------------- -------------
$ 454,200 $ 531,659
============= =============
</TABLE>
See notes to consolidated financial statements
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF EARNINGS
RYLAND ACCEPTANCE CORPORATION FOUR AND SUBSIDIARIES
Year Ended December 31 (dollars in thousands)
1995 1994 1993
-------------------------------------------------
<S> <C> <C> <C>
REVENUES
Interest $ 44,647 $ 58,088 $ 102,461
Other (90) 54 1,905
------------ ------------ ------------
44,557 58,142 104,366
------------ ------------ ------------
EXPENSES
Interest 44,436 57,578 102,501
Other 110 484 1,809
------------ ------------ ------------
44,546 58,062 104,310
------------ ------------ ------------
<S> <C> <C> <C>
EARNINGS BEFORE INCOME
TAXES 11 80 56
Income taxes 4 32 22
------------ ------------ ------------
NET EARNINGS $ 7 $ 48 $ 34
============ ============ ============
</TABLE>
See notes to consolidated financial statements
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY
RYLAND ACCEPTANCE CORPORATION FOUR AND SUBSIDIARIES
Year Ended December 31, 1995, 1994 and 1993 (dollars in thousands)
Net
Unrealized
Gain on
MBS Total
Common Retained Available- Stockholder's
Stock Earnings for-Sale Equity
-----------------------------------------------------
<S> <C> <C> <C> <C>
Balance at
December 31, 1992 $ 10 $ - $ - $ 10
Net earnings 34 34
Common stock dividends (34) (34)
-----------------------------------------------------
Balance at
December 31, 1993 10 - - 10
-----------------------------------------------------
Net earnings 48 48
Common stock dividends (48) (48)
-----------------------------------------------------
Balance at
December 31, 1994 10 - - 10
-----------------------------------------------------
<S> <C> <C> <C> <C>
Net earnings 7 7
Increase in net
unrealized gain on
MBS available-for-sale
(net of taxes of $808) 1,213 1,213
-----------------------------------------------------
Balance at
December 31, 1995 $ 10 $ 7 $ 1,213 $ 1,230
=====================================================
</TABLE>
See notes to consolidated financial statements
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
RYLAND ACCEPTANCE CORPORATION FOUR AND SUBSIDIARIES
Year Ended December 31 (dollars in thousands)
1995 1994 1993
-----------------------------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net earnings $ 7 $ 48 $ 34
Adjustments to reconcile net earnings to
net cash used for operating activities:
Amortization:
Deferred financing costs 94 381 1,710
Discounts on bonds payable 1,200 3,562 8,527
Discounts on collateral for
bonds payable (1,263) (3,858) (8,356)
Net decrease in other assets, other
liabilities and amounts due
to affiliate (2,513) (8,342) (13,639)
Net cash used for operating activities (2,475) (8,209) (11,724)
<S> <C> <C> <C>
Cash flows from investing activities:
Additions to other collateral for
bonds payable - (13,101) -
Principal reduction on mortgage-backed
securities - held-to-maturity 24,184 86,211 -
Principal reduction on other collateral
for bonds payable 57,039 155,277 511,862
Decrease (increase) in funds held
by trustee (1,067) 69,572 39,333
------- ------- -------
Net cash provided by investing activities 80,156 297,959 551,195
<S> <C> <C> <C>
Cash flows from financing activities:
Additions to bonds payable - 12,774 -
Reductions of bonds payable (88,842) (315,492) (548,286)
Principal accretion on bonds payable 11,136 12,955 8,907
Dividends paid - (48) (34)
------- ------- -------
Net cash used for financing activities (77,706) (289,811) (539,413)
------- ------- -------
Net (decrease) increase in cash (25) (61) 58
Cash at beginning of year 36 97 39
------- ------- -------
CASH AT END OF YEAR $ 11 $ 36 $ 97
======== ======== ========
Supplemental disclosures:
Cash paid during the year for interest $ 44,531 $ 60,363 $105,257
======== ======== ========
</TABLE>
See notes to consolidated financial statements
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
RYLAND ACCEPTANCE CORPORATION FOUR AND SUBSIDIARIES
December 31, 1995 (dollars in thousands)
NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Description of Business
Ryland Acceptance Corporation Four (the "Company") is a wholly owned
subsidiary of LPS Holdings Corporation (LPS) and an indirect, wholly owned
subsidiary of The Ryland Group, Inc. (Ryland). The Company was organized to
facilitate the long-term financing of mortgage loans originated by Ryland
Mortgage Company (RMC), a wholly owned subsidiary of Ryland, and other
entities through the issuance and sale of mortgage-backed bonds.
Reclassifications
Certain amounts previously reported have been reclassified to conform with the
1995 presentation.
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the
Company and its wholly owned subsidiaries, C.C. Holding Company and Brock
Acceptance Corporation (BAC). All significant intercompany transactions and
balances have been eliminated in consolidation.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results inevitably will differ from those estimates, and such
differences may be material to the financial statements.
Collateral for Bonds Payable
Collateral for bonds payable consists of mortgage-backed securities, mortgage
loans receivable, notes receivable from participants, funds held by trustee
and various types of insurance. Mortgage-backed securities consist primarily
of GNMA certificates, FNMA mortgage pass-through certificates and FHLMC
participation certificates. Mortgage loans receivable consists of loans
collateralized by first mortgages or first deeds of trust on single family
attached or detached houses.
Notes receivable represent funding agreements with unaffiliated entities (the
"participants") participating in the Company's bond programs. The Company
issues bonds and lends proceeds to the participants in accordance with funding
agreements. These funding agreements are fully collateralized by mortgage
loans and mortgage-backed securities. The Company has assigned to the Trustee
its interest in these funding agreements and the underlying loans and
mortgage-backed securities as collateral for a corresponding amount of bonds.
Principal and interest on the funding agreements are payable concurrently and
at the same rate as such payments on the bonds.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
RYLAND ACCEPTANCE CORPORATION FOUR AND SUBSIDIARIES
December 31, 1995 (dollars in thousands)
NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)
Collateral for Bonds Payable (Continued)
Funds held by trustee represent payments on mortgage collateral and
reinvestment earnings on such funds which have not been applied to pay
principal and interest on the bonds. These funds are restricted to assure
payment in accordance with the Trust Indenture ("the Indenture").
The mortgage collateral securing the bonds may include mortgage loans that are
delinquent or non-performing, and real estate owned ("REO") properties. At
December 31, 1995, Mortgage loans receivable and Notes receivable include 145
loans in the amount of $14.2 million that are delinquent, non-performing, or
REO properties. At December 31, 1994, Mortgage loans receivable and Notes
receivable include 153 loans in the amount of $16.6 million that are
delinquent, non-performing, or REO properties. Reserves for these loans have
not been established as any anticipated losses would be covered by primary
mortgage insurance, hazard insurance, mortgagor bankruptcy insurance or
mortgage pool insurance policies. Since the Company's inception, the Company
has recovered $20.7 million from pool insurance which represents less than 1%
of the initial total principal balance of mortgage loans. At December 31,
1995, $258.6 million or 93% of the initial pool insurance coverage remains
available for future potential losses. Management believes that this coverage
is adequate. As of December 31, 1995, the pool insurer has been rated AAA by
a nationally recognized statistical rating agency.
Mortgage loans receivable acquired from an affiliate are valued at the
affiliate's net carrying amount which is the lower of cost or market at the
time of transfer.
Collateral for bonds payable are reported net of loan origination discount
points and purchase price discounts. These discounts are deferred as an
adjustment to the carrying value of the related collateral for bonds payable
and are amortized into interest income over their respective lives using the
interest method adjusted currently for the effects of prepayments.
Deferred Financing Costs
Financing costs incurred in connection with the issuance of bonds are
capitalized and amortized over the respective lives of the bonds using the
interest method adjusted currently for the effects of prepayments. These
costs are included in other assets in the accompanying consolidated financial
statements.
Bond Price Discounts
Price discounts incurred in connection with the issuance of bonds are deferred
as an adjustment to the carrying value of the bonds and are amortized into
interest expense over the lives of the bonds using the interest method
adjusted currently for the effects of prepayments.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
RYLAND ACCEPTANCE CORPORATION FOUR AND SUBSIDIARIES
December 31, 1995 (dollars in thousands)
NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)
Income Taxes
The Company is included in the consolidated federal income tax return filed by
Ryland. Consolidated income taxes are allocated to the Company using the
separate return method. The Company adopted Statement of Financial Accounting
Standards No. 109, "Accounting for Income Taxes" (FAS 109), effective January
1, 1993. Prior to the adoption of FAS 109, income taxes were accounted for in
accordance with FAS 96. The impact of the adoption of FAS 109 was not
material. Certain items of income and expense are included in one period for
financial reporting purposes and another for income tax purposes. Deferred
income taxes are provided in recognition of these differences.
Mortgage Backed Securities
In May 1993, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 115, "Accounting for Certain Investments in
Debt and Equity Securities." The Company adopted the provisions of the new
standard for investments held as of or acquired after January 1, 1994.
Management determines the appropriate classification of mortgage backed
securities at the time of purchase and reevaluates such designations as of
each balance sheet date. The Company has classified its investments in
mortgage-backed securities as held-to-maturity and available-for-sale.
Securities classified as held-to-maturity are accounted for at amoritized
cost. Securities classified as available-for-sale are measured at fair market
value with market value changes, net of tax, reflected as a component of
stockholder's equity. Because the Indentures prohibit liquidation of
collateral for bonds payable, fair values cannot be realized unless the
corresponding bonds payable are redeemed.
In November 1995, the Financial Accounting Standards Board issued Special
Report No. 155-B, "A Guide to Implementation of Statement 115 on Accounting
for Certain Investments in Debt and Equity Securities", as an aid in
understanding and implementing Statement 115. The effect of adopting this
implementation guidance as of December 31, 1995 has resulted in the
reclassification of $45,825 of mortgage backed securities from the held-to-
maturity classification to the available-for-sale classification. The related
unrealized gain recorded in stockholder's equity totaled $1,213, net of
deferred taxes of $808. Restatement of prior periods to reflect the effects
of initially adopting this implementation guidance is not permitted.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
RYLAND ACCEPTANCE CORPORATION FOUR AND SUBSIDIARIES
December 31, 1995 (dollars in thousands)
NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)
The following is a summary of available-for sale and held-to-maturity
securities as of:
<TABLE>
Amortized Unrealized Unrealized Estimated
Gross Cost Gross Gains Losses Fair Value
<S> <C> <C> <C> <C>
December 31, 1995
Available-for-sale $45,825 $ 2,021 $ - $ 47,846
Held-to-maturity 110,007 8,754 - 118,761
-------- ------- ------ --------
Totals $155,832 $10,775 $ - $166,607
======== ======= ====== ========
December 31, 1994
Held-to-maturity $179,769 $ 4,086 $1,709 $182,146
======== ======= ====== ========
</TABLE>
NOTE B--FAIR VALUES OF FINANCIAL INSTRUMENTS
Statement of Financial Accounting Standards No. 107, "Disclosures about Fair
Value of Financial Instruments" (FAS 107), requires disclosure of fair value
information about financial instruments, whether or not recognized on the
balance sheet.
FAS 107 excludes certain financial instruments and all non-financial
instruments from its disclosure requirements. Accordingly, the aggregate fair
value amounts presented do not represent the underlying value of the Company.
In cases where quoted market prices are not available, fair values are based
on estimates using present value or other valuation techniques. Those fair
values are significantly affected by the assumptions used, including the
discount rate and estimates of cash flow. In that regard, the derived fair
value estimates cannot be substantiated by comparison to independent markets
and, in many cases, could not be realized in immediate settlement of the
instrument.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
RYLAND ACCEPTANCE CORPORATION FOUR AND SUBSIDIARIES
December 31, 1995 (dollars in thousands)
NOTE B--FAIR VALUES OF FINANCIAL INSTRUMENTS - (CONTINUED)
The estimated fair values of the company's financial instruments are as
follows:
<TABLE>
December 31,
1995 1994
----------------------------------------------
Fair Fair
Carrying Market Carrying Market
Value Value Value Value
----------------------------------------------
<S> <C> <C> <C> <C>
Assets:
Cash $11 $11 $36 $36
Mortgage-backed securities
held-to-maturity 110,007 118,761 179,769 182,146
Mortgage-backed securities
available-for-sale 47,846 47,846 - -
Mortgage loans receivable 66,685 71,596 83,908 86,300
Notes receivable 199,102 214,495 237,697 242,856
Funds held by trustee 26,231 26,231 25,164 25,164
Liabilities:
Bonds payable 437,376 471,906 513,883 535,163
</TABLE>
The company used the following methods and assumptions in estmating fair
values:
Cash: The carrying amounts of cash approximate fair values.
Mortgage-backed securities and mortgage loans receivable: Fair values are
estimated using quoted market prices for similar certificates, loans or
securities.
Notes receivable: Fair values are based on quoted market prices for
securities comparable to those that collateralize the notes receivable.
Funds held by trustee: The carrying amounts of funds held by trustee
approximate fair values.
Bonds payable: Fair values are based on quoted market prices of comparable
securities.
Because the Indentures prohibit liquidation of collateral for bonds payable,
fair values cannot be realized unless the corresponding bonds payable are
redeemed. As more fully described in Note C, the bonds can be redeemed before
maturity by the Company only under certain prescribed conditions.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
RYLAND ACCEPTANCE CORPORATION FOUR AND SUBSIDIARIES
December 31, 1995 (dollars in thousands)
NOTE C--BONDS PAYABLE
Bonds payable represent mortgage-backed bond series issued by the Company.
Neither Ryland, nor any affiliated entities have guaranteed, nor are they
otherwise obligated, with respect to these bond issues.
At December 31, 1995 and 1994, mortgage-backed bond series consisted of series
with various classes maturing in the years 2006 through 2019. Payments are
made on a periodic basis as a result of, and in amounts related to,
corresponding payments received on the underlying mortgage collateral. Also,
additional payments of the bonds may occur prior to maturity in accordance
with certain provisions of the Indenture and related Series Supplements
between the Company and the Trustee. At December 31, 1995 and 1994, the
classes of each series of bonds bear interest at fixed rates ranging from
7.25% to 12.625%.
During 1994, the Company acquired bonds of $12.8 million and the related
collateral from another company. These bonds had previously been issued from
the Company's shelf registration and accounted for as a sale under generally
accepted accounting principles.
Under certain provisions of the Indenture, a bond series or a class within
certain series may be redeemed at par prior to the stated maturity date. The
redemption may take place at the earlier of specified dates or when the
outstanding collateral value (as defined in the Indenture) of the mortgage
securities securing the bond series or class is less than or equal to a
specified percentage of its initial collateral value of such securities.
Certain classes within each of 8 series totaling $58.1 million were redeemed
in 1994 and certain classes within each of 17 series totaling $291.2 million
were redeemed in 1994.
The Company uses its shelf registration to issue bonds on behalf of other
companies. As of December 31, 1995, the Company had issued 56 series of bonds
under these arrangements. These bonds and the associated mortgage collateral
are excluded from the financial statements of the Company since these
transactions have been accounted for as sales of the associated mortgage
collateral in accordance with generally accepted accounting principles. The
outstanding principal balance at December 31, 1995 and 1994, of bonds issued
by the Company which is not included in the accompanying financial statements
is $2 billion and $2.5 billion, respectively. During the years ended December
31, 1995 and 1994, the Company did not issue any bonds.
At December 31, 1995, the Company had $626.2 million of collateralized
mortgage bonds remaining for issuance under a registration statement filed
with the Securities and Exchange Commission.
Also included in bonds payable at December 31, 1995 and 1994 are funding notes
payable totaling $.9 million and $1.0 million which represent BAC's
participation in bond series issued by an unaffiliated entity.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
RYLAND ACCEPTANCE CORPORATION FOUR AND SUBSIDIARIES
December 31, 1995 (dollars in thousands)
NOTE D--TRANSACTIONS WITH AFFILIATED COMPANIES
The Company records various intercompany transactions with affiliates and
Ryland. These transactions include ongoing charges related to the outstanding
bonds. The amount of these charges for the years ended December 31, 1995,
1994 and 1993 was $.2 million, $.4 million and $2.4 million, of which $.3
million, $.3 million, and $.5 million is recorded in interest revenue and
($.1) million, $.1 million and $1.9 million is recorded in other revenue,
respectively.
The Company is charged a finance charge which is based on the average
outstanding balance of advances made by Ryland and RMC. The amount of finance
charge, which has been recorded in interest expense, is $.3 million, $.3
million and $.5 million for the years ended December 31, 1995, 1994 and 1993,
respectively. Interest is calculated at approximate market rates. The
carrying values of Due to affiliate were $3,209 and $3,911 at December 31,
1995 and 1994, respectively.
Included in bonds payable are amounts which RMC holds totaling $72,704 and
$80,887 at December 31, 1995 and 1994, respectively. Interest incurred on the
bonds payable amounted to $7,380 and $9,254 in 1995 and 1994, respectively.
An affiliate performed the administration function through June 30, 1995 for
the bonds issued under the Company's shelf registration statement. The
affiliate was sold as of June 30, 1995 and continues to provide these
functions as an unaffiliated entity. There were no payable balances related to
administration fees to affiliated companies at December 31, 1995. Payable
balances related to administration fees to affiliated companies were $155 at
December 31, 1994.
In addition, an affiliate performs the loan servicing function for certain
mortgage loans collateralizing the bonds. All fees and related expenses in
connection with these services are recorded in the affiliates' financial
statements.
During 1991, RMC assumed the Company's obligation to maintain cash deposits
with the Trustee for mortgagor bankruptcy risk associated with the mortgage
collateral. At December 31, 1995 and 1994, cash deposits of
$.2 million and $1.7 million were maintained by RMC.
NOTE E--INCOME TAXES
The Company accounts for its income taxes under the liability method in
accordance with Statement of Financial Accounting Standards No. 109 ,
"Accounting for Income Taxes" (FAS 109), effective January 1, 1993. Prior to
the adoption of FAS 109, income taxes were accounted for in accordance with
FAS 96. As both FAS 96 and 109 required the liability method, the adoption of
FAS 109 did not have a material impact on the Company's financial statements.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
RYLAND ACCEPTANCE CORPORATION FOUR AND SUBSIDIARIES
December 31, 1995 (dollars in thousands)
NOTE E--INCOME TAXES - (CONTINUED)
Under the liability method, the deferred tax liability (asset) is determined
based on enacted tax rates and is subsequently adjusted for changes in tax
rates. A change in the deferred tax liability (asset) results in a charge or
credit to deferred tax expense. The Company's provision for income taxes for
the years ended December 31, is summarized as follows:
<TABLE>
1995 1994 1993
------------------------------------------------------
<S> <C> <C> <C>
Current:
Federal $ (85) $ (30) $ 545
State (18) (8) 117
------- ------- ------
Total current (103) (38) 662
======= ======= ======
Deferred:
Federal 88 58 (527)
State 19 12 (113)
------ ------ ------
Total deferred 107 70 (640)
------ ------ ------
Total provision $ 4 $ 32 $ 22
====== ====== ======
</TABLE>
The actual income tax rate differs from the statutory federal income tax rate
as follows:
<TABLE>
1995 1994 1993
---------------------------------------------------
<S> <C> <C> <C>
Statutory federal rate 35% 35% 35%
Increases (reductions):
State taxes 5 5 4
---- ---- ----
Total actual income tax rate 40% 40% 39%
==== ==== ====
</TABLE>
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
RYLAND ACCEPTANCE CORPORATION FOUR AND SUBSIDIARIES
December 31, 1995 (dollars in thousands)
NOTE E--INCOME TAXES - (CONTINUED)
Deferred income taxes reflect the net tax effects of temporary differences
between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. Significant components
of the Company's deferred tax liabilities and assets as of December 31, 1995
and December 31, 1994 are as follows (in thousands):
<TABLE>
12/31/95 12/31/94
---------------------------
<S> <C> <C>
Deferred tax assets:
Bond issuance discounts $367 $474
------ ------
Total deferred tax assets 367 474
------ ------
Deferred tax liability:
Unrealized excess market value $(809) $ -
----- -----
Total deferred tax liabilities (809) -
------ -----
Net deferred tax (liability) asset $(442) $ 474
====== =====
</TABLE>
The Company has determined that no valuation allowance for the deferred tax
asset is required.
<PAGE>
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:
Information in response to this Item is omitted pursuant to General
Instruction J.
ITEM 11. EXECUTIVE COMPENSATION:
Information in response to this Item is omitted pursuant to General
Instruction J.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT:
Information in response to this Item is omitted pursuant to General
Instruction J.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS:
Information in response to this Item is omitted pursuant to General
Instruction J.
PART IV
ITEM 14. EXHIBITS, CONSOLIDATED FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
FORM 8-K:
(a)(1) Consolidated Financial Statements.
The following financial statements are included in Part II, Item 8:
Report of Independent Auditors
Consolidated Balance Sheets-December 31, 1995 and 1994
Consolidated Statements of Earnings-Years ended December 31,
1995, 1994 and 1993
Consolidated Statements of Stockholder's Equity - Years ended
December 31, 1995, 1994 and 1993
Consolidated Statements of Cash Flows - Years ended December
31, 1995, 1994 and 1993
Notes to Consolidated Financial Statements
<PAGE>
(a)(2) Consolidated Financial Statement Schedules.
All schedules have been omitted because they are either
inapplicable or the required information has been given in the
consolidated financial statements or the notes thereto.
(A)(3) Exhibits.
3.1 Articles of Incorporation of Ryland Acceptance Corporation
Four (incorporated herein by reference to Exhibit to Company's
Form 10, filed February 13, 1985).
3.2 By-laws of Ryland Acceptance Corporation Four (incorporated
herein by reference to Exhibit to Report on Form 8-K (File No.
0-13199) dated April 22, 1987, filed May 6, 1987).
4.1 Indenture between Ryland Acceptance Corporation Four and S
Sovran Bank, N.A., as Trustee, dated February 1, 1985
(incorporated herein by reference to Exhibit to Report on Form
10-Q (File No. 0-13199) for the period ended March 31, 1985,
filed May 10, 1985).
4.2 Conformed copy of Series 1 Supplemental Indenture, dated as of
April 1, 1985, to Indenture between the Registrant and Sovran
Bank, N.A., as Trustee, dated February 1, 1985 (incorporated
herein by reference to Exhibit to Report on Form 10-Q (File
No. 0-13199) for the period ended March 31, 1985, filed May
10, 1985).
4.3 Conformed copy of Series 2 Supplemental Indenture, dated as of
June 1, 1985, to Indenture between the Registrant and Sovran
Bank, N.A., as Trustee, dated February 1, 1985 (incorporated
herein by reference to Exhibit to Report on Form 10-Q (File
No. 0-13199) for the period ended June 30, 1985, filed August
12, 1985).
4.4 Conformed copy of Series 3 Supplemental Indenture, dated as of
August 1, 1985, to Indenture between the Registrant and Sovran
Bank, N.A., as Trustee, dated February 1, 1985 (incorporated
herein by reference to Exhibit to Registration Statement No.
33-443, filed September 24, 1985).
4.5 Conformed copy of Series 4 Supplemental Indenture, dated as of
October 1, 1985, to Indenture between the Registrant and
Sovran Bank, N.A., as Trustee, dated February 1, 1985
(incorporated herein by reference to Exhibit to Report on Form
10-Q (File No. 0-13199) for the period ended September 30,
1985, filed November 12, 1985).
4.6 Conformed copy of Series 5 Supplemental Indenture, dated as of
October 1, 1985, to Indenture between the Registrant and
Sovran Bank, N.A., as Trustee, dated February 1, 1985
(incorporated herein by reference to Exhibit to Report on Form
10-Q (File No. 0-13199) for the period ended September 30,
1985, filed November 12, 1985).
4.7 Conformed copy of Series 6 Supplemental Indenture, dated as of
December 1, 1985, to Indenture between the Registrant and
Sovran Bank, N.A., as Trustee, dated February 1, 1985
(incorporated herein by reference to Exhibit to Registration
Statement No. 33-2757, filed January 16, 1986).
<PAGE>
4.8 Conformed copy of Series 7 Supplemental Indenture, dated as of
December 1, 1985, to Indenture between the Registrant and
Sovran Bank, N.A., as Trustee, dated February 1, 1985
(incorporated herein by reference to Exhibit to Registration
Statement No. 33-2757, filed January 16, 1986).
4.9 Amended and Restated Indenture for Series 8 Bonds and
subsequent Series of Bonds, dated as of February 1, 1986
(incorporated herein by reference to Exhibit to Report on Form
10-K (File No. 0-13199) for period ended December 31, 1985,
filed March 31, 1986).
4.10 Conformed copy of Series 8 Supplemental Indenture, dated as of
February 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-K (File No. 0-
13199) for the period ended December 31, 1985, filed March 31,
1986).
4.11 Conformed copy of Series 9 Supplemental Indenture, dated as of
February 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-K (File No. 0-
13199) for the period ended December 31, 1985, filed March 31,
1986).
4.12 Conformed copy of Series 10 Supplemental Indenture, dated as
of February 1, 1986, between the Registrant and Sovran Bank,
N.A., dated February 1, 1985 (incorporated herein by reference
to Exhibit to Report on Form 10-K (File No. 0-13199) for the
period ended December 31, 1985, filed March 31, 1986).
4.13 Conformed copy of Series 11 Supplemental Indenture, dated as
of April 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-Q (File No. 0-
13199) for the period ended March 31, 1986, filed May 15,
1986).
4.14 Conformed copy of Series 12 Supplemental Indenture, dated as
of April 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-Q (File No. 0-
13199) for the period ended March 31, 1986, filed May 15,
1986).
4.15 Conformed copy of Series 13 Supplemental Indenture, dated as
of April 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-Q (File No. 0-
13199) for the period ended March 31, 1986, filed May 15,
1986).
4.16 Conformed copy of Series 14 Supplemental Indenture, dated as
of May 1, 1986, to Indenture between the Registrant and Sovran
Bank, N.A., dated February 1, 1985 (incorporated herein by
reference to Exhibit to Report on Form 10-Q (File No. 0-13199)
for the period ended June 30, 1986, filed August 12, 1986).
4.17 Conformed copy of Series 15 Supplemental Indenture, dated as
of May 1, 1986, to Indenture between the Registrant and Sovran
Bank, N.A., dated February 1, 1985 (incorporated herein by
reference to Exhibit to Report on Form 10-Q (File No. 0-13199)
for the period ended June 30, 1986, filed August 12, 1986).
<PAGE>
4.18 Conformed copy of Series 16 Supplemental Indenture, dated as
of June 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-Q (File No. 0-
13199) for the period ended June 30, 1986, filed August 12,
1986).
4.19 Conformed copy of Series 17 Supplemental Indenture, dated as
of June 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-Q (File No. 0-
13199) for the period ended June 30, 1986, filed August 12,
1986).
4.20 Conformed copy of Series 18 Supplemental Indenture, dated as
of July 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-Q (File No. 0-
13199) for the period ended June 30, 1986, filed August 12,
1986).
4.21 Conformed copy of Series 19 Supplemental Indenture, dated as
of August 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement No. 33-
9191, filed September 30, 1986).
4.22 Conformed copy of Series 20 Supplemental Indenture, dated as
of September 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement No. 33-
9191, filed September 30, 1986).
4.23 Conformed copy of Series 21 Supplemental Indenture, dated as
of September 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement No. 33-
9191, filed September 30, 1986).
4.24 Conformed copy of Series 22 Supplemental Indenture, dated as
of September 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement No. 33-
9191, filed September 30, 1986).
4.25 Conformed copy of Series 23 Supplemental Indenture, dated as
of October 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-Q (File No. 0-
13199) for the period ended September 30, 1986, filed November
14, 1986).
4.26 Conformed copy of Series 24 Supplemental Indenture, dated as
of October 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-Q (File No. 0-
13199) for the period ended September 30, 1986, filed November
14, 1986).
<PAGE>
4.27 Conformed copy of Series 25 Supplemental Indenture, dated as
of October 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-Q (File No. 0-
13199) for the period ended September 30, 1986, filed November
14, 1986).
4.28 Conformed copy of Series 26 Supplemental Indenture, dated as
of November 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement No. 33-
11654, filed January 30, 1987).
4.29 Conformed copy of Series 27 Supplemental Indenture, dated as
of November 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement No. 33-
11654, filed January 30, 1987).
4.30 Conformed copy of Series 28 Supplemental Indenture, dated as
of December 1, 1986, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement No. 33-
11654, filed January 30, 1987).
4.31 Supplemental Indenture, dated as of December 1, 1986, to
Indenture between the Registrant and Sovran Bank, N.A., dated
February 1, 1985 (incorporated herein by reference to Exhibit
to Registration Statement No. 33-11654, filed January 30,
1987).
4.32 Conformed copy of Series 29 Supplemental Indenture, dated as
of January 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement No. 33-
11654, filed January 30, 1987).
4.33 Conformed copy of Series 30 Supplemental Indenture, dated as
of February 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement No. 33-
11654, filed January 30, 1987).
4.34 Conformed copy of Series 31 Supplemental Indenture, dated as
of January 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement No. 33-
11654, filed January 30, 1987).
4.35 Conformed copy of Series 32 Supplemental Indenture, dated as
of January 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement No. 33-
11654, filed January 30, 1987).
4.36 Supplemental Indenture, dated as of January 1, 1987, to
Indenture between the Registrant and Sovran Bank, N.A., dated
February 1, 1985 (incorporated herein by reference to Exhibit
to Report on Form 10-K (File No. 0-13199) for the period ended
December 31, 1986, filed March 31, 1987).
<PAGE>
4.37 Conformed copy of Series 33 Supplemental Indenture, dated as
of February 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-K (File No. 0-
13199) for the period ended December 31, 1986, filed March
31, 1987).
4.38 Conformed copy of Series 34 Supplemental Indenture, dated as
of February 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-K (File No. 0-
13199) for the period ended December 31, 1986, filed March 31,
1987).
4.39 Conformed copy of Series 35 Supplemental Indenture, dated as
of March 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 8-K (File No. 0-
13199) dated April 22, 1987, filed May 6, 1987).
4.40 Conformed copy of Series 36 Supplemental Indenture, dated as
of March 25, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 8-K (File No. 0-
13199) dated April 22, 1987, filed May 6, 1987).
4.41 Conformed copy of Series 37 Supplemental Indenture, dated as
of March 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 8-K (File No. 0-
13199) dated April 22, 1987, filed May 6, 1987).
4.42 Conformed copy of Supplemental Indenture, dated as of April 1,
1987, to Indenture between the Registrant and Sovran Bank,
N.A., dated February 1, 1985 (incorporated herein by reference
to Exhibit to Report on Form 10-Q (File No. 0-13199) for the
period ended March 31, 1987 filed May 15, 1987).
4.43 Conformed copy of Series 38 Supplemental Indenture, dated as
of April 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 8-K (File No. 0-
13199) dated April 22, 1987 filed May 6, 1987).
4.44 (Reserved)
4.45 Conformed copy of Series 40 Supplemental Indenture, dated as
of May 1, 1987, to Indenture between the Registrant and Sovran
Bank, N.A., dated February 1, 1985 (incorporated herein by
reference to Exhibit to Report on Form 10-Q (File No. 0-13199)
for the period ended June 30, 1987 filed August 15, 1987).
4.46 Conformed copy of Series 41 Supplemental Indenture, dated as
of May 1, 1987, to Indenture between the Registrant and Sovran
Bank, N.A., dated February 1, 1985 (incorporated herein by
reference to Exhibit to Report on Form 10-Q (File No. 0-13199)
for the period ended June 30, 1987 filed August 15, 1987).
<PAGE>
4.47 Conformed copy of Series 42 Supplemental Indenture, dated as
of May 1, 1987, to Indenture between the Registrant and Sovran
Bank, N.A., dated February 1, 1985 (incorporated herein by
reference to Exhibit to Report on Form 10-Q (File No. 0-13199)
for the period ended June 30, 1987 filed August 15, 1987).
4.48 Conformed copy of Series 43 Supplemental Indenture, dated as
of June 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-Q (File No. 0-
13199) for the period ended June 30, 1987 filed August 15,
1987).
4.49 Conformed copy of Series 44 Supplemental Indenture, dated as
of June 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-Q (File No. 0-
13199) for the period ended June 30, 1987 filed August 15,
1987).
4.50 Conformed copy of Series 45 Supplemental Indenture, dated as
of July 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement No. 33-
15260, filed June 29, 1987).
4.51 (Reserved)
4.52 Conformed copy of Series 47 Supplemental Indenture, dated as
of July 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement No. 33-
15260, filed June 29, 1987).
4.53 (Reserved)
4.54 Conformed copy of Series 49 Supplemental Indenture, dated as
of August 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199) dated August 27, 1987, filed October 15, 1987).
4.55 Conformed copy of Series 50 Supplemental Indenture, dated as
of September 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199) dated August 27, 1987, filed October 15, 1987).
4.56 Conformed copy of Series 51 Supplemental Indenture, dated as
of September 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199) dated August 27, 1987, filed October 15, 1987).
4.57 Conformed copy of Series 52 Supplemental Indenture, dated as
of September 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199) dated August 27, 1987, filed October 15, 1987).
<PAGE>
4.58 Conformed copy of Series 53 Supplemental Indenture, dated as
of October 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-Q (File No. 0-
13199) for the period ended September 30, 1987, filed November
13, 1987).
4.59 Conformed copy of Series 54 Supplemental Indenture, dated as
of October 1, 1987, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-Q (File No. 0-
13199) for the period ended September 30, 1987, filed November
13, 1987).
4.60 Amended and Restated Indenture between Ryland Acceptance
Corporation Four and Sovran Bank, N.A., as trustee, dated as
of July 1, 1987 (incorporated herein by reference to Exhibit
to Report on Form 10-K (File No. 0-13199) for the year ended
December 31, 1987, filed March 30, 1988).
4.61 Conformed copy of Series 55 Supplemental Indenture, dated as
of December 1, 1987 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-K (File No. 0-
13199) for the year ended December 31, 1987, filed March 30,
1988).
4.62 Conformed copy of Series 56 Supplemental Indenture, dated as
of December 1, 1987 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-K (File No. 0-
13199) for the year ended December 31, 1987, filed March 30,
1988).
4.63 Conformed copy of Series 57 Supplemental Indenture, dated as
of December 4, 1987 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-K (File No. 0-
13199) for the year ended December 31, 1987, filed March 30,
1988).
4.64 Conformed copy of Series 58 Supplemental Indenture, dated as
of December 1, 1987 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-K (File No. 0-
13199) for the year ended December 31, 1987, filed March 30,
1988).
4.65 (Reserved)
4.66 Conformed copy of Series 60 Supplemental Indenture, dated as
of December 1, 1987 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Report on Form 10-K (File No. 0-
13199) for the year ended December 31, 1987, filed March 30,
1988).
4.67 Conformed copy of Series 61 Supplemental Indenture, dated as
of February 1, 1988 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement (File No.
33-21612), filed April 29, 1988).
<PAGE>
4.68 Conformed copy of Series 62 Supplemental Indenture, dated as
of February 1, 1988 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement (File No.
33-21612), filed April 29, 1988).
4.69 Conformed copy of Series 63 Supplemental Indenture, dated as
of March 1, 1988 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement (File No.
33-21612), filed April 29, 1988).
4.70 Conformed copy of Series 64 Supplemental Indenture, dated as
of March 1, 1988 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement (File No.
33-21612), filed April 29, 1988).
4.71 (Reserved)
4.72 (Reserved)
4.73 Conformed copy of Series 67 Supplemental Indenture, dated as
of April 1, 1988 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement (File No.
33-21612), filed April 29, 1988).
4.74 Conformed copy of Supplemental Indenture, dated as of March 1,
1988 for Series 11, 13, 14, 16, 17, 18, 19, 20, 21, 22, 23,
24, 26, 27, 28, 29, 30, 31, 34, 36, 41, 43, 45, 49 and 51 to
Indenture between the Registrant and Sovran Bank, N.A., dated
February 1, 1985 (incorporated herein by reference to Exhibit
to Report on Form 10-Q (File No. 0-13199) for the period ended
March 31, 1988, filed May 16, 1988).
4.75 Conformed copy of Supplemental Indenture, dated as of March 1,
1988 to Indenture between the Registrant and Sovran Bank,
N.A., dated February 1, 1985 (incorporated herein by reference
to Exhibit to Report on Form 10-Q (File No. 0-13199) for the
period ended March 31, 1988, filed May 16, 1988).
4.76 Conformed copy of Series 68 Supplemental Indenture, dated as
of April 1, 1988 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Registration Statement (File No.
33-22561), filed June 16, 1988).
4.77 Conformed copy of Series 69 Supplemental Indenture, dated as
of May 1, 1988 to Indenture between the Registrant and Sovran
Bank, N.A., dated February 1, 1985 (incorporated herein by
reference to Exhibit to Registration Statement (File No. 33-
22561), filed June 16, 1988).
<PAGE>
4.78 Conformed copy of Series 70 Supplemental Indenture, dated as
of May 1, 1988 to Indenture between the Registrant and Sovran
Bank, N.A., dated February 1, 1985 (incorporated herein by
reference to Exhibit to Registration Statement (File No. 33-
22561), filed June 16, 1988).
4.79 Conformed copy of Series 71 Supplemental Indenture, dated as
of May 1, 1988 to Indenture between the Registrant and Sovran
Bank, N.A., dated February 1, 1985 (incorporated herein by
reference to Exhibit to Registration Statement (File No. 33-
22561), filed June 16, 1988).
4.80 Conformed copy of Series 72 Supplemental Indenture, dated as
of June 1, 1988 to Indenture between the Registrant and Sovran
Bank, N.A., dated February 1, 1985 (incorporated herein by
reference to Exhibit to Registration Statement (File No. 33-
23346), filed July 27, 1988).
4.81 Conformed copy of Series 73 Supplemental Indenture, dated as
of June 1, 1988 to Indenture between the Registrant and Sovran
Bank, N.A., dated February 1, 1985 (incorporated herein by
reference to Exhibit to Registration Statement (File No. 33-
23346), filed July 27, 1988).
4.82 Conformed copy of Series 74 Supplemental Indenture, dated as
of June 1, 1988 to Indenture between the Registrant and Sovran
Bank, N.A., dated February 1, 1985 (incorporated herein by
reference to Exhibit to Registration Statement (File No. 33-
23346), filed July 27, 1988).
4.83 Conformed copy of Series 75 Supplemental Indenture, dated as
of July 1, 1988 to Indenture between the Registrant and Sovran
Bank, N.A., dated February 1, 1985 (incorporated herein by
reference to Exhibit to Report on Form 10-Q (File No. 0-
13199), for the period ended June 30, 1988 filed August 15,
1988).
4.84 Conformed copy of Series 76 Supplemental Indenture, dated as
of July 1, 1988 to Indenture between the Registrant and Sovran
Bank, N.A., dated February 1, 1985 (incorporated herein by
reference to Exhibit to Report on Form 10-Q (File No. 0-
13199), for the period ended June 30, 1988 filed August 15,
1988).
4.85 Conformed copy of Series 77 Supplemental Indenture, dated as
of July 1, 1988 to Indenture between the Registrant and Sovran
Bank, N.A., dated February 1, 1985 (incorporated herein by
reference to Exhibit to Report on Form 10-Q (File No. 0-
13199), for the period ended June 30, 1988 filed August 15,
1988).
4.86 Conformed copy of Series 78 Supplemental Indenture, dated as
of August 1, 1988, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K, (File
No. 0-13199) dated July 28, 1988 filed September 8, 1988).
<PAGE>
4.87 Conformed copy of Series 79 Supplemental Indenture, dated as
of July 1, 1988, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K, (File
No. 0-13199) dated July 28, 1988 filed September 24, 1988).
4.88 Conformed copy of Series 80 Supplemental Indenture, dated as
of September 1, 1988, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K, (File
No. 0-13199) dated September 29, 1988 filed October 8, 1988).
4.89 Conformed copy of Series 81 Supplemental Indenture, dated as
of August 1, 1988, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K, (File
No. 0-13199) dated July 28, 1988 filed September 8, 1988).
4.90 Conformed copy of Series 82 Supplemental Indenture, dated as
of August 1, 1988, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K, (File
No. 0-13199) dated July 28, 1988 filed September 8, 1988).
4.91 Conformed copy of Series 83 Supplemental Indenture, dated as
of September 1, 1988, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K, (File
No. 0-13199) dated September 29, 1988 filed October 8, 1988).
4.92 Conformed copy of Series 84 Supplemental Indenture, dated as
of September 1, 1988 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K, (File
No. 0-13199) dated September 29, 1988 filed October 8, 1988).
4.93 Conformed copy of Series 85 Supplemental Indenture, dated as
of October 1, 1988, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to the Registration Statement No. 33-
26428 filed January 9, 1989).
4.94 Conformed copy of Series 86 Supplemental Indenture, dated as
of December 1, 1988, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to the Registration Statement No. 33-
26428 filed January 9, 1989).
4.95 Conformed copy of Series 87 Supplemental Indenture, dated as
of December 1, 1988 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to the Registration Statement No. 33-
26428 filed January 9, 1989).
<PAGE>
4.96 Conformed copy of Series 88 Supplemental Indenture, dated as
of December 1, 1988, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to the Registration Statement No. 33-
26428 filed January 9, 1989).
4.97 Conformed copy of Series 89 Supplemental Indenture, dated as
of January 1, 1989 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199) dated January 26, 1989, filed February 10, 1989).
4.98 Conformed copy of Series 90 Supplemental Indenture, dated as
of January 1, 1989 to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199) dated January 26, 1989, filed February 10, 1989).
4.99 Conformed copy of Series 91 Supplemental Indenture, dated as
of February 1, 1989, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199) dated February 28, 1989, filed March 13, 1989).
4.100 Conformed copy of Series 92 Supplemental Indenture, dated as
of April 1, 1989, to Indenture between the Registrant and
Sovran Bank, N.A., date February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199) dated June 29, 1989, filed July 13, 1989).
4.101 Conformed copy of Series 93 Supplemental Indenture, dated as
of June 1, 1989, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199) dated June 29, 1989, filed July 13, 1989).
4.102 Conformed copy of Series 94 Supplemental Indenture, dated as
of June 1, 1990, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199) dated June 29, 1989, filed July 12, 1990).
4.103 Conformed copy of Series 95 Supplemental Indenture, dated as
of January 1, 1991, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199) dated January 30, 1991, filed February 12, 1991).
4.104 Conformed copy of Series 96 Supplemental Indenture, dated as
of January 1, 1991, to Indenture between the Registrant and
Sovran Bank, N.A., dated February 1, 1985 (incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199) dated January 30, 1991, filed February 12, 1991).
<PAGE>
4.105 Conformed copy of Series 97 Supplemental Indenture, dated as
of April 30, 1991, to Indenture between the Registrant and
Sovran Bank, N.A., dated April 1, 1991, (incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199), filed May 9, 1991).
4.106 Form of Indenture between Registrant and NationsBank of
Virginia, N.A., as Trustee (Incorporated herein by reference
of Exhibit to Issuer's Post-Effective Amendment No. 1 to
Registration Statement on Form S-11 (No. 33-39357), filed June
3, 1993).
4.107 Form of Indenture between Registrant and Texas Commerce Bank
National Association, as Trustee (Incorporated herein by
reference to Exhibit to Issuer's Post-Effective Amendment No.
1 to Registration Statement on Form S-11 (No. 33-39357), filed
June 3, 1993).
4.108 Conformed Copy of Series 98 Supplemental Indenture between the
Registrant and NationsBank of Virginia, N.A., as Trustee,
dated as of September 1, 1993, to Indenture between the
Registrant and Sovran Bank, N.A., as Trustee, as Amended and
Restated as of July 1, 1987 (Incorporated herein by reference
to Exhibit to Current Report on Form 8-K (File No. 0-13199)
dated September 30, 1993, filed October 12, 1993).
4.109 Conformed Copy of Series 99 Supplemental Indenture between the
Registrant and NationsBank of Virginia, N.A., dated as of
October 1, 1993, to Indenture between the Registrant and
Sovran Bank, N.A., as Trustee, as Amended and Restated as of
July 1, 1987 (Incorporated herein by reference to Exhibit to
Current Report on Form 8-K (File No. 0-13199), filed November
12, 1993).
4.110 Conformed Copy of Series 98 Series Second Supplement to
Indenture, dated as of July 1, 1994, between the Registrant
and NationsBank of Virginia, N.A., as Trustee (Incorporated
herein by reference to Exhibit to Current Report on Form 8-K
(File No. 0-13199), dated June 1, 1994, filed April 19, 1995).
4.111 Conformed Copy of Series 98 Series Third Supplement to
Indenture, dated as of August 1, 1994, between Registrant and
NationsBank of Virginia, N.A., as Trustee (Incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199), dated June 1, 1994, filed April 19, 1995).
4.112 Conformed Copy of Series 99 Series Second Supplement to
Indenture, dated as of July 1, 1994, between Registrant and
NationsBank of Virginia, N.A., as Trustee (Incorporated herein
by reference to Exhibit to Current Report on Form 8-K (File
No. 0-13199), dated June 1, 1994, filed April 19, 1995).
21.1 Subsidiaries of the Registrant:
C. C. Holding Company was incorporated in Virginia on
March 29, 1988 to acquire and hold mortgage collateral subject
to the bond liability.
Brock Acceptance Corporation was incorporated in Delaware on
December 20, 1984 to acquire and hold mortgage collateral
subject to the bond liability.
24.1 Consent of Ernst & Young LLP, Independent Auditors.
25.1 Power of Attorney of Directors of registrant.
<PAGE>
27.1 Financial Data Schedule (electronic filing only)
99.1 Form of Guaranty Agreement with respect to Single-Family
(level payment) Mortgage-Backed Certificates between Servicer
and Government National Mortgage Association (Incorporated
herein by reference to Exhibit to Registration Statement No.
2-95839, filed February 13, 1985).
99.2 Form of Guaranty Agreement with respect to Graduated Payment
Mortgage-Backed Certificates between Servicer and Government
National Mortgage Association (Incorporated herein by
reference to Exhibit to Registration Statement No. 2-95839,
filed February 13, 1985).
99.3 Form of Mortgage Participation Certificate Agreement Series
700 (March, 1983) (Incorporated herein by reference to Exhibit
to Registration Statement No. 2-95839, filed February 13,
1985).
99.4 Federal National Mortgage Association Trust Indenture
(Incorporated herein by reference to Exhibit to Registration
Statement No. 2-95839, filed February 13, 1985).
99.5 Form of Funding Agreement (Incorporated herein by reference to
Exhibit to Amendment No. 1 to Registration Statement No. 2-
95839, filed March 13, 1985) and Funding Note (Incorporated
herein by reference to Exhibit to Report on Form 10-Q) (File
No. 0-13199) for period ended June 30, 1985, filed August 12,
1985).
99.6 Form of Servicing Agreement and Standard Provisions
(Incorporated herein by reference to Exhibit to Report on Form
10-Q (File No. 0-13199) for period ended June 30, 1985, filed
August 12, 1985).
99.7 Form of Master Servicing Agreement (Incorporated herein by
reference to Exhibit to Registrant's Registration Statement
No. 33-18860, filed December 3, 1987).
99.8 Form of Standard Terms to Master Servicing Agreement
(Incorporated herein by reference to Exhibit to Registrant's
Registration Statement No. 33-18860, filed December 3, 1987).
99.9 Form of Performance Bond (Incorporated herein by reference to
Exhibit to Report on Form 10-Q (File No. 0-13199) for period
ended June 30, 1985, filed August 12, 1985).
99.10 Form of Prospectus Supplement for Current Interest Bonds
(Incorporated herein by reference to Exhibit to Registration
Statement No. 33-2757, filed January 16, 1986).
99.11 Form of Prospectus Supplement for Capital Appreciation Bonds
(Incorporated herein by reference to Exhibit to Registration
Statement No. 33-2757, filed January 16, 1986).
<PAGE>
99.12 Form of Primary Mortgage Insurance Policy (Incorporated herein
by reference to Exhibit to Registration Statement No. 2-95839,
filed February 13, 1985).
99.13 Form of Full Coverage Insurance Policy (Incorporated herein by
reference to Exhibit to Registration Statement No. 2-95839,
filed February 13, 1985).
99.14 Form of FHA Mortgage Insurance Certificate (Incorporated
herein by reference to Exhibit to Registration Statement No.
2-95839, filed February 13, 1985).
99.15 Form of VA Loan Guaranty (Incorporated herein by reference to
Exhibit to Registration Statement No. 2-95839, filed February
13, 1985).
99.16 Form of Pool Insurance Policy (Incorporated herein by
reference to Exhibit to Report on Form 10-Q (File No. 0-13199)
for period ended June 30, 1985, filed August 12, 1985).
99.17 Form of Standard Hazard Insurance Policy (Incorporated herein
by reference to Exhibit to Registration Statement No. 2-95839,
filed February 13, 1985).
99.18 Form of Special Hazard Insurance Policy (Incorporated herein
by reference to Exhibit to Registrant's Report on Form 10-Q
(File No. 0-13199) for period ended June 30, 1986, filed
August 12, 1986).
99.19 Form of Mortgagor Bankruptcy Bond (Incorporated herein by
reference to Exhibit to Report on Form 10-Q (File No. 0-13199)
for period ended June 30, 1985, filed August 12, 1985).
99.20 Form of Surety Bond (Incorporated herein by reference to
Exhibit to Registration Statement No. 33-2757, filed January
16, 1986).
99.21 Form of Escrow Agreement for Incomplete Mortgage Loan Files
(Incorporated herein by reference to Exhibit to Registration
Statement No. 33-1919, filed September 30, 1986).
99.22 Form of Escrow Agreement for Missing Mortgage Certificates
(Incorporated herein by reference to Exhibit to Registration
Statement No. 33-1919, filed September 30, 1986).
99.23 First Supplement to Standard Provisions to Servicing Agreement
(Incorporated herein by reference to Exhibit to Report on Form
10-Q (File No. 0-13199) for period ended September 30, 1985,
filed November 12, 1985).
99.24 Second Supplement to Standard Provisions to Servicing
Agreement (Incorporated herein by reference to Exhibit to
Registration Statement No. 33-2757, filed January 16, 1986).
99.25 Standard Provisions to Servicing Agreement, January, 1986
Edition (Incorporated herein by reference to Exhibit to
Registrant's Annual Report on Form 10-K (File No. 0-13199) for
the period ended December 31, 1985, filed March 31, 1986).
99.26 First Supplement to Standard Provisions to Servicing
Agreement, January 1986 Edition, dated February 1, 1986
(Incorporated herein by reference to Exhibit to Registrant's
Annual Report on Form 10-K (File No. 0-13199) for the period
ended December 31, 1985, filed March 31, 1986).
<PAGE>
99.27 Form of Prospectus Supplement for sale of single class Bonds
with Redemption Fund (Incorporated herein by reference to
Exhibit to Registration Statement No. 33-4691, filed April 9,
1986).
99.28 Second Supplement to Standard Provisions to Servicing
Agreement, January 1986 Edition, dated April 1, 1986
(Incorporated herein by reference to Exhibit to Registrant's
Report on Form 10-Q (File No. 0-13199) for period ended March
31, 1986, filed May 15, 1986).
99.29 Third Supplement to Standard Provisions to Servicing
Agreement, January 1986 Edition, dated June 1, 1986
(Incorporated herein by reference to Exhibit to Registrant's
Report on Form 10-Q (File No. 0-13199) for the period ended
June 30, 1986, filed August 12, 1986).
99.30 Fourth Supplement to Standard Provisions to Servicing
Agreement, January 1986 Edition, dated September 1, 1986
(Incorporated herein by reference to Exhibit to Registration
Statement No. 33-9191, filed September 30, 1986).
99.31 Fifth Supplement to Standard Provisions to Servicing
Agreement, January 1986 Edition, dated February 1, 1987
(Incorporated herein by reference to Exhibit to Registrant's
Registration Statement No. 33-18098, filed October 23, 1987).
99.32 Sixth Supplement to Standard Provisions to Servicing
Agreement, January 1986 Edition, dated March 1, 1987
(Incorporated herein by reference to Exhibit to Registrant's
Registration Statement No. 33-18098, filed October 23, 1987).
99.33 Seventh Supplement to Standard Provisions to Servicing
Agreement, January 1986 Edition, dated July 1, 1987
(Incorporated herein by reference to Exhibit to Registrant's
Registration Statement No. 33-18098, filed October 23, 1987).
99.34 Eighth Supplement to Standard Provisions to Servicing
Agreement, January 1986 Edition, dated September 1, 1987
(Incorporated herein by reference to Exhibit to Registrant's
Registration Statement No. 33-18098, filed October 23, 1987).
99.35 First Supplement to Standard Terms to Master Servicing
Agreement, dated October 1, 1987 (Incorporated herein by
reference to Exhibit to Registrant's Registration Statement
No. 33-18860, filed December 3, 1987).
99.36 Selected Provisions of the RAC Mortgage Investment Corporation
Seller/Servicer Guide (Incorporated herein by reference to
Exhibit to Registrant's Report on Form 8-K (File No. 0-13199)
dated and filed July 6, 1988).
99.37 Form of Master Servicing Agreement among the Registrant, RAC
Mortgage Investment Corporation, and Ryland Mortgage Company
and Form of Standard Terms thereto (Incorporated herein by
reference to Exhibit to Registrant's Report on Form 8-K (File
No. 0-13199) dated and filed July 6, 1988).
99.38 Form of Primary Mortgage Insurance Policy issued by PMI
Mortgage Insurance Company (Incorporated herein by reference
to Exhibit to Registrant's Registration Statement No. 33-
39357, filed March 1, 1991).
<PAGE>
99.39 Form of Primary Mortgage Insurance Company Policy issued by
General Electric Mortgage Insurance Company (Incorporated
herein by reference to Exhibit to Registrant's Registration
Statement No. 33-39357, filed March 1, 1991).
99.40 Form of Primary Mortgage Insurance Policy issued by United
Guaranty Residential Insurance Company (Incorporated herein by
reference to Exhibit to Registrant's Registration Statement
No. 33-39357, filed March 1, 1991).
99.41 Form of Pool Insurance Policy issued by PMI Mortgage Insurance
Company (Incorporated herein by reference to Exhibit to
Registrant's Registration Statement No. 33-39357, filed March
1, 1991).
99.42 Form of Pool Insurance Policy issued by General Electric
Mortgage Insurance Company (Incorporated herein by reference
to Exhibit to Registrant's Registration Statement No. 33-
39357, filed March 1, 1991).
99.43 Form of Pool Insurance Policy issued by United Guaranty
Residential Insurance Company (Incorporated herein by
reference to Exhibit to Registrant's Registration Statement
No. 33-39357, filed March 1, 1991).
99.44 Standard Provisions to Servicing Agreement (February 1989
Edition) (Incorporated herein by reference to Exhibit to
Ryland Mortgage Securities Corporation's Registration
Statement on Form S-11 (No. 33-27345).
99.45 Standard Provisions of the Saxon Mortgage Funding Corporation
Seller/Servicer Guide (December 1992 Edition) (Incorporated
herein by reference to Exhibit to Saxon Mortgage Securities
Corporation's Registration Statement on Form S-11 (No. 33-
57204).
(b) Reports on Form 8-K:
None
<PAGE>
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.
RYLAND ACCEPTANCE CORPORATION FOUR
By: /s/ Michael C. Brown
------------------------------------
Michael C. Brown, Director
Dated: March 30, 1996
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
/s/ Michael C. Brown
------------------------------------
Michael C. Brown,
Director
Dated: March 30, 1996
/s/ Patricia S. Gloth
------------------------------------
Patricia S. Gloth,
Vice-President, Financial Operations
Dated: March 30, 1996
A Majority of the Board of Directors:
By: /s/ Michael C. Brown
------------------------------------
For Himself Michael C. Brown, and as
Attorney-in-Fact
Dated: March 30, 1996
<PAGE>
SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO
SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OF REGISTRANTS WHICH HAVE
NOT REGISTERED SECURITIES PURSUANT TO SECTION 12 OF THE ACT:
Pursuant to the Registrant's Trust Indenture, the Registrant must furnish all
Holders of bonds of a series an Annual Report within 120 days of the
Registrant's year end. The Annual Report to bondholders for the year ended
December 31, 1995 will be furnished to the bondholders subsequent to the
filing of this Annual report on Form 10-K. The Registrant does not provide
its security holders with proxy statements or other proxy soliciting material.
<PAGE>
INDEX OF EXHIBITS:
PAGE OF
SEQUENTIALLY
NUMBERED PAGES
24.1 Consent of Ernst & Young LLP, Independent Auditors 60
25.1 Power of Attorney of Directors of registrant 61
27.1 Financial Data Schedule 62
<PAGE>
EXHIBIT 24.1
CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement
(Form S-3 No. 33-39357) of Ryland Acceptance Corporation Four and in the
related Prospectus of our report dated February 5, 1996, with respect to the
consolidated financial statements of Ryland Acceptance Corporation Four
included in this Annual Report (Form 10-K) for the year ended December 31,
1995.
/s/ Ernst & Young LLP
---------------------
Baltimore, Maryland
March 27, 1996
<PAGE>
EXHIBIT 25.1
RYLAND ACCEPTANCE CORPORATION FOUR
Power of Attorney
KNOW ALL MEN BY THESE PRESENTS that the undersigned directors and officers of
Ryland Acceptance Corporation Four, a Maryland corporation, constitute and
appoint Michael C. Brown as the true and lawful agent and attorney-in-fact of
the undersigned with full power and authority in said agent and attorney-in-
fact to sign for the undersigned in their respective names as directors and
officers of Ryland Acceptance Corporation Four, the Annual Report on Form 10-K
of Ryland Acceptance Corporation Four, for the fiscal year ended December 31,
1995, to be filed with the Securities and Exchange Commission under the
Securities Exchange Act of 1934. We hereby confirm all acts taken be such
agent and attorney-in-fact as herein authorized.
Dated: March 30, 1996
By:
------------------------------------
Title: Michael C. Brown, Director
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE RYLAND
ACCEPTANCE CORPORATION FOUR FORM 10-K405 FOR THE PERIOD ENDED 12/31/95 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 11
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 454200
<CURRENT-LIABILITIES> 0
<BONDS> 437376
<COMMON> 10
0
0
<OTHER-SE> 1220
<TOTAL-LIABILITY-AND-EQUITY> 454200
<SALES> 0
<TOTAL-REVENUES> 44557
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 110
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 44436
<INCOME-PRETAX> 11
<INCOME-TAX> 4
<INCOME-CONTINUING> 7
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
