- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: December 5, 1997
(Date of earliest event reported)
MERRILL LYNCH MORTGAGE INVESTORS INC. (as depositor under the Trust Agreement,
dated as of December 1, 1997, and pursuant to which an Indenture was entered
into, providing for, inter alia, the issuance of PacificAmerica Home-Equity Loan
Asset-Backed Notes, Series 1997-1)
Merrill Lynch Mortgage Investors, Inc.
(Exact name of registrant as specified in its charter)
Delaware 333-24327 33-3416059
- -------- --------- ----------
(State or Other Juris- (Commission (I.R.S. Employer
diction of Incorporation) File Number) Identification No.)
250 Vesey Street World Financial Center,
North Tower-10th Floor,
New York, New York 10281
- ------------------ -----
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code:(212) 449-1000
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
MERRILL LYNCH MORTGAGE
INVESTORS, INC.
By: /s/ Peter Cerwin
---------------------
Name: Peter Cerwin
Title: Vice President
Dated: December 23, 1997
<PAGE>
Item 2. ACQUISITION OR DISPOSITION OF ASSETS
On December 23, 1997 following the closing of the initial issuance of
the PacificAmerica Home Equity Loan Notes Series 1997-1, pursuant to a Purchase
Agreement the PacificAmerica Home Equity Loan Trust, Series 1997-1 (the
"Issuer") purchased from the PacificAmerica Money Center, Inc. (the "Seller")
certain Subsequent Mortgage Loans, as defined in the Home Equity Loan Purchase
Agreement (the "Purchase Agreement") among the Issuer, Bankers Trust Company of
California, N.A., the Seller and Merrill Lynch Mortgage Investors, Inc., with an
aggregate principal balance equal to $24,240,248.14 with funds on deposit in the
pre-funding account established pursuant to the Purchase Agreement at a purchase
price equal to the principal balance thereof, which Subsequent Mortgage Loans
were conveyed to the Issuer pursuant to a Subsequent Transfer Instrument, dated
December 23, 1997, between the Issuer and the Seller (the "Instrument") (the
Mortgage Loan Schedule that is the subject of such Instrument is filed in paper
pursuant to a hardship exemption, as provided in Rule 202 of Regulation S-T).
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a) Not applicable
(b) Not applicable
(c) Exhibits:
Item 601(a) of
Regulation S-K
Exhibit No. Exhibit No. Description
- ----------- ----------- -----------
1 99.1
Subsequent Transfer
Instrument, dated as of
December 23, 1997 between
PacificAmerica Money
Center, Inc. as seller,
PacificAmerica Home Equity
Loan Trust Series 1997-1,
as issuer.
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ----------- ----
1 Subsequent Transfer Instrument 8
<PAGE>
EXHIBIT 1
SUBSEQUENT TRANSFER INSTRUMENT
Pursuant to this Subsequent Transfer Instrument (the
"Instrument"), dated December 23, 1997, between PacificAmerica Money Center,
Inc. as seller (the "Seller"), and PacificAmerica Home Equity Loan Trust Series
1997-1 as issuer (the "Issuer"), and pursuant to the Home Equity Loan Purchase
Agreement, dated as of December 11, 1997, among the Seller, the Issuer, Merrill
Lynch Mortgage Investors, Inc. and Bankers Trust Company of California, N.A.
(the "Home Equity Loan Purchase Agreement"), the Seller and the Issuer agree to
the sale by the Seller and the purchase by the Issuer of the Mortgage Loans
listed on the attached Subsequent Mortgage Loan Schedule (the "Subsequent
Mortgage Loans").
Capitalized terms used and not defined herein have their
respective meanings as set forth in Section 1.1 of the Home Equity Loan Purchase
Agreement, which meanings are incorporated by reference herein. All other
capitalized terms used herein shall have the meanings specified herein.
Section 1. CONVEYANCE OF SUBSEQUENT MORTGAGE LOANS.
(a) The Seller does hereby sell, transfer, assign, set over
and convey to the Issuer, without recourse, all of its right, title and interest
in and to the Subsequent Mortgage Loans, and including all principal received
and interest accruing on the Subsequent Mortgage Loans on and after the related
Subsequent Cut-off Date, and all items with respect to the Subsequent Mortgage
Loans to be delivered pursuant to Section 2.2 of the Home Equity Loan Purchase
Agreement; provided, however, that the Seller reserves and retains all right,
title and interest in and to principal received and interest accruing on the
Subsequent Mortgage Loans prior to the related Subsequent Cut-off Date. The
Seller, contemporaneously with the delivery of this Agreement, has delivered or
caused to be delivered to the Indenture Trustee each item set forth in Section
2.2 of the Home Equity Loan Purchase Agreement. The transfer to the Issuer by
the Seller of the Subsequent Mortgage Loans identified on the Subsequent
Mortgage Loan Schedule shall be absolute and is intended by the Seller, the
Issuer, the Indenture Trustee and the Noteholders to constitute and to be
treated as a sale by the Seller.
The parties hereto intend that the transactions set forth
herein constitute a sale by the Seller to the Issuer on the Subsequent Transfer
Date of all the Seller's right, title and interest in and to the Subsequent
Mortgage Loans, and other property as and to the extent described above. In the
event the transactions set forth herein shall be deemed not to be a sale, the
Seller hereby grants to the Issuer as of the Subsequent Transfer Date a security
interest in all of the Seller's right, title and interest in, to and under the
Subsequent Mortgage Loans, and such other property, to secure all of the
Issuer's obligations hereunder, and this Agreement shall constitute a security
agreement under applicable law. The Seller agrees to take or cause to be taken
such actions and to execute such documents, including without limitation the
filing of all necessary UCC-1
<PAGE>
financing statements filed in the State of Delaware and the State of California
(which shall be submitted for filing as of the Subsequent Transfer Date), any
continuation statements with respect thereto and any amendments thereto required
to reflect a change in the name or corporate structure of the Seller or the
filing of any additional UCC-1 financing statements due to the change in the
principal office of the Seller, as are necessary to perfect and protect the
Issuer's interests in each Subsequent Mortgage Loan and the proceeds thereof.
(b) The expenses and costs relating to the delivery of the
Subsequent Mortgage Loans, this Instrument and the Home Equity Loan Purchase
Agreement shall be borne by the Seller.
(c) Additional terms of the sale are set forth on Attachment A
hereto.
Section 2. REPRESENTATIONS AND WARRANTIES; CONDITIONS
PRECEDENT.
(a) The Seller hereby affirms the representations and
warranties set forth in Section 3.1 of the Home Equity Loan Purchase Agreement
that relate to the Seller or the Subsequent Mortgage Loans as of the date
hereof. The Seller hereby confirms that each of the conditions set forth in
Section 2.3(b) of the Home Equity Loan Purchase Agreement are satisfied as of
the date hereof and further represents and warrants that each Subsequent
Mortgage Loan complies with the requirements of this Instrument and Section
2.3(c) of the Home Equity Loan Purchase Agreement.
(b) The Seller is solvent, is able to pay its debts as they
become due and has capital sufficient to carry on its business and its
obligations hereunder; it will not be rendered insolvent by the execution and
delivery of this Instrument or by the performance of its obligations hereunder
nor is it aware of any pending insolvency; no petition of bankruptcy (or similar
insolvency proceeding) has been filed by or against the Seller prior to the date
hereof;
(c) All terms and conditions of the Home Equity Loan Purchase
Agreement are hereby ratified and confirmed; provided, however, that in the
event of any conflict the provisions of this Instrument shall control over the
conflicting provisions of the Home Equity Loan Purchase Agreement.
Section 3. RECORDATION OF INSTRUMENT.
To the extent permitted by applicable law, this Instrument, or
a memorandum thereof if permitted under applicable law, is subject to
recordation in all appropriate public offices for real property records in all
of the counties or other comparable jurisdictions in which any or all of the
properties subject to the Mortgages are situated, and in any other appropriate
public recording office or elsewhere, such recordation to be effected by the
Master Servicer at the Noteholders' expense on direction of the Majority
Noteholders or the Note Insurer, but only when accompanied by an Opinion of
Counsel to the effect that such recordation materially and
<PAGE>
beneficially affects the interests of the Noteholders or the Note Insurer or is
necessary for the administration or servicing of the Mortgage Loans.
Section 4. GOVERNING LAW.
This Instrument shall be construed in accordance with the laws
of the State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws, without giving
effect to principles of conflicts of law.
Section 5. COUNTERPARTS.
This Instrument may be executed in one or more counterparts
and by the different parties hereto on separate counterparts, each of which,
when so executed, shall be deemed to be an original; such counterparts,
together, shall constitute one and the same instrument.
Section 6. SUCCESSORS AND ASSIGNS.
This Instrument shall inure to the benefit of and be binding
upon the Seller and the Issuer and their respective successors and assigns.
PACIFICAMERICA MONEY CENTER, INC.
By: /s/ Charles Siegel
-----------------------
Name: Charles Siegel
Title: Chief Financial Officer
PACIFICAMERICA HOME EQUITY LOAN
TRUST SERIES 1997-1
By: WILMINGTON TRUST COMPANY, not in its
individual capacity but solely in its
capacity as Owner Trustee
By: /s/ Emmet Harmon
----------------------
Authorized Signatory
<PAGE>
ATTACHMENTS
A. Additional terms of the sale.
B. Schedule of Subsequent Mortgage Loans.
C. Opinion of Seller's Counsel (provided upon request)
D. Seller's Officer's Certificate.
E. Seller's Officer's Certificate (confirmation of Note Insurer approval).
<PAGE>
PACIFICAMERICA HOME EQUITY LOAN
ASSET-BACKED-
NOTES, SERIES 1997-1
ATTACHMENT A TO SUBSEQUENT TRANSFER INSTRUMENT
Series 1997-1
December 23, 1997
A.
1. Subsequent Cut-off Date: December 23, 1997
2. Pricing Date: December 23, 1997
3. Subsequent Transfer Date: December 23, 1997
4. Aggregate Principal Balance of the Subsequent Mortgage Loans as of
the Subsequent Cut-off Date: $24,240,248.14
5. Purchase Price: 100.00%
B.
As to all the Subsequent Mortgage Loans the subject of this Instrument:
1. Longest stated term to maturity: 360 months
2. Minimum Mortgage Rate: 9.35 %
3. Maximum Mortgage Rate: 14.35 %
4. WAC of all Mortgage Loans: 10.98 %
5. WAM of all Mortgage Loans: 6.92 %
6. Largest Principal Balance: $311,850.00
7. Non-owner occupied Mortgaged Properties: 1.70 %
8. California zip code concentration: 13.35 %
9. Condominiums: 4.49 %
10. Single-family Detached: 84.76 %
11. Weighted average term since origination: 357.33 months
12. January/February/March 1998 first payment date: 98.80 %
<PAGE>
PACIFICAMERICA HOME EQUITY LOAN TRUST, SERIES 1997-1
ATTACHMENT B TO SUBSEQUENT TRANSFER INSTRUMENT
December 23, 1997
IN ACCORDANCE WITH RULE 202 OF REGULATION S-T,
THE MORTGAGE LOAN SCHEDULES ARE BEING FILED IN PAPER PURSUANT TO
A CONTINUING HARDSHIP EXEMPTION
<PAGE>
ATTACHMENT C
OFFICER'S CERTIFICATE
SUBSEQUENT TRANSFER
PACIFICAMERICA MONEY CENTER, INC.
I, Charles Siegel, hereby certify that I am the duly elected Chief
Financial Officer of PacificAmerica Money Center, Inc. (the "Seller") a
corporation organized under the laws of the State of Delaware, that I have made
such reasonable investigation as I have deemed necessary to deliver this
Certificate, including discussions with responsible officers of the Seller and
further certify to the best of my knowledge as follows:
1. The Seller is in good standing under the laws of the State
of Delaware.
2. Each person who, as an officer or representative of the
Seller, signed the Subsequent Transfer Instrument, dated as of December
23, 1997, between the Seller and PacificAmerica Home Equity Loan Trust
Series 1997-1 (the "Issuer") and any other document delivered prior
hereto or on the date hereof in connection with the transfer of the
Subsequent Mortgage Loans and the transactions described in the Home
Equity Loan Purchase Agreement (the "Agreement"), dated as of December
11, 1997 among PacificAmerica Money Center, Inc., Merrill Lynch
Mortgage Investors, Inc., Bankers Trust Company of America, N.A. and
the Issuer, at the respective times of such signing and delivery, and
is now, duly elected or appointed, qualified and acting as such officer
or representative, and the signatures of such persons appearing on such
documents are their genuine signatures.
3. With respect to its transfer of the Subsequent Mortgage
Loans and the transactions contemplated by the Agreement, the Seller
has complied in all material respects with all the agreements by which
it is bound and has satisfied in all material respects all the
conditions on its part to be performed or satisfied prior to the
Subsequent Transfer Date other than those which have been waived
pursuant to the terms of the Agreement.
4. Attached hereto as Exhibit I (provided upon request) is a
certified true copy of the resolutions of the Board of Directors of the
Seller with respect to the sale of the Subsequent Mortgage Loans
subject to the Agreements, and the same are in full force and effect
and have not been revoked, repealed or amended. Attached as Exhibit II
hereto (provided upon request) is a true and correct copy of the
Certificate of Incorporation of PacificAmerica which is in full force
and effect on the date hereof. Attached as Exhibit III (provided upon
request) is a true and correct copy of the By-Laws of PacificAmerica
which continue in force on the date hereof. Attached as Exhibit IV
(provided upon request) hereto is a true and correct copy of the Good
Standing Certificate of PacificAmerica dated December 18, 1997.
<PAGE>
5. Any necessary consents, approvals, authorizations or order
of any court or governmental agency or body, which are required for the
execution, delivery and performance by the Seller of or compliance by
the Seller with the Agreement, the sale of the Subsequent Mortgage
Loans as evidenced by the Agreement, or the consummation of the
transactions contemplated by the Agreement, have been obtained. The
Agreement and all related agreements have been authorized by the Board
of Directors of the Seller, such authorization being reflected in the
minutes of that Board and shall be maintained from the date of their
execution as records of the Seller. The Agreement and related
agreements are and will be from the time of their execution official
records of the Seller.
6. Each of the obligations of the Seller required to be
performed by it on or prior to the Subsequent Transfer Date pursuant to
the terms of the Agreement have been duly performed and complied with
and all of the representations and warranties of the Seller under the
Agreement are true and correct as of the Subsequent Transfer Date and
no event has occurred which, with notice or the passage of time, would
constitute a default under the Agreement.
7. Each condition precedent specified in Section 2.2
and Section 2.3 of the Agreement and each condition precedent
specified in the Subsequent Transfer Instrument has been satisfied by
the Seller.
Capitalized terms not defined herein have the meanings set
forth in the Agreement.
<PAGE>
IN WITNESS WHEREOF, I have hereunto signed my name and affixed the seal
of the Seller.
Dated: December 23, 1997
By: /s/ Charles Siegel
-----------------------------
Name: Charles Siegel
Title: Chief Financial Officer
<PAGE>
ATTACHMENT D
OFFICER'S CERTIFICATE OF
PACIFICAMERICA MONEY CENTER, INC.
RE: Note Insurer approval of Subsequent Mortgage Loans
December 23, 1997
Bankers Trust Company
of California, N.A.
3 Park Plaza, 16th Floor
Irvine, California 92614
Wilmington Trust Company
1100 North Market Street
Wilmington, Delaware 19890
Re: Home Equity Loan Purchase Agreement, dated as of December 11, 1997
(the "Purchase Agreement"), among PacificAmerica Money Center,
Inc. (the "Seller"), PacificAmerica Home Equity Loan Trust Series
1997-1, a Delaware business trust (the "Issuer"), Bankers Trust
Company of California, N.A., as indenture trustee (the "Indenture
Trustee") and Merrill Lynch Mortgage Investors, Inc., relating to
PacificAmerica Home Equity Loan Asset-Backed Notes and
Certificates, Series 1997-1 (Subsequent Mortgage Loan Transfer
December 23, 1997
-------------------------------------------------------------------
Ladies and Gentleman:
In accordance with Section 2.3(b)(vi) of the above-captioned
Purchase Agreement, the undersigned hereby certifies the following:
(a) The Subsequent Mortgage Loans identified on the Subsequent Mortgage
Loan Schedule attached to the related Subsequent Transfer Instrument delivered
by the Seller on December 23, 1997 conform to the representations and warranties
of the Insurance Agreement (the "Insurance Agreement") dated as of December 1,
1997 among Financial Security Assurance (the "Note Insurer"), PacificAmerica
Money Center, Inc., the PacificAmerica Home Equity Loan Trust Series 1997-1,
Merrill Lynch Mortgage Investors, Inc. and Bankers Trust Company of California,
N.A. and the Note Insurer has informed the Seller that the Subsequent Mortgage
Loans are acceptable to the Note Insurer in its sole discretion.
(b) The undersigned is a duly authorized representative of the
Seller and is authorized to execute and deliver this certificate.
<PAGE>
Capitalized terms used herein and not otherwise defined shall have the
meanings assigned to them in the Purchase Agreement.
IN WITNESS WHEREOF, I have hereunto signed my name.
PACIFICAMERICA MONEY CENTER, INC.
Dated: December 23, 1997 By: /s/ Charles Siegel
----------------------------------
Name: Charles Siegel
Title: Chief Financial Officer
