SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 15, 1999
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Chase Funding, Inc.
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(Exact name of registrant as specified in its charter)
New York 333-64131 13-3840732
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
343 Thornall Street, Edison, New Jersey 08837
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(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area code: (732) 205-0600
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Not applicable
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(Former name or former address, if changed since last report.)
<PAGE>
ITEM 5. OTHER EVENTS
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Attached as an exhibit is an addendum (the "Addendum") to certain
Computational Materials (as defined in the no-action letter dated May 20, 1994
issued by the Securities and Exchange Commission to Kidder, Peabody Acceptance
Corporation I, Kidder, Peabody & Co. Incorporated and Kidder Structured Asset
Corporation) furnished to the Registrant by Chase Securities Inc., Lehman
Brothers Inc. and Prudential Securities Incorporated (collectively, the
"Underwriters") in respect of the Registrant's proposed offering of Chase
Funding Mortgage Loan Asset-Backed Certificates, Series 1999-2 (the
"Certificates").
The Certificates will be offered pursuant to a Prospectus and
related Prospectus Supplement (together, the "Prospectus"), which will be filed
with the Commission pursuant to Rule 424 under the Securities Act of 1933, as
amended (the "Act"). The Certificates will be registered pursuant to the Act
under the Registrant's Registration Statement on Form S-3 (No. 333-64131) (the
"Registration Statement"). The Registrant hereby incorporates the Addendum by
reference in the Registration Statement.
The Addendum was prepared solely by the Underwriters, and the
Registrant did not prepare or participate in the preparation of the Addendum.
Any statement or information contained in the Addendum shall be
deemed to be modified or superseded for purposes of the Prospectus and the
Registration Statement by statements or information contained in the Prospectus.
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<PAGE>
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
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(c) Exhibits
Item 601(a)
of Regulation S-K
Exhibit No. Description
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(99) Addendum dated June 15, 1999
to Computational Materials
dated June 9, 1999 prepared
by Chase Securities Inc.,
Lehman Brothers Inc. and
Prudential Securities
Incorporated in connection
with Chase Funding Mortgage
Loan Asset-Backed
Certificates, Series 1999-2
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<PAGE>
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 hereunto duly authorized.
CHASE FUNDING, INC.
Date: June 15, 1999
By: /S/ EILEEN LINDBLOM
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Name: Eileen Lindblom
Title: Vice President
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<PAGE>
INDEX TO EXHIBITS
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Paper (P) or
Exhibit No. Description Electronic (E)
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(99) Addendum dated June 15, E
1999 to Computational
Materials dated June 9,
1999 prepared by Chase
Securities Inc., Lehman
Brothers Inc. and
Prudential Securities
Incorporated in
connection with Chase
Funding Mortgage Loan
Asset-Backed
Certificates, Series
1999-2
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CHASE FUNDING
MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 1999-2
$580,000,000 (APPROXIMATE)
Subject to Revision
June 15, 1999 - Addendum to June 9, 1999 Computational Materials
The analysis in this report is based on information provided by Chase Manhattan
Mortgage Corporation (the "Seller"). Chase Securities Inc. ("CSI") makes no
representations as to the accuracy or completeness of the information contained
herein. The information contained herein is qualified in its entirety by the
information in the Prospectus and Prospectus Supplement for this transaction.
The information contained herein is preliminary as of the date hereof,
supersedes any previous information delivered to you by CSI and will be
superseded by the applicable final Prospectus and Prospectus Supplement and any
other information subsequently filed with the Securities and Exchange
Commission. These materials are subject to change, completion, or amendment from
time to time without notice, and CSI is under no obligation to keep you advised
of such changes. These materials are not intended as an offer or solicitation
with respect to the purchase or sale of any security. Any investment decision
with respect to the securities should be made by you based upon the information
contained in the final Prospectus Supplement and Prospectus relating to the
securities. You should consult your own counsel, accountant, and other advisors
as to the legal, tax, business, financial and related aspects of a purchase of
these securities.
The attached information has been prepared by CSI in reliance upon information
furnished by the Seller. Such information may not be provided to any third party
other than the addressee's legal, tax, financial and/or accounting advisors for
the purposes of evaluating said material. No assurance can be given as to the
information's accuracy, appropriateness or completeness in any particular
context. Neither CSI nor any of its affiliates makes any representation or
warranty as to the actual rate or timing of payments on any of the underlying
assets or the payments or yield on the securities.
THIS INFORMATION IS FURNISHED TO YOU SOLELY BY CSI AND NOT BY THE ISSUER OF THE
SECURITIES OR ANY OF ITS AFFILIATES (OTHER THAN CSI). CSI IS ACTING AS
UNDERWRITER AND NOT ACTING AS AGENT FOR THE ISSUER IN CONNECTION WITH THE
PROPOSED TRANSACTION.
<PAGE>
The tables sent to you as part of the June 9, 1999 Computational Materials (the
"Yield Tables") setting forth the yields, average lives, durations, first
principal payment dates and last principal payment dates for each class of
certificates were prepared on the basis of certain assumptions, including an
assumption that the mortgage loans included in the mortgage pool consist of 18
mortgage loans having the actual characteristics of the mortgage loans described
on the table set forth below.
FIXED-RATE AND ADJUSTABLE-RATE MORTGAGE LOAN GROUP
<TABLE>
<CAPTION>
Original
Prepay Prepay Amort Gross Original Amort
Loan Type Rate Type PRINCIPAL WAC Net Wac Term Term Age
=========================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 HEP 23 Level 55,654,500.52 10.187 9.677 180 360 3
2 HEP 23 Level 380,132.48 8.325 7.815 120 120 2
3 HEP 23 Level 24,693,538.52 9.299 8.789 180 180 2
4 HEP 23 Level 6,059,268.52 9.932 9.422 240 240 3
5 HEP 23 Level 63,212,559.97 10.005 9.495 360 360 3
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150,000,000.00 9.949 9.439 324.9 2.8
==============
6 CPR 27 Arm 25,572,103.68 9.186 8.676 360 360 3
7 CPR 27 Arm 187,508,173.26 9.788 9.278 360 360 2
8 CPR 27 Arm 68,745,972.93 10.037 9.527 360 360 1
9 CPR 27 Arm 3,173,750.13 9.605 9.095 360 360 1
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285,000,000.00 9.792 9.282 360.0 1.8
==============
10 HEP 23 Level 18,551,500.17 10.187 9.677 180 360 3
11 HEP 23 Level 126,710.83 8.325 7.815 120 120 2
12 HEP 23 Level 8,231,179.51 9.299 8.789 180 180 2
13 HEP 23 Level 2,019,756.17 9.932 9.422 240 240 3
14 HEP 23 Level 21,070,853.32 10.005 9.495 360 360 3
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50,000,000.00 9.949 9.439 324.9 2.8
==============
15 CPR 27 Arm 8,524,034.56 9.186 8.676 360 360 3
16 CPR 27 Arm 62,502,724.42 9.788 9.278 360 360 2
17 CPR 27 Arm 22,915,324.31 10.037 9.527 360 360 1
18 CPR 27 Arm 1,057,916.71 9.605 9.095 360 360 1
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95,000,000.00 9.792 9.282 360.0 1.8
==============
<CAPTION>
Initial Reset
Remain. Gross Periodic Reset Months Change ARM
Loan Term Margin Cap Cap Life Cap Life Floor to Roll Freq Index
=========================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 177 0 0 0 0 0
2 118 0 0 0 0 0
3 178 0 0 0 0 0
4 237 0 0 0 0 0
5 357 0 0 0 0 0
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255.3
6 357 4.971 1.039 1.573 15.657 9.158 7 6 6ML
7 358 5.96 1.48 2.995 16.759 9.788 22 6 6ML
8 358 5.658 1.485 2.974 17.005 10.037 35 6 6ML
9 359 5.544 1.5 3 16.528 9.468 59 6 6ML
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357.9 5.794 1.442 2.862 16.717 9.788 24.2
10 177 0 0 0 0 0
11 118 0 0 0 0 0
12 178 0 0 0 0 0
13 237 0 0 0 0 0
14 357 0 0 0 0 0
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255.3
15 357 4.971 1.039 1.573 15.657 9.158 7 6 6ML
16 358 5.96 1.48 2.995 16.759 9.788 22 6 6ML
17 358 5.658 1.485 2.974 17.005 10.037 35 6 6ML
18 359 5.544 1.5 3 16.528 9.468 59 6 6ML
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357.9 5.794 1.442 2.862 16.717 9.788 24.2
</TABLE>
ASSUMPITONS
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Loans #1-9 consisting $435MM will be delivered on the settlement date.
Loans #10-18 consisting $145MM will be prefunded for 2 months.
There will be differences between the characteristics of the mortgage loans
actually included in the trust fund and the characteristics assumed in preparing
the Yield Tables, and these differences could be material.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. If YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR CHASE SECURITIES INC. SALES REPRESENTATIVE
IMMEDIATELY.
[CHASE LOGO]
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