SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________
FORM 10-K
FOR ANNUAL AND TRANSITION REPORTS
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED: DECEMBER 31, 1998
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 333-64131
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CHASE FUNDING, INC.
(Issuer in respect of Chase Funding Mortgage Loan Asset-Backed Certificates
Series 1998-2)
(the "Certificates")
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(Exact name of Registrant as specified in its charter)
New York 13-3436103
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(State or other jurisdiction of (I.R.S. Employer
incorporation) Identification No.
343 Thornall Street
Edison, New Jersey 10043
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Address of principal executive (Zip Code)
offices)
Registrant's telephone number, including area code: (732) 205-0600
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 12 months (or for such shorter
period that the registrant was required to file such reports) and (2) has
been subject to such filing requirements for the past 90 days. Yes: X No: ___
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. NOT APPLICABLE
State the aggregate market value of the voting stock held by non-
affiliates of the Registrant. The aggregate market value shall be computed by
reference to the price at which the stock was sold, or the average bid and
asked priced of such stock, as of a specified date within 60 days prior to the
date of filing. (See definition of affiliate in Rule 405). NOT APPLICABLE.
This Annual Report is filed pursuant to Sections 13 and 15(d) of the
Securities Exchange Act of 1934, as amended, in the manner described in a
"no-action" letter issued by the Office of Chief Counsel issued to Chase
Funding, Inc. (formerly known as Chemical Mortgage Securities, Inc.)
dated May 24, 1988 (the "Exemption Order"). Accordingly, responses to
certain items have been omitted from or modified in this Annual Report.
The Mortgage Loan Asset-Backed Certificates, Series 1998-2, (the
"Certificates"), represents the entire beneficial ownership interest in a
trust fund (the "Trust Fund") consisting, among other things, of a
segregated pool of subprime one- to four-family first-lien mortgage loans
(the "Mortgage Loans").
<PAGE>
PART I
Item 1. Business.
Omitted.
Item 2. Properties.
No information will be provided with respect to Item 2 as
the Certificates first Distribution Date occurred in
January 1999.
Item 3. Legal Proceedings.
The registrant knows of no material pending legal
proceedings with respect to the Trust Fund, involving the registrant, Trust
Fund, Citibank N.A. (the "Trustee") and Chase Manhattan Mortgage Corporation
(the "Seller and Master Servicer"), Advanta Mortgage Corp. USA (the
"Subservicer"), other than ordinary routine litigation incidental to duties
of the registrant, Trustee, Seller or the Subservicer under the pooling
and servicing agreement for Series 1998-2.
Item 4. Submission of Matters to a Vote of Security Holders.
No matter was submitted to a vote of Certificateholders
during the fiscal year covered by this report.
<PAGE>
PART II
Item 5. Market for Registrant's Common Equity and Related
Stockholder Matters.
(a) 1. There is no established public market for the
certificates.
2. As of December 31, 1998, there was 11 holders of
record of the Certificates of the Trust.
(b) To the knowledge of the registrant, there are no
reported high and low bid quotations for any of the
Certificates.
Item 6. Selected Financial Data.
Omitted.
Item 7. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
Omitted
Item 8. Financial Statements and Supplementary Data.
No information will be provided with respect to Item 8 as the
Certificates first Distribution Date occurred in January 1999.
Item 9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure.
None.
<PAGE>
PART III
Item 10. Directors and Executive Officers of the Registrant.
Omitted.
Item 11. Executive Compensation.
Omitted.
Item 12. Security Ownership of Certain Beneficial Owners and Management.
As of December 31, 1998, there were the following holders of record
with more than 5% of each class of Series 1998-2:
Title of Class Name and Address of Original Certificate % Class
Holders or Record Principal Balance
Class IA-1 Cede & Co. $65,000,000 100%
55 Water Street
New York, NY 10005
Class IA-2 Cede & Co. $19,000,000 100%
55 Water Street
New York, NY 10005
Class IA-3 Cede & Co. $36,000,000 100%
55 Water Street
New York, NY 10005
Class IA-4 Cede & Co. $18,000,000 100%
55 Water Street
New York, NY 10005
Class IA-5 Cede & Co. $18,925,000 100%
55 Water Street
New York, NY 10005
Class IA-6 Cede & Co. $17,400,000 100%
55 Water Street
New York, NY 10005
Class IM-1 Cede & Co. $8,075,000 100%
55 Water Street
New York, NY 10005
Class IM-2 Cede & Co. $4,750,000 100%
55 Water Street
New York, NY 10005
Class IB Cede & Co. $2,850,000 100%
55 Water Street
New York, NY 10005
Class IIA-1 Cede & Co. $288,750,000 100%
55 Water Street
New York, NY 10005
Class IIA-2 Cede & Co. $96,250,000 100%
55 Water Street
New York, NY 10005
Item 13. Certain Relationships and Related Transactions.
Omitted.
<PAGE>
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports of Form 8-K.
(a) None.
(b) Reports on Form 8-K during the last quarter of the
prior calendar year.
Reports on Form 8-K dated as of December 7, 1999,
December 8, 1999 and December 21, 1999 in response
to Item 5 (other events) of Form 8-K were filed
with respect to certain computational materials
and collateral information.
(c), (d) Omitted.
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.
CHASE FUNDING, INC. (Registrant)
By: /s/Luke S. Hayden
Name: Luke S. Hayden
Title: Chief Executive Officer
Date: March 30, 1999
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.
Date: March 30, 1999 By: /s/ Luke S. Hayden
Name: Luke S. Hayden
Title: (Chairman)
Chief Executive Officer
Date: March 30, 1999 By: /s/ Samuel H. Cooper
Name: Samuel H. Cooper
Title: (Director)
President
Date: March 30, 1999 By: /s/ Michael D. Katz
Name: Michael D. Katz
Title: Director
Date: March 30, 1999 By: /s/ Douglas A. Potolsky
Name: Douglas A. Potolsky
Title: Director
Date: March 30,1999 By: /s/ Matthew T. Whalen
Name: Matthew T. Whalen
Title: Director
Date: March 30, 1999 By: /s/ Stephen Fortunato
Name: Stephen Fortunato
Title: Treasurer
(Chief Financial Officer)
<PAGE>
SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO
SECTION 15(d) OF THE ACT BY REGISTRANTS WHICH HAVE NOT REGISTERED SECURITIES
PURSUANT TO SECTION 12 OF THE ACT.
No annual report, proxy statement, form of proxy or other proxy soliciting
material has been sent to Certificateholders during the period covered by
this Annual Report on Form 10-K and the registrant does not intend to furnish
such materials to Certificateholders subsequent to the filing of this report.
