<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
ANNUAL REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the fiscal year ended December 31, 1996
Commission file number: 33-96500
Access Financial Manufactured Housing Contract Trust 1996-1,
-------------------------------------------------------------
by Cargill Financial Services Corporation, as Sponsor
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 41-1492786
-------- ----------
(State or other jurisdiction (IRS employer
of incorporation) identification number)
Attention: Phillip M. Fantle, Esq.,
- -----------------------------------
6000 Clearwater Drive, Minnetonka, Minnesota 55343-9497
- --------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (612)984-3444
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 NO X
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. [ X ]
The Registrant has no voting stock or class of common stock held by a
non-affiliate as of the date of this report.
<PAGE>
PART I
The Manufactured Housing Contract Senior/Subordinate Pass-Through Certificates,
Series 1996-1 (the "Certificates") represent interests in a pool of actuarial
manufactured housing installments sales contracts and installment loan
agreements (the "Contracts") and certain related property held by the Access
Financial Manufactured Housing Contract Trust 1996-1 (the "Trust"). Cargill
Financial Services Corporation (the "Sponsor") caused the Trust to acquire the
Contracts from Access Financial Receivables Corp. (the "Seller").
The Registrant has prepared this Form 10-K in reliance upon various no-action
letters issued by the Securities and Exchange Commission (the "Commission") to
other trusts which are substantially similar to the Trust. Items designated
herein as "not applicable" have been omitted as a result of this reliance.
ITEM 1 BUSINESS
Not applicable
ITEM 2 PROPERTIES
The Trust's sole asset is a pool of actuarial manufactured housing installments
sales contracts and installment loan agreements originated or acquired by Access
Financial Lending Corp. (formerly Access Financial Corp.).
ITEM 3 LEGAL PROCEEDINGS
Cargill Financial Services Corporation is not aware of any material pending
litigation involving the Registrant, the Trustee, the Seller or the Servicer
with respect to the Certificates or the Registrant's Property.
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No vote or consent of holders of any class of certificate was solicited for any
purpose during the year ended December 31, 1996.
PART II
ITEM 5 MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDERS
MATTERS
Each Class of the Certificates representing investors' interests in the Trust is
represented by a single Certificate of such Class registered in the name of Cede
& Co. ("Cede"), the nominee of The Depository Trust Company ("DTC"). To the
best knowledge of the Registrant, there is no established public trading market
for the Certificates.
ITEM 6 SELECTED FINANCIAL DATA
Not applicable.
ITEM 7 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Not applicable.
ITEM 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Not applicable.
ITEM 9 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
<PAGE>
PART III
ITEM 10 DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Not applicable.
ITEM 11 EXECUTIVE COMPENSATION
Not applicable.
ITEM 12 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The Certificates representing the investors' interests in the Trust are
represented by a single Certificate registered in the name of Cede, the nominee
of DTC, and an investor holding an interest in the Trust is not entitled to
receive a Certificate representing such interest except in certain limited
circumstances. Accordingly, Cede is the sole holder of record of Certificates
which it holds on behalf of brokers, dealers, banks and other direct
participants in the DTC system. Such direct participants may hold Certificates
for their own accounts or for the accounts of their customers. The name and
address of Cede is:
Cede & Co.
c/o The Depository Trust Company
Seven Hanover Square
New York, New York 10004
The Seller is not aware of any Schedule 13D or 13G filed with Commission in
respect of the Certificates.
ITEM 13 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Not applicable.
PART IV
ITEM 14 EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) 1. Financial Statements
Not applicable.
2. Financial Statement Schedules
Not applicable.
3. See Exhibit 99 below
(b) The following reports on Form 8-K were filed for fiscal 1996.
Date of Report Item Covered
May 27, 1998 Monthly Reports to Certificate Holders
(c) Exhibit 99
99.1 Summary of Monthly Reports (June 1996 through December
1996)
99.2 Uniform Single Attestation Program for Mortgage Brokers
(d) Not applicable.
<PAGE>
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.
Dated: May 27, 1998
CARGILL FINANCIAL SERVICES
CORPORATION, as Sponsor
By: /s/ Robert D. Beach
----------------------------
ROBERT D. BEACH
Vice President
<PAGE>
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION PAGE
- ------ --------------------------------------------- ----
99.1 Summary of Monthly Reports (June 1996 through December 1996)
99.2 Uniform Single Attestation Program for Mortgage Brokers
<PAGE>
MANUFACTURED HOUSING CONTRACT SENIOR/SUBORDINATE
PASS-THROUGH CERTIFICATES, SERIES 1996-1
<TABLE>
<CAPTION>
Distribution Date: Summary May 1, 1996 through
December 31, 1996
<S> <C> <C>
Amount reimbursable to the Servicer 44,012.65
---------------------
SENIOR CERTIFICATES
1 (a) Amount Available (including Monthly
Servicing Fee) 16,488,854.46
---------------------
(b) Class A-6 Interest Deficiency Amount
(if any) and Class B-1 Interest Deficiency
Amount (if any) withdrawn for prior
Remittance Date 0.00
---------------------
(c) Amount Available after giving effect to
withdrawal of Class A-6 Interest Deficiency
Amount and Class B-1 Interest Deficiency
Amount for prior Remittance Date 16,488,854.46
---------------------
Interest
2 Aggregate Interest (total): 5,374,135.78
---------------------
(a) Class A-1 Remittance Rate 6.4
---------------------
(b) Class A-1 Interest 1,287,815.62
---------------------
(c) Class A-2 Remittance Rate 6.75
---------------------
(d) Class A-2 Interest 1,186,200.00
---------------------
(e) Class A-3 Remittance Rate 6.975
---------------------
(f) Class A-3 Interest 1,109,583.04
---------------------
(g) Class A-4 Remittance Rate 7.30
---------------------
(h) Class A-4 Interest 589,596.64
---------------------
(i) Class A-5 Remittance Rate 7.575
---------------------
(j) Class A-5 Interest 1,200,940.48
---------------------
3 Amount applied to:
(a) Unpaid Senior Interest Shortfall 0.00
---------------------
4 Remaining:
(a) Unpaid Senior Interest Shortfall 0.00
---------------------
Page 1
<PAGE>
Principal Count
Prior Period Ending Scheduled Balance 5,660 161,980,708.01
---------------------------
5 Formula Principal Distribution Amount:
(a) Scheduled principal 1,976,500.68
---------------------
(b) Principal Prepayments (PIF & Curtailments) (102) 2,947,619.87
---------------------------
(c) Liquidated Contracts (22) 450,154.09
---------------------------
(d) Repurchases (Principal) (6) 215,917.80
---------------------------
(e) Accelerated Principal 2,428,713.23
---------------------
8,018,905.67
---------------------
6 Pool Count/Scheduled Principal Balance 5,530 156,390,515.57
---------------------------
7 Unpaid Senior Principal Shortfall (if any)
following prior Remittance Date 0.00
----------------------
8 Senior Percentage for such Remittance Date
(Until Class B Cross-Over Date, and on each
Remittance Date thereafter unless each
Class B Principal Distribution Test is
satisfied, equals Senior Principal Balance
divided by Pool Scheduled Principal Balance) 100.00
----------------------
9 Senior Percentage for the following
Remittance Date 100.00
----------------------
10 Senior principal distribution:
(a) Class A-1 8,018,905.67
----------------------
(b) Class A-2 0.00
----------------------
(c) Class A-3 0.00
----------------------
(d) Class A-4 0.00
----------------------
(e) Class A-5 0.00
----------------------
11 (a) Class A-1 Ending Principal Balance 25,525,094.33
----------------------
(b) Class A-2 Ending Principal Balance 26,360,000.00
----------------------
(c) Class A-3 Ending Principal Balance 23,862,000.00
----------------------
(d) Class A-4 Ending Principal Balance 12,115,000.00
----------------------
(e) Class A-5 Ending Principal Balance 23,781,000.00
----------------------
12 Unpaid Senior Principal Shortfall (if any)
following current Remittance Date 0.00
----------------------
Page 2
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CLASS A-6 CERTIFICATES
13 Class A-6 Amount Available 3,095,813.01
----------------------
Interest
14 Aggregate Interest
(a) Class A-6 Remittance Rate ( %
unless Weighted Average Contract
Rate is below %) 7.975
----------------------
(b) Class A-6 Interest 678,619.36
----------------------
15 Amount applied to Unpaid Class A-6
Interest Shortfall 0.00
----------------------
16 Amount applied to Class A-6 Interest
Deficiency Amount 0.00
----------------------
17 Remaining unpaid Class A-6 Interest
Deficiency Amount 0.00
----------------------
18 Remaining Unpaid Class A-6 Interest
Shortfall 0.00
----------------------
Principal
19 Formula Principal Distribution Amount (total): 0.00
----------------------
(a) Scheduled principal 0.00
----------------------
(b) Principal Prepayments 0.00
----------------------
(c) Liquidated Contracts 0.00
----------------------
(d) Repurchases 0.00
----------------------
(e) Accelerated Principal 0.00
----------------------
20 Pool Scheduled Principal Balance 156,390,515.57
----------------------
21 Class A-6 Percentage after prior
Remittance Date 0.00
----------------------
22 Class A-6 Percentage for such Remittance
Date 0.00
----------------------
23 Class A-6 Percentage for the following
Remittance Date 0.00
----------------------
24 Class A-6 principal distribution:
(a) Class A-6 (current) 0.00
----------------------
(b) Unpaid Class A-6 Principal Shortfall
(if any) following prior Remittance Date 0.00
----------------------
25 Unpaid Class A-6 Principal Shortfall (if any)
following current Remittance Date 0.00
----------------------
Class A-6 Principal Balance 12,764,000.00
----------------------
Class B Principal Distribution Tests (tests must be
satisfied on or after the Remittance Date occurring
in June 1999) n/a
----------------------
Page 3
<PAGE>
26 Average Sixty-Day Delinquency Ratio Test
(a) Sixty-Day Delinquency Ratio for
current Remittance Date 7.57%
----------------------
(b) Average Sixty-Day Delinquency Ratio
(arithmetic average of ratios for this
month and two preceding months; may not
exceed 5 %) re: Class B
Prin. Distri Test 6.38%
----------------------
27 Average Thirty-Day Delinquency Ratio Test
(a) Thirty-Day Delinquency Ratio for
current Remittance Date 14.86%
----------------------
(b) Average Thirty-Day Delinquency Ratio
(arithmetic average of ratios for this
month and two preceding months; may not
exceed 7* %) re: Class B
Prin. Distri. Test 13.01%
----------------------
28 Cumulative Realized Losses Test
(a) Cumulative Realized Losses for current
Remittance Date (as a percentage of
Cut-off Date Pool Principal Balance;
may not exceed 7% from June 1, 2000 to
May 31, 2001, 8% from June 1, 2001 to
May 31, 2002, 9% from June 1, 2002
and thereafter) 0.13%
----------------------
210,259.64
----------------------
29 Current Realized Losses Test
(a) Current Realized Losses for current
Remittance Date 210,259.64
----------------------
(b) Current Realized Loss Ratio (total
Realized Losses during the 12
immediately preceding Collection Period,
divided by the arithmetic average
of Pool Scheduled Balances as of the
preceding Collection Period and the Pool
Scheduled Balance as of the last day of
the immediately preceding Collection
Period; may not exceed 2.75%) 0.13%
----------------------
30 Class B Principal Balance Test
(a) Class B Principal Balance will be
considered satisfied for any Remittance
Date, that the sum of the Class B
Principal Balance and the
Overcollateralization Amount as of such
Remittance Date, before giving effect to
distributions on such Remittance Date,
is greater than or equal to $3,239,614. 31,983,421.24
----------------------
Page 4
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CLASS B-1 CERTIFICATES
31 Amount Available less the Senior Distribution
Amount and Class A-6 Distribution Amount 2,417,193.65
----------------------
Interest
32 Class B-1 Remittance Rate 8.040
----------------------
33 Class B-1 Interest 940,733.60
----------------------
34 Current Interest 940,733.60
----------------------
35 Amount applied to Unpaid Class B-1
Interest Shortfall 0.00
----------------------
36 Amount applied to Class B-1 Interest
Deficiency Amount 0.00
----------------------
37 Remaining unpaid Class B-1 Interest
Deficiency Amount 0.00
----------------------
38 Remaining Unpaid Class B-1 Interest Shortfall 0.00
----------------------
Principal
39 Unpaid Class B-1 Principal Shortfall (if any)
following prior Remittance Date 0.00
----------------------
40 (a) Class B Percentage for such Remittance
Date (until Class B Cross-over Date, and
on each Remittance Date thereafter unless
each Class B Principal Distribution Test
is satisfied, equals zero. Thereafter,
if each Class B Principal Distribution
Test is satisfied, equals 100% minus
Senior Percentage) 0.00
----------------------
(b) Class B Percentage for the following
Remittance Date 0.00
----------------------
41 Current Principal (Class B Percentage of
Formula Principal Distribution Amount) 0.00
----------------------
42 (a) Class B-1 Principal Shortfall 0.00
----------------------
(b) Unpaid Class B-1 Principal Shortfall 0.00
----------------------
43 Class B Principal Balance 27,124,000.00
----------------------
44 Class B-1 Principal Balance 17,551,000.00
----------------------
Page 5
<PAGE>
CLASS B-2 CERTIFICATES
45 Remaining Amount Available 1,476,460.05
----------------------
Interest
46 Class B-2 Remittance Rate ( %, unless
Weighted Average Contract Rate is less
than %) 10.125
----------------------
47 Class B-2 Interest 646,177.52
----------------------
48 Current Interest 646,177.52
----------------------
49 Amount applied to Unpaid Class B-2 Interest
Shortfall 0.00
----------------------
50 Remaining Unpaid Class B-2 Interest Shortfall 0.00
----------------------
Principal
51 Unpaid Class B-2 Principal Shortfall (if any)
following prior Remittance Date 0.00
----------------------
52 Class B-2 Principal Liquidation Loss Amount 0.00
----------------------
53 Current principal (zero until Class B-1 paid
down; thereafter, Class B Percentage of
Formula Principal Distribution Amount) 0.00
----------------------
54 Class B-2 Principal Balance 9,573,000.00
----------------------
SENIOR, CLASS A-6, CLASS B-1 AND CLASS B-2 CERTIFICATES
Aggregate "Actual" Balances of delinquent Contracts
as of month-end.
56 30-59 days 11,400,063.49
----------------------
57 60 days or more 11,837,898.87
----------------------
58 Manufactured Homes repossessed 114
----------------------
59 Manufactured Homes repossessed but
remaining in inventory 83
----------------------
60 Weighted Average Contract Rate of all
outstanding Contracts (Note: Does not include 9.4440236818
servicing fee.) ----------------------
Page 6
<PAGE>
RESIDUAL CERTIFICATES
61 (a) Monthly Servicing Fee (deducted from
Certificate Account balance to arrive at
Amount Available if the Company is not
the Servicer; deducted from funds remaining
after payment of Senior Distribution Amount,
Class A-6 Distribution Amount, Class B-1
Distribution Amount, and Class B-2
Distribution Amount, if the Company is
the Servicer) 355,187.71
----------------------
(b) Monthly interest on certificate account: 12,099.89
----------------------
CLASS A-6, CLASS B-1, AND CLASS B-2 CERTIFICATES
62 Class A-4 Interest Deficiency on such
Remittance Date 0.00
----------------------
63 Class B-1 Interest Deficiency on such
Remittance Date 0.00
----------------------
64 Class B-2 Interest Deficiency on such
Remittance Date 0.00
----------------------
REPOSSESSED CONTRACTS
65 Repossessed Contracts 2,795,501.09
----------------------
66 Repossessed Contracts Remaining in Inventory 2,044,295.13
----------------------
ACCELERATED PRINCIPAL CALCULATION
67 Remaining Amount Available 462,994.95
----------------------
68 Accelerated Principal 2,428,713.23
----------------------
RESIDUAL CERTIFICATES
69 Class "C" Distribution Amount (The lessor of
the amount available or the excess, if , any,
1/12 Weighted Net Contract Rate at beginning
x pool scheduled balance at beginning MINUS
the Certificate Interest [A-1 to B-2]
Distribution Amount for date.) 462,994.95
----------------------
70 Release Amount (if B-2 is zero) 0.00
----------------------
71 Reimburse Residual Certificate Holder per 0.00
Section 10.06 (REMIC Tax Matters) ----------------------
72 Remaining to Residual Holder 0.00
----------------------
</TABLE>
Please contact the Bondholder Relations Department of the Bank of New York
at (212) 815 - 2793 with any questions regarding this Statement on your
Distribution.
Page 7
<PAGE>
[LETTERHEAD]
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Access Financial Lending Corp.:
We have examined management's assertion about Access Financial Lending Corp. and
Subsidiaries (the Company) compliance with the minimum servicing standards
identified in the Mortgage Bankers Association of America's UNIFORM SINGLE
ATTESTATION PROGRAM FOR MORTGAGE BANKERS as of and for the year ended May 31,
1997 included in the accompanying management assertion. Management is
responsible for the Company's compliance with those minimum servicing standards.
Our responsibility is to express an opinion on management's assertion about the
Company's compliance based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Company's compliance with the
minimum servicing standards and performing such other procedures as we
considered necessary in the circumstances. We believe that our examination
provides a reasonable basis for our opinion. Our examination does not provide a
legal determination on the Company's compliance with the minimum servicing
standards.
In our opinion, management's assertion that the Company complied with the
aforementioned minimum servicing standards as of and for the year ended May 31,
1997 is fairly stated, in all material respects.
/s/ KPMG Peat Marwick LLP
July 17, 1997
<PAGE>
[LETTERHEAD]
August 15, 1997
KPMG Peat Marwick LLP
4200 Norwest Center
90 South Seventh Street
Minneapolis, MN 55402-3900
Ladies and Gentlemen:
As of and for the year ended May 31, 1997, Access Financial Lending Corp. and
subsidiaries has complied in all material respects with the minimum servicing
standards set forth in the Mortgage Bankers Association of America's UNIFORM
SINGLE ATTESTATION PROGRAM FOR MORTGAGE BANKERS. As of and for this same
period, Access Financial Lending Corp. and subsidiaries had in effect an errors
and omissions policy in the amount of $1,000,000.
In addition, Access Financial Lending Corp. and subsidiaries is provided
coverage for fidelity bond insurance by Cargill, Inc. Cargill Incorporated has
a policy with indemnity coverage up to $30 million for a single loss with a
deductible of $2.5 million.
Very truly yours,
Access Financial Lending Corp
/s/ Dan J. Cheever
- --------------------------------------------------
Dan J. Cheever
Chief Executive Officer and
Chief Financial Officer
/s/ Leslie Z. Foster
- --------------------------------------------------
Leslie Z. Foster
President
