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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): December 15, 1996
ONYX ACCEPTANCE GRANTOR TRUST 1996-3
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(Issuer with respect to Certificates)
ONYX ACCEPTANCE FINANCIAL CORPORATION
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(Exact Name of Registrant as Specified in Its Charter)
Commission File Number
333-10461 (I.R.S. Employer
Identification No.)
33-0639768
State or other jurisdiction of
incorporation or organization
Delaware
Onyx Acceptance Financial Corporation
8001 Irvine Center Drive, Suite 500
Irvine, Ca. 92618
714 753-1191
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ITEM 5. OTHER EVENTS
On behalf of the Onyx Acceptance Grantor Trust 1996-3, (the "Trust"), a
trust created pursuant to the Pooling and Servicing Agreement dated as of
September 1, 1996 with Onyx Acceptance Financial Corporation as registrant and
seller and Onyx Acceptance Corporation as servicer, and Bankers Trust Company of
New York, as trustee, the registrant has caused to be filed with the Commission,
the December 1996 monthly Distribution Date Statement with respect to the Trust.
This Distribution Date Statement is filed pursuant to and in accordance with a
no action request filed on August 21, 1995 with the Commission by Onyx
Acceptance Financial Corporation, originator of the Onyx Acceptance Grantor
Trust 1996-3 and Onyx Acceptance Corporation as servicer and the affirmative
response thereto by the Securities and Exchange Commission dated September 22,
1995. The filing of the monthly Distribution Date Statement will occur
subsequent to each monthly distribution to the Trust's Certificateholders until
and unless exempted under provisions of the Securities and Exchange Act.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements
Unaudited Financial Statements of Capital Markets Assurance Corporation
for the period ended September 30, 1996.
(c) Exhibits
Exhibit No.
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19 Monthly Distribution Date Statement of the Onyx Acceptance Grantor
Trust 1996-3 for the month of December 1996.
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CAPITAL MARKETS ASSURANCE CORPORATION
FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(UNAUDITED)
F-1
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CAPITAL MARKETS ASSURANCE CORPORATION
BALANCE SHEETS
(DOLLARS IN THOUSANDS)
ASSETS
------
<TABLE>
<CAPTION>
September 30,1996 December 31,1995
(Unaudited)
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<S> <C> <C>
INVESTMENTS:
Bonds at fair value (amortized cost $283,996 at September
30, 1996 and $210,651 at December 31, 1995) $ 284,595 215,706
Short-term investments (at amortized cost which
approximates fair value) 23,081 68,646
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Total investments 307,676 284,352
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Cash 514 344
Accrued investment income 3,604 3,136
Deferred acquisition costs 42,350 35,162
Premiums receivable 4,068 3,540
Prepaid reinsurance 17,801 13,171
Other assets 4,194 3,428
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TOTAL ASSETS $ 380,207 343,133
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LIABILITIES AND STOCKHOLDER'S EQUITY
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LIABILITIES:
Unearned premiums $ 61,410 45,767
Reserve for losses and loss adjustment expenses 9,602 6,548
Ceded reinsurance 2,455 2,469
Accounts payable and other accrued expenses 12,446 10,844
Current income taxes - 136
Deferred income taxes 13,608 11,303
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Total liabilities 99,521 77,067
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STOCKHOLDER'S EQUITY:
Common stock 15,000 15,000
Additional paid-in capital 208,475 205,808
Unrealized appreciation on investments, net of tax 389 3,286
Retained earnings 56,822 41,972
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Total stockholder's equity 280,686 266,066
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TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 380,207 343,133
=======================================================================================================
</TABLE>
See accompanying notes to financial statements.
F-2
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CAPITAL MARKETS ASSURANCE CORPORATION
STATEMENTS OF INCOME
(UNAUDITED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
1996 1995 1996 1995
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<S> <C> <C> <C> <C>
REVENUES:
Direct premiums written $ 17,206 12,204 49,983 45,042
Assumed premiums written 8 102 1,032 925
Ceded premiums written (4,129) (6,188) (11,142) (11,834)
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Net premiums written 13,085 6,118 39,873 34,133
(Increase) decrease in unearned premiums (3,042) 1,193 (11,014) (12,418)
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Net premiums earned 10,043 7,311 28,859 21,715
Net investment income 4,307 3,013 12,296 8,606
Net realized capital gains (loss) (57) 364 111 449
Other income 25 14 104 38
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Total revenues 14,318 10,702 41,370 30,808
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EXPENSES:
Losses and loss adjustment expenses 1,248 821 3,432 2,279
Underwriting and operating expenses 3,780 2,563 11,142 9,939
Policy acquisition costs 2,126 2,022 6,249 5,481
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Total expenses 7,154 5,406 20,823 17,699
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Income before income taxes 7,164 5,296 20,547 13,109
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INCOME TAXES:
Current federal income tax 1,027 231 3,008 895
Deferred federal income tax 718 1,280 2,689 2,256
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Total income taxes 1,745 1,511 5,697 3,151
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NET INCOME $ 5,419 3,785 14,850 9,958
====================================================================================================
</TABLE>
See accompanying notes to financial statements.
F-3
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CAPITAL MARKETS ASSURANCE CORPORATION
STATEMENT OF STOCKHOLDER'S EQUITY
(UNAUDITED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Nine Months Ended
September 30, 1996
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<S> <C>
COMMON STOCK:
Balance at beginning of period $ 15,000
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Balance at end of period 15,000
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ADDITIONAL PAID-IN CAPITAL:
Balance at beginning of period 205,808
Capital contribution 2,667
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Balance at end of period 208,475
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UNREALIZED (DEPRECIATION) APPRECIATION
ON INVESTMENTS, NET OF TAX:
Balance at beginning of period 3,286
Unrealized depreciation on investments (2,897)
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Balance at end of period 389
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RETAINED EARNINGS:
Balance at beginning of period 41,972
Net income 14,850
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Balance at end of period 56,822
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TOTAL STOCKHOLDER'S EQUITY $ 280,686
========================================================================
</TABLE>
See accompanying notes to financial statements.
F-4
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CAPITAL MARKETS ASSURANCE CORPORATION
STATEMENT OF CASH FLOWS
(UNAUDITED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Nine Months Ended Nine Months Ended
September 30, 1996 September 30, 1995
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 14,850 9,958
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ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
Reserve for losses and loss adjustment expenses 3,054 1,474
Unearned premiums 15,643 17,982
Deferred acquisition costs (7,188) (6,981)
Premiums receivable (528) 81
Accrued investment income (468) 63
Income taxes payable 2,341 2,447
Net realized capital gains (111) (449)
Accounts payable and other accrued expenses 5,445 3,456
Prepaid reinsurance (4,630) (5,564)
Other, net (381) 2,253
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Total adjustments 13,177 14,762
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NET CASH PROVIDED BY OPERATING ACTIVITIES 28,027 24,720
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CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments (154,308) (109,235)
Proceeds from sale of investments 35,388 38,577
Proceeds from maturities of investments 91,063 37,361
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NET CASH USED IN INVESTING ACTIVITIES (27,857) (33,297)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Paid-in capital - 9,000
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NET CASH PROVIDED BY FINANCING ACTIVITIES - 9,000
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Net increase in cash 170 423
Cash balance at beginning of period 344 85
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CASH BALANCE AT END OF PERIOD $ 514 508
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SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Income taxes paid $ 3,225 650
Tax and loss bonds purchased $ 131 54
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</TABLE>
See accompanying notes to financial statements.
F-5
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CAPITAL MARKETS ASSURANCE CORPORATION
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
1. BACKGROUND
Capital Markets Assurance Corporation ("CapMAC") is a New
York-domiciled monoline stock insurance company which engages only in
the business of financial guaranty and surety insurance. CapMAC is a
wholly-owned subsidiary of CapMAC Holdings Inc. ("Holdings"). CapMAC is
licensed in all 50 states in addition to the District of Columbia, the
Commonwealth of Puerto Rico and the territory of Guam. CapMAC insures
structured asset-backed, corporate, municipal and other financial
obligations in the U.S. and international capital markets. CapMAC also
provides financial guaranty reinsurance for structured asset-backed,
corporate, municipal and other financial obligations written by other
major insurance companies.
CapMAC's claims-paying ability is rated triple-A by Moody's Investors
Service, Inc., Standard & Poor's Ratings Services, Duff & Phelps Credit
Rating Co., and Nippon Investors Service, Inc., a Japanese rating
agency. Such ratings reflect only the views of the respective rating
agencies, are not recommendations to buy, sell or hold securities and
are subject to revision or withdrawal at any time by such rating
agencies.
2. BASIS OF PRESENTATION
CapMAC's unaudited interim financial statements have been prepared on
the basis of generally accepted accounting principles and, in the
opinion of management, reflect all adjustments necessary for a fair
presentation of the CapMAC's financial condition, results of operations
and cash flows for the periods presented. The results of operations for
the nine months ended September 30, 1996 may not be indicative of the
results that may be expected for the full year ending December 31,
1996. These financial statements and notes should be read in
conjunction with the financial statements and notes included in the
audited financial statements of CapMAC as of December 31, 1995 and
1994, and for each of the years in the three-year period ended December
31, 1995.
3. RECLASSIFICATIONS
Certain prior period balances have been reclassified to conform to the
current period presentation.
F-6
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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.
Onyx Acceptance Financial Corporation
By: REGAN E. KELLY
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Regan E. Kelly Executive Vice President
Date: December 20, 1996
By: DON P. DUFFY
-----------------------------------------------------
Don P. Duffy Executive Vice President
Date: December 20, 1996
<PAGE> 1
EXHIBIT 19
ONYX ACCEPTANCE GRANTOR TRUST 1996-3 Distribution Date Statement
6.45% AUTO LOAN PASS-THROUGH CERTIFICATES 18-Dec-96
Collection Period Beginning on: 11/01/96
Collection Period Ending on: 11/30/96
Distribution Date: 12/16/96
<TABLE>
<S> <C> <C>
1 Original Pool Balance $120,000,786.00
2 Collection Period Beginning Pool Balance $112,268,412.69
3 Collection Period Beginning Pool Balance Factor 0.935564
COMPUTATION OF COLLECTION ACCOUNT AMOUNTS AVAILABLE FOR DISTRIBUTION
4 Total Collections from Obligors 01-Nov-96 to 30-Nov-96 $4,171,969.40
5 Full Prepayments through first 5 business days of current month 96,541.00
6 Full Prepayments included in Prior Collection Period 181,845.00
7 Partial Prepayments deposited to PayAhead Acct 0.00
8 Amounts Withdrawn from PayAhead Acct & Deposited to Collection Acct 27,552.03
9 Yield Supplement Amount to be Deposited to Collection Account 0.00
10 Net Liquidation Proceeds on Defaulted Contracts 01-Nov-96 to 30-Nov-96 68,906.86
11 Net Liquidation Proceeds first 5 business days of current month 0.00
12 Net Liquidation Proceeds included in Prior Collection Period 0.00
13 Net Insurance Proceeds 0.00
14 Net Insurance Proceeds first 5 business days of current month 0.00
15 Net Insurance Proceeds included in Prior Collection Period 0.00
16 Aggregate Amount of Repurchased Contracts 0.00
17 Reinvestment Earnings on Funds in Collection Acct (ccma 7663) 01-Nov-96 to 30-Nov-96 12,048.19
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18 COLLECTION ACCOUNT AMOUNTS AVAILABLE (4+5-6-7+8+9+10+11-12+13+14-15+16+17) $4,195,172.48
COMPUTATION OF CERTIFICATE ENDING POOL BALANCE
19 Collection Period Beginning Pool Balance $112,268,412.69
20 Scheduled Principal Decline (recomputed actuarial) Precompute contracts only 1,273,185.00
20aPrincipal Collected: Payments only - Simple Interest contracts 347,110.63
20bPrincipal Collected: Payoffs only - Simple Interest contracts 356,863.39
21 Full Prepayments: Precompute only 08-Nov-96 to 30-Nov-96 868,943.00
22 Full Prepayments through first 5 business days of current month 96,541.00
23 Defaulted Contracts (Liquidated Proceeds received) 08-Nov-96 to 30-Nov-96 121,459.79
23aDefaulted Contracts (Liquidated Proceeds received) thru 1st 5 busines
days of current month 0.00
24 Defaulted Contracts (4 or more periods. Liquidated Proceeds not received) 0.00
24aDefaulted Contracts (4 or more periods. Liquidated Proceeds not received)
thru 1st 5 bus. days of current mo. 0.00
25 Repurchased Contracts 0.00
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26 CERTIFICATE ENDING POOL BALANCE (19-20-20A-20B-21-22-23-23A-24-24A-25) $109,204,309.88
CERTIFICATE ENDING BALANCE POOL FACTOR 0.910030
27 PRINCIPAL DISTRIBUTION AMOUNT (19-26) $3,064,102.81
DISTRIBUTIONS FROM COLLECTION ACCOUNT
28 Principal Distribution Amount $3,064,102.81
29 Interest Distribution Amount (6.45%/12) 603,442.72
30 Servicing Fee Payable to Servicer (1.0%/12) 93,557.01
31 Surety Fee Payable to Surety (0.15%/360 * Days in Collection Period) less prior
month credit for overpayment 9,056.94
31aReinsurance Fee Payable to Surety (2.00%/360 * Days in period * lesser
of $2,400,015.72 or 41-43) 4,000.03
32 Reinvestment Earnings Payable to Finco 12,048.19
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33 TOTAL DISTRIBUTIONS FROM COLLECTION ACCOUNT (28+29+30+31+31A+32) $3,786,207.70
34 TOTAL EXCESS SPREAD AVAILABLE FOR DEPOSIT TO SPREAD ACCOUNT (18-33) $408,964.78
SPREAD ACCOUNT RECONCILIATION
35 Initial Deposit $100.00
36 Deposits to Spread Account Prior Collection Periods $742,132.47
37 Deposit to Spread Account this Collection Period (34) $408,964.78
38 Reinvestment Earnings on Funds in Spread Account 01-Nov-96 to 30-Nov-96 $1,725.88
39 Draws from Spread Account Prior Periods $0.00
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40 SPREAD ACCOUNT BALANCE (35+36+37+38-39) $1,152,923.13
41 Required Spread Account Balance (Max of 6% x (26) or 2% x (1) ) $6,552,258.59
42 Draws from Spread Account this Collection Period ((40 - 41) if positive,
0 otherwise) $0.00
43 Spread Account Balance net of Draws this Collection Period (40 - 42) $1,152,923.13
DELINQUENCY STATISTICS
44 Number of Accts Delinquent 30 - 59 Days 90
45 Number of Accts Delinquent 60 - 89 Days 43
45aNumber of Accts Deliquent 90 Days and Over 27
---------------
46 Total Number of Delinquent Accounts 30 Days and Over 160
</TABLE>
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<TABLE>
<S> <C> <C>
47 Aggregate Net Outstanding Balance of Delinquent Loans 30-59 days $1,110,920
48 Aggregate Net Outstanding Balance of Delinquent Loans 60 - 89 days $567,557
48aAggregate Net Outstanding Balance of Delinquent Loans 90 days and over $345,900
---------------
49 Total Aggregate Net Outstanding Balance of Delinquent Loans (44 + 45) $2,024,378
50 Policy Claim Amount $0.00
REPOSSESSION STATISTICS
51 Number of Accounts in Repo Inventory @ Beginning of Collection Period 30
52 Number of Accounts Repossessed During Collection Period 21
53 Number of Repo'd Accounts Sold or Reinstated During Collection Period 13
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54 Number of Accounts in Repo Inventory @ End of Collection Period 38
55 Aggregate Net Outstanding Balance of Accounts in Repo Inventory @ Beginning
of Collection Period $453,509.52
56 Aggregate Net Outstanding Balance of Accounts Repossessed During Month 242,356.14
57 Aggregate Net Outstanding Balance of Repo Accounts Sold or Reinstated During Month 172,014.03
---------------
58 Aggregate Net Outstanding Balance of Accounts in Repo Inventory @ End of Collection Period $523,851.63
YIELD SUPPLEMENT ACCOUNT BALANCE
59 Initial Deposit $0.00
60 Draws from Yield Supplement to Collection Account $0.00
---------------
61 Yield Supplement Account Balance $0.00
ACCOUNTS OUTSTANDING
62 Original Accounts Outstanding 10,165
63 Remaining Number of Accounts Outstanding @ End of Collection Period 9,618
NET YIELD
64 Interest Collected on Contracts 1,353,419.41
65 Interest Collected on Contracts - Prior Collection Period 1,680,449.82
66 Interest Collected on Contracts - Two Collection Periods Ago 876,882.07
67 Liquidated Contract Balances (less Liquidation proceeds) 52,552.93
68 Liquidated Contract Balances (less Liquidation proceeds) - Prior Collection Period 24,712.21
69 Liquidated Contract Balances (less Liquidation proceeds) - Two Collection Periods Ago 3,171.80
70 Interest Paid to Certificate Holders 603,442.72
71 Interest Paid to Certificate Holders - Prior Collection Period 621,273.09
72 Interest Paid to Certificate Holders - Two Collection Periods Ago 602,003.94
73 Servicing Fees Paid to Servicer $93,557.01
74 Servicing Fees Paid to Servicer - Prior Collection Period $96,321.41
75 Servicing Fees Paid to Servicer - Two Collection Periods Ago $100,000.66
76 Certificate Ending Pool Balance $109,204,309.88
77 Certificate Ending Pool Balance - Prior Collection Period $112,268,412.69
78 Certificate Ending Pool Balance - Two Collection Periods Ago $115,585,691.71
79 NET YIELD 6.10%
A.P.R. OF TRUST CONTRACTS
80 Dollar Weighted A.P.R. of Contracts @ Cutoff Date 14.84%
81 Dollar Weighted A.P.R. of Remaining Contracts in Trust as of End of
Collection Period 14.58%
CREDIT LOSSES
82 Gross Credit Losses during Collection Period (23+23a+24+24a) $121,459.79
83 Recoveries during Collection Period (10+11-12) 68,906.86
---------------
84 NET CREDIT LOSSES DURING COLLECTION PERIOD (82-83) $52,552.93
85 CUMULATIVE NET CREDIT LOSSES $80,436.94
86 CUMULATIVE NET CREDIT LOSSES AS A PERCENT OF ORIGINAL CERTIFICATE BALANCE (85 / 1) 0.07%
87 Net Charge-off Percentage - Current Collection Period - (Annualized) 0.56%
88 Charge-off Percentage - Average of last 3 Collection Periods 0.28%
89 Repos in Inventory delinquent 30 to 60 days ($) $0.00
90 Delinquent Contract Percentage ($ past due 60 days or more + repo inventory
past due 30 to 60 days) 0.84%
91 Delinquency Percentage 0.45%
92 Remaining Weighted Average Maturity (Months) 51.4
</TABLE>
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I certify that the computations reflected above for the collection period ended
30-Nov-96 are accurate and have been prepared in accordance with the Pooling and
Servicing Agreement dated September 1, 1996.
By : ______________________________________Date: _______________
Name: Don Duffy
Title: Executive Vice President
