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) May 28, 1996
MERIT Securities Corporation, Series 3
(Exact name of registrant as specified in charter)
Virginia 03992 54-1736551
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
4880 Cox Road
Glen Allen, Virginia
Attn: Vice President 23060
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code (804) 967-7400
<PAGE>
MERIT Securities Corporation, Series 3
Form 8-K
INDEX
Page Number
Item 5. Other Events 3
Item 7. Financial Statements and Exhibits 3
SIGNATURES 4
INDEX OF EXHIBITS 5
2
<PAGE>
ITEM 5. OTHER EVENTS
The MERIT Securities Corporation, Series 3 makes monthly remittances to security
holders. The latest remittance was made May 28, 1996. We have furnished a
monthly remittance statement delivered to the trustee with security holder
payment instructions.
Monthly Remittance Statement.........................................Exhibit 1
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibits
1. Monthly Remittance Statement dated as of May 28, 1996
3
<PAGE>
Signatures
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
June 6, 1996 MERIT SECURITIES CORPORATION
By:______________________________
Name: Lisa R. Cooke
Title: Vice President
4
<PAGE>
INDEX OF EXHIBITS
Page of Sequentially
Numbered Pages
1. Monthly Remittance Statement dated 6-10
as of May 28, 1996
5
MERIT SECURITIES CORPORATION
PAYMENTS PER BOND DENOMINATION
MERIT SERIES 3
Payment Date: 28-May-96
Reporting Month: April
<TABLE>
<CAPTION>
Interest Interest Principal
Original Original Integral Record Accrual Payment Payment
Class Balance Pct Pool Denomination Date Factor Factor Factor
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Merit 3 Class A $144,348,444.00 85.00% $1,000.00 30-Apr-96 2.88712852 2.88712852 28.54580795
Merit 3 Class B $13,585,736.00 8.00% $1,000.00 30-Apr-96 12.50000000 12.50000000 0.00000000
$157,934,180.00
<CAPTION>
Ending Remaining
Balance Principal Factor
-----------------------------------
<S> <C>
Merit 3 Class A $85,383,351.11 0.59150864
Merit 3 Class B $13,585,736.00 1.00000000
$98,969,087.11
</TABLE>
<PAGE>
MERIT SECURITIES CORPORATION
Credit Enhancement Summary
MERIT SERIES 3
Payment Date: 28-May-96
Reporting Month April
Reserve Funds and Subordination
<TABLE>
<CAPTION>
Initial Coverage Beginning Coverage Adjustments Losses
----------------------------------------------------------------------------------------------
Type % $ % $ $ $
----------------------------------------------------------------------------------------------
<S> <C>
Pool Over Collaterization Amount 7.00% $11,887,519.82 10.34% $11,887,519.82 $0.00 $33,785.82
<CAPTION>
Insured Balance Ending Coverage
----------------------------------------------
Type $ % $
----------------------------------------------
<S> <C>
Pool Over Collaterization Amount $110,856,606.93 10.72% $ 11,887,519.82
</TABLE>
Insurance Policies
<TABLE>
<CAPTION>
Initial Coverage Beginning Coverage Adjustments
--------------------------------------------------------------------------------------
Type Purpose % $ % $ $
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Insurance Policy Pool Insurance 25.00% $2,619,994.00 28.39% $2,619,944.00 $0.00
</TABLE>
Losses Insured Balance Ending Coverage
----------------------------------------------------------
Type $ $ $
- --------------------------------------------------------------------------------
Insurance Policy $0.00 $8,095,045.83 32.36% $2,619,944.00
Surplus Summary
Class Total Distribution
Surplus $307,954.83
DELINQUENCY STATISTICS
Current % of
# of Loans Balance Current Balance
30+ Days 29 $4,239,900 3.82%
60+ Days 10 $1,588,598 1.43%
90+ Days 31 $6,809,811 6.14%
Foreclosure 19 $3,030,813 2.73%
REO 8 $1,281,207 1.16%
Totals 97 $16,950,329 15.29%
Advances on Delinquencies $146,747.82
Non-Recoverable Advances on Delinquencies $0.00
<PAGE>
MERIT SECURITIES CORPORATION
FUNDS ACCOUNT ACTIVITY REPORT
MERIT SERIES 3
PAYMENT DATE: 28-MAY-96
REPORT DATE: APRIL
COLLATERAL PROCEEDS ACCOUNT
<TABLE>
<S> <C>
Beginning Balance $0.00
DEPOSITS WITHDRAWALS
Interest Net of Servicing Fee $910,199.15 Interest Payments $586,574.21
Principal $4,120,542.96 Principal Payments $4,120,542.96
Deposits From Reserve Fund $0.00 Surplus $307,954.83
Other Deposits $0.00 FSA Fee $15,670.11
Discount Principal Reserve $0.00
TOTAL DEPOSIT $5,030,742.11 TOTAL WITHDRAWALS $5,030,742.11
Ending Balance $0.00
</TABLE>
Note: "Principal" and Interest Net of Servicing Fee" includes Advances on
Delinquencies
<PAGE>
MERIT SECURITIES CORPORATION
MONTHLY PAYMENT REPORT
Payment Statement
MERIT SERIES 3
Payment Date: 28-May-96
Reporting Month: April
<TABLE>
<CAPTION>
Class
Interest Beginning Interest Interest Principal Total
Class Rate Balance Accrual Payment Payment Distribution
- ------------------------------------------------------------------------------------------------------------
<S> <C>
Merit 3 Class A 5.587500% $89,503,894.07 $416,752.51 $416,752.51 $4,120,542.96 $4,537,295.47
Merit 3 Class B 15.000000% $13,585,736.00 $169,821.70 $169,821.70 $0.00 $169,821.70
$103,089,630.07 $586,574.21 $586,574.21 $4,120,542.96 $4,707,117.17
<CAPTION>
Applied Ending
Class Losses Balance CUSIP Priority Principal Type Interest Type
- ------------------------------------------------------------------------------------------------
<S> <C>
Merit 3 Class A $0.00 $85,383,351.11 589962AG4 Senior Sequential Floater
Merit 3 Class B $0.00 $13,585,736.00 589962AH2 Senior Sequential Floater
$0.00 $98,969,087.11
</TABLE>
