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) September 30, 1996
MERIT Securities Corporation, Series 7
(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) 967-5800
<PAGE>
MERIT Securities Corporation, Series 6
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 7 makes monthly remittances to security
holders. The latest remittance was made September 30, 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 September 30, 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.
October 4, 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 September 30, 1996
5
MERIT SECURITIES CORPORATION
Payments per Bond Denomination
MERIT 7
Payment Date: 30-Sep-96
Reporting Month: August
<TABLE>
<CAPTION>
Interest Interest Principal
Original Original Integral Record Accrual Payment Payment Ending Remaining
Class Balance Pct Pool Denomination Date Factor Factor Factor Balance Principal Factor
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A-1 $435,000,000.00 78.06% $1,000.00 31-Aug-96 4.68539586 4.68539586 21.21000547 $404,020,489.29 0.92878273
Class A-2 $45,500,000.00 8.17% $1,000.00 31-Aug-96 12.50000000 12.50000000 0.00000000 $45,500,000.00 1.00000000
Class A-3 $26,300,000.00 4.72% $1,000.00 31-Aug-96 5.70194144 5.70194144 9.14535703 $25,467,087.13 0.96833031
Class A-4 $7,000,000.00 1.26% $1,000.00 31-Aug-96 6.25000000 6.25000000 0.00000000 $7,000,000.00 1.00000000
Class A-5 $14,750,000.00 2.65% $1,000.00 31-Aug-96 4.51769763 4.51769763 9.28065695 $13,373,976.40 0.90671026
$528,550,000.00 $495,361,552.82
</TABLE>
<PAGE>
MERIT SECURITIES CORPORATION
Credit Enhancement Summary
MERIT 7
Payment Date: 30-Sep-96
Reporting Month August
Reserve Funds and Subordination
<TABLE>
<CAPTION>
Initial Coverage Beginning Coverage Adjustments Losses Insured Balance Ending Coverage
Type
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Pool Over Collateralization 5.15% $28,702,601.63 5.38% $28,702,601.63 $0.00 $0.00 $524,064,154.45 5.48% $28,702,601.63
</TABLE>
Surplus Summary
Class Total Distribution
Surplus $775,075.92
Delinquency Statistics
Current % of
# of Loans Balance Current Balance
30+ Days 85 $9,654,202 1.84%
60+ Days 34 $3,601,864 0.69%
90+ Days 36 $4,093,835 0.78%
Foreclosure 13 $754,953 0.14%
REO 0 $0 0.00%
Totals 168 $18,104,853 3.45%
Advances on Delinquencies $125,551.30
Non-Recoverable Advances on Delinquencies $0.00
<PAGE>
MERIT SECURITIES CORPORATION
Funds Account Activity Report
MERIT 7
Payment Date: 30-Sep-96
Report Date: August
Collateral Proceeds Account
<TABLE>
<S> <C> <C>
Beginning Balance $0.00
Deposits Withdrawals
Interest Net of Servicing Fee $3,695,984.39 Interest Payments $2,867,244.30
Principal $9,603,764.96 Principal Payments $9,603,764.96
Deposits From Reserve Fund $0.00 Surplus $775,075.92
Other Deposits $0.00 MBIA Fee $53,664.17
Discount Principal Reserve $0.00
Total Deposit $13,299,749.35 Total Withdrawals $13,299,749.35
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 7
Payment Date: 30-Sep-96
Reporting Month: August
<TABLE>
<CAPTION>
Class
Interest Beginning Interest Interest Principal Total Applied Ending
Class Rate Balance Accrual Payment Payment Distribution Losses Balance
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A-1 5.918440% $413,246,841.67 $2,038,147.20 $2,038,147.20 $9,226,352.38 $11,264,499.58 $0.00 $404,020,489.29
Class A-2 15.000000% $45,500,000.00 $568,750.00 $568,750.00 $0.00 $568,750.00 $0.00 $45,500,000.00
Class A-3 7.000000% $25,707,610.02 $149,961.06 $149,961.06 $240,522.89 $390,483.95 $0.00 $25,467,087.13
Class A-4 7.500000% $7,000,000.00 $43,750.00 $43,750.00 $0.00 $43,750.00 $0.00 $7,000,000.00
Class A-5 5.918440% $13,510,866.09 $66,636.04 $66,636.04 $136,889.69 $203,525.73 $0.00 $13,373,976.40
$504,965,317.78 $2,867,244.30 $2,867,244.30 $9,603,764.96 $12,471,009.26 $0.00 $495,361,552.82
</TABLE>
<TABLE>
<CAPTION>
Class CUSIP Priority Principal Type Interest Type
<S> <C> <C> <C> <C>
Class A-1 589962AT6 Senior Sequential Floater
Class A-2 589962AU3 Senior Sequential Floater
Class A-3 589962AV1 Senior Sequential Fixed
Class A-4 589962AW9 Senior Sequential Fixed
Class A-5 589962AX7 Senior Sequential Floater
</TABLE>
