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) June 30, 1997
MERIT Securities Corporation, Series 4
(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.)
10900 Nuckols Road
Glen Allen, Virginia
Attn: Vice President 23060
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code (804) 217-5800
<PAGE>
MERIT Securities Corporation, Series 4
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 4 makes monthly remittances to security
holders. The latest remittance was made June 30, 1997. 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 June 30, 1997
3
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.
July 3, 1997 MERIT SECURITIES CORPORATION
By:_________________________
Name: Lisa R. Cooke
Title: Vice President
4
INDEX OF EXHIBITS
Page of Sequentially
Numbered Pages
1. Monthly Remittance Statement dated 6-10
as of June 30, 1997
5
MERIT SECURITIES CORPORATION
Monthly Payment Report
Payment Statement
MERIT Series 4
Payment Date: 30-Jun-97
Reporting Month: May
<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>
Merit4 A1 6.187500% $167,506,969.42 $863,707.81 $863,707.81 $6,803,343.37 $7,667,051.18 $0.00 $160,703,626.05
Merit4 A2 15.000000% $42,573,000.00 $532,162.50 $532,162.50 $0.00 $532,162.50 $0.00 $42,573,000.00
$210,079,969.42 $1,395,870.31 $1,395,870.31 $6,803,343.37 $8,199,213.68 $0.00 $203,276,626.05
</TABLE>
Class CUSIP Priority Principal Type Interest Type
Merit4 A1 589962AJ8 Senior Sequential Floater
Merit4 A2 589962AK5 Senior Sequential Floater
<PAGE>
MERIT SECURITIES CORPORATION
Payments per Bond Denomination
MERIT Series 4
Payment Date: 30-Jun-97
Reporting Month: May
<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>
Merit4 A1 $326,920,000.00 84.50% $1,000.00 31-May-97 2.64195464 2.64195464 20.8104226 $160,703,626.05 0.49156866
Merit4 A2 $42,573,000.00 11.00% $1,000.00 31-May-97 12.5000000 12.5000000 0.0000000 $42,573,000.00 1.00000000
$369,493,000.00 $203,276,626.05
</TABLE>
<PAGE>
MERIT SECURITIES CORPORATION
Funds Account Activity Report
MERIT Series 4
Payment Date: 30-Jun-97
Report Date: May
Collateral Proceeds Account
<TABLE>
<S> <C> <C>
Beginning Balance $0.00
Deposits Withdrawals
Interest Net of Servicing Fee $1,588,741.85 Interest Payments $1,395,870.31
Principal $6,770,479.88 Principal Payments $6,803,343.37
Deposits From Discount Principle Reserve Fund $74,817.57 Surplus $162,380.05
Other Deposits $0.00 FSA Fee $30,491.49
Discount Principal Reserve $41,954.08
Total Deposit $8,434,039.30 Total Withdrawals $8,434,039.30
Ending Balance $0.00
</TABLE>
<PAGE>
MERIT SECURITIES CORPORATION
Credit Enhancement Summary
MERIT Series 4
Payment Date: 30-Jun-97
Reporting Month May
Reserve Funds and Subordination
<TABLE>
<CAPTION>
Initial Coverage Beginning Coverage Adjustments Losses(1) Insured Balance Ending Balance
Type
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Pool Over Collaterization 4.50% $17,411,678.00 6.96% $15,713,761.03 $0.00 $601,114.23 $218,505,933.48 6.97% $15,229,306.77
</TABLE>
<TABLE>
<CAPTION>
Beginning Current Ending
Balance Deposits Withdrawal for Losses DPR Balance
<S> <C> <C> <C> <C>
Discount Principal Reserve Account $32,863.49 $41,954.08 $74,817.57 $0.00
(Included in above coverage amount)
</TABLE>
Insurance
<TABLE>
<CAPTION>
Initial Coverage Beginning Coverage Adjustments Losses Insured Balance Ending Balance
Type Purpose
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Insurance Policy Pool Insurance 25.00% $2,987,981.88 37.76% $2,987,981.88 $0.00 $0.00 $7,697,714.87 38.82% $2,987,981.88
</TABLE>
Surplus Summary
Class Total Distribution
Surplus $162,380.05
Delinquency Statistics
Current % of
# of Loans Balance Current Balance
30+ Days 59 $9,684,499 4.43%
60+ Days 23 $4,686,774 2.14%
90+ Days 36 $5,658,843 2.59%
Foreclosure 37 $6,560,697 3.00%
REO 19 $4,014,895 1.84%
Totals 174 $30,605,709 14.01%
Advances on Delinquencies $256,956.67
Non-Recoverable Advances on Delinquencies $0.00
1. Adjustment and Losses are first charged/credited to Discount Principle
Reserve, second to interest from the Overcollateralization amount, and third
to Pool Overcollateralization, if Discount Principle would otherwise be less
than $0.00
