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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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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 [No Fee Required]
Commission file number 33-87402
Tryon Mortgage Funding, Inc. (as Sponsor under the Pooling and Servicing
Agreement, dated as of April 1, 1996 caused the issue of Tryon Mortgage
Funding Corporation Mortgage Pass-Through Certificates, Series 1996-1)
(Exact name of registrant as specified in its charter)
Delaware 56-1930085
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(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
100 North Tryon Street, 11th Floor, Charlotte, North Carolina 28255
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (704) 386-5000
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 [X] No [ ]
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 20-K or any amendment to
this Form 10-K. [X]
State the aggregate market value of the voting stock held by non-affiliates of
the registrant. Not applicable.
Indicate the number of shares outstanding of the registrant's classes of common
stock, as of the latest practicable date. Not applicable.
Documents Incorporated by Reference. None.
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PART I
Item 1. Business
Not applicable.
Item 2. Properties
Tryon Mortgage Funding Series 1996-1 (the "Trust") was established
pursuant to a Pooling and Servicing Agreement dated as of April 1, 1996 (the
"Pooling and Servicing Agreement") among Tryon Mortgage Funding, Inc. (the
"Sponsor"), Spokane Mortgage Co. (the "Master Servicer"), The Bank of New York
(the "Trustee"), and Metropolitan Mortgage & Securities Co., Inc., Summit
Securities, Inc., Western United Life Assurance Company, and Old Standard Life
Insurance Company (each, a "Seller"). Pursuant to the Pooling and Servicing
Agreement, the Sellers sold to the Trust, and the Master Servicer agreed to
service on behalf of the Trust, a pool of fixed rate mortgage loans (including
land sale contracts for the sale of real estate). Also on that date, the Trust
issued mortgage backed securities consisting of $46,688,764 Class A-1 6.35%
Mortgage Pass-Through Certificates; $20,887,079 Class A-2 7.30% Mortgage
Pass-Through Certificates; $12,286,517 Class A-3 7.55% Mortgage Pass-Through
Certificates; $27,030,337 Class A-4 7.70% Mortgage Pass-Through Certificates;
$4,484,579 Class B-1 7.75% Mortgage Pass Through Certificates and $4,115,983
Class B-2 Mortgage Pass-Through Certificates (collectively, the
"Certificates").
The property of the Trust includes the pool of mortgage loans secured by
residential property which were acquired from various originators.
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Item 3. Legal Proceedings
There are no material pending legal proceedings with respect to the
Trust, involving the Trust, the Trustee, or the Servicer, other than ordinary
or routine litigation incidental to the Trust assets or the Trustee or the
Servicer's duties under the applicable Pooling and Servicing Agreement.
Item 4. Submission of Matters to a Vote of Security Holders
None.
PART II
Item 5. Market for the Registrant's Common Equity and Related Stockholder
Matters
(a) Market Information. There is no established public trading
market for the Certificates.
(b) Holders. Since each of the Certificates was issued in book entry
form only, there is only one holder of record of each
Certificate.
(c) Dividends. The Trust does not pay dividends. Information as to
distributions to Certificateholders is provided in the Trust's
Form 8-K filings.
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.
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
Not applicable.
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. Not applicable.
2. Not applicable.
3. Exhibits:
99.1 Annual Independent Certified Public Accountants' Report.
99.2 Annual Statement as to Compliance.
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(b) Reports on Form 8-K
A Current Report on Form 8-K pursuant to Items 5 and 7 for the following
monthly distribution dates during 1996 and 1997, including the Trustee's
statement for each of the following due periods was filed.
June 20, 1996
July 22, 1996
August 20, 1996
September 20, 1996
October 21, 1996
November 20, 1996
December 20, 1996
January 21, 1997
February 20, 1997
March 20, 1997
(c) The exhibits filed as part of this report are listed in the Exhibit Index
on page 6.
(d) Not applicable.
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SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
Tryon Mortgage Funding, Inc., Series 1996-1
(Sponsor)
Dated: March 27, 1997 By: /s/ James H. Sherrill
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Name: James H. Sherrill
Title: Vice President
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EXHIBIT INDEX
99.1 Annual Independent Certified Public Accountants' Report p. 7
99.2 Annual Statement as to Compliance p. 8
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EXHIBIT 99.1
Coopers & Lybrand L.L.P.
Coopers
& Lybrand (logo) a professional services firm
INDEPENDENT ACCOUNTANT'S REPORT
Board of Directors and Stockholder
Metwest Mortgage Services, Inc.
Spokane, Washington
We have examined management's assertion about Metwest Mortgage Services,
Inc.'s (d/b/a) Metwest Services)(the Company) compliance with the minimum
servicing standards identified in Mortgage Bankers Association of America's
Uniform Single Attestation Program for Mortgage Bankers (USAP) as of and for the
year ended September 30, 1996, 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 entity'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 of the Company's compliance with the minimum servicing
standards.
In our opinion, management's assertion that Metwest Mortgage Services, Inc.
complied with the aforementioned minimum servicing standards as of and for the
year ended September 30, 1996 is fairly stated in all material respects.
/s/ Coopers & Lybrand L.L.P.
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Spokane, Washington
November 27, 1996
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EXHIBIT 99.2
METWEST MORTGAGE SERVICES, INC.
OFFICER'S CERTIFICATE
I, Bruce J. Blohowiak, hereby certify that I am the duly elected Vice
President of Metwest Mortgage Services, Inc., a Washington corporation, (the
"Corporation") and, pursuant to Section 3.14 of the Pooling and Servicing
Agreement, dated as of April 1, 1996, entered into by and among the
Corporation, the Sellers (as defined therein), The Bank of New York and Tryon
Mortgage Funding, Inc. (the "Agreement"), I do hereby certify that a review
of the activities of the Corporation during the preceding calendar year and the
performance of the Corporation under the Agreement was conducted under my
supervision and that, to the best of my knowledge based upon such review, the
Corporation has fulfilled all of its obligations under the Agreement throughout
the year.
In Witness Whereof, I have hereunto signed my name this 26th day of
March, 1997.
/s/ Bruce J. Blohowiak
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Bruce J. Blohowiak
Vice President
