UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
X ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended December 31, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from to
Commission file number 333-1614
BENEFICIAL MORTGAGE CORPORATION
(Depositor and Master Servicer)
BENEFICIAL HOME EQUITY LOAN TRUST 1996-1
(Issuer in Respect of the Beneficial Home Equity Loan
Asset Backed Certificates, Series 1996-1)
(Exact name of registrant as specified in its charter)
New York (Issuer) 11-3314368 (Issuer)
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
301 North Walnut Street
Wilmington, Delaware 19801
(Address of principal executive offices of (Zip Code)
Depositor and Master Servicer)
Registrant's telephone number, including area code:
(302) 425-2500 (Depositor and Master Servicer)
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of each class: Name of each exchange on
which registered:
None None
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
None
(Title of class)
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 10-K or any amendment to this Form 10-K. [ ]
State the aggregate market value of the voting stock held by
non-affiliates of registrant. The aggregate market value shall be computed
by reference to the price at which the stock was sold, or the
average bid and asked prices of such stock, as of a specified date
within 60 days prior to the date of filing.
Not applicable
Documents Incorporated By Reference
Not Applicable
TABLE OF CONTENTS
Part I
Item 1.Business 3
Item 2.Properties 3
Item 3.Legal Proceedings
Item 4.Submission of Matters to a Vote of Security Holders 3
Part II
Item 5.Market for Registrant's Common Equity and Related
Shareholder Matters 4
Item 6.Selected Financial Data 4
Item 7.Management's Discussion and Analysis of Financial
Condition and Results of Operations 4
Item 8.Financial Statements and Supplementary Data 4
Item 9.Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure 4
Part III
Item 10.Directors and Executive Officers of the Registrant 4
Item 11.Executive Compensation 4
Item 12.Security Ownership of Certain Beneficial Owners and
Management 4
Item 13.Certain Relationships and Related Transactions 4
PART IV
Item 14.Exhibits, Financial Statements Schedules and Reports on
Form 8-K 5
Signature 6
Exhibit Index 7
PART I
Item 1. Business.
This Annual Report on Form 10-K relates to
the Beneficial Home Equity Loan Trust 1996-1 (the
"Trust"), a fund formed pursuant to a Pooling and
Servicing Agreement, dated as of April 1, 1996 (the
"Pooling and Servicing Agreement"), by and among
Beneficial Mortgage Corporation, as master servicer and
depositor (the "Master Servicer" and "Depositor"), and
The Chase Manhattan Bank (National Association), acting
thereunder not in its individual capacity but solely as
trustee. The Trust, which is the issuer of the
Certificates, became subject to the reporting
requirements under Section 13 of the Securities
Exchange Act of 1934, as amended, when the Registration
Statement on Form S-11 (No.333-1614) (the "Registration
Statement"), filed by the Depositor on behalf of the
Trust, became effective.
Capitalized terms used herein and not defined
have the same meanings ascribed to such terms in the
Pooling and Servicing Agreement.
This Annual Report on Form 10-K is being
filed by the Master Servicer, in its capacity as such
under the Pooling and Servicing Agreement, on behalf of
the Trust. The information reported and contained
herein has been prepared by the Master Servicer,
pursuant to the Pooling and Servicing Agreement.
Item 2. Properties.
Not applicable.
Item 3. Legal Proceedings.
The Master Servicer is not aware of any
material pending legal proceedings involving the Trust,
the Home Equity Loans comprising the Trust or the
Trustee or the Master Servicer with respect to or
affecting their respective duties under the Pooling and
Servicing Agreement.
Item 4. Submission of Matters to a Vote of Security
Holders.
No matter has been submitted to a vote of the
Certificateholders through the solicitation of proxies
or otherwise.
PART II
Item 5. Market for Registrant's Common Equity and
Related Shareholder Matters.
As of December 31, 1996, Cede & Co., the
nominee of the Depository Trust Company ("DTC"), was
the only holder of record of the Class A Certificates,
the Class M Certificates and the Class B Certificates.
DTC holds the Certificates for the accounts of others.
To the Master Servicer's knowledge, as of that date,
there was no principal market in which the Certificates
representing an equity interest in the Trust were
traded.
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
The information required by Items 10, 11, 12
and 13 is not applicable as the Trust does not have
directors or officers and Certificateholders have no
right to vote (except with respect to required consents
to certain amendments to the Pooling and Servicing
Agreement and upon certain events of default) or
control the Trust.
PART IV
ITEM 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K.
(a) (1) Financial Statements
Not applicable.
(2) Financial Statement Schedules
Not applicable.
(3) Exhibits
99.1 Servicer's Annual Statement of Compliance for the period
ended 12/31/96.
99.2 Servicer's Independent Auditor's Report of Servicer's
Servicing Activities.
(b) Current Reports on Form 8-K for the Trust were filed on
November 29, 1996 and December 30, 1996 during the quarter ended
December 31, 1996.
SIGNATURE
Pursuant to the requirements of Section 13 or
15(d) of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on
behalf of Beneficial Home Equity Loan Trust 1996-1 by
the undersigned, thereunto duly authorized.
BENEFICIAL HOME EQUITY LOAN TRUST 1996-1
Registrant
By:Beneficial Mortgage Corporation
(Depositor and Master Servicer)
By: /s/ Richard J. Zak
Richard J. Zak
Vice President (Chief Accounting Officer)
March 26, 1997
EXHIBIT INDEX
Exhibit Exhibit
Number
99.1 Servicer's Annual Statement of Compliance
99.2 Servicer's Independent Auditor's Report
of Servicer's Servicing Activities.
Exhibit 99.1
Servicer's Annual Statement of Compliance
OFFICER'S CERTIFICATE
This certificate pertains to the obligations of
Beneficial Mortgage Corporation (BMC), as Master
Servicer, under the terms of the Pooling and Servicing
Agreement (P&S Agreement) dated April 1, 1996, by and
among BMC, as depositor and master servicer, and The
Chase Manhattan Bank (National Association), as trustee
pursuant to which the Beneficial Home Equity Loan Asset
Backed Certificates, Series 1996-1, were issued on
April 30, 1996.
I certify that a review of the activities of BMC as
Master Servicer during the year ended December 31, 1996
and of it performance under the P&S Agreement have been
made under my supervision and to the best of my
knowledge, based on such review, BMC has fulfilled all
of its material obligations under the P&S Agreement for
the year.
/S/ Richard J. Zak
Richard J. Zak
Vice President -
Principal Accounting Officer
Beneficial Mortgage Corporation
March 26, 1997
Exhibit 99.2
Servicer's Independent Auditor's Report on Servicer's Servicing Activity
To the Board of Directors of
Beneficial Mortgage Corporation
We have examined the accompanying
management's assertion about Beneficial Mortgage
Corporation's compliance with the minimum servicing
standards identified in the Mortgage Bankers
Association of America's Uniform Single Attestation
Program for Mortgage Bankers (USAP) as of and for the
period ended December 31, 1996, which is required by
the Pooling and Servicing Agreement dated as of April
1, 1996 between Beneficial Mortgage Corporation, as
depositor and master servicer, and The Chase Manhattan
Bank (National Association), as trustee, pursuant to
which the Beneficial Home Equity Loan Asset Backed
Certificates, Series 1996-1 were issued. Management is
responsible for Beneficial Mortgage Corporation's
compliance with those minimum servicing standards. Our
responsibility is to express an opinion on management's
assertion about the entity's compliance based upon 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 Beneficial
Mortgage Corporation'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 on
Beneficial Mortgage Corporation's compliance with the
minimum servicing standards.
In our opinion, management's assertion that
Beneficial Mortgage Corporation complied with the
aforementioned minimum servicing standards as of and
for the year ended December 31, 1996 is fairly stated,
in all material respects.
This report is intended solely for the
information and use of the Board of Directors and the
management of Beneficial Mortgage Corporation and The
Chase Manhattan Bank (National Association) and should
not be used of any other purpose.
DELOITTE AND TOUCHE LLP
Parsippany, New Jersey
March 20, 1997
MANAGEMENT'S ASSERTION
Beneficial Mortgage Corporation, an indirect wholly-
owned subsidiary of Beneficial Corporation (the
"Company"), has compiled in all material respects with
the minimum servicing standards set forth in the
Mortgage Bankers Association of America's Uniform
Single Attestation Program for Mortgage Bankers as of
and for the period ended December 31, 1996, which is
required by the Pooling and Servicing Agreement dated
as of April 1, 1996 between Beneficial Mortgage
Corporation, as depositor and master servicer, and The
Chase Manhattan Bank (National Association), as
trustee, pursuant to which the Beneficial Home Equity
Loan Asset Backed Certificates, Series 1996-1 were
issued. As of and for this same period, the Company
had in effect a fidelity bond and errors and omissions
policy in the amount of $35,000,000.
/S/ Richard J. Zak
Richard J. Zak
Vice President
and Chief Accounting Officer
March 20, 1997
