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.
Item 2. Properties.
Not applicable.
Item 3.
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.
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.
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.
Item 6. Selected Financial Data.
Not applicable.
Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Not applicable.
Item 8.
Item 8. Financial Statements and Supplementary Data.
Not applicable.
Item 9.
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
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