Item 1. Business The Trust has as its only assets a pool of motor vehicle instalment sales contracts and instalment loans (the loan pool) originated by the Bank. At the origination date of the Trust, the loan pool totaled $749,736,311.45. Interests in the Trust are divided into: Class A Notes, which constituted 95.5% of the total loan pool at origination; and Class B Notes, which constituted 4.5%.
Item 2.
Item 2. Properties The Trust was created pursuant to a Pooling and Servicing Agreement (the Agreement) dated November 4, 1998, among the Bank and Bankers Trust Company (the Trustee). The Trust is the owner of receivables and related motor vehicle collateral generated in connection with credit extensions to purchasers of such motor vehicles, primarily passenger cars and light trucks.
The following table describes the current property of the Trust, and is a summary of the monthly reports filed previously on Form 8-K during 2000.
First Security Auto Owner Trust 1998-1 Annual Summary of Monthly Statements for Class A and Class B Noteholders
Servicer: First Security Bank, N.A.
For the Period December 24, 1999 Through December 23, 2000
Totals
(i) Principal Distribution 181,730,922.61 Class A-1 Amount - Class A-2 Amount 9,791,614.35 Class A-3 Amount 171,939,308.26 Class B Amount - (ii) Interest Distribution 14,911,556.05 Class A-1 Amount - Class A-2 Amount 39,464.56 Class A-3 Amount 12,862,400.96 Class B Amount 2,009,690.53
(iii) Basic Servicing Fee 2,896,974.15
(iv) Outstanding Advances(end of preceding collection period) 784,585.53
(v) Aggregate Receivables(end of preceding collection period) 208,822,399.33
(vi) Class A-1 Note Balance (end of Collection Period) - Class A-1 Pool Factor (end of Collection Period) - Class A-2 Note Balance (end of Collection Period) - Class A-2 Pool Factor (end of Collection Period) - Class A-3 Note Balance (end of Collection Period) 164,530,691.74 Class A-3 Pool Factor (end of Collection Period) 0.4889907 Class B Note Balance (end of Collection Period) 33,776,311.45 Class B Pool Factor (end of Collection Period) 1.0000000
Total Pool Balance (end of Collection Period) 198,307,003.19
(vii) Realized Losses 6,284,178.48
(viii) Noteholders Interest Carryover Shortfall - Noteholders Principal Carryover Shortfall -
(ix) Aggregate Purchase Amount of Receivables Repurchased by the Sellers or purchased by Servicers -
(x) Reserve Account Balance 15,302,928.65 Average Delinquency Ratio 0.9860% Average Net Loss Ratio 1.7782% Specified Reserve Account Balance 17,847,630.29
As a result of the operation of the Pooling and Servicing Agreement and the Yield Supplement Agreement, the distributions of principal and interest due to Noteholders during 2000 were all paid in full and on time.
The following table shows the credit quality of the Trust's portfolio of receivables in terms of delinquency and aggregate net loss data including: the number of such contracts and their percentage of the total loan pool; and the amount of such contracts and their percentage of the total loan pool.
As of December 31, 2000: Contracts Amounts Type # % $ % - ----------------------------- ----- ----- ------------ ------ (i) 30 - 59 Days Delinquent 585 1.99% 4,437,451.84 2.24% (ii) 60 - 89 Days Delinquent 229 0.78% 1,752,791.50 0.88% (iii) 90 or more days Delinquent 55 0.19% 397,714.61 0.20% Total 30 or More Days Delinquent 869 2.96% 6,587,957.95 3.32% Cumulative Aggregate Net Losses 8,175,732.44 1.09%
Item 3.
Item 3. Legal Proceedings There were no material legal proceedings pending at December 31, 2000 that would have a materially adverse effect on the Trust, the Bank, the Trustee, or the Underwriters in the performance of their obligations to the holders and beneficial owners of the Notes of the Trust.
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders There were no matters submitted to a vote of Noteholders in 2000.
Part II
Item 5.
Item 5. Market for Registrant's Common Equity and Related Security Holder Matters The holder of record of all the Notes as of December 31, 2000, was Cede & Co., the nominee of The Depository Trust Company (DTC) in the United States. Direct participants active in the DTC system include securities brokers and dealers, banks, trust companies, and clearing corporations. The Notes are not listed on any exchange.
Item 6.
Item 6. Selected Financial Data Omitted Per No-Action Letter dated March 21, 1989.
Item 7.
Item 7. Management's Discussion and Analysis of Results of Operations and Financial Condition Omitted per No-Action Letter dated March 21, 1989.
Item 8.
Item 8. Financial Statements and Supplementary Data Omitted per No-Action Letter dated March 21, 1989.
Item 9.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures None.
Part III
Item 10.
Item 10. Directors and Executive Officers Omitted per No-Action Letter dated March 21, 1989.
Item 11.
Item 11. Executive Compensation Omitted per No-Action Letter dated March 21, 1989.
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management (a) The holder of record of all of the Notes as of December 31, 2000, was Cede & Co., the nominee of The Depository Trust Company (DTC) in the United States. Direct participants active in the DTC system include securities brokers and dealers, banks, trust companies, and clearing corporations. (b) and (c) Because the Trust does not have any directors or officers, and since the usual meaning of control is not applicable to the Trust, no response is made to subparagraphs (b) and (c) per No-Action Letter dated March 21, 1989.
Item 13.
Item 13. Certain Relationships and Related Transactions There have been no transactions during 2000 between the Trustee, the Trust, and/or the Bank that qualify for disclosure under Item 404 of Regulation S-K.
During 2000, the Bank received a total of $2,896,974 in compensation for servicing the Trust portfolio. For its services to the Trust, the Trustee receives $5,000 for the first full year and $4,000 each year thereafter.
Part IV
Item 14.
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K (a) Exhibit Index 4.1, Pooling and Servicing Agreement (Ex. 4 to the Trust's Registration Statement on Form S-1, Reg. No. 333-35847, incorporated by reference.) 4.2, Yield Supplement Agreement (Ex. 4 to the Trust's Registration Statement on Form S-1, Reg. No. 333-35847, incorporated by reference.) 99, Officer's Certificate (b) Financial Statement Schedules and Reports on Form 8-K In lieu of audited financial statements, the Registrant issues a monthly Statement to Certificate Holders report containing aggregate financial data for each month that the Trust was in operation. These are reported on Form 8-K. These reports are not audited.
Signatures
Because the Trust has no directors or individual trustees, and because the Bank is merely the originator and servicer of the Trust, the Annual Report on Form 10-K will not be signed by a majority of the directors of the Bank or by any individuals other than an authorized officer of the Bank.
SIGNATURES
FIRST SECURITY AUTO OWNER TRUST 1998-1 Registrant
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Bank has duly caused this report to be signed for and on its behalf by the undersigned, thereunto duly authorized.
FIRST SECURITY AUTO OWNER TRUST 1998-1
By FIRST SECURITY BANK, N.A. (Seller and Servicer)
/s/ Brad D. Hardy March 22, 2001 _______________________________________________________ ____________________ Brad D. Hardy Date Authorized Officer
Exhibit 99 FIRST SECURITY AUTO OWNER TRUST 1998-1 OFFICER'S CERTIFICATE
Kevin Wilson Client Services Administrator Bankers Trust Company Corporate Trust & Agency Group Four Albany Street, 10th Floor New York, New York 10006
Dear Mr. Wilson:
This letter serves as the Officer's Certificate according to Section 3.10 of the Pooling and Servicing Agreement dated November 4, 1998 for the First Security Auto Owner Trust 1998-1. In accordance with Section 3.10: (i) a review of the activities First Security Bank, N.A. (the Bank) with respect to its servicing for the period of December 24, 1999 Through December 23, 2000 and the performance of its obligations under this Agreement has been made under such officer's supervision; and (ii) to the best of such officer's knowledge, based on such review, the Bank has fulfilled all of its obligations under this Agreement throughout this period, and there are no known defaults of the Bank under the Pooling and Servicing Agreement. Please contact us if you have any questions.
Sincerely,
/s/ Brad D. Hardy March 22, 2001 _______________________________________________________ ____________________ Brad D. Hardy Date Authorized Officer