NATIONSBANK COMPLETES ACQUISITION OF CHRYSLER FIRST INC.
CHARLOTTE, N.C., Feb. 1 /PRNewswire/ -- NationsBank (NYSE: NB) has completed its previously announced acquisition of substantially all of the assets and certain liabilities of Chrysler First Inc. (CFI) and its subsidiaries. NationsCredit, the name of the unit formed as a result of this purchase, is the second-largest consumer finance entity in the United States owned by a bank holding company. NationsCredit is based in Allentown, PA, and services receivables of approximately $4.5 billion. It has 280 offices in 33 states. As part of the acquisition, NationsBanc Financial Services Corp., a NationsBank subsidiary, assumed certain obligations of CFI and certain affiliates as servicer of securitizations of financial assets arranged by Chrysler First and those affiliates, except for the US Business Equity Loan Trust 1992-1. The securitizations will be listed in the NationsBank 8K filing related to this acquisition. NationsBanc Financial Services will assume the servicing obligations and be responsible for all contractual servicing responsibilities it assumes from CFI and its affiliates. Securities rating agencies are expected to confirm that this assumption will not adversely affect the ratings on the securities issued in connection with the securitization of CFI financial assets. As servicer, NationsBanc Financial Services will apply NationsBank policies, effective immediately. In certain cases, this may result in delinquent assets being written off earlier for financial reporting purposes than had been the policy of CFI. This should not impact any routine business dealings with individual borrowers. It also should not have a material affect on the default rate of securitized assets except possibly for: CFC Home Equity Loan Trust 1989-1; US Home Equity Loan Trust 1990-2; US Home Equity Loan Trust 1991-1, and US Home Equity Loan Trust 1991-2. The value of this change cannot be estimated at this time. NationsBank Corporation is the fourth-largest banking company in the United States with full-service banking centers in nine states and the District of Columbia. -0- 2/1/93 /CONTACT: Mary Waller of NationsBank, 704-386-5469/ (NB)
CO: NationsBank Corporation; Chrysler First Inc. ST: North Carolina, Pennsylvania IN: FIN SU: TNM
CM -- CH009 -- 1406 02/01/93 13:10 EST
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|Date:||Feb 1, 1993|
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