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                                                                  Exhibit 13(c)
                                                                  Page 1 of 7

                   ANNUAL SERVICER AND SETTLEMENT CERTIFICATE

                            DEALER NOTE MASTER TRUST


                              CLASS A, DEALER NOTE
                            ASSET BACKED CERTIFICATES
                                  SERIES 1998-1


Under the Series 1998-1 Supplement dated as of July 17, 1998 (the  "Supplement")
by  and  among  Navistar  Financial  Corporation,  ("NFC"),  Navistar  Financial
Securities  Corporation  ("NFSC")  and The Bank of New  York,  as  trustee  (the
"Master Trust Trustee") to the Pooling and Servicing  Agreement dated as of June
8, 1995 (as amended and  supplemented,  the "Agreement") by and among NFC, NFSC,
the Master Trust Trustee and The Chase  Manhattan  Bank, as 1990 Trust  Trustee,
the Master Trust Trustee is required to prepare certain  information  each month
regarding  current  distributions  to certain  accounts  and  payments to Series
1998-1  Certificateholders as well as the performance of the Master Trust during
the previous month. An annual aggregation of such monthly reports for the period
November 1, 1998  through  October 31, 1999 with  respect to  distributions  and
performance  of the Trust is set forth below in Section 3. The  information  set
forth in Section 4 below  represents the monthly  activity for Series 1998-1 for
the period of March 1, 1999 through October 31, 1999. Certain of the information
is presented on the basis of an original principal amount of $1,000 per Investor
Certificate.  Certain  other  information  is presented  based on the  aggregate
amounts  for the  Master  Trust  as a  whole.  Capitalized  terms  used  but not
otherwise  defined herein shall have the meanings  assigned to such terms in the
Agreement and the Supplement.

1.  NFC is Servicer under the Agreement.

2.  The undersigned is a Servicing Officer

3.  Master Trust Information for the period of November 1,
    ------------------------------------------------------
    1998 through October 31, 1999:
    -----------------------------

    3.1   The amount of the Advance, if any, for the Due           $264,946.70
          Period

    3.2   The amount of NITC Finance Charges for the Due        $45,271,367.49
          Period

    3.3   The average daily balance of Dealer Notes          $1,046,746,278.08
          outstanding during the Due Period

    3.4   The total amount of Advance Reimbursements for                 $0.00
          the Due Period

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                                                                 Exhibit 13(c)
                                                                 Page 2 of 7

    3.5   The aggregate principal amount of Dealer Notes     $3,890,625,634.45
          repaid during the Due Period.

    3.6   The aggregate principal amount of Dealer Notes     $3,998,162,163.17
          purchased by the Master Trust during the Due
          Period.

    3.7   The amount of the Servicing Fee for the Due           $10,500,957.35
          Period.

    3.8   The average daily Master Trust Seller's              $421,764,339.65
          Interest during the Due Period.

    3.9   The Master Trust Seller's Interest as of the         $505,364,183.27
          Distribution Date (after giving effect to the
          transactions set forth in Article IV of the
          Supplement).

    3.10  The aggregate amount of Collections for the        $3,986,125,362.34
          Due Period.

    3.11  The aggregate amount of Finance Charge                $95,499,727.89
          Collections for the Due Period.

    3.12  The aggregate amount of Principal Collections      $3,890,625,634.45
          for the Due Period.

    3.13  The amount of Dealer Note Losses for the Due                   $0.00
          Period.

    3.14  The aggregate amount of Dealer Notes as of the     $1,105,364,183.27
          last day of the Due Period.

    3.15  The aggregate amount of funds on deposit in                    $0.00
          the Excess Funding Account as of the end of
          the last day of the Due Period (after giving
          effect to the transactions set forth in
          Article IV of the Supplement and Article IV of
          the Agreement.

    3.16  Eligible Investments in the Excess Funding
          Account:

          a.  The aggregate amount of funds invested in                  $0.00
              Eligible Investments.

          b.  Description of each Eligible Investment.                   $0.00


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                                                                  Exhibit 13(c)
                                                                  Page 3 of 7


          c.  The rate of interest applicable to each                    0.00%
              such Eligible Investment.

          d.  The rating of each such Eligible Investment                $0.00

    3.17  The aggregate amount of Dealer Notes issued to        $14,539,995.12
          finance OEM Vehicles, as of the end of the Due
          Period.

    3.18  The Dealers with the five largest aggregate
          outstanding principal amounts of Dealer Notes
          in the Master Trust as of the end of the Due
          Period.
          i)     Hoglund Bus Company
          ii)    Interstate Motor Trucks
          iii)   Prairie International
          iv)    KCR
          v)     Southwest International

    3.19  Aggregate amount of delinquent principal                       0.11%
          payments (past due greater than 30 days) as a
          percentage of the total principal amount
          outstanding, as of the end of the Due Period.



4.  Series 1998-1 Information for the period of March 1, 1999
    ---------------------------------------------------------
    through October 31, 1999
    ------------------------

    4.1   The Deficiency Amount as of the Transfer Date                  $0.00
          (after giving effect to the transactions set
          forth in Article IV of the Supplement).

    4.2a  The Maximum Subordinated Amount as of the             $31,000,000.00
          Transfer Date (after giving effect to the
          transactions set forth in Article IV of the
          Supplement).

    4.2b  The Available Subordinated Amount as of the           $31,000,000.00
          Transfer Date (after giving effect to the
          transactions set forth in Article IV of the
          Supplement)

    4.3   The Projected Spread for the following                 $2,500,000.00
          Distribution Period.

    4.4   The amount on deposit in the Spread Account as         $2,500,000.00
          of the Transfer Date (after giving effect to
          the transactions set forth in Article IV of
          the Supplement).

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                                                                  Exhibit 13(c)
                                                                  Page 4 of 7

    4.5   The aggregate amount on deposit in the                         $0.00
          Liquidity Reserve Account as of the Transfer
          Date (after giving effect to the transactions
          set forth in Article IV of the Supplement.

    4.6   The Invested Amount as of the Distribution           $200,000,000.00
          Date (after giving effect to the transactions
          set forth in Article IV of the Supplement and
          to the payments made on the Distribution Date).

    4.7   The amount of Series Allocable Dealer Notes                    $0.00
          Losses for the Due Period.

    4.8   The amount of Series Allocable Finance Charge         $20,997,656.46
          Collections for the Due Period.

    4.9   The amount of Series Allocable Principal             $882,755,200.98
          Collections for the Due Period.

    4.10  The amount of Series Principal Account Losses                  $0.00
          for the Due Period.

    4.11  The amount of Investor Dealer Note Losses for                  $0.00
          the Due Period.

    4.12  The amount of Investor Finance Charge                 $12,208,912.31
          Collections for the Due Period.

    4.13  The amount of Investor Principal Collections         $514,049,512.09
          for the Due Period.

    4.14  The amount of Available Certificateholder's           $12,359,947.02
          Interest Collections for the Due Period.

    4.15  The amount of Series 1998-1 Shared Principal         $514,049,512.09
          Collections for the Due Period.

    4.16  The aggregate amount of the Series 1998-1                      $0.00
          Principal Shortfall, if any, for the Due
          Period.

    4.17  The Seller's Percentage for the Due Period.                   41.75%

    4.18  The Excess Seller's Percentage for the Due                    32.73%
          Period.

    4.19  The aggregate amount of Seller's Principal           $368,705,688.88
          Collections for the Due Period.

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                                                                  Exhibit 13(c)
                                                                  Page 5 of 7

    4.20  The amount of Available Seller's Finance               $2,522,127.26
          Charge Collections for the Due Period.

    4.21  The aggregate amount of Available Seller's            $79,670,048.64
          Principal Collections for the Due Period.

    4.22  The aggregate amount of Excess Seller's              $289,035,640.23
          Principal Collections for the Due Period

    4.23  The Controlled Amortization Amount, if                         $0.00
          applicable, for the Due Period.

    4.24  The Minimum Series 1998-1 Master Trust                $37,000,000.00
          Seller's Interest as of the Distribution Date
          (after giving effect to the transactions set
          forth in Article IV of the Supplement).

    4.25  The Series 1998-1 Allocation Percentage for                   33.05%
          the Due Period.

    4.26  The Floating Allocation Percentage for the Due                58.25%
          Period.

    4.27  The Principal Allocation Percentage, if                        0.00%
          applicable, for the Due Period.

    4.28  The total amount, if any, to be distributed on         $8,585,540.99
          the Series 1998-1 Certificates on the
          Distribution Date.

    4.29  The total amount, if any, to be distributed on                 $0.00
          the Series 1998-1 Certificates on the
          Distribution Date allocable to the Invested
          Amount.

    4.30  The total amount, if any, to be distributed on         $7,252,220.27
          the Series 1998-1 Certificates on the
          Distribution Date allocable to interest on the
          Series 1998-1 Certificates.

    4.31  The Draw Amount as of the Transfer Date.                       $0.00

    4.32  The amount of Investor Charge-Offs as of the                   $0.00
          Transfer Date.

    4.33  The amount of reimbursement of Investor                        $0.00
          Charge-Offs as of the Transfer Date.

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                                                                  Exhibit 13(c)
                                                                  Page 6 of 7

    4.34  The amount of the Investor Servicing Fee to be         $1,333,320.72
          paid on such Distribution Date.

    4.35  The aggregate amount of funds on deposit in                    $0.00
          the Series Principal Account as of the end of
          the last day of the Due Period (after giving
          effect to the payments and adjustments made
          pursuant to Article IV of the Supplement and
          of the Agreement).

    4.36  The aggregate amount of funds on deposit in            $2,500,000.00
          the Spread Account as of the end of the last
          day of the Due Period (after giving effect to
          payments and adjustments made pursuant to
          Article IV of the Supplement and the
          Agreement).

    4.37  Eligible Investments in the Series Principal
          Account:

          a.  The aggregate amount of funds invested in                  $0.00
              Eligible Investments.

          b.  Description of each Eligible Investment:                     N/A

          c.  The rate of interest applicable to each                      N/A
              such Eligible Investment.

          d.  The rating of each such Eligible                             N/A
              Investment.

    4.38  Eligible Investments in the Liquidity Reserve
          Account:

          a.  The aggregate amount of funds invested in                  $0.00
              Eligible Investments.

          b.  Description of each Eligible Investment:                     N/A

          c.  The rate of interest applicable to each                      N/A
              such Eligible Investment.

          d.  The rating of each such Eligible                             N/A
              Investment.

    4.39  The amount of Excess Interest Collections for          $3,768,406.02
          the Due Period.


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                                                                  Exhibit 13(c)
                                                                  Page 7 of 7


    4.40  The amount of Investor Principal Collections         $514,049,512.09
          treated as Shared Principal Collections for
          the Due Period.

    4.41  The amount of Excess Interest Collections for                  $0.00
          the Due Period Allocated to other Series.

    4.42  The amount of Investor Principal Collections                   $0.00
          treated as Shared Principal Collections for
          the Due Period allocated to Other Series.

    4.43  The percentages and all other information                        N/A
          calculated pursuant to Sections 6.01 of the
          Supplement.

    4.44  The amount of Remaining Available Seller's                     $0.00
          Principal Collections for the Due Period.

    4.45  The amount of Series 1998-1 Shared Seller's          $368,705,688.88
          Principal Collections for the Due Period.

    4.46  The aggregate amount of Shared Seller's                        $0.00
          Principal Collections from Other Series for
          the Due Period.

    4.47  The amount of all Shared Seller's Principal                    $0.00
          Collections allocated to Series 1998-1 for the
          Due Period.

    4.48  The aggregate amount of all Shared Seller's                    $0.00
          Principal Collections allocated to Other
          Series for the Due Period.

    4.49  The aggregate amount of all Early Distribution                 $0.00
          Amounts paid or deemed paid for the
          Distribution Period.