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

     For the fiscal year ended December 31, 1998

___  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period from ___________________ to ___________________

                        Commission File Number 333-33733

                 CAPITOL REVOLVING HOME EQUITY LOAN TRUST 1997-1

     (Issuer in respect of the Capitol Revolving Home Equity Loan Asset Backed 
                          Certificates, Series 1997-1)
             (Exact name of registrant as specified in its charter)

              Maryland                                          52-0897004
     -------------------------------                ----------------------------
     (State or other jurisdiction of                         (I.R.S. Employer
     incorporation or organization)                          Identification No.)

          8401 Connecticut Avenue
          Chevy Chase, Maryland                                      20815
    --------------------------------                ----------------------------
     (Address of principal executive offices)                     (Zip Code)

     Registrant's telephone number, including area code: (301) 986-7000

     Securities registered pursuant to Section 12(b) of the Act:

                                      None

     Securities registered pursuant to Section 12(g) of the Act:

                                      None

                  Indicate by check mark  whether the  registrant  has (1) 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 
                      ---              ---
       The registrant  has no voting stock or class of common stock  outstanding
       as of the date of this report.



<PAGE>

                                INTRODUCTORY NOTE

     Chevy Chase Bank, F.S.B. (the  "Originator") is the originator,  seller and
servicer under the Pooling and Servicing  Agreement (the "Agreement"),  dated as
of November 1, 1997,  by and between the  Originator  and the U.S. Bank National
Association,  as trustee,  providing  for the issuance of the Capitol  Revolving
Home   Equity   Loan   Asset   Backed   Certificates,   Series   1997-  1,  (the
"Certificates"), and is the originator of the Capitol Revolving Home Equity Loan
Trust 1997-1 (the "Registrant").  The Certificates do not represent  obligations
of, or any interest in, the Originator.  The Originator has made application for
an exemption from certain reporting requirements.  Pursuant to a letter from the
Commission's  Office of Chief Counsel,  Division of Corporation  Finance,  dated
February 6, 1991 granting the  Originator's  application,  the Originator is not
required  to respond to various  items of Form 10-K.  Such items are  designated
herein as "Not Applicable."

                                     PART I

Item 1.   Business

          Not Applicable.

Item 2.   Properties

          Not Applicable.

Item 3.   Legal Proceedings

          None.

Item 4.   Submission of Matters to a Vote of Security Holders

          None.


















                                       -2-


<PAGE>

                                     PART II

Item 5.   Market for Registrant's Common Equity and Related Stockholder Matters

     The  Certificates  representing  investors'  interests  in  the  Trust  are
represented  by a single  Certificate  which is registered in the name of Cede &
Co., the nominee of the Depository Trust Company ("DTC").

     To the best knowledge of the  Registrant,  there is no  established  public
trading market for the Certificates.

Item 6.   Selected Financial Data

          Not Applicable.

Item 7.   Management's Discussion and Analysis of Financial Condition and
          Results of Operations

          Not Applicable

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

          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

Item 10.  Directors and Executive Officers of the Registrant

          Not Applicable.


Item 11.  Executive Compensation

          Not Applicable.







                                       -3-


<PAGE>



Item 12.  Security Ownership of Certain Beneficial Owners and Management

The Certificates  representing investors' interests in the Trust are represented
by a single  Certificate  which  is  registered  in the name of Cede & Co.,  the
nominee of the Depository Trust Company,  and an investor holding an interest in
the Trust is not entitled to receive a  Certificate  representing  such interest
except in certain limited circumstances. Accordingly, Cede & Co., is the primary
holder  of  record of the  Certificates,  which it held on behalf of 6  brokers,
dealers,  banks and other direct  participants in the DTC system at December 31,
1998. Such direct  participants may hold  Certificates for their own accounts or
for the accounts of their customers.  At December 31, 1998, based on information
furnished to the Originator by DTC, the following direct DTC  participants  held
positions  in  Certificates  representing  interests  in the  Trust  equal to or
exceeding  5% of the total face amount of the  Certificate  outstanding  on that
date:

                                        Aggregate Amount of      Percent of
          Name                           Certificates Held         Class
----------------------------------     --------------------      ----------

Bankers Trust Company                        $13,676,083             7.7%

Chase Manhattan Bank                         $91,347,917            51.3%

Chase Bank of Texas, N.A.                    $20,000,000            11.2%

Citibank, N.A.                               $10,000,000             5.6%

Republic National Bank of New York
  Investment Account                         $25,000,000            14.0%

State Street Bank and Trust Company          $13,000,000             7.3%


The address of each of the above participants is:

            c/o   The Depository Trust Company
                  Issuer Services
                  C/O ADP Proxy Services
                  51 Mercedes Way
                  Edgewood, NY 11717

Item 13.  Certain Relationships and Related Transactions

          None.












                                       -4-



<PAGE>




                                     PART IV

Item 14.  Exhibits, Financial Statement Schedules and Reports on Form 8-K

(a)  The following documents are filed as part of this Report:

     (i)  Annual Report to Certificateholders for the year ended December 31,
          1998.

No proxy soliciting material has been or is expected to be distributed by
the Trust.




































                                       -5-


<PAGE>



                                   SIGNATURES

     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
its behalf by the undersigned, thereunto duly authorized.

                              CAPITOL REVOLVING HOME EQUITY LOAN TRUST 1996-1

                                   By: Chevy Chase Bank, F.S.B.
                                   Originator of the Trust and Servicer



Date: March 31, 1999               By:  Stephen R. Halpin, Jr.
                                        ------------------------
                                        Stephen R. Halpin, Jr.
                                        Executive Vice President and
                                        Chief Financial Officer































                                       -6-


<PAGE>


                                EXHIBIT 14(a)(i)