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, 1996

___  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 33-54426

               CAPITOL HOME EQUITY LOAN TRUST 1990-1

  (Issuer in respect of the Capitol Home Equity Loan Asset Backed Certificates,
                     Series 1990-1, Class A and Class B 
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           (Exact name of registrant as specified in its charter)

           Maryland                                         52-1714779
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     (State or other jurisdiction of                     (I.R.S Employer
      incorporation or organization)                   (Identification No.)

        8401 Connecticut Avenue
        Chevy Chase, Maryland                                  2081

     (Address of principal executive offices)                (Zip Code)
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     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:

                   Capitol Home Equity Loan Asset
            Backed Certificates, Series 1990-1, Class B

          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 December 1, 1990, by and between the Originator and Chemical Bank, as
     trustee,  providing  for the issuance of the Capitol Home Equity Loan Asset
     Backed   Certificates,   Series   1990-1,   Class   A  and   Class  B  (the
     "Certificates"),  and is the  originator  of the  Capitol  Home Equity Loan
     Trust  1990-1  (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.


















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<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 two  Certificates  for Class B, one of which is registered in
   the name of Cede & Co., the nominee of the  Depository  Trust Company and the
   other Class B Certificate  in the  principal  amount of $533 is registered in
   the name of Merrill Lynch, Pierce, Fenner & Smith.

      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 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.





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<PAGE>


   Item 12.Security Ownership of Certain Beneficial Owners and Management

      The  Certificates  representing  investors'  interests  in the  Trust  are
   represented  by two  Certificates  for Class B, one of which is registered in
   the name of Cede & Co., the nominee of the Depository  Trust Company ("DTC"),
   and  the  other  Class  B  Certificate  in the  principal  amount  of $533 is
   registered in the name of Merrill Lynch, Pierce,  Fenner & Smith. 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  Certificates,
   which it held on  behalf  of 8  brokers,  dealers,  banks  and  other  direct
   participants in the DTC system at December 31, 1996. Such direct participants
   may hold  Certificates  for their own  accounts or for the  accounts of their
   customers.  At December  31,  1996,  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 Class B Certificates outstanding on that date:

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

   Bank of New York ............................   $15,000,000          17.9%

   Bankers Trust Co. ...........................   $10,000,000          11.9%

   Brown Brothers Harriman & Company ...........   $25,000,000          29.8%

   Chase Manhattan Bank, N.A ...................   $13,000,000          15.5%

   Merrill Lynch, Pierce, ......................   $15,008,000          17.9%
     Fenner & Smith Safekeeping

   The address of each of the above participants is:

      c/o The Depository Trust Company
          55 Water Street
          New York, NY 10041

   Item 13. Certain Relationships and Related Transactions

            None.










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<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)  Management's  Report  dated  December 20, 1996, together with
                Annual Accountant's Report.

           (ii) Annual Report to Certificateholders for the year
                ended December 31, 1996.

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




































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                             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 HOME EQUITY LOAN TRUST 1990-1

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



   Date: March 24, 1997         By: Stephen R. Halpin
                                    _______________________________
                                    Stephen R. Halpin, Jr.
                                    Executive Vice President and
                                    Chief Financial Officer































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                                EXHIBIT 14(a)(i)
















































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<PAGE>

                                EXHIBIT 14(a)(ii)

















































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