YEARLY CERTIFICATEHOLDERS' STATEMENT (K)

                CAPITOL REVOLVING HOME EQUITY LOAN TRUST 1996-1


          Under subsection  5.3(b) of the Pooling and Servicing  Agreement dated
     as of  September  1,  1996 by and  between  Chevy  Chase  Bank,  F.S.B.,  a
     federally chartered savings bank, as Transferor and Servicer, and The Chase
     Manhattan  Bank,  as  Trustee  and  Custodial  Agent  (hereinafter  as such
     agreement may have been, or may from time to time be, amended, supplemented
     or otherwise modified, the "Pooling and Servicing Agreement"),  Chevy Chase
     Bank, F.S.B., as the Servicer,  is required to prepare certain  information
     each month regarding  current  distributions  on the  Certificates  and the
     performance  of the Capitol  Revolving Home Loan Trust 1996-1 (the "Trust")
     during the related  Collection  Period. The information that is required to
     be   prepared   with   respect  to  the   distribution   to  Holders   (the
     "Certificateholders")  of the  Certificates  for the  calendar  year  ended
     December  31,  1996 is set  forth  below.  Certain  of the  information  is
     presented  on the basis of an  original  principal  amount  of  $1,000  per
     Certificate,  as the case may be.  Capitalized terms used and not otherwise
     defined herein have the meanings assigned them in the Pooling and Servicing
     Agreement.

     A.   Information Regarding the Current Year
          Distribution to Certificateholders
          (Per $1,000 Original Principal Amount of a
          Certificate).

          1.   The Investor Certificate distribution amount......$48.3736

          2.   The amount of Investor Certificate Interest
               included in such distribution and the portion
               thereof attributable to collections in
               respect of the Mortgage Loans.....................$18.7121
               ..................................................$18.7121

          3.   The amount, if any, of any Unpaid Investor
               Certificate Interest Shortfall included in
               such distribution (and the amount of interest
               theron)...........................................$0.00
               ..................................................$0.00

          4.   The amount, if any, of the remaining Unpaid
               Investor Certificate Interest Shortfall
               giving effect to such distribution................$0.00

          5.   The amount, if any, of principal included in
               such distribution, Separately stating the
               components thereof (including the portion
               thereof attributable to collections in respect of
               the Mortgage Loans)...............................$29.6615

          6.   The amount, if any, of the reimbursement of
               previous Investor Loss Reduction Amount
               included in such distribution......................$0.00
                                     
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          7.   The Accelerated Principal Distribution
               Amount, if any.....................................$4.0328

          8.   The amount, if any, of the aggregate
               unreimbursed Investor Loss Reduction
               Amounts aftergiving effect to such distribution...$0.00

          9.   The Certificate Insurance Draw Amount, if
               any...............................................$0.00



          IN WITNESS WHEREOF,  the undersigned has caused this Certificate to be
     duly executed this 25th day of January, 1997.

                                   CHEVY CHASE BANK, F.S.B.
                                   as Servicer



                                       By:   John N. Sousane
                                            _____________________________
                                             John N. Sousane
                                             Vice President











                                    
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