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  year   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,  1997 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............$222.27

     2.  The amount of Investor Certificate Interest  included in
         such distribution, the related Investor Certificate
         Rate and the portion
         thereof attributable to collections in
         respect of the Mortgage Loans...........................$52.4118
         ........................................................$52.4118


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

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

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     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).....................................$154.32

     6.  The amount, if any, of the reimbursement of
         previous Investor Loss Reduction Amount
         included such distribution..............................$0.00

     7.  The Accelerated Principal Distribution
         Amount, if any..........................................$15.54

     8.  The amount, if any, of the aggregate
         unreimbursed Investor Loss Reduction
         Amounts after giving 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 20th day of March, 1998

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



                                             By:  Carol Thomas
                                                _____________________________
                                                  Carol Thomas
                                                  Vice President