FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report: February 10, 1998
UNITED MORTGAGE TRUST
a Maryland trust
Commission File IRS Employer Identification
Number 333-10109 No. 75-6496585
1701 N. Greenville Avenue, Suite 403
Richardson TX 75081
(972) 705-9805
UNITED MORTGAGE TRUST
INDEX TO FORM 8-K
Page Number
Item 2. Acquisition or Disposition of
Assets 3
Item. 5. Other Information 3
Signatures 4
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On February 3, 1998, United Mortgage Trust
("the Company") acquired fourteen first lien
mortgage notes with a total unpaid principal
balance of $596,897, for $564,515 of the Gross
Offering Proceeds from the Closing. The notes were
chosen for purchase following the Investment
Objectives and Policies as set forth in the
Declaration of Trust, as amended, dated August 15,
1996, and using the Underwriting Criteria set
forth therein. Eight of the notes were acquired
from South Central Mortgage, Inc., an affiliate of
the Advisor, Mortgage Trust Advisors, Inc. Six
notes were acquired from private individuals:
Herbert Rische, Jack Lawson, Stella Lowry, Earl
Clinton, J.R. Gulledge and Mr. & Mrs. Robert
Kingsbury.
The average first lien mortgage note acquired
has an annual interest rate of 11.36%, has an
unpaid principal balance of $42,635, a term
remaining of 306 months, and a current annual
yield of approximately 11.94%. The notes were
acquired for approximately 94.57% of the
outstanding unpaid principal balance.
The Company paid an Acquisition Fee in the
amount of $17,907 to the Advisor, Mortgage Trust
Advisors, Inc., which represents 3% of the unpaid
principal balance of the first lien notes
acquired.
Funds used in the acquisition of the assets
were offering proceeds from the sale of shares of
the Company from the February 3, 1998 closing.
ITEM 5. OTHER INFORMATION
Status of Offering
Thirteen new shareholders were admitted to
the Trust at the February 3, 1998 closing bringing
the total number of shareholders to from 183 to
196, and the total number of outstanding shares
from 217,741 to 267,317. Gross Offering Proceeds
from the sale of shares was $991,520, making the
total Gross Offering Proceeds from share sales
$5,346,340. Proceeds from the February 3, 1998
closing date were allocated as follows:
$4,958 - to the Selling Group Manager
representing 0.5% (one half of one percent) of
the Gross Offering Proceeds for Due Diligence
Fees.
$99,152 - to the Selling Group Manager
representing 10% (ten percent) of the Gross
Offering Proceeds for Selling Commissions.
$95 - to the Escrow Agent as compensation for
distributing interest accrued to subscribers.
$887,315- to the Company.
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its
behalf by the undersigned hereunto duly
authorized.
UNITED MORTGAGE TRUST
February 10, 1998 /Christine A. Griffin/
Christine A. Griffin
President
