FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report: March 27, 1998
UNITED MORTGAGE TRUST
a Maryland trust
Commission File IRS Employer ID
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
During March, 1998, United Mortgage Trust ("the
Company") acquired seventeen first lien mortgage notes with
a total unpaid principal balance of $714,943, for $673,442
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. Fourteen of the notes were
acquired from South Central Mortgage, Inc., an affiliate of
the Advisor, Mortgage Trust Advisors, Inc. Three notes were
acquired from private individuals: Larry D. Thigpen, Frances
L. Nivens, and The John & Emma Letson Trust.
The average first lien mortgage note acquired has an
annual interest rate of 11.56%, has an unpaid principal
balance of $42,055, a term remaining of 351 months, and a
current annual yield of approximately 12.27%. The notes were
acquired for approximately 93.84% of the outstanding unpaid
principal balance.
The Company paid an Acquisition Fee in the amount of
$21,448 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 March 2 and March 16, 1998 closings.
Item 5. Other Information
Status of Offering
Thirty-five new shareholders were admitted to the Trust
during March, 1998 increasing the total number of
shareholders to 196 to 231, and the total number of
outstanding shares from 267,317 to 327,694. Gross Offering
Proceeds from the sale of shares was $1,207,540, making the
total Gross Offering Proceeds from share sales $6,553,880.
Proceeds from the March, 1998 closings were allocated as
follows:
a. $6,038 - to the Selling Group Manager representing 0.5%
(one half of one percent) of the Gross Offering Proceeds for
Due Diligence Fees.
b. $120,754 - to the Selling Group Manager representing 10%
(ten percent) of the Gross Offering Proceeds for Selling
Commissions.
c. $145 - to the Escrow Agent as compensation for
distributing interest accrued to subscribers.
d. $1,080,603 - 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
March 27, 1998 /S/Christine A. Griffin
Christine A. Griffin
President
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