Current Income Shares, Inc.
445 S. Figueroa Street
Los Angeles, California 90071
To the Board of Directors:
We are the auditors of Current Income Shares, Inc. (the "Fund"). The Union
Bank of California, N.A. (the "Bank"), a related entity, is the custodian for
the Fund, and, therefore, the Fund is subject to the provisions of Rule 17f-2
under the Investment Company Act of 1940. Accordingly, we have
accounted for the Fund's investment securities held by the Bank as of the
close of business on May 29, 1998. It is understood that this report is solely
for the use of management and for the information of the Securities and
Exchange Commission and should not be used for any other purpose.
The Bank, in addition to acting as custodian for the Fund, is the custodian
and holder of investment securities of other customers of the Bank. While
the Bank may hold securities in its vaults from time to time, more commonly
agents of the Bank hold, or account for, by book entry, securities which are
the responsibility of the Bank through custodian or trust arrangements.
Securities held by agents of the Bank cannot be identified by such agents as
to the specific customers of the Bank who have securities included in such
deposits.
The Bank confirmed to us that the securities owned by the Fund on
May 29, 1998 were held for the account of the Bank by the Depository
Trust Company, the Federal Reserve Bank and CitiCorp as agents for the
Bank, hereafter referred to as the "Agents". We obtained confirmation
from the Agents of the securities held for the account of the Bank as of
May 29, 1998. We reviewed the Bank's reconciliation of the Agents'
confirmations to the Bank's internal records, identifying securities held by
such Agents as a part of the Bank's aggregate security position with such
Agents. We also reviewed the Bank's internal records which show the Agents
that held the Fund's securities for the account of the Bank at May 29, 1998.
We determined that securities, identified by such records as the property of
the Fund, were in agreement with the Fund's record of securities owned at
May 29, 1998.
Because the above procedures were not sufficient to constitute an audit
made in accordance with generally accepted auditing standards, we do
not express an opinion on the investment accounts referred to above. Had
we performed additional procedures in accordance with generally accepted
auditing standards, matters might have come to our attention that would
have been reported to you.
October 12, 1998
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-17f-2
Certificate of Accounting of Securities and Similar
Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
1. Investment Company Act File Number:
811-02357
Date examination completed:
May 29, 1998
2. State identification Number:
AL
AK
AZ
AR
CA
CO
CT
DE
DC
FL
GA
HI
ID
IL
IN
IA
KS
KY
LA
ME
MD
MA
MI
MN
MS
MO
MT
NE
NV
NH
NJ
NM
NY
NC
ND
OH
OK
OR
PA
RI
SC
SD
TN
TX
UT
VT
VA
WA
WV
WI
WY
PUERTO RICO
Other (specify):
3. Exact name of investment company as specified in registration
statement:
Current Income Shares, Inc.
4. Address of principal executive officer (number, street, city, state, zip
code)
445 South Figueroa Street, Los Angeles, California 90071
INSTRUCTIONS
This Form must be completed by investment companies that have custody
of securities or similar investments.
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in
compliance with Rule 17f-2 under the Act and applicable state law,
examines securities and similar investments in the custody of the
investment company.
Accountant
3. Submit this Form to the Securities and Exchange Commission and
appropriate state securities administrators when filing the certificate of
accounting required by Rule 17f-2 under the Act and applicable state law.
File the original and one copy with the Securities and Exchange Commission's
principal office in Washington, D.C., one copy with the regional office for the
region in which the investment company's principal business operations are
conducted, and one copy with the appropriate state administrator(s), if
applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
