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001 A000000 LENED, INC.
001 B000000 811-03273
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002 A000000 15 W 53RD STREET C/O JOSEPH FLUSFEDER
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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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SIGNATURE MR JOSEPH FLUSFEDER
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM YEAR ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCAIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1996<F1>
<PERIOD-START> OCT-01-1995
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 1729006<F2>
<INVESTMENTS-AT-VALUE> 1786084<F3>
<RECEIVABLES> 0
<ASSETS-OTHER> 82901<F4>
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1869888
<PAYABLE-FOR-SECURITIES> 92531<F5>
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 11641
<TOTAL-LIABILITIES> 104172
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 167232<F6>
<SHARES-COMMON-STOCK> 18960
<SHARES-COMMON-PRIOR> 18960
<ACCUMULATED-NII-CURRENT> (7930)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (29282)
<NET-ASSETS> 1765716
<DIVIDEND-INCOME> 3574
<INTEREST-INCOME> 108481
<OTHER-INCOME> 0
<EXPENSES-NET> 18588
<NET-INVESTMENT-INCOME> 93467
<REALIZED-GAINS-CURRENT> (8695)
<APPREC-INCREASE-CURRENT> (19188)
<NET-CHANGE-FROM-OPS> 65413
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 92531
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (27118)
<ACCUMULATED-NII-PRIOR> (7930)
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 18588
<AVERAGE-NET-ASSETS> 1823658
<PER-SHARE-NAV-BEGIN> 94.56
<PER-SHARE-NII> 4.93
<PER-SHARE-GAIN-APPREC> (1.48)
<PER-SHARE-DIVIDEND> 4.88
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 93.13
<EXPENSE-RATIO> .061
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<FN>
<F1>Notes to Financial Statements for the year ended September 30, 1996
are incorporated herein by reference.
<F2>Investment at cost included amortized cost
<F3>Investment at value includes accrued interest receivable.
<F4>Assets Other includes Receivables and Other Items Assets
<F5>Payable for Securities includes Dividends Payable
<F6>Paid in Capital Common includes Common Stock and Paid in Capital
</FN>
</TABLE>
STUART M. FRIED, CPA
LENED, INC.
REPORT TO STOCKHOLDERS
FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 1996 AND 1995
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
REPORT TO STOCKHOLDERS
FINANCIAL STATEMENTS
TABLE OF CONTENTS
YEARS ENDED SEPTEMBER 30, 1996 AND 1995
PAGE
INDEPENDENT AUDITOR'S REPORT 1
STATEMENTS OF ASSETS, LIABILITIES AND
CAPITAL SECURITIES 2
STATEMENTS OF OPERATIONS, UNDISTRIBUTED NET
INCOME (LOSS) 3
STATEMENTS OF CHANGES IN NET ASSETS 4
STATEMENTS OF CASH FLOWS 5
NOTES TO FINANCIAL STATEMENTS 6-15
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and
Stockholders of Lened, Inc.
c/o Joseph Flusfeder
15 West 53rd Street
New York, New York
We have audited the accompanying statements of assets, liabilities and
capital securities of Lened, Inc. (a New Jersey Corporation), as of
September 30, 1996 and 1995, and the related statements of operations,
undistributed net income (loss) and statements of changes in net assets,
and cash flows for the years then ended. These financial statements are
the responsibility of the Company's management. Our responsibility is
to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. The investment securities held in custody were
confirmed to us by the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Lened, Inc.
as of September 30, 1996 and 199, and the results of its operations and
its cash flows for the years then ended in conformity with generally
accepted accounting principles.
STUART M. FRIED, CPA
West Caldwell, New Jersey
November 10, 1996
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
STATEMENTS OF ASSETS, LIABILITIES
AND CAPITAL SECURITIES
<TABLE>
<CAPTION>
ASSETS
SEPTEMBER 30,
-----------------------
1996 1995
---------- ----------
<S> <C> <C>
INVESTMENT IN MUNICIPAL BONDS,
with accrued interest - at fair market
value (amortized cost $1,729,006 and
$1,666,269) (Note 1) $1,786,084 $1,737,398
Cash 903 743
Investment in Vista New York Tax-Free
Money Market Fund (2.95% avg. Interest rate) 81,608 171,775
Prepaid expenses 1,293 1,797
---------- ----------
$1,869,888 $1,911,713
========== ==========
LIABILITIES AND CAPITAL SECURITIES
LIABILITIES:
Dividends payable $ 92,531 $ 110,724
Other current liabilities 11,641 8,155
---------- ----------
104,172 118,879
---------- ----------
NET ASSETS APPLICABLE TO OUTSTANDING CAPITAL SHARES:
CAPITAL SHARES
Common stock, no par value, 25,200 shares
authorized, 18,960 issued and outstanding $ 22,500 22,500
Paid in capital 144,732 144,732
Retained earnings 1,577,132 1,607,818
Undistributed net income (loss) (7,930) (30,686)
Unrealized appreciation of investments 29,282 48,470
---------- ----------
Total stockholders' equity (equivalent to
$93.13 per share at 9/30/96 and $94.56
per share at 9/30/95) 1,765,716 1,792,834
---------- ----------
$1,869,888 $1,911,713
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial
statements.
-2-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
STATEMENTS OF OPERATIONS,
UNDISTRIBUTED NET INCOME (LOSS)
<TABLE>
<CAPTION>
YEARS ENDED SEPTEMBER 30,
-------------------------
1996 1995
---------- ----------
<S> <C> <C>
INVESTMENT INCOME:
INCOME
Interest income on tax free municipals $ 108,481 $ 129,530
Dividend income - tax free 3,574 7
---------- ----------
112,055 129,537
EXPENSES:
Custodial fees (Note 4) 2,293 2,636
Audit fees 2,400 2,400
Legal fees 3,000 1,425
Taxes other than income taxes 250 365
Office expense 8,466 8,619
Insurance 1,929 2,000
Filing fees 250 250
---------- ----------
18,588 17,695
---------- ----------
INVESTMENT INCOME 93,467 111,842
Net realized gain (loss) from investment transactions (8,695) (31,804)
---------- ----------
INVESTMENT INCOME BEFORE FEDERAL
INCOME TAX 84,772 80,038
Less: Federal income taxes 171 0
---------- ----------
NET INVESTMENT INCOME 84,601 80,038
Less: Dividends paid 92,531 110,724
---------- ----------
UNDISTRIBUTED NET INCOME (LOSS) $ (7,930) $ (30,686)
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial
statements.
-3-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEARS ENDED SEPTEMBER 30,
-------------------------
1996 1995
---------- ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Investment income - net $ 93,296 $ 111,842
Net realized gain (loss) on investments (8,695) (31,804)
Change in unrealized appreciation (depreciation) (19,188) 21,890
---------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 65,413 101,928
DISTRIBUTION TO SHAREHOLDERS FROM
NET INVESTMENT INCOME 92,531 110,724
---------- ----------
TOTAL INCREASE (DECREASE) (27,118) (8,796)
NET ASSETS BEGINNING OF PERIOD 1,792,834 1,801,630
---------- ----------
NET ASSETS END OF PERIOD (Including
Undistributed Net Income of $(7,930) and
$(30,686), respectively) $1,765,716 $1,792,834
========== ==========
DIVIDENDS PER SHARE $ 4.88 $ 5.84
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial
statements.
-4-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
STATEMENT OF CASH FLOWS
INCREASE (DECREASE) IN CASH
<TABLE>
<CAPTION>
YEARS ENDED SEPTEMBER 30,
-------------------------
1996 1995
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 84,601 $ 80,038
Adjustments to reconcile net income to net
cash provided by operating activities:
Changes in assets and liabilities:
(Increase) Decrease in municipal bonds with
accrued interest at fair market value (48,686) 47,379
(Increase) Decrease in Vista New York
Tax Free Money Market Fund 90,167 (32,940)
(Increase) Decrease in prepaid expenses 504 55
Increase (Decrease) in other current liabilities 3,486 2,224
Realized (gain) loss from investment transactions
included in net income 8,695 31,804
---------- ----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 138,767 128,560
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase (Decrease) in unrealized appreciation (19,188) 21,890
of investments
Realized gain (loss) from investment transactions (8,695) (31,804)
---------- ----------
NET CASH (USED) PROVIDED BY INVESTING
ACTIVITIES (27,883) (9,914)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid (110,724) (122,918)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND 160 (4,272)
CASH EQUIVALENTS
CASH - BEGINNING OF YEAR 743 5,015
---------- ----------
CASH - END OF YEAR $ 903 $ 743
========== ==========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for:
Income taxes $ 250 $ 240
</TABLE>
The accompanying notes are an integral part of these financial
statements.
-5-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Lened, Inc. was incorporated in New Jersey on January 31, 1957. Lened,
Inc. commenced operations as an investment company investing at least
50% of the value of its total assets, determined at the close of each
quarter of its taxable year, in tax-exempt state and local obligations,
may distribute, as a tax-exempt dividend, to its shareholders an amount
equal to the interest earned on such tax-exempt obligations, provided it
designates such dividends as tax-exempt interest dividends. It is the
Company's intention to invest substantially all of its assets, except
such amounts as it may carry in demand deposits, in such tax-exempt
obligations and to distribute all of its net income, including any net
short-term capital gains, to its shareholders.
The Company is registered under the Investment Company Act of 1940, as
amended, as a diversified, closed-end investment company.
The following is a summary of significant accounting policies followed
by the Company in the preparation of its financial statements:
(a) Investments are valued by the Custodian. These values may not
necessarily be bids or actual last sale prices, but are
estimates of the fair value of the investment securities, based
upon prevailing interest rates, applicable bond ratings and
other factors influencing the markets in which the investments
are purchased and sold.
(b) It is the policy of the Company to continue to qualify as a
regulated investment company if such qualifications are in the
best interests of its shareholders, by complying with the
provisions available under the Internal Revenue Code, and to
make distributions of taxable income sufficient to relieve it
from all, or substantially all, Federal income taxes.
Therefore, unless the Company has capital gains or interest on
Treasury Bills, no federal tax provision is required.
-6-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(c) Realized gains and losses on investments are computed on the
basis of the identified cost of the specific securities sold.
(d) Securities transactions are recorded on the date the securities
are purchased or sold (the trade date). Interest income (net of
premium or discount amortization) is recorded as earned.
(e) Unrealized Appreciation (Depreciation) of Investments is stated
as the difference between amortized cost and fair market value.
At September 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Unrealized Appreciation of Bonds totaled $30,483
Unrealized Depreciation of Bonds totaled (1,201)
-------
Net Unrealized Appreciation of Investments $29,282
=======
</TABLE>
NOTE 2 - PURCHASES, SALES AND REDEMPTIONS OF SECURITIES
Securities exclusive of Vista New York Tax Free Money Market Fund
purchased by the Company amounted to $520,000 for the year ended
September 30, 1996 and $400,282 for the year ended September 30, 1995.
Sales of securities exclusive of Vista New York Tax Free Money Market
Fund amounted to $465,000 for the year ended September 30, 1996 and
$465,405 for the year ended September 30, 1995.
NOTE 3 - DISTRIBUTIONS
The Company distributed income of $92,531 ($4.88 per share) and $110,724
($5.84 per share) for the years ended September 30, 1996 and 1995 in
the form of dividends.
NOTE 4 - CUSTODIAL FEES
Pursuant to an agreement with the custodian, the custodial fee is based
on the number of bond coupons redeemed based on an annual charge of
$1.25 per $1,000 of the first $500,000, $.75 per $1,000 of the next
$500,000 face value of bonds and $.50 per $1,000 face value above
$1,000,000. A charge of $15 is made for each security transaction.
During the years ended September 30, 1996 and 1995, the Company was
charged an aggregate of $2,293 and $2,636 respectively.
NOTE 5 - REMUNERATION
The Company's policy is not to pay, and for the periods reported did not
pay, remuneration to either officers or directors.
-7-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
NOTE 6 - CONTINGENT LIABILITIES AND EVENTS
Lened International Corp., a subsidiary of Lened, Inc. ceased its
activities as a Domestic International Sales Corporation. Untaxed income
of the subsidiary originally in an amount in excess of $600,000 was
taxable to Lened, Inc., the parent, over an eight year period. No
liability is or was provided on the balance sheet, under Subchapter M of
the Internal Revenue Code, which stipulates that this type of
distribution to the shareholders of a regulated investment company is
taxable directly to the shareholders.
The Internal Revenue Service has not examined income tax returns for all
open years.
-8-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
NOTE 7 - CAPITAL PER SHARE AND RELATED INFORMATION
Selected data for a share of capital stock outstanding throughout the
period:
<TABLE>
<CAPTION>
YEARS ENDED SEPTEMBER 30,
-------------------------
1996 1995
---------- ----------
<S> <C> <C>
Investment income $ 5.91 $ 6.83
Operating expenses .98 .93
---------- ----------
INVESTMENT INCOME BEFORE FEDERAL 4.93 5.90
INCOME TAX
FEDERAL INCOME TAX 0 0
---------- ----------
INVESTMENT INCOME - NET 4.93 5.90
Dividends to shareholders 4.88 5.84
---------- ----------
.05 .06
Realized and unrealized gain (loss)
on investments - net (1.48) (.52)
---------- ----------
CHANGE IN NET VALUE (1.43) (.46)
NET ASSET VALUE:
Beginning of period 94.56 95.02
---------- ----------
End of period $ 93.13 $ 94.56
========== ==========
Ratio of operating expenses to
average net assets .0102% .0096%
Ratio of investment income net to
average net assets .0614% .0704%
Portfolio turnover 26.74% 24%
Number of shares outstanding at end
of period 18,960 18,960
</TABLE>
-9-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
NOTE 8 - INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS
<TABLE>
<CAPTION>
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- -----------
<S> <C> <C> <C>
Cusip #010014AS7
Akron Central School Dist, N.Y.
A General Obligation (FSA)
5.4% Due 6/1/2001 $ 50,000 $ 51,845 $ 52,645
Cusip #010014AT5
Akron Central School District, N.Y.
A General Obligation (FSA)
5.4% Due 6/1/2002 175,000 181,453 184,525
Cusip #23354NAG8
Dade County FLA Res Recovery
FAC 5.0% Due 10/1/03
REFC (AMBAL) Rev 100,000 99,418 100,525
Cusip #246006GU8
Delaware County Authority,
P.A. Hospital Revenue
(Mercy Catholic Med Ctr-Ser B)
7.25% Due 11/1/2002-97NC 60,000 59,847 64,613
Cusip #254764CN1
District of Columbia Hospital
Refunding & Impt Revenue
(Childrens Hosp-A) (Insd By FGIC)
5.8% Due 7/15/2001-NC 100,000 100,409 104,898
Cusip #254760YL9
District of Columbia A General
Obligation Series A (RFDG)
5.625% Due 6/1/2002 50,000 50,197 50,994
-10-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- -----------
Cusip #2547620M2
District Columbia G/O
5.625% Due 6/1/02
Ref- Ser A- (FSA- CR) 100,000 103,021 104,820
Cusip #2547603MI
District of Columbia A General
Obligation (Series A) 6%
Due 6/1/2009 50,000 51,690 52,045
Cusip #386442LV7
Grand River Dam Authority, Okal.
Refunding Revenue
Prerefunded 6-1-97 @ 102.
7% Due 6/1/2006-97NC 25,000 24,944 26,597
Cusip #396080ED1
Greenville Hospital System Board of
Trustees, S.C. Hospital Facilities
Revenue Series B
4.9% Due 5/1/2005-98 NC 95,000 95,003 95,968
Cusip #451295HW2
Idaho Health Facilities Authority
Refunding Revenue
(Bannock Regl Med Ctr Proj)
7.6% Due 5/1/2003 20,000 20,109 21,563
Cusip #462590BF6
Iowa Student Loan Liquidity Corp.
Student
Loan Revenue (Insured by Ambac)
6.6% Due 12/1/2000 90,000 94,239 97,610
Cusip #544738AJ6
Los Angeles County Public Works
Fing Auth., Calif. Refunding
Revenue (Capital Construction)
4.6% Due 3/1/2002 100,000 98,186 99,275
-11-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- -----------
Cusip #561842FQ3
Manatee County Housing Finance
Auth. Fla. Single Family Mortgage
Revenue (1985 Ser A) (Insd By FGIC)
9.125% Due 6/1/2016 5,000 5,052 5,209
Cusip #626190RU8
Municipal Assistance Corp., N.Y.
Series #60 Callable
7% Due 7/1/2006-97NC 20,000 19,628 21,125
Cusip #639672NH3
Nebraska Investment Finance
Authority, Neb. Single Family
Mortgage Revenue (Insured by FGIC)
7.7% Due 7/15/2000 10,000 9,981 10,393
Cusip #639683J51
Nebraska Public Power
District, NEB Refunding
Power Supply System - Series
4.5% Due 1/1/2000 70,000 68,215 70,720
Cusip #645793UF5
New Jersey Health Care Facilities
Financing Authority Revenue
(Kennedy Med-Univ Med Ctr-Ser D)
7.875% Due 7/1/2009-98NC 20,000 19,938 21,667
Cusip #645905PE4
New Jersey Economic
Dev Auth Rev
5.4% Due 2/1/06
Call Preddie Sch Proj
Ser-A 60,000 60,907 61,041
Cusip #649652UT9
New York City, N.Y.
A General Obligation
Series A
7.0% Due 8/1/2004-8/1/97NC 20,000 19,329 20,970
Cusip #649649XT2
New York City, N.Y.
A General Obligation
Series B
7.2% Due 2/1/1998-NC 50,000 49,973 52,360
-12-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- -----------
Cusip #649650VY1
New York City, N.Y.
A General Obligation
(Series H)
6.8% Due 2/1/2000-NC 35,000 35,010 37,308
Cusip #649655DH7
New York City, N.Y.
A General Obligation
8% Due 8/1/2010-98NC 20,000 20,002 21,880
Cusip #6496644M8
New York City, G/O
SER-A
5.7% Due 8/1/02 40,000 40,000 40,771
Cusip #649652US1
New York City, N.Y.
A General Obligation
(Prerefunded 8/1/97 @101.50)
7% Due 8/1/2004 - 8/1/97NC 5,000 4,960 5,256
Cusip #649831VJ0
New York State Dormitory Authority
City University System Consolidated
Revenue
Series A 8% Due 7/1/2007-97NC 55,000 55,225 58,891
-13-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
Principal Amortized Fair Market*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- -----------
Cusip #649900AJ6
New York State Environmental
Facilities Corp., N.Y. Resource
Recovery Revenue (Huntington Proj)
7.5% Due 10/1/2012-99NC 50,000 50,000 54,717
Cusip #649858WM5
New York State Housing
Finance Agency
Non Profit Housing Project
6.5% Due 11/1/1999 25,000 24,841 26,210
Cusip #649860E41
New York State Housing Finance Agency
Hospital & Nursing Home Project
6.875% Due 11/1/2007-97NC 5,000 4,905 5,253
Cusip #649868NJ1
New York State Housing Finance Agency
Housing Help Revenue
7.7% Due 11/1/1997-NC 20,000 20,298 20,939
Cusip #6498814H9
New York State Medical Care Facilities
Finance Agency Revenue
7% Due 8/15/1998-NC 40,000 40,439 42,185
-14-
<PAGE>
STUART M. FRIED, CPA
LENED, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
Principal Amortized FairMarket*
Name and Title of Issuer Amount Cost Value
- ------------------------ --------- --------- -----------
Cusip #882585AD4
Texas National Research Laboratory
Commission Financing Corp.
Lease Revenue
(Supercond Super Coll PJ)
6% Due 12/1/1998-NC 75,000 74,942 79,312
Cusip #896559BL4
Trinity River Auth., Texas Big Bear
Creek Interceptor RFDG Revenue
(Waste Water Sys Cont) (MBIA)
4.5% Due 2/1/2003 75,000 75,000 73,799
---------- ---------- ---------
TOTAL INVESTMENT - 100.00% $1,715,000 $1,729,006 1,786,084
========== ==========
OTHER ASSETS LESS LIABILITIES - (.01%) (20,368)
----------
NET ASSETS - 100% $1,765,716
==========
NET ASSET VALUE PER SHARE $ 93.13
==========
OUTSTANDING SHARES AT SEPTEMBER 30, 1996 18,960
==========
</TABLE>
* Includes accrued interest
-15-
