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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) September
26, 1997
Metropolitan Mortgage & Securities Co., Inc.
(Exact name of registrant as specified in its charter)
Washington 333-335 91-06069840
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification
incorporation) Number)
W. 929 Sprague Avenue, Spokane, WA 99204
(Address of principal executive offices)
Registrant's telephone number, including area code (509) 838-
3111
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Item 5. Other Events.
On September 26, 1997, Metropolitan Mortgage & Securities
Co., Inc. ("Metropolitan") and its wholly owned subsidiary,
Western United Life Assurance Company ("Western"), sold
approximately $143.75 million in first lien mortgage loans
secured by, and contracts for the sale of real property
relating to, residential, multi-family and commercial
properties (the "Mortgage Loans"). Such sale was made in
connection with the issuance of approximately $152.08
million of mortgage pass-through certificates (the
"Certificates"), of which $146.76 million were sold in a
private offering. In connection with the sale, Metropolitan
received cash and approximately $5.32 million in
Certificates resulting in an after tax profit of
approximately $5.5 million.
Summit Securities, Inc. ("Summit") and its wholly owned
subsidiaries, Old Standard Life Insurance Company ("Old
Standard")and Arizona Life Insurance Company ("Arizona
Life"), also participated in the offering by selling
approximately $8.33 million of Mortgage Loans. Summit and
Old Standard are under common control with Metropolitan.
The Mortgage Loans were sold to Metropolitan Asset Funding,
Inc. II ("MAFI II") which in turn sold the Mortgage Loans to
the trust created pursuant to the Pooling and Servicing
Agreement (the "Agreement"), dated as of September 1, 1997,
among MAFI II, as depositor, Metropolitan, Western, Summit,
Old Standard and Arizona Life, as sellers of the Mortgage
Loans, Metwest Mortgage Services, Inc. ("Metwest"), as the
master servicer, and The Bank of New York, as trustee.
Pursuant to the Agreement, Metwest, a wholly owned
subsidiary of Metropolitan, will continue to service the
Mortgage Loans for which it will receive a fee.
On September 29, 1997, (the "Closing Date") Metropolitan
sold approximately $27.66 million in first lien, fixed rate
installment loans secured by timeshare unit intervals at the
Lawai Beach Resort located in Kauai, Hawaii (the "Timeshare
Loans"). Such sale was made in connection with the issuance
of approximately $29.66 million of fixed-rate timeshare
mortgage certificates (the "Certificates"), of which $27.87
million were sold in a private offering. In addition, on
the Closing Date, $2 million was deposited into a separate
pre-funding account which will be used to purchase, from
Metropolitan, up to $2 million additional Timeshare Loans
during the pre-funding period which ends 90 days after the
Closing Date. Any amounts on deposit in the pre-funding
account as of the last day of the pre-funding period will be
used to repay the Certificates pro rata. In connection with
the sale, Metropolitan received cash and approximately $1.79
million in Certificates resulting in an after tax profit of
approximately $1.0 million.
The Mortgage Loans were sold to MAFI II which in turn sold
the Timeshare Loans to the trust created pursuant to the
Pooling and Servicing Agreement (the "Agreement"), dated as
of August 1, 1997 among MAFI II, as depositor, Metropolitan,
as seller of the Timeshare Loans, Metwest Mortgage Services,
Inc. ("Metwest"), as the master servicer, and the Bank of
New York, as trustee. Pursuant to the Agreement, Metwest
will continue to service the Timeshare Loans for which it
will receive a fee.
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SIGNATURES
Pursuant to the requirements of the Securities and
Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned
hereunto duly authorized.
Dated: October 30, 1997
METROPOLITAN MORTGAGE & SECURITIES CO., INC.
/S/ BRUCE BLOHOWIAK
BY: BRUCE BLOHOWIAK, Vice President
