PROSPECTUS
METROPOLITAN MORTGAGE & SECURITIES CO., INC.
$100,000,000 Investment Debentures, Series III
You should consider carefully the risk factors beginning on page 8 in
this prospectus.
The Debentures are obligations of our company and they are not insured
or guaranteed by any governmental agency, any insurance company, any
affiliate of our company or any other person or entity.
Metropolitan is offering Debentures with the following terms:
The Debentures are unsecured debt instruments, senior only to
outstanding equity securities of Metropolitan.
The Debentures rank equally with unsecured debt of Metropolitan and are
subordinate to all other debt of Metropolitan.
<TABLE>
<CAPTION>
MINIMUM INVESTMENT TERM TO MATURITY ANNUAL INTERST RATE
------------------ ---------------- -------------------
<S> <C> <C>
$100 120 MONTHS 8.250%
$100 96 to 119 MONTHS 8.000%
$100 72 to 95 MONTHS 7.750%
$100 60 to 71 MONTHS 7.500%
$100 48 to 59 MONTHS 6.750%
$100 36 to 47 MONTHS 6.500%
$100 24 to 35 MONTHS 6.250%
$100 12 TO 23 MONTHS 6.000%
$250,000 120 MONTHS 8.750%
$250,000 96 to 119 MONTHS 8.625%
$250,000 72 to 95 MONTHS 8.500%
$250,000 60 to 71 MONTHS 8.375%
Installment Payment
Option
$2,000 60 to 120 MONTHS 6.250%
</TABLE>
(1) You may elect one of three options to receive principal and
interest payments on the Debentures: (a) to receive interest monthly,
quarterly, semi-annually or annually, without compounding, (b) to leave
the interest with Metropolitan and it will compound semi-annually, or
(c) at the above identified installment terms, equal monthly
installments of principal and interest in accordance with an
amortization schedule that you select.
<TABLE>
<CAPTION>
Per Debenture Total
----------------- ------
<S> <C> <C>
Public Offering Price 100% $100,000,000
Underwriting Discounts 0% to 6% None - $6,000,000
and Commissions (1)
Proceeds, before 100% to 94% $100,000,000 -
expenses, to Issuer or $94,000,000
Other Persons
</TABLE>
(1) You will no incur a direct sales charge. Debentures earn
interest, without deduction for underwriting discounts or commissions.
We will reimburse our underwriters for commissions paid to licensed
securities sales representatives. Sales commission rates on the sale of
Debentures depend upon the terms of the sale and upon whether the sales
are reinvestments or new purchases. See "PLAN OF DISTRIBUTION."
. Currently, there is no trading market for the Debentures and you
should not expect one to be established in the future.
. The Debentures are being issued only in book-entry form.
. This offering of Debentures is subject to withdrawal or cancellation
by Metropolitan without notice.
. We are offering the Debentures on a continuous, best efforts basis.
. There is no minimum amount of Debentures that must be sold.
. You may not purchase Debentures pursuant to this prospectus after
January 31, 2000.
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these securities or
passed upon the adequacy or accuracy of the prospectus. Any
representation to the contrary is a criminal offense.
METROPOLITAN INVESTMENT SECURITIES, INC.
The date of this prospectus is February 9, 1999
