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): October 1, 1996
MUTUAL BENEFIT MORTGAGE INVESTORS 1985
Exact Name of Registrant
Rhode Island 0-14501
State or other jurisdiction of Commission File Number
organization
520 Broad Street
Newark, New Jersey 07102 05-0417572
Address of principal executive IRS Employer I.D. Number
offices
Registrant's telephone number: (201) 481-7813
Item 2. Acquisition or Disposition of Assets.
On October 1, 1996 the Registrant concluded the sale of its
mortgage loan participation in the Radnor Loan owned by MBL Life
Assurance Corporation. The participation was sold to M.G. St.
David, LLC for a total price of approximately $1,213,000.00
(being a per unit amount of more than $52, far in excess of the
amount previously approved by limited partners to authorize the
sale).
The Registrant will now be dissolved. Upon dissolution the
Registrant will distribute to partners the net proceeds of the
sale of the Radnor Loan participation, plus all other assets of
the Registrant, less amounts needed to complete the liquidation
of the Registrant. Additionally, upon dissolution, the general
partner is required to make a payment to the Registrant equal to
the amount of any negative balance in its capital account (but
limited to a maximum of 1.01% of the total capital contributed by
limited partners to the Registrant). The general partner
estimates that the total cash distribution to limited partners as
a result of the sale of the Radnor Loan participation and the
dissolution of the Registrant will be approximately $60 to $62
per limited partner unit.
Lastly, upon dissolution, partners will receive a pro-rate
share of the Registrant's Class Four Claim awarded in the
Rehabilitation of The Mutual Benefit Life Insurance Company.
Notices of the exact amount of each partner's share of the Class
Four Claim will be sent directly to partners by The Mutual
Benefit Claims Administrator. It is expected that these notices
will be mailed prior to November 15, 1996.
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.
Mutual Benefit Mortgage Investors 1985
By: MB Mortgage, Inc.
General Partner
By: /S/ THOMAS G. MORGAN
Thomas G. Morgan
Vice President and Treasurer
Date: October 10, 1996
