Board of Directors
Bank Investment Fund Liquidity Fund and
The Securities and Exchange Commission
We have examined management's assertion about Bank Investment Fund
Liquidity Fund's (the "Fund's") compliance with certain rules under the
Investment Company Act of 1940 (the "Act") as of April 13, 1998 , included in
the accompanying Management Statement Regarding Compliance with Certain
Provisions of the Investment Company Act of 1940. Management is responsible
for the Fund's compliance with those requirements. Our responsibility is to
express an opinion on management's assertion about the Fund's compliance
based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Fund's compliance with those
requirements and performing such other procedures as we considered necessary
in the circumstances. Included among our procedures were the following tests
performed as of April 13, 1998, with respect to securities of Bank Investment
Fund Liquidity Fund, without prior notice to management:
Confirmation of all securities held by institutions in book entry form
by BankBoston and the U.S. Trust Company;
Reconciliation of all such securities to the books and records of the
Fund.
We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Fund's
compliance with specified requirements.
In our opinion, management's assertion that Bank Investment Fund Liquidity
Fund was in compliance with certain provisions of Rule 17f-2 of the
Investment Company Act of 1940 as of April 13, 1998 is fairly stated, in all
material respects.
This report is intended solely for the information and use of management of
Bank Investment Fund Liquidity Fund and the Securities and Exchange
Commission and should not be used for any other purpose.
Parent, Mclaughlin & Nangle
Certified Public Accountants
April 13, 1998
Management Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940
We, as members of management of Bank Investment Fund Liquidity Fund
(the "Fund"), are responsible for complying with the requirements of
Rule 17f-2, "Custody of Investments by Registered Management Investment
Companies," of the Investment Company Act of 1940. We are also responsible
for establishing and maintaining an effective internal control structure over
compliance with Rule 17f-2 requirements. We have performed an evaluation of the
Fund's compliance with the requirements of Rule 17f-2 as of April 13, 1998 and
during the period from December 31, 1997 through April 13, 1998. Based on
this evaluation, we assert that the Fund was in compliance with the
provisions of Rule 17f-2 of the Investment Company Act of 1940 as of April
13, 1998 and during the period from December 31, 1997 through April 13, 1998,
with respect to securities reflected in the investment account of the Fund.
Bank Investment Fund Liquidity Fund
James L. Burns, Jr.
President and Chief Executive Officer
