BANK INVESTMENT FUND - LIQUIDITY FUND
REPORT ON COMPLIANCE WITH CERTAIN RULES UNDER
THE INVESTMENT COMPANY ACT OF 1940
Independent Auditor's Report
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 October 15, 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 October 15, 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, Fleet Bank, 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 October 15, 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.
Certified Public Accountants
Parent, McLaughlin & Nangle
October 15, 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 October 15, 1998 and
during the period from December 31, 1997 through October 15, 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 October 15, 1998 and
during the period from December 31, 1997 through October 15, 1998, with
respect to securities reflected in the investment account of the Fund.
Bank Investment Fund - Liquidity Fund
By:
James L. Burns, Jr.
President and Chief Executive Officer
