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 May 19, 1999, 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 May 19, 1999, 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 May 19, 1999 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
May 19, 1999
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 May 19, 1999 and during the period
from December 31, 1998 through May 19, 1999. 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 May 19, 1999 and during the period
from December 31, 1998 through May 19, 1999, 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
