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 December 31, 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 December 31, 1999, with respect to securities of Bank
Investment Fund - Liquidity Fund:
Confirmation of all securities held by institutions in book entry form by
BankBoston, Baystate Federal Savings Bank, Mellon 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 December 31, 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 is not intended to be and should not be used by anyone other
than these specified parties.
Certified Public Accountants
Parent, Mclaughlin & Nangle
January 27, 2000
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 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 December 31, 1999, and
during the period from December 31, 1998 through December 31, 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
December 31, 1999 and during the period from December 31, 1998 through
December 31, 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
