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 January 28, 2000,
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 January
28, 2000, 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, 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 January 28, 2000 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.
Parent McLaughlin & Nangle
Certified Public Accountants
January 28, 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 January 28, 2000, and during the period from
December 31, 1999 through January 28, 2000. 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 January 28, 2000 and
during the period from December 31, 1999 through January 28, 2000, 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
