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 July 7, 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 July 7, 2000, with respect to securities of Bank Investment
und - 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
Citizens Bank;
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 July 7, 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
July 7, 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 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 July 7, 2000, and during the period
from December 31, 1999 through July 7, 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 July 7, 2000 and during the
period from December 31, 1999 through July 7, 2000, with respect to
securities reflected in the investment account of the Fund.
Bank Investment Fund - Liquidity Fund
By:
William F. Casey, Jr.
President and Chief Executive Officer
