IR PASS-THROUGH CORP.
c/o Wexford Management LLC
411 West Putnam Avenue
Greenwich, CT 06830
(203) 862-7000
Fax: (203) 862-7461
Writer's Direct Dial:
862-7000
Integrated ARROs Fund I (the "Fund")
- ------------------------------------
February, 1997
Dear Unitholder:
Enclosed for your review are the Fund's audited financial statements as of
December 31, 1996. As you are aware, the Funds' investments are passive in
nature and consist of interest-bearing payment obligations which originated from
a series of net lease real estate partnerships. As such, the primary source of
payment for these obligations is the lease payments received from the
partnership's corporate tenants. We are pleased to report that all tenant
obligations continue to be met and, on an overall basis, the credit ratings of
these tenants have not materially changed since the initial offering of the
Units.
As previously reported, the Fund has made arrangements with Royal Alliance
Associates (212-551- 5100) to act as a market maker and with DCC Securities
Corp. (212-527-0220) to facilitate trading, as a broker, between buyers and
sellers of Units. Please contact these firms directly if you have any questions
regarding such activities.
If you have any specific questions regarding your holdings in the Fund, please
call the Trustee, at 800-874-6205.
Sincerely,
Integrated ARROs Fund I
By: IR Pass-through Corp., Sponsor
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Unitholders, Sponsor, and Trustee of
Integrated ARROs Fund I:
We have audited the accompanying financial statements of financial condition of
Integrated ARROs Fund I (the "Trust") as of December 31, 1996 and 1995,
including the schedule of portfolio investments as of December 31, 1996, and the
related statements of operations and changes in net assets for the years then
ended and the schedule of selected per unit operating performance, ratios and
supplemental data for each of the five years in the period ended December 31,
1996. These financial statements and per unit operating performance, ratios and
supplemental data are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and per
unit operating performance, ratios and supplemental data based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and per unit
operating performance, ratios and supplemental data are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and selected per unit operating
performance, ratios and supplemental data referred to above present fairly, in
all material respects, the financial position of Integrated ARROs Fund I at
December 31, 1996 and 1995, the results of its operations and changes in its net
assets and the selected per unit operating performance, ratios and supplemental
data for the above-stated periods in conformity with generally accepted
accounting principles.
As explained in Note 2, the financial statements include investments in payment
obligations valued at $9,682,270 and $9,132,093 for the years ended December 31,
1996 and l995, respectively, whose values have been stated at the lower of fair
market value as estimated by the Board of Directors of the Sponsor in the
absence of readily ascertainable market values or Minimum Termination Value. We
have reviewed the procedures used by the Board of Directors in arriving at its
estimate of value of such investments and have inspected underlying
documentation, and, in the circumstances, we believe the procedures are
reasonable and the documentation appropriate. However, because of the inherent
uncertainty of valuation, those estimated values may differ significantly from
the values that would have been used had a ready market for the investments
existed, and the differences could be material.
DELOITTE & TOUCHE, LLP
New York, New York
January 14, 1997
<PAGE>
<TABLE>
<CAPTION>
Integrated ARROs Fund I
Statements of Financial Condition
December 31,
-------------------------
1996 1995
----------- -----------
<S> <C> <C>
Assets
Cash ............................................... $ 76,198 $ --
Receivable - Trustee ............................... 1,180,824 --
Investments in payment obligations, at
minimum termination value (cost $2,771,874) ... 9,682,270 9,132,093
----------- -----------
Total Assets ....................................... 10,939,292 9,132,093
Liabilities
Distributions Payable .............................. 76,198 --
----------- -----------
Net Assets ......................................... $10,863,094 $ 9,132,093
=========== ===========
Net Asset Value per unit (2,771 units
outstanding) ....................................... $ 3,920.28 $ 3,295.59
=========== ===========
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Integrated ARROs Fund I
Statements of Operations
Year Ended December 31,
----------------------------
1996 1995
---------- ----------
Investment income:
<S> <C> <C>
Interest and discount earned ............... $1,880,292 $1,093,131
========== ==========
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Integrated ARROs Fund I
Statements of Changes in Net Assets
Year Ended December 31,
-------------------------------
1996 1995
------------ ------------
<S> <C> <C>
Increase in net assets from operations:
Net investment income .............................. $ 1,880,292 $ 1,093,131
------------ ------------
Net increase in net assets resulting from operations 1,880,292 1,093,131
Total declared as distributions to Unitholders ..... (149,291) --
------------ ------------
Net increase in net assets ......................... 1,731,001 1,093,131
Net assets:
Beginning of period ................................ 9,132,093 8,038,962
------------ ------------
End of period ...................................... $ 10,863,094 $ 9,132,093
============ ============
See notes to financial statements
</TABLE>
<PAGE>
Integrated ARROs Fund I
Notes to Financial Statements
1. ORGANIZATION
Integrated ARROs Fund I (the "Fund") is a grantor trust created under the
laws of the State of New York and registered under the Investment Company
Act of 1940 as a closed-end, non-diversified management investment company.
The Fund was formed in April 1987 for the purpose of realizing appreciation
in value and deferring the receipt of income through investments in a
portfolio consisting of payment obligations (the "Payment Obligations"),
issued by certain privately offered, single purpose limited partnerships
(the "Partnerships") previously sponsored by Integrated Resources, Inc.
("Integrated"). The Partnerships acquired and net leased commercial real
estate, which was sold to the Fund by IR Pass-through Corporation (the
"Sponsor"), formerly a wholly-owned subsidiary of Integrated. Pursuant to
the Consummation of a Plan of Reorganization ("the Plan"), on November 3,
1994, the Sponsor is now a wholly-owned indirect subsidiary of Presidio
Capital Corp. ("Presidio") (See Footnote 3). All capitalized terms, herein
not defined, have the same meaning as defined in the Trust Indenture.
2. SIGNIFICANT ACCOUNTING POLICIES
Security Valuation
The Payment Obligations are valued at the lower of fair market value (as
determined by the Board of Directors of the Sponsor) or Minimum Termination
Amount (as defined in the Trust Indenture).
Federal Income Taxes
The Fund is classified as a grantor trust. As a consequence, the Fund is
not subject to Federal Income Taxation.
3. CONFLICTS OF INTEREST
Entities directly or indirectly owned by former officers and/or directors
of the Sponsor and/or Integrated or its post bankruptcy successor, Presidio
are the general partners of the Partnerships. Such general partners have a
fiduciary responsibility to make decisions which are in the best interest
of their respective Partnership. There may be circumstances in which such
general partners may make decisions on behalf of the Partnerships which
could conflict with or have an adverse effect on the rights of unitholders
of the Fund. Although the Partnerships must comply with the terms of the
Payment Obligations, there can be no assurance that the decisions of the
general partners on behalf of the Partnerships would not adversely affect
the value of the units and/or the ability of the Partnerships to fulfill
their obligations under the Payment Obligations.
<PAGE>
3. CONFLICTS OF INTEREST - (CONT'D)
Subject to the rights of the Unitholders under the Trust Indenture,
Presidio is responsible for the administration of the Fund through its
indirect ownership of all of the shares of the Sponsor. Wexford Management
LLC ("Wexford") provides administrative services to Presidio, who provides
services for the Fund.
4. THE PAYMENT OBLIGATIONS
The seven Payment Obligations acquired by the Fund were issued from 1981 to
1982 for the sale to the Partnerships of rights to acquire interests in
properties or for services rendered.
Payments on the seven Payment Obligations are scheduled over a period not
in excess of 40 years from commencement of the initial terms ("Primary
Terms"), ranging from 20 to 25 years, of the respective net leases.
Interest at simple interest rates ranging from 13% to 18.5% accrues on the
principal amount for each Payment Obligation. Payments on the Payment
Obligations are scheduled to commence approximately 15 years after
commencement of the Primary Terms of a net lease.
If a net lease is not extended by the lessee beyond the Primary Term, the
Partnership's obligation to pay the balance of the principal of a Payment
Obligation and accrued interest does not accelerate. In such event, the
Partnership may either seek to re-lease or to sell the property, but there
can be no assurance that such a sale or new lease would be made or that it
would be made timely. If a sale is made, the balance of the principal and
accrued interest thereon may be declared by the holder of the Payment
Obligation, in its discretion, to be immediately due and payable. Upon any
disposition by a Partnership of its interest in the property, the
Partnership shall be obligated to pay the holder of the Payment Obligation
(after satisfaction of any obligations senior to that of the Payment
Obligation which are then due and payable) first, accrued unpaid interest
and then the unpaid principal balance of the payment Obligation. If such
sale is not made, so long as the Partnership continues to make timely
payments under the Payment Obligation, generally there is no right of the
Fund to accelerate payment thereof.
There are significant limitations on the amounts that the Fund may receive
in the event of a sale or other disposition of a Partnership's property. As
such, it is possible that the Fund may not realize the entire outstanding
principal and interest thereon of the related Payment Obligation.
<PAGE>
5. COMMITMENTS AND CONTINGENCIES
The Sponsor will bear all costs of administering the Fund through the
period in which the Fund will be receiving only primary term payments.
However, upon the period when the Fund begins receiving renewal term
payments, the Fund shall bear a portion of such costs equal to the
percentage of the renewal term payments received by the Fund in such year
to all of the payments received by the Fund in such year.
The Trust Indenture provides that the above obligations of the Sponsor were
to be funded through the retention of a portion of the proceeds from the
sale of the Units. However, the Sponsor did not segregate from the general
assets of its then parent, Integrated, a portion of the sale proceeds for
this purpose. Integrated filed for bankruptcy on February 13, 1990 under
Chapter 11 of the United States Bankruptcy code. While Integrated's
bankruptcy did not directly affect the Fund, and had no effect on the
portfolio of the Fund, the bankruptcy did affect the Sponsor, which had no
source of revenues other than Integrated. The Sponsor therefore filed a
claim in Integrated's bankruptcy proceedings for the amounts necessary to
fund the Sponsor's obligations to the Fund and to Fund II. As Integrated's
liabilities far exceeded its assets, and the Sponsor's claim was that of an
unsecured general creditor, it was unlikely that amounts eventually paid on
the Sponsor's claim would be sufficient to fund the Sponsor's obligations.
However, in 1994 in full settlement of the Sponsor's claim, Integrated paid
the Sponsor $450,000. The Sponsor projected at that time, based on a
present value estimate of legal, accounting, trustee fees, and printing and
mailing costs, that this amount would enable the Sponsor to meet its
obligations to the Fund, and its similar obligations to Fund II, through
approximately the year 2000. However, at that time there was no assurance
that the $450,000 paid by Integrated, plus any interest accrued (the
"Settlement Fund"), would in fact be sufficient to fund the Sponsor's
obligations through the year 2000. As of December 31, 1996, approximately
$126,500 remained of the original Settlement Fund. It was also projected at
the time of settlement, that in the year 2000 the securities held by the
Fund would begin to generate cash which could be used to administer the
Fund and Fund II. There can be no assurance that such cash will be
generated or that the remaining amount of the Settlement Fund will be
sufficient to fund the Sponsor's obligations through the year 2000.
<PAGE>
5. COMMITMENTS AND CONTINGENCIES (CON'T)
Set forth below is certain information with respect to the Sponsor's
directors and officers. The business address for each of them is c/o
Wexford Management LLC, 411 West Putnam Avenue, Greenwich, Connecticut
06830.
<TABLE>
<CAPTION>
NAME POSITIONS WITH SPONSOR PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS
---- ---------------------- --------------------------------------------
<S> <C> <C>
Robert Holtz Director and President Presidio, Vice President and Secretary since August 1994; Resurgence, Vice
President and Assistant Secretary since March 1994; Wexford Management
LLC, Senior Vice President and Assistant Secretary since January 1996;
Wexford Management Corp., Senior Vice President from November 1995 through
December 1995; Concurrency, Vice President from May 1994 through October
1995; Bear Stearns Real Estate Group Inc., Vice President from June 1993
through May 1994. Employed from 1989 to 1994.
Mark Plaumann Director and Vice President Wexford Management LLC, Senior Vice President since January 1996; Wexford
Management Corp., Senior Vice President from November 1995 through
December 1995; Concurrency, Vice President from February 1995 through
October 1995; Alvarez and Marsel, Inc., a crisis -management consulting
firm, Managing Director from 1990 through January 1995.
Jay L. Maymudes Vice President, Secretary Presidio, Chief Financial Officer, Vice President and Treasurer since
and Treasurer August 1994; Resurgence, Chief Financial Officer, Vice President and
Assistant Secretary since July 1994; Wexford Management LLC, Chief
Financial Officer and Senior Vice President since January 1996; Wexford
Management Corp., Chief Financial Officer and Senior Vice President from
November 1995 through December 1995; Concurrency, Chief Financial Officer
and Vice President from July 1994 through October 1995; Dusco, Inc. (a
real estate investment advisor), Secretary and Treasurer from December
1988, and Senior Vice President from February 1990, in each case through
June 1994.
Arthur H. Amron Vice President Presidio, Vice President since November 1994; Wexford Management LLC,
and Assistant Secretary Senior Vice President and General Counsel since January 1996; Wexford
Management Corp., Senior Vice President and General Counsel from November
1995 through December 1995; Concurrency, General Counsel from November
1994 through October 1995; from 1992 to November 1994, attorney with
Schulte, Roth & Zabel; Prior to 1992, attorney with Debevoise & Plimpton.
Guy Sansone Assistant Secretary Wexford Management LLC, Vice President since January 1996; Wexford
Management Corp., Vice President from November 1995 through December 1995;
Concurrency, employed from November 1994 through October 1995; Deloitte &
Touche LLP, Manager, employed from 1989 through October 1994.
</TABLE>
6. DISTRIBUTION PAYABLE
The Trustee declared a $76,198 ($27.50 per unit) distribution payable to
unitholders of record as of December 31, 1996. Such distribution was paid
on January 15, 1997.
<PAGE>
7. SIGNIFICANT TRANSACTION
In May 1996, the tenant at the Huntsville, Texas property, one of five
properties owned by Elway Associates (the underlying partnership),
exercised the economic discontinuance clause contained in its lease. This
clause generally allows the tenant to purchase the property for a
predetermined amount set forth in the lease upon declaring continued use
and occupancy of the property economically unsuitable. As a result, Elway
Associates wired proceeds of $1,149,699 to the Fund's Trustee in partial
satisfaction of the Elway payment obligation. The amount received in this
case is substantially in excess of the portion of the Minimum Termination
Amount allocable to the Huntsville, Texas lease. While the Trust Indenture
provides for acceptance of involuntary sale (economic discontinuance)
proceeds in prepayment of a payment obligation in which the underlying
partnership has a single property (lease), it does not specifically provide
for acceptance of involuntary sale (economic discontinuance) proceeds in
partial prepayment of a payment obligation where the underlying partnership
has more than one property (lease) comprising the payment obligation, as is
the case here. The Sponsor believes that the original intent of the Trust
Indenture was to allow for such partial prepayment. However, the Trustee
has not agreed to allow the Elway payment in partial satisfaction of the
associated payment obligation and has placed the Elway proceeds in an
interest bearing account, separate from that of the Fund, pending a
resolution of this issue. The Elway proceeds and any interest earned
thereon have been reflected as a receivable from the Trustee on the
accompanying financial statements. The Sponsor is exploring several
alternatives to resolve this issue, including the possibility of issuing a
proposal to clarify the Trust Indenture to provide for such circumstance,
among other things. Such a proposal would require the approval of the
holders of the Fund's units to become effective. A distribution of the cash
received as a result of the above transaction has not been declared by the
Trustee pending resolution of this issue. The financial statements reflect
the receipt of the cash by the Trustee and an adjustment of the net assets
as a result of the transaction as if the payment were applied in partial
satisfaction of the associated payment obligation. The Elway primary and
renewal term payments were reduced on a prorata basis to reflect the
involuntary sale of the Huntsville, Texas property. It is not clear what
action, if any, the Trustee will take with respect to the Elway proceeds or
future partial satisfactions of payment obligations.
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Integrated ARROs Fund I
Schedule of Portfolio Investments
December 31, 1996
Partnership/ Discount To
Date Payment Original Simple Arrive at
Obligation Property Type of Principal Interest Accrued Minimum Termination
Incurred Lessee Location property Amount Rate Interest Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Walando Walgreen Orlando, FL Office/ $ 820,000 13.0% $ 1,684,000 $ 1,497,684
03/18/81 Company Warehouse
Building
Santex Albertson's Venice, FL Retail 570,000 17.0% 1,503,000 1,002,664
07/01/81 (2) Inc. Livermore, CA Facilities
Lando Albertson's Portland, OR Retail 783,451 16.0% 1,906,000 1,754,604
10/21/81 Inc. Orlando, FL Facilities
(amended Huntsville, AL
04/15/82)
Denville Xerox Lewisville, TX Plant 963,048 15.0% 2,172,000 2,215,261
12/27/81 Corporation Facility
(amended
01/27/84)
Elway Safeway Billings, MT Retail 1,429,042 18.5% 3,913,000 3,433,630
03/18/82 Stores, Inc. Huntsville, TX (5) Facilities
Fort Worth, TX
Aurora, CO
Mamoth Lakes, CA
Walstaff Walgreen Flagstaff, AZ Warehouse/ 1,159,771 16.0% 2,732,000 2,345,569
04/15/82 Arizona Distribution
(amended Drug Co. Building
06/17/82) (3)
Walcreek Hercules Walnut Creek, Office 1,306,709 18.5% 3,488,000 2,498,339
08/1/82 Credit Inc. CA Building
(amended (4)
06/29/83,
12/3/84)
---------- ----------- -----------
$7,032,021 $17,398,000 $14,747,751
========== =========== ===========
(1) Primary Term of the applicable net lease.
(2) Two Payment Obligations, one for each property, treated as one.
(3) Guaranteed by Walgreen Company.
(4) Guaranteed by Hercules Incorporated
(5) In May 1996, the tenant at the Huntsville, Texas property exercised the
economic discontinuance clause in its lease.
(6) As adjusted, due to the exercise of economic discontinuance in the
Huntsville, Texas lease.
<PAGE>
<CAPTION>
Integrated ARROs Fund I
Schedule of Portfolio Investments -- Continued
December 31, 1995
Partnership
Date Payment Periodic Minimum
Obligation Property Payment During Termination
Incurred Lessee Location Primary Term (1) Value
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Walando Walgreen Orlando, FL 5/1/96-4/1/06 $1,006,316
03/18/81 Company $11,833/mo
Santex Albertson's Venice, FL 9/1/96-8/1/06 1,070,336
07/01/81 (2) Inc. Livermore, CA $13,342/mo
Lando Albertson's Portland, OR 7/1/97-1/1/07 934,847
10/21/81 Inc. Orlando, FL $62,656/semi.
(amended Huntsville, AL
04/15/82)
Denville Xerox Lewisville, TX 8/1/98-7/1/08 919,787
12/27/81 Corporation $12,038/mo
(amended
01/27/84)
Elway Safeway Billings, MT 7/1/97-6/1/07 1,908,412
03/18/82 Stores, Inc. Huntsville, TX (5) $28,053/mo (6)
Fort Worth, TX
Aurora, CO
Mamoth Lakes, CA
Walstaff Walgreen Flagstaff, AZ 12/1/98-6/1/03 1,546,202
04/15/82 Arizona $156,738/semi.
(amended Drug Co.
06/17/82) (3)
Walcreek Hercules Walnut Creek, 10/1/97-9/1/07 2,296,370
08/1/82 Credit Inc. CA $30,155/mo
(amended (4)
06/29/83,
12/3/84)
----------
$9,682,270
==========
(1) Primary Term of the applicable net lease.
(2) Two Payment Obligations, one for each property, treated as one.
(3) Guaranteed by Walgreen Company.
(4) Guaranteed by Hercules Incorporated
(5) In May 1996, the tenant at the Huntsville, Texas property exercised the
economic discontinuance clause in its lease.
(6) As adjusted, due to the exercise of economic discontinuance in the
Huntsville, Texas lease.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Integrated ARROs Fund I
Schedule of Selected Per Unit Operating Performance, Ratios and Supplemental Data
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------
Per Unit Operating Performance 1996 1995 1994 1993 1992
- ------------------------------ ----------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $ 3,295.59 $ 2,901.11 $ 2,556.08 $ 2,253.97 $ 1,989.14
Net investment income ....................... 678.56 394.48 345.03 302.11 264.83
Distributions from
net investment income ..................... (53.87) -- -- -- --
----------- ---------- ---------- ---------- ----------
Net asset value, end of period .............. $ 3,920.28 $ 3,295.59 $ 2,901.11 $ 2,556.08 $ 2,253.97
=========== ========== ========== ========== ==========
Total investment return ..................... $ 678.56 $ 394.48 $ 345.03 $ 302.11 $ 264.83
=========== ========== ========== ========== ==========
Ratios/Supplemental Data
- ------------------------
Net assets, end of period ................... $10,863,094 $9,132,093 $8,038,962 $7,082,896 $6,245,750
Ratio of expenses to average net assets ..... N/A N/A N/A N/A N/A
Ratio of net investment income to
average net assets ........................ 18.81% 12.73% 12.64% 12.56% 12.48%
Portfolio turnover rate ..................... N/A N/A N/A N/A N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INEGRATED ARROS FUND I
SCHEDULE OF ACCRUED INTEREST ON OUTSTANDING PAYMENT OBLIGATIONS -- JANUARY 1, 1996 THROUGH DECEMBER 31, 1996
DATE ACCRUED INTEREST DATE ACCRUED INTEREST DATE ACCRUED INTEREST DATE ACCRUED INTEREST
<S> <C> <C> <C> <C> <C> <C> <C>
01-Jan-96 17,231,390 23-Feb-96 17,411,055 16-Apr-96 17,590,719 08-Jun-96 16,740,959
02-Jan-96 17,234,780 24-Feb-96 17,414,445 17-Apr-96 17,594,109 09-Jun-96 16,744,151
03-Jan-96 17,238,170 25-Feb-96 17,417,834 18-Apr-96 17,597,499 10-Jun-96 16,747,343
04-Jan-96 17,241,560 26-Feb-96 17,421,224 19-Apr-96 17,600,889 11-Jun-96 16,750,535
05-Jan-96 17,244,950 27-Feb-96 17,424,614 20-Apr-96 17,604,279 12-Jun-96 16,753,726
06-Jan-96 17,248,339 28-Feb-96 17,428,004 21-Apr-96 17,607,669 13-Jun-96 16,756,918
07-Jan-96 17,251,729 29-Feb-96 17,431,394 22-Apr-96 17,611,059 14-Jun-96 16,760,110
08-Jan-96 17,255,119 01-Mar-96 17,434,784 23-Apr-96 17,614,449 15-Jun-96 16,763,302
09-Jan-96 17,258,509 02-Mar-96 17,438,174 24-Apr-96 17,617,839 16-Jun-96 16,766,493
10-Jan-96 17,261,899 03-Mar-96 17,441,564 25-Apr-96 17,621,229 17-Jun-96 16,769,685
11-Jan-96 17,265,289 04-Mar-96 17,444,954 26-Apr-96 17,624,618 18-Jun-96 16,772,877
12-Jan-96 17,268,679 05-Mar-96 17,448,344 27-Apr-96 17,628,008 19-Jun-96 16,776,069
13-Jan-96 17,272,069 06-Mar-96 17,451,733 28-Apr-96 17,631,398 20-Jun-96 16,779,260
14-Jan-96 17,275,459 07-Mar-96 17,455,123 29-Apr-96 17,634,788 21-Jun-96 16,782,452
15-Jan-96 17,278,849 08-Mar-96 17,458,513 30-Apr-96 17,638,178 22-Jun-96 16,785,644
16-Jan-96 17,282,238 09-Mar-96 17,461,903 01-May-96 17,641,568 23-Jun-96 16,788,836
17-Jan-96 17,285,628 10-Mar-96 17,465,293 02-May-96 16,622,865 24-Jun-96 16,792,027
18-Jan-96 17,289,018 11-Mar-96 17,468,683 03-May-96 16,626,057 25-Jun-96 16,795,219
19-Jan-96 17,292,408 12-Mar-96 17,472,073 04-May-96 16,629,248 26-Jun-96 16,798,411
20-Jan-96 17,295,798 13-Mar-96 17,475,463 05-May-96 16,632,440 27-Jun-96 16,801,603
21-Jan-96 17,299,188 14-Mar-96 17,478,853 06-May-96 16,635,632 28-Jun-96 16,804,794
22-Jan-96 17,302,578 15-Mar-96 17,482,243 07-May-96 16,638,824 29-Jun-96 16,807,986
23-Jan-96 17,305,968 16-Mar-96 17,485,632 08-May-96 16,642,015 30-Jun-96 16,811,178
24-Jan-96 17,309,358 17-Mar-96 17,489,022 09-May-96 16,645,207 01-Jul-96 16,814,369
25-Jan-96 17,312,748 18-Mar-96 17,492,412 10-May-96 16,648,399 02-Jul-96 16,817,561
26-Jan-96 17,316,137 19-Mar-96 17,495,802 11-May-96 16,651,591 03-Jul-96 16,820,753
27-Jan-96 17,319,527 20-Mar-96 17,499,192 12-May-96 16,654,782 04-Jul-96 16,823,945
28-Jan-96 17,322,917 21-Mar-96 17,502,582 13-May-96 16,657,974 05-Jul-96 16,827,136
29-Jan-96 17,326,307 22-Mar-96 17,505,972 14-May-96 16,661,166 06-Jul-96 16,830,328
30-Jan-96 17,329,697 23-Mar-96 17,509,362 15-May-96 16,664,358 07-Jul-96 16,833,520
31-Jan-96 17,333,087 24-Mar-96 17,512,752 16-May-96 16,667,549 08-Jul-96 16,836,712
01-Feb-96 17,336,477 25-Mar-96 17,516,142 17-May-96 16,670,741 09-Jul-96 16,839,903
02-Feb-96 17,339,867 26-Mar-96 17,519,531 18-May-96 16,673,933 10-Jul-96 16,843,095
03-Feb-96 17,343,257 27-Mar-96 17,522,921 19-May-96 16,677,124 11-Jul-96 16,846,287
04-Feb-96 17,346,647 28-Mar-96 17,526,311 20-May-96 16,680,316 12-Jul-96 16,849,479
05-Feb-96 17,350,036 29-Mar-96 17,529,701 21-May-96 16,683,508 13-Jul-96 16,852,670
06-Feb-96 17,353,426 30-Mar-96 17,533,091 22-May-96 16,686,700 14-Jul-96 16,855,862
07-Feb-96 17,356,816 31-Mar-96 17,536,481 23-May-96 16,689,891 15-Jul-96 16,859,054
08-Feb-96 17,360,206 01-Apr-96 17,539,871 24-May-96 16,693,083 16-Jul-96 16,862,246
09-Feb-96 17,363,596 02-Apr-96 17,543,261 25-May-96 16,696,275 17-Jul-96 16,865,437
10-Feb-96 17,366,986 03-Apr-96 17,546,651 26-May-96 16,699,467 18-Jul-96 16,868,629
11-Feb-96 17,370,376 04-Apr-96 17,550,041 27-May-96 16,702,658 19-Jul-96 16,871,821
12-Feb-96 17,373,766 05-Apr-96 17,553,431 28-May-96 16,705,850 20-Jul-96 16,875,013
13-Feb-96 17,377,156 06-Apr-96 17,556,820 29-May-96 16,709,042 21-Jul-96 16,878,204
14-Feb-96 17,380,546 07-Apr-96 17,560,210 30-May-96 16,712,234 22-Jul-96 16,881,396
15-Feb-96 17,383,935 08-Apr-96 17,563,600 31-May-96 16,715,425 23-Jul-96 16,884,588
16-Feb-96 17,387,325 09-Apr-96 17,566,990 01-Jun-96 16,718,617 24-Jul-96 16,887,780
17-Feb-96 17,390,715 10-Apr-96 17,570,380 02-Jun-96 16,721,809 25-Jul-96 16,890,971
18-Feb-96 17,394,105 11-Apr-96 17,573,770 03-Jun-96 16,725,001 26-Jul-96 16,894,163
19-Feb-96 17,397,495 12-Apr-96 17,577,160 04-Jun-96 16,728,192 27-Jul-96 16,897,355
20-Feb-96 17,400,885 13-Apr-96 17,580,550 05-Jun-96 16,731,384 28-Jul-96 16,900,547
21-Feb-96 17,404,275 14-Apr-96 17,583,940 06-Jun-96 16,734,576 29-Jul-96 16,903,738
22-Feb-96 17,407,665 15-Apr-96 17,587,330 07-Jun-96 16,737,768 30-Jul-96 16,906,930
<PAGE>
<CAPTION>
INEGRATED ARROS FUND I
SCHEDULE OF ACCRUED INTEREST ON OUTSTANDING PAYMENT OBLIGATIONS -- JANUARY 1, 1995 THROUGH DECEMBER 31, 1995 -- Cont'd.
DATE ACCRUED INTEREST DATE ACCRUED INTEREST DATE ACCRUED INTEREST
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
31-Jul-96 16,910,122 22-Sep-96 17,079,284 14-Nov-96 17,248,447
01-Aug-96 16,913,314 23-Sep-96 17,082,476 15-Nov-96 17,251,638
02-Aug-96 16,916,505 24-Sep-96 17,085,668 16-Nov-96 17,254,830
03-Aug-96 16,919,697 25-Sep-96 17,088,859 17-Nov-96 17,258,022
04-Aug-96 16,922,889 26-Sep-96 17,092,051 18-Nov-96 17,261,214
05-Aug-96 16,926,081 27-Sep-96 17,095,243 19-Nov-96 17,264,405
06-Aug-96 16,929,272 28-Sep-96 17,098,435 20-Nov-96 17,267,597
07-Aug-96 16,932,464 29-Sep-96 17,101,626 21-Nov-96 17,270,789
08-Aug-96 16,935,656 30-Sep-96 17,104,818 22-Nov-96 17,273,981
09-Aug-96 16,938,848 01-Oct-96 17,108,010 23-Nov-96 17,277,172
10-Aug-96 16,942,039 02-Oct-96 17,111,202 24-Nov-96 17,280,364
11-Aug-96 16,945,231 03-Oct-96 17,114,393 25-Nov-96 17,283,556
12-Aug-96 16,948,423 04-Oct-96 17,117,585 26-Nov-96 17,286,748
13-Aug-96 16,951,614 05-Oct-96 17,120,777 27-Nov-96 17,289,939
14-Aug-96 16,954,806 06-Oct-96 17,123,969 28-Nov-96 17,293,131
15-Aug-96 16,957,998 07-Oct-96 17,127,160 29-Nov-96 17,296,323
16-Aug-96 16,961,190 08-Oct-96 17,130,352 30-Nov-96 17,299,515
17-Aug-96 16,964,381 09-Oct-96 17,133,544 01-Dec-96 17,302,706
18-Aug-96 16,967,573 10-Oct-96 17,136,736 02-Dec-96 17,305,898
19-Aug-96 16,970,765 11-Oct-96 17,139,927 03-Dec-96 17,309,090
20-Aug-96 16,973,957 12-Oct-96 17,143,119 04-Dec-96 17,312,282
21-Aug-96 16,977,148 13-Oct-96 17,146,311 05-Dec-96 17,315,473
22-Aug-96 16,980,340 14-Oct-96 17,149,503 06-Dec-96 17,318,665
23-Aug-96 16,983,532 15-Oct-96 17,152,694 07-Dec-96 17,321,857
24-Aug-96 16,986,724 16-Oct-96 17,155,886 08-Dec-96 17,325,049
25-Aug-96 16,989,915 17-Oct-96 17,159,078 09-Dec-96 17,328,240
26-Aug-96 16,993,107 18-Oct-96 17,162,270 10-Dec-96 17,331,432
27-Aug-96 16,996,299 19-Oct-96 17,165,461 11-Dec-96 17,334,624
28-Aug-96 16,999,491 20-Oct-96 17,168,653 12-Dec-96 17,337,816
29-Aug-96 17,002,682 21-Oct-96 17,171,845 13-Dec-96 17,341,007
30-Aug-96 17,005,874 22-Oct-96 17,175,037 14-Dec-96 17,344,199
31-Aug-96 17,009,066 23-Oct-96 17,178,228 15-Dec-96 17,347,391
01-Sep-96 17,012,258 24-Oct-96 17,181,420 16-Dec-96 17,350,583
02-Sep-96 17,015,449 25-Oct-96 17,184,612 17-Dec-96 17,353,774
03-Sep-96 17,018,641 26-Oct-96 17,187,804 18-Dec-96 17,356,966
04-Sep-96 17,021,833 27-Oct-96 17,190,995 19-Dec-96 17,360,158
05-Sep-96 17,025,025 28-Oct-96 17,194,187 20-Dec-96 17,363,349
06-Sep-96 17,028,216 29-Oct-96 17,197,379 21-Dec-96 17,366,541
07-Sep-96 17,031,408 30-Oct-96 17,200,571 22-Dec-96 17,369,733
08-Sep-96 17,034,600 31-Oct-96 17,203,762 23-Dec-96 17,372,925
09-Sep-96 17,037,792 01-Nov-96 17,206,954 24-Dec-96 17,376,116
10-Sep-96 17,040,983 02-Nov-96 17,210,146 25-Dec-96 17,379,308
11-Sep-96 17,044,175 03-Nov-96 17,213,338 26-Dec-96 17,382,500
12-Sep-96 17,047,367 04-Nov-96 17,216,529 27-Dec-96 17,385,692
13-Sep-96 17,050,559 05-Nov-96 17,219,721 28-Dec-96 17,388,883
14-Sep-96 17,053,750 06-Nov-96 17,222,913 29-Dec-96 17,392,075
15-Sep-96 17,056,942 07-Nov-96 17,226,104 30-Dec-96 17,395,267
16-Sep-96 17,060,134 08-Nov-96 17,229,296 31-Dec-96 17,398,459
17-Sep-96 17,063,326 09-Nov-96 17,232,488
18-Sep-96 17,066,517 10-Nov-96 17,235,680
19-Sep-96 17,069,709 11-Nov-96 17,238,871
20-Sep-96 17,072,901 12-Nov-96 17,242,063
21-Sep-96 17,076,093 13-Nov-96 17,245,255
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 9,682
<RECEIVABLES> 1,180
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 10,939
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 76
<TOTAL-LIABILITIES> 76
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 3
<SHARES-COMMON-PRIOR> 3
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 10,863
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 1,880
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 149
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 9,407
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 3,920.28
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
