SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 1-9373
SUMMIT TAX EXEMPT BOND FUND, L.P.
(Exact names of registrant as specified in its charter)
Delaware 13-3323104
- ------------------------------- -----------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
625 Madison Avenue, New York, New York 10022
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 421-5333
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
--- ---
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
SUMMIT TAX EXEMPT BOND FUND, L.P.
(a limited partnership)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
ASSETS
March 31, December 31,
1996 1995
------------ ------------
Participating first mortgage bonds, net $127,601,006 $127,568,506
Temporary investments 2,250,000 1,350,000
Cash and cash equivalents 127,432 626,391
Promissory notes receivable, net 6,745,342 6,823,335
Deferred bond selection fees, net 1,670,704 1,708,218
Interest receivable, net 811,248 829,565
Deferred financing fees, net 229,028 260,985
Other assets 0 10,776
------------ ------------
Total assets $139,434,760 $139,177,776
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Loan payable $ 13,680,866 $ 13,680,866
Deferred income 1,053,167 1,143,191
Due to affiliates 298,514 49,262
Accounts payable and accrued expenses 119,916 124,850
------------ ------------
Total liabilities 15,152,463 14,998,169
------------ ------------
Contingencies
Partners' capital (deficit):
BUC$holders (7,906,234 BUC$
issued and outstanding) 124,656,081 124,555,445
General partners (373,784) (375,838)
------------ ------------
Total partners' capital 124,282,297 124,179,607
------------ ------------
Total liabilities and partners' capital $139,434,760 $139,177,776
============ ============
See accompanying notes to financial statements
2
<PAGE>
SUMMIT TAX EXEMPT BOND FUND, L.P.
(a limited partnership)
STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
March 31,
------------------------------
1996 1995
----------- -----------
Revenues:
Interest income:
Participating first mortgage bonds, net $2,405,750 $2,359,498
Promissory notes 158,734 150,475
Temporary investments 15,687 20,812
----------- ----------
Total revenues 2,580,171 2,530,785
----------- ----------
Expenses:
Interest expense 330,807 345,738
Management fees 167,969 167,969
Loan Servicing Fees 83,309 82,620
General and administrative 80,254 91,505
Legal expense 51,478 84,000
Amortization of deferred bond selection fees 37,514 37,514
Amortization of deferred financing fees 31,957 31,956
----------- ----------
Total expenses 783,288 841,302
----------- ----------
Net income $1,796,883 $1,689,483
=========== ==========
Allocation of Net Income:
BUC$holders $1,760,945 $1,655,693
=========== ==========
General Partners $ 35,938 $ 33,790
=========== ==========
Net income per BUC $ .22 $ .21
=========== ==========
See accompanying notes to financial statements
3
<PAGE>
SUMMIT TAX EXEMPT BOND FUND, L.P.
(a limited partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
(Unaudited)
<TABLE>
<CAPTION>
Total BUC$holders General Partners
------------- ------------- ----------------
<S> <C> <C> <C>
Partners' capital (deficit) - January 1, 1996 $ 124,179,607 $ 124,555,445 $ (375,838)
Net income 1,796,883 1,760,945 35,938
Distributions (1,694,193) (1,660,309) (33,884)
------------- ------------- -----------
Partners' capital (deficit) - March 31, 1996 $ 124,282,297 $ 124,656,081 $ (373,784)
============= ============= ===========
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
SUMMIT TAX EXEMPT BOND FUND, L.P.
(a limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
----------------------------
1996 1995
---------- ----------
Cash flows from operating activities:
Interest received $2,533,017 $2,524,077
Fees and expenses paid (127,916) (191,332)
Interest paid (330,807) (345,738)
---------- ----------
Net cash provided by operating activities 2,074,294 1,987,007
---------- ----------
Cash flows from investing activities:
Net purchase of temporary investments (900,000) (400,611)
---------- ----------
Cash flows from financing activities:
Distributions paid (1,694,193) (1,694,193)
Principal payments on promissory note 20,940 0
---------- ----------
Net cash used in financing activities (1,673,253) (1,694,193)
---------- ----------
Net decrease in cash and cash equivalents (498,959) (107,797)
Cash and cash equivalents at beginning of period 626,391 173,689
---------- ----------
Cash and cash equivalents at end of period $ 127,432 $ 65,892
========== ==========
Schedule reconciling net income to net cash
provided by operating activities:
Net income $1,796,883 $1,689,483
---------- ----------
Adjustments to reconcile net income to net cash
provided by operating activities:
Accretion of valuation allowance (32,500) (32,503)
Amortization of deferred income (32,971) (32,971)
Amortization of deferred bond selection fees 37,514 37,514
Amortization of deferred financing fees 31,957 31,956
Changes in:
Promissory notes receivable, net 57,053 67,936
Interest receivable 18,317 58,766
Other assets 10,776 6,128
Deferred income (57,053) (67,936)
Accounts payable and accrued expenses (4,934) (30,951)
Due to affiliates 249,252 259,585
---------- ----------
Total adjustments 277,411 297,524
---------- ----------
Net cash provided by operating activities $2,074,294 $1,987,007
========== ==========
See accompanying notes to financial statements
5
<PAGE>
SUMMIT TAX EXEMPT BOND FUND, L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
NOTE 1 - General
These financial statements have been prepared without audit. In
the opinion of management, the financial statements contain all adjustments
(consisting of only normal recurring adjustments) necessary to present fairly
the financial position of Summit Tax Exempt Bond Fund, L.P. (the "Partnership")
as of March 31, 1996 and the results of its operations and its cash flows for
the three months ended March 31, 1996 and 1995. However, the operating results
for the interim periods may not be indicative of the results expected for the
full year.
Certain information and footnote disclosures normally included in
annual financial statements prepared in accordance with generally accepted
accounting principles have been omitted. It is suggested that these financial
statements be read in conjunction with the financial statements and notes
thereto included in the Partnership's Annual Report on Form 10-K filed with the
Securities and Exchange Commission for the year ended December 31, 1995.
NOTE 2 - Participating First Mortgage Bonds ("FMB's")
FMBs and promissory notes are carried at cost less a valuation
allowance where appropriate. The Partnership periodically evaluates the
collectibility of both interest and principal of these investments to determine
whether they are impaired. An FMB or promissory note is considered to be
impaired when, based on current information and events, it is probable that the
Partnership will be unable to collect all amounts due according to the existing
contractual terms. When an FMB or promissory note is considered to be impaired,
the amount of the valuation allowance is determined by discounting the expected
cash flows at the FMB's or promissory note's original effective interest rate,
or, for practical purposes, at the estimated fair value of the collateral.
The process of determining impairment and the appropriate level of
the valuation allowance is based upon projections of future economic events such
as property occupancy rates, rental rates, operating cost inflation and market
capitalization rates. The cash flows used in this process are based on good
faith estimates and assumptions developed by the Partnership's Management.
Changes in market conditions and circumstances may occur which would cause these
estimates and assumptions to change, which, in turn, could cause additional
impairments. Thus, the Partnership may be required to provide for additional
valuation allowances, which could be material, in subsequent years. No change in
the valuation allowance was recorded in the three months ended March 31, 1996.
With respect to the FMBs which are subject to forbearance
agreements with the respective obligors, the difference between the stated
interest rates and the rates paid (whether deferred and payable out of available
future cash flow or, ultimately, from sale or refinancing proceeds) on FMBs is
not accrued for financial statement purposes. The accrual of interest at the
stated interest rate will resume once a property's ability to pay the stated
rate has been adequately demonstrated. Unrecorded contractual interest income
was approximately $170,000 and $307,000 for the three months ended March 31,
1996 and 1995, respectively.
6
<PAGE>
SUMMIT TAX EXEMPT BOND FUND, L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
NOTE 2 - Participating First Mortgage Bonds (continued)
Descriptions of the FMBs owned by the Partnership at March 31,
1996 are as follows:
<TABLE>
<CAPTION>
Annualized
interest rate
paid for the
three months Minimum
ended Pay Rate Stated
March 31, at March 31, Interest Maturity
Property Location 1996* 1996* Rate* Call Date Date Face Amount Carrying Amount
- -------- -------- ------------- ----------- ---- ---------- ----------- ------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
The Mansion Independence, MO 6.27% (B) 5.23% 5.23% Dec. 2004 May 2010 $ 19,450,000 $ 17,600,000
Martin's Creek Summerville, SC 6.64 (C) 7.50 8.25 Mar. 2000 May 2010 7,300,000 7,055,456
East Ridge Mt. Pleasant, SC 7.55 (C) 7.50 8.25 Mar. 2000 May 2010 8,700,000 8,424,572
High Pointe Club Harrisburg, PA 6.76 (A) 8.50 Jun. 1998 Jun. 2006 8,900,000 7,545,000
Cypress Run Tampa, FL 5.86 (A) 8.50 Aug. 1998 Aug. 2006 15,402,428 15,402,428
Thomas Lake Eagan, MN 8.25 8.25 8.50 Aug. 1998 Aug. 2006 12,975,000 12,975,000
North Glen Atlanta, GA 6.00 6.00 8.50 Aug. 1998 Aug. 2008 12,400,000 12,400,000
Greenway Manor St. Louis, MO 8.83 8.50 8.50 Oct. 1998 Sept. 2006 12,850,000 12,300,000
Clarendon Hills Hayward, CA 5.52 5.52 5.52 Dec. 2003 Dec. 2003 17,600,000 17,600,000
Cedar Creek McKinney, TX 7.56 (A) 8.50 Dec. 1998 Dec. 2006 8,100,000 7,798,550
Sunset Terrace Lancaster, CA 4.38 (A) 8.00 Feb. 1999 Feb. 2007 10,350,000 10,350,000
------------ ------------
$134,027,428 $129,451,006
============
Less: Allowance for loss on impairment of assets (1,850,000)
------------
Carrying amount $127,601,006
============
</TABLE>
*The rate paid represents the interest recorded by the Partnership while the
stated rate represents the coupon rate of the FMB and the minimum pay rate
represents the minimum rate payable pursuant to the applicable forbearance
agreement, if any.
(A) Pay rate is based on net cash flow generated by the property.
(B) Includes contingent interest paid during the three months ended March 31,
1996.
(C) The actual annual pay rate is adjusted as of the property's fiscal year end
based on audited financial statements to no less than the minimum pay rate.
7
<PAGE>
SUMMIT TAX EXEMPT BOND FUND, L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
NOTE 3 - Related Parties
Prudential-Bache Properties, Inc. ("PBP") and the Related General
Partner (collectively, the "General Partners") and their affiliates perform
services for the Partnership which include, but are not limited to: accounting
and financial management; registrar, transfer and assignment functions; asset
management; investor communications; printing and other administrative services.
The General Partners and their affiliates receive reimbursements for costs
incurred in connection with these services, the amount of which is limited by
the provisions of the Agreement of Limited Partnership (the "Partnership
Agreement"). The costs and expenses were:
Three Months Ended
March 31,
---------------------------
1996 1995
-------- --------
PBP and affiliates:
General and administrative $ 21,730 $ 26,802
Management fee 83,984 83,984
-------- --------
105,714 110,786
-------- --------
The Related General Partner and affiliates:
General and administrative 15,000 12,819
Loan servicing fees 83,309 82,620
Management fee 83,985 83,985
-------- --------
182,294 179,424
-------- --------
$288,008 $290,210
======== ========
An affiliate of the Related General Partner receives loan
servicing fees (see above) in an amount of .25% per annum of the principal
amount outstanding on FMBs serviced by the affiliate.
The General Partners are paid, in the aggregate, an annual
management fee equal to .5% of the original amount invested in FMBs.
A division of Prudential Securities Incorporated ("PSI"), an
affiliate of PBP, was responsible for the purchase, sale and safekeeping of the
Partnership's temporary investments in 1995. This account was maintained in
accordance with the Partnership Agreement.
Several executive officers and directors of the Related General
Partner own less than 1% of the outstanding BUC$.
8
<PAGE>
SUMMIT TAX EXEMPT BOND FUND, L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
NOTE 4 - Contingencies
On or about October 18, 1993, a putative class action, captioned
Kinnes et al v. Prudential Securities Group, Inc. et al. (93 Civ. 654), was
filed in the United States District Court for the District of Arizona,
purportedly on behalf of investors in the Partnership against the Partnership,
PBP, PSI and a number of other defendants. On November 16, 1993, a putative
class action captioned Connelly et al v. Prudential-Bache Securities Inc. et al.
(93 Civ. 713) , was filed in the United States District Court for the District
of Arizona , purportedly on behalf of investors in the Partnership against the
Partnership, PBP, PSI and a number of other defendants. On January 3, 1992, a
putative class action, captioned Levine v. Prudential-Bache Properties Inc. et
al. (92 Civ. 52), was filed in the United States District Court for the Northern
District of Illinois purportedly on behalf of investors in the Partnership
against the General Partners, PSI and a number of other defendants. Subsequently
the Related General Partner exited the Levine litigation by way of settlement.
By April 14, 1994, the Judicial Panel on Multidistrict Litigation
transferred the Kinnes case, and by order dated May 4, 1994, the Connelly case,
and by order dated July 13, 1994, the Levine case, to a single judge of the
United States District Court for the Southern District of New York and
consolidated them for pretrial proceedings under the caption In re Prudential
Securities Incorporated Limited Partnerships Litigation (MDL Docket No. 1005).
On June 8, 1994 plaintiffs in the transferred cases filed a complaint that
consolidated the previously filed complaints and named as defendants, among
others, PSI, certain of its present and former employees and the General
Partners. The Partnership was not named a defendant in the consolidated
complaint, but the name of the Partnership was listed as being among the limited
partnerships at issue in the case.
On August 9, 1995 PBP, PSI and other Prudential defendants entered
into a Stipulation and Agreement of Partial Compromise and Settlement with legal
counsel representing plaintiffs in the consolidated actions. The court
preliminarily approved the settlement agreement by order dated August 29, 1995
and, following a hearing held November 17, 1995, found that the agreement was
fair, reasonable, adequate and in the best interests of the plaintiff class. The
court gave final approval to the settlement, certified a class of purchasers of
specific limited partnerships, including the Partnership, released all settled
claims by members of the class against the PSI settling defendants and
permanently barred and enjoined class members from instituting, commencing or
prosecuting any settled claim against the released parties. The full amount due
under the settlement agreement has been paid by PSI. The consolidated action
remains pending against the Related General Partner and certain of its
affiliates.
NOTE 5 - Subsequent Event
In May 1996, distributions of approximately $1,660,000 and $34,000
were paid to the BUC$holders and General Partners, respectively, for the quarter
ended March 31, 1996.
9
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Liquidity and Capital Resources
Summit Tax Exempt Bond Fund, L.P. (the "Partnership") has invested
in eleven tax-exempt participating first mortgage bonds ("FMBs") issued by
various state or local governments or their agencies or authorities. The FMBs
are secured by participating first mortgage loans on multi-family residential
apartment projects.
The first quarter distribution of $1,660,000 ($.21 per BUC) was
paid to BUC$holders in May 1996 from current undistributed adjusted cash flow
from operations. Interest payments from FMBs are anticipated to provide
sufficient liquidity to meet the operating expenditures of the Partnership in
future years and to fund distributions.
The Partnership's loan payable has a variable interest rate;
therefore, future levels of interest expense will fluctuate in correlation to
movements in the 30-day commercial paper interest rate.
Management is not aware of any trends or events, commitments or
uncertainties, which have not otherwise been disclosed that will or are likely
to impact liquidity in a material way. The Partnership's investments in FMB's
are secured by a Partnership interest in properties which are diversified by
location so that if one area of the country is experiencing downturns in the
economy, the remaining properties may be experiencing upswings.
Results of Operations
FMBs and promissory notes are carried at cost less a valuation
allowance where appropriate. The Partnership periodically evaluates the
collectibility of both interest and principal of these investments to determine
whether they are impaired. An FMB or promissory note is considered to be
impaired when, based on current information and events, it is probable that the
Partnership will be unable to collect all amounts due according to the existing
contractual terms. When an FMB or promissory note is considered to be impaired,
the amount of the valuation allowance is determined by discounting the expected
cash flows at the FMB's or promissory note's original effective interest rate,
or, for practical purposes, at the estimated fair value of the collateral.
The process of determining impairment and the appropriate level of
the valuation allowance is based upon projections of future economic events such
as property occupancy rates, rental rates, operating cost inflation and market
capitalization rates. The cash flows used in this process are based on good
faith estimates and assumptions developed by the Partnership's management.
Changes in market conditions and circumstances may occur which would cause these
estimates and assumptions to change, which, in turn, could cause additional
impairments. Thus, the Partnership may be required to provide for additional
valuation allowances, which could be material, in subsequent years. No change in
the valuation allowance was recorded in the three months ended March 31, 1996.
Net income increased by approximately $107,000 for the three
months ended March 31, 1996 as compared to 1995 for the reasons discussed below.
10
<PAGE>
Interest income from FMBs remained fairly constant with a 2%
increase for the three months ended March 31, 1996 as compared to the
corresponding period in 1995 as a result of scheduled increases in minimum pay
rates and increases in net cash flow generated by certain properties.
Interest income from temporary investments decreased by
approximately $5,000 for the three months ended March 31, 1996 as compared to
1995 primarily due to lower interest rates and invested balances.
General and administrative expenses decreased by approximately
$11,000 for the three months ended March 31, 1996 as compared to 1995 primarily
due to an overaccrual of auditing expenses in the fourth quarter of 1995.
Legal expenses decreased approximately $33,000 for the three
months ended March 31, 1996 as compared to 1995. This decrease was primarily due
to nonrecurring legal costs incurred with respect to the Cypress Run bankruptcy
proceedings.
Property Information
The following table lists the FMBs the Partnership owns together
with occupancy rates of the underlying properties as of April 28, 1996:
<TABLE>
<CAPTION>
Annualized
Interest
Rate Paid
for the three Minimum
Stated months ended Pay Rate at
Interest March March 31,
Property Location Face Amount Occupancy Rate* 31, 1996* 1996*
- -------------- ---------------- ----------- --------- -------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
The Mansion Independence, MO $19,450,000 98.7% 5.23% 6.27% (B) 5.23%
Martin's Creek Summerville, SC 7,300,000 94.9 8.25 6.64 (C) 7.50
East Ridge Mt. Pleasant, SC 8,700,000 94.4 8.25 7.55 (C) 7.50
High Pointe Club Harrisburg, PA 8,900,000 98.3 8.50 6.76 (A)
Cypress Run Tampa, FL 15,402,428 90.1 8.50 5.86 (A)
Thomas Lake Eagan, MN 12,975,000 99.1 8.50 8.25 8.25
North Glen Atlanta, GA 12,400,000 96.1 8.50 6.00 6.00
Greenway Manor St. Louis, MO 12,850,000 100.0 8.50 8.83 8.50
Clarendon Hills Hayward, CA 17,600,000 100.0 5.52 5.52 5.52
Cedar Creek McKinney, TX 8,100,000 98.8 8.50 7.56 (A)
Sunset Terrace Lancaster, CA 10,350,000 81.0 8.00 4.38 (A)
------------
$134,027,428
============
</TABLE>
*The rate paid represents the interest recorded by the Partnership while the
stated rate represents the coupon rate of the FMB and the minimum pay rate
represents the minimum rate payable pursuant to the applicable forbearance
agreement, if any.
(A) Pay rate is based on net cash flow generated by the property.
(B) Includes contingent interest paid during the three months ended March 31,
1996.
(C) The actual annual pay rate is adjusted as of the property's fiscal year end
based on audited financial statements to no less than the minimum pay rate.
11
<PAGE>
General
The determination as to whether it is the best interest of the
Partnership to enter into forbearance agreements on the FMBs or, alternatively,
to pursue its remedies under the loan documents, including foreclosure, is based
upon several factors including, but not limited to, property performance, owner
cooperation and projected legal costs.
Certain property owners have, at times, supplemented the cash flow
generated by the properties to meet the required FMB interest payments. There
can be no assurance that in the future any property owner will elect to
supplement property cash flow to satisfy bond interest requirements, if
necessary. The owner of the Sunset Terrace property supplemented the cash flow
generated by the property to meet the interest payments made during the first
five months of 1995. No property owner made supplementary payments during the
three months ended March 31, 1996.
12
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - Incorporated by reference to Note 4 to the
financial statements filed herewith in Item 1 of Part 1 of the
Registrant's Quarterly Report.
Item 2. Changes in Securities -- None
Item 3. Defaults Upon Senior Securities -- None
Item 4. Submission of Matters to a Vote of Security Holders -- None
Item 5. Other information -- None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
4(a) Partnership Agreement, incorporated by reference to
Exhibit A to the Prospectus of Registrant, dated
February 19, 1986, filed pursuant to Rule 424(b) under
the Securities Act of 1933, File No. 33-2421.
4(b) Amended and Restated Certificate of Limited Partnership,
incorporated by reference to Exhibit 4 to the
Registration Statement on Form S-11, File No. 33-2421.
27 Financial Data Schedule (filed herewith).
(b) Reports on Form 8-K -- No reports on Form 8-K were filed
during the quarter.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
SUMMIT TAX EXEMPT BOND FUND, L.P.
By: Related Tax Exempt Bond Associates, Inc.
A Delaware corporation, General Partner
Date: May 14, 1996 By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes
Vice President
Date: May 14, 1996 By: /s/ Lawrence J. Lipton
----------------------
Lawrence J. Lipton
Treasurer
(Principal Financial and Accounting Officer)
By: Prudential-Bache Properties, Inc.
A Delaware corporation, General Partner
Date: May 14, 1996 By: /s/ Eugene D. Burak
-------------------
Eugene D. Burak
Vice President
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial information extracted from the financial
statements for Summit Tax Exempt Bond Fund L.P. and is qualified in its entirety
by reference to such financial statements
</LEGEND>
<CIK> 0000786156
<NAME> Summit Tax Exempt Bond Fund L.P.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 127,432
<SECURITIES> 129,851,006
<RECEIVABLES> 9,456,322
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 139,434,760
<CURRENT-LIABILITIES> 1,471,597
<BONDS> 13,680,866
0
0
<COMMON> 0
<OTHER-SE> 124,282,297
<TOTAL-LIABILITY-AND-EQUITY> 139,434,760
<SALES> 0
<TOTAL-REVENUES> 2,580,171
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 452,481
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 330,807
<INCOME-PRETAX> 1,796,883
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,796,883
<EPS-PRIMARY> .22
<EPS-DILUTED> 0
</TABLE>
