PROSPECTUS SUPPLEMENT
DATED JULY 1, 1996
TO PROSPECTUS OF
MOTORS MECHANICAL REINSURANCE COMPANY
DATED MAY 10, 1996
On June 21, 1996, the shareholders of Motors
Mechanical Reinsurance Company, Ltd. (the "Company") approved
an amendment of the Company's Articles of Incorporation which
changes the method described in paragraph 2 on pages 17-18 of
the Company's Prospectus dated May 10, 1996 for allocating
expenses and liabilities attributable to day-to-day Company
operations among the series of shares outstanding. Effective
July 1, 1996, such expenses and liabilities, excluding United
States Federal income taxes, will be allocated equally among
all Subsidiary Capital Accounts in accordance with the number
of series of Shares outstanding at the end of the fiscal
quarter immediately preceding the fiscal quarter in which the
expense or liability was incurred, provided that no such
expenses or liabilities shall be allocated to a Subsidiary
Capital Account for any portion of the Company's calendar year
during which such Subsidiary Capital Account is established.
