UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
_____________
Date of Report (Date of earliest event reported): April 4, 1996
PROPERTY SECURED INVESTMENTS, INC.PROPERTY SECURED INVESTMENTS, INC.
(Exact name of registrant as specified in its charter)
California 33-26036 95-4075422
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
445 South Figueroa Street, Suite 2600,
Los Angeles, California 90071-1630
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (213) 612-7714
EXHIBIT INDEX AT PAGE: NOT APPLICABLE
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Item 2. Acquisition or Disposition of Assets
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The sole remaining piece of real property owned by
Property Secured Investments, Inc. (the "Company") was declared
tax defaulted by Los Angeles County due to the failure of the
original borrower to pay Los Angeles County real property taxes
for the 1989-1990 tax year. Such property is located at 11011
Crenshaw Boulevard in Inglewood, California, an economically
disadvantaged, inner-city area and was recently repaired from
fire damage. The Company obtained title to such property by
foreclosure in 1993. Although apparently notified of such tax
defaults prior to and at the time of such foreclosure, the
Company's prior advisor, Property Mortgage Co., Inc. ("PMC"), now
in bankruptcy, and its loan servicing agents, did not take action
to pay the past due taxes, penalties and interest. Prior to its
bankruptcy, PMC was responsible for the Company's management.
The Company's former President, Irving Kellog, caused the Company
to pay the real property taxes for the 1993-1994 tax year.
Mr. Kellog, who was responsible for the day-to-day operations of
the Company after PMC's bankruptcy, died in early 1994 and left
no record of the tax status of the property. Under new
management, which took office September 1994, the Company
attempted to sell the property but received no qualified offers.
The property was sold in a tax sale in February, 1996
for a $159,000. Title was transferred to the new owner on
April 4, 1996. At the time of sale, taxes, penalties and
interest due totalled approximately $57,100. There were excess
proceeds from the tax sale of approximately $101,900. The
Company has filed a claim with Los Angeles County for such excess
proceeds. Although the Company is unaware of any other potential
claimants to such proceeds, the amount of its recovery, if any,
from such claim is uncertain. Under California law, any lien
holder on the property at the time of the tax sale has priority
over the Company as the owner of the property due to the prior
foreclosure. Under California law, such proceeds will not be
dispersed until at least one year after transfer of title and
will be reduced by certain administrative costs incurred by the
County.
Item 5. Other Events
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On June 7, 1996, the Company's Board of Directors
declared a dividend of $.50 per share (after giving effect to the
one-for-four reserve stock split effected by the Company on
July 7, 1995) of the Company's Common Stock. The record date for
such dividend was June 7, 1996. Such dividend was paid on
July 3, 1996.
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Pursuant to the requirement of the Securities Exchange
Act of 1934, the Company has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Dated: July 30, 1996
PROPERTY SECURED INVESTMENTS, INC.
By: /s/ ANDREW K. PROCTOR
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ANDREW K. PROCTOR, President
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