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 September 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to ____________
Commission file number 0-16856
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3368726
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
411 West Putnam Avenue Greenwich, CT 06830
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(203) 862-7000
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by checkmark 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>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
FORM 10-Q - SEPTEMBER 30, 1997
INDEX
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
BALANCE SHEETS - September 30, 1997 and December 31, 1996
STATEMENTS OF OPERATIONS - For the three months ended September 30, 1997
and 1996 and for the nine months ended September 30, 1997 and 1996
STATEMENT OF PARTNERS' EQUITY - For the nine months ended September 30,
1997
STATEMENTS OF CASH FLOWS - For the nine months ended September 30, 1997
and 1996
NOTES TO FINANCIAL STATEMENTS
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
PART II - OTHER INFORMATION
ITEM 5 - OTHER INFORMATION
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
SIGNATURES
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
BALANCE SHEETS
September 30, December 31,
1997 1996
----------- -----------
<S> <C> <C>
ASSETS
Investments in mortgage loans (net of allowance for
loan losses of $12,133,380) ...................... $16,616,033 $16,616,033
Cash and cash equivalents ........................... 2,912,738 2,873,084
Other receivable..................................... -- 11,899
----------- -----------
$19,528,771 $19,501,016
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Liabilities
Accounts payable and accrued expenses ............... $ 91,911 $ 130,798
----------- -----------
Commitments and contingencies
Partners' equity
Limited partners' equity (as restated) (187,919 units
issued and outstanding) .......................... 18,950,964 18,885,988
General partners' equity (as restated) .............. 485,896 484,230
----------- -----------
Total partners' equity ....................... 19,436,860 19,370,218
----------- -----------
$19,528,771 $19,501,016
=========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
STATEMENTS OF OPERATIONS
For the three months ended For the nine months ended
September 30, September 30,
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues
Short term investment interest ............. $ 49,380 $ 34,872 $ 120,321 $ 87,379
Other income................................ 6,375 12,940 19,815 29,388
Mortgage loans interest income ............. -- 410,376 -- 1,198,941
----------- ----------- ----------- -----------
55,755 458,188 140,136 1,315,708
----------- ----------- ----------- -----------
Costs and expenses
General and administrative expenses ........ 29,587 37,823 73,494 117,491
Write-down for loan losses ................ -- -- -- 1,515,000
----------- ----------- ----------- -----------
29,587 37,823 73,494 1,632,491
----------- ----------- ----------- -----------
Net income (loss) ............................... $ 26,168 $ 420,365 $ 66,642 $ (316,783)
=========== =========== =========== ===========
Net income (loss) attributable to
Limited partners ........................... $ 25,514 $ 409,856 $ 64,976 $ (308,863)
General partners............................ 654 10,509 1,666 (7,920)
----------- ----------- ----------- -----------
$ 26,168 $ 420,365 $ 66,642 $ (316,783)
=========== =========== =========== ===========
Net income (loss) per unit of limited partnership
interest (187,919 units outstanding) ....... $ .14 $ 2.18 $ .35 $ (1.64)
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
STATEMENT OF PARTNERS' EQUITY
General Limited Total
Partners' Partners' Partners'
Equity Equity Equity
------------ ------------ ------------
<S> <C> <C> <C>
Balance, January 1, 1997 ......................... $ (249,527) $ 19,619,745 $ 19,370,218
Reallocation of partners' equity.................. 733,757 (733,757) --
------------ ------------ ------------
Balance, January 1, 1997 (as restated) ........... 484,230 18,885,988 19,370,218
Net income for the nine months ended
September 30, 1997........................... 1,666 64,976 66,642
------------ ------------ ------------
Balance, September 30, 1997 ...................... $ 485,896 $ 18,950,964 $ 19,436,860
============ ============ ============
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended
September 30,
----------------------------------
1997 1996
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
Cash flows from operating activities
Net income (loss) .............................................. $ 66,642 $ (316,783)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities
Non-cash revenue earned on mortgage loans ............... -- (1,198,941)
Write-down for loan losses .............................. -- 1,515,000
Changes in assets and liabilities
Other receivable ............................................ 11,899 --
Accounts payable and accrued expenses ....................... (38,887) 12,635
----------- -----------
Net cash provided by operating activities ............... 39,654 11,911
----------- -----------
Net increase in cash and cash equivalents ........................... 39,654 11,911
Cash and cash equivalents, beginning of period ...................... 2,873,084 2,835,755
----------- -----------
Cash and cash equivalents, end of period ............................ $ 2,912,738 $ 2,847,666
=========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
NOTES TO FINANCIAL STATEMENTS
1 INTERIM FINANCIAL INFORMATION
The summarized financial information contained herein is unaudited;
however, in the opinion of management, all adjustments (consisting only
of normal recurring accruals) necessary for a fair presentation of such
financial information have been included. The accompanying financial
statements, footnotes and discussions should be read in conjunction
with the financial statements, related footnotes and discussions
contained in the Resources Accrued Mortgage Investors 2 L.P. (the
"Partnership") annual report on Form 10-K for the year ended December
31, 1996. The results of operations for the nine months ended September
30, 1997 are not necessarily indicative of the results to be expected
for the full year.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Investments in mortgage loans
The Partnership principally invested in "zero coupon" senior and junior
mortgage loans on properties owned or acquired by limited partnerships
originally sponsored by affiliates of the General Partners. These loans
generally contain provisions whereby the Partnership may be entitled to
additional interest represented by participation in the appreciation of
the underlying property.
The Partnership accounts for its investments in mortgage loans under
the following methods:
Investment method
Mortgage loans representing transactions in which the Partnership
is considered to have substantially the same risks and potential
rewards as the borrower are accounted for as investments in real
estate rather than as loans. Although the transactions are
structured as loans, due to the terms of the zero coupon mortgage,
it is not readily determinable at inception that the borrower will
continue to maintain a minimum investment in the property. Under
this method of accounting, the Partnership will recognize as
revenue the lesser of the amount of interest as contractually
provided for in the mortgage loan, or its pro rata share of the
actual cash flow from operations of the underlying property
inclusive of depreciation and interest expense on any senior
indebtedness. None of the Partnership's mortgage loans are
currently recognizing revenue under the investment method.
Interest method
Under this method of accounting, the Partnership recognizes revenue
as interest income over the term of the mortgage loan so as to
produce a constant periodic rate of return. Interest income will
not be recognized as revenue during periods where there are
concerns about the ultimate realization of the interest or loan
principal.
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
NOTES TO FINANCIAL STATEMENTS
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Allowance for loan losses
An allowance for loan losses is established based upon a quarterly
review of each of the mortgage loans in the Partnership's portfolio. In
performing this review, management considers the estimated net
realizable value of the mortgage loan or collateral as well as other
factors, such as the current occupancy, the amount and status of any
senior debt, the prospects for the property and the economic situation
in the region where the property is located. Because this determination
of net realizable value is based upon projections of future economic
events which are inherently subjective, the amounts ultimately realized
at disposition may differ materially from the carrying value as of
September 30, 1997.
The allowance is inherently subjective and is based upon management's
best estimate of current conditions and assumptions about expected
future conditions. The Partnership may provide for additional losses in
subsequent periods and such provisions could be material. A $1,515,000
allowance for loan losses was recorded on the Twin Oak loan for the
nine months ended September 30, 1996. No allowance was required for the
nine months ended September 30, 1997.
Recently issued accounting pronouncements
The Financial Accounting Standards Board has recently issued several
new accounting pronouncements. Statement No. 128, "Earnings per Share"
establishes standards for computing and presenting earnings per share,
and is effective for financial statements for both interim and annual
periods ending after December 15, 1997. Statement No. 129, "Disclosure
of Information about Capital Structure" establishes standards for
disclosing information about an entity's capital structure, and is
effective for financial statements for periods ending after December
15, 1997. Statement No. 130, "Reporting Comprehensive Income"
establishes standards for reporting and display of comprehensive income
and its components, and is effective for fiscal years beginning after
December 15, 1997. Statement No. 131, "Disclosures about Segments of an
Enterprise and Related Information" establishes standards for the way
that public business enterprises report information about operating
segments in annual financial statements and requires that those
enterprises report selected information about operating segments in
interim financial reports issued to shareholders. It also establishes
standards for related disclosures about products and services,
geographic areas, and major customers, and is effective for financial
statements for periods beginning after December 15, 1997.
Management of the Company does not believe that these new standards
will have a material effect on the Company's reported operating
results, per share amounts, financial position or cash flows.
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
NOTES TO FINANCIAL STATEMENTS
3 CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES
The Managing General Partner of the Partnership, RAM Funding, Inc., is
a wholly-owned subsidiary of Presidio Capital Corp. ("Presidio"). The
Associate General Partner of the Partnership is Presidio AGP Corp., a
Delaware Corporation ("Presidio AGP"), which is also a wholly-owned
subsidiary of Presidio. The general partners and certain affiliates of
the general partners, are general partners in several other limited
partnerships which are also affiliated with Presidio, and which are
engaged in businesses that are, or may be in the future, in direct
competition with the Partnership. On November 2, 1997, the
Adinistrative Services Agreement with Wexford Management LLC
("Wexford"), the administrator for Presidio, expired. Pursuant to that
agreement Wexford had the authority to designate directors of the
General Partners. Effective November 3, 1997, Wexford and Presidio
entered into an Administrative Services Agreement dated as of November
3, 1997 (the "ASA")which expires on May 3, 1998. Under the terms of the
ASA Wexford will provide consulting and administrative services to
Presidio and its affilates for a term of six months. For the nine
months ended September 30, 1997 and 1996, reimbursable expenses paid to
Wexford amounted to $21,192 and $39,978, respectively.
Effective November 3,1 997, the officers and employees of Wexford that
had served as officers and/or directors of the General Partners
tendered their resignation. On the same date, the Board of Directors
appointed new individuals to serve as officers and/or directors of the
General Partners.
The Partnership had invested principally in mortgage loans on
properties owned or acquired by privately syndicated limited
partnerships which were controlled by Presidio. Transactions entered
into between the Partnership and such entities are subject to inherent
conflicts of interest.
The General Partners are allocated 2.5% of the net income or loss of
the Partnership and are entitled to 2.5% of distributions. The 2.5%
shall be apportioned 98% to the Managing General Partner and 2% to the
Associate General Partner. For the quarters ended September 30, 1997
and 1996, the Managing General Partner and Associate General Partner
were allocated net income of $641 and $13 and $10,299 and $210,
respectively.
4 INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES
The Partnership invests in zero-coupon, nonrecourse senior and junior
mortgage loans. Collection of the amounts due on the Partnership's
junior mortgage loans is solely dependent upon the sale or refinancing
of the underlying properties at amounts sufficient to satisfy the
Partnership's mortgage notes after payment of the senior mortgage notes
owned by unaffiliated third parties.
The Partnership has three outstanding mortgage loans.
The Partnership has prepared internal appraisals for the properties
owned by Twin Oak Plaza Associates, L.P. ("Twin Oak") and High Cash
Partners, L.P. ("High Cash"). The general partners of Twin Oak are
affiliated with the Managing General Partner of the Partnership. Until
June 1997, the general partners of High Cash were affiliated with the
Managing General Partner of the Partnership. The Twin Oak and High Cash
loans require that if the appraisal indicates that the value of all
indebtedness senior to and including the Partnership's loan, taking
into account principal plus accrued interest in excess of 5% per annum,
exceeds 85% of the then current appraisal, the borrower must repay the
indebtedness to a point where the 85% loan to value ratio is restored.
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
NOTES TO FINANCIAL STATEMENTS
Twin Oak is currently failing this test and it is anticipated that High
Cash will fail this test at some point in the future. The Partnership
will not take action against the borrowers at this time. By calling its
loans, the Partnership believes the borrowers would most likely seek
protection under Chapter 11 of the United States Bankruptcy Code, which
would require the Partnership to expend legal and administrative funds.
Since the estimated market value of the Twin Oak property is
approximately equal to the first mortgage plus the carrying value of
the Partnership's mortgage and the estimated market value of the High
Cash property is approximately equal to the Partnership's first
mortgage, by calling its loans, the Partnership would further
jeopardize its potential for realizing the full contractual value of
its mortgage loans.
Twin Oak loan
The first mortgage on this property, which is held by an unaffiliated
third party, was due to mature on July 1, 1993, however, during 1993,
this loan was extended for three years until July 1, 1996. The terms
and conditions of the extension were essentially the same as the
original loan. During October 1997, the Twin Oak borrower and its first
mortgage lender formally agreed to extend the maturity date of the
first mortgage until July 1, 1998.
Sierra loan
During the first quarter of 1997, High Cash, the owner of the Sierra
property and the borrower under the Sierra loan, wrote the property
down to its estimated fair market value of $15,875,000. The balance of
the Sierra loan at December 31, 1996 was approximately $15,979,000 and
it was unlikely that any additional interest accrued on the Sierra loan
would ultimately be recovered from the value of the underlying
property. Consequently, as of January 1, 1997 the Partnership ceased
accruing interest on the Sierra loan.
On June 13, 1997, the general partners of High Cash sold their general
partner interests to Pembroke HCP LLC and Pembroke AGP Corp.,
unaffiliated third parties.
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
NOTES TO FINANCIAL STATEMENTS
4 INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued)
Interest recognized for the Partnership's mortgage loans is as
follows:
Nine months ended
September 30,
------------------------------
Description 1997 1996
----------- ---- ----
Shopping Center
Sierra Marketplace (a), (b)
Reno, Nevada $ - $ 1,198,941
============= =============
(a) This loan is accounted for under the interest method.
(b) The Partnership may be entitled to additional interest in the
appreciation of this property which is subordinated to a
specified return to the Borrower. It is unlikely that the
Partnership will realize any additional interest from this loan.
Information with respect to the Partnership's mortgage loans is as
follows:
<TABLE>
<CAPTION>
Mortgage Mortgage Mortgage
Interest Compound Loan Maturity Amount Purchased Placement
Description Rate % Period Type Date Date Advanced Interest Fees
- ----------- ------ ------ ---- ---- ---- -------- -------- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Office Building
Harbor Plaza 13.307 Monthly 2nd 13-Feb-89 1-Dec-99(e) $10,000,000 $ 23,513 $ 594,867
Boston, MA (a)
Sierra Marketplace (b)(c) 11.220 Monthly 1st 10-Feb-89 28-Feb-01 6,500,000 - 385,757
Reno, NV
Twin Oak (b) 12.280 Annually 2nd 3-Apr-90 1-May-02 1,200,000 - 71,218
Ft. Lauderdale, FL
----------- ----------- ------------
$17,700,000 $ 23,513 $ 1,051,842
=========== =========== ============
</TABLE>
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.
NOTES TO FINANCIAL STATEMENTS
4 INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued)
<TABLE>
<CAPTION>
(d)
Interest recognized Carrying value Contractual Balance
------------------- -------------- -------------------
Sep. 30, 1996 and Reserves/ Sep. 30, Dec. 31, Sep. 30, Dec. 31,
Description 1997 Prior Write-offs 1997 1996 1997 1996
- ----------- ---- ----- ---------- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Office Building
Harbor Plaza $ - $ - $(10,618,380) $ - $ - $ 31,346,860 $28,385,000
Boston, MA (a)
Sierra Marketplace (b)(c) - 9,093,598 - 15,979,355 15,979,355 17,059,235 15,688,576
Reno, NV
Twin Oak (b) - 880,460 (1,515,000) 636,678 636,678 2,854,793 2,614,938
Ft. Lauderdale, FL
----------- ----------- ------------ ------------ ------------ ------------ -----------
$ - $ 9,974,058 $(12,133,380) $ 16,616,033 $ 16,616,033 $ 51,260,888 $46,688,514
=========== =========== ============ ============ ============ ============ ===========
</TABLE>
(a) This loan is accounted for under the investment method.
(b) These loans are accounted for under the interest method.
(c) The Partnership may be entitled to additional interest in the
appreciation of the property which is subordinated to a specified
return to the borrower. It is unlikely that the Partnership will
realize any additional interest from this loan.
(d) Contractual balance represents the amount that would be paid by the
borrower if the loan was liquidated (principal plus accrued interest
earned to date).
(e) This mortgage was extended until December 1, 1999.
Summary of mortgage activity is as follows:
<TABLE>
<CAPTION>
Nine months ended Year ended
September 30, 1997 December 31, 1996
------------------------------------- --------------------------------------
Investment Interest Investment Interest
Method Method Total Method Method Total
----------- ----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Opening balance $ - $16,616,033 $16,616,033 $ - $16,511,153 $16,511,153
Income recognized - - - - 1,619,880 1,619,880
Allowance for loan losses - - - - (1,515,000) (1,515,000)
----------- ----------- ----------- ----------- ----------- ------------
Ending balance $ - $16,616,033 $16,616,033 $ - $16,616,033 $16,616,033
=========== =========== =========== =========== =========== ===========
</TABLE>
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.
NOTES TO FINANCIAL STATEMENTS
5 PARTNERS' EQUITY
The General Partners hold a 2.5% equity interest in the Partnership.
However, at the inception of the Partnership, the General Partners'
equity account was credited with only the actual capital contributed in
cash, $1,000. The Partnership's management determined that this
accounting does not appropriately reflect the Limited Partners' and the
General Partners' relative participations in the Partnership's net
assets, since it does not reflect the General Partners' 2.5% equity
interest in the Partnership. Thus, the Partnership has restated its
financial statements to reallocate $733,757 (2.5% of the gross proceeds
raised at the Partnership's formation) of the partners' equity to the
General Partners' equity account. This reallocation was made as of the
inception of the Partnership and all periods presented in the financial
statements have been restated to reflect the reallocation. The
reallocation has no impact on the Partnership's financial position,
results of operations, cash flows, distributions to partners, or the
partners' tax basis capital accounts.
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
The General Partners hold a 2.5% equity interest in the Partnership.
However, at the inception of the Partnership, the General Partners'
equity account was credited with only the actual capital contributed in
cash, $1,000. The Partnership's management determined that this
accounting does not appropriately reflect the Limited Partners' and the
General Partners' relative participations in the Partnership's net
assets, since it does not reflect the General Partners' 2.5% equity
interest in the Partnership. Thus, the Partnership has restated its
financial statements to reallocate $733,757 (2.5% of the gross proceeds
raised at the Partnership's formation) of the partners' equity to the
General Partners' equity account. This reallocation was made as of the
inception of the Partnership and all periods presented in the financial
statements have been restated to reflect the reallocation. The
reallocation has no impact on the Partnership's financial position,
results of operations, cash flows, distributions to partners, or the
partners' tax basis capital accounts.
The Partnership invested the net proceeds of its public offering in
four "zero coupon" first and junior mortgage loans aggregating
$23,300,000 in principal and secured by properties owned principally by
privately and publicly syndicated limited partnerships originally
sponsored by affiliates of the general partners.
The Partnership currently has investments in three of these four
mortgage loans with outstanding balances of approximately $17,700,000
in principal.
As of September 30, 1997, the Partnership had working capital reserves
of approximately $2,900,000. Working capital reserves are invested in
short-term instruments and are expected to be sufficient to pay
administrative expenses during the term of the Partnership. The
Partnership does not anticipate making any distributions from cash flow
during its first 8 to 12 years of operations, or until such time as the
mortgage loans mature or are prepaid.
Results of operations
Net income increased for the nine months ended September 30, 1997 and
decreased for the quarter ended September 30, 1997 compared to the same
periods in 1996. The increase in net income for the nine months was
primarily due to the provision for loan losses recorded in 1996 and the
decrease for the three months was primarily due to a decrease in
interest income in 1997 due to the cessation of the interest accrual on
the Sierra loan.
Revenues decreased for both the three and nine months ended September
30, 1997 compared to the same periods in 1996. The decrease was
primarily a result of the decrease in interest income due to the
cessation of the accrual of interest on the Sierra loan.
<PAGE>
Costs and expenses decreased for both the three months and the nine
months ended September 30, 1997. The decrease was due to a decrease in
the provision for loan losses for the nine months and a decrease in
general and administrative costs for both periods. General and
administrative costs decreased as a result of a decrease in payroll
costs in 1997 coupled with 1996 actual payroll costs being less than
anticipated in 1997.
Inflation has not had a material effect on the Partnership's recent
operations or financial condition and is not expected to have a
material effect in the future.
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits: None
(b) Reports on Form 8-K: A Form 8-K was filed on August 7, 1997.
<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.
RESOURCES ACCRUED MORTGAGE
INVESTORS 2 L.P.
By: RAM Funding, Inc.
Managing General Partner
Dated: November 19, 1997 By: /s/ Richard Sabella
-------------------
Richard Sabella
President
(Duly Authorized Officer)
Dated: November 19, 1997 By: /s/ Kevin Reardon
-------------------
Kevin Reardon
Vice President, Secretary and
Treasurer
(Principal Financial and
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary information extracted from the financial
statements of the September 30, 1997 Form 10-Q of Resources Accrued Mortgage
Investors 2 L.P. and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 2,912,738
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,912,738
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 19,528,771
<CURRENT-LIABILITIES> 91,911
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 19,436,860
<TOTAL-LIABILITY-AND-EQUITY> 19,528,771
<SALES> 0
<TOTAL-REVENUES> 140,136
<CGS> 0
<TOTAL-COSTS> 73,494
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 66,642
<INCOME-TAX> 0
<INCOME-CONTINUING> 66,642
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 66,642
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
