College and University
Facility Loan Trust One
================================================================================
Compiled Financial Statements
Six Months Ended May 31, 1997
<PAGE>
Accountants' Compilation Report
To the Owner Trustee of
College and University Facility
Loan Trust One:
We have compiled the accompanying balance sheet of College and University
Facility Loan Trust One, including the schedule of investments, as of May 31,
1997, and the related statements of operations, cash flows, changes in net
assets and financial highlights for the six months then ended, in accordance
with standards established by the American Institute of Certified Public
Accountants. The financial information for the years ended November 30, 1996,
1995, 1994, 1993, 1992, presented herein for comparative purposes, was audited
by other auditors whose report thereon dated December 27, 1996 expressed an
unqualified opinion.
A compilation is limited to presenting in the form of financial statements
information that has been obtained from the books and records of the Trust. We
have not audited or reviewed the accompanying financial statements or
supplemental material and, accordingly, do not express an opinion or any other
form of assurance on them.
We are not independent with respect to College and University Facility Loan
Trust One.
BDO Seidman, LLP
July 28, 1997
<PAGE>
<TABLE>
<CAPTION>
College and University
Facility Loan Trust One
Balance Sheet
================================================================================================
May 31, 1997
================================================================================================
(Unaudited)
<S> <C>
Assets
Investments, at amortized cost, net of allowance for possible loan losses
of $825,000 (Notes 1, 2, 6, 7 and 8 and Schedule of Investments) $87 059 959
Cash 45 377
Prepaid expenses 11 352
Interest receivable 1 146 991
Deferred bond issuance costs (Note 2) 1 014 262
- ------------------------------------------------------------------------------------------------
Total assets 89 277 941
- ------------------------------------------------------------------------------------------------
Liabilities
Bonds payable (Notes 3 and 8) 71 488 015
Interest payable (Note 3) 3 711 648
Accrued expenses and other liabilities 171 737
Payable for redemption of Class A Preferred Certificates (Note 5) 730 142
Dividend payable (Note 5) 282 702
- ------------------------------------------------------------------------------------------------
Total liabilities 76 384 244
- ------------------------------------------------------------------------------------------------
Net Assets
Class A Preferred Certificates, par value $1 - authorized and outstanding-
3,537,057 certificates (preference as to annual dividends of 13.25%,
mandatory redemption and liquidation at par value) (Note 5) 3 537 057
- ------------------------------------------------------------------------------------------------
Class B Certificates, par value $1 - authorized, issued
and outstanding - 1,001,643 certificates (Note 5) 1 001 643
Accumulated deficit (Note 2) (790 618)
Paid-in capital (Note 2) 9 145 615
- ------------------------------------------------------------------------------------------------
Total net assets applicable to Class B certificateholders 9 356 640
- ------------------------------------------------------------------------------------------------
Total net assets $12 893 697
================================================================================================
Net asset value per Class B certificate
(based on 1,001,643 certificates outstanding) $9.34
================================================================================================
</TABLE>
See accompanying accountants' compilation
report and notes to financial statements.
3
<PAGE>
College and University
Facility Loan Trust One
Statement of Operations
================================================================================
Six months ended May 31, 1997
================================================================================
(Unaudited)
Investment income:
Interest income (Note 2) $4 614 973
- --------------------------------------------------------------------------------
Expenses:
Interest expense (Note 3) 3 787 811
Servicer fees (Note 4) 40 731
Trustee fees (Note 4) 21 187
Other trust and bond administration expenses 125 387
- --------------------------------------------------------------------------------
Total expenses 3 975 116
- --------------------------------------------------------------------------------
Net investment income 639 857
Provision for possible loan losses (Notes 2 and 6) 100 000
- --------------------------------------------------------------------------------
Net increase in net assets resulting from operations 539 857
Dividends to Class A Preferred Certificateholders 282 702
- --------------------------------------------------------------------------------
Net increase in net assets applicable to Class B
certificateholders resulting from operations $257 155
================================================================================
See accompanying accountants' compilation
report and notes to financial statements.
4
<PAGE>
College and University
Facility Loan Trust One
Statement of Cash Flows
================================================================================
Six months ended May 31, 1997
================================================================================
(Unaudited)
Cash flows from operating activities:
Interest received $2 593 853
Interest paid (3 915 484)
Operating expenses paid (260 570)
- --------------------------------------------------------------------------------
Net cash used for operating activities (1 582 201)
- --------------------------------------------------------------------------------
Cash flows from investing activities:
Net decrease in funds held under investment agreements 832 148
Principal payments on Loans 5 621 737
- --------------------------------------------------------------------------------
Net cash provided by investing activities 6 453 885
- --------------------------------------------------------------------------------
Cash flows from financing activities:
Principal repayments on Bonds (3 996 747)
Redemption of Class A Preferred Certificates (604 854)
Dividends to Class A Preferred Certificates (322 773)
- --------------------------------------------------------------------------------
Net cash used for financing activities (4 924 374)
- --------------------------------------------------------------------------------
Net decrease in cash (52 690)
Cash, beginning of period 98 067
- --------------------------------------------------------------------------------
Cash, end of period $45 377
================================================================================
Reconciliation of net increase in net assets resulting from
operations to net cash used for operating activities:
Net increase in net assets resulting from operations $539 857
Provision for possible loan losses 100 000
Decrease in interest receivable 431 533
Increase in prepaid expenses (11 352)
Decrease in accrued expenses and other liabilities (61 913)
Decrease in Bond interest payable (203 835)
Amortization of deferred Bond issuance costs 76 162
Amortization of purchase discount on Loans (2 452 653)
- --------------------------------------------------------------------------------
Net cash used for operating activities $(1 582 201)
================================================================================
See accompanying accountants' compilation
report and notes to financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
College and University
Facility Loan Trust One
Statements of Changes in Net Assets
(Note 2 (f))
===============================================================================================================
Six Months
Ended Year Ended
May 31, November 30,
1997 1996
===============================================================================================================
(Unaudited)
<S> <C> <C>
From operations:
Net investment income $ 639 857 $ 2 697 289
Provision for possible loan losses (100 000) (200 000)
Dividends to certificateholders:
Class A Preferred certificateholders ($.1325 per certificate annually):
From net investment income (282 702) (171 187)
As tax return of capital -- (507 770)
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Class B
certificateholders resulting from operations 257 155 1 818 332
- ---------------------------------------------------------------------------------------------------------------
Capital certificate transactions (Note 5):
Redemptions of Class A Preferred certificates,
(730,142 and 1,109,166 certificates in 1997
and 1996, respectively) (730 142) (1 109 166)
- ---------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
capital certificate transactions (730 142) (1 109 166)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (472 987) 709 166
Net assets:
Beginning of period 13 366 684 12 657 518
- ---------------------------------------------------------------------------------------------------------------
End of period $12 893 697 $13 366 684
===============================================================================================================
</TABLE>
See accompanying accountants' compilation
report and notes to financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
College and University
Facility Loan Trust One
Selected Financial Highlights for Each
Class B Certificate Outstanding
Throughout the Periods Indicated
(Notes 1 and 5)
===================================================================================================================================
For the Six
Months Ended Years Ended November 30,
May 31, -------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
===================================================================================================================================
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 9.08 $ 7.27 $ 6.61 $ 4.41 $ 3.84 $ 2.71
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income .64 2.69 1.77 3.04 1.44 2.13
Provision for possible loan losses (.10) (.20) (.40) (.12) -- --
Dividends to Class A Preferred
Certificateholders:
From net investment income (.28) (.17) (.64) (.42) (.87) (1.00)
As tax return of capital -- (.51) (.07) (.30) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.34 $ 9.08 $ 7.27 $ 6.61 $ 4.41 $ 3.84
===================================================================================================================================
Total investment return (a) N/A N/A N/A N/A N/A N/A
Net assets applicable to
Class A Preferred Certificates,
end of period $3 537 057 $4 267 199 $5 376 365 $5 233 897 $5 997 151 $6 781 396
Net assets applicable to Class B
Certificates, end of period $9 356 640 $9 099 485 $7 281 153 $6 620 384 $4 418 852 $3 843 329
===================================================================================================================================
Ratios and Supplemental Data:
Ratio of expenses to average
net assets applicable to
Class B Certificates 86.15%(b)(c) 103.94%(b) 133.48%(b) 180.25%(b) 274.18%(b) 344.39%(b)
Ratio of net investment income
to average net assets applicable
to Class B certificates 13.87%(c) 32.93% 25.57% 55.24% 35.10% 64.89%
Number of Class B Certificates
outstanding, end of period 1 001 643 1 001 643 1 001 643 1 001 643 1 001 643 1 001 643
</TABLE>
(a) The Trust's investments are recorded at amortized cost as discussed in Note
2. Accordingly, the financial statements do not reflect the market value of
such investments. For this reason, management believes that no meaningful
information can be provided regarding "Total Investment Return" and has not
included information under that heading.
(b) Excluding interest expense, the ratio of expenses to average net assets
applicable to Class B Certificates was 5.71%(c), 6.47%, 7.96%, 11.64%,
13.68% and 16.23% in 1997, 1996, 1995, 1994, 1993 and 1992, respectively.
(c) Annualized.
See accompanying accountants' compilation
report and notes to financial statements.
7
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
1. Organization College and University Facility Loan Trust One (the Trust)
and Business was formed on September 17, 1987 as a business trust under
the laws of the Commonwealth of Massachusetts by a
declaration of trust by State Street Bank and Trust Company,
formerly the Bank of Boston, (the Owner Trustee), not in its
individual capacity but solely as Owner Trustee. The Trust
is registered under the Investment Company Act of 1940 (as
amended) as a diversified, closed-end, management investment
company.
The Trust was formed for the sole purpose of raising funds
through the issuance and sale of bonds (the Bonds). The
Trust commenced operations on September 29, 1987 (the
Closing Date) and issued Bonds in five tranches in the
aggregate principal amount of $126,995,000. The Bonds
constitute full recourse obligations of the Trust. The
collateral securing the Bonds consists primarily of a pool
of college and university facility loans (the Loans) to
various postsecondary educational institutions and funds
held under the indenture (the Indenture) and the investment
agreements. The Loans were originated by or previously
assigned to the United States Department of Education (ED)
under the College Housing Loan Program or the Academic
Facilities Loan Program. The Loans, which have been assigned
to The First National Bank of Chicago (the Bond Trustee),
are secured by various types of collateral, including
mortgages on real estate, general recourse obligations of
the borrowers, pledges of securities and pledges of
revenues. As of the Closing Date, the Loans had a weighted
average stated interest rate of approximately 3.16% and a
weighted average remaining term to maturity of approximately
19.4 years. Payments on the Loans are managed by the Bond
Trustee in various fund accounts and are invested under
investment agreements (see Note 2) as specified in the
Indenture.
See accompanying accountants' compilation report.
8
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
1. Organization All payments on the Loans and earnings under the investment
and agreements and any required transfers from the Expense,
Business Reserve and Liquidity Funds are deposited to the credit of
(Concluded) the Revenue Fund held by the Bond Trustee as defined within,
and in accordance with, the Indenture. On each bond payment
date, amounts on deposit to the credit of the Revenue Fund
are applied in the following order of priority: to pay
amounts due on the Bonds, to pay administrative expenses not
previously paid from the Expense Fund, to fund the Expense
Fund to the Expense Fund Requirement, to fund the Reserve
Fund to the Maximum Reserve Requirement, and to fund the
Liquidity Fund to the Liquidity Fund Requirement. Any funds
remaining in the Revenue Fund on such payment date are paid
to the certificateholders in the order of priority discussed
in Note 5.
On the Closing Date, certificates were issued by the Trust
to ED as partial payments for the Loans. In December 1989,
ED sold, through a private placement, all of its ownership
interest in the Trust.
2. Summary of (a) College and University Facility Loans
Significant
Accounting The Loans were purchased and recorded at a discount below
Policies par. Pursuant to a "no-action letter" that the Trust
received from the Securities and Exchange Commission, the
Loans (included in investments in the accompanying balance
sheet) are being accounted for under the amortized cost
method of accounting. Under this method, the difference
between the cost of each Loan to the Trust and the scheduled
principal and interest payments is amortized, assuming no
prepayments of principal, and included in the Trust's income
by applying the Loan's effective interest rate to the
amortized cost of that Loan. The remaining balance of the
purchase discount on the Loans as of May 31, 1997 was
approximately $41,801,000. As a result of prepayments of
Loans in the six months ended May 31, 1997, additional
interest income of approximately $100,000 was recognized.
See accompanying accountants' compilation report.
9
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
2. Summary of (a) College and University Facility Loans (Continued)
Significant
Accounting The Trust's policy is to discontinue the accrual of interest
Policies on Loans for which payment of principal or interest is 180
(Continued) days or more past due or for such other Loans as considered
necessary by management if collection of interest and
principal is doubtful. When a Loan is placed on nonaccrual
status, all previously accrued but uncollected interest is
reversed against the current period's interest income.
Subsequently, interest income is recorded when received.
Payments are applied to interest first with the balance, if
any, applied to principal. At May 31, 1997, two loans had
been placed on nonaccrual status, as discussed in Note 6.
(b) Other Investments
Other investments, which are included in Investments on the
accompanying balance sheet, consist of two unsecured
investment agreements issued by the Federal National
Mortgage Association bearing fixed rates of interest of 5%
and 8%. These investments are carried at cost. These
investment agreements terminate on the earlier of December
1, 2014 or the date on which the bonds are paid-in-full.
(c) Federal Income Taxes
It is the Trust's policy to comply with the requirements
applicable to a regulated investment company under
Subchapter M of the Internal Revenue Code of 1986, as
amended, and to distribute substantially all of its
investment company taxable income to its certificateholders
each year. Accordingly, no federal or state income tax
provision is required.
For tax purposes, the Loans were transferred to the Trust at
their face values. Accordingly, the accretion of the
purchase discount creates a permanent book-tax difference.
See accompanying accountants' compilation report.
10
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
===============================================================================
2. Summary of (d) Deferred Bond Issuance Costs
Significant
Accounting Deferred Bond issuance costs are being amortized using the
Policies effective interest-rate method, assuming that all mandatory
(Continued) semiannual payments will be made on the term bonds as
discussed in Note 3.
(e) Accounting for Impairment of a Loan and Allowance for
Possible Loan Losses
The Trust accounts for credit losses in accordance with
Statement of Financial Accounting Standards (SFAS) No. 114,
Accounting by Creditors for Impairment of a Loan, as amended
by SFAS No. 118 (hereafter collectively referred to as SFAS
114). SFAS 114 requires that impaired loans, as defined, be
measured based on the present value of the expected future
cash flows discounted at the loan's effective interest rate
or the fair value of the collateral if the loan is
collateral dependent.
Management is responsible for establishing an allowance for
possible loan losses based on its best estimate of losses
that might occur. Ultimate losses may vary from the current
estimate. This estimate is reviewed periodically, and as a
provision to the allowance for possible loan losses becomes
necessary, it is reported in the period in which it becomes
known. Allowances are established for those loans that, in
the opinion of management, are deemed to be impaired and
potentially uncollectible.
The allowance for possible loan losses is based on
management's evaluation of the level of the allowance
required in relation to the estimated loss exposure in the
loan portfolio. Factors considered in evaluating the
adequacy of the allowance include previous loss experience,
current economic conditions and their effect on borrowers,
the performance of individual Loans in relation to contract
terms, adverse situations that may affect the borrower's
ability to pay, and the estimated fair values of collateral.
See accompanying accountants' compilation report.
11
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
2. Summary of The factors discussed above are inherently difficult to
Significant predict. Accordingly, the final outcome of these estimates
Accounting and the ultimate realization of amounts on certain Loans may
Policies vary significantly from the amounts reflected in the
(Continued) accompanying financial statements.
(f) Presentation of Capital Distributions
Capital distributions are accounted for in accordance with
the American Institute of Certified Public Accountants
Statement of Position 93-2, "Determination, Disclosure and
Financial Statement Presentation of Income, Capital Gain and
Return of Capital Distributions by Investment Companies"
(SOP 93-2). SOP 93-2 requires the Trust to report
distributions that are in excess of tax basis earnings and
profits as a tax return of capital and to present the
capital accounts on a basis that approximates the amounts
that are available for future distributions on a tax basis.
As all tax earning and profits have been distributed,
accumulated undistributed net investment income has been
reclassified as paid-in capital as of November 30, 1996.
These reclassifications result from permanent book and tax
differences such as the receipt of tax-exempt interest
income on certain Loans, the related interest expense on the
Bonds, and the accretion of purchase discount on the Loans.
Amounts deducted for the loan loss reserve and dividends
payable are not currently deductible for tax purposes and
have been reclassified as an accumulated deficit. These
reclassifications had no impact on the November 30, 1996 net
investment income or net assets of the Trust.
The Trust expects to have a tax return of capital for the
fiscal year ending November 30, 1997, however, the amount
cannot be reasonably estimated at May 31, 1997. Therefore,
the current period net increase in net assets of $257,155
has been offset against the accumulated deficit.
See accompanying accountants' compilation report.
12
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
2. Summary of (g) Use of Estimates
Significant
Accounting The preparation of financial statements in conformity with
Policies generally accepted accounting principles requires management
(Concluded) to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results
could differ from those estimates.
3. Bonds
The Bonds outstanding at May 31, 1997 consist of the
following:
Principal
Interest Amount
Type Rate Stated Maturity (000s)
================================================================================
Term 10.20% June 1, 2002 $33 911
Term 10.55 December 1, 2014 37 577
- --------------------------------------------------------------------------------
$71 488
================================================================================
The Bonds maturing on June 1, 2002 are being redeemed, in
part, on a pro rata basis by application of mandatory
semiannual payments and, commencing December 1, 2002, the
Bonds maturing on December 1, 2014 will also be redeemed on
a pro rata basis. The redemption price is equal to 100% of
the principal amount to be redeemed plus interest accrued to
the redemption date.
Interest on the Bonds is payable semiannually. On June 2,
1997, the Trust made the mandatory redemption of $3,235,622
on the Bonds maturing on June 1, 2002.
See accompanying accountants' compilation report.
13
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
3. Bonds The aggregate scheduled maturities of the Bonds, including
(Concluded) the scheduled mandatory redemptions at May 31, 1997, are as
follows:
Amount
Fiscal Year (000s)
========================================================
1997 $ 3 236
1998 6 912
1999 6 829
2000 6 168
2001 5 570
Thereafter 42 773
--------------------------------------------------------
Total $71 488
========================================================
The Bonds are not subject to optional redemption by either
the Trust or the bondholders.
In the event the Trust realizes negative cash flows, various
reserve funds have been established and maintained such
that, on or before such bond payment date, such funds may be
used by the Bond Trustee to make any required payments on
the Bonds and to pay operating expenses of the Trust.
As required by the Indenture, the scheduled future cash
flows for Loans that are in default are excluded from the
calculation of the reserve fund requirement. The impact of
excluding Loans in default from the calculation increases
the reserve fund requirement. The cash flows from the June
2, 1997 Bond Payment were sufficient to satisfy the maximum
reserve fund requirement of $8,674,915.
4. Administrative (a) Servicer
Agreements
As compensation for the services provided under the
servicing agreement, General Electric Capital Corporation
(GECC) receives a collection fee. This fee is paid
semiannually with respect to
See accompanying accountants' compilation report.
14
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
4. Administrative each Loan on each date of payment for such Loan. The fee is
Agreements equal to .055 of 1% of the outstanding principal balance of
(Concluded) such Loan divided by the number of payments of principal and
interest for such Loan in a calendar year. For the period
ended May 31, 1997, this fee totaled $37,837. GECC was also
reimbursed for other related expenses of $2,894.
(b) Trustees
As compensation for services provided, the Owner and Bond
Trustees are entitled under the Declaration of Trust and the
Indenture to receive the following fees:
o The Owner Trustee, in its capacities as manager of the
Trust and as Owner Trustee, received fees of $5,975 and
$5,378, respectively, for the six months ended May 31,
1997. In addition, the Owner Trustee was reimbursed
$125 for out-of-pocket expenses.
o The Bond Trustee is entitled to an annual fee equal to
.025 of 1% of the aggregate outstanding principal of
the Bonds on the bond payment date immediately
preceding the date of payment of such fee. The fee is
payable semiannually, in advance, on each bond payment
date. The Bond Trustee is also reimbursed for
out-of-pocket expenses in an amount not to exceed 4% of
the applicable annual fee. For the six months ended May
31, 1997, the fees amounted to $9,352. In addition, the
Bond Trustee was reimbursed $357 for out-of-pocket
expenses.
5. Certificates The certificates comprise two classes, namely 13.25% Class A
Preferred and Class B. The Class A Preferred certificates
have preference over the Class B certificates with respect
to the payment of dividends, rights of redemption and
liquidation payments. Dividends on the Class A Preferred
certificates are payable in cash on each Distribution Date
(defined below) at the rate of 13.25% per annum from amounts
received by the Owner Trustee pursuant to the Declaration of
Trust. To the extent that such amounts are not sufficient to
pay accrued dividends on any Class A Preferred certificates
on any Distribution Date, such
See accompanying accountants' compilation report.
15
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
5. Certificates dividends will be paid in additional certificates of the
(Concluded) Class A Preferred certificates. The Class A Preferred
certificates are required to be redeemed by the Trust, in
whole or in part, on any Distribution Date to the extent of
the amount on deposit to the credit of the Revenue Fund, as
discussed in Note 1, and after all accrued but unpaid
dividends thereon have been paid in full. No distributions
on the Class B certificates may be made until all Class A
Preferred certificates have been fully redeemed. Following
the redemption in full of the Class A Preferred
certificates, on each Distribution Date, the holders of the
Class B certificates will receive amounts paid to the Owner
Trustee pursuant to the Declaration of Trust, pro rata, in
the same proportion that the par value of the certificates
evidenced by each Class B certificate bears to the sum of
the par value of the certificates evidenced by all of the
Class B certificates.
Dividends and other payments are distributed to the
certificateholders, while the Bonds are outstanding, on the
second business day in each June and December (the
Distribution Date) and, after the Bonds are paid in full, on
the first business day of each month.
On June 3, 1997, the Trust paid $1,012,844 to the holders of
the Class A Preferred certificates, of which $282,702 was
for payment of dividends and $730,142 was a redemption of
Class A Preferred certificates. These payments are reflected
as liabilities in the accompanying balance sheet.
The certificateholders shall each be entitled to one vote
per certificate.
6. Allowance for An analysis of the allowance for possible loan losses for
Possible Loan the six months ended May 31, 1997 is summarized as follows:
Losses
Balance, beginning of period $725 000
Provision 100 000
Charge-offs --
-----------------------------------------------------------
Balance, end of period $825 000
===========================================================
See accompanying accountants' compilation report.
16
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
6. Allowance for At May 31, 1997, the recorded investment in loans that are
Possible Loan considered to be impaired under SFAS 114 was approximately
Losses $1,500,000 with a related allowance for possible loan losses
(Concluded) of $579,000.
The average recorded investment in impaired loans during the
six months ended May 31, 1997 was approximately $1,521,000.
For the six months ended May 31, 1997, interest income
recognized on impaired loans was approximately $20,500.
The amortized cost of the loans placed on nonaccrual status
is approximately $1,203,000 at May 31, 1997. See "Accounting
for Impairment of a Loan and Allowance for Possible Loan
Losses" for a discussion of the Trust's impaired loan
accounting policy.
7. Loans Scheduled principal and interest payments on the Loans as of
May 31, 1997, excluding payments for Loans in Default, as
defined in the Indenture, are as follows:
Principal Interest
Payments Payments Total
Fiscal Year (000s) (000s) (000s)
================================================================================
1997 $ 5 479 $ 1 730 $ 7 209
1998 10 562 3 137 13 699
1999 9 929 2 801 12 730
2000 8 721 2 490 11 211
2001 8 181 2 208 10 389
Thereafter 64 334 13 148 77 482
- --------------------------------------------------------------------------------
Total $107 206 $25 514 $132 720
================================================================================
See accompanying accountants' compilation report.
17
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
7. Loans Expected payments may differ from contractual payments
(Continued) because borrowers may prepay or default on their
obligations. Accordingly, actual principal and interest
payments on the Loans may vary significantly from the
scheduled payments.
The following analysis summarizes the stratification of the
loan portfolio by type of collateral and institution as of
May 31, 1997:
Amortized
Number Cost
Type of Collateral of Loans (000s) %
================================================================================
Loans secured by a
first mortgage 140 $32 398 47.3%
Loans not secured by
a first mortgage 90 36 054 52.7
- --------------------------------------------------------------------------------
Total Loans 230 $68 452 100.0%
================================================================================
Amortized
Number Cost
Type of Institution of Loans (000s) %
================================================================================
Private 147 $32 558 47.6%
Public 83 35 894 52.4
- --------------------------------------------------------------------------------
Total Loans 230 $68 452 100.0%
================================================================================
The ability of a borrower to meet future debt service
payments on a Loan will depend on a number of factors
relevant to the financial condition of such borrower,
including, among others, the size and diversity of the
borrower's sources of revenues; enrollment trends;
reputation; management expertise; the availability and
restrictions on the use of endowments and other funds; the
quality and maintenance costs
See accompanying accountants' compilation report.
18
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
7. Loans of the borrower's facilities; and, in the case of some Loans
(Concluded) to public institutions which are obligations of a state, the
financial condition of the relevant state or other
governmental entity and its policies with respect to
education. The ability of a borrower to maintain enrollment
levels will depend on such factors as tuition costs,
geographical location, geographic diversity, quality of the
student body, quality of the faculty and the diversity of
program offerings.
The collateral for Loans that are secured by a mortgage on
real estate generally consists of special purpose
facilities, such as dormitories, dining halls and
gymnasiums, which are integral components of the overall
educational setting. As a result, in the event of borrower
default on a Loan, the Trust's ability to realize the
outstanding balance of the Loan through the sale of the
underlying collateral may be negatively impacted by the
special purpose nature and location of such collateral.
A number of borrowers are currently experiencing adverse
changes in their financial condition due to declining
enrollment, increasing costs and a decline in endowments,
grants, private gifts, and State and Federal funding. Many
of these potentially troubled borrowers are developing and
implementing strategic plans to improve their financial
position; the plans generally include taking actions to
control costs and increase revenues through tuition
increases, fundraising campaigns, higher enrollment and a
reduction of faculty.
Due to the special purpose nature of the borrowers'
properties, the ability of such troubled borrowers to repay
their loans may ultimately be dependent on the future
success of the institutions' programs.
8. Fair Value SFAS No. 107, "Disclosures About Fair Value of Financial
of Financial Instruments," allows for the use of a wide range of
Instruments valuation techniques; therefore, it may be difficult to
compare the Trust's fair value information to public market
information or to other fair value information. Accordingly,
the fair value information presented below does not purport
to represent, and should not be construed to represent, the
underlying "market" value of
See accompanying accountants' compilation report.
19
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
8. Fair Value the Trust's net assets or the amounts that would result from
of Financial the sale or settlement of the related financial instruments.
Instruments Further, as the assumptions inherent in fair value estimates
(Concluded) change, the fair value estimates will change.
Current market prices are not available for most of the
Trust's financial instruments since an active market
generally does not exist for such instruments. In accordance
with the terms of the Indenture, the Trust is required to
hold all of the Loans to maturity and to use the cash flows
therefrom to retire the Bonds. Accordingly, the Trust has
estimated the fair values of its financial instruments using
a discounted cash flow methodology. This methodology is
similar to the approach used at the formation of the Trust
to determine the carrying amounts of these instruments for
financial reporting purposes. In applying the methodology,
the calculations have been adjusted for the change in the
relevant market rates of interest, the estimated duration of
the instruments and an internally developed credit risk
rating of the instruments. All calculations are based on the
scheduled principal and interest payments on the Loans
because the prepayment rate on these loans is not subject to
estimate.
The estimated fair value of each category of the Trust's
financial instruments and the related book value presented
in the accompanying balance sheet as of May 31, 1997 are as
follows:
Book Value Fair Value
(000s) (000s)
================================================================================
Loans $67 627* $ 83 188
Investment Agreements:
Revenue Fund 16 833 15 169
Liquidity Fund 2 600 1 980
- --------------------------------------------------------------------------------
$87 060 $100 337
================================================================================
Bonds $71 488 $ 85 379
================================================================================
* Net of Allowance for Possible Loan Losses of $825,000.
See accompanying accountants' compilation report.
20
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
MAY 31, 1997
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
Outstanding Stated Internal Amortized
Principal Interest Maturity Rate of Cost (Notes
Balance Description Rate % Date Return % 1 and 2)
------- ----------- ------ ---- -------- --------
COLLEGE AND UNIVERSITY LOANS (77.7%)
---------- A ---------
<S> <C> <C> <C> <C>
$ 1,470 Albion College 3.00 10/01/2015 12.51 $ 743
151 Albion College 3.00 11/01/1999 12.74 131
145 Albright College 3.50 05/01/2001 11.70 121
437 Alfred University 3.00 11/01/2007 12.41 282
101 Allegheny College 3.00 07/01/1999 12.73 89
102 Allegheny College 3.50 07/01/2001 12.83 82
570 Alma College 3.00 04/01/2010 11.87 342
350 Alverno College 3.375 10/01/2003 12.52 262
183 American Graduate School of
International Management 3.00 11/01/2010 12.59 106
290 Anderson College 3.00 03/01/2010 13.02 164
1,189 Appalachian State University 3.00-3.625 07/01/2004 11.80 875
36 Arizona State University 2.875 10/01/1997 11.94 34
487 Arizona State University 3.50 10/01/2003 11.72 379
218 Atlantic Union College 3.00 05/01/2023 12.68 91
1,470 Augsburg College 3.00 04/01/2016 12.95 701
838 Azusa Pacific University 3.00 04/01/2017 12.96 388
---------- B ---------
695 Baptist College at Charleston 3.00 03/01/2014 12.96 349
57 Barnard College 3.125 04/01/1999 12.82 50
101 Benedict College 3.00 11/01/2006 12.42 67
31 Bethune-Cookman College 3.00 10/01/2000 12.71 26
343 Birmingham-Southern College 3.00 10/01/2006 12.48 236
500 Birmingham-Southern College 3.00 10/01/2010 12.47 293
166 Black Hills State College 3.00 10/01/2005 11.76 117
120 Black Hills State College 3.00 10/01/2007 11.77 82
939 Boston University 3.00 12/31/2022 11.87 415
217 Bryan College 3.00 02/01/2010 12.68 126
53 Buena Vista College 3.625 02/01/2001 13.45 42
223 Buena Vista College 3.00 11/01/2009 12.41 135
---------- C ---------
2,350 California State University 3.00 11/01/2012 10.57 1,437
649 Carnegie - Mellon University 3.00 11/01/2017 10.45 357
2,075 Case Western Reserve University 3.00 04/01/2016 10.54 1,156
50 Centenary College of Louisiana 2.875 10/01/1999 12.82 44
26 Central Missouri State 2.875 07/01/1997 11.89 25
192 Central Missouri State 3.125 07/01/2000 11.83 163
324 Central Missouri State 3.50 07/01/2001 11.80 265
284 Central Washington University 3.50 10/01/1999 10.99 258
</TABLE>
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
MAY 31, 1997
(Dollar Amounts in Thousands)
(Continued)
<TABLE>
<CAPTION>
Outstanding Stated Internal Amortized
Principal Interest Maturity Rate of Cost (Notes
Balance Description Rate % Date Return % 1 and 2)
------- ----------- ------ ---- -------- --------
<S> <C> <C> <C> <C>
$ 809 Central Washington University 3.75 10/01/2004 11.03 $ 631
52 Chaminade College of Honolulu 3.50 10/01/2002 12.55 41
313 Chaminade College of Honolulu 3.00 10/01/2011 12.47 179
98 Champlain College 3.00 10/01/2010 12.66 56
332 Claflin College 3.00 11/01/2002 12.57 260
135 Clark College 3.00 11/01/1999 12.75 120
1,080 College of Charleston 3.00 07/01/2016 12.02 543
645 College of St. Thomas 3.00 04/01/2017 12.95 322
702 College of the Virgin Islands 3.00 10/01/2004 11.83 512
328 Colorado State University 3.50 04/01/2001 12.17 267
1,200 Colorado State University 3.625 04/01/2005 11.98 866
416 Community College of Rhode Island 3.00 04/01/2018 12.10 203
795 Concordia College 3.00 05/01/2011 12.64 454
96 Contra Costa College 3.00 04/01/2009 12.34 58
70 Cornell University 3.00 11/01/1999 10.84 63
395 Curry College 3.00 04/01/2010 12.74 231
---------- D ---------
35 Dana College 3.50 04/01/2001 13.39 28
345 Daniel Webster College 3.00 04/01/2019 12.99 151
399 Dean Junior College 3.00 04/01/2016 12.96 194
54 Dillard University 3.375 04/01/2002 13.41 43
108 Dillard University 3.00 11/01/2000 12.68 91
30 Dormitory Authority of New York 3.00 07/01/1998 12.77 26
1,280 Drake University 3.00 10/01/2012 12.71 696
140 Drexel University 3.75 05/01/2000 11.72 123
---------- E ---------
512 Eckerd College 3.50 07/01/2003 12.53 383
59 Eckerd College 3.75 03/01/2005 13.04 41
163 Emory University 3.375 07/01/2002 12.59 129
315 Emory University 3.375 03/01/2003 13.25 231
470 Emporia State University 3.00 04/01/2009 12.33 286
---------- F ---------
349 Fairleigh Dickinson University 3.50 11/01/2003 11.66 270
121 Fairleigh Dickinson University 3.00 11/01/2020 12.09 56
38 Findlay College 3.375 07/01/2002 12.56 29
30 Findlay College 3.00 11/01/1997 12.96 29
410 Florida Atlantic University 3.00 07/01/2006 11.85 278
75 Florida Institute of Technology 3.00 02/01/2006 13.17 48
190 Foothill College 3.00 10/01/2006 11.76 130
58 Fort Hays State University 3.00 10/01/1998 11.88 53
314 Fort Hays State University 3.375 10/01/2002 11.74 250
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
MAY 31, 1997
(Dollar Amounts in Thousands)
(Continued)
<TABLE>
<CAPTION>
Outstanding Stated Internal Amortized
Principal Interest Maturity Rate of Cost (Notes
Balance Description Rate % Date Return % 1 and 2)
------- ----------- ------ ---- -------- --------
<S> <C> <C> <C> <C>
$ 61 Fort Lewis College 3.125 10/01/1999 11.84 $ 54
---------- G ---------
819 Gordon College 3.50 04/01/2013 12.84 444
1,430 Grambling State University 3.00-3.75 10/01/2005 11.70 1,032
---------- H ---------
156 Hampshire College 3.00 11/01/2006 12.43 105
770 Harcum Junior College 3.00 11/01/2015 12.44 391
470 Haverford College 3.625 11/01/2013 12.29 266
51 High Point College 3.375 12/01/2002 11.63 39
185 High Point College 3.00 12/01/2007 11.72 117
---------- I ---------
860 Indiana University 3.50 04/01/2000 11.56 737
213 Inter American University of San Juan 2.75-3.00 12/01/2001 11.63 169
1,225 Iowa State University of Ames 3.00 07/01/2007 10.63 845
---------- J ---------
460 Jackson State University 3.00 01/01/2007 12.50 293
82 Jarvis Christian College 3.50 04/01/2001 13.41 65
583 Jarvis Christian College 3.00 04/01/2019 12.96 258
---------- K ---------
46 Kansas Newman College 3.125 04/01/2000 13.71 39
168 Kansas Newman College 3.00 04/01/2006 13.10 109
325 Kansas State University 3.375 04/01/2002 11.79 257
102 Kansas State University 3.50 04/01/2000 11.52 87
253 Kent State University 2.875 12/01/1999 10.01 224
1,480 Kent State University 3.00 12/01/2008 10.55 973
152 Kenyon College 3.00 11/01/1999 10.69 136
89 Kirksville College of Kirksville, Missouri 3.125 12/01/2000 11.63 73
199 Knox College 3.00 05/01/2007 12.72 129
---------- L ---------
8 Lambuth College 3.00 05/01/1998 14.06 7
285 Laredo Junior College 3.00 08/01/2009 11.82 176
142 Lawrence University 3.375 04/01/2002 13.34 108
21 Lincoln College 3.00 12/01/1998 11.63 18
105 Linfield College 3.125 10/01/1999 12.80 91
660 Long Island University 3.00 06/01/2016 12.34 325
808 Long Island University 3.75 10/01/2005 12.42 575
225 Louisiana State University 3.50 07/01/2002 10.50 188
640 Louisiana State University 3.50 04/01/2002 11.10 517
177 Louisiana Tech University 3.50 04/01/2000 12.72 153
170 Loyola University - Mundelein Branch 3.125 10/01/2000 12.70 142
49 Lynchburg College 3.00 11/01/1998 12.83 45
</TABLE>
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
MAY 31, 1997
(Dollar Amounts in Thousands)
(Continued)
<TABLE>
<CAPTION>
Outstanding Stated Internal Amortized
Principal Interest Maturity Rate of Cost (Notes
Balance Description Rate % Date Return % 1 and 2)
------- ----------- ------ ---- -------- --------
<S> <C> <C> <C> <C>
---------- M ---------
$ 480 McKendree College 3.00 04/01/2007 13.07 $ 299
18 Medical College of Wisconsin 3.00 10/01/1997 13.01 17
170 Medical College of Wisconsin 3.00 10/01/1999 12.79 148
51 Merrimack College 2.875 04/01/1999 13.83 44
777 Michigan State University 3.00 05/01/2020 10.96 392
1,555 Middlebury College 3.00 04/01/2018 12.87 791
53 Midland Lutheran College 3.50 04/01/2001 13.41 42
38 Midland Lutheran College 2.875 04/01/1999 13.77 32
132 Mississippi State University 2.75 12/01/1997 10.70 121
405 Mississippi State University 3.50 12/01/2001 10.82 334
120 Mississippi Valley State 3.00 07/01/2008 11.89 78
593 Missouri Southern State College 3.00 12/01/2008 10.56 387
361 Missouri Western State College 3.00 10/01/2008 11.77 232
482 Montclair State College 3.00 07/01/2008 11.32 314
315 Monterey Peninsula College 3.00 10/01/2018 11.95 151
119 Montreat-Anderson College 3.00 12/01/2019 12.19 55
337 Moravian College 3.00 11/01/2000 12.67 281
42 Morehouse College 2.875 07/01/1999 10.48 37
136 Morehouse College 3.375 07/01/2001 10.57 114
1,053 Morris College 3.00 11/01/2013 12.42 581
---------- N ---------
439 New England College 3.625 10/01/2013 12.37 250
1,060 New England College 3.00 04/01/2019 12.96 470
1 North Carolina Agriculture
and Technical State University 3.00 07/01/1997 9.35 1
140 North Carolina Agriculture
and Technical State University 3.75 07/01/2004 10.02 111
35 North Carolina Central University 3.00 11/01/1998 11.83 32
1,220 North Carolina State University 3.00 09/01/2006 8.02 968
168 North Carolina State University 3.00 09/01/1998 6.63 161
112 Northeastern University 3.00 05/01/1999 13.10 97
---------- O ---------
135 Occidental College 3.50 10/01/2001 12.62 109
2,350 Old Dominion University 3.00 06/01/2013 11.70 1,302
154 Ouachita Baptist University 3.375 12/01/2002 11.63 118
---------- P ---------
89 Pacific University 3.50 10/01/2001 12.66 74
108 Pacific University 3.00 11/01/1999 12.75 94
59 Pan American University 3.50 10/01/2000 11.00 52
5 Paul Quinn College 3.00 09/01/1998 8.06 5
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
MAY 31, 1997
(Dollar Amounts in Thousands)
(Continued)
<TABLE>
<CAPTION>
Outstanding Stated Internal Amortized
Principal Interest Maturity Rate of Cost (Notes
Balance Description Rate % Date Return % 1 and 2)
------- ----------- ------ ---- -------- --------
<S> <C> <C> <C> <C>
$ 399 Pittsburg State University 3.75 04/01/2005 12.30 $ 288
496 Point Loma Nazarene College 3.75 04/01/2005 13.05 347
57 Post College 3.00 10/01/1998 12.90 52
106 Providence Hospital 3.375 01/01/2002 11.33 84
710 Purdue University 3.50 07/01/2001 10.26 599
---------- R ---------
13 Reed College 2.875 10/01/1997 13.03 12
293 Riverside Hospital 3.00 04/01/2007 13.09 198
713 Rivier College 3.625 04/01/2014 12.78 384
---------- S ---------
425 San Diego State University 3.00 11/01/2021 11.93 194
885 San Francisco State University 3.00 11/01/2021 11.93 405
1,201 Sarah Lawrence College 3.00 11/01/2021 12.64 528
348 Scripps College 3.00 10/01/2005 12.51 242
150 Simpson College 3.375 07/01/2001 12.18 118
146 South Dakota State University 3.125 04/01/2000 12.76 126
1,565 South Dakota State University 3.00 04/01/2016 12.31 784
52 South Plains Junior College District 3.125 10/01/1999 11.85 46
1,345 Southeast Missouri State 3.50 04/01/2005 12.32 949
306 Southern Arkansas University 3.75 10/01/2004 11.76 232
245 Southern Methodist University 3.00 10/01/1998 12.87 222
49 Southern Nazarene University 3.125 04/01/2000 13.60 40
91 Spring Arbor College 3.00 11/01/2000 12.67 76
189 Springfield College 3.00 05/01/2011 12.59 108
106 St. Augustine's College 3.00 11/01/2001 12.61 86
217 St. Edward's University 3.625 04/01/2013 12.80 119
315 St. Francis College 3.50 05/01/2001 12.88 253
47 St. Mary's University of San Antonio 3.00 10/01/1997 13.01 45
489 St. Mary's University of San Antonio 3.75 11/01/2002 12.47 387
22 St. Michael's College 2.875 04/01/1997 14.19 22
230 St. Michael's College 3.00 04/01/2008 13.06 142
491 Stanford University 3.125 04/01/2002 9.82 432
190 Stanford University 3.00 05/01/1999 9.61 174
971 Stanford University 3.00 05/01/2024 10.40 469
106 Stetson University 3.50 09/01/2001 12.48 88
38 Stillman College 3.00 02/01/2007 13.24 24
2,877 Suomi College (A) 3.00 08/01/2014 12.70 1,048
190 Susquehanna University 3.00 11/01/2006 12.44 127
450 Susquehanna University 3.625 11/01/2014 12.32 250
153 Swarthmore College 3.00 11/01/2013 12.30 81
</TABLE>
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
MAY 31, 1997
(Dollar Amounts in Thousands)
(Continued)
<TABLE>
<CAPTION>
Outstanding Stated Internal Amortized
Principal Interest Maturity Rate of Cost (Notes
Balance Description Rate % Date Return % 1 and 2)
------- ----------- ------ ---- -------- --------
<S> <C> <C> <C> <C>
---------- T ---------
$715 Taylor University 3.00 10/01/2010 12.45 $419
543 Temple University 3.375 11/01/2014 11.99 306
235 Temple University 2.875 05/01/1999 13.18 203
65 Texas Christian University 3.00 04/01/1998 13.97 58
329 Texas College 3.00 04/01/2007 13.09 206
743 Texas Tech University 3.625 03/01/2013 10.80 454
5,295 Texas Tech University 3.375-3.50 03/01/2012 10.83 3,269
136 Tougaloo College 3.00 06/01/2021 12.44 60
866 Tufts University 3.625 10/01/2004 12.47 640
---------- U ---------
22 Union College 3.00 10/01/1997 10.23 21
1,921 University of Alabama 3.00 05/01/2021 12.27 859
112 University of Alaska 3.125 04/01/2001 12.63 91
226 University of Arkansas at Monticello 3.625 04/01/2004 12.40 166
26 University of Arkansas at Little Rock 2.875 04/01/1999 12.01 23
110 University of Chicago 3.00 06/01/1998 12.59 99
43 University of Chicago 3.50 12/01/2001 11.63 34
639 University of Florida 3.00 01/01/1999 12.70 557
1,213 University of Florida 3.00 01/01/2005 12.51 834
1,230 University of Hawaii at Manoa 3.00 10/01/2006 11.76 843
1,482 University of Missouri at Columbia 3.625 05/01/2004 11.63 1,123
22 University of Missouri at Rolla 2.875 05/01/1998 12.01 20
98 University of Missouri at Rolla 3.50 05/01/2003 11.68 77
259 University of Montevallo 3.00 05/01/2023 12.30 111
152 University of Nebraska 3.00 07/01/2013 10.59 90
453 University of North Carolina 3.50 07/01/2002 10.60 369
1,485 University of North Carolina 3.00 01/01/2018 11.49 745
1,840 University of Notre Dame 3.00 04/01/2018 12.95 834
145 University of Pittsburgh 3.00 11/01/1999 9.95 131
311 University of Portland 3.00 04/01/2013 12.95 161
674 University of Rochester 3.375 10/01/2002 10.77 558
1,325 University of Rochester 3.00 10/01/2006 10.92 937
993 University of South Dakota 3.625 10/01/2013 11.74 581
2,455 University of South Florida 3.00 07/01/2013 11.97 1,345
313 University of Steubenville 3.375 04/01/2012 12.88 172
350 University of Steubenville 3.00 04/01/2017 12.96 163
2,999 University of Vermont 3.00 10/01/2019 12.19 1,402
200 University of Washington 3.50 08/01/2000 11.06 172
170 Upsala College (A) 2.75 10/01/1996 12.65 155
770 Utah State University 3.50 04/01/2002 11.76 613
</TABLE>
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
MAY 31, 1997
(Dollar Amounts in Thousands)
(Continued)
<TABLE>
<CAPTION>
Outstanding Stated Internal Amortized
Principal Interest Maturity Rate of Cost (Notes
Balance Description Rate % Date Return % 1 and 2)
------- ----------- ------ ---- -------- --------
<S> <C> <C> <C> <C>
---------- V ---------
$ 1,274 Vanderbilt University 3.00 08/01/2005 10.69 $ 931
828 Vanderbilt University 3.00 06/30/2009 10.39 547
---------- W ---------
325 West Virginia Institute of Technology 3.00 06/01/1999 11.66 284
444 West Virginia Wesleyan College 3.50 05/01/2002 13.43 329
215 Western Carolina University 3.75 11/01/2001 11.67 179
1,470 Western Maryland College 3.00 11/01/2016 12.44 729
205 Western Washington University 3.00 10/01/2007 11.16 139
77 Whittier College 3.50 04/01/2001 13.53 63
---------- X ---------
600 Xavier University 3.00 10/01/2017 12.54 284
-------- -------
$110,253 Total College and University Loans $68,452
--------
Allowance for Possible Loan Losses 825
-------
Net College and University Loans 67,627
-------
INVESTMENT AGREEMENTS (22.3%)
$2,600 FNMA #787 Liquidity Fund 8.00 12/01/2014 8.00 $2,600
16,833 FNMA #786 Revenue Fund 5.00 12/01/2014 5.00 16,833
-------- -------
$19,433 Total Investment Agreements $19,433
-------- -------
$129,686 Total Investments (100.0%) $87,060
======== =======
</TABLE>
(A) This institution has been placed on nonaccrual status as more fully
described in Note 6.
The accompanying notes are an integral part of these financial statements.
27
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the College
and University Facility Loan Trust One May 31, 1997 financial statement and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1997
<PERIOD-END> MAY-31-1997
<INVESTMENTS-AT-COST> 87060
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 1147
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1071
<TOTAL-ASSETS> 89278
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 71488
<OTHER-ITEMS-LIABILITIES> 4896
<TOTAL-LIABILITIES> 76384
<SENIOR-EQUITY> 3537
<PAID-IN-CAPITAL-COMMON> 9145
<SHARES-COMMON-STOCK> 1001643
<SHARES-COMMON-PRIOR> 1001643
<ACCUMULATED-NII-CURRENT> (791)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 12894
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4615
<OTHER-INCOME> 0
<EXPENSES-NET> 3975
<NET-INVESTMENT-INCOME> 640
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 540
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 283
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (473)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 9145
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 3788
<GROSS-EXPENSE> 3975
<AVERAGE-NET-ASSETS> 13130
<PER-SHARE-NAV-BEGIN> 9.08
<PER-SHARE-NII> .64
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .28
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.34
<EXPENSE-RATIO> .30
<AVG-DEBT-OUTSTANDING> 73486
<AVG-DEBT-PER-SHARE> 73.37
</TABLE>
