To State Street Bank and Trust Company,
Owner Trustee of College and University Facility Loan Trust One:
In planning and performing our audit of the financial statements of College and
University Facility Loan Trust One (a Massachusetts business trust) for the year
ended November 30, 1995, we considered its internal control structure, including
procedures for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial statements
and to comply with the requirements of Form N-SAR, not to provide assurance on
the internal control structure.
The management of College and University Facility Loan Trust One is responsible
for establishing and maintaining an internal control structure. In fulfilling
this responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of internal control structure
policies and procedures. Two of the objectives of an internal control structure
are to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition and
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and may not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
November 30, 1995.
This report is intended solely for the information and use of the Owner Trustee
and the Securities and Exchange Commission.
Boston, Massachusetts
December 29, 1995
<PAGE>
COLLEGE AND UNIVERSITY
FACILITY LOAN TRUST ONE
FINANCIAL STATEMENTS
AS OF NOVEMBER 30, 1995
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To State Street Bank and Trust Company (Owner Trustee):
We have audited the accompanying balance sheet of College and University
Facility Loan Trust One (a Massachusetts business trust), including the schedule
of investments, as of November 30, 1995, and the related statements of
operations and cash flows for the year then ended, and the statements of changes
in net assets for each of the two years in the period then ended, and the
selected financial highlights for each of the periods presented. These financial
statements and the selected financial highlights are the responsibility of the
Owner Trustee. Our responsibility is to express an opinion on these financial
statements and the selected financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the selected
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of the Loans and
Investments as of November 30, 1995 by correspondence with General Electric
Capital Corporation and Federal National Mortgage Association, respectively. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and the selected financial highlights
referred to above present fairly, in all material respects, the financial
position of College and University Facility Loan Trust One as of November 30,
1995, and the results of its operations and its cash flows for the year then
ended, and the changes in its net assets for each of the two years in the period
then ended, and the selected financial highlights for the periods presented, in
conformity with generally accepted accounting principles.
Boston, Massachusetts
December 29, 1995
<PAGE>
College and University
Facility Loan Trust One
Balance Sheet
================================================================================
<TABLE>
<CAPTION>
November 30, 1995
=================================================================================================
<S> <C>
Assets
Investments, at amortized cost, net of allowance for possible loan losses
of $525,000 (Notes 1, 2, 6, 7 and 8 and Schedule of Investments) $ 97 705 496
Cash 137 996
Interest receivable 1 264 100
Deferred bond issuance costs (Note 2) 1 253 654
- -------------------------------------------------------------------------------------------------
Total assets $100 361 246
=================================================================================================
Liabilities
Bonds payable (Note 3) $ 82 725 653
Interest payable (Note 3) 4 284 769
Accrued expenses and other liabilities 119 311
Class A redemption payable (Note 5) 204 277
Dividend payable (Note 5) 369 718
- -------------------------------------------------------------------------------------------------
Total liabilities 87 703 728
- -------------------------------------------------------------------------------------------------
Net Assets
Class A Preferred Certificates, par value $1 - authorized and outstanding -
5,376,365 certificates (preference as to annual dividends of 13.25%,
mandatory redemption and liquidation at par value) (Note 5) 5 376 365
- -------------------------------------------------------------------------------------------------
Class B Certificates, par value $1 - authorized, issued
and outstanding - 1,001,643 certificates (Note 5) 1 001 643
Accumulated deficit (525 000)
Paid-in capital (Note 2) 6 804 510
- -------------------------------------------------------------------------------------------------
Total net assets applicable to Class B certificateholders 7 281 153
- -------------------------------------------------------------------------------------------------
Total net assets $ 12 657 518
=================================================================================================
Net asset value per Class B certificate
(based on 1,001,643 certificates outstanding) $7.27
=================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
College and University
Facility Loan Trust One
Statement of Operations
================================================================================
<TABLE>
<CAPTION>
Year Ended November 30, 1995
=================================================================================================
<S> <C>
Investment income:
Interest income (Note 2) $11 055 220
- -------------------------------------------------------------------------------------------------
Expenses:
Interest expense (Note 3) 8 724 397
Amortization of deferred bond issuance costs (Note 2) 176 558
Servicer fees (Note 4) 87 055
Trustee fees (Note 4) 65 668
Other trust and bond administration expenses 224 310
- -------------------------------------------------------------------------------------------------
Total expenses 9 277 988
- -------------------------------------------------------------------------------------------------
Net investment income 1 777 232
Provision for possible loan losses (Notes 2 and 6) (400 000)
- -------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 1 377 232
Dividends to Class A Preferred Certificateholders (716 464)
- -------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Class B
certificateholders resulting from operations $ 660 768
=================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
College and University
Facility Loan Trust One
Statement of Cash Flows
================================================================================
<TABLE>
<CAPTION>
Year Ended November 30, 1995
=================================================================================================
<S> <C>
Cash flows from operating activities:
Interest received $ 5 153 784
Interest paid (9 085 342)
Operating expenses paid (338 147)
- -------------------------------------------------------------------------------------------------
Net cash used for operating activities (4 269 705)
- -------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Net increase in funds held under investment agreements (3 286 971)
Principal payments on Loans 14 587 360
- -------------------------------------------------------------------------------------------------
Net cash provided by investing activities 11 300 389
- -------------------------------------------------------------------------------------------------
Cash flows from financing activities:
Principal repayments on Bonds (7 077 346)
- -------------------------------------------------------------------------------------------------
Net cash used for financing activities (7 077 346)
- -------------------------------------------------------------------------------------------------
Net decrease in cash (46 662)
Cash, beginning of year 184 658
- -------------------------------------------------------------------------------------------------
Cash, end of year $ 137 996
=================================================================================================
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 $ 1 377 232
Provision for possible loan losses 400 000
Decrease in interest receivable 8 742
Increase in accrued expenses and other liabilities 38 887
Decrease in bond interest payable (360 945)
Amortization of deferred Bond issuance costs 176 558
Amortization of purchase discount on Loans (5 910 179)
- -------------------------------------------------------------------------------------------------
Net cash used for operating activities $(4 269 705)
=================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
College and University
Facility Loan Trust One
Statements of Changes in Net Assets
(Note 2 (f))
================================================================================
<TABLE>
<CAPTION>
Years Ended November 30, 1995 1994
=================================================================================================
<S> <C> <C>
From operations:
Net investment income $ 1 777 232 $ 3 049 044
Provision for possible loan losses (400 000) (125 000)
Dividends to certificateholders:
Class A Preferred certificateholders ($.1325 per certificate
annually):
From net investment income (639 242) (418 797)
As tax return of capital (77 222) (303 715)
- -------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Class B
certificateholders resulting from operations 660 768 2 201 532
- -------------------------------------------------------------------------------------------------
Capital certificate transactions (Note 5):
Redemptions of Class A Preferred certificates,
(204,277 and 1,088,455 certificates in 1995 and 1994, respectively) (204 277) (1 088 455)
Issuance of additional 13.25% Class A Preferred
certificates as paid-in-kind dividend (346,746
and 325,201 certificates in 1995 and 1994, respectively) 346 746 325 201
- -------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital certificate transactions 142 469 (763 254)
- -------------------------------------------------------------------------------------------------
Net increase in net assets 803 237 1 438 278
Net assets:
Beginning of year 11 854 281 10 416 003
- -------------------------------------------------------------------------------------------------
End of year $12 657 518 $11 854 281
=================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
College and University
Facility Loan Trust One
Selected Financial Highlights for Each
Class B Certificate Outstanding
Throughout the Periods Indicated
(Notes 1 and 5)
================================================================================
<TABLE>
<CAPTION>
Years Ended November 30, 1995 1994 1993 1992 1991
========================================================================================================
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 6.61 $ 4.41 $ 3.84 $ 2.71 $ 2.06
- --------------------------------------------------------------------------------------------------------
Net investment income 1.77 3.04 1.44 2.13 1.74
Provision for possible loan losses (.40) (.12) -- -- --
Dividends to Class A Preferred
Certificateholders:
From net investment income (.64) (.42) (.87) (1.00) (1.09)
As tax return of capital (.07) (.30) -- -- --
- --------------------------------------------------------------------------------------------------------
Net asset value, end of year $ 7.27 $ 6.61 $ 4.41 $ 3.84 $ 2.71
========================================================================================================
Total investment return (a) N/A N/A N/A N/A N/A
Net assets applicable to
Class A Preferred Certificates,
end of year $5 376 365 $5 233 897 $5 997 151 $6 781 396 $7 695 826
Net assets applicable to Class B
Certificates, end of year $7 281 153 $6 620 384 $4 418 852 $3 843 329 $2 715 563
========================================================================================================
Ratios and Supplemental Data:
Ratio of expenses to average
net assets applicable to
Class B Certificates 133.48%(b) 180.25%(b) 274.18%(b) 344.39%(b) 514.76%(b)
Ratio of net investment income
to average net assets applicable
to Class B Certificates 25.57% 55.24% 35.10% 64.89% 73.17%
Number of Class B Certificates
outstanding, end of period 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 7.96%, 11.64%, 13.68%, 16.23% and
24.94% in 1995, 1994, 1993, 1992 and 1991, respectively.
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
1. Organization
and Business College and University Facility Loan Trust One (the
Trust) was formed on September 17, 1987 as a
business trust under the laws of the Commonwealth
of Massachusetts by a declaration of trust by The
First National Bank of Boston (the Owner Trustee),
not in its individual capacity but solely as Owner
Trustee. During 1995, State Street Bank and Trust
Company replaced The First National Bank of Boston
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,
pending semiannual bond payment dates, are managed
by the Bond Trustee in various fund accounts and
are invested under investment agreements (see Note
2) as specified in the Indenture.
8
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
1. Organization and
Business (Concluded) All payments on the Loans and earnings under the
investment agreements and any required transfers
from the Expense, Reserve and Liquidity Funds are
deposited to the credit of 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. This transaction was accounted for using the
purchase method of accounting, resulting in a new
measurement of the Trust's net assets.
2. Summary of
Significant
Accounting
Policies (a) College and University Facility Loans
The Loans were purchased and recorded at a discount
below 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 November 30, 1995 was
approximately $50,795,000. As a result of
prepayments of Loans in the year ended November 30,
1995, additional interest income of approximately
$282,500 was recognized.
9
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
2. Summary of
Significant
Accounting
Policies
(Continued) (a) College and University Facility Loans
(Continued)
The Trust's policy is to discontinue the accrual of
interest on Loans for which payment of principal or
interest is 180 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 November 30, 1995, 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.
10
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
2. Summary of
Significant
Accounting
Policies
(Continued) (d) Deferred Bond Issuance Costs
Deferred Bond issuance costs are being amortized
using the effective interest-rate method, assuming
that all mandatory 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 Financial Accounting Standards Board issued
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. The
Trust adopted this statement as of December 1,
1994. The adoption of this statement did not have a
material effect on the financial position or
results of operations of the Trust.
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
11
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
2. Summary of
Significant
Accounting
Policies
(Concluded) 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.
The factors discussed above are inherently
difficult to predict. Accordingly, the final
outcome of these estimates and the ultimate
realization of amounts on certain Loans may vary
significantly from the amounts reflected in the
accompanying financial statements.
(f) Presentation of Capital Distributions
On December 1, 1993, the Trust prospectively
adopted the provisions of 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 earnings and profits have been
distributed, accumulated undistributed net
investment income has been reclassified as paid-in
capital. This reclassification results 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. This reclassification had no impact on the
net investment income or net assets of the Trust.
12
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
3. Bonds The Bonds outstanding at November 30, 1995 consist
of the following:
Principal
Interest Amount
Type Rate Stated Maturity (000s)
===================================================
Term 10.20% June 1, 2002 $45 149
Term 10.55 December 1, 2014 37 577
---------------------------------------------------
$82 726
===================================================
The Bonds are being redeemed, in part, on a pro
rata basis by application of mandatory semiannual
payments which commenced June 1, 1994 in the case
of the Bonds maturing on June 1, 2002, and
commencing December 1, 2002 in the case of the
Bonds maturing on December 1, 2014. 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
December 1, 1995, the Trust made the mandatory
redemption of $4,264,672 on the Bonds maturing on
June 1, 2002.
The aggregate scheduled maturities of the Bonds,
including the scheduled mandatory redemptions at
November 30, 1995, are as follows:
13
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
3. Bonds (Concluded) Amount
Fiscal Year (000s)
===================================================
1996 $ 7 241
1997 7 232
1998 6 912
1999 6 829
2000 6 169
Thereafter 48 343
---------------------------------------------------
Total $82 726
===================================================
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 December
1, 1994 and June 1, 1995 Bond Payments were
insufficient to fully fund the maximum reserve
requirement. However, at December 1, 1995, the cash
flows were sufficient to satisfy the maximum
funding requirement of $7,249,868.
4. Administrative
Agreements (a) Servicer
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
14
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
4. Administrative
Agreements
(Concluded) each Loan on each date of payment for such Loan.
The fee is equal to .055 of 1% of the outstanding
principal balance of such Loan divided by the
number of payments of principal and interest for
such Loan in a calendar year. For the period ended
November 30, 1995, this fee totaled $77,194. GECC
was also reimbursed for other related expenses of
$9,861.
(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 $21,450 and $20,255, respectively, for the
year ended November 30, 1995. In addition, the
Owner Trustee was reimbursed $1,323 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 year ended
November 30, 1995, the fees amounted to $21,798.
In addition, the Bond Trustee was reimbursed
$842 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
dividends will be paid in additional certificates
of the Class A Preferred certificates. The Class A
Preferred certificates are required to be
15
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
5. Certificates
(Concluded) 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 December 4, 1995, the Trust paid $573,995 to the
holders of the Class A Preferred certificates, of
which $369,718 was for payment of dividends and
$204,277 was a redemption of Class A Preferred
certificates. These payments are reflected as
liabilities in the accompanying balance sheet. As a
result of the shortfalls in the reserve fund at
December 1, 1994 and June 1, 1995, there was no
cash available for distribution to the
certificateholders, and the Trust issued additional
Class A Preferred certificates to pay the accrued
dividends as follows:
Distribution Payment
Bond Date Date In Kind
===================================================
December 1, 1994 December 2, 1994 $325 201
June 1, 1995 June 2, 1995 $346 746
The certificateholders shall each be entitled to
one vote per certificate.
16
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
6. Allowance for
Possible Loan
Losses An analysis of the allowance for possible loan
losses for the year ended November 30, 1995 is
summarized as follows:
Balance, beginning of year $125 000
Provision 400 000
Charge-offs --
---------------------------------------------------
Balance, end of year $525 000
===================================================
At November 30, 1995, the recorded investment in
loans that are considered to be impaired under SFAS
114 was approximately $1,305,000 with a related
allowance for possible loan losses of $350,000.
The average recorded investment in impaired loans
during the year ended November 30, 1995 was
approximately $1,388,000. For the year ended
November 30, 1995, interest income recognized on
impaired loans was approximately $168,000.
The amortized cost of the loans placed on
nonaccrual status is approximately $1,305,000 at
November 30, 1995. See "Allowance for Possible Loan
Loss and Accounting for Impairment of a Loan" for a
discussion of the Trust's impaired loans.
17
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
7. Loans Scheduled principal and interest payments on the
Loans as of November 30, 1995, excluding payments
for Loans in Default, as defined in the Indenture,
are as follows:
Principal Interest
Payments Payments Total
Fiscal Year (000s) (000s) (000s)
===================================================
1996 $ 11 167 $ 3 940 $ 15 107
1997 10 837 3 581 14 418
1998 10 778 3 233 14 011
1999 10 142 2 891 13 033
2000 8 944 2 573 11 517
Thereafter 75 058 15 869 90 927
---------------------------------------------------
Total $126 926 $32 087 $159 013
===================================================
Expected payments may differ from contractual
payments 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 November 30, 1995:
Amortized
Number Cost
Type of Collateral of Loans (000s) %
===================================================
Loans secured by a
first mortgage 163 $38 038 48.0%
Loans not secured by
a first mortgage 99 41 141 52.0%
---------------------------------------------------
Total Loans 262 $79 179 100.0%
===================================================
18
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
7. Loans
(Continued) Amortized
Number Cost
Type of Institution of Loans (000s) %
===================================================
Private 168 $37 912 47.9%
Public 94 41 267 52.1%
---------------------------------------------------
Total Loans 262 $79 179 100.0%
===================================================
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 of the borrower's facilities;
and, in the case of some Loans 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,
where a restructuring of debt service payments is
not achieved, 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.
19
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
7. Loans
(Concluded) 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
of Financial
Instruments SFAS No. 107, "Disclosures about Fair Value of
Financial Instruments," allows for the use of a
wide range of 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 the
Trust's net assets or the amounts that would result
from the sale or settlement of the related
financial instruments. Further, as the assumptions
inherent in fair value estimates 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
20
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
8. Fair Value
of Financial
Instruments
(Concluded) 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 November 30, 1995 are as follows:
Book Value Fair Value
(000s) (000s)
===================================================
Loans $78 654* $107 761
Investment Agreements:
Revenue Fund 16 555 14 686
Liquidity Fund 2 496 1 698
---------------------------------------------------
$97 705 $124 145
===================================================
Bonds $82 726 $102 904
===================================================
* Net of Allowance for Possible Loan Losses of
$525,000.
21
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
November 30, 1995
(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)
- ----------- ----------------------------------------------- -------- -------- -------- -----------
<C> <S> <C> <C> <C> <C>
COLLEGE AND UNIVERSITY LOANS (80.5%)
---------- A ---------
$1,530 Albion College 3.00 10/01/2015 12.51 $733
198 Albion College 3.00 11/01/1999 12.74 158
215 Albright College 3.50 05/01/2001 11.70 174
470 Alfred University 3.00 11/01/2007 12.41 283
140 Allegheny College 3.00 07/01/1999 12.73 113
122 Allegheny College 3.50 07/01/2001 12.83 91
640 Alma College 3.00 04/01/2010 11.87 374
395 Alverno College 3.375 10/01/2003 12.52 275
199 American Graduate School of
International Management 3.00 11/01/2010 12.59 110
325 Anderson College 3.00 03/01/2010 13.02 179
1,319 Appalachian State University 3.00-3.625 07/01/2004 11.80 909
98 Arizona State University 2.75 10/01/1996 12.02 89
71 Arizona State University 2.875 10/01/1997 11.94 62
552 Arizona State University 3.50 10/01/2003 11.72 402
226 Atlantic Union College 3.00 05/01/2023 12.68 91
1,590 Augsburg College 3.00 04/01/2016 12.95 748
898 Azusa Pacific University 3.00 04/01/2017 12.96 409
---------- B ---------
755 Baptist College at Charleston 3.00 03/01/2014 12.96 371
124 Barnard College 3.125 04/01/1999 12.82 105
68 Beloit College 3.00 11/01/1996 13.12 62
109 Benedict College 3.00 11/01/2006 12.42 68
38 Bethune-Cookman College 3.00 10/01/2000 12.71 29
373 Birmingham-Southern College 3.00 10/01/2006 12.48 237
528 Birmingham-Southern College 3.00 10/01/2010 12.47 290
182 Black Hills State College 3.00 10/01/2005 11.76 122
129 Black Hills State College 3.00 10/01/2007 11.77 81
974 Boston University 3.00 12/31/2022 11.87 419
238 Bryan College 3.00 02/01/2010 12.68 133
78 Buena Vista College 3.625 02/01/2001 13.45 60
237 Buena Vista College 3.00 11/01/2009 12.41 135
---------- C ---------
2,460 California State University 3.00 11/01/2012 10.57 1,428
682 Carnegie - Mellon University 3.00 11/01/2017 10.45 363
2,235 Case Western Reserve University 3.00 04/01/2016 10.54 1,223
67 Centenary College of Louisiana 2.875 10/01/1999 12.82 53
52 Central Missouri State 2.875 07/01/1997 11.89 45
238 Central Missouri State 3.125 07/01/2000 11.83 187
384 Central Missouri State 3.50 07/01/2001 11.80 293
39 Central State College 2.75 12/01/1996 10.66 36
394 Central Washington University 3.50 10/01/1999 10.99 335
899 Central Washington University 3.75 10/01/2004 11.03 661
60 Chaminade College of Honolulu 3.50 10/01/2002 12.55 44
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
November 30, 1995
(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)
- ----------- ----------------------------------------------- -------- -------- -------- -----------
<C> <S> <C> <C> <C> <C>
$330 Chaminade College of Honolulu 3.00 10/01/2011 12.47 $177
106 Champlain College 3.00 10/01/2010 12.66 59
385 Claflin College 3.00 11/01/2002 12.57 278
177 Clark College 3.00 11/01/1999 12.75 141
1,100 College of Charleston 3.00 07/01/2016 12.02 517
665 College of St. Thomas 3.00 04/01/2017 12.95 303
91 College of the Virgin Islands 3.50 11/01/1996 12.02 84
779 College of the Virgin Islands 3.00 10/01/2004 11.83 530
110 Colorado State University 2.75 04/01/1997 12.63 100
476 Colorado State University 3.50 04/01/2001 12.17 375
1,450 Colorado State University 3.625 04/01/2005 11.98 1,015
439 Community College of Rhode Island 3.00 04/01/2018 12.10 207
860 Concordia College 3.00 05/01/2011 12.64 468
109 Contra Costa College 3.00 04/01/2009 12.34 64
110 Cornell University 3.00 11/01/1999 10.84 93
510 CUNY, Queens College 3.00 06/15/2013 11.68 302
433 Curry College 3.00 04/01/2010 12.74 242
---------- D ---------
30 Daemen College 3.00 04/01/1996 13.18 27
51 Dana College 3.50 04/01/2001 13.39 39
365 Daniel Webster College 3.00 04/01/2019 12.99 157
42 David Lipscomb College 3.00 11/01/1996 13.12 38
429 Dean Junior College 3.00 04/01/2016 12.96 204
78 Dillard University 3.375 04/01/2002 13.41 59
135 Dillard University 3.00 11/01/2000 12.68 105
55 Dormitory Authority of New York 3.00 07/01/1998 12.77 41
1,375 Drake University 3.00 10/01/2012 12.71 715
260 Drexel University 3.75 05/01/2000 11.72 222
---------- E ---------
576 Eckerd College 3.50 07/01/2003 12.53 401
71 Eckerd College 3.75 03/01/2005 13.04 48
192 Emory University 3.375 07/01/2002 12.59 141
410 Emory University 3.375 03/01/2003 13.25 290
535 Emporia State University 3.00 04/01/2009 12.33 317
---------- F ---------
394 Fairleigh Dickinson University 3.50 11/01/2003 11.66 286
127 Fairleigh Dickinson University 3.00 11/01/2020 12.09 57
44 Findlay College 3.375 07/01/2002 12.56 32
59 Findlay College 3.00 11/01/1997 12.96 51
445 Florida Atlantic University 3.00 07/01/2006 11.85 282
88 Florida Institute of Technology 3.00 02/01/2006 13.17 55
7 Florida Southern College 3.00 11/01/1996 13.27 6
205 Foothill College 3.00 10/01/2006 11.76 131
87 Fort Hays State University 3.00 10/01/1998 11.88 73
360 Fort Hays State University 3.375 10/01/2002 11.74 267
82 Fort Lewis College 3.125 10/01/1999 11.84 67
</TABLE>
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
November 30, 1995
(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)
- ----------- ----------------------------------------------- -------- -------- -------- -----------
<C> <S> <C> <C> <C> <C>
$25 Fort Worth Christian College 3.00 03/01/1998 13.87 $21
16 Franklin and Marshall College 2.75 05/01/1996 14.53 15
---------- G ---------
894 Gordon College 3.50 04/01/2013 12.84 475
1,575 Grambling State University 3.00-3.75 10/01/2005 11.70 1,071
23 Greenville College 2.875 04/01/1997 14.15 21
---------- H ---------
10 Hamline University 2.75 06/01/1996 12.82 9
169 Hampshire College 3.00 11/01/2006 12.43 105
800 Harcum Junior College 3.00 11/01/2015 12.44 384
490 Haverford College 3.625 11/01/2013 12.29 264
65 High Point College 3.375 12/01/2002 11.63 48
215 High Point College 3.00 12/01/2007 11.72 133
18 Houston Tillotson College 2.75 04/01/1996 14.44 17
2,647 Howard University 3.00 06/01/2013 12.01 1,383
---------- I ---------
1,410 Indiana University 3.50 04/01/2000 11.56 1,170
354 Inter American University of San Juan 2.75-3.00 12/01/2001 11.63 279
1,325 Iowa State University of Ames 3.00 07/01/2007 10.63 865
---------- J ---------
540 Jackson State University 3.00 01/01/2007 12.50 335
118 Jarvis Christian College 3.50 04/01/2001 13.41 90
621 Jarvis Christian College 3.00 04/01/2019 12.96 272
73 John Carroll University 2.75 01/01/1997 14.22 65
---------- K ---------
85 Kansas Newman College 3.125 04/01/2000 13.71 69
198 Kansas Newman College 3.00 04/01/2006 13.10 124
440 Kansas State University 3.375 04/01/2002 11.79 337
164 Kansas State University 3.50 04/01/2000 11.52 136
473 Kent State University 2.875 12/01/1999 10.01 406
1,660 Kent State University 3.00 12/01/2008 10.55 1,060
200 Kenyon College 3.00 11/01/1999 10.69 167
134 Kirksville College of Kirksville, Missouri 3.125 12/01/2000 11.63 106
224 Knox College 3.00 05/01/2007 12.72 138
---------- L ---------
13 Lamar University 2.75 04/01/1996 11.09 12
89 Lambuth College 3.00 05/01/1998 14.06 79
17 Lambuth College 3.00 06/01/1996 12.86 15
303 Laredo Junior College 3.00 08/01/2009 11.82 176
194 Lawrence University 3.375 04/01/2002 13.34 142
41 Lincoln College 3.00 12/01/1998 11.63 34
138 Linfield College 3.125 10/01/1999 12.80 110
685 Long Island University 3.00 06/01/2016 12.34 320
882 Long Island University 3.75 10/01/2005 12.42 588
265 Louisiana State University 3.50 07/01/2002 10.50 209
870 Louisiana State University 3.50 04/01/2002 11.10 682
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
November 30, 1995
(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)
- ----------- ----------------------------------------------- -------- -------- -------- -----------
<C> <S> <C> <C> <C> <C>
$332 Louisiana Tech University 3.50 04/01/2000 12.72 $277
210 Loyola University - Mundelein Branch 3.125 10/01/2000 12.70 161
73 Lynchburg College 3.00 11/01/1998 12.83 61
---------- M ---------
26 Marymount University 3.75 05/01/1996 14.26 25
560 McKendree College 3.00 04/01/2007 13.07 339
34 Medical College of Wisconsin 3.00 10/01/1997 13.01 29
223 Medical College of Wisconsin 3.00 10/01/1999 12.79 177
32 Menlo College 2.875 04/01/1997 14.28 29
108 Merrimack College 2.875 04/01/1999 13.83 89
812 Michigan State University 3.00 05/01/2020 10.96 397
1,713 Middlebury College 3.00 04/01/2018 12.87 861
77 Midland Lutheran College 3.50 04/01/2001 13.41 59
74 Midland Lutheran College 2.875 04/01/1999 13.77 60
386 Mississippi State University 2.75 12/01/1997 10.70 340
582 Mississippi State University 3.50 12/01/2001 10.82 467
130 Mississippi Valley State 3.00 07/01/2008 11.89 79
633 Missouri Southern State College 3.00 12/01/2008 10.56 389
386 Missouri Western State College 3.00 10/01/2008 11.77 233
515 Montclair State College 3.00 07/01/2008 11.32 315
325 Monterey Peninsula College 3.00 10/01/2018 11.95 149
127 Montreat-Anderson College 3.00 12/01/2019 12.19 58
415 Moravian College 3.00 11/01/2000 12.67 318
56 Morehouse College 2.875 07/01/1999 10.48 47
161 Morehouse College 3.375 07/01/2001 10.57 127
1,100 Morris College 3.00 11/01/2013 12.42 557
8 Morris College 3.00 01/01/1996 11.48 8
---------- N ---------
458 New England College 3.625 10/01/2013 12.37 248
1,130 New England College 3.00 04/01/2019 12.96 495
21 North Carolina Agriculture
and Technical State University 3.00 07/01/1997 9.35 19
155 North Carolina Agriculture
and Technical State University 3.75 07/01/2004 10.02 117
54 North Carolina Central University 3.00 11/01/1998 11.83 46
1,325 North Carolina State University 3.00 09/01/2006 8.02 1,010
258 North Carolina State University 3.00 09/01/1998 6.63 240
176 Northeastern University 3.00 05/01/1999 13.10 142
22 Northwest Nazarene College 3.125 04/01/1996 14.42 21
183 Northwest Nazarene College 3.00 11/01/2001 12.60 135
---------- O ---------
160 Occidental College 3.50 10/01/2001 12.62 120
244 Ohio Valley Hospital 3.75 10/01/2005 12.43 163
2,455 Old Dominion University 3.00 06/01/2013 11.70 1,287
179 Ouachita Baptist University 3.375 12/01/2002 11.63 128
</TABLE>
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
November 30, 1995
(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)
- ----------- ----------------------------------------------- -------- -------- -------- -----------
<C> <S> <C> <C> <C> <C>
---------- P ---------
$108 Pacific University 3.50 10/01/2001 12.66 $83
142 Pacific University 3.00 11/01/1999 12.75 113
75 Pan American University 3.50 10/01/2000 11.00 62
10 Paul Quinn College 3.00 09/01/1998 8.06 9
489 Pittsburg State University 3.75 04/01/2005 12.30 343
602 Point Loma Nazarene College 3.75 04/01/2005 13.05 408
84 Post College 3.00 10/01/1998 12.90 70
144 Providence Hospital 3.375 01/01/2002 11.33 111
84 Purdue University 2.75 07/01/1996 7.17 80
82 Purdue University 2.875 07/01/1996 7.06 78
840 Purdue University 3.50 07/01/2001 10.26 670
---------- R ---------
25 Reed College 2.875 10/01/1997 13.03 22
6 Regis College 3.00 11/01/1996 12.71 5
317 Riverside Hospital 3.00 04/01/2007 13.09 195
773 Rivier College 3.625 04/01/2014 12.78 408
33 Russell Sage College 2.75 03/01/1996 14.38 31
---------- S ---------
435 San Diego State University 3.00 11/01/2021 11.93 189
910 San Francisco State University 3.00 11/01/2021 11.93 399
1,251 Sarah Lawrence College 3.00 11/01/2021 12.64 533
383 Scripps College 3.00 10/01/2005 12.51 248
150 Simpson College 3.375 07/01/2001 12.18 106
276 South Dakota State University 3.125 04/01/2000 12.76 229
1,685 South Dakota State University 3.00 04/01/2016 12.31 827
69 South Plains Junior College District 3.125 10/01/1999 11.85 56
1,630 Southeast Missouri State 3.50 04/01/2005 12.32 1,116
341 Southern Arkansas University 3.75 10/01/2004 11.76 243
365 Southern Methodist University 3.00 10/01/1998 12.87 303
81 Southern Nazarene University 3.125 04/01/2000 13.60 64
112 Spring Arbor College 3.00 11/01/2000 12.67 86
205 Springfield College 3.00 05/01/2011 12.59 112
126 St. Augustine's College 3.00 11/01/2001 12.61 94
237 St. Edward's University 3.625 04/01/2013 12.80 128
430 St. Francis College 3.50 05/01/2001 12.88 329
93 St. Mary's University of San Antonio 3.00 10/01/1997 13.01 80
561 St. Mary's University of San Antonio 3.75 11/01/2002 12.47 413
49 St. Michael's College 2.875 04/01/1997 14.19 44
270 St. Michael's College 3.00 04/01/2008 13.06 163
571 Stanford University 3.125 04/01/2002 9.82 465
415 Stanford University 3.00 05/01/1999 9.61 370
1,016 Stanford University 3.00 05/01/2024 10.40 484
128 Stetson University 3.50 09/01/2001 12.48 98
45 Stillman College 3.00 02/01/2007 13.24 28
2,877 Suomi College (A) 3.00 08/01/2014 12.70 1,150
</TABLE>
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
November 30, 1995
(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)
- ----------- ----------------------------------------------- -------- -------- -------- -----------
<C> <S> <C> <C> <C> <C>
$205 Susquehanna University 3.00 11/01/2006 12.44 $127
465 Susquehanna University 3.625 11/01/2014 12.32 244
163 Swarthmore College 3.00 11/01/2013 12.30 83
---------- T ---------
750 Taylor University 3.00 10/01/2010 12.45 410
563 Temple University 3.375 11/01/2014 11.99 300
455 Temple University 2.875 05/01/1999 13.18 375
215 Texas Christian University 3.00 04/01/1998 13.97 185
387 Texas College 3.00 04/01/2007 13.09 236
65 Texas Tech University 3.00 03/01/1996 10.60 62
808 Texas Tech University 3.625 03/01/2013 10.80 485
5,820 Texas Tech University 3.375-3.50 03/01/2012 10.83 3,521
140 Tougaloo College 3.00 06/01/2021 12.44 59
961 Tufts University 3.625 10/01/2004 12.47 662
---------- U ---------
45 Union College 3.00 10/01/1997 10.23 40
2,031 University of Alabama 3.00 05/01/2021 12.27 896
169 University of Alaska 3.125 04/01/2001 12.63 132
276 University of Arkansas at Monticello 3.625 04/01/2004 12.40 195
52 University of Arkansas at Little Rock 2.875 04/01/1999 12.01 44
10 University of Arkansas at Pine Bluff 3.00 11/01/1996 12.14 9
69 University of Chicago 2.75 01/01/1997 14.22 61
165 University of Chicago 3.00 06/01/1998 12.59 136
59 University of Chicago 3.50 12/01/2001 11.63 45
1,119 University of Florida 3.00 01/01/1999 12.70 916
1,478 University of Florida 3.00 01/01/2005 12.51 983
1,335 University of Hawaii at Manoa 3.00 10/01/2006 11.76 856
1,842 University of Missouri at Columbia 3.625 05/01/2004 11.63 1,351
65 University of Missouri at Rolla 2.875 05/01/1998 12.01 57
128 University of Missouri at Rolla 3.50 05/01/2003 11.68 97
272 University of Montevallo 3.00 05/01/2023 12.30 114
162 University of Nebraska 3.00 07/01/2013 10.59 92
559 University of North Carolina 2.875-3.50 07/01/2002 10.60 435
1,585 University of North Carolina 3.00 01/01/2018 11.49 781
1,960 University of Notre Dame 3.00 04/01/2018 12.95 873
190 University of Pittsburgh 3.00 11/01/1999 9.95 161
340 University of Portland 3.00 04/01/2013 12.95 172
784 University of Rochester 3.375 10/01/2002 10.77 609
1,440 University of Rochester 3.00 10/01/2006 10.92 959
1,033 University of South Dakota 3.625 10/01/2013 11.74 575
2,565 University of South Florida 3.00 07/01/2013 11.97 1,328
344 University of Steubenville 3.375 04/01/2012 12.88 185
376 University of Steubenville 3.00 04/01/2017 12.96 172
3,137 University of Vermont 3.00 10/01/2019 12.19 1,420
74 University of Washington 2.75 08/01/1996 12.01 67
245 University of Washington 3.50 08/01/2000 11.06 198
</TABLE>
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
November 30, 1995
(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)
- ----------- ----------------------------------------------- -------- -------- -------- -----------
<C> <S> <C> <C> <C> <C>
$170 Upsala College (A) 2.75 10/01/1996 12.65 $155
1,045 Utah State University 3.50 04/01/2002 11.76 805
---------- V ---------
1,389 Vanderbilt University 3.00 08/01/2005 10.69 954
908 Vanderbilt University 3.00 06/30/2009 10.39 577
---------- W ---------
425 West Virginia Institute of Technology 3.00 06/01/1999 11.66 343
522 West Virginia Wesleyan College 3.50 05/01/2002 13.43 362
255 Western Carolina University 3.75 11/01/2001 11.67 199
1,520 Western Maryland College 3.00 11/01/2016 12.44 713
220 Western Washington University 3.00 10/01/2007 11.16 140
125 Whittier College 3.50 04/01/2001 13.53 99
---------- X ---------
620 Xavier University 3.00 10/01/2017 12.54 279
-------- -------
$129,974 Total College and University Loans $79,179
-------- -------
Allowance for Possible Loan Losses 525
-------
Net College and University Loans $78,654
-------
INVESTMENT AGREEMENTS (19.5%)
$2,496 FNMA #787 Liquidity Fund 8.00 12/01/2014 8.00 $2,496
16,555 FNMA #786 Revenue Fund 5.00 12/01/2014 5.00 16,555
-------- -------
$19,051 Total Investment Agreements $19,051
-------- -------
$149,025 Total Investments (100.0%) $97,705
======== =======
</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.
28
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains financial information extracted from the College and
University Facility Loan Trust One November 30, 1995 financial statements and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-END> NOV-30-1995
<INVESTMENTS-AT-COST> 97705
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 1264
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1392
<TOTAL-ASSETS> 100361
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 82726
<OTHER-ITEMS-LIABILITIES> 4978
<TOTAL-LIABILITIES> 87704
<SENIOR-EQUITY> 5376
<PAID-IN-CAPITAL-COMMON> 6804
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</TABLE>
