College and University
Facility Loan Trust One
================================================================================
Compiled Financial Statements
Six Months Ended May 31, 1998
<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 (the Trust), including the schedule of investments, as
of May 31, 1998, 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,
1997, 1996, 1995, 1994 and 1993, presented herein for comparative purposes, was
audited by other auditors whose report thereon dated January 13, 1998, 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 27, 1998
<PAGE>
College and University
Facility Loan Trust One
Balance Sheet
<TABLE>
<CAPTION>
=============================================================================================
May 31, 1998
=============================================================================================
<S> <C>
Assets
Investments, at amortized cost, net of allowance for possible loan losses
of $1,025,000 (Notes 1, 2, 6, 7 and 8 and Schedule of Investments) $ 79,274,334
Cash 83,362
Prepaid expenses 11,353
Interest receivable 1,051,923
Deferred bond issuance costs (Note 2) 871,933
- ---------------------------------------------------------------------------------------------
Total assets 81,292,905
=============================================================================================
Liabilities
Bonds payable (Notes 3 and 8) 64,611,656
Interest payable (Note 3) 3,360,954
Accrued expenses and other liabilities 264,963
Payable for redemption of Class A Preferred Certificates (Note 5) 451,655
Dividend payable (Note 5) 172,317
- ---------------------------------------------------------------------------------------------
Total liabilities 68,861,545
- ---------------------------------------------------------------------------------------------
Net Assets
Class A Preferred Certificates, par value $1 - authorized and outstanding -
2,511,521 certificates (preference as to annual dividends of 13.25%,
mandatory redemption and liquidation at par value) (Note 5) 2,511,521
- ---------------------------------------------------------------------------------------------
Class B Certificates, par value $1 - authorized, issued
and outstanding - 1,001,643 certificates (Note 5) 1,001,643
Accumulated deficit (Note 2) (818,545)
Paid-in capital (Note 2) 9,736,741
- ---------------------------------------------------------------------------------------------
Total net assets applicable to Class B certificateholders 9,919,839
- ---------------------------------------------------------------------------------------------
Total net assets $ 12,431,360
=============================================================================================
Net asset value per Class B certificate
(based on 1,001,643 certificates outstanding) $ 9.90
=============================================================================================
See accompanying accountants' compilation
report and notes to financial statements.
3
</TABLE>
<PAGE>
College and University
Facility Loan Trust One
Statement of Operations
================================================================================
Six months ended May 31, 1998
================================================================================
Investment income:
Interest income (Note 2) $ 4,269,294
- -------------------------------------------------------------------------------
Expenses:
Interest expense (Note 3) 3,430,122
Servicer fees (Note 4) 29,245
Trustee fees (Note 4) 21,192
Other trust and bond administration expenses 149,678
- -------------------------------------------------------------------------------
Total expenses 3,630,237
- -------------------------------------------------------------------------------
Net investment income 639,057
Provision for possible loan losses (Notes 2 and 6) (100,000)
- -------------------------------------------------------------------------------
Net increase in net assets resulting from operations 539,057
Dividends to Class A Preferred Certificateholders (172,317)
- -------------------------------------------------------------------------------
Net increase in net assets applicable to Class B
certificateholders resulting from operations $ 366,740
================================================================================
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, 1998
================================================================================
Cash flows from operating activities:
Interest received $ 2,080,999
Interest paid (3,546,632)
Operating expenses paid (97,773)
- -------------------------------------------------------------------------------
Net cash used for operating activities (1,563,406)
- -------------------------------------------------------------------------------
Cash flows from investing activities:
Net decrease in funds held under investment agreements 315,148
Principal payments on Loans 5,760,572
- -------------------------------------------------------------------------------
Net cash provided by investing activities 6,075,720
- -------------------------------------------------------------------------------
Cash flows from financing activities:
Principal repayments on Bonds (3,640,737)
Redemption of Class A Preferred Certificates (260,265)
Dividends to Class A Preferred Certificates (573,881)
- -------------------------------------------------------------------------------
Net cash used for financing activities (4,474,883)
- -------------------------------------------------------------------------------
Net increase in cash 37,431
Cash, beginning of period 45,931
- -------------------------------------------------------------------------------
Cash, end of period $ 83,362
================================================================================
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 $ 539,057
Provision for possible loan losses 100,000
Decrease in interest receivable 53,238
Increase in prepaid expenses (11,353)
Increase in accrued expenses and other liabilities 113,693
Decrease in Bond interest payable (185,678)
Amortization of deferred Bond issuance costs 69,168
Amortization of purchase discount on Loans (2,241,531)
- -------------------------------------------------------------------------------
Net cash used for operating activities $(1,563,406)
================================================================================
See accompanying accountants' compilation
report and notes to financial statements.
5
<PAGE>
College and University
Facility Loan Trust One
Statements of Changes in Net Assets
(Note 2(f))
<TABLE>
<CAPTION>
==========================================================================================================
Six Months
Ended Year Ended
May 31, November 30,
1998 1997
==========================================================================================================
<S> <C> <C>
From operations:
Net investment income $ 639,057 $ 1,196,581
Provision for possible loan losses (100,000) (200,000)
Dividends to certificateholders (Notes 2 and 5):
Class A Preferred certificateholders ($.1325 per certificate annually):
From net investment income (172,317) (145,716)
As tax return of capital -- (397,251)
- ----------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Class B
certificateholders resulting from operations 366,740 453,614
- ----------------------------------------------------------------------------------------------------------
Capital certificate transactions (Note 5):
Redemptions of Class A Preferred certificates,
451,655 and 1,304,023 certificates in 1998 and 1997, respectively (451,655) (1,304,023)
- ----------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
capital certificate transactions (451,655) (1,304,023)
- ----------------------------------------------------------------------------------------------------------
Net decrease in net assets (84,915) (850,409)
Net assets:
Beginning of period 12,516,275 13,366,684
- ----------------------------------------------------------------------------------------------------------
End of period $ 12,431,360 $ 12,516,275
==========================================================================================================
See accompanying accountants' compilation
report and notes to financial statements.
6
</TABLE>
<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>
====================================================================================================================================
For the Six
Months Ended Years Ended November 30,
May 31, -------------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.54 $9.08 $7.27 $6.61 $4.41 $3.84
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income .63 1.20 2.69 1.77 3.04 1.44
Provision for possible loan losses (.10) (.20) (.20) (.40) (.12) --
Dividends to Class A Preferred
Certificateholders:
From net investment income (.17) (.15) (.17) (.64) (.42) (.87)
As tax return of capital -- (.39) (.51) (.07) (.30) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $9.90 $9.54 $9.08 $7.27 $6.61 $4.41
====================================================================================================================================
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 $2,511,521 $2,963,176 $4,267,199 $5,376,365 $5,233,897 $5,997,151
Net assets applicable to Class B
Certificates, end of period 9,919,839 $9,553,099 $9,099,485 $7,281,153 $6,620,384 $4,418,852
====================================================================================================================================
Ratios and Supplemental Data:
Ratio of operating expenses to
average net assets applicable to
Class B Certificates 74.57%(b)(c) 83.43%(b) 103.94%(b) 133.48%(b) 180.25%(b) 274.18%(b)
Ratio of net investment income
to average net assets applicable
to Class B certificates 13.13%(c) 12.83% 32.93% 25.57% 55.24% 35.10%
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
(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 operating expenses to average net
assets applicable to Class B Certificates was 5.53%(c), 5.61%, 6.47%,
7.96%, 11.64% and 13.68% in 1998, 1997, 1996, 1995, 1994 and 1993,
respectively.
(c) Annualized.
See accompanying accountants' compilation
report and notes to financial statements.
7
</TABLE>
<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 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 and Business (Continued)
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.
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 May 31, 1998 was approximately $37,337,000. As a result
of prepayments of Loans in the six months ended May 31, 1998, additional
interest income of approximately $90,000 was recognized.
See accompanying accountants' compilation report.
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
other such Loans if management believes the 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, 1998, two loans had been placed on
nonaccrual status, as discussed in Note 6.
(b) Other Investments
Other investments, which are included in Investments in 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 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 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 Significant Accounting Policies (Continued)
(e) Accounting for Impairment of a Loan and Allowance for Possible Loan
Losses (Continued)
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
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 earnings and profits have been distributed, accumulated
undistributed net investment income of $591,126 has been reclassified as
paid-in capital as of November 30, 1997. 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. 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 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, 1998; however, the amount cannot be reasonably
estimated at May 31, 1998. Therefore, the current period net increase in
net assets of $366,740 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 Significant Accounting Policies (Continued)
(g) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management 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, 1998 consist of the following:
<TABLE>
<CAPTION>
Principal
Interest Stated Amount
Type Rate Maturity (000s)
======================================================================================
<S> <C> <C> <C>
Term 10.20% June 1, 2002 $27,035
Term 10.55 December 1, 2014 37,577
- --------------------------------------------------------------------------------------
$64,612
======================================================================================
</TABLE>
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 1, 1998, the Trust made
the mandatory redemption of $3,270,802 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 (Continued)
The aggregate scheduled maturities of the Bonds, including the scheduled
mandatory redemptions at May 31, 1998, are as follows:
Fiscal Year Amount
================================================================================
1998 $ 3,271
1999 6,829
2000 6,169
2001 5,570
2002 5,196
Thereafter 37,577
- --------------------------------------------------------------------------------
Total $64,612
================================================================================
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 1, 1998 Bond Payment were
sufficient to satisfy the maximum funding requirement of $8,270,940.
See accompanying accountants' compilation report.
14
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
4. Administrative Agreements
(a) Servicer
As compensation for the services provided under the servicing agreement,
the GMAC Commercial Mortgage Corporation (GMAC) receives a collection fee.
This fee is paid on each date of payment for each Loan and is equal to .055
of 1% of the outstanding principal balance of such Loan divided by the
number of payments of principal and interest in a calendar year. For the
period ended May 31, 1998, this fee totaled $24,226. GMAC was also
reimbursed for other related expenses of $5,019.
(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, 1998. 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 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, 1998, the fees amounted to
$8,455. In addition, the Bond Trustee was reimbursed $1,259 for
out-of-pocket expenses.
See accompanying accountants' compilation report.
15
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
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 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 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.
See accompanying accountants' compilation report.
16
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
5. Certificates (Continued)
On June 2, 1998, the Trust paid $623,972 to the holders of Class A Preferred
certificates, of which $172,317 was for payment of dividends and $451,655 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 Possible Loan Losses
An analysis of the allowance for possible loan losses for the six months ended
May 31, 1998 is summarized as follows:
Balance, beginning of period $ 925,000
Provision 100,000
Charge-offs --
- -------------------------------------------------------------------------------
Balance, end of period $ 1,025,000
===============================================================================
At May 31, 1998, the recorded investment in loans that are considered to be
impaired under SFAS 114 was approximately $1,089,000 with a related allowance
for possible loan losses of $653,000.
The average recorded investment in impaired loans during the six months ended
May 31, 1998 was approximately $1,151,000. For the six months ended May 31,
1998, no interest income was recognized on impaired loans.
The amortized cost of the loans placed on nonaccrual status is approximately
$1,089,000 at May 31, 1998. See "Accounting for Impairment of a Loan and
Allowance for Possible Loan Losses" for a discussion of the Trust's impaired
loan accounting policy.
See accompanying accountants' compilation report.
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 May 31, 1998,
excluding payments for Loans in Default, as defined in the Indenture, are as
follows:
Principal Interest
Payments Payments Total
Fiscal year (000s) (000s) (000s)
================================================================================
1998 $ 5,264 $ 1,519 $ 6,783
1999 9,705 2,154 11,859
2000 8,671 2,479 11,150
2001 8,131 2,200 10,331
2002 7,334 1,940 9,274
Thereafter 56,986 11,193 68,179
- --------------------------------------------------------------------------------
Total $ 96,091 $ 21,485 $ 117,576
================================================================================
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 May 31, 1998:
Principal Amortized
Number Cost
Type of Collateral of Loans (000s) %
================================================================================
Loans secured by a
first mortgage 131 $29,710 48.1%
Loans not secured by
a first mortgage 84 32,085 51.9%
- --------------------------------------------------------------------------------
Total 215 $61,795 100.0%
================================================================================
See accompanying accountants' compilation report.
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 138 $29,576 47.9%
Public 77 32,219 52.1%
- --------------------------------------------------------------------------------
Total loans 215 $61,795 100.0%
================================================================================
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 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.
See accompanying accountants' compilation report.
19
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
7. Loans (Continued)
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
See accompanying accountants' compilation report.
20
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
================================================================================
8. Fair Value of Financial Instruments (Continued)
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, 1998 are as follows:
Book Value Fair Value
(000s) (000s)
================================================================================
Loans $ 60,770* $ 80,771
Investment Agreements:
Revenue Fund 16,009 17,413
Liquidity Fund 2,495 3,488
- --------------------------------------------------------------------------------
$ 79,274 $ 101,672
================================================================================
Bonds $ 64,612 $ 79,780
================================================================================
* Net of Allowance for Possible Loan Losses of $1,025,000.
See accompanying accountants' compilation report.
21
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
May 31, 1998
(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)
- ---------------- --------------------------------------------------- -------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C>
COLLEGE AND UNIVERSITY LOANS (76.7%)
---------- A ---------
$1,410 Albion College 3.00 10/01/2015 12.51 $731
102 Albion College 3.00 11/01/1999 12.74 93
105 Albright College 3.50 05/01/2001 11.70 91
403 Alfred University 3.00 11/01/2007 12.41 269
61 Allegheny College 3.00 07/01/1999 12.73 56
82 Allegheny College 3.50 07/01/2001 12.83 69
535 Alma College 3.00 04/01/2010 11.87 331
305 Alverno College 3.375 10/01/2003 12.52 237
172 American Graduate School of
International Management 3.00 11/01/2010 12.59 103
270 Anderson College 3.00 03/01/2010 13.02 158
1,054 Appalachian State University 3.00-3.625 07/01/2004 11.80 801
422 Arizona State University 3.50 10/01/2003 11.72 340
212 Atlantic Union College 3.00 05/01/2023 12.68 90
1,410 Augsburg College 3.00 04/01/2016 12.95 690
808 Azusa Pacific University 3.00 04/01/2017 12.96 385
---------- B ---------
665 Baptist College at Charleston 3.00 03/01/2014 12.96 345
22 Barnard College 3.125 04/01/1999 12.82 20
92 Benedict College 3.00 11/01/2006 12.42 63
24 Bethune-Cookman College 3.00 10/01/2000 12.71 21
308 Birmingham-Southern College 3.00 10/01/2006 12.48 219
472 Birmingham-Southern College 3.00 10/01/2010 12.47 286
148 Black Hills State College 3.00 10/01/2005 11.76 110
110 Black Hills State College 3.00 10/01/2007 11.77 76
914 Boston University 3.00 12/31/2022 11.87 412
203 Bryan College 3.00 02/01/2010 12.68 122
40 Buena Vista College 3.625 02/01/2001 13.45 33
209 Buena Vista College 3.00 11/01/2009 12.41 131
---------- C ---------
2,230 California State University 3.00 11/01/2012 10.57 1,396
624 Carnegie - Mellon University 3.00 11/01/2017 10.45 350
1,995 Case Western Reserve University 3.00 04/01/2016 10.54 1,136
33 Centenary College of Louisiana 2.875 10/01/1999 12.82 30
142 Central Missouri State 3.125 07/01/2000 11.83 125
264 Central Missouri State 3.50 07/01/2001 11.80 224
174 Central Washington University 3.50 10/01/1999 10.99 163
714 Central Washington University 3.75 10/01/2004 11.03 573
See accompanying accountants' compilation report and notes to financial
statements.
22
</TABLE>
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
May 31, 1998
(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> <C>
$44 Chaminade College of Honolulu 3.50 10/01/2002 12.55 $36
296 Chaminade College of Honolulu 3.00 10/01/2011 12.47 174
92 Champlain College 3.00 10/01/2010 12.66 55
277 Claflin College 3.00 11/01/2002 12.57 226
91 Clark Atlanta University 3.00 11/01/1999 12.75 83
1,055 College of Charleston 3.00 07/01/2016 12.02 551
600 College of St. Thomas 3.00 04/01/2017 12.95 287
623 College of the Virgin Islands 3.00 10/01/2004 11.83 471
252 Colorado State University 3.50 04/01/2001 12.17 213
1,060 Colorado State University 3.625 04/01/2005 11.98 789
401 Community College of Rhode Island 3.00 04/01/2018 12.10 200
750 Concordia College 3.00 05/01/2011 12.64 442
89 Contra Costa College 3.00 04/01/2009 12.34 55
43 Cornell University 3.00 11/01/1999 10.84 40
370 Curry College 3.00 04/01/2010 12.74 223
---------- D ---------
27 Dana College 3.50 04/01/2001 13.39 22
335 Daniel Webster College 3.00 04/01/2019 12.99 151
384 Dean Junior College 3.00 04/01/2016 12.96 193
41 Dillard University 3.375 04/01/2002 13.41 34
80 Dillard University 3.00 11/01/2000 12.68 70
5 Dormitory Authority of New York 3.00 07/01/1998 12.77 4
1,215 Drake University 3.00 10/01/2012 12.71 681
80 Drexel University 3.75 05/01/2000 11.72 73
---------- E ---------
446 Eckerd College 3.50 07/01/2003 12.53 346
53 Eckerd College 3.75 03/01/2005 13.04 38
134 Emory University 3.375 07/01/2002 12.59 110
265 Emory University 3.375 03/01/2003 13.25 202
435 Emporia State University 3.00 04/01/2009 12.33 273
---------- F ---------
304 Fairleigh Dickinson University 3.50 11/01/2003 11.66 243
118 Fairleigh Dickinson University 3.00 11/01/2020 12.09 55
32 Findlay College 3.375 07/01/2002 12.56 26
375 Florida Atlantic University 3.00 07/01/2006 11.85 263
68 Florida Institute of Technology 3.00 02/01/2006 13.17 46
175 Foothill College 3.00 10/01/2006 11.76 124
29 Fort Hays State University 3.00 10/01/1998 11.88 28
264 Fort Hays State University 3.375 10/01/2002 11.74 217
40 Fort Lewis College 3.125 10/01/1999 11.84 37
See accompanying accountants' compilation report and notes to financial
statements.
23
</TABLE>
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
May 31, 1998
(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> <C>
---------- G ---------
$779 Gordon College 3.50 04/01/2013 12.84 $434
1,285 Grambling State University 3.00-3.75 10/01/2005 11.70 954
---------- H ---------
142 Hampshire College 3.00 11/01/2006 12.43 98
740 Harcum Junior College 3.00 11/01/2015 12.44 386
450 Haverford College 3.625 11/01/2013 12.29 261
43 High Point College 3.375 12/01/2002 11.63 33
170 High Point College 3.00 12/01/2007 11.72 108
---------- I ---------
585 Indiana University 3.50 04/01/2000 11.56 520
150 Inter American University of San Juan 2.75-3.00 12/01/2001 11.63 121
1,125 Iowa State University of Ames 3.00 07/01/2007 10.63 797
---------- J ---------
420 Jackson State University 3.00 01/01/2007 12.50 277
62 Jarvis Christian College 3.50 04/01/2001 13.41 51
564 Jarvis Christian College 3.00 04/01/2019 12.96 256
---------- K ---------
25 Kansas Newman College 3.125 04/01/2000 13.71 22
151 Kansas Newman College 3.00 04/01/2006 13.10 101
265 Kansas State University 3.375 04/01/2002 11.79 218
70 Kansas State University 3.50 04/01/2000 11.52 62
138 Kent State University 2.875 12/01/1999 10.01 126
1,370 Kent State University 3.00 12/01/2008 10.55 925
103 Kenyon College 3.00 11/01/1999 10.69 96
65 Kirksville College of Kirksville, Missouri 3.125 12/01/2000 11.63 55
182 Knox College 3.00 05/01/2007 12.72 122
---------- L ---------
267 Laredo Junior College 3.00 08/01/2009 11.82 170
116 Lawrence University 3.375 04/01/2002 13.34 92
11 Lincoln College 3.00 12/01/1998 11.63 10
71 Linfield College 3.125 10/01/1999 12.80 64
635 Long Island University 3.00 06/01/2016 12.34 320
731 Long Island University 3.75 10/01/2005 12.42 538
185 Louisiana State University 3.50 07/01/2002 10.50 160
520 Louisiana State University 3.50 04/01/2002 11.10 434
97 Louisiana Tech University 3.50 04/01/2000 12.72 87
130 Loyola University - Mundelein Branch 3.125 10/01/2000 12.70 113
25 Lynchburg College 3.00 11/01/1998 12.83 24
See accompanying accountants' compilation report and notes to financial
statements.
24
</TABLE>
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
May 31, 1998
(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> <C>
---------- M ---------
$440 McKendree College 3.00 04/01/2007 13.07 $285
115 Medical College of Wisconsin 3.00 10/01/1999 12.79 104
21 Merrimack College 2.875 04/01/1999 13.83 19
766 Michigan State University 3.00 05/01/2020 10.96 411
1,450 Middlebury College 3.00 04/01/2018 12.87 741
40 Midland Lutheran College 3.50 04/01/2001 13.41 33
19 Midland Lutheran College 2.875 04/01/1999 13.77 17
312 Mississippi State University 3.50 12/01/2001 10.82 266
110 Mississippi Valley State 3.00 07/01/2008 11.89 74
553 Missouri Southern State College 3.00 12/01/2008 10.56 371
336 Missouri Western State College 3.00 10/01/2008 11.77 223
448 Montclair State College 3.00 07/01/2008 11.32 300
305 Monterey Peninsula College 3.00 10/01/2018 11.95 150
115 Montreat-Anderson College 3.00 12/01/2019 12.19 52
257 Moravian College 3.00 11/01/2000 12.67 224
28 Morehouse College 2.875 07/01/1999 10.48 26
110 Morehouse College 3.375 07/01/2001 10.57 95
1,005 Morris College 3.00 11/01/2013 12.42 555
---------- N ---------
419 New England College 3.625 10/01/2013 12.37 245
1,025 New England College 3.00 04/01/2019 12.96 465
125 North Carolina Agriculture
and Technical State University 3.75 07/01/2004 10.02 101
15 North Carolina Central University 3.00 11/01/1998 11.83 14
1,115 North Carolina State University 3.00 09/01/2006 8.02 903
75 North Carolina State University 3.00 09/01/1998 6.63 73
68 Northeastern University 3.00 05/01/1999 13.10 62
---------- O ---------
110 Occidental College 3.50 10/01/2001 12.62 92
2,245 Old Dominion University 3.00 06/01/2013 11.70 1,277
129 Ouachita Baptist University 3.375 12/01/2002 11.63 103
---------- P ---------
70 Pacific University 3.50 10/01/2001 12.66 60
73 Pacific University 3.00 11/01/1999 12.75 66
43 Pan American University 3.50 10/01/2000 11.00 39
440 Point Loma Nazarene College 3.75 04/01/2005 13.05 319
29 Post College 3.00 10/01/1998 12.90 28
See accompanying accountants' compilation report and notes to financial
statements.
25
</TABLE>
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
May 31, 1998
(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> <C>
$86 Providence Hospital 3.375 01/01/2002 11.33 $71
580 Purdue University 3.50 07/01/2001 10.26 505
---------- R ---------
245 Riverside Hospital 3.00 04/01/2007 13.09 161
683 Rivier College 3.625 04/01/2014 12.78 378
---------- S ---------
415 San Diego State University 3.00 11/01/2021 11.93 194
860 San Francisco State University 3.00 11/01/2021 11.93 401
1,166 Sarah Lawrence College 3.00 11/01/2021 12.64 524
313 Scripps College 3.00 10/01/2005 12.51 226
140 Simpson College 3.375 07/01/2001 12.18 118
76 South Dakota State University 3.125 04/01/2000 12.76 69
1,505 South Dakota State University 3.00 04/01/2016 12.31 775
35 South Plains Junior College District 3.125 10/01/1999 11.85 32
1,195 Southeast Missouri State 3.50 04/01/2005 12.32 872
271 Southern Arkansas University 3.75 10/01/2004 11.76 212
125 Southern Methodist University 3.00 10/01/1998 12.87 119
33 Southern Nazarene University 3.125 04/01/2000 13.60 28
69 Spring Arbor College 3.00 11/01/2000 12.67 60
178 Springfield College 3.00 05/01/2011 12.59 105
85 St. Augustine's College 3.00 11/01/2001 12.61 72
207 St. Edward's University 3.625 04/01/2013 12.80 117
240 St. Francis College 3.50 05/01/2001 12.88 201
414 St. Mary's University of San Antonio 3.75 11/01/2002 12.47 339
210 St. Michael's College 3.00 04/01/2008 13.06 134
326 Stanford University 3.125 04/01/2002 9.82 281
70 Stanford University 3.00 05/01/1999 9.61 66
946 Stanford University 3.00 05/01/2024 10.40 465
84 Stetson University 3.50 09/01/2001 12.48 73
34 Stillman College 3.00 02/01/2007 13.24 23
2,871 Suomi College (A) 3.00 08/01/2014 12.70 933
175 Susquehanna University 3.00 11/01/2006 12.44 122
430 Susquehanna University 3.625 11/01/2014 12.32 244
146 Swarthmore College 3.00 11/01/2013 12.30 80
---------- T ---------
675 Taylor University 3.00 10/01/2010 12.45 409
518 Temple University 3.375 11/01/2014 11.99 299
120 Temple University 2.875 05/01/1999 13.18 109
300 Texas College 3.00 04/01/2007 13.09 195
708 Texas Tech University 3.625 03/01/2013 10.80 442
See accompanying accountants' compilation report and notes to financial
statements.
26
</TABLE>
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
May 31, 1998
(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> <C>
$5,020 Texas Tech University 3.375-3.50 03/01/2012 10.83 $3,174
132 Tougaloo College 3.00 06/01/2021 12.44 59
766 Tufts University 3.625 10/01/2004 12.47 586
---------- U ---------
1,866 University of Alabama 3.00 05/01/2021 12.27 853
82 University of Alaska 3.125 04/01/2001 12.63 69
196 University of Arkansas at Monticello 3.625 04/01/2004 12.40 149
13 University of Arkansas at Little Rock 2.875 04/01/1999 12.01 12
55 University of Chicago 3.00 06/01/1998 12.59 52
35 University of Chicago 3.50 12/01/2001 11.63 29
235 University of Florida 3.00 01/01/1999 12.70 212
1,073 University of Florida 3.00 01/01/2005 12.51 766
1,120 University of Hawaii at Manoa 3.00 10/01/2006 11.76 793
1,282 University of Missouri at Columbia 3.625 05/01/2004 11.63 1,001
82 University of Missouri at Rolla 3.50 05/01/2003 11.68 66
252 University of Montevallo 3.00 05/01/2023 12.30 110
145 University of Nebraska 3.00 07/01/2013 10.59 88
382 University of North Carolina 3.50 07/01/2002 10.60 321
1,430 University of North Carolina 3.00 01/01/2018 11.49 732
1,780 University of Notre Dame 3.00 04/01/2018 12.95 829
100 University of Pittsburgh 3.00 11/01/1999 9.95 93
296 University of Portland 3.00 04/01/2013 12.95 158
559 University of Rochester 3.375 10/01/2002 10.77 478
1,210 University of Rochester 3.00 10/01/2006 10.92 883
948 University of South Dakota 3.625 10/01/2013 11.74 568
2,340 University of South Florida 3.00 07/01/2013 11.97 1,315
297 University of Steubenville 3.375 04/01/2012 12.88 168
337 University of Steubenville 3.00 04/01/2017 12.96 161
2,903 University of Vermont 3.00 10/01/2019 12.19 1,389
150 University of Washington 3.50 08/01/2000 11.06 134
170 Upsala College (A) 2.75 10/01/1996 12.65 155
625 Utah State University 3.50 04/01/2002 11.76 515
---------- V ---------
1,149 Vanderbilt University 3.00 08/01/2005 10.69 866
772 Vanderbilt University 3.00 06/30/2009 10.39 524
---------- W ---------
220 West Virginia Institute of Technology 3.00 06/01/1999 11.66 200
393 West Virginia Wesleyan College 3.50 05/01/2002 13.43 308
175 Western Carolina University 3.75 11/01/2001 11.67 151
1,420 Western Maryland College 3.00 11/01/2016 12.44 725
See accompanying accountants' compilation report and notes to financial
statements.
27
</TABLE>
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
May 31, 1998
(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> <C>
$190 Western Washington University 3.00 10/01/2007 11.16 $133
53 Whittier College 3.50 04/01/2001 13.53 46
---------- X ---------
580 Xavier University 3.00 10/01/2017 12.54 282
- ---------------- ---------
99,132 Total College and University Loans 61,795
- ----------------
Allowance for Possible Loan Losses 1,025
---------
Net College and University Loans 60,770
---------
INVESTMENT AGREEMENTS (23.3%)
2,495 FNMA #787 Liquidity Fund 8.00 12/01/2014 8.00 2,495
16,009 FNMA #786 Revenue Fund 5.00 12/01/2014 5.00 16,009
- ---------------- ---------
18,504 Total Investment Agreements 18,504
- ---------------- ---------
$117,636 Total Investments (100.0%) $79,274
================ =========
(A) These institutions have been placed on nonaccrual status as more fully
described in Note 6.
See accompanying accountants' compilation report and notes to financial
statements.
28
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the College
and University Facility Loan Trust One May 31, 1998 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-30-1998
<PERIOD-END> MAY-31-1998
<INVESTMENTS-AT-COST> 79274
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 1052
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1071
<TOTAL-ASSETS> 81293
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 64612
<OTHER-ITEMS-LIABILITIES> 4250
<TOTAL-LIABILITIES> 68862
<SENIOR-EQUITY> 2512
<PAID-IN-CAPITAL-COMMON> 9737
<SHARES-COMMON-STOCK> 1001643
<SHARES-COMMON-PRIOR> 1001643
<ACCUMULATED-NII-CURRENT> (819)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 12431
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4269
<OTHER-INCOME> 0
<EXPENSES-NET> 3630
<NET-INVESTMENT-INCOME> 639
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 539
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 172
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (85)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 9737
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 3430
<GROSS-EXPENSE> 3630
<AVERAGE-NET-ASSETS> 12473
<PER-SHARE-NAV-BEGIN> 9.54
<PER-SHARE-NII> .63
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .17
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.90
<EXPENSE-RATIO> .29
<AVG-DEBT-OUTSTANDING> 66432
<AVG-DEBT-PER-SHARE> 66.32
</TABLE>
