Year 2000
The services provided to the Trust by the Owner Trustee, the Bond
Trustee and the Servicer, as well as the ability of the colleges and
universities to repay their loans owned by the Trust, depend on the smooth
functioning of their computer systems and those of their outside service
providers. Many computer software systems in use today cannot distinguish the
Year 2000 from the Year 1900 because of the way dates are encoded and
calculated.
The failure of any computer system used by key service providers to the
Trust to properly distinguish the Year 2000 could impact the ability of the
Trust to receive and process loan payments, receive or remit funds or invest its
funds, among other services which it obtains from its service providers. The
failure of any computer system used by significant borrowers could impact their
ability to make loans payments in accordance with the terms of their loan
documents. The Trust cannot control the Year 2000 compliance programs of its key
service providers or significant borrowers.
The Trust will evaluate the reports received periodically from its key
service providers to monitor their progress toward Year 2000 compliance. In the
event the Trust receives information that indicates there is a material
potential for not receiving compliant services from these providers, the Trust
intends to develop appropriate contingency plans. At this time there can be no
assurance that there will be no adverse impact on the Trust. The obligation to
make any necessary adaptations to their computer systems to prepare for the Year
2000 is the responsibility of the service provider that maintains the system.
The Trust does not expect to incur any material expense in that regard.
The Trust will evaluate the reports received periodically from the
various significant borrowers. The Trust has received no information from any
significant borrowers of any prospective inability to make the loan payments due
the Trust on account of Year 2000 compliance issues. The Trust can give no
assurances that the ability of the colleges and universities to repay the loans
owned by the Trust will not be affected by Year 2000 issues. In the event loan
payments are not received in a timely manner, payment to certificateholders
and/or bondholders may be impaired.
<PAGE>
College and University
Facility Loan Trust One
-------------------------------------------
Compiled Financial Statements
Six Months Ended May 31, 1999
<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, 1999, 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,
1998, 1997, 1996, 1995 and 1994, presented herein for comparative purposes, was
audited by other auditors whose report thereon dated January 29, 1999, 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.
/s/ BDO Seidman, LLP
July 26, 1999
<PAGE>
College and University
Facility Loan Trust One
Balance Sheet
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
May 31, 1999
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Assets
Investments, at amortized cost, net of allowance for possible loan losses
of $1,125,000 (Notes 1, 2, 6, 7 and 8 and Schedule of Investments) $ 71,534,313
Cash 47,267
Prepaid expenses 11,353
Interest receivable 950,071
Deferred bond issuance costs (Note 2) 744,837
- ---------------------------------------------------------------------------------------------------------------------------
Total assets 73,287,841
- ---------------------------------------------------------------------------------------------------------------------------
Liabilities
Bonds payable (Notes 3 and 8) 57,666,859
Interest payable (Note 3) 3,006,770
Accrued expenses and other liabilities 161,059
Dividend payable (Note 5) 114,391
Payable for redemption of Class A Preferred Certificates (Note 5) 482,142
- ---------------------------------------------------------------------------------------------------------------------------
Total liabilities 61,431,221
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets
Class A Preferred Certificates, par value $1 - authorized and outstanding -
1,244,520 certificates (preference as to annual dividends of 13.25%,
mandatory redemption and liquidation at par value) (Note 5) 1,244,520
- ---------------------------------------------------------------------------------------------------------------------------
Class B Certificates, par value $1 - authorized, issued
and outstanding - 1,001,643 certificates (Note 5) 1,001,643
Accumulated deficit (Note 2) (126,283)
Paid-in capital (Note 2) 9,736,740
- ---------------------------------------------------------------------------------------------------------------------------
Total net assets applicable to Class B certificateholders 10,612,100
- ---------------------------------------------------------------------------------------------------------------------------
Total net assets $ 11,856,620
===========================================================================================================================
Net asset value per Class B certificate
(based on 1,001,643 certificates outstanding) $ 10.59
===========================================================================================================================
</TABLE>
See accompanying accountants' compilation report and notes to
financial statements.
3
<PAGE>
College and University
Facility Loan Trust One
Statement of Operations
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Six months ended May 31, 1999
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Interest income (Note 2) $ 3,801,585
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Interest expense (Notes 2 and 3) 3,068,108
Servicer fees (Note 4) 12,737
Trustee fees (Note 4) 21,168
Other trust and bond administration expenses 139,605
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses 3,241,618
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income 559,967
Provision for loan losses (Notes 2 and 6) -
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 559,967
Dividends to Class A Preferred Certificateholders (114,391)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Class B
certificateholders resulting from operations $ 445,576
===========================================================================================================================
</TABLE>
See accompanying accountants' compilation report and notes to
financial statements.
4
<PAGE>
College and University
Facility Loan Trust One
Statement of Cash Flows
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Six months ended May 31, 1999
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Cash flows from operating activities:
Interest received $ 1,900,713
Interest paid (3,194,143)
Operating expenses paid (181,202)
- ---------------------------------------------------------------------------------------------------------------------------
Net cash used for operating activities (1,474,632)
- ---------------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Net increase in funds held under investment agreements 1,144,094
Principal payments on Loans 4,923,050
- ---------------------------------------------------------------------------------------------------------------------------
Net cash provided by investing activities 6,067,144
- ---------------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
Principal repayments on Bonds (3,673,995)
Redemption of Class A Preferred Certificates (784,860)
Dividends to Class A Preferred Certificates (166,388)
- ---------------------------------------------------------------------------------------------------------------------------
Net cash used for financing activities (4,625,243)
- ---------------------------------------------------------------------------------------------------------------------------
Net decrease in cash (32,731)
Cash, beginning of period 79,998
- ---------------------------------------------------------------------------------------------------------------------------
Cash, end of period $ 47,267
===========================================================================================================================
Reconciliation of net decrease in net assets resulting from operations to net
cash used for operating activities:
Net increase in net assets resulting from operations $ 559,967
Decrease in interest receivable 62,211
Increase in prepaid expenses (11,353)
Increase in accrued expenses and other liabilities 3,657
Decrease in Bond interest payable (187,373)
Amortization of deferred Bond issuance costs 61,338
Amortization of purchase discount on Loans (1,963,079)
- ---------------------------------------------------------------------------------------------------------------------------
Net cash used for operating activities $ (1,474,632)
===========================================================================================================================
</TABLE>
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,
1999 1998
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
From operations:
Net investment income $ 559,967 $ 1,152,132
Provision for loan losses - (200,000)
Dividends to certificateholders (Notes 2 and 5):
Class A Preferred certificateholders ($.1325 per certificate annually):
From net investment income (114,391) (42,568)
As tax return of capital - (296,137)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Class B
certificateholders resulting from operations 445,576 613,427
- ---------------------------------------------------------------------------------------------------------------------------
Capital certificate transactions (Note 5):
Redemptions of Class A Preferred certificates (482,142 and
1,236,516 certificates in 1999 and 1998, respectively) (482,142) (1,236,516)
- ---------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from capital certificate
transactions (482,142) (1,236,516)
- ---------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets (36,566) (623,089)
Net assets:
Beginning of period 11,893,186 12,516,275
- ---------------------------------------------------------------------------------------------------------------------------
End of period $ 11,856,620 $ 11,893,186
===========================================================================================================================
</TABLE>
See accompanying accountants' compilation report and notes to
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>
- ---------------------------------------------------------------------------------------------------------------------------
For the Six
Months Ended Years Ended November 30,
May 31, --------------------------------------------------------------------
1999 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.15 $ 9.54 $9.08 $7.27 $6.61 $4.41
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income .56 1.15 1.20 2.69 1.77 3.04
Provision for loan losses - (.20) (.20) (.20) (.40) (.12)
Dividends to Class A Preferred
Certificateholders:
From net investment income (.12) (.04) (.15) (.17) (.64) (.42)
As tax return of capital - (.30) (.39) (.51) (.07) (.30)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.59 $10.15 $9.54 $9.08 $7.27 $6.61
===============================================================================================================================
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 $ 1,244,520 $ 1,726,662 $2,963,176 $4,267,199 $5,376,365 $5,233,897
Net assets applicable to
Class B Certificates,
end of period $10,612,100 $10,166,524 $9,553,099 $9,099,485 $7,281,153 $6,620,384
===============================================================================================================================
Ratios and Supplemental Data:
Ratio of operating expenses to
average net assets applicable to
Class B Certificates 62.40%(b)(c) 71.95%(b) 83.43%(b) 103.94%(b) 133.48%(b) 180.25%(b)
Ratio of net investment income
to average net assets applicable
to Class B Certificates 10.78%(c) 11.69% 12.83% 32.93% 25.57% 55.24%
Number of Class B Certificates
outstanding, end of period 1,001,643 1,001,643 1,001,643 1,001,643 1,001,643 1,001,643
</TABLE>
(a) The Trust's investments are recorded at amortized cost as discussed in Note
2. Accordingly, the financial statements do not reflect the market value of
such investments. For this reason, management believes that no meaningful
information can be provided regarding "Total Investment Return" and has not
included information under that heading.
(b) Excluding interest expense, the ratio of operating expenses to average net
assets applicable to Class B Certificates was 3.34%(c), 2.73%, 2.40%,
4.48%, 5.42% and 5.98% in 1999, 1998, 1997, 1996, 1995 and 1994,
respectively.
(c) Annualized.
See accompanying accountants' compilation report and notes to
financial statements.
7
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Organization College and University Facility Loan Trust One (the
and Business 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 All payments on the Loans and earnings under the
and Business investment agreements and any required transfers from
(Continued) 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 (a) College and University Facility Loans
Significant
Accounting The Loans were purchased and recorded at a discount
Policies 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, 1999
was approximately $33,310,000.
See accompanying accountants' compilation report.
9
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
- --------------------------------------------------------------------------------
2. Summary of (a) College and University Facility Loans (Continued)
Significant
Accounting The Trust's policy is to discontinue the accrual of
Policies interest on Loans for which payment of principal or
(Continued) 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, 1999, one Loan 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 (d) Deferred Bond Issuance Costs
Significant
Accounting Deferred Bond issuance costs are being amortized using
Policies the effective interest-rate method, assuming that all
(Continued) 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 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 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
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 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 (e) Accounting for Impairment of a Loan and
Significant Allowance for Loan Losses (Continued)
Accounting
Policies The factors discussed above are inherently difficult to
(Continued) 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.
All tax earnings and profits have been distributed,
therefore all accumulated undistributed net investment
income has been reclassified as paid-in capital as of
November 30, 1998. 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, 1999; however, the
amount cannot be reasonably estimated at May 31, 1999.
Therefore, the current period net increase in net assets
of $445,576 has been offset against the accumulated
deficit.
See accompanying accountants' compilation report.
12
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
- --------------------------------------------------------------------------------
2. Summary of (g) Use of Estimates
Significant
Accounting The preparation of financial statements in conformity
Policies with generally accepted accounting principles requires
(Continued) 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, 1999 consist of the
following:
<TABLE>
<CAPTION>
Principal
Interest Stated Amount
Type Rate Maturity (000s)
-----------------------------------------------------------------
<S> <C> <C> <C>
Term 10.20% June 1, 2002 $ 20,090
Term 10.55 December 1, 2014 37,577
-----------------------------------------------------------------
$ 57,667
-----------------------------------------------------------------
</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, 1999, the Trust made the mandatory redemption of
$3,155,354 on the Bonds maturing on June 1, 2002.
See accompanying accountants' compilation report.
13
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
- --------------------------------------------------------------------------------
3. Bonds The aggregate scheduled maturities of the Bonds,
(Continued) including the scheduled mandatory redemptions at May 31,
1999, are as follows:
<TABLE>
<CAPTION>
Amount
Fiscal Year (000s)
-------------------------------------------
<S> <C>
1999 $ 3,155
2000 6,168
2001 5,570
2002 5,197
2003 4,447
Thereafter 33,130
-------------------------------------------
Total $57,667
-------------------------------------------
</TABLE>
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, 1999 Bond Payment were
sufficient to satisfy the maximum funding requirement of
$7,442,452.
See accompanying accountants' compilation report.
14
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
- --------------------------------------------------------------------------------
4. Administrative (a) Servicer
Agreements
As compensation for the services provided under the
servicing agreement, the GMAC Commercial Mortgage
Corporation (GMAC) receives a collection fee. This fee
is earned 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, 1999, this fee totaled $12,737.
(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 $5,376,
respectively, for the six months ended May
31, 1999. In addition, the Owner Trustee was
reimbursed $1,000 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, 1999, the fees amounted
to $7,591. In addition, the Bond Trustee was
reimbursed $1,226 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.
On June 1, 1999, the Trust paid $596,533 to the holders
of Class A Preferred certificates, of which $114,391 was
for payment of dividends and $482,142 was a redemption
of Class A Preferred certificates. These payments are
reflected as liabilities in the accompanying balance
sheet.
The certificateholders shall each be entitled to one
vote per certificate.
See accompanying accountants' compilation report.
16
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
- --------------------------------------------------------------------------------
6. Allowance for An analysis of the allowance for loan losses for the six
Loan Losses months ended May 31, 1999 is summarized as follows:
<TABLE>
<S> <C>
Balance, beginning of period $1,125,000
Provision -
Charge-offs -
--------------------------------------------------------
Balance, end of period $1,125,000
--------------------------------------------------------
</TABLE>
At May 31, 1999, the recorded investment in loans that
are considered to be impaired under SFAS 114 was
approximately $850,000 with a related allowance for loan
losses of $593,000.
The average recorded investment in impaired loans during
the six months ended May 31, 1999 was approximately
$950,000. For the six months ended May 31, 1999, no
interest income was recognized on impaired loans.
The amortized cost of the loans placed on nonaccrual
status is approximately $850,000 at May 31, 1999. See
Note 2(e), "Accounting for Impairment of a Loan and
Allowance for 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, 1999, excluding payments for Loans in
Default, as defined in the Indenture, are as follows:
<TABLE>
<CAPTION>
Principal Interest
Payments Payments Total
Fiscal year (000s) (000s) (000s)
----------------------------------------------------------------------
<S> <C> <C> <C>
1999 $ 5,091 $ 1,367 $ 6,458
2000 8,671 2,479 11,150
2001 8,131 2,200 10,331
2002 7,333 1,940 9,273
2003 6,539 1,713 8,252
Thereafter 50,257 9,481 59,738
----------------------------------------------------------------------
Total $ 86,022 $ 19,180 $ 105,202
----------------------------------------------------------------------
</TABLE>
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.
As of May 31, 1999, there was one Loan in Default, with
an unpaid principal balance of approximately $2,871,000.
See accompanying accountants' compilation report.
18
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
- --------------------------------------------------------------------------------
7. Loans The following analysis summarizes the stratification of
(Continued) the loan portfolio by type of collateral and institution
as of May 31, 1999:
<TABLE>
<CAPTION>
Amortized
Number Cost
Type of Collateral of Loans (000s) %
---------------------------------------------------------------------------
<S> <C> <C> <C>
Loans secured by a
first mortgage 122 $ 26,837 48.3%
Loans not secured by
a first mortgage 76 28,745 51.7
---------------------------------------------------------------------------
Total Loans 198 $ 55,582 100.0%
---------------------------------------------------------------------------
<CAPTION>
Amortized
Number Cost
Type of Institution of Loans (000s) %
---------------------------------------------------------------------------
<S> <C> <C> <C>
Private 126 $ 26,662 48.0%
Public 72 28,920 52.0
---------------------------------------------------------------------------
Total Loans 198 $ 55,582 100.0%
---------------------------------------------------------------------------
</TABLE>
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.
See accompanying accountants' compilation report.
19
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
- --------------------------------------------------------------------------------
7. Loans The collateral for Loans that are secured by a mortgage
(Continued) on real estate generally consists of special purpose
facilities, such as dormitories, dining halls and
gymnasiums, which are integral components of the overall
educational setting. As a result, in the event of
borrower default on a Loan, the Trust's ability to
realize the outstanding balance of the Loan through the
sale of the underlying collateral may be negatively
impacted by the special purpose nature and location of
such collateral.
A number of borrowers are currently experiencing adverse
changes in their financial condition due to declining
enrollment, increasing costs and a decline in
endowments, grants, private gifts, and State and Federal
funding. Many of these potentially troubled borrowers
are developing and implementing strategic plans to
improve their financial position; the plans generally
include taking actions to control costs and increase
revenues through tuition increases, fundraising
campaigns, higher enrollment and a reduction of faculty.
Due to the special purpose nature of the borrowers'
properties, the ability of such troubled borrowers to
repay their loans may ultimately be dependent on the
future success of the institutions' programs.
8. Fair Value SFAS No. 107, "Disclosures about Fair Value of Financial
of Financial Instruments," allows for the use of a wide range of
Instruments valuation techniques; therefore, it may be difficult to
compare the Trust's fair value information to public
market information or to other fair value information.
Accordingly, the fair value information presented below
does not purport to represent, and should not be
construed to represent, the underlying "market" value of
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.
See accompanying accountants' compilation report.
20
<PAGE>
College and University
Facility Loan Trust One
Notes to Financial Statements
- --------------------------------------------------------------------------------
8. Fair Value Current market prices are not available for most of
of Financial the Trust's financial instruments since an active
Instruments market generally does not exist for such instruments.
(Continued) In accordance with the terms of the Indenture, the
Trust is required to hold all of the Loans to maturity
and to use the cash flows therefrom to retire the Bonds.
Accordingly, the Trust has estimated the fair values of
its financial instruments using a discounted cash flow
methodology. This methodology is similar to the approach
used at the formation of the Trust to determine the
carrying amounts of these instruments for financial
reporting purposes. In applying the methodology, the
calculations have been adjusted for the change in the
relevant market rates of interest, the estimated
duration of the instruments and an internally developed
credit risk rating of the instruments. All calculations
are based on the scheduled principal and interest
payments on the Loans because the prepayment rate on
these loans is not subject to estimate.
The estimated fair value of each category of the Trust's
financial instruments and the related book value
presented in the accompanying balance sheet as of May
31, 1999 are as follows:
<TABLE>
<CAPTION>
Book Value Fair Value
(000s) (000s)
-----------------------------------------------------------
<S> <C> <C>
Loans $54,457* $72,038
Investment Agreements:
Revenue Fund 14,477 15,717
Liquidity Fund 2,600 3,490
-----------------------------------------------------------
$71,534 $91,245
===========================================================
Bonds $57,667 $69,888
===========================================================
</TABLE>
*Net of Allowance for Loan Losses of $1,125,000.
See accompanying accountants' compilation report.
21
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
----------------------------------------------
SCHEDULE OF INVESTMENTS
-----------------------
May 31, 1999
------------
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
Outstanding Stated Internal Amortized
Principal Interest Maturity Rate of Cost (Notes
Balance Description Rate % Date Return % 1 and 2)
----------- ------------------------------------- --------- ---------- -------- ------------
COLLEGE AND UNIVERSITY LOANS (76.1%)
---------- A ---------
<S> <C> <C> <C> <C> <C>
$1,350 Albion College 3.00 10/01/2015 12.51 $720
52 Albion College 3.00 11/01/1999 12.74 49
65 Albright College 3.50 05/01/2001 11.70 58
368 Alfred University 3.00 11/01/2007 12.41 254
20 Allegheny College 3.00 07/01/1999 12.73 19
61 Allegheny College 3.50 07/01/2001 12.83 53
495 Alma College 3.00 04/01/2010 11.87 315
260 Alverno College 3.375 10/01/2003 12.52 210
160 American Graduate School of
International Management 3.00 11/01/2010 12.59 99
250 Anderson College 3.00 03/01/2010 13.02 151
914 Appalachian State University 3.00-3.625 07/01/2004 11.80 718
352 Arizona State University 3.50 10/01/2003 11.72 293
207 Atlantic Union College 3.00 05/01/2023 12.68 90
1,350 Augsburg College 3.00 04/01/2016 12.95 679
778 Azusa Pacific University 3.00 04/01/2017 12.96 381
---------- B ---------
630 Baptist College at Charleston 3.00 03/01/2014 12.96 336
83 Benedict College 3.00 11/01/2006 12.42 59
16 Bethune-Cookman College 3.00 10/01/2000 12.71 15
273 Birmingham-Southern College 3.00 10/01/2006 12.48 201
440 Birmingham-Southern College 3.00 10/01/2010 12.47 275
130 Black Hills State College 3.00 10/01/2005 11.76 100
100 Black Hills State College 3.00 10/01/2007 11.77 71
889 Boston University 3.00 12/31/2022 11.87 409
189 Bryan College 3.00 02/01/2010 12.68 117
26 Buena Vista College 3.625 02/01/2001 13.45 22
194 Buena Vista College 3.00 11/01/2009 12.41 126
---------- C ---------
2,110 California State University 3.00 11/01/2012 10.57 1,357
599 Carnegie - Mellon University 3.00 11/01/2017 10.45 343
1,905 Case Western Reserve University 3.00 04/01/2016 10.54 1,110
15 Centenary College of Louisiana 2.875 10/01/1999 12.82 14
92 Central Missouri State 3.125 07/01/2000 11.83 84
200 Central Missouri State 3.50 07/01/2001 11.80 176
59 Central Washington University 3.50 10/01/1999 10.99 57
614 Central Washington University 3.75 10/01/2004 11.03 507
36 Chaminade College of Honolulu 3.50 10/01/2002 12.55 30
See accompanying accountants' compilation report and notes to financial
statements.
22
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
----------------------------------------------
SCHEDULE OF INVESTMENTS
-----------------------
May 31, 1999
------------
(Dollar Amounts in Thousands)
(continued)
Outstanding Stated Internal Amortized
Principal Interest Maturity Rate of Cost (Notes
Balance Description Rate % Date Return % 1 and 2)
----------- ------------------------------------- --------- ---------- -------- ------------
$278 Chaminade College of Honolulu 3.00 10/01/2011 12.47 $169
86 Champlain College 3.00 10/01/2010 12.66 53
219 Claflin College 3.00 11/01/2002 12.57 186
46 Clark Atlanta University 3.00 11/01/1999 12.75 44
1,025 College of Charleston 3.00 07/01/2016 12.02 555
575 College of St. Thomas 3.00 04/01/2017 12.95 282
541 College of the Virgin Islands 3.00 10/01/2004 11.83 424
252 Colorado State University 3.50 04/01/2001 12.17 231
920 Colorado State University 3.625 04/01/2005 11.98 707
386 Community College of Rhode Island 3.00 04/01/2018 12.10 197
700 Concordia College 3.00 05/01/2011 12.64 425
82 Contra Costa College 3.00 04/01/2009 12.34 53
14 Cornell University 3.00 11/01/1999 10.84 14
345 Curry College 3.00 04/01/2010 12.74 216
---------- D ---------
18 Dana College 3.50 04/01/2001 13.39 16
325 Daniel Webster College 3.00 04/01/2019 12.99 150
369 Dean Junior College 3.00 04/01/2016 12.96 192
28 Dillard University 3.375 04/01/2002 13.41 24
51 Dillard University 3.00 11/01/2000 12.68 47
1,145 Drake University 3.00 10/01/2012 12.71 661
20 Drexel University 3.75 05/01/2000 11.72 18
---------- E ---------
377 Eckerd College 3.50 07/01/2003 12.53 303
46 Eckerd College 3.75 03/01/2005 13.04 34
104 Emory University 3.375 07/01/2002 12.59 89
215 Emory University 3.375 03/01/2003 13.25 170
400 Emporia State University 3.00 04/01/2009 12.33 259
---------- F ---------
259 Fairleigh Dickinson University 3.50 11/01/2003 11.66 215
114 Fairleigh Dickinson University 3.00 11/01/2020 12.09 55
26 Findlay College 3.375 07/01/2002 12.56 22
340 Florida Atlantic University 3.00 07/01/2006 11.85 247
60 Florida Institute of Technology 3.00 02/01/2006 13.17 42
160 Foothill College 3.00 10/01/2006 11.76 118
214 Fort Hays State University 3.375 10/01/2002 11.74 182
18 Fort Lewis College 3.125 10/01/1999 11.84 17
---------- G ---------
739 Gordon College 3.50 04/01/2013 12.84 423
1,140 Grambling State University 3.00-3.75 10/01/2005 11.70 875
See accompanying accountants' compilation report and notes to financial
statements.
23
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
----------------------------------------------
SCHEDULE OF INVESTMENTS
-----------------------
May 31, 1999
------------
(Dollar Amounts in Thousands)
(continued)
Outstanding Stated Internal Amortized
Principal Interest Maturity Rate of Cost (Notes
Balance Description Rate % Date Return % 1 and 2)
----------- ------------------------------------- --------- ---------- -------- ------------
---------- H ---------
$128 Hampshire College 3.00 11/01/2006 12.43 $92
710 Harcum Junior College 3.00 11/01/2015 12.44 381
430 Haverford College 3.625 11/01/2013 12.29 257
35 High Point College 3.375 12/01/2002 11.63 28
155 High Point College 3.00 12/01/2007 11.72 104
---------- I ---------
285 Indiana University 3.50 04/01/2000 11.56 262
114 Inter American University of San Juan 2.75-3.00 12/01/2001 11.63 95
1,025 Iowa State University of Ames 3.00 07/01/2007 10.63 747
---------- J ---------
380 Jackson State University 3.00 01/01/2007 12.50 260
42 Jarvis Christian College 3.50 04/01/2001 13.41 36
545 Jarvis Christian College 3.00 04/01/2019 12.96 254
---------- K ---------
3 Kansas Newman College 3.125 04/01/2000 13.71 3
134 Kansas Newman College 3.00 04/01/2006 13.10 93
200 Kansas State University 3.375 04/01/2002 11.79 170
36 Kansas State University 3.50 04/01/2000 11.52 33
18 Kent State University 2.875 12/01/1999 10.01 17
1,260 Kent State University 3.00 12/01/2008 10.55 876
52 Kenyon College 3.00 11/01/1999 10.69 51
41 Kirksville College of Kirksville, Missouri 3.125 12/01/2000 11.63 36
164 Knox College 3.00 05/01/2007 12.72 114
---------- L ---------
248 Laredo Junior College 3.00 08/01/2009 11.82 163
88 Lawrence University 3.375 04/01/2002 13.34 73
36 Linfield College 3.125 10/01/1999 12.80 34
610 Long Island University 3.00 06/01/2016 12.34 315
651 Long Island University 3.75 10/01/2005 12.42 496
141 Louisiana State University 3.50 07/01/2002 10.50 125
400 Louisiana State University 3.50 04/01/2002 11.10 345
12 Louisiana Tech University 3.50 04/01/2000 12.72 11
90 Loyola University - Mundelein Branch 3.125 10/01/2000 12.70 82
---------- M ---------
395 McKendree College 3.00 04/01/2007 13.07 265
58 Medical College of Wisconsin 3.00 10/01/1999 12.79 55
729 Michigan State University 3.00 05/01/2020 10.96 383
1,370 Middlebury College 3.00 04/01/2018 12.87 713
27 Midland Lutheran College 3.50 04/01/2001 13.41 23
217 Mississippi State University 3.50 12/01/2001 10.82 190
See accompanying accountants' compilation report and notes to financial
statements.
24
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
----------------------------------------------
SCHEDULE OF INVESTMENTS
-----------------------
May 31, 1999
------------
(Dollar Amounts in Thousands)
(continued)
Outstanding Stated Internal Amortized
Principal Interest Maturity Rate of Cost (Notes
Balance Description Rate % Date Return % 1 and 2)
----------- ------------------------------------- --------- ---------- -------- ------------
$100 Mississippi Valley State 3.00 07/01/2008 11.89 $69
508 Missouri Southern State College 3.00 12/01/2008 10.56 350
309 Missouri Western State College 3.00 10/01/2008 11.77 212
413 Montclair State College 3.00 07/01/2008 11.32 285
295 Monterey Peninsula College 3.00 10/01/2018 11.95 148
113 Montreat-Anderson College 3.00 12/01/2019 12.19 56
174 Moravian College 3.00 11/01/2000 12.67 158
13 Morehouse College 2.875 07/01/1999 10.48 12
83 Morehouse College 3.375 07/01/2001 10.57 74
955 Morris College 3.00 11/01/2013 12.42 543
---------- N ---------
398 New England College 3.625 10/01/2013 12.37 239
990 New England College 3.00 04/01/2019 12.96 461
109 North Carolina Agriculture
and Technical State University 3.75 07/01/2004 10.02 91
1,005 North Carolina State University 3.00 09/01/2006 8.02 831
23 Northeastern University 3.00 05/01/1999 13.10 22
---------- O ---------
84 Occidental College 3.50 10/01/2001 12.62 74
2,135 Old Dominion University 3.00 06/01/2013 11.70 1,251
102 Ouachita Baptist University 3.375 12/01/2002 11.63 84
---------- P ---------
50 Pacific University 3.50 10/01/2001 12.66 45
37 Pacific University 3.00 11/01/1999 12.75 35
27 Pan American University 3.50 10/01/2000 11.00 25
440 Point Loma Nazarene College 3.75 04/01/2005 13.05 345
66 Providence Hospital 3.375 01/01/2002 11.33 56
440 Purdue University 3.50 07/01/2001 10.26 394
---------- R ---------
219 Riverside Hospital 3.00 04/01/2007 13.09 149
648 Rivier College 3.625 04/01/2014 12.78 368
---------- S ---------
405 San Diego State University 3.00 11/01/2021 11.93 194
835 San Francisco State University 3.00 11/01/2021 11.93 398
1,130 Sarah Lawrence College 3.00 11/01/2021 12.64 520
278 Scripps College 3.00 10/01/2005 12.51 209
106 Simpson College 3.375 07/01/2001 12.18 92
6 South Dakota State University 3.125 04/01/2000 12.76 5
1,435 South Dakota State University 3.00 04/01/2016 12.31 758
See accompanying accountants' compilation report and notes to financial
statements.
25
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
----------------------------------------------
SCHEDULE OF INVESTMENTS
-----------------------
May 31, 1999
------------
(Dollar Amounts in Thousands)
(continued)
Outstanding Stated Internal Amortized
Principal Interest Maturity Rate of Cost (Notes
Balance Description Rate % Date Return % 1 and 2)
----------- ------------------------------------- --------- ---------- -------- ------------
$17 South Plains Junior College District 3.125 10/01/1999 11.85 $16
1,045 Southeast Missouri State 3.50 04/01/2005 12.32 790
236 Southern Arkansas University 3.75 10/01/2004 11.76 191
16 Southern Nazarene University 3.125 04/01/2000 13.60 14
47 Spring Arbor College 3.00 11/01/2000 12.67 43
167 Springfield College 3.00 05/01/2011 12.59 101
63 St. Augustine's College 3.00 11/01/2001 12.61 55
196 St. Edward's University 3.625 04/01/2013 12.80 114
165 St. Francis College 3.50 05/01/2001 12.88 144
336 St. Mary's University of San Antonio 3.75 11/01/2002 12.47 286
190 St. Michael's College 3.00 04/01/2008 13.06 126
236 Stanford University 3.125 04/01/2002 9.82 209
921 Stanford University 3.00 05/01/2024 10.40 460
59 Stetson University 3.50 09/01/2001 12.48 53
30 Stillman College 3.00 02/01/2007 13.24 21
2,871 Suomi College (A) 3.00 08/01/2014 12.70 847
160 Susquehanna University 3.00 11/01/2006 12.44 116
410 Susquehanna University 3.625 11/01/2014 12.32 238
138 Swarthmore College 3.00 11/01/2013 12.30 78
---------- T ---------
630 Taylor University 3.00 10/01/2010 12.45 394
493 Temple University 3.375 11/01/2014 11.99 292
271 Texas College 3.00 04/01/2007 13.09 183
673 Texas Tech University 3.625 03/01/2013 10.80 431
4,745 Texas Tech University 3.375-3.50 03/01/2012 10.83 3,080
128 Tougaloo College 3.00 06/01/2021 12.44 58
661 Tufts University 3.625 10/01/2004 12.47 523
---------- U ---------
1,806 University of Alabama 3.00 05/01/2021 12.27 844
51 University of Alaska 3.125 04/01/2001 12.63 45
166 University of Arkansas at Monticello 3.625 04/01/2004 12.40 131
27 University of Chicago 3.50 12/01/2001 11.63 23
928 University of Florida 3.00 01/01/2005 12.51 688
1,010 University of Hawaii at Manoa 3.00 10/01/2006 11.76 740
1,082 University of Missouri at Columbia 3.625 05/01/2004 11.63 876
66 University of Missouri at Rolla 3.50 05/01/2003 11.68 55
245 University of Montevallo 3.00 05/01/2023 12.30 109
137 University of Nebraska 3.00 07/01/2013 10.59 85
309 University of North Carolina 3.50 07/01/2002 10.60 267
1,375 University of North Carolina 3.00 01/01/2018 11.49 720
See accompanying accountants' compilation report and notes to financial
statements.
26
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
----------------------------------------------
SCHEDULE OF INVESTMENTS
-----------------------
May 31, 1999
------------
(Dollar Amounts in Thousands)
(continued)
Outstanding Stated Internal Amortized
Principal Interest Maturity Rate of Cost (Notes
Balance Description Rate % Date Return % 1 and 2)
----------- ------------------------------------- --------- ---------- -------- ------------
$1,710 University of Notre Dame 3.00 04/01/2018 12.95 $815
50 University of Pittsburgh 3.00 11/01/1999 9.95 48
280 University of Portland 3.00 04/01/2013 12.95 153
439 University of Rochester 3.375 10/01/2002 10.77 388
1,090 University of Rochester 3.00 10/01/2006 10.92 820
903 University of South Dakota 3.625 10/01/2013 11.74 555
2,225 University of South Florida 3.00 07/01/2013 11.97 1,289
280 University of Steubenville 3.375 04/01/2012 12.88 163
323 University of Steubenville 3.00 04/01/2017 12.96 158
2,806 University of Vermont 3.00 10/01/2019 12.19 1,375
100 University of Washington 3.50 08/01/2000 11.06 92
475 Utah State University 3.50 04/01/2002 11.76 405
---------- V ---------
1,024 Vanderbilt University 3.00 08/01/2005 10.69 797
715 Vanderbilt University 3.00 06/30/2009 10.39 499
---------- W ---------
110 West Virginia Institute of Technology 3.00 06/01/1999 11.66 104
320 West Virginia Wesleyan College 3.50 05/01/2002 13.43 264
135 Western Carolina University 3.75 11/01/2001 11.67 121
1,360 Western Maryland College 3.00 11/01/2016 12.44 712
175 Western Washington University 3.00 10/01/2007 11.16 127
27 Whittier College 3.50 04/01/2001 13.53 24
---------- X ---------
560 Xavier University 3.00 10/01/2017 12.54 279
- ------------------ -------------
88,892 Total College and University Loans 55,582
- ------------------
Allowance for Loan Losses 1,125
-------------
Net College and University Loans 54,457
-------------
INVESTMENT AGREEMENTS (23.9%)
2,600 FNMA #787 Liquidity Fund 8.00 12/01/2014 8.00 2,600
14,477 FNMA #786 Revenue Fund 5.00 12/01/2014 5.00 14,477
- ------------------ -------------
17,077 Total Investment Agreements 17,077
- ------------------ -------------
$105,969 Total Investments (100.0%) $71,534
================== =============
</TABLE>
(A) This institution has been placed on nonaccrual status as more fully
described in Note 6.
See accompanying accountants' compilation report and notes to financial
statements.
27
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains financial information extracted from the November 30,
1999 College and University Facility Loan Trust One financial statements and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1999
<PERIOD-END> MAY-31-1999
<INVESTMENTS-AT-COST> 71534
<INVESTMENTS-AT-VALUE> 0
<RECEIVABLES> 950
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 804
<TOTAL-ASSETS> 73288
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 57667
<OTHER-ITEMS-LIABILITIES> 3764
<TOTAL-LIABILITIES> 61431
<SENIOR-EQUITY> 1245
<PAID-IN-CAPITAL-COMMON> 9737
<SHARES-COMMON-STOCK> 1001643
<SHARES-COMMON-PRIOR> 1001643
<ACCUMULATED-NII-CURRENT> (126)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 11857
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3802
<OTHER-INCOME> 0
<EXPENSES-NET> 3242
<NET-INVESTMENT-INCOME> 560
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 560
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 114
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (37)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 9737
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 3068
<GROSS-EXPENSE> 3242
<AVERAGE-NET-ASSETS> 11875
<PER-SHARE-NAV-BEGIN> 10.15
<PER-SHARE-NII> .56
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (.12)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.59
<EXPENSE-RATIO> .27
[AVG-DEBT-OUTSTANDING] 59504
[AVG-DEBT-PER-SHARE] 59.41
</TABLE>
