<PAGE>
COLLEGA AND UNIVERSITY
FACILITY LOAN TRUST ONE
COMPILED FINANCIAL STATEMENTS
SIX MONTHS ENDED MAY 31, 2000
<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, 2000, 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,
1999, 1998, 1997, 1996 and 1995, presented herein for comparative purposes, was
audited by other auditors whose report thereon dated January 5, 2000, 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 18, 2000
<PAGE>
COLLEGE AND UNIVERSITY
FACILITY LOAN TRUST ONE
BALANCE SHEET
MAY 31, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS
<S> <C>
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) $ 64,285,106
CASH 78,137
PREPAID EXPENSES 11,353
INTEREST RECEIVABLE 870,362
DEFERRED BOND ISSUANCE COSTS (Note 2) 633,752
-----------------------------------------------------------------------------------------------
Total assets 65,878,710
-----------------------------------------------------------------------------------------------
LIABILITIES
BONDS PAYABLE (Notes 1, 3 and 8) 50,983,718
INTEREST PAYABLE (Note 3) 2,665,929
ACCRUED EXPENSES AND OTHER LIABILITIES 196,923
PAYABLE FOR REDEMPTION OF CLASS A PREFERRED CERTIFICATES (Note 5) 327,709
CLASS A DIVIDEND PAYABLE (Note 5) 21,711
DISTRIBUTION PAYABLE TO CLASS B CERTIFICATEHOLDERS (Note 5) 260,214
-----------------------------------------------------------------------------------------------
Total liabilities 54,456,204
-----------------------------------------------------------------------------------------------
NET ASSETS
CLASS B CERTIFICATES, par value $1 - authorized, issued
and outstanding - 1,001,643 certificates (Note 5) 1,001,643
ACCUMULATED DEFICIT (Notes 2 and 5) (973,228)
PAID-IN CAPITAL (Note 2) 11,394,091
-----------------------------------------------------------------------------------------------
Total net assets $ 11,422,506
-----------------------------------------------------------------------------------------------
Net asset value per Class B certificate
(based on 1,001,643 certificates outstanding) $ 11.40
-----------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING ACCOUNTANTS' COMPILATION REPORT AND NOTES TO FINANCIAL
STATEMENTS.
3
<PAGE>
COLLEGE AND UNIVERSITY
FACILITY LOAN TRUST ONE
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 2000
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Interest income (Note 2) $ 3,430,713
----------------------------------------------------------------------------------------------------
EXPENSES:
Interest expense (Notes 2 and 3) 2,719,223
Servicer fees (Note 4) 26,995
Trustee fees (Note 4) 19,908
Other trust and bond administration expenses 148,441
----------------------------------------------------------------------------------------------------
Total expenses 2,914,567
----------------------------------------------------------------------------------------------------
Net investment income 516,146
----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 516,146
DIVIDENDS TO CLASS A PREFERRED CERTIFICATEHOLDERS 21,711
----------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Class B certificateholders
resulting from operations $ 494,435
----------------------------------------------------------------------------------------------------
</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, 2000
-------------------------------------------------------------------------------
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest received $ 1,673,394
Interest paid (2,845,847)
Operating expenses paid (160,981)
-------------------------------------------------------------------------------------------
Net cash used for operating activities (1,333,434)
-------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net increase in funds held under investment agreements 1,603,196
Principal payments on Loans 4,265,103
-------------------------------------------------------------------------------------------
Net cash provided by investing activities 5,868,299
-------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal repayments on Bonds (3,527,788)
Redemption of Class A Preferred certificates (916,811)
Dividends to Class A Preferred certificateholders (82,449)
-------------------------------------------------------------------------------------------
Net cash used for financing activities (4,527,048)
-------------------------------------------------------------------------------------------
NET INCREASE IN CASH 7,817
CASH, beginning of period 70,320
-------------------------------------------------------------------------------------------
CASH, end of period $ 78,137
-------------------------------------------------------------------------------------------
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 $ 516,146
Decrease in interest receivable 65,320
Increase in prepaid expenses (11,353)
Increase in accrued expenses and other liabilities 45,718
Decrease in Bond interest payable (179,918)
Amortization of deferred Bond issuance costs 53,294
Amortization of purchase discount on Loans (1,822,641)
-------------------------------------------------------------------------------------------
Net cash used for operating activities $ (1,333,434)
-------------------------------------------------------------------------------------------
</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>
FOR THE
SIX MONTHS
ENDED Year Ended
MAY 31, November 30,
2000 1999
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 516,146 $ 1,218,601
DIVIDENDS TO CERTIFICATEHOLDERS (Notes 2 and 5):
Class A Preferred certificateholders
($.1325 per certificate annually):
From net investment income (21,711) (51,574)
As tax return of capital - (145,266)
--------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Class B
certificateholders resulting from operations 494,435 1,021,761
--------------------------------------------------------------------------------------------------------
CAPITAL CERTIFICATE TRANSACTIONS (Note 5):
Redemptions of Class A Preferred certificates, 327,709
and 1,398,953 certificates in 2000 and 1999, respectively (327,709) (1,398,953)
DISTRIBUTIONS TO CLASS B CERTIFICATEHOLDERS (Note 5) (260,214) -
--------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from capital
certificate transactions (587,923) (1,398,953)
--------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS (93,488) (377,192)
NET ASSETS:
Beginning of period 11,515,994 11,893,186
--------------------------------------------------------------------------------------------------------
End of period $ 11,422,506 $ 11,515,994
--------------------------------------------------------------------------------------------------------
</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, ---------------------------------------------------------------------
2000 1999 1998 1997 1996 1995
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period $11.17 $10.15 $ 9.54 $9.08 $7.27 $6.61
NET INVESTMENT INCOME .51 1.21 1.15 1.20 2.69 1.77
PROVISION FOR LOAN LOSSES - - (.20) (.20) (.20) (.40)
DIVIDENDS TO CLASS A PREFERRED
CERTIFICATEHOLDERS:
From net investment income (.02) (.05) (.04) (.15) (.17) (.64)
As tax return of capital - (.14) (.30) (.39) (.51) (.07)
DISTRIBUTIONS TO CLASS B
CERTIFICATEHOLDERS (.26) - - - - -
-------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, end of period $11.40 $11.17 $10.15 $9.54 $9.08 $7.27
-------------------------------------------------------------------------------------------------------------------------------
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 $ - $ 327,709 $ 1,726,662 $2,963,176 $4,267,199 $5,376,365
NET ASSETS APPLICABLE TO
CLASS B CERTIFICATES, end of period $11,422,506 $11,188,285 $10,166,524 $9,553,099 $9,099,485 $7,281,153
-------------------------------------------------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA:
Ratio of operating expenses to
average net assets applicable to
Class B certificates 51.56%(b)(c) 59.53%(b) 71.95%(b) 83.43%(b) 103.94%(b) 133.48%(b)
Ratio of net investment income
to average net assets applicable
to Class B certificates 9.13%(c) 11.41% 11.69% 12.83% 32.93% 25.57%
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 3.46%(c), 3.60%, 2.73%,
2.40%, 4.48% and 5.42% in 2000, 1999, 1998, 1997, 1996 and 1995,
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
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 Bank One Trust Company, NA, formerly 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, 2000 was
approximately $29,442,000. As a result of prepayments of Loans in the six months
ended May 31, 2000, additional interest income of approximately $60,000 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, 2000,
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
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 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
SIGNIFICANT
ACCOUNTING
POLICIES
(Continued)
(e) ACCOUNTING FOR IMPAIRMENT OF A LOAN AND ALLOWANCE FOR 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 of November 30, 1999, all tax earnings and profits have been distributed.
Accordingly, all accumulated undistributed net investment income has been
reclassified to paid-in capital. This reclassification results from permanent
book and tax differences such as the receipt of tax-exempt interest income on
certain Loans, the related interest expense on the Bonds, and the accretion of
purchase discount on the Loans. 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, 2000, however, the amount cannot be reasonably estimated at May 31,
2000.
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, 2000 consist of the following:
<TABLE>
<CAPTION>
Principal
Interest Stated Amount
Type Rate Maturity (000s)
------------------------------------------------------------------------------------
<S> <C> <C> <C>
Term 10.20% June 1, 2002 $ 13,407
Term 10.55 December 1, 2014 37,577
------------------------------------------------------------------------------------
$ 50,984
------------------------------------------------------------------------------------
</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, 2000, the Trust made
the mandatory redemption of $2,640,698 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, 2000, are as follows:
<TABLE>
<CAPTION>
Amount
FISCAL YEAR (000's)
------------------------------------------------------------
<S> <C>
2000 $ 2,641
2001 5,570
2002 5,196
2003 4,447
2004 4,397
Thereafter 28,733
-------------------------------------------------------------
Total $50,984
-------------------------------------------------------------
</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 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, 2000 Bond Payment were
sufficient to satisfy the maximum reserve fund requirement of $7,329,751.
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, 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 six months ended May 31,
2000, this fee totaled $26,995, which includes other related expenses of $3,272.
(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:
- The Owner Trustee, in its capacities as manager of the Trust and as Owner
Trustee, earned fees of $5,975 and $5,377, respectively, for the six months
ended May 31, 2000. In addition, the Owner Trustee incurred $125 for
out-of-pocket expenses.
- 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, 2000, the fees
amounted to $6,740. In addition, the Bond Trustee incurred $1,691 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 2, 2000, the Trust paid $349,420 to the holders of Class A Preferred
certificates, of which $21,711 was for payment of dividends and $327,709 was a
redemption of Class A Preferred certificates. These payments are reflected as
liabilities in the accompanying balance sheet.
SEE ACCOMPANYING ACCOUNTANTS' COMPILATION REPORT.
16
<PAGE>
COLLEGE AND UNIVERSITY
FACILITY LOAN TRUST ONE
NOTES TO FINANCIAL STATEMENTS
5. CERTIFICATES
(Continued)
As the Class A Preferred certificates have been fully redeemed, 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.
On June 2, 2000 a distribution of $260,214 was made to the Class B
certificateholders. This payment is reflected as a liability in the accompanying
balance sheet.
The certificateholders shall each be entitled to one vote per certificate.
6. ALLOWANCE FOR
LOAN LOSSES
An analysis of the allowance for loan losses for the six months ended May 31,
2000 is summarized as follows:
Balance, beginning of period $ 1,125,000
Provision -
Charge-offs -
-----------------------------------------------------------------------------
Balance, end of period $ 1,125,000
-----------------------------------------------------------------------------
At May 31, 2000, the recorded investment in the loan that is considered to be
impaired under SFAS 114 was approximately $783,000 with a related allowance for
loan loss of $548,000.
The average recorded investment in the impaired loan during the six months ended
May 31, 2000 was approximately $794,000. For the six months ended May 31, 2000,
no interest income was recognized on the impaired loan.
The amortized cost of the loan placed on nonaccrual status is approximately
$783,000 at May 31, 2000. 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, 2000,
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>
2000 $ 4,471 $ 1,195 $ 5,666
2001 8,014 2,175 10,189
2002 7,213 1,920 9,133
2003 6,414 1,696 8,110
2004 6,042 1,493 7,535
Thereafter 43,800 7,953 51,753
----------------------------------------------------------------------------------
Total $ 75,954 $ 16,432 $ 92,386
----------------------------------------------------------------------------------
</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, 2000, 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
(Continued)
The following analysis summarizes the stratification of the loan portfolio by
type of collateral and institution as of May 31, 2000:
<TABLE>
<CAPTION>
Amortized
Number Cost
TYPE OF COLLATERAL of Loans (000s) %
--------------------------------------------------------------------------------
<S> <C> <C> <C>
Loans secured by a
first mortgage 106 $ 24,013 48.6%
Loans not secured by
a first mortgage 63 25,371 51.4
--------------------------------------------------------------------------------
Total Loans 169 $ 49,384 100.0%
--------------------------------------------------------------------------------
Amortized
Number Cost
TYPE OF INSTITUTION of Loans (000s) %
--------------------------------------------------------------------------------
Private 109 $ 23,721 48.0%
Public 60 25,663 52.0
--------------------------------------------------------------------------------
Total Loans 169 $ 49,384 100.0%
--------------------------------------------------------------------------------
</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
(Continued)
The collateral for Loans that are secured by a mortgage on real estate generally
consists of special purpose facilities, such as dormitories, dining halls and
gymnasiums, which are integral components of the overall educational setting. As
a result, in the event of borrower default on a Loan, the Trust's ability to
realize the outstanding balance of the Loan through the sale of the underlying
collateral may be negatively impacted by the special purpose nature and location
of such collateral.
A number of borrowers are currently experiencing adverse changes in their
financial condition due to declining enrollment, increasing costs and a decline
in endowments, grants, private gifts, and State and Federal funding. Many of
these potentially troubled borrowers are developing and implementing strategic
plans to improve their financial position; the plans generally include taking
actions to control costs and increase revenues through tuition increases,
fundraising campaigns, higher enrollment and a reduction of faculty.
Due to the special purpose nature of the borrowers' properties, the ability of
such troubled borrowers to repay their loans may ultimately be dependent on the
future success of the institutions' programs.
8. FAIR VALUE
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.
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)
Current market prices are not available for most of the Trust's financial
instruments since an active market generally does not exist for such
instruments. In accordance with the terms of the Indenture, the Trust is
required to hold all of the Loans to maturity and to use the cash flows
therefrom to retire the Bonds. Accordingly, the Trust has estimated the fair
values of its financial instruments using a discounted cash flow methodology.
This methodology is similar to the approach used at the formation of the Trust
to determine the carrying amounts of these instruments for financial reporting
purposes. In applying the methodology, the calculations have been adjusted for
the change in the relevant market rates of interest, the estimated duration of
the instruments and an internally developed credit risk rating of the
instruments. All calculations are based on the scheduled principal and interest
payments on the Loans because the prepayment rate on these Loans is not subject
to estimate.
The estimated fair value of each category of the Trust's financial instruments
and the related book value presented in the accompanying balance sheet as of May
31, 2000 are as follows:
<TABLE>
<CAPTION>
Book Value Fair Value
(000s) (000s)
-------------------------------------------------------------------------
<S> <C> <C>
Loans $ 48,259 * $ 58,774
Investment Agreements:
Revenue Fund 13,427 15,127
Liquidity Fund 2,599 3,444
-------------------------------------------------------------------------
$ 64,285 $ 77,345
-------------------------------------------------------------------------
Bonds $ 50,984 $ 59,960
-------------------------------------------------------------------------
</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, 2000
(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 (75.1%)
---------- A ---------
$1,290 Albion College 3.00 10/01/2015 12.51 $708
25 Albright College 3.50 05/01/2001 11.70 23
332 Alfred University 3.00 11/01/2007 12.41 238
39 Allegheny College 3.50 07/01/2001 12.83 36
455 Alma College 3.00 04/01/2010 11.87 299
210 Alverno College 3.375 10/01/2003 12.52 176
230 Anderson College 3.00 03/01/2010 13.02 143
769 Appalachian State University 3.00-3.625 07/01/2004 11.80 626
282 Arizona State University 3.50 10/01/2003 11.72 244
201 Atlantic Union College 3.00 05/01/2023 12.68 89
1,290 Augsburg College 3.00 04/01/2016 12.95 668
743 Azusa Pacific University 3.00 04/01/2017 12.96 373
---------- B ---------
595 Baptist College at Charleston 3.00 03/01/2014 12.96 326
74 Benedict College 3.00 11/01/2006 12.42 55
8 Bethune-Cookman College 3.00 10/01/2000 12.71 8
238 Birmingham-Southern College 3.00 10/01/2006 12.48 182
408 Birmingham-Southern College 3.00 10/01/2010 12.47 263
112 Black Hills State College 3.00 10/01/2005 11.76 89
90 Black Hills State College 3.00 10/01/2007 11.77 66
877 Boston University 3.00 12/31/2022 11.87 419
175 Bryan College 3.00 02/01/2010 12.68 113
12 Buena Vista College 3.625 02/01/2001 13.45 11
---------- C ---------
1,990 California State University 3.00 11/01/2012 10.57 1,314
574 Carnegie - Mellon University 3.00 11/01/2017 10.45 336
1,815 Case Western Reserve University 3.00 04/01/2016 10.54 1,081
42 Central Missouri State 3.125 07/01/2000 11.83 40
136 Central Missouri State 3.50 07/01/2001 11.80 124
514 Central Washington University 3.75 10/01/2004 11.03 438
27 Chaminade College of Honolulu 3.50 10/01/2002 12.55 24
260 Chaminade College of Honolulu 3.00 10/01/2011 12.47 163
79 Champlain College 3.00 10/01/2010 12.66 50
161 Claflin College 3.00 11/01/2002 12.57 142
985 College of Charleston 3.00 07/01/2016 12.02 551
550 College of St. Thomas 3.00 04/01/2017 12.95 277
457 College of the Virgin Islands 3.00 10/01/2004 11.83 372
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
22
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
MAY 31, 2000
(Dollar Amounts in Thousands)
<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>
$88 Colorado State University 3.50 04/01/2001 12.17 $81
780 Colorado State University 3.625 04/01/2005 11.98 621
371 Community College of Rhode Island 3.00 04/01/2018 12.10 195
650 Concordia College 3.00 05/01/2011 12.64 408
333 Curry College 3.00 04/01/2010 12.74 226
---------- D ---------
9 Dana College 3.50 04/01/2001 13.39 8
315 Daniel Webster College 3.00 04/01/2019 12.99 151
349 Dean Junior College 3.00 04/01/2016 12.96 186
15 Dillard University 3.375 04/01/2002 13.41 13
21 Dillard University 3.00 11/01/2000 12.68 20
1,075 Drake University 3.00 10/01/2012 12.71 641
---------- E ---------
306 Eckerd College 3.50 07/01/2003 12.53 256
39 Eckerd College 3.75 03/01/2005 13.04 30
73 Emory University 3.375 07/01/2002 12.59 65
165 Emory University 3.375 03/01/2003 13.25 137
365 Emporia State University 3.00 04/01/2009 12.33 245
---------- F ---------
209 Fairleigh Dickinson University 3.50 11/01/2003 11.66 179
110 Fairleigh Dickinson University 3.00 11/01/2020 12.09 54
20 Findlay College 3.375 07/01/2002 12.56 17
300 Florida Atlantic University 3.00 07/01/2006 11.85 225
52 Florida Institute of Technology 3.00 02/01/2006 13.17 38
140 Foothill College 3.00 10/01/2006 11.76 107
164 Fort Hays State University 3.375 10/01/2002 11.74 145
---------- G ---------
699 Gordon College 3.50 04/01/2013 12.84 413
995 Grambling State University 3.00-3.75 10/01/2005 11.70 789
---------- H ---------
113 Hampshire College 3.00 11/01/2006 12.43 84
680 Harcum Junior College 3.00 11/01/2015 12.44 376
410 Haverford College 3.625 11/01/2013 12.29 252
27 High Point College 3.375 12/01/2002 11.63 23
140 High Point College 3.00 12/01/2007 11.72 97
---------- I ---------
77 Inter American University of San Juan 2.75-3.00 12/01/2001 11.63 67
925 Iowa State University of Ames 3.00 07/01/2007 10.63 695
---------- J ---------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
23
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
MAY 31, 2000
(Dollar Amounts in Thousands)
<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>
$335 Jackson State University 3.00 01/01/2007 12.50 $237
22 Jarvis Christian College 3.50 04/01/2001 13.41 20
526 Jarvis Christian College 3.00 04/01/2019 12.96 252
---------- K ---------
117 Kansas Newman College 3.00 04/01/2006 13.10 85
135 Kansas State University 3.375 04/01/2002 11.79 119
1,150 Kent State University 3.00 12/01/2008 10.55 822
17 Kirksville College of Kirksville, Missouri 3.125 12/01/2000 11.63 15
145 Knox College 3.00 05/01/2007 12.72 105
---------- L ---------
229 Laredo Junior College 3.00 08/01/2009 11.82 156
60 Lawrence University 3.375 04/01/2002 13.34 52
585 Long Island University 3.00 06/01/2016 12.34 311
567 Long Island University 3.75 10/01/2005 12.42 447
97 Louisiana State University 3.50 07/01/2002 10.50 89
270 Louisiana State University 3.50 04/01/2002 11.10 241
45 Loyola University - Mundelein Branch 3.125 10/01/2000 12.70 43
---------- M ---------
350 McKendree College 3.00 04/01/2007 13.07 244
704 Michigan State University 3.00 05/01/2020 10.96 378
1,305 Middlebury College 3.00 04/01/2018 12.87 699
14 Midland Lutheran College 3.50 04/01/2001 13.41 13
121 Mississippi State University 3.50 12/01/2001 10.82 110
90 Mississippi Valley State 3.00 07/01/2008 11.89 64
463 Missouri Southern State College 3.00 12/01/2008 10.56 328
282 Missouri Western State College 3.00 10/01/2008 11.77 200
377 Montclair State College 3.00 07/01/2008 11.32 269
285 Monterey Peninsula College 3.00 10/01/2018 11.95 147
106 Montreat-Anderson College 3.00 12/01/2019 12.19 51
89 Moravian College 3.00 11/01/2000 12.67 85
56 Morehouse College 3.375 07/01/2001 10.57 52
904 Morris College 3.00 11/01/2013 12.42 530
---------- N ---------
377 New England College 3.625 10/01/2013 12.37 233
955 New England College 3.00 04/01/2019 12.96 457
895 North Carolina State University 3.00 09/01/2006 8.02 756
---------- O ---------
57 Occidental College 3.50 10/01/2001 12.62 52
2,020 Old Dominion University 3.00 06/01/2013 11.70 1,216
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
24
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
MAY 31, 2000
(Dollar Amounts in Thousands)
<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>
$75 Ouachita Baptist University 3.375 12/01/2002 11.63 $64
---------- P ---------
29 Pacific University 3.50 10/01/2001 12.66 27
11 Pan American University 3.50 10/01/2000 11.00 11
45 Providence Hospital 3.375 01/01/2002 11.33 40
300 Purdue University 3.50 07/01/2001 10.26 277
---------- R ---------
193 Riverside Hospital 3.00 04/01/2007 13.09 137
613 Rivier College 3.625 04/01/2014 12.78 357
---------- S ---------
395 San Diego State University 3.00 11/01/2021 11.93 195
810 San Francisco State University 3.00 11/01/2021 11.93 395
1,093 Sarah Lawrence College 3.00 11/01/2021 12.64 515
238 Scripps College 3.00 10/01/2005 12.51 186
72 Simpson College 3.375 07/01/2001 12.18 65
1,365 South Dakota State University 3.00 04/01/2016 12.31 740
880 Southeast Missouri State 3.50 04/01/2005 12.32 689
196 Southern Arkansas University 3.75 10/01/2004 11.76 164
24 Spring Arbor College 3.00 11/01/2000 12.67 23
155 Springfield College 3.00 05/01/2011 12.59 97
41 St. Augustine's College 3.00 11/01/2001 12.61 38
185 St. Edward's University 3.625 04/01/2013 12.80 111
85 St. Francis College 3.50 05/01/2001 12.88 78
255 St. Mary's University of San Antonio 3.75 11/01/2002 12.47 225
170 St. Michael's College 3.00 04/01/2008 13.06 117
146 Stanford University 3.125 04/01/2002 9.82 133
896 Stanford University 3.00 05/01/2024 10.40 456
34 Stetson University 3.50 09/01/2001 12.48 32
26 Stillman College 3.00 02/01/2007 13.24 18
2,871 Suomi College (A) 3.00 08/01/2014 12.70 783
140 Susquehanna University 3.00 11/01/2006 12.44 105
390 Susquehanna University 3.625 11/01/2014 12.32 232
131 Swarthmore College 3.00 11/01/2013 12.30 76
---------- T ---------
585 Taylor University 3.00 10/01/2010 12.45 378
468 Temple University 3.375 11/01/2014 11.99 284
239 Texas College 3.00 04/01/2007 13.09 168
638 Texas Tech University 3.625 03/01/2013 10.80 419
4,445 Texas Tech University 3.375-3.50 03/01/2012 10.83 2,957
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
25
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
MAY 31, 2000
(Dollar Amounts in Thousands)
<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>
$124 Tougaloo College 3.00 06/01/2021 12.44 $58
556 Tufts University 3.625 10/01/2004 12.47 457
---------- U ---------
1,746 University of Alabama 3.00 05/01/2021 12.27 835
19 University of Alaska 3.125 04/01/2001 12.63 17
136 University of Arkansas at Monticello 3.625 04/01/2004 12.40 111
18 University of Chicago 3.50 12/01/2001 11.63 16
778 University of Florida 3.00 01/01/2005 12.51 600
895 University of Hawaii at Manoa 3.00 10/01/2006 11.76 679
862 University of Missouri at Columbia 3.625 05/01/2004 11.63 720
48 University of Missouri at Rolla 3.50 05/01/2003 11.68 42
238 University of Montevallo 3.00 05/01/2023 12.30 108
129 University of Nebraska 3.00 07/01/2013 10.59 82
234 University of North Carolina 3.50 07/01/2002 10.60 209
1,320 University of North Carolina 3.00 01/01/2018 11.49 709
1,640 University of Notre Dame 3.00 04/01/2018 12.95 802
264 University of Portland 3.00 04/01/2013 12.95 149
314 University of Rochester 3.375 10/01/2002 10.77 286
965 University of Rochester 3.00 10/01/2006 10.92 749
858 University of South Dakota 3.625 10/01/2013 11.74 541
2,105 University of South Florida 3.00 07/01/2013 11.97 1,254
262 University of Steubenville 3.375 04/01/2012 12.88 158
309 University of Steubenville 3.00 04/01/2017 12.96 155
2,705 University of Vermont 3.00 10/01/2019 12.19 1,357
50 University of Washington 3.50 08/01/2000 11.06 48
320 Utah State University 3.50 04/01/2002 11.76 283
---------- V ---------
889 Vanderbilt University 3.00 08/01/2005 10.69 714
657 Vanderbilt University 3.00 06/30/2009 10.39 471
---------- W ---------
244 West Virginia Wesleyan College 3.50 05/01/2002 13.43 213
90 Western Carolina University 3.75 11/01/2001 11.67 83
1,300 Western Maryland College 3.00 11/01/2016 12.44 698
160 Western Washington University 3.00 10/01/2007 11.16 121
1 Whittier College 3.50 04/01/2001 13.53 1
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
26
<PAGE>
COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE
SCHEDULE OF INVESTMENTS
MAY 31, 2000
(Dollar Amounts in Thousands)
<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>
---------- X ---------
$540 Xavier University 3.00 10/01/2017 12.54 $277
------------- --------
78,825 Total College and University Loans 49,384
Allowance for Loan Losses 1,125
--------
Net Loans of the Trust 48,259
--------
INVESTMENT AGREEMENTS (24.9%)
2,599 FNMA #787 Liquidity Fund 8.00 12/01/2014 8.00 2,599
13,427 FNMA #786 Revenue Fund 5.00 12/01/2014 5.00 13,427
------------- --------
16,026 Total Investment Agreements 16,026
------------- --------
94,851 Total Investments (100.0%) 64,285
============= ========
</TABLE>
(A) This institution has been placed on nonaccrual status as more fully
described in Note 6.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
27
