UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 33-17643
THE MORTGAGE BANCFUND OF AMERICA, a California Limited Partnership
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
California 33-0281356
STATE OR OTHER JURISDICTION OF INCORPORATION IRS EMPLOYER IDENTIFICATION NUMBER
2 Corporate Park, Ste. 106, Irvine, CA 92606
ADDRESS OF PRINCIPAL EXECUTIVE OFFICES(ZIP CODE)
(714) 253-2900
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE
N/A
FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR, IF CHANGED SINCE LAST REPORT
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15 (d) of
the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant
was required to file reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO_______
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15 (d) of
the Securities Exchange Act of 1934 subsequent to the distribution of
securities under a plan confirmed by a court.
N/A
YES NO_______
APPLICABLE ONLY CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest
practicable date. N/A
MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)
Index to Form 10-Q
September 30, 1997
Part I - Financial Information
Item 1 - Consolidated Financial Statements
Item 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations
Part II - Other Information
Item 1 - Legal Proceedings
Item 2 - Changes in Securities
Item 3 - Defaults Upon Senior Securities
Item 4 - Submission of Matters to a Vote of Security Holders
Item 5 - Other Information
Item 6 - Exhibits and Reports on Form 8-K
Signatures
MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)
Part I - Financial Information
Item 1 - Consolidated Financial Statements
Consolidated Balance Sheets
Consolidated Income Statements
Consolidated Statements of Partner's Equity
Consolidated Statements of Cash Flow
Notes to Consolidated Financial Statements
See attached exhibit
MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)
Item 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources:
Liquidity for the Partnership remains a pressing concern for management. All
cash needed for operations is being
generated through operations of foreclosed properties and from the sale of
those properties. Management has no
plans to seek additional sources of capital from outside sources either in
the form of debt or equity. However,
management is confident cash generated from operations is sufficient to
operate the Partnership in the future.
The capital accounts continued to decline for the quarter ended
September 30, 1997 due to a loss recorded of
$27,105 Book value per limited partner unit outstanding is reported at
$2.77; a decline of almost 100% since the
inception of the Partnership.
Results of Operations:
There are no substantial changes in any of the accounts since
December 31, 1996. Operations are very limited as
management is seeking to market the foreclosed real estate and to collect
the remaining loans on the Partnership
books. Management will continue to strive to effectively sell foreclosed
properties although the sagging California
economy remains a formidable obstacle to that goal. Management is not
seeking any additional investments other
than any required to ultimately liquidate property acquired through
foreclosure.
MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)
Part II - Other Information
Item 1 - Legal Proceedings
None.
Item 2 - Changes in Securities
None.
Item 3 - Defaults Upon Senior Securities
N/A
Item 4 - Submission of Matters to a Vote of Security Holders
None.
Item 5 - Other Information
None.
Item 6 - Exhibits and Reports on Form 8-K
None.
MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly authorized.
MORTGAGE BANCFUND OF AMERICA
(a California Limited Partnership)
Registrant
________________________________ _________________________
Robert Y. Strom, General Partner Date
THE MORTGAGE BANCFUND OF AMERICA
(a California LImited Partnership)
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS Dec. 31, 19 Sept. 30, 1997
Cash $ 145,904 26,815
Loans receivable (Note 1) 191,567 133,782
Accounts receivable (Note 2) (6237)
Other real estate owned (Note 3) 1,932,07 1,887,619
Other assets 180 110,908
Total Assets $2,263,491 2,159,124
LIABILITIES & PARTNER'S EQUITY
Liabilities
Accounts payable 234,229 55,320
Due to affiliates 142,409
Notes payable (Note 4) 1,680,442 1,887,976
Total liabilities 6,380,021 2,085,705
Minority interest (168,009)
Partner's equity 348,820 241,428
Total liabilities & partner's equity $2,263,491 2,159,124
Book value per limited partner unit outstandin $ 4.01 $ 2.77
CONSOLIDATED INCOME STATEMENTS
For the Three and Nine Months Ended
9/30/96 9/30/96 9/30/97 9/30/97
Three Month Nine Months Three Month Nine Months
REVENUES:
Interest:
Loans $ 5,163 $ 17,624 $ 5,498 16,047
Investments 1,932
Total interest 5,163 17,624 5,498 17,979
Net partnership income (loss) (6,964) (26,986)
Other income 175 425 250 2,222
Total income 5,338 18,049 (1,216) (6,785)
COSTS & EXPENSES:
Costs of loans 3,003 11,110 2,609 7,771
General & administrative costs 78,753 194,631 23,280 92,638
Total costs & expenses 81,756 205,741 25,889 100,409
NET LOSS $(76,418) $(187,692) $(27,105) (107,194)
Net loss per partnership unit (.88) (2.16) (.31) (1.23)
outstanding
Partnership units outstanding 87,087 87,087 87,087 87,087
THE MORTGAGE BANCFUND OF AMERICA
(a California LImited Partnership)
CONSOLIDATED STATEMENTS OF PARTNER'S EQUITY
(Unaudited)
General Limited
Partner Partner Total
Balance, December 31, 1995 $ (280,568) $ 1,477,958 $1,197,390
Allocation of net loss (42,429) (806,142 (848,570)
Balance, December 31, 1996 (322,997) 671,142 348,820
Allocation of net loss (5,360) (101,834) (107,194)
Balance, September 30, 1997 $ (328,357) $ 569,983 $ 241,626
CONSOLIDATED STATEMENTS OF CASH FLOW
For the Nine Months Ended
CASH FLOWS FROM OPERATING ACTIVITIES: 9/30/96 9/30/97
Net (loss) $ (187,692 $ (107,194)
Depreciation and Amortization 44,459
Adjustments to reconcile net income to cash
provided by operating activities:
(Decrease) increase in accounts payable 80,594 (178,909)
(Increase) in accounts receivable 171,209 (6,237)
(Decrease) increase in due to general partne (29,544) 142,409
(Decrease) increase in minority interest (1,007,310) (168,207)
(Increase) decrease in other liabilities
Decrease (increase) in other assets 5,534 (110,729)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITI (967,209) (384,408)
CASH FLOW FROM INVESTING ACTIVITIES:
Net change in loans receivable 5,084 57,785
Net change in other real estate owned 3,995,43
NET CASH PROVIDED (USED) BY FINANCING ACTIVITI 4,000,52 57,785
CASH FLOWS FROM FINANCING Activities
Increase(Decrease) in notes payable (3,055,918) 207,534
NET CASH PROVIDED (USED) BY FINANCING ACTIVITI (3,055,918) 207,534
NET INCREASE(DECREASE) IN CASH (22,605) (119,089)
CASH, Beginning of period 24,090 145,904
CASH, End of Period $ 1,485 $ 26,815
THE MORTGAGE BANCFUND OF AMERICA
(a California LImited Partnership)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1 - Loans Receivable
Loans recievable are carried at the unpaid principal balance net of unearned
loan fees. Points and other loan fees
are
deferred over the life of the loan. In management's opinion the book value
of these loans is equal to the esimtated
net realizable.
value.
Note 2 - Accounts Receivable
This account represents funds owed to the Partnership from affiliate
partnerships, and projects which were
acquired thorugh
foreclosure.
Note 3 - Other Real Estate Owned
This account represents properties owned by the partnerhsip which was
acquired through foreclosure and which
are owned
by the majority-owned limited partnerships.
A condensed balance sheet of the majority owned partnership follows:
CONDENSED BALANCE SHEET, unaudited, at September 30, 1997
Assets:
Cash and other assets 53,445
Real estate 1,887,619
Total assets $1,941,064
Liabilities and Partner's Equity:
Accounts payable 45,948
Notes payable 1,887,976
Due to affiliates (143,165)
Partner's equity 150,305
Total liabilities & partner's equity $1,941,064
Note 4 - Notes Payable
Account represents debt owed by the majority owed limited partnerships on
real estate owed.
Note 5 - Accounting Policy
The consolidated financial statements include the accounts of the Partnership
and majority-controlled
limited partnerships. All material intercompany transactions, profits, and
balances have been eliminated.
All adjustments made to the financial statements are of a normal recurring
nature necessary to present
fairly the financial condition of the Partnership.
