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FORM 10-Q--QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the period ended September 30, 1996
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: 33-22908-A
NORTH LENDERS, L.P.
(Exact name of Registrant as specified in its charter)
Tennessee 62-1271664
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification)
4400 Harding Road, Suite 500, Nashville, Tennessee 37205
(Address of principal executive office) (Zip Code)
(615) 292-1040
(Registrant's telephone number, including area code)
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 such reports), and (2) has been subject to such
filing requirements for at least the past 90 days.
YES X NO ___
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PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
NORTH LENDERS, L.P.
(A Tennessee Limited Partnership)
FINANCIAL STATEMENTS
For the Nine Months Ended September 30, 1996
INDEX
Financial Statements:
Balance Sheets 3
Statements of Operations 4
Statements of Cash Flows 5
Notes to Financial Statements 6
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<TABLE>
NORTH LENDERS, L.P.
(A Limited Partnership)
BALANCE SHEETS
(Unaudited)
<CAPTION>
September 30, December 31,
1996 1995
------------- -------------
<S> <C> <C>
ASSETS
CASH $46,707 $50,698
INTEREST RECEIVABLE
FROM AFFILIATE 37,211 11,186
NOTE RECEIVABLE FROM AFFILIATE 346,678 346,678
LOAN COSTS 102,021 114,264
Total Assets $ 532,617 $522,826
========== ==========
LIABILITIES AND PARTNERS' EQUITY
ACCRUED STATE INCOME $ 30,816 30,816
PARTNERS' EQUITY 501,801 492,010
Total Liabilities & Partners' Equity$ 532,617 $ 522,826
========== ==========
<FN>
See notes to financial statements.
/TABLE
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<TABLE>
NORTH LENDERS, L.P.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Quarter Ending Year to Date Ending
September 30, September 30,
------------------ ---------------------
1996 1995 1996 1995
------- ------ ------ ------
<S> <C> <C> <C> <C>
REVENUE:
Additional Interest $ - 302,978 - 622,696
Interest Income 8,739 9,813 27,231 37,252
Total Revenue $ 8,739 312,791 $ 27,231 659,948
EXPENSES:
Amortization 4,081 4,080 12,243 12,243
Legal & Accounting Fees- 300 4,822 7,864
General & Admin. Expenses- 1,293 375 1,690
Total Expenses $ 4,081 5,673 $ 17,440 21,797
NET INCOME $ 4,658 307,118 $ 9,791 638,151
<FN>
See notes to financial statements
</TABLE>
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<TABLE>
NORTH LENDERS, L.P.
(A Limited Partnership)
STATEMENTS OF CASH FLOW
(Unaudited)
<CAPTION>
Year-to-date
September 30,
_____________________________
1996 1995
____ ____
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income $9,791 638,151
Adjustments to reconcile
Net Income to Net Cash used in
Operating Activities:
Amortization 12,243 12,243
Additional Accrued Interest (26,025) (35,229)
Interest Pymts. Received
on Note Receivable - 50,939
Change in Accounts Payable - 151
Total Adjustments (13,782) 28,104
Net Cash provided by
Operating Activities (3,991) 666,255
Cash Flows from Investing Activities:
Change in Note Receivable
from Affiliate - 978,835
Cash Flows from Financing Activities:
Distribution to Partners - (1,647,727)
Net Increase/(Decrease) in
Cash and Cash Equivalents (3,991) (2,637)
CASH AT JANUARY 1, 50,698 50,607
CASH AT SEPTEMBER 30, $ 46,707 47,970
========= ========
<FN>
See notes to financial statements.
</TABLE>
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NORTH LENDERS, L.P.
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
For the Nine Months Ended September 30, 1996
(Unaudited)
A.ACCOUNTING POLICIES
The unaudited financial statements presented herein have been
prepared in accordance with the instructions to Form 10-Q and do
not include all of the information and note disclosures required
by generally accepted accounting principles. These statements
should be read in conjunction with the financial statements and
notes thereto included in the Partnership's Form 10-K for the
year ended December 31, 1995. In the opinion of management,
such financial statements include all adjustments, consisting
only of normal recurring adjustments, necessary to summarize
fairly the Partnership's financial position and results of
operations. The results of operations for the nine month period
ended September 30, 1996 may not be indicative of the results
that may be expected for the year ending December 31, 1996.
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Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The Partnership's primary business is to lend monies to North By
Northeast, L.P. ("the Borrower").
Due to the nature of the Registrant, all activity is a result of
transactions in North by Northeast, Ltd. (the "Borrower"), and
North by Northeast Land Partners (the "Land Partnership"), the
investment of North by Northeast, Ltd.
There have been no sales by the Land Partnership during the
first nine months of 1996. Operations of the Registrant are
comparable to prior quarters with the exception of interest
income. The decrease in interest income is due to "additional
interest" earned in 1995 and a lack of "additional interest" in
1996. "Additional interest" is earned when the required
interest payment to the Registrant exceeds the interest accrued
through that date. Interest payments are a function of time and
principal but also include a portion of the proceeds from sales
at the Land Partnership level.
Due to the minimal expenses that the Registrant incurs, the
General Partner believes that the present cash balance of
$46,707 at October 31, 1996, will provide sufficient liquidity
for the future.
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PART II. OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) No 8-K's have been filed during this quarter.
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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.
NORTH LENDERS, L.P.
By: 222 NORTH, LTD.
General Partner
Date: November 14, 1996 By:/s/ Steven D. Ezell
General Partner
By: 222 Partners, Inc.
General Partner
Date: November 14, 1996 By:/s/ Michael A. Hartley
Secretary/Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1996
<CASH> 46,707
<SECURITIES> 0
<RECEIVABLES> 346,678
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 532,617
<CURRENT-LIABILITIES> 30,816
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 501,801
<TOTAL-LIABILITY-AND-EQUITY> 532,617
<SALES> 0
<TOTAL-REVENUES> 27,239
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 17,440
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 9,791
<INCOME-TAX> 0
<INCOME-CONTINUING> 9,791
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,791
<EPS-PRIMARY> 1.74
<EPS-DILUTED> 0
</TABLE>
