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, 1999
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: 33-28491
THE MORTGAGE BANCFUND OF AMERICA II, a California Limited Partnership
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
California 33-0369995
STATE OR OTHER JURISDICTION OF INCORPORATION IRS EMPLOYER IDENTIFICATION NUMBER
2402 Michelson Drive, Suite 255, Irvine, California 92612-1323
ADDRESS OF PRINCIPAL EXECUTIVE OFFICES(ZIP CODE)
(949) 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 II,L.P.
(a California Limited Partnership)
Index to Form 10-Q
September 30, 1999
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 II, L.P.
(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 II, L.P.
(a California Limited Partnership)
Item 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources:
Liquidity continues to be a serious problem for the Partnership. There are
no plans to seek additional capital from outside sources, either debt nor
equity.
The capital account has eroded by over 98% of the original cost of $100.00
per limited Partnership unit to a value of $1.74 per Partnership unit
outstanding. This is due to losses experienced over the past several years.
Results of Operations:
The Partnership continues to report poor operating results for September 30,
1999. As discussed above, book value per Partnership unit outstanding is
down to $1.74; a 98% decline in value. Management is operating in a
liquidation mode to sell all remaining assets and return whatever investment
remains to the limited partners.
MORTGAGE BANCFUND OF AMERICA II, L.P.
(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 II, L.P.
(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 II, L.P.
(a California Limited Partnership)
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS Dec. 31, 1998 Sept 30,1999
Cash $ 6,601 124,296
Other assets (Note 1) 0 0
Accounts receivable (Note 2) 105,500 0
Total Assets $ 112,101 124,296
LIABILITIES & PARTNER'S EQUITY
Liabilities
Due to general partner & affiliates 43,891 0
Total liabilities 43,891 0
Partner's equity 68,210 124,296
Total liabilities & partner's equity $ 112,101 124,296
Book value per limited partner unit
outstanding $ .96 $ 1.74
CONSOLIDATED INCOME STATEMENTS
For the Nine Months Ended
9/30/98 9/30/98 9/30/99 9/30/99
Three Months Nine Months Three Months Nine Months
REVENUES:
Interest:
Loans 17,011 25,051 150,493 150,493
Investments 0 0 0 5,000
Other income 475 8,160 255 4,268
Total income 17,486 33,211 150,748 159,761
COSTS & EXPENSES:
Costs of loans 15,799 22,772 0 0
Real estate owned expenses 0 0 0 0
General & administrative costs 24,023 138,957 75,775 103,675
Total costs & expenses 39,822 161,729 75,775 103,675
NET LOSS (22,336) (128,518) 74,973 56,086
Net loss per partnership unit (0.31) (1.80) (1.05) (0.79)
outstanding
Partnership units outstanding 71,307 71,307 71,307 71,307
THE MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership)
CONSOLIDATED STATEMENTS OF PARTNER'S EQUITY
(Unaudited)
General Limited
Partner Partner Total
Balance, December 31, 1997 $ (190,071) $ 385,329 $ 195,258
Allocation of net loss (6,352) (120,696) (127,048)
Balance, December 31, 1998 (196,423) 264,633 68,210
Allocation of net loss 2,804 53,282 56,086
Balance, September 30, 1999 $ (193,619) $ 317,915 $ 124,296
CONSOLIDATED STATEMENTS OF CASH FLOW
For the Nine Months Ended
CASH FLOWS FROM OPERATING ACTIVITIES: 9/30/98 9/30/99
Net (loss) $ (128,518) $ 56,086
Loss on Disposal of Assets 0 0
Adjustments to reconcile net income to cash
provided by operating activities:
(Decrease) increase in accounts payable 0 0
(Increase) decrease in accounts receivable (44,000) 105,500
(Increase) decrease in other assets 0 0
(Decrease) increase in due to general partner 0 (43,891)
(Increase) decrease in other liabilities 0 0
NET CASH PROVIDED (USED) BY OPERATING ACTIVITI (172,518) 117,695
CASH FLOW FROM INVESTING ACTIVITIES:
Net change in loans receivable 0 0
NET CASH PROVIDED (USED) BY INVESTING ACTIVITI 0 0
CASH FLOWS FROM FINANCING Activities
Increase(Decrease) in notes payable 0 0
NET CASH PROVIDED (USED) BY FINANCING ACTIVITI 0 0
NET INCREASE(DECREASE) IN CASH (172,518) 117,695
CASH, Beginning of period 174,169 6,601
CASH, End of Period $ 1,651 $ 124,296
THE MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1 - Loans Receivable
Loans receivable 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
estimated net realizable value.
Note 2 - Accounts Receivable
This account represents funds owed to the Partnership from affiliate
partnerships and projects which were acquired through foreclosure and on
unsecured loans made to unrelated third parties.
Note 3 - Investments in Partnerships
A prior loan receivable secured by a deed of trust has been converted to an
equity interest in a limited liability company. The property was disposed of
in the third quarter. Final accounting will not be completed until the end
of 1999. The Partnership will conclude in 1999.
Accounting Policy - All adjustments made to the financial statements are of a
normal recurring nature necessary to present fairly the financial condition
of the Partnership.
