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 March 31, 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, L.P. 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, Suite 255, Irvine, CA 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
March 31, 1999
Part I - Financial Information
Item 1 - 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 - Financial Statements
Balance Sheets
Income Statements
Statements of Partner's Equity
Statements of Cash Flow
Notes to Financial Statements
See attached exhibit
THE MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership)
BALANCE SHEETS
(Unaudited)
ASSETS Dec. 31, 1998 March 31, 1999
Cash $ 6,601 7,739
Loans receivable (Note 1) 0 0
Accounts receivable (Note 2) 105,500 89,500
Investments (Note 3 0 0
Total Assets $ 112,101 97,239
LIABILITIES & PARTNER'S EQUITY
Liabilities
Due to general partner & affiliates 43,891 43,891
Total liabilities 43,891 43,891
Partner's equity 68,210 53,348
Total liabilities & partner's equity $ 112,101 97,239
Book value per limited partner unit
outstanding $ .96 $ .75
INCOME STATEMENTS
For the Three Months Ended
3/31/98 3/31/99
Unaudited Unaudited
REVENUES:
Interest:
Loans $ 5,075 $ 0
Other income 5,060 7,288
Total income 10,135 7,288
COSTS & EXPENSES:
Costs of loans 4,156 0
General & administrative costs 70,300 22,150
Total costs & expenses 74,456 22,150
NET LOSS (64,321) (14,862)
Net loss per partnership unit (0.90) (0.21)
outstanding
Partnership units outstanding 71,307 71,307
THE MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership)
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 (743) (14,119) (14,862)
Balance, March 31, 1999 $ (197,166) $ 250,514 $ 53,348
STATEMENTS OF CASH FLOW
For the Three Months Ended
CASH FLOWS FROM OPERATING ACTIVITIES: 3/31/98 3/31/99
Net (loss) $ (64,321) $ (14,862)
Adjustments to reconcile net income to cash
provided by operating activities:
Decrease (increase) in accrued interest rec. 0 0
(Decrease) increase in accounts payable 0 0
(Increase) decrease in accounts receivable (7,000) 16,000
Increase (decrease) in other liabilities 0 0
Decrease (increase) in due to general partner 0 0
NET CASH (USED) BY OPERATING ACTIVITIES (71,321) 1,138
CASH FLOW FROM INVESTING ACTIVITIES:
Net change in loans receivable 0 0
NET CASH PROVIDED IN INVESTING ACTIVITIES 0 0
CASH FLOWS FROM FINANCING ACTIVITIES
Increase(Decrease) in notes payable 0 0
NET CASH PROVIDED BY FINANCING ACTIVITI 0 0
NET INCREASE(DECREASE) IN CASH (71,321) 1,138
CASH, Beginning of period 174,169 6,601
CASH, End of Period $ 102,848 $ 7,739
THE MORTGAGE BANCFUND OF AMERICA II, L.P.
(a California Limited Partnership)
NOTES TO THE 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, 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 which continues to own the
propety. An allowance of $262,018 offsets the carrying value of the
investment.
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.
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 problem for the Partnership. There are no plans
to seek additional capital from outside sources, neither debt nor equity.
The capital account eroded by nearly 99% of the original $100.00 cost per
limited Partnership unit to a value of $.75 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 March 31, 1999.
As discussed above, book value per Partnership unit outstanding is down to
$.75; a 99% decline in value. Management is operating in a liquidation mode
to collect on 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 Securites
None
Item 3 - Defaults Upon senior Securites
None
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 II, L.P.
(a California Limited Partnership)
Registrant
Robert Y. Strom, General Partner Date
