PROSPECTUS
SUMMIT SECURITIES, INC.
$40,000,000 Investment Certificates, Series A
150,000 Shares Variable Rate Cumulative
Preferred Stock, Series S-3
($100 Per Share Offering Price
and Liquidation Preference)
The Investment Certificates, Series A ("Certificates") and the
shares of Variable Rate Cumulative Preferred Stock, Series S-3
("Preferred Stock") of Summit Securities, Inc. ("Summit") are being
offered separately and not as units. A Certificateholder may elect to
receive interest monthly, quarterly, semi-annually or annually, without
compounding; or, at the election of a Certificateholder, if interest is
left with Summit it will compound semi-annually until maturity; or, at
the election of the Certificateholder the Certificates will pay equal
monthly installments of principal and interest until maturity according
to an amortization schedule selected by the owner. The Certificates are
unsecured debt instruments, senior in liquidation to outstanding equity
securities, subordinated to collateralized debt, on parity with unsecured
accounts payable and accrued liabilities and on parity with all
previously issued and outstanding investment certificates. At September
30, 1996 the Consolidated Group had approximately $67,717,000 of debt
senior to and approximately $1,367,000 of debt in parity with the
approximately $42,824,000 of outstanding Certificates. The Certificates
will be issued in fully negotiable form in fractional denominations of
$0.01 or multiples thereof at 100% of the principal amount paid. Summit
reserves the right to change, prospectively, by way of supplement to this
Prospectus, the interest rates, maturities, and minimum investment
amounts on unsold Certificates. The current provisions are set forth
below. See "DESCRIPTION OF CERTIFICATES".
<TABLE>
<CAPTION>
Pricing supplement effective September 2, 1997
MINIMUM TERM TO ANNUAL
INVESTMENT MATURITY INTEREST RATE
------------ ------------ ---------------
(Investment Certificates, Series A)
<S> <C> <C>
$ 100 12 to 23 MONTHS 6.35%
$ 100 24 to 35 MONTHS 6.50%
$1,000 36 to 47 MONTHS 6.75%
$1,000 48 to 59 MONTHS 7.00%
$1,000 60 to 71 MONTHS 8.00%
$ 100 72 to 120 MONTHS 8.25%
(Installment Certificates)
$2,000 60 to 120 MONTHS 6.50%
</TABLE>
<TABLE>
<CAPTION>
PREFERRED STOCK, SERIES S-3
PRICE DISTRIBUTION
PER SHARE FORMULA (Applicable Rate)
<S> <C>
$100 The greater of the per annum rate of
the Three-month U.S. Treasury Bill Rate, or
the Ten Year Constant Maturity Rate, or
the Twenty Year Constant Maturity Rate,
plus .5% (Minimum 6%/Maximum 14%)
</TABLE>
The Preferred Stock offered hereunder will be sold in whole or
fractional units. Preferred Stock distributions are cumulative and are
to be declared and paid monthly. See "DESCRIPTION OF PREFERRED STOCK-
Distributions". Preferred Stock may be redeemed, in whole or in part, at
the option of Summit at the redemption prices set forth herein. Under
certain limited circumstances, the Board of Directors may, in its sole
discretion and without any obligation to do so, redeem shares tendered
for redemption by stockholders. See "DESCRIPTION OF PREFERRED STOCK-
Redemption of Shares". In liquidation, Preferred Stock is subordinate to
all debts of Summit including Summit's Certificates, on parity with other
preferred stock and senior to Summit's common stock. See "DESCRIPTION OF
PREFERRED STOCK-Liquidation Rights".
There is no trading market for the Certificates or the Preferred
Stock and none is expected to be established in the future. See "RISK
FACTORS". A list of persons willing to sell or purchase Summit's issued
and outstanding shares of preferred stock is maintained by Metropolitan
Investment Securities, Inc., ("MIS") as a convenience to holders of
Summit's preferred stock. See "DESCRIPTION OF PREFERRED STOCK-Redemption
of Shares". This offering of Certificates and Preferred Stock is subject
to withdrawal or cancellation by Summit without notice. No minimum
amount of Certificates or Preferred Stock must be sold.
FOR A DISCUSSION OF MATERIAL RISKS ASSOCIATED WITH THE CERTIFICATES
AND PREFERRED STOCK OFFERED HEREBY SEE RISK FACTORS ON PAGE 11 OF THIS
PROSPECTUS.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION,
NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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<CAPTION>
PRICE TO PUBLIC
UNDERWRITING
DISCOUNTS AND
COMMISSIONS (1)
PROCEEDS TO ISSUER OR
OTHER PERSONS (2)
<S>
<C>
<C>
<C>
Per Certificate
100%
0% to 6%
100% to 94%
Total:
$40,00,000
None-$2,400,000
$40,000,000-37,600,000
Per Preferred
Share
$100
0% to 6%
100% to 94%
Total:
$15,000,000
None - $900,000
$15,000,000-$14,000,000
</TABLE>
(1) There is no direct sales charge to the investor.
Certificates earn interest, and Preferred Stock distributions are
calculated on their full respective offering prices, without deduction.
Summit will reimburse MIS, a wholly-owned subsidiary, for commissions
paid to licensed securities sales representatives. Sales commission rates
on the sale of Certificates depend upon the terms of the sale and upon
whether the sales are reinvestments or new purchases. See "PLAN OF
DISTRIBUTION".
(2) Before deducting other expenses estimated at $570,000.
The Certificates and Preferred Stock are being offered for sale on
a continuous, best efforts basis. There are no minimum amounts of
securities that must be sold. No offering will be made pursuant to this
Prospectus subsequent to January 31, 1998. The offering is subject to
NASD Rule 2720 (formerly Schedule E). See "PLAN OF DISTRIBUTION".
The date of this Prospectus is April 28, 1997.
