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 quarterly period ended September 30, 1999
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-28340
AMERICAN TAX-EXEMPT BOND TRUST
(Exact name of registrant as specified in its charter)
Delaware 13-7033312
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
625 Madison Avenue, New York, New York 10022
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212)421-5333
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securi-
ties 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
the past 90 days. Yes X No ____
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
AMERICAN TAX-EXEMPT BOND TRUST
Balance Sheets
(Unaudited)
<CAPTION>
September 30, December 31,
1999 1998
<S> <C> <C>
ASSETS
Investment in First Mortgage
Bonds - at fair value (Note 2) $26,607,953 $26,607,953
Cash and cash equivalents 786,689 889,126
Organization costs (net of
accumulated amortization of
$50,000 and $37,500, respectively) 0 12,500
Accrued interest receivable 177,807 182,058
Total assets $27,572,449 $27,691,637
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Due to affiliates (Note 3) $ 829,251 $ 640,178
Accounts payable 22,128 21,000
Total liabilities 851,379 661,178
Shareholders' equity:
Beneficial owner's equity-manager (24,350) (19,941)
Beneficial owners' equity-
shareholders (1,498,198
and 1,488,661 shares
issued and outstanding,
respectively) 25,133,689 25,389,056
Treasury shares of beneficial
interest (31,428 and 25,140 shares,
respectively) (597,130) (477,660)
Accumulated other comprehensive
income:
Net unrealized gain on First
Mortgage Bonds 2,208,861 2,139,004
Total shareholders' equity 26,721,070 27,030,459
Total liabilities and shareholders' equity $27,572,449 $27,691,637
See Accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
AMERICAN TAX-EXEMPT BOND TRUST
Statements of Operations
(Unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Revenues
Interest income:
First Mortgage
Bonds (Note 2) $532,374 $531,489 $1,582,896 $1,552,043
Marketable Securities 4,610 7,064 14,481 24,781
Total revenues 536,984 538,553 1,597,377 1,576,824
Expenses:
General and
administrative 14,336 25,192 53,139 47,842
General and
administrative-
related parties
(Note 3) 18,000 32,349 66,049 65,165
Loan servicing fees 14,655 14,982 43,967 44,456
Amortization of
organization costs 0 2,500 12,500 7,500
Total expenses 46,991 75,023 175,655 164,963
Net income $489,993 $463,530 $1,421,722 $1,411,861
Allocation of net
income
Shareholders $455,672 $429,474 $1,319,240 $1,309,478
Manager 4,603 4,338 13,326 13,227
Special distributions
to Manager
(Note 3) 29,718 29,718 89,156 89,156
Net income $489,993 $463,530 $1,421,722 $1,411,861
Basic income per
weighted average
Beneficial Owners'
Equity-shareholders $ .31 $ .29 $ .90 $ .89
See Accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
AMERICAN TAX-EXEMPT BOND TRUST
Statement of Changes in Shareholders' Equity
(Unaudited)
<CAPTION>
Accumulated
Beneficial Beneficial Treasury Other
Owners' Owner's Shares of Compre- Compre-
Equity- Equity- Beneficial hensive hensive
Total Shareholders Manager Interest Income Income
<S> <C> <C> <C> <C> <C> <C>
Balance
at
January
1, 1999 $27,030,459 $25,389,056 $(19,941) $(477,660) $2,139,004
Issuance
of
shares of
beneficial
ownership
interest 181,209 181,209 0 0 0
Compre-
hensive
Income:
Net income
nine months
ended
September
30, 1999 1,421,722 1,319,240 102,482 0 0 $1,421,722
Other
Comprehensive
Income:
Net
unrealized
gain on
First
Mortgage
Bonds 69,857 0 0 0 69,857 69,857
Distri-
butions (1,862,707) (1,755,816) (106,891) 0 0
Purchase
of
treasury
shares of
beneficial
interest (119,470) 0 0 (119,470) 0
Total
compre-
hensive
income: $1,491,579
Balance at
September
30, 1999 $26,721,070 $25,133,689 $(24,350) $(597,130) $2,208,861
See Accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
AMERICAN TAX-EXEMPT BOND TRUST
Statements of Cash Flows
(Unaudited)
<CAPTION>
Nine Months Ended
September 30,
1999 1998
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,421,722 $ 1,411,861
Adjustments to reconcile net
income to net cash
provided by operating activities
Amortization expense-
organization costs 12,500 7,500
Amortization expense-loan
origination costs 69,857 73,461
Changes in operating assets and
liabilities:
Decrease in accrued
interest receivable 4,251 3,889
Increase in due to affiliates 189,073 170,334
Increase (decrease) in accounts payable 1,128 (9,900)
Total adjustments 276,809 245,284
Net cash provided by operating
activities 1,698,531 1,657,145
Cash flows from investing activities:
Purchase of marketable securities 0 (200,000)
Increase in deferred costs 0 (26,614)
Net cash used in investing activities 0 (226,614)
Cash flows from financing activities:
Proceeds from issuance of shares
of beneficial interest 181,209 177,939
Distributions to shareholders (1,862,707) (1,863,551)
Purchase of treasury shares of
beneficial interest (119,470) (258,039)
Net cash used in
financing activities (1,800,968) (1,943,651)
Net decrease in cash and
cash equivalents (102,437) (513,120)
Cash and cash equivalents at
beginning of period 889,126 1,081,939
Cash and cash equivalents at
end of period $ 786,689 $ 568,819
See Accompanying Notes to Financial Statements.
</TABLE>
<PAGE>
AMERICAN TAX-EXEMPT BOND TRUST
Notes to Financial Statements
September 30, 1999
(Unaudited)
Note 1 - General
American Tax-Exempt Bond Trust (the "Trust") was formed on
December 23, 1993 as a Delaware business trust for the primary
purpose of investing in tax-exempt first mortgage bonds ("First
Mortgage Bonds") issued by various state or local governments or
their agencies or authorities and secured by first mortgage loans
on multifamily residential apartment and retirement community
projects. Related AMI Associates, Inc. is the Manager ("Manager")
of the Trust.
Pursuant to the Redemption Plan which became effective October
15, 1996, the Trust is required to redeem eligible shares presented
for redemption for cash to the extent it has sufficient net proceeds
from the sale of shares under the Reinvestment Plan. As of Sep-
tember 30, 1999, the backlog of shares to be redeemed is 30,129.
The Trust has invested the Net Proceeds primarily in First Mort-
gage Bonds issued by various state or local governments or their
agencies or authorities which are secured by first mortgages and
related first mortgage loans financed by such bonds (collectively,
"Mortgage Loans") on multifamily residential apartment projects
owned or to be developed by third-party developers and, to a
lesser extent, by Affiliates of the Manager. The Trust is also per-
mitted to invest in other tax-exempt securities which have shorter
maturities than First Mortgage Bonds ("Tax-Exempt Securities").
However, all Tax-Exempt Securities owned by the Trust have
matured and the Trust does not anticipate making additional in-
vestments in Tax-Exempt Securities.
The Trust follows the provisions of the Financial Accounting
Standards Board's Statement of Financial Accounting Standards
("SFAS") SFAS No. 115 Accounting for Certain Investments in
Debt and Equity Securities. At September 30, 1999 and December
31, 1998, the Trust has classified its first mortgage bonds and mar-
ketable securities as available for sale.
The books and records of the Trust are maintained on the accrual
basis of accounting in accordance with Generally Accepted Ac-
counting Principles. In the opinion of the Manager, the accompa-
nying unaudited financial statements contain all adjustments (con-
sisting only of normal recurring adjustments) necessary to present
fairly the financial position of the Trust as of September 30, 1999,
the results of operations for the three and nine months ended Sep-
tember 30, 1999 and 1998 and its cash flows for the nine months
ended September 30, 1999 and 1998. However, the operating
results for the nine months ended September 30, 1999 may not be
indicative of the results for the year.
Certain information and note disclosures normally included in
financial statements prepared in accordance with generally ac-
cepted accounting principles have been omitted. It is suggested
that these financial statements be read in conjunction with the
financial statements and notes thereto included in the Trust's An-
nual Report on Form 10-K for the year ended December 31, 1998.
Note 2 - Investment in First Mortgage Bonds
General
The cost basis of the First Mortgage Bonds was $24,399,092 and
$24,468,949 at September 30, 1999 and December 31, 1998. The net
unrealized gain on First Mortgage Bonds of $2,208,861 and
$2,139,004 as of September 30, 1999 and December 31, 1998, re-
spectively, consists of gross unrealized gains and losses of
$2,208,861 and $0, respectively, at September 30, 1999 and
$2,150,794 and $11,790, respectively, as of December 31, 1998.
<TABLE>
AMERICAN TAX-EXEMPT BOND TRUST
Notes to Financial Statements
September 30, 1999
(Unaudited)
Note 2 - Investment in First Mortgage Bonds
Information relating to investments in First Mortgage Bonds as of
September 30, 1999 and December 31, 1998 are as follows:
<CAPTION>
Date of Accumu-
Invest- Outstanding lated
ment/ Loan Loan Amorti- Unrealized
Final Balance at Origina- zation at Gain at
Descrip- Maturity September tion September September
Property tion Date 30, 1999 Costs 30, 1999 30, 1999
<S> <C> <C> <C> <C> <C> <C>
Reflections
Apartments 336
Casselbury, Apt. 12/95 -
Florida (A) Units 12/25 $10,700,000 $293,914 $(110,218) $1,401,694
Rolling Ridge
Apartments 110
Chino Hills, Apt. 8/96-
California(B) Units 8/26 4,925,000 241,725 (76,546) 462,879
Lexington
Trails
Apartments 200
Houston, Apt. 5/97-
Texas (C) Units 5/22 4,900,000 123,886 (29,939) 335,685
Highpointe
Apartments
Harrisburg, 240
Pennsylvania Apt. 9/97-
(D) Units 6/06 3,250,000 237,917 (56,647) 8,603
$23,775,000 $897,442 $(273,350) $2,208,861
<CAPTION>
Debt
Service
Earned Less Net
Balance at Balance at by the 1999 Interest
September December Trust Amorti- Earned
Property 30, 1999 31, 1998 for 1999 zation for 1999
<S> <C> <C> <C> <C> <C>
Reflections
Apartments
Casselbury,
Florida (A) $12,285,390 $12,285,390 $ 743,294 $(22,044) $ 721,250
Rolling Ridge
Apartments
Chino Hills,
California(B) 5,553,058 5,553,058 359,334 (18,129) 341,205
Lexington
Trails
Apartments
Houston,
Texas (C) 5,329,632 5,329,632 330,750 (9,291) 321,459
Highpointe
Apartments
Harrisburg,
Pennsylvania
(D) 3,439,873 3,439,873 219,375 (20,393) 198,982
$26,607,953 $26,607,953 $1,652,753 $(69,857) $1,582,896
(A) The interest rate for the Reflections is 9.00%. In addition to the
interest rate the Trust will be entitled to 25% of the cash flow, as defined.
(B) The interest rate for the Rolling Ridge is 9.00%. In addition to the
interest rate the Trust will be entitled to 30% of the cash flow, as defined.
(C) The interest rate for the Lexington Trails is 9.00%.
(D) The interest rate for the Highpointe is 9.00%.
</TABLE>
Note 3 - Related Party Transactions
<TABLE>
The costs incurred to related parties for the three and nine months
ended September 30, 1999 and 1998 were as follows:
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Special distribu-
tions (i) $ 29,718 $ 29,718 $ 89,156 $ 89,156
Expense reimburse-
ments (iii) 18,000 32,349 66,049 65,165
$ 47,718 $ 62,067 $155,205 $154,321
</TABLE>
In accordance with the Trust Agreement, the Manager received or
is entitled to receive (i) special distributions calculated as a per-
centage of total assets invested by the Trust; the total amount ac-
crued and unpaid as of September 30, 1999 and December 31, 1998
amounted to $285,078 and $195,922, respectively; (ii) a subordi-
nated incentive fee based on the gain on the sale of the tax-exempt
First Mortgage Bonds; (iii) reimbursement of certain administra-
tive costs incurred by the Manager or an affiliate on behalf of the
Trust; the total amount accrued and unpaid as of September 30,
1999 and December 31, 1998 amounted to $439,948 and $373,899,
respectively.
Note 4 - Subsequent Event
On November 2, 1999, Charter Municipal Mortgage Acceptance
Company ("CharterMac"), and the Trust entered into a merger
agreement pursuant to which the Trust would merge with and
into a wholly-owned subsidiary of CharterMac, CM Holding
Trust. Following the merger, CM Holding Trust would continue
to be a wholly-owned subsidiary of CharterMac. CharterMac
(which is listed on the American Stock Exchange) and the Trust
are both managed by affiliates of Related Capital Company.
Under the terms of the merger agreement, each share of beneficial
ownership of the Trust outstanding on the effective date of the
proposed merger will be converted into the right to receive
1.43112 shares of beneficial interest in CharterMac. Following the
merger, current Trust shareholders will own approximately 9.3%
of the outstanding common shares of CharterMac.
Consummation of the merger is subject to several conditions, in-
cluding, without limitation, approval of the merger by the Trust's
shareholders. In addition, either entity has the ability to opt out of
the transaction if the 30-day average trading price of CharterMac
shares preceding the closing of the transaction is outside of Char-
terMac's historical trading range of $11.13 and $14.50 per share.
The companies expect to file a joint consent solicita-
tion/prospectus in the near future with the Securities and Ex-
change Commission ("SEC"). Following review of such materials
by the SEC, the merger will be presented to the Trust's sharehold-
ers for their approval. Subject to the Trust's shareholders ap-
proval, CharterMac and the Trust expect that the transaction will
close during the first quarter of 2000.
In November 1999, it is anticipated that distributions of approxi-
mately $586,000 and $6,000 will be paid to the Shareholders and
the Manager, respectively, representing the 1999 third quarter
distribution.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Con-
dition and Results of Operations.
Liquidity and Capital Resources
The Trust has invested the Net Proceeds primarily in First Mort-
gage Bonds issued by various state or local governments or their
agencies or authorities which are secured by first mortgages and
related first mortgage loans financed by such bonds (collectively,
"Mortgage Loans") on multifamily residential apartment projects
owned or developed by third-party developers and, to a lesser
extent, by Affiliates of the Manager. The First Mortgage Bonds
have maturities ranging from June 2006 to August 2026, although
the Trust anticipates holding the First Mortgage Bonds for ap-
proximately 10 to 12 years and has the right to cause repayment of
the bonds at that time. The Trust is also permitted to invest in
Tax-Exempt Securities. However, all Tax-Exempt Securities
owned by the Trust have matured and the Trust does not antici-
pate making additional investments in Tax-Exempt Securities.
The fair value of the First Mortgage Bonds has not changed during
the quarter ended September 30, 1999. Amortization of loan
origination costs of $69,857 for the nine months ended September
30, 1999, were offset by an increase in the unrealized gain on First
Mortgage Bonds. For a description of the Trust's investments in
First Mortgage Bonds see Note 2 of Notes to the Financial State-
ments.
During the nine months ended September 30, 1999, cash and cash
equivalents decreased approximately $102,000 due to distributions
to shareholders ($1,863,000) and the purchase of treasury shares of
beneficial interest ($119,000) which exceeded cash provided by
operating activities ($1,699,000) and proceeds from the issuance of
shares of beneficial interest ($181,000). Included in the adjust-
ments to reconcile the net income to cash provided by operating
activities is amortization in the amount of approximately $82,000.
Pursuant to the Redemption Plan which became effective October
15, 1996, the Trust is required to redeem eligible shares presented
for redemption for cash to the extent it has sufficient net proceeds
from the sale of shares under the Reinvestment Plan. As of Sep-
tember 30, 1999, the backlog of shares to be redeemed is 33,378.
The Trust expects that cash generated from its investments will be
sufficient to pay all of the Trust's expenses in the foreseeable fu-
ture. However, certain expense reimbursements totaling ap-
proximately $440,000 and $374,000 at September 30, 1999 and
December 31, 1998, respectively, and the payment of a portion of
the special distribution totaling approximately $285,000 and
$196,000 at September 30, 1999 and December 31, 1998, respec-
tively, to the Manager have been accrued and are unpaid. With-
out the Manager's continued accrual without payment of the
aforementioned expense reimbursements and special distributions
the Trust will not be in a position to maintain its current distribu-
tion level. The Manager has continued allowing the accrual with-
out payment of these amounts but is under no obligation to con-
tinue to do so.
The Trust anticipates that cash generated from the operations of
the properties underlying its investment in First Mortgage Bonds
(taking into account its preferred position relative to other credi-
tors) will be sufficient to meet the required debt service payments
to the Trust with respect to the First Mortgage Bonds for the fore-
seeable future.
Distribution Policy
The level of future distributions will depend upon results of opera-
tions. Beginning in 1998, the Trust's distribution policy calls for
quarterly distributions which more closely reflect collections.
Notwithstanding the foregoing, the Trust may continue to accrue
expenses and fees paid to the Manager. Although under no obli-
gation to do so, to date the Manager has continued to supplement
the amount available for distribution by continuing to defer pay-
ment of its fees. As a result, the Trust was able to maintain an
annual distribution rate of $1.60 per share.
The Manager is in the process of exploring ways to allow the Trust
to continue making distributions at, or near its current levels de-
spite the fact that collections do not currently permit the Trust to
do so and pay its expenses on a current basis. The manager ex-
pects to make an announcement of such a plan in the near future
although there can be no assurance as to when or if such an an-
nouncement will be made nor the terms of any proposal. Any
such proposal is expected to require shareholder approval prior to
its implementation.
Of the total distributions of $1,862,707 and $1,863,551 paid during
the nine months ended September 30, 1999 and 1998, $440,985
($.29 per share or 24%) and $451,960 ($.30 per share or 24%) repre-
sents a return of capital determined in accordance with generally
accepted accounting principles. As of September 30, 1999, the
aggregate amount of the distributions made since the commence-
ment of the Offering representing a return of capital, in accordance
with generally accepted accounting principles, totaled $2,535,018.
The portion of the distributions which constitute a return of capi-
tal was significant during the acquisition stage in order to main-
tain level distributions to shareholders.
Management expects that cash flow from operations and contin-
ued deferral of payment of the Manager's expense reimbursement,
special distribution and loan servicing fee, will be sufficient to
permit the funding of distributions at the current level in the near
future.
Results of Operations
The results of operations for the three and nine months ended
September 30, 1999 and 1998 consisted primarily of interest in-
come earned on First Mortgage Bonds and marketable securities,
net of general and administrative, general and administrative-
related parties and loan servicing fees.
Interest income from marketable securities decreased approxi-
mately $2,000 and $10,000 for the three and nine months ended
September 30, 1999 as compared to the corresponding periods in
1998 primarily due to higher cash and cash equivalent balances in
1998.
General and administrative expenses (decreased) and increased
approximately $(11,000) and $5,000 for the three and nine months
ended September 30, 1999 as compared to the corresponding peri-
ods in 1998. The decrease for the three months was primarily due
to a decrease in printing and computer consulting fees. The in-
crease for the nine months was primarily due to an increase in
legal fees.
General and administrative-related parties decreased approxi-
mately $14,000 for the three months ended September 30, 1999 as
compared to the corresponding period in 1998 primarily due to
higher expense reimbursements to affiliates of the Manager in the
third quarter of 1998.
Amortization of organization costs increased approximately
$5,000 for the nine months ended September 30, 1999 as compared
to the corresponding period in 1998 due to the adoption of State-
ment of Position 98-5 Reporting on Costs of Start-Up Activity,
pursuant to which the Trust expensed all unamortized organiza-
tion costs as of January 1, 1999.
Accounting Standards Issued but not yet Adopted
In June 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 133 ("SFAS 133")
"Accounting for Derivative Instruments and Hedging Activities".
The Statement establishes accounting and reporting standards for
derivative instruments and hedging activities. This Statement is
effective for all fiscal quarters of fiscal years beginning after June
15, 2000. The adoption of SFAS 133 is not expected to have any
impact on the financial position or results of operations of the
Trust.
Year 2000 Compliance
The Trust utilizes the computer services of an affiliate of the Man-
ager. The affiliate of the Manager has upgraded its computer
information systems to be year 2000 compliant. The most likely
worst case scenario that the Trust faces is that computer opera-
tions will be suspended for a few days to a week at January 1,
2000. The Trust's contingency plan is to have (i) a complete
backup done on December 31, 1999 and (ii) both electronic and
printed reports generated for all critical data up to and including
December 31, 1999.
In regard to third parties, the Trust's Manager is in the process of
evaluating the potential adverse impact that could result from the
failure of material service providers to be year 2000 compliant. A
detailed survey and assessment was sent to material third parties
in the fourth quarter of 1998. The Trust has received assurances
from a majority of the material service providers with which it
interacts that they have addressed the year 2000 issues and is
evaluating these assurances for their adequacy and accuracy. In
cases where the Trust has not received assurances from third par-
ties, it is initiating further mail and/or phone correspondence.
The Trust relies heavily on third parties and is vulnerable to the
failures of third parties to address their year 2000 issues. There
can be no assurance given that the third parties will adequately
address their year 2000 issues.
Item 3. Quantitative and Qualitative Disclosures about Market
Risk
The Trust is exposed to interest rate risk as it relates to its invest-
ments in First Mortgage Bonds. At September 30, 1999, 96% of the
Trusts assets are invested in four First Mortgage Bonds, all of
which have a fixed interest rate of 9% and maturities ranging from
10 to 30 years. The First Mortgage Bonds are classified as avail-
able for sale and are carried at fair value with a net unrealized
gain of $2,208,861 reported as a separate component of accumu-
lated other comprehensive income. Two First Mortgage Bonds,
representing 67% of the total investment in First Mortgage Bonds,
are also entitled to participation in the cash flow of the underlying
property, as defined.
The fair value of the First Mortgage Bonds is estimated by the
Manager based on the current interest rate environment for similar
securities, cash flow projections for the underlying properties, a
reversion estimate, prepayment assumptions and an estimate of
cash flow participation, when applicable. A 1% increase in the
current interest rate environment assumption at September 30,
1999 would result in a decrease of approximately $470,000 in the
net unrealized gain on First Mortgage Bonds.
The Trust's ultimate realized gain or loss as it relates to interest
rate fluctuations is dependent on when, and if, the Trust disposes
of the First Mortgage Bonds prior to maturity. The Trust has the
right to call the First Mortgage Bonds after a period of 10 to 12
years from the date of acquisition for face value. The First Mort-
gage Bonds are not allowed to be prepaid during the first five
years, and are subject to a prepayment premium in years nine
through ten.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities and Use of Proceeds - None
Item 3. Defaults Upon Senior Securities - 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
(a) 3. Exhibits
3(a) Certificate of Trust and Certificate of Amendment
of Certificate of Trust (incorporated by reference to Exhibit 3(a) to
the Registration Statement on Form S-11, File No. 33-73688).
3(b),4 Second Amended and Restated Business Trust
(incorporated by reference to Exhibit 3(b), 4 to the Registration
Statement on Form S-11, File No. 33-73688)
10(a) Escrow Agreement (incorporated by reference to
Exhibit 10(a) to the Registration Statement on Form S-11, File No.
33-73688).
10(b) Fee Agreement (incorporated by reference to Ex-
hibit 10 (b) to the Registration Statement on Form S-11, File No.
33-73688).
27 Financial Data Schedule (filed herewith)
(b) Reports on Form 8-K
No reports on Form 8-K have been filed during the quarter
ended September 30, 1999.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securi-
ties Exchange Act of 1934, the registrant has duly caused this re-
port to be signed on its behalf by the undersigned, thereunto duly
authorized.
AMERICAN TAX-EXEMPT BOND TRUST
(Registrant)
By: RELATED AMI ASSOCIATES, INC.,
as Manager
Date: November 9, 1999
By: /s/ Alan P. Hirmes
Alan P. Hirmes
Senior Vice President and
Principal Financial Officer
Date: November 9, 1999
By: /s/ Glenn F. Hopps
Glenn F. Hopps
Treasurer and
Principal Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial information extracted
from the financial statements for American Tax-Exempt Bond
Trust and is qualified in its entirety by reference to such financial
statements
</LEGEND>
<CIK> 0000916824
<NAME> American Tax-Exempt Bond Trust
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 786,689
<SECURITIES> 26,607,953
<RECEIVABLES> 177,807
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 27,572,449
<CURRENT-LIABILITIES> 851,379
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 26,721,070
<TOTAL-LIABILITY-AND-EQUITY> 27,572,449
<SALES> 0
<TOTAL-REVENUES> 1,597,377
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 175,655
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,421,722
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,421,722
<EPS-BASIC> .90
<EPS-DILUTED> 0
</TABLE>
