SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. __)
UNION ACCEPTANCE CORPORATION
(Name of Issuer)
CLASS A COMMON
(Title of Class of Securities)
904832102
(CUSIP Number)
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class
of securities, and for any subsequent amendment containing information
which would alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the
Securities Exchange Act of 1934 ("Act") or otherwise subject to the
liabilities of that section of the Act but shall be subject to all
other provisions of the Act (however, see the Notes).
(Continued on following page(s))
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CUSIP No. 904832102
1. Name of Reporting Person
S.S. or I.R.S. Identification No. of Above Person
Monarch Capital Management, Inc.
35-1923576
2. Check the appropriate box if a member of a group
[ ] a
[ ] b
3.
4. Citizenship or Place of Organization
127 West Berry Street, Suite 402
Fort Wayne, IN 46802
5. Sole Voting Power
51,800
6. Shared Voting Power
0
7. Sole Dispositive Power
636,957
8. Shared Dispositive Power
0
9. Aggregate Amount Beneficially Owned by Each Reporting Person
636,957
10. Check box if the Aggregate Amount in Row (9) Excludes Certain Shares
__________________
11. Percent of Class Represented by Amount in Row 9
14.6%
12. Type of Reporting Person
IA
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CUSIP No. 904832102
ITEM 1(A).NAME OF ISSUER.
Union Acceptance Corporation
ITEM 1(B).ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES.
250 North Shadeland Avenue
Indianapolis, Indiana 46219
ITEM 2(A).NAME OF PERSON FILING.
Monarch Capital Management, Inc.
ITEM 2(B).ADDRESS OF PRINCIPAL BUSINESS OFFICE, OR, IF NONE, RESIDENCE.
127 West Berry Street, Suite 402
Fort Wayne, Indiana 46802
ITEM 2(C).CITIZENSHIP.
Not applicable
ITEM 2(D).TITLE OF CLASS OF SECURITIES.
Union Acceptance Corporation Class A common stock
ITEM 2(E).CUSIP NUMBER.
904832102
ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO RULES 13D-1(B) OR
13D-2(B):
Monarch Capital Management, Inc., is an Investment Adviser
registered under section 8 of the Investment Advisers Act of
1940.
ITEM 4. OWNERSHIP.
ITEM 4(A).AMOUNT BENEFICIALLY OWNED:
Please refer to number 9 of the cover page.
<PAGE>
ITEM 4(B).PERCENT OF CLASS:
Please refer to number 11 of the cover page.
ITEM 4(C).NUMBER OF SHARES AS TO WHICH SUCH PERSON HAS:
Please refer to numbers 5, 6, 7 and 8 of the cover page.
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.
Not Applicable
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.
On March 5, 1997, Susan L. Hanzel entered into an investment
management contract with Monarch Capital Management, Inc., to
provide discretionary investment management for funds and
securities deposited in a custody account in the name of Ms.
Hanzel at Merrill Lynch. On December 15, 1997, 346,857 shares of
Union Acceptance Corporation Class A Common Stock were deposited
in this account over which Monarch Capital Management, Inc., has
sole dispositive power. A Schedule 13D, dated November 7, 1997,
has been filed by Ms. Hanzel who retains sole voting power and
the right to receive dividends and the proceeds from the sale of
these securities.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH
ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING
COMPANY.
Not Applicable
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.
Not Applicable
ITEM 9. NOTICE OF DISSOLUTION OF GROUP.
Not Applicable
ITEM 10. CERTIFICATION.
By signing below, I certify that, to the best of my knowledge and
belief, the securities referred to above were acquired in the
ordinary course of business and were not acquired for the purpose
of and do not have the effect of changing or influencing the
control of the issuer of such securities and were not acquired in
connection with or as a participant in any transaction having
such purposes or effect.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Date: February 13, 1998 /S/ MARGARET H. CANDOR
Margaret H. Candor, Vice President &
Treasurer
