Securities Lawyer's Deskbook                          published by The University of Cincinnati College of Law

Rule 12-23 -- Mortgage Loans on Real Estate and Interest Earned on Mortgages (1)

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Part 1 - Mortgage loans on real estate at close of period                          Part 2 - Interest earned 
                                                                                         on mortgages
                                                                                               Column
                                                                         Column     Column        G - 
                                    Column C -    Column D - Amount of     E -     F - Inter-  Interest
Column A - List by clas-   Column   Carrying       principal unpaid at   Amount     est due     income
 sification indicated     B - Prior  amount             close            of mort-    and        earned
    below 2,3,7            liens 2     of             of period           gage      accrued    applica-
                                     mortgage    _____________________    being    at end of    ble to
                                    8,9,10,11                           foreclosed  period 6   period 5
                                                           (2)- Sub-
                                                             ject to
                                                 (1) -       delin-
                                                 Total       quent
                                                            interest 4

Liens on:
   Farms (total)................................
   Residential (total)..........................
   Apartments and business (total)..............
   Unimproved (total)...........................
                                                ___________________________________________________________
     Total 12 ..................................

1. All money columns shall be totaled.


2. If mortgages represent other than first liens, list separately in a schedule in a like manner, indicating briefly the nature of the lien. Information need not be furnished as to such liens which are fully insured or wholly guaranteed by an agency of the United States Government.


3. In a separate schedule classify by states in which the mortgaged property is located the total amounts in support of columns B, C, D and E.


4.



(a) Interest in arrears for less than 3 months may be disregarded in computing the total amount of principal subject to delinquent interest.


(b) of the total principal amount, state the amount acquired from controlled and other affiliates.



5. In order to reconcile the total of column G with the amount shown in the profit and loss or income statement, interest income earned applicable to period from mortgages sold or canceled during period should be added to the total of this column.


6. If the information required by columns F and G is not reasonably available because the obtaining thereof would involve unreasonable effort or expense, such information may be omitted if the registrant shall include a statement showing that unreasonable effort or expense would be involved. In such an event, state in column G for each of the above classes of mortgage loans the average gross rate of interest on mortgage loans held at the end of the fiscal period.


7. Each mortgage loan included in column C in an amount in excess of $500,000 shall be listed separately. Loans from $100,000 to $500,000 shall be grouped by $50,000 groups, indicating the number of loans in each group.


8. In a footnote to this schedule, furnish a reconciliation, in the following form, of the carrying amount of mortgage loans at the beginning of the period with the total amount shown in column C:

        Balance at beginning of period.................$___________

          Additions during period:

            New mortgage loans.........................$___________

            Other (describe)...........................$___________

          Deductions during period:

            Collections of principal...................$___________

            Foreclosures................................___________

            Cost of mortgages sold......................___________

            Amortization of premium.....................___________

            Other (describe)............................___________

        Balance at close of period.....................$___________

If additions represent other than cash expenditures, explain. If any of the changes during the period result from transactions, directly or indirectly with affiliates, explain the bases of such transactions, and amounts involved. State the aggregate amount of mortgages (a) renewed and (b) extended. If the carrying amount of the new mortgages is in excess of the unpaid amount (not including interest) of prior mortgages, explain.


9. If any item of mortgage loans on real estate investments has been written down or reserved against pursuant to Rule 6-21 describe the item and explain the basis for the write-down or reserve.


10. State in a footnote to column C the aggregate cost for Federal income tax purposes.


11. If the total amount shown in column C includes intercompany profits, state the bases of the transactions resulting in such profits and, if practicable, state the amounts thereof.


12. Summarize the aggregate amounts for each column applicable to -captions 6(b), 6(c) and 12 of Rule 6-22.

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