SEC Company Response from AMERICAN CHURCH MORTGAGE CO (CIK 0000934543) — Jun 21, 2005
AMERICAN CHURCH MORTGAGE CO (CIK 0000934543)
Date: June 21, 2005 · CIK: 0000934543 · Accession: 0000934543-05-000012
AI Filing Summary & Sentiment
Referenced dates: June 13, 2005
Letter
RE: American Church Mortgage Company Form 10-KSB for the year ended December 31, 2004 File No. 33-87570
June 21, 2005
Securities and Exchange Commission 450 Fifth Street, N.W. Washington, DC 20549
Attention: Robert Telewicz, Staff Accountant
Mr. Telewicz:
We are in receipt of the Commission's followup letter dated June 13, 2005 which requests additional information regarding the methodology used by American Church Mortgage Company ("ACMC") to calculate the fair market value of its bond portfolio. We have prepared the following response to the Commission's follow up question below.
Bond Portfolio, Page F-8
We believe that the 10 year Treasury Bond yield is a benchmark by which to value our bond portfolio since there is no active secondary market for church bonds. We have determined that if our average rate of return on our bond portfolio is 300 basis points over the 10 year Treasury Bond yield, that the fair market value our bond portfolio approximates cost.
<TABLE> <CAPTION>
Period 10 Year Bond Spread Bond Portfolio Bond Portfolio Ending Treasury Bond Portfolio (Basis Points) Cost Value Yield Yield <C> <C> <C> <C> <C> <C> <C> 12/31/2002 4.61% 8.89% 428 $ 4,356,637 $ 4,356,637 12/31/2003 4.01% 7.93% 392 $ 5,485,286 $ 5,485,286 12/31/2004 4.27% 7.53% 326 $ 8,498,001 $ 8,498,001 </TABLE>
If the Commission has any questions or needs any additional information, please contact Scott J. Marquis, Vice-President at (952) 252-0909 or the undersigned at (952) 952-0911.
Sincerely,
/s/ Philip J. Myers
Philip J. Myers
President
American Church Mortgage Company
Show Raw Text
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.txt
<TEXT>
June 21, 2005
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Attention: Robert Telewicz, Staff Accountant
RE: American Church Mortgage Company
Form 10-KSB for the year ended December 31, 2004
File No. 33-87570
Mr. Telewicz:
We are in receipt of the Commission's followup letter dated June 13, 2005
which requests additional information regarding the methodology used by American
Church Mortgage Company ("ACMC") to calculate the fair market value of its bond
portfolio. We have prepared the following response to the Commission's follow up
question below.
Bond Portfolio, Page F-8
We believe that the 10 year Treasury Bond yield is a benchmark by which to
value our bond portfolio since there is no active secondary market for church
bonds. We have determined that if our average rate of return on our bond
portfolio is 300 basis points over the 10 year Treasury Bond yield, that the
fair market value our bond portfolio approximates cost.
<TABLE>
<CAPTION>
Period 10 Year Bond Spread Bond Portfolio Bond Portfolio
Ending Treasury Bond Portfolio (Basis Points) Cost Value
Yield Yield
<C> <C> <C> <C> <C> <C> <C>
12/31/2002 4.61% 8.89% 428 $ 4,356,637 $ 4,356,637
12/31/2003 4.01% 7.93% 392 $ 5,485,286 $ 5,485,286
12/31/2004 4.27% 7.53% 326 $ 8,498,001 $ 8,498,001
</TABLE>
If the Commission has any questions or needs any additional information,
please contact Scott J. Marquis, Vice-President at (952) 252-0909 or the
undersigned at (952) 952-0911.
Sincerely,
/s/ Philip J. Myers
Philip J. Myers
President
American Church Mortgage Company
</TEXT>
</DOCUMENT>