College & University Facility Loan Trust One N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number:			811-05291
College and University Facility Loan Trust One
(Exact name of registrant as specified in charter)
c/o U.S. Bank  One Federal Street  Boston, MA					02110
(Address of principal executive offices)					(Zip code)
James Byrnes U.S. Bank Corporate Trust Services One Federal Street Boston, MA 02110
(Name and address of agent for service)
Registrant’s telephone number, including area code:				(617) 603-6442
Date of fiscal year end:	November 30
Date of reporting period:		December 1, 2008 – May 31, 2009

ITEM 1.  REPORT TO STOCKHOLDERS.

College and University

Facility Loan Trust One

Statement of Assets and Liabilities

May 31,	2009
Assets:
Investments, at amortized cost, net of allowance for loan losses of $460,000 (Notes 1, 2, 6, 7 and 8, and Schedule of Investments)	$	24,905,136
Cash	50,000
Prepaid expenses	16,703
Interest receivable	440,065
Deferred bond issuance costs (Note 2)	89,374
Total assets	25,501,278
Liabilities:
Bonds payable (Notes 3 and 8)	13,923,572
Interest payable (Note 3)	734,468
Accrued expenses and other liabilities	179,827
Distributions payable to Class B certificateholders (Note 5)	348,518
Total liabilities	15,186,385
Net Assets:
Class B certificates, par value $1 - authorized, issued and outstanding — 1,001,643 certificates (Note 5)	1,001,643
Accumulated deficit (Notes 2 and 5)	(500,027		)
Additional paid-in capital (Note 2)	9,813,277
Total net assets	$	10,314,893
Net asset value per Class B certificate (based on 1,001,643 certificates outstanding)	$	10.30

See accompanying accountants’ compilation report and notes to financial statements.

3

College and University

Facility Loan Trust One

Statement of Operations

Six months ended May 31,	2009
Investment income:
Interest income (Note 2)	$	1,270,946
Expenses:
Interest expense (Notes 2 and 3)	751,341
Servicer fees (Note 4)	16,219
Trustee fees (Note 4)	19,658
Other trust and bond administration expenses	175,237
Total expenses	962,455
Net investment income	308,491
Net increase in net assets resulting from operations	$	308,491

See accompanying accountants’ compilation report and notes to financial statements.

4

College and University

Facility Loan Trust One

Statement of Cash Flows

Six months ended May 31,	2009
Cash flows from operating activities:
Interest received	$	611,229
Interest paid	(800,847		)
Operating expenses paid	(271,525		)
Net decrease in funds held under investment agreements	363,435
Principal payments on Loans	1,798,569
Net cash provided by operating activities	1,700,861
Cash flows from financing activities:
Principal repayments on Bonds	(1,258,366		)
Distributions to Class B certificateholders	(446,094		)
Net cash used for financing activities	(1,704,460		)
Net decrease in cash	(3,599		)
Cash, beginning of period	53,599
Cash, end of period	$	50,000
Reconciliation of net increase in net assets resulting from operations to net cash provided by operating activities:
Net increase in net assets resulting from operations	$	308,491
Decrease in interest receivable	(15,886		)
Increase in prepaid expense	(16,703		)
Increase in accrued expenses and other liabilities	(43,708		)
Decrease in Bond interest payable	(66,379		)
Decrease in investment contracts	363,435
Decrease in loan principal balance	1,798,569
Amortization of deferred Bond issuance costs	16,873
Amortization of purchase discount on Loans	(643,831		)
Net cash provided by operating activities	$	1,700,861

See accompanying accountants’ compilation report and notes to financial statements.

5

College and University

Facility Loan Trust One

Statement of Changes in Net Assets

(Note 2(f))

	Six Months
	Ended			Year Ended
	May 31,			November 30,
	2009			2008
From operations:
Net investment income	$	308,491		$	499,123
Reduction in reserve for loan losses	—			—
Net increase in net assets applicable to Class B certificateholders resulting from operations	308,491			499,123
Distributions to Class B certificateholders from:
Tax return of capital (Note 5)	(348,518		)	(614,823		)
Net decrease in net assets	(40,027		)	(115,700		)
Net assets:
Beginning of period	10,354,920			10,470,620
End of period	$	10,314,893		$	10,354,920

See accompanying accountants’ compilation report and notes to financial statements.

6

College and University

Facility Loan Trust One

Financial Highlights

(Notes 1 and 5)

	Six Months Ended May 31,			Years Ended November 30,
	2009			2008			2007			2006			2005			2004
	(Unaudited)			(Audited)
Net asset value, beginning of period	$	10.34		$	10.45		$	10.52		$	10.86		$	10.88		$	10.88
Net investment income	.31			0.50			0.84			.66			2.14			2.08
Reduction of reserve for loan losses	—			—			0.10			.10			.20			.10
Distributions to Class B certificateholders	(0.35		)	(0.61		)	(1.01		)	(1.10		)	(2.36		)	(2.18		)
Net asset value, end of period	$	10.30		$	10.34		$	10.45		$	10.52		$	10.86		$	10.88
Total investment return (a)	N/A			N/A			N/A			N/A			N/A			N/A
Net assets applicable to Class B certificates, end of period	$	10,314,893		$	10,354,920		$	10,470,620		$	10,540,720		$	10,882,199		$	10,902,371
Ratios and Supplemental Data:
Ratio of operating expenses to average net assets applicable to Class B certificates	9.31		%	21.08		%(b)	23.47		%(b)	26.24		%(b)	30.05		%(b)	33.79		%(b)
Ratio of net investment income to average net assets applicable to Class B certificates	2.98		%	4.79		%	8.00		%	6.20		%	19.66		%	19.12		%
Number of Class B certificates outstanding, end of period	1,001,643			1,001,643			1,001,643			1,001,643			1,001,643			1,001,643

(a)	The Trust’s investments are recorded at amortized cost as discussed in Note 2. Accordingly, the financial statements do not reflect the market value of such investments. For this reason, management believes that no meaningful information can be provided regarding “Total Investment Return” and has not included information under that heading. In addition, as the Trust’s investments are not traded, management believes that no meaningful information can be provided regarding portfolio turnover.
(b)	Excluding interest expense, the ratio of operating expenses to average net assets applicable to Class B Certificates was 4.09% (c), 4.51%, 4.28%, 4.24%, 4.83% and 4.51% in 2009, 2008, 2007, 2006, 2005 and 2004, respectively.
(c)	Annualized.

See accompanying accountants’ compilation report and notes to financial statements.

7

College and University

Facility Loan Trust One

Notes to Financial Statements

1.  Organization and Business College and University Facility Loan Trust One (the Trust) was formed on September 17, 1987 as a business trust under the laws of the Commonwealth of Massachusetts by a declaration of trust by the Bank of Boston (the Owner Trustee), succeeded by State Street Bank and Trust Company, succeeded by US Bank (successor Owner Trustee), not in its individual capacity but solely as Owner Trustee. The Trust is registered under the Investment Company Act of 1940 (as amended) as a diversified, closed-end, management investment company.   The Trust was formed for the sole purpose of raising funds through the issuance and sale of bonds (the Bonds). The Trust commenced operations on September 29, 1987 (the Closing Date) and issued Bonds in five tranches in the aggregate principal amount of $126,995,000. The Bonds constitute full recourse obligations of the Trust. The collateral securing the Bonds consists primarily of a pool of college and university facility loans (the Loans) to various postsecondary educational institutions and funds held under the indenture (the Indenture) and the investment agreements. The Loans were originated by, or previously assigned to, the United States Department of Education (ED) under the College Housing Loan Program or the Academic Facilities Loan Program.The Loans, which have been assigned to The Bank of New York, National Association, as successor in interest to J.P. Morgan Trust Company, National Association, as successor in interest to Bank One Trust Company, NA, formerly The First National Bank of Chicago (the Bond Trustee), are secured by various types of collateral, including mortgages on real estate, general recourse obligations of the borrowers, pledges of securities and pledges of revenues. As of the Closing Date, the Loans had a weighted average stated interest rate of approximately 3.16% and a weighted average remaining term to maturity of approximately 19.4 years. Payments on the Loans are managed by the Bond Trustee in various fund accounts and are invested under investment agreements (see Note 2) as specified in the Indenture.

See accompanying accountants’ compilation report.

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College and University

Facility Loan Trust One

Notes to Financial Statements

1.   Organization and Business (Continued)

All payments on the Loans and earnings under the investment agreements and any required transfers from the Expense, Reserve and Liquidity Funds are deposited to the credit of the Revenue Fund held by the Bond Trustee, as defined within, and in accordance with the Indenture. On each bond payment date, amounts on deposit in the Revenue Fund are applied in the following order of priority: to pay amounts due on the Bonds, to pay administrative expenses not previously paid from the Expense Fund, to fund the Expense Fund to the Expense Fund Requirement, to fund the Reserve Fund to the Maximum Reserve Requirement and to fund the Liquidity Fund to the Liquidity Fund Requirement. Any funds remaining in the Revenue Fund on such payment date are paid to the Class B certificateholders, as discussed in Note 5. On the Closing Date, certificates were issued by the Trust to ED as partial payments for the Loans. In December 1989, ED sold, through a private placement, all of its ownership interest in the Trust.

2.   Summary of Significant Accounting Policies

(a)   College and University Facility Loans The Loans were purchased and recorded at a discount below par. Pursuant to a “no-action letter” that the Trust received from the Securities and Exchange Commission, the Loans, included in investments in the accompanying statement of assets and liabilities, are being accounted for under the amortized cost method of accounting, net of any allowance for loan loss. Under this method, the difference between the cost of each Loan to the Trust and the scheduled principal and interest payments is amortized, assuming no prepayments of principal, and included in the Trust’s income by applying the Loan’s effective interest rate to the amortized cost of that Loan. When a Loan prepays, the remaining discount is recognized as interest income in the same period. The remaining balance of the purchase discount on the Loans as of May 31, 2009 was approximately $6,001,000. As a result of prepayments of Loans during the period ended May 31, 2009, additional interest income of approximately $82,000 was recognized in the Statement of Operations.

See accompanying accountants’ compilation report.

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College and University

Facility Loan Trust One

Notes to Financial Statements

2.   Summary of Significant Accounting Policies (Continued) (a)       College and University Facility Loans (Continued)   The Trust’s policy is to generally discontinue the accrual of interest on Loans for which payment of principal or interest is 180 days or more past due or for other such Loans if management believes the collection of interest and principal is doubtful.  When a Loan is placed on nonaccrual status, all previously accrued, but uncollected interest is reversed against the current period’s interest income. Subsequently, interest income is generally recognized when received.  Payments are generally applied to interest first, with the balance, if any, applied to principal.  At May 31, 2009, two Loans have been placed on nonaccrual status, as discussed in Note 6.   The allowance for loan losses is based on the Trust’s evaluation of the level of the allowance required to reflect the risks in the loan portfolio, based on circumstances and conditions known or anticipated at each reporting date.  The methodology for assessing the appropriateness of the allowance consists of a review of the following three key elements:   (1)  a valuation allowance for loans identified as impaired, (2)  a formula-based general allowance for the various loan portfolio classifications, and (3)  an unallocated allowance.   A loan is impaired when, based on current information and events, it is probable that the Trust will be unable to collect all amounts due in accordance with the contractual terms of the loan agreement.  Loans identified as impaired are further evaluated to determine the estimated extent of impairment.   The formula-based general allowance is derived primarily from a risk-rating model that grades loans based on general characteristics of credit quality and relative risk.  As credit quality for individual loans deteriorates, the risk rating and the allowance allocation percentage increases.  The sum of these allocations comprise the Trust’s formula-based general allowance.

See accompanying accountants’ compilation report.

10

College and University

Facility Loan Trust One

Notes to Financial Statements

2.   Summary of Significant Accounting Policies (Continued)

(a)       College and University Facility Loans (Continued) In addition to the valuation and formula-based general allowance, there is an unallocated allowance.  This element recognizes the estimation risks associated with the valuation and formula-based models.  It is further adjusted for qualitative factors including, among others, general economic and business conditions, credit quality trends, and specific industry conditions. There are inherent uncertainties with respect to the final outcome of loans and as such, actual losses may differ from the amounts reflected in the financial statements. Accounting principles generally accepted in the United States of America (GAAP), requires that the Loans be accounted for under the fair value method of accounting.  However, management believes that the amortized cost method of accounting net of any allowance for loan loss best serves the informational needs of the users of the Trust’s financial statements.

(b)      Other Investments Other investments, which are included in investments in the accompanying statement of assets and liabilities, consist of two unsecured investment agreements issued by the Federal National Mortgage Association bearing fixed rates of interest of 5% and 8%.  These investments are carried at amortized cost.  These investment agreements terminate on the earlier of December 1, 2014 or the date on which the Bonds are paid-in-full. GAAP requires that the investments be accounted for under the fair value method of accounting.  However, management believes that the amortized cost method of accounting best serves the informational needs of the users of the Trust’s financial statements.

See accompanying accountants’ compilation report.

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College and University

Facility Loan Trust One

Notes to Financial Statements

2.   Summary of Significant Accounting Policies (Continued)

(c)       Federal Income Taxes It is the Trust’s policy to comply with the requirements applicable to a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and to distribute substantially all of its investment company taxable income to its certificateholders each year.  Accordingly, no federal or state income tax provision is required. For tax purposes, the Loans were transferred to the Trust at their face values.  Accordingly, the accretion of the purchase discount creates a permanent book-tax difference. The Trust adopted FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes-an Interpretation of FASB Statement No. 109 (“FIN 48”) effective December 1, 2007. FIN 48 requires the Trust to determine whether a tax position of the Trust is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. FIN 48 was applied to all existing tax positions upon initial adoption.  The Trust has evaluated the known implications of FIN 48 on its computation of net assets for the Trust. As a result of this evaluation, the Trust has concluded that FIN 48 did not have any effect on the Trust’s financial statements and no cumulative effect adjustments were recorded. The Trust’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

(d)      Deferred Bond Issuance Costs Deferred bond issuance costs are being amortized using the effective interest-rate method, assuming that all mandatory semiannual payments will be made on the term bonds as discussed in Note 3.

See accompanying accountants’ compilation report.

12

College and University

Facility Loan Trust One

Notes to Financial Statements

2.   Summary of Significant Accounting Policies (Continued) (e)       Presentation of Capital Distributions   Capital distributions are accounted for in accordance with the American Institute of Certified Public Accountants Statement of Position (SOP) 93-2, “Determination, Disclosure and Financial Statement Presentation of Income, Capital Gain and Return of Capital Distributions by Investment Companies.”  SOP 93-2 requires the Trust to report distributions that are in excess of tax-basis earnings and profits as a tax return of capital and to present the capital accounts on a basis that approximates the amounts that are available for future distributions on a tax basis.   As of November 30, 2006, all tax earnings and profits have been distributed.  Accordingly, all accumulated undistributed net investment income has been reclassified to additional paid-in capital.  This reclassification results from permanent book and tax differences such as the receipt of tax-exempt interest income on certain Loans, the related interest expense on the Bonds, and the accretion of purchase discount on the Loans. Amounts deducted for the loan loss reserve are not currently deductible for tax purposes and have been reclassified as an accumulated deficit. These reclassifications had no impact on the net investment income or net assets of the Trust.   The Trust expects to have a tax return of capital for the fiscal year ending November 30, 2009; however, the amount cannot be reasonably estimated at May 31, 2009.

See accompanying accountants’ compilation report.

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College and University

Facility Loan Trust One

Notes to Financial Statements

2.   Summary of Significant Accounting Policies (Continued)

(f)        Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires the Trust to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended.  On an on-going basis, the Trust evaluates the estimates used, including those related to the allowance for loan losses.  The Trust bases its estimates on historical experience, current conditions and various other assumptions that the Trust believes to be reasonable under the circumstances.  These estimates form the basis for making judgments about the carrying values of assets and liabilities and are not readily apparent from other sources.  These estimates are used to assist the Trust in the identification and assessment of the accounting treatment necessary with respect to commitments and contingencies.  Actual results may differ from these estimates under different assumptions or conditions.

(g)       Recent Accounting Pronouncements In May 2008, the FASB issued SFAS No. 162, The Hierarchy of Generally Accepted Accounting Principles (SFAS 162).  The current hierarchy of generally accepted accounting principles is set forth in the American Institute of Certified Public Accountants (AICPA) Statement on Auditing Standards (SAS) No. 69, The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles. SFAS 162 is intended to improve financial reporting by identifying a consistent framework, or hierarchy, for selecting accounting principles to be used in preparing financial statements that are presented in conformity with U.S. generally accepted accounting principles for nongovernmental entities. This Statement was effective November 15, 2008. The adoption of this statement did not have a material effect on the Trusts financial condition or results of operations, as the Statement does not directly impact the accounting principles applied in the preparation of the Trusts financial statements.

See accompanying accountants’ compilation report.

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College and University

Facility Loan Trust One

Notes to Financial Statements

3.   Bonds	The Bonds outstanding at May 31, 2009 consist of the following:
					Principal
		Interest		Stated	Amount
	Type	Rate		Maturity	(000’s)
	Term	10.55	%	December 1, 2014	$	13,924
	The Bonds are being redeemed, in part, on a pro rata basis by application of mandatory semiannual payments.  The redemption price is equal to 100% of the principal amount to be redeemed plus interest accrued to the redemption date.  Interest on the Bonds is payable semiannually. On June 1, 2009, the Trust made the mandatory redemption of $1,535,572 on the Bonds.  The average amount of Bond principal outstanding for the period ended May 31, 2009 was approximately $13,924,000.
	The aggregate scheduled maturities of the Bonds, including the scheduled mandatory redemptions at May 31, 2009, are as follows:
					Amount
	Fiscal Year				(000’s)
	2009				$	1,536
	2010				2,699
	2011				2,662
	2012				2,359
	2013				2,121
	Thereafter				2,547
	Total				$	13,924
	The Bonds are not subject to optional redemption by either the Trust or the bondholders.

See accompanying accountants’ compilation report.

15

College and University

Facility Loan Trust One

Notes to Financial Statements

3.   Bonds (Continued)	In the event the Trust realizes negative cash flows, various reserve funds have been established and maintained such that, on or before such bond payment date, such funds may be used by the Bond Trustee to make any required payments on the Bonds and to pay operating expenses of the Trust. There are currently no loans in default.  The cash flows from the June 1, 2009 Bond Payment Date were sufficient to satisfy the maximum reserve fund requirement of $5,970,812, as required by the Indenture.
4.   Administrative Agreements	(a)       Servicer
	As compensation for the services provided under the servicing agreement, Capmark Finance, Inc., formerly GMAC Commercial Mortgage, receives a servicing fee.  This fee is earned on each date of payment for each Loan and is equal to 0.055 of 1% of the outstanding principal balance of such Loan divided by the number of payments of principal and interest in a calendar year.  For the six months ended May 31, 2009, this fee totaled $16,219.
	(b)       Trustees As compensation for services provided, the Owner and Bond Trustees are entitled under the Declaration of Trust and the Indenture to receive the following fees:
	·	The Owner Trustee, in its capacities as manager of the Trust and as Owner Trustee, earned fees of $7,912 and $8,791, in according with the Declaration of Trust Agreement, respectively, for the six months ended May 31, 2009.
	·	The Bond Trustee is entitled to an annual fee equal to 0.025 of 1% of the aggregate outstanding principal of the Bonds on the bond payment date immediately preceding the date of payment of such fee.  The Bond Trustee is also reimbursed for out-of-pocket expenses in an amount not to exceed 4% of the applicable annual fee.  In addition, the Bond Trustee is reimbursed for other agreed-upon related expenses such as transaction costs.  For the six months ended May 31, 2009, total Bond

See accompanying accountants’ compilation report.

16

College and University

Facility Loan Trust One

Notes to Financial Statements

Trustee fees and related expenses amounted to $2,955.

See accompanying accountants’ compilation report.

17

College and University

Facility Loan Trust One

Notes to Financial Statements

5.   Certificates	Holders of each of the Class B certificates receive amounts paid to the Owner Trustee pursuant to the Declaration of Trust on a pro rata basis.  On June 1, 2009, a distribution of $348,518 was made to the Class B certificateholders.  This payment is reflected as a liability in the accompanying statement of assets and liabilities. While the Bonds are outstanding, distributions to the Class B certificateholders are made on the second business day in each June and December (the Distribution Date) and, after the Bonds are paid in full, on the first business day of each month.  The certificateholders shall each be entitled to one vote per certificate.
6.    Allowance for Loan Losses	An analysis of the allowance for loan losses for the six months ended May 31, 2009 is summarized as follows:
	Balance, beginning of period	$	460,000
	Reduction in reserve for loan losses	—
	Charge-offs	—
	Balance, end of period	$	460,000
	As discussed in Note 2(a), at May 31, 2009, there were two Loans on nonaccrual status, with an unpaid principal balance of approximately $95,000.  The recorded investment in these loans, approximately $90,000 with a related allowance for loan loss of $6,300, is not considered impaired, as we expect collection of future principal and interest payments.

See accompanying accountants’ compilation report.

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College and University

Facility Loan Trust One

Notes to Financial Statements

7.   Loans	Scheduled principal and interest payments on the Loans as of May 31, 2009, excluding payments for Loans in Default, as defined in the Indenture, are as follows:
		Principal		Interest
		Payments		Payments		Total
	Fiscal year	(000’s)		(000’s)		(000’s)
	2009	$	1,151	$	302	$	1,453
	2010	2,459		549		3,008
	2011	2,369		472		2,841
	2012	2,340		399		2,739
	2013	2,011		332		2,343
	Thereafter	9,277		770		10,047
	Total	$	19,607	$	2,824	$	22,431
	Expected payments may differ from contractual payments because borrowers may prepay or default on their obligations. Accordingly, actual principal and interest payments on the Loans may vary significantly from the scheduled payments.
	The following analysis summarizes the stratification of the Loan portfolio by type of collateral and institution as of May 31, 2009.
				Amortized
		Number		Cost
	Type of Collateral	of Loans		(000’s)		%
	Loans secured by a first mortgage	31		$	8,691	63.9		%
	Loans not secured by a first mortgage	16		4,913		36.1		%
	Total Loans	47		$	13,604	100.0		%

See accompanying accountants’ compilation report.

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College and University

Facility Loan Trust One

Notes to Financial Statements

7.   Loans (Continued)			Amortized
		Number	Cost
	Type of Institution	of Loans	(000’s)		%
	Private	15	$	5,660	41.6	%
	Public	32	7,944		58.4	%
	Total Loans	47	$	13,604	100.0	%
	The ability of a borrower to meet future debt service payments on a Loan will depend on a number of factors relevant to the financial condition of such borrower, including, among others, the size and diversity of the borrower’s sources of revenues; enrollment trends; reputation; management expertise; the availability and restrictions on the use of endowments and other funds; the quality and maintenance costs of the borrower’s facilities and, in the case of some Loans to public institutions which are obligations of a state, the financial condition of the relevant state or other governmental entity and its policies with respect to education.  The ability of a borrower to maintain enrollment levels will depend on such factors as tuition costs, geographical location, geographic diversity, quality of the student body, quality of the faculty and diversity of program offerings. The collateral for Loans that are secured by a mortgage on real estate generally consists of special purpose facilities, such as dormitories, dining halls and gymnasiums, which are integral components of the overall educational setting.  As a result, in the event of borrower default on a Loan, the Trust’s ability to realize the outstanding balance of the Loan through the sale of the underlying collateral may be negatively impacted by the special purpose nature and location of such collateral.

See accompanying accountants’ compilation report.

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College and University

Facility Loan Trust One

Notes to Financial Statements

8.   Fair Value of Financial Instruments Statement of Financial Accounting Standards No. 107, “Disclosures about Fair Value of Financial Instruments,” allows for the use of a wide range of valuation techniques; therefore, it may be difficult to compare the Trust’s fair value information to independent markets or to other fair value information.   Current market prices are not available for most of the Trust’s financial instruments since an active market generally does not exist for such instruments.  In accordance with the terms of the Indenture, the Trust is required to hold all of the Loans to maturity and to use the cash flows therefrom to retire the Bonds.  Accordingly, the Trust has estimated the fair values of its financial instruments, both Loans and Bonds, using a discounted cash flow methodology.  This methodology is similar to the approach used at the formation of the Trust to determine the carrying amounts of these instruments for financial reporting purposes.  In applying the methodology, the calculations have been adjusted for the change in the relevant market rates of interest, the estimated duration of the instruments and an internally developed credit risk rating of the instruments.  All calculations are based on the scheduled principal and interest payments on the Loans because the prepayment rate on these Loans is not subject to estimate and schedule payments on the Bonds.   The fair values of these long-term fixed-maturity investments are determined by adding a market rate adjustment to the carrying value of the investment. This market rate adjustment is calculated using the net present value of the difference between future interest income to the Trust at the issue rate and the future interest income at the current market rate through the maturity of the investment. The current market rate is based upon Fannie Mae bond rates at May 31, 2009, with similar maturity dates to the investment agreements.

See accompanying accountants’ compilation report.

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College and University

Facility Loan Trust One

Notes to Financial Statements

8.Fair Value of Financial Instruments (Continued)	The estimated fair value of the Trust’s financial instruments and the related book value presented in the accompanying statement of assets and liabilities as of May 31, 2009 are as follows:
		Amortized
		Cost			Fair Value
		(000’s)			(000’s)
	Loans	$	13,144	*	$	17,779
	Investment Agreements:
	Revenue Fund	7,570			7,580
	Liquidity Fund	4,191			4,600
		$	24,905		$	29,959
	Bonds payable	$	13,924		$	16,412

*Net of allowance for loan losses of $460,000.

See accompanying accountants’ compilation report.

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College and University

Facility Loan Trust One

Compiled Financial Statements

Six Months Ended May 31, 2009

COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE

SCHEDULE OF INVESTMENTS

May 31, 2009

(Dollar Amounts in Thousands)

(continued)

					Internal
Outstanding			Stated		Rate of	Amortized
Principal			Interest	Maturity	Return % (A)	Cost (Notes
Balance		Description	Rate %	Date	(Unaudited)	1 and 2)
		COLLEGE AND UNIVERSITY LOANS (52.8%)
		ALABAMA
$	80	Birmingham-Southern College	3.00	10/01/2010	12.47	$	73
1,116		University of Alabama	3.00	05/01/2021	12.27	683
164		University of Montevallo	3.00	05/01/2023	12.3	94
		CALIFORNIA
398		Azusa Pacific University	3.00	04/01/2017	12.96	268
170		Monterey Peninsula College	3.00	10/01/2018	11.95	115
260		San Diego State University	3.00	11/01/2021	11.93	161
540		San Francisco State University	3.00	11/01/2021	11.93	334
		INDIANA
75		Anderson College	3.00	03/01/2010	13.02	73
120		Taylor University	3.00	10/01/2010	12.45	109
930		University of Notre Dame	3.00	04/01/2018	12.95	604
		MARYLAND
690		Western Maryland College	3.00	11/01/2016	12.44	494
		MASSACHUSETTS
140		Atlantic Union College	3.00	11/01/2023	12.68	78
594		Boston University	3.00	12/31/2022	11.87	349
32		Springfield College	3.00	05/01/2011	12.59	29
		MICHIGAN
640		Albion College	3.00	10/01/2015	12.51	474
1,995		Finlandia University	3.50	08/01/2014	12.70	1,166
		MINNESOTA
640		Augsburg College	3.00	04/01/2016	12.95	449
295		College of St. Thomas	3.00	04/01/2017	12.95	200
		MISSISSIPPI
20		Mississippi Valley State	3.00	07/01/2008	11.89	20
		NEBRASKA
49		University of Nebraska	3.00	07/01/2013	10.59	41

The accompanying notes are an integral part of this schedule.

23

					Internal
Outstanding			Stated		Rate of	Amortized
Principal			Interest	Maturity	Return % (A)	Cost (Notes
Balance		Description	Rate %	Date	(Unaudited)	1 and 2)
		NEW HAMPSHIRE
$	185	Daniel Webster College	3.00	04/01/2019	12.99	$	115
148		New England College	3.625	10/01/2013	12.37	122
565		New England College	3.00	04/01/2019	12.96	354
		NEW JERSEY
70		Fairleigh Dickinson University	3.00	11/01/2020	12.09	44
		NEW YORK
324		Long Island University	3.00	06/01/2016	12.34	232
707		Sarah Lawrence College	3.00	11/01/2021	12.64	429
		NORTH CAROLINA
61		Montreat-Anderson College	3.00	12/01/2019	12.19	38
735		University of North Carolina	3.00	01/01/2018	11.49	506
		OHIO
905		Case Western Reserve University	3.00	04/01/2016	10.54	688
76		University of Steubenville	3.375	04/01/2012	12.88	63
166		University of Steubenville	3.00	04/01/2017	12.96	112
		PENNSYLVANIA
319		Carnegie - Mellon University	3.00	11/01/2017	10.45	238
335		Harcum Junior College	3.00	11/01/2015	12.44	250
53		Swarthmore College	3.00	05/01/2014	12.30	42
198		Temple University	3.375	11/01/2014	11.99	160
		RHODE ISLAND
206		Community College of Rhode Island	3.00	04/01/2018	12.10	142
		SOUTH CAROLINA
492		College of Charleston	3.00	07/01/2016	12.02	356
368		Morris College	3.00	11/01/2013	12.42	296
		TENNESSEE
21		Bryan College	3.00	02/01/2010	12.68	19
39		Vanderbilt University	3.00	06/30/2009	10.39	37
		TEXAS
26		Laredo Junior College	3.00	08/01/2009	11.82	25
65		St. Edward’s University	3.625	04/01/2013	12.80	53
233		Texas Tech University	3.625	03/01/2013	10.80	196
1,230		Texas Tech University	3.375-3.50	03/01/2012	10.83	1,067
		VERMONT
595		Middlebury College	3.00	04/01/2018	12.87	405
1,715		University of Vermont	3.00	10/01/2019	12.19	1,138

The accompanying notes are an integral part of this schedule.

24

COLLEGE AND UNIVERSITY FACILITY LOAN TRUST ONE

SCHEDULE OF INVESTMENTS

May 31, 2009

(Dollar Amounts in Thousands)

(continued)

							Internal
Outstanding				Stated			Rate of	Amortized
Principal				Interest	Maturity		Return % (A)	Cost (Notes
Balance			Description	Rate %	Date		(Unaudited)	1 and 2)
			VIRGINIA
$	820		Old Dominion University	3.00	06/01/2013		11.70	$	663
19,605			Total College and University Loans					13,604
			Allowance for Loan Losses					460
			Net Loans of the Trust					13,144
			INVESTMENT AGREEMENTS (47.2%)
7,570			FNMA#787 Liquidity Fund	8.00	12/01/2014	(C)	8.00	7,570
4,191			FNMA#786 Revenue Fund	5.00	12/01/2014	(C)	5.00	4,191
11,761			Total Investment Agreements					11,761
$	31,366	(B)	Total Investments (100.0%)					$	24,905

(A) Represents the rate of return based on the contributed cost and the amortization to maturity.

(B) The tax basis in the Loans is approximately $31,366

(C) Terminate at the earlier of December 1, 2014 or the date on which the Bonds are paid-in-full (Note 2)

The accompanying notes are an integral part of this schedule.

25

ITEM 2.  CODE OF ETHICS

Not applicable to the registrant.

ITEM 3.  AUDIT COMMITTEE FINANCIAL EXPERT

Not applicable to the registrant.

ITEM 4.  PRINCIPAL ACCOUNTANT FEES AND SERVICES

(a) Audit Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2008 - $208,000

Fiscal year ended 2007 - $199,000

(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2008 - $0

Fiscal year ended 2007 - $0

(c) Tax Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2008 - $0

Fiscal year ended 2007 - $0

(d) All Other Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2008 - $102,400

· $81,000 in connection with Accountants’ Report on Applying Agreed-Upon Procedures to comply with the requirements of section 4.8 of the Trust’s Indenture.

· $15,000 in connection with Accountants’ Report on Applying Agreed Upon Procedure relating to the Trust’s Servicing Agreement.

· $6,400 out of pocket expenses.

Fiscal year ended 2007 - $98,000

· $78,000 in connection with Accountants’ Report on Applying Agreed-Upon Procedures to comply with the requirements of section 4.8 of the Trust’s Indenture.

· $15,000 in connection with Accountants’ Report on Applying Agreed Upon Procedure relating to the Trust’s Servicing Agreement.

· $5,000 out of pocket expenses.

(e)

(1) Audit Committee Policies regarding Pre-approval of Services.

Not applicable to the registrant.

(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrants audit committee pursuant to paragraph  (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:

Not applicable to the registrant.

(f) Not applicable to the registrant.

(g) Not applicable to the registrant.

(h) Not applicable to the registrant.

ITEM 5.  AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable to the registrant.

ITEM 6.  SCHEDULE OF INVESTMENTS

Schedule is included as part of the report to shareholders filed under Item 1.

ITEM 7.  DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable to the registrant.

ITEM 8.  PORTFOLIO MANAGER OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable to the registrant.

ITEM 9.  PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable to the registrant.

ITEM 10.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not applicable to the registrant.

ITEM 11.  CONTROLS AND PROCEDURES

(a) Not applicable to the registrant.

(b) Not applicable to the registrant.

ITEM 12.  EXHIBITS

The following exhibits are attached to this Form N-CSR:

(a)

(1) Code of ethics or amendments: not applicable to the registrant.

(2) Certification by the registrant’s Owner Trustee, as required by Rule 30a-2(a) under the Investment Company Act of 1940, is attached.

(3) Annual Compliance Statement of the Servicer, Capmark Finance Inc., is attached.

(4) Report on Compliance with minimum Master Servicing Standards is attached.

(5) Capmark reports pursuant to section 1301, 1302, 1303, 1304, 1306 and 1307 of the Servicer Agreement.

(b) Certification by the registrant’s Owner Trustee, as required by Rule 30a-2(b) under the Investment Company Act of 1940, is attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)		College and University Facility Loan Trust One
By (Signature and Title)			/s/ Brian True, Vice President
Date	August 10, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)		/s/ Brian True, Vice President
Date	August 10, 2009