UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED APRIL 30, 1998
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OR
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from ______ to _________ .
Commission File Number: 0-18076
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
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(Exact name of registrant as specified in its charter)
Delaware 04-3038480
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
265 Franklin Street, Boston, Massachusetts 02110
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 439-8118
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Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities 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 |_|
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
BALANCE SHEETS
April 30, 1998 and July 31, 1997 (Unaudited)
(In thousands)
ASSETS
April 30 July 31
-------- -------
Investments in Debt Securities (at market value):
Mortgage-Backed Securities available for sale $ 4,692 $ 5,379
Participating Insured Mortgage Loans available
for sale 18,420 18,586
-------- --------
23,112 23,965
Cash and cash equivalents 1,224 1,310
Interest receivable 159 165
Deferred expenses, net 399 531
-------- --------
$ 24,894 $ 25,971
======== ========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable - affiliates $ 28 $ 29
Accounts payable and accrued expenses 40 39
Partners' capital 24,826 25,903
-------- --------
$ 24,894 $ 25,971
======== ========
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
For the nine months ended April 30, 1998 and 1997 (Unaudited)
(In thousands)
Corporate
Limited
General Partner and
Partner Unitholders
------- -----------
Balance at July 31, 1996 $ 1 $ 29,161
Net unrealized holding losses on debt securities - (81)
Cash distributions (14) (4,652)
Net income 13 1,279
------- --------
Balance at April 30, 1997 $ - $ 25,707
======= ========
Balance at July 31, 1997 $ (2) $ 25,905
Net unrealized holding losses on debt securities - (77)
Cash distributions (12) (2,014)
Net income 10 1,016
------- --------
Balance at April 30, 1998 $ (4) $ 24,830
======= ========
See accompanying notes.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
STATEMENTS OF INCOME
For the three and nine months ended April 30, 1998 and 1997 (Unaudited)
(In thousands, except per Unit data)
Three Months Ended Nine Months Ended
April 30, April 30,
------------------ ------------------
1998 1997 1998 1997
---- ---- ---- ----
Revenues:
Interest income - Debt Securities $ 465 $ 497 $1,410 $1,506
Interest income - Money Market 17 31 58 131
------ ------ ------ ------
482 528 1,468 1,637
Expenses:
Management fees 50 53 152 161
General and administrative 46 36 158 121
Amortization expense 43 21 132 63
------ ------ ------ ------
139 110 442 345
------ ------ ------ ------
Net income $ 343 $ 418 $1,026 $1,292
======= ======= ====== ======
Net income per Unit of Depositary
Receipt $ 0.61 $ 0.75 $ 1.84 $ 2.32
====== ====== ====== ======
Cash distributions per Unit of
Depositary Receipt $ 1.88 $ 5.94 $ 3.65 $ 8.43
====== ====== ====== ======
The above net income and cash distributions per Unit of Depositary Receipt
are based upon the 551,604 Units outstanding for each period.
See accompanying notes.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended April 30, 1998 and 1997
Increase (Decrease) in Cash and Cash Equivalents (Unaudited)
(In thousands)
1998 1997
---- ----
Cash flows from operating activities:
Net income $ 1,026 $ 1,292
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization expense 132 63
Amortization of discount/premium on debt
securities 46 13
Changes in assets and liabilities:
Interest receivable 6 4
Accounts payable - affiliates (1) (1)
Accounts payable and accrued expenses 1 (16)
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Total adjustments 184 63
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Net cash provided by operating activities 1,210 1,355
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Cash flows from investing activities:
Principal collections on Mortgage-Backed
Securities 668 678
Principal collections on Participating Insured
Mortgage Loans 62 57
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Net cash provided by investing activities 730 735
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Cash flows from financing activities:
Distributions to Unitholders and partners (2,026) (4,666)
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Net decrease in cash and cash equivalents (86) (2,576)
Cash and cash equivalents, beginning of period 1,310 3,637
--------- ---------
Cash and cash equivalents, end of period $ 1,224 $ 1,061
========= =========
See accompanying notes.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
Notes to Financial Statements
(Unaudited)
1. General
------
The accompanying financial statements, footnotes and discussion should be
read in conjunction with the financial statements and footnotes contained in the
Partnership's Annual Report for the year ended July 31, 1997. In the opinion of
management, the accompanying financial statements, which have not been audited,
reflect all adjustments necessary to present fairly the results for the interim
period. All of the accounting adjustments reflected in the accompanying interim
financial statements are of a normal recurring nature.
The accompanying financial statements have been prepared on the accrual
basis of accounting in accordance with generally accepted accounting principles
which requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent assets
and liabilities as of April 30, 1998 and July 31, 1997 and revenues and expenses
for each of the three- and nine-month periods ended April 30, 1998 and 1997.
Actual results could differ from the estimates and assumptions used.
2. Mortgage-Backed Securities
--------------------------
At April 30, 1998 and July 31, 1997, the Partnership held
non-participating mortgage-backed securities ("MBS") backed by single-family or
multi-family mortgage loans issued or originated in connection with the housing
programs of the Government National Mortgage Association ("GNMA"), and
guaranteed by GNMA, as follows (in thousands):
April 30, 1998 July 31, 1997
---------------------------- -----------------------------
Estimated Estimated
Market Face Amortized Market Face Amortized
Description Value Value Cost Value Value Cost
----------- ----- ----- --------- ----- ----- ---------
9.5% GNMA Pool $ 1,558 $ 1,440 $ 1,430 $ 1,799 $ 1,664 $ 1,652
9.0% GNMA Pool 193 189 196 268 260 270
8.0% GNMA Pool 2,679 2,570 2,667 3,016 2,907 3,037
7.5% GNMA Pool 262 254 253 296 290 287
------- ------- ------- ------- ------- -------
$ 4,692 $ 4,453 $ 4,546 $ 5,379 $ 5,121 $ 5,246
======= ======= ======= ======= ======= =======
The Partnership's investments in MBS are carried at fair value as of April
30, 1998 and July 31, 1997. Investments in MBS are valued based on quoted market
prices. The amortized cost of the MBS represents the face value of the
securities net of unamortized premium or discount. Beginning in fiscal 1998, the
premiums and discounts are being amortized on a straight-line basis over the
expected remaining holding periods of the investments, of three years. Prior to
fiscal 1998, the premium and discounts were being amortized over an original
estimated holding period of fifteen years. Investments in non-participating MBS
were limited to no more than 30% of the original net offering proceeds per the
terms of the Partnership's offering prospectus.
The 9.5% MBS, which were purchased at a discount on December 14, 1988,
carry a coupon interest rate of 9.5% per annum and include loans with scheduled
maturities between June 2009 and December 2009. The 9.0% MBS, which were
purchased at a premium on November 16, 1989, carry a coupon interest rate of
9.0% per annum and include loans with scheduled maturities between June 2001 and
September 2002. The 8.0% MBS, which were purchased at a premium on July 30,
1992, carry a coupon interest rate of 8.0% per annum and include loans with
scheduled maturities in June 2022. The 7.5% MBS, which were purchased at a
discount on October 30, 1992, carry a coupon interest rate of 7.50% per annum
and include loans with scheduled maturities in March 2022. The loans included in
these GNMA pool programs may be prepaid, without penalty, at any time.
3. Investments in Participating Insured Mortgage Loans
---------------------------------------------------
Participating Insured Mortgage Loans secured by GNMA securities
outstanding at April 30, 1998 and July 31, 1997 are comprised of the following
(in thousands):
April 30, 1998 July 31, 1997
---------------------- -----------------------
GNMA Estimated Estimated
Certificate Interest Market Amortized Market Amortized
Number Property Rate Value Cost Value Cost
------ -------- ---- ----- --------- ----- ---------
279985 Quarter Mill 8.50% $ 7,409 $ 7,141 $ 7,417 $ 7,166
279119 Emerald Cove 8.75% 11,011 10,594 11,169 10,645
-------- -------- -------- --------
$ 18,420 $ 17,735 $ 18,586 $ 17,811
======== ======== ======== ========
The Partnership's investments in Participating Insured Mortgage Loans are
carried at fair value as of April 30, 1998 and July 31, 1997. Investments in
Participating Insured Mortgage Loans, for which quoted market prices are not
available, are valued by an independent pricing service which determines the
valuations based on a comparison of recent market trades of securities with
similar characteristics. Because of the inherent uncertainty of valuations,
estimated values, as reflected herein, may differ from the values that would
have been used had a ready market for the securities existed. Descriptions of
the properties financed by the Partnership's loans and the loan agreements
themselves are summarized below:
Quarter Mill Apartments
-----------------------
The Partnership acquired a Participating Insured Mortgage Loan with
respect to a 266-unit apartment complex known as Quarter Mill Apartments located
in Richmond, Virginia (the "Virginia Project"). Construction of the Virginia
Project was completed in November of 1990. Initial closing of this Participating
Insured Mortgage loan took place on August 2, 1989. The project owner is Amurcon
Corporation. The Base Component of this Participating Insured Mortgage Loan is
coinsured by FHA and represented by GNMA Securities with an initial face value
of $7,316,600, which GNMA Securities bore interest at the rate of 10.25% during
construction of the Virginia Project and 8.50% thereafter. Effective May 1,
1991, the construction loan was converted to a permanent loan with a principal
balance of $6,525,000. On June 21, 1991 an additional $791,600 was funded,
completing the Partnership's investment of $7,316,600. Monthly payments of
principal and interest totalling approximately $53,533 are due through maturity,
on October 15, 2031. Scheduled principal repayments of $175,985 have been
received through April 30, 1998.
Emerald Cove Apartments
-----------------------
The Partnership acquired a Participating Insured Mortgage Loan with
respect to a 276-unit apartment complex known as Emerald Cove Apartments in
Charlotte, North Carolina (the "North Carolina Project"). Initial closing of
this Participating Insured Mortgage Loan took place on October 16, 1989. The
project owners are Ronald Curry and Ralph Abercia. The Base Component of this
Participating Insured Mortgage Loan is coinsured by FHA and represented by GNMA
Securities with an initial face value of $10,783,900 at closing, which GNMA
Securities bore interest at the rate of 10.25% during construction of the North
Carolina Project and 8.75% thereafter. During fiscal 1992, the Partnership
funded its remaining commitment on the investment of approximately $1,184,000
and, effective May 1, 1992, the investment was converted to a permanent loan
with a principal balance of $10,776,500. The Partnership paid a premium of
$107,840 to the GNMA issuer to obtain the original loan commitment due to the
fact that the permanent loan interest rate was higher than comparable market
rates at the time of the initial closing. Prior to fiscal 1998, the premium had
been amortized on the straight-line method over a 15-year amortization period.
Beginning in fiscal 1998, the amortization rate has been increased to reflect a
reduction in the expected remaining holding period of the investment. Monthly
payments of principal and interest totalling approximately $81,114 are due
through maturity, on August 15, 2031. Scheduled principal repayments of $232,748
have been received through April 30, 1998.
4. Related Party Transactions
--------------------------
Management fees earned by the General Partner and its affiliates for
services rendered in managing the business of the Partnership aggregated
$152,000 and $161,000 for the nine months ended April 30, 1998 and 1997,
respectively. Of these amounts, $25,000 and $29,000, respectively, represent
additional asset management fees paid to PWPI which are based on the
Partnership's cash distributions of operating income, as discussed further in
the Partnership's Annual Report. Accounts payable - affiliates at April 30, 1998
and July 31, 1997 consists of $28,000 and $29,000, respectively, of management
fees payable to the General Partner and its affiliates.
Included in general and administrative expenses for the nine months ended
April 30, 1998 and 1997 is $70,000 and $72,000, respectively, representing
reimbursements to an affiliate of the General Partner for providing certain
financial, accounting and investor communication services to the Partnership.
Also included in general and administrative expenses for both of the
nine-month periods ended April 30, 1998 and 1997 is $4,000, representing fees
earned by an affiliate, Mitchell Hutchins Institutional Investors, Inc., for
managing the Partnership's cash assets.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Information Relating to Forward-Looking Statements
- --------------------------------------------------
The following discussion of financial condition includes forward-looking
statements which reflect management's current views with respect to future
events and financial performance of the Partnership. These forward-looking
statements are subject to certain risks and uncertainties, including those
identified in Item 7 of the Partnership's Annual Report on Form 10-K for the
year ended July 31, 1997 under the heading "Certain Factors Affecting Future
Operating Results", which could cause actual results to differ materially from
historical results or those anticipated. The words "believe", "expect",
"anticipate," and similar expressions identify forward-looking statements.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which were made based on facts and conditions as they existed as of
the date of this report. The Partnership undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Liquidity and Capital Resources
- -------------------------------
The Partnership is currently analyzing potential disposition strategies
for its remaining investments. As part of these efforts, the Partnership is
evaluating the current economic benefits it would receive if the owners of the
Emerald Cove Apartments and the Quarter Mill Apartments were to prepay their
participating loans within the next 2 to 3 years. As discussed further below,
the owner of the Emerald Cove Apartments has recently informed the Partnership
that the property is being actively marketed for sale. The current strength of
the national real estate market for the sale or refinancing of multi-family
apartment properties has increased the likelihood of one or both of the
Partnership's participating loans being prepaid in the near term. While the
Partnership cannot require either of the owners to prepay their loans, the
Partnership could possibly sell one or both of the participating loans and some
or all of the non-participating mortgage-backed securities pools. In this
regard, a key consideration is the strength of the buying markets for these
types of investments. Also, as part of any sale of its two participating
mortgage loans, the Partnership would expect to receive fair value for its
entitlement to participate in potential cash flow increases and capital
appreciation from each property as well as for its entitlement to receive
prepayment penalties if either of the participating loans were prepaid by the
property owners. The prepayment penalties would apply if the participating loans
were prepaid before June 2001 for its Quarter Mill investment and May 2002 for
its Emerald Cove investment. As discussed further below, as of the present date
the amounts of the prepayment penalties which could be received on the two
remaining participating loans range from 6% to 2% of the outstanding loan
balances depending on the date of the prepayment.
The Partnership's non-participating MBS have coupon interest rates ranging
from 7.5% to 9.5%. Based on current market interest rate levels, the aggregate
market value of these securities at the present time is above both the aggregate
face value and amortized cost, which includes any unamortized discounts or
premiums. As of April 30, 1998, the Partnership's two remaining participating
loans, which carry coupon interest rates of 8.5% and 8.75%, had estimated market
values which were higher than their face values due to a variety of factors,
including the participation features. Increases in market interest rates and/or
deterioration in general real estate market conditions in the near term could
cause the aggregate market value of the participating loans and the portfolio of
non-participating MBS investments to fall below face value and/or amortized
cost. In the event that such circumstances were to occur, management is not
prohibited from selling any security at a loss and may do so if it is believed
that such a sale would be in the best interests of the Partnership.
As previously reported, generally low market interest rates have prompted
a high level of refinancing activity over the past several years, resulting in
significant prepayments on the Partnership's non-participating mortgage-backed
securities. Such prepayments had the effect of reducing the Partnership's
investment income and cash flows from operating activities and increasing the
outstanding balance of the Partnership's cash reserves. Since it was deemed
unlikely that there would be a default on either of the Partnership's two
remaining multi-family participating loans, and since the current rates of
return available on non-participating mortgage-backed security investments did
not warrant reinvestment by the Partnership, management concluded during fiscal
1997 that it would be in the best interests of the Unitholders to return the
portion of the Partnership's cash reserves which exceeded expected future
requirements. Consequently, the Partnership distributed $2,600,000 of its excess
reserves, or $47.13 per original $1,000 investment, in a special distribution
made on March 14, 1997. Regular quarterly distributions are comprised of
investment income and return of capital which results from the scheduled
amortization of mortgage principal on all of the debt securities as well as
principal prepayments from the non-participating GNMA mortgage-backed
securities. Such principal prepayments are unpredictable and, as noted above,
have been high during recent years but declined during fiscal 1997, resulting in
a reduction in cash flows from investing activities. Based on this decline in
the rate of principal prepayments and the expectation that this decline would
continue in the future, the Partnership had reduced the regular quarterly
distribution rate effective for the payment made on June 13, 1997 for the third
quarter of fiscal 1997. The distribution rate declined from 8.25% per annum to
6.5%. During fiscal 1998, however, actual principal prepayment levels have been
higher than projected. As a result, the Partnership made a special capital
distribution of excess cash totalling approximately $552,000, or $10.00 per
original $1,000 investment, to the Limited Partners on March 13, 1998,
concurrent with the regular quarterly distribution for the period ended January
31, 1998. Distributions are expected to continue to be made at a rate of 6.5%
per annum on remaining invested capital for the balance of calendar year 1998,
and the Partnership's cash reserve levels will be reviewed again in early 1999
to determine whether another special capital distribution could be made in March
1999.
The Partnership's two remaining Participating Insured Mortgage Loans are
secured by the Emerald Cove and Quarter Mill apartment complexes. The occupancy
level at Emerald Cove averaged 95% for the quarter ended April 30, 1998,
compared to 96% for the second quarter of fiscal 1998 and 91% for the same
period in the prior year. As discussed further in the Annual Report, due to the
increased competition during fiscal 1997 in the overall Charlotte, North
Carolina market from new rental units, the use of rental concessions had been
necessary at Emerald Cove to maintain the property's occupancy levels. However,
because the property's occupancy has increased during fiscal 1998, the
property's leasing team has discontinued offering rental concessions on renewal
leases. The property's rental rates and occupancy levels remain comparable to
those of directly competitive properties in the local market. Prepayment of the
Partnership's Emerald Cove Participating Insured Mortgage Loan was restricted
through March 1997 and then requires a prepayment penalty which declines
ratably, from 5% to 2%, over a period of four years. During the quarter ended
April 30, 1998 the Emerald Cove owner informed the Partnership that the property
was being actively marketed for sale and asked that the Partnership specify the
terms upon which it would accept prepayment of the participating loan.
Subsequent to the quarter-end, the Partnership formally responded to the owner
that it would accept prepayment in accordance with the existing terms of the
loan. Although the owner of Emerald Cove has initiated discussions of prepayment
on several occasions over the past several years, no viable prepayment
transaction has materialized from such discussions. As a result, there are no
assurances that these most recent prepayment discussions will result in the
successful consummation of a sale transaction.
The Quarter Mill Apartments continued its strong operating performance
during the third quarter of fiscal 1998, with an average occupancy level of 98%,
unchanged from the second quarter of 1998 and the same period in the prior year.
Because the Quarter Mill Apartments participates in the Low Income Housing Tax
Credit Program, its rental rates are based on the metropolitan area's median
family income, rather than on market rent levels. Average rental rates on new
leases being signed are up 3.75% from one year ago. A strong local rental
market, combined with below market rental rates at Quarter Mill, has resulted in
consistently high occupancy levels at the property. Property operations continue
to generate small amounts of excess cash flow, a portion of which is payable to
the Partnership as Contingent Interest. During fiscal 1998, 1997 and 1996, the
Partnership received approximately $54,000, $49,000 and $46,000, respectively,
representing its 30% share of the surplus cash, as defined. The Quarter Mill
Participating Insured Mortgage Loan became open to prepayment in February 1996
with a specified prepayment penalty which declines ratably, from 10% to 2%, over
a period of five years. To date, no formal proposals to prepay the loan have
been received from the owner of Quarter Mill.
At April 30, 1998, the Partnership had cash and cash equivalents of
approximately $1,224,000. Such amounts will be utilized for distributions to the
Unitholders, as discussed further above, and for the working capital
requirements of the Partnership. The source of future liquidity and
distributions to the Unitholders is expected to be primarily through interest
income and principal repayments from the Partnership's mortgage securities,
money-market interest income from invested cash reserves, and to a lesser extent
from Contingent Interest from Participating Insured Mortgage Loans and Net
Project Residuals from the sale or refinancing of the properties securing such
investments.
Results of Operations
Three Months Ended April 30, 1998
- ---------------------------------
The Partnership reported net income of $343,000 for the three months ended
April 30, 1998, as compared to net income of $418,000 for the same period in the
prior year. This decline in net income for the third quarter of fiscal 1998
resulted from a decline in total revenues of $46,000 and an increase in total
expenses of $29,000. The decline in revenues can be attributed to a $32,000
decrease in interest income from debt securities and a $14,000 reduction in
money market interest income. The decrease in interest income from debt
securities resulted partly from a decline in the average outstanding principal
balances of Participating Insured Mortgage Loans and non-participating MBS due
to scheduled principal amortization on all of the debt securities and
prepayments on the MBS. In addition, an acceleration in the amortization rate of
the net purchase premiums on the Partnership's debt securities contributed to
the reduction in interest income for the current three-month period. The decline
in money market interest income resulted from a decline in the average
outstanding balance of the Partnership's invested cash reserves due to the
special distribution of excess cash reserves in the amount of $552,000 made on
March 13, 1998, as discussed further above. The increase in total expenses is
attributable to an increase in general and administrative expenses and an
increase in amortization expense. General and administrative expenses increased
largely due to the timing of certain recurring professional services as compared
to the prior year. Amortization expense increased as a result of an acceleration
in the amortization rate of the Partnership's deferred expenses. Beginning in
fiscal 1998, the Partnership reduced the expected holding period of its
remaining investments, which resulted in higher non-cash amortization charges
for the current three-month period.
Nine Months Ended April 30, 1998
- --------------------------------
Net income for the nine months ended April 30, 1998 decreased by $266,000,
when compared to the same period in the prior year, due to a $169,000 decline in
total revenues and a $97,000 increase in operating expenses. The decrease in
revenues can be attributed to a $96,000 decline in interest income from debt
securities and a $73,000 reduction in money market interest income. The decline
in interest income from debt securities resulted partly from a reduction in the
average outstanding principal balances of such investments due to scheduled
principal amortization on all of the debt securities and prepayments on the MBS.
In addition, an acceleration in the amortization rate of the net purchase
premiums on the Partnership's debt securities contributed to the reduction in
interest income for the current nine-month period. The decline in money market
interest income for the current nine-month period is attributable to a decline
in the average outstanding balance of the Partnership's invested cash reserves
due to the special distributions of excess cash reserves in the amounts of
$2,600,000 and $552,000 made on March 14, 1997 and March 13, 1998, respectively,
as discussed further above. The increase in total expenses is attributable to an
increase in amortization expense and an increase in general and administrative
expenses. Amortization expense increased by $69,000 as a result of an
acceleration in the amortization rate of the Partnership's deferred expenses in
fiscal 1998, as discussed further above. General and administrative expenses
increased by $37,000 primarily due to increases in the costs of certain required
professional services for the current nine-month period.
PART II
Other Information
Item 1. through 5. NONE
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits: NONE
(b) Reports on Form 8-K:
No reports on Form 8-K have been filed by the registrant during the quarter
for which this report is filed.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Partnership has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
By: FIRST INSURED MORTGAGE PARTNERS, INC.
-------------------------------------
Managing General Partner
Date: June 9, 1998 By: /s/ Walter V. Arnold
--------------------
Walter V. Arnold
Senior Vice President and
Chief Financial Officer