<ARTICLE> BD <CIK> 0000897998 <NAME> HL FUNDING CO. INC. <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> DEC-31-1996 <CASH> 351,564 <RECEIVABLES> 393,697 <SECURITIES-RESALE> 0 <SECURITIES-BORROWED> 0 <INSTRUMENTS-OWNED> 0 <PP&E> 0 <TOTAL-ASSETS> 745,261 <SHORT-TERM> 0 <PAYABLES> 548,448 <REPOS-SOLD> 0 <SECURITIES-LOANED> 0 <INSTRUMENTS-SOLD> 0 <LONG-TERM> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 100 <OTHER-SE> 196,713 <TOTAL-LIABILITY-AND-EQUITY> 745,261 <TRADING-REVENUE> 0 <INTEREST-DIVIDENDS> 10,171 <COMMISSIONS> 0 <INVESTMENT-BANKING-REVENUES> 0 <FEE-REVENUE> 22,896 <INTEREST-EXPENSE> 16,426 <COMPENSATION> 229,928 <F1> <INCOME-PRETAX> (213,287) <INCOME-PRE-EXTRAORDINARY> (213,287) <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (138,637) <F2> <EPS-PRIMARY> (138,637) <EPS-DILUTED> 0 <FN> <F1> $229,928 contains $15,840 legal and state fees and $180,900 for other operating expenses. <F2> (138,637) is net income after a tax benefit of $74,650.