STATE OF CONNECTICUT Comprehensive Annual Financial Report - Notes to the Financial Statements - Note 5

Loans receivable for the primary government and its component units, as of June 30, 1997, consisted of the following:

		Primary Government
	Special Revenue	Enterprise	Trust and Agency	Higher Education	Total	Component Units
Mortgage	$ -	$ -	$ -	$ -	$ -	$2,469,724
Industrial	-	-	-	-	-	160,250
Housing	209,294	93,260	-	-	302,554	-
Clean Water	-	-	382,921	-	382,921	-
Student	-	-	-	23,615	23,615	-
Other	178,532	-	71	6,775	185,378	72,446
Less:
Allowance for Losses	-	2,425	-	2,388	4,813	2,500

Loans Receivable Net	$387,826	$90,835	$382,992	$28,002	$889,655	$2,699,920

The mortgage loan program consists of home, multi-family and construction loan mortgages made by the Connecticut Housing Finance Authority. Most loans are insured by the Federal Housing Administration or by private mortgage insurance companies. In addition, home mortgage loans are guaranteed up to certain amounts by the Veterans Administration. Permanent loans earn interest at rates ranging from 0% to 13.5% and have initial terms of 10 to 40 years. Construction loans earn interest at rates ranging from 0% to 10.88%. Upon completion of each development, the related permanent mortgage loan, which will generally be provided by the Authority, will be payable over 30 to 40 years at annual interest rates ranging from 0% to 10.38%.

The Clean Water fund loans funds to qualified municipalities for planning, design, and construction of water quality projects. These loans are payable over a 20 year period at an annual interest rate of 2% and are secured by the full faith and credit or revenue pledges of the municipalities, or both.

The industrial loan program consists of loans made by the Connecticut Development Authority to finance the purchase of land, buildings, and equipment by qualified applicants and to finance other economic development programs of the Authority. These loans and installment contracts receivable are collateralized by assets acquired from the proceeds of the related loans. These receivables have originating terms of 1 to 25 years and earn interest at rates ranging from 4% to 12.00%. As of June 30, l997, loans in the amount of $59,828 (including loans of $9,586 made by other lending institutions) were insured by an insurance fund created by the Authority and by the faith and credit pledged by the State. This insurance fund had net assets of $7,966 at year end. Thus, the State is contingently liable in the event of any defaulted loans that could not be paid out of the assets of the insurance fund.