<PAGE>
<PAGE>1



                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549

                                    FORM 10-Q

             (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                    For The Quarter Ended September 30, 1997

                                       OR

            ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                        For The Transition Period From _________ to _________

                        Commission File Number 333-11243

                             CAPITA PREFERRED TRUST

          A DELAWARE                          I.R.S. EMPLOYER IDENTIFICATION
         BUSINESS TRUST                              No. 22-3467159

                          c/o AT&T Capital Corporation
               44 Whippany Road, Morristown, New Jersey 07962-1983

                          Telephone Number 201-397-3000

                               ------------------


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.......






<PAGE>
<PAGE>2


                         PART I - FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS.

                             CAPITA PREFERRED TRUST
                              STATEMENTS OF INCOME
                     FOR THE PERIODS ENDED SEPTEMBER 30,1997
                             (Dollars in Thousands)
                                   (Unaudited)

                                                 For the Three    For the Nine
                                                 Months Ended     Months Ended
                                                 -------------    -------------


REVENUES - Distributions on
 partnership preferred securities                   $4,670           $14,010
                                                     -----            ------

Net Income                                          $4,670           $14,010
                                                     =====           =======


The accompanying notes are an integral part of these Financial Statements.




<PAGE>
<PAGE>3


                             CAPITA PREFERRED TRUST
                                 BALANCE SHEETS
                             (Dollars in Thousands)

<TABLE>
<CAPTION>
                                                   September 30,
                                                       1997             December 31,
                                                    (unaudited)             1996
<S>                                                <C>                  <C>
ASSET - Limited partnership interest
    in Partnership                                 $206,186             $206,186
                                                   ========             ========
SHAREOWNERS' EQUITY:
   Trust Preferred Securities -
       authorized, issued and outstanding
       8,000,000 shares, $25 liquidation
       value                                       $200,000             $200,000
   Trust Common Securities -
      $25 liquidation value                           6,186                6,186
                                                   --------             --------
Total Shareowners' Equity                          $206,186             $206,186
                                                   ========             ========

</TABLE>


The accompanying notes are an integral part of these Financial Statements.




<PAGE>
<PAGE>4


                             CAPITA PREFERRED TRUST
                             STATEMENT OF CASH FLOWS
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997
                             (Dollars in Thousands)
                                   (Unaudited)

CASH FLOW FROM OPERATING ACTIVITIES:

Net Income                                         $14,010
                                                   -------
Net Cash Provided by Operating Activities           14,010
                                                   -------
CASH FLOW USED FOR FINANCING ACTIVITIES:

Payment of distributions                           (14,010)
                                                  --------
Net Cash used for Financing Activities             (14,010)
                                                  ---------
Net Change in Cash and Cash Equivalents                  0
Cash and Cash Equivalents at Beginning
 of Period                                               0
                                                  ---------
Cash and Cash Equivalents at End
 of Period                                        $      0
                                                  =========



The accompanying notes are an integral part of these Financial Statements.



<PAGE>
<PAGE>5


                             CAPITA PREFERRED TRUST
                          NOTES TO FINANCIAL STATEMENTS
                             (Dollars in Thousands)
                                   (Unaudited)

1.  Basis of Presentation

     The accompanying unaudited financial statements have been prepared by
Capita Preferred Trust (the "Trust") pursuant to the rules and regulations of
the Securities and Exchange Commission and, in the opinion of management,
reflect all adjustments, consisting of normal recurring adjustments, necessary
for a fair presentation of the results of operations, financial position and
cash flows for each period shown. The results for interim periods are not
necessarily indicative of financial results for the full year. These unaudited
financial statements should be read in conjunction with the audited financial
statements and notes thereto included in the Trust's Annual Report on Form 10-K
for the year ended December 31, 1996.

2.      Financial information of the Partnership

Summarized financial information for Capita Preferred Funding L.P. 
(the "Partnership"), accounted for by the equity method is as follows:

  At or for the nine months ended
     September 30, 1997 (Unaudited)             At December 31, 1996
-------------------------------------       ------------------------

Current assets               $  2,435                     $  2,426
Noncurrent assets             240,146                      240,146
Partners' Capital            $242,581                     $242,572

Revenues                     $ 16,079
Net Income                   $ 16,079







<PAGE>
<PAGE>6


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS.  (Dollars in Thousands)

Results of Operations and Changes in Cash Flows

        On September 30, 1997, holders of Capita Preferred Trust (the "Trust")
securities were paid the required quarterly cash distribution of $4,670 (annual
fixed rate of 9.06%). On that same date, the Trust also received quarterly
distributions (annual fixed rate of 9.06%) from Capita Preferred Funding L.P.
(the "Partnership") of $4,670 relating to the Trust's $206,186 limited
partnership interest in the Partnership.

        For the nine months ended September 30,1997, the Trust paid cash
distributions of $14,010 and received cash distributions of $14,010 from the
Partnership.




<PAGE>
<PAGE>7


                             CAPITA PREFERRED TRUST
                           PART II - OTHER INFORMATION

Item 6. Exhibits and reports on Form 8-K.

            a)  Exhibits:
                   Exhibit Number

                     27      Financial Data Schedule

            b)   Current Reports on Form 8-K:

                 None






<PAGE>
<PAGE>8


                             SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                                  CAPITA PREFERRED TRUST

                                                  GLENN A. VOTEK
                                                  --------------------------
                                              By: Glenn A. Votek
                                                  Regular Trustee

 November 5, 1997



 
<PAGE>
<PAGE>9


                                  EXHIBIT INDEX

 EXHIBITS

  Exhibit
   Number             Description

   27.         Financial Data Schedule




<PAGE>