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# U.S. Securities and Exchange Commission

# Washington, D.C. 20549

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# FORM 10-QSB

# [X] QUARTERLY REPORT UNDER SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934

For the quarterly period ended September 30, 2000

OR

# [  ] TRANSITION REPORT UNDER SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE

# ACT OF 1934

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Commission File No. 0-8117

# CHURCH LOANS & INVESTMENTS TRUST

State of Organization - Texas

Internal Revenue Service  Employer
Identification No. 75-6030254

5305 I-40 West

Amarillo, Texas 79106

Registrants telephone number:
806-358-3666

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Check whether the issuer (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act during the past 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 ___

As of September 30, 2000, 7,000,806 shares of the
Registrants shares of beneficial interest were outstanding.

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# CHURCH LOANS & INVESTMENTS TRUST
INDEX

|Part I.    |                                                                                                            | Page
|---------- | ---------------------------------------------------------------------------------------------------------- | ----
|Item 1:    | Financial Information:                                                                                     |     
|           | Condensed Balance Sheets at September 30, 2000 and March 31, 2000                                          | 1   
|           | Condensed Statements of Income for the three-month and six-month periods ended September 30, 2000 and 1999 | 2   
|           | Condensed Statements of Cash Flows for the six-month periods ended September 30, 2000 and 1999             | 3   
|           | Notes to Condensed Financial Statements                                                                    | 4   
|Item 2:    | Management's Discussion and Analysis or Plan of Operation                                                  | 6   
|Part II.   | Other Information                                                                                          | 7   
|Signatures |                                                                                                            | 8   

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# CHURCH LOANS & INVESTMENTS TRUST

(A Real Estate Investment Trust)
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Balance Sheets (Unaudited)
September 30, 2000 and March 31, 2000

`ASSETS
                                                                             September 30, 2000      March 31, 2000
                                                                             ------------------      --------------

CASH AND CASH RECEIVABLES                                                        $     161,563       $      387,087
RECEIVABLES
    Mortgage loans and church bonds - performing                                    22,420,950           22,141,873
    Interim construction loans - performing                                         13,082,809            8,827,383
    Nonperforming mortgage loans, church bonds and
      interim construction loans                                                     5,625,910            5,967,657
    Less: Allowance for possible credit losses                                      (1,478,172)          (1,388,172)
                                                                             ------------------      --------------
                                                                                    39,651,497           35,548,741
    Accrued interest receivable                                                        346,797              258,593
    Notes receivable                                                                   952,434              599,969
                                                                             ------------------      --------------
                  Total receivables                                                 40,950,728           36,407,303
PROPERTY AND EQUIPMENT, net                                                            158,439              166,275
REAL ESTATE ACQUIRED THROUGH FORECLOSURE                                                    -               968,349
OTHER ASSETS                                                                            21,786               15,926
                                                                             ------------------      --------------
TOTAL ASSETS                                                                     $  41,292,516       $   37,944,940
                                                                             ==================      ==============

                                                    LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES
    Notes payable and line of credit:
      Related party                                                              $   2,815,945       $    2,820,128
      Other                                                                         15,437,721           12,043,064
                                                                             ------------------      --------------
                                                                                    18,253,666           14,863,192
                                                                             ------------------      --------------

    Secured savings certificates                                                           -                726,000
    Accrued interest payable                                                           138,053              108,320
    Other                                                                              705,495              660,250
                                                                             ------------------      --------------
                  Total liabilities                                                 19,097,214           16,357,762
                                                                             ------------------      --------------

SHAREHOLDERS' EQUITY
    Shares of beneficial interest, no par value; authorized
      shares unlimited, 7,007,402 shares issued                                     20,623,866           20,623,866
    Undistributed net income                                                         1,587,926              979,802
    Treasury shares, at cost (6,596 shares)                                            (16,490)             (16,490)
                                                                             ------------------      --------------
                  Total shareholders' equity                                        22,195,302           21,587,178
                                                                             ------------------      --------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                       $  41,292,516       $   37,944,940
                                                                             =================-      ==============`

These condensed financial statements should be read
only in  connection  with  the  accompanying  notes to  condensed  financial
statements.
-1-

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# CHURCH LOANS & INVESTMENTS TRUST

(A Real Estate Investment Trust)

Condensed Statements of Income (Unaudited)
Three-month and six-month periods ended September 30, 2000 and 1999

`Three-month periods ended            Six-month periods ended
                                                          September 30,                      September 30,
                                                      2000             1999             2000              1999
                                                      ----             ----             ----              ----
INTEREST INCOME AND FEES
    Interest and fees on mortgage
      loans, church bonds, and
      interim construction loans                  $   1,503,148   $      963,149    $   2,532,547    $    2,576,374
    Interest on temporary
       investments                                       25,202           25,210           41,128            30,558
                                                  -------------   --------------    -------------    ---------------
          Total interest income and fees              1,528,350          988,359        2,573,675         2,606,932
                                                  -------------   --------------    -------------    ---------------
DEBT EXPENSE
    Interest                                            423,903          250,507          751,493           496,036
    Amortization of commissions
       paid to brokers                                   -                 2,770            1,183             7,829
                                                  -------------   --------------    -------------    ---------------
          Total debt expense                            423,903          253,277          752,676           503,865
                                                  -------------   --------------    -------------    ---------------
          Net interest income                         1,104,447          735,082        1,820,999         2,103,067
PROVISION FOR POSSIBLE
    CREDIT  LOSSES                                       45,000           45,000           90,000            90,000
                                                  -------------   --------------    -------------    ---------------
          Net interest income
            less provision for
            possible credit losses                    1,059,447          690,082        1,730,999         2,013,067
OTHER INCOME                                             81,654            2,136          184,934            4,792
OTHER OPERATING EXPENSES
    General and administrative                          145,695          161,941          300,155           320,474
    Board of Trust Managers' fees                        13,054           13,588           27,541            27,891
                                                  -------------   --------------    -------------    ---------------
          Total other operating expenses                158,749          175,529          327,696           348,365
                                                  -------------   --------------    -------------    ---------------
          Income before provision
              for taxes                                 982,352          516,689        1,588,237         1,669,494
                                                  -------------   --------------    -------------    ---------------
PROVISION FOR INCOME TAXES                              -                   -                -                 -
                                                  -------------   --------------    -------------    ---------------
NET INCOME    $                                         982,352    $    516,689     $   1,588,237    $    1,669,494
                                                  =============   ==============    =============    ===============
WEIGHTED AVERAGE NUMBER
    OF SHARES OUTSTANDING                             7,000,806        7,000,806        7,000,806         7,000,806
                                                  =============   ==============    =============    ===============
NET INCOME PER SHARE                                 $ .14             $.07             $.23              $.24
                                                  =============   ==============    =============    ===============
DIVIDENDS PER SHARE                                      -               -               .14               .10
                                                  =============   ==============    =============    ===============`

These condensed financial statements should be read only in connection
with the accompanying notes to condensed financial statements.
-2-

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# CHURCH LOANS & INVESTMENTS TRUST

(A Real Estate Investment Trust)
Condensed Statements of Cash Flows (Unaudited)
Six-month periods ended September 30, 2000 and 1999

`Six-month periods ended September 30,
                                                                                          2000             1999
                                                                                          ----             ----
CASH FLOWS FROM OPERATING ACTIVITIES
     Net income                                                                     $   1,588,237   $     1,669,494
     Adjustments to reconcile net income to net cash
       provided by operating activities:
         Depreciation                                                                       7,836             7,836
         Amortization of debt expense                                                       1,183             7,829
         Amortization of loan discounts                                                   (17,285)          (42,751)
         Provision for possible credit losses                                              90,000            90,000
         Gain on sale of other real estate                                               (180,662)            -
         Changes in:
           Accrued interest receivable                                                    (88,204)         (152,827)
           Accrued interest payable                                                        29,733          (101,610)
           Other liabilities                                                               45,245           (42,147)
           Other, net                                                                     (21,073)          (11,468)
                                                                                    -------------   ----------------
                  Net cash provided by operating activities                             1,455,010         1,424,356
                                                                                    -------------   ----------------
CASH FLOWS FROM INVESTING ACTIVITIES
     Investment in mortgage and interim construction
       loans and church bonds                                                         (17,129,411)       (8,502,090)
     Payments received on mortgage and interim
       construction loans and church bonds                                             12,953,940         9,228,529
     Advances of notes receivable                                                        (601,651)         (266,873)
     Payments received on notes receivable                                                249,186           164,768
     Proceeds from sale of other real estate                                            1,163,041             -
                                                                                    -------------   ----------------
                  Net cash provided (used) by investing activities                     (3,364,895)          624,334
                                                                                    -------------   ----------------
CASH FLOWS FROM FINANCING ACTIVITIES
     Borrowings on notes payable                                                       19,288,028        11,128,606
     Principal payments on:
       Secured savings certificates                                                      (726,000)       (1,344,376)
       Notes payable                                                                  (15,897,554)      (11,148,996)
     Cash dividends paid                                                                 (980,113)         (700,081)
                                                                                    -------------   ----------------
                  Net cash provided (used) by financing activities                      1,684,361        (2,064,847)
                                                                                    -------------   ----------------
                  Decrease in cash and cash equivalents                                  (225,524)          (16,157)
CASH AND CASH EQUIVALENTS AT
     BEGINNING OF PERIOD                                                                  387,087           181,068
                                                                                    -------------   ----------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                          $     161,563   $       164,911
                                                                                    =============   ================
Supplemental disclosure of cash flow information
     Cash paid during the period for interest                                       $     721,760   $       597,646
                                                                                    =============   ================
     Real estate acquired through foreclosure                                       $       -       $       611,292
                                                                                    =============   ================`

These condensed financial statements should be read
only in  connection  with  the  accompanying  notes to  condensed  financial
statements.-3-

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# CHURCH LOANS & INVESTMENTS TRUST

(A Real Estate Investment Trust)
Notes to Condensed Financial Statements (Unaudited)

## NOTE 1 - GENERAL

See Summary of Significant  Accounting  Policies in the Trust's
Annual  Report on Form 10-  KSB405  for a  summary  of the  Trust's  significant
accounting policies.

The  unaudited  condensed  financial  statements included herein
were prepared from the books of the Trust in accordance with generally  accepted
accounting  principles  and  reflect  all  adjustments   (consisting  of  normal
recurring accruals) which are, in the opinion of management, necessary to a fair
statement of the results of operations  and  financial  position for the interim
periods.  Such  financial  statements  generally  conform  to  the  presentation
reflected in the Trust's  Annual  Report to  Shareholders.  The current  interim
period  reported  herein is included in the fiscal year  subject to  independent
audit  at the end of that  year  and is not  necessarily  an  indication  of the
expected results for the fiscal year.

## NOTE 2 - WEIGHTED AVERAGE INTEREST RATES

Weighted average interest rates and net interest rate margins at
September 30, 2000 and 1999, were as follows:

`Mortgage loan and                Total           Net interest
                                            church bond portfolio          indebtedness         rate margin
                                            ---------------------          ------------        ------------
         September 30, 2000                        10.67%                    8.50%                2.17%

         September 30, 1999                         9.86%                    7.31%                2.55%`

## NOTE 3 - CONTRACTUAL MATURITIES

Scheduled principal payments on mortgage loans, church bonds and
interim  loans  and  indebtedness   (including  notes  payable)  outstanding  at
September 30,  2000, for the five twelve-month  periods  subsequent to September
30, 2000, follow:

`Twelve-month period                    Mortgage loans, church bonds
                 ending September 30,                         and interim loans                Indebtedness
                 --------------------                    ----------------------------          ------------
                      2001                                    $    19,158,204                $    18,253,666
                      2002                                          1,476,126                          -
                      2003                                          1,477,418                          -
                      2004                                          1,402,008                          -
                      2005                                          1,430,024                          -
                                                              ===============                ===============`

-4-

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# CHURCH LOANS & INVESTMENTS TRUST

(A Real Estate Investment Trust)
Notes to Condensed Financial Statements (Unaudited)

## NOTE 4 - MORTGAGE LOANS, CHURCH BONDS AND INTERIM
CONSTRUCTION LOANS

Mortgage  loans, church bonds and interim construction loans on
which the accrual of interest had been  discontinued  amounted to $5,625,910 and
$2,522,099  at September 30, 2000 and 1999,  respectively.  If interest on these
mortgage loans, church bonds and interim  construction loans had been accrued as
earned,  interest and fees on loans in the accompanying  condensed statements of
income would have been increased by approximately  $305,000 and $153,000 for the
six-month  periods ended  September 30,  2000 and 1999,  respectively.  Interest
income actually  recognized during 2000 and 1999 was approximately  $323,000 and
$32,000, respectively.

## NOTE 5 - SECURED SAVINGS CERTIFICATES

Secured  Savings  Certificates  (Certificates)  are  issued  in
amounts  of $1,000 or more and have  single  maturity  dates  from 30 days to 10
years from date of issue.  With respect to an individual  Certificate,  interest
rate  and  frequency  of  payment  of  interest  (either   monthly,   quarterly,
semiannually,  annually or at maturity) are fixed at the time of issuance of the
Certificate.  Effective  July  1997,  Church  Loans  discontinued  the  sale  of
Certificates.

Certificates  are secured under the terms of an indenture  that
requires, among other things, the pledge of mortgage notes receivable with total
unpaid principal amounts not less than 100% of the aggregate principal amount of
Certificates outstanding.

This information is an integral part of the
accompanying condensed financial statements-5-

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# CHURCH LOANS & INVESTMENTS TRUST

(A Real Estate Investment Trust)

Item   2. Managements   Discussion  and
Analysis or Plan of Operation

Results of  Operations - Three-Month  and Six-Month  Periods  Ended  September  30, 2000 as Compared to the  Three-Month  and Six-Month
Periods Ended September 30, 1999:

# Revenues

The Trust's revenues are derived from interest income earned on
loans as well as,  to a lesser  degree,  interest  earned  on  church  bonds and
short-term  investments.  Such revenues  (decreased)  increased by $(43,827) and
$539,999 for the six-month  and  three-month  periods ended  September 30, 2000,
respectively,  as compared to the corresponding periods in 1999. Included in the
2000 periods is the revenue  recognized from interest  payments  received on two
large loans that the interest is recognized on a cash basis,  which  amounted to
approximately  $292,000.  Included in the 1999 periods is the revenue recognized
on a loan,  which was paid in full and had been accounted for as a nonperforming
loan by the Trust and certain interest  payments had been credited to principal.
Therefore,  the pay-off resulted in an additional recognition of interest income
of approximately $611,000 during June 1999. Additionally,  average loan balances
and rate of returns  increased during the 2000 periods.  Loans  outstanding were
$41,129,669  and $34,470,948 at September 30, 2000 and 1999,  respectively.  The
average rate of return of the mortgage loan and church bond portfolio  increased
from 9.86% at September 30, 1999 to 10.67% at September 30, 2000.

# Interest Expense

The  most  significant  expense item is interest  expense which
comprised the majority of total  operating  expense for each of the  three-month
and  six-month  periods  ended  September  30,  2000 and 1999.  The  increase of
$173,396 and $255,457 in interest  expense during the  three-month and six-month
periods ended September 30, 2000, respectively, resulted from an increase in the
average  total  amount of  indebtedness  as compared to the same  periods  ended
September 30,  1999 and an increase in the weighted average interest rate on all
indebtedness  from  7.31%  at  September  30,  1999 to 8.50%  at  September  30,
2000.

# Other Income

Other  income was  $184,934 and $81,654 for the  six-month  and
three-month periods ended September 30, 2000 and was greater than the $4,792 and
$2,136 for the same periods in 1999,  primarily due to the gain on sale of other
real estate of $180,662 and $79,518 for the same periods during 2000.

-6-

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# CHURCH LOANS & INVESTMENTS TRUST

(A Real Estate Investment Trust)
PART II. OTHER INFORMATION

Item  4. Submission  of  Matters  to a Vote of
Security Holders:

The annual meeting of shareholders of the Trust was held on July
21, 2000. At such meeting,  each of the  individuals  named below was elected to
the Board of Trust  Managers of the Trust to serve until the next annual meeting
of the shareholders of the Trust:

`Number of shares
                                                          For                    Against
                                                          ---                    -------
       Mike Bahn                                       3,941,555                   7,509
       Larry Brown                                     3,940,043                   9,021
       Terry Hays                                      3,941,555                   7,509
       Alfred J. Smith                                 3,941,555                   7,509
       Bill R. McMorries                               3,941,555                   7,509
       Steve Rogers                                    3,941,555                   7,509
       Jack R. Vincent                                 3,941,555                   7,509`

Additionally,  shareholders  voted to ratify Clifton  Gunderson
P.L.L.C. as auditors for the year ending March 31, 2001 as follows:

`For                                             3,902,707
       Against                                               796
       Abstain                                            45,561`

Item 6. Exhibits and Reports on Form 8-K:
(a)    Exhibits:  None.
(b) Reports on Form 8-K: None

-7-

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# CHURCH LOANS & INVESTMENTS TRUST

SIGNATURES

In accordance with the requirements of the Exchange Act, the
registrant has caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

# CHURCH LOANS & INVESTMENTS TRUST

|By | /s/ B. R. McMorries
         ______________________________
                 B. R. McMorries, Chairman | Dated: 11/14/2000 | 
|-- | ------------------------------------------------------------------------------------------------------ | ----------------- | 

|By | /s/ Kelly Archer
         ______________________________
                 Kelly Archer
                 Chief Financial Officer | Dated: 11/14/2000 | 
|-- | ------------------------------------------------------------------------------------------------------------------------------- | ----------------- | 

8

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