================================================

                    U.S. Securities and Exchange Commission

                             Washington, D.C. 20549

                                   ----------

                                  FORM 10-QSB

                     [x] QUARTERLY REPORT UNDER SECTION 13
                      OR 15(d) OF THE SECURITIES EXCHANGE
                                  ACT OF 1934
                For the quarterly period ended September 30, 1999

                                       OR

                     [ ] TRANSITION REPORT UNDER SECTION 13
                      OR 15(d) OF THE SECURITIES EXCHANGE
                                  ACT OF 1934

                                   ----------

                           Commission File No. 0-8117


                        CHURCH LOANS & INVESTMENTS TRUST


     State of Organization                      IRS Employer Identification
     ---------------------                      ---------------------------
           Texas                                       No. 75-6030254
                                 5305 I-40 West
                             Amarillo, Texas 79106

                  Registrant's telephone number: 806-358-3666


                                   ----------


     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,  1999,  7,000,806  shares  of the  Registrant's  shares of
beneficial interest were outstanding.

     Transitional Small Business Disclosure Format (check one)

                               Yes [ _ ] No [ X ]
<PAGE>
                        CHURCH LOANS & INVESTMENTS TRUST



                                     INDEX

                                                                     Page
                                                                     ----
        Part I.

             Item 1:  Financial Information:

                      Condensed Balance Sheets at September 30, 1999
                          and March 31, 1999 .......................   1

                      Condensed Statements of Income for the
                          six-month periods ended
                          September 30, 1999 and 1998 ..............   2

                      Condensed Statements of Cash Flows
                          for the six-month periods ended
                          September 30, 1999 and 1998 .............    3

                      Notes to Condensed Financial Statements .....    4

             Item 2:  Management's Discussion and Analysis or
                       Plan of Operation ..........................    6

        Part II.  Other Information ...............................    9

        Signatures ................................................    10
<PAGE>
                        CHURCH LOANS & INVESTMENTS TRUST
                        (A Real Estate Investment Trust)

                          PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

                      Condensed Balance Sheets (Unaudited)
                      September 30, 1999 and March 31, 1999

                  ASSETS                      September 30, 1999  March 31, 1999
                  ------                      ------------------  --------------
CASH AND CASH EQUIVALENTS ......................   $    164,911    $    181,068

    Mortgage loans and church bonds -
     performing ................................     23,081,649      23,109,175
    Interim construction loans - performing ....     10,165,372      10,406,937
    Nonperforming mortgage loans, church
     bonds and interim construction loans ......      2,522,099       3,555,029
    Less: Allowance for possible credit losses .     (1,298,172)     (1,215,213)
                                                   ------------    ------------
                                                     34,470,948      35,855,928
    Accrued interest receivable ................        476,223         323,396
    Notes receivable ...........................        509,216         407,111
                                                   ------------    ------------
                  Total receivables ............     35,456,387      36,586,435
PROPERTY AND EQUIPMENT, net ....................        174,111         181,947
REAL ESTATE ACQUIRED THROUGH FORECLOSURE .......        925,488         314,196
OTHER ASSETS ...................................         32,530          28,891
                                                   ------------    ------------
TOTAL ASSETS ...................................   $ 36,753,427    $ 37,292,537
                                                   ============    ============
                      LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
    Notes payable and line of credit:
      Related party ............................   $  1,935,239    $  1,921,680
      Other ....................................     10,152,035      10,185,984
                                                   ------------    ------------
                                                     12,087,274      12,107,664
                                                   ------------    ------------
    Secured savings certificates ...............      1,419,000       2,763,376
    Accrued interest payable ...................          3,175         104,785
    Other ......................................      1,016,888       1,059,035
                                                   ------------    ------------
                  Total liabilities ............     14,526,337      16,034,860
                                                   ------------    ------------
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 ...................      1,619,714         650,301
    Treasury shares, at cost (6,596 shares) ....        (16,490)        (16,490)
                                                   ------------    ------------
                  Total shareholders' equity ...     22,227,090      21,257,677
                                                   ------------    ------------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY .....   $ 36,753,427    $ 37,292,537
                                                   ============    ============

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

                                      -1-
<PAGE>
                        CHURCH LOANS & INVESTMENTS TRUST
                        (A Real Estate Investment Trust)
                   Condensed Statements of Income (Unaudited)
              Three-month periods ended September 30, 1999 and 1998

                                     Three-month periods Six-month periods ended
                                     ended September 30,   ended September 30,
                                      1999        1998      1999        1998
                                      ----        ----      ----        ----
INTEREST INCOME AND FEES
    Interest and fees on mortgage
     loans, church bonds, and
     interim construction loans $963,149   $1,155,129   $2,576,374   $2,289,823
    Interest on temporary
       investments ........       25,210        7,507       30,558       20,251
                              ----------   ----------   ----------   ----------
          Total interest income
           and fees .......      988,359    1,162,636    2,606,932    2,310,074
                              ----------   ----------   ----------   ----------
DEBT EXPENSE
    Interest ..............      250,507      288,854      496,036      591,785
    Amortization of commissions
       paid to brokers             2,770        9,655        7,829       21,894
                              ----------   ----------   ----------   ----------
          Total debt expense     253,277      298,509      503,865      613,679
                              ----------   ----------   ----------   ----------
          Net interest income    735,082      864,127    2,103,067    1,696,395
PROVISION FOR POSSIBLE
    CREDIT  LOSSES ........       45,000       45,000       90,000       90,000
                              ----------   ----------   ----------   ----------
          Net interest income
            less provision for
            possible credit
            loses                690,082      819,127    2,013,067    1,606,395
OTHER INCOME ..............        2,136          666        4,792        2,095
OTHER OPERATING EXPENSES
    General and administrative   161,941      133,957      320,474      299,263
    Board of Trust
    Managers' fees                13,588       13,332       27,891       27,745
                              ----------   ----------   ----------   ----------
          Total other
           operating expenses    175,529      147,289      348,365      327,008
                              ----------   ----------   ----------   ----------
          Income before provision
              for taxes ...      516,689      672,504    1,669,494    1,281,482
PROVISION FOR INCOME TAXES          --           --           --            449
                              ----------   ----------   ----------   ----------
NET INCOME ................   $  516,689   $  672,504   $1,669,494   $1,281,033
                              ==========   ==========   ==========   ==========
WEIGHTED AVERAGE NUMBER
    OF SHARES OUTSTANDING .    7,000,806    7,007,040    7,000,806    7,007,222
                              ==========   ==========   ==========   ==========
NET INCOME PER SHARE          $      .07   $      .10   $      .24   $      .18
                              ==========   ==========   ==========   ==========
DIVIDENDS PER SHARE                -            -              .10          .11
                              ==========   ==========   ==========   ==========

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

                                      -2-
<PAGE>
                        CHURCH LOANS & INVESTMENTS TRUST
                        (A Real Estate Investment Trust)

                 Condensed Statements of Cash Flows (Unaudited)
               Six-month periods ended September 30, 1999 and 1998

                                                          1999          1998
                                                          ----          ----
CASH FLOWS FROM OPERATING ACTIVITIES

    Net income                                      $ 1,669,494    $  1,281,033
    Adjustments to reconcile net income to net
       cash provided by operating activities:
          Depreciation .........................          7,836           7,836
          Amortization of debt expense .........          7,829          21,894
          Amortization of loan discounts .......        (42,751)       (183,079)
          Provision for possible credit losses .         90,000          90,000
          Changes in:
              Accrued interest receivable ......       (152,827)        (15,532)
              Accrued interest payable .........       (101,610)         72,277
              Other liabilities ................        (42,147)         51,173
          Other, net ...........................        (11,468)        (19,536)
                                                   ------------    ------------
                  Net cash provided by
                   operating activities ........      1,424,356       1,306,066
                                                   ------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES
    Investment in mortgage and interim
       construction loans and church bonds .....     (8,502,090)    (13,674,803)
    Payments received on mortgage and interim
       construction loans and church bonds .....      9,228,529      12,500,856
    Advances of notes receivable ...............       (266,873)       (192,601)
    Payments received on notes receivable ......        164,768         167,312
                                                   ------------    ------------
                  Net cash provided (used) by
                   investing activities ........        624,334      (1,199,236)
                                                   ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES
    Borrowings on notes payable ................     11,128,606      11,350,168
    Principal payments on:
       Secured savings certificates ............     (1,344,376)     (2,093,325)
       Notes payable ...........................    (11,148,996)     (8,490,881)
    Cash dividends paid ........................       (700,081)       (770,814)
    Treasury shares acquired ...................           --           (10,515)
                  Net cash used by
                   financing activities ........     (2,064,847)        (15,367)
                                                   ------------    ------------
                  Increase (decrease) in cash
                   and cash equivalents ........        (16,157)         91,463
CASH AND CASH EQUIVALENTS AT
     BEGINNING OF PERIOD .......................        181,068          32,403
                                                   ------------    ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD .....   $    164,911    $    123,866
                                                   ============    ============
Supplemental disclosure of cash flow information:
     Cash paid during the period for interest ..   $    597,646    $    519,508
                                                   ============    ============
Real estate acquired through foreclosure .......   $    611,292    $       --
                                                   ============    ============

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

                                      -3-
<PAGE>
                        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,
1999 and 1998 were as follows:


                                Mortgage loan and         Total     Net interest
                               church bond portfolio  indebtedness   rate margin
                               ---------------------  ------------   -----------

         September 30, 1999            9.86%              7.31%         2.55%
         September 30, 1998           10.34%              7.33%         3.01%

NOTE 3 - Contractual Maturities

Scheduled  principal payments on mortgage loans,  church bonds and interim loans
and  indebtedness  (including  secured savings  certificates and notes payable)
outstanding at September 30, 1999, for the five twelve-month  periods subsequent
to September 30, 1999, follow:


            Twelve-month period    Mortgage loans, church bonds
            ending September 30         and interim loans           Indebtedness
            -------------------         -----------------           ------------

                      2000                $13,091,830                $12,177,274
                      2001                  1,384,617                  1,329,000
                      2002                  1,407,670                      -
                      2003                  1,069,154                      -
                      2004                  1,519,571                      -
                                          ===========                ===========

                                      -4-
<PAGE>
                       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  $2,522,099  and  $2,920,775  at
September 30, 1999 and 1998, 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  $153,000 and $97,000 for the six-month  periods
ended  September  30,  1999 and 1998,  respectively.  Interest  income  actually
recognized  during  1999  and  1998  was  approximately   $32,000  and  $46,000,
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.

NOTE 6 - LINE OF CREDIT PAYABLE TO THE BANK

Effective September 30, 1999, the Trust renewed a $15,000,000 line of credit, of
which  $3,050,000  was owed at September  30, 1999.  The line of credit  expires
December  31,  2000 and bears  interest  at 1% below  prime.  The line of credit
provides for certain  commitment fees and for the Trust to pledge mortgage loans
receivable having unpaid principal  balances with an aggregate present value not
less  than  110% of all  indebtedness  owed to the  bank.  Interest  is  payable
semiannually.  Additionally,  the line of credit  requires  that the Trust's net
worth be more than $18,000,000 and its total  indebtedness shall not exceed 150%
of its net worth.

                   This information is an integral part of the
                       accompanying financial statements.

                                      -5-
<PAGE>
                        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,
1999 as Compared to the  Three-Month  and Six-Month  Periods Ended September 30,
1998:

                                    Revenues

On June 17, 1999, the Trust  received  $1,380,493 in full and final payment of a
loan owing to the Trust from St. Stephens  Church of God in Christ,  Inc. of San
Diego,  California.  Such  amount  paid  in full  the  principal,  interest  and
attorney's fees owing to the Trust by such Borrower. The loan 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.

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 increased (decreased) by $296,858 and $(174,277) for
the six-month and three-month periods ended September 30, 1999, respectively, as
compared to the  corresponding  periods in 1998.  Included in the 1999 six-month
period is the revenue  recognized from the pay-off discussed above.  Included in
the  1998  periods  is  approximately  $127,000  of loan  discount  amortization
recognized  from the early pay-off of a large loan.  Additionally,  average loan
balances  and  rate  of  returns  decreased  during  the  1999  periods.   Loans
outstanding  were  $34,470,948  and  $35,696,300 at September 30, 1999 and 1998,
respectively.  The average rate of return of the  mortgage  loan and church bond
portfolio  decreased from 10.34% at September 30, 1998 to 9.86% at September 30,
1999.

                              Nonperforming Assets

During the  three-months  ended  September 30, 1999,  the Trust  foreclosed on a
nonperforming loan amounting to $611,292.  Additionally, the Trust classified as
nonperforming an interim loan amounting to $400,000 and wrote-off  approximately
$35,000 of accrued interest receivable related to the loan.

Additionally,  at  September  30,  1999,  the  Trust has  three  loans  totaling
approximately $4,418,000 (accrued interest totaling approximately $193,000) to a
certain  borrower  that began  experiencing  cash flow  difficulty  and has been
unable to make certain required interest  payments.  The Trust believes that the
borrower  may be able to  improve  its cash  flow  and,  therefore,  has not yet
accounted for these loans as nonperforming;  however, the Trust will continue to
closely  monitor  these  loans,  and it is  possible  that  the  loans  could be
classified as nonperforming in the future.

                                Interest Expense

The most  significant  expense  item is interest  expense  which  comprised  the
majority of total operating  expense for the  three-month and six-month  periods
ended  September  30,  1999 and 1998.  The  decrease  of $95,749  and $38,347 in
interest  expense during the six-month and  three-month  periods ended September
30, 1999, respectively, resulted from an decrease in the average total amount of
indebtedness  outstanding  as compared to the same periods  ended  September 30,
1998. The weighted average interest rate on all indebtedness  decreased slightly
from 7.33% at September 1998 to 7.31% at September 30, 1999.

                                      -6-
<PAGE>
                        CHURCH LOANS & INVESTMENTS TRUST
                        (A Real Estate Investment Trust)

                            Other Operating Expenses

Other  operating  expenses  were  $175,529  for  the  three-month  period  ended
September  30, 1999 as compared to $147,289  for the same period in 1998.  Other
operating  expenses were $348,365 for the six-month  period ended  September 30,
1999 , or $21,357  more than the  $327,008  for the same  period in 1998.  These
increases  were  primarily  due  to  the  hiring  of an  additional  experienced
management person.

                                    Year 2000

The following  information  which appears in this section  constitutes Year 2000
Readiness  Disclosure,  pursuant  to  the  Year  2000  ("Y2K")  Information  and
Readiness  Disclosure Act. The Year 2000 issue is the result of computer systems
using a two-digit  format,  as opposed to four digits, to indicate the year. Any
of the Trust's computer programs or hardware that have  date-sensitive  software
or embedded chips may not appropriately interpret dates beyond the year 1999.

This could result in a system failure,  miscalculation  or other computer errors
causing  disruptions  of  operations.  The  Trust's  plan to  address  the issue
involves the follow five phases: awareness, assessment, remediation, testing and
implementation.  The plan also  involves  communicating  with  external  service
providers to ensure that they are taking  appropriate  action to remedy any Year
2000 issues.  To date,  the Trust has completed  its  assessment of systems that
could be affected by the Year 2000. As part of the  assessment  phase,  systems,
which have the greatest impact, were designated as mission critical systems.

Internal mission  critical  systems include the Trust's internal  accounting and
information system. This system includes a small server-based local area network
and a small peer-to-peer network that uses commercially  available operating and
networking software. The vendors (primarily Microsoft,  Compaq and Gateway) have
certified this hardware and software as Year 2000 compliant. The Trust's primary
application programs (including general ledger, mortgage loan, shareholder, bond
financing and Secured Savings  Certificate  accounting  modules) are customized.
During  November  1998,  an  independent  consultant  performed  an  analysis to
determine if programs were Year 2000 compliant. The cost of the testing was less
than $1,000.

The  Trust has  engaged  the  consultant  to  modify  and test the  noncompliant
programs.  Remediation  began  about  December  1998  and is now  complete,  and
programs are being  tested.  It is  estimated  that the cost to modify the files
will range from  $6,000 to $7,500  (excluding  the cost to upgrade  and  replace
systems used in the ordinary course of business).  Such costs will be charged to
expense as incurred.

The Trust's  operations are relatively  simple.  As far as essential vendors are
concerned,  the primary ones are considered to be the Trust's  primary bank (the
same bank serves as  depositor  and  lender),  and the  electric  and  telephone
utility.  The Trust has received  reports from these  providers  regarding their
efforts to attain Y2K readiness. The negative impact of large loan customers who
have not dealt with the  implications  of the Y2K  problem  on their  operations
could be serious to the Trust. However, the Trust does not believe that the risk
to its  typical  loan  customer  is as  great  as it is to a  normal  commercial
operation.  This is due to the fact that the source of loan  payments  generally
made by all churches is from individuals making contributions

                                      -7-
<PAGE>
                        CHURCH LOANS & INVESTMENTS TRUST
                        (A Real Estate Investment Trust)

                              Year 2000 (Continued)

via cash or check to the church.  Accordingly, it is believed that most churches
should not suffer  adversely  from the Y2K  issue.  Nevertheless,  the Trust has
surveyed its loan  customers to determine  their Y2K  compliance.  Most churches
have responded  that they will be in compliance.  The Trust intends to follow up
soon on those churches who have not responded.

The Trust believes that it has an effective program in place to resolve the Year
2000 issue in a timely manner and that it is unlikely that Year 2000 issues will
cause any  significant  problems  with  customer  service  or  otherwise  have a
material adverse impact on the Trust's operations with or financial performance.
However,  if appropriate  modifications are not completed in a timely manner for
some unexpected reason, the Year 2000 issue could impact the Trust's operations.
In  addition,  disruptions  in the economy  generally  resulting  from Year 2000
issues could also  materially  impact the Trust.  There can be no guarantee that
the systems of other companies on which the Trust is effected will be remediated
in a timely manner and not have any adverse impact on the Trust's operations. At
this time, the Trust has not developed year 2000 contingency  plans,  other than
the review and remedial  actions  described  above, and does not intend to do so
unless  the  Trust  believes  such  plans  are  merited  by the  results  of its
continuing Year 2000 review.

The Trust has not  developed a "worst case"  scenario  with respect to Year 2000
issues,  but  instead  has  focused  its  resources  on  identifying   material,
remediable problems and reducing uncertainties generally,  through the Year 2000
review described above.

                                      -8-
<PAGE>
                        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 16, 1999. 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                                       3,928,227          6,765
       Larry Brown                                     3,926,150          8,842
       Terry Hays                                      3,928,227          6,765
       Alfred J. Smith                                 3,928,227          6,765
       Bill R. McMorries                               3,927,846          7,146
       Steve Rogers                                    3,928,227          6,765
       Jack R. Vincent                                 3,926,150          8,842

Additionally,  shareholders  voted  to  ratify  Clifton  Gunderson  P.L.L.C.  as
auditors for the year ending March 31, 2000 as follows:

       For                                             3,905,051
       Against                                             3,310
       Abstain                                            26,631


Item 6. Exhibits and Reports on Form 8-K:

(a)    Exhibits:  None.

(b)    Reports on Form 8-K:  None.

                                      -9-
<PAGE>


                        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



DATE: October 15, 1999                             BY:/s/ B.R. McMorries
                                                   -----------------------------
                                                   B.R. McMorries,
                                                   Chairman of the Board of
                                                   Trust Managers


DATE: October 15, 1999                             BY:/s/ Kelly Archer
                                                   -----------------------------
                                                   Kelly Archer
                                                   Chief Financial Officer

                                      -10-