UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C.  20549

                                  FORM 10-Q

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

             For the quarterly period 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 33-11807

                          JHM ACCEPTANCE CORPORATION III
             (Exact name of registrant as specified in its charter)

                    MARYLAND                             52-1439055
          State or other jurisdiction of              (I.R.S. Employer
          incorporation or organization)             Identification No.)

     8300 GREENSBORO DRIVE, SUITE 970, MCLEAN, VA           22102
       (Address of principal executive offices)           (Zip Code)

      Registrant's telephone number, include area code:  (703)749-8225

     c/o EXECUTIVE OFFICES, INC., 42-C READ'S WAY, NEW CASTLE, DE 19720
          (Former name, former address and former fiscal year if changed
             from last report)

         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  

         Indicate the number of shares outstanding of each of the
         issuer's classes of common stock, as of the latest practicable
         date.

         At November 3, 1997, the registrant had 677 shares of common stock
         outstanding.
<PAGE>
                         JHM ACCEPTANCE CORPORATION III

                             INDEX TO FORM 10-Q

                       For Quarter Ended September 30, 1997
                              
                                                                         Page
                                                                        Number

                         PART I.    FINANCIAL INFORMATION

       Item 1.   Financial Statements                                      3
                 Balance Sheets (unaudited) as of September 30, 1997
                  and March 31, 1997                                       4
                 Statements of Income (unaudited) for the three
                  months and six months ended September 30, 1997
                  and September 30, 1996                                   5
                 Statements of Cash Flows (unaudited) for the six
                  months ended September 30, 1997 and Septmber 30, 1996    6
                 Notes to Financial Statements (unaudited)               7-8
       
       Item 2.   Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                      9

                         PART II.    OTHER INFORMATION

       Item 6.   Exhibits and Reports on Form 8-K                         10

                 SIGNATURES                                               11


<PAGE>
                           PART I.    FINANCIAL INFORMATION


          Item 1.  Financial Statements

          The financial statements included herein have been prepared by
          JHM Acceptance Corporation III ("JMAC III"), without audit, pursuant
          to the rules and regulations of the Securities and Exchange
          Commission ("SEC").  Certain information and footnote disclosures
          normally included in financial statements prepared in accordance
          with generally accepted accounting principles have been condensed
          or omitted pursuant to such SEC rules and regulations, although
          JMAC III believes that the disclosures are adequate to make the
          information presented not misleading.In the opinion of Management,
          all adjustments (consisting of normal recurring adjustments)
          necessary to fairly present the financial position, results of
          operations and cash flows at September 30, 1997, and for all the
          periods presented have been made.

          It is suggested that these financial statements be read in
          conjunction with the financial statements and notes thereto
          included in JMAC III's report on Form 10-K for the fiscal year
          ended March 31, 1997.

<PAGE>
<TABLE>
                             JHM ACCEPTANCE CORPORATION III
                                    BALANCE SHEETS    
                                     (unaudited)
                               
<CAPTION>
                                              
                                        September 30,1997        March 31,1997
                                            ---------              --------- 
<S>                                         <C>                    <C>      
             
ASSETS

Cash                                        $        0             $        0
                                            ----------             ----------
Total Assets                                $        0             $        0
                                            ==========             ==========

STOCKHOLDER'S EQUITY
     
Common stock - $10 par value,
 10,000 shares authorized, 677
 shares issued and outstanding                  1,000                  1,000
Additional paid-in capital                      5,000                  5,000
Retained deficit                               (6,000)                (6,000)
                                           ----------             ----------
Total Stockholder's Equity                          0                      0
                                           ----------             ----------  
Total Liabilities and
      Stockholder's Equity                 $        0             $        0
                                           ==========             ==========

<FN>
The accompanying notes are an integral part of these balance sheets.
</TABLE>
<PAGE>
<TABLE>


                             JHM ACCEPTANCE CORPORATION III
                                  STATEMENTS OF INCOME
                                     (unaudited)



<CAPTION>

                               For the three                For the six  
                               months ended                 months ended
                               September 30,                September 30,
                            1997          1996           1997          1996
                        ----------    ----------     ----------    ----------
<S                     <C>           <C>            <C>           <C> 
REVENUES

Interest and other
 income                $        0    $        0     $        0    $        0 
                       ----------    ----------     __________    __________

Total Revenues                  0             0              0             0 
                       ----------    ----------     ----------    ----------

EXPENSES

Accounting, legal,
 administrative and
 other expenses                 0             0              0             0 
                       ----------    ----------     ----------    ----------              
Total Expenses                  0             0              0             0
                       ----------    ----------     ----------    ----------
Net Loss               $        0    $        0     $        0    $        0                              

<FN>
The accopmanying notes are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>

                              JHM ACCEPTANCE CORPORATION III
                                STATEMENTS OF CASH FLOWS
                                      (unaudited)

<CAPTION>
                                          For the six          For the six
                                          months ended         months ended
                                       September 30, 1997   September 30, 1996
                                       ------------------   ------------------
<S                                         <C>                  <C>

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Loss                                    $        0          $         0

Adjustments to reconcile net loss 
 to net cash used in operating
 activities:

Increase in accounts payable
 and accrued liabilities                             0                   0
                                            ----------          ----------
Total Adjustments                                    0                   0
                                            ----------          ----------
Net Cash Provided by Operating
 Activities                                          0                   0
                                            ----------          ---------- 
CASH FLOWS FROM FINANCING ACTIVITIES:

Capital contribution                                 0                   0
                                            ----------          ----------  
Net Cash Provided by Financing
 Activities                                          0                   0
                                            ----------          ----------
Net increase in cash                                 0                   0
                                                      
Cash, beginning of period                            0               1,000
                                            ----------          ----------   
Cash, end of period                         $        0          $    1,000
                                            ==========          ========== 
<FN> 
The accompanying notes are an integral part of these statements.
</TABLE>

<PAGE>


                                JHM ACCEPTANCE CORPORATION III
                                NOTES TO FINANCIAL STATEMENTS
                                       September 30, 1997
                                           (unaudited) 


Note 1.    General

The accompanying financial statements reflect the accounts of JHM Acceptance
 Corporation III ("JMAC III").  The unaudited statements as of September 30,
 1997 and 1996, respectively, reflect, in the opinion of management, all
 adjustments (normal recurring in nature) necessary to present fairly the
 financial position as of September 30, 1997 and the results of operations and
 cash flows for the six months ended September 30, 1997 and 1996, respectively.
 These financial statements have been prepared by JMAC III, without audit,
 pursuant to the rules and regulations of the Securities and Exchange
 Commission. Certain information and footnote disclosures normally included
 in financial statements prepared in accordance with generally accepted
 accounting principles have been condensed or omitted pursuant to such rules
 and regulations, although JMAC III believes that the disclosures are adequate
 to make the information presented not misleading.  It is suggested that
 these financial statements be read in conjunction with the financial
 statements and notes thereto included in JMAC III's report on Form 10-K for
 the fiscal year ended March 31, 1997.

Note 2.   Organization

JHM Acceptance Corporation III was organized as a Maryland corporation on
 December 16, 1985.  Prior to March 7, 1988, JMAC III was known as Oxford
 Acceptance Corporation III and from March 7, 1988 to May 24, 1988,
 JMAC III was known as Montgomery Acceptance Corporation III.

JMAC III was organized for the purpose of issuing and selling collateralized
 mortgage obligations ("Bonds"), other notes and obligations, and acquiring,
 owning, holding, and pledging Mortgage-Backed Certificates guaranteed by
 the Government National Mortgage Association ("GNMA Certificates"),
 Guaranteed Mortgage Pass-Through Certificates issued by the Federal National
 Mortgage Association ("FNMA Certificates"), Mortgage Participation
 Certificates issued by the Federal Home Loan Mortgage Corporation
 ("FHLMC Certificates") (collectively, the "Mortgage Certificates") and
 obligations of others which are secured by the types of instruments
 referred to above. 

 Note 3.  Basis of Presentation

As of March 31, 1988, JMAC III had sold the residual cash flows for all
 outstanding series of Bonds.  As a result, JMAC III currently has no sources
 of cash flow from operations.  All cash flows from the Mortgage
 Certificates are restricted and must be paid first to the bondholders and
 then any excess (net of expenses) is distributed to the residual interest
 holders.  JMAC III has no responsibility for expenses related to its remaining
 series of Bonds.   

Preparation of financial statements in conformity with generally accepted
 accounting principles requires management to make estimates and assumptions
 that could affect the amounts represented in the financial statements and
 accompanying notes.  Actual results could differ from these estimates.  



<PAGE>


Note 4.  Summary of Significant Accounting Policies

Income Taxes

In accordance with an informal tax sharing plan, JMAC III files a consolidated
 tax return with its parent, JDS Capital Corporation, formerly known as JHM
 Capital Corporation ("JCC"). Accordingly, JMAC III computes its taxes due
 to JCC on a separate company basis with no benefit received for net
 operating losses.  No significant timing differences exist as of
 September 30, 1997.  No provision for taxes has been recorded for the six
 months ended September 30, 1997 and September 30, 1996 due to net operating
 losses.




<PAGE>


Item 2.  Management's Discussion and Analysis of Financial Condition and
 Results of Operations

Capital Resources and Liquidity

JMAC III's sources of funds with respect to its Bonds are receipts of principal
 and interest on the Mortgage Certificates, pledged as collateral for each
 series of Bonds, and the reinvestment income thereon.  Management believes
 that these sources of funds will be sufficient to pay the Bonds in
 accordance with their terms.  As of March 31, 1988, JMAC III had sold the
 residual cash flows for all of its outstanding series.  As a result, JMAC III
 currently has (a) no sources of cash flows as all cash flows from the
 Mortgage Certificates are restricated and must be paid first to the
 bondholders and then any excess (net of expenses) is distributed to the
 residual interest holders; and (b) no responsibilty for expenses related 
 to its remaining series. An affiliate performs the administration for 
 JMAC III's issuances.    

At September 30, 1997, JMAC III had a remaining balance available for
 issuance of additional bonds of $199,000,000 from a previous shelf
 registration. 

Results of Operations

JMAC III issued its Series F Bonds in 1987. 

Currently, JMAC III has no plans for issuance of collateralized mortgage 
 obligations.  The dominance of FNMA and FHLMC as issuers of REMIC securities
 has reduced the opportunities for JMAC III to issue such securities.  



<PAGE>
                           JHM ACCEPTANCE CORPORATION III

                                   FORM 10-Q

                           PART II.    OTHER INFORMATION


Item 6.Exhibits and Reports on Form 8-K

          (a) Exhibits - None

          (b) No reports on Form 8-K were filed during the quarter ended
               September 30, 1997.



<PAGE>
                                    SIGNATURES


Pursuant to the requirements 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.

                                  JHM ACCEPTANCE CORPORATION III
                                          (Registrant)






November 3, 1997                     Stephen P. Gavula
 Date                                Stephen P. Gavula
                                     Chairman of the Board of Directors
                                     and Chief Executive Officer
 




November 3, 1997                     Carole R. Parker
 Date                                Carole R. Parker
                                     Vice President and Chief Financial
                                     and Accounting Officer