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

	FORM 10-K

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

	For the fiscal year ended September 30, 1995.

	OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)

	For the transition period from ________ to ________

	Commission file number 33-36775.

	SUMMIT SECURITIES, INC.
	(Exact name of registrant as specified in its charter)

	IDAHO	82-0438135
	(State or other jurisdiction of	(I.R.S. Employer
	incorporation or organization)	Identification No.)

	WEST 929 SPRAGUE AVENUE, SPOKANE, WASHINGTON   99204
	(Address of principal executive offices)       (Zip Code)

Registrant's telephone number, including area code: (509)838-3111

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: None

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 by check mark if disclosure of delinquent filers pursuant 
to Item 405 of Regulation S-K is not contained herein, and will not 
be contained, to the best of registrant's knowledge, in definitive 
proxy or information statements incorporated by reference in Part 
III of this Form 10-K or any amendment to this Form 10-K. [x]

State the aggregate market value of the voting stock held by non-
affiliates of the registrant: Not Applicable

Indicate the number of shares outstanding of each of the issuer's 
classes of common stock, as of September 30, 1995
	Single Class: 10,000 shares

Documents incorporated by reference:  None.



	PART I
Item 1. Business

Definitions:

For ease of reading, the following is a compilation of several of 
the defined terms which appear regularly within this document.  
Also, See "Business".

Arizona Life:	Arizona Life Insurance Company

Certificates:	Where this term is capitalized it refers to the 
Investment Certificates being offered herein.  Where not 
capitalized, it refers to certificates generally.

Consolidated Group:  This term refers to the combined businesses 
consisting of Summit and all subsidiaries.

MIS:	Metropolitan Investment Securities, Inc.

Metropolitan:	Metropolitan Mortgage & Securities Co., Inc.

Old Standard:	Old Standard Life Insurance Company.

Preferred Stock:	Where this term is capitalized it refers to the 
Series S-2 Preferred Stock being offered herein. Where it is not 
capitalized, it refers to preferred stock generally. 

Receivables:	Investments in cash flows, consisting of obligations 
collateralized by real estate, structured settlements, annuities, 
lottery prizes and other investments.

Summit:	Summit Securities, Inc.


<PAGE>
BUSINESS

INTRODUCTION

	The Consolidated Group is a financial institution which 
consists of Summit, and several subsidiaries including insurance 
companies, a securities broker/dealer, and a property development 
services company.  Summit and Old Standard, are engaged in the 
business of investing in Receivables and other assets through funds 
provided by annuity sales, Receivable investment proceeds, 
certificate sales, preferred stock sales, and the resale of 
repossessed real estate.  Their goal is to achieve a positive spread 
between the return on their Receivables, and other investments and 
their cost of funds.  Summit may also engage in other businesses or 
activities without restriction in accordance with the provisions of 
its Articles of Incorporation.

	Summit was originally organized as a wholly-owned subsidiary of 
Metropolitan, a Washington corporation.  On September 9, 1994, 
Metropolitan and C. Paul Sandifur, Jr. completed a sale of the 
common stock of Summit to National Summit Corp.  National Summit 
Corp. is a holding company wholly-owned by C. Paul Sandifur Jr.  
Mr. Sandifur holds effective control of Metropolitan.  Prior to the 
sale, Mr. Sandifur held effective control of Summit, through 
Metropolitan.  Following the sale, Mr. Sandifur continues to hold 
effective control of Summit through National Summit Corp.  There 
were not and are not any plans to make any material changes in the 
business, operations or administration of Summit as a result of the 
sale.  See "CERTAIN TRANSACTIONS".

Recent Developments-Subsidiary Acquisitions

	On January 31, 1995, Summit acquired a securities 
broker/dealer, MIS, from Metropolitan.  Also, on January 31, 1995, 
Summit Property Development, Inc. commenced operations, providing 
real estate development services to Metropolitan and its 
subsidiaries.  See "CERTAIN TRANSACTIONS".

	On May 31, 1995, Summit, through a wholly-owned holding 
company, purchased Old Standard from Metropolitan.  See "CERTAIN 
TRANSACTIONS".

	On June 1, 1995, Old Standard entered into a Stock Purchase 
Agreement to acquire Arizona Life, an insurance company domiciled in 
Arizona.  The acquisition was completed on December 28, 1995.  
Arizona Life has been inactive since approximately August 1994, 
except to the extent necessary to retain its licenses.  Arizona Life 
holds licenses to engage in insurance sales in seven states.  
Obtaining access to these additional markets is the principal 
purpose for the purchase.  Approval of the acquisition was obtained 
from the State of Arizona Department of Insurance.  As of January 1, 
1996, approval is pending in the remaining six states where Arizona 
Life currently holds insurance licenses.  Management anticipates 
obtaining approval from the remaining six states.  However, there is 
no assurance such approvals will be obtained.  During 1996, Arizona 
Life is expected to commence annuity sales, and to invest in 
Receivables, similar to the activities of Old Standard.  See 
"CERTAIN TRANSACTIONS".

MANAGEMENT

	As of September 30, 1995, Summit's personnel consisted of its 
officers and directors, an accountant and an attorney. See 
"MANAGEMENT".  Most of those individuals are also employed by 
Metropolitan.  It is anticipated that the Metropolitan employees 
will continue to devote substantially all of their time to their 
duties related to their respective positions with Metropolitan and 
its other affiliates subject to the necessary commitment of time to 
ensure that Summit fulfills its obligations to Preferred 
Shareholders and its duties under the Indenture pursuant to which it 
issues Certificates and such other duties and responsibilities as 
Summit may undertake in the conduct of its business or as may be 
required by law.  No additional Summit employees are expected to be 
necessary or hired during the foreseeable future.

	As of September 30, 1995, Old Standard had four employees who 
perform the annuity processing and servicing activities.  On that 
same date, Summit Property Development's staff consisted of twenty-
three employees, while MIS had four staff employees, and independent 
contractor agreements with twenty-one registered representatives.  
Most of the officers and directors of these subsidiaries are also 
employees of Metropolitan, and/or its subsidiaries.  It is 
anticipated that they will continue to devote substantial amounts of 
time to their duties related to their respective positions with 
Metropolitan and its subsidiaries, subject to the necessary 
commitment of time to conduct the business of the Consolidated 
Group's subsidiaries.

	The Consolidated Group is currently developing and evaluating 
the possible expansion into direct lending, principally residential 
lending.  The Consolidated Group is also evaluating the possible 
securitization and sale of pools of loans, principally to be sold to 
institutional investors.  Neither of these activities is expected to 
have a material impact on the business of the Consolidated Group in 
fiscal 1996.

	Metropolitan provides management, Receivable acquisition and 
Receivable collection services for a fee to Summit and to Old 
Standard pursuant to the terms of Management, Receivable Acquisition 
and Servicing Agreements.  The Receivable acquisition fees are based 
upon yield requirements established by Summit and by Old Standard.  
Each company pays, as its Receivable acquisition service fee, the 
difference between the yield requirement and the yield which 
Metropolitan actually negotiates when the Receivable is acquired.  
In 1995, Summit and Old Standard incurred service fees for 
Receivable acquisitions from Metropolitan of approximately 
$1,967,000.  Management believes that the terms and conditions of 
the agreements with Metropolitan are at least as favorable to Summit 
and Old Standard as those that could have been obtained by a non-
affiliated third party.  The agreements are non-exclusive and may be 
terminated in whole or part by either party upon notice to the other 
party.

RECEIVABLE INVESTMENTS

	The Receivables consist primarily of notes collateralized by 
real estate mortgages, deeds of trust and conditional real estate 
sales contracts.  To a lesser extent, Summit and Old Standard also 
acquire other types of Receivables, including but not limited to 
annuities and lottery prizes.  All such Receivables are purchased at 
prices calculated to provide a desired yield.  Often, in order to 
obtain the desired yield, the Receivables will be purchased at a 
discount from their face amount.  See "BUSINESS-YIELD and DISCOUNT 
CONSIDERATIONS".

	Summit's investments in Receivables are financed primarily by 
the cash flow from Receivables, the sale of Certificates, and the 
sale of Preferred Stock.  Old Standard's investments in Receivables 
are financed primarily by the cash flows from Receivables, the sale 
of annuities, and income from securities investments.

Sources of Receivables

	Summit and Old Standard acquire their Receivables through the 
services of Metropolitan.  See "BUSINESS-Management".  Approximately 
90% of these Receivables are acquired by Metropolitan through 
independent brokers located throughout the country. These brokers 
typically deal directly with private individuals or organizations 
who own and wish to sell a Receivable.  These independent brokers 
contact one of Metropolitan's branch offices to submit the 
Receivable for evaluation by Metropolitan.  It is the opinion of 
management that Metropolitan's responsiveness to the independent 
Receivable brokers and to Receivable sellers has been a key to 
Metropolitan's ability to attract and purchase quality Receivables 
at acceptable yields.

	Metropolitan is also approached directly by prospective 
Receivable sellers. These direct contacts are generally the  result 
of a referral or a previous business contact.  Metropolitan also 
negotiates the acquisition of portfolios of Receivables from banks, 
savings and loan associations, the Resolution Trust Corporation and 
the Federal Deposit Insurance Corporation.   Summit and Old Standard 
have acquired  Receivables from all such sources through 
Metropolitan.

	In order to enhance its position in the Receivables market, 
Metropolitan has developed a broker software program called 
BrokerNet.  BrokerNet is a menu driven program which assists brokers 
in preparing and completing proposals to sell Receivables to 
Metropolitan.  In addition, the program assists in analyzing the 
quality of the Receivable, and provides online quotes for the 
purchase price for the Receivable.  It is planned that this software 
will be further developed to assist in preparing the legal documents 
needed to purchase a Receivable, assist in monitoring the closing of 
a Receivable purchase, and ultimately, transfer the Receivable data 
directly into Metropolitan's Receivable servicing and collection 
system.  All of these efforts are intended to streamline the 
decision making process, make the closing time quicker, and continue 
to enhance Metropolitan's position in the Receivable purchasing 
industry.  Although the initial response from the Receivable brokers 
appears positive, there can be no assurance that this software 
program will create a competitive advantage.

	Metropolitan's Receivable acquisition activities (total 
activities for itself and for others), grew from approximately 
$156.6 million and $142.5 million in 1993 and 1994, respectively, to 
$259.8 million in 1995.  At the same time, Metropolitan's average 
closing time has ranged from 23 days in 1995, to 24 days in 1994, 
and 27 days in 1993.  Management considers closing time to be an 
important factor in a seller's decision to sell a Receivable to 
Metropolitan.

Yield and Discount Considerations

	Summit and Old Standard each establish their own yield 
requirements for Receivable acquisitions.  Yield requirements are 
established in light of capital costs, market conditions, the 
characteristics of particular classes or types of Receivables and 
the risk of default by the Receivable payor.  See Also "BUSINESS-
RECEIVABLE INVESTMENTS-Underwriting".  Each company's yield 
requirements are provided to Metropolitan, which negotiates 
Receivable purchases at prices calculated to provide the desired 
yield.  Often this results in a purchase price less than the 
Receivable's unpaid balance.  The difference between the unpaid 
contractual balance and the purchase price is the "discount."  The 
amount of the discount will vary in any given transaction depending 
upon the yield requirements at the time of the purchase and the 
terms and nature of the Receivable.

	For Receivables of all types, the discounts originating at the 
time of purchase, net of capitalized acquisition costs, are 
amortized using the level yield (interest) method over the remaining 
contractual term of the contract.  For Receivables which were 
acquired after September 30, 1992, these net purchase discounts are 
amortized on an individual contract basis using the level yield 
method over the contractual remaining life of the contract.  For 
those Receivables acquired before October 1, 1992, these net 
purchase discounts were pooled by the fiscal year of purchase and by 
similar contract types, and amortized on a pool basis using the 
level yield method over the expected remaining life of the pool.  
For these Receivables, the amortization period, which is 
approximately 78 months, is based on an estimated constant 
prepayment rate of 10-12 percent per year on scheduled balances, 
which is consistent with Summit's and Old Standard's prior 
experience with similar loans and their expectations.

	YIELD CHART: REFER TO GRAPH APPENDIX ITEM 2

	Management establishes the yield requirements for Receivable 
investments by assuming that all payments on the Receivables will be 
made and that a certain percentage of unpaid balances will be 
prepaid on an annual basis (9% for fiscal 1995).  During fiscal 
1995, the Consolidated Group's average initial yield requirement was 
10.5% to 11%, for Receivables collateralized by real estate.  
However, to the extent that Receivables are purchased at a discount 
and payments are received earlier than anticipated, the discount is 
earned more quickly resulting in an increase in the yield. 
Conversely, to the extent that payments are received later than 
anticipated, the discount is earned less quickly resulting in a 
lower yield.

	A greater effective yield can also be achieved through 
negotiating amendments to the Receivable agreements. These 
amendments may involve adjusting the interest rate and/or monthly 
payments, extension of financing in lieu of a required balloon 
payment or other adjustments in cases of delinquencies where the 
payor appears able to resolve the delinquency.  In addition, 
extensions of additional credit and/or refinancing of the Receivable 
may be negotiated.  As a result of these amendments, the cash flow 
may be maintained or accelerated, the latter of which increases the 
yield realized on a Receivable purchased at a discount.

Underwriting

	The review of the Receivables being considered for acquisition 
(underwriting) is performed for Summit and Old Standard by 
Metropolitan.  When Metropolitan is offered a Receivable, an initial 
study of the terms of the Receivable, including any associated 
documents, is performed by Metropolitan's underwriting and closing 
staff.  If the Receivable appears acceptable, the purchase price for 
the Receivable is calculated based on the Consolidated Group's yield 
requirements at that time.  If the broker and/or seller accepts the 
proposed purchase price, a written agreement to purchase is 
executed, subject to Metropolitan's full underwriting review.  
Metropolitan also negotiates the purchases of "partial" interests in 
Receivables.  Partial purchases are purchases of the right to 
receive a portion of the Receivable's balance, and where the 
seller's right to the unsold portion of the Receivable is 
subordinated to the interest of the purchaser.  These "partials" 
generally result in a reduced level of investment risk to the 
purchaser than if the entire Receivable cash flow is purchased.

	The underwriting guidelines adopted by Summit and Old Standard 
for Receivables collateralized by real estate include a requirement 
that the ratio of their investment in a Receivable compared to the 
appraised value of the property which collateralizes the Receivable 
may not exceed 75-80% (depending upon company, collateral type and 
collateral quality) on Receivables collateralized by single family 
residences; and that the ratio of the investment to the property's 
appraised value may not exceed 70% on Receivables collateralized by 
other types of improved property; and  55% on unimproved land.  
These investment to collateral ratio requirements generally provide 
higher than conventional levels of collateral to protect the 
purchaser's investment in the event of a default on a Receivable.

	For each Receivable collateralized  by real estate, a current 
market value appraisal of the real estate providing collateral is 
obtained.  These appraisals are obtained through licensed 
independent appraisers or through one of Metropolitan's licensed 
staff appraisers.  These appraisals are generally based on visual 
drive-by inspections, and comparative sales analysis.  Each 
independent appraisal is also subject to review by a staff 
appraiser.

	Additionally, every proposed investment in a Receivable 
collateralized by real estate is evaluated by Metropolitan's 
demography department utilizing computerized data which identifies 
local trends in property values, personal income, population and 
economic indicators.  Other underwriting functions related to 
Receivables collateralized by real estate may include obtaining and 
evaluating credit reports on the Receivable payors; evaluation of 
the potential for environmental risks; verifying payment histories 
and current payment status; and obtaining title reports to verify 
the record status of the Receivable and other matters of record. 

	Summit and Old Standard also acquire Receivables, through 
Metropolitan, which are not collateralized by real estate, such as 
annuities and lottery prizes.  The annuities often arise out of the 
settlement of legal disputes where the prevailing party is awarded a 
sum of money payable over a period of time.  In the case of such 
settlement annuity purchases, the underwriting guidelines generally 
require that Metropolitan review the settlement agreement.  In the 
case of all annuity purchases, underwriting guidelines generally 
require that Metropolitan review the annuity policy, related 
documents, the credit rating of the payor (frequently an insurance 
company), determine the existence of any state insurance fund 
designed to protect annuity holders, and review other factors 
relevant to the risk of purchasing a particular annuity as deemed 
appropriate by management in each circumstance.  In the case of 
lottery prizes, the underwriting guidelines generally include a 
review of the documents providing proof of the prize, and a review 
of the credit rating of the insurance company, or other entity, 
making the lottery prize payments.  Where the lottery prize is from 
a state run lottery, the underwriting guidelines generally include a 
determination of whether the prize is backed by the general credit 
of the state, and confirmation with the respective lottery 
commission of the prize winners right to sell the prize, and 
acknowledgment from the lottery commission of their receipt of 
notice of the sale.  In many states, in order to sell a state 
lottery prize, the winner must obtain a court order permitting the 
sale.  In those states, a certified copy of the court order is 
required.

	Receivable investments which are identified for legal review 
are referred to Metropolitan's in-house legal department which 
currently includes a staff of five attorneys.  Receivable purchases 
which involve investments greater than specified amounts are 
submitted to an additional special risk evaluation committee, and 
are subject to legal department review.  The investment amount which 
gives rise to special risk evaluation is dependent upon the type and 
quality of collateral, ranging from $250,000 for conventionally 
financiable residential property to $100,000 for residential 
property which is not owner occupied.  In addition, transactions 
involving investments of more than $500,000 are subject to Board of 
Director's approval.

	Upon completion of the underwriting process and the approval of 
the investment, appropriate closing and transfer documents are 
executed by the seller and/or broker, and the transaction is funded.

	Management believes that the underwriting functions that are 
employed in its Receivable investment activity are as thorough as 
reasonably possible considering the nature of this business.  
Summit's and Old Standard's acquisition of Receivables 
collateralized by real estate should be distinguished from the 
conventional mortgage lending business which involves substantial 
first-hand contact by lenders with each borrower and the ability to 
obtain an interior inspection appraisal prior to granting a loan.

Current Mix of Receivable Investment Holdings

	The Consolidated Group's investments in Receivables includes 
Receivables collateralized by first or second liens, primarily on 
single family residential property.  Management believes that these 
Receivables present lower credit risks than a portfolio of mortgages 
collateralized by commercial property or unimproved land, and that 
much of the risk in the portfolio is dissipated by the large numbers 
of relatively small individual Receivables and their geographic 
dispersion.

	The following table presents consolidated information about the 
Consolidated Group's investments in Receivables collateralized by 
real estate, as of September 30, 1995 and 1994:


<TABLE>
<CAPTION>
	1995	1994
<S>	<C>          	<C>          
Face value of discounted
Receivables	$51,768,999	$21,931,395	

Face value of originated
and non-discounted
Receivables	10,560,249	6,473,183

Unrealized discounts,
net of unamortized
acquisition costs	(2,614,937)	(1,337,365)

Allowance for losses	(765,130)	(250,572)

Accrued interest
receivable	1,168,038	466,350
	-----------	-----------
Carrying value	$60,117,219	$27,282,991
	===========	===========
</TABLE>

	As of September 30, 1995, approximately 82% of the Consolidated 
Group's investments in Receivables are collateralized by first lien 
positions on real estate and 18% in second lien positions.  The 
Receivables are collateralized by residential, business and 
commercial properties with residential collateral representing 
approximately 83% of such investments as of September 30, 1995.  The 
Receivables are primarily generated by private individuals or 
businesses and are therefore not government insured loans.

	The Consolidated Group's Receivable investments in real estate 
loans at September 30, 1995 were collateralized by properties 
located throughout the United States with not more than 3% (by 
dollar amount) in any single state except as follows:

	Arizona . . . . . .	 9%
	California  . . . .	11%
	Oregon  . . . . . .	 7%
	Texas . . . . . . .	13%
	Washington  . . . .	12%
	Florida . . . . . .	 5%
	Georgia . . . . . .	 3%
	New Mexico. . . . .	 5%
	


<PAGE>
	SUMMIT SECURITIES, INC.
and subsidiaries
	RECEIVABLES COLLATERALIZED BY REAL ESTATE
	September 30, 1995
<TABLE>
<CAPTION>

Less than 1% of the contracts are subject to variable interest rates.  Interest rates range 
from 0% to 20% with rates principally (87% of face value) within the range of 7% to 12%.  The 
following table segregates the Consolidated Group's Receivable portfolio by type, size and 
lien position.

	Number		Carrying	Delinquent 	Number of  	
	of	Interest	Amount of	Principal	Delinquent
Description	Receivables	Rates	Receivables	Amount	Receivables
	----------	--------	--------	-----------	----------
RESIDENTIAL		Principally
<S>	<C>  	<C>     <C>	<C>          	<C>         	<C>  
First Mortgage > $75,000	103	7%-12%	$10,750,067	$602,699	5
First Mortgage > $40,000	268	7%-12%	14,265,052	797,198	14
First Mortgage < $40,000	924	7%-12%	18,514,619	750,304	46
Second or Lower> $75,000	13	9%-12%	1,358,974	--	--
Second or Lower> $40,000	38	8%-12%	2,022,634	226,881	4
Second or Lower< $40,000	236	8%-11%	5,074,103	49,146	3

COMMERCIAL
First Mortgage > $75,000	24	9%-11%	2,757,580	--	--
First Mortgage > $40,000	17	8%-11%	975,626	--	--
First Mortgage < $40,000	35	8%-11%	739,072	16,855	2
Second or Lower> $75,000	8	9%-11%	1,087,947	--	--
Second or Lower> $40,000	9	9%-11%	537,240	--	--
Second or Lower< $40,000	15	9%-11%	383,437	--	--

FARM, LAND AND OTHER
First Mortgage > $75,000	7	10%-12%	1,395,643	--	--
First Mortgage > $40,000	13	8%-11%	648,812	--	--
First Mortgage < $40,000	65	9%-11%	1,111,652	14,526	1
Second or Lower> $75,000	1	0%	217,391	217,391	1
Second or Lower> $40,000	4	5%-12%	223,881	--	--
Second or Lower< $40,000	14	8%-10	265,518	--	--
Unrealized discounts, net
of unamortized acquisition
costs, on Receivables
purchased at a discount			(2,614,937)

Accrued Interest Receivable			1,168,038

Allowance for Losses			(765,130)
					___________	___________
TOTAL			$ 60,117,219	$ 2,675,000
					============	===========

<FN>
The principal amount of Receivables subject to delinquent principal or interest is defined 
as being in arrears for more than three months. 
</TABLE> 

<TABLE>
<CAPTION>

The contractual maturities of the aggregate amounts of Receivables (face amount) are as 
follows:

	Residential	Commercial	Farm, Land, Other	Total
	Principal	Principal	Principal	Principal
	--------	-------	--------	---------
<S>	<C>        	<C>        	<C>        	<C>         
October 1995 - September 1998	$ 6,935,045	$  1,524,281	$  1,494,409	$ 9,953,735
October 1998 - September 2000	5,091,289	1,210,602	434,447	6,736,338
October 2000 - September 2002	3,895,987	680,842	270,919	4,847,748
October 2002 - September 2005	6,444,955	731,814	440,803	7,617,572
October 2005 - September 2010	10,504,342	1,490,854	939,390	12,934,586
October 2010 - September 2015	6,142,677	192,069	123,111	6,457,857
October 2015 - Thereafter	12,971,154	650,440	159,818	13,781,412
	----------	----------	----------	----------
	$51,985,449	$6,480,902	$3,862,897	$62,329,248
	===========	==========	==========	==========	
</TABLE> 


	The Consolidated Group held 1,794 Receivables collateralized by 
real estate, as of September 30, 1995.  The average stated interest 
rate (weighted by principal balances) on these Receivables on that 
date was approximately 9.3%.  See Note 2 to Consolidated Financial 
Statements.

Delinquency Experience & Collection Procedures

	The principal amount of Receivables collateralized by real 
estate, held by the Consolidated Group (as a percentage of the total 
outstanding principal amount of such Receivables) which was in 
arrears for more than ninety days at September 30, 1995 was 4.3% 
compared to 3.8% and 8.0% at September 30, 1994 and 1993, 
respectively. The increase in 1995 is attributable to the increased 
investment in this type of Receivable particularly in conjunction 
with the acquisition of Old Standard. The decrease in 1994 is 
attributable to the sale of the timeshare receivables to 
Metropolitan and improved collection efforts.  Because Receivables 
purchased by the Consolidated Group are typically not of the same 
quality as mortgages that are originated for sale to agencies such 
as the Federal National Mortgage Association (Fannie Mae), higher 
delinquency rates are expected.  However, because these Receivables 
are purchased at a discount, the aggregate loss to the Consolidated 
Group on sales after repossession are generally lower than might 
otherwise be expected given these higher delinquency rates.

	Metropolitan provides Receivable collection services for Summit 
and Old Standard, pursuant to the following guidelines.  When a 
Receivable becomes delinquent, the payor is initially contacted by 
letter approximately seven days after the delinquency date.  If the 
delinquency is not cured, the payor is contacted by telephone 
(generally on or about the 17th day following the payment due date). 
 If the default is still not cured (generally within three to six 
days after the initial call), then additional collection activity, 
including further written correspondence and further telephone 
contact, is pursued.  If these collection procedures are 
unsuccessful, then the account is referred to a committee who 
analyzes the basis for default, the economics of the situation and 
the potential for environmental risks.  When appropriate, a Phase I 
environmental study is obtained prior to foreclosure.  Based upon 
this analysis, the Receivable is considered for a workout 
arrangement, further collection activity, or foreclosure of any 
property providing collateral for the Receivable.  Collection 
activity may also involve the initiation of legal proceedings 
against the Receivable payor.  Such legal proceedings, when 
necessary are generally initiated within approximately ninety days 
after the initial default.  If accounts are reinstated prior to 
completion of the legal action, then attorney fees, costs, expenses 
and late charges are generally collected from the payor, or added to 
the receivable balance, as a condition of reinstatement.

Allowance for Losses on Real Estate Assets

	The Consolidated Group establishes an allowance for losses on 
Receivables and repossessed real estate based on an evaluation of 
delinquent Receivables and appraisals for real estate held.  During 
1992, an appraisal policy was adopted which requires annual 
appraisals on properties collateralizing delinquent receivables when 
the Receivable balance exceeds a threshold equal to .5% of total 
assets of the respective company.  Biannual appraisals are required 
on all other delinquent Receivables with balances in excess of 
$50,000.  The allowance for losses was 1.2%, 0.9%, and 0.5% of the 
face value of Receivables collateralized by real estate at September 
30, 1995, 1994, and 1993, respectively.

Repossessed Properties

	Summit and Old Standard own various repossessed properties held 
for sale. At September 30, 1995, 16 properties, acquired in 
satisfaction of debt, with a combined carrying amount of 
approximately $836,000 were held.

ANNUITY OPERATIONS

Introduction

	The Consolidated Group raises significant funds through its 
insurance company, Old Standard.  Old Standard was incorporated in 
Idaho in 1990, and acquired by the Consolidated Group on May 31, 
1995. Old Standard had total assets of approximately $54.1 million 
at September 30, 1995.

	Old Standard markets its annuity products through approximately 
100 independent sales representatives under contract.  These 
representatives may also sell insurance products for other 
companies.  Old Standard is licensed as an insurer in Idaho, and has 
applied for licenses in Hawaii, Montana, North Dakota, Oregon and 
Utah.  Additionally, the Company has pending applications for the 
states of Texas and Arizona.  During calendar 1994, the most recent 
year for which statistical information is available, Old Standard's 
annuity market share was 4.17%, and it was ranked 7th as a producer 
of annuities in Idaho.

	Management intends to expand the insurance operations into 
other states as opportunities arise, which may include the 
acquisition of other insurance companies.

	There is no specific regulatory limitation imposed by Idaho on 
the percent of assets which Old Standard may invest in Receivables 
collateralized by real estate.  As of September 30, 1995, 55.1% of 
Old Standard's assets were invested in Receivables collateralized by 
real estate, 21.1% in lotteries, and 0.5% in annuities (issued by 
unrelated insurance companies).  As of September 30, 1995, the 
balance of Old Standard's investments were invested in principally 
investment grade corporate and government securities, but may be 
invested into a variety of other areas as permitted by applicable 
insurance regulations.  See "BUSINESS-REGULATION".

Annuities

	During the last three years, Old Standard has derived 100% of 
its premiums from annuity sales.  Management believes that annuity 
balances have continued to grow due to market acceptance of the 
products (due largely to a competitive rate and a reputation for 
superior service), and changes in tax laws that removed the 
attractiveness of competing tax-advantaged products.

	Old Standard's annuities also qualify for use as either 
Individual Retirement Annuities, Simplified Employee Pensions, 
Qualified Corporate Pension Plans or Tax-Sheltered Annuities for 
teachers and certain other nonprofit organizations' retirement 
plans.  Under these qualified plans, the interest is tax deferred 
and the principal contributions, within the limits specifically 
established by the Internal Revenue Code, are tax deductible during 
the accumulation period.  These annuities are subject to income tax 
only upon actual receipt of proceeds, usually at retirement when an 
individual's tax rate is anticipated to be lower.

	During 1996, the Consolidated Group anticipates matching 
premium flow substantially with the availability of Receivable 
investments, in order to maximize the earnings from the interest 
spread.  Additionally, the premium flow and resulting asset growth 
will be influenced by the ability of Summit to make additional 
capital contributions to Old Standard.

	Flexible and single premium annuities are offered with short, 
intermediate and traditional surrender fee periods.  At September 
30, 1995, deferred policy acquisition costs were approximately 5.6% 
of annuity reserves.  Since surrender charges typically do not 
exceed 5%, increasing termination rates may have an adverse impact 
on the insurance subsidiary's earnings, requiring faster 
amortization of these costs.  Management believes that this 
potentially adverse impact is mitigated by higher annuity interest 
spreads, which are estimated to be approximately 250 basis points in 
future years.  During the four months ended September 30, 1995, 
amortization of deferred policy acquisition costs was $198,000.  The 
calculation has been reviewed by an independent actuary.

	Annuity lapse rates are calculated by dividing cash outflows 
related to benefits and payments by average annuity reserves.  For 
the four months ended September 30, 1995 (the period since Old 
Standard's acquisition by Summit), withdrawals and benefits were 
approximately $1.9 million.  Based upon results for the four months 
ended September 30, 1995, the annualized lapse rate was 
approximately 12%.  Management believes a reasonable estimate for 
future lapse rates to be 10% (including 4% for death and partial 
withdrawal and 6% for basic surrenders and surrenders occurring in 
the year the surrender charge expires).

Reserves

	State law requires that the reserve be sufficient to meet Old 
Standard's future obligations under annuity contracts currently in 
force.  Reserves are recalculated each year to reflect amounts of 
insurance in force, issue ages of new contract holders, duration of 
contracts and variations in contract terms.  Since such reserves are 
based on certain actuarial assumptions, no representation is made 
that the ultimate liability will not exceed these reserves.  Old 
Standard utilizes the services of a consulting actuary to review the 
reserve amount for compliance with applicable statutes.

	The actuarially determined reserve is reported in statutory 
financial statements as required by state insurance regulatory 
authorities.  Accounting principles used to prepare these statutory 
financial statements differ from generally accepted accounting 
principles (GAAP). Annuity reserves amounted to approximately $49.6 
million at September 30, 1995 based on GAAP financial reporting.

Securities Investments

	At September 30, 1995, 100% of the Consolidated Group's 
securities investments were held by Old Standard.  The following 
table outlines the nature and carrying value of securities 
investments held by Old Standard at September 30, 1995:


<TABLE>
<CAPTION>
	Available	Held To	Total	Percent
	For Sale	Maturity
	Portfolio	Portfolio	
	----------	----------	----------	--------
		(Dollars in Thousands)
<S>			<C>     	<C>     	<C>     	<C>   
Total Amount	$     -	$  8,270	$  8,270	100.0%
			=======	========	========	======
Invested In:
	Fixed Income/Taxable	$     -	$  8,270	$  8,270	100.0%
			=======	========	========	======

Taxable:		
	Government Agency	$     -	5,230	5,230	63.2%
	Corporate 	-	3,040	3,040	36.8%
			-------	--------	--------	------
			$     -	$  8,270	$  8,270	100.0%
			=======	========	========	=====
Corporate Bonds:
		AAA	$     -	$  1,032	$  1,032	33.9%
		AA	-	1,003	1,003	33.0%
		A	-	1,005	1,005	33.1%
			-------	--------	--------	------
			$     -	$  3,040	$  3,040	100.0%
			=======	========	========	======


Corporate:
		Finance	$     -	$  2,008	$  2,008	66.1%
		Industrial	-	1,032	1,032	33.9
			-------	--------	--------	------
			$     -	$  3,040	$  3,040	100.0%
			=======	========	========	======
</TABLE>

		Investments of the insurance subsidiary are subject to the 
direction and control of an investment committee appointed by the 
Board of Directors of each insurance subsidiary.  All such 
investments must comply with applicable state insurance laws and 
regulations.  See "BUSINESS-REGULATION".  Investments currently 
include corporate, government agency, and direct government 
obligations.

		Old Standard is authorized to use financial futures instruments 
for the purpose of hedging interest rate risk relative to the 
securities portfolio or potential trading situations.  In both 
cases, the futures transaction is intended to reduce the risk 
associated with price movements for a balance sheet asset.  See 
"MANAGEMENT'S DISCUSSION AND ANALYSIS-Asset/Liability Management".

	In the held to maturity portfolio, gross unrealized losses were 
$198,000 at September 30, 1995.

METHOD OF FINANCING

	The Consolidated Group's continued growth is expected to depend 
on its ability to market its securities and annuities to the public 
and to invest the proceeds in higher-yielding investments.  
Financing needs are intended to be met primarily by the sale of its 
annuities, Certificates and Preferred Stock.  Such funds may be 
supplemented by short-term bank financing and borrowing from 
affiliates.  Old Standard has established secured lines of credit 
through several lending institutions, principally consisting of 
Brokerage Firms.  As of September 30, 1995, there were no borrowings 
outstanding.

	The availability of Receivables offered for investment in the 
national market is believed by management to be adequate to meet the 
needs of the Consolidated Group.



COMPETITION

	Summit's and Old Standard's ability to compete for Receivable 
investments is currently dependent upon Metropolitan.  Metropolitan 
competes with various real estate financing firms, real estate 
brokers, banks and individual investors for the Receivables it 
acquires.  The largest single competitors are subsidiaries of much 
larger companies such as Associates Financial Services Company, 
Inc., a subsidiary of Ford Motor Company, while the largest number 
of competitors are a multitude of individual investors. The primary 
competitive factors are the amounts offered and paid to Receivable 
sellers and the speed with which the processing and funding of the 
transaction can be completed.  Competitive advantages enjoyed by 
Summit and Old Standard include access to Metropolitan's branch 
office system which allows it access to markets throughout the 
country; its ability to purchase long-term Receivables; availability 
of funds; and its in-house capabilities for processing and funding 
transactions.  To the extent other competing Receivable investors 
may develop faster closing times or more flexible investment 
policies, they may experience a competitive advantage.

	Summit's and MIS's securities products face competition for 
investors from other securities issuers many of which are much 
larger, and from other types of financial institutions.

	The life insurance and annuity business is highly competitive. 
 Premium rates, annuity yields and commissions to agents are 
particularly sensitive to competitive forces.  Old Standard's 
management believes that it is in an advantageous position in this 
regard because of its earning capability through investments in 
Receivables compared to that of most other life insurance companies. 
 Old Standard has also been assigned an A.M. Best Co. (Best) rating 
of "B (good)".  Best bases its rating on a number of complex 
financial ratios, the length of time a company has been in business, 
the nature and quality of investments in its portfolio, depth and 
experience of management and various other factors.  Best's ratings 
are supplied primarily for the benefit of policyholders and 
insurance agents.

BROKER DEALER ACTIVITIES

	Metropolitan Investment Securities, Inc. (MIS) is a securities 
broker/dealer, and member of the National Association of Securities 
Dealers.  It markets the securities products of Summit and of 
Metropolitan, Summit's former parent company.  In addition, MIS 
currently markets several families of mutual funds, and it 
anticipates adding additional products offered by unrelated entities 
such as variable annuities.  MIS's sales efforts are currently 
focused in the states of Washington, Oregon, Idaho and Montana.  It 
is licensed in several other Western states and plans to expand its 
sales and marketing efforts into additional states in the near 
future.  After the elimination of transactions conducted among the 
Consolidated Group, MIS contributed an immaterial operating loss to 
the Consolidated Group during the fiscal year ended September 30, 
1995 on revenues of approximately $1.2 million, after intercompany 
eliminations.  See Note 11 to Consolidated Financial Statement.

PROPERTY DEVELOPMENT SERVICES

	Summit Property Development, Inc. provides real estate 
development services for a fee.  Currently its principal client is 
Metropolitan.  Such services may include, but are not limited to the 
following: sales, marketing, market analysis, architectural 
services, design services, subdividing properties, and coordination 
with regulatory groups to obtain the approvals which are necessary 
to develop a particular property.  Summit Property Development does 
not own any real estate itself.  Summit Property Development, Inc. 
produced operating income for the Consolidated Group during the 
fiscal year ended September 30, 1995 of approximately $118,000 on 
revenues of approximately $1,250,000. See Note 11 to Consolidated 
Financial Statement.

REGULATION

	Old Standard and Summit are subject to the Insurance Holding 
Company Act as administered by the Office of the State Insurance 
Commissioner of the State of Idaho.  The act regulates transactions 
between insurance companies and their affiliates.  It requires that 
Summit provide prior notification to the Idaho Insurance 
Commissioner of certain transactions between the insurance company 
and affiliates.  In certain instances, the Idaho Insurance 
Commissioner's approval is required.  

	The purchase of Arizona Life  required approval from the Office 
of the State Insurance Commissioner of the State of Arizona, and 
each state in which Arizona Life is authorized to do business.  
Approval from the State of Arizona was obtained December 28, 1995.  
As of that date, formal approval from the other states wherein 
Arizona Life is licensed was pending. Arizona Life and Old Standard 
are subject to the Insurance Holding Company Act as administered in 
Arizona.  The Act regulates transactions between insurance companies 
and their affiliates.  It requires that Old Standard provide 
notification to the Insurance Commissioner of certain transactions 
between the insurance company and affiliates.  In certain instances, 
the Commissioner's approval is required before a transaction with an 
affiliate can be consummated.

	Old Standard and Arizona Life are subject to extensive 
regulation and supervision by the Office of the State Insurance 
Commissioner of their states of domicile, which are Idaho and 
Arizona, respectively.  To a lesser extent they are also subject to 
regulation by each of the other states in which they operate. These 
regulations are directed toward supervision of such things as 
granting and revoking licenses to transact business on both the 
insurance company and agency levels, approving policy forms, 
prescribing the nature and amount of permitted investments, 
establishing solvency standards and conducting extensive periodic 
examinations of insurance company records.  Such regulation is 
intended to protect annuity contract and policy owners, rather than 
investors in an insurance company.  Old Standard and Arizona Life 
are required to file detailed annual and quarterly reports with 
their respective states of domicile.

	All states in which the insurance subsidiaries operate have 
laws requiring solvent life insurance companies to pay assessments 
to protect the interests of policyholders of insolvent life 
insurance companies.  Assessments are levied on all member insurers 
in each state based on a proportionate share of premiums written by 
member insurers in the lines of business in which the insolvent 
insurer engaged.  A portion of these assessments can be offset 
against the payment of future premium taxes.  However, future 
changes in state laws could decrease the amount available for 
offset.  The economy and other factors have caused failures of 
substantially larger companies which could result in substantially 
increased future assessments.

	The net amounts expensed by Old Standard for guaranty fund 
assessments and charged to operations for the four month period 
ended September 30, 1995 was $25,000.  This estimate was based on 
updated information provided by the National Organization of Life 
and Health Insurance Guaranty Associations regarding insolvencies 
occurring during 1990 through 1992.  Management does not believe 
that the amount of future assessments associated with known 
insolvencies after 1992 will be material to its financial condition 
or results of operations.  These estimates are subject to future 
revisions based upon the ultimate resolution of the insolvencies and 
resultant losses.  Management cannot reasonably estimate the 
additional effects, if any, upon its future assessments pending the 
resolution of the above described insolvencies. The amount of 
guaranty fund assessment has been recorded net of a 7% discount rate 
applied to the estimated payment term of approximately seven years.

	Old Standard is subject to regulatory restrictions on its 
ability to pay dividends.  Such restrictions affect Summit's ability 
to receive dividends from Old Standard.  The unrestricted statutory 
surplus of Old Standard totaled approximately $249,000 as of 
September 30, 1995.

	For statutory purposes, Old Standard's capital and surplus and 
its ratio of capital and surplus to admitted assets were as follows 
as of the dates indicated:
<TABLE>
<CAPTION>
	As of	As of December 31,
	September 30, 1995	1994	1993	1992
	------------------	----	----	----
	(Dollars in Thousands)
	<S>	<C>  	<C>  	<C>  	<C>  
	
	Capital and Surplus	$2,249	$2,431	$2,069	$2,078
	Ratio of Capital and
	Surplus to Admitted
	Assets	4.2%	5.4%	5.0%	6.5%
</TABLE>
	Although the State of Idaho requires only $2.0 million in 
capital and surplus to conduct insurance business, Old Standard has 
attempted to maintain a capital and surplus ratio of at least 5% of 
total admitted assets which management considers adequate for 
regulatory and rating purposes.

	Idaho has enacted the Risk Based Capital Model law which 
requires an insurance company to maintain minimum amounts of capital 
and surplus based on complex calculations of risk factors that 
encompass the invested assets and business activities.  The 
insurance subsidiary's capital and surplus levels exceed the 
calculated minimum requirements.

	MIS is subject to extensive regulation and supervision by the 
National Association of Securities Dealers and the Securities and 
Exchange Commission.  These regulations include licensing 
requirements, record keeping requirements, net capital requirements, 
supervision requirements and sales practice standards.



<PAGE>
MANAGEMENT

Directors and Executive Officers
(As of December 31, 1995)

	Name	Age	Position

Tom Turner	45	President/Director
Philip Sandifur	24	Vice President/Director
Greg Gordon	42	Secretary/Treasurer/Director
Ernest Jurdana	51	Principal Accounting Officer
Robert Potter	68	Director

	Tom Turner was elected President on October 31, 1995. Prior to 
serving as President, he had served as Secretary/Treasurer since 
September 28, 1994.  He has been an employee of Metropolitan since 
1985, as a financial analyst. From 1983-1985, Mr. Turner was 
employed by Olsten Temporary Services.  Prior to 1983, Mr. Turner 
was self-employed, principally doing business in the real estate 
industry.

	Philip Sandifur is the son of C. Paul Sandifur Jr., who is the 
sole shareholder of National Summit Corp., the parent company of 
Summit and also the controlling shareholder of Metropolitan.  Philip 
graduated in 1993 from Santa Clara University receiving a BA in 
Business.  He is not active in the day-to-day operations of Summit 
except to the extent necessary to carry out his duties as Vice 
President and Director.  Philip Sandifur is principally active as 
the President of Summit Trading Company, a wholly-owned subsidiary 
of Summit's parent company, National Summit Corp.

	Greg Gordon was elected Secretary/Treasurer on October 31, 
1995.  He joined Metropolitan in April of 1989 and started the 
company's demography department.  From 1985 to 1989, he was employed 
as the Northeastern US division, Market Analyst for Mortgage 
Guarantee Insurance Corporation.  From 1984 to 1985, he was employed 
as a limited partnership underwriter with Reliance Insurance 
Company.  

	Ernest Jurdana joined Metropolitan as its Principal Accounting 
Officer in June of 1994.  Since that date, he has also been the 
Principal Accounting Officer for Summit.  From 1990 to June 1994, he 
was Senior Vice President and Chief Financial Officer for 
Continental Savings of America.  Prior to that time, he was Senior 
Vice President for Financial Management with Washington Mutual 
Savings Bank where he served in various accounting and financial 
positions from 1966.  He received a MBA designation from City 
University, and was licensed as a Certified Public Accountant in 
1986.

	Robert Potter was elected a Director of Summit on March 14, 
1995. He is an outside director, not active in the day-to-day 
business of Metropolitan or Summit.  From 1987 to present, Mr. 
Potter has served as President of Jobs Plus, Inc., a non-profit 
corporation formed to diversify and broaden the economic base of 
Kootenai County Idaho.  Prior to 1987, Mr. Potter was employed for 
approximately 6 months as Chief Operating Officer of Incomnet Inc., 
and prior to that he worked for approximately 30 years with AT&T.

	The directors of Summit are elected for one-year terms at 
annual shareholder meetings.  The officers of Summit serve at the 
direction of the Board of Directors.

	Summit's officers and directors continue to hold their 
respective positions with Metropolitan and do not anticipate that 
their responsibilities with Summit will involve a significant amount 
of time. They will, however, devote such time to the business and 
affairs of Summit as may be necessary for the proper discharge of 
their duties.

	EXECUTIVE COMPENSATION

	The officers and directors do not receive any compensation for 
services rendered on behalf of Summit, but they are entitled to 
reimbursement for any expenses incurred in the performance of such 
services.  Such expenses include only items such as travel expense 
incurred for attendance at corporate meetings or other business.  No 
such expenses have been incurred to date.

	INDEMNIFICATION

	Summit's Articles of Incorporation provide for indemnification 
of Summit's directors, officers and employees for expenses and other 
amounts reasonably required to be paid in connection with any civil 
or criminal proceedings brought against such persons by reason of 
their service of or position with Summit unless it is adjudged in 
such proceedings that the person or persons are liable due to 
willful malfeasance, bad faith, gross negligence or reckless 
disregard of his duties in the conduct of his office.  Such right of 
indemnification is not exclusive of any other rights that may be 
provided by contract of other agreement or provision of law.

	Insofar as indemnification for liabilities arising under the 
Securities Act of 1933 (the "Act")may be permitted to Summit's 
officers, directors or controlling persons pursuant to the foregoing 
provisions, Summit has been informed that in the opinion of the 
Securities and Exchange Commission such indemnification is against 
public policy as expressed in the Act and is therefore 
unenforceable.


<PAGE>
	PRINCIPAL SHAREHOLDERS

	The following table sets forth information with respect to the 
beneficial owners of more than five percent of Summit's voting 
common stock as of September 30, 1995.
<TABLE>
<CAPTION>
	SHARES OF
NAME AND ADDRESS	COMMON STOCK	% OF CLASS
<S>	<C>      	<C>   
National Summit Corp.	10,000	100%
W. 929 Sprague Ave.,
Spokane, Washington
</TABLE>

CERTAIN TRANSACTIONS

	Summit was originally organized as a wholly-owned subsidiary of 
Metropolitan.  On September 9, 1994, the controlling interest in 
Summit was acquired by National Summit Corp., a Delaware corporation 
which is wholly-owned by C. Paul Sandifur, Jr.  The change in 
control was made pursuant to a reorganization wherein Summit 
redeemed all the common shares held by its former parent company, 
Metropolitan, which consisted of 100% of the outstanding common 
stock of Summit.  Contemporaneously with this redemption, Summit 
issued 10,000 shares of common stock to National Summit Corp., a 
Delaware Corporation, for $100,000.  In addition, various investors 
in Metropolitan's common and preferred stock, including members of 
Mr. Sandifur's immediate family acquired 30,224 shares of Summit's 
Preferred Stock Series S-1 for $100 per share in exchange for 
preferred and common shares of Metropolitan with a value of 
approximately $3 million dollars.  Following this sale, Metropolitan 
has continued to provide, for a fee, principally all the management 
services to Summit.  See "BUSINESS-RECEIVABLE INVESTMENTS".

	Mr. Sandifur holds effective control of Metropolitan.  Prior to 
the sale, Mr. Sandifur held effective control of Summit through 
Metropolitan.  Following the sale, Mr. Sandifur continues to control 
Summit through National Summit Corp.

	Prior to the sale, the officers and directors of Summit, were 
also officers or directors of Metropolitan and/or its affiliates.  
Contemporaneously with the sale, the officers and directors resigned 
and new officers and directors were elected. The current officers 
and all but one of the directors are employees of Metropolitan.  No 
officer or director of Summit is an officer or director of 
Metropolitan.

	Summit considered the sale to be in its best interest due to 
regulatory considerations and other business considerations.  The 
regulatory considerations include the impact of regulations imposed 
upon Metropolitan by its state of domicile.  In the opinion of 
management, these regulations penalized Summit in its prior 
corporate structure.  

	On January 31, 1995, Summit acquired  MIS from Metropolitan.  
The purchase price was $288,950 paid in cash.  MIS is a limited-
purpose broker/dealer and the exclusive broker/dealer for the 
securities sold by Metropolitan and Summit.  This sale has not 
materially affected the business of MIS.  Also see "CERTAIN 
INVESTMENT CONSIDERATIONS-RISK FACTORS" & "BUSINESS-BROKER DEALER 
ACTIVITIES".  Also on January 31, 1995, Metropolitan discontinued 
its property development division, which consisted of a group of 
employees experienced in real estate development.  On the same date, 
Summit commenced the operation of a property development subsidiary, 
Summit Property Development Inc., employing those same individuals 
who had previously been employed by Metropolitan.  Summit Property 
Development has entered into an agreement with Metropolitan to 
provide property development services to Metropolitan.  Also see 
"CERTAIN INVESTMENT CONSIDERATIONS-RISK FACTORS" & "BUSINESS-ANNUITY 
OPERATIONS".

	Through a wholly-owned subsidiary, Summit Group Holding 
Company, Summit acquired Old Standard on May 31, 1995 from 
Metropolitan.  The purchase price was $2.722 million, plus 20% of 
Old Standard's statutory earnings for the subsequent three years. 
The purchase price was established based upon an actuarial valuation 
of Old Standard.

	Summit and Old Standard obtain substantially all of their 
Receivable management and servicing support from Metropolitan 
through a Management, Receivable Acquisition and Servicing 
Agreement.  It is anticipated that Arizona Life will execute a 
similar Agreement during the first quarter of calendar 1996.  Also 
see "BUSINESS-RECEIVABLE INVESTMENTS" & "CERTAIN INVESTMENT 
CONSIDERATIONS-RISK FACTORS" & Note 11 to Consolidated Financial 
Statements.  Management believes that such Agreements are on terms 
at least as favorable as could be obtained from non-affiliated 
parties.

	In addition, transactions between Metropolitan and companies 
within the Consolidated Group take place in the normal course of 
business.  Such transactions include rental of office space, 
provision of administrative and data processing support, accounting 
and legal services.  See Note 11 to Financial Statements.  

	Summit has entered into Selling Agreements with MIS to provide 
for the sale of the Certificates and Preferred Stock pursuant to 
which MIS will be paid commissions up to a maximum of 6% of the 
investment amount in each transaction.  During the fiscal year ended 
September 30, 1995, Summit paid or accrued commissions to MIS in the 
amount of $297,106 upon the sale of $8,585,470 of certificates and 
commissions of $19,557 upon the sale of $390,280 of preferred stock. 
 MIS also maintains, on behalf of Summit, certain investor files and 
information pertaining to investments in Summit's Certificates.

	Summit Property Development has entered into an Agreement with 
Metropolitan to provide property development services to 
Metropolitan for a fee.  See "BUSINESS-PROPERTY DEVELOPMENT 
SERVICES".



	PART I (cont.)

Item 2.	Properties

	See Item 1.

Item 3.	Legal Proceedings.

	There are no material legal proceedings or actions pending or 
threatened against Summit Securities, Inc., or to which its property 
is subject.

Item 4.	Submission of Matters to a vote of Security Holders.

	None

				Part II

Item 5.	Market for the Registrant's Common Equity and Related
		Stockholder Matters.

	(a) There is no market for the registrant's common stock

	(b) There was one Common Stockholder at September 30, 1995

	(c) See "Item 6. Selected Financial Data."

Item 6.	Selected Financial Data

<PAGE>	SUMMIT SECURITIES, INC.
	SELECTED CONSOLIDATED FINANCIAL DATA
<TABLE>
<CAPTION>
	The consolidated financial data shown below as of September 30, 
1995 and 1994 and for the years ended September 30, 1995, 1994 and 
1993(other than the ratio of earnings to fixed charges and preferred 
stock dividends) have been derived from, and should be read in 
conjunction with, Summit's consolidated financial statements, 
related notes, and Management's Discussion and Analysis of Financial 
Condition and Results of Operations appearing elsewhere herein. The 
financial data shown as of September 30, 1993, 1992 and 1991 and for 
the year ended September 30, 1992 and 1991 have been derived from 
audited financial statements not included herein.  The consolidated 
financial statements as of and for the years ended September 30, 
1995, 1994 and 1993 have been audited by Coopers & Lybrand L.L.P.  
The consolidated financial statements as of and for the years ended 
September 30, 1992, and 1991 have been audited by BDO Seidman. 

					
					
	Year Ended  	Year Ended	Year Ended	Year Ended	Year Ended
	September 30,	September 30,	September 30,	September 
30,	September, 30
						
	1995	1994	1993	1992	1991
<S>	<C>          	<C>         	<C>        	<C>       
   	<C>         
INCOME STATEMENT 
DATA:

Revenues	$ 9,576,615	$3,395,252	$ 2,815,624	$ 2,435,843	$1,026,405
			===========	==========	==========	==========	==========
Income before
extraordinary item	$   587,559	$  264,879	$   283,107	$   611,595	$  238,205
Extraordinary item (1)			--	--	--	49,772	--
			-----------	----------	----------	----------	----------
Net Income			587,559	264,879	   283,107	   661,367	    238,205
Preferred Stock Dividends			(309,061)	(2,930)	--	--	--
		-----------		----------	----------	----------	----------
Income Applicable to Common 
Stockholders		  $   278,498		$  261,949	$   283,107	$   661,367	$  238,205
			===========	==========	==========	==========	==========

Per Common Share:
Income before
extraordinary
item		$     27.85	$    13.47	$     14.15	$     30.58	$    11.91
Extraordinary item (1)			--	--	-- 		2.49	--
		-----------		----------	----------	----------	----------
Income applicable to
common stockholders	$     27.85	$    13.47	$     14.15	$     33.07	$    11.91
			===========	==========	==========	==========	==========
Weighted average number
of common shares
outstanding			10,000	19,445	20,000	20,000	20,000
		===========	==========	==========	==========	==========
Ratio of Earnings
to Fixed Charges and
Preferred Stock Dividends			1.11	1.16	1.24	1.53		1.37

BALANCE SHEET DATA:
Due from/(to) affiliated
companies, net	$ 1,960,104	$   267,735	$ 1,710,743	$  (400,365)	$(5,528,617)
Total Assets	$96,346,572	$35,101,988	$25,441,605	$17,696,628	$16,718,823
Debt Securities
and Other
Debt Payable		$38,650,532	$31,212,718	$21,982,078	$14,289,648	$ 8,451,106
Stockholders' Equity		$ 3,907,067	$3,321,230	$3,188,024	$2,904,917	$2,243,550
<FN>
(1) Benefit from utilization of net operating loss carryforwards.
</TABLE>


Item 7.	Management's Discussion and Analysis of Financial Condition
		and Results of Operations

<PAGE>

	Management's Discussion and Analysis of Financial
	Condition and Results of Operations
	For the Three Fiscal Years Ended September 30, 1995

Introduction

	Summit's operations for the fiscal year ended September 30, 1995 
benefited from the acquisition of and start-up of several new 
operating subsidiaries.  MIS was acquired from Summit's former parent 
company in January, 1995.  At the same time, Summit established a 
property development subsidiary.  Summit acquired Old Standard from 
Summit's former parent company on May 31, 1995.  Of these 
transactions, the largest was the acquisition of Old Standard. As of 
September 30, 1995, Old Standard had total assets of approximately 
$54.1 million.  See Note 1 to the Financial Statements.  During the 
fiscal year ended September 30, 1995, MIS, Summit Property Development 
and Old Standard contributed gross revenues of $1.2 million, $1.3 
million, and $1.4 million, respectively, to the Consolidated Group.  
For the same period, Summit Property Development and Old Standard 
contributed operating income of approximately $118,000 and $86,000 
,respectively, to the Consolidated Group.  The operating income of MIS 
was not significant after intercompany eliminations.

Results of Operations

	Revenues of the Consolidated Group increased to approximately 
$9.6 million in 1995 from approximately $3.4 million in 1994, and 
approximately $2.8 million in 1993.  The growth in revenues from 1994 
to 1995 is attributable to an increase in investment earnings on 
outstanding Receivables due largely to the acquisition of Old Standard 
along with gains realized on the sale of a portion of the Receivable 
portfolio.  Additionally in 1995, the Consolidated Group realized 
approximately $2.6 million in fee, commission and service revenues 
from its newly acquired and newly formed subsidiaries.  The growth in 
revenues from 1993 to 1994 is attributable primarily to increased 
investment earnings on additional outstanding Receivables along with 
gains realized on the sale of a portion of the Receivable portfolio.  
These increases were offset partially, in 1994, by a reduction in 
revenues associated with the sale of repossessed property. The 
Consolidated Group has increased its investment in Receivables, 
collateralized by real estate, to approximately $60.1 million at 
September 30, 1995 from $27.3 million at September 30, 1994, and $19.5 
million at September 30, 1993.  Additionally, the Consolidated Group 
has begun investing in annuities and lottery prizes with a total 
outstanding investment as of September 30, 1995 of $ 16.9 million.

	Net income before preferred stock dividends for the fiscal year 
ended September 30, 1995 was approximately $588,000 compared to 
$265,000 in 1994 and $283,000 in 1993.  The increase from 1994 to 1995 
was primarily the result of increased gains on the sale of 
Receivables, an increase in the margin between interest sensitive 
income and interest sensitive expense caused largely by the 
acquisition of Old Standard, and increased fees, commissions and 
service revenues from MIS and Summit Property Development, Inc. which 
were only partially offset by increases in salaries and benefits, 
commissions and other operating expenses.  The relatively small 
decrease in net income from 1993 to 1994 was the result of Summit 
being able to realize gains on the sale of Receivables, improve other 
income sources and reduce operating expenses, all of which were 
necessary as Summit experienced a reduced margin between interest 
sensitive income and interest sensitive expense along with an increase 
in the provision for losses on real estate assets.

	Since the date of its incorporation through approximately the end 
of calendar year 1993 and again in 1995, Summit generally benefited 
from a declining interest rate environment with lower money costs and 
relatively consistent yields on Receivables.  In addition, a declining 
rate environment positively impacted earnings by increasing the value 
of the portfolio of predominantly fixed rate Receivables.  This was 
evident in 1995 and 1994 as Summit was able to realize gains of 
$512,500 and $171,756, respectively, from the sale of Receivables.  
Higher levels of prepayments in the Receivable portfolio were 
experienced during the years 1992 through 1995, allowing Summit to 
recognize unamortized discounts on Receivables at an accelerated rate. 
 During 1994 and continuing in 1995, Metropolitan, Summit's former 
parent and the primary supplier of Receivables, began charging the 
Consolidated Group underwriting fees associated with Receivable 
acquisitions.  The charging of the underwriting fee results in a 
somewhat lower yield over the life of the newly acquired Receivables. 
 However, management believes the yield to be favorable in comparison 
to other investment opportunities.  See "BUSINESS-Investment in 
Receivables".

	Maintaining efficient collection efforts and minimizing 
delinquencies in the Consolidated Group's Receivable portfolio are 
ongoing management goals.  During 1995, the Consolidated Group 
realized a gain on the sale of repossessed real estate of 
approximately $6,300 compared to a gain of $12,300 in 1994 and a loss 
of $18,400 in 1993.  In recognition of the increased size of the 
Consolidated Group's Receivable and real estate portfolios, 
principally associated with the purchase of Old Standard, the 
Consolidated Group has increased its provision for losses on assets 
collateralized by real estate. Provisions for losses were 
approximately $445,000, $155,000, and $51,000 for 1995, 1994, and 
1993, respectively.  At September 30, 1995, the Consolidated Group had 
an allowance for losses on  real estate assets of $765,000 compared to 
$251,000, and $97,000  at September 30, 1994 and 1993, respectively.  
The increase in 1995 was in part attributable to the acquisition of 
Old Standard.  At September 30, 1995, 1994 and 1993, the allowance for 
losses represented approximately 1.2%, 0.9% and 0.5%, respectively, of 
the face value of Receivables collateralized by real estate.

	In April 1992, the Accounting Standards Division of the American 
Institute of Certified Public Accountants issued Statement of Position 
(SOP) No. 92-3, "Accounting for Foreclosed Assets," which provides 
guidance on determining the accounting treatment for foreclosed 
assets. SOP 92-3 requires that foreclosed assets be carried at the 
lower of (a) fair value minus estimated cost to sell, or (b) cost. 
Summit applied the provisions of SOP 92-3 effective October 1, 1992.  
The initial charge for its application  was approximately $10,000, 
before the application of related income taxes, and is included in 
operations for fiscal 1993.

Interest Sensitive Income and Expense

	Management continually monitors the interest sensitive income and 
expense of the Consolidated Group.  Interest sensitive expense is 
predominantly related to annuity benefits and the interest costs of 
Certificates, while interest sensitive income includes interest and 
earned discounts on Receivables, dividends and other investment 
income.

	The excess of interest sensitive income over interest sensitive 
expense was approximately $1,075,000 in 1995, $543,000 in 1994, and 
$696,000 in 1993.  The increase from 1994 to 1995 of $532,000 was 
attributable to the following: (1) increased investment in the 
Receivable portfolio largely due to the acquisition of Old Standard; 
(2) a lower cost of funds, influenced in part by the acquisition of 
Old Standard, and; (3) additional dividend income from preferred stock 
of Metropolitan held by Summit.  The decrease from 1993 to 1994 of 
approximately  $153,000 was attributable to several factors including: 
(1) the charging of underwriting fees by Metropolitan which reduced 
1994 interest income by approximately $60,000; (2) the sale of $4.5 
million of high yielding, time-share Receivables to Metropolitan in 
February 1994; (3) lower yields on acquired Receivables; and (4) the 
accumulation of cash, which was invested in low yielding overnight 
investments, which was utilized for the September 1994 payment of $3.6 
million to Metropolitan to redeem its outstanding common stock.  See 
Note 11 to the Consolidated Financial Statements.

Fees, Commissions, Service and Other Income

	Other income grew to approximately $2,580,000 in 1995 from 
$60,700 in 1994, and $42,700 in 1993. In 1995, the significant 
increase in other income was the result of commissions earned by the 
Consolidated Group's broker/dealer subsidiary, MIS, of approximately 
$1.12 million and approximately $1.25 million of service fees earned 
by its property development subsidiary, offset, in part, from the 
increase in other expenses.  Other income in 1993 and 1994 resulted 
predominantly from miscellaneous fees and charges related to 
Receivables.

Other Expenses

	Operating expenses increased significantly in 1995 to $2,900,000 
from relatively stable amounts of $231,400 for 1994 and $244,600 for 
1993.  The 1995 increase in operating expense was principally the 
result of the acquisition and establishment of new subsidiaries, 
including the insurance, broker/dealer and the property development 
subsidiaries. The 1995 increase in operating expenses encompassed the 
addition of employees for each of the new subsidiaries, commissions 
paid to agents as a result of the insurance company acquisition, and 
occupancy and administrative expenses associated with the various 
subsidiaries.  See "BUSINESS-Recent Developments-Subsidiary 
Acquisitions".

Provision for Losses on Real Estate Assets 

	The provision for losses on Receivables and repossessed real 
estate has increased as the size of the portfolio of Receivables and 
repossessed real estate has grown to provide for what Management 
believes are adequate allowances for anticipated losses.  The 
following table summarizes the Consolidated Group's allowance for 
losses on Receivables and repossessed real estate:



<TABLE>
<CAPTION>
		1995		1994	1993	
	<S>	<C>         	<C>       	<C>       
	Beginning Balance	$250,572	$ 96,654	$59,244
	Increase due to:
	Acquisition of
	life insurance
	affiliate	310,957
	Provision 	103,950	103,000	15,000
	
	Charge-Offs	(34,276)	(49,921)	(7,894)
	Recoveries	133,927	100,839	30,304
			--------	--------	--------
	Ending Balance	$765,130	$250,572	$96,654
			=======	=======	=======
 <FN>
These allowances are in addition to unamortized acquisition discounts 
of approximately $2.6 million at September 30, 1995, $1.3 million at 
September 30, 1994, and $1.1 million at September 30, 1993.
</TABLE>

Gain/Loss on Other Real Estate Owned

	During 1995, the Consolidated Group experienced a gain on the 
sale of real estate of approximately $6,300.  At the end of fiscal 
1995, the Consolidated Group had approximately $836,000 in real estate 
held for sale, less than 1% of total assets.

Effect of Inflation

	During the three year period ended September 30, 1995, inflation 
has had a generally positive impact on the Consolidated Group's 
operations.  This impact has primarily been indirect in that the level 
of inflation tends to be reflected in the current level of interest 
rates which impact interest returns and costs on the Consolidated 
Group's assets and liabilities.  See "BUSINESS-Interest Sensitive 
Income and Expense".  However, both interest rate levels in general 
and the cost of the Consolidated Group's funds and the return on it 
investments are influenced by additional factors such as the level of 
economic activity and competitive or strategic product pricing issues. 
 The net effect of the combined factors on the earnings of the 
Consolidated Group has been a slight improvement over the three year 
period in the positive spread between the rate of return on interest 
earning assets less the cost of interest paying liabilities.  
Inflation has not had a material effect on the Consolidated Group's 
operating expenses.  Increases in operating expenses have resulted 
principally from increased product volumes or other business 
considerations including the acquisition of additional companies and 
the start-up of new businesses.

	Revenues from real estate sold are influenced in part by 
inflation, as, historically, real estate values have fluctuated with 
the rate of inflation.  However, the effect of inflation in this 
regard has not had a material effect on the operations of the 
Consolidated Group nor is it expected to have a material effect in the 
near future.
 
Asset/Liability Management

	As most of the Consolidated Group's assets and liabilities are 
financial in nature, the Consolidated Group is subject to interest 
rate risk.  In fiscal 1996, more of the Consolidated Group's financial 
liabilities (primarily annuities and certificates) will reprice or 
mature more quickly than its financial assets (primarily Receivables 
and fixed income investments). In a decreasing interest rate 
environment, this factor will tend to increase earnings as liabilities 
will generally be repriced at lower rates of interest while financial 
assets maintain their existing rates of interest.  This effect is 
mitigated to the extent that receivables are reduced when debtors 
increase their level of early repayments to the Consolidated Group in 
a decreasing rate environment.

	The Consolidated Group may use financial futures instruments for 
the purpose of hedging interest rate risk relative to investments in 
the securities portfolio or potential trading situations. In both 
cases, the futures transaction is intended to reduce the risk 
associated with price movements for a balance sheet asset.  
Additionally, the  Consolidated Group may sell securities "short" (the 
sale of securities which are not currently in the portfolio and 
therefore must be purchased to close out the sale agreement) as 
another means of hedging interest rate risk, or take a trading 
position in an attempt to benefit from an anticipated movement in the 
financial markets.  The  Consolidated Group had not employed any such 
strategies prior to or through September 30, 1995.  Also See 
"BUSINESS-Securities Investments".

	During fiscal 1996, approximately $15.0 million of interest 
sensitive assets (cash, Receivables and fixed income investments) are 
expected to reprice or mature.  Interest sensitive liabilities, 
including annuity reserves of approximately $49.6 million reprice 
during fiscal 1996, and approximately $10.2 million of  Certificates 
and other debt will mature during fiscal 1996.  These estimates result 
in repricing of interest sensitive liabilities in excess of interest 
sensitive assets of approximately $44.8 million, or a ratio of 
interest sensitive liabilities to interest sensitive assets of 
approximately 400%.

New Accounting Rules

	In the fourth quarter of fiscal 1993, the Consolidated Group 
adopted the provisions of Statement of Financial Accounting Standards 
No. 109, "Accounting for Income Taxes" (SFAS No. 109), retroactive to 
October 1, 1992 and resulted in no significant effect on the 
Consolidated Group's financial position.  Prior to fiscal 1993, the 
Consolidated Group accounted for income taxes as required by 
Accounting Principles Board Opinion No. 11.  See Note 9 to the 
Consolidated Financial Statements.

	In May 1993, Statement of Financial Accounting Standards No. 114 
(SFAS No. 114) "Accounting by Creditors for Impairment of a Loan" was 
issued.  SFAS No. 114 requires that certain impaired loans be measured 
based on the present value of expected future cash flows discounted at 
the loans' effective interest rate or the fair value of the 
collateral. The Consolidated Group is required to adopt this new 
standard by October 1, 1995. The Consolidated Group does not 
anticipate that the adoption of SFAS No. 114 will have a material 
effect on the financial statements.

	Old Standard adopted the provisions of Statement of Financial 
Accounting Standards No. 115 (SFAS No. 115), "Accounting for Certain 
Investments in Debt and Equity Securities" on December 31, 1993.  The 
effect of applying this new standard was to decrease stockholders' 
equity by $59,311, which is net of a $30,554 income tax effect.  At 
September 30, 1995, the Consolidated Group had net unrealized losses 
on investments of $11,884.  This amount is reported as a reduction in 
stockholders' equity.

	In December 1991, Statement of Financial Accounting Standards No. 
107 (SFAS No. 107), "Disclosures about Fair Value of Financial 
Instruments," was issued. SFAS No. 107 requires disclosures of fair 
value information about financial instruments, whether or not 
recognized in the balance sheet, for which it is practicable to 
estimate that value. SFAS No. 107 is effective for financial 
statements issued for fiscal years ending after December 31, 1995 (the 
Consolidated Group's fiscal year ending September 30, 1996) for 
entities with less than $150 million in total assets.  This 
pronouncement does not change any requirements for recognition, 
measurement or classification of financial instruments in the 
Consolidated Group's financial statements.	

Liquidity and Capital Resources

	As a financial institution, the Consolidated Group's liquidity is 
largely linked to its ability to renew, maintain or obtain additional 
sources of cash. The Consolidated Group has successfully maintained 
liquidity, as necessary, during the past four years to allow it to 
continue to invest funds generated by operations and financing 
activities.

	The Consolidated Group generated cash from operations of 
approximately $4.0 million in 1995, $2.3 million in 1994, and $1.4 
million in 1993.  Cash utilized by the Consolidated Group in its 
investing activities was approximately $13.7 million in 1995, $6.3 
million in 1994, and $9.2 million in 1993.  Cash provided by the 
Consolidated Group's financing activities was approximately $9.1 
million in 1995, $4.1 million in 1994, and $5.8 million in 1993.  
These cash flows have resulted in year end cash and cash equivalent 
balances of approximately $3.0 million in 1995, and $3.6 million in 
both 1994 and 1993.

	During 1995, the cash provided by operating activities of 
approximately $4.0 million plus cash provided by financing activities 
of $9.1 million was used entirely to support the net investing 
activities of $13.7 million.  Cash from operating activities of $4.0 
million resulted primarily from net income of $600,000, increases in 
annuity reserves of $1.0 million, increases in compound and accrued 
interest on Certificates of $1.7 million plus other adjustments of $.7 
million.  Cash used in investing activities of $13.7 million primarily 
included acquisition of real estate receivables and other receivable 
investments, net of payments and sales, of $16.1 million, offset by 
$1.0 million from the sale of investment securities and the $1.4 
million of cash received upon the acquisition of various subsidiaries. 
 Cash from financing activities of $9.1 million resulted primarily 
from: (1) issuances of Certificates, net of repayments and related 
debt issue costs, of $5.3 million; (2) issuance of insurance 
annuities, net of surrenders, of approximately  $4.0 million; (3) 
issuances of preferred stock of $.4 million; less (4) debt repayments 
to banks and others of $.2 million; and (5) dividend payments from 
subsidiaries of $.4 million.

	During 1994, the cash provided by operating activities of $2.3 
million, plus cash provided by financing activities of $4.1 million, 
was used entirely to support the net investing activities of $6.3 
million.  Cash from operating activities of $2.3 million resulted 
primarily from net income of $.3 million, increases in compound and 
accrued interest on Certificates of $1.2 million and other accrual 
adjustments of $.6 million.  Cash used in investing activities of $6.3 
million primarily included acquisition of Receivables, net of payments 
and sales, of $8.0 million being offset by the collection of advances 
from related parties of $1.7 million.  Cash from financing activities 
of $4.1 million resulted primarily from: (1) issuance of  
Certificates, net of repayment and related debt issue costs, of $7.5 
million; (2) issuance of common and preferred stock of $.2 million; 
less (3) redemption of common stock, owned by the Consolidated Group's 
former parent, of $3.6 million.

	During 1993, a $2.1 million decrease in cash and cash equivalents 
resulted from cash provided by operating activities of $1.4 million 
less cash used in investing activities of $9.2 million plus cash 
provided by financing activities of $5.7 million.  Cash from operating 
activities resulted primarily from net income of $.3 million and the 
increase in compound and accrued interest on  Certificates of $1.0 
million.  Cash used in investing activities primarily included: (1) 
acquisition of real estate Receivables, net of payments and sales, of 
$7.6 million; and (2) an advance to its parent company of $1.7 million 
for the purchase of Receivables.  Cash provided by financing 
activities included: (1) issuance of  Certificates, net of repayments 
and related debt issue costs, of $7.0 million; less (2) repayment of 
amounts due its parent of $.4 million; and (3) repayment to banks and 
others of $.9 million.

	Management believes that cash flow from operating activities and 
financing activities and the liquidity provided from current 
investments will be sufficient for the Consolidated Group to conduct 
its business and meet its anticipated obligations as they mature 
during fiscal 1996.  Summit has not defaulted on any of its 
obligations since its founding in 1990.



Item 8.     Financial Statements and Supplementary Data

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 1995, 1994, AND 1993

		Page
Report of Independent
Accountants..................................................

Consolidated Balance Sheets..................................

Consolidated Statements of Income............................

Consolidated Statements of Stockholders' Equity..............

Consolidated Statements of Cash Flows........................

Notes to Consolidated Financial Statements...................






                      REPORT OF INDEPENDENT ACCOUNTANTS



     The Directors and Stockholders
     Summit Securities, Inc.


     We have audited the accompanying consolidated balance sheets of
     Summit Securities, Inc. and subsidiaries as of September 30, 1995 
and
     1994, and the related consolidated statements of income, 
stockholders'
     equity and cash flows for each of the three years in the period 
ended
     September 30, 1995.  These financial statements are the 
responsibility
     of the Company's management.  Our responsibility is to express an
     opinion on these financial statements based on our audits.

     We conducted our audits in accordance with generally accepted 
auditing
     standards.  Those standards require that we plan and perform the 
audit
     to obtain reasonable assurance about whether the financial 
statements
     are free of material misstatement.  An audit includes examining, 
on a
     test basis, evidence supporting the amounts and disclosures in 
the
     financial statements.  An audit also includes assessing the 
accounting
     principles used and significant estimates made by management, as 
well
     as evaluating the overall financial statement presentation.  We
     believe that our audits provide a reasonable basis for our 
opinion.

     In our opinion, the financial statements referred to above 
present
     fairly, in all material respects, the consolidated financial 
position
     of Summit Securities, Inc. and subsidiaries as of September 30, 
1995
     and 1994, and the consolidated results of their operations and 
their
     cash flows for each of the three years in the period ended 
September
     30, 1995 in conformity with generally accepted accounting 
principles.

     As discussed in Note 1, the Company changed its methods of 
accounting
     for repossessed real property and income taxes in fiscal 1993.




                                      COOPERS & LYBRAND L.L.P.



     Spokane, Washington
     November 20, 1995
     <PAGE>
     SUMMIT SECURITIES, INC. AND SUBSIDIARIES
     CONSOLIDATED BALANCE SHEETS
     September 30, 1995 and 1994


                                                     1995          
1994
                                                 -----------   -------
----
                     ASSETS

     Cash and cash equivalents                   $ 2,979,362   $ 
3,608,764
     Investments:
       Investments in affiliated company                    
         (Note 4)                                  3,022,425     
3,022,425
       Held-to-maturity securities, at
         amortized cost (Note 5)                   8,269,541
       Accrued interest on investments                46,209
                                                 -----------   -------
----
           Total cash and investments             14,317,537     
6,631,189

     Real estate contracts and mortgage
       notes receivable, net
       (Notes 2, 6 and 11)                        60,117,219    
27,282,991
     Other receivable investments (Notes 3 
       and 11)                                    16,895,902
     Real estate held for sale (Note 6)              836,291       
452,700
     Deferred costs (Note 8)                       3,582,202       
705,994
     Other assets, net                               597,421        
29,114
                                                 -----------   -------
----
           Total assets                          $96,346,572   
$35,101,988
                                                 ===========   
===========

       LIABILITIES AND STOCKHOLDERS' EQUITY

     Liabilities:
       Annuity reserves (Note 12)                $49,559,589
       Investment certificates and accrued 
         interest (Note 7)                        38,545,896   
$31,092,830
       Debt payable (Note 6)                         104,636       
119,888
       Accounts payable and accrued expenses
         including payables to affiliates 
         (Note 11)                                 2,938,182       
416,262
       Deferred income taxes (Note 9)              1,291,202       
151,778
                                                 -----------   -------
----
           Total liabilities                      92,439,505    
31,780,758
                                                 -----------   -------
----
     Commitments and contingencies (Notes 1
       and 12)
     <PAGE>
     SUMMIT SECURITIES, INC. AND SUBSIDIARIES
     CONSOLIDATED BALANCE SHEETS, CONTINUED
     September 30, 1995 and 1994


                                                     1995          
1994
                                                 -----------   -------
----
       LIABILITIES AND STOCKHOLDERS' EQUITY,
                     CONTINUED

     Stockholders' equity (Note 10):
       Preferred stock, $10 par (liquidation
         preference $3,562,220 and $3,171,940)       356,222       
317,194
       Common stock, $10 par                         100,000       
100,000
       Additional paid-in capital                  1,786,991     
1,454,063
       Retained earnings                           1,675,738     
1,449,973
       Net unrealized loss on investments, net
         of income taxes of $6,122                   (11,884)
                                                 -----------   -------
----
           Total stockholders' equity              3,907,067     
3,321,230
                                                 -----------   -------
----
           Total liabilities and
             stockholders' equity                $96,346,572   
$35,101,988
                                                 ===========   
===========


     The accompanying notes are an integral part of the consolidated
       financial statements.
     <PAGE>
     SUMMIT SECURITIES, INC. AND SUBSIDIARIES
     CONSOLIDATED STATEMENTS OF INCOME
     For the Years Ended September 30, 1995, 1994 and 1993

                                         1995         1994         
1993
                                      ----------   ----------   ------
----
     Revenues:
       Annuity fees and charges       $   14,179
       Interest on receivables         3,901,113   $2,422,484   
$1,938,206
       Earned discount on receivables    777,659      373,003      
428,482
       Other investment interest         410,568      275,180      
120,998
       Dividends (Note 11)               256,991             
       Real estate sales               1,123,500       88,000      
280,500
       Fees, commissions, service
         and other income (Note 11)    2,580,105       60,677       
42,714
       Realized net gains on sales
         of investments                                 4,252        
4,724
       Realized net gains on sales
         of real estate contracts and
         mortgage notes and other 
         receivable investments
         (Note 11)                       512,500      171,756
                                      ----------   ----------   ------
----
           Total revenues              9,576,615    3,395,352    
2,815,624
                                      ----------   ----------   ------
----
     Expenses:
       Annuity benefits                1,034,082
       Interest expense                3,251,334    2,527,945    
1,792,059
       Cost of real estate sold        1,117,233       75,656      
298,900
       Provision for losses on
         real estate assets              445,381      155,042       
51,012
       Salaries and employee benefits    907,690
       Commissions to agents           1,395,994
       Other operating and under-
         writing expenses (Note 11)      738,380      231,423      
244,595
       Less amount capitalized as
         deferred costs, net of
         amortization (Note 8)          (140,745)
                                      ----------   ----------   ------
----
           Total expenses              8,749,349    2,990,066    
2,386,566
                                      ----------   ----------   ------
----
     Income before income taxes          827,266      405,286      
429,058
     Income tax provision (Note 9)      (239,707)    (140,407)    
(145,951)
                                      ----------   ----------   ------
----
     Net income                          587,559      264,879      
283,107
     Preferred stock dividends          (309,061)      (2,930)
                                      ----------   ----------   ------
----
     Income applicable to common
       stockholders                   $  278,498   $  261,949   $  
283,107
                                      ==========   ==========   
==========
     Income per share applicable to
       common stockholders            $    27.85   $    13.47   $    
14.15
                                      ==========   ==========   
==========
     Weighted average number of
      shares of common stock
      outstanding                         10,000       19,445       
20,000
                                      ==========   ==========   
==========
     The accompanying notes are an integral part of the consolidated
       financial statements. 
     <PAGE>
     SUMMIT SECURITIES, INC. AND SUBSIDIARIES
     CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
     For the Years Ended September 30, 1995, 1994 and 1993
     <TABLE>
     <CAPTION>
                                                                      
     Net 
                                                                      
  Unrealized
                                                                      
    Gains 
                                                            Additional 
  (Losses)
                                    Preferred     Common     Paid-In  
  on Invest-   Retained
                                      Stock       Stock      Capital  
    ments      Earnings     Total
                                    ----------  ----------  ---------- 
 ----------  ----------  ----------
     <S>                            <C>         <C>         <C>       
  <C>         <C>         <C>
     Balance, September 30, 1992                $  200,000  $1,800,000 
             $  904,917  $2,904,917
     Net income                                                       
                 283,107     283,107
                                    ----------  ----------  ---------- 
 ----------  ----------  ----------
     Balance, September 30, 1993                   200,000   1,800,000 
              1,188,024   3,188,024
     Net income                                                       
                 264,879     264,879
     Cash dividends on preferred
       stock (variable rate)                                          
                  (2,930)     (2,930)
     Common stock redeemed and 
       retired (20,000 shares) 
       (Note 1)                                   (200,000) 
(3,400,000)                         (3,600,000)
     Sale of common stock (10,000 
       shares) (Note 1)                            100,000            
                             100,000
     Sale of variable rate preferred 
       stock, net of offering costs 
       (1,495 shares)               $   14,952                 127,008 
                            141,960
     Issuance of variable rate 
       preferred stock (30,224 
       shares) (Note 1)                302,242               2,720,183 
                          3,022,425
     Income tax benefit associated 
       with disaffiliation (Note 1)                            206,872 
                            206,872
                                    ----------  ----------  ---------- 
 ----------  ----------  ----------
     Balance, September 30, 1994       317,194     100,000   1,454,063 
              1,449,973   3,321,230
     Net income                                                       
                 587,559     587,559
     Cash dividends on preferred
       stock (variable rate)                                          
                (309,061)   (309,061)
     Sale of variable rate preferred 
       stock, net of offering costs
       (3,903 shares)                   39,028                 332,928 
                            371,956
     Net change in unrealized gains
       (losses) on investment 
       securities, net of income
       taxes of $6,122 (Note 5)                                       
  $  (11,884)                (11,884)
     </TABLE>
     <PAGE>
     SUMMIT SECURITIES, INC. AND SUBSIDIARIES
     CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY, CONTINUED
     For the Years Ended September 30, 1995, 1994 and 1993
     <TABLE>
     <CAPTION>
                                                                      
     Net 
                                                                      
  Unrealized
                                                                      
    Gains 
                                                            Additional 
  (Losses)
                                    Preferred     Common     Paid-In  
  on Invest-   Retained
                                      Stock       Stock      Capital  
    ments      Earnings     Total 
                                    ----------  ----------  ---------- 
 ----------  ----------  ----------
     <S>                            <C>         <C>         <C>       
  <C>         <C>         <C>
     Excess cost over historical 
       cost basis of subsidiaries 
       purchased from related 
       parties (Note 1)                                               
                 (52,733)    (52,733)
                                    ----------  ----------  ---------- 
 ----------  ----------  ----------
     Balance, September 30, 1995    $  356,222  $  100,000  $1,786,991 
 $  (11,884) $1,675,738  $3,907,067
                                    ==========  ==========  ========== 
 ==========  ==========  ==========
     </TABLE>


     The accompanying notes are an integral part of the consolidated 
       financial statements. 
     <PAGE>
     SUMMIT SECURITIES, INC. AND SUBSIDIARIES
     CONSOLIDATED STATEMENTS OF CASH FLOWS
     For the Years Ended September 30, 1995, 1994 and 1993
     <TABLE>
     <CAPTION>
                                                                1995  
        1994          1993
                                                            ----------
-   -----------   -----------
     <S>                                                    <C>       
    <C>           <C>
     Operating activities:
       Net income                                           $   
587,559   $   264,879   $   283,107
       Adjustments to reconcile net income to net cash 
         provided by operating activities:
           Proceeds from sale of trading securities                   
     20,077,343     2,052,187
           Purchase of trading securities                             
    (20,073,050)   (2,047,812)
           Realized net gains on sales of investments                 
         (4,252)       (4,724)
           Realized net gains on sales of real estate 
             contracts and mortgage notes and other 
             receivable investments                            
(512,500)     (171,756)
           (Gain) loss on sale of real estate                    
(6,267)      (12,344)       18,400
           Provision for losses on real estate assets           
445,381       155,042        51,012
           Amortization of deferred costs                       
519,280       262,484       151,763
           Deferred income tax provision                        
164,249       136,500       145,951
           Changes in assets and liabilities, net of 
             effects from purchase of subsidiaries:  
               Annuity reserves                               
1,031,720  
               Compound and accrued interest on investment
                 certificates and debt payable                
1,714,943     1,229,371       955,322
               Accrued interest receivable                     
(306,978)      107,423      (175,460)
               Other                                            
365,111       312,110         7,383
                                                            ----------
-   -----------   -----------
                 Net cash provided by operating activities    
4,002,498     2,283,750     1,437,129
                                                            ----------
-   -----------   -----------
     Investing activities:
       Payments for purchase of subsidiaries, net of cash 
         received                                             
1,406,873
       Advances to parent and affiliated companies                    
                   (1,710,743)
       Collection of advances to parent and affiliated
         companies                                                    
      1,710,743
       Proceeds from sales of available-for-sale
         investments                                            
992,370
       Principal payments on real estate contracts and
         mortgage notes receivable                            
6,567,102     1,829,515     4,039,074
       Principal payments on other receivable investments       
393,942
       Purchases of real estate contracts and mortgage
         notes receivable                                   
(26,130,804)  (20,177,705)  (15,667,120)
     </TABLE> 
     <PAGE>
     SUMMIT SECURITIES, INC. AND SUBSIDIARIES
     CONSOLIDATED CASH FLOWS, Continued
     For the Years Ended September 30, 1995, 1994 and 1993

     <TABLE>
     <CAPTION>
                                                                1995  
        1994          1993
                                                            ----------
-   -----------   -----------
     <S>                                                    <C>       
    <C>           <C>
     Investing activities, continued:
       Purchases of other receivable investments            
(18,316,371)
       Proceeds from real estate sales                          
163,687         6,200        75,008
       Additions to real estate held for sale                  
(141,336)      (82,135)      (24,155)
       Proceeds from sale of real estate contracts and
         mortgage notes and other receivable investments     
21,350,848    10,393,131     4,044,423
                                                            ----------
-   -----------   -----------
           Net cash used in investing activities            
(13,713,689)   (6,320,251)   (9,243,513)
                                                            ----------
-   -----------   -----------
     Financing activities:
       Repayment of amounts due to parent company                     
                     (400,365)
       Receipts from annuity products                         
5,903,808              
       Withdrawals of annuity products                       
(1,934,898)
       Proceeds from investment certificates                  
8,585,470    10,539,684     9,677,843
       Repayments of investment certificates                 
(2,847,347)   (2,635,649)   (2,300,088)
       Repayments to banks and others                          
(193,631)      (48,170)     (890,247)
       Debt issuance costs                                     
(441,775)     (444,102)     (333,489)
       Excess cost over historical cost basis of 
         subsidiaries purchased from related parties            
(52,733)
       Issuance of preferred stock                              
371,956       141,960
       Issuance of common stock                                       
        100,000
       Redemption and retirement of common stock                      
     (3,600,000)
       Dividends paid on preferred stock                       
(309,061)       (2,930)
                                                            ----------
-   -----------   -----------
           Net cash provided by financing activities          
9,081,789     4,050,793     5,753,654
                                                            ----------
-   -----------   -----------
     Net increase (decrease) in cash and cash equivalents      
(629,402)       14,292    (2,052,730)

     Cash and cash equivalents, beginning of year             
3,608,764     3,594,472     5,647,202
                                                            ----------
-   -----------   -----------
     Cash and cash equivalents, end of year                 $ 
2,979,362   $ 3,608,764   $ 3,594,472
                                                            
===========   ===========   ===========
     </TABLE>
     See Note 14 for supplemental cash flow information.

     The accompanying notes are an integral part of the consolidated 
       financial statements. 
     <PAGE>
     SUMMIT SECURITIES, INC. AND SUBSIDIARIES
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


     1.  SUMMARY OF ACCOUNTING POLICIES:

           BUSINESS AND REORGANIZATION

           Summit Securities, Inc., d/b/a National Summit Securities, 
Inc.
           in the states of New York and Ohio (the Company),  was
           incorporated on July 25, 1990.  Prior to September 9, 1994, 
the
           Company was a wholly-owned subsidiary of Metropolitan 
Mortgage &
           Securities Co., Inc. (Metropolitan).  On September 9, 1994, 
the
           controlling interest in the Company was acquired by 
National
           Summit Corp., a Delaware corporation which is wholly-owned 
by C.
           Paul Sandifur, Jr.  The change in control was made pursuant 
to a
           reorganization wherein the Company redeemed all the common
           shares held by its former parent company, Metropolitan, 
which
           consisted of 100% of the outstanding common stock of the 
Company
           for $3,600,000, which approximated the net book value of 
the
           Company at the transaction date.  Contemporaneously with 
this
           redemption, the Company issued 10,000 shares of common 
stock to
           National Summit Corp. for $100,000.  In addition, various
           investors holding Metropolitan's common and preferred 
stock,
           including members of Mr. Sandifur's immediate family, 
acquired
           30,224 shares of the Company's preferred stock Series S-1 
for
           $100 per share in exchange for preferred and common shares 
of
           Metropolitan.  The preferred shares issued for the 
Metropolitan
           shares were recorded at their face value which approximated
           recent issuances to unrelated parties.  The face value of 
the
           preferred shares approximates fair value due to the 
variable
           dividend rate associated with such shares (see Note 4).

           On January 31, 1995, the Company consummated an agreement 
with
           Metropolitan, whereby it acquired Metropolitan Investment
           Securities, Inc. (MIS) effective January 31, 1995 at a 
purchase
           price of $288,950, which approximated the book value of MIS 
at
           date of purchase.  This acquisition was recorded as a 
purchase. 
           However, due to the common control of Metropolitan and the
           Company, the historical cost bases of the assets and 
liabilities
           of MIS were recorded by the Company.

           On May 31, 1995, the Company consummated an agreement with
           Metropolitan, whereby it acquired Old Standard Life 
Insurance
           Company (OSL) effective May 31, 1995, at a purchase price 
of
           $2,722,000, which approximated the historical cost basis of 
OSL
           at date of purchase, with future contingency payments equal 
to
           20% of statutory income prior to the accrual of income tax 
for
           the fiscal years ending December 31, 1995, 1996 and 1997. 
           Future contingent payments, if any, will be accounted for 
as
           dividends.  The purchase price plus estimated future 
contingency
           payments approximate the appraised valuation of OSL.  The
           acquisition was recorded as a purchase.  However, due to 
the
           common control of Metropolitan and the Company, the 
historical
           cost bases of assets and liabilities of OSL were recorded 
by
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     1.  SUMMARY OF ACCOUNTING POLICIES, CONTINUED:

           BUSINESS AND REORGANIZATION, CONTINUED

           the Company.  The total purchase price of MIS and OSL 
exceeded
           the historical cost basis of the net assets of the 
companies by
           approximately $53,000.  Due to the common control of
           Metropolitan and the Company, this excess purchase price 
has
           been recorded as a dividend through a reduction of retained
           earnings.

           Pro forma summary financial information of the Company, as 
if
           the acquisitions of MIS and OSL occurred as of October 1, 
1993,
           is as follows:

                                                  Years Ended 
September 30,
                                                  --------------------
----
                                                     1995         1994
                                                  -----------  -------
----
             Revenues                             $13,704,000  $ 
9,930,000
             Net income                             1,184,000      
874,000
             Net income per common share                87.50        
44.80

           Metropolitan is effectively controlled by C. Paul Sandifur, 
Jr.
           through his common stock ownership and voting control.  
National
           Summit Corp. is wholly-owned by C. Paul Sandifur, Jr. 
through
           ownership of 100% of the voting stock.  National Summit 
Corp.
           does not have any operations or activities other than the
           acquisition of the Company.  The consolidated financial
           statements include the accounts of the Company and its 
wholly-
           owned subsidiaries, Old Standard Life Insurance Company 
(since
           May 31, 1995), Metropolitan Investment Securities, Inc. 
(since
           January 31, 1995) and Summit Property Development, Inc.  
All
           significant intercompany transactions and balances have 
been
           eliminated in consolidation.

           The Company purchases contracts and mortgage notes 
collater-
           alized by real estate and other receivable investments, 
with
           funds generated from the public issuance of debt securities 
in
           the form of investment certificates, annuity products, cash 
flow
           from receivable payments and sales of real estate.

           CASH AND CASH EQUIVALENTS

           The Company considers all highly-liquid debt instruments
           purchased with a remaining maturity of three months or less 
to
           be cash equivalents.  Cash includes all balances on hand 
and on
           deposit in banks and financial institutions.  The Company
           periodically evaluates the credit quality of its depository
           financial institutions.  Substantially all cash and cash
           equivalents are on deposit with one financial institution 
and
           balances periodically exceed the FDIC insurance limit.
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     1.  SUMMARY OF ACCOUNTING POLICIES, CONTINUED:

           INVESTMENTS IN AFFILIATED COMPANY

           Investments in equity securities of Metropolitan are 
carried at
           the lower of cost or estimated net realizable value.

           INVESTMENTS

           The Company has classified its investments in debt and 
equity
           securities, other than those of an affiliated company, as
           "available-for-sale," "held-to-maturity" or "trading."  The
           accounting policies related to these investments are as 
follows:

             AVAILABLE-FOR-SALE SECURITIES:  Available-for-sale 
securities,
             consisting primarily of government-backed securities, 
public
             utility and corporate bonds, are carried at market value.
             Realized gains and losses on the sale of these securities 
are
             recognized on a specific identification basis in the
             consolidated statement of income in the period the 
securities
             are sold.  Unrealized gains and losses are presented as a
             separate component of stockholders' equity, net of 
related
             income taxes.

             HELD-TO-MATURITY SECURITIES:  Held-to-maturity 
securities,
             consisting primarily of government-backed securities and
             corporate bonds having fixed maturities, are carried at
             amortized cost.  The Company has the ability and intent 
to
             hold these investments until maturity.

             TRADING SECURITIES:  Trading securities, consisting 
primarily
             of government-backed securities and corporate bonds, are
             bought and held principally for the purpose of selling 
them in
             the near term and are recorded at market value.  Realized 
and
             unrealized gains and losses are included in the 
consolidated
             statements of income.

           For other than a temporary decline in the value of a common
           stock, preferred stock or publicly traded bonds below their 
cost
           or amortized cost, the investment is reduced to its net
           realizable value, which becomes the new cost basis of the
           investment.  The amount of the reduction is reported as a 
loss. 
           Any recovery of market value in excess of the investment's 
new
           cost basis is recognized as a realized gain only upon sale,
           maturity or other disposition of the investment.  Factors 
which
           the Company evaluates in determining the existence of an 
other
           than temporary decline in value include the length of time 
and
           extent to which market value has been less than cost; the
           financial condition and near-term prospects of the issuers; 
and
           the intent and ability of the Company to retain its 
investment
           for the anticipated period of recovery in market value.
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     1.  SUMMARY OF ACCOUNTING POLICIES, CONTINUED:

           REAL ESTATE CONTRACTS AND MORTGAGE NOTES RECEIVABLE

           Real estate contracts and mortgage notes receivable held 
for
           investment purposes are carried at amortized cost.  
Discounts
           originating at the time of purchase, net of capitalized
           acquisition costs, are amortized using the level yield
           (interest) method.  For contracts acquired after September 
30,
           1992, net purchase discounts are amortized on an individual
           contract basis using the interest method over the remaining
           contractual term of the contract.  For contracts acquired 
before
           October 1, 1992, the Company accounts for its portfolio of
           discounted loans using anticipated prepayment patterns to 
apply
           the interest method of amortizing discounts.  Discounted
           contracts are pooled by the fiscal year of purchase and by
           similar contract types.  The amortization period, which is
           approximately 78 months, estimates a constant prepayment 
rate of
           10-12 percent per year and scheduled payments, which is
           consistent with the Company's prior experience with similar
           loans and the Company's expectations.

           In May 1993, Statement of Financial Accounting Standards 
No. 114
           (SFAS No. 114), "Accounting by Creditors for Impairment of 
a
           Loan," was issued.  SFAS No. 114 requires that certain 
impaired
           loans be measured based on the present value of expected 
future
           cash flows discounted at the loan's effective interest rate 
or
           the fair value of the collateral.  The Company is required 
to
           adopt this new standard on October 1, 1995.  The Company 
does
           not anticipate that the adoption of SFAS No. 114 will have 
a
           material effect on the consolidated financial statements.

           OTHER RECEIVABLE INVESTMENTS

           Other receivables held for investment purposes are carried 
at
           amortized cost.  Discounts originating at the time of 
purchase,
           net of capitalized acquisition costs, are amortized using 
the
           level yield (interest) method on an individual receivable 
basis
           over the remaining contractual term of the receivable.

           REAL ESTATE HELD FOR SALE

           Real estate is stated at the lower of cost or fair value 
less
           costs to sell.  The Company principally acquires real 
estate
           through foreclosure or forfeiture.  Cost is determined by 
the
           purchase price of the real estate or, for real estate 
acquired
           by foreclosure, at the lower of (a) the fair value of the
           property at the date of foreclosure less estimated selling
           costs, or (b) cost (unpaid contract carrying value). 
           Periodically, the Company reviews its carrying values of 
real
           estate held for sale by obtaining new or updated 
appraisals, and
           adjusts its carrying values to the lower of cost or net
           realizable value, as necessary.
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     1.  SUMMARY OF ACCOUNTING POLICIES, CONTINUED:

           REAL ESTATE HELD FOR SALE, CONTINUED

           Profit on sales of real estate is recognized when the 
buyers'
           initial and continuing investment is adequate to 
demonstrate
           that (1) a commitment to fulfill the terms of the 
transaction
           exists, (2) collectibility of the remaining sales price due 
is
           reasonably assured, and (3) the Company maintains no 
continuing
           involvement or obligation in relation to the property sold 
and
           transfers all the risks and rewards of ownership to the 
buyer.

           ALLOWANCE FOR LOSSES ON REAL ESTATE RECEIVABLES

           The established allowances for losses on real estate 
receivables
           include amounts for estimated probable losses on real 
estate
           contracts and mortgage notes receivable.  Specific 
allowances
           are established for delinquent contract receivables, as
           necessary, with net carrying values in excess of $100,000. 
           Additionally, the Company establishes allowances, based on 
prior
           delinquency and loss experience, for currently performing
           receivables and smaller delinquent receivables.  Allowances 
for
           losses are based on the net carrying values of the 
contracts,
           including accrued interest.  Accordingly, the Company 
continues
           interest accruals on delinquent loans until foreclosure, 
unless
           the principal and accrued interest on the loan exceeds the 
fair
           value of the collateral, net of estimated selling costs.  
The
           Company obtains new or updated appraisals on collateral for
           appropriate delinquent receivables, and adjusts the 
allowance
           for losses as necessary, such that the net carrying value 
does
           not exceed net realizable value.

           DEFERRED COSTS

           Commission expense and other annuity policy and investment
           certificates issuance costs are deferred.  For investment
           certificates, amortization is computed over the expected
           certificate term which ranges from 6 months to 5 years, 
using
           the level yield (interest) method.  For annuities, the 
portion
           of the deferred policy acquisition cost that is estimated 
not to
           be recoverable from surrender charges is amortized as a 
constant
           percentage of the estimated gross profits (both realized 
and
           unrealized) associated with the annuities.
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     1.  SUMMARY OF ACCOUNTING POLICIES, CONTINUED:

           ANNUITY RESERVES

           Premiums for annuities are recorded as annuity reserves. 
           Reserves for annuities are equal to the sum of the account
           balances including deferred service charges.  Based on past
           experience, consideration is given in actuarial 
calculations to
           the number of policyholder and annuitant deaths that might 
be
           expected, policy lapses, surrenders and terminations.

           RECOGNITION OF ANNUITY REVENUES

           Annuity revenues consist of the charges assessed against 
the
           account balance for expense and surrender charges.  Charges 
for
           future services are assessed; however, the related revenue 
is
           deferred and recognized in income over the period 
benefitted
           using the same assumptions as are used to amortize deferred
           acquisition costs.

           GUARANTY FUND ASSESSMENTS

           OSL is subject to insurance guaranty laws in the states in 
which
           it operates.  These laws provide for assessments against
           insurance companies for the benefit of policyholders and
           claimants in the event of insolvency of other life 
insurance
           companies.  A portion of these assessments can be offset 
against
           the payment of future premium taxes.  However, future 
changes in
           state laws could decrease the amount available for offset. 
 As
           of September 30, 1995, the Company has accrued a liability 
for
           guaranty fund assessments for known insolvencies net of
           estimated recoveries through premium tax offsets.

           INCOME TAXES

           The Company was included in the consolidated income tax 
return
           with Metropolitan, its former parent through September 9, 
1994. 
           Subsequent to that date, the Company is included in the 
consoli-
           dated income tax return with National Summit Corp.  The 
Company
           is allocated a current and deferred tax provision from 
Metro-
           politan or National Summit Corp. as if the Company filed a
           separate tax return.  Effective October 1, 1992, Summit 
adopted
           the provisions of Statement of Financial Accounting 
Standards
           No. 109 (SFAS No. 109), "Accounting for Income Taxes."  
There
           was no effect on the Company's financial statements of 
adopting
           SFAS No. 109.

           In association with the disaffiliation from Metropolitan in
           1994, the Company received certain income tax benefits,
           principally associated with the allocation of the 
Metropolitan
           consolidated group's net operating loss carryforwards and a
           reduction in amounts payable to Metropolitan, which 
resulted in
           a reduction of deferred taxes payable of approximately 
$207,000. 
           This benefit has been recorded as additional paid-in 
capital due
           to the affiliation between Metropolitan and the Company.
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     1.  SUMMARY OF ACCOUNTING POLICIES, CONTINUED:

           FINANCIAL INSTRUMENTS

           In December 1991, Statement of Financial Accounting 
Standards
           No. 107 (SFAS No. 107), "Disclosures about Fair Value of
           Financial Instruments," was issued.  SFAS No. 107 requires
           disclosures of fair value information about financial
           instruments, whether or not recognized in the balance 
sheet, for
           which it is practicable to estimate that value.  SFAS No. 
107 is
           effective for financial statements issued for fiscal years
           ending after December 31, 1995 (the Company's fiscal year 
ending
           September 30, 1996) for entities with less than $150 
million in
           total assets.  This pronouncement does not change any
           requirements for recognition, measurement or classification 
of
           financial instruments in the Company's financial 
statements.

           EARNINGS PER COMMON SHARE

           Earnings per common share are computed by deducting 
preferred
           stock dividends from net income and dividing the result by 
the
           weighted averaged number of shares of common stock 
outstanding.
           There were no common stock equivalents or potentially 
dilutive
           securities outstanding during any of the three years in the
           period ended September 30, 1995.

           RECLASSIFICATIONS

           Certain amounts in the 1994 and 1993 financial statements 
have
           been reclassified to conform with the 1995 presentation.  
These
           reclassifications had no effect on net income or retained
           earnings as previously reported.


     2.  REAL ESTATE CONTRACTS AND MORTGAGE NOTES RECEIVABLE:

         Real estate contracts and mortgage notes receivable include
         mortgages collateralized by property located throughout the 
United
         States.  At September 30, 1995, the Company held first 
position
         liens associated with contracts and mortgage notes receivable 
with
         a face value of approximately $51,100,000 and second position
         liens of approximately $11,230,000.  Approximately 18% of the 
face
         value of the Company's real estate contracts and mortgage 
notes
         receivable are collateralized by property located in the 
Southwest
         (Texas, Louisiana and New Mexico), approximately 21% by 
property
         located in the Pacific Southwest (California, Nevada and 
Arizona),
         approximately 22% by property located in the Pacific 
Northwest
         (Washington, Alaska, Idaho, Montana and Oregon) and 
approximately
         10% by property located in the Southeast (Florida, Georgia, 
North
         Carolina and South Carolina).
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     2.  REAL ESTATE CONTRACTS AND MORTGAGE NOTES RECEIVABLE, 
CONTINUED:

         The face value of the Company's real estate contracts and 
mortgage
         notes receivable as of September 30, 1995 and 1994 is grouped 
by
         the following dollar ranges:

                                                     1995          
1994
                                                 -----------   -------
----
           Under $15,001                         $ 3,399,194   $ 
1,262,236
           $15,001 to $40,000                     22,777,987    
10,555,623
           $40,001 to $80,000                     20,210,801     
9,970,820
           $80,001 to $150,000                    11,883,730     
4,684,026
           Greater than $150,000                   4,057,536     
1,931,873
                                                 -----------   -------
----
                                                 $62,329,248   
$28,404,578
                                                 ===========   
===========

         Contractual interest rates on the face value of the Company's 
real
         estate contracts and mortgage notes receivable as of 
September 30,
         1995 and 1994 are as follows:

                                                     1995          
1994
                                                 -----------   -------
----
           Less than 8.00%                       $ 7,003,736   $ 
3,072,262
           8.00% to 8.99%                          9,430,059     
3,682,307
           9.00% to 9.99%                         13,741,811     
6,489,889
           10.00% to 10.99%                       20,058,197    
10,242,985
           11.00% to 11.99%                        7,687,561     
2,868,603
           12.00% to 12.99%                        2,957,362     
1,533,520
           13% or higher                           1,450,522       
515,012
                                                 -----------   -------
----
                                                 $62,329,248   
$28,404,578
                                                 ===========   
===========

         The weighted average contractual interest rate on these 
receiv-
         ables at September 30, 1995 is approximately 9.3%.  Maturity 
dates
         range from 1995 to 2025.  The constant effective yield on
         contracts purchased in fiscal 1995 and 1994 was approximately
         10.9% and 11.5%, respectively.
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     2.  REAL ESTATE CONTRACTS AND MORTGAGE NOTES RECEIVABLE, 
CONTINUED:

         The following is a reconciliation of the face value of the 
real
         estate contracts and mortgage notes receivable to the 
Company's
         carrying value at September 30, 1995 and 1994:

                                                     1995          
1994
                                                 -----------   -------
----
           Face value of discounted receivables  $51,768,999   
$21,931,395
           Face value of originated and non-
             discounted receivables               10,560,249     
6,473,183
           Unrealized discounts, net of 
             unamortized acquisition costs        (2,614,937)   
(1,337,365)
           Allowance for losses                     (765,130)     
(250,572)
           Accrued interest receivable             1,168,038       
466,350
                                                 -----------   -------
----
           Carrying value                        $60,117,219   
$27,282,991
                                                 ===========   
===========

         The principal amount of receivables with required principal 
or
         interest payments being in arrears for more than three months 
was
         approximately $2,675,000 and $1,085,000 at September 30, 1995 
and
         1994, respectively.  During the years ended September 30, 
1995 and
         1994, the Company sold approximately $20,000,000 and 
$10,400,000
         of real estate contracts and mortgage notes receivables 
without
         recourse and recognized gains of approximately $384,000 and
         $172,000, respectively.  The sales during 1995 were primarily 
made
         to affiliated companies at estimated fair value which 
resulted in
         a gain of approximately $335,000.

         Aggregate amounts of receivables (face amount) expected to be
         received, based upon estimated prepayment patterns, are as
         follows:


                    Fiscal Year Ending
                      September 30, 
                    -------------------
                           1996                 $ 7,328,000
                           1997                   6,666,000
                           1998                   6,063,000
                           1999                   5,515,000
                           2000                   5,015,000
                        Thereafter               31,742,248
                                                -----------
                        Total                   $62,329,248
                                                ===========
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     3.  OTHER RECEIVABLE INVESTMENTS:

         Other receivable investments include various cash flow 
investments
         which are not secured by real estate, primarily annuities and
         lottery prizes.  Annuities are general obligations of the 
payor,
         generally an insurance company.  Lottery prizes are general
         obligations of the insurance company or other entity making 
the
         lottery prize payments.  Additionally, when the lottery 
prizes are
         from a state-run lottery, the lottery prize is often backed 
by the
         general credit of the state.

         These investments normally are non-interest bearing and are
         purchased at a discount sufficient to meet the Company's
         investment yield requirements.  The weighted average constant
         effective yield on these receivables at September 30, 1995 is
         approximately 9.1%.  Maturities range from 1995 to 2035.

         The following is a reconciliation of the face value of the 
other
         receivable investments to the Company's carrying value at
         September 30, 1995:

           Face value of receivables                     $28,618,310
           Unrealized discounts, net of unamortized
             acquisition costs                           (11,722,408)
                                                         -----------
           Carrying values                               $16,895,902
                                                         ===========

         All such receivables at September 30, 1995 were performing in
         accordance with their contractual terms.

         During the year ended September 30, 1995, the Company sold
         approximately $1,260,000 of these receivables without 
recourse and
         recognized a gain of approximately $128,500.

         The following individual other receivable investments were in
         excess of ten percent of stockholders' equity at September 
30,
         1995:

                                                         Aggregate
                                                          Carrying
                  Issuer                                   Amount
           -----------------------                       ----------
           Arizona State Agency                          $3,344,695
           California State Agency                        2,036,041
           Michigan State Agency                            906,801
           New Jersey State Agency                        2,933,380
           New York State Agency                          2,364,728
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     3.  OTHER RECEIVABLE INVESTMENTS, CONTINUED:

         Aggregate amounts of receivables (face amounts) expected to 
be
         received are as follows:

                    Fiscal Year Ending
                      September 30, 
                    -------------------
                           1996                 $ 2,128,000
                           1997                   2,205,000
                           1998                   2,153,000
                           1999                   2,348,000
                           2000                   2,393,000
                        Thereafter               17,391,310
                                                -----------
                        Total                   $28,618,310
                                                ===========


     4.  INVESTMENTS IN AFFILIATED COMPANY:

         At September 30, 1995 and 1994, the Company owns the 
following
         preferred and common shares of Metropolitan:

                                                    Cost and
                        Type            Number      Carrying
                      of Shares       of Shares       Value
                   --------------     ---------    ----------
                   Class A common            9     $  420,205
                   Preferred:
                     Series C          116,094      1,160,942
                     Series D           24,328        243,278
                     Series E-1        105,800      1,058,000
                     Series E-4          1,400        140,000
                                                   ----------
                                                   $3,022,425
                                                   ==========

         Class A common stock is the only voting class of 
Metropolitan's
         stock.  Class A common stock is junior to Class B common 
stock as
         to liquidation preference.  At September 30, 1995 and 1994, 
the
         Company owned 7.09% and 7.12%, respectively, of the 
outstanding
         Class A common stock.

         The preferred stock has a par value of $10 per share and has
         liquidation preferences equal to its issue price.  They are 
non-
         voting and are senior to the common shares as to dividends. 
         Dividends are cumulative and at variable rates; however, 
dividends
         shall be no less than 6% or greater than 14% per annum.  At
         September 30, 1995, the preferred Series C, D and E-1 had 
dividend
         rates of 7.97%.  The preferred Series E-4 had a dividend rate 
of
         8.47%.  Neither the common nor preferred shares are traded in 
a
         public market.
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     5.  INVESTMENTS:

         A summary of carrying and estimated market values of 
investments
         at September 30, 1995 is as follows:

                            Amortized 
                               Cost       Gross       Gross      
Estimated
                            (Carrying   Unrealized  Unrealized    
Market
           Held-to-Maturity   Value)      Gains       Losses       
Value
           ---------------- ----------  ----------  ----------  ------
----
           U.S. Government 
             Bonds          $5,229,949  $        0  $ (144,091) 
$5,085,858
           Corporate Bonds   3,039,592           0     (53,985)  
2,985,607
                            ----------  ----------  ----------  ------
----
           Total            $8,269,541  $        0  $ (198,076) 
$8,071,465
                            ==========  ==========  ==========  
==========

         All bonds held at September 30, 1995 were performing in 
accordance
         with their terms.

         All investments are held by the Company's life insurance
         affiliate.  During the year ended September 30, 1994, this
         affiliate transferred approximately $6,000,000 of investments
         from its available-for-sale portfolio to its held-to-maturity
         portfolio.  At the date of transfer, these investments had 
net
         unrealized losses of approximately $29,000 before income 
taxes. 
         These unrealized losses are being amortized over the 
remaining
         term of the investments transferred using the interest 
method.  
         At September 30, 1995, the remaining unamortized loss of
         approximately $12,000, net of income taxes, is reported as a
         reduction of stockholders' equity.

         The following individual investments (excluding U.S. 
government
         bonds) held by the Company at September 30, 1995 were in 
excess of
         ten percent of stockholders' equity:

                                                          Carrying
                         Issuer                            Amount
           -------------------------------------         ----------
           Corporate Bonds:
             Countrywide Funding                         $1,004,526
             General Electric Credit Corporation          1,031,930
             Wal-Mart Stores                              1,003,136

         There were no individual investments held by the Company at
         September 30, 1994 in excess of ten percent of stockholders'
         equity.

         At September 30, 1995, the contractual maturities of the debt
         securities are from one year through five years.  Expected
         maturities will differ from contractual maturities because 
issuers
         may have the right to call or pre-pay obligations with or 
without
         call or pre-payment penalties.
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     5.  INVESTMENTS, CONTINUED:

         Upon the acquisition of OSL, the Company transferred an 
investment
         with an amortized cost of approximately $992,000 which was
         previously classified by Metropolitan as held-to-maturity to
         available-for-sale.  The investment was subsequently sold at 
a
         loss of approximately $8,000 when the issuer called the bond.


     6.  DEBT PAYABLE:

         At September 30, 1995 and 1994, debt payable consists of:

                                                         1995       
1994
                                                       --------   ----
----

         Real estate contracts and mortgage notes 
           payable, interest rates ranging from 7% 
           to 9.5%, due in installments through 2009,
           collateralized by senior liens on certain 
           of the Company's real estate contracts, 
           mortgage notes receivable and real estate
           held for sale                               $104,067   
$119,573

         Accrued interest payable                           569       
 315
                                                       --------   ----
----
                                                       $104,636   
$119,888
                                                       ========   
========

         Aggregate amounts of principal payments due on debt payable 
at
         September 30, 1995 are as follows:

                    Fiscal Year Ending
                      September 30, 
                    -------------------
                           1996                       $ 13,818
                           1997                         14,413
                           1998                         15,679
                           1999                         15,198
                           2000                          6,630
                        Thereafter                      38,898
                                                      --------
                        Total                         $104,636
                                                      ========
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     7.  INVESTMENT CERTIFICATES:

         At September 30, 1995 and 1994, investment certificates 
consist
         of:

             Annual
            Interest         Principally
             Rates           Maturing in           1995           1994 
           ----------    -------------------    -----------    -------
----
           6% to 7%      1996 and 1997          $   810,558    $ 
1,732,000
           7% to 8%      1996 and 1997            1,789,822      
1,083,000
           8% to 9%      1998, 1999 and 2000     22,070,089     
15,808,000
           9% to 10%     1997 and 1998            2,831,765      
3,202,000
           10% to 11%    1996                     6,222,424      
6,161,535
                                                -----------    -------
----
                                                 33,724,658     
27,986,535
           Compound and accrued interest          4,821,238      
3,106,295
                                                -----------    -------
----
           Totals                               $38,545,896    
$31,092,830
                                                ===========    
===========


         The weighted average interest rate on outstanding investment
         certificates at both September 30, 1995 and 1994 was 
approximately
         8.8%.

         Investment certificates and compound and accrued interest at
         September 30, 1995 mature as follows:

                    Fiscal Year Ending
                      September 30, 
                    -------------------
                           1996                 $10,152,000
                           1997                   4,816,000
                           1998                   8,844,000
                           1999                   7,932,000
                           2000                   6,463,000
                        Thereafter                  338,896
                                                -----------
                        Total                   $38,545,896
                                                ===========
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     8.  DEFERRED COSTS:

         An analysis of deferred costs related to annuity acquisition 
and
         investment certificates issued for the years ended September 
30,
         1995, 1994 and 1993 is as follows:

                                         Annuity    Investment
                                       Acquisition Certificates   
Total 
                                       ----------- ------------ ------
----
         Balance, September 30, 1992                $  342,650  $  
342,650
         Deferred during the period:
           Commissions                                 276,060     
276,060
           Other expenses                               57,429      
57,429
                                                    ----------  ------
----
         Total deferred costs                          676,139     
676,139
         Amortized during the period                  (151,763)   
(151,763)
                                                    ----------  ------
----
         Balance, September 30, 1993                   524,376     
524,376
         Deferred during the period:
           Commissions                                 299,748     
299,748
           Other expense                               144,354     
144,354
                                                    ----------  ------
----
         Total deferred costs                          968,478     
968,478
         Amortized during the period                  (262,484)   
(262,484)
                                                    ----------  ------
----
         Balance, September 30, 1994                   705,994     
705,994
         Increase due to acquisition 
           of life insurance 
           affiliate                   $2,614,778                
2,614,778
         Deferred during the period:
           Commissions                    291,050      259,633     
550,683
           Other expense                   47,885      182,142     
230,027
                                       ----------   ----------  ------
----
         Total deferred costs           2,953,713    1,147,769   
4,101,482
         Amortized during the period     (198,190)    (321,090)   
(519,280)
                                       -----------  ----------  ------
----
         Balance, September 30, 1995   $2,755,523   $  826,679  
$3,582,202
                                       ==========   ==========  
==========

     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     9.  INCOME TAXES:

         The tax effect of the primary temporary differences giving 
rise 
         to the Company's deferred tax assets and liabilities as of
         September 30, 1995 and 1994 is as follows:

                           1995                    Assets      
Liabilities
           ------------------------------------  ----------    -------
----
           Mark to market for investment 
             securities                                        $   
73,468
           Guaranty fund assessments             $  150,045
           Annuity reserves                         597,743
           Management fee payable                                 
402,101
           Allowance for losses on real estate
             and receivables                        196,202
           Deferred policy acquisition costs                      
936,878
           Deferred contract acquisition costs 
             and discount yield recognition                     
1,486,157
           Net operating loss carryforwards         535,500
           Other                                    127,912
                                                 ----------    -------
---
           Total deferred income taxes           $1,607,402    
$2,898,604
                                                 ==========    
==========

                           1994                    
           ------------------------------------
           Management fee payable                $   20,400
           Allowance for losses on real estate
             and receivables                        103,675
           Deferred contract acquisition costs
             and discount yield recognition                    $  
619,716
           Net operating loss carryforwards         343,863
                                                 ----------    -------
---
           Total deferred income taxes           $  467,938    $  
619,716
                                                 ==========    
==========

         No valuation allowance has been established to reduce the 
deferred
         tax assets, as it is more likely than not that these assets 
will
         be realized due to the future reversals of existing taxable
         temporary differences.  As of September 30, 1995, the 
Company's
         net operating loss carryforwards of approximately $1,575,000
         expire from 2006 through 2010.

         Due to the Company's previous change in ownership, 
approximately
         $1,000,000 of the above net operating losses are subject to 
the
         provisions of Internal Revenue Code Section 382, which limits 
the
         annual utilization of net operating losses to approximately
         $200,000 per year.
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     9.  INCOME TAXES, CONTINUED:

         The provision for income taxes is computed by applying the
         statutory federal income tax rate to income before income 
taxes as
         follows:

                                              1995       1994       
1993
                                            --------   --------   ----
----
           Federal income tax at statutory 
             rate                           $281,270   $137,797   
$145,880
           Affiliate corporate dividend
             received deduction              (49,921)          
           Other                               8,358      2,610       
  71
                                            --------   --------   ----
----
           Income tax provision             $239,707   $140,407   
$145,951
                                            ========   ========   
========

         The components of the provision for income taxes are as 
follows:

                                              1995       1994       
1993
                                            --------   --------   ----
----
           Current                          $ 75,458   $  3,907
           Deferred                          164,249    136,500   
$145,951
                                            --------   --------   ----
----
                                            $239,707   $140,407   
$145,951
                                            ========   ========   
========
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     10. STOCKHOLDERS' EQUITY:

         A summary of preferred and common shares at September 30, 
1995 and
         1994 is as follows:

     <TABLE>
     <CAPTION>
                                                                  
Issued and Outstanding Shares
                                                               -------
-----------------------------
                                          Authorized Shares           
1995               1994
                                         --------------------  -------
----------  -----------------
                                           1995       1994      Amount 
  Shares    Amount   Shares
                                         ---------  ---------  -------
-  -------  --------  -------
           <S>                           <C>        <C>        <C>    
   <C>      <C>       <C>
           Registered preferred 
             stock, Series S-1             185,000    150,000  
$356,222   35,622  $317,194   31,719
                                         =========  =========  
========  =======  ========  =======
           Common stock                  2,000,000  2,000,000  
$100,000   10,000  $100,000   10,000
                                         =========  =========  
========  =======  ========  =======
     </TABLE>

         The Company has authorized 10,000,000 total shares of Series 
S
         preferred stock, of which 185,000 and 150,000 shares of 
Series S-1
         were registered at September 30, 1995 and 1994, respectively. 
 The
         Company has the right, without further stockholder approval, 
to
         establish additional series of preferred stock with 
provisions
         different than those described below for the Series S-1 
preferred
         stock.

         Series S-1 preferred stock is cumulative and the holders 
thereof
         are entitled to receive monthly dividends at an annual rate 
equal
         to the highest of the "Treasury Bill Rate," the "Ten Year 
Constant
         Maturity Rate" or the "Twenty Year Constant Maturity Rate" as
         defined in the Series S-1 offering prospectus determined
         immediately prior to declaration date.  The board of 
directors
         may, at its sole option, declare a higher dividend rate; 
however,
         dividends shall be no less than 6% or greater than 14% per 
annum.

         Series S-1 preferred stock has a par value of $10 per share 
and
         was sold to the public at $100 per share.  Series S-1 shares 
are
         callable at the sole option of the board of directors at $100 
per
         share.
         <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     10. STOCKHOLDERS' EQUITY, CONTINUED:

         All preferred shares have liquidation preferences equal to 
their
         issue price, are non-voting and are senior to the common 
shares as
         to dividends.  All preferred stock dividends are based upon 
the
         original issue price.

         The payment of dividends by the Company's wholly-owned life
         insurance subsidiary is subject to certain restrictions 
imposed by
         statute.  Dividends can only be paid out of earned surplus. 
         Earned surplus includes accumulated statutory basis earnings 
of
         the Company and surplus arising from unrealized capital gains 
or
         the revaluation of assets.  The Idaho Insurance Code requires 
the
         life insurance subsidiary to maintain $1 million in common 
stock
         and $1 million in contributed surplus.


     11. RELATED-PARTY TRANSACTIONS:

         The Company receives accounting, data processing, contract
         servicing and other administrative services from 
Metropolitan. 
         Charges for these services were approximately $315,000 in 
fiscal
         1995, $58,000 in fiscal 1994 and $97,000 in fiscal 1993 and 
were
         assessed based on the number of real estate contracts and 
mortgage
         notes receivable serviced by Metropolitan on the Company's 
behalf. 
         Other indirect services provided by Metropolitan to the 
Company,
         such as management and regulatory compliance, were not 
directly
         charged to the Company.

         Management believes that these charges are reasonable and 
result
         in the reimbursement to Metropolitan of all significant 
direct
         expenses incurred on behalf of the Company and its 
subsidiaries. 
         Currently, management anticipates that Metropolitan will 
continue
         to supply these services in the future.

         The Company had the following related-party transactions with
         Metropolitan and affiliates during fiscal years 1995, 1994 
and
         1993:

                                          1995         1994         
1993
                                      -----------  -----------  ------
-----
         Real estate contracts and 
           mortgage notes receivable
           and other receivable 
           investments purchased 
           through Metropolitan or 
           affiliates                 $42,479,766  $19,495,714  
$15,423,706

         Contract acquisition costs 
           charged to the Company on 
           purchased real estate 
           contracts and mortgage 
           notes receivable, includ-
           ing management under-
           writing fees                 1,967,409      681,991      
243,414
                                      -----------  -----------  ------
-----
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     11. RELATED-PARTY TRANSACTIONS, CONTINUED:

                                          1995         1994         
1993
                                      -----------  -----------  ------
-----
         Total cost of real estate 
           contracts and mortgage 
           notes and other receivable 
           investments purchased 
           through Metropolitan       $44,447,175  $20,177,705  
$15,667,120
                                      ===========  ===========  
===========
         Real estate contracts and 
           mortgage notes receivable 
           and other receivable in-
           vestments sold to Metro-
           politan or its affiliates  $17,098,581  $10,122,544  $ 
4,044,423
         Gains on real estate con-
           tracts and mortgage notes
           receivable and other
           receivable investments 
           sold to Metropolitan or
           its affiliates                 335,469
         Service fees charged to 
           Metropolitan for property
           development assistance       1,250,017
         Commissions and service
           fees charged to Metro-
           politan on sale of 
           Metropolitan's debentures 
           and preferred stock          1,124,481
         Interest expense paid to 
           Metropolitan and its 
           affiliated companies                         11,684        
6,000
         Commissions capitalized as 
           deferred costs, paid to
           a Metropolitan affiliate 
           on sale of debentures           86,491      299,748      
276,060
         Commissions deducted from 
           additional paid-in capital,
           paid to a Metropolitan 
           affiliate on sale of 
           preferred stock                 13,249        7,552
         Dividends received on 
           Metropolitan's preferred
           stock investments              256,991

         Advances due Metropolitan or its affiliates in the amount of
         $1,960,104 and $267,735 at September 30, 1995 and 1994,
         respectively, represent real estate contracts and mortgage 
notes
         and related costs advanced by Metropolitan on behalf of the
         Company and are included in accounts payable.
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     11. RELATED-PARTY TRANSACTIONS, CONTINUED:

         The Company's employees are included in the Metropolitan 
Mortgage
         & Securities Co., Inc. Retirement Savings Plan (the Plan),
         authorized under Section 401(k) of the Tax Reform Act of 
1986, as
         amended.  This Plan is available to all employees over the 
age of
         21 upon completion of six months of service in which he or 
she has
         500 hours of service.  Employees may defer from 1% to 15% of 
their
         compensation in multiples of whole percentages.  The Company
         matches contributions equal to 25% of pre-tax contributions 
up to
         a maximum of 6% of compensation.  This match is made only if 
the
         Company has a net profit during the preceding fiscal year.  
No
         contribution was made by the Company during the years ended
         September 30, 1995, 1994 or 1993.


     12. ANNUITY RESERVES AND GUARANTY FUND ASSESSMENTS:

         Annuity reserves are based upon contractual amounts due the
         annuity holder including accrued interest.  Annuity contract
         interest rates ranged from 5.75% to 10.65% during the four-
month
         period ended September 30, 1995.

         All states in which the Company's insurance subsidiary 
operates
         have laws requiring solvent life insurance companies to pay
         assessments to protect the interests of policyholders of 
insolvent
         life insurance companies.  Assessments are levied on all 
member
         insurers in each state based on a proportionate share of 
premiums
         written by member insurers in the lines of business in which 
the
         insolvent insurers engaged.  A portion of these assessments 
can be
         offset against the payment of future premium taxes.  However,
         future changes in state laws could decrease the amount 
available
         for offset.

         The net amount expensed by the Company's life insurance 
subsidiary
         for guaranty fund assessments and amounts estimated to be 
assessed
         for the four-month period ended September 30, 1995 was 
$25,000. 
         The Company's estimate of these liabilities is based upon 
updated
         information from the National Organization of Life and Health
         Insurance Guaranty Associations regarding insolvencies 
occurring
         during the years 1990 through 1992.  These estimates are 
subject
         to future revisions based upon the ultimate resolution of the
         insolvencies and resultant losses.  The Company cannot 
reasonably
         estimate the additional effects, if any, upon its future
         assessments pending the resolution of the above-described
         insolvencies.  The Company does not believe that the amount 
of
         future assessments associated with known insolvencies after 
1992
         will be material to its financial condition or results of
         operations.  The amount of estimated future guaranty fund
         assessment has been recorded net of a 7% discount rate 
applied to
         the estimated payment term of approximately seven years.
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     13. STATUTORY ACCOUNTING (UNAUDITED):

         The life insurance subsidiary of the Company is required to 
file
         statutory financial statements with state insurance 
regulatory
         authorities.  Accounting principles used to prepare these
         statutory financial statements differ from generally accepted
         accounting principles (GAAP).  Selected differences between 
the
         statutory and the GAAP financial statements for the insurance
         subsidiary as of and for the four-month period ended 
September 30,
         1995 are as follows:

                                                   Statutory       
GAAP
                                                   ----------   ------
----
           Stockholders' equity at September 30,
             1995                                  $2,248,969   
$2,743,415

           Net income for the four-month period 
             from May 31, 1995 to September 30, 
             1995                                      43,574       
86,031

           Unassigned statutory surplus and 
             retained earnings at September 30,
             1995                                     248,969      
755,299


         Written approval was received from the Insurance Department 
of the
         state of Idaho to capitalize the underwriting fees charged to 
the
         Company by Metropolitan and to amortize these fees as an
         adjustment of the yield on acquired mortgage notes.  
Statutory
         accounting practices prescribed by Idaho do not describe the
         accounting required for this type of transaction.  As of 
September
         30, 1995, this permitted accounting practice increased 
statutory
         surplus by approximately $692,000 over what it would have 
been had
         prescribed practices disallowed this accounting treatment.


     14. SUPPLEMENTAL DISCLOSURES FOR STATEMENTS OF CASH FLOWS:

         Supplemental information on interest and income taxes paid 
during
         the years ended September 30, 1995, 1994 and 1993 is as 
follows:

                                         1995         1994         
1993
                                      ----------   ----------   ------
----

           Interest paid              $1,536,137   $1,298,248   $  
836,737
           Income taxes paid             128,190        3,907         
 101
     <PAGE>
     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED


     14. SUPPLEMENTAL DISCLOSURES FOR STATEMENTS OF CASH FLOWS, 
CONTINUED:

         Non-cash investing and financing activities of the Company 
during
         the years ended September 30, 1995, 1994 and 1993 are as 
follows:

                                         1995         1994         
1993
                                      ----------   ----------   ------
----
         Assumption of other debt 
           payable in conjunction
           with purchase of real 
           estate contracts and
           mortgage notes receivable  $  162,597   $   81,451   $  
235,374
         Assumption of other debt 
           payable in conjunction
           with acquisition of real 
           estate held for sale           15,528       63,650       
14,225
         Real estate held for sale 
           acquired through fore-
           closure                     1,232,732      437,448      
276,573
         Loans to facilitate the sale 
           of real estate                959,813       81,800      
205,492
         Exchange of the Company's
           preferred stock as full 
           consideration for Metro-
           politan preferred and 
           common stock                             3,022,425
         Additional paid-in capital 
           resulting from income tax
           benefits associated with 
           the change in tax 
           affiliation                                206,872
         Increase in assets and 
           liabilities associated
           with purchase of subsidi-
           aries:
             Investment securities     9,401,577
             Real estate contracts
               and mortgage notes
               receivable             32,080,899
             Real estate held for
               sale                      503,298
             Deferred costs            2,614,778
             Other assets                205,504
             Annuity reserves         44,558,959
             Accounts payable and 
               other liabilities       1,653,970



Item 9.	Changes in and Disagreements with Accountants on Accounting 
		and Financial Disclosure.

		N/A

	PART III

Item 10.	Directors and Executive Officers of Registrant.

		See "Executive Compensation" under Item 1.

Item 11.	Executive Compensation.

		See "Executive Compensation" under Item 1.

Item 12.	Security Ownership of Certain Beneficial Owners and 	
		Management.

		See "Principal Shareholders" under Item 1.

Item 13.	Certain Relationships and Related Transactions.

		See "Certain Transactions" under Item 1.



	PART IV

Item 14.    Exhibits, Financial Statement Schedules and Reports on 
Form 8-K.

	(a)	1.	Financial Statements
			Included in Part II, Item 8 of this report:

		Report of Independent Accountants
		Consolidated Balance Sheets at September 30, 1995, and 1994
		Consolidated Statements of Income for the Years Ended
			September 30, 1995, 1994 and 1993.
		Consolidated Statements of Stockholders' Equity for the
			years Ended September 30, 1995, 1994 and 1993
			Consolidated Statements of Cash Flows for the Years Ended 
	September 30, 1995, 1994 and 1993
		Notes to Consolidated Financial Statements

	(b)	2.	Financial Statements Schedules 

				Included in Part IV of this report:

				Report of Independent Accountants on Financial 
Statement Schedules.

				Schedule II		Valuation and Qualifying Accounts 
							and Reserves
				Schedule IV		Mortgage Loans on Real Estate
				Schedule XV	--	Summary of Investments other than
							Investments in Related Parties
				Schedule XVI	Summary Insurance Information


				Other Schedules are omitted because of the absence 
of conditions under which they are required or 
because the required information is given in the 
financial statements or notes thereto.

	(c)	3.	Exhibits 

	3(a).	Articles of Incorporation of the Company.  (Exhibit 3(a) 
to (Registration No. 33-36775).

	3(b).	Bylaws of the Company.  (Exhibit 3(b) to Registration 
No. 33-36775).

	4.	Reports on Form 8-k.  No reports on Form 8-K were filed 
in the quarter ended September 30, 1995.

	4(a).	Indenture dated as of November 15, 1990 between Summit 
and West One Bank, Idaho, N.A., Trustee. (Exhibit 4(a) 
to Registration No. 33-36775).

	4(b).	Amendment to Indenture dated as of November 15, 1990 
between Summit and West One Bank, Idaho, N.A., Trustee. 
(Exhibit 4(b) to Registration No. 33-36775).

	4(c).	Statement of Rights, Designations and Preferences of 
Variable Rate Cumulative Preferred Stock Series S-1.  
(Exhibit 4.c to Registration No. 33-57619)

	*4(d).	Statement of Rights, Designations and Preferences of 
		Variable Rate Cumulative Preferred Stock Series S-2

	*10(a).	Receivable Management, Acquisition and Service Agreement 
between Summit Securities, Inc. and Metropolitan 
Mortgage & Securities Co., Inc. dated September 9, 1994.

	*10(b).	Receivable Management, Acquisition and Service Agreement 
between Old Standard Life Insurance Company and 
Metropolitan Mortgage & Securities Co., Inc. dated 
December 31, 1994.

	11.	Computation of Earnings Per Common Share. (See Financial 
Statements.)

	*27.	Financial Data Schedule

*Filed herewith

	(d).	Reports on Form 8-K

		N/A


REPORT OF INDEPENDENT ACCOUNTANTS

ON FINANCIAL STATEMENT SCHEDULES

The Directors and Stockholder
Summit Securities, Inc.

Our report on the consolidated financial statements of Summit 
Securities, Inc. and subsidiaries is included in Item 8 herein.  In 
connection with our audits of such financial statements, we have also 
audited the related financial statement schedules listed in Item 14 of 
this Form 10-K.

In our opinion, these 1995 financial statement schedules, when 
considered in relation to the basic financial statements taken as a 
whole, present fairly, in all material respects, the information 
required to be included therein.


	/s/ COOPERS & LYBRAND

Coopers & Lybrand


Spokane, Washington
November 20, 1995


<PAGE>
SUMMIT SECURITIES, INC. AND SUBSIDIARIES          Schedule II
VALUATION AND QUALIFYING ACCOUNTS
YEARS ENDED SEPTEMBER 30, 1995, 1994, AND 1993

<TABLE>
<CAPTION>

			Additions	Additions	Deductions
	Balance at	from		(Reductions)	and	Balance
	Beginning	Acquisition	Charged to	Accounts		at end of
	of Year		of 		Costs and	Written		Year
			Subsidiaries	Expenses		Off
Description							(Recovery)

<S>	<C>		<C>		<C>		<C>		<C>
Allowances for 
Losses Deducted from
Real Estate Contracts
and Mortgage Notes
Receivable on
Balance Sheet
        1995	$250,572		$310,957		$103,950		$(99,651)		$765,130 
        1994		96,654		---		103,000		(50,918)	 	250,572
        1993		59,244		---		15,000		(22,410)		  96,654


Allowances for
Losses Deducted
from Real Estate
Held for Sale on 
Balance Sheet
        1995	$ 50,300		$11,591		$341,431		$312,183		$91,139
        1994		6,757		---		52,042		8,499		50,300
        1993		---		---		36,012		29,255		6,757

Allowance for 
Losses on Accounts and
Notes Receivable 
Deducted from
Other Assets on
Balance Sheet
         1995		$4,055		$320		$7,200		$11,167		$408
         1994		---		---		5,500		1,445		4,055
         1993		---		---		---		---		---
</TABLE>


<PAGE>
<PAGE>							Schedule IV
SUMMIT SECURITIES, INC.
MORTGAGE LOANS ON REAL ESTATE
September 30, 1995
<TABLE>
<CAPTION>



Real estate contracts and mortgage notes ("Receivables") are located throughout the United 
States. Approximately 22% of the face value of Summit's real estate contracts and mortgage 
notes receivable are collateralized by property located in the Pacific Northwest 
(Washington, Alaska, Idaho, Montana and Oregon), approximately 21% by property located in 
the Pacific Southwest (California, Nevada and Arizona), approximately 10% by property 
located in the Southeast (Florida, Georgia, North Carolina and South Carolina) and 
approximately 18% by property located in the Southwest (Texas, Louisiana and New Mexico).  
Less than 1% of the contracts are subject to variable interest rates.  Interest rate range 
from 0% to 20% with rate principally (87%) within the range of 7% to 12%.



	Number		Carrying	Delinquent	Number of
	of	Interest	Amount of	Principal 	Delinquent
Description	Receivables	Rates	Receivables	Amount	Receivables
	----------	--------	-----------	----------	-----------
RESIDENTIAL		Principally
<S>	<C>  	<C>      	<C>          	<C>         	
First Mortgage > $75,000	103	7%-12%	$10,750,067	$602,699	5
First Mortgage > $40,000	268	7%-12%	14,265,052	797,198	14
First Mortgage < $40,000	924	7%-12%	18,514,619	750,304	46
Second or Lower> $75,000	13	9%-12%	1,358,974	--	--
Second or Lower> $40,000	38	8%-12%	2,022,634	226,881	4
Second or Lower< $40,000	236	8%-11%	5,074,103	49,146	3

COMMERCIAL
First Mortgage > $75,000	24	9%-11%	2,757,580	--	--
First Mortgage > $40,000	17	8%-11%	975,626	--	--
First Mortgage < $40,000	35	8%-11%	739,072	16,855	2
Second or Lower> $75,000	8	9%-11%	1,087,947	--	--
Second or Lower> $40,000	9	9%-11%	537,240	--	--
Second or Lower< $40,000	15	9%-11%	383,437	--	--

FARM, LAND AND OTHER
First Mortgage > $75,000	7	10%-12%	1,395,643	--	--
First Mortgage > $40,000	13	8%-11%	648,812	--	--
First Mortgage < $40,000	65	9%-11%	1,111,652	14,526	1
Second or Lower> $75,000	1	0%	217,391	217,391	1
Second or Lower> $40,000	4	5%-12%	223,881	--	--
Second or Lower< $40,000	14	8%-10%	265,518	--	--

Unrealized discounts, net
of unamortized acquisition
costs, on Receivables
purchased at a discount			(2,614,937)

Accrued Interest Receivable			1,168,038

Allowance for Losses			(765,130)
					-----------	-----------
TOTAL			$ 60,117,219	$ 2,675,000 
					===========	===========

<FN>
The principal amount of Receivables subject to delinquent principal or interest is defined as being 
in arrears for more than three months. 
</TABLE> 

<TABLE>
<CAPTION>

The contractual maturities of the aggregate amounts of Receivables (face amount) are as follows:

	Residential	Commercial	Farm, Land, other	Total
	Principal	Principal	Principal	Principal
	--------	-------	--------	---------
<S>	<C>        	<C>        	<C>        	<C>         
October 1995 - September 1998	$6,935,045	$  1,524,281	$  1,494,409	$ 9,953,735
October 1998 - September 2000	5,091,289	1,210,602	434,447	6,736,338
October 2000 - September 2002	3,895,987	680,842	270,919	4,847,748
October 2002 - September 2005	6,444,955	731,814	440,803	7,617,572
October 2005 - September 2010	10,504,342	1,490,854	939,390	12,934,586
October 2010 - September 2015	6,142,677	192,069	123,111	6,457,857
October 2015 - Thereafter	12,971,154	650,440	159,818	13,781,412
	----------	----------	----------	----------
	$51,985,449	$6,480,902	$3,862,897	$62,329,248
	===========	==========	==========	==========	
</TABLE>


<PAGE>		Schedule IV Continued
SUMMIT SECURITIES, INC.
MORTGAGE LOANS ON REAL ESTATE
September 30, 1995
<TABLE>
<CAPTION>
	1995		1994		1993
<S>	<C>		<C>		<C>
Balance at beginning
  of period	$27,282,991	$19,527,225	$11,596,730
	----------	----------	----------

Additions during period
New Subsidiary Acquisition	32,080,899	---	---

New Receivable - Cash	26,130,804	20,177,705	15,667,120

Loans to facilitate the
  sale of real estate
  held - non cash	959,813	81,800	205,492

Assumption of other debt
  payable in conjunction with
  acquisition of new
  receivables - non cash	162,597	81,451	235,374

Increase in Accrued Interest	388,167	---	175,460
	---------	---------	---------
Total Additions	59,722,280	20,340,956	16,283,446
	----------	----------	----------
Deductions During Period

Collections of Principal
  cash	6,567,012	1,829,515	4,039,074

Cost of Receivables Sold	19,578,720	10,221,375	4,044,423

Foreclosures - non cash	1,083,277	272,959	232,044

Decrease in Accrued Interest	---	107,423	--

Discount Amortization	(544,558)	---	---

Increase in Allowances
  for Losses	203,601	153,918	37,410
	----------	----------	---------
Total Deductions	26,888,052	12,585,190	8,352,951
	----------	----------	---------
Balance at  End of Period	$60,117,219	$27,282,991	$19,527,225
	==========	==========	==========
</TABLE>


<PAGE>
SUMMIT SECURITIES, INC.	                      Schedule XV
SUMMARY OF INVESTMENTS
OTHER THAN INVESTMENTS IN RELATED PARTIES
September 30, 1995
<TABLE>
<CAPTION>

<S>				<C>			<C>			<C>
Column A			Column B		Column C		Column D
										Amount at Which
				Amortized		Market		Shown on Balance
				Cost			Value			Sheet

TYPE OF INVESTMENTS

FIXED MATURITIES
(Insurance Subsidiary)
Investments:
  U.S. Government and
  Government Agencies
    and Authorities	$5,229,949	$5,085,858	$5,229,949
  Corporate Bonds	3,039,592	2,985,607	3,039,592
	----------	----------	----------
TOTAL FIXED MATURITIES	$8,269,541	$8,071,465	$8,269,541
	==========	==========	==========
Real Estate Contracts
   and Mortgage Notes
     Receivable	$60,117,219		$60,117,219
	==========		==========
Other Investment
   Receivables	$16,895,902		$16,895,902
	==========		==========

Real Estate Held 
   for Sale	$   836,291		$   836,291
	==========		==========

Other Assets - 
   Policy Loans	$    13,122		$    13,122
	==========		==========

TOTAL INVESTMENTS	$86,132,075		$86,132,075
	==========		==========
</TABLE>


<PAGE>
SUMMIT SECURITIES, INC. AND SUBSIDIARIES             Schedule XVI
SUMMARY INSURANCE INFORMATION
AS OF FOUR MONTHS ENDED 
September 30, 1995
<TABLE>
<CAPTION>
		Future
		Policy
		Benefits		Other
	Deferred	Losses		Policy
	Policy	Claims		Claims and
	Acquisition	and Loss	Unearned	Benefits
	Cost	Expense	Premiums	Payable
<S>
September 30, 1995
	<C>		<C>		<C>		<C>
Annuities	$2,755,523	$49,559,589	$      -	$      --
	==========	===========	========	=========

<CAPTION>
			Benefits	Amortization
			Claims	of Deferred
		Net	Losses and	Policy	Other
  	 	  Premium	Investment	Settlement	Acquisition	Operating
  	  Revenue	Income	Expenses	Costs	Expenses
<S>
September 30, 1995
	<C>		<C>	<C>	<C>		<C>
Annuities	$14,179	$1,344,850	$1,034,082	$198,190	$73,715
	======	=========	=========	=======	======

</TABLE>


	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.

				SUMMIT SECURITIES, INC.

					/S/ TOM TURNER

				By_______________________________________________
					Tom Turner, President

	Pursuant to the requirements of the Securities Exchange Act of 1934, 
this report has been signed below by the following persons in the 
capacities and on the dates indicated:

Signature	Title	Date


/S/TOM TURNER
		
_________________________	President/Director/	________
Tom Turner	

/S/PHILIP SANDIFUR
		
_________________________	Vice President/Director	________
Philip Sandifur

/S/ GREG GORDON
		
_________________________	Secretary/Treasurer	________
 Greg Gordon	Director

/S/ERNEST JURDANA
		
_________________________Principal Financial	_________
Ernest Jurdana	Officer

/S/ ROBERT POTTER

________________________	Director	_________
Robert Potter