UNITED STATES
                          SECURITIES AND EXCHANGE COMMISSION
                               Washington D.C.  20549
          
                                      FORM 10-Q/A

(X)  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities 
Exchange Act of 1934 for the quarterly period ended September 30, 1996

                                           or

( )  Transition Report Pursuant to Section 13 or 15(d) of the Securities 
Exchange Act of 1934 for the transition period  from ________  to _______.


                      Commission File No.    0-24686


                      FIRST MERCHANTS ACCEPTANCE CORPORATION
               (Exact name of registrant as specified in its charter)

                                     Delaware
           (State or other jurisdiction of incorporation or organization)

                                    36-3759045
                         (I.R.S. Employer Identification Number)

                  570 Lake Cook Road, Suite 126, Deerfield, Illinois 60015
                        (Address of principal executive offices)

                                   (847) 948-9300
                   (Registrant's telephone number, including area code)
 
                                           N/A
(Former name, former address and former fiscal year, if changed since last 
report)


Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 
1934 during the preceding 12 months (or for such shorter period that the 
registrant was required to file such  reports), and (2) has been subject to 
such filing requirements for the past 90 days.        Yes (X)  No ( )

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

Common Stock $.01 par value, 6,525,519 shares outstanding as of November 1, 
1996.


<PAGE>

PART II - OTHER INFORMATION

Item 6.   (a)  Exhibits - See exhibit index following the  signature page.

          (b)  Reports on Form 8-K -  On September 26, 1996 the Company 
               filed an 8-K regarding an $117.5 million securitization.

               The following items were reported:
                        Item 2.    Acquisition or Disposition of
                                   Assets
                        Item 7.    Financial Statements and
                                   Exhibits
<PAGE>

                           SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.

                         FIRST MERCHANTS ACCEPTANCE CORPORATION

                         By:  /s/  Mitchell C. Kahn
                         Its: President and Chief Executive
                              Officer

                         By:  /s/  Thomas R. Ehmann
                         Its: Vice President and Chief Financial
                              Officer

Date: November 14, 1996


<PAGE>
                          INDEX OF EXHIBITS

Exhibit No.                 Description

10.1  Amended and Restated Trust Agreement, dated as of September 1, 1996, 
      between First Merchants Automobile Receivables Corporation II, as 
      Depositor and Chase Manhattan Bank Delaware as Owner Trustee, filed 
      with the Commission as Exhibit 1 to the Company's 8-K dated September 
      26, 1996, is incorporated herein by reference.

10.2  Sales and Servicing Agreement dated as of September 1, 1996 among First 
      Merchants Auto Trust 1996-B, as Issuer, First Merchants Auto Receivable
      Corporation II, as Seller, and First Merchants Acceptance Corporation, 
      as Servicer, and Harris Trust and Savings Bank, as Indenture Trustee,
      Collateral Agent and Backup Servicer, filed with the Commission as
      Exhibit 2 to the Company's 8-K dated September 26, 1996, is
      incorporated herein by reference.  

10.3  Receivables Purchase Agreement, dated as of September 1, 1996, between 
      First Merchants Acceptance Corporation, and First Merchants Auto
      Receivables Crporation II filed with the Commission as Exhibit 3 to
      the Company's 8-K dated September 26, 1996, is incorporated 
      herein by reference.

10.4  Indenture dated as of September 1,1996 between First Merchants Acceptance 
      Auto Trust 1996-B and Harris Trust and Savings Bank, as Indenture Trustee
      filed with the Commission as Exhibit 4 to the Company's 8-K dated 
      September 26, 1996, is incorporated herein by reference.

11.*  Statement Regarding Computation of Per Share Earnings filed 
      herewith.   

27.   Financial Data Schedule filed herewith.    

_______________________

*    Filed as an Exhibit to the Company's original Quarterly Report on 
     Form 10-Q for the quarter ended September 30, 1996.