Exhibit 99.3
 
 
 SECURITIES AND EXCHANGE COMMISSION,
    
    
    ))Plaintiff,
    
    
    ))vs.
    
    
    )
    
    
    Case No. 02-CV-5713-JES)IBF COLLATERALIZED FINANCE CORP.,
    
    
    )IBF-VI SECURED LENDING CORP.,
    
    
    )INTERBANK FUNDING CORP., AND
    
    
    )SIMON A. HERSHON,
    
    
    ))Defendants.
    
    
    )
 SEVENTH INTERIM REPORT FOLLOWING EFFECTIVE DATE OF  JOINT LIQUIDATING PLAN WITH RESPECT TO THE DEBTORS




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Report IBF LLC Fund LLC Liquidating LLCs 1 Plan Seventh Interim Period 2
 I.EXECUTIVE SUMMARY
 A. Receipts and Disbursements
  US Mills
  
 1
    
    Debtors refers to InterBank Funding Corp. (IBF), IBF Collateralized
Finance Corp. (CFC), IBF VI-Secured Lending Corp. (SLC) and IBF Premier
Hotel Group, Inc., all debtors in chapter 11 cases pending in the Bankruptcy Court for this
District, In re InterBank Funding Corp. et al., No. 02-41590 (BRL) (Jointly
Administered). CFC and SLC are referred to collectively throughout this Report as the
Funds. ICA Trustee refers to Arthur Steinberg, in his capacity as
trustee of the Funds and their respective subsidiaries under the Investment Company Act of
1940, pursuant to this Courts appointment on December 5, 2002.2
    
    For a summary of earlier events, reference is made to the six prior interim reports
dated July 26, 2004, February 1, 2005, August 5, 2005, February 21, 2006, August 30, 2006 and
March 30, 2007, respectively. Copies of the reports and certain other documents are available
for printing or downloading at no cost at www.ibffund.com.




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3
 B. Proposed Distribution
  II.
PROGRESS REPORT FOR  SEVENTH INTERIM PERIOD
 A. Prior Distributions by Fund LLC 4
  
 
 
 3
    
    There will also be smaller collections from certain of the assets as further described
herein.4
    
    IBF LLC has no material assets and made no distributions to IBFs creditors; nor does it
appear that IBF LLC will recover any assets which could be distributed. Further, the Plan
requires that, before making any distributions to IBFs creditors, IBF LLC first repay amounts
advanced by the Funds during the chapter 11 cases to pay IBFs share of administrative
expenses. IBF LLC is not expected to make any distributions. Fund LLC is paying IBF LLCs
administrative costs but the work required is minimal and the cost is not material. 2




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
 
 
 
 
 
 B. Future Distributions
 i.e.
 3




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C. Administrative Matters
 1. Tax/Reporting
  2. Winddown/Dissolutions
  D. Investment Portfolios
 Exhibit D Preliminary Report
 1. Platform Companies
 a. I&BS/ABR
 I&BS NIM
 Duncan Capital
 4




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b. US Mills
 (1) Original Sale of US Mills to Sunset
 Sunset CapitalSource Sanders Holdings Chadmoore Moore Chadmoore Put
 (2) Sunset Defaults; Sale of US Mills to Susquehanna
  5




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Susquehanna
 (3) Litigation against Sunset, Sanders and Holdings
  (4) Litigation against Chadmoore, Moore and Radusch
 Radusch
 6




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PI Order
  7




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(a) Moores Contempt
 5
 
 5
    
    See (i) Motion for Sanctions Application for (I) Civil Contempt Order, (II) Shortened
Notice, and (III) Sanctions and Certain Related Relief(docket no. 57), dated May 14, 2007;
(ii) Reply In Support Of Contempt Relief Against Moore And Preliminary Response To Moores
Motion To Dismiss For Lack Of Subject Matter Jurisdiction, (docket no. 76), dated May 22,
2007; (iii) Memorandum Of Law In Opposition To Moores Motion To Alter Or Amend Contempt
Order, (docket no. 139), dated July 13, 2007; and (iv) Statement In Further Support Of Request
For An Order Adjudging Moore In Contempt And Imposing Sanctions, (docket no. 168), dated
September 11, 2007. 8




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(b) Summary Judgment
     9




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c. Capstone Capital LLC
  2. Operating Hotels
 a. Hilton Garden Inn
  3. Development Properties
 a. Anguilla
  1) Sale Efforts
 CBRE
 10




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2) Evans Litigation
  4. Securitization Assets
  E. Litigation/Arbitration
 1. Stein/1970 Asset Mgt
  11




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2. Outstanding Judgments See supra
 3. NASD Arbitrations
  F. Global Settlement with Hershon
  12




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III.
FINANCIAL CONDITION  OF LIQUIDATING LLCS
 Exhibit
A 6
 Dated:
    
    New York, New York
November 27, 2007
 IBF Liquidating LLC and
IBF Fund Liquidating LLCBy:
    /s/ Arthur J. SteinbergArthur J. Steinberg, ICA Trustee, asManager and Liquidating Agent Counsel to the ICA Trustee:
 
 
 6
    
    The amounts used on the balance sheet attached hereto reflect values assigned at Fund
LLCs inception and do not reflect current market value. Further, the amounts included in
Exhibit A are for purposes of this Report only, and should not be used for tax
accounting purposes. 13




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EXHIBIT A




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IBF Fund Liquidating, LLC
Balance Sheet
For the period ending October 31, 2007
(Unaudited)
 ASSETSCash
    
    
    
    
    
    
    2,985,994InvestmentsInvestment in Operating Businesses
    
    
    2,580,771Investment in Real Estate Development Properties
    
    
    4,525,358Investment in Securitization Assets
    
    
    74,988Total Investments
    
    
    
    
    
    
    7,181,117Miscellaneous Assets
    
    
    
    
    
    
    483,924Total Assets
    
    
    
    
    
    
    
    
    
    
    10,651,035LIABILITIESCurrent LiabilitiesAccounts Payable
    
    
    314,390Accrued Expenses-Professional Fees
    
    
    100,000Total Current Liabilities
    
    
    
    
    
    
    414,390EquityMember Interest in LLC
    
    
    12,044,784Net Income
    
    
    (1,808,139
    )Total Equity
    
    
    
    
    
    
    10,236,645Total Liabilities and Equity
    
    
    
    
    
    
    
    
    
    
    10,651,035