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Table      of Contents

**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

**R**
**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15**
**(d**
**)      OF THE SECURITIES EXCHANGE ACT OF 1934 **

**£**
** **
**TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(**
**d**
**)      OF THE SECURITIES EXCHANGE ACT OF 1934**

**THE      MONEY TREE INC.**

| Georgia                                       |   | 58-2171386                         |
|-----------------------------------------------|--------|------------------------------------|
| State                or other jurisdiction of |   | (I.R.S.                Employer    |
| incorporation                or organization  |   | Identification                No.) |

| Large                  accelerated filer £ | Accelerated                  filer £ | Non-accelerated                  filer R |
|-------------------------------------------------|-------------------------------------------|------------------------------------------|

| Class                              | Outstanding                at June 25, 2006 |
|------------------------------------|---------------------------------------------|
| Class                A, Voting     | 2,686                Shares                 |
| Class                B, Non-Voting | 26,860                Shares                |

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**THE      MONEY TREE INC.**

**FORM      10-Q**

**June      25, 2006**

**TABLE      OF CONTENTS**

**Indexto      Financial Statements**

| **Item****                 No.** |                                                                                                                                       | **Page** |
|---------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                                  | PART                I -                FINANCIAL INFORMATION                                                                          |     |
| 1                                     | Financial                Statements                                                                                                        | 2        |
|                                  | Consolidated                Balance Sheets as of June 25, 2006                (Unaudited) and September 25, 2005                           | 2        |
|                                  | Consolidated                Statements of Operations for the three and nine                months ended June 25, 2006 and 2005 (Unaudited) | 3        |
|                                  | Consolidated                Statements of Cash Flows for the nine months                ended June 25, 2006 and 2005 (Unaudited) | 4        |
|                                  | Notes                to Consolidated Financial Statements                (Unaudited)                                                       | 6        |
| 2                                     | Management’s                Discussion and Analysis of Financial Condition                and Results of Operations                  | 19       |
| 3                                     | Quantitative                and Qualitative Disclosures About Market                Risk                                                   | 32       |
| 4                                     | Controls                and Procedures                                                                                                     | 32       |
|                                  | PART                II - OTHER INFORMATION                                                                                                 |     |
| 1                                     | Legal                Proceedings                                                                                                           | 33       |
| 1A                                    | Risk                Factors                                                                                                                | 33       |
| 2                                     | Unregistered                Sales of Equity Securities and Use of                Proceeds                                                  | 33       |
| 3                                     | Defaults                Upon Senior Securities                                                                                             | 33       |
| 4                                     | Submission                of Matters to a Vote of Security                Holders                                                          | 33       |
| 5                                     | Other                Information                                                                                                           | 33       |
| 6                                     | Exhibits                                                                                                                                   | 33       |

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**The            Money Tree Inc. and Subsidiaries**

**ConsolidatedBalance      Sheets**

FINANCIAL 

Financial 

|                                                                                                                                  |   | *June                  25, 2006* |        | *September                  25, 2005* |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|-------------|---------------------------------------|--------|
|                                                                                                                                  |   | (Unaudited)                      |        |                                  |   |
| Assets                                                                                                                                |   |                             |        |                                  |   |   |   |
|                                                                                                                                  |   |                             |        |                                  |   |   |   |
| Cash                  and cash equivalents                                                                                            |   | $                                | 10,451,329  |                                  | $      | 9,618,557 |   |
| Finance                  receivables, net                                                                                             |   |                             | 80,040,874  |                                  |   | 77,140,790 |   |
| Other                  receivables                                                                                                    |   |                             | 1,007,370   |                                  |   | 1,099,352 |   |
| Employee                  receivables                                                                                                 |   |                             | 2,764       |                                  |   | 5,465 |   |
| Inventory                                                                                                                             |   |                             | 2,412,624   |                                  |   | 2,401,631 |   |
| Property                  and equipment, net                                                                                          |   |                             | 4,746,606   |                                  |   | 4,849,775 |   |
| Deferred                  income taxes                                                                                                |   |                             | 1,923,000   |                                  |   | 1,985,000 |   |
| Intangible                  assets                                                                                                    |   |                             | 1,404,701   |                                  |   | 1,410,019 |   |
| Other                  assets                                                                                                         |   |                             | 1,416,150   |                                  |   | 1,236,318 |   |
| Total                  assets                                                                                                         |   | $                                | 103,405,418 |                                  | $      | 99,746,907 |   |
|                                                                                                                                  |   |                             |        |                                  |   |   |   |
|                                                                                                                                  |   |                             |        |                                  |   |   |   |
| Liabilities                  and Shareholders' Equity                                                                                 |   |                             |        |                                  |   |   |   |
|                                                                                                                                  |   |                             |        |                                  |   |   |   |
| Liabilities                                                                                                                           |   |                             |        |                                  |   |   |   |
| Accounts                  payable and other accrued liabilities                                                                       |   | $                                | 3,421,314   |                                  | $      | 4,409,495 |   |
| Accrued                  interest payable                                                                                             |   |                             | 10,834,079  |                                  |   | 9,476,662 |   |
| Senior                  debt                                                                                                          |   |                             | 626,057     |                                  |   | 1,185,546 |   |
| Senior                  subordinated debt                                                                                             |   |                             | 750,000     |                                  |   | 1,000,000 |   |
| Variable                  rate subordinated debentures                                                                                |   |                             | 77,217,472  |                                  |   | 68,904,753 |   |
| Demand                  notes                                                                                                         |   |                             | 8,681,881   |                                  |   | 12,867,207 |   |
| Junior                  subordinated debt, related parties                                                                            |   |                             | 440,000     |                                  |   | 800,000 |   |
| Total                  liabilities                                                                                                    |   |                             | 101,970,803 |                                  |   | 98,643,663 |   |
|                                                                                                                                  |   |                             |        |                                  |   |   |   |
|                                                                                                                                  |   |                             |        |                                  |   |   |   |
| Shareholders'                  equity                                                                                                 |   |                             |        |                                  |   |   |   |
| Common                  stock:                                                                                                        |   |                             |        |                                  |   |   |   |
| Class                    A voting, no par value; 500,000 shares authorized, 2,686                    shares issued and outstanding    |   |                             | 1,677,647   |                                  |   | 1,677,647 |   |
| Class                    B voting, no par value; 1,500,000 shares authorized,                    26,860 shares issued and outstanding |   |                             | -           |                                  |   | - |   |
| Accumulated                  deficit                                                                                                  |   |                             | (243,032    | )                                     |   | (574,403 | ) |
| Total                  shareholders' equity                                                                                           |   |                             | 1,434,615   |                                  |   | 1,103,244 |   |
| Total                  liabilities and shareholders' equity                                                                           |   | $                                | 103,405,418 |                                  | $      | 99,746,907 |   |

----

**The            Money Tree Inc. and Subsidiaries**

**ConsolidatedStatements      of Operations**

|                                                                                                                |   | *Three                  months ended June 25,* |       | *Nine                  months ended June 25,* |   |
|---------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|------------|-----------------------------------------------|--------|
|                                                                                                                |   | 2006                                           |       | 2005                                          |   | 2006 |   | 2005 |   |
|                                                                                                                |   | (Unaudited)                                    |       | (Unaudited)                                   |   |
|                                                                                                                |   |                                           |       |                                          |   |   |   |   |   |
| Interest                  income                                                                                    |   | $                                              | 4,696,523  |                                          | $      | 5,119,944 |   | $ | 14,988,543 |   | $ | 14,065,760 |   |
| Interest                  expense                                                                                   |   |                                           | (1,909,518 | )                                             |   | (1,599,700 | ) |   | (5,424,194 | ) |   | (4,686,549 | ) |
| Net                    interest income before provision for                    credit losses                        |   |                                           | 2,787,005  |                                          |   | 3,520,244 |   |   | 9,564,349 |   |   | 9,379,211 |   |
| Provision                  for credit losses                                                                        |   |                                           | (707,543   | )                                             |   | (666,690 | ) |   | (3,330,519 | ) |   | (1,514,731 | ) |
| Net                    interest income after provision for                    credit losses                         |   |                                           | 2,079,462  |                                          |   | 2,853,554 |   |   | 6,233,830 |   |   | 7,864,480 |   |
| Insurance                  commissions                                                                              |   |                                           | 2,766,762  |                                          |   | 2,771,752 |   |   | 8,563,691 |   |   | 7,500,474 |   |
| Commissions                    from motor club memberships from                    company owned by related parties |   |                                           | 504,006    |                                          |   | 430,276 |   |   | 1,480,561 |   |   | 1,253,074 |   |
| Income                    tax service agreement income from company                    owned by related parties     |   |                                           | -          |                                          |   | 4,000 |   |   | 83,034 |   |   | 161,739 |   |
| Other                  income                                                                                       |   |                                           | 545,772    |                                          |   | 544,969 |   |   | 1,698,697 |   |   | 1,885,249 |   |
| Net                  revenue before retail sales                                                                    |   |                                           | 5,896,002  |                                          |   | 6,604,551 |   |   | 18,059,813 |   |   | 18,665,016 |   |
|                                                                                                                |   |                                           |       |                                          |   |   |   |   |   |   |   |   |   |
| Retail                  sales                                                                                       |   |                                           | 4,024,054  |                                          |   | 3,559,271 |   |   | 14,041,922 |   |   | 11,202,353 |   |
| Cost                  of sales                                                                                      |   |                                           | (2,658,475 | )                                             |   | (2,219,192 | ) |   | (9,116,980 | ) |   | (6,905,888 | ) |
| Gross                  margin on retail sales                                                                       |   |                                           | 1,365,579  |                                          |   | 1,340,079 |   |   | 4,924,942 |   |   | 4,296,465 |   |
|                                                                                                                |   |                                           |       |                                          |   |   |   |   |   |   |   |   |   |
| Net                  revenues                                                                                       |   |                                           | 7,261,581  |                                          |   | 7,944,630 |   |   | 22,984,755 |   |   | 22,961,481 |   |
| Operating                  expenses                                                                                 |   |                                           |       |                                          |   |   |   |   |   |   |   |   |   |
| Personnel                  expense                                                                                  |   |                                           | (4,008,844 | )                                             |   | (3,859,559 | ) |   | (12,488,945 | ) |   | (11,476,460 | ) |
| Facilities                  expense                                                                                 |   |                                           | (911,394   | )                                             |   | (908,735 | ) |   | (2,880,332 | ) |   | (2,688,104 | ) |
| General                  and adminstrative expenses                                                                 |   |                                           | (762,323   | )                                             |   | (894,209 | ) |   | (2,446,182 | ) |   | (2,765,837 | ) |
| Other                  operating expenses                                                                           |   |                                           | (1,472,799 | )                                             |   | (1,716,594 | ) |   | (4,547,869 | ) |   | (5,120,838 | ) |
| Total                  operating expenses                                                                           |   |                                           | (7,155,360 | )                                             |   | (7,379,097 | ) |   | (22,363,328 | ) |   | (22,051,239 | ) |
| Net                  operating income                                                                               |   |                                           | 106,221    |                                          |   | 565,533 |   |   | 621,427 |   |   | 910,242 |   |
| Gain                    (loss) on sale of property and equipment                                                    |   |                                           | (13,687    | )                                             |   | 9,583 |   |   | (28,649 | ) |   | 34,583 |   |
|                                                                                                                |   |                                           |       |                                          |   |   |   |   |   |   |   |   |   |
| Income                  before income tax expense                                                                   |   |                                           | 92,534     |                                          |   | 575,116 |   |   | 592,778 |   |   | 944,825 |   |
| Income                  tax expense                                                                                 |   |                                           | (45,125    | )                                             |   | (200,938 | ) |   | (261,407 | ) |   | (283,853 | ) |
|                                                                                                                |   |                                           |       |                                          |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                         |   | $                                              | 47,409     |                                          | $      | 374,178 |   | $ | 331,371 |   | $ | 660,972 |   |
|                                                                                                                |   |                                           |       |                                          |   |   |   |   |   |   |   |   |   |
| Net                    income per common share, basic                    and diluted                                |   | $                                              | 1.60       |                                          | $      | 12.66 |   | $ | 11.22 |   | $ | 22.37 |   |
|                                                                                                                |   |                                           |       |                                          |   |   |   |   |   |   |   |   |   |
| Weighted                  average shares outstanding                                                                |   |                                           | 29,546     |                                          |   | 29,546 |   |   | 29,546 |   |   | 29,546 |   |

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**The            Money Tree Inc. and Subsidiaries**

**ConsolidatedStatements      of Cash Flows**

| *Nine                  months ended June 25,*                    |   | **2006**    |        | **2005** |   |
|------------------------------------------------------------------|--------|-------------|-------------|----------|--------|
|                                                             |   | (Unaudited) |        |
| Cash                  flows from operating activities            |   |        |        |     |   |   |   |
| Net                  income                                      |   | $           | 331,371     |     | $      | 660,972 |   |
| Adjustments                  to reconcile net income to net cash |   |        |        |     |   |   |   |
| provided                  by operating activities:               |   |        |        |     |   |   |   |
| Provision                  for credit losses                     |   |        | 3,330,519   |     |   | 1,514,731 |   |
| Depreciation                                                     |   |        | 715,179     |     |   | 666,641 |   |
| Amortization                                                     |   |        | 5,318       |     |   | 6,143 |   |
| Deferred                  income taxes                           |   |        | 62,000      |     |   | (582,000 | ) |
| Loss                  on sale of property and equipment          |   |        | 28,649      |     |   | (34,583 | ) |
| Change                  in assets and liabilities                |   |        |        |     |   |   |   |
| Other                  receivables                               |   |        | 91,982      |     |   | 2,476,069 |   |
| Employee                  receivables                            |   |        | 2,701       |     |   | 10,435 |   |
| Inventory                                                        |   |        | (10,993     | )        |   | (858,729 | ) |
| Other                  assets                                    |   |        | (179,832    | )        |   | (439,809 | ) |
| Accounts                  payable and other accrued liabilities  |   |        | (988,181    | )        |   | 1,077,870 |   |
| Accrued                  interest payable                        |   |        | 1,357,417   |     |   | 1,290,365 |   |
|                                                             |   |        |        |     |   |   |   |
| Net                  cash provided by operating activities       |   |        | 4,746,130   |     |   | 5,788,105 |   |
|                                                             |   |        |        |     |   |   |   |
| Cash                  flows from investing activities            |   |        |        |     |   |   |   |
| Loans                  originated                                |   |        | (63,836,708 | )        |   | (61,576,765 | ) |
| Loans                  repaid                                    |   |        | 57,606,105  |     |   | 52,459,032 |   |
| Purchase                  of property and equipment              |   |        | (767,264    | )        |   | (1,023,143 | ) |
| Proceeds                  from sale of property and equipment    |   |        | 126,605     |     |   | 55,730 |   |
|                                                             |   |        |        |     |   |   |   |
| Net                  cash used in investing activities           |   |        | (6,871,262  | )        |   | (10,085,146 | ) |
|                                                             |   |        |        |     |   |   |   |
| Cash                  flows from financing activities            |   |        |        |     |   |   |   |
| Net                  proceeds (repayments) on:                   |   |        |        |     |   |   |   |
| Senior                  debt                                     |   |        | (559,489    | )        |   | (756,503 | ) |
| Senior                  subordinated debt                        |   |        | (250,000    | )        |   | (700,000 | ) |
| Junior                  subordinated debt, related parties       |   |        | (360,000    | )        |   | - |   |
| Demand                  notes                                    |   |        | (4,185,326  | )        |   | 695,703 |   |
| Proceeds-variable                  rate subordinated debentures  |   |        | 17,069,535  |     |   | 13,293,672 |   |
| Payments-variable                  rate subordinated debentures  |   |        | (8,756,816  | )        |   | (7,996,399 | ) |
| Net                  cash provided by financing activities       |   |        | 2,957,904   |     |   | 4,536,473 |   |
|                                                             |   |        |        |     |   |   |   |
| Net                  change in cash and cash equivalents         |   |        | 832,772     |     |   | 239,432 |   |
|                                                             |   |        |        |     |   |   |   |
| Cash                  and cash equivalents, beginning of period  |   |        | 9,618,557   |     |   | 8,373,114 |   |
| Cash                  and cash equivalents, end of period        |   | $           | 10,451,329  |     | $      | 8,612,546 |   |

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**The            Money Tree Inc. and Subsidiaries**

**Consolidated      Statements of Cash Flows (continued)**

| *Nine                  months ended June 25,*     |   | 2006        |      | 2005   |   |
|---------------------------------------------------|--------|-------------|-----------|--------|--------|
|                                              |   | (Unaudited) |      |
|                                              |   |        |      |   |   |
| SUPPLEMENTAL                  DISCLOSURE OF       |   |        |      |   |   |   |   |
| CASH                  FLOW INFORMATION:           |   |        |      |   |   |   |   |
|                                              |   |        |      |   |   |   |   |
| Cash                  paid during the period for: |   |        |      |   |   |   |   |
| Interest                                          |   | $           | 4,066,777 |   | $      | 3,396,184 |   |
| Income                  taxes                     |   | $           | 1,228,332 |   | $      | 356,560 |   |

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**The            Money Tree Inc. and Subsidiaries**

**Notes              to Consolidated Financial Statements              (Unaudited)**

**NOTE1      - BASIS OF PRESENTATION**

**NOTE      2 - NATURE OF BUSINESS**

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**The            Money Tree Inc. and Subsidiaries**

**Notes              to Consolidated Financial Statements              (Unaudited)**

**NOTE      3 - RECENT ACCOUNTING PRONOUNCEMENTS**

*Accounting      for Certain Loans or Debt Securities Acquired in a Transfer*

*Accounting      Changes and Error Corrections”. *
*Accounting      Changes”*
*Reporting      Accounting Changes in Interim Financial Statements”.*

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**The            Money Tree Inc. and Subsidiaries**

**Notes              to Consolidated Financial Statements              (Unaudited)**

**NOTE      4 - FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES**

|                                                                                          |   | June                  25, 2006 |        | September                  25, 2005 |   |
|-----------------------------------------------------------------------------------------------|--------|--------------------------------|-------------|-------------------------------------|--------|
|                                                                                          |   | (Unaudited)                    |        |                                |   |
|                                                                                          |   |                           |        |                                |   |
| Finance                  receivables, direct consumer                                         |   | $                              | 53,348,597  |                                | $      | 53,762,475 |   |
| Finance                  receivables, consumer sales finance                                  |   |                           | 11,636,843  |                                |   | 9,661,474 |   |
| Finance                  receivables, auto sales finance                                      |   |                           | 31,491,728  |                                |   | 29,765,603 |   |
| Total                  gross finance receivables                                              |   |                           | 96,477,168  |                                |   | 93,189,552 |   |
| Unearned                  insurance commissions                                               |   |                           | (3,430,368  | )                                   |   | (3,741,947 | ) |
| Unearned                  finance charges                                                     |   |                           | (11,363,387 | )                                   |   | (10,715,230 | ) |
| Accrued                  interest receivable                                                  |   |                           | 1,130,400   |                                |   | 1,180,436 |   |
| Unearned                  discounts                                                           |   |                           | (9,475      | )                                   |   | (140,207 | ) |
| Finance                    receivables, before allowance                    for credit losses |   |                           | 82,804,338  |                                |   | 79,772,604 |   |
| Allowance                  for credit losses                                                  |   |                           | (2,763,464  | )                                   |   | (2,631,814 | ) |
| Finance                  receivables, net                                                     |   | $                              | 80,040,874  |                                | $      | 77,140,790 |   |

|                                          |   | As                  of and for the |       | As                  of and for the  |   | As                  of and for the |   |
|-----------------------------------------------|--------|------------------------------------|------------|-------------------------------------|--------|------------------------------------|--------|
|                                          |   | nine                  months ended |       | year                  ended         |   | nine                  months ended |   |
|                                          |   | June                  25, 2006     |       | September                  25, 2005 |   | June                  25, 2005     |   |
|                                          |   | (Unaudited)                        |       |                                |   | (Unaudited)                        |   |
|                                          |   |                               |       |                                |   |                               |   |
| Beginning                  balance            |   | $                                  | 2,631,814  |                                | $      | 2,055,402                          |   | $ | 2,055,402 |   |
|                                          |   |                               |       |                                |   |                               |   |   |   |   |
| Provisions                  for credit losses |   |                               | 3,330,519  |                                |   | 2,767,868                          |   |   | 1,514,731 |   |
|                                          |   |                               |       |                                |   |                               |   |   |   |   |
| Charge-offs                                   |   |                               | (3,315,487 | )                                   |   | (2,300,592                         | )      |   | (1,361,553 | ) |
|                                          |   |                               |       |                                |   |                               |   |   |   |   |
| Recoveries                                    |   |                               | 115,471    |                                |   | 104,404                            |   |   | 69,602 |   |
|                                          |   |                               |       |                                |   |                               |   |   |   |   |
| Other                                         |   |                               | 1,147      |                                |   | 4,732                              |   |   | (17,071 | ) |
|                                          |   |                               |       |                                |   |                               |   |   |   |   |
| Ending                  balance               |   | $                                  | 2,763,464  |                                | $      | 2,631,814                          |   | $ | 2,261,111 |   |

----

**The            Money Tree Inc. and Subsidiaries**

**Notes              to Consolidated Financial Statements              (Unaudited)**

**NOTE      5 - INVENTORY**

|                                              |   | June                  25, 2006 |      | September                  25, 2005 |   |
|---------------------------------------------------|--------|--------------------------------|-----------|-------------------------------------|--------|
|                                              |   | (Unaudited)                    |      |                                |   |
|                                              |   |                           |      |                                |   |
| Used                  automobiles                 |   | $                              | 1,915,065 |                                | $      | 1,900,894 |   |
| Home                  furnishings and electronics |   |                           | 497,559   |                                |   | 500,737 |   |
| Total                  inventory                  |   | $                              | 2,412,624 |                                | $      | 2,401,631 |   |

**NOTE      6 - ACCOUNTS PAYABLE AND OTHER ACCRUED LIABILITIES**

|                                                                  |   | June                  25, 2006 |      | September                  25, 2005 |   |
|-----------------------------------------------------------------------|--------|--------------------------------|-----------|-------------------------------------|--------|
|                                                                  |   | (Unaudited)                    |      |                                |   |
|                                                                  |   |                           |      |                                |   |
| Accounts                  payable                                     |   | $                              | 148,072   |                                | $      | 182,994 |   |
| Insurance                  payable, loan related                      |   |                           | 616,753   |                                |   | 751,317 |   |
| Accrued                  payroll                                      |   |                           | 521,356   |                                |   | 578,370 |   |
| Accrued                  payroll taxes                                |   |                           | 40,650    |                                |   | 44,560 |   |
| Money                  orders                                         |   |                           | 683,158   |                                |   | 823,585 |   |
| Sales                  tax payable                                    |   |                           | 1,257,131 |                                |   | 1,118,648 |   |
| Other                  liabilities                                    |   |                           | 154,194   |                                |   | 910,021 |   |
| Total                  accounts payable and other accrued liabilities |   | $                              | 3,421,314 |                                | $      | 4,409,495 |   |

----

**The            Money Tree Inc. and Subsidiaries**

**Notes              to Consolidated Financial Statements              (Unaudited)**

**NOTE      7 - DEBT**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | June                  25, 2006 |    | September                  25, 2005 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|-------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | (Unaudited)                    |    |                                |   |
| Senior                  debt: due to banks and commercial finance companies, collateralized                  by                  inventory and certain automotive equipment, and certain notes include                  personal guarantees of a shareholder, interest at 4.49% to 8.25%                  (some                  variable), due 2006 to 2019. The carrying values of the collateral                  at June                  25, 2006 and September 25, 2005 were $2,762,813 and $2,960,186,                  respectively. |   | $                              | 626,057 |                                | $      | 1,185,546 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                           |    |                                |   |   |   |
| Total                  senior debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                           | 626,057 |                                |   | 1,185,546 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                           |    |                                |   |   |   |
| Senior                  subordinated debt: due to credit insurance company, unsecured,                  guaranteed                  by a Company shareholder, interest at prime (8.0% and 4.5% at June                  25,                  2006 and September 25, 2005, respectively) plus 1% (8% floor, 12%                  ceiling), interest payable quarterly, principal due August 5,                  2007.                                                                                                                         |   |                           | 750,000 |                                |   | 1,000,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                           |    |                                |   |   |   |
| Total                  senior subordinated debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                           | 750,000 |                                |   | 1,000,000 |   |

----

**The            Money Tree Inc. and Subsidiaries**

**Notes              to Consolidated Financial Statements              (Unaudited)**

**NOTE      7 - DEBT (continued)**

|                                                                                                                                                                                                                                                              |   | June                  25, 2006 |       | September                  25, 2005 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|------------|-------------------------------------|--------|
|                                                                                                                                                                                                                                                              |   | (Unaudited)                    |       |                                |   |
| Variable                  rate subordinated debentures issued by The Money Tree of Georgia                  Inc.: due                  to individuals, unsecured, interest at 4.25% to 9.6%, due at various                  dates                  through 2009. |   |                           | 67,017,025 |                                |   | 68,904,753 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                                |   |   |   |
| Variable                  rate subordinated debentures issued by The Money Tree Inc.: due                  to                  individuals, unsecured, interest at 6.0% to 8.7%, due at various                  dates                  through 2010.             |   |                           | 10,200,447 |                                |   | - |   |
| Total                  subordinated debentures                                                                                                                                                                                                                    |   |                           | 77,217,472 |                                |   | 68,904,753 |   |
| Demand                  notes issued by The Money Tree of Georgia Inc.: due to individuals,                  unsecured, interest at 4.25% to 5.0%, due on demand.                                                                                                 |   |                           | 2,813,343  |                                |   | 12,867,207 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                                |   |   |   |
| Demand                  notes issued by The Money Tree Inc.: due to individuals, unsecured,                  interest at 4.25% to 5.0%, due on demand.                                                                                                            |   |                           | 5,868,538  |                                |   | - |   |
| Total                  demand notes                                                                                                                                                                                                                               |   |                           | 8,681,881  |                                |   | 12,867,207 |   |
| Junior                  subordinated debt, related parties: due to a shareholder, interest                  rate at                  8%. The balance was paid in April 2006.                                                                                      |   |                           | -          |                                |   | 300,000 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                                |   |   |   |
| Junior                  subordinated debt, related parties: due to a shareholder, interest                  rate at                  8% due June 28, 2008.                                                                                                        |   |                           | 440,000    |                                |   | 500,000 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                                |   |   |   |
| Total                  junior subordinated debt, related parties                                                                                                                                                                                                  |   |                           | 440,000    |                                |   | 800,000 |   |
|                                                                                                                                                                                                                                                              |   |                           |       |                                |   |   |   |
| Total                  debt                                                                                                                                                                                                                                       |   | $                              | 87,715,410 |                                | $      | 84,757,506 |   |

**NOTE      8 - INCOME TAXES**

----

**The            Money Tree Inc. and Subsidiaries**

**Notes              to Consolidated Financial Statements              (Unaudited)**

**NOTE      9 - RELATED PARTY TRANSACTIONS**

** **

**NOTE      10- CONTINGENT LIABILITIES**

**NOTE      11 - DISCRETIONARY BONUSES**

----

**The            Money Tree Inc. and Subsidiaries**

**Notes              to Consolidated Financial Statements              (Unaudited)**

**NOTE      12 - NET INCOME PER COMMON SHARE**

**NOTE      13 - SEGMENT FINANCIAL INFORMATION**

----

**The            Money Tree Inc. and Subsidiaries**

**Notes              to Consolidated Financial Statements              (Unaudited)**

| ***Nine                  months ended***                        |   | Consumer                  Finance     |    | Automotive                  Finance   |   | Total    |   |
|-----------------------------------------------------------------|--------|---------------------------------------|---------|---------------------------------------|--------|----------|--------|
| ***June                  25, 2006***                            |   | &                  Sales Division |    | &                  Sales Division |   | Segments |   |
| **In                  Thousands**                               |   | (Unaudited)                           |    |
|                                                            |   |                                  |    |                                  |   |     |   |
| Net                  revenues before retail sales               |   | $                                     | 17,859  |                                  | $      | 201      |   | $ | 18,060 |   |
|                                                            |   |                                  |    |                                  |   |     |   |   |   |   |
| Gross                  margin on retail sales                   |   |                                  | 1,933   |                                  |   | 2,992    |   |   | 4,925 |   |
|                                                            |   |                                  |    |                                  |   |     |   |   |   |   |
| Segment                  operating expenses                     |   |                                  | (18,914 | )                                     |   | (3,450   | )      |   | (22,364 | ) |
| **Segment                  operating profit (loss)**            |   | $                                     | 878     |                                  | $      | (257     | )      | $ | 621 |   |
|                                                            |   |                                  |    |                                  |   |     |   |   |   |   |
|                                                            |   |                                  |    |                                  |   |     |   |   |   |   |
| **June                  25, 2006**                              |   |                                  |    |                                  |   |     |   |   |   |   |
| **In                  Thousands**                               |   |                                  |    |                                  |   |     |   |   |   |   |
| **Assets**                                                      |   |                                  |    |                                  |   |     |   |   |   |   |
| **Total                  segment assets**                       |   | $                                     | 64,788  |                                  | $      | 29,335   |   | $ | 94,123 |   |
|                                                            |   |                                  |    |                                  |   |     |   |   |   |   |
| **RECONCILIATION:**                                             |   |                                  |    |                                  |   |     |   |   | **6/25/2006** |   |
|                                                            |   |                                  |    |                                  |   |     |   |   | (Thousands) |   |
| **Assets:**                                                     |   |                                  |    |                                  |   |     |   |   |   |   |
| Total                  assets for reportable segments           |   |                                  |    |                                  |   |     |   | $ | 94,123 |   |
|                                                            |   |                                  |    |                                  |   |     |   |   |   |   |
| Cash                  and cash equivalents at corporate level   |   |                                  |    |                                  |   |     |   |   | 3,580 |   |
| Other                  receivables at corporate level           |   |                                  |    |                                  |   |     |   |   | 1,007 |   |
| Employee                  receivables at corporate level        |   |                                  |    |                                  |   |     |   |   | 3 |   |
| Property                  and equipment, net at corporate level |   |                                  |    |                                  |   |     |   |   | 1,353 |   |
| Deferred                  income taxes at corporate level       |   |                                  |    |                                  |   |     |   |   | 1,923 |   |
| Other                  assets at corporate level                |   |                                  |    |                                  |   |     |   |   | 1,416 |   |
| Consolidated                  Assets                            |   |                                  |    |                                  |   |     |   | $ | 103,405 |   |

----

**The            Money Tree Inc. and Subsidiaries**

**Notes              to Consolidated Financial Statements              (Unaudited)**

|                                                            |   |                                  |    |                                  |   |     |   |
|-----------------------------------------------------------------|--------|---------------------------------------|---------|---------------------------------------|--------|----------|--------|
|                                                            |   |                                  |    |                                  |   |     |   |
| ***Nine                  months ended***                        |   | Consumer                  Finance     |    | Automotive                  Finance   |   | Total    |   |
| ***June                  25, 2005***                            |   | &                  Sales Division |    | &                  Sales Division |   | Segments |   |
| **In                  Thousands**                               |   | (Unaudited)                           |    |
|                                                            |   |                                  |    |                                  |   |     |   |
| Net                  revenues before retail sales               |   | $                                     | 17,865  |                                  | $      | 800      |   | $ | 18,665 |   |
|                                                            |   |                                  |    |                                  |   |     |   |   |   |   |
| Gross                  margin on retail sales                   |   |                                  | 2,167   |                                  |   | 2,129    |   |   | 4,296 |   |
|                                                            |   |                                  |    |                                  |   |     |   |   |   |   |
| Segment                  operating expenses                     |   |                                  | (19,053 | )                                     |   | (2,998   | )      |   | (22,051 | ) |
| **Segment                  operating profit (loss)**            |   | $                                     | 979     |                                  | $      | (69      | )      | $ | 910 |   |
|                                                            |   |                                  |    |                                  |   |     |   |   |   |   |
|                                                            |   |                                  |    |                                  |   |     |   |   |   |   |
| **June                  25, 2005**                              |   |                                  |    |                                  |   |     |   |   |   |   |
| **In                  Thousands**                               |   |                                  |    |                                  |   |     |   |   |   |   |
| **Assets**                                                      |   |                                  |    |                                  |   |     |   |   |   |   |
| **Total                  segment assets**                       |   | $                                     | 60,545  |                                  | $      | 28,856   |   | $ | 89,401 |   |
|                                                            |   |                                  |    |                                  |   |     |   |   |   |   |
| **RECONCILIATION:**                                             |   |                                  |    |                                  |   |     |   |   | **6/25/2005** |   |
|                                                            |   |                                  |    |                                  |   |     |   |   | (Thousands) |   |
| **Assets:**                                                     |   |                                  |    |                                  |   |     |   |   |   |   |
| Total                  assets for reportable segments           |   |                                  |    |                                  |   |     |   | $ | 89,401 |   |
|                                                            |   |                                  |    |                                  |   |     |   |   |   |   |
| Cash                  and cash equivalents at corporate level   |   |                                  |    |                                  |   |     |   |   | 68 |   |
| Other                  receivables at corporate level           |   |                                  |    |                                  |   |     |   |   | 2,428 |   |
| Employee                  receivables at corporate level        |   |                                  |    |                                  |   |     |   |   | 8 |   |
| Property                  and equipment, net at corporate level |   |                                  |    |                                  |   |     |   |   | 1,374 |   |
| Deferred                  income taxes at corporate level       |   |                                  |    |                                  |   |     |   |   | 1,842 |   |
| Other                  assets at corporate level                |   |                                  |    |                                  |   |     |   |   | 1,209 |   |
| Consolidated                  Assets                            |   |                                  |    |                                  |   |     |   | $ | 96,330 |   |

----

**The            Money Tree Inc. and Subsidiaries**

**Notes              to Consolidated Financial Statements              (Unaudited)**

| ***Three                  months ended***                       |   | Consumer                  Finance     |   | Automotive                  Finance   |   | Total    |   |
|-----------------------------------------------------------------|--------|---------------------------------------|--------|---------------------------------------|--------|----------|--------|
| ***June                  25, 2006***                            |   | &                  Sales Division |   | &                  Sales Division |   | Segments |   |
| **In                  Thousands**                               |   | (Unaudited)                           |   |
|                                                            |   |                                  |   |                                  |   |     |   |
| Net                  revenues before retail sales               |   | $                                     | 5,983  |                                  | $      | (87      | )      | $ | 5,896 |   |
|                                                            |   |                                  |   |                                  |   |     |   |   |   |   |
| Gross                  margin on retail sales                   |   |                                  | 572    |                                  |   | 794      |   |   | 1,366 |   |
|                                                            |   |                                  |   |                                  |   |     |   |   |   |   |
| Segment                  operating expenses                     |   |                                  | (6,129 | )                                     |   | (1,027   | )      |   | (7,156 | ) |
| **Segment                  operating profit (loss)**            |   | $                                     | 426    |                                  | $      | (320     | )      | $ | 106 |   |
|                                                            |   |                                  |   |                                  |   |     |   |   |   |   |
|                                                            |   |                                  |   |                                  |   |     |   |   |   |   |
| **June                  25, 2006**                              |   |                                  |   |                                  |   |     |   |   |   |   |
| **In                  Thousands**                               |   |                                  |   |                                  |   |     |   |   |   |   |
| **Assets**                                                      |   |                                  |   |                                  |   |     |   |   |   |   |
| **Total                  segment assets**                       |   | $                                     | 64,788 |                                  | $      | 29,335   |   | $ | 94,123 |   |
|                                                            |   |                                  |   |                                  |   |     |   |   |   |   |
| **RECONCILIATION:**                                             |   |                                  |   |                                  |   |     |   |   | **6/25/2006** |   |
|                                                            |   |                                  |   |                                  |   |     |   |   | (Thousands)  |   |
| **Assets:**                                                     |   |                                  |   |                                  |   |     |   |   |   |   |
| Total                  assets for reportable segments           |   |                                  |   |                                  |   |     |   | $ | 94,123 |   |
|                                                            |   |                                  |   |                                  |   |     |   |   |   |   |
| Cash                  and cash equivalents at corporate level   |   |                                  |   |                                  |   |     |   |   | 3,580 |   |
| Other                  receivables at corporate level           |   |                                  |   |                                  |   |     |   |   | 1,007 |   |
| Employee                  receivables at corporate level        |   |                                  |   |                                  |   |     |   |   | 3 |   |
| Property                  and equipment, net at corporate level |   |                                  |   |                                  |   |     |   |   | 1,353 |   |
| Deferred                  income taxes at corporate level       |   |                                  |   |                                  |   |     |   |   | 1,923 |   |
| Other                  assets at corporate level                |   |                                  |   |                                  |   |     |   |   | 1,416 |   |
| Consolidated                  Assets                            |   |                                  |   |                                  |   |     |   | $ | 103,405 |   |

----

**The            Money Tree Inc. and Subsidiaries**

**Notes              to Consolidated Financial Statements              (Unaudited)**

| ***Three                  months ended***                       |   | Consumer                  Finance     |   | Automotive                  Finance   |   | Total    |   |
|-----------------------------------------------------------------|--------|---------------------------------------|--------|---------------------------------------|--------|----------|--------|
| ***June                  25, 2005***                            |   | &                  Sales Division |   | &                  Sales Division |   | Segments |   |
| **In                  Thousands**                               |   | (Unaudited)                           |   |
|                                                            |   |                                  |   |                                  |   |     |   |
| Net                  revenues before retail sales               |   | $                                     | 6,108  |                                  | $      | 497      |   | $ | 6,605 |   |
|                                                            |   |                                  |   |                                  |   |     |   |   |   |   |
| Gross                  margin on retail sales                   |   |                                  | 688    |                                  |   | 652      |   |   | 1,340 |   |
|                                                            |   |                                  |   |                                  |   |     |   |   |   |   |
| Segment                  operating expenses                     |   |                                  | (6,453 | )                                     |   | (926     | )      |   | (7,379 | ) |
| **Segment                  operating profit**                   |   | $                                     | 343    |                                  | $      | 223      |   | $ | 566 |   |
|                                                            |   |                                  |   |                                  |   |     |   |   |   |   |
|                                                            |   |                                  |   |                                  |   |     |   |   |   |   |
| **June                  25, 2005**                              |   |                                  |   |                                  |   |     |   |   |   |   |
| **In                  Thousands**                               |   |                                  |   |                                  |   |     |   |   |   |   |
| **Assets**                                                      |   |                                  |   |                                  |   |     |   |   |   |   |
| **Total                  segment assets**                       |   | $                                     | 60,545 |                                  | $      | 28,856   |   | $ | 89,401 |   |
|                                                            |   |                                  |   |                                  |   |     |   |   |   |   |
| **RECONCILIATION:**                                             |   |                                  |   |                                  |   |     |   |   | **6/25/2005** |   |
|                                                            |   |                                  |   |                                  |   |     |   |   | (Thousands) |   |
| **Assets:**                                                     |   |                                  |   |                                  |   |     |   |   |   |   |
| Total                  assets for reportable segments           |   |                                  |   |                                  |   |     |   | $ | 89,401 |   |
|                                                            |   |                                  |   |                                  |   |     |   |   |   |   |
| Cash                  and cash equivalents at corporate level   |   |                                  |   |                                  |   |     |   |   | 68 |   |
| Other                  receivables at corporate level           |   |                                  |   |                                  |   |     |   |   | 2,428 |   |
| Employee                  receivables at corporate level        |   |                                  |   |                                  |   |     |   |   | 8 |   |
| Property                  and equipment, net at corporate level |   |                                  |   |                                  |   |     |   |   | 1,374 |   |
| Deferred                  income taxes at corporate level       |   |                                  |   |                                  |   |     |   |   | 1,842 |   |
| Other                  assets at corporate level                |   |                                  |   |                                  |   |     |   |   | 1,209 |   |
| Consolidated                  Assets                            |   |                                  |   |                                  |   |     |   | $ | 96,330 |   |

----

**The            Money Tree Inc. and Subsidiaries**

**Notes              to Consolidated Financial Statements              (Unaudited)**

**NOTE      14 - DEBT REGISTRATIONS**

**NOTE      15 - VOTING COMMON STOCK SALE**

----

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

***Forward-Looking      Statements***

***Overview***

----

| ***Description                  of Loans and Contracts***         |   |                                                                                    |       |                                                                                   |   |       |   |     |       |
|-------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------|--------|------------|--------|----------|------------|
|                                                              |   | **As                  of, or for, the Three****Months                  Ended June 25,** |       | **As                  of, or for, the Nine****Months                  Ended June 25,** |   |
|                                                              |   | **2006**                                                                                |       | **2005**                                                                               |   | **2006**   |   | **2005** |       |
| ***Direct                  Consumer Loans:***                     |   |                                                                                    |       |                                                                                   |   |       |   |     |       |   |   |   |   |
| Number                  of Loans Made to New Borrowers            |   |                                                                                    | 5,830      |                                                                                   |   | 6,988      |   |     | 16,088     |   |   | 19,051 |   |
| Number                  of Loans Made to Former Borrowers         |   |                                                                                    | 13,940     |                                                                                   |   | 11,811     |   |     | 40,283     |   |   | 38,564 |   |
| Number                  of Loans Made to Existing Borrowers       |   |                                                                                    | 24,061     |                                                                                   |   | 25,197     |   |     | 71,843     |   |   | 72,985 |   |
| Total                  Number of Loans Made                       |   |                                                                                    | 43,831     |                                                                                   |   | 43,996     |   |     | 128,214    |   |   | 130,600 |   |
| Total                  Volume of Loans Made                       |   | $                                                                                       | 19,384,729 |                                                                                   | $      | 24,205,397 |   | $        | 63,447,290 |   | $ | 64,914,687 |   |
| Average                  Size of Loans Made                       |   | $                                                                                       | 442        |                                                                                   | $      | 550        |   | $        | 495        |   | $ | 497 |   |
| Number                  of Loans Outstanding                      |   |                                                                                    | 70,785     |                                                                                   |   | 70,019     |   |     | 70,785     |   |   | 70,019 |   |
| Total                  of Loans Outstanding*                      |   | $                                                                                       | 48,117,617 |                                                                                   | $      | 46,103,780 |   | $        | 48,117,617 |   | $ | 46,103,780 |   |
| Percent                  of Loans Outstanding                     |   |                                                                                    | 52.73      | %                                                                                      |   | 54.45      | %      |     | 52.73      | % |   | 54.45 | % |
|                                                              |   |                                                                                    |       |                                                                                   |   |       |   |     |       |   |   |   |   |
| Average                  Balance on Outstanding Loans             |   | $                                                                                       | 680        |                                                                                   | $      | 658        |   | $        | 680        |   | $ | 658 |   |
| ***Motor                  Vehicle Installment Sales Contracts:*** |   |                                                                                    |       |                                                                                   |   |       |   |     |       |   |   |   |   |
| Total                  Number of Contracts Made                   |   |                                                                                    | 204        |                                                                                   |   | 188        |   |     | 755        |   |   | 602 |   |
| Total                  Volume of Contracts Made                   |   | $                                                                                       | 3,911,406  |                                                                                   | $      | 3,097,441  |   | $        | 13,558,754 |   | $ | 9,726,568 |   |
| Average                  Size of Contracts Made                   |   | $                                                                                       | 19,174     |                                                                                   | $      | 16,476     |   | $        | 17,959     |   | $ | 16,157 |   |
| Number                  of Contracts Outstanding                  |   |                                                                                    | 2,615      |                                                                                   |   | 2,322      |   |     | 2,615      |   |   | 2,322 |   |
| Total                  of Contracts Outstanding*                  |   | $                                                                                       | 31,491,728 |                                                                                   | $      | 29,155,062 |   | $        | 31,491,728 |   | $ | 29,155,062 |   |
| Percent                  of Total Loans and Contracts             |   |                                                                                    | 34.51      | %                                                                                      |   | 34.43      | %      |     | 34.51      | % |   | 34.43 | % |
| Average                  Balance on Outstanding Contracts         |   | $                                                                                       | 12,043     |                                                                                   | $      | 12,556     |   | $        | 12,043     |   | $ | 12,556 |   |
|                                                              |   |                                                                                    |       |                                                                                   |   |       |   |     |       |   |   |   |   |
| ***Consumer                  Sales Finance Contracts:***          |   |                                                                                    |       |                                                                                   |   |       |   |     |       |   |   |   |   |
| Number                  of Contracts Made to New Customers        |   |                                                                                    | 25         |                                                                                   |   | 104        |   |     | 99         |   |   | 200 |   |
| Number                  of Loans Made to Former Customers         |   |                                                                                    | 522        |                                                                                   |   | 1,053      |   |     | 1,774      |   |   | 2,792 |   |
| Number                  of Loans Made to Existing Customers       |   |                                                                                    | 549        |                                                                                   |   | 853        |   |     | 1,775      |   |   | 1,719 |   |
| Total                  Contracts Made                             |   |                                                                                    | 1,096      |                                                                                   |   | 2,010      |   |     | 3,648      |   |   | 4,711 |   |
| Total                  Volume of Contracts Made                   |   | $                                                                                       | 295,308    |                                                                                   | $      | 3,123,049  |   | $        | 9,657,198  |   | $ | 8,336,718 |   |
| Number                  of Contracts Outstanding                  |   |                                                                                    | 6,298      |                                                                                   |   | 5,334      |   |     | 6,298      |   |   | 5,334 |   |
| Total                  of Contracts Outstanding*                  |   | $                                                                                       | 11,636,843 |                                                                                   | $      | 9,410,055  |   | $        | 11,636,843 |   | $ | 9,410,055 |   |
| Percent                  of Total Loans and Contracts             |   |                                                                                    | 12.76      | %                                                                                      |   | 11.12      | %      |     | 12.76      | % |   | 11.12 | % |
| Average                  Balance of Outstanding Contracts         |   | $                                                                                       | 1,848      |                                                                                   | $      | 1,764      |   | $        | 1,848      |   | $ | 1,764 |   |

----

|                                             |   | **As                  of June 25,** |       |
|--------------------------------------------------|--------|-------------------------------------|------------|
|                                             |   | **2006**                            |       | **2005** |   |
| ***Total                  Loans and Contracts*** |   |                                |       |   |   |
| ***Outstanding                  (gross):***      |   |                                |       |   |   |   |   |
|                                             |   |                                |       |   |   |   |   |
| Direct                  Consumer Loans           |   | $                                   | 48,117,617 |   | $ | 46,103,780 |   |
| Motor                  Vehicle Installment       |   |                                | 31,491,728 |   |   | 29,155,062 |   |
| Consumer                  Sales Finance          |   |                                | 11,636,843 |   |   | 9,410,055 |   |
| Bankrupt                  Accounts               |   |                                | 5,230,980  |   |   | 4,498,016 |   |
|                                             |   |                                |       |   |   |   |   |
| Total                  Gross Outstanding         |   | $                                   | 96,477,168 |   | $ | 89,166,913 |   |

----

|                                                              |   | **For                  the Three Months****Ended                  June 25,** |        | **For                  the Nine Months****Ended                  June 25,** |   |
|-------------------------------------------------------------------|--------|------------------------------------------------------------------------------|-------------|-----------------------------------------------------------------------------|--------|
|                                                              |   | **2006**                                                                     |        | **2005**                                                                    |   | **2006** |   | **2005** |   |
| ***Direct                  Consumer Loans:***                     |   |                                                                         |        |                                                                        |   |   |   |   |   |   |   |   |   |
| Balance                  - beginning                              |   | $                                                                            | 48,673,419  |                                                                        | $      | 40,859,321 |   | $ | 48,840,570 |   | $ | 38,281,888 |   |
| Loans                  originated                                 |   |                                                                         | 19,384,729  |                                                                        |   | 24,205,397 |   |   | 63,447,290 |   |   | 64,914,687 |   |
| Collections                                                       |   |                                                                         | (13,476,988 | )                                                                           |   | (12,582,246 | ) |   | (43,904,469 | ) |   | (40,349,982 | ) |
| Refinances                                                        |   |                                                                         | (4,156,597  | )                                                                           |   | (4,374,910 | ) |   | (12,279,235 | ) |   | (11,696,705 | ) |
| Charge                  offs                                      |   |                                                                         | (968,977    | )                                                                           |   | (614,282 | ) |   | (3,559,814 | ) |   | (2,005,669 | ) |
| Rebates                  / other adjustments                      |   |                                                                         | (1,337,969  | )                                                                           |   | (1,389,500 | ) |   | (4,426,725 | ) |   | (3,040,439 | ) |
| Balance                  - end                                    |   | $                                                                            | 48,117,617  |                                                                        | $      | 46,103,780 |   | $ | 48,117,617 |   | $ | 46,103,780 |   |
| ***Consumer                  Sales Finance Contracts:***          |   |                                                                         |        |                                                                        |   |   |   |   |   |   |   |   |   |
| Balance                  - beginning                              |   | $                                                                            | 11,209,447  |                                                                        | $      | 8,755,672 |   | $ | 9,661,474 |   | $ | 7,240,653 |   |
| Loans                  originated                                 |   |                                                                         | 2,956,308   |                                                                        |   | 3,123,049 |   |   | 9,657,196 |   |   | 8,336,718 |   |
| Collections                                                       |   |                                                                         | (1,290,927  | )                                                                           |   | (1,040,051 | ) |   | (3,690,269 | ) |   | (2,855,278 | ) |
| Refinances                                                        |   |                                                                         | (771,826    | )                                                                           |   | (879,205 | ) |   | (2,573,118 | ) |   | (2,082,967 | ) |
| Charge                  offs                                      |   |                                                                         | (104,305    | )                                                                           |   | (175,475 | ) |   | (293,632 | ) |   | (332,772 | ) |
| Rebates                  / other adjustments                      |   |                                                                         | (361,854    | )                                                                           |   | (373,935 | ) |   | (1,124,808 | ) |   | (896,299 | ) |
| Balance                  - end                                    |   | $                                                                            | 11,636,843  |                                                                        | $      | 9,410,055 |   | $ | 11,636,843 |   | $ | 9,410,055 |   |
| ***Motor                  Vehicle Installment Sales Contracts:*** |   |                                                                         |        |                                                                        |   |   |   |   |   |   |   |   |   |
| Balance                  - beginning                              |   | $                                                                            | 31,820,506  |                                                                        | $      | 29,667,215 |   | $ | 29,765,603 |   | $ | 30,557,683 |   |
| Loans                  originated                                 |   |                                                                         | 3,911,406   |                                                                        |   | 3,097,441 |   |   | 13,558,754 |   |   | 9,726,568 |   |
| Collections                                                       |   |                                                                         | (3,684,953  | )                                                                           |   | (3,035,293 | ) |   | (10,011,367 | ) |   | (9,253,772 | ) |
| Refinances                                                        |   |                                                                         | -           |                                                                        |   | - |   |   | - |   |   | - |   |
| Charge                  offs                                      |   |                                                                         | (254,371    | )                                                                           |   | (319,975 | ) |   | (853,175 | ) |   | (1,007,365 | ) |
| Rebates                  / other adjustments                      |   |                                                                         | (300,860    | )                                                                           |   | (254,326 | ) |   | (968,087 | ) |   | (868,052 | ) |
| Balance                  - end                                    |   | $                                                                            | 31,491,728  |                                                                        | $      | 29,155,062 |   | $ | 31,491,728 |   | $ | 29,155,062 |   |
| ***Total                  Active Accounts:***                     |   |                                                                         |        |                                                                        |   |   |   |   |   |   |   |   |   |
| Balance                  - beginning                              |   | $                                                                            | 91,703,372  |                                                                        | $      | 79,282,208 |   | $ | 88,267,647 |   | $ | 76,080,224 |   |
| Loans                  originated                                 |   |                                                                         | 26,252,443  |                                                                        |   | 30,425,887 |   |   | 86,663,240 |   |   | 82,977,973 |   |
| Collections                                                       |   |                                                                         | (18,452,868 | )                                                                           |   | (16,657,590 | ) |   | (57,606,105 | ) |   | (52,459,032 | ) |
| Refinances                                                        |   |                                                                         | (4,928,423  | )                                                                           |   | (5,254,115 | ) |   | (14,852,353 | ) |   | (13,779,672 | ) |
| Charge                  offs                                      |   |                                                                         | (1,327,653  | )                                                                           |   | (1,109,732 | ) |   | (4,706,621 | ) |   | (3,345,806 | ) |
| Rebates                  / other adjustments                      |   |                                                                         | (2,000,683  | )                                                                           |   | (2,017,761 | ) |   | (6,519,620 | ) |   | (4,804,790 | ) |
| Balance                  - end                                    |   | $                                                                            | 91,246,188  |                                                                        | $      | 84,668,897 |   | $ | 91,246,188 |   | $ | 84,668,897 |   |
| ***Total                  Bankrupt Accounts:***                   |   |                                                                         |        |                                                                        |   |   |   |   |   |   |   |   |   |
| Balance                  - beginning                              |   | $                                                                            | 5,140,581   |                                                                        | $      | 4,211,150 |   | $ | 4,921,905 |   | $ | 3,531,667 |   |
| Charge                  offs                                      |   |                                                                         | (135,133    | )                                                                           |   | (75,209 | ) |   | (615,600 | ) |   | (244,863 | ) |
| Adjustments                                                       |   |                                                                         | 225,532     |                                                                        |   | 362,075 |   |   | 924,675 |   |   | 1,211,212 |   |
| Balance                  - end                                    |   | $                                                                            | 5,230,980   |                                                                        | $      | 4,498,016 |   | $ | 5,230,980 |   | $ | 4,498,016 |   |
| Total                  Gross O/S Receivables                      |   | $                                                                            | 96,477,168  |                                                                        | $      | 89,166,913 |   | $ | 96,477,168 |   | $ | 89,166,913 |   |

----

|                                                      |   | **Nine                  Months Ended June 25,** |        |
|-----------------------------------------------------------|--------|-------------------------------------------------|-------------|
|                                                      |   | **2006**                                        |        | **2005** |   |
| ***Loans                  Originated:***                  |   |                                            |        |   |   |   |   |
| Direct                  consumer loans                    |   | $                                               | 63,447,290  |   | $ | 64,914,687 |   |
| Consumer                  sales finance                   |   |                                            | 9,657,196   |   |   | 8,336,718 |   |
| Motor                  vehicle installment sales          |   |                                            | 13,558,754  |   |   | 9,726,568 |   |
| Total                  gross loans originated             |   |                                            | 86,663,240  |   |   | 82,977,973 |   |
| Non-cash                  items included in gross loans * |   |                                            | (22,826,532 | ) |   | (21,401,208 | ) |
| Loans                  originated - cash flows            |   | $                                               | 63,836,708  |   | $ | 61,576,765 |   |
|                                                      |   |                                            |        |   |   |   |   |
| ***Loans                  Repaid:***                      |   |                                            |        |   |   |   |   |
| Collections                                               |   |                                            |        |   |   |   |   |
| Direct                  consumer loans                    |   | $                                               | 43,904,469  |   | $ | 40,349,982 |   |
| Consumer                  sales finance                   |   |                                            | 3,690,269   |   |   | 2,855,278 |   |
| Motor                  vehicle installment sales          |   |                                            | 10,011,367  |   |   | 9,253,772 |   |
| Loans                  repaid - cash flows                |   | $                                               | 57,606,105  |   | $ | 52,459,032 |   |

***Segments      and Seasonality***

|   | · | consumer                finance and sales; and |
|--------|--------|------------------------------------------------|

|   | · | automotive                finance and sales. |
|--------|--------|----------------------------------------------|

***Net      Interest Margin***

----

|                                                                                                                                                                                                                                                                                |   | **As                  of, or for, the Three Months****Ended                  June 25,** |       | **As                  of, or for, the Nine Months****Ended                  June 25,** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                |   | **2006**                                                                                |       | **2005**                                                                               |   | **2006** |   | **2005** |   |
|                                                                                                                                                                                                                                                                                |   |                                                                                    |       |                                                                                   |   |   |   |   |   |
| Average                  net finance receivables                  (1)                                                                                                                                                                                                               |   | $                                                                                       | 83,213,456 |                                                                                   | $      | 73,544,077 |   | $ | 83,935,336 |   | $ | 72,056,127 |   |
| Average                  notes payable                  (2)                                                                                                                                                                                                                         |   | $                                                                                       | 87,274,939 |                                                                                   | $      | 81,015,741 |   | $ | 87,409,885 |   | $ | 79,243,887 |   |
|                                                                                                                                                                                                                                                                                |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
| Interest                  income                                                                                                                                                                                                                                                    |   | $                                                                                       | 3,655,409  |                                                                                   | $      | 3,948,600 |   | $ | 12,000,747 |   | $ | 10,903,294 |   |
| Loan                  fee income                                                                                                                                                                                                                                                    |   | $                                                                                       | 1,041,114  |                                                                                   | $      | 1,171,344 |   | $ | 2,987,796 |   | $ | 3,162,466 |   |
| Total                  interest and fee income                                                                                                                                                                                                                                      |   | $                                                                                       | 4,696,523  |                                                                                   | $      | 5,119,944 |   | $ | 14,988,543 |   | $ | 14,065,760 |   |
| Interest                  expense                                                                                                                                                                                                                                                   |   | $                                                                                       | 1,909,518  |                                                                                   | $      | 1,599,700 |   | $ | 5,424,194 |   | $ | 4,686,549 |   |
|                                                                                                                                                                                                                                                                                |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
| Net                  interest income before provision for credit losses                                                                                                                                                                                                             |   | $                                                                                       | 2,787,005  |                                                                                   | $      | 3,520,244 |   | $ | 9,564,349 |   | $ | 9,379,211 |   |
| Average                  interest rate earned (annualized)                                                                                                                                                                                                                          |   |                                                                                    | 22.6       | %                                                                                      |   | 27.8 | % |   | 23.8 | % |   | 26.0 | % |
| Average                  interest rate paid (annualized)                                                                                                                                                                                                                            |   |                                                                                    | 8.8        | %                                                                                      |   | 7.9 | % |   | 8.3 | % |   | 7.9 | % |
| Net                  interest rate spread (annualized)                                                                                                                                                                                                                              |   |                                                                                    | 13.8       | %                                                                                      |   | 19.9 | % |   | 15.5 | % |   | 18.1 | % |
| Net                  interest margin (annualized)                  (3)                                                                                                                                                                                                              |   |                                                                                    | 13.4       | %                                                                                      |   | 19.1 | % |   | 15.2 | % |   | 17.4 | % |
|                                                                                                                                                                                                                                                                                |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
| (1)                  Averages are computed using month-end balances of finance receivables                  (net                  of unearned interest/fees, unearned insurance commissions, and                  unearned                  discounts) during the period presented. |   |
| (2)                  Averages are computed using month-end balances of interest bearing                  debt                  during the period presented.                                                                                                                         |   |
| (3)                  Net interest margin represents net interest income (before provision                  for                  credit losses) divided by the average net finance                  receivables.                                                                     |   |

***Analysis      of Allowance for Credit Losses***

----

|                                                                 |   | **As                  of, or for, the Three****Months                  Ended June 25,** |       | **As                  of, or for, the Nine Months****Ended                  June 25,** |   |
|----------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------|--------|
|                                                                 |   | **2006**                                                                                |       | **2005**                                                                               |   | **2006** |   | **2005** |   |
| ***Direct                  Consumer Loans and Consumer***            |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
| ***Sales                  Finance Contracts:***                      |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
|                                                                 |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
| Average                  net finance receivables                     |   | $                                                                                       | 55,481,899 |                                                                                   | $      | 46,406,445 |   | $ | 55,273,105 |   | $ | 50,813,650 |   |
|                                                                 |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
| Charge                  offs - direct consumer                       |   | $                                                                                       | 968,976    |                                                                                   | $      | 614,282 |   | $ | 3,559,812 |   | $ | 2,005,669 |   |
| Charge                  offs - consumer sales finance                |   | $                                                                                       | 104,306    |                                                                                   | $      | 175,475 |   | $ | 293,633 |   | $ | 332,772 |   |
| Charge                  offs - bankruptcy                            |   | $                                                                                       | 135,133    |                                                                                   | $      | 75,209 |   | $ | 615,600 |   | $ | 244,863 |   |
| Total                  gross charge offs                             |   | $                                                                                       | 1,208,415  |                                                                                   | $      | 864,966 |   | $ | 4,469,045 |   | $ | 2,583,304 |   |
| Recoveries                  (all direct consumer)                    |   | $                                                                                       | (741,963   | )                                                                                      | $      | (968,605 | ) | $ | (2,122,204 | ) | $ | (2,298,718 | ) |
| Charge                  offs, net                                    |   | $                                                                                       | 466,452    |                                                                                   | $      | (103,639 | ) | $ | 2,346,841 |   | $ | 284,586 |   |
| Percent                    of net charge offs to average receivables |   |                                                                                    | 0.8        | %                                                                                      |   | -0.2 | % |   | 4.2 | % |   | 0.6 | % |
|                                                                 |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
| ***Motor                  Vehicle Installment Sales***               |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
| ***Contracts:***                                                     |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
|                                                                 |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
| Average                  outstanding finance receivables             |   | $                                                                                       | 27,731,453 |                                                                                   | $      | 24,919,180 |   | $ | 27,662,196 |   | $ | 28,483,671 |   |
|                                                                 |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
| Charge                  offs, gross                                  |   | $                                                                                       | 254,370    |                                                                                   | $      | 319,975 |   | $ | 853,175 |   | $ | 1,007,365 |   |
| Recoveries                                                           |   | $                                                                                       | -          |                                                                                   | $      | - |   | $ | - |   | $ | - |   |
| Charge                  offs, net                                    |   | $                                                                                       | 254,370    |                                                                                   | $      | 319,975 |   | $ | 853,175 |   | $ | 1,007,365 |   |
| Percent                    of net charge offs to average receivables |   |                                                                                    | 0.9        | %                                                                                      |   | 1.3 | % |   | 3.1 | % |   | 3.5 | % |
|                                                                 |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
| ***Total                  Receivables:***                            |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
|                                                                 |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
| Average                  outstanding finance receivables             |   | $                                                                                       | 83,213,352 |                                                                                   | $      | 71,325,625 |   | $ | 82,935,301 |   | $ | 79,297,321 |   |
|                                                                 |   |                                                                                    |       |                                                                                   |   |   |   |   |   |   |   |   |   |
| Charge                  offs, gross                                  |   | $                                                                                       | 1,462,785  |                                                                                   | $      | 1,184,941 |   | $ | 5,322,220 |   | $ | 3,590,669 |   |
| Recoveries                  (all direct consumer)                    |   | $                                                                                       | (741,963   | )                                                                                      | $      | (968,605 | ) | $ | (2,122,204 | ) | $ | (2,298,718 | ) |
| Charge                  offs, net                                    |   | $                                                                                       | 720,822    |                                                                                   | $      | 216,336 |   | $ | 3,200,016 |   | $ | 1,291,951 |   |
| Percent                    of net charge offs to average receivables |   |                                                                                    | 0.9        | %                                                                                      |   | 0.3 | % |   | 3.9 | % |   | 1.6 | % |

----

***Delinquency      Information***

|                                              |   |                                          |       |                                                     |   |                                                                               |   |                       |       |      |   |
|---------------------------------------------------|--------|-----------------------------------------------|------------|----------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|----------------------------|------------|-----------|--------|
|                                              |   | **As                  of June 25, 2006**      |       |
|                                              |   | **Direct****Consumer                  Sales** |       | **Consumer                  Sales Finance****Contracts** |   | **Motor                  Vehicle Installment****Sales                  Contracts** |   | **Bankruptcy****Accounts** |       | **Total** |   |
| Gross                  Loans and Contracts        |   |                                          |       |                                                     |   |                                                                               |   |                       |       |      |   |   |   |   |   |   |
| Receivables                                       |   | $                                             | 48,117,617 |                                                     | $      | 11,636,843                                                                         |   | $                          | 31,491,728 |      | $      | 5,230,980 |   | $ | 96,477,168 |   |
| Loans                  and Contracts 60 - 90 days |   |                                          |       |                                                     |   |                                                                               |   |                       |       |      |   |   |   |   |   |   |
| past                  due                         |   | $                                             | 808,087    |                                                     | $      | 180,531                                                                            |   | $                          | 29,546     |      | $      | 150,581 |   | $ | 1,168,745 |   |
| Percentage                  of Outstanding        |   |                                          | 1.7        | %                                                        |   | 1.6                                                                                | %      |                       | 0.1        | %         |   | 2.9 | % |   | 1.2 | % |
| Loans                  and Contracts greater than |   |                                          |       |                                                     |   |                                                                               |   |                       |       |      |   |   |   |   |   |   |
| 90                  days past due                 |   | $                                             | 9,477,754  |                                                     | $      | 2,779,212                                                                          |   | $                          | 7,243      |      | $      | 2,701,146 |   | $ | 14,965,355 |   |
| Percentage                  of Outstanding        |   |                                          | 19.7       | %                                                        |   | 23.9                                                                               | %      |                       | 0.0        | %         |   | 51.6 | % |   | 15.5 | % |
| Loans                  and Contracts greater than |   |                                          |       |                                                     |   |                                                                               |   |                       |       |      |   |   |   |   |   |   |
| 60                  days past due                 |   | $                                             | 10,285,841 |                                                     | $      | 2,959,743                                                                          |   | $                          | 36,789     |      | $      | 2,851,727 |   | $ | 16,134,100 |   |
| Percentage                  of Outstanding        |   |                                          | 21.4       | %                                                        |   | 25.4                                                                               | %      |                       | 0.1        | %         |   | 54.5 | % |   | 16.7 | % |

----

|                                              |   | **As                  of June 25, 2005**      |       |
|---------------------------------------------------|--------|-----------------------------------------------|------------|
|                                              |   | **Direct****Consumer                  Sales** |       | **Consumer                  Sales Finance****Contracts** |   | **Motor                  Vehicle Installment****Sales                  Contracts** |   | **Bankruptcy****Accounts** |   | **Total** |   |
| Gross                  Loans and Contracts        |   |                                          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Receivables                                       |   | $                                             | 46,103,780 |   | $ | 9,410,055 |   | $ | 29,155,062 |   | $ | 4,498,016 |   | $ | 89,166,913 |   |
| Loans                  and Contracts 60 - 90 days |   |                                          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| past                  due                         |   | $                                             | 582,628    |   | $ | 119,606 |   | $ | 48,344 |   | $ | 132,699 |   | $ | 883,277 |   |
| Percentage                  of Outstanding        |   |                                          | 1.3        | % |   | 1.3 | % |   | 0.2 | % |   | 3.0 | % |   | 1.0 | % |
| Loans                  and Contracts greater than |   |                                          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 90                  days past due                 |   | $                                             | 8,616,677  |   | $ | 2,128,314 |   | $ | - |   | $ | 2,535,514 |   | $ | 13,280,505 |   |
| Percentage                  of Outstanding        |   |                                          | 18.7       | % |   | 22.6 | % |   | 0.0 | % |   | 56.4 | % |   | 14.9 | % |
| Loans                  and Contracts greater than |   |                                          |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 60                  days past due                 |   | $                                             | 9,199,305  |   | $ | 2,247,920 |   | $ | 48,344 |   | $ | 2,668,213 |   | $ | 14,163,782 |   |
| Percentage                  of Outstanding        |   |                                          | 20.0       | % |   | 23.9 | % |   | 0.2 | % |   | 59.3 | % |   | 15.9 | % |

***Results      of Operations***

***Comparison      of Nine Months Ended June 25, 2006 and 2005***

***Net      Revenues***

***Net      Interest Income Before Provision for Credit Losses***

----

***Provision      for Credit Losses***

***Insurance      and Other Products***

***Gross      Margin on Retail Sales***

***Operating      Expenses***

***Comparison      of Three Months Ended June 25, 2006 and 2005***

***Net      Revenues***

----

***Net      Interest Income Before Provision for Credit Losses***

***Provision      for Credit Losses***

***Insurance      and Other Products***

***Gross      Margin on Retail Sales***

***Operating      Expenses***

----

**Liquidity      and Capital Resources**

***General***

|   | · | meet                all of our debenture and demand note redemption obligations; |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | pay                interest on all of our debentures and demand                notes; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | pay                operating expenses; and |
|--------|--------|--------------------------------------------|

|   | · | fund                consumer finance loan demand and used automobile vehicle                inventory. |
|--------|--------|--------------------------------------------------------------------------------------------------------|

----

***Debentures      and Demand Notes***

***Recent      Accounting Pronouncements***

***Critical      Accounting Policies***

----

***Impact      of Inflation and General Economic Conditions***

**Item3.      Quantitative and Qualitative Disclosures About      Market Risk**

**Item4.      Controls and Procedures **

----

**PART      II - OTHER INFORMATION **

**Item1.      Legal Proceedings**

**Item1A.      Risk Factors**

**Item2.      Unregistered Sales of Equity Securities and Use of      Proceeds.**

**Item3.      Defaults Upon Senior Securities**

**Item4.      Submission of Matters to a Vote of Security      Holders.**

**Item5.      Other Information**

**Item6.      Exhibits**

| 31.1 | Certification                of Principal Executive Officers pursuant to Section 302 of The                Sarbanes-Oxley Act of 2002                           |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.2 | Certification                of Principal Financial Officer pursuant to Section 302 of The                Sarbanes-Oxley Act of 2002                            |
| 32.1 | Certifications                of President and Chief Financial Officer pursuant to Section 906                of the                Sarbanes-Oxley Act of 2002  |

----

**SIGNATURES**

|   | THE                MONEY TREE INC.                                   |
|--------|----------------------------------------------------------------------|
|   |                                                                 |
|   |                                                                 |
| 8/9/06 | /s/                W. Derek Martin                                   |
| Date   | W.                Derek Martin                                       |
|   | President                (Principal Executive Officer)               |
|   |                                                                 |
|   |                                                                 |
| 8/9/06 | /s/                Steven P. Morrison                                |
| Date   | Steven                P. Morrison                                    |
|   | Chief                Financial Officer (Principal Financial Officer) |