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

                               FORM 10-QSB

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

     For the quarterly period ended September 30, 1996
                                    OR
[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     
          SECURITIES EXCHANGE ACT OF 1934

     For the transition period from               to              


     Commission file number 0-16371

                            NAMSCO CORPORATION
          (Exact name of registrant as specified in its charter)

               Utah                             87-0430312
  (State or other jurisdiction of             (I.R.S. Employer  
incorporation or organization)              Identification No.)

         E. 122 Montgomery                 
         SPOKANE, WA.                           99207   
(Address of principal executive offices)     (Zip code)

                            (509)  327-7784
                     (Registrant's telephone number,
                         including area code)

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

As of October 31, 1996,  4,319,902 shares of common stock were
outstanding.

The total number of pages in this form 10-Q is  10  pages.




<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                                Form 10-QSB
                                   INDEX
                                                        Page Number

Part I.
Financial Information
  Item I.  Financial Statements
      Consolidated Balance Sheets 
      September 30, 1996 and December 31, 1995               3-4

      Consolidated Statements of Income
      for the three month and nine month periods                  
      ended September 30, 1996 and 1995                      5    
                                                                  
      Consolidated Statements of Stockholders'                    
      Equity December 31, 1995 and September 30, 1996             
      
      Consolidated Statement of Cash Flows for the                
      nine month periods ended September 30, 1996                 
      and 1995                                               7

      Notes to Financial Statements                          8-9

 Item II.  Management's Discussion and Analysis
           of Financial Condition and Results of
           Operations                                        9-10

 Part II.  Other Information and Signatures                  10-11 
                          
         
<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                        CONSOLIDATED BALANCE SHEETS


                             September 30,      December 31,
ASSETS                                1996              1995   

Current assets:
   Cash                       $     67,977          $75,279     
Accounts receivable                535,468          441,529   
Current portion of net investment
     in sales-type leases        2,440,403        3,287,954   
Current portion of notes
     receivable-Tribute contracts   33,118          280,337   
Inventories                      1,488,287        1,459,593   
Prepaid expense and other        (198,811)          100,882       
                                __________        _________       
      
Total                            4,366,441        5,645,574

Property and Equipment (net)
   Rental equipment                475,718          964,454   
Operating equipment and
     leasehold improvements      2,530,345        2,691,544       
                                   

Total                            3,006,063        3,655,998

Other assets
   Non-current portion of net investment
     in sales-type leases       16,897,182       15,968,714
   Non-current portion notes receivable-
     Tribute contracts              18,188           83,857
   Non-current portion of
     term contracts                 57,705          184,867   
Notes and advance due from related
     parties                       574,348          424,375       
                                   

Total                           17,547,423       16,661,813

Total Assets                   $24,919,927      $25,963,385










Notes to the financial statements for the year ended December 31,
1995 should be read in conjunction with these interim financial
statements and are not repeated here.

<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                                     
                        CONSOLIDATED BALANCE SHEETS
                                (Continued)


                                     September 30,     December 31,
LIABILITIES AND STOCKHOLDERS' EQUITY          1996            1995 
       
Current liabilities:
  Accounts payable:
    Trade                             $ 1,831,820     $  1,200,272 
    Reorganization costs                  133,757
  Accrued expenses:
    Payroll & related taxes               373,669          457,251 
    Sales commissions                                       34,278 
    Interest                              240,056          174,388 
  Current maturities of 
     long-term debt                    15,722,671        9,889,035 
  Advance rental collections                  681           59,546 
                                         

    Total                              18,302,656       11,880,468

Liabilities due after one year:
 Maintenance on Tribute contracts          45,067           66,000 
 Long-term debt                         5,534,481       11,758,099 
 Advance collections on
    rental accounts                         2,924            1,856 
 Deferred income taxes                  1,043,445        1,439,345

    Total                               6,614,017       13,265,300

Commitments and contingencies         

Stockholders' Equity
   Common stock,$.007 par value;
    Authorized, 15,000,000 shares; issued 
       and outstanding, 4,319,902          30,240          30,240 
   Additional paid-in capital             201,269         201,269 
   Retained earnings                    (228,255)         586,108

    Total                                   3,254         817,617

Total Liabilities & Equity            $24,919,927      25,963,385






Notes to the financial statements for the year ended December 31,
1995 should be read in conjunction with these interim financial
statements and are not repeated here.


<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                                     
                     CONSOLIDATED STATEMENTS OF INCOME

                           Three months ended   Nine months ended
                           September 30,        September 30,     
         
Revenues:                       1996      1995      1996      1995
 New music installations    $637,363 1,546,142 1,970,831 5,050,828 
 Renewal contracts            70,304    73,075   954,167   308,958 
 Tribute contracts           366,656   182,900 1,201,892   534,499 
 Direct sales and other      166,584   173,670   526,578   533,421 
 Finance                     636,848   547,677 1,784,323 1,607,928 
 Service                     110,904   139,236   365,000   401,667 
 Rental                       78,142   125,414   354,092   393,635 
   
      Total                2,066,801 2,788,114 7,156,883 8,830,936

Costs and Expenses: 
  Cost of sales              352,116   532,461 1,337,840 1,861,123 
 Selling, general and 
    administrative         1,061,193 1,202,050 2,981,547 3,407,038 
 Maintenance                 130,719   157,474   615,649   620,836

      Total                1,544,028 1,891,985 4,935,036 5,888,997

Income from operations       522,773   896,129 2,221,847 2,941,939 
   

Other expense:
 Interest                 (502,772)(552,714)(1,822,514)(1,664,788) 
 Cancellation of sales- 
   type leases:
     Systems replaced with   
       CD equipment       (194,443)(358,912)(1,031,666)(1,559,506) 
   Removed systems        (144,229)(219,585)  (566,953)  (554,851)

      Total             (841,444)(1,131,211)(3,421,133)(3,779,145)

Income (Loss) before 
  income taxes          (318,671) (235,082) (1,199,286)  (837,206)
Provision for income
   taxes                 (62,317) ( 88,000)  (386,417)   (203,400)

Net loss               $(256,354)$(147,082)$ (812,869)$  (633,806)

Weighted average common
  shares outstanding    4,319,902 4,319,902  4,319,902   4,319,902 

Income (Loss) per share
  of common stock         $ (.06)   $ (.03)   $  (.19)    $  (.15)


 

Notes to the financial statements for the year ended December 31,
1995 should be read in conjunction with these interim financial
statements and are not repeated here.



<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                                     
              CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY     
            December 31, 1995 and September 30, 1996

                              Common Stock       Additional
                                                 Paid-in Retained 
                              Shares    Amount   Capital  Earnings 
                                        
BALANCE, December 31, 1995   4,319,902  $30,240  $201,269 $584,614 

Net loss for the nine months
  ended September 30, 1996       -         -         -   (812,869)

BALANCE, September 30, 1996  4,319,902  $30,240  $201,269$(228,255)






































                                                                  
Notes to the financial statements for the year ended December 31,
1995 should be read in conjunction with these interim financial
statements and are not repeated here.



<PAGE>
                     NAMSCO CORPORATION AND SUBSIDIARY
                                     
                   CONSOLIDATED STATEMENTS OF CASH FLOWS


                                  Nine Months Ended September 30, 
                                                1996         1995 
                 
Net cash flow from operating
  activities                               $ 706,704    $(313,774)

Cash flows from investing activities:
 Additions-rental equipment                (369,407)     (441,398) 
 Additions-music and
   video libraries                            60,409     (115,063) 
Additions-operating equipment                 36,818     (219,142)

      Total                                (272,180)     (775,603)

Cash flows from financing activities:
  Proceeds from sale of contracts          4,522,431     2,383,356 
  Principal payments on funds received
    from sale of contracts               (1,031,481)     (690,493) 
 Proceeds from borrowing                     -             175,228 
 Payments of long term debt              (3,544,039)       105,245 
 Payments on contracts and prefiling
    obligations                            (388,837)           -  
    
      Total                                1,013,775     (425,232)

Increase/(Decrease) in Cash                  (7,302)      (75,603)

Cash at beginning of period                   75,279       130,182 

Cash at end of period                       $ 67,977      $ 54,579 


















Notes to the financial statements for the year ended December 31,
1995 should be read in conjunction with these interim financial
statements and are not repeated here.
<PAGE>
                      NAMSCO CORPORATION AND SUBSIDIARY

                         Note to Financial Statements

Note 1- Compliance with terms of Secured Credit Agreement.

The Company is in default under the terms of the credit agreement
with the "secured lender", hereafter referred to as "lender".  As
a result, the entire debt to the lender has been classified as a
current liability.  The default is related to non-compliance with
the provisions for maintaining positive cash flow, timely payment
of taxes and a limitation on capital expenditures.  The lender has
not waived the non-compliance.  The Company has made all regularly
scheduled payments to the lender.

Item II

Management's Discussion and Analysis of Financial Condition and
Results of Operations

Liquidity and Capital Resources

The Company's primary source of cash flow is from the collection of
monthly service fees on the 3,800 (approx) music playback systems,
1,700 (approx) music library agreements and 700 (approx) tribute
programs currently in place in funeral homes.  Customers have the
option of paying cash, financing, or leasing new music
installations.  Lease and sale agreements are sold (discounted) to
a finance company to provide the funds to cover the costs
associated with installing new music playback systems and tribute
programs that are not paid in full at the time of the installation. 
The discounted amount realized from the sale of the agreements is
approximately the same as the cash sale price for the equipment.

The Company has been in contact with additional financing sources
to assure that it will have the financing to continue new
installations of its music systems and tribute programs. 
Indications are that other sources are available. 

During the first quarter of 1996, the Company initiated a plan to
pay down the liability to the secured lender.  Contracts classified
under the "net investment in sales type leases" were discounted to
net present value, sold to a finance company, and the proceeds were
paid directly to the lender in the amount of $3,509,264.51 during
the first, second, and third quarters.  This included principal
reductions which were part of the regular monthly payments.  

On September 5, 1996, the lender was replaced by the present
secured lender in a negotiated transfer of position.  Management's
plans with regard to these matters include discussions which have
been initiated with the replacement secured lender to restructure
or forgive a substantial portion of the related debt.  By
restructuring or forgiving some of the debt, management believes it
will be able to modify the payment terms of the debt and thereby
reduce current cash flow requirements.


Results of Operations

Total revenues are $721,313 less for the three months and
$1,674,053 for the nine months ended September 30, 1996, or a
decrease of 26% and 19%, respectively.   A total of 67 new
installations were completed in the third quarter of 1996 compared
with 92 for the same period in 1995.  This resulted in a decrease
of total installations for the nine months ended September 30, 1996
to 219 new music systems compared with 428 systems for the same
period of 1995. The decrease in revenues from new installations was
partially offset by an increase in revenues from renewal agreements
and an increase in tribute sales.  The expiring agreements that are
not renewed under term agreements represent customers who continue
to be billed as monthly rentals, reflecting as an increase of
rental accounts.  

The majority of the new CD music installations in the latter part
of 1994 and all of 1995 were the new "conversion" style cabinet
that is less expensive to manufacture and less costly to ship. 
Cost of sales for the third quarter of 1996 is 28% compared to 27%
for the same period of 1995 and 29% for the nine months ended
September 30, 1996 compared with 29% for the same period of 1995.

Selling, general and administrative costs increased to 51% of gross
sales for the  quarter ended September 30, 1996 compared to 43% for
the same period of the prior year and 42% for the nine months ended
September 30, 1996 compared with 39% for the same period of 1995.
The increase in costs reflects an increase in sales expenses.  In
the first, second, and third quarter of 1996, an increased effort
was made to upgrade existing tape installations by the addition of
CD units and thereby retain the customer base.  

Maintenance costs decreased 17% in the quarter ended September 30,
1996 compared to the same period of the prior year and decreased 1%
in the nine month period. 

Interest expense decreased in the third quarter of 1996 by $49,942
over the same period of the prior year, but increased $157,226 for
the nine months ended September 30, 1996 over the previous year.
This reflects the increase in debt from the sale of contracts to a
finance company.  The effective interest rate on funds borrowed
from the finance company is higher than the interest rate for debt
that is being currently reduced.

The book value of replaced systems is charged to other expense in
the period the replacement installation is made.  The book value
for equipment under lease includes the recorded residual value and
the present value of future payments that are cancelled at the time
of the replacement.  The value of rental equipment removed is the
undepreciated book value of the rental equipment.  

The effect of the above activity resulted in an increase in the net
loss during the quarter ended September 30, 1996 of $256,354
compared to a net loss of $147,082 for the same period of the prior
year, and a net loss of $812,869 for the nine months ended
September 30, 1996 compared to a net loss of $633,800 for the same
period of the prior year. 

Balance Sheet 

The net investment in sales-type leases increased $80,917 in the
first nine months of 1996.  This reflects the addition of new lease
agreements at rates greater than the expiring or replaced lease
agreements.  More emphasis has been placed on writing lease
agreements, and less on the outright sale of CD playback equipment. 
This has resulted in more leases of equipment for new CD playback
installations.  

The receivables from tribute contracts declined $312,888 in the
first nine months of 1996.  The decline reflects the expiration of
tribute contracts in excess of new contracts added.   

Inventories decreased $28,694 during the nine-months ended
September 30, 1996, a result of more emphasis on inventory control
and management.

Total term debt decreased $348,503 during the nine-months ended
September 30, 1996.  During this nine month period the long term
debt of the secured lender was reduced by $3,509,264, along with a
$308,023 reduction in contracts payable.  The new borrowing
represents the proceeds from the sale of lease agreements to a
finance company.


Part II.  Other Information

Item 3.  Defaults upon Senior Securities
          
The last "standstill period" instituted by the secured creditor as
provided in the Plan of Reorganization (whereby no payments can be
made to the holders of Senior Convertible Debentures) ended on
November 6, 1995.  Some interest payments were made through
September 30, 1996.  The plan of Reorganization provides for an
"Event of Default" and as of that date, unpaid interest on
subordinated debt and unpaid payments under the plan to unsecured
creditors and taxing agencies also constitute an "Event of
Default".<PAGE>

                            Opinion of Management



The balance sheet as of September 30, 1996 and the related
statements of income, changes in stockholders' equity, and cash
flows for the three month periods and nine month periods ended
September 30, 1996 and 1995 are unaudited.  In the opinion of
Management, all adjustments necessary for a fair presentation of
such financial statements have been included.  Such adjustments
consisted only of normal recurring items.  Interim results are not
necessarily indicative of results for a full year.  It is suggested
that these financial statements be read in conjunction with the
financial statements and notes thereto included in the Company's
latest 10-KSB filing with the SEC.  A copy of the form 10-KSB can
be obtained by contacting the corporate office and requesting a
copy.



                                  SIGNATURES


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



Date  November 15, 1996    /s/ Merrill P. Womach                  
                           Merrill P. Womach
                           President and Chief Executive Officer  
                           Acting Secretary and Treasurer         
                           (Principal Executive Officer)