SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q


(Mark One)


[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


                         Commission File Number 0-16860


                               EAGLE INSURED L.P.
             -------------------------------------------------------
             (Exact names of registrant as specified in its charter)



            Delaware                                     13-3442945
-------------------------------             ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)




625 Madison Avenue, New York, New York                                   10022
----------------------------------------                              ----------
(Address of principal executive offices)                              (Zip Code)


Registrant's telephone number, including area code (212) 421-5333



       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[_]


<PAGE>
                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

                               EAGLE INSURED L.P.
                             (a limited partnership)
                        STATEMENTS OF FINANCIAL CONDITION
                                   (Unaudited)


                                     ASSETS

                                                 September 30,     December 31,
                                                     1996              1995
                                                  -----------       -----------
Investments in mortgage loans                     $27,662,905       $27,764,817
Loan receivable from affiliate                      3,060,000         3,060,000
Deferred loan origination fees, net                   939,824           962,387
Cash and cash equivalents                           1,228,628         1,145,895
Interest receivable                                   259,534           206,763
Equity loan to developer                                    0             6,162
Other assets                                           10,813             3,253
                                                  -----------       -----------

Total assets                                      $33,161,704       $33,149,277
                                                  ===========       ===========


                        LIABILITIES AND PARTNERS' CAPITAL

Liabilities:
   Due to affiliates                              $    62,992       $    76,429
   Accrued expenses                                    70,165            57,222
   Distribution payable                                39,214                 0
                                                  -----------       -----------

Total liabilities                                     172,371           133,651
                                                  -----------       -----------

Contingencies

Partners' capital (deficit):
   BUC$holders (2,641,100 BUC$
     issued and outstanding)                       33,325,980        33,351,747
   General partners                                  (336,647)         (336,121)
                                                  -----------       -----------

Total partners' capital                            32,989,333        33,015,626
                                                  -----------       -----------

Total liabilities and partners' capital           $33,161,704       $33,149,277
                                                  ===========       ===========


See accompanying notes to financial statements


                                      -2-
<PAGE>
                               EAGLE INSURED L.P.
                             (a limited partnership)
                              STATEMENTS OF INCOME
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                              Three Months Ended                           Nine Months Ended
                                                                 September 30,                               September 30,
                                                       ---------------------------------           ---------------------------------
                                                          1996                  1995                  1996                  1995
                                                       -----------           -----------           -----------           -----------
<S>                                                    <C>                   <C>                   <C>                   <C>        
Revenues:

   Interest income:
     Mortgage loans                                    $   614,314           $   618,008           $ 1,920,967           $ 1,920,834
     Loan receivable from affiliate                         72,335                76,245               216,091               228,777
     Temporary investments                                  11,963                13,804                33,047                40,390
   Equity gain (loss)                                      (62,501)               (3,072)               (6,162)               42,264
                                                       -----------           -----------           -----------           -----------

     Total revenues                                        636,111               704,985             2,163,943             2,232,265
                                                       -----------           -----------           -----------           -----------

Expenses:

     General and administrative                             35,998                47,512               129,816               149,431
     Amortization of deferred loan
       origination fees                                      7,521                 7,521                22,563                22,563
                                                       -----------           -----------           -----------           -----------

     Total expenses                                         43,519                55,033               155,521               171,994
                                                       -----------           -----------           -----------           -----------

Net income                                             $   592,592           $   649,952           $ 2,011,564           $ 2,060,271
                                                       ===========           ===========           ===========           ===========


Allocation of Net Income:

   BUC$holders                                         $   542,310           $   598,523           $ 1,856,043           $ 1,903,775
                                                       ===========           ===========           ===========           ===========

   General partners:
     Special distribution                              $    39,214           $    39,214           $   117,642           $   117,643
     Other                                                  11,068                12,215                37,879                38,853
                                                       -----------           -----------           -----------           -----------

                                                       $    50,282           $    51,429           $   155,521           $   156,496
                                                       ===========           ===========           ===========           ===========


Net income per BUC                                     $       .20           $       .23           $       .70           $       .72
                                                       ===========           ===========           ===========           ===========
</TABLE>


See accompanying notes to financial statements


                                      -3-
<PAGE>
                               EAGLE INSURED L.P.
                             (a limited partnership)
               STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                          Total           BUC$holders       General Partners
                                                          -----           -----------       ----------------
<S>                                                    <C>                <C>                  <C>       
Partners' capital (deficit) - January 1, 1996          $33,015,626        $33,351,747          $(336,121)

Net income                                               2,011,564          1,856,043            155,521

Distributions                                           (2,037,857)        (1,881,810)          (156,047)
                                                       -----------        -----------          ---------

Partners' capital (deficit) - September 30, 1996       $32,989,333        $33,325,980          $(336,647)
                                                       ===========        ===========          =========
</TABLE>


See accompanying notes to financial statements


                                      -4-
<PAGE>
                               EAGLE INSURED L.P.
                             (a limited partnership)
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                Nine Months Ended
                                                                  September 30,
                                                          ----------------------------
                                                             1996              1995
                                                          ----------        ----------
<S>                                                       <C>               <C>       
Cash flows from operating activities:
Interest received                                         $2,117,334        $2,168,068
General and administrative expenses paid                    (137,870)         (110,805)
                                                          ----------        ----------

Net cash provided by operating activities                  1,979,464         2,057,263
                                                          ----------        ----------

Cash flows from investing activities:
Principal payments received on mortgage loans                101,912            96,151
                                                          ----------        ----------

Cash flows from financing activities:
Distributions paid to partners                            (1,998,643)       (1,998,307)
                                                          ----------        ----------

Net increase in cash and cash equivalents                     82,733           155,107

Cash and cash equivalents at beginning of the period       1,145,895           975,682
                                                          ----------        ----------

Cash and cash equivalents at end of the period            $1,228,628        $1,130,789
                                                          ==========        ==========

Reconciliation of net income to net cash provided by
   operating activities:
Net income                                                $2,011,564        $2,060,271
                                                          ----------        ----------
Adjustments to reconcile net income to net cash
   provided by operating activities:
Equity (gain) loss                                             6,162           (42,264)
Amortization of deferred loan origination fees                22,563            22,563
Changes in:
   Interest receivable                                       (52,771)          (18,436)
   Other assets                                               (7,560)           (6,469)
   Due to affiliates                                         (13,437)           27,690
   Accrued expenses                                           12,943            13,908
                                                          ----------        ----------

Total adjustments                                            (32,100)           (3,008)
                                                          ----------        ----------

Net cash provided by operating activities                 $1,979,464        $2,057,263
                                                          ==========        ==========

Reconciliation of distributions paid to partners

Distributions to partners                                 $2,037,857        $2,037,521
Increase in distribution payable                             (39,214)          (39,214)
                                                          ----------        ----------

Distributions paid to partners                            $1,998,643        $1,998,307
                                                          ==========        ==========
</TABLE>



See accompanying notes to financial statements


                                      -5-
<PAGE>
                               EAGLE INSURED L.P.
                             (a limited partnership)
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996
                                   (Unaudited)

NOTE 1 - General

         These financial statements have been prepared without audit. In the
opinion of management, the financial statements contain all adjustments
(consisting of only normal recurring adjustments) necessary to present fairly
the financial position of Eagle Insured L.P. (the "Partnership") as of September
30, 1996, the results of operations for the three and nine months ended
September 30, 1996 and 1995 and cash flows for the nine months ended September
30, 1996 and 1995. However, the operating results for the interim periods may
not be indicative of the results expected for the full year.

         Certain information and footnote disclosures normally included in
annual financial statements prepared in accordance with generally accepted
accounting principles have been omitted. It is suggested that these financial
statements be read in conjunction with the financial statements and notes
thereto included in the Partnership's Annual Report on Form 10-K filed with the
Securities and Exchange Commission for the year ended December 31, 1995.

NOTE 2 - Related Parties

              The General Partners and their affiliates perform services for the
Partnership which include, but are not limited to: accounting and financial
management; registrar, transfer and assignment functions; asset management;
investor communications; printing and other administrative services. The General
Partners and their affiliates receive reimbursements for costs incurred in
connection with these services, the amount of which is limited by the provisions
of the Amended and Restated Agreement of Limited Partnership (the "Partnership
Agreement"). The costs and expenses were:


                                  Three Months Ended          Nine Months Ended
                                      September 30,             September 30,
                                  --------------------      --------------------
                                    1996         1995         1996         1995
                                  -------      -------      -------      -------
Prudential-Bache Properties,
  Inc. ("PBP") and affiliates     $10,070      $15,398      $26,663      $55,907

Related Federal Insured L.P. 
  (the "Related General
  Partner") and affiliates          1,120        1,026       31,120        3,078
                                  -------      -------      -------      -------

                                  $11,190      $16,424      $57,783      $58,985
                                  =======      =======      =======      =======

         The present owner of the Cross Creek property ("Walsh/Cross Creek
L.P.") acquired title to the property upon the default of the original
developer. Significant interests in Walsh/Cross Creek L.P. are held by
affiliates of the Related General Partner. The Partnership made a loan to
Walsh/Cross Creek L.P. (the "Cross Creek Loan") to pay for costs incurred to
complete construction and to fund operating deficits. The Cross Creek Loan bears
interest at the prime rate plus 1.0% and is due on January 1, 2030 or on the
occurrence of other events as more fully described in the loan agreement. The
amount loaned to Walsh/Cross Creek L.P. is classified as a loan receivable from
affiliate and is anticipated to be repaid from cash flows from the property.
Stephen M. Ross holds a majority interest in the Related General Partner and has
guaranteed to the Partnership, subject to certain conditions contained in the
Guarantee Agreement and Amendment to the Guarantee as follows: (i) the
performance of all obligations for the payment of interest on the Cross Creek
Loan when due in accordance with documentation evidencing the Cross Creek Loan;
(ii) the payment of principal on the Cross Creek Loan on or before December 31,
2000; (iii) the repayment on or before December 31, 2000 of the $1,783,900
equity loan (currently recorded at zero) previously made to the original
developer of Cross Creek; and (iv) the payment when due of interest and
principal at an interest rate of 8.95% of the $17,494,100 first mortgage loan
previously made to the original developer.


                                      -6-
<PAGE>
                               EAGLE INSURED L.P.
                             (a limited partnership)
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996
                                   (Unaudited)

NOTE 2 - Related Parties (continued)

         In accordance with the Guarantee Agreement and Amendment to the
Guarantee and except as otherwise required by HUD, available cash flow or
capital proceeds from the Cross Creek property will be applied first to all
expenses of operating and maintaining the property, debt service and/or
satisfaction of the mortgage loan, equity loan and Cross Creek Loan, then to
reimburse Stephen M. Ross for operating deficit payments which he has made
(amounting to $175,000 for the nine months ended September 30, 1996 and
$3,102,732 cumulatively), then to additional interest, default rate and
guaranteed rate payments as set forth in the Subordinated Note and the
Additional Interest Guarantee.

         The Partnership maintained an account with the Prudential Institutional
Liquidity Portfolio Fund, an affiliate of PBP, for investment of its available
cash in short-term instruments in 1995 in accordance with the guidelines
established by the Partnership Agreement.

         Prudential Securities Incorporated ("PSI") owns 6,655 BUC$ at September
30, 1996.


NOTE 3 - Contingencies

         On or about October 18, 1993, a putative class action, captioned Kinnes
et al. v. Prudential Securities Group, Inc. et al. (CV-93-654), was filed in the
United States District Court for the District of Arizona, purportedly on behalf
of investors in the Partnership, against the Partnership, PBP, PSI and a number
of other defendants. Plaintiffs alleged violations of the Racketeer Influenced
and Corrupt Organizations Act ("RICO") statutes, breach of fiduciary duty, fraud
and deceit, negligence, and demanded an accounting. Plaintiffs sought
unspecified compensatory, punitive and treble damages, and rescission, including
costs and attorneys' fees, but the only relief sought against the Partnership
was an accounting. The defendants filed a motion to dismiss on December 22,
1993.

         By order of the Judicial Panel on Multidistrict Litigation dated April
14, 1994, the Kinnes case, together with a number of other actions not involving
the Partnership, were transferred to a single judge of the United States
District Court for the Southern District of New York and consolidated for
pretrial proceedings under the caption In re Prudential Securities Incorporated
Limited Partnerships Litigation (MDL Docket 1005). On June 8, 1994, plaintiffs
in the transferred cases filed a complaint that consolidated the previously
filed complaints and named as defendants, among others, PSI, certain of its
present and former employees and the General Partners. The Partnership was not
named a defendant in the consolidated complaint, but the name of the Partnership
was listed as being among the limited partnerships at issue in the case.

         On August 9, 1995 PBP, PSI and other Prudential defendants entered into
a Stipulation and Agreement of Partial Compromise and Settlement with legal
counsel representing plaintiffs in the consolidated actions. The court
preliminarily approved the settlement agreement by order dated August 29, 1995
and, following a hearing held November 17, 1995, found that the agreement was
fair, reasonable, adequate and in the best interests of the plaintiff class. The
court gave final approval to the settlement, certified a class of purchasers of
specific limited partnerships, including the Partnership, released all settled
claims by members of the class against the PSI settling defendants and
permanently barred and enjoined class members from instituting, commencing and
prosecuting any settled claim against the released parties. The full amount due
under the settlement agreement has been paid by PSI. The consolidated action
remains pending against the Related General Partner and certain of its
affiliates.

         The Related General Partner has been engaged in settlement negotiations
with counsel for the plaintiffs. In the event a settlement can not be reached,
the Related General Partner believes it has meritorious defenses to the
consolidated complaint and intends to vigorously defend this action.


                                      -7-
<PAGE>
                               EAGLE INSURED L.P.
                             (a limited partnership)
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996
                                   (Unaudited)


NOTE 4 - Subsequent Events

         In November 1996, distributions of approximately $627,000 and $13,000
were paid to the BUC$holders and General Partners, respectively, for the quarter
ended September 30, 1996.


                                      -8-

<PAGE>

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


Liquidity and Capital Resources
-------------------------------

        The Partnership originally invested in four mortgage loans which finance
multifamily residential rental property ("Mortgages") one of which was prepaid
in 1994.

        All base interest and initially at least 90% in the aggregate of the
principal of the loans made by the Partnership are coinsured by the FHA (80% of
the 90%) and an affiliate of the Related General Partner (20% of the 90%), with
the remaining 10% of the Partnership's original portfolio comprised of uninsured
non-interest bearing equity loans made directly to the same developers as are
the Mortgages.

        The Partnership is entitled to receive additional interest on each
Mortgage from the annual net cash flow of the development and from a percentage
of the residual value upon sale or refinancing. The receipt of additional
interest is dependent upon the economic performance of the underlying
properties. The Partnership received additional interest payments of
approximately $77,000 from Woodgate Manor during the nine months ended September
30, 1996 all of which was received in the second quarter.

        Stephen M. Ross has guaranteed repayment of the principal and interest
on a loan to the Cross Creek developer. See Note 2 to the financial statements
for further information. Mr. Ross remains in compliance with his obligations
under the Guarantee Agreement and Amendment to the Guarantee. However,
significant portions of his assets are in the form of partnership interests and
corporate stock which are pledged or are otherwise illiquid. Furthermore, a
significant portion of the cash flow which Mr. Ross would otherwise be expected
to receive from his business operations is presently pledged to meet other
obligations. Mr. Ross also has contingent liabilities that, if simultaneously
called upon, could result in Mr. Ross having insufficient liquid assets to meet
all of his current liabilities. There can be no assurance that Mr. Ross will
have the liquidity necessary to continue to comply with his obligations under
the Guarantee Agreement. In addition, Mr. Ross has capitalized the Related
General Partner with a demand promissory note and, if called upon to pay all or
a portion of this note, there is no assurance that he will have the liquidity
necessary to meet such demand.

        At the beginning of the year, the Partnership had cash and cash
equivalents of approximately $1,146,000. After the receipt of net cash flow from
operations, principal payments received on mortgage loans and the payment of
distributions, the Partnership had approximately $1,229,000 in cash and cash
equivalents at September 30, 1996. The third quarter distribution of
approximately $627,000 was paid to BUC$holders in November 1996 from adjusted
cash flow from operations. Debt service payments from mortgage loans are
anticipated to provide sufficient liquidity to meet the operating expenditures
of the Partnership and to pay distributions in the future.

        Management is not aware of any trends or events, commitments or
uncertainties, which have not otherwise been disclosed, that will or are likely
to impact liquidity in a material way. All base interest and the principal of
the Partnership's investments in mortgage loans are insured or co-insured by the
FHA and a private mortgage lender (which is an affiliate of the Related General
Partner). The Partnership's investment in unsecured non-interest bearing equity
loans (which represent approximately 10% of the Partnership's original
portfolio) are secured by a Partnership interest in properties which are
diversified by location so that if one state is experiencing downturns in the
economy, the remaining properties may be experiencing upswings. However, the
geographic diversifications of the portfolio may not protect against a general
downturn in the national economy.


Results of Operations
---------------------

        The Partnership's net income for the three and nine months ended
September 30, 1996 decreased by approximately $57,000 and $49,000 as compared to
the corresponding periods in 1995 due to the reasons discussed below.


                                      -9-
<PAGE>

        Interest income from temporary investments decreased by approximately
$2,000 and $7,000 for the three and nine months ended September 30, 1996 as
compared to the corresponding periods in 1995 primarily due to a decrease in
interest rates.

        General and administrative expenses decreased approximately $12,000 and
$20,000 for the three and nine months ended September 30, 1996 as compared to
the corresponding periods in 1995 primarily due to an overaccrual of legal
expenses at September 30, 1995 which was corrected in the fourth quarter of
1995.


Additional Information
----------------------

        The following table lists the respective occupancy rates at the
properties securing Mortgages as of October 27, 1996:

        Property                           Location                  Occupancy %
        --------                           --------                  -----------

        Cross Creek Apartments             Charlotte, NC                96.4%
        Weatherly Walk Apartments          Fayetteville, GA             97.4%
        Woodgate Manor                     Gainesville, FL              95.2%


                                      -10-
<PAGE>
                           PART II. OTHER INFORMATION



Item 1.  Legal Proceedings - Incorporated by reference to Note 3 to the
         financial statements filed herewith in Item 1 of Part I of the
         Partnership's Quarterly Report.

Item 2.  Changes in Securities - None

Item 3.  Defaults Upon Senior Securities - None

Item 4.  Submission of Matters to a Vote of Security Holders - None

Item 5.  Other Information - None

Item 6.  Exhibits and Reports on Form 8-K

         (a) Exhibits:

             3(a) and 4(a) Agreement of Limited Partnership, as amended
                           (incorporated by reference to Exhibits 3(a) and 4(a)
                           to the Partnership's Prospectus, dated December 11,
                           1987, filed pursuant to Rule 424(b) under the
                           Securities Act of 1933, File No. 33-17059).

             3(b) and 4(b) Certificate of Limited Partnership, as
                           amended (incorporated by reference to Exhibits 3(a)
                           and 4(a) to the Registration Statement on Form S-11,
                           (File No. 33-17059) dated November 17, 1987 and to
                           Amendment No. 2 to such Registration Statement dated
                           December 2, 1987).

             27            Financial Data Schedule (filed herewith).

         (b) Reports on Form 8-K - None


                                      -11-
<PAGE>
                                   SIGNATURES
                                   ----------



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


                               EAGLE INSURED L.P.


                           By:  Related Federal Insured L.P.
                                A Delaware limited partnership, General Partner


                           By:  RFI Associates, Inc.
                                A Delaware corporation,
                                general partner of the General Partner



Date:  November 13, 1996        By: /s/ Alan P. Hirmes
                                    ------------------
                                    Alan P. Hirmes
                                    Vice President
                                    (Principal Financial Officer)





Date:  November 13, 1996        By: /s/ Richard A. Palermo
                                    ----------------------
                                    Richard A. Palermo
                                    Treasurer
                                    (Principal Accounting Officer)


                           By:  Prudential-Bache Properties, Inc.
                                A Delaware corporation, General Partner



Date:  November 13, 1996        By: /s/ Eugene D. Burak
                                    -------------------
                                    Eugene D. Burak
                                    Vice President


                                      -13-