<PAGE>



                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                               AMENDMENT NO. 1
                                      TO
                                   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

For the transition period from

Commission file number 000-21673
                       ---------

                         AutoBond Acceptance Corporation
                         -------------------------------
             (Exact name of registrant as specified in its charter)

                Delaware                            75-2487218
                --------                            ----------
      (State or other jurisdiction               (I.R.S. Employer
    of incorporation or organization)           Identification No.)

    301 Congress Avenue, Austin, Texas                 78701
    ----------------------------------                 -----
    (Address of principal executive offices)         (Zip Code)

Registrant's telephone number, including area code (512) 435-7000
                                                   --------------

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             No   X
              -----          -----

    As of December 20, 1996, there were 6,526,086 shares of the registrant's
                     Common Stock, no par value, outstanding






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PART II

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)     Exhibits

               The following reflects all applicable Exhibits required under
        Item 601 of Regulation S-K:
<TABLE>
<S>            <C>
*  3.1         Restated Articles of Incorporation of the Company

*  3.2         Amended and Restated Bylaws of the Company

*  4.1         Specimen Common Stock Certificate

* 10.1         Amended and Restated Loan Origination, Sale and Contribution
               Agreement dated as of December 15, 1995 by and between the
               Company and AutoBond Funding Corporation I

* 10.2         Security Agreement dated as of May 21, 1996 among AutoBond
               Funding Corporation II, the Company and Norwest Bank Minnesota,
               National Association

* 10.3         Credit Agreement and Side Agreement, dated as of May 21,
               1996 among AutoBond Funding Corporation II, the Company and
               Peoples Life Insurance Company

* 10.4         Servicing Agreement dated as of May 21, 1996 among AutoBond
               Funding Corporation II, CSC Logic/MSA L.L.P., doing business as
               "Loan Servicing Enterprise", the Company and Norwest Bank
               Minnesota, National Association

* 10.5         Loan Acquisition Sale and Contribution Agreement dated as of
               May 21, 1996 by and between the Company and AutoBond Funding
               Corporation II
</TABLE>

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<PAGE>
<TABLE>
<S>            <C>
* 10.6         Second Amended and Restated Secured Revolving Credit Agreement dated as
               of July 31, 1995 between Sentry Financial Corporation and the Company

* 10.7         Management Administration and Services Agreement dated as of
               January 1, 1996 between the Company and AutoBond, Inc.

* 10.8         Employment Agreement dated November 15, 1995 between Adrian Katz and
               the Company

* 10.9         Employment Agreement dated February 15, 1996 between Charles A. Pond
               and the Company

* 10.10        Employment Agreement effective as of May 1, 1996 between William O. Winsauer
               and the Company

* 10.11        Vender's Comprehensive Single Interest Insurance Policy and Endorsements,
               issued by Interstate Fire & Casualty Company

* 10.12        Warrant to Purchase Common Stock of the Company dated March 12, 1996

* 10.13        Employee Stock Option Plan

* 10.14        Dealer Agreement, dated November 9, 1994, between the Company and Charlie
               Thomas Ford, Inc.

* 10.15        Automobile Loan Sale Agreement, dated as of September 30, 1996, among the
               Company, First Fidelity Acceptance Corp., and Greenwich Capital
               Financial Products, Inc.

  27.1         Financial Data Schedule
</TABLE>
-----------------------------------
*    Incorporated by reference from the Company's Registration Statement on Form
     S-1 (Registration No. 333-05359)


(b)     Reports on Form 8-K

        None.


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                                      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 on March 17, 1997.


                                            AutoBond Acceptance Corporation


                                              By: /S/ WILLIAM O. WINSAUER
                                                  ---------------------------
                                                  William O. Winsauer
                                                  (Chairman  of the Board and
                                                  Chief Executive Officer)


                                              By: /S/ WILLIAM J. STAHL
                                                  ---------------------------
                                                  William J. Stahl
                                                  (Vice President and Chief
                                                  Financial Officer)

                                       4