UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-K

                Annual Report Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934

For the Fiscal Year Ended                                        Commission File
December 31, 2000                                                 Number 0-16856

                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
           ----------------------------------------------------------
             (Exact name of registrant as specified in its charter)

          DELAWARE                                              13-3368726
---------------------------------                            -------------------
(State or other jurisdiction                                   (IRS Employer
of incorporation or organization)                            Identification No.)


5 CAMBRIDGE CENTER 9TH FLOOR, CAMBRIDGE, MA                        02142
-------------------------------------------                  -------------------
 (Address of principal executive offices)                        (Zip Code)

Registrant's telephone number, including area code              617-234-3000
                                                             -------------------

           Securities registered pursuant to Section 12(b) of the Act:

                                      NONE

           Securities registered pursuant to Section 12(g) of the Act:

                      UNITS OF LIMITED PARTNERSHIP INTEREST

         Indicate by check mark whether 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 and (2) has been subject to such filing
requirements for the past 90 days.

                     YES  X                        NO
                        -----                         -----

         There is no public market for the Limited Partnership Units.
Accordingly, information with respect to the aggregate market value of Limited
Partnership Units held by non-affiliates of Registrant has not been supplied.

         Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K [X].

                       DOCUMENTS INCORPORATED BY REFERENCE
                       -----------------------------------

                                      None

Exhibit Index:  page 36

<PAGE>

PART I

ITEM 1. BUSINESS

GENERAL

Resources Accrued Mortgage Investors 2, L.P. (the "Registrant"), formerly
Resources Accrued Mortgage Investors L.P. - Series 87 and Resources Accrued
Mortgage Investors L.P. - Series 88, was organized as a Delaware limited
partnership on August 14, 1986. The general partners of the Registrant are RAM
Funding Inc. (the "Managing General Partner"), and Presidio AGP Corp. (the
"Associate General Partner"). The Associate General Partner and the Managing
General Partner are collectively referred to herein as the "General Partners".
The General Partners are all ultimately wholly-owned subsidiaries of Presidio
Capital Corporation, a British Virgin Islands corporation ("Presidio"). See
"Management/Employees" below.

In 1988, the Registrant sold, pursuant to a registration statement filed with
the Securities Exchange Commission, 187,919 units of limited partnership
interest (the "Units") for gross proceeds aggregating $46,979,750. Pursuant to
the terms of the Registrant's partnership agreement, any subscription proceeds
not invested by April 12, 1990 where required to be returned to the investors.
At April 12, 1990, the Registrant had not invested $18,405,847 of the original
gross proceeds. Accordingly, such amount was returned to the investors.

The principal business of the Registrant is and has been to invest primarily in
"zero coupon" first and junior mortgage loans ("Mortgage Loans") on properties
owned or acquired principally by privately and publicly syndicated limited
partnerships originally sponsored by affiliates of Integrated Resources, Inc.
("Integrated"), the original owner of the Managing General Partner. The Mortgage
Loans had original terms of approximately twelve years with all interest and
principal due and payable at the maturity or prepayment of the Mortgage Loan.
See "Investments of Registrant" below.

MANAGEMENT/EMPLOYEES

Registrant does not have any employees. The business of the Registrant is
managed by the General Partners, their affiliates and agents. Through November
2, 1994, the Managing General Partner was a wholly-owned subsidiary of
Integrated. On November 3, 1994, as a result of the consummation of the
reorganization plan relating to Integrated's bankruptcy, indirect ownership of
the Managing General Partner and the Corporate General Partner was purchased by
Presidio. Further, on February 28, 1995, the Associate General Partner replaced
Z Square G Partners II as the associate general partner of Registrant. As a
result, all of the General Partners became ultimately wholly-owned by Presidio.
Presidio, in turn, is controlled by NorthStar Capital Investment Corp., a
Maryland corporation ("NorthStar").

Presidio previously retained Wexford Management LLC ("Wexford") to provide
consulting and administrative services to Presidio and its affiliates, including
the General Partners and Registrant. The agreement with Wexford expired on May
3, 1998 at which time Presidio entered into a management agreement with
NorthStar Presidio Management Company, LLC ("NorthStar Presidio"). Under the
terms of the management agreement, NorthStar Presidio provided the day-to-day
management of Presidio and its direct and indirect subsidiaries and affiliates.

On October 21, 1999, Presidio entered into a Services Agreement with AP-PCC III,
L.P. (the "Agent") pursuant to which the Agent was retained to provide asset
management and investor relation services to Registrant and other entities
affiliated with Registrant.

As a result of this agreement, the Agent has the duty to direct the day to day
affairs of Registrant, including, without limitation, reviewing and analyzing
potential sale, financing or restructuring proposals regarding the Registrant's
assets, preparation of all reports, maintaining records and maintaining bank


                                       2
<PAGE>

accounts of Registrant. The Agent is not permitted, however, without the consent
of Presidio, or as otherwise required under the terms of the Limited Partnership
Agreement to, among other things, cause Registrant to sell or acquire an asset
or file for bankruptcy protection.

In order to facilitate the Agent's provision of the asset management services
and the investor relation services, effective October 25, 1999, the officers and
directors of the General Partners resigned and nominees of the Agent were
elected as the officers and directors of the General Partners. The Agent is an
affiliate of Winthrop Financial Associates, a Boston based company that provides
asset management services, investor relation services and property management
services to over 150 limited partnerships which own commercial property and
other assets. The General Partners do not believe this transaction will have a
material effect on the operations of Registrant.

INVESTMENTS OF REGISTRANT

Registrant originally invested 100% of the non-returned portion of its net
proceeds in four Mortgage Loans in the original amount of $23,323,513, including
interest of $23,513, one of which is still outstanding at December 31, 2000. In
June 1992, the senior mortgage lender on one of Registrant's investments, the
Promenade Loan, foreclosed on the property securing its loan and Registrant lost
its entire investment. During 1999, Registrant received proceeds in settlement
of the Harborista and Twin Oak loans. As of March 1, 2001, Registrant had an
investment in one remaining Mortgage Loan in the original amount of $6,500,000.
All interest and principal is due and payable at maturity and there are no
current payments due. Following is a description of the status of Registrant's
investments:

For the years ended December 31, 2000, 1999 and 1998, the percentage of
Registrant's revenue attributable to interest on short-term investments was
100%, 67.85% and 86.16%, respectively.

     A. SIERRA MARKETPLACE LOAN

On February 10, 1989, Registrant made a $6,500,000 first Mortgage Loan (the
"Sierra Loan") to High Cash Partners, L.P. (the "Sierra Borrower"), a public
limited partnership originally sponsored by Integrated. The Sierra Loan is
secured by a shopping center commonly known as the Sierra Marketplace located in
Reno, Nevada (the "Sierra Property"). The Sierra Property consists of
approximately 233,000 square feet of net rentable area. The shopping center
occupies 18.67 acres, consisting of two main buildings and three anchor tenant
buildings with surface parking for 1,184 automobiles.

The total amount, including fees, allocated to the Sierra Loan from the gross
proceeds of Registrant's offering was $7,715,134 including payment to the
Managing General Partner of a mortgage placement fee of $385,757.

The Sierra Loan, which bears interest at a rate of 11.22% per annum, compounded
monthly and was scheduled to mature on February 28, 2001, at which time a
balloon payment of $24,966,653, together with additional interest (as described
below) if any, was to be due and payable, was modified on December 21, 2000.
Prior to its modification, the Sierra Borrower was required to provide, on
request, a current appraisal of the Sierra Property. If the sum of (i) the
principal balance of the Sierra Loan plus all other then outstanding
indebtedness secured by the Sierra Property plus (ii) all accrued and unpaid
interest in excess of 5% per annum of the principal balance of such mortgages,
exceed 85% of the current appraised value, the Sierra Borrower shall be
immediately obligated to pay such excess. In the event that such excess becomes
due, the Sierra Borrower may not have sufficient liquidity to satisfy its
obligation to Registrant. The Sierra Borrower could be forced to sell its
property or seek other relief, including protection under the bankruptcy laws.
In 1997, the Managing General Partner prepared a valuation of the Sierra
Property and based on that valuation, no additional amounts were then presently
due. However, as a result of such valuation, the Sierra Borrower wrote the
Sierra Property down on its books to what its management believed to be its
estimated fair market value of $15,875,000. The Managing General Partner
performed its own evaluation and determined that this estimate was a fair
representation of the


                                       3
<PAGE>

property value at that time. The balance of the Sierra Loan at December 31, 1996
was approximately $15,979,000 and it was unlikely that any additional interest
accrued on the Sierra Loan would ultimately be recovered from the value of the
underlying property. Consequently, as of January 1, 1997, Registrant ceased
accruing interest on the Sierra Loan.

The Sierra Borrower advised the Registrant in 2000 that it believed that the
value of the Sierra Property had increased since the beginning of 1997 and that,
depending on the results of the appraisal, the value of the Registrant's
mortgage loan may exceed the value at which the mortgage loan was then being
carried on the Registrant's financial statements. The Sierra Borrower also
requested that the Sierra Loan be restructured prior to its maturity (February
1, 2001). After extensive negotiations, on December 21, 2000 the Registrant and
the Sierra Borrower agreed to modify the Sierra Loan as follows:

     1. To extend the term of the loan until February 28, 2003.

     2. The Sierra Borrower placed in escrow a deed as well as documents
necessary to convey the property, which documents will be released to the
Registrant on the earlier (A) March 1, 2003, (B) at such time as a third-party
purchaser is identified to acquire the Sierra Property or (C) at any time after
March 1, 2002 if the Registrant deems it necessary to protect its economic
interest.

     3. The Sierra Borrower will pay to the Registrant to be applied towards the
Sierra Loan all cash flow generated from the property in excess of $100,000 per
year.

     4. The Sierra Borrower will have an appraisal prepared on the Sierra
Property to determine if an excess payment as described above is due and, if
such a payment is due, to make such payment. On March 27, 2001, the Registrant
received an appraisal from the Borrower which valued the Sierra Property at
$20,000,000. As a result, based on current information available to the
Registrant, no excess payment is presently required.

     5. Sierra Borrower has the right to prepay the loan after the initial
maturity date (February 2001) by paying to the Registrant the sum of the then
unpaid principal balance of the loan together with accrued interest and other
charges due under the loan and 66% of the value of the Sierra Property in excess
of such amount.

In addition, the Registrant now has significantly more input over the operation
of the Sierra Property including, the selection of the management company,
leasing programs and capital improvements. In this regard, an affiliate of the
Agent began providing property management services at the Sierra Property
effective March 2001. In light of these enhanced rights, the Registrant believes
that if the Sierra Property can be leased-up and renovated, the value of the
shopping center may be significantly enhanced resulting in a loan value well in
excess of the current carrying value.

In January 2000, the Partnership and Ben Farahi who, according to the Western
Offer (as hereinafter defined) is a partner in the sole member of Western,
entered into an agreement (the "Agreement") pursuant to which Mr. Farahi was
provided with a list of limited partners of the Partnership. Shortly thereafter,
Western proposed to make a tender offer for a number of Units which did not
require that Western comply with Regulation 14d of the Securities Exchange Act
of 1934. However, Western never made such offer.

On January 23, 2001, Western Real Estate Investments, LLC ("Western"), through
its attorneys' Much Shelist Freed Denenberg Ament & Rubinstein, P.C., made an
offer to purchase the Sierra Loan for $12,500,000 which offer was subsequently
increased to $15,000,000 on January 26, 2001. The General Partners advised
Western's attorneys that the offer was declined because the General Partners
believe that the value of the Sierra Property could ultimately be well in excess
of the price offered. The General Partners advised Western that if certain
events favorable to the Sierra Property were to occur, the Sierra Property could
have a value of as high as $19,000,000. It is the Registrant's understanding
that an affiliate of Western


                                       4
<PAGE>

owns the property adjacent to the Sierra Property and desires to ultimately own
the Sierra Property. See "Tender Offers" below.

     B. HARBORISTA LOAN

On February 13, 1989, Registrant made a second Mortgage Loan (the "Harborista
Loan") to Harborista Associates L.P. (the "Harborista Borrower"), a private
limited partnership originally sponsored by Integrated, in the original
principal amount of $10,000,000. The Harborista Loan was secured by an office
building commonly known as the Harbor Plaza, located in Boston, Massachusetts
("Harbor Plaza"). Harbor Plaza consists of a 13-story office building on .88
acres containing approximately 334,000 square feet of rentable space, located in
the Fort Point Channel section of downtown Boston. Harbor Plaza was 100% leased
pursuant to a master net lease (the "Master Lease") which, subject to a right of
early termination by the Harborista Borrower, expired on November 30, 1998. On
March 30, 1999, Registrant sold its interest in the Harborista Loan for net
proceeds of approximately $800,000

The Harborista Loan bore interest at a rate of 13.307% per annum, compounded
monthly and was originally due on December 1, 1998 at which time a balloon
payment of $36,568,146 would have been payable.

The total amount, including fees, allocated to the loan from the gross proceeds
of Registrant's offering was $11,897,345 including payment to the Managing
General Partner of a mortgage placement fee of $594,867.

During 1993, management determined that interest on the Harborista Loan should
cease to accrue and that an allowance for loan losses was necessary for the
entire carrying value of the Harborista Loan which, at that time, was
$10,618,380.

Harbor Plaza was also encumbered by a first mortgage loan (the "First Mortgage")
in the original amount of $24,475,000. The First Mortgage was due to mature on
December 1, 1995, but was extended until January 1, 1999. On February 9, 1999,
the holder of the First Mortgage filed a motion for foreclosure of the First
Mortgage and a foreclosure sale was scheduled to be held in March 1999.

During the latter part of 1998 and continuing into 1999 Registrant attempted to
arrange for financing in order to satisfy the First Mortgage and protect
Registrant's interest in Harbor Plaza. Registrant was unable to obtain financing
and, on March 29, 1999, Registrant sold its interest in the Harborista Loan to
the holder of the First Mortgage for gross proceeds of $1,000,000, exclusive of
legal and other costs related to the transaction of approximately $200,000.

Following its acquisition of the Harborista Loan, the holder of the First
Mortgage foreclosed on its interests in the two mortgages and acquired Harbor
Plaza. On March 29, 1999, the holder of the First Mortgage entered into an
agreement with Charbird Enterprises LLC ("Charbird"), an affiliate of Northstar
and the General Partners, for the performance of services in connection with the
marketing of Harbor Plaza. Charbird assigned to Northstar its right to receive a
substantial portion of amounts paid under the agreement and Northstar agreed to
indemnify Charbird for any liabilities under the agreement. Harbor Plaza was
sold in December 1999 for approximately $50,500,000. Charbird received a fee of
$14,050,884 under the agreement, $12,645,796 of which was paid to Northstar. See
"Item 3. Legal Proceedings" below.

     C. TWIN OAK LOAN

Registrant held a $1,200,000 second Mortgage Loan (the "Twin Oak Loan") made to
Twin Oak Plaza Associates (the "Twin Oak Borrower"), a limited partnership
originally sponsored by Integrated, which was secured by the Twin Oak Shopping
Center, located in Fort Lauderdale, Florida (the "Twin Oak Property").


                                       5
<PAGE>

The Twin Oak Property is a 113,217 square foot community retail shopping center
which includes a 15,000 square foot addition built by the Twin Oak Borrower.

The Twin Oak Property was also encumbered by a first mortgage in the original
amount of $4,250,000, held by Southern Life Assurance Company (the "Southern
Life Mortgage"). The Southern Life Mortgage bore interest at a rate of 10% per
annum plus contingent interest, and was payable in 119 equal monthly
installments of $36,550. The maturity date of the Southern Life Mortgage,
originally July 1, 1993, was extended by three years to July 1, 1996. The terms
and conditions of the extension were essentially the same as the original loan.
During October 1997, the Twin Oak borrower and its first mortgage lender
formally agreed to extend the maturity date to July 1, 1998. It was the
intention of the Twin Oak General Partners to sell the property prior to the
July 1, 1998 extended maturity date.

During the year ended 1996, a provision of loan losses of $1,515,0000 was
recorded on the Twin Oak loan. A $400,000 allowance for loan losses was recorded
during 1998 to reduce the carrying value of the loan to the estimated amount
anticipated to be received by the Partnership under the terms outlined in this
new contract.

The property was marketed for sale during the first and second quarters of 1998,
and Twin Oak entered into a formal contract of sale ("Contract #1") in May of
1998. The purchaser failed to perform on Contract #1 in August of 1998. The
property was again marketed for sale. During this period, the Southern Life
Mortgage matured on July 1, and was not repaid. On October 20, 1998, a formal
agreement was executed in which the first mortgage lender again agreed to extend
the maturity of the loan to July 1, 1999 in exchange for a modification to the
interest rate and payment of an extension fee. On October 15, 1998, a new
contract for sale was executed.

On March 1, 1999, the Twin Oak Property was sold for a gross purchase price of
approximately $4,150,000 (subject to customary adjustments at closing). The Twin
Oak Borrower used the proceeds from the sale to repay the first mortgage to
Southern Life Mortgage and on May 5, 1999, Registrant received approximately
$237,000 representing the carrying value of the Twin Oak Loan. During December,
1999, Registrant received an additional $99,156 representing residual proceeds
from the Twin Oak sale and recorded such amount as additional loan loss recovery
in 1999.

TENDER OFFERS

On January 17, 2001, Bighorn Associates I, LLC ("Bighorn"), an affiliate of
Presidio, commenced a tender offer to acquire up to 57,000 Units for a price of
$90 per unit. Subsequent to Bighorn's offer, Western commenced an offer to
acquire up to 40,000 Units for a price of $97 per unit. After a series of
amendments, both the Bighorn purchase price and the Western purchase price was
$127 per Unit.

On March 16, 2001, Bighorn's offer expired and on March 20, 2001, Western's
offer expired. Based on its filings with the Securities and Exchange Commission,
Bighorn acquired 22,636 Units in its offer representing approximately 12.05% of
the total outstanding Units. As of March 28, 2001, Western had not yet made its
final filing with the Securities and Exchange Commission indicating the number
of Units they acquired.

ITEM 2. PROPERTIES

None


                                       6
<PAGE>

ITEM 3. LEGAL PROCEEDINGS

Dr. Warren Heller, on behalf of himself and all others similarly situated, v.
RAM Funding Inc., Presidio AGP Corp., NorthStar Capital Investment Corp. and
Charbird Enterprises, LLC, defendants, and Resources Accrued Mortgage Investors
2, L.P., as nominal defendant, Court of Chancery, New Castle County, Delaware
(Case No. 18059). On or about May 19, 2000, Dr. Warren Heller, a limited
partner, commenced a putative class action and derivative lawsuit in the
Delaware Chancery Court seeking, among other things, monetary damages resulting
from purported breaches of fiduciary duties and breaches of the Registrant's
partnership agreement in connection with the March 1999 sale of the Harborista
Loan and the marketing of Harbor Plaza which secured the Harborista Loan. In
addition, the action alleges breaches of fiduciary duty in connection with the
purported failure of the Registrant to distribute cash and the purported failure
of the Registrant to enforce the provisions of the loan secured by the Reno,
Nevada property. The defendants have preliminarily agreed to enter into a
Memorandum of Understanding (the "MOU") settling this lawsuit. As currently
contemplated, the MOU (i) provides for an $8,000,000 payment by the defendants
to the Registrant and (ii) requires that the Registrant distribute to its
partners the $8,000,000 payment, less fees and expenses awarded by the court to
plaintiff's counsel (which amount is not expected to exceed 20% of the
settlement amount), along with $1,000,000 of the Registrant's cash reserves. The
MOU is subject to many conditions including execution of a definitive settlement
agreement, completion of discovery by plaintiffs and court approval of the
settlement following notice to limited partners. Discovery is currently ongoing
and it is anticipated that discovery will be concluded in the second quarter of
2001. Accordingly, there can be no assurance that the settlement will be
consummated on the terms currently contemplated or that the settlement will be
consummated at all.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None


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<PAGE>

PART II

ITEM 5. MARKET FOR REGISTRANT'S SECURITIES AND RELATED SECURITY HOLDER MATTERS

There is no established public trading market for the Units of Registrant.

There are restrictions set forth in the Partnership Agreement, which may limit
the ability of a limited partner to transfer units. Such restrictions could
impair the ability of a limited partner to liquidate its investment in the event
of an emergency or for any other reason.

As of January 1, 2001 there were approximately 3,367 holders of Units of
Registrant, owning an aggregate of 187,919 Units (including Units held by the
initial limited partner).

There are no material legal restrictions set forth in the Partnership Agreement
upon Registrant's present or future ability to make distributions. No
distributions were made in 2000 and 1999.

On January 17, 2001, Bighorn commenced a tender offer to acquire up to 57,000
Units for a price of $90 per unit. Subsequent to Bighorn's offer, Western
commenced an offer to acquire up to 40,000 Units for a price of $97 per unit.
After a series of amendments, both the Bighorn purchase price and the Western
purchase price was $127 per Unit.

On March 16, 2001, Bighorn's offer expired and on March 20, 2001, Western's
offer expired. Based on its filings with the Securities and Exchange Commission,
Bighorn acquired 22,636 Units in its offer representing approximately 12.05% of
the total outstanding Units. As of March 28, 2001, Western had not yet made its
final filing with the Securities and Exchange Commission indicating the number
of Units they acquired.


                                       8
<PAGE>

ITEM 6. SELECTED FINANCIAL DATA.

<TABLE>
<CAPTION>
                                                     YEAR ENDED DECEMBER 31,
                           ---------------------------------------------------------------------------

                               2000            1999            1998            1997            1996
                           -----------     -----------     -----------     -----------     -----------
<S>                        <C>             <C>             <C>             <C>             <C>
Revenues                   $   252,169     $   256,051     $   168,888     $   165,064     $ 1,794,213

Net Income                 $    75,541     $   264,554     $   481,315 (2) $    72,682     $   123,888 (1)

Net Income

    Per Unit               $       .39     $      1.37     $      2.50 (2) $       .38     $       .64 (1)

Total Assets               $20,321,625     $20,288,723     $20,019,207     $19,537,040     $19,501,016

Total Partner's Equity     $20,264,310     $20,188,769     $19,924,215     $19,442,900     $19,370,218
</TABLE>

(1)      Net of provision for loan losses of $1,515,000 or $7.86 per Unit.
(2)      Net of provision for loan losses of $400,000 or $2.08 per Unit on the
         Twin Oak loan and recovery of loan losses of $800,000 or $4.15 per unit
         on the Harborista loan.



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<PAGE>

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

The matters discussed in this Form 10-K contain certain forward-looking
statements and involve risks and uncertainties (including changing market
conditions, competitive and regulatory matters, etc.) detailed in the disclosure
contained in this Form 10-K and the other filings with the Securities and
Exchange Commission made by the Registrant from time to time. The discussion of
the Registrant's liquidity, capital resources and results of operations,
including forward-looking statements pertaining to such matters, does not take
into account the effects of any changes to the Registrant's operations.
Accordingly, actual results could differ materially from those projected in the
forward-looking statements as a result of a number of factors, including those
identified herein.

This item should be read in conjunction with the financial statements and other
items contained elsewhere in the report.

LIQUIDITY AND CAPITAL RESOURCES

The Registrant initially invested the net proceeds of its public offering in
four zero coupon first and junior mortgage loans aggregating $23,300,000. These
loans were secured by properties owned principally by privately and publicly
syndicated limited partnerships originally sponsored by affiliates of the
general partners. The Registrant currently retains an investment in one of the
original four mortgage loans, which had an initial principal balance of
approximately $6,500,000. During the first quarter of 1997, the obligor under
the Registrant's remaining mortgage loan wrote the property down to what its
management believed to be its estimated fair market value of $15,875,000.
Management of the Registrant performed its own evaluation at that time and
determined that this amount was a fair estimate of the property value. The
outstanding balance of the loan at December 31, 1996 was approximately
$15,979,000 and it was unlikely that any additional interest accrued on the loan
would ultimately be recovered from the value of the underlying property.
Consequently, as of January 1, 1997 the Registrant ceased accruing interest on
the loan. At December 31, 2000, the contractual balance of principal and accrued
interest on this loan was $24,506,244 and the Registrant had a carrying value in
this loan of $15,979,355.

The Registrant's remaining mortgage note contains a provision, which requires
the borrower to provide a current appraisal based upon certain conditions or in
some cases upon request. If an appraisal indicates the value of all indebtedness
senior to and including the Registrant's loan, taking into account principal
plus accrued interest in excess of 5% per annum, exceeds 85% of the then current
appraisal, the borrower must repay the indebtedness to a point where the 85%
loan to value ratio is restored.

The borrower advised the Registrant in 2000 that believes that the value of the
Sierra property had increased since the beginning of 1997 and that, depending on
the results of the appraisal, the value of the Registrant's mortgage loan may
exceed the value at which the mortgage loan was then being carried on the
Registrant's financial statements. In addition, the loan, which was scheduled to
mature on February 1, 2001, was extended and modified. See "Item 8. Financial
Statements and Supplementary Data", Note 4.

The Registrant's level of liquidity based on cash and cash equivalents increased
by $65,427 to $4,342,270 during the year ended December 31, 2000 as compared to
December 31, 1999. The increase is due to cash provided by operating activities.
Cash and cash equivalents are invested in short-term instruments and are
expected to be sufficient to pay administrative expenses during the term of the
Registrant. If the proposed settlement of the class action litigation is
consummated as currently contemplated, it is anticipated that the Registrant
will make a distribution to its partners, upon consummation of such settlement,
in an amount not less than $7,400,000 in the aggregate ($38.39 per unit),
$1,000,000 of which will be provided from existing capital reserves and the
balance from settlement proceeds. See "Item 8. Financial Statements and
Supplemental Data", Note 6.

Registrant uses working capital reserves provided from the proceeds of its
public offering and subsequent settlement amounts, and interest earned thereon
as its primary measure of liquidity. Registrant did not


                                       10
<PAGE>

anticipate making any distributions from cash flow during its first 8 to 12
years or operations, or until such time as the Mortgage loans mature or are
prepaid. Working capital reserves are invested in short-term instruments and are
expected to be sufficient to pay administrative expenses during the term of
Registrant. As of December 31, 2000, Registrant had approximately $4,337,000
invested in money market accounts which is included in cash and cash
equivalents.

During the latter part of 1998 and continuing into 1999, the Registrant
attempted to arrange for financing in order to satisfy the underlying First
Mortgage encumbering Harbor Plaza, the property underlying the Harborista Loan,
and protect the Registrant's interest in the Harborista Loan. The Registrant was
unable to obtain financing and, on March 29, 1999, the Registrant sold its
interest in the Harborista Loan to the holder of the First Mortgage for gross
proceeds of $1,000,000, exclusive of legal and other costs related to the
transaction of approximately $200,000.

Following its acquisition of the Harborista Loan, 470 Atlantic Avenue Management
Corp. ("470 Atlantic") foreclosed on its interests in the two mortgages and
acquired Harbor Plaza. On March 29, 1999, 470 Atlantic entered into an agreement
with Charbird Enterprises LLC ("Charbird"), an affiliate of NorthStar and the
General Partners, for the performance of services in connection with the
marketing of Harbor Plaza. Charbird assigned to NorthStar its right to receive a
substantial portion of amounts paid under the agreement and NorthStar agreed to
indemnify Charbird for any liabilities under the agreement. Harbor plaza was
sold in December 1999 for approximately $50,500,000. Charbird received a fee of
$14,050,884 under the agreement, $12,645,796 of which was paid to NorthStar. See
"Item 8. Financial Statements and Supplemental Data", Note 6.

On March 1, 1999, the Twin Oak Property was sold to an affiliate of NorthStar
Capital Investment Corp. ("NorthStar") for a gross purchase price of
approximately $4,150,000 (subject to customary adjustments at closing). The Twin
Oak Borrower used the proceeds from the sale to repay the first mortgage to
Southern Life Mortgage and on May 5, 1999, the Registrant received approximately
$237,000 representing the carrying value of the Twin Oak loan. During the year
ended December 31, 1999, the Registrant received an additional $99,156
representing residual proceeds from The Twin Oak sale and recorded such amount
as loan loss recovery during the year ended December 31, 1999.

Recently Issued Accounting Standards

The Financial Accounting Standards Board issued SFAS No. 137, "Accounting for
Derivative Instruments and Hedging Activities - Deferral of the Effective Date
of SFAS No. 133." The Statement deferred for one year the effective date of SFAS
No. 133, "Accounting for Derivative Instruments and Hedging Activities". The
Statement requires companies to recognize all derivatives on the balance sheet
as assets or liabilities, measured at fair value. Gains or losses resulting from
changes in the values of those derivatives would be accounted for depending on
the use of the derivative and whether they qualify for hedge accounting. This
Statement is effective for fiscal years beginning after June 15, 2000. The
Partnership believes that the effect of SFAS 133 on its financial statements
will be immaterial.

REAL ESTATE MARKET

The real estate market in Reno, Nevada has begun to recover from the effects of
the recession which included a substantial decline in the market value of
existing properties. However, due to increased competition from newly
constructed retail properties, Registrant's potential for realizing the full
value of its investment in Sierra Marketplace is considered unlikely.

Inflation has not had a material effect on the Registrant's recent operations or
financial condition and is not expected to have a material effect in the future.
Except as discussed above, management is not aware of any other known trends,
events, commitments, or uncertainties that will have a significant impact on
liquidity.


                                       11
<PAGE>

RESULTS OF OPERATIONS

2000 AS COMPARED TO 1999

Net income decreased by $189,013 to $75,541 for the year ended December 31, 2000
as compared to 1999, due to a decrease in revenue and an increase in costs and
expenses.

Revenues decreased by $3,882 for the year ended December 31, 2000 as compared to
the same period in 1999 due to a decrease in other income items, which was
substantially offset by an increase in short term investment interest resulting
from larger cash balances available for investment.

Costs and expenses increased by $185,131 for the year ended December 31, 2000 as
compared to the same period in 1999 due to higher professional fees in 2000 and
the recovery of loan loss in 1999, relating to the Twin Oaks property.

1999 AS COMPARED TO 1998

Registrant generated net income of $264,554 for the year ended December 31,
1999, as compared to net income of $481,315 for the year ended December 31,
1998. The decrease in net income was due primarily to 1998 result including
$400,000 of net loan loss recovery.

Revenues increased in 1999 to $256,051 from $168,888 in 1998 or an increase of
$87,163. The increase was the result of increased investment interest of $28,218
and other income increases of $58,945.

General and administrative expenses remained relatively constant in 1999 at
$90,653 compared to $87,573 in 1998 or an increase of $3,080.

Recovery of loan losses in 1999 was $99,156 from the Twin Oak property sale
compared to $800,000 in 1998 from the Harborista loan sale. The decrease from
1998 was partially offset by 1998 incurring $400,000 of loan losses for the Twin
Oak loan in 1998.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

The Registrant is not subject to market risk as its cash and cash equivalents
are invested in short term money market mutual funds. The Registrant has no
loans outstanding.


                                       12
<PAGE>

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

                   RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.

                              FINANCIAL STATEMENTS

                  YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998

                                      INDEX

                                                                 PAGE
                                                                NUMBER
                                                                ------

Independent Auditors' Report                                      14

Financial Statements - Years ended
  December 31, 2000, 1999 and 1998


       Balance sheets                                             16

       Statements of income                                       17

       Statement of partners' equity                              18

       Statements of cash flows                                   19

       Notes to financial statements                              20

All financial statement schedules are omitted because they are not applicable or
the required information is shown in the financial statements or notes thereto.


                                       13
<PAGE>

                          INDEPENDENT AUDITORS' REPORT

To the Partners

Resources Accrued Mortgage Investors 2, L.P.:

We have audited the accompanying balance sheet of Resources Accrued Mortgage
Investors 2, L.P. (a limited partnership) (the "Partnership") as of December 31,
2000 and the related statements of operations, partners' equity and cash flows
for the year then ended. These financial statements are the responsibility of
the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Resources Accrued Mortgage
Investors 2, L.P. (a limited partnership) as of December 31, 2000 and its
operations and cash flows for the year then ended in conformity with accounting
principles generally accepted in the United States of America.

                                                   /s/ Imowitz Koenig & Co., LLP

New York, New York
March 2, 2001


                                       14
<PAGE>

To the Partners of
Resources Accrued Mortgage Investors 2, L.P.
Cambridge, Massachusetts

                          INDEPENDENT AUDITOR'S REPORT

We have audited the accompanying balance sheet of Resources Accrued Mortgage
Investors 2 L.P. (a limited partnership) as of December 31, 1999 and the related
statements of operations, shareholders' equity and cash flows for each of the
two years in the period ended December 31, 1999. These financial statements are
the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Resources Accrued Mortgage
Investors 2 L.P. as of December 31, 1999 and the results of its operations and
its cash flows for each of the two years in the period ended December 31, 1999
in conformity with accounting principles generally accepted in the United States
of America.

/s/ Hays & Company

March 15, 2000
New York, New York


                                       15
<PAGE>

                  RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.

                                 BALANCE SHEETS

                                                        DECEMBER 31,
                                                ---------------------------

                                                    2000            1999
                                                -----------     -----------

ASSETS

Investment in mortgage loan                     $15,979,355     $15,979,355
Cash and cash equivalents                         4,342,270       4,276,843
Other receivables                                        --          32,525
                                                -----------     -----------

        Total Assets                            $20,321,625     $20,288,723
                                                ===========     ===========

LIABILITIES AND PARTNERS' EQUITY

Liabilities:

Accounts payable and accrued expenses           $    57,315     $    99,954
                                                -----------     -----------

        Total Liabilities                            57,315          99,954
                                                -----------     -----------

Commitments and Contingencies

Partners' Equity:

   Limited partners' equity (187,919 units
      issued and outstanding)                    19,757,727      19,684,075
   General partners' equity                         506,583         504,694
                                                -----------     -----------

     Total Partners' Equity                      20,264,310      20,188,769
                                                -----------     -----------

     Total Liabilities and Partners' Equity     $20,321,625     $20,288,723
                                                ===========     ===========



                       See notes to financial statements.

                                       16

<PAGE>

                  RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.

                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                  FOR THE YEARS ENDED DECEMBER 31,
                                               --------------------------------------

                                                  2000          1999           1998
                                               ---------     ---------      ---------
<S>                                            <C>           <C>            <C>
Revenues:

  Short-term investment interest               $ 252,169     $ 173,731      $ 145,513
  Other income                                        --        82,320         23,375
                                               ---------     ---------      ---------

     Total revenues                              252,169       256,051        168,888
                                               ---------     ---------      ---------

Costs and Expenses:

  General and administrative                     176,628        90,653         87,573
  Recovery of loan losses                             --       (99,156)      (800,000)
  Provision for loan losses                           --            --        400,000
                                               ---------     ---------      ---------

     Total costs and expenses                    176,628        (8,503)      (312,427)
                                               ---------     ---------      ---------

  Net income                                   $  75,541     $ 264,554      $ 481,315
                                               =========     =========      =========

Net income attributable to:

  Limited partners                             $  73,652     $ 257,940      $ 469,282

  General partners                                 1,889         6,614         12,033
                                               ---------     ---------      ---------

                                               $  75,541     $ 264,554      $ 481,315
                                               =========     =========      =========

Net income per unit of limited partnership
  interest (187,919 units outstanding)         $     .39     $    1.37      $    2.50
                                               =========     =========      =========
</TABLE>


                       See notes to financial statements.


                                       17

<PAGE>
                  RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.

                          STATEMENT OF PARTNERS' EQUITY

              FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998

<TABLE>
<CAPTION>
                                  LIMITED          GENERAL         TOTAL
                                 PARTNERS'        PARTNERS'      PARTNERS'
                                  EQUITY           EQUITY         EQUITY
                                -----------     -----------     -----------
<S>                             <C>             <C>             <C>
Balance - January 1, 1998       $18,956,853     $   486,047     $19,442,900

 Net income                         469,282          12,033         481,315
                                -----------     -----------     -----------

Balance - December 31, 1998      19,426,135         498,080      19,924,215

 Net income                         257,940           6,614         264,554
                                -----------     -----------     -----------

Balance - December 31, 1999      19,684,075         504,694      20,188,769

 Net income                          73,652           1,889          75,541
                                -----------     -----------     -----------

Balance - December 31, 2000     $19,757,727     $   506,583     $20,264,310
                                ===========     ===========     ===========
</TABLE>


                       See notes to financial statements.


                                       18

<PAGE>

                  RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.

                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                               FOR THE YEARS ENDED DECEMBER 31,
                                                        ---------------------------------------------

                                                            2000             1999             1998
                                                        -----------      -----------      -----------
<S>                                                     <C>              <C>              <C>
Cash Flows from Operating Activities:

Net income                                              $    75,541      $   264,554      $   481,315
    Adjustments to reconcile net income to
    net cash provided by operating activities:

    Recovery of loan losses                                      --          (99,156)        (800,000)
    Provision for loan losses                                    --               --          400,000

    Changes in operating assets and liabilities:

      Other receivables                                      32,525          (21,764)           1,821
      Accounts payable and accrued expenses                 (42,639)           4,962              852
                                                        -----------      -----------      -----------


Net cash provided by operating activities                    65,427          148,596           83,988
                                                        -----------      -----------      -----------

Cash Flows from Investing Activities:

  Payments received from sale of mortgage loan, net              --          800,000               --
  Mortgage loan payments received                                --          335,834               --
                                                        -----------      -----------      -----------

Cash provided by investing activities                            --        1,135,834               --
                                                        -----------      -----------      -----------

Net increase in cash and cash equivalents                    65,427        1,284,430           83,988

Cash and cash equivalents, beginning of period            4,276,843        2,992,413        2,908,425
                                                        -----------      -----------      -----------

Cash and cash equivalents, end of period                $ 4,342,270      $ 4,276,843      $ 2,992,413
                                                        ===========      ===========      ===========
</TABLE>


                       See notes to financial statements.


                                       19
<PAGE>

                  RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                        DECEMBER 31, 2000, 1999 AND 1998

1.   ORGANIZATION

     Resources Accrued Mortgage Investors 2, L.P. (formerly Resources Accrued
     Mortgage Investors L.P. - Series 87 and Resources Accrued Mortgage
     Investors - Series 88), a Delaware limited partnership (the "Partnership"),
     was formed in August 1986 under the Delaware Revised Uniform Limited
     Partnership Law for the purpose of investing primarily in senior and junior
     accrued interest mortgage loans on properties owned or acquired principally
     by publicly or privately syndicated limited partnerships sponsored by
     affiliates of Integrated Resources, Inc. ("Integrated"), the former parent
     of the general partners. During 1994, Integrated's indirect ownership of
     the managing general partner was purchased by Presidio Capital Corp.
     ("Presidio").

     The Partnership originally offered 400,000 units of limited partnership
     interest (the "Units") pursuant to the Prospectus dated April 12, 1988 (the
     "Prospectus"). Since all gross proceeds that were raised had not been
     invested or committed for investment, the Partnership was obligated, under
     the terms of the Prospectus, to return such uninvested funds. The
     Partnership distributed these funds in the amount of $19,263,445, including
     interest of $857,598, in August 1990. Additionally, the Partnership made a
     second related distribution of $606,978 on October 30, 1990.

     The managing general partner of the Partnership, RAM Funding, Inc. and the
     associate general partner, Presidio AGP Corp. (collectively referred to as
     the "General Partners") are wholly-owned subsidiaries of Presidio. The
     General Partners and certain affiliates of the General Partners, are
     general partners in several other limited partnerships which are also
     affiliated with Presidio, and which are engaged in businesses that are, or
     may be in the future, in direct competition with the Partnership.

     Subject to the rights of the limited partners, Presidio controls the
     Partnership through its indirect ownership of the General Partners.
     Presidio is indirectly controlled by NorthStar Capital Investment Corp.
     ("NorthStar"), a Maryland Corporation.

     Presidio entered into a management agreement with NorthStar Presidio
     Management Company LLC ("NorthStar Presidio"), an affiliate of NorthStar.
     Under the terms of the management agreement, NorthStar Presidio provides
     the management of Presidio's operation and its direct and indirect
     subsidiaries and affiliates.

     On October 21, 1999, Presidio entered into a Services Agreement with AP-PCC
     III, L.P. (the "Agent") pursuant to which the Agent was retained and is
     compensated by Presidio to provide asset management and investor relation
     services to the Partnership and other entities affiliated with the
     Partnership, which were previously provided by NorthStar Presidio.

     As a result of this agreement, the Agent has the duty to direct the
     day-to-day affairs of the Partnership, including, without limitation,
     reviewing and analyzing potential sale, financing or restructuring
     proposals regarding the Partnership's assets, preparation of all
     Partnership reports, maintaining Partnership records and maintaining bank
     accounts of the Partnership. The Agent is not permitted, however, without
     the consent of Presidio, or as otherwise required under the terms of the
     Partnership Agreement to, among other things, cause the Partnership to sell
     or acquire an asset or file for bankruptcy.


                                       20
<PAGE>

                  RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                        DECEMBER 31, 2000, 1999 AND 1998

1.   ORGANIZATION (CONTINUED)

     In order to facilitate the provision by the Agent of the asset management
     services and the investor relation services, effective October 25, 1999,
     the officers and directors of the General Partner resigned and nominees of
     the Agent were elected as the officers and directors of the General
     Partner. The Agent is an affiliate of Winthrop Financial Associates, a
     Boston based company that provides asset management services, investor
     relation services and property management services to over 150 limited
     partnerships which own commercial property and other assets. The General
     Partner does not believe that this transaction will have a material effect
     on the operations of the Partnership.

     In accordance with the Partnership's Agreement of Limited Partnership (the
     "Partnership Agreement"), net income and loss, adjusted cash from
     operations and disposition proceeds are allocated 97.5% to the limited
     partners and 2.5% to the General Partners.

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     INVESTMENT IN MORTGAGE LOANS

     The Partnership principally invested in "zero coupon" senior and junior
     mortgage loans on properties owned or acquired by limited partnerships
     originally sponsored by affiliates of the General Partners. These loans
     generally contain provisions whereby the Partnership may be entitled to
     additional interest represented by participation in the appreciation of the
     underlying property.

     The Partnership accounts for its investments in mortgage loans under the
     following methods:

          INVESTMENT METHOD

          Mortgage loans representing transactions in which the Partnership is
          considered to have substantially the same risks and potential rewards
          as the borrower are accounted for as investments in real estate rather
          than as loans. Although the transactions are structured as loans, due
          to the terms of the zero coupon mortgage, it is not readily
          determinable at inception that the borrower will continue to maintain
          a minimum investment in the property. Under the method of accounting,
          the Partnership will recognize as revenue the lesser of the amount of
          interest as contractually provided for in the mortgage loan, or its
          pro rata share of the actual cash flow from operations of the
          underlying property inclusive of depreciation and interest expense on
          any senior indebtedness.

          INTEREST METHOD

          Under this method of accounting, the Partnership recognizes revenue as
          interest income over the term of the mortgage loan so as to produce a
          constant periodic rate of return. Interest income will not be
          recognized as revenue during periods where there are concerns about
          the ultimate realization of the interest or loan principal.


                                       21
<PAGE>

                  RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                        DECEMBER 31, 2000, 1999 AND 1998

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     ALLOWANCE FOR LOAN LOSSES

     An allowance for loan losses is established based upon a periodic review of
     each of the mortgage loans in the Partnership's portfolio. In performing
     this review, management considers the estimated net realizable value of the
     mortgage loan or collateral as well as other factors, such as the current
     occupancy, the amount and status of any senior debt, the prospects for the
     property and the economic situation in the region where the property is
     located. Because this determination of net realizable value is based upon
     projections of future economic events which are inherently subjective, the
     amounts ultimately realized at disposition may differ materially from the
     carrying value at each year end.

     The allowance is inherently subjective and is based upon management's best
     estimate of current conditions and assumptions about expected future
     conditions. The Partnership may provide for additional losses in subsequent
     periods and such provisions could be material.

     CASH AND CASH EQUIVALENTS

     For the purpose of the statements of cash flows, the Partnership considers
     all short-term investments which have original maturities of three months
     or less to be cash equivalents. Substantially all of the Partnership's cash
     and cash equivalents are held at one financial institution.

     FAIR VALUE OF FINANCIAL INSTRUMENTS

     The fair value of financial instruments is determined by reference to
     market data and other valuation techniques as appropriate. The
     Partnership's financial instruments include cash and cash equivalents and
     an investment in a mortgage loan. Unless otherwise disclosed, the fair
     value of financial instruments approximates their recorded value.

     NET INCOME PER UNIT OF LIMITED PARTNERSHIP INTEREST

     Net income per unit of limited partnership interest is computed based upon
     the number of units outstanding (187,919) during the year.

     INCOME TAXES

     No provisions have been made for federal, state and local income taxes,
     since they are the personal responsibility of the partners.

     The income tax returns of the Partnership are subject to examination by
     federal, state and local taxing authorities. Such examinations could result
     in adjustments to Partnership income, which changes could effect the tax
     liability of the individual partners.


                                       22
<PAGE>

                  RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                        DECEMBER 31, 2000, 1999 AND 1998

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     ESTIMATES

     The preparation of financial statements in conformity with generally
     accepted accounting principals requires management to make estimates and
     assumptions that affect the reported amount of assets and liabilities and
     disclosure of contingent assets and liabilities at the date of the
     financial statements and the reported amounts of revenues and expenses
     during the reporting period. Actual results could differ from those
     estimates.

Recently Issued Accounting Standards

     The Financial Accounting Standards Board issued SFAS No. 137, "Accounting
     for Derivative Instruments and Hedging Activities - Deferral of the
     Effective Date of SFAS No. 133." The Statement deferred for one year the
     effective date of SFAS No. 133, "Accounting for Derivative Instruments and
     Hedging Activities". The Statement requires companies to recognize all
     derivatives on the balance sheet as assets or liabilities, measured at fair
     value. Gains or losses resulting from changes in the values of those
     derivatives would be accounted for depending on the use of the derivative
     and whether they qualify for hedge accounting. This Statement is effective
     for fiscal years beginning after June 15, 2000. The Partnership believes
     that the effect of SFAS 133 on its financial statements will be immaterial.

3.   CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES

     For the years ended December 31, 2000, 1999 and 1998, reimbursable expenses
     due to NorthStar Presidio from the Partnership amounted to $ 0, $12,781 and
     $1,000, respectively.

     As of December 31, 2000, affiliates of Presidio had acquired 31,893 units
     of limited partnership interest of the Partnership. These units represent
     16.972% of the issued and outstanding limited partnership units.

4.   INVESTMENTS IN MORTGAGE LOAN AND ALLOWANCE FOR LOAN LOSSES

     The Partnership invested in zero-coupon, nonrecourse senior and junior
     mortgage loans. Collection of the amounts due on the Partnership's mortgage
     loans is solely dependent upon the sale or refinancing of the underlying
     properties at amounts sufficient to satisfy the Partnership's mortgage
     notes after payment of the senior mortgage notes owned by unaffiliated
     third parties.

     The Partnership currently has one outstanding mortgage loan.

     The Partnership's mortgage note contains a provision which requires the
     borrower to provide current appraisals based upon certain conditions or in
     some cases upon request.

     While there are risks inherent in a zero-coupon nonrecourse senior or
     junior mortgage loan portfolio, the above described provisions were
     intended to provide some mitigation of these risks. However, in the event a
     borrower is required to make a payment under such loan provisions, there
     can be no assurance that the borrower will be able to make such payments.


                                       23
<PAGE>

                  RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                        DECEMBER 31, 2000, 1999 AND 1998

4.   INVESTMENTS IN MORTGAGE LOAN AND ALLOWANCE FOR LOAN LOSSES (CONTINUED)

     HARBORISTA LOAN

     A $10,000,000 second mortgage loan ("the Harborista Loan") to Harborista
     Associates, L.P. was secured by an office building, commonly known as the
     Harbor Plaza, located in Boston, Massachusetts (the "Harbor Plaza"). The
     Harborista Loan was funded on February 13, 1989 and bore interest at the
     rate of 13.307% per annum, compounded monthly and was originally due to
     mature on December 1, 1998, at which time a balloon payment of
     approximately $36,000,000 would have been due and payable. Harbor Plaza was
     also encumbered by a first mortgage loan in the original amount of
     $24,475,000 held by Northwestern Mutual Life Insurance Co.
     ("Northwestern"). The first mortgage was due to mature on December 1, 1995,
     but was extended until January 1, 1999.

     During 1993 management determined that interest on the Harborista Loan
     should cease to accrue and that an allowance for loan losses was necessary
     for the entire carrying value of the Harborista Loan which amounted to
     $10,618,380.

     On February 9, 1999, 470 Atlantic Avenue Management Corp. ("470 Atlantic"),
     which had acquired Northwestern's first mortgage loan, filed a motion for
     foreclosure on its mortgage.

     On March 30, 1999, the Partnership sold its interest in Harborista Loan to
     470 Atlantic for gross proceeds of $1,000,000, exclusive of legal and other
     costs related to the transaction of $200,000. Accordingly, the Partnership
     recorded $800,000 of recovery of loan losses with respect to the sale of
     this loan as of December 31, 1998.

     Following its acquisition of the Harborista Loan, 470 Atlantic foreclosed
     on its interests in the two mortgages and acquired Harbor Plaza. On March
     29, 1999, 470 Atlantic entered into an agreement with Charbird Enterprises
     LLC ("Charbird"), an affiliate of NorthStar and the General Partners, for
     the performance of services in connection with the marketing of Harbor
     Plaza. Charbird assigned to NorthStar its right to receive a substantial
     portion of amounts paid under the agreement and NorthStar agreed to
     indemnify Charbird for any liabilities under the agreement. Harbor Plaza
     was sold in December 1999 for approximately $50,500,000. Charbird received
     a fee of $14,050,884 under the agreement, $12,645,796 of which was paid to
     NorthStar (see Note 6).

     TWIN OAK LOAN

     On March 1, 1999, the Twin Oak Property was sold to an affiliate of
     NorthStar for a gross purchase price of approximately $4,150,000 (subject
     to customary adjustments at closing). The Twin Oak Borrower used the
     proceeds from the sale to repay the first mortgage to Southern Life
     Mortgage and on May 5, 1999, the Partnership received approximately
     $237,000 representing the carrying value of the Twin Oak loan. During the
     quarter ended December 31, 1999, the Partnership received an additional
     $99,156 representing residual proceeds from The Twin Oak sale and recorded
     such amount as loan loss recovery during the quarter ended December 31,
     1999. A $400,000 allowance for loan losses had been recorded during 1998 to
     reduce the carrying value of the loan to the estimated amount anticipated
     to be received by the Partnership.


                                       24
<PAGE>

                  RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                        DECEMBER 31, 2000, 1999 AND 1998

4.   INVESTMENTS IN MORTGAGE LOAN AND ALLOWANCE FOR LOAN LOSSES (CONTINUED)

     SIERRA LOAN

     A $6,500,000 first mortgage loan to High Cash Partners, L.P. ("High Cash")
     is secured by a shopping center located in Reno, Nevada. Interest on the
     loan accrues at the rate of 11.22% per annum with no payments due until
     maturity on February 28, 2001 (see below).

     During the first quarter of 1997, High Cash wrote the property down to what
     its management believed to be its estimated fair market value of
     $15,875,000. Management of the Partnership performed its own evaluation at
     that time and determined that this amount was a fair estimate of the
     property value. The outstanding balance of the loan at December 31, 1996
     was approximately $15,979,000 and it was unlikely that any additional
     interest accrued on the Sierra loan would ultimately be recovered from the
     value of the underlying property. Consequently, as of January 1, 1997 the
     Partnership ceased accruing interest on the Sierra loan.

     On June 13, 1997, the general partners of High Cash, who were formerly
     affiliated with the General Partners, sold their general partner interest
     to Pembroke HCP LLC and Pembroke AGP Corp., unaffiliated third parties.

     In December 2000, the Partnership and High Cash agreed on an extension to
     the loan as follows:

     1.   To extend the term of the loan until February 28, 2003.

     2.   The borrower placed in escrow a deed as well as documents necessary to
          convey the property, which documents will be released to the
          Partnership on the earlier (A) March 1, 2003, (B) at such time as a
          third-party purchaser is identified to acquire the Sierra property or
          (C) at any time after March 1, 2002 if the Partnership deems it
          necessary to protect its economic interest.

     3.   The borrower will pay to the Partnership, to be applied towards the
          Sierra loan, all cash flow generated from the property in excess of
          $100,000 per year.

     4.   The borrower will have an appraisal prepared on the Sierra property to
          determine if an excess payment as described above is due and, if such
          a payment is due, to make such payment.

     5.   The borrower has the right to prepay the loan after the initial
          maturity date (February 2001) by paying to the Partnership the sum of
          the then unpaid principal balance of the loan together with accrued
          interest and other charges due under the loan and 66% of the value of
          the Sierra property in excess of such amount.

     In addition, the Partnership now has significantly more input over the
     operation of the Sierra property including, the selection of the management
     company, leasing programs and capital improvements. In this regard, Kestrel
     Management Company, an affiliate of the Agent, began providing property
     management services at the Sierra property effective March 2001.


                                       25
<PAGE>

                  RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                        DECEMBER 31, 2000, 1999 AND 1998

4.   INVESTMENTS IN MORTGAGE LOAN AND ALLOWANCE FOR LOAN LOSSES (CONTINUED)

     A summary of mortgage activity is as follows:

<TABLE>
<CAPTION>
                                 INVESTMENT         INTEREST
                                   METHOD            METHOD             TOTAL
                                ------------      ------------      ------------
<S>                             <C>               <C>               <C>
Balance, December 31, 1997      $         --      $ 16,616,033      $ 16,616,033
  Interest recognized                     --                --                --
  Provision for loan losses               --          (400,000)         (400,000)
  Recovery of loan losses            800,000                --           800,000
                                ------------      ------------      ------------

Balance, December 31, 1998           800,000        16,216,033        17,016,033
  Interest recognized                     --                --                --
  Recovery of loan losses                 --            99,156            99,156
  Proceeds received                 (800,000)         (335,834)       (1,135,834)
                                ------------      ------------      ------------

Balance, December 31, 1999                --        15,979,355        15,979,355
  Interest recognized                     --                --                --
                                ------------      ------------      ------------

Balance, December 31, 2000      $         --      $ 15,979,355      $ 15,979,355
                                ============      ============      ============
</TABLE>

     Information with respect to the Partnership's mortgage loan is as follows:

<TABLE>
<CAPTION>
                                                                       Original      Mortgage     Mortgage     Mortgage
                       Interest      Compound               Loan       Maturity       Amount      Purchased    Placement
                         Rate %       Period       Type     Date         Date        Advanced     Interest       Fees
                      ----------- -------------- ------- ---------- ------------- ------------- ------------ ------------
DESCRIPTION
-----------
SHOPPING CENTER
---------------
Sierra Marketplace
<S>                     <C>          <C>            <C>    <C>         <C>        <C>           <C>          <C>
  Reno, Nevada          11.220       Monthly        1st    2/10/89     2/28/01    $   6,500,000 $         -- $    385,757
                                                                                  ============= ============ ============
</TABLE>


<TABLE>
<CAPTION>
                       Interest Recognized                                   Carrying Value              Contractual Balance
                    ----------------------                              ---------------------------    ----------------------------
                    December 31,  1999 and      Reserves/               December 31,    December 31,   December 31,    December 31,
                        2000        Prior      Write-offs    Proceeds       2000            1999          2000             1999
                    ------------  --------     ----------    --------   ------------    ------------   -----------     ------------
SHOPPING CENTER
---------------
<S>                  <C>         <C>           <C>           <C>       <C>             <C>            <C>              <C>
Sierra Marketplace
    Reno, Nevada     $      --   $ 9,093,598   $        --   $     --  $  15,979,355   $  15,979,355  $  24,506,244    $ 21,916,707
</TABLE>


                                       26
<PAGE>

                  RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                        DECEMBER 31, 2000, 1999 AND 1998

5.   RECONCILIATION OF NET INCOME (LOSS) AND NET ASSETS PER FINANCIAL STATEMENTS
     TO TAX BASIS

     The Partnership presently recognizes interest income on all of its
     investments in mortgage loans using the interest method for tax purposes.
     For financial statement purposes, mortgage loans accounted for under the
     investment method recognize income as described in Note 2.

     A reconciliation of net income per financial statements to the tax basis of
accounting is as follows:

<TABLE>
<CAPTION>
                                                       YEAR ENDED DECEMBER 31,
                                           -----------------------------------------------
                                               2000             1999              1998
                                           ------------     ------------      ------------
<S>                                        <C>              <C>               <C>
Net income per financial statements        $     75,541     $    264,554      $    481,315

Interest income recognized for tax
   purposes in excess of amounts
   recognized for financial statements        2,516,630        2,199,756         6,383,499
Tax basis write-offs                                 --      (38,885,323)               --
Recovery of loan losses, net                         --               --          (400,000)
                                           ------------     ------------      ------------
Net (loss) income per tax basis            $  2,592,171     $(36,421,013)     $  6,464,814
                                           ============     ============      ============
</TABLE>

The differences between the Partnership's net assets per financial statements
and tax basis of accounting are as follows:

                                             YEAR ENDED DECEMBER 31,
                                           ---------------------------
                                               2000            1999
                                           -----------     -----------

Net assets per financial statements        $20,264,310     $20,188,769
Interest income recognized for tax
   purposes in excess of amounts
   recognized for financial statements       8,525,002       6,008,372
Syndication costs                            2,230,944       2,230,944
                                           -----------     -----------

Net assets per tax basis                   $31,020,256     $28,428,085
                                           ===========     ===========



                                       27
<PAGE>

                  RESOURCES ACCRUED MORTGAGE INVESTORS 2, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                        DECEMBER 31, 2000, 1999 AND 1998

6.   LITIGATION

     DR. WARREN HELLER, ON BEHALF OF HIMSELF AND ALL OTHERS SIMILARLY SITUATED,
     V. RAM FUNDING INC., PRESIDIO AGP CORP., NORTHSTAR CAPITAL INVESTMENT CORP.
     AND CHARBIRD ENTERPRISES, LLC, DEFENDANTS, AND RESOURCES ACCRUED MORTGAGE
     INVESTORS 2, L.P., AS NOMINAL DEFENDANT, Court of Chancery, New Castle
     County, Delaware (Case No. 18059). On or about May 19, 2000, Dr. Warren
     Heller, a limited partner, commenced a punitive class action and derivative
     lawsuit in the Delaware Chancery Court seeking, among other things,
     monetary damages resulting from purported breaches of fiduciary duties and
     breaches of the Partnership's partnership agreement in connection with the
     March 1999 sale of the Harborista loan and the marketing of the property
     which secured the Harborista loan. In addition, the action alleges breaches
     of fiduciary duty in connection with the purported failure of the
     Partnership to distribute cash and the purported failure of the Partnership
     to enforce the provisions of the loan secured by the Reno, Nevada property.
     The defendants have preliminarily agreed to enter into a Memorandum of
     Understanding (the "MOU") settling this lawsuit. As currently contemplated,
     the MOU (i) provides for an $8,000,000 payment by the defendants to the
     Partnership and (ii) requires that the Partnership distribute to its
     partners the $8,000,000 payment, less fees and expenses awarded by the
     court to plaintiff's counsel (which amount is not expected to exceed 20% of
     the settlement amount), along with $1,000,000 of the Partnership's cash
     reserves. The MOU is subject to many conditions including execution of a
     definitive settlement agreement, completion of discovery by plaintiffs and
     court approval of the settlement following notice to limited partners.
     Discovery is currently ongoing and it is anticipated that discovery will be
     concluded in the second quarter of 2001. Accordingly, there can be no
     assurance that the settlement will be consummated on the terms currently
     contemplated or that the settlement will be consummated at all.


                                       28
<PAGE>

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
        FINANCIAL DISCLOSURE.

     Effective July 28,2000, the Registrant dismissed its prior Independent
Auditors, Hays & Company (the "Prior Auditors"). Hays & Company's auditors'
report on the balance sheets of the Registrant as of and for years ended
December 31, 1999 and 1998, and the related statements of operations, partner's
equity and cash flows for each of the three years in the period ended December
31, 1999, did not contain an adverse opinion or a disclaimer of opinion, and
were not qualified or modified as to uncertainty, audit scope, or accounting
principles. The decision to change Independent Auditors was approved by the
Registrant's managing general partner's directors. During calendar year ended
1998 and 1999 and through July 28, 2000, there were no disagreements between the
Registrant and the Prior Auditors on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope of procedure which
disagreements if not resolved to the satisfaction of the Prior Auditors.

     Effective October 25, 2000, the Registrant engaged Imowitz Koenig & Co.,
LLP. as its Independent Auditors. The Registrant did not consult Imowitz Koenig
& Co., LLP. regarding any of the matters or events set forth in Item 304(a)(2)
of Regulation S-K prior to October 25, 2000.


                                       29
<PAGE>

PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT.

Registrant has no officers or directors. The Managing General Partner manages
and controls substantially all of Registrant's affairs and has general
responsibility and ultimate authority in all matters affecting its business. The
officers and directors of the Associate General Partner, in their respective
capacities as such, do not devote any material amount of their business time and
attention to Registrant's affairs. The names and positions held by the officers
and directors of the Managing General Partner are described below. The officers
and directors of the Associate General Partner are the same as the officers and
directors of the Managing General Partner.

                          POSITION HELD WITH THE       HAS SERVED AS A DIRECTOR
NAME                     MANAGING GENERAL PARTNER          OR OFFICER SINCE
----                     ------------------------      ------------------------

Michael L. Ashner      President and Director                   10-99

David G. King, Jr.     Vice President                           11-97

Peter Braverman        Executive Vice President                 10-99

Lara K. Sweeney        Vice President and Secretary             10-99

Carolyn Tiffany        Vice President and Treasurer             10-99

     Michael L. Ashner, age 48, has been the Chief Executive Officer of Winthrop
Financial Associates, A Limited Partnership ("WFA") since January 15, 1996. From
June 1994 until January 1996, Mr. Ashner was a Director, President and
Co-chairman of National Property Investors, Inc., a real estate investment
company ("NPI"). Mr. Ashner was also a Director and executive officer of NPI
Property Management Corporation ("NPI Management") from April 1984 until January
1996. In addition, since 1981 Mr. Ashner has been President of Exeter Capital
Corporation, a firm which has organized and administered real estate limited
partnerships. Mr. Ashner also currently serves as a Director of Interstate
Hotels Corporation, Nexthealth Corp., Great Bay Hotel and Casino Inc., Burnham
Pacific Properties, Inc. and NBTY, Inc.

     David G. King, Jr., 38, has been a Vice President and Assistant Treasurer
of NorthStar Capital Investment Corp. since November 1997. He is also a Vice
President of the General Partner. For more than the previous five years he was a
Senior Vice President of Finance at Olympia & York Companies (USA).

     Peter Braverman, age 49, has been a Vice President of WFA since January
1996. From June 1995 until January 1996, Mr. Braverman was a Vice President of
NPI and NPI Management. From June 1991 until March 1994, Mr. Braverman was
President of the Braverman Group, a firm specializing in management consulting
for the real estate and construction industries. From 1988 to 1991, Mr.
Braverman was a Vice President and Assistant Secretary of Fischbach Corporation,
a publicly traded, international real estate and construction firm.

     Lara K. Sweeney, age 28, has been a Senior Vice President of WFA since
January 1996. Prior to joining WFA, Ms. Sweeney was an officer of NPI and NPI
Management in the asset management and investor relations departments.


                                       30
<PAGE>

     Carolyn Tiffany, age 34, has been employed with WFA since January 1993.
From 1993 to September 1995, Ms. Tiffany was a Senior Analyst and Associate in
WFA's accounting and asset management departments. From October 1995 to present
Ms. Tiffany was a Vice President in the asset management and investor relations
departments of WFA until December 1997, at which time she became the Chief
Operating Officer of WFA.

Each director and officer of the General Partner will hold office until the next
annual meeting of stockholders of the General Partner and until his successor is
elected and qualified.

One or more of the above persons are also directors or officers of a general
partner (or general partner of a general partner) of a number of limited
partnerships which either have a class of securities registered pursuant to
Section 12(g) of the Securities and Exchange Act of 1934, or are subject to the
reporting requirements of Section 15(d) of such Act.

There are no family relationships among the officers and directors of the
General Partners.

ITEM 11. EXECUTIVE COMPENSATION.

Registrant is not required to and did not pay remuneration to the officers and
directors of the Managing General Partner or the general partners of the former
Associate General Partner. Certain officers and directors of the Managing
General Partner receive compensation from affiliates of the Managing General
Partner and/or its affiliates (but not from Registrant) for services performed
for various affiliated entities, which may include services performed for
Registrant; however, the Managing General Partner believes that any compensation
attributable to services performed for Registrant is not material. See Item 13,
"Certain Relationships and Related Transactions."

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

     (a) SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS.

     Except as set forth below, no person or group is known by the Registrant to
be the beneficial owner of more than 5% of the outstanding Units at March 1,
2001:

                                               NUMBER OF
         NAME OF BENEFICIAL OWNER             UNITS OWNED         % OF CLASS
         ------------------------             -----------         ----------

         Presidio Partnership II Corp.(1)       17,462               9.29%
         Bighorn Associates LLC(2)              14,122               7.515%

(1)  The principal business address of Presidio Partnership II Corp., an
     affiliate of the General Partners, is 527 Madison Avenue, New York, New
     York 10022.

(2)  The principal business address of Bighorn Associates LLC, an affiliate of
     the General Partners, is 5 Cambridge Center, 9th Floor, Cambridge,
     Massachusetts 02142.

On January 17, 2001, Bighorn commenced a tender offer to acquire up to 57,000
Units for a price of $90 per unit. Subsequent to Bighorn's offer, Western
commenced an offer to acquire up to 40,000 Units for a price of $97 per unit.
After a series of amendments, both the Bighorn purchase price and the Western
purchase price was $127 per Unit.

On March 16, 2001, Bighorn's offer expired and on March 20, 2001, Western's
offer expired. Based on its filings with the Securities and Exchange Commission,
Bighorn acquired 22,636 Units in its offer representing approximately 12.05% of
the total outstanding Units. As of March 28, 2001, Western had not


                                       31
<PAGE>

yet made its final filing with the Securities and Exchange Commission indicating
the number of Units they acquired.

     (b) SECURITY OWNERSHIP OF MANAGEMENT.

     At March 1, 2001, Presidio, the Managing General Partner and their
affiliates, officers and directors owned as a group own 31,893 Units
representing approximately 16.97% of the total number of Units outstanding. As
indicated above, Bighorn acquired an additional 22,636 Units (12.05%) in its
tender offer in March 2001.

     (c) CHANGES IN CONTROL.

     There exists no arrangement known to the Registrant the operation of which
may at a subsequent date result in a change in control of the Registrant.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

The General Partners, during Registrant's year ended December 31, 2000, earned
or received compensation or payments for services from or with respect to
Registrant as follows:

                        CAPACITY IN WHICH SERVED OR
NAME OF RECIPIENT            SERVICES PERFORMED               COMPENSATION
-----------------       ---------------------------           ------------
RAM Funding, Inc.         Managing General Partner                 (1)
Presidio AGP Corp.        Associate General Partner                (1)

(1)  The General Partners were not entitled to any payment for services from or
     with respect to Registrant, Integrated or Presidio. However, the General
     Partners, pursuant to the Partnership Agreement, are entitled to receive
     2.5% of Registrant's income, loss, capital and distributions (2.45% to the
     Managing General Partner and .05% to the Associate General Partner)
     including without limitation Registrant's cash flow from operations and
     disposition proceeds. No distributions are expected to be made from
     operations inasmuch as all interest and principal due on the Mortgage Loans
     is deferred until maturity, unless there are prepayments of Mortgage Loans.
     For the year ended December 31, 2000, the General Partners were allocated
     an aggregate of $64,660 of taxable income ($63,367 to the Managing General
     Partner and $1,293 to the Associate General Partner).

Under the terms of a management agreement with NorthStar Presidio Management
Company LLC ("NorthStar Presidio"). NorthStar Presidio was retained to provide
the day-to-day management of, among other entities, the Registrant. During the
years ended December 31, 2000 and 1999, the Registrant paid NorthStar Presidio
$0 and $12,781, respectively, for management and administrative services
rendered. Effective October 21, 1999, Presidio retained AP-PCC III, L.P. to
provide the day to day management of the Registrant.


                                       32
<PAGE>

PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENTS SCHEDULES AND REPORTS ON FORM 8-K

(A)(1) FINANCIAL STATEMENTS

     See Item 8, "Financial Statements and Supplementary Data."


(A)(2) FINANCIAL STATEMENT SCHEDULES

     None.

     All schedules have been omitted because they are inapplicable, not
     required, or the information is included in the Financial Statements or
     Notes thereto.

(A)(3) EXHIBITS

3.   Certificate of Limited Partnership filed August 14, 1986 (incorporated by
     reference to Exhibit 3B as filed as part of Pre-Effective Amendment No. 1
     filed on May 14, 1987 ("Pre-Effective Amendment") to the Registration
     Statement) and Amendments to Certificate of Limited Partnership filed on
     March 12, 1987, May 7, 1987 (incorporated by reference as filed as part of
     Pre-Effective Amendment to the Registration Statement) and February 5, 1988
     (incorporated by reference to Post-Effective Amendment No. 2 to the
     Registration Statement).

4.

(A)  Amended and Restated Agreement of Limited Partnership (incorporated by
     reference to Exhibit 3A as filed as part of Post-Effective Amendment No. 2
     filed on March 23, 1988 ("Post-Effective Amendment No. 2") to the
     Registration Statement).

(B)  Amendment No. 1 to Amended and Restated Partnership Agreement dated as of
     June 1, 1988, incorporated by reference to Exhibit 4(B) of the 1988 10-K.

(C)  Amendment No. 2 to Amended and Restated Partnership Agreement (incorporated
     by reference to Supplement No. 1 dated August 12, 1988 to the Prospectus as
     filed pursuant to Rules 424(b)(3) and 424(c).

10.

(A)  Agreement with Associate General Partner dated as of May 17, 1988 among
     Integrated, RAM Funding, Inc. and Z Square G Partners II, incorporated by
     reference to Exhibit 10(B) of the 1988 10-K.

(B)  Mortgage Services Agreement dated as of April 12, 1988 between Registrant
     and RAM Funding, Inc., incorporated by reference to Exhibit 10(C) of the
     1988 10-K.

(C)  Deed of Trust, Assignment of Rents, Fixture Filing and Security Agreement
     among High Cash Partners, L.P., Truster; First Commercial Title, Inc.,
     Trustee and Resources Accrued Mortgage Investors 2 L.P., Beneficiary, dated
     February 10, 1989 (incorporated by reference to Exhibit 10(a) of
     Registrant's Current Report on Form 8-K dated February 13, 1989
     (hereinafter referred to as the February 13, 1989 Form 8-K)).


                                       33
<PAGE>

(D)  Registered Note among High Cash Partners L.P. and Resources Accrued
     Mortgage Investors 2 L.P., dated February 10, 1989 (incorporated by
     reference to Exhibit 10(b) of the February 13, 1989 Form 8-K).

(E)  Assignment of Leases and Rents among High Cash Partners L.P. and Resources
     Accrued Mortgage Investors 2 L.P., dated February 10, 1989 (incorporated by
     reference to Exhibit 10(c) of the February 13, 1989 Form 8-K).

(F)  Modification Agreement, dated as of December 21, 2000, between High Cash
     Partners, L.P. and Resources Accrued Mortgage Investors 2 L.P.
     (incorporated by reference to Exhibit 10 of the February 9, 2001 Form 8-K)

16.  Letter dated July 31, 2000 from Hays & Company (incorporated by reference
     to Exhibit 16 of the July 28, 2000 Form 8-K)

(B)  REPORTS ON FORM 8-K

     A Current Report on Form 8-K was filed on October 25, 2000 with respect to
the Registrant's change of accountants (Item 4).


                                       34
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized, on the 29th day of March 2001.

RESOURCES ACCRUED MORTGAGE
INVESTORS 2 L.P.

By:     RAM FUNDING, INC.,
        Managing General Partner

                                                              DATE

By:     /S/ MICHAEL L. ASHNER                             March 29, 2001
        --------------------------------
        Michael L. Ashner
        President

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of Registrant and in
their capacities as directors and/or officers (with respect to the Managing
General Partner) and on the dates indicated.

       SIGNATURE                      TITLE                        DATE
       ---------                      -----                        ----

/S/ MICHAEL L. ASHNER        Director and President           March 29, 2001
--------------------------
Michael L. Ashner

/S/ CAROLYN TIFFANY          Vice President and Treasurer     March 29, 2001
--------------------------
Carolyn Tiffany


                                       35
<PAGE>

                                  EXHIBIT INDEX

                                                                          PAGE
EXHIBIT                                                                  NUMBER
-------                                                                  ------

3.     Certificate of Limited Partnership filed August 14, 1986
       (incorporated by reference to Exhibit 3B as filed as part of
       Pre-Effective Amendment No. 1 filed on May 14, 1987
       ("Pre-Effective Amendment") to the Registration Statement) and
       Amendments to Certificate of Limited Partnership filed on March
       12, 1987, May 7, 1987 (incorporated by reference as filed as part
       of Pre-Effective Amendment to the Registration Statement) and
       February 5, 1988 (incorporated by reference to Post-Effective
       Amendment No. 2 to the Registration Statement).

4.

(A)    Amended and Restated Agreement of Limited Partnership
       (incorporated by reference to Exhibit 3A as filed as part of
       Post-Effective Amendment No. 2 filed on March 23, 1988
       ("Post-Effective Amendment No. 2") to the Registration
       Statement).

(B)    Amendment No. 1 to Amended and Restated Partnership
       Agreement dated as of June 1, 1988, incorporated by
       reference to Exhibit 4(B) of the 1988 10-K.

(C)    Amendment No. 2 to Amended and Restated Partnership
       Agreement (incorporated by reference to Supplement No. 1
       dated August 12, 1988 to the Prospectus as filed pursuant to
       Rules 424(b)(3) and 424(c).

10.

(A)    Agreement with Associate General Partner dated as of May 17,
       1988 among Integrated, RAM Funding, Inc. and Z Square G
       Partners II, incorporated by reference to Exhibit 10(B) of
       the 1988 10-K.

(B)    Mortgage Services Agreement dated as of April 12, 1988
       between Registrant and RAM Funding, Inc., incorporated by
       reference to Exhibit 10(C) of the 1988 10-K.

(C)    Deed of Trust, Assignment of Rents, Fixture Filing and
       Security Agreement among High Cash Partners, L.P., Truster;
       First Commercial Title, Inc., Trustee and Resources Accrued
       Mortgage Investors 2 L.P., Beneficiary, dated February 10,
       1989 (incorporated by reference to Exhibit 10(a) of
       Registrant's Current Report on Form 8-K dated February 13,
       1989 (hereinafter referred to as the February 13, 1989 Form
       8-K)).

(D)    Registered Note among High Cash Partners L.P. and Resources
       Accrued Mortgage Investors 2 L.P., dated February 10, 1989
       (incorporated by reference to Exhibit 10(b) of the February
       13, 1989 Form 8-K).


                                       36
<PAGE>

(E)    Assignment of Leases and Rents among High Cash Partners L.P.
       and Resources Accrued Mortgage Investors 2 L.P., dated
       February 10, 1989 (incorporated by reference to Exhibit
       10(c) of the February 13, 1989 Form 8-K).

(F)    Modification Agreement, dated as of December 21, 2000,
       between High Cash Partners, L.P. and Resources Accrued
       Mortgage Investors 2 L.P. (incorporated by reference to
       Exhibit 10 of the February 9, 2001 Form 8-K)

16.    Letter dated July 31, 2000 from Hays & Company (incorporated
       by reference to Exhibit 16 of the July 28, 2000 Form 8-K)


                                       37