8. Loans and Notes Receivable

Loans and notes receivable (amounts expressed in thousands) as of June 30,1979 consisted of the follow-
ing:

	Debt	Capital	Funds Other	Higher Education and
	Service	Projects	Enterprise	University Hospital
Notes receivable for advances of general obligation bond proceeds:
Political subdivisions:
Public school construction ................................	$ 76,204
Other.................................................	9,746	$1,605
Hospitals and nursing homes ...............................	44,272
Construction mortgage loans receivable ........................			$ 69,629
Permanent mortgage loans receivable ..........................			86,186
National direct student loans .................................				$22,639
Health profession loans......................................				6,170
Other ....................................................	271	4,093	419	391
	130,493	5,698	156,234	29,200
Less allowance for possible loan losses .........................	106			7,138
Loans and notes receivable, net ...............................	.... $130,387	$5,698	$156,234	$22,062

Notes receivable for advances of general obligation bond proceeds bear interest at rates ranging from 2.0%
to 6.5% and mature over periods ranging from 4 to 32 years. Notes receivable maturing after 1994 in the
amount of $54,004,000 are deemed to be not available for debt service because all related general obligation
bonds are scheduled to be retired by that date. Accordingly, the amount has been reflected as a reservation of
debt service fund balance.

Construction mortgage loans receivable are subject to commitments from other lenders to purchase the
loans upon completion of construction. Proceeds from payments of principal and interest on the mortgage loans
are pledged to meet the debt service requirements of the mortgage revenue bonds (See Note 12).

National direct student loans and health profession loans are made pursuant to student loan programs
funded through the U.S. Government.