Church Loans 10-K

Our allowance for credit losses actually decreased from $1,786,477 as of March 31, 2008 to $1,626,760 as of March 31, 2009. The allowance for credit losses is based on an amount that is adequate in the opinion of the Audit Committee, based upon input from management, to absorb losses inherent in the existing loan portfolio. This evaluation includes a review of a quarterly grading methodology performed by management on impaired loans. Impaired loans include non-performing loans, which have been placed on non-accrual

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status. At March 31, 2009 and 2008 impaired loans were approximately $12,709,774 and $11,639,000, respectively. Impaired loans included non-performing loans and other loans deemed by management to be impaired that are not classified as non-performing. Our average investment in non-performing loans was $6,339,000 and $9,281,000 for the years ended March 31, 2009 and March 31, 2008 respectively. The allowance for credit losses has decreased reflecting changes in the portfolio of existing loans. In other words, based on the quarterly grading methodology performed by management and reviewed by the Audit Committee, it is our opinion that although there is an increase in impaired loans, the allowance for credit losses decreased as of March 31, 2009 due to the lower risk of loss in the portfolio.

In calculating its reserve for credit losses, Church Loans does take into account probable credit losses inherent in the remaining portion of its loan portfolio. In calculating the allowance, 1% of the outstanding balance of its loan portfolio of permanent and interim mortgage loans that have not been identified as impaired is reserved for. In addition, 2% of the outstanding balance of half of its church bonds is reserved for and an additional 50% of the remaining half of its church bonds is reserved for.

Other than the addition of the loan to Ministerio Intl., Virginia Gardens, Florida in the amount of $2,500,000 to the loans in default, the amount of loans in default has actually decreased from March 31, 2008 to March 31, 2009. Therefore, Church Loans, with the exception of this one loan, has not, at this time, experienced a significant impact on the performance in its loan portfolio during the current economic environment. However, Church Loans will continue to closely monitor its loans in default and will, of course, increase the reserve as necessary. Management and the Board of Trust Managers review the loans in default each month. The Audit Committee reviews and adjusts, as necessary, the allowance for credit losses each quarter.

The following table discloses the activity, on a quarterly basis, relating to the allowance for credit losses since March 31, 2008:

Table 9 – Activities in the Allowance for Credit Losses



		March 31, 2008 balance				$1,786,477

		Increases during the quarter				-0-

		Charge offs during the quarter				-0-

		June 30, 2008 balance				1,786,477

		Increases during the quarter				95,000

		Charge offs during the quarter				(329,717)

		September 30, 2008 balance				1,551,760

		Increases during the quarter				-0-

		Charge offs during the quarter				-0-

		December 31, 2008 balance				1,551,760

		Increases during the quarter				75,000

		Charge offs during the quarter				-0-

		March 31, 2009 balance				$1,626,760

As of March 31, 2009, Church Loans also held church bonds with a carrying value of $58,933 which were in default.

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The weighted average interest rate on our loans and church bonds decreased from 8.39% as of March 31, 2008 to 7.54% as of March 31, 2009. This decrease in the weighted average interest rate on our loans contributed to the decrease in our interest income during fiscal 2009 as compared to fiscal 2008.

Table 10 – Weighted Average Interest Rates on Our Loan Portfolio For Each Month in the Years Ended March 31, 2009 and March 31, 2008


Month	Fiscal 2009	Fiscal 2008	Difference

April	8.38	8.31	.07
May	8.37	8.37	.00
June	8.40	8.45	(.05)
July	8.40	8.49	(.09)
August	8.39	8.57	(.18)
September	8.17	8.57	(.40)
October	7.96	8.51	(.55)
November	7.98	8.54	(.56)
December	7.72	8.51	(.79)
January	7.69	8.36	(.67)
February	7.66	8.35	(.69)
March	7.54	8.39	(.85)

Commitment fees earned during the year ended March 31, 2009 were $515,459 as compared to $897,255 for the year ended March 31, 2008, a decrease of $381,796 or 43%.

Net income for the year ended March 31, 2009 was $3,493,408 ($.34 per share), an increase of $225,964 (7%) as compared to the year ended March 31, 2008. This increase was primarily attributable to the increase in net interest income and to a decrease in general and administrative expenses.

Net interest income increased from $4,554,883 for the year ended March 31, 2008 to $4,766,972 for the year ended March 31, 2009, an increase of $212,089 (5%). This increase in our net interest income for the year ended March 31, 2009 as compared to the year ended March 31, 2008 was primarily the result of a decrease in our interest expense.

Our total liabilities increased from $37,673,019 as of March 31, 2008 to $47,214,845 as of March 31, 2009. However, for each of the first 9 months of the year ended March 31, 2009, our debt was less than our debt for each of the first 9 months during the year ended March 31, 2008. Furthermore, the weighted average interest rate on our debt decreased from 4.73% as of March 31, 2008 to 3.74% as of March 31, 2009. Our interest expense decreased from $2,749,919 for the year ended March 31, 2008 to $1,332,326 for the year ended March 31, 2009, a decrease of $1,417,593 or 52%.

The weighted average interest on our debt was lower for each month during the year ended March 31, 2009 as compared to each month for the year ended March 31, 2008. Likewise, as mentioned, for the first 9 months of the year ended March 31, 2009 our total debt was lower than for the same months in the year ended March 31, 2008. We greatly benefited from the lower interest rates during the fiscal year ended March 31, 2009 and the reduction in our debt during the first 9 months of fiscal 2009. These lower rates and our lower debt more than offset the higher debt during the three-month period ended March 31, 2009.

The following table sets forth the weighted average interest rates on our debt for each month during the year ended March 31, 2009 as compared to same period ending March 31, 2008:

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Table 11 - Weighted Average Interest Rates on All Debt For Each Month in the Year Ended March 31, 2009 and March 31, 2008


Month	Fiscal 2009	Fiscal 2008	Difference

April	4.09	6.96	(2.87)
May	3.83	6.96	(3.13)
June	3.83	6.96	(3.13)
July	3.84	6.96	(3.12)
August	3.84	6.96	(3.12)
September	3.84	7.13	(3.26)
October	3.83	6.60	(2.77)
November	2.84	6.27	(3.43)
December	2.86	6.35	(3.49)
January	2.93	6.06	(3.13)
February	3.52	4.75	(1.23)
March	3.74	4.73	(.99)

Although market interest rates in the U.S. were flat during the three-month period ended March 31, 2009, the rates we pay on our debt increased due to two factors. First of all, our new loan agreement with Amarillo National Bank effective January 31, 2009 provided for a higher index, an interest rate floor of 4%, and a non-use fee. Secondly, effective February 1, 2009, we amended our Master Note Agreements to provide an interest rate floor of 3%.

The following table illustrates the average month end liabilities for the year ended March 31, 2009 as compared to the same period ended March 31, 2008:

Table 12 - Month End Total Liabilities for Each Month in the Fiscal Years Ended March 31, 2009 and March 31, 2008


Month	Fiscal 2009	Fiscal 2008	Difference

April	$37,441,086	$45,880,132	$(8,439,046)
May	37,192,614	43,493,942	(6,301,328)
June	36,511,926	46,224,751	(9,712,825)
July	36,630,689	45,594,147	(8,963,458)
August	36,549,535	46,869,209	(10,319,674)
September	35,966,011	46,219,185	(10,253,174)
October	32,689,582	43,530,628	(10,841,046)
November	33,074,297	41,119,221	(8,044,924)
December	36,500,715	40,642,638	(4,141,423)
January	38,521,094	35,074,835	3,446,259
February	41,572,090	37,312,057	4,260,033
March	47,214,845	37,673,019	9,541,826

Monthly Average:	$37,488,707	$42,469,480	$(4,980,773)

The following table provides a schedule of maturity dates and the principal amounts maturing for our debt:

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Table 13 - Maturity Dates of Month End Liabilities for Each Month in the Fiscal Year Ended March 31, 2009


Month	Total Liabilities	Maturing 1-31-12 (1)	Demand/Current

April	$37,441,086	$11,653,000	$25,788,086
May	37,192,614	12,103,000	25,089,614
June	36,511,926	12,253,000	24,258,926
July	36,630,689	12,603,000	24,027,689
August	36,549,535	13,103,000	23,446,535
September	35,966,011	12,978,000	22,988,011
October	32,689,582	10,858,000	21,831,582
November	33,074,297	11,890,000	21,184,297
December	36,500,715	16,015,000	20,485,715
January	38,521,094	17,890,000	20,631,094
February	41,572,090	21,340,000	20,232,090
March	47,214,845	25,365,000	21,849,845

(1) Technically, the amounts set forth in this column for the months of April, May, June, July, August, September, October, November and December were due on December 31, 2008, but were extended pursuant to the January 31, 2009 loan agreement with Amarillo National Bank to be due on or before January 31, 2012.

General and administrative expenses decreased from $1,601,339 for the year ended March 31, 2008 to $1,063,131 for the year ended March 31, 2009, a decrease of $538,208 or 34%. This decrease in general and administrative expenses is primarily attributable to the decrease in insurance, property taxes, attorney’s fees and other expenses relating to property held as a result of the foreclosure of defaulted loans.

Other income decreased from $554,958 for the year ended March 31, 2008 to $132,977 for the year ended March 31, 2009, a decrease of $421,981. Contributing to the large amount of other income in fiscal 2008 was the recognition of gain of $508,555 from the sale of property located in Bronx, NY that was obtained through foreclosure of a defaulted loan.

As of March 31, 2009, there were 10,217,094 shares of certificates of beneficial interest outstanding. Net income per share increased from $.32 per share for the year ended March 31, 2008 as compared to $.34 per share for the year ended March 31, 2009. This increase was attributable to the increase in our net income discussed above.

Liquidity and Capital Resources

Liquidity is a measurement of our ability to meet potential cash requirements, including the repayment of borrowings by us, fund loan commitments, maintain investments and meet our general business expenses and needs. Additionally, to maintain our status as a REIT under the Internal Revenue Code, we must distribute annually at least 90% of our REIT taxable income.

We are engaged primarily in the business of making permanent and interim loans to churches and other non-profit organizations, and to other borrowers, including businesses engaged in the building and operation of assisted living centers. At March 31, 2009 we had six loans to three different borrowers which are secured by assisted living centers and commercial properties which totaled approximately $13,673,168. Our assets primarily consist of our loan portfolio, real estate acquired through foreclosure and our office building and facilities.

Our operating expenses are comprised of the maintenance of our office building, the payment of the salaries of our management and support staff, office expenses, fees paid to the Board of Trust Managers, and the payment for legal and accounting services. Substantially all of our assets are invested in the permanent and interim loans. Our only potential liquidity problems relate to the timely and proper repayment of the leveraged funds we have borrowed to make loans in excess of our capital and the ability to fund loan commitments which totaled approximately $16,251,000 at March 31, 2009.

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Our primary sources of funds for liquidity consist of cash reserves, net cash provided by operations, payments received from the loans comprising our loan portfolio, and funds available through debt financing, including our line of credit agreement with the Amarillo National Bank.

Our level of liquidity based upon cash and cash equivalents increased by $5,707 during the year ended March 31, 2009. During this same period, we invested $24,514,696 in mortgage and interim construction loans using net cash provided by operating activities in the amount of $3,217,545, the excess in our borrowings on our bank line of credit and Master Note agreements over the principal payments made in the amount of $9,437,745, principal payments received on our loan portfolio in the amount of $15,590,285, payments received on other notes receivables of $1,000. The total liquidity available to invest in mortgage and interim construction loans was reduced by the net expenses resulting from other real estate owned that was sold of $150,190 and $3,575,982 paid in cash dividends during the year ended March 31, 2009.

Our primary debt obligations consist of our bank line of credit owing to Amarillo National Bank and Master Note Agreements with various persons. Pursuant to our January 31, 2009 loan agreement with the bank, we have a $49,000,000 line of credit for a term of three years, maturing January 31, 2012.

As of March 31, 2009, our total liabilities outstanding were $47,214,845. The amount owing on the line of credit as of March 31, 2009 was $25,365,000. It is anticipated that the line of credit will be renewed at the expiration of such three-year term. In the event that the bank elects not to renew the line of credit, we may, under the terms of the loan agreement, retire the line of credit over a period of time, not to exceed five years, equal to the weighted average remaining term of a pool of our real estate lien notes which would be pledged to secure the remaining balance of the bank line of credit.

As of March 31, 2009, pursuant to the credit agreement with Amarillo National Bank dated January 31, 2012, Church Loans has one note owing to Amarillo National Bank. The interest rate on this credit facility adjusts in accordance with the lesser of the 30-day, 90-day or 180-day London Interbank Offered Rates (“LIBOR”) plus 2.50% or the J.P. Morgan Chase & Co. prime rate as selected on the applicable adjustment dates by Church Loans and with an interest rate floor of 4%. As of March 31, 2009, the balance owing on this note was $25,365,000. The note owing to Amarillo National Bank made pursuant to a new Loan Agreement was entered into with the bank effective January 31, 2009 (“the 2009 Loan Agreement”) for a term of three years ending January 31, 2012. The rate of interest owing on the obligation owing to the bank as of March 31, 2009 was 4.0%, not including the non-use fee.

The amounts owing to Amarillo National Bank are secured by the portfolio of loans held by Church Loans. Church Loans may borrow up to $49,000,000 pursuant to the 2009 loan agreement subject to a borrowing base calculation limit equal to 85% of the principal balance outstanding of the performing mortgage loans and church bonds held by Church Loans and 50% of the principal balance outstanding of the performing interim loans held by Church Loans. Pursuant to that borrowing base calculation, Church Loans, as of March 31, 2009, could borrow up to the entire $49,000,000 line of credit.

Pursuant to the loan agreements with Amarillo National Bank, Church Loans must also maintain stockholder’s equity of not less than $18,000,000.

At March 31, 2009, loans to us under Master Note Agreements, which are in effect demand notes, totaled $21,513,136. As of March 31, 2009, Church Loans had 88 Master Note Agreements with 41 different parties. The rate of interest on these Master Notes is at the Wall Street Journal prime rate of interest less 1.25% with an interest rate floor of 3% effective as of February 1, 2009. As of March 31, 2009, the rate of interest on these Master Notes was 3.00%. All of these Master Notes are due on demand except that without the consent of Church Loans a noteholder may not demand payment of more than $250,000 during any 30 day period. These Master Notes are unsecured.

The loan agreement with Amarillo National Bank does provide that it is an event of default under such agreement if Church Loans defaults in the payment of any other indebtedness. Therefore, a default by Church Loans in the payment or performance of a Master Note would be a technical event of default in Church Loans’ agreement with the bank.

In the past, we have utilized our bank line of credit and the principal paid to us upon our outstanding loan portfolio in order to meet our maturing obligations.

Although our cash and cash equivalents as of March 31, 2009 were only $115,694, the balance which could be borrowed by us upon our bank line of credit as of March 31, 2009 was $23,635,000. The principal

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payments scheduled to be received on our loan portfolio through the fiscal year ending March 31, 2012 are $28,756,075. Assuming all of these scheduled principal payments are received, these payments, together with the balance available to us on our bank line of credit, would provide us with sufficient funds to meet our maturing obligations and fund loan commitments without the necessity of borrowing funds from other sources. Based upon our success in obtaining borrowings in the past, we are confident that, should it be necessary, we will be able to obtain additional bank financing in the future in sufficient amounts for us to timely meet all of our obligations.

Should all the scheduled principal payments upon loans not be received, and should we be unable to borrow against our line of credit, and should borrowings from other sources not be available, it would be necessary to sell a portion of our mortgage loan portfolio in order to meet all of our financial obligations. At March 31, 2009, the principal balance of our loan and church bond portfolio was $78,945,652, net of unamortized purchase discounts and deferred commitment fees. The weighted average interest rate on loans and church bonds was 7.54% per annum. In view of the normal marketability of conventional loans, we might be required to discount a majority of these loans in order for them to be attractive for purchase. The principal amount of these loans if discounted to yield a weighted average interest rate of 8%, 10% and 12% would be $74,406,275, $59,525,020, and $49,604,183, respective ly. There is no assurance that we would be able to sell all, or a portion of, our portfolio of loans, in which event, it would be necessary to secure a loan, or loans, from a lender in order to meet our financial obligations. There is no assurance that we would be able to secure a loan in such instance. We have sold only one of our loans in our mortgage loan portfolio and, therefore, have limited experience in this area. Furthermore, if required to discount our loans in excess of 12.61%, then we would not realize sufficient funds from the sale of the loans to retire all of our debt.

Principal payments scheduled to be received upon our permanent loan portfolio during the year ending March 31, 2010, if not used to fund new loan commitments, would be used to reduce our outstanding indebtedness. Should we use the payments of principal which shall be received upon our loan portfolio to reduce our outstanding indebtedness, our interest expense will decrease. In such instance, whether the decrease in the interest income will exceed, or be less than, the decrease in the interest expense will largely be dependent upon the prime rate of interest prevailing at such time due to the fact that the interest to be earned upon our mortgage loan portfolio is generally based upon a fixed rate of interest or a variable rate of interest that periodically reprices, while the interest to be paid upon our outstanding debts is directly, or indirectly, tied to the prime rate of interest charged by major banks.

Pursuant to the loan agreement with the bank, we have pledged all of our mortgage loans, church bonds and interim construction loans to the bank to secure the line of credit. The amount owing on the line of credit must not exceed an amount equal to 85% of the outstanding principal amount of the performing mortgage loans and church bonds and 50% of the outstanding principal amount of the performing interim construction loans. Applying that borrowing limit to our loan portfolio as of March 31, 2009, we can borrow up to the entire $49,000,000 line of credit limit. However, during the term of the loan agreement, we would not have the right to sell our loans, without the bank’s consent, since all of our loans have been pledged to the bank to secure the line of credit. Therefore, under our loan agreement, it will be very difficult, if not impossible, to sell our loans to meet our financial obligations.

Cash flows from operating activities consist primarily of net income. The primary components of net income are interest income and expense. Interest income should continue to be the main source of cash provided by operating activities; however, the availability of this cash flow is dependent upon the ability of the borrowers to repay loans. Cash provided by operating activities has been and is expected to be a relatively stable source of cash flow.

Cash flows from investing activities results primarily from investment in and payments received on mortgage and interim construction loans and church bonds.

Cash flows from financing activities relate primarily to the borrowings and payments on notes payable and the line of credit. Borrowings are made as funds are needed to make loans or as current obligations become due. Based upon our success to obtain borrowings in the past, we are confident that we will be able to obtain borrowings in the future in sufficient amounts, along with payments to be received on loans, to timely meet our obligations.

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Inflation

At March 31, 2009, the weighted average interest rate on our mortgage loan and church bond portfolio was 7.54% per annum while the weighted average interest rate upon all our borrowings was 3.74% per annum resulting in a net interest rate margin of 3.80%. By comparison, as of March 31, 2008, the weighted average interest rate on our mortgage loan and church bond portfolio was 8.39% per annum while the weighted average interest rate on our borrowings was 4.73% per annum resulting in a net interest rate margin of 3.66% per annum. Therefore, our net interest rate margin has increased by 14 basis points during the year ending March 31, 2009 as compared to March 31, 2008. Although a majority of the loans constituting our loan portfolio have been made at rates of interest that generally reprice either daily, annually, or otherwise periodically, a portion of the loans consti tuting our loan portfolio have been made at fixed rates of interest and therefore are not subject to being increased or decreased during the term of the loan. All of our indebtedness is either directly or indirectly tied to the prime rate of interest charged by major banking institutions and, therefore, is subject to fluctuation.

During periods of inflation, the prime rate of interest charged by major banking institutions, as well as the interest rate or cost of borrowing money from any lender, generally increases. Consequently, during an inflationary period our interest expense would increase. Since our interest income would not increase as rapidly, an increase in the interest expense would decrease our net income. However, interest income should subsequently increase as variable rate loans reprice.

Should the amount of our loans and the amount of our indebtedness remain constant, and should the weighted average interest rate upon the indebtedness increase to approximately 12.61% per annum, interest income and interest expense would be substantially equal.

Under the terms of the loan agreement with Amarillo National Bank, the interest rate on our line of credit adjusts in accordance with the lesser of the 30-day, 90-day or 180-day London Interbank Offered Rates (“LIBOR”) or the J.P. Morgan Chase & Co. prime rate, subject to an interest rate floor of 4%. The interest rate on our Master Note Agreements adjusts as and when the Prime Rate as published by the Wall Street Journal changes subject to a floor of 3%. Most of our loans are made on interest rates that are tied to the Prime Rate as published by the Wall Street Journal or a similar index used by major U.S. banking institutions. Therefore, our cost of funds should be tied to an index that is equal to or less than the index used to price our loan portfolio.

The loan agreement with Amarillo National Bank effective January 31, 2009 changed the index on the rate we pay on the line of credit from, at our option, either LIBOR plus 2.5% or the J. P. Morgan Chase prime rate. These indices are higher than under the previous loan agreement. Additionally, the new loan agreement provides for an interest rate floor of 4% and a commitment fee equal to .25% of the average quarterly unadvanced portion of the loan commitment.

Finally, effective February 1, 2009, we agreed to also place an interest rate floor of 3% on our Master Note Agreements. The interest rate floor on the Master Note Agreements was instituted in order to encourage the maintenance of this source of funds.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements or commitments other than our normal loan commitments.

New Accounting Standards

We do not believe the adoption of any recently issued pronouncements by the Financial Accounting Standards Board will have a significant impact on its financial statements.

Item 7A: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

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Item 8:

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Management’s Report on Internal Control over Financial Reporting

The management of Church Loans & Investments Trust (the “Company”) is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. The Company’s internal control over financial reporting is a process designed under the supervision of the Company’s Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external reporting purposes in accordance with U.S. generally accepted accounting principles. The Company’s management has made a comprehensive review, evaluation and assessment of the Company’s internal control over financial reporting as of March 31, 2009. In making its assessment of internal control over financial reporting, the Company’s management used the criteria issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control-Integrated Framework. In accordance with Section 404 of the Sarbanes-Oxley Act of 2002, the management of the Company makes the following assertions:

Management has implemented a process to monitor and assess both the design and operating effectiveness of internal control over financial reporting.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

The Company’s management assessed the effectiveness of the Company’s internal control over financial reporting as of March 31, 2009. In making this assessment, it used the criteria set forth by COSO in Internal Control-Integrated Framework. Based on that assessment, management believes that, as of March 31, 2009, the Company’s internal control over financial reporting is effective based on those criteria.

The Company’s Annual Report on Form 10-K for the period ended March 31, 2009 does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in the Annual Report on Form 10-K for the period ended March 31, 2009.

/s/ Kelly Archer .

Kelly Archer

President and CEO

(Principal Executive Officer)

/s/ Robert Fowler .

Robert Fowler

Senior Vice-President and CFO

(Principal Financial and Accounting Officer)

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Trust Managers and Shareholders

Church Loans & Investments Trust

Amarillo, Texas

We have audited the accompanying balance sheet of Church Loans & Investments Trust (a real estate investment trust) as of March 31, 2009, and the related statements of income, shareholders’ equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Church Loans & Investments Trust as of March 31, 2009, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

We were not engaged to examine management’s assessment of the effectiveness of Church Loans & Investments Trust’s internal control over financial reporting as of March 31, 2009, included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting and, accordingly, we do not express an opinion thereon.

Hein & Associates LLP

Houston, Texas

June 25, 2009

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Report of Independent Registered Public Accounting Firm

The Board of Trust Managers and Shareholders

Church Loans & Investments Trust

Amarillo, Texas

We have audited the accompanying balance sheet of Church Loans & Investments Trust (a real estate investment trust) as of March 31, 2008, and the related statements of income, shareholders' equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principl es 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 Church Loans & Investments Trust as of March 31, 2008, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Clifton Gunderson LLP

Phoenix, Arizona

June 25, 2008

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Commission File No. 0-8117

____________

CHURCH LOANS & INVESTMENTS TRUST		^®

(Exact name of registrant as specified in its charter)


Texas	75-6030254
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

5305 W Interstate 40 Amarillo, Texas 79106-4759
(Address of principal executive office)

(806) 358-3666
(Issuer’s telephone number including area code)
____________

Securities registered pursuant to Section 12(b) of the Act: None

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

Title of Each Class	Name of each Exchange on which registered
Shares of Beneficial Interest, $0.00 par value per share	None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes £ No x


Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes £ No x

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No £

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. £

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

	Large accelerated filer £	Accelerated filer £
	Non-accelerated filer £	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes £ No x

The aggregate market value of voting stock held by non-affiliates of the registrant was approximately $26,561,298 as of September 30, 2008.

The number of shares outstanding of each of the issuer’s classes of common stock, as of June 25, 2009 is 10,217,094 shares of beneficial interest.

DOCUMENTS INCORPORATED BY REFERENCE

None


CHURCH LOANS & INVESTMENTS TRUST Index To FORM 10-K For the Year Ended March 31, 2009
INDEX
Page
*Part I*

	Item 1.		Business…………………………...................................................................		1
	Item 1B.		Unresolved Staff Comments…...................................................................		6
	Item 2.		Properties …………….……………….............................................................		6
	Item 3.		Legal Proc eedings…… ……………...............................................................		6
	Item 4.		Submission of Matters to a Vote of Security Holders....................................		6

Pa rt II

	Item 5.		Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities………………………….......................			6
	Item 6.		Selected Financial Data…………………………………………………..………			8
	Item 7.		Management’s Discussion and Analysis of Financial Condition and Results of Operation..……………………………………...............................................			8
	Item 7A.		Quantitative and Qualitative Disclosures About Market Risk.........................			20
	Item 8.		Financial Statements and Supplementary Data.............................................			21
	Item 9.		Changes i n and Disagreements with Accountants on Accounting and Financial Disclosure……………………………………………….....................			39
	Item 9A(T).		Controls and Procedures…………………………...........................................			39
	Item 9B.		Other Inform ation…………………………………............................................			40

*Part III*

	Item 10.		Directors, Executive Officers and Corporate Governance….........................			40
	Item 11.		Execu tive C ompensation……………………………………….........................			42
	Item 12.		Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters………………………………………………........			43
	Item 13.		Certain Re l ationships and Related Transactions and Director Independence.....			44
	Item 14.		Principal Accountan t Fees and Services……………..…………………...……			45

*Part IV*

		Item 15.	Exhibits and Financial Statement Schedules……………...…........................			45

Signatur es……………………………………………………………………………………………….				47


		•			Competition in the business of making loans to churches;
		•			A decline in general economic conditions;
		•			A decline in real estate values affecting the value of the collateral securing our loans;
		•			A rise in interest rates resulting in higher cost of funds to us prior to the re-pricing of the loans owing to us;
		•			Our inability to borrow funds and at reasonable rates of interest;
		•			General risks of lending;
		•			Change in federal or state laws affecting our operations;
		•			Loss of critical management; and
		•			Other risks.


State	# of Loans	Permanent	Interim
Alabama	1	$88,907	$-0-
Arkansas	1	539,356	-0-
California	8	4,117,970	-0-
Connecticut	1	693,967	-0-
District of Columbia	1	-0-	762,860
Florida	18	7,821,274	2,864,500
Illinois	4	5,255,574	1,342,716
Indiana	6	5,545,798	-0-
Iowa	2	5,585,772	-0-
Louisiana	3	734,517	1,100,000
Maryland	3	857,665	-0-
Massachusetts	3	851,509	912,625
Michigan	2	1,068,335	-0-
Missouri	1	2,632,052	-0-
Nevada	3	697,548	750,047
New Jersey	4	1,538,101	626,392
New York	11	5,885,005	1,562,363
North Dakota	1	606,586	-0-
Ohio	6	3,833,789	-0-
Oklahoma	3	603,627	-0-
Pennsylvania	4	1,080,590	5,286,759
South Carolina	1	1,103,005	-0-
Tennessee	7	1,411,347	962,471
Texas	29	7,701,069	4,373,705
Virginia	1	248,576	-0-
Washington	1	221,697	-0-
Totals	125	$60,723,636	$20,544,438


2010	$ 22,891,480
2011	2,988,093
2012	2,876,502
2013	2,919,848
2014	2,615,959


Loan	Principal Outstanding	Maturity	Rate	Appraised Value of Collateral(1)	Fair Value of Collateral

Greater Life, Baltimore, MD	$ 8,026	11/01/2007	10.50%	$ 76,000	N/A

Holy Trinity, Brooklyn, NY	474,524	03/01/2026	9.50%	1,800,000	N/A

Rhema Word, Chicago, IL (2)	1,297,390	07/01/2025	9.50%	1,850,000	2,250,000



Spiritual Light, Detroit, MI	77,060	11/01/2014	9.75%	185,000	N/A

Messiah MBC, Indianapolis, IN (3)	1,432,774	09/01/2010	7.30%	1,370,000	1,233,000

Global Christian, Richmond, CA (4)	246,962	01/01/2014	9.50%	640,000	N/A

Right Spirit, Spanish Fort, AL (5)	88,907	05/01/2014	9.25%	274,000	N/A



Cathedral of Faith, Tampa, FL	741,402	09/01/2024	6.75%	2,018,000	N/A

Biltmore Group, West Monroe, LA (6)	1,100,000	06/01/2004	7.50%	1,213,000	1, 200,000

Love Temple, Memphis, TN (7)	237,576	01/15/2007	5.00%	105,300	105,300

Project Love, Memphis, TN (7)	255,840	01/15/2007	5.00%	155,100	155,100

Igreja Baptista Pompano Beach, FL	263,836	05/01/2025	7.75%	388,000	400,000

Canaan COGIC Memphis, TN	275,433	03/01/2010	8.00%	245,000	325,000

Ministerio International Virginia Gardens, FL	2,500,000	10/01/2008	10.25%	3,900,000	2,800,000


Quarter	Fiscal 2009		Fiscal 2008
	High	Low	High	Low

April-June	3.15	2.50	3.50	3.30

July-September	3.50	2.75	3.35	3.00

October-December	3.50	2.88	3.25	3.00

January-March	3.30	2.70	3.25	2.50


Cash on hand at the beginning of the year	$	109,987
Net cash flows provided by operating activities		3,217,545
Net cash flows provided by financing activities		9,437,745
Subtotal	$	12,765,277
Less net cash flows used by investing activities prior to payment of dividends		(9,073,601)

Net cash flows available to pay dividends	$	3,691,676
Less cash dividends paid		(3,575,982)

Cash on hand at the end of the year	$	115,694


	For the Year Ended 3/31/09		For the Year Ended 3/31/08		Increase (Decrease)

Mortgage loans		$ 4,539,186		$ 4,477,815	$ 61,371

Interim loans		922,549		1,810,856	( 888,307)

Commitment Fees		515,459		897,255	( 381,796)

Other Income and Fees		122,104		118,876	3,228

Total		$ 6,099,298		$ 7,304,802	($ 1,205,504)


Type of Loan	03/31/09	03/31/08	Increase (Decrease)

Total Mortgage Loans and Church Bonds	$58,659,638	$55,220,408	$ 3,439,230

Total interim loans	20,286,014	12,711,879	7,574,135

Total loan portfolio	$78,945,652	$67,932,287	$11,013,365


Performing Loans	03/31/09	03/31/08	Increase (Decrease)

Performing Mortgage Loans and Church Bonds	$55,512,158	$50,389,558	$ 5,122,600

Performing Interim Loans	16,686,014	11,611,879	5,074,135

Total Performing Loans	$72,198,172	$62,001,437	$10,196,735


Non-Performing Loans	03/31/09	03/31/08	Increase (Decrease)

Non-Performing Mortgage Loans and Church Bonds	$3,147,480	$4,830,850	$(1,683,370)

Non-Performing Interim Loans	3,600,000	1,100,000	2,500,000

Total Non-Performing Loans	$6,747,480	$5,930,850	$ 816,630


Loan	Principal Outstanding	Foreclosure Action Taken

Greater Life, Baltimore, MD	$ 8,026	None. Balance is small and church is making sporadic payments.

Holy Trinity, Brooklyn, NY	474,524	None. Church is making payments and is staying within 90-120 days of being current. Debt is well secured

Rhema Word, Chicago, IL	1,297,390	None. Church is making payments. Debt is well secured. Church is trying to sell one of its properties to reduce debt and debt service.

Spiritual Light, Detroit, MI	77,060	None. Church is making payments. Balance is relatively small.

Global Christian, Richmond, CA	246,962	None. Church is making payments.

Right Spirit, Spanish Fort, AL	88,907	None. Church is making payments and is staying within 120 days.

Cathedral of Faith, Tampa, FL	741,402	None. Seeking insurance settlement proceeds. In dispute with public adjustor regarding insurance settlement.

Love Temple, Memphis, TN	237,576	Litigation pending involving this loan, arising out of a dispute within the church. Church is making sporadic payments.

Project Love, Memphis, TN	255,840	Litigation pending involving this loan, arising out of a dispute within the church. Church is making sporadic payments.

Canaan COGIC, Memphis, TN	275,433	None, but legal action is presently being considered.

Igreja Batista, Pompano Beach, FL	263,835	None. Church is making payments and is less than 90 days past due.

Messiah MBC, Indianapolis, IN	1,432,774	None. Church has been making weekly payments and a new forbearance agreement is pending.

Biltmore Group, West Monroe, LA	1,100,000	Foreclosure has been initiated and is pending.

Ministerio Intl., Virginia Gardens, FL	2,500,000	Foreclosure has been initiated and is pending. Church is cooperating in a friendly foreclosure action.


Month	Fiscal 2009	Fiscal 2008	Difference

April	$67,469,937	$75,224,697	$(7,754,760)
May	67,605,082	73,025,212	(5,420,130)
June	66,936,845	75,834,147	(8,897,302)
July	68,042,859	75,574,185	(7,531,326)
August	67,615,745	77,199,504	(9,583,759)
September	67,030,510	76,732,462	(9,701,952)
October	66,201,480	75,134,551	(8,933,071)
November	66,827,582	72,905,373	(6,077,791)
December	70,479,582	70,465,992	13,590
January	71,559,190	67,103,438	4,455,752
February	73,272,904	67,654,360	5,618,544
March	78,945,652	67,932,287	11,013,365

Monthly Average:	$69,331,447	$72,898,851	$(3,567,404)


CHURCH LOANS & INVESTMENTS TRUST
(A Real Estate Investment Trust)
BALANCE SHEETS
March 31, 2009 and 2008

ASSETS
			2009			2008

	CASH AND CASH EQUIVALENTS	$	115,694	$		109,987
	RECEIVABLES
	Mortgage loans and church bonds – performing		55,512,158			50,389,558
	Interim construction loans – performing		16,686,014			11,611,879
	Nonperforming mortgage loans, church bonds and interim construction loans		6,747,480			5,930,850
	Less: Allowance for credit losses		(1,626,760)			(1,786,477)
			77,318,892			66,145,810
	Accrued interest receivable		577,413			608,930
	Notes receivable		1,000			2,000
	Net receivables		77,897,305			66,756,740
	PROPERTY AND EQUIPMENT, net of accumulated depreciation of $538,028 and $536,136 in 2009 and 2008, respectively		214,932			216,996
	OTHER REAL ESTATE OWNED		-			1,735,650
	OTHER ASSETS		87,644			36,950
	TOTAL ASSETS	$	78,315,575	$		68,856,323

	LIABILITIES AND SHAREHOLDERS’ EQUITY
	LIABILITIES
	Notes payable and line of credit:
	Related parties	$	12,601,983		$		13,059,425
	Other		34,276,153				24,380,966
			46,878,136				37,440,391
	Accrued interest payable		95,349				49,617
	Other		241,360				183,011
	Total liabilities		47,214,845				37,673,019
	Commitments and Contingencies (Note 9)

	SHAREHOLDERS’ EQUITY
	Shares of beneficial interest, no par value; authorized shares unlimited, 10,223,690 shares issued		29,762,291				29,762,291
	Undistributed net income		1,354,929				1,437,503
	Treasury shares, at cost (6,596 shares)		(16,490)				(16,490)
	Total shareholders’ equity		31,100,730				31,183,304


CHURCH LOANS & INVESTMENTS TRUST
(A Real Estate Investment Trust)
STATEMENTS OF INCOME
Years ended March 31, 2009 and 2008

		2009		2008

INTEREST AND FEE INCOME:
Interest income	$	5,583,839	$	6,407,547

Fee income		515,459		897,255

Interest and fee income		6,099,298		7,304,802

INTEREST EXPENSE		1,332,326		2,749,919

Net interest income		4,766,972		4,554,883

PROVISION FOR CREDIT LOSSES		170,000		125,000

Net interest income less provision for possible credit losses		4,596,972		4,429,883

OTHER INCOME

Gain on sale of other real estate owned		76,076		508,555

Other		56,901		46,403
Other income		132,977		554,958

OTHER OPERATING EXPENSES

General and administrative		1,062,219		1,601,339

Board of Trust Managers’ fees		79,212		51,700

Total other operating expenses		1,141,431		1,653,039

Income before provision for income taxes		3,588,518		3,331,802


CHURCH LOANS & INVESTMENTS TRUST
(A Real Estate Investment Trust)
STATEMENTS OF SHAREHOLDERS’ EQUITY
Years ended March 31, 2009 and 2008




	Shares of beneficial interest						Undistributed			Treasury
	Shares			Amount			net income				shares			Total
Balance, March 31, 2007	10,223,690		29,762,291			1,337,359			(16,490)				31,083,160

Net income	-		-			3,267,444			-				3,267,444

Cash dividends ($0.31 per share)	-		-			(3,167,300)			-				(3,167,300)
Balance, March 31, 2008	10,223,690		29,762,291			1,437,503			(16,490)				31,183,304

Net income	-		-			3,493,408			-				3,493,408

Cash dividends ($0.35 per share)	-		-			(3,575,982)			-				(3,575,982)
Balance, March 31, 2009	10,223,690	$	29,762,291		$	1,354,929		$	(16,490)			$	31,100,730










These financial statements should be read in connection with the accompanying summary of significant accounting policies and notes to financial statements.


CHURCH LOANS & INVESTMENTS TRUST
(A Real Estate Investment Trust)
STATEMENTS OF CASH FLOWS
Years ended March 31, 2009 and 2008

		2009		2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	3,493,408	$	3,267,444
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		2,064		2,064
Provision for credit losses		170,000		125,000
Gain on sale of other real estate owned		(76,076)		(508,555)
Amortization of loan discounts		(34,057)		(31,980)
Amortization of commitment fees		(422,698)		(826,602)
Changes in:
Accrued interest receivable		31,517		(94,755)
Accrued interest payable		45,732		(72,631)
Federal income tax payable		(68,884)		22,739
Other liabilities		81,088		(3,302)
Other, net		(4,549)		1,578
Net cash provided by operating activities		3,217,545		1,881,000

CASH FLOWS FROM INVESTING ACTIVITIES
Investment in mortgage and interim construction loans and church bonds		(24,514,696)		(32,306,970)
Payments received on mortgage and interim construction loans and church bonds		15,590,285		38,751,423
Payments received on notes receivable		1,000		1,000
Net proceeds (expenses) from sale of other real estate owned		(150,190)		1,025,000
Net cash provided (used) by investing activities		(9,073,601)		7,470,453

CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on notes payable and line of credit		39,226,835		44,758,670
Principal payments on notes payable and line of credit		(29,789,090)		(50,928,248)
Cash dividends paid		(3,575,982)		(3,167,300)
Net cash used by financing activities		(5,861,763)		(9,336,878)
Increase in cash and cash equivalents		5,707		14,575

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		109,987		95,412

CASH AND CASH EQUIVALENTS AT END OF YEAR	$	115,694	$	109,987


These financial statements should be read in connection with the accompanying summary of significant accounting policies and notes to financial statements.


	Loan and church bond portfolio	Total indebtedness	Net interest rate margin
March 31, 2009	7.54%	3.74%	3.80%
March 31, 2008	8.39%	4.73%	3.66%


	2009			2008
Description	No. of Loans		Carrying amount		No. of Loans		Carrying amount
Over $1,500,000	10	$	28,068,376		10	$	23,588,376
$1,300,000-1,499,999	2		2,777,802		2		2,731,440
$1,000,000-1,299,999	10		11,213,239		9		10,288,422
$900,000-999,999	6		5,736,627		2		1,903,080
$800,000-899,999	2		1,726,488		2		1,709,529
$700,000-799,999	4		3,008,437		4		3,062,595
$600,000-699,999	13		8,563,044		13		8,434,112
$500,000-599,999	9		5,016,999		9		4,933,647
$400,000-499,999	8		3,693,282		6		2,711,020
$300,000-399,999	10		3,390,410		7		2,471,693
$200,000-299,999	20		5,131,958		23		5,814,789
$100,000-199,999	10		1,654,495		9		1,323,705
Under $100,000	21		1,345,850		21		1,102,989
	125		81,327,007		117		70,075,397
Less: unamortized purchase discounts on mortgage loans			(996,541)				(1,030,598)
Less: deferred commitment fees			(1,384,814)				(1,112,512)
Less: allowance for credit losses			(1,626,760)				(1,786,477)
Total		$	77,318,892			$	66,145,810



Impacting Your World Ministries, Philadelphia, PA; interest at prime plus 2.0% with a floor of 6.0% (6.0% at March 31, 2009); principal and interest due on maturity on March 1, 2010.	$	5,286,759
Bickford Cottage LLC, Peoria, IL; interest at prime plus 1.5% with a floor of 9.75% (9.75% at March 31, 2009, scheduled to reprice January 1, 2010); monthly payments of $36,092 to maturity on January 1, 2032		3,958,185

Bickford Cottage LLC, West Des Moines, IA; interest at prime plus 2.0% with a floor of 6.0% (6.0% at March 31, 2009, scheduled to reprice January 1, 2012); monthly payments of $21,493 to maturity on January 1, 2029.		2,986,982

Community Protestant Church of Co-Op City, Bronx, NY; interest at prime plus 2.0% with a floor of 9.25% (9.25% at March 31, 2009, scheduled to reprice January 1, 2012); monthly payments of $26,249 to maturity on January 1, 2026		2,683,279

Christ Temple Pentecostal Church, Kansas City, MO; interest at prime plus 2.5% with a floor of 10.75% (10.75% at March 31, 2009, scheduled to reprice March 1, 2012); monthly payments of $31,387 to maturity on March 1, 2022		2,632,052

Great Plains Assisted Living L.L.C., Sioux City, IA; interest at prime plus 1.5% with a floor of 5.5% (5.5% at March 31, 2009, scheduled to reprice January 1, 2014); monthly payments of $17,960 to maturity on January 1, 2029		2,598,790

Ministerio Internacional Creciendo, Virginia Gardens, FL; interest at prime plus 2.0% with a floor of 12.25% (12.25% at March 31, 2009); principal and interest due on maturity on October 1, 2008		2,500,000


	$	22,646,047


2010	$	22,891,480
2011		2,988,093
2012		2,876,502
2013		2,919,848
2014		2,615,959


		2009		2008
Balance at beginning of year	$	1,786,477	$	1,713,249
Charge-offs		(329,717)		(51,772)
Provision charged to operating expenses		170,000		125,000
Balance at end of year	$	1,626,760	$	1,786,477


	Balance at end of year			Weighted average interest rate at end of year				Maximum amount outstanding at any month-end			Average month-end balance	Weighted average interest rate for the year
March 31, 2009
Line of credit payable to bank		$	25,365,000		4.23%	*	$		25,365,000	$	14,837,583	3.88%*
Other demand notes payable			21,513,136		3.00%				24,842,669		22,353,474	3.37%
TOTAL		$	46,878,136		3.74%		$		50,207,669	$	37,191,057	3.57%
March 31, 2008
Line of credit payable to bank		$	12,903,000		4.69%	*	$		25,288,000	$	19,312,667	6.74%*
Other demand notes payable			24,537,391		4.75%				24,634,889		22,586,485	6.41%
TOTAL		$	37,440,391		4.73%		$		49,922,889	$	44,902,152	6.56%


		2009		2008

Computed "expected" federal income tax provision	$	1,255,981	$	1,166,131
Increases (decreases) in taxes resulting from:
Dividends		(1,215,834)		(1,144,315)
Graduated rate differential		(5,277)		(6,938)
Difference in provision for credit losses for financial and tax purposes		61,699		87,580
Difference in accounting for interest income recognized for financial and tax purposes		(7,355)		(6,112)
Other		5,895		(31,988)

Actual provision for income taxes	$	95,110	$	64,358


		Dividend amount
Date of record	Date paid	Per Share		Total

March 31, 2007	May 2007		.06		613,026
December 31, 2007	January 2008		.25		2,554,274
March 31, 2008	May 2008		.07		715,197
December 31, 2008	January 2009		.28		2,860,785


		2009		2008
Supplemental cash flow information

Interest paid	$	1,286,594	$	2,822,550

Income taxes paid	$	163,994	$	10,228

Schedule of noncash investing activity:

Interim loans issued for sale of real estate acquired through foreclosure	$	1,961,916	$	-


	Board of Trust Managers. The following information is furnished as to each individual who now serves as a member of our Board of Trust Managers. This information includes each Trust Manager’s business experience for the last 5 years.

		B. R. McMorries, age 82 is a consulting engineer. He has served as a Trust Manager since 1963. He serves as Chairman of the Board of Trust Managers

		Larry G. Brown, age 66 is the President of Larry Brown Realtors, Inc. and is a licensed realtor. He has served as a Trust Manager since 1981. He serves as Vice-Chairman of the Board of Trust Managers

		Jack R. Vincent, age 79 is engaged in farming and ranching operations. He has served as a Trust Manager since 1989.

		Steven Rogers, age 61 is a commercial real estate agent. He has served as a Trust Manager since 1990.

		Michael A. Bahn, age 65 is the Vice-President of Amarillo Blueprint Co., an office equipment and supply and reproduction services business. He has served as a Trust Manager since 1997. He serves as Secretary of the Board of Trust Managers.

		Michael W. Borger, age 54 is the President of Turnkey Leasing, Ltd., an equipment leasing business. Mr. Borger has served as a Trust Manager from 1988 to 1990 and again since 2002.

		Stephen W. Myers, age 53, is the principal owner and President of Turnkey Computer Systems, LLC, a computer software provider with emphasis in the cattle feeding industry. Mr. Myers has served as a Trust Manager since January 2008.

		E. Stan Morris, Jr., age 61, is a certified public accountant and an employee of the public accounting firm of Brown, Graham & Company, P.C. Mr. Morris has served as a Trust Manager since January 2008.

(b)	Executive Officers. The following information is furnished as to each individual who now serves as an executive officer and who is not mentioned under "Board of Trust Managers" above:

		M. Kelly Archer, age 57, serves as President, Manager of Operations and Chief Executive Officer. As such, Mr. Archer functions as our Executive Officer. Mr. Archer has served in this capacity for 27 years.

		Robert E. Martin, age 59, serves as our Senior Vice-President-Lending. Mr. Martin has served in such capacity since 1999. Prior to serving in such capacity, Mr. Martin served as the President/CEO of Santa Fe Federal Credit Union. Mr. Martin also served as a member of our Board of Trust Managers prior to becoming our Senior Vice-President.


			Robert E. Fowler, age 56, serves as our Senior Vice-President-CFO and Information Systems. Mr. Fowler has served in such capacity for 27 years.

			Scott C. Nickson, age 27, serves as Vice-President-Lending. Mr. Nickson has served in such capacity since 2008. Prior to serving in such capacity, Mr. Nickson served as a high school teacher and coach. Mr. Nickson holds a BBA in Finance and a Master of Science in Economics, both degrees from Texas A & M University.


				Annual Compensation
Name and Principal Position	Fiscal Year		Salary			Bonus		Other Annual Compensation
PEO - M. Kelly Archer Manager of Operations	2009 2008 2007	$	115,704 115,704 112,854		$	5,263 -0- -0-	$	20,100 19,650 19,500


Trust Manager	Fees earned or paid in cash		Stock Awards, Option Awards, Non-equity incentive plan compensation, Nonqualified deferred compensation earnings, and All other compensation		Total

Bill R. McMorries		$12,300		$0	$12,300
Larry G. Brown		10,000		0	10,000
Jack R. Vincent		8,500		0	8,500
Steven Rogers		11,100		0	11,100
Michael A. Bahn		10,100		0	10,100
Michael W. Borger		8,500		0	8,500
Stephen W. Myers		9,600		0	9.600
E. Stan Morris, Jr.		8,200		0	8,200

Total		$78,300		$0	$78,300


B. R. McMorries 1601 Jordan, Amarillo, TX 79106	423,672	4.15%

Larry G. Brown 4522 Tutbury, Amarillo, TX 79119	42,787	0.42%



Jack R. Vincent 6303 Stoneham Drive, Amarillo, TX 79109	3,500	0.03%

Steven Rogers 6206 Calumet, Amarillo, TX 79106	2,800	0.03%

Michael A. Bahn 7134 Adirondack Trail, Amarillo, TX 79106	1,650	0.02%

Stephen W. Myers 8401 New England Drive, Amarillo, TX 79119	50,000	0.49%

Michael W. Borger 43 Cypress Point, Amarillo, TX 79124	63,000	0.62%

E. Stan Morris, Jr. 6308 Calumet Road, Amarillo, TX 79106	5,000	0.05%

M. Kelly Archer 7200 Dreyfuss Road, Amarillo, TX 79106	242,368	2.37%

Robert E. Fowler 6714 Mosley St., Amarillo, TX 79119	23,287	0.23%

Robert E. Martin 8 Country Club Drive, Amarillo, TX 79124	10,261	0.10%

Scott C. Nickson 6718 Nicholas Drive., Amarillo, TX 79109	425	0.00%

All Trust Managers and Executive Officers as a Group	868,750	8.50%


CHURCH LOANS & INVESTMENTS TRUST (A Real Estate Investment Trust) INDEX TO EXHIBITS
(2)		None
(3)		(i) Amended and Restated Declaration of Trust dated July 16, 2004, previously filed as an exhibit to the Trust’s Definitive Proxy Statement, Form DEF 14A, dated June 25, 2004 (File No. 000-08117) and is incorporated by reference.
		(ii) Amended and Restated Bylaws dated July 16, 2004, previously filed as an exhibit to the Trust’s Definitive Proxy Statement, Form DEF 14A, dated June 25, 2004 (File No. 000-08117) and is incorporated by reference.
(4)		None other than those listed in (3) above.
(9)		None
(10)		Loan Agreement dated January 31, 2009 entered into by and between Church Loans and Amarillo National Bank included as an exhibit to Issuer’s Form 10-QSB for the quarterly period ended December 31, 2008, under File No. 000-08117 and is incorporated by reference. Form of Master Note Agreements
(11)		Statement regarding computation of per share earnings-omitted since information necessary to make the computation is included in the Financial Statements and Note 4 thereto.
(12)		Not applicable.
(13)		None
(14)		Code of Ethics for Officers
(16)		Letter from Clifton Gunderson LLP dated February 27, 2009 previously filed as an Exhibit to Issuer’s Form 8-K filed (File No. 000-08117) March 2, 2009, and is incorporated by reference.
(18)		None
(21)		None
(22)		None
(23)		None
(24)		None
(31)		(i)(1) Certification of President (Principal Executive Officer and CEO) Pursuant to Exchange Act Rule 13a-14(a)/15d-14(a).
		(2) Certification of Senior Vice-President and CFO (Principal Financial Officer) Pursuant to Exchange Act Rule 13a-14(a)/15d-14(a).
		(ii) None
(32)		Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(33)		None
(34)		None
(35)		None
(99)		None
(100)		None



SIGNATURES

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

			CHURCH LOANS & INVESTMENTS TRUST

				By:	/s/ B.R. McMorries
					B.R. McMorries Chairman of the Board of Trust Managers

DATED: June 26, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.


	Signature	Capacity				Date

	/s/ B.R. McMorries . B.R. McMorries	Chairman of the Board of Trust Managers				6/26/2009

	/s/ Larry G. Brown . Larry G. Brown	Vice-Chairman of the Board of Trust Managers				6/26/2009

	/s/ Michael A. Bahn . Michael A. Bahn	Secretary of the Board of Trust Managers				6/26/2009

	/s/ M. Kelly Archer . M. Kelly Archer	President, Principal Executive Officer and CEO				6/26/2009

	/s/ Robert E. Fowler . Robert E. Fowler	Senior Vice-President, Controller and Principal Accounting Officer				6/26/2009

	/s/ Jack R. Vincent . Jack R. Vincent	Trust Manager				6/26/2009

	/s/ Steven Rogers . Steven Rogers	Trust Manager				6/26/2009

	/s/ Stephen W. Myers . Stephen W. Myers	Trust Manager				6/26/2009

	/s/ Michael W. Borger . Michael W. Borger	Trust Manager				6/26/2009

	/s/ E. Stan Morris, Jr. . E. Stan Morris, Jr.	Trust Manager				6/26/2009


Exhibit 14 CHURCH LOANS & INVESTMENTS TRUST CODE OF ETHICS FOR OFFICERS

In my role as an officer of Church Loans & Investments Trust (the “Trust”), I hereby certify that I adhere to and advocate the following principles and responsibilities governing my professional and ethical conduct.

I pledge that to the best of my knowledge and ability:

1.	I will, at all times, act with honesty and integrity, avoiding actual or apparent conflicts of interest in regard to my dealings with or on behalf of the Trust and refrain from using the Trust’s name, facilities or relationships for personal gain. To that end, I will be sensitive to any activities, interests or relationships that might interfere with, in fact or in appearance, my ability to act in the best interest of the Trust, including, but not limited to:

	a.	Corporate Opportunities. I recognize that I owe a duty to the Trust to advance its legitimate interests when the opportunity to do so arises. I will not take for myself a corporate opportunity that is discovered in the course of my employment with the Trust or through the use of Trust property, information or position, nor shall I compete against the Trust.

	b.	Related Party Business Dealings. I will notify the Board of Trust Managers of any existing or proposed business relationship or transaction the Trust may have with any company in which I or a related party has a direct or indirect interest or from which I or a related party may derive a benefit, or where a related party is employed, if such a relationship or transaction might give rise to the appearance of a conflict of interest. For purposes of this Code of Ethics the term “related party” shall mean spouse, child, stepchild, parent, stepparent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, and includes adoptive relationships.

	c.	Improper Inducements. I will not accept a gift or anything of value from a third party assisting any person or entity in securing business from or employment with the Trust.

	I recognize that conflicts of interest may not always be clear-cut, so if I have a question about a potential conflict I will consult with the Board of Trust Managers or the Trust’s legal counsel.

2.	I will, at all times, provide my fellow officers, superiors, the Board of Trust Managers, independent auditors of the Trust, legal counsel for the Trust, and shareholders with information that is accurate, complete, objective, relevant, timely and understandable. In this regard, I will provide full, fair, accurate, timely and understandable disclosure in any periodic reports required to be filed by the Company with the Securities and Exchange Commission as applicable to my position, and I will report any untrue statement of material fact and any omission of material fact of which I may become aware pertaining to information prepared by me or by associates in my area(s) of responsibility that affect the disclosures made by the Trust in its public filings.

3.	I will, at all times, comply with applicable rules and regulations of federal, state and local governments, and other appropriate private and public regulatory agencies.

4.	I will, at all times, act in good faith, responsibly, with due care, confidence and diligence, without misrepresenting material facts or relying on my independent judgment to be subordinated or compromised.

5.	I will, at all times, respect the confidential information entrusted to the Trust, except when authorized or otherwise legally obligated to disclose same and will never use confidential information acquired in the course of my work for personal advantage or gain.


6.	I will, at all times, promote ethical behavior among others in my work environment, including fellow employees of the Trust, the Board of Trust Managers, and those persons in which I may come in contact with when acting on behalf of the Trust. To the extent I believe there has been a violation of this Code, other rules or regulations applicable to the Trust and the operation of its business, or any applicable securities or other laws, and the person I believe to be in violation fails to correct or remedy the violation when it is brought to his or her attention, I shall report any information I may have concerning the potential violation to the independent auditors and the Board of Trust Managers.

7.	Finally, I will, at all times, exercise the utmost care and responsibility in the use of and control over assets and resources of the Trust which are employed by or entrusted to me.


	Signed this 25th day of November, 2008.


		/s/ M. Kelly Archer . M. Kelly Archer President and CEO /s/ Robert E. Fowler . Robert E. Fowler Senior Vice-President and CFO /s/ Robert Martin . Robert Martin, Vice-President-Lending /s/ Scott C. Nickson . Scott C. Nickson, Vice-President