Holly Mortgage Trust (the "Trust" or "Holly"), began operations in January 1998. It reorganized from a Massachusetts business trust to a Texas real estate investment trust ("REIT") in 2008. The Trust originates and purchases real estate loans, trust deeds, mortgages and real estate lien promissory notes associated with real properties ("Mortgage Loans") located in the continental United States.
The Trust was originally organized as a wholly owned subsidiary of First Commonwealth Mortgage Trust ("FCMT") and most of the Trust's shares were distributed as a dividend in January, 1998 on the basis of one share of Holly stock for each four shares of FCMT stock. The distribution was intended to allow the shareholders of FCMT to participate in an investment fund which made loans having slightly higher investment risks.