SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549




                                    Form 8-K



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




        Date of Report (Date of earliest event reported): August 17, 2001




                             COLONIAL TRUST COMPANY
             (Exact name of registrant as specified in its charter)

                           ARIZONA 0-18887 75-2294862
  (State or other jurisdiction of (Commission File No.) (IRS Employer ID No.)
                                 incorporation)



                   5336 N. 19th Avenue, Phoenix, Arizona 85015
               (Address of principal executive office) (Zip Code)



       Registrant's telephone number, including area code: (602) 242-5507


                 ______________________________________________
          (Former name or former address, if changed since last report)



<PAGE>2


                             COLONIAL TRUST COMPANY

                                    FORM 8-K

                                 CURRENT REPORT


ITEM 5. OTHER EVENTS

     On March 16,  2001,  Stevens  Financial  Group,  Inc.  ("Stevens")  filed a
Voluntary  Petition under Chapter 11 of the United States Bankruptcy Code in the
United  States   Bankruptcy   Court  for  the  District  of  Arizona  (Case  No.
01-03105-ECF-RTB) (the "Stevens Bankruptcy Proceeding").  Colonial Trust Company
("Colonial")  serves as Trustee under a series of Trust  Indentures which secure
obligations of Stevens under certain Time Collateralized  Certificates and Fixed
Rate Investment Certificates (debt instruments).

     Stevens  has  defaulted  on  all  of its  outstanding  Collateralized  Time
Cerificates  and  Fixed  Rate  Investment  Certificates.  Based  on  information
provided to it, Colonial  believes that as of the date of Stevens filing of its
Chapter  11  Petition,  the  aggregate  unpaid  principal  amount  of such  debt
instruments  was  approximately  $64  million,  and accrued and unpaid  interest
through the date of the Chapter 11 Petition was approximately $13.5 million.

     Colonial  has  received  a demand  letter  from  counsel  for the  Official
Committee  of Investor  Creditors  in the Stevens  Bankruptcy  Proceeding.  This
demand  letter,  a copy of which is attached  hereto as Exhibit 1,  alleged that
Colonial made certain  errors and omissions in the  performance of its duties as
Indenture Trustee under the above Trust Indentures.  In such demand letter,  the
Official  Committee  of  Investor  Creditors  stated that it is in a position to
commence a lawsuit against Colonial for damages,  in the amount of approximately
$61 million as of the date of such letter,  allegedly  suffered by such Investor
Creditors. Colonial has provided the letter to its E&O insurance carrier.

     Colonial  denies  legal  liability  for the  claims  set forth in the above
demand letter. However, the maximum coverage afforded under applicable insurance
policies is $5 million.  In the event Colonial incurs  liabilities which are not
covered by one or more of its insurance policies,  such liabilities could have a
material  adverse  impact on the  Company's  financial  condition and results of
operations. Moreover, in certain instances such liabilities or other occurrences
in the Stevens  Bankruptcy  Proceeding  could affect the  Company's  Certificate
issued by the Arizona Banking Department. Such Certificate must be maintained in
order for Colonial to operate as a trust company in Arizona. If the Company were
unable to recover the costs and expenses it has  incurred to date in  connection
with the Stevens  Bankruptcy  Proceeding,  or if the Company  incurs  additional
costs and expenses in connection  with such Proceeding or in connection with the
claims  shich  have  been  threatened  by the  Official  Committee  of  Investor
Creditors,  this could have a material adverse effect on the Company's financial
condition,  results of operations, and Certificate issued by the Arizona Banking
Department.


ITEM 7.  EXHIBITS

1.   Letter from  Official  Committee of Investor  Creditors  to Colonial  Trust
     Company


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

   September 18, 2001.                          COLONIAL TRUST COMPANY

                                            By:      /s/ John K. Johnson
                                                         John K. Johnson
                                             Its Chief Executive Officer
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{"company-data": {"conformed-name": "COLONIAL TRUST CO /AZ", "cik": "0000869296", "assigned-sic": "6799", "irs-number": "752294862", "state-of-incorporation": "AZ", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-18887", "film-number": "1739609"}, "business-address": {"street1": "5336 NORTH 19TH AVENUE", "city": "PHOENIX", "state": "AZ", "zip": "85015", "phone": "602-242-55"}, "mail-address": {"street1": "5336 N 19TH AVE", "city": "PHOENIX", "state": "AZ", "zip": "85015"}}
SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    Form 8-K

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

        Date of Report (Date of earliest event reported): August 17, 2001

                             COLONIAL TRUST COMPANY
             (Exact name of registrant as specified in its charter)

                           ARIZONA 0-18887 75-2294862
  (State or other jurisdiction of (Commission File No.) (IRS Employer ID No.)
                                 incorporation)

                   5336 N. 19th Avenue, Phoenix, Arizona 85015
               (Address of principal executive office) (Zip Code)

       Registrant's telephone number, including area code: (602) 242-5507

                 ______________________________________________
          (Former name or former address, if changed since last report)
2

                             COLONIAL TRUST COMPANY

                                    FORM 8-K

                                 CURRENT REPORT

ITEM 5. OTHER EVENTS

     On March 16,  2001,  Stevens  Financial  Group,  Inc.  ("Stevens")  filed a
Voluntary  Petition under Chapter 11 of the United States Bankruptcy Code in the
United  States   Bankruptcy   Court  for  the  District  of  Arizona  (Case  No.
01-03105-ECF-RTB) (the "Stevens Bankruptcy Proceeding").  Colonial Trust Company
("Colonial")  serves as Trustee under a series of Trust  Indentures which secure
obligations of Stevens under certain Time Collateralized  Certificates and Fixed
Rate Investment Certificates (debt instruments).

     Stevens  has  defaulted  on  all  of its  outstanding  Collateralized  Time
Cerificates  and  Fixed  Rate  Investment  Certificates.  Based  on  information
provided to it, Colonial  believes that as of the date of Stevens filing of its
Chapter  11  Petition,  the  aggregate  unpaid  principal  amount  of such  debt
instruments  was  approximately  $64  million,  and accrued and unpaid  interest
through the date of the Chapter 11 Petition was approximately $13.5 million.

     Colonial  has  received  a demand  letter  from  counsel  for the  Official
Committee  of Investor  Creditors  in the Stevens  Bankruptcy  Proceeding.  This
demand  letter,  a copy of which is attached  hereto as Exhibit 1,  alleged that
Colonial made certain  errors and omissions in the  performance of its duties as
Indenture Trustee under the above Trust Indentures.  In such demand letter,  the
Official  Committee  of  Investor  Creditors  stated that it is in a position to
commence a lawsuit against Colonial for damages,  in the amount of approximately
$61 million as of the date of such letter,  allegedly  suffered by such Investor
Creditors. Colonial has provided the letter to its E&O insurance carrier.

     Colonial  denies  legal  liability  for the  claims  set forth in the above
demand letter. However, the maximum coverage afforded under applicable insurance
policies is $5 million.  In the event Colonial incurs  liabilities which are not
covered by one or more of its insurance policies,  such liabilities could have a
material  adverse  impact on the  Company's  financial  condition and results of
operations. Moreover, in certain instances such liabilities or other occurrences
in the Stevens  Bankruptcy  Proceeding  could affect the  Company's  Certificate
issued by the Arizona Banking Department. Such Certificate must be maintained in
order for Colonial to operate as a trust company in Arizona. If the Company were
unable to recover the costs and expenses it has  incurred to date in  connection
with the Stevens  Bankruptcy  Proceeding,  or if the Company  incurs  additional
costs and expenses in connection  with such Proceeding or in connection with the
claims  shich  have  been  threatened  by the  Official  Committee  of  Investor
Creditors,  this could have a material adverse effect on the Company's financial
condition,  results of operations, and Certificate issued by the Arizona Banking
Department.

ITEM 7.  EXHIBITS

1.   Letter from  Official  Committee of Investor  Creditors  to Colonial  Trust
     Company

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

   September 18, 2001.                          COLONIAL TRUST COMPANY

                                            By:      /s/ John K. Johnson
                                                         John K. Johnson
                                             Its Chief Executive Officer