<HTML>
<HEAD>
<TITLE>8-K</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>WASHINGTON, D.C. 20549</FONT></H1>

<HR SIZE="2" COLOR="BLACK" NOSHADE="NOSHADE">

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>FORM 8-K<BR>
CURRENT REPORT</FONT></H1>


<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date
of Report (Date of earliest event reported): October 23, 2009</FONT></P>

<P ALIGN=CENTER> <FONT FACE="Times New Roman, Times, Serif" SIZE="4"><B>NTS MORTGAGE INCOME FUND</B></FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Exact name of registrant as specified in its charter)</FONT></P>

<TABLE WIDTH=60% ALIGN=CENTER>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Delaware</B> </FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>0-18550</B> </FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>61-1146077</B> </FONT></TD></TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(State or other</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Commission file</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(IRS Employer</FONT></TD></TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">jurisdiction of</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">number)</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Identification No.)</FONT></TD></TR>
<TR VALIGN=BOTTOM>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">incorporation)</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>10172 Linn Station Road</B><BR>
<B>Louisville, Kentucky 40223</B><BR>
(Address of principal executive offices)</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>(502) 426-4800</B><BR>
(Registrant&#146;s telephone number, including area code)</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>N/A</B><BR>
(Former name or former address, if changed since last report)</FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check the appropriate box below if
the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:</FONT></P>

<TABLE WIDTH=100%>
<TR>
<TD WIDTH=5%></TD>
<TD WIDTH=95%></TD></TR>
<TR>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[&nbsp;&nbsp; ]</FONT></TD><TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD>
      <TD> </TD></TR>
<TR>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[&nbsp;&nbsp; ]</FONT></TD><TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD>
      <TD> </TD></TR>
<TR>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[&nbsp;&nbsp; ]</FONT></TD><TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></TD></TR>
<TR>
      <TD>&nbsp; </TD>
      <TD> </TD></TR>
<TR>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[&nbsp;&nbsp; ]</FONT></TD><TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></TD></TR>
</TABLE>

<HR SIZE="2" COLOR="BLACK" NOSHADE="NOSHADE">



<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 1; page: 1" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>



<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 1.01. Entry into a
Material Definitive Agreement. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October 23, 2009, NTS/Virginia Development Company (&#147;NTS/VA&#148;), a wholly-owned
subsidiary of NTS Mortgage Income Fund (the &#147;Fund&#148;), executed a promissory note
dated as of October 10, 2009 in favor of Residential Management Company
(&#147;Residential&#148;) in the principal amount of $174,376.24 to evidence advances made
by Residential for payroll billings and overhead fees for Fawn Lake for October 2009.
NTS/VA also executed a promissory note dated as of October 10, 2009 in favor of NTS
Development Company (&#147;Devco&#148;) in the principal amount of $13,514.00 to evidence
advances made by Devco for payroll billings and overhead fees for Fawn Lake for the period
September &#150; October 2009. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to the notes mentioned above, the Fund also executed a promissory note dated as
of October 10, 2009, in favor of Devco in the principal sum of $39,686.05 evidencing
additional advances or loans made by Devco to the Fund for the period September 2009
&#150; October 2009 for payroll billings and overhead fees. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the new promissory notes described above have a maturity date of December 31, 2009 and
contain substantially the same terms and conditions as notes previously issued by the Fund
and its affiliates in return for advances from Residential and Devco, except that the
interest is to be calculated at a fixed rate of interest equal to 5.34% per annum. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on the Fund&#146;s current budget, it is unlikely that the Fund and its subsidiary will
generate sufficient revenue to repay the promissory notes in full on a timely basis. The
Fund intends to seek an extension on the maturity date for the notes or refinance the
unpaid balance prior to the current maturity. There can be no assurance that an acceptable
extension or refinancing of the promissory notes will be achieved prior to maturity, or at
all. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copies
of the newly executed promissory notes are attached to this Current Report on Form 8-K as
Exhibits 10.1, 10.2 and 10.3 and are incorporated in their entirety in this Item 1.01
disclosure by reference. </FONT></P>



<!-- MARKER FORMAT-SHEET="Head Major Left Bold-Arial" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 9.01. Financial
Statements and Exhibits. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Financial
Statements of Businesses Acquired: N/A</FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pro
Forma Financial Information: N/A</FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Shell Company
Transactions: N/A</FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para (List) Hang LV 1-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Exhibits:</U></FONT></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para Large Hang Lv 4-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=6% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.1 </FONT></TD>
<TD WIDTH=84%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Promissory Note dated as of October 10, 2009, made by NTS/Virginia Development Company
payable to NTS Residential Management Company  </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Large Hang Lv 4-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=6% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.2 </FONT></TD>
<TD WIDTH=84%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Promissory Note dated as of October 10, 2009, made by NTS/Virginia Development Company
payable to NTS Development Company </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Large Hang Lv 4-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=6% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.3 </FONT></TD>
<TD WIDTH=84%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Promissory Note dated as of October 10, 2009, made by NTS Mortgage Income Fund payable to
NTS Development Company </FONT></TD>
</TR>
</TABLE>



<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2</FONT></P>
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 2; page: 2" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>



<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 thereunto duly authorized. </FONT></P>
<BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>NTS MORTGAGE INCOME FUND</B></FONT></P>

<IMG SRC="gaw_signature.jpg" HEIGHT="50" WIDTH="175">

<TABLE WIDTH=40%>
<TR>
<TD WIDTH=3%></TD>
<TD WIDTH=37%></TD></TR>
<TR>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:</FONT></TD><TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Gregory A. Wells</FONT></TD></TR>
<TR>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Its:</FONT></TD><TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chief Financial Officer</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD><TD></TD></TR>
<TR>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date:</FONT> </TD><TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date: October 23, 2009</FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></P>


</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "mif_8k10232009.htm", "description": "FORM 8-K", "secsgml_size_bytes": 13600}, {"type": "8-K", "sequence": "6", "filename": "mif_8k10232009.pdf", "description": "FORM 8-K (PDF)", "secsgml_size_bytes": 597526}]
{"company-data": {"conformed-name": "NTS MORTGAGE INCOME FUND", "cik": "0000841942", "assigned-sic": "6798", "irs-number": "611146077", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-18550", "film-number": "091134212"}, "business-address": {"street1": "10172 LINN STATION ROAD", "street2": "SUITE 200", "city": "LOUISVILLE", "state": "KY", "zip": "40223", "phone": "502-426-4800"}, "mail-address": {"street1": "10172 LINN STATION ROAD", "street2": "SUITE 200", "city": "LOUISVILLE", "state": "KY", "zip": "40223"}, "former-company": {"former-conformed-name": "NTS HIGH INCOME FUND", "date-changed": "19890212"}}
8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): October 23, 2009
NTS MORTGAGE INCOME FUND
(Exact name of registrant as specified in its charter)
Delaware
0-18550
61-1146077
(State or other
(Commission file
(IRS Employer
jurisdiction of
number)
Identification No.)
incorporation)
10172 Linn Station Road
Louisville, Kentucky 40223
(Address of principal executive offices)
(502) 426-4800
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if
the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:
[   ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[   ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[   ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[   ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01. Entry into a
Material Definitive Agreement.
On
October 23, 2009, NTS/Virginia Development Company ("NTS/VA"), a wholly-owned
subsidiary of NTS Mortgage Income Fund (the "Fund"), executed a promissory note
dated as of October 10, 2009 in favor of Residential Management Company
("Residential") in the principal amount of $174,376.24 to evidence advances made
by Residential for payroll billings and overhead fees for Fawn Lake for October 2009.
NTS/VA also executed a promissory note dated as of October 10, 2009 in favor of NTS
Development Company ("Devco") in the principal amount of $13,514.00 to evidence
advances made by Devco for payroll billings and overhead fees for Fawn Lake for the period
September – October 2009.
In
addition to the notes mentioned above, the Fund also executed a promissory note dated as
of October 10, 2009, in favor of Devco in the principal sum of $39,686.05 evidencing
additional advances or loans made by Devco to the Fund for the period September 2009
– October 2009 for payroll billings and overhead fees.
All
of the new promissory notes described above have a maturity date of December 31, 2009 and
contain substantially the same terms and conditions as notes previously issued by the Fund
and its affiliates in return for advances from Residential and Devco, except that the
interest is to be calculated at a fixed rate of interest equal to 5.34% per annum.
Based
on the Fund's current budget, it is unlikely that the Fund and its subsidiary will
generate sufficient revenue to repay the promissory notes in full on a timely basis. The
Fund intends to seek an extension on the maturity date for the notes or refinance the
unpaid balance prior to the current maturity. There can be no assurance that an acceptable
extension or refinancing of the promissory notes will be achieved prior to maturity, or at
all.
Copies
of the newly executed promissory notes are attached to this Current Report on Form 8-K as
Exhibits 10.1, 10.2 and 10.3 and are incorporated in their entirety in this Item 1.01
disclosure by reference.
Item 9.01. Financial
Statements and Exhibits.
(a)
Financial
Statements of Businesses Acquired: N/A
(b)
Pro
Forma Financial Information: N/A
(c)
Shell Company
Transactions: N/A
(d)
Exhibits:
10.1
Promissory Note dated as of October 10, 2009, made by NTS/Virginia Development Company
payable to NTS Residential Management Company
10.2
Promissory Note dated as of October 10, 2009, made by NTS/Virginia Development Company
payable to NTS Development Company
10.3
Promissory Note dated as of October 10, 2009, made by NTS Mortgage Income Fund payable to
NTS Development Company
2
SIGNATURES
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 thereunto duly authorized.
NTS MORTGAGE INCOME FUND
By:
Gregory A. Wells
Its:
Chief Financial Officer
Date:
Date: October 23, 2009
3