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<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, DC 20549</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>FORM 8-K<BR>
CURRENT REPORT</FONT></H1>


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<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>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date
of Report (Date of earliest event reported): August 18, 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>

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<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>
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<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>

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<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>

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<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>

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<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>

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<TR>
<TD WIDTH=5%></TD>
<TD WIDTH=95%></TD></TR>
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<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><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><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><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>
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<H1 Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>Item 1.01. Entry into a
Material Definitive Agreement. </font></h1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
August 18, 2009, NTS/Virginia Development Company (&#147;NTS/Virginia&#148;) and NTS/Lake
Forest II Residential Corporation (&#147;NTS/Lake Forest II&#148;), both wholly owned
subsidiaries of the NTS Mortgage Income Fund (the &#147;Fund&#148;), entered into a
development loan disbursing agreement (&#147;Section 21A Loan&#148;) with National City
Bank (&#147;NCB&#148;) for the purpose of providing funds to develop Section 21A of the
Fawn Lake Subdivision. The Section 21A Loan is in the amount of $1,385,544, and is
evidenced by a Promissory Note dated August 18, 2009. The Fund, as well as its Chairman
and one of its affiliates, have guaranteed the payment of the Section 21A Loan, which
matures on September 1, 2010. The Section 21A Loan requires that interest be paid monthly.
In addition, upon the sale of a lot in Section 21A of Fawn Lake, NCB shall be entitled to
receive as a principal paydown the greater of (i) 100% of the net sales proceeds per lot,
or (ii) $150,000 per lot. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
August 18, 2009, the Fund entered into a Seventh Mortgage Loan Modification Agreement (the
&#147;Agreement&#148;) with NCB for the purpose of modifying the existing development loan
(&#147;Master Loan&#148;) on the Fawn Lake project. Pursuant to the terms of the
Agreement, NCB (i) waived the requirement of the $2.0 million principal repayment under
the Sixth Amended and Restated Promissory Note to the Master Loan dated September 1, 2008,
(ii) extended the maturity date of the Master Loan to September 1, 2010, (iii) increased
the interest rate payable on the Master Loan to the greater of (a) One Month Libor plus
four percent (4%) or (b) six percent (6%), (iv) amended the release prices of the real
property securing the payment of the Master Loan, and (v) added $1.0 million of
availability under the Master Loan to fund overhead expenses of the Fawn Lake development,
which shall be the lesser of (a) $100,000 per month, or (b) fifty percent (50%) of the
actual expense. In exchange for these modifications, NTS/Virginia, NTS/Lake Forest II, and
a joint venture in which the Fund is the fifty percent (50%) joint venture owner, pledged
additional collateral as security for the repayment of the Master Loan. In addition, the
Master Loan and the Section 21A Loan were cross-defaulted and cross-collateralized. The
note evidencing the Master Loan was amended and restated in its entirety as the Seventh
Amended and Restated Promissory Note Construction Mortgage Loan dated August 18, 2009. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copies
of the executed documentation are attached to this Current Report on Form 8-K as Exhibits
10.1, 10.2, 10.3, 10.4, 10.5 and 10.6 and are incorporated in their entirety in this Item
1.01 disclosure by reference. </FONT></P>



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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 9.01. Financial
Statements and Exhibits. </FONT></H1>

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<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>
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<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>
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<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>

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<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>
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<TD WIDTH=10><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;10.1</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Development Loan Disbursing Agreement </FONT></TD>
</TR>
</TABLE>


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<TD WIDTH=10><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;10.2</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Promissory Note </FONT></TD>
</TR>
</TABLE>


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<TD WIDTH=10><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;10.3</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unconditional and Continuing Guaranty by NTS Guaranty Corporation </FONT></TD>
</TR>
</TABLE>


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<TD WIDTH=10><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;10.4</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unconditional and Continuing Guaranty by J.D. Nichols and NTS Mortgage Income Fund </FONT></TD>
</TR>
</TABLE>


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<TD WIDTH=10><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;10.5</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Seventh Mortgage Loan Modification Agreement </FONT></TD>
</TR>
</TABLE>


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<TD WIDTH=10><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;10.6</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Seventh Amended and Restated Promissory Note Construction Mortgage Loan </FONT></TD>
</TR>
</TABLE>
<Br>



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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES </FONT></H1>

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<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">

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<TD WIDTH=3%></TD>
<TD WIDTH=37%></TD></TR>
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<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">August 24, 2009</FONT></TD></TR>
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{"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": "091032301"}, "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, DC 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): August 18, 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
August 18, 2009, NTS/Virginia Development Company ("NTS/Virginia") and NTS/Lake
Forest II Residential Corporation ("NTS/Lake Forest II"), both wholly owned
subsidiaries of the NTS Mortgage Income Fund (the "Fund"), entered into a
development loan disbursing agreement ("Section 21A Loan") with National City
Bank ("NCB") for the purpose of providing funds to develop Section 21A of the
Fawn Lake Subdivision. The Section 21A Loan is in the amount of $1,385,544, and is
evidenced by a Promissory Note dated August 18, 2009. The Fund, as well as its Chairman
and one of its affiliates, have guaranteed the payment of the Section 21A Loan, which
matures on September 1, 2010. The Section 21A Loan requires that interest be paid monthly.
In addition, upon the sale of a lot in Section 21A of Fawn Lake, NCB shall be entitled to
receive as a principal paydown the greater of (i) 100% of the net sales proceeds per lot,
or (ii) $150,000 per lot.
On
August 18, 2009, the Fund entered into a Seventh Mortgage Loan Modification Agreement (the
"Agreement") with NCB for the purpose of modifying the existing development loan
("Master Loan") on the Fawn Lake project. Pursuant to the terms of the
Agreement, NCB (i) waived the requirement of the $2.0 million principal repayment under
the Sixth Amended and Restated Promissory Note to the Master Loan dated September 1, 2008,
(ii) extended the maturity date of the Master Loan to September 1, 2010, (iii) increased
the interest rate payable on the Master Loan to the greater of (a) One Month Libor plus
four percent (4%) or (b) six percent (6%), (iv) amended the release prices of the real
property securing the payment of the Master Loan, and (v) added $1.0 million of
availability under the Master Loan to fund overhead expenses of the Fawn Lake development,
which shall be the lesser of (a) $100,000 per month, or (b) fifty percent (50%) of the
actual expense. In exchange for these modifications, NTS/Virginia, NTS/Lake Forest II, and
a joint venture in which the Fund is the fifty percent (50%) joint venture owner, pledged
additional collateral as security for the repayment of the Master Loan. In addition, the
Master Loan and the Section 21A Loan were cross-defaulted and cross-collateralized. The
note evidencing the Master Loan was amended and restated in its entirety as the Seventh
Amended and Restated Promissory Note Construction Mortgage Loan dated August 18, 2009.
Copies
of the executed documentation are attached to this Current Report on Form 8-K as Exhibits
10.1, 10.2, 10.3, 10.4, 10.5 and 10.6 and are incorporated in their entirety in this Item
1.01 disclosure by reference.
2
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
Development Loan Disbursing Agreement
10.2
Promissory Note
10.3
Unconditional and Continuing Guaranty by NTS Guaranty Corporation
10.4
Unconditional and Continuing Guaranty by J.D. Nichols and NTS Mortgage Income Fund
10.5
Seventh Mortgage Loan Modification Agreement
10.6
Seventh Amended and Restated Promissory Note Construction Mortgage Loan
3
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:
August 24, 2009
4