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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): February 17, 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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<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>
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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> 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
February 17, 2009, NTS Mortgage Income Fund (the &#147;Fund&#148;) and its wholly-owned
subsidiary, NTS/Virginia Development Company, executed two additional promissory notes
consistent with the terms set forth in a letter (the &#147;Deferral/Advancements
Letter&#148;) dated December 24, 2008 from Residential Management Company, a Kentucky
corporation (&#147;Residential&#148;), and NTS Development Company, a Kentucky corporation
(&#147;Devco&#148; and, collectively with Residential, &#147;NTS&#148;). In the letter NTS
agreed to defer payment of amounts due from the Fund, or its subsidiaries, as of December
31, 2008 and to make advances to the Fund through December 31, 2009 to cover shortfalls in
expenses, except for certain principal repayments due National City Bank and any further
prepayments which may be requested by National City Bank. Pursuant to the
Deferral/Advancements Letter NTS may request deferrals and advances be evidenced by
interest bearing promissory notes, so long as the interest rate charged is equal to
NTS&#146; cost of funds. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Devco
evidenced an advance to the Fund in the amount of Eighteen Thousand Two Hundred Thirty and
65/00 Dollars ($18,230.65) with a promissory note dated as of February 1, 2009. The
advance was to cover payroll and related overhead expenses for the Fund occurring in
January 2009. The note has an interest rate of one month LIBOR plus one and three-quarters
percent (1&frac34; %) per annum. Interest is due monthly and the note matures on December
31, 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;Residential
evidenced an advance to NTS/Virginia Development Company, a Virginia corporation
(&#147;NTS/Virginia&#148;), in the amount of One Hundred Forty Nine Thousand One Hundred
Sixteen and 37/00 Dollars ($149,116.37) with a promissory note dated as of February 1,
2009. The advance was to cover payroll and related overhead expenses for NTS/Virginia
occurring in January 2009. The note has an interest rate of one month LIBOR plus one and
three-quarters percent (1&frac34; %) per annum. Interest is due monthly and the note
matures on December 31, 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;Based
on the Fund&#146;s current budget it is unlikely that the Fund will generate sufficient
revenues to be able to repay the promissory notes, in full, when due. The Fund intends to
seek an extension or renegotiation of the unpaid balances on the promissory notes prior to
their maturity. There can be no assurance that an extension or renegotiation of any of the
promissory notes will be achieved prior to their maturity, or at all. </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 &#150; 10.2 and are incorporated in their entirety in this Item 1.01 disclosure by
reference. </font></p>



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<P Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>2</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>
</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>(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>

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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>
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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>Promissory Note dated as of February 1, 2009 made by NTS<Br>
Mortgage Income Fund payable to NTS Development Company </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;10.2</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Promissory Note dated as of February 1, 2009 made by NTS/Virginia<Br>
Development Company payable to Residential Management Company </FONT></TD>
</TR>
</TABLE>



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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">February 17, 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": "09627336"}, "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): February 17, 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
February 17, 2009, NTS Mortgage Income Fund (the "Fund") and its wholly-owned
subsidiary, NTS/Virginia Development Company, executed two additional promissory notes
consistent with the terms set forth in a letter (the "Deferral/Advancements
Letter") dated December 24, 2008 from Residential Management Company, a Kentucky
corporation ("Residential"), and NTS Development Company, a Kentucky corporation
("Devco" and, collectively with Residential, "NTS"). In the letter NTS
agreed to defer payment of amounts due from the Fund, or its subsidiaries, as of December
31, 2008 and to make advances to the Fund through December 31, 2009 to cover shortfalls in
expenses, except for certain principal repayments due National City Bank and any further
prepayments which may be requested by National City Bank. Pursuant to the
Deferral/Advancements Letter NTS may request deferrals and advances be evidenced by
interest bearing promissory notes, so long as the interest rate charged is equal to
NTS' cost of funds.
Devco
evidenced an advance to the Fund in the amount of Eighteen Thousand Two Hundred Thirty and
65/00 Dollars ($18,230.65) with a promissory note dated as of February 1, 2009. The
advance was to cover payroll and related overhead expenses for the Fund occurring in
January 2009. The note has an interest rate of one month LIBOR plus one and three-quarters
percent (1¾ %) per annum. Interest is due monthly and the note matures on December
31, 2009.
Residential
evidenced an advance to NTS/Virginia Development Company, a Virginia corporation
("NTS/Virginia"), in the amount of One Hundred Forty Nine Thousand One Hundred
Sixteen and 37/00 Dollars ($149,116.37) with a promissory note dated as of February 1,
2009. The advance was to cover payroll and related overhead expenses for NTS/Virginia
occurring in January 2009. The note has an interest rate of one month LIBOR plus one and
three-quarters percent (1¾ %) per annum. Interest is due monthly and the note
matures on December 31, 2009.
Based
on the Fund's current budget it is unlikely that the Fund will generate sufficient
revenues to be able to repay the promissory notes, in full, when due. The Fund intends to
seek an extension or renegotiation of the unpaid balances on the promissory notes prior to
their maturity. There can be no assurance that an extension or renegotiation of any of the
promissory notes will be achieved prior to their maturity, or at all.
Copies
of the executed documentation are attached to this current report on Form 8-K as Exhibits
10.1 – 10.2 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
Promissory Note dated as of February 1, 2009 made by NTS
Mortgage Income Fund payable to NTS Development Company
10.2
Promissory Note dated as of February 1, 2009 made by NTS/Virginia
Development Company payable to Residential Management Company
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:
February 17, 2009
4