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Table of Contents

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

(Mark one)

For the fiscal year ended December 31, 2004

Or

For the transition period from              to             

Commission File Number 333-74817

MAIN PLACE FUNDING, LLC

(Exact name of registrant as specified in its charter)

9 W 57^th Street New York, NY 10019

(Address of principal executive offices) (Zip Code)

(212) 583-8078

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: NONE

Securities registered pursuant to Section 12(g) of the Act: NONE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    Yes  x    No  ¨

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of June 30, 2004, the aggregate market value of the voting and non-voting common equity held by non-affiliates was $0.

On March 31, 2005, there were no shares of common stock outstanding. As of March 31, 2005, Bank of America, N.A. holds 100 percent membership interest in Main Place.

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION I (1) (a) AND (b) OF FORM 10-K AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT PERMITTED BY GENERAL INSTRUCTION I (2) OF THE FORM 10-K.

Documents Incorporated by reference: None

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PART I

Item 1. BUSINESS

General

Main Place Funding, LLC (“Main Place” or “the Company”), a Delaware limited liability company, is a subsidiary of Bank of America, N.A. (the “Parent”), which is a wholly owned indirect subsidiary of Bank of America Corporation (the “Corporation”). On April 28, 1999, BankAmerica Corporation changed its name to Bank of America Corporation. On July 5, 1999, NationsBank, N.A. changed its name to Bank of America, N.A. On July 23, 1999, Bank of America, N.A. merged into Bank of America NT&SA, and the surviving entity of that merger changed its name to Bank of America, N.A.

Main Place is the successor by merger of Main Place Real Estate Investment Trust (“MPREIT”) with and into Main Place. MPREIT was established on October 29, 1996 as a Maryland real estate investment trust to consolidate the acquisition, holding and management of certain closed-end residential mortgage loans owned by certain affiliates of the Corporation. MPREIT was the successor by merger of Main Place Funding Corporation (“MPFC”) with and into MPREIT on November 1, 1996. On October 15, 1998, Main Place Holdings Corporation, the former parent of MPREIT, merged with and into Main Place, and on December 23, 1998, MPREIT merged with and into Main Place, its parent company.

As a result of the December 23, 1998 merger, the Parent held a 99 percent membership interest in Main Place. Main Place Trust, a Delaware business trust, held the other 1 percent membership interest. In connection with the merger of MPREIT with and into Main Place, all outstanding MPREIT Class A Trust Shares were cancelled. All outstanding MPREIT Class B Trust Shares were converted into rights to receive cash. In connection with the merger with MPREIT, Main Place assumed MPREIT’s obligations under the Series 1995-2 and Series 1997-1 mortgage-backed bonds. On August 15, 2002, Main Place Trust was liquidated into the Parent. Currently the Parent holds a 100 percent membership interest in Main Place.

On October 21, 2002, Main Place adopted an Amended and Restated Limited Liability Company Agreement which removed certain restrictions on the business activities of Main Place permitting it to engage in any activity and to exercise any powers permitted to limited liability companies under the laws of the State of Delaware.

Financial Warranty Agreements

Main Place is in the business of entering into financial warranty agreements with third parties. As of December 31, 2004, Main Place was a party to three financial warranty agreements with third-party trusts. These trusts are open-ended diversified, registered investment companies. Under the terms of these warranty agreements, Main Place provides financial warranties in order to ensure that the trusts are able to redeem all of the outstanding shares of specified series on the warranty maturity dates for an amount at least equal to an aggregate protected amount. For each warranty agreement entered into by Main Place with a third party trust, Main Place has also entered into a corresponding financial warranty agreement with the Parent. Under the terms of these agreements, the Parent provides financial warranties in favor of Main Place corresponding to Main Place’s obligations under the financial warranties with the third party trusts.

Main Place’s financial warranties are structured to include investment constraints and certain pre-defined triggers that would require the underlying assets or portfolio of the relevant trust to be liquidated and invested in zero-coupon bonds and/or corporate bonds that mature at a preset future date. Main Place is required to fund any shortfall at the preset future date between the value of the trust’s assets and a preset amount. These financial warranties are recorded as derivatives on the balance sheet and marked to market in the statement of income. As of December 31, 2004, the aggregate net asset value of outstanding shares subject to these financial warranties with third party trusts totaled $523.5 million. Main Place has never made a payment to fund any shortfall amount under these products and management believes that the probability of such a payment under these financial warranties is remote.

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Pioneer Principal Protection Trust Agreement

On October 29, 2002, Main Place entered into a financial warranty agreement with Pioneer Principal Protection Trust on behalf of its series Pioneer Protected Principal Plus Fund and Pioneer Investment Management, Inc. The trust is an open-ended diversified, registered investment company registered under the Investment Company Act of 1940, as amended. Under the terms of the agreement, Main Place provided a financial warranty to the trust in the amount of up to $180.3 million in order to ensure that the trust is able to redeem all of the outstanding shares of the series on the maturity date, as defined in the financial warranty agreement. The last day upon which the financial warranty may be drawn is January 8, 2010.

On December 20, 2002, Main Place entered into a financial warranty agreement with the Parent. Under the terms of this agreement, the Parent provided a financial warranty in favor of Main Place in the amount of up to $180.3 million, corresponding to Main Place’s obligations under the financial warranty in favor of Pioneer Principal Protection Trust on behalf of its series, Pioneer Protected Principal Plus Fund.

Merrill Lynch Principal Protected Trust Agreements

On November 1, 2002, Main Place entered into a financial warranty agreement with Merrill Lynch Principal Protected Trust, on behalf of its series Merrill Lynch Fundamental Growth Principal Protected Fund and Merrill Lynch Investment Managers, L.P. The trust is an open-ended diversified, registered investment company registered under the Investment Company Act of 1940, as amended. Under the terms of the agreement, Main Place provided a financial warranty in the amount of up to $265.9 million in order to ensure that the trust is able to redeem all of the outstanding shares of the series on the maturity date, as defined in the financial warranty agreement. The last day upon which the financial warranty may be drawn is December 1, 2009.

On November 13, 2002, Main Place entered into a financial warranty agreement with the Parent. Under the terms of this agreement, the Parent provided a financial warranty in favor of Main Place in the amount of up to $265.9 million, corresponding to Main Place’s obligations under the financial warranty in favor of Merrill Lynch Principal Protected Trust, on behalf of its series Merrill Lynch Fundamental Growth Principal Protected Fund.

On November 1, 2002, Main Place entered into a second financial warranty agreement with Merrill Lynch Principal Protected Trust, on behalf of its series Merrill Lynch Basic Value Principal Protected Fund and Fund Asset Management, L.P. Under the terms of the agreement, Main Place provided a financial warranty in the amount of up to $335.8 million in order to ensure that the trust is able to redeem all of the outstanding shares of the series on the maturity date, as defined in the financial warranty agreement. The last day upon which the financial warranty may be drawn is December 1, 2009.

On November 13, 2002, Main Place entered into a financial warranty agreement with the Parent. Under the terms of this agreement, the Parent provided a financial warranty in favor of Main Place in the amount of up to $335.8 million, corresponding to Main Place’s obligations under the financial warranty in favor of Merrill Lynch Principal Protected Trust, on behalf of its series Merrill Lynch Basic Value Principal Protected Fund.

Oppenheimer Principal Protected Trust II Agreement and Related Termination

On October 31, 2003, Main Place entered into a financial warranty agreement with Oppenheimer Principal Protected Trust II on behalf of its series, Oppenheimer Principal Protected Main Street Fund II and OppenheimerFunds, Inc. The trust is an open-ended diversified investment company registered under the Investment Company Act of 1940, as amended. Under the terms of the agreement, Main Place committed to provide, upon completion of the Fund’s offering period on February 4, 2004, a financial warranty in the amount of up to $500 million in order to ensure that the trust is able to redeem all of the outstanding shares of the series on the maturity date as defined in the financial warranty agreement, for an amount equal to the aggregate protected amount.

On October 31, 2003, Main Place entered into a financial warranty agreement with the Parent. Under the terms of this agreement, the Parent provided a financial warranty in favor of Main Place in the amount of up to $500 million, corresponding to Main Place’s obligations under the financial warranty in favor of Oppenheimer Principal Protected Trust II on behalf of its series, Oppenheimer Principal Protected Main Street Fund II.

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On January 20, 2004, a termination agreement was entered into among Main Place, the Parent, OppenheimerFunds, Inc and Oppenheimer Principal Protected Trust II on behalf of its series, Oppenheimer Principal Protected Main Street Fund II. Under the terms of the termination agreement, Main Place is no longer committed to provide the financial warranty discussed above. No warranty was issued under the financial warranty agreement, as the Fund’s offering period had not been completed prior to termination. On January 20, 2004, a termination agreement was entered into among Main Place and the Parent. Under the terms of this termination agreement, the Parent is no longer committed to provide the financial warranty discussed above. Consistent with Main Place’s warranty with Oppenheimer Principal Protected Trust II, no warranty was issued under the financial warranty agreement.

Item 2. PROPERTIES

Main Place does not own or lease any physical property and no such property is necessary for the conduct of Main Place’s business.

Item 3. LEGAL PROCEEDINGS

Main Place has no material legal actions or proceedings pending against it.

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Omitted in accordance with General Instruction I (2) (c) to Form 10-K.

PART II

Item 5. MARKET FOR THE REGISTRANTS’ COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

All of Main Place’s membership interests are owned by the Parent, and as a result there is no established public trading market for the stock. Main Place may from time to time make distributions to the Parent. Main Place distributed $7.5 billion in cash and cash equivalents to the Parent in 2003, no distribution was made to the Parent in 2004. There are no limitations on Main Place’s ability to make distributions to Parent contained in its Amended and Restated Limited Liability Company Agreement, the financial warranty agreements, any forms of indebtedness or guarantees, or other agreements.

Main Place does not have any equity compensation plans under which its equity securities are issued. Main Place did not issue or repurchase any of its equity securities during 2004.

Item 6. SELECTED FINANCIAL DATA

Omitted in accordance with General Instruction I (2) (a) to Form 10-K.

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

Main Place’s primary business activity through 2002 was the issuance and sale of mortgage-backed bonds and the acquisition, ownership, holding and pledging of related mortgage notes and other assets serving as collateral in connection therewith. On October 21, 2002, Main Place amended its Limited Liability Company Agreement, which allowed it to enter into financial warranty agreements in favor of third parties and with the Parent during the fourth quarter of 2002. In December 2002, Main Place distributed available-for-sale securities and mortgage loans to the Parent. Main Place’s primary business activity in 2003 and beyond is presently expected to be entering into financial warranty agreements in favor of third parties for a fee. Due to the change in business activities and the distribution of assets to the Parent in 2002, the results in 2002 are not indicative of future results of Main Place, which are expected to reflect only trading account activity from the issuance of financial warranties.

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The results of operations for 2002 reflect Main Place’s operations in its prior line of business for approximately ten months and in its current line of business for approximately two months. However, the financial condition and results of operations for 2003 and 2004 reflect Main Place’s operations in its current line of business for the entire fiscal year. Accordingly, the following discussion of Main Place’s financial condition and results of operation for 2002 is not comparable to 2003 and 2004 and should not be unduly relied upon as an indicator of future performance.

2004 compared to 2003

Total income for the year ended December 31, 2004 was $88.3 million, representing a decrease of $1.7 million compared to 2003. Income for 2004 includes $1.4 million in trading losses and fees related to the financial warranty agreements compared with trading losses of $297 thousand in 2003. The increased trading losses were due to a decrease in the net asset value of the underlying mutual fund series’ covered by the principal protection guarantees.

Total expenses (excluding income taxes) for the year ended December 31, 2004 were $946 thousand, representing an increase of $664 thousand compared to 2003. The increase primarily relates to the termination fee paid by Main Place in connection with the termination of the Oppenheimer guarantee.

Total net income decreased $1.4 million to $56.1 million for the year ended December 31, 2004 from $57.4 million for the year ended December 31, 2003. The decrease in total net income was primarily due to increased trading losses and increased expenses discussed above.

2003 compared to 2002

Total income for the year ended December 31, 2003 was $90.0 million, representing a decrease of $342.8 million compared to 2002. The decrease includes a decline in interest and fees on loans from $174.7 million for the year ended December 31, 2002 to $0 for the year ended December 31, 2003 due to the distribution of the remaining loan portfolio to the Parent on December 20, 2002 in connection with Main Place’s change in business operations. Interest on time deposits placed also declined $124.2 million due mainly to the distribution of $7.5 billion of time deposits to the Parent as a return of capital. Income for 2003 also includes $297 thousand in trading losses and fees related to the financial warranty agreements.

Total expenses (excluding income taxes) for the year ended December 31, 2003 were $282 thousand, representing a decrease of $29.0 million compared to 2002. The decrease primarily relates to a decline in interest expense on long-term debt of $16.1 million, due to Main Place’s repayment of its remaining debt obligation in May 2002.

Total net income was $57.4 million and $258.2 million for the years ended December 31, 2003 and 2002, respectively. The decrease primarily resulted from decreases in interest income, offset by decreases in interest expense and lower operating and tax expenses. The decrease in interest income and decrease in interest expense is due to the change in Main Place’s primary business operations and contributed to a corresponding decrease in tax expense.

Liquidity & Capital Resources

Main Place’s primary source of liquidity is its cash and cash equivalents on hand and interest income thereon. At December 31, 2004, Main Place had approximately $7.0 billion in cash and cash equivalents, which were held as time deposits with the Parent. Main Place holds cash primarily to fund its obligations under its financial warranty agreements, if necessary, and for ongoing operating expense. At December 31, 2004, Main Place’s maximum obligation under the financial warranties was $782.0 million, and the aggregate net asset value of outstanding shares subject to these financial warranties with third party trusts totaled $523.5 million. Main Place has never made a payment to fund any shortfall amount under these products and management believes that the probability of such a payment under these financial warranties is remote.

On February 28, 2003, Main Place made a cash distribution of $7.5 billion to the Parent as a distribution of capital. Main Place may from time to time distribute additional cash or assets to the Parent. There are no limitations on Main Place’s ability to make such distributions.

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Critical Accounting Estimates and Principles

Main Place’s significant accounting principles are described in Note 2 of the financial statements and are essential to understanding Management’s Discussion and Analysis of Financial Condition and Results of Operations. Some of Main Place’s accounting principles require significant judgment to estimate values of either assets or liabilities. In addition, certain accounting principles require significant judgment in applying the accounting principles to individual transactions to determine the most appropriate treatment. We have established procedures and processes to facilitate making the judgments necessary to prepare financial statements.

The following is a summary of the more judgmental and critical accounting estimates and principles. In each area, we have identified the variables most important in the estimation process. Management has used the best information available to make the estimations necessary to value the related assets and liabilities. Actual performance that differs from our estimates and future changes in the key variables could change future valuations and impact net income.

Derivative Assets and Liabilities

Main Place engages in trading-related activities. The management process related to the derivative positions is discussed in detail in the Quantitative and Qualitative Disclosures About Market Risk section in Item 7A. Trading positions recorded on the balance sheet are at fair value.

Income Taxes

Main Place estimates tax expense based on the amount it expects to owe various tax authorities as part of a tax allocation agreement with the Corporation. Taxes are discussed in more detail in Note 8 of the financial statements. Accrued taxes represent the net estimated amount due or to be received from taxing authorities. In estimating accrued taxes, Main Place assesses the relative merits and risks of the appropriate tax treatment of transactions taking into account statutory, judicial and regulatory guidance in the context of its tax position.

Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk Management

Trading profits (losses) and fees represent the amount earned or lost from derivative positions. Derivative positions are marked to market and are recorded based on management’s assessment of market value using market indicators and mathematical models. Trading profits (losses) and fees can be volatile and are largely driven by general market conditions and customer demand. Profit or loss is dependent on the volume and type of transactions, the level of risk assumed, and the volatility of price and rate movements at any given time within the ever-changing market environment.

Main Place has hedged the market risk on the financial warranties by entering into mirror warranties with the Parent. Main Place has determined that the fair value of these derivatives is best modeled as the present value of the fees less expected pay out on the warranties.

There are numerous assumptions and estimates associated with modeling, and actual results could differ. In addition to the regular review of our assumptions, we mitigate these uncertainties through close monitoring and by examining and updating assumptions on an ongoing basis. If the results of our analysis indicate higher than expected levels of risk, proactive measures are taken to adjust risk levels.

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The financial statements required are listed in the Index to Financial Statements and are incorporated herein by reference.

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

There were no changes in or disagreements with accountants on accounting and financial disclosures.

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Item 9A. CONTROLS AND PROCEDURES

Pursuant to Rule 15d-15(b) under the Securities Exchange Act of 1934, Main Place carried out an evaluation, with the participation of Main Place’s management, including Main Place’s President and Principal Financial and Accounting Officer, of the effectiveness of Main Place’s disclosure controls and procedures (as defined under Rule 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, Main Place’s President and Principal Financial and Accounting Officer, concluded that Main Place’s disclosure controls and procedures are effective in recording, processing, summarizing and reporting information required to be disclosed by Main Place, within the time periods specified in the Securities and Exchange Commission’s rules and forms. There has been no change in Main Place’s internal control over financial reporting during the quarter ended December 31, 2004 that has materially affected, or is reasonably likely to materially affect, Main Place’s internal control over financial reporting.

PART III

Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

Omitted in accordance with General Instruction I (2) (c) to Form 10-K.

Item 11. EXECUTIVE COMPENSATION

Omitted in accordance with General Instruction I (2) (c) to Form 10-K.

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Omitted in accordance with General Instruction I (2) (c) to Form 10-K.

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Omitted in accordance with General Instruction I (2) (c) to Form 10-K.

Item 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

During the fiscal years ended December 31, 2003 and 2004, the Company engaged PricewaterhouseCoopers LLP, as an independent registered public accounting firm principally to perform the annual audit and to render other services. The following table lists fees paid to PricewaterhouseCoopers LLP, for services rendered in fiscal years 2003 and 2004.

Audit fees include fees for services performed following the standards of the Public Company Accounting Oversight Board for the recurring audit of Main Place’s financial statements. This category also includes fees for audits provided in connection with statutory filings or services that generally only the principal auditor reasonably can provide to a client, such as procedures related to audit of income tax provisions and related reserves, consents and assistance with and review of documents filed with the Securities and Exchange Commission (SEC).

There were no Audit related, Tax or other related services rendered to Main Place or associated fees paid to PricewaterhouseCoopers LLP in 2004 or 2003.

Main Place’s management, including Main Place’s president and principal financial and accounting officer, has adopted procedures for pre-approving certain audit and non-audit services provided by the independent registered

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public accounting firm. These procedures include reviewing a budget for certain audit and permitted non-audit services. The budget includes a description of, and a budgeted amount for, particular categories of non-audit services that are recurring in nature and therefore anticipated at the time the budget is submitted. Approval from Main Place’s management is required to exceed the budget amount for a particular category of non-audit services and to engage the independent registered public accounting firm for any non-audit services not included in the budget. For both types of pre-approval, Main Place’s management considers whether such services are consistent with the SEC’s rules on auditor independence. Main Place’s management also considers whether the independent registered public accounting firm is best positioned to provide the most effective and efficient service, for reasons such as its familiarity with the Company’s business, people, culture, accounting systems, risk profile, and whether the services enhance the Company’s ability to manage or control risks and improve audit quality.

PART IV

Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

Supplementary Information to be Furnished With Reports filed Pursuant to

Section 15(d) of the Act by Registrants Which Have Not Registered

Securities Pursuant to Section 12 of the Act.

No annual report or proxy materials have been sent to security holders during the fiscal year ended December 31, 2004. No annual report or proxy materials will be sent to security holders subsequent to the filing of this annual report on Form 10-K.

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SIGNATURE

Pursuant to the requirements of Section 13 or 15 (d) 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.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

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MAIN PLACE FUNDING, LLC

INDEX TO FINANCIAL STATEMENTS

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Report of Independent Registered Public Accounting Firm

To the Member of Main Place Funding, LLC:

In our opinion, the accompanying balance sheet and the related statement of income, of changes in member’s equity and of cash flows present fairly, in all material respects, the financial position of Main Place Funding, LLC (the “Company”) at December 31, 2004 and 2003, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2004 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

March 31, 2005

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Main Place Funding, LLC

Statement of Income

(Dollars in Thousands)

See accompanying notes to financial statements.

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Main Place Funding, LLC

Balance Sheet

(Dollars in Thousands)

See accompanying notes to financial statements.

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Main Place Funding, LLC

Statement of Cash Flows

(Dollars in Thousands)

See accompanying notes to financial statements.

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Main Place Funding, LLC

Statement of Changes in Member’s Equity

(Dollars in Thousands)

See accompanying notes to financial statements.

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Notes to Financial Statements

Note 1 – Description of Business

Main Place Funding, LLC (“Main Place”), a Delaware limited liability company, is a subsidiary of Bank of America, N.A. (the “Parent”), which is a wholly owned indirect subsidiary of Bank of America Corporation (the “Corporation”).

Main Place was established originally as a Maryland real estate investment trust to consolidate the acquisition, holding and management of certain closed-end residential mortgage loans owned by certain affiliates of the Corporation. On August 15, 2002, Main Place Trust, a Delaware business trust, was liquidated into the Parent. The Parent holds a 100 percent membership interest in Main Place. Main Place is considered a single-member LLC under current tax law.

On October 21, 2002, Main Place adopted an Amended and Restated Limited Liability Company Agreement which removed certain restrictions on the business activities of Main Place permitting it to engage in any activity and to exercise any powers permitted to limited liability companies under the laws of the State of Delaware.

Under these expanded powers, Main Place has entered into the business of entering into financial warranty agreements in favor of third parties for a fee. As of December 31, 2004, Main Place was a party to three financial warranty agreements with third-party trusts. These trusts are open-ended diversified, registered investment companies. Under the terms of these warranty agreements, Main Place provides financial warranties in order to ensure that the trusts are able to redeem all of the outstanding shares of specified series on the warranty maturity dates for an amount at least equal to an aggregate protected amount. For each of the agreements entered into by Main Place with a third party, Main Place has also entered into a financial warranty agreement with the Parent. Under the terms of these agreements, the Parent provides financial warranties in favor of Main Place corresponding to Main Place’s obligations under the financial warranties with the third parties.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from these estimates. Significant estimates made by management are discussed in these footnotes as applicable.

Recently Issued Accounting Pronouncements

On April 30, 2003, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 149, “Amendment of Statement 133 on Derivative Instruments and Hedging Activities”, (SFAS 149) which is effective for hedging relationships entered into or modified after June 30, 2003. SFAS 149 amends and clarifies financial accounting and reporting for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities under SFAS No. 133 “Accounting for Derivative Instruments and Hedging Activities,” as amended (SFAS 133). The adoption of this rule did not have a material impact on Main Place’s results of operations or financial condition.

Cash and Cash Equivalents

Cash and cash equivalents includes cash on hand, amounts due from affiliated banks and investments in instruments with an original maturity of less than 90 days.

Derivatives

The financial warranty agreements entered into by Main Place meet the definition of derivatives under SFAS 133. All derivatives are recognized on the balance sheet at fair value. Since the derivatives entered into by Main Place are non-exchange traded contracts, fair value is based on a pricing model developed for these instruments. Main Place

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designates a derivative as trading or for hedging purposes when it enters into a derivative contract. Derivatives designated as trading activities are included in Main Place’s trading portfolio with changes in fair value reflected in trading profits and fees. Currently no derivatives are designated for hedging purposes.

Income Taxes

Main Place is classified as a single-member LLC and, as such, is disregarded as an entity separate from its owners for income tax purposes. The predominant practice for single-member LLCs is to provide for income taxes in their separate financial statements. The accompanying financial statements include an income tax provision for the years ended December 31, 2004, 2003 and 2002

(see Note 8).

There are two components of income tax expense: current and deferred. Current income tax expense approximates taxes to be paid or refunded for the applicable period. Balance sheet amounts of deferred taxes are recognized on the temporary differences between the basis of assets and liabilities as measured by tax laws and their basis as reported in the financial statements. Deferred tax expense or benefit is then recognized for the change in deferred tax liabilities or assets between periods. Recognition of deferred tax assets is based on management’s belief that it is more likely than not that the tax benefit associated with certain temporary differences will be recognized. A valuation allowance is recorded for those deferred tax items for which it is more likely than not that realization will not occur.

Main Place’s operating results are included in the consolidated federal income tax return of the Corporation. The method of allocating federal income tax expense is determined under a tax allocation agreement between Main Place and the Corporation. This allocation agreement specifies that income tax expense will be computed for all subsidiaries on a separate company method, taking into account tax planning strategies and the tax position of the consolidated group.

Note 3 – Securities

Gains of approximately $10.4 million were realized on sales of available-for-sale securities during 2002. During the fourth quarter of 2002, Main Place made a fair market value distribution of its remaining securities to the Parent. No gain or loss was recorded on this distribution.

Note 4 – Derivatives – Financial Warranty Agreements

On October 29, 2002, Main Place entered into a financial warranty agreement with Pioneer Principal Protection Trust on behalf of its series Pioneer Protected Principal Plus Fund and Pioneer Investment Management, Inc. The trust is an open-ended diversified, registered investment company registered under the Investment Company Act of 1940, as amended. Under the terms of the agreement, Main Place provided a financial warranty to the trust in the amount of up to $180.3 million in order to ensure that the trust is able to redeem all of the outstanding shares of the series on the maturity date, as defined in the financial warranty agreement. The last day upon which the financial warranty may be drawn is January 8, 2010.

On December 20, 2002, Main Place entered into a financial warranty agreement with the Parent. Under the terms of this agreement, the Parent provided a financial warranty in favor of Main Place in the amount of up to $180.3 million, corresponding to Main Place’s obligations under the financial warranty in favor of Pioneer Principal Protection Trust on behalf of its series, Pioneer Protected Principal Plus Fund.

On November 1, 2002, Main Place entered into a financial warranty agreement with Merrill Lynch Principal Protected Trust, on behalf of its series Merrill Lynch Fundamental Growth Principal Protected Fund and Merrill Lynch Investment Managers, L.P. The trust is an open-ended diversified, registered investment company registered under the Investment Company Act of 1940, as amended. Under the terms of the agreement, Main Place provided a financial warranty in the amount of up to $265.9 million in order to ensure that the trust is able to redeem all of the outstanding shares of the series on the maturity date, as defined in the financial warranty agreement. The last day upon which the financial warranty may be drawn is December 1, 2009.

On November 13, 2002, Main Place entered into a financial warranty agreement with the Parent. Under the terms of this agreement, the Parent provided a financial warranty in favor of Main Place in the amount of up to $265.9 million, corresponding to Main Place’s obligations under the financial warranty in favor of Merrill Lynch Principal Protected Trust, on behalf of its series Merrill Lynch Fundamental Growth Principal Protected Fund.

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On November 1, 2002, Main Place entered into a financial warranty agreement with Merrill Lynch Principal Protected Trust, on behalf of its series Merrill Lynch Basic Value Principal Protected Fund and Fund Asset Management, L.P. The trust is an open-ended diversified, registered investment company registered under the Investment Company Act of 1940, as amended. Under the terms of the agreement, Main Place provided a financial warranty in the amount of up to $335.8 million in order to ensure that the trust is able to redeem all of the outstanding shares of the series on the maturity date, as defined in the financial warranty agreement. The last day upon which the financial warranty may be drawn is December 1, 2009.

On November 13, 2002, Main Place entered into a financial warranty agreement with the Parent. Under the terms of this agreement, the Parent provided a financial warranty in favor of Main Place in the amount of up to $335.8 million, corresponding to Main Place’s obligations under the financial warranty in favor of Merrill Lynch Principal Protected Trust, on behalf of its series Merrill Lynch Basic Value Principal Protected Fund.

On October 31, 2003, Main Place Funding, LLC entered into a financial warranty agreement with Oppenheimer Principal Protected Trust II on behalf of its series, Oppenheimer Principal Protected Main Street Fund II and OppenheimerFunds, Inc. The trust is an open-ended diversified investment company registered under the Investment Company Act of 1940, as amended. Under the terms of the agreement, Main Place Funding, LLC committed to provide, upon completion of the Fund’s offering period on February 4, 2004, a financial warranty in the amount of up to $500 million in order to ensure that the trust is able to redeem all of the outstanding shares of the series on the maturity date as defined in the financial warranty agreement, for an amount equal to the aggregate protected amount. On January 20, 2004, a termination agreement was entered into among Main Place, the Parent, OppenheimerFunds, Inc and Oppenheimer Principal Protected Trust II on behalf of its series, Oppenheimer Principal Protected Main Street Fund II. Under the terms of the termination agreement, Main Place is no longer committed to provide the financial warranty to Oppenheimer Principal Protected Trust II. No warranty was issued under the financial warranty agreement, as the Fund’s offering period had not been completed prior to termination.

On October 31, 2003, Main Place entered into a financial warranty agreement with Bank of America, N.A. Under the terms of this agreement, Bank of America, N.A. provided a financial warranty in favor of Main Place in the amount of up to $500 million, corresponding to Main Place’s obligations under the financial warranty in favor of Oppenheimer Principal Protected Trust II on behalf of its series, Oppenheimer Principal Protected Main Street Fund II. On January 20, 2004, a termination agreement was entered into among Main Place and the Parent. Under the terms of this termination agreement, the Parent is no longer committed to provide the financial warranty discussed above. Consistent with Main Place’s warranty with Oppenheimer Principal Protected Trust II, no warranty was issued under the financial warranty agreement.

Main Place structures these financial warranties to include investment constraints and certain pre-defined triggers that would require the underlying assets or portfolio of the relevant trust to be liquidated and invested in zero-coupon bonds that mature at a preset future date. Main Place is required to fund any shortfall at the preset future date between the value of the trust’s assets and a preset amount. These financial warranties are booked as derivatives and marked to market in the trading portfolio. As of December 31, 2004 the aggregate net asset value of outstanding shares subject to these financial warranties with third party trusts totaled $523.5 million. Main Place has never made a payment to fund any shortfall amount under these products and management believes that the probability of such a payment under these financial warranties is remote.

Note 5 - Loans

In December 2002, Main Place distributed mortgage loans to the Parent due to the change in Main Place’s business operations. Main Place did not hold any loans on its balance sheet during the years ending December 31, 2003 and 2004.

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Note 6 - Affiliate Transactions

Main Place maintains its cash and cash equivalent accounts with the Parent. Main Place had $7.0 billion and $6.9 billion of time deposits placed with the Parent at December 31, 2004 and 2003, respectively. Interest income on time deposits placed with the Parent for the years ended December 31, 2004, 2003 and 2002 was $89.7 million, $90.3 million and $214.6 million, respectively. On February 28, 2003, Main Place distributed $7.5 billion of these time deposits to the Parent as a return of capital.

Accounts receivable from affiliates as of December 31, 2003 was $4.2 million. The receivable was settled during January 2004.

The Parent absorbs substantially all general and administrative expenses incurred by the Company, including but not limited to compensation and incentive benefits and office overhead. The Parent charged the Company a management fee of $100 thousand in both 2004 and 2003, these amounts are included in other general and operating expenses.

As described more fully in Note 4, the Parent has entered into financial warranty agreements with Main Place. Under the terms of these agreements, the Parent provides financial warranties in favor of Main Place, where the maximum obligation under the financial warranties is $782.0 million, which corresponds with Main Place’s obligations under financial warranty agreements in favor of third parties.

On December 20, 2002, Main Place terminated its securities sold under agreements to repurchase transactions in conjunction with the distribution of its remaining securities portfolio to the Parent. Interest expense on these securities for the year ended December 31, 2002 was $5.0 million.

Main Place has previously entered into agreements with the Parent for the servicing and administration of its mortgage loan portfolio. Servicing fees paid to the Parent approximated $8.5 million for the year ended December 31, 2002, and are included in other general and operating expenses on the accompanying statement of income. Servicing fees are based on actual collections on loans.

Accrued expenses due to affiliates at December 31, 2004 and 2003 were $64.7 million and $28.9 million, respectively.

Main Place had no short-term borrowings as of December 31, 2004. Short-term borrowings consisted of short-term bank loans outstanding of $5.4 million at December 31, 2003.

During the year ended December 31, 2002, Main Place sold $2.8 billion of mortgage loans to the Parent. There were no gains or losses on sales of loans in 2002.

Main Place purchased $855 thousand of available-for-sale securities from the Parent during 2002. There were no securities purchased from the Parent during the years ended December 31, 2004 and 2003.

Main Place distributed loans and available-for-sale securities to the Parent on December 20, 2002. As these were equity distributions, no gains or losses were recognized on these transactions.

Note 7 - Long-Term Debt

On May 28, 2002 Main Place repaid its remaining obligations of $1.5 billion on the Series 1999-1 mortgage-backed bonds. There were no additional bonds outstanding as of December 31, 2004 and 2003.

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Note 8 - Income Taxes

The components of income tax for the years ended December 31, 2004, 2003 and 2002 are as follows (dollars in thousands):

A reconciliation of the expected federal income tax expense using the federal statutory rate of 35 percent to the actual income tax expense for the years ended December 31, 2004, 2003 and 2002, is as follows (dollars in thousands):

Main Place had no deferred tax assets or liabilities at December 31, 2004 and 2003.

Current federal taxes payable to the Corporation, inclusive of current state taxes payable to the Parent, was approximately $64 million and $29 million at December 31, 2004 and 2003, respectively, which are included in accrued expenses due to affiliates on the accompanying balance sheet.

Note 9 - Fair Values of Financial Instruments

Statement of Financial Accounting Standards No. 107, “Disclosures About Fair Value of Financial Instruments,” requires the disclosure of the estimated fair values of financial instruments. The fair value of an instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Quoted market prices, if available, are utilized as estimates of the fair values of financial instruments. Fair values of items for which no quoted market prices exist have been derived based on management’s assumptions, the estimated amount and timing of future cash flows and estimated discount rates. The estimation methods for individual classifications of financial instruments are more fully described below. Different assumptions could significantly affect these estimates. Accordingly, the net realizable values could be materially different from the estimates presented below. In addition, the estimates are only indicative of individual instruments’ values and should not be considered an indication of the fair value of Main Place.

Short-Term Financial Instruments

The carrying value of short-term financial instruments, including cash and cash equivalents, accounts receivable from and accrued expenses due to affiliates, short term borrowings and interest receivable approximates the fair value. These financial instruments generally expose Main Place to limited credit risk, have no stated maturities or have maturities of less than 90 days and carry interest rates, which approximate market.

Derivatives

All derivatives are recognized on the balance sheet at fair value.

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Main Place Funding, LLC

Form 10-K

Index to Exhibits

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