SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

                                 FORM 12b-25

                         NOTIFICATION OF LATE FILING

            SEC File Number                      CUSIP NUMBER
               0-28764                               None

            (Check One):
       [X] Form 10-K and Form 10-KSB  [ ] Form 11-K  [ ] Form 20-F
               [ ] Form 10-Q and Form 10-QSB  [ ] Form N-SAR

For Period Ended:  December 31, 1997
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[ ]  Transition Report on Form 10-K
[ ]  Transition Report on Form 20-F
[ ]  Transition Report on Form 11-K
[ ]  Transition Report on Form 10-Q
[ ]  Transition Report on Form N-SAR

For the Transition Period Ended:
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Read attached instruction sheet before preparing form.  Please print of type.

   Nothing in this form shall be construed to imply that the Commission has
verified any information contained herein.

   If the notification relates to a portion of the filing checked above,
identify the Item(s) to which the notification relates:  Entire Form
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Part I.  Registrant Information

Full name of registrant  Performance Asset Management Fund III, Ltd., A
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                         California Limited Partnership
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Former name if applicable _____________________________________________

Address of principal executive office (Street and number)
   4100 Newport Place, Suite 400
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City, State and Zip Code  Newport Beach, California 92660
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Part II.  Rule 12b-25 (b) and (c)
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if the subject report could not be filed without unreasonable effort or
expense and the registrant seeks relief pursuant to Rule 12b-25(b), the
following should be completed.  (Check appropriate box.)

[X] (a) The reasons described in reasonable detail in Part III of this
        form could not be eliminated without unreasonable effort or expense;

[X] (b) The subject annual report, semi-annual report, transition report on
        Form 10-K, 20-F, 11-K or Form N-SAR, or portion thereof will be
        filed on or before the 15th calendar day following the prescribed
        date; or the subject quarterly report or transition report on
        Form 10-Q, or portion thereof will be filed on or before the fifth
        calendar day following the prescribed due date; and

[ ] (C) the accountant's statement or other exhibit required by Rule 12b-25
        has been attached if applicable.

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Part III.  Narrative
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   State below in reasonable detail the reasons why Form 10-K, 11-K, 20-F,
10-Q, N-SAR or the transition report or portion thereof could not be filed
within the prescribed time period.  (Attach extra sheets if needed.)

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Part IV.  Other Information
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   (1) Name and telephone number of person to contact in regard to this
       notification
Thomas E. Stepp, Jr.                          714-660-9700
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   (name)                                (Area code) (Telephone number)

   (2) Have all other periodic reports required under Section 13 or 15(d)
of the Securities Exchange Act of 1934 or Section 30 of the Investment
Company Act of 1940 during the preceding 12 months or for such shorter
period that the registrant was required to file such report(s) been filed?
if the answer is no, identify report(s).
                                               [X] Yes   [ ] No
   (3) It is anticipated that any significant change in results of
operations from the corresponding period for the last fiscal year will
be reflected by the earnings statements to be included in the subject
report or portion thereof?
                                               [ ] Yes   [X] No

   If so:  attach an explanation of the anticipated change, both narratively
and quantitatively, and if appropriate, state the reasons why a reasonable
estimate of the results cannot be made.

Performance Asset Management Fund III, Ltd., A California Limited Partnership
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                 (Name of registrant as specified in charter)

Has caused this notification to be signed on its behalf by the undersigned
thereunto duly authorized.

Date:  March 31, 1998               /S/Performance Development, Inc.
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                                     Performance Development, Inc.
                                     a California corporation

                                     Its:  General Partner

                                     By:  /S/ Vincent E. Galewick
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                                        Vincent E. Galewick

                                     Its:  President

Instruction.  The form may be signed by an executive officer of the registrant
or by any other duly authorized representative.  The name and title of the
person signing the form shall be typed or printed beneath the signature.
If the statement is signed on behalf of the registrant by an authorized
representative (other than an execute officer), evidence of the
representative's authority to sign on behalf of the registrant shall be
filed with the form.