10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

x	Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2010
o	Transition Report Pursuant to 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period of              to             

Commission File Number 0-7865.

SECURITY LAND AND DEVELOPMENT CORPORATION

(Exact name of issuer as specified in its charter)

Georgia	58-1088232
(State or other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

2816 Washington Road, #103, Augusta, Georgia 30909

(Address of Principal Executive Offices)

Issuers Telephone Number (706) 736-6334

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Year)

Check whether the Issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes o  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o	Smaller reporting company x
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  o Yes  x No

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date.

Class	Outstanding at August 5, 2010
Common Stock, $0.10 Par Value	5,243,107 shares

SECURITY LAND AND DEVELOPMENT CORPORATION

AND SUBSIDIARIES

Form 10-Q

Index

Part I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets as of June 30, 2010 and September 30, 2009	1
	Consolidated Statements of Income and Retained Earnings for the Three Month Period Ended and the Nine Month Period Ended June 30, 2010 and 2009	2
	Condensed Consolidated Statements of Cash Flows for the Three Month Period Ended and the Nine Month Period Ended June 30, 2010 and 2009	3
	Notes to the Consolidated Financial Statements	4-7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	7-8
Item 3.	Quantitative and Qualitative Disclosures About Market Risks	8
Item 4.	Controls and Procedures	8-9
Part II	OTHER INFORMATION	9
Item 1.	Legal Proceedings	9
Item 1A.	Risk Factors	9
Item 2.	Unregistered Sales of Equity Securities and use of Proceeds	9
Item 3.	Defaults Upon Senior Securities	9
Item 4.	Submission of Matters to a Vote of Security Holders	9
Item 5.	Other Information	9
Item 6.	Exhibits and Reports on Form 8-K	10
	SIGNATURES	11

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

SECURITY LAND AND DEVELOPMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	June 30,		September 30,
	2010		2009
	(unaudited)
ASSETS
CURRENT ASSETS
Cash	$	20,498	$	33,724
Receivables from tenants	238,461		249,850
Prepaid salaries	—		3,614
Total current assets	258,959		287,188
INVESTMENT PROPERTIES
Investment properties for lease, net of accumulated depreciation	5,864,224		5,957,356
Land and improvements held for investment or development	3,641,098		3,641,098
	9,505,322		9,598,454
OTHER ASSETS	91,314		96,245
	$	9,855,595	$	9,981,887
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	186,674	$	243,298
Income taxes payable	38,665		67,486
Current maturities of notes payable and line of credit	761,636		680,268
Current portion of deferred revenue	24,652		24,652
Total current liabilities	1,011,627		1,015,704
LONG-TERM LIABILITIES
Notes payable, less current portion	4,000,142		4,349,265
Deferred income taxes	488,841		483,382
Deferred revenue, less current portion	96,538		115,027
Total long-term liabilities	4,585,521		4,947,674
Total liabilities	5,597,148		5,963,378
STOCKHOLDERS’ EQUITY
Common stock, par value $.10 per share; 30,000,000 shares authorized; 5,243,107 shares issued and outstanding	524,311		524,311
Additional paid-in capital	333,216		333,216
Retained earnings	3,400,920		3,160,982
Total equity	4,258,447		4,018,509
	$	9,855,595	$	9,981,887

The accompanying notes are an integral part of these consolidated financial statements.

1

SECURITY LAND AND DEVELOPMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS

	For the Three Month						For the Nine Month
	Period Ended June 30,						Period Ended June 30,
	2010			2009			2010			2009
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
OPERATING REVENUE
Rent revenue	$	353,227		$	365,210		$	1,086,099		$	1,071,473
OPERATING EXPENSES
Depreciation and amortization	32,688			32,300			98,064			96,195
Property taxes	67,645			65,366			204,673			201,202
Payroll and related costs	21,063			16,589			56,818			48,302
Insurance and utilities	10,437			10,726			31,540			30,962
Repairs and maintenance	4,347			11,763			24,912			43,208
Professional services	2,800			4,814			36,453			35,875
Write off of accounts receivable	8,015			—			8,015			—
Other	911			33			2,652			858
	147,906			141,591			463,127			456,602
Operating income	205,321			223,619			622,972			614,871
OTHER INCOME (EXPENSE)
Interest	(80,838		)	(90,776		)	(246,298		)	(276,221		)
Other income	—			2			51			818
	(80,838		)	(90,774		)	(246,247		)	(275,403		)
Income before income taxes	124,483			132,845			376,725			339,468
INCOME TAXES PROVISION	46,092			48,630			136,787			117,470
Net income	78,391			84,215			239,938			221,998
RETAINED EARNINGS, BEGINNING OF PERIOD	3,322,529			2,911,324			3,160,982			2,773,541
RETAINED EARNINGS, END OF PERIOD	$	3,400,920		$	2,995,539		$	3,400,920		$	2,995,539
PER SHARE DATA
Net income per common share	$	0.01		$	0.02		$	0.05		$	0.04

The accompanying notes are an integral part of these consolidated financial statements.

2

SECURITY LAND AND DEVELOPMENT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the Three Month						For the Nine Month
	Period Ended June 30,						Period Ended June 30,
	2010			2009			2010			2009
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
OPERATING ACTIVITIES
Net income	$	78,391		$	84,215		$	239,938		$	221,998
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	32,688			32,300			98,064			96,195
Changes in deferred and accrued amounts:	9,626			(12,060		)	(83,472		)	(69,401		)
Net cash provided by operating activities	120,705			104,455			254,530			248,792
INVESTING ACTIVITIES
Proceeds from the sale of investments	—			—			—			250,000
FINANCING ACTIVITIES
Repayments to shareholder	(10,500		)	—			—			—
Principal payments on notes payable and line of credit, net	(110,273		)	(104,848		)	(267,756		)	(492,872		)
Net cash used in financing activities	(120,773		)	(104,848		)	(267,756		)	(492,872		)
Net increase (decrease) in cash	(68		)	(393		)	(13,226		)	5,920
CASH, BEGINNING OF PERIOD	20,566			31,077			33,724			24,764
CASH, END OF PERIOD	$	20,498		$	30,684		$	20,498		$	30,684
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$	80,838		$	90,776		$	246,298		$	276,221
Cash paid for income taxes	$	35,000		$	40,170		$	95,420		$	91,532

The accompanying notes are an integral part of these consolidated financial statements.

3

SECURITY LAND AND DEVELOPMENT CORPORATION

AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Note  1 — Basis of Presentation

The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and accounting principles generally accepted in the United States of America; therefore, they do not include all disclosures necessary for a complete presentation of financial condition, results of operations, and cash flows.  Such statements are unaudited but, in the opinion of management, reflect all adjustments, which are of a normal recurring nature and necessary for a fair presentation of results for the selected interim periods.  Users of financial information produced for interim periods are encouraged to refer to the footnotes contained in the audited financial statements appearing in our Form 10-K for the year ended September 30, 2009 when reviewing interim financial statements.

The financial statements include estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  The consolidated financial statements include the accounts of Security Land and Development Corporation and its four wholly owned subsidiaries, Royal Palms Motel, Inc., SLDC, LLC, SLDC 2, LLC and SLDC III, LLC (described on a consolidated basis as the “Company”).  Significant intercompany transactions and accounts are eliminated in consolidation.

Critical Accounting Policies:

Estimates of Useful Lives of Investment Properties for Purposes of Depreciation

Management has estimated useful lives of investment properties, except for land, that are leased, and the Company utilizes the straight-line method to compute depreciation over the estimated useful lives of the investment properties.  Actual depreciation of investment properties will vary from management’s estimates, and the value of investment properties is more directly impacted by market conditions and the physical condition of the investment properties.

Evaluation of Long-Lived Assets for Impairment

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of investment properties may not be recoverable.  In evaluating recoverability, the Company generally estimates future cash flows expected to result from the use of the asset and its eventual disposition.  An impairment loss is recognized when the expected future cash flows of the asset are less than the carrying amount.

Estimates of Income Tax Rates Applicable to Deferred Taxes

The Company has deferred income taxes through a series of tax-deferred like-kind exchange transactions on certain investment properties and through accelerated depreciation elections on certain other assets.  Actual income taxes that may become due when taxable gains are realized on the sale of assets may differ from management’s estimates as a result of changes in tax laws, the tax status of the Company, or the actual taxable earnings of the Company in the periods the deferred income taxes become due.

Refer to the Company’s Form 10-K for the year ended September 30, 2009 for further information regarding its critical accounting policies.

4

Note  2 — Investment Properties

Investment properties leased or held for lease to others under operating leases consisted of the following at June 30, 2010 and September 30, 2009:

	June 30,			September 30,
	2010			2009
	(unaudited)
National Plaza building, land and improvements	$	5,136,296		$	5,136,296
Evans Ground Lease, land and improvements	2,430,373			2,430,373
Commercial land and improvements	3,641,098			3,641,098
	11,207,767			11,207,767
Less accumulated depreciation	(1,826,322		)	(1,735,224		)
	9,381,445			9,472,543
Residential rental property	145,847			145,847
Less accumulated depreciation	(21,970		)	(19,936		)
	123,877			125,911
Investment properties for lease, net of accumulated depreciation	$	9,505,322		$	9,598,454

Depreciation expense totaled $31,044 and $93,132 for both the three-month and nine-month periods ended June 30, 2010 and 2009.

The National Plaza is a retail strip center located on Washington Road in Augusta, Georgia.  Approximately 81% of the rentable space at the National Plaza is leased to Publix Supermarkets, Inc., the National Plaza’s anchor tenant.

The Company entered into a long-term ground lease with a major national tenant and its developer in May 2006 on approximately 18 acres of land in Columbia County, Georgia.  The agreement required monthly rental payments of $20,833 during the development period, which was completed in January 2007.  Following the expiration of the development period, the lease requires annual rental payments of $500,000 for the first 5 years then increasing 5% in years 6, 11, and 16.  The lessee has an option to renew at year 21 and another option every 5 years thereafter for a possible total lease term of 50 years.  The lease provides for the tenant to pay for insurance and property taxes. The Company is recognizing rents on a straight-line basis over the lease term.

The Company holds several parcels of land for investment or development purposes, including 19.38 acres of land in North Augusta, South Carolina, purchased in parcels during 2007 and 2008.  The Company also owns approximately 85 acres of land in south Richmond County, Georgia and a 1.1 acre parcel along Washington Road in Augusta, Georgia that adjoins the Company’s National Plaza investment property.  The aggregate costs of these investment properties held for investment or development was $3,641,098 at June 30, 2010 and September 30, 2009.

Refer to the Company’s Form 10-K for the year ended September 30, 2009, for further information on operating lease agreements and land held for investment or development purposes.

5

Note  3 — Notes Payable and Line of Credit

Notes payable and line of credit consisted of the following at:

	June 30, 2010			September 30, 2009
	(unaudited)
A note payable to the seller of approximately 2.81 acres of land in North Augusta, South Carolina, collateralized by the land. The note is payable in monthly installments of $7,182 through June 2013, and bears interest at a fixed rate of 6%.	$	236,084		$	288,773
A note payable to an insurance company, secured with a mortgage interest in National Plaza and an assignment of rents. The note is payable in monthly installments of $35,633, including interest, through June 2015, and bears interest at a fixed rate of 7.875%.	1,762,566			1,972,223
A note payable to an insurance company collateralized with approximately 18 acres of land in Columbia County, Georgia, and an assignment of the long-term ground lease. The note is payable in monthly installments of $19,137, including interest, through May 1, 2027, and bears interest at a fixed rate of 5.85%.	2,462,878			2,525,518
	4,461,528			4,786,514
Less current maturities	(461,386		)	(437,249		)
	$	4,000,142		$	4,349,265
A line of credit with a regional financial institution for up to $251,934 procured in March 2008 with a floating interest rate based on prime and originally payable in full in April 2009. In April 2009 the Company refinanced the $243,019 line of credit with the same regional financial institution to borrow the outstanding balance of $243,019, bearing interest based on the greater of prime or 6% with interest payments due monthly, maturing in April 2010. The line of credit was increased to $300,250 in January 2010 and its maturity was extended to February 2011.	$	300,250		$	243,019

Management of the Company expects future liquidity needs of the Company to be funded from rent revenues, refinancing and the appreciation in investment properties (which can be sold or mortgaged, if necessary).

Current maturities of notes payable will require the Company to make payments over the next 12 months totaling $461,386.  The Company projects that it will be able to fund the payment of its current maturities of notes payable through cash flows generated from its operations and cash on hand, but there can be no assurance that this will occur.

In addition, the Company’s line of credit of $300,250 at June 30, 2010 was refinanced in January 2010 and is due to be repaid in February 2011.  The Company expects to extend the maturity date of the line of credit through refinancing upon its maturity in 2011.  Although the Company expects to secure this refinancing prior to the maturity of the line of credit, there can be no assurances that such refinancing will be secured or that such refinancing will be on terms acceptable to the Company.

If the Company is unsuccessful in either of their efforts described above, the Company intends to seek additional financing or sell certain of its assets.

6

Note  4 — Concentrations

Substantially all of the Company’s assets consist of real estate located in Richmond and Columbia Counties in the state of Georgia and in North Augusta, South Carolina.  Approximately 99% of the Company’s revenues are earned from two of the Company’s investment properties, National Plaza and the Evans Ground Lease, which comprise approximately 54% and 46% of the Company’s revenues, respectively.   The anchor tenant for National Plaza, Publix Supermarkets, Inc. (“Publix”), a regional food supermarket chain, leases approximately 81% of the space at National Plaza.  The Company generates approximately 39% of its revenues though its lease with Publix.

Item  2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations:

The Company’s results of operations for the nine months ended June 30, 2010, and a comparative analysis of the same period for 2009 are presented below:

					Increase (Decrease)
					2010 compared to 2009
	2010		2009		Amount			Percent
Rent revenue	$	1,086,099	$	1,071,473	$	14,626		1	%
Operating expenses	463,127		456,602		6,525			1	%
Interest expense	246,298		276,221		(29,923		)	-11	%
Income tax expense	136,787		117,470		19,317			16	%
Net income	239,938		221,998		17,940			8	%

Rent revenue consists primarily of rent revenue from the Company’s National Plaza, a strip center on Washington Road in Augusta, Georgia, and the Evans Ground Lease in Evans, Georgia.  The Company also earned rent revenue from a ground lease with an auto-repair service operation on an out parcel of National Plaza.

Refer to the Company’s Form 10-K for the year ended September 30, 2009 for further information regarding the properties owned and their lease terms.

Total operating expenses for the nine months ended June 30, 2010 were consistent with operating costs compared to the same period for 2009.  Management expects operating expenses for the remainder of the current fiscal year to be comparable to the current operating period.

Interest expense for the nine month period ended June 30, 2010 decreased compared to 2009 due to the decrease in debt due to scheduled principle payments and the easement sale of a portion of the land containing the Evans Ground Lease.  A portion of the proceeds from the easement sale were used to pay down debt collateralized by the Evans Ground Lease and related property.

Income tax expense for the nine month period ended June 30, 2010 increased as the Company’s net income increased due to decreased interest expense noted above.

7

Liquidity and Sources of Capital:

The Company’s ratio of current assets to current liabilities at June 30, 2010 was 26%.  The ratio was 28% at September 30, 2009.

Management of the Company expects future liquidity needs of the Company to be funded from rent revenues, refinancing and the appreciation in investment properties (which can be sold or mortgaged, if necessary).

Current maturities of notes payable will require the Company to make payments over the next 12 months totaling $461,386.  The Company projects that it will be able to fund the payment of its current maturities of notes payable through cash flows generated from its operations and cash on hand, but there can be no assurance that this will occur.

In addition the Company’s line of credit was $300,250 at June 30, 2010 is due to be repaid in February 2011.  The Company expects to extend the maturity date of the line of credit through refinancing upon its maturity in 2011.  Although the Company expects to secure this refinancing prior to the maturity of the line of credit, there can be no assurances that such refinancing will be secured or that such refinancing will be on the terms acceptable to the Company.

If the Company is unsuccessful in either of their efforts described above, the Company intends to seek additional financing or sell certain of its assets.

Cautionary Note Regarding Forward-Looking Statements:

The results of operations for the nine-month period ended June 30, 2010 are not necessarily indicative of the results that may be expected for the entire fiscal year.  The Company may, from time to time, make written or oral forward-looking statements, including statements contained in the Company’s filings with the Securities and Exchange Commission (the “Commission”) and its reports to stockholders.  Such forward-looking statements are made based on management’s belief as well as assumptions made by, and information currently available to, management pursuant to “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  The Company’s actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, but not limited to, competition from other real estate companies, the ability of the Company to obtain financing for projects, and the continuing operations of tenants.

Item  3. Quantitative and Qualitative Disclosures About Market Risks

Not applicable to smaller reporting companies

Item  4. Controls and Procedures

(a)Within the 90 days prior to the filing date of this report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934.  Based upon that evaluation, the Company’s Chief Executive Officer concluded that the Company’s disclosure controls and procedures were effective.

(b)There were no significant changes in the Company’s internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date the Chief Executive Officer carried out the evaluation.

8

Item  4T. Controls and Procedures

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in the Exchange Act Rules 13a-15(f).  A system of internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

As of September 30, 2009, the Company’s management evaluated the effectiveness of its internal control.  Based on the evaluation, the Company’s management concluded that the Company’s internal control over financial reporting was ineffective as of September 30, 2009 and identified a material weakness related to the lack of segregation of duties, accounting personnel with the requisite knowledge of GAAP and the lack of written policies and procedures over financial reporting.

Notwithstanding the existence of this material weakness in our internal control over financial reporting, our management believes that the consolidated financial statements included in its reports fairly present in all material respects the Company’s financial condition, results of operations and cash flows for the periods presented.

There has been no change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

Item  1. Legal Proceedings

None

Item  1A. Risk Factors

No updates

Item  2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Item  3. Defaults Upon Senior Securities

None

Item  4. Submission of Matters to a Vote of Security Holders

None

Item  5. Other Information

Management of the Company notes that no Forms 8-K was filed during the period and Management is not aware of any un-reported matters occurring during the period that would require disclosure in a Form 8-K.

9

Item  6. Exhibits and Reports on Form 8-K

(a)	Exhibit No.	Description
	31.1	Certification Pursuant to Section 302 of Sarbanes-Oxley Act of 2002
	32.1	Certification Pursuant to Section 906 of Sarbanes-Oxley Act of 2002
(b)	No reports on Form 8-K were filed during the nine-months ended June 30, 2010.

10

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SECURITY LAND AND DEVELOPMENT CORPORATION

(Registrant)

By:	/s/ T. Greenlee Flanagin	August 11, 2010
	T. Greenlee Flanagin	Date
	President
	Chief Executive Officer and Chief Financial Officer

11

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, T. Greenlee Flanagin, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Security Land and Development Corporation;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and  have:

a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;  and

d)  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors.

a)  all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information.

b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 11, 2010

/s/ T. Greenlee Flanagin

T. Greenlee Flanagin

President and Chief Executive Officer and

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Security Land and Development Corporation (the “Company”) on Form 10-Q for the quarter ended June 30, 2010 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, T. Greenlee Flanagin, President and Chief Executive Officer of the Company, does hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

	(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
	(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
By:
	/s/ T. Greenlee Flanagin
	T. Greenlee Flanagin
	President
	Chief Executive Officer and Chief
	Financial Officer
	August 11, 2010

A signed original of this written statement required by Section 906 has been provided to Security Land and Development Corporation and will be retained by Security Land and Development Corporation and furnished to the Securities and Exchange Commission or its staff upon request.