UNITED CONTINENTAL INCOME FUND, INC.
Supplement to the Statement of Additional Information
Dated June 30, 1996
The following paragraph supplements the information that appears in the section
entitled "Specific Securities and Investment Practices":
Asset-Backed Securities
Asset-backed securities represent interest in pools of consumer loans
(generally unrelated to mortgage loans) and most often are structured
as pass-through securities. Interest and principal payments
ultimately depend upon payment of the underlying loans by individuals,
although the securities may be supported by letters of credit or other
credit enhancements. The value of asset-backed securities may also
depend on the creditworthiness of the servicing agent for the loan
pool, the originator of the loans, or the financial institution
providing the credit enhancement.
The following information replaces the last sentence under the heading
"Custodial and Auditing Services" on page 33:
Deloitte & Touche LLP, Kansas City, Missouri, the Fund's independent
accountants, audits the Fund's financial statements.
This Supplement is dated January 10, 1997.
