MUNICIPAL INVESTMENT TR FD MULTISTATE SER 309 DEF ASSET FDS, 497, 1999-08-02

MUNICIPAL INVESTMENT TR FD MULTISTATE SER 309 DEF ASSET FDS
497, 1999-08-02

Previous: HOUSEHOLD CONSUMER LOAN TRUST 1997-1, 8-K, 1999-08-02

Next: ADVANCED INVESTMENT TECHNOLOGY INC/FL, 13F-HR, 1999-08-02

<PAGE>
DEFINED ASSET FUNDSSM
- --------------------------------------------
- ----------------------------------

MUNICIPAL INVESTMENT TRUST FUND
MULTISTATE SERIES--309
(A UNIT INVESTMENT TRUST)
O CALIFORNIA, CONNECTICUT, FLORIDA, NEW JERSEY
AND NEW YORK PORTFOLIOS
O PORTFOLIOS OF LONG-TERM MUNICIPAL BONDS
O DESIGNED FOR FEDERALLY TAX-FREE INCOME
O EXEMPT FROM SOME STATE TAXES
O MONTHLY DISTRIBUTIONS

SPONSORS:
Merrill Lynch,
Pierce, Fenner & Smith -------------------------------------------------
Incorporated The Securities and Exchange Commission has not
Salomon Smith Barney Inc. approved or disapproved these Securities or
Prudential Securities passed upon the adequacy of this prospectus. Any
Incorporated representation to the contrary is a criminal
PaineWebber Incorporated offense.
Dean Witter Reynolds Inc. Prospectus dated July 30, 1999.

<PAGE>
- --------------------------------------------------------------------------------

Defined Asset FundsSM
Defined Asset FundsSM is America's oldest and largest family of unit investment
trusts, with over $160 billion sponsored over the last 28 years. Defined Asset
Funds has been a leader in unit investment trust research and product
innovation. Our family of Funds helps investors work toward their financial
goals with a full range of quality investments, including municipal, corporate
and government bond portfolios, as well as domestic and international equity
portfolios.

Defined Asset Funds offer a number of advantages:
o A disciplined strategy of buying and holding with a long-term view is the
cornerstone of Defined Asset Funds.
o Fixed portfolio: Defined Funds follow a buy and hold investment strategy;
funds are not managed and portfolio changes are limited.
o Defined Portfolios: We choose the stocks and bonds in advance, so you know
what you're investing in.
o Professional research: Our dedicated research team seeks out stocks or bonds
appropriate for a particular fund's objectives.
o Ongoing supervision: We monitor each portfolio on an ongoing basis.
No matter what your investment goals, tolerance for risk or time horizon,
there's probably a Defined Asset Fund that suits your investment style. Your
financial professional can help you select a Defined Asset Fund that works best
for your investment portfolio.

THE FINANCIAL INFORMATION IN THIS PROSPECTUS IS AS OF MARCH 31, 1999, THE
EVALUATION DATE.

CONTENTS
PAGE
-----------
California Insured Portfolio--
Risk/Return Summary.................................. 3
Connecticut Portfolio--Risk/Return Summary.............. 6
Florida Insured Portfolio-- Risk/Return Summary......... 9
New Jersey Insured Portfolio--
Risk/Return Summary.................................. 12
New York Portfolio--
Risk/Return Summary.................................. 15
What You Can Expect From Your Investment................ 20
Monthly Income....................................... 20
Return Figures....................................... 20
Records and Reports.................................. 20
The Risks You Face...................................... 21
Interest Rate Risk................................... 21
Call Risk............................................ 21
Reduced Diversification Risk......................... 21
Liquidity Risk....................................... 21
Concentration Risk................................... 21
State Concentration Risk............................. 22
Bond Quality Risk.................................... 25
Insurance Related Risk............................... 25
Litigation and Legislation Risks..................... 25
Selling or Exchanging Units............................. 25
Sponsors' Secondary Market........................... 26
Selling Units to the Trustee......................... 26
Exchange Option...................................... 26
How The Fund Works...................................... 27
Pricing.............................................. 27
Evaluations.......................................... 27
Income............................................... 27
Expenses............................................. 27
Portfolio Changes.................................... 28
Fund Termination..................................... 28
Certificates......................................... 29
Trust Indenture...................................... 29
Legal Opinion........................................ 29
Auditors............................................. 30
Sponsors............................................. 30
Trustee.............................................. 30
Underwriters' and Sponsors' Profits 30
Public Distribution.................................. 30
Code of Ethics....................................... 30
Year 2000 Issues..................................... 31
Taxes................................................... 31
Supplemental Information................................ 33
Financial Statements.................................... D-1

2
<PAGE>
- --------------------------------------------------------------------------------

CALIFORNIA INSURED PORTFOLIO--RISK/RETURN SUMMARY

1. WHAT IS THE FUND'S OBJECTIVE?
The Fund seeks interest income that is exempt from regular
federal income taxes and some state and local taxes by
investing in a fixed portfolio consisting primarily of
insured, long term municipal revenue bonds.
2. WHAT ARE MUNICIPAL REVENUE BONDS?
Municipal revenue bonds are bonds issued by states,
municipalities and public authorities to finance the cost
of buying, building or improving various projects intended
to generate revenue, such as airports, health care
facilities, housing and municipal electric, water and sewer
utilities. Generally, payments on these bonds depend solely
on the revenues generated by the projects, excise taxes or
state appropriations, and are not backed by the
government's taxing power.

3. WHAT IS THE FUND'S INVESTMENT STRATEGY?
O The Fund plans to hold to maturity 6 long-term tax-exempt
municipal bonds, and some short-term bonds reserved to pay
the deferred sales fee, with an aggregate face amount of
$4,800,000.
o The Fund is a unit investment trust which means that,
unlike a mutual fund, the Portfolio is not managed.
o The bonds are rated AAA or Aaa by Standard & Poor's,
Moody's or Fitch.
o 100% of the bonds are insured by insurance companies that
guarantee timely payments of principal and interest on the
bonds (but not Fund units or the market value of the bonds
before they mature).

The Portfolio consists of municipal bonds of the following
types:

APPROXIMATE
PORTFOLIO
PERCENTAGE

/ / General Obligation 16%
/ / Hospital/Health Care 13%
/ / Lease Rental Appropriation 22%
/ / Municipal Water/Sewer Utilities 16%
/ / Refunded Bonds 14%
/ / Municipal Electric Utilities 3%
/ / Universities/Colleges 16%

4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN
HAPPEN FOR VARIOUS REASONS, INCLUDING:
o Rising interest rates, an issuer's worsening financial
condition or a drop in bond ratings can reduce the price of
your units.
o Assuming no changes in interest rates, when you sell your
units, they will generally be worth less than your cost
because your cost included a sales fee.
o The Fund will receive early returns of principal if bonds
are called or sold before they mature. If this happens your
income will decline and you may not be able to reinvest the
money you receive at as high a yield or as long a maturity.

ALSO, THE PORTFOLIO IS CONCENTRATED IN BONDS OF CALIFORNIA
SO IT IS LESS DIVERSIFIED THAN A NATIONAL FUND AND IS
SUBJECT TO RISKS PARTICULAR TO CALIFORNIA WHICH ARE BRIEFLY
DESCRIBED UNDER STATE CONCENTRATION RISKS LATER IN THIS
PROSPECTUS.

3
<PAGE>

5. IS THIS FUND APPROPRIATE FOR YOU?
Yes, if you want federally tax-free income. You will
benefit from a professionally selected and supervised
portfolio whose risk is reduced by investing in insured
bonds of several different issuers.
The Fund is not appropriate for you if you want a
speculative investment that changes to take advantage of
market movements, if you do not want a tax-advantaged
investment or if you cannot tolerate any risk.

DEFINING YOUR INCOME

WHAT YOU MAY EXPECT (Payable on the 25th day of
the month to holders of record on the 10th day
of the month):
Regular Monthly Income per unit $ 4.49
Annual Income per unit: $ 53.91
These figures are estimates determined on the evaluation
day; actual payments may vary.

6. WHAT ARE THE FUND'S FEES AND EXPENSES?
This table shows the costs and expenses you may pay,
directly or indirectly, when you invest in the Fund.
INVESTOR FEES
Maximum Sales Fee (Load) on new
purchases (as a percentage of
$1,000 invested) 2.90%
You will pay an up-front sales fee of 1.125%, as well as a
deferred sales fee of $3.75 per unit quarterly November,
February, May and August through May, 2000. Employees of
some of the Sponsors and their affiliates may pay a reduced
sales fee of no less than $5.00 per unit.
The maximum sales fee is reduced if you invest at least
$100,000, as follows:

YOUR MAXIMUM
SALES FEE
IF YOU INVEST: WILL BE:
----------------------------------- -----------------
Less than $100,000 2.90%
$100,000 to $249,999 2.65%
$250,000 to $499,999 2.40%
$500,000 to $999,999 2.15%
$1,000,000 and over 1.90%

Maximum Exchange Fee 1.90%

ESTIMATED ANNUAL FUND OPERATING EXPENSES

AMOUNT
PER UNIT
-----------
$ 0.71
Trustee's Fee
$ 0.46
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
$ 0.28
Evaluator's Fee
$ 0.20
Organization Costs
$ 0.13
Other Operating Expenses
-----------
$ 1.78
TOTAL

The Sponsors historically paid organization costs and
updating expenses.
7. HOW HAVE SIMILAR FUNDS PERFORMED IN THE PAST?
In the following chart we show past performance of prior
California Portfolios, which had investment objectives,
strategies and types of bonds substantially similar to
this Fund. These prior Series differed in that they
charged a higher sales fee. These prior California Series
were offered between June 22, 1988 and September 27, 1996
and were outstanding on March 31, 1999. OF COURSE, PAST
PERFORMANCE OF PRIOR SERIES IS NO GUARANTEE OF FUTURE
RESULTS OF THIS FUND.
AVERAGE ANNUAL COMPOUND TOTAL RETURNS
FOR PRIOR SERIES
Reflecting all expenses. For periods ended 6/30/99.

NO SALES
WITH SALES FEE FEE
1 YEAR 5 YEARS 1 YEAR 5 YEARS

- -------------------------------------------------------------------

High 4.57% 7.62% 7.61% 8.82%
Average 2.32 5.66 5.52 6.70
Low 0.40 4.27 3.11 5.10

- -------------------------------------------------------------------

Average
Sales fee 3.18% 5.10%

- ----------------------------------------------------------------

Note: All returns represent changes in unit price with distributions reinvested
into the Municipal Fund Investment Accumulation Program.

4
<PAGE>

11. HOW ARE DISTRIBUTIONS MADE AND TAXED?
The Fund pays income monthly.
In the opinion of bond counsel when each bond was issued,
interest on the bonds in this Fund is generally 100% exempt
from regular federal income tax. Your income may also be
exempt from some California state and local personal income
taxes if you live in California.
You will also receive principal payments if bonds are sold
or called or mature, when the cash available is more than
$5.00 per unit. You will be subject to tax on any gain
realized by the Fund on the disposition of bonds.
12. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You will receive your income in cash unless you choose to
compound your income by reinvesting at no sales fee in the
Municipal Fund Investment Accumulation Program, Inc. This
program is an open-end mutual fund with a comparable
investment objective, but the bonds will generally not be
insured. Income from this program will generally be subject
to state and local income taxes. For more complete
information about the program, including charges and fees,
ask the Trustee for the program's prospectus. Read it
carefully before you invest. The Trustee must receive your
written election to reinvest at least 10 days before the
record day of an income payment.
EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain
other Defined Asset Funds. You may also exchange into this
Fund from certain other funds. We charge a reduced sales fee
on exchanges.

5
<PAGE>
- --------------------------------------------------------------------------------

CONNECTICUT PORTFOLIO--RISK/RETURN SUMMARY

1. WHAT IS THE FUND'S OBJECTIVE?
The Fund seeks interest income that is exempt from regular
federal income taxes and some state and local taxes by
investing in a fixed portfolio consisting primarily of long
term municipal revenue bonds.
2. WHAT ARE MUNICIPAL REVENUE BONDS?
Municipal revenue bonds are bonds issued by states,
municipalities and public authorities to finance the cost
of buying, building or improving various projects intended
to generate revenue, such as airports, health care
facilities, housing and municipal electric, water and sewer
utilities. Generally, payments on these bonds depend solely
on the revenues generated by the projects, excise taxes or
state appropriations, and are not backed by the
government's taxing power.

3. WHAT IS THE FUND'S INVESTMENT STRATEGY?
O The Fund plans to hold to maturity 7 long-term tax-exempt
municipal bonds, and some short-term bonds reserved to pay
the deferred sales fee, with an aggregate face amount of
$2,800,000.
o The Fund is a unit investment trust which means that,
unlike a mutual fund, the Portfolio is not managed.
o When the bonds were initially deposited they were rated A
or better by Standard & Poor's, Moody's or Fitch. The
quality of the bonds may currently be lower.
o 71% of the bonds are insured by insurance companies that
guarantee timely payments of principal and interest on the
bonds (but not Fund units or the market value of the bonds
before they mature).

The Portfolio consists of municipal bonds of the following
types:

APPROXIMATE
PORTFOLIO
PERCENTAGE
/ / Airports/Ports/Highways 9%
/ / General Obligation 2%
/ / Hospital/Health Care 16%
/ / Housing 18%
/ / Industrial Development Revenue 9%
/ / Miscellaneous 16%
/ / Special Tax Issues 1%
/ / Universities/Colleges 29%

4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN
HAPPEN FOR VARIOUS REASONS, INCLUDING:
o Rising interest rates, an issuer's worsening financial
condition or a drop in bond ratings can reduce the price of
your units.
o Because the Fund is concentrated in university/college
bonds, adverse developments in this sector may affect the
value of your units.
o Assuming no changes in interest rates, when you sell your
units, they will generally be worth less than your cost
because your cost included a sales fee.
o The Fund will receive early returns of principal if bonds
are called or sold before they mature. If this happens your
income will decline and you may not be able to reinvest the
money you receive at as high a yield or as long a maturity.

ALSO, THE PORTFOLIO IS CONCENTRATED IN BONDS OF CONNECTICUT
SO IT IS LESS DIVERSIFIED THAN A NATIONAL FUND AND IS
SUBJECT TO RISKS PARTICULAR TO CONNECTICUT WHICH ARE
BRIEFLY DESCRIBED UNDER STATE CONCENTRATION RISKS LATER IN
THIS PROSPECTUS.

6
<PAGE>

5. IS THIS FUND APPROPRIATE FOR YOU?
Yes, if you want federally tax-free income. You will
benefit from a professionally selected and supervised
portfolio whose risk is reduced by investing in bonds of
several different issuers.
The Fund is not appropriate for you if you want a
speculative investment that changes to take advantage of
market movements, if you do not want a tax-advantaged
investment or if you cannot tolerate any risk.

DEFINING YOUR INCOME

WHAT YOU MAY EXPECT (Payable on the 25th day of
the month to holders of record on the 10th day
of the month):
Regular Monthly Income per unit $ 4.51
Annual Income per unit: $ 54.18
These figures are estimates determined on the evaluation
day; actual payments may vary.

6. WHAT ARE THE FUND'S FEES AND EXPENSES?
This table shows the costs and expenses you may pay,
directly or indirectly, when you invest in the Fund.
INVESTOR FEES
Maximum Sales Fee (Load) on new
purchases (as a percentage of
$1,000 invested) 2.90%
You will pay an up-front sales fee of 1.125% as well as a
deferred sales fee of $3.75 per unit quarterly November,
February, May and August, through May, 2000.
Employees of some of the Sponsors and their affiliates may
be charged a reduced sales fee of no less than $5.00 per
unit.
The maximum sales fee is reduced if you invest at least
$100,000, as follows:

Maximum Exchange Fee 1.90%

ESTIMATED ANNUAL FUND OPERATING EXPENSES

AMOUNT
PER UNIT
-----------
$ 0.71
Trustee's Fee
$ 0.46
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
$ 0.48
Evaluator's Fee
$ 0.20
Organization Costs
$ 0.26
Other Operating Expenses
-----------
$ 2.11
TOTAL

The Sponsors historically paid organization costs and
updating expenses.
7. HOW HAVE SIMILAR FUNDS PERFORMED IN THE PAST?
In the following chart we show past performance of prior
Connecticut Portfolios, which had investment objectives,
strategies and types of bonds substantially similar to
this Fund. These prior Series differed in that they
charged a higher sales fee. These prior Connecticut Series
were offered between October 26, 1988 and April 25, 1996
and were outstanding on March 31, 1999. OF COURSE, PAST
PERFORMANCE OF PRIOR SERIES IS NO GUARANTEE OF FUTURE
RESULTS OF THIS FUND.
AVERAGE ANNUAL COMPOUND TOTAL RETURNS
FOR PRIOR SERIES
Reflecting all expenses. For periods ended 6/30/99.

WITH SALES FEE NO SALES FEE
1 YEAR 5 YEARS 10 YEARS 1 YEAR 5 YEARS 10 YEARS

- -------------------------------------------------------------------

High 5.44% 7.23% 6.86% 6.62% 8.43% 7.46%
Average 2.77 5.16 6.74 5.00 6.14 7.34
Low 0.43 4.55 6.65 3.81 5.39 7.24

- -------------------------------------------------------------------

Average
Sales fee 2.21% 4.79% 5.82%

- -------------------------------------------------------------------

Note: All returns represent changes in unit price with distributions reinvested
into the Municipal Fund Investment Accumulation Program.

7
<PAGE>

12. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You will receive your income in cash unless you choose to
compound your income by reinvesting at no sales fee in the
Municipal Fund Investment Accumulation Program, Inc. This
program is an open-end mutual fund with a comparable
investment objective. Income from this program will
generally be subject to state and local income taxes. For
more complete information about the program, including
charges and fees, ask the Trustee for the program's
prospectus. Read it carefully before you invest. The
Trustee must receive your written election to reinvest at
least 10 days before the record day of an income payment.
EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain
other Defined Asset Funds. You may also exchange into this
Fund from certain other funds. We charge a reduced sales
fee on exchanges.

8
<PAGE>
- --------------------------------------------------------------------------------

FLORIDA INSURED PORTFOLIO--RISK/RETURN SUMMARY

3. WHAT IS THE FUND'S INVESTMENT STRATEGY?
O The Fund plans to hold to maturity 7 long-term tax-exempt
municipal bonds, and some short-term bonds reserved to pay
the deferred sales fee, with an aggregate face amount of
$3,250,000.
o The Fund is a unit investment trust which means that,
unlike a mutual fund, the Portfolio is not managed.
o The bonds are rated AAA or Aaa by Standard & Poor's,
Moody's or Fitch.
o The Fund is concentrated in refunded bonds.
o 100% of the bonds are insured by insurance companies that
guarantee timely payments of principal and interest on the
bonds (but not Fund units or the market value of the bonds
before they mature).

The Portfolio consists of municipal bonds of the following
types:

APPROXIMATE
PORTFOLIO
PERCENTAGE

/ / General Obligation 2%
/ / Hospital/Health Care 31%
/ / Lease Rental Appropriation 2%
/ / Refunded Bonds 27%
/ / Solid Waste Disposal 12%
/ / Special Tax Issues 15%
/ / Universities/Colleges 11%

4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN
HAPPEN FOR VARIOUS REASONS, INCLUDING:
o Rising interest rates, an issuer's worsening financial
condition or a drop in bond ratings can reduce the price of
your units.
o Because the Fund is concentrated in hospital/health care
bonds, adverse developments in this sector may affect the
value of your units.
o Assuming no changes in interest rates, when you sell your
units, they will generally be worth less than your cost
because your cost included a sales fee.
o The Fund will receive early returns of principal if bonds
are called or sold before they mature. If this happens your
income will decline and you may not be able to reinvest the
money you receive at as high a yield or as long a maturity.

ALSO, THE PORTFOLIO IS CONCENTRATED IN BONDS OF FLORIDA SO
IT IS LESS DIVERSIFIED THAN A NATIONAL FUND AND IS SUBJECT
TO RISKS PARTICULAR TO FLORIDA WHICH ARE BRIEFLY DESCRIBED
UNDER STATE CONCENTRATION RISKS LATER IN THIS PROSPECTUS.

9
<PAGE>

DEFINING YOUR INCOME

WHAT YOU MAY EXPECT (Payable on the 25th day of
the month to holders of record on the 10th day
of the month):
Regular Monthly Income per unit $ 4.38
Annual Income per unit: $ 52.59
These figures are estimates determined on the evaluation
day; actual payments may vary.

Maximum Exchange Fee 1.90%

ESTIMATED ANNUAL FUND OPERATING EXPENSES

AMOUNT
PER UNIT
-----------
$ 0.71
Trustee's Fee
$ 0.46
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
$ 0.41
Evaluator's Fee
$ 0.20
Organization Costs
$ 0.15
Other Operating Expenses
-----------
$ 1.93
TOTAL

The Sponsors historically paid organization costs and
updating expenses.
7. HOW HAVE SIMILAR FUNDS PERFORMED IN THE PAST?
In the following chart we show past performance of prior
Florida Portfolios, which had investment objectives,
strategies and types of bonds substantially similar to
this Fund. These prior Series differed in that they
charged a higher sales fee. These prior Florida Series
were offered between August 25, 1988 and December 6, 1996
and were outstanding on March 31, 1999. OF COURSE, PAST
PERFORMANCE OF PRIOR SERIES IS NO GUARANTEE OF FUTURE
RESULTS OF THIS FUND.
AVERAGE ANNUAL COMPOUND TOTAL RETURNS
FOR PRIOR SERIES
Reflecting all expenses. For periods ended 6/30/99.

WITH SALES FEE NO SALES FEE
1 YEAR 5 YEARS 10 YEARS 1 YEAR 5 YEARS 10 YEARS

- -------------------------------------------------------------------

High 4.94% 7.40% 6.95% 7.59% 8.61% 7.55%
Average 2.24 5.62 6.79 5.45 6.67 7.39
Low -0.66 4.39 6.71 3.15 5.28 7.31

- -------------------------------------------------------------------

Average
Sales fee 3.19% 5.13% 5.82%

- ----------------------------------------------------------------

Note: All returns represent changes in unit price with distributions reinvested
into the Municipal Fund Investment Accumulation Program.

10
<PAGE>

11. HOW ARE DISTRIBUTIONS MADE AND TAXED?
The Fund pays income monthly.
In the opinion of bond counsel when each bond was issued,
interest on the bonds in this Fund is generally 100% exempt
from regular federal income tax. Your income may also be
exempt from some Florida state and local taxes if you live in
Florida.
You will also receive principal payments if bonds are sold or
called or mature, when the cash available is more than $5.00
per unit. You will be subject to tax on any gain realized by
the Fund on the disposition of bonds.
12. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You will receive your income in cash unless you choose to
compound your income by reinvesting at no sales fee in the
Municipal Fund Investment Accumulation Program, Inc. This
program is an open-end mutual fund with a comparable
investment objective, but the bonds generally will not be
insured. Income from this program will generally be subject
to state and local income taxes. For more complete
information about the program, including charges and fees,
ask the Trustee for the program's prospectus. Read it
carefully before you invest. The Trustee must receive your
written election to reinvest at least 10 days before the
record day of an income payment.
EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain
other Defined Asset Funds. You may also exchange into this
Fund from certain other funds. We charge a reduced sales fee
on exchanges.

11
<PAGE>
- --------------------------------------------------------------------------------

NEW JERSEY INSURED PORTFOLIO--RISK/RETURN SUMMARY

3. WHAT IS THE FUND'S INVESTMENT STRATEGY?
O The Fund plans to hold to maturity 8 long-term tax-exempt
municipal bonds, and some short-term bonds reserved to pay
the deferred sales fee, with an aggregate face amount of
$2,580,000.
o The Fund is a unit investment trust which means that,
unlike a mutual fund, the Portfolio is not managed.
o The bonds are rated AAA or Aaa by Standard & Poor's,
Moody's or Fitch.
o 100% of the bonds are insured by insurance companies that
guarantee timely payments of principal and interest on the
bonds (but not Fund units or the market value of the bonds
before they mature).

The Portfolio consists of municipal bonds of the following
types:

APPROXIMATE
PORTFOLIO
PERCENTAGE

/ / Airports/Ports/Highways 10%
/ / General Obligation 25%
/ / Hospital/Health Care 39%
/ / Lease Rental Appropriation 3%
/ / Municipal Water/Sewer Utilities 6%
/ / Refunded Bonds 17%

4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN
HAPPEN FOR VARIOUS REASONS, INCLUDING:
o Rising interest rates, an issuer's worsening financial
condition or a drop in bond ratings can reduce the price of
your units.
o Because the Fund is concentrated in hospital/health care
and general obligation bonds, adverse developments in these
sectors may affect the value of your units.
o Assuming no changes in interest rates, when you sell your
units, they will generally be worth less than your cost
because your cost included a sales fee.
o The Fund will receive early returns of principal if bonds
are called or sold before they mature. If this happens your
income will decline and you may not be able to reinvest the
money you receive at as high a yield or as long a maturity.

ALSO, THE PORTFOLIO IS CONCENTRATED IN BONDS OF NEW JERSEY
SO IT IS LESS DIVERSIFIED THAN A NATIONAL FUND AND IS
SUBJECT TO RISKS PARTICULAR TO NEW JERSEY WHICH ARE BRIEFLY
DESCRIBED UNDER STATE CONCENTRATION RISKS LATER IN THIS
PROSPECTUS.

12
<PAGE>

DEFINING YOUR INCOME

WHAT YOU MAY EXPECT (Payable on the 25th day of
the month to holders of record on the 10th day
of the month):
Regular Monthly Income per unit $ 4.46
Annual Income per unit: $ 53.53
These figures are estimates determined on the evaluation
day; actual payments may vary.

Maximum Exchange Fee 1.90%

ESTIMATED ANNUAL FUND OPERATING EXPENSES

AMOUNT
PER UNIT
-----------
$ 0.71
Trustee's Fee
$ 0.46
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
$ 0.52
Evaluator's Fee
$ 0.20
Organization Costs
$ 0.23
Other Operating Expenses
-----------
$ 2.12
TOTAL

The Sponsors historically paid organization costs and
updating expenses.
7. HOW HAVE SIMILAR FUNDS PERFORMED IN THE PAST?
In the following chart we show past performance of prior
New Jersey Portfolios, which had investment objectives,
strategies and types of bonds substantially similar to
this Fund. These prior Series differed in that they
charged a higher sales fee. These prior New Jersey Series
were offered between June 22, 1988 and September 19, 1996
and were outstanding on March 31, 1999. OF COURSE, PAST
PERFORMANCE OF PRIOR SERIES IS NO GUARANTEE OF FUTURE
RESULTS OF THIS FUND.
AVERAGE ANNUAL COMPOUND TOTAL RETURNS
FOR PRIOR SERIES
Reflecting all expenses. For periods ended 6/30/99.

WITH SALES FEE NO SALES FEE
1 YEAR 5 YEARS 10 YEARS 1 YEAR 5 YEARS 10 YEARS

- -------------------------------------------------------------------

High 5.83% 7.04% 6.92% 7.45% 8.24% 7.52%
Average 2.55 5.41 6.80 5.53 6.46 7.40
Low 0.51 4.20 6.73 3.51 5.19 7.33

- -------------------------------------------------------------------

Average
Sales fee 2.96% 5.14% 5.82%

- ----------------------------------------------------------------

Note: All returns represent changes in unit price with distributions reinvested
into the Municipal Fund Investment Accumulation Program.

13
<PAGE>

9. HOW DO I BUY UNITS?
The minimum investment is one unit.
You can buy units from any of the Sponsors and other
broker-dealers. The Sponsors are listed later in this
prospectus. Some banks may offer units for sale through
special arrangements with the Sponsors, although certain
legal restrictions may apply.
UNIT PRICE PER UNIT $1,079.62
(as of March 31, 1999)
Unit price is based on the net asset value of the Fund plus
the sales fee. An amount equal to any principal cash, as
well as net accrued but undistributed interest on the unit,
is added to the unit price. An independent evaluator prices
the bonds at 3:30 p.m. Eastern time every business day.
Unit price changes every day with changes in the prices of
the bonds in the Fund.
10. HOW DO I SELL UNITS?
You may sell your units at any time to any Sponsor or the
Trustee for the net asset value determined at the close of
business on the date of sale, less any remaining deferred
sales fee. You will not pay any other fee when you sell
your units.
11. HOW ARE DISTRIBUTIONS MADE AND TAXED?
The Fund pays income monthly.
In the opinion of bond counsel when each bond was issued,
interest on the bonds in this Fund is generally 100% exempt
from regular federal income tax. Your income may also be
exempt from some New Jersey state and local personal income
taxes if you live in New Jersey.
You will also receive principal payments if bonds are sold
or called or mature, when the cash available is more than
$5.00 per unit. You will be subject to tax on any gain
realized by the Fund on the disposition of bonds.
12. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You will receive your income in cash unless you choose to
compound your income by reinvesting at no sales fee in the
Municipal Fund Investment Accumulation Program, Inc. This
program is an open-end mutual fund with a comparable
investment objective, but the bonds will generally not be
insured. Income from this program will generally be subject
to state and local income taxes. For more complete
information about the program, including charges and fees,
ask the Trustee for the program's prospectus. Read it
carefully before you invest. The Trustee must receive your
written election to reinvest at least 10 days before the
record day of an income payment.
EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain
other Defined Asset Funds. You may also exchange into this
Fund from certain other funds. We charge a reduced sales
fee on exchanges.

14
<PAGE>
- --------------------------------------------------------------------------------

NEW YORK PORTFOLIO--RISK/RETURN SUMMARY

1. WHAT IS THE FUND'S OBJECTIVE?
The Fund seeks interest income that is exempt from regular
federal income taxes and some state and local taxes by
investing in a fixed portfolio consisting primarily of long
term municipal revenue bonds.
2. WHAT ARE MUNICIPAL REVENUE BONDS?
Municipal revenue bonds are bonds issued by states,
municipalities and public authorities to finance the cost
of buying, building or improving various projects intended
to generate revenue, such as airports, health care
facilities, housing and municipal electric, water and sewer
utilities. Generally, payments on these bonds depend solely
on the revenues generated by the projects, excise taxes or
state appropriations, and are not backed by the
government's taxing power.

3. WHAT IS THE FUND'S INVESTMENT STRATEGY?
O The Fund plans to hold to maturity 7 long-term tax-exempt
municipal bonds, any some short-term bonds reserved to pay
the deferred sales fee, with an aggregate face amount of
$3,510,000.
o The Fund is a unit investment trust which means that,
unlike a mutual fund, the Portfolio is not managed.
o When the bonds were initially deposited they were rated A
or better by Standard & Poor's, Moody's or Fitch. The
quality of the bonds may currently be lower.

The Portfolio consists of municipal bonds of the following
types:

APPROXIMATE
PORTFOLIO
PERCENTAGE

/ / General Obligation 1%
/ / Hospital/Health Care 27%
/ / Housing 13%
/ / Lease Rental Appropriation 15%
/ / Municipal Water/Sewer Utilities 14%
/ / Universities/Colleges 30%

4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN
HAPPEN FOR VARIOUS REASONS, INCLUDING:
o Rising interest rates, an issuer's worsening financial
condition or a drop in bond ratings can reduce the price of
your units.
o Because the Fund is concentrated in hospital/health care
and university/college bonds, adverse developments in these
sectors may affect the value of your units.
o Assuming no changes in interest rates, when you sell your
units, they will generally be worth less than your cost
because your cost included a sales fee.
o The Fund will receive early returns of principal if bonds
are called or sold before they mature. If this happens your
income will decline and you may not be able to reinvest the
money you receive at as high a yield or as long a maturity.

ALSO, THE PORTFOLIO IS CONCENTRATED IN BONDS OF NEW YORK SO
IT IS LESS DIVERSIFIED THAN A NATIONAL FUND AND IS SUBJECT
TO RISKS PARTICULAR TO NEW YORK WHICH ARE BRIEFLY DESCRIBED
UNDER STATE CONCENTRATION RISKS LATER IN THIS PROSPECTUS.

15
<PAGE>

5. IS THIS FUND APPROPRIATE FOR YOU?
Yes, if you want federally tax-free income. You will
benefit from a professionally selected and supervised
portfolio whose risk is reduced by investing in bonds of
several different issuers.
The Fund is not appropriate for you if you want a
speculative investment that changes to take advantage of
market movements, if you do not want a tax-advantaged
investment or if you cannot tolerate any risk.

DEFINING YOUR INCOME

WHAT YOU MAY EXPECT (Payable on the 25th day of
the month to holders of record on the 10th day
of the month):
Regular Monthly Income per unit $ 4.47
Annual Income per unit: $ 53.75
These figures are estimates determined on the evaluation
day; actual payments may vary.

6. WHAT ARE THE FUND'S FEES AND EXPENSES?
This table shows the costs and expenses you may pay,
directly or indirectly, when you invest in the Fund.
INVESTOR FEES
Maximum Sales Fee (Load) on new
purchases (as a percentage of
$1,000 invested) 2.90%
You will pay an up-front sales fee of 1.125%, as well as a
deferred sales fee of $3.75 per unit quarterly November,
February, May and August, through May, 2000. Employees of
some of the Sponsors and their affiliates may pay a reduced
sales fee of no less than $5.00 per unit.
The maximum sales fee is reduced if you invest at least
$100,000, as follows:

Maximum Exchange Fee 1.90%

ESTIMATED ANNUAL FUND OPERATING EXPENSES

AMOUNT
PER UNIT
-----------
$ 0.71
Trustee's Fee
$ 0.46
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses)
$ 0.38
Evaluator's Fee
$ 0.20
Organization Costs
$ 0.11
Other Operating Expenses
-----------
$ 1.86
TOTAL

The Sponsors historically paid organization costs and
updating expenses.
7. HOW HAVE SIMILAR FUNDS PERFORMED IN THE PAST?
In the following chart we show past performance of prior
New York Portfolios, which had investment objectives,
strategies and types of bonds substantially similar to
this Fund. These prior Series differed in that they
charged a higher sales fee. These prior New York Series
were offered between January 14, 1988 and October 16, 1996
and were outstanding on March 31, 1999. OF COURSE, PAST
PERFORMANCE OF PRIOR SERIES IS NO GUARANTEE OF FUTURE
RESULTS OF THIS FUND.
AVERAGE ANNUAL COMPOUND TOTAL RETURNS
FOR PRIOR SERIES
Reflecting all expenses. For periods ended 6/30/99.

WITH SALES FEE NO SALES FEE
1 YEAR 5 YEARS 10 YEARS 1 YEAR 5 YEARS 10 YEARS

- -------------------------------------------------------------------

High 5.38% 7.23% 7.44% 7.65% 8.43% 8.04%
Average 2.37 5.33 7.17 5.49 6.33 7.76
Low -0.98 4.23 7.00 3.37 5.12 7.59

- -------------------------------------------------------------------

Average
Sales fee 3.11% 4.90% 5.77%

- -------------------------------------------------------------------

Note: All returns represent changes in unit price with distributions reinvested
into the Municipal Fund Investment Accumulation Program.
16
<PAGE>

8. IS THE FUND MANAGED?
Unlike a mutual fund, the Fund is not managed and bonds are
not sold because of market changes. Rather, experienced
Defined Asset Funds financial analysts regularly review the
bonds in the Fund. The Fund may sell a bond if certain
adverse credit or other conditions exist.
9. HOW DO I BUY UNITS?
The minimum investment is one unit.
You can buy units from any of the Sponsors and other
broker-dealers. The Sponsors are listed later in this
prospectus. Some banks may offer units for sale through
special arrangements with the Sponsors, although certain
legal restrictions may apply.
UNIT PRICE PER UNIT $1,061.18
(as of March 31, 1999)
Unit price is based on the net asset value of the Fund plus
the sales fee. An amount equal to any principal cash, as
well as net accrued but undistributed interest on the unit,
is added to the unit price. An independent evaluator prices
the bonds at 3:30 p.m. Eastern time every business day. Unit
price changes every day with changes in the prices of the
bonds in the Fund.
10. HOW DO I SELL UNITS?
You may sell your units at any time to any Sponsor or the
Trustee for the net asset value determined at the close of
business on the date of sale, less any remaining deferred
sales fee. You will not pay any other fee when you sell your
units.

11. HOW ARE DISTRIBUTIONS MADE AND TAXED?
The Fund pays income monthly.
In the opinion of bond counsel when each bond was issued,
interest on the bonds in this Fund is generally 100% exempt
from regular federal income tax. Your income may also be
exempt from some New York state and local personal income
taxes if you live in New York.
You will also receive principal payments if bonds are sold
or called or mature, when the cash available is more than
$5.00 per unit. You will be subject to tax on any gain
realized by the Fund on the disposition of bonds.
12. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You will receive your income in cash unless you choose to
compound your income by reinvesting at no sales fee in the
Municipal Fund Investment Accumulation Program, Inc. This
program is an open-end mutual fund with a comparable
investment objective. Income from this program will
generally be subject to state and local income taxes. For
more complete information about the program, including
charges and fees, ask the Trustee for the program's
prospectus. Read it carefully before you invest. The Trustee
must receive your written election to reinvest at least 10
days before the record day of an income payment.
EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain
other Defined Asset Funds. You may also exchange into this
Fund from certain other funds. We charge a reduced sales fee
on exchanges.

17
<PAGE>
- --------------------------------------------------------------------------------
TAX-FREE VS. TAXABLE INCOME: A COMPARISON OF TAXABLE AND TAX-FREE YIELDS

FOR CALIFORNIA RESIDENTS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
COMBINED
EFFECTIVE
TAXABLE INCOME 1999* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 4% 4.5% 5% 5.5% 6% 6.5% 7% 7.5% 8%
IS EQUIVALENT TO A TAXABLE YIELD OF

- --------------------------------------------------------------------------------

FOR CONNECTICUT RESIDENTS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
COMBINED
EFFECTIVE
TAXABLE INCOME 1999* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 4% 4.5% 5% 5.5% 6% 6.5% 7% 7.5% 8%
IS EQUIVALENT TO A TAXABLE YIELD OF

- --------------------------------------------------------------------------------

FOR FLORIDA RESIDENTS
- --------------------------------------------------------------------------------

EFFECTIVE
TAXABLE INCOME 1999* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 3% 3.5% 4% 4.5% 5% 5.5% 6% 6.5% 7%
IS EQUIVALENT TO A TAXABLE YIELD OF

- --------------------------------------------------------------------------------

FOR NEW JERSEY RESIDENTS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
COMBINED
EFFECTIVE
TAXABLE INCOME 1999* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 4% 4.5% 5% 5.5% 6% 6.5% 7% 7.5% 8%
IS EQUIVALENT TO A TAXABLE YIELD OF

- --------------------------------------------------------------------------------

To compare the yield of a taxable security with the yield of a tax-free
security, find your taxable income and read across. The table incorporates 1999
federal and applicable State income tax rates and assumes that all income would
otherwise be taxed at the investor's highest tax rate. Yield figures are for
example only.

*Based upon net amount subject to federal income tax after deductions and
exemptions. This table does not reflect the possible effect of other tax
factors, such as alternative minimum tax, personal exemptions, the phase out of
exemptions, itemized deductions or the possible partial disallowance of
deductions. Consequently, you should consult your own tax advisers in this
regard.

18
<PAGE>
- --------------------------------------------------------------------------------
TAX-FREE VS. TAXABLE INCOME: A COMPARISON OF TAXABLE AND TAX-FREE YIELDS

FOR NEW YORK CITY RESIDENTS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
COMBINED
EFFECTIVE
TAXABLE INCOME 1999* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 4% 4.5% 5% 5.5% 6% 6.5% 7% 7.5% 8%
IS EQUIVALENT TO A TAXABLE YIELD OF

- --------------------------------------------------------------------------------

FOR NEW YORK STATE RESIDENTS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
COMBINED
EFFECTIVE
TAXABLE INCOME 1999* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 4% 4.5% 5% 5.5% 6% 6.5% 7% 7.5% 8%
IS EQUIVALENT TO A TAXABLE YIELD OF

- --------------------------------------------------------------------------------

To compare the yield of a taxable security with the yield of a tax-free
security, find your taxable income and read across. The table incorporates 1999
federal and applicable State (and City) income tax rates and assumes that all
income would otherwise be taxed at the investor's highest tax rate. Yield
figures are for example only.

*Based upon net amount subject to federal income tax after deductions and
exemptions. This table does not reflect the possible effect of other tax
factors, such as alternative minimum tax, personal exemptions, the phase out of
exemptions, itemized deductions or the possible partial disallowance of
deductions. Consequently, investors are urged to consult their own tax advisers
in this regard.

19
<PAGE>
WHAT YOU CAN EXPECT FROM YOUR INVESTMENT

MONTHLY INCOME

The Fund will pay you regular monthly income. Your monthly income may vary
because of:
o elimination of one or more bonds from the Fund's portfolio because of
calls, redemptions or sales;
o a change in the Fund's expenses; or
o the failure by a bond's issuer to pay interest.

Changes in interest rates generally will not affect your income because the
portfolio is fixed.

Along with your income, you will receive your share of any available bond
principal.

RETURN FIGURES

We cannot predict your actual return, which will vary with unit price, how long
you hold your investment and changes in the portfolio, interest income and
expenses.

Estimated Current Return equals the estimated annual cash to be received from
the bonds in the Fund less estimated annual Fund expenses, divided by the Unit
Price (including the maximum sales fee):

Estimated Annual Estimated
Interest Income - Annual Expenses
- -------------------------------------------------
Unit Price

Estimated Long Term Return is a measure of the estimated return over the
estimated life of the Fund. Unlike Estimated Current Return, Estimated Long Term
Return reflects maturities, discounts and premiums of the bonds in the Fund. It
is an average of the yields to maturity (or in certain cases, to an earlier call
date) of the individual bonds in the portfolio, adjusted to reflect the Fund's
maximum sales fee and estimated expenses. We calculate the average yield for the
portfolio by weighting each bond's yield by its market value and the time
remaining to the call or maturity date.

Yields on individual bonds depend on many factors including general conditions
of the bond markets, the size of a particular offering and the maturity and
quality rating of the particular issues. Yields can vary among bonds with
similar maturities, coupons and ratings.

These return quotations are designed to be comparative rather than predictive.

RECORDS AND REPORTS

You will receive:
o a monthly statement of income payments and any principal payments;
o a notice from the Trustee when new bonds are deposited in exchange or
substitution for bonds originally deposited;
o an annual report on Fund activity; and
o annual tax information. This will also be sent to the IRS. You must report the
amount of tax-exempt interest received during the year.

You may request:
o copies of bond evaluations to enable you to comply with federal and state tax
reporting requirements; and
o audited financial statements of the Fund.

You may inspect records of Fund transactions at the Trustee's office during
regular business hours.

20
<PAGE>
THE RISKS YOU FACE

INTEREST RATE RISK

Investing involves risks, including the risk that your investment will decline
in value if interest rates rise. Generally, bonds with longer maturities will
change in value more than bonds with shorter maturities. Bonds in the Fund are
more likely to be called when interest rates decline. This would result in early
returns of principal to you and may result in early termination of the Fund. Of
course, we cannot predict how interest rates may change.

CALL RISK

Many bonds can be prepaid or 'called' by the issuer before their stated
maturity.

For example, some bonds may be required to be called pursuant to mandatory
sinking fund provisions.

Also, an issuer might call its bonds during periods of falling interest rates,
if the issuer's bonds have a coupon higher than current market rates.

An issuer might call its bonds in extraordinary cases, including if:
o it no longer needs the money for the original purpose;
o the project is condemned or sold;
o the project is destroyed and insurance proceeds are used to redeem the
bonds;
o any related credit support expires and is not replaced; or
o interest on the bonds become taxable.

If the bonds are called, your income will decline and you may not be able to
reinvest the money you receive at as high a yield or as long a maturity. An
early call at par of a premium bond will reduce your return.

REDUCED DIVERSIFICATION RISK

If many investors sell their units, the Fund will have to sell bonds. This could
reduce the diversification of your investment and increase your share of Fund
expenses.

LIQUIDITY RISK

You can always sell back your units, but we cannot assure you that a liquid
trading market will always exist for the bonds in the portfolio, especially
since current law may restrict the Fund from selling bonds to any Sponsor. The
bonds will generally trade in the over-the-counter market. The value of the
bonds, and of your investment, may be reduced if trading in bonds is limited or
absent.

CONCENTRATION RISK

When a certain type of bond makes up 25% or more of the portfolio, it is said to
be 'concentrated' in that bond type, which makes the Portfolio less diversified.

Here is what you should know about the Connecticut and New York Portfolios'
concentrations in university/college bonds. Payment for these bonds depends on:
o level or amount and diversity of revenue sources;
o availability of endowments and other funds;
o enrollment;
o financial management;
o reputation; and
o for public institutions, the financial condition of the government and its
educational policies.

Here is what you should know about the New Jersey Portfolio's concentration in
general obligation bonds.
o general obligation bonds are backed by the issuer's pledge of its full
faith, credit and taxing power;

21
<PAGE>
o but the taxing power of any government issuer may be limited by provisions
of the state constitution or laws as well as political and economic
considerations; and
o an issuer's credit can be negatively affected by various factors, including
population decline that erodes the tax base, natural disasters, decline in
industry, limited access to capital markets or heavy reliance on state or
federal aid.

Here is what you should know about the Florida Portfolio's concentration in
refunded bonds. Refunded bonds are typically:
o backed by direct obligations of the U.S. government; or
o in some cases, backed by obligations guaranteed by the U.S. government and
placed in escrow with an independent trustee;
o noncallable prior to maturity; but
o sometimes called for redemption prior to maturity.

Here is what you should know about the Florida, New Jersey and New York
Portfolios' concentrations in hospital and health care bonds:
o payment for these bonds depends on revenues from private third-party payors
and government programs, including Medicare and Medicaid, which have
generally undertaken cost containment measures to limit payments to health
care providers;
o hospitals face increasing competition resulting from hospital mergers and
affiliations;
o hospitals need to reduce costs as HMOs increase market penetration and
hospital supply and drug companies raise prices; and
o hospitals and health care providers are subject to various legal claims by
patients and others and are adversely affected by increasing costs of
insurance.
o many hospitals are aggressively buying physician practices and assuming
risk contracts to gain market share. If revenues do not increase
accordingly, this practice could reduce profits.
o Medicare is changing its reimbursement system for nursing homes. Many
nursing home providers are not sure how they will be treated. In many
cases, the providers may receive lower reimbursements and these would have
to cut expenses to maintain profitability.
o most retirement/nursing home providers rely on entrance fees for operating
revenues. If people live longer than expected and turnover is lower than
budgeted, operating revenues would be adversely affected by less than
expected entrance fees.

Changes to the portfolio from bond redemptions, maturities and sales may affect
the Fund's concentrations over time.

STATE CONCENTRATION RISK

CALIFORNIA RISKS

Generally

From the late 1980s through the early 1990s, an economic recession eroded
California's revenue base. At the same time rapid population growth caused State
expenditures to exceed budget appropriations.

o As a result California experienced a period of sustained budget imbalance.

o Since that time the California economy has improved and the extreme
budgetary pressures have begun to lessen.

22
<PAGE>
State Government

The 1997-98 Budget Act allocated a State budget of approximately $66.9 Billion
and contains no tax increases or reductions. Despite this somewhat improved
state, California's budget is still subject to certain unforeseeable events. For
example:

o In December, 1994, Orange County and its investment pool filed for
bankruptcy. While a settlement has been reached, the full impact on the
State and Orange County is still unknown.

o California faces constant fluctuations in other expenses (including health
and welfare caseloads, property tax receipts, federal funding and natural
disaster relief) that will undoubtedly create new budgetary pressure and
reduce issuers' ability to pay their debts.

o California's general obligation bonds are currently rated A1 by Moody's and
A+ by Standard & Poor's.

Other Risks

Issuers' ability to make payments on bonds (and the remedies available to
bondholders) could also be adversely affected by the following constraints:

o Certain provisions of California's Constitution, laws and regulatory system
contain tax, spending and appropriations limits and prohibit certain new
taxes.

o Certain other California laws subject the users of bond proceeds to strict
rules and limits regarding revenue repayment.

o Bonds of healthcare institutions which are subject to the strict rules and
limits regarding reimbursement payments of California's Medi-Cal program
for health care services to welfare recipients and bonds secured by liens
on real property are two of the types of bonds affected by these
provisions.

CONNECTICUT RISKS

Generally

Connecticut has experienced a variety of economic problems in the last several
years including:

o manufacturing, historically the state's most important activity, has
employed fewer and fewer poeple over the last 10 years;

o large cuts in defense spending threaten defense-related business, which has
traditionally represented a big part of the state's manufacturing
activity; and

o unemployment and poverty are high in certain parts of the state, even
though unemployment state-wide is below the national average.

State and Local Government

Connecticut's state and local governments have also experienced financial
difficulties for several years. For example:

o the state's General Fund had operating deficits for several years in the
late 1980s and early 1990s. Since 1991, however, the General Fund has had
operating surpluses;

o the state issued notes in 1991 to fund its accumulated deficit. The notes
were originally supposed to be paid by 1996, but they were rescheduled, so
that they will be repaid by 1999; and

o Connecticut has several of the nation's poorest and most financially
troubled cities, including Bridgeport, which filed for bankruptcy in 1991,
and its capital city of Hartford.

Local governments in Connecticut receive tax revenue only from taxes on real
estate and personal property, which makes it hard for them to raise additional
tax revenue. Both Connecticut and its cities depend heavily on federal aid, and

23
<PAGE>
the cities also depend on a significant amount of state aid. Both the state and
its cities could be hurt by any future reduction in the amount of such aid.

Connecticut's general obligation bonds are rated AA by Standard & Poor's, Aa3 by
Moody's, and AA by Fitch.

FLORIDA RISKS

Generally

Florida's financial condition is affected by numerous national, economic, social
and environmental policies and conditions. For example:

o south Florida is heavily involved with foreign tourism, trade and
investment capital. As a result, the region is susceptible to international
trade and currency imbalances and economic problems in Central and South
America;

o central and northern Florida are more vulnerable to agricultural problems,
such as crop failures or severe weather conditions, especially in the
citrus and sugar industries; and

o the state as a whole is also very dependent on tourism and construction.

State and Local Government

The state of Florida and its local governments are restricted in their ability
to raise taxes and incur debts. These restrictions limit their ability to
generate revenue, and so could hurt their ability to pay debts.

General obligations of the state are rated Aa2 by Moody's, AA+ by Standard &
Poor's and AA by Fitch.

NEW JERSEY RISKS

State and Local Government

Certain features of New Jersey law could affect the repayment of debt:

o the State of New Jersey and its agencies and public authorities issue
general obligation bonds, which are secured by the full faith and credit of
the state, backed by its taxing authority, without recourse to specific
sources of revenue, therefore, any liability to increase taxes could
impair the state's ability to repay debt; and

o the state is required by law to maintain a balanced budget, and state
spending for any given municipality or county cannot increase by more than
5% per year. This limit could make it harder for any particular county or
municipality to repay its debts.

In recent years the state budget's main expenditures have been

o elementary and secondary education, and

o state agencies and programs, including police and corrections facilities,
higher education, and environmental protection.

The state's general obligations are rated Aa1 by Moody's and AA+ by Standard &
Poor's.

NEW YORK RISKS

Generally

For decades, New York's economy has trailed the rest of the nation. Both the
state and New York City have experienced long-term structural imbalances between
revenues and expenses, and have repeatedly relied substantially on non-recurring
measures to achieve budget balance. The pressures that contribute to budgetary
problems at both the state and local level include:

o the high combined state and local tax burden;

o a decline in manufacturing jobs, leading to above-average unemployment;

24
<PAGE>
o sensitivity to the financial services industry; and

o dependence on federal aid.

State Government

The State government frequently has difficulty approving budgets on time. Budget
gaps of $1 billion and $4 billion are projected for the next two years. The
State's general obligation bonds are rated A by Standard & Poor's and A2 by
Moody's. There is $37 billion of state-related debt outstanding.

New York City Government

Even though the City had budget surpluses each year from 1981, budget gaps of $2
billion are projected for each of the next three years. New York City faces
fiscal pressures from:

o aging public facilities that need repair or replacement;

o welfare and medical costs;

o expiring labor contracts; and

o a high and increasing debt burden.

The City requires substantial state aid, and its fiscal strength depends heavily
on the securities industry. Its general obligation bonds are rated A-by Standard
& Poor's and A3 by Moody's.

BOND QUALITY RISK

A reduction in a bond's rating may decrease its value and, indirectly, the value
of your investment in the Fund.

INSURANCE RELATED RISK

Some bonds are backed by insurance companies (as shown under Portfolios).
Insurance policies generally make payments only according to a bond's original
payment schedule and do not make early payments when a bond defaults or becomes
taxable. Although the federal government does not regulate the insurance
business, various state laws and federal initiatives and tax law changes could
significantly affect the insurance business. The claims-paying ability of the
insurance companies is generally rated A or better by Standard & Poor's or
another nationally recognized rating organization. The insurance company ratings
are subject to change at any time at the discretion of the rating agencies.

LITIGATION AND LEGISLATION RISKS

We do not know of any pending litigation that might have a material adverse
effect upon the Fund.

Future tax legislation could affect the value of the portfolio by:
o limiting real property taxes,
o reducing tax rates,
o imposing a flat or other form of tax, or
o exempting investment income from tax.

SELLING OR EXCHANGING UNITS

You can sell your units at any time for a price based on net asset value. Your
net asset value is calculated each business day by:
o adding the value of the bonds, net accrued interest, cash and any other
Fund assets;
o subtracting accrued but unpaid Fund expenses, unreimbursed Trustee
advances, cash held to buy back units or for distribution to investors and
any other Fund liabilities; and
o dividing the result by the number of outstanding units.

Your net asset value when you sell may be more or less than your cost because of
sales fees, market movements and changes in the portfolio.

If you sell your units before the final deferred sales fee installment, the
amount of any remaining installments will be deducted from your proceeds.

25
<PAGE>
SPONSORS' SECONDARY MARKET

While we are not obligated to do so, we will buy back units at net asset value
without any other fee or charge other than any remaining deferred sales charge.
We may resell the units to other buyers or to the Trustee. You should consult
your financial professional for current market prices to determine if other
broker-dealers or banks are offering higher prices.

We have maintained the secondary market continuously for over 25 years, but we
could discontinue it without prior notice for any business reason.

SELLING UNITS TO THE TRUSTEE

Regardless of whether we maintain a secondary market, you can sell your units to
the Trustee at any time by sending the Trustee a letter (with any outstanding
certificates if you hold Unit certificates). You must properly endorse your
certificates (or execute a written transfer instrument with signatures
guaranteed by an eligible institution). Sometimes, additional documents are
needed such as a trust document, certificate of corporate authority, certificate
of death or appointment as executor, administrator or guardian.

Within seven days after your request and the necessary documents are received,
the Trustee will mail a check to you. Contact the Trustee for additional
information.

As long as we are maintaining a secondary market, the Trustee will sell your
units to us at a price based on net asset value. If there is no secondary
market, the Trustee may sell your units in the over-the-counter market for a
higher price, but it is not obligated to do so. In that case, you will receive
the net proceeds of the sale.

If the Fund does not have cash available to pay you for units you are selling,
the agent for the Sponsors will select bonds to be sold. Bonds will be selected
based on market and credit factors. These sales could be made at times when the
bonds would not otherwise be sold and may result in your receiving less than the
unit par value and also reduce the size and diversity of the Fund.

If you acquire 25% or more of the outstanding units of the Fund and you sell
units with a value exceeding $250,000, the Trustee may choose to pay you 'in
kind' by distributing bonds and cash with a total value equal to the price of
those units. The Trustee will try to distribute bonds in the portfolio pro rata,
but it reserves the right to distribute only one or a few bonds. The Trustee
will act as your agent in an in kind distribution and will either hold the bonds
for your account or sell them as you instruct. You must pay any transaction
costs as well as transfer and ongoing custodial fees on sales of bonds
distributed in kind.

There could be a delay in paying you for your units:
o if the New York Stock Exchange is closed (other than customary weekend and
holiday closings);
o if the SEC determines that trading on the New York Stock Exchange is
restricted or that an emergency exists making sale or evaluation of the
bonds not reasonably practicable; and
o for any other period permitted by SEC order.

EXCHANGE OPTION

You may exchange units of certain Defined Asset Funds for units of this Fund at
a maximum

26
<PAGE>
exchange fee of 1.90%. You may exchange units of this Fund for units of certain
other Defined Asset Funds at a reduced sales fee if your investment goals
change. To exchange units, you should talk to your financial professional about
what funds are exchangeable, suitable and currently available.

Normally, an exchange is taxable and you must recognize any gain or loss on the
exchange. However, the IRS may try to disallow a loss if the portfolios of the
two funds are not materially different; you should consult your own tax adviser.

We may amend or terminate this exchange option at any time without notice.

HOW THE FUND WORKS

PRICING

The price of a unit includes interest accrued on the bonds, less expenses, from
the initial most recent Record Day up to, but not including, the settlement
date, which is usually three business days after the purchase date of the unit.

A portion of the price of a unit consists of cash so that the Trustee can
provide you with regular monthly income. When you sell your units you will
receive your share of this cash.

In addition, as with mutual funds, the Fund (and therefore the investors) pay
all or some of the costs of organizing the Fund including:
o cost of initial preparation of legal documents;
o federal and state registration fees;
o initial fees and expenses of the Trustee;
o initial audit; and
o legal expenses and other out-of-pocket expenses.

EVALUATIONS

An independent Evaluator values the bonds on each business day (excluding
Saturdays, Sundays and the following holidays as observed by the New York Stock
Exchange: New Year's Day, Presidents' Day, Martin Luther King, Jr. Day, Good
Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas).
Bond values are based on current bid or offer prices for the bonds or comparable
bonds. In the past, the difference between bid and offer prices of publicly
offered tax-exempt bonds has ranged from 0.5% of face amount on actively traded
issues to 3.5% on inactively traded issues; the difference has averaged between
1 and 2%.

INCOME

The Trustee credits interest to an Income Account and other receipts to a
Capital Account. The Trustee may establish a Reserve Account by withdrawing from
these accounts amounts it considers appropriate to pay any material liability.
These accounts do not bear interest.

EXPENSES

The Trustee is paid monthly. It also benefits when it holds cash for the Fund in
non-interest bearing accounts. The Trustee may also receive additional amounts:
o to reimburse the Trustee for the Fund's operating expenses;
o for extraordinary services and costs of indemnifying the Trustee and the
Sponsors;
o costs of actions taken to protect the Fund and other legal fees and
expenses;
o expenses for keeping the Fund's registration statement current; and
o Fund termination expenses and any governmental charges.

27
<PAGE>
The Sponsors are currently reimbursed up to 45 cents per $1,000 face amount
annually for providing portfolio supervisory, bookkeeping and administrative
services and for any other expenses properly chargeable to the Fund. Legal,
typesetting, electronic filing and regulatory filing fees and expenses
associated with updating the Portfolio's registration statement yearly are also
now chargeable to the Portfolio. While this fee may exceed the amount of these
costs and expenses attributable to this Fund, the total of these fees for all
Series of Defined Asset Funds will not exceed the aggregate amount attributable
to all of these Series for any calendar year. The Fund also pays the Evaluator's
fees.

The Trustee's, Sponsors' and Evaluator's fees may be adjusted for inflation
without investors' approval.

Any quarterly deferred sales fees you owe are paid with interest and principal
from certain bonds. If these amounts are not enough, the rest will be paid out
of distributitons to you from the Fund's Capital and Income Accounts.

The Sponsors will pay advertising and selling expenses at no charge to the Fund.
If Fund expenses exceed initial estimates, the Fund will owe the excess. The
Trustee has a lien on Fund assets to secure reimbursement of Fund expenses and
may sell bonds if cash is not available.

PORTFOLIO CHANGES

The Sponsors and Trustee are not liable for any default or defect in a bond; if
a contract to buy any bond.

Unlike a mutual fund, the portfolio is designed to remain intact and we may keep
bonds in the portfolio even if their credit quality declines or other adverse
financial circumstances occur. However, we may sell a bond in certain cases if
we believe that certain adverse credit conditions exist or if a bond becomes
taxable.

If we maintain a secondary market in units but are unable to sell the units that
we buy in the secondary market, we will redeem units, which will affect the size
and composition of the portfolio. Units offered in the secondary market may not
represent the same face amount of bonds that they did originally.

We decide whether or not to offer units for sale that we acquire in the
secondary market after reviewing:
o diversity of the portfolio;
o size of the Fund relative to its original size;
o ratio of Fund expenses to income;
o current and long-term returns;
o degree to which units may be selling at a premium over par; and
o cost of maintaining a current prospectus.

FUND TERMINATION

The Fund will terminate following the stated maturity or sale of the last bond
in the portfolio. The Fund may also terminate earlier with the consent of
investors holding 51% of the units or if total assets of the Fund have fallen
below 40% of the face amount of bonds deposited. We will decide whether to
terminate the Fund early based on the same factors used in deciding whether or
not to offer units in the secondary market.

When the Fund is about to terminate you will receive a notice, and you will be
unable to sell your units after that time. On or shortly before termination, we
will sell any remaining bonds, and you will receive your final distribution. Any
bond that cannot be sold at a reasonable price may continue to be held by the
Trustee in a liquidating trust pending its final sale.

28
<PAGE>
You will pay your share of the expenses associated with termination, including
brokerage costs in selling bonds. This may reduce the amount you receive as your
final distribution.

CERTIFICATES

Certificates for units are issued on request. You may transfer certificates by
complying with the requirements for redeeming certificates, described above. You
can replace lost or mutilated certificates by delivering satisfactory indemnity
and paying the associated costs.

TRUST INDENTURE

The Fund is a 'unit investment trust' governed by a Trust Indenture, a contract
among the Sponsors, the Trustee and the Evaluator, which sets forth their duties
and obligations and your rights. A copy of the Indenture is available to you on
request to the Trustee. The following summarizes certain provisions of the
Indenture.

The Sponsors and the Trustee may amend the Indenture without your consent:
o to cure ambiguities;
o to correct or supplement any defective or inconsistent provision;
o to make any amendment required by any governmental agency; or
o to make other changes determined not to be materially adverse to your best
interest (as determined by the Sponsors).

Investors holding 51% of the units may amend the Indenture. Every investor must
consent to any amendment that changes the 51% requirement. No amendment may
reduce your interest in the Fund without your written consent.

The Trustee may resign by notifying the Sponsors. The Sponsors may remove the
Trustee without your consent if:
o it fails to perform its duties and the Sponsors determine that its
replacement is in your best interest; or
o it becomes incapable of acting or bankrupt or its affairs are taken over by
public authorities.
Investors holding 51% of the units may remove the Trustee. The Evaluator may
resign or be removed by the Sponsors and the Trustee without the consent of
investors. The resignation or removal of either becomes effective when a
successor accepts appointment. The Sponsors will try to appoint a successor
promptly; however, if no successor has accepted within 30 days after notice of
resignation, the resigning Trustee or Evaluator may petition a court to appoint
a successor.

Any Sponsor may resign as long as one Sponsor with a net worth of $2 million
remains and agrees to the resignation. The remaining Sponsors and the Trustee
may appoint a replacement. If there is only one Sponsor and it fails to perform
its duties or becomes bankrupt the Trustee may:
o remove it and appoint a replacement Sponsor;
o liquidate the Fund; or
o continue to act as Trustee without a Sponsor.

Merrill Lynch, Pierce, Fenner & Smith Incorporated acts as agent for the
Sponsors.

The Trust Indenture contains customary provisions limiting the liability of the
Trustee, the Sponsors and the Evaluator.

LEGAL OPINION

Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York 10017, as
counsel for the Sponsors, has given an opinion that the units are validly
issued. Special counsel located in the

29
<PAGE>
relevant states have given state and local tax opinions.

AUDITORS

Deloitte & Touche LLP, 2 World Financial Center, New York, New York 10281,
independent accountants, audited the Statements of Condition included in this
prospectus.

SPONSORS

The Sponsors are:

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (a wholly-owned subsidiary of
Merrill Lynch & Co., Inc.)
P.O. Box 9051,
Princeton, NJ 08543-9051

SALOMON SMITH BARNEY INC. (an indirectly wholly-owned subsidiary of Citigroup
Inc.)
388 Greenwich Street--23rd Floor,
New York, NY 10013
DEAN WITTER REYNOLDS INC. (a principal operating subsidiary of Morgan Stanley
Dean Witter & Co.)
Two World Trade Center--59th Floor,
New York, NY 10048
PRUDENTIAL SECURITIES INCORPORATED (an
indirect wholly-owned subsidiary of the
Prudential Insurance Company of America)
One New York Plaza
New York, NY 10292
PAINEWEBBER INCORPORATED (a wholly-owned subsidiary of PaineWebber Group Inc.)
1285 Avenue of the Americas,
New York, NY 10019

Each Sponsor is a Delaware corporation and it, or its predecessor, has acted as
sponsor to many unit investment trusts. As a registered broker-dealer each
Sponsor buys and sells securities (including investment company shares) for
others (including investment companies) and participates as an underwriter in
various selling groups.

TRUSTEE

The Chase Manhattan Bank, Unit Investment Trust Department, 4 New York
Plaza--6th Floor, New York, New York 10004, is the Trustee.

It is supervised by the Federal Deposit Insurance Corporation, the Board of
Governors of the Federal Reserve System and New York State banking authorities.

UNDERWRITERS' AND SPONSORS' PROFITS

Underwriters receive sales charges when they sell units. The Sponsors also
realized a profit or loss on the initial date of deposit of the bonds. Any cash
made available by you to the Sponsors before the settlement date for those units
may be used in the Sponsors' businesses to the extent permitted by federal law
and may benefit the Sponsors.

A Sponsor or Underwriter may realize profits or sustain losses on bonds in the
Fund which were acquired from underwriting syndicates of which it was a member.

In maintaining a secondary market, the Sponsors will also realize profits or
sustain losses in the amount of any difference between the prices at which they
buy units and the prices at which they resell or redeem them.

PUBLIC DISTRIBUTION

The Sponsors do not intend to qualify units for sale in any foreign countries.
This prospectus does not constitute an offer to sell units in any country where
units cannot lawfully be sold.

CODE OF ETHICS

Merrill Lynch, as agent for the Sponsors, has adopted a code of ethics requiring
preclearance

30
<PAGE>
and reporting of personal securities transactions by its employees with access
to information on portfolio transactions. The goal of the code is to prevent
fraud, deception or misconduct against the Fund and to provide reasonable
standards of conduct.

YEAR 2000 ISSUES

Many computer systems were designed in such a way that they may be unable to
distinguish between the year 2000 and the year 1900 (commonly known as the 'Year
2000 Problem'). We do not expect that the computer system changes necessary to
prepare for the Year 2000 will cause any major operational difficulties for the
Fund. The Year 2000 Problem may adversely affect the issuers of the bonds
contained in a Portfolio, but we cannot predict whether any impact will be
material to the Fund as a whole.

TAXES

The following summary describes some of the important income tax consequences of
holding units. It assumes that you are not a dealer, financial institution,
insurance company or other investor with special circumstances. You should
consult your own tax adviser about your particular circumstances.

At the date of issue of each bond, counsel for the issuer delivered an opinion
to the effect that interest on the bond is exempt from regular federal income
tax. However, interest may be subject to state and local taxes and federal
alternative minimum tax. Neither we nor our counsel have reviewed the issuance
of the bonds, related proceedings or the basis for the opinions of counsel for
the issuers. We cannot assure you that the issuer (or other users) have complied
or will comply with any requirements necessary for a bond to be tax-exempt. If
any of the bonds were determined not to be tax-exempt, you could be required to
pay income tax for current and prior years, and if the Fund were to sell the
bond, it might have to sell it at a substantial discount.

In the opinion of our counsel, under existing law:

GENERAL TREATMENT OF THE FUND AND YOUR INVESTMENT

The Fund will not be taxed as a corporation for federal income tax purposes, and
you will be considered to own directly your share of each bond in the Fund.

INCOME OR LOSS UPON DISPOSITION

When all or part of your share of a bond is disposed of (for example, when the
Fund sells, exchanges or redeems a bond or when you sell or exchange your
units), you will generally recognize capital gain or loss. Your gain, however,
will generally be ordinary income to the extent of any accrued 'market
discount'. Generally you will have market discount to the extent that your basis
in a bond when you purchase a unit is less than its stated redemption price at
maturity (or, if it is an original issue discount bond, the issue price
increased by original issue discount that has accrued on the bond before your
purchase). You should consult your tax adviser in this regard.

If your net long-term capital gains exceed your net short-term capital losses,
the excess may be subject to tax at a lower rate than ordinary income. Any
capital gain from the Fund will be long-term if you are considered to have held
your investment on each bond for more than one year and short-term if you held
it for one year or less. If you are an individual and sell your units after
holding them for more than one year, you may be entitled to a 20% maximum
federal tax rate on any resulting gains. Consult your tax adviser in

31
<PAGE>
this regard. Because the deductibility of capital losses is subject to
limitations, you may not be able to deduct all of your capital losses.

YOUR BASIS IN THE BONDS

Your aggregate basis in the bonds will be equal to the cost of your units,
including any sales charges and the organizational expenses you pay, adjusted to
reflect any accruals of 'original issue discount,' 'acquisition premium' and
'bond premium'. You should consult your tax adviser in this regard.

EXPENSES

If you are not a corporate investor, you will not be entitled to a deduction for
your share of fees and expenses of the Fund. Also, if you borrowed money in
order to purchase or carry your units, you will not be able to deduct the
interest on this borrowing for federal income tax purposes. The IRS may treat
your purchase of units as made with borrowed money even if the money is not
directly traceable to the purchase of units.

STATE AND LOCAL TAXES

Under the income tax laws of the State and City of New York, the Fund will not
be taxed as a corporation. If you are a New York taxpayer, your income from the
Fund will not be tax-exempt in New York except to the extent that the income is
earned on bonds that are tax-exempt for New York purposes. Depending on where
you live, your income from the Fund may be subject to state and local taxation.
You should consult your tax adviser in this regard.

CALIFORNIA TAXES

In the opinion of O'Melveny & Myers LLP, Los Angeles, California, special
counsel on California tax matters:

Under the income tax laws of the State of California, the Trust will not be
taxed as a corporation and you will be considered to own directly your share of
each bond of the Trust. If you are a California taxpayer, your share of the
income from the bonds of the Trust will not be tax-exempt in California except
for California personal income tax purposes and only to the extent that the
income is earned on bonds that are exempt for such purposes. If you are a
California taxpayer and all or part of your share of a bond is disposed of (for
example, when a bond is sold, exchanged or redeemed at maturity or you sell or
exchange your units), you will recognize gain or loss for California tax
purposes. Depending on where you live, your income from the Trust may be subject
to state and local taxation. You should consult your tax advisor in this regard.

CONNECTICUT TAXES

In the opinion of Day, Berry & Howard LLP, Hartford, Connecticut, special
counsel on Connecticut tax matters:

Under the income tax laws of the State of Connecticut, the Fund will not be
taxed. If you are an individual, trust or estate that is subject to the
Connecticut income tax, you will not be taxed on your share of the interest
derived by the Fund from those bonds that are tax-exempt for Connecticut income
tax purposes. In addition, if you hold your units of the Fund as a capital
asset, you will not recognize either gain or loss if the Fund enters into a
transaction in which it is treated for federal income tax purposes as having
sold a bond that is issued by an issuer in Connecticut and is tax-exempt for
Connecticut income tax purposes, and you may not have to recognize gain or loss
to the extent attributable to a unit's share of any such bonds if you sell,
exchange or redeem the unit. You should consult

32
<PAGE>
your tax adviser in this regard. In all other instances, you will recognize gain
or loss, in the event either the Fund enters into a transaction involving a bond
held by it or you sell, exchange or redeem a unit of the Fund, to the same
extent that you recognize gain or loss therefrom for Federal income tax
purposes.

In the case of an entity subject to the Connecticut corporation business tax,
its share of all income derived from units of the Fund or their ownership will
be subject to that Connecticut tax.

FLORIDA TAXES

In the opinion of Greenberg, Traurig, P.A., Miami, Florida, special counsel on
Florida tax matters:

Under the income tax laws of the State of Florida, the Fund will not be taxed as
a corporation. Florida imposes an income tax on corporations but does not impose
a personal income tax. Accordingly, if you are an individual taxpayer your
income from the Fund will not be subject to tax in Florida. However, if you are
an entity that is normally taxed as a corporation, your income from the fund
will not be exempt from tax in Florida and special rules for taxation apply
depending on the type of entity. You should consult your tax adviser in this
regard.

Florida also imposes a tax on intangible personal property, such as stocks,
bonds, notes and units in trusts. The tax is imposed on Florida taxpayers as of
January 1st of each year. Florida exempts certain types of bonds and debt
obligations from this tax. Your units will be exempt from the intangible
personal property tax as long as the Fund invests exclusively in bonds and other
debt obligations that are tax-exempt for Florida purposes.

NEW JERSEY TAXES

In the opinion of Drinker Biddle & Reath LLP, Philadelphia, Pennsylvania,
special counsel on New Jersey tax matters:

The Fund will not be taxed as a corporation under the current income tax laws of
the State of New Jersey. Your income from the Fund may be subject to taxation
depending on where you live. If you are a New Jersey taxpayer your income from
the Fund (including gains on sales of bonds by the Fund) and gains on sales of
units by you will be tax-exempt to the extent that income and gains are earned
on bonds that are tax-exempt for New Jersey purposes. You should consult your
tax adviser as to the consequences to you with respect to any investment you
make in the Fund.

SUPPLEMENTAL INFORMATION

You can receive at no cost supplemental information about the Fund by calling
the Trustee. The supplemental information includes more detailed risk disclosure
about the types of bonds that may be in the Fund's portfolios, general risk
disclosure concerning any insurance securing certain bonds, and general
information about the structure and operation of the Fund. The supplemental
information is also available from the SEC.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (CALIFORNIA INSURED, CONNECTICUT,
FLORIDA INSURED, NEW JERSEY INSURED AND NEW YORK TRUSTS),
DEFINED ASSET FUNDS

REPORT OF INDEPENDENT ACCOUNTANTS

The Sponsors, Trustee and Holders
of Municipal Investment Trust Fund, Multistate Series - 309
(California Insured, Connecticut, Florida Insured, New Jersey
Insured and New York Trusts),
Defined Asset Funds:

We have audited the accompanying statements of condition of
Municipal Investment Trust Fund, Multistate Series - 309
(California Insured, Connecticut, Florida Insured, New Jersey
Insured and New York Trusts), Defined Asset Funds,
including the portfolios, as of March 31, 1999 and the related
statements of operations and of changes in net assets for the
year ended March 31, 1999 and the period April 18, 1997 to
March 31, 1998. These financial statements are the responsibility
of the Trustee. Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with generally
accepted auditing standards. 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. Securities owned at March 31,
1999, as shown in such portfolios, were confirmed to us by
The Chase Manhattan Bank, the Trustee. An audit also includes
assessing the accounting principles used and significant
estimates made by the Trustee, as well as evaluating the
overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial
position of Municipal Investment Trust Fund, Multistate
Series - 309 (California Insured, Connecticut, Florida Insured,
New Jersey Insured and New York Trusts), Defined Asset
Funds, at March 31, 1999 and the results of their operations
and changes in their net assets for the above-stated periods in
conformity with generally accepted accounting principles.

DELOITTE & TOUCHE LLP

New York, N.Y.
June 29, 1999

D - 1.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (CALIFORNIA INSURED TRUST),
DEFINED ASSET FUNDS

STATEMENT OF CONDITION
As of March 31, 1999

<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities -
{ 20} at value (cost $ 4,666,652 )(Note 1)......... $ 5,088,535
{ 36} Accrued interest ............................... 61,856
Accrued interest on Segregated Bonds (Note 5) .. 1,487
{ 32} Cash - income .................................. 29,646
Cash - income on Segregated Bonds .............. 7,004
{ 34} Cash - principal ............................... 44,863
Deferred organization costs (Note 6) ........... 2,905
-----------
{ 40} Total trust property ......................... 5,236,296

LESS LIABILITIES:
{ 50} Income advance from Trustee..................... $ 76,027
Deferred sales charge (Note 5) ................. 52,372
{143} Accrued Sponsors' fees ......................... 542
Other liabilities (Note 6) ..................... 2,905 131,846
----------- -----------

NET ASSETS, REPRESENTED BY:
{ 80} 4,714 units of fractional undivided
{ 80} interest outstanding (Note 3)................ 5,089,517

{105} Undistributed net investment income ............ 14,933 $ 5,104,450
----------- ===========

{130}UNIT VALUE ($ 5,104,450 / 4,714 units )........... $ 1,082.83
===========

</TABLE>

See Notes to Financial Statements.

D - 2.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (CALIFORNIA INSURED TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
April 18, 1997
Year Ended to
March 31, March 31,
1999 1998
---- ----

<S> <C> <C>
INVESTMENT INCOME:
{ 10} Interest income ........................ $ 267,608 $ 269,286
Interest income on Segregated
Bonds (Note 5) ....................... 6,852 9,132
{ 20} Trustee's fees and expenses ............ (6,390) (8,393)
{ 30} Sponsors' fees ......................... (2,272) (2,224)
------------------------------
{ 40} Net investment income .................. 265,798 267,801
------------------------------

REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Realized gain on
{ 50} securities sold or redeemed .......... 11,661 7,076
Unrealized appreciation
{ 60} of investments ....................... 91,240 330,643
------------------------------
Net realized and unrealized
{ 70} gain on investments ................. 102,901 337,719
------------------------------

NET INCREASE IN NET ASSETS
{ 80} RESULTING FROM OPERATIONS .............. $ 368,699 $ 605,520
==============================

</TABLE>

See Notes to Financial Statements.
D - 3.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (CALIFORNIA INSURED TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
April 18, 1997
Year Ended to
March 31, March 31,
1999 1998
---- ----

<S> <C> <C>
OPERATIONS:
{ 10} Net investment income .................. $ 265,798 $ 267,801
Realized gain on
{ 20} securities sold or redeemed .......... 11,661 7,076
Unrealized appreciation
{ 30} of investments ....................... 91,240 330,643
------------------------------
Net increase in net assets
{ 40} resulting from operations ............ 368,699 605,520
------------------------------
DISTRIBUTIONS TO HOLDERS (Note 2):
{ 50} Income ................................ (259,024) (242,691)
{ 60} Principal .............................. (523)
------------------------------
{ 70} Total distributions .................... (259,547) (242,691)
------------------------------
SHARE TRANSACTIONS:
Deferred sales charge (Note 5):
Income ............................... (7,493) (9,132)
Principal ............................ (69,798) (52,349)

{ 82} Redemption amounts:
Income ............................... (447) (520)
{ 83} Principal ............................ (204,492) (145,100)
------------------------------
{ 84} Net share transactions ................. (282,230) (207,101)
------------------------------

{ 90}NET INCREASE (DECREASE) IN NET ASSETS .... (173,078) 155,728

{100}NET ASSETS AT BEGINNING OF PERIOD ........ 5,277,528 5,121,800
------------------------------
{110}NET ASSETS AT END OF PERIOD .............. $ 5,104,450 $ 5,277,528
==============================
PER UNIT:
Income distributions during
{120} period ............................... $ 53.93 $ 48.20
==============================
Principal distributions during
{130} period ............................... $ 0.11
==================
Net asset value at end of
{140} period ............................... $ 1,082.83 $ 1,075.07
==============================
TRUST UNITS:
{ 83} Redeemed during period ................. 195 139
{150} Outstanding at end of period ........... 4,714 4,909
==============================
</TABLE>
See Notes to Financial Statements.

D - 4.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (CALIFORNIA INSURED TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES

The Fund is registered under the Investment Company Act of 1940 as a Unit
Investment Trust. The following is a summary of significant accounting
policies consistently followed by the Fund in the preparation of its
financial statements. The policies are in conformity with generally accepted
accounting principles.

(A) Securities are stated at value as determined by the
Evaluator based on bid side evaluations for the securities,
except that value on April 18, 1997 was based upon offering
side evaluations at April 16, 1997, the day prior to the
Date of Deposit. Cost of securities at April 18, 1997 was
also based on such offering side evaluations.

(B) The Fund is not subject to income taxes. Accordingly, no
provision for such taxes is required.

2. DISTRIBUTIONS

A distribution of net investment income is made to Holders each month.
Receipts other than interest, after deductions for redemptions and applicable
expenses, are also distributed periodically.

3. NET CAPITAL
<TABLE>
<S> <C>
{ 10} Cost of 4,714 units at Date of Deposit ..................... $ 4,782,917
Transfer of capital to interest on Segregated Bonds (Note 5) 15,984
{ 31} Redemptions of units - net cost of 334 units redeemed
{143} less redemption amounts (principal)....................... (10,709)
Deferred sales charge (Note 5) ............................. (138,772)
{ 40} Realized gain on securities sold or redeemed ............... 18,737
{ 50} Principal distributions .................................... (523)
{ 70} Unrealized appreciation of investments...................... 421,883
-----------

{ 80} Net capital applicable to Holders .......................... $ 5,089,517
===========
</TABLE>
4. INCOME TAXES

As of March 31, 1999, unrealized appreciation of investments, based on cost
for Federal income tax purposes, aggregated $421,883, all of which related
to appreciated securities. The cost of investment securities for Federal
income tax purposes was $4,666,652 at March 31, 1999.

D - 5.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (CALIFORNIA INSURED TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

5. DEFERRED SALES CHARGE

$145,000 face amount of City of Rancho Mirage, CA, Jt. Pwrs. Fin. Auth., Certs.
of Part., Eisenhower Med. Ctr., Ser. 1997 A, have been segregated to fund the
deferred sales charges. The sales charges are being paid for with the interest
received and by periodic sales or maturity of these bonds, as well as principal
proceeds received in conjunction with the disposition on the unsegregated bonds
in the portfolio. A deferred sales charge of $3.75 per Unit is charged on a
quarterly basis, and paid to the Sponsors periodically by the Trustee on behalf
of the Holders, up to an aggregate of $45 per Unit over the first three years
of the life of the Fund. Should a Holder redeem Units prior to the third
anniversary of the Fund, the remaining balance of the deferred sales charge will
be charged.

6. DEFERRED ORGANIZATION COSTS

Deferred organization costs are being amortized over five years. Included in
"Other liabilities" is $2,905 payable to the Trustee for reimbursement of costs
related to the organization of the Trust.

D - 6.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (CALIFORNIA TRUST) (INSURED),
DEFINED ASSET FUNDS

PORTFOLIO
As of March 31, 1999

Rating of Optional
Portfolio No. and Title of Issues Face Redemption
Securities (1) (4) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
---------- --------- ----------- ----------- ------------ ------------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 California Hlth. Fac. Fin. Auth. Ins. AAA $ 645,000 6.000 % 2025 07/01/06 $ 647,541 $ 697,703
Hlth. Fac. Rfdg. Rev. Bonds (Catholic @ 102.000
Hlth. Care West), Ser. 1996 A (MBIA
Ins.)

2 East Bay Mun. Util. Dist., Alameda and AAA 750,000 5.000 2026 06/01/06 666,068 740,070
Contra Costa Cnty., CA, Wastewater Sys. @ 102.000
Sub. Rev. Rfdg. Bonds, Ser. 1996
(Financial Guaranty Ins.)

3 Contra Costa Cnty., CA, Lafayette AAA 750,000 5.750 2021 08/01/04 745,065 790,133
Elementary Sch. Dist. G.O. Bonds, 1996 @ 101.000
Election Ser. 1997 (MBIA Ins.)

4 Los Angeles Cnty., CA, Santa Monica AAA 750,000 5.750 2020 07/01/05 740,460 800,108
Cmnty. Coll. Dist. G.O. Bonds, 1992 @ 102.000
Election Ser. B (AMBAC Ins.)

5 Menifee Union Sch. Dist., Riverside AAA 725,000 5.750 2025 09/01/06 714,959 776,200
Cnty., CA, Certs. of Part. (Riverside @ 102.000
Cnty. Sch. Fin. Corp.) (FSA Ins.)

6 City of Rancho Mirage, CA, Jt. Pwrs. AAA 75,000 4.200 2000 None 74,110 75,872
Fin. Auth. Certs. of Part., Eisenhower
Med. Ctr., Ser. 1997 A (MBIA Ins.) (6) 70,000 4.000 1999 None 69,413 70,162

7 Ontario-Montclair Sch. Dist., CA, Certs. AAA 325,000 5.625 2017 09/01/07 318,227 347,588
of Part. (1997 Cap. Proj.) (FSA Ins.) @ 102.000

8 Airports Comm. of the City and Cnty. of AAA 710,000 5.650 2024(7) 05/01/06 690,809 790,699
San Francisco, CA, Rev. Bonds (San @ 101.000
Francisco Intl. Arpt.), Second Ser.,
Iss. 12-B (Financial Guaranty Ins.)

----------- --------- ---------
TOTAL $ 4,800,000 $ 4,666,652 $ 5,088,535
=========== ========= =========
</TABLE>

See Notes to Portfolios on Page D - 34.

D - 7.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (CONNECTICUT TRUST),
DEFINED ASSET FUNDS

STATEMENT OF CONDITION
As of March 31, 1999

<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities -
{ 20} at value (cost $ 2,733,176 )(Note 1)......... $ 2,949,462
{ 36} Accrued interest ............................... 39,908
Accrued interest on Segregated Bonds (Note 5) .. 1,911
{ 32} Cash - income .................................. 7,765
Cash - income on Segregated Bonds .............. 8,731
{ 34} Cash - principal ............................... 34,124
Deferred organization costs (Note 6) ........... 1,889
-----------
{ 40} Total trust property ......................... 3,043,790

LESS LIABILITIES:
{ 50} Income advance from Trustee..................... $ 38,537
Deferred sales charge (Note 5) ................. 38,608
Principal payments payable (Segregated Bonds) .. 7,389
{143} Accrued Sponsors' fees ......................... 356
Other liabilities (Note 6) ..................... 1,889 86,779
----------- -----------

NET ASSETS, REPRESENTED BY:
{ 80} 2,742 units of fractional undivided
{ 80} interest outstanding (Note 3)................ 2,948,231

{105} Undistributed net investment income ............ 8,780 $ 2,957,011
----------- ===========

{130}UNIT VALUE ($ 2,957,011 / 2,742 units )........... $ 1,078.41
===========

</TABLE>

See Notes to Financial Statements.

D - 8.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (CONNECTICUT TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
April 18, 1997
Year Ended to
March 31, March 31,
1999 1998
---- ----

<S> <C> <C>
INVESTMENT INCOME:
{ 10} Interest income ........................ $ 177,936 $ 178,212
Interest income on Segregated
Bonds (Note 5) ....................... 5,308 6,863
{ 20} Trustee's fees and expenses ............ (4,810) (6,762)
{ 30} Sponsors' fees ......................... (1,489) (1,448)
------------------------------
{ 40} Net investment income .................. 176,945 176,865
------------------------------

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain on
{ 50} securities sold or redeemed .......... 34,928
Unrealized appreciation (depreciation)
{ 60} of investments ....................... (8,782) 225,068
------------------------------
Net realized and unrealized
{ 70} gain on investments ................. 26,146 225,068
------------------------------

NET INCREASE IN NET ASSETS
{ 80} RESULTING FROM OPERATIONS .............. $ 203,091 $ 401,933
==============================

</TABLE>

See Notes to Financial Statements.

D - 9.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (CONNECTICUT TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
April 18, 1997
Year Ended to
March 31, March 31,
1999 1998
---- ----

<S> <C> <C>
OPERATIONS:
{ 10} Net investment income .................. $ 176,945 $ 176,865
Realized gain on
{ 20} securities sold or redeemed .......... 34,928
Unrealized appreciation (depreciation)
{ 30} of investments ....................... (8,782) 225,068
------------------------------
Net increase in net assets
{ 40} resulting from operations ............ 203,091 401,933
------------------------------

INCOME DISTRIBUTIONS TO
{ 50} HOLDERS (Note 2)....................... (172,756) (159,571)
-------------------------------

SHARE TRANSACTIONS:
Deferred sales charge (Note 5):
Income ............................... (1,529) (6,863)
Principal ............................ (57,826) (30,060)

{ 82} Redemption amounts:
Income ............................... (532)
{ 83} Principal ............................ (574,527)
------------------------------
{ 84} Net share transactions ................. (634,414) (36,923)
------------------------------

{ 90}NET INCREASE (DECREASE) IN NET ASSETS .... (604,079) 205,439

{100}NET ASSETS AT BEGINNING OF PERIOD ........ 3,561,090 3,355,651
------------------------------
{110}NET ASSETS AT END OF PERIOD .............. $ 2,957,011 $ 3,561,090
==============================
PER UNIT:
Income distributions during
{120} period ............................... $ 54.64 $ 48.62
==============================
Net asset value at end of
{140} period ............................... $ 1,078.41 $ 1,085.04
==============================
TRUST UNITS:
{ 83} Redeemed during period ................. 540
{150} Outstanding at end of period ........... 2,742 3,282
==============================
</TABLE>

See Notes to Financial Statements.

D - 10.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (CONNECTICUT TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES

(B) The Fund is not subject to income taxes. Accordingly, no
provision for such taxes is required.

2. DISTRIBUTIONS

A distribution of net investment income is made to Holders each month.
Receipts other than interest, after deductions for redemptions and applicable
expenses, are also distributed periodically.

3. NET CAPITAL
<TABLE>
<S> <C>
{ 10} Cost of 2,742 units at Date of Deposit ..................... $ 2,803,533
Transfer to capital of interest on Segregated Bonds (Note 5) 12,171
{ 31} Redemptions of units - net cost of 540 units redeemed
{143} less redemption amounts (principal)....................... (22,409)
Deferred sales charge (Note 5) ............................. (96,278)
{ 40} Realized gain on securities sold or redeemed ............... 34,928
{ 70} Unrealized appreciation of investments...................... 216,286
-----------

{ 80} Net capital applicable to Holders .......................... $ 2,948,231
===========
</TABLE>
4. INCOME TAXES

As of March 31, 1999, unrealized appreciation of investments, based on cost
for Federal income tax purposes, aggregated $216,286, all of which related
to appreciated securities. The cost of investment securities for Federal
income tax purposes was $2,733,176 at March 31, 1999.

D - 11.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (CONNECTICUT TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

5. DEFERRED SALES CHARGE

$50,000 face amount of the State of Connecticut G.O. Bonds, Ser. 1996 A and
$45,000 face amount of the State of Connecticut Spec. Tax Oblig. Bonds, Trans.
Infrastructure Purp., Ser. 1996 A, have been segregated to fund the deferred
sales charges. The sales charges are being paid for with the interest
received and by periodic sales or maturity of these bonds, as well as principal
proceeds received in conjunction with the disposition on the unsegregated bonds
in the portfolio. A deferred sales charge of $3.75 per Unit is charged on a
quarterly basis, and paid to the Sponsors periodically by the Trustee on behalf
of the Holders, up to an aggregate of $45 per Unit over the first three years of
the life of the Fund. Should a Holder redeem Units prior to the third
anniversary of the Fund, the remaining balance of the deferred sales charge
will be charged.

6. DEFERRED ORGANIZATION COSTS

Deferred organization costs are being amortized over five years. Included in
"Other liabilities" is $1,889 payable to the Trustee for reimbursement of costs
related to the organization of the Trust.

D - 12.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (CONNECTICUT TRUST),
DEFINED ASSET FUNDS

PORTFOLIO
As of March 31, 1999

Rating Optional
Portfolio No. and Title of of Face Redemption
Securities Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
---------- --------- ----------- ----------- ------------ ------------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 Connecticut State Dev. Auth., Wtr. AAA $ 250,000 6.050 % 2029 08/01/04 $ 253,518 $ 272,243
Facs. Rev. Bonds (Bridgeport Hydraulic @ 102.000
Co. Proj.), Ser. 1994 A (MBIA Ins.) (5)

2 Connecticut Hlth. and Educl. Facs. AAA 450,000 5.375 2019 07/01/06 420,921 458,334
Auth., Rev. Bonds, Bridgeport Hosp. @ 102.000
Issue, Ser. C (Connie Less Ins.) (5)

3 State of Connecticut G.O. Bonds, Ser. AA 50,000 5.500 2000 None 51,601 51,657
1996 A (6)

4 State of Connecticut Spec. Tax Oblig. AAA 45,000 4.300 1999 None 45,000 45,096
Bonds, Trans. Infrastructure Purp.,
Ser. 1996 A (Financial Guaranty Ins.)
(5) (6)

5 State of Connecticut Hlth. and Educl. AAA 450,000 6.000 2025 07/01/04 453,366 489,425
Fac. Auth., Rev. Bonds, The Loomis @ 101.500
Chaffee Sch. Issue, Ser. B (MBIA Ins.)
(5)

6 Connecticut Hlth. and Educl. Facs. AAA 460,000 5.500 2027 07/01/07 443,564 481,615
Auth., Rev. Bonds, Connecticut Coll. @ 102.000
Issue, Ser. C-1 (MBIA Ins.) (5)

7 State of Connecticut Hlth. and Educl. AAA 345,000 5.875 2026 07/01/06 345,666 369,219
Facs. Auth., Rev. Bonds, Trinity Coll. @ 102.000
Issue, Ser. E (MBIA Ins.) (5)

8 Connecticut Hsg. Fin. Auth., Hsg. Mtge. AA 500,000 6.000 2021 05/15/07 502,100 533,980
Fin. Prog. Bonds, Subseries A-1 @ 102.000

9 Puerto Rico Hwy. and Trans. Auth., Hwy. A 250,000 5.000 2036 07/01/16 217,440 247,893
Rev. Bonds, Ser. Y @ 100.000

----------- --------- ---------
TOTAL $ 2,800,000 $ 2,733,176 $ 2,949,462
=========== ========= =========

</TABLE>

See Notes to Portfolios on Page D - 34.
D - 13.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (FLORIDA INSURED TRUST),
DEFINED ASSET FUNDS

STATEMENT OF CONDITION
As of March 31, 1999

<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities -
{ 20} at value (cost $ 3,122,936 )(Note 1)......... $ 3,420,434
{ 36} Accrued interest ............................... 71,579
Accrued interest on Segregated Bonds (Note 5) .. 1,067
Cash - income .................................. 1,148
Cash - income on Segregated Bonds .............. 4,724
{ 34} Cash - principal ............................... 32,691
Deferred organization costs (Note 6) ........... 2,033
-----------
{ 40} Total trust property ......................... 3,533,676

LESS LIABILITIES:
{ 50} Income advance from Trustee..................... $ 62,447
Deferred sales charge (Note 5) ................. 29,309
Principal payments payable (Segregated Bonds) .. 3,744
{143} Accrued Sponsors' fees ......................... 373
Other liabilities (Note 6) ..................... 2,033 97,906
----------- -----------

NET ASSETS, REPRESENTED BY:
{ 80} 3,195 units of fractional undivided
{ 80} interest outstanding (Note 3)................ 3,425,863

{105} Undistributed net investment income ............ 9,907 $ 3,435,770
----------- ===========

{130}UNIT VALUE ($ 3,435,770 / 3,195 units )........... $ 1,075.36
===========

</TABLE>

See Notes to Financial Statements.

D - 14.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (FLORIDA INSURED TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
April 18, 1997
Year Ended to
March 31, March 31,
1999 1998
---- ----

<S> <C> <C>
INVESTMENT INCOME:
{ 10} Interest income ........................ $ 184,464 $ 184,452
Interest income on Segregated
Bonds (Note 5) ....................... 4,892 6,464
{ 20} Trustee's fees and expenses ............ (4,961) (6,305)
{ 30} Sponsors' fees ......................... (1,588) (1,558)
------------------------------
{ 40} Net investment income .................. 182,807 183,053
------------------------------

REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Realized gain on
{ 50} securities sold or redeemed .......... 30,044
Unrealized appreciation
{ 60} of investments ....................... 44,045 253,453
------------------------------
Net realized and unrealized
{ 70} gain on investments ................. 74,089 253,453
------------------------------

NET INCREASE IN NET ASSETS
{ 80} RESULTING FROM OPERATIONS .............. $ 256,896 $ 436,506
==============================

</TABLE>

See Notes to Financial Statements.

D - 15.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (FLORIDA INSURED TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
April 18, 1997
Year Ended to
March 31, March 31,
1999 1998
---- ----

<S> <C> <C>
OPERATIONS:
{ 10} Net investment income .................. $ 182,807 $ 183,053
Realized gain on
{ 20} securities sold or redeemed .......... 30,044
Unrealized appreciation
{ 30} of investments ....................... 44,045 253,453
------------------------------
Net increase in net assets
{ 40} resulting from operations ............ 256,896 436,506
------------------------------

INCOME DISTRIBUTIONS TO
{ 50} HOLDERS (Note 2)....................... (178,066) (165,757)
------------------------------

SHARE TRANSACTIONS:
Deferred sales charge (Note 5):
Income ............................... (5,565) (6,464)
Principal ............................ (52,350) (34,655)

{ 82} Redemption amounts:
Income ............................... (619) (155)
{ 83} Principal ............................ (313,097) (42,249)
------------------------------
{ 84} Net share transactions ................. (371,631) (83,523)
------------------------------

{ 90}NET INCREASE (DECREASE) IN NET ASSETS .... (292,801) 187,226

{100}NET ASSETS AT BEGINNING OF PERIOD ........ 3,728,571 3,541,345
------------------------------
{110}NET ASSETS AT END OF PERIOD .............. $ 3,435,770 $ 3,728,571
==============================
PER UNIT:
Income distributions during
{120} period ............................... $ 52.70 $ 46.93
==============================
Net asset value at end of
{140} period ............................... $ 1,075.36 $ 1,068.05
==============================
TRUST UNITS:
{ 83} Redeemed during period ................. 296 41
{150} Outstanding at end of period ........... 3,195 3,491
==============================
</TABLE>

See Notes to Financial Statements.

D - 16.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (FLORIDA INSURED TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES

(B) The Fund is not subject to income taxes. Accordingly, no
provision for such taxes is required.

2. DISTRIBUTIONS

A distribution of net investment income is made to Holders each month.
Receipts other than interest, after deductions for redemptions and applicable
expenses, are also distributed periodically.

3. NET CAPITAL
<TABLE>
<S> <C>
{ 10} Cost of 3,195 units at Date of Deposit ..................... $ 3,203,454
Transfer of capital to interest on Segregated Bonds (Note 5) 11,356
{ 31} Redemptions of units - net cost of 337 units redeemed
{143} less redemption amounts (principal)....................... (17,455)
Deferred sales charge (Note 5) ............................. (99,034)
{ 40} Realized gain on securities sold or redeemed ............... 30,044
{ 70} Unrealized appreciation of investments...................... 297,498
-----------

{ 80} Net capital applicable to Holders .......................... $ 3,425,863
===========
</TABLE>
4. INCOME TAXES

As of March 31, 1999, unrealized appreciation of investments, based on cost
for Federal income tax purposes, aggregated $297,498, all of which related
to appreciated securities. The cost of investment securities for Federal
income tax purposes was $3,122,936 at March 31, 1999.

D - 17.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (FLORIDA INSURED TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

5. DEFERRED SALES CHARGE

$55,000 face amount of School Dist. of Alachua Cnty., FL, G.O. Rfdg. Bonds,
Ser. 1994 and $50,000 face amount of Puerto Rico, Pub. Bldgs. Auth., Govt.
Facs. Rev. Bonds, Ser. A, have been segregated to fund the deferred sales
charges. The sales charges are being paid for with the interest received and
by periodic sales or maturity of these bonds, as well as principal proceeds
received in conjunction with the disposition on the unsegregated bonds in the
portfolio. A deferred sales charge of $3.75 per Unit is charged on a quarterly
basis, and paid to the Sponsors periodically by the Trustee on behalf of the
Holders, up to an aggregate of $45 per Unit over the first three years of the
life of the Fund. Should a Holder redeem Units prior to the third anniversary
of the Fund, the remaining balance of the deferred sales charge will be charged.

6. DEFERRED ORGANIZATION COSTS

Deferred organization costs are being amortized over five years. Included in
"Other liabilities" is $2,033 payable to the Trustee for reimbursement of costs
related to the organization of the Trust.

D - 18.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (FLORIDA TRUST) (INSURED),
DEFINED ASSET FUNDS

PORTFOLIO
As of March 31, 1999

<S> <C> <C> <C> <C> <C> <C> <C>
1 School Dist. of Alachua Cnty., FL, G.O. AAA $ 55,000 3.850 % 2000 None $ 53,780 $ 55,413
Rfdg. Bonds, Ser. 1994 (FSA Ins.) (6)

2 The School Board of Dade County, FL, AAA 385,000 5.500 2025(7) 05/01/06 369,080 421,217
Certs. of Part., Ser. 1996 A (AMBAC @ 101.000
Ins.)

3 Dade Cnty., FL, Professional Sports AAA 500,000 5.250 2030 10/01/05 459,570 518,505
Fran. Facs. Tax Rev. Bonds, Ser. 1995 @ 100.000
(MBIA Ins.)

4 Hospital Bd. of Directors of Lee Cnty., AAA 500,000 5.875 2024 04/01/07 498,305 536,545
FL, Hosp. Rev. Bonds (Lee Memorial @ 102.000
Health System), Ser. 1997 A (MBIA Ins.)

5 Sarasota County, FL, Solid Waste System AAA 400,000 5.500 2021 10/01/06 384,408 417,132
Revenue Bonds, Ser. 1996 (AMBAC Ins.) @ 102.000

6 Volusia Cnty. Educl. Facs. Auth., FL, AAA 360,000 5.500 2026 06/01/06 344,873 375,772
Educl. Facs. Rev. Bonds (Stetson @ 102.000
University, Inc. Proj.), Ser. 1996 A
(MBIA Ins.)

7 City of Tampa, FL, Occupational License AAA 500,000 5.500 2027 10/01/06 478,655 522,570
Tax Bonds, Ser. 1996 B (Financial @ 102.000
Guaranty Ins.)

8 City of Venice, FL, Hlth. Care Rev. AAA 500,000 5.625 2026 08/15/06 484,265 523,125
Bonds (Bon Secours Hlth. Sys. Proj.), @ 102.000
Ser. 1996 (MBIA Ins.)

9 Puerto Rico, Pub. Bldgs. Auth., Govt. AAA 50,000 4.300 1999 None 50,000 50,155
Facs. Rev. Bonds, Ser. A (AMBAC Ins.)
(6)

----------- --------- ---------
TOTAL $ 3,250,000 $ 3,122,936 $ 3,420,434
=========== ========= =========

</TABLE>

See Notes to Portfolios on Page D - 34.

D - 19.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (NEW JERSEY INSURED TRUST),
DEFINED ASSET FUNDS

STATEMENT OF CONDITION
As of March 31, 1999

<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities -
{ 20} at value (cost $ 2,534,718 )(Note 1)......... $ 2,739,005
{ 36} Accrued interest ............................... 30,486
Accrued interest on Segregated Bonds (Note 5) .. 1,321
{ 32} Cash - income .................................. 13,232
Cash - income on Segregated Bonds .............. 3,782
{ 34} Cash - principal ............................... 27,427
Deferred organization costs (Note 6) ........... 1,888
-----------
{ 40} Total trust property ......................... 2,817,141

LESS LIABILITIES:
{ 50} Income advance from Trustee..................... $ 35,435
Deferred sales charge (Note 5) ................. 30,442
Principal payments payable (Segregated Bonds) .. 3,457
{143} Accrued Sponsors' fees ......................... 231
Other liabilities (Note 6) ..................... 1,888 71,453
----------- -----------

NET ASSETS, REPRESENTED BY:
{ 80} 2,537 units of fractional undivided
{ 80} interest outstanding (Note 3)................ 2,737,636

{105} Undistributed net investment income ............ 8,052 $ 2,745,688
----------- ===========

{130}UNIT VALUE ($ 2,745,688 / 2,537 units )........... $ 1,082.26
===========

</TABLE>

See Notes to Financial Statements.

D - 20.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (NEW JERSEY INSURED TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
April 18, 1997
Year Ended to
March 31, March 31,
1999 1998
---- ----

<S> <C> <C>
INVESTMENT INCOME:
{ 10} Interest income ........................ $ 156,065 $ 173,838
Interest income on Segregated
Bonds (Note 5) ....................... 4,883 6,457
{ 20} Trustee's fees and expenses ............ (4,541) (6,393)
{ 30} Sponsors' fees ......................... (1,336) (1,446)
------------------------------
{ 40} Net investment income .................. 155,071 172,456
------------------------------

REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Realized gain on
{ 50} securities sold or redeemed .......... 39,336 7,072
Unrealized appreciation
{ 60} of investments ....................... 18,049 186,238
------------------------------
Net realized and unrealized
{ 70} gain on investments ................. 57,385 193,310
------------------------------

NET INCREASE IN NET ASSETS
{ 80} RESULTING FROM OPERATIONS .............. $ 212,456 $ 365,766
==============================

</TABLE>

See Notes to Financial Statements.

D - 21.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (NEW JERSEY INSURED TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
April 18, 1997
Year Ended to
March 31, March 31,
1999 1998
---- ----

<S> <C> <C>
OPERATIONS:
{ 10} Net investment income .................. $ 155,071 $ 172,456
Realized gain on
{ 20} securities sold or redeemed .......... 39,336 7,072
Unrealized appreciation
{ 30} of investments ....................... 18,049 186,238
---------------------------------
Net increase in net assets
{ 40} resulting from operations ............ 212,456 365,766
---------------------------------

INCOME DISTRIBUTIONS TO
{ 50} HOLDERS (Note 2)....................... (150,404) (155,818)
--------------------------------
SHARE TRANSACTIONS:
Deferred sales charge (Note 5):
Income ............................... (6,237) (6,457)
Principal ............................ (52,574) (34,808)

{ 82} Redemption amounts:
Income ............................... (1,531) (382)
{ 83} Principal ............................ (643,203) (134,724)
------------------------------
{ 84} Net share transactions ................. (703,545) (176,371)
------------------------------

{ 90}NET INCREASE (DECREASE) IN NET ASSETS .... (641,493) 33,577

{100}NET ASSETS AT BEGINNING OF PERIOD ........ 3,387,181 3,353,604
------------------------------
{110}NET ASSETS AT END OF PERIOD .............. $ 2,745,688 $ 3,387,181
==============================
PER UNIT:
Income distributions during
{120} period ............................... $ 53.63 $ 47.84
==============================
Net asset value at end of
{140} period ............................... $ 1,082.26 $ 1,074.61
==============================
TRUST UNITS:
{ 83} Redeemed during period ................. 615 129
{150} Outstanding at end of period ........... 2,537 3,152
==============================
</TABLE>

See Notes to Financial Statements.

D - 22.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (NEW JERSEY INSURED TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES

(B) The Fund is not subject to income taxes. Accordingly, no
provision for such taxes is required.

2. DISTRIBUTIONS

A distribution of net investment income is made to Holders each month.
Receipts other than interest, after deductions for redemptions and applicable
expenses, are also distributed periodically.

3. NET CAPITAL
<TABLE>
<S> <C>
{ 10} Cost of 2,537 units at Date of Deposit ..................... $ 2,593,140
Transfer to capital of interest on Segregated Bonds (Note 5) 11,340
{ 31} Redemptions of units - net cost of 744 units redeemed
{143} less redemption amounts (principal)....................... (17,463)
Deferred sales charge (Note 5) ............................. (100,076)
{ 40} Realized gain on securities sold or redeemed ............... 46,408
{ 70} Unrealized appreciation of investments...................... 204,287
-----------

{ 80} Net capital applicable to Holders .......................... $ 2,737,636
===========
</TABLE>
4. INCOME TAXES

As of March 31, 1999, unrealized appreciation of investments, based on cost
for Federal income tax purposes, aggregated $204,287, all of which related
to appreciated securities. The cost of investment securities for Federal
income tax purposes was $2,534,718 at March 31, 1999.

D - 23.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 307 (NEW JERSEY INSURED TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

5. DEFERRED SALES CHARGE

$15,000 face amount of the Township of Dover (Ocean Cnty., NJ), Gen. Imp. Bonds,
Ser. 1997, $35,000 face amount of The Board of Educ. of the Township of
Piscataway, (Middlesex Cnty., NJ), Certs. of Part., Ser. 1993 and $45,000 face
amount of Puerto Rico, Pub. Bldgs. Auth., Govt. Facs. Rev. Bonds, Ser. A, have
been segregated to fund the deferred sales charges. The sales charges are being
paid for with the interest received and by periodic sales or maturity of these
bonds, as well as principal proceeds received in conjunction with the
disposition on the unsegregated bonds in the portfolio. A deferred sales charge
of $3.75 per Unit is charged on a quarterly basis, and paid to the Sponsors
periodically by the Trustee on behalf of the Holders, up to an aggregate of $45
per Unit over the first three years of the life of the Fund. Should a Holder
redeem Units prior to the third anniversary of the Fund, the remaining balance
of the deferred sales charge will be charged.

6. DEFERRED ORGANIZATION COSTS

Deferred organization costs are being amortized over five years. Included in
"Other liabilities" is $1,888 payable to the Trustee for reimbursement of costs
related to the organization of the Trust.

D - 24.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (NEW JERSEY TRUST) (INSURED),
DEFINED ASSET FUNDS

PORTFOLIO
As of March 31, 1999

<S> <C> <C> <C> <C> <C> <C> <C>
1 New Jersey Educl. Facs. Auth., Rev. AAA $ 500,000 5.250 % 2021 12/01/05 $ 467,250 $ 510,430
Bonds, Univ. of Medicine and Dentistry @ 101.000
of New Jersey Issue, Ser. 1995 B (AMBAC
Ins.)

2 New Jersey Hlth. Care Fac. Fin. Auth., AAA 500,000 6.000 2026 07/01/06 501,970 540,855
Rev. Bonds, St. Joseph's Hosp. and Med. @ 102.000
Ctr. Obligated Grp. Issue, Ser. 1996 A
(Connie Lee Ins.)

3 Gloucester Cnty. Util. Auth., NJ, Swr. AAA 170,000 5.450 2024 01/01/06 163,066 176,066
Rev. Rfdg. Bonds, Ser. 1996 (MBIA Ins.) @ 101.000

4 The Board of Educ. of the Township of AAA 35,000 4.500 2000 None 34,896 35,510
Piscataway (Middlesex Cnty., NJ),
Certs. of Part., Ser. 1993 (FSA Ins.)
(6)

5 The Board of Educ. of the Township of AAA 500,000 5.850 2026 08/01/07 501,865 532,635
Middletown (Monmouth Cnty., NJ), Sch. @ 100.000
Bonds (MBIA Ins.)

6 The Board of Educ. of the Toms River AAA 120,000 5.750 2020 07/15/07 119,226 128,219
Regl. Sch. (Ocean Cnty., NJ), Sch. @ 100.000
Dist. Bonds, Ser. 1997 (Financial
Guaranty Ins.)

7 The Board of Educ. of the Township of AAA 445,000 5.800 2022(7) 09/01/06 445,000 493,242
Sparta (Sussex Cnty., NJ), Sch. Bonds @ 100.000
(MBIA Ins.)

8 Township of Dover (Ocean Cnty., NJ), Aaa(m) 15,000 5.000 2000 None 15,205 15,270
Gen. Imp. Bonds, Ser. 1997 (FSA Ins.)
(6)

9 Delaware River Port Auth., NJ, Rev. AAA 250,000 5.500 2026 01/01/06 241,240 261,638
Bonds, Ser. 1995 (Financial Guaranty @ 102.000
Ins.)

</TABLE>

D - 25.

<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (NEW JERSEY INSURED TRUST),
DEFINED ASSET FUNDS

PORTFOLIO
As of March 31, 1999

Rating of Optional
Portfolio No. and Title of Issues Face Redemption
Securities (1) (4) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
---------- --------- ----------- ----------- ------------ ------------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
10 Puerto Rico, Pub. Bldgs. Auth., Govt. AAA $ 45,000 4.300 1999 None $ 45,000 $ 45,140
Facs. Rev. Bonds, Ser. A (AMBAC Ins.)
(6)

----------- --------- ---------
TOTAL $ 2,580,000 $ 2,534,718 $ 2,739,005
=========== ========= =========

</TABLE>

See Notes to Portfolios on Page D - 34.

D - 26.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (NEW YORK TRUST),
DEFINED ASSET FUNDS

STATEMENT OF CONDITION
As of March 31, 1999

<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities -
{ 20} at value (cost $ 3,322,750 )(Note 1)......... $ 3,655,769
{ 36} Accrued interest ............................... 56,066
Accrued interest on Segregated Bonds (Note 5) .. 1,265
Cash - income .................................. 264
Cash - income on Segregated Bonds .............. 5,150
{ 34} Cash - principal ............................... 35,720
Deferred organization costs (Note 6) ........... 2,034
-----------
{ 40} Total trust property ......................... 3,756,268

LESS LIABILITIES:
{ 50} Income advance from Trustee..................... $ 45,040
Deferred sales charge (Note 5) ................. 37,440
Principal payments payable (Segregated Bonds) .. 2,576
{143} Accrued Sponsors' fees ......................... 307
Other Liabilities (Note 6) ..................... 2,034 87,397
----------- -----------

NET ASSETS, REPRESENTED BY:
{ 80} 3,445 units of fractional undivided
{ 80} interest outstanding (Note 3)................ 3,657,888

{105} Undistributed net investment income ............ 10,983 $ 3,668,871
----------- ===========

{130}UNIT VALUE ($ 3,668,871 / 3,445 units )........... $ 1,064.98
===========

</TABLE>

See Notes to Financial Statements.

D - 27.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (NEW YORK TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
April 18, 1997
Year Ended to
March 31, March 31,
1999 1998
---- ----

<S> <C> <C>
INVESTMENT INCOME:
{ 10} Interest income ........................ $ 193,122 $ 188,147
Interest income on Segregated
Bonds (Note 5) ....................... 5,620 6,964
{ 20} Trustee's fees and expenses ............ (4,997) (6,996)
{ 30} Sponsors' fees ......................... (1,527) (1,558)
------------------------------
{ 40} Net investment income .................. 192,218 186,557
------------------------------

REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Realized gain on
{ 50} securities sold or redeemed .......... 3,682 1,321
Unrealized appreciation
{ 60} of investments ....................... 53,550 279,469
------------------------------
Net realized and unrealized
{ 70} gain on investments ................. 57,232 280,790
------------------------------

NET INCREASE IN NET ASSETS
{ 80} RESULTING FROM OPERATIONS .............. $ 249,450 $ 467,347
==============================

</TABLE>

See Notes to Financial Statements.

D - 28.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (NEW YORK TRUST),
DEFINED ASSET FUNDS

STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
April 18, 1997
Year Ended to
March 31, March 31,
1999 1998
---- ----

<S> <C> <C>
OPERATIONS:
{ 10} Net investment income .................. $ 192,218 $ 186,557
Realized gain on
{ 20} securities sold or redeemed .......... 3,682 1,321
Unrealized appreciation
{ 30} of investments ....................... 53,550 279,469
------------------------------
Net increase in net assets
{ 40} resulting from operations ............ 249,450 467,347
------------------------------

INCOME DISTRIBUTIONS TO
{ 50} HOLDERS (Note 2)....................... (186,430) (168,678)
------------------------------

SHARE TRANSACTIONS:
Deferred sales charge (Note 5):
Income ............................... (6,169) (6,964)
Principal ............................ (46,923) (34,380)

{ 82} Redemption amounts:
Income ............................... (37) (63)
{ 83} Principal ............................ (43,750) (48,170)
------------------------------
{ 84} Total share transactions ............... (96,879) (89,577)
------------------------------

{ 90}NET INCREASE (DECREASE) IN NET ASSETS .... (33,859) 209,092

{100}NET ASSETS AT BEGINNING OF PERIOD ........ 3,702,730 3,493,638
------------------------------
{110}NET ASSETS AT END OF PERIOD .............. $ 3,668,871 $ 3,702,730
==============================
PER UNIT:
Income distributions during
{120} period ............................... $ 53.68 $ 47.73
==============================
Net asset value at end of
{140} period ............................... $ 1,064.98 $ 1,061.87
==============================
TRUST UNITS:
{ 83} Redeemed during period ................. 42 47
{150} Outstanding at end of period ........... 3,445 3,487
==============================
</TABLE>

See Notes to Financial Statements.

D - 29.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (NEW YORK TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES

(B) The Fund is not subject to income taxes. Accordingly, no
provision for such taxes is required.

2. DISTRIBUTIONS

A distribution of net investment income is made to Holders each month.
Receipts other than interest, after deductions for redemptions and applicable
expenses, are also distributed periodically.

3. NET CAPITAL
<TABLE>
<S> <C>
{ 10} Cost of 3,445 units at Date of Deposit ..................... $ 3,405,655
Transfer of capital to interest on Segregated Bonds (Note 5) 12,584
{ 31} Redemptions of units - net cost of 89 units redeemed
{143} less redemption amounts (principal)....................... (3,937)
Deferred sales charge (Note 5) ............................. (94,436)
{ 40} Realized gain on securities sold or redeemed ............... 5,003
{ 70} Net unrealized appreciation of investments.................. 333,019
-----------

{ 80} Net capital applicable to Holders .......................... $ 3,657,888
===========
</TABLE>
4. INCOME TAXES

As of March 31, 1999, net unrealized appreciation of investments, based on
cost for Federal income tax purposes, aggregated $333,019, of which
$144 related to depreciated securities and $333,163 related to
appreciated securities. The cost of investment securities for Federal income
tax purposes was $3,322,750 at March 31, 1999.

D - 30.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (NEW YORK TRUST),
DEFINED ASSET FUNDS

NOTES TO FINANCIAL STATEMENTS

5. DEFERRED SALES CHARGE

$40,000 face amount of Dormitory Auth. of the State of New York, Ithaca College,
Ins. Rev. Bonds, Ser. 1997, $25,000 face amount of the Dormitory Auth. of the
State of New York, Ithaca College, Ins. Rev. Bonds, Ser. 1997, $30,000 face
of the Commonwealth of Puerto Rico, G.O. Pub. Imp. Rfdg. Bonds, Ser. 1992 and
$10,000 face amount of Puerto Rico, Pub. Bldgs. Auth., Govt. Facs. Rev. Bonds,
Ser. A, have been segregated to fund the deferred sales charges. The sales
charges are being paid for with the interest received and by periodic sales or
maturity of these bonds, as well as principal proceeds received in conjunction
with the disposition on the unsegregated bonds in the portfolio. A deferred
sales charge of $3.75 per Unit is charged on a quarterly basis and paid to the
Sponsors periodically by the Trustee on behalf of the Holders, up to an
aggregate of $45 per Unit over the first three years of the life of the Fund.
Should a Holder redeem Units prior to the third anniversary of the Fund, the
remaining balance of the deferred sales charge will be charged.

6. DEFERRED ORGANIZATION COSTS

Deferred organization costs are being amortized over five years. Included in
"Other liabilities" is $2,034 payable to the Trustee for reimbursement of costs
related to the organization of the Trust.

D - 31.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (NEW YORK TRUST),
DEFINED ASSET FUNDS

PORTFOLIO
As of March 31, 1999

Rating Optional
Portfolio No. and Title of of Face Redemption
Securities Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
---------- --------- ----------- ----------- ------------ ------------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 Dormitory Auth. of the State of New BBB+ $ 455,000 5.500 % 2021 07/01/07 $ 420,648 $ 467,522
York, Dept. of Hlth., Rev. Bonds @ 102.000
(Veterans Home Issue), Ser. 1996

2 Dormitory Auth. of the State of New AAA 40,000 4.500 1999 None 40,290 40,146
York, Ithaca College, Ins. Rev. Bonds,
Ser. 1997 (AMBAC Ins.) (5) (6)

3 Dormitory Auth. of the State of New A- 500,000 5.375 2026 02/15/06 454,175 508,970
York, Mental Hlth. Svcs. Fac. Imp. Rev. @ 102.000
Bonds, Ser. 1996 B

4 Dormitory Auth. of the State of New A- 500,000 5.500 2026 05/15/06 462,545 515,515
York, State Univ. Educl. Facs., Rev. @ 102.000
Bonds, Ser. 1996

5 Dormitory Auth. of the State of New BBB 500,000 6.000 2022 07/01/07 496,730 544,335
York, Upstate Cmnty. Colls., Rev. @ 102.000
Bonds, Ser. 1997

6 New York State Urban Dev. Corp., Corr. BBB+ 500,000 5.250 2021 01/01/04 444,180 499,955
Cap. Facs. Rev. Bonds, Rfdg. Ser. 1993 @ 102.000
A

7 State of New York Mtge. Agy., Homeowner Aa2(m) 450,000 5.900 2027 04/01/07 446,837 476,483
Mtge. Rev. Bonds @ 102.000

8 New York City, NY, Mun. Wtr. Fin. A 500,000 5.875 2026 06/15/06 491,390 536,560
Auth., Wtr. and Swr. Sys. Rev. Bonds, @ 101.000
Fiscal Ser. 1996 B

9 Dormitory Auth. of the State of New AAA 25,000 4.750 2000 None 25,295 25,452
York, Ithaca College, Ins. Rev. Bonds,
Ser. 1997 (AMBAC Ins.) (5) (6)

10 Commonwealth of Puerto Rico, G.O. Pub A 30,000 5.500 2000 None 30,660 30,800
Imp. Rfdg. Bonds, Ser. 1997 (6)

</TABLE>

D - 32.

<PAGE>

MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (NEW YORK TRUST),
DEFINED ASSET FUNDS

PORTFOLIO
As of March 31, 1999

Rating Optional
Portfolio No. and Title of of Face Redemption
Securities Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost(2) Value(2)
---------- --------- ----------- ----------- ------------ ------------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
11 Puerto Rico, Pub. Bldgs. Auth., Govt. AAA $ 10,000 4.300 % 1999 None $ 10,000 $ 10,031
Facs. Rev. Bonds, Ser. A (AMBAC Ins.)
(5) (6)

----------- --------- ---------
TOTAL $ 3,510,000 $ 3,322,750 $ 3,655,769
=========== ========= =========
</TABLE>

See Notes to Portfolios on Page D - 34.

D - 33.

<PAGE>
MUNICIPAL INVESTMENT TRUST FUND,
MULTISTATE SERIES - 309 (CALIFORNIA INSURED, CONNECTICUT,
FLORIDA INSURED, NEW JERSEY INSURED AND NEW YORK TRUSTS),
DEFINED ASSET FUNDS

NOTES TO PORTFOLIOS
As of March 31, 1999

(1) The ratings of the bonds are by Standard & Poor's Ratings Group, or by
Moody's Investors Service, Inc. if followed by "(m)", or by Fitch Investors
Service, Inc. if followed by "(f)"; "NR" indicates that this bond is not
currently rated by any of the above-mentioned rating services. These ratings
have been furnished by the Evaluator but not confirmed with the rating agencies.

(2) See Notes to Financial Statements.

(3) Optional redemption provisions, which may be exercised in whole or in part,
are initially at prices of par plus a premium, then subsequently at prices
declining to par. Certain securities may provide for redemption at par prior
or in addition to any optional or mandatory redemption dates or maturity, for
example, through the operation of a maintenance and replacement fund, if
proceeds are not able to be used as contemplated, the project is condemned or
sold or the project is destroyed and insurance proceeds are used to redeem
the securities. Many of the securities are also subject to mandatory sinking
fund redemption commencing on dates which may be prior to the date on which
securities may be optionally redeemed. Sinking fund redemptions are at par
and redeem only part of the issue. Some of the securities have mandatory
sinking funds which contain optional provisions permitting the issuer to
increase the principal amount of securities called on a mandatory redemption
date. The sinking fund redemptions with optional provisions may, and optional
refunding redemptions generally will, occur at times when the redeemed
securities have an offering side evaluation which represents a premium over
par. To the extent that the securities were acquired at a price higher than
the redemption price, this will represent a loss of capital when compared
with the Public Offering Price of the Units when acquired. Distributions will
generally be reduced by the amount of the income which would otherwise have
been paid with respect to redeemed securities and there will be distributed
to Holders any principal amount and premium received on such redemption after
satisfying any redemption requests for Units received by the Fund. The
estimated current return may be affected by redemptions.

(4) All securities are insured, either on an individual basis or by portfolio
insurance, by a municipal bond insurance company which has been assigned
"AAA" claims paying ability by Standard & Poor's. Accordingly, Standard &
Poor's has assigned a "AAA" rating to the securities. Securities covered by
portfolio insurance are rated "AAA" only as long as they remain in the Trust.

(5) Insured by the indicated municipal bond insurance company.

(6) These bonds have been segregated to fund the deferred sales charges.

(7) Bonds with an aggregate face amount of $710,000 of the California Insured
Trust, $385,000 face amount of the Florida Insured Trust and $445,000 of the
New Jersey Insured Trust, have been pre-refunded and are expected to be called
for redemption on the optional redemption provision dates shown.

D - 34.

<PAGE>
Defined
Asset FundsSM

HAVE QUESTIONS ? MUNICIPAL INVESTMENT TRUST FUND
Request the most MULTISTATE SERIES--309
recent free Information (A Unit Investment Trust)
Supplement that gives more ---------------------------------------
details about the Fund, This Prospectus does not contain
by calling: complete information about the
The Chase Manhattan Bank investment company filed with the
1-800-323-1508 Securities and Exchange Commission in
Washington, D.C. under the:
o Securities Act of 1933 (file no.
333-22241) and
o Investment Company Act of 1940 (file
no. 811-1777).
TO OBTAIN COPIES AT PRESCRIBED RATES--
WRITE: Public Reference Section of the
Commission
450 Fifth Street, N.W., Washington,
D.C. 20549-6009
CALL: 1-800-SEC-0330.
VISIT: http://www.sec.gov.
---------------------------------------
No person is authorized to give any
information or representations about
this Fund not contained in this
Prospectus or the Information
Supplement, and you should not rely on
any other information.
---------------------------------------
When units of this Fund are no longer
available, this Prospectus may be used
as a preliminary prospectus for a
future series, but some of the
information in this Prospectus will be
changed for that series.
Units of any future series may not be
sold nor may offers to buy be accepted
until that series has become effective
with the Securities and Exchange
Commission. No units can be sold in any
State where a sale would be illegal.

11547--7/99