MUNICIPAL INVESTMENT TR FD MULTISTATE SER 414 DEF ASSET FDS
497, 2000-04-27
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<PAGE>

                           DEFINED ASSET FUNDS--REGISTERED TRADEMARK--
                           ----------------------------------------------------

                           MUNICIPAL INVESTMENT TRUST FUND
                           MULTISTATE SERIES--414
                           (A UNIT INVESTMENT TRUST)
                           -  CALIFORNIA AND NEW YORK PORTFOLIOS
                           -  PORTFOLIOS OF INSURED LONG-TERM MUNICIPAL BONDS
                           -  DESIGNED TO BE FREE OF REGULAR FEDERAL INCOME TAX
                           -  EXEMPT FROM SOME STATE TAXES
                           -  DISTRIBUTIONS TWICE A YEAR

SPONSORS:
MERRILL LYNCH,             -----------------------------------------------------
PIERCE, FENNER & SMITH     The Securities and Exchange Commission has not
INCORPORATED               approved or disapproved these Securities or passed
SALOMON SMITH BARNEY INC.  upon the adequacy of this prospectus. Any
PAINEWEBBER INCORPORATED   representation to the contrary is a criminal offense.
DEAN WITTER REYNOLDS INC.  Prospectus dated April 26, 2000.
<PAGE>
- --------------------------------------------------------------------------------

Defined Asset Funds-Registered Trademark-
Defined Asset Funds-Registered Trademark- 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:
  - Fixed portfolio: Defined Funds follow a buy and hold investment strategy;
    funds are not managed and portfolio changes are limited.
  - Defined Portfolios: We choose the stocks and bonds in advance, so you know
    what you're investing in.
  - Professional research: Our dedicated research team seeks out stocks or bonds
    appropriate for a particular fund's objectives.
  - 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.

<TABLE>
<S>                                    <C>
CONTENTS
                                       PAGE
                                        --
California Insured Portfolio
  Risk/Return Summary and
  Portfolio..........................    3
New York Insured Portfolio
  Risk/Return Summary and
  Portfolio..........................    6
What You Can Expect From Your
  Investment.........................   10
  Income Twice A Year................   10
  Return Figures.....................   10
  Records and Reports................   10
The Risks You Face...................   11
  Interest Rate Risk.................   11
  Call Risk..........................   11
  Reduced Diversification Risk.......   11
  Liquidity Risk.....................   11
  Concentration Risk.................   11
  State Concentration Risks..........   12
  Bond Quality Risk..................   14
  Insurance Related Risk.............   14
  Litigation and Legislation Risks...   14
Selling or Exchanging Units..........   14
  Sponsors' Secondary Market.........   14
  Selling Units to the Trustee.......   15
  Exchange Option....................   15
How The Fund Works...................   16
  Pricing............................   16
  Evaluations........................   16
  Income.............................   16
  Expenses...........................   16
  Portfolio Changes..................   17
  Fund Termination...................   17
  Certificates.......................   18
  Trust Indenture....................   18
  Legal Opinion......................   19
  Auditors...........................   19
  Sponsors...........................   19
  Trustee............................   19
  Underwriters' and Sponsors'
    Profits..........................   19
  Public Distribution................   19
  Code of Ethics.....................   20
  Year 2000 Issues...................   20
Taxes................................   20
Supplemental Information.............   22
Financial Statements.................   23
  Report of Independent Accountants..   23
  Statements of Condition............   23
</TABLE>

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

CALIFORNIA INSURED PORTFOLIO--RISK/RETURN SUMMARY

<TABLE>
<C>  <S>
 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, healthcare 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?

  -  The Fund plans to hold to maturity 7
     long-term municipal bonds with an
     aggregate face amount of $4,075,000 and
     some short-term bonds reserved to pay
     the deferred sales fee. The Fund is a
     unit investment trust which means that,
     unlike a mutual fund, the Fund's
     portfolio is not managed.
  -  The bonds are rated AAA or Aaa by
     Standard & Poor's, Moody's or Fitch.
  -  Most of the bonds cannot be called for
     several years, and after that they can
     be called at a premium declining over
     time to par value. Some bonds may be
     called earlier at par for extraordinary
     reasons.
  -  100% of the bonds are insured by
     AAA-rated 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:
</TABLE>


<TABLE>
  -  General Obligation                   17%
<C>  <S>
  -  Hospitals/Health Care                 15%
  -  Lease Rental                         25%
  -  Municipal Electric Utilities            15%
  -  Municipal Water/Sewer Utilities       15%
  -  Tax Allocation                        13%
</TABLE>


<TABLE>
<C>  <S>
 4.  WHAT ARE THE SIGNIFICANT RISKS?

     YOU CAN LOSE MONEY BY INVESTING IN THE FUND.
     THIS CAN HAPPEN FOR VARIOUS REASONS,
     INCLUDING:

  -  Rising interest rates, an issuer's worsening
     financial condition or a drop in bond
     ratings can reduce the price of your units.

  -  Because the Portfolio is concentrated in
     lease rental bonds, adverse developments in
     this sector may affect the value of your
     units. These risks are discussed later in
     this prospectus under Concentration Risk.

  -  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.

  -  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
     CALIFORNIA BONDS SO IT IS LESS DIVERSIFIED
     THAN A NATIONAL FUND AND IS SUBJECT TO RISKS
     PARTICULAR TO CALIFORNIA, WHICH ARE BRIEFLY
     DESCRIBED LATER IN THIS PROSPECTUS UNDER
     STATE CONCENTRATION RISKS.
</TABLE>

<TABLE>
<C>  <S>
     DEFINING YOUR INCOME
     AND ESTIMATING YOUR RETURN
</TABLE>

<TABLE>
<C>  <S>                                            <C>
     WHAT YOU MAY EXPECT (Record Day: 10th day of
     each November and May)
     First payment per 1,000 units (11/25/00):       $28.21
     Regular Semi-Annual Income per 1,000 units
     (each November and May beginning 5/25/01):      $26.17
     Annual Income per 1,000 units:                  $52.35
     THESE FIGURES ARE ESTIMATES ON THE BUSINESS DAY BEFORE
     THE INITIAL DATE OF DEPOSIT; ACTUAL PAYMENTS MAY VARY.
     Estimated Current Return                         5.36%
     Estimated Long Term Return                       5.48%
     RETURNS WILL VARY (SEE PAGE 10).
</TABLE>

                                       3
<PAGE>
- --------------------------------------------------------------------------------
                          CALIFORNIA INSURED PORTFOLIO
- ------------------------------------------------------------------------

Multistate Series--414


<TABLE>
<CAPTION>
                                                                          RATING             COST
PORTFOLIO TITLE                                COUPON   MATURITY (1)   OF ISSUES (2)     TO FUND (3)
<S>                                            <C>      <C>            <C>             <C>
- -------------------------------------------------------------------------------------------------------

GENERAL OBLIGATION (17%):

 1. $35,000 Pomona Unified Sch. Dist. (Cnty.    5.20%         8/1/01    AAA             $    35,511.35
    of Los Angeles, CA), 2000 G.O. Rfdg.
    Bonds, Ser. A (MBIA Ins.)(4)

 2. $40,000 Santa Ana Unified Sch. Dist.        5.00          8/1/02    AAA                  40,682.40
    (Orange Cnty., CA), G.O. Bonds, Election
    of 1999, Ser. 2000 (Financial Guaranty
    Ins.)(4)

 3. $600,000 Orcutt Union Sch. Dist. (Santa     5.75          8/1/30    AAA                 600,000.00
    Barbara Cnty., CA), G.O. Bonds, 1999
    Election, Ser. B (FSA Ins.)

HOSPITALS/HEALTH CARE (15%):

 4. $600,000 California Hlth. Facs. Fin.       5.375         8/15/30    AAA                 559,710.00
    Auth., Ins. Rev. Bonds (Sutter Hlth.),
    Ser. 1998 A (MBIA Ins.)

LEASE RENTAL (25%):

 5. $500,000 City of Campbell Redev. Agy.       5.25         10/1/28    AAA                 461,890.00
    (Santa Clara Cnty., CA), 1997 Rfdg.
    Certs. of Part. (Civic Ctr. Proj.) (MBIA
    Ins.)

 6. $540,000 Pajaro Valley, CA, Unified Sch.    5.85          9/1/32    AAA                 540,000.00
    Dist., Certs. of Part. (1997 Sch. Fac.
    Bridge Funding Prog.) (FSA Ins.)

MUNICIPAL ELECTRIC UTILITIES (15%):

 7. $600,000 Northern California Pwr. Agy.,     5.20          7/1/32    AAA                 547,734.00
    Hydroelectric Proj. Number One Rev.
    Bonds, 1998 Rfdg. Ser. A (MBIA Ins.)

MUNICIPAL WATER/SEWER UTILITIES (15%):

 8. $600,000 Carmichael Wtr. Dist.             5.125          9/1/29    AAA                 539,280.00
    (Sacramento Cnty., CA), 1999 Wtr. Rev.
    Certs. of Part. (Carmichael Wtr. Dist.
    Fin. Corp.) (MBIA Ins.)

TAX ALLOCATION (13%):

 9. $560,000 Dinuba, CA, Redev. Agy., Tax       5.40          9/1/27    AAA                 533,097.60
    Alloc. Rfdg. Bonds (Merged City of Dinuba
    Redev. Proj. and Dinuba Redev. Proj. No.
    2), Issue of 1997 A (MBIA Ins.)
                                                                                        --------------
                                                                                        $ 3,857,905.35
                                                                                        ==============
</TABLE>


- ----------------------------
(1)  Approximately 40% of the long-term bonds are callable beginning in 2007;
     45% are callable in 2008, and the remaining long-term bonds, are callable
     in 2009 and later. Some bonds could be called earlier under extraordinary
     circumstances.
(2)  All ratings are by Standard & Poor's Ratings Group unless followed by
     "(m)", which indicates a Moody's Investors Service rating or by "(f)",
     which indicates a Fitch IBCA, Inc. rating. An AAA rating indicates highest
     quality bonds with a very strong capacity to pay interest and repay
     principal.

(3)  Approximately 2% of the bonds were deposited at a premium; 28% at par and
     70% at a discount from par. Sponsors' profit on deposit was $37,866.30.

(4)  The interest and principal on these bonds will be used to pay the deferred
     sales charge obligations of the investors, and these amounts are not
     included in the calculation of Estimated Current and Long Term Returns.

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

                   PLEASE NOTE THAT IF THIS PROSPECTUS IS USED AS A PRELIMINARY
                   PROSPECTUS
                   FOR A FUTURE FUND IN THIS SERIES, THE PORTFOLIO WILL CONTAIN
                   DIFFERENT
                   BONDS FROM THOSE DESCRIBED ABOVE.
<PAGE>
- --------------------------------------------------------------------------------
CALIFORNIA INSURED PORTFOLIO (CONTINUED)

<TABLE>
<C>  <S>
 5.  IS THIS FUND APPROPRIATE FOR YOU?

     Yes, if you want income free from regular federal
     tax. 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.

 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 1.00%, as well
     as a total deferred sales fee of $19.00 per 1,000
     units ($2.38 per 1,000 units quarterly in the first
     year and $2.37 per 1,000 units quarterly in the
     second year). Employees of some of the Sponsors and
     their affiliates may pay a reduced sales fee of at
     least $5.00 per 1,000 units.

     The maximum sales fee is reduced if you invest at
     least $100,000, as follows:
</TABLE>

<TABLE>
<CAPTION>
                                   YOUR
                                 MAXIMUM
                                SALES FEE
          IF YOU INVEST:         WILL BE:
          --------------        ---------
<C>  <S>                       <C>
     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%
</TABLE>

<TABLE>
<C>  <S>
     ESTIMATED ANNUAL FUND OPERATING EXPENSES
</TABLE>


<TABLE>
<CAPTION>
                                       AS A %
                                         OF            AMOUNT
                                       $1,000        PER 1,000
                                      INVESTED         UNITS
                                      --------       ---------
<C>  <S>                              <C>            <C>
                                       .065  %       $     0.63
     Trustee's Fee
                                       .047  %       $     0.46
     Portfolio Supervision,
     Bookkeeping and
     Administrative Fees
     (including updating
     expenses)
                                       .034  %       $     0.33
     Evaluator's Fee
                                       .044  %       $     0.41
     Other Operating Expenses
                                      -------        ----------
                                       .190  %       $     1.83
     TOTAL
</TABLE>


<TABLE>
<CAPTION>
                                                       AMOUNT
                                                     PER 1,000
                                                       UNITS
                                                     ---------
<C>  <S>                                        <C>
                                                       $2.00
     ORGANIZATION COSTS (deducted from
     Fund assets at the close of the
     initial offering period)
</TABLE>

<TABLE>
<C>  <S>
     The Sponsors historically paid organization
     costs and updating expenses.

     EXAMPLE
     This example may help you compare the cost of
     investing in the Fund to the cost of investing
     in other funds.
     The example assumes that you invest $10,000 in
     the Fund for the periods indicated and sell all
     your units at the end of those periods. The
     example also assumes a 5% return on your
     investment each year and that the Fund's
     operating expenses stay the same. Although your
     actual costs may be higher or lower, based on
     these assumptions your costs would be:
</TABLE>


<TABLE>
    <S>  <C>     <C>      <C>      <C>
         1 Year  3 Years  5 Years  10 Years
          $329    $371     $416      $550
</TABLE>



<TABLE>
<C>  <S>
     You will pay the following expenses if you do
     not sell your units:
</TABLE>



<TABLE>
    <S>  <C>     <C>      <C>      <C>
         1 Year  3 Years  5 Years  10 Years
          $234    $371     $416      $550
</TABLE>



<TABLE>
<C>  <S>
 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 after 1987 and were outstanding on
     March 31, 2000. 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
     3/31/00.
</TABLE>


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

<TABLE>
 High                    4.25%     5.45%     5.72%     4.66%     6.64%     6.31%
 <S>                    <C>       <C>       <C>       <C>       <C>       <C>
 Average                 -1.28      4.42      5.52      0.59      5.47      6.11
 Low                     -4.59      2.52      5.32     -1.89      3.28      5.91
</TABLE>

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

<TABLE>
 <S>                    <C>       <C>       <C>       <C>       <C>       <C>
 Average
 Sales fee               1.93%     5.23%     5.83%
</TABLE>

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

NOTE: ALL RETURNS REPRESENT CHANGES IN UNIT PRICE WITH DISTRIBUTIONS REINVESTED
 INTO THE MUNICIPAL FUND INVESTMENT ACCUMULATION PROGRAM.

                                       4
<PAGE>
- --------------------------------------------------------------------------------

CALIFORNIA INSURED PORTFOLIO (CONTINUED)

<TABLE>
<C>  <S>
 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 $250.

     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 1,000 UNITS       $976.03
     (as of April 25, 2000)

     Unit price is based on the net asset
     value of the Fund plus the up-front
     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. Unit price
     also includes the estimated organization
     costs shown on page 4, to which no sales
     fee has been applied. 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.

     UNIT PAR VALUE                     $1.00
     Unit par value means the total amount of
     money you should generally receive on
     each unit by the termination of the Fund
     (other than interest and premium on the
     bonds). This total amount assumes that
     all bonds in the Fund are either paid at
     maturity or called by the issuer at par
     or are sold by the Fund at par. If you
     sell your units before the Fund
     terminates, you may receive more or less
     than the unit par value.

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 twice a year.

     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.
     You will also receive principal payments
     if bonds are sold or called or mature,
     when the cash available is more than
     $10.00 per 1,000 units. 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 with 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.
</TABLE>

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

NEW YORK INSURED PORTFOLIO--RISK/RETURN SUMMARY

<TABLE>
<C>  <S>
 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, healthcare 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?

  -  The Fund plans to hold to maturity 7
     long-term municipal bonds with an
     aggregate face amount of $4,075,000, and
     some short-term bonds reserved to pay
     the deferred sales fee. The Fund is a
     unit investment trust which means that,
     unlike a mutual fund, the Fund's
     portfolio is not managed.
  -  The bonds are rated AAA or Aaa by
     Standard & Poor's, Moody's or Fitch.
  -  Most of the bonds cannot be called for
     several years, and after that they can
     be called at a premium declining over
     time to par value. Some bonds may be
     called earlier at par for extraordinary
     reasons.
  -  100% of the bonds are insured by
     AAA-rated or Aaa-rated 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:
</TABLE>

<TABLE>
  -  Airports/Ports/Highways                  15%
<C>  <S>
  -  General Obligation                        2%
  -  Hospitals/Health Care                    28%
  -  Lease Rental                             15%
  -  Municipal Electric Utilities             15%
  -  Universities/Colleges                    25%
</TABLE>

<TABLE>
<C>  <S>
 4.  WHAT ARE THE SIGNIFICANT RISKS?

     YOU CAN LOSE MONEY BY INVESTING IN THE
     FUND. THIS CAN HAPPEN FOR VARIOUS
     REASONS, INCLUDING:

  -  Rising interest rates, an issuer's
     worsening financial condition or a drop
     in bond ratings can reduce the price of
     your units.

  -  Because the Portfolio is concentrated in
     hospital/health care and
     university/college bonds, adverse
     developments in these sectors may affect
     the value of your units.

  -  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.

  -  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
     NEW YORK BONDS SO IT IS LESS DIVERSIFIED
     THAN A NATIONAL FUND AND IS SUBJECT TO
     RISKS PARTICULAR TO NEW YORK, WHICH ARE
     BRIEFLY DESCRIBED LATER IN THIS
     PROSPECTUS UNDER STATE CONCENTRATION
     RISKS.
</TABLE>

<TABLE>
<C>  <S>

     DEFINING YOUR INCOME
     AND ESTIMATING YOUR RETURN
</TABLE>

<TABLE>
<C>  <S>                                            <C>
     WHAT YOU MAY EXPECT (Record Day: 10th day of
     each November and May)
     First payment per 1,000 units (11/25/00):       $28.69
     Regular Semi-Annual Income per 1,000 units
     (each November and May beginning 5/25/01):      $26.62
     Annual Income per 1,000 units:                  $53.25
     THESE FIGURES ARE ESTIMATES ON THE BUSINESS DAY BEFORE
     THE INITIAL DATE OF DEPOSIT; ACTUAL PAYMENTS MAY VARY.
     Estimated Current Return                         5.44%
     Estimated Long Term Return                       5.55%
     RETURNS WILL VARY (SEE PAGE 10).
</TABLE>

                                       6
<PAGE>
- --------------------------------------------------------------------------------
                           NEW YORK INSURED PORTFOLIO
- ------------------------------------------------------------------------

Multistate Series--414


<TABLE>
<CAPTION>
                                                                          RATING             COST
PORTFOLIO TITLE                                COUPON   MATURITY (1)   OF ISSUES (2)     TO FUND (3)
<S>                                            <C>      <C>            <C>             <C>
- -------------------------------------------------------------------------------------------------------

AIRPORTS/PORTS/HIGHWAYS (15%):

 1. $600,000 Metropolitan Trans. Auth., NY,    5.625%         7/1/27    AAA             $   585,666.00
    Commuter Fac. Rev. Bonds, Ser. 1997 A
    (MBIA Ins.)

GENERAL OBLIGATION (2%):

 2. $35,000 City Sch. Dist. of the City of      5.60         6/15/01    AAA                  35,459.20
    Watertown, Jefferson Cnty., NY, G.O. Sch.
    Dist. Bonds, Ser. 2000 (FSA Ins.)(4)

 3. $40,000 Town of Webb Union Free Sch.        5.00         6/15/02    AAA                  40,320.00
    Dist., Herkimer Cnty., NY, G.O. Sch.
    Dist. Bonds, Ser. 2000 (FSA Ins.)(4)

HOSPITALS/HEALTH CARE (28%):

 4. $600,000 Dormitory of the State of New      5.70          2/1/37    AAA                 581,994.00
    York, FHA-Ins. Mtge. Nursing Home Rev.
    Bonds (The Rosalind and Joseph Gurwin
    Jewish Geriatric Ctr. of Long Island,
    Inc.), Ser. 1997 (AMBAC Ins.)

 5. $600,000 Dormitory Auth. of the State of    5.45          8/1/35    AAA                 555,894.00
    New York, FHA-Ins. Mtge. Hosp. Rev. Bonds
    (St. Barnabas Hosp.), Ser. 1997 (AMBAC
    Ins.)

LEASE RENTAL (15%):

 6. $600,000 New York State Urban Dev. Corp.,   5.70          1/1/27    AAA                 587,856.00
    Corr. Cap. Facs. Rev. Bonds, Ser. 7 (MBIA
    Ins.)

MUNICIPAL ELECTRIC UTILITIES (15%):

 7. $600,000 Long Island Pwr. Auth., NY,        5.25         12/1/26    AAA                 551,700.00
    Elec. Sys. Gen. Rev. Bonds, Ser. 1998 A
    (AMBAC Ins.)

UNIVERSITIES/COLLEGES (25%):

 8. $600,000 Dormitory Auth. of the State of    5.00          7/1/27    AAA                 527,262.00
    New York, Univ. of Rochester Rev. Bonds,
    Ser. 1998 A (MBIA Ins.)

 9. $400,000 Dormitory Auth. of the State of    6.00          7/1/29    AAA                 404,092.00
    New York, Pace Univ. Ins. Rev. Bonds,
    Ser. 2000 (MBIA Ins.)
                                                                                        --------------
                                                                                        $ 3,870,243.20
                                                                                        ==============
</TABLE>


- ----------------------------
(1)  Approximately 60% of the long-term bonds are callable beginning in 2007;
     30% are callable in 2008, and the remaining long-term bonds are callable in
     2010. Some bonds could be called earlier under extraordinary circumstances.
(2)  All ratings are by Standard & Poor's Ratings Group unless followed by
     "(m)", which indicates a Moody's Investors Service rating or by "(f)",
     which indicates a Fitch IBCA, Inc. rating. An AAA rating indicates highest
     quality bonds with a very strong capacity to pay interest and repay
     principal.
(3)  Approximately 12% of the bonds were deposited at a premium and 88% at a
     discount from par. Sponsors' profit on deposit was $40,965.25.
(4)  The interest and principal on these bonds will be used to pay the deferred
     sales charge obligations of the investors, and these amounts are not
     included in the calculation of Estimated Current and Long Term Returns.

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

                   PLEASE NOTE THAT IF THIS PROSPECTUS IS USED AS A PRELIMINARY
                   PROSPECTUS
                   FOR A FUTURE FUND IN THIS SERIES, THE PORTFOLIO WILL CONTAIN
                   DIFFERENT
                   BONDS FROM THOSE DESCRIBED ABOVE.
<PAGE>
- --------------------------------------------------------------------------------

NEW YORK INSURED PORTFOLIO (CONTINUED)

<TABLE>
<C>  <S>
 5.  IS THIS FUND APPROPRIATE FOR YOU?

     Yes, if you want income free from regular federal
     tax. 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.

 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 1.00%, as well
     as a total deferred sales fee of $19.00 per 1,000
     units ($2.38 per 1,000 units quarterly in the first
     year and $2.37 per 1,000 units quarterly in the
     second year). Employees of some of the Sponsors and
     their affiliates may pay a reduced sales fee of at
     least $5.00 per 1,000 units.

     The maximum sales fee is reduced if you invest at
     least $100,000, as follows:
</TABLE>

<TABLE>
     Less than $100,000            2.90%
<C>  <S>                       <C>
     $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%
</TABLE>

<TABLE>
<C>  <S>
     ESTIMATED ANNUAL FUND OPERATING EXPENSES
</TABLE>

<TABLE>
<CAPTION>
                                       AS A %
                                         OF            AMOUNT
                                       $1,000        PER 1,000
                                      INVESTED         UNITS
                                      --------       ---------
<C>  <S>                              <C>            <C>
                                       .065 %        $     0.63
     Trustee's Fee
                                       .047 %        $     0.46
     Portfolio Supervision,
     Bookkeeping and
     Administrative Fees
     (including updating
     expenses)
                                       .034 %        $     0.33
     Evaluator's Fee
                                       .043 %        $     0.41
     Other Operating Expenses
                                      ------         ----------
                                       .189 %        $     1.83
     TOTAL
</TABLE>

<TABLE>
<CAPTION>
                                                       AMOUNT
                                                     PER 1,000
                                                       UNITS
                                                     ---------
<C>  <S>                                        <C>
                                                       $2.00
     ORGANIZATION COSTS (deducted from
     Fund assets at the close of the
     initial offering period)
</TABLE>

<TABLE>
<C>  <S>
     The Sponsors historically paid organization
     costs and updating expenses.

     EXAMPLE
     This example may help you compare the cost of
     investing in the Fund to the cost of investing
     in other funds.
     The example assumes that you invest $10,000 in
     the Fund for the periods indicated and sell all
     your units at the end of those periods. The
     example also assumes a 5% return on your
     investment each year and that the Fund's
     operating expenses stay the same. Although your
     actual costs may be higher or lower, based on
     these assumptions your costs would be:
</TABLE>

<TABLE>
    <S>  <C>     <C>      <C>      <C>
         1 Year  3 Years  5 Years  10 Years
          $329    $370     $415      $549
</TABLE>

<TABLE>
<C>  <S>
     You will pay the following expenses if you do
     not sell your units:
</TABLE>

<TABLE>
    <S>  <C>     <C>      <C>      <C>
         1 Year  3 Years  5 Years  10 Years
          $234    $370     $415      $549
</TABLE>

<TABLE>
<C>  <S>
 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 after 1987 and were outstanding on
     March 31, 2000. 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
     3/31/00.
</TABLE>

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

<TABLE>
 High                    6.07%     5.45%     6.45%     6.62%     6.63%     7.04%
 <S>                    <C>       <C>       <C>       <C>       <C>       <C>
 Average                 -1.33      4.16      5.99      0.54      5.18      6.58
 Low                     -7.77      2.58      5.63     -5.23      3.54      6.22
</TABLE>

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

<TABLE>
 <S>                    <C>       <C>       <C>       <C>       <C>       <C>
 Average
 Sales fee               1.94%     5.07%     5.78%
</TABLE>

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

NOTE: ALL RETURNS REPRESENT CHANGES IN UNIT PRICE WITH DISTRIBUTIONS REINVESTED
 INTO THE MUNICIPAL FUND INVESTMENT ACCUMULATION PROGRAM.

                                       7
<PAGE>
NEW YORK INSURED PORTFOLIO (CONTINUED)

<TABLE>
<C>  <S>
 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 $250.

     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 1,000 UNITS       $979.14
     (as of April 25, 2000)

     Unit price is based on the net asset
     value of the Fund plus the up-front
     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. Unit price
     also includes the estimated organization
     costs shown on page 7, to which no sales
     fee has been applied. 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.

     UNIT PAR VALUE                     $1.00
     Unit par value means the total amount of
     money you should generally receive on
     each unit by the termination of the Fund
     (other than interest and premium on the
     bonds). This total amount assumes that
     all bonds in the Fund are either paid at
     maturity or called by the issuer at par
     or are sold by the Fund at par. If you
     sell your units before the Fund
     terminates, you may receive more or less
     than the unit par value.

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 twice a year.

     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
     $10.00 per 1,000 units. 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 with 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.
</TABLE>

                                       8
<PAGE>
- --------------------------------------------------------------------------------
    TAX-FREE VS. TAXABLE INCOME: A COMPARISON OF TAXABLE AND TAX-FREE YIELDS

                            FOR CALIFORNIA RESIDENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                            COMBINED
                                            EFFECTIVE
TAXABLE INCOME 2000*                        TAX RATE                           TAX-FREE YIELD OF
    SINGLE RETURN         JOINT RETURN          %          3%        3.5%        4%        4.5%        5%        5.5%
<S>                     <C>                 <C>         <C>        <C>        <C>        <C>        <C>        <C>
                                                                      IS EQUIVALENT TO A TAXABLE YIELD OF

<CAPTION>

TAXABLE INCOME 2000*    TAX-FREE YIELD OF
    SINGLE RETURN         6%        6.5%        7%        7.5%        8%
<S>                    <C>        <C>        <C>        <C>        <C>        <C>
                       IS EQUIVALENT TO A
                        TAXABLE YIELD OF
</TABLE>

- --------------------------------------------------------------------------------
<TABLE>
<S>                     <C>                 <C>        <C>        <C>        <C>        <C>        <C>        <C>        <C>
  $      0- 26,250      $     $0- 43,050     20.10       3.75       4.38       5.01       5.63       6.26       6.88       7.51
  $ 26,251- 63,550      $ 43,851-105,950     34.70       4.59       5.36       6.13       6.89       7.66       8.42       9.19
  $ 63,551-132,600      $105,951-161,450     37.42       4.79       5.59       6.39       7.19       7.99       8.79       9.59
  $132,601-288,350      $161,451-288,350     41.95       5.17       6.03       6.89       7.75       8.61       9.47      10.34
OVER $288,350           OVER $288,350        45.22       5.48       6.39       7.30       8.21       9.13      10.04      10.95

<S>                    <C>        <C>        <C>        <C>
  $      0- 26,250       8.14       8.76       9.39      10.01
  $ 26,251- 63,550       9.95      10.72      11.48      12.25
  $ 63,551-132,600      10.39      11.19      11.98      12.78
  $132,601-288,350      11.20      12.06      12.92      13.78
OVER $288,350           11.87      12.78      13.69      14.60
</TABLE>

                          FOR NEW YORK CITY RESIDENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                            COMBINED
                                            EFFECTIVE
TAXABLE INCOME 2000*                        TAX RATE                           TAX-FREE YIELD OF
    SINGLE RETURN         JOINT RETURN          %          4%        4.5%        5%        5.5%        6%        6.5%
<S>                     <C>                 <C>         <C>        <C>        <C>        <C>        <C>        <C>
                                                                      IS EQUIVALENT TO A TAXABLE YIELD OF

<CAPTION>

TAXABLE INCOME 2000*    TAX-FREE YIELD OF
    SINGLE RETURN         7%        7.5%        8%
<S>                    <C>        <C>        <C>
                       IS EQUIVALENT TO A
                        TAXABLE YIELD OF
</TABLE>

- --------------------------------------------------------------------------------
<TABLE>
<S>                     <C>                 <C>        <C>        <C>        <C>        <C>        <C>        <C>        <C>
                        $      0- 43,850     23.94       5.26       5.92       6.57       7.23       7.89       8.55       9.20
  $      0- 26,250                           23.99       5.26       5.92       6.58       7.24       7.89       8.55       9.21
  $ 26,251- 63,550      $ 43,851-105,950     35.65       6.22       6.99       7.77       8.55       9.32      10.10      10.88
  $ 63,551-132,600      $105,951-161,450     38.33       6.49       7.30       8.11       8.92       9.73      10.54      11.35
$132,601-288,350        $161,451-288,350     42.80       6.99       7.87       8.74       9.62      10.49      11.36      12.24
OVER $288,350           OVER $288,350        46.02       7.41       8.34       9.26      10.19      11.12      12.04      12.97

<S>                    <C>        <C>
                         9.86      10.52
  $      0- 26,250       9.87      10.52
  $ 26,251- 63,550      11.66      12.43
  $ 63,551-132,600      12.16      12.97
$132,601-288,350        13.11      13.99
OVER $288,350           13.89      14.82
</TABLE>

                          FOR NEW YORK STATE RESIDENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                            COMBINED
                                            EFFECTIVE
TAXABLE INCOME 2000*                        TAX RATE                           TAX-FREE YIELD OF
    SINGLE RETURN         JOINT RETURN          %          4%        4.5%        5%        5.5%        6%        6.5%
<S>                     <C>                 <C>         <C>        <C>        <C>        <C>        <C>        <C>
                                                                      IS EQUIVALENT TO A TAXABLE YIELD OF

<CAPTION>

TAXABLE INCOME 2000*    TAX-FREE YIELD OF
    SINGLE RETURN         7%        7.5%        8%
<S>                    <C>        <C>        <C>
                       IS EQUIVALENT TO A
                        TAXABLE YIELD OF
</TABLE>

- --------------------------------------------------------------------------------
<TABLE>
<S>                     <C>                 <C>        <C>        <C>        <C>        <C>        <C>        <C>        <C>
  $      0- 26,250      $     $0- 43,850     20.82       5.05       5.68       6.31       6.95       7.58       8.21       8.84
  $ 26,251- 63,550      $ 43,851-105,950     32.93       5.96       6.71       7.46       8.20       8.95       9.69      10.44
  $ 63,551-132,600      $105,951-161,450     35.73       6.22       7.00       7.78       8.56       9.34      10.11      10.89
  $132,601-288,350      $161,451-288,350     40.38       6.71       7.55       8.39       9.23      10.06      10.90      11.74
OVER $288,350           OVER $288,350        43.74       7.11       8.00       8.89       9.78      10.66      11.55      12.44

<S>                    <C>        <C>
  $      0- 26,250       9.47      10.10
  $ 26,251- 63,550      11.18      11.93
  $ 63,551-132,600      11.67      12.45
  $132,601-288,350      12.58      13.42
OVER $288,350           13.33      14.22
</TABLE>

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 2000
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.

                                       9
<PAGE>
WHAT YOU CAN EXPECT FROM YOUR INVESTMENT

INCOME TWICE A YEAR

The Fund will pay you regular income twice a year. Your income may vary because
of:
  - elimination of one or more bonds from the Fund's portfolio because of calls,
    redemptions or sales;
  - a change in the Fund's expenses; or
  - 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):

<TABLE>
<S>              <C>  <C>
Estimated Annual         Estimated
Interest Income   -   Annual Expenses
- -------------------------------------
             Unit Price
</TABLE>

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:
- - a statement of income payments twice a year;
- - a notice from the Trustee when new bonds are deposited in exchange or
  substitution for bonds originally deposited;
- - an annual report on Fund activity; and
- - 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:
- - copies of bond evaluations to enable you to comply with federal and state tax
  reporting requirements; and
- - audited financial statements of the Fund.

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

                                       10
<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:
- - it no longer needs the money for the original purpose;
- - the project is condemned or sold;
- - the project is destroyed and insurance proceeds are used to redeem the bonds;
- - any related credit support expires and is not replaced; or
- - 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 a 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 California Portfolio's concentration in
lease rental bonds. Lease rental bonds are generally issued by governmental
financing authorities that cannot assess a tax to cover the cost of equipment or
construction of buildings that will be used by a state or local government. The
risks associated with these bonds include:
  - the failure of the government to appropriate funds for the leasing rental
    payments to service the bonds; and
  - rental obligations, and therefore payments, may terminate in the event of
    damages to or destruction or

                                       11
<PAGE>
    condemnation of the of the equipment or building.

Here is what you should know about New York Portfolio's concentration in
hospital and health care bonds:
  - 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;
  - hospitals face increasing competition resulting from hospital mergers and
    affiliations;
  - hospitals need to reduce costs as HMOs increase market penetration and
    hospital supply and drug companies raise prices; and
  - hospitals and health care providers are subject to various legal claims by
    patients and others and are adversely affected by increasing costs of
    insurance.
  - 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.
  - 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.
  - 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.

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

STATE CONCENTRATION RISKS

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.

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

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

STATE GOVERNMENT

The 1999-2000 Budget Act allocated a State budget of approximately $63.7 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:

  - In December, 1994, Orange County and its investment pool filed for
    bankruptcy.

                                       12
<PAGE>
    While a settlement has been reached, the full impact on the State and Orange
    County remains unknown.

  - 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 ability to pay their debts.

  - California's general obligation bonds are currently rated AA3 by Moody's and
    AA- 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:

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

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

  - 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 that could be affected by these
    provisions.

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:

  - the high combined state and local tax burden;

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

  - sensitivity to the financial services industry; and

  - dependence on federal aid.

STATE GOVERNMENT

The State government frequently has difficulty approving budgets on time. 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
over $2 billion are projected for each of the 2002, 2003, and 2004 fiscal years.
New York City faces fiscal pressures from:

  - aging public facilities that need repair or replacement;

  - welfare and medical costs;

  - expiring labor contracts; and

  - 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. $30.5 billion of combined City, MAC and PBC
debt is outstanding, and the City


                                       13
<PAGE>

proposes $20 billion of financing over fiscal 2000-2003. New York City currently
expects to reach its constitutional limits on debt issuance in fiscal 2001.


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

All of the bonds are backed by insurance companies (as shown under Defined
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 AAA 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:
  - limiting real property taxes,
  - reducing tax rates,
  - imposing a flat or other form of tax, or
  - 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:
  - ADDING the value of the bonds, net accrued interest, cash and any other Fund
    assets;
  - 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
  - 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.

As of the close of the initial offering period, the price you receive will be
reduced to reflect estimated organization costs.

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

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 28 years, but we
could discontinue it without prior notice for any business reason.

                                       14
<PAGE>
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:
  - if the New York Stock Exchange is closed (other than customary weekend and
    holiday closings);
  - 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
  - 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 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.

                                       15
<PAGE>
HOW THE FUND WORKS

PRICING

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

Bonds also carry accrued but unpaid interest up to the initial date of deposit.
To avoid having you pay this additional accrued interest (which earns no return)
when you buy, the Trustee advances this amount to the Sponsors. The Trustee
recovers this advance from interest received on the bonds.

In addition, a portion of the price of a unit also consists of cash to pay all
or some of the costs of organizing the Fund including:
  - cost of initial preparation of legal documents;
  - federal and state registration fees;
  - initial fees and expenses of the Trustee;
  - initial audit; and
  - 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

Interest on any bonds purchased on a when-issued basis or for a delayed delivery
does not begin to accrue until the bonds are delivered to the Fund. The Trustee
may reduce its fee to provide you with tax-exempt income for this non-accrual
period. If a bond is not delivered on time and the Trustee's annual fee and
expenses do not cover the additional accrued interest, we will treat the
contract to buy the bond as failed.

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:
  - to reimburse the Trustee for the Fund's operating expenses;
  - for extraordinary services and costs of indemnifying the Trustee and the
    Sponsors;
  - costs of actions taken to protect the Fund and other legal fees and
    expenses;
  - expenses for keeping the Fund's registration statement current; and
  - Fund termination expenses and any governmental charges.

The Sponsors are currently reimbursed up to 55 CENTS per $1,000 face amount
annually for providing portfolio supervisory, bookkeeping

                                       16
<PAGE>
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 Fund's registration statement yearly are
also now chargeable to the Fund. 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. Certain of these expenses were
previously paid for by the Sponsors. The Fund also pays the Evaluator's fees.

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

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 fails in the first 90 days of the Fund, we generally
will deposit a replacement tax-exempt bond with a similar yield, maturity,
rating and price.

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 may affect the
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:
  - diversity of the portfolio;
  - size of the Fund relative to its original size;
  - ratio of Fund expenses to income;
  - current and long-term returns;
  - degree to which units may be selling at a premium over par; and
  - 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

                                       17
<PAGE>
price may continue to be held by the Trustee in a liquidating trust pending its
final sale.

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:
  - to cure ambiguities;
  - to correct or supplement any defective or inconsistent provision;
  - to make any amendment required by any governmental agency; or
  - 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:
  - it fails to perform its duties and the Sponsors determine that its
    replacement is in your best interest; or
  - 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:
  - remove it and appoint a replacement Sponsor;
  - liquidate the Fund; or
  - 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.

                                       18
<PAGE>
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 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 and their underwriting percentages are:
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (a wholly-owned subsidiary of
Merrill Lynch & Co., Inc.)
P.O. Box 9051,
Princeton, NJ 08543-9051                                                  67.50%
SALOMON SMITH BARNEY INC. (an indirectly wholly-owned subsidiary of Citigroup
Inc.)
388 Greenwich Street--23rd Floor,
New York, NY 10013                                                        12.50%
DEAN WITTER REYNOLDS INC. (a principal operating subsidiary of Morgan Stanley
Dean Witter & Co.)
Two World Trade Center--59th Floor,
New York, NY 10048                                                         7.50%
PAINEWEBBER INCORPORATED (a wholly-owned subsidiary of PaineWebber Group Inc.)
1285 Avenue of the Americas,
New York, NY 10019                                                        12.50%
                                                                         100.00%

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 Bank of New York, Unit Investment Trust Department, P.O. Box 974, Wall
Street Division, New York, New York 10268-0974, 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. Sponsors also realize a
profit or loss on deposit of the bonds shown under Defined Portfolios. 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.
None of the bonds in either of the Portfolio were purchased from any of the
Sponsors.

During the initial offering period, the Sponsors also may realize profits or
sustain losses on units they hold. 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

During the initial offering period, units will be distributed to the public by
the Sponsors and

                                       19
<PAGE>
dealers who are members of the National Association of Securities Dealers, Inc.
This period is 30 days or less if all units are sold. The Sponsors may extend
the initial period up to 120 days.

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.

In the initial offering period, the concession to dealers will be $21 per 1,000
units. We may change the concession at any time. Dealers may resell units to
other dealers with a concession not in excess of the original concession to
dealers.

CODE OF ETHICS

The Portfolio and the Agent for the Sponsors have each adopted a code of ethics
requiring pre-clearance and reporting of personal securities transactions by its
employees with access to information on Portfolio transactions. Subject to
certain conditions, the codes permit employees to invest in Portfolio securities
for their own accounts. The codes are designed to prevent fraud, deception and
misconduct against the Portfolio and to provide reasonable standards of conduct.
These codes are on file with the Commission and you may obtain a copy by
contacting the Commission at the address listed on the back cover of this
prospectus.

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"). To date, we are not aware of any major operational difficulties
resulting from the computer system changes necessary to prepare for the Year
2000. However, there can be no assurance that the Year 2000 Problem will not
adversely affect the issuers of the securities contained in the Portfolio. We
cannot predict whether any impact would be material to the Portfolio 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 or subject to
special rules. 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 may be taken
into account in determining your preference items for alternative minimum tax
purposes. 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 of bond proceeds) 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.

                                       20
<PAGE>
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.

GAIN 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 in each bond for more than one year and short-term otherwise.
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.

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.

                                       21
<PAGE>
NEW YORK 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.

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.

                                       22
<PAGE>
                       REPORT OF INDEPENDENT ACCOUNTANTS

The Sponsors, Trustee and Holders of Municipal Investment Trust Fund, Multistate
Series--414, Defined Asset Funds (California and New York Insured Trusts) (the
"Fund"):

We have audited the accompanying statements of condition and the related
portfolios included in the prospectus of the Fund as of April 26, 2000. 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 audits 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. Our procedures included
confirmation of cash, securities and an irrevocable letter of credit deposited
for the purchase of securities, as described in the statements of condition,
with 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 the Fund as of April 26, 2000
in conformity with generally accepted accounting principles.

DELOITTE & TOUCHE LLP
New York, NY
April 26, 2000

                  STATEMENTS OF CONDITION AS OF APRIL 26, 2000

TRUST PROPERTY


<TABLE>
<CAPTION>
                                                                CALIFORNIA                 NEW YORK
                                                                PORTFOLIO                 PORTFOLIO
                                                           --------------------      --------------------
<S>                                                        <C>                       <C>
Investments--Bonds and Contracts to purchase Bonds(1)      $       3,857,905.35      $       3,870,243.20
Cash                                                                   8,000.00                  8,000.00
Accrued interest to initial date of deposit on underlying
  Bonds                                                               32,559.46                 61,965.03
                                                           --------------------      --------------------
    Total                                                  $       3,898,464.81      $       3,940,208.23
                                                           ====================      ====================
LIABILITIES AND INTEREST OF HOLDERS
Liabilities:
    Advance by Trustee for accrued interest(2)             $          32,559.46      $          61,965.03
    Reimbursement of Sponsors for organization
      expenses(3)                                                      8,000.00                  8,000.00
                                                           --------------------      --------------------
    Subtotal                                                          40,559.46                 69,965.03
                                                           --------------------      --------------------
Interest of Holders of units of fractional undivided
  interest outstanding
  (California Portfolio--4,000,000; New York
  Portfolio--4,000,000)
    Cost to investors(3)(4)(5)                                     3,904,105.35              3,916,563.20
    Organization expenses(3) and gross underwriting
      commissions(4)                                                 (46,200.00)               (46,320.00)
                                                           --------------------      --------------------

    Subtotal                                                       3,857,905.35              3,870,243.20
                                                           --------------------      --------------------

    Total                                                  $       3,898,464.81      $       3,940,208.23
                                                           ====================      ====================
</TABLE>


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

    (1) Aggregate cost to the Fund of the bonds listed under each portfolio is
based upon the offer side evaluation determined by the Evaluator at the
evaluation time on the business day prior to the initial date of deposit. The
contracts to purchase the bonds are collateralized by an irrevocable letter of
credit which has been issued by San Paolo Bank, New York Branch, in the amount
of $7,745,679.32 deposited with the Trustee. The amount of the letter of credit
includes $7,649,317.00 for the purchase of $8,150,000 face amount of the bonds,
plus $96,362.32 for accrued interest.

    (2) Representing a special distribution to the Sponsors by the Trustee of an
amount equal to the accrued interest on the bonds.
    (3) A portion of the Unit Price consists of cash in an amount sufficient to
pay for costs incurred in establishing the Fund. These costs have been estimated
at $2.00 per 1,000 Units. A distribution will be made at the close of the
initial offering period to an account maintained by the Trustee from which the
organizational expense obligation of the investors to the Sponsors will be
satisfied. If the actual organization costs exceed the estimated aggregate
amount shown above, the Sponsors will pay for this excess amount.
    (4) Assumes the maximum up-front sales fee per 1,000 units of 1.00% of the
Public Offering Price. A deferred sales fee of $19.00 per 1,000 units is payable
over a two-year period ($2.38 per 1,000 units quarterly in the first year and
$2.37 per 1,000 units quarterly in the second year). Distributions will be made
to an account maintained by the Trustee from which the deferred sales fee
obligation of the investors will be satisfied. If units are redeemed prior to
the end of second anniversary of the Fund, the remaining portion of the deferred
sales fee applicable to such units will be transferred to the account on the
redemption date.
    (5) Aggregate Unit Price (exclusive of interest) computed on the basis of
the offer side evaluation of the underlying bonds as of the evaluation time on
the business day prior to the Initial Date of Deposit.

                                       23
<PAGE>
DEFINED ASSET FUNDS-R-

<TABLE>
<S>                                      <C>
HAVE QUESTIONS ?                         MUNICIPAL DEFINED FUND
Request the most                         MULTISTATE SERIES--414
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 Bank of New York                     investment company filed with the
1-800-221-7771                           Securities and Exchange Commission in
                                         Washington, D.C. under the:
                                         - Securities Act of 1933 (file no.
                                         333-95345) and
                                         - 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.
                                                                  100617RR--4/00
</TABLE>
<PAGE>
                                    PART II
             ADDITIONAL INFORMATION NOT INCLUDED IN THE PROSPECTUS

<TABLE>
<S>                                                                     <C>                   <C>
       A. The following information relating to the Depositors is incorporated by reference to the SEC filings
indicated and made a part of this Registration Statement.
</TABLE>

 I. Bonding arrangements of each of the Depositors are incorporated by reference
to Item A of Part II to the Registration Statement on Form S-6 under the
Securities Act of 1933 for Municipal Investment Trust Fund, Monthly Payment
Series--573 Defined Asset Funds (Reg. No. 333-08241).

 II. The date of organization of each of the Depositors is set forth in Item B
of Part II to the Registration Statement on Form S-6 under the Securities Act of
1933 for Municipal Investment Trust Fund, Monthly Payment Series--573 Defined
Asset Funds (Reg. No. 333-08241) and is herein incorporated by reference
thereto.

III. The Charter and By-Laws of each of the Depositors are incorporated herein
by reference to Exhibits 1.3 through 1.12 to the Registration Statement on Form
S-6 under the Securities Act of 1933 for Municipal Investment Trust Fund,
Monthly Payment Series--573 Defined Asset Funds (Reg. No. 333-08241).

IV. Information as to Officers and Directors of the Depositors has been filed
pursuant to Schedules A and D of Form BD under Rules 15b1-1 and 15b3-1 of the
Securities Exchange Act of 1934 and is incorporated by reference to the SEC
filings indicated and made a part of this Registration Statement:

<TABLE>
<S>                                                                     <C>                   <C>
          Merrill Lynch, Pierce, Fenner & Smith Incorporated..........         8-7221
          Salomon Smith Barney Inc. ..................................         8-8177
          PaineWebber Incorporated....................................        8-16267
          Dean Witter Reynolds Inc. ..................................        8-14172
</TABLE>

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

    B. The Internal Revenue Service Employer Identification Numbers of the
Sponsors and Trustee are as follows:

<TABLE>
<S>                                                                     <C>                   <C>
          Merrill Lynch, Pierce, Fenner & Smith Incorporated..........       13-5674085
          Salomon Smith Barney Inc. ..................................       13-1912900
          PaineWebber Incorporated....................................       13-2638166
          Dean Witter Reynolds Inc. ..................................       94-0899825
          The Bank of New York, Trustee...............................       13-4941102
</TABLE>

                                  UNDERTAKING

The Sponsors undertake that they will not instruct the Trustee to accept from
(i) Asset Guaranty Reinsurance Company, Municipal Bond Investors Assurance
Corporation or any other insurance company affiliated with any of the Sponsors,
in settlement of any claim, less than an amount sufficient to pay any principal
or interest (and, in the case of a taxability redemption, premium) then due on
any Security in accordance with the municipal bond guaranty insurance policy
attached to such Security or (ii) any affiliate of the Sponsors who has any
obligation with respect to any Security, less than the full amount due pursuant
to the obligation, unless such instructions have been approved by the Securities
and Exchange Commission pursuant to Rule 17d-1 under the Investment Company Act
of 1940.

                                      II-1
<PAGE>
                   SERIES OF MUNICIPAL INVESTMENT TRUST FUND
        DESIGNATED PURSUANT TO RULE 487 UNDER THE SECURITIES ACT OF 1933

<TABLE>
<CAPTION>
                                                                      SEC
SERIES NUMBER                                                     FILE NUMBER
- -------------                                                     -----------
<S>                                                           <C>
Multistate Series 401.......................................       333-57375
</TABLE>

                       CONTENTS OF REGISTRATION STATEMENT

The Registration Statement on Form S-6 comprises the following papers and
documents:

    The facing sheet of Form S-6.

    The Cross-Reference Sheet (incorporated by reference to the Cross-Reference
Sheet to the Registration Statement of Defined Asset Funds Municipal Series,
1933 Act File No. 33-54565).

    The Prospectus.

    Additional Information not included in the Prospectus (Part II).

The following exhibits:

<TABLE>
     <S>     <C>
       1.1   -- Form of Trust Indenture (incorporated by reference to Exhibit 1.1 to
             the Registration Statement of Defined Asset Funds Municipal Defined Fund
               Series 2, 1933 Act File No. 333-61285).
             -- Form of Standard Terms and Conditions of Trust Effective October 21,
      1.1.1  1993 (incorporated by reference to Exhibit 1.1.1 to the Registration
               Statement of Municipal Investment Trust Fund, Multistate Series--48,
               1933 Act File No. 33-50247).
             -- Merrill Lynch Code of Ethics (incorporated by reference to Exhibit
     1.11.1  1.11.1 to the Post Effective Amendment No. 8 to the Registration
               Statement of Municipal Investment Trust Fund, Insured Series 186, 1933
               Act File No. 33-49159).
             -- Municipal Investment Trust Fund Code of Ethics (incorporated by
     1.11.2  reference to Exhibit 1.11.2 to the Post Effective Amendment No. 8 to the
               Registration Statement of Municipal Investment Trust Fund, Insured
               Series 186, 1933 Act File No. 33-49159).
       1.2   -- Form of Master Agreement Among Underwriters (incorporated by
             reference to Exhibit 1.2 to the Registration Statement of The Corporate
               Income Fund, One Hundred Ninety-Fourth Monthly Payment Series, 1933
               Act File No. 2-90925).
       2.1   --Form of Certificate of Beneficial Interest (included in Exhibit
             1.1.1).
       3.1   -- Opinion of counsel as to the legality of the securities being issued
             including their consent to the use of their name under the headings "How
               The Fund Works--Legal Opinion" in the Prospectus.
       4.1   --Consent of the Evaluator.
       5.1   --Consent of independent accountants.
       9.1   -- Information Supplement (incorporated by reference to Exhibit 9.1 to
             the Registration Statement of Municipal Investment Trust Fund,
               Multistate Series--409, 1933 Act File No. 333-81777).
</TABLE>

                                      R-1
<PAGE>
                              DEFINED ASSET FUNDS
                        MUNICIPAL INVESTMENT TRUST FUND
                               MULTISTATE SERIES
                                   SIGNATURES

    The registrant hereby identifies the series number of Defined Asset Funds
listed on page R-1 for the purposes of the representations required by Rule 487
and represents the following:

    1) That the portfolio securities deposited in the series as to which this
       registration statement is being filed do not differ materially in type or
       quality from those deposited in such previous series;

    2) That, except to the extent necessary to identify the specific portfolio
       securities deposited in, and to provide essential information for, the
       series with respect to which this registration statement is being filed,
       this registration statement does not contain disclosures that differ in
       any material respect from those contained in the registration statements
       for such previous series as to which the effective date was determined by
       the Commission or the staff; and

    3) That it has complied with Rule 460 under the Securities Act of 1933.

PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THE REGISTRANT HAS
DULY CAUSED THIS REGISTRATION STATEMENT OR AMENDMENT TO THE REGISTRATION
STATEMENT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED THEREUNTO DULY
AUTHORIZED IN THE CITY OF NEW YORK AND STATE OF NEW YORK ON THE 26TH DAY OF
APRIL, 2000.

               SIGNATURES APPEAR ON PAGES R-3, R-4, R-5 AND R-6.

    A majority of the members of the Board of Directors of Merrill Lynch,
Pierce, Fenner & Smith Incorporated has signed this Registration Statement or
Amendment to the Registration Statement pursuant to Powers of Attorney
authorizing the person signing this Registration Statement or Amendment to the
Registration Statement to do so on behalf of such members.

    A majority of the members of the Board of Directors of Salomon Smith Barney
Inc. has signed this Registration Statement or Amendment to the Registration
Statement pursuant to Powers of Attorney authorizing the person signing this
Registration Statement or Amendment to the Registration Statement to do so on
behalf of such members.

    A majority of the members of the Executive Committee of the Board of
Directors of PaineWebber Incorporated has signed this Registration Statement or
Amendment to the Registration Statement pursuant to Powers of Attorney
authorizing the person signing this Registration Statement or Amendment to the
Registration Statement to do so on behalf of such members.

{sp2m]A majority of the members of the Board of Directors of Dean Witter
Reynolds Inc. has signed this Registration Statement or Amendment to the
Registration Statement pursuant to Powers of Attorney authorizing the person
signing this Registration Statement or Amendment to the Registration Statement
to do so on behalf of such members.

                                      R-2
<PAGE>
               MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
                                   DEPOSITOR

<TABLE>
<S>                                       <C>
By the following persons, who constitute  Powers of Attorney have been filed
  a majority of                             under
  the Board of Directors of Merrill         Form SE and the following 1933 Act
  Lynch, Pierce,                            File
  Fenner & Smith Incorporated:              Number: 333-70593
</TABLE>

     GEORGE A. SCHIEREN
     JOHN L. STEFFENS
     By
       JAY M. FIFE
       (As authorized signatory for Merrill Lynch, Pierce,
       Fenner & Smith Incorporated and
       Attorney-in-fact for the persons listed above)

                                      R-3
<PAGE>
                           SALOMON SMITH BARNEY INC.
                                   DEPOSITOR

<TABLE>
<S>                                                           <C>
By the following persons, who constitute a majority of        Powers of Attorney
  the Board of Directors of Salomon Smith Barney Inc.:          have been filed
                                                                under the 1933 Act
                                                                File Numbers:
                                                                333-63417 and
                                                                333-63033.
</TABLE>

     MICHAEL CARPENTER
     DERYCK C. MAUGHAN

     By GINA LEMON
       (As authorized signatory for
       Salomon Smith Barney Inc. and
       Attorney-in-fact for the persons listed above)

                                      R-4
<PAGE>
                            PAINEWEBBER INCORPORATED
                                   DEPOSITOR

<TABLE>
<S>                                       <C>
By the following persons, who constitute  Powers of Attorney have been filed
  the Board of Directors of PaineWebber     under
  Incorporated:                             the following 1933 Act File
                                            Number: 2-61279
</TABLE>

     MARGO N. ALEXANDER
     TERRY L. ATKINSON
     BRIAN M. BAREFOOT
     STEVEN P. BAUM
     MICHAEL CULP
     REGINA A. DOLAN
     JOSEPH J. GRANO, JR.
     EDWARD M. KERSCHNER
     JAMES P. MacGILVRAY
     DONALD B. MARRON
     ROBERT H. SILVER
     MARK B. SUTTON
     By ROBERT E. HOLLEY
       (As authorized signatory for
       PaineWebber Incorporated
       and Attorney-in-fact for the persons listed above)

                                      R-5
<PAGE>
                           DEAN WITTER REYNOLDS INC.
                                   DEPOSITOR

<TABLE>
<S>                                       <C>
By the following persons, who constitute  Powers of Attorney have been filed
  a majority of                             under Form SE and the following 1933
  the Board of Directors of Dean Witter     Act File Numbers: 33-17085,
  Reynolds Inc.:                            333-13039, 333-47553 and 333-89009
</TABLE>

     BRUCE F. ALONSO
     RICHARD M. DeMARTINI
     RAYMOND J. DROP
     JAMES F. HIGGINS
     JOHN J. MACK
     MITCHELL M. MERIN
     STEPHEN R. MILLER
     PHILIP J. PURCELL
     JOHN H. SCHAEFER
     THOMAS C. SCHNEIDER
     ALAN A. SCHRODER
     ROBERT G. SCOTT
     By MICHAEL D. BROWNE
       (As authorized signatory for
       Dean Witter Reynolds Inc.
       and Attorney-in-fact for the persons listed above)

                                      R-6
<PAGE>
                                                                     EXHIBIT 3.1

                             DAVIS POLK & WARDWELL
                              450 LEXINGTON AVENUE
                            NEW YORK, NEW YORK 10017
                                 (212) 450-4000

                                                                  APRIL 26, 2000

Municipal Investment Trust Fund,
Multistate Series--414
Defined Asset Funds

Merrill Lynch, Pierce, Fenner & Smith Incorporated
Salomon Smith Barney Inc.
PaineWebber Incorporated
Dean Witter Reynolds Inc.

c/o Merrill Lynch, Pierce, Fenner & Smith Incorporated
   Defined Asset Funds
   P.O. Box 9051
   Princeton, NJ 08543-9051

Dear Sirs:

    We have acted as special counsel for you, as sponsors (the "Sponsors") of
Multistate Series--414 of Municipal Investment Trust Fund, Defined Asset Funds
(the "Trusts"), in connection with the issuance of units of fractional undivided
interest in the Trusts (the "Units") in accordance with the Trust Indenture
relating to the Trusts (the "Indentures").

    We have examined and are familiar with originals or copies, certified or
otherwise identified to our satisfaction, of such documents and instruments as
we have deemed necessary or advisable for the purpose of this opinion.

    Based upon the foregoing, we are of the opinion that (i) the execution and
delivery of the Indenture and the issuance of the Units have been duly
authorized by the Sponsors and (ii) the Units, when duly issued and delivered by
the Sponsors and the Trustee in accordance with the applicable Indentures, will
be legally issued, fully paid and non-assessable.

    We hereby consent to the use of this opinion as Exhibit 3.1 to the
Registration Statement relating to the Units filed under the Securities Act of
1933 and to the use of our name in such Registration Statement and in the
related prospectus under the heading "How The Fund Works--Legal Opinion".

                                          Very truly yours,
                                          DAVIS POLK & WARDWELL
<PAGE>
                                                                     EXHIBIT 4.1

KENNY INFORMATION SYSTEMS,
A Division of J. J. Kenny Co., Inc.
55 Water St., 45th Floor
New York, New York 10041
Telephone: 212-438-2000
Frank A. Ciccotto, Jr.
Vice President

                                                                  April 26, 2000

<TABLE>
<S>                                       <C>
Merrill Lynch Pierce Fenner & Smith
Incorporated
Defined Asset Funds
P.O. Box 9051
Princeton, NJ 08543-9051
The Bank of New York
Unit Investment Trust Department
P.O. Box 974
Wall Street Division
New York, N.Y. 10268-0974
</TABLE>

Re: MUNICIPAL INVESTMENT TRUST FUND, MULTISTATE SERIES--414, DEFINED ASSET FUNDS

Gentlemen:

    We have examined the Registration Statement File No. 333-95345 for the
above-captioned fund. We hereby acknowledge that Kenny Information Systems, a
Division of J. J. Kenny Co., Inc. is currently acting as the evaluator for the
fund. We hereby consent to the use in the Registration Statement of the
reference to Kenny Information Systems, a Division of J. J. Kenny Co., Inc. as
evaluator.

    In addition, we hereby confirm that the ratings indicated in the
Registration Statement for the respective bonds comprising the trust portfolio
are the ratings indicated in our KENNYBASE database as of the date of the
Evaluation Report.

    You are hereby authorized to file a copy of this letter with the Securities
and Exchange Commission.

                                          Sincerely,

                                          FRANK A. CICCOTTO, JR.
                                          VICE PRESIDENT
<PAGE>
                                                                     EXHIBIT 5.1
                       CONSENT OF INDEPENDENT ACCOUNTANTS

The Sponsors and Trustee of Municipal Investment Trust Fund, Multistate
Series--414, Defined Asset Funds (California and New York Insured Trusts):

We consent to the use in this Registration Statement No. 333-95345 of our report
dated April 26, 2000 relating to the Statements of Condition of Municipal
Investment Trust Fund, Multistate Series--414, Defined Asset Funds (California
and New York Insured Trusts) and to the reference to us under the heading "How
the Fund Works--Auditors" in the Prospectus which is a part of this Registration
Statement.

DELOITTE & TOUCHE LLP
New York, NY
April 26, 2000


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