MUNICIPAL INVESTMENT TR FD MULTISTATE SER 418 DEF ASSET FDS, 487, 2000-11-08

MUNICIPAL INVESTMENT TR FD MULTISTATE SER 418 DEF ASSET FDS
487, 2000-11-08

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<PAGE>

AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 8, 2000

REGISTRATION NO. 333-47664

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

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549
---------------------------------

AMENDMENT NO. 1
TO
FORM S-6
---------------------------------

FOR REGISTRATION UNDER THE SECURITIES ACT
OF 1933 OF SECURITIES OF UNIT INVESTMENT
TRUSTS REGISTERED ON FORM N-8B-2

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

A. EXACT NAME OF TRUST:
MUNICIPAL INVESTMENT TRUST FUND

MULTISTATE SERIES--418

DEFINED ASSET FUNDS

B. NAME OF DEPOSITOR:

MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
SALOMON SMITH BARNEY INC.
PAINEWEBBER INCORPORATED
DEAN WITTER REYNOLDS INC.

C. COMPLETE ADDRESSES OF DEPOSITORS' PRINCIPAL EXECUTIVE OFFICES:

<TABLE>
<S> <C>
MERRILL LYNCH, PIERCE, PAINEWEBBER INCORPORATED
FENNER & 1285 AVENUE OF THE
SMITH INCORPORATED AMERICAS
UNIT INVESTMENT TRUST NEW YORK, NY 10019
DIVISION
P.O. BOX 9051
PRINCETON, NJ 08543-9051
SALOMON SMITH BARNEY INC. DEAN WITTER REYNOLDS INC.
388 GREENWICH TWO WORLD TRADE
STREET--23RD FLOOR CENTER--59TH FLOOR
NEW YORK, NY 10013 NEW YORK, NY 10048
</TABLE>

D. NAMES AND COMPLETE ADDRESSES OF AGENTS FOR SERVICE:

<S> <C> <C>
TERESA KONCICK, ESQ.
P.O. BOX 9051
PRINCETON, NJ 08543-9051
ROBERT E. HOLLEY
1200 HARBOR BLVD.
WEEHAWKEN, NJ 07087
COPIES TO: DOUGLAS LOWE, ESQ.
MICHAEL KOCHMANN NORA M. JORDAN, ESQ. DEAN WITTER REYNOLDS INC.
388 GREENWICH STREET 450 LEXINGTON AVENUE TWO WORLD TRADE
NEW YORK, NY 10013 NEW YORK, NY 10017 CENTER--59TH FLOOR
NEW YORK, NY 10048
</TABLE>

E. TITLE OF SECURITIES BEING REGISTERED:

An indefinite number of Units of Beneficial Interest pursuant to Rule 24f-2
promulgated under the Investment Company Act of 1940, as amended.

F. APPROXIMATE DATE OF PROPOSED SALE TO PUBLIC:

As soon as practicable after the effective date of the Registration Statement.

/X/ Check box if it is proposed that this filing will become effective upon
filing on November 8, 2000, pursuant to Rule 487.

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

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

MUNICIPAL INVESTMENT TRUST FUND
MULTISTATE SERIES--418
(A UNIT INVESTMENT TRUST)

- FLORIDA AND NEW JERSEY PORTFOLIOS
- PORTFOLIOS OF INSURED LONG-TERM MUNICIPAL BONDS
- DESIGNED TO BE FREE OF REGULAR FEDERAL INCOME TAX
- EXEMPT FROM SOME STATE TAXES
- MONTHLY INCOME DISTRIBUTIONS

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 November 8, 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.

CONTENTS

<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Florida Insured Portfolio.........................
Risk/Return Summary and Portfolio............... 3
New Jersey Insured Portfolio......................
Risk/Return Summary and Portfolio............... 6
What You Can Expect From Your Investment.......... 10
Regular Monthly Income.......................... 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......................... 13
Bond Quality Risk............................... 13
Insurance Related Risk.......................... 13
Litigation and Legislation Risks................ 14
Selling or Exchanging Units....................... 14
Sponsors' Secondary Market...................... 14
Selling Units to the Trustee.................... 14
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............. 20
Public Distribution............................. 20
Code of Ethics.................................. 20
Year 2000 Issues................................ 20
Taxes............................................. 21
Supplemental Information.......................... 23
Financial Statements.............................. 24
Report of Independent Auditors.................. 24
Statements of Condition......................... 24
</TABLE>

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

FLORIDA INSURED PORTFOLIO--RISK/RETURN SUMMARY

1. WHAT IS THE FUND'S OBJECTIVE?
The Fund seeks interest income that is exempt from regular federal income
taxes and some state and local taxes by investing in a fixed portfolio
consisting primarily of insured, long-term municipal revenue bonds.

2. WHAT ARE MUNICIPAL REVENUE BONDS?
Municipal revenue bonds are bonds issued by states, municipalities and public
authorities to finance the cost of buying, building or improving various
projects intended to generate revenue, such as airports, 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 $4,000,000 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 by Standard & Poor's.
- 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>
<CAPTION>
APPROXIMATE
PORTFOLIO
PERCENTAGE
<S> <C>
-Municipal Water/Sewer Utilities 29%
-Special Tax 25
-General Obligation 15
-Housing 15
-Hospitals/Health Care 15
-Lease Rental 1
</TABLE>

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 municipal water/sewer utility bonds
and special tax bonds, adverse developments in these sectors 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 FLORIDA BONDS, SO IT IS LESS
DIVERSIFIED THAN A NATIONAL FUND AND IS SUBJECT TO RISKS PARTICULAR TO
FLORIDA, WHICH ARE BRIEFLY DESCRIBED LATER IN THIS PROSPECTUS UNDER STATE
CONCENTRATION RISKS.

DEFINING YOUR INCOME
AND ESTIMATING YOUR RETURN

<TABLE>
<S> <C>
WHAT YOU MAY EXPECT (Record Day: 10th day of each
month)
First distribution per 1,000 units (12/25/00): $4.50
Regular Monthly Income per 1,000 units
(beginning 1/25/01): $4.22
Annual Income per 1,000 units: $50.67
THESE FIGURES ARE ESTIMATES ON THE BUSINESS DAY BEFORE THE
INITIAL DATE OF DEPOSIT; ACTUAL PAYMENTS MAY VARY.
Estimated Current Return 5.08%
Estimated Long Term Return 5.19%
RETURNS WILL VARY (SEE PAGE 10).
</TABLE>

3
<PAGE>
--------------------------------------------------------------------------------

FLORIDA INSURED PORTFOLIO

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

Multistate Series--418

<TABLE>
<CAPTION>
RATING COST
PORTFOLIO TITLE COUPON MATURITY (1) OF ISSUES (2) TO FUND (3)
<C> <S> <C> <C> <C> <C>
------------------------------------------------------------------------------------
GENERAL OBLIGATION (15%):
1. $600,000 Palm Beach 5.50% 6/1/31 AAA $ 595,578.00
Cnty., FL, Indl. Dev.
Rev. Bonds (South Florida
Fair Proj.), Ser. 2000
(AMBAC Ins.)
HOUSING (15%):
2. $600,000 Florida Hsg. 5.75 10/1/30 Aaa(m) 602,526.00
Fin. Corp., Hsg. Rev.
Bonds (Augustine Club
Apts., Plantation and
Woodlake at Killearn
Apts.), 2000 Ser. D-1
(MBIA Ins.)
HOSPITAL/HEALTH CARE (15%):
3. $600,000 City of Tampa, 4.875 11/15/23 AAA 536,958.00
FL, Hlth. Sys. Rev. Bonds
(Catholic Hlth. East
Issue), Ser. 1998 A-1
(MBIA Ins)
LEASE RENTAL (1%):
4. $35,000 Miami Dade Cnty., 4.25 8/1/01 AAA 35,035.35
FL, Sch. Bd. Ser. B
(AMBAC Ins.)(4)
MUNICIPAL WATER/SEWER UTILITY (29%):
5. $565,000 City of 5.375 12/1/30 AAA 554,643.55
Clermont, FL, Wtr. and
Swr. Rev. Rfdg. Bonds,
Ser. 2000 (FSA Ins.)
6. $35,000 City of Miami 4.50 9/1/02 AAA 35,149.45
Beach, FL, Stormwater
Rev. Bonds, Ser. 2000
(Financial Guaranty
Ins.)(4)
7. $600,000 City of Miami 5.375 9/1/30 AAA 589,014.00
Beach, FL, Stormwater
Rev. Bonds, Ser. 2000
(Financial Guaranty Ins.)
8. $5,000 Collier Cnty., 3.60 7/1/03 AAA 4,906.85
Wtr. Swr Dist., FL, Wtr.
and Swr. Rfdg. Rev.
Bonds, Ser. 1999 A
(Financial Guaranty
Ins.)(4)
SPECIAL TAX (25%):
9. $535,000 Dade Cnty., FL, 5.00 10/1/37 AAA 488,984.65
Special Oblig. and Rfdg.
Bonds, Ser. 1996 B (MBIA
Ins.)
10. $500,000 Orange Cnty., 5.50 10/1/31 AAA 496,295.00
FL, Tourist Dev. Tax Rev.
Bonds, Ser. 2000 (AMBAC
Ins.)
-------------
$3,939,090.85
=============
</TABLE>

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

(1) Approximately 28% of the Portfolio is callable beginning in 2008; 27% is
callable in 2009, and the remaining long-term bonds are callable in 2010
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. An AAA rating
indicates highest quality bonds with a very strong capacity to pay interest
and repay principal.
(3) Approximately 71% of the bonds were deposited at a discount from par, 17%
were deposited at a premium and 12% at par. Sponsors' profit on deposit was
$50,524.35.
(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>
--------------------------------------------------------------------------------

FLORIDA INSURED PORTFOLIO (CONTINUED)

5. IS THIS FUND APPROPRIATE FOR YOU?
Yes, if you want monthly income free from regular federal tax. You will
benefit from a professionally selected and supervised portfolio whose risk is
reduced by investing in insured bonds of several different issuers.

The Fund is NOT appropriate for you if you want a speculative investment that
changes to take advantage of market movements, if you do not want a
tax-advantaged investment or if you cannot tolerate any risk.

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.

<TABLE>
<S> <C>
INVESTOR FEES
Maximum Sales Fee (Load) on new
purchases (as a percentage of $1,000
invested) 2.90%
</TABLE>

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). If you
hold units in certain eligible accounts offered by the Sponsors, you will pay
no sales fee. 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>
<CAPTION>
YOUR MAXIMUM
SALES FEE
IF YOU INVEST: WILL BE:
-------------- ------------
<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>

ESTIMATED ANNUAL FUND OPERATING EXPENSES

<TABLE>
<CAPTION>
AS A % OF AMOUNT
$1,000 PER 1,000
INVESTED UNITS
--------- ---------
<S> <C> <C>
Trustee's Fee .071% $0.71
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses) .055% $0.55
Evaluator's Fee .033% $0.32
Other Operating Expenses .067% $0.67
------- -----
TOTAL .226% $2.25
</TABLE>

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

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>
<S> <C> <C> <C>
1 Year 3 Years 5 Years 10 Years
$333 $383 $438 $599
</TABLE>

You will pay the following expenses if you do not sell your units:

<TABLE>
<S> <C> <C> <C>
1 Year 3 Years 5 Years 10 Years
$238 $383 $438 $599
</TABLE>

7. HOW HAVE SIMILAR FUNDS PERFORMED IN THE PAST?

In the following chart we show past performance of prior Florida Portfolios,
which had investment objectives, strategies and types of bonds substantially
similar to this Fund. These prior Series differed in that they charged a
higher sales fee. These prior Florida Series were offered between after 1987
and were outstanding on September 30, 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 9/30/00.

<TABLE>
<CAPTION>
WITH SALES FEE NO SALES FEE
1 YEAR 5 YEARS 1 YEAR 5 YEARS
<S> <C> <C> <C> <C>
-------------------------------------------------------------
High 6.93% 5.09% 7.48% 6.17%
Average 3.67 4.29 5.84 5.36
Low 2.22 2.70 3.48 3.53
-------------------------------------------------------------
Average
Sales fee 2.07% 5.15%
-------------------------------------------------------------
</TABLE>

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

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

FLORIDA INSURED PORTFOLIO (CONTINUED)

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.

<TABLE>
<S> <C>
UNIT PRICE PER 1,000 UNITS $996.58
(as of November 7, 2000)
</TABLE>

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.

<TABLE>
<S> <C>
UNIT PAR VALUE $1.00
</TABLE>

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 monthly.

In the opinion of bond counsel when each bond was issued, interest on the
bonds in this Fund is generally 100% exempt from regular federal income tax.
Your income may also be exempt from some Florida state and local taxes if you
live in Florida.

You will also receive principal payments if bonds are sold or called or
mature, when the cash available is more than $5.00 per 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, but the securities are generally not
insured. Income from this program will generally be subject to state and
local income taxes. FOR MORE COMPLETE INFORMATION ABOUT THE PROGRAM,
INCLUDING CHARGES AND FEES, ASK THE TRUSTEE FOR THE PROGRAM'S PROSPECTUS.
READ IT CAREFULLY BEFORE YOU INVEST. THE TRUSTEE MUST RECEIVE YOUR WRITTEN
ELECTION TO REINVEST AT LEAST 10 DAYS BEFORE THE RECORD DAY OF AN INCOME
PAYMENT.

EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain other Defined Asset
Funds. You may also exchange into this Fund from certain other funds. We
charge a reduced sales fee on exchanges.

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

NEW JERSEY INSURED PORTFOLIO--RISK/RETURN SUMMARY

3. WHAT IS THE FUND'S INVESTMENT STRATEGY?

- The Fund plans to hold to maturity 8 long-term municipal bonds with an
aggregate face amount of $4,000,000 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 or Moody's.
- 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>
<CAPTION>
APPROXIMATE
PORTFOLIO
PERCENTAGE
<S> <C>
-Airports/Ports/Highways 29%
-Hospital/Health Care 29
-Lease Rental 20
-Universities/Colleges 15
-General Obligation 7
</TABLE>

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 airport/port/highway bonds and
hospital/ health care 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.

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

DEFINING YOUR INCOME
AND ESTIMATING YOUR RETURN

<TABLE>
<S> <C>
WHAT YOU MAY EXPECT (Record Day: 10th day of each
month)
First distribution per 1,000 units (12/25/00): $4.50
Regular Monthly Income per 1,000 units
(beginning 1/25/01): $4.22
Annual Income per 1,000 units: $50.67
THESE FIGURES ARE ESTIMATES ON THE BUSINESS DAY BEFORE THE
INITIAL DATE OF DEPOSIT; ACTUAL PAYMENTS MAY VARY.
Estimated Current Return 5.04%
Estimated Long Term Return 5.14%
RETURNS WILL VARY (SEE PAGE 10).
</TABLE>

6
<PAGE>
--------------------------------------------------------------------------------

NEW JERSEY INSURED PORTFOLIO

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

Multistate Series--418

<TABLE>
<CAPTION>
RATING COST TO
PORTFOLIO TITLE COUPON MATURITY (1) OF ISSUES (2) FUND (3)
<C> <S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------
AIRPORTS/PORTS/HIGHWAYS (29%):
1. $590,000 Delaware River 5.00% 1/1/26 AAA $ 550,021.60
Port Auth., Port Dist.
Proj. Bonds, Ser. 1998 B
(MBIA Ins.)
2. $600,000 Port Auth. of NY 5.375 10/15/35 AAA 583,848.00
& NJ Consol. Bonds, 121st
Ser. (MBIA Ins.)
GENERAL OBLIGATION (7%):
3. $250,000 The Board of 5.85 8/1/27 AAA 256,255.00
Educ. of the Twp. of
Middletown, Monmouth
Cnty., NJ, Sch. Bonds
(MBIA Ins.)
4. $35,000 New Jersey Econ. 5.25 11/15/02 Aaa(m) 35,637.00
Dev. Auth., Mun. Loan
Pool Rev. Bonds, Ser.
2000 (FSA Ins.)(4)
5. $40,000 Warren Cnty. NJ, 4.75 11/15/01 Aaa(m) 40,257.20
GO Bonds, Open Space
Bonds, Ser. 2000 B (FGIC
Ins.)(4)
HOSPITALS/HEALTH CARE (29%):
6. $600,000 New Jersey Hlth. 5.20 1/1/28 AAA 570,672.00
Care Fac. Fin. Auth. Rev.
Bonds, Hackensack Univ.
Med. Ctr. Issue, Ser.
1998 B (MBIA Ins.)
7. $600,000 New Jersey Hlth. 5.375 7/1/31 AAA 584,568.00
Care Facs. Fin. Auth.
Rev. Bonds, Society of
the Valley Hosp., Ser.
2000 (AMBAC Ins.)
LEASE RENTAL (20%):
8. $560,000 Deptford Twp. 5.50 2/1/23 AAA 563,976.00
Mun. Util. Auth., Cnty.
of Gloucester, NJ, Rev.
Bonds, Ser. 2000 (AMBAC
Ins.)
9. $200,000 Hudson Cnty. 5.375 10/1/24 AAA 197,996.00
Imp. Auth., Fac. Lease
Rev. Rfdg. Bonds, Ser.
1998 (Hudson Cnty. Lease
Proj.) (FGIC Ins.)
UNIVERSITIES/COLLEGES (15%):
10. $600,000 New Jersey 5.375 7/1/25 AAA 593,886.00
Educl. Facs. Auth., Rev.
Bonds, Rowan Univ.
Issue., Ser. 2000 B (FGIC
Ins.)
--------------
$ 3,977,116.80
==============
</TABLE>

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

(1) Approximately 21% of the Portfolio is callable beginning in 2007; 34% is
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. An AAA rating
indicates highest quality bonds with a very strong capacity to pay interest
and repay principal.
(3) Approximately 22% of the bonds were deposited at a premium and 78% at a
discount from par. Sponsors' profit on deposit was $37,180.05.
(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 JERSEY INSURED PORTFOLIO (CONTINUED)

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.

<TABLE>
<S> <C>
INVESTOR FEES
Maximum Sales Fee (Load) on new
purchases (as a percentage of $1,000
invested) 2.90%
</TABLE>

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

ESTIMATED ANNUAL FUND OPERATING EXPENSES

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

EXAMPLE
This example may help you compare the cost of investing in the Fund to the
cost of investing in other funds.

<TABLE>
<S> <C> <C> <C>
1 Year 3 Years 5 Years 10 Years
$333 $382 $437 $596
</TABLE>

You will pay the following expenses if you do not sell your units:

<TABLE>
<S> <C> <C> <C>
1 Year 3 Years 5 Years 10 Years
$238 $382 $437 $596
</TABLE>

7. HOW HAVE SIMILAR FUNDS PERFORMED IN THE PAST?

IN THE FOLLOWING CHART WE SHOW PAST PERFORMANCE OF PRIOR NEW JERSEY
PORTFOLIOS, WHICH HAD INVESTMENT OBJECTIVES, STRATEGIES AND TYPES OF BONDS
SUBSTANTIALLY SIMILAR TO THIS FUND. THESE PRIOR SERIES DIFFERED IN THAT THEY
CHARGED A HIGHER SALES FEE. These prior New Jersey Series were offered after
1987 and were outstanding on September 30, 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 9/30/00.

<TABLE>
<CAPTION>
WITH SALES FEE NO SALES FEE
1 YEAR 5 YEARS 1 YEAR 5 YEARS
<S> <C> <C> <C> <C>
--------------------------------------------------------
High 5.94% 5.03% 7.71% 6.21%
Average 3.37 4.28 5.56 5.39
Low 2.03 2.57 3.85 3.36
--------------------------------------------------------
Average
Sales fee 2.14% 5.51%
--------------------------------------------------------
</TABLE>

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

7
<PAGE>
--------------------------------------------------------------------------------

NEW JERSEY INSURED PORTFOLIO (CONTINUED)

9. HOW DO I BUY UNITS?
The minimum investment is $250.

<TABLE>
<S> <C>
UNIT PRICE PER 1,000 UNITS $1,006.09
(as of November 7, 2000)
</TABLE>

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.

<TABLE>
<S> <C>
UNIT PAR VALUE $1.00
</TABLE>

11. HOW ARE DISTRIBUTIONS MADE AND TAXED?
The Fund pays income monthly.

In the opinion of bond counsel when each bond was issued, interest on the
bonds in this Fund is generally 100% exempt from regular federal income tax.
Your income may also be exempt from some New Jersey state and local personal
income taxes if you live in New Jersey.

12. WHAT OTHER SERVICES ARE AVAILABLE?

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

FOR FLORIDA RESIDENTS

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

<TABLE>
<CAPTION>
EFFECTIVE
TAXABLE INCOME 2000* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 3% 3.5% 4% 4.5% 5%
IS EQUIVALENT TO A TAXABLE YIELD OF
<S> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------
$ 0- 26,250 $ 0- 43,850 15.00 3.53 4.12 4.71 5.29 5.88
$ 26,251- 63,550 $ 43,851-105,950 28.00 4.17 4.86 5.56 6.25 6.94
$ 63,551-132,600 $105,951-161,450 31.00 4.35 5.07 5.80 6.52 7.25
$132,601-288,350 $161,451-288,350 36.00 4.69 5.47 6.25 7.03 7.81
OVER $288,350 OVER $288,350 39.60 4.97 5.79 6.62 7.45 8.28

TAXABLE INCOME 2 TAX-FREE YIELD OF
SINGLE RETURN 5.5% 6% 6.5% 7%
IS EQUIVALENT TO A TAXABLE YIELD OF
<S> <C> <C> <C> <C>
----------------
$ 0- 26,250 6.47 7.06 7.65 8.24
$ 26,251- 63,550 7.64 8.33 9.03 9.72
$ 63,551-132,600 7.97 8.70 9.42 10.14
$132,601-288,350 8.59 9.38 10.16 10.94
OVER $288,350 9.11 9.93 10.76 11.59
</TABLE>

FOR NEW JERSEY 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% 7% 7.5% 8%
IS EQUIVALENT TO A TAXABLE YIELD OF
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------
$ 0- 26,250 $ 0- 43,850 16.49 4.79 5.39 5.99 6.59 7.18 7.78 8.38 8.98 9.58
$ 26,251- 63,550 $ 43,851-105,950 31.98 5.88 6.62 7.35 8.09 8.82 9.56 10.29 11.03 11.76
$ 63,551-132,600 $105,951-161,450 35.40 6.19 6.97 7.74 8.51 9.29 10.06 10.84 11.61 12.38
$132,601-288,350 $161,451-288,350 40.08 6.68 7.51 8.34 9.18 10.01 10.85 11.68 12.52 13.35
OVER $288,350 OVER $288,350 43.45 7.07 7.96 8.84 9.73 10.61 11.49 12.38 13.26 14.15
</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 income tax rates and assumes that all income would
otherwise be taxed at the investor's highest tax rate. Yield figures are for
example only.

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

regard.

9
<PAGE>
WHAT YOU CAN EXPECT FROM YOUR INVESTMENT

REGULAR MONTHLY INCOME

The Fund will pay you regular monthly income. 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 monthly statement of income payments;
- 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 Florida Portfolio's concentration in
municipal water and sewer revenue bonds. The payment of interest and principal
of these bonds depends on the rates the utilities may charge, the demand for
their services and the cost of operating their business which includes the
expense of complying with environmental and other energy and licensing laws and
regulations. The operating results of utilities are particularly influenced by:

- increases in operating and construction costs; and

- unpredicability of future usage requirements.

11
<PAGE>

Here is what you should know about the Florida Portfolio's concentration in
special tax bonds. Special tax bonds are payable from and secured by the
revenues a municipality derives from a particular tax; for example, a tax on
hotel rentals, on the purchase of food and beverages, car rentals, or liquor
consumption. These bonds are not secured by general tax revenues. Payment on
these bonds may be adversely affected by:

- a reduction in revenues resulting from a decline in the local economy or
population; or

- a decline in the consumption, use or cost of the goods and services that are
subject to taxation.

Here is what you should know about the New Jersey Portfolio's concentration in
airport/port/highway bonds. These bonds are dependent for payment on revenues
from financial projects including:

- user fees from ports and airports;
- tolls on turnpikes and bridges;
- rents from buildings; and
- additional financial resources including

-- federal and state subsidies,
-- lease rentals paid by state or local governments, or
-- the pledge of a special tax such as a sales tax or a property tax.

Airport income is largely affected by:

- increased competition;
- excess capacity; and
- increased fuel costs.

Here is what you should know about the New Jersey 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.

12
<PAGE>
STATE CONCENTRATION RISKS

FLORIDA RISKS

GENERALLY

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

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

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

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

STATE AND LOCAL GOVERNMENT

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

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

NEW JERSEY RISKS

STATE AND LOCAL GOVERNMENT

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

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

- the state is required by law to maintain a balanced budget, and state
spending for any given municipality or county may be limited, which could
make it harder for any particular county or municipality to repay its debts.

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

- elementary and secondary education,

- grants-in-aid, involving the provision of benefits or services to
individuals, and

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

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

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

13
<PAGE>
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.

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.

14
<PAGE>
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. In addition, you may exchange into this Fund from certain other
Defined Asset Funds and unit trusts. 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

16
<PAGE>
- 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 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

17
<PAGE>
earlier with the consent of investors holding 51% of the units or if total
assets of the Fund have fallen below 40% of the face amount of bonds deposited.
We will decide whether to terminate the Fund early based on the same factors
used in deciding whether or not to offer units in the secondary market.

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

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

18
<PAGE>
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.

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 73.12%

SALOMON SMITH BARNEY INC. (an indirectly wholly-owned subsidiary of Citigroup
Inc.)
388 Greenwich Street--23rd Floor,
New York, NY 10013 8.13%

DEAN WITTER REYNOLDS INC. (a principal operating subsidiary of Morgan Stanley
Dean Witter & Co.)
Two World Trade Center--59th Floor,
New York, NY 10048 6.25%

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 Chase Manhattan Bank, Unit Investment Trust Department, 4 New York
Plaza--6th Floor, New York, New York 10004, is the Trustee. It is supervised by
the Federal Deposit Insurance Corporation, the Board of Governors of the Federal
Reserve System and New York State banking authorities.

19
<PAGE>
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.
Approximately 15% of the bonds in the New Jersey Portfolio were purchased from
one or more 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 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 Fund and the Agent for the Sponsors have each adopted a code of ethics
requiring reporting of personal securities transactions by its employees with
access to information on Fund transactions. Subject to certain conditions, the
codes permit employees to invest in Fund securities for their own accounts. The
codes are designed to prevent fraud, deception and misconduct against the Fund
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 a Portfolio. We
cannot predict whether any impact will be material to the Fund as a whole.

20
<PAGE>
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.

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.

21
<PAGE>
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.

FLORIDA TAXES

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

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

Florida also imposes a tax on intangible personal property, such as stocks,
bonds, notes and units in trusts. The tax is imposed on Florida taxpayers as of
January 1st of each year. Florida exempts certain types of bonds and debt
obligations from this tax. Your units will be exempt from the intangible
personal property tax as long as at least 90% of the Florida Trust is invested
exclusively in bonds and other debt obligations that are tax-exempt for Florida
purposes.

NEW JERSEY TAXES

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

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

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.

22
<PAGE>
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.

23
<PAGE>
REPORT OF INDEPENDENT AUDITORS

The Sponsors, Trustee and Holders of Municipal Investment Trust Fund, Multistate
Series--418, Defined Asset Funds (Florida Insured Portfolio and New Jersey
Insured Portfolio) (the "Fund"):

We have audited the accompanying statements of condition and the related
portfolios of Florida Insured Portfolio and New Jersey Insured Portfolio (the
"Portfolios") included in the prospectus of the Fund as of November 8, 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 auditing standards generally accepted
in the United States of America. 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 positions of the Portfolios of the Fund as
of November 8, 2000 in conformity with accounting principles generally accepted
in the United States of America.

DELOITTE & TOUCHE LLP
NEW YORK, NY
NOVEMBER 8, 2000

STATEMENTS OF CONDITION AS OF NOVEMBER 8, 2000

<TABLE>
<CAPTION>
FLORIDA INSURED NEW JERSEY INSURED
PORTFOLIO PORTFOLIO
--------------- ------------------
<S> <C> <C>
TRUST PROPERTY
Investments--Bonds and Contracts to
purchase Bonds(1)..................... $ 3,939,090.85 $ 3,977,116.80
Cash.................................... 44,072.00 44,072.00
Accrued interest to initial date of
deposit on underlying Bonds........... 34,180.95 37,060.08
-------------- --------------
Total............................... $ 4,017,343.80 $ 4,058,248.88
============== ==============
LIABILITIES AND INTEREST OF HOLDERS
Liabilities:
Advance by Trustee for accrued
interest(2)....................... $ 34,180.95 $ 37,060.08
Reimbursement of Sponsors for
organization expenses(3).......... 8,072.00 8,072.00
-------------- --------------
Subtotal............................ 42,252.95 45,132.08
-------------- --------------
Interest of Holders of units of
fractional undivided
interest outstanding
(Florida Insured Portfolio--4,036,000;
New Jersey Insured Portfolio--4,036,000)
Cost to investors(3)(4)(5).......... 4,058,192.09 4,096,581.28
Organization expenses(3) and gross
underwriting commissions(4)....... (83,101.24) (83,464.48)
-------------- --------------
Subtotal............................ 3,975,090.85 4,013,116.80
-------------- --------------
Total............................... $ 4,017,343.80 $ 4,058,248.88
============== ==============
</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 $7,899,533.13 deposited with the Trustee. The amount of the letter of credit
includes $7,828,503.25 for the purchase of $8,150,000 face amount of the bonds,
plus $71,029.88 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.

24
<PAGE>

Defined
Asset Funds-Registered Trademark-

<TABLE>
<S> <C>
HAVE QUESTIONS ? MUNICIPAL INVESTMENT TRUST FUND
Request the most MULTISTATE SERIES--418
recent free Information (A Unit Investment Trust)
Supplement that gives more ---------------------------------------
details about the Fund, This Prospectus does not contain
by calling: complete information about the
The Chase Manhattan Bank investment company filed with the
1-800-323-1508 Securities and Exchange Commission in
Washington, D.C. under the:
- Securities Act of 1933 (file no.
333-47664) 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.
100836RR--11/00
</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 Chase Manhattan Bank, Trustee........................... 13-4994650
</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>
<S> <C>
SEC
SERIES NUMBER FILE NUMBER
------------------------------------------------------------ --------------------
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).
1.1.1 -- Form of Standard Terms and Conditions of Trust Effective October 21,
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).
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).
-- Merrill Lynch Code of Ethics (incorporated by reference to Exhibit
1.11.1 1.11.1 to 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 Post-Effective Amendment No. 8 to the
Registration Statement of Municipal Investment Trust Fund, Insured
Series 186, 1933 Act File No. 33-49159).
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 8TH DAY OF
NOVEMBER, 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.

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, 333-89009 and
333-39302.
</TABLE>

BRUCE F. ALONSO
RICHARD M. DeMARTINI
RAYMOND J. DROP
JAMES F. HIGGINS
DONALD G. KEMPF, JR.
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