LIQUID CASH TRUST
Supplement to Prospectus dated May 31, 1998
At a meeting to be held on March 29, 1999, shareholders of the Trust will
be asked to vote on the changes described below. If approved by shareholders,
these changes will take effect as of April 1, 1999, except Proposal 7, which
will occur on or after April 23, 1999. Shareholders will be notified if any of
these changes are not approved.
Please keep this supplement for your records.
Shareholders will be asked to consider the following proposals:
1. To elect nine Trustees.
2. To ratify the selection of the Trust's independent auditors.
3. To make changes to the Trust's fundamental investment policies:
(a) To make non-fundamental, and to amend, the Trust's fundamental
investment policy regarding maturity of money market instruments;
(b) To make non-fundamental, and to amend, the Trust's fundamental
investment policy regarding restricted securities;
(c) To make non-fundamental the Trust's fundamental investment policy
prohibiting investment in securities to exercise control of an issuer;
(d) To make non-fundamental, and to amend, the Trust's ability to invest
in the securities of other investment companies; and
(e) To amend the Trust's fundamental investment policy regarding borrowing
to permit the purchase of securities while borrowings are outstanding.
4. To eliminate certain of the Trust's fundamental investment policies:
(a) To remove the Trust's fundamental investment policy on investing in
new issuers;
(b) To remove the Trust's fundamental investment policy on investing in
oil, gas, and minerals;
(c) To remove the Trust's fundamental investment policy on investing in
issuers whose securities are owned by Officers and Trustees;
(d) To remove the Trust's fundamental investment policy on investing in
options;
(e) To remove the Trust's fundamental investment policy regarding
short-term liquidity requirements; and
(f) To remove the Trust's fundamental investment policy regarding
concentration and to reserve freedom to concentrate investments in the
banking industry.
5. To approve a clarifying amendment to the Trust's Investment Advisory
Agreement to exclude Rule 12b-1 fees and shareholder service fees from the
expense cap.
6. To approve an amendment and restatement to the Trust's Declaration of Trust
to require the approval of a "1940 Act" majority of the outstanding voting
shares in the event of the sale and conveyance of the assets of the Trust
to another trust or corporation.
7. To approve a proposed Agreement and Plan of Reorganization between the
Trust and Money Market Obligations Trust, on behalf of its series, Liquid
Cash Trust (the "New Fund"), whereby the New Fund would acquire all of the
assets of the Trust in exchange for shares of the New Fund to be
distributed PRO RATA by the Trust to its shareholders in complete
liquidation and termination of the Trust.
January 21, 1999
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Federated Investors
Federated Securities Corp., Distributor
Federated Investors, Inc.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
www.federatedinvestors.com
Cusip 536319106
G02541-02 (1/99)
