<PAGE> PAGE 1
000 A000000 06/30/1999
000 C000000 0000354185
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 A
001 A000000 SECURITY MUNICIPAL BOND FUND
001 B000000 811-3225
001 C000000 7854313127
002 A000000 700 HARRISON STREET
002 B000000 TOPEKA
002 C000000 KS
002 D010000 66636
002 D020000 0001
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 SECURITY MANAGEMENT COMPANY, LLC
008 B000001 A
008 C000001 801-8008
008 D010001 TOPEKA
008 D020001 KS
008 D030001 66636
008 D040001 0001
008 A000002 SALOMON BROTHERS ASSET MANAGEMENT INC
008 B000002 S
008 C000002 801-32046
008 D010002 NEW YORK
008 D020002 NY
008 D030002 10048
010 A000001 SECURITY MANAGEMENT COMPANY, LLC
010 B000001 84-01497
010 C010001 TOPEKA
010 C020001 KS
010 C030001 66636
<PAGE> PAGE 2
010 C040001 0001
011 A000001 SECURITY DISTRIBUTORS, INC.
011 B000001 8-10781
011 C010001 TOPEKA
011 C020001 KS
011 C030001 66636
011 C040001 0001
012 A000001 SECURITY MANAGEMENT COMPANY, LLC
012 B000001 84-01497
012 C010001 TOPEKA
012 C020001 KS
012 C030001 66636
012 C040001 0001
013 A000001 ERNST & YOUNG LLP
013 B010001 KANSAS CITY
013 B020001 MO
013 B030001 64105
013 B040001 2100
015 A000001 UMB BANK, N.A.
015 B000001 C
015 C010001 KANSAS CITY
015 C020001 MO
015 C030001 64106
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 35
019 C000000 SECURITYFU
020 A000001 NONE
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 FIRST UNION BROKERAGE SERVICES, INC
022 B000001 56-1252143
022 C000001 3984
022 D000001 4048
022 A000002 MORGAN STANLEY DEAN WITTER
022 B000002 13-2655998
022 C000002 2550
022 D000002 2550
022 A000003 GREENWICH PARTNERS, INC.
022 B000003 13-3176013
022 C000003 1632
<PAGE> PAGE 3
022 D000003 1383
022 A000004 BAUM (GEORGE K.) & COMPANY
022 B000004 43-1661917
022 C000004 0
022 D000004 991
022 A000005 BRANFORD, SIEBERT
022 B000005 13-2639174
022 C000005 927
022 D000005 0
022 A000006 GOLDMAN SACHS AND COMPANY
022 B000006 13-5108880
022 C000006 0
022 D000006 795
022 A000007 BEAR STEARNS
022 B000007 13-3604093
022 C000007 788
022 D000007 0
022 A000008 EVEREN
022 B000008 39-1939036
022 C000008 0
022 D000008 766
022 A000009 MERRILL LYNCH, PIERCE, FENNER & SMITH
022 B000009 36-4674085
022 C000009 586
022 D000009 0
022 A000010 PRUDENTIAL SECURITIES, INC.
022 B000010 22-2347336
022 C000010 0
022 D000010 524
023 C000000 10988
023 D000000 11057
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 Y
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 375
<PAGE> PAGE 4
028 A020000 45
028 A030000 0
028 A040000 359
028 B010000 9
028 B020000 42
028 B030000 0
028 B040000 106
028 C010000 640
028 C020000 42
028 C030000 0
028 C040000 179
028 D010000 42
028 D020000 43
028 D030000 0
028 D040000 321
028 E010000 30
028 E020000 43
028 E030000 0
028 E040000 331
028 F010000 117
028 F020000 44
028 F030000 0
028 F040000 262
028 G010000 1213
028 G020000 260
028 G030000 0
028 G040000 1558
028 H000000 364
029 000000 Y
030 A000000 6
030 B000000 4.75
030 C000000 0.00
031 A000000 1
031 B000000 0
032 000000 5
033 000000 0
034 000000 Y
035 000000 1
036 A000000 N
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 100
042 E000000 0
042 F000000 0
<PAGE> PAGE 5
042 G000000 0
042 H000000 0
043 000000 32
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.500
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
<PAGE> PAGE 6
054 O000000 Y
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 100
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 1.8
062 M000000 0.0
062 N000000 0.0
062 O000000 98.2
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 12.6
064 A000000 Y
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
<PAGE> PAGE 7
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 Y
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 10988
071 B000000 11057
071 C000000 20348
071 D000000 109
072 A000000 6
072 B000000 514
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 50
072 G000000 9
072 H000000 0
072 I000000 6
072 J000000 0
072 K000000 0
072 L000000 1
072 M000000 6
072 N000000 12
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 3
072 S000000 0
072 T000000 31
072 U000000 0
072 V000000 0
072 W000000 1
072 X000000 119
072 Y000000 12
<PAGE> PAGE 8
072 Z000000 407
072AA000000 8
072BB000000 0
072CC010000 525
072CC020000 0
072DD010000 373
072DD020000 28
072EE000000 0
073 A010000 0.2000
073 A020000 0.1700
073 B000000 0.0000
073 C000000 0.0000
074 A000000 49
074 B000000 0
074 C000000 0
074 D000000 19106
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 310
074 M000000 0
074 N000000 19465
074 O000000 0
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 28
074 S000000 0
074 T000000 19437
074 U010000 1799
074 U020000 182
074 V010000 9.81
074 V020000 9.83
074 W000000 0.0000
074 X000000 629
074 Y000000 0
075 A000000 0
075 B000000 20348
076 000000 0.00
077 A000000 Y
077 D000000 Y
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
<PAGE> PAGE 9
080 A000000 NATIONAL UNION FIRE INSURANCE COMPANY
080 C000000 6875
081 A000000 Y
081 B000000 33
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE AMY J. LEE
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000354185
<NAME> SECURITY MUNICIPAL BOND FUND
<SERIES>
<NUMBER> 001
<NAME> CLASS A
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<EXCHANGE-RATE> 1.000
<INVESTMENTS-AT-COST> 18802
<INVESTMENTS-AT-VALUE> 19106
<RECEIVABLES> 297
<ASSETS-OTHER> 49
<OTHER-ITEMS-ASSETS> 13
<TOTAL-ASSETS> 19465
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 29
<TOTAL-LIABILITIES> 29
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 20093
<SHARES-COMMON-STOCK> 1799
<SHARES-COMMON-PRIOR> 1856
<ACCUMULATED-NII-CURRENT> 6
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (967)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 304
<NET-ASSETS> 19436
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 514
<OTHER-INCOME> 0
<EXPENSES-NET> 108
<NET-INVESTMENT-INCOME> 406
<REALIZED-GAINS-CURRENT> 8
<APPREC-INCREASE-CURRENT> (872)
<NET-CHANGE-FROM-OPS> (458)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 373
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 69
<NUMBER-OF-SHARES-REDEEMED> 150
<SHARES-REINVESTED> 24
<NET-CHANGE-IN-ASSETS> (1361)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (975)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 50
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 121
<AVERAGE-NET-ASSETS> 20348
<PER-SHARE-NAV-BEGIN> 10.24
<PER-SHARE-NII> .21
<PER-SHARE-GAIN-APPREC> (.44)
<PER-SHARE-DIVIDEND> .20
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.81
<EXPENSE-RATIO> 1.02
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000354185
<NAME> SECURITY MUNICIPAL BOND FUND
<SERIES>
<NUMBER> 002
<NAME> CLASS B
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<EXCHANGE-RATE> 1.000
<INVESTMENTS-AT-COST> 18802
<INVESTMENTS-AT-VALUE> 19106
<RECEIVABLES> 297
<ASSETS-OTHER> 49
<OTHER-ITEMS-ASSETS> 13
<TOTAL-ASSETS> 19465
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 29
<TOTAL-LIABILITIES> 29
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 20093
<SHARES-COMMON-STOCK> 182
<SHARES-COMMON-PRIOR> 133
<ACCUMULATED-NII-CURRENT> 6
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (967)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 304
<NET-ASSETS> 19436
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 514
<OTHER-INCOME> 0
<EXPENSES-NET> 108
<NET-INVESTMENT-INCOME> 406
<REALIZED-GAINS-CURRENT> 8
<APPREC-INCREASE-CURRENT> (872)
<NET-CHANGE-FROM-OPS> (458)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 27
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 50
<NUMBER-OF-SHARES-REDEEMED> 3
<SHARES-REINVESTED> 2
<NET-CHANGE-IN-ASSETS> 418
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (975)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 50
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 121
<AVERAGE-NET-ASSETS> 20348
<PER-SHARE-NAV-BEGIN> 10.26
<PER-SHARE-NII> .17
<PER-SHARE-GAIN-APPREC> (.43)
<PER-SHARE-DIVIDEND> .17
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.83
<EXPENSE-RATIO> 1.78
</TABLE>
<PAGE>
SECURITY MUNICIPAL BOND FUND
FILE NO. 811-3225
CIK NO. 0000354185
EXHIBIT 77D: Policies with respect to security investments
WHEREAS, certain states formerly imposed restrictions on the investments
which could be made by registered investment companies, which restrictions
were not required by the Investment Company Act of 1940 (the "1940 Act");
WHEREAS, the National Securities Market Improvement Act of 1996 pre-empted
the states' ability to impose investment restrictions on investment companies
registered under the 1940 Act; and
WHEREAS, the Board of Directors of Security Equity Fund, Security Growth and
Income Fund, Security Ultra Fund, SBL Fund, Security Income Fund, Security
Municipal Bond Fund and Security Cash Fund has determined that it is in the
best interests of the Security Funds and their respective shareholders to
remove the state law investment limitations from their respective
registration statements;
NOW THEREFORE, BE IT RESOLVED, that the appropriate officers of the Security
Funds are authorized and directed to remove the following investment
limitations from the registration statements of the Security Fund:
The investment limitation that (i) a Fund limit the aggregate market value of
all securities or currencies covering call or put options to 25% of the
market value of the Fund's net assets, (ii) a Fund will not write a covered
put option if as a result, the aggregate market value of all portfolio
securities or currencies covering put or call options exceeds 25% of the
market value of the Fund's net assets, and (iii) a Fund not commit more than
5% of its assets to premiums when purchasing call and put options.
