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SIGNATURE JULIAN SLUYTERS
TITLE TREASURER
For period ending June 30, 1996 /Attachment 77C
File Number 811-3504
RMA Tax-Free Fund
Special Meeting held May 1, 1996
To vote for or against the following changes
to the Fund's fundamental investment
restrictions and policies: Shares Voted Shares Voted Shares
For Against Abstain
Modification of fundamental restriction
on portfolio diversification for
diversified funds: 994,034,112 24,991,124 142,526,913
Modification of fundamental
restriction on concentration: 994,023,646 25,001,590 142,526,913
Modification of fundamental
restriction on senior
securities and borrowing: 991,509,208 27,516,028 142,526,913
Modification of fundamental
restriction on making loans: 993,769,323 25,255,914 142,526,912
Modification of fundamental restriction
on underwriting securities: 993,975,992 25,049,244 142,526,913
Modification of fundamental restriction
on real estate investments: 993,796,856 25,228,380 142,526,913
Modification of fundamental restriction
on investing in commodities: 991,020,912 28,004,324 142,526,913
Elimination of fundamental restriction
on pledging portfolio securities: 991,775,551 27,249,685 142,526,913
Elimination of fundamental restriction
on margin transactions: 991,413,423 27,611,813 142,526,913
Elimination of fundamental
restriction on short sales: 991,535,016 27,490,221 142,526,912
Elimination of fundamental restriction
on investments in oil, gas and
mineral leases and programs: 993,921,069 25,104,167 142,526,913
Elimination of fundamental
restriction on investments in
other investment companies: 992,063,356 26,961,880 142,526,913
To vote for or against the approval
of Amended and Restated
Articles of Incorporation: 981,728,521 27,324,556 152,499,072
(Broker non-votes and abstentions are included within the
"Shares Abstain" totals.)
In addition to the items noted above, the Fund's shareholders (i)
elected board members and (ii) ratified the selection of independent
auditors. Pursuant to Instruction 2 of Sub-Item 77C of Form N-SAR, it
is not necessary to provide in this exhibit details concerning shareholder
action on these two proposals since there were no solicitations in opposition
to the registrant's nominees and all of the nominees were elected.
A more complete description of each of the proposals referred to above
is hereby incorporated by referenced to the Fund's proxy materials relating
to the Special Meeting of Shareholders dated February 28, 1996. These
Schedule 14A materials were filed with the Securities and Exchange Commission
via EDGAR on February 28, 1996; the accession code number
was 0000889812-96-000186.
Board of Directors
PaineWebber RMA Tax-Free Fund, Inc.
In planning and performing our audit of the financial statements of
PaineWebber RMA Tax-Free Fund, Inc. for the year ended June 30, 1996,
we considered its internal control structure, including procedures for
safeguarding securities, in order to determine our auditing procedures
for the purpose of expressing our opinion on the financial statements and
to comply with the requirements of Form N-SAR, not to provide assurance on
the internal control structure.
The management of PaineWebber RMA Tax-Free Fund, Inc. is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess
the expected benefits and related costs of internal control structure policies
and procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce
to a relatively low level the risk that errors or irregularities in amounts
that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. However, we noted no
matters involving the internal control structure, including procedures for
safeguarding securities, that we consider to be material weaknesses as defined
above as of June 30, 1996.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission.
ERNST & YOUNG LLP
August 12, 1996
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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