DEFINED ASSET FUNDS-REGISTERED TRADEMARK-
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MUNICIPAL INVESTMENT TRUST FUND
PENNSYLVANIA SERIES--A
(A UNIT INVESTMENT TRUST)
- PENNSYLVANIA PORTFOLIO
- SHORT-INTERMEDIATE-TERM MUNICIPAL BONDS
- DESIGNED TO BE FREE OF REGULAR FEDERAL INCOME TAX
- EXEMPT FROM SOME STATE AND LOCAL TAXES
- MONTHLY DISTRIBUTIONS
SPONSORS:
MERRILL LYNCH,
PIERCE, FENNER & SMITH -----------------------------------------------------
INCORPORATED The Securities and Exchange Commission has not
SALOMON SMITH BARNEY INC. approved or disapproved these Securities or passed
PRUDENTIAL SECURITIES upon the adequacy of this prospectus. Any
INCORPORATED representation to the contrary is a criminal offense.
DEAN WITTER REYNOLDS INC. Prospectus dated December 15, 2000.
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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:
- A disciplined strategy of buying and holding with a long-term view is the
cornerstone of Defined Asset Funds.
- 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.
THE FINANCIAL INFORMATION IN THIS PROSPECTUS IS AS OF THE EVALUATION DATE,
AUGUST 31, 2000.
CONTENTS
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Pennsylvania Portfolio--
Risk/Return Summary............................. 3
What You Can Expect From Your Investment.......... 6
Monthly Income.................................. 6
Return Figures.................................. 6
Records and Reports............................. 6
The Risks You Face................................ 7
Interest Rate Risk.............................. 7
Call Risk....................................... 7
Expense Risk.................................... 7
Collateral Related Risk......................... 7
Liquidity Risk.................................. 7
Concentration Risk.............................. 7
State Concentration Risk........................ 8
Litigation and Legislation Risks................ 8
Selling or Exchanging Units....................... 9
Sponsors' Secondary Market...................... 9
Selling Units to the Trustee.................... 9
Exchange Option................................. 10
How The Fund Works................................ 10
Pricing......................................... 10
Evaluations..................................... 10
Income.......................................... 10
Servicing Fee................................... 10
Expenses........................................ 11
Portfolio Changes............................... 11
Fund Termination................................ 12
Certificates.................................... 12
Trust Indenture................................. 12
Legal Opinion................................... 13
Auditors........................................ 13
Sponsors........................................ 13
Trustee......................................... 13
Underwriters' and Sponsors' Profits............. 14
Public Distribution............................. 14
Code of Ethics.................................. 14
Taxes............................................. 14
Supplemental Information.......................... 16
Financial Statements.............................. D-1
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PENNSYLVANIA PORTFOLIO--RISK/RETURN SUMMARY
1. WHAT ARE THE FUND'S OBJECTIVES?
- 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 of a single issue of short-intermediate term municipal industrial
development mortgage revenue bonds with an estimated life of about 3 years.
- The Fund seeks to reduce fluctuations in the value of the bonds (and minimize
the risk of losing money) through the repurchase commitments described below.
2. WHAT ARE MUNICIPAL REVENUE BONDS?
- Municipal industrial development mortgage revenue bonds are bonds issued by
states, municipalities and public authorities to finance the cost of buying,
building or improving various projects including office buildings, shopping
centers and industrial facilties. Generally, payments on these bonds depend
solely on the creditworthiness of the operator, lessee or guarantor of the
project, 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 1 short-intermediate-term tax-exempt
municipal bond with an aggregate face amount of $2,188,646. The Fund is a
unit investment trust which means that, unlike a mutual fund, the Portfolio
is not managed.
- The bonds were initially acquired from Dollar Bank of Pittsburgh (the
Seller), which had held the bonds in its own portfolio.
- 100% of the Portfolio consists of collateralized industrial development
revenue bonds.
- The Seller has agreed to repurchase the bonds if:
-- the Fund needs to sell bonds to meet redemptions of units;
-- the issuer of the bond fails to make payments when due;
-- the interest on the bond becomes taxable; and
-- if insolvency proceedings are commenced by or against Dollar Bank of
Pittsburgh, or it fails to meet its collateral requirements.
- The collateral securing the Seller's repurchase commitments may include:
-- Ginnie Maes, Fannie Maes and Freddie Macs;
-- mortgages;
-- municipal obligations;
-- corporate obligations;
-- U.S. government securities; and
-- cash.
- You should rely on the collateral for the performance of the repurchase
commitments rather than on the financial position of the Seller.
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, the issuer's worsening financial condition or the
Seller's failure to meet its repurchase commitments can reduce the price of
your units.
- Because the Fund is concentrated in industrial development revenue bonds,
adverse developments in this sector could affect the value of your Units.
- Assuming no changes in interest rates, when you sell your units, they will
generally be worth less than your cost because your cost included a sales
fee.
- The Fund could receive early returns of principal if underlying mortgages are
prepaid, if it becomes necessary to liquidate the collateral or 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.
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- 100% of the bonds are currently callable.
- The Portfolio is concentrated in bonds of a single Pennsylvania issuer so it
is not diversified and is subject to risks particular to Pennsylvania, which
are briefly described on page 8.
- Also, the Fund is concentrated in a single bond issue that is backed by a
single Seller's repurchase commitments. A portfolio of bonds secured by a
single Seller's repurchase commitments is less diversified than a portfolio
backed by repurchase commitments of several sellers, particularly because the
Seller is located in the same State as the bond issuer.
5. IS THIS FUND APPROPRIATE FOR YOU?
Yes, if you want federally tax-free income. You will benefit from a
professionally selected and supervised portfolio whose risk is reduced by
investing in a bond backed by collateralized repurchase commitments.
The Fund is NOT appropriate for you if you need a diversified Unit Trust, 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.
DEFINING YOUR INCOME
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WHAT YOU MAY EXPECT (Payable on the 25th day of
the month to holders of record on the 10th day of
the month):
Regular Monthly Income per unit $0.91
Annual Income per unit: $10.99
THESE FIGURES ARE ESTIMATES DETERMINED ON THE EVALUATION
DAY; ACTUAL PAYMENTS MAY VARY.
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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.
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INVESTOR FEES
Maximum Sales Fee (Load) on new purchases (as a
percentage of $1,000 invested) 1.00%
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ESTIMATED ANNUAL FUND OPERATING EXPENSES
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AMOUNT
PER UNIT
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Trustee's Fee $0.11
Portfolio Supervision,
Bookkeeping and
Administrative Fees
(including updating
expenses) $0.25
Evaluator's Fee $0.26
Other Operating Expenses $0.55
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TOTAL $1.17
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The Sponsors historically paid updating expenses.
7. 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.
8. HOW DO I BUY UNITS?
The minimum investment is one unit.
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.
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UNIT PRICE PER UNIT $157.70
(as of August 31, 2000)
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Unit price is based on the net asset value of the Fund plus the 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. 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 bond in the Fund.
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9. 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. You will
not pay any other fee when you sell your units.
10. 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 Pennsylvania state and local
personal income taxes if you live in Pennsylvania.
You will also receive principal payments if bonds are sold or called or
mature, when the cash available is more than $5.00 per unit. You will be
subject to tax on any gain realized by the Fund on the disposition of bonds.
11. WHAT OTHER SERVICES ARE AVAILABLE?
REINVESTMENT
You will receive your income in cash unless you choose to compound your
income by reinvesting at no sales fee in the Municipal Fund Investment
Accumulation Program, Inc. This Program is an open-end mutual fund with a
comparable investment objective. Income from this Program will generally be
subject to state and local income taxes. FOR MORE COMPLETE INFORMATION ABOUT
THE PROGRAM, INCLUDING CHARGES AND FEES, ASK THE TRUSTEE FOR THE PROGRAM'S
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST. THE TRUSTEE MUST RECEIVE
YOUR WRITTEN ELECTION TO REINVEST AT LEAST 10 DAYS BEFORE THE RECORD DAY OF
AN INCOME PAYMENT.
EXCHANGE PRIVILEGES
You may exchange units of this Fund for units of certain other Defined Asset
Funds. You may also exchange into this Fund from certain other funds. We
charge a reduced sales fee on most exchanges.
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TAX-FREE VS. TAXABLE INCOME: A COMPARISON OF TAXABLE AND TAX-FREE YIELDS
FOR PENNSYLVANIA RESIDENTS
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COMBINED
EFFECTIVE
TAXABLE INCOME 2000* TAX RATE TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN % 3% 3.5% 4% 4.5% 5% 5.5% 6% 6.5% 7% 7.5% 8%
IS EQUIVALENT TO A TAXABLE YIELD OF
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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$ 0- 26,250 $ 0- 43,850 17.38 3.63 4.24 4.84 5.45 6.05 6.66 7.26 7.87 8.47 9.08 9.68
$ 26,251- 63,550 $ 43,851-109,950 30.02 4.29 5.00 5.72 6.43 7.14 7.86 8.57 9.29 10.00 10.72 11.43
$ 63,551-132,600 $105,951-161,450 32.93 4.47 5.22 5.96 6.71 7.46 8.20 8.95 9.69 10.44 11.18 11.93
$132,601-288,350 $161,451-288,350 37.79 4.82 5.63 6.43 7.23 8.04 8.84 9.65 10.45 11.25 12.06 12.86
OVER $288,350 OVER $288,350 41.29 5.11 5.96 6.81 7.66 8.52 9.37 10.22 11.07 11.92 12.77 13.63
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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 1999
federal and applicable State and local 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.
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WHAT YOU CAN EXPECT FROM YOUR INVESTMENT
MONTHLY INCOME
The Fund will pay you regular monthly income. Your monthly income may vary
because of:
- elimination of part of the bond issue from the Fund's portfolio because of
calls, redemptions or sales;
- a change in the Fund's expenses; or
- the failure by the 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):
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Estimated Annual Estimated
Interest Income - Annual Expenses
------------------------------------
Unit Price
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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 and any principal 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.
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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
The bond in this Fund is currently callable by the issuer.
If the bond is called, 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.
EXPENSE RISK
The Fund contains only one bond issue. If many investors sell units, the Fund
will have to sell some of the bond issue. This could 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.
COLLATERAL RELATED RISK
The Sponsors believe that the collateral is reasonably adequate to support the
repurchase commitments without regard to the ability of the Seller to meet these
commitments.
You could have all or part of the principal amount of your investment returned
early if insolvency proceedings are commenced by or against the Seller. In that
case, the collateral agent will automatically foreclose on the collateral and,
if necessary, liquidate it and use the proceeds to purchase bonds from the Fund.
You would then receive your share of the proceeds.
The Sponsors have agreed that their sole recourse in the event the Seller fails
to repurchase the bonds as agreed, including as a result of the Seller's
insolvency, will be to exercise available remedies with respect to the
collateral on deposit with the Fund. If the collateral is not enough to cover
the costs resulting from the Seller's default, the Sponsors will be unable to
pursue any deficiency judgment against the Seller.
CONCENTRATION RISK
When a certain type of bond makes up 25% or more of the 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 Portfolio's concentration in industrial
development revenue bonds (IDRs). IDRs are issued to finance various privately
operated projects such as pollution control
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and manufacturing facilities. Payment for these bonds depends on:
- creditworthiness of the corporate operator of the project being financed;
- economic factors relating to the particular industry; and,
- in some cases, creditworthiness of an affiliated or third-party guarantor.
Changes to the portfolio from bond redemptions, maturities and sales may affect
the Fund's concentrations over time.
STATE CONCENTRATION RISK
PENNSYLVANIA RISKS
GENERALLY
Pennsylvania and many of its municipalities (including Philadelphia) have
undergone an economic decline:
- coal, steel, railroads and other heavy industry historically associated with
the Commonwealth has given way to increased competition from foreign
producers.
- agriculture and related industries are still an important part of the
Commonwealth's economy.
- recently, however, service sector industries (trade, medical and health
services, education and financial services) have provided new sources of
growth.
STATE AND LOCAL GOVERNMENTS
Historically, both the Commonwealth and the City of Philadelphia have
experienced serious revenue shortfalls. At the same time, rising demands for
state and local programs and services (particularly medical assistance and cash
assistance programs) have led to increased spending.
- in recent years, both the Commonwealth and the City of Philadelphia have
tried to balance their budgets with a mix of tax increases and spending
cuts.
- Philadelphia has considered significant service cuts and privatization of
certain services which it has provided to date.
- In 1991, the Commonwealth created the Pennsylvania Inter-Governmental
Cooperation Authority ('PICA') which it authorized to issue debt to cover
Philadelphia's budget shortfalls, eliminate the City's projected deficits
and fund its capital spending. PICA issued approximately $1.76 billion of
Special Revenue Bonds on Philadelphia's behalf. Its power to issue bonds on
Philadelphia's behalf expired at the end of 1996; as of June 30, 1999,
approximately $1.0 billion in PICA Special Revenue Bonds were outstanding.
- Pennsylvania's general obligation bonds are currently rated Aa3 by Moody's
and AA- by Standard & Poor's. Philadelphia's general obligation bonds are
rated Baa2 by Moody's and BBB by Standard & Poor's. There can be no
assurance that these ratings will not be lowered.
LITIGATION AND LEGISLATION RISKS
We do not know of any pending litigation that might have a material adverse
effect upon the Fund.
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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.
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. 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, youcan sell your units to
the Trustee at any time by sending the Trustee a letter (with any outstanding
certificates if you hold Unit certificates). You must properly endorse your
certificates (or execute a written transfer instrument with signatures
guaranteed by an eligible institution). Sometimes, additional documents are
needed such as a trust document, certificate of corporate authority, certificate
of death or appointment as executor, administrator or guardian.
Within seven days after your request and the necessary documents are received,
the Trustee will mail a check to you. Contact the Trustee for additional
information.
As long as we are maintaining a secondary market, the Trustee will sell your
units to us at a price based on net asset value. If there is no secondary
market, the Trustee may sell your units in the over-the-counter market for a
higher price, but it is not obligated to do so. In that case, you will receive
the net proceeds of the sale.
If the Fund does not have cash available to pay you for units you are selling,
the agent for the Sponsors will select bonds to be sold. Bonds will be selected
based on market and credit factors. These sales could be made at times when the
bonds would not otherwise be sold and may result in your receiving less than the
unit par value and also reduce the size and diversity of the Fund.
9
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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
with no sales fee. You may exchange units of this Fund for units of certain
other Defined Asset Funds at a reduced sales fee if your investment goals
change. To exchange units, you should talk to your financial professional about
what funds are exchangeable, suitable and currently available.
Normally, an exchange is taxable and you must recognize any gain or loss on the
exchange. However, the IRS may try to disallow a loss if the portfolios of the
two funds are not materially different; you should consult your own tax adviser.
We may amend or terminate this exchange option at any time without notice.
HOW THE FUND WORKS
PRICING
The price of a unit includes interest accrued on the bonds, less expenses, from
the initial most recent Record Day up to, but not including, the settlement
date, which is usually three business days after the purchase date of the unit.
A portion of the price of a unit consists of cash so that the Trustee can
provide you with regular monthly income. When you sell your units you will
receive your share of this cash.
EVALUATIONS
An independent Evaluator values thebonds 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
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.
SERVICING FEE
The Seller will act as servicing agent for the bonds and will collect the
principal and interest payments due and transfer the payments to the Trustee,
after deducting a servicing fee. The servicing fee is equal to
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0.25% of the outstanding principal amount of each bond for each day.
EXPENSES
The Trustee is paid monthly. It also benefits when it holds cash for the Fund in
non-interest bearing accounts. The Trustee may also receive additional amounts:
- to reimburse the Trustee for the Fund's operating expenses;
- for extraordinary services and costs of indemnifying the Trustee and the
Sponsors;
- costs of actions taken to protect the Fund and other legal fees and
expenses;
- expenses for keeping the Fund's registration statement current; and
- Fund termination expenses and any governmental charges.
The Sponsors are currently reimbursed up to 55 CENTS per $1,000 face amount
annually for providing portfolio supervisory, bookkeeping 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. The Fund also pays the Evaluator's fees.
The Trustee's, Sponsors' and Evaluator's fees may be adjusted for inflation
without investors' approval.
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.
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 will affect the size
and 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.
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FUND TERMINATION
The Fund will terminate following the stated maturity or sale of the last bond
in the portfolio. The Fund may also terminate earlier with the consent of
investors holding 51% of the units or if total assets of the Fund have fallen
below 40% of the face amount of bonds deposited. We will decide whether to
terminate the Fund early based on the same factors used in deciding whether or
not to offer units in the secondary market.
When the Fund is about to terminate you will receive a notice, and you will be
unable to sell your units after that time. On or shortly before termination, we
will sell any remaining bonds, and you will receive your final distribution. Any
bond that cannot be sold at a reasonable 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 maytransfer 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
12
<PAGE>
successor has accepted within 30 days after notice of resignation, the resigning
Trustee or Evaluator may petition a court to appoint a successor.
Any Sponsor may resign as long as one Sponsor with a net worth of $2 million
remains and agrees to the resignation. The remaining Sponsors and the Trustee
may appoint a replacement. If there is only one Sponsor and it fails to perform
its duties or becomes bankrupt the Trustee may:
- remove it and appoint a replacement Sponsor;
- liquidate the Fund; or
- continue to act as Trustee without a Sponsor.
Merrill Lynch, Pierce, Fenner & Smith Incorporated acts as agent for the
Sponsors.
The Trust Indenture contains customary provisions limiting the liability of the
Trustee, the Sponsors and the Evaluator.
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 Statement of Condition included in this
prospectus.
SPONSORS
The Sponsors are:
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (a wholly-owned subsidiary of
Merrill Lynch & Co., Inc.)
P.O. Box 9051,
Princeton, NJ 08543-9051
DEAN WITTER REYNOLDS INC. (a principal operating subsidiary of Morgan Stanley
Dean Witter & Co.)
Two World Trade Center--59th Floor,
New York, NY 10048
SALOMON SMITH BARNEY INC. (an indirectly wholly-owned subsidiary of Citigroup
Inc.)
388 Greenwich Street--23rd Floor,
New York, NY 10013
PRUDENTIAL SECURITIES INCORPORATED (an
indirect wholly-owned subsidiary of the
Prudential Insurance Company of America)
One New York Plaza
New York, NY 10292
Each Sponsor is a Delaware corporation and it, or its predecessor, has acted as
sponsor to many unit investment trusts. As a registered broker-dealer each
Sponsor buys and sells securities (including investment company shares) for
others (including investment companies) and participates as an underwriter in
various selling groups.
TRUSTEE
The Bank of New York, 101 Barclay Street, 17 W. New York, New York 10268, 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.
13
<PAGE>
UNDERWRITERS' AND SPONSORS' PROFITS
Underwriters receive sales charges when they sell units. The Sponsors also
realized a profit or loss on the initial date of deposit of the bonds. 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.
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
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.
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.
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 the 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 bond,
related proceedings or the basis for the opinion of counsel for the issuer. We
cannot assure you that the issuers (or other users of bond proceeds) have
complied or will comply with any requirements necessary for the bond to be
tax-exempt. If the bond was 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:
14
<PAGE>
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 the bond in the Fund.
Our counsel is of the opinion that the Fund (and therefore the investors, as
discussed below) will be treated as owning the bond, notwithstanding the
Seller's repurchase commitments. However, because there are no regulations,
published rulings or judicial decisions that characterize for federal income tax
purposes repurchase commitments like the Seller's with respect to the bond, it
is not certain that the IRS will agree with the conclusions of our counsel.
Therefore, it is possible that the IRS may take actions that might result in the
Fund (and therefore the investors) not being treated as owning the bonds for
federal income tax purposes.
GAIN OR LOSS UPON DISPOSITION
When all or part of your share of the bond is disposed of (for example, when the
Fund sells, exchanges or redeems the bond or when you sell or exchange your
units), you will generally recognize capital gain or loss.
While not free from doubt, the opinion of our counsel is that any capital gain
or loss derived from the Fund will be short-term capital gain or loss regardless
of the time that you have held your Units.
YOUR BASIS IN THE BOND
You may be required to allocate a portion of your cost for your Units to the
Seller's repurchase commitments with respect to the bond. When all or part of
your pro rata portion of the bond is disposed of (and the commitment with
respect to the bond simultaneously is disposed of, lapses or is exercised), both
your basis in your pro rata portion of the bond and your basis in your pro rata
portion of the commitment will be taken into account in determining your overall
net income or loss from the disposition. In some cases, this overall net income
or loss may consist of ordinary income attributable to market discount on the
pro rata portion of the bond and of capital loss attributable to the commitment.
The deductibility of capital losses is subject to limitations. You should
consult your tax adviser in this regard.
If your basis for your pro rata portion of the bond (after giving effect to any
required allocation to the commitment) exceeds the redemption price at maturity
of the bond, you may be considered to have purchased your pro rata portion of
the bond at a 'bond premium,' which must be amortized.
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.
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
15
<PAGE>
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.
PENNSYLVANIA TAXES
In the opinion of Drinker Biddle & Reath LLP, Philadelphia, Pennsylvania,
special counsel on Pennsylvania tax matters:
The Pennsylvania Trust will not be taxed as a corporation under the current
income tax laws of Pennsylvania. Your income from the Trust may be subject to
taxation depending on where you live. If you are a Pennsylvania taxpayer your
interest income from the Trust will be tax-exempt to the extent that income is
earned on bonds that are tax-exempt for Pennsylvania purposes. However, gains on
the sale of bonds by the Trust or on the sale of your units will be subject to
Pennsylvania income tax. If you are a Philadelphia resident you may be subject
to the Philadelphia school district tax on any gains realized from the sale of
bonds by the Trust or the sale of units by you to the extent either the bonds or
units have been held for six months or less. You should consult your tax adviser
as to the consequences to you with respect to any investment you make in the
Trust.
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.
16
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
PENNSYLVANIA PUT SERIES - A
(14 DAY REPURCHASE - COLLATERAL BACKED)
REPORT OF INDEPENDENT ACCOUNTANTS
The Sponsors, Trustee and Holders
of Defined Asset Funds - Municipal Investment Trust Fund,
Pennsylvania Put Series - A (14 Day Repurchase - Collateral
Backed)
We have audited the accompanying statement of condition of Defined Asset Funds -
Municipal Investment Trust Fund, Pennsylvania Series - A, (14 Day Repurchase -
Collateral Backed), including the portfolio, as of August 31, 2000 and the
related statements of operations and of changes in net assets for the years
ended August 31, 2000, 1999 and 1998. 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 audit 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. Securities owned at August 31, 2000, as shown in such portfolio,
were confirmed to us by The Bank of New York, the Trustee. An audit also
includes assessing the accounting principles used and significant estimates made
by the Trustee, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Defined Asset Funds - Municipal
Investment Trust Fund, Pennsylvania Series - A (14 Day Repurchase - Collateral
Backed) at August 31, 2000 and the results of its operations and changes in its
net assets for the above- stated years in accordance with accounting principles
generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
New York, N.Y.
October 26, 2000
D - 1
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
PENNSYLVANIA PUT SERIES - A
(14 DAY REPURCHASE - COLLATERAL BACKED)
STATEMENT OF CONDITION
AS OF AUGUST 31, 2000
<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $2,188,646)(Note 1)...................... $2,191,468
Securities called for redemption
(cost $14,133)(Note 5)......................... 14,133
Accrued interest receivable...................... 14,683
Cash............................................. 42,305
-------------
Total trust property................. 2,262,589
LESS LIABILITY - Accrued expenses.................. 10,282
-------------
NET ASSETS, REPRESENTED BY:
14,037 units of fractional undivided
interest outstanding (Note 3).................. $2,219,260
Undistributed net investment income.............. 33,047
-------------
$2,252,307
=============
UNIT VALUE ($2,252,307/14,037 units)............... $160.46
=============
</TABLE>
See Notes to Financial Statements.
D - 2
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
PENNSYLVANIA PUT SERIES - A
(14 DAY REPURCHASE - COLLATERAL BACKED)
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
........Years Ended August 31,...........
2000 1999 1998
-----------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income........................... $177,936 $196,943 $225,996
Trustee's fees and expenses............... (13,663) (7,148) (15,040)
Sponsors' fees............................ (1,100) (3,324) (2,510)
-----------------------------------------
Net investment income..................... 163,173 186,471 208,446
-----------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain on securities sold
sold or redeemed........................ 6
Unrealized depreciation of investments.... (353) (629) (405)
-----------------------------------------
Net realized and unrealized loss on
investments............................. (353) (623) (405)
-----------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS........................... $162,820 $185,848 $208,041
=========================================
</TABLE>
See Notes to Financial Statements.
D - 3
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
PENNSYLVANIA PUT SERIES - A
(14 DAY REPURCHASE - COLLATERAL BACKED)
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
........Years Ended August 31,...........
2000 1999 1998
-----------------------------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income....................... $ 163,173 $ 186,471 $ 208,446
Realized gain on securities sold
sold or redeemed.......................... 6
Unrealized depreciation of investments...... (353) (629) (405)
-----------------------------------------
Net increase in net assets resulting
from operations........................... 162,820 185,848 208,041
-----------------------------------------
DISTRIBUTIONS TO HOLDERS (Note 2):
Income...................................... (161,286) (186,450) (227,413)
Principal................................... (185,603) (364,566) (268,234)
-----------------------------------------
Total distributions......................... (346,889) (551,016) (495,647)
-----------------------------------------
CAPITAL SHARE TRANSACTIONS - Redemptions of
88.......................................... (14,103)
-----------------------------------------
NET DECREASE IN NET ASSETS.................... (198,172) (365,168) (287,606)
NET ASSETS AT BEGINNING OF YEAR............... 2,450,479 2,815,647 3,103,253
-----------------------------------------
NET ASSETS AT END OF YEAR..................... $2,252,307 $2,450,479 $2,815,647
=========================================
PER UNIT:
Income distributions during year............ $11.43 $13.20 $16.10
=========================================
Principal distributions during year......... $13.14 $25.81 $18.99
=========================================
Net asset value at end of year.............. $160.46 $173.49 $199.34
=========================================
TRUST UNITS OUTSTANDING AT END OF YEAR........ 14,037 14,125 14,125
=========================================
</TABLE>
See Notes to Financial Statements.
D - 4
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
PENNSYLVANIA PUT SERIES - A
(14 DAY REPURCHASE - COLLATERAL BACKED)
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940 as a Unit
Investment Trust. The following is a summary of significant accounting
policies consistently followed by the Fund in the preparation of its
financial statements. The policies are in accordance with accounting
principles generally accepted in the United States of America.
(a) Securities are stated at value as determined by the Evaluator
based on bid side evaluations for the securities.
(b) The Fund is not subject to income taxes. Accordingly, no
provision for such taxes is required.
(c) Interest income is recorded as earned.
2. DISTRIBUTIONS
A distribution of net investment income is made to Holders each month.
Receipts other than interest, after deductions for redemptions and
applicable expenses, are also distributed periodically.
3. NET CAPITAL
<TABLE>
<S> <C>
Cost of 14,037 units at Date of Deposit............. $14,554,088
Less sales charge................................... 509,402
--------------
Net amount applicable to Holders.................... 14,044,686
Redemptions of units - net cost of 88 units
redeemed less redemption amounts.................. 74,134
Realized gain on securities sold or redeemed........ 6,123
Principal distributions............................. (11,908,505)
Unrealized appreciation of investments.............. 2,822
--------------
Net capital applicable to Holders................... $2,219,260
==============
</TABLE>
4. INCOME TAXES
As of August 31, 2000, unrealized appreciation of investments, based on
cost for Federal income tax purposes, aggregated $2,822, all of which
related to appreciated securities. The cost of investment securities for
Federal income tax purposes was $2,188,646 at August 31, 2000.
D - 5
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
PENNSYLVANIA PUT SERIES - A
(14 DAY REPURCHASE - COLLATERAL BACKED)
NOTES TO FINANCIAL STATEMENTS
5. SECURITIES CALLED FOR REDEMPTION
$14,133 face amount of Clearfield Co., PA, Industrial Development
Authority Manufacturing Note (Clearfield Mall Project)were called for
redemption on September 1, 2000 . Such securities are valued at the amount
of the proceeds subsequently received.
D - 6
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
PENNSYLVANIA PUT SERIES - A
(14 DAY REPURCHASE - COLLATERAL BACKED)
PORTFOLIO
AS OF AUGUST 31, 2000
<TABLE>
<CAPTION>
Rating Optional
Portfolio No. and Title of of Face Redemption
Securities Issues(1) Amount Coupon Maturities(3) Provisions(3) Cost Value(2)
---------- --------- ------ ------ ------------- ------------- ---- --------
<S> <C> <C> <C> <C> <C> <C> <C>
1 Clearfield Co., PA Industrial NR $2,188,646 8.000% 2004 12/01/00 $2,188,646 $2,191,468
Development Authority Manufacturing @ 100.000
Note (Clearfield Mall Project)
-------------- -------------- --------------
TOTAL $2,188,646 $2,188,646 $2,191,468
============== ============== ==============
</TABLE>
See Notes to Portfolio.
D - 7
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
PENNSYLVANIA PUT SERIES - A
(14 DAY REPURCHASE - COLLATERAL BACKED)
NOTES TO PORTFOLIO
AS OF AUGUST 31, 2000
(1) See Notes to Financial Statements.
(2) Optional redemption provisions, which may be exercised in whole or in
part, are initially at prices of par plus a premium, then subsequently at
prices declining to par. Certain securities may provide for redemption at
par prior or in addition to any optional or mandatory redemption dates or
maturity, for example, through the operation of a maintenance and
replacement fund, if proceeds are not able to be used as contemplated,
the project is condemned or sold or the project is destroyed and
insurance proceeds are used to redeem the securities. Many of the
securities are also subject to mandatory sinking fund redemption
commencing on dates which may be prior to the date on which securities
may be optionally redeemed. Sinking fund redemptions are at par and
redeem only part of the issue. Some of the securities have mandatory
sinking funds which contain optional provisions permitting the issuer to
increase the principal amount of securities called on a mandatory
redemption date. The sinking fund redemptions with optional provisions
may, and optional refunding redemptions generally will, occur at times
when the redeemed securities have an offering side evaluation which
represents a premium over par. To the extent that the securities were
acquired at a price higher than the redemption price, this will represent
a loss of capital when compared with the Public Offering Price of the
Units when acquired. Distributions will generally be reduced by the
amount of the income which would otherwise have been paid with respect to
redeemed securities and there will be distributed to Holders any
principal amount and premium received on such redemption after satisfying
any redemption requests for Units received by the Fund. The estimated
current return may be affected by redemptions.
(3) All securities in the Fund have been purchased from Dollar Bank of
Pittsburgh, Pennsylvania (formerly Dollar Savings Bank) (the
"Seller")which,in order to provide liquidity, has committed to repurchase
at par any time on fourteen calendar days' notice any securities in the
event it is necessary to sell any securities to meet redemptions of units
(should such redemptions be necessary despite the market-making activity
of the Sponsors). The Seller has also committed to repurchase on fourteen
calendar days' notice to par any securities if the issuer thereon should
fail to make payments of principal (and premium which may be owing due to
redemption prior to maturity or otherwise) thereof and interest thereof
or in the event that the interest thereon should be deemed to be taxable.
In addition, the aforesaid repurchase commitment of the Seller are backed
by collateral. If required in certain cumstances, at the Collateral Agent
will liquidate Collateral to satisfy the Seller's Agent will liquidate
Collateral to satisfy the Seller's repurchase commitment. There is no
assurance as to the continuing ability of Issuers of the Securities to
meet their pricinpal and interest requirements. Additionally, if a
receiver or conservator is appointed for a Seller, recent changes in
Federal law may permit Federal banking regulators to refuse to honor the
Seller's repurchase commitment. In that case, the liquidity of the Fund's
portfolio could be impaired.
D - 8
<PAGE>
Defined
Asset Funds-Registered Trademark-
<TABLE>
<S> <C>
HAVE QUESTIONS ? MUNICIPAL INVESTMENT TRUST FUND
Request the most PENNSYLVANIA SERIES--A
recent free Information (A Unit Investment Trust)
Supplement that gives more ---------------------------------------
details about the Fund, This Prospectus does not contain
by calling: complete information about the
The Bank of New York investment company filed with the
1-800-221-7771 Securities and Exchange Commission in
Washington, D.C. under the:
- Securities Act of 1933 (file no.
2-88250) 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.
13795--12/00
</TABLE>
