Rule 497(b)
Registration No. 33-02777
CHANGES IN TRUST PORTFOLIO
MUNICIPAL SECURITIES TRUST HIGH INCOME SERIES 3
St. Louis, Missouri, Industrial Development Authority
Subordinated Multi-Family Housing Refunding Revenue Bonds
Series 1989B Pinetree Apartments Project
Series 1989E Westbrooke Village West Apartments Project
Series 1979H Westbrooke Apartments Project
The Trustee for the above captioned Bonds has notified the
Sponsor of the Borrower's failure to pay the December 15, 1993 semiannual
interest payment on the Bonds.
Payment of debt service on the three subordinated bond issues is
supported by the combined net revenues of the Pinetree, Westbrooke and
Westbrooke Village West Projects, after provision has been made for
payment of debt service on prior lien bonds issued for the three Projects.
The Borrower has attributed the failure to make the December 15, 1993
interest payment on the subordinated bonds to a substantial increase in
property taxes assessed on the three properties and the insufficiency of
Project cash flows to meet both this expense and Subordinated Bond
interest obligations. The borrower reports that he has appealed the
property tax increase.
The Trustee for Municipal Securities Trust High Income Series #2
has stopped accruing interest on Bonds held in the Trust pending
resolution of the property tax issue and payment of December 1993
semiannual interest on the Subordinated Bonds.
The cessation of interest accrual on the Bonds held in the Trust
will result in revised annual income distributions of $60.81 for the
monthly option, $61.30 for the semi-annual option, and $61.44 for the
annual option.
Together, the Series 1989B, E and H Bonds constitute 8.3% of the
aggregate principal amount of the Trust.
The Trustee for HIS #3, will notify unitholders of significant
developments as they occur.
4/4/94
