<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON AUGUST 19, 1998
REGISTRATION NO. 33-38787
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------------------------
POST-EFFECTIVE AMENDMENT NO. 8
TO
FORM S-6
------------------------------------------
FOR REGISTRATION UNDER THE SECURITIES ACT
OF 1933 OF SECURITIES OF UNIT INVESTMENT
TRUSTS REGISTERED ON FORM N-8B-2
------------------------------------------
A. EXACT NAME OF TRUST:
DEFINED ASSET FUNDS--
CORPORATE INCOME FUND
INTERMEDIATE TERM SERIES--29
(A UNIT INVESTMENT TRUST)
B. NAMES OF DEPOSITORS:
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
SMITH BARNEY INC.
PRUDENTIAL SECURITIES INCORPORATED
DEAN WITTER REYNOLDS INC.
PAINEWEBBER INCORPORATED
C. COMPLETE ADDRESSES OF DEPOSITORS' PRINCIPAL EXECUTIVE OFFICES:
MERRILL LYNCH, PIERCE,
FENNER & SMITH
INCORPORATED
DEFINED ASSET FUNDS
POST OFFICE BOX 9051
PRINCETON, NJ 08543-9051 SMITH BARNEY INC.
388 GREENWICH
STREET--23RD FLOOR
NEW YORK, NY 10013
PRUDENTIAL SECURITIES PAINEWEBBER INCORPORATED DEAN WITTER REYNOLDS INC.
INCORPORATED 1285 AVENUE OF THE TWO WORLD TRADE
ONE NEW YORK PLAZA AMERICAS CENTER--59TH FLOOR
NEW YORK, NY 10292 NEW YORK, NY 10019 NEW YORK, NY 10048
D. NAMES AND COMPLETE ADDRESSES OF AGENTS FOR SERVICE:
TERESA KONCICK, ESQ. ROBERT E. HOLLEY LAURIE A. HESSLEIN
P.O. BOX 9051 1200 HARBOR BLVD. 388 GREENWICH ST.
PRINCETON, NJ 08543-9051 WEEHAWKEN, NJ 07087 NEW YORK, NY 10013
LEE B. SPENCER, JR. COPIES TO: DOUGLAS LOWE, ESQ.
ONE NEW YORK PLAZA PIERRE DE SAINT PHALLE, DEAN WITTER REYNOLDS INC.
NEW YORK, NY 10292 ESQ. TWO WORLD TRADE
450 LEXINGTON AVENUE CENTER--59TH FLOOR
NEW YORK, NY 10017 NEW YORK, NY 10048
The issuer has registered an indefinite number of Units under the Securities Act
of 1933 pursuant to Rule 24f-2 and filed the Rule 24f-2 Notice for the most
recent fiscal year on March 10, 1998.
Check box if it is proposed that this filing will become effective on August 28,
1998 pursuant to paragraph (b) of Rule 485. / x /
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<PAGE>
DEFINED ASSET FUNDSSM
- --------------------------------------------------------------------------------
CORPORATE This Defined Fund is a portfolio of preselected
INCOME FUND bonds formed to provide a high level of current
INTERMEDIATE TERM income through investment in a fixed Portfolio of
SERIES--29 intermediate-term corporate bonds There is no
(A UNIT INVESTMENT assurance that this objective will be met because
TRUST) it is subject to the continuing ability of issuers
- ------------------------------of the bonds to meet their principal and interest
/ / DESIGNED FOR HIGH CURRENT requirements. Furthermore, the market value of the
INCOME bonds, and therefore the value of the Units, will
/ / DEFINED PORTFOLIO OF fluctuate with changes in interest rates and other
CORPORATE BONDS factors. Due to withholding tax requirements, the
/ / MONTHLY INCOME fund may not be suitable for foreign investors.
Minimum Purchase: One Unit
-------------------------------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE SECURITIES COMMISSION NOR
HAS THE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS DOCUMENT. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
-------------------------------------------------
SPONSORS: PART A OF THIS PROSPECTUS MAY NOT BE DISTRIBUTED
Merrill Lynch, UNLESS ACCOMPANIED BY CORPORATE INCOME FUND
Pierce, Fenner & Smith PROSPECTUS PART B.
Incorporated INVESTORS SHOULD READ BOTH PARTS OF THIS
Smith Barney Inc. PROSPECTUS CAREFULLY AND RETAIN THEM FOR FUTURE
Prudential Securities REFERENCE.
Incorporated INQUIRIES SHOULD BE DIRECTED TO THE TRUSTEE AT
Dean Witter Reynolds Inc. 1-800-221-7771.
PaineWebber Incorporated PROSPECTUS PART A DATED AUGUST 28, 1998.
<PAGE>
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Defined Asset FundsSM
Defined Asset Funds is America's oldest and largest family of unit investment
trusts, with over $115 billion sponsored over the last 25 years. Each Defined
Asset Fund is a portfolio of preselected securities. The portfolio is divided
into 'units' representing equal shares of the underlying assets. Each unit
receives an equal share of income and principal distributions.
Defined Asset Funds offer several defined 'distinctives'. You know in advance
what you are investing in and that changes in the portfolio are limited--a
defined portfolio. Most defined bond funds pay interest monthly--defined income.
The portfolio offers a convenient and simple way to invest-- simplicity defined.
Your financial professional can help you select a Defined Asset Fund to meet
your personal investment objectives. Our size and market presence enable us to
offer a wide variety of investments. The Defined Asset Funds family offers:
o Municipal portfolios
o Corporate portfolios
o Government portfolios
o Equity portfolios
o International portfolios
The terms of Defined Funds are as short as one year or as long as 30 years.
Special defined bond funds are available including: insured funds, double and
triple tax-free funds and funds with 'laddered maturities' to help protect
against changing interest rates. Defined Asset Funds are offered by prospectus
only.
- ----------------------------------------------------------------
Defined Intermediate Term Series
- ----------------------------------------------------------------
Our defined portfolio of intermediate term corporate bonds offers you a simple
and convenient way to earn a high level of current monthly income. And by
purchasing Defined Asset Funds, you not only receive professional selection but
also gain the advantage of reduced risk by investing in bonds of several
different issuers.
INVESTMENT OBJECTIVE
To provide a high level of current income through investment in a fixed
portfolio consisting primarily of intermediate-term corporate bonds.
DIVERSIFICATION
The Portfolio contains 12 bonds with an estimated average life of 3 years.
Spreading your investment among different issuers reduces your risk, but does
not eliminate it. Because of maturities, sales or other dispositions of bonds,
the size, composition and return of the Portfolio will change over time. The
Fund was created June 12, 1991. The information in this prospectus is as of May
31, 1998, the evaluation date.
- ----------------------------------------------------------------
Defining Your Portfolio
- ----------------------------------------------------------------
PROFESSIONAL SELECTION AND SUPERVISION
The Portfolio contains a variety of bonds selected by experienced buyers. The
Fund is not actively managed; however, it is regularly reviewed and a bond can
be sold if retaining it is considered detrimental to investors' interests.
TYPES OF BONDS
The Portfolio consists of bonds issued by 12 different corporate issuers.
APPROXIMATE
ISSUERS PORTFOLIO PERCENTAGE
/ / Consumer Goods Companies 7%
/ / Financial Institutions 39%
/ / Manufacturing 19%
/ / Natural Resources 3%
/ / Oil/Gas 9%
/ / Miscellaneous 11%
/ / Retailing 9%
/ / Service Companies 3%
PREMIUM AND DISCOUNT ISSUES
On the evaluation date, all of the bonds were valued at a premium over par (see
Risk Factors in Part B).
BOND CALL FEATURES
It is possible that during periods of falling interest rates, a bond with a
coupon higher than current market rates will be prepaid or 'called', at the
option of the bond issuer, before its expected maturity. When bonds are
initially callable, the price is usually at a premium to par which then declines
to par over time. Bonds may also be subject to a mandatory sinking fund or have
extraordinary redemption provisions. For example, if the bond's proceeds are not
able to be used as intended the bond may be redeemed. This redemption and the
sinking fund are often at par.
CALL PROTECTION
None of the bonds are subject to optional refunding or call provisions.
TAX INFORMATION
Interest on the bonds is taxable for U.S. investors. Due to withholding
requirements, the fund may not be suitable for foreign investors. (See Taxes on
pages A-4 and A-5.)
In the opinion of special counsel to the Sponsors, each investor will be
considered to have received the interest on his pro rata portion of each bond
when interest on the bond is received by the Fund, even though a portion of the
interest payments may be used to pay fund expenses.
A-2
<PAGE>
- ---------------------------------------------------------------
Defining Your Investment
- ---------------------------------------------------------------
PUBLIC OFFERING PRICE PER UNIT $1,099.22
The Public Offering Price as of May 31, 1998, the evaluation date, is based on
the aggregate bid side value of the underlying bonds in the Fund ($18,315,344),
divided by the number of units outstanding (17,943) plus a sales charge of 4.75%
of the Public Offering Price (4.987% on the value of the underlying bonds). The
Public Offering Price on any subsequent date will vary. An amount equal to
principal cash, if any, as well as net accrued but undistributed interest on the
unit is added to the Public Offering Price. The underlying bonds are evaluated
by an independent evaluator at 3:30 p.m. Eastern time on every business day.
REINVESTMENT OPTION
You can elect to automatically reinvest your distributions into a separate
portfolio of corporate bonds. Reinvesting helps to compound your income.
PRINCIPAL DISTRIBUTIONS
Principal from sales, redemptions and maturities of bonds in the Fund will be
distributed to investors periodically when the amount to be distributed is more
than $5.00 per unit.
TERMINATION DATE
The Fund will generally terminate following the maturity date of the last
maturing bond listed in the Portfolio. The Fund may be terminated earlier if the
value is less than 40% of the face amount of bonds deposited. On the evaluation
date the value of the Fund was 70% of the face amount of bonds deposited.
- ---------------------------------------------------------------
Defining Your Risks
- ---------------------------------------------------------------
RISK FACTORS
Unit price fluctuates and could be adversely affected by increasing interest
rates as well as the financial condition of the issuers of the bonds. Because of
the possible maturity, sale or other disposition of securities, the size,
composition and return of the portfolio may change at any time. Because of the
sales charges, returns of principal and fluctuations in unit price, among other
reasons, the sale price will generally be less than the cost of your units. Unit
prices could also be adversely affected if a limited trading market exists in
any Security to be sold. There is no guarantee that the Fund will achieve its
investment objective.
The Fund is concentrated in bonds issued by Financial Institutions and is
therefore dependent to a significant degree on revenues generated from those
particular activities (see Risk Factors in Part B).
- ---------------------------------------------------------------
Defining Your Costs
- ---------------------------------------------------------------
SALES CHARGES
Although the Fund is a unit investment trust rather than a mutual fund, the
following information is presented to permit a comparison of fees and an
understanding of the direct or indirect costs and expenses that you pay.
As a %
of Secondary
Market
Public
Offering Price
--------------
Maximum Sales Charge 4.75%
ESTIMATED ANNUAL FUND OPERATING EXPENSES
Per Unit
--------------
Trustee's Fee $ 0.68
Portfolio Supervision, Bookkeeping and
Administrative Fees $ 0.39
Evaluator's Fee $ 0.23
Other Operating Expenses $ 0.16
--------------
TOTAL $ 1.46
REDEEMING OR SELLING YOUR INVESTMENT
You may redeem or sell your units at any time. Your price is based on the Fund's
then current net asset value (based on the lower, bid side evaluation of the
bonds, as determined by an independent evaluator), plus principal cash, if any,
as well as accrued interest. The per unit bid side redemption and secondary
market repurchase price as of the evaluation date was $1,047.01 ($52.21 less
than the Public Offering Price). There is no fee for redeeming or selling your
units.
- ---------------------------------------------------------------
Defining Your Income
- ---------------------------------------------------------------
MONTHLY INTEREST INCOME
The Fund pays monthly income, even though the bonds generally pay interest
semi-annually.
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 $ 7.28
Annual Income per unit: $ 87.40
These figures are estimates determined as of the evaluation date and actual
payments may vary.
A-3
<PAGE>
- ----------------------------------------------------------------
Taxes
- ----------------------------------------------------------------
Substitute the following for Taxes in Part B.
The following summary describes some of the important income tax consequences of
holding Units, assuming that the investor is not a dealer, financial institution
or insurance company or other investor with special circumstances. Investors
should consult their tax advisers about U.S., state and local or foreign taxes
that may apply to an investment in the Fund.
Neither the Sponsors nor Davis Polk & Wardwell, special counsel for the
Sponsors, has reviewed the issuance of the Bonds or related facts and
circumstances. The Sponsors believe that each issuer treats its respective Bonds
as debt for U.S. federal income tax purposes. However, the Internal Revenue
Service and the courts are not bound by an issuer's treatment. If a Bond is
recharacterized as equity for having more equity than debt features, foreign
investors (including non-resident alien individuals and foreign corporations)
not engaged in U.S. trade or business will generally be subject to 30% U.S.
withholding tax (or lower applicable treaty rate) with respect to interest on
the Bond.
The Sponsors believe that (i) Bonds in the Portfolio yielding U.S. source
interest income (typical for bonds of U.S. issuers) were issued after July 18,
1984 (see Foreign Investors below) and (ii), although no assurance can be given,
interest on any foreign Bonds in the Portfolio will generally not be subject to
foreign withholding taxes under current laws (which are subject to change). If
foreign withholding taxes were imposed, then in addition to interest received by
the Fund on any Bonds issued by foreign obligors, the Fund would report as gross
income to an investor any amount withheld with respect to the interest.
Investors should consult their own tax advisers regarding these matters and the
possible availability of foreign tax credits or deductions.
After the end of each calendar year, the Trustee will furnish to each investor
an annual statement containing information relating to the interest received and
any 'original issue discount' accrued by the Fund on the Bonds, the cash
proceeds received by the Fund from the disposition of any Bonds, and the fees
and expenses paid by the Fund. The Trustee will also furnish annual information
returns to each investor and to the Internal Revenue Service.
In the opinion of Davis Polk & Wardwell, under existing law:
GENERAL TREATMENT OF THE FUND
The fund will not be taxed as a corporation for federal income tax purposes or
for New York State or City purposes, and each investor will be considered to own
directly a share of each Bond in the Fund. Each investor will be considered to
have received the interest (and accrued the original issue discount, if any) on
his pro rata portion of each Bond when interest is received (or original issue
discount is accrued) by the Fund, regardless of whether the interest is
automatically reinvested in the Fund or a portion is used to pay Fund expenses.
INCOME OR LOSS UPON DISPOSITION
Upon a disposition of all or part of an investor's pro rata portion of a Bond
(by sale, exchange or redemption of the Bond or his Units), an investor will
generally recognize capital gain or loss. However, gain from the disposition
will generally be ordinary income to the extent of any accrued market discount.
An investor will generally have market discount to the extent that his basis in
a Bond when he purchases a Unit is less than its stated redemption price at
maturity (or, in the case of a Bond issued with original issue discount, the
issue price increased by original issue discount that has accrued on the Bond
before his purchase). Investors should consult their tax advisers in this
regard.
The excess of a non-corporate investor's net long-term capital gains over his
net short-term capital losses may be subject to tax at a lower rate than
ordinary income. A capital gain or loss is long-term if the investment is held
for more than one year and short-term if held for one year or less. Because the
deduction of capital losses is subject to limitations, an investor may not be
able to deduct all of his capital losses. Non-corporate investors who have held
their pro rata portions of Bonds for more than 18 months may be entitled to a
20% maximum federal tax rate for gains from the sale of these Bonds or
corresponding units. (See Defining Your Investment--Termination Date.) Investors
should consult their tax advisers in this regard.
INVESTOR'S BASIS IN THE SECURITIES
An investor's aggregate basis in the Bonds will be equal to the cost of his
Units, including any sales charges and the organizational expenses borne by the
investor but excluding any amount paid for accrued interest, and adjusted to
reflect accruals of 'original issue discount', 'acquisition premium' and 'bond
premium'. Investors should consult their tax advisers in this regard.
ORIGINAL ISSUE DISCOUNT, ACQUISITION PREMIUM AND BOND PREMIUM
Original issue discount accrues in accordance with a constant yield method based
on a compounding of interest and is generally equal to the excess of a Bond's
stated redemption price at maturity over its original issue price. Original
issue discount inclusions are reduced by accruals of acquisition premium. An
investor will have acquisition premium to the extent his basis in a Bond when he
purchases a Unit is less than the stated redemption price at maturity but more
than the issue price increased by any original issue
A-4
<PAGE>
discount that has accrued on the bond before his purchase.
Generally, bond premium accruals on a Bond will be based upon the excess of an
investor's basis in the Bond at the time of purchasing a Unit over its stated
redemption price at maturity. If an investor has elected to amortize bond
premium, which is an election that applies to all debt obligations of an
investor and that can be revoked only with consent of the Internal Revenue
Service, the amount amortized will offset the investor's interest from the Bond
and reduce the investor's basis. Investors should consult their tax advisers in
this regard.
EXPENSES
An individual investor who itemizes deductions may deduct his pro rata share of
current ongoing Fund expenses only to the extent that such amount, together with
the investor's other miscellaneous deductions, exceeds 2% of his adjusted gross
income. The Internal Revenue Code further restricts the ability of an individual
investor with an adjusted gross income in excess of a specified amount (for
1998, $124,500 or $62,250 for a married person filing a separate return) to
claim itemized deductions (including his pro rata share of Fund expenses).
FOREIGN INVESTORS
Notwithstanding the foregoing, foreign investors (including non-resident alien
individuals and foreign corporations) not engaged in U.S. trade or business will
generally not be subject to U.S. federal income tax, including withholding tax,
on the interest or gain on a Bond if (i) the investor meets certain
requirements, including the certification of foreign status and other matters,
and (ii), with respect any Bond yielding U.S. source interest income (typical
for Bonds of U.S. issuers), the Bond was issued after July 18, 1984. Under
certain circumstances, withholding agents will file foreign person information
rturns with the Internal Revenue Service. Foreign investors should consult their
own tax advisers about the possible application of federal, state and local
taxes in the U.S. and their foreign countries of residence or organization.
A-5
<PAGE>
DEFINED ASSET FUNDS - CORPORATE INCOME FUND,
INTERMEDIATE TERM SERIES - 29
REPORT OF INDEPENDENT ACCOUNTANTS
The Sponsors, Trustee and Holders
of Defined Asset Funds - Corporate Income Fund,
Intermediate Term Series - 29:
We have audited the accompanying statement of condition of Defined
Asset Funds - Corporate Income Fund, Intermediate Term Series - 29,
including the portfolio, as of May 31, 1998 and the related
statements of operations and of changes in net assets for the years
ended May 31, 1998, 1997 and 1996. 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 generally accepted
auditing standards. 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 May 31,
1998, 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 - Corporate Income Fund, Intermediate Term Series - 29 at
May 31, 1998 and the results of its operations and changes in its net
assets for the above-stated years in conformity with generally
accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, N.Y.
August 4, 1998
D - 1
<PAGE>
DEFINED ASSET FUNDS - CORPORATE INCOME FUND,
INTERMEDIATE TERM SERIES - 29
STATEMENT OF CONDITION
AS OF MAY 31, 1998
<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $16,771,475)(Note 1)..................... $ 18,315,344
Accrued interest receivable...................... 334,474
Cash............................................. 118,617
_____________
Total trust property................. 18,768,435
LESS LIABILITY - Accrued expenses.................. 5,481
_____________
NET ASSETS, REPRESENTED BY:
17,493 units of fractional undivided
interest outstanding (Note 3).................. $18,373,779
Undistributed net investment income.............. 389,175
_____________
$18,762,954
=============
UNIT VALUE ($18,762,954/17,493 units).............. $1,072.60
=============
</TABLE>
See Notes to Financial Statements.
D - 2
<PAGE>
DEFINED ASSET FUNDS - CORPORATE INCOME FUND,
INTERMEDIATE TERM SERIES - 29
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
.........Years Ended May 31,............
1998 1997 1996
_________________________________________
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income........................... $1,644,785 $1,858,264 $2,095,974
Trustee's fees and expenses............... (16,934) (24,407) (25,928)
Sponsors' fees............................ (7,768) (8,818) (18,721)
_________________________________________
Net investment income..................... 1,620,083 1,825,039 2,051,325
_________________________________________
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain on securities sold
or redeemed............................. 214,754 194,773 198,892
Unrealized depreciation of investments.... (60,347) (241,944) (857,114)
_________________________________________
Net realized and unrealized gain (loss)
on investments.......................... 154,407 (47,171) (658,222)
_________________________________________
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS........................... $1,774,490 $1,777,868 $1,393,103
=========================================
</TABLE>
See Notes to Financial Statements.
D - 3
<PAGE>
DEFINED ASSET FUNDS - CORPORATE INCOME FUND,
INTERMEDIATE TERM SERIES - 29
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
.........Years Ended May 31,............
1998 1997 1996
_________________________________________
<S> <C> <C> <C>
OPERATIONS:
Net investment income....................... $ 1,620,083 $ 1,825,039 $ 2,051,325
Realized gain on securities sold
or redeemed............................... 214,754 194,773 198,892
Unrealized depreciation of investments...... (60,347) (241,944) (857,114)
_________________________________________
Net increase in net assets resulting
from operations........................... 1,774,490 1,777,868 1,393,103
_________________________________________
DISTRIBUTIONS TO HOLDERS (Note 2):
Income...................................... (1,622,577) (1,833,438) (2,066,858)
Principal................................... (99,751) (341,743) (38,243)
_________________________________________
Total distributions......................... (1,722,328) (2,175,181) (2,105,101)
_________________________________________
CAPITAL SHARE TRANSACTIONS - Redemptions of
1,886, 2,477 and 1,794 units, respectively.. (2,031,974) (2,682,106) (2,007,980)
_________________________________________
NET DECREASE IN NET ASSETS.................... (1,979,812) (3,079,419) (2,719,978)
NET ASSETS AT BEGINNING OF YEAR............... 20,742,766 23,822,185 26,542,163
_________________________________________
NET ASSETS AT END OF YEAR..................... $18,762,954 $20,742,766 $23,822,185
=========================================
PER UNIT:
Income distributions during year............ $87.73 $88.57 $89.88
=========================================
Principal distributions during year......... $5.38 $16.07 $1.66
=========================================
Net asset value at end of year.............. $1,072.60 $1,070.37 $1,089.96
=========================================
TRUST UNITS OUTSTANDING AT END OF YEAR........ 17,493 19,379 21,856
=========================================
</TABLE>
See Notes to Financial Statements.
D - 4
<PAGE>
DEFINED ASSET FUNDS - CORPORATE INCOME FUND,
INTERMEDIATE TERM SERIES - 29
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
conformity with generally accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator
based on bid side evaluations for the securities. See "How to
Sell Units - Trustee's Redemption of Units" in this Prospectus,
Part B. Gains or losses on sales or redemptions are computed
using the first-in, first-out method.
(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 distributed as explained
in "Income, Distributions and Reinvestment - Distributions" in this
Prospectus, Part B.
3. NET CAPITAL
<TABLE>
<S> <C>
Cost of 17,493 units at Date of Deposit............. $17,944,502
Less sales charge................................... 717,835
______________
Net amount applicable to Holders.................... 17,226,667
Redemptions of units - net cost of 8,607 units
redeemed less redemption amounts.................. (884,438)
Realized gain on securities sold or redeemed........ 1,047,412
Principal distributions............................. (559,731)
Unrealized appreciation of investments.............. 1,543,869
______________
Net capital applicable to Holders................... $ 18,373,779
==============
</TABLE>
4. INCOME TAXES
As of May 31, 1998, unrealized appreciation of investments, based
on cost for Federal income tax purposes, aggregated $1,543,869, all of
which related to appreciated securities. The cost of investment
securities for Federal income tax purposes was $16,771,475 at
May 31, 1998.
D - 5
<PAGE>
DEFINED ASSET FUNDS - CORPORATE INCOME FUND,
INTERMEDIATE TERM SERIES - 29
PORTFOLIO
AS OF MAY 31, 1998
<TABLE><CAPTION>
Rating of Issues(1) Optional
Portfolio No. and Title of Moody's Standard & Face Redemption
Securities Investors Poor's Corp. Amount Coupon Maturities(3) Provisions(3) Cost Value(2)
__________ _________ ____________ ______ ______ _____________ _____________ ____ ________
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 Alco Standard, Notes A3 A- $ 2,000,000 8.875% 2001 None $ 1,981,250 $2,146,756
2 BankAmerica Corp., Sub. Notes A1 A 1,185,000 9.200 2003 None 1,159,750 1,338,385
3 Northern Arapaho Trust, Revenue NR NR 1,850,000 10.300 2001 None 1,873,875 1,942,500
Bonds, Ser. 1991 (Wind River
Reservation, WY)
4 Ford Capital BV, Debs. A1 A 2,025,000 9.375 2001 None 2,026,125 2,196,791
5 General Motors Corp., Debs. A2 NR 1,150,000 8.875 2003 None 1,129,750 1,279,625
6 Household Fin. Corp., Debs. A2 A 1,550,000 8.950 1999 None 1,523,625 1,603,972
7 ICI Wilmington, Notes Baa1 A- 500,000 8.750 2001 None 486,250 536,539
8 J.C. Penney & Co., Notes A2 A 1,560,000 9.050 2001 None 1,556,875 1,671,073
9 Texaco Capital, Gtd. Notes A1 A+ 1,500,000 8.500 2003 None 1,451,250 1,652,700
10 Universal Corp., Notes Baa1 A- 1,215,000 9.250 2001 None 1,225,175 1,304,496
11 Westinghouse Electric, Notes Ba1 BB 565,000 8.875 2001 None 560,900 597,455
12 Westpac Banking Corp., Sub. Debs. A1 A+ 1,885,000 9.125 2001 None 1,796,650 2,045,052
______________ ______________ _____________
TOTAL $16,985,000 $16,771,475 $18,315,344
============== ============== =============
See Notes to Portfolio.
</TABLE>
D - 6
<PAGE>
DEFINED ASSET FUNDS - CORPORATE INCOME FUND,
INTERMEDIATE TERM SERIES - 29
NOTES TO PORTFOLIO
AS OF MAY 31, 1998
(1) A description of the rating symbols and their meanings appears
under "Descriptions of Ratings" in this Prospectus, Part B. "NR",
if applicable, indicates that this security is not currently
rated by the indicated rating service. These ratings have been
provided by the Evaluator, but not confirmed with the rating
agencies.
(2) See Notes to Financial Statements.
(3) 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. The tax effect on Holders of redemptions and
related distributions is described under "Taxes" in this
Prospectus, Part B.
D - 7
<PAGE>
DEFINED ASSET FUNDS--
CORPORATE INCOME FUND
INTERMEDIATE TERM SERIES
I want to learn more about automatic reinvestment in the Investment Accumulation
Program. Please send me information about participation in the Corporate Fund
Accumulation Program, Inc. and a current Prospectus.
My name (please
print) _______________________________________________________________________
My address (please print):
Street and Apt.
No. __________________________________________________________________________
City, State, Zip
Code _________________________________________________________________________
This page is a self-mailer. Please complete the information above, cut along the
dotted line, fold along the lines on the reverse side, tape, and mail with the
Trustee's address displayed on the outside.
12345678
<PAGE>
BUSINESS REPLY MAIL NO POSTAGE
FIRST CLASS PERMIT NO. 1313 NEW YORK, NY NECESSARY
IF MAILED
POSTAGE WILL BE PAID BY ADDRESSEE IN THE
INVESTMENT ACCUMULATION PROGRAM (CIF) UNITED STATES
THE BANK OF NEW YORK
UNIT INVESTMENT TRUST DEPARTMENT
P.O. BOX 974
WALL STREET STATION
NEW YORK, NY 10268-0974
- --------------------------------------------------------------------------------
(Fold along this line.)
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(Fold along this line.)
<PAGE>
<PAGE>
DEFINED ASSET FUNDSSM
PROSPECTUS--PART B
CORPORATE INCOME FUND
CASH OR ACCRETION SERIES
INTERMEDIATE TERM SERIES
INSURED SERIES
MONTHLY PAYMENT SERIES
PREFERRED STOCK PUT SERIES
SELECT SERIES
THIS PART B OF THE PROSPECTUS MAY NOT BE DISTRIBUTED UNLESS ACCOMPANIED OR
PRECEDED BY PART A.
FURTHER INFORMATION REGARDING THE FUND MAY BE OBTAINED
WITHIN FIVE DAYS BY WRITING OR CALLING THE TRUSTEE, AT THE ADDRESS AND
TELEPHONE NUMBER SET FORTH ON THE BACK COVER OF PART A OF THIS PROSPECTUS.
Index
PAGE
----
Fund Description........................... 1
Risk Factors............................... 2
How to Buy Units........................... 6
How to Redeem or Sell Units................ 7
Income, Distributions and Reinvestment..... 8
Fund Expenses.............................. 10
Taxes...................................... 10
PAGE
----
Records and Reports........................ 12
Trust Indenture............................ 13
Miscellaneous.............................. 13
Exchange Option............................ 15
Supplemental Information................... 15
Appendix A--Description of Ratings......... a-1
Appendix B--Sales Charge Schedules......... b-1
FUND DESCRIPTION
BOND PORTFOLIO SELECTION
Professional buyers for Defined Asset Funds, with access to extensive
research, generally selected the Bonds for the Portfolio after considering the
Fund's investment objective as well as the quality of the Bonds (the Bonds were
initially rated in the category A or better by at least one nationally
recognized rating organization or had comparable credit characteristics), the
yield and price of the Bonds compared to similar securities, the maturities of
the Bonds and the diversification of the Portfolio. No leverage or borrowing is
used nor does the Portfolio contain other kinds of securities to enhance yield.
A summary of the Bonds in the Portfolio appears in Part A of the Prospectus.
(For Preferred Stock Put Series, see page 4.)
Yields on 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. Ratings represent opinions of the rating
organizations as to the quality of the bonds rated, based on the credit of the
issuer or any guarantor, insurer or other credit provider, but these ratings are
only general standards of quality (see Appendix A).
After the initial date of deposit, the ratings of some Bonds may be reduced
or withdrawn, or the credit characteristics of the Bonds may no longer be
comparable to bonds rated A or better. Bonds rated BBB or Baa (the lowest
investment grade rating) or lower may have speculative characteristics, and
changes in economic conditions or other circumstances are more likely to lead to
a weakened capacity to make principal and interest payments than is the case
with higher grade bonds. Bonds rated below investment grade or unrated bonds
with similar credit characteristics are often subject to greater market
fluctuations and risk of loss of principal and income than higher grade bonds
and their value may decline precipitously in response to rising interest rates.
1
<PAGE>
Because each Defined Asset Fund is a preselected portfolio of Bonds, you
know the securities, maturities, call dates and ratings before you invest. Of
course, the Portfolio will change somewhat over time as Bonds mature, are
redeemed or are sold to meet Unit redemptions or in other limited circumstances.
Because the Portfolio is not actively managed and principal is returned as the
Bonds are disposed of, this principal should be relatively unaffected by changes
in interest rates.
BOND PORTFOLIO SUPERVISION
The Fund follows a buy and hold investment strategy in contrast to the
frequent portfolio changes of a managed fund based on economic, financial and
market analyses. The Fund may retain an issuer's bonds despite adverse financial
developments. Experienced financial analysts regularly review the Portfolio and
a Bond may be sold in certain circumstances including the occurrence of a
default in payment or other default on the Bond, institution of certain legal
proceedings, if the Bond becomes inconsistent with the Fund's investment
objectives, a decline in the price of the Bond or the occurrence of other market
or credit factors that, in the opinion of the Sponsors, makes retention of the
Bond detrimental to the interests of investors. The Trustee must generally
reject any offer by an issuer of a Bond to exchange another security pursuant to
a refunding or refinancing plan. The Sponsors and the Trustee are not liable for
any default or defect in a Bond.
RISK FACTORS
An investment in the Fund entails certain risks, including the risk that the
value of your investment will decline with increases in interest rates.
Generally speaking, bonds with longer maturities will fluctuate in value more
than bonds with shorter maturities. In recent years there have been wide
fluctuations in interest rates and in the value of fixed-rate bonds generally.
The Sponsors cannot predict the direction or scope of any future fluctuations.
Certain of the Bonds may have been deposited at a market discount or premium
principally because their interest rates are lower or higher than prevailing
rates on comparable debt securities. The current returns of market discount
bonds are lower than comparably rated bonds selling at par because discount
bonds tend to increase in market value as they approach maturity. The current
returns of market premium bonds are higher than comparably rated bonds selling
at par because premium bonds tend to decrease in market value as they approach
maturity. Because part of the purchase price is returned through current income
payments and not at maturity, an early redemption at par of a premium bond will
result in a reduction in yield to the Fund. Market premium or discount
attributable to interest rate changes does not indicate market confidence or
lack of confidence in the issue.
The Fund may be concentrated in one or more of types of bonds. Set forth
below is a brief description of certain risks associated with bonds which may be
held by the Fund. Additional information is contained in the Information
Supplement which is available from the Trustee at no charge to the investor.
UTILITIES
Payments on utility bonds are dependent on various factors, including the
rates the utilities may charge, the demand for their services and their
operating costs, including expenses to comply with environmental legislation and
other energy and licensing laws and regulations. Utilities are particularly
sensitive to, among other things, the effects of inflation on operating and
construction costs, the unpredictability of future usage requirements, the costs
and availability of fuel and, with certain electric utilities, the risks
associated with the nuclear industry. The movement to introduce competition in
the investor-owned electric utility industry is likely to induce them to
maintain rates as low as possible. In this effort to keep rates low, utilities
may have more trouble raising rates to completely recover investment in
generating plant.
HOSPITAL, MENTAL HEALTH AND NURSING HOME FACILITIES
Payments on hospital, mental health and nursing home facility bonds are
dependent upon revenues of hospitals and other health care providers. These
revenues come from private third-party payors and government programs, including
the Medicare and Medicaid programs, which have generally undertaken cost
containment measures to limit payments to health care providers. Hospitals must
also deal with shifting competition resulting from hospital mergers and
affiliations and the need to reduce costs as HMOs increase market penetration.
Nursing homes need to keep residential facilities for the elderly, which are not
reimbursable from
2
<PAGE>
Medicare/Medicaid, on a profitable basis. Hospital supply and drug companies
must deal with their need to raise prices in an environment where hospitals and
other health care providers are under intense pressure to keep their costs low.
Hospitals and health care facilities are subject to various legal claims by
patients and others and are adversely affected by increasing cost of insurance.
BANKS AND OTHER FINANCIAL INSTITUTIONS
The profitability of a financial institution is largely dependent upon the
credit quality of its loan portfolio which, in turn, is affected by the
institution's underwriting criteria, concentrations within the portfolio and
specific industry and general economic conditions. The operating performance of
financial institutions is also impacted by changes in interest rates, the
availability and cost of funds, the intensity of competition and the degree of
governmental regulation.
TELECOMMUNICATIONS
Payments on bonds of companies in the telecommunications industry, including
local, long-distance and cellular service, the manufacture of telecommunications
equipment, and a wide range of other activities including directory publishing,
information systems and the operation of voice, data and video
telecommunications are generally dependant upon the amount and growth of
customer demand, the level of rates permitted to be charged by regulatory
authorities and the effects of inflation on the cost of providing services and
the rate of technological innovation. The industry is characterized by
increasing competition in all sectors and extensive regulation by the Federal
Communications Commission and various state regulatory authorities.
FOREIGN OBLIGORS
On the basis of the best information available to the Sponsors, except as
indicated in Prospectus Part A, under existing law there are no withholding
taxes applicable to any foreign Securities in the Portfolio. Issues of foreign
obligors may involve investment risks that are different from those of domestic
issues, including currency rate fluctuations, future political and economic
developments and the possible imposition of withholding taxes, exchange controls
or other foreign governmental restrictions which might adversely affect the
Fund.
INSURANCE COMPANIES
Insurance companies are subject to extensive regulation and supervision
where they do business by state insurance commissioners who regulate the
standards of solvency which must be maintained, the nature of and limitations on
investments, reports of financial condition, and requirements regarding reserves
for unearned premiums, losses and other matters. A significant portion of the
assets of insurance companies are required by law to be held in reserve against
potential claims on policies and is not available to general creditors. Although
the federal government does not regulate the business of insurance, federal
initiatives including pension regulation, controls on medical care costs,
minimum standards for no-fault automobile insurance, national health insurance,
tax law changes affecting life insurance companies and repeal of the antitrust
exemption for the insurance business can significantly impact the insurance
business.
Insured Series--Portfolio Insurance. The Fund has obtained portfolio
insurance ('Portfolio Insurance') from either MBIA Insurance Corporation or
Financial Security Assurance Inc. (each referred to as an 'Insurer' or the
'Insurers') (see The Insurers below) that guarantees the scheduled payments of
the principal of and interest on the Bonds ('Portfolio-Insured Bonds') while
they are owned by the Fund, but does not guarantee the market value of the Bonds
or the value of the Units. Although all Bonds are individually insured, neither
the Fund, the Units nor the Portfolio are insured directly.
Since Portfolio Insurance applies to the Bonds only while they are owned by
the Fund, the value of Portfolio-Insured Bonds (and therefore the value of the
Units) may decline if the credit quality of any Portfolio-Insured Bond is
reduced. Premiums for Portfolio Insurance are payable monthly in advance by the
Trustee on behalf of the Fund. Upon the sale of a Portfolio-Insured Bond from
the Fund, the Trustee has the right, pursuant to an irrevocable commitment
obtained from the Insurer, to obtain insurance to maturity ('Permanent
Insurance') on the Bond upon the payment of a single, predetermined insurance
premium from the proceeds of the sale. Accordingly, any Bond in the Fund is
eligible to be sold on an insured basis. The Public Offering Price does not
reflect any element of value for Portfolio Insurance. The Evaluator will
attribute a value to the Portfolio Insurance (including the right to obtain
Permanent Insurance) for the purpose of computing the price or
3
<PAGE>
redemption value of Units only if the Portfolio-Insured Bonds are in default in
the payment of principal or interest or, in the opinion of Defined Asset Funds
research analysts, in significant risk of default.
The Insurers. The claims-paying ability of each Insurer is rated AAA by
Standard & Poor's. Ratings of insurance companies are subject to change at any
time at the discretion of the rating agency. In the event that the rating of an
Insurer is reduced, the Sponsors are authorized to direct the Trustee to obtain
other insurance on behalf of the Fund.
The following summary information relating to the listed insurance companies
has been obtained from publicly available information:
<TABLE><CAPTION>
FINANCIAL INFORMATION
AS OF DECEMBER 31, 1996
(IN MILLIONS OF DOLLARS)
---------------------------------
DATE ADMITTED POLICYHOLDERS'
NAME ESTABLISHED ASSETS SURPLUS
------------------------------------------ ------------- ------------ -----------------
<S> <C> <C> <C>
Financial Security Assurance Inc. (FSA)
(including Financial Security Assurance
of Maryland Inc. (FSAM) (formerly
Capital Guaranty Insurance Company)..... 1984 $ 1,155 $ 449
MBIA Insurance Corporation................ 1986 4,189 1,467
</TABLE>
CASH OR ACCRETION BOND SERIES AND SELECT SERIES
The Bonds in these Funds are Compound Interest Bonds that initially do not
pay interest. Instead, these Bonds accrue interest until a certain date (the
Payment Commencement Date). Prior to that date, the accrued but unpaid interest
on each Compound Interest Bond is added to principal and compounded, and
additional Units of the Fund are issued and added to the investor's account on
the quarterly or semi-annual Unit Accretion Distribution Days stated in Part A
of the Prospectus. Investors may elect automatic unit accretion distributions
which will return to them cash substantially equivalent to the accrued but
unpaid interest on the Compound Interest Bonds. Notice of your election to have
unit accretion distributions liquidated must be received by the Trustee at least
ten days prior to the first Record Day for Unit Accretion Distribution as to
which your election will apply. Compound Interest Bonds are treated for federal
income tax purposes as having original issue discount, and investors must report
as taxable income each year a portion of the original issue discount prior to
receiving the cash attributable to that income (see Taxes in Part A of the
Prospectus). In addition, the value of the Compound Interest Bonds and of the
Units may be subject to greater fluctuations in response to changing interest
rates than bonds that make current interest payments.
The Compound Interest Bonds are backed by collateral primarily composed of
mortgage-backed securities guaranteed as to payment of interest and principal by
U.S. government agencies, including the Government National Mortgage Association
(GNMA), the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal
National Mortgage Association (FNMA). The issuers of the Compound Interest Bonds
are generally limited purpose corporations organized solely to issue the Bonds.
PREFERRED STOCK PUT SERIES
Preferred stocks present less risk than common stocks since dividends must
be paid before holders of common stock of that issuer may receive a dividend.
Preferred stocks do not, however, represent a liability of the issuer and
therefore do not offer as great a degree of protection of capital or assurance
of continued income as corporate bonds.
The preferred stocks in the Fund were acquired from a savings bank, savings
and loan association or insurance company (the Seller) that had held the
preferred stocks in its portfolio prior to sale to the Sponsors (see Banks and
Other Financial Institutions above). In order to provide liquidity, the Seller
has committed to repurchase any of the preferred stocks on any annual or
semi-annual Purchase Date (as stated in Part A of the Prospectus) (a Liquidity
Purchase). The Seller will also repurchase any preferred stocks if the issuer
fails to make any sinking fund or other redemption payments or fails to declare
and pay a dividend at the prescribed dividend rate (a Default Purchase) or if
the Seller becomes or is deemed to be bankrupt or insolvent (an Insolvency
Purchase). Investors should realize that they may have all or part of the
principal amount of their investment in Units returned prior to termination of
the Fund if any of these situations occurs. For certain Funds, the Seller will
4
<PAGE>
also purchase all the preferred stocks remaining in the Fund on a Final
Disposition Date, as stated in Part A of the Prospectus (a Disposition
Purchase). For certain Funds, these purchase commitments may be backed by
collateral which may include mortgage-backed securities, municipal and corporate
bonds, U.S. government securities and cash.
LITIGATION AND LEGISLATION
The Sponsors do not know of any pending litigation as of the date of this
Prospectus which might reasonably be expected to have a material adverse effect
upon the Fund. At any time litigation may be initiated on a variety of grounds,
or legislation may be enacted, affecting the Bonds in the Fund. In addition,
there can be no assurance that foreign withholding taxes will not be imposed on
interest on Bonds issued by non-U.S. issuers in the future.
PAYMENT OF SECURITIES AND LIFE OF THE FUND
The size and composition of the Portfolio will change over time. Certain of
the Bonds may be subject to redemption prior to their stated maturity dates
pursuant to optional refunding or sinking fund redemption provisions or
otherwise. In general, optional refunding redemption provisions are more likely
to be exercised when the value of a Bond is at a premium over par than when it
is at a discount from par. Some Bonds may be subject to sinking fund and
extraordinary redemption provisions which may commence early in the life of the
Fund. Additionally, the size and composition of the Fund will be affected by the
level of redemptions of Units that may occur from time to time. Principally,
this will depend upon the number of investors seeking to sell or redeem their
Units and whether or not the Sponsors are able to sell the Units acquired by
them in the secondary market. As a result, Units offered in the secondary market
may not represent the same face amount of Bonds as on the initial date of
deposit. Factors that the Sponsors will consider in determining whether or not
to sell Units acquired in the secondary market include the diversity of the
Portfolio, the size of the Fund relative to its original size, the ratio of Fund
expenses to income, the Fund's current and long-term returns, the degree to
which Units may be selling at a premium over par and the cost of maintaining a
current prospectus for the Fund. These factors may also lead the Sponsors to
seek to terminate the Fund earlier than its mandatory termination date.
Cash or Accretion Bond Series and Select Series. As periodic payments of
interest and principal and any prepayments of principal are made on the Ginnie
Maes, Freddie Macs and Fannie Maes (the Collateral) backing the Compound
Interest Bonds, all or a portion of the amounts received will be used first to
make principal and interest payments on other bonds issued by the issuers of the
Compound Interest Bonds, until those bonds are fully paid, and then to make
principal and interest payments on the Compound Interest Bonds. Therefore, the
prepayment rates on the mortgages underlying the Collateral will affect the
principal amount of the Compound Interest Bonds in the Fund and the ultimate
life of the Fund.
All of the mortgages in the pools relating to the Collateral are subject to
prepayment without any significant premium or penalty at the option of the
mortgagors (i.e., the homeowners). While the mortgages underlying the Collateral
may be amortized over a period from 30 to 15 years, it has been the experience
of the mortgage industry that the average life of comparable mortgages, owing to
prepayments, is much less, perhaps as little as nine and six years,
respectively. Generally speaking, a number of factors, including mortgage market
interest rates and homeowners' mobility, will affect the average life of the
Collateral. Changes in prepayment patterns which are influenced by changes in
housing cycles and mortgage refinancing could influence yield assumptions used
in pricing the securities.
While the value of these mortgage backed securities generally fluctuates
inversely with changes in interest rates, it should be noted that their
potential for appreciation, which could otherwise be expected to result from a
decline in interest rates, may tend to be limited by any increased prepayments
by mortgagors as interest rates decline. Accordingly, the termination of the
Fund might be accelerated as a result of prepayments made as described above.
Early termination of a Fund or early payments of principal may have
important consequences to the investor; e.g., to the extent that Units were
purchased with a view to an investment of longer duration, the overall
investment program of the investor may require readjustment; or the overall
return on investment may be less or greater than anticipated, depending in part
on whether the purchase price paid for Units represented the payment of an
overall premium or a discount, respectively, above or below the stated principal
amounts of the underlying mortgages.
5
<PAGE>
FUND TERMINATION
The Fund will be terminated no later than the mandatory termination date
specified in Part A of the Prospectus. It will terminate earlier upon the
disposition of the last Bond or upon the consent of investors holding 51% of the
Units. The Fund may also be terminated earlier by the Sponsors once the total
assets of the Fund have fallen below the minimum value specified in Part A of
the Prospectus. A decision by the Sponsors to terminate the Fund early will be
based on factors similar to those considered by the Sponsors in determining
whether to continue the sale of Units in the secondary market.
Notice of impending termination will be provided to investors and thereafter
Units will no longer be redeemable. On or shortly before termination, the Fund
will seek to dispose of any Bonds remaining in the Portfolio although any Bond
unable to be sold at a reasonable price may continue to be held by the Trustee
in a liquidating trust pending its final disposition. A proportional share of
the expenses associated with termination, including brokerage costs in disposing
of Bonds, will be borne by investors remaining at that time. This may have the
effect of reducing the amount of proceeds those investors are to receive in any
final distribution.
LIQUIDITY
Up to 40% of the value of the Portfolio may consist of Bonds acquired in
private placements or otherwise that may constitute restricted securities that
cannot be sold publicly by the Trustee without registration under the Securities
Act of 1933, as amended. The Sponsors nevertheless believe that, should a sale
of these Bonds be necessary in order to meet redemption of Units, the Trustee
should be able to consummate a sale with institutional investors.
The principal trading market for the Bonds will generally be in the
over-the-counter market and the existence of a liquid trading market for the
Bonds may depend on whether dealers will make a market in them. There can be no
assurance that a liquid trading market will exist for any of the Bonds,
especially since the Fund may be restricted under the Investment Company Act of
1940 from selling Bonds to any Sponsor. The value of the Portfolio will be
adversely affected if trading markets for the Bonds are limited or absent.
HOW TO BUY UNITS
PUBLIC OFFERING PRICE
Units are available from any of the Sponsors, Underwriters and other
broker-dealers at the Public Offering Price plus accrued interest on the Units.
The Public Offering Price varies each Business Day with changes in the value of
the Portfolio and other assets and liabilities of the Fund.
Net accrued interest and principal cash, if any, is added to the Public
Offering Price, the Sponsors' Repurchase Price and the Redemption Price per
Unit. This represents the interest accrued on the Bonds, net of Fund expenses,
from the initial date of purchase of Units to, but not including, the settlement
date for Units (less any prior distributions of interest income to investors).
Because of varying interest payment dates on the Bonds, accrued interest at any
time will exceed the interest actually received by the Fund.
FOR FUNDS WITHOUT A DEFERRED SALES CHARGE:
In the secondary market (after the initial offering period), the Public
Offering Price is generally based on the bid side evaluation of the Bonds and
includes a sales charge based on the number of Units of the Fund purchased in
the secondary market on the same day by a single purchaser (see Secondary Market
sales charge schedule in Appendix B). Purchases in the secondary market of one
or more Series sponsored by the Sponsors that have the same rates of sales
charge may be aggregated. To qualify for a reduced sales charge, the dealer must
confirm that the sale is to a single purchaser or is purchased for its own
account and not for distribution. For these purposes, Units held in the name of
the purchaser's spouse or child under 21 years of age are deemed to be purchased
by a single purchaser. A trustee or other fiduciary purchasing securities for a
single trust estate or single fiduciary account is also considered a single
purchaser. This procedure may be amended or terminated at any time without
notice. Employees of certain Sponsors and Sponsor affiliates may purchase Units
at prices including a sales charge of not less than $5 per Unit (or 1,000 Units,
as the case may be).
For Preferred Stock Put Series there is no sales charge and the Public
Offering Price is based on the offer side evaluation of the preferred stocks.
6
<PAGE>
FOR FUNDS WITH A DEFERRED SALES CHARGE:
In the secondary market (after the initial offering period), the Public
Offering Price (and the Sponsors' Repurchase Price and the Redemption Price) is
based on the lower, bid side evaluation of the Bonds. The Fund does not have an
up-front sales charge in the initial offering period until after the deduction
of the first quarterly Deferred Sales Charge installment which will commence on
the date indicated in Part A of this Prospectus. Units redeemed or repurchased
prior to the accrual of the final Deferred Sales Charge installment will have
the amount of any remaining installments deducted from the redemption or
repurchase proceeds, although this deduction will be waived in the event of the
death or disability (as defined in the Internal Revenue Code of 1986) of an
investor. Units purchased after the deduction of the first Deferred Sales Charge
installment will be charged the up-front per Unit sales charge indicated in Part
A of this Prospectus based on the Public Offering Price (less the value of the
short-term securities reserved to pay the deferred sales charge not yet
accrued), multiplied by the number of Deferred Sales Charge installments already
deducted. Units purchased after the deduction of the final Deferred Sales Charge
installment will be subject only to an up-front sales charge as set forth in
Appendix B.
EVALUATIONS
Evaluations are determined by the independent Evaluator on each Business
Day. This excludes Saturdays, Sundays and the following holidays as observed by
the New York Stock Exchange: New Year's Day, Presidents' Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas. For Cash
or Accretion Bond Series and Select Series, the following Federal holidays are
also not Business Days: Columbus Day, Veteran's Day and Martin Luther King's
birthday. Bond evaluations are based on closing sales prices (unless the
Evaluator deems these prices inappropriate). If closing sales prices are not
available, the evaluation is generally determined on the basis of current bid or
offer prices for the Bonds or comparable securities or by appraisal or by any
combination of these methods. In the past, the bid prices of publicly offered
issues have been lower than the offer prices by as much as 1 1/2 or more of face
amount in the case of inactively traded issues and as little as 1/4 of 1% in
the case of actively traded issues, but the difference between the offer and bid
prices has averaged between 1/2 of 1% and 1% of face amount. Neither the
Sponsors, the Trustee or the Evaluator will be liable for errors in the
Evaluator's judgment. The fees of the Evaluator will be borne by the Fund.
CERTIFICATES
Certificates for Units are issued upon request and may be transferred by
paying any taxes or governmental charges and by complying with the requirements
for redeeming Certificates (see How To Redeem or Sell Units-- Redeeming Units
with the Trustee). Certain Sponsors collect additional charges for registering
and shipping Certificates to purchasers. Lost or mutilated Certificates can be
replaced upon delivery of satisfactory indemnity and payment of costs.
HOW TO REDEEM OR SELL UNITS
You can redeem your Units at any time for net asset value. In addition, the
Sponsors have maintained an uninterrupted secondary market for Units for over 20
years and will ordinarily buy back Units at net asset value. The following
describes these two methods to redeem or sell Units in greater detail.
REDEEMING UNITS WITH THE TRUSTEE
You can always redeem your Units directly with the Trustee for net asset
value. This can be done by sending the Trustee a redemption request together
with any Unit certificates you hold, which must be properly endorsed or
accompanied by a written transfer instrument with signatures guaranteed by an
eligible institution. In certain instances, additional documents may be required
such as a trust instrument, certificate of corporate authority, certificate of
death or appointment as executor, administrator or guardian.
Within seven days after the Trustee's receipt of your request containing the
necessary documents, a check will be mailed to you in an amount equal to the net
asset value of your Units. Because of the sales charge, market movements or
changes in the Portfolio, net asset value at the time you redeem your Units may
be greater or less than the original cost of your Units. Net asset value is
calculated each Business Day by adding the value of the Bonds, net accrued
interest, cash and the value of any other Fund assets; deducting unpaid taxes or
other governmental charges, accrued but unpaid Fund expenses and any remaining
deferred sales charges,
7
<PAGE>
unreimbursed Trustee advances, cash held to redeem Units or for distribution to
investors and the value of any other Fund liabilities; and dividing the result
by the number of outstanding Units. Bonds are evaluated on the offer side during
the initial offering period and on the bid side thereafter.
As long as the Sponsors are maintaining a secondary market for Units (as
described below), the Trustee will not actually redeem your Units but will sell
them to the Sponsors for net asset value. If the Sponsors are not maintaining a
secondary market, the Trustee will redeem your Units for net asset value or will
sell your Units in the over-the-counter market if the Trustee believes it will
obtain a higher net price for your Units. If the Trustee is able to sell the
Units for a net price higher than net asset value, you will receive the net
proceeds of the sale.
If cash is not available in the Fund's Income and Capital Accounts to pay
redemptions, the Trustee may sell Bonds selected by the Agent for the Sponsors
based on market and credit factors determined to be in the best interest of the
Fund. These sales are often made at times when the Bonds would not otherwise be
sold and may result in lower prices than might be realized otherwise and may
also reduce the size and diversity of the Fund. If Bonds are being sold during a
time when additional Units are being created by the purchase of additional Bonds
(as described under Portfolio Selection), Bonds will be sold in a manner
designed to maintain, to the extent practicable, the proportionate relationship
among the face amounts of each Bond in the Portfolio.
Redemptions may be suspended or payment postponed (i) if the New York Stock
Exchange is closed (other than customary weekend and holiday closings), (ii) if
the SEC determines that trading on the New York Stock Exchange is restricted or
that an emergency exists making disposal or evaluation of the Bonds not
reasonably practicable or (iii) for any other period permitted by SEC order.
SPONSORS' SECONDARY MARKET FOR UNITS
The Sponsors, while not obligated to do so, will buy back Units at net asset
value without any other fee or charge as long as they are maintaining a
secondary market for Units. Because of the sales charge, market movements or
changes in the portfolio, net asset value at the time you sell your Units may be
greater or less than the original cost of your Units. The Sponsors may resell
the Units to other buyers or redeem the Units by tendering them 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 for Units.
The Sponsors may discontinue the secondary market for Units without prior
notice if the supply of Units exceeds demand or for other business reasons.
Regardless of whether the Sponsors maintain a secondary market, you have the
right to redeem your Units for net asset value with the Trustee at any time, as
described above.
INCOME, DISTRIBUTIONS AND REINVESTMENT
INCOME
Interest or dividends received are credited to an Income Account and other
receipts to a Capital Account. A Reserve Account may be created by withdrawing
from the Income and Capital Accounts amounts considered appropriate by the
Trustee to reserve for any material amount that may be payable out of the Fund.
RETURN CALCULATIONS
Estimated Current Return shows the estimated annual cash to be received from
interest-bearing Bonds in the Portfolio (net of estimated annual expenses)
divided by the Public Offering Price (including the maximum sales charge).
Estimated Long Term Return is a measure of the estimated return over the
estimated life of the Fund. This represents 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 maximum sales charge and estimated expenses.
The average yield for the Portfolio is derived by weighing each Bond's yield by
its market value and the time remaining to the call or maturity date, depending
on how the Bond is priced. Unlike Estimated Current Return, Estimated Long Term
Return takes into account maturities, discounts and premiums of the underlying
Bonds.
No return estimate can be predictive of your actual return because returns
will vary with purchase price (including sales charges), how long Units are
held, changes in Portfolio composition, changes in interest income and changes
in fees and expenses. Therefore, Estimated Current Return and Estimated Long
Term Return are designed to be comparative rather than predictive. A yield
calculation which is more comparable to an individual
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bond may be higher or lower than Estimated Current Return or Estimated Long Term
Return which are more comparable to return calculations used by other investment
products.
ESTIMATED RATE TO PROJECTED TO MATURITY (CASH OR ACCRETION BONDS SERIES AND
SELECT SERIES). Estimated Rate to Projected Maturity of the Compound Interest
Bonds is calculated assuming that the mortgages underlying the Ginnie Mae,
Fannie Mae or Freddie Mac collateral for the Compound Interest Bonds are prepaid
at a certain percentage of a standard prepayment model, that payment on any
Compound Interest Bond is not accelerated due to the default of an issuer, that
the principal amount of the interest-bearing Bonds included in the Portfolio is
distributed when it matures, that interest received on the interest-bearing
Bonds will precisely cover the expenses of the Fund, that investors do not
redeem or sell any Units (including new Units credited in respect of the
aggregate increase in Accreted Principal Amount of the Compound Interest Bonds)
prior to projected maturity of the Fund. If the mortgages underlying the Ginnie
Mae, Fannie Mae or Freddie Mac collateral prepay more slowly than the specified
assumed rates of the prepayment model, the actual return will be less.
PREFERRED STOCK PUT SERIES. Estimated Current Return shows the anticipated
net annual income rate times the face amount or par or stated value of the
preferred stock, divided by the Public Offering Price. The estimated net annual
income rate per Unit shows the percentage return based on the face amount or par
or stated value per Unit after deducting estimated annual fees and expenses.
Estimated After-Tax Return assumes that investors are taxed at the highest
current corporate tax rate and that all dividends distributed to investors will
be eligible for the dividends-received deduction for corporations, and is
determined without regard to any capital gains that may be distributed to
investors.
DISTRIBUTIONS
Each Unit receives an equal share of any distributions of income net of
estimated expenses. Interest on the Bonds is generally received by the Fund on a
semi-annual or annual basis; dividends on the preferred stocks are usually paid
quarterly. Because interest and dividends are not received at a constant rate
throughout the year, any Income Distribution may be more or less than the income
actually received. To eliminate fluctuations in the Income Distribution, the
Trustee will advance amounts necessary to provide approximately equal
distributions; it will be reimbursed, without interest, from income received on
the Bonds or preferred stocks, as the case may be, but the Trustee is
compensated, in part, by holding the Fund's cash balances in non-interest
bearing accounts. Along with the Income Distributions, the Trustee will
distribute the investor's pro rata share of any principal received from any
disposition of a Bond to the extent available for distribution.
The estimated annual income per Unit, after deducting estimated annual Fund
expenses as stated in Part A of the Prospectus, will change as Bonds mature, are
called or sold or otherwise disposed of, as replacement bonds are deposited and
as Fund expenses change. Because the Portfolio is not actively managed, income
distributions will generally not be affected by changes in interest rates.
Depending on the financial conditions of the issuers of the Bonds, the amount of
income should be substantially maintained as long as the Portfolio remains
unchanged; however, optional bond redemptions or other Portfolio changes may
occur more frequently when interest rates decline, which would result in early
returns of principal and possibly earlier termination of the Fund.
REINVESTMENT
Distributions will be paid in cash unless the investor elects to have
distributions reinvested without sales charge in The Corporate Fund Accumulation
Program, Inc., which is available to investors in certain Series. The Program is
an open-end management investment company whose investment objective is to
obtain a high level of current income by investing in a diversified portfolio
consisting primarily of long-term corporate bonds rated A or better or with
comparable credit characteristics. It should be noted, however, that interest
distributions to foreign investors from this Program will be subject to U.S.
Federal income taxes, including withholding taxes. Investors participating in
the Program will be taxed on their reinvested distributions in the manner
described in Taxes even though distributions are automatically reinvested. For
more complete information about the Program, including charges and expenses,
request the Program's prospectus from the Trustee. Read it carefully before you
decide to participate. Written notice of election to participate must be
received by the Trustee at least ten days before the Record Day for the first
distribution to which the election is to apply. REINVESTMENT IS NOT AVAILABLE TO
INVESTORS IN CASH OR ACCRETION BOND SERIES, PREFERRED STOCK PUT SERIES OR SELECT
SERIES.
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FUND EXPENSES
Estimated annual Fund expenses are listed in Part A of the Prospectus; if
actual expenses exceed the estimate, the excess will be borne by the Fund. The
Trustee's fee shown in Part A of this Prospectus assumes that the Fund will
reach a size estimated by the Sponsors and is based on a sliding fee scale that
reduces the Trustee's fee as the size of the Fund increases. The Trustee's
annual fee is payable in monthly installments. The Trustee also benefits when it
holds cash for the Fund in non-interest bearing accounts. Possible additional
charges include Trustee fees and expenses for maintaining the Fund's
registration statement current with Federal and State authorities, extraordinary
services, costs of indemnifying the Trustee and the Sponsors, costs of action
taken to protect the Fund and other legal fees and expenses, Fund termination
expenses and any governmental charges. The Trustee has a lien on Fund assets to
secure reimbursement of these amounts and may sell Bonds for this purpose if
cash is not available. The Sponsors receive an annual fee currently estimated at
$0.35 per $1,000 face amount to reimburse them for the cost of providing
Portfolio supervisory services to the Fund. While the fee may exceed their costs
of providing these services to the Fund, the total supervision fees from all
Series of Corporate Income Fund will not exceed their costs for these services
to all of those Series during any calendar year. The Sponsors may also be
reimbursed for their costs of providing bookkeeping and administrative services
to Defined Asset Funds. The Trustee's, Sponsors' and Evaluator's fees may be
adjusted for inflation without investors' approval.
All or a portion of expenses incurred in establishing certain Funds, as
shown in Part A of the Prospectus, including the cost of the initial preparation
of documents relating to the Fund, Federal and State registration fees, the
initial fees and expenses of the Trustee, legal expenses and any other
out-of-pocket expenses will be paid by the Fund and amortized over five years.
Advertising and selling expenses will be paid from the Underwriting Account at
no charge to the Fund. Sales charges on Defined Asset Funds range from under
1.0% to 5.5%. This may be less than you might pay to buy and hold a comparable
managed fund. Defined Asset Funds can be a cost-effective way to purchase and
hold investments. Annual operating expenses are generally lower than for managed
funds. Because Defined Asset Funds have no management fees, limited transaction
costs and no ongoing marketing expenses, operating expenses are generally less
than 0.25% a year. When compounded annually, small differences in expense ratios
can make a big difference in your investment results.
TAXES--For all Funds except Preferred Stock Put Series and Monthly Payment
Series that are structured as regulated investment companies, as specified in
Part A of the Prospectus.
The following summary describes some of the important income tax
consequences of holding Units, assuming that the investor is not a dealer,
financial institution or insurance company or other investor with special
circumstances. Investors should consult their tax advisers about an investment
in the Fund.
The Sponsors believe that individual investors will not be subject to any
state or local personal income taxes on the interest received by the Fund and
distributed to them. However, investors (including individuals) may be subject
to state and local taxes on any capital gains (or 'market discount' treated as
ordinary income) and to other state and local taxes (including corporate income
or franchise taxes, personal property or intangibles taxes, and estate or
inheritance taxes) on their Units or the income derived therefrom. In addition,
individual investors (and any other investors which are not subject to state and
local taxes on the interest income derived from the Fund) will probably not be
entitled to a deduction for state and local tax purposes for their share of the
fees and expenses paid by the Fund, for any amortized bond premium or for any
interest on money borrowed to purchase their Units. Investors should consult
their tax advisers regarding the state and local taxes that may result from an
investment in the Fund.
After the end of each calendar year, the Trustee will furnish to each
investor an annual statement containing information relating to the interest
received and 'original issue discount' accrued by the Fund on the Securities,
the gross proceeds received by the Fund from the disposition of any Security,
and the fees and expenses paid by the Fund. The Trustee will also furnish annual
information returns to each investor and to the Internal Revenue Service.
In the opinion of Davis Polk & Wardwell, special counsel for the Sponsors,
under existing law:
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GENERAL TREATMENT OF THE FUND
The fund will not be taxed as a corporation for federal income tax purposes
or for New York State or City purposes, and each investor will be considered to
own directly a share of each Security in the Fund. Each investor will be
considered to have received the interest (and accrued the original issue
discount, if any) on his pro rata portion of each Security when interest is
received (or original issue discount is accrued) by the Fund regardless of
whether the interest is automatically reinvested in the Fund or used to pay Fund
expenses.
INCOME OR LOSS UPON DISPOSITION
Upon a disposition of all or part of an investor's pro rata portion of a
Security (by sale, exchange or redemption of the Security or his Units), an
investor will generally recognize capital gain or loss. However, gain from the
disposition will generally be ordinary income to the extent of any accrued
market discount. An investor will generally have market discount to the extent
that his basis in a Security when he purchases a Unit is less than its stated
redemption price at maturity (or, in the case of a Security issued with original
issue discount, the issue price increased by original issue discount that has
accrued to previous holders). Investors should consult their tax advisers in
this regard.
The excess of a non-corporate investor's net long-term capital gains over
his net short-term capital losses may be subject to tax at a lower rate than
ordinary income. A capital gain or loss is long-term if the investment is held
for more than one year and short-term if held for one year or less. Because the
deduction of capital losses is subject to limitations, an investor may not be
able to deduct all of his capital losses.
INVESTOR'S BASIS IN THE SECURITIES
An investor's aggregate basis in the Securities will be equal to the cost of his
Units, including any sales charges and the organizational expenses borne by the
investor but excluding any amount paid for accrued interest, and adjusted to
reflect any accruals of 'original issue discount', 'acquisition premium' and
'bond premium'. Investors should consult their tax advisers in this regard.
ORIGINAL ISSUE DISCOUNT, ACQUISITION PREMIUM AND BOND PREMIUM
Original issue discount accrues in accordance with a constant yield method
based on a compounding of interest and is generally equal to the excess of a
Security's maturity price over its original issue price. Original issue discount
inclusions are reduced by accruals of acquisition premium. An investor will have
acquisition premium to the extent his basis in a Security when he purchases a
Unit is less than the maturity price but more than the issue price increased by
any original issue discount that has accrued to previous holders.
Generally, bond premium accruals on a bond will be based upon the excess of
an investor's basis in the Security at the time of purchasing a Unit over its
maturity price. If an investor has elected to amortize bond premium, which is an
election that applies to all debt obligations of an investor and that can be
revoked only with consent of the Internal Revenue Service, the amount amortized
offsets the investor's interest from the Security and reduces the investor's
basis. Investors should consult their tax advisers in this regard.
EXPENSES
An individual investor who itemizes deductions may deduct his pro rata share
of current ongoing Fund expenses only to the extent that such amount, together
with the investor's other miscellaneous deductions, exceeds 2% of his adjusted
gross income.
FOREIGN INVESTORS
An investor that is a non-resident alien individual or a foreign corporation
not engaged in a U.S. trade or business would generally not be subject to U.S.
federal income taxes, including withholding taxes, with respect to an investment
in the Fund if certain requirements are met, including the certification of
foreign status and other matters. However, such an investor will generally be
subject to 30% U.S. withholding tax on Securities issued before July 18, 1984,
subject to any applicable tax treaty. Because the Portfolio is comprised in part
of Securities issued prior to 1984, the Fund intends to withhold from foreign
investors 30% (or a lower applicable treaty rate) of the aggregate amount of
interest received by the Fund. For this reason, the Fund is not likely to be
suitable for foreign investors. Under certain circumstances, withholding agents
will file with the Internal Revenue Service
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foreign person information returns. Investors should consult their tax adivsers
with respect to United States federal income tax consequences of ownership of
Units, including any possible entitlement to refunds, credits or reduced tax
rates under any applicable tax treaty.
RETIREMENT PLANS--CASH AND ACCRETION BOND SERIES AND SELECT SERIES
These Series may be well suited for purchase by Individual Retirement
Accounts ('IRAs'), Keogh plans, pension funds and other qualified retirement
plans, certain of which are briefly described below. Generally, capital gains
and income received in each of the foregoing plans are exempt from Federal
taxation. All distributions from such plans are generally treated as ordinary
income but may, in some cases, be eligible for special 5 or 10 year averaging or
tax-deferred rollover treatment. Investors in IRAs, Keogh plans and other tax-
deferred retirement plans should consult their plan custodian as to the
appropriate disposition of distributions. Investors considering participation in
any of these plans should review specific tax laws related thereto and should
consult their attorneys or tax advisors with respect to the establishment and
maintenance of any of these plans. These plans are offered by brokerage firms,
including the Sponsor of this Fund, and other financial institutions. Fees and
charges with respect to such plans may vary.
Retirement Plans for the Self-Employed--Keogh Plans. Units of the Fund may
be purchased by retirement plans established for self-employed individuals,
partnerships or unincorporated companies ('Keogh plans'). The assets of a Keogh
plan must be held in a qualified trust or other arrangement which meets the
requirements of the Code. Keogh plan participants may also establish separate
IRAs (see below) to which they may contribute up to an additional $2,000 per
year ($4,000 in a spousal account).
Individual Retirement Account--IRA. Any individual can make use of a
qualified IRA arrangement for the purchase of Units of the Fund. Any individual
(including one covered by an employer retirement plan) can make a contribution
in an IRA equal to the lesser of $2,000 ($4,000 in a spousal account) or 100% of
earned income; such investment must be made in cash. However, the deductible
amount an individual covered by an employer retirement plan may contribute will
be reduced if the individual's adjusted gross income exceeds $25,000 (in the
case of a single individual), $40,000 (in the case of married individuals filing
a joint return) or $200 (in the case of a married individual filling a separate
return). Certain transactions which are prohibited under Section 408 of the Code
will cause all or a portion of the amount in an IRA to be deemed to be
distributed and subject to tax at that time. Unless nondeductible contributions
were made in 1987 or a later year, all distributions from an IRA will be treated
as ordinary income but generally are eligible for tax-deferred rollover
treatment. Taxable distributions made before attainment of age 59 1/2, except in
the case of the participant's death or disability or where the amount
distributed is part of a series of substantially equal periodic (at least
annual) payments that are to be made over the life expectancies of the
participant and his or her beneficiary, are generally subject to a surtax in an
amount equal to 10% of the distribution.
Corporate Pension and Profit-Sharing Plans. A pension or profit-sharing plan
for employees of a corporation may purchase Units of the Fund.
RECORDS AND REPORTS
The Trustee keeps a register of the names, addresses and holdings of all
investors. The Trustee also keeps records of the transactions of the Fund,
including a current list of the Bonds and a copy of the Indenture, and
supplemental information on the operations of the Fund and the risks associated
with the Bonds held by the Fund, which may be inspected by investors at
reasonable times during business hours.
With each distribution, the Trustee includes a statement of the interest and
any other receipts being distributed. Within five days after deposit of Bonds in
exchange or substitution for Bonds (or contracts) previously deposited, the
Trustee will send a notice to each investor, identifying both the Bonds removed
and the replacement bonds deposited. The Trustee sends each investor of record
an annual report summarizing transactions in the Fund's accounts and amounts
distributed during the year and Bonds held, the number of Units outstanding and
the Redemption Price at year end, the interest received by the Fund on the
Bonds, the gross proceeds received by the Fund from the disposition of any Bond
(resulting from redemption or payment at maturity or sale of any Bond), and the
fees and expenses paid by the Fund, among other matters. The Trustee will also
furnish annual information returns to each investor. Investors may obtain copies
of Bond evaluations from the Trustee to enable them to comply with federal and
state tax reporting requirements. Fund accounts are
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audited annually by independent accountants selected by the Sponsors. Audited
financial statements are available from the Trustee on request.
TRUST INDENTURE
The Fund is a 'unit investment trust' created under New York law by a Trust
Indenture among the Sponsors, the Trustee and the Evaluator. This Prospectus
summarizes various provisions of the Indenture, but each statement is qualified
in its entirety by reference to the Indenture.
The Indenture may be amended by the Sponsors and the Trustee without consent
by investors to cure ambiguities or to correct or supplement any defective or
inconsistent provision, to make any amendment required by the SEC or other
governmental agency or to make any other change not materially adverse to the
interest of investors (as determined in good faith by the Sponsors). The
Indenture may also generally be amended upon consent of investors holding 51% of
the Units. No amendment may reduce the interest of any investor in the Fund
without the investor's consent or reduce the percentage of Units required to
consent to any amendment without unanimous consent of investors. Investors will
be notified on the substance of any amendment.
The Trustee may resign upon notice to the Sponsors. It may be removed by
investors holding 51% of the Units at any time or by the Sponsors without the
consent of investors if it becomes incapable of acting or bankrupt, its affairs
are taken over by public authorities, or if under certain conditions the
Sponsors determine in good faith that its replacement is in the best interest of
the investors. The Evaluator may resign or be removed by the Sponsors and the
Trustee without the investors' consent. The resignation or removal of either
becomes effective upon acceptance of appointment by a successor; in this case,
the Sponsors will use their best efforts to appoint a successor promptly;
however, if upon resignation no successor has accepted appointment within 30
days after notification, the resigning Trustee or Evaluator may apply to a court
of competent jurisdiction to appoint a successor.
Any Sponsor may resign so long as one Sponsor with a net worth of $2,000,000
remains and is agreeable to the resignation. A new Sponsor may be appointed by
the remaining Sponsors and the Trustee to assume the duties of the resigning
Sponsor. If there is only one Sponsor and it fails to perform its duties or
becomes incapable of acting or bankrupt or its affairs are taken over by public
authorities, the Trustee may appoint a successor Sponsor at reasonable rates of
compensation, terminate the Indenture and liquidate the Fund or continue to act
as Trustee without a Sponsor. Merrill Lynch, Pierce, Fenner & Smith Incorporated
has been appointed as Agent for the Sponsors by the other Sponsors.
The Sponsors, the Trustee and the Evaluator are not liable to investors or
any other party for any act or omission in the conduct of their responsibilities
absent bad faith, willful misfeasance, negligence (gross negligence in the case
of a Sponsor or the Evaluator) or reckless disregard of duty. The Indenture
contains customary provisions limiting the liability of the Trustee.
MISCELLANEOUS
LEGAL OPINION
The legality of the Units has been passed upon by Davis Polk & Wardwell, 450
Lexington Avenue, New York, New York 10017, as special counsel for the Sponsors.
AUDITORS
The Statement of Condition was audited by Deloitte & Touche LLP, independent
accountants, as stated in their opinion. It is included in reliance upon that
opinion given on the authority of that firm as experts in accounting and
auditing.
TRUSTEE
The Trustee and its address are stated on the back cover of Part A of the
Prospectus. The Trustee is subject to supervision by the Federal Deposit
Insurance Corporation, the Board of Governors of the Federal Reserve System and
New York State banking authorities.
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SPONSORS
The Sponsors are listed on the back cover of Part A of the Prospectus. They
may include Merrill Lynch, Pierce, Fenner & Smith Incorporated, a wholly-owned
subsidiary of Merrill Lynch Co. Inc.; Smith Barney Inc., an indirect
wholly-owned subsidiary of The Travelers Inc.; Prudential Securities
Incorporated, an indirect wholly-owned subsidiary of the Prudential Insurance
Company of America; Dean Witter Reynolds, Inc., a principal operating subsidiary
of Morgan Stanley, Dean Witter, Discover & Co. and PaineWebber Incorporated, a
wholly-owned subsidiary of PaineWebber Group Inc. Each Sponsor, or one of its
predecessor corporations, has acted as Sponsor of a number of series of unit
investment trusts. Each Sponsor has acted as principal underwriter and managing
underwriter of other investment companies. The Sponsors, in addition to
participating as members of various selling groups or as agents of other
investment companies, execute orders on behalf of investment companies for the
purchase and sale of securities of these companies and sell securities to these
companies in their capacities as brokers or dealers in securities.
CODE OF ETHICS
The Agent for the Sponsors has adopted a code of ethics requiring
preclearance and reporting of personal securities transactions by its personnel
who have access to information on Defined Asset Funds portfolio transactions.
The code is intended to prevent any act, practice or course of conduct which
would operate as a fraud or deceit on any Fund and to provide guidance to these
persons regarding standards of conduct consistent with the Agent's
responsibilities to the Funds.
PUBLIC DISTRIBUTION
The Sponsors intend to qualify Units for sale in all states in which
qualification is deemed necessary through the Underwriting Account and by
dealers who are members of the National Association of Securities Dealers, Inc.
The Sponsors do not intend to qualify Units for sale in any foreign countries
and this Prospectus does not constitute an offer to sell Units in any country
where Units cannot lawfully be sold. Sales to dealers and to introducing
dealers, if any, will initially be made at prices which represent a concession
from the Public Offering Price, but the Agent for the Sponsors reserves the
right to change the rate of any concession from time to time. Any dealer or
introducing dealer may reallow a concession up to the concession to dealers.
UNDERWRITERS' AND SPONSORS' PROFITS
Upon sale of the Units, the Underwriters will be entitled to receive sales
charges. The Sponsors also realize a profit or loss on deposit of the Bonds
equal to the difference between the cost of the Bonds to the Fund (based on the
offer side evaluation on the initial date of deposit) and the Sponsors' cost of
the Bonds. In addition, a Sponsor or Underwriter may realize profits or sustain
losses on Bonds it deposits in the Fund which were acquired from underwriting
syndicates of which it was a member. During the initial offering period, the
Underwriting Account also may realize profits or sustain losses as a result of
fluctuations after the initial date of deposit in the Public Offering Price of
the Units. In maintaining a secondary market for Units, 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 these Units
(which include the sales charge) or the prices at which they redeem the Units.
Cash, if any, made available by buyers of Units to the Sponsors prior to a
settlement date for the purchase of Units may be used in the Sponsors'
businesses to the extent permitted by Rule 15c3-3 under the Securities Exchange
Act of 1934 and may be of benefit to the Sponsors. On Preferred Stock Put
Series, the Sponsors received an initial placement fee from the Seller and
receive an annual placement fee equal to a percentage of the price at which the
Seller has committed to purchase the preferred stocks (the Put Price).
FUND PERFORMANCE
Information on the performance of the Fund for various periods, on the basis
of changes in Unit price plus the amount of income and principal distributions
reinvested, may be included from time to time in advertisements, sales
literature, reports and other information furnished to current or prospective
investors. Total return figures are not averaged, and may not reflect deduction
of the sales charge, which would decrease the return. Average annualized return
figures reflect deduction of the maximum sales charge. No provision is made for
any income taxes payable.
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Past performance may not be indicative of future results. The Fund is not
actively managed. Unit price and return fluctuate with the value of the Bonds in
the Portfolio, so there may be a gain or loss when Units are sold.
Fund performance may be compared to performance data from publications such
as Lipper Analytical Services, Inc., Morningstar Publications, Inc., Money
Magazine, The New York Times, U.S. News and World Report, Barron's Business
Week, CDA Investment Technology, Inc., Forbes Magazine or Fortune Magazine. As
with other performance data, performance comparisons should not be considered
representative of the Fund's relative performance for any future period.
DEFINED ASSET FUNDS
For decades informed investors have purchased unit investment trusts for
dependability and professional selection of investments. Defined Asset Funds'
philosophy is to allow investors to 'buy with knowledge' (because, unlike
managed funds, the portfolio of municipal bonds and the return are relatively
fixed) and 'hold with confidence' (because the portfolio is professionally
selected and regularly reviewed). Defined Asset Funds offers an array of simple
and convenient investment choices, suited to fit a wide variety of personal
financial goals--a buy and hold strategy for capital accumulation, such as for
children's education or retirement, or attractive, regular current income
consistent with the preservation of principal. Unit investment trusts are
particularly suited for the many investors who prefer to seek long-term income
by purchasing sound investments and holding them, rather than through active
trading. Few individuals have the knowledge, resources or capital to buy and
hold a diversified portfolio on their own; it would generally take a
considerable sum of money to obtain the breadth and diversity that Defined Asset
Funds offer. Your investment objectives may call for a combination of Defined
Asset Funds.
One of the most important investment decisions you face may be how to
allocate your investments among asset classes. Diversification among different
kinds of investments can balance the risks and rewards of each one. Most
investment experts recommend stocks for long-term capital growth. Long-term
corporate bonds offer relatively high rates of interest income. By purchasing
both defined equity and defined bond funds, investors can receive attractive
current income, as well as growth potential, offering some protection against
inflation. From time to time various advertisements, sales literature, reports
and other information furnished to current or prospective investors may present
the average annual compounded rate of return of selected asset classes over
various periods of time, compared to the rate of inflation over the same
periods.
EXCHANGE OPTION
You may exchange Fund Units for units of certain other Defined Asset Funds
subject only to a reduced sales charge. You may exchange your units of any
Select Ten Portfolio, of any other Defined Asset Fund with a regular maximum
sales charge of at least 3.50%, or of any unaffiliated unit trust with a regular
maximum sales charge of at least 3.0%, for Units of this Fund at their relative
net asset values, subject only to a reduced sales charge.
To make an exchange, you should contact your financial professional to find
out what suitable Exchange Funds are available and to obtain a prospectus. You
may acquire units of only those Exchange Funds in which the Sponsors are
maintaining a secondary market and which are lawfully for sale in the state
where you reside. Except for the reduced sales charge, an exchange is a taxable
event normally requiring recognition of any gain or loss on the units exchanged.
However, the Internal Revenue Service may seek to disallow a loss if the
portfolio of the units acquired is not materially different from the portfolio
of the units exchanged; you should consult your own tax advisor. If the proceeds
of units exchanged are insufficient to acquire a whole number of Exchange Fund
units, you may pay the difference in cash (not exceeding the price of a single
unit acquired).
As the Sponsors are not obligated to maintain a secondary market in any
series, there can be no assurance that units of a desired series will be
available for exchange. The Exchange Option may be amended or terminated at any
time without notice.
SUPPLEMENTAL INFORMATION
Upon writing or calling the Trustee shown on the back cover of this
Prospectus, investors will receive at no cost to the investor supplemental
information about the Fund, which has been filed with the SEC. The supplemental
information includes more detailed risk factor disclosure about the types of
Bonds that may be part of the Fund's Portfolio, general risk disclosure
concerning any insurance securing certain Bonds, and general information about
the structure and operation of the Fund.
15
<PAGE>
APPENDIX A
DESCRIPTION OF RATINGS (AS DESCRIBED BY THE RATING COMPANIES THEMSELVES)
STANDARD & POOR'S RATINGS GROUP, A DIVISION OF MCGRAW-HILL, INC.
A Standard & Poor's rating on the units of an investment trust (hereinafter
referred to collectively as 'units' and 'funds') is a current assessment of
creditworthiness with respect to the investments held by the fund. This
assessment takes into consideration the financial capacity of the issuers and of
any guarantors, insurers, lessees, or mortgagors with respect to such
investments. The assessment, however, does not take into account the extent to
which fund expenses will reduce payment to the Holder of the interest and
principal required to be paid on portfolio assets. In addition, the rating is
not a recommendation to purchase, sell, or hold units, as the rating does not
comment as to market price of the units or suitability for a particular
investor.
AAA--Units rated AAA represent interests in funds composed exclusively of
securities that, together with their credit support, are rated AAA by Standard &
Poor's and/or certain short-term investments. This AAA rating is the highest
rating assigned by Standard & Poor's to a security. Capacity to pay interest and
repay principal is extremely strong.
AA--Debt rated AA has a very strong capacity to pay interest and repay
principal, and differs from the highest rated issues only in small degree.
A--Debt rated A has a strong capacity to pay interest and repay principal
although it is somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions than debt in higher rated categories.
BBB--Debt rated BBB is regarded as having an adequate capacity to pay
interest and repay principal. Whereas it normally exhibits adequate protection
parameters, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity to pay interest and repay principal for
debt in this category than in higher rated categories.
BB, B, CCC, CC--Debt rated BB, B, CCC and CC is regarded, on balance, as
predominantly speculative with respect to capacity to pay interest and repay
principal in accordance with the terms of the obligation. BB indicates the
lowest degree of speculation and CC the highest degree of speculation. While
such debt will likely have some quality and protective characteristics, these
are outweighed by large uncertainties or major risk exposures to adverse
conditions.
The ratings may be modified by the addition of a plus or minus sign to show
relative standing within the major rating categories.
A provisional rating, indicated by 'p' following a rating, assumes the
successful completion of the project being financed by the issuance of the debt
being rated and indicates that payment of debt service requirements is largely
or entirely dependent upon the successful and timely completion of the project.
This rating, however, while addressing credit quality subsequent to completion
of the project, makes no comment on the likelihood of, or the risk of default
upon failure of, such completion.
*Continuance of the rating is contingent upon S&P's receipt of an executed
copy of the escrow agreement during documentation confirming investments and
cash flows.
NR--Indicates that no rating has been requested, that there is insufficient
information on which to base rating or that Standard & Poor's does not rate a
particular type of obligation as a matter of policy.
MOODY'S INVESTORS SERVICE, INC.
Aaa--Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to as
'gilt edge'. Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.
Aa--Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally known as
high grade bonds. They are rated lower than the best bonds because margins of
protection may not be as large as in Aaa securities or fluctuation of protective
elements may be of greater amplitude or there may be other elements present
which make the long term risks appear somewhat larger than in Aaa securities.
a-1
<PAGE>
A--Bonds which are rated A possess many favorable investment attributes and
are to be considered as upper medium grade obligations. Factors giving security
to principal and interest are considered adequate, but elements may be present
which suggest a susceptibility to impairment sometime in the future.
Baa--Bonds which are rated Baa are considered as medium grade obligations,
i.e., they are neither highly protected nor poorly secured. Interest payments
and principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.
Ba--Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection of interest
and principal payments may be very moderate, and thereby not well safeguarded
during both good and bad times over the future. Uncertainty of position
characterizes bonds in this class.
B--Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.
Rating symbols may include numerical modifiers 1, 2 or 3. The numerical
modifier 1 indicates that the security ranks at the high end, 2 in the
mid-range, and 3 nearer the low end, of the generic category. These modifiers of
rating symbols are to give investors a more precise indication of relative debt
quality in each of the historically defined categories.
Conditional ratings, indicated by 'Con.', are sometimes given when the
security for the bond depends upon the completion of some act or the fulfillment
of some condition. Such bonds are given a conditional rating that denotes their
probable credit stature upon completion of that act or fulfillment of that
condition.
FITCH INVESTORS SERVICES, INC.
AAA--These bonds are considered to be investment grade and of the highest
quality. The obligor has an extraordinary ability to pay interest and repay
principal, which is unlikely to be affected by reasonably foreseeable events.
AA--These bonds are considered to be investment grade and of high quality.
The obligor's ability to pay interest and repay principal, which very strong, is
somewhat less than for AAA rated securities or more subject to possible change
over the term of the issue.
A--These bonds are considered to be investment grade and of good quality.
The obligor's ability to pay interest and repay principal is considered to be
strong, but may be more vulnerable to adverse changes in economic conditions and
circumstances than bonds with higher ratings.
BBB--These bonds are considered to be investment grade and of satisfactory
quality. The obligor's ability to pay interest and repay principal is considered
to be adequate. Adverse changes in economic conditions and circumstances,
however are more likely to weaken this ability than bonds with higher ratings.
A '+' or a '-' sign after a rating symbol indicates relative standing in its
rating.
DUFF & PHELPS CREDIT RATING CO.
AAA--Highest credit quality. The risk factors are negligible, being only
slightly more than for risk-free U.S. Treasury debt.
AA--High credit quality. Protection factors are strong. Risk is modest but
may vary slightly from time to time because of economic stress.
A--Protection factors are average but adequate. However, risk factors are
more variable and greater in periods of economic stress.
A '+' or a '-' sign after a rating symbol indicates relative standing in its
rating.
a-2
<PAGE>
APPENDIX B
SECONDARY MARKET SALES CHARGE SCHEDULE
SALES CHARGE
(GROSS UNDERWRITING PROFIT)
-----------------------------
AS PERCENT
OF
BID SIDE AS PERCENT
PUBLIC OF
OFFERING NET AMOUNT
NUMBER OF UNITS PRICE INVESTED
- ----------------------------------- ------------ ----------
MONTHLY PAYMENT SERIES AND INSURED
SERIES:
Less than 250...................... 5.50% 5.820%
250 - 499.......................... 4.50 4.712
500 - 749.......................... 3.50 3.627
750 - 999.......................... 2.50 2.564
1,000 or more...................... 2.00 2.041
INTERMEDIATE SERIES:
Less than 250...................... 4.75% 4.987%
250 - 499.......................... 3.75 3.896
500 - 749.......................... 2.75 2.828
750 - 999.......................... 2.00 2.041
1,000 or more...................... 1.50 1.523
CASH OR ACCRETION BOND SERIES AND
SELECT SERIES::
Less than 250,000.................. 3.50% 3.627%
250,000 - 499,999.................. 2.75 2.828
500,000 - 749,999.................. 2.00 2.040
750,000 - 999,999.................. 1.50 1.523
1,000,000 or more.................. 1.00 1.010
The dealer concession will be 65% of the Effective Sales Charge.
PREFERRED STOCK PUT SERIES: Units are sold at no sales charge.
FOR FUNDS WITH A DEFERRED SALES CHARGE, Units purchased after the deduction of
the final deferred sales charge installment will be subject only to an up-front
sales charge as set forth above. Until all deferred sales charges have been
collected, the dealer concession will be 65% of the difference between the offer
price and the deferred sales charges still remaining to be collected.
b-1
<PAGE>
PROSPECTUS FORMAT
This prospectus consists of a Part A and this Part B. The Prospectus does
not contain all of the information with respect to the investment company set
forth in its registration statement and exhibits relating thereto which have
been filed with the Securities and Exchange Commission, Washington, D.C. under
the Securities Act of 1933 and the Investment Company Act of 1940, and to which
reference is hereby made. Copies of filed material can be obtained from the
Public Reference Section of the Commission, 450 Fifth Street, N.W., Washington,
D.C. 20549 at prescribed rates. The Commission also maintains a Web site that
contains information statements and other information regarding registrants such
as Defined Asset Funds that file electronically with the Commission at
http://www.sec.gov.
No person is authorized to give any information or to make any
representations with respect to this investment company not contained in the
registration statement and related exhibits; and any information or
representation not contained therein must not be relied upon as having been
authorized. The Prospectus does not constitute an offer to sell, or a
solicitation of any offer to buy, securities in any state to any person to whom
it is not lawful to make such offer in such state.
<PAGE>
PROSPECTUS FORMAT
This prospectus consists of a Part A and this Part B. The Prospectus does
not contain all of the information with respect to the investment company set
forth in its registration statement and exhibits relating thereto which have
been filed with the Securities and Exchange Commission, Washington, D.C. under
the Securities Act of 1933 and the Investment Company Act of 1940, and to which
reference is hereby made. Copies of such material can be obtained from the
Public Reference Section of the Commission, 450 Fifth Street, N.W., Washington,
D.C. 20549 at prescribed rates. The Commission also maintains a Web site that
contains information statements and other information regarding registrants such
as Defined Asset Funds that file electronically with the Commission at
http://www.sec.gov.
No person is authorized to give any information or to make any
representations with respect to this investment company not contained in the
registration statement and related exhibits; and any information or
representation not contained therein must not be relied upon as having been
authorized. The Prospectus does not constitute an offer to sell, or a
solicitation of any offer to buy, securities in any state to any person to whom
it is not lawful to make such offer in such state.
14100--7/97
<PAGE>
DEFINED
ASSET FUNDSSM
SPONSORS: CORPORATE INCOME FUND
Merrill Lynch, Intermediate Term Series--29
Pierce, Fenner & Smith Incorporated (A Unit Investment Trust)
Defined Asset Funds PROSPECTUS PART A
P.O. Box 9051 This Prospectus consists of a Part A and
Princeton, NJ 08543-9051 a Part B. This Prospectus does not
(609) 282-8500 contain all of the information with
Smith Barney Inc. respect to the investment company set
Unit Trust Department forth in its registration statement and
388 Greenwich Street--23rd Floor exhibits relating thereto which have
New York, NY 10013 been filed with the Securities and
(212) 816-4000 Exchange Commission, Washington, D.C.
PaineWebber Incorporated under the Securities Act of 1933 and the
1200 Harbor Boulevard Investment Company Act of 1940, and to
Weehawken, NJ 07087 which reference is hereby made. Copies
(201) 902-3000 of filed material can be obtained from
Prudential Securities Incorporated the Public Reference Section of the
One New York Plaza Commission, 450 Fifth Street, N.W.,
New York, NY 10292 Washington, D.C. 20549 at prescribed
(212) 778-6164 rates. The Commission also maintains a
Dean Witter Reynolds Inc. Web site that contains information
Two World Trade Center--59th Floor statements and other information
New York, NY 10048 regarding registrants such as Defined
(212) 392-2222 Asset Funds that file electronically
EVALUATOR: with the Commission at
Interactive Data Services Inc. http://www.sec.gov.
14 Wall Street No person is authorized to give any
New York, NY 10005 information or to make any
TRUSTEE: representations with respect to this
The Bank of New York investment company not contained in its
Unit Investment Trust Department registration statement and exhibits
P.O. Box 974 thereto; and any information or
Wall Street Division representation not contained therein
New York, NY 10268-0974 must not be relied upon as having been
1-800-221-7771 authorized. This Prospectus does not
constitute an offer to sell, or a
solicitation of an offer to buy,
securities in any state to any person to
whom it is not lawful to make such offer
in such state.
13790--8/98
<PAGE>
DEFINED ASSET FUNDS--
CORPORATE INCOME FUND
CONTENTS OF REGISTRATION STATEMENT
This Post-Effective Amendment to the Registration Statement on Form S-6
comprises the following papers and documents:
The facing sheet of Form S-6.
The cross-reference sheet (incorporated by reference to the Cross-Reference
Sheet to the Registration Statement on Form S-6 of Defined Asset Funds Municipal
Insured Series, 1933 Act File No. 33-54565).
The Prospectus including Part B incorporated by reference, Defined Asset
Funds--Corporate Income Fund, Monthly Payment Series--254, 1933 Act No.
33-10366.
The Signatures.
The following exhibits:
1.1.1--Form of Standard Terms and Conditions of Trust Effective as of
October 21, 1993 (incorporated by reference to Exhibit 1.1.1 to the
Registration Statement of Municipal Investment Trust Fund,
Multi-state Series--48, 1933 Act File No. 33-50247).
4.1 --Consent of the Evaluator.
5.1 --Consent of independent accountants.
9.1 --Information Supplement (incorporated by reference to Exhibit 9.1 to
the Registration Statement of Corporate Income Fund, Intermediate
Term Series 54, 1933 Act File No. 33-57973.
R-1
<PAGE>
DEFINED ASSET FUNDS--
CORPORATE INCOME FUND
INTERMEDIATE TERM SERIES--29
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THE REGISTRANT,
DEFINED ASSET FUNDS--CORPORATE INCOME FUND, INTERMEDIATE TERM SERIES--29 (A UNIT
INVESTMENT TRUST), CERTIFIES THAT IT MEETS ALL OF THE REQUIREMENTS FOR
EFFECTIVENESS OF THIS REGISTRATION STATEMENT PURSUANT TO RULE 485(B) UNDER THE
SECURITIES ACT OF 1933 AND HAS DULY CAUSED THIS REGISTRATION STATEMENT OR
AMENDMENT TO THE REGISTRATION STATEMENT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED THEREUNTO DULY AUTHORIZED IN THE CITY OF NEW YORK AND STATE OF NEW
YORK ON THE 19TH DAY OF AUGUST, 1998.
SIGNATURES APPEAR ON PAGES R-3, R-4, R-5, R-6 AND R-7.
A majority of the members of the Board of Directors of Merrill Lynch,
Pierce, Fenner & Smith Incorporated has signed this Registration Statement or
Amendment to the Registration Statement pursuant to Powers of Attorney
authorizing the person signing this Registration Statement or Amendment to the
Registration Statement to do so on behalf of such members.
A majority of the members of the Board of Directors of Smith Barney Inc.
has signed this Registration Statement or Amendment to the Registration
Statement pursuant to Powers of Attorney authorizing the person signing this
Registration Statement or Amendment to the Registration Statement to do so on
behalf of such members.
A majority of the members of the Executive Committee of the Board of
Directors of PaineWebber Incorporated has signed this Registration Statement or
Amendment to the Registration Statement pursuant to Powers of Attorney
authorizing the person signing this Registration Statement or Amendment to the
Registration Statement to do so on behalf of such members.
A majority of the members of the Board of Directors of Prudential
Securities Incorporated has signed this Registration Statement or Amendment to
the Registration Statement pursuant to Powers of Attorney authorizing the person
signing this Registration Statement or Amendment to the Registration Statement
to do so on behalf of such members.
A majority of the members of the Board of Directors of Dean Witter Reynolds
Inc. has signed this Registration Statement or Amendment to the Registration
Statement pursuant to Powers of Attorney authorizing the person signing this
Registration Statement or Amendment to the Registration Statement to do so on
behalf of such members.
R-2
<PAGE>
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
DEPOSITOR
By the following persons, who constitute a majority of Powers of Attorney
the Board of Directors of Merrill Lynch, Pierce, have been filed
Fenner & Smith Incorporated: under
Form SE and the
following 1933 Act
File
Number: 33-43466
and 33-51607
HERBERT M. ALLISON, JR.
BARRY S. FREIDBERG
EDWARD L. GOLDBERG
STEPHEN L. HAMMERMAN
JEROME P. KENNEY
DAVID H. KOMANSKY
DANIEL T. NAPOLI
THOMAS H. PATRICK
JOHN L. STEFFENS
ROGER M. VASEY
ARTHUR H. ZEIKEL
By DANIEL C. TYLER
(As authorized signatory for Merrill Lynch, Pierce,
Fenner & Smith Incorporated and
Attorney-in-fact for the persons listed above)
R-3
<PAGE>
PRUDENTIAL SECURITIES INCORPORATED
DEPOSITOR
By the following persons, who constitute a majority of Powers of Attorney
the Board of Directors of Prudential Securities have been filed
Incorporated: under Form SE and
the following 1933
Act File Numbers:
33-41631 and
333-15919
ROBERT C. GOLDEN
ALAN D. HOGAN
A. LAURENCE NORTON, JR.
LELAND B. PATON
VINCENT T. PICA II
MARTIN PFINSGRAFF
HARDWICK SIMMONS
LEE B. SPENCER, JR.
BRIAN M. STORMS
By RICHARD R. HOFFMANN
(As authorized signatory for Prudential Securities
Incorporated and Attorney-in-fact for the persons
listed above)
R-4
<PAGE>
SMITH BARNEY INC.
DEPOSITOR
By the following persons, who constitute a majority of Powers of Attorney
the Board of Directors of Smith Barney Inc.: have been filed
under the 1933 Act
File Numbers:
33-49753, 33-51607
and 333-41765
JAMES DIMON
DERYCK C. MAUGHAN
By GINA LEMON
(As authorized signatory for
Smith Barney Inc. and
Attorney-in-fact for the persons listed above)
R-5
<PAGE>
DEAN WITTER REYNOLDS INC.
DEPOSITOR
By the following persons, who constitute Powers of Attorney have been filed
a majority of under Form SE and the following 1933
the Board of Directors of Dean Witter Act File Numbers: 33-17085 and
Reynolds Inc.: 333-13039
RICHARD M. DeMARTINI
ROBERT J. DWYER
CHRISTINE A. EDWARDS
CHARLES A. FIUMEFREDDO
JAMES F. HIGGINS
MITCHELL M. MERIN
STEPHEN R. MILLER
RICHARD F. POWERS III
PHILIP J. PURCELL
THOMAS C. SCHNEIDER
WILLIAM B. SMITH
By
MICHAEL D. BROWNE
(As authorized signatory for
Dean Witter Reynolds Inc.
and Attorney-in-fact for the persons listed above)
R-6
<PAGE>
PAINEWEBBER INCORPORATED
DEPOSITOR
By the following persons, who constitute Powers of Attorney have been filed
the Board of Directors of PaineWebber under
Incorporated: the following 1933 Act File
Number: 2-61279
MARGO N. ALEXANDER
TERRY L. ATKINSON
BRIAN M. BAREFOOT
STEVEN P. BAUM
MICHAEL CULP
REGINA A. DOLAN
JOSEPH J. GRANO, JR.
EDWARD M. KERSCHNER
JAMES P. MacGILVRAY
DONALD B. MARRON
ROBERT H. SILVER
MARK B. SUTTON
By
ROBERT E. HOLLEY
(As authorized signatory for
PaineWebber Incorporated
and Attorney-in-fact for the persons listed above)
R-7
<PAGE>
EXHIBIT 4.1
INTERACTIVE DATA
FINANCIAL TIMES INFORMATION
14 WALL STREET, 11th FLOOR
NEW YORK, NEW YORK 10005
(212) 306-6596
FAX 212-306-6698
August 19, 1998
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
Defined Asset Funds
P.O. Box 9051
Princeton, New Jersey 08543-9051
The Bank of New York
101 Barclay Street
New York, New York 10286
Re: Defined Asset Funds--Corporate Income Fund
Intermediate Term Series--29
(A Unit Investment Trust) Units of Fractional Undivided Interest-Registered
Under the Securities Act of 1933, File No. 33-38787)
Gentlemen:
We have examined the Registration Statement for the above captioned Fund.
We hereby consent to the reference to Interactive Data Services, Inc. in
the Prospectus contained in the Post-Effective Amendment No. 8 to the
Registration Statement for the above captioned Fund and to the use of the
evaluations of the Obligations prepared by us which are referred to in such
Prospectus and Registration Statement.
You are authorized to file copies of this letter with the Securities and
Exchange Commission.
Very truly yours,
JAMES PERRY
Vice President
<PAGE>
Exhibit 5.1
CONSENT OF INDEPENDENT ACCOUNTANTS
The Sponsors and Trustee of
Defined Asset Funds--Corporate Income Fund--Intermediate Term Series--29
We consent to the use in this Post-Effective Amendment No. 8 to Registration
Statement No. 33-38787 of our opinion dated August 4, 1998 appearing in the
Prospectus, which is part of such Registration Statement, and to the reference
to us under the heading 'Miscellaneous--Auditors' in such Prospectus.
DELOITTE & TOUCHE LLP
New York, N.Y.
August 19, 1998
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER>1
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> May-31-1998
<PERIOD-END> May-31-1998
<INVESTMENTS-AT-COST> 16,771,475
<INVESTMENTS-AT-VALUE> 18,315,344
<RECEIVABLES> 334,474
<ASSETS-OTHER> 118,617
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 18,768,435
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,481
<TOTAL-LIABILITIES> 5,481
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 16,829,910
<SHARES-COMMON-STOCK> 17,493
<SHARES-COMMON-PRIOR> 19,379
<ACCUMULATED-NII-CURRENT> 389,175
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,543,869
<NET-ASSETS> 18,762,954
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,644,785
<OTHER-INCOME> 0
<EXPENSES-NET> (24,702)
<NET-INVESTMENT-INCOME> 1,620,083
<REALIZED-GAINS-CURRENT> 214,754
<APPREC-INCREASE-CURRENT> (60,347)
<NET-CHANGE-FROM-OPS> 1,774,490
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,622,577
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 99,751
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 1,886
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (1,979,812)
<ACCUMULATED-NII-PRIOR> 430,413
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<PAGE>
DAVIS POLK & WARDWELL
450 LEXINGTON AVENUE
NEW YORK, NEW YORK 10017
(212) 450-4000
August 19, 1998
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Dear Sirs:
We hereby represent that the Post-Effective Amendments to the registered
unit investment trusts described in Exhibit A attached hereto do not contain
disclosures which would render them ineligible to become effective pursuant to
Rule 485(b) under the Securities Act of 1933.
Very truly yours,
Davis Polk & Wardwell
Attachment
<PAGE>
EXHIBIT A
<TABLE>
<CAPTION>
1933 ACT 1940 ACT
FUND NAME CIK FILE NO. FILE NO.
- --------- --- -------- --------
<S> <C> <C> <C>
DEFINED ASSET FUNDS-MITF AMT MPS-19 877295 33-45206 811-1777
DEFINED ASSET FUNDS-MUNICIPAL STATE SERIES 4 944750 33-62969 811-2537
DEFINED ASSET FUNDS-GSIF GNMA SERIES 1C 781280 33-08086 811-2810
DEFINED ASSET FUNDS-GSIF MPUSTS-3 781754 2-97979 811-2810
DEFINED ASSET FUNDS-IS-26 DAF 895587 33-54457 811-2295
DEFINED ASSET FUNDS- IS-192 DAF 803875 33-49565 811-1777
DEFINED ASSET FUNDS- IS-206 DAF 803937 33-53647 811-1777
DEFINED ASSET FUNDS- IS-223 DAF 804028 33-58527 811-1777
DEFINED ASSET FUNDS-CIF ITS-26 781783 33-34031 811-2295
DEFINED ASSET FUNDS-CIF ITS-29 791017 33-38787 811-2295
DEFINED ASSET FUNDS-CIF ITS-37 883648 33-47080 811-2295
DEFINED ASSET FUNDS-ITS-44 DAF 883655 33-49503 811-2295
DEFINED ASSET FUNDS- ITS-232 DAF 910378 33-53423 811-1777
DEFINED ASSET FUNDS- ITS-268 924361 333-0251 811-1777
DEFINED ASSET FUNDS- ITS-305 947173 333-2387 811-1777
DEFINED ASSET FUNDS-CIF MPS-307 781811 33-44740 811-2295
DEFINED ASSET FUNDS-CIF MPS-319 893499 33-57875 811-2295
DEFINED ASSET FUNDS-MPS-402 DAF 893506 333-2453 811-2295
DEFINED ASSET FUNDS- MPS-570 DAF 924317 333-0265 811-1777
DEFINED ASSET FUNDS-MITF MSS-6 881830 33-47807 811-1777
DEFINED ASSET FUNDS- MSS-209 DAF 924312 333-0313 811-1777
DEFINED ASSET FUNDS- MSS-313 1031544 333-2687 811-1777
DEFINED ASSET FUNDS- MSS-37 DAF 895624 33-49585 811-1777
DEFINED ASSET FUNDS- MSS-64 DAF 910013 33-53581 811-1777
DEFINED ASSET FUNDS- MSS-65 DAF 910014 33-53649 811-1777
DEFINED ASSET FUNDS-MITF MSS 8V 868165 33-40704 811-1777
DEFINED ASSET FUNDS-MITF NYPUT-4 759756 2-94964 811-1777
DEFINED ASSET FUNDS-MITF PAS-14 310940 2-64044 811-1777
DEFINED ASSET FUNDS-MITF PAS-15 313105 2-65441 811-1777
TOTAL: 29 FUNDS
</TABLE>
