DEFINED ASSET FUNDSSM
- --------------------------------------------------------------------------------
MUNICIPAL INVESTMENT This Defined Fund is a portfolio of preselected
TRUST FUND bonds formed to provide safety of principal and
INSURED SERIES--174 tax-free income by investing in a fixed portfolio
(A UNIT INVESTMENT of insured fixed-rate bonds issued by states and
TRUST) their local governments and authorities. In the
- ------------------------------opinion of bond counsel, your interest income is,
/ / DESIGNED FOR FEDERALLY with certain exceptions, exempt from regular
TAX-FREE INCOME Federal income taxes under existing law. All bonds
/ / DEFINED PORTFOLIO OF are insured as to scheduled payments of principal
INSURED MUNICIPAL BONDS and interest. This insurance guarantees the timely
/ / AAA RATED BONDS payment of principal and interest but does not
/ / MONTHLY INCOME guarantee the market value of the bonds or the
value of the Units. The market value of the bonds,
and therefore the value of the Units, will
fluctuate with changes in interest rates and other
factors.
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 MUNICIPAL INVESTMENT TRUST
Pierce, Fenner & Smith FUND 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. 1-800-323-1508.
PaineWebber Incorporated PROSPECTUS PART A DATED FEBRUARY 20, 1998.
<PAGE>
- --------------------------------------------------------------------------------
Def ined 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 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 Insured Series
- ----------------------------------------------------------------
Our defined portfolio of municipal bonds offers you a simple and convenient way
to earn tax-free monthly income. 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 interest income exempt from regular federal income taxes through
investment in a fixed portfolio consisting primarily of insured long-term
municipal bonds issued by or on behalf of states and their local governments and
authorities. The information in this prospectus is as of November 30, 1997, the
evaluation date.
DIVERSIFICATION
The Portfolio contains 15 bonds. 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.
- ----------------------------------------------------------------
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 municipal bonds of the following types:
APPROXIMATE
PORTFOLIO
PERCENTAGE
/ / Airports/Ports/Highways 3%
/ / General Obligation 13%
/ /Hospitals/Nursing Homes/Mental
Health Facilities 8%
/ / Housing 2%
/ / Industrial Development Revenue 27%
/ / Municipal Water/Sewer Utilities 1%
/ / Refunded Bonds 46%
INSURANCE
The bonds included in the Portfolio are insured. This insurance guarantees the
timely payment of principal of and interest on the bonds, but does not guarantee
the value of the bonds or the Fund units. Insurance may not cover accelerated
payments of principal or any increase in interest payments or premiums payable
on mandatory redemptions, including if interest on a bond is determined to be
taxable (see Bonds Backed by Letters of Credit or Insurance in Part B.) The
approximate percentage of the aggregate face amount insured by each insurance
company is:
APPROXIMATE
PORTFOLIO
INSURANCE COMPANY PERCENTAGE
AMBAC Indemnity Corporation 12%
Financial Security Assurance of Maryland Inc. 13%
Financial Guaranty Insurance Company 26%
Financial Security Assurance Inc. 3%
MBIA Insurance Corporation 46%
A-2
<PAGE>
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
Although many bonds are subject to optional refunding or call provisions, we
have selected bonds with call protection. This call protection means that any
bond in the Portfolio generally cannot be called for a number of years after the
initial date of deposit (which was December 16, 1991) and thereafter at a
declining premium over par.
TAX INFORMATION
Based on the opinion of bond counsel, income from the bonds held by this Fund is
generally 100% exempt under existing laws from regular federal income tax. Any
gain on a disposition of the underlying bonds or units will be subject to tax.
An investor who is an individual and has held his 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. Investors should consult
their tax advisers in this regard.
- ----------------------------------------------------------------
Defining Your Investment
- ----------------------------------------------------------------
PUBLIC OFFERING PRICE PER UNIT $1,087.40
The Public Offering Price as of November 30, 1997, the evaluation date, is based
on the aggregate bid side value of the underlying bonds in the Portfolio
($11,962,659), divided by the number of units outstanding (11,301) plus a sales
charge of 2.65% of the Public Offering Price (2.726% of 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 thereafter.
REINVESTMENT OPTION
You can elect to automatically reinvest your distributions into a separate
portfolio of federally tax-exempt bonds. Most or all of the bonds in that
portfolio, however, will not be insured. Reinvesting helps to compound your
income tax-free.
PREMIUM AND DISCOUNT ISSUES
On the evaluation date, 87% of the bonds were valued at a premium over par and
13% at a discount from par (see Risk Factors in Part B).
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 if the value
of the Portfolio is less than 40% of the face amount of bonds deposited.On the
evaluation date the value of the Fund was 79% 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 and the
insurance companies backing 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 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 Industrial Development Revenue bonds and is
therefore dependent to a significant extent on revenues generated by those
particular activities. The Fund is also concentrated in Refunded Bonds. (See
Risk Factors in Part B.)
A-3
<PAGE>
- ----------------------------------------------------------------
Defining Your Income
- ----------------------------------------------------------------
MONTHLY FEDERALLY TAX-FREE 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: $ 5.30
Annual Income per unit: $ 63.65
These figures are estimates determined as of the evaluation date and actual
payments may vary.
- ----------------------------------------------------------------
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 Charges 5.50%
ESTIMATED ANNUAL FUND OPERATING EXPENSES
Per Unit
--------------
Trustee's Fee $ 0.69
Portfolio Supervision, Bookkeeping and
Administrative Fees $ 0.37
Evaluator's Fee $ 0.23
Other Operating Expenses $ 0.35
--------------
TOTAL $ 1.64
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 bid side redemption and secondary market
repurchase price as of the evaluation date was $1,058.55 ($28.85 less than the
Public Offering Price). There is no fee for redeeming or selling your units.
- --------------------------------------------------------------------------------
TAX-FREE VS. TAXABLE INCOME: A COMPARISON OF TAXABLE AND TAX-FREE YIELDS
<TABLE>
<CAPTION>
EFFECTIVE
TAXABLE INCOME 1998* % TAX TAX-FREE YIELD OF
SINGLE RETURN JOINT RETURN BRACKET 3% 3.5% 4% 4.5% 5% 5.5% 6% 6.5%
IS EQUIVALENT TO A TAXABLE YIELD OF
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 0- 25,350 $ 0- 42,350 15.00 3.53 4.12 4.71 5.29 5.88 6.47 7.06 7.65
- ----------------------------------------------------------------------------------------------------------
$ 25,351- 61,400 $ 42,351-102,300 28.00 4.17 4.86 5.56 6.25 6.94 7.64 8.33 9.03
- ----------------------------------------------------------------------------------------------------------
$ 61,401-128,100 $102,301-155,950 31.00 4.35 5.07 5.80 6.52 7.25 7.97 8.70 9.42
- ----------------------------------------------------------------------------------------------------------
$128,101-278,450 $155,951-278,450 36.00 4.69 5.47 6.25 7.03 7.81 8.59 9.38 10.16
- ----------------------------------------------------------------------------------------------------------
OVER $278,450 OVER $278,450 39.60 4.97 5.79 6.62 7.45 8.28 9.11 9.93 10.76
- ----------------------------------------------------------------------------------------------------------
</TABLE>
To compare the yield of a taxable security with the yield of a federally
tax-free security, find your taxable income and read across. The table
incorporates 1998 federal income tax rates and assumes that all income would
otherwise be taxed at the investor's highest tax rate. Yield figures are for
example only.
*Based upon net amount subject to federal income tax after deductions and
exemptions. This table does not reflect the possible effect of other tax
factors, such as alternative minimum tax, personal exemptions, the phase-out of
exemptions, itemized deductions, the possible partial disallowance of deductions
or state and local taxation. Consequently, investors are urged to consult their
own tax advisers in this regard.
A-4
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
INSURED SERIES - 174
REPORT OF INDEPENDENT ACCOUNTANTS
The Sponsors, Trustee and Holders
of Defined Asset Funds - Municipal Investment Trust Fund,
Insured Series - 174:
We have audited the accompanying statement of condition of
Defined Asset Funds - Municipal Investment Trust Fund,
Insured Series - 174, including the portfolio, as of
November 30, 1997 and the related statements of operations
and of changes in net assets for the years ended November
30, 1997, 1996 and 1995. 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 November
30, 1997, as shown in such portfolio, were confirmed to us
by The Chase Manhattan Bank, the Trustee. An audit also
includes assessing the accounting principles used and
significant estimates made by the Trustee, as well as
evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements referred to
above present fairly, in all material respects, the
financial position of Defined Asset Funds - Municipal
Investment Trust Fund, Insured Series - 174 at November 30,
1997 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.
January 12, 1998
D - 1.
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
INSURED SERIES - 174
STATEMENT OF CONDITION
As of November 30, 1997
<TABLE>
<S> <C> <C>
TRUST PROPERTY:
Investment in marketable securities -
at value (cost $ 10,949,150 )(Note 1)........ $11,962,659
Accrued interest ............................... 272,861
Cash - principal ............................... 47,729
-----------
Total trust property ......................... 12,283,249
LESS LIABILITIES:
Income advance from Trustee..................... $ 105,324
Accrued Sponsors' fees ......................... 4,229 109,553
----------- -----------
NET ASSETS, REPRESENTED BY:
11,301 units of fractional undivided
interest outstanding (Note 3)................ 12,010,388
Undistributed net investment income ............ 163,308 $12,173,696
----------- ===========
UNIT VALUE ($ 12,173,696 / 11,301 units )......... $ 1,077.22
===========
</TABLE>
See Notes to Financial Statements.
D - 2.
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
INSURED SERIES - 174
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Years Ended November 30,
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income ........................ $ 774,890 $ 855,229 $ 891,334
Trustee's fees and expenses ............ (13,930) (14,617) (15,052)
Sponsors' fees ......................... (4,627) (4,529) (8,391)
------------------------------------------------
Net investment income .................. 756,333 836,083 867,891
------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Realized gain on
securities sold or redeemed .......... 94,457 65,803 52,346
Unrealized appreciation (depreciation)
of investments ....................... (230,576) (141,559) 1,476,301
------------------------------------------------
Net realized and unrealized
gain (loss) on investments ........... (136,119) (75,756) 1,528,647
------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .............. $ 620,214 $ 760,327 $ 2,396,538
================================================
</TABLE>
See Notes to Financial Statements.
D - 3.
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
INSURED SERIES - 174
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Years Ended November 30,
1997 1996 1995
---- ---- ----
<S> <C> <C> <C>
OPERATIONS:
Net investment income .................. $ 756,333 $ 836,083 $ 867,891
Realized gain on
securities sold or redeemed .......... 94,457 65,803 52,346
Unrealized appreciation (depreciation)
of investments ....................... (230,576) (141,559) 1,476,301
------------------------------------------------
Net increase in net assets
resulting from operations ............ 620,214 760,327 2,396,538
------------------------------------------------
DISTRIBUTIONS TO HOLDERS (Note 2):
Income ................................ (757,197) (836,690) (870,744)
Principal .............................. (46,852) (35,225) (22,907)
------------------------------------------------
Total distributions .................... (804,049) (871,915) (893,651)
------------------------------------------------
SHARE TRANSACTIONS:
Redemption amounts - income ............ (12,809) (13,542) (8,627)
Redemption amounts - principal ......... (985,616) (1,026,776) (711,446)
------------------------------------------------
Total share transactions ............... (998,425) (1,040,318) (720,073)
------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS .... (1,182,260) (1,151,906) 782,814
NET ASSETS AT BEGINNING OF YEAR .......... 13,355,956 14,507,862 13,725,048
------------------------------------------------
NET ASSETS AT END OF YEAR ................ $12,173,696 $13,355,956 $14,507,862
================================================
PER UNIT:
Income distributions during
year ................................. $ 63.98 $ 64.34 $ 64.46
================================================
Principal distributions during
year ................................. $ 3.83 $ 2.67 $ 1.65
================================================
Net asset value at end of
year ................................. $ 1,077.22 $ 1,091.80 $ 1,099.66
================================================
TRUST UNITS:
Redeemed during year ................... 932 960 690
Outstanding at end of year ............. 11,301 12,233 13,193
================================================
</TABLE>
See Notes to Financial Statements.
D - 4.
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
INSURED SERIES - 174
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<S> <C>
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.
(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
Reinvestments - Distributions" in this Prospectus, Part B.
3. NET CAPITAL
Cost of 11,301 units at Date of Deposit .................... $11,666,997
Less sales charge .......................................... 525,016
-----------
Net amount applicable to Holders ........................... 11,141,981
Redemptions of units - net cost of 3,699 units redeemed
less redemption amounts (principal)....................... (270,869)
Realized gain on securities sold or redeemed ............... 323,424
Principal distributions .................................... (197,657)
Unrealized appreciation of investments...................... 1,013,509
-----------
Net capital applicable to Holders .......................... $12,010,388
===========
4. INCOME TAXES
As of November 30, 1997, unrealized appreciation of investments, based on
cost for Federal income tax purposes, aggregated $1,013,509, all of which
related to appreciated securities. The cost of investment securities for
Federal income tax purposes was $10,949,150 at November 30, 1997.
</TABLE>
D - 5.
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
INSURED SERIES - 174
PORTFOLIO
As of November 30, 1997
<TABLE>
<CAPTION>
Rating of Optional
Portfolio No. and Title of Issues Face Redemption
Securities (1) (4) Amount Coupon Maturities(3) Provisions(3) Cost Value(2)
---------- --------- ----------- ----------- ------------ ------------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 City of Burlington, KS, Ser. 1991, Poll. AAA $ 1,500,000 7.000 % 2031 06/01/01 $ 1,539,450 $ 1,635,870
Ctl. Rfdg. Rev. Bonds (Kansas Gas and @ 102.000
Elec. Co. Proj.) (MBIA Ins.)
2 California Hsg. Fin. Agy. Home Mtge. AAA 225,000 6.850 2017 08/01/01 225,868 238,183
Rev. Bonds, 1991 Ser. F (MBIA Ins.) @ 102.000
3 Clear Lake City, TX, Wtr. Auth. AAA 85,000 5.750 2015 03/01/01 76,467 86,377
Waterworks and Swr. Sys. Combination @ 100.000
Tax and Rev. Bonds (MBIA Ins.)
4 Colorado River, TX, Mun. Water Dist. AAA 325,000 6.625 2021(5) 01/01/01 323,944 347,614
Wtr. Sys. Rev. Bonds (Water Transmission @ 100.000
Fac. Proj.), Ser. 1991-A (AMBAC Ins.)
5 Hospital Auth. of Delaware Cnty., IN, AAA 655,000 6.625 2016 08/01/01 649,040 708,094
Ball Mem. Hosp. Rev. Bonds, Ser. 1991 @ 102.000
(AMBAC Ins.)
6 District of Columbia (Washington, AAA 585,000 6.875 2011(5) 06/01/00 590,400 632,865
D.C.), G.O. Bonds, Ser. 1991 A (MBIA @ 102.000
Ins.)
7 City of Jacksonville Beach, FL, Util. AAA 110,000 6.750 2020(5) 10/01/01 110,875 121,806
Rev. Bonds, Ser. 1991 (MBIA Ins.) @ 102.000
8 Maine Hlth. and Higher Educl. Fac. AAA 230,000 6.375 2021 07/01/01 221,854 247,906
Auth. Rev. Bonds, Ser. 1991 (FSA Ins.) @ 102.000
9 Montgomery Cnty. PA, Indl. Dev. Auth., AAA 1,455,000 6.700 2021 12/01/01 1,445,644 1,587,129
Poll. Ctl. Rev. Rfdg. Bonds, 1991 Ser. B @ 102.000
(Philadelphia Elec. Co. Proj.) (MBIA
Ins.)
10 Dormitory Auth. of the State of New AAA 1,450,000 7.250 2015(5) 05/15/00 1,509,015 1,584,009
York, State Univ. Educl. Fac. Rev. @ 102.000
Bonds, Ser. 1989 B (Financial Guaranty
Ins.)
</TABLE>
D - 6.
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
INSURED SERIES - 174
PORTFOLIO
As of November 30, 1997
<TABLE>
<CAPTION>
Rating of Optional
Portfolio No. and Title of Issues Face Redemption
Securities (1) (4) Amount Coupon Maturities(3) Provisions(3) Cost Value(2)
---------- --------- ----------- ----------- ------------ ------------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
11 Piedmont Mun. Pwr. Agy., SC, Elec. Rev. AAA $ 215,000 5.000 % 2018 01/01/02 $ 174,750 $ 211,775
Bonds, 1991 Rfdg. Ser. A (Financial @ 100.000
Guaranty Ins.)
AAA 1,285,000 5.000 2018 01/01/02 1,044,435 1,240,706
@ 100.000
12 Rhode Island Depositors Econ. Prot. AAA 205,000 7.100 2018(5) 08/01/01 210,695 228,329
Corp., Spec. Oblig. Bonds, 1991 Ser. A @ 102.000
(MBIA Ins.)
13 Charter County of Wayne, MI, Arpt. Rev. AAA 350,000 6.000 2020 12/01/00 325,143 361,536
Bonds (Detroit Metro. Wayne Cnty. @ 100.000
Arpt.), Ser. 1990 B (AMBAC Ins.)
14 Western Townships, MI, Util. Auth. AAA 1,500,000 6.750 2015 01/01/02 1,473,750 1,617,210
Sewage Disp. Sys. Rfdg. Bonds (Limited @ 100.000
Tax G.O.), Ser. 1991 (FSAM Ins.)
15 Wisconsin Hlth. and Educl. Fac. Auth. AAA 1,000,000 7.100 2019(5) 08/15/01 1,027,820 1,113,250
Rev. Bonds, Ser. 1991 (St. Luke's Med. @ 102.000
Ctr. Proj.) (MBIA Ins.)
----------- ---------- ----------
TOTAL $11,175,000 $10,949,150 $11,962,659
=========== ========== ==========
</TABLE>
See Notes to Portfolio.
D - 7.
<PAGE>
DEFINED ASSET FUNDS - MUNICIPAL INVESTMENT TRUST FUND,
INSURED SERIES - 174
NOTES TO PORTFOLIO
As of November 30, 1997
<TABLE>
<S> <C>
(1) The ratings of the bonds are by Standard & Poor's Ratings Group, or by Moody's
Investors Service, Inc. if followed by "(m)", or by Fitch Investors Service,
Inc. if followed by "(f)"; "NR" indicates that this bond is not currently rated
by any of the above-mentioned rating services. These ratings have been furnished
by the Evaluator but not confirmed with the rating agencies. See "Description
of Ratings" in Part B of this Prospectus.
(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.
(4) All securities are insured, either on an individual basis or by portfolio
insurance, by a municipal bond insurance company which has been assigned
"AAA" claims paying ability by Standard & Poor's. Accordingly, Standard &
Poor's has assigned a "AAA" rating to the securities. Securities covered by
portfolio insurance are rated "AAA" only as long as they remain in the Trust.
See "Risk Factors - Bonds Backed by Letters of Credit or Insurance" in this
Prospectus, Part B.
(5) Bonds with an aggregate face amount of $ 3,675,000 have been pre-refunded and
are expected to be called for redemption on the optional redemption provision
dates shown.
</TABLE>
D - 8.
<PAGE>
DEFINED ASSET FUNDS--
MUNICIPAL INVESTMENT TRUST FUND
INSURED SERIES
I want to learn more about automatic reinvestment in the Investment Accumulation
Program. Please send me information about participation in the Municipal 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. 644, NEW YORK, NY NECESSARY
IF MAILED
POSTAGE WILL BE PAID BY ADDRESSEE IN THE
THE CHASE MANHATTAN BANK (MITF) UNITED STATES
RETAIL PROCESSING DEPARTMENT
BOWLING GREEN STATION
P.O. BOX 5179
NEW YORK, NY 10274-5179
- --------------------------------------------------------------------------------
(Fold along this line.)
- --------------------------------------------------------------------------------
(Fold along this line.)
<PAGE>
DEFINED
ASSET FUNDSSM
SPONSORS: MUNICIPAL INVESTMENT
Merrill Lynch, TRUST FUND
Pierce, Fenner & Smith Incorporated Insured Series--174
Defined Asset Funds (A Unit Investment Trust)
P.O. Box 9051 PROSPECTUS PART A
Princeton, NJ 08543-9051 This Prospectus consists of a Part A and
(609) 282-8500 a Part B. This Prospectus does not
Smith Barney Inc. contain all of the information with
Unit Trust Department respect to the investment company set
388 Greenwich Street--23rd Floor forth in its registration statement and
New York, NY 10013 exhibits relating thereto which have
(212) 816-4000 been filed with the Securities and
PaineWebber Incorporated Exchange Commission, Washington, D.C.
1200 Harbor Boulevard under the Securities Act of 1933 and the
Weehawken, NJ 07087 Investment Company Act of 1940, and to
(201) 902-3000 which reference is hereby made. Copies
Prudential Securities Incorporated of filed material can be obtained from
One New York Plaza the Public Reference Section of the
New York, NY 10292 Commission, 450 Fifth Street, N.W.,
(212) 778-6164 Washington, D.C. 20549 at prescribed
Dean Witter Reynolds Inc. rates. The Commission also maintains a
Two World Trade Center--59th Floor Web site that contains information
New York, NY 10048 statements and other information
(212) 392-2222 regarding registrants such as Defined
EVALUATOR: Asset Funds that file electronically
Kenny S&P Evaluation Services, with the Commission at
a division of J. J. Kenny Co., Inc. http://www.sec.gov.
65 Broadway No person is authorized to give any
New York, NY 10006 information or to make any
TRUSTEE: representations with respect to this
The Chase Manhattan Bank investment company not contained in its
Customer Service Retail Department registration statement and exhibits
Bowling Green Station relating thereto; and any information or
P.O. Box 5187 representation not contained therein
New York, NY 10274-5187 must not be relied upon as having been
1-800-323-1508 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.
14078--2/98
