Insured California Portfolio Series 64
File No. 33-49207
Insured National Portfolio Series 42
File No. 33-27179
Investment Company Act No. 811-3676
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 4
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:
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA PORTFOLIO SERIES 64
INSURED NATIONAL PORTFOLIO SERIES 42
B. Name of Depositor:
DEAN WITTER REYNOLDS INC.
C. Complete address of Depositor's principal executive
office:
DEAN WITTER REYNOLDS INC.
Two World Trade Center
New York, New York 10048
D. Name and complete address of agent for service:
Mr. Michael D. Browne
Dean Witter Reynolds Inc.
Unit Trust Department
Two World Trade Center, 59th Floor
New York, New York 10048
Copy to:
Kenneth W. Orce, Esq.
Cahill Gordon & Reindel
80 Pine Street
New York, New York 10005
/x/ Check box if it is proposed that this filing should
become effective immediately upon filing pursuant to
paragraph(b) of Rule 485
<PAGE>
Pursuant to Rule 429(b) under the Securities Act of
1933, the Registration Statement and prospectus con-
tained herein relates to Registration Statements
Nos.:
33-49207
33-2717
<PAGE>
Cross Reference Sheet
Pursuant to Rule 404(c) of Regulation C
under the Securities Act of 1933
(Form N-8B-2 Items required by Instruction 1
as to Prospectus on Form S-6)
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
I. Organization and General Information
1. a) Name of Trust Front Cover
b) Title of Securities issued
2. Name and address of Depositor Table of Contents
3. Name and address of Trustee Table of Contents
4. Name and address of principal Table of Contents
Underwriter
5. Organization of Trust Introduction
6. Execution and termination of In- Introduction; Amendment
denture and Termination of the
Indenture
7. Changes of name *30
8. Fiscal Year Included in Form N-8B-2
9. Litigation *30
II. General Description of the Trust
and Securities of the Trust
10. General Information regarding
Trust's Securities and Rights of
Holders
a) Type of Securities Rights of Unit Holders
(Registered or Bearer)
b) Type of Securities Administration of the
(Cumulative or Distribu- Trust-Distribution
tive)
______________
*30 Not applicable, answer negative or not required
<PAGE>
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
c) Rights of Holders as to Redemption; Public Of-
Withdrawal or Redemption fering of Units-
Secondary Market
d) Rights of Holders as to Public Offering of
conversion, transfer, etc. Units-Secondary Market;
Exchange Option; Redemp-
tion; Rights of Unit
Holders-Certificates
e) Lapses or defaults with re- *30
spect to periodic payment
plan certificates
f) Voting rights as to Securi- Rights of Unit Holders-
ties under the Indenture Certain Limitations
g) Notice to Holders as to Amendment and Termina-
change in: tion of the Indenture
1) Assets of Trust Administration of the
Trust-Reports to Unit
Holders; The Trust-
Summary Description of
the Portfolios
2) Terms and Conditions Amendment and Termina-
of Trust's Securities tion of the Indenture
3) Provisions of Trust Amendment and Termina-
tion of the Indenture
4) Identity of Depositor Sponsor; Trustee
and Trustee
h) Security Holders' consent
required to change:
1) Composition of assets Amendment and Termina-
of Trust tion of the Indenture
2) Terms and conditions Amendment and Termina-
of Trust's Securities tion of the Indenture
3) Provisions of Inden- Amendment and Termina-
ture tion of the Indenture
____________________
*30 Not applicable, answer negative or not required
<PAGE>
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
4) Identity of Depositor *30
and Trustee
i) Other Provisions Cover of Prospectus; tax
status
11. Type of securities comprising The Trust-Summary De-
units scription of the Portfo-
lios; Objectives and Se-
curities Selection; The
Trust-Special Considera-
tions
12. Type of securities comprising *30
periodic payment certificates
13. a) Load, fees, expenses, etc. Summary of Essential In-
formation; Public Offer-
ing of Units-Public Of-
fering Price;-Profit of
Sponsor;-Volume Dis-
count; Expenses and
Charges
b) Certain information regard- *30
ing periodic payment cer-
tificates
c) Certain percentages Summary of Essential In-
formation; Public Offer-
ing of Units-Public Of-
fering Price; -Profit of
Sponsor; -Volume Dis-
count
d) Price differentials Public Offering of Units
- Public Offering Price
e) Certain other fees, etc. Rights of Unit Holders -
payable by holders Certificates
f) Certain profits receivable Redemption _ Purchase by
by depositor, principal un- the Sponsors of Units
derwriters, trustee or af- Tendered for Redemption
filiated persons
____________________
*30 Not applicable, answer negative or not required
<PAGE>
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
g) Ratio of annual charges to *30
income
14. Issuance of trust's securities Introduction; Rights of
Unit Holders - Certifi-
cates
15. Receipt and handling of payments Public Offering of
from purchasers Units-Profit of Sponsor
16. Acquisition and disposition of Introduction; Amendment
underlying securities and Termination of the
Indenture; Objectives
and Securities Selec-
tion; The Trust-Summary
Description of the Port-
folio; Sponsor-
Responsibility
17. Withdrawal or redemption by Se- Redemption; Public Of-
curity Holders fering of Units-
Secondary Market
18. a) Receipt and disposition of Administration of the
income Trust; Reinvestment Pro-
grams
b) Reinvestment of distribu- Reinvestment Programs
tions
c) Reserves or special fund Administration of the
Trust-Distribution
d) Schedule of distribution *30
19. Records, accounts and report Administration of the
Trust-Records and Ac-
counts; Reports to Unit
Holders
____________________
*30 Not applicable, answer negative or not required
<PAGE>
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
20. Certain miscellaneous provisions Amendment and Termina-
of the Indenture tion of the Indenture;
Sponsor-Limitation on
Liability
-Resignation; Trustee-
-Limitation on Liability
-Resignation
21. Loans to security holders *30
22. Limitations on liability Sponsor, Trustee;
Evaluator - Limitation
on Liability
23. Bonding arrangements Included on Form N-8B-2
24. Other material provisions of the *30
Indenture
III. Organization Personnel and
Affiliated Persons of Depositor
25. Organization of Depositor Sponsor
26. Fees received by Depositor Expenses and Charges-
fees; Public Offering of
Units-Profit of Sponsor
27. Business of Depositor Sponsor and Included in
Form N-8B-2
28. Certain information as to offi- Included in Form N-8B-2
cials and affiliated persons of
Depositor
29. Voting securities of Depositor Included in Form N-8B-2
30. Persons controlling Depositor *30
31. Payments by Depositor for cer- *30
tain other services
32. Payments by Depositor for cer- *30
tain other services rendered to
trust
____________________
*30 Not applicable, answer negative or not required
<PAGE>
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
33. Remuneration of employees of De- *30
positor for certain services
rendered to trust
34. Remuneration of other persons *30
for certain services rendered to
trust
IV. Distribution and Redemption of Securities
35. Distribution of trust's securi- Public Offering of
ties by states Units-Public Distribu-
tion
36. Suspension of sales of trust's *30
securities
37. Revocation of authority to dis- *30
tribute
38. a) Method of distribution
b) Underwriting agreements
c) Public Offering
of Units Selling agreements
39. a) Organization of principal Sponsor
underwriter
b) N.A.S.D. membership of
principal underwriter
40. Certain fees received by princi- Public Offering of
pal underwriter Units-Profit of Sponsor
41. a) Business of principal un- Sponsor
derwriter
b) Branch officers of princi- *30
pal underwriter
c) Salesman of principal un- *30
derwriter
42. Ownership of trust's securities *30
by certain persons
__________________
*30 Not applicable, answer negative or not required
<PAGE>
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
43. Certain brokerage commissions *30
received by principal under-
writer
44. a) Method of valuation Public Offering of Units
b) Schedule as to offering *30
price
c) Variation in offering price Public Offering of
to certain persons Units-Volume Discount;
Exchange option
45. Suspension of redemption rights *30
46. a) Redemption valuation Public Offering of
Units-Secondary Market;
Redemption
b) Schedule as to redemption *30
price
47. Maintenance of position in un- See items 10(d), 44 and
derlying securities 46
V. Information concerning the Trustee or Custodian
48. Organization and regulation of Trustee
Trustee
49. Fees and expenses of Trustee Expenses and Charges
50. Trustee's lien Expenses and Charges
VI. Information concerning Insurance
of Holders of Securities
51. a) Name and address of Insur- *30
ance Company
b) Type of policies *30
c) Type of risks insured and *30
excluded
d) Coverage of policies *30
____________________
*30 Not applicable, answer negative or not required
<PAGE>
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
e) Beneficiaries of policies *30
f) Terms and manner of cancel- *30
lation
g) Method of determining pre- *30
miums
h) Amount of aggregate premi- *30
ums paid
i) Who receives any part of *30
premiums
j) Other material provisions *30
of the Trust relating to
insurance
VII. Policy of Registrant
52. a) Method of selecting and Introduction; Objectives
eliminating securities from and Securities Selec-
the Trust tion; The Trust-Summary
Description of the Port-
folio; Sponsor-
Responsibility
b) Elimination of securities *30
from the Trust
c) Policy of Trust regarding Introduction; Objectives
substitution and elimina- and Securities Selec-
tion of securities tion; Sponsor-
Responsibility
d) Description of any funda- *30
mental policy of the Trust
53. Taxable status of the Trust Cover of Prospectus; Tax
Status
VIII. Financial and Statistical Information
54. Information regarding the *30
Trust's past ten fiscal years
____________________
*30 Not applicable, answer negative or not required
<PAGE>
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
55. Certain information regarding *30
periodic payment plan certifi-
cates
56. Certain information regarding
-
*30
periodic payment plan certifi
cates
57. Certain information regarding *30
periodic payment plan certifi-
cates
58. Certain information regarding *30
periodic payment plan certifi-
cates
59. Financial statements Statement of Financial
(Instruction 1(c) to Form S-6) Condition
____________________
*30 Not applicable, answer negative or not required
<PAGE>
LOGO
DEAN WITTER SELECT
MUNICIPAL TRUST
INSURED CALIFORNIA PORTFOLIO SERIES 64
INSURED NATIONAL PORTFOLIO SERIES 42
Standard & Poor's Corporation Rating: AAA
(A Unit Investment Trust)
_______________________________________________________________
These Trusts were formed for the purpose of providing interest
income which in the opinion of bond counsel is, under existing
law, excludable from gross income for Federal income tax pur-
poses (except in certain instances depending on the Unit Hold-
ers) and, in the case of the Insured California Trust only, is
exempt from State of California income taxes to individual Unit
Holders resident in the State of California, through investment
in a fixed portfolio consisting primarily of investment grade
long-term state, municipal and public authority debt obliga-
tions. The value of the Units of each of the Trusts will fluc-
tuate with the value of the Portfolio of underlying Securities.
The Units of the Insured California Trust and the Insured Na-
tional Trust are rated AAA by Standard & Poor's Corporation be-
cause all of the Securities have been irrevocably insured by
insurance provided by the respective Issuers thereof or ob-
tained by third parties. Minimum Purchase: 1 Unit.
_______________________________________________________________
This Prospectus consists of two parts. Part A contains a Sum-
mary of Essential Information and descriptive material relating
to the Trusts, and the portfolio and financial statements of
each Trust. Part B contains a general description of the
Trusts. Part A may not be distributed unless accompanied by
Part B.
_______________________________________________________________
The Initial Public Offering of Units in the Trusts has been
completed. The Units offered hereby are issued and outstanding
Units which have been acquired by the Sponsor either by pur-
chase from the Trustee of Units tendered for redemption or in
the Secondary Market.
_______________________________________________________________
Sponsor: LOGO DEAN WITTER REYNOLDS INC
<PAGE>
_______________________________________________________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
_______________________________________________________________
Read and retain both parts of this Prospectus for future refer-
ence.
Units of the Trusts are not deposits or obligations of, or
guaranteed or endorsed by, any bank, and the Units are not fed-
erally insured by the Federal Deposit Insurance Corporation,
Federal Reserve Board, or any other agency.
Prospectus Part A dated September 4, 1997
<PAGE>
THIS 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.
THE USE OF THE TERM "INSURED" IN THE NAME OF THIS TRUST DOES
NOT MEAN THAT THE TRUST UNITS ARE INSURED BY ANY GOVERNMENTAL
OR PRIVATE ORGANIZATION. THE TRUST UNITS ARE NOT INSURED.
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA PORTFOLIO SERIES 64
INSURED NATIONAL PORTFOLIO SERIES 42
TABLE OF CONTENTS
Page
PART A
Table of Contents..................................... A-1
Summary of Essential Information A-3
The Insured California Trust..................... A-11
The Insured National Trust....................... A-19
Independent Auditor's Report.......................... F-1
PART B
Introduction.......................................... 1
The Trust............................................. 2
Special Considerations........................... 2
Summary Description of the Portfolios............ 3
Insurance on the Securities in an Insured Trust....... 21
Objectives and Securities Selection................... 25
The Units............................................. 26
Tax Status............................................ 27
Public Offering of Units.............................. 32
Public Offering Price............................ 32
Public Distribution.............................. 33
Secondary Market................................. 34
Profit of Sponsor................................ 35
Volume Discount.................................. 35
Exchange Option....................................... 36
Reinvestment Programs................................. 37
Redemption............................................ 38
Tender of Units.................................. 38
Computation of Redemption Price per Unit......... 39
Purchase by the Sponsor of Units Tendered
for Redemption ................................ 39
Rights of Unit Holders................................ 40
Certificates..................................... 40
A-1
<PAGE>
Page
Certain Limitations.............................. 40
Expenses and Charges.................................. 40
Initial Expenses................................. 40
Fees............................................. 40
Other Charges.................................... 41
Administration of the Trust........................... 42
Records and Accounts............................. 42
Distribution..................................... 42
Distribution of Interest and Principal........... 42
Reports to Unit Holders.......................... 44
Sponsor............................................... 45
Trustee............................................... 47
Evaluator............................................. 48
Amendment and Termination of the Indenture............ 49
Legal Opinions........................................ 50
Auditors.............................................. 50
Bond Ratings.......................................... 50
Federal Tax Free vs. Taxable Income................... 54
Sponsor:
Dean Witter Reynolds Inc.
Two World Trade Center
New York, New York 10048
Evaluator:
Kenny S&P Evaluation Services
A Division of J.J. Kenny Co., Inc.
65 Broadway
New York, New York 10006
Trustee:
The Chase Manhattan Bank
270 Park Avenue
New York, New York 10017
NO PERSON IS AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS WITH RESPECT TO THIS INVESTMENT COMPANY NOT
CONTAINED IN THIS PROSPECTUS; AND ANY INFORMATION OR
REPRESENTATION NOT CONTAINED HEREIN MUST NOT BE RELIED UPON AS
HAVING BEEN 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.
A-2
<PAGE>
<TABLE>
<CAPTION>
SUMMARY OF ESSENTIAL INFORMATION
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA PORTFOLIO SERIES 64
As of June 30, 1997
<S> <C> <S> <C>
FACE AMOUNT OF SECURITIES $3,895,000.00 DAILY RATE AT WHICH ESTIMATED NET
INTEREST ACCRUES PER UNIT .0147%
NUMBER OF UNITS 3,887
ESTIMATED CURRENT RETURN (based on
FRACTIONAL UNDIVIDED INTEREST IN THE Public Offering Price)<F2> 5.113%
TRUST REPRESENTED BY EACH UNIT 1/3,887th ESTIMATED LONG TERM RETURN (based on
Public Offering Price)<F2> 5.105%
PUBLIC OFFERING PRICE
MONTHLY INTEREST DISTRIBUTIONS
Aggregate bid side evaluation
of Securities in the Trust $3,788,663.00 Estimated net annual interest rate
per Unit times $1,000 $52.74
Divided by 3,887 Units $ 974.70 Divided by 12 $ 4.40
Plus sales charge of 5.500% of RECORD DATE: The ninth day of each month
Public Offering Price (5.820%
of net amount invested in DISTRIBUTION DATE: The fifteenth
Securities) 56.73 day of each month
Public Offering Price per Unit 1,031.43 MINIMUM PRINCIPAL DISTRIBUTION: No
distribution need be made from the
Plus undistributed principal and Principal Account if balance therein
net investment income and accrued is less than $1 per Unit outstanding
interest 15.15<F1>
TRUSTEE'S ANNUAL FEE AND EXPENSES
Adjusted Public Offering Price $ 1,046.58 (including estimated expenses and
Evaluator's fee) $1.84 per $1,000
face amount of underlying Securities $ 1.84
SPONSOR'S REPURCHASE PRICE AND
REDEMPTION PRICE PER UNIT SPONSOR'S ANNUAL PORTFOLIO SUPERVISION
(based on bid side evaluation of FEE: Maximum of $.25 per $1,000
underlying Securities, $56.73 face amount of underlying Securities .25
less than Adjusted Public Offering
Price per Unit) $ 989.85 TOTAL ESTIMATED ANNUAL EXPENSES
PER UNIT $ 2.09
CALCULATION OF ESTIMATED NET
ANNUAL INTEREST RATE PER UNIT EVALUATOR'S FEE FOR EACH EVALUATION: $.40 per
(based on face amount of $1,000 issue of Security
per Unit)
Annual interest rate per Unit 5.483% EVALUATION TIME: 4:00 P.M. New York Time
Less estimated annual expenses per MANDATORY TERMINATION DATE: January 1, 2042
Unit ($2.09) expressed as a
percentage .209% DISCRETIONARY LIQUIDATION AMOUNT: The Trust
may be terminated by the Sponsor if the value
Estimated net annual interest rate of the portfolio of the Trust at any time is
per Unit 5.274% less than $1,578,000
<F1>Figure shown includes interest accrued (net of expenses) on the underlying Securities to the expected
date of settlement (normally three business days after purchase) for Units purchased on June 30, 1997.
<F2>The estimated current return and estimated long term return are increased for transactions entitled to a
reduced sales charge. (See "The Units - Estimated Annual Income and Current Return" and "Public Offering of
Units - Volume Discount" in Part B of this Prospectus.)
A-3
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SUMMARY OF ESSENTIAL INFORMATION
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED NATIONAL PORTFOLIO SERIES 42
As of June 30, 1997
<S> <C> <S> <C>
FACE AMOUNT OF SECURITIES $3,815,000.00 DAILY RATE AT WHICH ESTIMATED NET
INTEREST ACCRUES PER UNIT .0149%
NUMBER OF UNITS 3,810
ESTIMATED CURRENT RETURN (based on
FRACTIONAL UNDIVIDED INTEREST IN THE Public Offering Price)<F14> 5.162%
TRUST REPRESENTED BY EACH UNIT 1/3,810th
ESTIMATED LONG TERM RETURN (based on Public
Offering Price)<F14> 5.093%
PUBLIC OFFERING PRICE
Aggregate bid side evaluation MONTHLY INTEREST DISTRIBUTIONS
of Securities in the Trust $ 3,745,923.00
Estimated net annual interest rate
Divided by 3,810 Units $ 983.18 per Unit times $1,000 $53.63
Divided by 12 $ 4.47
Plus sales charge of 5.360% of
Public Offering Price (5.664% RECORD DATE: The ninth day of each month
of net amount invested in
Securities) 55.69 DISTRIBUTION DATE: The fifteenth
day of each month
Public Offering Price per Unit 1,038.87
MINIMUM PRINCIPAL DISTRIBUTION: No
Plus undistributed principal distribution need be made from the
and net investment income Principal Account if balance therein
and accrued interest 17.32<F13> is less than $1 per Unit outstanding
Adjusted Public Offering Price$ 1,056.19 TRUSTEE'S ANNUAL FEE AND EXPENSES (includ-
ing estimated expenses and Evaluator's
fee) $1.85 per $1,000 face amount
SPONSOR'S REPURCHASE PRICE AND of underlying Securities $ 1.85
REDEMPTION PRICE PER UNIT (based
on bid side evaluation of under- SPONSOR'S ANNUAL PORTFOLIO SUPERVISION
lying Securities, $55.69 less FEE: Maximum of $.25 per 1,000 face
than Adjusted Public Offering amount of underlying Securities .25
Price per Unit) $ 1,000.50
TOTAL ESTIMATED ANNUAL EXPENSES PER
UNIT $ 2.10
CALCULATION OF ESTIMATED NET
ANNUAL INTEREST RATE PER UNIT EVALUATOR'S FEE FOR EACH EVALUATION: $.40 per
(based on face amount of $1,000 issue of Security
per Unit)
Annual interest rate per Unit 5.573% EVALUATION TIME: 4:00 P.M. New York Time
Less estimated annual expenses per MANDATORY TERMINATION DATE: January 1, 2042
Unit ($2.10) expressed as a
percentage .210% DISCRETIONARY LIQUIDATION AMOUNT: The Trust
may be terminated by the Sponsor if the value
Estimated net annual interest of the portfolio of the Trust at any time is
rate per Unit 5.363% less than $1,580,000.
<F13>Figure shown includes interest accrued (net of expenses) on the underlying Securities to the expected
date of settlement (normally three business days after purchase) for Units purchased on June 30, 1997.
<F14>The estimated current return and estimated long term return are increased for transactions entitled to a
reduced sales charge. (See "The Units - Estimated Annual Income and Current Return" and "Public Offering of
Units - Volume Discount" in Part B of this Prospectus.)
A-4
</TABLE>
<PAGE>
SUMMARY OF ESSENTIAL INFORMATION
(Continued)
THE INSURED TRUSTS -- The Dean Witter Select Munici-
pal Trust, Insured California Portfolio Series 64 (the "Insured
California Trust") and Insured National Portfolio Series 42
(the "Insured National Trust") are two separate unit investment
trusts (collectively, the "Insured Trusts" or the "Trusts")
created on July 29, 1993 (the "Date of Deposit"), under the
laws of the State of New York pursuant to an Indenture as de-
fined in Part B. Each of the Trusts is composed of "investment
grade" long-term interest bearing municipal bonds (the
"Securities"). (For a description of the meaning of
"investment grade" securities, see: "Bond Ratings", in Part
B.) The objectives of each Trust are: (1) the receipt of in-
come which, under existing law, is excludable from gross income
for Federal income tax purposes (except in certain instances
depending on the Unit Holders) and, in the case of the Insured
California Trust only, is exempt from the State of California
income taxation to individual Unit Holders resident in the
State of California; and (2) the conservation of capital. The
payment of interest and the preservation of principal of each
of the Insured Trusts is dependent on the continuing ability of
the respective Issuers of the Securities or the bond insurers
thereof to meet their obligations to pay principal and interest
on the Securities. Therefore, there is no guarantee that the
objectives of the Insured Trusts will be achieved. All of the
Securities in each of the Portfolios are obligations of states
or of the counties, municipalities or public authorities
thereof. Interest on the Securities, in the opinion of bond
counsel or special tax counsel to the Issuers thereof, under
existing law, is excludable from gross income for Federal in-
come tax purposes (except in certain instances depending on the
Unit Holders) and, in the case of the Insured California Trust
only, is exempt from State of California income taxes when
owned by individual Unit Holders resident in the State of Cali-
fornia. (For a discussion of certain tax aspects of the In-
sured Trusts, see: "Tax Status", in Part B. For a discussion
of certain state tax aspects of the Insured California Trust,
see: "Special Considerations Regarding California Securities _
California Tax Status", herein.)
OFFERS TO SELL OR THE SOLICITATION OF ORDERS TO BUY
MAY ONLY BE MADE IN THOSE JURISDICTIONS IN WHICH THE UNITS OF
EACH TRUST HAVE BEEN REGISTERED. INVESTORS SHOULD CONTACT
ACCOUNT EXECUTIVES OF THE SPONSOR TO DETERMINE WHETHER THE
UNITS OF A PARTICULAR TRUST HAVE BEEN REGISTERED FOR SALE IN
THE STATE IN WHICH THEY RESIDE.
INSURANCE -- A policy of insurance guaranteeing the
scheduled payment of principal and interest ("Bond Insurance")
A-4
<PAGE>
has been obtained from the bond insurers indicated on the re-
spective "Schedule of Portfolio Securities", herein, and paid
for by the Issuers of the Securities, or by third parties, for
all the Securities in the Insured California Trust and the In-
sured National Trust. The policies of Bond Insurance are
non-cancellable and cover default in the payment of principal
and interest on the Securities so insured so long as such Secu-
rities remain outstanding, whether they are held in the Insured
California Trust or the Insured National Trust or not. Bond
Insurance on all Securities in the Insured California Trust and
the Insured National Trust relates only to the Securities in
such Insured California Trust or Insured National Trust and not
to the Units offered hereby. No representation is made herein
as to any bond insurer's ability to meet its obligations under
a policy of Bond Insurance relating to a Security in the In-
sured California Trust or the Insured National Trust. However,
as a result of such Bond Insurance, the Securities, as well as
the Units of the Insured California Trust and the Insured Na-
tional Trust, are rated "AAA" by Standard & Poor's Corporation.
There can be no assurance that such "AAA" ratings will be re-
tained. (See: "Insurance on the Securities in an Insured
Trust", in Part B.)
MONTHLY DISTRIBUTIONS -- Monthly distributions of
principal, premium, if any, and interest received by the In-
sured Trusts will be made on or shortly after the fifteenth day
of each month to Unit Holders of record on the ninth day of
such month. Alternatively, Unit Holders may elect to have
their monthly distributions reinvested in either of the Rein-
vestment Programs of the Sponsor, neither of which are insured.
(See: "Reinvestment Programs", in Part B.)
PUBLIC OFFERING PRICE -- The Public Offering Price
per Unit of each Insured Trust is calculated daily, and is
equal to the aggregate bid side evaluation of the underlying
Securities, divided by the number of Units outstanding, plus a
sales charge calculated by reference to "Sales Charge/Volume
Discount", below, plus the per Unit balance in the Interest and
Principal Accounts. Units are offered at the Public Offering
Price, plus accrued interest. (See: "Public Offering of
Units", in Part B.)
ESTIMATED CURRENT RETURN -- The Estimated Current Re-
turn shows the return based on the Public Offering Price and is
computed by multiplying the estimated net annual interest rate
per Unit (which shows the return based on a $1,000 face amount)
by $1,000 and dividing the result by the Public Offering Price
(not including accrued interest). The net annual interest rate
per Unit will vary with changes in the fees and expenses of the
Trustee, the Sponsor and the Evaluator and with the exchange,
redemption, sale or maturity of the underlying Securities. In
addition, the Public Offering Price will also vary with fluc-
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<PAGE>
tuations in the bid side evaluation of the underlying Securi-
ties. Therefore, it can be expected that the Estimated Current
Return will fluctuate in the future. (See: "The Units -- Es-
timated Annual Income and Current Return", in Part B.)
MARKET FOR UNITS -- The Sponsor, though not obligated
to do so, intends to maintain a market for the Units based on
the aggregate bid side evaluation of the underlying Securities,
as more fully described in Part B -- "Public Offering of
Units -- Secondary Market". If such market is not maintained,
a Unit Holder will be able to dispose of its Units through re-
demption at prices based on the aggregate bid side evaluation
of the underlying Securities. (See: "Redemption", in Part B.)
Market conditions may cause such prices to be greater or less
than the amount paid for Units.
SPECIAL CONSIDERATIONS -- An investment in Units of
the Insured Trusts should be made with an understanding of the
risks which an investment in fixed rate long term debt obliga-
tions may entail, including the risk that the value of the
Units will decline with increases in interest rates. The In-
sured California Trust is considered to be concentrated in
Electric and Power Securities and Health Care and Hospital Se-
curities (26.10% and 25.50%, respectively, of the aggregate
market value of the Insured California Trust Portfolio). The
Insured National Trust is considered to be concentrated in
Electric and Power Securities (33.08% of the aggregate market
value of the Insured National Trust Portfolio). (See: "The
Trust -- Special Considerations" and "The Trust -- Summary De-
scription of the Portfolios", in Part B. See also: "The In-
sured California Trust" and "The Insured National Trust",
herein, for a discussion of additional risks relating to Units
of such Insured Trust.)
OTHER INFORMATION -- The Securities in the Portfolio
of each Insured Trust were chosen in part on the basis of their
respective maturity dates. A long term Trust contains obliga-
tions maturing in 15 years or more from the Date of Deposit.
The maturity date of the Insured California Trust and the In-
sured National Trust is January 1, 2042. The latest maturity
of a Security in the Insured California Trust is August 2023;
and the average life to maturity (or date of pre-refunding of a
bond) of the Portfolio of Securities therein is 24.08 years.
The latest maturity of a Security in the Insured National Trust
is June 2023; and the average life to maturity (or date of pre-
refunding of a bond) of the Portfolio of Securities therein is
22.041 years. The actual maturity dates of each of the Securi-
ties contained in each Insured Trust are shown on the respec-
tive "Schedule of Portfolio Securities", herein.
The Trustee shall receive annually 75 cents per
$1,000 principal amount of Securities in each Insured Trust for
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<PAGE>
its services as Trustee. See: "Expenses and Charges", in Part
B, for a description of other fees and charges which may be in-
curred by an Insured Trust.
SALES CHARGE/VOLUME DISCOUNT -- The Public Offering
Price per Unit will be computed by dividing the aggregate of
the bid prices of the Securities in each Insured Trust by the
number of Units outstanding and then adding the appropriate
sales charge described below.
The sales charge will reflect different rates depend-
ing upon the maturities of the various underlying Securities.
The sales charge per Unit in the secondary market (the
"Effective Sales Charge") will be computed by multiplying the
Evaluator's determination of the bid side evaluation of each
Security by a sales charge determined in accordance with the
table set forth below based upon the number of years remaining
to the maturity of each such Security, totaling all such calcu-
lations, and dividing this total by the number of Units then
outstanding. In calculating the date of maturity, a Security
will be considered to mature on its stated maturity date un-
less: (a) the Security has been called for redemption or funds
or securities have been placed in escrow to redeem it on an
earlier call date, in which case the call date will be deemed
the date on which such Security matures; or (b) the Security is
subject to a mandatory tender, in which case the mandatory ten-
der date will be deemed the date on which such Security ma-
tures.
(as % of bid (as % of Public
Time to Maturity side evaluation) Offering Price)
Less than six months....... 0% 0%
six months to 1 year....... 0.756% 0.75%
over 1 year to 2 years..... 1.523% 1.50%
over 2 years to 4 years.... 2.564% 2.50%
over 4 years to 8 years.... 3.627% 3.50%
over 8 years to 15 years... 4.712% 4.50%
over 15 years.............. 5.820% 5.50%
The Effective Sales Charge per Unit for a sale in the
secondary market, as determined above, will be reduced on a
graduated scale for sales to any single purchaser on a single
day of the specified number of Units of a Trust set forth be-
low.
Dealer Concession
% of Effective as % of Effective
Number of Units Sales Charge Sales Charge
1-99.................. 100% 65%
100-249............... 95% 62%
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250-499............... 85% 55%
500-999............... 70% 45%
1,000 or more......... 55% 35%
To qualify for the reduced sales charge and conces-
sion applicable to quantity purchases, the selling dealer must
confirm that the sale is to a single purchaser, as described in
"Volume Discount" in Part B of the Prospectus.
Units purchased at an Effective Sales Charge (before
volume purchase discount) of less than 3.0927% of the Public
Offering Price (3.00% of the bid side evaluation of the Securi-
ties) will not be eligible for exchange at a reduced sales
charge described under the Exchange Option.
Dealers purchasing certain dollar amounts of Units
during the life of the Trusts may be entitled to additional
concessions. The Sponsor reserves the right, at any time and
from time to time, to change the level of dealer concessions.
For further information regarding the volume dis-
count, see: "Public Offering of Units -- Volume Discount", in
Part B.
Sales of Units may be made pursuant to distribution
arrangements with certain banks and/or other entities subject
to regulation by the Office of the Comptroller of the Currency
which are acting as agents for their customers. These banks
and/or entities are making Units of the Trust available to
their customers on an agency basis. A portion of the sales
charge paid by these customers is retained by or remitted to
such banks or entities in an amount equal to the fee customar-
ily received by an agent for acting in such capacity in connec-
tion with the purchase of Units. The Glass-Steagall Act pro-
hibits banks from underwriting certain securities, including
Units of the Trust; however, this Act does permit certain
agency transactions, and banking regulators have not indicated
that these particular agency transactions are impermissible un-
der this Act. In Texas, as well as certain other states, any
bank making Units available must be registered as a broker-
dealer in that State.
Note: "Auditors" in Part B is amended so that
"Deloitte & Touche" is replaced with "Deloitte & Touche LLP";
"Evaluator" in Part B is amended so that "Kenny S&P Evaluation
Services, a division of Kenny Information Systems, Inc." is
replaced with "Kenny S&P Evaluation Services, a Division of
J.J. Kenny Co., Inc."; and "Trustee" in Part B is amended so
that "United States Trust Company of New York, with its princi-
pal place of business at 114 West 47th Street, New York, New
York 10036, and its unit investment trust office at 4 New York
Plaza, New York, New York 10003" is replaced with "The Chase
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<PAGE>
Manhattan Bank, a New York Bank with its principal executive
office located at 270 Park Avenue, New York, New York 10017 and
its unit investment trust office at 4 New York Plaza, New York,
New York 10004". The reference to the fifth and five business
day in "Redemption -- Computation of Redemption Price per Unit"
and "Administration of the Trust -- Distribution of Interest
and Principal" in Part B is amended to read third and three,
respectively.
On May 31, 1997, Dean Witter, Discover & Co., Dean
Witter's former parent company, and Morgan Stanley Group Inc.
merger to form MCDWD. In connection with such merger, the cor-
porate name or DWDC was changed to Morgan Stanley, Dean Witter,
Discover & Co. ("MCDWD").
On December 20, 1995, Capital Guaranty Corporation
merged with a subsidiary of Financial Security Assurance Hold-
ings Ltd. In connection with such merger, (i) CGIC, the prin-
cipal operating subsidiary of Capital Guaranty Corporation, be-
came a wholly-owned subsidiary of FSA, the principal operating
subsidiary of Financial Security Assurance Holdings Ltd., and
(ii) the corporate name of CGIC was changed to Financial Secu-
rity Assurance of Maryland Inc.
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<PAGE>
THE INSURED CALIFORNIA TRUST
The Portfolio of the Insured California Trust con-
sists of eight issues of Securities, all of which were issued
by Issuers located in California. None of the issues of Secu-
rities is a general obligation of an Issuer. All eight issues
of Securities, while not backed by the taxing power of the Is-
suer, are payable from revenues or receipts derived from spe-
cific projects or other available sources. The Insured Cali-
fornia Trust contains the following categories of Securities:
Percentage of Aggregate
Market Value of Trust Portfolio
Category of Security (as of August 15, 1997
Electric and Power.......... 26.10%
Health Care and Hospital.... 25.50%
Sales Tax................... 11.86%
Tax Allocation.............. 13.23%
Water and Sewer............. 23.31%
Crossover Refunding......... 13.19%
Original Issue Discount..... 86.78%
See: "The Trust -- Summary Description of the Port-
folios", in Part B, for a summary of the investment risks asso-
ciated with the type of Securities contained in the Insured
California Trust. See: "Tax Status", in Part B, for a discus-
sion of certain tax considerations with regard to Original Is-
sue Discount.
The Securities in the Insured California Trust are
insured to maturity by the insurance obtained by the Issuers or
by third parties from the following insurance companies:
FGIC:23.04%; and MBIA:79.96.a
On August 15, 1997, based on the bid side of the mar-
ket, the aggregate market value of the Securities in the In-
sured California Trust was $3,840,560.85.
On August 15, 1997, all of the Securities in the In-
sured California Trust were rated "AAA" by Standard & Poor's
Corporation because of the Bond Insurance policies issued in
respect of such Securities. (See: the respective "Schedule of
Portfolio Securities", herein, and "Bond Ratings", in Part B.)
a Percentages computed on the basis of the aggregate bid
side evaluation of the Securities in the Insured Califor-
nia Trust on August 15, 1997.
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<PAGE>
A Security in the Portfolio may subsequently cease to be rated
or the rating assigned may be reduced below the minimum re-
quirements of the Insured California Trust for the acquisition
of Securities. While such events may be considered by the
Sponsor in determining whether to direct the Trustee to dispose
of the Security (see: "Sponsor -- Responsibility", in Part B),
such events do not automatically require the elimination of
such Security from the Portfolio.
SPECIAL CONSIDERATIONS REGARDING CALIFORNIA SECURITIES
Risk Factors
Potential purchasers of the Units of a State Trust
should consider the fact that the Trust's Portfolio consists
primarily of Securities issued by the state for which such
State Trust is named or its municipalities or authorities and
realize the substantial risks associated with an investment in
such Securities. Each State Trust is subject to certain addi-
tional risk factors:
The Sponsor believes the information summarized below
describes some of the more significant aspects of the State
Trust. The sources of such information are the official state-
ments of issuers as well as other publicly available documents.
While the Sponsor has not independently verified this informa-
tion, it has no reason to believe that such information is not
correct in all material respects.
California Trust
The State Trust will be affected by any political,
economic or regulatory developments affecting the ability of
California issuers to pay interest or repay principal on their
obligations. Various developments regarding the California
Constitution and State statutes which limit the taxing and
spending authority of California governmental entities may im-
pair the ability of California issuers to maintain debt service
on their obligations. The following information constitutes
only a brief summary and is not intended as a complete descrip-
tion.
In 1978, Proposition 13, an amendment to the Califor-
nia Constitution, was approved, limiting real property valua-
tion for property tax purposes and the power of local govern-
ments to increase real property tax revenues and revenues from
other sources. Legislation adopted after Proposition 13 pro-
vided for assistance to local governments, including their dis-
tribution of the then-existing surplus in the General Fund, re-
allocation of revenues to local governments, and assumption by
the State of certain local government obligations, However,
more recent legislation reduced such state assistance. There
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<PAGE>
can be no assurance that any particular level of State aid to
local governments will be maintained in future years. In
Nordinger v. Hahn, the United States Supreme Court upheld cer-
tain provisions of Proposition 13 against claims that it vio-
lated the equal protection clause of the Constitution.
In 1979, an amendment was passed adding Article XIIIB
to the State Constitution. As amended in 1990, Article XIIIB
imposes an "appropriations limit" on the spending authority of
the State and local government entities. In general, the ap-
propriations limit is based on certain 1978-79 expenditures,
adjusted annually to reflect changes in the cost of living,
population and certain services provided by State and local
government entities. The "appropriations limit" does not in-
clude appropriations for qualified capital outlay projects,
certain increases in transportation-related taxes, and certain
emergency appropriations.
If a government entity raises revenues beyond its
"appropriations limit" in any year, a portion of the excess
which cannot be appropriated within the following year's limit
must be returned to the entity's taxpayers within two subse-
quent fiscal years, generally by a tax credit, refund or tempo-
rary suspension of tax rates or fee schedules. "Debt service"
is excluded from these limitations, and is defined as
"appropriations required to pay the cost of interest and re-
demption charges, including the funding of any reserve or sink-
ing fund required in connection therewith, on indebtedness ex-
isting or legally authorized as of January 1, 1979 or on bonded
indebtedness thereafter approved [by the voters]." In addi-
tion, Article XIIIB requires the State Legislature to establish
a prudent State reserve, and to require the transfer of 50% of
excess revenue to the State School Fund; any amounts allocated
to the State School Fund will increase the appropriations
limit.
In 1986, California voters approved an initiative
statute known as Proposition 62. This initiative (i) requires
that any tax for general governmental purposes imposed by local
governments be approved by resolution or ordinance adopted by a
two-thirds vote of the governmental entity's legislative body
and by a majority vote of the electorate of the governmental
entity, (ii) requires that any special tax (defined as tax lev-
ied for other than general governmental purposes) imposed by
local governmental entity be approved by a two-thirds vote of
the voters within that jurisdiction, (iii) restricts the use of
revenues from a special tax to the purposes or for the service
for which the special tax was imposed, (iv) prohibits the impo-
sition of ad valorem taxes on real property by local governmen-
tal entities except as permitted by the Proposition 13 amend-
ment, (v) prohibits the imposition of transaction taxes and
sales taxes on the sale of real property by local governments,
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<PAGE>
(vi) requires that any tax imposed by a local government on or
after August 1, 1985, be ratified by a majority vote of the
electorate within two years of the adoption of the initiative
or be terminated by November 15, 1989, (vii) requires that, in
the event a local government fails to comply with the provi-
sions of this measure, a reduction of the amount of property
tax revenue allocated to such local government occurs in an
amount equal to the revenues received by such entity attribut-
able to the tax levied in violation of the initiative, and
(viii) permits these provisions to be amended exclusively by
the voters of the State of California.
In September 1995, the California Supreme court up-
held the constitutionality of Proposition 62, creating uncer-
tainty as to the legality of certain local taxes enacted by
noncharter cities in California without voter approval. It is
not possible to predict the impact of the decision.
In November 1988, California voters approved Proposi-
tion 98. This initiative requires that revenues in excess of
amounts permitted to be spend and which would otherwise be re-
turned by revisions of tax rates or fee schedules, be trans-
ferred and allocated (up to a maximum of 40%) to the State
School Fund and be expended solely for purposes of instruc-
tional improvement and accountability. No such transfer or al-
location of funds will be required if certain designated state
officials determine that annual student expenditures and class
size meet certain criteria as set forth in Proposition 98. Any
funds allocated to the State School Fund shall cause the appro-
priation limits to be annually increased for any such alloca-
tion made in the prior year. Proposition 98 also requires the
State of California to provide a minimum level of funding for
public schools and community colleges. The initiative permits
the enactment of legislation, by a two-thirds vote, to suspend
the minimum funding requirement for one year.
In November 1996, California voters approved Proposi-
tion 218. The initiative applied the provisions of Proposi-
tion 62 to all entities, including charter cities. It requires
that all taxes for general purposes obtain a simple majority
popular vote and that taxes for special purposes obtain a two-
thirds majority vote. Prior to the effectiveness of Proposi-
tion 218, charter cities could levy certain taxes such as tran-
sient occupancy taxes and utility user's taxes without a popu-
lar vote. Proposition 218 will also limit the authority of lo-
cal governments to impose property-related assessments, fees
and charges, requiring that such assessments be limited to the
special benefit conferred and prohibiting their use for general
governmental services. Proposition 218 also allows voters to
use their initiative power to reduce or repeal previously-
authorized taxes, assessments, fees and charges.
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<PAGE>
Certain tax-exempt securities in which the State
Trust may invest may be obligations payable solely from the
revenues of specific institutions, or may be secured by spe-
cific properties, which are subject to provisions of California
law that could adversely affect the holders of such obliga-
tions. For example, the revenues of California health care in-
stitutions may be subject to state laws, and California law
limits the remedies of a creditor secured by a mortgage or deed
of trust on real property.
From 1990 to 1993, California (the "State") faced the
worst economic, fiscal and budget conditions since the 1930s.
Construction, manufacturing (especially aerospace), exports and
financial services, among others, were severely affected. Job
losses were the worst of any post-war recession and have been
estimated to have exceeded 800,000. California's economy has
been recovering and growing steadily stronger since the start
of 1994. The rate of economic growth in California in 1996, in
terms of job gains, exceeded that of the rest of the United
States. The State added nearly 350,000 jobs during 1996, sur-
passing its pre-recession employment peak of 12.7 million jobs.
Another 380,000 jobs are expected to be created in 1997. The
unemployment rate, while still higher than the national aver-
age, fell to the low 6 percent range in mid-1997, compared to
over 10 percent during the recession. Many of the new jobs
were created in such industries as computer service, software
design, motion pictures and high technology manufacturing.
Business services, export trade and other manufacturing also
experienced growth. All major economic regions of the State
grew, with particularly large gains in the Silicon Valley re-
gion of Northern California. Personal income grew by over 7
percent or $55 billion in 1996. The residential construction
sector of the State's economy remained weak in 1996, with per-
mits for new housing increasing modestly from the previous
year. In addition, the restructuring and consolidation occur-
ring in California's aerospace and financial services indus-
tries, while aimed at making the companies involved more effi-
cient and competitive in the longer term, has produced some
negative economic consequences in the shorter term, including
an uncertain job outlook for many workers.
The recession affected State tax revenues, which mir-
ror economic conditions. It has also caused increased expendi-
tures for health and welfare programs. The State has also been
facing a structural imbalance in its budget with the largest
programs supported by the General Fund (K-12 schools and commu-
nity colleges, health, welfare and corrections) growing at
rates higher than the growth rates for the principal revenue
sources of the General Fund. (The General Fund, the State's
main operating fund, consists of revenues which are not re-
quired to be credited to any other fund.) As a result, the
State experienced recurring budget deficits. With the end of
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<PAGE>
the recession, the State's financial condition has improved in
the 1995-96 and 1996-97 fiscal years, with a combination of
better than expected revenues, slowdown in growth of social
welfare programs, and continued spending restraint. As of
June 30, 1997, the State's budget reserve had a positive cash
balance of $281 million. No deficit borrowing has occurred at
the end of the last two fiscal years and the State's cash flow
borrowing was limited to $3 billion in 1996-97.
On December 6, 1994, Orange County, California (the
"County"), together with its pooled investment funds (the
"Pools"), filed for protection under Chapter 9 of the federal
Bankruptcy Code. On June 12, 1996, Orange County emerged from
bankruptcy after the successful sale of $880 million in munici-
pal bonds allowed the county to pay off the last of its credi-
tors. On January 7, 1997, Orange County returned to the mu-
nicipal bond market with a $136 million bond issue maturing in
13 years at an insured yield of 7.23 percent.
Los Angeles County, the nation's largest county is
also experiencing financial difficulty. In August 1995 the
credit rating of the County's long-term bonds was downgraded
for the third time since 1992 as a result of, among other
things, severe operating deficits for the County's health care
system. In addition, the County was affected by an ongoing
loss of revenue caused by state property tax shift initiatives
in 1993 through 1995. In June, 1997, the Los Angeles County
Board of Supervisors approved an approximately $12 billion
1997-98 budget containing measures to eliminate a $157 million
deficit. The County's budgetary difficulties have continued
and their effect, as well as the effect of the improving Cali-
fornia economy, on the 1997-1998 budget is still uncertain.
1997-98 Fiscal Year Budget
On August 18, 1997, the Governor signed the 1997-98
Budget Act. The Budget Act anticipates General Fund revenues
and transfers of $52.5 billion (a 6.8 percent increase over the
final 1996-97 levels), and expenditures of $52.8 billion (an
8.0 percent increase from the 1996-97 levels). On a budgetary
basis, the budget reserve (SFEU) is projected to decrease from
$408 million at June 30, 1997 to $112 million at June 30, 1998.
(The expenditure figure assumes restoration of $200 million of
vetoed funding.) The Budget Act also includes Special Fund ex-
penditures of $14.4 billion (as against estimated Special Fund
revenues of $14.0 billion), and $2.1 billion of expenditures
from various Bond Funds. Following enactment of the Budget
Act, the State implemented its annual cash flow borrowing pro-
gram, issuing $3 billion of notes which mature on June 30,
1998.
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<PAGE>
Upon signing the Budget Act, the Governor vetoed
about $314 million of specific spending items, primarily in
health and welfare and education areas from both the General
Fund and Special Funds. The Governor announced that he was
prepared to restore about $200 million of education spending
upon satisfactory completion of legislation on the education
testing program. These issues will be taken up before the Leg-
islature adjourns in mid-September.
The following are major features of the 1997-98
Budget Act:
1. For the second year in a row, the Budget con-
tains a large increase in funding for K-14 education, reflect-
ing strong revenues which have exceeded initial budgeted
amounts. Part of the nearly $1.75 billion in increased spend-
ing is allocated to prior fiscal years.
2. The Budget Act reflects a $1.235 billion pension
case judgment payment, and returns funding of the State's pen-
sion contribution to the quarterly basis existing prior to the
deferral actions invalidated by the courts. In May, 1997, the
California Supreme Court in PERS v. Wilson made final a judg-
ment against the State requiring an immediate payment from the
General Fund to the Public Employees Retirement Fund ("PERF")
to make up certain deferrals in annual retirement fund contri-
butions which had been legislated in earlier years for budget
savings, and which the courts found to be unconstitutional. On
July 30, 1997, at the Governor's direction, the Controller
transferred $1.235 billion from the General Fund to the PERF in
satisfaction of the judgment, representing the principal amount
of the improperly deferred payments from 1995-96 and 1996-97.
No provision exists for any additional payments relating to
this court case.
3. Continuing the third year of a four-year
"compact" which the State Administration has made with higher
education units, funding from the General Fund for the Univer-
sity of California and California State University has in-
creased by about 6 percent ($121 million and $107 million, re-
spectively), and there was no increase in student fees.
4. Because of the effect of the pension payment,
most other State programs were continued at 1996-97 levels.
5. Health and welfare costs are contained, continu-
ing generally the grant levels from prior years, as part of the
initial implementation of the new CalWORKs welfare reform pro-
gram.
6. Unlike prior years, this Budget Act does not de-
pend on uncertain federal budget actions. About $300 million
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<PAGE>
in federal funds, already included in the federal FY 1997 and
1998 budgets, are included in the Budget Act, to offset incar-
ceration costs for illegal immigrants.
7. The Budget Act contains no tax increases, and no
tax reductions. The Renters Tax Credit was suspended for an-
other year, saving approximately $500 million. The Legislature
has not yet made any decision on conformity of State tax laws
to the recent federal tax reduction bill; a comprehensive re-
view of this subject will take place next year.
THE FOREGOING DISCUSSION OF THE 1997-98 FISCAL YEAR
BUDGET IS BASED IN LARGE PART ON STATEMENTS MADE IN A RECENT
"PRELIMINARY OFFICIAL STATEMENT" DISTRIBUTED BY THE STATE OF
CALIFORNIA. IN THAT DOCUMENT, THE STATE INDICATED THAT ITS
DISCUSSION OF THE FISCAL YEAR BUDGET IS BASED ON ESTIMATES AND
PROJECTIONS OF REVENUES AND EXPENDITURES FOR THE CURRENT FISCAL
YEAR AND MUST NOT BE CONSTRUED AS STATEMENTS OF FACT. THE
STATE NOTED FURTHER THAT THE ESTIMATES AND PROJECTIONS ARE
BASED UPON VARIOUS ASSUMPTIONS WHICH MAY BE AFFECTED BY
NUMEROUS FACTORS, INCLUDING FUTURE ECONOMIC CONDITIONS IN THE
STATE AND THE NATION, AND THAT THERE CAN BE NO ASSURANCE THAT
THE ESTIMATES WILL BE ACHIEVED.
State Indebtedness
As of August 1, 1997, the State had over $17.82 bil-
lion aggregate amount of its general obligation bonds outstand-
ing. General obligation bond authorizations in an aggregate
amount of approximately $8.26 billion remained unissued as of
August 1, 1997. The State also builds and acquires capital fa-
cilities through the use of lease purchase borrowing. As of
August 1, 1997, the State had approximately $6.17 billion of
outstanding Lease-Purchase Debt.
In addition to the general obligation bonds, State
agencies and authorities had approximately $19.09 billion ag-
gregate principal amount of revenue bonds and notes outstanding
as of June 30, 1997. Revenue bonds represent both obligations
payable from State revenue-producing enterprises and projects,
which are not payable from the General Fund, and conduit obli-
gations payable only from revenues paid by private users of fa-
cilities financed by such revenue bonds. Such enterprises and
projects include transportation projects, various public works
and exposition projects, educational facilities (including the
California State University and University of California sys-
tems), housing, health facilities and pollution control facili-
ties.
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<PAGE>
Litigation
The State is a party to numerous legal proceedings,
many of which normally occur in governmental operations. In
addition, the State is involved in certain other legal proceed-
ings that, if decided against the State, might require the
State to make significant future expenditures or impair future
revenue sources.
Ratings
Because of the State's continuing budget problems,
the State's General Obligation bonds were downgraded in July
1994 to A1 from Aa by Moody's, to A from A+ by Standard &
Poor's, and to A from AA by Fitch. All three rating agencies
expressed uncertainty in the State's ability to balance the
budget by 1996. However, in 1996, citing California's improv-
ing economy and budget situation, both Fitch and Standard &
Poor's raised their ratings from A to A+.
The Sponsor believes the information summarized above
describes some of the more significant aspects relating to the
California Trust. The sources of such information are Prelimi-
nary Official Statements and Official Statements relating to
the State's general obligation bonds and the State's revenue
anticipation notes, or obligations of other issuers located in
the State of California, or other publicly available documents.
Although the Sponsor has not independently verified this infor-
mation, it has no reason to believe that such information is
not correct in all material respects.
California Tax Status
On the Date of Deposit, special California counsel
for the Sponsor rendered an opinion under the then existing
California state income tax law which read as follows:
The Insured California Trust is not an association
taxable as a corporation under the income tax laws of the
State of California;
The income, deductions and credits against tax of the
Insured California Trust will be treated as the income,
deductions and credits against tax of the holders of Units
in the Insured California Trust under the income tax laws
of the State of California;
Interest on the bonds held by the Insured California
Trust to the extent that such interest is exempt from
taxation under California law will not lose its character
as tax-exempt income merely because that income is passed
through to the holders of Units; however, a corporation
A-18
<PAGE>
subject to the California franchise tax is required to
include that interest income in its gross income for pur-
poses of determining its franchise tax liability;
Each holder of a Unit in the Insured California Trust
will have a taxable event when the Insured California
Trust disposes of a bond (whether by sale, exchange, re-
demption, or payment at maturity) or when the Unit holder
redeems or sells his Units. The total tax cost of each
Unit to a holder of a Unit in the Insured California Trust
is allocated among each of the bond issues held in the In-
sured California Trust (in accordance with the proportion
of the Insured California Trust comprised by each bond is-
sue) in order to determine the holder's per Unit tax cost
for each bond issue, and the tax cost reduction require-
ments relating to amortization of bond premium will apply
separately to the per Unit tax cost of each bond issue.
Therefore, under some circumstances, a holder of a Unit
may realize taxable gain when the Insured California Trust
disposes of a bond or the holder's Units are sold or re-
deemed for an amount equal to or less than his original
cost of the bond or Unit;
Each holder of a Unit in the Insured California Trust
is deemed to be the owner of a pro rata portion of the In-
sured California Trust under the personal property tax
laws of the State of California;
Each Unit holder's pro rata ownership of the bonds
held by the Insured California Trust, as well as the in-
terest income therefrom, is exempt from California per-
sonal property taxes; and
Amounts paid in lieu of interest on defaulted bonds
held by the Trustee under policies of insurance issued
with respect to such bonds will be excludable from gross
income for California income tax purposes if, and to the
same extent as, those amounts would have been so exclud-
able if paid as interest by the respective issuer.
In the opinion of Messrs. Paul, Hastings, Janofsky &
Walker LLP, special California counsel to the Sponsor, no
change in law has occurred since the Date of Deposit which
would require a change in the above opinion.
A-19
<PAGE>
THE INSURED NATIONAL TRUST
The Portfolio of the Insured National Trust consists
of nine issues of Securities, which were issued by Issuers lo-
cated in six states. Two issues of Securities (approximately
26.44% of the aggregate market value of the Insured National
Trust Portfolio) were issued by Issuers located in Illinois.
Two issues of Securities are each a general obligation of an
Issuer. Seven issues of Securities, while not backed by the
taxing power of the Issuer, are payable from revenues or re-
ceipts derived from specific projects or other available
sources. The Insured National Trust contains the following
categories of Securities:
Percentage of Aggregate
Market Value of Trust Portfolio
Category of Securities (as of August 15, 1997)
Other Revenue 13.08%
Electric and Power.......... 33.08%
General Obligation.......... 14.01%
Health Care and Hospital.... 13.25%
Sales Tax................... 13.34%
Special Tax................. 13.24%
Original Issue Discount..... 60.97%
See: "The Trust -- Summary Description of the Port-
folios", in Part B, for a summary of the investment risks asso-
ciated with the type of Securities contained in the Insured Na-
tional Trust. See: "Tax Status", in Part B, for a discussion
of certain tax considerations with regard to Original Issue
Discount.
Of the Original Issue Discount bonds in the Insured
National Trust, approximately 2.62% of the aggregate principal
amount of the Securities in the Insured National Trust (or .82%
of the market value of all Securities in the Insured National
Trust on August 15, 1997) are zero coupon bonds (including
bonds known as multiplier bonds, money multiplier bonds, capi-
tal accumulator bonds, compound interest bonds and discount ma-
turity payment bonds).
A-20
<PAGE>
The Securities in the Insured National Trust are in-
sured to maturity by the insurance obtained by the Issuers or
by third parties from the following insurance companies:
FGIC:39.61%; and MBIA:60.39%.b
On August 15, 1997, based on the bid side of the mar-
ket, the aggregate market value of Securities in the Insured
National Trust was $3,794,170.20.
On August 15, 1997, all of the Securities in the In-
sured National Trust were rated "AAA" by Standard & Poor's Cor-
poration because of the Bond Insurance policies issued in re-
spect of such Securities. (See: the respective "Schedule of
Portfolio Securities", herein, and "Bond Ratings," in Part B.)
A Security in the Portfolio may subsequently cease to be rated
or the rating assigned may be reduced below the minimum re-
quirements of the Insured National Trust for the acquisition of
Securities. While such events may be considered by the Sponsor
in determining whether to direct the Trustee to dispose of the
Security (see: "Sponsor -- Responsibility", in Part B), such
events do not automatically require the elimination of such Se-
curity from the Portfolio.
b Percentages computed on the basis of the aggregate bid
side evaluation of the Securities in the Insured National
Trust on August 15, 1997.
A-21
<PAGE>
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
THE UNIT HOLDERS, SPONSOR AND TRUSTEE
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA PORTFOLIO SERIES 64
INSURED NATIONAL PORTFOLIO SERIES 42
We have audited the statements of financial condition and schedules of
portfolio securities of the Dean Witter Select Municipal Trust Insured
California Portfolio Series 64 and Insured National Portfolio Series 42 as
of June 30, 1997, and the related statements of operations and changes in
net assets for each of the three years in the period then ended. These
financial statements are the responsibility of the Trustee (see Footnote
(a)(1)). 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.
Our procedures included confirmation of the securities owned as of June 30,
1997 as shown in the statements of financial condition and schedules of
portfolio securities by correspondence with The Chase Manhattan Bank, the
Trustee. An audit also includes assessing the accounting principles used
and the 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 the Dean Witter Select
Municipal Trust Insured California Portfolio Series 64 and Insured National
Portfolio Series 42 as of June 30, 1997, and the results of their operations
and the changes in their net assets for each of the three years in the
period then ended in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
August 4, 1997
New York, New York
F-1
</AUDIT-REPORT>
<PAGE>
STATEMENT OF FINANCIAL CONDITION
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA PORTFOLIO SERIES 64
June 30,1997
TRUST PROPERTY
Investments in municipal bonds at market value (cost
$3,761,971) (Note (a) and Schedule of Portfolio
Securities Notes (4) and (5)) $3,788,663
Accrued interest receivable 93,389
Total 3,882,052
LIABILITIES AND NET ASSETS
Less Liabilities:
Cash overdraft 28,347
Accrued Trustee's fees and expenses 5,856
Accrued Sponsor's fees 2,021
Total liabilities 36,224
Net Assets:
Balance applicable to 3,887 Units of fractional
undivided interest outstanding (Note (c)):
Capital, less unrealized market
appreciation of $26,692 $3,788,663
Undistributed principal and net
investment income (Note (b)) 57,165
Net assets $3,845,828
Net asset value per Unit ($3,845,828 divided by 3,887 Units) $ 989.41
See notes to financial statements
F-2
<PAGE>
STATEMENTS OF OPERATIONS
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA PORTFOLIO SERIES 64
For the years ended June 30,
1997 1996 1995
Investment income - interest $215,410 $216,000 $216,000
Less Expenses:
Trustee's fees and expenses 7,239 7,259 7,261
Sponsor's fees 984 986 986
Total expenses 8,223 8,245 8,247
Investment income - net 207,187 207,755 207,753
Net gain on investments:
Realized loss on securities sold or
redeemed (1,969) - -
Net unrealized market appreciation 126,273 86,683 155,207
Net gain on investments 124,304 86,683 155,207
Net increase in net assets resulting from
operations $331,491 $294,438 $362,960
See notes to financial statements
F-3
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA PORTFOLIO SERIES 64
For the years ended June 30,
1997 1996 1995
Operations:
Investment income - net $ 207,187 $ 207,755 $ 207,753
Realized loss on securities sold
or redeemed (1,969) - -
Net unrealized market appreciation 126,273 86,683 155,207
Net increase in net assets
resulting from operations 331,491 294,438 362,960
Less Distributions to Unit Holders:
Investment income - net (207,048) (207,395) (207,349)
Total distributions (207,048) (207,395) (207,349)
Less Capital Share Transactions:
Redemption of 43 Units and 15 Units,
respectively (40,141) (13,734) -
Accrued interest on redemption (642) (265) -
Total capital share
transactions (40,783) (13,999) -
Net increase in net assets 83,660 73,044 155,611
Net assets:
Beginning of year 3,762,168 3,689,124 3,533,513
End of year (including undistrib-
uted principal and net investment
income of $57,165 and $49,778, and
net investment income of $63,417,
respectively) $3,845,828 $3,762,168 $3,689,124
See notes to financial statements
F-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA PORTFOLIO SERIES 64
June 30, 1997
(a) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Trust is registered under the Investment Company Act of 1940 as a
Unit Investment Trust. The following is a summary of the significant
accounting policies of the Trust:
(1) Basis of Presentation
The Trustee has custody of and responsibility for all accounting and
financial books, records, financial statements and related data of
the Trust and is responsible for establishing and maintaining a
system of internal controls directly related to, and designed to
provide reasonable assurance as to the integrity and reliability
of, financial reporting of the Trust. The Trustee is also
responsible for all estimates and accruals reflected in the Trust's
financial statements. The Evaluator determines the price for each
underlying Security included in the Trust's Portfolio of Securities
on the basis set forth in Part B of this Prospectus, "Public
Offering of Units - Public Offering Price". Under the Securities
Act of 1933 ("the Act"), as amended, the Sponsor is deemed to be an
issuer of the Trust Units. As such, the Sponsor has the
responsibility of an issuer under the Act with respect to financial
statements of the Trust included in the Trust's Registration
Statement under the Act and amendments thereto.
(2) Investments
Investments are stated at market value as determined by the
Evaluator based on the bid side evaluations on the last day of
trading during the period, except that value on the date of deposit
(July 29, 1993) represents the cost of investments to the Trust
based on the offering side evaluations as of the day prior to the
date of deposit.
(3) Income Taxes
The Trust is not an association taxable as a corporation for Federal
income tax purposes; accordingly, no provision is required for such
taxes.
(4) Expenses
The Trust pays annual Trustee's fees, estimated expenses,
Evaluator's fees, and annual Sponsor's portfolio supervision fees
and may incur additional charges as explained under "Expenses and
Charges - Fees" and "- Other Charges" in Part B of this Prospectus.
F-5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA PORTFOLIO SERIES 64
June 30, 1997
(b) DISTRIBUTIONS
Interest received by the Trust is distributed to the Unit Holders on or
shortly after the fifteenth day of each month after deducting applicable
expenses. Receipts other than interest are distributed as explained in
"Administration of the Trust - Distribution of Interest and Principal"
in Part B of this Prospectus.
(c) ORIGINAL COST TO INVESTORS
The original cost to investors represents the aggregate initial public
offering price as of the date of deposit (July 29, 1993) exclusive of
accrued interest, computed on the basis set forth under "Public Offering
of Units - Public Offering Price" in Part B of this Prospectus.
A reconciliation of the original cost of Units to investors to the net
amount applicable to investors as of June 30, 1997 follows:
Original cost to investors $4,008,353
Less: Gross underwriting commissions (sales charge) (196,382)
Net cost to investors 3,811,971
Cost of securities sold or redeemed (50,000)
Unrealized market appreciation 26,692
Net amount applicable to investors $3,788,663
(d) OTHER INFORMATION
Selected data for a Unit of the Trust during each year:
For the years ended June 30,
1997 1996 1995
Net investment income distributions
during year $ 52.78 $ 52.74 $ 52.56
Net asset value at end of year $989.41 $957.29 $935.14
Trust units outstanding at end of year 3,887 3,930 3,945
F-6
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF PORTFOLIO SECURITIES
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA PORTFOLIO SERIES 64
June 30, 1997
Port- Optional
folio Rating Face Coupon Maturity Sinking Fund Refunding Market
No. Title of Securities <F3> Amount Rate Date Redemptions<F5> Redemptions<F4> Value<F6><F7>
<S><C> <C> <C> <C> <C> <C> <C> <C>
1. California Statewide Com-
munities Development Author-
ity, Sutter Health Obligated
Group Certificates of Parti-
cipation (MBIA Insured) <F6> AAA $ 500,000 5.500% 08/15/23 08/15/14@100 08/15/03@102 $ 483,170
2. California Statewide Com-
munities Development Author-
ity, Catholic Healthcare
West Obligated Group Certif-
icates of Participation
(MBIA Insured) <F6> AAA 500,000 5.500 07/01/23 07/01/14@100 07/01/03@102 483,240
3. Lancaster Redevelopment
Agency Combined Redevelop-
ment Project Areas (Fire
Protection Facilities Proj-
ect), Tax Allocation Bonds,
Issue of 1993 (MBIA Insured)
<F6> AAA 500,000 5.750 08/01/23 08/01/19@100 08/01/03@102 503,825
4. Los Angeles County Trans-
portation Commission Sales
Tax Revenue Refunding Bonds,
Series 1991-B (FGIC Insured)
<F7> AAA 450,000 5.750 07/01/18 07/01/16@100 07/01/01@100 452,709
5. Northern California Power
Agency Hydroelectric Proj-
ect Number One Revenue
Bonds, 1992 Refunding Series
A (MBIA Insured) <F6> AAA 500,000 5.500 07/01/23 07/01/19@100 07/01/02@100 484,550
6. Placer County Water Agency
Water Revenue Certificates
of Participation (1993
Refunding Project) (MBIA
Insured) <F6> AAA 500,000 5.000 07/01/23 07/01/22@100 07/01/03@102 454,090
7. Southern California Public
Power Authority Transmission
Project Revenue Bonds, 1992
Subordinate Refunding Series
(Southern Transmission Proj-
ect) (MBIA Insured) <F6> AAA 500,000 5.750 07/01/21 NONE 07/01/02@102 503,430
8. Three Valleys Municipal
Water District Refunding
Revenue Certificates of Par-
ticipation, Series 1993
(FGIC Insured) <F7> AAA 445,000 5.000 11/01/14 11/01/11@100 11/01/03@102 423,649
$3,895,000 $3,788,663
See notes to schedule of portfolio securities
F-7
</TABLE>
<PAGE>
NOTES TO SCHEDULE OF PORTFOLIO SECURITIES
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA PORTFOLIO SERIES 64
June 30, 1997
[FN]
<F3> All ratings are provided by Standard & Poor's Corporation. A brief
description of applicable Security ratings is given under "Bond
Ratings" in Part B of this Prospectus.
<F4> There is shown under this heading the date on which each issue of
Securities is redeemable by the operation of optional call
provisions and the redemption price for that date; unless otherwise
indicated, each issue continues to be redeemable at declining
prices thereafter but not below par. Securities listed as non-
callable, as well as Securities listed as callable, may also be
redeemable at par under certain circumstances from special
redemption payments.
<F5> There is shown under this heading the date on which an issue of
Securities is subject to scheduled sinking fund redemption and the
redemption price on such date.
<F6> The market value of the Securities as of June 30, 1997 was
determined by the Evaluator on the basis of bid side evaluations
for the Securities on such date.
<F7> At June 30, 1997, the unrealized market appreciation of all
Securities was comprised of the following:
Gross unrealized market appreciation $26,692
Gross unrealized market depreciation -
Unrealized market appreciation $26,692
The aggregate cost of the Securities for Federal income tax purposes
was $3,761,971 at June 30, 1997.
<F8> Insured by Municipal Bond Insurance Association ("MBIA").
<F9> Insured by Financial Guaranty Insurance Company ("FGIC").
F-8
<PAGE>
STATEMENT OF FINANCIAL CONDITION
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED NATIONAL PORTFOLIO SERIES 42
June 30, 1997
TRUST PROPERTY
Investments in municipal bonds at market value
(amortized cost $3,704,476) (Note (a) and
Schedule of Portfolio Securities Notes (4) and (5)) $3,745,923
Accrued interest receivable 65,974
Cash 6,350
Total 3,818,247
LIABILITIES AND NET ASSETS
Less Liabilities:
Accrued Trustee's fees and expenses 5,922
Accrued Sponsor's fees 2,104
Total liabilities 8,026
Net Assets:
Balance applicable to 3,810 Units of fractional
undivided interest outstanding (Note (c)):
Capital, less net unrealized market
appreciation of $41,447 $3,745,923
Undistributed principal and net investment
income (Note (b)) 64,298
Net assets $3,810,221
Net asset value per Unit ($3,810,221 divided by 3,810 Units) $ 1,000.06
See notes to financial statements
F-9
<PAGE>
STATEMENTS OF OPERATIONS
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED NATIONAL PORTFOLIO SERIES 42
For the years ended June 30,
1997 1996 1995
Investment income - interest $219,736 $221,782 $221,697
Less Expenses:
Trustee's fees and expenses 7,234 7,307 7,306
Sponsor's fees 978 988 988
Total expenses 8,212 8,295 8,294
Investment income - net 211,524 213,487 213,403
Net gain on investments:
Realized loss on securities sold or
redeemed (2,867) - -
Net unrealized market appreciation 114,993 77,481 148,038
Net gain on investments 112,126 77,481 148,038
Net increase in net assets resulting from
operations $323,650 $290,968 $361,441
See notes to financial statements
F-10
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED NATIONAL PORTFOLIO SERIES 42
For the years ended June 30,
1997 1996 1995
Operations:
Investment income - net $ 211,524 $ 213,487 $ 213,403
Realized loss on securities sold or
redeemed (2,867) - -
Net unrealized market appreciation 114,993 77,481 148,038
Net increase in net assets
resulting from operations 323,650 290,968 361,441
Less Distributions to Unit Holders:
Investment income - net (209,804) (211,890) (211,878)
Total distributions (209,804) (211,890) (211,878)
Less Capital Share Transactions:
Redemption of 137 Units and 3 Units,
respectively (132,446) (2,984) -
Accrued interest on redemption (2,327) (57) -
Total capital share
transactions (134,773) (3,041) -
Net (decrease) increase in net assets (20,927) 76,037 149,563
Net assets:
Beginning of year 3,831,148 3,755,111 3,605,548
End of year (including undistributed
principal and net investment in-
come of $64,298 and $64,840, and
undistributed net investment in-
come of $67,817, respectively) $3,810,221 $3,831,148 $3,755,111
See notes to financial statements
F-11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED NATIONAL PORTFOLIO SERIES 42
June 30, 1997
(a) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Trust is registered under the Investment Company Act of 1940 as a
Unit Investment Trust. The following is a summary of the significant
accounting policies of the Trust:
(1) Basis of Presentation
The Trustee has custody of and responsibility for all accounting and
financial books, records, financial statements and related data of
the Trust and is responsible for establishing and maintaining a
system of internal controls directly related to, and designed to
provide reasonable assurance as to the integrity and reliability
of, financial reporting of the Trust. The Trustee is also
responsible for all estimates and accruals reflected in the Trust's
financial statements. The Evaluator determines the price for each
underlying Security included in the Trust's Portfolio of Securities
on the basis set forth in Part B of this Prospectus, "Public
Offering of Units - Public Offering Price". Under the Securities
Act of 1933 ("the Act"), as amended, the Sponsor is deemed to be an
issuer of the Trust Units. As such, the Sponsor has the
responsibility of an issuer under the Act with respect to financial
statements of the Trust included in the Trust's Registration
Statement under the Act and amendments thereto.
(2) Investments
Investments are stated at market value as determined by the
Evaluator based on the bid side evaluations on the last day of
trading during the period, except that value on the date of deposit
(July 29, 1993) represents the cost of investments to the Trust
based on the offering side evaluations as of the day prior to the
date of deposit.
(3) Income Taxes
The Trust is not an association taxable as a corporation for Federal
income tax purposes; accordingly, no provision is required for such
taxes.
(4) Expenses
The Trust pays annual Trustee's fees, estimated expenses,
Evaluator's fees, and annual Sponsor's portfolio supervision fees
and may incur additional charges as explained under "Expenses and
Charges - Fees" and "- Other Charges" in Part B of this Prospectus.
F-12
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED NATIONAL PORTFOLIO SERIES 42
June 30, 1997
(b) DISTRIBUTIONS
Interest received by the Trust is distributed to the Unit Holders on or
shortly after the fifteenth day of each month after deducting applicable
expenses. Receipts other than interest are distributed as explained in
"Administration of the Trust - Distribution of Interest and Principal" in
Part B of this Prospectus.
(c) ORIGINAL COST TO INVESTORS
The original cost to investors represents the aggregate initial public
offering price as of the date of deposit (July 29, 1993) exclusive of
accrued interest, computed on the basis set forth under "Public Offering
of Units - Public Offering Price" in Part B of this Prospectus.
A reconciliation of the original cost of Units to investors to the net
amount applicable to investors as of June 30, 1997 follows:
Original cost to investors $4,033,113
Less: Gross underwriting commissions (sales charge) (197,605)
Net cost to investors 3,835,508
Cost of securities sold or redeemed (137,000)
Net unrealized market appreciation 41,447
Accumulated interest accretion 5,968
Net amount applicable to investors $3,745,923
(d) OTHER INFORMATION
Selected data for a Unit of the Trust during each year
For the years ended June 30,
1997 1996 1995
Net investment income distributions
during year $ 53.62 $ 53.66 $ 53.64
Net asset value at end of year $1,000.06 $970.65 $950.66
Trust units outstanding at end of
year 3,810 3,947 3,950
F-13
<PAGE>
<TABLE>
<CAPTION>
SCHEDULE OF PORTFOLIO SECURITIES
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED NATIONAL PORTFOLIO SERIES 42
June 30, 1997
Port- Optional
folio Rating Face Coupon Maturity Sinking Fund Refunding Market
No. Title of Securities <F15> Amount Rate Date Redemptions<F17> Redemptions<F16> Value<F18><F19>
<S><C> <C> <C> <C> <C> <C> <C> <C>
1. Los Angeles County Trans-
portation Commission, Cali-
fornia, Sales Tax Revenue
Refunding Bonds, Series
1991-B (FGIC Insured) <F21> AAA $ 500,000 5.750% 07/01/18 07/01/16@100 07/01/01@100 $ 503,010
2. Riverbank Elementary
School District, California,
1993 General Obligation
Bonds, Series A (MBIA
Insured) <F20> AAA 100,000 0.000 08/01/18 08/01/11@100 NONE 30,509
3. Chicago, Illinois, General
Obligation Bonds (Emergency
Telephone System), Series
1993 (FGIC Insured) <F21> AAA 500,000 5.625 01/01/23 01/01/14@100 01/01/03@102 489,075
4. Illinois Health Facilities
Authority Revenue Refunding
Bonds, Series 1992 C (Fran-
ciscan Sisters Health Care
Corporation) (MBIA Insured)
<F20> AAA 500,000 5.750 09/01/18 09/01/12@100 09/01/02@102 495,725
5. Indianapolis, Indiana, Gas
Utility System Revenue
Refunding Bonds, Series
1993A (FGIC Insured) <F21> AAA 500,000 5.375 06/01/14 06/01/09@100 06/01/03@102 490,455
6. Farmington, New Mexico,
5 7/8% Pollution Control
Refunding Revenue Bonds
(Southern California Edison
Company Four Corners Proj-
ect), 1993 Series A (MBIA
Insured) <F20> AAA 465,000 5.875 06/01/23 NONE 06/01/03@102 470,692
7. North Carolina Eastern
Municipal Power Agency,
Power System Revenue
Bonds, Refunding Series
1993 B (FGIC Insured) <F21> AAA 250,000 6.250 01/01/23 07/01/22@100 01/01/03@102 265,657
8. North Carolina Eastern
Municipal Power Agency Num-
ber 1, Catawba Electric Rev-
enue Bonds, Series 1992
(MBIA Insured) <F20> AAA 500,000 5.750 01/01/15 01/01/13@100 01/01/03@100 505,865
9. Pennsylvania Intergovern-
mental Cooperation Authority
Special Tax Revenue Bonds
(City of Philadelphia Fund-
ing Program), Series of 1993
(MBIA Insured) <F20> AAA 500,000 5.625 06/15/23 06/15/16@100 06/15/03@100 494,935
$3,815,000 $3,745,923
See notes to schedule of portfolio securities
F-14
</TABLE>
<PAGE>
NOTES TO SCHEDULE OF PORTFOLIO SECURITIES
DEAN WITTER SELECT MUNICIPAL TRUST
INSURED NATIONAL PORTFOLIO SERIES 42
June 30, 1997
[FN]
<F15> All ratings are provided by Standard & Poor's Corporation. A brief
description of applicable Security ratings is given under "Bond
Ratings" in Part B of this Prospectus.
<F16> There is shown under this heading the date on which each issue of
Securities is redeemable by the operation of optional call
provisions and the redemption price for that date; unless otherwise
indicated, each issue continues to be redeemable at declining
prices thereafter but not below par. Securities listed as non-
callable, as well as Securities listed as callable, may also be
redeemable at par under certain circumstances from special
redemption payments.
<F17> There is shown under this heading the date on which an issue of
Securities is subject to scheduled sinking fund redemption and the
redemption price on such date.
<F18> The market value of the Securities as of June 30, 1997 was
determined by the Evaluator on the basis of bid side evaluations
for the Securities on such date.
<F19> At June 30, 1997, the net unrealized market appreciation of all
Securities was comprised of the following:
Gross unrealized market appreciation $42,647
Gross unrealized market depreciation (1,200)
Net unrealized market appreciation $41,447
The amortized cost of the Securities for Federal income tax purposes
was $3,704,476 at June 30, 1997.
<F20> Insured by Municipal Bond Insurance Association ("MBIA").
<F21> Insured by Financial Guaranty Insurance Company ("FGIC").
F-15
<PAGE>
(MODULE)
(NAME) DWSMTPARTB941
(CIK) 0000840581
(CCC) uit*59fl
(/MODULE
<PAGE>
CONTENTS OF REGISTRATION STATEMENT
This registration statement comprises the following
documents:
The facing sheet.
The Cross Reference Sheet.
The Prospectus.
The signatures.
Consents of the Paul, Hastings, Janofsky & Walker LLP
(included in Exhibit 8), the Evaluator, Independent
Auditors and Standard & Poor's Ratings Services; all
other consents were previously filed.
The following exhibits:
8. Opinion of Paul, Hastings, Janofsky &
Walker LLP.
23. 1a. Consent of Kenny S&P Evaluation Services, a
division of J.J. Kenny Co., Inc.
1b. Consent of Independent Auditors.
1d. Consent of Standard & Poor's Rating Serv-
ices, a division of The McGraw-Hill Compa-
nies, Inc.
27. 1. Financial Data Schedule of
Dean Witter Select Municipal Trust,
Insured California Portfolio Series 64.
2. Financial Data Schedule of
Dean Witter Select Municipal Trust,
Insured National Portfolio Series 42
<PAGE>
CONSENT OF COUNSEL
The consents of counsel to the use of their names in
the Prospectus included in this Registration Statement are con-
tained in their opinions filed as Exhibit 5 and Exhibit 8 to
this Registration Statement
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of
1933, the registrant, Dean Witter Select Municipal Trust, In-
sured California Portfolio Series 64 and Insured National Port-
folio Series 42, certifies that it meets all of the require-
ments for effectiveness of this Registration Statement pursuant
to Rule 485(b) under the Securities Act of 1933 and has duly
caused this Post-Effective Amendment No. 4 to the Registration
Statement to be signed on its behalf by the undersigned, there-
unto duly authorized, all in The City of New York and State of
New York on the 4th day of September, 1997.
DEAN WITTER SELECT MUNICIPAL TRUST,
INSURED CALIFORNIA PORTFOLIO SERIES 64
INSURED NATIONAL PORTFOLIO SERIES 42
(Registrants)
By: DEAN WITTER REYNOLDS INC.
(Depositor)
Thomas Hines
Thomas Hines
Authorized Signatory
Pursuant to the requirements of the Securities Act of
1933, this Post-Effective Amendment No. 4 to the Registration
Statement has been signed on behalf of Dean Witter Reynolds
Inc., the Depositor, by the following person in the following
capacities and by the following persons who constitute a major-
ity of the Depositor's Board of Directors in The City of New
York and State of New York on this 4th day of September, 1997.
DEAN WITTER REYNOLDS INC.
Name Office
Philip J. Purcell Chairman and Chief )
Executive Officer )
and Directorc )
By:
Thomas Hines
Thomas Hines
Attorney-in-factc
c Executed copies of the Powers of Attorney filed by a ma-
jority of the Board of Directors of Dean Witter Reynolds
Inc. have been previously filed
<PAGE>
Name Office
Richard M. DeMartini Director***
Robert J. Dwyer Director***
Christine A. Edwards Director***
James F. Higgins Director***
Charles A. Fiumefreddo Director**
Mitchell M. Merin Director*
Stephen R. Miller Director***
Richard F. Powers III Director*
Philip J. Purcell Director***
Thomas C. Schneider Director**
William B. Smith Director**
__________________
* Executed copies of the Powers of Attorney have been filed
with the Securities and Exchange Commission in connection
with Amendment No. 1 to the Registration Statement on Form
S-6 for Dean Witter Select Equity Trust, Select 10 Indus-
trial Portfolio 97-1, File No. 333-16839.
** Executed copies of Powers of Attorney have been filed with
the Securities and Exchange Commission in connection with
Amendment No. 1 to the Registration Statement on Form S-6
for Dean Witter Select Equity Trust, Select 10 Industrial
Portfolio 96-4, File No. 333-10499.
*** Executed copies of Powers of Attorney have been filed with
the Securities and Exchange Commission in connection with
the Registration Statement on Form S-6 for Dean Witter Se-
lect Equity Trust, Select 10 International Series 95-1,
File No. 33-56389.
EXHIBIT INDEX
EXHIBIT NO. TITLE OF DOCUMENT
8. Opinion of Paul, Hastings, Janofsky &
Walker LLP
23. 1a. Consents of Kenny S&P Evaluation Services,
a division of J.J. Kenny Co., Inc.
1b. Consent of Deloitte & Touche LLP
1d. Consent of Standard & Poor's Ratings Serv-
ices, a division of The McGraw-Hill Compa-
nies, Inc.
27. 1. Financial Data Schedule of
Dean Witter Select Municipal Trust,
Insured California Portfolio Series 64
2. Financial Data Schedule of
Dean Witter Select Municipal Trust,
Insured National Portfolio Series 42
Exhibit 8
Letterhead of Paul, Hastings, Janofsky & Walker LLP
August 27, 1997
Dean Witter Reynolds Inc.
Two World Trade Center
New York, NY 10048
Re: Dean Witter Select Municipal Trust,
Insured California Portfolio Series 64
Gentlemen:
Pursuant to your request, we have reviewed the opin-
ion expressed by prior California counsel to you regarding cer-
tain California income and property tax matters with respect to
Dean Witter Select Municipal Trust, Insured California Portfo-
lio Series 64 (the "Insured California Trust"). We are of the
opinion that such opinion, a copy of which is set forth in the
Prospectus comprising a part of Post-Effective Amendment No. 4
to the Form S-6 Registration Statement of the Insured Califor-
nia Trust (SEC File No. 33-49207), remains valid, that no
change has occurred which would require a change to such opin-
ion, and that you may rely on it in connection with the filing
of such Post Effective Amendment.
We consent to the use of our name under the caption
"California Tax Status" in such Prospectus and to the filing of
this opinion as an exhibit to such Post Effective Amendment.
Very truly yours,
Paul, Hastings, Janofsky & Walker LLP
Paul, Hastings, Janofsky & Walker LLP
<PAGE>
<PAGE>
Exhibit 23.1a.
Letterhead of KENNY S&P EVALUATION SERVICES
A Division of J.J. Kenny Co., Inc.
September 4, 1997
Dean Witter Reynolds Inc.
Two World Trade Center
New York, NY 10048
Re: Dean Witter Select Municipal Trust,
Insured California Portfolio Series 64
Gentlemen:
We have examined the post-effective Amendment to the
Registration Statement File No. 33-49207 for the above-
captioned trust. We hereby acknowledge that Kenny S&P Evalua-
tion Services, a division of J.J. Kenny Co., Inc. is currently
acting as the evaluator for the trust. We hereby consent to
the use in the Amendment of the reference to Kenny S&P Evalua-
tion Services, a division of J.J. Kenny Co., Inc. as evaluator.
In addition, we hereby confirm that the ratings indi-
cated in the above-referenced Amendment to the Registration
Statement for the respective bonds comprising the trust portfo-
lio are the ratings currently indicated in our KENNYBASE data-
base.
You are hereby authorized to file a copy of this let-
ter with the Securities and Exchange Commission.
Sincerely,
Frank A. Ciccotto
Frank A. Ciccotto
Vice President
<PAGE>
Letterhead of KENNY S&P EVALUATION SERVICES
A Division of J.J. Kenny Co., Inc.
September 4, 1997
Dean Witter Reynolds Inc.
Two World Trade Center
New York, NY 10048
Re: Dean Witter Select Municipal Trust,
Insured National Portfolio Series 42
Gentlemen:
We have examined the post-effective Amendment to the
Registration Statement File No. 33-27179 for the above-
captioned trust. We hereby acknowledge that Kenny S&P Evalua-
tion Services, a division of J.J. Kenny Co., Inc. is currently
acting as the evaluator for the trust. We hereby consent to
the use in the Amendment of the reference to Kenny S&P Evalua-
tion Services, a division of J.J. Kenny Co., Inc. as evaluator.
In addition, we hereby confirm that the ratings indi-
cated in the above-referenced Amendment to the Registration
Statement for the respective bonds comprising the trust portfo-
lio are the ratings currently indicated in our KENNYBASE data-
base.
You are hereby authorized to file a copy of this let-
ter with the Securities and Exchange Commission.
Sincerely,
Frank A. Ciccotto
Frank A. Ciccotto
Vice President
<PAGE>
Exhibit 23.1b.
CONSENT OF INDEPENDENT AUDITORS
We consent to the use of our report, dated August 4, 1997, accompanying the
financial statements of the Dean Witter Select Municipal Trust Insured
California Portfolio Series 64 and Insured National Portfolio Series 42
included herein and to the reference to our Firm as experts under the
heading "Auditors" in the prospectus which is a part of this registration
statement.
DELOITTE & TOUCHE LLP
September 4, 1997
New York, New York
<PAGE>
Exhibit 23.1d.
Letterhead of Standard & Poor's Ratings Services,
A Division of The McGraw-Hill Companies, Inc.
September 4, 1997
Dean Witter Reynolds Inc.
Two World Trade Center
New York, New York 10048
Re: Dean Witter Select Municipal Trust
Insured California Series 64
Gentlemen:
It is our understanding that you are filing with the
Securities and Exchange Commission a Post-Effective Amendment
to the above captioned Trust, SEC file number 33-49211.
Since the portfolio is composed solely of securities
covered by bond insurance policies that insure against default
in the payment of principal and interest on the securities for
so long as they remain outstanding and such policies have been
issued by one or more insurance companies which have been as-
signed "AAA" claims paying ability ratings by Standard &
Poor's, we reaffirm the assignment of a "AAA" rating to the
units of the trust and a "AAA" rating to the securities con-
tained in the trust.
You have permission to use the name of Standard &
Poor's Ratings Services, a division of The McGraw-Hill Compa-
nies, Inc. and the above-assigned ratings in connection with
your dissemination of information relating to these units, pro-
vided that it is understood that the ratings are not "market"
ratings nor recommendations to buy, hold, or sell the units of
the trust or the securities in the trust. Further, it should
be understood that the rating on the units does not take into
account the extent to which fund expenses or portfolio asset
sales for less than the fund's purchase price will reduce pay-
ment to the unit holders of the interest and principal required
to be paid on the portfolio assets. Standard & Poor's reserves
the right to advise its own clients, subscribers, and the pub-
lic of the ratings. Standard & Poor's relies on the sponsor
and its counsel, accountants, and other experts for the accu-
racy and completeness of the information submitted in connec-
<PAGE>
-2-
tion with the ratings. Standard & Poor's does not independ-
ently verify the truth or accuracy of any such information.
This letter evidences our consent to the use of the
name of Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc. in connection with the rating as-
signed to the units in the amendment referred to above. How-
ever, this letter should not be construed as a consent by us,
within the meaning of Section 7 of the Securities Act of 1933,
to the use of the name of Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc. in connection with
the ratings assigned to the securities contained in the trust.
You are hereby authorized to file a copy of this letter with
the Securities and Exchange Commission.
Please be certain to send a copy of your final pro-
spectus as soon as it becomes available. Should you not re-
ceive it within a reasonable time after the closing or should
it not conform to the representations made to us, we reserve
the right to withdraw the rating.
We are pleased to have had the opportunity to be of
service to you. If we can be of further help, please do not
hesitate to call upon us.
Sincerely,
Sanford B. Bragg
Sanford B. Bragg
Managing Director
<PAGE>
Letterhead of Standard & Poor's,
A Division of The McGraw-Hill Companies, Inc.
September 4, 1997
Dean Witter Reynolds Inc.
Two World Trade Center
New York, New York 10048
Re: Dean Witter Select Municipal Trust,
Insured National Portfolio Series 42
Gentlemen:
We have received the post-effective amendment to the
registration statement SEC file number 33-27179 for the above-
captioned trust.
Since the portfolio is composed solely of securities
covered by bond insurance policies that insure against default
in the payment of principal and interest on the securities for
so long as they remain outstanding and such policies have been
issued by one or more insurance companies which have been as-
signed "AAA" claims paying ability ratings by Standard &
Poor's, we reaffirm the assignment of a "AAA" rating to the
units of the trust and a "AAA" rating to the securities con-
tained in the trust.
You have permission to use the name of Standard &
Poor's Ratings Services, a division of The McGraw-Hill Compa-
nies, Inc. and the above-assigned ratings in connection with
your dissemination of information relating to these units, pro-
vided that it is understood that the ratings are not "market"
ratings nor recommendations to buy, hold, or sell the units of
the trust or the securities in the trust. Further, it should
be understood that the rating on the units does not take into
account the extent to which fund expenses or portfolio asset
sales for less than the fund's purchase price will reduce pay-
ment to the unit holders of the interest and principal required
to be paid on the portfolio assets. Standard & Poor's reserves
the right to advise its own clients, subscribers, and the pub-
lic of the ratings. Standard & Poor's relies on the sponsor
and its counsel, accountants, and other experts for the accu-
racy and completeness of the information submitted in connec-
<PAGE>
-2-
tion with the ratings. Standard & Poor's does not independ-
ently verify the truth or accuracy of any such information.
This letter evidences our consent to the use of the
name of Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc. in connection with the rating as-
signed to the units in the amendment referred to above. How-
ever, this letter should not be construed as a consent by us,
within the meaning of Section 7 of the Securities Act of 1933,
to the use of the name of Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc. in connection with
the ratings assigned to the securities contained in the trust.
You are hereby authorized to file a copy of this letter with
the Securities and Exchange Commission.
We are pleased to have had the opportunity to be of
service to you. If we can be of further help, please do not
hesitate to call upon us.
Sincerely,
Sanford B. Bragg
Sanford B. Bragg
Managing Director
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND> THE SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE FINANCIAL
STATEMENTS FOR DEAN WITTER SELECT
MUNICIPAL TRUST INSURED CALIFORNIA
PORTFOLIO SERIES 64 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS
<RESTATED>
<CIK> 0000894085
<NAME> DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA PORTFOLIO SERIES 64
<SERIES>
<NAME> DEAN WITTER SELECT MUNICIPAL TRUST
INSURED CALIFORNIA PORTFOLIO SERIES
<NUMBER> 64
<MULTIPLIER> 1
<FISCAL-YEAR-END> Jun-30-1997
<PERIOD-START> Jul-1-1996
<PERIOD-END> Jun-30-1997
<PERIOD-TYPE> YEAR
<INVESTMENTS-AT-COST> 3,761,971
<INVESTMENTS-AT-VALUE> 3,788,663
<RECEIVABLES> 93,389
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,882,052
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 36,224
<TOTAL-LIABILITIES> 36,224
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,756,127
<SHARES-COMMON-STOCK> 3,887
<SHARES-COMMON-PRIOR> 3,930
<ACCUMULATED-NII-CURRENT> 63,009
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 26,692
<NET-ASSETS> 3,845,828
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 215,410
<OTHER-INCOME> 0
<EXPENSES-NET> 8,223
<NET-INVESTMENT-INCOME> 207,187
<REALIZED-GAINS-CURRENT> (1,969)
<APPREC-INCREASE-CURRENT> 126,273
<NET-CHANGE-FROM-OPS> 331,491
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 207,048
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 43
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 83,660
<ACCUMULATED-NII-PRIOR> 63,512
<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>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND> THE SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE FINANCIAL
STATEMENTS FOR DEAN WITTER SELECT
MUNICIPAL TRUST INSURED NATIONAL
PORTFOLIO SERIES 42 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS
<RESTATED>
<CIK> 0000835181
<NAME> DEAN WITTER SELECT MUNICIPAL TRUST
INSURED NATIONAL PORTFOLIO SERIES 42
<SERIES>
<NAME> DEAN WITTER SELECT MUNICIPAL TRUST
INSURED NATIONAL PORTFOLIO SERIES
<NUMBER> 42
<MULTIPLIER> 1
<FISCAL-YEAR-END> Jun-30-1997
<PERIOD-START> Jul-1-1996
<PERIOD-END> Jun-30-1997
<PERIOD-TYPE> YEAR
<INVESTMENTS-AT-COST> 3,704,476
<INVESTMENTS-AT-VALUE> 3,745,923
<RECEIVABLES> 65,974
<ASSETS-OTHER> 6,350
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,818,247
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 8,026
<TOTAL-LIABILITIES> 8,026
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,703,179
<SHARES-COMMON-STOCK> 3,810
<SHARES-COMMON-PRIOR> 3,947
<ACCUMULATED-NII-CURRENT> 65,595
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 41,447
<NET-ASSETS> 3,810,221
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 218,113
<OTHER-INCOME> 1,623
<EXPENSES-NET> 8,212
<NET-INVESTMENT-INCOME> 211,524
<REALIZED-GAINS-CURRENT> (2,867)
<APPREC-INCREASE-CURRENT> 114,993
<NET-CHANGE-FROM-OPS> 323,650
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 209,804
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 137
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (20,927)
<ACCUMULATED-NII-PRIOR> 67,825
<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>
