<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JULY 19, 1999
REGISTRATION NO. 33-26716
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------------------------
POST-EFFECTIVE AMENDMENT NO. 10
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:
GOVERNMENT SECURITIES INCOME FUND
U.S. GOVERNMENT ZERO COUPON BOND SERIES 3
DEFINED ASSET FUNDS
(A UNIT INVESTMENT TRUST)
B. NAMES OF DEPOSITORS:
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
C. COMPLETE ADDRESSES OF DEPOSITORS' PRINCIPAL EXECUTIVE OFFICES:
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
UNIT INVESTMENT TRUSTS
POST OFFICE BOX 9051
PRINCETON, NJ 08543-9051
D. NAMES AND COMPLETE ADDRESSES OF AGENTS FOR SERVICE:
TERESA KONCICK, ESQ.
P.O. BOX 9051
PRINCETON, NJ 08543-9051
COPIES TO:
PIERRE DE SAINT PHALLE,
ESQ.
450 LEXINGTON AVENUE
NEW YORK, NY 10017
The issuer has registered an indefinite number of Units under the Securities Act
of 1933 pursuant to Rule 24f-2 and filed the Rule 24f-2 Notice for the most
recent fiscal year March 11, 1999.
Check box if it is proposed that this filing will become effective on July 20,
1999 pursuant to of Rule 485(b). / x /
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- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JULY 8, 1999
REGISTRATION NO. 33-26716
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------------------------
POST-EFFECTIVE AMENDMENT NO. 10
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:
GOVERNMENT SECURITIES INCOME FUND
U.S. GOVERNMENT ZERO COUPON BOND SERIES 8
DEFINED ASSET FUNDS
(A UNIT INVESTMENT TRUST)
B. NAMES OF DEPOSITORS:
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
C. COMPLETE ADDRESSES OF DEPOSITORS' PRINCIPAL EXECUTIVE OFFICES:
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
UNIT INVESTMENT TRUSTS
POST OFFICE BOX 9051
PRINCETON, NJ 08543-9051
D. NAMES AND COMPLETE ADDRESSES OF AGENTS FOR SERVICE:
TERESA KONCICK, ESQ.
P.O. BOX 9051
PRINCETON, NJ 08543-9051
COPIES TO:
PIERRE DE SAINT PHALLE,
ESQ.
450 LEXINGTON AVENUE
NEW YORK, NY 10017
The issuer has registered an indefinite number of Units under the Securities Act
of 1933 pursuant to Rule 24f-2 and filed the Rule 24f-2 Notice for the most
recent fiscal year March 11, 1999.
Check box if it is proposed that this filing will become effective on July 16,
1999 pursuant to of Rule 485(b). / x /
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
DEFINED ASSET FUNDSSM
- --------------------------------------------
- ----------------------------------
GOVERNMENT SECURITIES INCOME FUND
U.S. GOVERNMENT ZERO COUPON BOND
SERIES 3 AND 8
UNIT INVESTMENT TRUSTS
O PORTFOLIOS OF STRIPPED U.S. TREASURY
SECURITIES
O DESIGNED FOR SAFETY OF CAPITAL AND HIGH YIELD
TO MATURITY
O INVESTMENT ALTERNATIVES FOR EMPLOYEE BENEFIT
PLANS ESTABLISHED BY MERRILL LYNCH & CO., INC.
AND AFFILIATES
-------------------------------------------------
The Securities and Exchange Commission has not
approved or disapproved these Securities or
SPONSOR: passed upon the adequacy of this prospectus. Any
Merrill Lynch, representation to the contrary is a criminal
Pierce, Fenner & Smith offense.
Incorporated Prospectus dated July 19, 1999.
<PAGE>
- --------------------------------------------------------------------------------
Def ined Asset FundsSM
Defined Asset FundsSM is America's oldest and largest family of unit investment
trusts, with over $160 billion sponsored over the last 28 years. Defined Asset
Funds has been a leader in unit investment trust research and product
innovation. Our family of Funds helps investors work toward their financial
goals with a full range of quality investments, including municipal, corporate
and government bond portfolios, as well as domestic and international equity
portfolios.
Defined Asset Funds offer a number of advantages:
o A disciplined strategy of buying and holding with a long-term view is the
cornerstone of Defined Asset Funds.
o Fixed portfolio: Defined Funds follow a buy and hold investment strategy;
funds are not managed and portfolio changes are limited.
o Defined Portfolios: We choose the stocks and bonds in advance, so you know
what you're investing in.
o Professional research: Our dedicated research team seeks out stocks or bonds
appropriate for a particular fund's objectives.
o Ongoing supervision: We monitor each portfolio on an ongoing basis.
No matter what your investment goals, tolerance for risk or time horizon,
there's probably a Defined Asset Fund that suits your investment style. Your
financial professional can help you select a Defined Asset Fund that works best
for your investment portfolio.
THE FINANCIAL INFORMATION IN THIS PROSPECTUS IS AS OF THE EVALUATION DATE, MARCH
31, 1999.
CONTENTS
PAGE
-----------
Risk/Return Summary..................................... 3
What You Can Expect From Your Investment................ 5
Distributions at Maturity............................ 5
Records and Reports.................................. 5
The Risks You Face...................................... 5
Interest Rate Risk................................... 5
Selling Units........................................... 5
Selling Units to the Trustee......................... 5
How The Trusts Work..................................... 6
Pricing.............................................. 6
Evaluations.......................................... 6
Income............................................... 6
Expenses............................................. 6
Portfolio Changes.................................... 6
Termination.......................................... 7
No Certificates...................................... 7
Trust Indenture...................................... 7
Legal Opinion........................................ 8
Auditors............................................. 8
Sponsor.............................................. 8
Trustee.............................................. 8
Code of Ethics....................................... 8
Year 2000 Issues..................................... 8
Taxes................................................... 8
Supplemental Information................................ 9
Financial Statements.................................... D-1
2
<PAGE>
- --------------------------------------------------------------------------------
RISK/RETURN SUMMARY
1. WHAT ARE THE TRUSTS' OBJECTIVES?
Each Series seeks safety of capital and a high yield to
maturity by investing in fixed portfolios of stripped U.S.
Treasury securities.
Units are offered only to employee benefit plans and
compensation arrangements of Merrill Lynch & Co., Inc. and
its affiliates-- the Plans--as an investment alternative
for Plan allocations to help participants meet their
personal retirement needs and goals. Each Plan will invest
in Units in accordance with allocation instructions
received from employees pursuant to the Plan. Accordingly,
the interests of an employee in the units are subject to
the terms of the Plan. The rights of a Plan as a holder of
units should be distinguished from the rights of an
employee. The term 'you' in this Prospectus refers to the
Plans, to the Sponsor if it holds any units and to any
employee who holds units distributed from a Plan.
2. WHAT ARE STRIPPED U.S. TREASURY SECURITIES?
These are debt obligations issued directly by the U.S. They
do not pay interest periodically, and are priced at a deep
discount from face amount. This discount is your investment
return. Stripped securities only pay a fixed amount of
principal at maturity.
3. WHAT IS THE INVESTMENT STRATEGY?
O Each Series consists of two separate Trusts, each
designated by the year in which its stripped Treasury
security matures. Each Trust plans to hold to maturity the
stripped Treasury securities along with an interest bearing
Treasury note whose interest will pay Trust expenses. Each
Trust is a unit investment trust; unlike a mutual fund, the
Trust's portfolio is not managed.
o The securities in each Trust, but not the Trusts or the
units, are direct obligations of the United States.
o For each 10 units held until maturity of a Trust, you will
receive total distributions of about $1,000. Distributions
could change if Securities are paid or sold before
maturity, or if Trust expenses change.
o 100% of each Trust consists of U. S. Treasury securities.
4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN A TRUST. THIS CAN HAPPEN
FOR VARIOUS REASONS, INCLUDING:
o Rising interest rates can reduce the price of your units.
o As each Portfolio is priced at a deep discount, unit prices
may be subject to greater fluctuations in response to
changing interest rates than a fund consisting of debt
obligations of comparable maturities that pay interest
currently. This risk increases when the time to maturity is
longer.
o If you sell units before the underlying securities mature,
their sale price could be less than your cost. The value of
securities before maturity, and also the units, varies with
changes in interest rates and other factors.
5. ARE THE TRUSTS APPROPRIATE FOR YOU?
Yes, if you want safety of capital with a locked-in yield to
maturity. You benefit from a portfolio of U.S. government
securities, fixed returns and a stated maturity.
The Trusts are not appropriate for you if you want current
income or a speculative investment that changes to take
advantage of market movements.
6. ARE THE TRUSTS MANAGED?
Unlike mutual funds, the Trusts are not managed and
securities are not sold because of market changes. To lock
in the yield on the purchase date, the Trusts hold
securities to maturity unless sales are needed to pay
redemptions.
7. HOW DO I BUY UNITS?
The Plan buys units from the Trustee. There is no minimum
investment.
Unit price is based on the value of securities in the Trust.
We add any principal cash, and any net accrued but
undistributed interest on the unit, to the unit price.
An Adjustment Factor is added in computing the offer price
and deducted in computing the redemption price. This charge
represents the estimated cost of buying or selling
securities for the Trust; these costs are borne by the
purchaser or seller rather than the Trust.
3
<PAGE>
8. HOW DO I SELL UNITS?
A plan may sell units at any time to the Trustee for the net
asset value determined at the close of business on the date
of sale, less the adjustment factor.
9. HOW ARE DISTRIBUTIONS MADE AND TAXED?
Stripped Treasury securities do not pay interest until they
mature; consequently,you should not expect any distributions
of interest income. When the stripped Treasury security
matures, the proceeds will be distributed. You have
significant amounts of income attributed to you annually as
original issue discount is accrued on the stripped Treasury
securities.
The Plans have significant amounts of income attributed to
them annually as original issue discount is accrued on the
stripped Treasury securities. While the Plans are considered
to receive these amounts for tax purposes as they accrue,
the Plans are exempt from Federal income tax.
10. WHAT ARE THE TRUSTS' FEES AND EXPENSES?
The tables on the following page show the costs and expenses
the Plans may pay, directly or indirectly, when they invest
in a Trust.
There is no sales fee (load) on purchases, but income on
units is subject to the Sponsor's administrative fee; this
reimburses the Sponsor for its direct costs (without profit)
in administering the Trusts.
<TABLE>
<CAPTION>
1999 2004 2009 2014
TRUST TRUST TRUST TRUST
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
$ 0.69 $ 2.36 $ 7.49 $ 5.45
Maximum Sponsor's
Administrative Fee per
10 units on units held
to maturity
0.07% 0.26% 0.97% 0.85%
As % of Unit Price
(on March 31, 1999)
</TABLE>
<TABLE>
<CAPTION>
ESTIMATED ANNUAL TRUST OPERATING
EXPENSES PER 10 UNITS
<S> <C> <C> <C> <C>
Trustee Fee $ 0.50 $ 0.50 $ 0.50 $ 0.50
$ 1.11 $ 0.46 $ 0.74 $ 0.36
Sponsor's
Administrative
Fee
$ 0.21 $ 0.25 $ 0.14 $ 0.13
Other Operating
Expenses
--------- --------- --------- ---------
$ 1.82 $ 1.21 $ 1.38 $ 0.99
TOTAL
</TABLE>
11. WHAT IS THE PRICE OF A UNIT?
Unit price is based on the net asset value of the Trust plus
the adjustment factor shown below. An amount equal to any
principal cash, as well as net accrued but undistributed
interest on the unit, is added to the unit price. An
independent evaluator prices the securities at 3:30 p.m.
Eastern time every business day. Unit price changes every
day with changes in the prices of the securities.
UNIT OFFER PRICE 10 UNITS
(AS OF MARCH 31, 1999)
1999 2004 2009 2014
TRUST TRUST TRUST TRUST
--------- --------- --------- ---------
$ 97.422 $ 77.472 $ 57.805 $ 41.943
Net Asset Value
.029 .085 .104 .105
Adjustment Factor
--------- --------- --------- ---------
$ 97.451 $ 77.557 $ 57.909 $ 42.048
Offer Price
12. WHAT IS THE EXPECTED RETURN?
The Estimated Yield to Maturity represents the annual
percentage return to you, based on amortization of
discount, compounded semi-annually, divided by Unit Offer
Price. It assumes that interest income from the Treasury
note will equal expenses.
ESTIMATED YIELD TO MATURITY
(AS OF MARCH 31, 1999)
1999 2004 2009 2014
TRUST TRUST TRUST TRUST
--------- --------- --------- ---------
4.198% 5.025% 5.471% 5.812%
Your actual return will vary with unit price, how long you
hold your investment and changes in the portfolio and
expenses.
If the price of the units is less than stated, the yield
to maturity will be greater; if the price is greater
(other than additional accrued original discount), the
yield to maturity will be less.
The economic effect of purchasing units if you hold your
units until maturity of the securities is that you should
receive approximately a fixed yield, not only on your
original investment but on all earned discount during the
life of the securities. The assumed or implicit automatic
reinvestment at market rates at the time of purchase of
the portion of the yield represented by earned discount
differentiates the Trusts from funds consisting of
customary securities on which current periodic interest is
paid at market rates at the time of issue. Accordingly,
you virtually eliminate your risk of being unable to
invest distributions at a rate as high as the yield on
your Trust, but will forgo the ability to reinvest at
higher rates in the future.
4
<PAGE>
WHAT YOU CAN EXPECT FROM YOUR INVESTMENT
DISTRIBUTIONS AT MATURITY
Each Trust normally holds any net income and principal received until the
stripped Treasury security matures. Although no distributions of income are
expected, the Trustee may distribute any available balances in the Income and
Capital Account in June or December of any year, as instructed by the Sponsor.
RECORDS AND REPORTS
You will receive:
o an annual report on Trust activity; and
o annual tax information. This is also sent to the IRS. You must report the
amount of interest received during the year.
You may request:
o copies of evaluations to enable you to comply with federal and state tax
reporting requirements; and
o audited financial statements of the Trusts.
You may inspect records of Trust transactions at the Trustee's office during
regular business hours.
THE RISKS YOU FACE
INTEREST RATE RISK
Investing involves risks, including the risk that your investment before
maturity will decline in value if interest rates rise. Generally, the price of
stripped Treasury securities fluctuates more widely than prices of debt
securities that pay interest currently. Also, securities with longer maturities
will change in value more than securities with shorter maturities. Of course, we
cannot predict how interest rates may change.
SELLING UNITS
You can sell your units at any time for a price based on net asset value. Your
net asset value is calculated each business day by:
o adding the value of the securities, net accrued interest, cash and any
other Trust assets;
o subtracting accrued but unpaid Trust expenses, unreimbursed Trustee
advances, cash held to buy back units or for distribution to investors and
any other Trust liabilities;
o dividing the result by the number of outstanding units; and
o selecting the adjusted factor per unit.
Your net asset value when you sell may be more or less than your cost because of
market movements and changes in the portfolio.
SELLING UNITS TO THE TRUSTEE
The account can sell units to the Trustee at any time.
Within seven days after receiving a redemption request in proper form, the
Trustee will transmit the proceeds as directed by the request. Contact the
Trustee for additional information.
If a Trust does not have cash available to pay you for units received, the
Sponsor will select securities to be sold, based on market and credit factors.
These sales could be made at times when the securities would not otherwise be
sold and may result in your receiving less than the unit par value and also
reduce the size of the Trust.
5
<PAGE>
There could be a delay in paying for your units:
o if the New York Stock Exchange is closed (other than customary weekend and
holiday closings);
o if the SEC determines that trading on the New York Stock Exchange is
restricted or that an emergency exists making sale or evaluation of the
securities not reasonably practicable; and
o for any other period permitted by SEC order.
HOW THE TRUSTS WORK
PRICING
The price of a unit includes interest accrued on the securities, less expenses,
up to, but not including, the settlement date, which is usually the business day
after the purchase date of the unit.
EVALUATIONS
An independent Evaluator values the securities on each business day (excluding
Saturdays, Sundays and the following holidays as observed by the New York Stock
Exchange: New Year's Day, Presidents' Day, Martin Luther King, Jr. Day, Good
Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas;
and the following federal holidays: Columbus Day and Veterans Day). Values are
based on current prices for the securities or comparable security.
INCOME
The Trustee credits interest to an Income Account and other receipts to a
Capital Account. The Trustee may establish a Reserve Account by withdrawing from
these accounts amounts it considers appropriate to pay any material liability.
These accounts do not bear interest.
EXPENSES
The Trustee is paid semiannually. It also benefits when it holds cash for the
Trusts in non-interest bearing accounts. The Trustee may also receive additional
amounts:
o to reimburse the Trustee for the Trusts' operating expenses;
o for extraordinary services and costs of indemnifying the Trustee and the
Sponsors;
o costs of actions taken to protect the Trusts and other legal fees and
expenses;
o termination expenses and any governmental charges.
The Sponsor is paid an administrative fee to reimburse it for certain direct
expenses. The Sponsor will not collect the administrative fee on units held by
any Plan at any time when it has no reimbursable expenses. The Trusts also pay
the Evaluator's fees.
If Trust expenses exceed initial estimates, the Trust will owe the excess. The
Trustee has a lien on Trust assets to secure reimbursement of Trust expenses and
may sell securities if cash is not available.
PORTFOLIO CHANGES
The Sponsors and Trustee are not liable for any default or defect in a security.
Unlike a mutual fund, the portfolio is designed to remain intact and we may keep
securities in the portfolio even if adverse financial circumstances occur.
However, we may sell a security in certain cases if we believe that
6
<PAGE>
certain adverse credit or certain other conditions exist.
TERMINATION
Each Trust terminates following the stated maturity or sale of the last security
in the portfolio. A Trust may also terminate earlier with the consent of
investors holding 51% of the units or if total assets of the Trust are less
likely 40% of the face amount of securities deposited. We will decide whether to
terminate a Trust early.
When a Trust is about to terminate the Plans will receive a notice, and they
will be unable to sell units of the Trust after that time. On or shortly before
termination, we will sell any remaining securities, and you will receive your
final distribution. Any security that cannot be sold at a reasonable price may
continue to be held by the Trustee in a liquidating trust pending its final
sale.
You will pay your share of the expenses associated with termination, including
costs in selling securities. This may reduce the amount you receive as your
final distribution.
NO CERTIFICATES
No Certificates will be issued for units. The Trustee will credit your account
with the number of your units.
TRUST INDENTURE
Each Trust is a 'unit investment trust' governed by a Trust Indenture, a
contract among the Sponsor, the Trustee and the Evaluator, which sets forth
their duties and obligations and your rights. A copy of the Indenture is
available to you on request to the Trustee. The following summarizes certain
provisions of the Indenture.
The Sponsor and the Trustee may amend the Indenture without your consent:
o to cure ambiguities;
o to correct or supplement any defective or inconsistent provision;
o to make any amendment required by any governmental agency; or
o to make other changes determined not to be materially adverse to your best
interest (as determined by the Sponsor).
Investors holding 51% of the units may amend the Indenture. Every investor must
consent to any amendment that changes the 51% requirement. No amendment may
reduce your interest a Trust without your written consent.
The Trustee may resign by notifying the Sponsor. The Sponsor may remove the
Trustee without your consent if:
o it fails to perform its duties and the Sponsor determines that its
replacement is in your best interest; or
o it becomes incapable of acting or bankrupt or its affairs are taken over by
public authorities.
Investors holding 51% of the units may remove the Trustee. The Evaluator may
resign or be removed by the Sponsor and the Trustee without the consent of
investors. The resignation or removal of either becomes effective when a
successor accepts appointment. The Sponsor will try to appoint a successor
promptly; however, if no successor has accepted within 30 days after notice of
resignation, the resigning Trustee or Evaluator may petition a court to appoint
a successor.
If the Sponsor fails to perform its duties or becomes bankrupt the Trustee may:
7
<PAGE>
o remove it and appoint a replacement Sponsor;
o liquidate The Trust; or
o continue to act as Trustee without a Sponsor.
The Trust Indenture contains customary provisions limiting the liability of the
Trustee, the Sponsor and the Evaluator.
LEGAL OPINION
Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York 10017, as
special counsel for the Sponsor, has given an opinion that the units are validly
issued.
AUDITORS
Deloitte & Touche LLP, 2 World Financial Center, New York, New York 10281,
independent accountants, audited the Financial Statements included in this
prospectus.
SPONSOR
The Sponsor is:
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (a wholly-owned subsidiary of
Merrill Lynch & Co., Inc.)
P.O. Box 9051,
Princeton, NJ 08543-9051
The Sponsor is a Delaware corporation and it, or its predecessor, has acted as
sponsor to many unit investment trusts. As a registered broker-dealer the
Sponsor buys and sells securities (including investment company shares) for
others (including investment companies) and participates as an underwriter in
various selling groups.
TRUSTEE
The Bank of New York,101 Barclay Street-- 17W, New York, New York 10268, is the
Trustee. It is supervised by the Federal Deposit Insurance Corporation, the
Board of Governors of the Federal Reserve System and New York State banking
authorities.
CODE OF ETHICS
Merrill Lynch, as Sponsor, has adopted a code of ethics requiring preclearance
and reporting of personal securities transactions by its employees with access
to information on portfolio transactions. The goal of the code is to prevent
fraud, deception or misconduct against the Trusts and to provide reasonable
standards of conduct.
YEAR 2000 ISSUES
Many computer systems were designed in such a way that they may be unable to
distinguish between the year 2000 and the year 1900 (commonly known as the 'Year
2000 Problem'). We do not expect that the computer system changes necessary to
prepare for the Year 2000 will cause any major operational difficulties for the
Trusts. The Year 2000 Problem may adversely affect the issuers of the securities
contained in the Trusts, but we cannot predict whether any impact will be
material to any Trust as a whole.
TAXES
The following summary describes some of the important income tax consequences of
holding units. It assumes that you are not a dealer in securities, financial
institution, insurance company or other investor with special circumstances. You
should consult
8
<PAGE>
your own tax adviser about your particular circumstances.
In the opinion of our counsel, under existing law:
The Fund will not be taxed as a corporation for federal income tax purposes, and
you will be considered to own directly your share of each stripped zero coupon
bond in the Fund.
The zero coupon bonds will be considered to have been issued at an 'original
issue discount' for federal income tax purposes. As a result, you will be
required to include original issue discount in respect of the zero coupon bonds
as it accrues, in accordance with a constant yield method based on a compounding
of interest.
SUPPLEMENTAL INFORMATION
You can receive at no cost supplemental information about the Trusts by calling
the Trustee. The supplemental information includes more detailed risk disclosure
about the securities that may be in a Trust's portfolio and general information
about the structure and Trusts. The supplemental information is also available
from the SEC.
9
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
REPORT OF INDEPENDENT ACCOUNTANTS
The Sponsor, Trustee and Holders
of Defined Asset Funds - Government Securities Income Fund,
U.S. Government Zero Coupon Bond Series - 3:
We have audited the accompanying statements of condition of the 1999 Trust and
the 2009 Trust of Defined Asset Funds - Government Securities Income Fund, U.S.
Government Zero Coupon Bond Series - 3, including the portfolios, as of
March 31, 1999 and the related statements of operations and of changes in net
assets for the years ended March 31, 1999, 1998 and 1997. These financial
statements are the responsibility of the Trustee. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Securities owned at
March 31, 1999, as shown in such portfolios, were confirmed to us by The Bank of
New York, the Trustee. An audit also includes assessing the accounting
principles used and significant estimates made by the Trustee, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the above-mentioned Trusts of
Defined Asset Funds - Government Securities Income Fund, U.S. Government Zero
Coupon Bond Series - 3 at March 31, 1999 and the results of their operations and
changes in their net assets for the above-stated years in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, N.Y.
July 9, 1999
D-1
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
STATEMENTS OF CONDITION
AS OF MARCH 31, 1999
<TABLE>
1999
TRUST
<S> <C>
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $41,602,531) (Note 1) $41,745,450
Receivable for securities sold 107,828
Cash 841,417
Receivable for units created 21,633
Total trust property 42,716,328
LESS LIABILITIES:
Accrued expenses $164,808
Redemptions payable 11,308 176,116
NET ASSETS (Note 2) $42,540,212
UNITS OUTSTANDING 437,428.181
UNIT VALUE $97.25
2009
TRUST
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $67,683,305) (Note 1) $69,300,631
Receivable for securities sold 202,783
Receivable for units created 59,415
Accrued interest receivable 63,249
Cash 43,758
Total trust property 69,669,836
LESS LIABILITIES:
Accrued expenses $307,486
Redemptions payable 178,126 485,612
NET ASSETS (Note 2) $69,184,224
UNITS OUTSTANDING 1,197,716.636
UNIT VALUE $57.76
See Notes to Financial Statements.
</TABLE>
D-2
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
STATEMENTS OF OPERATIONS
1999 TRUST
<TABLE>
<CAPTION>
Years Ended March 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 55,106 $ 90,975 $ 89,339
Accretion of original issue discount 2,171,445 2,579,303 2,713,976
Trustees' fees and expenses (23,860) (25,098) (24,566)
Sponsors' fees (52,971) (55,717) (54,327)
Net investment income 2,149,720 2,589,463 2,724,422
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Realized gain (loss) on securities sold or
redeemed (157,664) 1,650,136 511,081
Unrealized appreciation (depreciation) of
investments 646,573 (760,847) (1,452,946)
Net realized and unrealized gain (loss) on
investments 488,909 889,289 (941,865)
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $2,638,629 $ 3,478,752 $1,782,557
2009 TRUST
Years Ended March 31,
1999 1998 1997
INVESTMENT INCOME:
Interest income $ 170,818 $ 184,791 $ 176,420
Accretion of original issue discount 4,013,372 4,044,507 3,714,088
Trustees' fees and expenses (61,841) (66,946) (69,167)
Sponsors' fees (91,525) (99,080) (95,167)
Net investment income 4,030,824 4,063,272 3,726,174
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Realized gain on securities sold or
redeemed 568,415 6,780,259 3,157,757
Unrealized appreciation (depreciation) of
investments 1,175,582 2,451,521 (5,311,064)
Net realized and unrealized gain (loss) on
investments 1,743,997 9,231,780 (2,153,307)
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $5,774,821 $13,295,052 $1,572,867
See Notes to Financial Statements.
</TABLE>
D-3
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
STATEMENTS OF CHANGES IN NET ASSETS
1999 TRUST
<TABLE>
<CAPTION>
Years Ended March 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income $ 2,149,720 $ 2,589,463 $ 2,724,422
Realized gain (loss) on securities sold or
redeemed (157,664) 1,650,136 511,081
Unrealized appreciation (depreciation) of
investments 646,573 (760,847) (1,452,946)
Net increase in net assets resulting from
operations 2,638,629 3,478,752 1,782,557
INCOME DISTRIBUTIONS (169,936)
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units 6,281,202 7,167,229 7,886,095
Redemptions of units (11,722,543) (8,190,428) (4,987,254)
Net capital share transactions (5,441,341) (1,023,199) 2,898,841
NET INCREASE (DECREASE) IN NET ASSETS (2,802,712) 2,285,617 4,681,398
NET ASSETS AT BEGINNING OF YEAR 45,342,924 43,057,307 38,375,909
NET ASSETS AT END OF YEAR $42,540,212 $45,342,924 $43,057,307
PER UNIT:
Net asset value at end of year. $97.25 $91.71 $84.89
Income distribution $0.34
TRUST UNITS OUTSTANDING AT END OF YEAR 437,428.181 494,393.080 507,233.904
See Notes to Financial Statements.
</TABLE>
D-4
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2009 TRUST
Years Ended March 31,
1999 1998 1997
OPERATIONS:
<S> <C> <C> <C>
Net investment income $4,030,824 $ 4,063,272 $ 3,726,174
Realized gain on securities sold or
redeemed 568,415 6,780,259 3,157,757
Unrealized appreciation (depreciation) of
investments 1,175,582 2,451,521 (5,311,064)
Net increase in net assets resulting
from operations 5,774,821 13,295,052 1,572,867
INCOME DISTRIBUTIONS (258,100)
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units 19,310,001 22,392,825 34,673,281
Redemptions of units (22,896,109) (28,555,985) (19,221,804)
Net capital share transactions (3,586,108) (6,163,160) 15,451,477
NET INCREASE IN NET ASSETS 2,188,713 6,873,792 17,024,344
NET ASSETS AT BEGINNING OF YEAR 66,995,511 60,121,719 43,097,375
NET ASSETS AT END OF YEAR $69,184,224 $66,995,511 $60,121,719
PER UNIT:
Net asset value at end of year $57.76 $53.27 $43.63
Income distribution $0.19
TRUST UNITS OUTSTANDING AT END OF YEAR 1,197,716.636 1,257,566.106 1,377,965.943
</TABLE>
See Notes to Financial Statements.
D-5
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940 as a Unit
Investment Trust. The Fund consists of the 1999 and 2009 Trusts, each a
separate unit investment trust. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of
its financial statements. The policies are in conformity with generally
accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator based on
the mean between bid and offering prices for the securities (see
"Redemption - Computation of Redemption Price Per Unit" in this
Prospectus).
(b) Cost of securities has been adjusted to include the accretion of
original issue discount on the Stripped Treasury Securities.
(c) Each Trust is not subject to income taxes. Accordingly, no provision
for such taxes is required.
2. NET ASSETS, MARCH 31, 1999
1999 TRUST
Cost of 437,428.181 units at Dates of Deposit $27,932,143
Redemption of units - Net cost of 709,778.437 units
redeemed less redemption amounts (2,254,979)
Realized gain on securities sold or redeemed 4,437,541
Unrealized depreciation of investments 142,919
Net capital applicable to Holders 30,257,624
Undistributed net investment income - accretion of
original issue discount ($12,384,159) less excess
($101,571) of fees and expenses over interest income 12,282,588
Net assets $42,540,212
2009 TRUST
Cost of 1,197,716.636 units at Dates of Deposit $42,622,971
Redemption of units - Net cost of 3,068,794.912 units
redeemed less redemption amounts (5,239,941)
Realized gain on securities sold or redeemed 15,638,285
Unrealized appreciation of investments 1,617,326
Net capital applicable to Holders 54,638,641
Undistributed net investment income - accretion of
original issue discount ($14,670,848) less excess
($125,265) of fees and expenses over interest income 14,545,583
Net assets $69,184,224
D-6
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
NOTES TO FINANCIAL STATEMENTS
3. CAPITAL SHARE TRANSACTIONS
Additional units were issued by the Trusts as follows:
Year Ended Year Ended Year Ended
Trust March 31, 1999 March 31, 1998 March 31, 1997
1999 66,576.508 80,636.482 94,494.433
2009 334,594.792 453,892.146 803,841.810
Units were redeemed as follows:
Year Ended Year Ended Year Ended
Trust March 31, 1999 March 31, 1998 March 31, 1997
1999 123,541.407 93,477.306 58,572.000
2009 394,444.262 574,291.983 433,776.222
Units may be redeemed at the office of the Trustee upon tender thereof
generally on any business day or, in the case of uncertificated units, upon
delivery of a request for redemption and payment of any relevant tax. The
Trustee may redeem units either in cash or in kind at the option of the
Holder as specified in writing to the Trustee.
4. INCOME TAXES
All Trust items of income received, accretion of original issue discount,
expenses paid, and realized gains and losses on securities sold are
attributable to the Holders, on a pro rata basis, for Federal income tax
purposes in accordance with the grantor trust rules of the United States
Internal Revenue Code.
At March 31, 1999, the cost of investment securities for Federal income tax
purposes was approximately equivalent to the adjusted cost as shown in each
Trust's portfolio.
5. DISTRIBUTIONS
It is anticipated that the Trusts will make distributions on the first
business day following the maturity of their holdings in the Stripped
Treasury Securities which are non-interest bearing. Any excess of interest
income over fees and expenses may be distributed periodically.
D-7
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
PORTFOLIOS
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Portfolio No. and Title Interest Face Adjusted
of Securities Rates Maturities Amount Cost(1) Value(1)
<S> <C> <C> <C> <C> <C>
1999 TRUST
1 Stripped Treasury Securities(2) 0.000% 11/15/99 $ 42,925,000 $41,602,531 $41,745,450
Total $ 42,925,000 $41,602,531 $41,745,450
2009 TRUST
1 Stripped Treasury Notes Securities 0.000% 5/15/09 $118,499,000 $65,611,629 $67,201,612
2 U.S. Treasury Bonds 9.125 5/15/09(3) 1,809,986 2,071,676 2,099,019
Total $120,308,986 $67,683,305 $69,300,631
(1) See Notes to Financial Statements.
(2) See "Risk Factors - Special Characteristics of Stripped Treasury Securities" in this Prospectus.
(3) Callable beginning 5/15/04 at par.
</TABLE>
D-8
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
REPORT OF INDEPENDENT ACCOUNTANTS
The Sponsor, Trustee and Holders
of Defined Asset Funds - Government Securities Income Fund,
U.S. Government Zero Coupon Bond Series - 8:
We have audited the accompanying statements of condition of the 2004 Trust and
the 2014 Trust of Defined Asset Funds - Government Securities Income Fund, U.S.
Government Zero Coupon Bond Series - 8, including the portfolios, as of
March 31, 1999 and the related statements of operations and of changes in net
assets for the year ended March 31, 1999 and the period February 3 to March 31,
1998. These financial statements are the responsibility of the Trustee. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Securities owned at
March 31, 1999, as shown in such portfolios, were confirmed to us by The Bank of
New York, the Trustee. An audit also includes assessing the accounting
principles used and significant estimates made by the Trustee, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the above-mentioned Trusts of
Defined Asset Funds - Government Securities Income Fund, U.S. Government Zero
Coupon Bond Series - 8 at March 31, 1999 and the results of their operations and
changes in their net assets for the above-stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, N.Y.
July 9, 1999
D-1
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
STATEMENTS OF CONDITION
AS OF MARCH 31, 1999
<TABLE>
2004
TRUST
<S> <C>
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $7,415,484) (Note 1) $7,346,818
Accrued interest receivable 4,358
Deferred organization costs (Note 6) 34,750
Cash 57,388
Total trust property 7,443,314
LESS LIABILITIES:
Redemptions payable $ 65,461
Accrued expenses 3,168
Other liabilities (Note 6) 46,250 114,879
NET ASSETS (Note 2) $ 7,328,435
UNITS OUTSTANDING 94,795.531
UNIT VALUE $77.31
2014
TRUST
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $34,409,347) (Note 1) $32,192,646
Receivable for securities sold 383,920
Receivable for units created 112
Accrued interest receivable 28,778
Deferred organization costs (Note 6) 53,500
Total trust property 32,658,956
LESS LIABILITIES:
Advance from trustee $105,673
Accrued expenses 23,812
Redemptions payable 300,841
Other liabilities (Note 6) 71,500 501,826
NET ASSETS (Note 2) $32,157,130
UNITS OUTSTANDING 766,298.039
UNIT VALUE $41.96
See Notes to Financial Statements.
</TABLE>
D-2
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Year February 3,
Ended to
March 31, March 31,
2004 TRUST 1999 1998
<S> <C> <C>
INVESTMENT INCOME:
Interest income $ 7,817 $ 243
Accretion of original issue discount 298,335 9,126
Trustees' fees and expenses (3,262) (282)
Sponsors' fees (2,991) (95)
Organizational expenses (11,500) (11,500)
Net investment income (loss) 288,399 (2,508)
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:(377)
Realized gain (loss) on securities sold or redeemed 32,811 (377)
Unrealized depreciation of investments (59,151) (9,515)
Net realized and unrealized loss on investments (26,340) (9,892)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS $ 262,059 $(12,400)
Year February 3,
Ended to
March 31, March 31,
2014 TRUST 1999 1998
INVESTMENT INCOME:
Interest income $ 42,173 $ 1,061
Accretion of original issue discount 1,250,191 28,793
Trustees' fees and expenses (21,540) (741)
Sponsors' fees (15,501) (405)
Organizational expenses (18,000) (18,000)
Net investment income 1,237,323 10,708
REALIZED AND UNREALIZED GAIN (LOSS)ON INVESTMENTS:
Realized gain on securities sold or redeemed 351,846 3,101
Unrealized appreciation (depreciation) of investments (2,222,374) 5,673
Net realized and unrealized gain (loss) on investments (1,870,528) 8,774
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS $ (633,205) $ 19,482
See Notes to Financial Statements.
</TABLE>
D-3
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
2004 TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year February 3,
Ended to
March 31, March 31,
1999 1998
<S> <C> <C>
OPERATIONS:
Net investment income $ 288,399 $ (2,508)
Realized gain (loss) on securities sold or redeemed 32,811 (377)
Unrealized depreciation of investments (59,151) (9,515)
Net increase (decrease) in net assets resulting from
operations 262,059 (12,400)
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units 10,234,173 1,642,730
Redemptions of units (4,387,293) (534,574)
Net capital share transactions 5,846,880 1,108,156
NET INCREASE IN NET ASSETS 6,108,939 1,095,756
NET ASSETS AT BEGINNING OF PERIOD 1,219,496 123,740
NET ASSETS AT END OF PERIOD $ 7,328,435 $1,219,496
PER UNIT:
Net asset value at end of period. $77.31 $70.91
TRUST UNITS OUTSTANDING AT END OF PERIOD 94,795.531 17,197.680
See Notes to Financial Statements.
</TABLE>
D-4
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
2014 TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year February 3,
Ended to
March 31, March 31,
1999 1998
<S> <C> <C>
OPERATIONS:
Net investment income $ 1,237,323 $ 10,708
Realized gain on securities sold or redeemed 351,846 3,101
Unrealized appreciation (depreciation) of investments (2,222,374) 5,673
Net increase (decrease) in net assets resulting from
operations (633,205) 19,482
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units 52,983,208 4,837,030
Redemptions of units (24,701,591) (471,223)
Net capital share transactions 28,281,617) 4,365,807
NET INCREASE IN NET ASSETS 27,648,412 4,385,289
NET ASSETS AT BEGINNING OF PERIOD 4,508,718 123,429
NET ASSETS AT END OF PERIOD $32,157,130 $ 4,508,718
PER UNIT:
Net asset value at end of period $41.96 $39.24
TRUST UNITS OUTSTANDING AT END OF PERIOD 766,298.039 114,887.494
</TABLE>
See Notes to Financial Statements.
D-5
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
2004 AND 2014 TRUSTS
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940 as a Unit
Investment Trust. The Fund consists of the 2004 and 2014 Trusts, each a
separate unit investment trust. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of
its financial statements. The policies are in conformity with generally
accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator based on
the mean between bid and offering prices for the securities (see
"Redemption - Computation of Redemption Price Per Unit" in this
Prospectus).
(b) Cost of securities has been adjusted to include the accretion of
original issue discount on the Stripped Treasury Securities.
(c) Each Trust is not subject to income taxes. Accordingly, no provision
for such taxes is required.
2. NET ASSETS, MARCH 31, 1999
2004 TRUST
Cost of 94,795.531 units at Dates of Deposit $ 7,140,964
Redemption of units - Net cost of 64,511.733 units
redeemed less redemption amounts 47,097
Realized gain on securities sold or redeemed 32,434
Unrealized depreciation of investments (68,666)
Net capital applicable to Holders 7,151,829
Undistributed net investment loss - accretion of
original issue discount ($198,176) less excess
($21,570) of fees and expenses over interest income 176,606
Net assets $ 7,328,435
2014 TRUST
Cost of 766,298.039 units at Dates of Deposit $33,025,834
Redemption of units - Net cost of 578,168.169 units
redeemed less redemption amounts 354,643
Realized gain on securities sold or redeemed 354,947
Unrealized depreciation of investments (2,216,701)
Net capital applicable to Holders 31,518,723
Undistributed net investment income - accretion of
original issue discount ($669,360) less excess
($30,953) of fees and expenses over interest income 638,407
Net assets $32,157,130
D-6
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
2004 AND 2014 TRUSTS
NOTES TO FINANCIAL STATEMENTS
3. CAPITAL SHARE TRANSACTIONS
Additional units were issued by the Trusts as follows:
Year February 3,
Ended to
Trust March 31, 1999 March 31, 1998
2004 134,615.574 22,692.840
2014 1,217,569.845 123,763.613
Units were redeemed as follows:
Year February 3,
Ended to
Trust March 31, 1999 March 31, 1998
2004 57,017.723 7,494.010
2014 566,159.300 12,008.889
Units may be redeemed at the office of the Trustee upon tender thereof
generally on any business day or, in the case of uncertificated units, upon
delivery of a request for redemption and payment of any relevant tax. The
Trustee may redeem units either in cash or in kind at the option of the
Holder as specified in writing to the Trustee.
4. INCOME TAXES
All Trust items of income received, accretion of original issue discount,
expenses paid, and realized gains and losses on securities sold are
attributable to the Holders, on a pro rata basis, for Federal income tax
purposes in accordance with the grantor trust rules of the United States
Internal Revenue Code.
At March 31, 1999, the cost of investment securities for Federal income tax
purposes was approximately equivalent to the adjusted cost as shown in each
Trust's portfolio.
5. DISTRIBUTIONS
It is anticipated that the Trusts will make distributions on the first
business day following the maturity of their holdings in the Stripped
Treasury Securities which are non-interest bearing. Any excess of interest
income over fees and expenses may be distributed periodically.
6. DEFERRED ORGANIZATION COSTS
Deferred organization costs are being amortized over a period of five
years. Included in "Other liabilities" in the accompanying statements of
condition are $46,250 and $53,500 for the 2004 and 2014 Trusts,
respectively, payable to the Trustee for reimbursement of costs related to
the organization of the Trusts.
D-7
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
PORTFOLIOS
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Portfolio No. and Title Interest Face Adjusted
of Securities Rates Maturities Amount Cost(1) Value(1)
<S> <C> <C> <C> <C> <C>
2004 TRUST
1 Stripped Treasury Securities(2) 0.000% 5/15/04 $ 9,375,000 $ 7,240,104 $ 7,173,347
2 U.S. Treasury Notes 7.250 5/15/04 159,102 174,780 173,471
Total $ 9,534,102 $ 7,415,484 $ 7,346,818
2014 TRUST
1 Stripped Treasury Securities (2) 0.000% 5/15/14 $75,913,000 $33,156,389 $30,985,941
2 U.S. Treasury Bonds 7.250 5/15/16 1,050,736 1,252,958 1,206,705
Total $76,963,736 $34,409,347 $32,192,646
(1) See Notes to Financial Statements.
(2) See "Risk Factors - Special Characteristics of Stripped Treasury Securities" in this Prospectus.
</TABLE>
D-8
<PAGE>
Defined
Asset FundsSM
HAVE QUESTIONS ? GOVERNMENT SECURITIES INCOME FUND
Request the most recent free U.S GOVERNMENT ZERO COUPON BOND SERIES
Information Supplement 3 AND 8
that gives more details about (Unit Investment Trusts)
the Trusts, by calling: ---------------------------------------
The Bank of New York This Prospectus does not contain
1-800-221-7771 complete information about the
investment company filed with the
Securities and Exchange Commission in
Washington, D.C. under the:
o Securities Act of 1933 (file nos.
33-26716 and 333-36109) and
o Investment Company Act of 1940 (file
no. 811-2810).
TO OBTAIN COPIES AT PRESCRIBED RATES--
WRITE: Public Reference Section of the
Commission
450 Fifth Street, N.W., Washington,
D.C. 20549-6009
CALL: 1-800-SEC-0330.
VISIT: http://www.sec.gov.
---------------------------------------
No person is authorized to give any
information or representations about
this Fund not contained in this
Prospectus or the Information
Supplement, and you should not rely on
any other information.
---------------------------------------
When units of this Fund are no longer
available, this Prospectus may be used
as a preliminary prospectus for a
future series, but some of the
information in this Prospectus will be
changed for that series.
Units of any future series may not be
sold nor may offers to buy be accepted
until that series has become effective
with the Securities and Exchange
Commission. No units can be sold in any
State where a sale would be illegal.
11352--7/99
<PAGE>
GOVERNMENT SECURITIES INCOME FUND
DEFINED ASSET FUNDS
CONTENTS OF REGISTRATION STATEMENT
This Post-Effective Amendment to the Registration Statement on Form S-6
comprises the following papers and documents:
The facing sheet of Form S-6.
The cross-reference sheet (incorporated by reference to the Cross-Reference
Sheet to the Registration Statement on Form S-6 of Defined Asset Funds Municipal
Insured Series, 1933 Act File No. 33-54565).
The Prospectus.
The Signatures.
The following exhibits:
1.1.1--Form of Standard Terms and Conditions of Trust Effective as of
October 21, 1993 (incorporated by reference to Exhibit 1.1.1 to the
Registration Statement of Municipal Investment Trust Fund,
Multi-state Series--48, 1933 Act File No. 33-50247).
4.1 --Consent of the Evaluator.
5.1 --Consent of independent accountants.
9.1 --Information Supplement (incorporated by reference to Exhibit 9.1 to
the Registration Statement of Government Securities Income Fund,
Freddie Mac Series 12, 1933 Act File No. 33-56849.
R-1
<PAGE>
GOVERNMENT SECURITIES INCOME FUND
U.S. GOVERNMENT ZERO COUPON SERIES 3
DEFINED ASSET FUNDS
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THE REGISTRANT,
GOVERNMENT SECURITIES INCOME FUND, U.S. GOVERNMENT ZERO COUPON BOND SERIES 3,
DEFINED ASSET FUNDS (A UNIT INVESTMENT TRUST), HAS DULY CAUSED THIS AMENDMENT TO
THE REGISTRATION STATEMENT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED
THEREUNTO DULY AUTHORIZED IN THE CITY OF NEW YORK AND STATE OF NEW YORK ON THE
16TH DAY OF JULY, 1999.
SIGNATURES APPEAR ON PAGE R-3.
A majority of the members of the Board of Directors of Merrill Lynch,
Pierce, Fenner & Smith Incorporated has signed this Registration Statement or
Amendment to the Registration Statement pursuant to Powers of Attorney
authorizing the person signing this Registration Statement or Amendment to the
Registration Statement to do so on behalf of such members.
R-2
<PAGE>
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
DEPOSITOR
By the following persons, who constitute Powers of Attorney have been filed
a majority of under
the Board of Directors of Merrill Form SE and the following 1933 Act
Lynch, Pierce, File
Fenner & Smith Incorporated: Number: 333-70593
HERBERT M. ALLISON, JR.
GEORGE A. SCHIEREN
JOHN L. STEFFENS
By J. DAVID MEGLEN
(As authorized signatory for Merrill Lynch, Pierce,
Fenner & Smith Incorporated and
Attorney-in-fact for the persons listed above)
R-3
<PAGE>
EXHIBIT 4.1
INTERACTIVE DATA
FINANCIAL TIMES INFORMATION
14 WALL STREET, 11th FLOOR
NEW YORK, NEW YORK 10005
(212) 306-6596
FAX 212-306-6698
June 16, 1999
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
Defined Asset Funds
P.O. Box 9051
Princeton, New Jersey 08543-9051
The Bank of New York
101 Barclay Street
New York, New York 10286
RE: DEFINED ASSET FUNDS--GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES--3
Gentlemen:
We have examined the post-effective Amendment to the Registration Statement
File No. 33-26716 for the above-captioned trust. We hereby acknowledge that
Kenny S&P Evaluation 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 Evaluation Services, a division of J. J.
Kenny Co., Inc. as evaluator.
You are hereby authorized to file copies of this letter with the Securities
and Exchange Commission.
Sincerely,
Very truly yours,
JAMES PERRY
Vice President
<PAGE>
Exhibit 5.1
CONSENT OF INDEPENDENT ACCOUNTANTS
The Sponsors and Trustee of
Government Securities Income Fund--U.S. Government Zero Coupon Bond Series--3,
Defined Asset Funds
We consent to the use in this Post-Effective Amendment No. 10 to Registration
Statement No. 33-26716 of our opinion dated July 9, 1999 appearing in the
Prospectus, which is part of such Registration Statement, and to the reference
to us under the heading 'How The Fund Works--Auditors' in such Prospectus.
DELOITTE & TOUCHE LLP
New York, N.Y.
July 19, 1999
