1933 Act File No. 33-31259
1940 Act File No. 811-5911
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
X
Pre-Effective Amendment No.
Post-Effective Amendment No. 29 X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF
1940 X
Amendment No. 29 X
FEDERATED MUNICIPAL TRUST
(Exact Name of Registrant as Specified in Charter)
Federated Investors Tower, Pittsburgh, Pennsylvania 15222-3779
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
John W. McGonigle, Esquire,
Federated Investors Tower,
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
immediately upon filing pursuant to paragraph (b)
on _________________ pursuant to paragraph (b)
X 60 days after filing pursuant to paragraph (a)
on pursuant to paragraph (a) of Rule 485.
Registrant has filed with the Securities and Exchange
Commission a declaration pursuant to Rule 24f-2 under the
Investment Company Act of 1940, and:
X filed the Notice required by that Rule on December 15,
1993; or
intends to file the Notice required by that Rule on or
about ____________; or
during the most recent fiscal year did not sell any
securities pursuant to Rule 24f-2 under the Investment
Company Act of 1940, and, pursuant to Rule 24f-2(b)(2), need
not file the Notice.
Copies to:
Thomas J. Donnelly, Esquire Charles H. Morin, Esquire
Houston, Houston & Donnelly Dickstein, Shapiro & Morin,
L.L.P.
2510 Centre City Tower 2101 L Street, N.W.
650 Smithfield Street Washington, D.C. 20037
Pittsburgh, Pennsylvania 15222
CROSS-REFERENCE SHEET
This Amendment to the Registration Statement of FEDERATED
MUNICIPAL TRUST, which is comprised of thirteen portfolios:
(1) Connecticut Municipal Cash Trust, (a) Institutional
Service Shares; (2) Pennsylvania Municipal Cash Trust, (a)
Cash Series Shares and (b) Institutional Service Shares; (3)
Massachusetts Municipal Cash Trust, (a) Institutional Service
Shares and (b) BayFunds Shares; (4) Minnesota Municipal Cash
Trust, (a) Cash Series Shares and (b) Institutional Shares;
(5) New Jersey Municipal Cash Trust, (a) Institutional Shares
and (b) Institutional Shares; (6) Ohio Municipal Cash Trust,
(a) Cash II Shares and (b) Institutional Shares; (7) Virginia
Municipal Cash Trust, (a) Institutional Shares and
(b) Institutional Service Shares; (8) Alabama Municipal Cash
Trust; (9) North Carolina Municipal Cash Trust; (10) Maryland
Municipal Cash Trust; (11) California Municipal Cash Trust;
and (12) New York Municipal Cash Trust, (a) Cash II Shares and
(b) Institutional Service Shares, relates only to one of the
portfolios, Florida Municipal Cash Trust and is comprised of
the following:
PART A. INFORMATION REQUIRED IN A PROSPECTUS.
Prospectus Heading
(Rule 404(c) Cross Reference)
Item 1. Cover Page (1-13) Cover Page.
Item 2. Synopsis (1-13) Summary of Fund
Expenses.
Item 3. Condensed Financial
Information (8,9) Financial Highlights; (1-
9) Performance Information;
(3b) Tax-Equivalent Yield.
Item 4. General Description of
Registrant (1-13) General Information;
(1-13) Investment Information;
(1-13) Investment Objective; (1-
13) Investment Policies;
(1) Connecticut Municipal
Securities; (2) Pennsylvania
Municipal Securities;
(3) Massachusetts Municipal
Securities; (4) Minnesota
Municipal Securities; (5) New
Jersey Municipal Securities;
(6) Ohio Municipal Securities;
(7) Virginia Municipal
Securities; (8) Alabama
Municipal Securities; (9) North
Carolina Municipal Securities;
(10) Maryland Municipal
Securities; (11) California
Municipal Securities; (12) New
York Municipal Securities; (13
Florida Municipal Securities;
(1-13) Standby Commitments;
(1) Connecticut Investment
Risks; (2) Pennsylvania
Investment Risks;
(3) Massachusetts Investment
Risks; (4) Minnesota Investment
Risks; (5) New Jersey
Investment Risks; (6) Ohio
Investment Risks; (7) Virginia
Investment Risks; (8) Alabama
Investment Risks; (9) North
Carolina Investment Risks; (10)
Maryland Investment Risks; (11)
California Investment Risks;
(12) New York Investment Risks;
(13) Florida Investment Risks;
(1-13) Non-Diversification;
(1-13) Investment Limitations;
(1-13) Regulatory Compliance.
Item 5. Management of the Fund (1-13) Federated Municipal
Trust Information; (1-13)
Management of Federated
Municipal Trust; (1-7, 12)
Distribution of Cash Series,
Institutional, Institutional
Service, or Cash II Shares; (8-
11, 13) Distribution of Fund
Shares; (1-13) Administration
of the Fund; (7,11,12) Expenses
of the Fund and Institutional,
Institutional Service, or Cash
II Shares; (8-10, 13) Expenses
of the Fund.
Item 6. Capital Stock and Other
Securities (1-13) Dividends; (1-13)
Capital Gains; (1-13)
Shareholder Information; (1-13)
Voting Rights; (1-13)
Massachusetts Partnership Law;
(1-13) Tax Information; (1-13)
Federal Income Tax; (1)
Connecticut Tax Considerations;
(2) Pennsylvania Tax
Considerations; (3)
Massachusetts Tax
Considerations; (4) Minnesota
Tax Considerations; (5) New
Jersey Tax Considerations; (6)
Ohio Tax Considerations; (7)
Virginia Tax Considerations;
(8) Alabama Taxes; (9) North
Carolina Taxes; (10) Maryland
Tax Considerations; (11)
California State Income Taxes;
(12) New York State Tax
Considerations; (13) Florida
Tax Considerations; (1-
13) Other State and Local
Taxes; (2,3,4,5,6,7,12) Other
Classes of Shares.
Item 7. Purchase of Securities Being
Offered (1-13) Net Asset Value;
(4a,5a,6a) Distribution Plan;
(12) Distribution and
Shareholder Servicing
Arrangements; (13) Distribution
and Shareholder Services Plans;
(8,9,12, 13) Other Payments to
Financial Institutions; (3b,7b)
Shareholder Services Plan; (1-
10,12) Investing in Cash
Series, Institutional,
Institutional Services or Cash
II Shares; (8,9,11, 13)
Investing in Fund Shares; (1-
6,11,12, 13) Share Purchases;
(1-13) Minimum Investment
Required; (1-12) What Shares
Cost; (2a,4a,6a) Systematic
Investment Program; (2a,4a,6a)
Automatic Investments; (1-13)
Subaccounting Services; (1-13)
Certificates and Confirmations.
Item 8. Redemption or Repurchase (1-7,12) Redeeming Cash Series,
Institutional, Institutional
Service or Cash II Shares;
(8,9) Redeeming Fund Shares;
(11, 13) Redeeming Shares;
(2a,4a,6a, 13) Through a
Financial Institution;
(2a,4a,6a,10) Directly from the
Fund; (1,2,3,4b,5,6b,7,11,12)
Telephone Redemption; (1-
9,11,12) Written Requests; (12,
13) By Mail; (10, 13) By
Writing a Check; (8,9,11)
Checkwriting; (1-7) Redemption
Before Purchase Instruments
Clear; (1-13) Accounts With Low
Balances.
Item 9. Pending Legal Proceedings None.
PART B. INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL
INFORMATION.
Item 10. Cover Page (1-13) Cover Page.
Item 11. Table of Contents (1-13) Table of Contents.
Item 12. General Information and
History (1-13) General Information
About the Fund.
Item 13. Investment Objectives and
Policies (1-13) Investment Objective and
Policies; (1-13) Investment
Limitations.
Item 14. Management of the Fund (1-10) Federated Municipal
Trust Management; (11-13) Trust
Management.
Item 15. Control Persons and Principal
Holders of Securities Not applicable.
Item 16. Investment Advisory and Other
Services (1-13) Investment Advisory
Services; (1-13) Administrative
Services; (4a,5a,6a,12)
Distribution Plan; (3b,7b)
Shareholder Services Plan; (13)
Distribution and Shareholder
Services Plan.
Item 17. Brokerage Allocation (1-13) Brokerage Transactions.
Item 18. Capital Stock and Other
Securities Not applicable.
Item 19. Purchase, Redemption and Pricing
of Securities Being Offered (1-13) Purchasing Shares;
(1-13) Determining Net Asset
Value; (1-13) Redeeming Shares.
Item 20. Tax Status (1-13) Tax Status.
Item 21. Underwriters Not applicable.
Item 22. Calculation of Performance
Data (1-13) Yield; (1-13) Effective
Yield; (1,2,3a,4-13) Tax-
Equivalent Yield; (1-13)
Performance Comparisons.
Item 23. Financial Statements (1-7) Filed in Part A; (8-13)
To be filed by Amendment
SUBJECT TO COMPLETION, PRELIMINARY PROSPECTUS DATED JULY 21, 1994
INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR
AMENDMENT. A REGISTRATION STATEMENT RELATING TO THESE
SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS
TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION
STATEMENT BECOMES EFFECTIVE. THIS PROSPECTUS SHALL NOT
CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO
BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY
STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE
UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE
SECURITIES LAWS OF ANY SUCH STATE.
Florida Municipal Cash Trust
(A Portfolio of Federated Municipal Trust)
Prospectus
The shares of Florida Municipal Cash Trust (the "Fund")
offered by this prospectus represent interests in a non-
diversified portfolio of Federated Municipal Trust (the
"Trust"), an open-end management investment company (a mutual
fund). The Fund invests in Florida municipal securities to
achieve current income exempt from federal regular income tax
consistent with stability of principal and liquidity. The Fund
also intends to qualify as an investment exempt from the
Florida state intangibles tax.
The shares offered by this prospectus are not deposits or
obligations of any bank, are not endorsed or guaranteed by any
bank, and are not insured or guaranteed by the U.S.
government, the Federal Deposit Insurance Corporation, the
Federal Reserve Board, or any other government agency.
Investment in these shares involves investment risks including
possible loss of principal. The Fund attempts to maintain a
stable net asset value of $1.00 per share; there can be no
assurance that the Fund will be able to do so.
This prospectus contains the information you should read and
know before you invest in the Fund. Keep this prospectus for
future reference.
The Fund has also filed a Statement of Additional Information
dated September __, with the Securities and Exchange
Commission. The information contained in the Statement of
Additional Information is incorporated by reference into this
prospectus. You may request a copy of the Statement of
Additional Information free of charge, by calling 1-800-235-
4669. To obtain other information, or make inquiries about the
Fund, contact the Fund at the address listed in the back of
this prospectus.
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.
Prospectus dated September __, 1994
Summary of Fund Expenses 1
General Information 2
Investment Information 2
Investment Objective 2
Investment Policies 2
Florida Municipal
Securities 4
Investment Risks 5
Non-Diversification 5
Investment Limitations 6
Regulatory Compliance 6
Trust Information 6
Management of the
Trust 6
Other Payments to
Financial
Institutions 7
Distribution of Shares 7
Administration of the
Trust 8
Expenses of the Fund 8
Net Asset Value 9
Investing in the Fund 9
Share Purchases 9
Minimum Investment
Required 10
Subaccounting Services 10
Certificates and
Confirmations 10
Dividends 10
Capital Gains 10
Through a Financial
Institution 11
By Mail 11
Accounts with Low
Balances 12
Shareholder Information 12
Voting Rights 12
Massachusetts
Partnership Law 13
Tax Information 13
Federal Income Tax 13
State and Local Taxes 13
Performance Information 14
Addresses 15
Summary of Fund Expenses
Shareholder Transaction Expenses
Maximum Sales Load Imposed on Purchases (as a percentage
of offering price) None
Maximum Sales Load Imposed on Reinvested Dividends (as a
percentage of offering price) None
Contingent Deferred Sales Charge (as a percentage of original
purchase price or redemption proceeds, as applicable) None
Redemption Fee (as a percentage of amount redeemed, if
applicable) None
Exchange Fee None
Annual Fund Operating Expenses*
(As a percentage of average net assets)
Management Fee (after waiver) (1) 0.19%
12b-1 Fee (2) 0.00%
Total Other Expenses 0.30%
Shareholder Services Fee 0.25%
Total Fund Operating Expenses (3) 0.49%
(1)The estimated management fee has been reduced to
reflect the anticipated voluntary waiver of a portion
of the management fee. The adivser can terminate this
voluntary waiver at any time at its sole discretion.
The maximum managment fee is 0.40%
(2)The Fund has no present intention of paying or accruing
the 12b-1 fee during the fiscal year ending October 31,
1994. If the Fund were paying or accruing the 12b-1
fee, the Fund would be able to pay up to 0.25% of its
average daily net assets for the 12b-1 fee. See
"Federated Municipal Trust Information".
(3)The Total Fund Operating Expenses are estimated to be
0.70% absent the anticipated voluntary waiver of a
portion of the management fee.
*The Total Fund Operating Expenses are estimated based
on average expenses expected to be incurred during the
period ending October 31, 1994. During the course of this
period, expenses may be more or less than the average
amount shown.
The purpose of tlhis table is to assist an investor in
understanding the various costs and expenses that a
shareholder of the fund will bear, either directly or
indirectly. For more complete descriptions of the various
costs and expenses, see "Investing in the Fund" and "Federated
Municipal Trust Information." Wire-transferred redemptions of
less than $5,000 may be subject to additional fees.
EXAMPLE 1 year 3 years
You would pay the following expenses on a $1,000
investment
assuming (1) 5% annual return and (2) redemption at the
end
of each time period. $5 $16
The above example should not be considered a
representation of past or future expenses. Actual expenses
may be greater or less than those shown. This example is
based on estimated data for the Fund's fiscal year ending
October 31, 1994.
General Information
The Trust was established as a Massachusetts business trust
under a Declaration of Trust dated September 1, 1989. The
Declaration of Trust permits the Trust to offer separate
series of shares of beneficial interest representing interests
in separate portfolios of securities. The Fund is designed for
financial institutions acting in an agency or fiduciary
capacity as a convenient means of accumulating an interest in
a professionally managed, non-diversified portfolio investing
primarily in short-term Florida municipal securities. The Fund
may not be a suitable investment for retirement plans or for
non-Florida taxpayers because it invests in municipal
securities of that state. A minimum initial investment of
$10,000 over a 90-day period is required.
Investment Information
Investment Objective
The investment objective of the Fund is current income exempt
from federal regular income tax consistent with stability of
principal and liquidity. Also, the Fund intends to qualify as
an investment exempt from the Florida state intangibles tax.
This investment objective cannot be changed without
shareholder approval. While there is no assurance that the
Fund will achieve its investment objective, it endeavors to do
so by following the investment policies described in this
prospectus.
Investment Policies
The Fund pursues its investment objective by investing in a
portfolio of Florida municipal securities (as defined below)
maturing in 13 months or less. As a matter of investment
policy, which cannot be changed without shareholder approval,
at least 80% of the Fund's annual interest income will be
exempt from federal regular income tax. (Federal regular
income tax does not include the federal individual alternative
minimum tax or the federal alternative minimum tax for
corporations.) The average maturity of the securities in the
Fund's portfolio, computed on a dollar-weighted basis, will be
90 days or less. Unless indicated otherwise, the investment
policies set forth below may be changed by the Trustees
without shareholder approval. Shareholders will be notified
before any material change in these policies becomes
effective.
Acceptable Investments. The Fund invests primarily in debt
obligations issued by or on behalf of Florida and its
political subdivisions and financing authorities (these will
normally constitute at least 65% of the Fund's total assets),
and obligations of other states, territories, and possessions
of the United States, including the District of Columbia, and
any political subdivision or financing authority of any of
these, the income from which is, in the opinion of qualified
legal counsel, exempt from federal regular income tax.
Examples of Florida municipal securities include, but are not
limited to:
otax and revenue anticipation notes ("TRANs") issued
to finance working capital needs in anticipation of
receiving taxes or other revenues;
obond anticipation notes ("BANs") that are intended to
be refinanced through a later issuance of longer-term
bonds;
omunicipal commercial paper and other short-term
notes;
ovariable rate demand notes;
omunicipal bonds (including bonds having serial
maturities and pre-refunded bonds) and leases; and
oparticipation, trust and partnership interests in any
of the foregoing obligations.
Variable Rate Demand Notes. Variable rate demand notes
are long-term debt instruments that have variable or
floating interest rates and provide the Fund with the
right to tender the security for repurchase at its
stated principal amount plus accrued interest. Such
securities typically bear interest at a rate that is
intended to cause the securities to trade at par. The
interest rate may float or be adjusted at regular
intervals (ranging from daily to annually), and is
normally based on a published interest rate or interest
rate index. Most variable rate demand notes allow the
Fund to demand the repurchase of the security on not
more than seven days prior notice. Other notes only
permit the Fund to tender the security at the time of
each interest rate adjustment or at other fixed
intervals. See "Demand Features." The Fund treats
variable rate demand notes as maturing on the later of
the date of the next interest rate adjustment or the
date on which the Fund may next tender the security for
repurchase.
Participation Interests. The Fund may purchase
interests in Florida municipal securities from
financial institutions such as commercial and
investment banks, savings and loan associations, and
insurance companies. These interests may take the form
of participations, beneficial interests in a trust,
partnership interests or any other form of indirect
ownership that allows the Fund to treat the income from
the investment as exempt from federal income tax. The
Fund invests in these participation interests in order
to obtain credit enhancement or demand features that
would not be available through direct ownership of the
underlying Florida municipal securities.
Municipal Leases. Municipal leases are obligations
issued by state and local governments or authorities to
finance the acquisition of equipment and facilities.
They may take the form of a lease, an installment
purchase contract, a conditional sales contract, or a
participation interest in any of the above.
Ratings. The municipal securities in which the Fund invests
must be rated in one of the two highest short-term rating
categories by one or more nationally recognized statistical
rating organizations ("NRSROs") or be of comparable quality to
securities having such ratings. An NRSRO's two highest rating
categories are determined without regard for sub-categories
and gradations. For example, securities rated SP-1+, SP-1, or
SP-2 by Standard & Poor's Corporation ("S&P"), MIG-1 or MIG-2
by Moody's Investors Service, Inc. ("Moody's"), or FIN-1+, FIN-
1, and FIN-2 by Fitch Investors Service, Inc. ("Fitch") are
all considered rated in one of the two highest short-term
rating categories. The Fund will follow applicable regulations
in determining whether a security rated by more than one NRSRO
can be treated as being in one of the two highest short-term
rating categories; currently, such securities must be rated by
two NRSROs in one of their two highest rating categories. See
"Regulatory Compliance."
Credit Enhancement. Certain of the Fund's acceptable
investments may be credit enhanced by a guaranty, letter of
credit, or insurance. The Fund typically evaluates the credit
quality and ratings of credit enhanced securities based upon
the financial condition and ratings of the party providing the
credit enhancement (the "credit enhancer"), rather than the
issuer. However, credit enhanced securities will not be
treated as having been issued by the credit enhancer for
diversification purposes, unless the Fund has invested more
than 10% of its assets in securities issued, guaranteed or
otherwise credit enhanced by the credit enhancer, in which
case the securities will be treated as having been issued by
both the issuer and the credit enhancer. The bankruptcy,
receivership, or default of the credit enhancer will adversely
affect the quality and marketability of the underlying
security. The Fund may have more than 25% of its total
assets in securities credit enhanced by banks.
Demand Features. The Fund may acquire securities that are
subject to puts and standby commitments ("demand features") to
purchase the securities at their principal amount (usually
with accrued interest) within a fixed period (usually seven
days) following a demand by the Fund. The demand feature may
be issued by the issuer of the underlying securities, a dealer
in the securities, or by another third party, and may not be
transferred separately from the underlying security. The Fund
uses these arrangements to provide the Fund with liquidity and
not to protect against changes in the market value of the
underlying securities. The bankruptcy, receivership, or
default by the issuer of the demand feature, or a default on
the underlying security or other event that terminates the
demand feature before its exercise, will adversely affect the
liquidity of the underlying security. Demand features that are
exercisable even after a payment default on the underlying
security may be treated as a form of credit enhancement.
When-Issued And Delayed Delivery Transactions. The Fund may
purchase securities on a when-issued or delayed delivery
basis. These transactions are arrangements in which the Fund
purchases securities with payment and delivery scheduled for a
future time. The seller's failure to complete these
transactions may cause the Fund to miss a price or yield
considered to be advantageous.
Restricted and Illiquid Securities. The Fund may invest in
restricted securities. Restricted securities are any
securities in which the Fund may invest pursuant to its
investment objective and policies but which are subject to
restrictions on resale under federal securities laws. Under
criteria established by the Trustees, certain restricted
securities are determined to be liquid. To the extent that
restricted securities are not determined to be liquid, the
Fund will limit their purchase, together with other illiquid
securities, to 10% of its net assets.
Temporary Investments. From time to time, when the investment
adviser determines that market conditions call for a temporary
defensive posture, the Fund may invest in tax-exempt or
taxable securities such as: obligations issued by or on behalf
of municipal or corporate issuers having the same quality
characteristics as described above; obligations issued or
guaranteed by the U.S. government, its agencies, or
instrumentalities; instruments issued by a U.S. branch of a
domestic bank or other deposit institution having capital,
surplus, and undivided profits in excess of $100,000,000 at
the time of investment; and repurchase agreements
(arrangements in which the organization selling the Fund a
temporary investment agrees at the time of sale to repurchase
it at a mutually agreed upon time and price).
Although the Fund is permitted to make taxable, temporary
investments, there is no current intention to do so. However,
the interest from certain Florida municipal securities is
subject to the federal alternative minimum tax.
Florida Municipal Securities
Florida municipal securities are generally issued to finance
public works, such as airports, bridges, highways, housing,
hospitals, mass transportation projects, schools, streets, and
water and sewer works. They are also issued to repay
outstanding obligations, to raise funds for general operating
expenses, and to make loans to other public institutions and
facilities.
Florida municipal securities include industrial development
bonds issued by or on behalf of public authorities to provide
financing aid to acquire sites or construct and equip
facilities for privately or publicly owned corporations. The
availability of this financing encourages these corporations
to locate within the sponsoring communities and thereby
increases local employment.
The two principal classifications of Florida municipal
securities are "general obligation" and "revenue" bonds.
General obligation bonds are secured by the issuer's pledge of
its full faith and credit and taxing power for the payment of
principal and interest. Interest on and principal of revenue
bonds, however, are payable only from the revenue generated by
the facility financed by the bond or other specified sources
of revenue. Revenue bonds do not represent a pledge of credit
or create any debt of or charge against the general revenues
of a municipality or public authority. Industrial development
bonds are typically classified as revenue bonds.
Investment Risks
Yields on Florida municipal securities depend on a variety of
factors, including: the general conditions of the short-term
municipal note market and of the municipal bond market; the
size of the particular offering; the maturity of the
obligations; and the rating of the issue. The ability of the
Fund to achieve its investment objective also depends on the
continuing ability of the issuers of Florida municipal
securities and participation interests, or the credit
enhancers of either, to meet their obligations for the payment
of interest and principal when due. In addition, from time to
time, the supply of Florida municipal securities acceptable
for purchase by the Fund could become limited.
The Fund may invest in Florida municipal securities which are
repayable out of revenue streams generated from economically
related projects or facilities and/or whose issuers are
located in the same state. Sizable investments in these
Florida municipal securities could involve an increased risk
to the Fund should any of these related projects or facilities
experience financial difficulties.
Obligations of issuers of Florida municipal securities are
subject to the provisions of bankruptcy, insolvency, and other
laws affecting the rights and remedies of creditors. In
addition, the obligations of such issuers may become subject
to laws enacted in the future by Congress, state legislators,
or referenda extending the time for payment of principal
and/or interest, or imposing other constraints upon
enforcement of such obligations or upon the ability of states
or municipalities to levy taxes. There is also the possibility
that, as a result of litigation or other conditions, the power
or ability of any issuer to pay, when due, the principal of
and interest on its municipal securities may be materially
affected.
Non-Diversification
The Fund is non-diversified. An investment in the Fund,
therefore, will entail greater risk than would exist if it
were diversified because the higher percentage of investments
among fewer issuers may result in greater fluctuation in the
total market value of the Fund's portfolio. Any economic,
political, or regulatory developments affecting the value of
the securities in the Fund's portfolio will have a greater
impact on the total value of the portfolio than would be the
case if the portfolio were diversified among more issuers.
However, the Fund intends to comply with Subchapter M of the
Internal Revenue Code. This undertaking requires that, at the
end of each quarter of each taxable year, with regard to at
least 50% of the Fund's total assets, no more than 5% of its
total assets are invested in the securities of a single issuer
and that with respect to the remainder of the Fund's total
assets, no more than 25% of its total assets are invested in
the securities of a single issuer.
Investment Limitations
The Fund will not borrow money or pledge securities except,
under certain circumstances, the Fund may borrow up to one-
third of the value of its total assets and pledge assets to
secure such borrowings. This investment limitation cannot be
changed without shareholder approval.
Regulatory Compliance
The Fund may follow non-fundamental operational policies that
are more restrictive than its fundamental investment
limitations, as set forth in this prospectus and its Statement
of Additional Information, in order to comply with applicable
laws and regulations, including the provisions of and
regulations under the Investment Company Act of 1940, as
amended. In particular, the Fund will comply with the various
requirements of Rule 2a-7, which regulates money market mutual
funds. The Fund will determine the effective maturity of its
investments, as well as its ability to consider a security as
having received the requisite short-term ratings by NRSROs,
according to Rule 2a-7. The Fund may change these operational
policies to reflect changes in the laws and regulations
without the approval of its shareholders.
Trust Information
Management of the Trust
Board of Trustees. The Trust is managed by a Board of
Trustees. The Trustees are responsible for managing the Fund's
business affairs and for exercising all the Trust's powers
except those reserved for the shareholders. An Executive
Committee of the Board of Trustees handles the Board's
responsibilities between meetings of the Board.
Investment Adviser. Investment decisions for the Fund are made
by Federated Management, the Fund's investment adviser,
subject to direction by the Trustees. The adviser continually
conducts investment research and supervision for the Fund and
is responsible for the purchase and sale of portfolio
instruments.
Advisory Fees. The adviser receives an annual
investment advisory fee equal to .40 of 1% of the
Fund's average daily net assets. The adviser has
undertaken to reimburse the Fund up to the amount of
the advisory fee for operating expenses in excess of
limitations established by certain states. The adviser
also may voluntarily choose to waive a portion of its
fee or reimburse other expenses of the Fund, but
reserves the right to terminate such waiver or
reimbursement at any time at its sole discretion.
Adviser's Background. Federated Management, a Delaware
business trust, organized on April 11, 1989, is a
registered investment adviser under the Investment
Advisers Act of 1940. It is a subsidiary of Federated
Investors. All of the Class A (voting) shares of
Federated Investors are owned by a trust, the trustees
of which are John F. Donahue, Chairman and Trustee of
Federated Investors, Mr. Donahue's wife, and Mr.
Donahue's son, J. Christopher Donahue, who is President
and Trustee of Federated Investors.
Federated Management and other subsidiaries of
Federated Investors serve as investment advisers to a
number of investment companies and private accounts.
Certain other subsidiaries also provide administrative
services to a number of investment companies. Total
assets under management or administration by these and
other subsidiaries of Federated Investors are
approximately $70 billion. Federated Investors, which
was founded in 1956 as Federated Investors, Inc.,
develops and manages mutual funds primarily for the
financial industry. Federated Investors' track record
of competitive performance and its disciplined, risk
averse investment philosophy serve approximately 3,500
client institutions nationwide. Through these same
client institutions, individual shareholders also have
access to this same level of investment expertise.
Other Payments to Financial Institutions
In addition to periodic payments to financial institutions
under the Shareholder Services Plan, certain financial
institutions may be compensated by the adviser or its
affiliates for the continuing investment of customers' assets
in certain funds, including the Fund, advised by those
entities. These payments will be made directly by the
distributor or adviser from their assets, and will not be made
from the assets of the Fund.
Distribution of Shares
Federated Securities Corp. is the principal distributor for
shares of the Fund. It is a Pennsylvania corporation organized
on November 14, 1969, and is the principal distributor for a
number of investment companies. Federated Securities Corp. is
a subsidiary of Federated Investors.
Distribution and Shareholder Services Plans. Under a
distribution plan adopted in accordance with Investment
Company Act Rule 12b-1 (the "Distribution Plan"), the Fund may
pay to the distributor an amount, computed at an annual rate
of .25 of 1% of the average daily net asset value of the Fund
to finance any activity which is principally intended to
result in the sale of shares subject to the Distribution Plan.
The distributor may select Financial Institutions such as
banks, fiduciaries, custodians for public funds, investment
advisers, and broker/dealers to provide sales support services
as agents for their clients or customers.
The Distribution Plan is a compensation-type plan. As such,
the Fund makes no payments to the distributor except as
described above. Therefore, the Fund does not pay for
unreimbursed expenses of the distributor, including amounts
expended by the distributor in excess of amounts received by
it from the Fund, interest, carrying or other financing
charges in connection with excess amounts expended, or the
distributor's overhead expenses. However, the distributor may
be able to recover such amounts or may earn a profit from
future payments made by the Fund under the Distribution Plan.
In addition, the Fund has adopted a Shareholder Services Plan
(the "Services Plan") under which it will pay Financial
Institutions an amount not exceeding .25 of 1% of the average
daily net asset value of the Fund to obtain certain personal
services for shareholders and the maintenance of shareholder
accounts ("shareholder services"). The Fund has entered into
a Shareholder Services Agreement with Federated Shareholder
Services, a subsidiary of Federated Investors, under which
Federated Shareholder Services will either perform services
directly or will select Financial Institutions to perform
shareholder services. Financial Institutions will receive
fees based upon shares owned by their clients or customers.
The schedules of such fees and the basis upon which such fees
will be paid will be determined from time to time by the Fund
and Federated Shareholder Services.
Administration of the Trust
Administrative Services. Federated Administrative Services, a
subsidiary of Federated Investors, provides certain
administrative personnel and services (including certain legal
and accounting services) necessary to operate the Fund.
Federated Administrative Services provides these at an annual
rate as specified below:
Maximum Fee Average Aggregate Daily Net Assets
.15 of 1% on the first $250 million
.125 of 1% on the next $250 million
.10 of 1% on the next $250 million
.075 of 1% on assets in excess of $750 million
The administrative fee received during any fiscal year shall
be at least $125,000 per portfolio. Average aggregate daily
net assets include those of all mutual funds advised by
subsidiaries of Federated Investors.
Federated Administrative Services may choose voluntarily to
waive a portion of its fee.
Custodian. State Street Bank and Trust, Boston, MA is
custodian for the securities and cash of the Fund.
Transfer Agent and Dividend Disbursing Agent. Federated
Services Company, Pittsburgh, PA is transfer agent for the
shares of, and dividend disbursing agent for, the Fund.
Legal Counsel. Legal counsel is provided by Houston, Houston
and Donnelly, Pittsburgh, PA and Dickstein, Shapiro & Morin,
L.L.P., Washington, D.C..
Independent Auditors. The independent Auditors for the Fund
are Arthur Andersen & Co., Pittsburgh, PA.
Expenses of the Fund
The Fund pays all of its own expenses and its allocable share
of Trust expenses. These expenses include, but are not limited
to the cost of: organizing the Trust and continuing its
existence; Trustees' fees; investment advisory and
administrative services; printing prospectuses and other
documents for shareholders; registering the Trust, the Fund,
and shares of the Fund; taxes and commissions; issuing,
purchasing, repurchasing and redeeming shares; fees for
custodians, transfer agents, dividend disbursing agents,
shareholder servicing agents, and registrars; printing,
mailing, auditing, accounting, and legal expenses; reports to
shareholders and government agencies; meetings of Trustees and
shareholders and proxy solicitations therefore; insurance
premiums; association membership dues; and such non-recurring
and extraordinary items as may arise.
Net Asset Value
The Fund attempts to stabilize the net asset value of its
shares at $1.00 by valuing the portfolio securities using the
amortized cost method. The net asset value per share is
determined by subtracting total liabilities from total assets
and dividing the remainder by the number of shares
outstanding. The Fund cannot guarantee that its net asset
value will always remain at $1.00 per share.
The net asset value is determined at 12:00 noon, 1:00 p.m.,
and 4:00 p.m. (Eastern time) Monday through Friday except on:
(i) days on which there are not sufficient changes in the
value of the Fund's portfolio securities that its net asset
value might be materially affected; (ii) days during which no
shares are tendered for redemption and no orders to purchase
shares are received; or (iii) the following holidays: New
Year's Day, Presidents' Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day, and Christmas
Day.
Investing in the Fund
Share Purchases
Shares are sold at their net asset value, without a sales
charge, next determined after an order is received, on days on
which the New York Stock Exchange and the Federal Reserve Wire
System are open for business. Shares may be purchased either
by wire or mail. The Fund reserves the right to reject any
purchase request.
To make a purchase, open an account by calling Federated
Securities Corp. Information needed to establish the account
will be taken by telephone.
Through a Financial Institution. Investors may call their
financial institutions to place an order. Orders through a
financial institution are considered received when the Fund
receives payment by wire or converts payment by check from the
financial institution into federal funds. It is the financial
institution's responsibility to transmit orders promptly.
Financial institutions may charge additional fees for their
services.
By Wire. To purchase by wire, call the Fund. All information
needed will be taken over the telephone, and the order is
considered received when State Street Bank receives payment by
wire. Federal funds should be wired as follows: State Street
Bank and Trust Company, Boston, Massachusetts; Attention;
EDGEWIRE; For Credit to: Florida Municipal Cash Trust, Fund
Number (this number can be found on the account statement or
by contacting the Fund) Group Number or Order Number; Nominee
or Institution Name; and ABA Number 011000028. Shares cannot
be purchased by wire on days on which the New York Stock
Exchange is closed and on federal holidays restricting wire
transfers.
By Mail. To purchase by mail, send a check made payable to
Florida Municipal Cash Trust to State Street Bank and Trust
Company, P.O. Box 8602, Boston, MA 02666-8602. Orders by mail
are considered received when payment by check is converted by
State Street Bank into federal funds. This is normally the
next business day after the check is received.
Minimum Investment Required
The minimum initial investment is $10,000. However, an account
may be opened with a smaller amount as long as the minimum is
reached within 90 days. Minimum investments will be calculated
by combining all accounts maintained with the Fund. Financial
institutions may impose different minimum investment
requirements on their customers.
Subaccounting Services
Financial institutions are encouraged to open single master
accounts. However, certain financial institutions may wish to
use the transfer agent's subaccounting system to minimize
their internal recordkeeping requirements. The transfer agent
charges a fee based on the level of subaccounting services
rendered. Financial institutions may charge or pass through
subaccounting fees as part of or in addition to normal trust
or agency account fees. They may also charge fees for other
services provided which may be related to the ownership of
Fund shares. This prospectus should, therefore, be read
together with any agreement between the customer and the
financial institution with regard to the services provided,
the fees charged for those services and any restrictions and
limitations imposed.
Certificates and Confirmations
As transfer agent for the Fund, Federated Services Company
maintains a share account for each shareholder. Share
certificates are not issued unless requested by contacting the
Fund or Federated Services Company in writing.
Monthly confirmations are sent to report transactions such as
all purchases and redemptions as well as dividends paid during
the month.
Dividends
Dividends are declared daily and paid monthly. Dividends are
automatically reinvested on payment dates in additional shares
of the Fund unless cash payments are requested by writing to
the Fund. Shares purchased by wire before 1:00 p.m. (Eastern
time) begin earning dividends that day. Shares purchased by
check begin earning dividends the day after the check is
converted into federal funds.
Capital Gains
The Fund does not expect to realize any capital gains or
losses. If capital gains or losses were to occur, they could
result in an increase or decrease in dividends. The Fund will
distribute in cash or additional shares any realized net long-
term capital gains at least once every 12 months.
Redeeming Shares
Shares are redeemed at their net asset value next determined
after the Fund receives the redemption request. Redemptions
will be made on days on which the Fund computes its net asset
value. Redemption requests must be received in proper form and
can be made as described below.
Through a Financial Institution
Shares may be redeemed by calling the shareholder's financial
institution. Shares will be redeemed at the net asset value
next determined after the Fund receives the redemption request
from the financial institution. The financial institution is
responsible for promptly submitting redemption requests and
providing proper written redemption instructions. The
financial institution may charge customary fees and
commissions for this services.
An authorization form permitting redemption requests by
telephone must first be completed. Authorization forms and
information on this service are available from Federated
Securities Corp. Telephone redemption instructions may be
recorded. If reasonable procedures are not followed by the
Fund, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.
In the event of drastic economic or market changes, a
shareholder may experience difficulty in redeming by
telephone. If this occurs, another method of redemption, such
as 'By Mail," should be considered.
Receiving Payment. Pursuant to instructions from the financial
institution, redemptions will be made by check or by wire.
By Wire. Proceeds for redemption requests received
before 12:00 noon (Eastern time) will be wired the
same day but will not be entitled to that day's
dividend. Redemption requests received after 12:00
noon (Eastern time) will receive that day's
dividends and will be wired the following business
day.
By Check. Normally, a check for the proceeds is
mailed within one business day, but in no event more
than seven days, after receipt of a proper
redemption request. Dividends are paid up to and
including the day that a redemption request is
processed.
By Mail
Shares may be redeemed by sending a written request to the
transfer agent. The written request should state: Florida
Municipal Cash Trust; shareholder's name; the account number;
and the share or dollar amount requested. Sign the request
exactly as the shares are registered. Shareholders should
call the Fund for assistance in redeeming by mail.
If share certificates have been issued, they must be properly
endorsed and should be sent by registered or certified mail
with the written request.
Shareholders requesting a redemption of $50,000 or more, a
redemption of any amount to be sent to an address other than
that on record with the Fund, or a redemption payable other
than to the shareholder of record must have their signatures
guaranteed by:
oa trust company or commercial bank whose deposits are
insured by the Bank Insurance Fund which is
administered by the Federal Deposit Insurance
Corporation ("FDIC");
oa member firm of the New York, American, Boston,
Midwest, or Pacific Stock Exchanges;
oa savings bank or savings and loan association whose
deposits are insured by the Savings Association
Insurance Fund, which is administered by the FDIC; or
oany other "eligible guarantor institution," as
defined in the Securities Exchange Act of 1934.
The Fund does not accept signatures guaranteed by a notary
public.
The Fund and the transfer agent have adopted standards for
accepting signature guarantees from the above institutions.
The Fund may elect in the future to limit eligible signature
guarantors to institutions that are members of the signature
guarantee program. The Fund and its transfer agent reserve the
right to amend these standards at any time without notice.
Normally, a check for the proceeds is mailed within one
business day, but in no event more than seven days, after
receipt of a proper written redemption request. Dividends are
paid up to and including the day that a redemption request is
processed.
By Writing a Check. At the shareholder's request, State
Street Bank and Trust will establish a checking account for
redeeming shares. A fee is charged for this service. For
further information, contact the Fund.
With this checking account, shares may be redeemed by writing
a check. The redemption will be made at the net asset value on
the date that the check is presented to the Fund. A check may
not be written to close an account. A shareholder may obtain
cash by negotiating the check through the shareholder's local
bank. Checks should never be made payable or sent to State
Street Bank and Trust to redeem shares. Cancelled checks are
sent to the shareholder each month.
Accounts with Low Balances
Due to the high cost of maintaining accounts with low
balances, the Fund may redeem shares in any account and pay
the proceeds to the shareholder if the account balance falls
below a required minimum value of $10,000 due to shareholder
redemptions.
Before shares are redeemed to close an account, the
shareholder is notified in writing and allowed 30 days to
purchase additional shares to meet the minimum requirement.
Shareholder Information
Voting Rights
Each share of the Trust gives the shareholder one vote in
Trustee elections and other matters submitted to shareholders
for vote. All shares of all classes of each portfolio in the
Trust have equal voting rights, except that in matters
affecting only a particular portfolio or class, only shares of
that portfolio or class are entitled to vote. As a
Massachusetts business trust, the Trust is not required to
hold annual shareholder meetings. Shareholder approval will be
sought only for certain changes in the Trust's or the Fund's
operation and for the election of Trustees under certain
circumstances.
Trustees may be removed by the Trustees or by shareholders at
a special meeting. A special meeting of the shareholders for
this purpose shall be called by the Trustees upon the written
request of shareholders owning at least 10% of the outstanding
shares of the Trust.
Massachusetts Partnership Law
Under certain circumstances, shareholders may be held
personally liable as partners under Massachusetts law for
obligations of the Trust. To protect its shareholders, the
Trust has filed legal documents with Massachusetts that
expressly disclaim the liability of its shareholders for acts
or obligations of the Trust. These documents require notice of
this disclaimer to be given in each agreement, obligation, or
instrument the Trust or its Trustees enter into or sign.
In the unlikely event a shareholder is held personally liable
for the Trust's obligations, the Trust is required by the
Declaration of Trust to use its property to protect or
compensate the shareholder. On request, the Trust will defend
any claim made and pay any judgment against a shareholder for
any act or obligation of the Trust. Therefore, financial loss
resulting from liability as a shareholder will occur only if
the Trust itself cannot meet its obligations to indemnify
shareholders and pay judgments against them.
Tax Information
Federal Income Tax
The Fund will pay no federal income tax because it expects to
meet requirements of the Internal Revenue Code applicable to
regulated investment companies and to receive the special tax
treatment afforded to such companies.
The Fund will be treated as a single, separate entity for
federal income tax purposes so that income (including capital
gains) and losses realized by the Trust's other portfolios
will not be combined for tax purposes with those realized by
the Fund.
Shareholders are not required to pay the federal regular
income tax on any dividends received from the Fund that
represent net interest on tax-exempt municipal bonds. However,
under the Tax Reform Act of 1986, dividends representing net
interest earned on certain "private activity" bonds issued
after August 7, 1986, may be included in calculating the
federal individual alternative minimum tax or the federal
alternative minimum tax for corporations. The Fund may
purchase all types of municipal bonds, including private
activity bonds.
The alternative minimum tax applies when it exceeds the
regular tax for the taxable year. Alternative minimum taxable
income is equal to the regular taxable income of the taxpayer
increased by certain "tax preference" items not included in
regular taxable income and reduced by only a portion of the
deductions allowed in the calculation of the regular tax.
Dividends of the Fund representing net interest income earned
on some temporary investments and any realized net short-term
gains are taxed as ordinary income.
These tax consequences apply whether dividends are received in
cash or as additional shares.
State and Local Taxes
Income from the Fund is not necessarily free from taxes in
states other than Florida. Shareholders are urged to consult
their own tax advisers regarding the status of their accounts
under state and local tax laws.
Florida Intangibles Tax
Shareholders of the Fund that are subject to the Florida
intangibles tax will not be required to include the value of
their Fund shares in their taxable intangible property if all
of the Fund's investments on the annual assessment date are
obligations that would be exempt from such tax if held
directly by such shareholders, such as Florida and U.S.
government obligations. As described earlier, the Fund will
normally attempt to invest substantially all of its assets in
securities which are exempt from the Florida intangibles tax.
Accordingly, the value of the Fund shares held by a
shareholder should under normal circumstances be exempt from
the Florida intangibles tax.
However, if the portfolio consists of any assets which are not
so exempt on the annual assessment date, only the portion of
the shares of the Fund which relate to securities issued by
the United States and its possessions and territories will be
exempt from the Florida intangibles tax, and the remaining
portion of such shares will be fully subject to the
intangibles tax, even if they partly relate to Florida tax
exempt securities.
Florida State Municipal Taxation
In a majority of states that have an income tax, dividends
paid by a mutual fund attributable to investments in a
particular state's municipal obligations are exempt from both
Federal and such state's income tax. If Florida were to adopt
an income tax in the future, and assuming that its income tax
policy with respect to mutual funds investing in Florida state
and local municipal obligations would be similar to the
general tax policy of other states, dividends paid by the Fund
would be exempt from Florida state income tax. A
constitutional amendment approved by referendum would be
required before an individual income tax could be imposed.
Performance Information
From time to time the Fund advertises its yield, effective
yield, and tax-equivalent yield.
Yield represents the annualized rate of income earned on an
investment over a seven-day period. It is the annualized
dividends earned during the period on an investment shown as a
percentage of the investment. The effective yield is
calculated similarly to the yield, but when annualized, the
income earned by an investment is assumed to be reinvested
daily. The effective yield will be slightly higher than the
yield because of the compounding effect of this assumed
reinvestment. The tax-equivalent yield is calculated similarly
to the yield, but is adjusted to reflect the taxable yield
that would have to be earned to equal the Fund's tax exempt
yield, assuming a specific tax rate.
Advertisements and sales literature may also refer to total
return. Total return represents the change, over a specified
period of time, in the value of an investment in the Fund
after reinvesting all income distributions. It is calculated
by dividing that change by the initial investment and is
expressed as a percentage.
From time to time, the Fund may advertise its performance
using certain reporting services and/or compare its
performance to certain indices.
Addresses
Florida Municipal Cash Trust Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
Distributor
Federated Securities Corporation Federated Investors Tower
Pittsburgh, PA 15222-3779
Investment Adviser
Federated Management Federated Investors Tower
Pittsburgh, PA 15222-3779
Custodian
State Street Bank and Trust P.O. Box 8602
Boston, MA 02266-8602
Transfer Agent and Dividend Disbursing Agent
Federated Services Company Federated Investors Tower
Pittsburgh, PA 15222-3779
Legal Counsel
Houston, Houston and Donnelly 2510 Centre City Tower
Pittsburgh, PA 15222
Legal Counsel
Dickstein, Shapiro & Morin, L.L.P. 2101 L Street, N.W.
Washington, D.C. 20037
Independent Public Accountants
Arthur Andersen & Co. 2100 One PPG Place
Pittsburgh, PA 15222
Florida Municipal
Cash Trust
Prospectus
A non-diversified Portfolio of Federated
Municipal Trust, an Open-End Management
Investment Company
Prospectus dated September __, 1994
Federated Securities Corporation
IF Federated fund, this should be Federated Securities
Corp.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
SUBJECT TO COMPLETION, DATED JULY 21, 1994
INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR
AMENDMENT. A REGISTRATION STATEMENT RELATING TO THESE
SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS
TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION
STATEMENT BECOMES EFFECTIVE. THIS PROSPECTUS SHALL NOT
CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO
BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY
STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE
UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE
SECURITIES LAWS OF ANY SUCH STATE.
Florida Municipal Cash Trust
(A Portfolio of Federated Municipal Trust)
STATEMENT OF ADDITIONAL INFORMATION
This Statement of Additional Information should be read with
the prospectus of Florida Municipal Cash Trust (the "Fund")
dated September __, 1994. This Statement is not a prospectus.
To receive a copy of a prospectus, write or call Federated
Municipal Trust.
Statement dated September __, 1994
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PENNSYLVANIA 15222-3779
Investment Policies 1
Acceptable
Investments 1
Participation
Interests 1
Municipal Leases 1
When-Issued And
Delayed Delivery
Transactions 1
Repurchase
Agreements 1
Florida Investment
Risks 2
Investment
Limitations 2
Selling Short and
Buying on Margin 2
Issuing Senior
Securities and
Borrowing Money 2
Pledging Assets 3
Lending Cash or
Securities 3
Investing in
Commodities 3
Investing in Real
Estate 3
Underwriting 3
Concentration of
Investments 3
Investing in
Restricted
Securities 3
Investing in
Illiquid
Securities 3
Investing in
Securities of
Other Investment
Companies 3
Investing in New
Issuers 3
Investing for
Control 3
Investing in
Issuers Whose
Securities Are
Owned by Officers
of the Fund 4
Investing in
Options 4
Investing in
Minerals 4
Federated Municipal
Trust Management 4
The Funds 8
Share Ownership 8
Trustee Liability 8
Investment Advisory
Services 8
Investment Adviser 8
Advisory Fees 9
Fund Administration 9
Distribution and
Shareholder
Services Plans 9
Determining Net
Asset Value 10
Redemption in Kind 10
The Fund's Tax
Status 10
Performance
Information 11
Yield 11
Effective Yield 11
Tax-Equivalency
Table 11
Total Return 11
Performance
Comparisons 12
Appendix 1
Investment Policies
Unless indicated otherwise, the policies described below may
be changed by the Trustees without shareholder approval.
Shareholders will be notified before any material change in
these policies becomes effective.
Acceptable Investments
When determining whether a municipal security presents minimal
credit risks, the investment adviser will consider the
creditworthiness of: the issuer of a municipal security, the
issuer of a demand feature if the Fund has the unconditional
right to demand payment for the municipal security, or any
guarantor of payment by either of those issuers.
Participation Interests
The financial institutions from which the Fund purchases
participation interests frequently provide or secure from
another financial institution irrevocable letters of credit or
guarantees and give the Fund the right to demand payment of
the principal amounts of the participation interests plus
accrued interest on short notice (usually within seven days).
The municipal securities subject to the participation
interests are not limited to the Fund's maximum maturity
requirements so long as the participation interests include
the right to demand payment from the issuers of those
interests. By purchasing participation interests having a
seven day demand feature, the Fund is buying a security
meeting the maturity and quality requirements of the Fund and
also is receiving the tax-free benefits of the underlying
securities.
Municipal Leases
The Fund may purchase municipal securities in the form of
participation interests that represent an undivided
proportional interest in lease payments by a governmental or
nonprofit entity. The lease payments and other rights under
the lease provide for and secure payments on the certificates.
Lease obligations may be limited by municipal charter or the
nature of the appropriation for the lease. Furthermore, a
lease may provide that the participants cannot accelerate
lease obligations upon default. The participants would only be
able to enforce lease payments as they became due. In the
event of a default or failure of appropriation, unless the
participation interests are credit enhanced, it is unlikely
that the participants would be able to obtain an acceptable
substitute source of payment.
In determining the liquidity of municipal lease securities,
the investment adviser, under the authority delegated by the
Board of Trustees, will base its determination on the
following factors: whether the lease can be terminated by the
lessee; the potential recovery, if any, from a sale of the
leased property upon termination of the lease; the lessee's
general credit strength (e.g., its debt, administrative,
economic and financial characteristics and prospects); the
likelihood that the lessee will discontinue appropriating
funding for the leased property because the property is no
longer deemed essential to its operations (e.g., the potential
for an "event of non-appropriation"); and any credit
enhancement or legal recourse provided upon an event of non-
appropriation or other termination of the lease.
When-Issued And Delayed Delivery Transactions
These transactions are made to secure what is considered to be
an advantageous price or yield for the Fund. Settlement dates
may be a month or more after entering into these transactions,
and the market values of the securities purchased may vary
from the purchase prices. No fees or other expenses, other
than normal transaction costs, are incurred. However, liquid
assets of the Fund sufficient to make payment for the
securities to be purchased are segregated on the Fund's
records at the trade date. These assets are marked to market
daily and are maintained until the transaction has been
settled. The Fund does not intend to engage in when-issued
and delayed delivery transactions to an extent that would
cause the segregation of more than 20% of the total value of
its assets.
Repurchase Agreements
Certain securities in which the Fund invests may be purchased
pursuant to repurchase agreements. Repurchase agreements are
arrangements in which banks, brokers/dealers, and other
recognized financial institutions sell securities to the Fund
and agree at the time of sale to repurchase them at a mutually
agreed upon time and price. To the extent that the seller does
not repurchase the securities from the Fund, the Fund could
receive less than the repurchase price on any sale of such
securities. The Fund or its custodian will take possession of
the securities subject to repurchase agreements, and these
securities will be marked to market daily. In the event that
a defaulting seller filed for bankruptcy or became insolvent,
disposition of such securities by the Fund might be delayed
pending court action. The Fund believes that under the regular
procedures normally in effect for custody of the Fund's
portfolio securities subject to repurchase agreements, a court
of competent jurisdiction would rule in favor of the Fund and
allow retention or disposition of such securities. The Fund
will only enter into repurchase agreements with banks and
other recognized financial institutions, such as
broker/dealers, which are deemed by the Fund's adviser to be
creditworthy pursuant to guidelines established by the
Trustees.
Florida Investment Risks
The Fund invests in obligations of Florida issuers which
results in the Fund's performance being subject to risks
associated with the overall conditions present within the
state. The following information is a brief summary of the
recent prevailing economic conditions and a general summary of
the state's financial status. This information is based on
official statements relating to securities that have been
offered by Florida issuers and from other sources believed to
be reliable but should not be relied upon as a complete
description of all relevant information.
Florida is the twenty-second largest state with an area of
54,136 square miles and a water area of 4,424 square miles.
The state is 447 miles long and 361 miles wide with a tidal
shoreline of almost 2,300 miles. According to the U.S. Census
Bureau, Florida moved past Illinois in 1986 to become the
fourth most populous state, and as of 1990, had an estimated
population of 13.2 million.
Services and trade continue to be the largest components of
the Florida economy, reflecting the importance of tourism as
well as the need to serve Florida's rapidly growing
population. Agriculture is also an important part of the
economy, particularly citrus fruits. Oranges have been the
principal crop, accounting for 70% of the nation's output.
Manufacturing, although of less significance, is a rapidly
growing component of the economy. The economy also has
substantial insurance, banking, and export participation.
Unemployment rates have historically been below national
averages, but have recently risen above the national rate.
Section 215.32, Florida Statutes, provides that financial
operations of the State of Florida covering all receipts and
expenditures must be maintained through the use of three funds-
- -the General Revenue Fund, the Trust Fund, and the Working
Capital Fund. The General Revenue Fund receives the majority
of State tax revenues. The Working Capital Fund receives
revenues in excess of appropriations and its balances are
freely transferred to the General Revenue Fund as necessary.
In November, 1992, Florida voters approved a constitutional
amendment requiring the state to fund a Budget Stabilization
Fund to 5% of general revenues, with funding to be phased in
over five years beginning in fiscal 1995. The Working Capital
Fund will become the Budget Stabilization Fund. Major sources
of tax revenues to the General Revenue Fund are the sale and
use tax, corporate income tax and beverage tax.
The over-dependence on the sensitive sales tax creates
vulnerability to recession. Accordingly, financial operations
have been strained during the past few years, but the state
has responded in a timely manner to maintain budgetary
control.
Hurricane Andrew devastated portions of southern Florida in
August 1992, costing billions of dollars in emergency relief,
damage, and repair costs. However, the overall financial
condition of the major issuers of municipal bond debt in the
state were relatively unaffected by Hurricane Andrew, due to
federal disaster payments and the overall level of private
insurance. However, it is possible that single revenue-based
local bond issues could be severly impacted by storm damage in
certain circumstances.
Florida's debt structure is complex. Most state debt is
payable from specified taxes and additionally secured by the
full faith and credit of the state. Under the general
obligation pledge, to the extent specified taxes are
insufficient, the state is unconditionally required to make
payment on bonds from all non-dedicated taxes.
The Fund's concentration in securities issued by the state and
its political subdivisions provides a greater level of risk
than a fund which is diversified across numerous states and
municipal entities. The ability of the state or its
municipalities to meet their obligations will depend on the
availability of tax and other revenues; economic, political,
and demographic conditions within the state; and the
underlying condition of the state , and its municipalities.
Investment Limitations
Selling Short and Buying on Margin
The Fund will not sell any securities short or purchase any
securities on margin but may obtain such short-term credits as
are necessary for clearance of transactions.
Issuing Senior Securities and Borrowing Money
The Fund will not issue senior securities except that the Fund
may borrow money in amounts up to one-third of the value of
its total assets, including the amounts borrowed.
The Fund will not borrow money for investment leverage, but
rather as a temporary, extraordinary, or emergency measure or
to facilitate management of the portfolio by enabling the Fund
to meet redemption requests when the liquidation of portfolio
securities is deemed to be inconvenient or disadvantageous.
The Fund will not purchase any securities while borrowings in
excess of 5% of the value of its total assets are outstanding.
Pledging Assets
The Fund will not mortgage, pledge, or hypothecate any assets
except as necessary to secure permitted borrowings.
Lending Cash or Securities
The Fund will not lend any of its assets, except that it may
purchase or hold portfolio securities permitted by its
investment objective, policies, and limitations, or
Declaration of Trust.
Investing in Commodities
The Fund will not purchase or sell commodities, commodity
contracts, or commodity futures contracts.
Investing in Real Estate
The Fund will not purchase or sell real estate, including
limited partnership interests, although it may invest in
securities of issuers whose business involves the purchase or
sale of real estate or in securities which are secured by real
estate or interests in real estate.
Underwriting
The Fund will not underwrite any issue of securities, except
as it may be deemed to be an underwriter under the Securities
Act of 1933 in connection with the sale of securities in
accordance with its investment objective, policies, and
limitations.
Concentration of Investments
The Fund will not invest 25% or more of the value of its total
assets in any one industry, or in industrial development bonds
or other securities the interest upon which is paid from
revenues of similar types of projects, except that the Fund
may invest 25% or more of the value of its total assets in
cash, cash items, or securities issued or guaranteed by the
government of the United States or its agencies, or
instrumentalities and repurchase agreement collateralized by
such U.S. government securities.
The above limitations cannot be changed without shareholder
approval. The following investment limitations, however, may
be changed by Trustees without shareholder approval.
Shareholders will be notified before any material change in
these limitations becomes effective.
Investing in Restricted Securities
The Fund will not invest more than 10% of its total assets in
securities subject to restrictions on resale under federal
securities law, except for restricted securities determined to
be liquid under criteria established by the Trustees.
Investing in Illiquid Securities
The Fund will not invest more than 10% of the value of its net
assets in illiquid securities.
Investing in Securities of Other Investment Companies
The Fund will not purchase securities of other investment
companies, except as part of a merger, consolidation, or other
acquisition.
Investing in New Issuers
The Fund will not invest more than 5% of the value of its
total assets in securities of issuers (including companies
responsible for paying principal and interest on industrial
development bonds) which have records of less than three years
of continuous operations, including the operation of any
predecessor.
Investing for Control
The Fund will not invest in securities of a company for the
purpose of exercising control or management.
Investing in Issuers Whose Securities Are Owned by
Officers of the Fund
The Fund will not purchase or retain the securities of any
issuer if the Officers and Trustees of the Fund or its
investment adviser owning individually more than .50 of 1% of
the issuer's securities together own more than 5% of the
issuer's securities.
Investing in Options
The Fund will not invest in puts, calls, straddles, spreads,
or any combination of them.
Investing in Minerals
The Fund will not purchase or sell interests in oil, gas, or
other mineral exploration or development programs or leases,
although it may purchase the securities of issuers which
invest in or sponsor such programs.
For purposes of the above limitations, the Fund considers
certificates of deposit and demand and time deposits issued by
a U.S. branch of a domestic bank or savings and loan having
capital, surplus, and undivided profits in excess of
$100,000,000 at the time of investment to be "cash items".
Except with respect to borrowing money, if a percentage
limitation is adhered to at the time of investment, a later
increase or decrease in percentage resulting from any change
in value or net assets will not result in a violation of such
limitation.
The Fund does not intend to borrow money or pledge securities
in excess of 5% of the value of its net assets during the
coming fiscal year.
Brokerage Transactions
When selecting brokers and dealers to handle the purchase and
sale of portfolio instruments, the adviser looks for prompt
execution of the order at a favorable price. In working with
dealers, the adviser will generally use those who are
recognized dealers in specific portfolio instruments, except
when a better price and execution of the order can be obtained
elsewhere. The adviser makes decisions on portfolio
transactions and selects brokers and dealers subject to
guidelines established by the Board of Trustees. The adviser
may select brokers and dealers who offer brokerage and
research services. These services may be furnished directly
to the Fund or to the adviser and may include: advice as to
the advisability of investing in securities; security analysis
and reports; economic studies; industry studies; receipt of
quotations for portfolio evaluations; and similar services.
Research services provided by brokers and dealers may be used
by the adviser or its affiliates in advising the Trust and
other accounts. To the extent that receipt of these services
may supplant services for which the adviser or its affiliates
might otherwise have paid, it would tend to reduce their
expenses. The adviser and its affiliates exercise reasonable
business judgment in selecting brokers who offer brokerage and
research services to execute securities transactions. They
determine in good faith that commissions charged by such
persons are reasonable in relationship to the value of the
brokerage and research services provided.
Although investment decisions for the Fund are made
independently from those of the other accounts managed by the
adviser, investments of the type the Fund may make may also be
made by those other accounts. When the Fund and one or more
other accounts managed by the adviser are prepared to invest
in, or desire to dispose of, the same security, available
investments or opportunities for sales will be allocated in a
manner believed by the adviser to be equitable to each. In
some cases, this procedure may adversely affect the price paid
or received by the Fund or the size of the position obtained
or disposed of by the Fund. In other cases, however, it is
believed that coordination and the ability to participate in
volume transactions will be to the benefit of the Fund.
Federated Municipal Trust Management
Officers and Trustees are listed with their addresses,
principal occupations, and present positions.
Positions with Principal Occupations
Name and Address the Trust/Fund During Past Five Years
John F. Donahue@* Chairman Chairman and Trustee, Federated
Federated Investors and Investors; Chairman and Trustee,
Tower Trustee Federated Advisers, Federated
Pittsburgh, PA Management, and Federated
Research; Director, AEtna Life
and Casualty Company; Chief
Executive Officer and Director,
Trustee, or Managing General
Partner of the Funds; formerly,
Director, The Standard Fire
Insurance Company. Mr. Donahue
is the father of J. Christopher
Donahue, Vice President
of the Trust.
John T. Conroy, Jr. Trustee President, Investment Properties
Wood/IPC Commercial Corporation; Senior Vice-President,
Department John R. Wood and Associates, Inc.,
John R. Wood and Realtors; President, Northgate
Associates, Inc., Realtors Village Development Corporation;
3255 Tamiami Trail North General Partner or Trustee in
Naples, FL private real estate ventures in
Southwest Florida; Director,
Trustee, or Managing General
Partner of the Funds; formerly,
President, Naples Property
Management, Inc.
William J. Copeland Trustee Director and Member of the
One PNC Plaza - 23rd Floor Executive Committee, Michael
Pittsburgh, PA Baker, Inc.; Director, Trustee,
or Managing General Partner of
the Funds; formerly, Vice
Chairman and Director, PNC
Bank, N.A., and PNC Bank Corp.
and Director, Ryan Homes, Inc.
James E. Dowd Trustee Attorney-at-law; Director, The
571 Hayward Mill Road Emerging Germany Fund, Inc.;
Concord, MA Director, Trustee, or Managing
General Partner of the Funds;
formerly, Director, Blue Cross
of Massachusetts, Inc.
Lawrence D. Ellis, M.D. Trustee Hematologist, Oncologist, and
3471 Fifth Avenue Internist, Presbyterian and
Suite 1111 Montefiore Hospitals; Clinical
Pittsburgh, PA Professor of Medicine and
Trustee, University of
Pittsburgh; Director, Trustee,
or Managing General Partner of
the Funds.
Edward L. Flaherty, Jr.@ Trustee Attorney-at-law; Partner, Meyer
5916 Penn Mall and Flaherty; Director, Eat'N
Pittsburgh, PA Park Restaurants, Inc., and
Statewide Settlement Agency,
Inc.; Director, Trustee, or
Managing General Partner of
the Funds; formerly, Counsel,
Horizon Financial, F.A.,
Western Region.
Peter E. Madden Trustee Consultant; State Representative,
225 Franklin Street Commonwealth of Massachusetts;
Boston, MA Director, Trustee, or Managing
General Partner of the Funds;
formerly, President, State Street
Bank and Trust Company and
State Street Boston Corporation
and Trustee, Lahey Clinic
Foundation, Inc.
Gregor F. Meyer Trustee Attorney-at-law; Partner, Meyer
5916 Penn Mall and Flaherty; Chairman, Meritcare,
Pittsburgh, PA Inc.; Director, Eat'N Park
Restaurants, Inc.; Director, Trustee,
or Managing General Partner of the
Funds; formerly, Vice Chairman,
Horizon Financial, F.A.
Wesley W. Posvar Trustee Professor, Foreign Policy and
1202 Cathedral of Management Consultant; Trustee,
Learning Carnegie Endowment for
University of Pittsburgh International Peace, RAND
Pittsburgh, PA Corporation, Online Computer
Library Center, Inc., and U.S.
Space Foundation; Chairman,
Czecho Slovak Management
Center; Director, Trustee, or
Managing General Partner of the
Funds; President Emeritus,
University of Pittsburgh; formerly,
Chairman, National Advisory
Council for Environmental Policy
and Technology.
Marjorie P. Smuts Trustee Public relations/marketing
4905 Bayard Street consultant; Director, Trustee,
Pittsburgh, PA or Managing General Partner of
the Funds.
Glen R. Johnson * President and Trustee, Federated Investors;
Federated Investors Trustee President and/or Trustee of
Tower some of the Funds; staff member,
Pittsburgh, PA Federated Securities Corp. and
Federated Administrative Services
J. Christopher Vice President President and Trustee,
Donahue Federated
Investors;Federated Investors Federated Advisers, Federated
Tower Management and Federated
Pittsburgh, PA Research, Director and President,
Federated Research Corp.;
President, Passport Research,
Ltd.; Trustee, Federated Administrative
Services; Federated Services Company,
and Federated Shareholder Services;
President or Vice President of
the Funds; Director, Trustee, or
Managing General Partner of
some of the Funds. Mr. Donahue
is the son of John F. Donahue,
Chairman and Trustee of the Trust.
Richard B. Fisher Vice President Executive Vice President and
Federated Investors Trustee, Federated Investors;
Tower Chairman and Director,
Pittsburgh, PA Federated Securities Corp.;
President or Vice President of
the Funds; Director or Trustee
of some of the Funds.
Edward C. Gonzales Vice President Vice President, Treasurer, and
Federated Investors and Treasurer Trustee, Federated Investors; Vice
Tower President and Treasurer, Federated
Pittsburgh, PA Advisers, Federated Management,
and Federated Research; Executive
Vice President, Treasurer, and
Director, Federated Securities Corp.;
Trustee, Federated Services
Company; Chairman, Treasurer,
and Trustee, Federated
Administrative Services;
Trustee or Director of some of the
Funds; Vice President and
Treasurer of the Funds.
John W. McGonigle Vice President Vice President, Secretary, General
Federated Investors and Secretary Counsel, and Trustee, Federated
Tower Investors; Vice President, Secretary,
Pittsburgh, PA and Trustee, Federated Advisers,
Federated Management, and
Federated Research; Trustee,
Federated Services Company;
Executive Vice President, Secretary,
and Trustee, Federated
Administrative Services
Director and Executive Vice
President, Federated Securities
Corp.; Vice President and Secretary
of the Funds.
* This Trustee is deemed to be an "interested person" of the
Trust as defined in the Investment Company Act of 1940.
@ Member of the Trust's Executive Committee. The Executive
Committee of the Board of Trustees handles the
responsibilities of the Board of Trustees between meetings
of the Board.
The Funds
As referred to in the list of Trustees and Officers, "Funds"
includes the following investment companies:
American Leaders Fund, Inc.; Annuity Management Series;
Automated Cash Management Trust; Automated Government Money
Trust; California Municipal Cash Trust; Cash Trust Series II;
Cash Trust Series, Inc.; DG Investor Series; Edward D. Jones &
Co. Daily Passport Cash Trust; Federated ARMs Fund; Federated
Exchange Fund, Ltd.; Federated GNMA Trust; Federated
Government Trust; Federated Growth Trust; Federated High Yield
Trust; Federated Income Securities Trust; Federated Income
Trust; Federated Index Trust; Federated Intermediate
Government Trust; Federated Master Trust; Federated Municipal
Trust; Federated Short-Intermediate Government Trust;
Federated Short-Term U.S. Government Trust; Federated Stock
Trust; Federated Tax-Free Trust; Federated U.S. Government
Bond Fund; First Priority Funds; Fixed Income Securities,
Inc.; Fortress Adjustable Rate U.S. Government Fund, Inc.;
Fortress Municipal Income Fund, Inc.; Fortress Utility Fund,
Inc.; Fund for U.S. Government Securities, Inc.; Government
Income Securities, Inc.; High Yield Cash Trust; Insight
Institutional Series, Inc.; Insurance Management Series;
Intermediate Municipal Trust; International Series, Inc.;
Investment Series Funds, Inc.; Investment Series Trust;
Liberty Equity Income Fund, Inc.; Liberty High Income Bond
Fund, Inc.; Liberty Municipal Securities Fund, Inc.; Liberty
U.S. Government Money Market Trust; Liberty Term Trust, Inc. -
1999; Liberty Utility Fund, Inc.; Liquid Cash Trust; Managed
Series Trust; Mark Twain Funds; Money Market Management, Inc.;
Money Market Obligations Trust; Money Market Trust; Municipal
Securities Income Trust; New York Municipal Cash Trust; 111
Corcoran Funds; Peachtree Funds; The Planters Funds; Portage
Funds; RIMCO Monument Funds; The Shawmut Funds; Short-Term
Municipal Trust; Signet Select Funds; Star Funds; The
Starburst Funds; The Starburst Funds II; Stock and Bond Fund,
Inc.; Sunburst Funds; Targeted Duration Trust; Tax-Free
Instruments Trust; Trademark Funds; Trust for Financial
Institutions; Trust For Government Cash Reserves; Trust for
Short-Term U.S. Government Securities; Trust for U.S. Treasury
Obligations; World Investment Series, Inc.
Share Ownership
Officers and Trustees own less than 1% of the Trust's
outstanding shares.
Trustee Liability
The Declaration of Trust provides that the Trustees will not
be liable for errors of judgment or mistakes or fact or law.
However, they are not protected against any liability to which
they would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence, or reckless
disregard of the duties involved in the conduct of their
office.
Investment Advisory Services
Investment Adviser
The Florida Municipal Cash Trust's investment adviser is
Federated Management. It is a subsidiary of Federated
Investors. All the voting securities of Federated Investors
are owned by a trust, the trustees of which are John F.
Donahue, his wife and his son, J. Christopher Donahue.
The adviser shall not be liable to Trust, the Fund, or any
shareholder of the Fund for any losses that may be sustained
in the purchase, holding, or sale of any security or for
anything done or omitted by it, except acts or omissions
involving willful misfeasance, bad faith, gross negligence, or
reckless disregard of the duties imposed upon it by its
contract with Trust.
Advisory Fees
For its advisory services, Federated Management receives an
annual investment advisory fee as described in the prospectus.
State Expense Limitations
The adviser has undertaken to comply with the expense
limitations established by certain states for investment
companies whose shares are registered for sale in those
states. If the Fund's normal operating expenses
(including the investment advisory fee, but not including
brokerage commissions, interest, taxes, and extraordinary
expenses) exceed 2-1/2% per year of the first $30 million
of average net assets, 2% per year of the next $70
million of average net assets, and 1-1/2% per year of the
remaining average net assets, the adviser will reimburse
the Fund for its expenses over the limitation.
If the Fund's monthly projected operating expenses exceed
this limitation, the investment advisory fee paid will be
reduced by the amount of the excess, subject to an annual
adjustment. If the expense limitation is exceeded, the
amount to be reimbursed by the adviser will be limited,
in any single fiscal year, by the amount of the
investment advisory fees.
This arrangement is not part of the advisory contract and
may be amended or rescinded in the future.
Fund Administration
Federated Administrative Services, a subsidiary of Federated
Investors, provides administrative personnel and services to
the Fund for a fee as described in the prospectus.
Dr. Henry J. Gailliot, an officer of Federated Management, the
adviser to the Fund, holds approximately 20% of the
outstanding common stock and serves as director of Commercial
Data Services, Inc., a company which provides computer
processing services to Federated Administrative Services, Inc.
and Federated Administrative Services.
Distribution and Shareholder Services Plans
These arrangements permit the payment of fees to Financial
Institutions, the distributor and Federated Shareholder
Services to stimulate distribution activities and to cause
services to be provided to shareholders by a representative
who has knowledge of the shareholder's particular
circumstances and goals. These activities and services may
include, but are not limited to, marketing efforts; providing
office space, equipment, telephone facilities, and various
clerical, supervisory, computer, and other personnel as
necessary or beneficial to establish and maintain shareholder
accounts and records; processing purchase and redemption
transactions and automatic investments of client account cash
balances; answering routine client inquiries; and assisting
clients in changing dividend options, account designations,
and addresses.
By adopting the Distribution Plan, the Board of Trustees
expects that the Fund will be able to achieve a more
predictable flow of cash for investment purposes and to meet
redemptions. This will facilitate more efficient portfolio
management and assist the Fund in pursuing its investment
objective. By identifying potential investors whose needs are
served by the Fund's objective, and properly servicing these
accounts, it may be possible to curb sharp fluctuations in
rates of redemptions and sales.
Other benefits, which may be realized under either
arrangement, may include: (1) providing personal services to
shareholders; (2) investing shareholder assets with a minimum
of delay and administrative detail; (3) enhancing shareholder
recordkeeping systems; and (4) responding promptly to
shareholders' requests and inquiries concerning their
accounts.
Custodian and Portfolio Recordkeeper. State Street Bank and
Trust, Boston, MA is custodian for the securities and cash of
the Fund. Federated Services Company, Pittsburgh, PA provides
certain accounting and recordkeeping services with respect to
the Fund's portfolio investments.
Transfer Agent
As transfer agent, Federated Services Company maintains all
necessary shareholder records. For its services, the transfer
agent receives a fee based on the level of subaccounting
services rendered.
Determining Net Asset Value
The Trustees have decided that the best method for determining
the value of portfolio instruments is amortized cost. Under
this method, portfolio instruments are valued at the
acquisition cost as adjusted for amortization of premium or
accumulation of discount rather than at current market value.
Accordingly, neither the amount of daily income nor the net
asset value is affected by any unrealized appreciation or
depreciation of the portfolio. In periods of declining
interest rates, the indicated daily yield on shares of the
Fund computed by dividing the annualized daily income on the
Fund's portfolio by the net asset value computed as above may
tend to be higher than a similar computation made by using a
method of valuation based upon market prices and estimates. In
periods of rising interest rates, the opposite may be true.
The Fund's use of the amortized cost method of valuing
portfolio instruments depends on its compliance with certain
conditions in Rule 2a-7 (the "Rule") promulgated by the
Securities and Exchange Commission under the Investment
Company Act of 1940. Under the Rule, the Trustees must
establish procedures reasonably designed to stabilize the net
asset value per share, as computed for purposes of
distribution and redemption, at $1.00 per share, taking into
account current market conditions and the Fund's investment
objective. The procedures include monitoring the relationship
between the amortized cost value per share and the net asset
value per share based upon available indications of market
value. The Trustees will decide what, if any, steps should be
taken if there is a difference of more than 0.5 of 1% between
the two values. The Trustees will take any steps they consider
appropriate (such as redemption in kind or shortening the
average portfolio maturity) to minimize any material dilution
or other unfair results arising from differences between the
two methods of determining net asset value.
Redemption in Kind
The Fund is obligated to redeem shares solely in cash up to
$250,000 or 1% of the Fund's net asset value, whichever is
less, for any one shareholder within a 90-day period. Any
redemption beyond this amount will also be in cash unless the
Trustees determine that further payments should be in kind.
In such cases, the Fund will pay all or a portion of the
remainder of the redemption in portfolio instruments valued in
the same way as the Fund determines net asset value. The
portfolio instruments will be selected in a manner that the
Trustees deem fair and equitable. Redemption in kind is not
as liquid as a cash redemption. If redemption is made in
kind, shareholders who sell these securities could receive
less than the redemption value and could incur certain
transaction costs.
The Fund's Tax Status
To qualify for the special tax treatment afforded to regulated
investment companies, the Fund must, among other
requirements: derive at least 90% of its gross income from
dividends, interest, and gains from the sale of securities;
derive less than 30% of its gross income from the sale of
securities held less than three months; invest in securities
within certain statutory limits; and distribute to its
shareholders at least 90% of its net income earned during the
year.
Performance Information
Performance depends upon such variables as: portfolio quality;
average portfolio maturity; type of instruments in which the
portfolio is invested; changes in interest rates; changes in
expenses; and the relative amount of cash flow. To the extent
that financial institutions and broker/dealers charge fees in
connection with services provided in conjunction with an
investment in shares of the Fund, the performance will be
reduced for those shareholders paying those fees.
Yield
The Fund calculates its yield based upon the seven days ending
on the day of the calculation, called the "base period." This
yield is computed by: determining the net change in the value
of a hypothetical account with a balance of one share at the
beginning of the base period, with the net change excluding
capital changes but including the value of any additional
shares purchased with dividends earned from the original one
share and all dividends declared on the original and any
purchased shares; dividing the net change in the account's
value by the value of the account at the beginning of the base
period to determine the base period return; and multiplying
the base period return by 365/7.
Effective Yield
The Fund calculates its effective yield by compounding the
unannualized base period return by: adding 1 to the base
period return; raising the sum to the 365/7th power; and
subtracting 1 from the result.
Tax-Equivalency Table
A tax-equivalency table may be used in advertising and sales
literature. The interest earned by the municipal securities in
the Fund's portfolio generally remains free from federal
regular income tax,* and is often free from state and local
taxes as well. As the table below indicates, a "tax-free"
investment can be an attractive choice for investors,
particularly in times of narrow spreads between tax-free and
taxable yields.
TAXABLE YIELD EQUIVALENT FOR 1994
State of Florida
<TABLE>
FEDERAL INCOME TAX BRACKET:
<CAPTION>
Federal: 15.00% 28.00% 31.00% 36.00% 39.60%
Joint Return $1-38,000 $38,001-91,850$91,851-140,000$140,001-$250,000 OVER $250,000
Single Return$1-22,750 $22,751-55,100$55,101-140,000 $140,001-250,000 OVER $250,000
Tax-Exempt Yield Taxable Yield Equivalent
<S> <C> <C> <C> <C> <C>
2.50% 2.94% 3.47% 3.62% 3.91% 4.14%
3.00% 3.53% 4.17% 4.35% 4.69% 4.97%
3.50% 4.12% 4.86% 5.07% 5.47% 5.79%
4.00% 4.71% 5.56% 5.80% 6.25% 6.62%
4.50% 5.29% 6.25% 6.52% 7.03% 7.45%
5.00% 5.88% 6.94% 7.25% 7.81% 8.28%
5.50% 6.47% 7.64% 7.97% 8.59% 9.11%
6.00% 7.06% 8.33% 8.70% 9.38% 9.93%
6.50% 7.65% 9.03% 9.42% 10.16% 10.76%
7.00% 8.24% 9.72% 10.14% 10.94% 11.59%
7.50% 8.82% 10.42% 10.87% 11.72% 12.42%
8.00% 9.41% 11.11% 11.59% 12.50% 13.25%
</TABLE>
The chart above is for illustrative purposes only. It is not
an indicator of past or future performance of the Fund.
*Some portion of the Fund's income may be subject to the
federal alternative minimum tax and state and local taxes.
Total Return
Average annual total return is the average compounded rate of
return for a given period that would equate a $1,000 initial
investment to the ending redeemable value of that investment.
The ending redeemable value is compounded by multiplying the
number of shares owned at the end of the period by the net
asset value per share at the end of the period. The number of
shares owned at the end of the period is based on the number
of shares purchased at the beginning of the period with
$1,000, adjusted over the period by any additional shares,
assuming the monthly reinvestment of all dividends and
distributions.
Performance Comparisons
Investors may use financial publications and/or indices to
obtain a more complete view of the Fund's performance. When
comparing performance, investors should consider all relevant
factors such as the composition of any index used, prevailing
market conditions, portfolio compositions of other funds, and
methods used to value portfolio securities and compute net
asset value. The financial publications and/or indices which
the Fund uses in advertising may include:
oLipper Analytical Services, Inc. ranks funds in
various fund categories based on total return, which
assumes the reinvestment of all income dividends and
capital gains distributions, if any.
oDonoghue's Money Fund Report publishes annualized
yields of money market funds weekly. Donoghue's Money
Market Insight publication reports monthly and 12-
month-to-date investment results for the same money
funds.
oMoney, a monthly magazine, regularly ranks
money market funds in various categories
based on the latest available seven-day
effective yield.
Appendix
Standard and Poor's Corporation Municipal Bond Rating
Definitions
AAA-Debt rated AAA has the highest rating assigned by Standard
& Poor's Corporation. Capacity to pay interest and repay
principal is extremely strong.
AA-Debt rated AA has a very strong capacity to pay interest
and repay principal and differs from the higher rated issues
only in small degree.
A-Debt rated A has a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the
adverse effect of changes in circumstances and economic
conditions than debt in higher rated categories.
Moody's Investors Service, Inc. Municipal Bond Rating
Definitions
Aaa-Bonds which are rated Aaa are judged to be of the best
quality. They carry the smallest degree of investment risk and
are generally referred to as "gilt edged." Interest payments
are protected by a large or by an exceptionally stable margin
and principal is secure. While the various protective
elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally
strong position of such issues.
Aa-Bonds which are rated Aa are judged to be of high quality
by all standards. Together with the Aaa group, they comprise
what are generally known as high grade bonds. They are rated
lower than the best bonds because margins of protection may
not be as large as in Aaa securities or fluctuation of
protective elements may be of greater amplitude or there may
be other elements present which make the long-term risks
appear somewhat larger than in Aaa securities.
A-Bonds which are rated A possess many favorable investment
attributes and are to be considered as upper medium grade
obligations. Factors giving security to principal and interest
are considered adequate but elements may be present which
suggest a susceptibility to impairment sometime in the future.
Fitch Investors Service, Inc. Long-Term Debt Rating
Definitions
AAA-Bonds considered to be investment grade and of the highest
credit quality. The obligor has an exceptionally strong
ability to pay interest and repay principal, which is unlikely
to be affected by reasonably foreseeable events.
AA-Bonds considered to be investment grade and of very high
credit quality. The obligor's ability to pay interest and
repay principal is very strong, although not quite as strong
as bonds rated AAA. Because bonds rated in the AAA and AA
categories are not significantly vulnerable to foreseeable
future developments, short-term debt of these issuers is
generally rated F-1+.
A-Bonds considered to be investment grade and of high credit
quality. The obligor's ability to pay interest and repay
principal is considered strong, but may be more vulnerable to
adverse changes in economic conditions and circumstances than
bonds with higher ratings.
Standard and Poor's Municipal Note Ratings
SP-1-Very strong or strong capacity to pay principal and
interest. Those issues determined to possess overwhelming
safety characteristics will be given a plus (+) designation.
SP-2-Satisfactory capacity to pay principal and interest.
Moody's Investors Service, Inc., Short-Term Loan Ratings
MIG1/VMIG1-This designation denotes best quality. There is a
present strong protection by established cash flows superior
liquidity support or demonstrated broadbased access to the
market for refinancing.
MIG2/VMIG2-This designation denotes high quality. Margins of
protection are ample although not so large as in the preceding
group.
Standard & Poor's Corporation Commercial Paper Rating
Definitions
A-1 -- This highest category indicates that the degree of
safety regarding timely payment is strong. Those issues
determined to possess extremely strong safety characteristics
are denoted with a plus sign (+) designation.
A-2 -- Capacity for timely payment on issues with this
designation is satisfactory. However, the relative degree of
safety is not as high as for issues designated A-1.
Moody's Investors Service, Inc. Commercial Paper Rating
Definitions
Prime-1 - Issuers rated Prime-1 (or related supporting
institutions) have a superior capacity for repayment of short-
term promissory obligations. Prime-1 repayment capacity will
normally be evidenced by the following characteristics:
- Leading market positions in well established industries.
- High rates of return on funds employed.
- Conservative capitalization structure with moderate
reliance on debt and ample asset protection.
- Broad margins in earning coverage of fixed financial
charges and high internal cash generation.
- Well-established access to a range of financial markets
and assured sources of alternate liquidity
Prime-2 - Issuers rated Prime-2 (or related supporting
institutions) have a strong capacity for repayment of short-
term promissory obligations. This will normally be evidenced
by many of the characteristics cited above, but to a lesser
degree. Earnings trends and coverage ratios, while sound, will
be more subject to variation. Capitalization characteristics,
while still appropriate, may be more affected by external
conditions. Ample alternate liquidity is maintained.
Fitch Investors Service, Inc. Short-Term Debt Rating
Definitions
F-1+ - Exceptionally Strong Credit Quality. Issues assigned
this rating are regarded as having the strongest degree of
assurance for timely payment.
F-1 - Very Strong Credit Quality. Issues assigned this rating
reflect an assurance for timely payment only slightly less in
degree than issues rated "F-1+."
F-2 - Good Credit Quality. Issues carrying this rating have a
satisfactory degree of assurance for timely payment, but the
margin of safety is not as great as for issues assigned "F-
1+" and "F-1" ratings.
PART C. OTHER INFORMATION.
Item 24. Financial Statements and Exhibits:
(a) Financial Statements (To be filed by
Amendment)
(b) Exhibits:
(1) Copy of Declaration of Trust of the Registrant
(1);
(i) Copy of the Declaration of
Trust, as amended (7);
(ii) Copy of Amendment No. 10, dated
November 18,
1992, to the Declaration of Trust (12);
(iii) Conformed copy of Amendment No. 12,
dated November 22, 1993, to the
Declaration of
Trust (17);
(IV) Conformed copy of Amendment No. 13,
dated February 24, 1994, to the
Declaration of
Trust (17);
(2) Copy of By-Laws of the Registrant (7);
(3) Not applicable;
(4) (i) Copy of Specimen Certificates for Shares
of Beneficial Interest of Alabama Municipal
Cash Trust, Minnesota Municipal Cash Trust
(Cash Series Shares and Institutional Shares),
Pennsylvania Municipal Cash Trust (Cash Series
Shares and Institutional Service Shares),
Virginia Municipal Cash Trust (Institutional
Service Shares and Institutional Shares),
North Carolina Municipal Cash Trust, Ohio
Municipal Cash Trust (Cash II Shares and
Institutional Shares), Massachusetts Municipal
Cash Trust (Institutional Service Shares and
BayFunds Shares), and New Jersey Municipal
Cash Trust (Institutional Shares and
Institutional Service Shares) (16);
(ii) Copy of Specimen Certificate for Maryland
Municipal Cash Trust; (17); (iii) Copy of
Specimen Certificate for Florida Municipal
Cash Trust; (To be filed by Amendment).
+ All exhibits have been filed electronically.
1. Response is incorporated by reference to Registrant's
Initial Registration Statement on Form N-1A filed on September
29, 1989 (File Nos. 33-31259 and 811-5911).
7. Response is incorporated by reference to Registrant's
Post-Effective Amendment No. 6 on Form N-1A filed on November
6, 1990 (File Nos. 33-31259 and 811-5911).
12. Response is incorporated by reference to Registrant's
Post-Effective Amendment No. 14 on Form N-1A filed on December
23, 1992 (File Nos. 33-31251 and 811-5911).
16. Response is incorporated by reference to Registrant's
Post-Effective Amendment No. 21 on Form N-1A filed on December
29, 1993 (File Nos. 33-31251 and 811-5911).
17. Response is incorporated by reference to Registrant's
Post-Effective Amendment No. 22 on Form N-1A filed on March 2,
1994 (File Nos. 33-31251 and 811-5911).
(5) Copy of Investment Advisory Contract of the
Registrant (7);
(i) Conformed copy of Exhibit G to Investment
Advisory Contract for Virginia Municipal Cash
Trust (18);
(ii) Conformed copy of Exhibit H to Investment
Advisory Contract for Alabama Municipal Cash
Trust (19);
(iii) Conformed copy of Exhibit I to
Investment Advisory Contract for North
Carolina Municipal Cash Trust (19);
(iv) Conformed copy of Exhibit J to Investment
Advisory Contract for Maryland Municipal Cash
Trust (18);
(v) Conformed copy of Exhibit K to Investment
Advisory Contract for New York Municipal Cash
Trust (to be filed by Amendment)
(vi) Conformed copy of Exhibit L to Investment
Advisory Contract for California Municipal
Cash Trust (to be filed by Amendment);
(vii) Form of Exhibit M to Investment Advisory
Contract for Florida Municipal Cash Trust (to
be filed by Amendment);
(6) Copy of Distributor's Contract of the
Registrant (5);
(i)Exhibit M to Distributor's Contract (13);
(ii) Conformed copy of Exhibit N to the
Distributor's Contract for Virginia Municipal
Cash Trust (19);
(iii) Conformed copy of Exhibit O to the
Distributor's Contract for Alabama Municipal
Cash Trust (19);
(iv) Conformed copy of Exhibit P to the
Distributor's Contract for North Carolina
Municipal Cash Trust (19);
(v) Conformed copy of Exhibit Q to the
Distributor's Contract for Maryland Municipal
Cash Trust; (19)
+ All exhibits have been filed electronically.
5. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 3 on Form N-1A filed August 3, 1990
(File Nos. 33-31259 and 811-5911).
7. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 6 on Form N-1A filed on November 6,
1990 (File Nos. 33-31259 and 811-5911).
13. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 15 on Form N-1A filed on
December 24, 1992 (File Nos. 33-31251 and 811-5911).
15. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 18 on Form N-1A filed on October 1,
1993 (File Nos. 33-31259 and 811-5911).
17. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 22 on Form N-1A filed on March 2,
1994 (File Nos. 33-31251 and 811-5911).
18. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 26 on Form N-1A filed on June 1, 1994
(File Nos. 33-31259 and 811-5911).
19. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 28 on Form N-1A filed on June 28,
1994 (File Nos. 33-31259 and 811-5911).
(vi) Conformed copy of Exhibit R to the
Distributor's Contract for New York Municipal
Cash Trust, Cash II Shares (to be filed by
Amendment);
(vii) Conformed copy of Exhibit S to the
Distributor's Contract for New York Municipal
Cash Trust, Institutional Service Shares (to
be filed by Amendment);
(viii) Conformed copy of Exhibit T to the
Distributor's Contract for California
Municipal Cash Trust (to be filed by
Amendment)
(ix) Form of Exhibit U to the Distributor's
Contract for Florida Municipal Cash Trust (to
be filed by Amendment);
(7) Not applicable;
(8) (i) Conformed copy of Custodian Agreement of
the Registrant; (17)
(ii)Conformed copy of Transfer Agency
Agreement(17);
(9) (i) Conformed copy of Agency Agreement
of the Registrant (15);
(ii) Conformed copy of Sub-Transfer Agency
Agreement of the Registrant
(Massachusetts Municipal Cash Trust--
BayFunds Shares only)(15);
(iii) Conformed copy of Shareholder Services
Agreement of the Registrant
(Massachusetts Municipal Cash Trust--
BayFunds Shares only) (15);
(iv) Conformed copy of Shareholder
Services Agreement of the Registrant (to
be filed by Amendment);
(v) Copy of Exhibit A to Shareholder Services
Agreement for Virginia Municipal Cash
Trust;(17)
(vii) Copy of Exhibit B to
Shareholder Services Agreement for
Maryland Municipal Cash Trust;(17)
(viii) Conformed copy of Shareholder Services
Plan of the Registrant (18);
(ix) Conformed copy of Exhibit A to
Shareholder Services Plan for Virginia
Municipal Cash Trust-Institutional
Service Shares (19);
(x) Conformed copy of Exhibit B to
Shareholder Services Plan for Maryland
Municipal Cash Trust (18);
(xi) Form of Exhibit C to Shareholder
Services Plan for Florida Municipal Cash
Trust (to be filed by Amendment);
+ All exhibits have been filed electronically.
2. Response is incorporated by reference to Registrant's Pre-
Effective Amendment No. 1 on Form N-1A filed on October 31,
1989 (File Nos. 33-31259 and 811-5911).
5. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 3 on Form N-1A filed August 3, 1990
(File Nos. 33-31259 and 811-5911).
7. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 6 on Form N-1A filed on November 6,
1990 (File Nos. 33-31259 and 811-5911).
18. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 26 on Form N-1A filed on June 1, 1994
(File Nos. 33-31259 and 811-5911).
(10) (i) Copy of Opinion and Consent of
Counsel as to the legality of shares
for Minnesota Municipal Cash Trust
(5);
(ii) Copy of Opinion and Consent of Counsel as
to the legality of shares for New Jersey
Municipal Cash Trust (7);
(11) Conformed copy of Consent of Independent
Accountants (19);
(12) Not applicable;
(13) Copy of Initial Capital Understanding (2);
(14) Not applicable.
(15) (i)Copy of Rule 12b-1 Plan of the
Registrant (7);
(1) Form of Exhibit H to 12b-1 Plan
for New York Municipal Cash Trust,
Cash II Shares (19);
(2) Form of Exhibit I to 12b-1 Plan
for New York Municipal Cash Trust,
Institutional Service Shares (19);
(ii) Copy of Rule 12b-1 Agreement
of the Registrant (7); Additional
Exhibits to the Rule 12b-1 Plan and
Agreement have been executed to reflect
the coverage of subsequently created
portfolios and/or classes under these
documents. Because these exhibits are
substantially identical but differ only
as to the Fund name, dates, and any other
Fund - specific information, pursuant to
Rule 8b-31 of the Investment Company Act
they need not be filed.
(16) Schedules for Computation of Performance
Data;
(i) New Jersey Municipal Cash
Trust (9);
(ii) Ohio Municipal Cash Trust
(10);
(iii) Virginia Municipal Cash Trust
(Institutional Share and Institutional
Service Shares) (16);
(iv) Alabama Municipal Cash Trust (18);
(v) North Carolina Municipal Cash Trust (18);
(17) Conformed copy of Power of Attorney(16);
(18) Not applicable
+ All exhibits have been filed electronically.
9. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 10 on Form N-1A filed on June 7, 1991
(File Nos. 33-31259 and 811-5911).
10. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 11 on Form N-1A filed on June 28,
1991 (File Nos. 33-31259 and 811-5911).
16. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 21 on Form N-1A filed on December 29,
1993 (File Nos. 33-31251 and 811-5911).
18. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 26 on Form N-1A filed on June 1, 1994
(File Nos. 33-31259 and 811-5911).
19. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 28 on Form N-1A filed on June 28,
1994 (File Nos. 33-31259 and 811-5911).
Item 25. Persons Controlled by or Under Common Control with
Registrant:
None
Item 26. Number of Holders of Securities:
Number of Record Holders
Title of Class as of July 1, 1994_______
Shares of beneficial
interest (no par value)
Alabama Municipal Cash Trust 107
California Municipal Cash Trust 0
Connecticut Municipal Cash Trust
Institutional Service Shares 903
Maryland Municipal Cash Trust(as of 5/27/94) 30
Massachusetts Municipal Cash Trust
Institutional Service Shares 232
BayFunds Shares 3
Minnesota Municipal Cash Trust
Cash Series Shares 2,076
Institutional Shares 40
New Jersey Municipal Cash Trust
Institutional Service Shares 119
Institutional Shares 26
New York Municipal Cash Trust 0
North Carolina Municipal Cash Trust 182
Ohio Municipal Cash Trust
Cash II Shares 135
Institutional Shares 52
Pennsylvania Municipal Cash Trust
Cash Series Shares 387
Institutional Service Shares 295
Virginia Municipal Cash Trust
Institutional Shares 25
Institutional Service Shares 354
Item 27. Indemnification: (3.)
Item 28. Business and Other Connections of Investment Adviser:
For a description of the other business of the
investment adviser, see the section entitled "Federated
Municipal Trust Information - Management of the Trust"
in Part A. The affiliations with the Registrant of four
of the Trustees and one of the Officers of the
investment adviser are included in Part B of this
Registration Statement under "Federated Municipal Trust
Management - Officers and Trustees." The remaining
Trustee of the investment adviser, his position with the
investment adviser, and, in parentheses, his principal
occupation is: Mark D. Olson (Partner, Wilson, Halbrook
& Bayard), 107 W. Market Street, Georgetown, Delaware
19947.
3. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 1 on Form N-1A filed on March 22,
1990 (File Nos. 33-31259 and 811-5911).
The remaining Officers of the investment adviser are:
William D. Dawson, J. Thomas Madden, Mark L. Mallon,
Executive Vice President; Henry J. Gailliot, Senior Vice
President-Economist; Peter R. Anderson, Gary J.
Madich, and J. Alan Minteer, Senior Vice Presidents;
Randall A. Bauer, Jonathan C. Conley, Deborah A.
Cunningham, Mark E. Durbiano, Roger A. Early, Kathleen
M. Foody-Malus, David C. Francis, Thomas M. Franks,
Edward C. Gonzales, Jeff A. Kozemchak, Marian R.
Marinack, John W. McGonigle, Gregory M. Melvin, Susan M.
Nason, Mary Jo Ochson, Robert J. Ostrowski, Charles A.
Ritter, and Christopher H. Wiles, Vice Presidents;
Edward C. Gonzales, Treasurer; and John W. McGonigle,
Secretary. The business address of each of the Officers
of the investment adviser is Federated Investors Tower,
Pittsburgh, Pennsylvania 15222-3779. These individuals
are also officers of a majority of the investment
advisers to the Funds listed in Part B of this
Registration Statement under "The Funds."
Item 29. Principal Underwriters:
(a) Federated Securities Corp., the Distributor
for shares of the Registrant, also acts as principal
underwriter for the following open-end investment
companies: Alexander Hamilton Funds; American
Leaders Fund, Inc.; Annuity Management Series;
Automated Cash Management Trust; Automated Government
Money Trust; BayFunds; The Biltmore Funds; The
Biltmore Municipal Funds; The Boulevard Funds;
California Municipal Cash Trust; Cambridge Series
Trust; Cash Trust Series, Inc.; Cash Trust Series II;
DG Investor Series; Edward D. Jones & Co. Daily
Passport Cash Trust; Federated ARMs Fund; Federated
Exchange Fund, Ltd.; Federated GNMA Trust; Federated
Government Trust; Federated Growth Trust; Federated
High Yield Trust; Federated Income Securities Trust;
Federated Income Trust; Federated Index Trust;
Federated Intermediate Government Trust; Federated
Master Trust; Federated Short-Intermediate
Government Trust; Federated Short-Term U.S.
Government Trust; Federated Stock Trust; Federated
Tax-Free Trust; Federated U.S. Government Bond Fund;
First Priority Funds; First Union Funds; Fixed Income
Securities, Inc.; Fortress Adjustable Rate U.S.
Government Fund, Inc.; Fortress Municipal Income
Fund, Inc.; Fortress Utility Fund, Inc.; Fountain
Square Funds; Fund for U.S. Government Securities,
Inc.; Government Income Securities, Inc.; High Yield
Cash Trust; Independence One Mutual Funds; Insight
Institutional Series, Inc.; Insurance Management
Series; Intermediate Municipal Trust; International
Series Inc.; Investment Series Funds, Inc.;
Investment Series Trust; Liberty Equity Income Fund,
Inc.; Liberty High Income Bond Fund, Inc.; Liberty
Municipal Securities Fund, Inc.; Liberty U.S.
Government Money Market Trust; Liberty Utility Fund,
Inc.; Liquid Cash Trust; Managed Series Trust; Mark
Twain Funds; Marshall Funds, Inc.; Money Market
Management, Inc.; Money Market Obligations Trust;
Money Market Trust; The Monitor Funds; Municipal
Securities Income Trust; New York Municipal Cash
Trust; 111 Corcoran Funds; Peachtree Funds; The
Planters Funds; Portage Funds; RIMCO Monument Funds;
The Shawmut Funds; Short-Term Municipal Trust; Signet
Select Funds; SouthTrust Vulcan Funds; Star Funds;
The Starburst Funds; The Starburst Funds II; Stock
and Bond Fund, Inc.; Sunburst Funds; Targeted
Duration Trust; Tax-Free Instruments Trust; Tower
Mutual Funds; Trademark Funds; Trust for Financial
Institutions; Trust for Government Cash Reserves;
Trust for Short-Term U.S. Government Securities; Trust for U.S.
Treasury Obligations; Vision Fiduciary Funds, Inc.;
Vision Group of Funds, Inc.; and World Investment
Series, Inc.
Federated Securities Corp. also acts as principal
underwriter for the following closed-end investment
company: Liberty Term Trust, Inc.- 1999.
(b)
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address With Underwriter With Registrant
Richard B. Fisher Director, Chairman, Chief Vice President
Federated Investors Tower Executive Officer, Chief
Pittsburgh, PA 15222-3779 Operating Officer, and
Asst. Treasurer, Federated
Securities Corp.
Edward C. Gonzales Director, Executive Vice Vice President and
Federated Investors Tower President, and Treasurer, Treasurer
Pittsburgh, PA 15222-3779 Federated Securities
Corp.
John W. McGonigle Director, Executive Vice Vice President and
Federated Investors Tower President, and Assistant Secretary
Pittsburgh, PA 15222-3779 Secretary, Federated
Securities Corp.
John B. Fisher President-Institutional Sales, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
James F. Getz President-Broker/Dealer, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Mark R. Gensheimer Executive Vice President of --
Federated Investors Tower Bank/Trust
Pittsburgh, PA 15222-3779 Federated Securities Corp.
Mark W. Bloss Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Theodore Fadool, Jr. Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Bryant R. Fisher Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Christopher T. Fives Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
James S. Hamilton Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
James M. Heaton Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
H. Joseph Kennedy Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Keith Nixon Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Timothy C. Pillion Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
James R. Ball Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Richard W. Boyd Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Jane E. Broeren-Lambesis Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Mary J. Combs Vice President, --
Federated Investors Tower Federated
Securities Corp.
Pittsburgh, PA 15222-3779
R. Edmond Connell, Jr. Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Laura M. Deger Vice President, --
Federated Investors Tower Federated
Securities Corp.
Pittsburgh, PA 15222-3779
Jill Ehrenfeld Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Mark D. Fisher Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Joseph D. Gibbons Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
David C. Glabicki Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Richard C. Gonzales Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Scott A. Hutton Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
William J. Kerns Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
William E. Kugler Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Dennis M. Laffey Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Francis J. Matten, Jr. Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Mark J. Miehl Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
J. Michael Miller Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
R. Jeffrey Niss Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Michael P. O'Brien Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Solon A. Person, IV Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Robert F. Phillips Vice President, --
Federated Investors Tower Federated
Securities Corp.
Pittsburgh, PA 15222-3779
Eugene B. Reed Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Paul V. Riordan Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Charles A. Robison Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
David W. Spears Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Jeffrey A. Stewart Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Thomas E. Territ Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
William C. Tustin Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Richard B. Watts Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Philip C. Hetzel Assistant Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Ernest L. Linane Assistant Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
S. Elliott Cohan Secretary, Federated Assistant
Federated Investors Tower Securities Corp. Secretary
Pittsburgh, PA 15222-3779
(c) Not applicable.
Item 30. Location of Accounts and Records:
Federated Municipal Trust Federated Investors Tower
Pittsburgh, PA 15222-3779
Federated Services Company
Transfer Agent, Dividend
Disbursing Agent and Federated Investors Tower
Shareholder Servicing Agent Pittsburgh, PA 15222-3779
Federated Administrative Services Federated Investors Tower
Administrator Pittsburgh, PA 15222-3779
Federated Management Federated Investors Tower
Adviser Pittsburgh, PA 15222-3779
State Street Bank and P.O. Box 8602
Trust Company Boston, MA 02266-8602
Item 31. Management Services: Not applicable.
Item 32. Undertakings:
Registrant hereby undertakes to comply with the
provisions of Section 16(c) of the 1940 Act with respect
to the removal of Trustees and the calling of special
shareholder meetings by shareholders.
Registrant hereby undertakes to file a post-effective
amendment on behalf of Florida Municipal Cash Trust, a
portfolio of Federated Municipal Trust, using financial
statements for Florida Municipal Cash Trust, which need
not be certified, within four to six months from the
date of this Post-Effective Amendment No. 29.
Registrant hereby undertakes to furnish each person to
whom a prospectus is delivered with a copy of
Reigstrant's latest annual report to shareholders, upon
request and without charge.
3. Response is incorporated by reference to Registrant's Post-
Effective Amendment No. 1 on Form N-1A filed on March 22,
1990 (File Nos. 33-31259 and 811-5911).
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933
and the Investment Company Act of 1940, the Registrant,
FEDERATED MUNICIPAL TRUST, certifies that it meets all of the
requirements for effectiveness of this Amendment to its
Registration Statement pursuant to Rule 485(b) under the
Securities Act of 1933 and has duly caused this Amendment to
its Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, all in the City of
Pittsburgh and Commonwealth of Pennsylvania, on the 21st day
of July, 1994.
FEDERATED MUNICIPAL TRUST
BY: /s/G. Andrew Bonnewell
G. Andrew Bonnewell, Assistant Secretary
Attorney in Fact for John F. Donahue
July 21, 1994
Pursuant to the requirements of the Securities Act of 1933,
this Amendment to its Registration Statement has been signed
below by the following person in the capacity and on the date
indicated:
NAME TITLE
DATE
By: /s/G. Andrew Bonnewell
G. Andrew Bonnewell Attorney In Fact July 21,
1994
ASSISTANT SECRETARY For the Persons
Listed Below
NAME TITLE
John F. Donahue* Chairman and Trustee
(Chief Executive Officer)
Glen R. Johnson* President and Trustee
Edward C. Gonzales* Vice President and Treasurer
(Principal Financial and
Accounting Officer)
John T. Conroy, Jr.* Trustee
William J. Copeland* Trustee
James E. Dowd* Trustee
Lawrence D. Ellis, M.D.* Trustee
Edward L. Flaherty, Jr.* Trustee
Peter E. Madden* Trustee
Gregor F. Meyer* Trustee
Wesley W. Posvar* Trustee
Marjorie P. Smuts* Trustee
* By Power of Attorney
