MONEY MARKET OBLIGATIONS TRUST /NEW/, 497, 1994-11-29

MONEY MARKET OBLIGATIONS TRUST /NEW/
497, 1994-11-29

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GOVERNMENT OBLIGATIONS FUND
(A PORTFOLIO OF MONEY MARKET OBLIGATIONS TRUST)
INSTITUTIONAL SERVICE SHARES
PROSPECTUS

The Institutional Service Shares of Government Obligations Fund (the
"Fund") offered by this prospectus represent interests in a
diversified portfolio of Money Market Obligations Trust (the "Trust"),
an open-end management investment company (a mutual fund). The Fund
invests in U.S. government securities to provide current income
consistent with stability of principal.

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
November 30, 1994, 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 November 30, 1994

TABLE OF CONTENTS
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<TABLE>
<S> <C>
SUMMARY OF FUND EXPENSES 1
- ---------------------------------------------------
GENERAL INFORMATION 2
- ---------------------------------------------------
INVESTMENT INFORMATION 2
- ---------------------------------------------------
Investment Objective 2
Investment Policies 2
Investment Limitations 4
Regulatory Compliance 4
TRUST INFORMATION 4
- ---------------------------------------------------
Management of the Trust 4
Distribution of Shares 5
Administration of the Fund 5
Expenses of the Fund and Institutional
Service Shares 6
NET ASSET VALUE 7
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INVESTING IN THE FUND 7
- ---------------------------------------------------
Share Purchases 7
Minimum Investment Required 8
Subaccounting Services 8
Certificates and Confirmations 8
Dividends 8
Capital Gains 8
REDEEMING SHARES 8
- ---------------------------------------------------
By Mail 9
Telephone Redemption 9
Accounts with Low Balances 10
SHAREHOLDER INFORMATION 10
- ---------------------------------------------------
Voting Rights 10
Massachusetts Partnership Law 10
TAX INFORMATION 11
- ---------------------------------------------------
Federal Income Tax 11
Pennsylvania Corporate and Personal
Property Taxes 11
PERFORMANCE INFORMATION 11
- ---------------------------------------------------
OTHER CLASSES OF SHARES 12
- ---------------------------------------------------
FINANCIAL HIGHLIGHTS--INSTITUTIONAL
SHARES 13
- ---------------------------------------------------
ADDRESSES 14
- ---------------------------------------------------
</TABLE>

SUMMARY OF FUND EXPENSES
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<TABLE>
<CAPTION>
INSTITUTIONAL SERVICE SHARES
SHAREHOLDER TRANSACTION EXPENSES
<S> <C> <C>
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 INSTITUTIONAL SERVICE SHARES OPERATING EXPENSES
(As a percentage of average net assets)
<S> <C> <C>
Management Fee (after waiver) (1)................................................................. 0.07%
12b-1 Fee......................................................................................... None
Total Other Expenses.............................................................................. 0.38%
Shareholder Services Fee............................................................. 0.25%
Total Institutional Service Shares Operating Expenses (2)................................. 0.45%
<FN>
(1) The management fee has been reduced to reflect the voluntary waiver of a
portion of the management fee. The adviser can terminate this voluntary
waiver at any time at its sole discretion. The maximum management fee is
0.20%.
(2) The Total Institutional Service Shares Operating Expenses in the table
above are based on expenses expected during the fiscal year ending July 31,
1995. The Total Institutional Service Shares Operating Expenses were 0.00%
for the period ended July 31, 1994.
</TABLE>

The purpose of this table is to assist an investor in understanding the
various costs and expenses that a shareholder of Institutional Service Shares 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
"Trust Information." Wire-transferred redemptions of less than $5,000 may be
subject to additional fees.

<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS
- ------------------------------------------------------------------------------------- --------- ---------
<S> <C> <C>
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 $14
</TABLE>

THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

The information set forth in the foregoing table and example relates only to
Institutional Service Shares of the Fund. The Fund also offers another class of
shares called Institutional Shares. Institutional Service Shares and
Institutional Shares are subject to certain of the same expenses. See "Other
Classes of Shares."

GENERAL INFORMATION
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The Trust was established as a Massachusetts business trust under a Declaration
of Trust dated October 3, 1988. The Declaration of Trust permits the Trust to
offer separate series of shares of beneficial interest representing interests in
separate portfolios of securities. The shares in any one portfolio may be
offered in separate classes. With respect to this Fund, as of the date of this
prospectus, the Trustees have established two classes of shares known as
Institutional Service Shares and Institutional Shares. This prospectus relates
only to Institutional Service Shares of the Fund, which are designed primarily
for financial institutions as a convenient means of accumulating an interest in
a professionally managed, diversified portfolio investing only in short-term
U.S. government securities. A minimum initial investment of $25,000 is required.

Eligibility for investment in the Fund is contingent upon an investor
accumulating and maintaining a minimum aggregate investment of $200,000,000 in
Federated funds within a twelve-month period. For this purpose, (1) an investor
is defined as a financial institution or its collective customers, including
affiliate financial institutions and their collective customers, or other
institutions that are determined to qualify by Federated Securities Corp., and
(2) Federated funds are those mutual funds which are distributed by Federated
Securities Corp. or are advised by or administered by investment advisers or
administrators affiliated with Federated Securities Corp. ("Federated Funds").
An investor's minimum investment will be calculated by combining all accounts
the investor maintains with the Federated Funds, which includes the Trust.

The Fund attempts to stabilize the value of a share at $1.00. Shares are
currently sold and redeemed at that price.

INVESTMENT INFORMATION
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INVESTMENT OBJECTIVE

The investment objective of the Fund is to provide current income consistent
with stability of principal. 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 only in a portfolio of
U.S. government securities maturing in 13 months or less. 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 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 only in U.S. government securities.
These instruments are either issued or guaranteed by the U.S. government, its
agencies, or instrumentalities. These securities include, but are not limited
to:

- direct obligations of the U.S. Treasury, such as U.S. Treasury bills,
notes, and bonds; and

- notes, bonds, and discount notes of U.S. government agencies or
instrumentalities, such as Central Bank for Cooperatives, Farm Credit
System, Farmers Home Administration, Federal Farm Credit Banks, Federal
Farm Credit System, Federal Home Loan Banks, Federal Home Loan Mortgage
Corporation, Federal Intermediate Credit Banks, Federal Land Banks,
Federal National Mortgage Association, Government National Mortgage
Association, and Student Loan Marketing Association.

Some obligations issued or guaranteed by agencies or instrumentalities of the
U.S. government, such as Government National Mortgage Association participation
certificates, are backed by the full faith and credit of the U.S. Treasury. No
assurances can be given that the U.S. government will provide financial support
to other agencies or instrumentalities, since it is not obligated to do so.
These instrumentalities are supported by:

- the issuer's right to borrow an amount limited to a specific line of
credit from the U.S. Treasury;

- discretionary authority of the U.S. government to purchase certain
obligations of an agency or instrumentality; or

- the credit of the agency or instrumentality.

REPURCHASE AGREEMENTS. Certain securities in which the Fund invests may be
purchased pursuant to repurchase agreements. Repurchase agreements are
arrangements in which banks, broker/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.

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. 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.
Accordingly, the Fund may pay more/less than the market value of the securities
on the settlement date.

The Fund may dispose of a commitment prior to settlement if the adviser deems it
appropriate to do so. In addition, the Fund may enter into transactions to sell
its purchase commitments to third parties at current market values and
simultaneously acquire other commitments to purchase similar securities at later
dates. The Fund may realize short-term profits or losses upon the sale of such
commitments.

LENDING OF PORTFOLIO SECURITIES. In order to generate additional income, the
Fund may lend its portfolio securities on a short-term or long-term basis, or
both, to broker/dealers, banks, or other institutional borrowers of securities.
The Fund will only enter into loan arrangements with broker/ dealers, banks, or
other institutions which the adviser has determined are creditworthy under
guidelines established by the Trustees and will receive collateral at all times
equal to at least 100% of the value of the securities loaned.

INVESTMENT LIMITATIONS

The Fund will not borrow money directly or through reverse repurchase agreements
(arrangements in which the Fund sells a money market instrument for a percentage
of its cash value with an agreement to buy it back on a set date) or pledge
securities except, under certain circumstances, the Fund may borrow up to
one-third of the value of its total assets and pledge up to 15% of the value of
its total assets to secure such borrowings.

The above investment limitation cannot be changed without shareholder approval.
The following limitation, however, may be changed by the Trustees without
shareholder approval. Shareholders will be notified before any material change
in this limitation becomes effective.

The Fund will not invest more than 10% of its net assets in illiquid securities,
including repurchase agreements providing for settlement in more than seven days
after notice.

REGULATORY COMPLIANCE

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 .20 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.

DISTRIBUTION OF SHARES

Federated Securities Corp. is the principal distributor for Institutional
Service 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.

SHAREHOLDER SERVICES PLAN. The Fund has adopted a Shareholder Services Plan
(the "Services Plan") under which it may pay Federated Shareholder Services, an
affiliate of Federated Investors, an amount not exceeding .25 of 1% of the
average daily net asset value of the Institutional Service Shares to provide
personal services and/or maintenance of shareholder accounts to the Fund and its
shareholders. From time to time and for such periods as deemed appropriate, the
amount stated above may be reduced voluntarily.

Federated Shareholder Services may elect to pay financial institutions fees
based upon shares owned by their clients or customers for services provided to
those clients and customers. The schedules of such fees and the basis upon which
such fees will be paid will be determined from time to time by Federated
Shareholder Services.

ADMINISTRATION OF THE FUND

ADMINISTRATIVE SERVICES. Federated Administrative Services, a subsidiary of
Federated Investors, provides 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:

<TABLE>
<CAPTION>
MAXIMUM FEE AVERAGE AGGREGATE DAILY NET ASSETS
-------------------- ------------------------------------
<C> <S>
.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
</TABLE>

The administrative fee received during any fiscal year shall be at least
$125,000 per portfolio and $30,000 per each additional class of shares. Average
aggregate daily net assets include those of all mutual funds advised by
affiliates of Federated Investors. Federated Administrative Services may choose
voluntarily to waive a portion of its fee.

CUSTODIAN. State Street Bank and Trust Company, 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 & Donnelly,
Pittsburgh, PA, and Dickstein, Shapiro & Morin, L.L.P., Washington, DC.

INDEPENDENT PUBLIC ACCOUNTANTS. The independent public accountants for the Fund
are Arthur Andersen LLP, Pittsburgh, PA.

EXPENSES OF THE FUND AND INSTITUTIONAL SERVICE SHARES

Holders of Institutional Service Shares pay their allocable portion of Fund and
Trust expenses.

The Trust expenses for which holders of Institutional Service Shares pay their
allocable portion include, but are not limited to: the cost of organizing the
Trust and continuing its existence; registering the Trust with federal and state
securities authorities; Trustees' fees; auditors' fees; the cost of meetings of
Trustees; legal fees of the Trust; association membership dues; and such
non-recurring and extraordinary items as may arise.

The Fund expenses for which holders of Institutional Service Shares pay their
allocable portion include, but are not limited to: registering the Fund and
shares of the Fund; investment advisory services; taxes and commissions;
custodian fees; insurance premiums; auditors' fees; and such non-recurring and
extraordinary items as may arise.

Exchange Commission and registration fees paid to state securities commissions;
expenses related to administrative personnel and services as required to support
holders of Institutional Service Shares; legal fees relating solely to
Institutional Service Shares; and Trustees' fees incurred as a result of issues
relating solely to Institutional Service Shares.

NET ASSET VALUE
- --------------------------------------------------------------------------------

The Fund attempts to stabilize the net asset value of shares at $1.00 by valuing
the portfolio securities using the amortized cost method. The net asset value
per share is determined by subtracting liabilities attributable to shares from
the value of Fund assets attributable to shares, 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, 3:00 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 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.

BY WIRE. To purchase by Federal Reserve wire, call the Fund before 3:00 p.m.
(Eastern time) to place an order. The order is considered received immediately.
Payment by federal funds must be received before 3:00 p.m. (Eastern time) that
day. Federal funds should be wired as follows: Federated Services Company, c/o
State Street Bank and Trust Company, Boston, Massachusetts; Attention: EDGEWIRE;
For Credit to: Government Obligations Fund--Institutional Service Shares; 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.

BY MAIL. To purchase by mail, send a check made payable to Government
Obligations Fund-- Institutional Service Shares to: Federated Services Company,
P.O. Box 8602, Boston, MA 02266-8602. Orders by mail are considered received
when payment by check is converted into federal funds. This is normally the next
business day after the check is received.

MINIMUM INVESTMENT REQUIRED

The minimum initial investment is $25,000. Eligibility for investment in the
Fund is contingent upon an investor accumulating and maintaining a minimum
aggregate investment of $200,000,000 in Federated Funds within a twelve-month
period.

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
3:00 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.

BY MAIL

Shares may be redeemed by sending a written request to: Government Obligations
Fund, P.O. Box 8602, Boston, MA 02266-8602. The written request should state:
Government Obligations Fund--Institutional Service Shares; 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:

- a trust company or commercial bank whose deposits are insured by the Bank
Insurance Fund which is administered by the Federal Deposit Insurance
Corporation ("FDIC");

- a member of the New York, American, Boston, Midwest, or Pacific Stock
Exchanges;

- a savings bank or savings and loan association whose deposits are insured
by the Savings Association Insurance Fund, which is administered by the
FDIC; or

- any 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.

TELEPHONE REDEMPTION

Shares may be redeemed by telephoning the Fund. Telephone instructions may be
recorded and if reasonable procedures are not followed by the Fund, it may be
liable for losses due to unauthorized or fraudulent telephone instructions. An
authorization form permitting the Fund to accept telephone requests must first
be completed. Authorization forms and information on this service are available
from Federated Securities Corp.

If the redemption request is received before 3:00 p.m. (Eastern time), the
proceeds will be wired the same day to the shareholder's account at a domestic
commercial bank which is a member of the Federal Reserve System, and those
shares redeemed will not be entitled to that day's dividend. A daily dividend
will be paid on shares redeemed if the redemption request is received after 3:00
p.m. (Eastern time). However, the proceeds are not wired until the following
business day. Under limited

circumstances, arrangements may be made with the distributor for same-day
payment of proceeds, without that day's dividend, for redemption requests
received before 3:00 p.m. (Eastern time).

In the event of drastic economic or market changes, a shareholder may experience
difficulty in redeeming by telephone. If such a case should occur, another
method of redemption, such as "By Mail," should be considered. If at any time
the Fund shall determine it necessary to terminate or modify this method of
redemption, shareholders would be promptly notified.

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 $25,000, or the
aggregate investment in Federated Funds falls below the required minimum of
$200,000,000 to be maintained from and after twelve months from account opening,
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.

As of October 28, 1994, The City of Birmingham Board of Education--General Fund,
Birmingham, Alabama, owned 52.71% of the voting securities of the Institutional
Service Shares, and, therefore, may, for certain purposes, be deemed to control
the class and be able to affect the outcome of certain matters presented for a
vote of shareholders.

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.

Unless otherwise exempt, shareholders are required to pay federal income tax on
any dividends and other distributions received. This applies whether dividends
and distributions are received in cash or as additional shares.

PENNSYLVANIA CORPORATE AND PERSONAL PROPERTY TAXES

In the opinion of Houston, Houston, & Donnelly, counsel to the Trust:

- the Fund is not subject to Pennsylvania corporate or personal property
taxes; and

- Fund shares may be subject to personal property taxes imposed by counties,
municipalities, and school districts in Pennsylvania to the extent that
the portfolio securities in the Fund would be subject to such taxes if
owned directly by residents of those jurisdictions.

OTHER STATE AND LOCAL TAXES. Shareholders are urged to consult their own tax
advisers regarding the status of their accounts under state and local tax laws.

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

From time to time, the Fund advertises its yield and effective yield for
Institutional Service Shares.

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.

distributions. It is calculated by dividing that change by the initial
investment and is expressed as a percentage.

Performance figures will be calculated separately for each class of shares.
Because each class of shares is subject to different expenses, the performance
of Institutional Shares will exceed the yield and effective yield of
Institutional Service Shares for the same period.

From time to time, advertisements for the Fund may refer to ratings, rankings,
and other information in certain financial publications and/or compare its
performance to certain indices.

OTHER CLASSES OF SHARES
- --------------------------------------------------------------------------------

The Fund also offers the following class.

Institutional Shares are sold at net asset value primarily to accounts for which
financial institutions act in an agency or fiduciary capacity. Investments in
Institutional Shares are subject to a minimum initial investment of $25,000.
Institutional Shares are currently accruing no shareholder services fee.

Financial institutions providing distribution or administrative services may
receive additional compensation depending upon which class of shares of the Fund
is sold. The distributor pays this compensation and is reimbursed from sources
other than the assets of the Fund.

The amount of dividends payable to shareholders of any particular class may be
more or less than that payable to the shareholders of any other class depending
upon the existence of and differences in class expenses and Services Plan
expenses. The stated advisory fee is the same for all classes of shares.

GOVERNMENT OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

The following table has been audited by Arthur Andersen LLP, the Fund's
independent accountants. Their report, dated September 15, 1994, on the Fund's
financial statements for the year ended July 31, 1994, and on the following
table for each of the periods presented, is included in the Annual Report, which
is incorporated by reference. This table should be read in conjunction with the
Fund's financial statements and notes thereto, which may be obtained free of
charge from the Fund.

<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
-----------------------------------------------------
1994 1993 1992 1991 1990*
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------
Net investment income 0.03 0.03 0.05 0.07 0.03
- ------------------------------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------------------------------
Dividends to shareholders from net investment income (0.03) (0.03) (0.05) (0.07) (0.03)
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
TOTAL RETURN** 3.41% 3.22% 4.70% 7.20% 2.80%
- ------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------
Expenses 0.20% 0.20% 0.20% 0.20% 0.20%(b)
- ------------------------------------------------------------
Net investment income 3.38% 3.16% 4.55% 6.77% 8.24%(b)
- ------------------------------------------------------------
Expense waiver/reimbursement (a) 0.15% 0.11% 0.12% 0.22% 0.34%(b)
- ------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------
Net assets, end of period (000 omitted) $763,879 $707,146 $679,533 $331,454 $148,598
- ------------------------------------------------------------
<FN>

* Reflects operations for the period from March 31, 1990 (date of initial
public investment) to
July 31, 1990.

** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(b) Computed on an annualized basis.
</TABLE>

ADDRESSES
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Government Obligations Fund
Institutional Service Shares Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Distributor
Federated Securities Corp. Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Investment Adviser
Federated Management Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Custodian
State Street Bank and Trust Company 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 & Donnelly 2510 Centre City Tower
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------

Legal Counsel
Dickstein, Shapiro & Morin, L.L.P. 2101 L Street, N.W.
Washington, DC 20037
- -------------------------------------------------------------------------------------------

Independent Public Accountants
Arthur Andersen LLP 2100 One PPG Place
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------
</TABLE>

- --------------------------------------------------------------------------------
GOVERNMENT OBLIGATIONS
FUND
INSTITUTIONAL SERVICE SHARES
PROSPECTUS

A Diversified Portfolio of
Money Market Obligations Trust,
an Open-End Management
Investment Company

Prospectus dated November 30,
1994

[LOGO] FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
60934N807
9110205A-SS (11/94) [RECYCLED PAPER SYMBOL]

- --------------------------------------------------------------------------------
GOVERNMENT OBLIGATIONS FUND
(A PORTFOLIO OF MONEY MARKET OBLIGATIONS TRUST)
INSTITUTIONAL SHARES
PROSPECTUS

The Institutional Shares of Government Obligations Fund (the "Fund")
offered by this prospectus represent interests in a diversified
portfolio of Money Market Obligations Trust (the "Trust"), an open-end
management investment company (a mutual fund). The Fund invests in
U.S. government securities to provide current income consistent with
stability of principal.

This prospectus contains the information you should read and know
before you invest in the Fund. Keep this prospectus for future
reference.

Prospectus dated November 30, 1994

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
SUMMARY OF FUND EXPENSES 1
- ---------------------------------------------------
FINANCIAL HIGHLIGHTS--INSTITUTIONAL
SHARES 2
- ---------------------------------------------------
GENERAL INFORMATION 3
- ---------------------------------------------------
INVESTMENT INFORMATION 3
- ---------------------------------------------------
Investment Objective 3
Investment Policies 3
Investment Limitations 5
Regulatory Compliance 5
TRUST INFORMATION 5
- ---------------------------------------------------
Management of the Trust 5
Distribution of Shares 6
Administration of the Fund 6
Expenses of the Fund and Institutional
Shares 7
NET ASSET VALUE 8
- ---------------------------------------------------
INVESTING IN THE FUND 8
- ---------------------------------------------------
Share Purchases 8
Minimum Investment Required 9
Subaccounting Services 9
Certificates and Confirmations 9
Dividends 9
Capital Gains 9

REDEEMING SHARES 9
- ---------------------------------------------------
By Mail 10
Telephone Redemption 10
Accounts with Low Balances 11

SHAREHOLDER INFORMATION 11
- ---------------------------------------------------
Voting Rights 11
Massachusetts Partnership Law 11

TAX INFORMATION 12
- ---------------------------------------------------
Federal Income Tax 12
Pennsylvania Corporate and Personal
Property Taxes 12

PERFORMANCE INFORMATION 12
- ---------------------------------------------------
OTHER CLASSES OF SHARES 13
- ---------------------------------------------------
ADDRESSES 14
- ---------------------------------------------------
</TABLE>

SUMMARY OF FUND EXPENSES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
SHAREHOLDER TRANSACTION EXPENSES
<S> <C> <C>
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 INSTITUTIONAL SHARES OPERATING EXPENSES
(As a percentage of average net assets)
<S> <C> <C>
Management Fee (after waiver) (1)................................................................. 0.07%
12b-1 Fee......................................................................................... None
Total Other Expenses.............................................................................. 0.13%
Shareholder Services Fee (2)......................................................... 0.00%
Total Institutional Shares Operating Expenses (3)......................................... 0.20%
<FN>
(1) The management fee has been reduced to reflect the voluntary waiver of a
portion of the management fee. The adviser can terminate this voluntary
waiver at any time at its sole discretion. The maximum management fee is
0.20%.
(2) The maximum shareholder services fee is 0.25%.
(3) The Total Institutional Shares Operating Expenses in the table above are
based on expenses expected during the fiscal year ending July 31, 1995. The
Total Institutional Shares Operating Expenses were 0.20% for the fiscal
year ended July 31, 1994, and were 0.35% absent the voluntary waiver of a
portion of the management fee.
</TABLE>

The purpose of this table is to assist an investor in understanding the
various costs and expenses that a shareholder of Institutional Shares 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 "Trust
Information." Wire-transferred redemptions of less than $5,000 may be subject to
additional fees.

<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------------------------------------------------------------- --------- --------- --------- ---------
<S> <C> <C> <C> <C>
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. $2 $6 $11 $26
</TABLE>

THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

The information set forth in the foregoing table and example relates only to
Institutional Shares of the Fund. The Fund also offers another class of shares
called Institutional Service Shares. Institutional Shares and Institutional
Service Shares are subject to certain of the same expenses. See "Other Classes
of Shares."

GOVERNMENT OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
-----------------------------------------------------
1994 1993 1992 1991 1990*
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------
Net investment income 0.03 0.03 0.05 0.07 0.03
- ------------------------------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------------------------------
Dividends to shareholders from net investment income (0.03) (0.03) (0.05) (0.07) (0.03)
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
TOTAL RETURN** 3.41% 3.22% 4.70% 7.20% 2.80%
- ------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------
Expenses 0.20% 0.20% 0.20% 0.20% 0.20%(b)
- ------------------------------------------------------------
Net investment income 3.38% 3.16% 4.55% 6.77% 8.24%(b)
- ------------------------------------------------------------
Expense waiver/reimbursement (a) 0.15% 0.11% 0.12% 0.22% 0.34%(b)
- ------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------
Net assets, end of period (000 omitted) $763,879 $707,146 $679,533 $331,454 $148,598
- ------------------------------------------------------------
<FN>

* Reflects operations for the period from March 31, 1990 (date of initial
public investment) to July 31, 1990.

** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(b) Computed on an annualized basis.
</TABLE>

GENERAL INFORMATION
- --------------------------------------------------------------------------------

The Trust was established as a Massachusetts business trust under a Declaration
of Trust dated October 3, 1988. The Declaration of Trust permits the Trust to
offer separate series of shares of beneficial interest representing interests in
separate portfolios of securities. The shares in any one portfolio may be
offered in separate classes. With respect to this Fund, as of the date of this
prospectus, the Trustees have established two classes of shares known as
Institutional Shares and Institutional Service Shares. This prospectus relates
only to Institutional Shares of the Fund, which are designed primarily for
financial institutions as a convenient means of accumulating an interest in a
professionally managed, diversified portfolio investing only in short-term U.S.
government securities. A minimum initial investment of $25,000 is required.

The Fund attempts to stabilize the value of a share at $1.00. Shares are
currently sold and redeemed at that price.

INVESTMENT INFORMATION
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

INVESTMENT POLICIES

- direct obligations of the U.S. Treasury, such as U.S. Treasury bills,
notes, and bonds; and

- the issuer's right to borrow an amount limited to a specific line of
credit from the U.S. Treasury;

- discretionary authority of the U.S. government to purchase certain
obligations of an agency or instrumentality; or

- the credit of the agency or instrumentality.

INVESTMENT LIMITATIONS

The Fund will not invest more than 10% of its net assets in illiquid securities,
including repurchase agreements providing for settlement in more than seven days
after notice.

REGULATORY COMPLIANCE

TRUST INFORMATION
- --------------------------------------------------------------------------------

MANAGEMENT OF THE TRUST

DISTRIBUTION OF SHARES

Federated Securities Corp. is the principal distributor for Institutional 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.

SHAREHOLDER SERVICES PLAN. The Fund has adopted a Shareholder Services Plan
(the "Services Plan") under which it may pay Federated Shareholder Services, an
affiliate of Federated Investors, an amount not exceeding .25 of 1% of the
average daily net asset value of the Institutional Shares to provide personal
services and/or maintenance of shareholder accounts to the Fund and its
shareholders. From time to time and for such periods as deemed appropriate, the
amount stated above may be reduced voluntarily.

ADMINISTRATION OF THE FUND

ADMINISTRATIVE SERVICES. Federated Administrative Services, a subsidiary of
Federated Investors, provides 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:

CUSTODIAN. State Street Bank and Trust Company, 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 & Donnelly,
Pittsburgh, PA, and Dickstein, Shapiro & Morin, L.L.P., Washington, DC.

INDEPENDENT PUBLIC ACCOUNTANTS. The independent public accountants for the Fund
are Arthur Andersen LLP, Pittsburgh, PA.

EXPENSES OF THE FUND AND INSTITUTIONAL SHARES

Holders of Institutional Shares pay their allocable portion of Fund and Trust
expenses.

The Trust expenses for which holders of Institutional Shares pay their allocable
portion include, but are not limited to: the cost of organizing the Trust and
continuing its existence; registering the Trust with federal and state
securities authorities; Trustees' fees; auditors' fees; the cost of meetings of
Trustees; legal fees of the Trust; association membership dues; and such
non-recurring and extraordinary items as may arise.

The Fund expenses for which holders of Institutional Shares pay their allocable
portion include, but are not limited to: registering the Fund and shares of the
Fund; investment advisory services; taxes and commissions; custodian fees;
insurance premiums; auditors' fees; and such non-recurring and extraordinary
items as may arise.

At present, no expenses are allocated to the Institutional Shares as a class.
However the Board of Trustees reserves the right to allocate certain expenses to
holders of Institutional Shares as it deems appropriate ("class expenses"). In
any case, class expenses would be limited to: transfer agent fees as identified
by the transfer agent as attributable to holders of Institutional Shares;
printing and postage expenses related to preparing and distributing materials
such as shareholder reports, prospectuses and proxies to current shareholders;
registration fees paid to the Securities and Exchange Commission and
registration fees paid to state securities commissions; expenses related to
administrative personnel

and services as required to support holders of Institutional Shares; legal fees
relating solely to Institutional Shares; and Trustees' fees incurred as a result
of issues relating solely to Institutional Shares.

NET ASSET VALUE
- --------------------------------------------------------------------------------

INVESTING IN THE FUND
- --------------------------------------------------------------------------------

SHARE PURCHASES

To make a purchase, open an account by calling Federated Securities Corp.
Information needed to establish the account will be taken by telephone.

BY WIRE. To purchase by Federal Reserve wire, call the Fund before 3:00 p.m.
(Eastern time) to place an order. The order is considered received immediately.
Payment by federal funds must be received before 3:00 p.m. (Eastern time) that
day. Federal funds should be wired as follows: Federated Services Company, c/o
State Street Bank and Trust Company, Boston, Massachusetts; Attention: EDGEWIRE;
For Credit to: Government Obligations Fund--Institutional Shares; 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.

BY MAIL. To purchase by mail, send a check made payable to Government
Obligations Fund-- Institutional Shares to: Federated Services Company, P.O. Box
8602, Boston, MA 02266-8602. Orders by mail are considered received when payment
by check is converted into federal funds. This is normally the next business day
after the check is received.

MINIMUM INVESTMENT REQUIRED

SUBACCOUNTING SERVICES

CERTIFICATES AND CONFIRMATIONS

Monthly confirmations are sent to report transactions such as all purchases and
redemptions as well as dividends paid during the month.

DIVIDENDS

CAPITAL GAINS

REDEEMING SHARES
- --------------------------------------------------------------------------------

BY MAIL

Shares may be redeemed by sending a written request to: Government Obligations
Fund, P.O. Box 8602, Boston, MA 02266-8602. The written request should state:
Government Obligations Fund-- Institutional Shares; 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.

- a trust company or commercial bank whose deposits are insured by the Bank
Insurance Fund which is administered by the Federal Deposit Insurance
Corporation ("FDIC");

- a member of the New York, American, Boston, Midwest, or Pacific Stock
Exchanges;

- a savings bank or savings and loan association whose deposits are insured
by the Savings Association Insurance Fund, which is administered by the
FDIC; or

- any other "eligible guarantor institution," as defined in the Securities
Exchange Act of 1934.

The Fund does not accept signatures guaranteed by a notary public.

TELEPHONE REDEMPTION

circumstances, arrangements may be made with the distributor for same-day
payment of proceeds, without that day's dividend, for redemption requests
received before 3:00 p.m. (Eastern time).

ACCOUNTS WITH LOW BALANCES

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

MASSACHUSETTS PARTNERSHIP LAW

TAX INFORMATION
- --------------------------------------------------------------------------------

FEDERAL INCOME TAX

PENNSYLVANIA CORPORATE AND PERSONAL PROPERTY TAXES

In the opinion of Houston, Houston, & Donnelly, counsel to the Trust:

- the Fund is not subject to Pennsylvania corporate or personal property
taxes; and

OTHER STATE AND LOCAL TAXES. Shareholders are urged to consult their own tax
advisers regarding the status of their accounts under state and local tax laws.

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

From time to time, the Fund advertises its yield and effective yield for
Institutional Shares.

distributions. It is calculated by dividing that change by the initial
investment and is expressed as a percentage.

From time to time, advertisements for the Fund may refer to ratings, rankings,
and other information in certain financial publications and/or compare its
performance to certain indices.

OTHER CLASSES OF SHARES
- --------------------------------------------------------------------------------

The Fund also offers the following class.

Institutional Service Shares are sold at net asset value primarily to accounts
for which financial institutions act in an agency or fiduciary capacity.
Investments in Institutional Service Shares are subject to a minimum initial
investment of $25,000. Institutional Service Shares are currently subject to the
maximum shareholder services fee of 0.25%.

ADDRESSES
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Government Obligations Fund
Institutional Shares Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Distributor
Federated Securities Corp. Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Investment Adviser
Federated Management Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Custodian
State Street Bank and Trust Company P.O. Box 8602
Boston, MA 02266-8602
- -------------------------------------------------------------------------------------------

Legal Counsel
Houston, Houston & Donnelly 2510 Centre City Tower
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------

Legal Counsel
Dickstein, Shapiro & Morin, L.L.P. 2101 L Street, N.W.
Washington, DC 20037
- -------------------------------------------------------------------------------------------

Independent Public Accountants
Arthur Andersen LLP 2100 One PPG Place
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------
</TABLE>

- --------------------------------------------------------------------------------
GOVERNMENT OBLIGATIONS
FUND
INSTITUTIONAL SHARES
PROSPECTUS

A Diversified Portfolio of
Money Market Obligations Trust,
an Open-End Management
Investment Company

Prospectus dated November 30,
1994

[LOGO] FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
60934N104
9110204A (11/94) [RECYCLED PAPER SYMBOL]

Government Obligations Fund

(A Portfolio of Money Market Obligations Trust)
Institutional Shares
Institutional Service Shares
Statement of Additional Information

This Statement of Additional Information should be read with
the prospectus(es) of Government Obligations Fund (the
"Fund"), a portfolio of Money Market Obligations Trust (the
"Trust") dated November 30, 1994. This Statement is not a
prospectus. To receive a copy of a prospectus, write or
call the Fund.

Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779

Statement dated November 30, 1994

Federated Securities
Corp.
Distributor
A subsidiary of Federated Investors
Investment Policies 1
Acceptable Investments 1
When-Issued and Delayed
Delivery Transactions 1
Repurchase Agreements 1
Reverse Repurchase
Agreements 1
Lending of Portfolio
Securities 1
Investment Limitations 2
Brokerage Transactions 3
Money Market Obligations Trust
Management 4
Officers and Trustees 4
The Funds 7
Fund Ownership 7
Trustee Liability 8
Investment Advisory Services 8
Investment Adviser 8
Advisory Fees 8
State Expense Limitations 8
Administrative Services 8
Custodian 9
Transfer Agent and Portfolio
Recordkeeper 9
Shareholder Services Plan 9
Determining Net Asset Value 9
Redemption in Kind 9
The Fund's Tax Status 10
Performance Information 10
Yield 10
Effective Yield 10
Total Return 10
Performance Comparisons 10
Financial Statements 11
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
Some of the short-term U.S. government securities the Fund may
purchase carry variable interest rates. These securities have a
rate of interest subject to adjustment at least annually. This
adjusted interest rate is ordinarily tied to some objective
standard, such as the 91-day U.S. Treasury bill rate. Variable
interest rates will reduce the changes in the market value of
such securities from their original purchase prices.
Accordingly, the potential for capital appreciation or capital
depreciation should not be greater than that of fixed interest
rate U.S. government securities having maturities equal to the
interest rate adjustment dates of the variable rate U.S.
government securities. The Fund may purchase variable rate U.S.
government securities upon the determination by the Board of
Trustees that the interest rate as adjusted will cause the
instrument to have a current market value that approximates its
par value on the adjustment date.
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. 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
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.
Reverse Repurchase Agreements
The Fund may also enter into reverse repurchase agreements.
These transactions are similar to borrowing cash. In a reverse
repurchase agreement, the Fund transfers possession of a
portfolio instrument in return for a percentage of the
instrument's market value in cash and agrees that on a stipulated
date in the future the Fund will repurchase the portfolio
instrument by remitting the original consideration plus interest
at an agreed upon rate. The use of reverse repurchase agreements
may enable the Fund to avoid selling portfolio instruments at a
time when a sale may be deemed to be disadvantageous, but does
not ensure this result. When effecting reverse repurchase
agreements, liquid assets of the Fund, in a dollar amount
sufficient to make payment for the obligations to be purchased,
are: segregated on the Fund's records at the trade date; marked
to market daily; and maintained until the transaction is settled.
Lending of Portfolio Securities
The collateral received when the Fund lends portfolio securities
must be valued daily and, should the market value of the loaned
securities increase, the borrower must furnish additional
collateral to the Fund. During the time portfolio securities are
on loan, the borrower pays the Fund any dividends or interest
paid on such securities. Loans are subject to termination at the
option of the Fund or the borrower. The Fund may pay reasonable
administrative and custodial fees in connection with a loan and
may pay a negotiated portion of the interest earned on the cash
or equivalent collateral to the borrower or placing broker.
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
may be 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 directly or through reverse repurchase
agreements in amounts up to one-third of the value of its total
assets, including the amounts borrowed.
The Fund will not borrow money or engage in reverse repurchase
agreements 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. During the period any reverse
repurchase agreements are outstanding, the Fund will restrict the
purchase of portfolio securities to money market instruments
maturing on or before the expiration date of the reverse
repurchase agreements, but only to the extent necessary to assure
completion of the reverse repurchase agreements.
Pledging Assets
The Fund will not mortgage, pledge, or hypothecate any assets
except to secure permitted borrowings. In those cases, it may
pledge assets having a market value not exceeding the lesser of
the dollar amounts borrowed or 15% of the value of total assets
of the Fund at the time of the pledge.
Lending Cash or Securities
The Fund will not lend any of its assets, except portfolio
securities. This shall not prevent the Fund from purchasing or
holding bonds, debentures, notes, certificates of indebtedness or
other debt securities, entering into repurchase agreements or
engaging in other transactions where 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, 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
agreements collateralized by such U.S. government securities.
Diversification of Investments
With respect to securities comprising 75% of the value of its
total assets, the Fund will not purchase securities of any one
issuer (other than cash, cash items, or securities issued or
guaranteed by the government of the United States or its agencies
or instrumentalities and repurchase agreements collateralized by
such U.S. government securities) if as a result more than 5% of
the value of its total assets would be invested in the securities
of that issuer, or if it would own more than 10% of the
outstanding voting securities of that issuer.
The above limitations cannot be changed without shareholder
approval. The following investment limitations, however, may be
changed by the 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 in securities subject to restrictions on
resale under federal securities law.
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 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 Trust
The Fund will not purchase or retain the securities of any issuer
if the Officers and Trustees of the Trust or the Fund's
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 did not borrow money or pledge securities in excess of
5% of the value of its net assets during the last fiscal year and
has no present intent to do so 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. During
the fiscal year(s) ended July 31, 1994, 1993, and 1992, the Fund
paid no brokerage commissions.
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.
Money Market Obligations Trust Management
Officers and Trustees
Officers and Trustees are listed with their addresses, principal
occupations, and present positions.

John F. Donahue@*
Federated Investors Tower
Pittsburgh, PA

Chairman and Trustee

Chairman and Trustee, Federated Investors, Federated Advisers,
Federated Management, and Federated Research; Chairman and
Director, Federated Research Corp.; Chairman, Passport Research,
Ltd.; Director, AEtna Life and Casualty Company; Chief Executive
Officer and Director, Trustee, or Managing General Partner of
the Funds. Mr. Donahue is the father of J. Christopher Donahue,
President and Trustee of the Trust.

Thomas G. Bigley
28th Floor, One Oxford Center
Pittsburgh, PA

Trustee

Director, Oberg Manufacturing Co.; Chairman of the Board,
Children's Hospital of Pittsburgh; Director, Trustee, or
Managing General Partner of the Funds; formerly, Senior Partner,
Ernst & Young, LLP.

John T. Conroy, Jr.
Wood/IPC Commercial Department
John R. Wood and Associates, Inc., Realtors
3255 Tamiami Trail North
Naples, FL

Trustee

President, Investment Properties Corporation; Senior Vice-
President, John R. Wood and Associates, Inc., Realtors;
President, Northgate Village Development Corporation; Partner or
Trustee in 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
One PNC Plaza - 23rd Floor
Pittsburgh, PA

Trustee

Director and Member of the Executive Committee, Michael 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.

J. Christopher Donahue *
Federated Investors Tower
Pittsburgh, PA

President and Trustee

President and Trustee, Federated Investors, Federated Advisers,
Federated Management, and Federated Research; President and
Director, 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.

James E. Dowd
571 Hayward Mill Road
Concord, MA

Trustee

Attorney-at-law; Director, The Emerging Germany Fund, Inc.;
Director, Trustee, or Managing General Partner of the Funds;
formerly, Director, Blue Cross of Massachusetts, Inc.

Lawrence D. Ellis, M.D.
3471 Fifth Avenue, Suite 1111
Pittsburgh, PA

Trustee

Hematologist, Oncologist, and Internist, Presbyterian and
Montefiore Hospitals; Professor of Medicine and Trustee,
University of Pittsburgh; Director of Corporate Health,
University of Pittsburgh Medical Center; Director, Trustee, or
Managing General Partner of the Funds.

Edward L. Flaherty, Jr.@
5916 Penn Mall
Pittsburgh, PA

Trustee

Attorney-at-law; Partner, Meyer and Flaherty; Director, Eat'N
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
225 Franklin Street
Boston, MA

Trustee

Consultant; State Representative, Commonwealth of Massachusetts;
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
5916 Penn Mall
Pittsburgh, PA

Trustee

Attorney-at-law; Partner, Meyer and Flaherty; Chairman,
Meritcare, 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
1202 Cathedral of Learning
University of Pittsburgh
Pittsburgh, PA

Trustee

Professor, Foreign Policy and Management Consultant; Trustee,
Carnegie Endowment for International Peace, RAND 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
4905 Bayard Street
Pittsburgh, PA

Trustee

Public relations/marketing consultant; Director, Trustee, or
Managing General Partner of the Funds.

Richard B. Fisher
Federated Investors Tower
Pittsburgh, PA

Vice President

Executive Vice President and Trustee, Federated Investors;
Director, Federated Research Corp.; Chairman and Director,
Federated Securities Corp.; President or Vice President of some
of the Funds; Director or Trustee of some of the Funds.

Edward C. Gonzales
Federated Investors Tower
Pittsburgh, PA

Vice President and Treasurer

Vice President, Treasurer, and Trustee, Federated Investors; Vice
President and Treasurer, Federated Advisers, Federated
Management, Federated Research, Federated Research Corp., and
Passport Research, Ltd.; Executive Vice President, Treasurer, and
Director, Federated Securities Corp.; Trustee, Federated Services
Company and Federated Shareholder Services; 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
Federated Investors Tower
Pittsburgh, PA

Vice President and Secretary

Vice President, Secretary, General Counsel, and Trustee,
Federated Investors; Vice President, Secretary, and Trustee,
Federated Advisers, Federated Management, and Federated Research;
Vice President and Secretary, Federated Research Corp. and
Passport Research, Ltd.; Trustee, Federated Services Company;
Executive Vice President, Secretary, and Trustee, Federated
Administrative Services; Secretary and Trustee, Federated
Shareholder Services; Executive Vice President and Director,
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, as
amended.
@ 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; Arrow Funds; 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 Institutional 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; The Medalist 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; 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.
Fund Ownership
Officers and Trustees own less than 1% of the Fund's outstanding
shares.
As of October 28, 1994, the following shareholder(s) of record
owned 5% or more of the outstanding Institutional Shares of the
Fund: Var & Co., St. Paul, Minnesota, owned approximately
177,488,327 shares (18.31%); First New Hampshire Investment
Services, Concord, New Hampshire, owned approximately 121,170,397
shares (12.50%); Com II, Jersey City, New Jersey, owned
approximately 89,297,578 shares (9.21%); Mertru and Company,
Muncie, Indiana, owned approximately 80,748,789 shares (8.33%);
Misco, Jackson, Mississippi, owned approximately 56,128,194
shares (5.79%); Parcol & Co., Akron, Ohio, owned approximately
55,367,245 shares (5.71%); and Edrayco, Gainesville, Georgia,
owned approximately 51,924,937 shares (5.36%).
As of October 28, 1994, the following shareholder(s) of record
owned 5% or more of the outstanding Institutional Service Shares
of the Fund: The City of Birmingham Board of Education-General
Fund, Birmingham, Alabama, owned approximately 3,000,000 shares
(52.71%); Southwest Snapple, Inc., Dallas, Texas, owned
approximately 755,782 shares (13.28%); McQueary & Henry, Dallas,
Texas, owned approximately 600,000 shares (10.54%); and
Professional Liability Insurance Services Inc., Austin, Texas,
owned approximately 349,860 shares (6.15%).
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 Fund'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.
For the fiscal years ended July 31, 1994, 1993, and 1992, the
adviser earned $1,348,444, $1,343,686, and $910,523,
respectively, of which $990,717, $768,184, and $552,320,
respectively, were voluntarily waived.
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
Administrative Services
Federated Administrative Services, a subsidiary of Federated
Investors, provides administrative personnel and services to the
Fund for a fee as described in the prospectus. Prior to March 1,
1994, Federated Administrative Services, Inc., also a subsidiary
of Federated Investors, served as the Fund's administrator. (For
purposes of this Statement of Additional Information, Federated
Administrative Services and Federated Administrative Services,
Inc., may hereinafter collectively be referred to as the
"Administrators.") For the fiscal year ended July 31, 1994, the
Administrators collectively earned $483,421. For the fiscal
years ended July 31, 1993 and 1992, Federated Administrative
Services, Inc., earned $377,706 and $274,492, respectively. 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 a director of Commercial Data
Services, Inc., a company which provides computer processing
services to Federated Administrative Services, Inc. and Federated
Administrative Services.
Custodian
State Street Bank and Trust Company, Boston, MA, is custodian for
the securities and cash of the Fund.
Transfer Agent and Portfolio Recordkeeper
Federated Services Company, Pittsburgh, PA, serves as transfer
agent and dividend disbursing agent for the Fund. The fee paid
to the transfer agent is based upon the size, type and number of
accounts and transactions made by shareholders.
Federated Services Company also maintains the Trust's accounting
records. The fee paid for this service is based upon the level
of the Fund's average net assets for the period plus out-of-
pocket expenses.
Shareholder Services Plan
This arrangement permits the payment of fees to Federated
Shareholder Services and, indirectly to financial institutions 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, 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.
For the period from July 5, 1994 (date of initial public
offering), to July 31, 1994, no payments were made pursuant to
the Shareholder Services Plan on behalf of the Institutional
Service Shares. In addition, for the period from March 1, 1994
through July 5, 1994, payments in the amount of $118,603 were
made on behalf of the Institutional Shares.
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 yield is calculated 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.
For the seven-day period ended July 31, 1994, the yield for
Institutional Shares was 4.19%. The yield for Institutional
Service Shares was 3.97% at August 1, 1994 (date of intial public
investment).
Effective Yield
The effective yield is calculated 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.
For the seven-day period ended July 31, 1994, the effective yield
for Institutional Shares was 4.27%. The effective yield for
Institutional Service Shares was 4.05% at August 1, 1994 (date of
initial public investment).
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 beginnning of the period with $1,000, adjusted
over the period by any additional shares, assuming the monthly
reinvestment of all dividends and distributions.
Cumulative total return reflects the total performance over a
specific period of time. For the period from July 5, 1994 (date
of initial public offering) through July 31, 1994, the cumulative
total return for Institutional Service Shares was 0.29%. This
total return is representative of less than one month of
activity since the date of initial public offering.
Prior to the creation of separate classes of shares, for the one-
year period ended July 31, 1994, and for the period from March
30, 1990 (start of performance) through July 31, 1994, the
average annual total returns were 3.41% and 4.92%, respectively,
for Institutional Shares.
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.
oSalomon 30-Day CD Index compares rate levels of 30-day
certificates of deposit from the top ten prime
representative banks.
oSalomon 30-Day Treasury Bill Index is a weekly quote of the
most representative yields for selected securities, issued
by the U.S. Treasury, maturing in 30 days.
oDiscount Corporation of New York 30-Day Federal Agencies is
a weekly quote of the average daily offering price for
selected federal agency issues maturing in 30 days.
Financial Statements
The financial statements for the fiscal year ended July 31, 1994,
are incorporated herein by reference to the Fund's Annual Report
dated July 31, 1994 (File No. 811-5950). A copy of the Annual
Report may be obtained without charge by contacting the Fund at
the address located on the back cover of the prospectus.

60934N104
60934N807
9110204B (11/94)

Tax-Free Obligations Fund

(A Portfolio of Money Market Obligations Trust)
Institutional Shares
Institutional Service Shares
Statement of Additional Information

This Statement of Additional Information should be read with
the prospectus(es) of Tax-Free Obligations Fund (the
"Fund"), a portfolio of Money Market Obligations Trust (the
"Trust"), dated November 30, 1994. This Statement is not a
prospectus. To receive a copy of a prospectus, write or
call the Fund.

Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779

Statement dated November 30, 1994

Federated Securities
Corp.
Distributor
A subsidiary of Federated Investors
Investment Policies 1
Acceptable Investments 1
Participation Interests 1
Municipal Leases 1
When-Issued and Delayed
Delivery Transactions 1
Repurchase Agreements 1
Investment Limitations 2
Brokerage Transactions 4
Money Market Obligations
Trust Management 4
Officers and Trustees 4
The Funds 7
Fund Ownership 8
Trustee Liability 8
Investment Advisory
Services 8
Investment Adviser 8
Advisory Fees 8
Fund Administration 9
Administrative Services 9
Custodian 9
Transfer Agent and Portfolio
Recordkeeper 9
Determining Net Asset
Value 9
Redemption in Kind 10
The Fund's Tax Status 10
Performance Information 10
Yield 10
Effective Yield 10
Tax-Equivalent Yield 10
Tax-Equivalency Table 10
Total Return 11
Performance Comparisons 11
Financial Statements 12
Appendix 13

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. 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, broker/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.
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
may be 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 to secure permitted borrowings. In those cases, it may
pledge assets having a market value not exceeding the lesser of
the dollar amounts borrowed or 15% of the value of total assets
of the Fund at the time of the pledge.
Lending Cash or Securities
The Fund will not lend any of its assets. This shall not prevent
the Fund from purchasing or holding bonds, debentures, notes,
certificates of indebtedness or other debt securities or engaging
in other transactions where 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, 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 purchase securities if, as a result of such
purchase, 25% or more of the value of its total assets would be
invested 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. The Fund may invest, as
temporary investments, 25% or more of the value of its total
assets in cash or cash items, securities issued or guaranteed by
the U.S. government, its agencies or instrumentalities or
instruments secured by these money market instruments, such as
repurchase agreements.
The Fund does not intend to purchase securities that would
increase the percentage of its assets invested in the securities
of governmental subdivisions located in any one state, territory,
or U.S. possession to 25% or more. However, the Fund may invest
25% or more of the value of its assets in tax-exempt project
notes guaranteed by the U.S. government, regardless of the
location of the issuing municipality.
If the value of Fund assets invested in the securities of a
governmental subdivision changes because of changing values, the
Fund will not be required to make any reduction in its holdings.
Diversification of Investments
With respect to 75% of the value of its total assets, the Fund
will not purchase securities issued by any one issuer (other than
cash, cash items, or securities issued or guaranteed by the
government of the United States or its agencies or
instrumentalities and repurchase agreements collateralized by
such securities) if, as a result, more than 5% of the value of
its total assets would be invested in the securities of that
issuer.
Under this limitation, each governmental subdivision, including
states and the District of Columbia, territories, possessions of
the United States, or their political subdivisions, agencies,
authorities, instrumentalities, or similar entities, will be
considered a separate issuer if its assets and revenues are
separate from those of the governmental body creating it and the
security is backed only by its own assets and revenues.
Industrial development bonds, backed only by the assets and
revenues of a nongovernmental user, are considered to be issued
solely by that user. If in the case of an industrial development
bond or governmental-issued security, a governmental or other
entity guarantees the security, such guarantee would be
considered a separate security issued by the guarantor as well as
the other issuer, subject to limited exclusions allowed by the
Investment Company Act of 1940.
Investing in Restricted Securities
The Fund will not invest more than 10% of the value of its net
assets in securities which are subject to legal or contractual
restrictions on resale.
The above limitations cannot be changed without shareholder
approval. The following investment limitations, however, may be
changed by the Trustees without shareholder approval.
Shareholders will be notified before any material change in these
limitations becomes effective.
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 Trust
The Fund will not purchase or retain the securities of any issuer
if the Officers and Trustees of the Trust or the Fund's
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 did not borrow money or pledge securities in excess of
5% of the value of its net assets during the last fiscal year and
has no present intent to do so 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. During
the fiscal year(s) ended July 31, 1994, 1993, and 1992 the Fund
paid no brokerage commissions.
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.
Money Market Obligations Trust Management
Officers and Trustees
Officers and Trustees are listed with their addresses, principal
occupations, and present positions.

John F. Donahue@*
Federated Investors Tower
Pittsburgh, PA

Chairman and Trustee

Thomas G. Bigley
28th Floor, One Oxford Center
Pittsburgh, PA

Trustee

Director, Oberg Manufacturing Co.; Chairman of the Board,
Children's Hospital of Pittsburgh; Director, Trustee, or
Managing General Partner of the Funds; formerly, Senior Partner,
Ernst & Young, LLP.

John T. Conroy, Jr.
Wood/IPC Commercial Department
John R. Wood and Associates, Inc., Realtors
3255 Tamiami Trail North
Naples, FL

Trustee

William J. Copeland
One PNC Plaza - 23rd Floor
Pittsburgh, PA

Trustee

J. Christopher Donahue *
Federated Investors Tower
Pittsburgh, PA

President and Trustee

James E. Dowd
571 Hayward Mill Road
Concord, MA

Trustee

Attorney-at-law; Director, The Emerging Germany Fund, Inc.;
Director, Trustee, or Managing General Partner of the Funds;
formerly, Director, Blue Cross of Massachusetts, Inc.

Lawrence D. Ellis, M.D.
3471 Fifth Avenue, Suite 1111
Pittsburgh, PA

Trustee

Edward L. Flaherty, Jr.@
5916 Penn Mall
Pittsburgh, PA

Trustee

Peter E. Madden
225 Franklin Street
Boston, MA

Trustee

Gregor F. Meyer
5916 Penn Mall
Pittsburgh, PA

Trustee

Wesley W. Posvar
1202 Cathedral of Learning
University of Pittsburgh
Pittsburgh, PA

Trustee

Marjorie P. Smuts
4905 Bayard Street
Pittsburgh, PA

Trustee

Public relations/marketing consultant; Director, Trustee, or
Managing General Partner of the Funds.

Richard B. Fisher
Federated Investors Tower
Pittsburgh, PA

Vice President

Edward C. Gonzales
Federated Investors Tower
Pittsburgh, PA

Vice President and Treasurer

John W. McGonigle
Federated Investors Tower
Pittsburgh, PA

Vice President and Secretary

* This Trustee is deemed to be an "interested
person" of the Trust as defined in the Investment Company Act
of 1940, as amended.
@ 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; Arrow Funds; 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 Institutional 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; The Medalist 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; 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.
Fund Ownership
Officers and Trustees own less than 1% of the Fund's outstanding
shares.
As of October 28, 1994, the following shareholder(s) of record
owned 5% or more of the outstanding Institutional Shares of the
Fund: Com II, Jersey City, New Jersey, owned approximately
43,176,544 shares (5.41%); Boatmen's Trust Company, St. Louis,
Missouri, owned approximately 61,741,865 shares (7.73%); First
Union National Bank, Charlotte, North Carolina, owned
approximately 208,016,988 shares (26.05%); and Var & Co., St.
Paul, Minnesota, owned approximately 188,540,605 shares (23.61%).
As of October 28, 1994, the following shareholder(s) of record
owned 5% or more of the outstanding Institutional Service Shares
of the Fund: Naidot & Co., Woodbridge, New Jersey, owned
approximately 54,843,700 shares (60.71%) and Morand & Company,
Chicago, Illinois, owned approximately 30,315,155 shares
(33.56%).
Trustee Liability
The Declaration of Trust provides that the Trustees will not be
liable for errors of judgment or mistakes of 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 Fund'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 the Trust.
Advisory Fees
For its advisory services, Federated Management receives an
annual investment advisory fee as described in the prospectus.
For the fiscal years ended July 31, 1994, 1993, and 1992, the
adviser earned $1,392,414, $820,734, and $469,718, respectively,
of which $1,014,059, $582,656, and $402,871, respectively, were
voluntarily waived.
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
Administrative Services
Federated Administrative Services, a subsidiary of Federated
Investors, provides administrative personnel and services to the
Fund for a fee as described in the prospectus. Prior to March 1,
1994, Federated Administrative Services, Inc., also a subsidiary
of Federated Investors, served as the Fund's administrator. (For
purposes of this Statement of Additional Information, Federated
Administrative Services and Federated Administrative Services,
Inc., may hereinafter collectively be referred to as the
"Administrators.") For the fiscal year ended July 31, 1994, the
Administrators collectively earned $493,607. For the fiscal
years ended July 31, 1993 and 1992, Federated Administrative
Services, Inc., earned $284,326 and $210,978, respectively. 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 a director of Commercial Data
Services, Inc., a company which provides computer processing
services to Federated Administrative Services, Inc. and Federated
Administrative Services.
Custodian
State Street Bank and Trust Company, Boston, MA, is custodian for
the securities and cash of the Fund.
Transfer Agent and Portfolio Recordkeeper
Federated Services Company, Pittsburgh, PA, serves as transfer
agent and dividend disbursing agent for the Fund. The fee paid
to the transfer agent is based upon the size, type and number of
accounts and transactions made by shareholders.
Federated Services Company also maintains the Trust's accounting
records. The fee paid for this service is based upon the level
of the Fund's average net assets for the period plus out-of-
pocket expenses.
Shareholder Services Plan
This arrangement permits the payment of fees to Federated
Shareholder Services and, indirectly to financial institutions 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, 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.
For the period from July 5, 1994 (date of initial public
offering), to July 31, 1994, payments in the amount of $1,491
were made pursuant to the Shareholder Services Plan on behalf of
the Institutional Service Shares. In addition, for the period
from March 1, 1994 through July 5, 1994, payments in the amount
of $129,351 were made on behalf of the Institutional Shares.
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 yield is calculated 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.
For the seven-day period ended July 31, 1994, the yield for
Institutional Shares was 2.84% and Institutional Service Shares
was 2.62%.
Effective Yield
The effective yield is calculated 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.
For the seven-day period ended July 31, 1994, the effective yield
for Institutional Shares was 2.88% and Institutional Service
Shares was 2.65%.
Tax-Equivalent Yield
The tax-equivalent yield is calculated similarly to the yield,
but is adjusted to reflect the taxable yield that the Fund would
have had to earn to equal its actual yield, assuming a 39.6% tax
rate (the maximum effective federal rate for individuals) and
assuming that income is 100% exempt.
For the seven-day period ended July 31, 1994, the tax-equivalent
yield for Institutional Shares was 4.70% and Institutional
Service Shares was 4.34%.
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

FEDERAL INCOME TAX BRACKET:
15.00% 28.00% 31.00%
36.00%39.60%
Joint Return$1-38,000 $38,001-91,850$91,851-140,000$1
40,001-$250,000OVER $250,000
Single Return $1-22,175$22,751-55,100$55,101-115,000$1
15,001-250,000OVER $250,000
Tax-Exempt
Yield Taxable Yield Equivalent
1.00% 1.18% 1.39% 1.45% 1.56%
1.66%
1.50 1.76 2.08 2.17 2.34
2.48
2.00 2.35 2.78 2.90 3.13
3.31
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

Note: The maximum marginal tax rate for each bracket was
used in calculating the taxable yield equivalent.
The chart above is for illustrative purposes only. It is
not an indicator of past or future performance of Fund
shares.
*Some portion of the Fund's income may be subject to the federal
alternative minimum tax and state and local income 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 beginnning of the period with $1,000, adjusted
over the period by any additional shares, assuming the monthly
reinvestment of all dividends and distributions.
Cumulative total return reflects the total performance over a
specific period of time. For the period from July 5, 1994 (date
of initial public offering) through July 31, 1994, the cumulative
total return for Institutional Service Shares was 0.18%. This
total return is representative of less than one month of
activity since the date of initial public offering.
Prior to the creation of separate classes of shares, for the one-
year period ended July 31, 1994, and for the period from December
12, 1989 (start of performance) through July 31, 1994, the
average annual total returns were 2.45% and 3.78%, respectively,
for Institutional Shares.
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.
oSalomon 30-Day CD Index compares rate levels of 30-day
certificates of deposit from the top ten prime
representative banks.
oSalomon 30-Day Treasury Bill Index is a weekly quote of the
most representative yields for selected securities, issued
by the U.S. Treasury, maturing in 30 days.
oDiscount Corporation of New York 30-Day Federal Agencies is
a weekly quote of the average daily offering price for
selected federal agency issues maturing in 30 days.
Financial Statements
The financial statements for the fiscal year ended July 31, 1994,
are incorporated herein by reference to the Fund's Annual Report
dated July 31, 1994 (File No. 811-5950). A copy of the Annual
Report may be obtained without charge by contacting the Fund at
the address located on the back cover of the prospectus.
Appendix
Standard and Poor's Ratings Group Municipal Bond Rating
Definitions
AAA-Debt rated "AAA" has the highest rating assigned by Standard
& Poor's Ratings Group. 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.
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.
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+."
Standard and Poor's Ratings Group Municipal Note Rating
Definitions
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 sign (+) designation.
SP-2 -- ;Satisfactory capacity to pay principal and interest.
Moody's Investors Service, Inc., Short-Term Loan Rating
Definitions
MIG1/VMIG1 -- This designation denotes best quality. There is
present strong protection by established cash flows, superior
liquidity support or demonstrated broad based access to the
market for refinancing.
MIG2/VMIG2 -- This designation denotes high quality. Margins of
protection ar4e ample although not so large as in the preceding
group.
Standard and Poor's Ratings Group Commercial Paper Ratings
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.

60934N401
60934N880
9110207B (11/94)

- --------------------------------------------------------------------------------
TREASURY OBLIGATIONS FUND
(A PORTFOLIO OF MONEY MARKET OBLIGATIONS TRUST)
INSTITUTIONAL SHARES
PROSPECTUS

The Institutional Shares of Treasury Obligations Fund (the "Fund")
offered by this prospectus represent interests in a diversified
portfolio of Money Market Obligations Trust (the "Trust"), an open-end
management investment company (a mutual fund). The Fund invests in
U.S. Treasury securities to provide current income consistent with
stability of principal.

This prospectus contains the information you should read and know
before you invest in the Fund. Keep this prospectus for future
reference.

Prospectus dated November 30, 1994

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
SUMMARY OF FUND EXPENSES 1
- ---------------------------------------------------
FINANCIAL HIGHLIGHTS--INSTITUTIONAL
SHARES 2
- ---------------------------------------------------

GENERAL INFORMATION 3
- ---------------------------------------------------
INVESTMENT INFORMATION 3
- ---------------------------------------------------
Investment Objective 3
Investment Policies 3
Investment Limitations 4
Regulatory Compliance 4

TRUST INFORMATION 5
- ---------------------------------------------------
Management of the Trust 5
Distribution of Shares 6
Administration of the Fund 6
Expenses of the Fund and Institutional
Shares 7
NET ASSET VALUE 7
- ---------------------------------------------------
INVESTING IN THE FUND 8
- ---------------------------------------------------
Share Purchases 8
Minimum Investment Required 8
Subaccounting Services 8
Certificates and Confirmations 8
Dividends 9
Capital Gains 9

REDEEMING SHARES 9
- ---------------------------------------------------
By Mail 9
Telephone Redemption 10
Accounts with Low Balances 10

SHAREHOLDER INFORMATION 10
- ---------------------------------------------------
Voting Rights 10
Massachusetts Partnership Law 11

TAX INFORMATION 11
- ---------------------------------------------------
Federal Income Tax 11
Pennsylvania Corporate and Personal
Property Taxes 11

PERFORMANCE INFORMATION 12
- ---------------------------------------------------
OTHER CLASSES OF SHARES 12
- ---------------------------------------------------
FINANCIAL HIGHLIGHTS--INSTITUTIONAL
SERVICE SHARES 13
- ---------------------------------------------------
ADDRESSES 14
- ---------------------------------------------------
</TABLE>

SUMMARY OF FUND EXPENSES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
SHAREHOLDER TRANSACTION EXPENSES
<S> <C> <C>
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 INSTITUTIONAL SHARES OPERATING EXPENSES
(As a percentage of average net assets)
<S> <C> <C>
Management Fee (after waiver) (1)................................................................. 0.10%
12b-1 Fee......................................................................................... None
Total Other Expenses.............................................................................. 0.10%
Shareholder Services Fee (2)......................................................... 0.00%
Total Institutional Shares Operating Expenses (3)......................................... 0.20%
<FN>
(1) The management fee has been reduced to reflect the voluntary waiver of a
portion of the management fee. The adviser can terminate this voluntary
waiver at any time at its sole discretion. The maximum management fee is
0.20%.
(2) The maximum shareholder services fee is 0.25%.
(3) The Total Institutional Shares Operating Expenses in the table above are
based on expenses expected during the fiscal year ending July 31, 1995. The
Total Institutional Shares Operating Expenses were 0.20% for the fiscal
year ended July 31, 1994, and were 0.30% absent the voluntary waiver of a
portion of the management fee.
</TABLE>

<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------------------------------------------------ --------- --------- --------- ---------
<S> <C> <C> <C> <C>
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. $2 $6 $11 $26
</TABLE>

THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

TREASURY OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

The following table has been audited by Arthur Andersen LLP, the Fund's
independent public accountants. Their report, dated September 15, 1994, on the
Fund's financial statements for the year ended July 31, 1994, and on the
following table for each of the periods presented, is included in the Annual
Report, which is incorporated by reference. This table should be read in
conjunction with the Fund's financial statements and notes thereto, which may be
obtained free of charge from the Fund.

<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
-----------------------------------------------------
1994 1993 1992 1991 1990*
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------
Net investment income 0.03 0.03 0.05 0.07 0.04
- ------------------------------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------------------------------
Dividends to shareholders from net investment income (0.03) (0.03) (0.05) (0.07) (0.04)
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
TOTAL RETURN** 3.35% 3.15% 4.61% 7.11% 5.09%
- ------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------
Expenses 0.20% 0.20% 0.20% 0.20% 0.20%(b)
- ------------------------------------------------------------
Net investment income 3.29% 3.11% 4.49% 6.65% 8.16%(b)
- ------------------------------------------------------------
Expense waiver/reimbursement (a) 0.10% 0.07% 0.08% 0.09% 0.15%(b)
- ------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------
Net assets, end of period
(000 omitted) $2,582,975 $2,532,482 $2,432,037 $1,678,880 $576,048
- ------------------------------------------------------------
<FN>
* Reflects operations for the period from February 23, 1990 (date of initial
public investment) to July 31, 1990.
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Computed on an annualized basis.
</TABLE>

GENERAL INFORMATION
- --------------------------------------------------------------------------------

The Trust was established as a Massachusetts business trust under a Declaration
of Trust dated October 3, 1988. The Declaration of Trust permits the Trust to
offer separate series of shares beneficial interest representing interests in
separate portfolios of securities. The shares in any one portfolio may be
offered in separate classes. With respect to this Fund, as of the date of this
prospectus, the Trustees have established two classes of shares known as
Institutional Shares and Institutional Service Shares. This prospectus relates
only to Institutional Shares of the Fund, which are designed primarily for
financial institutions as a convenient means of accumulating an interest in a
professionally managed, diversified portfolio investing only in short-term U.S.
Treasury securities. A minimum initial investment of $25,000 is required.

The Fund attempts to stabilize the value of a share at $1.00. Shares are
currently sold and redeemed at that price.

INVESTMENT INFORMATION
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

INVESTMENT POLICIES

The Fund pursues its investment objective by investing only in U.S. Treasury
securities maturing in 13 months or less. 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 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 only in U.S. Treasury securities which
are fully guaranteed as to principal and interest by the United States.

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.

The Fund will not invest more than 10% of its net assets in illiquid securities,
including repurchase agreements providing for settlement in more than seven days
after notice.

REGULATORY COMPLIANCE

change these operational policies to reflect changes in the laws and regulations
without the approval of its shareholders.

TRUST INFORMATION
- --------------------------------------------------------------------------------

MANAGEMENT OF THE TRUST

DISTRIBUTION OF SHARES

SHAREHOLDER SERVICES PLAN. The Fund has adopted a Shareholder Services Plan
(the "Services Plan") under which it may pay Federated Shareholder Services, an
affiliate of Federated Investors, an amount not exceeding .25 of 1% of the
average daily net asset value of the Institutional Shares to provide personal
services and/or maintenance of shareholder accounts to the Fund and its
shareholders. From time to time and for such periods as deemed appropriate, the
amount stated above may be reduced voluntarily.

ADMINISTRATION OF THE FUND

ADMINISTRATIVE SERVICES. Federated Administrative Services, a subsidiary of
Federated Investors, provides 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:

CUSTODIAN. State Street Bank and Trust Company, 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 & Donnelly,
Pittsburgh, PA, and Dickstein, Shapiro & Morin, L.L.P., Washington, DC.

INDEPENDENT PUBLIC ACCOUNTANTS. The independent public accountants for the Fund
are Arthur Andersen LLP, Pittsburgh, PA.

EXPENSES OF THE FUND AND INSTITUTIONAL SHARES

Holders of Institutional Shares pay their allocable portion of Fund and Trust
expenses.

NET ASSET VALUE
- --------------------------------------------------------------------------------

INVESTING IN THE FUND
- --------------------------------------------------------------------------------

SHARE PURCHASES

To make a purchase, open an account by calling Federated Securities Corp.
Information needed to establish the account will be taken by telephone.

BY WIRE. To purchase by Federal Reserve wire, call the Fund before 3:00 p.m.
(Eastern time) to place an order. The order is considered received immediately.
Payment by federal funds must be received before 3:00 p.m. (Eastern time) that
day. Federal funds should be wired as follows: Federated Services Company, c/o
State Street Bank and Trust Company, Boston, Massachusetts; Attention: EDGEWIRE;
For Credit to: Treasury Obligations Fund--Institutional Shares; 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.

BY MAIL. To purchase by mail, send a check made payable to Treasury Obligations
Fund-- Institutional Shares to: Federated Services Company, P.O. Box 8602,
Boston, MA 02266-8602. Orders by mail are considered received when payment by
check is converted into federal funds. This is normally the next business day
after the check is received.

MINIMUM INVESTMENT REQUIRED

SUBACCOUNTING SERVICES

CERTIFICATES AND CONFIRMATIONS

Monthly confirmations are sent to report transactions such as all purchases and
redemptions as well as dividends paid during the month.

DIVIDENDS

CAPITAL GAINS

REDEEMING SHARES
- --------------------------------------------------------------------------------

BY MAIL

Shares may be redeemed by sending a written request to: Treasury Obligations
Fund, P.O. Box 8602, Boston, MA 02266-8602. The written request should state:
Treasury Obligations Fund--Institutional Shares; 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.

- a trust company or commercial bank whose deposits are insured by the Bank
Insurance Fund which is administered by the Federal Deposit Insurance
Corporation ("FDIC");

- a member of the New York, American, Boston, Midwest, or Pacific Stock
Exchanges;

- a savings bank or savings and loan association whose deposits are insured
by the Savings Association Insurance Fund, which is administered by the
FDIC; or

- any other "eligible guarantor institution," as defined in the Securities
Exchange Act of 1934.

The Fund does not accept signatures guaranteed by a notary public.

TELEPHONE REDEMPTION

ACCOUNTS WITH LOW BALANCES

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.

As of October 28, 1994, Midland Corporate, Clearwater, Florida, owned 53.76% of
the voting securities of the Institutional Service Shares, and, therefore, may,
for certain purposes, be deemed to control the class and be able to affect the
outcome of certain matters presented for a vote of shareholders.

MASSACHUSETTS PARTNERSHIP LAW

TAX INFORMATION
- --------------------------------------------------------------------------------

FEDERAL INCOME TAX

PENNSYLVANIA CORPORATE AND PERSONAL PROPERTY TAXES

In the opinion of Houston, Houston, & Donnelly, counsel to the Trust:

- the Fund is not subject to Pennsylvania corporate or personal property
taxes; and

OTHER STATE AND LOCAL TAXES. Shareholders are urged to consult their own tax
advisers regarding the status of their accounts under state and local tax laws.

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

From time to time, the Fund advertises its yield and effective yield for
Institutional Shares.

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 shares 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, advertisements for the Fund may refer to ratings, rankings,
and other information in certain financial publications and/or compare its
performance to certain indices.

OTHER CLASSES OF SHARES
- --------------------------------------------------------------------------------

The Fund also offers the following class.

TREASURY OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES
- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)

The following table has been audited by Arthur Andersen LLP, the Fund's
independent public accountants. Their report, dated September 15, 1994, on the
Fund's financial statements for the year ended July 31, 1994, and on the
following table for the period presented, is included in the Annual Report,
which is incorporated by reference. This table should be read in conjunction
with the Fund's financial statements and notes thereto, which may be obtained
free of charge from the Fund.

<TABLE>
<CAPTION>
YEAR ENDED
JULY 31, 1994*
- ---------------------------------------------------------------------- --------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00
- ----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------
Net investment income 0.003
- ----------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------
Dividends to shareholders from net investment income (0.003)
- ---------------------------------------------------------------------- --------------
NET ASSET VALUE, END OF PERIOD $1.00
- ---------------------------------------------------------------------- --------------
TOTAL RETURN** 0.29%
- ----------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------
Expenses 0.39%(b)
- ----------------------------------------------------------------------
Net investment income 4.26%(b)
- ----------------------------------------------------------------------
Expense waiver/reimbursement (a) 0.10%(b)
- ----------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------
Net assets, end of period (000 omitted) $8,887
- ----------------------------------------------------------------------
<FN>

* Reflects operations for the period from July 5, 1994 (date of initial public
offering) to July 31, 1994.

** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(b) Computed on an annualized basis.
</TABLE>

ADDRESSES
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Treasury Obligations Fund
Institutional Shares Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Distributor
Federated Securities Corp. Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Investment Adviser
Federated Management Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Custodian
State Street Bank and Trust Company P.O. Box 8602
Boston, MA 02266-8602
- -------------------------------------------------------------------------------------------

Legal Counsel
Houston, Houston & Donnelly 2510 Centre City Tower
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------

Legal Counsel
Dickstein, Shapiro & Morin, L.L.P. 2101 L Street, N.W.
Washington, DC 20037
- -------------------------------------------------------------------------------------------

Independent Public Accountants
Arthur Andersen LLP 2100 One PPG Place
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------
</TABLE>

- --------------------------------------------------------------------------------
TREASURY OBLIGATIONS FUND
INSTITUTIONAL SHARES
PROSPECTUS

A Diversified Portfolio of
Money Market Obligations Trust,
an Open-End Management
Investment Company

Prospectus dated November 30,
1994

[LOGO] FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
60934N500
9110208A (11/94) [RECYCLED PAPER SYMBOL]

- --------------------------------------------------------------------------------
TREASURY OBLIGATIONS FUND
(A PORTFOLIO OF MONEY MARKET OBLIGATIONS TRUST)
INSTITUTIONAL SERVICE SHARES
PROSPECTUS

The Institutional Service Shares of Treasury Obligations Fund (the
"Fund") offered by this prospectus represent interests in a
diversified portfolio of Money Market Obligations Trust (the "Trust"),
an open-end management investment company (a mutual fund). The Fund
invests in U.S. Treasury securities to provide current income
consistent with stability of principal.

This prospectus contains the information you should read and know
before you invest in the Fund. Keep this prospectus for future
reference.

Prospectus dated November 30, 1994

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

TRUST INFORMATION 5
- ---------------------------------------------------
Management of the Trust 5
Distribution of Shares 5
Administration of the Fund 6
Expenses of the Fund and Institutional
Service Shares 6
NET ASSET VALUE 7
- ---------------------------------------------------
INVESTING IN THE FUND 7
- ---------------------------------------------------
Share Purchases 7
Minimum Investment Required 8
Subaccounting Services 8
Certificates and Confirmations 8
Dividends 8
Capital Gains 9

REDEEMING SHARES 9
- ---------------------------------------------------
By Mail 9
Telephone Redemption 10
Accounts with Low Balances 10

SHAREHOLDER INFORMATION 10
- ---------------------------------------------------
Voting Rights 10
Massachusetts Partnership Law 11

TAX INFORMATION 11
- ---------------------------------------------------
Federal Income Tax 11
Pennsylvania Corporate and Personal
Property Taxes 11

PERFORMANCE INFORMATION 12
- ---------------------------------------------------
OTHER CLASSES OF SHARES 12
- ---------------------------------------------------
FINANCIAL HIGHLIGHTS--INSTITUTIONAL
SHARES 13
- ---------------------------------------------------
ADDRESSES 14
- ---------------------------------------------------
</TABLE>

ANNUAL INSTITUTIONAL SERVICE SHARES OPERATING EXPENSES
(As a percentage of average net assets)
<S> <C> <C>
Management Fee (after waiver) (1)................................................................. 0.10%
12b-1 Fee......................................................................................... None
Total Other Expenses.............................................................................. 0.35%
Shareholder Services Fee............................................................. 0.25%
Total Institutional Service Shares Operating Expenses (2)................................. 0.45%
<FN>
(1) The management fee has been reduced to reflect the voluntary waiver of a
portion of the management fee. The adviser can terminate this voluntary
waiver at any time at its sole discretion. The maximum management fee is
0.20%.
(2) The Total Institutional Service Shares Operating Expenses in the table
above are based on expenses expected during the fiscal year ending July 31,
1995. The Total Institutional Service Shares Operating Expenses were 0.39%
for the fiscal year ended July 31, 1994, and were 0.49% absent the
voluntary waiver of a portion of the management fee.
</TABLE>

<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS
- ------------------------------------------------------------------------------------ --------- ---------
<S> <C> <C>
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 $14
</TABLE>

THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

TREASURY OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES
- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)

The following table has been audited by Arthur Andersen LLP, the Fund's
independent public accountants. Their report, dated September 15, 1994, on the
Fund's financial statements for the year ended July 31, 1994, and on the
following table for the period presented, is included in the Annual Report,
which is incorporated by reference. This table should be read in conjunction
with the Fund's financial statements and notes thereto, which may be obtained
free of charge from the Fund.

* Reflects operations for the period from July 5, 1994 (date of initial public
offering) to July 31, 1994.

** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(b) Computed on an annualized basis.
</TABLE>

GENERAL INFORMATION
- --------------------------------------------------------------------------------

The Trust was established as a Massachusetts business trust under a Declaration
of Trust dated October 3, 1988. The Declaration of Trust permits the Trust to
offer separate series of shares beneficial interest representing interests in
separate portfolios of securities. The shares in any one portfolio may be
offered in separate classes. With respect to this Fund, as of the date of this
prospectus, the Trustees have established two classes of shares known as
Institutional Service Shares and Institutional Shares. This prospectus relates
only to Institutional Service Shares of the Fund, which are designed primarily
for financial institutions as a convenient means of accumulating an interest in
a professionally managed, diversified portfolio investing only in short-term
U.S. Treasury securities. A minimum initial investment of $25,000 is required.

The Fund attempts to stabilize the value of a share at $1.00. Shares are
currently sold and redeemed at that price.

INVESTMENT INFORMATION
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

INVESTMENT POLICIES

ACCEPTABLE INVESTMENTS. The Fund invests only in U.S. Treasury securities which
are fully guaranteed as to principal and interest by the United States.

INVESTMENT LIMITATIONS

The Fund will not invest more than 10% of its net assets in illiquid securities,
including repurchase agreements providing for settlement in more than seven days
after notice.

REGULATORY COMPLIANCE

change these operational policies to reflect changes in the laws and regulations
without the approval of its shareholders.

TRUST INFORMATION
- --------------------------------------------------------------------------------

MANAGEMENT OF THE TRUST

DISTRIBUTION OF SHARES

ADMINISTRATION OF THE FUND

CUSTODIAN. State Street Bank and Trust Company, 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 & Donnelly,
Pittsburgh, PA, and Dickstein, Shapiro & Morin, L.L.P., Washington, DC.

INDEPENDENT PUBLIC ACCOUNTANTS. The independent public accountants for the Fund
are Arthur Andersen LLP, Pittsburgh, PA.

EXPENSES OF THE FUND AND INSTITUTIONAL SERVICE SHARES

Holders of Institutional Service Shares pay their allocable portion of Fund and
Trust expenses.

of meetings of Trustees; legal fees of the Trust; association membership dues;
and such non-recurring and extraordinary items as may arise.

At present, the only expenses allocated to the Institutional Service Shares as a
class are expenses under the Fund's Services Plan which relate to Institutional
Service Shares. However, the Board of Trustees reserves the right to allocate
certain other expenses to holders of Shares as it deems appropriate ("class
expenses"). In any case, class expenses would be limited to: transfer agent fees
as identified by the transfer agent as attributable to holders of Institutional
Service Shares; printing and postage expenses related to preparing and
distributing materials such as shareholder reports, prospectuses and proxies to
current shareholders; registration fees paid to the Securities and Exchange
Commission and registration fees paid to state securities commissions; expenses
related to administrative personnel and services as required to support holders
of Institutional Service Shares; legal fees relating solely to Institutional
Service Shares; and Trustees' fees incurred as a result of issues relating
solely to Institutional Service Shares.

NET ASSET VALUE
- --------------------------------------------------------------------------------

INVESTING IN THE FUND
- --------------------------------------------------------------------------------

SHARE PURCHASES

To make a purchase, open an account by calling Federated Securities Corp.
Information needed to establish the account will be taken by telephone.

BY WIRE. To purchase by Federal Reserve wire, call the Fund before 3:00 p.m.
(Eastern time) to place an order. The order is considered received immediately.
Payment by federal funds must be received before 3:00 p.m. (Eastern time) that
day. Federal funds should be wired as follows: Federated Services Company, c/o
State Street Bank and Trust Company, Boston, Massachusetts; Attention: EDGEWIRE;
For Credit to: Treasury Obligations Fund--Institutional Service Shares; 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.

BY MAIL. To purchase by mail, send a check made payable to Treasury Obligations
Fund-- Institutional Service Shares to: Federated Services Company, P.O. Box
8602, Boston, MA 02266-8602. Orders by mail are considered received when payment
by check is converted into federal funds. This is normally the next business day
after the check is received.

MINIMUM INVESTMENT REQUIRED

SUBACCOUNTING SERVICES

CERTIFICATES AND CONFIRMATIONS

Monthly confirmations are sent to report transactions such as all purchases and
redemptions as well as dividends paid during the month.

DIVIDENDS

CAPITAL GAINS

REDEEMING SHARES
- --------------------------------------------------------------------------------

BY MAIL

Shares may be redeemed by sending a written request to: Treasury Obligations
Fund, P.O. Box 8602, Boston, MA 02266-8602. The written request should state:
Treasury Obligations Fund--Institutional Service Shares; 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.

- a trust company or commercial bank whose deposits are insured by the Bank
Insurance Fund which is administered by the Federal Deposit Insurance
Corporation ("FDIC");

- a member of the New York, American, Boston, Midwest, or Pacific Stock
Exchanges;

- a savings bank or savings and loan association whose deposits are insured
by the Savings Association Insurance Fund, which is administered by the
FDIC; or

- any other "eligible guarantor institution," as defined in the Securities
Exchange Act of 1934.

The Fund does not accept signatures guaranteed by a notary public.

TELEPHONE REDEMPTION

ACCOUNTS WITH LOW BALANCES

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

MASSACHUSETTS PARTNERSHIP LAW

TAX INFORMATION
- --------------------------------------------------------------------------------

FEDERAL INCOME TAX

PENNSYLVANIA CORPORATE AND PERSONAL PROPERTY TAXES

In the opinion of Houston, Houston, & Donnelly, counsel to the Trust:

- the Fund is not subject to Pennsylvania corporate or personal property
taxes; and

OTHER STATE AND LOCAL TAXES. Shareholders are urged to consult their own tax
advisers regarding the status of their accounts under state and local tax laws.

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

From time to time, the Fund advertises its yield and effective yield for
Institutional Service Shares.

From time to time, advertisements for the Fund may refer to ratings, rankings,
and other information in certain financial publications and/or compare its
performance to certain indices.

OTHER CLASSES OF SHARES
- --------------------------------------------------------------------------------

The Fund also offers the following class.

TREASURY OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1994 1993 1992 1991 1990*
- ----------------------------------------------------------------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------
Net investment income 0.03 0.03 0.05 0.07 0.04
- -----------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------
Dividends to shareholders from net investment income (0.03) (0.03) (0.05) (0.07) (0.04)
- ----------------------------------------------------------------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN** 3.35% 3.15% 4.61% 7.11% 5.09%
- -----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------
Expenses 0.20% 0.20% 0.20% 0.20%
0.20%(b)
- -----------------------------------------------------------------
Net investment income 3.29% 3.11% 4.49% 6.65%
8.16%(b)
- -----------------------------------------------------------------
Expense waiver/reimbursement (a) 0.10% 0.07% 0.08% 0.09%
0.15%(b)
- -----------------------------------------------------------------
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $2,582,975 $2,532,482 $2,432,037 $1,678,880 $576,048
- -----------------------------------------------------------------
<FN>

* Reflects operations for the period from February 23, 1990 (date of initial
public investment) to July 31, 1990.

** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(b) Computed on an annualized basis.
</TABLE>

ADDRESSES
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Treasury Obligations Fund
Institutional Service Shares Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Distributor
Federated Securities Corp. Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Investment Adviser
Federated Management Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Custodian
State Street Bank and Trust Company P.O. Box 8602
Boston, MA 02266-8602
- -------------------------------------------------------------------------------------------

Legal Counsel
Houston, Houston & Donnelly 2510 Centre City Tower
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------

Legal Counsel
Dickstein, Shapiro & Morin, L.L.P. 2101 L Street, N.W.
Washington, DC 20037
- -------------------------------------------------------------------------------------------

Independent Public Accountants
Arthur Andersen LLP 2100 One PPG Place
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------
</TABLE>

- --------------------------------------------------------------------------------
TREASURY OBLIGATIONS FUND
INSTITUTIONAL SERVICE SHARES

PROSPECTUS

A Diversified Portfolio of
Money Market Obligations Trust,
an Open-End Management
Investment Company

Prospectus dated November 30,
1994

[LOGO] FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
60934N872
9110208A-SS (11/94) [RECYCLED PAPER SYMBOL]

Treasury Obligations Fund

(A Portfolio of Money Market Obligations Trust)
Institutional Shares
Institutional Service Shares
Statement of Additional Information

This Statement of Additional Information should be read with
the prospectus(es) of Treasury Obligations Fund (the
"Fund"), a portfolio of Money Market Obligations Trust (the
"Trust"), dated November 30, 1994. This Statement is not a
prospectus. To receive a copy of a prospectus, write or
call the Fund.

Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779

Statement dated November 30, 1994

Federated Securities
Corp.
Distributor
A subsidiary of Federated Investors
Investment Policies 1
When-Issued and Delayed
Delivery Transactions 1
Repurchase Agreements 1
Lending of Portfolio
Securities 1
Investment Limitations 1
Brokerage Transactions 3
Money Market Obligations
Trust Management 3
Officers and Trustees 3
The Funds 6
Fund Ownership 7
Trustee Liability 7
Investment Advisory
Services 7
Investment Adviser 7
Advisory Fees 7
Administrative Services 8
Custodian 8
Transfer Agent and Portfolio
Recordkeeper 8
Shareholder Services Plan 8
Determining Net Asset
Value 8
Redemption in Kind 9
The Fund's Tax Status 9
Performance Information 9
Yield 9
Effective Yield 9
Total Return 9
Performance Comparisons 10
Financial Statements 10
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.
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. 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
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.
Lending of Portfolio Securities
The collateral received when the Fund lends portfolio securities
must be valued daily and, should the market value of the loaned
securities increase, the borrower must furnish additional
collateral to the Fund. During the time portfolio securities are
on loan, the borrower pays the Fund any dividends or interest
paid on such securities. Loans are subject to termination at the
option of the Fund or the borrower. The Fund may pay reasonable
administrative and custodial fees in connection with a loan and
may pay a negotiated portion of the interest earned on the cash
or equivalent collateral to the borrower or placing broker.
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. In those
cases, it may pledge assets having a market value not exceeding
the lesser of the dollar amounts borrowed or 15% of the value of
total assets of the Fund at the time of the pledge.
Lending Cash or Securities
The Fund will not lend any of its assets, except portfolio
securities. This shall not prevent the Fund from purchasing or
holding bonds, debentures, notes, certificates of indebtedness or
other debt securities, entering into repurchase agreements, or
engaging in transactions where 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.
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, 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.
Diversification of Investments
With respect to securities comprising 75% of the value of its
total assets, the Fund will not purchase securities of any one
issuer (other than cash, cash items, or securities issued or
guaranteed by the government of the United States or its agencies
or instrumentalities and repurchase agreements collateralized by
such U.S. government securities) if as a result more than 5% of
the value of its total assets would be invested in the securities
of that issuer, or if it would own more than 10% of the
outstanding voting securities of that issuer.
The above limitations cannot be changed without shareholder
approval. The following investment limitations, however, may be
changed by the Trustees without shareholder approval.
Shareholders will be notified before any material change in these
limitations becomes effective.
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 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 Trust
The Fund will not purchase or retain the securities of any issuer
if the Officers and Trustees of the Trust or the Fund's
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 did not borrow money or pledge securities in excess of
5% of the value of its net assets during the last fiscal year and
has no present intent to do so 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. During
the fiscal year(s) ended July 31, 1994, 1993, and 1992, the Fund
paid no brokerage commissions.
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.
Money Market Obligations Trust Management
Officers and Trustees
Officers and Trustees are listed with their addresses, principal
occupations, and present positions.

John F. Donahue@*
Federated Investors Tower
Pittsburgh, PA

Chairman and Trustee

Thomas G. Bigley
28th Floor, One Oxford Center
Pittsburgh, PA

Trustee

Director, Oberg Manufacturing Co.; Chairman of the Board,
Children's Hospital of Pittsburgh; Director, Trustee, or
Managing General Partner of the Funds; formerly, Senior Partner,
Ernst & Young, LLP.

John T. Conroy, Jr.
Wood/IPC Commercial Department
John R. Wood and Associates, Inc., Realtors
3255 Tamiami Trail North
Naples, FL

Trustee

William J. Copeland
One PNC Plaza - 23rd Floor
Pittsburgh, PA

Trustee

J. Christopher Donahue *
Federated Investors Tower
Pittsburgh, PA

President and Trustee

James E. Dowd
571 Hayward Mill Road
Concord, MA

Trustee

Attorney-at-law; Director, The Emerging Germany Fund, Inc.;
Director, Trustee, or Managing General Partner of the Funds;
formerly, Director, Blue Cross of Massachusetts, Inc.

Lawrence D. Ellis, M.D.
3471 Fifth Avenue, Suite 1111
Pittsburgh, PA

Trustee

Edward L. Flaherty, Jr.@
5916 Penn Mall
Pittsburgh, PA

Trustee

Peter E. Madden
225 Franklin Street
Boston, MA

Trustee

Gregor F. Meyer
5916 Penn Mall
Pittsburgh, PA

Trustee

Wesley W. Posvar
1202 Cathedral of Learning
University of Pittsburgh
Pittsburgh, PA

Trustee

Marjorie P. Smuts
4905 Bayard Street
Pittsburgh, PA

Trustee

Public relations/marketing consultant; Director, Trustee, or
Managing General Partner of the Funds.

Richard B. Fisher
Federated Investors Tower
Pittsburgh, PA

Vice President

Edward C. Gonzales
Federated Investors Tower
Pittsburgh, PA

Vice President and Treasurer

John W. McGonigle
Federated Investors Tower
Pittsburgh, PA

Vice President and Secretary

* This Trustee is deemed to be an "interested
person" of the Trust as defined in the Investment Company Act
of 1940, as amended.
@ 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; Arrow Funds; 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 Institutional 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; The Medalist 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; 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.
Fund Ownership
Officers and Trustees own less than 1% of the Fund's outstanding
shares.
As of October 28, 1994, the following shareholder(s) of record
owned 5% or more of the outstanding Institutional Shares of the
Fund: Firstier Bank, NA, Lincoln, Omaha, Nebraska, owned
approximately 275,183,089 shares (9.60%); Shawmut Bank NA,
Boston, Massachusetts, owned approximately 548,334,124 shares
(19.13%); Com II, Jersey City, New Jersey, owned approximately
202,211,530 shares (7.05%); First Union National Bank, Charlotte,
North Carolina, owned approximately 162,159,927 shares (5.66%);
and Var & Co., St. Paul, Minnesota, owned approximately
458,609,222 shares (15.99%).
As of October 28, 1994, the following shareholder(s) of record
owned 5% or more of the outstanding Institutional Service Shares
of the Fund: Peoples Bank, Bridgeport, Connecticut, owned
approximately 3,592,750 shares (15.55%); Bank of America, Austin,
Texas, owned approximately 1,800,381 shares (7.79%); and Midland
Corporate, Clearwater, Florida, owned approximately 12,422,697
shares (53.76%).
Trustee Liability
The Declaration of Trust provides that the Trustees will not be
liable for errors of judgment or mistakes of 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 Fund'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 the Trust.
Advisory Fees
For its advisory services, Federated Management receives an
annual investment advisory fee as described in the prospectus.
For the fiscal years ended July 31, 1994, 1993, and 1992, the
adviser earned $4,939,384, $4,563,447, and $4,375,739,
respectively, of which $2,435,439, $1,647,164, and $1,711,388,
respectively, were voluntarily waived.
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
Administrative Services
Federated Administrative Services, a subsidiary of Federated
Investors, provides administrative personnel and services to the
Fund for a fee as described in the prospectus. Prior to March 1,
1994, Federated Administrative Services, Inc., also a subsidiary
of Federated Investors, served as the Fund's administrator. (For
purposes of this Statement of Additional Information, Federated
Administrative Services and Federated Administrative Services,
Inc., may hereinafter collectively be referred to as the
"Administrators.") For the fiscal year ended July 31, 1994, the
Administrators collectively earned $1,380,769. For the fiscal
years ended July 31, 1993 and 1992, Federated Administrative
Services, Inc., earned $770,936 and $660,557, respectively. 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 a director of Commercial Data
Services, Inc., a company which provides computer processing
services to Federated Administrative Services, Inc. and Federated
Administrative Services.
Custodian
State Street Bank and Trust Company, Boston, MA, is custodian for
the securities and cash of the Fund.
Transfer Agent and Portfolio Recordkeeper
Federated Services Company, Pittsburgh, PA, serves as transfer
agent and dividend disbursing agent for the Fund. The fee paid
to the transfer agent is based upon the size, type and number of
accounts and transactions made by shareholders.
Federated Services Company also maintains the Trust's accounting
records. The fee paid for this service is based upon the level
of the Fund's average net assets for the period plus out-of-
pocket expenses.
Shareholder Services Plan
This arrangement permits the payment of fees to Federated
Shareholder Services and, indirectly to financial institutions 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, 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.
For the period from July 5, 1994 (date of initial public
offering), to July 31, 1994, payments in the amount of $532 were
made pursuant to the Shareholder Services Plan on behalf of the
Institutional Service Shares. In addition, for the period from
March 1, 1994 through July 5, 1994, payments in the amount of
$393,605 were made on behalf of the Institutional Shares.
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 yield is calculated 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.
For the seven-day period ended July 31, 1994, the yield for
Institutional Shares was 4.10% and Institutional Service Shares
was 3.87%.
Effective Yield
The effective yield is calculated 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.
For the seven-day period ended July 31, 1994, the effective yield
for Institutional Shares was 4.18% and Institutional Service
Shares was 3.95%.
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 beginnning of the period with $1,000, adjusted
over the period by any additional shares, assuming the monthly
reinvestment of all dividends and distributions.
Cumulative total return reflects the total performance over a
specific period of time. For the period from July 5, 1994 (date
of initial public offering) through July 31, 1994, the cumulative
total return for Institutional Service Shares was 0.29%. This
total return is representative of less than one month of
activity since the date of initial public offering.
Prior to the creation of separate classes of shares, for the one-
year period ended July 31, 1994, and for the period from December
12, 1989 (start of performance) through July 31, 1994, the
average annual total returns were 3.35% and 5.02%, respectively,
for Institutional Shares.
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.
oSalomon 30-Day CD Index compares rate levels of 30-day
certificates of deposit from the top ten prime
representative banks.
oSalomon 30-Day Treasury Bill Index is a weekly quote of the
most representative yields for selected securities, issued
by the U.S. Treasury, maturing in 30 days.
oDiscount Corporation of New York 30-Day Federal Agencies is
a weekly quote of the average daily offering price for
selected federal agency issues maturing in 30 days.
Financial Statements
The financial statements for the fiscal year ended July 31, 1994,
are incorporated herein by reference to the Fund's Annual Report
dated July 31, 1994 (File No. 811-5950). A copy of the Annual
Report may be obtained without charge by contacting the Fund at
the address located on the back cover of the prospectus.

60934N500
60934N872
9110208B (11/94)

- --------------------------------------------------------------------------------
TAX-FREE OBLIGATIONS FUND
(A PORTFOLIO OF MONEY MARKET OBLIGATIONS TRUST)
INSTITUTIONAL SHARES
PROSPECTUS

The Institutional Shares of Tax-Free Obligations Fund (the "Fund")
offered by this prospectus represent interests in a diversified
portfolio of Money Market Obligations Trust (the "Trust"), an open-end
management investment company (a mutual fund). The Fund invests in
municipal securities to provide dividend income exempt from federal
regular income tax consistent with stability of principal.

This prospectus contains the information you should read and know
before you invest in the Fund. Keep this prospectus for future
reference.

Prospectus dated November 30, 1994

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

TRUST INFORMATION 8
- ---------------------------------------------------
Management of the Trust 8
Distribution of Shares 8
Administration of the Fund 9
Expenses of the Fund and Institutional
Shares 9
NET ASSET VALUE 10
- ---------------------------------------------------
INVESTING IN THE FUND 10
- ---------------------------------------------------
Share Purchases 10
Minimum Investment Required 11
Subaccounting Services 11
Certificates and Confirmations 11
Dividends 11
Capital Gains 12

REDEEMING SHARES 12
- ---------------------------------------------------
By Mail 12
Telephone Redemption 13
Accounts with Low Balances 13

SHAREHOLDER INFORMATION 13
- ---------------------------------------------------
Voting Rights 13
Massachusetts Partnership Law 14

TAX INFORMATION 14
- ---------------------------------------------------
Federal Income Tax 14
Pennsylvania Corporate and Personal
Property Taxes 15

PERFORMANCE INFORMATION 15
- ---------------------------------------------------
OTHER CLASSES OF SHARES 15
- ---------------------------------------------------
FINANCIAL HIGHLIGHTS--INSTITUTIONAL
SERVICE SHARES 17
- ---------------------------------------------------
ADDRESSES 18
- ---------------------------------------------------
</TABLE>

SUMMARY OF FUND EXPENSES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
SHAREHOLDER TRANSACTION EXPENSES
<S> <C> <C>
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

THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

TAX-FREE OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

The following table has been audited by Arthur Andersen LLP, the Fund's
independent public accountants. Their report dated September 15, 1994, on the
Fund's financial statements for the year ended July 31, 1994, and on the
following table for each of the periods presented, is included in the Annual
Report, which is incorporated by reference. This table should be read in
conjunction with the Fund's financial statements and notes thereto, which may be
obtained free of charge from the Fund.

<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
-----------------------------------------------------
1994 1993 1992 1991 1990*
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------
Net investment income 0.02 0.03 0.04 0.05 0.04
- ------------------------------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------------------------------
Dividends to shareholders from net investment income (0.02) (0.03) (0.04) (0.05) (0.04)
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
TOTAL RETURN** 2.45% 2.54% 3.73% 5.13% 3.70%
- ------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------
Expenses 0.20% 0.20% 0.20% 0.20% 0.20% (b)
- ------------------------------------------------------------
Net investment income 2.41% 2.49% 3.58% 4.93% 5.75% (b)
- ------------------------------------------------------------
Expense waiver/reimbursement (a) 0.15% 0.14% 0.17% 0.26% 0.21% (b)
- ------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------
Net assets, end of period
(000 omitted) $789,755 $454,119 $308,855 $165,669 $145,552
- ------------------------------------------------------------

<FN>

* Reflects operations for the period from December 12, 1989 (date of initial
public investment) to July 31, 1990.

** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(b) Computed on an annualized basis.
</TABLE>

GENERAL INFORMATION
- --------------------------------------------------------------------------------

The Trust was established as a Massachusetts business trust under a Declaration
of Trust dated October 3, 1988. The Declaration of Trust permits the Trust to
offer separate series of shares of beneficial interest representing interests in
separate portfolios of securities. The shares in any one portfolio may be
offered in separate classes. With respect to the Fund, as of the date of this
prospectus, the Trustees have established two classes of shares known as
Institutional Shares and Institutional Service Shares. This prospectus relates
only to Institutional Shares of the Fund, which are designed primarily for
financial institutions as a convenient means of accumulating an interest in a
professionally managed, diversified portfolio investing primarily in short-term
municipal securities. The Fund may not be a suitable investment for retirement
plans since it invests in municipal securities. A minimum initial investment of
$25,000 is required.

The Fund attempts to stabilize the value of a share at $1.00. Shares are
currently sold and redeemed at that price.

INVESTMENT INFORMATION
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

The investment objective of the Fund is to provide dividend income exempt from
federal regular income tax consistent with stability of principal. 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
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 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 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 ("Municipal Securities").
Examples of Municipal Securities include, but are not limited to:

- tax and revenue anticipation notes ("TRANs") issued to finance working
capital needs in anticipation of receiving taxes or other revenues;

- bond anticipation notes ("BANs") that are intended to be refinanced
through a later issuance of longer-term bonds;

- municipal commercial paper and other short-term notes;

- variable rate demand notes;

- municipal bonds (including bonds having serial maturities and pre-refunded
bonds) and leases; and

- participation, 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 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 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 securities in which the Fund invests must be rated in the highest
short-term rating category by one or more nationally recognized statistical
rating organizations ("NRSROs") or be of comparable quality to securities having
such ratings. An NRSRO's highest rating category is determined without regard
for sub-categories and gradations. For example, securities rated SP-1+ or SP-1
by Standard & Poor's Ratings Group ("S&P"), MIG-1 by Moody's Investors Service,
Inc. ("Moodys"), or FIN-1+ or FIN-1 by Fitch Investors Service, Inc. ("Fitch")
are all considered rated in the highest short-term rating category. The Fund
will follow applicable regulations in determining whether a security rated by
more than one NRSRO can be treated as being in the highest short-term rating
category; currently, such securities must be rated by two NRSROs in their
highest rating category. See "Regulatory Compliance."

Further, the Fund has the ability but no present intention of investing in:
securities that are rated MIG-2 or VMIG-2 by Moody's, SP-2 by S&P, or FIN-2 by
Fitch; tax-exempt commercial paper that is rated P-2 by Moody's, A-2 by S&P, or
F-2 by Fitch; and securities that are not rated but are deemed to be of
comparable quality. Shareholders will be notified should the Fund decide to
invest in these securities.

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.

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.

values of the securities purchased may vary from the purchase prices.
Accordingly, the Fund may pay more/less than the market value of the securities
on the settlement date.

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 Municipal
Securities is subject to the federal alternative minimum tax.

MUNICIPAL SECURITIES

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.

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 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 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
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 Municipal Securities
acceptable for purchase by the Fund could become limited.

The Fund may invest in 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 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 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.

INVESTMENT LIMITATIONS

REGULATORY COMPLIANCE

TRUST INFORMATION
- --------------------------------------------------------------------------------

MANAGEMENT OF THE TRUST

DISTRIBUTION OF SHARES

SHAREHOLDER SERVICES PLAN. The Fund has adopted a Shareholder Services Plan
(the "Services Plan") under which it may pay Federated Shareholder Services, an
affiliate of Federated Investors, an

amount not exceeding .25 of 1% of the average daily net asset value of the
Institutional Shares to provide personal services and/or maintenance of
shareholder accounts to the Fund and its shareholders. From time to time and for
such periods as deemed appropriate, the amount stated above may be reduced
voluntarily.

ADMINISTRATION OF THE FUND

CUSTODIAN. State Street Bank and Trust Company, 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 & Donnelly,
Pittsburgh, PA, and Dickstein, Shapiro & Morin, L.L.P., Washington, DC.

INDEPENDENT PUBLIC ACCOUNTANTS. The independent public accountants for the Fund
are Arthur Andersen LLP, Pittsburgh, PA.

EXPENSES OF THE FUND AND INSTITUTIONAL SHARES

Holders of Institutional Shares pay their allocable portion of Fund and Trust
expenses.

NET ASSET VALUE
- --------------------------------------------------------------------------------

INVESTING IN THE FUND
- --------------------------------------------------------------------------------

SHARE PURCHASES

To make a purchase, open an account by calling Federated Securities Corp.
Information needed to establish the account will be taken by telephone.

BY WIRE. To purchase by Federal Reserve wire, call the Fund before 3:00 p.m.
(Eastern time) to place an order. The order is considered received immediately.
Payment by federal funds must be received

before 3:00 p.m. (Eastern time) that day. Federal funds should be wired as
follows: Federated Services Company, c/o State Street Bank and Trust Company,
Boston, Massachusetts; Attention: EDGEWIRE; For Credit to: Tax-Free Obligations
Fund--Institutional Shares; 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.

BY MAIL. To purchase by mail, send a check made payable to Tax-Free Obligations
Fund-- Institutional Shares to: Federated Services Company, P.O. Box 8602,
Boston, MA 02266-8602. Orders by mail are considered received when payment by
check is converted into federal funds. This is normally the next business day
after the check is received.

MINIMUM INVESTMENT REQUIRED

SUBACCOUNTING SERVICES

CERTIFICATES AND CONFIRMATIONS

Monthly confirmations are sent to report transactions such as all purchases and
redemptions as well as dividends paid during the month.

DIVIDENDS

CAPITAL GAINS

REDEEMING SHARES
- --------------------------------------------------------------------------------

BY MAIL

Shares may be redeemed by sending a written request to: Tax-Free Obligations
Fund, P.O. Box 8602, Boston, MA 02266-8602. The written request should state:
Tax-Free Obligations Fund--Institutional Shares; shareholders 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.

- a trust company or commercial bank whose deposits are insured by the Bank
Insurance Fund which is administered by the Federal Deposit Insurance
Corporation ("FDIC");

- a member of the New York, American, Boston, Midwest, or Pacific Stock
Exchanges;

- a savings bank or savings and loan association whose deposits are insured
by the Savings Association Insurance Fund, which is administered by the
FDIC; or

- any other "eligible guarantor institution," as defined in the Securities
Exchange Act of 1934.

The Fund does not accept signatures guaranteed by a notary public.

TELEPHONE REDEMPTION

If the redemption request is received before 12:00 noon (Eastern time), the
proceeds will be wired the same day to the shareholder's account at a domestic
commercial bank which is a member of the Federal Reserve System, and those
shares redeemed will not be entitled to that day's dividend. A daily dividend
will be paid on shares redeemed if the redemption request is received after
12:00 noon (Eastern time). However, the proceeds are not wired until the
following business day.

ACCOUNTS WITH LOW BALANCES

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

As of October 28, 1994, First Union National Bank, Charlotte, North Carolina,
owned 26.05% of the voting securities of the Institutional Shares, and,
therefore, may, for certain purposes, be deemed to

control the class and be able to affect the outcome of certain matters presented
for a vote of shareholders. In addition, Naidot & Co., Woodbridge, New Jersey,
and Morand & Company, Chicago, Illinois, owned 60.71% and 33.56%, respectively,
of the voting securities of the Institutional Service Shares, and, therefore,
may, for certain purposes, be deemed to control the class and be able to affect
the outcome of certain matters presented for a vote of shareholders.

MASSACHUSETTS PARTNERSHIP LAW

TAX INFORMATION
- --------------------------------------------------------------------------------

FEDERAL INCOME TAX

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.

PENNSYLVANIA CORPORATE AND PERSONAL PROPERTY TAXES

In the opinion of Houston, Houston, & Donnelly, counsel to the Trust:

- the Fund is not subject to Pennsylvania corporate or personal property
taxes; and

OTHER STATE AND LOCAL TAXES. Because interest received by the Fund may not be
exempt from all state and local income taxes, shareholders may be required to
pay state and local taxes on dividends received from the Fund. Shareholders are
urged to consult their own tax advisers regarding the status of their accounts
under state and local tax laws.

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

From time to time, the Fund advertises its yield, effective yield, and
tax-equivalent yield for Institutional Shares.

The performance figures will be calculated separately for each class of shares.
Because each class of shares is subject to different expenses, the performance
of Institutional Shares will exceed the yield, effective yield, and
tax-equivalent yield of Institutional Service Shares for the same period.

From time to time, advertisements for the Fund may refer to ratings, rankings,
and other information in certain financial publications and/or compare its
performance to certain indices.

OTHER CLASSES OF SHARES
- --------------------------------------------------------------------------------

The Fund also offers the following class.

Institutional Service Shares are sold at net asset value primarily to accounts
for which financial institutions act in an agency or fiduciary capacity.
Investments in Institutional Service Shares are

subject to a minimum initial investment of $25,000. Institutional Service Shares
are currently subject to the maximum shareholder services fee of 0.25%.

TAX-FREE OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES
- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)

The following table has been audited by Arthur Andersen LLP, the Fund's
independent public accountants. Their report dated September 15, 1994, on the
Fund's financial statements for the year ended July 31, 1994, and on the
following table for the period presented, is included in the Annual Report,
which is incorporated by reference. This table should be read in conjunction
with the Fund's financial statements and notes thereto, which may be obtained
free of charge from the Fund.

<TABLE>
<CAPTION>
YEAR ENDED
JULY 31, 1994*
- ---------------------------------------------------------------------- --------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00
- ----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------
Net investment income 0.002
- ----------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------
Dividends to shareholders from net investment income (0.002)
- ---------------------------------------------------------------------- --------------
NET ASSET VALUE, END OF PERIOD $1.00
- ---------------------------------------------------------------------- --------------
TOTAL RETURN** 0.18%
- ----------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------
Expenses 0.39%(b)
- ----------------------------------------------------------------------
Net investment income 3.04%(b)
- ----------------------------------------------------------------------
Expense waiver/reimbursement (a) 0.15%(b)
- ----------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------
Net assets, end of period (000 omitted) $25,148
- ----------------------------------------------------------------------
<FN>

* Reflects operations for the period from July 5, 1994 (date of initial public
offering) to July 31, 1994.

** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(b) Computed on an annualized basis.
</TABLE>

ADDRESSES
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Tax-Free Obligations Fund
Institutional Shares Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Distributor
Federated Securities Corp. Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Investment Adviser
Federated Management Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Custodian
State Street Bank and Trust Company P.O. Box 8602
Boston, MA 02266-8602
- -------------------------------------------------------------------------------------------

Legal Counsel
Houston, Houston & Donnelly 2510 Centre City Tower
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------

Legal Counsel
Dickstein, Shapiro & Morin, L.L.P. 2101 L Street, N.W.
Washington, DC 20037
- -------------------------------------------------------------------------------------------

Independent Public Accountants
Arthur Andersen LLP 2100 One PPG Place
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------
</TABLE>

- --------------------------------------------------------------------------------
TAX-FREE OBLIGATIONS FUND
INSTITUTIONAL SHARES
PROSPECTUS

A Diversified Portfolio of
Money Market Obligations Trust,
an Open-End Management
Investment Company

Prospectus dated November 30,
1994

[LOGO] FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
60934N401
9110207A (11/94) [RECYCLED PAPER SYMBOL]

- --------------------------------------------------------------------------------
TAX-FREE OBLIGATIONS FUND
(A PORTFOLIO OF MONEY MARKET OBLIGATIONS TRUST)
INSTITUTIONAL SERVICE SHARES
PROSPECTUS

The Institutional Service Shares of Tax-Free Obligations Fund (the
"Fund") offered by this prospectus represent interests in a
diversified portfolio of Money Market Obligations Trust (the "Trust"),
an open-end management investment company (a mutual fund). The Fund
invests in municipal securities to provide dividend income exempt from
federal regular income tax consistent with stability of principal.

This prospectus contains the information you should read and know
before you invest in the Fund. Keep this prospectus for future
reference.

Prospectus dated November 30, 1994

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
SUMMARY OF FUND EXPENSES 1
- ---------------------------------------------------
FINANCIAL HIGHLIGHTS--INSTITUTIONAL
SERVICE SHARES 2
- ---------------------------------------------------
GENERAL INFORMATION 3
- ---------------------------------------------------
INVESTMENT INFORMATION 3
- ---------------------------------------------------
Investment Objective 3
Investment Policies 3
Municipal Securities 6
Investment Risks 7
Investment Limitations 7
Regulatory Compliance 7
TRUST INFORMATION 7
- ---------------------------------------------------
Management of the Trust 7
Distribution of Shares 8
Administration of the Fund 9
Expenses of the Fund and Institutional
Service Shares 9

NET ASSET VALUE 10
- ---------------------------------------------------
INVESTING IN THE FUND 10
- ---------------------------------------------------
Share Purchases 10
Minimum Investment Required 11
Subaccounting Services 11
Certificates and Confirmations 11
Dividends 11
Capital Gains 11

REDEEMING SHARES 11
- ---------------------------------------------------
By Mail 12
Telephone Redemption 12
Accounts with Low Balances 13

SHAREHOLDER INFORMATION 13
- ---------------------------------------------------
Voting Rights 13
Massachusetts Partnership Law 13

TAX INFORMATION 14
- ---------------------------------------------------
Federal Income Tax 14
Pennsylvania Corporate and Personal
Property Taxes 14

PERFORMANCE INFORMATION 15
- ---------------------------------------------------
OTHER CLASSES OF SHARES 15
- ---------------------------------------------------
FINANCIAL HIGHLIGHTS--INSTITUTIONAL
SHARES 16
- ---------------------------------------------------
ADDRESSES 17
- ---------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS
- ------------------------------------------------------------------------------------- --------- ---------
<S> <C> <C>
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 $14
</TABLE>

THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

TAX-FREE OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES
- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)

The following table has been audited by Arthur Andersen LLP, the Fund's
independent public accountants. Their report dated September 15, 1994, on the
Fund's financial statements for the year ended July 31, 1994, and on the
following table for the period presented, is included in the Annual Report,
which is incorporated by reference. This table should be read in conjunction
with the Fund's financial statements and notes thereto, which may be obtained
free of charge from the Fund.

<TABLE>
<CAPTION>
YEAR ENDED
JULY 31,
1994*
- ---------------------------------------------------------------------- -------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00
- ----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------
Net investment income 0.002
- ----------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------
Dividends to shareholders from net investment income (0.002)
- ---------------------------------------------------------------------- -------------
NET ASSET VALUE, END OF PERIOD $1.00
- ---------------------------------------------------------------------- -------------
TOTAL RETURN** 0.18%
- ----------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------
Expenses 0.39%(b)
- ----------------------------------------------------------------------
Net investment income 3.04%(b)
- ----------------------------------------------------------------------
Expense waiver/reimbursement (a) 0.15%(b)
- ----------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------
Net assets, end of period (000 omitted) $25,148
- ----------------------------------------------------------------------
<FN>

* Reflects operations for the period from July 5, 1994 (date of initial public
offering) to July 31, 1994.

** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(b) Computed on an annualized basis.
</TABLE>

GENERAL INFORMATION
- --------------------------------------------------------------------------------

The Trust was established as a Massachusetts business trust under a Declaration
of Trust dated October 3, 1988. The Declaration of Trust permits the Trust to
offer separate series of shares of beneficial interest representing interests in
separate portfolios of securities. The shares in any one portfolio may be
offered in separate classes. With respect to the Fund, as of the date of this
prospectus, the Trustees have established two classes of shares known as
Institutional Service Shares and Institutional Shares. This prospectus relates
only to Institutional Service Shares of the Fund, which are designed primarily
for financial institutions as a convenient means of accumulating an interest in
a professionally managed, diversified portfolio investing primarily in
short-term municipal securities. The Fund may not be a suitable investment for
retirement plans since it invests in municipal securities. A minimum initial
investment of $25,000 is required.

The Fund attempts to stabilize the value of a share at $1.00. Shares are
currently sold and redeemed at that price.

INVESTMENT INFORMATION
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

INVESTMENT POLICIES

without shareholder approval. Shareholders will be notified before any material
change in these policies becomes effective.

- tax and revenue anticipation notes ("TRANs") issued to finance working
capital needs in anticipation of receiving taxes or other revenues;

- bond anticipation notes ("BANs") that are intended to be refinanced
through a later issuance of longer-term bonds;

- municipal commercial paper and other short-term notes;

- variable rate demand notes;

- municipal bonds (including bonds having serial maturities and pre-refunded
bonds) and leases; and

- participation, trust, and partnership interests in any of the foregoing
obligations.

RATINGS. The securities in which the Fund invests must be rated in the highest
short-term rating category by one or more nationally recognized statistical
rating organizations ("NRSROs") or be of comparable quality to securities having
such ratings. An NRSRO's highest rating category is determined without regard
for sub-categories and gradations. For example, securities rated SP-1+ or SP-1
by Standard & Poor's Ratings Group ("S&P"), MIG-1 by Moody's Investors Service,
Inc. ("Moody's"), or FIN-1+ or FIN-1 by Fitch Investors Service, Inc. ("Fitch")
are all considered rated in the highest short-term rating category. The Fund
will follow applicable regulations in determining whether a security rated by
more than one NRSRO can be treated as being in the highest short-term rating
category; currently, such securities must be rated by two NRSROs in their
highest rating category. See "Regulatory Compliance."

values of the securities purchased may vary from the purchase prices.
Accordingly, the Fund may pay more/less than the market value of the securities
on the settlement date.

MUNICIPAL SECURITIES

INVESTMENT RISKS

INVESTMENT LIMITATIONS

REGULATORY COMPLIANCE

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.

DISTRIBUTION OF SHARES

such fees and the basis upon which such fees will be paid will be determined
from time to time by Federated Shareholder Services.

ADMINISTRATION OF THE FUND

CUSTODIAN. State Street Bank and Trust Company, 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 & Donnelly,
Pittsburgh, PA, and Dickstein, Shapiro & Morin, L.L.P., Washington, DC.

INDEPENDENT PUBLIC ACCOUNTANTS. The independent public acountants for the Fund
are Arthur Andersen LLP, Pittsburgh, PA.

EXPENSES OF THE FUND AND INSTITUTIONAL SERVICE SHARES

Holders of Institutional Service Shares pay their allocable portion of Fund and
Trust expenses.

At present, the only expenses allocated to the Institutional Service Shares as a
class are expenses under the Fund's Services Plan which relate to Institutional
Service Shares. However, the Board of

Trustees reserves the right to allocate certain other expenses to holders of
Institutional Service Shares as it deems appropriate ("class expenses"). In any
case, class expenses would be limited to: transfer agent fees as identified by
the transfer agent as attributable to holders of Institutional Service Shares;
printing and postage expenses related to preparing and distributing materials
such as shareholder reports, prospectuses and proxies to current shareholders;
registration fees paid to the Securities and Exchange Commission and
registration fees paid to state securities commissions; expenses related to
administrative personnel and services as required to support holders of
Institutional Service Shares; legal fees relating solely to Institutional
Service Shares; and Trustees' fees incurred as a result of issues relating
solely to Institutional Service Shares.

NET ASSET VALUE
- --------------------------------------------------------------------------------

INVESTING IN THE FUND
- --------------------------------------------------------------------------------

SHARE PURCHASES

To make a purchase, open an account by calling Federated Securities Corp.
Information needed to establish the account will be taken by telephone.

BY WIRE. To purchase by Federal Reserve wire, call the Fund before 3:00 p.m.
(Eastern time) to place an order. The order is considered received immediately.
Payment by federal funds must be received before 3:00 p.m. (Eastern time) that
day. Federal funds should be wired as follows: Federated Services Company, c/o
State Street Bank and Trust Company, Boston, Massachusetts; Attention: EDGEWIRE;
For Credit to: Tax-Free Obligations Fund--Institutional Service Shares; 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.

BY MAIL. To purchase by mail, send a check made payable to Tax-Free Obligations
Fund-- Institutional Service Shares to: Federated Services Company, P.O. Box
8602, Boston, MA 02266-8602. Orders by mail are considered received when payment
by check is converted into federal funds. This is normally the next business day
after the check is received.

MINIMUM INVESTMENT REQUIRED

SUBACCOUNTING SERVICES

CERTIFICATES AND CONFIRMATIONS

Monthly confirmations are sent to report transactions such as all purchases and
redemptions as well as dividends paid during the month.

DIVIDENDS

CAPITAL GAINS

REDEEMING SHARES
- --------------------------------------------------------------------------------

BY MAIL

Shares may be redeemed by sending a written request to: Tax-Free Obligations
Fund, P.O. Box 8602, Boston, MA 02266-8602. The written request should state:
Tax-Free Obligations Fund--Institutional Service Shares; 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.

- a trust company or commercial bank whose deposits are insured by the Bank
Insurance Fund which is administered by the Federal Deposit Insurance
Corporation ("FDIC");

- a member of the New York, American, Boston, Midwest, or Pacific Stock
Exchanges;

- a savings bank or savings and loan association whose deposits are insured
by the Savings Association Insurance Fund, which is administered by the
FDIC; or

- any other "eligible guarantor institution," as defined in the Securities
Exchange Act of 1934.

The Fund does not accept signatures guaranteed by a notary public.

TELEPHONE REDEMPTION

ACCOUNTS WITH LOW BALANCES

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

As of October 28, 1994, Naidot & Co., Woodbridge, New Jersey, and Morand &
Company, Chicago, Illinois, owned 60.71% and 33.56%, respectively, of the voting
securities of the Institutional Service Shares, and, therefore, may, for certain
purposes, be deemed to control the class and be able to affect the outcome of
certain matters presented for a vote of shareholders. In addition, First Union
National Bank, Charlotte, North Carolina, owned 26.05% of the voting securities
of the Institutional Shares, and, therefore, may, for certain purposes, be
deemed to control the class and be able to affect the outcome of certain matters
presented for a vote of shareholders.

MASSACHUSETTS PARTNERSHIP LAW

TAX INFORMATION
- --------------------------------------------------------------------------------

FEDERAL INCOME 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.

PENNSYLVANIA CORPORATE AND PERSONAL PROPERTY TAXES

In the opinion of Houston, Houston, & Donnelly, counsel to the Trust:

- the Fund is not subject to Pennsylvania corporate or personal property
taxes; and

OTHER STATE AND LOCAL TAXES. Because interest received by the Fund may not be
exempt from all state and local income taxes, shareholders may be required to
pay state and local taxes on dividends

received from the Fund. Shareholders are urged to consult their own tax advisers
regarding the status of their accounts under state and local tax laws.

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

From time to time, the Fund advertises its yield, effective yield, and
tax-equivalent yield for Institutional Service Shares.

From time to time, advertisements for the Fund may refer to ratings, rankings,
and other information in certain financial publications and/or compare its
performance to certain indices.

OTHER CLASSES OF SHARES
- --------------------------------------------------------------------------------

The Fund also offers the following class.

TAX-FREE OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
---------------------------------------------------
<S> <C> <C> <C> <C> <C>
1994 1993 1992 1991 1990*
- ---------------------------------------------------------------------- -------- -------- -------- -------- -----------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------
Net investment income 0.02 0.03 0.04 0.05 0.04
- ----------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------
Dividends to shareholders from net investment income (0.02) (0.03) (0.04) (0.05) (0.04)
- ---------------------------------------------------------------------- -------- -------- -------- -------- -----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------- -------- -------- -------- -------- -----------
TOTAL RETURN** 2.45% 2.54% 3.73% 5.13% 3.70%
- ----------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------
Expenses 0.20% 0.20% 0.20% 0.20% 0.20%(b)
- ----------------------------------------------------------------------
Net investment income 2.41% 2.49% 3.58% 4.93% 5.75%(b)
- ----------------------------------------------------------------------
Expense waiver/reimbursement (a) 0.15% 0.14% 0.17% 0.26% 0.21%(b)
- ----------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------
Net assets, end of period (000 omitted) $789,755 $454,119 $308,855 $165,669 $145,552
- ----------------------------------------------------------------------
<FN>
* Reflects operations for the period from December 12, 1989 (date of initial
public investment) to July 31, 1990.
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Computed on an annualized basis.
</TABLE>

ADDRESSES
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Tax-Free Obligations Fund
Institutional Service Shares Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Distributor
Federated Securities Corp. Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Investment Adviser
Federated Management Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Custodian
State Street Bank and Trust Company P.O. Box 8602
Boston, MA 02266-8602
- -------------------------------------------------------------------------------------------

Legal Counsel
Houston, Houston & Donnelly 2510 Centre City Tower
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------

Legal Counsel
Dickstein, Shapiro & Morin, L.L.P. 2101 L Street, N.W.
Washington, DC 20037
- -------------------------------------------------------------------------------------------

Independent Public Accountants
Arthur Andersen LLP 2100 One PPG Place
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------
</TABLE>

- --------------------------------------------------------------------------------
TAX-FREE OBLIGATIONS FUND
INSTITUTIONAL SERVICE SHARES

PROSPECTUS

A Diversified Portfolio of
Money Market Obligations Trust,
an Open-End Management
Investment Company

Prospectus dated November 30,
1994

[LOGO] FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
60934N880
9110207A-SS (11/94) [RECYCLED PAPER SYMBOL]

Prime Obligations Fund

(A Portfolio of Money Market Obligations Trust)
Institutional Shares
Institutional Service Shares
Statement of Additional Information

This Statement of Additional Information should be read with
the prospectus(es) of Prime Obligations Fund (the "Fund"), a
portfolio of Money Market Obligations Trust (the "Trust")
dated November 30, 1994. This Statement is not a prospectus.
To receive a copy of a prospectus, write or call the Fund.

Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779

Statement dated November 30, 1994

Federated Securities
Corp.
Distributor
A subsidiary of Federated Investors
Investment Policies 1
Bank Instruments 1
When-Issued and Delayed
Delivery Transactions 1
Repurchase Agreements 1
Reverse Repurchase
Agreements 1
Lending of Portfolio
Securities 2
Investment Limitations 2
Brokerage Transactions 3
Money Market Obligations
Trust Management 4
Officers and Trustees 4
The Funds 7
Fund Ownership 7
Trustee Liability 8
Investment Advisory Services 8
Investment Adviser 8
Advisory Fees 8
State Expense Limitations 8
Administrative Services 8
Custodian 9
Transfer Agent and Portfolio
Recordkeeper 9
Shareholder Services Plan 9
Determining Net Asset Value 9
Redemption in Kind 9
The Fund's Tax Status 10
Performance Information 10
Yield 10
Effective Yield 10
Total Return 10
Performance Comparisons 10
Financial Statements 11
Appendix 12
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.
Bank Instruments
The instruments of banks and savings and loans whose deposits are
insured by the Bank Insurance Fund ("BIF") or the Savings
Association Insurance Fund ("SAIF"), such as certificates of
deposit, demand and time deposits, savings shares, and bankers'
acceptances, are not necessarily guaranteed by those
organizations. In addition to domestic bank instruments, the
Fund may invest in: Eurodollar Certificates of Deposit issued by
foreign branches of U.S. or foreign banks; Eurodollar Time
Deposits, which are U.S. dollar-denominated deposits in foreign
branches of U.S. or foreign banks; Canadian Time Deposits, which
are U.S. dollar-denominated deposits issued by branches of major
Canadian banks located in the United States; and Yankee
Certificates of Deposit, which are U.S. dollar-denominated
certificates of deposit issued by U.S. branches of foreign banks
and held in the United States.
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. 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
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.
Reverse Repurchase Agreements
The Fund may also enter into reverse repurchase agreements.
These transactions are similar to borrowing cash. In a reverse
repurchase agreement, the Fund transfers possession of a
portfolio instrument in return for a percentage of the
instrument's market value in cash and agrees that on a stipulated
date in the future the Fund will repurchase the portfolio
instrument by remitting the original consideration plus interest
at an agreed upon rate. The use of reverse repurchase agreements
may enable the Fund to avoid selling portfolio instruments at a
time when a sale may be deemed to be disadvantageous, but does
not ensure this result. When effecting reverse repurchase
agreements, liquid assets of the Fund, in a dollar amount
sufficient to make payment for the obligations to be purchased,
are: segregated on the Fund's records at the trade date; marked
to market daily; and maintained until the transaction is settled.
U.S. Government Securities
The types of U.S. government securities in which the Fund may
invest generally include direct obligations of the U.S. Treasury
(such as U.S. Treasury bills, notes, and bonds) and obligations
issued or guaranteed by U.S. government agencies or
instrumentalities. these securities are backed by:
o the full faith and credit of the U.S. Treasury;
o the issuer's right to borrow from the U.S. Treasury;
o the discretionary authority of the U.S. government to
purchase certain obligations of agencies or
instrumentalities; or
o the credit of the agency or instrumentality issuing the
obligations.
Lending of Portfolio Securities
The collateral received when the Fund lends portfolio securities
must be valued daily and, should the market value of the loaned
securities increase, the borrower must furnish additional
collateral to the Fund. During the time portfolio securities are
on loan, the borrower pays the Fund any dividends or interest
paid on such securities. Loans are subject to termination at the
option of the Fund or the borrower. The Fund may pay reasonable
administrative and custodial fees in connection with a loan and
may pay a negotiated portion of the interest earned on the cash
or equivalent collateral to the borrower or placing broker.
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
may be 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 directly or through reverse repurchase
agreements in amounts up to one-third of the value of its total
assets, including the amounts borrowed.
The Fund will not borrow money or engage in reverse repurchase
agreements 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. During the period any reverse
repurchase agreements are outstanding, the Fund will restrict the
purchase of portfolio securities to money market instruments
maturing on or before the expiration date of the reverse
repurchase agreements, but only to the extent necessary to assure
completion of the reverse repurchase agreements.
Pledging Assets
The Fund will not mortgage, pledge, or hypothecate any assets
except to secure permitted borrowings. In those cases, it may
pledge assets having a market value not exceeding the lesser of
the dollar amounts borrowed or 15% of the value of total assets
of the Fund at the time of the pledge.
Lending Cash or Securities
The Fund will not lend any of its assets, except portfolio
securities. This shall not prevent the Fund from purchasing or
holding bonds, debentures, notes, certificates of indebtedness or
other debt securities, entering into repurchase agreements, or
engaging in other transactions where permitted by its investment
objective, policies, and limitations or Declaration of Trust.
Investing in Commodities and Real Estate
The Fund will not purchase or sell commodities, commodity
contracts, or commodity futures contracts. The Fund will not
purchase or sell real estate, 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, except that the Fund will generally
invest 25% or more of the value of its total assets in the
commercial paper issued by finance companies. The Fund may
invest 25% or more of the value of its total assets in cash or
cash items, securities issued or guaranteed by the U.S.
government, its agencies or instrumentalities or instruments
secured by these money market instruments, such as repurchase
agreements.
Diversification of Investments
With respect to 75% of the value of its total assets, the Fund
will not purchase securities issued by any one issuer (other than
cash, cash items, or securities issued or guaranteed by the
government of the United States or its agencies or
instrumentalities and repurchase agreements collateralized by
such securities) if as a result more than 5% of the value of its
total assets would be invested in the securities of that issuer.
Investing in Restricted Securities
The Fund will not invest more than 10% of the value of its net
assets in securities which are subject to legal or contractual
restrictions on resale, except for commercial paper issued under
Section 4 (2) of the Securities Act of 1933.
The above limitations cannot be changed without shareholder
approval. The following investment limitations, however, may be
changed by the Trustees without shareholder approval.
Shareholders will be notified before any material change in these
limitations becomes effective.
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 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 Trust
The Fund will not purchase or retain the securities of any issuer
if the Officers and Trustees of the Trust or the Fund's
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 did not borrow money or pledge securities in excess of
5% of the value of its net assets during the last fiscal year and
has no present intent to do so 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. During
the fiscal year(s) ended July 31, 1994, 1993, and 1992, the Fund
paid no brokerage commissions.
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.
Money Market Obligations Trust Management
Officers and Trustees
Officers and Trustees are listed with their addresses, principal
occupations, and present positions.

John F. Donahue@*
Federated Investors Tower
Pittsburgh, PA

Chairman and Trustee

Thomas G. Bigley
28th Floor, One Oxford Center
Pittsburgh, PA

Trustee

Director, Oberg Manufacturing Co.; Chairman of the Board,
Children's Hospital of Pittsburgh; Director, Trustee, or
Managing General Partner of the Funds; formerly, Senior Partner,
Ernst & Young, LLP.

John T. Conroy, Jr.
Wood/IPC Commercial Department
John R. Wood and Associates, Inc., Realtors
3255 Tamiami Trail North
Naples, FL

Trustee

William J. Copeland
One PNC Plaza - 23rd Floor
Pittsburgh, PA

Trustee

J. Christopher Donahue *
Federated Investors Tower
Pittsburgh, PA

President and Trustee

James E. Dowd
571 Hayward Mill Road
Concord, MA

Trustee

Attorney-at-law; Director, The Emerging Germany Fund, Inc.;
Director, Trustee, or Managing General Partner of the Funds;
formerly, Director, Blue Cross of Massachusetts, Inc.

Lawrence D. Ellis, M.D.
3471 Fifth Avenue, Suite 1111
Pittsburgh, PA

Trustee

Edward L. Flaherty, Jr.@
5916 Penn Mall
Pittsburgh, PA

Trustee

Peter E. Madden
225 Franklin Street
Boston, MA

Trustee

Gregor F. Meyer
5916 Penn Mall
Pittsburgh, PA

Trustee

Wesley W. Posvar
1202 Cathedral of Learning
University of Pittsburgh
Pittsburgh, PA

Trustee

Marjorie P. Smuts
4905 Bayard Street
Pittsburgh, PA

Trustee

Public relations/marketing consultant; Director, Trustee, or
Managing General Partner of the Funds.

Richard B. Fisher
Federated Investors Tower
Pittsburgh, PA

Vice President

Edward C. Gonzales
Federated Investors Tower
Pittsburgh, PA

Vice President and Treasurer

John W. McGonigle
Federated Investors Tower
Pittsburgh, PA

Vice President and Secretary

* This Trustee is deemed to be an "interested person" of the
Trust as defined in the Investment Company Act of 1940, as
amended.
@ 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; Arrow Funds; 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 Institutional 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; The Medalist 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; 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.
Fund Ownership
Officers and Trustees own less than 1% of the Fund's outstanding
shares.
As of October 28, 1994, the following shareholder(s) of record
owned 5% or more of the outstanding Institutional Shares of the
Fund: Var & Co, St. Paul, Minnesota, owned approximately
249,260,420 shares (14.14%); Ombit Co., Omaha, Nebraska, owned
approximately 106,643,069 shares (6.05%); Boston Safe Deposit and
Trust, Pittsburgh, Pennnsylvania, owned approximately 100,000,000
shares (5.67%); and Detroit Public Schools, Detroit, Michigan,
owned approximately 94,383,519 shares (5.35%).
As of October 28, 1994, the following shareholder(s) of record
owned 5% or more of the outstanding Institutional Service Shares
of the Fund: Peoples Bank, Bridgeport, Connecticut, owned
approximately 82,325,760 shares (81.93%) and National Instruments
Corp., Austin, Texas, owned approximately 6,483,695 shares
(6.45%).
Trustee Liability
The Declaration of Trust provides that the Trustees will not be
liable for errors of judgment or mistakes of 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 Fund'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 the Trust.
Advisory Fees
For its advisory services, Federated Management receives an
annual investment advisory fee as described in the prospectus.
For the fiscal years ended July 31, 1994, 1993, and 1992, the
adviser earned $2,368,688, $2,033,502, and $1,227,947,
respectively, of which $1,615,921, $955,268, and $633,165,
respectively, were voluntarily waived.
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
Administrative Services
Federated Administrative Services, a subsidiary of Federated
Investors, provides administrative personnel and services to the
Fund for a fee as described in the prospectus. Prior to March 1,
1994, Federated Administrative Services, Inc., also a subsidiary
of Federated Investors, served as the Fund's administrator. (For
purposes of this Statement of Additional Information, Federated
Administrative Services and Federated Administrative Services,
Inc., may hereinafter collectively be referred to as the
"Administrators.") For the fiscal year ended July 31, 1994, the
Administrators collectively earned $762,145. For the fiscal
years ended July 31, 1993 and 1992, Federated Administrative
Services, Inc., earned $455,288 and $283,251, respectively. 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 a director of Commercial Data
Services, Inc., a company which provides computer processing
services to Federated Administrative Services, Inc. and Federated
Administrative Services.
Custodian
State Street Bank and Trust Company, Boston, MA, is custodian for
the securities and cash of the Fund.
Transfer Agent and Portfolio Recordkeeper
Federated Services Company, Pittsburgh, PA, serves as transfer
agent and dividend disbursing agent for the Fund. The fee paid
to the transfer agent is based upon the size, type and number of
accounts and transactions made by shareholders.
Federated Services Company also maintains the Trust's accounting
records. The fee paid for this service is based upon the level
of the Fund's average net assets for the period plus out-of-
pocket expenses.
Shareholder Services Plan
This arrangement permits the payment of fees to Federated
Shareholder Services and, indirectly to financial institutions 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, 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.
For the period from July 5, 1994 (date of initial public
offering), to July 31, 1994, payments in the amount of $652 were
made pursuant to the Shareholder Services Plan on behalf of the
Institutional Service Shares. In addition, for the period from
March 1, 1994 through July 5, 1994, payments in the amount of
$205,170 were made on behalf of the Institutional Shares.
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 yield is calculated 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.
For the seven-day period ended July 31, 1994, the yield for
Institutional Shares was 4.30% and Institutional Service Shares
was 4.08%.
Effective Yield
The effective yield is calculated 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.
For the seven-day period ended July 31, 1994, the effective yield
for Institutional Shares was 4.39% and Institutional Service
Shares was 4.16%.
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 beginnning of the period with $1,000, adjusted
over the period by any additional shares, assuming the monthly
reinvestment of all dividends and distributions.
Cumulative total return reflects the total performance over a
specific period of time. For the period from July 5, 1994 (date
of initial public offering) through July 31, 1994, the cumulative
total return for Institutional Service Shares was 0.30%. This
total return is representative of less than one month of
activity since the date of initial public offering.
Prior to the creation of separate classes of shares, for the one-
year period ended July 31, 1994, and for the period from March
26, 1990 (start of performance) through July 31, 1994, the
average annual total returns were 3.47% and 4.98%, respectively,
for Institutional Shares.
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.
oBank Rate MonitorC National Index, Miami Beach, Florida,
published weekly, is an average of the interest rates of
personal money market deposit accounts at ten of the largest
banks and thrifts in each of the five largest Standard
Metropolitan Statistical Areas. If more than one rate is
offered, the lowest rate is used. Account minimums and
compounding methods may vary.
Financial Statements
The financial statements for the fiscal year ended July 31, 1994,
are incorporated herein by reference to the Fund's Annual Report
dated July 31, 1994 (File No. 811-5950). A copy of the Annual
Report may be obtained without charge by contacting the Fund at
the address located on the back cover of the prospectus.
Appendix
Standard and Poor's Ratings Group Corporate Bond Rating
Definitions
AAA-Debt rated "AAA" has the highest rating assigned by Standard
& Poor's Ratings Group. 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. Corporate 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. Investment Grade Bond 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 & Poor's Ratings Group 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.

60934N708
60934N203
9110205B (11/94)

- --------------------------------------------------------------------------------
PRIME OBLIGATIONS FUND
(A PORTFOLIO OF MONEY MARKET OBLIGATIONS TRUST)
INSTITUTIONAL SHARES
PROSPECTUS

The Institutional Shares of Prime Obligations Fund (the "Fund")
offered by this prospectus represent interests in a diversified
portfolio of Money Market Obligations Trust (the "Trust"), an open-end
management investment company (a mutual fund). The Fund invests in
money market securities to provide current income consistent with
stability of principal.

This prospectus contains the information you should read and know
before you invest in the Fund. Keep this prospectus for future
reference.

Prospectus dated November 30, 1994

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

TRUST INFORMATION 7
- ---------------------------------------------------
Management of the Trust 7
Distribution of Shares 8
Administration of the Fund 9
Expenses of the Fund and Institutional
Shares 9
NET ASSET VALUE 10
- ---------------------------------------------------
INVESTING IN THE FUND 10
- ---------------------------------------------------
Share Purchases 10
Minimum Investment Required 11
Subaccounting Services 11
Certificates and Confirmations 11
Dividends 11
Capital Gains 11

REDEEMING SHARES 11
- ---------------------------------------------------
By Mail 12
Telephone Redemption 12
Accounts with Low Balances 13

SHAREHOLDER INFORMATION 13
- ---------------------------------------------------
Voting Rights 13
Massachusetts Partnership Law 13

TAX INFORMATION 14
- ---------------------------------------------------
Federal Income Tax 14
Pennsylvania Corporate and Personal
Property Taxes 14

PERFORMANCE INFORMATION 14
- ---------------------------------------------------
OTHER CLASSES OF SHARES 15
- ---------------------------------------------------
FINANCIAL HIGHLIGHTS--INSTITUTIONAL
SERVICE SHARES 16
- ---------------------------------------------------
ADDRESSES 17
- ---------------------------------------------------
</TABLE>

SUMMARY OF FUND EXPENSES
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
INSTITUTIONAL SHARES
SHAREHOLDER TRANSACTION EXPENSES
<S> <C> <C>
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 INSTITUTIONAL SHARES OPERATING EXPENSES
(As a percentage of average net assets)
Management Fee (after waiver) (1)................................................................. 0.08%
12b-1 Fee......................................................................................... None
Total Other Expenses.............................................................................. 0.12%
Shareholder Services Fee (2)......................................................... 0.00%
Total Institutional Shares Operating Expenses (3)......................................... 0.20%
<FN>
(1) The management fee has been reduced to reflect the voluntary waiver of a
portion of the management fee. The adviser can terminate this voluntary
waiver at any time at its sole discretion. The maximum management fee is
0.20%.
(2) The maximum shareholder services fee is 0.25%.
(3) The Total Institutional Shares Operating Expenses in the table above are
based on expenses expected during the fiscal year ending July 31, 1995. The
Total Institutional Shares Operating Expenses were 0.20% for the fiscal
year ended July 31, 1994, and were 0.34% absent the voluntary waiver of a
portion of the management fee.
</TABLE>

THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

PRIME OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
---------------------------------------------------------------
1994 1993 1992 1991 1990*
- ------------------------------------------------------------ ---------- ---------- ---------- ---------- ---------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------
Net investment income 0.03 0.03 0.05 0.07 0.03
- ------------------------------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------------------------------
Dividends to shareholders from net investment income (0.03) (0.03) (0.05) (0.07) (0.03)
- ------------------------------------------------------------ ---------- ---------- ---------- ---------- ---------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------ ---------- ---------- ---------- ---------- ---------------
TOTAL RETURN** 3.47% 3.25% 4.74% 7.30% 2.89%
- ------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------
Expenses 0.20% 0.20% 0.20% 0.20% 0.20%(b)
- ------------------------------------------------------------
Net investment income 3.47% 3.20% 4.53% 6.54% 8.21%(b)
- ------------------------------------------------------------
Expense waiver/reimbursement (a) 0.14% 0.09% 0.10% 0.24% 0.68%(b)
- ------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------
Net assets, end of period (000 omitted) $1,250,979 $1,098,159 $917,418 $473,593 $34,777
- ------------------------------------------------------------
<FN>

* Reflects operations for the period from March 26, 1990 (date of initial
public investment) to July 31, 1990.

** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(b) Computed on an annualized basis.
</TABLE>

GENERAL INFORMATION
- --------------------------------------------------------------------------------

The Trust was established as a Massachusetts business trust under a Declaration
of Trust dated October 3, 1988. The Declaration of Trust permits the Trust to
offer separate series of shares of beneficial interest representing interests in
separate portfolios of securities. The shares in any one portfolio may be
offered in separate classes. With respect to this Fund, as of the date of this
prospectus, the Trustees have established two classes of shares known as
Institutional Shares and Institutional Service Shares. This prospectus relates
only to Institutional Shares of the Fund, which are designed primarily for
financial institutions as a convenient means of accumulating an interest in a
professionally managed, diversified portfolio investing primarily in short-term
money market securities. A minimum initial investment of $25,000 is required.

The Fund attempts to stabilize the value of a share at $1.00. Shares are
currently sold and redeemed at that price.

INVESTMENT INFORMATION
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

INVESTMENT POLICIES

The Fund pursues its investment objective by investing primarily in a portfolio
of money market securities maturing in 13 months or less. 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 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 in high quality money market
instruments that are either rated in the highest short-term rating category by
one or more nationally recognized statistical

rating organizations ("NRSROs") or are of comparable quality to securities
having such ratings. Examples of these instruments include, but are not limited
to:

- domestic issues of corporate debt obligations, including variable rate
demand notes;

- commercial paper (including Canadian Commercial Paper and Europaper);

- certificates of deposit, demand and time deposits, bankers' acceptances
and other instruments of domestic and foreign banks and other deposit
institutions ("Bank Instruments");

- short-term credit facilities;

- asset-backed securities;

- obligations issued or guaranteed as to payment of principal and interest
by the U.S. government or one of its agencies or instrumentalities; and

- other money market instruments.

The Fund invests only in instruments denominated and payable in U.S. dollars.

BANK INSTRUMENTS. The Fund only invests in Bank Instruments either issued
by an institution having capital, surplus and undivided profits over $100
million, or insured by the Bank Insurance Fund ("BIF") or the Savings
Association Insurance Fund ("SAIF"). Bank Instruments may include Eurodollar
Certificates of Deposit ("ECDs"), Yankee Certificates of Deposit ("Yankee
CDs") and Eurodollar Time Deposits ("ETDs"). The Fund will treat securities
credit enhanced with a bank's letter of credit as Bank Instruments.

ASSET-BACKED SECURITIES. Asset-backed securities are securities issued by
special purpose entities whose primary assets consist of a pool of loans or
accounts receivable. The securities may take the form of beneficial
interests in special purpose trusts, limited partnership interests, or
commercial paper or other debt securities issued by a special purpose
corporation. Although the securities often have some form of credit or
liquidity enhancement, payments on the securities depend predominantly upon
collections of the loans and receivables held by the issuer.

SHORT-TERM CREDIT FACILITIES. The Fund may enter into, or acquire
participations in, short-term borrowing arrangements with corporations,
consisting of either a short-term revolving

credit facility or a master note agreement payable upon demand. Under these
arrangements, the borrower may reborrow funds during the term of the
facility. The Fund treats any commitments to provide such advances as a
standby commitment to purchase the borrower's notes.

RATINGS. An NRSRO's highest rating category is determined without regard for
sub-categories and gradations. For example, securities rated A-1 or A-1+ by
Standard & Poor's Ratings Group ("S&P"), Prime-1 by Moody's Investors Service,
Inc. ("Moody's"), or F-1 (+ or -) by Fitch Investors Service, Inc. ("Fitch") are
all considered rated in the highest short-term rating category. The Fund will
follow applicable regulations in determining whether a security rated by more
than one NRSRO can be treated as being in the highest short-term rating
category; currently, such securities must be rated by two NRSROs in their
highest rating category. 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. Generally, the Fund
will not treat credit enhanced securities as having been issued by the credit
enhancer for diversification purposes. However, under certain circumstances
applicable regulations may require the Fund to treat the securities 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.

values of the securities purchased may vary from the purchase prices.
Accordingly, the Fund may pay more/less than the market value of the securities
on the settlement date.

RESTRICTED AND ILLIQUID SECURITIES. The Fund may invest in restricted
securities. Restricted securities are any securities in which the Fund may
otherwise invest pursuant to its investment objective and policies but which are
subject to restrictions on resale under federal securities law. However, the
Fund will limit investments in illiquid securities, including certain restricted
securities not determined by the Trustees to be liquid, non-negotiable time
deposits, and repurchase agreements providing for settlement in more than seven
days after notice, to 10% of its net assets.

The Fund may invest in commercial paper issued in reliance on the exemption from
registration afforded by Section 4(2) of the Securities Act of 1933. Section
4(2) commercial paper is restricted as to disposition under federal securities
law, and is generally sold to institutional investors, such as the Fund, who
agree that they are purchasing the paper for investment purposes and not with a
view to public distribution. Any resale by the purchaser must be in an exempt
transaction. Section 4(2) commercial paper is normally resold to other
institutional investors like the Fund through or with the assistance of the
issuer or investment dealers who make a market in Section 4(2) commercial paper,
thus providing liquidity. The Fund believes that Section 4(2) commercial paper
and possibly certain other restricted securities which meet the criteria for
liquidity established by the Trustees of the Fund are quite liquid. The Fund
intends, therefore, to treat the restricted securities which meet the criteria
for liquidity established by the Trustees, including Section 4(2) commercial
paper, as determined by the Fund's investment adviser, as liquid and not subject
to the investment limitation applicable to illiquid securities. In addition,
because Section 4(2) commercial paper is liquid, the Fund intends to not subject
such paper to the limitation applicable to restricted securities.

CONCENTRATION OF INVESTMENTS. The Fund will invest 25% or more of its total
assets in commercial paper issued by finance companies. The finance companies in
which the Fund intends to invest can be divided into two categories, commercial
finance companies and consumer finance companies. Commercial finance companies
are principally engaged in lending to corporations or other businesses. Consumer
finance companies are primarily engaged in lending to individuals. Captive
finance companies or finance subsidiaries which exist to facilitate the
marketing and financial activities of their parent will, for purposes of
industry concentration, be classified in the industry of their parent's
corporation. Concentrating investments in any one industry may subject the Fund
to more risk than if it did not concentrate investments.

In addition, the Fund may invest 25% or more of the value of its total assets in
instruments 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.

INVESTMENT RISKS

ECDs, ETDs, Yankee CDs, CCPs and Europaper are subject to different risks than
domestic obligations of domestic banks or corporations. Examples of these risks
include international economic and political developments, foreign governmental
restrictions that may adversely affect the payment of principal or interest,
foreign withholding or other taxes on interest income, difficulties in obtaining
or enforcing a judgment against the issuing entity, and the possible impact of
interruptions in the flow of international currency transactions. Risks may also
exist for ECDs, ETDs, and Yankee CDs because the banks issuing these
instruments, or their domestic or foreign branches, are not necessarily subject
to the same regulatory requirements that apply to domestic banks, such as
reserve requirements, loan limitations, examinations, accounting, auditing,
recordkeeping, and the public availability of information. These factors will be
carefully considered by the Fund's adviser in selecting investments for the
Fund.

INVESTMENT LIMITATIONS

The Fund will not borrow money directly or through reverse repurchase agreements
(arrangements in which the Fund sells a money market instrument for a percentage
of its cash value with an agreement to buy it back on a set date) 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. For example, with limited exceptions, Rule 2a-7 prohibits
the investment of more than 5% of the Fund's total assets in the securities of
any one issuer, although the Fund's investment limitation only requires such 5%
diversification with respect to 75% of its assets. The Fund will invest more
than 5% of its assets in any one issuer only under the circumstances permitted
by Rule 2a-7. The Fund will also 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.

DISTRIBUTION OF SHARES

SHAREHOLDER SERVICES PLAN. The Fund has adopted a Shareholder Services Plan
(the "Services Plan") under which it may pay Federated Shareholder Services, an
affiliate of Federated Investors, an amount not exceeding .25 of 1% of the
average daily net asset value of the Institutional Shares to provide personal
services and/or maintenance of shareholder accounts to the Fund and its
shareholders. From time to time and for such periods as deemed appropriate, the
amount stated above may be reduced voluntarily.

ADMINISTRATION OF THE FUND

CUSTODIAN. State Street Bank and Trust Company, 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 & Donnelly,
Pittsburgh, PA, and Dickstein, Shapiro & Morin, L.L.P., Washington, DC.

INDEPENDENT PUBLIC ACCOUNTANTS. The independent public accountants for the Fund
are Arthur Andersen LLP, Pittsburgh, PA.

EXPENSES OF THE FUND AND INSTITUTIONAL SHARES

Holders of Institutional Shares pay their allocable portion of Fund and Trust
expenses.

NET ASSET VALUE
- --------------------------------------------------------------------------------

INVESTING IN THE FUND
- --------------------------------------------------------------------------------

SHARE PURCHASES

To make a purchase, open an account by calling Federated Securities Corp.
Information needed to establish the account will be taken by telephone.

BY WIRE. To purchase by Federal Reserve wire, call the Fund before 3:00 p.m.
(Eastern time) to place an order. The order is considered received immediately.
Payment by federal funds must be received before 3:00 p.m. (Eastern time) that
day. Federal funds should be wired as follows: Federated Services Company, c/o
State Street Bank and Trust Company, Boston, Massachusetts; Attention: EDGEWIRE;
For Credit to: Prime Obligations Fund--Institutional Shares; 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.

BY MAIL. To purchase by mail, send a check made payable to Prime Obligations
Fund--Institutional Shares to: Federated Services Company, P.O. Box 8602,
Boston, MA 02266-8602. Orders by mail are considered received when payment by
check is converted into federal funds. This is normally the next business day
after the check is received.

MINIMUM INVESTMENT REQUIRED

SUBACCOUNTING SERVICES

CERTIFICATES AND CONFIRMATIONS

Monthly confirmations are sent to report transactions such as all purchases and
redemptions as well as dividends paid during the month.

DIVIDENDS

CAPITAL GAINS

REDEEMING SHARES
- --------------------------------------------------------------------------------

BY MAIL

Shares may be redeemed by sending a written request to: Prime Obligations Fund,
P.O. Box 8602, Boston, MA 02266-8602. The written request should state: Prime
Obligations Fund--Institutional Shares; 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.

- a trust company or commercial bank whose deposits are insured by the Bank
Insurance Fund which is administered by the Federal Deposit Insurance
Corporation ("FDIC");

- a member of the New York, American, Boston, Midwest, or Pacific Stock
Exchanges;

- a savings bank or savings and loan association whose deposits are insured
by the Savings Association Insurance Fund, which is administered by the
FDIC; or

- any other "eligible guarantor institution," as defined in the Securities
Exchange Act of 1934.

The Fund does not accept signatures guaranteed by a notary public.

TELEPHONE REDEMPTION

circumstances, arrangements may be made with the distributor for same-day
payment of proceeds, without that day's dividend, for redemption requests
received before 3:00 p.m. (Eastern time).

ACCOUNTS WITH LOW BALANCES

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

As of October 28, 1994, Peoples Bank, Bridgeport, Connecticut owned 81.93% of
the voting securities of the Institutional Service Shares, and, therefore, may,
for certain purposes, be deemed to control the class and be able to affect the
outcome of certain matters presented for a vote of shareholders.

MASSACHUSETTS PARTNERSHIP LAW

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

PENNSYLVANIA CORPORATE AND PERSONAL PROPERTY TAXES

In the opinion of Houston, Houston, & Donnelly, counsel to the Trust:

- the Fund is not subject to Pennsylvania corporate or personal property
taxes; and

OTHER STATE AND LOCAL TAXES. Shareholders are urged to consult their own tax
advisers regarding the status of their accounts under state and local tax laws.

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

From time to time, the Fund advertises its yield and effective yield for
Institutional Shares.

From time to time, advertisements for the Fund may refer to ratings, rankings,
and other information in certain financial publications and/or compare its
performance to certain indices.

OTHER CLASSES OF SHARES
- --------------------------------------------------------------------------------

The Fund also offers the following class.

PRIME OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES
- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)

The following table has been audited by Arthur Andersen LLP, the Fund's
independent public accountants. Their report dated September 15, 1994, on the
Fund's financial statements for the year ended July 31, 1994, and on the
following table for the period presented, is included in the Annual Report,
which is incorporated by reference. This table should be read in conjunction
with the Fund's financial statements and notes thereto, which may be obtained
free of charge from the Fund.

<TABLE>
<CAPTION>
YEAR ENDED
JULY 31,
----------
1994*
- ------------------------------------------------------------ ----------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00
- ------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------
Net investment income 0.003
- ------------------------------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------------------------------
Dividends to shareholders from net investment income (0.003)
- ------------------------------------------------------------ ----------
NET ASSET VALUE, END OF PERIOD $1.00
- ------------------------------------------------------------ ----------
TOTAL RETURN** 0.30%
- ------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------
Expenses 0.34%(b)
- ------------------------------------------------------------
Net investment income 4.68%(b)
- ------------------------------------------------------------
Expense waiver/reimbursement (a) 0.14%(b)
- ------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------
Net assets, end of period (000 omitted) $9,387
- ------------------------------------------------------------
<FN>
* Reflects operations for the period from July 5, 1994 (date of initial public
offering) to July 31, 1994.
** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Computed on an annualized basis.
</TABLE>

ADDRESSES
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Prime Obligations Fund
Institutional Shares Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Distributor
Federated Securities Corp. Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Investment Adviser
Federated Management Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Custodian
State Street Bank and Trust Company P.O. Box 8602
Boston, MA 02266-8602
- -------------------------------------------------------------------------------------------

Legal Counsel
Houston, Houston & Donnelly 2510 Centre City Tower
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------

Legal Counsel
Dickstein, Shapiro & Morin, L.L.P. 2101 L Street, N.W.
Washington, DC 20037
- -------------------------------------------------------------------------------------------

Independent Public Accountants
Arthur Andersen LLP 2100 One PPG Place
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------
</TABLE>

- --------------------------------------------------------------------------------
PRIME OBLIGATIONS FUND
INSTITUTIONAL SHARES
PROSPECTUS

A Diversified Portfolio of
Money Market Obligations Trust,
an Open-End Management
Investment Company

Prospectus dated November 30,
1994

[LOGO] FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
60934N203
9110205A (11/94) [RECYCLED PAPER SYMBOL]

- --------------------------------------------------------------------------------
PRIME OBLIGATIONS FUND
(A PORTFOLIO OF MONEY MARKET OBLIGATIONS TRUST)
INSTITUTIONAL SERVICE SHARES
PROSPECTUS

The Institutional Service Shares of Prime Obligations Fund (the
"Fund") offered by this prospectus represent interests in a
diversified portfolio of Money Market Obligations Trust (the "Trust"),
an open-end management investment company (a mutual fund). The Fund
invests in money market securities to provide current income
consistent with stability of principal.

This prospectus contains the information you should read and know
before you invest in the Fund. Keep this prospectus for future
reference.

Prospectus dated November 30, 1994

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

TRUST INFORMATION 8
- ---------------------------------------------------
Management of the Trust 8
Distribution of Shares 8
Administration of the Fund 9
Expenses of the Fund and Institutional
Service Shares 9
NET ASSET VALUE 10
- ---------------------------------------------------
INVESTING IN THE FUND 10
- ---------------------------------------------------
Share Purchases 10
Minimum Investment Required 11
Subaccounting Services 11
Certificates and Confirmations 11
Dividends 11
Capital Gains 12

REDEEMING SHARES 12
- ---------------------------------------------------
By Mail 12
Telephone Redemption 13
Accounts with Low Balances 13

SHAREHOLDER INFORMATION 13
- ---------------------------------------------------
Voting Rights 13
Massachusetts Partnership Law 14

TAX INFORMATION 14
- ---------------------------------------------------
Federal Income Tax 14
Pennsylvania Corporate and Personal
Property Taxes 14

PERFORMANCE INFORMATION 15
- ---------------------------------------------------
OTHER CLASSES OF SHARES 15
- ---------------------------------------------------
FINANCIAL HIGHLIGHTS--INSTITUTIONAL
SHARES 16
- ---------------------------------------------------
ADDRESSES 17
- ---------------------------------------------------
</TABLE>

SUMMARY OF FUND EXPENSES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL SERVICE SHARES
SHAREHOLDER TRANSACTION EXPENSES
<S> <C> <C>
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 INSTITUTIONAL SERVICE SHARES OPERATING EXPENSES
(As a percentage of average net assets)
<S> <C> <C>
Management Fee (after waiver) (1)................................................................. 0.08%
12b-1 Fee......................................................................................... None
Total Other Expenses.............................................................................. 0.37%
Shareholder Services Fee............................................................. 0.25%
Total Institutional Service Shares Operating Expenses (2)................................. 0.45%
<FN>
(1) The management fee has been reduced to reflect the voluntary waiver of a
portion of the management fee. The adviser can terminate this voluntary
waiver at any time at its sole discretion. The maximum management fee is
0.20%.
(2) The Total Institutional Service Shares Operating Expenses in the table
above are based on expenses expected during the fiscal year ending July 31,
1995. The Total Institutional Service Shares Operating Expenses were 0.34%
for the fiscal year ended July 31, 1994, and were 0.48% absent the
voluntary waiver of a portion of the management fee.
</TABLE>

The purpose of this table is to assist an investor in understanding the various
costs and expenses that a shareholder of Institutional Service Shares 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 "Trust
Information." Wire-transferred redemptions of less than $5,000 may be subject to
additional fees.

THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

PRIME OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SERVICE SHARES
- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)

The following table has been audited by Arthur Andersen LLP, the Fund's
independent public accountants. Their report dated September 15, 1994, on the
Fund's financial statements for the year ended July 31, 1994, and on the
following table for the period presented, is included in the Annual Report,
which is incorporated by reference. This table should be read in conjunction
with the Fund's financial statements and notes thereto, which may be obtained
free of charge from the Fund.

<TABLE>
<CAPTION>
YEAR ENDED
JULY 31, 1994*
- ---------------------------------------------------------------------- --------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00
- ----------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------
Net investment income 0.003
- ----------------------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------------------
Dividends to shareholders from net investment income (0.003)
- ---------------------------------------------------------------------- --------------
NET ASSET VALUE, END OF PERIOD $1.00
- ---------------------------------------------------------------------- --------------
TOTAL RETURN** 0.30%
- ----------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------
Expenses 0.34%(b)
- ----------------------------------------------------------------------
Net investment income 4.68%(b)
- ----------------------------------------------------------------------
Expense waiver/reimbursement (a) 0.14%(b)
- ----------------------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------------------
Net assets, end of period (000 omitted) $9,387
- ----------------------------------------------------------------------
<FN>

* Reflects operations for the period from July 5, 1994 (date of initial public
offering) to July 31, 1994.

** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(b) Computed on an annualized basis.
</TABLE>

GENERAL INFORMATION
- --------------------------------------------------------------------------------

The Trust was established as a Massachusetts business trust under a Declaration
of Trust dated October 3, 1988. The Declaration of Trust permits the Trust to
offer separate series of shares of beneficial interest representing interests in
separate portfolios of securities. The shares in any one portfolio may be
offered in separate classes. With respect to this Fund, as of the date of this
prospectus, the Trustees have established two classes of shares known as
Institutional Service Shares and Institutional Shares. This prospectus relates
only to Institutional Service Shares of the Fund, which are designed primarily
for financial institutions as a convenient means of accumulating an interest in
a professionally managed, diversified portfolio investing primarily in
short-term money market securities. A minimum initial investment of $25,000 is
required.

The Fund attempts to stabilize the value of a share at $1.00. Shares are
currently sold and redeemed at that price.

INVESTMENT INFORMATION
- --------------------------------------------------------------------------------

INVESTMENT OBJECTIVE

INVESTMENT POLICIES

ACCEPTABLE INVESTMENTS. The Fund invests in high quality money market
instruments that are either rated in the highest short-term rating category by
one or more nationally recognized statistical

rating organizations ("NRSROs") or are of comparable quality to securities
having such ratings. Examples of these instruments include, but are not limited
to:

- domestic issues of corporate debt obligations, including variable rate
demand notes;

- commercial paper (including Canadian Commercial Paper and Europaper);

- certificates of deposit, demand and time deposits, bankers' acceptances
and other instruments of domestic and foreign banks and other deposit
institutions ("Bank Instruments");

- short-term credit facilities;

- asset-backed securities;

- obligations issued or guaranteed as to payment of principal and interest
by the U.S. government or one of its agencies or instrumentalities; and

- other money market instruments.

The Fund invests only in instruments denominated and payable in U.S. dollars.

SHORT-TERM CREDIT FACILITIES. The Fund may enter into, or acquire
participations in, short-term borrowing arrangements with corporations,
consisting of either a short-term revolving

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. Generally, the Fund
will not treat credit enhanced securities as having been issued by the credit
enhancer for diversification purposes. However, under certain circumstances
applicable regulations may require the Fund to treat the securities 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.

values of the securities purchased may vary from the purchase prices.
Accordingly, the Fund may pay more/less than the market value of the securities
on the settlement date.

INVESTMENT RISKS

INVESTMENT LIMITATIONS

The Fund will not borrow money directly or through reverse repurchase agreements
(arrangements in which the Fund sells a money market instrument for a percentage
of its cash value with an agreement to buy it back on a set date) 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

TRUST INFORMATION
- --------------------------------------------------------------------------------

MANAGEMENT OF THE TRUST

DISTRIBUTION OF SHARES

SHAREHOLDER SERVICES PLAN. The Fund has adopted a Shareholder Services Plan
(the "Services Plan") under which it may pay Federated Shareholder Services, an
affiliate of Federated Investors, an

amount not exceeding .25 of 1% of the average daily net asset value of the
Institutional Service Shares to provide personal services and/or maintenance of
shareholder accounts to the Fund and its shareholders. From time to time and for
such periods as deemed appropriate, the amount stated above may be reduced
voluntarily.

ADMINISTRATION OF THE FUND

CUSTODIAN. State Street Bank and Trust Company, 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 & Donnelly,
Pittsburgh, PA, and Dickstein, Shapiro & Morin, L.L.P., Washington, DC.

INDEPENDENT PUBLIC ACCOUNTANTS. The independent public accountants for the Fund
are Arthur Andersen LLP, Pittsburgh, PA.

EXPENSES OF THE FUND AND INSTITUTIONAL SERVICE SHARES

Holders of Institutional Service Shares pay their allocable portion of Fund and
Trust expenses.

At present, the only expenses allocated to the Institutional Service Shares as a
class are expenses under the Fund's Services Plan which relate to Institutional
Service Shares. However, the Board of Trustees reserves the right to allocate
certain other expenses to holders of Institutional Service Shares as it deems
appropriate ("class expenses"). In any case, class expenses would be limited to:
transfer agent fees as identified by the transfer agent as attributable to
holders of Institutional Service Shares; printing and postage expenses related
to preparing and distributing materials such as shareholder reports,
prospectuses and proxies to current shareholders; registration fees paid to the
Securities and Exchange Commission and registration fees paid to state
securities commissions; expenses related to administrative personnel and
services as required to support holders of Institutional Service Shares; legal
fees relating solely to Institutional Service Shares; and Trustees' fees
incurred as a result of issues relating solely to Institutional Service Shares.

NET ASSET VALUE
- --------------------------------------------------------------------------------

INVESTING IN THE FUND
- --------------------------------------------------------------------------------

SHARE PURCHASES

To make a purchase, open an account by calling Federated Securities Corp.
Information needed to establish the account will be taken by telephone.

BY WIRE. To purchase by Federal Reserve wire, call the Fund before 3:00 p.m.
(Eastern time) to place an order. The order is considered received immediately.
Payment by federal funds must be received before 3:00 p.m. (Eastern time) that
day. Federal funds should be wired as follows: Federated Services Company, c/o
State Street Bank and Trust Company, Boston, Massachusetts; Attention: EDGEWIRE;
For Credit to: Prime Obligations Fund--Institutional Service Shares; 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.

BY MAIL. To purchase by mail, send a check made payable to Prime Obligations
Fund--Institutional Service Shares to: Federated Services Company, P.O. Box
8602, Boston, MA 02266-8602. Orders by mail are considered received when payment
by check is converted into federal funds. This is normally the next business day
after the check is received.

MINIMUM INVESTMENT REQUIRED

SUBACCOUNTING SERVICES

CERTIFICATES AND CONFIRMATIONS

Monthly confirmations are sent to report transactions such as all purchases and
redemptions as well as dividends paid during the month.

DIVIDENDS

CAPITAL GAINS

REDEEMING SHARES
- --------------------------------------------------------------------------------

BY MAIL

Shares may be redeemed by sending a written request to: Prime Obligations Fund,
P.O. Box 8602, Boston, MA 02266-8602. The written request should state: Prime
Obligations Fund--Institutional Service Shares; 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.

- a trust company or commercial bank whose deposits are insured by the Bank
Insurance Fund which is administered by the Federal Deposit Insurance
Corporation ("FDIC");

- a member of the New York, American, Boston, Midwest, or Pacific Stock
Exchanges;

- a savings bank or savings and loan association whose deposits are insured
by the Savings Association Insurance Fund, which is administered by the
FDIC; or

- any other "eligible guarantor institution," as defined in the Securities
Exchange Act of 1934.

The Fund does not accept signatures guaranteed by a notary public.

TELEPHONE REDEMPTION

ACCOUNTS WITH LOW BALANCES

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

MASSACHUSETTS PARTNERSHIP LAW

TAX INFORMATION
- --------------------------------------------------------------------------------

FEDERAL INCOME TAX

PENNSYLVANIA CORPORATE AND PERSONAL PROPERTY TAXES

In the opinion of Houston, Houston, & Donnelly, counsel to the Trust:

- the Fund is not subject to Pennsylvania corporate or personal property
taxes; and

OTHER STATE AND LOCAL TAXES. Shareholders are urged to consult their own tax
advisers regarding the status of their accounts under state and local tax laws.

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

From time to time, the Fund advertises its yield and effective yield for
Institutional Service Shares.

From time to time, advertisements for the Fund may refer to ratings, rankings,
and other information in certain financial publications and/or compare its
performance to certain indices.

OTHER CLASSES OF SHARES
- --------------------------------------------------------------------------------

The Fund also offers the following class.

PRIME OBLIGATIONS FUND
FINANCIAL HIGHLIGHTS--INSTITUTIONAL SHARES
- --------------------------------------------------------------------------------

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
-----------------------------------------------------
1994 1993 1992 1991 1990*
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------
Net investment income 0.03 0.03 0.05 0.07 0.03
- ------------------------------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------------------------------
Dividends to shareholders from net investment income (0.03) (0.03) (0.05) (0.07) (0.03)
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------ --------- --------- --------- --------- ---------
TOTAL RETURN** 3.47% 3.25% 4.74% 7.30% 2.89%
- ------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------
Expenses 0.20% 0.20% 0.20% 0.20% 0.20%(b)
- ------------------------------------------------------------
Net investment income 3.47% 3.20% 4.53% 6.54% 8.21%(b)
- ------------------------------------------------------------
Expense waiver/ reimbursement (a) 0.14% 0.09% 0.10% 0.24% 0.68%(b)
- ------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------
Net assets, end of period (000 omitted) $1,250,979 $1,098,159 $917,418 $473,593 $34,777
- ------------------------------------------------------------
<FN>

* Reflects operations for the period from March 26, 1990 (date of initial
public investment) to July 31, 1990.

** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(b) Computed on an annualized basis.
</TABLE>

ADDRESSES
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
Prime Obligations Fund
Institutional Service Shares Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Distributor
Federated Securities Corp. Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Investment Adviser
Federated Management Federated Investors Tower
Pittsburgh, PA 15222-3779
- -------------------------------------------------------------------------------------------

Custodian
State Street Bank and Trust Company P.O. Box 8602
Boston, MA 02266-8602
- -------------------------------------------------------------------------------------------

Legal Counsel
Houston, Houston & Donnelly 2510 Centre City Tower
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------

Legal Counsel
Dickstein, Shapiro & Morin, L.L.P. 2101 L Street, N.W.
Washington, DC 20037
- -------------------------------------------------------------------------------------------

Independent Public Accountants
Arthur Andersen LLP 2100 One PPG Place
Pittsburgh, PA 15222
- -------------------------------------------------------------------------------------------
</TABLE>

- --------------------------------------------------------------------------------
PRIME OBLIGATIONS FUND
INSTITUTIONAL SERVICE SHARES
PROSPECTUS

A Diversified Portfolio of
Money Market Obligations Trust,
an Open-End Management
Investment Company
Prospectus dated November 30,
1994

[LOGO] FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
60934N708
9110204A-SS (11/94) [RECYCLED PAPER SYMBOL]