1933 Act File No. 33-36729
1940 Act File No. 811-6165
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 X
Pre-Effective Amendment No.
Post-Effective Amendment No. 15 X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 X
Amendment No. 16 X
MUNICIPAL SECURITIES INCOME TRUST
(Exact Name of Registrant as Specified in Charter)
Federated Investors Tower, Pittsburgh, Pennsylvania 15222-3779
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
John W. McGonigle, Esquire,
Federated Investors Tower,
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
X immediately upon filing pursuant to paragraph (b)
on _________________ pursuant to paragraph (b)
60 days after filing pursuant to paragraph (a)
on pursuant to paragraph (a) of Rule 485.
Registrant has filed with the Securities and Exchange Commission a
declaration pursuant to Rule 24f-2 under the Investment Company Act of
1940, and:
X filed the Notice required by that Rule on October 11, 1993; or
intends to file the Notice required by that Rule on or about
____________; or
during the most recent fiscal year did not sell any securities pursuant
to Rule 24f-2 under the Investment Company Act of 1940, and, pursuant to
Rule 24f-2(b)(2), need not file the Notice.
Copies to:
Thomas J. Donnelly, Esquire Charles H. Morin, Esquire
Houston, Houston & Donnelly Dickstein, Shapiro & Morin
2510 Centre City Tower 2101 L Street, N.W.
650 Smithfield Street Washington, D.C. 20037
Pittsburgh, Pennsylvania 15222
CROSS-REFERENCE SHEET
This amendment to the Registration Statement of Municipal Securities
Income Trust , which is comprised of ten portfolios: (1) Pennsylvania
Municipal Income Fund, which consists of three classes, (a) Investment
Shares, (b) Trust Shares, and (c) Income Shares, (2) Ohio Municipal Income
Fund, which consists of two classes, (a) Fortress Shares and (b) Trust
Shares, (3) Michigan Municipal Income Fund, (4) California Municipal Income
Fund (Fortress Shares), (5) New York Municipal Income Fund (Fortress
Shares), (6) Florida Municipal Income Fund, (7) New Jersey Municipal Income
Fund, (8) Texas Municipal Income Fund, (9) Maryland Municipal Income Fund,
and (10) Virginia Municipal Income Fund, relates only to portfolios (9) and
(10) and is comprised of the following:
PART A. INFORMATION REQUIRED IN A PROSPECTUS.
Prospectus Heading
(Rule 404(c) Cross Reference)
Item 1. Cover Page (1-10) Cover Page.
Item 2. Synopsis (1-10) Summary of Fund Expenses;
(1-8)
Financial Highlights.
Item 3. Condensed Financial
Information (1-10) Performance Information.
Item 4. General Description of
Information; Investment Information; Investment
Objective, Investment Policies,
Investment Limitations; Investment
Risks; (1) Pennsylvania Municipal
Securities; (2) Ohio Municipal
Securities; (3) Michigan Municipal
Securities; (4) California Municipal
Securities; (5) New York Municipal
Securities; (6) Florida Municipal
Securities; (7) New Jersey Municipal
Securities; (8) Texas Municipal
Securities; (9) Maryland Municipal
Securities; (10) Virginia Municipal
Securities;(1-10) Non-
Diversification.
Item 5. Management of the Fund (1) Trust Information; (2-10)
Municipal Securities Income Trust
Information; (1) Management of the
Trust; (2-10) Management of
Municipal
Securities Income Trust; (1a)
Distribution of Investment Shares;
(1b, 2b) Distribution of Trust
Shares;
(1c) Distribution of Income Shares;
(3, 6-10) Distribution of Fund
Shares;
(2a, 4, 5) Distribution of Fortress
Shares; (1-5, 9, 10)
Administration of
the Fund; (1a) Expenses of the Fund
and Investment Shares; (1b, 2b)
Expenses of the Fund and Trust
Shares;
(1c) Expenses of the Fund and Income
Shares; (2a, 4, 5) Expenses of the
Fund and Fortress Shares; (3, 6-10)
Expenses of the Fund.
Item 6. Capital Stock and Other
Securities (1-10) Dividends and Distributions;
Shareholder Information; Voting
Rights; Massachusetts Partnership
Law;
Tax Information; Federal Income Tax;
Other State and Local Taxes;
(1) Pennsylvania Taxes; (2) State of
Ohio Income Taxes; (3) Michigan Tax
Considerations; (4) State of
California Income Taxes; (5) New
York
State and Municipal Taxation; (6)
Florida Intangibles Tax; Florida
State
and Municipal Taxation; (7) New
Jersey
State and Municipal Taxation; (8)
Texas State and Municipal Taxation;
(9) Maryland State and Municipal
Taxation; (10) Virginia Taxes;
(1, 2)
Other Classes of Shares.
Item 7. Purchase of Securities
Being Offered (1-10) Net Asset Value; (1a)
Investing
in Investment Shares; (1b, 2b)
Investing in Trust Shares; (1c)
Investing in Income Shares; (2a,
4, 5)
Investing in Fortress Shares; (3,
6-10) Investing in the Fund; (1-10)
Share Purchases; Minimum Investment
Required; What Shares Cost;
Certificates and Confirmations; (1)
Conversion to Federal Funds;
Subaccounting Services; (2a, 4, 5)
Eliminating the Sales Charge; (3)
Reducing the Sales Charge, (1a,
3, 4,
5-10) Systematic Investment Program.
Item 8. Redemption or Repurchase (1a) Redeeming Investment Shares;
(1b,
2b); Redeeming Trust Shares; (1c)
Redeeming Income Shares; (2a, 4, 5)
Redeeming Fortress Shares; (3, 6-10)
Redeeming Shares; (1a, 1c, 2a,
3-10)
Through a Financial Institution;
(1b,
2b) By Telephone; By Mail; (1a, 1c,
2a, 3) Directly from the Fund;
(4-10)
Directly by Mail; (1a, 2a, 3-5)
Redemption Fee; (2a, 4-10) Exchanges
for Shares of Other Funds; (1c,
6-10)
Contingent Deferred Sales Charge;
Elimination of Contingent Deferred
Sales Charge; (1-10) Redemption
Before Purchase Instruments Clear;
Accounts with Low Balances; (1a, 1c,
2a, 3-10) Systematic Withdrawal
Program; (1a, 1c, 2a, 3, 4, 5)
Exchange Privilege; (1a, 1c, 2a, 3)
Making an Exchange; (6-10)
Exchanges
for Shares of Other Funds; (1c,
6-10)
Reinvestment Privilege.
Item 9. Pending Legal Proceedings None.
PART B. INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION.
Item 10. Cover Page (1-10) Cover Page.
Item 11. Table of Contents (1-10) Table of Contents.
Item 12. General Information and
History (1-10) General Information About the
Fund.
Item 13. Investment Objectives
and Policies (1-10) Investment Objectives and
Policies.
Item 14. Management of the Fund (1) Trust Management; (2-10)
Management of Municipal Securities
Income Trust.
Item 15. Control Persons and Principal Holders of
Securities Not Applicable.
Item 16. Investment Advisory and Other
Services (1-10) Investment Advisory Services,
Administrative Services.
Item 17. Brokerage Allocation (1-10) Brokerage Transactions.
Item 18. Capital Stock and Other
Securities Not Applicable.
Item 19. Purchase, Redemption and
Pricing of Securities
Being Offered (1, 2, 3, 6-10) Purchasing
Shares; (4,
5) Purchasing Fortress Shares; (1a,
1c, 2a, 4, 5-10) Distribution Plan;
(1-10) Determining Net Asset Value;
(1, 2, 3, 6-10) Redeeming Shares;
(4,
5) Redeeming Fortress Shares;
(2a, 4,
5) Exchange Privilege.
Item 20. Tax Status (1-10) Tax Status.
Item 21. Underwriters (1,2) Administrative Arrangements.
Item 22. Calculation of Performance
Data (1-10) Total Return; Yield;
Tax-Equivalent Yield; Performance
Comparisons.
Item 23. Financial Statements (1-10) Filed in Part A.
- --------------------------------------------------------------------------------
VIRGINIA
- --------------------------------------------------------------------------------
MUNICIPAL
- --------------------------------------------------------------------------------
INCOME FUND
- --------------------------------------------------------------------------------
(A Portfolio of Municipal Securities Income Trust)
SUPPLEMENT TO PROSPECTUS
DATED AUGUST 31, 1993
FEDERATED SECURITIES CORP.
(LOGO)
Distributor
4010714A (2/94)
February 28, 1994
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
A. Please revise the last sentence of the fourth paragraph on the cover page of
the prospectus to read as follows:
"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."
B. Please insert the following "Financial Highlights" table as page 2 following
the "Summary of Fund Expenses" and before the section entitled "General
Information." In addition, please add the heading "Financial Highlights" to
the Table of Contents on page I following the heading "Summary of Fund
Expenses."
VIRGINIA MUNICIPAL INCOME FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
AUGUST 31, 1994*
- --------------------------------------------------------------------------------- -----------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
- ---------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------------
Net investment income 0.14
- ---------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.07
- --------------------------------------------------------------------------------- ------------
Total from investment operations 0.21
- --------------------------------------------------------------------------------- ------------
LESS DISTRIBUTIONS
- ---------------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.14)
- ---------------------------------------------------------------------------------
Distributions in excess of net investment income (Note 3) (0.02)
- --------------------------------------------------------------------------------- ------------
TOTAL DISTRIBUTIONS (0.16)
- --------------------------------------------------------------------------------- ------------
NET ASSET VALUE, END OF PERIOD $ 10.05
- --------------------------------------------------------------------------------- ------------
TOTAL RETURN** 2.10%
- ---------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ---------------------------------------------------------------------------------
Expenses 0.75%(a)
- ---------------------------------------------------------------------------------
Net investment income 4.59%(a)
- ---------------------------------------------------------------------------------
Expense waiver/reimbursements (b) 12.11%(a)
- ---------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------
Net assets, end of period (000 omitted) 2,193
- ---------------------------------------------------------------------------------
Portfolio turnover rate 0%
- ---------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from September 1, 1993 (date of initial
public investment) to December 31, 1993.
** Based on net asset value which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above (Note 5).
(See Notes which are an integral part of the Financial Statements)
C. Please revise the section of the prospectus entitled "Legal Counsel" on page
16, to read as follows:
"Legal Counsel
Legal counsel is provided by Houston, Houston & Donnelly, 2510 Centre City
Tower, Pittsburgh, Pennsylvania, and Dickstein Shapiro & Morin, 2101 L.
Street, N.W., Washington, D.C."
D. Please revise the section of the prospectus entitled "Virginia Taxes" on page
19, to read in its entirety as follows:
"VIRGINIA TAXES
Under existing Virginia law, shareholders of the Fund will not be subject to
individual or corporate Virginia income taxes on distributions received from the
Fund to the extent that such distributions are attributable to interest earned
on (1) obligations issued by or on behalf of the Commonwealth of Virginia or any
political subdivision thereof; or (2) obligations issued by a territory or
possession of the United States or any political subdivision thereof which
federal law exempts from state income taxes. Distributions, if any, derived from
capital gains or other sources generally will be taxable for Virginia income tax
purposes to shareholders of the Fund who are subject to Virginia income tax."
E. Please insert the following financial statements at the end of the prospectus
beginning on page 21. In addition, please add the heading "Financial
Statements" to the Table of Contents on page I, immediately before
"Addresses."
VIRGINIA MUNICIPAL INCOME FUND
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- --------- ----------------------------------------------------------- -------- ----------
<C> <S> <C> <C>
SHORT-TERM MUNICIPAL SECURITIES--4.5%
- ------------------------------------------------------------------------
VIRGINIA--100%
-----------------------------------------------------------
$100,000 Peninsula Port Authority of Virginia, Daily VRDNs, (Kinyo
Virginia, Inc.)/(Industrial Bank of Japan Ltd., Tokyo LOC)/
(Subject to AMT) Aa2 $ 100,000
----------------------------------------------------------- ----------
TOTAL SHORT-TERM MUNICIPAL SECURITIES (IDENTIFIED COST
$100,000) 100,000
----------------------------------------------------------- ----------
LONG-TERM MUNICIPAL SECURITIES--98.6%
- ------------------------------------------------------------------------
VIRGINIA--100%
-----------------------------------------------------------
150,000 Arlington County, VA, 5.30% IDA Hospital Facilities Revenue
Bonds, (Arlington Hospital)/(Original Issue Yield: 5.47%),
9/1/2015 A1 145,662
-----------------------------------------------------------
100,000 Arlington County, VA, 5.00% IDA Hospital Facilities Revenue
Refunding Bonds, (Series 1993)/(Arlington
Hospital)/(Original Issue Yield: 5.53%), 9/1/2021 A1 91,602
-----------------------------------------------------------
100,000 Augusta County, VA, 5.125% IDA Hospital Revenue Bonds,
(Augusta Hospital Corp.)/(AMBAC Insured)/(Original Issue
Yield: 5.60%), 9/1/2021 AAA 96,065
-----------------------------------------------------------
100,000 Fairfax County, VA, 5.25% IDA Hospital Revenue Refunding
Bonds, (Inova Health System)/(Original Issue Yield: 5.35%),
8/15/2019 AA- 96,979
-----------------------------------------------------------
</TABLE>
VIRGINIA MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- --------- ----------------------------------------------------------- -------- ----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------
VIRGINIA--CONTINUED
-----------------------------------------------------------
$100,000 Hampton Roads, VA, 5.00% Sanitation District Wastewater
Refunding and Capital Improvement Revenue Bonds, (Series
1993)/(Original Issue Yield: 5.48%), 10/1/2023 AA $ 95,238
-----------------------------------------------------------
100,000 Harrisburg, VA, 5.25% IDA Hospital Revenue Bonds,
(Rockingham Memorial Hospital)/(MBIA Insured)/(Original
Issue Yield: 5.85%), 12/1/2022 AAA 98,675
-----------------------------------------------------------
100,000 Isle of Wight County, VA, 5.20% GO Unlimited School
Improvement Bonds, (Original Issue Yield: 5.30%), 8/1/2010 A 100,658
-----------------------------------------------------------
100,000 Portsmouth, VA, 5.50% UT GO Bonds (Original Issue Yield:
5.75%), 8/1/2013 AA- 101,970
-----------------------------------------------------------
200,000 Prince William County, VA, 5.625% IDA Hospital Revenue
Refunding Bonds, (Prince William Hospital)/(Original Issue
Yield: 5.75%), 4/1/2012 A 203,398
-----------------------------------------------------------
100,000 Prince William County, VA, Service Authority, 5.00% Water
and Sewer System Revenue Refunding Bonds, (FGIC Insured)/
(Original Issue Yield: 5.25%), 7/1/2021 AAA 96,242
-----------------------------------------------------------
100,000 Richmond, VA, 5.50% GO Public Improvement Bonds, (Series
B)/(Original Issue Yield: 5.72%), 7/15/2023 AA 100,080
-----------------------------------------------------------
100,000 Rivanna, VA, Water and Sewer Authority, 4.875% Regional
Water and Sewer System Refunding Revenue Bonds, (Original
Issue Yield: 5.13%), 10/1/2018 A+ 91,468
-----------------------------------------------------------
100,000 Roanoke County, VA, 5.00% Water System Revenue Refunding
Bonds, (FGIC Insured)/(Original Issue Yield: 5.267%),
7/1/2021 AAA 96,242
-----------------------------------------------------------
100,000 Roanoke, VA, 5.25% IDA Hospital Revenue Bonds, (Series A)/
(Roanoke Memorial Hospital)/(MBIA Insured)/(Original Issue
Yield: 5.65%), 7/1/2025 AAA 98,037
-----------------------------------------------------------
100,000 Upper Occoquan, VA Sewage Authority, 5.00% Regional Sewage
System Refunding Revenue Bonds, (Series 1993)/(FGIC
Insured)/(Original Issue Yield: 5.41%), 7/1/2021 AAA 95,542
-----------------------------------------------------------
</TABLE>
VIRGINIA MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- --------- ----------------------------------------------------------- -------- ----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------
VIRGINIA--CONTINUED
-----------------------------------------------------------
$100,000 Virginia College Building Authority, 5.75% Revenue Bonds
(Hampton University), 4/1/2014 A $ 101,544
-----------------------------------------------------------
150,000 Virginia Education Loan Authority, 6.15% Refunding Bonds,
(Series G)/(Subject to AMT), 9/1/2009 A 156,008
-----------------------------------------------------------
100,000 Virginia Housing Development Authority, 5.30% Mortgage
Revenue Bonds, (Series 1992 C), 1/1/2015 A+ 97,891
-----------------------------------------------------------
100,000 Virginia Resources Authority, 5.125% Water and Sewer System
Revenue Bonds, (Buchanon County Public Sewer Authority)/
(Original Issue Yield: 5.30%), 5/1/2020 AA 97,257
-----------------------------------------------------------
100,000 Virginia Transportation Board, 5.50% Transportation
Contract Revenue Bonds, (US Route 58 Corridor)/(Original
Issue Yield: 5.75%), 5/15/2018 AA 100,750
----------------------------------------------------------- ----------
TOTAL LONG-TERM MUNICIPAL SECURITIES
(IDENTIFIED COST $2,166,264) 2,161,308
----------------------------------------------------------- ----------
TOTAL MUNICIPAL SECURITIES (IDENTIFIED COST $2,266,264) $2,261,308+
----------------------------------------------------------- ----------
</TABLE>
* See Notes to Portfolio of Investments on pages 6 and 7.
+ The cost of investments for federal tax purposes amounts to $2,266,264. The
net unrealized depreciation of investments on a federal tax basis amounts to
$4,956, which is comprised of $9,772 appreciation and $14,728 depreciation at
December 31, 1993.
Note: The categories of investments are shown as a percentage of net assets
($2,192,622) at
December 31, 1993.
VIRGINIA MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
The following abbreviations are used in this portfolio:
<TABLE>
<S> <C>
AMBAC --American Municipal Bond Assurance Corporation
AMT --Alternative Minimum Tax
FGIC --Financial Guaranty Insurance Co.
GO --General Obligation
IDA --Industrial Development Authority
LOC --Letter of Credit
MBIA --Municipal Bond Investors Assurance
VRDNs --Variable Rate Demand Note
</TABLE>
(See Notes which are an integral part of the Financial Statements)
VIRGINIA MUNICIPAL INCOME FUND
NOTES TO PORTFOLIO OF INVESTMENTS
- --------------------------------------------------------------------------------
The municipal bonds rated by Moody's Investors Services, Inc. ("Moody's") in
which the Fund may invest are Aaa, Aa, A and Baa. Municipal bonds rated Aaa are
judged to be of the "best quality." The rating of Aa is assigned to municipal
bonds which are of "high quality by all standards," but as to which margins of
protection or other elements make long-term risks appear somewhat larger than
Aaa-rated municipal bonds. The Aaa and Aa-rated municipal bonds comprise what
are generally known as "high-grade bonds." Municipal bonds which are rated A by
Moody's possess many favorable investment attributes and are considered "upper
medium grade obligations." Factors giving security to principal and interest of
A-rated municipal bonds are considered adequate, but elements may be present
which suggest a susceptibility to impairment sometime in the future. Often the
protection of interest and principal payments may be very moderate and thereby
not well safeguarded during both good and bad times over the future. Uncertainty
of position characterizes bonds in this class. Municipal bonds which are rated
Baa by Moody's are considered medium grade obligations, i.e., they are neither
highly protected nor poorly secured. Interest payments and principal security
appear adequate for the present but certain protective elements may be lacking
or may be characteristically unreliable over any great length of time. Such
bonds lack outstanding investment characteristics and in fact have speculative
characteristics as well. The letter ratings carry numerical modifiers with 1
indicating the higher end of the rating category, 2 indicating the mid-range and
3 indicating the lower end of the rating category.
Moody's highest rating for state and municipal short-term securities is
MIG1/VMIG1. Short-term municipal securities rated MIG1/VMIG1 are the best
quality. They have strong protection from established cash flows of funds for
their servicing or have established a broad-based access to the market for
refinancing or both. The VMIG1 rating denotes that the security has a variable
rate and is payable on demand. Moody's rating of MIG2/VMIG2 denotes high quality
margins of protection which are ample although not so large as in the preceding
group.
Standard & Poor's Corporation's ("Standard & Poor's") highest rating for
municipal commercial paper is A-1. Short-term municipal commercial paper rated
A-1 is of the best quality. The capacity for timely payment on issues with an
A-2 designation is strong. The rating Prime-1 (P-1) is the highest municipal
commercial paper rating assigned by Moody's. Issues rated Prime-2 (P-2) have a
strong capacity for repayment of short-term promissory obligations.
The municipal bonds rated by Standard & Poor's in which the Fund may invest are
AAA, AA, A and BBB. Municipal bonds rated AAA are "obligations of the highest
quality." The rating AA is accorded issues with investment characteristics "only
slightly less marked than those of the prime quality issues." The category of A
describes "the third strongest capacity for payment of debt service." Principal
and interest payments on bonds in this category are regarded as safe. It differs
from the two higher ratings because with respect to general obligation bonds
there is some weakness, either in the local economic base, in debt burden, in
the balance between revenues and expenditures, or in quality of management.
Under certain adverse circumstances, any one such weakness might impair the
ability of
VIRGINIA MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
the issuer to meet debt obligations at some future date. With respect to revenue
bonds, debt service coverage is good, but not exceptional. Stability of the
pledge revenues could show some variations because of increased competition or
economic influences on revenues. Basic security provisions, while satisfactory,
are less stringent. Municipal bonds which are rated BBB by Standard & Poor's are
regarded as having an adequate capacity to pay interest and repay principal.
Whereas it normally exhibits adequate protection on parameters, adverse economic
conditions or changing circumstances are more likely to lead to a weakened
capacity to pay interest and repay principal for debt in this category than in
higher rated categories. These ratings may be modified by the addition of a plus
or minus sign to show relative standing within the major rating categories.
Standard & Poor's rating SP-1 is assigned to short-term municipal obligations
with a very strong or strong capacity to pay principal and interest. Those
issues determined to possess overwhelming safety characteristics will be given a
plus (+) designation. The SP-2 rating denotes a satisfactory capacity to pay
principal and interest.
The municipal bonds rated by Fitch Investors Service, Inc. ("Fitch") in which
the Fund may invest are AAA, AA, A and BBB. Municipal bonds rated AAA are judged
to be of the "highest credit quality." The rating of AA is considered to be of
investment grade and of very high quality. The category of A describes "the
third strongest investment grade and high credit quality." Bonds rated BBB by
Fitch are considered to be investment grade and of satisfactory credit quality.
These ratings may be modified by the addition of a plus or a minus sign (with
the exception of AAA), to show relative standing within the major rating
categories.
Fitch's highest rating for short-term municipal obligations is F-1. Notes rated
F-1 have a strong degree of assurance of timely payment. Those notes rated F-2
reflect a degree of assurance for timely payment only slightly less in degree
than the highest category. A plus (+) designation may be used to indicate
relative standing within a rating class.
NR indicates the bonds are not currently rated by Moody's, Fitch or Standard &
Poor's. However, management considers them to be of equivalent quality to the
rated securities it purchases.
Bonds for which the security depends upon the completion of some act or the
fulfillment of some condition are rated conditionally.
VIRGINIA MUNICIPAL INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Investments in securities, at value (Note 2A)
(identified and tax cost; $2,266,264) $2,261,308
- ---------------------------------------------------------------------------------
Receivable for Fund shares sold 293,661
- ---------------------------------------------------------------------------------
Interest receivable 33,106
- ---------------------------------------------------------------------------------
Receivable from adviser 17,000
- --------------------------------------------------------------------------------- ----------
Total assets 2,605,075
- ---------------------------------------------------------------------------------
LIABILITIES:
- ----------------------------------------------------------------------
Payable for investments purchased $254,020
- ----------------------------------------------------------------------
Payable for Fund shares redeemed 103,000
- ----------------------------------------------------------------------
Dividends payable 6,420
- ----------------------------------------------------------------------
Payable to bank 5,093
- ----------------------------------------------------------------------
Payable to distributor 2,024
- ----------------------------------------------------------------------
Accrued expenses 41,896
- ---------------------------------------------------------------------- --------
Total liabilities 412,453
- --------------------------------------------------------------------------------- ----------
NET ASSETS for 218,063 shares of beneficial interest outstanding $2,192,662
- --------------------------------------------------------------------------------- ----------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------
Paid-in capital $2,197,578
- ---------------------------------------------------------------------------------
Net unrealized depreciation on investments (4,956)
- --------------------------------------------------------------------------------- ----------
Total $2,192,622
- --------------------------------------------------------------------------------- ----------
NET ASSET VALUE and Offering Price Per Share
(net assets of $2,192,622 / 218,063 shares of beneficial interest outstanding) $10.05
- --------------------------------------------------------------------------------- ----------
REDEMPTION PROCEEDS Per Share: (97/100 of $10.05)* $9.75
- --------------------------------------------------------------------------------- ----------
</TABLE>
* See "Contingent Deferred Sales Charge" in the prospectus.
(See Notes which are an integral part of the Financial Statements)
VIRGINIA MUNICIPAL INCOME FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED DECEMBER 31, 1993*
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- --------------------------------------------------------------------------------------
Interest income (Note 2B) $23,254
- --------------------------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------------------------
Investment advisory fee (Note 5) $ 1,742
- --------------------------------------------------------------------------
Distribution services fees (Note 5) 3,266
- --------------------------------------------------------------------------
Custodian, transfer agent and dividend disbursing agent fees 21,852
- --------------------------------------------------------------------------
Legal fees 2,500
- --------------------------------------------------------------------------
Administrative personnel and services fees (Note 5) 19,536
- --------------------------------------------------------------------------
Printing and postage 1,666
- --------------------------------------------------------------------------
Fund Share registration costs 900
- --------------------------------------------------------------------------
Shareholder services fees (Note 5) 3,829
- --------------------------------------------------------------------------
Taxes 167
- --------------------------------------------------------------------------
Miscellaneous 550
- -------------------------------------------------------------------------- --------
Total expenses 56,008
- --------------------------------------------------------------------------
Deduct--
- ----------------------------------------------------------------
Waiver of investment advisory fee (Note 5) $ 1,742
- ----------------------------------------------------------------
Reimbursement of other operating expenses (Note 5) 51,000 52,742
- ---------------------------------------------------------------- ------- --------
Net expenses 3,266
- -------------------------------------------------------------------------------------- -------
Net investment income 19,988
- -------------------------------------------------------------------------------------- -------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- --------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments (4,956)
- -------------------------------------------------------------------------------------- -------
Net unrealized loss on investments (4,956)
- -------------------------------------------------------------------------------------- -------
Change in net assets resulting from operations $15,032
- -------------------------------------------------------------------------------------- -------
</TABLE>
* For the period from September 1, 1993 (date of initial public investment) to
December 31, 1993.
(See Notes which are an integral part of the Financial Statements)
VIRGINIA MUNICIPAL INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED
DECEMBER 31, 1993*
(UNAUDITED)
-------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ----------------------------------------------------------------------
OPERATIONS--
- ----------------------------------------------------------------------
Net investment income $ 19,988
- ----------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments (4,956)
- ---------------------------------------------------------------------- ----------------
Change in net assets resulting from operations 15,032
- ---------------------------------------------------------------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 3)--
- ----------------------------------------------------------------------
Dividends to shareholders from net investment income (19,988)
- ----------------------------------------------------------------------
Distributions in excess of net investment income (Note 3) (3,266)
- ---------------------------------------------------------------------- ----------------
Change in net assets resulting from distributions to shareholders (23,254)
- ---------------------------------------------------------------------- ----------------
FUND SHARE (PRINCIPAL) TRANSACTIONS (NOTE 4)--
- ----------------------------------------------------------------------
Net proceeds from sale of shares 3,425,391
- ----------------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
dividends declared 5,663
- ----------------------------------------------------------------------
Cost of shares redeemed (1,230,210)
- ---------------------------------------------------------------------- ----------------
Change in net assets resulting from Fund share transactions 2,200,844
- ---------------------------------------------------------------------- ----------------
Change in net assets 2,192,622
- ----------------------------------------------------------------------
NET ASSETS:
- ----------------------------------------------------------------------
Beginning of period --
- ----------------------------------------------------------------------
End of period $ 2,192,622
- ---------------------------------------------------------------------- ----------------
</TABLE>
* For the period from September 1, 1993 (date of initial public investment) to
December 31, 1993.
(See Notes which are an integral part of the Financial Statements)
VIRGINIA MUNICIPAL INCOME FUND
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD ENDED DECEMBER 31, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Municipal Securities Income Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company. The financial statements included herein are only those of Virginia
Municipal Income Fund (the "Fund"), a non-diversified portfolio of the Trust.
The financial statements of the other portfolios in the Trust are presented
separately. The assets of each portfolio are segregated and a shareholder's
interest is limited to the portfolio in which shares are held.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
<TABLE>
<S> <C>
A. INVESTMENT VALUATIONS--Municipal bonds are valued at fair value. An independent pricing
service values the Fund's municipal bonds taking into consideration yield, stability,
risk, quality, coupon, maturity, type of issue, trading characteristics, special
circumstances of a security or trading market, and any other factors or market data it
deems relevant in determining valuations for normal institutional size trading units of
debt securities and does not rely exclusively on quoted prices.
Since the Fund may invest a substantial portion of its assets in issuers located in one
state, it will be more susceptible to factors adversely affecting issuers of that state
than would be a comparable general tax-exempt mutual fund. In order to reduce the risk
associated with such factors at December 31, 1993, 31.5% of the securities in the
portfolio of investments are backed by letters of credit or bond insurance of various
financial institutions and financial guaranty assurance agencies. The aggregate
percentages by financial institutions ranged from 4.4% to 13.3% of total investments.
B. INCOME--Interest income is recorded on the accrual basis. Interest income includes
interest earned net of premium, and original issue discount as required by the Internal
Revenue Code.
C. FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the Internal
Revenue Code applicable to regulated investment companies and distribute to shareholders
each year all of its net investment income, including any net realized gain on
investments. Accordingly, no provision for federal tax is necessary. Dividends paid by
the Fund from net interest earned on tax-exempt municipal bonds are not includable by
shareholders as gross income for federal tax purposes because the Fund intends to meet
certain requirements of the Internal Revenue Code applicable to regulated investment
companies which will enable the Fund to pay tax-exempt interest dividends. The portion of
such interest, if any, earned on private activity bonds issued after August 7, 1986, may
be considered a tax preference item for shareholders.
</TABLE>
VIRGINIA MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
D. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in when-issued or
delayed delivery transactions. To the extent the Fund engages in such transactions, it
will do so for the purpose of acquiring portfolio securities consistent with its
investment objective and policies and not for the purpose of investment leverage. The
Fund will record a when-issued security and the related liability on the trade date.
Until the securities are received and paid for, the Fund will maintain security positions
such that sufficient liquid assets will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis are marked to
market daily and begin earning interest on the settlement date.
E. DEFERRED EXPENSES--The costs incurred by the Fund with respect to registration of its
shares in its first fiscal year, excluding the initial expense of registering the shares,
have been deferred and are being amortized using the straight-line method over a period
of five years from the Fund's commencement date.
F. OTHER--Investment transactions are accounted for on the date of the transaction.
Dividends to shareholders are recorded on the ex-dividend date.
</TABLE>
(3) DIVIDENDS
The Fund computes its net income daily and, immediately prior to the calculation
of its net asset value at the close of business, declares and records dividends
to shareholders of record with respect to shares for which payment in federal
funds has been received. Payment of dividends is made monthly in cash, or in
additional shares at the net asset value on the payable date. Capital gains
realized by the Fund are distributed at least once every twelve months and are
recorded on the ex-dividend date. Income distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. This difference is primarily due to differing treatments
for Distribution Services Fees which resulted in distributions to shareholders
in excess of net investment income. These distributions did not represent a
return of capital for federal income tax purposes for the period ended December
31, 1993.
VIRGINIA MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
PERIOD
ENDED
12/31/93*
- --------------------------------------------------------------------------------- ---------
<S> <C>
Shares outstanding, beginning of period --
- ---------------------------------------------------------------------------------
Shares sold 339,438
- ---------------------------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 567
- ---------------------------------------------------------------------------------
Shares redeemed (121,942)
- --------------------------------------------------------------------------------- ---------
Shares outstanding, end of period 218,063
- --------------------------------------------------------------------------------- ---------
</TABLE>
* For the period from September 1, 1993 (date of initial public investment) to
December 31, 1993.
(5) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Federated Advisers, the Fund's investment adviser ("Adviser"), receives for its
services an annual investment advisory fee equal to .40 of 1% of the Fund's
average daily net assets. The Adviser has voluntarily agreed to waive a portion
of its fee. The Adviser can modify or terminate this voluntary waiver at any
time at its sole discretion. For the period from September 1, 1993 (date of
initial public investment) to December 31, 1993 the investment advisory fee
amounted to $1,742 all of which was voluntarily waived. In addition, the Adviser
voluntarily reimbursed $51,000 of the Fund's other operating expenses.
Organizational expenses and start-up administrative service expenses incurred by
the Fund will be borne initially by the Adviser and are estimated at $33,100 and
$54,000, respectively. The Fund has agreed to reimburse the Adviser for the
organizational expenses and start-up administrative expenses initially borne by
the Adviser during the five year period following August 30, 1993 (date the
Fund's portfolio first became effective).
The Fund has adopted a Distribution Plan (the "Plan"), pursuant to Rule 12b-1
under the Investment Company Act of 1940. The Fund will compensate Federated
Securities Corp. ("FSC"), the principal distributor, from the net assets of the
Fund, for the fees it paid which relate to the distribution and administration
of the Fund's shares. The Plan provides that the Fund will incur distribution
expenses up to 0.75 of 1% of the average daily net assets of the Fund's shares
annually, to pay commissions, maintenance fees and to compensate FSC.
Administrative personnel and services are provided at approximate cost by
Federated Administrative Services, Inc. Certain Officers and Trustees of the
Trust are Officers and Directors of the above Corporations.
VIRGINIA MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
The Fund has adopted a Shareholder Services Plan (the "Services Plan") with
respect to the Fund's shares. The Fund will reimburse FSC from the net assets of
the Fund for fees the Fund paid which relate to administrative support services
of the Fund's shares. The Services Plan provides that the Fund may incur
shareholder services expenses up to 0.25 of 1% of the average daily net assets
of the Fund's shares.
(6) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended December 31, 1993 were as follows:
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------
Purchases $2,166,167
- -------------------------------------------------------------------------------- ----------
Sales and Maturities $ --
- -------------------------------------------------------------------------------- ----------
</TABLE>
F. Please replace the inside back cover of the prospectus with the following:
ADDRESSES
<TABLE>
<S> <C>
- ----------------------------------------------------------------------------------------------
Virginia Municipal Income Fund Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
- ----------------------------------------------------------------------------------------------
Distributor
Federated Securities Corp. Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
- ----------------------------------------------------------------------------------------------
Investment Adviser
Federated Advisers Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
- ----------------------------------------------------------------------------------------------
Custodian, Transfer Agent, and Dividend Disbursing Agent
State Street Bank and P.O. Box 8604
Trust Company Boston, Massachusetts 02266-8604
- ----------------------------------------------------------------------------------------------
Legal Counsel
Houston, Houston & Donnelly 2510 Centre City Tower
Pittsburgh, Pennsylvania 15222
- ----------------------------------------------------------------------------------------------
Legal Counsel
Dickstein, Shapiro & Morin 2101 L Street, N.W.
Washington, D. C. 20037
- ----------------------------------------------------------------------------------------------
Independent Auditors
Deloitte & Touche 125 Summer Street
Boston, Massachusetts 02110-1617
- ----------------------------------------------------------------------------------------------
</TABLE>
FEDERATED SECURITIES CORP.
(LOGO)
- --------------------------------------------------------------------------------
Distributor
4010714A (2/94)
VIRGINIA MUNICIPAL INCOME FUND
(A PORTFOLIO OF MUNICIPAL SECURITIES INCOME TRUST)
- --------------------------------------------------------------------------------
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION DATED AUGUST 31, 1993
(REVISED FEBRUARY 28, 1994)
A. Please insert the following information as a second paragraph under the
section entitled "Fund Ownership" on page 9:
"Merrill Lynch as record owner holding Fund shares for its clients owned
12,021 shares (5%) of the fund as of February 7, 1994.
As of February 7, 1994, the following shareholders of record also owned
5% or more of the outstanding shares of the Fund: Federated Disbursing
Corp., Pittsburgh, Pennsylvania, owned approximately 66,855 shares
(28.2%); and Ingeborg Hewette and Sonja Hewette and Michael J. Hewette,
Springfield, Virginia, owned approximately 14,705 shares (6.2%)."
B. Please insert the following as a second paragraph of the sub-section
entitled "Adviser to the Fund" under the main section entitled
"Investment Advisory Services" on page 9:
"From the Fund's effective date, August 30, 1993 to December 31, 1993,
the Fund's adviser earned $1,742, all of which was voluntarily waived."
C. Please insert the following information as the second sentence under the
section entitled "Administrative Services" on page 10:
"From the Fund's effective date, August 30, 1993, to December 31, 1993,
the Fund incurred costs for administrative services of $19,536."
D. Please insert the following information as a final paragraph under the
sub-section entitled "Distribution Plan" on page 11:
"From the Fund's effective date, August 30, 1993, to December 31, 1993,
brokers and administrators (financial institutions) received fees in the
amount of $3,266, pursuant to the distribution plan."
February 28, 1994
FEDERATED SECURITIES CORP.
(LOGO)
- --------------------------------------------------------------------------------
Distributor
4020203 (2/94)
- --------------------------------------------------------------------------------
MARYLAND
- --------------------------------------------------------------------------------
MUNICIPAL
- --------------------------------------------------------------------------------
INCOME FUND
- --------------------------------------------------------------------------------
(A Portfolio of Municipal Securities Income Trust)
SUPPLEMENT TO PROSPECTUS
DATED AUGUST 31, 1993
FEDERATED SECURITIES CORP.
(LOGO)
Distributor
4010713A (2/94)
February 28, 1994
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
---------------------------------------------------
A. Please revise the last sentence of the fourth paragraph on the cover page of
the prospectus to read as follows:
"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."
B. Please insert the following "Financial Highlights" table as page 2 following
the "Summary of Fund Expenses" and before the section entitled "General
Information." In addition, please add the heading "Financial Highlights" to
the Table of Contents on page I following the heading "Summary of Fund
Expenses."
MARYLAND MUNICIPAL INCOME FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
AUGUST 31, 1994*
-------------------
<S> <C>
- ------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
- ------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------------------
Net investment income 0.15
- ------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.01)
- ------------------------------------------------------------------------ -------------------
Total from investment operations 0.14
- ------------------------------------------------------------------------ -------------------
LESS DISTRIBUTIONS
- ------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.15)
- ------------------------------------------------------------------------
Distributions in excess of net investment income (Note 3) (0.02)
- ------------------------------------------------------------------------ -------------------
TOTAL DISTRIBUTIONS (0.17)
- ------------------------------------------------------------------------ -------------------
NET ASSET VALUE, END OF PERIOD $ 9.97
- ------------------------------------------------------------------------ -------------------
TOTAL RETURN** 1.38
- ------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------------------
Expenses 0.75%(a)
- ------------------------------------------------------------------------
Net investment income 5.00%(a)
- ------------------------------------------------------------------------
Expense waiver/reimbursement(b) 12.46%(a)
- ------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 2,512
- ------------------------------------------------------------------------
Portfolio turnover rate 22%
- ------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from September 1, 1993 (date of initial
public investment) to December 31, 1993.
** Based on net asset value which does not reflect the sales load or contingent
deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above (Note 5).
(See Notes which are an integral part of the Financial Statements)
C. Please revise the section of the prospectus entitled "Legal Counsel" on page
16, to read as follows:
"Legal counsel is provided by Houston, Houston & Donnelly, 2510 Centre City
Tower, Pittsburgh, Pennsylvania, and Dickstein, Shapiro & Morin, 2101 L
Street, N.W., Washington, D.C."
D. Please revise the section of the prospectus entitled "Maryland State and
Municipal Taxation" on page 19, to read in its entirety as follows:
"MARYLAND STATE AND MUNICIPAL TAXATION
Under existing Maryland law, shareholders of the Fund who are individuals,
corporations, estates or trusts will not be subject to Maryland taxes on Fund
dividends to the extent that such dividends qualify as exempt-interest dividends
for federal income tax purposes which are attributable to (i) interest on
tax-exempt obligations of the State of Maryland or its political subdivisions or
authorities, (ii) interest on obligations of the United States or an authority,
commission, instrumentality, possession or territory of the United States, or
(iii) gain realized by the Fund from the sale or exchange of bonds issued by
Maryland, a political subdivision of Maryland, or the United States Government
(excluding obligations issued by the District of Columbia, a territory or
possession of the United States, or a department, agency, instrumentality, or
political subdivision of the District, territory or possession).
Distributions, if any, derived from capital gains or other sources generally
will be taxable for Maryland income tax purposes to shareholders of the Fund who
are subject to Maryland income tax."
E. Please insert the following financial statements at the end of the prospectus
beginning on page 21. In addition, please add the heading "Financial
Statements" to the Table of Contents on page I, immediately before
"Addresses."
MARYLAND MUNICIPAL INCOME FUND
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- --------- ----------------------------------------------------------- --------- ----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--97.2%
- ------------------------------------------------------------------------
MARYLAND--100%
-----------------------------------------------------------
$100,000 Baltimore City, MD, 5.35% PCR (General Motors Corp.),
4/1/2008 BBB+ $ 101,335
-----------------------------------------------------------
100,000 Calvert County, MD, 5.55% PCR, Refunding Bonds (Baltimore
Gas & Electric Co.)/(Original Issue Yield: 5.60%),
7/15/2014 A 100,626
-----------------------------------------------------------
500,000 City of Gaithersburg, MD, 5.50% Refunding Revenue Bonds
(First Mortgage Economic Development)/(Asbury Methodist
Homes)/(Original Issue Yield: 6.05%), 1/1/2020 NR 475,910
-----------------------------------------------------------
100,000 Maryland State Community Development Administration Multi-
Family Housing, 5.60% Revenue Bonds, 5/15/2026 Aa 100,326
-----------------------------------------------------------
100,000 Maryland State Health and Higher Education Facilities
Authority, 5.00% Revenue Bonds (University of Maryland
Medical System)/(FGIC Insured)/(Original Issue Yield:
5.72%), 7/1/2020 AAA 95,343
-----------------------------------------------------------
100,000 Maryland State Health and Higher Education Facilities
Authority, 5.25% Revenue Bonds (Sinai Hospital of
Baltimore)/(AMBAC Insured)/(Original Issue Yield: 5.74%),
7/1/2019 AAA 98,479
-----------------------------------------------------------
100,000 Maryland State Health and Higher Education Facilities
Authority, 5.50% Revenue Bonds (Doctors Community
Hospital)/(Original Issue Yield: 6.17%), 7/1/2024 BBB-- 95,296
-----------------------------------------------------------
</TABLE>
MARYLAND MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- --------- ----------------------------------------------------------- --------- ----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------
MARYLAND--CONTINUED
-----------------------------------------------------------
$100,000 Maryland State Health and Higher Education Facilities
Authority, 5.00% Revenue Bonds (Montgomery General
Hospital)/(Connie Lee Insured)/(Original Issue Yield:
5.70%), 7/1/2023 AAA $ 93,960
-----------------------------------------------------------
100,000 Maryland State Health and Higher Education Facilities
Authority, 5.125% Refunding Revenue Bonds (Suburban
Hospital)/(Original Issue Yield: 5.50%), 7/1/2021 A 95,121
-----------------------------------------------------------
250,000 Maryland State Health and Higher Education Facilities
Authority, 5.50% Revenue Bonds (Series 1993)/(Howard County
General Hospital Issue)/(Original Issue Yield: 5.80%),
7/1/2025 BBB 233,357
-----------------------------------------------------------
100,000 Maryland State Health and Higher Education Facilities
Authority, 5.00% Revenue Bonds (Peninsula Regional Medical
Center)/(AMBAC Insured)/(Original Issue Yield: 5.448%),
7/1/2023 AAA 94,977
-----------------------------------------------------------
100,000 Maryland State Health and Higher Education Facilities
Authority, 5.00% Revenue Bonds (Frederick Memorial
Hospital)/ (FGIC Insured)/(Original Issue Yield: 5.56%),
7/1/2023 AAA 95,119
-----------------------------------------------------------
100,000 Maryland State Industrial Development Financing, 5.50% EDA
Revenue Bonds (Holy Cross Health System)/(Original Issue
Yield: 5.80%), 12/1/2015 AA-- 98,430
-----------------------------------------------------------
250,000 Maryland State Industrial Development Financing Authority,
6.25% Revenue Bonds (Series 1992)/(American Center for
Physics Headquarters Facility)/(Original Issue Yield:
6.80%), 1/1/2017 BBB 266,763
-----------------------------------------------------------
</TABLE>
MARYLAND MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT
RATING:
PRINCIPAL MOODY'S
AMOUNT OR S&P* VALUE
- --------- ----------------------------------------------------------- --------- ----------
<C> <S> <C> <C>
LONG-TERM MUNICIPAL SECURITIES--CONTINUED
- ------------------------------------------------------------------------
MARYLAND--CONTINUED
-----------------------------------------------------------
$300,000 Montgomery County, MD Housing Opportunities Commission
Multi-Family Housing Revenue Bonds, 5.75%, 7/1/2034 A $ 300,246
-----------------------------------------------------------
100,000 University of Maryland System Auxiliary Facility and
Tuition, 5.10% Revenue Bonds (1993 Refunding Series C),
10/1/2014 AA+ 97,615
----------------------------------------------------------- ----------
TOTAL MUNICIPAL SECURITIES (IDENTIFIED COST $2,430,662) $2,442,903+
----------------------------------------------------------- ----------
</TABLE>
* See Notes to Portfolio of Investments on pages 6 and 7.
+ The cost of investments for federal tax purposes amounts to $2,430,662. The
net unrealized appreciation on a federal tax basis amounts to $12,241, which
is comprised of $23,723 appreciation and $11,482 depreciation at December 31,
1993.
Note: The categories of investments are shown as a percentage of net assets
($2,512,438) at December 31, 1993.
The following abbreviations are used in this portfolio:
<TABLE>
<S> <C>
AMBAC --American Municipal Bond Assurance Corporation
Connie Lee --College Construction Loan Insurance Association
EDA --Economic Development Authority
FGIC --Financial Guaranty Insurance Co.
NR --Not Rated
PCR --Pollution Control Revenue
</TABLE>
(See Notes which are an integral part of the Financial Statements)
MARYLAND MUNICIPAL INCOME FUND
NOTES TO PORTFOLIO OF INVESTMENTS
- --------------------------------------------------------------------------------
The municipal bonds rated by Moody's Investors Services, Inc. ("Moody's") in
which the Fund may invest are Aaa, Aa, A and Baa. Municipal bonds rated Aaa are
judged to be of the "best quality." The rating of Aa is assigned to municipal
bonds which are of "high quality by all standards," but as to which margins of
protection or other elements make long-term risks appear somewhat larger than
Aaa-rated municipal bonds. The Aaa and Aa-rated municipal bonds comprise what
are generally known as "high-grade bonds." Municipal bonds which are rated A by
Moody's possess many favorable investment attributes and are considered "upper
medium grade obligations." Factors giving security to principal and interest of
A-rated municipal bonds are considered adequate, but elements may be present
which suggest a susceptibility to impairment sometime in the future. Often the
protection of interest and principal payments may be very moderate and thereby
not well safeguarded during both good and bad times over the future. Uncertainty
of position characterizes bonds in this class. Municipal bonds which are rated
Baa by Moody's are considered medium grade obligations, i.e., they are neither
highly protected nor poorly secured. Interest payments and principal security
appear adequate for the present but certain protective elements may be lacking
or may be characteristically unreliable over any great length of time. Such
bonds lack outstanding investment characteristics and in fact have speculative
characteristics as well. The letter ratings carry numerical modifiers with 1
indicating the higher end of the rating category, 2 indicating the mid-range and
3 indicating the lower end of the rating category.
Moody's highest rating for state and municipal short-term securities is
MIG1/VMIG1. Short-term municipal securities rated MIG1/VMIG1 are the best
quality. They have strong protection from established cash flows of funds for
their servicing or have established a broad-based access to the market for
refinancing or both. The VMIG1 rating denotes that the security has a variable
rate and is payable on demand. Moody's rating of MIG2/VMIG2 denotes high quality
margins of protection which are ample although not so large as in the preceding
group.
Standard & Poor's Corporation's ("Standard & Poor's") highest rating for
municipal commercial paper is A-1. Short-term municipal commercial paper rated
A-1 is of the best quality. The capacity for timely payment on issues with an
A-2 designation is strong. The rating Prime-1 (P-1) is the highest municipal
commercial paper rating assigned by Moody's. Issues rated Prime-2 (P-2) have a
strong capacity for repayment of short-term promissory obligations.
The municipal bonds rated by Standard & Poor's in which the Fund may invest are
AAA, AA, A and BBB. Municipal bonds rated AAA are "obligations of the highest
quality." The rating AA is accorded issues with investment characteristics "only
slightly less marked than those of the prime quality issues." The category of A
describes "the third strongest capacity for payment of debt service." Principal
and interest payments on bonds in this category are regarded as safe. It differs
from the two higher ratings because with respect to general obligation bonds
there is some weakness, either in the local economic base, in debt burden, in
the balance between revenues and expenditures, or in quality of management.
Under certain adverse circumstances, any one such weakness might impair the
ability of
MARYLAND MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
the issuer to meet debt obligations at some future date. With respect to revenue
bonds, debt service coverage is good, but not exceptional. Stability of the
pledge revenues could show some variations because of increased competition or
economic influences on revenues. Basic security provisions, while satisfactory,
are less stringent. Municipal bonds which are rated BBB by Standard & Poor's are
regarded as having an adequate capacity to pay interest and repay principal.
Whereas it normally exhibits adequate protection on parameters, adverse economic
conditions or changing circumstances are more likely to lead to a weakened
capacity to pay interest and repay principal for debt in this category than in
higher rated categories. These ratings may be modified by the addition of a plus
or minus sign to show relative standing within the major rating categories.
Standard & Poor's rating SP-1 is assigned to short-term municipal obligations
with a very strong or strong capacity to pay principal and interest. Those
issues determined to possess overwhelming safety characteristics will be given a
plus (+) designation. The SP-2 rating denotes a satisfactory capacity to pay
principal and interest.
The municipal bonds rated by Fitch Investors Service, Inc. ("Fitch") in which
the Fund may invest are AAA, AA, A and BBB. Municipal bonds rated AAA are judged
to be of the "highest credit quality." The rating of AA is considered to be of
investment grade and of very high quality. The category of A describes "the
third strongest investment grade and high credit quality." Bonds rated BBB by
Fitch are considered to be investment grade and of satisfactory credit quality.
These ratings may be modified by the addition of a plus or a minus sign (with
the exception of AAA), to show relative standing within the major rating
categories.
Fitch's highest rating for short-term municipal obligations is F-1. Notes rated
F-1 have a strong degree of assurance of timely payment. Those notes rated F-2
reflect a degree of assurance for timely payment only slightly less in degree
than the highest category. A plus (+) designation may be used to indicate
relative standing within a rating class.
NR indicates the bonds are not currently rated by Moody's, Fitch or Standard &
Poor's. However, management considers them to be of equivalent quality to the
rated securities it purchases.
Bonds for which the security depends upon the completion of some act or the
fulfillment of some condition are rated conditionally.
MARYLAND MUNICIPAL INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Investments in securities, at value (Note 2A)
(identified and tax cost; $2,430,662) $2,442,903
- ---------------------------------------------------------------------------------
Receivable for Fund shares sold 801,543
- ---------------------------------------------------------------------------------
Interest receivable 38,527
- ---------------------------------------------------------------------------------
Receivable from adviser 17,000
- --------------------------------------------------------------------------------- ----------
Total assets 3,299,973
- ---------------------------------------------------------------------------------
LIABILITIES:
- ----------------------------------------------------------------------
Payable for investments purchased $403,590
- ----------------------------------------------------------------------
Payable for Fund shares redeemed 337,000
- ----------------------------------------------------------------------
Dividends payable 5,111
- ----------------------------------------------------------------------
Payable to distributor 123
- ----------------------------------------------------------------------
Accrued expenses 41,711
- ---------------------------------------------------------------------- --------
Total liabilities 787,535
- --------------------------------------------------------------------------------- ----------
NET ASSETS for 252,014 shares of beneficial interest outstanding $2,512,438
- --------------------------------------------------------------------------------- ----------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------
Paid-in capital $2,507,203
- ---------------------------------------------------------------------------------
Net unrealized appreciation on investments 12,241
- ---------------------------------------------------------------------------------
Accumulated undistributed net realized loss on investments (7,006)
- --------------------------------------------------------------------------------- ----------
Total $2,512,438
- --------------------------------------------------------------------------------- ----------
NET ASSET VALUE and Offering Price Per Share
(net assets of $2,512,438 / 252,014 shares of beneficial interest outstanding) $9.97
- --------------------------------------------------------------------------------- -----
REDEMPTION PROCEEDS per share (97/100 of $9.97)* $9.67
- --------------------------------------------------------------------------------- -----
</TABLE>
* See "Contingent Deferred Sales Charge" on page 11 of this prospectus.
(See Notes which are an integral part of the Financial Statements)
MARYLAND MUNICIPAL INCOME FUND
STATEMENT OF OPERATIONS
PERIOD ENDED DECEMBER 31, 1993*
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- --------------------------------------------------------------------------------------
Interest income (Note 2B) $24,318
- --------------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------
Investment advisory fee (Note 5) $ 1,691
- ---------------------------------------------------------------------------
Distribution services fees (Note 5) 3,170
- ---------------------------------------------------------------------------
Custodian, transfer agent and dividend disbursing agent fees 22,380
- ---------------------------------------------------------------------------
Legal fees 2,500
- ---------------------------------------------------------------------------
Administrative personnel and services fees (Note 5) 19,023
- ---------------------------------------------------------------------------
Printing and postage 1,666
- ---------------------------------------------------------------------------
Fund share registration costs 900
- ---------------------------------------------------------------------------
Shareholder services fees (Note 5) 3,814
- ---------------------------------------------------------------------------
Miscellaneous 550
- ---------------------------------------------------------------------------
Taxes 167
- --------------------------------------------------------------------------- -------
Total expenses 55,861
- ---------------------------------------------------------------------------
Deduct--
- -----------------------------------------------------------------
Waiver of investment advisory fee (Note 5) $ 1,691
- -----------------------------------------------------------------
Reimbursement of other operating expenses (Note 5) 51,000 52,691
- ----------------------------------------------------------------- ------- -------
Net expenses 3,170
- -------------------------------------------------------------------------------------- -------
Net investment income 21,148
- -------------------------------------------------------------------------------------- -------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- --------------------------------------------------------------------------------------
Net realized gain (loss) on investment transactions (identified cost basis) (7,006)
- --------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 12,241
- -------------------------------------------------------------------------------------- -------
Net realized and unrealized gain on investments 5,235
- -------------------------------------------------------------------------------------- -------
Change in net assets resulting from operations $26,383
- -------------------------------------------------------------------------------------- -------
</TABLE>
* For the period from September 1, 1993 (date of initial public investment) to
December 31, 1993.
(See Notes which are an integral part of the Financial Statements)
MARYLAND MUNICIPAL INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED
DECEMBER 31, 1993*
(UNAUDITED)
-------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ----------------------------------------------------------------------
OPERATIONS--
- ----------------------------------------------------------------------
Net investment income $ 21,148
- ----------------------------------------------------------------------
Net realized loss on investment transactions ($7,006 net loss, as
computed for federal tax purposes) (7,006)
- ----------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 12,241
- ---------------------------------------------------------------------- ----------------
Change in net assets resulting from operations 26,383
- ---------------------------------------------------------------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 3)--
- ----------------------------------------------------------------------
Dividends to shareholders from net investment income (21,148)
- ----------------------------------------------------------------------
Distributions in excess of net investment income (Note 3) (3,170)
----------
- ----------------------------------------------------------------------
Change in net assets resulting from distributions to shareholders (24,318)
- ---------------------------------------------------------------------- ----------------
FUND SHARE (PRINCIPAL) TRANSACTIONS (NOTE 4)--
- ----------------------------------------------------------------------
Net proceeds from sale of shares 4,344,390
- ----------------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
dividends declared 8,773
- ----------------------------------------------------------------------
Cost of shares redeemed (1,842,790)
- ---------------------------------------------------------------------- ----------------
Change in net assets resulting from Fund share transactions 2,510,373
- ---------------------------------------------------------------------- ----------------
Change in net assets 2,512,438
- ---------------------------------------------------------------------- ----------------
NET ASSETS:
- ----------------------------------------------------------------------
Beginning of period --
- ----------------------------------------------------------------------
End of period $ 2,512,438
- ---------------------------------------------------------------------- ----------------
</TABLE>
* For the period from September 1, 1993 (date of initial public investment) to
December 31, 1993.
(See Notes which are an integral part of the Financial Statements)
MARYLAND MUNICIPAL INCOME FUND
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED DECEMBER 31, 1993
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
Municipal Securities Income Trust (the "Trust"), is registered under the
Investment Company Act of 1940, as amended, an open-end, management investment
company. The financial statements included herein are only those of Maryland
Municipal Income Fund (the "Fund"), a non-diversified portfolio of the Trust.
The financial statements of the other portfolios in the Trust are presented
separately. The assets of each portfolio are segregated and a shareholder's
interest is limited to the portfolio in which shares are held.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
<TABLE>
<S> <C>
A. INVESTMENT VALUATIONS--Municipal bonds are valued at fair value. An independent pricing
service values the Fund's municipal bonds taking into consideration yield, stability,
risk, quality, coupon, maturity, type of issue, trading characteristics, special
circumstances of a security or trading market, and any other factors or market data it
deems relevant in determining valuations for normal institutional size trading units of
debt securities and does not rely exclusively on quoted prices.
Since the Fund may invest a substantial portion of its assets in issuers located in one
state, it will be more susceptible to factors adversely affecting issuers of that state
than would be a comparable general tax-exempt mutual fund. In order to reduce the risk
associated with such factors, at December 31, 1993, 20% of the securities in the
portfolio of investments are backed by letters of credit or bond insurance of various
financial institutions and financial guaranty assurance agencies. The aggregate
percentages by financial institutions ranged from 3.8% to 7.9% of total investments.
B. INCOME--Interest income is recorded on the accrual basis. Interest income includes
interest earned net of premium, and original issue discount as required by the Internal
Revenue Code.
C. FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the Internal
Revenue Code applicable to regulated investment companies and distribute to shareholders
each year all of its net investment income, including any net realized gain on
investments. Accordingly, no provision for federal tax is necessary. Dividends paid by
the Fund from net interest earned on tax-exempt municipal bonds are not includable by
shareholders as gross income for federal tax purposes because the Fund intends to meet
certain requirements of the Internal Revenue Code applicable to regulated investment
companies which will enable the Fund to pay tax-exempt interest dividends. The portion of
such interest, if any, earned on private activity bonds issued after August 7, 1986, may
be considered a tax preference item for shareholders.
</TABLE>
MARYLAND MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
D. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in when-issued or
delayed delivery transactions. To the extent the Fund engages in such transactions, it
will do so for the purpose of acquiring portfolio securities consistent with its
investment objective and policies and not for the purpose of investment leverage. The
Fund will record a when-issued security and the related liability on the trade date.
Until the securities are received and paid for, the Fund will maintain security positions
such that sufficient liquid assets will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis are marked to
market daily and begin earning interest on the settlement date.
E. DEFERRED EXPENSES--Costs incurred by the Fund with respect to registration of its shares
in its first fiscal year excluding the initial expense of registering the shares, have
been deferred and are being amortized using the straight-line method over a period of
five years from the Fund's commencement date.
F. OTHER--Investment transactions are accounted for on the date of the transaction.
Dividends to shareholders are recorded on the ex-dividend date.
</TABLE>
(3) DIVIDENDS
The Fund computes its net income daily and, immediately prior to the calculation
of its net asset value at the close of business, declares and records dividends
to shareholders of record with respect to shares for which payment in federal
funds has been received. Payment of dividends is made monthly in cash, or in
additional shares at the net asset value on the payable date. Capital gains
realized by the Fund are distributed at least once every twelve months and are
recorded on the ex-dividend date. Income distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. This difference is primarily due to differing treatments
for Distribution Services Fees which resulted in distributions to shareholders
in excess of net investment income. These distributions did not represent a
return of capital for federal income tax purposes for the period ended December
31, 1993.
MARYLAND MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
(4) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
PERIOD ENDED
12/31/93*
- ----------------------------------------------------------------------------- ------------
<S> <C>
Shares outstanding, beginning of period --
- -----------------------------------------------------------------------------
Shares sold 436,639
- -----------------------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared 886
- -----------------------------------------------------------------------------
Shares redeemed (185,511)
--------
- -----------------------------------------------------------------------------
Shares outstanding, end of period 252,014
--------
- -----------------------------------------------------------------------------
</TABLE>
* For the period from September 1, 1993 (date of initial public investment) to
December 31, 1993.
(5) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Federated Advisers, the Fund's investment adviser ("Adviser"), receives for its
services an annual investment advisory fee equal to .40 of 1% of the Fund's
average daily net assets. The Adviser has voluntarily agreed to waive a portion
of its fee. The Adviser can modify or terminate this voluntary waiver at any
time at its sole discretion. For the period from September 1, 1993 (date of
initial public investment) to December 31, 1993, the investment advisory fee
amounted to $1,691 all of which was voluntarily waived. In addition, the Adviser
voluntarily reimbursed $51,000 of the Fund's other operating expenses.
Organizational expenses and start-up administrative service expenses incurred by
the Fund will be borne initially by the Adviser. The Fund has agreed to
reimburse the Adviser for the organizational expenses and start-up
administrative expenses initially borne by the Adviser during the five-year
period following August 30, 1993 (date the Fund's portfolio first became
effective).
During the period ended December 31, 1993, the Fund engaged in purchase and sale
transactions with other funds advised by the Adviser pursuant to Rule 17a-7 of
the Investment Company Act of 1940 amounting to $1,150,000 and $1,150,000,
respectively. These purchases and sales were conducted on an arms-length basis
insofar as they were transacted for cash consideration only, at independent
current market prices and without brokerage commission, fee or other
remuneration.
The Fund has adopted a Distribution Plan (the "Plan"), pursuant to Rule 12b-1
under the Investment Company Act of 1940. The Fund will compensate Federated
Securities Corp. ("FSC"), the principal distributor, from the net assets of the
Fund, for the fees it paid which relate to the distribution and administration
of the Fund's shares. The Plan provides that the Fund will incur distribution
expenses
MARYLAND MUNICIPAL INCOME FUND
- --------------------------------------------------------------------------------
up to 0.75 of 1% of the average daily net assets of the Fund's shares annually,
to pay commissions, maintenance fees and to compensate FSC.
Administrative personnel and services are provided at approximate cost by
Federated Administrative Services, Inc. Certain Officers and Trustees of the
Trust are Officers and Directors of the above Corporations.
The Fund has adopted a Shareholder Services Plan (the "Services Plan") with
respect to the Fund's shares. The Fund will reimburse FSC from the net assets of
the Fund for fees the Fund paid which relate to administrative support services
of the Fund's shares. The Services Plan provides that the Fund may incur
shareholder services expenses up to 0.25 of 1% of the average daily net assets
of the Fund's shares.
(6) INVESTMENT TRANSACTIONS
Purchases and sales of investments excluding short-term securities, for the
period ended December 31, 1993, were as follows:
<TABLE>
<S> <C>
- --------------------------------------------------------------------------------
PURCHASES $2,833,947
- -------------------------------------------------------------------------------- ----------
SALES AND MATURITIES $ 396,360
- -------------------------------------------------------------------------------- ----------
</TABLE>
F. Please replace the inside back cover of the prospectus with the following:
ADDRESSES
<TABLE>
<S> <C>
- ----------------------------------------------------------------------------------------------
Maryland Municipal Income Fund Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
- ----------------------------------------------------------------------------------------------
Distributor
Federated Securities Corp. Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
- ----------------------------------------------------------------------------------------------
Investment Adviser
Federated Advisers Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
- ----------------------------------------------------------------------------------------------
Custodian, Transfer Agent, and Dividend Disbursing Agent
State Street Bank and P.O. Box 8604
Trust Company Boston, Massachusetts 02266-8604
- ----------------------------------------------------------------------------------------------
Legal Counsel
Houston, Houston & Donnelly 2510 Centre City Tower
Pittsburgh, Pennsylvania 15222
- ----------------------------------------------------------------------------------------------
Legal Counsel
Dickstein, Shapiro & Morin 2101 L Street, N.W.
Washington, D. C. 20037
- ----------------------------------------------------------------------------------------------
Independent Auditors
Deloitte & Touche 125 Summer Street
Boston, Massachusetts 02110-1617
- ----------------------------------------------------------------------------------------------
</TABLE>
FEDERATED SECURITIES CORP.
(LOGO)
- --------------------------------------------------------------------------------
Distributor
4010713A (2/94)
MARYLAND MUNICIPAL INCOME FUND
(A PORTFOLIO OF MUNICIPAL SECURITIES INCOME TRUST)
- --------------------------------------------------------------------------------
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION DATED AUGUST 31, 1993
A. Please insert the following information as a second paragraph under the
section entitled "Fund Ownership" on page 9:
"As of February 7, 1994, the following shareholders of record owned 5%
or more of the outstanding shares of the Fund: Federated Disbursing
Corp., Pittsburgh, Pennsylvania, owned approximately 33,779 shares
(11.9%); Joseph D. Mitchell and Linda C. Mitchell, Gaithersburg,
Maryland, owned approximately 30,870 shares (10.9%); and Alex Brown &
Sons, Inc., Baltimore, Maryland, owned approximately 14,867 shares
(5.2%)."
B. Please insert the following as a second paragraph to the sub-section
entitled "Adviser to the Fund" under the main section entitled
"Investment Advisory Services" on page 9:
"From the Fund's effective date, August 30, 1993 to December 31, 1993,
the Fund's adviser earned $1,691, all of which was voluntarily waived."
C. Please insert the following information as the second sentence under the
section entitled "Administrative Services" on page 10:
"From the Fund's effective date, August 30, 1993, to December 31, 1993,
the Fund incurred costs for administrative services of $19,023."
D. Please insert the following information as a final paragraph under the
sub-section entitled "Distribution Plan" on page 10:
"From the Fund's effective date, August 30, 1993, to December 31, 1993,
brokers and administrators (financial institutions) received fees in the
amount of $3,170, pursuant to the distribution plan."
February 28, 1994
FEDERATED SECURITIES CORP.
(LOGO)
- --------------------------------------------------------------------------------
Distributor
4020407 (2/94)
PART C. OTHER INFORMATION.
Item 24. Financial Statements and Exhibits:
(a) Financial Statements: Filed in Part A.
(b) Exhibits:
(1) (i) Copy of Declaration of Trust of the Registrant
(1.);
(ii) Amendment No. 1 (dated August 26, 1991) to Declaration
of Trust (5.);
(iii) Amendment No. 2 (dated August 6, 1990) to the
Declaration of Trust (6.);
(iv) Amendment No. 3 (dated August 31, 1992) to the
Declaration of Trust (8.);
(v) Copy of Amendment No. 4 (dated September 17,
1992) to the Declaration of Trust (8.);
(vi) Copy of Amendment No. 5 (dated February 4, 1993) to
the Declaration of Trust (10.);
(vii) Copy of Amendment No. 6 (dated May 24, 1993) to the
Declaration of Trust; (13)
(2) Copy of By-Laws of the Registrant (1.);
(3) Not applicable;
(4) Copy of Specimen Certificate for Shares of Beneficial
Interest for:
(i) Pennsylvania Municipal Income Fund - Trust
Shares(6.);
(ii) Ohio Municipal Income Fund - Trust Shares(6.);
(iii) California Municipal Income Fund (10.);
(iv) New York Municipal Income Fund (10.);
(v) Florida Municipal Income Fund (10.);
(vi) New Jersey Municipal Income Fund (10.);
(vii) Texas Municipal Income Fund (10.);
(viii) Michigan Municipal Income Fund (11.);
(ix) Maryland Municipal Income Fund;+
(x) Virginia Municipal Income Fund;+
+ All exhibits are filed electronically.
1. Response is incorporated by reference to Registrant's Initial
Registration Statement on Form N-1A filed August 31, 1990. (File Nos.
33-36729 and 811-6165)
5. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 4 on Form N-1A filed on October 28, 1991. (File Nos.
33-36729 and 811-6165)
6. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 5 on Form N-1A filed on January 24, 1992. (File Nos.
33-36729 and 811-6165)
8. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 7 on Form N-1A filed on September 25, 1992. (File Nos.
33-36729 and 811-6165)
10. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 10 on Form N-1A filed on March 24, 1993. (File Nos.
33-36729 and 811-6165)
11. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 11 on Form N-1A filed on April 28, 1993. (File Nos.
33-36729 and 811-6165)
13. Response is incorporated by reference to Registrant's Post -Effective
Amendment No. 13 on Form N-1A filed on July 2, 1993, (File Nos.
33-36729 and 811-6165)
(5) Copy of new Investment Advisory Contract of the Registrant
(8.);
(i) Copy of Amendment to Investment Advisory
Contract (12.)
(ii) Conformed Copies of Amendments to Investment
Advisory Contract;+
(iii) Conformed Copies of Amendments to Investment
Advisory Contract;+
(6) Copy of Distributor's Contract of the Registrant (8.);
(i) Copy of Amendment to Distributor's Contract
(12.);
(ii) Conformed copy of Amendment to Distributor's
Contract (14.);
(7) Not applicable;
(8) Copy of Custodian Agreement of the Registrant (10.);
(9) Copy of Transfer Agency and Service Agreement of the
Registrant (11.);
(10) Copy of Opinion and Consent of Counsel as to the
legality of shares being registered (1);
(11) (i) Opinion and Consent of Special Counsel (1.);
(ii) Opinion as to Tax Treatment of shareholders of
Michigan Municipal Income Fund (7.);
(iii) Report of Arthur Andersen & Co. entitled "Methodology
and Procedures for Accounting for Multiple Classes of
Shares" dated May 1, 1992 (8.);
(iv) Opinion as to Tax Treatment of shareholders of Ohio
Municipal Income Fund (9.);
(v) Opinion as to Tax Treatment of shareholders of
California Municipal Income Fund (10.);
(vi) Opinion as to Tax Treatment of shareholders of New
York Municipal Income Fund (11.);
(vii) Opinion as to Tax Treatment of shareholders of Florida
Municipal Income Fund (14.);
+ All exhibits are filed electronically.
1. Response is incorporated by reference to Registrant's Initial
Registration Statement on Form N-1A filed August 31, 1990. (File Nos.
33-36729 and 811-6165)
7. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 6 on Form N-1A filed on March 24, 1992. (File Nos.
33-36729 and 811-6165)
8. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 7 on Form N-1A filed on September 25, 1992. (File Nos.
33-36729 and 811-6165)
9. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 8 on Form N-1A filed on October 26, 1992. (File Nos.
33-36729 and 811-6165)
10. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 10 on Form N-1A filed on March 24, 1993. (File Nos.
33-36729 and 811-6165)
11. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 11 on Form N-1A filed on April 28, 1993. (File Nos.
33-36729 and 811-6165)
12. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 12 on Form N-1A filed on May 17, 1993. (File Nos.
33-36729 and 811-6165)
14. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 14 on Form N-1A filed on October 28, 1993. (File Nos.
33-36729 and 811-6165)
(viii) Opinion as to Tax Treatment of shareholders of New
Jersey Municipal Income Fund (14.);
(ix) Opinion as to Tax Treatment of shareholders of
Maryland Municipal Income Fund;
(x) Opinion as to Tax Treatment of shareholders of
Virginia Municipal Income Fund;
(12) Not applicable;
(13) Copy of Initial Capital Understanding (1.);
(14) Not applicable;
(15) (i) Copy of Distribution Plan (12.);
(ii) Conformed copy of Distribution Plan for Florida
Municipal Income Fund, New Jersey Municipal Income
Fund, Texas Municipal Income Fund, Pennsylvania
Municipal Income Fund (Income Shares), Maryland
Municipal Income Fund, and Virginia Municipal Income
Fund;+
(iii) Copy of 12b-1 Agreement (8.);
(iv) Conformed copy of Shareholder Services Plan;+
(v) Copy of Shareholder Services Agreement (10.);
(16) Schedule for Computation of Fund Performance Data for:
(i) Ohio Municipal Income Fund (3.);
(ii) Pennsylvania Municipal Income Fund (3.);
(iii) California Municipal Income Fund (11.);
(iv) New York Municipal Income Fund (11.);
(v) Michigan Municipal Income Fund (11.);
(vi) Florida Municipal Income Fund (14.);
(vii) Texas Municipal Income Fund (14.);
(viii) New Jersey Municipal Income Fund; (14.)
(ix) Maryland Municipal Income Fund;+
.........(x) Virginia Municipal Income Fund;+
(17) Power of Attorney (11);
(18) Opinion and Consent of Counsel as to availability of
Rule 485(b);+
+ All exhibits are filed electronically.
1. Response is incorporated by reference to Registrant's Initial
Registration Statement on Form N-1A filed August 31, 1990. (File Nos.
33-36729 and 811-6165)
7. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 6 on Form N-1A filed on March 24, 1992. (File Nos.
33-36729 and 811-6165)
8. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 7 on Form N-1A filed on September 25, 1992. (File Nos.
33-36729 and 811-6165)
9. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 8 on Form N-1A filed on October 26, 1992. (File Nos.
33-36729 and 811-6165)
10. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 10 on Form N-1A filed on March 24, 1993. (File Nos.
33-36729 and 811-6165)
11. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 11 on Form N-1A filed on April 28, 1993. (File Nos.
33-36729 and 811-6165)
12. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 12 on Form N-1A filed on May 17, 1993. (File Nos.
33-36729 and 811-6165)
14. Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 14 on Form N-1A filed on October 28, 1993. (File Nos.
33-36729 and 811-6165)
Item 25. Persons Controlled by or Under Common Control with Registrant
None
Item 26. Number of Holders of Securities:
Number of Record Holders
Title of Class as of February 18, 1994
Shares of
beneficial interest
Pennsylvania Municipal
Income Fund
Investment Shares 1453
Trust Shares 101
Income Shares 178
Ohio Municipal Income Fund
Fortress Shares 1268
Trust Shares 24
Michigan Municipal Income Fund 717
California Municipal Income Fund
Fortress Shares 239
New York Municipal Income Fund
Fortress Shares 249
Florida Municipal Income Fund 73
New Jersey Municipal Income Fund 132
Texas Municipal Income Fund 180
Maryland Municipal Income Fund 108
Virginia Municipal Income Fund 85
Item 27. Indemnification: (1.)
Item 28. Business and Other Connections of Investment Adviser:
(a) For a description of the other business of the investment
adviser, see the section entitled "Trust Information -
Management of the Trust" in Part A. The affiliations with
the Registrant of four of the Trustees and one of the
Officers of the investment adviser are included in Part B of
this Registration Statement under "Trust Management -
Officers and Trustees." The remaining Trustee of the
investment adviser, his position with the investment adviser,
and, in parentheses, his principal occupation is: Mark D.
Olson, (Partner, Wilson, Halbrook & Bayard), 107 W. Market
Street, Georgetown, Delaware, 19947.
The remaining Officers of the investment adviser are: Mark
L. Mallon, Executive Vice President; Henry J. Gailliot,
Senior Vice President-Economist; Peter R. Anderson, William
D. Dawson, III, J. Thomas Madden, Gary J. Madich; and J. Alan
Minteer, Senior Vice Presidents; Jonathan C. Conley, Deborah
A. Cunningham, Mark Durbiano, Roger A. Early, Kathleen
Foody-Malus, David C. Francis, Thomas M. Franks, Edward C.
Gonzales, Jeff A. Kozemchak, John W. McGonigle, Gregory M.
Melvin, Susan M. Nason, Mary Jo Ochson, Robert J. Ostrowski,
Charles A. Ritter, and Christopher H. Wiles, Vice Presidents;
Edward C. Gonzales, Treasurer; and John W. McGonigle,
Secretary. The business address of each of the Officers of
the investment adviser is Federated Investors Tower,
Pittsburgh, PA 15222-3779. These individuals are also
officers of a majority of the investment advisers to the
Funds listed in Part B of this Registration Statement under
"The Funds."
Item 29. Principal Underwriters:
(a) Federated Securities Corp., the Distributor for shares of the
Registrant, also acts as principal underwriter for the
following open-end investment companies: A.T. Ohio Tax-Free
Money Fund; American Leaders Fund, Inc.; Annuity Management
Series; Automated Cash Management Trust; Automated Government
Money Trust; BankSouth Select Funds; BayFunds; The Biltmore
Funds; The Biltmore Municipal Funds; The Boulevard Funds;
California Municipal Cash Trust; Cambridge Series Trust; Cash
Trust Series, Inc.; Cash Trust Series II; DG Investor Series;
Edward D. Jones & Co. Daily Passport Cash Trust; FT Series,
Inc.; Federated ARMs Fund; Federated Exchange Fund, Ltd.;
Federated GNMA Trust; Federated Government Trust; Federated
Growth Trust; Federated High Yield Trust; Federated Income
Securities Trust; Federated Income Trust; Federated Index
Trust; Federated Intermediate Government Trust; Federated
Master Trust; Federated Municipal Trust; Federated
Short-Intermediate Government Trust; Federated Short-Term
U.S. Government Trust; Federated Stock Trust; Federated
Tax-Free Trust; Federated U.S. Government Bond Fund;
Financial Reserves Fund; First Priority Funds; First Union
Funds; Fixed Income Securities, Inc.; Fortress Adjustable
Rate U.S. Government Fund, Inc.; Fortress Municipal Income
Fund, Inc.; Fortress Utility Fund, Inc.; Fountain Square
Funds; Fund for U.S. Government Securities, Inc.; Government
Income Securities, Inc.; High Yield Cash Trust; Independence
One Mutual Funds; Insight Institutional Series, Inc.;
Insurance Management Series; Intermediate Municipal Trust;
Investment Series Funds, Inc.; Investment Series Trust;
Liberty Equity Income Fund, Inc.; Liberty High Income Bond
Fund, Inc.; Liberty Municipal Securities Fund, Inc.; Liberty
U.S. Government Money Market Trust; Liberty Utility Fund,
Inc.; Liquid Cash Trust; Mark Twain Funds; Marshall Funds,
Inc.; Money Market Management, Inc.; Money Market Obligations
Trust; Money Market Trust; The Monitor Funds; Municipal
Securities Income Trust; New York Municipal Cash Trust; 111
Corcoran Funds; The Planters Funds; Portage Funds; RIMCO
Monument Funds; The Shawmut Funds; Short-Term Municipal
Trust; Signet Select Funds; SouthTrust Vulcan Funds; Star
Funds; The Starburst Funds; The Starburst Funds II; Stock and
Bond Fund, Inc.; Sunburst Funds; Targeted Duration Trust;
Tax-Free Instruments Trust; Tower Mutual Funds; Trademark
Funds; Trust for Financial Institutions; Trust for Government
Cash Reserves; Trust for Short-Term U.S. Government
Securities; Trust for U.S. Treasury Obligations; Vision
Fiduciary Funds, Inc.; and Vision Group of Funds, Inc.
Federated Securities Corp. also acts as principal underwriter
for the following closed-end investment company: Liberty
Term Trust, Inc.- 1999.
(b)
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address With Underwriter With Registrant
Richard B. Fisher Director, Chairman, Chief President
Federated Investors Tower Executive Officer, Chief
Pittsburgh, PA 15222-3779 Operating Officer, and
Asst. Treasurer, Federated
Securities Corp.
Edward C. Gonzales Director, Executive Vice Vice President and
Federated Investors Tower President, and Treasurer, Treasurer
Pittsburgh, PA 15222-3779 Federated Securities
Corp.
John W. McGonigle Director, Executive Vice Vice President and
Federated Investors Tower President, and Assistant Secretary
Pittsburgh, PA 15222-3779 Secretary, Federated
Securities Corp.
John A. Staley, IV Executive Vice President Vice President
Federated Investors Tower and Assistant Secretary,
Pittsburgh, PA 15222-3779 Federated Securities Corp.
John B. Fisher President-Institutional Sales, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
James F. Getz President-Broker/Dealer, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Mark R. Gensheimer Executive Vice President of --
Federated Investors Tower Bank/Trust
Pittsburgh, PA 15222-3779 Federated Securities Corp.
James S. Hamilton Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
James R. Ball Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Mark W. Bloss Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Richard W. Boyd Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Mary J. Combs Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Laura M. Deger Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address With Underwriter With Registrant
Jill Ehrenfeld Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Theodore Fadool, Jr. Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Bryant R. Fisher Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Mark D. Fisher Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Christopher T. Fives Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Joseph D. Gibbons Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
James M. Heaton Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
William E. Kugler Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Dennis M. Laffey Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
J. Michael Miller Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
R. Jeffrey Niss Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Keith Nixon Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Michael P. O'Brien Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Solon A. Person, IV Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address With Underwriter With Registrant
Robert F. Phillips Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Timothy C. Pillion Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Eugene B. Reed Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Paul V. Riordan Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Charles A. Robison Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
David W. Spears Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Thomas E. Territ Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Richard B. Watts Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
R. Edmond Connell, Jr. Assistant Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Philip C. Hetzel Assistant Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
H. Joseph Kennedy Assistant Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
S. Elliott Cohan Secretary, Federated Assistant
Federated Investors Tower Securities Corp. Secretary
Pittsburgh, PA 15222-3779
(c) Not applicable.
Item 30. Location of Accounts and Records: (1.)
1. Response is incorporated by reference to Registrant's Initial
Registration Statement on Form N-1A filed August 31, 1990. (File Nos.
33-36729 and 811-6165)
Item 31. Management Services:
Not applicable.
Item 32. Undertakings:
Registrant hereby undertakes to comply with the provisions of
Section 16(c) of the 1940 Act with respect to the removal of
Trustees and the calling of special shareholder meetings by
shareholders.
Registrant hereby undertakes to furnish each person to whom a
prospectus is delivered with a copy of the Registrant's latest
annual report to shareholders upon request and without charge.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant, MUNICIPAL SECURITIES
INCOME TRUST, certifies that it meets all of the requirements for
effectiveness of this Amendment to its Registration Statement pursuant
to Rule 485(b) under the Securities Act of 1933 and has duly caused this
Amendment to its Registration Statement to be signed on its behalf by
the undersigned, thereunto duly authorized, all in the City of
Pittsburgh and Commonwealth of Pennsylvania, on the 24th day of
February, 1994.
MUNICIPAL SECURITIES INCOME TRUST
BY: /s/J. Crilley Kelly
J. Crilley Kelly, Assistant Secretary
Attorney in Fact for John F. Donahue
February 24, 1994
Pursuant to the requirements of the Securities Act of 1933, this
Amendment to its Registration Statement has been signed below by the
following person in the capacity and on the date indicated:
NAME TITLE DATE
By: /s/J. Crilley Kelly
J. Crilley Kelly Attorney In Fact February 24,
1994
ASSISTANT SECRETARY For the Persons
Listed Below
NAME TITLE
John F. Donahue* Chairman and Trustee
(Chief Executive Officer)
Richard B. Fisher* President
Edward C. Gonzales* Vice President and Treasurer
(Principal Financial and
Accounting Officer)
John T. Conroy, Jr.* Trustee
William J. Copeland* Trustee
J. Christopher Donahue* Trustee
James E. Dowd* Trustee
Lawrence D. Ellis, M.D.* Trustee
Edward L. Flaherty, Jr.* Trustee
Peter E. Madden* Trustee
Gregor F. Meyer* Trustee
Wesley W. Posvar* Trustee
Marjorie P. Smuts* Trustee
* By Power of Attorney
Exhibit (18) on N-1A
Exhibit (99) under Item 601 Reg. S-K
HOUSTON, HOUSTON & DONNELLY
ATTORNEYS AT LAW
2510 CENTRE CITY TOWER
WILLIAM McC. HOUSTON PITTSBURGH, PA. 15222
FRED CHALMERS HOUSTON, JR. __________
THOMAS J. DONNELLY
JOHN F. MECK (412) 471-5828 FRED CHALMERS HOUSTON
FAX (412) 471-0736 (1914 - 1971)
MARIO SANTILLI, JR.
THEODORE M. HAMMER
February 24, 1994
Municipal Securities Income Trust
Federated Investors Tower
Pittsburgh, PA 15222-3779
Gentlemen:
As counsel to Municipal Securities Income Trust ("Trust") we have
reviewed Post-effective Amendment No. 15 to the Trust's Registration Statement
to be filed with the Securities and Exchange Commission under the Securities
Act of 1933 (File No. 33-36729). The subject Post-effective Amendment will be
filed pursuant to Paragraph (b) of Rule 485 and become effective pursuant to
said Rule immediately upon filing.
Our review also included an examination of other relevant portions of
the amended 1933 Act Registration Statement of the Trust and such other
documents and records deemed appropriate. On the basis of this review we are
of the opinion that Post-effective Amendment No. 15 does not contain
disclosures which would render it ineligible to become effective pursuant to
Paragraph (b) of Rule 485.
We hereby consent to the filing of this representation letter as a part
of the Trust's Registration Statement filed with the Securities and Exchange
Commission under the Securities Act of 1933 and as part of any application or
registration statement filed under the Securities Laws of the States of the
United States.
Very truly yours,
Houston, Houston & Donnelly
By: /s/Thomas J. Donnelly
TJD:smg
<TABLE>
Exhibit (16)(ix) on Form N-1A
Exhibit (12) under Item 601, Reg S-K
<CAPTION>
<S> <C> <C> <C> <C> <C>
Maryland Muni Income Fund Yield = 2{( $9,674.87 - $1,200.00 )+1)^6-1}=
Computation of SEC Yield 197,838 * $9.97 - 0.00000 )
As of: December 31, 1993
SEC Yield = 5.21%
Dividend and/or Interest
Inc for the 30 days ended $9,674.87
Net Expenses for $1,200.00
the Period
Avg Daily Shares
Outstanding and entitled
to receive dividends 197,838
Maxium offering price $9.97
per share as of 12-31-93
Undistributed net income 0.00000
Tax Equivalent Yield
(assumes individual
does not itemize
on Federal Return)
100 % minus the Federal
taxable % (100%-28%=72%)
30 SEC yield / by the tax
equiv % (5.21%/72.0%)= 7.24%
Exhibit (16)(ix) on Form N-1A
Exhibit (12) under Item 601, Reg S-K
Schedule for Computation Initial
of Fund Performance Data Invest of: 1000
Offering
Maryland Muni Inc Fund Price/
Share= 10.13
Return Since Inception
ending 12/31/93 NAV= 10.13
FYE: August 31
Begin C Reinvest Ending T
DECLARED: DAILY Reinvest Period Dividend G Price Period Ending I
PAID: MONTHLY Dates Shares /Share / /Share Shares Price V
34242 98.71668312 0.028177005 0 10.02 98.994282 10.02 #
34273 98.99428197 0.045150057 0 9.98 99.4421374 9.98 #
34303 99.44213743 0.045610212 0 9.74 99.9078024 9.74 #
34334 99.90780241 0.047569297 0 9.67 100.399275 9.67 #
$1,000 (1+T) = End Value
T = -0.02913901
</TABLE>
<TABLE>
Exhibit 16(x) on Form N-1A
Exhibit (12) under Item 601, Reg S-K
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Schedule for Computation Initial
of Fund Performance Data Invest of: $1,000
Offering
Virginia Muni Inc Fund Price/
Share= $10.12
Return Since Inception
ending 8/31/93 NAV= $10.12
FYE: August 31
Begin Capital Reinvest Ending Total
DECLARED: DAILY Reinvest Period Dividend Gain Price Period Ending Invest
PAID: MONTHLY Dates Shares /Share /Share /Share Shares Price Value
9/30/93 98.814 0.027617018 0.00000 $10.17 99.083 $10.17 $1,007.67
10/31/93 99.083 0.042652501 0.00000 $10.14 99.499 $10.14 $1,008.92
11/30/93 99.499 0.044165132 0.00000 $9.80 99.948 $9.80 $979.49
12/31/93 99.948 0.044294849 0.00000 $10.05 100.388 $10.05 $1,008.90
$1,000 (1+T) = End Value
T = 0.89%
Exhibit (16)(x) on Form N-1A
Exhibit (12) under Item 601, Reg S-K
Schedule for Computation Initial
of Fund Performance Data Invest of: 1000
Offering
Virginia Muni Inc Fund Price/
Share= 10.12
Return Since Inception
ending 8/31/93 NAV= 10.12
FYE: August 31
Begin Capital Reinvest Ending Total
DECLARED: DAILY Reinvest Period Dividend Gain Price Period Ending Invest
PAID: MONTHLY Dates Shares /Share /Share /Share Shares Price Value
34242 98.8142 0.027617018 0 10.17 99.0826 10.17 1007.66967
34273 99.0826 0.042652501 0 10.14 99.4993 10.14 1008.92331
34303 99.4993 0.044165132 0 9.8 99.9477 9.8 979.487934
34334 99.9477 0.044294849 0 9.75 100.402 9.75 978.917717
$1,000 (1+T) = End Value
T = -0.021082283
Exhibit (16)(x) on Form N-1A
Exhibit (12) under Item 601, Reg S-K
Virginia Muni Inc Fund Yield = 2 8803.06 - 1210.28 )+1)^6-1}
Computation of SEC Yield 195356.87 *( 10.05 - 0 )
As of: December 31, 1993
SEC Yield = 0.0469
Dividend and/or Interest
Inc for the 30 days ended 8803.06
Net Expenses for 1210.28
the Period
Avg Daily Shares
Outstanding and entitled
to receive dividends 195356.87
Maxium offering price 10.05
per share as of 12-31-93
Undistributed net income 0
Tax Equivalent Yield
(assumes individual
does not itemize
on Federal Return)
100 % minus the Federal
taxable % (100%-28%=72%)
30 SEC yield / by the tax
equiv % (4.65%/72.0%)= 0.065138889
</TABLE>
Exhibit (15)(ii) on Form N-1A
Exhibit (10) under Item 601/Reg. S-K
MUNICIPAL SECURITIES INCOME TRUST
RULE 12b-1PLAN
This Plan ("Plan") is adopted as of this 1st day of
March, 1993, by the Board of Trustees of Municipal Securities
Income Trust (the "Trust"), a Massachusetts business trust with
respect to certain classes of shares ("Classes") of the
portfolios of the Trust (the "Funds") set forth in exhibits
hereto.
1. This Plan is adopted pursuant to Rule 12b-1 under
the Investment Company Act of 1940 ("Act") so as to allow the
Trust to make payments as contemplated herein, in conjunction
with the distribution of Classes of the Funds ("Shares").
2. This Plan is designed to finance activities of
Federated Securities Corp. ("FSC") principally intended to result
in the sale of Shares to include: (a) providing incentives to
financial institutions ("Institutions") to sell Shares; (b)
advertising and marketing of Shares to include preparing,
printing and distributing prospectuses and sales literature to
prospective shareholders and with Institutions; and (c)
implementing and operating the Plan. In compensation for
services provided pursuant to this Plan, FSC will be paid a fee
in respect of the following Funds set forth on the applicable
exhibit.
3. Any payment to FSC in accordance with this Plan will
be made pursuant to the "Distributor's Contract" entered into by
the Trust and FSC. Any payments made by FSC to Institutions
with funds received as compensation under this Plan will be made
pursuant to the "Rule 12b-1 Agreement" entered into by FSC and
the Institution.
4. FSC has the right (i) to select, in its sole discretion,
the Institutions to participate in the Plan and (ii) to terminate
without cause and in its sole discretion any Rule 12b-1
Agreement.
5. Quarterly in each year that this Plan remains in
effect, FSC shall prepare and furnish to the Board of Trustees of
the Trust, and the Board of Trustees shall review, a written
report of the amounts expended under the Plan and the purpose for
which such expenditures were made.
6. This Plan shall become effective with respect to
each Fund (i) after approval by majority votes of: (a) the
Trust's Board of Trustees; (b) the members of the Board of the
Trust who are not interested persons of the trust and have no
direct or indirect financial interest in the operation of the
Trust's Plan or in any related documents to the Plan
("Disinterested Trustees"), cast in person at a meeting called
for the purpose of voting on the Plan; and (c) the outstanding
voting securities of the particular Fund, as defined in Section
2(a)(42) of the Act and (ii) upon execution of an exhibit
adopting this Plan with respect to such Fund.
7. This Plan shall remain in effect with respect to
each Fund/Class presently set forth on an exhibit and any
subsequent Funds added pursuant to an exhibit during the initial
year of this Plan for the period of one year from the date set
forth above and may be continued thereafter if this Plan is
approved with respect to each Fund at least annually by a
majority of the Trust's Board of Trustees and a majority of the
Disinterested Trustees, cast in person at a meeting called for
the purpose of voting on such Plan. If this Plan is adopted with
respect to a Fund after the first annual approval by the Trustees
as described above, this Plan will be effective as to that Fund
upon execution of the applicable exhibit pursuant to the
provisions of paragraph 6(ii) above and will continue in effect
until the next annual approval of this Plan by the Trustees and
thereafter for successive periods of one year subject to approval
as described above.
8. All material amendments to this Plan must be
approved by a vote of the Board of Trustees of the Trust and of
the Disinterested Trustees, cast in person at a meeting called
for the purpose of voting on it.
9. This Plan may not be amended in order to increase
materially the costs which the Funds may bear for distribution
pursuant to the Plan without being approved by a majority vote of
the outstanding voting securities of the Classes as defined in
Section 2(a)(42) of the Act.
10. This Plan may be terminated with respect to a
particular Class at any time by: (a) a majority vote of the
Disinterested Trustees; or (b) a vote of a majority of the
outstanding voting securities of the particular Class as defined
in Section 2(a)(42) of the Act; or (c) by FSC on 60 days notice
to the Trust.
11. While this Plan shall be in effect, the selection
and nomination of Disinterested Trustees of the Trust shall be
committed to the discretion of the Disinterested Trustees then in
office.
12. All agreements with any person relating to the
implementation of this Plan shall be in writing and any agreement
related to this Plan shall be subject to termination, without
penalty, pursuant to the provisions of Paragraph 10 herein.
13. This Plan shall be construed in accordance with and
governed by the laws of the Commonwealth of Pennsylvania.
EXHIBIT A
to the
12b-1 Plan
MUNICIPAL SECURITIES INCOME TRUST
Florida Municipal Income Fund
This Plan is adopted by Municipal Securities Income Trust
with respect to the Class of Shares of the portfolio of the Trust
set forth above.
In compensation for the services provided pursuant to this
Plan, FSC will be paid a monthly fee computed at the annual rate
of .75 of 1% of the average
aggregate net asset value of the shares of the portfolio named
above held during
the month.
Witness the due execution hereof this 1st day of March,
1993.
MUNICIPAL
SECURITIES INCOME TRUST
By: /s/ Richard B.
Fisher
President
EXHIBIT B
to the
12b-1 Plan
MUNICIPAL SECURITIES INCOME TRUST
New Jersey Municipal Income Fund
This Plan is adopted by Municipal Securities Income Trust
with respect to the Class of Shares of the portfolio of the Trust
set forth above.
In compensation for the services provided pursuant to this
Plan, FSC will be paid a monthly fee computed at the annual rate
of .75 of 1% of the average aggregate net asset value of the
shares of the portfolio held during the month.
Witness the due execution hereof this 1st day of March,
1993.
MUNICIPAL
SECURITIES INCOME TRUST
By: /s/ Richard B.
Fisher
President
EXHIBIT C
to the
Plan
MUNICIPAL SECURITIES INCOME TRUST
Texas Municipal Income Fund
This Plan is adopted by Municipal Securities Income Trust
with respect to the Class of Shares of the portfolio of the Trust
set forth above.
In compensation for the services provided pursuant to this
Plan, FSC will be paid a monthly fee computed at the annual rate
of .75 of 1% of the average aggregate net asset value of the
shares of the portfolio held during the month.
Witness the due execution hereof this 1st day of March,
1993.
MUNICIPAL
SECURITIES INCOME TRUST
By: /s/ Richard B.
Fisher
President
EXHIBIT D
to the
Plan
MUNICIPAL SECURITIES INCOME TRUST
Maryland Municipal Income Fund
This Plan is adopted by Municipal Securities Income Trust
with respect to the Class of Shares of the portfolio(s) of the
Trust set forth above.
In compensation for the services provided pursuant to this
Plan, FSC will be paid a monthly fee computed at the annual rate
of .75 of 1% of the average aggregate net asset value of the
shares of the portfolio held during the month.
Witness the due execution hereof this 1st day of June, 1993.
MUNICIPAL
SECURITIES INCOME TRUST
By: /s/ Richard B.
Fisher
President
EXHIBIT E
to the
Plan
MUNICIPAL SECURITIES INCOME TRUST
Pennsylvania Municipal Income Fund
(Income Shares)
This Plan is adopted by Municipal Securities Income Trust
with respect to the Class of Shares of the portfolio of the Trust
set forth above.
In compensation for the services provided pursuant to this
Plan, FSC will be paid a monthly fee computed at the annual rate
of .75 of 1% of the average aggregate net asset value of the
shares of the portfolio held during the month.
Witness the due execution hereof this 1st day of June, 1993.
MUNICIPAL
SECURITIES INCOME TRUST
By: /s/ Richard B.
Fisher
President
EXHIBIT F
to the
Plan
MUNICIPAL SECURITIES INCOME TRUST
Virginia Municipal Income Fund
This Plan is adopted by Municipal Securities Income Trust
with respect to the Class of Shares of the portfolio(s) of the
Trust set forth above.
In compensation for the services provided pursuant to this
Plan, FSC will be paid a monthly fee computed at the annual rate
of .75 of 1% of the average aggregate net asset value of the
shares of the portfolio held during the month.
Witness the due execution hereof this 1st day of June, 1993.
MUNICIPAL
SECURITIES INCOME TRUST
By: /s/ Richard B.
Fisher
President
Exhibit (15)(iv) on Form N-1A
Exhibit (10) under Item 601/Reg. S-K
Municipal Securities Income Trust
SHAREHOLDER SERVICES PLAN
This Shareholder Services Plan ("Plan") is adopted as
of this 1st day of March, 1993, by the Board of Trustees of
Municipal Securities Income Trust (the "Fund"), a Massachusetts
business trust with respect to certain classes of shares
("Classes") of the portfolios of the Trust (the "Funds") set
forth in exhibits hereto.
1. This Plan is adopted to allow the Fund to make
payments as contemplated herein to obtain certain personal
services for shareholders and/or the maintenance of shareholder
accounts ("Services").
2. This Plan is designed to compensate broker/dealers
and other participating financial institutions and other persons
("Providers") for providing services to the Fund and its
shareholders. The Plan will be administered by Federated
Administrative Services, Inc. ("FAS"). In compensation for the
services provided pursuant to this Plan, Providers will be paid
a monthly fee computed at the annual rate not to exceed .25 of
1% of the average aggregate net asset value of the shares of the
Fund held during the month.
3. Any payments made by the Funds to any Provider
pursuant to this Plan will be made pursuant to the "Shareholder
Services Agreement" entered into by FAS on behalf of the Fund
and the Provider. Providers which have previously entered into
"Administrative Agreements" or "Rule 12b-1 Agreements" with
Federated Securities Corp. may be compensated under this Plan
for Services performed pursuant to those Agreements until the
Providers have executed a "Shareholder Services Agreement"
hereunder.
4. The Trust has the right (i) to select, in its sole
discretion, the Providers to participate in the Plan and (ii) to
terminate without cause and in its sole discretion any
Shareholder Services Agreement.
5. Quarterly in each year that this Plan remains in
effect, FAS shall prepare and furnish to the Board of Trustees
of the Fund, and the Board of Trustees shall review, a written
report of the amounts expended under the Plan.
6. This Plan shall become effective (i) after approval
by majority votes of: (a) the Fund's Board of Trustees; and (b)
the members of the Board of the Trust who are not interested
persons of the Turst and have no direct or indirect financial
interest in the operation of the Turst's Plan or in any related
documents to the Plan ("Disinterested Trustees"), cast in person
at a meeting called for the purpose of voting on the Plan; and
(ii) upon execution of an exhibit adopting this Plan.
7. This Plan shall remain in effect with respect to
each Class presently set forth on an exhibit and any subsequent
Classes added pursuant to an exhibit during the initial year of
this Plan for the period of one year from the date set forth
above and may be continued thereafter if this Plan is approved
with respect to each Class at least annually by a majority of
the Fund's Board of Trustees and a majority of the Disinterested
Trustees, cast in person at a meeting called for the purpose of
voting on such Plan. If the Plan is adopted with respect to a
class after the first annual approval by the Trustees as
described ablve, this Plan will be effective as to that Class
upon execution of the applicable exhibit pursuant to the
provisions of paragraph 6(ii) above and will continue in effect
until the next annual approval of this Plan by the Trustees and
thereafter for successive periods of one year subject to
approval as described above.
8. All material amendments to this Plan must be
approved by a vote of the Board of Trustees of the Fund and of
the Disinterested Trustees, cast in person at a meeting called
for the purpose of voting on it.
9. This Plan may be terminated at any time by: (a) a
majority vote of the Disinterested Trustees; or (b) a vote of a
majority of the outstanding voting securities of the Fund as
defined in Section 2(a)(42) of the Act.
10. While this Plan shall be in effect, the
selection and nomination of Disinterested Trustees of the Fund
shall be committed to the discretion of the Disinterested
Trustees then in office.
11. All agreements with any person relating to the
implementation of this Plan shall be in writing and any
agreement related to this Plan shall be subject to termination,
without penalty, pursuant to the provisions of Paragraph 9
herein.
12. This Plan shall be construed in accordance with
and governed by the laws of the Commonwealth of Pennsylvania.
Witness the due execution hereof this 1st day of March,
1993.
Municipal Securities Income Trust
By: /s/ Richard B. Fisher
President
EXHIBIT A
to the
Shareholder Services Plan
MUNICIPAL SECURITIES INCOME TRUST
Florida Municipal Income Fund
New Jersey Municipal Income Fund
Texas Municipal Income Fund
This Plan is adopted by Municipal Securities Income Trust
with respect to the Classes of Shares of the portfolios of the
Trust set forth above.
In compensation for the services provided pursuant to this
Plan, Providers will be paid a monthly fee computed at the
annual rate of .25 of 1% of the average aggregate net asset
value of the Shares of the above portfolios of the Trust held
during the month.
Witness the due execution hereof this 1st day of March,
1993.
Municipal Securities Income Trust
By: /s/ Richard B. Fisher
President
EXHIBIT B
to the
Shareholder Services Plan
MUNICIPAL SECURITIES INCOME TRUST
Pennsylvania Municipal Income Fund
(Investment Shares)
This Plan is adopted by Municipal Securities Income Trust
with respect to the Classes of Shares of the portfolios of the
Trust set forth above.
In compensation for the services provided pursuant to this
Plan, Providers will be paid a monthly fee computed at the
annual rate of .25 of 1% of the average aggregate net asset
value of the Shares of the above portfolios of the Trust held
during the month.
Witness the due execution hereof this 21st day of May, 1993.
Municipal Securities Income Trust
By: /s/ Richard B. Fisher
President
EXHIBIT C
to the
Shareholder Services Plan
MUNICIPAL SECURITIES INCOME TRUST
Pennsylvania Municipal Income Fund
(Income Shares)
Maryland Municipal Income Fund
Virginia Municipal Income Fund
This Plan is adopted by Municipal Securities Income Trust
with respect to the Classes of Shares of the portfolios of the
Trust set forth above.
In compensation for the services provided pursuant to this
Plan, Providers will be paid a monthly fee computed at the
annual rate of .25 of 1% of the average aggregate net asset
value of the Shares of the above portfolios of the Trust held
during the month.
Witness the due execution hereof this 1st day of June, 1993.
Municipal Securities Income Trust
By: /s/ Richard B. Fisher
President
Exhibit (4)(ix) on Form N-1A
Exhibit (20) under Item 601, Reg. S-K
MUNICIPAL SECURITIES INCOME TRUST
MARYLAND MUNICIPAL INCOME FUND
Number
Shares
_____
_____
Account No. Alpha Code
See Reverse Side For
Certain Definitions
THIS IS TO CERTIFY THAT is
the owner of
CUSIP_____________
Fully Paid and Non-Assessable Shares of Beneficial Interest of MARYLAND
MUNICIPAL INCOME FUND, a portfolio of MUNICIPAL SECURITIES INCOME TRUST,
hereafter called the Trust, transferable on the books of the Trust by the
owner in person or by duly authorized attorney upon surrender of this
certificate properly endorsed.
The shares represented hereby are issued and shall be held subject to
the provisions of the Declaration of Trust and By-Laws of the Trust and all
amendments thereto, all of which the holder by acceptance hereof assents.
This Certificate is not valid unless countersigned by the Transfer
Agent.
IN WITNESS WHEREOF, the Trust has caused this Certificate to be signed
in its name by its proper officers and to be sealed with its seal.
Dated: MUNICIPAL SECURITIES INCOME TRUST
MARYLAND MUNICIPAL INCOME FUND
Corporate Seal
Massachusetts
/s/ Edward C. Gonzales
/s/ John F. Donahue
Treasurer
Chairman
Countersigned: [State Street Bank
and Trust Company/Federated Services
Company/Other] (Boston)
Transfer Agent
By:
Authorized Signature
The following abbreviations, when used in the inscription on the face of
this Certificate, shall be construed as though they were written out in full
according to applicable laws or regulations;
TEN COM - as tenants in common UNIF GIFT MIN ACT-...Custodian...
TEN ENT - as tenants by the entireties (Cust) (Minors)
JT TEN - as joint tenants with right of under Uniform Gifts to Minors
survivorship and not as tenants Act.............................
in common (State)
Additional abbreviations may also be used though not in the above list.
For value received__________ hereby sell, assign, and transfer unto
Please insert social security or other
identifying number of assignee
______________________________________
_____________________________________________________________________________
(Please print or typewrite name and address, including zip code, of
assignee)
_____________________________________________________________________________
_____________________________________________________________________________
______________________________________________________________________
shares
of beneficial interest represented by the within Certificate, and do hereby
irrevocably constitute and appoint
__________________________________________
_____________________________________________________________________________
to transfer the said shares on the books of the within named Trust with full
power of substitution in the premises.
Dated______________________
NOTICE:______________________________
The signature to this assignment must
correspond with the name as written upon
the face of the certificate in every
particular, without alteration or
enlargement or any change whatever.
All persons dealing with , a Massachusetts
business trust, must look solely to the Trust property for the enforcement
of any claim against the Trust, as the Trustees, officers, agents or
shareholders of the Trust assume no personal liability whatsoever for
obligations entered into on behalf of the Trust.
THIS SPACE MUST NOT BE COVERED IN ANY WAY
DOCUMENT DESCRIPTION - SPECIMEN STOCK CERTIFICATE
Page One
A. The Certificate is outlined by an (color) one-half inch border.
B. The number in the upper left-hand corner and the number of shares in
the upper right-hand corner are outlined by octagonal boxes.
C. The cusip number in the middle right-hand area of the page is boxed.
D. The Massachusetts corporate seal appears in the bottom middle of the
page.
Page Two
The social security or other identifying number of the assignee
appears in a box in the top-third upper-left area of the page.
Exhibit (4)(x) on Form N-1A
Exhibit (20) under Item 601/Reg. S-K
MUNICIPAL SECURITIES INCOME TRUST
VIRGINIA MUNICIPAL INCOME FUND
Number
Shares
_____
_____
Account No. Alpha Code
See Reverse Side For
Certain Definitions
THIS IS TO CERTIFY THAT is
the owner of
CUSIP_____________
Fully Paid and Non-Assessable Shares of Beneficial Interest of VIRGINIA
MUNICIPAL INCOME FUND, a portfolio of MUNICIPAL SECURITIES INCOME TRUST,
hereafter called the Trust, transferable on the books of the Trust by the
owner in person or by duly authorized attorney upon surrender of this
certificate properly endorsed.
The shares represented hereby are issued and shall be held subject to
the provisions of the Declaration of Trust and By-Laws of the Trust and all
amendments thereto, all of which the holder by acceptance hereof assents.
This Certificate is not valid unless countersigned by the Transfer
Agent.
IN WITNESS WHEREOF, the Trust has caused this Certificate to be signed
in its name by its proper officers and to be sealed with its seal.
Dated: MUNICIPAL SECURITIES INCOME TRUST
VIRGINIA MUNICIPAL INCOME FUND
Corporate Seal
1990
Massachusetts
/s/ Edward C. Gonzales
/s/ John F. Donahue
Treasurer
Chairman
Countersigned: Federated Services
Company
Transfer Agent
By:
Authorized Signature
The following abbreviations, when used in the inscription on the face of
this Certificate, shall be construed as though they were written out in full
according to applicable laws or regulations;
TEN COM - as tenants in common UNIF GIFT MIN ACT-...Custodian...
TEN ENT - as tenants by the entireties (Cust) (Minors)
JT TEN - as joint tenants with right of under Uniform Gifts to Minors
survivorship and not as tenants Act.............................
in common (State)
Additional abbreviations may also be used though not in the above list.
For value received__________ hereby sell, assign, and transfer unto
Please insert social security or other
identifying number of assignee
______________________________________
_____________________________________________________________________________
(Please print or typewrite name and address, including zip code, of
assignee)
_____________________________________________________________________________
_____________________________________________________________________________
______________________________________________________________________
shares
of beneficial interest represented by the within Certificate, and do hereby
irrevocably constitute and appoint
__________________________________________
_____________________________________________________________________________
to transfer the said shares on the books of the within named Trust with full
power of substitution in the premises.
Dated______________________
NOTICE:______________________________
The signature to this assignment must
correspond with the name as written upon
the face of the certificate in every
particular, without alteration or
enlargement or any change whatever.
All persons dealing with MUNICIPAL SECURITIES INCOME TRUST, a Massachusetts
business trust, must look solely to the Trust property for the enforcement
of any claim against the Trust, as the Trustees, officers, agents or
shareholders of the Trust assume no personal liability whatsoever for
obligations entered into on behalf of the Trust.
THIS SPACE MUST NOT BE COVERED IN ANY WAY
DOCUMENT DESCRIPTION - SPECIMEN STOCK CERTIFICATE
Page One
A. The Certificate is outlined by an (color) one-half inch border.
B. The number in the upper left-hand corner and the number of shares in
the upper right-hand corner are outlined by octagonal boxes.
C. The cusip number in the middle right-hand area of the page is boxed.
D. The Massachusetts corporate seal appears in the bottom middle of the
page.
Page Two
The social security or other identifying number of the assignee
appears in a box in the top-third upper-left area of the page.
