PENNSYLVANIA MUNICIPAL INCOME FUND
(A Portfolio of Municipal Securities Income Trust)
Class A Shares
SUPPLEMENT TO PROSPECTUS DATED OCTOBER 31, 1994
1. Under the section entitled "What Shares Cost" on page 10, please insert
the following as a third paragraph:
"No sales load is imposed for Class A Shares purchased through bank trust
departments, investment advisers registered under the Investment Advisers
Act of 1940, as amended, or retirement plans where the third party
administrator has entered into certain arrangements with Federated
Securities Corp., or its affiliates, or to shareholders designated as
Liberty Life Members. However, investors who purchase Shares through a
trust department, investment adviser, or retirement plan may be charged an
additional service fee by the institution. Additionally, no sales load is
imposed for Class A Shares purchased through "wrap accounts" or similar
programs, under which clients pay a fee or fees for services."
2. Please delete the section entitled "Contingent Deferred Sales Charge" on
page 15 and insert the following:
"CONTINGENT DEFERRED SALES CHARGE
Class A Shares purchased under a periodic special offering with the proceeds
of a redemption of shares of an unaffiliated investment company purchased or
redeemed with a sales load and not distributed by Federated Securities Corp.
may be charged a contingent deferred sales charge of .50 of 1.00% for
redemptions made within one full year of purchase. Any applicable
contingent deferred sales charge will be imposed on the lesser of the net
asset value of the redeemed Shares at the time of purchase or the net asset
value of the redeemed Shares at the time of redemption.
The contingent deferred sales charge will be deducted from the redemption
proceeds otherwise payable to the shareholder and will be retained by the
distributor. The contingent deferred sales charge will not be imposed with
respect to: (1) Shares acquired through the reinvestment of dividends or
distributions of long-term capital gains; and (2) Shares held for more than
one full year from the date of purchase with respect to applicable Class A
Shares. Redemptions will be processed in a manner intended to maximize the
amount of redemption which will not be subject to a contingent deferred
sales charge. In computing the amount of the applicable contingent deferred
sales charge, redemptions are deemed to have occurred in the following
order: (1) Shares acquired through the reinvestment of dividends and long-
term capital gains; (2) Shares held for more than one full year from the
date of purchase with respect to applicable Class A Shares; and (3) Shares
held for less than one full year from the date of purchase with respect to
applicable Class A Shares on a first-in, first-out basis. A contingent
deferred sales charge is not assessed in connection with an exchange of Fund
Shares for shares of other funds in
the Liberty Family of Funds in the same class (see "Exchange Privilege").
Any contingent deferred sales charge imposed at the time the exchanged-for
shares are redeemed is calculated as if the shareholder had held the shares
from the date on which he became a shareholder of the exchanged-from shares.
Moreover, the contingent deferred sales charge will be eliminated with
respect to certain redemption's (see "Elimination of Contingent Deferred
Sales Charge")."
June 30, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
625922505
G01058-03 (6/95)
CMR506017
