1933 Act File No. 333-23801
1940 Act File No. 811-6165
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-14
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
MUNICIPAL SECURITIES INCOME TRUST
(Exact Name of Registrant as Specified in Charter)
Pre-Effective Amendment No.
---- ----
X Post-Effective Amendment No. 1
- - - -
(412) 288-1900
(Area Code and Telephone Number)
Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
(Address of Principal Executive Offices)
JOHN W. MCGONIGLE, ESQUIRE
Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
It is proposed that this filing will become effective immediately upon
filing pursuant to Rule 485(b).
An indefinite amount of the Registrant's securities has been registered
under the Securities Act of 1933 pursuant to Rule 24f-2 under the
Investment Company Act of 1940. In reliance upon such Rule, no filing fee
is being paid at this time. A Rule 24f-2 notice of the Registrant for the
fiscal year ended August 31, 1995 was filed on October 16, 1995 and filed
the Notice required by Rule 24e-2 for its fiscal year ended August 31, 1996
on October 15, 1996.
Copy to:
Matthew G. Maloney, Esquire
Dickstein Shapiro Morin & Oshinsky LLP
2101 L Street, N.W.
Washington, D.C. 20037
CROSS REFERENCE SHEET
PURSUANT TO ITEM 1(A) OF FORM N-14 SHOWING LOCATION IN
PROSPECTUS OF INFORMATION REQUIRED BY FORM N-14
Item of Part A of Form N-14 and Caption or Location in
Caption Prospectus
1.Beginning of Registration
Statement and Outside Front Cross Reference Sheet;
Cover Page of Prospectus Cover Page
2.Beginning and Outside Back
Cover Page of Prospectus Table of Contents
3.Fee Table, Synopsis Information Summary of Expenses; Summary;
and Risk Factors Risk Factors
4.Information About the Information About the
Transaction Reorganization
5.Information About the Information About the Federated
Registrant Fund, and the William Penn Portfolio
6.Information About the Information About the Federated Fund
Company Being Acquired and the William Penn Portfolio
7.Voting Information Voting Information
8.Interest of Certain Persons
and Experts Not Applicable
9.Additional Information
Required for Reoffering by
Persons Deemed to be
Underwriters Not Applicable
Incorporate by reference pursuant to Rule 411 under the Securities Act of
1933, Parts A and B of Registrant's Definitive Registration Statement
filed on Form N-14 on April 28, 1997 (File Nos. 333-23801 and 811-6165).
PART C - OTHER INFORMATION
Item 15. Indemnification
Indemnification is provided to trustees and officers of the
Registrant pursuant to the Registrant's Declaration of Trust, except where
such indemnification is not permitted by law. However, the Declaration of
Trust does not protect the trustees or officers from liability based on
willful misfeasance, bad faith, gross negligence or reckless disregard of
the duties involved in the conduct of their office.
Trustees and officers of the Registrant are insured against certain
liabilities, including liabilities arising under the Securities Act of 1933
(the "Act").
Insofar as indemnification for liabilities arising under the Act
may be permitted to trustees, officers, and controlling persons of the
Registrant by the Registrant pursuant to the Declaration of Trust or
otherwise, the Registrant has been advised that in the opinion of the
Securities and Exchange Commission, such indemnification is against public
policy as expressed in the Act and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities (other than
the payment by the Registrant of expenses incurred or paid by trustees,
officers, or controlling persons of the Registrant in connection with the
successful defense of any act, suit, or proceeding) is asserted by such
trustees, officers, or controlling persons in connection with the shares
being registered, the Registrant will, unless in the opinion of its counsel
the matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the
final adjudication of such issue.
Insofar as indemnification for liabilities may be permitted
pursuant to Section 17 of the Investment Company Act of 1940 for trustees,
officers, or controlling persons of the Registrant by the Registrant
pursuant to the Declaration of Trust or otherwise, the Registrant is aware
of the position of the Securities and Exchange Commission as set forth in
Investment Company Act Release No. IC-11330. Therefore, the Registrant
undertakes that in addition to complying with the applicable provisions of
the Declaration of Trust or otherwise, in the absence of a final decision
on the merits by a court or other body before which the proceeding was
brought, that an indemnification payment will not be made unless in the
absence of such a decision, a reasonable determination based upon factual
review has been made (i) by a majority vote of a quorum of non-party
trustees who are not interested persons of the Registrant or (ii) by
independent legal counsel in a written opinion that the indemnitee was not
liable for an act of willful misfeasance, bad faith, gross negligence, or
reckless disregard of duties. The Registrant further undertakes that
advancement of expenses incurred in the defense of a proceeding (upon
undertaking for repayment unless it is ultimately determined that
indemnification is appropriate) against an officer, trustee, or controlling
person of the Registrant will not be made absent the fulfillment of at
least one of the following conditions: (i) the indemnitee provides
security for his undertaking; (ii) the Registrant is insured against losses
arising by reason of any lawful advances; or (iii) a majority of a quorum
of disinterested non-party trustees or independent legal counsel in a
written opinion makes a factual determination that there is reason to
believe the indemnitee will be entitled to indemnification.
Item 16. Exhibits
1.1 Conformed Copy of Declaration of Trust of the Registrant (1)
1.2 Conformed Copy of Amendment No. 1 (dated August 26, 1991) to
Declaration of
Trust (2)
1.3 Conformed Copy of Amendment No. 2 (dated August 6, 1990) to
Declaration of
Trust (3)
1.4 Conformed Copy of Amendment No. 3 (dated August 31, 1992) to
Declaration of
Trust (4)
1.5 Conformed Copy of Amendment No. 4 (dated September 17, 1992) to
Declaration of
Trust (4)
1.6 Conformed Copy of Amendment No. 5 (dated February 4, 1993) to
Declaration of
Trust (5)
1.7 Conformed Copy of Amendment No. 6 (dated May 24, 1993) to Declaration
of
Trust (6)
2.1 Bylaws of the Registrant(1)
3 Not Applicable
4 Agreement and Plan of Reorganization dated as of March 24, 1997,
between William Penn Interest Income Fund, a Pennsylvania common law trust,
on behalf of its portfolio, Pennsylvania Tax-Free Income Portfolio, and
Municipal Securities Income Trust, a Massachusetts business trust, on
behalf of its portfolio Federated Pennsylvania Municipal Income Fund(13)
5 Copy of Specimen Certificate for Shares of Beneficial Interest of the
Registrant(7)
6.1 Conformed Copy of Investment Advisory Contract of the Registrant(4)
6.2 Conformed Copies of Amendments to the Investment Advisory Contract(8)
7.1 Conformed Copy of Distributor's Contract of the Registrant(4)
7.2 Conformed Copy of Amendment to Distributor's Contract(8)
7.3 The Registrant hereby incorporates the conformed copy of the specimen
Mutual Funds Sales and Service Agreement; Mutual Funds Service Agreement;
and Plan Trustee/Mutual Funds Service Agreement from Item 24(b)(6) of the
Cash Trust Series II Registration Statement on Form N-1A, filed with the
Commission on July 24, 1995. (File Nos. 33-38550 and 811-6269)
8 Not Applicable
9 Conformed Copy of Custodian Agreement of the Registrant(9)
10.1 Conformed Copy of Rule 12b-1 Plan of the Registrant(10)
10.2 Copy of Rule 12b-1 Agreement of the Registrant(4)
10.3 The Registrant hereby incorporates the conformed copy of the specimen
Multiple Class Plan from Item 24(b)(18) of the World Investment Series,
Inc. Registration Statement on Form N-1A, filed with the Commission on
January 26, 1996. (File Nos. 33-52149 and 811-07141)
10.4 The responses described in Item 16 (7.4) are hereby incorporated by
reference
11 Opinion of S. Elliott Cohan, Deputy General Counsel, Federated
Investors regarding legality of shares being issued(12)
12 Opinion of Dickstein Shapiro Morin & Oshinsky LLP regarding tax
consequences of Reorganization*
13.1 Conformed Copy of Agreement for Fund Accounting Services,
Administrative Services, Transfer Agency Services and Custody Services
Procurement(7)
13.2 Conformed Copy of Shareholder Services Agreement(11)
13.3 The responses described in Item 16 (7.4) and Item 16 (10.3) are hereby
incorporated by reference
13.4 With respect to Class A Shares, the Registrant hereby incorporates the
conformed copy of the Shareholder Services Subcontract between Fidelity and
Federated Shareholder Services from Item 24(b)(9)(iii) of the Federated
GNMA Trust Registration on Form N-1A, filed with the Commission on March
25, 1996. (File Nos. 2-75670 and 811-3375)
14.1 Conformed copy of Consent of Independent Auditors of the Registrant,
Deloitte & Touche LLP*
14.2 Conformed copy of Consent of Independent Auditors of Pennsylvania Tax-
Free Income Portfolio, Ernst & Young LLP*
15 Not Applicable
16 Conformed Copy of Power of Attorney(12)
17.1 Declaration under Rule 24f-2(12)
17.2 Form of Proxy of Pennsylvania Tax-Free Income Portfolio(13)
* 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)
(2) 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)
(3) 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)
(4) 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)
(5) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 10 on Form N-1A filed March 24, 1993. (File Nos. 33-36729 and
811-6165)
(6) 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)
(7) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 21 on Form N-1A filed on October 23, 1996. (File
Nos. 33-36729 and 811-6165)
(8) 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)
(9) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 19 on Form N-1A filed on October 30, 1995. (File
Nos. 33-36729 and 811-6165)
(10) 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)
(11) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 17 on Form N-1A filed on December 30, 1994. (File
Nos. 33-36729 and 811-6165)
(12) Response is incorporated by reference to Registrant's Initial
Registration Statement on Form N-14 filed March 24, 1997 (File Nos. 333-
23801 and 811-6165)
(13) Response is incorporated by reference to Registrant's Definitive
Registration Statement on Form N-14 filed April 28, 1997 (File Nos. 333-
23801 and 811-6165)
Item 17. Undertakings
(1) The undersigned Registrant agrees that prior to any public
reoffering of the securities registered through the use of a prospectus
which is a part of this Registration Statement by any person or party who
is deemed to be an underwriter within the meaning of Rule 145(c) of the
Securities Act of 1933, the reoffering prospectus will contain the
information called for by the applicable registration form for reofferings
by persons who may be deemed underwriters, in addition to the information
called for by the other items of the applicable form.
(2) The undersigned Registrant agrees that every prospectus that
is filed under paragraph (1) above will be filed as a part of an amendment
to the Registration Statement and will not be used until the amendment is
effective, and that, in determining any liability under the Securities Act
of 1933, each post-effective amendment shall be deemed to be a new
Registration Statement for the securities offered therein, and the offering
of the securities at that time shall be deemed to be the initial bona fide
offering of them.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, 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 Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Pittsburgh,
Commonwealth of Pennsylvania on June 6, 1997.
MUNICIPAL SECURITIES INCOME TRUST
(Registrant)
By: *
Richard B. Fisher
President
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in
the capacities indicated on
June 6, 1997:
* Chairman and Trustee
John F. Donahue
(Chief Executive Officer)
* President
Richard B. Fisher
* Executive Vice President and Trustee
J. Christopher Donahue
* Treasurer, Executive Vice President, and
Secretary
John W. McGonigle
(Principal Financial and
Accounting Officer)
* Trustee
Thomas G. Bigley
* Trustee
John T. Conroy, Jr.
* Trustee
William J. Copeland
* Trustee
James E. Dowd
* Trustee
Lawrence D. Ellis, M.D.
* Trustee
Edward L. Flaherty, Jr.
* Trustee
Peter E. Madden
* Trustee
Gregor F. Meyer
* Trustee
John E. Murray, Jr., J.D., S.J.D.
* Trustee
Wesley W. Posvar
* Trustee
Marjorie P. Smuts
1* By: /s/ S. Elliott Cohan
Attorney in Fact
Exhibit 12
Dickstein Shapiro Morin & Oshinsky LLP
2101 L Street, NW
Washington, DC 20037-1526
Tel: (202) 785-9700 * Fax: (202) 887-0689
May 30, 1997
Municipal Securities Income Trust, on behalf of its portfolio,
Federated Pennsylvania Municipal Income Fund
Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
William Penn Interest Income Fund, on behalf of its portfolio,
Pennsylvania Tax-Free Income Portfolio
2650 Westview Drive
Wyomissing, Pennsylvania 19610
Ladies and Gentlemen:
You have requested our opinion concerning certain federal income
tax consequences of a transaction (the "Reorganization") in which all of
the assets of Pennsylvania Tax-Free Income Portfolio (the "Acquired Fund"),
a portfolio of William Penn Interest Income Fund, a Pennsylvania common law
trust (the "Pennsylvania Trust"), will be acquired by Municipal Securities
Income Trust, a Massachusetts business trust (the "Trust"), on behalf of
its portfolio, Federated Pennsylvania Municipal Income Fund (the "Acquiring
Fund"), in exchange solely for Class A Shares of the Acquiring Fund (the
"Acquiring Fund Shares"), and the assumption by the Acquiring Fund of
certain liabilities of the Acquired Fund. The Acquiring Fund Shares will
thereafter be distributed to the shareholders of the Acquired Fund (the
Municipal Securities Income Trust
May 30, 1997
Page 2
"Acquired Fund Shareholders") in liquidation of the Acquired Fund. The
terms and conditions of this transaction are set forth in an Agreement and
Plan of Reorganization dated March 24, 1997 between the Trust, on behalf of
the Acquiring Fund, and the Pennsylvania Trust, on behalf of the Acquired
Fund (the "Agreement"). This opinion is rendered to you pursuant to
paragraph 8.5 of the Agreement.
Both the Trust and the Pennsylvania Trust are open-end, management
investment companies which qualify as regulated investment companies
described in Section 851(a) of the Internal Revenue Code of 1986, as
amended (the "Code"). The Acquired Fund and the Acquiring Fund are engaged
in the business of investing in professionally managed portfolios of
Pennsylvania municipal securities.
We have reviewed and relied upon the Registration Statement on Form
N-14 (the "Registration Statement") filed with the Securities and Exchange
Commission (the "Commission") in connection with the Reorganization, the
certificates provided to us by the Trust and the Pennsylvania Trust in
connection with the rendering of this opinion, and such other documents and
instruments as we have deemed necessary for the purposes of this opinion.
Based upon and subject to the foregoing, and assuming that the
Reorganization will take place as described in the Agreement, we are of the
opinion that, for federal income tax purposes:
The transfer of all of the Acquired Fund assets in exchange
solely for the Acquiring Fund Shares and the assumption by the Acquiring
Fund of certain liabilities of the Acquired Fund, and the distribution of
the Acquiring Fund Shares to the Acquired Fund Shareholders in liquidation
OP4.EDG; 700277
Municipal Securities Income Trust
May 30, 1997
Page 3
of the Acquired Fund will constitute a "reorganization" within the meaning
of Section 368(a)(1)(C) of the Code;
No gain or loss will be recognized by the Acquiring Fund
upon the receipt of the assets of the Acquired Fund in exchange solely for
the Acquiring Fund Shares and the assumption by the Acquiring Fund of
certain liabilities of the Acquired Fund;
No gain or loss will be recognized by the Acquired Fund
upon the transfer of the Acquired Fund assets to the Acquiring Fund in
exchange solely for the Acquiring Fund Shares and the assumption by the
Acquiring Fund of certain liabilities of the Acquired Fund, or upon the
distribution (whether actual or constructive) of the Acquiring Fund Shares
to the Acquired Fund Shareholders in exchange for their shares of the
Acquired Fund;
No gain or loss will be recognized by the Acquired Fund
Shareholders upon the exchange of their Acquired Fund shares for the
Acquiring Fund Shares;
The tax basis of the Acquired Fund assets acquired by the
Acquiring Fund will be the same as the tax basis of such assets to the
Acquired Fund immediately prior to the Reorganization;
The tax basis of the Acquiring Fund Shares received by each
of the Acquired Fund Shareholders pursuant to the Reorganization will be
the same as the tax basis of the Acquired Fund shares held by such
shareholder immediately prior to the Reorganization;
OP4.EDG; 700277
Municipal Securities Income Trust
May 30, 1997
Page 4
The holding period of the assets of the Acquired Fund in
the hands of the Acquiring Fund will include the period during which those
assets were held by the Acquired Fund; and
The holding period of the Acquiring Fund Shares received by
each Acquired Fund Shareholder will include the period during which the
Acquired Fund shares exchanged therefor were held by such shareholder
(provided the Acquired Fund shares were held as capital assets on the date
of the Reorganization).
This opinion is expressed as of the date hereof and is based upon
the Code, Treasury regulations promulgated thereunder, administrative
positions of the Internal Revenue Service (the "Service"), and judicial
decisions, all of which are subject to change either prospectively or
retroactively. There can be no assurance that changes in the law will not
take place which could affect the opinions expressed herein or that
contrary positions may not be taken by the Service. We disclaim any
undertaking to advise you with respect to any event subsequent to the date
hereof.
The opinions contained herein are limited to those matters
expressly covered; no opinion is to be implied in respect of any other
matter. This opinion is addressed solely to you and may not be relied upon
by any other person without our prior written consent. We hereby consent
to the filing of a copy of this opinion with the Commission as an exhibit
to the Registration Statement, and to the references to this firm and this
opinion in the Prospectus/Proxy Statement which is contained in the
Registration Statement.
OP4.EDG; 700277
Municipal Securities Income Trust
May 30, 1997
Page 5
Very truly yours,
/s/ Dickstein Shapiro Morin & Oshinsky LLP
Exhibit 14.1
INDEPENDENT AUDITORS' CONSENT
To the Board of Trustees of MUNICIPAL SECURITIES INCOME TRUST and
Shareholders of FEDERATED PENNSYLVANIA MUNICIPAL INCOME FUND:
We consent to the incorporation by reference in Post-Effective Amendment
No. 1 to this Registration Statement on Form N-14 of Federated Pennsylvania
Municipal Income Fund (a portfolio of the Municipal Securities Income
Trust) of our report dated October 11, 1996, appearing in the Annual Report
of Federated Pennsylvania Municipal Income Fund for the year ended August
31, 1996, included in the Prospectus of Federated Pennsylvania Municipal
Income Fund for the year ended August 31, 1996, dated March 4, 1997, and to
the references to us within this Registration Statement.
BY:/s/ Deloitte & Touche LLP
Deloitte & Touche LLP
Pittsburgh, Pennsylvania
June 4, 1997
Exhibit 14.2
INDEPENDENT AUDITOR'S CONSENT
We consent to the incorporation by reference in Post-Effective Amendment
No. 1 to the Registration Statement on Form N-14 ("Registration Statement")
of Federated Pennsylvania Municipal Income Fund, a portfolio of Municipal
Securities Income Trust, of our report dated January 19, 1996, appearing in
the Annual Report of Pennsylvania Tax-Free Income Portfolio, a portfolio of
William Penn Interest Income Fund, for the year ended December 31, 1995,
and to the incorporation by reference of such report in the Prospectus and
Statement of Additional Information of Pennsylvania Tax-Free Income
Portfolio, a portfolio of William Penn Interest Income Fund, dated
March 15, 1996, and the incorporation by reference in Post-Effective
Amendment No. 1 to the Registration Statement of Federated Pennsylvania
Municipal Income Fund, a portfolio of Municipal Securities Income Trust, of
our report dated January 22, 1997, appearing in the Annual Report of
Pennsylvania Tax-Free Income Portfolio, a portfolio of William Penn
Interest Income Fund, for the year ended December 31, 1996.
By:/s/ ERNST & YOUNG LLP
Ernst & Young LLP
Reading, PA
June 2, 1997
