FEDERATED MICHIGAN INTERMEDIATE MUNICIPAL TRUST
(A Portfolio of Municipal Securities Income Trust)
Supplement to Prospectus and Statement of Additional Information, as
appropriate, dated October 31, 1998
I. At the June 25, 1999 shareholder meeting, shareholders approved the
following changes to become effective July 1, 1999:
1. Elected six Trustees.
2. Ratified the selection of the Trust's independent
auditors.
3. Made changes to the Fund's fundamental investment
policies:
a. Amended the Fund's fundamental investment policy
regarding borrowing money and issuing senior
securities to read as follows:
"The Fund may borrow money, directly or
indirectly, and issue senior securities to the
maximum extent permitted under the 1940 Act."
b. Amended the Fund's fundamental investment policy
regarding investments in real estate to read as
follows:
"The Fund may not purchase or sell real
estate, provided that this restriction does not
prevent the Fund from investing in issuers which
invest, deal, or otherwise engage in
transactions in real estate or interests
therein, or investing in securities that are
secured by real estate or interest therein. The
Fund may exercise its rights under agreements
relating to such securities, including the right
to enforce security interests and to hold real
estate acquired by reason of such enforcement
until that real estate can be liquidated in an
orderly manner."
c. Amended the Fund's fundamental investment policy
regarding investments in commodities to read as
follows:
"The Fund may not purchase or sell physical
commodities, provided that the Fund may purchase
securities of companies that deal in
commodities.
For purposes of this restriction, as a matter
of non-fundamental policy, investments in
transactions involving futures contracts and
options, forward currency contracts, swap
transactions and other financial contracts that
settle by payment of cash are not deemed to be
investments in commodities."
d. Amended the Fund's fundamental investment policy
regarding underwriting securities to read as follows:
"The Fund may not underwrite the securities of
other issuers, except that the Fund may engage
in transactions involving the acquisition,
disposition or resale of its portfolio
securities, under circumstances where it may be
considered to be an underwriter under the
Securities Act of 1933."
e. Amended the Fund's fundamental investment policy
regarding lending by the Funds to read as follows:
"The Fund may not make loans, provided that
this restriction does not prevent the Fund from
purchasing debt obligations, entering into
repurchase agreements, lending its assets to
broker/dealers or institutional investors and
investing in loans, including assignments and
participation interests."
f. Amended the Fund's fundamental investment policy
regarding concentration of the Funds'
investments in the securities of companies in
the same industry to read as follows:
"The Fund will not make investments that will
result in the concentration of its investments
in the securities of issuers primarily engaged
in the same industry. Government securities,
municipal securities and bank instruments will
not be deemed to constitute an industry.
To conform to the current view of the SEC that
only domestic bank instruments may be excluded
from industry concentration limitations, as a
matter of non-fundamental policy, the Fund will
not exclude foreign bank instruments from
industry concentration limits as long as the
policy of the SEC remains in effect. As a
non-fundamental operating policy, the Fund will
consider concentration to be the investment of
more than 25% of the value of its total assets
in any one industry."
g. Amended, and made non-fundamental, the Fund's
fundamental investment policy regarding buying
securities on margin to read as follows:
"The Fund will not purchase securities on
margin, provided that the Fund may obtain
short-term credits necessary for the clearance
of purchases and sales of securities, and
further provided that the Fund may make margin
deposits in connection with its use of financial
options and futures, forward and spot currency
contracts, swap transactions and other financial
contracts or derivative instruments."
h. Amended, and made non-fundamental, the Fund's
fundamental investment policy regarding pledging
assets to read as follows:
"The Fund will not mortgage, pledge, or
hypothecate any of its assets, provided that
this shall not apply to the transfer of
securities in connection with any permissible
borrowing or to collateral arrangements in
connection with permissible activities."
i. Amended, and made non-fundamental, the Fund's
fundamental investment policy regarding
investing in illiquid securities to read as
follows:
"The Fund will not purchase securities for which
there is no readily available market, or enter
into repurchase agreements or purchase time
deposits maturing in more than seven days, if
immediately after and as a result, the value of
such securities would exceed, in the aggregate,
15% of the Funds' net assets."
4. Eliminated certain of the Fund's fundamental investment
policies:
a. Removed the Fund's fundamental investment policy
regarding selling securities short;
b. Removed the Fund's fundamental investment policy
regarding dealing in puts, call, straddles,
spreads and any combination thereof; and
c. Removed the Fund's fundamental investment policy
regarding investing in restricted securities.
5. Approved an amendment and restatement to the Trust's
Declaration of Trust to permit the Board of Trustees
to liquidate assets of the Trust without seeking
shareholder approval.
II. The following actions were taken by the Board of Trustees with regard to
non- fundamental investment policies.
1. Approved revisions to the Fund's non-fundamental
investment limitations to read as follows:
"The Fund may purchase and sell interest rate and index
financial futures contracts."
2. Approved the addition of a non-fundamental investment
policy as follows:
"In applying the Fund's concentration restriction, (a)
utility companies will be divided according to their
services, for example, gas, gas transmission, electric and
telephone will each be considered a separate industry; (b)
financial service companies will be classified according to
the end users of their services, for example, automobile
finance, bank finance and diversified finance will each be
considered a separate industry; and (c) asset-backed
securities will be classified according to the underlying
assets securing such securities."
3. Approved the elimination of the Fund's
non-fundamental investment policy pertaining to
when-issued and delayed delivery transactions that
provides that the Fund will not engage in such
transactions to an extent that would cause the
segregation of more than 20% of the value of its
total assets.
June 25, 1999
Cusip 625922703
G02650-05 (6/99)
FEDERATED OHIO MUNICIPAL INCOME FUND
(A Portfolio of Municipal Securities Income Trust)
Supplement to Prospectus and Statement of Additional Information, as
appropriate, dated October 31, 1998
I. At the June 25, 1999 shareholder meeting, shareholders approved the
following changes to become effective July 1, 1999:
1. Elected six Trustees.
2. Ratified the selection of the Trust's independent
auditors.
3. Made changes to the Fund's fundamental investment
policies:
a. Amended the Fund's fundamental investment policy
regarding borrowing money and issuing senior
securities to read as follows:
"The Fund may borrow money, directly or
indirectly, and issue senior securities to the
maximum extent permitted under the 1940 Act."
b. Amended the Fund's fundamental investment policy
regarding investments in real estate to read as
follows:
"The Fund may not purchase or sell real
estate, provided that this restriction does not
prevent the Fund from investing in issuers which
invest, deal, or otherwise engage in
transactions in real estate or interests
therein, or investing in securities that are
secured by real estate or interest therein. The
Fund may exercise its rights under agreements
relating to such securities, including the right
to enforce security interests and to hold real
estate acquired by reason of such enforcement
until that real estate can be liquidated in an
orderly manner."
c. Amended the Fund's fundamental investment policy
regarding investments in commodities to read as
follows:
"The Fund may not purchase or sell physical
commodities, provided that the Fund may purchase
securities of companies that deal in
commodities.
For purposes of this restriction, as a matter
of non-fundamental policy, investments in
transactions involving futures contracts and
options, forward currency contracts, swap
transactions and other financial contracts that
settle by payment of cash are not deemed to be
investments in commodities."
d. Amended the Fund's fundamental investment policy
regarding underwriting securities to read as follows:
"The Fund may not underwrite the securities of
other issuers, except that the Fund may engage
in transactions involving the acquisition,
disposition or resale of its portfolio
securities, under circumstances where it may be
considered to be an underwriter under the
Securities Act of 1933."
e. Amended the Fund's fundamental investment policy
regarding lending by the Funds to read as follows:
"The Fund may not make loans, provided that
this restriction does not prevent the Fund from
purchasing debt obligations, entering into
repurchase agreements, lending its assets to
broker/dealers or institutional investors and
investing in loans, including assignments and
participation interests."
f. Amended the Fund's fundamental investment policy
regarding concentration of the Funds'
investments in the securities of companies in
the same industry to read as follows:
"The Fund will not make investments that will
result in the concentration of its investments
in the securities of issuers primarily engaged
in the same industry. Government securities,
municipal securities and bank instruments will
not be deemed to constitute an industry.
To conform to the current view of the SEC that
only domestic bank instruments may be excluded
from industry concentration limitations, as a
matter of non-fundamental policy, the Fund will
not exclude foreign bank instruments from
industry concentration limits as long as the
policy of the SEC remains in effect. As a
non-fundamental operating policy, the Fund will
consider concentration to be the investment of
more than 25% of the value of its total assets
in any one industry."
g. Amended, and made non-fundamental, the Fund's
fundamental investment policy regarding buying
securities on margin to read as follows:
"The Fund will not purchase securities on
margin, provided that the Fund may obtain
short-term credits necessary for the clearance
of purchases and sales of securities, and
further provided that the Fund may make margin
deposits in connection with its use of financial
options and futures, forward and spot currency
contracts, swap transactions and other financial
contracts or derivative instruments."
h. Amended, and made non-fundamental, the Fund's
fundamental investment policy regarding pledging
assets to read as follows:
"The Fund will not mortgage, pledge, or
hypothecate any of its assets, provided that
this shall not apply to the transfer of
securities in connection with any permissible
borrowing or to collateral arrangements in
connection with permissible activities."
4. Eliminated certain of the Fund's fundamental investment
policies:
a. Removed the Fund's fundamental investment policy
regarding selling securities short;
b. Removed the Fund's fundamental investment policy
regarding dealing in puts, call, straddles,
spreads and any combination thereof; and
c. Removed the Fund's fundamental investment policy
regarding investing in restricted securities.
5. Approved an amendment and restatement to the Trust's
Declaration of Trust to permit the Board of Trustees
to liquidate assets of the Trust without seeking
shareholder approval.
<PAGE>
II. The following actions were taken by the Board of Trustees with regard to
non- fundamental investment policies.
1. Approved revisions to the Fund's non-fundamental
investment limitations to read as follows:
a. "The Fund will not purchase securities
for which there is no readily available
market, or enter into repurchase
agreements or purchase time deposits
maturing in more than seven days, if
immediately after and as a result, the
value of such securities would exceed,
in the aggregate, 15% of the Fund's net
assets;
and,
b. The Fund may purchase and sell interest rate and
index financial futures contracts."
2. Approved the addition of a non-fundamental investment
policy as follows:
"In applying the Fund's concentration restriction, (a)
utility companies will be divided according to their
services, for example, gas, gas transmission, electric and
telephone will each be considered a separate industry; (b)
financial service companies will be classified according to
the end users of their services, for example, automobile
finance, bank finance and diversified finance will each be
considered a separate industry; and (c) asset-backed
securities will be classified according to the underlying
assets securing such securities."
3. Approved the elimination of the Fund's
non-fundamental investment policy pertaining to
when-issued and delayed delivery transactions that
provides that the Fund will not engage in such
transactions to an extent that would cause the
segregation of more than 20% of the value of its
total assets.
June 25, 1999
Cusip 625922307
G02650-07 (6/99)
FEDERATED PENNSYLVANIA MUNICIPAL INCOME FUND
(A Portfolio of Municipal Securities Income Trust)
Supplement to Prospectus and Statement of Additional Information, as
appropriate, dated October 31, 1998
I. At the June 25, 1999 shareholder meeting, shareholders approved the
following changes to become effective July 1, 1999:
1. Elected six Trustees.
2. Ratified the selection of the Trust's independent
auditors.
3. Made changes to the Fund's fundamental investment
policies:
a. Amended the Fund's fundamental investment policy
regarding borrowing money and issuing senior
securities to read as follows:
"The Fund may borrow money, directly or
indirectly, and issue senior securities to the
maximum extent permitted under the 1940 Act."
b. Amended the Fund's fundamental investment policy
regarding investments in real estate to read as
follows:
"The Fund may not purchase or sell real
estate, provided that this restriction does not
prevent the Fund from investing in issuers which
invest, deal, or otherwise engage in
transactions in real estate or interests
therein, or investing in securities that are
secured by real estate or interest therein. The
Fund may exercise its rights under agreements
relating to such securities, including the right
to enforce security interests and to hold real
estate acquired by reason of such enforcement
until that real estate can be liquidated in an
orderly manner."
c. Amended the Fund's fundamental investment policy
regarding investments in commodities to read as
follows:
"The Fund may not purchase or sell physical
commodities, provided that the Fund may purchase
securities of companies that deal in
commodities.
For purposes of this restriction, as a matter
of non-fundamental policy, investments in
transactions involving futures contracts and
options, forward currency contracts, swap
transactions and other financial contracts that
settle by payment of cash are not deemed to be
investments in commodities."
d. Amended the Fund's fundamental investment policy
regarding underwriting securities to read as follows:
"The Fund may not underwrite the securities of
other issuers, except that the Fund may engage
in transactions involving the acquisition,
disposition or resale of its portfolio
securities, under circumstances where it may be
considered to be an underwriter under the
Securities Act of 1933."
e. Amended the Fund's fundamental investment policy
regarding lending by the Funds to read as follows:
"The Fund may not make loans, provided that
this restriction does not prevent the Fund from
purchasing debt obligations, entering into
repurchase agreements, lending its assets to
broker/dealers or institutional investors and
investing in loans, including assignments and
participation interests."
f. Amended the Fund's fundamental investment policy
regarding concentration of the Funds'
investments in the securities of companies in
the same industry to read as follows:
"The Fund will not make investments that will
result in the concentration of its investments
in the securities of issuers primarily engaged
in the same industry. Government securities,
municipal securities and bank instruments will
not be deemed to constitute an industry.
To conform to the current view of the SEC that
only domestic bank instruments may be excluded
from industry concentration limitations, as a
matter of non-fundamental policy, the Fund will
not exclude foreign bank instruments from
industry concentration limits as long as the
policy of the SEC remains in effect. As a
non-fundamental operating policy, the Fund will
consider concentration to be the investment of
more than 25% of the value of its total assets
in any one industry."
g. Amended, and made non-fundamental, the Fund's
fundamental investment policy regarding buying
securities on margin to read as follows:
"The Fund will not purchase securities on
margin, provided that the Fund may obtain
short-term credits necessary for the clearance
of purchases and sales of securities, and
further provided that the Fund may make margin
deposits in connection with its use of financial
options and futures, forward and spot currency
contracts, swap transactions and other financial
contracts or derivative instruments."
h. Amended, and made non-fundamental, the Fund's
fundamental investment policy regarding pledging
assets to read as follows:
"The Fund will not mortgage, pledge, or
hypothecate any of its assets, provided that
this shall not apply to the transfer of
securities in connection with any permissible
borrowing or to collateral arrangements in
connection with permissible activities."
4. Eliminated certain of the Fund's fundamental investment
policies:
a. Removed the Fund's fundamental investment policy
regarding selling securities short;
b. Removed the Fund's fundamental investment policy
regarding dealing in puts, call, straddles,
spreads and any combination thereof; and
c. Removed the Fund's fundamental investment policy
regarding investing in restricted securities.
5. Approved an amendment and restatement to the Trust's
Declaration of Trust to permit the Board of Trustees
to liquidate assets of the Trust without seeking
shareholder approval.
<PAGE>
II. The following actions were taken by the Board of Trustees with regard to
non- fundamental investment policies.
1. Approved revisions to the Fund's non-fundamental
investment limitations to read as follows:
a. "The Fund will not purchase securities
for which there is no readily available
market, or enter into repurchase
agreements or purchase time deposits
maturing in more than seven days, if
immediately after and as a result, the
value of such securities would exceed,
in the aggregate, 15% of the Fund's net
assets;
and,
b. The Fund may purchase and sell interest rate and
index financial futures contracts."
2. Approved the addition of a non-fundamental investment
policy as follows:
"In applying the Fund's concentration restriction, (a)
utility companies will be divided according to their
services, for example, gas, gas transmission, electric and
telephone will each be considered a separate industry; (b)
financial service companies will be classified according to
the end users of their services, for example, automobile
finance, bank finance and diversified finance will each be
considered a separate industry; and (c) asset-backed
securities will be classified according to the underlying
assets securing such securities."
3. Approved the elimination of the Fund's
non-fundamental investment policy pertaining to
when-issued and delayed delivery transactions that
provides that the Fund will not engage in such
transactions to an extent that would cause the
segregation of more than 20% of the value of its
total assets.
4. Approved the elimination of the following undertaking:
"The Fund has no present intent to borrow money or pledge securities in excess
of 5% of the value of its net assets."
June 25, 1999
Cusip 625922505
Cusip 625922836
G02650-08 (6/99)
