Merrill Lynch U.S. Treasury Money Fund
Supplement dated September 26, 2000 to the Prospectus dated March 9, 2000
Financial Data Services, Inc. (FDS), the transfer agent for Merrill Lynch
U.S. Treasury Money Fund (the Fund) has updated the systems on which the
Fund's records are kept. This Supplement briefly outlines certain changes to
the Fund's operations resulting from the systems update.
o Dividend Distributions -Previously, dividend distributions were declared
and paid daily. Effective September 29, 2000, dividend distributions will
be declared daily and paid monthly. Dividends that are declared but unpaid
will remain in the gross assets of the Fund and will therefore continue
to earn income for the Fund's shareholders. Accordingly, this change will
not materially affect the amount of dividends earned by shareholders during
any given period. After September 29, 2000, FDS can no longer issue
distribution checks for investment accounts held at a branch office.
Those dividends that are not automatically reinvested will be credited to
your Merrill Lynch account. Should you determine you prefer receiving a
physical check please contact your Merrill Lynch Financial Consultant to
establish standing instructions best suited to meet your needs.
o Automatic Investment Plan- You may invest a specific amount on a periodic
basis through certain Merrill Lynch investment or central asset accounts.
Should you wish to purchase the Fund through the Automatic Investment
Program (AIP) after October 31, 2000, and your account is not held directly
at FDS, please contact your Financial Consultant to discuss the various
options now available to you.
o Systematic Withdrawal Plan - You may choose to receive systematic payment
from your Fund account on a periodic basis. If you wish to redeem the
Fund through the Systematic Withdrawal Program (SWP) after October 31,
2000, and your account is not held directly at FDS you will need to contact
your Financial Consultant to discuss the options now available to you.
Redemptions via SWP for accounts maintained at a branch office will no
longer receive a check generated from FDS. Instead, when SWP redemptions
occur, the cash will credit directly to your Merrill Lynch investment
account. In the event you wish to continue to receive a check, please
contact your Financial Consultant to establish instructions to have a check
issued to you.
o Purchase Orders - Purchase orders for which remittance is to be made by
check may be submitted by mail or otherwise to your Merrill Lynch Branch
Office. Purchase orders for accounts maintained directly at the Transfer
Agency, should be sent directly to FDS. Purchases into the Fund will now
begin to earn dividends on the business day following trade date.
Previously, all purchase trades earned dividends two business days
following trade date.
o Check Redemptions - Effective September 29, 2000, redemption of the
Fund by check will now earn dividends up until the day prior to the day
the check clears. Previously, redemption of the Fund by check earned
dividends until the day the check cleared.
Should you have any questions, please contact one of our Client Service
Representatives at the following toll-free number 1-800-221-7210.
