<PAGE>
Rule 497(b)
Registration No. 33-42770
<PAGE>
CUSIPS: 63701H748R;63701H755R;63701H763R MAIL CODE A
Prospectus--PART A
NOTE: PART A of this Prospectus may not be distributed unless accompanied by
Part B.
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NATIONAL MUNICIPAL TRUST
Series 145
NMT Multistate Series 47
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The initial public offering of Units in each Trust has been completed. The Units
offered hereby are issued and outstanding Units which have been acquired by the
Sponsor either by purchase from the Trustee of Units tendered for redemption or
in the secondary market.
The objectives of each Trust are the providing of interest income which, in the
opinion of counsel is, under existing law, excludable from gross income for
Federal income tax purposes (except in certain instances depending on the Unit
Holder), through investment in a fixed portfolio consisting primarily of
long-term state, municipal and public authority debt obligations, and the
conservation of capital. In addition, in the opinion of bond counsel to the
issuers of the obligations, the interest income on the obligations held by the
underlying unit investment trusts composing Multistate Series 47 designated as
the California Trust (Insured) and the New York Trust (Insured) (the
``California Trust (Insured)'' and the ``New York Trust (Insured)'',
collectively the ``State Trusts'', or singularly, the ``State Trust'') (the
``Trusts'' or the ``Trust'' or in the case of the California Trust (Insured) and
the New York Trust (Insured) the ``Insured Trusts'' or the ``Insured Trust'' as
the context requires), is exempt from state and any local income taxes to
individual Unit Holders resident in the State for which the State Trust is
named. There is, of course, no guarantee that the Trusts' objectives will be
achieved. The value of the Units of each Trust will fluctuate with the value of
the portfolio of underlying Securities. Each municipal bond in an Insured Trust
is covered by an irrevocable insurance policy as a result of which the Units of
each Insured Trust were rated AAA by Standard & Poor's Corporation as of the
Date of Deposit. Insurance guaranteeing the scheduled payment of principal of
and interest on the securities in the California Trust (Insured) and the New
York Trust (Insured) to the maturity of such Securities has been obtained at the
cost of the issuer at the time of issuance. No representation is made as to the
insurers' ability to meet their commitments. The Securities in Series 145 are
not insured. The Securities in the Trusts are not insured by The Prudential
Insurance Company of America. The Prospectus indicates the extent to which
interest income of each Trust is subject to alternative minimum tax under the
Tax Reform Act of 1986, as amended. 55.8% of the estimated annual income of the
National Trust is subject to alternative minimum tax. See ``Schedule of
Portfolio Securities'' and ``Portfolio Summary''.
Minimum Purchase: 1 Unit
PUBLIC OFFERING PRICE of the Units of each Trust is equal to the aggregate bid
side evaluation of the underlying Securities in each Trust's Portfolio divided
by the number of Units outstanding in such Trust, plus a sales charge as set
forth in the table herein. (See Part B--``Public Offering of Units--Volume
Discount.'') Units are offered at the Public Offering Price plus accrued
interest. (See Part B--``Public Offering of Units.'')
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Sponsor:
Prudential Securities (LOGO)
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE COMMISSION OR
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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Please read and retain Prospectus dated
this Prospectus for future reference April 30, 1996
<PAGE>
NATIONAL MUNICIPAL TRUST
Series 145
Multistate Series 47
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TABLE OF CONTENTS
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<TABLE>
<S> <C> <C>
Page
Summary................................................................................. Part A A-i
Summary of Essential Information........................................................ A-vii
Independent Auditors' Report............................................................ A-1
Statement of Financial Condition........................................................ A-2
Schedule of Portfolio Securities........................................................ A-7
The Trust............................................................................... Part B 1
Portfolio Summary................................................................. 2
Insurance on the Securities in the Portfolio of an Insured Trust--General......... 9
Insurance on the Securities in the Portfolio of an Insured Trust--Insured to 12
Maturity...........................................................................
Insurance on the Securities in the Portfolio of an Insured Trust--Insurers........ 13
Objectives and Securities Selection............................................... 15
The Units......................................................................... 16
Estimated Annual Income Per Unit.................................................. 16
Tax Status.............................................................................. 17
Insured Prudential Unit Trusts--Date of Deposits after April 2, 1986 and National
Municipal Trusts................................................................ 20
Public Offering of Units................................................................ 20
Public Offering Price............................................................. 20
Public Distribution............................................................... 21
Secondary Market.................................................................. 21
Profit of Sponsor................................................................. 22
Volume Discount................................................................... 22
Employee Discount................................................................. 23
Exchange Option......................................................................... 23
Tax Consequences.................................................................. 24
Reinvestment Program.................................................................... 24
Expenses and Charges.................................................................... 24
Fees.............................................................................. 24
Other Charges..................................................................... 25
Rights of Unit Holders.................................................................. 25
Certificates...................................................................... 25
Distribution of Interest and Principal............................................ 26
Reports and Records............................................................... 27
Redemption........................................................................ 28
Sponsor................................................................................. 29
Limitations on Liability.......................................................... 29
Responsibility.................................................................... 29
Resignation....................................................................... 30
Trustee................................................................................. 30
Limitations on Liability.......................................................... 30
Responsibility.................................................................... 31
Resignation....................................................................... 31
Evaluator............................................................................... 31
Limitations on Liability.......................................................... 31
Responsibility.................................................................... 31
Resignation....................................................................... 31
Amendment and Termination of the Indenture.............................................. 31
Amendment......................................................................... 31
Termination....................................................................... 32
Legal Opinions.......................................................................... 32
Auditors................................................................................ 32
Bond Ratings............................................................................ 33
</TABLE>
<PAGE>
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This Prospectus does not contain all of the information with respect to the
investment company set forth in its registration statement and exhibits relating
thereto which have been filed with the Securities and Exchange Commission,
Washington, D.C. under the Securities Act of 1933 and the Investment Company Act
of 1940, and to which reference is hereby made.
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No person is authorized to give any information or to make any representations
with respect to this investment company not contained herein; and any
information or representations not contained herein must not be relied upon as
having been authorized. This Prospectus does not constitute an offer to sell, or
a solicitation of an offer to buy, securities in any state to any person to whom
it is not lawful to make such offer in such state.
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SUMMARY
National Municipal Trust, Series 145 (``National Trust (Uninsured)'') and
Multistate Series 47 which consists of two separate underlying unit investment
trusts designated as the California Trust (Insured) and the New York Trust
(Insured) (the ``California Trust (Insured)'' and the ``New York Trust
(Insured)'', collectively, the ``State Trusts'', or singularly, the ``State
Trust'') (the ``Trusts'' or the ``Trust'' or in the case of the California Trust
(Insured) and the New York Trust (Insured) the ``Insured Trusts'' or the
``Insured Trust'' as the context requires) are composed of interest-bearing
municipal bonds (the ``Securities''). The Securities in the State Trusts are
issued primarily by or on behalf of the State for which the State Trust is named
and counties, municipalities, authorities and political subdivisions thereof.
The interest on these bonds, in the opinion of bond counsel to the issuing
governmental authorities is, under existing law, excludable from gross income
for Federal income tax purposes (except in certain instances depending on the
Unit Holder) and, as respects the underlying State Trusts, exempt from State and
any local income taxes to individual Unit Holders resident in the State for
which the State Trust is named.
INSURANCE guaranteeing the scheduled payments of principal of and interest
on the Securities in the portfolios of the Insured Trusts has been obtained by
the issuer at the cost of the issuer at the time of issuance of the Securities
from AMBAC Indemnity Corporation (``AMBAC''), Financial Security Assurance
(``FSA''), MBIA Insurance Corporation (``MBIA''), Municipal Bond Investors
Assurance Corporation (``MBIAC''), and/or Financial Guaranty Insurance Company
(``Financial Guaranty'' or ``FGIC'') (singularly, each an ``Insurance Company''
and, collectively, the ``Insurance Companies''). (See Part B--``The
Trust--Insurance on the Securities in the Portfolio of an Insured Trust''). As a
result of the insurance, the Securities and the Units of each Insured Trust have
received a rating of AAA by Standard & Poor's Corporation. There can be no
assurance that Units of the Insured Trusts will retain this AAA rating. There
is, of course, no guarantee that the objectives of the Insured Trusts will be
achieved since an issuer may be unable to meet its principal and interest
payment obligations and, in such event, the Insurance Company involved may be
unable to satisfy its insurance obligation. Insurance is not a substitute for
the basic credit of an issuer, but supplements the issuer's existing credit and
provides additional security therefor. NO REPRESENTATION IS MADE AS TO THE
ABILITY OF THE INSURANCE COMPANIES TO MEET THEIR COMMITMENTS.
On December 20, 1995, Capital Guaranty Corporation merged with a subsidiary
of Financial Security Assurance Holdings Ltd. In connection with such merger,
(i) CGIC, the principal operating subsidiary of Capital Guaranty Corporation,
became a wholly-owned subsidiary of FSA, the principal operating subsidiary of
Financial Security Assurance Holdings Ltd., and (ii) the corporate name of CGIC
was changed to Financial Security Assurance of Maryland Inc.
MONTHLY DISTRIBUTIONS of principal, premium, if any, and interest received
by each Trust will be made on or shortly after the twenty-fifth day of each
month to Unit Holders of record as of the immediately preceding Record Date.
(See Part B--``Rights of Unit Holders--Distribution of Interest and
Principal''.) Alternatively, Unit Holders may elect to have their distributions
reinvested in the Reinvestment Program of the Sponsor, as, if and when such
program is available to Unit Holders. (See Part B--``Reinvestment Program.'')
THE SPONSOR, although not obligated to do so, presently intends to maintain
a secondary market for the Units in each Trust based on the aggregate bid side
evaluation of the underlying Securities, as more fully described under Part
B--``Public Offering of Units--Secondary Market--Public Offering Price.'' If
such a market is not maintained, a Unit Holder may be able to dispose of his
Units only through redemption at prices based on the aggregate bid side
evaluation of the underlying Securities. (See Part B--``Rights of Unit
Holders--Redemption--Computation of Redemption Price per Unit.'')
A-i
<PAGE>
On October 21, 1993, Prudential Securities Incorporated entered into an
omnibus settlement with the Securities and Exchange Commission (``SEC''), state
securities regulators (with the exception of the Texas Securities Commissioner
who joined the settlement on January 18, 1994) and the National Association of
Securities Dealers, Inc. (``NASD'') to resolve allegations that from 1980
through 1990 Prudential Securities Incorporated sold certain limited partnership
interests in violation of securities laws to persons for whom such securities
were not suitable and misrepresented the safety, potential returns and liquidity
of these investments. Without admitting or denying the allegations asserted
against it, Prudential Securities Incorporated consented to the entry of an SEC
Administrative Order which stated that the conduct of Prudential Securities
Incorporated violated the federal securities laws, directed Prudential
Securities Incorporated to cease and desist from violating the federal
securities laws, pay civil penalties, and adopt certain remedial measures to
address the violations.
Pursuant to the terms of the SEC settlement, Prudential Securities
Incorporated agreed to the imposition of a $10,000,000 civil penalty,
established a settlement fund in the amount of $330,000,000 and procedures to
resolve legitimate claims for compensatory damages by purchasers of the
partnership interests. Prudential Securities Incorporated has agreed to provide
additional funds, if necessary, for the purpose of the settlement fund. The
settlement with the state securities regulators included an agreement to pay a
penalty of $500,000 per jurisdiction. Prudential Securities Incorporated
consented to a censure and to the payment of a $5,000,000 fine in settling the
NASD action.
In October 1994, a criminal complaint was filed with the United States
Magistrate for the Southern District of New York alleging that Prudential
Securities Incorporated committed fraud in connection with the sale of certain
limited partnership interests in violation of federal securities laws. An
agreement was simultaneously filed to defer prosecution of these charges for a
period of three years from the signing of the agreement, provided that
Prudential Securities Incorporated complies with the terms of the agreement. If,
upon completion of the three year period, Prudential Securities Incorporated has
complied with the terms of the agreement, no prosecution will be instituted by
the United States for the offenses charged in the complaint. If on the other
hand, during the course of the three year period, Prudential Securities
Incorporated violates the terms of the agreement, the U.S. Attorney can then
elect to pursue these charges. Under the terms of the agreement, Prudential
Securities Incorporated agreed, among other things, to pay an additional
$330,000,000 into the fund established by the SEC to pay restitution to
investors who purchased certain Prudential Securities Incorporated limited
partnership interests.
SPECIAL CONSIDERATIONS. An investment in Units of each Trust should be made
with an understanding of the risks which an investment in fixed rate long-term
debt obligations may entail, including the risk that the value of the Units will
decline with increases in interest rates. Insurance obtained by the Security
issuer does not guarantee the market value of the Securities or the value of the
Units. Any such insurance obtained by the issuer may be considered to represent
an element of market value in regard to the Securities thus insured. The
insurance on the Securities in the Insured Trusts does not protect Unit Holders
from the risk that the value of the units may decline. (See Part B--``The
Trust--Portfolio Summary.'') The ratings of the Securities set forth in Part
A--``Schedule of Portfolio Securities'' may have declined due to, among other
factors (including a decline in the creditworthiness of an insurer in the case
of an insured trust which may also result in a decline in the AAA rating of the
Units of an insured trust), a decline in creditworthiness of the issuer of said
Securities.
Note: ``Tax Status'' in Part B is amended so that the third paragraph is
deleted and replaced with the following two paragraphs:
If the proceeds received by the Trust upon the sale or redemption of an
underlying Security exceed a Unit Holder's adjusted tax cost allocable to
the Security disposed of, that Unit Holder will realize a taxable gain to
the extent of such excess. Conversely, if the proceeds received by the Trust
upon the sale or redemption of an underlying Security are less than a Unit
Holder's adjusted tax cost allocable to the Security disposed of, that Unit
Holder will realize a loss for tax purposes to the extent of such
difference.
Any gain recognized on a sale or exchange of a Unit Holder's pro rata
interest in a Security, and not constituting a realization of accrued
``market discount,'' and any loss will be a capital gain or loss, except in
the case of a dealer or financial institution. Gain realized on the
disposition of the interest of a Unit Holder in a market discount Security
is treated as ordinary income to the extent the gain does not exceed the
accrued market discount. A Unit Holder has an interest in a market discount
Security in a case in which (i) the Unit Holder purchased a Unit after April
30, 1993, and (ii) the tax cost for the Unit Holder's pro rata interest in
the Security is less than the stated redemption price thereof at maturity
(or the issue price plus original issue discount accrued up to the
acquisition date, in the case of an
A-ii
<PAGE>
original issue discount Security). If the market discount is less than .25%
of the stated redemption price of the Security at maturity multiplied by the
number of complete years to maturity, the market discount shall be
considered to be zero. Any capital gain or loss arising from the disposition
of a Unit Holder's pro rata interest in a Security will be a long-term
capital gain or loss if the Unit Holder has held his or her Units and the
Trust has held the Security for more than one year. Under the Code, net
capital gain (i.e., the excess of net long-term capital gain over net
short-term capital loss) of individuals, estates and trusts is subject to a
maximum nominal tax rate of 28%. Such net capital gain may, however, result
in a disallowance of itemized deductions and/or affect a personal exemption
phase-out.
In addition, the sixth paragraph of ``Tax Status'' in Part B is amended to
delete such paragraph and replace it with the following two paragraphs:
Persons in receipt of Social Security benefits should be aware that a
portion of such Social Security benefits may be includible in gross income.
For a taxpayer whose modified adjusted gross income plus one-half of his or
her Social Security benefits does not exceed $34,000 ($44,000 for married
taxpayers filing a joint return), the includible amount is the lesser of (i)
one-half of the Social Security benefits or (ii) one-half of the amount by
which the sum of ``modified adjusted gross income'' plus one-half of the
Social Security benefits exceeds $25,000 in the case of unmarried taxpayers
and $32,000 in the case of married taxpayers filing a joint return. All
other taxpayers receiving Social Security benefits are required to include
up to 85% of their Social Security benefits in income.
Modified adjusted gross income is adjusted gross income determined
without regard to certain otherwise allowable deductions and exclusions from
gross income, plus tax exempt interest on municipal obligations including
interest on the Securities. To the extent that Social Security benefits are
includible in gross income they will be treated as any other item of gross
income and therefore may be taxable.
Note: ``Public Offering of Units--Volume Discount'' in Part B is replaced
with the following:
VOLUME DISCOUNT
The sales charge per Unit will be computed by multiplying the Evaluator's
determination of the bid side evaluation of each Security by a sales charge
determined in accordance with the table set forth below based upon the number of
years remaining to the maturity of each such Security, totalling all such
calculations, and dividing this total by the number of Units then outstanding.
In calculating the date of maturity, a Security will be considered to mature on
its stated maturity date unless: (a) the Security has been called for redemption
or funds or securities have been placed in escrow to redeem it on an earlier
call date, in which case the call date will be deemed the date on which such
Security matures, or (b) the Security is subject to a mandatory tender, in which
case the mandatory tender date will be deemed the date on which such Security
matures.
<TABLE>
<CAPTION>
(As Percent of Bid (As Percent of Public
Time to Maturity Side Evaluation) Offering Price)
<S> <C> <C>
- ------------------------- ------------------ ---------------------
Less than six months..... 0% 0%
Six months to 1 year..... 0.756% 0.75%
Over 1 year to 2 years... 1.523% 1.50%
Over 2 years to 4
years.................... 2.564% 2.50%
Over 4 years to 8
years.................... 3.627% 3.50%
Over 8 years to 15
years.................... 4.712% 4.50%
Over 15 years............ 5.820% 5.50%
</TABLE>
The sales charge per Unit will be reduced pursuant to the following
graduated scale for sales to any person of at least 100 Units.
<TABLE>
<CAPTION>
Number of Units % of Sales Charge
<S> <C>
- ------------------------- ------------------
Less than 100 Units...... 100%
100-249 Units............ 90%
250-499 Units............ 80%
500-749 Units............ 75%
750-999 Units............ 70%
1,000 Units or More...... 65%
</TABLE>
A-iii
<PAGE>
The respective reduced sales charges as shown on each of the above charts
will apply to all purchases of Units in any fourteen day period by the same
person in the amounts stated herein, and for this purpose, purchases of Units of
a Trust will be aggregated with concurrent purchases of Units of any other trust
that may be offered by the Sponsor.
Units held in the name of the purchaser's spouse, in the name of a
purchaser's child under the age of 21 or in the name of an entity controlled by
the purchaser are deemed for the purposes hereof to be acquired by the
purchaser. The reduced sales charges are also applicable to a trustee or other
fiduciary purchasing Units for a single trust estate or single fiduciary
account.
Note: ``Rights of Unit Holders--Distribution of Interest and Principal'' in
Part B is amended so that the third sentence of the fifth paragraph of such
section reads, ``Record dates for monthly distributions will be the tenth day of
each month, record dates for quarterly distributions will be the tenth day of
January, April, July and October, and record dates for semi-annual distributions
will be the tenth day of January and July.'' The first sentence of the seventh
paragraph of such section is amended to read as follows, ``As of the tenth day
of each month, the Trustee will deduct from the Interest Account and, to the
extent funds are not sufficient therein, from the Principal Account, amounts
necessary to pay the expenses of the Trust. (See ``Expenses and Charges''.)''
The reference to the ``fifth business day'' in ``Rights of Unit
Holders--Computation of Redemption Price per Unit'' in Part B is amended to read
``third business day''.
``Auditors'' in Part B is amended so that ``Deloitte & Touche'' is replaced
with ``Deloitte & Touche LLP.
''Evaluator`` in Part B is amended so that ''Kenny Information Systems, Inc.
is replaced with ``J.J. Kenny Co, Inc.''.
The section titled ``Trustee'' in Part B is amended so that ``United States
Trust Company of New York, with its principal place of business at 114 West 47th
Street, New York, New York 10036, and its unit investment trust office at 770
Broadway, New York, New York 10003'' is replaced with ``The Chase Manhattan Bank
(National Association), with its principal executive office located at 1 Chase
Manhattan Plaza, New York, New York 10081 and its unit investment trust office
at 770 Broadway, New York, New York 10003''.
Portfolio Summary
National Trust (Uninsured)
The Portfolio contains 11 issues of Securities of issuers located in 8
states and the Commonwealth of Puerto Rico. All of the issues are payable from
the income of specific projects or authorities and are not supported by the
issuer's power to levy taxes. Although income to pay such Securities may be
derived from more than one source, the primary sources of such income and the
percentage of issues deriving income from such sources are as follows: airport
facilities: 12.6%* of the Trust; health and hospital facilities: 29.9%* of the
Trust; housing facilities: 12.2%* of the Trust; parking facilities: 12.0%* of
the Trust; resource recovery facilities: 1.0%* of the Trust; utility facilities:
14.1%* of the Trust; water and sewer facilities: 7.6%* of the Trust;
miscellaneous: 10.6%* of the Trust. The Trust is concentrated in health and
hospital facilities Securities.
75.4%* of the Securities in the Trust are rated by Standard & Poor's
Corporation (7.6%* being rated AAA, 55.8%* being rated A and 12.0%* being rated
BBB) and 24.6%* of the Securities in the Trust are rated by Moody's Investors
Service (12.0%* being rated A and 12.6%* being rated Baa). For a description of
the meaning of the applicable rating symbols as published by Standard & Poor's
and Moody's, see Part B--``Bond Ratings''. It should be emphasized, however,
that the ratings of Standard & Poor's and Moody's represent their opinions as
to the quality of the Securities which they undertake to rate and that these
ratings are general and are not absolute standards of quality.
Six Securities in the Trust have been issued with an ``original issue
discount''. (See Part B--``Tax Status''.)
Of these original issue discount bonds, approximately 8.1% of the aggregate
principal amount of the Securities in the Trust (although only 2.2%* of the
aggregate bid price of all Securities in the Trust) are zero coupon bonds
(including bonds known as multiplier bonds, money multiplier bonds, capital
appreciation bonds, capital accumulator bonds, compound interest bonds, and
discount maturity payment bonds).
- ------------
* Percentages computed on the basis of the aggregate bid price of the
Securities in the Trust on March 12, 1996.
A-iv
<PAGE>
Alternative Minimum Tax
As of the date of the Summary of Essential Information, the Sponsor's
affiliate, The Prudential Investment Corporation, estimates that 55.8% of the
estimated annual income per Unit consists of interest on private activity bonds,
which interest is to be treated as a tax preference item for alternative minimum
tax purposes (See ``Tax Status'' and ``Schedule of Portfolio Securities'').
The Sponsor participated as sole underwriter or manager or member of
underwriting syndicates from which approximately 3.2%* of the Trust was
acquired.
California Trust (Insured)
The Portfolio contains 7 issues of Securities of issuers located in the
State of California. All of the issues are payable from the income of specific
projects or authorities and are not supported by the issuer's power to levy
taxes. Although income to pay such Securities may be derived from more than one
source, the primary sources of such income and the percentage of issues deriving
income from such sources are as follows: education facilities: 16.1%* of the
Trust; utility facilities: 3.5%* of the Trust; certificates of participation:
28.9%* of the Trust; water and sewer facilities: 1.7%* of the Trust; special tax
bonds: 49.8%* of the Trust. The Trust is concentrated in certificates of
participation and special tax bonds.
100%* of the Securities in the Trust are rated AAA by Standard & Poor's
Corporation. For a description of the meaning of the applicable rating symbols
as published by Standard & Poor's see Part B--``Bond Ratings''. It should be
emphasized, however, that the ratings of Standard & Poor's represent its opinion
as to the quality of the Securities which it undertakes to rate and that these
ratings are general and are not absolute standards of quality.
Four Securities in the Trust have been issued with an ``original issue
discount''. (See Part B--``Tax Status''.)
Of these original issue discount bonds, approximately 10.3% of the aggregate
principal amount of the Securities in the Trust (although only 3.5%* of the
aggregate bid price of all Securities in the Trust) are zero coupon bonds
(including bonds known as multiplier bonds, money multiplier bonds, capital
appreciation bonds, capital accumulator bonds, compound interest bonds, and
discount maturity payment bonds).
The Securities in the Trust are insured to maturity by the insurance
obtained by the issuer from the following insurance companies: AMBAC: 30.6%*;
FSA: 25.0%*D; FGIC: 28.3%*; MBIA & MBIAC: 16.1%*.
New York Trust (Insured)
The Portfolio contains 9 issues of Securities of issuers located in the
State of New York. Two of the issues (20.9%* of the Trust) are general
obligations of governmental entities and are backed by the general taxing power
of those entities. The remaining issues are payable from the income of specific
projects or authorities and are not supported by the issuer's power to levy
taxes. Although income to pay such Securities may be derived from more than one
source, the primary sources of such income and the percentage of issues deriving
income from such sources are as follows: education facilities: 25.0%* of the
Trust; transportation facilities: 17.8%* of the Trust; water and sewer
facilities: 36.3%* of the Trust. The Trust is concentrated in water and sewer
facilities and education facilities Securities.
100%* of the Securities in the Trust are rated AAA by Standard & Poor's
Corporation. For a description of the meaning of the applicable rating symbols
as published by Standard & Poor's see Part B--``Bond Ratings''. It should be
emphasized, however, that the ratings of Standard & Poor's represent its opinion
as to the quality of the Securities which it undertakes to rate and that these
ratings are general and are not absolute standards of quality.
Six Securities in the Trust have been issued with an ``original issue
discount''. (see Part B--``Tax Status''.)
- ------------
* Percentages computed on the basis of the aggregate bid price of the
Securities in the Trust on March 12, 1996.
D Percentage shown for FSA includes Securities originally insured by CGIC.
In December 1995, CGIC became a subsidiary of FSA, and all policies issued by
CGIC became covered by the intercompany pooling agreement among the FSA group of
insurance companies, as a result of which all policies issued by CGIC are backed
by the same claims-paying resources as policies issued by FSA.
A-v
<PAGE>
Of these original issue discount bonds, approximately 14.3% of the aggregate
principal amount of the Securities in the Trust (although only 5.2%* of the
aggregate bid price of all Securities in the Trust) are zero coupon bonds
(including bonds known as multiplier bonds, money multiplier bonds, capital
appreciation bonds, capital accumulator bonds, compound interest bonds, and
discount maturity payment bonds).
The Securities in the Trust are insured to maturity by the insurance
obtained by the issuer from the following insurance companies: AMBAC: 31.7%*;
FGIC: 59.3%*; MBIA & MBIAC: 9.0%*.
Alternative Minimum Tax
As of the date of the Summary of Essential Information, the Sponsor's
affiliate, The Prudential Investment Corporation, estimates that 21.8% of the
estimated annual income per Unit consists of interest on private activity bonds,
which interest is to be treated as a tax preference item for alternative minimum
tax purposes (see ``Tax Status'' and ``Schedule of Portfolio Securities'').
The Sponsor participated as sole underwriter or manager or member of
underwriting syndicates from which approximately 45.6%* of the Trust was
acquired.
- ------------
* Percentages computed on the basis of the aggregate bid price of the
Securities in the Trust on March 12, 1996.
A-vi
<PAGE>
SUMMARY OF ESSENTIAL INFORMATION
NATIONAL MUNICIPAL TRUST
SERIES 145
(UNINSURED)
As of March 12, 1996
<TABLE>
<S> <C>
FACE AMOUNT OF SECURITIES.......................... $8,715,000.00
NUMBER OF UNITS.................................... 8,735
FRACTIONAL UNDIVIDED INTEREST IN THE TRUST
REPRESENTED BY EACH UNIT......................... 1/8,735th
PUBLIC OFFERING PRICE
Aggregate bid side evaluation of Securities in
the Trust...................................... $8,600,062.65
Divided by 8,735 Units........................... $ 984.55
Plus sales charge of 5.490% of Public Offering
Price (5.809% of net amount invested in
Securities).................................... $ 57.19
-------------
Public Offering Price per Unit(2)................ $ 1,041.74
-------------
-------------
REDEMPTION PRICE AND SPONSOR'S REPURCHASE PRICE PER
UNIT (based on bid side evaluation of underlying
Securities, $57.19 less than Public Offering
Price per Unit)(4)............................... $ 984.55
-------------
-------------
MINIMUM PRINCIPAL DISTRIBUTION: No distribution need be made from
the Principal Account if the balance therein is less than $1
per Unit.
SPONSOR'S ANNUAL PORTFOLIO SUPERVISION FEE: Maximum .25 per
$1,000 face amount of underlying Securities.
PREMIUM AND DISCOUNT ISSUES IN PORTFOLIO:
Face amount of Securities with bid side evaluation:
over par--91.9%; at par--0%; at a discount from par--8.1%
EVALUATOR'S FEE FOR EACH EVALUATION: Maximum of $14.
EVALUATION TIME: 3:30 P.M. New York time
MANDATORY TERMINATION DATE: January 1, 2042
MINIMUM VALUE OF TRUST: The Trust may be terminated if the value
of the Trust is less than $3,494,000.
Percentage of Unit Holders required to consent in order to amend
(as permitted) the Trust Indenture and Agreement (except under
certain circumstances when Unit Holder consent is not
required).................................................. 51%
Percentage of Unit Holders required to consent in order to
terminate the Trust........................................ 51%
DATE OF DEPOSIT: January 15, 1992(1)
</TABLE>
<TABLE>
<CAPTION>
Monthly
-------
<S> <C>
CALCULATION OF ESTIMATED NET ANNUAL INCOME PER UNIT
Estimated Annual Income per Unit............................................................... $67.48
Less estimated annual expenses per Unit(3)..................................................... (1.62)
-------
Estimated Net Annual Income per Unit........................................................... $65.86
-------
-------
Trustee's Annual Fee per $1,000 principal amount of underlying Securities........................ $ .96
Daily Rate of Income Accrual per Unit............................................................ $.1829
Estimated Current Return (based on Public Offering Price)(5)(6).................................. 6.32%
Estimated Long-Term Return(6).................................................................... 5.76%
INTEREST DISTRIBUTION
Estimated Net Annual Income per Unit / 12...................................................... $ 5.48
Record Dates--Monthly: tenth day of each month
Distribution Dates--Monthly: twenty-fifth day of each month
</TABLE>
- ------------
(1) The Date of Deposit is the date on which the Indenture was signed and
the deposit of Securities with the Trustee was made.
(2) This Public Offering Price is computed as of March 12, 1996 and may vary
from the Public Offering Price on the date of this Prospectus or any subsequent
date.
(3) Includes Trustee's fee, Sponsor's Portfolio supervision fee, estimated
expenses and Evaluator's fees.
(4) Exclusive of accrued interest which to March 15, 1996, the expected date
of settlement for the purchase of Units on March 12, 1996 was $15.48.
(5) The estimated current return is increased for transactions entitled to a
reduced sales charge. (See Part B--``The Trust''--``Estimated Annual Income and
Current Return per Unit.'')
(6) The Estimated Current Return is calculated by dividing the Estimated Net
Annual Income per Unit by the Public Offering Price per Unit. The Estimated Net
Annual Income per Unit will vary with changes in fees and expenses of the
Trustee and the Evaluator and with the principal prepayment, redemption,
maturity, exchange or sale of Securities while the Public Offering Price will
vary with changes in the offering price of the underlying Securities; therefore,
there is no assurance that the present Estimated Current Return indicated above
will be realized in the future. The Estimated Long-Term Return is calculated on
a pre-tax basis using a formula which takes into consideration, and factors in
the relative weightings of, the market values, yields (which takes into account
the amortization of premiums and the accretion of discounts) and estimated
retirements of all of the Securities in the Trust and takes into account the
expenses and sales charge associated with each Unit. Since the market values and
estimated retirements of the Securities and the expenses of the Trust will
change, there is no assurance that the present Estimated Long-Term Return as
indicated above will be realized in the future. The after-tax Estimated
Long-Term Return will be lower to the extent of any taxation on the disposition
of Securities. The Estimated Current Return and Estimated Long-Term Return are
expected to differ because the calculation of the Estimated Long-Term Return
reflects the estimated date and amount of principal returned while the Estimated
Current Return calculations include only Net Annual Interest Income and Public
Offering Price as of the above indicated calculation date of the Summary of
Essential Information.
A-vii
<PAGE>
SUMMARY OF ESSENTIAL INFORMATION
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
CALIFORNIA TRUST
(INSURED)
As of March 12, 1996
STANDARD & POOR'S CORPORATION RATING: AAA
<TABLE>
<S> <C>
FACE AMOUNT OF SECURITIES.......................... $2,175,000.00
NUMBER OF UNITS.................................... 2,578
FRACTIONAL UNDIVIDED INTEREST IN THE TRUST
REPRESENTED BY EACH UNIT......................... 1/2,578th
PUBLIC OFFERING PRICE
Aggregate bid side evaluation of Securities in
the Trust...................................... $2,227,324.66
Divided by 2,578 Units........................... $ 863.97
Plus sales charge of 4.633% of Public Offering
Price (4.858% of net amount invested in
Securities).................................... $ 41.97
-------------
Public Offering Price per Unit(2)................ $ 905.94
-------------
-------------
REDEMPTION PRICE AND SPONSOR'S REPURCHASE PRICE PER
UNIT (based on bid side evaluation of underlying
Securities, $41.97 less than Public Offering
Price per Unit)(4)............................... $ 863.97
-------------
-------------
MINIMUM PRINCIPAL DISTRIBUTION: No distribution need be made from
the Principal Account if the balance therein is less than $1
per Unit.
SPONSOR'S ANNUAL PORTFOLIO SUPERVISION FEE: Maximum $.05 per
$1,000 face amount of underlying Securities.
PREMIUM AND DISCOUNT ISSUES IN PORTFOLIO:
Face amount of Securities with bid side evaluation:
over par--89.7% at par--0%; at a discount from par--10.3%
EVALUATOR'S FEE FOR EACH EVALUATION: Maximum of $14.
EVALUATION TIME: 3:30 P.M. New York time
MANDATORY TERMINATION DATE: January 1, 2042
MINIMUM VALUE OF TRUST: The Trust may be terminated if the value
of the Trust is less than $1,630,000.
Percentage of Unit Holders required to consent in order to amend
(as permitted) the Trust Indenture and Agreement (except under
certain circumstances when Unit Holder consent is not
required).................................................. 51%
Percentage of Unit Holders required to consent in order to
terminate the Trust........................................ 51%
DATE OF DEPOSIT: January 15, 1992(1)
</TABLE>
<TABLE>
<CAPTION>
Monthly
-------
<S> <C>
CALCULATION OF ESTIMATED NET ANNUAL INCOME PER UNIT
Estimated Annual Income per Unit............................................................... $52.44
Less estimated annual expenses per Unit(3)..................................................... (1.38)
-------
Estimated Net Annual Income per Unit........................................................... $51.06
-------
-------
Trustee's Annual Fee per $1,000 principal amount of underlying Securities........................ $ .96
Daily Rate of Income Accrual per Unit............................................................ $.1418
Estimated Current Return (based on Public Offering Price)(5)(6).................................. 5.64%
Estimated Long-Term Return(6).................................................................... 4.30%
INTEREST DISTRIBUTION
Estimated Net Annual Income per Unit / 12...................................................... $ 4.25
Record Dates--Monthly: tenth day of each month
Distribution Dates--Monthly: twenty-fifth day of each month
</TABLE>
- ------------
(1) The Date of Deposit is the date on which the Indenture was signed and
the deposit of Securities with the Trustee was made.
(2) This Public Offering Price is computed as of March 12, 1996 and may vary
from the Public Offering Price on the date of this Prospectus or any subsequent
date.
(3) Includes Trustee's fee, Sponsor's Portfolio supervision fee, estimated
expenses and Evaluator's fees.
(4) Exclusive of accrued interest which to March 15, 1996, the expected date
of settlement for the purchase of Units on March 12, 1996 was $11.97.
(5) The estimated current return is increased for transactions entitled to a
reduced sales charge. (See Part B--``The Trust''--``Estimated Annual Income and
Current Return per Unit.'')
(6) The Estimated Current Return is calculated by dividing the Estimated Net
Annual Income per Unit by the Public Offering Price per Unit. The Estimated Net
Annual Income per Unit will vary with changes in fees and expenses of the
Trustee and the Evaluator and with the principal prepayment, redemption,
maturity, exchange or sale of Securities while the Public Offering Price will
vary with changes in the offering price of the underlying Securities; therefore,
there is no assurance that the present Estimated Current Return indicated above
will be realized in the future. The Estimated Long-Term Return is calculated on
a pre-tax basis using a formula which takes into consideration, and factors in
the relative weightings of, the market values, yields (which takes into account
the amortization of premiums and the accretion of discounts) and estimated
retirements of all of the Securities in the Trust and takes into account the
expenses and sales charge associated with each Unit. Since the market values and
estimated retirements of the Securities and the expenses of the Trust will
change, there is no assurance that the present Estimated Long-Term Return as
indicated above will be realized in the future. The after-tax Estimated
Long-Term Return will be lower to the extent of any taxation on the disposition
of Securities. The Estimated Current Return and Estimated Long-Term Return are
expected to differ because the calculation of the Estimated Long-Term Return
reflects the estimated date and amount of principal returned while the Estimated
Current Return calculations include only Net Annual Interest Income and Public
Offering Price as of the above indicated calculation date of the Summary of
Essential Information.
A-viii
<PAGE>
SUMMARY OF ESSENTIAL INFORMATION
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
NEW YORK TRUST
(INSURED)
As of March 12, 1996
STANDARD & POOR'S CORPORATION RATING: AAA
<TABLE>
<S> <C>
FACE AMOUNT OF SECURITIES.......................... $3,870,000.00
NUMBER OF UNITS.................................... 3,864
FRACTIONAL UNDIVIDED INTEREST IN THE TRUST
REPRESENTED BY EACH UNIT......................... 1/3,864th
PUBLIC OFFERING PRICE
Aggregate bid side evaluation of Securities in
the Trust...................................... $3,848,080.04
Divided by 3,864 Units........................... $ 995.88
Plus sales charge of 4.770% of Public Offering
Price (5.009% of net amount invested in
Securities).................................... $ 49.88
-------------
Public Offering Price per Unit(2)................ $ 1,045.76
-------------
-------------
REDEMPTION PRICE AND SPONSOR'S REPURCHASE PRICE PER
UNIT (based on bid side evaluation of underlying
Securities, $49.88 less than Public Offering
Price per Unit)(4)............................... $ 995.88
-------------
-------------
MINIMUM PRINCIPAL DISTRIBUTION: No distribution need be made from
the Principal Account if the balance therein is less than $1
per Unit.
SPONSOR'S ANNUAL PORTFOLIO SUPERVISION FEE: Maximum $.05 per
$1,000 face amount of underlying Securities.
PREMIUM AND DISCOUNT ISSUES IN PORTFOLIO:
Face amount of Securities with bid side evaluation:
over par--85.7%; at par--0%; at a discount from par--14.3%
EVALUATOR'S FEE FOR EACH EVALUATION: Maximum of $14.
EVALUATION TIME: 3:30 P.M. New York time
MANDATORY TERMINATION DATE: January 1, 2042
MINIMUM VALUE OF TRUST: The Trust may be terminated if the value
of the Trust is less than $1,666,000.
Percentage of Unit Holders required to consent in order to amend
(as permitted) the Trust Indenture and Agreement (except under
certain circumstances when Unit Holder consent is not
required).................................................. 51%
Percentage of Unit Holders required to consent in order to
terminate the Trust........................................ 51%
DATE OF DEPOSIT: January 15, 1992(1)
</TABLE>
<TABLE>
<CAPTION>
Monthly
-------
<S> <C>
CALCULATION OF ESTIMATED NET ANNUAL INCOME PER UNIT
Estimated Annual Income per Unit............................................................... $61.00
Less estimated annual expenses per Unit(3)..................................................... (1.51)
-------
Estimated Net Annual Income per Unit........................................................... $59.49
-------
-------
Trustee's Annual Fee per $1,000 principal amount of underlying Securities........................ $ .96
Daily Rate of Income Accrual per Unit............................................................ $.1652
Estimated Current Return (based on Public Offering Price)(5)(6).................................. 5.69%
Estimated Long-Term Return(6).................................................................... 4.28%
INTEREST DISTRIBUTION
Estimated Net Annual Income per Unit / 12...................................................... $ 4.95
Record Dates--Monthly: tenth day of each month
Distribution Dates--Monthly: twenty-fifth day of each month
</TABLE>
- ------------
(1) The Date of Deposit is the date on which the Indenture was signed and
the deposit of Securities with the Trustee was made.
(2) This Public Offering Price is computed as of March 12, 1996 and may vary
from the Public Offering Price on the date of this Prospectus or any subsequent
date.
(3) Includes Trustee's fee, Sponsor's Portfolio supervision fee, estimated
expenses and Evaluator's fees.
(4) Exclusive of accrued interest which to March 15, 1996, the expected date
of settlement for the purchase of Units on March 12, 1996 was $14.15.
(5) The estimated current return is increased for transactions entitled to a
reduced sales charge. (See Part B--``The Trust''--``Estimated Annual Income and
Current Return per Unit.'')
(6) The Estimated Current Return is calculated by dividing the Estimated Net
Annual Income per Unit by the Public Offering Price per Unit. The Estimated Net
Annual Income per Unit will vary with changes in fees and expenses of the
Trustee and the Evaluator and with the principal prepayment, redemption,
maturity, exchange or sale of Securities while the Public Offering Price will
vary with changes in the offering price of the underlying Securities; therefore,
there is no assurance that the present Estimated Current Return indicated above
will be realized in the future. The Estimated Long-Term Return is calculated on
a pre-tax basis using a formula which takes into consideration, and factors in
the relative weightings of, the market values, yields (which takes into account
the amortization of premiums and the accretion of discounts) and estimated
retirements of all of the Securities in the Trust and takes into account the
expenses and sales charge associated with each Unit. Since the market values and
estimated retirements of the Securities and the expenses of the Trust will
change, there is no assurance that the present Estimated Long-Term Return as
indicated above will be realized in the future. The after-tax Estimated
Long-Term Return will be lower to the extent of any taxation on the disposition
of Securities. The Estimated Current Return and Estimated Long-Term Return are
expected to differ because the calculation of the Estimated Long-Term Return
reflects the estimated date and amount of principal returned while the Estimated
Current Return calculations include only Net Annual Interest Income and Public
Offering Price as of the above indicated calculation date of the Summary of
Essential Information.
A-ix
<PAGE>
Risk Factors
Potential purchasers of the Units of a State Trust should consider the fact
that the Trust's Portfolio consists primarily of Securities issued by the state
for which such State Trust is named or its municipalities or authorities and
realize the substantial risks associated with an investment in such Securities.
Each State Trust is subject to certain additional risk factors:
The Sponsor believes the information summarized below describes some of the
more significant aspects of each of the State Trusts. The sources of such
information are the official statements of issuers as well as other publicly
available documents. While the Sponsor has not independently verified this
information, it has no reason to believe that such information is not correct
in all material respects.
California Trust
Since the start of the 1990-91 fiscal year, California (the ``State'') has
faced the worst economic, fiscal and budget conditions since the 1930s.
Construction, manufacturing (especially aerospace), exports and financial
services, among others, have all been severely affected. Job losses have been
the worst of any post-war recession and have been estimated to exceed 800,000.
While the most severe point of the recession has been estimated to have occurred
in late 1993, pre-recession job levels are not expected to be reached for
several more years.
The recession has seriously affected State tax revenues, which basically
mirror economic conditions. It has also caused increased expenditures for health
and welfare programs. The State has also been facing a structural imbalance in
its budget with the largest programs supported by the General Fund (K-12 schools
and community colleges, health, welfare and corrections) growing at rates higher
than the growth rates for the principal revenue sources of the General Fund.
(The General Fund, the State's main operating fund, consists of revenues which
are not required to be credited to any other fund.) As a result, the State has
experienced recurring budget deficits. The State Controller reports that
expenditures exceeded revenues for four of the six fiscal years ending with
1992-93, and were essentially equal in 1993-94. According to the Department of
Finance, the State has suffered a continuing budget deficit of approximately
$2.8 billion in the Special Fund for Economic Uncertainties. (Special Funds
account for revenues obtained from specific revenue sources, and which are
legally restricted to expenditures for specified purposes.) The 1993-94 Budget
Act incorporated a Deficit Reduction Plan to repay this deficit over two years.
The original budget for 1993-94 reflected revenues which exceeded expenditures
by approximately $2.8 billion. As a result of continuing recession, the excess
of revenues over expenditures for the 1993-94 fiscal year was less than $300
million. Thus, the accumulated budget deficit at June 30, 1994 was not able to
be retired by June 30, 1995 as planned. When the economy failed to recover
sufficiently in 1993-94, a second two-year plan was implemented in 1994-95. The
accumulated budget deficits over the past several years, together with
expenditures for school funding which have not been reflected in the budget, and
the reduction of available internal borrowable funds, have combined to
significantly deplete the State's cash resources to pay its ongoing expenses. In
order to meet its cash needs, the State has had to rely for several years on a
series of external borrowings, including borrowings past the end of a fiscal
year.
Employment, income, and retail sales in the State have shown modest
increases over the past couple of years, indicating some recovery from
recessionary conditions. Between 1993 and 1994, nonagricultural employment in
the State grew by nearly 2 percent; personal income was up approximately 2.8
percent; and retail sales increased over 6 percent. These increases
notwithstanding, pre-recession job levels are not expected to be reached until
1997.
On January 17, 1994 the Northridge earthquake, measuring an estimated 6.8 on
the Richter Scale, struck Los Angeles. Significant property damage to private
and public facilities occurred in a four-county area including northern Los
Angeles County, Ventura County, and parts of Orange and San Bernardino Counties,
which were declared as State and federal disaster areas by January 18. Current
estimates of total property damage (private and public) are in the range of
$15-20 billion, but these estimates are still subject to change. However, much
of the damage from the Northridge Earthquake will be compensated by insurance or
government aid. The remaining uncompensated losses total several billion
dollars, which is a small amount relative to the overall wealth of the region.
The earthquake's effects are therefore not expected to have a material impact on
the State's overall economic performance.
Despite such damage, on the whole, the vast majority of structures in the
areas, including large manufacturing and commercial buildings and all modern
high-rise offices, survived the earthquake with minimal or no damage, validating
the cumulative effect of strict building codes and thorough preparation for such
emergency by the State and local agencies.
A-x
<PAGE>
Together with the federal government, which is providing over $9.5 billion
in aid, the State is committed to assisting local governments, individuals and
businesses suffering damage caused by the earthquake, as well as to assisting in
the repair and replacement of State-owned facilities.
Sectors which are now contributing to California's recovery include
construction and related manufacturing, wholesale and retail trade,
transportation and several service industries such as amusements and recreation,
business services, and management consulting. Electronics is showing modest
growth and the rate of decline in aerospace manufacturing is slowly diminishing.
As a result of these factors, average 1994 non-farm employment exceeded
expectations and grew beyond 1993 levels.
On December 6, 1994, Orange County, California (the ``County''), together
with its pooled investment funds (the ``Pools''), filed for protection under
Chapter 9 of the federal Bankruptcy Code. The bankruptcy was preceded by reports
that the Pools' investments had suffered significant losses, which caused a
liquidity crisis for the Pools and the County. Over 180 public entities, mostly
located in the County, were also depositors in the Pools. The Pools' loss has
been reported by the County at approximately $1.69 billion, which equals about
23 percent of their initial $7.5 billion deposits. Many entities with moneys
deposited in the Pools, including the County, suffered interim and/or extended
cash flow difficulties as a result of the bankruptcy filing and may be forced to
reduce programs or capital projects.
On May 2, 1995, the Bankruptcy Court approved a settlement agreement
covering claims of the other participating entities against the County and the
Pools. Most participants have received in cash 80% (90% for school districts) of
their Pools' investments with the balance to be paid in the future. The County
successfully deferred the repayment of $800 million in short-term obligations
due in July and August, 1995 until June 30, 1996 with the holders of such
obligations consenting to such deferral. This notwithstanding, Moody's and S&P
consider the notes to be in default. County voters rejected a proposal on June
27, 1995 for a temporary 0.5% increase in the local sales tax to replace
revenues lost after the Pools' investment losses. The County is presently
developing an alternative financial plan.
The State bears no existing obligation in connection with any of the
outstanding obligations or securities of the County or any of the other
participating entities. It may, however, be necessary for the State to intervene
if the County lacks sufficient resources to maintain County administered State
programs. In this regard, the State cannot predict what, if any, action may
occur. The Legislature is considering the County's new financial plan and other
proposals relating to the County bankruptcy, including possible State oversight
of County finances. None of the proposals, however, presently involve any direct
State financial support of the County.
1994-95 Budget
The 1994-95 fiscal year represented the fourth consecutive year the Governor
and Legislature were faced with a very difficult budget environment to produce a
balanced budget. Many program cuts and budgetary adjustments have already been
made in the last three years. The Governor's May Revision to his Budget proposal
recognized that the accumulated deficit could not be repaid in one year, and
proposed a two-year solution. The May Revision set forth revenue and expenditure
forecasts and revenue and expenditure proposals which would result in operating
surpluses for the budget for both 1994-95 and 1995-96, and would lead to the
elimination of the accumulated deficit, estimated at about $2 billion at June
30, 1994, by June 30, 1996.
The 1994-95 Budget Act, signed by the Governor on July 8, 1994, projected
revenues and transfers of $41.9 billion, about $2.1 billion higher than revenues
in 1993-94. This reflected the Administration's forecast of an improved economy.
Also included in this figure was the projected receipt of about $360 million
from the Federal Government to reimburse the State for the cost of incarcerating
undocumented immigrants. The Legislature took no action on a proposal in the
Governor's January Budget to undertake expansion of the transfer of certain
programs to counties, which would also have transferred to counties 0.5% of the
State's current sales tax. The Budget Act projected Special Fund revenues of
$12.1 billion, a decrease of 2.4% from 1993-94 estimated levels.
The 1994-95 Budget Act projected General Fund expenditures of $40.9 billion,
an increase of $1.6 billion over 1993-94. The Budget Act also projected Special
Fund expenditures of $13.7 billion, a 5.4% increase over 1993-94 estimated
expenditures. The principal features of the Budget Act were the following:
1. Reductions of approximately $1.1 billion in health and welfare programs.
A-xi
<PAGE>
2. A General Fund increase of approximately $38 million in support for the
University of California (``U.C.'') and $65 million for the California State
University (``C.S.U.''). It was anticipated that student fees for both the U.C.
and the C.S.U. would increase up to 10%.
3. Proposition 98 funding for K-14 schools was increased by $526 million
from the 1993-94 levels, representing an increase for enrollment growth and
inflation. Consistent with previous budget agreements, Proposition 98 funding
provided approximately $4,217 per student for K-12 schools, equal to the level
in the prior three years.
4. Legislation enacted with the Budget Act clarified laws passed in 1992 and
1993 requiring counties and other local agencies to transfer funds to local
school districts, thereby reducing State aid. Some counties had implemented
programs providing less moneys to schools if there were redevelopment agencies
projects. The legislation banned this method of transfers. If all counties had
implemented this method, General Fund aid to K-12 schools would have increased
by $300 million in each of the 1994-95 and 1995-96 Fiscal Years.
5. The Budget Act provided funding for anticipated growth in the State's
prison inmate population, including provisions for implementing recent
legislation (the so-called ``Three Strikes'' law) which requires mandatory life
sentences for certain third-time felony offenders.
6. Additional miscellaneous cuts ($500 million) and fund transfers ($255
million) totalling in the aggregate approximately $755 million.
The 1994-95 Budget Act contained no tax increases. Under legislation enacted
for the 1993-94 Budget, the renters' tax credit was suspended for 1993 and 1994.
A ballot proposition to permanently restore the renters' credit after this year
failed at the June 1994 election. The Legislature enacted a further one-year
suspension of the renters' tax credit, saving about $390 million in the 1995-96
fiscal year. The 1994-95 Budget assumed that the State would use a cash flow
borrowing program in 1994-95 which would combine one-year notes and warrants.
Issuance of the warrants would allow the State to defer repayment of
approximately $1 billion of its accumulated budget deficit into the 1995-96
fiscal year.
May 1995 reports by the Department of Finance indicate that General Fund
revenues for the 1994-95 Fiscal Year exceeded projections, and expenditures were
lower than projected due to slower than anticipated health/welfare caseload
growth and school enrollments. The overall effect was to improve the budget by
approximately $500 million, leaving an estimated deficit of about $630 million
as of June 30, 1995.
Department of Finance analysis of the 1994-95 Fiscal Year budget indicates
that approximately $98 million was appropriated for the State to offset costs of
incarcerating illegal immigrants, in contrast to the $356 million assumed for
this purpose by the State's 1994-95 Budget Act. Approximately $33 million of
these funds were estimated to be received by the State during the 1994-95 Fiscal
Year, with the remainder to be received the following fiscal year. Departing
from 1994-95 Fiscal Year assumptions, it does not appear that the federal budget
contains any of the $400 million in additional funding for refugee assistance
and health costs. However, the Department of Finance expects that the State will
continue its efforts to obtain all or a portion of these federal funds.
1995-96 Budget
The State began the 1995-96 fiscal year with strengthening revenues based on
an improving economy and the smallest nominal ``budget gap'' to be closed in
many years.
The 1995-96 Budget Act, signed by the Governor on August 3, 1995, projects
General Fund revenues and transfers of $44.1 billion, about $2.2 billion higher
than projected revenues in 1994-95. The Budget Act projects Special Fund
revenues of $12.7 billion, an increase from $12.1 billion projected in 1994-95.
The 1995-96 Budget Act projects General Fund expenditures and transfers of
$43.4 billion, an increase of $168 million over 1994-95. The Budget Act also
projects Special Fund expenditures of $13.4 billion, a decrease of $700
million from 1994-95 projected expenditures. The principal features of the
Budget Act were the following:
1. Proposition 98 funding for schools and community colleges will increase
by about $1 billion (General Fund) and $1.2 billion total above revised 1994-95
levels. Because of higher than projected revenues in 1994-95, an additional $543
million is appropriated to the 1994-95 Proposition 98 entitlement. A significant
component of this amount is a block grant of about $54 per pupil for any
one-time purpose. Per-pupil expenditures are projected to increase by another
$126 in 1995-96 to $4,435. A full 2.7% cost of living allowance is funded for
the first time in several years. The budget compromise anticipates a settlement
of the CTA v. Gould litigation.
A-xii
<PAGE>
2. Cuts in health and welfare costs totaling about $900 million, some of
which would require federal legislative approval.
3. A 3.5% increase in funding for the University of California ($90 million
General Fund) and the California State University system ($24 million General
Fund).
4. The Budget assumes receipt of $473 million in new federal aid for costs
of illegal immigrants, in excess of federal government commitments. This amount
is considerably less than the summer 1994 two-year budget proposal estimate, and
is somewhat lower than the estimate in the January 1995 Governor's Budget.
5. General Fund support for the Department of Corrections is increased by
about 8 percent over 1994-95, reflecting estimates of increased prison
population. This amount is less than was proposed in the Governor's Budget.
THE FOREGOING DISCUSSION OF THE 1993-94, 1994-95 AND 1995-96 FISCAL YEAR
BUDGETS IS BASED IN LARGE PART ON STATEMENTS MADE IN A RECENT ``PRELIMINARY
OFFICIAL STATEMENT'' DISTRIBUTED BY THE STATE OF CALIFORNIA. IN THAT DOCUMENT,
THE STATE INDICATED THAT ITS DISCUSSION OF THE 1994-95 FISCAL YEAR BUDGET IS
BASED ON ESTIMATES AND PROJECTIONS OF REVENUES AND EXPENDITURES FOR THE CURRENT
FISCAL YEAR AND MUST NOT BE CONSTRUED AS STATEMENTS OF FACT. THE STATE NOTED
FURTHER THAT THE ESTIMATES AND PROJECTIONS ARE BASED UPON VARIOUS ASSUMPTIONS
WHICH MAY BE AFFECTED BY NUMEROUS FACTORS, INCLUDING FUTURE ECONOMIC CONDITIONS
IN THE STATE AND THE NATION, AND THAT THERE CAN BE NO ASSURANCE THAT THE
ESTIMATES WILL BE ACHIEVED.
State Appropriations Limit
The State is subject to an annual appropriations limit imposed by Article
XIIIB of the State Constitution (the ``Appropriations Limit''), and is
prohibited from spending ``appropriations subject to limitation'' in excess of
the Appropriations Limit. Article XIIIB, originally adopted in 1979, was
modified substantially by Propositions 98 and 111 in 1988 and 1990,
respectively. ``Appropriations subject to limitation'' are authorizations to
spend ``proceeds of taxes,'' which consist of tax revenues and certain other
funds, including proceeds from regulatory licenses, user charges or other fees
to the extent that such proceeds exceed the reasonable cost of providing the
regulation, product or service. The Appropriations Limit is based on the limit
for the prior year, adjusted annually for certain changes, and is tested over
consecutive two-year periods. Any excess of the aggregate proceeds of taxes
received over such two-year period above the combined Appropriation Limits for
those two years is divided equally between transfers to K-14 districts and
refunds to taxpayers.
Exempted from the Appropriations Limit are debt Service costs of certain
bonds, court or federally mandated costs, and, pursuant to Proposition 111,
qualified capital outlay projects and appropriations or revenues derived from
any increase in gasoline taxes and motor vehicle weight fees above January 1,
1990 levels. Some recent initiatives were structured to create new tax revenues
dedicated to specific uses and expressly exempted from the Article XIIIB limits.
The Appropriations Limit may also be exceeded in cases of emergency arising from
civil disturbance or natural disaster declared by the Governor and approved by
two-thirds of the Legislature. If not so declared and approved, the
Appropriations Limit for the next three years must be reduced by the amount of
the excess.
Article XIIIB, as amended by Proposition 98 on November 8, 1988, also
establishes a minimum level of State funding for school and community college
districts and requires that excess revenues up to a certain limit be transferred
to schools and community college districts instead of returned to the taxpayers.
Determination of the minimum level of funding is based on several tests set
forth in Proposition 98. During fiscal year 1991-1992 revenues were smaller than
expected, thus reducing the payment owed to schools in 1991-92 under alternate
``test'' provisions. In response to the changing revenue situation, and to fully
fund the Proposition 98 guarantee in the 1991-1992 and 1992-1993 fiscal years
without exceeding it, the Legislature enacted legislation to reduce 1991-92
appropriations. The amount budgeted to schools but which exceeded the reduced
appropriation was treated as a non-Proposition 98 short-term loan in 1991-92. As
part of the 1992-93 Budget, $1.083 billion of the amount budgeted to K-14
schools was designated to ``repay'' the prior year loan, thereby reducing cash
outlays in 1992-93 by that amount. To maintain per-average daily attendance
(``ADA'') funding, the 1992-93 Budget included loans of $732 million to K-12
schools and $241 million to community colleges, to be repaid from future
Proposition 98 entitlements. The 1993-94 Budget also provided new loans of $609
million to K-12 schools and $178 million to community colleges to maintain ADA
funding. These loans have been combined with the 1992-93 fiscal
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year loans into one loan of $1.760 billion, to be repaid from future years'
Proposition 98 entitlements, and conditioned upon maintaining current funding
levels per pupil at K-12 schools.
A Sacramento County Superior Court in California Teachers' Association, et
al. v Gould, et al., has ruled that the 1992-93 loans to K-12 schools and
community colleges violate Proposition 98. As part of the negotiations leading
to the 1995-96 Budget Act, an oral agreement was reached to settle this case. It
is expected that a formal settlement reflecting these conditions will be entered
into in the near future. The oral agreement provides that both the State and
K-14 schools share in the prepayment of prior years' emergency loans to schools.
Of the total $1.76 billion in loans, the State will repay $935 million, while
schools will repay $825 million. The State's share of the repayment will be
reflected as expenditures above the current Proposition 98 base calculation. The
schools' share of the repayment will count as appropriations that count toward
satisfying the Proposition 98 Guarantee, or from ``below'' the current base.
Repayments are spread over the eight-year period of 1994-95 through 2001-02 to
mitigate any adverse fiscal impact. Once a court settlement is reached, and the
Director of Finance certifies that such a settlement has occurred, $360 million
in appropriations to schools will be disbursed in August 1996.
The 1994-95 Budget Act appropriated $14.4 billion of Proposition 98 funds
for K-14 schools, exceeding the minimum Proposition 98 guaranty by $8 million to
maintain K-12 funds per pupil at $4,217. Based upon State revenues, growth rates
and inflation factors, the 1994-95 Budget Act appropriated an additional $286
million within Proposition 98 for the 1993-94 fiscal year to reflect a need in
appropriations for school district and county officers of education, as well as
an anticipated deficiency in special education funding. The 1995-96 Budget Act
appropriated $16.4 billion of Proposition 98 funds for K-12 education.
Because of the complexities of Article XIIIB, the ambiguities and possible
inconsistencies in its terms, the applicability of its exceptions and exemptions
and the impossibility of predicting future appropriations, the Sponsor cannot
predict the impact of this or related legislation on the bonds in the California
Trust Portfolio. Other Constitutional amendments affecting state and local taxes
and appropriations have been proposed from time to time. If any such initiatives
are adopted, the State could be pressured to provide additional financial
assistance to local governments or appropriate revenues as mandated by such
initiatives. Propositions such as Proposition 98 and others that may be adopted
in the future, may place increasing pressure on the State's budget over future
years, potentially reducing resources available for other State programs,
especially to the extent that the Article XIIIB spending limit would restrain
the State's ability to fund such other programs by raising taxes.
State Indebtedness
As of August 1, 1995, the State had over $18.93 billion aggregate amount of
its general obligation bonds outstanding. General obligation bond authorizations
in an aggregate amount of approximately $2.81 billion remained unissued as of
August 1, 1995. The State also builds and acquires capital facilities through
the use of lease purchase borrowing. As of August 1, 1995, the State had
approximately $5.56 billion of outstanding Lease-Purchase Debt.
In addition to the general obligation bonds, State agencies and authorities
had approximately $18.98 billion aggregate principal amount of revenue bonds and
notes outstanding as of June 30, 1995. Revenue bonds represent both obligations
payable from State revenue-producing enterprises and projects, which are not
payable from the General Fund, and conduit obligations payable only from
revenues paid by private users of facilities financed by such revenue bonds.
Such enterprises and projects include transportation projects, various public
works and exposition projects, educational facilities (including the California
State University and University of California systems), housing, health
facilities and pollution control facilities.
Litigation
The State is a party to numerous legal proceedings, many of which normally
occur in governmental operations. In addition, the State is involved in certain
other legal proceedings that, if decided against the State, might require the
State to make significant future expenditures or impair future revenue sources.
Examples of such cases include challenges to certain vehicle license fees, and
challenges to the State's use of Public Employee Retirement System funds to
offset future State and local pension contributions. Other cases which could
significantly impact revenue or expenditures involve challenges of payments of
wages under the Fair Labor Standards Act, the method of determining gross
insurance premiums involving health insurance, property tax challenges,
challenges of transfer of moneys from State Treasury special fund accounts to
the State's General Fund pursuant to 1991, 1992, 1993, and 1994 Budget Acts.
Because of the
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prospective nature of these proceedings, it is not presently possible to predict
the outcome of such litigation or estimate the potential impact on the ability
of the State to pay debt service on its obligation.
Ratings
On July 15, 1994, Standard & Poor's Corporation (``Standard & Poor's''),
Moody's Investors Service, Inc. (``Moody's''), and Fitch Investors Service, Inc.
(``Fitch'') all downgraded their ratings of California's general obligation
bonds. These bonds are usually sold in 20-to 30-year increments and used to
finance the construction of schools, prisons, water systems and other projects.
The ratings were reduced by Standard & Poor's from ``A+'' to ``A'', by Moody's
from ``Aa'' to ``A1'', and by Fitch from ``AA'' to ``A''. Since 1991, when it
had a ``AAA'' rating, the State's rating has been downgraded three times by all
three ratings agencies. All three agencies cite the 1994-95 Budget Act's
dependence on a ``questionable'' federal bailout to pay for the cost of illegal
immigrants, the Propositions 98 guaranty of a minimum portion of State revenues
for kindergarten through community college, and the persistent deficit requiring
more borrowing as reasons for the reduced rating. Another concern was the
State's reliance on a standby mechanism which could trigger across-the-board
reductions in all State programs, and which could disrupt State operations,
particularly in fiscal year 1995-96. However, a Standard & Poor's spokesman
stated that, although the lowered-ratings means California is a riskier
borrower, Standard & Poor's anticipates that the State will pay off its debts
and not default. There can be no assurance that such ratings will continue for
any given period of time or that they will not in the future be further revised.
Fitch upgraded its rating of California's general obligation bonds from
``A'' to ``A+'' on February 26, 1996. No rating change was made, however, by
either Moody's or Standard & Poor's as of that date.
As a result of Orange County's Chapter 9 bankruptcy filing on December 6,
1994, Moody's suspended the county's bond ratings until January 6, 1995, when it
reinstated them at a rating of ``Caa.'' On December 6, 1994, Standard & Poor's
cut its rating of all Orange County debt from ``AA-'' to ``CCC'', a level below
investment grade and an indication of high risk and uncertainty, and on December
8, 1994, Standard & Poor's further reduced its rating to ``D'' indicating
default status. Fitch does not rate Orange County bonds. It is anticipated that
as Orange County's credit and bond ratings fall, it will have difficulty in
getting loans or selling its bonds to raise money. Additionally, the County's
bankruptcy filing could affect about 180 municipalities, school districts, and
other municipal entities which entrusted billions of dollars to Orange County to
invest. Standard & Poor's has informed such entities that they have been placed
on negative credit watch, the usual step prior to a downgrade of credit rating.
New York Trust
New York State
The recent national and regional economic recession has caused a substantial
reduction in State tax receipts. This reduction is the principal cause of the
imbalance between recurring receipts and disbursements that faced the Governor
and Legislature in the adoption of the budget for the 1991-92 and subsequent
fiscal years. The Governor is required by the State Constitution to submit an
Executive Budget that balances receipts and disbursements.
As a result of the recent national and regional economic recession, the
State's projections of tax revenues for its 1991-92 and 1992-93 fiscal years
were substantially reduced. Consequently, the State took various actions for its
1991-92 fiscal year, which included increases in certain State taxes and fees,
substantial decreases in certain expenditures from previously projected levels,
including cuts in State operations and reductions in State aid to localities,
and the sale of $531 million of short-term deficit notes prior to the end of the
State's 1991-92 fiscal year. The State's 1992-93 budget was passed on time,
closing an estimated $4.8 billion imbalance resulting primarily from the
national and regional economic recession. Major budgetary actions included a
freeze in the scheduled reduction in the personal income tax and business tax
surcharge, adoption of significant Medicaid cost containment or revenue
initiatives, and cost reductions in both agency operations and grants to local
governments from previously anticipated levels. For its 1992-93 fiscal year, the
State had a balanced budget on a cash basis with a positive margin of $671
million. This performance was primarily attributable to income tax collections
that were more than $700 million higher than originally projected.
The January 18, 1994 revision to the 1993-94 State Financial Plan projects a
General Fund surplus of $299 million reflecting an improving economy. Positive
developments affecting both receipts and disbursements contributed to this
improved outlook. Total receipts and transfers from other funds are estimated at
$32.862 billion and total disbursements and transfers to other funds are
estimated at $32.182 billion. Also included are a $67 million repayment to the
State's Tax Stabilization Reserve Fund and a $314 million transfer to the
State's Contingency Reserve Fund.
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<PAGE>
The 1994-95 State Financial Plan projects a balanced General Fund with total
receipts and transfers from other funds estimated at $33.422 billion, including
the 1993-94 $299 million surplus, and total disbursements and transfers to other
funds estimated at $33.399 billion. Also included is a $23 million repayment to
the State's Tax Stabilization Reserve Fund resulting in a projected balance of
$157 million at the end of fiscal 1994-95. The projected April 1, 1994 balance
in the Contingency Reserve Fund is $311 million.
The State has noted that its forecasts of tax receipts have been subject to
variance in recent fiscal years. In addition, many uncertainties exist in
forecasts of both national and State economies, including consumer attitudes
toward spending, Federal financial and monetary policies, the availability of
credit, and the condition of the world economy which could have an adverse
effect on the State. As a result of these uncertainties and other factors,
actual results could differ materially and adversely from the State's current
projections and the State's projections could be materially and adversely
changed from time to time. To address any potential budgetary imbalance, the
State may need to take significant actions to align recurring receipts and
disbursements in future fiscal years.
On January 13, 1992, Standard & Poor's reduced its ratings on the State's
general obligation bonds from A to A-and, in addition, reduced its ratings on
the State's moral obligation, lease purchase, guaranteed and contractual
obligation debt. On March 9, 1993, Standard & Poor's confirmed its A-rating with
respect to the State's general obligation bonds. However, on February 14, 1994,
Standard & Poor's revised its stable rating outlook assessment on State general
obligation debt to positive. On January 6, 1992, Moody's reduced its ratings on
outstanding limited-liability State lease purchase and contractual obligations
from A to Baa1. On December 20, 1993, Moody's reconfirmed its A rating on the
State's general obligation long-term indebtedness.
State Authorities
The fiscal stability of the State is related to the fiscal stability of its
authorities, which generally have responsibility for financing, constructing,
and operating revenue-producing public benefit facilities. Certain authorities
of the State, including the State Housing Finance Agency (``HFA''), the Urban
Development Corporation (``UDC'') and the Metropolitan Transportation Authority
(``MTA'') have faced and continue to experience substantial financial
difficulties which could adversely affect the ability of such authorities to
make payments of interest on, and principal amounts of, their respective bonds.
Should any of its authorities default on their respective obligations, the
State's access to public credit markets could be impaired. The difficulties have
in certain instances caused the State (under its so-called ``moral obligation'')
to appropriate funds on behalf of the authorities. Moreover, it is expected that
the problems faced by these authorities will continue and will require
increasing amounts of State assistance in future years. Failure of the State to
appropriate necessary amounts or to take other action to permit those
authorities having financial difficulties to meet their obligations (including
HFA, UDC and MTA) could result in a default by one or more of the authorities.
Such default, if it were to occur, would be likely to have a significant adverse
effect on investor confidence in, and therefore the market price of, obligations
of the defaulting authority.
The MTA oversees the operation of New York City's subway and bus lines by
its affiliates, the New York City Transit Authority and the Manhattan and Bronx
Surface Transit Operating Authority (collectively, the ``Transit Authority'' or
the ``TA''). Through MTA's subsidiaries, the Long Island Railroad Company, the
Metro-North Commuter Railroad Company and the Metropolitan Suburban Bus
Authority, the MTA operates certain commuter rail and bus lines in the New York
metropolitan area. In addition, the Staten Island Rapid Transit Operating
Authority, an MTA subsidiary, operates a rapid transit line on Staten Island.
Through its affiliated agency, the Triborough Bridge and Tunnel Authority (the
``TBTA''), the MTA operates certain intrastate toll bridges and tunnels. Because
fare revenues are not sufficient to finance the mass transit portion of these
operations, the MTA has depended and will continue to depend for operating
support upon a system of State, local government and TBTA support, and to the
extent available, Federal operating assistance, including loans, grants and
operating subsidies.
For 1993, the TA had an estimated closing cash balance of approximately $39
million and projects a 1994 cash surplus of $77.6 million. The MTA Board
approved an increase in TBTA tolls which took effect January 31, 1993. Since
TBTA operating surpluses help subsidize TA operations, the TBTA toll increase
and other developments eliminated an earlier projected budget gap of $266
million. If any of the assumptions used in making these projections prove
incorrect, the TA's financial results could deteriorate and the TA would be
required to seek additional State assistance, raise fares even higher or take
other actions. Legislation was enacted in April 1993, relating to MTA's
1992-1996 Capital Program, that approved the funding of a portion of the $9.56
billion Capital Program. The required approval of the State Capital Program
Review Board was obtained on December 17, 1993.
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New York City
The fiscal health of the State is closely related to the fiscal health of
its localities, particularly The City of New York (the ``City''), which has
required and continues to require significant financial assistance from the
State which financial assistance could be affected by State revenue shortfalls
or spending increases beyond its projections. For each of its 1981 through 1993
fiscal years, the City, as required by State law, achieved balanced operating
results, in accordance with GAAP.
The New York State Financial Emergency Act for The City of New York (the
``Financial Emergency Act''), among other things, established the New York State
Financial Control Board (the ``Control Board'') to oversee the City's financial
affairs. The City operates under a four-year financial plan which is prepared
annually and is updated quarterly. The City submits its financial plans as well
as the updates quarterly to the Control Board for its review. The Municipal
Assistance Corporation for The City of New York (``MAC'') and the Office of the
State Deputy Comptroller for The City of New York (``OSDC'') assist the Control
Board in exercising its powers and responsibilities and exercise various
monitoring functions relating to the City's financial position.
The City's economy, although out of the recent long recession, is expected
to experience only moderate growth, with the local economy being held back by
the continuing weakness in important international economies. During each of the
fiscal years 1990-1993, as a result of the slowing economy, the City experienced
significant shortfalls from earlier projections in almost all of its major tax
sources, and was required to take exceptional measures to close substantial
budget gaps in order to maintain balanced budgets. The City's Financial Plan for
the 1994-97 fiscal years submitted on August 30, 1993 and modified in February
1994, sets forth actions to close a projected budget gap of $2.0 billion for the
1994 fiscal year which include productivity savings and savings from
restructuring the delivery of City services, service reductions, and the sale of
deliquent real property tax receivables. The Financial Plan also outlines
projected budget gaps of $2.3 billion, $3.2 billion and $3.3 billion for the
1995 through 1997 fiscal years, respectively.
As of June 30, 1993, the City estimated that its potential future liability
on account of outstanding claims against it amounted to approximately $2.2
billion and while the outcome of the proceedings and claims are not currently
predictable, adverse determinations in certain of them might have a material
adverse effect upon the City's ability to carry out the 1994-1997 Financial
Plan.
On July 2, 1993, Standard and Poor's confirmed its A-rating of City bonds
and continued its negative rating outlook assessment. On February 11, 1991,
Moody's Investors Service lowered its rating on the City's general obligation
bonds from A to Baa1.
Other New York Localities
Certain localities in addition to New York City could also have financial
problems leading to requests for additional State assistance in the future. The
potential impact on the State of any such requests by localities is not included
in the 1993-94 and 1994-95 Financial Plans.
Municipalities and school districts have engaged in substantial short-term
and long-term borrowings. In 1992, the total indebtedness of all other
localities in the State besides New York City was approximately $15.7 billion.
Although the 1992 level of deficit financing which totalled $131.1 million was
unprecedented, only $5.5 million in deficit financing was authorized for 1993.
Such deficit financing is not expected to have a material adverse effect on the
financial condition of the State. Certain proposed Federal expenditure
reductions would reduce, or in some cases eliminate, Federal funding of some
local programs and accordingly might impose substantial increased expenditure
requirements on affected localities. If the State, the City or any of the
Authorities were to suffer serious financial difficulties jeopardizing their
respective access to the public credit markets, the marketability of notes and
bonds issued by localities within the State could be adversely affected.
Localities also face anticipated and potential problems resulting from certain
pending litigation, judicial decisions, and long-range economic trends. The
longer range problems of declining urban population, increasing expenditures,
and other economic trends could adversely affect localities and require
increasing State assistance in the future.
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<PAGE>
Litigation
The State is the subject of numerous legal proceedings relating to State
finances, State programs and miscellaneous tort, real property and contract
claims in which the State is a defendant and where monetary damages sought are
substantial. These proceedings could adversely affect the financial condition of
the State.
Economy
A national recession commenced in mid-1990. The downturn continued
throughout the State's 1990-91 fiscal year and was followed by a period of weak
economic growth during the 1991 and 1992 calendar years. For calendar year 1993,
the economy grew faster than in 1992, but still at a very moderate rate, as
compared to other recoveries. Moderate economic growth is expected to continue
in calendar year 1994 at a slightly faster rate than 1993. Economic recovery
started considerably later in the State than in the nation as a whole due in
part to the significant retrenchment in the banking and financial services
industry, downsizing by several major corporations, cutbacks in defense
spending, and an oversupply of office buildings. There can be no assurance that
the State economy will not experience worse-than-predicted results in the
1993-94 and 1994-95 fiscal years, with corresponding material and adverse
effects on the State's projections of receipts and disbursements.
Over the long term, serious potential economic problems may continue to
aggravate State and local financial conditions. For decades, the State economy
has grown more slowly than the nation as a whole, resulting in the gradual
erosion of the State's relative economic affluence and tax base, and the
relocation of certain manufacturing operations and executive offices outside the
State. The causes of this relative decline are varied and complex, in many cases
involving national and international developments beyond the State's control.
Part of the reason for the long-term relative decline in the State economy has
been attributed to the combined state and local tax burden, which is among the
highest in the nation. The existence of this tax burden limits the State's
ability to impose higher taxes in the event of future financial difficulties.
If during the existence of the New York Trust, the City, the State, or any
of its agencies or municipalities, because of its or their own financial
difficulties, become unable to meet regular commitments or if there should be a
default, moratorium or other interruption of payments of interest or principal
on any obligation issued by the City, the State, or a municipality or other
authority in New York State, the market value and marketability of Bonds in the
New York Trust, the asset value of Units of the New York Trust and the interest
income to the New York Trust, could be adversely affected.
SUPPLEMENT TO PART B--TAX STATUS
California Trust
In the opinion of Messrs. Adams, Duque & Hazeltine, special California
counsel on California tax matters, under existing law:
The Insured California Trust is not an association taxable as a
corporation under the income tax laws of the State of California;
The income, deductions and credits against tax of the Insured California
Trust will be treated as the income, deductions and credits against tax of
the holders of Units in the Insured California Trust under the income tax
laws of the State of California;
Interest on the bonds held by an Insured California Trust to the extent
that such interest is exempt from taxation under California law will not
lose its character as tax-exempt income merely because that income is passed
through to the holders of Units; however, a corporation subject to the
California franchise tax is required to include that interest income in its
gross income for purposes of determining its franchise tax liability;
Each holder of a Unit in an Insured California Trust will have a taxable
event when such Insured California Trust disposes of a bond (whether by
sale, exchange, redemption, or payment at maturity) or when the Unit Holder
redeems or sells his Units. The total tax cost of each Unit to a holder of a
Unit in the California Trust is allocated among each of the bond issues held
in the Insured California Trust (in accordance with the proportion of the
Insured California Trust comprised by each bond issue) in order to determine
the holder's per Unit tax cost for each bond issue, and the tax cost
reduction requirements relating to amortization of bond premium will apply
separately to the
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<PAGE>
per Unit tax cost of each bond issue. Therefore, under some circumstances, a
holder of a Unit may realize taxable gain when the Insured California Trust
which issued such Unit disposes of a bond or the holder's Units are sold or
redeemed for an amount equal to or less than his original cost of the bond
or Unit;
Each holder of a Unit in an Insured California Trust is deemed to be the
owner of a pro rata portion of such Insured California Trust under the
personal property tax laws of the State of California;
Each Unit Holder's pro rata ownership of the bonds held by an Insured
California Trust, as well as the interest income therefrom, is exempt from
California personal property taxes; and
Amounts paid in lieu of interest on defaulted bonds held by the Trustee
under policies of insurance issued with respect to such bonds will be
excludable from gross income for California income tax purposes if, and to
the same extent as, those amounts would have been so excludable if paid as
interest by the respective issuer.
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<PAGE>
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
THE UNIT HOLDERS, SPONSOR AND TRUSTEE
NATIONAL MUNICIPAL TRUST
SERIES 145 (UNINSURED)
MULTISTATE SERIES 47
consisting of:
California Trust (Insured)
New York Trust (Insured)
We have audited the statements of financial condition and schedules of
portfolio securities of the National Municipal Trust Series 145 (Uninsured) and
Multistate Series 47 consisting of the California Trust (Insured) and the New
York Trust (Insured) as of December 31, 1995, and the related statements of
operations and changes in net assets for each of the three years in the period
then ended. These financial statements are the responsibility of the Trustee
(see Footnote (a)(1)). Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of the securities owned as of December 31,
1995 as shown in the statements of financial condition and schedules of
portfolio securities by correspondence with The Chase Manhattan Bank, N.A.
(formerly United States Trust Company of New York), the Trustee. An audit also
includes assessing the accounting principles used and the significant estimates
made by the Trustee, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the National Municipal Trust
Series 145 (Uninsured) and Multistate Series 47 consisting of the California
Trust (Insured) and the New York Trust (Insured) as of December 31, 1995, and
the results of their operations and the changes in their net assets for each of
the three years in the period then ended in conformity with generally accepted
accounting principles.
DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
April 4, 1996
New York, New York
</AUDIT-REPORT>
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<PAGE>
STATEMENT OF FINANCIAL CONDITION
NATIONAL MUNICIPAL TRUST
SERIES 145
(UNINSURED)
December 31, 1995
TRUST PROPERTY
<TABLE>
<S> <C>
Investments in municipal bonds at market value
(amortized cost $8,416,872) (Note (a) and
Schedule of Portfolio Securities Notes (4) and (5)) $8,820,671
Accrued interest receivable 154,970
Cash 2,446
Total 8,978,087
LIABILITY AND NET ASSETS
Less Liability:
Accrued Trust fees and expenses 3,870
Net Assets:
Balance applicable to 8,735 Units of fractional
undivided interest outstanding (Note (c)):
Capital, plus unrealized market
appreciation of $403,799 $8,820,671
Undistributed principal and net
investment income (Note (b)) 153,546
Net assets $8,974,217
Net asset value per Unit ($8,974,217 divided by 8,735 Units) $1,027.39
</TABLE>
See notes to financial statements
A-2
<PAGE>
STATEMENTS OF OPERATIONS
NATIONAL MUNICIPAL TRUST
SERIES 145
(UNINSURED)
<TABLE>
<CAPTION>
For the years ended December 31,
1995 1994 1993
<S> <C> <C> <C>
Investment income - interest $ 600,270 $ 599,969 $ 599,741
Less Expenses:
Trust fees and expenses 14,118 14,127 14,133
Investment income - net 586,152 585,842 585,608
Net gain (loss) on investments:
Realized loss on securities sold
or redeemed - (450) (450)
Net unrealized market appreciation
(depreciation) 793,668 (1,024,862) 527,811
Net gain (loss) on investments 793,668 (1,025,312) 527,361
Net increase (decrease) in net assets
resulting from operations $1,379,820 $ (439,470) $1,112,969
</TABLE>
See notes to financial statements
A-3
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
NATIONAL MUNICIPAL TRUST
SERIES 145
(UNINSURED)
<TABLE>
<CAPTION>
For the years ended December 31,
1995 1994 1993
<S> <C> <C> <C>
Operations:
Investment income - net $ 586,152 $ 585,842 $ 585,608
Realized loss on securities sold
or redeemed - (450) (450)
Net unrealized market appreciation
(depreciation) 793,668 (1,024,862) 527,811
Net increase (decrease) in
net assets resulting from
operations 1,379,820 (439,470) 1,112,969
Less Distributions to Unit Holders:
Principal - (9,958) -
Investment income - net (574,414) (575,462) (559,477)
Total distributions (574,414) (585,420) (559,477)
Net increase (decrease) in net assets 805,406 (1,024,890) 553,492
Net assets:
Beginning of year 8,168,811 9,193,701 8,640,209
End of year(including undistributed
principal and net investment income of
$153,546, $152,599 and $157,302,
respectively)
$8,974,217 $8,168,811 $9,193,701
</TABLE>
See notes to financial statements
A-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NATIONAL MUNICIPAL TRUST
SERIES 145
(UNINSURED)
December 31, 1995
(a) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Trust is registered under the Investment Company Act of 1940 as a
Unit Investment Trust. The following is a summary of the significant
accounting policies of the Trust:
(1) Basis of Presentation
The Trustee has custody of and responsibility for all accounting
and financial books, records, financial statements and related
data of the Trust and is responsible for establishing and
maintaining a system of internal controls directly related to, and
designed to provide reasonable assurance as to the integrity and
reliability of, financial reporting of the Trust. The Trustee is
also responsible for all estimates and accruals reflected in the
Trust's financial statements. The Evaluator determines the price
for each underlying Security included in the Trust's Schedule of
Portfolio Securities on the basis set forth in Part B of this
Prospectus, "Public Offering of Units - Public Offering Price".
Under the Securities Act of 1933 ("the Act"), as amended, the
Sponsor is deemed to be an issuer of the Trust Units. As such,
the Sponsor has the responsibility of an issuer under the Act with
respect to financial statements of the Trust included in the
Registration Statement under the Act and amendments thereto.
(2) Investments
Investments are stated at market value as determined by the
Evaluator based on the bid side evaluations on the last day of
trading during the period, except that value on the date of
deposit (January 15, 1992) represents the cost of investments to
the Trust based on the offering side evaluations as of the date of
deposit.
(3) Income Taxes
The Trust in not an association taxable as a corporation for
Federal income tax purposes; accordingly, no provision is required
for such taxes.
(4) Expenses
The Trust pays an annual Trustee's fee, estimated expenses,
Evaluator's fees, and an annual Sponsor's portfolio supervision
fee, and may incur additional charges as explained under "Expenses
and Charges" in Part B of this Prospectus.
(b) DISTRIBUTIONS
Interest received by the Trust is distributed to the Unit Holders on or
shortly after the twenty-fifth day of each month, after deducting
applicable expenses. Receipts other than interest are distributed as
explained in "Rights of Unit Holders - Distribution of Interest and
Principal" in Part B of this Prospectus.
A-5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NATIONAL MUNICIPAL TRUST
SERIES 145
(UNINSURED)
December 31, 1995
(c) ORIGINAL COST TO INVESTORS
The original cost to investors represents the aggregate initial public
offering price as of the date of initial deposit (January 15, 1992)
exclusive of accrued interest.
A reconciliation of the original cost of Units to investors to the net
amount applicable to investors as of December 31, 1995 follows:
<TABLE>
<S> <C>
Original cost to investors $8,818,605
Less: Gross underwriting commissions (sales charge) (418,931)
Net cost to investors 8,399,674
Cost of securities sold or redeemed (21,801)
Unrealized market appreciation 403,799
Accumulated interest accretion 38,999
Net amount applicable to investors $8,820,671
</TABLE>
(d) OTHER INFORMATION
Selected data for a Unit of the Trust during each year:
<TABLE>
<CAPTION>
For the years ended December 31,
1995 1994 1993
<S> <C> <C> <C>
Interest income $ 68.72 $ 68.69 $ 68.66
Expenses (1.62) (1.62) (1.62)
Investment income - net 67.10 67.07 67.04
Income distributions (65.76) (65.88) (64.05)
1.34 1.19 2.99
Principal distributions - (1.14) -
Realized loss on securities sold
or redeemed - (.05) (.05)
Net unrealized market appreciation
(depreciation) 90.87 (117.33) 60.42
Net increase (decrease)
in net asset value 92.21 (117.33) 63.36
Net asset value - beginning
of year 935.18 1,052.51 989.15
Net asset value - end of year $1,027.39 $ 935.18 $1,052.51
</TABLE>
A-6
<PAGE>
SCHEDULE OF PORTFOLIO SECURITIES
NATIONAL MUNICIPAL TRUST
SERIES 145
(UNINSURED)
December 31, 1995
<TABLE>
<CAPTION>
Port- Optional
folio Rating Face Coupon Maturity Sinking Fund Refunding Market
No. Title of Securities <F1> Amount Rate Date Redemptions<F3> Redemptions<F2> Value
<F4><F5>
<C> <S> <C> <C> <C> <C> <C> <C> <C>
1. City of San Francisco,
Ellis-O'Farrell Parking
Corporation, Parking Revenue
Bonds, Series 1992. A<F7> $1,000,000 7.125% 04/01/17 04/01/04@100 04/01/02@102 $1,053,660
2. Regional Airports Improve-
ment Corporation, Facilities
Lease Revenue Bonds, Issue
of 1991, LAXFUEL Corporation,
(Los Angeles International
Airport). <F6> A- 900,000 6.800 01/01/27 01/01/23@100 01/01/02@102 940,014
3. Broward County, Florida,
Resource Recovery Revenue
Bonds, Series 1984, (Bro-
ward Waste Energy Company,
L.P. North Project). A 80,000 7.950 12/01/08 12/01/96@100 12/01/99@103 90,066
4. City of Chicago, Chicago-
O'Hare International Air-
port, Special Facility Reve-
nue Bonds, (American Air-
lines, Inc. Project). <F6> Baa2<F7> 1,000,000 7.875 11/01/25 NONE 11/01/00@102 1,091,320
5. Illinois Health Facilities
Authority, Revenue Refunding
Bonds, Series 1989A (Victory
Memorial Hospital Associa-
tion). A 945,000 7.875 12/01/18 12/01/05@100 12/01/99@102 1,049,045
6. Hospital Service District
No. 1 of the Parish of
Ouachita, State of Louisi-
ana, Hospital Revenue Bonds,
(Glenwood Regional Medical
Center), Series 1991. A- 480,000 7.500 07/01/21 07/01/07@100 07/01/01@102 520,502
7. The Union County Utilities
Authority, (New Jersey),
Solid Waste System Revenue
Bonds, 1991 Series A. <F6> A- 1,000,000 7.200 06/15/14 06/15/10@100 06/15/02@102 1,069,110
8. New York State Environmen-
tal Facilities Corporation,
Water Facilities Revenue
Bonds, (Jamaica Water Sup-
ply Company Project),
Series 1989, (AMBAC Insured).
<F6> <F8> AAA 600,000 7.625 04/01/29 04/01/20@100 04/01/99@102 659,790
9. The Hospitals and Higher
Education Facilities Author-
ity of Philadelphia, Hospi-
tal Revenue Bonds, Series A
and B of 1991, (Graduate
Health System Obligated
Group). BBB+ 1,000,000 7.250 07/01/18 07/01/11@100 07/01/02@102 1,051,740
10. Puerto Rico Electric
Power Authority, Power Rev-
enue Bonds, Series O. A- 710,000 0.000 07/01/17 NONE NONE 221,704
11. Rhode Island Housing and
Mortgage, Finance Corpora-
tion Housing Bonds, 1991
Series A, (Rental Housing
Program). <F6> A 1,000,000 7.125 10/01/11 10/01/03@100 01/01/02@102 1,073,720
$8,715,000 $8,820,671
</TABLE>
See notes to schedule of portfolio securities
A-7
<PAGE>
NOTES TO SCHEDULE OF PORTFOLIO SECURITIES
NATIONAL MUNICIPAL TRUST
SERIES 145
(UNINSURED)
December 31, 1995
<F1> All ratings are provided by Standard & Poor's Corporation, unless
otherwise indicated. A brief description of applicable Security
ratings is given under "Bond Ratings" in Part B of this
Prospectus.
<F2> There is shown under this heading the date on which each issue of
Securities is redeemable by the operation of optional call
provisions and the redemption price for that date; unless
otherwise indicated, each issue continues to be redeemable at
declining prices thereafter but not below par. Securities listed
as non-callable, as well as Securities listed as callable, may
also be redeemable at par under certain circumstances from special
redemption payments.
<F3> There is shown under this heading the date on which an issue of
Securities is subject to scheduled sinking fund redemption and the
redemption price on that date.
<F4> The market value of the Securities as of December 31, 1995 was
determined by the Evaluator on the basis of bid side evaluations
for the Securities on the last trading date during the period
(December 29, 1995).
<F5> At December 31, 1995, the unrealized market appreciation of all
Securities was comprised of the following:
Gross unrealized market appreciation $403,799
Gross unrealized market depreciation -
Unrealized market appreciation $403,799
The amortized cost of the Securities for Federal income tax
purposes was $8,416,872 at December 31, 1995.
<F6> In the opinion of bond counsel to the issuing governmental
authorities, interest payments on these bonds will be a tax
preference item for individuals and corporations for alternative
minimum tax purposes. Normally, the bonds pay interest
semiannually. The payment dates can generally be determined based
on the date of maturity, i.e., a bond maturing on December 1 will
pay interest semiannually on June 1 and December 1. See "Tax
Status" in Part B of this Prospectus.
<F7> Moody's Investors Service, Inc. rating.
<F8> Insurance to maturity has been obtained by the Issuer from
the listed Insurance Company. The "AAA" rating on this security
is based in part on the creditworthiness and claims-paying ability
of the Insurance Company insuring such Security to maturity.
A-8
<PAGE>
STATEMENT OF FINANCIAL CONDITION
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
CALIFORNIA TRUST
(INSURED)
December 31, 1995
TRUST PROPERTY
<TABLE>
<S> <C>
Investments in municipal bonds at market value
(amortized cost $2,808,514) (Note (a) and
Schedule of Portfolio Securities Notes (4) and (5)) $3,046,668
Accrued interest receivable 52,258
Total 3,098,926
LIABILITIES AND NET ASSETS
Less Liabilities:
Cash overdraft 6,458
Accrued Trust fees and expenses 46
Total liabilities 6,504
Net Assets:
Balance applicable to 3,442 Units of fractional
undivided interest outstanding (Note (c)):
Capital, plus unrealized market
appreciation of $238,154 $3,046,668
Undistributed net investment
income (Note (b)) 45,754
Net assets $3,092,422
Net asset value per Unit ($3,092,422 divided by 3,442 Units) $ 898.44
</TABLE>
See notes to financial statements
A-9
<PAGE>
STATEMENTS OF OPERATIONS
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
CALIFORNIA TRUST
(INSURED)
<TABLE>
<CAPTION>
For the years ended December 31,
1995 1994 1993
<S> <C> <C> <C>
Investment income - interest $202,613 $213,919 $259,147
Less Expenses:
Trust fees and expenses 4,418 5,173 6,160
Total expenses 4,418 5,173 6,160
Investment income - net 198,195 208,746 252,987
Net gain (loss) on investments:
Realized gain (loss) on securities
sold or redeemed 38,816 (4,869) (7,969)
Net unrealized market appreciation
(depreciation) 231,063 (313,581) 274,274
Net gain (loss) on investments 269,879 (318,450) 266,305
Net increase (decrease) in net assets resulting
from operations $468,074 $(109,704) $519,292
</TABLE>
See notes to financial statements
A-10
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
CALIFORNIA TRUST
(INSURED)
<TABLE>
<CAPTION>
For the years ended December 31,
1995 1994 1993
<S> <C> <C> <C>
Operations:
Investment income - net $ 198,195 $ 208,746 $ 252,987
Realized gain (loss) on securities
sold or redeemed 38,816 (4,869)
(7,969)
Net unrealized market appreciation
(depreciation) 231,063 (313,581) 274,274
Net increase (decrease) in net
assets resulting from operations 468,074 (109,704) 519,292
Less Distributions to Unit Holders:
Principal - (384,965) (264,997)
Investment income - net (191,616) (213,296) (241,281)
Total distributions (191,616) (598,261) (506,278)
Less Capital Share Transactions:
Redemption of 507 Units and 126 Units,
respectively (442,091) (108,061) -
Accrued interest on redemption (6,358) (1,701) -
Total capital share
transactions (448,449) (109,762) -
Net (decrease) increase in net assets (171,991) (817,727) 13,014
Net assets:
Beginning of year 3,264,413 4,082,140 4,069,126
End of year (including undistributed net
investment income of $45,754, and undis-
tributed principal and net investment
income of $53,447 and $64,953, respec-
tively) $3,092,422 $3,264,413 $4,082,140
</TABLE>
See notes to financial statements
A-11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
CALIFORNIA TRUST
(INSURED)
December 31, 1995
(a) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Trust is registered under the Investment Company Act of 1940 as a
Unit Investment Trust. The following is a summary of the significant
accounting policies of the Trust:
(1) Basis of Presentation
The Trustee has custody of and responsibility for all accounting
and financial books, records, financial statements and related
data of the Trust and is responsible for establishing and
maintaining a system of internal controls directly related to, and
designed to provide reasonable assurance as to the integrity and
reliability of, financial reporting of the Trust. The Trustee is
also responsible for all estimates and accruals reflected in the
Trust's financial statements. The Evaluator determines the price
for each underlying Security included in the Trust's Schedule of
Portfolio Securities on the basis set forth in Part B of this
Prospectus, "Public Offering of Units - Public Offering Price".
Under the Securities Act of 1933 ("the Act"), as amended, the
Sponsor is deemed to be an issuer of the Trust Units. As such,
the Sponsor has the responsibility of an issuer under the Act with
respect to financial statements of the Trust included in the
Registration Statement under the Act and amendments thereto.
(2) Investments
Investments are stated at market value as determined by the
Evaluator based on the bid side evaluations on the last day of
trading during the period, except that value on the date of
deposit (January 15, 1992) represents the cost of investments to
the Trust based on the offering side evaluations as of the date of
deposit.
(3) Income Taxes
The Trust in not an association taxable as a corporation for
Federal income tax purposes; accordingly, no provision is required
for such taxes.
(4) Expenses
The Trust pays an annual Trustee's fee, estimated expenses,
Evaluator's fees, and an annual Sponsor's portfolio supervision
fee, and may incur additional charges as explained under "Expenses
and Charges" in Part B of this Prospectus.
(b) DISTRIBUTIONS
Interest received by the Trust is distributed to the Unit Holders on or
shortly after the twenty-fifth day of each month, after deducting
applicable expenses. Receipts other than interest are distributed as
explained in "Rights of Unit Holders - Distribution of Interest and
Principal" in Part B of this Prospectus.
A-12
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
CALIFORNIA TRUST
(INSURED)
December 31, 1995
(c) ORIGINAL COST TO INVESTORS
The original cost to investors represents the aggregate initial public
offering price as of the date of initial deposit (January 15, 1992)
exclusive of accrued interest.
A reconciliation of the original cost of Units to investors to the net
amount applicable to investors as of December 31, 1995 follows:
<TABLE>
<S> <C>
Original cost to investors $4,156,526
Less: Gross underwriting commissions (sales charge) (197,434)
Net cost to investors 3,959,092
Cost of securities sold or redeemed (1,172,701)
Unrealized market appreciation 238,154
Accumulated interest accretion 22,123
Net amount applicable to investors $3,046,668
</TABLE>
(d) OTHER INFORMATION
Selected data for a Unit of the Trust during each year:
<TABLE>
<CAPTION>
For the years ended December 31,
1995 1994 1993
<S> <C> <C> <C>
Principal distributions
during year $ - $ 94.47 $ 65.03
Net investment income
distributions during year $ 50.25 $ 53.43 $ 59.21
Net asset value at end of year $898.44 $826.64 $1,001.75
Trust Units outstanding
at end of year 3,442 3,949 4,075
</TABLE>
A-13
<PAGE>
SCHEDULE OF PORTFOLIO SECURITIES
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
CALIFORNIA TRUST
(INSURED)
December 31, 1995
<TABLE>
<CAPTION>
Port- Optional
folio Rating Face Coupon Maturity Sinking Fund Refunding Market
No. Title of Securities<F14> <F8> Amount Rate Date Redemptions<F10> Redemptions<F9> Value
<F11><F12>
<C> <S> <C> <C> <C> <C> <C> <C> <C>
1. California Health Facili-
ties Financing Authority,
Insured Health Facilities
Revenue Bonds, (Catholic
Healthcare West), 1991
Series D, (AMBAC Insured).
<F13> AAA $ 155,000 6.500% 07/01/16 07/01/05@100 07/01/01@102 $ 174,582
2. Anaheim, California Certi-
ficates of Participation,
Anaheim Memorial Hospital
Association, (AMBAC Insured).
<F13> AAA 250,000 7.250 05/15/20 05/15/14@100 05/15/00@102 285,110
3. Certificates of Participa-
tion, (1991 City Hall Re-
financing Project), City of
Fresno, California, (AMBAC
Insured). AAA 350,000 6.250 08/01/19 08/01/11@100 08/01/00@102 367,703
4. Poway Redevelopment Agency,
Paguay Redevelopment Proj-
ect, Tax Allocation Refund-
ing Bonds, Series 1990A,
(FGIC Insured). AAA 500,000 7.250 12/15/11 06/15/05@100 06/15/00@102 564,070
5. Richmond Redevelopment
Agency, Harbour Redevelop-
ment Project, 1991 Tax Allo-
cation Refunding Bonds,
(FSA Insured). AAA 500,000 7.000 07/01/09 07/01/04@100 07/01/02@102 572,120
6. San Francisco, California,
City and County Sewer Reve-
nue Bonds, (AMBAC Insured).
<F13> AAA 420,000 6.500 10/01/21 10/01/17@100 10/01/99@102 463,021
7. Southern California Public
Power Authority, Special
Obligation Bonds, Crossover
Series A, (FGIC Insured),
(Escrowed to Maturity). AAA 325,000 0.000 07/01/14 NONE NONE 120,806
8. The Regents of the Univers-
ity of California, Refunding
Revenue Bonds, (Multiple
Purpose Projects), Series A,
(MBIA Insured). <F13> AAA 430,000 6.875 09/01/16 09/01/03@100 09/01/02@102 499,256
$2,930,000 $3,046,668
</TABLE>
See notes to schedule of portfolio securities
A-14
<PAGE>
NOTES TO SCHEDULE OF PORTFOLIO SECURITIES
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
CALIFORNIA TRUST
(INSURED)
December 31, 1995
<F8> All ratings are provided by Standard & Poor's Corporation. A brief
description of applicable Security ratings is given under "Bond
Ratings" in Part B of this Prospectus.
<F9> There is shown under this heading the date on which each issue of
Securities is redeemable by the operation of optional call
provisions and the redemption price for that date; unless
otherwise indicated, each issue continues to be redeemable at
declining prices thereafter but not below par. Securities listed
as non-callable, as well as Securities listed as callable, may
also be redeemable at par under certain circumstances from special
redemption payments.
<F10> There is shown under this heading the date on which an issue of
Securities is subject to scheduled sinking fund redemption and the
redemption price on that date.
<F11> The market value of the Securities as of December 31, 1995 was
determined by the Evaluator on the basis of bid side evaluations
for the Securities on the last trading date during the period
(December 29, 1995).
<F12> At December 31, 1995, the unrealized market appreciation of all
Securities was comprised of the following:
Gross unrealized market appreciation $238,154
Gross unrealized market depreciation -
Unrealized market appreciation $238,154
The amortized cost of the Securities for Federal income tax
purposes was $2,808,514 at December 31, 1995.
<F13> The Issuers of Portfolio Nos. 1, 2, 6 and 8 have indicated that
they will refund these Securities on their respective optional
redemption dates.
<F14> Insurance to maturity has been obtained by the Issuer from the
listed Insurance Company for the Securities. The "AAA" ratings on
these Securities are based in part on the creditworthiness and
claims-paying ability of the Insurance Company insuring such
Security to maturity. No premium is payable therefore by the
Trust.
A-15
<PAGE>
STATEMENT OF FINANCIAL CONDITION
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
NEW YORK TRUST
(INSURED)
December 31, 1995
TRUST PROPERTY
<TABLE>
<S> <C>
Investments in municipal bonds at market value
(amortized cost $3,759,536) (Note (a) and
Schedule of Portfolio Securities Notes (4) and (5)) $4,016,201
Accrued interest receivable 72,516
Total 4,088,717
LIABILITIES AND NET ASSETS
Less Liabilities:
Cash overdraft 7,739
Accrued Trust fees and expenses 1,174
Total liabilities 8,913
Net Assets:
Balance applicable to 3,935 Units of fractional
undivided interest outstanding (Note (c)):
Capital, plus unrealized market
appreciation of $256,665 $4,016,201
Undistributed principal and net investment
income (Note (b)) 63,603
Net assets $4,079,804
Net asset value per Unit ($4,079,804 divided by 3,935 Units) $ 1,036.80
</TABLE>
See notes to financial statements
A-16
<PAGE>
STATEMENTS OF OPERATIONS
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
NEW YORK TRUST
(INSURED)
<TABLE>
<CAPTION>
For the years ended December 31,
1995 1994 1993
<S> <C> <C> <C>
Investment income - interest $262,739 $264,699 $264,100
Less Expenses:
Trust fees and expenses 6,226 6,289 6,285
Total expenses 6,226 6,289 6,285
Investment income - net 256,513 258,410 257,815
Net gain (loss) on investments:
Realized gain on securities sold or
redeemed 5,684 - -
Net unrealized market appreciation
(depreciation) 311,317 (460,907) 353,565
Net gain (loss) on investments 317,001 (460,907) 353,565
Net increase (decrease) in net
assets resulting from operations $573,514 $(202,497) $611,380
</TABLE>
See notes to financial statements
A-17
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
NEW YORK TRUST
(INSURED)
<TABLE>
<CAPTION>
For the years ended December 31,
1995 1994 1993
<S> <C> <C> <C>
Operations:
Investment income - net $ 256,513 $ 258,410 $ 257,815
Realized gain on securities sold or
redeemed 5,684 - -
Net unrealized market appreciation
(depreciation) 311,317 (460,907) 353,565
Net increase (decrease) in net
assets resulting from operations 573,514 (202,497) 611,380
Less Distributions to Unit Holders:
Investment income - net (245,747) (247,901) (240,779)
Total distributions (245,747) (247,901) (240,779)
Less Capital Share Transactions:
Redemption of 230 Units (231,146) - -
Accrued interest on redemption (3,354) - -
Total capital share transactions (234,500) - -
Net increase (decrease) in net assets 93,267 (450,398) 370,601
Net assets:
Beginning of year 3,986,537 4,436,935 4,066,334
End of year (including undistributed prin-
cipal and net investment income of $63,603
and undistributed net investment income of
$65,964 and $65,698, respectively) $4,079,804 $3,986,537 $4,436,935
</TABLE>
See notes to financial statements
A-18
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
NEW YORK TRUST
(INSURED)
December 31, 1995
(a) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Trust is registered under the Investment Company Act of 1940 as a
Unit Investment Trust. The following is a summary of the significant
accounting policies of the Trust:
(1) Basis of Presentation
The Trustee has custody of and responsibility for all accounting
and financial books, records, financial statements and related
data of the Trust and is responsible for establishing and
maintaining a system of internal controls directly related to, and
designed to provide reasonable assurance as to the integrity and
reliability of, financial reporting of the Trust. The Trustee is
also responsible for all estimates and accruals reflected in the
Trust's financial statements. The Evaluator determines the price
for each underlying Security included in the Trust's Schedule of
Portfolio Securities on the basis set forth in Part B of this
Prospectus, "Public Offering of Units - Public Offering Price".
Under the Securities Act of 1933 ("the Act"), as amended, the
Sponsor is deemed to be an issuer of the Trust Units. As such,
the Sponsor has the responsibility of an issuer under the Act with
respect to financial statements of the Trust included in the
Registration Statement under the Act and amendments thereto.
(2) Investments
Investments are stated at market value as determined by the
Evaluator based on the bid side evaluations on the last day of
trading during the period, except that value on the date of
deposit (January 15, 1992) represents the cost of investments to
the Trust based on the offering side evaluations as of the date of
deposit.
(3) Income Taxes
The Trust in not an association taxable as a corporation for
Federal income tax purposes; accordingly, no provision is required
for such taxes.
(4) Expenses
The Trust pays an annual Trustee's fee, estimated expenses,
Evaluator's fees, and an annual Sponsor's portfolio supervision
fee, and may incur additional charges as explained under "Expenses
and Charges" in Part B of this Prospectus.
(b) DISTRIBUTIONS
Interest received by the Trust is distributed to the Unit Holders on or
shortly after the twenty-fifth day of each month, after deducting
applicable expenses. Receipts other than interest are distributed as
explained in "Rights of Unit Holders - Distribution of Interest and
Principal" in Part B of this Prospectus.
A-19
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
NEW YORK TRUST
(INSURED)
December 31, 1995
(c) ORIGINAL COST TO INVESTORS
The original cost to investors represents the aggregate initial public
offering price as of the date of initial deposit (January 15, 1992)
exclusive of accrued interest.
A reconciliation of the original cost of Units to investors to the net
amount applicable to investors as of December 31, 1995 follows:
<TABLE>
<S> <C>
Original cost to investors $4,143,511
Less: Gross underwriting commissions (sales charge) (196,838)
Net cost to investors 3,946,673
Cost of Securities sold or redeemed (226,567)
Unrealized market appreciation 256,665
Accumulated interest accretion 39,430
Net amount applicable to investors $4,016,201
</TABLE>
(d) OTHER INFORMATION
Selected data for a Unit of the Trust during each year:
<TABLE>
<CAPTION>
For the years ended December 31,
1995 1994 1993
<S> <C> <C> <C>
Net investment income
distributions during year $ 59.50 $ 59.52 $ 57.81
Net asset value at end of year $1,036.80 $957.15 $1,065.29
Trust Units outstanding at
end of year 3,935 4,165 4,165
</TABLE>
A-20
<PAGE>
SCHEDULE OF PORTFOLIO SECURITIES
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
NEW YORK TRUST
(INSURED)
December 31, 1995
<TABLE>
<CAPTION>
Port- Optional
folio Rating Face Coupon Maturity Sinking Fund Refunding Market
No. Title of Securities<F21> <F15> Amount Rate Date Redemptions<F17> Redemptions<F16> Value
<F18><F19>
<C> <S> <C> <C> <C> <C> <C> <C> <C>
1. Dormitory Authority of the
State of New York, New York
University Insured Revenue
Bonds, Series 1991, (FGIC
Insured). AAA $ 460,000 6.000% 07/01/15 07/01/10@100 07/01/01@102 $ 479,150
2. Dormitory Authority of the
State of New York, City Uni-
versity System Consolidated
Second General Resolution
Revenue Bonds, Series 1990F,
(FGIC Insured). <F22> AAA 500,000 7.500 07/01/20 07/01/18@100 07/01/00@102 576,945
3. Metropolitan Transporta-
tion Authority Commuter
Facilities Service Contract
Bonds, Series K, (AMBAC
Insured). AAA 50,000 0.000 07/01/06 NONE NONE 30,475
4. New York City Municipal
Water Finance Authority,
Water and Sewer System Rev-
enue Bonds, Fiscal 1991,
Series C, (FGIC Insured).
<F22> AAA 590,000 7.000 06/15/16 06/15/15@100 06/15/[email protected] 675,981
5. New York State Environmen-
tal Facilities Corporation,
7 5/8% Water Facilities Rev-
enue Bonds, (Jamaica Water
Supply Company Project),
Series 1989, (AMBAC
Insured). <F20> AAA 675,000 7.625 04/01/29 04/01/20@100 04/01/99@102 742,264
6. Queensbury Union Free
School District, Warren
County, New York, General
Obligation Serial Bonds,
School District (Serial)
Bonds, 1990, (MBIA Insured). AAA 300,000 7.000 06/15/08 NONE NONE 360,411
7. The City of New York, Gen-
eral Obligation Bonds,
Fiscal 1991, Series A,
(AMBAC Insured). AAA 415,000 7.250 03/15/20 NONE 03/15/[email protected] 464,476
8. The Port Authority of New
York and New Jersey Consoli-
dated Bonds, Seventy-fourth
Series, (FGIC Insured). AAA 500,000 0.000 08/01/14 NONE NONE 184,025
9. Triborough Bridge and
Tunnel Authority, Special
Obligation Refunding Bonds,
Series 1991B, (FGIC
Insured). AAA 450,000 6.875 01/01/15 01/01/11@100 01/01/01@102 502,474
$3,940,000 $4,016,201
</TABLE>
See notes to schedule of portfolio securities
A-21
<PAGE>
NOTES TO SCHEDULE OF PORTFOLIO SECURITIES
NATIONAL MUNICIPAL TRUST
MULTISTATE SERIES 47
NEW YORK TRUST
(INSURED)
December 31, 1995
<F15> All ratings are provided by Standard & Poor's Corporation. A brief
description of applicable Security ratings is given under "Bond
Ratings" in Part B of this Prospectus.
<F16> There is shown under this heading the date on which each issue of
Securities is redeemable by the operation of optional call
provisions and the redemption price for that date; unless
otherwise indicated, each issue continues to be redeemable at
declining prices thereafter but not below par. Securities listed
as non-callable, as well as Securities listed as callable, may
also be redeemable at par under certain circumstances from special
redemption payments.
<F17> There is shown under this heading the date on which an issue of
Securities is subject to scheduled sinking fund redemption and the
redemption price on that date.
<F18> The market value of the Securities as of December 31, 1995 was
determined by the Evaluator on the basis of bid side evaluations
for the Securities on the last trading date during the period
(December 29, 1995).
<F19> At December 31, 1995, the unrealized market appreciation of all
Securities was comprised of the following:
Gross unrealized market appreciation $256,665
Gross unrealized market depreciation -
Unrealized market appreciation $256,665
The amortized cost of the Securities for Federal income tax
purposes was $3,759,536 at December 31, 1995.
<F20> In the opinion of bond counsel to the issuing governmental
authorities, interest payments on these bonds will be a tax
preference item for individuals and corporations for alternative
minimum tax purposes. Normally, the bonds pay interest
semiannually. The payment dates can generally be determined based
on the date of maturity, i.e., a bond maturing on December 1 will
pay interest semiannually on June 1 and December 1. See "Tax
Status" in Part B of this Prospectus.
<F21> Insurance to maturity has been obtained by the issuer from the
listed Insurance Company for the Securities. The "AAA" ratings on
these Securities are based in part on the creditworthiness and
claims-paying ability of the Insurance Company insuring such
Security to maturity. No premium is payable therefore by the
Trust.
<F22> The Issuers of Portfolio Nos. 2 and 4 have indicated that they will
refund these Securities on their respective optional redemption
dates.
A-22
