GOVERNMENT SECURITIES INC FD GNMA SER 1Z DEFINED ASSET FUNDS, 487, 1996-08-28

GOVERNMENT SECURITIES INC FD GNMA SER 1Z DEFINED ASSET FUNDS
487, 1996-08-28

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AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON AUGUST 28, 1996

REGISTRATION NO. 33-60243
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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549
------------------------

AMENDMENT NO. 1
TO
FORM S-6
------------------------

FOR REGISTRATION UNDER THE SECURITIES ACT
OF 1933 OF SECURITIES OF UNIT INVESTMENT
TRUSTS REGISTERED ON FORM N-8B-2
------------------------

A. EXACT NAME OF TRUST:

GOVERNMENT SECURITIES INCOME FUND
GNMA SERIES-1Z
DEFINED ASSET FUNDS

B. NAMES OF DEPOSITORS:

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
SMITH BARNEY INC.
PAINEWEBBER INCORPORATED
PRUDENTIAL SECURITIES INCORPORATED
DEAN WITTER REYNOLDS INC.

C. COMPLETE ADDRESSES OF DEPOSITORS' PRINCIPAL EXECUTIVE OFFICES:

SMITH BARNEY INC.
MERRILL LYNCH, PIERCE, FENNER & TWO WORLD TRADE CENTER PAINEWEBBER INCORPORATED
SMITH INCORPORATED 101ST FLOOR 1285 AVENUE OF THE AMERICAS
DEFINED ASSET FUNDS NEW YORK, N Y 10048 NEW YORK, N Y 10019
P.O. BOX 9051
PRINCETON, N J 08543-9051

PRUDENTIAL SECURITIES INCORPORATED DEAN WITTER REYNOLDS INC.
ONE NEW YORK PLAZA TWO WORLD TRADE CENTER--59TH FLOOR
NEW YORK, N Y 10292 NEW YORK, N Y 10048

D. NAMES AND COMPLETE ADDRESSES OF AGENTS FOR SERVICE:

TERESA KONCICK, ESQ. LAURIE A. HESSLEIN ROBERT E. HOLLEY
P.O. BOX 9051 388 GREENWICH STREET 1200 HARBOR BLVD.
PRINCETON, N J . 08543-9051 NEW YORK, N Y 10013 WEEHAWKEN, N J 07087

COPIES TO:
LEE B. SPENCER, JR. DOUGLAS LOWE, ESQ. PIERRE DE SAINT PHALLE, ESQ.
ONE NEW YORK PLAZA 130 LIBERTY STREET--29TH FLOOR 450 LEXINGTON AVENUE
NEW YORK, N Y 10292 NEW YORK, N Y 10006 NEW YORK, N Y 10017

E. TITLE AND AMOUNT OF SECURITIES BEING REGISTERED:

An indefinite number of Units of Beneficial Interest pursuant to Rule 24f-2
promulgated under the Investment Company Act of 1940, as amended.

F. PROPOSED MAXIMUM OFFERING PRICE TO THE PUBLIC OF THE SECURITIES BEING REGISTERED:

Indefinite

G. AMOUNT OF FILING FEE:

$500 (as required by Rule 24f-2)

/x/
Check box if it is proposed that this filing will become effective at 9:30 a.m. on August 28, 1996 pursuant to Rule
487.

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Defined Asset FundsSM

<S> <C>
GOVERNMENT 7.03% ESTIMATED CURRENT RETURN shows the estimated annual cash to be
SECURITIES received from interest-bearing securities in the Portfolio (net of
INCOME FUND estimated annual expenses) divided by the Public Offering Price
(including the maximum sales charge).
GNMA SERIES--1Z
(A UNIT INVESTMENT 7.02% ESTIMATED LONG TERM RETURN is a measure of the estimated return
TRUST) over the estimated life of the Fund (about years). This represents an
average of the yields to maturity (or in certain cases, to an earlier
call date) of the individual securities in the Portfolio, adjusted to
- ----------------------------------- reflect the maximum sales charge and estimated expenses. The average
/ / MONTHLY INCOME yield for the Portfolio is derived by weighting each security's yield by
- ----------------------------------- its market value and the time remaining to the call or maturity date,
depending on how the security is priced. Unlike Estimated Current Return,
7.03% Estimated Long Term Return takes into account maturities, discounts and
ESTIMATED CURRENT RETURN premiums of the underlying securities.

No return estimate can be predictive of your actual return because
7.02% returns will vary with purchase price (including sales charges), how long
ESTIMATED LONG TERM RETURN units are held, changes in Portfolio composition, changes in interest
income and changes in fees and expenses. Therefore, Estimated Current
Return and Estimated Long Term Return are designed to be comparative
rather than predictive. A yield calculation which is more comparable to
AS OF AUGUST 27, 1996 an individual security may be higher or lower than Estimated Current
Return or Estimated Long Term Return which are more comparable to return
calculations used by other investment products.

------------------------------------------------------------------
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 ADE-
QUACY OF THIS DOCUMENT. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
SPONSORS:
Inquiries should be directed to the Trustee at 1-800-323-1508.
Merrill Lynch,
Pierce, Fenner & Smith Incorporated Prospectus dated August 28, 1996.
Smith Barney Inc.
Prudential Securities Incorporated INVESTORS SHOULD READ THIS PROSPECTUS CAREFULLY AND RETAIN IT FOR FUTURE
Dean Witter Reynolds Inc. REFERENCE.
PaineWebber Incorporated

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Defined Asset FundsSM

Defined Asset Funds is America's oldest and largest family of unit investment
trusts, with over $100 billion sponsored in the last 25 years. Each Defined
Asset Fund is a portfolio of preselected securities. The portfolio is divided
into "units" representing equal shares of the underlying assets. Each unit
receives an equal share of income and principal distributions.

Defined Asset Funds offer several defined "distinctives". You know in advance
what you are investing in and that changes in the portfolio are limited -- a
defined portfolio. Most defined bond funds pay interest monthly -- defined
income. The portfolio offers a convenient and simple way to invest -- simplicity
defined.

Your financial professional can help you select a Defined Asset Fund to meet
your personal investment objectives. Our size and market presence enable us to
offer a wide variety of investments. The Defined Asset Funds family offers:

- Municipal portfolios
- Corporate portfolios
- Government portfolios
- Equity portfolios
- International portfolios

The terms of Defined Funds are as short as one year or as long as 30 years.
Special defined bond funds are available including: insured funds, double and
triple tax-free funds and funds with "laddered maturities" to help protect
against changing interest rates. Defined Asset Funds are offered by prospectus
only.

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Defined GNMA Series
- --------------------------------------------------------------------------

Our defined portfolio of mortgage-backed GNMA Securities offers you a simple and
convenient way to participate in the GNMA market and obtain monthly income while
earning an attractive return as well as the assurance of an investment in
securities that are guaranteed by GNMA, a federal agency.

INVESTMENT OBJECTIVES

To obtain safety of capital and current monthly income distributions through
investment in a portfolio of interest-bearing GNMA securities. The full faith
and credit of the United States is pledged to the payment of the Securities but
the units of the Fund, as such, are not directly backed.

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Defining Your Portfolio
- --------------------------------------------------------------------------

PROFESSIONAL SELECTION AND SUPERVISION

The Portfolio of Securities is selected by experienced buyers . The Fund is not
actively managed; however it is regularly reviewed and a Security can be sold if
retaining it is considered detrimental to investors' interests.

PORTFOLIO COMPOSITION

The Portfolio consists of 2 different issues of mortgage-backed Securities of
the modified pass- through type guaranteed by the Government National Mortgage
Association (GNMA): 7% Ginnie Maes maturing 8/15/14 to 9/15/26, 45%; 7.5% Ginnie
Maes maturing 8/15/14 to 9/15/26, 55%. All of the Ginnie Maes in the Fund are
backed by pools of long term mortgages on 1- to 4-family dwellings. The Ginnie
Maes are fully guaranteed as to payment of principal and interest by GNMA.

TAX INFORMATION

Distributions of ordinary income or capital gain from the Fund will be included
in a U.S. investor's gross income, but will not be eligible for the dividends-
received deduction for corporations. Distributions to investors who are not U.S.
citizens or residents will generally be subject to withholding tax at the
statutory rate of 30% (or a lesser treaty rate). (See Taxes in Part B.)

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Defining Your Investment
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PUBLIC OFFERING PRICE PER 1,000
UNITS $ 1,016.49

The Public Offering Price as of August 27, 1996, the business day prior to the
Initial Date of Deposit, is based on the aggregate offer side value of the
underlying Securities in the Fund ($487,913.50), plus a maximum sales charge of
4.167% of the value of the Securities , divided by the number of units (500,000)
times 1,000 . The Public Offering Price on any subsequent date will vary. An
amount equal to principal cash, if any, as well as net accrued but undistributed
interest on the unit is added to the Public Offering Price. The underlying
Securities are evaluated by an independent evaluator at 3:30 p.m. Eastern time
on every business day.
A-2

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LOW MINIMUM INVESTMENT

You can get started with a minimum purchase of about $250. There is no minimum
purchase for payroll deduction plans.

REINVESTMENT OPTION

You can elect to automatically reinvest your distributions into a separate
portfolio of mortgage- backed securities. Reinvesting helps to compound your
income.

TERMINATION DATE

The Fund will generally terminate no later than one year following the maturity
date of the last maturing Security listed in the Portfolio. The Fund may be
terminated earlier if the value is less than 40% of the face amount of
Securities deposited.

SPONSORS' PROFIT OR LOSS

The Sponsors' profit or loss associated with the Fund will include the receipt
of applicable sales charges, fluctuations in the Public Offering Price or
secondary market price of units, a gain of $1,405.69 on the initial deposit of
the Securities and a gain or loss on subsequent deposits of additional
Securities (see Underwriters' and Sponsors' Profits in Part B).

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Defining Your Risks
- --------------------------------------------------------------------------

RISK FACTORS

U.S. Government securities are not affected by credit risk but are subject to
changes in market value resulting from changes in interest rates. Unit price
fluctuates and the value of units will decline if interest rates increase. The
mortgages underlying the GNMA Securities are amortized, and there is no
prepayment protection. The potential for appreciation that might otherwise
result from a decline in interest rates would be limited by any increase in
prepayments by mortgagors as interest rates decline. Investors may also receive
payments of principal sooner than anticipated, and interest payments will
decrease as principal is returned. Because regular payments of principal will be
received over the life of the Fund and because of the possible maturity, sale or
other disposition of Securities, the size, composition and return of the
Portfolio may change at any time. Because of the sales charges, returns of
principal and fluctuations in unit price, among other reasons, the sale price
will generally be less than the cost of your units. There is no guarantee that
the Fund will achieve its investment objective.

The Fund itself and the units are not backed by the full faith and credit of the
U.S. Government (see Risk Factors in Part B).

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Defining Your Costs
- --------------------------------------------------------------------------

SALES CHARGES

Although the Fund is a unit investment trust rather than a mutual fund, the
following information is presented to permit a comparison of fees and an
understanding of the direct or indirect costs and expenses that you pay.

As a %
As a % of Secondary
of Initial Offering Market
Period Public Public Offering
Offering Price Price
------------------- ----------------

Maximum Sales Charges 4.00% 4.25%

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The Fund (and therefore the investors) will bear all or a portion of its
organizational costs--including costs of preparing the registration statement,
the trust indenture and other closing documents, registering units with the SEC
and the states and the initial audit of the Portfolio--as is common for mutual
funds.

ESTIMATED ANNUAL FUND OPERATING EXPENSES

As a %
of Average Per 1,000
Net Assets* Units
------------- -------------

<S> <C> <C>
Trustee's Fee .086% $0.84

Maximum Portfolio
Supervision,
Bookkeeping and
Administrative Fees .026 0.25

Organizational Expenses .021 0.20

Evaluator's Fee .001 0.01

Other Operating Expenses .020 0.20
-------- ---------

TOTAL .154% $1.50

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*Based on the mean of the bid and offer side evaluations.
A-3

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COSTS OVER TIME

You would pay the following cumulative expenses on a $1,000 investment, assuming
a 5% annual return on the investment throughout the indicated periods:

1 Year 3 Years 5 Years 10 Years

$ 42 $ 45 $ 48 $ 59

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The example assumes reinvestment of all distributions into additional units of
the Fund (a reinvestment option not offered by this Fund) and uses a 5% annual
rate of return as mandated by Securities and Exchange Commission regulations
applicable to mutual funds. The Costs Over Time above reflect both sales charges
and operating expenses on an increasing investment (because the net annual
return is reinvested). The example should not be considered a representation of
past or future expenses or annual rate of return; the actual expenses and annual
rate of return may be more or less than the example.

SELLING YOUR INVESTMENT

You may sell your units at any time. Your price is based on the Fund's then
current net asset value (based on the offer side evaluation of the Securities
during the initial public offering period and on the lower, bid side evaluation
thereafter, as determined by an independent evaluator), plus principal cash, if
any, as well as accrued interest. The bid side redemption and secondary market
repurchase price per 1,000 units as of August 27, 1996 was $974.58 ($41.91 less
than the Public Offering Price). There is no fee for selling your units.

- --------------------------------------------------------------------------
Defining Your Income
- --------------------------------------------------------------------------

MONTHLY INTEREST INCOME

The Fund pays monthly income .

WHAT YOU MAY EXPECT
(PAYABLE ON THE 23RD DAY OF THE MONTH TO HOLDERS OF RECORD ON THE 17TH DAY OF
THE MONTH):

<S> <C> <C>
Regular Monthly Income per 1,000 units
(Beginning on September 23, 1996): $ 5.95

Annual Income per 1,000 units: $71.44

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A-4

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Defined GNMA Portfolio
- --------------------------------------------------------------------------

Government Securities Income Fund
GNMA Series--1Z August 28, 1996

COST
PORTFOLIO NO. AND TITLE FACE AMOUNT COUPON RANGE OF STATED MATURITIES(1) TO FUND(2)
- --------------------------------------------- ------------- ------ ----------------------------- ---------------

1. Government National Mortgage Association, $ 225,000 7.000% 08/15/14 to 09/15/26 $ 216,351.00
Modified Pass-Through Mortgage-Backed
Securities

2. Government National Mortgage Association, 275,000 7.500 08/15/14 to 09/15/26 271,562.50
Modified Pass-Through Mortgage-Backed
Securities

------------- ---------------
$ 500,000 $ 487,913.50
------------- ---------------
------------- ---------------

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- ---------
(1) The face amount of Securities listed as having the range of maturities shown
is an aggregate of individual Securities having varying ranges of maturities
within that shown. They are listed as one category of Securities with a single
range of maturities because of current market conditions that accord no
difference in price amoung the Securities grouped together on the basis of the
difference in their maturity ranges. At some time in the future, however, the
difference in maturity ranges could affect the market value of the individual
Securities. In addition to the information as to the GNMA modified pass-through
mortgage-backed Securities set forth above, the Trustee will furnish investors a
statement listing the name of issuer, pool number, interest rate, maturity date
and above amount for each Security in the Portfolio upon written request.

(2) Evaluation of the Securities by the Evaluator is made on the basis of
current offer side evaluation. On this basis, 100% of the Securities were
deposited at a discount from par. On the business day prior to the Initial Date
of Deposit, the bid side evaluation was .13% lower than the offer side
evaluation
A-5

<PAGE>

GOVERNMENT SECURITIES INCOME FUND
GNMA SERIES 1Z
DEFINED ASSET FUNDS

I want to learn more about automatic reinvestment in the
GNMA Fund Investment Accumulation Program, Inc. Please send
me information about the Program and a current Prospectus.
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<S> <C> <C>
My name (please print)
----------------- -------------------------

Registered Holder

My address, including
Zip Code (please print)
----------------- -------------------------

1 2 3 4 5 6 7 8 Registered Holder
(two signatures required
if joint tenancy)

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<PAGE>
NO POSTAGE
NECESSARY
IF MAILED
IN THE
UNITED STATES
BUSINESS REPLY MAIL

FIRST CLASS PERMIT NO. 644 NEW YORK, N Y

POSTAGE WILL BE PAID BY ADDRESSEE
THE CHASE MANHATTAN BANK, (GNMA-1Z)
RETAIL PROCESSING DEPARTMENT
770 BROADWAY--7TH FLOOR
NEW YORK, NY 10003-9598
(Fold along this line.)
(Fold along this line.)

<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS

The Sponsors, Trustee and Holders of Government Securities Income Fund, GNMA
Series--1Z, Defined Asset Funds (the "Fund"):

We have audited the accompanying statement of condition and the related
portfolio included in the prospectus of the Fund as of August 28, 1996. This
financial statement is the responsibility of the Trustee. Our responsibility is
to express an opinion on this financial statement based on our audit.

We conducted our audit 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 statement is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statement. Our procedures included
confirmation of an irrevocable letter of credit deposited for the purchase of
securities, as described in the statement of condition, with the Trustee. An
audit also includes assessing the accounting principles used and significant
estimates made by the Trustee, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.

In our opinion, the financial statement referred to above presents fairly, in
all material respects, the financial position of the Fund as of August 28, 1996
in conformity with generally accepted accounting principles.

DELOITTE & TOUCHE LLP
New York, N.Y.
August 28, 1996

STATEMENT OF CONDITION AS OF AUGUST 28, 1996

<S> <C>
TRUST PROPERTY
Investments in Securities and Contracts to Purchase Securities(1) $ 487,913.50
Accrued interest to initial date of deposit on underlying Securities 1,818.75
Organizational Costs(2) 100,000.00
---------------
Total $ 589,732.25
---------------
---------------
LIABILITIES AND INTEREST OF HOLDERS
Liabilities: Accrued interest to Initial Date of Deposit on underlying Securities(3) $ 1,818.75
Accrued Liability(2) 100,000.00
---------------
Subtotal 101,818.75
---------------
Interest of Holders of 500,000 Units of fractional undivided interest outstanding:
Cost to investors(4) 508,243.50
Gross underwriting commissions(5) (20,330.00 )
---------------
Subtotal 487,913.50
---------------
Total $ 589,732.25
---------------
---------------

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(1) Aggregate cost to the Fund of the securities listed under Defined Portfolio
is based upon the offer side evaluation determined by the Evaluator at the
evaluation time on the business day prior to the Initial Date of Deposit. The
contracts to purchase the securities are collateralized by an irrevocable letter
of credit which has been issued by The Development Bank of Singapore, New York
Agency, in the amount of $488,326.56 and deposited with the Trustee. The amount
of the letter of credit includes $486,507.81 for the purchase of $500,000.00
face amount of the securities, plus $1,818.75 for accrued interest.

(2) This represents a portion of the Fund's organizational costs, which will be
deferred and amortized over five years . Organizational costs have been
estimated based on projected total assets of $100,000,000. To the extent the
Fund is larger or smaller, the amount paid may vary.
(3) Representing a special distribution by the Trustee to the Sponsors of an
amount equal to the accrued interest on the securities as of the initial date of
deposit.
(4) Aggregate public offering price (exclusive of interest) computed on the
basis of the offer side evaluation of the underlying securities as of the
evaluation time on the business day prior to the initial date of deposit.

(5) Assumes the maximum sales charge of 4.00% of the Public Offering Price
(4.167% of the value of the Securities).

A-6
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DEFINED ASSET FUNDSSM
PROSPECTUS--PART B
GOVERNMENT SECURITIES INCOME FUND
GNMA SERIES

THIS PART B OF THE PROSPECTUS MAY NOT BE DISTRIBUTED UNLESS ACCOMPANIED OR
PRECEDED BY PART A.
FURTHER INFORMATION REGARDING THE FUND MAY BE OBTAINED
WITHIN FIVE DAYS OF WRITING OR CALLING THE TRUSTEE, AT THE ADDRESS AND
TELEPHONE NUMBER SET FORTH ON THE BACK COVER OF THIS PROSPECTUS.

Index

PAGE PAGE
---- -----

Fund Description. . . . . . 1 Taxes. . . . . . . . . . . . . . 6

Risk Factors. . . . . . . . 2 Records and Reports. . . . . . . 8

How to Buy Units. . . . . . 3 Trust Indenture. . . . . . . . . 8

How to Redeem or Sell Units 4 Miscellaneous. . . . . . . . . . 9

Income and Distributions. . 5 Supplemental Information. . . . . 10

Fund Expenses. . . . . . . 6 Appendix A--Sales Charge Schedules a-1

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FUND DESCRIPTION

PORTFOLIO SELECTION

Professional buyers for Defined Asset Funds, with access to extensive
research, selected the Securities for the Portfolio after considering the Fund's
investment objectives as well as the availability of the Securities, the price
of the Securities compared to similar securities and the extent to which they
were trading at discounts or premiums to par, and the maturities of the
Securities. Only issues meeting these stringent criteria of Defined Asset Funds
are included in the Portfolio. No leverage or borrowing is used nor does the
Portfolio contain other kinds of securities to enhance yield. A summary of the
Securities in the Portfolio appears in Part A of the Prospectus.

The deposit of the Securities in the Fund on the initial date of deposit
established a proportionate relationship between the face amounts of the
Securities. Following the initial date of deposit the Sponsors may deposit
additional Securities in order to create new Units, maintaining to the extent
possible that original proportionate relationship.

Yields on GNMA mortgage-backed securities depend on many factors including
general money market conditions, general conditions of the corporate and
mortgage-backed bond markets and prevailing interest rates.

Because each Defined Asset Fund is a preselected portfolio of securities, you
know the terms of the Securities before you invest. Of course, the Portfolio
will change somewhat over time, as additional Securities are deposited in order
to create new Units, and as Securities mature, are redeemed or are sold to meet
Unit redemptions or in other limited circumstances.

GINNIE MAES

The Ginnie Maes in the Portfolio have been issued by the Government National
Mortgage Association (GNMA), which is a wholly-owned U.S. government corporation
within the Department of Housing and Urban Development.

The Ginnie Maes are of the "modified pass-through" type, the terms of which
provide for timely monthly payments by the issuers to the registered holders
(including the Fund) of their pro rate shares of the scheduled principal
payments on account of the mortgages backing these Ginnie Maes, plus any
prepayments of principal of such mortgages received, and interest on the
aggregate unpaid principal balance of these Ginnie Maes. Ginnie Maes are
guaranteed by GNMA as to timely payment of principal and interest. The full
faith and credit of the United States is pledged to the payment of all amounts
which may be required to be paid under the guaranty.

All mortgages in the pools backing the Ginnie Maes contained in the Portfolio
are mortgages on 1- to 4-family dwellings (amortizing over a period of up to 30
years). In general, the mortgages in these pools provide for equal
1

<PAGE>
monthly payments over the life of the mortgage (aside from prepayments),
designed to repay the principal of the mortgage over this period, together with
interest at a fixed rate on the unpaid balance.

The GNMA guaranty described above relate only to payment of principal of and
interest on the Ginnie Maes in the Portfolio and not to the Units of the Fund.

PORTFOLIO SUPERVISION

The Fund follows a buy and hold investment strategy in contrast to the
frequent portfolio changes of a managed fund based on economic, financial and
market analyses. Experienced financial analysts regularly review the Portfolio
and a Security may be sold in certain circumstances including the occurrence of
a default in payment on the Security or any other securities backed by the full
faith and credit of the United States, institution of certain legal proceedings,
if the Security becomes inconsistent with the Fund's investment objectives, a
decline in the price of the Security or the occurrence of other market or credit
factors that, in the opinion of the Sponsors, makes retention of the Security
detrimental to the interests of investors.

The Sponsors and the Trustee are not liable for any default or defect in a
Security. If a contract to purchase any Security fails, the Sponsors may
generally deposit a replacement security so long as it is a security issued and
guaranteed by GNMA, has a fixed maturity date substantially similar to the
failed Security and does not cause the Fund to cease to be rated AAA by Standard
& Poor's. A replacement security must be deposited within 110 days after deposit
of the failed contract, at a cost that does not exceed the funds reserved for
purchasing the failed Security and at a yield to maturity and current return
substantially equivalent (considering then current market conditions and
relative creditworthiness) to those of the failed Security, as of the date the
failed contract was deposited.

FUND RATING

Units of the Fund have been rated AAA by Standard & Poor's (see Appendix A).
Standard & Poor's has been compensated by the Underwriters for its services.

RISK FACTORS

An investment in the Fund entails certain risks, including the risk that the
value of your investment will decline with increases in interest rates and that
payments of principal may be received sooner than anticipated, especially if
interest rates decline. Generally speaking, securities with longer maturities
will fluctuate in value more than securities with shorter maturities. In recent
years there have been wide fluctuations in interest rates and in the value of
fixed-rate bonds generally. The Sponsors cannot predict the direction or scope
of any future fluctuations.

Certain of the Securities may have been deposited at a market discount or
premium principally because their interest rates are lower or higher than
prevailing rates on comparable debt securities. The current returns of market
discount securities are lower than comparably rated securities selling at par
because discount securities tend to increase in market value as they approach
maturity. The current returns of market premium securities are higher than
comparably rated securities selling at par because premium securities tend to
decrease in market value as they approach maturity. Because part of the purchase
price is returned through current income payments and not at maturity, an early
redemption at par of a premium security will result in a reduction in yield to
the Fund. The value of Ginnie Maes purchased at a market discount will increase
in value faster than Ginnie Maes purchased at a market premium if interest rates
decrease. Conversely, if interest rates increase, the value of Ginnie Maes
purchased at a market discount will decrease faster than Ginnie Maes purchased
at a premium. In addition, if interest rates rise, the prepayment risk of higher
yielding, premium Ginnie Maes and the prepayment benefit for lower yielding,
discount Ginnie Maes will be reduced. The potential for appreciation on the
Securities, which could otherwise be expected to result from a decline in
interest rates, may tend to be limited by any increased prepayments by
mortgagors as interest rates decline. In addition, prepayments of principal on
Ginnie Maes purchased at a premium over par will result in some loss on
investment which prepayments on Ginnie Maes purchased at a discount from par
will result in some gain on investment. Market premium or discount attributable
to interest rate changes does not indicate market confidence or lack of
confidence in the issue.

The Securities in the Portfolio, though backed by GNMA, are subject to changes
in market value when interest rates fluctuate. The Fund seeks to protect against
declining interest rates by investing a portion of the Portfolio in longer-term
Securities, while if interest rates rise investors will be able to reinvest the
proceeds of principal returned each year in higher yielding obligations. It is
anticipated that equal portions of principal invested will be returned annually
as Securities mature.

<PAGE>
LITIGATION AND LEGISLATION

The Sponsors do not know of any pending litigation as of the date of this
Prospectus which might reasonably be expected to have a material adverse effect
upon the Fund. At any time after the initial date of deposit, litigation may be
initiated on a variety of grounds, or legislation may be enacted, affecting the
Securities in the Fund.

PAYMENT OF THE SECURITIES AND LIFE OF THE FUND

Monthly payments and prepayments of principal are made to the Fund in respect
of the mortgages underlying the Ginnie Maes. All of the mortgages in the pools
relating to the Ginnie Maes in the Portfolio are subject to prepayment without
any significant premium or penalty at the option of the mortgagors (i.e., the
homeowners). While the mortgages on 1- to 4-family dwellings underlying the
Ginnie Maes are amortized over a period of up to 30 years, it has been the
experience of the mortgage industry that the average life of comparable
mortgages, owing to prepayments, is much less. Generally speaking, a number of
factors, including mortgage market interest rates and homeowners mobility, will
affect the average life of the Ginnie Maes in the Portfolio. Changes in
prepayment patterns are influenced by changes in housing cycles and mortgage
refinancing could influence yield assumptions used in pricing the securities.

While the value of these mortgage backed securities generally fluctuates
inversely with changes in interest rates, it should be noted that their
potential for appreciation, which could otherwise be expected to result from a
decline in interest rates, may tend to be limited by any increased prepayments
by mortgagors as interest rates decline. Accordingly, the termination of the
Fund might be accelerated as a result of prepayments made as described above.

The size and composition of the Fund will also be affected by the level of
redemptions of Units that may occur from time to time. Principally, this will
depend upon the number of investors seeking to sell or redeem their Units and
whether or not the Sponsors are able to sell the Units acquired by them in the
secondary market. As a result, Units offered in the secondary market may not
represent the same face amount of Securities as on the initial date of deposit.
Factors that the Sponsors will consider in determining whether or not to sell
Units acquired in the secondary market include the size of the Fund relative to
its original size, the ratio of Fund expenses to income, the Fund's current and
long-term returns, the degree to which Units may be selling at a premium over
par and the cost of maintaining a current prospectus for the Fund. These factors
may also lead the Sponsors to seek to terminate the Fund earlier than its
mandatory termination date.

Early termination of a Fund or early payments of principal may have important
consequences to the investor, e.g., to the extent that Units were purchased with
a view to an investment of longer duration, the overall investment program of
the investor may require readjustment; or the overall return on investment may
be less or greater than anticipated, depending in part on whether the purchase
price paid for Units represented the payment of an overall premium or a
discount, respectively, above or below the state principal amounts of the
underlying mortgages.

FUND TERMINATION

The Fund will be terminated no later than the mandatory termination date
specified in Part A of the Prospectus. It will terminate earlier upon the
disposition of the last Security or upon the consent of investors holding 51% of
the Units. The Fund may also be terminated earlier by the Sponsors once the
total assets of the Fund have fallen below the minimum value specified in Part A
of the Prospectus. A decision by the Sponsors to terminate the Fund early will
be based on factors similar to those considered by the Sponsors in determining
whether to continue the sale of Units in the secondary market.

Notice of impending termination will be provided to investors and thereafter
Units will no longer be redeemable. On or shortly before termination, the Fund
will seek to dispose of any Securities remaining in the Portfolio although any
Security unable to be sold at a reasonable price may continue to be held by the
Trustee in a liquidating trust pending its final disposition. A proportional
share of the expenses associated with termination, including brokerage costs in
disposing of Securities, will be borne by investors remaining at that time. This
may have the effect of reducing the amount of proceeds those investors are to
receive in any final distribution.

HOW TO BUY UNITS

PUBLIC OFFERING PRICE

Units are available from any of the Sponsors, Underwriters and other
broker-dealers at the Public Offering Price plus accrued interest on the Units.
The Public Offering Price varies each Business Day with changes in the value of
the Portfolio and other assets and liabilities of the Fund. In the initial
offering period, the Public Offering Price is based on the next offer side
evaluation of the Securities, and includes a sales charge based on the number of
Units (see Initial Offering sales charge schedule in Appendix A). In the
secondary market (after the initial offering
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period), the Public Offering Price is based on the bid side evaluation of the
Bonds, and includes a sales charge based on the number of Units of the Fund
purchased in the secondary market on the same day by a single purchaser (see
Secondary Market sales charge schedule in Appendix A). Purchases in the
secondary market of one or more Series sponsored by the Sponsors that have the
same rates of sales charge may be aggregated.

To qualify for a reduced sales charge, the dealer must confirm that the sale
is to a single purchaser or is purchased for its own account and not for
distribution. For these purposes, Units held in the name of the purchaser's
spouse or child under 21 years of age are deemed to be purchased by a single
purchaser. A trustee or other fiduciary purchasing securities for a single trust
estate or single fiduciary account is also considered a single purchaser. This
procedure may be amended or terminated at any time without notice.

Employees of certain Sponsors and Sponsor affiliates and non-employee
directors of Merrill Lynch & Co. Inc. may purchase Units at any time at prices
including a sales charge of not less than $5 per 1,000 Units.

Net accrued interest is added to the Public Offering Price, the Sponsors'
Repurchase Price and the Redemption Price per Unit. This represents the interest
accrued on the Securities, net of Fund expenses, from the initial date of
deposit to, but not including, the settlement date for Units (less any prior
distributions of interest income to investors). Securities deposited also carry
accrued but unpaid interest up to the initial date of deposit. To avoid having
investors pay this additional accrued interest (which earns no return) when they
purchase Units, the Trustee advances and distributes this amount to the
Sponsors; it recovers this advance from interest received on the Securities.
Because of varying interest payment dates on the Securities, accrued interest at
any time will exceed the interest actually received by the Fund.

EVALUATIONS

Evaluations are determined by the independent Evaluator on each Business Day.
This excludes Saturdays, Sundays and the following holidays as observed by the
New York Stock Exchange: New Year's Day, Presidents' Day, Good Friday, Memorial
Day, Independence Day, Labor Day, Thanksgiving and Christmas, and the following
Federal holidays: Martin Luther King's Birthday, Columbus Day and Veterans Day.
Securities evaluations are generally determined on the basis of current bid or
offer prices for the Securities or comparable securities or by appraisal or by
any combination of these methods. Under current market conditions the bid prices
for the Ginnie Maes of the type deposited in the Portfolio are expected to be
1|4 to 1|2 of 1% less than the offer price. Neither the Sponsors, the Trustee or
the Evaluator will be liable for errors in the Evaluator's judgment. The fees of
the Evaluator will be borne by the Fund.

CERTIFICATES

Certificates for Units are issued upon request and may be transferred by
paying any taxes or governmental charges and by complying with the requirements
for redeeming Certificates (see How To Redeem or Sell Units below). Certain
Sponsors collect additional charges for registering and shipping Certificates to
purchasers. Lost or mutilated Certificates can be replaced upon delivery of
satisfactory indemnity and payment of costs.

HOW TO REDEEM OR SELL UNITS

You can redeem your Units at any time for net asset value. In addition, the
Sponsors have maintained an uninterrupted secondary market for Units for over 20
years and will ordinarily buy back Units at net asset value. The following
describes these two methods to redeem or sell Units in greater detail.

REDEEMING UNITS WITH THE TRUSTEE

You can always redeem your Units directly with the Trustee for net asset
value. This can be done by sending the Trustee a redemption request together
with any Unit certificates you hold, which must be properly endorsed or
accompanied by a written transfer instrument with signatures guaranteed by an
eligible institution. In certain instances, additional documents may be required
such as a trust instrument, certificate of corporate authority, certificate of
death or appointment as executor, administrator or guardian.

Within seven days after the Trustee's receipt of your request containing the
necessary documents, a check will be mailed to you in an amount equal to the net
asset value of your Units. Because of the sales charge, market movements or
changes in the Portfolio, net asset value at the time you redeem your Units may
be greater or less than the original cost of your Units. Net asset value is
calculated each Business Day by adding the value of the Securities, net accrued
interest, cash and the value of any other Fund assets; deducting unpaid taxes or
other governmental charges, accrued but unpaid Fund expenses, unreimbursed
Trustee advances, cash held to redeem Units or for distribution to investors and
the value of any other Fund liabilities; and dividing the result by the number
of outstanding Units.

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As long as the Sponsors are maintaining a secondary market for Units (ad
described below), the Trustee will not actually redeem your Units but will sell
them to the Sponsors for net asset value. If the Sponsors are not maintaining a
secondary market, the Trustee will redeem your Units for net asset value or will
sell your Units in the over-the-counter market if the Trustee believes it will
obtain a higher net price for your Units. If the Trustee is able to sell the
Units for a net price higher than net asset value, you will receive the net
proceeds of the sale.

Securities are evaluated on the offer side during the initial offering period
and on the bid side thereafter.

If cash is not available in the Fund's Income and Capital Accounts to pay
redemptions, the Trustee may sell Securities selected by the Agent for the
Sponsors, based on market and credit factors determined to be in the best
interest of the Fund. These sales are often made at times when the Securities
would not otherwise be sold and may result in lower prices than might be
realized otherwise and will also reduce the size and diversity of the Fund. If
Securities are being sold during a time when additional Units are being created
by the purchase of additional Securities (as described under Portfolio
Selection), Securities will be sold in a manner designed to maintain, to the
extent practicable, the proportionate relationship among the face amounts of
each Security in the Portfolio.

Redemptions may be suspended or payment postponed (i) if the New York Stock
Exchange is closed (other than customary weekend and holiday closings), (ii) if
the SEC determines that trading on the New York Stock Exchange is restricted or
that an emergency exists making disposal or evaluation of the Securities not
reasonably practicable or (iii) for any other period permitted by SEC order.

SPONSORS' SECONDARY MARKET FOR UNITS

The Sponsors, while not obligated to do so, will buy back Units at net asset
value without any other fee or charge as long as they are maintaining a
secondary market for Units. Because of the sales charge, market movements or
changes in the portfolio, net asset value at the time you sell your Units may be
greater or less than the original cost of your Units. The Sponsors may resell
the Units to other buyers or redeem the Units by tendering them to the Trustee.
You should consult your financial professional for current market prices to
determine if other broker-dealers or banks are offering higher prices for Units.

The Sponsors may discontinue the secondary market for Units without prior
notice if the supply of Units exceeds demand or for other business reasons.
Regardless of whether the Sponsors maintain a secondary market, you have the
right to redeem your Units for net asset value with the Trustee at any time, as
described above.

INCOME, DISTRIBUTIONS AND REINVESTMENT

INCOME

The terms of the Ginnie Maes provide for payment to the holders thereof
(including the Fund), on the fifteenth day of each month, of amounts collected
by or due to the issuers thereof with respect to the underlying mortgages during
the preceding month, except for the first payment, which is not due until 45
days after the initial issue date of the Security. Interest received is credited
to an Income Account and other receipts to a Capital Account. A Reserve Account
may be created by withdrawing from the Income and Capital Accounts amounts
considered appropriate by the Trustee to reserve for any material amount that
may be payable out of the Fund.

DISTRIBUTIONS

Each Unit receives an equal share of monthly distributions of interest income
net of estimated expenses. Along with the Monthly Income Distributions, the
Trustee will distribute the investor's pro rata share of principal received from
any disposition of a Security to the extent available for distribution. As each
Security in the Portfolio matures, the balance in the Capital Account will be
distributed on or about the second business day following the maturity date to
investors of record on the business day immediately preceding the distribution
day.

The initial estimated annual income per Unit, after deducting estimated annual
Fund expenses as stated in Part A of the Prospectus, will change as prepayments
occur on the underlying mortgages, as Securities mature, are called or sold or
otherwise disposed of, as replacement obligations are deposited and as Fund
expenses change. Because the Portfolio is not actively managed, income
distributions will generally not be affected by changes in interest rates and
the amount of income should be substantially maintained as long as the Portfolio
remains unchanged; however, optional prepayments or other Portfolio changes may
occur more frequently when interest rates decline, which would result in early
returns of principal and possibly earlier termination of the Fund.

REINVESTMENT

Distributions will be paid in cash unless you elect to have your distributions
reinvested in The GNMA Fund Investment Accumulation Program, Inc. The Program is
an open-end management investment company whose primary investment objective is
to obtain a high level of current income through investment in a portfolio of
Ginnie
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Maes. Investors participating in the Program will be taxed on their reinvested
distributions in the manner described in Taxes even though distributions are
reinvested in the Program. For more complete information about the Program,
including charges and expenses, return the enclosed form for a prospectus. Read
it carefully before you decide to participate. Notice of election to participate
must be received by the Trustee in writing at least ten days before the Record
Day for the first distribution to which the notice is to apply.

FUND EXPENSES

Estimated annual Fund expenses are listed in Part A of the Prospectus; if
actual expenses exceed the estimate, the excess will be borne by the Fund. The
Trustee's fee shown in Part A of this Prospectus assumes that the Fund will
reach a size estimated by the Sponsors and is based on a sliding fee scale that
reduces the per 1,000 units Trustee's fee as the size of the Fund increases. The
Trustee's annual fee is payable in monthly installments. The Trustee also
benefits when it holds cash for the Fund in non-interest bearing accounts.
Possible additional charges include Trustee fees and expenses for maintaining
the Fund's registration statement current with Federal and State authorities,
extraordinary services, costs of indemnifying the Trustee and the Sponsors,
costs of action taken to protect the Fund and other legal fees and expenses,
Fund termination expenses and any governmental charges. The Trustee has a lien
on Fund assets to secure reimbursement of these amounts and may sell Securities
for this purpose if cash is not available. The Sponsors receive an annual fee of
a maximum of $0.25 per $1,000 face amount to reimburse them for the cost of
providing Portfolio supervisory services to the Fund. While the fee may exceed
their costs of providing these services to the Fund, the total supervision fees
from all Series of Government Securities Income Fund will not exceed their costs
for these services to all of those Series during any calendar year. The Sponsors
may also be reimbursed for their costs of providing bookkeeping and
administrative services to the Fund, currently estimated at $0.10 per Unit. The
Trustee's, Sponsors' and Evaluator's fees may be adjusted for inflation without
investors' approval.

All or some portion of the expenses incurred in establishing the Fund,
including the cost of the initial preparation of documents relating to the Fund,
Federal and State registration fees, the initial fees and expenses of the
Trustee, legal expenses and any other out-of-pocket expenses will be paid by the
Fund and amortized over five years. Any balance of the expenses incurred in
establishing the Fund, as well as advertising and selling expenses will be paid
from the Underwriting Account at no charge to the Fund. Sales charges on Defined
Asset Funds range from under 1.0% to 5.5%. This may be less than you might pay
to buy and hold a comparable managed fund. Defined Asset Funds can be a
cost-effective way to purchase and hold investments. Annual operating expenses
are generally lower than for managed funds. Because Defined Asset Funds have no
management fees, limited transaction costs and no ongoing marketing expenses,
operating expenses are generally less than 0.25% a year. When compounded
annually, small differences in expense ratios can make a big difference in your
investment results.

TAXES

TAXATION OF THE FUND

The Fund intends to qualify for and elect the special tax treatment applicable
to "regulated investment companies" under Sections 851-855 of the Internal
Revenue Code of 1986, as amended (the "Code"). Qualification and election as a
"regulated investment company" involve no supervision of investment policy or
management by any government agency. If the Fund qualifies as a "regulated
investment company" and distributes to investors 90% or more of its taxable
income without regard to its net capital gain (net capital gain is defined as
the excess of net long-term capital gain over short-term capital loss), it will
not be subject to Federal income tax on the portion of its taxable income
(including any net capital gain) it distributes to investors in a timely manner.
In addition, the Fund will not be subject to the 4% excise tax on certain
undistributed income of "regulated investment companies" to the extent it
distributes to investors in a timely manner at least 98% of its taxable income
(including any net capital gain). It is anticipated that the Fund will not be
subject to Federal income tax or the excise tax because the Indenture requires
the distribution of the Fund's taxable income (including any net capital gain)
in a timely manner. Although all or a portion of the Fund's taxable income
(including any net capital gain) for a calendar year may be distributed shortly
after the end of the calendar year, such a distribution will be treated for
Federal income tax purposes as having been received by investors during the
calendar year.

DISTRIBUTIONS

Distributions to investors of the Fund's interest income, gain that is treated
as ordinary income under the market discount rules, and any net short-term
capital gain in any year will be taxable as ordinary income to investors to the
extent of the Fund's taxable income (without regard to any net capital gain) for
that year. Any excess will be treated as a return of capital and will reduce the
investor's basis in his Units and, to the extent that they exceed his basis,
will be treated as a gain from the sale of his Units as discussed below. It is
anticipated that substantially all of
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the distributions of the Fund's interest income, ordinary gain and any net
short-term capital gain will be taxable as ordinary income to investors.

Distributions that are taxable as ordinary income to investors will constitute
dividends for Federal income tax purposes but will not be eligible for the
dividends-received deduction for corporations. Distributions of the Fund's net
capital gain (designated as capital gain dividends by the Fund) will be taxable
to investors as long-term capital gain, regardless of the time the Units have
been held by an investor. An investor will recognize taxable gain or loss if the
investor sells or redeems his Units. Any gain or loss arising from (or treated
as arising from) the sale or redemption of Units will be capital gain or loss,
except in the case of a dealer. Capital gains are currently taxed at the same
rate as ordinary income. However, the excess of net long-term capital gains over
net short-term capital losses may be taxed at a lower rate than ordinary income
for certain noncorporate taxpayers. A capital gain or loss is long-term if the
asset is held for more than one year and short-term if held for one year or
less. However, any capital loss on the sale or redemption of a Unit that an
investor has held for six months or less will be a long-term capital loss to the
extent of any capital gain dividends previously distributed to the investor by
the Fund. The deduction of capital losses is subject to limitations.

Payments of principal on underlying GNMA mortgages or sales of Securities by
the Fund (to meet redemptions or otherwise) may give rise to gain (including
market discount) to the Fund. The amount of gain will be based upon the cost of
the Security to the Fund and will be without regard to the value of the Security
when a particular investor purchases his Units. Such gain must be distributed to
investors to avoid Federal income (or excise) taxation to the Fund. In the case
of sales to meet redemptions, some or all of such gain must be so distributed to
nonredeeming investors. Any such distribution will be taxable to investors as
discussed above (i.e., as ordinary income or long-term capital gain), even if as
to a particular investor the distribution economically represents a return of
capital. Since such distributions do not reduce a investor's tax basis in his
Units, an investor will have a corresponding capital loss (or a reduced amount
of gain) on a subsequent sale or redemption of his Units.

The Federal tax status of each year's distributions will be reported to
investors and to the Internal Revenue Service. The foregoing discussion relates
only to the Federal income tax status of the Fund and to the tax treatment of
distributions by the Fund to U.S. investors. Investors who are not U.S. citizens
or residents should be aware that distributions from the Fund generally will be
subject to a withholding tax of 30%, or a lower treaty rate, and should consult
their own tax advisers to determine whether investment in the Fund is
appropriate. Distributions may also be subject to state and local taxation and
investors should consult their own tax advisers in this regard.

Investors will be taxed in the manner described above regardless of whether
distributions from the Fund are actually received by the investor or are
automatically reinvested (see Income, Distributions and Reinvestment--
Reinvestment above).

RETIREMENT PLANS

This Series of Government Securities Income Fund may be well suited for
purchase by Individual Retirement Accounts ("IRAs"), Keogh plans, pension funds
and other qualified retirement plans, certain of which are briefly described
below. Generally, capital gains and income received in each of the foregoing
plans are exempt from Federal taxation. All distributions from such plans are
generally treated as ordinary income but may, in some cases, be eligible for
special 5 or 10 year averaging or tax-deferred rollover treatment. Investors in
IRAs, Keogh plans and other tax-deferred retirement plans should consult their
plan custodian as to the appropriate disposition of distributions. Investors
considering participation in any of these plans should review specific tax laws
related thereto and should consult their attorneys or tax advisors with respect
to the establishment and maintenance of any of these plans. These plans are
offered by brokerage firms, including the Sponsor of this Fund, and other
financial institutions. Fees and charges with respect to such plans may vary.

Retirement Plans for the Self-Employed--Keogh Plans. Units of the Fund may be
purchased by retirement plans established for self-employed individuals,
partnerships or unincorporated companies ("Keogh plans"). The assets of a Keogh
plan must be held in a qualified trust or other arrangement which meets the
requirements of the Code. Keogh plan participants may also establish separate
IRAs (see below) to which they may contribute up to an additional $2,000 per
year ($2,250 in a spousal account).

Individual Retirement Account--IRAs. Any individual can make use of a
qualified IRA arrangement for the purchase of Units of the Fund. Any individual
(including one covered by an employer retirement plan) can make a contribution
in an IRA equal to the lesser of $2,000 ($2,250 in a spousal account) or 100% of
earned income; such investment must be made in cash. However, the deductible
amount an individual may contribute will be reduced if the individual's adjusted
gross income exceeds $25,000 (in the case of a single individual), $40,000 (in
the case of married individuals filing a joint return) or $200 (in the case of a
married individual filing a separate return). Certain transactions which are
prohibited under Section 408 of the Code will cause all or a portion of the
amount in an
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IRA to be deemed to be distributed and subject to tax at that time. Unless
nondeductible contributions were made in 1987 or a later year, all distributions
from an IRA will be treated as ordinary income but generally are eligible for
tax-deferred rollover treatment. Taxable distributions made before attainment of
age 591/2, except in the case of a participant's death or disability or where
the amount distributed is part of a series of substantially equal periodic (at
least annual) payments that are to be made over the life expectancies of the
participant and his or her beneficiary, are generally subject to a surtax in an
amount equal to 10% of the distribution.

Corporate Pension and Profit-Sharing Plans. A pension or profit-sharing plan
for employees of a corporation may purchase Units of the Fund.

RECORDS AND REPORTS

The Trustee keeps a register of the names, addresses and holdings of all
investors. The Trustee also keeps records of the transactions of the Fund,
including a current list of the Securities and a copy of the Indenture, and
supplemental information on the operations of the Fund and the risks associated
with the Securities held by the Fund, which may be inspected by investors at
reasonable times during business hours.

With each distribution, the Trustee includes a statement of the interest and
any other receipts being distributed. Within five days after deposit of
Securities in exchange or substitution for Securities (or contracts) previously
deposited, the Trustee will send a notice to each investor, identifying both the
Securities removed and the replacement Securities deposited. The Trustee sends
each investor of record an annual report summarizing transactions in the Fund's
accounts and amounts distributed during the year and Securities held, the number
of Units outstanding and the Redemption Price at year end, the interest received
by the Fund on the Securities, the gross proceeds received by the Fund from the
disposition of any Security (resulting from redemption or payment at maturity or
sale of any Security), and the fees and expenses paid by the Fund, among other
matters. The Trustee will also furnish annual information returns to each
investor. Investors may obtain copies of Security evaluations from the Trustee
to enable them to comply with federal and state tax reporting requirements. Fund
accounts are audited annually by independent accountants selected by the
Sponsors. Audited financial statements are available from the Trustee on
request.

TRUST INDENTURE

The Fund is a "unit investment trust" created under New York law by a Trust
Indenture among the Sponsors, the Trustee and the Evaluator. This Prospectus
summarizes various provisions of the Indenture, but each statement is qualified
in its entirety by reference to the Indenture.

The Indenture may be amended by the Sponsors and the Trustee without consent
by investors to cure ambiguities or to correct or supplement any defective or
inconsistent provision, to make any amendment required by the SEC or other
governmental agency or to make any other change not materially adverse to the
interest of investors (as determined in good faith by the Sponsors). The
Indenture may also generally be amended upon consent of investors holding 51% of
the Units. No amendment may reduce the interest of any investor in the Fund
without the investor's consent or reduce the percentage of Units required to
consent to any amendment without unanimous consent of investors. Investors will
be notified on the substance of any amendment.

The Trustee may resign upon notice to the Sponsors. It may be removed by
investors holding 51% of the Units at any time or by the Sponsors without the
consent of investors if it becomes incapable of acting or bankrupt, its affairs
are taken over by public authorities, or if under certain conditions the
Sponsors determine in good faith that its replacement is in the best interest of
the investors. The Evaluator may resign or be removed by the Sponsors and the
Trustee without the investors' consent. The resignation or removal of either
becomes effective upon acceptance of appointment by a successor; in this case,
the Sponsors will use their best efforts to appoint a successor promptly;
however, if upon resignation no successor has accepted appointment within 30
days after notification, the resigning Trustee or Evaluator may apply to a court
of competent jurisdiction to appoint a successor.

Any Sponsor may resign so long as one Sponsor with a net worth of $2,000,000
remains and is agreeable to the resignation. A new Sponsor may be appointed by
the remaining Sponsors and the Trustee to assume the duties of the resigning
Sponsor. If there is only one Sponsor and it fails to perform its duties or
becomes incapable of acting or bankrupt or its affairs are taken over by public
authorities, the Trustee may appoint a successor Sponsor at reasonable rates of
compensation, terminate the Indenture and liquidate the Fund or continue to act
as Trustee without a Sponsor. Merrill Lynch, Pierce, Fenner & Smith Incorporated
has been appointed as Agent for the Sponsors by the other Sponsors.

The Sponsors, the Trustee and the Evaluator are not liable to investors or any
other party for any act or omission in the conduct of their responsibilities
absent bad faith, willful misfeasance, negligence (gross negligence in
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the case of a Sponsor or the Evaluator) or reckless disregard of duty. The
Indenture contains customary provisions limiting the liability of the Trustee.

MISCELLANEOUS

LEGAL OPINION

The legality of the Units has been passed upon by Davis Polk & Wardwell, 450
Lexington Avenue, New York, New York 10017, as special counsel for the Sponsors.

AUDITORS

The Statement of Condition in Part A of the Prospectus was audited by Deloitte
& Touche LLP, independent accountants, as stated in their opinion. It is
included in reliance upon that opinion given on the authority of that firm as
experts in accounting and auditing.

TRUSTEE

The Trustee and its address are stated on the back cover of the Prospectus.
The Trustee is subject to supervision by the Federal Deposit Insurance
Corporation, the Board of Governors of the Federal Reserve System and New York
State banking authorities.

SPONSORS

The Sponsors are listed on the back cover of the Prospectus. They may include
Merrill Lynch, Pierce, Fenner & Smith Incorporated, a wholly-owned subsidiary of
Merrill Lynch Co. Inc.; Smith Barney Inc., an indirect wholly-owned subsidiary
of The Travelers Inc.; Prudential Securities Incorporated, an indirect
wholly-owned subsidiary of the Prudential Insurance Company of America; Dean
Witter Reynolds, Inc., a principal operating subsidiary of Dean Witter Discover
& Co. and PaineWebber Incorporated, a wholly-owned subsidiary of PaineWebber
Group Inc. Each Sponsor, or one of its predecessor corporations, has acted as
Sponsor of a number of series of unit investment trusts. Each Sponsor has acted
as principal underwriter and managing underwriter of other investment companies.
The Sponsors, in addition to participating as members of various selling groups
or as agents of other investment companies, execute orders on behalf of
investment companies for the purchase and sale of securities of these companies
and sell securities to these companies in their capacities as brokers or dealers
in securities.

CODE OF ETHICS

The Agent for the Sponsors has adopted a code of ethics requiring preclearance
and reporting of personal securities transactions by its personnel who have
access to information on Defined Asset Funds portfolio transactions. The code is
intended to prevent any act, practice or course of conduct which would operate
as a fraud or deceit on any Fund and to provide guidance to these persons
regarding standards of conduct consistent with the Agent's responsibilities to
the Funds.

PUBLIC DISTRIBUTION

In the initial offering period Units will be distributed to the public through
the Underwriting Account and dealers who are members of the National Association
of Securities Dealers, Inc. The initial offering period is 30 days or less if
all Units are sold. If some Units initially offered have not been sold, the
Sponsors may extend the initial offering period for up to four additional
successive 30-day periods.

The Sponsors intend to qualify Units for sale in all states in which
qualification is deemed necessary through the Underwriting Account and by
dealers who are members of the National Association of Securities Dealers, Inc.
The Sponsors do not intend to qualify Units for sale in any foreign countries
and this Prospectus does not constitute an offer to sell Units in any country
where Units cannot lawfully be sold. Sales to dealers and to introducing
dealers, if any, will initially be made at prices which represent a concession
from the Public Offering Price, but the Agent for the Sponsors reserves the
right to change the rate of any concession from time to time. Any dealer or
introducing dealer may reallow a concession up to the concession to dealers.

UNDERWRITERS' AND SPONSORS' PROFITS

Upon sale of the Units, the Underwriters will be entitled to receive sales
charges; each Underwriter's interest in the Underwriting Account will depend
upon the number of Units acquired through the issuance of additional Units. The
Sponsors also realize a profit or loss on deposit of the Securities equal to the
difference between the cost of the Securities to the Fund (based on the offer
side evaluation on the initial date of deposit) and the Sponsors' cost of the
Securities. During the initial offering period, the Underwriting Account also
may realize profits or sustain losses as a result of fluctuations after the
initial date of deposit in the Public Offering Price of the Units. In
maintaining a secondary market for Units, the Sponsors will also realize profits
or sustain losses in the amount of any
9

<PAGE>
difference between the prices at which they buy Units and the prices at which
they resell these Units (which include the sales charge) or the prices at which
they redeem the Units. Cash, if any, made available by buyers of Units to the
Sponsors prior to a settlement date for the purchase of Units may be used in the
Sponsors' businesses to the extent permitted by Rule 15c3-3 under the Securities
Exchange Act of 1934 and may be of benefit to the Sponsors.

FUND PERFORMANCE

Information on the performance of the Fund for various periods, on the basis
of changes in Unit price plus the amount of income and principal distributions
reinvested, may be included from time to time in advertisements, sales
literature, reports and other information furnished to current or prospective
investors. Total return figures are not averaged, and may not reflect deduction
of the sales charge, which would decrease the return. Average annualized return
figures reflect deduction of the maximum sales charge. No provision is made for
any income taxes payable.

Past performance may not be indicative of future results. The Fund is not
actively managed. Unit price and return fluctuate with the value of the
Securities in the Portfolio, so there may be a gain or loss when Units are sold.

Fund performance may be compared to performance data from publications such as
Donoghue's Money Fund Report, Lehman Brothers Intermediate Treasury Bond Index,
Lipper Analytical Services, Inc., Morningstar Publications, Inc., Money
Magazine, The New York Times, U.S. News and World Report, Barron's, Business
Week, CDA Investment Technology, Inc., Forbes Magazine or Fortune Magazine. As
with other performance data, performance comparisons should not be considered
representative of the Fund's relative performance for any future period.

DEFINED ASSET FUNDS

For decades informed investors have purchased unit investment trusts for
dependability and professional selection of investments. Defined Asset Funds'
philosophy is to allow investors to "buy with knowledge" (because, unlike
managed funds, the portfolio of bonds and the return are relatively fixed) and
"hold with confidence" (because the portfolio is professionally selected and
regularly reviewed). Defined Asset Funds offers an array of simple and
convenient investment choices, suited to fit a wide variety of personal
financial goals--a buy and hold strategy for capital accumulation, such as for
children's education or retirement, or attractive, regular current income
consistent with the preservation of principal. Unit investment trusts are
particularly suited for the many investors who prefer to seek long-term income
by purchasing sound investments and holding them, rather than through active
trading. Few individuals have the knowledge, resources or capital to buy and
hold a diversified portfolio on their own; it would generally take a
considerable sum of money to obtain the breadth and diversity that Defined Asset
Funds offer. One's investment objectives may call for a combination of Defined
Asset Funds.

One of the most important investment decisions you face may be how to allocate
your investments among asset classes. Diversification among different kinds of
investments can balance the risks and rewards of each one. Most investment
experts recommend stocks for long-term capital growth. Long-term corporate bonds
offer relatively high rates of interest income. By purchasing both defined
equity and defined bond funds, investors can receive attractive current income,
as well as growth potential, offering some protection against inflation. From
time to time various advertisements, sales literature, reports and other
information furnished to current or prospective investors may present the
average annual compounded rate of return of selected asset classes over various
periods of time, compared to the rate of inflation over the same periods.

SUPPLEMENTAL INFORMATION

Upon writing or calling the Trustee shown on the back cover of this
Prospectus, investors will receive at no cost to the investor supplemental
information about the Fund, which has been filed with the SEC. The supplemental
information includes more detailed risk factor disclosure about the types of
Securities that may be part of the Fund's Portfolio and general information
about the structure and operation of the Fund.

<PAGE>

APPENDIX A

INITIAL OFFERING SALES CHARGE SCHEDULE

<TABLE>
<CAPTION>
SALES CHARGE
(GROSS UNDERWRITING PROFIT)
------------------------------------
AS PERCENT OF AS PERCENT OF
OFFER SIDE PUBLIC NET AMOUNT
NUMBER OF UNITS OFFERING PRICE INVESTED
- -------------------------------------------------- ------------------ --------------

<S> <C> <C> <C> <C>
Less than 100,000. . . . . . . . . . . . . . . . 4.00% 4.167%
100,000-499,999. . . . . . . . . . . . . . . . . 3.00 3.093
500,000-749,999. . . . . . . . . . . . . . . . . 2.50 2.564
750,000-999,999. . . . . . . . . . . . . . . . . 2.00 2.041
1,000,000 or more. . . . . . . . . . . . . . . . 1.50 1.523

</TABLE>

SECONDARY MARKET SALES CHARGE SCHEDULE

<S> <C> <C> <C> <C>
Less than 100,000. . . . . . . . . . . . . . 4.25% 4.439%
100,000-499,999. . . . . . . . . . . . . . . 3.25 3.359
500,000-749,999. . . . . . . . . . . . . . . 2.50 2.564
750,000-999,999. . . . . . . . . . . . . . . 2.00 2.041
1,000,000 or more. . . . . . . . . . . . . . 1.50 1.523

</TABLE>

The concession to dealers is 65% of the effective sales charge.
a-1
<PAGE>
Defined
Asset FundsSM

<S> <C>

SPONSORS/UNDERWRITERS: GOVERNMENT SECURITIES INCOME FUND
Merrill Lynch,
Pierce, Fenner & Smith Incorporated
Defined Asset Funds GNMA Series--1Z
P.O. Box 9051 A Unit Investment Trust
Princeton, NJ 08543-9051
(609) 282-8500 This Prospectus does not contain all of the information with respect
to the investment company set forth in its registration statement
Smith Barney Inc. and exhibits relating thereto which have been filed with the
Unit Trust Department Securities and Exchange Commission, Washington, D.C. under the
388 Greenwich Street--23rd Floor Securities Act of 1933 and the Investment Company Act of 1940, and
New York, NY 10013 to which reference is hereby made, and to which reference is hereby
(212) 816-4000 made. Copies of filed material can be obtained from the Public
Reference Section of the Commission, 450 Fifth Street, N.W.,
PaineWebber Incorporated Washington, D.C. 20549 at prescribed rates. The Commission also
1200 Harbor Blvd. maintains a Web site that contains information statements and other
Weehawken, NJ 07087 information regarding registrants such as Defined Asset Funds that
(201) 902-3000 file electronically with the Commission at http://www.sec.gov.
---------------------
Prudential Securities Incorporated
One New York Plaza No person is authorized to give any information or to make any
New York, NY 10292 representations with respect to this investment company not
(212) 778-6164 contained in this Prospectus; and any information or representation
not contained herein must not be relied upon as having been
Dean Witter Reynolds Inc. authorized.
Two World Trade Center ---------------------
59th Floor
New York, NY 10048 When Units of this Series are no longer available, this Prospectus
(212) 392-2222 may be used as a preliminary prospectus for a future series, and
investors should note the following:
ADDITIONAL UNDERWRITERS:
Gruntal & Co. Incorporated Information contained herein is subject to amendment. A registration
14 Wall Street statement relating to those securities has been filed with the
New York, NY 10005 Securities and Exchange Commission. These securities may not be sold
1-800-223-7634 nor may offers to buy be accepted prior to the time the registration
statement becomes effective. This prospectus shall not constitute an
A.G. Edwards & Sons Inc. offer to sell or the solicitation of an offer to buy nor shall there
One North Jefferson be any sale of these securities in any State in which such offer,
St. Louis, Missouri 63103 solicitation or sale would be unlawful prior to registration or
314-289-3900 qualification under the securities laws of any such state.

EVALUATOR:
Kenny S&P Evaluation Services
65 Broadway
New York, NY 10006

TRUSTEE:
The Chase Manhattan Bank
Customer Service Retail Department
770 Broadway-7th Floor
New York, NY 10003-9598
1-800-323-1508

15354--8/96

</TABLE>

<PAGE>
PART II

ADDITIONAL INFORMATION NOT INCLUDED IN THE PROSPECTUS

A. The following information relating to the Depositors is incorporated by
reference to the SEC filings indicated and made a part of this Registration
Statement.

I. Bonding arrangements of each of the Depositors are incorporated by reference to Item A of Part II to the Registration
Statement on Form S-6 under the Securities Act of 1933 for Municipal Investment Trust Fund, Monthly Payment Series--573
Defined Asset Funds (Reg. No. 333-08241).

II. The date of organization of each of the Depositors is set forth in Item B of Part II to the Registration Statement on
Form S-6 under the Securities Act of 1933 for Municipal Investment Trust Fund, Monthly Payment Series--573 Defined Asset
Funds (Reg. No. 333-08241) and is herein incorporated by reference thereto.

III The Charter and By-Laws of each of the Depositors are incorporated herein by reference to Exhibits 1.3 through 1.12 to
. the Registration Statement on Form S-6 under the Securities Act of 1933 for Municipal Investment Trust Fund, Monthly
Payment Series--573 Defined Asset Funds (Reg. No. 333-08241).

IV. Information as to Officers and Directors of the Depositors has been filed pursuant to Schedules A and D of Form BD under
Rules 15b1-1 and 15b3-1 of the Securities Exchange Act of 1934 and is incorporated by reference to the SEC filing
indicated and made a part of this Registration Statement.

Merrill Lynch, Pierce, Fenner & Smith Incorporated. . . . . . . . . . . . . . 8-7221

Prudential Securities Incorporated. . . . . . . . . . . . . . . . . . . . . . 8-27154

Smith Barney Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-8177

Dean Witter Reynolds Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 8-14172

PaineWebber Incorporated. . . . . . . . . . . . . . . . . . . . . . . . . . . 8-16267

B. The Internal Revenue Service Employer Identification Numbers of the Sponsors and Trustee are as follows:

Merrill Lynch, Pierce, Fenner & Smith Incorporated. . . . . . . . . . . . . . 13-5674085

Prudential Securities Incorporated. . . . . . . . . . . . . . . . . . . . . . 22-2347336

Smith Barney Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-1912900

Dean Witter Reynolds Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 94-0899825

PaineWebber Incorporated. . . . . . . . . . . . . . . . . . . . . . . . . . . 13-2638166

The Chase Manhattan Bank, Trustee. . . . . . . . . . . . . . . . . . . . . . 13-4994650

</TABLE>

II-1
<PAGE>
SERIES OF GOVERNMENT SECURITIES INCOME FUND,
MUNICIPAL INVESTMENT TRUST FUND,
EQUITY INCOME FUND AND DEFINED ASSET FUNDS MUNICIPAL INSURED SERIES
DESIGNATED PURSUANT TO RULE 487 UNDER THE SECURITIES ACT OF 1933

SEC
SERIES NUMBER FILE NUMBER

<S> <C>

Government Securities Income Fund, Monthly Payment U.S. Treasury Series-1. . . . . 2-81969

Municipal Investment Trust Fund, Four Hundred Thirty-Eighth Monthly Payment Series 33-16561

Government Securities Income Fund, Monthly Payment U.S. Treasury Series-8. . . . . 33-31728

Municipal Investment Trust Fund, Multistate Series-48. . . . . . . . . . . . . . . 33-50247

Government Securities Income Fund, U.S. Treasury Strategy Trust-1. . . . . . . . . 33-48915

Defined Asset Funds Municipal Insured Series. . . . . . . . . . . . . . . . . . . 33-54565

Equity Income Fund, Select Ten Portfolio--1995 Series. . . . . . . . . . . . . . . 33-55807

</TABLE>

CONTENTS OF REGISTRATION STATEMENT

The Registration Statement on Form S-6 comprises the following papers and
documents:

The facing sheet of Form S-6.

The Cross-Reference Sheet (incorporated by reference to the Cross-Reference
Sheet to the Registration Statement of Defined Asset Funds, Municipal Insured
Series, 1933 Act File No. 33-54565).

The Prospectus.

Additional Information not included in the Prospectus (Part II). Consent of
independent accountants.

The following exhibits:

<S> <C> <C>
1.1 -- Form of Trust Indenture (incorporated by reference to Exhibit 1.1 to the Registration Statement of
Government Securities Income Fund, GNMA Series 1Y, 1933 Act File No. 33-57873).
1.1.1 -- Form of Standard Terms and Conditions of Trust Effective October 21, 1993 (incorporated by reference
to Exhibit 1.1.1 to the Registration Statement of Municipal Investment Trust Fund, Multistate Series
48, 1933 Act File No. 33-50247).
1.2 -- Form of Master Agreement Among Underwriters (incorporated by reference to Exhibit 1.2 to the
Registration Statement of The Corporate Income Fund, One Hundred Ninety-Fourth Monthly Payment
Series, 1933 Act File No. 2-90925).
2.1 -- Form of Certificate of Beneficial Interest (included in Exhibit 1.1.1).
3.1 -- Opinion of counsel as to the legality of the securities being issued including their consent to the
use of their names under the heading "Miscellaneous--Legal Opinion" in the Prospectus.
4.1 -- Consent of the Evaluator.
5.1 -- Consent of Independent Accountants
9.1 -- Information Supplement (incorporated by reference to Exhibit 9.1 to the Registration Statement of
Government Securities Income Fund, Freddie Mac Series 12, 1933 Act File No. 33-56849).

</TABLE>

<PAGE>
SIGNATURES

The registrant hereby identifies the series numbers of Government Securities
Income Fund, Municipal Investment Trust Fund, Equity Income Fund and Defined
Asset Funds Municipal Insured Series listed on page R-1 for the purposes of the
representations required by Rule 487 and represents the following:

1) That the portfolio securities deposited in the series as to which this
registration statement is being filed do not differ materially in type or
quality from those deposited in such previous series;

2) That, except to the extent necessary to identify the specific portfolio
securities deposited in, and to provide essential information for, the
series with respect to which this registration statement is being filed,
this registration statement does not contain disclosures that differ in any
material respect from those contained in the registration statements for
such previous series as to which the effective date was determined by the
Commission or the staff; and

3) That it has complied with Rule 460 under the Securities Act of 1933.

PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THE REGISTRANT
HAS DULY CAUSED THIS REGISTRATION STATEMENT OR AMENDMENT TO THE REGISTRATION
STATEMENT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED THEREUNTO DULY
AUTHORIZED IN THE CITY OF NEW YORK AND STATE OF NEW YORK ON THE 28TH DAY OF
AUGUST, 1996.

SIGNATURES APPEAR ON PAGES R-3, R-4, R-5, R-6 AND R-7.

A majority of the members of the Board of Directors of Merrill Lynch, Pierce,
Fenner & Smith Incorporated has signed this Registration Statement or Amendment
to the Registration Statement pursuant to Powers of Attorney authorizing the
person signing this Registration Statement or Amendment to the Registration
Statement to do so on behalf of such members.

A majority of the members of the Board of Directors of Prudential Securities
Incorporated has signed this Registration Statement or Amendment to the
Registration Statement pursuant to Powers of Attorney authorizing the person
signing this Registration Statement or Amendment to the Registration Statement
to do so on behalf of such members.

A majority of the members of the Board of Directors of Smith Barney Inc. has
signed this Registration Statement or Amendment to the Registration Statement
pursuant to Powers of Attorney authorizing the person signing this Registration
Statement or Amendment to the Registration Statement to do so on behalf of such
members.

A majority of the members of the Board of Directors of Dean Witter Reynolds
Inc. has signed this Registration Statement or Amendment to the Registration
Statement pursuant to Powers of Attorney authorizing the person signing this
Registration Statement or Amendment to the Registration Statement to do so on
behalf of such members.

A majority of the members of the Executive Committee of the Board of
Directors of PaineWebber Incorporated has signed this Registration Statement or
Amendment to the Registration Statement pursuant to Powers of Attorney
authorizing the person signing this Registration Statement or Amendment to the
Registration Statement to do so on behalf of such members.

<PAGE>
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
DEPOSITOR
<TABLE>
<CAPTION>

<S> <C>

By the following persons, who constitute a majority of Powers of Attorney have been filed under
the Board of Directors of Merrill Lynch, Pierce, Form SE and the following 1933 Act File
Fenner & Smith Incorporated: Numbers: 33-43466 and 33-51607

</TABLE>

HERBERT M. ALLISON, JR.
BARRY S. FREIDBERG
EDWARD L. GOLDBERG
STEPHEN L. HAMMERMAN
JEROME P. KENNEY
DAVID H. KOMANSKY
DANIEL T. NAPOLI
THOMAS H. PATRICK
JOHN L. STEFFENS
DANIEL P. TULLY
ROGER M. VASEY
ARTHUR H. ZEIKEL

DANIEL C. TYLER

By: DANIEL C. TYLER
(As authorized signatory for Merrill Lynch, Pierce,
Fenner & Smith Incorporated and
Attorney-in-fact for the persons listed above)
<PAGE>
SMITH BARNEY INC.
DEPOSITOR
<TABLE>
<CAPTION>

<S> <C>

By the following persons, who constitute a majority of Powers of Attorney have been filed under the
the Board of Directors of Smith Barney Inc.: following 1933 Act File Numbers:
33-56722 and 33-51999

</TABLE>

STEVEN D. BLACK
JAMES BOSHART III
ROBERT A. CASE
JAMES DIMON
ROBERT DRUSKIN
JEFFREY LANE

KEVIN E. KOPCZYNSKI

By: KEVIN E. KOPCZYNSKI
(As authorized signatory for
Smith Barney Inc. and
Attorney-in-fact for the persons listed above)
<PAGE>
PAINEWEBBER INCORPORATED
DEPOSITOR
<TABLE>
<CAPTION>

<S> <C>

By the following persons, who constitute a majority of Powers of Attorney are being filed under
the Executive Committee of the Board of Form SE and the following 1933 Act File
Directors of PaineWebber Incorporated: Number: 33-55073

</TABLE>

JOSEPH J. GRANO, JR.
DONALD B. MARRON

ROBERT E. HOLLEY

By: ROBERT E. HOLLEY
(As authorized signatory for
PaineWebber Incorporated and
Attorney-in-fact for the persons listed above)
<PAGE>
PRUDENTIAL SECURITIES INCORPORATED
DEPOSITOR
<TABLE>
<CAPTION>

<S> <C>

By the following persons, who constitute a majority of Powers of Attorney have been filed under
the Board of Directors of Prudential Securities Form SE and the following 1933 Act File
Incorporated: Number: 33-41631

</TABLE>

ALAN D. HOGAN
GEORGE MURRAY
HARDWICK SIMMONS

RICHARD R. HOFFMANN

By: RICHARD R. HOFFMANN
(As authorized signatory for Prudential Securities
Incorporated and Attorney-in-fact for the persons
listed above)
<PAGE>
DEAN WITTER REYNOLDS INC.
DEPOSITOR
<TABLE>
<CAPTION>

<S> <C>

By the following persons, who constitute a majority of Powers of Attorney are being filed under
the Board of Directors of Dean Witter Reynolds Inc.: Form SE and the following 1933 Act File
Number: 33-17085

</TABLE>

NANCY DONOVAN
CHARLES A. FIUMEFREDDO
JAMES F. HIGGINS
STEPHEN R. MILLER
PHILIP J. PURCELL
THOMAS C. SCHNEIDER
WILLIAM B. SMITH

MICHAEL D. BROWNE

By: MICHAEL D. BROWNE
(As authorized signatory for
Dean Witter Reynolds Inc. and
Attorney-in-fact for the persons listed above)

<PAGE>
EXHIBIT 3.1

DAVIS POLK & WARDWELL
450 LEXINGTON AVENUE
NEW YORK, NEW YORK 10017
(212) 450-4000

AUGUST 28, 1996

Government Securities Income Fund,
GNMA Series-1Z
Defined Asset Funds

Merrill Lynch, Pierce, Fenner & Smith Incorporated
Smith Barney Inc.
PaineWebber Incorporated
Prudential Securities Incorporated
Dean Witter Reynolds Inc.
c/o Merrill Lynch, Pierce, Fenner & Smith Incorporated
Defined Asset Funds
P.O. Box 9051
Princeton, N J 08543-9051

Dear Sirs:

We have acted as special counsel for you, as sponsors (the "Sponsors") of GNMA
Series--1Z of Government Securities Income Fund, Defined Asset Funds (the
"Fund"), in connection with the issuance of units of fractional undivided
interest in the Fund (the "Units") in accordance with the Trust Indenture
relating to the Fund (the "Indenture").

We have examined and are familiar with originals or copies, certified or
otherwise identified to our satisfaction, of such documents and instruments as
we have deemed necessary or advisable for the purpose of this opinion.

Based upon the foregoing, we are of the opinion that (i) the execution and
delivery of the Indenture and the issuance of the Units have been duly
authorized by the Sponsors and (ii) the Units, when duly executed and delivered
by the Sponsors and the Trustee in accordance with the Indenture, will be
legally issued, fully paid and non- assessable.

We hereby consent to the use of this opinion as Exhibit 3.1 to the
Registration Statement relating to the Units filed under the Securities Act of
1933 and to the use of our name in such Registration Statement and in the
related prospectus under the heading "Miscellaneous--Legal Opinion."

Very truly yours,

Davis Polk & Wardwell

<PAGE>

EXHIBIT 4.1

AUGUST 28, 1996

Kenny S&P Evaluation Services
A Division of Kenny Information Systems, Inc.
65 Broadway
New York, N.Y. 10006
Telephone 212/770-4405
Fax 212/797-8681

Frank A. Ciccotto, Jr.
Vice President

Kenny Information Systems, Inc.

<S> <C>

Merrill Lynch, Pierce, Fenner & Smith Incorporated The Chase Manhattan Bank
Defined Asset Funds 1 Chase Manhattan Plaza-3B
P.O. Box 9051 New York, N Y 10081
Princeton, N J 08543-9051

</TABLE>

RE: GOVERNMENT SECURITIES INCOME FUND, GNMA SERIES-1Z, DEFINED ASSET FUNDS

Gentlemen:

We have examined the Registration Statement No. 33-60243 for the above
captioned fund. We hereby acknowledge that Kenny S&P Evaluation Services, a
division of Kenny Information Systems, Inc. is currently acting as the evaluator
for the Trust. We hereby consent to the use in the Registration Statement of the
reference to Kenny S&P Evaluation Services a division of Kenny Information
Systems, Inc. as evaluator.

You are hereby authorized to file a copy of this letter with the Securities
and Exchange Commission.

Sincerely,

By:

Frank A. Ciccotto, Jr.
Vice President

<PAGE>
EXHIBIT 5.1
CONSENT OF INDEPENDENT ACCOUNTANTS

The Sponsors and Trustee of
Government Securities Income Fund,
GNMA Series-1Z
Defined Asset Funds:

We consent to the use in this Registration Statement No. 33-60243 of our opinion
dated August 28, 1996, relating to the Statement of Condition of Government
Securities Income Fund, GNMA Series-1Z, Defined Asset Funds and to the reference
to us under the heading "Miscellaneous--Auditors" in the Prospectus which is a
part of this
Registration Statement.

DELOITTE & TOUCHE LLP
New York, N Y
August 28, 1996

<PAGE>

<ARTICLE>6
<MULTIPLIER>1

<S> <C>

<PERIOD-TYPE> OTHER

<FISCAL-YEAR-END> JUL-31-1996

<PERIOD-END> AUG-28-1996

<INVESTMENTS-AT-COST> 487,914

<INVESTMENTS-AT-VALUE> 487,914

<RECEIVABLES> 1,819

<ASSETS-OTHER> 100,000

<OTHER-ITEMS-ASSETS> 0

<TOTAL-ASSETS> 589,733

<PAYABLE-FOR-SECURITIES> 0

<SENIOR-LONG-TERM-DEBT> 0

<OTHER-ITEMS-LIABILITIES> 101,819

<TOTAL-LIABILITIES> 101,819

<SENIOR-EQUITY> 0

<PAID-IN-CAPITAL-COMMON> 487,914

<SHARES-COMMON-STOCK> 500,000

<SHARES-COMMON-PRIOR> 0

<ACCUMULATED-NII-CURRENT> 0

<OVERDISTRIBUTION-NII> 0

<ACCUMULATED-NET-GAINS> 0

<OVERDISTRIBUTION-GAINS> 0

<ACCUM-APPREC-OR-DEPREC> 0

<NET-ASSETS> 487,914

<DIVIDEND-INCOME> 0

<INTEREST-INCOME> 0

<OTHER-INCOME> 0

<EXPENSES-NET> 0

<NET-INVESTMENT-INCOME> 0

<REALIZED-GAINS-CURRENT> 0

<APPREC-INCREASE-CURRENT> 0

<NET-CHANGE-FROM-OPS> 0

<EQUALIZATION> 0

<DISTRIBUTIONS-OF-INCOME> 0

<DISTRIBUTIONS-OF-GAINS> 0

<DISTRIBUTIONS-OTHER> 0

<NUMBER-OF-SHARES-SOLD> 500,000

<NUMBER-OF-SHARES-REDEEMED> 0

<SHARES-REINVESTED> 0

<NET-CHANGE-IN-ASSETS> 0

<ACCUMULATED-NII-PRIOR> 0

<ACCUMULATED-GAINS-PRIOR> 0

<OVERDISTRIB-NII-PRIOR> 0

<OVERDIST-NET-GAINS-PRIOR> 0

<GROSS-ADVISORY-FEES> 0

<INTEREST-EXPENSE> 0

<GROSS-EXPENSE> 0

<AVERAGE-NET-ASSETS> 0

<PER-SHARE-NAV-BEGIN> 0

<PER-SHARE-NII> 0

<PER-SHARE-GAIN-APPREC> 0

<PER-SHARE-DIVIDEND> 0

<PER-SHARE-DISTRIBUTIONS> 0

<RETURNS-OF-CAPITAL> 0

<PER-SHARE-NAV-END> 0

<EXPENSE-RATIO> 0

<AVG-DEBT-OUTSTANDING> 0

<AVG-DEBT-PER-SHARE> 0

</TABLE>