GOVERNMENT SEC INC FD MON PYMT U S TREAS SER 27 D A F, 487, 1997-08-19

GOVERNMENT SEC INC FD MON PYMT U S TREAS SER 27 D A F
487, 1997-08-19

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AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON AUGUST 19, 1997

REGISTRATION NO. 333-15847

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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

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AMENDMENT NO. 1
TO

FORM S-6

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

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A. EXACT NAME OF TRUST:

GOVERNMENT SECURITIES INCOME FUND
MONTHLY PAYMENT U.S. TREASURY SERIES--27
(LADDERED MATURITIES)
DEFINED ASSET FUNDS
(A UNIT INVESTMENT TRUST)

B. NAMES OF DEPOSITORS:

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

C. COMPLETE ADDRESSES OF DEPOSITORS' PRINCIPAL EXECUTIVE OFFICES:

MERRILL LYNCH, PIERCE, SMITH BARNEY INC. PAINEWEBBER INCORPORATED
FENNER & 388 GREENWICH 1285 AVENUE OF THE
SMITH INCORPORATED STREET--23RD FLOOR AMERICAS
UNIT INVESTMENT TRUST NEW YORK, NY 10013 NEW YORK, NY 10019
DIVISION
P.O. BOX 9051
PRINCETON, NJ 08543-9051
PRUDENTIAL SECURITIES
INCORPORATED
ONE NEW YORK PLAZA
NEW YORK, NY 10292
DEAN WITTER REYNOLDS INC.
TWO WORLD TRADE
CENTER--59TH FLOOR
NEW YORK, NY 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, NJ 08543-9051 NEW YORK, NY 10013 WEEHAWKEN, NJ 07087
COPIES TO:
PIERRE DE SAINT PHALLE, DOUGLAS LOWE, ESQ.
LEE B. SPENCER, JR. ESQ. 130 LIBERTY STREET--29TH
ONE NEW YORK PLAZA 450 LEXINGTON AVENUE FLOOR
NEW YORK, NY 10292 NEW YORK, NY 10017 NEW YORK, NY 10006

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: Not applicable

H. APPROXIMATE DATE OF PROPOSED SALE TO PUBLIC:

As soon as practicable after the effective date of the Registration Statement.

/ x / Check box if it is proposed that this filing will become effective upon
filing on August 19, 1997, pursuant to Rule 487.

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<PAGE>
DEFINED ASSET FUNDSSM
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GOVERNMENT 5.31% ESTIMATED CURRENT RETURN shows the estimated
SECURITIES annual cash to be received from interest-bearing
INCOME FUND bonds in the Portfolio (net of estimated annual
MONTHLY PAYMENT expenses) divided by the Public Offering Price
U.S. TREASURY (including the maximum sales charge).
SERIES--27 5.44% ESTIMATED LONG TERM RETURN is a measure of
(LADDERED MATURITIES) the estimated return over the estimated life of
A UNIT INVESTMENT TRUST the Fund (about three years). This represents an
- ------------------------------average of the yields to maturity (or in certain
/ / MONTHLY INCOME cases, to an earlier call date) of the individual
/ / AAA-RATED BONDS bonds in the Portfolio, adjusted to reflect the
/ / FOREIGN HOLDERS maximum sales charge and estimated expenses. The
TAX EXEMPT average yield for the Portfolio is derived by
5.31% weighting each bond's yield by its market value
ESTIMATED CURRENT RETURN and the time remaining to the call or maturity
5.44% date, depending on how the bond is priced. Unlike
ESTIMATED LONG TERM RETURN Estimated Current Return, Estimated Long Term
AS OF AUGUST 18, 1997 Return takes into account maturities, discounts
and premiums of the underlying bonds.
No return estimate can be predictive of your
actual return because returns will vary with
purchase price (including sales charges), how long
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 an
individual bond 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
SPONSORS: HAS THE COMMISSION OR ANY STATE SECURITIES
Merrill Lynch, COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
Pierce, Fenner & Smith OF THIS DOCUMENT. ANY REPRESENTATION TO THE
Incorporated CONTRARY IS A CRIMINAL OFFENSE.
Smith Barney Inc. Inquiries should be directed to the Trustee at
Prudential Securities 1-800-221-7771.
Incorporated Prospectus dated August 19, 1997.
Dean Witter Reynolds Inc. INVESTORS SHOULD READ THIS PROSPECTUS CAREFULLY
PaineWebber Incorporated AND RETAIN IT FOR FUTURE REFERENCE.

<PAGE>
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Defined Asset FundsSM
Defined Asset Funds is America's oldest and largest family of unit investment
trusts, with over $115 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:

o Municipal bond portfolios
o Corporate bond portfolios
o Government bond portfolios
o Equity portfolios
o International bond and equity 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 U.S. Treasury Series
- ----------------------------------------------------------------

Our defined portfolio of U.S. Treasury securities offers you a simple and
convenient way to participate in the U.S. Treasury market and obtain monthly
income while earning an attractive return.

INVESTMENT OBJECTIVES

To obtain safety of capital and investment flexibility as well as current
monthly income distributions through investment in a fixed, laddered portfolio
of interest-bearing U.S. Treasury obligations with maturities of approximately
one to five years. By utilizing an investment strategy called laddering, the
Fund seeks to protect against changes in 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.

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Defining Your Portfolio
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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' interest.

PORTFOLIO COMPOSITION

The Portfolio consists of 5 different issues of short intermediate term U.S.
Treasury obligations without conversion or equity features with an aggregate
face amount of $500,000.

CALL PROTECTION

100% of the aggregate face amount of the Portfolio is not subject to redemption
prior to maturity but is payable in full at the stated maturity amounts.

TAX INFORMATION

Interest on the securities is subject to U.S. Federal income taxes for U.S.
investors but exempt from state and local personal income taxes in all states.
For many foreign investors, income from the Fund will be exempt from Federal
income taxes.

In the opinion of special counsel to the Sponsors, each investor will be
considered to have received the interest on his pro rata portion of each
Security when interest on the Security is received by the Fund.
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Defining Your Investment
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PUBLIC OFFERING PRICE $1,003.87
PER 1,000 UNITS

The Public Offering Price as of August 18, 1997, 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 ($495,678.00), plus a maximum sales charge of
1.266% of the value of the underlying Securities, plus cash ($5,000.00), divided
by the number of units outstanding (505,000) 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.

A-2
<PAGE>
UNIT PAR VALUE

The par value of your units--the amount of money you will receive at termination
of the Fund, assuming all the bonds are paid at maturity or are redeemed by the
issuer at par or sold by the Fund at par to meet redemptions--is $1,000 per
1,000 units.

LOW MINIMUM INVESTMENT

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

PRINCIPAL DISTRIBUTIONS

Principal from sales, redemptions and maturities of Securities in the Fund will
be distributed to investors periodically when the amount to be distributed is
more than $5.00 per 1,000 units.

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 $631.13 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 Costs
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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 Initial Offer- of Secondary
ing Market
Period Public Public Offering
Offering Price Price
----------------- -----------------
Maximum Sales Charges 1.25% 1.50%

ESTIMATED ANNUAL FUND OPERATING EXPENSES

As a %
of Average Per 1,000
Net Assets* Units
----------------- --------------
Trustee's Fee .060% $ 0.60
Portfolio Supervision,
Bookkeeping and Administrative
Fees .045% $ 0.45
Organizational Expenses .020% $ 0.20
Evaluator's Fee .003% $ 0.03
Other Operating Expenses .015% $ 0.15
----------------- --------------
TOTAL .143% $ 1.43

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

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
$14 $17 $21

The example assumes reinvestment of all distributions into additional units of
the 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.

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.

REDEEMING OR SELLING YOUR INVESTMENT

You may redeem or sell your units at any time. Your price is based on the Fund's
then current net asset value (generally based on the lower bid side evaluation,
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 the August 18, 1997 was $990.83 ($13.04 less than
the Public Offering Price). There is no fee for redeeming or selling your units.

A-3
<PAGE>
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Defining Your Risks
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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.
Because of deposits of additional Securities and the maturity, possible 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 is 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 Income
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MONTHLY INTEREST INCOME

The Fund pays monthly income, even though the Securities generally pay interest
semi-annually.

WHAT YOU MAY EXPECT
(PAYABLE ON THE 25TH DAY OF THE MONTH TO HOLDERS OF RECORD ON THE 10TH DAY OF
THE MONTH):

First Distribution per 1,000 units
(September 25, 1997): $ 3.10
Regular Monthly Income per 1,000 units
(Beginning on October 25, 1997): $ 4.44
Annual Income per 1,000 units: $ 53.28

These figures are estimates determined as of the business day prior to the
Initial Date of Deposit and actual payments may vary.

Estimated cash flows are available upon request from the Sponsors at no charge.

A-4
<PAGE>
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Defined Portfolio
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Government Securities Income Fund
Monthly Payment U.S. Treasury Series--27
(Laddered Maturities) August 19, 1997

S&P
PORTFOLIO NO. AND TITLE RATING FACE AMOUNT COUPON MATURITY COST TO FUND
- ----------------------------------- ----------- -------------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C>

1. United States Treasury Notes AAA $ 100,000 5.000% 2/15/99 $ 99,116.00
2. United States Treasury Notes AAA 100,000 5.500 4/15/00 99,230.00
3. United States Treasury Notes AAA 100,000 5.250 1/31/01 98,008.00
4. United States Treasury Notes AAA 100,000 5.875 11/30/01 99,456.00
5. United States Treasury Notes AAA 100,000 6.000 7/31/02 99,868.00
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$ 500,000 $ 495,678.00
-------------- ----------------
-------------- ----------------

</TABLE>

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(1) 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.

A-5
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS

The Sponsors, Trustee and Holders of Government Securities Income Fund, Monthly
Payment U.S. Treasury Series--27 (Laddered Maturities), 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 19, 1997. 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 cash and 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 19, 1997
in conformity with generally accepted accounting principles.

DELOITTE & TOUCHE LLP
NEW YORK, N.Y.
AUGUST 19, 1997

STATEMENT OF CONDITION AS OF AUGUST 19, 1997

TRUST PROPERTY

Investments--Securities and Contracts to purchase
Securities(1) $ 495,678.00
Cash 5,000.00
Accrued interest to Initial Date of Deposit on underlying
Securities 3,812.78
Organizational costs(2) 50,000.00
--------------------
Total $ 554,490.78
--------------------
--------------------
LIABILITIES AND INTEREST OF HOLDERS
Liabilities: Advance by Trustee for accrued interest(3) $ 3,812.78
Accrued Liability(2) 50,000.00
--------------------
Subtotal 53,812.78
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Interest of Holders of 505,000 Units of fractional
undivided interest outstanding:
Cost to investors(4)(5) 506,955.15
Gross underwriting commissions(5) (6,277.15)
--------------------
Subtotal $ 500,678.00
--------------------
Total $ 554,490.78
--------------------
--------------------

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(1) Aggregate cost to the Fund of the securities 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 DBS Bank, New York Agency, in the
amount of $498,859.66 and deposited with the Trustee. The amount of the letter
of credit includes $495,046.88 for the purchase of $500,000 face amount of the
securities, plus $3,812.78 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 a projected Fund size of $50,000,000. To the extent the Fund
is larger or smaller, the amount paid may vary.
(3) Representing a special distribution to the Sponsors by the Trustee
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 bonds as of the
evaluation time on the business day prior to the Initial Date of Deposit.
(5) Assumes the maximum sales charge of 1.25% of the Public Offering
Price (1.266% of the value of the securities).

A-6
<PAGE>
EFFECT OF STATE PERSONAL INCOME TAX EXEMPTION

The following chart shows that the return on a security that is subject to state
personal income taxes would have to be in order to equal 5.31% Estimated Current
Return and 5.44% Estimated Long Term Return on a Monthly Payment U.S. Treasury
Series. This Trust is free from state personal income taxes in all states; the
comparable security would be subject to deduction of state personal income taxes
at the maximum state rate. Of course, if you are not in the maximum state
personal income tax bracket, the fully taxable equivalent return would be less.

FULLY TAXABLE FULLY TAXABLE
RETURN RETURN
EQUIVALENT TO 5.31% EQUIVALENT TO 5.44%
ESTIMATED CURRENT ESTIMATED LONG
RETURN ON TERM RETURN ON
MAXIMUM STATE MONTHLY PAYMENT MONTHLY PAYMENT
PERSONAL INCOME U.S. TREASURY U.S. TREASURY
STATE TAX RATE(1) SERIES SERIES
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Alabama 5.000%(2) 5.59% 5.73%
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Alaska 0.000 5.31 5.44
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Arizona 5.600(2) 5.63 5.76
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Arkansas 7.000 5.71 5.85
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California 9.300 5.85 6.00
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Colorado 5.000 5.59 5.73
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Connecticut 4.500 5.56 5.70
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Delaware 6.900 5.70 5.84
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Florida 0.000 5.31 5.44
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Georgia 6.000 5.65 5.79
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Hawaii 10.000 5.90 6.04
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Idaho 8.200 5.78 5.93
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Illinois 3.000 5.47 5.61
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Indiana 3.400 5.50 5.63
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Iowa 9.980(2) 5.90 6.04
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Kansas 7.750 5.76 5.90
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Kentucky 6.000 5.65 5.79
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Louisiana 6.000 5.65 5.79
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Maine 8.500 5.80 5.95
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Maryland 5.000 5.59 5.73
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Massachusetts 12.000 6.03 6.18
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Michigan 4.400 5.55 5.69
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Minnesota 8.500 5.80 5.95
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Mississippi 5.000 5.59 5.73
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Missouri 6.000 5.65 5.79
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Montana 11.000 5.97 6.11
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Nebraska 6.990% 5.71% 5.85%
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Nevada 0.000 5.31 5.44
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New Hampshire 5.000 5.59 5.73
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New Jersey 6.370 5.67 5.81
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New Mexico 8.500 5.80 5.95
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New York 6.850 5.70 5.84
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North Carolina 7.750 5.76 5.90
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North Dakota 12.000(7) 6.03 6.18
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Ohio 7.500 5.74 5.88
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Oklahoma 10.000(2)(4) 5.90 6.04
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Oregon 9.000(2) 5.84 5.98
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Pennsylvania 2.800 5.46 5.60
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Puerto Rico 39.600(8) 8.79 9.01
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Rhode Island 10.890(5) 5.96 6.10
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South Carolina 7.000 5.71 5.85
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South Dakota 0.000 5.31 5.44
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Tennessee 6.000 5.65 5.79
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Texas 0.000 5.31 5.44
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Utah 7.000(3) 5.71 5.85
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Vermont 9.900(5)(6) 5.89 6.04
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Virginia 5.750 5.63 5.77
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Washington 0.000 5.31 5.44
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West Virginia 6.500 5.68 5.82
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Wisconsin 6.930 5.71 5.85
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Wyoming 0.000 5.31 5.44
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Dist. of
Columbia 9.500 5.87 6.01
- ---------------------------------------------------------------------------

This Chart incorporates current applicable State income tax rates and assumes
that all income would otherwise be taxed at the investor's highest tax rate. If
you live in a locality which imposes local personal income taxes, the fully
taxable equivalent return may be greater than as shown on this chart. Yield
figures are for example only.

(1) Based upon net amount subject to State income tax after deductions and
exemptions. This Chart does not reflect other possible tax factors, such as
the alternative minimum tax, personal exemptions, the phase out of
exemptions, itemized deductions and the possible partial disallowance of
deductions. Consequently, Holders are urged to consult their own tax
advisors in this regard.

(2) This state allows in any taxable year, the deduction from gross income of
payments of federal tax liability in that year.

(3) This state allows in any taxable year, the deduction from gross income of
50% of amounts paid on federal tax liability in that year.

(4) The maximum applicable rate may be 7% if the taxpayer chooses not to deduct
payments of federal tax liability.

(5) This rate is calculated as a percentage of the highest federal personal
income tax rate of 39.6%.

(6) The rate shown includes the maximum surtax imposed by this state of 6% of
federal personal income tax liability.

(7) The maximum applicable rate may be 14% of adjusted federal personal income
tax liability if the state tax calculated on that basis is less than the
state tax calculated on the basis of the rate shown above.

(8) An alternate basic tax may be assessed if greater than the tax calculated on
the basis of the rate shown above.

A-7
<PAGE>

DEFINED ASSET FUNDSSM
PROSPECTUS--PART B
GOVERNMENT SECURITIES INCOME FUND

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
---------
Fund Description...................................... 1
Risk Factors.......................................... 2
How to Buy Units...................................... 3
How to Redeem or Sell Units........................... 4
Income and Distributions.............................. 5
Fund Expenses......................................... 5
Taxes................................................. 6
PAGE
---------
Records and Reports................................... 8
Trust Indenture....................................... 8
Miscellaneous......................................... 9
Supplemental Information.............................. 11
Description of Ratings 11
Appendix A--Sales Charge Schedules.................... a-1

FUND DESCRIPTION

PORTFOLIO SELECTION

Professional buyers and research analysts 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 (all Securities in the Portfolio were issued after July 18, 1984),
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 dedicated research analysts 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 among the face amounts of the
Securities. During the 90-day period 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.
Deposits of additional Securities subsequent to the 90-day period must generally
replicate exactly the proportionate relationship among the face amounts of the
Securities at the end of the initial 90-day period.

Yields on U.S. Government securities depend on many factors including
general money market conditions, general conditions of the 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. Because the Portfolio is not
actively managed and principal is returned as the Securities are disposed of,
this principal should be relatively unaffected by changes in interest rates.

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,

1
<PAGE>
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 by
the U.S. Treasury and has a fixed maturity date substantially similar to the
failed Security. A replacement security must be deposited within 110 days after
the 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.

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.
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. Market premium or discount attributable to interest rate changes does
not indicate market confidence or lack of confidence in the issue.

The U.S. Treasury obligations included in the Portfolio, though backed by
the full faith and credit of the United States, 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.

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

The size and composition of the Fund will 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.

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

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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 of the Fund and any other Monthly Payment U.S. Treasury Series of
Government Securities Income Fund purchased on any one day by a single purchaser
(see Initial Offering sales charge schedule in Appendix A). In the secondary
market (after the initial offering 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 and principal cash, if any, are 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 Treasury obligations of the type deposited in the
Portfolio are expected to be approximately .10% 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.

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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.

As long as the Sponsors are maintaining a secondary market for Units (as
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 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.

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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 AND DISTRIBUTIONS

INCOME

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. Interest on the Securities is generally
received by the Fund on a semi-annual or annual basis. Because interest on the
Securities is not received at a constant rate throughout the year, any Monthly
Income Distribution may be more or less than the interest actually received. To
eliminate fluctuations in the Monthly Income Distribution, a portion of the
Public Offering Price may consist of cash in an amount necessary for the Trustee
to provide approximately equal interest distributions. Upon the sale or
redemption of Units, investors will receive their proportionate share of this
cash. In addition, if a security is sold, redeemed or otherwise disposed of, the
Fund will periodically distribute to investors the portion of this cash that is
attributable to the Security, as well their share of principal received from the
disposition of the 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
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
redemptions of Securities 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.

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
currently estimated at $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 Defined Asset Funds, currently
estimated at $0.10 per 1,000 Units. The Trustee's, Sponsors' and Evaluator's
fees may be adjusted for inflation without investors' approval.

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<PAGE>

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

The following summary describes some of the important income tax
consequences of holding Units, assuming that the investor is not a dealer,
financial institution or insurance company or other investor with special
circumstances. Investors should consult their tax advisers about an investment
in the Fund.

The Sponsors believe that individual investors will not be subject to any
state or local personal income taxes on the interest received by the Fund and
distributed to them. However, investors (including individuals) may be subject
to state and local taxes on any capital gains (or 'market discount' treated as
ordinary income) and to other state and local taxes (including corporate income
or franchise taxes, personal property or intangibles taxes, and estate or
inheritance taxes) on their Units or the income derived therefrom. In addition,
individual investors (and any other investors that are not subject to state and
local taxes on the interest income derived from the Fund) will probably not be
entitled to a deduction for state and local tax purposes for their share of the
fees and expenses paid by the Fund, for any amortized bond premium or for any
interest on money borrowed to purchase their Units. Investors should consult
their tax advisers regarding the state and local taxes that may result from an
investment in the Fund.

After the end of each calendar year, the Trustee will furnish to each
investor an annual statement containing information relating to the interest
received and 'original issue discount' accrued by the Fund on the Securities,
the cash proceeds received by the Fund from the disposition of any Security, and
the fees and expenses paid by the Fund. The Trustee will also furnish annual
information returns to each investor and to the Internal Revenue Service.

In the opinion of Davis Polk & Wardwell, special counsel for the Sponsors,
under existing law:

GENERAL TREATMENT OF THE FUND

The fund will not be taxed as a corporation for federal income tax purposes
or for New York State or City purposes, and each investor will be considered to
own directly a share of each Security in the Fund. Each investor will be
considered to have received the interest (and accrued the original issue
discount, if any) on his pro rata portion of each Security when interest is
received (or original issue discount is accrued) by the Fund regardless of
whether the interest is automatically reinvested in the Fund or used to pay Fund
expenses.

INCOME OR LOSS UPON DISPOSITION

Upon a disposition of all or part of an investor's pro rata portion of a
Security (by sale, exchange or redemption of the Security or his Units), an
investor will generally recognize capital gain or loss. However, gain from the
disposition will generally be ordinary income to the extent of any accrued
market discount. An investor will generally have market discount to the extent
that his basis in a Security when he purchases a Unit is less than its stated
redemption price at maturity (or, in the case of a Security issued with original
issue discount, the issue price increased by original issue discount that has
accrued to previous holders). Investors should consult their tax advisers in
this regard.

The excess of a non-corporate investor's net long-term capital gains over
his net short-term capital losses may be subject to tax at a lower rate than
ordinary income. A capital gain or loss is long-term if the investment is held
for more than one year and short-term if held for one year or less. Because the
deduction of capital losses is subject to limitations, an investor may not be
able to deduct all of his capital losses. Under the recently enacted Taxpayer
Relief Act of 1997, an investor who is an individual and has held his pro rata
portions of Securities for more than eighteen months may be entitled to a 20%
maximum federal tax rate for gains from the sale of these Securities or
corresponding Units. (See Defining Your Investment--Termination Date). Investors
should consult their tax advisers in this regard.

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INVESTOR'S BASIS IN THE SECURITIES

An investor's aggregate basis in the Securities will be equal to the cost
of his Units, including any sales charges and the organizational expenses borne
by the investor but excluding any amount paid for accrued interest, and adjusted
to reflect any accruals of 'original issue discount', 'acquisition premium' and
'bond premium'. Investors should consult their tax advisers in this regard.

ORIGINAL ISSUE DISCOUNT, ACQUISITION PREMIUM AND BOND PREMIUM

Original issue discount accrues in accordance with a constant yield method
based on a compounding of interest and is generally equal to the excess of a
Security's stated redemption price at maturity over its original issue price.
Original issue discount inclusions are reduced by accruals of acquisition
premium. An investor will have acquisition premium to the extent his basis in a
Security when he purchases a Unit is less than the stated redemption price at
maturity but more than the issue price increased by any original issue discount
that has accrued to previous holders.

Generally, bond premium accruals on a bond will be based upon the excess of
an investor's basis in the Security at the time of purchasing a Unit over its
stated redemption price at maturity. If an investor has elected to amortize bond
premium, which is an election that applies to all debt obligations of an
investor and that can be revoked only with consent of the Internal Revenue
Service, the amount amortized offsets the investor's interest from the Security
and will reduce the investor's basis. Investors should consult their tax
advisers in this regard.

EXPENSES

An individual investor who itemizes deductions may deduct his pro rata
share of current ongoing Fund expenses only to the extent that such amount,
together with the investor's other miscellaneous deductions, exceeds 2% of his
adjusted gross income. In addition, the Internal Revenue Code further restricts
the ability of an individual investor with an adjusted gross income in excess of
a specified amount (for 1997, $121,200 or $60,600 for a married person filing a
separate return) to claim itemized deductions (including his pro rata share of
Fund expenses).

FOREIGN INVESTORS

Notwithstanding the foregoing, foreign investors (including non-resident
alien individuals and foreign corporations) not engaged in U.S. trade or
business will generally not be subject to U.S. federal income tax, including
withholding tax, on the interest or gain on a Security if (i) the investor meets
certain requirements, including the certification of foreign status and other
matters, and (ii) the Security was issued after July 18, 1984. Unless otherwise
stated in Part A of the Prospectus, the Sponsors believe that all the Securities
in the Portfolio were issued after July 18, 1984. Under certain circumstances,
withholding agents will file foreign person information returns with the
Internal Revenue Service. Foreign investors should consult their own tax
advisers about the possible application of federal, state and local taxes in the
U.S. and their foreign countries of residence or organization.

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.

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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 ($4,000 in a spousal account).

Individual Retirement Account--IRA. 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 ($4,000 in a spousal account) or 100% of
earned income; such investment must be made in cash. However, the deductible
amount of a contribution by an individual covered by an employer retirement plan
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 a married individual
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 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 59 1/2, except
in the case of the 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.

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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 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 Morgan Stanley,
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.

9
<PAGE>
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 their 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 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.

10
<PAGE>
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.

DESCRIPTION OF RATING (AS DESCRIBED BY STANDARD & POOR'S RATINGS GROUP,

A DIVISION OF MCGRAW HILL, INC.)

Debt rated AAA has the highest rating assigned by Standard & Poor's to a
security. Capacity to pay interest and repay principal is extremely strong.

11
<PAGE>
APPENDIX A

ONE TO FIVE YEAR MATURITIES
INITIAL OFFERING SALES CHARGE SCHEDULE

<TABLE>
<CAPTION>
SALES CHARGE
(GROSS UNDERWRITING PROFIT)
-------------------------------- PRIMARY MARKET
AS PERCENT OF AS PERCENT OF DEALER CONCESSION AS CONCESSION TO
OFFER SIDE PUBLIC NET AMOUNT PERCENT OF PUBLIC INTRODUCING
AMOUNT PURCHASED OFFERING PRICE INVESTED OFFERING PRICE DEALERS
- ----------------------------------- ----------------- ------------- ----------------------- ------------------

Less than $1,000,000............... 1.25% 1.266% 0.813% $ 9.00
$1,000,000 or more................. 1.00 1.010 0.650 7.20

<CAPTION>
SECONDARY MARKET SALES CHARGE SCHEDULE

SALES CHARGE
(GROSS UNDERWRITING PROFIT)
--------------------------------
AS PERCENT OF AS PERCENT OF DEALER CONCESSION AS
BID SIDE PUBLIC NET AMOUNT PERCENT OF PUBLIC
AMOUNT PURCHASED OFFERING PRICE INVESTED OFFERING PRICE
- ----------------------------------- ----------------- ------------- -----------------------
<S> <C> <C> <C> <C>
Less than $1,000,000............... 1.50% 1.523% 0.975%
$1,000,000 or more................. 1.25 1.266 0.813

<CAPTION>
SIX TO TEN YEAR MATURITIES
INITIAL OFFERING SALES CHARGE SCHEDULE

SALES CHARGE
(GROSS UNDERWRITING PROFIT)
-------------------------------- PRIMARY MARKET
AS PERCENT OF AS PERCENT OF DEALER CONCESSION AS CONCESSION TO
OFFER SIDE PUBLIC NET AMOUNT PERCENT OF PUBLIC INTRODUCING
AMOUNT PURCHASED OFFERING PRICE INVESTED OFFERING PRICE DEALERS
- ----------------------------------- ----------------- ------------- ----------------------- ------------------
<S> <C> <C> <C> <C>
Less than $500,000................. 2.00% 2.041% 1.300% $ 14.40
$500,000 - $999,999................ 1.50 1.523 0.975 10.80
$1,000,000 or more................. 1.00 1.010 0.650 7.20

<CAPTION>
SECONDARY MARKET SALES CHARGE SCHEDULE

SALES CHARGE
(GROSS UNDERWRITING PROFIT)
--------------------------------
AS PERCENT OF AS PERCENT OF DEALER CONCESSION AS
BID SIDE PUBLIC NET AMOUNT PERCENT OF PUBLIC
AMOUNT PURCHASED OFFERING PRICE INVESTED OFFERING PRICE
- ----------------------------------- ----------------- ------------- -----------------------
<S> <C> <C> <C> <C>
Less than $500,000................. 2.25% 2.302% 1.463%
$500,000 - $999,999................ 1.75 1.781 1.138
$1,000,000 or more................. 1.25 1.266 0.813
</TABLE>

a-1
<PAGE>
Defined
Asset FundsSM

SPONSORS/UNDERWRITERS: GOVERNMENT SECURITIES
Merrill Lynch, INCOME FUND
Pierce, Fenner & Smith Incorporated Monthly Payment
Defined Asset Funds U.S. Treasury Series--27
P.O. Box 9051 (Laddered Maturities)
Princeton, NJ 08543-9051 A Unit Investment Trust
(609) 282-8500 This Prospectus does not contain all of
Smith Barney Inc. the information with respect to the
Unit Trust Department investment company set forth in its
388 Greenwich Street--23rd Floor registration statement and exhibits
New York, NY 10013 relating thereto which have been filed
(212) 816-4000 with the Securities and Exchange
PaineWebber Incorporated Commission, Washington, D.C. under the
1200 Harbor Boulevard Securities Act of 1933 and the
Weehawken, NJ 07087 Investment Company Act of 1940, and to
(201) 902-3000 which reference is hereby made.
Prudential Securities Incorporated Copies of filed material can be obtained
One New York Plaza from the Public Reference Section of the
New York, NY 10292 Commission, 450 Fifth Street, N.W.,
(212) 778-6164 Washington, D.C. 20549 at prescribed
Dean Witter Reynolds Inc. rates. The Commission also maintains a
Two World Trade Center--59th Floor Web site that contains information
New York, NY 10048 statements and other information
(212) 392-2222 regarding registrants such as Defined
EVALUATOR: Asset Funds that file electronically
Kenny S&P Evaluation Services, with the Commission at
a division of J. J. Kenny Co., Inc. http://www.sec.gov.
65 Broadway ------------------------------
New York, NY 10006 No person is authorized to give any
TRUSTEE: information or to make any
The Bank of New York representations with respect to this
Unit Investment Trust Department investment company not contained in this
P.O. Box 974 Prospectus; and any information or
Wall Street Division representation not contained herein must
New York, NY 10268-0974 not be relied upon as having been
1-800-221-7771 authorized.
------------------------------
When Units of this Fund are no longer
available, this Prospectus may be used
as a preliminary prospectus for a future
series, and investors should note the
following:
Information contained herein is subject
to amendment. A registration statement
relating to securities of a future
series has been filed with the
Securities and Exchange Commission.
These securities may not be sold nor may
offers to buy be accepted prior to the
time the registration statement becomes
effective.
This Prospectus does not constitute an
offer to sell or a solicitation of an
offer to buy securities in any state in
which such offer, solicitation or sale
would be unlawful prior to registration
or qualification under the securities
laws of any such state.
11316--8/97

a-2
<PAGE>

PART IIADDITIONAL 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
filings indicated and made a part of this Registration Statement:

Merrill Lynch, Pierce, Fenner & Smith Incorporated 8-7221
Smith Barney Inc. ........................................ 8-8177
PaineWebber Incorporated.................................. 8-16267
Prudential Securities Incorporated........................ 8-27154
Dean Witter Reynolds Inc. ................................ 8-14172

------------------------------------

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

Merrill Lynch, Pierce, Fenner & Smith Incorporated 13-5674085
Smith Barney Inc. ........................................ 13-1912900
PaineWebber Incorporated.................................. 13-2638166
Prudential Securities Incorporated........................ 13-6134767
Dean Witter Reynolds Inc. ................................ 94-1671384
The Bank of New York, Trustee............................. 13-4941102

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
- --------------------------------------------------------------------------------
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
Series-1.................................................... 33-48915
Defined Asset Funds Municipal Insured Series................ 33-54565
Equity Income Fund, Select Ten Portfolio--1995 Spring
Series...................................................... 33-55807

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 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:

1.1 --Form of Reference Trust Indenture (incorporated by reference to
Exhibit 1.1 to the Registration Statement of Government Securities
Income Fund, Monthly Payment U.S. Treasury Series--22, 1933 Act file
No. 33-57173.
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 headings
'Taxes' and '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.

R-1
<PAGE>

GOVERNMENT SECURITIES INCOME FUND
MONTHLY PAYMENT U.S. TREASURY SERIES--27
DEFINED ASSET FUNDS
(LADDERED MATURITIES)

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 19TH DAY OF
AUGUST, 1997.

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 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 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.

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 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.

R-2
<PAGE>
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
DEPOSITOR

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

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
(As authorized signatory for Merrill Lynch, Pierce,
Fenner & Smith Incorporated and
Attorney-in-fact for the persons listed above)

R-3
<PAGE>
SMITH BARNEY INC.
DEPOSITOR

By the following persons, who constitute a majority of Powers of Attorney
the Board of Directors of Smith Barney Inc.: have been filed
under the 1933 Act
File Numbers:
33-49753, 33-55073
and 333-10441

STEVEN D. BLACK
JAMES BOSHART III
ROBERT A. CASE
JAMES DIMON
ROBERT DRUSKIN
ROBERT H. LESSIN
WILLIAM J. MILLS, II
MICHAEL B. PANITCH
PAUL UNDERWOOD

By GINA LEMON
(As authorized signatory for
Smith Barney Inc. and
Attorney-in-fact for the persons listed above)

R-4
<PAGE>
PAINEWEBBER INCORPORATED
DEPOSITOR

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

JOSEPH J. GRANO, JR.
DONALD B. MARRON
By
ROBERT E. HOLLEY
(As authorized signatory for PaineWebber Incorporated
and Attorney-in-fact for the persons listed above)

R-5
<PAGE>
PRUDENTIAL SECURITIES INCORPORATED
DEPOSITOR

By the following persons, who constitute a majority of Powers of Attorney
the Board of Directors of Prudential Securities have been filed
Incorporated: under Form SE and
the following 1933
Act File Numbers:
33-41631 and
333-15919

ROBERT C. GOLDEN
ALAN D. HOGAN
A. LAURENCE NORTON, JR.
LELAND B. PATON
VINCENT T. PICA II
MARTIN PFINSGRAFF
HARDWICK SIMMONS
LEE B. SPENCER, JR.
BRIAN M. STORMS

By RICHARD R. HOFFMANN
(As authorized signatory for Prudential Securities
Incorporated and Attorney-in-fact for the persons
listed above)

R-6
<PAGE>
DEAN WITTER REYNOLDS INC.
DEPOSITOR

By the following persons, who constitute Powers of Attorney have been filed
a majority of under Form SE and the following 1933
the Board of Directors of Dean Witter Act File Numbers: 33-17085 and
Reynolds Inc.: 333-13039

RICHARD M. DeMARTINI
ROBERT J. DWYER
CHRISTINE A. EDWARDS
CHARLES A. FIUMEFREDDO
JAMES F. HIGGINS
MITCHELL M. MERIN
STEPHEN R. MILLER
RICHARD F. POWERS III
PHILIP J. PURCELL
THOMAS C. SCHNEIDER
WILLIAM B. SMITH
By
MICHAEL D. BROWNE
(As authorized signatory for
Dean Witter Reynolds Inc.
and Attorney-in-fact for the persons listed above)

R-7

EXHIBIT 3.1
DAVIS POLK & WARDWELL
450 LEXINGTON AVENUE
NEW YORK, NEW YORK 10017
(212) 450-4000
August 19, 1997

GOVERNMENT SECURITIES INCOME FUND,
MONTHLY PAYMENT U.S. TREASURY SERIES--27
(LADDERED MATURITIES)
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, NJ 08543-9051

Dear Sirs:

We have acted as special counsel for you, as sponsors (the 'Sponsors') of
Monthly Payment U.S. Treasury Series--27 (Laddered Maturities) 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 issuance of the Units have been duly authorized by the Sponsor
and (ii) the Units, when duly issued 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 of 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 headings 'Taxes' and 'Miscellaneous--Legal
Opinion.'

Very truly yours,

DAVIS POLK & WARDWELL

EXHIBIT 4.1

KENNY S&P EVALUATION SERVICES
A Division of J.J. Kenny Co., Inc.
65 Broadway
New York, New York 10006-2511
Telephone 212/770-4422
Fax 212/797-8681
Frank A. Ciccotto, Jr.
Vice President

AUGUST 19, 1997

MERRILL LYNCH PIERCE FENNER & SMITH INCORPORATED
DEFINED ASSET FUNDS
P.O. BOX 9051
PRINCETON, NJ 08543-9051

THE BANK OF NEW YORK
UNIT INVESTMENT TRUST DIVISION
P.O. BOX 974 - WALL STREET STATION
NEW YORK, NY 10268-0974

RE: GOVERNMENT SECURITIES INCOME FUND, MONTHLY PAYMENT U.S. TREASURY SERIES--27
(LADDERED MATURITIES), DEFINED ASSET FUNDS

Gentlemen:

We have examined the Registration Statement File No. 333-15847 for the
above captioned trust. We hereby acknowledge that Kenny S&P Evaluation Services,
a division of J. J. Kenny Co., 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 J. J. Kenny Co., Inc.,
as evaluator.

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

Sincerely,

FRANK A. CICCOTTO, JR.
Vice President

EXHIBIT 5.1
CONSENT OF INDEPENDENT ACCOUNTANTS
The Sponsors and Trustee of Government Securities Income Fund,
Monthly Payment U.S. Treasury Series--27 (Laddered Maturities), Defined Asset
Funds:

We consent to the use in this Registration Statement No. 333-15847 of our report
dated August 19, 1997, relating to the Statement of Condition of Government
Securities Income Fund, Monthly Payment U.S.. Treasury Series--27 (Laddered
Maturities), 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 19, 1997

<ARTICLE> 6

<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> AUG-19-1997
<INVESTMENTS-AT-COST> 495,678
<INVESTMENTS-AT-VALUE> 495,678
<RECEIVABLES> 3,813
<ASSETS-OTHER> 50,000
<OTHER-ITEMS-ASSETS> 5,000
<TOTAL-ASSETS> 554,491
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 53,813
<TOTAL-LIABILITIES> 53,813
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 500,678
<SHARES-COMMON-STOCK> 505,000
<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> 500,678
<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> 505,000
<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>