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DEFINED ASSET FUNDSSM
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GOVERNMENT SECURITIES INCOME FUND
U.S. GOVERNMENT ZERO COUPON BOND
SERIES 3 AND 8
UNIT INVESTMENT TRUSTS
O PORTFOLIOS OF STRIPPED U.S. TREASURY
SECURITIES
O INVESTMENT ALTERNATIVES FOR EMPLOYEE BENEFIT
PLANS ESTABLISHED BY MERRILL LYNCH & CO., INC.
AND AFFILIATES
-------------------------------------------------
The Securities and Exchange Commission has not
approved or disapproved these Securities or
SPONSOR: passed upon the adequacy of this prospectus. Any
Merrill Lynch, representation to the contrary is a criminal
Pierce, Fenner & Smith offense.
Incorporated Prospectus dated July 20, 1999.
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Defined Asset FundsSM
Defined Asset FundsSM is America's oldest and largest family of unit investment
trusts, with over $160 billion sponsored over the last 28 years. Defined Asset
Funds has been a leader in unit investment trust research and product
innovation. Our family of Funds helps investors work toward their financial
goals with a full range of quality investments, including municipal, corporate
and government bond portfolios, as well as domestic and international equity
portfolios.
Defined Asset Funds offer a number of advantages:
o A disciplined strategy of buying and holding with a long-term view is the
cornerstone of Defined Asset Funds.
o Fixed portfolio: Defined Funds follow a buy and hold investment strategy;
funds are not managed and portfolio changes are limited.
o Defined Portfolios: We choose the stocks and bonds in advance, so you know
what you're investing in.
o Professional research: Our dedicated research team seeks out stocks or bonds
appropriate for a particular fund's objectives.
o Ongoing supervision: We monitor each portfolio on an ongoing basis.
No matter what your investment goals, tolerance for risk or time horizon,
there's probably a Defined Asset Fund that suits your investment style. Your
financial professional can help you select a Defined Asset Fund that works best
for your investment portfolio.
THE FINANCIAL INFORMATION IN THIS PROSPECTUS IS AS OF THE EVALUATION DATE, MARCH
31, 1999.
CONTENTS
PAGE
-----------
Risk/Return Summary..................................... 3
What You Can Expect From Your Investment................ 6
Distributions at Maturity............................ 6
Return Figures....................................... 6
Records and Reports.................................. 6
The Risks You Face...................................... 7
Interest Rate Risk................................... 7
Litigation Risk...................................... 7
Selling Units........................................... 7
Selling Units to the Trustee......................... 7
How The Trusts Work..................................... 8
Pricing.............................................. 8
Evaluations.......................................... 8
Income............................................... 9
Expenses............................................. 9
Portfolio Changes.................................... 9
Termination.......................................... 10
No Certificates...................................... 10
Trust Indenture...................................... 10
Legal Opinion........................................ 11
Auditors............................................. 11
Sponsor.............................................. 11
Trustee.............................................. 11
Sponsor's Profits.................................... 12
Code of Ethics....................................... 12
Year 2000 Issues..................................... 12
Taxes................................................... 12
Supplemental Information................................ 13
Financial Statements.................................... D-1
2
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RISK/RETURN SUMMARY
1. WHAT ARE THE TRUSTS' OBJECTIVES?
Each Series seeks safety of capital and a high yield to
maturity by investing in two fixed portfolios of stripped
U.S. Treasury securities.
Units are offered only to employee benefit plans
established by Merrill Lynch & Co., Inc. and its
affiliates--the Plans--as an investment alternative for
Plan allocations to help participants meet their personal
retirement needs and goals. Each Plan will invest in Units
in accordance with allocation instructions received from
employees pursuant to the Plan. Accordingly, the interests
of an employee in the units are subject to the terms of the
Plan. The rights of a Plan as a holder of units should be
distinguished from the rights of an employee. The term
'you' in this Prospectus refers to the Plans, to the
Sponsor if it holds any units and to any employee who holds
units distributed from a Plan.
For each 10 units held until maturity of a Trust, you will
receive total distributions of about $1,000. Distributions
could change if Securities are paid or sold before
maturity, or if Trust expenses change.
2. WHAT ARE STRIPPED U.S. TREASURY SECURITIES?
These are directly issued by the U.S. Treasury and are
issued to fund various government activities. They pay no
interest until maturity, when they pay a fixed rate of
interest and principal.
3. WHAT IS THE INVESTMENT STRATEGY?
O Each Series consists of two Trusts, each designated by the
year in which the stripped Treasury securities mature. Each
Trust plans to hold to maturity the stripped U.S. Treasury
securities along with interest bearing Treasury notes whose
interest will equal Trust expenses. Each Trust is a unit
investment trust which means that, unlike a mutual fund,
the Trust's portfolio is not managed.
o The securities but not the Trusts or the units are direct
obligations of the United States.
o 100% of each Portfolio consists of United States government
Treasury securities.
4. WHAT ARE THE SIGNIFICANT RISKS?
YOU CAN LOSE MONEY BY INVESTING IN THE FUND. THIS CAN HAPPEN
FOR VARIOUS REASONS, INCLUDING:
o Rising interest rates can reduce the price of your units.
o When you sell your units, they may be worth more or less
than your cost.
o Unit prices may be subject to greater fluctuations in
response to changing interest rates than a fund consisting
of debt obligations of comparable maturities that pay
interest currently. This risk is greater when the period to
maturity is longer.
o A Trust will receive early returns of principal if
securities are sold before they mature. If this happens your
income will decline and you may not be able to reinvest the
money you receive at as high a yield or as long a maturity.
5. ARE THE TRUSTS APPROPRIATE FOR YOU?
Yes, if you want safety of capital from an investment in
stripped U.S. Treasury securities priced at a deep discount
from their face amounts. You will benefit from
professionally selected and supervised portfolios of U.S.
government backed securities.
The Trusts are not appropriate for you if you want current
income or if you want a speculative investment that changes
to take advantage of market movements.
6. ARE THE TRUSTS MANAGED?
Unlike mutual funds, the Trusts are not managed and
securities are not sold because of market changes. Rather,
experienced Defined Asset Funds financial analysts regularly
review the securities. A Trust may sell a security if
certain adverse credit or other conditions exist.
7. HOW DO I BUY UNITS?
There is no minimum investment.
You can buy units from the Trustee, which is listed later in
this prospectus.
3
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8. HOW DO I SELL UNITS?
You may sell your units at any time to the Trustee for the
net asset value determined at the close of business on the
date of sale minus the adjustment factor set forth on page 5
under 11. What is the Price of a Unit? You will not pay any
fee when you sell your units.
9. HOW ARE DISTRIBUTIONS MADE AND TAXED?
Stripped Treasury securities do not pay interest until they
mature, so you should not expect any distributions of
interest income. When the stripped Treasury securities
mature, the proceeds will be distributed.
10. WHAT ARE THE TRUSTS' FEES AND EXPENSES?
The tables on the following page show the costs and expenses
you may pay, directly or indirectly, when you invest in the
Trusts.
There is no Sales Fee (Load) on purchases, but income on
units is subject to the Sponsor's administrative fee which
reimburses the Sponsor for its direct costs (without profit)
in administering the Trusts.
4
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U.S. GOVERNMENT ZERO COUPON SERIES 3
AMOUNT PER
10 UNITS
------------------------
1999 2009
TRUST TRUST
----------- -----------
$ 0.69 $ 7.49
Maximum Sponsor Administrative Fee
if you hold your units until
maturity
0.07% 0.97%
Maximum Sponsor Administrative Fee
as a % of Unit Price (as of March
31, 1999)
ESTIMATED ANNUAL TRUST OPERATING EXPENSES
AMOUNT PER
10 UNITS
--------------------
1999 2009
TRUST TRUST
--------- ---------
$ 0.50 $ 0.50
Trustee's Fee
$ 1.11 $ 0.74
Sponsor's Administrative
Fee (including updating
expenses)
$ 0.21 $ 0.14
Other Operating Expenses
--------- ---------
$ 1.82 $ 1.38
TOTAL
11. WHAT IS THE PRICE OF A UNIT?
Unit price is based on the net asset value of the Trust
plus the adjustment factor show below. An amount equal to
any principal cash, as well as net accrued but
undistributed interest on the unit, is added to the unit
price. An independent evaluator prices the securities at
3:30 p.m. Eastern time every business day. Unit price
changes every day with changes in the prices of the
securities.
UNIT PRICE PER UNIT
(as of March 31, 1999)
The 1999 Trust $97.422
The 2009 Trust $57.805
ADJUSTMENT FACTOR PER UNIT
The 1999 Trust $.058
The 2009 Trust $.208
12. WHAT IS THE EXPECTED RETURN?
The Estimated Yield to Maturity represents the annual
percentage return to you, based on amortization of
discount, compounded semi-annually, divided by Unit Price.
It assumes that interest income from the Treasury note
will equal expenses.
ESTIMATED YIELD TO MATURITY
(as of March 31, 1999)
The 1999 Trust 4.198%
The 2009 Trust 5.471%
U.S. GOVERNMENT ZERO COUPON SERIES 8
AMOUNT PER
10 UNITS
------------------------
2004 2014
TRUST TRUST
----------- -----------
$ 2.36 $ 5.45
Maximum Sponsor Administrative Fee
if you hold your units until
maturity
0.26% 0.85%
Maximum Sponsor Administrative Fee
as a % of Unit Price (as of March
31, 1999)
ESTIMATED ANNUAL TRUST OPERATING EXPENSES
AMOUNT PER
10 UNITS
--------------------
2004 2014
TRUST TRUST
--------- ---------
$ 0.50 $ 0.50
Trustee's Fee
$ 0.46 $ 0.36
Sponsor's Administrative
Fee (including updating
expenses)
$ 0.25 $ 0.13
Other Operating Expenses
--------- ---------
$ 1.21 $ 0.99
TOTAL
11. WHAT IS THE PRICE OF A UNIT?
Unit price is based on the net asset value of the Trust
plus the adjustment factor show below. An amount equal to
any principal cash, as well as net accrued but
undistributed interest on the unit, is added to the unit
price. An independent evaluator prices the securities at
3:30 p.m. Eastern time every business day. Unit price
changes every day with changes in the prices of the
securities.
UNIT PRICE PER UNIT
(as of March 31, 1999)
The 2004 Trust $77.472
The 2014 Trust $41.493
ADJUSTMENT FACTOR PER UNIT
The 2004 Trust $.085
The 2014 Trust $.105
12. WHAT IS THE EXPECTED RETURN?
The Estimated Yield to Maturity represents the annual
percentage return to you, based on amortization of
discount, compounded semi-annually, divided by Unit Price.
It assumes that interest income from the Treasury note
will equal expenses.
ESTIMATED YIELD TO MATURITY
(as of March 31, 1999)
The 2004 Trust 5.025%
The 2014 Trust 5.812%
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WHAT YOU CAN EXPECT FROM YOUR INVESTMENT
DISTRIBUTIONS AT MATURITY
Each Trust normally holds any net income and principal received until the
stripped Treasury securities mature. Although no distributions of income are
expected, the Trustee may distribute any available balances in the Income
Account in June or December of any year, as instructed by the Sponsor.
RETURN FIGURES
We cannot predict your actual return, which will vary with unit price, how long
you hold your investment and changes in the portfolio, interest income and
expenses.
Estimated Yield To Maturity
The estimated yield to maturity per unit of each Trust is the annual percentage
return to you based on amortization of discount, compounded semi-annually,
divided by the Unit Price. We assume that interest income on the Treasury note
will equal expenses and other deductions. If the price of the units is less than
stated, the yield to maturity will be greater; if the price is greater (other
than additional accrued original discount), the yield to maturity will be less.
The economic effect of purchasing units if you hold your units until maturity of
the securities is that you should receive approximately a fixed yield, not only
on your original investment but on all earned discount during the life of the
securities. The assumed or implicit automatic reinvestment at market rates at
the time of purchase of the portion of the yield represented by earned discount
differentiates the Trusts from funds consisting of customary securities on which
current periodic interest is paid at market rates at the time of issue.
Accordingly, you virtually eliminate your risk of being unable to invest
distributions at a rate as high as the yield on your Trust, but will forgo the
ability to reinvest at higher rates in the future.
The price per unit of each Trust will vary in accordance with fluctuations in
the prices of the securities held by the Trust. Changes in the Offer and
Redemption Price per unit or in a Trust's expenses will result in changes in the
yields to maturity.
RECORDS AND REPORTS
You will receive:
o a notice from the Trustee when new securities are deposited in exchange or
substitution for securities originally deposited;
o an annual report on Trust activity; and
o annual tax information. This will also be sent to the IRS. You must report the
amount of interest received during the year.
You may request:
o copies of evaluations to enable you to comply with federal and state tax
reporting requirements; and
o audited financial statements of the Trusts.
You may inspect records of Trust transactions at the Trustee's office during
regular business hours.
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THE RISKS YOU FACE
INTEREST RATE RISK
Investing involves risks, including the risk that your investment will decline
in value if interest rates rise. Generally, the price of stripped Treasury
securities fluctuates more widely than prices of debt securities that pay
interest currently. Also, securities with longer maturities will change in value
more than securities with shorter maturities. Of course, we cannot predict how
interest rates may change.
REDUCED DIVERSIFICATION RISK
If many investors sell their units, a Trust will have to sell securities. This
could reduce the diversification of your investment and increase your share of
Trust expenses.
LITIGATION RISK
We do not know of any pending litigation that might have a material adverse
effect upon the Trusts.
SELLING UNITS
You can sell your units at any time for a price based on net asset value. Your
net asset value is calculated each business day by:
o adding the value of the securities, net accrued interest, cash and any
other Trust assets;
o subtracting accrued but unpaid Trust expenses, unreimbursed Trustee
advances, cash held to buy back units or for distribution to investors and
any other Trust liabilities; and
o dividing the result by the number of outstanding units.
Your net asset value when you sell may be more or less than your cost because of
market movements and changes in the portfolio.
SELLING UNITS TO THE TRUSTEE
You can sell your units to the Trustee at any time by sending the Trustee a
letter (with any outstanding certificates if you hold Unit certificates). You
must properly endorse your certificates (or execute a written transfer
instrument with signatures guaranteed by an eligible institution). Sometimes,
additional documents are needed such as a trust document, certificate of
corporate authority, certificate of death or appointment as executor,
administrator or guardian.
Within seven days after your request and the necessary documents are received,
the Trustee will mail a check to you. Contact the Trustee for additional
information.
If a Trust does not have cash available to pay you for units you are selling,
the Sponsor will select securities to be sold. Securities will be selected based
on market and credit factors. These sales could be made at times when the
securities would not otherwise be sold and may result in your receiving less
than the unit par value and also reduce the size of the Trust.
There could be a delay in paying you for your units:
o if the New York Stock Exchange is closed (other than customary weekend and
holiday closings);
o if the SEC determines that trading on the New York Stock Exchange is
restricted or that an emergency exists making sale or evaluation of the
bonds not reasonably practicable; and
7
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o for any other period permitted by SEC order.
HOW THE TRUSTS WORK
PRICING
The price of a unit includes interest accrued on the securities, less expenses,
from the most recent Record Day up to, but not including, the settlement date,
which is usually three business days after the purchase date of the unit.
A portion of the price of a unit consists of cash so that the Trustee can
provide you with regular monthly income. When you sell your units you will
receive your share of this cash.
In addition, as with mutual funds, each Trust (and therefore the investors) pay
all or some of the costs of organizing the Trust including:
o cost of initial preparation of legal documents;
o federal and state registration fees;
o initial fees and expenses of the Trustee;
o initial audit; and
o legal expenses and other out-of-pocket expenses.
EVALUATIONS
An independent Evaluator values the securities on each business day (excluding
Saturdays, Sundays and the following holidays as observed by the New York Stock
Exchange: New Year's Day, Presidents' Day, Martin Luther King, Jr. Day, Good
Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas;
and the following federal holidays: Columbus Day and Veterans Day). Values are
based on current bid or offer prices for the securities or comparable bonds. The
Evaluator receives a minimum fee of $5.00 plus 25 cents for each issue of
underlying securities in excess of 50 issues, treating separate maturities as
separate issues.
INCOME
The Trustee credits interest to an Income Account and other receipts to a
Capital Account. The Trustee may establish a Reserve Account by withdrawing from
these accounts amounts it considers appropriate to pay any material liability.
These accounts do not bear interest.
EXPENSES
The Trustee is paid semiannually. It also benefits when it holds cash for the
Trusts in non-interest bearing accounts. The Trustee may also receive additional
amounts:
o to reimburse the Trustee for the Trusts' operating expenses;
o for extraordinary services and costs of indemnifying the Trustee and the
Sponsors;
o costs of actions taken to protect the Trusts and other legal fees and
expenses;
o expenses for keeping the Trust's registration statements current; and
o Trust termination expenses and any governmental charges.
The Sponsor is paid an administrative fee to reimburse it for certain direct
expenses. The Sponsor will not collect the administrative fee on units held by
any Plan at any time when it has no reimbursable expenses. Legal, typesetting,
electronic filing and regulatory filing fees and expenses associated with
updating each Series's registration statement yearly are also now chargeable to
the Trusts.
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While this fee may exceed the amount of these costs and expenses attributable to
the Trusts, the total of these fees for all Series of Defined Asset Funds will
not exceed the aggregate amount attributable to all of these Series for any
calendar year. The Trusts also pay the Evaluator's fees.
The Trustee's and Evaluator's fees may be adjusted for inflation without
investors' approval.
The Sponsor will pay advertising and selling expenses at no charge to the
Trusts. If Trust expenses exceed initial estimates, the Trust will owe the
excess. The Trustee has a lien on Trust assets to secure reimbursement of Trust
expenses and may sell securities if cash is not available.
PORTFOLIO CHANGES
The Sponsors and Trustee are not liable for any default or defect in a security.
Unlike a mutual fund, the portfolio is designed to remain intact and we may keep
securities in the portfolio even if their credit quality declines or other
adverse financial circumstances occur. However, we may sell a security in
certain cases if we believe that certain adverse credit or certain other
conditions exist.
TERMINATION
A Trust will terminate following the stated maturity or sale of the last
security in the portfolio. A Trust may also terminate earlier with the consent
of investors holding 51% of the units or if total assets of the Trust have
fallen below 40% of the face amount of securities deposited. We will decide
whether to terminate a Trust early based on the same factors used in deciding
whether or not to offer units in the secondary market.
When a Trust is about to terminate you will receive a notice, and you will be
unable to sell your units after that time. On or shortly before termination, we
will sell any remaining securities, and you will receive your final
distribution. Any security that cannot be sold at a reasonable price may
continue to be held by the Trustee in a liquidating trust pending its final
sale.
You will pay your share of the expenses associated with termination, including
brokerage costs in selling securities. This may reduce the amount you receive as
your final distribution.
NO CERTIFICATES
No Certificates will be issued for units. The Trustee will credit your account
with the number of your units.
TRUST INDENTURE
Each Trust is a 'unit investment trust' governed by a Trust Indenture, a
contract among the Sponsor, the Trustee and the Evaluator, which sets forth
their duties and obligations and your rights. A copy of the Indenture is
available to you on request to the Trustee. The following summarizes certain
provisions of the Indenture.
The Sponsor and the Trustee may amend the Indenture without your consent:
o to cure ambiguities;
o to correct or supplement any defective or inconsistent provision;
o to make any amendment required by any governmental agency; or
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o to make other changes determined not to be materially adverse to your best
interest (as determined by the Sponsors).
Investors holding 51% of the units may amend the Indenture. Every investor must
consent to any amendment that changes the 51% requirement. No amendment may
reduce your interest in the Fund without your written consent.
The Trustee may resign by notifying the Sponsor. The Sponsor may remove the
Trustee without your consent if:
o it fails to perform its duties and the Sponsor determines that its
replacement is in your best interest; or
o it becomes incapable of acting or bankrupt or its affairs are taken over by
public authorities.
Investors holding 51% of the units may remove the Trustee. The Evaluator may
resign or be removed by the Sponsor and the Trustee without the consent of
investors. The resignation or removal of either becomes effective when a
successor accepts appointment. The Sponsor will try to appoint a successor
promptly; however, if no successor has accepted within 30 days after notice of
resignation, the resigning Trustee or Evaluator may petition a court to appoint
a successor.
If the Sponsor fails to perform its duties or becomes bankrupt the Trustee may:
o remove it and appoint a replacement Sponsor;
o liquidate The Trust; or
o continue to act as Trustee without a Sponsor.
The Trust Indenture contains customary provisions limiting the liability of the
Trustee, the Sponsor and the Evaluator.
LEGAL OPINION
Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York 10017, as
special counsel for the Sponsor, has given an opinion that the units are validly
issued.
AUDITORS
Deloitte & Touche LLP, 2 World Financial Center, New York, New York 10281,
independent accountants, audited the Statements of Condition included in this
prospectus.
SPONSOR
The Sponsor is:
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (a wholly-owned subsidiary of
Merrill Lynch & Co., Inc.)
P.O. Box 9051,
Princeton, NJ 08543-9051
The Sponsor is a Delaware corporation and it, or its predecessor, has acted as
sponsor to many unit investment trusts. As a registered broker-dealer the
Sponsor buys and sells securities (including investment company shares) for
others (including investment companies) and participates as an underwriter in
various selling groups.
TRUSTEE
The Bank of New York,101 Barclay Street-- 17W, New York, New York 10268, is the
Trustee. It is supervised by the Federal Deposit Insurance Corporation, the
Board of Governors of the Federal Reserve System and New York State banking
authorities.
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SPONSOR'S PROFITS
The Sponsor realized a profit or loss on the initial deposit of the securities.
The Sponsor also realizes a profit or loss on each deposit of securities into a
Trust.
CODE OF ETHICS
Merrill Lynch, as Sponsor, has adopted a code of ethics requiring preclearance
and reporting of personal securities transactions by its employees with access
to information on portfolio transactions. The goal of the code is to prevent
fraud, deception or misconduct against the Trusts and to provide reasonable
standards of conduct.
YEAR 2000 ISSUES
Many computer systems were designed in such a way that they may be unable to
distinguish between the year 2000 and the year 1900 (commonly known as the 'Year
2000 Problem'). We do not expect that the computer system changes necessary to
prepare for the Year 2000 will cause any major operational difficulties for the
Trusts. The Year 2000 Problem may adversely affect the issuers of the securities
contained in the Trusts, but we cannot predict whether any impact will be
material to any Trust as a whole.
TAXES
[TO COME]
SUPPLEMENTAL INFORMATION
You can receive at no cost supplemental information about the Trusts by calling
the Trustee. The supplemental information includes more detailed risk disclosure
about the securities that may be in a Trust's portfolio and general information
about the structure and Trusts. The supplemental information is also available
from the SEC.
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DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
REPORT OF INDEPENDENT ACCOUNTANTS
The Sponsor, Trustee and Holders
of Defined Asset Funds - Government Securities Income Fund,
U.S. Government Zero Coupon Bond Series - 3:
We have audited the accompanying statements of condition of the 1999 Trust and
the 2009 Trust of Defined Asset Funds - Government Securities Income Fund, U.S.
Government Zero Coupon Bond Series - 3, including the portfolios, as of March
31, 1999 and the related statements of operations and of changes in net assets
for the years ended March 31, 1999, 1998 and 1997. These financial statements
are the responsibility of the Trustee. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Securities owned at
March 31, 1999, as shown in such portfolios, were confirmed to us by The Bank of
New York, 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
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the above-mentioned Trusts of
Defined Asset Funds - Government Securities Income Fund, U.S. Government Zero
Coupon Bond Series - 3 at March 31, 1999 and the results of their operations and
changes in their net assets for the above-stated years in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, N.Y.
July 9, 1999
D-1
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DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
STATEMENTS OF CONDITION
AS OF MARCH 31, 1999
<TABLE>
1999
TRUST
<S> <C>
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $41,602,531) (Note 1) $41,745,450
Receivable for securities sold 107,828
Cash 841,417
Receivable for units created 21,633
Total trust property 42,716,328
LESS LIABILITIES:
Accrued expenses $164,808
Redemptions payable 11,308 176,116
NET ASSETS (Note 2) $42,540,212
UNITS OUTSTANDING 437,428.181
UNIT VALUE $97.25
2009
TRUST
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $67,683,305) (Note 1) $69,300,631
Receivable for securities sold 202,783
Receivable for units created 59,415
Accrued interest receivable 63,249
Cash 43,758
Total trust property 69,669,836
LESS LIABILITIES:
Accrued expenses $307,486
Redemptions payable 178,126 485,612
NET ASSETS (Note 2) $69,184,224
UNITS OUTSTANDING 1,197,716.636
UNIT VALUE $57.76
See Notes to Financial Statements.
</TABLE>
D-2
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DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
STATEMENTS OF OPERATIONS
1999 TRUST
<TABLE>
<CAPTION>
Years Ended March 31,
1999 1998 1997
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 55,106 $ 90,975 $ 89,339
Accretion of original issue discount 2,171,445 2,579,303 2,713,976
Trustees' fees and expenses (23,860) (25,098) (24,566)
Sponsors' fees (52,971) (55,717) (54,327)
Net investment income 2,149,720 2,589,463 2,724,422
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Realized gain (loss) on securities sold or
redeemed (157,664) 1,650,136 511,081
Unrealized appreciation (depreciation) of
investments 646,573 (760,847) (1,452,946)
Net realized and unrealized gain (loss) on
investments 488,909 889,289 (941,865)
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $2,638,629 $ 3,478,752 $1,782,557
2009 TRUST
Years Ended March 31,
1999 1998 1997
INVESTMENT INCOME:
Interest income $ 170,818 $ 184,791 $ 176,420
Accretion of original issue discount 4,013,372 4,044,507 3,714,088
Trustees' fees and expenses (61,841) (66,946) (69,167)
Sponsors' fees (91,525) (99,080) (95,167)
Net investment income 4,030,824 4,063,272 3,726,174
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Realized gain on securities sold or
redeemed 568,415 6,780,259 3,157,757
Unrealized appreciation (depreciation) of
investments 1,175,582 2,451,521 (5,311,064)
Net realized and unrealized gain (loss) on
investments 1,743,997 9,231,780 (2,153,307)
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $5,774,821 $13,295,052 $1,572,867
See Notes to Financial Statements.
</TABLE>
D-3
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
STATEMENTS OF CHANGES IN NET ASSETS
1999 TRUST
<TABLE>
<CAPTION>
Years Ended March 31,
1999 1998 1997
<S> <C> <C> <C>
OPERATIONS:
Net investment income $ 2,149,720 $ 2,589,463 $ 2,724,422
Realized gain (loss) on securities sold or
redeemed (157,664) 1,650,136 511,081
Unrealized appreciation (depreciation) of
investments 646,573 (760,847) (1,452,946)
Net increase in net assets resulting from
operations 2,638,629 3,478,752 1,782,557
INCOME DISTRIBUTIONS (169,936)
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units 6,281,202 7,167,229 7,886,095
Redemptions of units (11,722,543) (8,190,428) (4,987,254)
Net capital share transactions (5,441,341) (1,023,199) 2,898,841
NET INCREASE (DECREASE) IN NET ASSETS (2,802,712) 2,285,617 4,681,398
NET ASSETS AT BEGINNING OF YEAR 45,342,924 43,057,307 38,375,909
NET ASSETS AT END OF YEAR $42,540,212 $45,342,924 $43,057,307
PER UNIT:
Net asset value at end of year. $97.25 $91.71 $84.89
Income distribution $0.34
TRUST UNITS OUTSTANDING AT END OF YEAR 437,428.181 494,393.080 507,233.904
See Notes to Financial Statements.
</TABLE>
D-4
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
2009 TRUST
Years Ended March 31,
1999 1998 1997
OPERATIONS:
<S> <C> <C> <C>
Net investment income $4,030,824 $ 4,063,272 $ 3,726,174
Realized gain on securities sold or
redeemed 568,415 6,780,259 3,157,757
Unrealized appreciation (depreciation) of
investments 1,175,582 2,451,521 (5,311,064)
Net increase in net assets resulting
from operations 5,774,821 13,295,052 1,572,867
INCOME DISTRIBUTIONS (258,100)
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units 19,310,001 22,392,825 34,673,281
Redemptions of units (22,896,109) (28,555,985) (19,221,804)
Net capital share transactions (3,586,108) (6,163,160) 15,451,477
NET INCREASE IN NET ASSETS 2,188,713 6,873,792 17,024,344
NET ASSETS AT BEGINNING OF YEAR 66,995,511 60,121,719 43,097,375
NET ASSETS AT END OF YEAR $69,184,224 $66,995,511 $60,121,719
PER UNIT:
Net asset value at end of year $57.76 $53.27 $43.63
Income distribution $0.19
TRUST UNITS OUTSTANDING AT END OF YEAR 1,197,716.636 1,257,566.106 1,377,965.943
</TABLE>
See Notes to Financial Statements.
D-5
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940 as a Unit
Investment Trust. The Fund consists of the 1999 and 2009 Trusts, each a
separate unit investment trust. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of
its financial statements. The policies are in conformity with generally
accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator based on
the mean between bid and offering prices for the securities (see
"Redemption - Computation of Redemption Price Per Unit" in this
Prospectus).
(b) Cost of securities has been adjusted to include the accretion of
original issue discount on the Stripped Treasury Securities.
(c) Each Trust is not subject to income taxes. Accordingly, no provision
for such taxes is required.
2. NET ASSETS, MARCH 31, 1999
1999 TRUST
Cost of 437,428.181 units at Dates of Deposit $27,932,143
Redemption of units - Net cost of 709,778.437 units
redeemed less redemption amounts (2,254,979)
Realized gain on securities sold or redeemed 4,437,541
Unrealized depreciation of investments 142,919
Net capital applicable to Holders 30,257,624
Undistributed net investment income - accretion of
original issue discount ($12,384,159) less excess
($101,571) of fees and expenses over interest income 12,282,588
Net assets $42,540,212
2009 TRUST
Cost of 1,197,716.636 units at Dates of Deposit $42,622,971
Redemption of units - Net cost of 3,068,794.912 units
redeemed less redemption amounts (5,239,941)
Realized gain on securities sold or redeemed 15,638,285
Unrealized appreciation of investments 1,617,326
Net capital applicable to Holders 54,638,641
Undistributed net investment income - accretion of
original issue discount ($14,670,848) less excess
($125,265) of fees and expenses over interest income 14,545,583
Net assets $69,184,224
D-6
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
NOTES TO FINANCIAL STATEMENTS
3. CAPITAL SHARE TRANSACTIONS
Additional units were issued by the Trusts as follows:
Year Ended Year Ended Year Ended
Trust March 31, 1999 March 31, 1998 March 31, 1997
1999 66,576.508 80,636.482 94,494.433
2009 334,594.792 453,892.146 803,841.810
Units were redeemed as follows:
Year Ended Year Ended Year Ended
Trust March 31, 1999 March 31, 1998 March 31, 1997
1999 123,541.407 93,477.306 58,572.000
2009 394,444.262 574,291.983 433,776.222
Units may be redeemed at the office of the Trustee upon tender thereof
generally on any business day or, in the case of uncertificated units, upon
delivery of a request for redemption and payment of any relevant tax. The
Trustee may redeem units either in cash or in kind at the option of the Holder
as specified in writing to the Trustee.
4. INCOME TAXES
All Trust items of income received, accretion of original issue discount,
expenses paid, and realized gains and losses on securities sold are attributable
to the Holders, on a pro rata basis, for Federal income tax purposes in
accordance with the grantor trust rules of the United States Internal Revenue
Code.
At March 31, 1999, the cost of investment securities for Federal income tax
purposes was approximately equivalent to the adjusted cost as shown in each
Trust's portfolio.
5. DISTRIBUTIONS
It is anticipated that the Trusts will make distributions on the first
business day following the maturity of their holdings in the Stripped Treasury
Securities which are non-interest bearing. Any excess of interest income over
fees and expenses may be distributed periodically.
D-7
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 3
PORTFOLIOS
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Portfolio No. and Title Interest Face Adjusted
of Securities Rates Maturities Amount Cost(1) Value(1)
<S> <C> <C> <C> <C> <C>
1999 TRUST
1 Stripped Treasury Securities(2) 0.000% 11/15/99 $ 42,925,000 $41,602,531 $41,745,450
Total $ 42,925,000 $41,602,531 $41,745,450
2009 TRUST
1 Stripped Treasury Notes Securities 0.000% 5/15/09 $118,499,000 $65,611,629 $67,201,612
2 U.S. Treasury Bonds 9.125 5/15/09(3) 1,809,986 2,071,676 2,099,019
Total $120,308,986 $67,683,305 $69,300,631
(1) See Notes to Financial Statements.
(2) See "Risk Factors - Special Characteristics of Stripped Treasury Securities" in this Prospectus.
(3) Callable beginning 5/15/04 at par.
</TABLE>
D-8
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
REPORT OF INDEPENDENT ACCOUNTANTS
The Sponsor, Trustee and Holders
of Defined Asset Funds - Government Securities Income Fund,
U.S. Government Zero Coupon Bond Series - 8:
We have audited the accompanying statements of condition of the 2004 Trust and
the 2014 Trust of Defined Asset Funds - Government Securities Income Fund, U.S.
Government Zero Coupon Bond Series - 8, including the portfolios, as of
March 31, 1999 and the related statements of operations and of changes in net
assets for the year ended March 31, 1999 and the period February 3 to March 31,
1998. These financial statements are the responsibility of the Trustee. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Securities owned at
March 31, 1999, as shown in such portfolios, were confirmed to us by The Bank of
New York, 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
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the above-mentioned Trusts of
Defined Asset Funds - Government Securities Income Fund, U.S. Government Zero
Coupon Bond Series - 8 at March 31, 1999 and the results of their operations and
changes in their net assets for the above-stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
New York, N.Y.
July 9, 1999
D-1
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
STATEMENTS OF CONDITION
AS OF MARCH 31, 1999
<TABLE>
2004
TRUST
<S> <C>
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $7,415,484) (Note 1) $7,346,818
Accrued interest receivable 4,358
Deferred organization costs (Note 6) 34,750
Cash 57,388
Total trust property 7,443,314
LESS LIABILITIES:
Redemptions payable $ 65,461
Accrued expenses 3,168
Other liabilities (Note 6) 46,250 114,879
NET ASSETS (Note 2) $ 7,328,435
UNITS OUTSTANDING 94,795.531
UNIT VALUE $77.31
2014
TRUST
TRUST PROPERTY:
Investment in marketable securities - at value
(cost $34,409,347) (Note 1) $32,192,646
Receivable for securities sold 383,920
Receivable for units created 112
Accrued interest receivable 28,778
Deferred organization costs (Note 6) 53,500
Total trust property 32,658,956
LESS LIABILITIES:
Advance from trustee $105,673
Accrued expenses 23,812
Redemptions payable 300,841
Other liabilities (Note 6) 71,500 501,826
NET ASSETS (Note 2) $32,157,130
UNITS OUTSTANDING 766,298.039
UNIT VALUE $41.96
See Notes to Financial Statements.
</TABLE>
D-2
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Year February 3,
Ended to
March 31, March 31,
2004 TRUST 1999 1998
<S> <C> <C>
INVESTMENT INCOME:
Interest income $ 7,817 $ 243
Accretion of original issue discount 298,335 9,126
Trustees' fees and expenses (3,262) (282)
Sponsors' fees (2,991) (95)
Organizational expenses (11,500) (11,500)
Net investment income (loss) 288,399 (2,508)
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:(377)
Realized gain (loss) on securities sold or redeemed 32,811 (377)
Unrealized depreciation of investments (59,151) (9,515)
Net realized and unrealized loss on investments (26,340) (9,892)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS $ 262,059 $(12,400)
Year February 3,
Ended to
March 31, March 31,
2014 TRUST 1999 1998
INVESTMENT INCOME:
Interest income $ 42,173 $ 1,061
Accretion of original issue discount 1,250,191 28,793
Trustees' fees and expenses (21,540) (741)
Sponsors' fees (15,501) (405)
Organizational expenses (18,000) (18,000)
Net investment income 1,237,323 10,708
REALIZED AND UNREALIZED GAIN (LOSS)ON INVESTMENTS:
Realized gain on securities sold or redeemed 351,846 3,101
Unrealized appreciation (depreciation) of investments (2,222,374) 5,673
Net realized and unrealized gain (loss) on investments (1,870,528) 8,774
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS $ (633,205) $ 19,482
See Notes to Financial Statements.
</TABLE>
D-3
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
2004 TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year February 3,
Ended to
March 31, March 31,
1999 1998
<S> <C> <C>
OPERATIONS:
Net investment income $ 288,399 $ (2,508)
Realized gain (loss) on securities sold or redeemed 32,811 (377)
Unrealized depreciation of investments (59,151) (9,515)
Net increase (decrease) in net assets resulting from
operations 262,059 (12,400)
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units 10,234,173 1,642,730
Redemptions of units (4,387,293) (534,574)
Net capital share transactions 5,846,880 1,108,156
NET INCREASE IN NET ASSETS 6,108,939 1,095,756
NET ASSETS AT BEGINNING OF PERIOD 1,219,496 123,740
NET ASSETS AT END OF PERIOD $ 7,328,435 $1,219,496
PER UNIT:
Net asset value at end of period. $77.31 $70.91
TRUST UNITS OUTSTANDING AT END OF PERIOD 94,795.531 17,197.680
See Notes to Financial Statements.
</TABLE>
D-4
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
2014 TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year February 3,
Ended to
March 31, March 31,
1999 1998
<S> <C> <C>
OPERATIONS:
Net investment income $ 1,237,323 $ 10,708
Realized gain on securities sold or redeemed 351,846 3,101
Unrealized appreciation (depreciation) of investments (2,222,374) 5,673
Net increase (decrease) in net assets resulting from
operations (633,205) 19,482
CAPITAL SHARE TRANSACTIONS (Note 3):
Issuance of additional units 52,983,208 4,837,030
Redemptions of units (24,701,591) (471,223)
Net capital share transactions 28,281,617) 4,365,807
NET INCREASE IN NET ASSETS 27,648,412 4,385,289
NET ASSETS AT BEGINNING OF PERIOD 4,508,718 123,429
NET ASSETS AT END OF PERIOD $32,157,130 $ 4,508,718
PER UNIT:
Net asset value at end of period $41.96 $39.24
TRUST UNITS OUTSTANDING AT END OF PERIOD 766,298.039 114,887.494
</TABLE>
See Notes to Financial Statements.
D-5
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
2004 AND 2014 TRUSTS
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940 as a Unit
Investment Trust. The Fund consists of the 2004 and 2014 Trusts, each a
separate unit investment trust. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of
its financial statements. The policies are in conformity with generally
accepted accounting principles.
(a) Securities are stated at value as determined by the Evaluator based on
the mean between bid and offering prices for the securities (see
"Redemption - Computation of Redemption Price Per Unit" in this
Prospectus).
(b) Cost of securities has been adjusted to include the accretion of
original issue discount on the Stripped Treasury Securities.
(c) Each Trust is not subject to income taxes. Accordingly, no provision
for such taxes is required.
2. NET ASSETS, MARCH 31, 1999
<TABLE>
<CAPTION>
2004 TRUST
<S> <C>
Cost of 94,795.531 units at Dates of Deposit $ 7,140,964
Redemption of units - Net cost of 64,511.733 units
redeemed less redemption amounts 47,097
Realized gain on securities sold or redeemed 32,434
Unrealized depreciation of investments (68,666)
Net capital applicable to Holders 7,151,829
Undistributed net investment loss - accretion of
original issue discount ($198,176) less excess
($21,570) of fees and expenses over interest income 176,606
Net assets $ 7,328,435
</TABLE>
<TABLE>
<CAPTION>
2014 TRUST
<S> <C>
Cost of 766,298.039 units at Dates of Deposit $33,025,834
Redemption of units - Net cost of 578,168.169 units
redeemed less redemption amounts 354,643
Realized gain on securities sold or redeemed 354,947
Unrealized depreciation of investments (2,216,701)
Net capital applicable to Holders 31,518,723
Undistributed net investment income - accretion of
original issue discount ($669,360) less excess
($30,953) of fees and expenses over interest income 638,407
Net assets $32,157,130
</TABLE>
D-6
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
2004 AND 2014 TRUSTS
NOTES TO FINANCIAL STATEMENTS
3. CAPITAL SHARE TRANSACTIONS
Additional units were issued by the Trusts as follows:
Year February 3,
Ended to
Trust March 31, 1999 March 31, 1998
2004 134,615.574 22,692.840
2014 1,217,569.845 123,763.613
Units were redeemed as follows:
Year February 3,
Ended to
Trust March 31, 1999 March 31, 1998
2004 57,017.723 7,494.010
2014 566,159.300 12,008.889
Units may be redeemed at the office of the Trustee upon tender thereof
generally on any business day or, in the case of uncertificated units, upon
delivery of a request for redemption and payment of any relevant tax. The
Trustee may redeem units either in cash or in kind at the option of the
Holder as specified in writing to the Trustee.
4. INCOME TAXES
All Trust items of income received, accretion of original issue discount,
expenses paid, and realized gains and losses on securities sold are
attributable to the Holders, on a pro rata basis, for Federal income tax
purposes in accordance with the grantor trust rules of the United States
Internal Revenue Code.
At March 31, 1999, the cost of investment securities for Federal income
tax purposes was approximately equivalent to the adjusted cost as shown in each
Trust's portfolio.
5. DISTRIBUTIONS
It is anticipated that the Trusts will make distributions on the first
business day following the maturity of their holdings in the Stripped
Treasury Securities which are non-interest bearing. Any excess of interest
income over fees and expenses may be distributed periodically.
6. DEFERRED ORGANIZATION COSTS
Deferred organization costs are being amortized over a period of five
years. Included in "Other liabilities" in the accompanying statements of
condition are $46,250 and $53,500 for the 2004 and 2014 Trusts,
respectively, payable to the Trustee for reimbursement of costs related to
the organization of the Trusts.
D-7
<PAGE>
DEFINED ASSET FUNDS - GOVERNMENT SECURITIES INCOME FUND,
U.S. GOVERNMENT ZERO COUPON BOND SERIES - 8
PORTFOLIOS
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Portfolio No. and Title Interest Face Adjusted
of Securities Rates Maturities Amount Cost(1) Value(1)
<S> <C> <C> <C> <C> <C>
2004 TRUST
1 Stripped Treasury Securities(2) 0.000% 5/15/04 $ 9,375,000 $ 7,240,104 $ 7,173,347
2 U.S. Treasury Notes 7.250 5/15/04 159,102 174,780 173,471
Total $ 9,534,102 $ 7,415,484 $ 7,346,818
2014 TRUST
1 Stripped Treasury Securities (2) 0.000% 5/15/14 $75,913,000 $33,156,389 $30,985,941
2 U.S. Treasury Bonds 7.250 5/15/16 1,050,736 1,252,958 1,206,705
Total $76,963,736 $34,409,347 $32,192,646
(1) See Notes to Financial Statements.
(2) See "Risk Factors - Special Characteristics of Stripped Treasury
Securities" in this Prospectus.
</TABLE>
D-8
<PAGE>
Defined
Asset FundsSM
HAVE QUESTIONS ? GOVERNMENT SECURITIES INCOME FUND
Request the most recent free U.S GOVERNMENT ZERO COUPON BOND SERIES
Information Supplement 3 AND 8
that gives more details about (Unit Investment Trusts)
the Trusts, by calling: ---------------------------------------
The Bank of New York This Prospectus does not contain
1-800-221-7771 complete information about the
investment company filed with the
Securities and Exchange Commission in
Washington, D.C. under the:
o Securities Act of 1933 (file nos.
33-26716 and 333-36109) and
o Investment Company Act of 1940 (file
no. 811-2810).
TO OBTAIN COPIES AT PRESCRIBED RATES--
WRITE: Public Reference Section of the
Commission
450 Fifth Street, N.W., Washington,
D.C. 20549-6009
CALL: 1-800-SEC-0330.
VISIT: http://www.sec.gov.
---------------------------------------
No person is authorized to give any
information or representations about
this Fund not contained in this
Prospectus or the Information
Supplement, and you should not rely on
any other information.
---------------------------------------
When units of this Fund are no longer
available, this Prospectus may be used
as a preliminary prospectus for a
future series, but some of the
information in this Prospectus will be
changed for that series.
Units of any future series may not be
sold nor may offers to buy be accepted
until that series has become effective
with the Securities and Exchange
Commission. No units can be sold in any
State where a sale would be illegal.
11352--7/99
